Inside Tucson Business 01/06/12 by Territorial Newspapers

R&A CPAs MARK 70th YEAR IN BIZ Firm builds client relationships by ‘taking’ their hats PAGE 9

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Cambiano basura por tesoro Mexican entreprenuers turn discarded stuff into cash across border Page 4

Defenders of land and sea Raytheon lands $45M anti-missile defense contract Page 6

Schumacher photo by J.D. Fitzgerald / Composite by Andrew Arthur

Actor and filmmaker Eric Schumacher is one of the driving forces behind Picture Arizona, a locally based independent film company.

Local independent ﬁlm industry coming into focus

Finally, foreclosure filings are falling

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2011 finishes with 19 percent fewer Page 23

Marana in sewer business, but could face issues with regulators By Patrick McNamara Inside Tucson Business As of 12:01 a.m., Tuesday (Jan. 3) the Town of Marana officially got into the wastewater treatment business. Exerting its right under a recently passed state law, town officials took over the operation of a small wastewater treatment plant, which stands among the cotton fields in the northern reaches of Marana. “We want to be able to fully utilize our water resources,” Marana Town Manager Gilbert Davidson said. “This enables us to fulfill our general plan and strategic plan goals.” While Marana officials have said euphemistically that they need the facility

to control their own destiny, it’s water that the town really wants. State and federal laws link urban growth with renewable water sources. For Marana, which has a minimal allotment of CAP water, that means access to effluent, the water discharged from treatment facilities. “If their desire is water resources, we would provide it,” Pima County Administrator Chuck Huckelberry said. Pima County is the last remaining Arizona county to operate a wastewater treatment system. It has offered Marana treated water, but town officials say the deduction for conservation the county requires would sap most of the water. Marana officials, including Davidson, have accused the county of using

its control of the wastewater system to stifle growth. “That’s a figment of someone’s imagination,” Huckelberry said. He notes the county system has more than 270,000 hookups. The county claims that Marana’s operation of the plant would run afoul of state and federal regulations because the town lacks proper permitting under the Clean Water Act. Davidson said the town has been working with the state to acquire the proper permits and said the ultimate authority on the matter rests with the governor. Marana contracted with the company WestLand Resources to operate the facility. It will pay $15,000 for the first month and $9,500 for subsequent

months. The contract also provides for a 10 percent subcontractor fee. The town and Pima County have battled in the courts for the facility since 2007, when Marana sought to annex the property, break an agreement between it and the county and take control of the treatment facility. Pima County has challenged the constitutionality of the state law that allowed Marana to take over the facility. The county also plans a potential federal suit against the town on the grounds that it’s operating the treatment plant without permits.

Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

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NEWS

Move to rebuild local film industry picks up momentum, investors tablish Southern Arizona’s reputation as the premier location for filmmaking that it once was. To make that happen and attract interest, Kreinbrink said the local film industry has to get some successes under its belt. “They’re (Hollywood) not coming back without an infrastructure,” he said. The film project he’s working to complete has begun to build on that infrastructure and has gained distribution offers and commitments from well-known actors. “I think we are experiencing a new renaissance of independent film,” Schumacher said. “(‘The Forsaken’) is a vehicle to facilitate that.” Jacob said he decided to get involved with Picture Arizona out of a sense of commitment to southern Arizona, an area that has been home to five generations of his family. “I’m motivated from a spiritual and philosophical sense more than a monetary sense,” Jacob said. Like many long-time Tucsonans, he recalls the era when film crews were a common sight in the area. When he was growing up, he said, there were three local events he looked forward to. “The rodeo starting, Spring Training and movies filming in Tucson,” Jacob said. He first learned of Williams’ and Schumacher’s plan to restart the local film industry from a story about Picture Arizona published in Inside Tucson Business in April. The story inspired him to contact Schumacher and eventually get on board. “This is more than just and inspiration, it’s a reality we’re about to embark upon,” Jacob said. Picture Arizona partners continue their quest for believers in local film. They have distributed investment packets to local business leaders and plan to hold an information session in the near future.

By Patrick McNamara Inside Tucson Business Years of preaching the gospel of independent film may have begun to win converts for a pair of local filmmakers. Eric Schumacher and Alan Williams have talked to media, potential investors and just about anyone who would listen about reviving the local film industry through a hyperlocal approach. They call their model Picture Arizona LLC, and it’s envisioned as a BIZ FACTS way to resuscitate the longPicture Arizona LLC ailing local film industry. www.picarizona.com Schumacher thinks the plan would not only provide work for actors and filmmakers, but also have positive economic outcomes for many ancillary businesses. “We’re talking about creating a business model where everyone wins and no one loses,” Schumacher said. The message hit home for local architect Randel Jacob, who has decided to team up with Schumacher and Williams on the Tucson-based film company. “One of the things that turned me on to this was the incredibly similar way making a film is to making a building,” Jacob said. He and his wife Tammi run Randel Jacob Design Group, they were moved by the collaborative nature of film and process of starting from a clean slate to create something new, all things that Jacob said had parallels in design and construction work. “I wanted to be a part of that process,” he said. That process, or at least what the partners in Picture Arizona hope to initiate, is to gather enough funding from investors to finance as many as six independent film projects filmed over the course of 18 months.

Phone: (520) 295-4201 Fax: (520) 295-4071 3280 E. Hemisphere Loop, #180 Tucson, AZ 85706-5027 insidetucsonbusiness.com

Each of the projects will require $100,000 to $3 million in funding, depending on the nature of the film. Schumacher said it would be important to hire “named talent” to work on each film as a way to attract industry interest and audience. The majority of cast and crew for the film projects would be locally based, Schumacher said. Picture Arizona partners have already begun to read script proposals and evaluate potential film projects. So far, two films have been selected. The first, a project of Williams’ about a team of paramedics, is planned as the initial full-fledged venture for the company. Williams wrote and plans to direct the film once the funding picture takes form. The second project on tap is a period drama already in production set in late 1800s Flagstaff called “The Forsaken.” Southern Arizona filmmaker Justin Kreinbrink will direct the film. He’s teamed up with Picture Arizona for portions of the film that will be shot in Southern Arizona. “It’s coming together,” Kreinbrink said about Picture Arizona. He said it would take efforts like his and Contact reporter Patrick McNamara at pmcnathose of Schumacher and Williams to re-es- mara@azbiz.com or (520) 295-4259.

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Inside Tucson Business (ISSN: 1069-5184) is published weekly, 53 times a year, every Monday, for $1 per copy, $50 one year, $85 two years in Pima County; $6 per copy, $52.50 one year, $87.50 two years outside Pima County, by Territorial Newspapers, located at 3280 E. Hemisphere Loop, Suite 180, Tucson, Arizona 85706-5027. (Mailing address: P.O. Box 27087, Tucson, Arizona 85726-7087, telephone: (520) 294-1200.) ©2009 Territorial Newspapers Reproduction or use, without written permission of publisher or editor, for editorial or graphic content prohibited. POSTMASTER: Send address changes to: Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087.

Here’s your schedule, Coach Rodriguez New University of Arizona football head coach Rich Rodriguez will have plenty of opportunities to get used to his new digs at Arizona Stadium next season as host to eight home games, the most the school has had since 1988. The team will travel for four road games, according to the schedule released Wednesday by the Pqc 12. The Wildcats will start the season with three home games and will never have backto-back road games. The schedule: • Sept. 1 - Toledo • Sept. 8 - Oklahoma State (this season’s Fiesta Bowl champions) • Sept. 15 - South Carolina State • Sept. 22 - at Oregon • Sept. 29 - Oregon State • Oct. 6 - at Stanford • Oct. 20 - Washington (family weekend) • Oct. 27 - USC • Nov. 3 - at UCLA • Nov. 10 - Colorado (homecoming) • Nov. 17 - at Utah • Nov 23 (Friday after Thanksgiving) Arizona State As part of the announcement, the Pac 12 said its new rights agreements with ESPN and Fox as well as the launch of the new Pac-12 networks in August means that every game in the conference will be available to a national audience though the exact schedule is yet to be determined.

Atlas moves more out than in to Arizona Atlas Van Lines says it moved 2,206 households out of Arizona in 2011 and 2,056 households into the state. It’s the fourth year that outbound moves from Arizona have exceeded inbound moves a time that coincides with the Great Recession. At its peak of inbound moves in 2004, Atlas moved 3,616 households into the state with 2,771 going out. In 2010, Atlas said it moved 1,942 out of the state and 1,798 in. Ohio had the largest outbound movement in 2011 with 2,876 moving out and 1,890 moving in. Washington, D.C., had the highest percentage of inbound moves last year. The only other states that more households moving in than moving out were North Dakota, New Mexico, Texas, Alaska, Tennessee and North Carolina.

EDITION INDEX Public Notices Lists Profile Inside Media Meals and Entertainment Arts and Culture Calendar

6 7,8 9 11 14 15 18

People in Action Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

16 20 22 23 24 24 27

4 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

NEWS Mall owner General Growth Properties Inc. says it plan complete a spin-off Jan. 12 of a subsidiary to be named Rouse Properties that will own 30 of its weaker malls, including the Mall at Sierra Vista. The goal is to have Rouse Properties, which will operate as a separate publiclytraded company, focus on buying and rehabilitating lower productivity malls in secondary and tertiary markets. In the meantime General Growth, which emerged from bankrutpcy protection in November 2010, will keep 137 of its best performing malls within its portfolio. Those include Tucson Mall and Park Place Mall. According to the company, the Mall at Sierra Vista has a total of 365,853 total square-feet of leasable space, 169,361 of which is within the mall and the remainder is made up of pads surrounding it. It says 94.8 percent of the mall is currently under lease. Anchor tenants include Dillard’s, Sears and Best Buy.

Silicon Valley Bank to set up Arizona shop Silicon Valley Bank, the commercial banking division of SVB Financial Corp. headquartered in Santa Clara, Calif., said Tuesday it will open an information technology and operations facility in Tempe this year. SVB, which has 26 U.S. offices, specializes in providing capital and financing to entrepreneurial companies ranging from startups to multibillion-dollar corporations. It’s also well-known for providing financing to the premium wine industry. Silicon Valley Bank already had three people working in Tempe, but with these plans, that group will grow to at least 220. The bank is the second company to receive tax incentives from the Arizona Commerce Authority through a $25 million “Arizona Competes Fund,” nicknamed the “Deal Closing Fund.” Clear Energy Systems, a Tempe-based manufacturer of portable energy generation systems, received the first package of tax credits, incentives and potential job-training grants in October. To qualify for the incentives, companies must achieve certain performance measures, such as having an average employee wage above the county’s average. In SVB’s case, the bank was also considering Dallas, according to Greg Becker, president and CEO of SVB, who said the incentive package was just a small factor in the bank’s decision to go to Tempe, saying the proximity to its California headquarters and the number of technology and life science businesses also played a role. Among its current clients is Tucson-based SynCardia Systems Inc., maker of the only Food and Drug Administration-approved Total Artificial Heart.

Pickup trucks on I-19 turn Tucson’s trash into treasure in Mexico By Curt Prendergast Inside Tucson Business Like ants on an ice cream cone that has fallen on the sidewalk, a fleet of small trucks move up and down Interstate 19 carrying furniture, appliances, and other household items cast aside by Arizonans. Many of them, often with loads stacked precariously higher than the roof of the truck, are driven by Mexicans and Americans living in Sonora. These entrepreneurs of the informal economy drive to Tucson and Phoenix to buy clothes, beds, washers, dryers, refrigerators, cabinets, chairs and anything else they can find at yard sales, on Craigslist or at Salvation Army and Goodwill auctions. Some of them re-sell these second-hand items at the Tanque Verde Swap Meet in Tucson, but the trucks on I-19 are headed to swap meets in Nogales, Sonora or to points farther south of the border. Before donated merchandise makes it to the trucks, some of it is sold at auctions like the one held every weekday morning at the Salvation Army Thrift Store on South Sixth Avenue. Vendors bid on furniture, appliances and ‘brick-a-brack’ like jigsaw puzzles and socks. “Everything that’s not store-worthy comes out here,” said Joel Elson, auctioneer

Curt Prendergast. photos

Sierra Vista Mall to be split off from GGP

Vendors get ambitious while loading their truck after their auction purchases.

and manager of As Is and Car Sales for the Sixth Avenue Salvation Army. The jovial mood in the auction yard turns serious when the bidding starts, indicating that the auction is more than just a way for people to furnish their new apartment on the cheap. “Most of the vendors that come here, this is their livelihood,” said Elson. Gilberto Mendoza has been coming to the Salvation Army auction for 20 years. He buys used items to re-sell at his store in the

A pickup truck loaded with beds approaches the DeConcini Port of Entry in Nogales, Ariz.

Canoas Swap Meet in Nogales, Sonora. “I’ve spent a lot of money here,” he said as he flipped through the $30 he had, which he didn’t think was nearly enough. “I want to buy everything,” he said with a grin. Jim Toevs, who gained local renown when he ran against Jim Kolbe for U.S. Congress in 1992, now owns a hostal in Alamos, Sonora. He comes to the Salvation Army auction once a month and spends a

TRUCKS PAGE 5

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JANUARY 6, 2012

NEWS

TRUCKS | CONTINUED FROM PAGE 4

This Week’s

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Curt Prendergast. photo

UA ranks 99 in Forbes 100

Gilberto Mendoza gets some help loading his truck before leaving for Mexico.

few days in Tucson buying inventory before he heads back to Alamos, a town of about 10,000 people, including some 400 U.S. expatriates, located south of Hermosillo. “I buy anything I think I can make a buck on,” said Toevs. “If you watch, you can find some incredible deals.” These incredible deals sometimes involve buying merchandise in less-thanperfect condition. It’s always “as is,” Elson said with the smile of an experienced auctioneer. After leaving the auction, broken items will be repaired and unsightly marks polished away in preparation for the weekend swap meets.

Up and down I-19 The auction itself only lasts about 30 minutes, but many buyers stay for another hour or so to load their trucks. This is an art form all its own. Just when it looks like they can’t possibly fit anything else on the truck, a few dozen office chairs are carted over and the loading continues. “You’ve got to want it,” said Mendoza. Some vendors may stay in Tucson to make more purchases, but for those with full truckloads their next move is to drive down I-19 to Nogales. Some will sell their wares at swap meets in Nogales, Sonora while others, like Toevs, will continue south to the small towns of Sonora.

Importing by suitcase I-19 dead-ends in downtown Nogales, Ariz., but the journey continues for these second-hand treasures. The next step for vendors is to move their wares across the border, which can be a tricky operation. When Mendoza gets to Nogales, Ariz. he puts his merchandise in storage for a day or two and then takes it across bit by bit. With a little subterfuge, clothes and small items

can be carried over in suitcases. “They act as if they were on vacation in Arizona. If you have four kids, then each one carries a suitcase,” said Mario Ramirez, a vendor at a furniture store in the Canoas Swap Meet. “Sometimes you have to bring the whole family,” said Roberto Romero, administrator of Canoas Swap Meet. These informal importers can be seen every day at the ports of entry in Nogales. People carrying merchandise must push a button at the Mexican Customs inspection table before they are permitted to enter Mexico. If the light turns green, they can go across without inspection. But if the light turns red, they will have to open their suitcases and hope for the best. It can be even more difficult to cross with larger items. Beds and furniture have to be taken across by truck and may be subject to an importation tax, said Romero. For vendors headed to the small towns of Sonora, the same process unfolds at the Mexican Customs checkpoint at Kilometer 21. After they get through the checkpoint, they often send the items by mail to their next destination, said Martin Quezada, a vendor who works with Ramirez.

Treasure at the Swap Meet Once across the border, the secondhand merchandise that came down I-19 is joined by new clothes bought in Los Angeles and Guadalajara, Mexico, said Romero. Much of it is sold at the Canoas Swap Meet, located about a mile south of the Mariposa Port of Entry in Nogales, Sonora. The swap meet opened in June 1990 with 30 vendors selling out of tents, said Romero. Since then it has grown to 560 stores housed in permanent buildings resembling an outdoor mall, but with better food.

The unnamed stores that line the crowded “avenues” in the swap meet offer a seemingly endless variety of goods and services. “We sell everything, everything you would have in a house,” said Quezada. In addition to furniture and appliances, customers can buy laptop computers, eat dinner and get a haircut.

There...and back again In a way, the mission of the Salvation Army is completed by these truck-driving entrepreneurs. “People that buy here are maquila people,” Mendoza said, referring to the factories just south of the border which are owned by U.S. companies and staffed by Mexicans. “They make 1,000 pesos ($80-$90) a month so buying a bed is a big choice for them. They either eat or buy a bed,” he said. In addition to local maquila workers, customers come from Obregon, Santa Ana, Guaymas and other Sonoran towns. They have few opportunities to buy goods made in the U.S. because many do not have a visa to cross the border, said Victor Ocana, who sells refrigerators, washers, and dryers at the swap meet. They come to Nogales because the price goes up as you head south, according to Ocana. “If you buy a washer here for 1,000 pesos, the same one goes for 2,000 or 3,000 in Santa Ana and beyond,” he said. These small-town Sonorans come to the border and then head back to their hometowns in a mirror image of the pickup trucks moving up and down I-19 north of the border. Having sold the merchandise they bought at auction, vendors head back up the highway and the process begins all over again.

Based on a broad mix of academic quality and affordability criteria, the University of Arizona is one ofAmerica’s“BestValuesinPublicColleges,”according to “Kiplinger” magazine’s annual rankings. The analysis, published in its February edition, looks at more than 500 public institutions, considered to be “traditional four-year schools with broadbased curricula.” Schools were scored on areas including admission rates, student-faculty ratios, test scores of incoming freshmen, graduation rates, tuition, fees, room and board and financial aid. The UA ranked No. 99, ahead of the University of New Hampshire, which was No. 100. No. 1 was the University of North Carolina, which has held that spot for 11 consecutive years.

The Tucson

INSIDER Insights and trends on developing and ongoing Tucson regional business news.

Carondelet ﬁxes While the healthcare industry within Arizona and nationally is warning of dire consequences, word is leaking out that the “reorganization and revitalizaton” going on at Carondelet Health Network addresses much more acute financial problems within the organization. Indeed, the move by parent Ascension Health to bring in James K. Beckmann replacing Ruth Brinkley as president and CEO for Carondelet Health Network was part of the plan to right the ship. One of the higher-ranking officials to leave the organization last month was Leticia “Letty” Ramirez, who was vice president of advocacy, government and community relations. Meanwhile, there are those within the organization who say they’re hopeful the changes will bring about some much needed changes to organizational structure.

Hello to buybuy Baby Here’s the kind of news from the retail sector that starts the new year off on a positive note: a new retailer is about to enter the market. The New York-based superstore buybuy Baby has leased 27,000 square-feet of the 41,000 square-foot former Linens ’N Things store at 7401 N. La Cholla Blvd. in Foothills Mall. The store had been vacant August 2008 when Linens ’N Things was liquidated in bankruptcy. Interestingly, buybuy Baby is a subsidiary of Bed Bath & Beyond, a primary competitor to Linens ‘N Things. The buybuy Baby concept focuses on merchandise for newborns and toddlers and includes learning and development products, clothing, strollers and furniture. Store officials say they don’t have an opening date set yet. The Foothills Mall store will be buybuy Baby’s third location in Arizona. It already has stores in Chandler and Scottsdale.

6 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

NEWS Public records of business bankruptcies and liens filed in Tucson and selected filings in Phoenix.

BANKRUPTCIES Chapter 11 Business reorganization SSS New Cafe LLC, 2990 N. Swan Road, Suite 145. Principal: Steven Schultz. Assets: $31,368.00. Liabilities: $149,436.15. Largest creditor: Internal Revenue Service, San Francisco, $78,557.00 (contingent, unliquidated and disputed). Case No. 11-34472 filed Dec. 21. Law firm: Eric Slocum Sparks Turnkey Development LLC, 131 Amado Montosa Road, Amado. Principal: David Adams, managing member. Estimated assets: More than $500,000 to $1 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor: Not filed. Case No. 11-34766 filed Dec. 28. Law firm: Pro se. Case dismissed Dec. 30 for lack of required attorney representation.

LIENS Federal tax liens Parra’s Restaurant LLC and Jerry Boss, 2680 E. Valencia Road, Suite 110. Amount owed: $3,987.05. Dwight’s Auto Glass LLC and Dwight Lopez, 1431 W. Valencia Road, Suite 121. Amount owed: $4,721.26. Coss of North America Inc., 2163 E. Bedrock Lane, Oro Valley. Amount owed: $17,426.61. J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $117,516.22. Subs By Serendipity LLC and Lana D. Attar, 2545 E. Speedway, Suite 105. Amount owed: $4,302.51. Nanini Northwest LLC, 2120 W. Ina Road, Suite 200. Amount owed: $22,464.55. Gymboree Play & Music and Dos Amigas LLC, 7300 N. Mona Lisa Road. Amount owed: $10,308.15. La Olla Inc., 8553 N. Silverbell Road, Suite 102, Marana. Amount owed: $2,992.63. Ballistic Fabrication Inc., 2010 W. McMillan St. Amount owed: $17,090.39. Ian C. Prentice Agency LLC, 6343 E. 22nd St., Suite 161. Amount owed: $16,607.32. This Old Concentrator Inc., 3915 W. Tetakusim 2. Amount owed: $1,012.27. Ali Baba Enterprises LLC, 5401 N. Ventana Vista Road. Amount owed: $7,563.74. Don Yunker Design Inc., 1211 W. Linda Vista Blvd., Oro Valley. Amount owed: $9,071.24.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Nico’s Mexican Food and Ubaldo Garcia, 4231 W. Ina Road, Marana. Amount owed: $26,289.21. Nico’s Mexican Food and Arturo Carreon, 7114 E. Broadway. Amount owed: $11,920.39. Beaver’s Band Box Inc., 4570 E. Broadway. Amount owed: $18,818.39. Finished Granite Countertops LLC, 545 W. 22nd St. Amount owed: $2,153.66. Blue Mesa Studios and Mother Hubbard’s, 522½ E. Speedway. Amount owed: $1,831.17. Bloom’s Heating & Cooling, 802 S. Catalina Ave. Amount owed: $1,504.34. H.W. Company, 3344 N. Flanwill Blvd. Amount owed: $2,078.88. Enrichment Academy LLC, 4225 W. Ina Road, Marana. Amount owed: $6,871.72. Sparks Cycle Supply, 3409 E. Grant Road. Amount owed: $1,489.79.

Mechanic’s liens (Security interest liens of $1,000 or more ﬁled by those who have supplied labor or materials for property improvements.)

Cemex Construction Materials South LLC against Hutton Partners LLC. Amount owed: $22,986.00. Peoria Winnelson Co. against Texas Roadhouse Holdings et al. Amount owed: $28,652.01. ABC Supply Company Inc. against Charter School Find Oro Valley LLC and Legacy Traditional Charter School. Amount owed: $1,496.38. Flooring Systems of Arizona Inc. against Tucson Medical Center. Amount owed: $31,578.23. Flooring Systems of Arizona Inc. against Target Corporation. Amount owed: $20,049.00. Winroc Southern Arizona Tucson Division against against CRS DQ Holdings LLC and JP Morgan Chase Bank NA. Amount owed: $3,774.24.

Navy awards Raytheon $45.6M anti-missile contract By Alan M. Petrillo Inside Tucson Business Raytheon Company has been awarded a nearly $45.6 million cost-plus-fixed-fee contract by the United States Navy for work on both sea and land-based anti-missile defense systems. The contract is for engineering and development work on the Phalanx Close-in Weapon system, SeaRAM and Land-based Phalanx weapon system. Phalanx and SeaRAM are fast-reaction terminal defense weapons used to defeat low-and high-flying, high-speed maneuvering anti-ship missile threats that have penetrated all other defenses, according to John Eagles, a Raytheon spokesman. “This is an engineering contract that allows us to continue to enhance those existing products by upgrading them and providing them with the most up-to-date technology,” Eagles said. “We’ll continue to do the engineering work on those systems to improve the hardware and software in Tucson, while the production of the three systems will continue to be done in Louisville (Ky.).” John Patterson, senior manager of public relations for Tucson-based Raytheon Missile Systems, said the majority of the engineering work for the three systems is done in Tucson. Of the 12,000 people working for Raytheon in Tucson, half are engineers, but Patterson wasn’t able to comment on how many of those engineers would be working on the Navy contract. “The Navy contract is important because it keeps the work in front of the engineering team for those systems,” Patterson said. “We have hundreds of programs in progress, but this is one of our most important programs. We’ve sold more than 890 Phalanx systems worldwide since its inception.” Phalanx has been used by the U.S. Navy since its development in 1979, Eagles said. Phalanx is a computer and radar controlled 20-mm M61A1 Gatling gun that fires armor piercing, discarding sabot rounds at a selectable 3,000 or 4,500 rounds per minute. “It’s designed to intercept any threats that may get through a ship’s defense system that are deployed at longer ranges,” Eagles noted. “Phalanx is deployed on every surface combatant in the U.S. Navy and in similar ships in the navies of 24 other countries. It’s the most widely-used ship self-defense system in the world.” SeaRAM is a Phalanx system using missiles instead of a 20-mm Gatling gun to detect, track and engage a threat. SeaRAM re-

The SeaRAM system, engineered in Tucson at Raytheon Missile Systems, is designed to defeat high speed missile threats against U.S. combat ships.

Photo courtesy of Raytheon

PUBLIC NOTICES

places the Phalanx gun and ammo with 11 missiles in a rolling airframe missile (RAM) launcher. The RAM, which is designed to intercept a threat farther out from a ship, gets its name from the fact that the missile spins in flight. The system is able to engage multiple high-performance, supersonic and subsonic threats. “It’s always good to intercept a threat as far out as you can,” Eagles observed. A SeaRAM system was first deployed in 2009 on LCS-2 USS Independence, a littoral combat ship. Raytheon’s first international contract for SeaRAM was with Japan. The Land-based Phalanx Weapon System, called Centurion by Raytheon, was developed to protect ground forces and high value sites in Iraq, Eagles said.

Patterson pointed out that the sensor suite and radars on the Land-based Phalanx have been improved to the point they are robust enough to pick up something as small as a mortar round and shoot it down. “It’s masterful engineering work that the guys and gals in Tucson do,” he said. While admitting it is difficult to quantify the effect of the Navy contract on the local economy, Patterson said, “All our contracts work to keep our engineering workforce together in Tucson, which is good for the local economy. A healthy Raytheon is a healthy Tucson, and we’re thrilled with this latest Navy contract.”

InsideTucsonBusiness.com

JANUARY 6, 2012

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8 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

JANUARY 6, 2012

PROFILE 70 years in business

R&A CPAs build their business on relationships by ‘taking your hat’ If R&A CPAs ever do your business accounting or personal taxes, be prepared to hand over your hat to Don Radakovich. He runs the firm based on a wealth of old school values, such as meaningful relationships. “We’ll tell clients we’re going to put on your hat, to better understand, concentrate on their problems. We want their hat, their trust, because we’ve got expertise to help that they don’t have,” said Radakovich. That approach creates a deep bond that leads to frank, credible advice: “If I were you, this is what I would do.” Founded in 1942 as Aaron Paul & Company, the firm is observing its 70th year in business. Radakovich joined the company in 1967 as junior accountant at $500 a month. After Paul’s death in 1970 the firm was sold. Following more mergers and acquisitions, it ended up being owned by global giant Grant Thornton of Chicago. In 1986, Radakovich and Henry Amado re-acquired the Southern Arizona client base for $1 million. “Grant Thornton couldn’t leverage what was here and wanted out of Tucson so we bought back our practice. We actually had to pay them for clients we had brought in over 20 years,” Radakovich said. With partners Greg Anderson, Charlie Charvoz and Jeff Stephenson, and 1,000 local clients, they formed Radakovich and Amado. Today, the partners are Radakovich and Tom Furrier, Tariq Khan, Phil Dalrymple and Rudy Paredes. Although the name has been simplified to R&A CPAs, it belies their growth into more complex services. “With some bigger clients, some specialization is needed. There’s taxes, auditing, business consulting, so you bring in the team approach to provide the best service you can,” said Khan. “There are a lot of international companies doing business here, in Mexico, in Europe.” As clients evolve, R&A acquires new skills and the necessary technology to handle their changing needs. Specifically, tax laws change more than people realize, Khan said, leaving clients lost in the past. “We try to stay ahead, be leading edge. There’s been times the IRS came in to do audits and we explained to them the mechanics of the rules because simply, local agents

Roger Yohmen Photo

By Roger Yohem Inside Tucson Business

R&A’s five partners have over 140 years of total experience. Seated from left are Tariq Khan and Don Radakovich. Standing from left are Phil Dalrymple, Rudy Paredes and Tom Furrier.

didn’t have the experience or training we had,” said Furrier. In addition to traditional tax, assurance and accounting services, R&A is enhancing three relatively new specialties: internation-

Biz Facts R&A CPAs 4542 E. Camp Lowell (520) 881-4900 randacpas.com Founded 1942 35 employees

al taxes, forensic accounting and integrated business services. Paredes leads the international tax effort. As more people invest internationally, “there is a higher level of scrutiny. With a weak dollar and stronger foreign currency, investors from other countries are more compelled to capitalize on two really good opportunities. They get the benefit of their currency and depressed real estate prices,” he said. Forensic accounting is Dalrymple’s expertise, with a focus on fraud risk assessment and fraud investigation. In business, the average annual loss from fraud is 5 percent of revenue. “Fraud occurs all the time and is more likely when business is good because it’s

easier to hide. You have people with incompatible functions, they use their access to assets to misappropriate,” he explained. “But you don’t see it until a turn in the economy. Margins get thin, people pay more attention, the numbers don’t make sense.” The goal is to evaluate a company’s internal financial controls “to help prevent something bad,” Dalrymple added. Integrated business services are a “back to the future” concept. As clients grow, R&A wants to maintain a single point of contact, yet provide access to specialists as needed. “Primarily, it a one-stop approach. One person can get them all the way through their accounting, personal and corporate

R&A PAGE10

10 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

SALES SALES JUDO

10 tips for tongue-tied techies to be effective sales professionals Today I’m talking to you “non-selling professionals.” Attorneys, accountants, architects, bankers, engineers of all stripes and colors, medical professionals and basically anyone who has mastered a technical profession and would rarely, if ever, be caught dead engaging in traditional selling activities but now must find a way to generate revenues. You’ve had the stamina and brains to wonk your way through the demanding curricula of highly selective programs and as a result, you may be more introverted than those of us in sales who got “A”s in recess, lunch and PE. Now you’re faced with meeting VITOs, the Very Important Top Officers, a term coined by Anthony Parinello for “C-Level” positions in companies: chief executive, operating, financial, information, marketing and medical officers. You already have demonstrated a high degree of intellect, self discipline and structured behavior, so here are 10 basic ways to build on those strengths to develop an effective selling system:

1. Little things Make sure you’re on time. Get directions and build in plenty of time for traffic. If you’re in an unfamiliar city, consider taking a cab. Invest in a suit or a professional outfit plus dress shoes. Have someone with good taste in business attire come along with you to check you out before you swipe your card. Clothing shouldn’t be too tight, too bright or too revealing. And engineers please, no ties printed with cartoon figures! Since most bankers and attorneys have been trained in how to dress, they already know this. Inspect your outfit at least a few days before the big meeting to see if anything needs to be cleaned, ironed or repaired, especially shirt buttons. Shine your shoes. If you are flying, bring your outfit as a carry-

R&A | CONTINUED FROM PAGE 9 returns efficiently,” said Furrier. “We’ve gotten so much into specialization, we want back to a point of simple connection.” To achieve this, staff is being trained in “a more full-service approach” for clients who use multiple firms. This was “the standard approach in our industry in the 1960s and 1970s when you went to your accountant and they gave you everything you needed,” Furrier said. During that era, the firm served clients such as Precision Toyota, El Grande Markets, Capin Mercantile, cotton farmer Kirby Hughes, Sol Silverberg (founder of S. Silver-

on.Don’t check it with the airline, otherwise you run the risk of arriving in blue jeans, a polo shirt and tennis shoes as I once did.

2. Practice One of the very best ways for technical professionals to inure themselves of difficulties with public speaking is to join and actively participate in a Toastmasters’ Group. Stantec Consulting Services, for example, has a great one. If you are interested in learning more, contact Dave Hill at (520) 750-7474, ext. 7484. SAM WILLIAMS

3. Know where you are Usually the “authority gradient” — the difference between your perceived professional stature and VITO’s status — is the least whenever VITO already knows you and has successfully done business with you. The gradient also flattens if you were referred to VITO by a trusted advisor, including one of VITOs direct reports. You also will feel more comfortable as you develop a solid understanding of what VITO needs and how you can help. This most often happens as you get farther into the sales cycle. But if you are in the early stages of the sales cycle, don’t yet know VITO and haven’t been referred, the authority gradient can be steep, and you may feel uncomfortable. In these cases you may want to have a more seasoned associate take “first chair” while you take “second” until you feel comfortable flying solo.

meeting, too much time talking about the bona fides of you or your company can be a real time sink. Your reputation should proceed you or you probably wouldn’t have made it into the room.

5. Use TAPS Use your natural skill for structure to build a framework for the meeting: • Time - establish available time • Agenda - confirm an agenda • Purpose - know your purpose or goals • Steps - End your meeting with the next steps.

6. Don’t go down ‘rabbit hole’ Repress the techie urge — especially if you’re nervous — to talk too much about the intricacies or what you know. It doesn’t work when your’re dating and it won’t work with VITO. In the early stages of the sales process, VITO should talking about 80 percent of the time. For your 20 percent of the talking, stick to topics of interest to VITO (see item 9 below) and keep your responses short and to the point. Obviously, you’ll be doing more of the talking in the presentation stages of the sales cycle, but speak principally to the requirements they specified.

7. Speak to their listening’ This is a corollary to the “rabbit hole” and means you should avoid detail and summarize in the fewest possible terms that VITO perceives. VITOs have developed a perceptual set of listening filters. They “hear” words and concepts that are important to them and are “deaf” to the rest.

8. Read Faces

While it’s OK to spend a few seconds summarizing your credentials in your first

And yet, despite the look on my face, you’re still talking. Reading VITO’s facial expressions and body language are essential parts of detecting whether you’re on track. To do

berg & Sons), Williams Auto Sales, Central Alarm, Soleng Tom and Marved Construction. Central Alarm, Precision Toyota and S. Silverberg & Sons are still clients, along with R&A’s original client: Sam Marcus of Marcus Mercantile in Nogales. Other current clients include auto dealerships, local resorts, real estate developers, local and national retailers, charter schools, non-profits, physician groups and proprietary work for business owners and their family members. Overall, R&A does about 2,500 tax returns annually. “Back then, we’d go to the client’s office and sit there working. Now, there’s email back and forth. You can do a complete job and never see the client,” said Radakovich.

“Over the past 10 years, relationship building has diminished in business. Do you lose some loyalty? I don’t know.” As technology has enabled all accountants to be more efficient, Furrier is adamant that there is no substitute for face-toface business. “There is a tendency of younger generations to make buying decisions through the internet. Their first step is Google, then maybe ask around, where Don’s generation would never hire somebody that their uncle didn’t recommend. That has changed the way people hire professional services,” added Dalrymple. “They may find you differently, but they do not jump around after they find you.”

4. Your reputation

this you have to have the basic wiring for empathy.

9. The Three Wise Men and their Little Sister This is a term coined by John Care, author of “Mastering Technical Sales, the Sales Engineer’s Handbook” as a mnemonic for a VITO’s set of interests. The first of the wise men is VITO’s desire to increase revenue. The second is to decrease expenses. And the difference between these two is the implied but silent wise man, increased profits. The third of the wise men is mitigate risk. The “little sister” refers to the branding and image of the company and its products and services. If you can fit your offerings for the VITO into one or more of these four topics, then you’ll probably have a highly effective conversation.

10. Pain wins out over gain Author Care echoes the central theme of Neil Rackham’s classic, “SPIN Selling,” by reminding us that VITO will usually listen for and select those of our products that are certain to do away with or reduce pain more often than those that promise future gain. And, the more the pain hurts VITO personally (risk of termination, loss of bonus, promotion, stature or reputation) rather than institutionally (layoffs, cutbacks), the better for you.

Contact Sam Williams, president of New View Group, at swilliams@ newviewgroup.net or (520) 390-0568. Sales Judo appears the first and third weeks of each month in Inside Tucson Business.

“That’s the answer to loyalty. Anybody can produce a tax return, but if you lose the one-on-one relationship, you don’t really know the client. When you learn to understand their business, you learn to understand their personal needs,” Furrier said. “Don has been the king of that, able to help generations of businesses and families through their economic issues. That’s the unique part of us,” he added. “And during the course of time, you realize these people have become pretty close friends.”

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

InsideTucsonBusiness.com

JANUARY 6, 2012

MEDIA

Latest ratings: KOLD 13 wins, KGUN 9 is gaining By David Hatfield Inside Tucson Business KOLD News 13 continued to cement its position as Tucson’s most popular station for TV news among the coveted 25-54 year-old age group in the latest Nielsen ratings. The station’s local newscasts were No. 1-rated in each competitive weekday time slot. But if the ratings were being covered as a news story by one of the stations themselves — or as a horse race — the headline-grabbing change is that KGUN 9 News is gaining viewers, moving into second place with its early-morning “Good Morning Tucson” and 5 p.m. weekday newscasts as well as holding on to that position at 10 p.m. weekdays. And even though KVOA’s News 4 Tucson is struggling among 25-54 year-old viewers, the station can still lay claim to having high household ratings which take in all age demographics, including older viewers. Most likely that can be attributed to habits built up over the 27 years until 2004 when KVOA dominated the local news ratings. At the same time the station has fallen victim to NBC’s prime time ratings collapse over the last several years, though KVOA’s prime-time ratings within the Tucson market generally out-perform NBC’s ratings nationally. KVOA’s execs continue to maintain that not counting viewers 55 and older fails to include significant viewers with higher disposable incomes, especially in these economic times. These latest local ratings were taken Oct. 27 through Nov. 23 and didn’t include Thanksgiving Day this year. Nielsen released them over the holidays. (See chart for details.) Among other highlights in the local ratings: • KOLD News 13’s 4 p.m. newscast launched in September to replace Oprah Winfrey’s show bested KVOA’s newscast,

which has been on the air since 2005. • Scott Pelley doubled the rating among 25-54 year-old viewers that Katie Couric garnered in May, her last month on the air as anchor of the “CBS Evening News.” • KMSB’s “Fox 11 News at Nine” continued to pull a respectable rating — and beating its only competition — in what will be its final ratings before being taken over and produced by KOLD effective Feb. 1. • Six of the market’s highest-rated prime time series are on CBS and five (there was a tie for No. 10) are on ABC. The top 10 shows, ranked by the generally-accepted prime time criterion of viewers ages 18-49, are: 1. “Modern Family,” 8 p.m. Wednesdays, ABC KGUN 9 2. “Big Bang Theory,” 7 p.m. Thursdays, CBS KOLD 13 3. “How I Met Your Mother,” 7 p.m. Mondays, CBS 4. “Once Upon a Time,” 7 p.m. Sundays, ABC 5. “2 Broke Girls,” 7:30 p.m. Mondays, CBS 6. “Grey’s Anatomy,” 8 p.m. Thursdays, ABC 7. “Castle,” 9 p.m. Mondays, ABC 8. “Two & Half Men,” 8 p.m. Mondays, CBS 9. “NCIS,” 7 p.m. Tuesdays, CBS 10. (tie) “Happy Endings,” 8:30 p.m. Wednesdays, ABC “Survivor,” 7 p.m. Wednesdays, CBS • An estimated 173,000 viewers in the Tucson market tuned in to watch ABC’s “20/20” hour-long special at 9 p.m. Nov. 14 in which Diane Sawyer interviewed U.S. Rep. Gabrielle Giffords and her husband Mark Kelly. That represents 39 percent of all viewers watching TV at the time and 23 percent of all households.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Tucson Media appears weekly.

TUCSON TV NEWS RATINGS  NOVEMBER 2011 Rating, Viewers 25-54* Nov 2011

May 2011

Trend*

Nov 2010

Households* Nov 2011

5-7 a.m. Monday-Friday KOLD 13

News 13 This Morning

1.8

1.6

0.8



3.0

KGUN 9

Good Morning Tucson

1.6

1.0

1.2



2.3

KVOA 4

Tucson Today

1.3

1.5

0.6



2.4

KMSB 11

Good Morning Arizona

0.3

0.2

0.0



0.4

7-9 a.m. Monday-Friday KVOA 4

Today Show

1.9

2.0

1.8



5.1

KGUN 9

Good Morning America

1.3

1.5

0.8



3.4

KOLD 13

Early Show

0.8

1.4

0.7



2.5

KMSB 11

Good Morning Arizona

0.2

0.5



0.6

0.2

0.3

0.1



0.7

News 13

1.0

1.2

1.0



2.9

News 4

0.8

0.6

0.4



3.8

11 a.m. Monday-Friday KGUN 9

Morning Blend

12 noon Monday-Friday KOLD 13 KVOA 4

4 p.m. Monday-Friday KOLD 13

News 13

1.0

1.2

1.0



2.9

KVOA 4

News 4

0.7

0.4

0.5



6.2

5:00 p.m. Monday-Friday KOLD 13

News 13

3.6

1.8

2.9



5.6

KGUN 9

KGUN 9 News

2.0

1.4

1.1



5.8

KVOA 4

News 4

1.4

1.6

1.3



6.2

6 p.m. Monday-Friday KOLD 13

News 13

2.7

1.8

2.2



4.9

KVOA 4

News 4

1.6

1.5

1.1



5.0

KGUN 9

KGUN 9 News

1.5

1.4

1.0



5.0

9 p.m. Monday-Friday KMSB 11

Fox 11 News

1.1

1.3

1.0



1.7

KWBA 58

KGUN 9 News-CW

0.2



0.3

10 p.m. Monday-Friday KOLD 13

News 13

4.4

3.5



9.0

KGUN 9

KGUN 9 News

3.2

3.3

3.4



6.0

KVOA 4

News 4

2.8

2.7

2.1



5.1

*Notes:

Viewers 25-54: Each whole rating point represents an estimated xxxxx viewers ages 25-54 in November 2011 and 4,520 viewers in May 2011 and November 2010. Households: Percentage of all households in the market. Trend: Indicates year-over-year ratings change by more than 15 percent in viewers 25-to-54 years old. 4 p.m.: “Oprah” aired at 4 p.m. on KOLD in May 2011 and Nov. 2010.

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12 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

LOOKING BACK

“Never don’t pay attention,” especially if you are photographing bucking broncos in a rodeo arena. Louise Serpa, who has been shooting rodeo photos for 50 years, has earned bragging rights and bruises, not to mention a few close calls. During a Colorado rodeo, a bull tossed her and broke her sternum. Another time she was “squeezed like a toothpaste tube” against a fence. In her book, “Rodeo,” she warns: “I was told I could get in the ring, but not to get in the way. If you get run over, that’s too bad. So I learned pretty quickly not to get in the way. Saddle broncs are the most dangerous. They’re here one moment and there another.” Rodeo events, promoted as the most world’s most dangerous sport, didn’t deter Louise from entering the arena. She wanted to take close-up photos. She steeled herself for the dangers inherent in being in the arena. Today, Serpa is facing an even bigger challenge. She is in the terminal stages of peritoneal (stomach) cancer. Diagnosed three years ago, she has been upfront and open about her condition: “Chemo no longer works. When I need relief, I pour myself a shot of tequila.” Her physicians have given her six months to a year to live. She hopes to live long enough to make it to the Tucson Rodeo (Feb. 18-26) one last time. Born in 1925, Serpa was raised in New York City’s high society. Always a MARY LEVY PEACHIN rebellious spirit, during her debutante party, she shocked guests when she slid down the banister at the Waldorf-Astoria Hotel tearing the back of her ball gown. Perhaps it was one of those “wardrobe malfunctions.” Not long afterwards, a trip to Nevada made a lasting impression on her. “I thought I had died and gone to heaven,” she said. At 17 while working a summer job at a Wyoming dude ranch, she met Lex Connelly who introduced her to the world of rodeo. It would become her passion. While studying opera at Vassar College, where she graduated with a degree in music, Serpa frequently interrupted her studies to watch rodeos at Madison Square Garden. At the time, Serpa was singing and dancing in nightclubs, and during World War II, she performed in USO shows. Music however, would not become her career. After graduation, she married a Yale

All photos courtesy of Louise Serpa

Photographer Louise Serpa and her artistic life in the rodeo ring

Above: Monte Mask on Diablo, Tucson 2003. Left: Louise Serpa in ‘American Magazine’ 1949. Below: Hall of Fame Rodeo Clown Chuck Henson, Tucson.

graduate, a marriage that lasted only a few years. After her divorce, she headed west back to a place she loved. In 1953, she married Nevada cowboy Gordon “Tex” Serpa. They moved to a ranch in Ashland, Ore., and started a family. They had two girls, Mia and Lauren. Unfortunately that marriage also ended. In 1960, Serpa and her daughters moved to Tucson. While living in Nevada, Loise Serpa had dabbled in photography taking images of cowboys competing in local rodeos.

“They bought me film and beers,” she recalled. The photographs weren’t artistic, the cowboys used them for training purposes. Later when she arrived in Tucson, she turned the hobby into a career. When her youngest daughter was diagnosed with rheumatoid arthritis, Serpa became desperate for money. She took rodeo photographs one weekend, and for 75 cents each, she sold 5-by-7-inch prints the following weekend. “I shot from through the fence and I did anything I could to make money with my camera,” Serpa said. Never trained professionally, her shutter skills and a natural instinct for anticipating

the action gained her entry into the professional arena. In 1963, when the Rodeo Cowboys Association gave her permission, she was the first woman ever permitted inside a rodeo arena. pe By 1970, she had notched a lot of “firsts.” She was the first woman permitted on the course of England’s Grand National th Steeplechase. She shot inside the ring at Ste the Dublin Horse Show. She was featured th in a national PBS-TV documentary, “When the Dust Settles.” And in 1995, her book th “Rodeo” was published by Aperture. Serpa has been inducted into both the Cowboy and Cowgirl halls of fame. In 2002, the Rodeo Historical Society (RHS) honored her with the Tad Lucas Award, an award that recognizes contributions and achievements made to rodeo. Perennial RHS emcee host, Clem McSpadden has acknowledged Serpa as “the Ansel Adams of our sport.”

Do you have a historical Tucson story to share? Contact Mary Levy Peachin at mary@peachin.com. Her historical columns appear monthly in Inside Tucson Business.

InsideTucsonBusiness.com

JANUARY 6, 2012

GOOD BUSINESS ON GUARD

8 ideas to build integrity and trust in your business In 2011, we saw revolutions, natural disasters, and financial disasters. It was a year filled with events that even the keenest of prognosticators couldn’t — and didn’t — predict. For Better Business Bureau it was also a notable year. The organization realized its 99th year as community mediator, teacher, counselor, reporter, watchdog and proponent of marketplace trust. No other organization, private or public, plays such a delicate yet vital role in the contemporary relationship between business and customer. For an organization approaching its centennial it is encouraging to see just how relevant we are in today’s marketplace. BBB of Southern Arizona provided over 530,000 instances of service in 2011 — up from 517,000 in 2010. Instances of service reflect the number of times we assist consumers in a calendar year. There’s a long-standing misconception that the bulk of that assistance relates to complaints. In fact, only 3,200 instances of service provided in 2011 were specific to complaints. That doesn’t diminish the fact that our free conciliation process is a valuable tool for businesses and consumers. The whole idea is that if businesses voluntarily work toward fair resolution and overall

ethical conduct they uphold the premise of self regulation. Based on what we see at BBB, it’s working. Southern Arizona businesses successfully resolved 72 percent of complaints KIM STATES through BBBs voluntary process in 2011. In taking a closer look, those companies accredited through BBB resolved 98 percent of complaints filed against them while those not BBB Accredited resolved 60 percent. It tells us that the responsible business sees the consumer’s demand for help in today’s complex marketplace as a worthy challenge and as a tremendous opportunity to assert leadership. That’s good news for any of us who have a stake in the business community. Another piece of good news is that in a socially networked world that makes it easier than ever for consumers to become more informed, more involved and more outspoken, we are seeing complaint volume decrease slightly each year for the past three years at this BBB. Each year we

TUCSON BBB ACTIVITY REPORT  DECEMBER, 2011 Top 10 most complained about industries

Complaints

Settlement%

Movers

33.33

Photographers-Portrait

Massage Therapeutic

Air Conditioning Contractors & Systems

66.67

Plumbing Contractors

100

Soaps & Detergents

Martial Arts Supplies & Equipment

33.33

Physicians & Surgeons-Medical-M.D.

100

Contractors - Electrical

Backflow Prevention Devices

100

10.

Top 10 Most Inquired About Industries

Inquiries

Roofing Contractors

1284

Air Conditioning Contractors & Systems

1141

Auto Repair & Service

1069

Plumbing Contractors

1007

Auto Dealers - Used Cars

795

Contractors-General

742

Travel Clubs

544

Property Management

489

Auto Dealers - New Cars

459

Dentists

430

10.

can say we saw a drop in complaints, yet a rise in the number of reports being accessed on businesses, is a year that we can say we made progress on our mission of advancing trust in the marketplace. When trust gains ground we all win. BBB and the 2,000 local businesses that support our mission aren’t alone in this belief and there’s plenty of research available to back that claim up. Writing in the Harvard Business Review, Deppa Prahalad says that higher levels of customer and employee trust are a major strategic advantage for firms in a competitive marketplace. “Although there has been some erosion of trust from recent scandals, anecdotal evidence suggests that consumers are quite forgiving of strategic mistakes,” she writes. “People understand that the world is becoming more complex, that companies are under constant earnings pressure, and that innovation is really hard work. The mistakes that are hard for companies to recover from are largely from poor conduct. Consumers are not looking for perfection — they are looking for decency.” Our statistics reflect this. In 2011, southern Arizona consumers accessed BBB reviews on local companies more than 400,000 times. They directly accessed our list of member businesses over 60,000 times. It’s apparent in the way our services are being used by consumers that trust is relevant. Below are BBB’s Standards for Trust.

Use them to build trust and success with your customers in 2012: • Build trust — Establish and maintain a positive track record in the marketplace. • Advertise honestly — Adhere to established standards of advertising and selling. • Tell the truth — Honestly represent products and services, including clear and adequate disclosures of all material terms. • Be transparent — Openly identify the nature, location, and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy. • Honor promises — Abide by all written agreements and verbal representations. • Be responsive — Address marketplace disputes quickly, professionally, and in good faith. • Safeguard privacy — Protect any data collected against mishandling and fraud, collect personal information only as needed, and respect the preferences of consumers regarding the use of their information. • Embody integrity — Approach all business dealings, marketplace transactions and commitments with integrity.

Contact Kim States, CEO of the Better Business Bureau of Southern Arizona, at kstates@tuc son.bbb.org or (520) 888-6161. The BBB website is www.tucson.bbb.org. On Guard appears the first week of each month in Inside Tucson Business.

14 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE

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MEALS & ENTERTAINMENT

How about a Thin Mint with that cabernet? Girl Scouts of Southern Arizona has teamed up with several local restaurants for a cookies and cabernet event that takes place from 6 - 9 p.m. tonight (Jan. 6) at Medicine Man Gallery, 7000 E. MICHAEL LURIA Tanque Verde Road. The event features the dessert creations using Girl Scout cookies from the pastry chefs at The Abbey, Bobâ&#x20AC;&#x2122;s Steak & Chop House, Feast, Hub Restaurant and Creamery, Kingfisher Bar and Grill and Pastiche Modern Eatery. Tickets are $55 each and are available at the door. No matter how this cookie crumbles, youâ&#x20AC;&#x2122;re likely to enjoy some inventive desserts and fine wine while helping the Girl Scouts of Southern Arizona kick off their centennial celebration.

Skinny cocktails It may be a new year, but thereâ&#x20AC;&#x2122;s a good chance youâ&#x20AC;&#x2122;ve pledged to recycle the most famous of resolutions, to watch what you eat. The mixologists at RA Sushi have created â&#x20AC;&#x153;skinnyâ&#x20AC;? cocktails to help you watch the calories while still enjoying an adult beverage. Each of the cocktails has fewer than 200 calories and is priced at $8 each. One is called the Lychee-tennie (lemon vodka, lychee juice and agave

nectar), the Skinny Ninja (vodka, grapefruit juice, agave nectar and yuzu puree) and the Thin Ginger (lemon vodka, agave nectar, yuzu puree and fresh ginger root). Theyâ&#x20AC;&#x2122;re being offered through the end of February. I guess by that time they figure weâ&#x20AC;&#x2122;ll all have given up on the resolution. â&#x20AC;˘ RA Sushi, 2905 E. Skyline Drive in La Encantada â&#x20AC;&#x201D; www.rasushi.com â&#x20AC;&#x201D; (520) 615-3970.

Cooking with Janos A new year also begins a new season of cooking classes with noted chef Janos Wilder. Beyond learning a new culinary trick or two, whatâ&#x20AC;&#x2122;s most enjoyable about participating in one of Wilderâ&#x20AC;&#x2122;s classes is how entertaining, relaxed and fun an experience it is. On Jan. 21, Wilder will have a class on doing traditional-style Mexican cooking using ingredients we have available to us these days. The menu will include Street Vendors Corn, Yucatan Cochinita Pibil, Lamb Barbacoa with Soup and Mushroom Chilaquiles. The class begins at 1 p.m. and lasts about 2Â˝ hours. Cost is $50 per person. The class includes the cooking demonstration, a lively discussion, a beverage pairing and a tasting of the items that have been demonstrated. Recipes for all the dishes demonstrated will be provided, too. You wonâ&#x20AC;&#x2122;t find many chefâ&#x20AC;&#x2122;s with as many accolades as Wilder has who is also as personable as he is. Thatâ&#x20AC;&#x2122;s what makes the experience so much more memorable. â&#x20AC;˘ Janos, 3770 E. Sunrise Drive on the grounds of the Westin La Paloma Resort â&#x20AC;&#x201D; www.janos.com â&#x20AC;&#x201D; (520) 615-6100.

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InsideTucsonBusiness.com

JANUARY 6, 2012

OUT OF THE OFFICE ARTS & CULTURE

European circus in town UApresents hosts Zoppe Family Circus Jan. 13-15 in an intimate 600-seat tent that will be at the University of Arizona’s Rincon Vista Sports Complex, 2300 E. 15th St. The one-ring circus features HERB STRATFORD acrobatic, equestrian and canine acts and, of course, lots of clowning around. The sixth generation, Italian family circus, is a great opportunity to see how old-world European circus began, and should be great fun for the entire family. Adult ticket prices range from $29 to $34 with discounts to children, UA faculty and staff, students, military and seniors. Showtimes are at 7 p.m. Jan. 13; 1 p.m., 4 p.m. and 7 p.m. Jan. 14 and 1 p.m. and 4 p.m. Jan. 15. Parking will be available for $3 at Sabbar Shrine, 450 S. Tucson Blvd.

Theater Two productions of note open Jan. 14. “Halley’s Comet,” starring renowned actor John Amos, is part of Invisible Theatre’s season and will be performed at 8 p.m. Jan. 14 and 3 p.m. Jan. 13 at the Berger Performing Arts Center, 1200 W. Speedway on the campus of the Arizona State Schools for the Deaf and the Blind. Arizona Theatre Company debuts “Alfred Hitchcock’s The 39 Steps,” which features four performers portraying 150 different characters. The curtain at the Temple of Music and Art, 300 S. Scott Ave., goes up at 8 p.m. Jan. 14 and will be performed at 8 p.m. Saturdays, 7 p.m. Sundays and 7:30 p.m. Tuesdays through Fridays through Feb. 4.

Music Tucson Symphony Orchestra’s MasterWorks concert series features “Variations on Tchaikovsky” with guest cellist Mark Votapek at 8 p.m. Saturday (Jan. 7) and 2 p.m. Sunday in the auditorium of Catalina Foothills High School, 4300 E. Sunrise Drive.

MythBusters on stage

Art

Jamie Hyneman and Adam Savage bring their Discovery channel TV show “MythBusters” to the Centennial Hall stage for a show at 7:30 p.m. Jan. 14. The duo will perform on-stage experiments including audience participation and some recorded segments. Adult ticket prices range from $44 to $104 with discounts for students and UA faculty and staff and children and can be purchased through UApresents. Centennial Hall is at 1050 E. University Blvd. on the UA campus.

The Temple of Music and Art Gallery, 330 S. Scott Ave. and managed by Etherton Gallery, is opening a show today (Jan. 6) by Tucson photographer Jeff Smith entitled “Drivescapes.” The series includes both Smith’s stunning lightning imagery as well as the stark and unsettling images of strip mall architectural culture to make for curious juxtapositions.

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16 JANAURY 6, 2012

INSIDE TUCSON BUSINESS

PEOPLE IN ACTION PROMOTIONS Keegan, Linscott & Kenon, PC has announced Bret J. Berry, CPA, has been promoted to director of audit services. Berry has more than 14 years of accounting experience. Keegan, Linscott & Kenon, PC also promoted Adam Lohr, CPA, to audit supervisor. Lohr graduated from the University of Arizona and started his professional career with KLK in 2008.

BRET BARRY

NEW HIRES Alice Clarke Roe will direct Humana’s small business commercial sales team in Arizona. Roe has 30 years of sales

management experience, most recently in the mortgage industry. She joined Humana in July 2011 as a manager of sales administration for Arizona, Nevada and Utah. Roe has a bachelor’s degree in political science from the University of Michigan. Keegan, Linscott & Kenon, PC has hired Sean M. Tanner, CPA as an audit manager. Tanner has more than 15 years of accounting experience, and has just relocated to Tucson from Lansing, Mich.

IT’S A NEW SERVICE

TELL US ONLINE Now, your business can tell Inside Tucson Business about new hires, promotions and special awards online and from there we will tell everyone we can. Go to our website — www.InsideTucsonBusiness. com — and across the top bar you’ll see a buttom for “People in Action” with an

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option to submit your own item. There’s an easy-to-fill form that covers the main details and allows you to submit the information exactly how you want it. You can also upload a photo. Once you’re finished, click on “submit your news” and you’re finished. Simple as that. All of these notices will be posted online.

Inside Tucson Business will continue to publish announcements in the printed publication each week and we’ll take them from the submissions we received online. We hope you’ll find this to be an easier and more convenient way to submit your business’s personnel announcements. We look forward to hearing from you online.

InsideTucsonBusiness.com

JANUARY 6, 2012

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18 JANAURY 6, 2012

INSIDE TUCSON BUSINESS

CALENDAR SPECIAL EVENTS

REGULAR MEETINGS

An Evening with Noam Chomsky: â&#x20AC;&#x153;Education for Whom and For What?â&#x20AC;? Wednesday (Feb. 2), 7 p.m. to 8:30 p.m. Centennial Hall, 1020 E. University Blvd. Contact: Lori Harwood harwoodl@email.arizona.edu (520) 626-3846 http://web.sbs.arizona.edu/college/chomsky Cost: Free

Cienega Rotary Club Every Tuesday 5 to 6:15 p.m. Del Lago Golf Club 14155 E. via Rancho Del Lago Information: http://cienegarotary.org

Mexico Trade Automation Wednesday (Jan 18), 5:30 to 8 p.m. Viscount Suites Hotel, 4855 East Broadway Info: Al Altuna rsvp@saleo.org or (520) 977-3626 Cost: $30 (members & 1st-timers: $25) RSVP by Jan. 6 www.saleo.org Women Impacting Tucson luncheon Monday (Jan. 9), 11:20 a.m. to 1 p.m. Manning House, 450 W. Paseo Redondo RSVP: wit@manninghouse.com or (520) 770-0714 Cost: $25 (with RSVP by Jan. 5 - $20) Women In Construction Week Tucson Chapter of the National Association of Women in Construction Sunday (March 4) to Saturday (March 10) Contact: Michelle Quinn mquinn526@hotmail. com or (520) 440-7627 Website: www.nawictucson.org Free

Connections Monthly contacts luncheon First and third Wednesdays 11:30 a.m. to 1 p.m. McMahonâ&#x20AC;&#x2122;s Prime Steakhouse 2659 N. Swan Road RSVP: Cindy Morgan at (520) 403-8798 or morgansautoshop@aol.com Cost: $16 includes lunch Conquistador Toastmasters Every Wednesday 7 to 8:30 p.m. ASBA conference center 4811 E. Grant Road, Suite 261 Contact: Saul Silven at (520) 885-3497 RSVP: requested for guests Cost: guests free Desert Stars Toastmasters Every Tuesday, noon U of A Science & Tech Park Building 9040, Room 2216 Contact: Jim Eng (520) 663-9118 or jim_eng@juno.com Information: www.Desertstars.freetoasthost.com

Eastside Cheers, where everybody knows your business First and third Wednesdays, 4 p.m. Radisson Hotel, 6555 E. Speedway Information: (520) 906-5037 or (520) 907-0326 Cost: $8 guests Entrepreneurial Mothers Association Monthly luncheon First Thursday, 11:30 a.m. to 1 p.m. Old Pueblo Grill, 60 N. Alvernon Way Information: Sherry Goncharsky, sherry@tucsoncomputerskills.com Financial Workshops for Women Every Tuesday at 6 p.m. Barca Financial Group 5470 E. Speedway Suite A106 Information: www.barcaďŹ nancial.com Foothills Optimist Club First and third Wednesdays, noon Macayoâ&#x20AC;&#x2122;s Restaurant, 7360 N. Oracle Road Info and RSVP: (520) 744-5927 Foothills Rotary Club Every Friday, noon Metropolitan Grill, 7892 N. Oracle Road RSVP: Eric Miller, (520) 979-1696 Foothills Club of Tucson Second Friday, 12:30 p.m. McMahonâ&#x20AC;&#x2122;s Prime Steakhouse 2959 N. Swan Road RSVP: Leslie Hargrove lkhargrove_fct@hotmail.com

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Information: www.foothillscluboftucson.org Cost: $20 Fountain Flyers Toastmasters Every Tuesday, 6:30 a.m. Cocoâ&#x20AC;&#x2122;s Restaurant, 7250 N. Oracle Road Information: Cheryl at (520) 730-4456 Cost: Free to visit Got a business challenge, 30 minutes & 20 bucks? Every Tuesday and Thursday, 8 to 9 a.m. Savaya Coffee Market, 5530 E Broadway Ste.174 Info: Dale Bruder, Dynamic Strategist strategy@dalebruder.com, (520) 331-1956 www.dalebruder.com $20 Group Referral Organization networking group First and third Wednesdays Luna Bella, 2990 N. Swan Road Suite 145 Information: www.grotucson.com GRO II Second and fourth Thursdays Sam Hughes Championship Dining 446 N. Campbell Ave. Suite 150 Info: www.grotucson.com Independent Business Networking Tucson â&#x20AC;&#x153;IBNTâ&#x20AC;? Second and fourth Tuesdays El Parador, 2744 E. Broadway RSVP: Jennifer Row at (520) 603-3315 or jenniferrr@novahomeloans.com Cost: First time is free Inside Connections Second and fourth Wednesday, 7:15 a.m. Home Town Buffet, 5101 N Oracle Road RSVP: Eric Miller at (520) 979-1696 Institute of Management Accountants Third Thursday, (September through May) 6:30 p.m. to 8 p.m. Old Pueblo Grille, 60 N. Alvernon Way RSVP: Gale McGuire (520) 584-3480 or gale.mcguire@roberthalf.com International Association of Administrative Professionals San Xavier Chapter monthly dinner & professional development meeting Every third Wednesday, 5:30 to 8 p.m. Sheraton Four Points Hotel, 1900 E. Speedway RSVP: Kay at franklin@dakotacom.net or (520) 883-1819 Cost: $18 members, $20 nonmembers, includes dinner â&#x20AC;&#x153;Real Estate Investment Planâ&#x20AC;? Keller Williams Southern Arizona 1745 E. River Road, Ste. 245 Third Tuesday, 6 p.m. Workshop for individuals considering investment RSVP by noon Mondays (520) 909-9375

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Kiwanis Club of Oro Valley Wednesdays, 7 a.m. Holiday Inn Express, 10150 N. Oracle Road Info: jepsenaz@comcast.net Cost: $8 LeTip Midtown Every Tuesday, 7:01 to 8:31 a.m.

InsideTucsonBusiness.com

JANUARY 6, 2012

CALENDAR El Parador Restaurant, 2744 E. Broadway RSVP: (520) 296-9900 Cost: $10 LeTip Tucson Executives Chapter meeting Every Tuesday, 11:30 a.m. to 1 p.m. Macayo’s Mexican Kitchen, 7360 N. Oracle Road RSVP: (520) 299-9600, bwmartin@cox.net LeTip International I-19 Business Networkers Every Tuesday, 11:30 a.m. to 1 p.m. Amado Territory, I-19 exit 48 Information: (520) 591-5500 Cost: $15 Lions Club – Tucson Breakfast Every Wednesday, 7 to 8 a.m. Sheraton Hotel, 5151 E. Grant Road Information: tjaz@comcast.net Marana Chamber of Commerce Breakfasts First Wednesday, 7:30 a.m. Taste of Texas, 8310 N. Thornydale Road RSVP: (520) 682-4314

Networking breakfast, First and third Wednesday, 7 to 8:30 a.m. Hometown Buffet, 5101 N. Oracle Road Information: (520) 240-4552 Northern Pima County Chamber of Commerce Monthly Membership Breakfast Fourth Thursday of the month, 7 to 8:30 a.m. El Charro Café, 7725 N. Oracle Road http://the-chamber.com Northwest Power Group (referral group) Mondays, 7:30 a.m. to 8:30 a.m. Hilton El Conquistador Country Club, 10555 N. La Cañada Drive RSVP: (520) 229-8283 Cost: $50 one-time fee (ﬁrst two visits free) Northwest Power Group Networking business group Every Tuesday, 7:15 to 8:30 a.m. Village Inn, 6251 N. Oracle Road RSVP: Don at (520) 777-4240 Cost: Breakfast

RSVP: (520) 207-0804 Cost $15 Rotary Club of Tucson Every Wednesday Noon Doubletree Reid Park Hotel, 445 S. Alvernon RSVP: Mary Laughbaum (520) 623-2281 www.tucsonrotary.org Rotary Club of Tucson Sunrise Thursdays, 7 to 8:10 a.m. Arizona Inn, 2200 E. Elm Street Information: rsuskind@mac.com Rotary Club of Tucson Sunset Tuesdays, 6 to 7:30 p.m. El Parador Restaurant, 2744 E. Broadway Information: (520) 349-4701 SAAEMA Monthly Program Third Tuesday, 11:30 a.m. to 1 p.m. Viscount Suites Hotel, 4855 E. Broadway Information: www.saaema.org RSVP: m.sage@wt-us.com Cost: $20 members, $30 nonmembers

Marana Chamber of Commerce Mixer Fourth Tuesday of each month, 5:30 to 7:30 p.m. Locations vary Information: www.maranachamber.com

Oro Valley Business Club Monthly Luncheon First Thursday of each month. Carrabbas Italian Grill, 7635 N. Oracle Rd. Information: www.scoretucson.org, (520) 670-5008 Cost: $15 members and non-members

Metropolitan Tucson Convention & Visitors Bureau First Tuesday Monthly Luncheon, 11:45 a.m. to 1 p.m. Arizona Inn, 2200 E. Elm St. RSVP Required: (520) 770-2131 or www. visitTucson.org/PartnerRSVP Cost: $25 MTCVB Partners; $30 Others

Oro Valley Kiwanis Club Every Wednesday, 6:45 to 8 a.m. Resurrection Lutheran Church Outreach Center 11575 N. 1st Ave. Information: Gary Kling (520) 818-3278

Saguaro Rotary Club Every Tuesday, 12:10 to 1:15 p.m. The Manning House, 450 W. Paseo Redondo Information: Fred Narcaroti (520) 628-7648

NAWBO Monthly Mixer Third Thursdays, 4 to 7 p.m. Locations vary Info: info@nawbotucson.org

Pima Rotary Club Weekly meeting Every Friday except the last Friday of the month 11:30 a.m. to 12:30 p.m. Chad’s Steakhouse, 3001 N. Swan Road Information: www.pimarotary.org Note: Bring your own lunch

Saguaro Toastmasters Every Monday, 6:30 p.m. Ward 6 ofﬁce, 3202 E. First Street Info: Mark Salcido (520) 991-6127 or gerontologist@hotmail.com http://saguaro.freetoasthost.com

Pima Rotary Club Monthly membership mixer Last Friday, 5 to 7 p.m. Location varies Information: pimarotaryclub@yahoo.com

SCORE Southern Arizona free business counseling Every Tuesday, Wednesday and Thursday 9 a.m. to 1 p.m. SCORE Main Ofﬁce, 330 N. Commerce Park Loop Info: (520) 670-5008

NAWBO Monthly Breakfast Fourth Tuesdays, 8 to 9:30 a.m. Locations vary Info: Morella Bierwag, (520) 326-2926 or info@nawbotucson.org NAWBO Monthly Luncheon Second Tuesdays, 10:30 a.m. to 1:30 p.m. Locations vary Info: Morella Bierwag, (520) 326-2926 or info@nawbotucson.org National Association of the Remodeler’s Industry (NARI) Tucson Third Tuesday, 5:30 p.m. Varies, call for location Information: (520) 300-1056 Cost: Free to members and ﬁrst timers Networks @ Work First Wednesdays, 11:30 a.m. to 12:30 p.m. Sullivan’s Steak House, 1785 E. River Road Contact: Ricardo Carrasco at (520) 977-8812 or Ricardo@gsﬂoans.com Cost: Meal from menu ($12-$25) Networking Club in Northwest Tucson Ali Lassen’s leads club First Wednesday, noon to 1 p.m. Sullivan’s Steak House, 1785 E. River Road RSVP: Johnna Fox (866) 551-3720 Networking Entrepreneurs of Tucson

Saguaro Business Club Business leads meeting Every Thursday, 7 to 8 a.m. Mimi’s Café, 120 S. Wilmot Road RSVP: (520) 891-5430

Project Management Institute (PMI) Tucson Chapter Second Tuesday of the month, 5:30 to 7:30 p.m. Hotel Arizona, 181 W. Broadway Information: www.pmi-tucson.org or archboldk@consulting.ky Cost: $25 members, $30 nonmembers

SCORE Southern Arizona free business counseling Every Wednesday, 9 a.m. to noon Oro Valley Library, 1305 W. Naranja Drive Call Oro Valley Library at (520) 229-5300 to schedule

Roadrunner Civitan Club of Civitan International First and third Wednesdays, noon to 1 p.m. Lodge on the Desert, 306 N. Alvernon Way

SCORE Southern Arizona free business counseling Every Monday, 10 a.m. to 1 p.m. Nanini Branch Library, 7300 N. Shannon Road

{YOUR EVENT HERE} Submissions: Deadline for calendar submissions is 10 days prior to publication. Post your event online at www. insidetucsonbusiness.com/calendar. Email any questions to pmcnamara@azbiz.com.

A complete calendar listing is at

InsideTucsonBusiness.com

Info: (520) 791-4626 SCORE Southern Arizona free business counseling Every third Thursday, 9 a.m. to 1 p.m. Joel D. Valdez Main Library 101 N. Stone Ave. First come-ﬁrst served SCORE Southern Arizona free business counseling First and third Tuesday 9 a.m. to 1 p.m. ASBA 4811 E. Grant Road, Suite 261 Call ASBA at (520) 327-0222 to schedule SCORE Southern Arizona free business counseling Every Tuesday 9 a.m. to noon Marana Urgent Care Center (South Classroom) 8333 Silverbell Road Info: (520) 682-4314 Small Business Commission Meeting Fourth Thursday 3 to 5 p.m. Mayor and Council chambers 255 W. Alameda First ﬂoor Info: Ellen Hitchings, (520) 791-4343 ext. 245 or small.business@tucsonaz.gov The S.M.A.R.T. Group Every Friday 12 to 1:30 p.m. Nova Home Loans Multi-Media Conference Room 6245 E Broadway Blvd., 5th Floor $25 Members $45 nonmembers Contact: Dale Dillon Lips (520) 429-6000 or dillonadvisory@gmail.com Society for Human Resource Management - Greater Tucson Chapter Second Tuesday 11 a.m. to 1 p.m. DoubleTree, 445 S. Alvernon Way Membership:Garrett Kowalewski, (520) 647-9100 garrettk@staffmattersinc.com RSVP by Thursday prior to meeting: www.shrmgt. org Solutions Forum Fourth Monday Noon to 4 p.m. Clements Insurance 6245 E. Broadway, Suite 310 Information: 1-800-716-9626 or (480) 200-5678 RSVP required Open only to business owners and divisional heads Southern Arizona Chapter of Enrolled Agents Third Tuesday 11:30 a.m. Knights of Columbus Hall 601 S. Tucson Boulevard Info: (520) 751-8986, www.aztaxpros.org/sacea Southern Arizona Architects & Engineers Marketing Association Third Tuesday 11:30 a.m. to 1 p.m. Viscount Suite Hotel 4855 E. Broadway RSVP: James Patrick, james.patrick@stantec.com Cost: $20 members / $30 Nonmembers

20 JANAURY 6, 2012

INSIDE TUCSON BUSINESS

BRIEFS With 2012 now underway, we’re beginning to collect data for the 2013 edition of The Book of Lists. The upcoming categories that will be published in Inside Tucson Business are: • Jan. 13: Economic development organizations • Jan. 20: Advertising agencies, Public relations firms, Graphic design firms • Feb. 3: Paid subscription newspapers, Free newspapers, Magazines • Feb. 10: Commercial real estate brokers, Commercial building contractors, Commercial real estate managers If your company is in one of these categories, now is the time to update your profile. Go to InsideTucsonBusiness.com and click the Book of Lists tab. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

MANUFACTURING

Raytheon lands $69M missile contract Raytheon Missile Systems has received a $69 million missile order from the Pentagon.

The contract calls for the U.S. Navy and Air Force to receive 115 air-to-air AIM-9X Block II missiles from Raytheon. The Air Force will get 66 of the missiles; the Navy, 49. According to the U.S. Defense Department announcement, 41 percent of the work on the contract will be done in Tucson, with the rest to be performed at Raytheon locations in Massachusetts, California, Connecticut and Ontario, Canada.

BIOTECHNOLOGY

Artificial heart sales up again Tucson-based artificial heart manufacturer SynCardia Systems, Inc., announced that it nearly doubled sales in 2011 for the second straight year. The sales figures represent a four-fold increase since 2009. There are currently 50 SynCardia Certified Centers worldwide with an additional 39 hospitals in the process of completing the company’s certification process. SynCardia recently expanded its sales and clinical support staff, hiring four regional sales managers and four additional clinical support specialists. In November, the company set up shop in Germany to meet growing demand in Europe.

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Bashas’ deal brings it back to ‘normal’ Bashas’ says it has refinanced its $185 million in secured debt with a new lending group so that it can restructure the debt faster than originally planned. The $95 million term loan facility, which matures in 2015, is part of a larger re-financing effort by the company, which also includes a new $75 million senior secured asset-based credit facility that matures in December 2015. The Chandler-based grocer said the refinancing allows it to operate under more normal business circumstances with greater flexibility while giving it financial security and stability. The company has been operating solely on its own cash since emerging from Chapter 11 bankruptcy protection in August 2010. Under the refinancing, Bashas’ said it has repaid its original secured lenders and will continue to make scheduled payments to its unsecured creditors, which are mostly vendors. “We are grateful to our vendors for returning our company back to regular purchase terms much faster than we anticipated,” said Edward Basha, vice president of retail operations. “While we continue to operate in a challenging recession, we remain true to our commitment to become a stronger company. We’ve come a long way, and this refinancing gets us one step closer to repositioning our company in a strong financial position.” The new lending partners are Wells Fargo Capital Finance, Tennenbaum Capital Partners, GB Merhcant Partners and an affiliate of Stone Tower Capital. Bashas’ said it will operate with a revolving line of credit from Wells Fargo and a four-year term loan arranged by GA Capital.

In addition to its namesake Bashas’ chain, the company operates Food City and AJ’s Fine Foods stores.

No Arizona stores on Sears’ closing list Sears Holdings, which announced plans to close up to 120 “underperforming” Sears and Kmart stores, didn’t include any stores in Arizona on its initial list of 80 closures planned for this year. The company has Sears stores in Tucson at Park Place and Tucson malls and one at the Mall at Sierra Vista. It was one Kmart store in Tucson, at 7055 E. Broadway.

Home Depot to alter supply operations In a move to cut costs and improve efficiency, the Home Depot is changing its distribution operations in Arizona and will close a center it has in west Phoenix. The closure will eliminate 144 jobs. The distribution center was operated by UTI, an international logistics, distribution and freight forwarding company, under contract to Home Depot. It’s expected to be closed by July. As part of the change, Home Depot is shifting will move its major Arizona distribution center to a company-owned facility in Mira Loma, Calif. It will also maintain a 465,000 square-foot “rapid deployment center” in Tolleson.

FINANCIAL

FDIC ends 2011 with bank closure in Ariz. The Federal Deposit Insurance Corp. finished 2011 with closure of Western National Bank, a one-bank operation in Phoenix. It was the third Arizona bank to fail this year and the 12th to be closed since the econom-

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BRIEFS ic downturn started in late 2007. Only one of those closures has included a bank with operations in the Tucson when the former First National Bank of Arizona was closed in July 2008 and most of the assets turned over to Mutual of Omaha Bank. Western National Bank was closed on Dec. 16 and its desposits assumed by Seattle-based Washington Federal Savings, which already has numerous offices throughout Arizona. According to publicly-filed data as of Sept. 30, 93 percent of Western National Bank’s $28.4 million of non-performing loans were in commercial real estate.

HEALTH CARE

UA Cancer Center partners for clinic in Phoenix The University of Arizona Cancer Center and Phoenix’s St. Joseph’s Hospital and Medical Center are partnering for the construction of a $135 million, 250-000 square-foot outpatient cancer care facility in Phoenix. The Arizona Board of Regents gave its blessing to the partnership, specifying that the projected be paid for through gifts, contributions from other government sources and new debt. Dr. Tom Brown, chief opperating officer of the UA Cancer Center and professor of medicine at UA, said he expects $50 miillion to be raised through philanthropy. Also, the City of Phoenix has already committed $14 million.

The UA and the hospital say they will recruit up to 30 cancer specialists and researchers to support clinical trials. The facility will be built as part of the Phoenix Biomedical Campus. St. Joseph’s in Phoenix is owned Catholic Healthcare West, based in San Francisco. It is not directly affiliated with Tucson’s St. Joseph’s Hospital, which is part of the Carondelet Health Network.

EDUCATION/RESEARCH

UA’s Dr. Ghisan lands diabetes research grant The National Institue of Diabetes and Digestive and Kidney Disorders has awarded a $1.65 million grant to Dr. Fayez Ghishan at the University of Arizona College of Medicine, to study the NHE8 protein. Ghishan, along with co-investigator Hua Xu, Ph.D., associate professor of pediatrics at the UA Steele Chidren’s Research Center, previously discovered that NHE8, a sodium/hydrogrn exchanger, does more than simply transport sodium through the gastrointestinal tract. The study will focus on three areas: understanding how NHE8 impacts mice at various developmental stages; characterizing the role of NHE8 in the gastrointestinal tract and how it responds to epithelial injury; and uncovering the role of NHE8 in mice sterility. “Our research could lead us to discover that NHE8 plays a pivotal role in male infer-

tility and other gastrointestinal problems, which may ultimately lead to the development of novel treatments,” said Ghishan. The study is titled, “Regulation of a Novel Intestinal NHE Isoform (NHE8).” Ghishan is head of the UA Department of Pediatrics, director of the Steele Children’s Center, and physician-in-chief of The University of Arizona Medical Center – Diamond Children’s.

• • • • • • • •

NONPROFITS

• • •

Cox donates $87K to local groups Cox Communications charity organization Cox Charities announced that it donated more than $87,000 to area non-profit organizations. Through programs like its Power of One campaign, in which Cox customers added $1 to their bill payment for charities, Cox employees and corporate partners donated to 19 area charities. The Southern Arizona area organizations that were awarded grant funds this year include: • Arizona Theatre Company: $5,000 • Boys & Girls Club of Sierra Vista: $6,000 • Casa de los Niños: $5,000 • Cochise Robotics Association: $6,500 • Educational Enrichment Foundation: $5,000 • Fractured Atlas: $5,000 • Friends of Saguaro National Park: $5,000

•

Gabriel’s Angels: $2,500 Jobs for Arizona’s Graduates: $3,000 La Paloma Family Services: $3,500 Our Family Services: $2,000 Pan Left Productions: $3,000 Planetary Science Institute: $2,500 Reid Park Zoo: $10,000 Southern Arizona Children’s Advocacy Center: $5,000 The Animal League of Green Valley: $2,500 Tucson Urban League: $4,000 Wright Flight: $4,000 Youth On Their Own: $8,000.

Marketing association receives national award The Tucson chapter of the American Marketing Association (TAMA) has received a 2010-11 Special Merit Award from the organization’s international headquarters. The AMA’s annual Chapter Excellence Awards program highlights exceptional performance among the organization’s 78 professional chapters across the U.S. and Canada. The Tucson Chapter was awarded with Programming Special Merit for outstanding performance in that area.

After 21 years, PAG says it’s time to raise the gas tax By Garry Duffy for Inside Tucson Business Arizona’s gasoline tax has stood at 18 cents per gallon for 21 years. Factor in an average rate of inflation of 2.67 percent over those years, and that 18 cents is now worth what a dime was in 1990. Or, looking at it another way, if the rate of inflation had been kept up, that 18 cents tax would be 31 cents today. Either way, money from the Highway Users Revenue Fund (HURF) coming into seven jurisdictions in the Pima Association of Governments is buying less these days. PAG, as it has done for the past several years, is proposing to raise the gas tax by 5 cents per gallon to 23 cents per gallon with an annual inflationary adjustment over the next five years. The request was included PAG’s annual policy submittal to the state Legislature, which begins its 2012 session next week. A new study released by the Institute on Taxation and Economic Policy, based in Washington, D.C., found that 36 states, including Arizona, have fixed tax rates that do not account for inflation and that the buying power of the gas tax in those states has fallen 27 percent since 2000.

“The ongoing decline of the gas tax is troubling in large part because of the tax’s enormous importance to the efficient and safe operation of state transportation systems,” according to the report. “Gas and diesel tax rates would have to rise over 6 cents per gallon, on average, to return them to the level of purchasing power they had the last time they were raised.” Adding to the declining buying power of the gasoline tax, lawmakers have taken HURF funds intended for counties, cities and towns and used the money to help balance the state’s budget. In a memo to supervisors, Pima County Administrator Chuck Huckelberry says more than $11.1 million of HURF money has “been diverted from Pima County to fund state agencies” over the past four years. Pima County also gets hit because the state HURF distribution formula favors municipalities over unincorporated areas of counties. Cities and towns get 23 percent of HURF dollars with a 3 percent bump on that going to cities with populations over 300,000. Counties get 19 percent of the overall annual distribution to fund projects in unincorporated areas. The rest goes to the Arizona Department of Transportation.

Maricopa County, with a population of more than 3.8 million in the 2010 Census — 60 percent of the state’s total poulation of 6.4 million — has 25 municipalities that take in all but 6 percent of the population. Pima County, with a population of 980,263 in the latest Census, has five municipalities with 36 percent of people living outside of any of them. Besides the state gas tax, there is a fed-

eral tax of 18.4 cents per gallon. That figure hasn’t changed since 1993. The federal dollars are distributed to state and local governments and generally can be employed in a wider use range than state or local funds.

Garry Duffy, a former reporter for the Tucson Citizen, is a consultant to the Pima Association of Government’s Regional Transportation Authority.

Your business is just a number to us… #1 Southern Arizona’s LARGEST Independent Office Products Dealer 520-352-2656 | 877-534-1533 www.OfficeSmartUSA.com

22 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE Stock market quotations of some publicly traded companies doing business in Southern Arizona

Company Name

Symbol

Jan. 4

Dec. 29 Change

52-Week 52-Week Low High

Tucson companies Applied Energetics Inc CDEX Inc Providence Service Corp UniSource Energy Corp (Tucson Electric Power)

AERG CEXI.OB PRSC UNS

0.07 0.03 14.27 36.61

0.09 0.03 13.92 37.45

-0.02 0.00 0.35 -0.84

0.04 0.02 8.35 32.96

0.97 0.06 18.00 39.25

9.45 0.24 3.26 5.81 56.70 8.55 6.61 76.80 23.23 55.55 4.19 16.05 28.17 24.73 17.15 24.49 12.58 84.07 37.09 41.80 8.01 43.03 58.17 13.12 39.83 24.45 42.74 55.53 185.54 31.15 52.30 4.60 34.95 26.89 6.77 47.36 24.27 0.73 20.21 26.47 38.00 50.30 32.65 30.47 23.71 40.61 58.63 34.91 6.54 48.59 43.17 21.05 36.50 30.80 12.98 8.60 42.18 27.78 50.00 15.98 29.57 36.49 18.52 108.78 54.11 5.03 27.57 59.71 32.83 28.56 6.67 17.14

8.52 0.54 3.00 5.29 54.05 8.26 6.10 76.52 23.00 54.83 3.90 14.75 26.13 23.46 16.74 23.76 12.49 84.18 36.67 41.04 8.12 45.38 57.61 12.20 36.31 22.82 41.53 53.98 183.99 30.69 52.41 4.41 32.65 27.18 6.34 50.09 24.33 0.69 18.98 25.06 37.55 50.39 32.67 29.15 22.36 39.46 58.13 35.34 5.95 48.63 42.32 21.14 35.69 33.33 12.53 8.40 42.84 26.20 51.71 16.02 29.07 35.90 18.95 104.47 53.26 5.19 26.88 59.73 33.28 27.11 6.15 16.09

0.93 -0.30 0.26 0.52 2.65 0.29 0.51 0.28 0.23 0.72 0.29 1.30 2.04 1.27 0.41 0.73 0.09 -0.11 0.42 0.76 -0.11 -2.35 0.56 0.92 3.52 1.63 1.21 1.55 1.55 0.46 -0.11 0.19 2.30 -0.29 0.43 -2.73 -0.06 0.04 1.23 1.41 0.45 -0.09 -0.02 1.32 1.35 1.15 0.50 -0.43 0.59 -0.04 0.85 -0.09 0.81 -2.53 0.45 0.20 -0.66 1.58 -1.71 -0.04 0.50 0.59 -0.43 4.31 0.85 -0.16 0.69 -0.02 -0.45 1.45 0.52 1.05

8.45 0.20 2.65 4.92 51.83 7.02 4.36 65.35 21.79 43.77 3.30 12.30 21.40 19.19 14.61 22.80 8.49 69.54 31.16 31.30 6.41 37.42 43.64 8.03 28.85 16.92 28.13 41.22 146.73 24.28 39.87 2.69 27.85 25.73 5.02 42.14 21.09 0.49 12.14 18.07 32.90 38.64 21.69 25.49 13.68 33.20 49.20 23.44 3.29 38.35 34.02 15.93 30.98 31.25 10.47 7.15 32.12 20.96 45.28 14.10 24.34 27.62 15.51 77.73 34.43 3.96 20.10 48.31 30.34 22.58 4.44

18.47 8.89 6.29 15.31 66.64 13.01 9.27 87.65 36.33 56.58 7.29 29.88 51.50 27.16 42.50 56.61 15.00 88.68 46.70 41.72 13.21 61.08 70.15 13.50 61.35 29.68 42.90 62.28 194.90 35.79 56.46 6.18 48.36 38.40 16.11 57.39 25.85 3.47 21.54 27.45 45.31 56.50 33.26 42.78 27.42 56.86 72.50 41.00 8.69 53.12 45.65 25.43 40.75 94.79 17.28 13.59 43.22 31.89 59.78 23.46 36.71 38.62 27.72 109.10 54.58 11.56 28.94 61.06 47.11 34.25 8.45 25.60

Southern Arizona presence Alcoa Inc (Huck Fasteners) AA AMR Corp (American Airlines) AMR Augusta Resource Corp (Rosemont Mine) AZC Bank Of America Corp BAC Bank of Montreal (M&I Bank) BMO BBVA Compass BBV Belo Corp (KMSB 11, KTTU 18) BLC Berkshire Hathaway (Geico, Long Cos) BRK-B* Best Buy Co Inc BBY BOK Financial Corp (Bank of Arizona) BOKF Bombardier Inc* (Bombardier Aerospace) BBDB CB Richard Ellis Group CBG Citigroup Inc C Comcast Corp CMCSA Community Health Sys (Northwest Med Cntrs) CYH Computer Sciences Corp CSC Convergys Corp CVG Costco Wholesale Corp COST CenturyLink (Qwest Communications) CTL Cvs/Caremark (CVS pharmacy) CVS Delta Air Lines DAL Dillard Department Stores DDS Dover Corp (Sargent Controls & Aerospace) DOV DR Horton Inc DHI Freeport-McMoRan (Phelps Dodge) FCX Granite Construction Inc GVA Home Depot Inc HD Honeywell Intl Inc HON IBM IBM Iron Mountain IRM Intuit Inc INTU Journal Communications (KGUN 9, KMXZ) JRN JP Morgan Chase & Co JPM Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN KB Home KBH Kohls Corp KSS Kroger Co (Fry's Food Stores) KR Lee Enterprises (Arizona Daily Star) LEE Lennar Corporation LEN Lowe's Cos (Lowe's Home Improvement) LOW Loews Corp (Ventana Canyon Resort) L Macerich Co (Westcor, La Encantada) MAC Macy's Inc M Marriott Intl Inc MAR Meritage Homes Corp MTH Northern Trust Corp NTRS Northrop Grumman Corp NOC Penney, J.C. JCP Pulte Homes Inc (Pulte, Del Webb) PHM Raytheon Co (Raytheon Missile Systems) RTN Roche Holdings AG (Ventana Medical Systems) RHHBY Safeway Inc SWY Sanofi-Aventis SA SNY Sears Holdings (Sears, Kmart, Customer Care) SHLD SkyWest Inc SKYW Southwest Airlines Co LUV Southwest Gas Corp SWX Stantec Inc STN Target Corp TGT TeleTech Holdings Inc TTEC Texas Instruments Inc TXN Time Warner Inc (AOL) TWX Ual Corp (United Airlines) UAUA Union Pacific Corp UNP Apollo Group Inc (University of Phoenix) APOL US Airways Group Inc LCC US Bancorp (US Bank) USB Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT Walgreen Co WAG Wells Fargo & Co WFC Western Alliance Bancorp (Alliance Bank) WAL Zions Bancorp (National Bank of Arizona) ZION Data Source: Dow Jones Market Watch *Quotes in U.S. dollars, except Bombardier is Canadian dollars.

Is your 401(k) ready to be a real retirement plan? In 2011, 60 percent of American households with members nearing retirement age have 401(k)-type retirement plans according to government data. The operative word there is “retirement” plans. Yet, • 11,722.98 was the Dow Jones Industrial Average close on Jan 14, 2000. • 11,866.39 was the Dow Jones Industrial Average close on Dec. 16, 2011. So how much did your “retirement” plan grow over the last 11 years? We have experienced extreme market volatility and I hear people say, “I’m almost back to where I was before 2008.” But it is important to understand how hard it is to overcome the losses and the volatility. If you lose 30 percent, you have to make 42 percent just to get back to where you started. If you lose 50 percent, you have to make 100 percent to get back to where you started. With a Fixed Indexed Annuity (FIA), you only take a portion of the “up” in the market but you never have any downs. The history of FIAs shows that modest gains that never experience a loss will outperform a volatile market over time. On Aug. 8, 2011, investors lost $1 trillion dollars in one day as reported by CNN Money. That represented the largest drop since Dec. 1, 2008, when the Dow fell over 9 percent. Good, diversified portfolios did not avoid the carnage that day nor did diversification boost retirement plans in 2008. With the market, buying and selling decisions must be made. When do you sell? Who wants to sell a winner while it’s winning? But, if you wait too long, it may become a loser. Who knows? When you are in the market, how do you determine how much you can withdraw annually in retirement and still have enough money to last for your lifetime? The old 4 percent rule does not apply according to a study by the financial market research firm Dalbar. There are no guarantees. But there are good alternatives. FIAs take out all the guesswork. With a lifetime income rider, you can determine exactly how much money you will have on a monthly basis for the rest of your life. Even if you run out of money, you will never run out of income. These riders cost less than 1 percent to guarantee 5 -to-7 percent growth and lifetime income.

SUSAN L. MOORE VAULT

With FIAs, you automatically capture your gains each year and they are locked in without having to make a selling decision. Once you have these gains, they cannot be reduced by the volatility of the

stock market. The FIA enables you to be passively linked to the Dow, the S&P, bonds and more without taking any risk. Safety, growth, guarantees, lifetime income. All benefits of Fixed Indexed Annuities. The securities industry also offers variable annuities...not to be confused with fixed annuities. Variable annuities have very high fees for mortality and expenses, administration, fund fees, rider fees...all, very often, on top of broker management fees. These fees can run from 2 percent to 4 percent or more annually. Yet, you can still lose money because a variable annuity is a market-linked product subject to market volatility. The bottom line is, the nest you put your retirement egg in could be precariously perched above a deep ravine on weak branches or, it can be secure and safe from harm. • Are you taking risk with your retirement nest egg and paying fees without guarantees? • Does your advisor have a solid plan in place to protect your nest egg when the market crashes again? If not, you may want to become familiar with Fixed Indexed Annuities and insure your nest egg against loss. It’s your money. You’ve worked for it all your life. The more you know about your options, the better your chances of succeeding with a retirement plan for life.

Contact Susan L. Moore Vault, president of Moore Financial Strategies, at susan@ moorefs.com or (520) 296-4464. She also hosts “Safe Money Strategies” from 6 to 6:30 a.m. Saturdays on KNST 97.1-FM/790-AM.

InsideTucsonBusiness.com

JANUARY 6, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Home foreclosure notices drop 19% in 2011 By Roger Yohem Inside Tucson Business For residential foreclosures in Pima County, it’s cliché time: If you’re going through hell, keep going. The worst is over. There is no education like adversity. Every path has a puddle. “Foreclosures have turned the corner, out of the shadows. There’s real light at the end of the tunnel,” said housing analyst John

THE PULSE:

Strobeck, owner of Bright Future Business Consultants. “Now the question is, how long is the tunnel?” Clearly, the Southern Arizona’s foreclosure crisis is shrinking. Since Notices of Trustees Sales peaked in 2009 at 12,184, the numbers have steadily declined (see table). Year-end data from the Pima County Recorder’s office show that notices ended 2011 at 9,433, down 19 percent from 2010. That’s 2,230 fewer homes in the foreclo-

TUCSON REAL ESTATE

12/26/2011 12/19/2011

Median Price Active Listings New Listings Pending Sales Homes Closed

$120,000 5,512 192 254 179

$128,000 5,549 230 266 175

Source: Long Realty Research Center

Notices of Trustees Sales Pima County Recorder Foreclosure January February March April May June July August September October November December

TOTAL Monthly Avg.

2006 223 192 224 196 204 246 216 267 235 248 299 292 2,842 237

2007 346 276 305 300 396 377 419 503 394 483 540 475 4,814 401

2008 699 598 661 700 720 742 721 814 782 921 675 923 8,956 746

2009 882 1,016 1,154 1,093 991 1,002 1,063 1,130 1,008 948 859 1,038 12,184 1,015

2010 863 982 1,089 985 890 862 1,111 1,067 1,090 1,019 829 876 11,663 972

2011 975 762 948 721 748 693 666 917 797 816 754 636 9,433 786

Pima County Recorder’s Office data

WEEKLY MORTGAGE RATES Program 30 YEAR 15 YEAR 3/1 ARM

Current

Last Week

1/3/2012

One 12 Month 12 Month Year Ago High Low

4.00% 4.25%APR 4.00% 4.25%APR 6.18% 3.50% 3.81%APR 3.50% 3.81% APR 5.94% 3.00% 3.38%APR 3.00% 3.38% APR

6.88% 6.75%

The above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000 Information provided by Randy Hotchkiss, National Certified Mortgage Consultant (CMC) Peoples Mortgage Company, 1610 E. River Road, Suite-118 Tucson, Arizona 85718 • 520-324-000 MB #0115327. Rates are subject to change without notice based upon market conditions.

4.00% 3.38%

sure pipeline during 2011. A trustees’ notice is the first step in the foreclosure process. It notifies owners that their property is in default and scheduled to be sold at public auction. While the housing market grinds through its slow recovery, the key factor remains the sales pace of distressed inventory. For the past five years, foreclosures “have been driving the entire market. The biggest event in 2012 is the end of resets for the three and five-year loans that have caused so much of the problem,” explained Strobeck. “The resets end in the third quarter and after that, the resets are almost zero.” Technically, that should result in fewer foreclosures this year and going forward. Sales of foreclosed homes in Pima County were 6,956 in 2011. This was an increase of 163 homes over 2010, or 2.4 percent, according to the Recorder’s data. The monthly average ended the year at 580 sales, faster than the 566 monthly sales pace in 2010. Because of the housing crash, Strobeck estimated that as many as 15,000 local people who lost their homes are so distraught, they may never buy a home again. “It ruined them. They lost their house and credit. They will no longer be willing to invest 30 years of payments into a mortgage,” he said. “The banks have tightened down, not just until this crisis passes, but probably for the long term. Financing won’t be easy. The market will continue changing for a few more years, watching how the builders react will be interesting.”

Medical plaza default Southwest Professional Plaza, a medical office complex near Tucson Medical Center, has fallen into default and is to be sold at public auction in February. Three separate buildings comprise the plaza at 2122, 2222 and 2224 N. Craycroft Road. The owner is William and Terri Akers LLC of San Jose, Calif., with a $3.35 million original principal balance, according to public records. The complex, built in 1970, totals about 14,600 square feet. The beneficiary is U.S. Bank National Association, in care of C-III Asset Management LLC of Irving, Texas. The trustee’s sale is being handled by Assured Lender Services of Tustin, Calif. The auction is 11:30 a.m., Feb. 29 at Pima County Courts Building, 110 W. Congress.

Rothschild and Pace at economic forum Acting on the awareness that private sector job creation will drive Tucson’s economic recovery, officials from the City of Tucson, Rosemont Copper and Tucson Economic Regional Opportunities will headline a special economic development forum on January 24.

Tucson Mayor Jonathan Rothschild will be the keynote speaker at the annual BOMA/ IREM Economic Forecast Breakfast. He will be joined by Rod Pace, CEO of Rosemont Copper, and Michael Guymon, vice president of regional development for TREO. BOMA is the Building Owners and Managers Association/Greater Tucson. IREM is the Institute of Real Estate Management/ Southern Arizona. The event also features a commercial real estate market update. Speakers and their topics include: Brandon Rogers of Picor (industrial); Brian Barker of Barker Morrisey (development); Scott Soelter of Grubb & Ellis (retail); Art Wadlund of Hendricks & Associates (multi-family); Ike Isaacson of CBRE (office); and Jeannie Nguyen of National Bank of Arizona (finance). Consultant Martin Krawitz will do a sequel to last year’s wildly popular “Anatomy of a Deal” with his “The Risqué Anatomy of a Deal.” The forecast is at the Sheraton Tucson Hotel, 5151 E. Grant Road from 8 a.m. until noon. To register, go online at www.bomagt. org or call (520) 299-4956.

Sales and leases • 1100 E. Broadway LLC purchased two buildings at 1100 and 1120 E. Broadway Blvd. for $400,000 from the Thomas W. Levitt Estate, represented by Brenna Lacey of Volk Company Commercial Real Estate. Ron Zimmerman of Grubb & Ellis represented the buyer. • Gina and Thomas J. Carver purchased a 3,700-square-foot building and parking lot at 1132-1136 E. Broadway Blvd. for $260,000 from the Thomas W. Levitt Estate, represented by Brenna Lacey of Volk Company Commercial Real Estate. Tony Reed of Long Realty represented the buyer. • Broadway Steakburgers LLC leased a 3,309 square foot building at 7120 E. Broadway Blvd. from Circle Plaza Associates LLC/ Circle Plaza Maizlish LLC as T.I.C. LLC, represented by Andy Seleznov of Larsen Baker. The tenant was represented by David Hammack and Rick Borane of Volk Company Commercial Real Estate. • Recon Environmental Inc. leased 2,667 square feet at 2033 E. Grant Road from Parsons, Dooley & Stephan PC, represented by Ian Stuart of CBRE. The tenant was represented by Bruce Suppes of CBRE. • Arizona Communication Experts leased 2,600 square feet at 4575 S. Palo Verde, Suites 319 and 321, from Presson Equity Partners. Rob Glaser, Picor Commercial Real Estate Services, handled the transaction.

E-mail news items for this column to ryohem@azbiz.com. Inside Real Estate & Construction appears weekly.

24 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Up & Comers will start a better 2012 Judging by the way many of us bid good-bye to 2011, we’re expecting this year will be better. Hopefully, it’s not one of those resigned expectations that last year was so bad that 2012 couldn’t possibly be any worse. How do we jumpstart the positive thoughts, attitudes and expectations? As has become the tradition around here at Inside Tucson Business, we’re kicking off the new year with a call for DAVID HATFIELD nominations for our annual recognition of Up & Comers. From your nominations, nine people will be selected. Each will be profiled in a special section in the April 13 issue of Inside Tucson Business and honored at a reception. Helping to select this year’s honorees will be some of the 81 people who’ve been Up & Comers in previous years. This is the 10th year our publication has set out to honor Up & Comers. Dictionary-type definitions for up and comers say things like “promising, continued or future success” and “enterprising” and “showing signs of advancement and ambitious development.” In some ways, it’s difficult to pinpoint exactly what makes an Up & Comer but here are some of the basics: • A person in their 20s, 30s or early 40s. • Committed to making a difference, whether it’s their chosen career paths, overall leadership, in some form of community service, mentoring or doing good in some other way. It really is that nebulous. • It doesn’t hurt if you feel the person you’re nominating hasn’t received the recognition she or he deserves. In a way, that’s the point. • On the other hand, sometimes CEOs and other leaders do things without seeking notoriety. I think we should take notice of that as well. In short, these are people with the enthusiasm, creativity, dedication, courage and leadership skills to step up to the plate. Nominations are being taken online at www.InsideTucsonBusiness.com — look for the Up & Comers icon. Click on it to find the form. We’ve tried to make the form easy to fill out while still giving the judges enough information to make a selection. But as I say every year, please don’t let the form intimidate you. Answer as many questions as possible but don’t fret about those you can’t answer. There’s also nothing wrong with encouraging someone to fill out a nominating form for themselves. I get it, some might be reluctant to do that, but maybe a collaborative effort will work. Our deadline for Up & Comer submissions is 5 p.m. Feb. 22. I hope you’ll look around your circle of colleagues and friends and nominate some deserving person. Especially if you’re still feeling down about things that happened (or didn’t happen) in 2011. This could be just the prescription to get you and the business community in a positive frame of mind for 2012.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237.

EDITORIAL

Jan. 8, 2011, does not define Tucson Some dark occurrences have happened to Tucson in recent generations — serial Charles Schmid known as the Pied Piper of Tucson in the early 1960s and the Pioneer Hotel fire in 1970, among them — and this weekend our city will be the focus of national media attention commemorating the shooting on Jan. 8, 2011. Nothing will compare to the continuing anguish that will be felt by the families and friends of Christina-Taylor Green, 9; retired secretary Dorothy “Dot” Morris, 76; U.S. District Chief Judge John Roll, 63; homemaker Phyllis Schneck, 79; retired construction worker Dorwin Stoddard, 76; and Gabe Zimmerman, 30, the community outreach director for U.S. Rep. Gabrielle Giffords, whose “Congress on Your Corner” constituent event was the scene of the shooting. The weekend will undoubtedly bring back haunting memories for the 13 people who were wounded even as Giffords herself continues rehabilitation and what has already been a truly remarkable recovery. There were also the heroes of the day: Daniel Hernandez, who came to the aid of Giffords doing what he could to stem the bleeding from her head, and Patricia Maisch, Bill Badger, Roger Sulzgeber and Joseph Zamudio who helped subdue the shooter and probably prevent further carnage. There were numerous others, too, including the remarkable work of the first responders and the health professionals at University Medical Center. Numerous commemoration events and d activities are planned throughout this weekend and we expect many Tucsonans will participate in these and events, ents, including our regular church services. There is strength in a community uniting through prayer and other participatory events. Commemorating tragedies can be such a delicate matter. As a rule we’d

prefer commemorative celebrations of good things. On Jan. 16, for instance, this nation will honor the work of civil rights leader Martin Luther King Jr. The holiday on the third Monday in January each year was selected because it’s near his birthday of Jan. 15. While few people who were living at the time will forget the tragedy of his assassination in Memphis, Tenn., on April 4, 1968, the holiday this month provides for a celebration of the work King did in his life. In business there are people who specialize in what’s known as crisis communications. When a tragic event takes place, news media — especially in these days of 24-hour cable TV news channels desperate to fill airtime — can run with storylines over which the people most involved have no control. Testimony to that was the erroneous reporting of Giffords death by such otherwise respected national news organizations including NPR, Reuters, CNN, Fox News and on the websites of the New York Times and ABC News. Our point is that we Tucsonans have no control over what the message to the world will be from this weekend’s reporting of the anniversary. In retrospect we can look back to what led to the shooting and work to recognize and react better to such things as mental health issues mindful of the needs for safety and freedom for the majority over any perceptions of political correctness. But above all else, the events that took place on Jan. 8, 2011, do not define Tucson or its people. We as community need to show that message cannot go out.

InsideTucsonBusiness.com

JANUARY 6, 2012

OPINION BUSINESS INK

Annual Wish List targets collaboration and jobs for 2012 Every new year offers hope for a better tomorrow, so let’s jump straight into 2012. Successful business and political leaders excel at solving problems. So in hopes of making Tucson a better community, I asked a few of them for their 2012 Business Wish List. Now in its third year, the list’s contributors had this to say: “My 2012 wish is for more collaboration between the public and private sectors to support our existing employers and promote initiatives that create new high-wage, quality jobs in our community. For improved education and infrastructure systems, as well as an available skilled workforce to make Pima County more attractive. “More support for clean industries (medical research, bioscience, technology, optics, geo-tourism, solar) while preserving the natural beauty so valued by residents. Finally, I wish the State Legislature would give back our highway funds so we can fix our streets, but I’m not holding my breath.” — Pima County Administrator Chuck Huckelberry “My wish for Tucson is more jobs and economic development. One of the best incentives we can offer to bring and keep jobs here is a great city government: easy to navigate, consistent, responsive and problem-solving. My priorities are land use code reform, improvements in planning and

development services, using new technologies to make our city more efficient, transparent, collaborative and includes a first-rate education system. “We need ROGER YOHEM regulations that protect neighborhoods and the environment, but we can’t afford red tape that doesn’t make sense for anyone. What I want are quality jobs that are compatible with our community, our values and our desert environment.” — Tucson Mayor Jonathan Rothschild “My wish is recognition of the importance of regionalism. The establishment and success of the RTA is due to the citizen leaders who put together the plan by putting aside parochial issues to solve our transportation problems. The result was voter approval, followed by the completion of more than 450 projects and more than 1,800 jobs to date. The focus on regionalism is also reflected in the RTA’s voting structure (one jurisdiction, one vote) which intentionally forces all jurisdictions to come to consensus and provide solutions that serve us all.” — Gary Hayes, Regional Transportation Authority

“My wish is for 10,000 to 15,000 new jobs in 2012. Job growth will go a long way toward repairing the damage that the local economy suffered during the Great Recession.” — Marshall Vest, University of Arizona “Call me Pollyanna, but my wish is for more meaningful collaboration, optimism and drive for solutions. After three years in survival mode with a barrage of negativity, it’s time to look forward and have our actions support and create progress. The business community thrives when we set aside pet issues and focus more broadly on making Tucson the best place to live, work and play.” — Barbi Reuter, Picor Commercial Real Estate Services “We accept the need to diversify our economy and learn to compete with a different value proposition. The future economy will no longer be based on our reaction to growth. We must build a new economy for future generations.” — Joe Snell, Tucson Regional Economic Opportunities “My wish is down to one thing, that the city and county do everything they can to make our city more attractive. It looks awful. It needs a facelift. Our street scenes look horrendous with weeds, too many signs and poor landscaping. Turn our community back to the Jewel of the Desert.” — Hank Amos, Tucson Realty & Trust

“I wish for smaller government, greater self-determination and the “old normal.” I wish everyone who wants a job could count on a regular paycheck and the self-dignity made possible by gainful employment. I wish that free enterprise could spin its economic magic without senseless regulation and delay. I hope that every young person will one day graduate into adult life with a solid educational foundation.” — Mike Varney, Tucson Metro Chamber “MPA wishes for continuing dialogue between each local government and the private sector as we work to create equitable land use policies. Land use is a critical element of economic development so we wish local policies and attitudes reflect this as we work to achieve balance between economic development, environmental sustainability and neighborhood preservation.” — Amber Smith, Metropolitan Pima Alliance “The number one issue is jobs.” — Pete Herder, The Herder Companies

Contact Roger Yohem at (520) 295-4254 or ryohem@azbiz.com. His Business Notebook appears biweekly and weighs in on local political, social and business issues.

SPEAKING OUT

UA is home to one of the nation’s three major poetry centers One of the nation’s three major poetry centers is located on the University of Arizona campus. The public can enjoy the varied volumes of poetry in the non-circulating library. There are also outstanding classes and programs available to anyone who wants to participate. Tucson winter visitor Ruth Walgreen Stephan, who was a novelist, poet and editor, endowed a poetry library at the UA in 1960. Stephan and her mother, Myrtle Walgreen, also provided expansion funds and two buildings on Highland Avenue to house the center. Stephan believed Tucsonans needed to read and appreciate poetry. She saw creative writing as an art form. The UA deserves credit for its support of her concept. Today there are 70,000 books, photos, recordings and broadsides at the Poetry Center, 1508 E. Helen St. It is noteworthy that when the center opened, Arizonan Stewart Udall, who served as Secretary of the Interior in the John F. Kennedy administration, brought well-known poet Robert Frost to participate in the dedication. While Frost was in Tucson, Udall invited him to read his poetry at Kennedy’s inauguration. Over the past 50 years the Poetry Center has

grown to national acclaim, and poets have come here from all over the world to read poems to appreciative audiences. Participants have included three Nobel Prize winners and 50 CAROL WEST Pulitzer Prize-winning poets. Initially, the center’s shoestring budget meant the public barely knew of its existence. It wasn’t unheard of that the Poetry Center’s mail would end up at the UA’s “Poultry Center.” The Highland Avenue property became a “casualty” of the Speedway widening. The Poetry Center moved to smaller quarters on Cherry Avenue. By 1996 the center’s success forced consideration of a capital campaign to build more space for the growing collection and programs. Helen S. Schaefer agreed to head the capital drive. The private sector raised nearly $5 million while the UA provided $1.9 million and the land on Helen Street.

University of Arizona Poetry Center 1508 E. Helen St., at Vine Avenue http://poetry.arizona.edu (520) 626-3765

Les Wallach of Line and Space Architects designed the building after he had conducted a focus group of poets and architects to ascertain how architects could help poets. The Helen S. Schaefer Poetry Center was dedicated in 2000. The new building allowed the poetry collection to be exhibited in one place, and it is now online. This has permitted program expansion and more varied presentations. Cybele Knowles, events coordinator at the center, says the Poetry Center means different things to different people. Some come to the library just to read. Others join book clubs, discussion groups and creative writing workshops. There is also a UA prose series in which authors read their works. These events are often led by graduate students, visiting poets or local authors. To enhance language development and foster communication, the center hosts children’s activities. Instructors incorporate

dance, music, and games to introduce young children to the wonders of poetry. A new program called Family Days encourages families of all ages to participate in center activities one Saturday per month. The Poetry Center introduced a statewide contest for high school students based on the corrido, a Mexican ballad form. Students are invited to submit their own original corridos. Poetry Center Director Gail Browne says the poetry reading series begun in 1963 is still the center’s mainstay; it establishes an appreciation of arts and culture, a center mission. “Love Notes,” a production scheduled for Feb. 14-17, will feature a collaboration with the UA School of Dance and will include poetry, letters, music and dance. The Poetry Center is a “warm and welcoming literary writing center and a hub for inquiry, discussion, and celebration.” Area residents of all ages are invited to browse the library and to participate in the numerous programs.

Contact Carol West at cwwfoster@aol. com. West served on the Tucson City Council from 1999-2007 and was a council aide from 1987-1995.

26 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Setting the record straight on CAP water and the Rosemont mine I’ve attended all of the Forest Service hearings to date about the proposed Rosemont Copper mine. There has been no shortage of mentions about the importance and use of water. No matter what side they are on, everyone has agreed that water is a critical issue but, depending on the speaker, Central Arizona Project (CAP) water is viewed either as a blessing or a curse. Either way, it is still our best source of renewable water. And it is a well-protected source. The CAP board, the Central Arizona Water Conservation District (CAWCD), has not taken a position on Rosemont Copper’s plan of operations, so I write this as an invidual board member. Several of CAP’s strategic objectives will be furthered by the fact that one component of Rosemont’s water management and conservation plan includes importing water through a pipeline to bring and recharge CAP water in the upper Santa Cruz basin. The terminus of the existing CAP canal is at Pima Mine Road and yet the aquifer upstream — in Sahuarita and Green Valley

— is being drawn down considerably by agricultural, residential and other pumping. The additional groundwater required for Rosemont would come from this same area. CAROL ZIMMERMAN CAP has two customers with water allocations south of the terminus and there is a potential groundwater savings facility, none of which can currently receive water because there are no pipes to carry it to them. Some speakers have stated that this will be meaningless because there is limited excess CAP water. While excess water may not be as available as it once was, there definitely is water available. Community Water Company and the Green Valley Water District have a combined allocation of about 5,000 acre-feet annually — this water is of the highest priority and wet water they cannot take now. In addition, CAP must recharge water as

part of our obligations imposed by the Ground Water Replenishment District (CAGRD). Currently the Pima Mine Road Recharge Center is CAP’s most southerly recharge location, unfortunately still a ways downstream from the Sahuarita and Green Valley CAGRD members pumping. The 2010 CAP strategic plan (available at www.cap-az.com) identifies the following strategic issue for CAP. Issue: Hydrological relationship between member pumping and CAGRD replenishment Action Plan: • Investigate feasibility of developing new recharge projects in identified areas of excessive groundwater decline • To extent feasible, replenish in areas of hydrologic impact of groundwater withdrawals Rosemont Copper’s commitment to replenish 105 percent of its water use is admirable in and of itself. But the commitment to go even further by funding a pipeline allowing Community Water Company to bring CAP water into the area of hydrological withdrawal is of great benefit

to the entire upper Santa Cruz basin area. There is much talk that CAP water from the Colorado River could be rationed or dry up all together. The CAP board and staff have put several plans in motion to make sure that if a shortage is declared (and it has not been to date) that our municipal customers will be well protected. We have stored water for a dry day. Please visit our website to read more about these water-banking activities and shortage-sharing agreements. I am committed to making sure that CAP water is available to all of our customers and would question why any elected official in Pima County would not support this extraordinarily positive effort to bring much needed, real, wet water to Sahuarita and Green Valley.

Carol Zimmerman is one of four members from Pima County who were elected in November 2008 to serve six-year terms on the 15-member the Central Arizona Water Conservation District Board of Directors. Her firm, Zimmerman Public Affairs, is also a consultant to Rosemont Copper.

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28 JANUARY 6, 2012

INSIDE TUCSON BUSINESS

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