National Bank of Arizona®
Gilbert’s
Grand Plan
The once humble farming town evolves into a model for progressive living
and
PERFECT PARTNERSHIPS friends and family can make for successful collaborations
FAMILY VALUED
Family-owned businesses have eyes on past and future
SUMMER 2019
NAMED NO. 1 Ranking Arizona’s findings are the outcome of the largest business opinion poll in the state. We’re proud to announce that we’ve been named Arizona’s No. 1 Bank by Ranking Arizona and have received this recognition for 16 years.
NB|AZ® provides more than just financial guidance to its customers. The organization is dedicated to the community by investing volunteer hours and raising donations for local nonprofit organizations. Last year, our employees gave over 9,500 hours of their personal time back to the community and raised funds totaling more than $60,000.
NATIONAL BANK OF ARIZONA The Only Bank You Need
P-RANKED TO
SBA
LENDER
VOTED
RANKING ARIZONA
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in this issue
FEATURES
DEPARTMENTS
16 Perfect Partnerships
02 @NB|AZ What’s happening at National Bank of Arizona
In the world of business, friends and family can make for successful collaborations
04 AZ WORKS Making Spaces
22 Gilbert’s Grand Plan
Tempe firm houses co-manufacturing community
The once humble farming town evolves into a model for progressive living
06 FOOD & DRINK Resilient Restaurateurs
28 Family Valued
Mastro family perfects the art of fine dining
Family-owned businesses have eyes on past and future
08 ARTS & CULTURE Soul Survivors Strong family ties impel iconic Sister Sledge to carry on
10 TRAILBLAZERS Latina Luminaries Owned by Bruce and Jennifer Meier, Ben’s Saddlery in Wickenburg can credit its success to the hardworking efforts of the husband-and-wife team.
Women entrepreneurs bond together to strengthen their economic power
12 AZ NONPROFIT Balancing the Scales of Justice Legal aid for at-risk women and children ensures a brighter future
32 EXPERIENCE AZ A moment in Morenci
PUBLISHER National Bank of Arizona EDITOR-IN-CHIEF Jenavi Kasper, jenavi.kasper@nbarizona.com PROJECT EDITOR Alisa Gravel, alisa.gravel@nbarizona.com
EDITORIAL DIRECTOR Michelle Jacoby, michelle@pb-jcreative.com CREATIVE DIRECTOR Nathan Joseph, nathan@responsecreative.com PRODUCTION MANAGER Chris Adams, cwadams@me.com CONTRIBUTORS Aaron Berman, Bruce Farr, Leigh Farr, Debra Gelbart, Jake Poinier, Lisa Van Loo PHOTOGRAPHER Mark Lipczynski, mark@marklipczynski.com
Elevate AZ magazine may contain trademarks or trade names owned by parties who are not affiliated with National Bank of Arizona, Zions Bancorporation, or its affiliates. Use of such marks does not imply any sponsorship by or affiliation with third parties, and National Bank of Arizona does not claim any ownership of or make representations about products and services offered under or associated with such marks. Articles are offered for informational purposes only and should not be construed as tax, legal, financial or business advice. Please contact a professional about your specific needs and advice. © 2019 Zions Bancorporation, N.A. All rights reserved. A division of Zions Bancorporation, N.A. Member FDIC
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ON THE COVER Once a dusty swath of farming land, Gilbert has transformed itself into one of the most desirable places to live in the Southwest. Find out how the town once hailed as the “Hay Shipping Capital of the World” evolved into a progressive, innovative community. Page 22. Photo by Mark Lipczynski
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NB|AZ celebrates significant increase in SBA loans
Small Business Success
W
HEN DAVID CASTILLO started working with a business start-up consultant to help him navigate the journey of opening a private physical therapy practice in Camp Verde, Arizona, he was advised to work with National Bank of Arizona (NB|AZ) to obtain SBA financing. Central Arizona Sports and Physical Therapy is just one of the 93 small businesses NB|AZ funded in 2018 through SBA loan programs. “I was told that National Bank of Arizona is the easiest and most cooperative bank to work with to help with financing,” says Castillo. “It’s true that Debbie Dickison (branch manager) was easy to work with and the bank’s application process and funding was also streamlined and quick. Because of their fast turnaround, I was able to open my new business sooner than I originally expected.” “While our team of business bankers provides many more services than just loans, the No. 1 need for most
SBA loan volume increased 272 percent in 2018. That’s almost 70 more loans than the previous year. What’s more, the community bank leapfrogged 13 spots in 2018 to rank No. 3, outpaced by only two national banks. “I honestly can’t think of a better product to offer business clients that exhibits our sincere focus on small business innovation and growth,” says Brent Cannon, senior vice president, director of community banking group at NB|AZ. Over the past few years, we’ve spent a significant amount of time looking at how to improve our lending practices to meet the evolving needs of businesses in Arizona.” As part of that transformation, NB|AZ adopted many methods from their parent company, Zions Bank, a proven SBA lender holding the No. 1 spot for the 25 consecutive years in Utah and 17 years in a row in Idaho. “Affiliates at Zions Bank readily shared their best-inclass business lending practices with us,” says Cannon. “Not only have our bankers embraced the change, but they’ve also established streamlined execution and fulfillment, leveraging our organizational strength.”
NB|AZ’s SBA loan volume increased 272 percent in 2018. That’s almost 70 more loans than the previous year.
Creating connections
small businesses is capital, and we aim to fulfill that need,” says John Lewis, senior vice president, business banking regional manager.
Innovation & growth Just 12 short months after announcing the launch of a focused team of eight business bankers, NB|AZ’s
Since obtaining his SBA loan through NB|AZ last August, Castillo also began the process of moving his entire personal and business banking relationships to NB|AZ. “I found Debbie and her team at the branch to be very friendly and helpful, whether I need to cash a check or get a distribution from my loan,” he says. “So much so, that my wife and I have started moving all of our accounts from another bank in town to NB|AZ. It’s refreshing to work with bankers who know my name and truly care about my business.” Creating real connections and lasting, personal relationships with customers has been a cornerstone to NB|AZ’s business model for over 30 years. “When a small business owner chooses to bank at National Bank of Arizona, it tells us they value having their banker by their side, not their bank on every street corner,” Cannon says. “At the end of the day, that’s what we take to heart.”
DON’T MISS
Wine & Dine ON OCT. 10, NB|AZ will host its 13th annual Taste of the Biltmore event at the NBAZ Corporate Center located at 6001 N. 24th Street in Phoenix. The bank’s signature food-and-wine event features the Valley’s top restaurants and chefs in support of local charities. This year’s benefiting charity is Ryan House (ryanhouse.org). The restaurant lineup includes: The Adobe Restaurant Artizen Beehave Honey Benedict’s Catering & Events Biscuit Bombers Bluewater Grill Bobby-Q BBQ
Bruce Brown Catering Churro GoNUTZ Cien Agaves Tacos & Tequila Cotton & Copper Dust Cutter Famous 48 First Watch Frost Gelato
Gadzooks Enchiladas & Soup Grabbagreen Grimaldi’s Pizzeria The Herb Box High & Rye Huss Brewing Co. Infusion Coffee & Tea Crafters
Kettle Heroes Morning Squeeze Nothing Bundt Cakes O.H.S.O. Brewery Original ChopShop Pokitrition Quinoa Esta Bakery Salty Sow American Gastropub
SanTan Brewing Company Shake Shack Short Leash Hot Dogs Soundbite Welcome Chicken + Donuts Wrigley Mansion
Since 2007, Taste of the Biltmore has raised $112,733 for Valley charities. For ticket information and event details, visit tasteofthebiltmore.com. Admission includes complimentary valet parking. COMMUNITY
NB|AZ Volunteer of the Quarter
FIND US ON SOCIAL MEDIA! VISIT NB|AZ on your favorite social media channels, where you’ll learn more about the people and places that make Arizona a great place to live, work and dream. Like us on Facebook, and follow us on Twitter, Instagram and YouTube, to get these amazing stories delivered straight to your newsfeed. FACEBOOK
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Summer 2019 | ElevateAZ.com
EACH QUARTER, National Bank of Arizona selects one associate as the Volunteer of the Quarter. This associate is picked from a wide selection of individuals, all dedicated to giving back to their communities. For the first quarter of 2019, NB|AZ selected Marion Amoroso, receptionist, Corporate Headquarters, for this distinguished honor. As a volunteer at Amber Creek, a memory care community for older people challenged with dementia and Alzheimer’s disease, she teaches a tai chi class to residents at the home in Scottsdale. Tai chi is an excellent form of exercise as it helps with balance and flexibility, and incorporates some stretching and deep breathing. Marion usually has 12 to 15 residents (sometimes more) who participate in her class. The number of people living with Alzheimer’s disease and other dementia-related conditions is quickly growing in the U.S., and especially in Arizona where many seniors choose to retire. Even though scientists have struggled to find an effective medical treatment for those suffering from the disease, this ancient Chinese martial art has emerged as a potentially potent way to help stem the tide. Research shows that people who live an active lifestyle can slow the progression of Alzheimer’s and dementia. “I am so fortunate to have this opportunity at Amber Creek, and to have an employer like National Bank of Arizona, where we are encouraged to volunteer, give back, and be an active part of our communities,” Marion says.
CONNECT
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Making Spaces
B
UILD A BETTER mousetrap,” goes the famed Ralph Waldo Emerson misquotation, “and the world will beat a path to your door.” But in 2016, Diann Peart and Kandie Konomos learned there were some important details missing from that adage. Up until then, under the company name Truce, they had been making eco-friendly cleaning products in a little house on Peart’s property and selling them at public markets. But when they were ready to expand, companies refused to ship the 55-gallon drums of rubbing alcohol and hydrogen peroxide they required to their residential address. What Truce needed was a warehouse space with a loading dock. They found this—and more—at MAC6. Founded in 2011, the owners of MAC6, a traditional co-working office space in Tempe, purchased a building a few miles away a couple of years later as a place to house the tech companies it invested in. It espouses an ethos called “conscious capitalism,” which encourages companies to examine how their own business impacts everything around them. “Our three rules for the manufacturing space, for example, are no heavy smells, no heavy sounds, and no jerks,” explains
Tempe firm houses co-manufacturing community
MAC6 president and “Creative Excitant” Kyle McIntosh. As of today, the company has expanded into three separate buildings housing 79 companies: one dedicated to a mix of co-working and traditional office space (50,305 square feet); another straight office space (61,073 square feet), and a third set aside as co-manufacturing spaces (38,000 square feet). Claiming a 130-square-foot spot in the co-manufacturing space in 2016, Truce received deliveries there, ferrying the large drums back home where they continued to make their cleaning products. Although only about a mile away, this arrangement took its toll in time and effort. About six months later, they grew their MAC6 space to about 500 square feet and have been expanding ever since. As of this April, they have four employees, two interns, and about 1,600 square feet, says Peart, who is now the company’s principal. “So we grew into MAC6—or MAC6 grew around us.” Walking into the co-manufacturing space at 941 S. Park Lane in Tempe is a revelation. An enormous warehouse subdivided by chain-link fencing roughly 10 feet tall, it’s currently home to about 33 companies, according to McIntosh. The 65- to 85-cents-per-square-foot annual lease each
Diann Peart, Truce
Jena Nagamine and John Garrard, Verano Bathery
Kyle McIntosh, MAC6
Summer 2019 | ElevateAZ.com
tenant signs also entitles them to shared water, gas and electricity. They also gain access to a forklift, pallet jacks, a technologically-equipped conference room, and perhaps the most valuable perk of all, their fellow tenants. “Everybody looks out for everybody else,” Peart observes. MiaBella cofounder Payton LaCivita, for example, manages the Amazon accounts of Truce and several other tenants. In turn, Teaspressa founder Allison DeVane sometimes borrows Truce’s large scale, and Truce borrows DeVane’s heat sealer. It puts Peart in mind of her public market days—instead of borrowing and lending tape and markers, it’s now scales and heat sealers. And soap. Verano Bathery co-founder Jena Nagamine occasionally hands out the unsellable results of their soap experiments in the co-manufacturing building. She and husband John Garrard moved into a 10-by-12-foot space sublet from Lafayette Avenue Ceramics last August, in part for that vital freight dock. Although they aren’t ordering drums of ingredients yet, they will be soon, including sodium hydroxide. The chemical has caused them some trouble in the past; a former supplier told them they’d have to be reported to a government agency because of the amount they ordered. “It’s used in all sorts of really terrible things,” Nagamine points out. “It’s also an absolutely essential ingredient in soap.” In the short time Verano Bathery has been at MAC6, they’ve already joined forces with other tenants on projects, she says. “We’re collaborating with Truce to do some little gift bags.” However, the main reason they moved into MAC6 is much more fundamental. Their tiny space “gives us a separate space to do production and things like that,” she says. “It’s really helped, mostly just mentally, to have it out of the house.” While MAC6 began life as an incubator, it’s only invested in about six companies on the co-manufacturing side, McIntosh says. Today, it’s concentrating more on creating a debt fund that will help early-stage companies overcome some financial hurdles without having to give up equity. Long term, MAC6 hopes to market what McIntosh describes as its “high-touch community management approach,” he says. “We’re working on how to take what we’re doing, put it in a box so that it’s very process driven, and then grow that side of the business as well.” In other words, a better mousetrap. Aaron Berman
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Mastro family perfects the art of fine dining
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resilient restaurateurs
F THE NAME MASTRO gets you daydreaming about sizzling steaks and seafood towers, you’re not alone. What you may not realize is that the eponymous restaurants that, in 1999, launched the family into the fine dining business— with such restaurants as Mastro’s Steakhouse and later Mastro’s Ocean Club and Mastro’s City Hall—were sold in 2007 and are currently operated by Landry’s. At that point, the restaurant group’s founder Dennis Mastro, and his sons Mike and Jeff, had to take time off due to a non-compete agreement. Once it expired, it was time to fire up the grill again.
“My brother and I wanted to continue in the business. Our dad is currently in an invaluable consulting role,” says Jeff Mastro, CEO of Prime Steak Concepts. The new company’s first venture was Dominick’s Steakhouse, a traditional-style steakhouse that opened in 2011 at the Scottsdale Quarter. “As we thought about it, we believed that there was a draw for a more contemporary steakhouse—but not overly modern,” Mastro says. “So, in 2014, we opened Steak 44, which has a lot of traditional items on the menu, but also more interesting ones, too.”
(Left to right) Mike, Dennis and Jeff Mastro, Prime Steak Concepts
president. So I manage the CEO functions, while he handles all the development aspects as we grow new stores. Dad is more in an advisory role, and having that expertise and wisdom is invaluable. And then Scott Troilo, who partnered in creating Prime Steak Concepts, also serves in a consulting role. He’s like a brother to me and Mike, so it’s truly a family business in that sense.” Mastro recognizes that the amiable relationships are not only critical to their success, but somewhat unusual. “As I got older and heard more stories about family businesses, I became ever more grateful that it really works for our family Jeff Mastro dynamic,” he says. “I’m CEO, Prime Steak Concepts younger, but Mike and I are only 14 months apart. He went straight into the restaurant business, while I went to law school and started in 2002. I guess we’re similar in some ways, but very different in others. I often joke with him that over the all the years we’ve been in business, I think we’ve had one argument.” From a broader perspective, the family focuses on the challenges that are specific to the fine-dining business. “Whenever we open a new store, we have to be ready for it, because people have much higher expectations at this level,” he says. “You spend four or five weeks hiring people, and another month getting everybody trained before you can even open your doors. After that, there’s constant training, both daily and at the boot camps we do three times a year. Honestly, our people love it, because they like to stay on top of everything.” The Mastros’ recipe for success also includes managing growth. “One of the most important things that my dad said all the time is don’t grow too quickly,” Mastro says. “A lot of restaurant companies will open a second location, then try to open five the next year. That can work, but the fine dining business is labor intensive. If you build too quickly, you won’t The rousing success of Steak 44 in the Arcadia area led have the right personnel in place and can’t watch things the family to launch Steak 48—a tribute to Arizona being properly. You’ve got to be on top of it 365 days a year.” the 48th state—with locations in Houston and Chicago. In As the family looks to the future, that’s exactly the plan. December 2018, the company opened its first high-end “If things go perfectly, you can open two or maybe three seafood concept, Ocean 44, on the site of the former Harkins stores a year,” says Mastro, noting that there’s a Steak 48 Camelview by Scottsdale Fashion Square Mall. under construction in Philadelphia. The team is also exploring The restaurant business is notoriously challenging, and Beverly Hills, where they previously had success with a family businesses have a similar difficult reputation. How Mastro’s Steakhouse. As far as seafood, it’s still early in the does the family make it work? game—but don’t be surprised if you soon hear the words, “Part of it comes down to defining roles,” says Mastro. “Houston, you have an Ocean 48.” Jake Poinier “Currently, I’m the CEO of the company and Mike is the
“ As I got older and heard more stories about family businesses, I became ever more grateful that it really works for our family dynamic.”
Summer 2019 | ElevateAZ.com
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soul survivors
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Kim and Debbie Sledge, Sister Sledge
Strong family ties impel iconic Sister Sledge to carry on
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T’S LATE APRIL and Debbie Sledge, one quarter of the legendary R&B group Sister Sledge, is juggling packing for a European concert tour and planning a memorial concert to honor her late sister Joni, who unexpectedly passed away in 2017. As most Valley residents would agree, Sister Sledge is local royalty. Like Bruce Springsteen is to the Jersey shore, or the Beatles to their native Liverpool, Sister Sledge has been revered in the Valley of the Sun for their “hometown” band status, with all the attendant love and esteem that designation confers. The sisters—Debbie, Joni, Kim and Kathy (who stepped away from the ensemble in 1989)—started out in Philadelphia, where, from a very young age, they were no strangers to performance and musical entertainment. The daughters of actress Florez Sledge and acclaimed Broadway performer Edwin Sledge, they also enjoyed early musical guidance from their grandmother Viola Beatrix Hairston Williams, an accomplished lyric-opera soprano who gave the siblings some unique vocal training early on, arranging for them to perform at church events and community functions. The sisters’ gentle nudge toward music was never forced, Debbie Sledge is quick to explain. “They—my family—didn’t push us into a musical direction, but it was something that just happened naturally. There was so much music around us, with my parents and our aunts and uncles…we were just a family that loved music, and we absorbed it,” she says. But a real crossroads for the group was when they learned the complex harmonies they became noted for. “We could sing these four-part harmonies and that made a big difference.” Their move westward occurred somewhat piecemeal. Debbie relocated to Phoenix in the late ’80s, when her then-husband got a job teaching at Arizona State University. She loved the area so much, she encouraged her sister Joni and their mother to move to the Valley. “It’s our home base,” Sledge says resolutely.
Summer 2019 | ElevateAZ.com
in the sense that she was such a huge influence on all of us, and she possessed such a brilliant business mind. She had enormous vision.” One of the challenges the group faced in the wake of Joni’s death was whether to continue performing or, instead, take a hiatus. The only answer, Debbie says, was to carry on. “We wanted to honor Joni by continuing to tour—and we didn’t stop. We went on to honor her in every show we performed after she died, and we still do.” Debbie is excited to discuss yet another means of honoring their sister, which will take the form of a tribute concert celebrating Joni’s music and spirit. With a date yet to be determined, the event is shaping up to be a highlight in the sisters’ illustrious career—as well as a “must-attend” show for fans and followers of Sister Sledge. “We want to honor her and her legacy,” Debbie notes. The tribute concert will include a full slate of celebrity performers—musicians and entertainers who’ve also been touched by Sister Sledge through the years— performing many of Joni’s visionary songs. “In some capacity, all of the artists we’ve met along the way want to do something,” Debbie says. “I’m so excited about it; it’s going to be an elegant evening—that I can assure you.” As to the future of Sister Sledge, fans and friends won’t have to worry if one of their favorite groups is contemplating retirement anytime too soon. As Debbie states without hesitation, “We have no plans of stopping.” “I think one of the reasons that we’re still around [as a performing group] is because of the ‘grace’ we’ve been given,” she adds. “God has been good to us. Also, because we’re a family, we’ve had a huge support network, mothers and fathers and aunts and grandmas who’ve watched over us, kept us together, prayed for us—and also reprimanded us when we needed it! We’ve had each other, our bond, and our faith. And we held that faith and developed it for ourselves to reflect in our music.” And, she assures us, the music will continue. Bruce Farr
Photo: Camilla Camaglia
When they arrived in the Valley, the sisters were already internationally acclaimed musical stars, with a considerable catalog of hits to their credit and a growing audience of international fans. As Sledge describes it, “The band got its start in 1971, and we signed our first recording contract in 1974. That really was the beginning of our professional career, and it just seemed to take off from there.” After a few early hits, Sister Sledge achieved true legendary status in 1979, when their chart-busting hit “We Are Family” first hit the airwaves. Penned by premier songwriters Nile Rodgers and Bernard Edwards, the now iconic, “feel-good” tune went on to capture a 1979 Grammy nomination and chart successfully around the globe in more than a dozen international countries. “It was a major turning point in our lives; it changed our lives drastically,” Sledge says of the song. “It didn’t change us so much in the sense of who we were as people, but, rather, it changed our outlook on what was possible for us. We were asking ourselves, ‘Wow! What’s going on here? Why are we the focus of all these blessings?’ ” More than anything, “We Are Family” helped brand Sister Sledge, defining the precise direction their music would take thereafter, and stamping the sisters’ act with the very message of solidarity they’d been seeking to share with their audiences. “The song gave us the privilege of being vessels to channel the joy we were experiencing to others,” Debbie explains. “And, as it turned out, that very same joy we were hoping to share was being fed back to us by our audiences.” Despite all the joy emanating from and surrounding Sister Sledge, the group is no stranger to tragedy. The latter occurred in 2017, when Joni Sledge passed away suddenly, at age 60. “It was devastating,” Debbie says. “It left a huge challenge for us as a family and a group
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ATINA ENTREPRENEURS know they fuel the economy, but often aren’t acknowledged by the business community for their contributions. To address this, a small group of women business owners in Phoenix—led by former Arizona state lawmaker Ceci Velasquez— established an organization in September 2018 called ELLA: Empowering Latina Leaders in Arizona. The acronym is the Spanish word for “she” and is pronounced “AY-yuh.” “We formed this team of women, ranging in age from millennials to veterans in business and politics, to pay our respects to those women who have come before us, and to advocate, educate and celebrate,” says Velasquez, who also works as a community support representative at the local headquarters of a tech company.
According to Velasquez, ELLA wants to advocate for economic equality for women entrepreneurs, educate the larger community about the accomplishments of Latina business owners, and celebrate women belonging to the business community. “We want to call attention to the reality that a Latina typically earn 53 cents for every dollar a white male earns,” she says. That fact is a centerpiece of Latina Equal Pay Day, observed every year on Nov. 1 to signify that a Latina must work an extra 10 months and one day to earn as much as a white man earns in a year, according to a report by the National Partnership for Women & Families. Velasquez and her six ELLA co-founders decided to hold a Mujeres Mercado (“women’s market”) last November to give Latina entrepreneurs an opportunity to
Latina Luminaries
Women entrepreneurs bond together to strengthen their economic power
(Left to right) The Mujeres Mercado team: Gloria Eloxx, La Pequena Market; Stephanie Vasquez, Fair Trade Cafe; Luisa Leon, AZ Lotus Art; Ceci Velasquez, ELLA
Debra Gelbart
Summer 2019 | ElevateAZ.com
job is as a social worker. “When I see how passionate these showcase their products that include clothing, accessories, women are about the products they sell, it inspires me to jewelry, artwork, crafts and homemade food items. continue with my own journey of becoming an entrepreneur. Held on the patio of Fair Trade Café in downtown I’m definitely learning from them.” Phoenix—a successful business owned by ELLA co-founder “We’re creating a welcoming space for women to connect Stephanie Vasquez—the event was intended to demonstrate as they uplift and support each other,” that Latina entrepreneurs “are Velasquez adds. “We don’t want to major contributors to the business be competitive with other Latina community,” Velasquez says. She put “We’re creating a entrepreneurs. We want to engage them the word out on social media and 20 welcoming space in a way that hasn’t been done before.” local Latina vendors responded. for women to For many of the 58 vendors who “We were only going to hold the connect as they participated in the most recent market, mercado once,” she says, “but so many uplift and support their businesses may be a hobby people who came to the event asked each other.” at this point, but Velasquez hopes when the next one would be. So we’ve the event will help them transform held three more so far in 2019.” The Ceci Velasquez, Co-founder, ELLA their efforts into significant income. mercado in April attracted 61 vendors. Another incentive for Mujeres Mercado Gloria Elox is an ELLA board member is to encourage shoppers to buy locally made or locally and a regular participant in Mujeres Mercado. She calls her distributed items. business La Pequeña (“Little”) Market and sells beautiful “Shopping at locally owned businesses helps the handmade clutch purses crafted by women in her hometown community so much,” Velasquez says. “It’s such an important of Tepoztlán in Mexico. “The items I have in my tiendita (“little store”) represent my investment in Arizona. Shopping for locally sourced items creates a bond with the community.” culture, my roots and my familia,” she says on her website. Life hasn’t always allowed Velasquez to be as creative as “It’s amazing to see so many Latina entrepreneurs she is today. Now 45, she became a mom at 17 and struggled participating in Mujeres Mercado,” says Elox, whose full-time financially for many years. In 2016, she pleaded guilty to unlawful use of food stamps and was sentenced to a year’s probation and community service. “I should be accountable for my mistakes,” says Velasquez, explaining that she was trying to manage complications from a surgery about three years before that and neglected to notify the state Department of Economic Security that her circumstances had changed. “It was not at all intentional. That experience convinced me that as a woman of color, I have to try harder to help myself and my family financially. That’s one of the reasons why ELLA was created.” The next market, the first-ever indoor event, is scheduled for June 27 at Tradiciones in Phoenix. Mercado Mujeres Noche Edicion will feature local vendors, artists and entertainment. In addition, another dimension of ELLA is in the works. Su Voz (“Your Voice”) is envisioned as a series of empowerment talks on topics that are important to the Latina community, particularly women business owners. “One topic I’d like to tackle is how do we, as entrepreneurs, deal with everyday stresses when the roles we’re filling now have been male-dominated for so long?” says Velasquez. “Getting together to discuss issues such as this will help all of us realize that many of us have similar concerns and that we’re not alone.”
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RIZONA ATTORNEY January Contreras remembers the day six years ago when a female custodian entered a family justice center where she served. The program had lost funding, and Contreras and her colleagues were packing boxes and getting ready to leave. “A woman came in and she was in her janitorial uniform. She wanted help because she couldn’t handle the abuse in her home. I will never forget the anguish on her face when I had to tell her we couldn’t help her,” Contreras remembers. Contreras referred the woman to programs in the community, but she knew she had to do more to empower women and children to have access to legal resources. “I made a commitment to myself that I would keep making legal resources available. It could be the difference
Legal aid for at-risk women and children ensures a brighter future
balancing the scales of justice between harm and safety for women and for kids,” she says. Four months later, Contreras launched Arizona Legal Women and Youth Services (ALWAYS), a nonprofit community legal center working to support women and children aged 24 and younger who have faced domestic violence, human trafficking, homelessness or foster care. Since then, the founding CEO and her team of volunteers and supporters have empowered women and children to achieve stability and independence by overcoming legal hurdles. “We serve kids and young people who’ve been through unimaginable situations,” says Contreras, who served on the White House Council on Women and Girls under the Obama Administration. “When we have the opportunity to help people open doors for themselves, that’s what we’re proud of.” Through partnerships with social services organizations such as UMOM New Day Centers, Phoenix Dream Center, Our Family Services, one.n.ten, Tumbleweed Center for Youth Development, and the Department of Child Safety, ALWAYS helps young women and children obtain housing, employment, education and legal immigration status. “When you put together free legal services with supportive services in a wraparound way, it just multiplies the opportunities for success for those we serve,” says Contreras.
Access to legal counsel is a key component for at-risk women when it comes to seeking safety for themselves and for their children. A report from the Institute of Policy Integrity shows that access to legal services reduces domestic violence by up to 21 percent. Yet in Arizona, no-cost legal services for women and children are hard to come by. A study from the National Network to End Domestic Violence shows that legal counsel is the No. 2 unmet need in Arizona behind housing. To ensure the safety of families, one of ALWAYS’ cornerstone programs, called Safe and Stable Families, helps women obtain orders of protection, navigate child custody issues and gain access to legal representation. One ALWAYS client stands out in Contreras’ mind. Having endured ongoing spousal abuse, the young mother never called the police on her husband. After being alerted by neighbors, law enforcers came to her door and transported the woman and her children to the safety of a domestic violence shelter. But leaving her abusive husband was just the start of the young mother’s journey toward a better life. Terrified and alone, she would now have to face the daunting process of proving that the abuse ever happened and secure protection for herself and her children. That’s when ALWAYS was able to help. “We pulled the medical records from when he put her in the hospital, we pulled the police reports from when he had abused her, and we were able to share threatening text messages that she had gotten. We were able to give her the representation in court that she deserved and allowed her to get orders in place to protect her and her children,” says Contreras. Two years later, the mother brought flowers to Contreras’ office when she got her first nursing certificate. “She was smiling instead of crying,” remembers the lawyer. “When people like her come back and tell us I never would have been able to do this without your help, it’s really gratifying and it inspires us to keep going.” For undocumented immigrant youth who are homeless or who are victims of trafficking or abuse, the road to self-sufficiency is all too often a dead end. One of the major obstacles encountered by young immigrants is a lack of legal resources. That’s why Contreras launched the Opportunities Through Immigration initiative at ALWAYS. “We become their lawyers and we help them from day one to the day that they are given a green card or they are sworn in as U.S. citizens,” she says. Other signature programs, including New Roads to Success and Justice for Survivors, enable trafficking survivors and homeless or abused youth to clear any misdemeanor criminal history, obtain identity documents and orders of protection, as well as gain access to legal representation. “We’re always grateful to have outcomes that make a difference in people’s lives,” says Contreras. “Our clients have overcome enormous odds and are still trying to scratch their way to achieving their own dreams and it’s a real privilege for us to be able to help them do that.” Leigh Farr
“When we have the opportunity to help people open doors for themselves, that’s what we’re proud of.” January Contreras CEO, Arizona Legal Women and Youth Services (ALWAYS)
Summer 2019 | ElevateAZ.com
January Contreras, CEO, Arizona Legal Women and Youth Services (ALWAYS)
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NB|AZ’s Family Business Services helps grow family businesses
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focus on the family
F
AMILY BUSINESSES are crucial to the American economy. Consider this: The approximately 5.5 million family-owned businesses in the U.S.—those operated by at least two principals related by blood or marriage—employ 60 percent of the nation’s workforce and generate 78 percent of all new jobs in this country. That’s according to SCORE, the Service Corps of Retired Executives and the Family Owned Business Institute at Michigan’s Grand Valley State University. All those businesses need banking services provided by an institution that understands the unique needs of entrepreneurs running a company where their relatives are also their business partners.
John D. Lewis, Senior Vice President, Business Banking
For the past four years, Family Business Services has been a dedicated department within Zions Bancorporation, the parent company of National Bank of Arizona. “Like the other divisions of Zions, NB|AZ has a long rich history of working with family-owned businesses,” says John D. Lewis, Senior Vice President, Business Banking. “NB|AZ understands the importance of helping those businesses grow, succeed and then prepare for transition to the next generation. The bank is focused on helping businesses as they go through the various stages of the business life cycle.” According to Lewis, NB|AZ can introduce businesses owners to a network of qualified individuals inside and outside the bank to help their businesses thrive. “Through experience with other businesses, NB|AZ bankers can provide businesses with methods for their industry or their stage in the business life cycle.” NB|AZ publishes a family business newsletter three times a year highlighting family businesses that are also NB|AZ clients. The newsletter also provides information about topics such as succession planning, culture within businesses and managing change. The most recent newsletter profiles Olsen’s Grain, a family-owned business in Chino Valley, Arizona, that sells food for livestock and pets. In business since 1979, the company is owned and run by Mike and Sherrill Olsen, and their children and their spouses. As the business evolves, the Olsens are developing a succession plan and determining who will lead the company’s success and future. Other articles address building a foundation for multigenerational success, and how generational differences affect a family business. Zions Bancorporation has held family business conferences where family businesses can connect and learn from each other, says Lewis, adding that NB|AZ also works with Family Business Magazine, an exceptional resource for businesses. “At the end of the day, we are passionate about family businesses because we know how important these businesses are to the economy of the communities that we serve,” Lewis says. “Family businesses are an important part of our client base and we have a desire to help them succeed.” Debra Gelbart
Banking on Family Family businesses maintain an important role in the community and National Bank of Arizona is dedicated to helping these businesses grow. NB|AZ® has specialized education and financial services to help family businesses manage growth and transition into the future. “My parents, my siblings and I have been involved in the banking business for more than five decades now. We’ve also developed other business interests in broadcasting and real estate and found that these businesses brought our family together with a common sense of purpose. Now, we’ve launched Family Business Services to support your family business’ success.” - Harris Simmons, Zions Bancorporation Chairman and CEO To learn more, visit NBAZ.com/familybusiness or email John.Lewis@nbarizona.com
NBAZ.COM | A division of Zions Bancorporation, N.A. Member FDIC
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STORY LISA VAN LOO PHOTOGRAPHY MARK LIPCZYNSKI
perfect partnerships In the world of business, friends and family can make for successful collaborations
F
are as American as apple pie. They’ve been coined the “backbone” of the U.S. economy and their presence can be felt across seemingly every industry, from food service to footwear to finance. AMILY-OWNED BUSINESSES
Statistics illustrate their importance. Family-owned businesses account for 64 percent of the U.S. gross domestic product, and they are responsible for creating 78 percent of all new jobs, according to SCORE, a nonprofit organization that mentors business owners. Beyond economics, family-owned businesses can be steeped in tradition, and many have origin stories that are as unique as the industry they’re in.
Hubbard Swim School |
PHOENIX
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kids were growing up, they had to answer the phone at the house, every time it rang, as “Hubbard Swim School.” With eight children, it meant the phone rang a lot, and it also meant friends on the other end of the line were often confused about where exactly they had called. They had called a home…but it was also a business, one that every family member has had a hand in over the years and many still do to this day. Two decades after its quaint beginning, Hubbard Swim School is preparing to open its fourth location in the Valley later this year. “We both had an entrepreneurial spirit,” Bob says of himself and his wife, who have worked together full-time since 1992. “Back then, we felt it was time to chase a personal dream and build our own business.” Despite starting at home, the Hubbard family business doesn’t bring work home, which is one of the reasons Bob believes the company has had such success. It’s a commitment HEN BOB AND KATHY HUBBARD’S
Summer 2019 | ElevateAZ.com
Bob and Kathy Hubbard, founders, Hubbard Swim School
they made to themselves and the business years ago. “We never break away from a family atmosphere to do business,” he says, pointing to a recent family dinner that brought together about 30 people, many of whom work for the Hubbard Swim School. “When we’re with family as a family, we’re there and we drop the curtain. If there’s work, we do work within a work timeframe.” And anyone who does work for the business needs to move up through the ranks, even family members. Bob says he believes that it’s important for everyone to earn their positions within the company through experience, also noting that a number of his staff members started as swim instructors. He said swim instruction is unlike the homebuilding industry, where he made a pit stop earlier in his professional life. With swimming, experience breeds invaluable expertise. “I can’t swing a hammer for beans, but I could manage people who know what they’re doing,” he says. “But here, we’re so hands on, you have to know the ‘whys.’ ”
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Bruce Meier in his workshop at Ben’s Saddlery in Wickenburg.
Ben’s Saddlery |
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WICKENBURG
RUCE MEIER knows his way around a saddle, but he admits he wouldn’t know what to do without his wife working by his side. As owners of Ben’s Saddlery in Wickenburg, the two split their duties at the 70-year-old business allowing each of them to flourish where they are most skilled. Bruce handles all of the custom saddle work, and Jennifer takes care of the retail area. “So far, we’ve been able to make it all work. I’d be lost without her if she wasn’t here,” Meier says of his wife. “She takes care of the people up front. That’s a huge part of our business. It’s probably 70 percent of our business.” Ben’s Saddlery is somewhat of a landmark in a town that is known for its equestrians and its enthusiasm for team roping. It opened in 1949 and since, has changed ownership only twice, both by using the same apprenticeship-themed formula. Meier was trained on all the techniques Ben Billingsley learned before taking the store over from its
original owner in the late 1970s. Except, Meier never thought he would own the place. “My plan was to work for him the rest of my life. I thought I’d be lucky to keep this thing afloat for two years,” Meier admits about his shaky confidence as he entered an ownership role. “The other shoe was going to drop, I knew it. But we made it work despite ourselves.” Meier says Ben’s Saddlery does more saddle repair than anybody in the entire Southwest, and its retail area is always stocked with upwards of 500 pairs of boots and other western necessities. Of course, some people just stop in to have a look. They want to see how saddles and chaps are made. And Meier loves that. “It’s a real novelty for them to see people working on saddles or sewing a pair of chaps,” he says. “We’re extremely blessed to be where we are as far as what our store is and what we do and where we live.”
Del Sol Furniture |
A
PHOENIX
LEX MACIAS remembers spending his weekends as a kid at a Phoenix swap meet. For his parents, owners of Del Sol Furniture, the swap meet was the most cost-effective marketing tactic at the time. More than 20 years later, Del Sol Furniture has three locations and Macias, the company’s vice president, has 12 official years of experience in the family business, not counting the weekends when he helped out as a kid. “We have a 44,000-square-foot warehouse now,” Macias says of how the business has matured over the years from the small storefront where it began. “We probably have 20,000 products, as well.” The success of the business, which Macias runs with his parents and his cousin, is anything but accidental. When it began, Macias says his parents recognized an opportunity to work with an underserved Hispanic market and, as
immigrants to the U.S., the two understood the culture and language better than their competitors. “It was what they knew,” Macias says. “Nobody else was going after that consumer.” And, they made a strategic decision to offer in-house credit for customers who are increasingly shifting from purchases that are needed to ones that are wanted. While things are subtly changing in terms of how often Macias sees his mother at work, he admits he doesn’t expect to see the day where she retires in a traditional sense. The store is her passion. “I don’t think my mom is ever going to be done working. She loves it,” Macias says. “We work well together and it’s nice to have lunch with her every day that she comes in. I plan to do this as long as I can. I really enjoy it.”
Alex Macias with his mother Rosa, who co-founded the company in 1997 with her husband Venancio. Summer 2019 | ElevateAZ.com
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Purse Hoarder Boutique |
N
GOLDEN VALLEY
wanted nothing to do with guns, until one was pointed at her 30 years ago. Now, she channels the life-altering experience as a survivor of gun violence to make a statement by selling handbags specifically designed to carry concealed weapons. “I’m all for women protecting themselves. It’s not guns that kill. It’s people,” Granniss, who was shot five times, says. “To me, it’s a strong testimony to the fact you can get through anything. I’m proud that I walked away from that.” After recovering from the shooting, learning to use a weapon and taking a concealed weapons course, Granniss opened Purse Hoarder Boutique in 2014. She and her business partner Norma Thaxter (aka The Purse Lady) are based in Golden Valley, but the bulk of their business is done at vendor-driven events and gun shows. “We have a pretty big following there,” Granniss says. One of the reasons Purse Hoarder is so popular among ICKY GRANNISS
women who carry concealed weapons is because each of the bags sold by Granniss and her partner is exclusive. They only stock one of each bag, which they say, gives the woman buying it a unique confidence in knowing they’ve snagged an exclusive buy. And if they don’t carry a weapon? They just enjoy the extra pocket. Granniss and her partner, a woman Granniss considers “like family,” also both have a keen understanding of the market they serve. Not only does their clientele champion the second amendment, but they’re also frequently dog lovers. Knowing that, Granniss creates western and Second Amendment-themed dog cushions that Purse Hoarder sells at the shows it attends throughout the year. “It’s something I love to do,” Granniss says of the cushions. “You gotta do what you gotta do for small business. You look for every opportunity.”
(Left to right) Norma Thaxter (aka The Purse Lady) and Nicky Granniss started the Purse Hoarder Boutique in 2014.
ON THE ROAD to # 1 IN SBA LENDING IN THE STATE
National Bank of Arizona is proud to have climbed the ranking to become the No. 3 SBA Lender in 2018. During the year, NB|AZ® approved 93 SBA-guaranteed loans totaling more than $10.75 million statewide. We are No. 3 this year, but watch what we do next. VISIT NBAZ.COM TODAY
P-RANKED TO
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Gilbert’s
Grand Plan
STORY BRUCE FARR PHOTOGRAPHY MARK LIPCZYNSKI
The once humble farming to w n e v o lv e s i n to a m o d e l for progressive living
Summer 2019 | ElevateAZ.com
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What does it take
for a dusty, nondescript,
76-square-mile parcel of Arizona desert to, over the decades, transform itself into one of the most desirable, thoughtfully progressive communities in the Southwest? If the mayor of Gilbert and many of its leading citizens are correct in their assessment, the crucial ingredient is a passionate, highly motivated populace, people who are willing to shake off the status quo and take some chances. And, by any measure, that’s what Gilbert was and is all about.
A town was born Once hailed as the “Hay Shipping Capital of the World,” Gilbert came to its eponymous appellation in 1902, when local citizen William “Bobby” Gilbert sold a tract of land to make way for the Phoenix and Eastern Railroad Company to build a freight and passenger line that stretched, sinuously, from Phoenix to Kelvin, Arizona. Newly minted, Gilbert soon became a bustling farming community thanks to the 1903 construction of the Consolidated Canal and later, in 1911, when Roosevelt Dam assured a steady flow of water to the area. Like the histories of so many other Southwestern communities illustrate, with the railroad and a steady supply of water, it wasn’t long before people migrated to Gilbert and a town was born.
Throughout the early 1900s, Gilbert began to take shape, with a post office and grocery store opening their doors, and scores of dairy farmers buying cattle and staking out their acreages. But despite its initial flurry of development, the town settled into a long static period, maintaining a population of slightly more than 1,000 residents for well over 150 years. As far along as 1970, in fact, the population was still under 2,000 people.
Defying the odds In the 50 years following, however, Gilbert seemed to awaken to its destiny, defying demographics’ pundits who assumed the town would slowly lose its identity and get swallowed up in the Phoenix expansion juggernaut. Instead, with the help of some chance-taking town government leaders and a handful of local visionaries who saw the community’s potential, Gilbert—whose population now tops 250,000—has carved out its own unique identity as one of the most enviable places to live in Arizona, if not the entire Southwest. As it’s continued to progress over the past couple of decades, the town has amassed a bundle of accolades. Just consider these few: Gilbert was designated as the fastest-growing municipality in the United States. It was ranked by CNN’s Money magazine as one of the best places to live in the country. It was also named one of the top 25 safest cities in the United States. So how did it manage such a transformation?
‘Stick-to-it-tiveness’
Joe Johnston, Gilbert visionary
As Gilbert’s current mayor Jenn Daniels suggests, the town’s successful growth is owing in large part to the energy and vitality of its citizens, to their vision and “stick-to-it-tiveness.” Mayor Daniels knows of what she speaks; a longtime resident of Gilbert, she’s been an elected official in town since 2009, and its mayor for the past three years. “There are a lot of longtime farming families who still live here and have invested in Gilbert for generations now,” the mayor explains. “They once provided for the agricultural needs of the area, but now they’ve converted their efforts and invested themselves into helping the community grow, by, among other things, creating some beautiful housing developments that are so desirable for residents. “These families care deeply for Gilbert and, clearly, they’re here to stay,” she continues. “They’ve found ways to replicate that hardworking spirit of Gilbert that was the town’s foundation, and they perpetuate that spirit over and over again.”
Town & city At its current population and growing, Gilbert could easily petition to become a city, but the mayor says that, thus far, it’s not in the cards. “It’s come up often,” she says, “but our residents love what being a town denotes; it’s a part of our ‘story.’ They love that image, that idea of a small community whose people take care of one another and look out for each other. It has a lot to do with the concepts of nostalgia and identity, and, really, there’s no economic or financial incentive for us to convert to a city. Sometimes, it just makes telling our Gilbert ‘story’ a little more difficult.” Whether a town or a city, though, all that development over a relatively short period of time can create growing pains. The mayor isn’t afraid to articulate the challenges associated with them. “The biggest challenge to our continued growth is staying ahead of that growth from an infrastructure standpoint,” she explains. “We use a formula that utilizes one-time capital dollars for one-time expenses, and that’s really for the implementation of capital projects— your streets and roads, your sewer and water systems, all these components that you need to stay ahead of growth,
JENN DANIELS MAYOR, TOWN OF GILBERT
True grit One doesn’t have to search very long or hard to find the personification of Mayor Daniel’s model Gilbertian (if that’s the term)—the type of resident with the passion and perseverance to literally shape what Gilbert has become and help ensure its future. She mentions local entrepreneur Joe Johnston, whom she says serves as a great example of the sort of long-term, visionary resident who time and again has demonstrated the forwardlooking vision to see what’s possible in this community. Residents of the town for more than 50 years, the Johnston family bought a 320-acre farm in Gilbert in 1960 and, throughout the many decades since then, have become trailblazing pioneers for Gilbert’s prosperous, yet thoughtful development into a premier, forward-thinking Southwestern community. Perhaps Johnston’s hallmark “gift” to the town’s sense of itself is his brainchild commercial/residential real estate development called Agritopia. In 2000, he collaborated with land planners and community developers, landscape architects and the town managers to spearhead the evolution of the family’s vision for their farmland: creating a village neighborhood that harkens back to an earlier, simpler time, and honors the farming traditions of the past.
Conscious connections Joe Johnston describes it as a village built with a sense for what so many Americans yearn to recreate in their lives: a model
Jenn Daniels, Mayor, Town of Gilbert
Summer 2019 | ElevateAZ.com
“OUR RESIDENTS LOVE WHAT BEING A TOWN DENOTES. THEY LOVE THAT IDEA OF A SMALL COMMUNITY WHOSE PEOPLE TAKE CARE OF ONE ANOTHER AND LOOK OUT FOR EACH OTHER.”
and the flow of residents who desire to move here.”
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neighborhood made real and set on the very foundations of the farm where Johnston and his siblings grew up. Johnston’s dream for Agritopia—and, by extension, for Gilbert itself— involved, as Agritopia’s website articulates, “A slower pace. A shared life. A connected existence.” “All the original farm buildings and structures that were there have been repurposed—modified and upgraded—for the suburban environment,” Johnston notes with pride. The project wouldn’t have come together so successfully without all the involved parties being able to work together toward a common vision, he continues. “The government for the town of Gilbert, and even just the general vibe from the townspeople, is that they are probusiness,” he explains. “But the difference in Gilbert is that they are looking for real quality businesses and people who are serious about doing a good job and serious about being a part of the community.”
Forward thinkers According to Johnston, another reason Gilbert is such a great place to live and work can be attributed to the town’s economic development department. “The economic development arm of the town is so active and forward-thinking,” he says. “Mayor Jenn [Daniels] and her staff are trying their best to run an efficient government and create a good, barrier-free relationship with businesspeople in the community.” In 2015, the Johnstons did something else to benefit their town, and help assure its forward-thinking identity. They formed the Johnston Family Foundation for Urban Agriculture in an effort to protect the 11-acre certified organic farm that is at the heart of Agritopia. By extension, the foundation is focused on preserving urban farming in Arizona through Downtown Gilbert, home to the iconic Gilbert water tower
“THE TOWN MANAGERS ARE NOT ABOVE RISKTAKING, WHICH IS UNUSUAL FOR TOWN GOVERNMENT.” JOE JOHNSTON ENTREPRENEUR
production, beauty and education. “Through the Farm at Agritopia, we are bringing the community together to share our passion for growing, through CSA memberships, events and volunteer programs,” Agritopia’s website says.
10-minute rule A lot of what the Johnstons and other community leaders have accomplished is owing to the way the town is managed and run. “They [the town managers] are not above risktaking, which is unusual for town government,” he says. Humorously, Johnston relates an anecdote that appears to ensure that he and his family will continue to dream up ideas and projects for the benefit of Gilbert. In the early days of his entrepreneurship, Johnston’s various business enterprises grew in geographic scope that took him far beyond the confines of Gilbert. “My wife, Cindy, laid down an edict that I was thereafter restricted to doing things ‘no more than 10 minutes from home,’” he quips. “That has turned out to be a very positive development because I couldn’t think of a better community than Gilbert to be restricted to. It’s been a huge blessing in disguise.”
Congratulations Bridget Cooney Senior Vice President Retail Banking Group Manager
RECOGNIZED AS ONE OF ARIZONA’S 2019 MOST INFLUENTIAL WOMEN Bridget works as a champion in the Retail and Executive Banking community while embodying the values that National Bank of Arizona stands for. Her dedication to her career, team, and most of all her passion for her community exemplifies Bridget’s work ethic. We’re proud to work with such an astounding leader. National Bank of Arizona was named No. 1 bank by Ranking Arizona, and without leaders like Bridget, recognitions like this wouldn’t be achievable.
NBAZ.COM | A division of Zions Bancorporation, N.A. Member FDIC
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FA M I LY VALUED Family-owned businesses have eyes on past and future
STORY AARON BERMAN
A
never truly closes. Long after the doors have been locked and the inventory taken, its members must navigate not only the challenges of keeping an enterprise afloat, but also maintaining a work-family balance, all while keeping one eye on the future of their company. FA M I LY- OW N E D B U S I N E S S
It’s a balancing act that’s currently taking place in a majority of American businesses today. According to the U.S. Bureau of the Census, 90 percent of businesses in the country are family-owned or controlled, including 35 percent of Fortune 500 companies, says Family Enterprise USA. In Arizona, 38.9 percent of the 58,455 companies that responded to the Census’ 2016 Annual Survey of Entrepreneurs were family owned; 38 percent in greater Phoenix alone, according to the Greater Phoenix Economic Council. The rewards of a family-owned business almost go without saying: potentially greater job security, an intimate understanding of the firm’s decision makers, and the opportunity to ultimately leave one’s children a business legacy. But the arrangement also carries its own unique challenges.
The original location of Olsen’s Grain in Chino Valley, where it first opened in 1979.
WHAT’S BEST FOR THE BUSINESS
for the business.”
MIKE OLSEN, OWNER, OLSEN’S GRAIN INC.
Summer 2019 | ElevateAZ.com
location, and ultimately supervised the construction of the This summer, Olsen’s Grain Inc. will celebrate 40 years Flagstaff and Clarkdale stores. of supplying pet and livestock feed to several Arizona “We’ve probably succeeded over the years by real strong communities, all under the watchful eye of the Olsen family. communication with each other and a strong sharing of During that time, they’ve tackled everything from expansion ideas,” says Mike. “And always coming to an agreement that’s to capitalizing on trends (hello, “backyard chickens”), all best for the business.” while making decisions as a family. Today, those best interests are guarded by a management “It’s really about consensus building,” explains owner team that includes Mike’s son Kyle (feed mill and customer Mike Olsen. Along with his wife Sherrill, and through the service manager at the Chino Valley location), and Dan’s financial backing of parents John and Ann, the Olsens stepdaughter Kristi Hubbard (Flagstaff store manager). bought Chino Valley Grain Co. from Ken and Lavon Meanwhile, Mike and Sherrill, Cooper in 1979. (The company his siblings and brother-in-law dated back to at least the 1940s, all serve as a board of directors Mike recalls.) “We’ve probably succeeded in an advisory role. In 1980, they were joined over the years by real strong With roughly 80 employees; by Mike’s sister Kathy and her communication with each locations in Prescott, Flagstaff, husband Steve Sischka, who other and a strong sharing Dewey, Chino Valley and Verde has handled all the marketing. Valley; and with both sales and Mike’s brother Dan and his of ideas. And always coming customer counts continuing wife Barb came on board in to an agreement that’s best to rise, there is a lot at stake. 1983 to manage the Dewey
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Which makes it all the more important that “everything is on the table and talked about, and that there are no issues that could create conflicts. That’s been difficult at times,” says Mike. “In the end we’ve always been able to work it out and come to an agreement.”
BUSINESS-FAMILY BALANCE Clear communication is vital to a family business, agrees Stacy Pratt Fisher, founder of female-entrepreneur coaching practice The W Collective in Scottsdale. But so is maintaining clear boundaries between work and family life. “As entrepreneurs it can be challenging to not let work bleed into your home life, family dinner time, and every date night. The same for not letting too much personal life show up in the business,” she says. Be clear about the capacity in which you’re coming to a conversation, she advises—are you speaking as a CEO or as a parent, for example. “Setting the intention and showing up in the role in which you need to have this conversation is the Number 1 issue. A close second is knowing your role.”
PECKING ORDER “Typically, the biggest challenge to running a family-owned business is deciding who has final say on major decisions,” contends George Gebran, who co-owns U.S. Egg—a local
restaurant chain specializing in breakfast and lunch—with brothers Mike, Mario, and Gebran. “In our case, it’s simple: It’s age/experience oriented, so Gebran has final say on all major decisions. This has led to our success because we know who’s in charge, and we don’t challenge the authority. If we’re split and aren’t sure what to do, then we run it up the flagpole and have my father decide.” The patriarch, Oscar, now 75, was already a successful restaurateur in Cedar Rapids, Iowa, when he moved the Gebran clan to Arizona in 1991 to keep them all together after his two eldest sons enrolled at Arizona State University. Once in Arizona, Oscar snapped up U.S. Egg in Tempe, originally founded in 1986. Over the next 10 years, he ran that location with his four sons and daughter Vera before opening their
“Typically, the biggest challenge to running a family-owned business is deciding who has final say on major decisions.” GEORGE GEBRAN, CO - OWNER, U.S. EGG
The Gebran family bought U.S. Egg in 1991 and since then, has grown to six locations Valleywide.
second location near Old Town Scottsdale in 2000. Today, U.S. Egg boasts six locations and 230 employees. This success is thanks, in part, to knowing their roles. George oversees marketing and advertising, Gebran takes care of operations and expansion, Mike accounting and human resources, and Mario handles everything related to the kitchen and food, from menu planning and recipe development to testing and cooking. You don’t always get full cooperation in families, points out John Lewis, NB|AZ Senior VP Business Banking Regional Manager. “I’ve experienced some cases where the business owner has family members involved, but they don’t have the capacity to step up and become owners. Sometimes you see businesses form a board to reduce emotions from impacting decisions and to keep things civil between the siblings.”
KEEPING IT IN THE FAMILY
Family-owned businesses are economic powerhouses that drive local, national and global economies. Here’s why:
64%
Family businesses account for 64 percent of U.S. gross domestic product...
62%
generate 62 percent of the country’s employment...
78%
and account for 78 percent of all new job creation.
35% About 35 percent of Fortune 500 companies are family-controlled, from small business to major corporations.
90% Family firms comprise 90 percent of all business enterprises in North America.
50+% Small businesses, including many family firms, employ just over half of U.S. workers. SOURCE: CONWAY CENTER FOR FAMILY BUSINESS
Summer 2019 | ElevateAZ.com
Working for a company that your family owns usually means ensuring that the business remains in the family for the foreseeable future. At U.S. Egg, there are 13 Gebran children between the ages of 5 and 16 being groomed to go into the family business, says George. “We wouldn’t sell to anyone outside the family; this is a legacy brand.” Indeed, succession planning is one of the biggest concerns a family business must contend with, says Lewis. “They should meet often and early with their trusted attorney and CPA to ensure that all of that transition happens as seamlessly as possible. We’ve been involved with businesses that didn’t have good advice or planning, and the kids are left trying to sort through problems when the founder passes away unexpectedly.” Case in point, Lewis recalls a company that had a large number of children. “There was no way it was going to support all of the families; it was just not feasible,” he explains. “They had to go through this process of asking who’s going to take it over and at the end of the day, I think two ended up being the owners, and one additional family member stayed on in a key management position. Usually you’re only going to have two to three family members.” Still, the survival of a family-owned company doesn’t always mean it has to be run by the family who started it. The Olsens are faced with a constant reminder of this every time they use their feed mill at the Chino Valley location— the same mill employed by the Cooper family during the Chino Valley Grain days. “We’ve always believed that success of this business is much better for our family—to continue what we did and improve what we do—than to sell it. The next generation may decide to sell,” Mike admits, “but we certainly don’t want to.”
AMERICA’S ECONOMIC ENGINE
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Morenci, AZ
Skirting the border between Arizona and New Mexico, Morenci is home to one of the largest open-pit copper mines in the U.S. The Morenci Mine was established in the late 1800s and since then, has not only pulled the precious metal from the earth, but helped build the Grand Canyon State to what it is today. Find out more about this unique place in the next issue of Elevate AZ.
PHOTO Mark Lipczynski
Summer 2019 | ElevateAZ.com
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IMPROVING OUR COMMUNITY
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CONTACT Pamela Keefe in Nonprofit Banking
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