AzBusiness March/April 2018 by AZ Big Media

CONNECT » GUIDE » INSPIRE

MARCH // APRIL 2018

From left: Joel Barthelemy, GlobalMed; Jeanine Jerkovic, City of Surprise; and Doug Bruhnke, Global Chamber.

GOING GLOBAL

$4.95

How your company can take on the world TOP 100 LAWYERS IN ARIZONA

EAST VALLEY PARTNERSHIP

HOSPITALITY SALES & MARKETING ASSOCIATION INTERNATIONAL

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Table of Contents 6

Trendsetters

CEO Series

Healthcare

Real Estate Outlook

Banking

Global Business

Technology

Minorities in Business

Marketing

44 Dining 46 Top 100 Lawyers East Valley Partnership 66 81 Hospitality Sales & Marketing Association 92 Visit Glendale

FROM SLEEPY TO SUBLIME

y life seems to have revolved around the east. I was born on the East Coast. I graduated from East High School. So it seemed fitting when we moved to Arizona just before the turn of the millennium that we bought a house in the East Valley — Red Mountain Ranch in East Mesa. We loved the neighborhood. Quiet neighbors. Clean air. Tonto National Forest next to us. There was even a grocery store a couple miles away … but that was about it. No gyms. No entertainment. Scarce retail. No restaurants. And if we wanted to go out to eat, it wasn’t easy. This was pre-Loop 202. It was a major excursion to leave the ’hood. My, how times have changed. That neighborhood is now filled with a plethora of dining options. Some of the most progressive and innovative healthcare facilities call the East Valley home. And if you want to go out in Scottsdale or Tempe or see a game in Downtown Phoenix, you just jump on the 202 and you’re there in minutes. But best of all, if you’re looking for a job or career advancement, the East Valley is the place to be. The median household income in the East Valley is $62,587, which beats Denver ($58,003), Los Angeles ($52,024) and Salt Lake City ($47,243). But here’s the kicker: If you’re raising kids and you want them to stay close, projections estimate that the East Valley will create more than 400,000 new jobs in the next 30 years. Don’t forget to call your mother, kids. Read why PHX East Valley has become such a hotbed for growth and innovation in the East Valley Partnership supplement inside this issue of Az Business. Enjoy.

CONNECT » GUIDE » INSPIRE

MARCH // APRIL 2018

From left: Joel Barthelemy, GlobalMed; Jeanine Jerkovic, City of Surprise; and Doug Bruhnke, Global Chamber.

GOING GLOBAL

$4.95

How your company can take on the world

TOP 100 LAWYERS IN ARIZONA

EAST VALLEY PARTNERSHIP

HOSPITALITY SALES & MARKETING ASSOCIATION INTERNATIONAL

ON THE COVER:

From left: Joel Barthelemy, GlobalMed; Jeanine Jerkovic, City of Surprise; and Doug Bruhnke, Global Chamber.

AB | March - April 2018

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

SHOUT-OUTS AN AMAZING BANKING CAREER COMES TO A CLOSE

Ed Zito has been one of the most influential leaders in Arizona’s banking sector for many years. As he retires as president of Alliance Bank of Arizona, we get his thoughts on an amazing career. Az Business: Looking back, what professional accomplishment gives you the most pride? Ed Zito: The overall growth and impact of Alliance Bank of Arizona becoming Arizona’s largest locallyheadquartered bank in less than 15 years is a remarkable team accomplishment. I must admit that the most rewarding part of my career is attracting and developing talented bankers. It has been rewarding to watch experienced and new banking professionals grow and succeed through their own professional accomplishments. Knowing that I’ve played a small part in bankers becoming strategic contributors to the bank, their communities and their local economy makes me really proud. AB: What advice would you give an aspiring banking leader entering the industry today? EZ: Always stay client focused. Be an advocate for your clients. Understanding what is most important to your clients and how you can help them succeed are the keys to being a value-added, successful banker. The ability to engage, connect and add value to clients, prospects and referral sources is a differentiator.

TOP ATTORNEYS EARN ACC AWARDS A sold-out crowd recognized the important and vital role that in-house counsel plays in the success of a business at the 2018 Arizona Corporate Counsel Awards. Here are the winners:

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: David McGlothlin | Jesse A. Millard Interns: Will Everett | Emily Gadberry | Sage Schneider Contributing writers: Rachel Gettinger | Derek Hall | Alexis Krisay Andrew Nicla | Erin Thorburn | Steven G. Zylstra ART Art director: Mike Mertes Graphic designer: Bruce Andersen MARKETING/EVENTS Marketing & events manager: Cristal Rodriguez Marketing specialist: Gloria Del Grosso Marketing designer: Jennifer Childres OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Amanda Bruno AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Thomas Patterson AZ BUSINESS ANGELS Director of sales: Cindy Kurtze AZ BUSINESS LEADERS Director of sales: Sheri Brown

Up-and-Comer: Anne Kaufman, vice president and senior corporate counsel, Troon Golf

AZ HOME & DESIGN

Nonprofit: Bhavi Shah, executive vice president and general counsel, Blood Systems

AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry

Government/Municipal/Public Sector: Andy Kvesic, legal division chief counsel, Arizona Corporation Commission Medium Private Company: Stephen Beaver, senior vice president and general counsel, Aspect Software Large Private Company: Tracy Cheney, general counsel, Early Warning Services Community Impact: PetSmart legal department Medium Public Company: Todd Carlson, general counsel, Knight-Swift Transportation Large Public Company: Steven Fishbach, general counsel, TPI Composites Legal Department of the Year: Intel Corporation 4

AB | March - April 2018

EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts 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 2018 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.

20 18 MARK YOUR CALENDARS FOR THE 11TH ANNUAL HEALTHCARE LEADERSHIP AWARDS! Az Business Magazine will honor the accomplishments of individuals and organizations that have made strides in helping Arizonans receive better health care.

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AB | March - April 2018 5

TRENDSETTERS

TOP 10 FINANCIAL ADVISORS IN PHOENIX

Finding a financial advisor is no easy task, so SmartAsset made it easier for Arizonans by pouring hours of research into hundreds of firms to determine Phoenix’s top financial advisor firms. Here are the Top 10, as determined by SmartAsset:

FIRM ASSETS MINIMUM NAME MANAGED ASSETS 1. Versant Capital Management 2. Windsor Capital Management 3. KeatsConnelly 4. Hatton Consulting 5. Pathlight Investors 6. RTS Private Wealth Management 7. Ironwood Wealth Management 8. Your Source Financial 9. Heritage Wealth Management 10. Barnes Investment Advisory

$623,621,600 $2,000,000 $506,241,400 $200,000 $305,167,600 $300,000 $290,213,800 No minimum $263,648,800 No minimum $239,811,400 $1,000,000 $204,000,500 $250,000 $187,635,900 No minimum $159,290,000 $50,000 $138,960,400 $5,000

Where does Phoenix rank for

tech hiring?</H1>

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Phoenix is a hot spot for technology jobs, according to Robert Half Technology’s IT Hiring Forecast and Local Trend Report for 2018. Phoenix ranked 11th in the list of top cities for tech hiring in the next six months, with 22 percent of local CIOs planning to add full-time IT professionals to their teams. The national average is 21 percent. San Diego ranked No. 1 with 29 percent CIOs planning to add full-time IT professionals. Here are the skills those CIOs are seeking:

• Database management • Desktop support • Telecommunications support • Wireless network management • Business intelligence and reporting services

Where will Arizonans

vacation this year?

Are you already planning your summer vacation? The researchers at InsureMyTrip rounded up a list of the most popular international destination by each state. Based on the compiled data, here are the top international destinations Arizona residents plan to visit this year.

AB | March - April 2018

How long does

$1 MILLION

last in retirement in Phoenix? Having $1 million set aside for retirement sounds like a good plan, right? In many places that could be the case. However, that $1 million retirement fund will get you a lot further in some cities than it will in others. SmartAsset factored in expenses for housing, food, healthcare, utilities and more to determine where $1 million lasts the longest. Here are SmartAsset’s results: • $1 million will last 42.29 retirement years in McAllen, Texas, which ranked first. • $ 1 million lasts 30.18 years in retirement in Phoenix, ranking the city No. 164 out of 261 cities included in the study. • $ 1 million will last 31.14 retirement years in Tucson, slightly longer than in Phoenix. • That $1 million will only last 12.54 years in New York City, ranking it the worst place if you plan a long retirement.

SEDAN MERCEDES SUV EXECUTIVE VAN LIMOUSINE SPRINTER MINI BUS MOTORCOACH

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TRENDSETTERS

Arizona’s military operations pack economic punch A report that was commissioned by the Arizona Commerce Authority and prepared by the Maguire Company shows military installations in the state continue to be major economic drivers, responsible for thousands of jobs and more than $250 million in local and state tax revenue. Here are some of the findings:

•A rizona’s six military installations and four National Guard operations are responsible for creating more than 76,000 direct and indirect jobs. • Those military operations account for nearly $11.5 billion in annual economic output. • According to the report, three Arizona military installations fall on the list of Arizona’s 10 largest private employers.

Will you use your vacation time? As you start to plan your summer schedule, a new survey from Robert Half says 33 percent of Phoenix workers won’t use all their vacation time this year, citing wanting to save time for later and too much work to do as the top reasons for leaving vacation time on the table. Of those who will take all their time off, 64 percent say they’ll check in with the office.

PAR

for the

COURSE

March is the time of year when the weather is perfect, Cactus League games abound and golf courses fill up. Here are a few of Arizona’s most influential business leaders whom you might see when you tee it up. RONALD GUZIAK, president and CEO, Sun Health: “Golf is my hobby. Like the work we do, you must be a constant learner for the game to be enjoyable. Every round, every hole and every shot presents a new challenge.”

AB | March - April 2018

JOHN STANDRING, senior vice president and general manager, American Express: “I enjoy the game of golf, but I’m pretty useless and have no talent.” PAUL J. ROSHKA, JR., shareholder, Polsinelli: “Trying to outsmart the golf course’s architect and greenskeeper is what I enjoy most about the sport.” PATRICK JOYCE, senior vice president, Bankers Trust: “Golf affords me opportunities to meet different people. Of course, golf also teaches important lessons about patience, sportsmanship, dedication and hard work.”

Scottsdale really does have some status The Status Money Income Index ranked Scottsdale as the No. 6 topearning city in America. To compile its surprising Income Index, the data scientists at Status Money gathered income data from an anonymous panel of 16 million Americans. Here’s how U.S. cities ranked, based on monthly income after taxes: 1 Naperville, IL ($5,885) 2 Carlsbad, CA ($5,460) 3 Frisco, TX ($5,232) 4 Boulder, CO ($5,125) 5 Bellevue, WA ($4,884)

6 SCOTTSDALE ($4,858) 7 Irvine, CA ($4,854) 8 Cary, NC ($4,750) 9 San Mateo, CA ($4,703) 10 Alexandria, VA ($4,644)

HEIDI K. SHORT, attorney, Lewis Roca Rothgerber Christie: “I enjoy golfing with my husband and daughter. We are outside, typically on a gorgeous course, and we can easily converse as we play.”

AL STEVENS, president, The SPR Agency: “I love the feeling of a perfectly executed golf shot. If you’ve been lucky enough to do that even once, you know it becomes a never-ending pursuit to achieve that feeling again.”

AB | March - April 2018 9

TRENDSETTERS

ARIZONA IS

A HOT SPOT TO FIND A JOB To find out 2018’s “Best Places to Find a Job,” WalletHub compared more than 180 U.S. cities across 26 key indicators of job-market strength — ranging from job opportunities to employment growth to monthly average starting salary. Here are the Top 10:

1. CHANDLER, AZ 2. SCOTTSDALE, AZ 3. SAN FRANCISCO, CA 4. PEORIA, AZ 5. GILBERT, AZ 6. PLANO, TX 7. PORTLAND, ME 8. IRVINE, CA 9. MADISON, WI 10. BOSTON, MA

NOW H I RI N G !

WHICH ARE

THE BEST AIRLINES? Traveling by plane costs an average of $370 per trip. And choosing the wrong airline has the potential to take even more from us. WalletHub compared U.S. airlines to help you decide which airline to take for your next trip.

BEST OVERALL AIRLINE: Alaska Airlines

CHEAPEST AIRLINE: Spirit Airlines

MOST RELIABLE AIRLINE:

SAM FOX

MOST COMFORTABLE AIRLINE:

Power List

BEST AIRLINE FOR PETS:

named to 2018

Sam Fox was named one of 2018’s 50 most influential people in the foodservice industry by Nation’s Restaurant News. It is the fifth consecutive year that Fox made the list. The central theme of this year’s Power List is evolution and honoring industry leaders that are adapting to a changing world or helping lead that change in restaurants. Some of the standouts — including Fox and five others — were called out in a special “Evolvers” section. Boasting more than 40 locations and 14 unique concepts, Fox is the creative visionary behind one of the most successful restaurant groups in the U.S., Fox Restaurant Concepts. 10

AB | March - April 2018

Alaska Airlines

JetBlue Airways Alaska Airlines

LEAST COMPLAINED-ABOUT AIRLINE: Southwest Airlines

LOOKING FOR A NEW JOB?

You’re not alone According to a new survey from Accountemps, nearly three in 10 professionals plan to look for a new position in the next 12 months. And of the 27 markets surveyed, Phoenix tops the list with 32 percent of workers planning to look for a new job this year.

CEO SERIES

The

WRIGHT STUFF Meet the man leading the charge to reinvigorate the Frank Lloyd Wright Foundation

By MICHAEL GOSSIE

tuart Graff has been preparing for his current job since childhood. “I have been a passionate aficionado of Frank Llloyd Wright’s work since I first encountered it on a school field trip as an 8-year-old boy in Chicago,” says the CEO of the Frank Lloyd Wright Foundation. “Not only did I find the work visually interesting, but I found his whole life story to be very inspiring.” Graff had spent his life working as a corporate attorney and in business leadership roles, but was at a point that he was ready for a change when he heard the foundation was looking for a new CEO. “I thought, ‘That would be my dream job,’” Graff recalls. Now, two years into his role as CEO, Graff has already impacted the foundation, which has seen its ups and downs over 77 years. A highlight was Graff’s 2017 campaign to celebrate the 150th anniversary of Wright’s birth. The campaign garnered more than 1.5 billion impressions in six weeks, strengthening the Wright brand like never before. Az Business spoke with Graff about where he hopes to take the foundation from here.

Az Business: What strengths make you the ideal CEO for the foundation? Stuart Graff: The foundation really needed someone who could set it on sound financial footing and create a strategy that would keep it on a sound financial footing. Turnarounds were something I had done throughout my career as a corporate lawyer. So my primary goal is to establish a sound financial footing to protect Wright’s legacy. 12

AB | March - April 2018

PROVIDED PHOTO

STUART GRAFF: “The big work ahead is that we are here

to make a difference,” says the CEO of the Frank Lloyd Wright Foundation. “We don’t want to be just a pastime for people. Just as Wright did, we want to advance the way we build and live and have a positive impact on the world. We won’t be satisfied until we do that.”

AB: How does Frank Lloyd Wright fit into Arizona’s history? SG: Wright’s first foray into Arizona comes with the Biltmore. The architect — Albert Chase McArthur — was one of his apprentices. He wanted to use a type of building system called Textile Block that Wright had pioneered. So he hired Wright to come in as a consultant. Wright saw this raw, open space and said it was like, “looking at the world at the moment of creation.” Wright grew up in the Midwest, so this radically different landscape inspired him to think differently and fall in love with Arizona. AB: What were your goals for the campaign that attracted 1.5 billion impressions? SG: We wanted to accomplish three things: raise the awareness of this great American and his wonderful story of self-invention; give people the opportunity to realize that the legacy of ideas that Wright left us didn’t end with his death because many are things we are able to just finally realize today — things like sustainability and the use of natural light; and help all the other 73 Frank Llloyd Wright organizations earn more income and increase visitation at the museums around the country. AB: What are some of the things you’re working on now? SG: We are are teaming up with Paradise Valley to develop an educational initiative to bring Wright’s teachings into K-12 schools in order to teach children STEAM (science, technology, engineering, art/ architecture and math) curriculum. We are also creating new programming at Taliesin West to create a gathering place for the community. Debuting this year is “Taliesin Next,” a speaker series examining Wright’s legacy in today’s world.

HEALTHCARE

CAN THERAPY

MAKE YOU A BETTER BUSINESS LEADER?

By ERIN THORBURN

herapist, counselor, shrink, head peeper, life coach, analyst, psychotherapist, psychologist – are just some of the many (some not so endearing) titles imparted to mental health professionals. Even in an age when therapy is seemingly more common — a University of Phoenix study reports that one-quarter of adults in the U.S. admit to utilizing some form of mental health support — counseling is still highly stigmatized. An interesting notion, considering the value potential of counseling — effective communication, insight into behavior,

AB | March - April 2018

Vinck, MC, LPC, NCC, CEIP. “The ability to connect, trust and show up without our past baggage can only help us improve.” As human beings, we all inarguably have a past, and most wouldn’t admit to having a solely unblemished history. “We all have blind spots,” explains David Larimer, program clinical director at Scottsdale Recovery Center. “It’s not BASIC BENEFITS “The creation of a therapeutic alliance and uncommon for Fortune 500 companies the ability to work through historical wounds to pair a senior-level executive with a junior-level executive to mentor and help and own how our negative thought patterns may be holding us back only makes us better enlighten one another’s strengths, as well as areas in need of improvement.” leaders,” says Sierra Tucson CEO Jaime boundary setting and active listening (among others). Ironically, they are all tools that are highly essential in the workplace and invaluable for a business leader to possess. How can taking care of personal business make for better business and best leadership practices?

David Larimer

Dale E. Parsons

Kristen Ray

Jaime Vinck

BEFORE YOU BOOK, TAKE A LOOK

In pursuit of therapeutic guidance to become a better business leader, our experts stress the importance of confidentiality. Before you book an appointment, make sure that you understand your privacy and confidentiality rights. • Don’t be afraid to ask where your personal information/file is stored (both physically and electronically – a locked cabinet, in a firewall safe database?) • Visit hhs.gov/hipaa to ensure you understand HIPAA rules that have been created to protect your mental health rights • Ask how confidentiality and privacy correlate to any potential diagnosis from a counseling visit • Keep in mind that “coaches” may or may not be licensed mental health professionals; therefore, they may not be legally required to protect client confidentiality.

Exploring self-awareness and discovering character assets versus defects is the beginning, but the gathering and application of solutions and further insight is undoubtedly an added advantage of tackling self-appraisals in a safe and confidential counseling session. “Ultimately, counseling helps leaders continue to improve their quality of life while supporting their professional and personal goals and addressing the barriers that get in the way,” says Dr. Kristen Ray, DBH, LPC, behavioral health director at Bayless Integrated Healthcare.

Ray says therapeutic goals to improve one’s ability to lead their business and employees may include: • Increasing one’s self-awareness •L earning how to receive and react to feedback • Broadening perspectives •A ddressing fears associated with being in leadership positions (i.e. failure, public speaking) Once personal layers of behaviors, barriers and baggage are discussed, another major benefit a business leader can glean from therapy is how to appropriately handle interactions in the workplace. “Counseling not only helps to remove barriers to fulfilling and meaningful professional and personal relationships, but also helps business leaders be effective role models for their employees and coworkers.” Dr. Ray confirms.

SIDELINE SEMANTICS Again, despite what many would consider an increased positive perception toward seeking personal counseling, negative stigmas remain alive and well. “If you market the word ‘therapy’, there is still a stigma which can trigger an immediate response of ‘I’m not going to therapy,’” Larimer says. “The Harvard Business Review recently published an article in which the preferred language uses ‘benefits from mentoring/coaching.’” Dale E. Parsons, LCSW, director of therapy services at St. Luke’s Behavioral Health Center in Phoenix, presents the idea of “leadership coaching,” in which a specific approach to coaching focuses on business and work objectives, including the identification of personal styles that create barriers and impede the realization of organizational targets and goals. AB | March - April 2018 15

HEALTHCARE

“Leadership coaching is designed to help successful people become more effective executives,” Parsons says, “by helping to improve interpersonal or communication skills, conflict-management skills and leadership qualities.” The result, Parsons explains, is often a boost in self-confidence, assertiveness and sense of well-being. “Leaders can learn to be more adaptive and flexible to the demands and challenges of a particular situation,” he says. If semantics or stigmas aren’t a factor for a business leader looking to improve his/her skills through therapy, there are several other approaches available aside from leadership coaching. Some therapists may offer approaches such as motivational interviewing, transference and countertransference as examples. “Transference, simply put is the redirection of feelings or expectations from one person to another – or seeing the present through the lens of the past and may be positive or negative,” Vinck

explains. “Counter-transference is the projection of our own feelings or emotional entanglement with someone.” Practicing both, according to Vinck, can help yield an honest appraisal of personal and professional relationships and how to avoid behavior inhibiting ideal leadership skills. It’s important to realize that where one approach may work well with one type of business leader, it may not for another. “As a leader,” Larimer says, “There isn’t a one-size-fits-all approach.” WALK THE WALK Just as there are diverse offerings of counseling approaches, there is a vast pool of therapists from whom to select when seeking guidance in improving business leadership skills. “It would be beneficial for business leaders to identify an independently licensed therapist/counselor when seeking therapy,” Dr. Ray says. “An independently licensed therapist will

have, at a minimum, a master’s degree in counseling, social work, marriage and family therapy or a doctoral degree in counseling psychology.” Other considerations of how to pick the right coach or counselor for a business leader’s specific needs? Ask a prospective therapist if he/she receives regular guidance and help from a mental health professional, life coach or mentor. “I’d want someone who has a level of experience,” Larimer says, “ who knows what his/her blind spots are and I’d also want to know what they specialize in – organizational psychology or mentoring/ coaching leaders. I’d want a psychologist with that particular skill set.” In addition to doing your homework, take the time to discern if you can carry an ongoing relationship with a therapist. Is it a good fit? “An effective executive coach will help you gain insight, skill and confidence to bring out the best in not only you, but in those around you,” Parsons says.

DR. RAY’S BUSINESS LEADER SELF CHECK As a business leader, there are specific symptoms, “red flags” and/or situations that indicate that seeking therapy would be beneficial. Here are some examples when a leader may want to start therapy, according to Dr. Kristen Ray, behavioral health director at Bayless Integrated Healthcare: • E xperiencing changes in mood (feeling sad, down, or “not yourself”), an increase/decrease in appetite, or disruption in one’s ability to fall/stay asleep, which has lasted most days for more than 3-4 weeks. • Starting/increasing the use of alcohol or other drugs to cope with the pressures/challenges of being a business leader. • Losing someone or something close to you (for example, a death in the family, significant relationship end, or loss of a job/promotion).

AB | March - April 2018

• E xperiencing a significant trauma (chronic illness diagnosis, being the victim of a crime or accident). In addition, taking advantage of therapy on a regular basis can also be beneficial. It can help to prevent job burnout, heal unresolved wounds from one’s past and work through existential needs (self-actualization, sense of identity, etc.), which increases one’s overall quality of life.

AB | March - April 2018 17

REAL ESTATE

HOW HOT IS ARIZONA’S

REAL ESTATE SECTOR? Valley experts and homebuilders see bright forecast for housing By SAGE SCHNEIDER

ast year was a good year for the homebuilding industry, according to data collected by Belfiore Real Estate Consulting, a residential market research firm that services all of Arizona. In fact, last year was good for Arizona’s residential real estate market with boosted home sales, prices and agents making deals. Demand for both new and resale homes was higher than a year ago, while supply was balanced by a limited resale inventory. And despite the shortage of resale inventory, 7 percent more resale homes sold in December of 2017 than the year before. While the market has picked up in the past year, so has the number of people looking to capitalize on the hot market. As of January 2018, the Arizona Department of Real Estate counted 45,326 sales agents and 12,128 brokers in Arizona for 57,454 active licensees in total, a 4.4 percent increase in just one year. “Most of the increase is related to market health,” says Wendy Forsythe, COO of HomeSmart International, a technology-driven real estate company. “A positive year in the market means more people get licenses and 2017 was one of the best years for home sales in a long time.” She noted two main reasons for this. One is that housing inventory is projected to increase as builders strive to meet demand and more sales require more agents. Second, higher home prices lead to better commissions, encouraging more people to become real estate agents.

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REAL ESTATE

One might wonder if having more agents competing for a limited housing inventory will result in changing commission rates to stay competitive. HomeSmart International Jim Belfiore thinks not, mainly because the trend hasn’t been seen in other markets. For instance, markets like California that entered the downturn earlier (in 2010 or 2011) than Arizona recovered first and are now ahead in market growth. They have yet to see any indication of agents requesting higher commissions. According to Forsythe, “This may be because, from a seller’s perspective, limited inventory means properties sell faster, requiring less time, effort and expense Wendy Forsythe from an agent.” However, Belfiore Real Estate Consulting reported that, starting in September of 2017, cobrokerage fees increased above the standard 3 percent in three of the four Metro Phoenix Area regions. Some of the submarkets that experienced the highest average co-brokerage fee were North Glendale (4.0 percent), Central Scottsdale (3.3 percent), North Scottsdale (3.2 percent), Sky Harbor South (3.2 percent) and Paradise Valley (3.2 percent). However, this appeared to be only a temporary change. By November, only two regions in the Metro Phoenix area had higher than average commissions. Whether commission percentages will fluctuate during 2018 is yet to be seen.

While the market was focused heavily on rentals after the financial crisis, buying is making a comeback. “This is because the cost of renting Joe Conner in the Phoenix Metro Area is becoming less desirable than homeownership of a similar size,” says Jim Belfiore, owner of Belfiore Real Estate Consulting. “The laws of supply and demand suggest people will buy a home if they can afford it.” Currently, increased job security is boosting people’s confidence and purchasing power, allowing more potential buyers to afford a downpayment. Furthermore, the foreclosure crisis that resulted in hundreds of thousands of repossessions and Doug Fulton near-repossessions has officially passed. Foreclosures have reached near normal levels, falling 22 percent in 2016, and 28 percent by the third quarter of 2017.

MILLENNIALS ENTERING AND RENTERS RETURNING One noticeable shift in 2017 was that Millennials are now reaching a point of financial well-being. “Unlike previous generations, most Millennials have waited until their late 20s or early 30s to purchase their first home,” Belfiore says. “Now, a large percentage of Millennials are entering the housing market, increasing the percentage of first-time buyers.” This trend is expected to continue for at least the next decade. According to Homeowners Financial Group, a local mortgage banker specializing in the residential market, this transition is SALES MOVE FORWARD made easier by recent changes to conventional loan limits, which Compared with 2016, 11 percent more homes from are allowing more first-time homebuyers into the market. Joe homebuilders were sold in 2017. Typically, sales fall from Conner, branch manager and licensed mortgage professional November to December due to the holidays, but this past December saw 10 percent more homebuyers signing new purchase for HFG says, “The loan limit has been raised from $424,100 contracts than in December 2016. Throughout 2017, builders sold to $453,100, meaning that home buyers can purchase a more expensive home at a higher price point and still qualify for a loan.” an average of 32 homes for every active community, resulting in Due to this change in market subgroups and financial capability, almost 18,000 new production and semi-custom home contracts. as of 2017 the best-selling areas were new home communities with Overall, new home supply is up 6 percent, partly due to the smaller, lower-priced lots, targeting entry-level buyers. However, proliferation of condominium units in the Metro Phoenix Area. these entry-level homes (usually under $300,000) may have a Central and South has the most substantial new home supply, more limited inventory. Because of that, many first-time buyers driven primarily by the North Central, Downtown and Biltmore may want these homes, but be unable to find them, leading them East markets in the Phoenix metropolitan area. Apartments have been on the rise for the last five years, with all-time lows for to continue renting or seek alternatives elsewhere. Another subgroup showing signs of growth is in the older vacancies in the last 36 to 48 months. population that lost their homes during the financial crisis or sold Though housing has become more expensive over the last few out of necessity and began renting instead. years, Metro Phoenix is still one of the most affordable western “Recently, credit agencies have changed their policies, choosing U.S. metropolitan areas, with the median home price for 2017 around $245,000. Sales of both new and resale homes in 2016 were not to report certain judgments and liens on credit,” Conner says. higher than any year since 2006, and 2017 increased even further. “This can improve people’s credit scores, enabling buyers to get 20

AB | March - April 2018

AB | March - April 2018 21

REAL ESTATE better interest rates and qualify when they may not have been eligible previously.” With renewed confidence and repaired credit spurring them to re-enter the housing market, this older subgroup may begin buying homes again, alongside the Millennials who are buying a home for the first time. CONTINUED GROWTH FOR 2018 This year should be healthy as far as the market is concerned. “It’s the American dream to purchase your own house and most people will strive to achieve that,” Belfiore says. “Right now, we have a burgeoning population, a healthy job market and buyers with increased levels of confidence and financial wherewithal.” Belfiore reports that out of the 555 active communities in Arizona, 56 percent have 32 or fewer lots remaining. This means that if builders can maintain their 2017 sales average, they may sell out within this year. However, this doesn’t necessarily mean the number of active communities will drop. Fulton Homes is outwardly optimistic for 2018, according to CEO Doug Fulton. “We see 2018 as a year we’ll be able to hang our hats on. All leading economic indicators look great and the trends in sales are surprisingly solid even in our typically slow months of November and December,” says Fulton. “It’s time again to bet on housing.”  For the first 10 months of 2017, 12 percent more construction permits were issued than in 2016, with a projected yearly total

of 21,200. By 2018, that number is expected to be 23,500, and it could be 25,400 by 2019. In general, new openings are increasing, while close-outs become slower. Smaller community builders with fewer than 20 lots are also entering the market, and these homes tend to sell less rapidly than the Phoenix Metro Area average. Builders in high-volume sales areas, such as suburban and exurban submarkets, are upping inventory to be ready with a deliverable supply of homes. However, it should be noted that during the last two years, home construction costs increased 30 to 35 percent, so builders will most likely aim to raise prices to compensate and continue replacing land supplies. Though construction costs are rising, the projected increase in appreciation, sales volume and continued lack of resale supply offer builders an opportunity to make up the difference. While the estimated new home appreciation rate for 2017 was 4.3 percent, appreciation rate is expected to move to 5 to 7 percent within the next year. Looking ahead to the rest of 2018, there will most likely be an increase in new home sales. Builders are purchasing more land, developing new subdivisions, and working on more infill projects in urban areas, as well as vertical growth in the form of condos or town homes. However, though the 2018 market is expected to be strong, there are no dramatic increases projected. “The lack of housing inventory has increased competition between buyers, resulting in more multiple-offer situations and much faster home sales, despite the rise in home prices,” Conner says.

• Tight inventory could get tighter. Phoenix homeowners are staying put. 32% say they are not at all likely to move in the next five years. Just under one-third (27%) say they are very or completely likely to move in the next 5 years. • 67% of Phoenix homeowners feel at least slightly “stuck’” in their current home and unable to move. 33% feel “not at all” stuck.

BUYING AND SELLING

Opendoor, the top online home selling and buying entity, conducted a Pulse of Phoenix market survey. The survey looks at local date of home buying and selling trends across the Valley and addresses a variety of ideas and subjects for anyone looking to make a move. Here’s some of key data points:

AB | March - April 2018

• 31% of homeowners would rather get a root canal than go through the process of selling their home. • If moving was stress-free and simple, most people would opt for more space, or a change of pace. 35% would move to a bigger house, 27% would move to another city for a better lifestyle, 24% would move closer to family and 17% would move to another city for a new or better job. • Overall, Arizona and Phoenix residents say they are happy where they’re at. 55% of homeowners say Arizona is”’very” or “‘completely” ideal for them and their family. Only 5% say it’s “not at all”ideal. 53% of homeowners say Phoenix is “very” or “completely” ideal. 55% of homeowners love their current Phoenix neighborhood, saying it is “very” or “completely” ideal.

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BANKING

BUILDING

MOMENTUM The housing market is red-hot once again, but with increased regulation, is the boom giving banks a boost this time?

AB | March - April 2018

By WILL EVERETT

or the first time since the Great Recession, the housing market in the Valley is starting to show signs of heating up as unemployment continues to decrease, the population continues to grow and home prices rise. There is no question that the Valley was hit hard during the economic downturn. According to the Zillow Home Value Index — which estimates the median home value — the Phoenix market bottomed out at $100,000 in the late part of 2011. And in 2012, Trulia found that Arizona was the fourth most depressed housing market in the United States, with home price declines in the 40 percent range. “Arizona was among the hardest hit states in the nation,” says Joel Johnson, president of FirstBank — East Valley Market. Since then, however, asking prices increased 18 percent. As of the start of 2018, the Zillow Home Value Index was at $224,000 and is projected to reach $243,000 by the end of this year. The median listing price sits at $265,000, according to Zillow’s data. SENSE OF DÉJÀ VU With home prices starting to climb, a low housing supply in the Valley, a growing population and low interest rates still reigning supreme, many may be wondering if we’re headed into another bubble. From afar, a sense of déjà vu could be taking place, but there are differences this time. “We’re not experiencing substantial gains in home prices like other metropolitan areas are, and I think that’s put us in a much stronger spot than we were in before,” Johnson says. As to why the market has been red hot, Johnson points to the businesses that continue to move to Arizona, specifically to the Phoenix metropolitan area. Tech companies have flocked to Tempe, creating more than 100,000 jobs, similar to before the recession. Banks, however, remain cautious. “The influx of innovative businesses relocating or expanding here — along with the great weather and climate — has made Arizona a pretty desirable place to live and work,” Johnson says. “It makes sense our real estate market is doing so well.” AB | March - April 2018 25

BANKING

Kirtus Brutsman

Paris Davis

Kirtus Brutsman, financial advisor at Wilde Wealth Management says that, “We now see that Arizona ranks 12th in job growth. In fact, we are expected to more than double the national rate in the long term, giving Arizona the legs needed to run for the next 30 years.” Johnson also mentions, “I think we’re all being a little cautious. The banking industry is a heavily regulated industry. If any institution were operating outside the confines and ignoring regulations, there would be some large and costly penalties against them. I don’t think we’d see them operating much longer.”

Joel Johnson

Scott Lewis

both parties are kept safe. Washington Federal managed to stay in the black during the recession. “Washington Federal is different because of our commitment to the costumer,” Davis mentions. “There is enough property here for everybody now. We can learn from our history, there is no need to be nervous about the rising housing prices.”

CUSTOMERS FIRST Regulation and sanctions placed after the crash greatly influenced the way business is done today in the lending sector. CHANGING REQUIREMENTS Lewis noted that JPMorgan Chase is doing everything in its Mortgage and downpayment requirements are higher than they power to put the customer first and not the profits. FirstBank is were several years ago, says Johnson, while noting that the entire doing the same. industry is in a different position than it was 10 to 12 years ago. “We’ve always maintained a corporate mindset to do what’s He also notes that housing valuations are more accurate. right, not what’s most profitable,” Johnson says. “That’s Today, many banks are shifting their focus toward affordability. benefited us immensely. I believe these regulations, to some Instead of profiting off of those who could not afford their homes extent, are shaping the industry’s perception and shifting it to a like in the past, the loan industry is looking to make purchasing similar stance.” and owning a home a relatively stress-free part of life. Johnson says banks are now training employees to focus on JPMorgan Chase bank is setting aside a $50 billion Consumer Financial Protection Bureau (CFPB) laws that are intended commitment for families for the next five years to help people to operate in the customer’s best interest and provide more clear and enter the housing market successfully. The bank also offers home transparent information. This may help banks enhance and grow buyer consulting classes. relationships with customers, while regaining consumer trust. According to Scott Lewis, senior lending manager at Chase, “Regulations will always be a part of our business and industry. the bank already has 97 home lending advisors in Arizona and We take them very seriously, and while I don’t think this will is hiring 500 more nationally. This is extremely significant stop banks, it may help them amplify their compliance culture considering JPMorgan Chase is the second-largest bank in Arizona and strengthen regulation implementation efforts.” he says. with more than $24 billion in deposits. In Arizona, the bank serves With the stock market having some wild swings to start the more than 3.1 million people and 300,000 business customers. year, it’s uncertain whether this will impact the growing housing Nowadays, it’s more difficult to buy a home even though the market in Phoenix. In reality, time will be the only revealer of market is in amazing shape. With updated technology, people are able when the market subsides. to price homes fairly, so new homeowners don’t get treated unfairly. “No one has a crystal ball, and unfortunately that’s a hard Paris Davis, senior vice president and Northwest Arizona Retail thing to predict,” Johnson says. “But for the most part, we believe Division manager for Washington Federal, says that, “Our due 2018 will likely be another strong year for real estate in Arizona. diligence is for everybody to achieve their dreams.” Will 2019 be just as strong? We don’t know.” says Johnson. Interestingly, Washington Federal is what is called a “portfolio But one thing is certain: Lending professionals are being lender.” When Washington Federal takes on a loan, they do not careful to not repeat the mistakes that were made almost a decade put it in a mortgage bond. Instead, they keep the loan safe within ago and making sure Arizona continues to be a comfortable and their grasp, so if something were to happen within the market, affordable place for people to purchase a home. 26

AB | March - April 2018

The Many ï¬&#x201A;FLavors of AZ Big Media

azBIGmedia.com

EAST VALLEY GLOBAL BUSINESS UPDATE

BUSINESS WITHOUT

BORDERS By JESSE A. MILLARD

tâ&#x20AC;&#x2122;s 2018 and easier than ever to take your business beyond U.S. borders and into the global marketplace. The global banking system is there to help with any transaction, free trade is allowing goods to fly across borders and the Internet allows us to be anywhere, anytime. Still, despite these tools and resources, many business leaders still have trouble finding the right guide to help them grow their business internationally. Thankfully, Metro Phoenix is a hub for global connections. The Global Chamber, a growing network of cities tethering the Greater Phoenix region to places like Mexico City, Johannesburg, Madrid and Tokyo is headquartered inside SkySong, The ASU Scottsdale Innovation Center. Global Chamber acts as a connector for businesses across the globe that are looking to expand beyond their homeland borders. In this global world and economy, the Global Chamber has been very busy. Doug Bruhnke founded Global Chamber three years ago with

AB | March - April 2018

the goal of connecting 525 metro areas together to help community business leaders find success in global marketplaces. In just three years, Global Chamber has grown into more than 200 cities, Bruhnke says. EXPANDING HORIZONS Bruhnke has always been something of an international connector. He worked in international marketing and sales at DuPont for 19 years and went on to work on the international side of things for a string of big league companies, including General Motors, Johnson & Johnson and Microsoft. Often, Bruhnke would be one of the few, if not only, advocates for expanding the business into global marketplaces. Eventually, Bruhnke would host monthly meetings, where business leaders would get together to talk about their global efforts. He quickly saw a growing demand for help in the global marketplace.

GLOBAL TRADE

BY THE NUMBERS Arizona exports helped contribute $2.21 trillion of U.S. goods and services exported in 2016. 7,566 companies exported from Arizona locations in 2014 There were 6,663 small and medium-sized goods exporters in Arizona in 2014 101,570 U.S. jobs were supported by goods exports from Arizona in 2015

Metro Phoenix organizations lay the groundwork needed to help your company become a player in the global economy

$8.323 billion worth of exports went from Arizona to Mexico $2.075 billion worth of exports went from Arizona to Canada $1.306 billion worth of exports went from Arizona to Korea $1.211 billion worth of exports went from Arizona to China $858 million worth of exports went from Arizona to United Kingdom Source: International Trade Administration

A few years ago, Bruhnke says the biggest issue for companies was finding out which markets they could go in to and who would support the company. There wasn’t the broad knowledge about going global then as there is now, he adds. “This is important because 85 percent of opportunities in the world, business opportunities, are outside the U.S. In the 1950s, most of the business opportunity was in the U.S., so you could be U.S.-centric,” Bruhnke says. “Now, nearly everything is outside the U.S. and so it’s just more important that people go global.” In 2016, the United States’ Gross Domestic Product by purchasing power parity ranked second in the world, behind China, according to the World Bank. The U.S. accounted for 15 percent of the world GDP by purchasing power, leaving 85 percent of the world’s GDP by purchasing power outside of the U.S., and an entire world of opportunity out there.

While Bruhnke is the founder and CEO of Global Chamber, he is also the executive director of Global Chamber Phoenix and is the point-man for helping local businesses go global. With so many opportunities out there, it can still be a struggle finding the right partners who can help you land a deal. Bruhnke often works with companies that are “accidental exporters,” or firms that have some level of global operations but aren’t going all in with their global efforts. Firms that come to Bruhnke tend to run into a few issues that present a lot of risk for the business, and Bruhnke is there to help those companies along, and hopefully lower the risk in the process. LOOKING FOR HELP Companies tend to come to Bruhnke for three things: Help finding customers Help finding partners, whether it’s in sales or logistics AB | March - April 2018 29

GLOBAL BUSINESS

Joel Barthelemy

Doug Bruhnke

Help with finding a resource the company needs, such a legal expert in another country The biggest barrier keeping local businesses from going global is that they don’t have a connection in the countries in which they wish to do business, Bruhnke says. A business might know someone in one part of Europe, but no one else in the region who could help the business grow. “It’s building that network out, it’s the most important thing. That’s really what the Global Chamber is all about,” Bruhnke says. Members in the Global Chamber then have connections in hundreds of member cities, he says. Local businesses won’t be so alone in their global efforts once they’re part of a growing global network like the Global Chamber, which starts by asking questions when working with a company.

EXPORT CHALLENGES

The Metro Phoenix Export Alliance hosts two programs that work to help local businesses that are working towards a global future. • Export Explore is a two-part program that trains 20 companies on everything they need to know about exporting, says Ruth Soberanes, director of trade and investment at the Greater Phoenix Economic Council. Then, the companies participate in a pitch competition, where six companies are offered a $4,000 grant in addition to 20 hours of in-kind services, like financial and legal help. • There’s also the Export Challenge, which is a public event where local companies pitch their export plans for a chance to win $25,000, $15,000 and $10,000. “In addition to the actual grant, (participants) have the opportunity to get exposure to meet their peers, meet those resources, those key experts in this area that can really help them jumpstart their exports,” Soberanes says.

AB | March - April 2018

Chris Camacho

Jeanine Jerkovic

Bruhnke looks to identify the state of readiness for a business by seeing if it’s well-established in the U.S. already. He’ll also examine the firm’s distribution channels, along with the banking structure and international protections of the business’ products. Bruhnke will guide companies to the right local resource who can help those businesses eventually go outside the U.S. border. PREPARING TO GROW Michael Patterson, a Polsinelli shareholder who works with businesses that are expanding globally, recommends that businesses should really do their due diligence when it comes to global matters. Finding the right partner, making sure they have a good reputation and examining how much they’ve penetrated the global market are all key things to examine, Patterson says. And be familiar with local laws, especially ones that may favor distributors, he adds. “Don’t be the only person in Mexico to find out that if you don’t have two entities, you’ve got to do profit sharing and now you’re at a disadvantage with all your competitors,” Patterson says. “Going global is not good or bad, it’s just different.” Patterson says that with time and good preparation around tax structures and sourcing the right partners, businesses could be well-prepared before they expand internationally. Your firm may not have to hire whole departments or teams, he mentions. Current employees at the firms could be equipped to lead global efforts with a little bit of training. Going global may sound like a scary process, but there could be a lot of positives to expanding internationally. Your company may have many competitors here in the U.S. squeezing profit margins, but outside the country, there could be a market with high demand and no competition, Patterson says. Patterson stresses that the world is going global at a rapid pace. Barriers that once existed are disappearing as folks use tools to connect with international marketplaces and become more aware, he says. “The question of whether you go global or not, we’re beyond that now,” Patterson says.

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GLOBAL BUSINESS

Michael Patterson

Ariel Picker

CHANGING THE MINDSET About three years ago, while the Greater Phoenix Economic Council was looking inward at the region’s economy, it found that innovation, exports and entrepreneurship have been defining sustainable economies, says Chris Camacho, president and CEO of GPEC. Culturally, exports haven’t always been the talk of the town for local businesses, so it was time to go to work. Metro Phoenix Export Alliance (MPEXA) was founded to help bring exports front of mind for businesses. The group was founded as part of the Velocity Program and funded by J.P. Morgan Chase. “We created this kind of grassroots, bottom-up approach to help small business export their product,” says Camacho, who is the vice chairman of the Metro Phoenix Export Alliance. “Exporting is one of the pillars that we’ve talked about as part of growing the regional economy.” MPEXA consists of public and private leaders leveraging resources that already exist, such as the work being done at groups like the U.S. Commercial Service and Arizona Commerce Authority, and bringing them to local businesses, Camacho says. MPEXA leads by hosting challenges where businesses can learn the ins and outs of exporting, raise money and connect businesses with advisors in the Phoenix region who are familiar with supply chains and exports. “We’re already seeing the culture on exports change,” Camacho says. Exports are now in the conversation among leaders, just like how innovation and finding more startup capital are part of local conversations, he says. “That’s what we’re hoping for, that it becomes a cultural change around the recognition that exports matter,” Camacho adds. EYES SET ON THE GLOBE Ever since Joel E. Barthelemy founded his telemedicine company, GlobalMed, in 2002, he believed his technologies would 32

AB | March - April 2018

Mark Roberts

Ruth Soberanes

be used globally. The medtech industry can be a challenging one, especially when it comes to getting technology certified by international and global groups. Barthelemy was up to the challenge, because he believed good healthcare isn’t just needed in the U.S., it’s needed everywhere. These principles can be applied to any industry. Even Barthelemy’s customers who are based in the U.S. — be it a mining or oil company or the Department of Defense — have international operations. So, Barthelemy built his systems to transcend borders, just like the customers. As a result, GlobalMed is in 55 countries, with installations in more than 30 countries, he says.

MAKE WAY TO MEXICO

The Phoenix-Mesa Gateway Airport will be the home to the nation’s first international air cargo hub to house both Mexican and United States Customs. The hub, dubbed SkyBridge Arizona, will allow manufacturers and e-commerce companies quickly and easily export items into Mexico by having customs clear the cargo planes before they take-off the runway. “SkyBridge will truly change the way we conduct cross-border business, slashing delivery times for companies and ensuring safe transit,” said SkyBridge CEO Ariel Picker in a statement.

“I think to not be global minded, on the distribution of your products, is short-sighted,” — Joel Barthelemy

“I think to not be global minded, on the distribution of your products, is short-sighted,” Barthelemy says. Europe and the U.S. are older and smaller markets compared with the rest of the world, Barthelemy says. Places like China, India and beyond make up most of the world’s population, and those regions and the growing populaces within them are all potential customers. One challenge that exists in the global realm is getting paid. Working with a bank that can enable international wire payments through the Society for Worldwide Interbank Financial Telecommunication, otherwise known as SWIFT, is crucial to finding success overseas. Local banks like the Alliance Bank of Arizona can facilitate international transactions, as well as provide exporters with lines of credit, which can be tough to come by, says Mark Roberts, senior commercial loan officer at Alliance Bank. Foreign accounts receivable are ineligible for advances on a line of credit, Roberts says. That puts exporters in a “precarious situation,” he adds. Banks like Alliance Bank are members of the ExportImport Bank of the United States, which allows Alliance to give exporters lines of credit, so those businesses can grow, Roberts says. Roberts says many banks don’t understand what it takes to go global, especially when it comes to facilitating relationships between international banks to guarantee payments through letters of credit. UNDERSTANDING ISSUES With these types of local resources and groups like the Global Chamber and the Metro Phoenix Export Alliance, exporting and expanding the business is easier than ever. When local firms like GlobalMed had issues or concerns abroad or wanted to open new markets, Barthelemy called Bruhnke at the Global Chamber, who made the right introductions.

“I feel it is extremely beneficial to have such an entity right here in Phoenix,” Barthelemy says. Jeanine Jerkovic, economic development director for the City of Surprise, is the board secretary of the Metro Phoenix Export Alliance and has seen how businesses believe that going global is a daunting task. Surprise was recently named Global City of the Year by the Global Chamber of Phoenix. Local firms, especially in the early days, can be so busy making sure the business gets off the ground that the business doesn’t fully evaluate the huge, positive impact a new market can bring to the firm, she says. They’ll view it as complicated resource drain, she says. Yet, going global is still something to be looked at and groups like MPEXA help connect companies with the resources to bring them into the global marketplace. These groups don’t guarantee success in the global marketplace, but as Camacho says, they’re here to “de-risk” the prospect of entering a global marketplace. “I think it’s important for those companies that are really hitting their stride, to continue to stretch their potential and continue to look at the global market,” says Jerkovic, whose city has attracted global entities like Ottawa University and IRIS USA, a Japanese plastics manufacturer. “Going global is a tremendous pathway to success for companies reaching a certain point in their growth cycle.”

LEARN MORE

Global Chamber Phoenix: phoenix.globalchamber.org Metro Phoenix Export Alliance: mpexa.com

AB | March - April 2018 33

TECHNOLOGY

GLOBAL EXPANSION:

Arizona’s natural next step A

rizona has become one of the nation’s largest players in technology over the past 10 years. Legislative incentives aimed at fostering the growth of Arizona’s technology sector, top university programs and a strong sense of community have enabled our state to become an attractive place for technology companies to both establish operations and relocate. However, as we transform into one of America’s most successful technology hubs, it’s equally important to continue Arizona’s expansion in international business and consider all of our untapped potential to do so. Arizona technology companies are more

Steven G. Zylstra Technology

AB | March - April 2018

than ready to make strides beyond the U.S. as our state excels in a wide array of technology sectors with prominent international markets. These include the Internet of Things and financial technology (Fintech). According to Accenture, Fintech is especially prominent, as more than $50 billion has been invested in these types of companies globally since 2010. Add to this Gartner’s estimate that approximately 8.4 billion “things” were connected in 2017. These industries along with aerospace and defense, software, optics, medical technology and many others have immense potential to thrive internationally. However, facilitating global trade comes with a unique set of challenges, including understanding export

regulations, developing international business plans and funding additional expenses. All of this might seem daunting at first, especially for small businesses that comprise 98 percent of Arizona companies. Fortunately, the state possesses incredible resources to aid in the expansion process, allowing our entrance into global markets to be executed more seamlessly. Several organizations are working diligently to facilitate the exportation of products. For example, the State Trade Expansion Program (STEP) of the Arizona Commerce Authority (ACA) helps Arizona small businesses advance into international

markets and expand overseas in additional verticals. STEP offers small technology businesses a plethora of resources, including export readiness assessments, assistance with website localization and translation, search engine optimization, and opportunities to participate in trade missions, summits and expos. ACA also offers Arizona companies its ExporTech export boot camp to help develop individualized strategic and proactive export plans to target highopportunity export markets for products or services, says Kevin O’Shea, ACA’s vice president, international trade. For new-to-export technology companies, ACA’s export assistance programming converts first-time or reactive exporters into proactive, intentional exporters. For technology companies already exporting, ACA’s programming provides resources and assistance for companies to strategically expand into new markets. O’Shea can be contacted at kevino@azcommerce.com to learn more about STEP and ExporTech. Additionally, local businesses can leverage the Metropolitan Phoenix Export Alliance (MPEXA). This organization was established to promote and advocate for

international trade by simplifying the export process for businesses. MPEXA succeeds at doing so by cultivating business sectors that align with expanding international markets. Like the STEP program, MPEXA provides export training to local businesses while also engaging top leaders and export service providers. MPEXA holds export competitions to help businesses pitch and refine trade strategies. Ruth Soberanes, the Greater Phoenix Economic Council’s director of trade and investment, can be reached at rsoberanes@ gpec.org to learn more about MPEXA. Not only is the Arizona Technology Council working diligently for the continuation of the North American Free Trade Agreement (NAFTA) but our state as a whole is the nation’s largest beneficiary of the accord. While this agreement easily can be taken for granted, it has several assets for Arizona’s technology economy, most notably its elimination of tariffs on imports and exports between the U.S., Canada and Mexico. Although NAFTA components such as intellectual property and cross-border data should be upgraded to reflect advancements in technology, this agreement remains crucial. Approximately 90 percent of the market for technological goods and

services exists outside our borders. We’ve also been collaborating with Mexico to scope out additional international trade opportunities for our members. In addition to our work with Mexico, the Council has been serving as an intermediary between Arizona businesses and international companies by participating in several trade missions to China, as well as meeting with the ambassador of the Netherlands to foster connections between Dutch and U.S. companies. The Council along with the Arizona Export Council’s Trade Policy & Legislative Affairs Committee are working with Arizona State University to host a national trade event. This event will bring top speakers and resources from across the country to encourage high-level discussions about trade and immigration reform. While all of this can be a great deal to consider, Arizona can profit tremendously from expanding into global business landscapes. Such benefits include moving into potentially untapped markets, and gaining additional exposure, access to new talent and investment opportunities. Our booming technology economy along with the help of local organizations dedicated to Arizona’s continued growth provide a firm foundation for Arizona to become an international technology powerhouse. Steven G. Zylstra is president and CEO of the Arizona Technology Council.

AB | March - April 2018 35

EAST VALLEY MINORITY INFLUENTIAL UPDATE BUSINESS LEADERS

POWER Black Board of Directors Project works to create diverse leadership in Arizona

AB | March - April April 2018 2018

MOVE By RACHEL GETTINGER

O BLACK BOARD OF DIRECTORS PROJECT THE MISSION: The Black Board of Directors Project (BBODP), an advanced leadership program, was started in Phoenix in 1984 to fill the void of blacks and others on various corporate, charitable and public policy-making boards and commissions at the local, state and national levels and other leadership positions. ACCOMPLISHMENTS: In the organization’s 34-year history, BBODP has placed more than 2,000 blacks and other minorities on various boards and commissions. LEARN MORE: bbodproject.com

ne Phoenix-based organization, The Black Board of Directors Project, has been working for nearly 35 years to advance society by adding diversity to policy-making positions in the nonprofit arena and private and public sectors. “We found that there is a paucity of diversity on a lot of boards and commissions and that is because the number of people known out there is very thin,” said Marvin Perry, the founder of the organization. Perry said this became his motive behind founding the group in 1984. Perry assembled the Black Board of Directors Project because he felt there was not a group focused on getting members interested and active while still assisting in the overall advancement of society. AB AB| |March March--April April 2018 2018 37

MINORITY LEADERSHIP Boards of directors in the U.S. are not known for their diversity. The “Missing Pieces Report: The 2016 Board Diversity Census of Women and Minorities on Fortune 500 Boards” noted that there were only 784 minority board members in 2016 out of the 5,440 total board seats within the Fortune 500. This was a 12 percent increase from 2010. In the early 1970s, immediately after Perry had moved to Omaha, Nebraska to take a banking position, he joined the Urban Chamber of Commerce. Perry then sold them on the idea of getting their members involved in civic affairs to promote their businesses while enhancing society. “Later in the decade I moved to Phoenix and tried unsuccessfully to sell the black leaders of the day on such an initiative,” Perry said. “It was in the 1980s when a black corporate attorney advised me that the black leaders in Arizona were not able to appreciate what I was promoting. Thus, I had to do it myself.” Finally, in October 1983, the Black Board of Directors Project held its first event in which they presented their first 30 members. Today, the Black Board of Directors Project has helped over 850 people advance their careers through locating and engaging its members in adequate board positions. “Members who go through the program—we’ve had so many success stories. And there are individuals who start with us and then go on to engage in various boards across the country,” said Perry. Today, the Black Board of Directors Project identifies boards for its members to participate in and connects its members through networking, conferences and meetings. The goal is to help advance all people in their careers as well as gain a better understanding of their communities. “I think there are special barriers to folks who are not traditionally part of the power structure, and the organization is sensitive to that fact,” said Christopher Houk, a long-time member of the organization. Houk said he was drawn to the Black Board of Directors Project because it offers an all-inclusive and open environment where members can express their pride for their origins. 38

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INFLUENTIAL MINORITY BUSINESS LEADERS JASON BARRAZA | Senior associate director | Veridus Since joining Veridus in 2009, in addition to lobbying, Barraza assists in the development of political advocacy plans that include political campaigns, polling, and community outreach. He is chairman of the board of Leading for Change, a nonpartisan, political leadership training organization; president of Los Abogados, the Arizona Hispanic Bar Association; and is an appointed member of the Legislative and Government Affairs Committee of the Hispanic National Bar Association. LATASHA CAUSEY | Executive administrative director | USAA Causey is responsible for strengthening USAA’s brand in the Phoenix market and leads local philanthropic efforts through creating a strong community outreach program to make differences within the Phoenix community. Causey is a culture leader and development advocate for more than 4,000 employees within the Phoenix USAA campus. This year, her team created 10,000 hours of volunteer opportunities for employees with a focus on connecting them to the causes they care most about. ALANA CHÁVEZ LANGDON | Senior community affairs representative | APS Chávez Langdon has 20 years of experience in community affairs, government relations, public administration, regulatory and legislative policy, economic and infrastructure development, grassroots outreach and international affairs. For APS, she implements community outreach strategies targeted at multicultural markets. Chávez Langdon was Arizona State University’s homecoming queen in 1996 and now helps drive Arizona’s economy through volunteer work with the Metro Phoenix Export Alliance and Phoenix Committee on Foreign Relations. REY CHU | Co-owner and director | PADT Chu is co-owner and director of Phoenix Analysis & Design Technologies (PADT), the Southwest’s largest provider of simulation, product development and 3D printing services and products. Chu’s company was recently recognized as one of the “Best Entrepreneurial Companies in America” by Entrepreneur magazine’s Entrepreneur360 List. Based on this study forged by Entrepreneur, PADT is recognized as a well-rounded company that has mastered a balance of impact, innovation, growth and leadership. HERMAN EDWARDS | Head football coach | Arizona State University Former NFL head coach Herman Edwards became ASU’s 24th head football coach in December 2017 and promised to bring with him a “new leadership model” that will be similar to an NFL approach using a general manager structure. It’s a collaborative approach to managing the ASU football program that includes sport and administrative divisions, which will operate as distinct, but collective units focused on elevating all aspects of ASU football.

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MINORITY LEADERSHIP

“One of the important highlights of the group are that a lot of African Americans new to the Valley have a hard time finding each other or places where their expertise can be put to use,” said Kendra Hassan, a member of the Black Board of Directors Project. “And Marvin’s activity over that past couple decades of finding people and paying attention to their capabilities and then being able to link them to other organizations is such a useful service.” The organization works to strategically match its members’ interests with various boards’ needs. Perry plays an essential role in this process by listening to his members’ needs and connecting them with multiple boards until they’ve found a comfortable fit. “You’re looking for a nice board to be a part of, and there’s so many options, but we all have our own passions and loves,” Houk said. “Luckily, there are so many boards available through the Black Board of Directors, whether that be civic organizations, government board, boards that help with the poor, or boards that help with art. There is something that everyone will find completely rewarding.” The organization runs forums and meetings on an on-going basis, with types of events varying from luncheons and breakfast meetings to retreats and cultural events. At a typical luncheon or breakfast meeting, there will be a credible speaker who engages in intellectual discussion. These speakers have included Judge Andrew Horwitz of the Ninth Circuit Court, NPR Newscaster Korva Coleman, Sen. John McCain, Ambassador Sharon Wilkinson, United Nations Ambassador Francis Deng, top level corporate executives, mayors, authors and scholars from major universities throughout the nation. These events are an opportunity for members to engage in conversation, make connections and get in contact with boards and commissions. “One of the things about our membership program is the importance, as an effective leader, to know your community and be known in your community,” said Perry. “That’s what we’re trying to do here.” 40

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INFLUENTIAL MINORITY BUSINESS LEADERS KARL GENTLES | Partner | Goode Wright Gentles Combining more than 25 years of expertise in public relations and communications with a passion for philanthropy and social responsibility, Gentles is relentless about helping companies create an identity infused with their mission and culture highlighting their distinct qualities. Gentles serves as public policy chair of the Greater Phoenix Black Chamber of Commerce, board and public policy member of the Alliance of Arizona Nonprofits and board member of Gamma Mu Educational Services. MARIA HARPER-MARINICK | Chancellor | Maricopa Community Colleges Harper-Marinick is a career educator and innovator with a deepseated commitment to inspiring lifelong education. Originally from the Dominican Republic, she is the first Latina — and first woman — appointed to chancellor at a higher education institution in Arizona. Harper-Marinick has helped shape the face of community college education through her involvement with Expect More Arizona, the Arizona Minority Education Policy Analysis Center and Arizona Business and Education Coalition. MINEA MOORE | Director of diversity and inclusion initiatives | Intel Moore oversees the strategic approach for inclusion and development of diverse suppliers within Intel’s worldwide supply chain, along with other diversity and inclusion initiatives. Moore is also the founder of K Serenity Natural Deodorant for Kids, a company that makes kid-friendly, all-natural deodorants that are made by kids, for kids. As an entrepreneur, Moore is a graduate of Seed Spot’s first African American Boot Camp. GIRISH RISHI | CEO | JDA Software Rishi became JDA’s CEO in 2017 after serving as executive vice president at Tyco International, responsible for the firm’s global retail solutions and North America building automation business, that together, generates more than $4 billion in annual revenue. He brings extensive general management experience in both emerging and established technology companies to JDA. He has led businesses that have delivered category-leading, mission-critical enterprise software offerings, mobility solutions and innovative vertical IoT applications. JESSICA S. SANCHEZ | Partner | Udall Shumway Sanchez focuses her practice primarily in the area of education law, representing school districts and charter schools throughout Arizona. She also counsels the Scottsdale Unified School District and the three Tempe School Districts. She has served as president of the Los Abogados Hispanic Bar Association and earned its Emerging Leader Award in 2013. In 2017, she earned the Hispanic National Bar Association’s Top Lawyer Under 40 Award.

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MARKETING

4 WAYS

BUSINESSES CAN OVERCOME THE NEW

FEED ALGORITHM

M Alexis Krisay Marketing

AB | March - April 2018

ark Zuckerberg recently announced some significant changes to Facebookâ&#x20AC;&#x2122;s news feed algorithm that will ultimately affect both users and businesses. With Facebook being one of the worldâ&#x20AC;&#x2122;s largest distributors for news and online ads, many companies that rely heavily on Facebook as their primary source of traffic will be hurt the most. The new algorithm is causing Facebook to change gears and go back to its initial purpose as a communication platform enhancing personal user experience.

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verall, the reason for this change was because Facebook’s executive team saw that news articles and marketing ads were creating an imbalance in the platform, drowning out all of the personal moments people had to share. With this change, Facebook recognizes that it cherishes user experience more than brands that pay it. What does this mean for a business? If a company wants to be able to drive traffic and attempt to engage its audience, it must do so by paying the price of advertising on the platform. Below are a few ways businesses can overcome the new Facebook news feed algorithm.

FACEBOOK LIVE AND VIDEO CONTENT

Live video took the world by storm in 2016, majorly changing the way brands engage with their audiences. According to streaming experts, 80 percent of brand audiences would rather watch a live video or video content rather than read an article or blog. Consumers prefer watching video content as they feel more engaged with the brand. With the new algorithm change, this can play in a company’s favor due to how Facebook values video content over ads, news posts, etc. as a video is more personal to the user.

CREATE A COMMUNITY THROUGH FACEBOOK

Facebook provides a service where businesses can create Facebook Groups that are built around a particular community that cater to a specific audience. Companies can utilize these pages by posting content that is guaranteed to reach an audience due to how people have to opt into the group on their own. Additionally, this is a great way to track what content is working for the audience based on the engagement performance of the group page.

SHAREABLE CONTENT IS KEY

If a user enjoys a video, photo, article, etc. they are likely to share that content with their network - allowing the post to reach a larger audience. Considering Facebook is pushing for user experience over ads and news placements, this is a great way for businesses to think outside-the-box and get creative to engage with its targeted audience. Additionally, Facebook favors shares over likes so if a post has a high engagement in shares, it’s more likely to have a lot more success compared to a post with a lot of likes.

BUDGET FOR PAY-TO-PLAY

Facebook has always been a pay-to-play platform, however, with the new algorithm change, it will be vital for businesses to budget more money to put behind their content. Companies can expect a drastic decline in organic reach. Overall, whether you advertise your material or not, it’s more important than ever to create and share content that will resonate with your Facebook audience. By engaging with your audience via asking questions, telling compelling stories, providing valuable insights, producing authentic, raw visuals through photos and videos, etc., businesses will have the ability to drive stronger results. Ultimately, Facebook has made it harder for businesses of all shapes and sizes to market and advertise their brand on the social platform. With user experience being more important than ever, it’s essential brands understand that it’s not competing with other businesses, they’re competing with personal moments shared through friends and family. Alexis Krisay is a partner and president of marketing for Serendipit Consulting, a public relations, marketing, branding and event-planning firm with a specialization in franchise, real estate, healthcare, fitness and wellness. AB | March - April 2018 43

DINING

You’ll Gladly return

Chef Bernie Kantak outdoes himself with his latest must-try dining experience

By MICHAEL GOSSIE

ometimes, coming in second makes you a winner. That is definitely the case for The Gladly, Chef Bernie Kantak’s followup restaurant to his uber-popular Citizen Public House in Scottsdale. Kantak takes everything that makes Citizen Public House a must-try dining destination and tweaks the formula just enough to outdo himself. The Gladly first opened along the Camelback Corridor in 2013 and serves lunch, dinner and arguably the best happy hour in the Biltmore area. Kantak has utilized his experience, travels and unrivaled palate to create a unique and extraordinary menu that is infused with intriguing innovation. To complement the menu, The Gladly’s bar is stocked with more than 250 whiskies and inventive cocktails, plus crafted ice balls that are made right at the table to create an even more extraordinary drinking and dining experience. Also enhancing the culinary experience is The Glady’s hip, style-forward atmosphere with dramatic high ceilings and modern design elements. The Gladly has the spirit and vibe of a big-city hot spot, but with a level of comfort that makes it the ideal place for a date, business dinner or night out with friends. And if you want to celebrate a special occasion or host a corporate event, groups can choose between a 30-seat semiprivate mezzanine level dining room or a private banquet room with enough seating for up to 60 guests.

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But what makes The Gladly stand out from all the other wannabe hot spots is the food. There isn’t a misfire on menu. Some standouts include: • Brown Butter Tuna ($18): Served with a lime vinaigrette and raisin relish, this dish from Donald Hawk’s raw bar is the ideal way to start a delightful dining experience. When it hits your tongue, you conjure thoughts of cotton candy because that’s how the tuna melts in your mouth. • The Original Chopped Salad ($14): You know you’re in for a treat when the salad you’re about to devour has its own Facebook page, and rightfully so. This salad could be the world’s best and no visit to a Kantak restaurant would be complete without it. • Duck Meatloaf ($48): Get past the peasant name and dig in to this deliciousness. Served with rosemary millet, foie gras mousse and smoked cherry demi-glace, this dish is so packed with imagination and flavor that you’ll never think of meatloaf the same way again.

• Pan Seared Scallops ($32): How can you go wrong when you use Coca-Cola as an ingredient? Served with sweet corn grits, tender belly bacon lardon, sautéed snow pea greens and a Coca-Cola gastrique, these scallops give the Brown Butter Tuna a run for its money in the melt-in-yourmouth department. • Grilled Filet Mignon ($45): This dish is always cooked to perfection, served with smashed Yukon Gold potatoes, grilled asparagus and topped with melted bone marrow butter. Are you kidding? Melted bone marrow butter? Yes, please. Fans of Kantak’s amazing cuisine will love The Gladly. Each dish on the menu will blow you away and the service is both exceptional and authoritative. Will you want to go back again and again? Gladly. The Gladly 2201 E. Camelback Rd. Phoenix, AZ 85016 602-759-8132 Information: thegladly.com

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602.277.6045 AB | March - April 2018 45

2018 By MICHAEL GOSSIE

f you’re wondering what it takes to be one of the Top 100 Lawyers in Arizona, why not ask an attorney who has shaped the legal landscape in Arizona for more than 40 years? “Practicing law is a challenging, honorable profession,” says Mike Kennedy, founding partner of Gallagher & Kennedy, which is celebrating its 40th year in business in 2018. “You only have one reputation. Hard work performed with the utmost integrity will earn respect from judicial officers and your colleagues and opponents, while at the same time reinforcing your personal respect for the law and judicial process.” Kennedy is among this year’s Top 100 Lawyers in Arizona, which are chosen by Az Business magazine’s editorial team in collaboration with industry experts. The attorneys were selected from a pool of more nearly 2,000 of the state’s most talented and successful attorneys. Selections are based on each lawyer’s professional success and ratings, impact on his or her law firm, impact on the communities she/he serves and impact on the legal profession. Do you know an attorney who should be considered for the 2019 list? Email Editor in Chief Michael Gossie at michael.gossie@azbigmedia.com.

AB | March - April 2018

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2 6 1 ANDREW ABRAHAM Shareholder Burch & Cracchiolo PRACTICE AREAS: Real estate law, real estate litigation, business and corporate law, commercial litigation

2 SHAWN K. AIKEN Shareholder Aiken Schenk Hawkins & Ricciardi PRACTICE AREAS: Commercial litigation, mediation, arbitration

6 MAUREEN BEYERS Member Beyers Farrell PRACTICE AREAS: Contract and business tort disputes

3 CYNTHIA C. ALBRACHT-CROGAN Partner Cohen Dowd Quigley PRACTICE AREA: Business litigation

7 NEAL H. BOOKSPAN Shareholder Jaburg | Wilk PRACTICE AREAS: Bankruptcy, construction law, corporate transactions, creditors’ rights

4 HILARY L. BARNES Member Allen Barnes & Jones PRACTICE AREAS: Commercial bankruptcy, creditors’ rights, bankruptcy litigation 5 STEVEN N. BERGER Shareholder Engelman Berger PRACTICE AREAS: Bankruptcy and reorganization, creditors’ rights, loan workouts, business restructurings, business and real estate disputes, business and real estate transactions, mediation

ARI BAI

8 TIM BROWN Shareholder Gallagher & Kennedy PRACTICE AREAS: Tax law, business law and transactions 9 ROBERT J. BRUNO Shareholder and director Sanders & Parks PRACTICE AREAS: Complex civil litigation, construction litigation, professional liability defense, products liability

Shareholder | Polsinelli

PRACTICE AREAS: Intellectual property, international, life sciences, medical devices, patent prosecution, trademark and copyright BACKGROUND: Bai is an intellectual property and patent prosecution attorney. He has

extensive experience protecting client products in the mechanical, electrical and computer industries. Ari previously worked as a patent examiner for the U.S. Patent and Trademark Office in Washington, D.C. ADVICE: “The best advice I can give to young patent attorneys is to understand

your client’s business, especially the technology that drives their business. In this way, you can provide legal strategies to the client on what inventions need to be protected to expand their market share.” AWAY FROM WORK: “I love to play golf. I have always felt that there was something

therapeutic about hitting a little white ball that provides a calming effect. It’s also a game that rewards consistency — an attribute that has helped me in my patent practice.”

TOP 100 LAWYERS IN AZ 2018

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1 C. ADAM BUCK Partner | Radix Law PRACTICE AREAS: Business law, commercial litigation, estate planning, real estate law 2 ROBIN E. BURGESS Shareholder, officer and director | Sanders & Parks PRACTICE AREAS: Healthcare, medical malpractice, product liability, professional liability, municipal liability

3 REBECCA LYNNE BURNHAM Shareholder | Greenberg Traurig PRACTICE AREAS: Real estate, economic development initiatives, land development, infrastructure finance 4 JEFFREY J. CAMPBELL Of counsel | Campbell Yost Clare & Norell PRACTICE AREAS: Medical malpractice, general insurance defense 5 ANNE CHAPMAN Attorney | Mitchell | Stein | Carey | Chapman PRACTICE AREA: White-collar criminal defense

6 ELIZABETH S. CHATHAM Partner | Stinson Leonard Street PRACTICE AREA: Business immigration 7 ROBERT M. CHARLES, JR. Partner | Lewis Roca Rothgerber Christie PRACTICE AREAS: Business bankruptcy, commercial lawsuits, business transactions 8 PAUL K. CHARLTON Partner | Steptoe & Johnson PRACTICE AREAS: Complex litigation, internal investigations, white-collar criminal defense 9 DAVID D. CLEARY Shareholder | Greenberg Traurig PRACTICE AREAS: Restructuring and bankruptcy, aircraft and equipment finance

JOHN J. BOUMA Partner | Snell & Wilmer

PRACTICE AREAS: Complex commercial litigation, including antitrust, commercial and business

torts; professional malpractice defense; alternative dispute resolution BACKGROUND: Throughout more than five decades at Snell & Wilmer, Bouma has helped

influence economic development, public policy and cultural life across the firm’s geographic footprint. ADVICE: “Always be open to exploring new opportunities. Pay close attention

to what is going on around you, embrace the value and inevitable nature of change, and have the confidence to try the unexpected. Such an approach often leads to valuable experiences, new friends and both personal and professional growth.” DREAM DINNER: “I would dine with Theodore Roosevelt along the shores of

Lake Powell. I admire his energetic personality, significant achievements and response to personal hardships. As with Roosevelt, I am a lifelong nature and wildlife enthusiast. I would enjoy hearing his perspectives on a range of political, social and cultural issues.” 48

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TOP 100 LAWYERS IN AZ 2018 1 JOSEPH T. CLEES Shareholder | Ogletree Deakins PRACTICE AREAS: Labor and employment counseling, labor relations. employment law, litigation, trade secrets, unfair competition 2 JAMES R. CONDO Partner | Snell & Wilmer PRACTICE AREAS: Professional liability litigation, product liability litigation, commercial litigation

3 JOHN L. CONDREY Partner | Gordon & Rees PRACTICE AREAS: Construction, insurance, environmental/toxic tort, tort and product liability, employment law, professional liability defense, commercial litigation

4 JENNIFER CRANSTON Shareholder | Gallagher & Kennedy PRACTICE AREAS: Condemnation and valuation, insurance, public utilities 5 THOMAS H. CURZON Partner | Osborn Maledon PRACTICE AREAS: Outside general counsel, venture capital, mergers and acquisitions, corporate and securities

6 BARBARA J. DAWSON Partner | Snell & Wilmer PRACTICE AREAS: Class action litigation, commercial litigation, financial services litigation, international investigations and regulatory compliance, SEC reporting, corporate governance 7 WILLIAM M. DEMLONG Senior member | The Cavanagh Law Firm PRACTICE AREAS: Litigation, insurance coverage, bad faith litigation, products liability, personal injury

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8 JOHN E. DEWULF Partner | Coppersmith Brockelman PRACTICE AREAS: Commercial litigation 9 JASON DONKERSLEY Attorney | Berry Riddell PRACTICE AREAS: Real estate acquisition and development, leasing, joint ventures

D. LEWIS CLARK JR. Managing partner | Squire Patton Boggs

PRACTICE AREAS: Counseling and advocacy for both private and public sector employers in all types of labor and employment matters BACKGROUND: Clark is a trial lawyer who represents employers in a broad range of

employment litigation and administration matters throughout the United States that involve such issues as discrimination, harassment, retaliation, wage and hour law, employee benefits, employment contracts, defamation, employment intentional torts, wrongful discharge, unfair competition, trade secrets and unfair labor practices. SOURCE OF PRIDE: â&#x20AC;&#x153;Handling a dispute between a school district client and residents

who wanted to divide the district. The dispute lasted 12 years, involved a process that started at the administrative level and went all the way to the State Supreme Court and involved negotiation, policy issues, political persuasion, litigation and intense media and public attention. We ultimately prevailed, keeping the district intact, preserving the district both financially and culturally.â&#x20AC;? 50

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TOP 100 LAWYERS IN AZ 2018

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6 1 JOHN ALAN DORAN Member Sherman & Howard PRACTICE AREAS: Labor and employment, litigation, trials, appeals 2 DANIEL G. DOWD Partner and president Cohen Dowd Quigley PRACTICE AREAS: Business litigation 3 KIMBERLY FATICA Partner Coppersmith Brockelman PRACTICE AREAS: Employment law

4 JAY A. FRADKIN Member Jennings, Strouss & Salmon PRACTICE AREAS: Medical malpractice defense, products liability, personal injury and wrongful death litigation, insurance defense 5 NICOLE FRANCE STANTON Managing partner Quarles & Brady PRACTICE AREAS: Professional liability, litigation and dispute resolution, higher education, appellate 6 JONATHAN FRUTKIN Founder and principal Radix Law PRACTICE AREAS: Business law, commercial litigation

7 MARTIN R. GALBUT Managing partner Galbut & Galbut PRACTICE AREAS: Commercial litigation, securities litigation, corporate compliance law, corporate governance law, corporate law, antitrust litigation, banking and finance litigation 8 GARRICK L. GALLAGHER Owner and director Sanders & Parks PRACTICE AREAS: Complex civil litigation, insurance bad faith, insurance coverage, insurance coverage litigation 9 KAREN S. GAYLORD Partner Jennings Haug & Cunningham PRACTICE AREAS: Environmental and natural resources matters

SUSAN M. FREEMAN Partner | Lewis Roca Rothgerber Christie

PRACTICE AREAS: Appeals, bankruptcy and creditors’ rights, distressed real estate

acquisition and management Background: In 2017, Freeman became chair of the American Bar Association Business Bankruptcy Committee, the largest organization of bankruptcy lawyers. She also serves as president of the American Academy of Appellate Lawyers and is secretary of the American College of Bankruptcy. SOURCE OF PRIDE: “I persuaded the United States Supreme Court to consider

my pro bono client’s case and briefed and argued to the Court. Although I lost 5-4 on a sticky interpretation of the Internal Revenue Code and Bankruptcy Code, I helped the Court understand the nuances of the case and rule in a way that avoided the serious consequences of the lower court decisions.” ADVICE: “Listen to your clients and to opposing parties and the judge to

ascertain their real concerns. With that information, you can figure out a way to accomplish your client’s goals.” 52

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TOP 100 LAWYERS IN AZ 2018 1 STACEY F. GOTTLIEB Of counsel | Cohen Dowd Quigley PRACTICE AREAS: Complex commercial litigation, white-collar criminal defense 2 ANDREW F. HALABY Partner | Snell & Wilmer PRACTICE AREAS: Intellectual property and technology litigation

3 DIANE M. HALLER Partner | Quarles & Brady PRACTICE AREAS: Real estate, highly complex transactions, land development deals, portfolio transactions 1 5

4 ANGELA K. HALLIER Founding partner | Hallier Lawrence PRACTICE AREAS: Divorce and family law matters, including litigation, mediation, collaborative divorce and arbitration 5 MICHAEL J. HOLDEN Managing member | Holden Willits PRACTICE AREAS: Construction law, construction litigation, commercial litigation

4 8

6 KAMI M. HOSKINS Partner | Gordon & Rees PRACTICE AREAS: Labor and employment, bankruptcy 7 JON HULTGREN Partner | Hammerman & Hultgren PRACTICE AREAS: Insurance subrogation and collections, including commercial and retail claims

8 TIMOTHY R. HYLAND Senior member | The Cavanagh Law Firm PRACTICE AREAS: Appellate; insurance bad faith; insurance coverage; tort and personal injury defense; commercial litigation; professional liability defense; life, health and disability insurance 9 CHRISTOPHER B. INGLE Shareholder | May Potenza Baran & Gillespie PRACTICE AREAS: Commercial litigation, intellectual property, technology and cyberlaw, construction law, appellate advocacy

AZIM Q. HAMEED Member | Sherman & Howard

PRACTICE AREAS: Real Estate, construction, business and corporate BACKGROUND: Hameed has more than 25 years’ experience representing

developers, publicly traded homebuilders, financial institutions, anchor tenants and investors in a variety of commercial, retail, and residential real estate matters. TREND TO WATCH: “Blockchain technology may permeate the business world.

The legal system will have to adapt. Blockchain technology may enhance accessibility to accurate and transparent business records and court filings. This may enable lawyers to provide accurate legal services more quickly.” ADVICE: “Remember who you represent: buyer or seller, borrower or lender, landlord or tenant. Then analyze, negotiate and draft from that point of view. Do so thoroughly, carefully and promptly. Be practical. Your client expects nothing less. Get involved in a professional organization and a community service organization. Those are places you will meet your future clients.” 54

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TOP 100 LAWYERS IN AZ 2018

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5 6 1 NORMA IZZO Member | Jennings, Strouss & Salmon PRACTICE AREAS: Family law and domestic relations, collaborative divorce, mediation and arbitration, litigation 2 STEPHEN E. JACKSON President | Warner Angle Hallam Jackson & Formanek PRACTICE AREAS: Construction law, civil litigation, mediation, arbitration, real estate and business transactions

9 3 KENDIS KEY MUSCHEID Partner | Ballard Spahr PRACTICE AREAS: Exempt organizations, private client services, healthcare

6 AMY L. LIEBERMAN Executive director | Insight Employment Mediation and Insight Mediation Group PRACTICE AREAS: Mediation and arbitration

4 JAY S. KRAMER Director | Fennemore Craig PRACTICE AREAS: Real estate transactions and finance, which includes acquisition, infrastructure financing, entitlements, development and sale, as well as loan workouts and restructuring

7 JOHN F. LOMAX, JR. Partner | Snell & Wilmer PRACTICE AREAS: Labor and employment, Native American affairs, energy and utilities

5 GORDON LEWIS Partner | Jones, Skelton & Hochuli PRACTICE AREAS: Educational institutions defense, employment law, governmental liability, medical liability and healthcare, professional liability

MIKE KENNEDY

8 MICHAEL C. MANNING Partner | Stinson Leonard Street PRACTICE AREAS: Business litigation, antitrust, governance, risk and compliance, real estate litigation 9 KAREN C. MCCONNELL Partner | Ballard Spahr PRACTICE AREAS: Mergers and acquisitions, private equity, securities and capital markets, emerging growth and venture capital, fashion Co-founder and shareholder | Gallagher & Kennedy

PRACTICE AREAS: Business litigation, professional liability, sports law

Background: Kennedy co-founded Gallagher & Kennedy, which is celebrating its 40th year in business in 2018. KEY TO 40 YEARS OF SUCCESS: “Understanding that the practice of law is a team

sport. From the beginning, we have been successful in attracting incredibly talented professionals willing to invest in the success of the team. During that time, many of our lawyers have earned the distinction of being the premier Arizona lawyer in their practice area.” SOURCE OF PRIDE: “Creating a Gallagher & Kennedy culture of community

involvement beyond the practice of law. My service as Super Bowl Chairman, Phoenix Open chairman, Diamondbacks Foundation president and chairman of the Thunderbird International Junior Golf Tournament for the past 20 years, Brophy/Xavier Regents, Greater Phoenix Leadership and 16 years of coaching baseball has helped establish Gallagher & Kennedy as a community leader.” 56

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CONGRATULATIONS on being named a top 100 lawyer by AzBusiness Magazine

Wilenchik & Bartness, an AV Rated Preeminent firm since its founding in 1991

when Dennis Wilenchik left a senior partnership at Squire Patton Boggs to form the ďŹ rm, is pleased to congratulate Dennis Wilenchik on being named a Top 100 Lawyer by AzBusiness and to further congratulate his son John D. (Jack) Wilenchik on being a Super Lawyer this year, as well. The ďŹ rm continues to provide aggressive, reasoned counsel to individuals and companies of all sizes in regard to complex federal, state and criminal litigations, and congratulates the other lawyers selected, as well.

2018

Dennis Wilenchik Attorney at Law The Wilenchik & Bartness Building 2810 North Third Street Phoenix, Arizona 85004

P 602-606-2810 | F 602-606-2811 www.wb-law.com | diw@wb-law.com

TOP 100 LAWYERS IN AZ 2018 1 MARK A. MCGINNIS Member | Salmon, Lewis & Weldon PRACTICE AREAS: Water law, natural resources law, energy and public utility law, environmental litigation 2 PAUL J. MCGOLDRICK Attorney | Shorall McGoldrick Brinkmann PRACTICE AREAS: Personal injury and insurance litigation, mediation and arbitration, commercial litigation 2

3 MICHAEL MCGRATH Partner | Mesch Clark Rothschild PRACTICE AREAS: Commercial bankruptcy representation, including acting as counsel to debtors, official committees of unsecured creditors, chapter 11 trustees and creditors

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4 PATRICK J. MCGRODER, III Shareholder | Gallagher & Kennedy PRACTICE AREAS: Plaintiff’s catastrophic personal injury and wrongful death, professional liability, aviation law 5 RONALD D. MERCALDO Founding partner | Mercaldo Law Firm PRACTICE AREAS: Medical malpractice, personal injury, wrongful death

7 6

6 CHARLES J. MUCHMORE Partner | Scott, Skelly & Muchmore PRACTICE AREAS: Alternative dispute resolution 7 DONALD L. MYLES, JR. Partner | Jones, Skelton & Hochuli PRACTICE AREAS: Bad faith and extra-contractual liability, insurance coverage and third-party liability, professional liability, wrongful death and personal injury defense 8 DANIEL J. NOBLITT Attorney | The Noblitt Group PRACTICE AREAS: Intellectual property and technology law, patents, trademarks, copyrights, trade secrets, licensing, litigation 9 PATRICIA E. NOLAN Member | Gammage & Burnham PRACTICE AREAS: Business organizations and commercial transactions, real estate, commercial lending

CHRISTINA NOYES Attorney | Gust Rosenfeld

PRACTICE AREAS: Franchise law, business law, trademark and copyright BACKGROUND: Noyes’ practice includes drafting agreements and analysis of franchise and

business opportunity laws, preparation and review of franchising agreements, offering circulars and registrations, as well as handling trademark registrations and renewals. She represents franchisees and franchisors and she been listed in the Franchise Law category of The Best Lawyers in America since 2009. TREND TO WATCH: “Work-life integration. Clients are shifting their work patterns

to working during nontraditional work hours in nontraditional places to accommodate their own outside work commitments. The expectation will be for greater connectivity between lawyers and clients, albeit on a more informal basis. Achieving this connectivity can be challenging because of the nuances in legal advice and the need for precision work product.” ADVICE: “You can’t do it all, so choose strategically and whatever you choose to do, do it well.” 58

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TOP 100 LAWYERS IN AZ 2018

2 1

7 6

1 JOHN C. NORLING Managing attorney | Jennings, Strouss & Salmon PRACTICE AREAS: Advertising, automotive dealerships, banking and financial institutions, commercial lending, corporate, mergers and acquisitions, real estate 2 RANDY NUSSBAUM Attorney | Sacks Tierney PRACTICE AREAS: Bankruptcy, debtor and creditor rights, trustee representation, commercial litigation, real estate law, construction litigation

9 3 DAVID J. OUIMETTE Member | Dickinson Wright PRACTICE AREAS: General commercial litigation, with a focus on legal malpractice defense, real estate litigation, municipal litigation and appeals

6 STEVEN D. PIDGEON Co-managing partner | DLA Piper PRACTICE AREAS: Public and private securities offerings, mergers and acquisitions, leveraged buyouts and private equity investments

4 PAMELA OVERTON RISOLEO Shareholder | Greenberg Traurig PRACTICE AREAS: Litigation, class action litigation; product liability and mass torts; pharmaceutical, medical device and healthcare litigation; arbitration and mediation; cybersecurity litigation

7 STEVEN PLITT Senior member | The Cavanagh Law Firm PRACTICE AREAS: Insurance law and insurance benefits, insurance litigation

5 MARTHA C. PATRICK Of counsel | Burch & Cracchiolo PRACTICE AREAS: Tax controversy, taxation

CATHY L. REECE

8 STEPHANIE QUINCY Partner | Quarles & Brady LLP PRACTICE AREAS: Labor and employment, trade secrets and unfair competition, financial institutions litigation, trade secrets 9 CYNTHIA A. RICKETTS Co-founding partner | Sacks Ricketts & Case PRACTICE AREAS: Complex contract and commercial litigation, consumer class action defense Director | Fennemore Craig

PRACTICE AREAS: Financial restructuring, bankruptcy and creditors’ rights; aviation,

aerospace and autonomous systems; business litigation BACKGROUND: Reece is recognized in Benchmark’s Top 250 Women in Litigation, Best Lawyers in America and Southwest Super Lawyers. She has received the Legal Advisor of the Year Award from M&A Advisor and the Outstanding Individual Award from the International Turnaround Management Association. SOURCE OF PRIDE: “I represented the committee of creditors/investors who

were victims of alleged Ponzi schemes or affinity fraud in two of Arizona’s largest bankruptcy cases and represented the trustee of several senior care facilities whose residents were victims of alleged fraud. I helped to establish meaningful communication with the victims, fought for the maximum recovery of their money and led the charge to liquidate assets and distribute substantial funds to the victims.” ADVICE: “Try different areas of law in the first few years until you find an area you like and then wholeheartedly embrace it.” 60

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TOP 100 LAWYERS IN AZ 2018 1 MICHAEL P. RIPP Shareholder | Ryley Carlock & Applewhite PRACTICE AREAS: Banking and finance, commercial real estate transactions, commercial lending, loan workouts and enforcement 2 KRISTEN B. ROSATI Partner | Coppersmith Brockelman PRACTICE AREAS: Health information privacy and security, including data breaches; health information exchange and data sharing for research and clinical integration initiatives

3 SHARON B. SHIVELY Shareholder | Sacks Tierney PRACTICE AREAS: Construction law, civil litigation, arbitration and mediation

1 5

4 NONNIE L. SHIVERS Shareholder | Ogletree Deakins PRACTICE AREAS: Employment law, healthcare, higher education, litigation, retail 5 WENDI A. SORENSEN Shareholder | Burch & Cracchiolo PRACTICE AREAS: Personal injury and wrongful death, commercial litigation, construction, labor and employment

4 8

6 SARAH A. STRUNK Chair of the board of directors | Fennemore Craig PRACTICE AREAS: Business and finance law, mergers and acquisitions, corporate governance, securities compliance, public-private partnerships 7 SHERYL A. SWEENEY Shareholder | Ryley Carlock & Applewhite PRACTICE AREAS: Energy, water, environmental, electric utility and special taxing districts law

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8 JENNIFER A. VAN KIRK Partner | Lewis Roca Rothgerber Christie PRACTICE AREAS: Intellectual property generally, copyright, trademark, international brand portfolio management, rights of publicity 9 DEBORA L. VERDIER Partner | Manning & Kass, Ellrod, Ramirez, Trester PRACTICE AREAS: Employment practices liability, professional liability, directors and officers liability, general commercial litigation

WENDY RIDDELL Managing member | Berry Riddell

BACKGROUND: Riddell specializes in land use law and lobbying, advising and guiding

such diverse and significant projects as Westgate, HonorHealth campuses across the Valley, campuses for the Diocese of Phoenix and The Preserve at Goldfield Ranch. TREND TO WATCH: “Technology and social media continue to be game changers

in the industry. An issue we face in the zoning stage of development is the ease with which technology allows neighbors to organize and spread information — and sometimes misinformation — which can affect our strategy in gaining neighborhood support.” ADVICE: “Get involved and build strong relationships in the community and join

a village planning committee or planning commission. The decisions that really define our community are made at a local level and it is very rewarding to be a part of the process.” 62

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TOP 100 LAWYERS IN AZ 2018

3 2

8 7

5 6

1 PAUL M. WEISER Shareholder | Buchalter PRACTICE AREAS: Real estate purchases and

sales, receiverships, commercial landlord/ tenant matters, real estate brokerage issues, construction claims and defenses

2 STEVEN D. WHEELESS Partner | Steptoe & Johnson PRACTICE AREAS: Labor and employment litigation, labor relations, employment law 3 NANCY L. WHITE Partner | Steptoe & Johnson PRACTICE AREAS: Corporate, securities and finance, property 4 DENNIS WILENCHIK Member | Wilenchik & Bartness PRACTICE AREAS: Commercial, business and real estate litigation; civil and criminal trials and appeals 5 LONNIE WILLIAMS, JR. Partner | Stinson Leonard Street PRACTICE AREAS: Employment and labor law, business litigation, class action, employment class action and FLSA litigation, employment litigation

6 MICHAEL B. WITHEY Founding partner | Withey Morris PRACTICE AREAS: General real estate matters; land use and zoning; real estate development; government relations, approvals and entitlements 7 CHARLES WIRKEN Attorney | Gust Rosenfeld PRACTICE AREAS: Appeals; commercial, real estate, and franchise litigation; arbitration and mediation 8 SUSAN M. WISSINK Director | Fennemore Craig PRACTICE AREAS: Business and finance, emerging business and technologies, government procurement 9 MARK G. WORISCHECK Managing shareholder | Sanders & Parks PRACTICE AREAS: Insurance coverage, aviation, personal injury

SCOTT K. WEISS

Attorney | Weiss Brown

SOURCE OF PRIDE: “Starting our own law firm with Garland Brown and building

an incredible team from scratch is definitely my most proud professional accomplishment. Building a team to tackle complex transactions was necessary to complete, I just didn’t realize at the time that it would be the best part of the job.” ADVICE: “Your ability to build your network as a young lawyer will greatly

enhance your ability to build a thriving practice. No amount of automation will replace this skill — it takes time and attention to build a quality relationship.”

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TREND TO WATCH: “Virtual law firms are becoming more common, as more powerful technology has allowed attorneys and paralegals to work from any location. This provides a new paradigm for a law firm as it will provide great flexibility and work/life balance, which is a priority for most bright young professionals.”

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azBIGmedia.com | 602.277.6045 AB | March - April 2018 65

EAST VALLEY PARTNERSHIP

EAST MODE PHX East Valley has become a hotbed of growth and innovation

By ERIN THORBURN

n 1920, Gilbert was largely recognized as a farming community, toting the slogan, “hay capital of the world.” In the same era agriculture reigned supreme in Chandler, yielding cotton, grains, alfalfa and the raising of cattle, sheep and ostriches. Until the 1960s, 50 percent of Mesa’s residents claimed earnings as farmers. Like many communities, the PHX East Valley has (not surprisingly) transformed exponentially. What was once a region made up of sleepy suburbs that relied on agriculture as its economic backbone has transformed itself into a cutting-edge region that has become an innovative leader in autonomous vehicle testing, aviation and aerospace, education, financial services and fintech, healthcare, technology and semiconductor manufacturing, tourism and agritainment. Experts unanimously agree that the attribution for transformation and growth is undoubtedly due to the overwhelming spirit of collaboration, leadership and ingenuity that has and continues to pave the way for innovation, expansion and maturation within the East Valley.

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NOT SO SLEEPY COMMUNITIES Although the PHX East Valley has sprouted from humble beginnings, the seed of innovation has always been present. Think back to the establishment of Arizona State University in 1885 and jumping forward to the aerospace companies that started to pop up in the 1950s. “In the 1970s, Chandler had a clear vision of where it wanted to go,” says City of Chandler Economic Development Director Micah Miranda. “A high percentage of the workforce was already in the tech space – Rogers Corporation, Microchip Technology, Intel and Motorola.” Of course, technology and manufacturing are simply one caveat of modernization. In addition to the arrival of aerospace businesses in Mesa, the entire PHX East Valley has become home to innovative companies like Boeing, Orbital ATK, KinetX Aerospace, Qwaltec and more, collectively contributing to Arizona’s No. 1 spot in aerospace manufacturing, which the state earned in 2016. Of course, the presence of both small and large aerospace companies translates into more than simply modernization, it means more opportunity to entice highwage earners.

“These companies bring in 400-plus jobs that require advanced degrees in science and engineering,” explains City of Gilbert Economic Development Director Dan Henderson. Another example of early footing in innovation and progress – the now Phoenix-Mesa Gateway Airport. “Once the City of Mesa annexed Williams Air Force base, they worked diligently to redevelop the space into what it is today and the airport continues to expand,” says East Valley Partnership Senior Business Advisor Mike Hutchinson. The former military base established as a pilot training facility in 1941 is now owned by the Phoenix-Mesa Gateway Airport Authority, which consists of the City of Mesa, City of Phoenix, The Gila River Indian Community, Town of Gilbert, Town of Queen Creek and City of Apache Junction. The airport is currently home to more than 40 companies. GAME CHANGER “It was recently announced that SkyBridge Arizona, which will be within Gateway Airport, will be the nation’s first international air cargo hub to house both Mexican and United States customs,”

says City of Mesa Economic Development Director Bill Jabjiniak. “As the first of its kind, this innovative service will provide more rapid processing through customs and enable e-commerce companies, manufacturers and other commercial interests conducting business in Mexico and Latin America to more efficiently and cost-effectively transport goods between countries.” While significant progress continues to be made in technology, aerospace, healthcare, education and infrastructure, it’s important to note the integrity that has been maintained in preserving the PHX East Valley’s origins. “Despite all the innovation and progress, we’ve been able to keep our sense of community,” says Mark Schnepf, owner of Schnepf Farms and former mayor of Queen Creek. “We’ve grown up, but we haven’t thrown away or lost qualities that we’ve always had. We have a strong agritourism presence that helps to create a conscious link to the past, but in a way that’s relevant to today.” SMART LEADERSHIP MEANS SMART PLANNING One thing for which all experts adamantly agree is that the PHX East

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EAST VALLEY PARTNERSHIP Valley flourishes largely because of strong and consistent leadership. It’s because of the collaborative efforts of elected officials and city managers with collective vision and experience that the PHX East Valley has been primed to become the center for innovation and expansion that it is. “Cooperation is absolutely paramount,” says Henderson, “and is clearly evident in the East Valley’s accumulation of a population consisting of 1.5 million people.” “We do a lot of cooperative things as communities, from devising water and wastewater management solutions, to incorporating public safety systems,” Hutchinson adds. “We have impeccable leadership at the civic, city level in our school districts and entire education systems.” The entire East Valley education system to which Hutchison refers consists of 14 K-12 school districts, 125 K-12 charter schools, one regional Career Technical Education (CTE) district, five community colleges (with multiple campuses), six private universities (also with multiple campuses) and two state university campuses. “As a result of having some of the best schools in the country and multiple opportunities for quality education, combined with sound political leadership and fiscal responsibility, the East Valley is poised to attract businesses looking to relocate,” Miranda says.

APACHE JUNCTION Apache Junction has invested millions of dollars in infrastructure and place-making improvements in its core downtown area. These investments are aimed at promoting residential density and growing retail options that will combine to create a pedestrian-friendly environment. The city is seeing an increase in commercial and retail project activity, the largest project being the relocation and expansion of the local Fry’s grocery store into a newly developed 150,000-square-foot retail center. In addition to expanding retail offerings in the downtown, the city is actively seeking to diversify local employment opportunities.The City Council recently approved the rezoning of eight acres of land to allow for a 90,000-square-foot manufacturing facility to be constructed. 68

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CHANDLER Known as the innovation and technology hub of the Southwest, Chandler is experiencing strong economic growth thanks to its talented workforce, reliable infrastructure, active commercial real estate market and pro-business leadership. Several leading employers have expanded their operations in recent years, signaling trust in Chandler’s labor supply and long-term economic outlook. Developers also continue to invest, with more than 1 million square feet of new office and industrial space poised to deliver in 2018. With most remaining greenfield sites already committed for development, the City of Chandler is focusing on Chandler’s core by encouraging redevelopment through its Adaptive Reuse and Infill Incentive programs.

GILBERT Gilbert was recently named the Most Prosperous City in the Nation by the Economic Innovation Group. Contributing to this accolade is a bustling business community that supports a growing and educated workforce. Two of the standout economic drivers that are supporting this type of accolade are the Heritage District and Rivulon. Gilbert’s Heritage District has become one of the top dining and entertainment districts in greater Phoenix, with nearly $90 million in private investment in the area from 2012-2017, and many more exciting projects currently under development. Rivulon is a premier 250-acre mixed-use development that will include 3 million square feet of Class A office, about 250,000 square feet of retail and hospitality amenities once completed, supporting thousands of jobs in the region.

BUILDING BLOCKS Education, of course, is simply one aspect of infrastructure that has bloomed in the explosion of innovation, economic prosperity and overall growth of the PHX East Valley. “Our transportation corridor is a huge attraction,” Hutchinson says. And it’s also a necessity.“The East Valley is comprised of 74, 500 positive net commuters – people coming into the East Valley for jobs,” Henderson elaborates. “Although we still have work to do,” Schnepf adds, “we’ve made great strides with the Loop 202 and the new Arizona State Route 24 coming in.” In addition to civic leadership, the success of a healthy, solid infrastructure can also be attributed to the collaborative efforts of local partnerships. “The efforts of the East Valley Partnership combined with other organizations like Visit Mesa have helped the East Valley find and perpetuate a common ground,” Schnepf says. “Unlike what can often happen, the East Valley is devoid of the parochialism and competitiveness.” THE FUTURE OF INNOVATION Although it remains somewhat of a “which came first, the chicken or the egg,” mystery in terms of PHX East Valley growth in population versus job growth and how they have led to the boom in innovation, regardless of which came first or if they

QUEEN CREEK As a growing community, the Town of Queen Creek continues to attract a diverse mix of development. From restaurant and retail in the Town Center to industrial and agritainment, development continues to grow in Queen Creek. The town has made strategic investments in infrastructure to create and encourage opportunities for private development. Queen Creek will celebrate the opening of its first car dealership this year. As new development occurs, the town is also working to create a walkable and lively downtown that offers unique experiences and is in negotiations with a proposed hotel on town-owned land in the Town Center.

MESA Manufacturing is an important part of Mesa’s economy employing more than 17,000 people and bringing substantial investment into the community. With aerospace and defense hubs built around Falcon Field and Phoenix-Mesa Gateway Airport, companies like Boeing, GECO and Able Aerospace help drive Mesa’s economy. Bolstering Mesa’s stake in that sector are recent projects that include Longbow Gateway One, a 150,000-square foot speculative industrial facility in Falcon Field District and SkyBridge Arizona, the nation’s first international air cargo hub to house both Mexican and United States customs. The first-of-itskind service will operate out of PhoenixMesa Gateway Airport.

TEMPE With the help of ASU — which has been named the most innovative university in the nation — Tempe has become a hotbed for technology and innovation. Companies like KinetX Aerospace and Qwaltec have helped Tempe foster a vibrant commercial space industry. In addition, projects like The Collective, a massive, mixed-use project that features a bike, foot and stroller-friendly design; and the transformion of the iconic Hayden Flour Mill and Silo buildings into a commercial mixed-use complex with an upscale, independently branded hotel, is helping Tempe attract a new generation of workers and innovative companies that want to call Tempe home.

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EAST VALLEY PARTNERSHIP

Dan Henderson

Mike Hutchinson

happened simultaneously, businesses and residents continue to be attracted to this region of aggressive growth. “In the last 15 years, there’s been significant maturing in the East Valley with the build-out of individual communities with higher densities,” Hutchinson says. By the year 2020, the East Valley is projected to house 1.4 million residents. And for now, the East Valley accommodates 42 percent of the entirety of the Metro-Phoenix workforce. In addition to the plethora of aerospace manufacturing and technology opportunities with companies like GoDaddy, Apple, Intel, Garmin and Gangplank, the East Valley hosts several other competitive industries. “Each industry is a cluster,” Miranda says, “semiconductor, biotech, autonomous vehicles. They are all so different, but continue to all be drivers of innovation.” As the tech industry bolsters new opportunities, turn your attention to financial services. “Wells Fargo is slated to construct a 200,000-square-foot tenant improvement in Chandler with up to 1,300 fulltime jobs,” says Erik Powell, Stevens Leinweber Construction’s director of new construction. Stevens Leinweber Construction is also tasked with construction of the Liberty Mutual tenant improvement – also in Chandler – bringing in an additional 1,000 full-time jobs. “A lot of these jobs are new positions, providing a valuable addition to the local workforce,” Powell says. BOOMTOWN Mesa’s Elliot Road Technology Corridor is seeing significant activity as well, according to Jabjiniak. 70

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Bill Jabjiniak

Micah Miranda

“EdgeCore Internet Real Estate will soon break ground on a 1.25 millionsquare-foot, state-of-the-art data center in the Corridor and Niagara Bottling just completed a 450,000-square-foot highly automated manufacturing and bottling facility,” he says. For entrepreneurs, there is no shortage of opportunity within the PHX East Valley, thanks to the regional partnership of the Phoenix East Valley Angel Investor Initiative. “The goal of the PHX East Valley Angel Investor Initiative is to fuel tech sector growth by identifying, educating and activating potential angel investors living in the region,” Miranda says. “The critical early-stage funding and support provided

Mark Schnepf

by these angel investors will help PHX East Valley startups commercialize new technologies, create quality jobs and grow to become industry leaders.” No matter what the industry, the PHX East Valley’s affinity for growth, innovation, leadership and fostering communities with integrity is blatantly observable. “We offer a little bit of everything,” Schnepf says. “From quality job creation and education to improvement in infrastructure and transportation.” And he adds, in closing, “The East Valley is a great place – whether to raise a family, attract singles or become home for Millennials.”

BUSINESS BOOSTS EDUCATION • Intel Foundation gave more than $11.5 million in grants, donations, and in-kind gifts to local Arizona schools, universities, and non-profits. More than one-third of Intel’s local employees dedicated 146,091 hours to support the community through Intel Involved. • A PS annually donates $10 million to charitable organizations including $2.9M to Arizona STEM education programs. • GoDaddy has donated more than $17 million to nonprofits that support STEM, computer science education and entrepreneurship. Communities impacted include Phoenix, Silicon Valley, Seattle and Los Angeles. • The Boeing Company has sponsored Engineering is Elementary through grants to PHX East Valley schools. The program has benefited 530 teachers, 66 schools and over 16,875 students. • Spark App League is a mobile development contest created by the Town of Gilbert and is hosted in partnership with Arizona State University’s Ira A. Fulton Schools of Engineering and Waymo, to support student engagement in STEM programs. Last year’s games involved over 200 students with over 60 teams competing for prizes. • Orbital ATK’s Project Lead the Way provides K-12 teachers in the PHX East Valley with training and support to enhance student learning relating to STEM. Orbital ATK supports the program through student tours of their Gilbert manufacturing facility, and delivering in-class presentations to inspire careers in STEM. • CenturyLink offers more than $1.4 million in grants to help support technology in the classroom.

EAST VALLEY PARTNERSHIP

Here’s why PHX East Valley cities have developed into the hottest job markets in the country By ANDREW NICLA

raduation season is approaching, bringing with it a new class of educated and qualified workers. If some grads play their cards right, they won’t have to look far for their first job. They’ll just look East — the PHX East Valley, to be precise. A recent WalletHub study ranked two East Valley cities — Chandler and Gilbert — among the top five places to find a job in the United States. State business experts credit these rankings to a robust and growing economy, fueled by a growing and highly educated population, coupled with economic incentives. Within the last decade, these two cities, whose economic roots were grounded in agriculture, have sprouted into technology hubs, attracting some of the nation’s largest companies who see promise in the PHX East Valley workforce. That job growth is evident in the low unemployment rates, as both Chandler (3.4

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TOP 10

GILBERT EMPLOYERS 1. Gilbert Unified School District, public education 2. Banner Health, healthcare 3. Town of gilbert, government 4. Wal-Mart Stores, retail 5. GoDaddy, advanced business services 6. Higley Unified School District, public education 7. Fry’s Food Stores, retail 8. BH Drywall, construction 9. Dignity Health, healthcare 10. Hunter Contracting, construction

percent) and Gilbert (3.2 percent) sit lower than the state average of 4.7 percent. Garrick Taylor, senior vice president of government affairs and communications for the Arizona Chamber of Commerce, has monitored the growth of the East Valley, and Chandler and Gilbert in particular, from the state level over the past nine years at his post. What sets these job markets apart from others, Taylor said, is that they create a “welcoming environment” for large companies by lessening bureaucratic burdens, cutting red tape and maintaining a competitive tax position. Part of what makes Gilbert so attractive to people, Taylor said, is the now revitalized downtown area and a quality school systems that service the area. By balancing community and business interests, Gilbert has attracted hordes of young and highly educated people.

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EAST VALLEY PARTNERSHIP CHANGING PERCEPTIONS “No longer is it just an East Valley bedroom community,” Taylor said. “It has a very high quality of life and downtown offerings that many cities across the country would be envious of.” In the past five years alone, about 22,000 people moved to Gilbert, continuing the trend of nearly doubling its population every five years from 1980 to 2000. By 2030, Gilbert is expected to be home to more than 300,000 people. Dan Henderson, director of Gilbert’s office of economic development, has seen the city’s economy prosper over the past decade. He said the ranking was a “wonderful accolade” that now sits on the shelf next to several others that recognize Gilbert as an exceptional community. Some factors that played a “critical” role in job growth and what attracts companies like Banner Health and GoDaddy to Gilbert, Henderson said, is its young, vibrant and highly educated workforce. In addition, population age, income, education attainment and housing also play critical roles. People who live in Gilbert are more well off and younger than the average Arizonan. According to census data, 41 percent of residents hold a bachelor’s degree or higher, the median age is 33 years old and the average household income is $98,458. “Because of our highly educated, young resident base, these attributes are very attractive to companies looking to move to expand to the area,” Henderson said. “It’s these attributes that companies are looking for. We use our demographics as an incentive to bring in employers into the community.” Henderson said he and his economic development team will continue to attract and retain companies from an array of disciplines like finance, insurance, real estate and healthcare, which initially helped its economy blossom. CENTER OF INNOVATION The city of Chandler has also used similar strategies to diversify its job market. What makes this city’s story so compelling, Taylor said, is how drastically the business makeup has changed. “In a generation’s time, Chandler has moved from an agribusiness hub to really represent the entire state’s burgeoning tech scene,” Taylor said. Chandler has managed to attract companies like Intel, its largest employer, Orbital, General Motors, Rodgers 74

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Dan Henderson

Micah Miranda

Corporation and paved the road for autonomous vehicle testing for companies like Waymo. Micah Miranda, director of economic development for Chandler, said what sets Chandler apart from other cities across in the state is its long-term political and financial stability, strong school system, a “very dynamic” labor profile and that it is has always been “business-friendly.” “All of these things really have been driven by mayor and city councils going back decades,” Miranda said. “We have a long track record in developing high-quality projects and high quality community. All of these things make Chandler a very attractive place to find a job and for private sector capital investments.” Part of what helps the city maintain its business-friendly image, Miranda said, is an experienced and competent staff that businesses can trust with almost any project because of “historical expertise.” Another important factor, Miranda said, is that the city has some of the lowest property taxes in the state, which signifies a stable political and financial environment for businesses. Miranda stressed that most of the city’s growth has generated from the city’s

Garrick Taylor

downtown area and in Price Corridor, where science and technology companies are housed. But the job growth isn’t just in tech, it’s diversified. Companies like Wells Fargo, Bank of America, Chandler Unified School District and Chandler Regional Medical Center account for 15,300 jobs. Like Gilbert, Chandler’s workforce is also young and educated, as 43 percent of residents have a bachelor’s degree or higher, which is what companies look for. But when residents do lack skills, schools like the University of Arizona offer bootcamps in coding and data analytics to make job seekers even more valuable in high-need growth sectors like technology, Miranda said. What has and what will continue to set Chandler apart from the rest of the East Valley, Miranda said, is its commitment to the “fundamentals.” “We are a city that knows who we are and what we want to be,” Miranda said. “We adhere to the fundamentals of being fiscally and politically stable, continuing to invest in educational assets and continuing to maximize value in each remaining square foot of land. Those are the underpinnings of every good economic position.”

TOP 10

CHANDLER EMPLOYERS 1. Intel, microprocessors

6. PayPal, financial services

2. Chandler Unified School District, public education

7. NXP (Formerly Freescale Semiconductor), semiconductors

3. Wells Fargo, corporate banking

8. Orbital ATK, aerospace launch systems

4. Bank of America, mortgage processing center 5. Chandler Regional Medical Center, healthcare

9. Microchip Technology, microprocessors 10. City of Chandler, government

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EAST VALLEY PARTNERSHIP

MESA GETS A

MAKEOVER

Caliber, other leaders embark on a major revitalization project involving downtown retail buildings By JESSE A. MILLARD

or years, Arizona’s cities have been revitalizing their downtowns by bolstering the arts, installing public infrastructure like the light rail and enticing a plethora of unique, private development projects. It’s no question that Downtown Mesa has been on the receiving end of these efforts, as light rail and the Mesa Arts Center have transformed the area. Now, Downtown Mesa is set to receive another transformation after Caliber, The Wealth Development Company purchased 100,000 square feet of property in the heart of downtown. Caliber’s $7.625 million purchase consists of eight historic buildings along Main Street between Country Club Drive and Center Street. The buildings are just a short walk from the light rail, connecting the properties to the entire Valley. Caliber has plans to renovate the interiors and exteriors of these buildings by removing stucco facades and restoring the historic roots of these properties. The basement spaces and old brick within these buildings lend themselves to unique and interesting development ideas for new restaurants and entertainment spaces, says Jennifer Schrader, president and co-founder of Caliber. Currently, Schrader says there isn’t a whole lot to do in Downtown Mesa. Caliber wants to add options to the area

TRANSFORMATION COMING: Timothy Sprague, managing member of Habitat Metro; Jennifer Schrader, president and co-founder of Caliber, The Wealth Development Company; Mesa Mayor John Giles; and Roy Bade, executive vice president of commercial acquisitions Caliber, stand on Main Street is the soon-to-be-revitalized Downtown Mesa. PHOTO BY MIKE MERTES, AZ BIG MEDIA 76

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GROWTH IN MESA

There’s more to do in Downtown Mesa than ever, and soon more people will be able to live in the area. Mesa Mayor John Giles says that developers are planning — and the Mesa City Council is in the process of approving — 1,500 housing units in the heart of Downtown Mesa. “We’re going to have 24/7 activity with more people living downtown again,” Giles says. Co+Hoots, a Phoenix-based co-working space, will be expanding into Downtown Mesa soon, bringing entrepreneurs and startups to the area. Co+Hoots will take up 13,500 square feet at the upcoming $60 million Grid mixed-use project. The coworking space for entrepreneurs and startups will be in Downtown Mesa in 2019, according to the company.

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EAST VALLEY PARTNERSHIP “By luck and by chance and a lot of hard work, this Downtown Mesa is what people want,” Mesa Mayor John Giles

through its redeveloped properties and create a setting where visitors will want to spend an entire day in Downtown Mesa. “I hope people really fall in love with the community again,” Schrader says. “Mesa has an opportunity to really create a good family setting, somewhere where people will want to raise their kids, will want to spend time and not be so transient anymore.” Mesa Mayor John Giles is excited to see Caliber’s plans for Downtown Mesa. Giles has played a role in much of the public investment into Downtown Mesa since he was a councilman in the late 1990s, paving the way for private investment like this. Giles remembers when Downtown Mesa was “embarrassing” due to the area’s ghost town atmosphere, but he worked to bring the $100 million Mesa Arts Center and the light rail, both of which made a dramatic change to the area. “By luck and by chance and a lot of hard work, this Downtown Mesa is what people want,” Giles says. “We set this stage now, for creating this environment people want.” Giles says it’s great to see private investment from Caliber that will help further transform the Downtown Mesa area, making it more attractive for future employers and private investment. Caliber’s developments could also bolster Mesa’s efforts of bringing ASU into Downtown Mesa as well, Giles says. He say economic developers have to make areas around universities attractive for students, and public investment on things like the light rail and the Mesa Arts Center are one part of that. “We also need the business community infrastructure to create an environment that’s welcoming and attractive for people,” Giles says.

Caliber will create these attractive environments as it brings the historic vibe back to Downtown Mesa. All eight of the buildings Caliber purchased were built between 1910 and 1954. If you were to walk by each of these buildings now, it would look like the building are much more modern, but Caliber will be transforming the buildings in the coming months, says Roy Bade, executive vice president of commercial acquisitions and development at Caliber. The purchased buildings have a lot of character, Bade says. In one of the stores, Caliber began to remove some of the plaster on the walls, revealing an old painting from when the store was a “five & dime,” he says. “The great trusses in there, the wood is in incredible shape still, so we’re excited to work with Mesa and bring back some of the character,” Bade says. One of the buildings was the old Coors distributor building, the first beer distributorship Coors set up outside of Colorado, Bade mentions. Downtown Mesa could see these improvements and new tenants take shape over the next few months. Bade says Caliber is currently working on getting six to eight tenants to move into the buildings, and then another three to six months would be needed for tenant improvements. “Our goal here is for people to want to stay in downtown,” Bade says. “They don’t want to come here for breakfast or lunch. They want to stay here, live here, make it their home in downtown, versus a place to visit.”

A LOOK AT HISTORY All eight of Caliber, The Wealth Development Company’s recently purchased buildings are along Main Street in Downtown Mesa. The buildings were purchased for nearly $8 million and make up 100,000 square feet. Here’s a breakdown of the eight buildings Caliber purchased.

18 West Main Street: 16,104 square feet; built in 1948

137 West Main Street: 16,658 square feet; built in 1954

48 West Main Street: 9,000 square feet; built in 1948

155 West Main Street: 6,697 square feet; built in 1948

114 West Main Street: 28,160 square feet; built in 1949

202 West Main Street: 4,256 square feet; built in 1948

120 West Main Street: 11,658 square feet; built in 1910

206 West Main Street: 3,850 square feet; built in 1945

AB | March - April 2018

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2018

2018 HSMAI ARIZONA CHAPTER LEADERSHIP TEAM: Top row: Amanda Saye, Juliann Drew, Stephanie Long, Jennifer Swanson, Oscar Mastrantuono, Andrea Neece, Cheryl Street, Erik Dorr, Megan Padish, Stephanie Liegeois, Shannon Johnson and Kevin Duncan. Bottom row: Terry McDonald, Lynn Flosi, Rochelle Barton, Kerrell Dunsmore, Joanne Winter, Becky Bulkley, Lori Morris and Barry Nakano. Not pictured: Penny Allphin, Leilani Cabuntala, Wendy Johnson, Alma Pink, Tara Thain and Holly Zoba.

HOSPITALITY SALES & MARKETING ASSOCIATION INTERNATIONAL

HSMAI president traded in a career in theater to become a leader in Arizona’s hospitality industry By ERIN THORBURN

ho better to command the helm of the Arizona Chapter of the Hospitality Sales and Marketing Association International (HSMAI) than a self-driven, ambitious, mother of four (including an 8-month-old) with a deep-rooted history in hospitality sales and marketing than Rochelle Barton? In addition to serving as HSMAI’s Arizona chapter president, Barton is the director of event sales for Topgolf Gilbert and is always at the ready for a new challenge. Az Business talks with Barton to find out what makes this local mover and shaker an inspiration and valuable leader to HSMAI members and professionals within the industry. Az Business: What led to you becoming HSMAI’s Arizona Chapter president? Rochelle Barton: I began my career in hospitality with the Hard Rock Café in New York City, Times Square. Talk about being thrown into the deep end without water wings. It was an incredible experience and a spark was lit for an industry that

About HSMAI WHAT IT IS: The Hospitality Sales and Marketing Association International (HSMAI) is a global organization of sales and marketing professionals representing all segments of the hospitality industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry while operating as a leading voice for both hospitality and sales and marketing management disciplines, as well as connecting its members with customers. The Arizona Chapter was established in 1968 and is the second largest chapter in the U.S. INFORMATION: hsmai-az.org

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I had not previously considered. At the time, I was pursuing a professional career in theatre and was in-between shows. What started as a temporary solution to survive in New York City, became a very fulfilling career. I stayed with Hard Rock Café for a little more than 12 years in New York, as well as Phoenix. We moved to Arizona for my husband to further his career with Major League Baseball. After our move, I began attending various local networking meetings and researching professional organizations within the industry. I soon discovered HSMAI, which not only offers monthly networking opportunities, but also provides outstanding educational resources. I quickly jumped in full force by volunteering as a committee member and ultimately into various roles on the leadership team. I never would have imagined that eight years after joining HSMAI, I would be serving as president. Through my various connections with HSMAI, as well as the local chapter of Meeting Professionals International, I was able to land my

LEADING THE BEST: Rochelle Barton, director of event sales for Topgolf Gilbert, is president of the Arizona Chapter of the Hospitality Sales and Marketing Association International (HSMAI), which earned HSMAI’s Frank W. Berkman “Best of the Best Awards” for Community Involvement and Fundraising. PHOTO BY MIKE MERTES, AZ BIG MEDIA

HSMAI current role as director of sales for Topgolf Gilbert and I have been with them for the last 3 years. AB: How has HSMAI impacted your career? RB: Throughout my journey, HSMAI has provided a resource for connecting me with other professionals in sales and marketing through a worldwide network. I have had the opportunity to participate in the Mike Leven Leadership Conference a couple of times, as well as local market conferences. The HSMAI Arizona chapter has given me the motivation to further my education in revenue management, as well as the digital marketing platform. I learn something new on a regular basis — either through monthly educational meetings or online with podcasts and the knowledge center. I hope to continue and grow with Topgolf and having HSMAI as a constant resource will be a contributing factor to that growth. AB: How is HSMAI instrumental in attracting new meetings, events and conventions to Arizona? RB: HSMAI has always been a leader in hospitality sales and marketing by identifying the hottest trends and communicating with its members. With a foundation that began in 1927, the organization has endured the test of time and brings 90 years of innovation and progression to an ever-evolving industry. Here in the Valley, HSMAI is celebrating 50 years of educating local industry leaders on what’s new and what will set Arizona apart for meetings and conventions. Of course it helps to live in a paradise of year-round options. AB: What issues or trends will have the biggest impact on your industry in the coming year or two? RB: As the world continues to move in such a fast-paced digital direction, I definitely see discussions centering around how those advancements will affect the hospitality industry in sales, marketing and revenue management. I know HSMAI is committed

to staying on top of those advancements and offering educational resources to stay ahead of the game. HSMAI was the first organization to offer professional certification in digital marketing with the Certified Hospitality Digital Marketer, or CHDM. With any large gathering, I know safety is of utmost importance and I see this topic having a presence and being addressed throughout the year. That’s part of what I love about HSMAI – the organization is not afraid to tackle the difficult and sometimes sensitive subjects that we all want to talk about, but may not know how to start the conversation. AB: What are you most looking forward to in your role as the local HSMAI president? RB: Over the last eight years, I have had the opportunity to build lasting relationships in the hospitality industry and I look forward to not only strengthening those relationships, but getting to know more of the 250 total members in our local chapter. I am also looking forward to leading a stellar team in an industry that I’m passionate about. AB: What are some of the challenges? RB: As a busy mom of four children ranging in age from 8 months old to 10 years old, that’s always my biggest challenge. I hope, however, that by serving in this capacity, not only will I discover new ways to share experiences of how to manage work-life balance, but that I’ll also have the opportunity to set a positive and encouraging example for other working mothers in the industry. AB: In addition to your role as HSMAI president, if you were gifted one superpower, what would it be? RB: I’m a healer by nature and I think if I could have any superpower, that would be it. If anyone around me is hurting, my first instinct is to take away that pain. I know that once people found out about it, I might never get a moment’s rest, but I’m a people person, so bring it on.

HSMAI leaders

Here are the winners of the Arizona Chapter of the Hospitality Sales & Marketing Association International (HSMAI)

2017 AWARDS OF EXCELLENCE: • Hospitality Sales & Marketing Professional of the Year: Amanda Saye, GreenTree Hospitality Group, Inc.

• Committee of the Year: Student Relations Committee

• Hospitality Student of the Year: Sheryl Wood, NAU

• Shining Star: Oscar Mastrantuono, North Central Group

• General Manager of the Year: Bleu Petty, GreenTree Inn & Suites Phoenix Sky Harbor

• Rising Star: Shannon Johnson, Experience Scottsdale

• Sponsor of the Year: Best Western Hotels & Resorts • Leadership Appreciation: L’Auberge de Sedona • Sponsor of the Year: Sonata Venture • Revenue Management Professional of the Year: Kevin Duncan, Classic Hotels & Resort

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• Spirit of Hospitality: The Event Team, Inc.

• Host Venue of the Year: Doubletree Resort by Hilton, Paradise Valley-Scottsdale • President’s Achievement: Amanda Saye, GreenTree Hospitality Group, Inc.

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HSMAI

TODAY’S STUDENTS,

TOMORROW’S LEADERS HSMAI creates a link between education and leadership in the hospitality industry

By ERIN THORBURN

ou don’t have to be a science major to appreciate the value of symbiotic relationships. In fact, no one understands the power of symbiosis in success more so, perhaps, than a hospitality major, as well as leaders within the hospitality industry. And, there to reinforce and enhance this relationship is the Arizona Chapter of Hospitality Sales & Marketing International (HSMAI). Through partnerships with Arizona State University, Northern Arizona University, Scottsdale Community College, Scottsdale Culinary Institute and Thunderbird University, HSMAI is providing exposure, resources and opportunities for students to increase their understanding and education through mentorships, industry experience and more. For hospitality employers, HSMAI is shaping and reinforcing an invaluable workforce of skilled labor that offers a competitive edge and undeniable return on investment. Mentorship and apprenticeship While Arizona’s educational institutions offer exceptional programs in hospitality, mentorship and apprenticeship programs 86

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serve as a supplemental and invaluable real-world experience for both students and hospitality leaders. “Mentorship and apprenticeship programs will allow hospitality students to bring to life key concepts they learn in a classroom with the additional structure of real-world experience and guidance,” says Janelle Hoffman, professor of Hospitality & Tourism Management for Scottsdale Community College. “Apprentice programs, like the recent program launched by AzLTA, for example, allows people dedicated to a career path in hospitality to forge relationships with mentors and people with many years of experience.” For students, mentorships, internships and apprenticeships provide a tangible connection to the local hospitality world and a path toward leadership in the industry. “These supplemental programs give inexperienced job seekers an opportunity to learn first-hand how a job or position functions within the industry,” says recent NAU hospitality graduate Sheryl Wood. “This type of opportunity can ignite drive and excitement for interns to help focus their career path.”

Fellow NAU Hotel and Restaurant Management graduate Kerry Anderson has also found mentorship to be invaluable during her educational experience and beyond. “One of my mentors is Lance Rohs, a college professor I had while in school,” Anderson says. “I still talk to him a few times a month about my career and if I have any questions, he helps me take a step back and really analyze the situation. I recently started my career with Marriott Vacations Worldwide and I’m already looking at everyone I meet there as a possible mentor.” The link to the “live” world of hospitality in the form of mentorship not only offers what Hoffman refers to as “a sounding board of solid experience and opportunities to explore different areas of the industry,” it takes networking to the next level by introducing an expanded and more personalized circle of support. As a result of professional mentoring and supplemental programming, Arizona’s hospitality industry is, in turn, offered highly educated, adept and experienced graduates with expansive skill sets. By sharing their experiences, leaders of the industry benefit by hiring recipients of apprenticeships, mentorships and internships who are deeply vested in hospitality and tourism career paths. The “why” You’ve probably heard the buzz surrounding, “What’s your why?” The answer is intended to reinforce and validate why what you do personally or professionally is of value. If we apply the question to why is a “super-sized” education and experience in the hospitality of utmost importance today, what’s the answer? “A generation ago, the hospitality industry was one in which as long as you were willing to work hard, you could get ahead,” Hoffman explains. “Today’s business climate has a much stronger focus and appreciation for education and training. One thing we have learned in the last decade is that many things can be taken away from you – maybe quicker than imagined. Education, training and experience are things that you can never lose.” And, “the why” doesn’t simply apply on a macro level. There are as many micro caveats of education in which the “why” manifests as an essential skill set borne of combined classroom and real-time application, as demonstrated by one of Wood’s top educational takeaways. “One of the biggest challenges I overcame during my educational program was facing my fear of public speaking,” Wood says. “Through HSMAI connections, I met a person involved with Tovrea Castle at Carraro Heights in Phoenix. One thing led to another and I found myself in training, then certified and giving speaking tours to the public as a volunteer at the castle for two years while going to college.”

Kerry Anderson

Lance Rohs

Janelle Hoffman

Sheryl Wood

HSMAI offers a boost In addition to an opportunity for students to qualify for a Student Membership rate of $70 for three years after they graduate (versus the regular fee), HSMAI offers scholarship opportunities for local and international students. Learn more about the many benefits HSMAI offers students enrolled in an educational hospitality program at (hsmai.org/Resources/student.cfm). Here is a sneak peak of what’s available to student members of the HSMAI Arizona Chapter: • Access to industry publications: HSMAI Marketing Review, HSMAI Insights Newsletter, Student Update e-newsletter and Arizona Chapter e-newsletter. • Complimentary rates for chapter education programs and reduced rates for networking and special events. • Mentoring opportunities through the chapter Student Relations Committee. • Members-only resources athsmai.org and hsmai-az.org. • Internships and temporary sales opportunities through the Student Relations Committee.

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LOOK HSMAI

Meetings and conventions help make tourism Arizona’s most lucrative export industry By ERIN THORBURN

ost people don’t think of tourism as an export industry. And when it comes to Arizona, the state’s tourism export industry is an impact player. Just think of the five C’s of this export industry: Climate, cacti, canyons, culture and conventions. And that’s just the C’s. How big the the state’s tourism export industry? Last year, 43 million people visited our desert state and during their stays, they collectively spent $21.2 billion. Tourism is more than an economic guiding force; it’s an export industry that is providing funding for our education system and infrastructure and impacting our overall economy in the best ways possible, according to experts from the Hospitality Sales & Marketing International Arizona Chapter.

BRINGING IN THE BIG BUCKS AND BUSINESS From Phoenix and Glendale to Flagstaff and Tucson, the business of conventions and meetings is booming in Arizona. This is no

doubt a result of Arizona’s land of plenty in terms of hospitality, meeting space and unique, engaging amenities, but there’s more to the story. Arizona’s tourism entities are vigilant, creative and persistent in marketing the state and creating innovative campaign strategies to draw in new business and opportunities. “This year, Experience Scottsdale is focused on generating business from new destinations, in addition to our key target markets,” says, Experience Scottsdale President and CEO Rachel Sacco. “We’ve been hitting the road for trade shows, sales calls and client events in cities like Austin, Nashville and Kansas City. In doing so, we hope to introduce planners to the destination and build lasting relationships that bring new business to the community.” “Hilton has created a co-op for Phoenix area hotels,” adds Robert Rauch, CHA president and CEO of RAR Hospitality. “They are pooling the marketing dollars from Phoenix-area Hilton branded hotels and using that for more extensive advertising specifically to the Phoenix market. Some areas of focus are drive

ECONOMIC ATTRACTION Is it any wonder that Arizona’s rich export tourism industry supports a healthy economy, contributes to education, infrastructure and more? Here are some of the upcoming events that help drive the tourism and hospitality industry. • Cactus League spring training takes place Feb 23 - Mar 25 and has an annual economic impact of nearly $1 billion. • Phoenix Comic Fest — formerly known as Phoenix Comicon — takes place over Memorial Day Weekend and attracts more than 200,000 visitors, many of whom fill downtown hotels and restaurants. • The American Alliance of Museums will host its annual meeting in Phoenix from May 6-9 and is expected to draw more than 5,000 attendees. Anyone who is anyone in the world of museums will come to Phoenix and get to experience the rich and varied collections of curated artistic content.

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• ACT-W — Advancing the Careers of Technical Women — will host its annual event April 10-13 in Phoenix. ACT-W is a national organization serving thousands of women through tech programs and related events. • The League of United Latin American Citizens’ National Convention and Exposition, which takes place July 17-21, is expected to draw more than 3,000 registered attendees and will host several extravaganzas around town to engage Arizona’s rich and diverse Latino community. • The Net Impact Conference will convene its annual gathering of more than 3,000 attendees Oct. 25-27. Net Impact is an organization that mobilizes new generations to use their skills and careers to drive transformational social and environmental change.

HERE markets, Cvent (company that specializes in meetings management technology) campaigns, weddings and sporting events.” And, while forces in hospitality, meeting planning and tourism unite, cities are working together to increase Arizona’s offerings even more. “Greater Phoenix is continually welcoming new bars, restaurants, resurgent neighborhoods and micro-hoods that are adding vibrancy under the Sonoran Desert sky,” says Lorne Edwards, vice president of sales and services for Visit Phoenix. “We will continue to leverage the collective resources of our greater hospitality partners, as well as those within the local industry to create unique convention experiences that provide engaging content and entertainment.” THE IMPACT OF THE EXPORT Let’s circle back to the previously mentioned statistics, this time adding another number that emphasizes the

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HSMAI value of Arizona’s tourism as an “export industry.” In Scottsdale alone, nearly 9 million domestic visitors explored the city, spending $1.5 billion. “Those are dollars spent at hotels and resorts, restaurants, shops and attractions,” Sacco says. “The Phoenix area offers many top-tier hotels and resorts, but many people don’t know how much group business fills these hotels every year,” Edwards explains. “According to STR Inc. reports, from January through November 2017, nearly half of all occupancy at the luxury and upscale hotels in the Phoenix area was from group business — those booking at least 10 or more rooms per night.” Individual visitors, groups and large conventions assuredly continue to reflect impressive spending, but again, there’s more to the story of our export-tourism industry. “These 18 million -plus visitors generated $443 million in state and local tax revenue in 2016,” Edwards says. This revenue is what creates jobs – 184,200 in direct employment, according to Rauch. REVENUE REVS ECONOMY “Tax revenue from our meetings and conventions are used for everything from police, fire and roads to education,” Rauch says. “Because Gov. Doug Ducey is both education-minded and economic development-minded, those added tax dollars can be put to work to benefit both education and economic development.” Scottsdale, similar to Phoenix, can thank group meetings and business for the influx of tax revenue, which accounts for nearly

Lorne Edwards

Robert Rauch

Rachel Sacco

half of all tax revenue in the city, according to Sacco. “In the first half of the 2017-18 fiscal year, Experience Scottsdale booked 285 meetings and 90,624 incremental room nights into Scottsdale market area hotels and resorts,” she says. “Our efforts equate to $44.5 million in economic impact.” In the case of the City of Phoenix, a 5.3 percent bed tax is applied to guests’ hotel stays, with a small portion going to Visit Phoenix and destination marketing efforts, and the rest going toward community development and improvement and the city’s general fund. “When groups host meetings in Phoenix,” Edwards says, “they are contributing to the local economy’s continual growth. The city and its residents rely on the taxes generated by the hotels to support city services, and these hotels need a steady flow of group business to stay full.”

HOSPITALITY SALES & MARKETING ASSOCIATION INTERNATIONAL HSMAI is committed to growing business for hotels and its partners, and is the industry’s leading advocate for intelligent, sustainable hotel revenue growth. The association provides hotel professionals and their partners with tools, insights, and expertise to fuel sales, inspire marketing, and optimize revenue through programs such as the Adrian Awards, Digital Marketing Conference, Revenue Optimization Conference and ROCET Conferences. HSMAI is an individual membership organization comprised of more than 7,000 members worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at hsmai.org, Active since 1968, the Arizona Chapter is HSMAI’s second-largest chapter. Although the main core of membership is hotel sales and marketing professionals, the association serves supplier/partner members such as transportation companies, golf courses, restaurants, convention and visitors bureaus, entertainment companies, 90

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entertainment venues, photographers, public relations/marketing companies, as well as student and faculty from local colleges and universities. In addition, HSMAI is the only professional association for the hotel revenue management professional. The Arizona Chapter has been recognized as the most award winning HSMAI chapter of all time and was recognized as HSMAI’s 2015-16 “Chapter of the Year." Its chapter offers members a variety of benefits including monthly education programs targeted specifically to the sales and marketing and revenue management professional, a variety of networking and fundraising events, leadership development training and community service volunteer opportunities. The bottom line … HSMAI provides member companies with added and measurable value. For more information, contact Executive Director Joanne Winter at 602-240-5552 or visit the chapter website athsmai-az.org.

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VISIT GLENDALE

ON THE

MOVE

Visit Glendale hopes to drive tourism from its new high-profile location at Westgate

By DEREK HALL

he offices of Visit Glendale are relocating from downtown to the Westgate Entertainment District to be in the thick of tourism and convention business. Glendale City Manager Kevin Phelps said the move was planned for March 1, and the West Valley’s convention and visitors bureau will share the space with AEG Facilities, the company currently managing Gila River Arena. “Being right there in that area, to be able to meet with the marketing staff from the stadiums and the venues, to be able to work with the Renaissance Phoenix Glendale Hotel & Spa and convention center ... we think that’s the right place to be,” Phelps said. The city will also be establishing a second visitors’ center in the area, but Phelps said the move is more about getting convention bureau staff closer to the hotels and venues that are driving economic growth for the city.

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“I believe an organization like a CVB needs to be highly relational,” Phelps said. “You need to understand who all the players are.” Visit Glendale’s move to the new location is part of a bigger strategy: A vision for the city that Phelps said he began laying out to the staff about a year ago. A BROADER VISION When Phelps was appointed as the top executive for Glendale in November 2016, the city council wanted him to take a closer look at some specific items, with Visit Glendale being one of them. The convention bureau was functioning as a merchant manager for the downtown area, a role that didn’t make sense from an economic development perspective, Phelps said. “No fault to them. I think they were trying to help and trying to do good things, but I think it really took their eye off the focus of what we need to do to attract major conventions and tourism activities here in the area,” Phelps said. Shifting that focus has been a multi-step process, Phelps said, beginning with the creation of a new partnership with Glendale’s Chamber of Commerce.

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“Our team works really hard, but you have to continue to evolve in a changing market, and this market’s changing a lot” — Kevin Phelps

A NEW PARTNERSHIP TO REVITALIZE DOWNTOWN Glendale Chamber of Commerce President and CEO Robert W. Heidt, Jr. said there are multiple groups working to make downtown successful, including the convention and visitors bureau, but there’s been a need for clarity and organization to make sure resources are being used in the best way possible. Katy Engels He began talking with city officials more than four years ago to ensure the city and chamber weren’t duplicating efforts, but a partnership didn’t begin to take shape until after Phelps was appointed city manager. Last year, the chamber was tasked with providing a downtown merchant manager, and it hired Katy Engels as director of downtown development. “I sat down and I talked to the merchants and property owners and kind of got the history and the feel for downtown and what Kevin Phelps their visions were,” Engels said. Engels will serve as a liaison for downtown stakeholders, working to improve communication and cooperation within the downtown core, Heidt said. She will also be a single point of contact for business owners in their dealings with the city. “Basically, we’re going to be delivering what I would say is a concierge, white-glove service to those businesses that are here today and those that are yet to come that will be unlike what they’ll receive in any other community throughout the Valley,” Heidt said. Phelps said relocating Visit Glendale will give Engels the opportunity to be successful in her new role as a downtown merchant manager. It will also put Visit Glendale in the best position to refocus its efforts, Phelps said. HEADS AND BEDS A typical convention and visitors bureau focuses on conventions, tourism and visitors, Phelps said. “As a rule, I think that 85 percent of your organization’s activities and efforts should be focused primarily on conventions and tourism, probably in that order,” Phelps said. “The reason why I break it down that way is that typically you want your focus to 94

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Robert W. Heidt, Jr.

Jeff Teetsel

be on heads and beds.” Doing so, Phelps said, puts an emphasis on attracting overnight stays to the city, which contributes to the “bed tax,” a revenue stream that generates approximately $2.7 million per year for Glendale. There’s also the added benefit of providing a steady supply of new customers for the city’s restaurants and retail shops, Phelps said. Previously, too much effort was being put into promoting events designed for area visitors, as opposed to increasing the number of room nights booked in Glendale hotels, he said. “Our team works really hard, but you have to continue to evolve in a changing market, and this market’s changing a lot,” Phelps said. “This is the next step of evolving to be a really important player in the tourism and overnight-stay business in the area.”

ECONOMIC ENGINE Visit Glendale also will benefit from the energy and growth of Westgate and its surroundings, Phelps said. “If we’re working with a potential site selector, to be at Westgate and to see the energy and the excitement of what we have to offer from a location of freeways to the amenities in the area, we think it would do a better job than if you brought them downtown,” he said. In addition to the Gila River Arena and University of Phoenix Stadium, there are a half-dozen hotels within walking distance and more than 20 restaurants and bars within the Westgate Entertainment District, said Jeff Teetsel, development manager of Westgate Entertainment District. Teetsel said Visit Glendale’s move will be positive for both Westgate and the city. “We are, I think, a significant economic engine and showcase for the City of Glendale,” Teetsel said. Phelps agreed and said he wants to focus on strategies that fill up hotel rooms and add value to the investments that are there. “Arguably, there’s not an area in the state of Arizona where more sports and entertainment is taking place than within the Westgate Entertainment District, and we want to continue to build on that,” Phelps said.

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