AZRE November/December 2019 by AZ Big Media

NOVEMBER-DECEMBER 2019

GLOBAL ATTRACTION

ASU's Thunderbird School of Global Management new global headquarters

INSIDE:

AIA Awards p. 38 | Healthcare Building Trends p. 46

Beauty abounds if you look for it

here is nothing more beautiful than what occurs in nature. From the aweinspiring heights and depths of mountains and canyons to the simple beauty of dense forests and flowing prairies that stretch as far as the eye can see. Even our sky, especially here in Arizona, bursts with color and light at different times of the day and night. We are lucky to live in a part of the world that shows us such a variety of beauty in nature. While nature remains unrivaled, there is also a great amount of beauty in man-made environments, and in this issue of AZRE Magazine, we put on display just a small taste of what man can do. Some of the most creative and attractive buildings and interiors are honored each year by the American Institute of Architects (AIA). Inside this edition are photos and information about the winners of the 2019 Arizona Design Awards. These awards showcase the best people and designs from the past year. We also take a look at something very simple, but still beautiful in its own way, being done by Valley companies to provide much-needed living quarters for healthcare workers in Africa; we examine the progress being made on the Sky Train at Phoenix Sky Harbor International Airport; how healthcare services are changing and companies are using smaller facilities to serve patients in a more affordable and less stressful way; and we look at all of the wonderful results that the Arizona Association of Economic Developers have achieved in the past year. And while you may not see parking structures as things of beauty, the newest projects being worked on in the Phoenix market are trying to change your mind. While the standard parking garage has its place in some developments, the modern parking structures being built in urban core developments bring color, texture and aesthetic appeal to the market. Itâ&#x20AC;&#x2122;s amazing how beautiful concrete, steel and wood can be when in the right hands.

Steve Burks Associate editor, AZRE steve.burks@azbigmedia.com

2 | November-December 2019

President and CEO: Michael Atkinson Publisher: Josh Schimmels Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Angelica Olivas | Ane Pulu Contributing writers: Tom Dunn | Sara Fleury Joyce Grossman | Suzanne Kinney ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Marketing & events manager: Keith Chandler Digital strategy manager: Gloria Del Grosso Marketing designer: Michael Bodnar OFFICE Special projects manager: Sara Fregapane Executive assistant: Briana Villa Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry Director of business development: Carol Shepard AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Kim Bailey AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN EXPERIENCE ARIZONA | PLAY BALL Director of sales: Jennifer Swanton RANKING ARIZONA Director of sales: Sheri King

AZRE: Arizona Commercial Real Estate 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 $3.95. Bulk rates available. ÂŠ2019 by AZ BIG Media. All rights reserved. No part of this publication may 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.

ECONOMIC F OR ECA ST

2020

Featuring Keynote Speaker

Elliott D. Pollack CEO of Elliott D. Pollack and Company Teacher, Economist, Consultant & Author

Presenting the Impact Award Jerry Colangelo

Impact Award Recipient Brian Mueller, President of Grand Canyon University

13th Annual IREM/CCIM Economic Forecast Friday, January 17, 2020 Omni Scottsdale Montelucia

Welcome, Check-In and Breakfast: 7:00am to 7:40am

Program:

7:45am to 12:30pm Sponsorship Opportunities Available Contact IREM or CCIM

PHOENIX Join us for the 13th Annual IREM/CCIM Economic Forecast, the premiere real estate event of the year, and get the real scoop from the best minds in real estate. This conference is the destination for all industry professionals seeking the insight & expertise of the leading real estate mavericks and the greatest minds working in real estate today. The IREM/CCIM Economic Forecast is approved for 3 hours of Legal Issues credit.

IREM Registration at: www.iremphx.org

CCIM Registration at:

www.centralazccimchapter.com

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9. 12 $ is or 20. 9 o 0 1 t-d 20 /$ d a 14, s r n be 0 a uary 2 m 0 yn l i c otice Me 14, 2 er Ja o p IM y ft rn n CC anuar nds a t i o hou / a l M J el 72 fu n c nds IRE after o Re a r C efu o t N os 9f oR C 9 N $

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CONTENTS

FEATURES 2 Editorâ&#x20AC;&#x2122;s Letter 8 Trendsetters 12 Executive Profile 14 After Hours 16 New to Market 18 Big Deals

22 Legislative Update

26 Transportation

30 Land Development 38 AIA Awards

46 Healthcare

57 AAED

On the cover:

ASU's Thunderbird School of Global Management new global headquarters 4 | November-December 2019

GO TO store.azBIGmedia.com to purchase subscriptions, digital issues and plaques

COMING MARCH 2020

2020

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• REDEVELOPMENT • RETAIL

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Fifteen industry experts, 30 sponsor companies, and 700 to 1,000 guests will come together for an unforgettable and worthwhile morning of networking and insights that you do not want to miss.

OUR SPEAKERS

ELLIOT D. POLLACK

JERRY COLEMAN

CEO ELLIOT D. POLLACK & CO. KEYNOTE SPEAKER

FOUNDER OFFERPAD “ONE BIG THING” SPEAKER

TROY WAHLBERG

JOHN W. GRAHAM

VICE PRESIDENT ACQUISITIONS & DEVELOPMENT WILLIAM LYON HOMES PANELIST

CHAIRMAN & CEO SUNBELT HOLDINGS PANELIST

ROGER GANNON DIVISION PRESIDENT WOODSIDE HOMES PANELIST

BRETT M. JOHNSON PARTNER & CO-FOUNDER FORTUITOUS PATNERS “ONE BIG THING” SPEAKER

JASON WEBER

VP OF LAND AQUISISTION & DEVELOPMENTCHAIRMAN, MARACAY PANELIST

MARK STAPP

EXECUTIVE DIRECTOR THE CENTER FOR REAL ESTATE THEORY AND PRACTICE, ARIZONA STATE UNIVERSITY “THE AFFORDABILITY CONUNDRUM -SEEKING SOLUTIONS” MODERATOR

JIM BELFIORE

FOUNDER & PRESIDENT BELIFORE REAL ESTATE CONSULTING HOUSING OVERVIEW

SHERYL PALMER CHARIMAN & CEO TAYLOR MORRISON PANELIST

CAROL L. DITMORE DIRECTOR ACQUISITIONS ARIZONA DEPARTMENT OF HOUSING “THE AFFORDABILITY CONUNDRUM -SEEKING SOLUTIONS” PANELIST

JORDAN R. ROSE

FOUNDER & PRESIDENT ROSE LAW GROUP PANELIST MODERATOR

DON MURPHY ARIZONA DIVISION PRESIDENT SHEA HOMES PANELIST

TOM EGAN

PRESIDENT AND CEO THE FOUNDATION FOR SENIOR LIVING (FSL) “THE AFFORDABILITY CONUNDRUM -SEEKING SOLUTIONS” PANELIST

AZDealMakers.com

TRENDSETTERS

Endless Need A new Hoyt Advisory Services Study commissioned by the National Apartment Association (NAA) and National Multifamily Housing Council (NMHC) reveals that the apartment industry and its residents annually contribute $53.8 billion to Phoenix’s economy, $73.2 billion to Arizona’s and more than $3.4 trillion – or $9.3 billion daily – to the national economy. The new report, available at WeAreApartments.org, provides a detailed breakdown of the economic impact nationally, by state, and in 50 metro areas. In Phoenix, the apartment industry supports 284,400 jobs. Other financial contributions break down as follows: resident spending contributes $48.6 billion to the local economy, operations add $1.9 billion, new construction contributes $2.5 billion,

and renovation and repair add $770 million. “As demand for apartments continues to grow locally and nationally, the significant contributions to Phoenix’s economy also increase,” said Courtney LeVinus, president and CEO of the Arizona Multihousing Association (AMA). “Apartments drive our local economy by adding employment opportunities, as well as revenue from resident spending, new construction, renovation and repair, and operations, all of which are positively impacting Phoenix." According to Bloomberg, 200 people on average move into Metro Phoenix on a daily basis. The study also determined that the apartment industry has a major impact on local, state and national tax economies. Locally, tax payments associated with local apartment operations added $360 million and their residents contributed more than $5.5 billion in taxes to the Metro Phoenix economy. These taxes support schools, improvements to local infrastructure and other critical services in Phoenix.

POWER PLAY Newmark Knight Frank (NKF) has released its first half (H1) 2019 Data Centers report, focusing on industry and market trends in 10 top data center markets in the U.S. — Dallas/Fort Worth, New York, Atlanta, Los Angeles, Chicago, Northern California, Seattle, Phoenix, Northern New Jersey and Northern Virginia. NKF’s report elaborates on five major trends impacting data center markets: 1) increasing partnership and competition with cloud providers; 2) the impact of changing technology and how it will drive demand for vast amounts of data storage and processing capacity; 3) increasing computing size and complexity requirements and corresponding improvements to data center infrastructure — both software and hardware systems; 4) how rising chip power and rack density have created a push Phoenix: Market Summary (by MW) 2000 1500 832 1000 500 0

223

Q3 '18

to liquid cooling alternatives and 5) how climate change and sustainability continue to be a major focus for data center operators. “Hot button issues impacting data center operation and development include environmental changes and new regulatory requirements which necessitate careful thought and consideration,” said NKF vice chairman Victor Frandsen. “Data center vendors and providers are becoming more flexible as they adopt new technologies, while simultaneously responding to changes related to the infrastructure and efficiency of data center operations.” Of those markets, Phoenix is one of the most active and is quickly positioning itself as the next major hyperscale growth market and trails only Northern Virginia as US data center markets with the highest planned power capacity.

•Available Power •Planned Power •Commissioned Power •Under Construction 1198

1012 10

223

Q4 '18

223

Q1 '19

1193 20

238

Q2 '19

(Source: Datacenter Hawk Q2 2019)

8 | November-December 2019

Dr. Sheila Harris named 2019 LAI International Member of the Year Dr. Sheila D. Harris, founding director of the Arizona Housing Finance Authority and former Deputy Chair of the Federal Reserve Bank of San Francisco, has been named International Member of the Year of Lambda Alpha International (LAI).

The winner is selected from chapter nominations of Chapter Member of the Year honorees for the current or prior year by the International Awards Committee. It is based upon commitment to LAI, the nominee’s profession and to land economics with respect to achievement in the private or public sectors, research or education. Dr. Harris, who owns a consulting firm in Litchfield Park, has been a member of the LAI Phoenix Chapter since 2004. She served as Chapter President in 2013, LAI International Assistant Treasurer from 2013 to 2015 and LAI International Treasurer from 2015 to the present. LAI is the honorary society of distinguished professionals in all fields related to the use and development of land. Dr. Harris was to receive the award during the LAI’s semi-annual Land Economics Weekend in Austin, Texas, Nov. 7-9. “It has been my pleasure to have worked with Dr. Harris over the past several years,” said Elliott Pollack, CEO of Elliott D. Pollock & Co., and LAI Phoenix Chapter member. “As the first director of the Arizona Department of Housing, she was able to accomplish far more than would normally have been expected because of her ability to understand the issues and effectively communicate them while navigating through the bureaucracy with unusual skill.”

Avondale The elevation of pickleball reimagines city core After months of stakeholder input, public meetings and hearings, the Avondale City Council recently approved a new specific plan for its city core, formerly known as Avondale City Center. Rebranded as The BLVD (The Boulevard), the revised specific plan now covers 356 acres running along Avondale Blvd., comprising six trendy district concepts for shopping, dining, entertainment and living, with pedestrian-friendly street and outdoor activities.

The new and improved plan allows for incremental development to address market demands, reduced regulations, along with public-private development partnership opportunities. Along with the City’s economic development toolbox for streamlined approvals and business assistance programs, The BLVD will be one of the West Valley’s newest exciting mixed-use destinations for developers. “The plan was updated to reflect the evolving market and other conditions, while fulfilling the Council’s vision and expectations for a quality unique and pedestrian friendly area that will attract future development,” said Jodie Novak, assistant director for Development and Engineering Services. The six districts are the Gateway District, which runs along I-10. This district will feature hotels, office, retail and restaurants, along with medical and education campuses. The Residential District will have singlefamily and multifamily housing, as will the Neighborhood District, which will also have some commercial developments. The heart of the BLVD is the Park Avenue District, which will have community events areas, sports and entertainment venues, mixed-use, retail, office, education and multifamily elements. The Promenade District will be commercial space, with retail and office elements planned and the Village District will have a true mix of elements, from office to retail to multifamily to education.

With land becoming scarce in Tempe and prices going up, it’s imperative for any new development to get the most out of every square foot of property. Friendship Village, a Life Care Services community in Tempe, is in the midst of launching a six-phase, nearly $200 million expansion on its 50-acre campus. Ryan Companies US, Inc. is working with Friendship Village on the design and construction of the expansion, with work expected to begin in November. A unique way that Friendship Village plans to maximize its space and add some unique amenities is by utilizing the rooftops of the planned buildings. They are planning for pickleball courts, an 18-hole putting course, a driving range and a rooftop brewpub. “We like to say that Friendship Village has more fun per square foot than any senior living community in the country,” Friendship Village executive director Cole Marvin says. This new expansion will provide more entertainment options for the residents of Friendship Village, and Marvin, who is always

MORE ABLE

Willmeng Construction Inc. created more space for Able Aerospace Services. The $9 million expansion at Able’s headquarters at Phoenix-Mesa Gateway Airport was recently unveiled to the community. Willmeng worked closely with Able to construct the 60,000-square-foot expansion which adds to their existing 200,000-squarefoot, state-of-the-art campus. The challenge included creating a space that incorporates new technology into its industry-leading aircraft component repair and overhaul process, and to diversify into new product and service offerings, including aftermarket support for large-scale rotor-wing and commercial fixed-wing components. Adaptive Architects of Mesa was the architectural firm. “We are honored to work with Able Aerospace on such an important project for the East Valley, knowing its economic impact and contributions to the future growth of this area as an industry leader,” said James Murphy, Willmeng president and CEO. The Able expansion is just one of several aviation projects completed by Willmeng

in search of ways to continue Friendship Village’s legacy as a progressive community, is doing more than just providing a place to play. As part of what he refers to as “Senior living shouting from the rooftops,” Marvin’s vision of an amenity atop every building on the Tempe campus is coming to fruition.

Construction, including several others at Phoenix-Mesa Gateway Airport. They have also done multiple jobs, from ground up to tenant improvement projects, at Phoenix Sky Harbor International Airport. Working in this environment requires careful planning and coordination with multiple stakeholders and Willmeng is well-suited for this type of work, enjoying success on recent projects at both airports. Additionally, they are currently completing preconstruction and preparing to break ground on a new terminal at Prescott Regional Airport.

Jimmy Lindblom, Willmeng; Michael Vercio, Able Aerospace Services; Mayor John Giles, City of Mesa; Brad Thress, Able Aerospace Services; James Murphy, Willmeng; Brian O’Neill, PhoenixMesa Gateway Airport at Able Aerospace Services facility expansion. 9

TRENDSETTERS

Perfect Match In a truly unique strategic partnership, Colliers International in Arizona and ReStore Agency are teaming up in what they hope will be a mutually beneficial and productive relationship. ReStore Agency is a full-service, turn-key renovation company that works on projects

large and small in the hospitality sector. ReStore evaluates what improvements are needed at a hospitality property, and serves a variety of functions to get the property looking and operating its best. One scenario would be if Colliers International purchases an existing hotel. ReStore would come in,

TEAMING UP FOR THE NEXT GENERATION The Central Arizona chapter of CCIM, commercial real estate’s global standard for professional achievement, is proud to announce it is launching the first session of a mentorship program for undergraduates attending the Colangelo College of Business at Grand Canyon University. The goal is to connect students with commercial real estate executives. Mentoring activities over the fall semester at GCU include reviewing property information for analysis, students creating and presenting a broker opinion of value, listing pitches and sales offering memorandum and attending both the chapter’s annual golf fundraiser and holiday party. An introductory and speed networking event held in September at GCU attracted 45 students. The initial goal was 30. “Our chapter’s mission is to provide premier commercial real estate education. Through this mentorship program, we are going 10 | November-December 2019

back to the foundation of our community in college undergrads to help provide current and relevant education, networking, and exposure to all facets of the industry,” said chapter president Jenette Bennett, CCIM, of

evaluate, plan and execute the renovation of that property, making it more valuable on the market. ReStore Agency also implements concept to reality for branding, design, FF&E procurement, installation and construction. “With decades of expertise in the repositioning of assets, we are excited to offer effective and creative solutions to Colliers International properties and expand their services. We focus on project delivery within budget and we strive to exceed the quality that brands and owners expect,” said Valerie Griggs, founder of ReStore Agency. For Colliers International, having a partner that can take the lead on repositioning hospitality products is a valuable tool. “This partnership allows us to offer a substantially enhanced level of services to our hospitality clients,” says Jon Grantham, associate vice president of Colliers International in Arizona. “Frequently the assets we market for sale are poised for strategic renovation and re-positioning. Enhancing the property prior to sale or assisting buyers to envision future potential in an asset, enables us to better serve the property and the parties involved.”

Kidder Mathews. “This is just the start. We are looking forward to more collaboration between universities and CCIM as we expand the program in future semesters.” Mentors from the Central Arizona chapter of CCIM include Julie Johnson, Colliers International; Todd Hamilton, Citywide Commercial; Nick Miner, Orion Investment Real Estate; Heather Fox, CBRE; Scott Fey, Omni; Jim Kasten, Kasten Long Commercial Group; and Bennett. All the mentors hold the prestigious CCIM designation.

Undergraduates at Grand Canyon University’s Colangelo College of Business attend an introductory event for a mentorship program with the Central Arizona chapter of CCIM. (Photo courtesy of CCIM)

Thinking inside the box Jamie Nollette, a business development professional for DIRTT Environmental Solutions in Phoenix, has been traveling to Africa to do humanitarian work for more than a decade. All of her trips to Africa led her to create her own organization, Pipeline Worldwide, which serves as the conduit for facilitating connections between donors and vulnerable communities in East Africa, most notably Uganda. During her travels, Nollette learned that the shipping containers used to bring over much-needed medical equipment and supplies, would be discarded. Containers

are rolled into ditches or valleys and very few are used for anything meaningful. Nollette hatched an idea that could help the communities in Uganda in two ways. Pipeline Worldwideâ&#x20AC;&#x2122;s idea, the Battle of the Boxes, will do two things: Deliver medical equipment and supplies, as well as provide much-needed housing for medical workers. The objective of the Battle of the Boxes project is to create affordable housing options out of these 40-foot shipping containers, Three teams, which are made up of representatives from fields such as educational, development, construction, design, sustainable energy and more, will design and plan living quarters from the containers, while only using up 30 percent of the space (the majority of the space will be needed for shipping supplies). There will be a master plan team that provides plans for the container site layout (how the containers will be arranged when they arrive on site), outdoor living space and exterior design. The other three container teams will design and convert their container into sleeping quarters for six healthcare staff. All of the teams have a budget of $15,000 (money they will provide themselves), and all of the materials and equipment needed to construct the project must be available in Uganda, or alternatives available in Uganda must be included in the instructions. Other rules include no holes can be drilled through the shell of the container, each container will need an off-the-grid power source and each container must be insulated to keep the temperature comfortable. The goal of the project is to be able to replicate the container conversion in

Uganda and give the people there clear and easyto-understand instructions so they can convert containers into living quarters. The contest runs until May 7, when Pipeline Worldwide holds its annual Getting WELL Connected event. The containers will all be shipped to Uganda later in May and Nollette is taking a group of participants to Africa in July to see the containers in use. For more information, visit pipelineworldwide.org

BATTLE OF THE BOXES

Three teams made up of educational, architectural and design and construction entities are joining forces to create affordable housing options out of 40-foot shipping containers which will address the significant need to provide staff housing for refugee settlements in Uganda. Here are the teams: Team 1: ASU Polytechnic College, EVIT, DMB, McCarthy Building Companies, DWL, Clearway Energy, and HonorHealth Team 2: GCU, West MEC, Alter Group, McCarthy Building Companies, Wespac, Corgan, Wood Patel, SMIL, and Vizient Team 3: ASU (Architecture), RED Development, Sundt, Cuningham Group, Westwood, Goodmans, Smith & Nephew, and SurgCenter Development * Kelly Davis of Northern Arizona University will be doing Quality Assurance for all three projects.

BIG THINGS, SMALL SPACES: A shipping container that delivered medical supplies to Uganda was converted into a bunkhouse for farmhands in Gulu, Uganda. Pipeline Worldwideâ&#x20AC;&#x2122;s Battle of the Boxes will convert three shipping containers into living quarters for workers at refugee centers in East Africa. 11

EXECUTIVE PROFILE

FUTURE FOCUSED Dinan embraces technology to position Bel-Aire Mechanical for lasting success By STEVE BURKS

ames Dinan is proof positive that the adage, “you can’t teach old dogs new tricks” just doesn’t work in today’s construction industry. Dinan, a 44-year veteran of the mechanical industry and one of the founders of Bel-Aire Mechanical back in 1986, is as old-school as they come. But when it comes to embracing modern technology like BIM modeling, virtual reality and drone usage, Dinan is all in. As president and chief executive officer for Bel-Aire, Dinan has helped the company grow into the largest, privately held mechanical contractor in the state of Arizona. They are well-regarded in the industry for their work on healthcare projects, as well as data centers. Bel-Aire has served as mechanical contractor and maintenance service provider for companies like St. Joseph’s Medical Center, Wells Fargo and Banner. “Right now we have seven different data centers going on,” Dinan said. “We do much more mission-critical facility work than we do hospital work, and we do a lot of hospital work.” Bel-Aire has worked on some marquee projects in the past 10 years, even thriving during the last Great Recession of the mid- to late-2000s. They did work on the University of Arizona Cancer Center in Phoenix, the MD Anderson Cancer Center in Gilbert and the Banner University Medical Center in Tucson. Dinan began his career path at a young age, working for the father of one of his friends when he moved to Phoenix at age 13. He started welding

12 | November-December 2019

at that young age, and worked all through high school. “I actually went into the sheet-metal workers, instead of the pipe fitters and plumbers,” Dinan said. “But I went in as a welder. That’s really how I got into this industry; as a welder. So I served a union apprenticeship with the sheet metal workers and my second-year instructor really liked me.” After he became a journeyman sheet-metal worker, that same instructor called one day and wanted to meet. “So I go into his office and he starts talking,” Dinan said. “He said, ‘Hey, I think we should start a business.’ ” That business was Bel-Aire Mechanical and in the early years the company’s main clients were hospitals and banks, which provided a lot of opportunity in the late 80s and early 90s. Throughout the growth of the company, Bel-Aire has always tried to be at the forefront of industry technology. Coming through the ranks as a welder, Dinan is focused on the welding aspect of the business and takes great pride in that part of the company. “We have the most automated shop in the state,” said Dinan of the 7-acre facility the company purchased in 2005 and have since nearly outgrown. “We have robotic welders. Our pipe fitters are in our shop, they are excellent at what they do, but we have automated pipe cutters, they tack it up, square it up and we have automated welders. “We have very green job sites, because we’re not bringing all of the extra equipment out to the job site because it’s getting built in my shop.” Dinan estimates that his company prefabricates roughly 95 percent of the plumbing and HVAC elements they install, something the company has been doing for a decade. “Technology changes so fast, but construction is looking for the kind of technology to solve issues for their job sites and one of them is to remove people from their sites and fabricate as much as you can,” said Dinan. “So I

have a 10 year jump on everyone.” As someone who came up through the industry, Dinan understands the kinds of skills needed to have success. His leadership style is no nonsense, but he is not above walking the prefabrication shop or job site and demonstrating how to do a task. “You have to really understand your employees motivation,” Dinan said. “Most people who get into the trades, we hope they want a career. I consider my style to be servant leadership. “My men and women know that there’s not any tool or any job they have put their hands on that I haven’t done myself. That gives them a very good feeling.” Dinan has been involved in apprenticeship training programs for the mechanical industry, even teaching for 10 years. He has noticed a distinct shift in the apprentices over the past 30 years. In the past, he said he would see young men and women right out of high school come in and fare well, due to industrial arts programs in the schools. He said back then, those apprentices weren’t interested in college, and instead wanted to jump right into the workforce and had the basic hand skills at an early age. Today, Dinan sees more people who have taken the college route and have found it wasn’t the right direction, but not before racking up some college loan debt. This new generation of workers may not have the hands-on skills that previous generations learned in wood shop or auto body shop, but they score higher on aptitude tests (especially in math and language) and are very comfortable with the latest technology in their hands. “When you interview them, you find that, No. 1, they are very techie. They are technologically savvy,” Dinan said of the young people entering the field. “Our job is to look into them and see if we can teach them those other hand skills inherent with putting sheet metal together, combining pipe or running a plumbing riser. “With this younger generation, the hand skills aren’t quite as much there, but the thirst for the technology is there and they are already so far ahead in that side of the industry.”

AFTER HOURS

Master of all trades By ALYSSA TUFTS

t can be hard to keep track of all Andrea Davis does in her spare time: attending events, trying new restaurants, playing tennis or enjoying the outdoors, and she balances all of it with ease. AZRE Magazine sat down with Davis, CCIM, CEO and designated broker of Andrea Davis CRE, at The Venue, a historically-rich property in Old Town Scottsdale that has been host to weddings, comedy stand up nights, proms, business meetings and conferences, about the Scottsdale resident’s journey from New York to Arizona, how she spends her time outside of work with family, engaging in outdoor sports and participating in events around the Valley. Davis came to Arizona in 1993 from New York. Her culturally-rich background includes cooking, print, showroom and runway modeling and acting in New York City; she is a graduate

14 | November-December 2019

of the Culinary Institute of America and modeled for Halston and Levi’s. What influenced her decision to leave New York’s 24/7 environment for sunny Arizona? “I kind of got burned out, so I came out to Arizona to chill and I thought, ‘what better way to do that?’ I can work in the evenings and I can sleep or play during the day.” Davis found just that opportunity. While working at the Marco Polo Super Club, she served a table with Canadian developers and after striking up a conversation, found they were looking for an executive assistant. After learning about the real estate industry as an executive assistant for three years, the company underwent changes and Davis had to choose the next steps in her career. She decided she wanted to be in brokerage, as she saw people who were successful in that niche; she worked at a small boutique firm then worked at Caven Commercial,

Shea Commercial and NAI Horizon, established Andrea Davis CRE in 2012 and began branding and marketing her company in earnest in 2016. “What brought me to my own boutique firm was because my 8-yearold came to me one day and said, ‘Mommy, I don’t see you anymore,’” and that broke my heart. So I said, ‘I’ve got to go,’ and that’s what I did, I gave a two week notice and I opened my own firm.” To say Davis keeps busy in her spare time is somewhat of an understatement. She not only belongs to two tennis leagues and does mixed doubles on the weekends, she also hikes, mountain bikes, rock climbs, does ATVing, attends events in the Valley with her family and enjoys helping her daughter with her cosplay costumes for Phoenix FanFest. “There’s quite a few things I do after work because I love life, I spend as much time with my daughter as

I can, she’s 13 now and we do family activities,” Davis says. “I utilize my culinary experience by doing client appreciation dinners. I have about six to 10 individuals come over for dinner and I love putting on that event; that’s really a lot of fun.” Her job also gives her flexibility to spend time with her daughter. “My daughter always comes first. I make sure she has breakfast on the table pretty much every morning before I leave the house, I like to be at school to pick her up. Being a mom is the best thing I’ve ever done, it just means we have to work at different times, I work a nine-10 hour day, but I’m still able to give my daughter as much time as I feel she wants and needs.” Davis also wrote a book called “SimpLEASEity,” a guide to successful commercial real estate leasing which launched in September this year. Davis says the book was driven by her clients

and broke down the complex process of real estate leasing into 11 simple steps that include defining terms, who to connect with and uses stories as examples. When she’s not entertaining clients at appreciation dinners, playing tennis or enjoying one of many events in the Valley, Davis and her family also explore Arizona’s many breathtaking landscapes through various outdoor activities. “My family loves going to Greer, AZ in the White Mountains to unplug and ride fox trotters at our friends ranch, Hidden Meadow. We ride for hours in the middle of nowhere,” Davis says. “That’s great because as a mom, I always want my daughter to know what it is to unplug; to me it’s well worth it because my daughter knows what nature is and I think every child should experience that firsthand.” While Davis says her love of outdoor sports in Arizona is what originally drew her to the state, she enjoys the wide array of dining options and attending

ANDREA DAVIS: Just a few of the activities that Davis does in her spare time include riding a fox trotter at Hidden Meadow Ranch in Greer, AZ, hiking with her family at Bryce Canyon National Park in Utah and playing tennis at DC Ranch Village Health Club in Scottsdale.

events such as the Renaissance Festival. “From water activities to hiking, mountain biking and rock climbing, I’ve done it all and do as much of it as I still can. We have a lot of wonderful dining choices with different cuisines, some of my favorites are Durant’s, Spiga Cucina Italiana and most Asian infusion restaurants. I love Scottsdale events such as Canal Convergence, I love the parades we have here, as much as I can we participate in all of it, whether it’s the culinary festivals, rodeos, BarrettJackson, The Phoenix Open, I mean, how can you say no to any of that?” 15

NEW TO MARKET A

HIGHER EDUCATION A ARIZONA STATE UNIVERSITYâ&#x20AC;&#x2122;S THUNDERBIRD SCHOOL OF GLOBAL MANAGEMENT GLOBAL HEADQUARTERS DEVELOPER: Arizona State University GENERAL CONTRACTOR: Okland Construction ARCHITECT: Jones Studio LOCATION: 401 N. 1st St., Phoenix SIZE: 111,000 SF VALUE: $75 million START/COMPLETE: Oct. 8, 2019/ April 2021

16 | November-December 2019

MULTIFAMILY B THE FILLMORE DEVELOPER: High Street Residential GENERAL CONTRACTOR: Chasse Building Team LOCATION: SEC of 5th Ave. and Fillmore St., Phoenix SIZE: 533,460 SF VALUE: WND START/COMPLETE: September 2019/ September 2021

ENTERTAINMENT C MAVRIX DEVELOPER: Mavrix One, LLC GENERAL CONTRACTOR: A.R. Mays Construction LOCATION: 9139 Talking Stick Way, Scottsdale SIZE: 44,855 SF VALUE: $4.5 million START/COMPLETE: June 2019/ December 2019

EDUCATION D PAT TILLMAN MIDDLE SCHOOL DEVELOPER: Balsz School District GENERAL CONTRACTOR: McCarthy ARCHITECT: DLR Group LOCATION: 4309 E. Belleview, Phoenix SIZE: 70,000 SF START/COMPLETE: August 2019/October 2020

MULTIFAMILY E NEVADA STREET & COMMONWEALTH AVENUE APARTMENTS DEVELOPER: DBM Ventures GENERAL CONTRACTOR: LGE Design Build ARCHITECT: LGE Design Group LOCATION: SEC of Nevada St. and Commonwealth Ave., Chandler SIZE: 231,300 SF VALUE: WND START/COMPLETE: Q1 2020/Fall 2021

OFFICE F UNION PHASE 1 DEVELOPER: Lincoln Property Company GENERAL CONTRACTOR: Layton Construction ARCHITECT: DAVIS BROKERAGES: Cresa, Cushman & Wakefield LOCATION: Cubs Way and Riverview Auto Dr., Mesa SIZE: 232,000 SF VALUE: WND START/COMPLETE: October 2019/Q1 2021

JW Marriott Desert Ridge Resort & Spa fetches record $602 million By STEVE BURKS

t was a deal that grabbed everyone’s attention, but not one that shocked the market experts that saw how strong the Phoenix hospitality sector really was. In September, the JW Marriott Desert Ridge Resort & Spa was sold for $602 million to a joint venture between Trinity Real Estate Investments LLC and Elliott Management Corporation. This large-scale investment duo snatched up the property in the biggest resort sale in Arizona history. “When you see a big transaction like that, you take note,” said Jennifer Bergamo, vice president with the CBRE Hotel Group, which is based in Phoenix. “A few years ago, the Phoenician traded and the Hyatt Gainey and Royal Palms and the Biltmore, so there has been significant traction and these were all trades after the Jennifer Bergamo downturn. “It’s definitely an exciting time for the Valley in real estate, but particularly for hospitality.” While the brokerage firm that worked on the deal will not be released due to confidentiality clauses, Bergamo noted that she and CBRE had just completed a pair of sales for fullservice, branded hotel properties in Q3. She said that the market fundamentals are very strong, making these properties very attractive to the kinds of investors she is seeing. “The Valley was the last market to recover during the downturn, so there’s just a lack of new supply and we have a quality labor pool that’s

18 | November-December 2019

highly educational and we have strong performing fundamentals in the existing hospitality assets,” Bergamo said. “(On the deals I recently closed), it was a who’s who list of hotel investors, institutional players, private equity and REIT’s coming through the Valley to take a look at these assets. I think we had more than 30 tours at each property, which really is an indication of the desirable market that we have.” Spanning 396 lush acres in North Phoenix, the JW Marriott Desert Ridge Resort & Spa features a 950room hotel, 212,500 square feet of flexible meeting space, seven food and beverage options, and numerous amenities including five pools, a lazy river, a world-class spa, and two championship golf courses designed by Arnold Palmer and Nick Faldo. The luxury complex, which also boasts the largest ballroom in the state, is considered one of Arizona’s premier resorts and was ranked by U.S. News & World Report as one of the best hotels in Phoenix for 2018. “We are pleased to continue our strategic partnership with Elliott through the acquisition of another world-class resort destination,” said Sean Hehir, managing partner of Trinity. “Importantly, we managed to purchase this trophy asset at an attractive basis well below replacement cost, reflecting our ability to source and close deals that align with our strict investment parameters. We look forward to applying our proven value-add platform to drive enhanced operational and financial performance.” Situated in one of the nation’s fastest growing cities, the Resort is well positioned to benefit from demand drivers for business and leisure travel due to Phoenix and Scottsdale’s strong economic growth and rising competitiveness in the group and convention market. Due to its geographic proximity and access

to markets throughout California and the Southwest, Phoenix serves as the primary commercial and cultural hub of the Southwest United States and is a preferred business destination. Tim Mackey, portfolio manager at Elliott responsible for commercial real

estate in the Americas, added, “Elliott is pleased to close another major transaction with Trinity, a globally recognized hospitality investor and actively engaged asset manager. Desert Ridge is a strategic complement to the Grande Lakes Resort in Orlando, Florida, which we acquired with Trinity in December 2018. Large luxury group-business resort and conference center properties continue to be attractive investment opportunities. The JW Marriott Phoenix Desert Ridge Resort & Spa is a market leader in terms of number of rooms, meeting room space, location, and quality.”

In 2018, hospitality transaction activity increased in the market, with portfolio sales representing a significant portion of the increase. The sale of the Waldorf Astoria Arizona Biltmore for $400,000,000 represented the top singleasset and overall highest transaction last year. Non-portfolio sales volume kept pace through the first quarter of 2019, with the sale of the boutique Clarendon Hotel in Central Phoenix representing the largest price-per-key transaction at just under $184,000 per room. Bergamo said that 2019 is looking like it will be even stronger than 2018,

with RevPar (revenue per available room) expected to increase four percent. And for 2020, the numbers look strong as well, with the Phoenix market on pace for an increase in occupancy rates and average daily rates. “To put that in perspective, the national projection for RevPAR growth is .9 percent,” said Bergamo. “That tells an investor that there is opportunity for growth and, we’re priced in a way that is more palatable than major East Coast markets or coastal markets. Barring a major catastrophe, I think we’re well poised for a solid year ahead.”

MULTIFAMILY/SALES

$115M | 260,000 SF STERLING 920 TERRACE 920 S. Terrace Rd., Tempe BUYER: Coastal Ridge Real Estate SELLER: The Dinerstein Companies BROKER: N/A

$110M | 477,010 SF

$100M | 695,138 SF

$85.75 | 450,880 SF

$85.4M | 473,000 SF

BISCAYNE BAY 300 E. Warner Rd., Chandler BUYER: MG Properties Group LP SELLER: Alliance Bernstein LP BROKER: CBRE AVENTERRA AT DOBSON RANCH 1960 W. Keating Ave., Mesa BUYER: BH Management Services SELLER: The Blackstone Group LP BROKER: CBRE

SAN VALIENTE 2220 W. Mission Ln., Phoenix BUYER: The Blackstone Group LP SELLER: Millburn & Company BROKER: CBRE

THE POINTE AT THE FOOTHILLS 4424 E. Baseline Rd., Phoenix BUYER: Bridge Investment Group SELLER: NexPoint Residential Trust BROKER: CBRE

RETAIL/SALES

$15.6M | 66,323 SF

SCOTTSDALE NORTH MARKETPLACE 31307 N. Scottsdale Rd., Scottsdale BUYER: Epic Real Estate Partners SELLER: ValueRock Realty Partners BROKER: Newmark Knight Frank

$13.6M | 33,374 SF

13220 N. Scottsdale Rd., Scottsdale BUYER: The Related Companies SELLER: Neilson Hammer BROKER: N/A

$13.1M | 153,740 SF

THE GROVES 1110 W. Elliot Rd., Tempe BUYER: N/A SELLER: At Home BROKER: Cushman & Wakefield

20 | November-December 2019

$13.5M | 74,240 SF

CHAPMAN AUTOPLEX 6601 E. McDowell Rd., Scottsdale BUYER: JLB Partners LP SELLER: Chapman Auto Group BROKER: N/A

$9M | 54,065 SF

AHWATUKEE MERCADO 4623 E. Elliot Rd., Phoenix BUYER: Westwood Financial LLC SELLER: TPP 202 Ahwatukee, LLC BROKER: CBRE

Itâ&#x20AC;&#x2122;s the big deals and the brokers who close them that make the market an interesting one to watch. Here are the top notabe sales for the months of September and October. Sources: Daniel Zawisha at Cushman & Wakefield Research.

OFFICE/SALES

$72M | 262,090 SF

WAYPOINT CAMPUS 1130 and 1150 N. Alma School Rd., Mesa BUYER: Innovatus Capital Partners, LLC SELLER: Harvard Investments BROKER: CBRE

$66.5M | 373,013 SF

U.S. BANK CENTER 101 N. 1st Ave., Phoenix BUYER: Black Salmon Capital SELLER: ScanlanKemerBard Companies BROKER: Eastdil Secured, LLC

$51.5M | 136,862 SF

NORTHSIGHT CORPORATE CENTER 14400 N. 87th St., Scottsdale BUYER: CIM Group, LP SELLER: Crow Holdings BROKER: CBRE

LAND/SALES

$39M | 199,326 SF (4.57 ACRES)

$60.2M | 218,387 SF

CAMELBACK ESPLANADE III 2415 E. Camelback Rd., Phoenix BUYER: C-III Capital Partners LLC SELLER: Crow Holdings BROKER: CBRE

$37.7M | 124,879 SF

CHAPARRAL COMMERCE CENTER 5801 N. Pima Rd., Scottsdale BUYER: Griffin Capital Essential Asset REIT SELLER: Ryan Companies US, Inc. BROKER: Cushman & Wakefield

INDUSTRIAL/SALES

$70M | 901,700 SF

920 S. Terrace Rd., Tempe BUYER: Safehold Inc. SELLER: Coastal Ridge Real Estate BROKER: N/A

LINCOLN LOGISTICS 40 575 S. 143 Ave., Goodyear BUYER: NIKE, Inc. SELLER: Lincoln Property Company BROKER: CBRE

$37.37M | 8,145,720 SF

$57.7M | 267,606 SF

$29.2M | 4,312,440 SF

$47.4M | 394,775 SF

$25M | 122,752,080 SF

$46M | 552,330 SF

(187 ACRES) NWC of Sossaman Rd. and Elliot Rd., Mesa BUYER: Google Inc. SELLER: Morrison Ranch Inc. BROKER: CRA, Ltd. (99 ACRES) S. Arizona Ave. and E. Riggs Rd., Chandler BUYER: Lennar SELLER: Bell Leasing Inc. BROKER: N/A (2,818 ACRES) 24216 N. 264th Ave., Buckeye BUYER: LKY Development Company SELLER: Glen Spurlock BROKER: Land Advisors Organization

$19.61M | 4,056,307 SF (93 ACRES)

NW E. Elliot Rd. and S. Signal Butte Rd., Mesa BUYER: RagingWire Data Centers SELLER: LKY Investments LLC BROKER: JLL

HENSLEY & CO. 4201 N. 45th Ave., Phoenix BUYER: Broadstone Real Estate LLC SELLER: Angelo, Gordon & Co. BROKER: N/A

43RD AVENUE LOGISTICS CENTER 1635 S. 43rd. Ave., Phoenix BUYER: Vital Pharmaceuticals Inc. SELLER: Cohen Asset Management Inc. BROKER: N/A

CAPITOL COMMERCE CENTER 7037 W. Van Buren St., Phoenix BUYER: Stockbridge Capital Group, LLC SELLER: Westcor Properties BROKER: Eastdil Secured LLC

$34.7M | 329,400 SF

TOLLESON LOGISTICS CENTER 200 N. 99th Ave., Tolleson BUYER: Cohen Asset Management SELLER: Trammell Crow Company BROKER: Cushman & Wakefield 21

LEGISLATIVE UPDATE

Supressing the Boom A

mericans agree that Arizona is a great place to do business. Arizona’s economic boom is dependent on our continued business-friendly environment and the skilled workforce required to meet market demands. Businesses and their employees are leaving poor business climates to the bright future offered in sunny Arizona. Commercial construction has benefited substantially. Not only is construction benefiting from the boom, commercial construction is a significant contributor to the state’s success in attracting business development. Arizona’s 2018 GDP growth rate registered at 4.0 percent in inflationadjusted real dollars. That was the fourth highest rate of any state and substantially better than the national rate of 2.9 percent. Construction contributed 4.1 percent of real GDP in the U.S. and 4.8 percent in Arizona, one of the highest shares among all states. People and jobs are coming to Arizona at a strong pace. In a single year, 2018, the population increased by almost 123,000 or 1.7 percent, triple the U.S. growth rate of 0.6 percent. They’re attracted in part by a steady stream of employers starting, expanding or relocating business from other states. With new residents to Arizona, comes their demand for private and public construction. They need houses, roads, data centers, buildings, apartments, schools, hospitals, places

22 | November-December 2019

Tom Dunn ABA

of worship and much, much more. Nonresidential private ($4.0 billion) and public ($4.1 billion) spending hit impressive numbers in 2018. Both private and public construction is important to Arizona’s continued economic cycle. Without infrastructure, housing, hotels, hospitals and places of employment, Arizona won’t be able to attract new residents, visitors or firms. Unless the state invests in schools, transportation and water infrastructure, Arizona will lose the advantages that are attracting existing and new residents and businesses. Labor markets and the competition for skilled workers is a looming concern. For Arizona to keep up demand for all types of construction, we need skilled workers to do the job. Arizona’s construction rate (11 percent) is growing at four times the national average. It is difficult to keep up the pace. In a recent workforce survey, 95 percent of Arizona contractors reported

having a hard time filling hourly craft positions and 85 percent reported the same for salaried positions. One reason firms are having difficulty filling positions is that the local pipeline for training workers is inadequate. Nearly two-thirds (62 percent) of Arizona contractors said the local pipeline for supplying well-trained craft personnel is poor, compared to 45 percent of firms nationally. These staffing challenges create issues for public and private owners as well as contractors. More than half of Arizona contractors said they had put higher prices into their bids or contracts as a result of staffing challenges, and 41 percent said they had lengthened the completion times they quote. Commercial construction is contributing to Arizona’s prosperity, growth and future economic prospects, even as the industry has benefited from the state’s attractiveness as a location to live, work and do business. The boom may fizzle if the state does not take the correct steps to provide adequate career and technical education enabling new and career-changing workers with the skills we need. Tom Dunn is president of the Arizona Builders Alliance. The ABA is the horizontal commercial construction industry’s leading advocate at the state legislature. ABA’s membership consists of general contractors, specialty contractors and industry partners with more than 300 member firms active at the chapter.

talent. Supporting a healthy innovation pipeline and a robust internship and craft training ecosystem have verifiable impacts on the overall economic health of our state. A qualified workforce with a balance of post-secondary education and workforce training will support Arizona’s competitiveness in the retention and attraction of high wage jobs.

RETAIN AND MODERNIZE EXISTING ECONOMIC DEVELOPMENT PROGRAMS For Arizona to remain competitive amid an ever-changing global economy, the State must continue to evaluate its economic development programs. Programs should reflect the State’s focus for business attraction, growth, and retention when compared to other parts of the world. AAED membership opposes any unnecessary changes that reduce or delay existing and proven economic development tools and programs. Many companies choose to relocate to Arizona or expand in the State because of these programs. The need to remain consistent and competitive is critical to Arizona’s long-term economic development success. Creative programs that incentivize business creation and expansion enhance the state’s appeal both nationally and globally.

AAED’s 2020 policy priorities strengthens Arizona’s economy

rizona’s economy boomed in 2019. The State is on track for a second year to have a record financial surplus. Job creation has been riding a high with Arizona ranking No. 2 in the U.S. for year-over-year job growth. Building cranes can be seen in the air of many larger communities. Across the state, economic developers have been extremely busy this past year. But this is not the time to be complacent and rest on our laurels. Therefore, the Arizona Association for Economic Development (AAED) is proposing policy priorities for 2020 that will ensure economic developers’ ability to continue to strengthen Arizona’s economy throughout the whole state, metro and rural. AAED urges the Legislature to support legislation that enhances Arizona’s competitive position

FUND TRANSPORTATION AND BROADBAND INFRASTRUCTURE

Joyce Grossman AAED

in attracting and retaining wealth generating businesses and high wage jobs.

ENSURE A QUALIFIED WORKFORCE AND WORKFORCE PIPELINE AAED supports sustainable policies and funding for education programs that result in a thriving qualified Arizona workforce. In recent years, Arizona has made strides in increasing education funding. It is a positive start to a continuing legislative dialogue for high-quality educational systems that will provide Arizona with an additional asset when attracting companies and

AAED supports mechanisms that encourages the development, maintenance, and improvement of infrastructure that results in business development and job creation. Technological advances must be included when considering transportation needs. Autonomous transportation and “Smart City” technologies have tremendous economic development potential for Arizona and its businesses. In addition to properly funding the Highway User Revenue Fund, AAED urges the Legislature to explore sustainable ways to meet future transportation and broadband infrastructure needs to maximize Arizona’s economic competitiveness. If you would like to partner in strengthening Arizona’s economy, consider joining AAED today at aaed.com. Joyce Grossman, AZED Pro, is executive director at Arizona Association for Economic Development. 23

LEGISLATIVE UPDATE

Smart Money Education funding must support improved student outcomes without harming economy

igh-quality schools and a skilled workforce are crucial for economic development and for attracting and expanding businesses. NAIOP supports ensuring that Arizona’s K-12, post-secondary and career and technical education systems have the resources they need to improve academic outcomes and increase the number of highly-skilled individuals. NAIOP was proud to support Gov. Doug Ducey’s “20x2020” plan to increase teacher salaries by 20 percent over three years. The 20x2020 plan is underway. However, a growing number of Arizonans support further funding increases for public education. Over the past several months, stakeholders have been discussing where to find new revenue for schools with the goal of putting a proposition onto the November 2020 ballot for voters’ consideration. These discussions have yielded a variety of proposals ranging from a new statewide property tax to increases in income tax or sales tax. Not all taxes are created equal, and some of the proposals that are currently circulating could have a damaging impact on our economy. For years, NAIOP has worked with others in the business community

24 | November-December 2019

Suzanne Kinney NAIOP

to improve our state’s economic competitiveness. These legislative efforts have resulted in lower commercial property taxes, lower capital gains taxes and a number of other improvements. Together, these policies have contributed to our state’s roaring success in attracting new businesses and diversifying the economy. As we look for solutions to further improve education, we must be mindful of this progress and not resort to revenue sources that will take us back in time. Common sense economic principles should guide the proposals that are likely to take shape as we approach the 2020 election. Any proposed new revenue streams

should be equitably applied to all taxpayers and should not place a disproportionate burden on the commercial real estate industry. New expenditures for public education should be targeted to fund priorities and programs that are proven to improve academic outcomes, and should include accountability measures to ensure funds are spent effectively and efficiently. Funding should address labor shortages in construction and the skilled trades by supporting Career and Technical Education and apprenticeship programs. Any changes to the property tax system must include important reforms that provide competitive, equitable and predictable property taxes for all taxpayers. Reforms may include:  Reductions in the commercial property tax ratio to offset any rate increases so that Arizona can remain competitive with other states;  Reform of the school district bond and override system in order to mitigate property tax exposure by taxpayers;  Address other property tax funding that has historically resulted in inequities in per pupil funding. Any proposed new income taxes should not disproportionately fall upon one segment of taxpayers. The majority of businesses in Arizona file personal income taxes rather than corporate income taxes. As such, care must be taken to ensure that small and medium-sized businesses are not harmed by any new income tax schemes. These guiding principles provide reasonable parameters for the important discussions that will be taking place over the next several months. NAIOP looks forward to being a part of constructive discussions aimed at finding sustainable solutions to funding public education in a way that will enhance our economic competitiveness and improve academic outcomes for students. Suzanne Kinney is president and CEO of the Arizona Chapter of NAIOP.

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TRANSPORTATION

ALL ABOARD

PHX Sky Train Phase 2 to improve travelers’ experience at Sky Harbor

By ALYSSA TUFTS

n Phoenix Sky Harbor International Airport’s 3,400 acres, more than 120,000 passengers arrive and depart daily, more than 1,200 aircraft takeoff and land, more than 5,300 cars are rented and more than 20,000 parking spaces accommodate passengers, staff, visitors and businesses. Ranked as the No. 2 airport in the country, Sky Harbor strives to deliver the best service and experience for travelers with innovative and impactful projects. Sky Harbor Airport is in the second phase of extending the PHX Sky Train, the free, 24-hour transportation service that currently runs just under 2 miles from the 44th Street/ Washington Valley Metro light rail station to Terminal 3. In Phase 2, the PHX Sky Train is being extended from Terminal 3, 2.5 miles to the Rental Car Center (RCC), said Heather Shelbrack,

26 | November-December 2019

spokesperson, Phoenix Sky Harbor International Airport. “Phoenix Sky Harbor International Airport is America’s Friendliest Airport,” Shelbrack said. “Our goal is to provide world-class customer service to every customer every day. The extension of the PHX Sky Train to the RCC will provide another way of delivering the best service we can. It will provide a convenient connection across the Airport’s facilities, making it much faster and easier for our travelers to access the RCC from the terminals.” Phase 2, which began in July 2017, is expected to be complete in 2021 and operational by 2022, follows Phase 1 (which links Terminal 4, the East Economy Parking lot and garages and the 44th Street/ Washington Valley Metro light rail station) and 1A (which connects Terminal 4 and Terminal 3), which were completed in 2013 and

2014, respectively. The $740 million project will be paid for with Rental Car Customer Facility Charges and airline Passenger Facility Charges and no local tax dollars will be used. “Several sections of the fixed guideway facility (primary deck) have been completed and turned over to the System Supplier for installation of running surfaces, switches and system operating equipment,” Shelbrack said. “The 'topping off' of the RCC station is anticipated mid-December 2019. Additionally, vehicle production has started with the first set of train cars expected to arrive in Phoenix in the summer of 2020.” Andrew Klem, a project manager for The Weitz Company, a subcontractor to Bombardier Transportation on PHX Sky Train Phase 2, said they are currently constructing the guideway running surface, installing the system

operating components and expanding the maintenance facility as part of Phase 2. When the guideway and maintenance facility are completed, Bombardier Transportation will begin commissioning the new 2.5 mile extension in preparation of its opening by summer of 2022. Klem and Scott Thomas, a project manager with The Weitz Company, said the train’s design features in Phase 2 are consistent with what’s being used on PHX Sky Train’s existing lines, however they said there are plans in place to improve signage and wayfinding to help guests navigate the train schedules. “Most of the improvements along the new phase will be to the user experience. The main user-friendly feature for Phase 2 is connecting the rental car facility to each airport terminal and the overall broader light rail line. Once completed, PHX Sky Train will connect the RCC to

Kirk Fonfara

Andrew Klem

all terminals and the light rail station on 44th and Washington Streets. This connectivity will allow light rail users to connect to all terminals, utilize free park and ride lots, all while saving time.” Shelbrack said with the completion of Phase 2, travelers will be able to more easily connect to all of Sky Harbor's facilities. “Many local residents also enjoy coming to the airport just to ride the train and explore the shopping, dining, and various art exhibitions throughout the airport,” Shelbrack added. “This is popular with school groups, families (especially during school breaks) and couples looking for a unique

Heather Shelbrack

Scott Thomas

date night. The PHX Sky Train extension will make it easy to enjoy a complete tour of Sky Harbor, all the way to the RCC.” Airline passengers will also benefit from the completion of the project, Klem and Thomas said, and will improve their travel experience, as they can “deplane, get on PHX Sky Train directly to the rental car facility or move between different terminals. This is especially helpful in the summer months as you will now be able to get off the plane and go all the way to the RCC without being exposed to the elements. This improvement will also minimize the amount of bus traffic within Phoenix Sky

TRANSPORTATION

Harbor International Airport and eases congestion for arrivals and departures.” In addition to creating an even better traveler experience with the completion of PHX Sky Train Phase 2, the long-term vision for the Western end of Sky Harbor is entailed in the airport’s roadmap for the future called the Comprehensive Asset Management Plan (CAMP), which the Phoenix City Council voted to send to the Federal Aviation Administration for review and approval earlier this year, Shelbrack said. “As part of the roadmap, plans include: Moving cargo and support operations to the north side of the airport to create room for expanded terminal facilities; working with the Union Pacific Railroad to partially trench the track and build a taxiway bridge so that planes can access the relocated cargo operations; and providing space for the Air National Guard 161st Refueling Wing to expand on the south side of the airport. Additionally, the airport will renovate some of its older space in Terminal 4, and look to make improvements to traffic flow along Sky Harbor Boulevard,” Shelbrack said. “Each individual project in this plan will need to be approved by the Phoenix City Council, and is designed to be phased incrementally, so each portion is built only when demand warrants. All projects would be paid for through grants, airport revenues, 28 | November-December 2019

facility charges and bonds. No local tax dollars will be utilized,” Shelbrack said. The completion of PHX Sky Train Phase 2 will also impact the future of Terminal 2. “At this time, all airlines at Terminal 2 will move to Terminal 3, and Terminal 2 will close,” Shelbrack said. “Terminal 2 will be demolished as we look to make use of the space for other future projects. A PHX Sky Train Station was not planned for Terminal 2, but as part of the PHX Sky Train project, we did plan for a future West Ground Transportation Center and a future station for an additional west terminal.” Shelbrack said the airport is in the process of modernizing Terminal 3, and the final component of the project (the North Concourse) will be complete in 2020. Kirk Fonfara, Sr. business development manager with The Weitz Company, said PHX Sky Train is exciting for Weitz since they have been involved with the project since the beginning with Phase 1 and 1A which were completed in 2013 and have the opportunity to see the project built through completion with each phase. “We are also fortunate to help contribute to the City’s continued expansion and investment into Phoenix Sky Harbor International Airport. Through this legacy project, Weitz has also had the privilege of working with some outstanding construction, engineering, and design professionals which include Hensel

NEXT STOP: This rendering shows what the Sky Train station at the rental car center will look like when completed.

Phelps, Deutsch Architecture, Lea and Elliott, Gannett Fleming, KimleyHorn, Wilson Electric, Suntec Concrete, and many others over the course of the last 10 years,” Fonfara said. “Jim Bennett (director of aviation services for the City of Phoenix) has also been a vital asset to our teams over the years leading the efforts to keep the project moving forward through multiple phases. This project is iconic for the City of Phoenix and Weitz appreciates having the opportunity to help construct the PHX Sky Train and partnering with our client Bombardier Transportation,” Fonfara said. Both Klem and Thomas echoed Fonfara’s thoughts. “Having seen how this project has progressed since the beginning, Weitz has seen this project continue to improve in design and build efficiencies and it’s a true result of collaboration and teamwork between our partners, the City, and Phoenix Sky Harbor International Airport. Keeping access for airport and municipal workers, minimizing traffic delays, and making sure we can construct this project around the clock, are some of the critical challenges that our team has been able to solve through constant communication and proactively and carefully planning each step of the design.”

LAND DEVELOPMENT

THE PARKING PROBLEM Developers deal with a host of issues when deciding how much space to devote to parking By STEVE BURKS

t’s a vital component of any development, large or small, and one that is surprisingly complex: Parking. In a car-centric, spreadout city like Phoenix, new developments must have enough parking to accommodate all of the drivers who live, work or visit. Despite being the fifthlargest city in the United States

30 | November-December 2019

PHOENIX: The Phoenix Biomedical Campus parking structure is an example of how modern garages are finished to look like Class A offices.

and the fastest growing metropolitan area, Phoenix is behind other major cities in the country when it comes to public transportation and other alternative means of getting to and from work each day. As the development activity in Phoenix has exploded in the past 10 years, so has the number of large parking structures. These structures may seem simple from the outside,

but there are many hours spent by development teams to determine just the right size, location, look and function of these parking structures. “Parking is a big issue for all development and redevelopment, like our project at Park Central Mall,” said Stan Shafer, president and CEO of Holualoa Companies, which is currently in the midst of a redevelopment project at Park Central Mall that will

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feature the tallest parking structure in Arizona. “The reality is that parking is becoming more important than it ever was because tenant demands for parking have increased over the last 10-15 years.” The Urban Land Institute has long been championing the idea of less parking, especially in the urban core areas of cities around the country. In 2013, the ULI Rose Center released a presentation on parking reform, encouraging urban planners to focus on transit-oriented development (TOD), which is compact, walkable, high-density development close to public transportation. This kind of development maximizes the use of available space with residential, business and leisure projects, leaving PHOENIX: Roosevelt Point parking structure.

32 | November-December 2019

precious little room for parking structures. Phoenix is slowly creating pockets of TOD areas, with Downtown Phoenix, Midtown and Downtown Stan Shafer Tempe the submarkets with the most compact cores. But in other areas of the Valley, developers must address parking concerns when planning their projects. “Parking structures are sort of a necessary evil,” said Chuck Carefoot, senior vice president of construction for Ryan Companies US, Inc. “They take up a significant area, take up significant land, take up all sorts of access, they’re expensive and the revenue typically received from them is insufficient to justify the cost. Parking is often the differentiator to making the project viable or not.” At Park Central Mall, Holualoa is building such a large structure (10 levels of parking) due to the tenant demands of the redevelopment project. That parking structure will

serve the new Creighton University Health Sciences Campus as well as a multifamily project that will be going up on the southwest corner of Central Ave. and Catalina Dr. Also, the structure had to account for all of the parking spaces lost to the three structures that are replacing a large surface parking lot. “It’s simple math, you have to be able to size the parking garage sufficiently to provide parking for the two new uses and replace the parking for the existing use,” Shafer said. “You have to accommodate the parking of the new development, which in this case is Creighton and the new apartments, but you also have to accommodate the fact that you are taking away parking to build those.” Shafer also said that making such a large structure will open the door to future development on the Park Central Mall site. “The type of tenants we’re hoping to attract at Park Central, could be pretty big parking users,” Shafer said. “I think we can get by with a little bit less new parking in the future because of this structure and the fact that we have that light rail connection. That is part of our thinking already.” Both Holualoa Companies, Ryan

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EQUAL HOUSING OPPORTUNITY. NNP III-Estrella Mountain Ranch, LLC and NNP III-EMR 4, LLC (collectively, “Fee Owner”) are the owners of various parcels of land comprising the Estrella Community (“Community”). Newland is the development manager retained by the Fee Owner for the Community. Certain homebuilders unaffiliated with the Fee Owner or Newland are building homes in the Community. Fee Owner and Newland are not co-developing, co-building, or otherwise responsible for any of the obligations or representations of any of the Builders. See www.estrella.com for full terms of use. • Prices, specifications, details, and availability of a builder’s new homes are subject to change without notice. Actual development may vary from developer’s vision. No guarantee can be made that development will proceed as described. Certain properties may be registered with HUD, or may have registered components in the future as required pursuant to the Interstate Land Sales Full Disclosure Act. If such registration occurs, obtain the HUD Property Report, or its equivalent, required by Federal law and read it before signing anything. No Federal agency has judged the merits or value, if any, of this property. 2019 © Estrella. All rights reserved. Estrella is a trademark of NNP III-Estrella Mountain Ranch, LLC, and may not be copied, imitated or used, in whole or in part, without prior written permission.

LAND DEVELOPMENT Companies and developers all over the country are wrestling with parking ratios and how many spaces will be enough; but also how they can maximize the income from the property. Shafer said that not long ago tenants were wanting three or four parking spots per 1,000 square feet of office space, those ratios are now at PHOENIX: The parking structure for the One North Central Ave. building takes up the first three levels.

34 | November-December 2019

five or even up to nine spaces per 1,000 square feet. “I don’t think it’s ever going to happen, particularly here in Phoenix, that we’re not going to need parking garages,” Shafer said. “I just don’t think our city is configured that way. What could happen in the future is that the demand for parking would reduce, which means we could do new developments without adding new parking structures, we would just be able to use the existing parking that we have there.”

Carefoot sees a few submarkets are prime areas for reduced parking demands. He cites Downtown Phoenix, the Central Ave. corridor and the Novus Innovation Corridor in Tempe as areas that could see employers come in that embrace alternative transportation options and require less parking. “There are users that embrace the idea and want to be in a building that has limited parking and their particular employee is very happy to embrace not driving to work,” said Carefoot. “Those kinds of areas also have the advantage that there is a lot of activity. Activity in Downtown Phoenix and Downtown Tempe means that those garages are not single purpose garages and that there are ways to fill them up on non-work days and the evenings and weekends.” The costs of parking structures are rising and grow exponentially if a developer decides to dig an underground structure. However, modern garages go up very quickly and are designed to add to the overall aesthetic of a building. Most new parking structures are built using precast technology. The walls, floors and support posts are built off-site and trucked to the build site, where they are lifted into place and secured together. An average structure takes about 30 work days to erect, but then a couple more months of work goes in to finishing the structure. Justin Nelson is the project manager for hardison/downey construction on its Battery Lofts project in the warehouse district. The parking structure for that project is a precast structure, meaning it will go up quickly once the subcontractor fits them in their calendar. “There’s only a couple contractors in the Valley that do precast, so they are very busy,” Nelson said. “It’s critical for us to make sure that we have the site ready for them in a certain window, within a couple days, because if we miss that window, we’re talking about months and months of delays. “But you can’t beat the timing of precast. That’s where you can see bigtime savings.” Kitchell is the general contractor of the 10 level Catalina garage at Park Central Mall. That project is

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LAND DEVELOPMENT GREAT LOOKS: One North Central Ave., above and Marina Heights, below, both feature eye-catching facades on their parking structures. (One North Central Ave photo by Ane Pulu)

also a precast structure. It took less than a week of work to go from no vertical elements on the job site to a structure four levels high on one end of the project. “A stand-alone, 10-level structure, we believe, will be the biggest in Arizona when we’re done,” said Russ Myers, project manager for Kitchell on the Catalina garage. “It will take 18 weeks of erection time, and then we’ll do the toppings and other finishes. That’s the beauty of precast.” Myers said that the Catalina garage will have electric vehicle charging stations built into the structure. He also noted that the structure is unique in that there will be multiple entities that will use it, making security an important element to be worked out by the entities involved. “There are multiple players, so you can understand how busy that site will be,” Myers said. “Within eight inches of the structure, there’s an apartment complex being built, so they get a certain number of spaces and Creighton gets a certain amount of spaces.” Many modern parking structures have also become attractive elements on a project. Just look at buildings like The LINK PHX, Marina Heights and Watermark. Those new structures are finished with architectural accents that enhance the overall project. On office campuses like the American Express campus in North Phoenix, The Grand in Tempe or Allred Park Place in Chandler, the parking structures are simpler structures that are functional, but not hiding the fact that they are parking structures. The newest phase at the American Express campus, which is being built by Layton Construction, features one of the first garages in Phoenix with a sensor system that signals drivers with a light above the space. If the light is red, the space is full. If it’s green, the space is free. While the newest parking technology is slowly trickling into Phoenix, the trend of designing parking structures 36 | November-December 2019

to blend in or even accentuate a project has been growing in Phoenix for more than 20 years. One project, the former Phelps Dodge Tower, now called 1 North Central Avenue, is the first project with a parking structure that blends into the environment that Ryan Companies built in Phoenix. “That particular building is right on the corner of Central and Washington it has two rotundas; one on Washington and 1st Street,” Carefoot said. “Those two rotundas and the entire five-story parking structure are

completely enclosed, with windows and the rotundas to look like a building, but it’s not. It’s a completely enclosed parking structure for five stories.” “Marina Heights (also developed by Ryan Companies) and so many garages that have been built in the recent past, are owning that they are garages, but are trying to create some visual amenities that create interest,” Carefoot added. “It’s much more cost effective and also a little more pleasant, but that’s obviously in the eye of the beholder.”

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AIA

The American Institute of Architects

Arizona Design Awards 2019

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Arizona is paying tribute to the best people and designs from the past year with the 2019 AIA Arizona Design Awards. These awards recognize excellence in design, leadership, practice,

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38 | November-December 2019

performance and education. The awards were presented at the AIA Arizona Design Awards Gala, which was held on Nov. 8 at the Phoenix 2019 TWENTY-FIVE YEAR AWARD Art Museum. Here is the list of projects and people honored at the event:

ď&#x201A;&#x152; Arizona Sonora Desert Museum Architect: Line and Space, LLC Owner: Arizona Sonora Desert Museum Contractor: Line and Space, LLC

2019 COMPONENT DESIGN AWARD — CITATION AWARD  16th Street & Bethany Home Road

Bus Shelters Architect: Jones Studio, Inc. Owner: City of Phoenix Offices of Arts & Culture, Public Transit, and Neighborhood Services



2019 COMPONENT DESIGN AWARD — CITATION AWARD  Rain Leaders

Architect: Marlene Imirzian & Associates Architects Owner: Girl Scouts Arizona CactusPine Council, Inc. Contractor: The Weitz Company



AIA 2019 COMPONENT DESIGN AWARD — MERIT AWARD  Business School & Indigenous

Cultural Center at Scottsdale Community College Architect: Architekton Owner: Maricopa County Community College District Contractor: Okland Construction

2019 INTERIOR ARCHITECTURE AWARD — CITATION AWARD

Now or Never Architect: HK Associates 2019 Interior

2019 INTERIOR ARCHITECTURE AWARD – MERIT AWARD

Faun Salon Architect: Hazelbaker Rush Owner: Anna Jo Phipps Contractor: Hidden Hollow Construction

2019 INTERIOR ARCHITECTURE AWARD – MERIT AWARD  Meetinghouse at 3080 Architect: Architekton Owner: Structured Real Estate Contractor: UEB

40 | November-December 2019

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42 | November-December 2019

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2019 DISTINGUISHED BUILDING – CITATION AWARD  Canyon View High School

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Architect: Weddle Gilmore black rock studio Owner: Arizona State University Contractor: JE Dunn Construction

2019 DISTINGUISHED BUILDING – MERIT AWARD Xero Studio Architect: Studio Ma Owner: Studio Ma Contractor: Vista General

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Apple Scottsdale Fashion Square Architect: Ennead Architects

2019 DISTINGUISHED BUILDING – MERIT AWARD The Bob & Renee Parsons Leadership Center for Girls and Women at Camp South Mountain Architect: Marlene Imirzian & Associates Architects Owner: Girl Scouts Arizona CactusPine Council, Inc. Contractor: The Weitz Company

2019 DISTINGUISHED BUILDING – HONOR AWARD

Redemption Gateway Architect: DeBartolo Architects Owner: Redemption Church Contractor: Robert E. Porter Construction

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44 | November-December 2019

2019 DISTINGUISHED BUILDING – HONOR AWARD

Prairie Raptor House Architect: Jones Studio, Inc. Owner: Warren and Becky Johnson Contractor: The Construction Zone

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2019 DESIGN PEDAGOGY AWARD

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2019 COMMUNITY EDUCATION AWARD

2019 FIRM OF THE YEAR Gould Evans + Canary

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PERFORMANCE AWARDS

LEADERSHIP AWARDS

SALT RIVER PROJECT 2019 SUSTAINABLE AWARD

2019 AIA10 AWARD Karin Santiago, AIA

2019 ASSOCIATE AWARD Eric Sterner, Associate AIA

2019 COMMUNITY DESIGN Pima Water Architect: Courtney Crosson

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Kenneth Martinek

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HEALTHCARE

RIGHT SIZED CARE Ambulatory services a growing segment of healthcare market By STEVE BURKS

he Phoenix market is growing rapidly, and to meet that growing population, healthcare companies are in the midst of a boom of their own. In the north part of the Valley, work is currently ongoing on HonorHealth’s sixth hospital, the 210,000 square foot HonorHealth Sonoran Crossing Medical Center. Also, Mayo Clinic is working on a $648 million expansion project at its Phoenix location that will double the size of its campus. In the east, Dignity Health is adding

46 | November-December 2019

more than 600,000 square feet of space at two locations. The largest addition will be the partnership project with Phoenix Children’s Hospital to build a new 382,000 square foot Women’s and Children’s Tower at Mercy Gilbert Medical Center. Just a few miles west of that project, Dignity is adding a 220,000 square foot medical tower at Chandler Regional Medical Center. Banner Health is also busy in the East Valley, building a new medical center, Banner Ocotillo Medical Center, that

PUTTING PATIENTS AT EASE: This ambulatory care facility was designed by ARCHSOL and features a comfortable, inviting waiting room and lobby.

will be 245,000 square feet. Banner is also busy finishing up a $106 million expansion at Banner Boswell Medical Center in Sun City, while Abrazo Health recently finished expansion work at its Abrazo West Campus location in Goodyear.

HEALTHCARE The fact that these full-service, largescale medical centers are expanding is good news for residents in the Phoenix market who need critical care. For most patients, however, a trip to a large medical center is the last thing they want to do. To reach more and more patients and provide more service and treatment options, healthcare companies are branching out. Nationwide, the utilization of ambulatory services is on the rise. These centers offer outpatient services,

DESIGN TRENDS: The interior and exterior of an ambulatory care center are designed to be inviting to the patient. (Photos courtesy of ARCHSOL).

48 | November-December 2019

including minor surgical procedures, at smaller, more manageable facilities. “There’s always going to be a group of patients that require the level of intensive care that is found in a full service hospital facility,” said Joan Thiel, CEO of Banner Surgery Centers. “Everybody is nervous going to a hospital, so if you don’t need to, we want to provide that option. We need to help the patient find that level of care that is safe for them and in many cases, that is becoming an ambulatory setting.” Ambulatory care, also known as outpatient care, has been consistently on the rise. Medical care provided on an ambulatory or outpatient basis may include wellness, diagnosis, consultation, treatment, intervention,

surgical, rehabilitation, and other specialty services. “We specialize in healthcare architecture and our approach with each project is distinct to the needs of the medical care provided and the client”, said Doug Updike, senior project manager and healthcare designer for ARCHSOL, a Scottsdalebased architectural firm. “The design and functionality of the healthcare space is increasingly important, given that the patient satisfaction is now tied in part to the provider’s value-based care reimbursement rates.” In the past ten years, hospitals are diverting many services to outpatient facilities. “We’ve got to lower the costs of healthcare and the only way to do that is to put the patient in the right setting at the right time at the right cost,” said Kris Gaw, COO of Valleywise Health (formerly Maricopa Integrated Health System). “We do so much on an acute side, but I think that the lower cost of healthcare is obviously going to be in the ambulatory setting wherever possible and inpatient beds should really be used for the critically ill.” Thiel said Banner operates seven ambulatory surgery centers in the Valley, while Gaw said that Valleywise plans to operate 11 ambulatory locations, including three that are currently under construction. Dignity Health partners with Texas-based United Surgical Partners International, which operates 16 ambulatory care

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HEALTHCARE Why is Amubulatory care on the rise?

Common services

Ambulatory care services, though outside of a hospital, employs almost all of the same healthcare professionals as in-patient care. Thus, it has better accessibility than hospitals and is also found to be more cost effective. This is one of the key driving factors of the market. • Several non-governmental organizations (like Maricopa Integrated Health System - now Valleywise Health) have too played a major role in increasing demand and awareness of the ambulatory care services by organizing several campaigns in remote and underdeveloped areas. • In the past few years there have been high government expenditures for the development of ambulatory care facilities to further increase accessibility and reduce treatment costs, which is driving the market demand. Several NGOs have also played a crucial role in increasing the demand by conducting several healthcare campaigns. • The need to reduce healthcare costs has increased significantly in past years given the rising cases of medical emergencies. Thus, the healthcare costs for every medical emergency is fairly high making things very difficult. However, several governments of emerging economies have started reimbursement programs to safeguard the finances of its citizens. • North America dominates the market by holding the largest market share. The region is technologically and infrastructural advanced and well planned making ambulatory care services accessible to a large chunk of the population. The region is expected to grow at a CAGR of 4.7 percent.

These are the 20 most common procedures done at ambulatory surgery centers across the country and their percent of volume of total procedures, according to the 2017 MedPAC report. 1. Cataract surgery w/ IOL insert, 1 stage: 18.8 percent 2. Upper GI endoscopy, biopsy: 8.0 percent 3. Colonoscopy and biopsy: 6.9 percent 4. Lesion removal colonoscopy (snare technique): 5.9 percent 5. Inject foramen epidural: lumbar, sacral: 4.7 percent 6. After cataract laser surgery: 4.3 percent 7. Inject paravertebral: lumbar, sacral: 3.3 percent 8. Injection spine: lumbar, sacral (caudal): 2.9 percent 9. Colorectal screen, high-risk individual: 2.0 percent 10. Diagnostic colonoscopy: 1.9 percent 11. Colorectal screen, not high-risk individual: 1.8 percent 12. Destroy lumbar/sacral facet joint: 1.6 percent 13. Cataract surgery, complex: 1.4 percent 14. Injection procedure for sacroiliac joint, anesthetic: 1.4 percent 15. Inject spine, cervical or thoracic: 1.0 percent 16. Cystoscopy: 1.0 percent 17. Upper GI endoscopy, diagnosis: 0.9 percent 18. Revision of upper eyelid: 0.9 percent 19. Upper GI endoscopy, insertion of guide wire: 0.8 percent 20. Lesion removal colonoscopy (hot biopsy forceps): 0.6 percent

Source: Becker’s ASC Review

centers across the Phoenix market. Nationwide, through September, there were a total of 166 new ambulatory care centers built or announced in 2019. In Arizona, there were six new projects. Phoenixbased OrthoArizona and United Surgical Partners International moved into a new medical office building and ASC in Gilbert. HonorHealth began construction on its Sonoran HonorHealth Medical Center which has an ASC as part of a campus expansion. Flagstaff Bone & Joint is expanding its footprint with The Flagstaff Bone & Joint Ambulatory Surgical Center and medical office building, and Phoenix-based National Cardiovascular Management is developing a medical campus that will feature a multispecialty ASC. The other two ASCs are the new Valleywise locations. The North clinic 50 | November-December 2019

will be at 19th Ave. and Northern; and the South clinic will be at 35th Ave. and Southern. “There are a couple of reasons why these providers are investing in these facilities,” according to Elissa Kelly, business development director for ARCHSOL. “One of the reasons is to expand provisions of service beyond the boundary of the hospital which in turn will improve accessibility and reduces costs. In response to retail-oriented healthcare demands, these facilities provide ease of access for consumers while also allowing providers to capture market share at an earlier point in the continuum.” Gaw said that Valleywise Health has been very analytical in how it plans for expansions. She noted that in 2014, the voters of Maricopa County passed Prop 480 which provided $935 million for the county’s public safety net

Source: MedPAC analysis of physician/supplier standard analytic files from CMS, 2012 and 2017

health system. “We knew that we had to be very thoughtful, we had to be very data driven,” Gaw said. “For us, our mission is different. So we looked at that data through the lens of, ‘Where do we serve the most under served in a very intentional way?’ ” Valleywise used heat maps to chart where the densest population of under served residents were and looked for property in those areas to determine where to expand. The two new Valleywise care clinic projects are being constructed at the same time by Sundt. For both clinics, Sundt will construct new, singlestory 26,000-square-foot buildings on three-acre sites. Each clinic will include 24 exam rooms, an X-ray room, ultrasound rooms, lab space, and pharmacy, as well as a community learning library and classrooms. DWL

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HEALTHCARE

FACILITIES: Valleywise Health is currently building two ambulatory care centers, above, while HonorHealth opened its Sonoran Health and Emergency Center in 2018.

Architects + Planners, Inc. is the design team behind the clinics. Banner’s approach to ASC’s is to work with surgeons to acquire existing ASC’s where possible. If none are available in a given area, Banner will construct one if they deem it necessary. “I think partnering with surgeons is very valuable,” Thiel said. “They want to have a high-quality surgery center to take their patients to. We want that patient experience to be as convenient as possible.” While ASC’s have been around for quite some time, another ambulatory service that is on the rise is imaging. 52 | November-December 2019

Ambulatory imaging services include X-rays, CT scans, MRI and other tests in an outpatient setting. Banner recently partnered with East Valley Diagnostic Imaging (EVDI) and Valley Radiologists (VRL) to provide imaging services to Banner patients throughout the Valley. Most new ambulatory care centers being built offer imaging services, which adds another layer of services at one convenient location. “We’ve got a very good relationship with EVDI and VRL where we’re running the imaging centers and they’re providing all of the professional services,” Thiel said. “Many of them are

comprehensive imaging centers. You can get an MRI, you can get a CT scan. Not only are those less expensive for the patient, but the insurance plans are in many cases saying, ‘we are not going to authorize a CT or an MRI in the hospital because we believe it can be less expensive and safely done in an outpatient imaging center.’ ” The biggest positive about ambulatory care is the cost savings, to both the patient and the insurance companies. Most of the procedures being done at ambulatory centers are becoming less invasive and streamlined as the medical knowledge advances. “As technology improves, both commercial carriers, as well as Medicare and Medicaid are approving more and more surgeries and procedures to be done in an ambulatory setting,” said Thiel. “It’s safe for the patient and it certainly is more convenient and affordable.” The cost savings come from less time spent in the facility, with no overnight stays, as well as all of the costs saved on overnight staffing. “The ability to have a patient only have to be in that facility for less

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HEALTHCARE than 24 hours, that in sheer nature of cost, is a big advantage,” Gaw said “The overhead costs for an outpatient facility is much less than an inpatient, so your charges that are driven to cover those expenses are relative, so that helps the patient. “Not putting a patient into a hospital setting when they don’t need to be in one has all kinds of benefits, not just cost, but quality outcomes.” While saving money is one tremendous advantage for the patient, the other advantage to these smaller facilities is in the peace of mind. Parking right out front and walking into a 30,000 or 40,000 square foot ambulatory facility is much less stressful than trying to navigate FACILITIES: Ambulatory services are provided at the Center for Advanced Surgery in Gilbert, top, as well as Phoenix Children's Speciality and Urgent care center, below

54 | November-December 2019

around a large medical center campus. Plus, for the patient, it feels more like a standard doctor’s appointment in an ASC setting. For architectural firms that work on these project types, they design them for operational and clinical efficiency of patient care service. “We’ve seen projects that focus on provision of service outside of acute care setting where patients are able to receive treatment in a more comfortable, relaxed setting,” said Kelly, “For example, ARCHSOL was instrumental in expanding HonorHealth’s Virginia G. Piper Cancer Care Network, a comprehensive range of ambulatory care services under one coordinated umbrella of care, by completing the design of the renovation and/or build-out of eight specialty outpatient facilities throughout the Valley.” Updike notes that the designs and layouts of these facilities are built

around the goal of creating a positive experience for patients, family and staff. They are designed with minimal “door to door” distance, smaller spaces to improve patient flow and thoughtful, comfortable finishes. There is comfortable seating, a lot of natural light and views to the outdoors, considerations that help reduce stress for patients and staff. Work spaces are also designed to provide areas for staff collaboration, as well as quiet areas. “In an ambulatory surgery center, you’re pretty much parking near the front of the building, you’re in and out,” said Gaw. “The flow is much different.” “We survey a segment of our patients and they tell us it’s convenient, it’s far less intimidating, the experience is a lot quicker, usually, because the turnaround time in a setting like this is better,” added Thiel. “I would say, almost universally, what we’re hearing is that it’s a much better patient experience.”

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STACKING WINS Arizona continues to see influx of new businesses By STEVE BURKS

ou see all of the data and it’s clear that the Arizona economy is getting a boost from California, as companies big and small are exiting the Golden State for the better business environment in the Grand Canyon State. Since 2015, 49 California companies have chosen to set up shop in Arizona, a remarkable number. Well, recently, that number jumped to 50, as . Inc., an industry leader in repairing and overhauling helicopter engines, announced it was moving its headquarters from Santa Clarita, Calif. to Chandler. The company will occupy nearly 19,000-square-feet of industrial space at 10 Chandler, located at 560 N. 54th St. H.E.R.O.S. Inc. plans to create 25 new jobs in the Chandler community and expects to be fully operational by the winter of 2019. “We were drawn by the businessfriendly environment and the lower taxes in all areas of our business and our employees’ lives,” said Raffi Kajberouni, vice president at H.E.R.O.S., Inc. “There’s just a lower cost of living for our employees, and they can afford places to live near where they work and this move allows us to expand our capabilities.” In a report released from the U.S. Bureau of Labor Statistics, the Phoenix-Mesa-Scottsdale metropolitan statistical area (MSA) had the largest total nonfarm job growth of all large MSAs from May 2018 to May 2019. The Phoenix metro area added 66,500 total nonfarm jobs year-overyear, representing 3.2 percent job growth — the largest of any MSA with a population over 1 million in the 2010 Census. Leading sectors for employment growth were Education and Health Services (17,200 jobs), Construction

60 | November-December 2019

(15,100 jobs) and Professional and Business Services (12,800 jobs). What impressed Kajberouni the most about the atmosphere in Arizona was the fact that the company originally looked to relocate in Gilbert. H.E.R.O.S. worked with town officials and the Greater Phoenix Economic Council (GPEC) on finding a suitable location, but struck out. Gilbert officials helped guide H.E.R.O.S in their search toward Chandler, where H.E.R.O.S. found the space they were looking for. “It was fantastic. It was night and day. GPEC has been incredible and helped us throughout the way. And working with Gilbert, we were unable to find a building, but without their assistance, we wouldn’t have been able to find a building,” Kajberouni said. “Working with them was fantastic. You felt the difference. You felt that these people want us here. “And once we committed there, the real commitment started from Chandler and everyone else. They told us, ‘When you’re up and running call us back, we want to stay in touch.’ “ H.E.R.O.S. is looking at starting operations in Chandler on Dec. 1 and will open with 31 employees, with hopes of expanding. This economic “Win” for Arizona was just one of many the state has seen in the past year. The following information provided by AAED is just a sample of other economic developments in the state:

PHOENIX

• Voya Financial announced it will open a new office in the metro Phoenix area and bring more than 1,000 jobs to the Phoenix area. The new location will be in addition to Voya’s existing

Scottsdale office at 7337 E. Doubletree Ranch Rd., where approximately 200 employees from the company’s Investment Management business are already based. • Hopebridge announced plans to establish pediatric autism therapy centers to 12 locations in Arizona, the first three of which are in Phoenix, Glendale and South Tucson. • CarMax, the nation’s largest retailer of used cars, will create 430 new jobs for their new Customer Experience Center which is opening in Tempe in December. • Verdigris Holdings, Inc., selected Arizona for its corporate headquarters. Verdigris will bring over 210 wellcompensated jobs to the Greater Phoenix area with average annual salaries of over $150,000. This represents an economic infusion of over $32 million per year by 2022 along with a $19 million capital investment. Verdigris uses the combination of cutting-edge technology, industry expertise and ultimately a real, regulated bank to deliver simple transactional banking to unbanked people and the companies that serve them. • thredUP, the world’s largest online marketplace to buy and sell secondhand women’s and children’s clothing, opened a new distribution and office in Phoenix. The 120,000-square-foot space is expected to bring 500 new jobs to the market. • Choice Hotels recently announced it will be locating its technology headquarters to Nationwide Realty Investor’s Cavasson development in north Scottsdale. Choice Hotels expects to hire 500 people over the next five years. It is the second tenant at Cavasson, joining Nationwide

Insurance, which is expected to move into its new, 460,000-square-foot regional headquarters building in late 2020.

MESA

• Able Aerospace expanded its Mesa headquarters by 60,000 square feet. The $9 million expansion will create room for 100 new jobs, making Able Aerospace the largest current employer in the PhoenixMesa Gateway Airport submarket with 460 employees. • Fujifilm Electronic Materials U.S.A., Inc. is currently working on an 85,000 SF building expansion at its Mesa facility. The five new buildings will expand the company’s capabilities for manufacturing, warehousing, research and development and office space. The expansion, which is expected to be complete in early 2020, will mean 60 new jobs will be coming to the facility. • AT&T created 500 jobs at a new, state-of-the-art customer call center unveiled in July of 2019. The 97,000-square-foot call center is located within AT&T’s corporate campus

and brings the total number of AT&T employees in Arizona to 1,700. • Times Microwave Systems (TMS) expanded its Mesa manufacturing facility located at Metro East Valley Commerce Park. The new facility is more than five times larger in size. Since Times Microwave began Mesa operations in 2015, it has grown from two employees to more than 80. With the move to its new facility, the company expects growth to continue.

AAED MOVING IN: Two of the many companies moving into new or expanded facilities in the Valley are thredUP, top, and Fujifilm Electronic Materials.

• Commercial Metals Co. completed construction and commissioning of a 63,000-square-foot expansion and manufacturing line to produce spooled rebar at CMC Steel Arizona, a micro mill in southeast Mesa. The Mesa operation has grown since it opened in 2009, investing more than $75 million capital in the campus and growing its workforce. The company originally anticipated a workforce of up to 200. CMC Steel Arizona now employs more than 260 directly on site. • Waymo announced in March that it will be opening a new, 85,000-squarefoot service center in Mesa. The new center will more than double the company’s service and maintenance space in the Valley and the company said that this location will create 100 new jobs, with the potential for more in the future. • Myndshft, a technology company that specializes in blockchain and artificial intelligence in healthcare, moved into a larger office in the Red Mountain Business Park and plans to triple its team from 30 to over 100 employees in 2019. • CAVU Aerospace is moving forward with construction on an 80,000-square-foot aircraft maintenance facility at the PhoenixMesa Gateway Airport. The $5 million project is expected to create 75 jobs over the next three years. • Google has committed to a $1 billion, 750,000-square-foot data center campus project to be built in three phases at their location on the northeast corner of Elliot and Sossaman. • RagingWire closed on a land purchase on July 1 for their first data center location in Arizona.

GOODYEAR

• Nike purchased the 2018 RED Award-winning Lincoln Logistics 40 for $70 million in August and announced plans to invest $185 million to turn the facility into a manufacturing plant for the mid-sole cushioning for its

62 | November-December 2019

athletic shoes. The 901,700-square-foot facility will employ more than 500 fulltime employees. • Fairlife, LLC, a dairy production and distribution company, announced plans to increase overall production capabilities with the construction of a new 300.000-square-foot production and distribution facility in Goodyear. The new $200+ million facility, which is slated to begin operation in the back half of 2020. Located at the corners of Cotton Lane and Thomas Road at the Palm Valley 303 Business Park, the new facility will incorporate advanced manufacturing technologies and efficient, energy-saving equipment to reduce power consumption. It will create more than 140 jobs locally.

• Civic Square at Estrella Falls was approved by the Goodyear City Council in August. This first-of-itskind project is in partnership with the Globe Corporation. The development will serve as a gathering spot for civic events, festivals, concerts and more. It will have civic buildings, as well as a 100,000-square-foot, Class A speculative office space as part of phase 1. • Two hotels are under construction at Bullard Ave and Interstate 10 to address growing need for hotels in the West Valley. Innovative Hilton concept TRU provides a modern, lively vibe targeting millennials and young adults. This hotel is four stories, 54,561 SF with 90 rooms. The second hotel is

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NEW LOCATIONS: Adelante opened a new facility in Goodyear, above, while Nike announced plans to move into the Lincoln Logistics 40 building.

a Springhill Suites by Marriott. This product provides upscale business and family accommodations, all-suite hotel with more amenities. The project is four stories, 40,713 SF and has 88 rooms. • PMB invested $15 million to transform the former Palm Valley Cinema multiplex theater into the 50,000 SF Palm Valley Medical Center, a medical office product that was 90 percent preleased at opening. • Adelante Healthcare Goodyear was built in 2019 by LGE Design Build. The nearly $5 million project is a nearly 45,000-square-foot comprehensive primary health care center. The sevenacre site and medical office building will serve several hundred patients per day in a one-stop shop environment of care. LGE completed both the new single-story shell building and the interior tenant improvements in parallel to complete this innovative and unique medical center on the campus of Abrazo West Hospital. The facility resulted in 40 jobs.

TUCSON

• Northwest Healthcare announced expansion in Tucson, creating nearly 600 jobs.

64 | November-December 2019

• Amazon, the global e-commerce leader, will open a new auxiliary distribution site that will receive and sort packages from larger warehouses to be transferred onto vans and smaller delivery vehicles. The company plans to create 300 jobs, which will primarily be delivery drivers and warehouse employees. The economic impact of the new Tucson “last mile” delivery center will be $181 million over the next five years. • Imperfect Produce, an on-line produce delivery company focused on fighting food waste by finding a home for ‘ugly produce’, will open its first customer care center in Tucson. The company plans to create 350 jobs at all levels, including customer care

associates, supervisors, and managers. Also, Imperfect plans to make a capital investment of $200,000, creating an economic impact of $137 million over the next five years. • Southern New Hampshire University, a non-profit, regionally accredited university with a more than 80-year history of providing high quality education to students online and on campus, will open a new operations center in Tucson to better support its growing student body across the country. The new center will house 350 employees, including additional student-support staff, including academic advisors, student financial services staff, admissions, and IT support. The economic impact

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AAED of the new Tucson SNHU Operations Center will be $218 million over the next five years. • Symboticware Inc., an industry leader that provides an industrial IoT hardware and software platform to help customers unlock, collect and analyze valuable data to help improve business outcomes in the mining industry, is establishing a US/Mexico headquarters in Tucson. Symboticware will add 20 new high-tech jobs and invest $500,000 in their Tucson headquarters. The project is expected to create an economic impact of more than $17 million over the next five years. • MicroMex, a privately owned company based in Mexico that provides contract manufacturing to a wide range of industries, is opening a new manufacturing and distribution center at the Port of Tucson. The company plans to create 100 new jobs, which will primarily be assembly and warehouse workers. The economic impact of the new Tucson distribution center is anticipated to be $181 million over the next five years. • Dove Mountain Residences, LLC announced plans to build a state-ofthe-art senior living facility in Marana, creating nearly 70 jobs. • Geico opened a new, 200,000-square-foot regional office in Tucson and will consolidate its 1,500 regional employees into the building and add an additional 700 positions in the next few years.

FLAGSTAFF

• Rehabilitation Hospital of Northern Arizona (RHNA) held their grand opening in Flagstaff in 2018. RHNA provides specialized rehabilitative services including Occupational Therapy, Physical Therapy and Speech Therapy to patients who are recovering from disabilities caused by injuries, illnesses and chronic medical conditions. RHNA provided 150 new high wage jobs to our community. • Welbrook Senior Living held a soft opening at the end of last year. They have brought over 125 new jobs that offer quality care that includes assisted living, memory care, skilled nursing and rehabilitation. They are elevating healthcare through hospitality, compassionate care, and dignity with exceptional service. • Flagstaff Urgent Care opened another location in Flagstaff. The new Sacred Peaks Clinic in Flagstaff is now open. Loven Construction provided preconstruction and construction services. This 24,000 SF facility is

the first entirely new building for the Navajo Hopi Foundation and represents a significant step in the ability to offer state-of-the-art care in a culturally sensitive setting.

YUMA The largest company expansion came late in 2018, when Almark Foods completed a new 115,000-squarefoot plant that produces peeled, hard boiled eggs. The new facility created 117 new jobs for the company. Another company, Insultech, expanded its Yuma operations and added 45 new employees. Insultech produces thermal insulation products. Other companies in the Yuma market that expanded are LaSalle Southwest Corrections, which added 13 employees; and Martech Medical, which added four employees. New companies in the Yuma area in the past year are Piana Group, a high-performance textiles company; LRC Coil, which produces custom coils and evaporator units, and MPW, which opened a 30,000-square-foot industrial water regeneration plant.

AMAZON: Online retail giant will open a new facility in Tucson.

Tech Convergence in full effect in Goodyear Five data center campuses are currently under development in Goodyear, making Goodyear the epicenter of tech growth. “Greater Phoenix is rapidly becoming the leading market for data centers in the U.S.,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council. Microsoft is also partnering with local industry leader First Solar for a 150 MW solar plant in Goodyear. Initial operations have already begun in phase 1 for each of the five campuses: 66 | November-December 2019

Microsoft South — 260 Acres, 244,000 SF Microsoft North — 145 Acres, 244,000 SF Stream Data Centers— 157 Acres, 418,000 SF, 50 MW capacity Compass Data Centers — 225 Acres, 2 Buildings, 415,000 SF; 72 MW capacity Vantage Data Centers — 50 Acres, 4 buildings, 170,000 SF; 32 MW Initially, Stream, Compass and Vantage, will deliver more than 150 MW of IT load — enough to power 37,500 homes. Full buildout

of these campuses is estimated to be between 1-2 million square feet each and combined 860 MC of load (excluding Microsoft). JLL’s 2018 year-end report shows a total data center of inventory of 1,725,000 SF with 254 MW of load in the Phoenix market. Goodyear’s first phase of data center developments will equal the current market totals. The three campuses will be a combined 1,734,000 SF with 154 MW capacity. Microsoft’s total size and capacity at full buildout is unknown, but it’s expected to be more than 1 million square feet.

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Snyder fits AAED mold Association president ready to roll up sleeves, work to help Arizona attract businesses By STEVE BURKS

rizona is definitely on a win streak when it comes to business attraction and business expansion, and a big reason for that is the work being done by the Arizona Association for Economic Development. Along with its partners from Arizona cities and counties, the AAED is laying the foundation for businesses that want to set up shop in the state. AZRE Magazine sat down with AAED president Nicole Snyder, the director of business strategy for Johnson Carlier Construction, to find out what is making the AAED so successful, how it’s preparing its members for the future and why it’s an organization worth being a part of.

AZRE: How has your work with the AAED benefited you professionally? NS: As a service provider member of AAED, there is no doubt that I most value the contacts and friendships I’ve made within the association. AAED has also been instrumental in my personal development. As a volunteerbased association, AAED members drive the mission and purpose of the organization by actively participating in programs and events. Working within the organization has helped to hone my management and business presentation skills and has made me the leader I am today in our community. AZRE: What do you feel is the most important aspect of what the AAED does? NS: AAED is a dynamic association where the industry can benchmark best practices, network, and advocate for economic tools. Together, we focus on working together on improving the 68 | November-December 2019

quality of life and strengthening the business climate in both metro and rural Arizona. AZRE: Arizona is in the midst of strong economic growth and is attracting companies at a steady pace, but what role do you see the AAED playing when the Arizona economy levels off or slows down? NS: AAED was founded in 1974 at the height of the OPEC crisis and national recession. Like-minded individuals wanting to better the economy came together to form our association. They pooled resources and teamed up as a state-wide group. Again in the “great recession” of 2007-2009, AAED members came together and worked as a group. And today, with a strong economy and nearly 500 members across the state, we continue to work together. Regardless of the economic climate, we will always carry on in sharing best practices, learning from successes of others and working as a group to bring wealth generation industries and jobs to Arizona. AZRE: What are some of the AAED initiatives that you’ve been most proud of? NS: AAED is leading the way for advanced professional education in the State of Arizona. In 2012, AAED officially kicked off the Economic Development Academy of Arizona which provides advanced economic development training with

course work leading to the Arizona Economic Development Professional (AZED Pro) designation. This is affordable economic development training specifically catering to how the industry works in Arizona. Additionally, AAED has partnered with the International Economic Development Council to host the annual Arizona Basic Economic Development Course – a 4½ day “boot camp” for new economic developers. AAED in partnership with IEDC also brings their advance courses to Arizona annually so our members can more easily achieve their Certified Economic Developer (CEcD) designations. AZRE: Describe the level of cooperation and collaboration among AAED members and how that has benefited the Arizona economy. NS: Collaboration is one of our three pillars at AAED, in addition to Education and Advocacy. We openly share information about project wins and ideas which allows our membership to benchmark their own programs. And we celebrate those individual and community achievements annually with our Golden Prospector and Economic Development Distinguished by Excellence (EDDE) Awards. We are also committed to bringing up the next generation of economic developers. We are working to educate and engage young professionals within the organization and through partnerships with our state universities. AZRE: What would you say to someone considering becoming involved in the AAED? NS: Great question. I like that you said “involved” instead of “becoming a member.” The true value in joining any organization is the people. I promise those that join the membership and roll up their sleeves and become involved will find outstanding value for their employers and themselves. I encourage anyone that wants to work on bettering Arizona’s economy to consider joining AAED today. Check us out at aaed.com.

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AAED included 25 wrapped vehicles, digital ads, Twitter campaigns, PR activation, airplane fly overs, sign spinners and more. The #CAstruggles campaign aimed to connect with high-tech business leaders and put Greater Phoenix on the map. With more than 2 billion media impressions and 115 million car impressions, GPEC has seen an increase in leads from the market resulting from the campaign. With financial success and financial health being at odds in California, businesses are evaluating Greater Phoenix as a place to cost optimize and secure the talent needed to advance their operations.

BURNING QUESTION AZRE Magazine gathered economic development leaders from around the state to get their feedback on what’s happening in their offices. We asked them the following question: What one project did your team work on that you were most proud of this past year and why? Mitchel Allen, Senior Vice President, Business Development, Greater Phoenix Economic Council The exodus from California is real and Greater Phoenix Economic Council (GPEC) tackled the root cause of this outmigration with the #CAstruggles campaign. This integrated marketing initiative 70 | November-December 2019

Wendy Bridges, AZED Pro, Economic Development Coordinator/Film Commissioner, City of Prescott Prescott has had a great year, with success in new advanced medical, high tech and aerospace companies. While we are definitely excited about the opportunities they bring, it is equally important to not lose sight of the amazing companies that are right in front of us. As part of our BRE program, and for the first time ever, the city rolled out a business recognition program called “Prescott’s Best,” so-named by the Mayor’s Youth Advisory committee. The program is designed to recognize outstanding achievements, longevity, contributions to the community and commitment to Prescott’s quality of life, by Prescott businesses. To date, 21 businesses have received this recognition that comes personally delivered to the business by the Mayor of Prescott. What these folks bring to the Prescott community by going above and beyond is humbling, and I am most proud of them. Mignonne Hollis, Executive Director, Arizona Regional Economic Development Foundation Our team (Arizona Regional Economic Development Foundation) partnered with ASURE a not for profit organization created by ASU to launch project Operation Lost and Found. The goal was to enhance unmanned Aerial System (UAS) operations with the state

through collaboration, standardized training and fielding of interoperable systems. This project served as a demonstration of the benefits tailored to UAS operations in support of Search and Rescue all while creating an economic impact in our region. A number of public safety agencies attended the demonstration at the Benson Municipal Airport where we highlighted the use of infrared camera and computer software to allow the battery-operated drone to operate on autopilot over a specified search area. Jennifer Lindley, Downtown Development Manager, Town of Queen Creek In late 2018, the Queen Creek Town Council unanimously approved a new Downtown Core Zoning District and Design Guidelines. The Downtown Core Design Guidelines and Zoning District were designed to attract redevelopment and to create a unique destination. A primary consideration of this effort focused on providing opportunities for development standard flexibility in regulation and throughout the development process. Not only is there flexibility within the process and regulations, the zoning guidelines incorporate innovative aspects to optimize the creativity and abilities of developers, without compromising the aesthetics and sense of place in the Downtown Queen Creek Core. More information at: investtheqc.com/downtown-core. Micah Miranda, Economic Development Director, City of Chandler The City of Chandler is very fortunate to have worked on a number of amazing projects this past year across all of our target employment clusters. However, an ongoing effort that Team Chandler is proud of is our commitment to fiscal sustainability, political sustainability, a pro-business operating environment and support for our educational institutions. The combined impacts of all these efforts allow the City of Chandler to compete for and win projects that advance our economic competitiveness.

Welcome, Microsoft. You’re in good company. We’d like to be among the first to welcome Microsoft’s three new world-class datacenter campuses to Arizona. Microsoft joins Compass, Stream and Vantage who recently announced opening datacenters in the state. Soon, Nike, Red Bull and Anderson Corp. will also call Arizona home. Welcome. Learn more about APS at aps.com/economicdevelopment or contact David Bentler at David.Bentler@aps.com or Kelly Patton at Kelly.Patton@aps.com.

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