National Bank of Arizona
t i r i p S a n o z i o f Ar
ising terpr n e e h G ra n d t e t h e t e f M tors o a v o n in e n Stat o y n a C
Aim High
Prescott takes an ambitious turn to the future
OCTOBER 2015
“ NB|AZ believes in our business.” BRANDON SPARKS Founder, Easy-Rest, Inc.
PAUL MICHAEL Vice President, Business Banking, NB|AZ
Rest Assured. Easy Rest 4707 W. Van Buren, Phoenix 602-442-6609 easyrestinc.com
Interested in how NB|AZ can help your business? Contact Paul Michael at 602.235.6000
Member FDIC
AS PRESIDENT and founder of Easy-Rest, Inc., Brandon Sparks makes sure customers get a good night’s sleep with one of his luxury memory foam mattresses. As a vice president of business banking at National Bank of Arizona, Paul Michael ensures that Sparks has all the financial tools he needs to, well, rest easy. “Every business owner’s needs are unique,” Michael says. “I get to know my clients and provide them with a customized set of financial tools to help them save time, save money and move their business to the next level.” Phoenix-based Easy-Rest and NB|AZ became banking associates in 2013. At the time, Sparks was building his business as a luxury mattress wholesaler and was faced with a big challenge: securing a line of credit that would allow him to cover the cost of large mattress orders. Michael facilitated the line of credit and now Sparks is able to place— and pay for—large pre-orders, both domestic and international.
“NB|AZ believes in our business,” Sparks says. “Having them understand fluctuations in our purchasing has been really helpful. Without that line of credit, it would be very difficult to do business in the most efficient and profitable way. It’s important to have that lifeline when you need it.” Sparks also praises NB|AZ for its customer service, whether working with Michael on financial goals or resolving day-to-day issues through his neighborhood branch. Easy-Rest has experienced phenomenal growth since Sparks and his wife Amanda opened its doors in 2008. The company supports retailers throughout Arizona and the country, as well as domestic manufacturing. This year, Easy-Rest expects to see $20 million in sales. Michael and NB|AZ will be there every step of the way. “We provide him with all the products and services to make his business operate smoothly,” Michael says. “Whatever he needs, we get it done quickly, efficiently and seamlessly.”
in this issue FEATURES
8
It Takes a City
What’s behind Arizona becoming such a trueblue friend to new and relocating businesses?
12
Aim High
Resting its laurels on more than just its past, Prescott is taking an ambitious turn toward the future
DEPARTMENTS
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4
@NB | AZ
W hat’s happening here and now at National Bank of Arizona
Food & Drink
Native Spirits
The Arizona Distilling Company is shaking and stirring things up
5 All Souls
THE COPPER ELK stands watch over the Prescott Lodge #330. Charlie Clark, son of then Arizona Sen. Tom Clark, gave the statue to the lodge in 1905. Read more about Prescott on page 12.
Arts & Culture
Tucson fest celebrates those we’ve lost
6 T eam Player
trailblazers
Larry Fitzgerald gives back for the common good
7 Tourism at Work AZ Works
Visitors may leave, but jobs are here to stay
16
Experience AZ
Dark Sky Communities
PUBLISHER National Bank of Arizona CREATIVE DIRECTOR, NB | AZ Nick Bradshaw, nick.bradshaw@nbarizona.com PROJECT EDITOR Amy Schnell, amy.schnell@nbarizona.com INTERACTIVE MARKETING MANAGER Molly Scott, molly.scott@nbarizona.com
EDITORIAL DIRECTOR Michelle Jacoby, michelle@pb-jcreative.com CREATIVE DIRECTOR, PB+J CREATIVE Pamela Norman, pnormandesigns@me.com CONTRIBUTING WRITERS Sally J. Clasen, Bruce Farr, Susie Steckner 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. © 2015 National Bank of Arizona.® All rights reserved.
NATIONAL BANK OF ARIZONA® Corporate Center 6001 N. 24th St. Phoenix, AZ 85016 602-235-6000
PB+J CREATIVE content + photography + design 602-821-9164 pb-jcreative.com
ON THE COVER Inspired by the Day of the Dead, Tucson’s annual All Souls Procession is an artistic celebration of loved ones who have passed. To find out more about the event, go to page 5. Photo courtesy of Many Mouths One Stomach / Addie Mannan Photography
MARK YOUNG WAS moving comfortably along as a marketing major in college when the world of finance piqued his interest. Interest rates were skyrocketing and he wanted to understand why. But he had some homework to do. “I really didn’t know the difference between a CD and a DVD,” Young recalls with a laugh. His studies changed course and he would go on to spend more than three decades in the finance and banking world. In June, Young took on his newest challenge as president and chief executive officer of National Bank of Arizona. In addition, Young is executive vice president of Zions Bancorporation and serves on the Bancorporation’s executive management committee. Young brings a breadth of professional experience to his newest position. A part of the Zions Bancorporation team for 17 years, he served most recently as the executive vice president of real estate banking at NB|AZ. Prior to joining NB|AZ, Young was an executive vice president and executive director of real estate banking at California Bank & Trust and Bank One. Young has focused his career in Arizona, largely in Phoenix, dating to his first banking job in 1982 at Valley National Bank. Beyond banking, Young has served various community and education organizations, including the Urban Land Institute, Crisis Nursery and Gilbert Christian Schools. Married almost 30 years and the father of three grown children, Young is also an avid outdoorsman and traveler. As president and CEO of NB|AZ, Young leads a premier community bank with 69 branches around the state and nearly 800 employees. A key initiative under his leadership will be implementing enhanced digital platforms for customers. Young is also committed to reinforcing the wide-ranging community engagement efforts of NB|AZ, including the newly formed NB|AZ Charities™ grant program and charitable events like the Taste of the Biltmore. Young says NB|AZ employees will continue to play a critical role in strengthening the bank’s service to the community. “Our employees are very talented, very committed and want to ensure that customers really get the experience and the service that they have come to admire and expect from National Bank of Arizona,” he says. Susie Steckner
MEET THE CEO
Mark Young
EVENTS
Winter Swing
BY THE NU MBERS
S tat e w ide Vo lu n t e e r Day TO CELEBRA TE the laun ch of N ban
k employee BAZ Chari ties, s and their on Statewid families ca me togethe e Voluntee r r Day on A in hands-o pril 18 to p n voluntee a rt ic ip ate r efforts ac ross Arizon Here’s how a . they did:
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employees & family members participated FOR ARIZONA CEOS and executives wanting to support their favorite charities—and enjoy a fun-filled day hitting the links at the same time— NB|AZ’s annual Winter Swing is just the ticket. Since its inception in 2009, the golf event has raised $358,430 for Arizona charities, including Phoenix Suns Charities, Children’s Museum of Phoenix, St. Mary’s Food Bank, Habitat for Humanity, and many more. Designed to raise money, and promote and create awareness for a number of charities, this exclusive event features fun, food and golf. In its second year, the annual Helicopter Ball Drop returns, giving participants a chance to win $5,000 for their cause.
of runners provided with water
events statewide
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1
FO OD BANKS RE CE IVED DONATIONS
community gardens improved
1
100S
Habitat for Humanity house improved
100
nature preserve cleaned
year-old cemetery painted & cleaned
Winter Swing, Monday, Dec. 7. Desert Highlands, 10040 E. Happy Valley Road, Scottsdale. For more information and to participate in this year’s event, visit winterswing.com
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state park trail cleaned
Grant Writing 101
to provide support and resources to nonprofit agencies that are dedicated to improving lives in Arizona,” Bateman says. NB|AZ Charities will offer two grant cycles. The initial grants will be awarded mid-year and the second cycle will begin in August 2016. Visit nbazcharities.org for details. *Founded in April 2015, NB|AZ Charities™ is a collaborative fund managed by Arizona Community Foundation.
Elevate AZ, an NB|AZ Publication
Taste of the Biltmore ON OCT. 1, NB|AZ celebrated the 9th Annual Taste of the Biltmore, a signature food-and-wine event featuring the Valley’s top restaurants and chefs benefiting the community. This year, guests were invited to eat and drink for a good cause in support of NB|AZ Charities and Phoenix Fire Fighters Charities. This year’s sponsors include National Bank of Arizona, Encore Creative, Young’s Market Company and Prisma Graphics. Participating restaurants included: Bruce Brown Catering Seasons 52 Zinburger Blanco Tacos True Food The Montauk Bluewater Grill To
Coup des Tartes The Gladly The Capital Grille Cookies From Home Del Frisco’s Sol Mexican Cocina The Adobe
21 Cakes Benedict’s Catering Nothing Bundt Cakes Frost Gelato Focoso Pizza Whole Foods
see photos from this year’s event, visit facebook.com/ NBAZTASTE or tasteofthebiltmore.com.
Elevate AZ | October 2015
On Sept 29, NB|AZ Charities* held its inaugural grant workshop, hosted by National Bank of Arizona. Mark Young, National Bank of Arizona president and CEO, kicked off the session, followed by Deborah Bateman, vice chairman of National Bank of Arizona, who shared the vision and objectives of NB|AZ Charities, including grant eligibility requirements. “NB|AZ Charities seeks
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W
HEN A TRIO of old high school buddies hatches a plan that involves alcohol, the results usually end up “sketchy” at best. But in certain rare instances, a great idea—even one that’s based on youth and booze—gets born and proves to be an exception to the rule. Such is the case with Rodney Hu, Jason Grossmiller and Jon Eagan, and their highly successful business, the Arizona Distilling Company. Add a fourth friend and partner Matt Cummins to the mix and you end up with a 3-year-old, Tempe-based distillery that’s riding the crest of a major business wave, one that’s showing no signs of crashing anytime soon. About seven years ago, Hu—who was then owner of the locally legendary Yucca Tap Room—and Grossmiller latched onto an idea to open a micro-distilling business. Following several months of research, seminars and painstaking due diligence, they invited Cummins into the fold and, later still, Eagan joined them. Fortunately for the four young entrepreneurs, the time couldn’t have been better to start a craft distilling business. Over the past decade, with the stunning success of microbreweries and craft beers in the U.S., the next logical market to penetrate was small-batch craft spirits. Success in the market wasn’t guaranteed and involved a lot of elbow grease and planning. But today, the four owners are enjoying making whiskey while the sun shines. The group set up shop in an old welding facility in Tempe and quickly got to work, with Grossmiller and Cummins leading the effort to source local Arizona grains; and distill, bottle and label six initial spirits. “Our first release was our Copper City Bourbon,” Grossmiller says, adding that it is the first legal bourbon produced in Arizona. “We also produce Copper City Moonshine, which is simi-
Tempe-based Arizona Distilling Company sources local Arizona grains; and distills, bottles and labels six initial distilled spirits.
The Arizona Distilling Company is shaking and stirring things up
lar, except that it’s unaged, as well as gin and three whiskeys—malt, rye and Desert Durum Wheat Whiskey.” What makes their products different from other commercial products on the shelf? “This is a small operation—it’s just the four of us,” Hu says. “We closely watch the entire process. We’re not just robots filling bottles. It’s our attention to detail and craftsmanship that make all the difference.” And the quality shows. Their gin recently won a double gold medal at the San Francisco Spirits Competition. “Being such a small company, it was great for us and our distribution,” Grossmiller says of the prize. “Winning an award like that proved to us that it’s time to introduce people in other states to our quality products.” Bruce Farr
AWARD WINNING
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&DRINK
FOOD
In March, Arizona Distilling Company entered—and won— medals in the prestigious San Francisco World Spirits Competition. They include:
DOUBLE GOLD
Desert Dry Gin, which uses Arizona botanicals from Cottonwood.
GOLD
Humphrey’s Whiskey, in collaboration with Four Peaks Brewing Company.
SILVER
Desert Durum Wheat Whiskey, made with durum wheat grown in Arizona.
BRONZE
Park Rye Whiskey, the first rye whiskey to be legally distilled in Arizona. For more on the company's products and awards, visit azdistillingco.com.
allsouls
Elevate AZ, an NB|AZ Publication
Elevate AZ | October 2015
Many Mouths One Stomach / Dominic Arizona Bonuccelli
Tucson fest celebrates those we've lost
&CULTURE
ARTS
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SON WHO died in infancy. A best friend killed in an accident. A mother taken by cancer. Loved ones lost too soon. For the past 25 years, the All Souls Procession—a 2-mile, humanpowered procession through downtown Tucson—has given family and friends the opportunity to publicly grieve, honor and pay tribute to loved ones who have died. Tens of thousands gather for the event. They carry signs with messages of love. They share cherished photographs and mementos. They create works of art, and offer hopes and wishes. They mourn, but also celebrate. “This year, we expect close to 150,000 people to attend. The growth in the last 25 years has been astounding,” says Paul Weir, a board member and technical director of Many Mouths One Stomach (MMOS), the nonprofit that organizes the annual event. “It’s the largest, most inclusive Day of the Dead-inspired event in the country right now.” The All Souls Procession had modest beginnings in 1990, when local artist Susan Johnson, grieving the death of her father, created a ritualistic performance piece inspired by Mexico’s Dia de Los Muertos holiday. That early procession drew about 30 people. Over the years, the event continued to grow and by 2003, it hit 10,000 participants. That’s when artists and others in the community formed MMOS to support the event and promote the public mourning and celebration of loved ones lost. Attendees now come from across the state and country, and sometimes the globe. The All Souls Procession, a free event, costs organizers roughly $150,000 to put on and is funded through individual and business donations, grants and city funds. The return on that investment is huge: a $24.5 million impact in the community, according to a 2013 study by MMOS. All Souls Procession Weekend, held Nov. 7-8, will include several unique, all-ages activities. The Procession of Little Angels will kick off the festivities on Nov. 7, when young children honor loved ones with their own procession. The following day, enormous crowds will turn out for the All Souls Procession, finale ceremony, and Dance of the Dead. This year’s event features a live performance by musical guest Filastine and light sculptures by artist David Therrien. Organizers are also collaborating with Tucson’s January 8th Memorial Foundation to pay tribute to the victims killed at Congresswoman Gabrielle Giffords’ “Congress on your Corner” event in 2011. A detailed calendar of events can be found at allsoulsprocession.org. But the return for individuals mourning and celebrating cannot be calculated. “People in the West are waking up to how important it is to remember your ancestors, to remember your history, to honor your memories,” Weir says. Susie Steckner
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ERS
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RIZONA CARDINAL Larry Fitzgerald weaves around opponents like the Artful Dodger in Charles Dickens' "Oliver Twist." As one of the greatest wide receivers in the NFL, he uses his speed, training and athleticism to deliver the ball to the end zone. But off the field, No. 11 doesn’t cut corners when he’s giving back to our community. Fitzgerald lends his name, time and resources to numerous charities and fundraising efforts, such as the Larry Fitzgerald First Down Fund that supports summer youth programs, as well as families and children in need. He’s also involved with the eponymous Larry Fitzgerald Youth Football ProCamp that helps kids develop their football skills. In addition, the All-American and Pro-Bowler has been a volunteer and mentor for the Big Brothers Big Sisters of Central Arizona (BBBSAZ) for the last 10 years, a commitment that earned him the 2014 Common Good Award at the organization’s 60th anniversary gala held in April. His notoriety as a professional athlete makes Fitzgerald a household name, but his philanthropic qualities are just a natural extension of how he was raised and not an expected product of his day job. “It has nothing to do with football,” says Fitzgerald. “Growing up in Minnesota, it was ingrained in me to affect people in a positive way. When I was a kid, my mother, in particular, influenced me. She was a major advocate for others, so I constantly saw that dedication demonstrated, from supporting those with AIDS to many other community causes.” The aptly named “common good” recognition suits Fitzgerald’s philosophy about the importance of doing right by others, regardless of who you are or what you do for a living. And he challenges everyone to get involved. “We are all able to do the right thing. It doesn’t matter your occupation, color or gender. I don’t do anything differently because of what I happen to do for a living. Kindness goes a long way. If we all did
something to make a difference, whatever it is, we could collectively make our community stronger.” A longtime supporter of youth programs, Fitzgerald’s role as a Big Brother for BBBSAZ and helping raise awareness about the organization’s goals has been a meaningful journey with many defining moments. “It’s not a forced relationship,” he says of the mentoring experience. “Seeing the interaction between all of the Big Brothers and Big Sisters (“Bigs”) and the Little Brothers and Little Sisters (“Littles”) has been particularly beautiful.” Yet, his hope is that one day soon he can walk into the BBBSAZ office and find he and his fellow mentors out of a job. “It will make me the most happy when there are a lot of Bigs waiting and not enough Littles to fill those roles.” Sally J. Clasen
r e m y a te pla back s e v i g d l era L a r ry F i t z g m m o n g o o d fo r t h e c o
ONE YEAR
According to Big Brothers Big Sisters of Central Arizona, kids who participate in BBBSAZ programs in just one year are:
46% 27% 52% 33% less likely than their peers to use illegal drugs
less likely to start drinking alcohol
less likely to skip a day of school
For more on BBBSAZ and how they're helping Arizona youth, visit bbbsaz.org.
less likely to hit someone
WORKS
tourism at work AST COAST visitors fill the stands at spring
Pool Photo: Mary Nichols / Four Seasons
training baseball games around the Valley. Tourists from across the globe take a trip back in time at the Grand Canyon’s historic Kolb Studio. Wine lovers travel to southern Arizona for a weekend of tastings and tours. Arizona’s tourism industry is experiencing record-breaking numbers of visitors and travel spending, helping drive the economy across the state. In a single day, travel spending pumps a whopping $57 million into the economy. This boon boosts employment. Just over 171,000 industry-related jobs were directly generated through travel spending from 2014, nearly 4 percent more than the previous year. Those jobs combined with indirect employment such as landscapers hired by resorts accounted for about 319,000 jobs in 2014. These tourism-related jobs, in turn, generate $5.9 billion in earnings—earnings that flow through the economy in ways big and small. “This industry is responsible for creating a positive cycle of economic growth and job creation, which is why it’s vital to continuously promote Arizona as a vibrant travel destination,” says Debbie Johnson, director of the Arizona Office of Tourism (AOT). “We’re proud that tourism generates jobs, earnings and taxes thus making us one of Arizona’s strongest economic drivers.” Last year, nearly 41 million domestic and international travelers logged overnight visits here and accounted for $21 billion in travel-related spending. They explored everything from the Sonoran Desert to resort spas. Consider the 111-year-old Kolb Studio, built perilously on the side of the Grand Canyon and operated by two photographer brothers, Emery and Ellsworth
Elevate AZ, an NB|AZ Publication
Kolb. A recent $450,000 restoration by the nonprofit Grand Canyon Association (GCA) reinvigorated the historic site, a magnet for Canyon visitors from around the world. “Arizona is an amazing destination. It offers something for everyone year round,” says the GCA’s Miriam Robbins. “There are about 5 million visitors to the Grand Canyon each year. That’s a staggering number, especially since the state population is 7 million. The impact of the Grand Canyon on the entire tourism industry can’t be overlooked.” The rebounding economy is helping drive the record-breaking tourism numbers. But there are other factors at play, too. AOT officials continue to reach for international travelers in Mexico and Canada, and target visitors in key cities like Chicago and Seattle. Marketing campaigns include everything from traditional Internet advertising to a touring Grand Canyonthemed RV. Arizona’s role as as event host to top sporting events like the Super Bowl raises the state’s profile before, during and after events. Intensive efforts by tourism officials to engage the media also help promote destinations, events and experiences only available in Arizona. “Arizona is an exciting and diverse destination with travel experiences you can’t find anywhere else,” says Johnson. “Working with the travel media helps us bring Arizona’s unique travel stories to a global audience so they select our state as a vacation destination and our economy can continue to benefit from visitor spending.” Susie Steckner
$57 MILLION
Single day’s travel spending pumped into Arizona’s economy
41
MILLION Domestic and international travelers logged overnight visits to AZ in 2014
$21 BILLION in travel-related spending in 2014
5
MILLION
People visit the Grand Canyon each year For more on tourism jobs and dollars, visit visitarizona.com
Elevate AZ | October 2015
E
Visitors may leave, but jobs are here to stay
In Arizona, tourism industryrelated jobs accounted for about 319,000 jobs in 2014 and, in turn, generated $5.9 billion in earnings.
7
it takes acity STORY Bruce Farr
PHOTOGRAPHY Mark Lipczynski
What’s behind Arizona becoming such a true-blue friend to new and relocating businesses?
A few years ago, when Heidi and Brad Jannenga hit upon a novel idea for a new technology business, they had not yet fully comprehended how serendipitous it was they were planning to base their company in downtown Phoenix. For one thing, the Jannengas happened to live in Phoenix, so their choice of location was set in stone. But more importantly, what the couple couldn’t have foreseen, was how prominently the city was positioning itself to become a leading national advocate for entrepreneurs and an eager partner in their plans. Last year, the National Federation of Independent Business (NFIB) named Phoenix one of the top five U.S. cities opening its doors to entrepreneurs and helping them succeed in growing their businesses.
Brad and Heidi Janenga—owners of WebPT, an electronic medical record company—inside their downtown Phoenix office building located in the city’s warehouse district.
Elevate AZ, an NB|AZ Publication
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The Jannengas’ company the many hundreds of businesses Arizona’s help, that are settin for entrepreneurial growth an Listing numerous reasons why Arizona’s largest metropolitan area is so attractive to both in- and out-of-state entrepreneurs, NFIB state director Farrell Quinlan noted that after the homebuilding bubble burst in 2008, Phoenix made tremendous, corrective strides to diversify its economy to include more manufacturing and healthcare-related businesses. “We will never again be so exposed to a sector downturn,” he says. The Jannengas’ company is one of many, with Arizona’s help, that are raising the bar for entrepreneurial growth and success. Medical techies
According to Heidi, WebPT is an electronic medical record company that provides digital space for physical therapists, occupational therapists and speech and language pathologists. In 2006, Heidi and her husband and co-owner Brad wisely anticipated the growing needs of physical therapists seeking to transition their medical records to an electronic format. Paper dictation and written documentation, they knew, were some of therapy clinics’ biggest costs. But, as they soon discovered, there was nothing available in the marketplace to address the problem. With Brad’s technology savvy (he was a professional software developer) they created a Web-based software to hook up a wide range of clinicians with, as the WebPT website describes, “…intelligent business reporting, interactive and organized scheduling and one-stop shopping.” Although, like many successful startups, the company began in a garage, WebPT has grown exponentially. The company is now located in Phoenix’s downtown warehouse district, a thriving new hub for innovative businesses, and employs roughly 250 people. Small businesses in Arizona: The flourishing company has become a model — Employed over two-fifths or 955,194 of of sorts for businesses that actively tap state the state’s private workforce in 2012. and municipal resources, resources that were — Make up up 97.1 percent of all employers created to establish and nurture new commerce in the state. in Arizona. — Created 39,248 net new jobs in 2012. The biggest gain was in the smallest The Arizona ‘ecosystem’ firm size category of 1 to 4 employees. “We are a technology business that’s evolved
Just the Facts
Source: U.S. Small Business Administration, Office of Advocacy
tremendously over the past seven years,” Heidi notes with understandable pride. But she’s quick to point out that her company’s evolution has resulted from assistance along the way. “Arizona has lots of mentor networks that serve as connectors,” she says. “Over the past several years and now with the technology wave underway, a lot of coworking spaces and [business] incubators have popped up. We feel fortunate that when we were starting our business, we were part of the groundswell that was proliferating in Arizona, specifically the greater Phoenix metro area.” Some of the services that are now readily available to Phoenix—and, by extension, Arizona— businesses were in their infancy when the Jannengas began planning to launch WebPT. “When we started out, I actually read something in the paper about how ASU had an entrepreneurial group that was offering something to local companies called Launch Prep,” Heidi recalls.
“It was a group of ASU professors trying to gather local startups to come in and learn how to build a business plan, how to develop an elevator pitch and how to build out key financial metrics, among other things.” The Jannengas happily accepted assistance, which they now say was an important stepping stone to meeting more people and organizations involved in the technology ecosystem. And as WebPT has grown, its leadership has taken advantage of other helping hands, including the Greater Phoenix Economic Council (GPEC) and the Arizona Commerce Authority (ACA). “The ACA has some training grants that we’ve applied for. They have helped tremendously with growing our team,” Heidi says. President and CEO of the ACA Sandra Watson points out that the organization is chartered to help both new and existing businesses in many ways, including training employees. “The Job Training Grant is a job-specific, reimbursable grant that covers 75 percent of eligible training costs,” Watson explains. “It supports the design of customized training plans for employers creating new jobs, or increasing the skill and wage levels of current employees.” Strength in numbers
Along with the ACA, Chris Camacho, president and CEO of Greater Phoenix Economic Council (GPEC), has been instrumental in helping businesses like WebPT take root and grow. Since GPEC was formed in 1989, when it represented the advanced business development interests of eight metroPhoenix-area communities, the council has broadened its reach by adding 14 additional communities to its charter. “It’s been our mission to support industries that are considering investing in the Phoenix market—industries ranging from advanced business services to technology to manufacturing to data centers,” Camacho explains. “Our goal is to promote inward capital and the placement of high-wage jobs in this region.” GPEC’s plan for accomplishing their mission is threefold, Camacho says. “First, in a big, sprawling city like Phoenix, one of our primary goals is to identify innovators who aren’t operating in densely populated locations and connect them to our region,” he explains. “Next is to connect earlier-stage companies to key resources— especially growth capital and debt resources—and our banks. Third, we want to help align startups and even mid-scale companies [with a research profile] and larger corporations around the technology disposition. This helps smaller companies tap into resources that usually only larger corporations can provide.” Small business aid
Most of the statewide organizations tasked with helping improve Arizona’s overall attractiveness to new businesses aren’t big, splashy enterprises. They are rather entities working quietly and steadily behind the scenes to improve the business climate and infrastructure for small-business entrepreneurs. One of them, the Arizona Small Business Association (ASBA), has been doing precisely that for the past 40 years.
is one of s, with ng a higher bar nd success.
Parking allotments
As Heidi explains, sometimes the most important reasons for picking a business location boil down to needs. Take parking, for instance. “The City of Phoenix has embraced this groundswell of technology and, more specifically, us. In the warehouse district, they’ve made street improvements and added parking spots, seemingly little things that have helped us tremendously with building a thriving business here in the city,” she says. “The willingness of the city to help build infrastructure that allows more and more companies to want to come downtown is, I think, extremely important.”
According to GPEC CEO Chris Camacho, these are the top three reasons companies find Arizona an attractive place to startup or relocate:
1
Worker talent
“The existing talent pool in the Phoenix metro area is key. A lot of companies, particularly those in California, come to Phoenix for the qualified labor pool that’s produced through the Maricopa community college system as well as Arizona State University and University of Arizona.”
2
Creative space
“Real estate is another reason behind companies setting up shop in Phoenix. We’ve actually built a repository of real estate websites that are conducive to these kinds of technology users’ needs. They look for places that are open, clean, minimal and turnkey.”
3
Cost advantages
“A lot of companies come here for the optimized cost positions this area offers them.”
Elevate AZ | October 2015
“We’re the statewide resource for small businesses,” says ASBA CEO Rick Murray, who explains that his organization primarily exists to provide opportunities to its 10,000-plus member businesses, helping them to learn more about marketing, finance, technology and a number of other critical areas. “We don’t do everything,” Murray adds, “but we’re that hub for all the services that are out there to aid small businesses.” In Murray’s opinion, Arizona is a solid bet for locating—or relocating—a business. On the whole, he believes the state is making steady progress away from the devastating hit it took during the last major recession. “It’s on the uptick,” Murray says about the state’s business rebound. “Arizona was particularly hard hit, and it’s taken the state a long time to recoup losses. Arizona fell a lot further than almost every other state, which means we have a lot more digging out to do.” “It’s been a slow, steady climb,” he continues, “but just because it’s been slow doesn’t mean that it’s been a bad thing. It’s sustainable growth that’s creating a very stable foundation so, if and when the next downturn comes, we won’t be falling nearly as hard as we did a few years ago.” Murray says he sees Arizona’s business advantages on many different planes. “The fact that we’re a fair-weather state is an important consideration; you can do business all year round here and Arizona is a great place to live” he says. “But we’ve also done some remarkable things over the past six to eight years with regard to regulation and taxation for small businesses. We continue to try to lessen some of the burdens of these areas, so that business people can focus on making payroll and not worry so much about taxes and other issues that might discourage them from operating their businesses here.” On the regulatory front, Murray cites one specific piece of state legislation that he was instrumental in helping to get passed. “Equity crowd funding went into effect this past July,” he says. “It allows businesses to raise up to $2.5 million by crowd funding and giving away an equity position within their company.”
why arizona?
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i ts g n i t R es n o s l e laur han t more s past, it t s u j t is t o c P r es an g n i rn u tak t s ou i t i b am he t d r towa e futur
m i a h g i h
prescott. to most Arizonans and visitors, the small, picturesque city a mere 90 minutes north of Phoenix serves as a living symbol of the state’s fabled, pioneering past. From its earliest origins in the mid-19th century, when it was named the Arizona Territory’s first official capital, through the gold and silver mining boom, all the way to the city’s abiding tradition of hosting the world’s oldest rodeo, Prescott’s been polishing up its colorful cachet of history. STORY Bruce Farr PHOTOGRAPHY Mark Lipczynski
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One thing is certain: Prescott will never cut its deep historical roots or its true West brand. But now, seven years after suffering the devastating blow that was the Great Recession of 2008-2009, Prescott is hitching its economic wagon to an ambitious new plan, one that’s designed to carry the city and its surrounding areas toward a brighter and more progressive future. Beyond tourism
To make it happen, Jeff Burt, who heads up the relatively new Department of Economic Initiatives in Prescott, says his office has a swamped agenda. Burt explains that when the city was climbing out of what he refers to as the “lean years” following the economic downturn, Prescott city planners focused much of their attention on developing retail and tourism, through which they hoped to spark investment and growth. It wasn’t a bad formula, but the city is now looking to do more. Leaders are hankering to get back into the mainstream of economic development and broaden Prescott’s activities beyond just retail and tourism. One of their objectives is to shield the city’s economy from future threats. In essence, they’re trying to establish better balance through a fullscale, economic development effort. That effort began two years ago, when Burt’s department was tasked with creating jobs, raising household incomes and seeking more capital investments. “Tourism has always been and always will be an important strength of Prescott’s,” Burt explains. “But we’re looking at some other components to tack onto retail and tourism, that will help the city become more diverse and less dependent on any one sector.” Airport a strategic key
But how does all of this translate into work? Burt says that to help flesh out a workable plan, the city has undertaken a careful study of Prescott’s assets, particularly the ones that can be improved and used as springboards for future economic growth.
One key asset is the city’s airport located roughly seven miles north of downtown. The Prescott Municipal Airport at Ernest Love Field is a relatively small, general-aviation facility, served largely by Great Lakes Airlines. Last year— working from the recommendations found in a 2006 economic impact study of the airport by the Prescott Chamber of Commerce—Burt and other city officials came up with an ambitious strategy and vision for the airport and its surrounding land area, which comprises roughly 8,000 acres. The plan calls for significant investment in the airport, its infrastructure, facilities and operations, Burt explains. “We see [the airport] as an ‘engine’ because of where it’s located, right in the middle of the region. It provides great access to the metro area and connects people to where they want to live, work and play.” Some of the investment will go toward improving airport access roads, lengthening the runway and building a new terminal. “It’s probably a 20-year plan,” Burt says, “but it will help the airport remain viable and enable Prescott to catalyze economic growth in the future. “It’s a canvas,” Burt continues, referring to the 8,000 acres around the airport that are currently being used for agriculture and grazing. But the key to anything we do, we have to remember, is water. We have to be very careful about how we allocate water resources.” High livability
Aside from its agreeable weather, Prescott is blessed with an abundance of natural and cultural resources that keep it on the A-lists of many publications and business consortiums for livable American cities. One of them, Nerdwallet — a popular online financial and lifestyle website — ranked Prescott one of the top 10 Arizona towns for young families to live. With a handful of colleges and universities,
several top-notch healthcare facilities, some great museums and an increasing number of sophisticated restaurants and shopping options, Prescott has style that is somewhat rare for a city its size. “I think the people who guide this city’s development understand the raw material that they have to work with,” Burt says. “All communities look to identify strengths…and it’s generally recognized that we have a lot of natural assets. But, the question remains, how do we build upon them without denigrating them?” Another component of the city’s economic development plan is bolstering the strong numbers Prescott’s been generating in the employment sector. Jobs in healthcare, education and manufacturing are on the rise, Burt reports. As of May 2015, the unemployment rate was around 5.6 percent, the lowest it’s been since 2009. And the number of employed workers in the city is the highest it’s been in five years. History lessons
As Burt and other city leaders continue to implement their strategy for a more prosperous future, the benefits of living in the greater Prescott Valley should continue to increase. As Burt well knows, it’s not a smooth trail to the city’s future. “We’ve certainly got plenty of work to do, but I think we’re convinced that we’re on the right track,” he affirms. One thing is certain: Prescott will never cut its deep historical roots or its true West brand. Supporting those facts is an increase in national and international tourists who say they visit the city expressly to stroll down Whiskey Row, mingle with a few bona-fide cowboys and take in Prescott’s remarkable surroundings. “There still seems to be a strong interest in the old west,” Burt says, with satisfaction. “Those things are all still very much present and alive here, and they’re not going away.”
Elevate AZ | October 2015
While Prescott’s history continues to be a draw for visitors, the airport will fuel the city’s future growth, says Jeff Burt, director of the Department of Economic Initiatives at City of Prescott.
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Dark Sky Communities
Arizona is home to three Dark Sky communities, as named by the International DarkSky Association. The group is dedicated to protecting the night skies from light pollution, which can affect health, wildlife and climate change. Flagstaff, Sedona and the Kaibab Paiute Reservation join a short list of 11 communities worldwide. Photo by Mark Lipczynski
Elevate AZ, an NB|AZ Publication
Elevate AZ | October 2015
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BUSINESS TODAY
Revving up for growth Buddy Stubbs (center) and his sons Frank and Jack run Buddy Stubbs Harley-Davidson, the largest motorcycle museum and dealership in the Southwest.
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FORMER motorcycle racer and movie stuntman, but forever a motorcycle enthusiast, Buddy Stubbs is only a year away from celebrating 50 years as a Harley-Davidson dealer in Phoenix. Buddy Stubbs Harley-Davidson opened in 1966 in what was then the heart of Phoenix. In 1985, the Harley-Davidson corporate office asked Stubbs to take over a struggling dealership on Cave Creek Road in north Phoenix. “I was able to turn that place around,” Stubbs said. Shortly after acquiring the Cave Creek Road facility, it became the company’s flagship location and the original location closed. In 2005, he opened the largest motorcycle museum in the Southwest at the expanded flagship location, with 128 motorcycles showcasing 35 different manufacturers in 11 countries. He has another dealership location in Anthem in far north Phoenix and a boutique facility in the town of Cave Creek.
Stubbs’ two sons, Frank and Jack, are the managers of the business. “Family-owned and -operated HarleyDavidson dealerships are becoming rare,” Stubbs said. “This gives us an advantage by allowing us to connect more closely with our customers.” Generational management of the dealership is important to Phillip McKee, too, the dealership’s marketing director who joined the team in 2011. “The fact that it’s a family-run business is a big draw for me,” said McKee, who’s also a motorcycle rider. Since 2010, Stubbs has banked with National Bank of Arizona. NB|AZ and commercial banker Rob Maver were able to refinance a loan from another bank that predated Stubbs’ relationship with NB|AZ and carried a significant prepayment penalty. “We were able to tailor a much less expensive loan product that’s better suited to his needs,” Maver said. As a result, Stubbs and his business are saving hundreds of thousands of dollars in interest over the life of the loan. “In addition to giving us better terms, NB|AZ is much friendlier than other banks,” Stubbs said. “They’re also more professional and have an exceptionally well-qualified staff.” Debra Gelbart Buddy Stubbs Harley-Davidson 13850 N. Cave Creek Road, Phoenix 602-971-3400 buddystubbshd.com
NB|AZ helps put legendary motorcycle dealership on the road to even greater success
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The Stubbs team with NB|AZ commercial banker Rob Maver (second from left).
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