Inside Tucson Business 01/27/12 by Territorial Newspapers

BUSINESS BOOSTERS Rosemont’s Rod Pace and Mayor Rothschild talk economic opportunities PAGE 6

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JANUARY 27, 2012 • VOL. 21, NO. 34 • $1

Court cuts hotel values

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risis | PA c o d n o c s t’ in o P y k c o R

Westin properties slashed 60 percent Page 3

Sold! Local auctioneer says he’s got the best job Page 10

CCIM to honor more legends

Keith Rosenblum photo

Real estate group to recognize Amos, Kivel and Long Page 19

County says Marana’s sewer costs will increase five fold Patrick McNamara Inside Tucson Business As Town of Marana officials settle into their role as the owners and operators of their very own sewer system, Pima County has begun to cast doubts on how cost-effectively the town can run the facility. In a Jan. 24 memo to the Pima County Board of Supervisors, County Administrator Chuck Huckelberry estimates that it would cost the town more than five times what the county had operated the disputed Marana Wastewater Reclamation Facility for. “Including the interest and debt repayment,” Huckelberry wrote in part, “the total estimated cost for Marana

to operate not only the wastewater reclamation facility, but also the conveyance and collection system, absent any utility billing cost, is approximately $2.6 million per year.” Huckelberry wrote that the county had budgeted $446,000 to operate the facility in the current budget year. Pima County and Marana have battled over the small treatment facility on the north edge of the town since 2007. Following a 2010 court ruling that gave the county continued control of the facility but allowed the town some of the sewer system infrastructure, Marana lobbied state lawmakers for a legislative solution. A resulting bill that passed the Leg-

islature last year allowed Marana to assume ownership of the county owned and run facility because the property lies within town boundaries. Marana took over the facility earlier this month and has to repay the outstanding debt and interest, which totals more than $18 million. Huckelberry estimates the treatment plant’s 1,800 connections would have to pay $122 month in fees versus an average of $34 per month the county charged. The county based its estimates, in part, on the fact that it can spread sewer operating costs throughout the system. For Marana, the goal in acquiring the treatment facility was access to a

renewable water source — namely effluent. Without a renewable supply of water the town’s growth aspirations would be limited by law. Huckleberry estimates that Marana could have purchased 37 times as much water through the Central Arizona Water Conservation District for what it would cost to treat its own wastewater. The county has filed a lawsuit challenging the constitutionality of the law that allowed Marana to take over the treatment facility.

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

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JANUARY 27, 2012

NEWS

Bankruptcy court drops the bar on hotel property values By David Hatfield Inside Tucson Business Barring what those involved say would be a surprising legal ruling in an appeal scheduled for Jan. 30, the stage has been reset on the value of lodging and resort properties in the Tucson region. U.S. Bankruptcy Court Judge Eileen Hollowell on Jan. 18 approved plans for the Westin La Paloma Resort and Spa and a companion property, the Westin Hilton Head Island Resort in South Carolina, to emerge from Chapter 11 bankruptcy that, among other things, valued them together at $92 million. That’s less than 40 percent of the $240.5 million owed on the debt when Tucson-based Transwest Resort Properties put them in bankrtuptcy protection Nov. 17, 2010. Susan Boswell, the Quarles & Brady lawyer who handled the bankruptcy for Transwest, said that despite the devaluation, the lenders who were originally owed the $240.5 million will get their money back from the cash flows of the two resorts over the next 20 years. La Paloma isn’t alone. The six-year-old JW Marriott Starr Pass Resort and Spa, 3800 W. Starr Pass Blvd., appears headed for foreclosure Feb. 2 after going into courtordered receivership last year when developer Signature Properties International defaulted on the mortgage owing $145 million. Negotiations to avert a foreclosure on the 575-room resort have, as of earlier this week, been unsuccessful. To be clear, the issues over ownership doesn’t mean a property is in imminent danger of closing. Quite the contrary in the case of the Westin La Paloma, 3800 E. Sunrise Drive, where general manager Jonathan Litvack can hardly contain his excitement over the

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

Starwood Hotels and Resorts.

exit from bankruptcy even to the point of closing a PowerPoint presentation this week with the rallying cry, “we’re going to take back the hill.” “That’s not to take anything away from the fine job the others are doing but from our point of view, in less than two weeks time we’ve gone from the worst position in the market to the best,” Litvack said. “Two weeks ago, we were still in bankruptcy with an uncertain future and now we’ve got a solid footing with the best future we could hope for.” Southwest Value Partners, a real estate investment company based in San Diego, acquired the La Paloma and Hilton Head properties out of bankruptcy. The company immediately announced it would spend $60 million between the two properties on rennovations and had signed a new 20-year management agreement with Starwood Hotels and Resorts, whose brands include Westin. Southwest Value Partners was co-founded in 1990 by former Tucsonan Robert G. Sarver, who is now managing partner of the NBA Phoenix Suns and chairman and CEO of Western Alliance Bancorporation, a holding company that operates banks in four

UA area targeted for two new hotels Inside Tucson Business Despite the sputtering economy, plans are moving forward on two significant lodging projects — both near the University of Arizona. Two hotel groups are considering a project for the southeast corner of East Second Street and Tyndall Avenue across the street from the Marriott University Park Hotel, according to Tom Warne, who is working with the Marshall Foundation to develop the site.

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A typical room in an Aloft hotel.

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PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAN GIBSON dgibson@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

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.

Giffords steps down; replacements line up Saying she had “more work to do on my recovery before I can again serve in elected office,” Gabrielle Giffords on Wednesday (Jan. 25) officially resigned her seat in the U.S. House of Representatives. Giffords is recovering from being shot through the head on Jan. 8, 2011, when a gunman opened fire at one of her Congress on Your Corner events that killed six and wounded 12 others. “I don’t remember much from that terrible day, but I have never forgotten my constituents, my colleagues or the millions of Americans with whom I share great hopes for this nation,” Giffords said in the letter to House Speaker John Boehner, R-Ohio. Moments later, the House, including Giffords because the resignation didn’t take effect until the end of the day, voted for her final piece of legislation — a bill that would impose tougher penalties on smugglers who use small, low-flying aircraft to avoid radar detection and bring drugs across the Mexican border. The vote was 408-0. Giffords also submitted a letter of resignation to Gov. Jan Brewer, who under Arizona law has until Saturday (Jan. 28) to set the date for a special election to fill out the remainder of the term, which expires in January. A primary election must take place within 80 to 90 days so most likely it will be in April and then a general election follows 50 to 60 days after that, so most likely it would be in June. Democrats had shied away from saying anything about the race until after Giffords had made her decision but Pima County Democratic Party Chairman Jeff Rogers now anticipates there will be “a good half-dozen people who will probably consider” a run. Democratic names that have been prominently suggested are state Reps. Steve Farley and Matt Heinz, state Sen. Paula Aboud and Nan Stockholm Walden, who with her husband own Farmers Investment Co., which owns Green Valley Pecans. On the Republican side, Jesse Kelly, who was the Republican nominee in 2010, filed paperwork Tuesday for the special election. State Sen. Frank Antenori was expected to announce a step toward his candidacy at a meeting today (Jan. 27) before the Green Valley/Sahuarita Republican Club. Dave Sitton, a sports broadcasting and marketing executive, said he hoped to have a decision made this week.

EDITION INDEX Public Notices Profile Inside Media Arts and Culture Meals and Entertainment Briefs People in Action

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Calendar Finance Real Estate & Construction Biz Buzz Editorial Classifieds

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NEWS Marijuana dispensaries could open in summer Medical marijuana dispensaries could be open in Arizona by this summer. Will Humble, director of the Arizona Department of Health Services, posted a blog Wednesday (Jan. 25) saying he expects to start accepting applications in April and it would then take 45 days to review and award up to 125 dispensary licenses statewide. That would mean the dispensaries could be operating as early as July. When voters approved the Arizona Medical Marijuana Act in November 2010, the dispensary application process was set to begin in June 2011. However, the state filed a lawsuit in Arizona Superior Court asking a judge to determine whether state employees complying with the law would violate federal law. The court determined that would not be the case and a subsequent ruling in another case requires the state change its dispensary rules to eliminate certain restrictions that weren’t included in the ballot measure approved by voters.

Unfinished Business: Rocky Point’s natural beauty invaded by sea of speculative, abandoned condos

The only about 300 more Tucsonans were working last month than in December 2010, the total available workforce was 2,600 so the region’s unemployment fell to 7.9 percent, from 8.4 percent a year ago, according to the Arizona Office of Employment and Population Statistics. The unemployment rate deteriorated slightly from 7.6 percent in November but the state’s figures are not seasonally adjusted so year-over-year is more comparable than month-to-month. According to the latest, 38,300 Tucsonans were unemployed last month out of total of 486,300. That compares to 41,200 who were unemployed in December 2010 out of a workforce of 488,900. Statewide, Arizona’s unemployment, which is seasonally adjusted, remained unchanged at 8.7 percent from November to December. It was at 9.2 percent in December 2010. The national unemployment rate declined in December to 8.5 percent, from 8.7 percent in November. State officials said there were some uncharacteristic changes in December, primarily below average monthly job gains in the private sector and above average losses in the government sector. Catergories showing gains included professional and business services, leisure and hospitality and financial. Job losses were in the education and health services categories, both in the public and private sectors.

Keith Rosenblum photo

Shrinking workforce lowers Tucson unemploment to 7.9% Tourism has been hurt by stalled projects

By Keith Rosenblum Inside Tucson Business PUERTO PEÑASCO — You’re the mayor of a coastal city of 35,000 known for its beauty. You have some great times where a lot of building goes on and then some not-so-great times when much of the work grinds to a halt and leaves you with skyscaper skeletons. Parts of your city resemble backdrops for a movie about a nuclear disaster. If you are Alejandro Zepeda Munro, mayor of this city, known to Americans as Rocky Point, you sigh. “I wish I could complete them — or make them all go away,” Zepeda says. “The problem is, these are private projects, with private capital, each one with its own unique set of circumstances and there’s not much a municipal government can do. During the good times, who ever thought about his project coming to a stop?” The two dozen or so buildings in question were to be condominiums for the visitors from the United States with starting sales prices at $175,000. During a rush six years ago, more than 3,000 new units sold for about $250,000. And there have been cases where units sold for $600,000 or more. Some, such as Tessoro, a four-tower project in the Las Conchas subdivision, were new projects. Others, like Las Palo-

mas, were expansions of existing projects. An extreme case: Esmeralda, a luxury complex, ceased work after completing just 25 of 281 planned units. (See related story.) The blight has blemished Rocky Point in a democratic fashion. Building hulks, exposed rebar, empty pools, traffic circles leading nowhere and exposed bedrooms are distributed among luxury resorts along Sandy Beach; in the wharf area known as the Malecón; and at intervals throughout the sprawling Las Conchas subdivison. Ironically, perhaps, the only areas unaffected by unsightly structures are the commercial district and Rocky Point residential neighborhoods, a mile inland, which never made any claim to beauty. The stalled projects haven’t escaped the attention of the Sonora state government in Hermosillo, which has watched the corrosion of its tourism jewel. In a decade, state officials had marveled as sand dunes were pushed around to make way for foundations and then high-rise buildings. Every time a new building went up, a buyer from Arizona, New Mexico, California or Nevada would appear. Some 3,200 condo units were built during a five-year frenzy ending in 2008. For a period, conversations around Tucson and Phoenix dinner tables were about what size condo to buy and the home equity loan that would used to make the down payment. But cognizance and taking action are two different matters. So far, the state government’s role in a solution has been non-

existent. Javier Tapia, general coordinator of the Sonora tourism development commission — the state’s tourism chief — created a task force called the rescate de inmuebles turísticos inconclusos, or unfinished tourism real estate rescue, that has now met with condo builders and city officials. The result: a half-dozen builders have requested state assistance, including use of a private industry expert, to look at how to conclude construction and what to do with a building whose end product, if offered, would be one for which there’s little or no demand. The mantra of Rocky Point, therefore, has become “conversion.” There is consensus that many, if not all, of the buildings are going to have uses other than their original purpose. “The key is figuring out which of these projects can be converted to something that’s in demand today or in the shortterm,” said Zepeda, the mayor, who was recently in Arizona visiting assisted-living facilities. “We think that these building shells, or floor-plans, can be converted into something useful in the short-term. The city is open to any suggestions whatsoever.” Health care facilities for aging Americans? Time-shares properties similar to those offered, successfully, down the road at Mayan Palace resorts? It is only with a touch of irony that some Sonorans propose the state, which is short on beds for an in-

InsideTucsonBusiness.com

creased prison population, should examine high-rise penitentiaries. What makes the case of Rocky Point so intriguing is just how much of a hybrid it is. Whereas other tourist regions have five or 10 hotel rooms for every condo, Rocky Point is the reverse, with one hotel room for every five condos. Cancun on Mexico’s east coast has 28,000 hotel rooms and 9,000 units of condos or time-shares. At Honolulu’s Waikiki Beach there are 32,000 hotel rooms and 3,300 condos. In some places, governments are putting the brakes on allowing too many condos. In Clearwater, Fla., authorities have imposed limits on developers’ plans to convert hotel rooms into condos. In Rocky Point the sum total of hotel

JANUARY 27, 2012

rooms barely reaches 700. None of them are part of brands that would be widely recognized by Americans. Business for Rocky Point hotels has generally been good in recent months but not without issues. Tucson-based NCH Rocky Point LLC, operator of the largest hotel in the city, the 203-room Peñasco del Sol, is in the midst of U.S. Chapter 11 bankruptcy procedings. As for the people who created the Rocky Point business model favoring condos over hotel rooms? They are among us and can be identified by asking a single question: Who in Tucson and Phoenix would not own a beach front condo? What made Rocky Point a condo city instead of a hotel city has more to do with fi-

nancing than tourism trends. Essentially, developers collected 30 percent down on a condo — often money from Americans taken out on second mortgages — instead of using a construction loan. As a result, there was more money in short-term construction projects than in building hotels which have longer payback periods. “It was easy to ask for $50,000 to $80,000 upfront and proceed from there,” said Oscar Palacio, whose family runs the Playa Bonita and 91-room Laos Mar. “Every case is slightly different, involving different investors, different banks and different sales agreements, but what they have in common is they were speculative ventures predicated on the continuing strength of the market.”

Opulence of virtual Rocky Point condos belies their absence in real world Inside Tucson Business This is a partial list of condominium projects announced for Rocky Point and in varying stages of completion. Included are websites, along with an asterisk on websites that may not be up to date. Some developments never had a website but were listed at third-party sites. • Sonoran Sky www.sonoran-resorts.com • Puerta Privada www.puertaprivada.com • Las Palomas www.lpsgc.com www.lpresales.com • Diamond Village www.inttelec.com/diamond/ • The Oasis www.sbrrealty.com • Costa Diamante www.costadiamante.com • Casa Blanca Golf Villas www.casablancagolfvillas.com • Princessa de Penasco www.princesacondo.com • Sonoran Spa www.sonoran-resorts.com www.sonoranresales.com • Sonoran Sea www.sonoranresales.com www.sonoran-resorts.com • Arcropolis www.visitrockypoint.com/ acropolis-mediterranea-village • Las Palmas www.laspalmas-mex.com • Bella Sirena www.bellasirena.com • Bellaria www.bellariaresorts.com (*) • Sonoran Sun www.sonoran-sun-resort.com www.sonoranresales.com

• Esmeralda www.EsmeraldaResort.net www.esmeraldaresortmx.com • Laguna del Mar www.lagunadelmar.com • Laguna Shores www.lagunashoresgcc.com • Harbor View Yacht Club www.MajesticRockyPoint.com (*) • Solace Tower www.solacetower.com (*) • Los Corales www.loscoralesmexico.com (*) • Dos Reyes Condos www.DosReyesCondos.com (*) • La Perla del Mar www.laperladelmarinfo.com (*) • Marazul www.marazul.com.mx (*) • Marbella www.condosmarbella.com (*) • Corona del Mar• Mision del Mar www.misiondelmar.com (*) • Corona del Sol www.coronadelsol-rp.com (*) • Linda Vista www.lindavistarp.com (*) • Caracoles Homes www.caracoleshomes.com • Village In Las Conchas www.thevillageinlasconchas.com (*) • Ballena Estates www.ballenaestates.com • Tessoro www.tessoro.com.mx • Pointe de Las Conchas www.thepointemex.com (*) • Villa Cortez www.VillaCortez.com • Sunset Village www.oursunsetvillage.com (*) • Plaza Meli del Sol www.MajesticRockyPoint.com (*) • Palace On The Sea www.palaceonthesea.com

• La Bella Vita www.la-bellavita.com • Playa Azul www.playaazul.com.mx • Riveria Real www.rivierareal.com (*) • Gila Towers www.gilatowers.com (*) • Luna Blanca www.lunab.com • Encanto www.encantoliving.com • Luna Delia http://discoverdelia.com • Mayan Lakes www.mayanlakes.com • Central Park • Las Glorias www.lasgloriasresidential.com (*) • Providencia www.MyProvidencia.com (*) • Las Gardenias www.lasgardeniasrockypoint.com (*) • Los Claveles www.lasgardeniasrockypoint.com (*) • Residential Mariposa www.MajesticRockyPoint.com (*) • Mariposa Gardens www.MajesticRockyPoint.com (*) • Las Bugambilias Res www.MajesticRockyPoint.com (*) • Torre Mirador I www.cbrockypoint.com • Las Ramblas www.cbrockypoint.com • Casa de Los Milagros www.cbrockypoint.com • Punta Laja www.cbrockypoint.com • San Jorge Privada www.SanJorgePrivada.com (*) • Las Fuentes del Mar www.lasfuentesdelmar.com (*) • Bella Mar de Cortes www.bellamardecortes.com (*)

This Week’s

Good News Sprucing up You might have noticed some of the gateway routes into the Tucson region are looking a bit spruced up these days. In anticipation of the gem and mineral shows starting next week and the rodeo and the Accenture Match Play Championship later in February, the City of Tucson has had contract crews, including Groundskeeper and Department of Corrections workers, cleaning up Oracle Road between Grant and Drachman, Tucson Boulevard coming out of Tucson International Airport, Benson Highway, Irvington Road and Campbell Avenue. And the plan is to have monitors check the roads through the month of February just in case any need more sprucing up. No doubt it will make for a lot of good first impressions for people visiting in the coming weeks.

The Tucson

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

Speak up now Surprise, surprise. We’re just now finding out that a whole lot of events that have brought people to downtown Tucson in recent years are either going to have to move or stop happening because they are no longer compatible with the modern streetcar that’s about to begin construction. Another thing — and this is no surprise if you follow standard operating procedure for Regional Transportation Authority projects — once construction of the project is completed nobody can come back to dig it up to move utlities for five years. That means no moving electric, cable, phone, gas, sewer or water lines. So any business along the route that thinks it might need a new connection to any utility better say so now or forever hold your peace, as they say at weddings.

Mayor’s overloaded email Based on the number of emails he’s getting, Tucson Mayor Jonathan Rothschild is riding a wave of popularity since taking office nearly two months ago. One of the main reasons is his willingness to face a daunting list of issues straight on. He gives the impression he’s up to the challenge, confidently saying “those are my problems, not yours.” Clearly, the personable Rothschild welcomes input and feedback from residents. At last count, he’s getting more than 400 emails a day. Depending on the issue and his available time, he tries to reply personally to as many as he can.

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INSIDE TUCSON BUSINESS

NEWS Public notices of business bankruptcies, foreclosures and liens filed in Tucson or Pima County and selected filings in Phoenix. Addresses are Tucson unless otherwise noted.

BANKRUPTCIES Chapter 11 Business reorganization Jesus Alfredo Leyva and Ana Daniela Perez, also known as Ana D. Perez and Ana Perez, 5255 W. Oasis Road. Principal: Jesus Alfredo Leyva and Ana Daniela Perez, joint debtors. Estimated assets: More than $500,000 to $1 million. Estimated liabilities: More than $500,000 to $1 million. Largest creditor: Not filed. Case No. 120820 filed Jan. 17. Law firm: Eric Slocum Sparks Arizona Wash Systems Inc. doing business as Metro Car Wash, 3050 N. Oracle Road. Principal: Sean Storer, vice president/director. Assets: $766,725.00. Liabilities: $1,208,117.25. Largest creditor: Commerce Bank of Arizona, $874,979.00. Case No. 12-1225 filed Jan. 23. Law firm: McEvoy Daniels & Darcy

FORECLOSURE NOTICES Aquimuri Equestrian Center LLC 4900 N. Craycroft Road 85718 Tax parcel: 109-10-013C6 Original Principal: $843,750.00 Beneﬁciary: New York Community Bank as assignee of Desert Hills Bank, Scottsdale Auction time and date: 10 a.m., April 9, 2012 Trustee: Teresa H. Foster, Brier Irish Hubbard & Erhart, 2400 E. Arizona Biltmore Circle, Suite 1300, Phoenix Piedras Unlimited LLC 11407 N. Casa Grande Highway, Marana 85653 Tax parcel: 216-13-0670 Original Principal: $953,000.00 Beneﬁciary: JP Morgan Chase Bank, Phoenix Auction time and date: 11 a.m., April 16, 2012 Trustee: Jeffrey Messing, Poli & Ball, 2999 N. 44th St., Suite 500, Phoenix

LIENS Federal tax liens GCB Medical LLC and Gary Clifford Butler, 2746 W. Sandbrook Lane. Amount owed: $2,061.02. Iorio Inc., 3642 S. Prism Sky Drive. Amount owed: $5,300.94. Rita’s House Wranglers and Linda Doolittle, 2525 N. Orchard Ave. #2. Amount owed: $7,689.69. Gourmet of China and TFC Enterprises Inc., 3930 E. Coronado Drive. Amount owed: $3,230.31. Sushi Garden and Chae Su Kim, 15 N. Alvernon Way. Amount owed: $16,094.84. Garcia Metal Products Inc., 4201 S. Randolph Ave. Amounts owed: $29,413.96 and $63,384.99. Nail Trix LLC and Tran Yen Thu, 4679 E. Via Azure. Amount owed: $39,250.10. Care Giver Connection of Arizona LLC and John C. Rambow and Dana A. Rambow, 698 E. Wetmore Road, Suite 210. Amount owed: $336,751.59. Ace Appliance Repair Service and William C. White, 5027 E. Julia St. Amount owed: $9,242.05. KPI Inc., 5020 N. Gerhart Road. Amount owed: $65,965.62. Better Bodies Personal Training, 7285 E. Tanque Verde Road. Amount owed: $159,776.87. ACH Pension Consultants Inc., 5626 N. Pontatoc Road. Amount owed: $12,085.28. Family Air LLC and James Beard, 2021 E. 12th St. Amount owed: $1,025.62. Massengale Design Group Inc., 9245 E. Wrightstown Road. Amount owed: $15,319.98. Arizona On-Line Plumbing Inc., 2200 N. Wilmot Road, Suite A. Amount owed: $6,328.08. Advanced Solution Providers and Patricia Terry, 7301 E. 22nd St. Amount owed: $28,408.70. Youngblood Electric and Youngblood Family Inc., 7021 E. Kingston Drive. Amount owed: $10,738.61. Casa Molina and Casa Molina Inc., 6225 E. Speedway. Amount owed: $5,414.14. Means Design & Building LLC, 695 W. Roller Coaster Road. Amount owed: $6,129.43. Strategic Space Development Inc., 9121 E. Tanque Verde Road, Suite 105. Amount owed: $82,196.64. Yokohama Rice Bowl and Andrew J. Weber, 5204 E. Speedway. Amount owed: $14,474.26. Floors Image Inc., 1761 N. Ranch Drive. Amount owed: $20,736.33. Elite Business Installations LLC and Hector Hernandez, 8911 N. Veridian Drive, Marana. Amount owed: $1,672.25. Dimension 3 18 LLC and Nancy C. Noland, 9281 N. Sea Otter Place. Amount owed: $103,809.15.

Southwest Cars & Trucks Inc., 8340 N. Thornydale Road 110-323. Amount owed: $16,774.37. Blue Agave Landscape Design LLC and Dean A. Knote, 336 E. Fort Lowell Road, Suite 102. Amount owed: $1,011.60. Champion Recovery of Arizona and Joseph Sean Bowman, 5170 N. La Cholla Blvd. Amount owed: $1,497.24. Foothills Karate Studio Ltd LLC, 6781 N. Thornydale Road, Suite 219, Marana. Amount owed: $2,074.06. All Safe of Tucson and Conga LLC, 6700 N. Oracle Road, Suite 501. Amount owed: $5,554.00. Maya’s Market and Ellhan Inc., 7020 E. Broadway, Suite 100. Amount owed: $12,607.43. Desert Dust Inc., 8651 E. 28th Place. Amount owed: $14,247.82. Puff & Stuff Inc., 4235 E. Speedway. Amount owed: $26,210.39. All That Vending and Norris Williams, 1664 E. Calle Grandiosa. Amount owed: $16,963.26. Ticico LLC and Cindy Cox, PO Box 90244, 85752 (2640 E. Ganley Road #100). Amount owed: $122,370.17. Rosati’s of Tucson Inc., 8814 E. Tanque Verde Road. Amount owed: $63,094.98. Cavalier Express LLC and Scott G. Miller, 16121 S. Delgado Road, Sahuarita. Amount owed: $3,091.94. Under Budget Cabinet & Counter Installations LLC and Ramon Francisco Moreno, 1501 E. 17th St. Amount owed: $64,731.12. Western International Aviation Inc., 5951 S. Wilmot Road. Amount owed: $49,006.17. West Ajo Contracting Inc., 34 E. Lincoln St. Amount owed: $71,105.61. GRS Landscape Architects Inc., 5151 N. Oracle Road, Suite 206. Amount owed: $5,930.84. Lloyds of Benson Auto Repair & Towing Inc., 1650 W. Sunset Road. Amount owed: $11,829.97. Law Ofﬁce Lenore Tsakanikas PLLC and Lenore Tsakanikas, 239 N. Church Ave., Suite 101. Amount owed: $21,273.13. Caring Hands Corner Luxury Adult Care Home Inc., 4644 E. San Carlos Place. Amount owed: $2,493.35. Hardy Rooﬁng and James Norman Hardy, 2862 N. Sparkman Blvd. Amount owed: $1,087.16.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Alcon Pools LLC, 11679 E. Tanque Verde Road. Amount owed: $5,583.23. Chalk Enterprises Inc., 3138 E. President St. Amount owed: $23,988.52. AWOL Industrial Supply LLC, 6420 E. Broadway, Suite A200. Amount owed: $1,745.98. J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $2,782.40. Keys LLC, 445 W. Wetmore Road. Amount owed: $10,425.91.

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

Seneca Architectural Products against Tucson Greyhound Park Inc. Amount owed: $4,751.29. TDBC against Inn Suites. Amount owed: $35,000.00. TDBC against Four Leaf Construction. Amount owed: $35,000.00. Ace Asphalt of Arizona Inc. against First Evangelical Free Church. Amount owed: $20,000.00. Haugebak Construction Co. Inc. against Smith’s Food & Drug Centers Inc. (S. Rancho Sahuarita). Amount owed: $10,960.00. Haugebak Construction Co. Inc. against Smith’s Food & Drug Centers Inc. (N. Thornydale Road). Amount owed: $1,119.96. Haugebak Construction Co. Inc. against Smith’s Food & Drug Centers Inc. (W. Ina Road). Amount owed: $10,960.00. Cemex Construction Materials South LLC against Charter School Fund. Amount owed: $2,200.59. Ascent Aviation Services Corp. against Sundowner. Amount owed: $19,608.59. Day Break Electric Inc. against Tortolita Presbyterian Church, Presbyterian Church USA. Amount owed: $3,030.50.

Mayor says reforming city’s land use code is a top priority By Roger Yohem Inside Tucson Business

its proposed mine in the Santa Rita Mountains “is to use new technology to develop a modern 21st Century mine.” “So how do we do that? The most important thing we heard was water, water, water. How can we minimize water use? How can we keep the water clean? Where is it going to come from?” he said. “So from the start, we decided to be net-neutral on water. We’ve designed all our processes to minimize water use.” Pace said the company already has recharged 45,000 acre feet of water into the aquifer “before we even start mining.” He described the site about 30 miles southeast of Tucson as a “world-class depos-

Clearly, he’s up to the task. Tucson Mayor Jonathan Rothschild has an opportunity to help reform a major city regulation to make it more business friendly. “The land use code has been under study, under review for the last three years. When I ran for office, I said that’s just crazy, let’s get it done,” said Rothschild, who became mayor on Dec. 5. Since that time, Rothschild has made the land use code “a top priority.” That was welcome news to 125 attendees at Tuesday’s (Jan. 24) IREM/BOMA Economic Forecast. IREM is the Institute of Real Estate Management. BOMA is the Building Owners and Managers Association. In March, city staff will provide the mayor and city council with a status report. Rothschild would like to see final adoption by mid-summer, ending a lengthy, controversial issue. “The real problem is there are so many contradictory sections in it. It’s not a user-friendly document. Its volumes long Tucson Mayor Jonathan Rothschild says three years to revise where it should be a vol- the city’s land use code “is crazy.” ume at the most,” he said. The code has a long reputation as being it” with a mining history dating back to the an anti-business regulation, not only with 1800s. At that time, 350 people lived there. “They were chasing the high-grade copdevelopers and builders, but with individual businesses as well. Stakeholders such as per. They had a smelter on-site and were the Metropolitan Pima Alliance (MPA) have shipping it out by horse and buggy,” said Pace. been working with city officials for years. For economic impact, the construction “It’s cumbersome with lots of requirements. Credit the mayor for seeing that value of the mine is $1 billion. Rosemont many of those requirements are inconsis- Copper plans to hire a general construction tent, not compatible throughout,” said Am- manager to award bids in a series of packaged work. Interested, qualified companies ber Smith, executive director of MPA. Another business-friendly issue Roth- are urged to pre-qualify online at rosemontschild has in his sights is the processing of copper.com . “We are committed to using Arizona compermits by Development Services. The city processes 88 percent of permits within 20 panies where we can. We’re lucky, because days. Permits that languish beyond 21 days in this area, there is a tremendous amount of talent in the mining industry. We think are a concern. “Where we’ve failed as a city is if you’re we can use almost all Arizona companies to not within those 20 days. If you’re not an build it,” he said. “That’s going to put a lot of local people to easy case, you could be lost in the ozone. Everyone in this room has had that experi- work, about 1,500 workers for a two-year peence,” he said. “So we’re going to address riod,” Pace said. “We know a lot of them are what happens after 20 days, to assure that already here, maybe from the construction business, who can transition to help build process gets moved along.” Rod Pace, CEO of Rosemont Copper, the facilities.” joined Rothschild as a keynote speaker at the IREM/BOMA forecast. Pace emphaContact reporter Roger Yohem at ryohem@ sized his company’s objective in opening azbiz.com or (520) 295-4254.

Otis Blank photo

PUBLIC NOTICES

InsideTucsonBusiness.com

JANUARY 27, 2012

WOMEN IN BUSINESS

Find out what your money personality is Ladies, did you ever go to a sleepover or slumber party when you were a teenager? Do you remember the quizzes in magazines like Tiger Beat? I remember the fun I had taking the quizzes to see who my ideal date should be. We would laugh all night but the quiz usually said something about our personalities at the time. Maybe we would even found that perfect date because we learned something about ourselves. PAM HOPMAN What if you could have the same kind of fun and at the same time learn some actionable insights about yourself and your relationship, not to a dream date, but money? With a short, 14 question quiz you will be on the path to create goals that better suit your nature. If your goals are more aligned with how you operate and are wired, won’t they be easier to achieve? We are all wired in a particular way about money. It’s important to understand which “personality” is making your financial choices. Is it “the Champ,” “the Funster,” “the Tortoise,” “the Chessmaster” or “the Whirlybird”? Do you know how you are wired? Why is it important to know? Money is one of those topics that people are a bit crazy about. Whether you hate money and see it as evil or you seek money and see it as a symbol of success, knowing your money personality is powerful. The impact money has on your relationships is equally significant to its effect on your business. Money discord is one of the leading causes of divorce. Do you and your partner ever disagree about how money is spent or saved? Knowing both your money personality and your partner’s money personality can lead to smoother sailing this year. Here is a short description of each of the five personalities: • The Champ: It is all about winning the game and collecting the prize. Money is a tool to make more money. The Champ prefers to be the first and tends to be on the cutting edge. “Money was never a big motivation for me except as a way to keep score. The real excitement is playing the game.” — Real estate developer Donald Trump. • The Funster: Money is a tool to have

fun with. Live for today because tomorrow the bills are due. The Funster is all about instant gratification. The Funster loves the emotional high of spending money but later suffers with the guilt of spending more than they could afford. They may try budgeting but it just doesn’t stick. “My problem lies in reconciling my gross habits with my net income.” — Actor Errol Flynn. • The Tortoise: Is always saving money and saving more money than anyone else. They are slow to choose and slow to change. It was a tortoise personality that invented the budget. Their lifestyle doesn’t change no matter how much money they have. “The art of living easily as to money is to pitch your scale of living one degree below your means.” — 19th century English dramatist Sir Henry Taylor. • The Chessmaster: When it comes to dealing with money, they can do a better job than anyone else. If the Tortoise created the budget, the Chessmaster created the spreadsheet to keep track of it. Always looking for the perfect investment with time-proven results. Agonizingly slow to decide about anything. “We don’t have a trillion dollar debt because we taxed too much; we have a trillion dollar debt because we spent too much.” — President Ronald Reagan • The Whirlybird: Too busy with anything else to pay attention to finances. The Whirlybird does not keep track of their bank accounts nor do they open their statements. They may be months behind on paying bills, not due to a lack of money but because they won’t take the time to do it. Paying bills or budgeting is boring. “A man has $100 and you leave him with $2, that’s subtraction.” — actress Mae West. You have some of all these personalities in your money personality, but one or two are more dominant. Getting a handle on them will help you have a financially successful 2012. Contact me to take the quiz and learn how to overcome or bypass the pitfalls of your money personality.

Contact Pam Hopman, president and founder of The Hopman Group and PGH Advisors, at pam@thehopmangroup.com or (520) 326-1625. The company’s website is www.thehopmangroup.com. Hopman is a member of the Greater Tucson chapter of the National Association of Women Business Owners (NAWBO), whose members contribute this monthly column.

24/7

GOOD BUSINESS

Your Safety Our Priority For your safety, it’s important that everyone in your household know how to recognize and respond to a natural gas pipeline leak.

Smell

If you smell an odor similar to rotten eggs. A leak may be present even if the odor is momentary or slight.

Hear

If you hear a hissing or roaring sound coming from the ground or above-ground pipeline.

See

If you see water or dirt blowing into the air, or discolored vegetation surrounding a pipeline.

Leave the vicinity immediately and don’t use an automated door. From a safe place, call Southwest Gas at 1-800-722-4277 and 911 immediately, day or night. Don’t turn off or on any electric switches, thermostats, or appliance controls, or start or stop an engine— or do anything that might cause a spark. Don’t light matches or lighters.

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8 JANUARY 27, 2012

INSIDE TUCSON BUSINESS

SOCIAL MEDIA SOCIAL MEDIA IN THE WORKPLACE

Employers, beware of restrictive policies on social media As a business owner, can you prohibit your employees from engaging in disrespectful conduct toward others or making disparaging comments about the company on the Internet or in other forms of communication? How about prohibiting your employees from posting pictures of themselves in a company t-shirt or using the company logo? Employers who do, may be subject to a charge that they are violating the National Labor Relations Act (NLRA). Recently, the Office of the General Counsel for the National Labor Relations Board issued a report detailing the outcome of the board’s investigation into 14 social media cases providing guidance about what conduct, including social media conduct, employers may prohibit without running afoul of the NLRA. The NLRA applies to most employers, not just those with unions. But it doesn’t apply to all employees. Certain supervisory and management level employees, as well as independent contractors, are not considered to be “employees” under the NLRA. The NLRA prohibits employers from interfering with, restraining or coercing employees in the exercise of protected concerted activity for mutual aid or protection through the employer’s rules and policies. According to the National Labor Relations Board, an employer violates the NLRA by maintaining a work rule that would “reasonably tend to chill employees in the exercise of their Section 7 rights.” A rule is unlawful if it explicitly restricts protected activities. If the rule does not explicitly restrict protected

activities, it may still be unlawful if: 1. employees would reasonably construe the language to prohibit Section 7 activity, 2. the rule was promulgated in response to union activity, or 3. the rule has been applied to restrict the exercise of Section 7 rights. Applying this framework, the board found policies or SHERRY DOWNER workplace rules to be unlawful: • Prohibiting employees from making disrespectful, disparaging or inappropriate comments when discussing the company or the employee’s superiors, coworkers, and/or competitors in any form of communication; prohibiting the use of language or action that was inappropriate or of a general offensive nature, and rude or discourteous behavior to a client or coworker. The board takes the position that these types of rules are overly broad and could reasonably be interpreted to prohibit the protected criticism or discussion of the employer’s labor policies, treatment of employees, and terms and conditions of employment. • Prohibiting employees from using any social media that may: violate, compromise, or disregard the rights and reasonable expectations to privacy or confidentiality of any person or entity; constitute embarrassment, harassment or defamation of the company or its employees, officers,

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board members, representatives or staff members; lack truthfulness or might damage the reputation or goodwill of the company, its staff or employees; and disclose personal information regarding coworkers, company clients, etc., without their consent. The board believes these are overly broad rules that could be interpreted as prohibiting protected employee discussion of wages and other terms and conditions of employment. • Policy prohibiting employees from using the company name, address, or other information on their social networking personal profiles. According to the board, prohibiting employees from using the company logo on their personal profiles is particularly harmful to Section 7 rights because of the function the personal profile page serves in enabling employees to find and communicate with other coworkers. • Prohibiting the posting of pictures in any media (including on social media) that depicts the company, its uniform, logo or equipment. The board found this rule unlawfully broad because an employee could not post a picture of employees carrying a picket sign depicting the company’s name, or wear a t-shirt portraying the company’s logo in connection with a protest involving the terms and conditions of employment. To avoid violating the NLRA, the board suggested providing definitions of

broad terms or listing examples of conduct or communications that would be prohibited under the policy. However, limiting a policy by using examples, or more specific language, risks narrowing it so much the policy no longer applies to unanticipated factual situations. Employers are well advised to review and update their work rules and policies in light of the board’s view of such policies under the NLRA.

Contact Sherry Downer, an attorney with Fennemore Craig practicing in the areas of employment and labor law, commercial and business litigation, and professional liability, at sdowner@fclaw.com. Social Media in the Workplace is a monthly feature of Inside Tucson Business.

InsideTucsonBusiness.com

JANUARY 27, 2012

INSIDE TRAVEL

Tucson airport officials cross fingers for 3.8% passenger growth this year By David Hatfield Inside Tucson Business The number of passengers going through Tucson International Airport in 2011 was down 2.2 percent from 2010 to just under 3.7 million but, with the help of a renewed cooperative effort with local businesses and the hospitality industry and a new branding campaign, CEO Bonnie Allin cautiously predicted this week that traffic could rebound by about 3.8 percent in 2012 to at least 3.8 million passengers. “The wild card here remains the volatility of fuel prices, which represents 30 to 35 percent of an airline’s costs and are a major factor in their service decisions,” Allin told members of the Tucson Airport Authority at their annual meeting Monday (Jan. 23) at the Arizona Inn. “We remain cautiously optimistic as we work to put the worst of the economic turmoil behind us and move toward growth.” Looking back over a decade’s worth of airport passenger numbers, the most recent years resemble what economists would call a “dead cat bounce” — a drop to the bottom, followed by a small recovery and then another drop. After four years of passenger totals topping 4 million from 2005 through 2008, Tucson International’s passenger numbers plummeted in 2009 to just over 3.6 million then topped 3.7 million in 2010 before dropping again last year. The biggest monthly decline in 2011 was March, which was down 7.2 percent. March is typically the airport’s busiest month of the year and it was last year but, aside from 2009, the last time the airport had fewer passengers in March was 1995. The loss of Major League Baseball Spring Training obviously contributed to the March decline. On the positive side, airlines are already scheduling more seat capacity at Tucson International. This March, for example, available seat capacity is up 3.4 percent from 2011 to an average of 6,839 seats per day, according to OAG - Official Airline Guide. “Community support is paramount to our service expansion efforts,” Allin said. Outgoing airport authority chairman Rubin Salter cited Inside Tucson Business’ annual airfare study in November that for the first time in five years found the average airfare was lower, by $1, from Tucson International than Phoenix Sky Harbor to the 12 most heavily traveled destinations the two airports have in common. Allin said the airport continues to fight a misperception about airfares and service. She noted Southwest Airlines’ new service to Baltimore starting Feb. 12 that not only opens up non-stop service to an airport close to the nation’s capitol, it makes for one-stop connections to numerous destinations in the East. She said the airport has a new outreach

effort to create an ongoing dialogue and develop data that should demonstrate demand for more air service from Tucson. And on the marketing front, the airport has launched a new branding effort, “It’s the way to go,” developed through research and emphasizing the airport’s quality facility, customer service, and a convenient, relaxed experience for travelers. Other year-end statistics from the airport authority: • Southwest carried the most passengers, more than 1.2 million, or 34 percent of the airport’s total for the year. • American grew the most, up 6.4 percent to 838,611. The growth came with the addition in April of American Eagle flights to Los Angeles International Airport. American continues to be Tucson’s second busiest airline. • United lost the most passengers, down 16 percent, to a year’s total of 334,553. The cuts were due to reductions in flights and United’s use of smaller regional jets. • Total aircraft operations, which includes airlines, air taxis, military and general aviation — were down 6.3 percent to 154,286. The only category that was up from 2010 were airlines operations, up by 231 to 35,665, again due to airlines using more smaller regional jets. • Freight was down 14 percent to 26,619 tons.

Tucson service notes • Alaska Airlines has added a second round-trip non-stop flight to Seattle on Sundays, Mondays, Thursdays and Fridays. The additional flights continue through the first week of March and then, effective March 10, the second flight will operate Saturdays only through April 7. • Members of US Airways Divident Miles frequent flyer program have more opportunities to upgrade on flights from Tucson International now that the airline this month finished installing first class sections on 110 of its regional jets. Depending on the model of aircraft, first class has either eight or nine seats configured with two seats on one side of the aisle and one on the other. Under the current schedule, the reconfigured planes are being used on seven of US Airways’ 10 daily departures from Tucson (another flight is on a full-sized 132-seat Airbus A319 with 12 first-class seats and the other two flights are on the smallest, 50-passenger, regional jets that have only coach seats). • Effective April 1, United Express is dropping one of its two daily round-trip flights to San Francisco. If the scheduling is in keeping with the last two years, United will reinstate the second daily flight after Tucson’s summer doldrums. The one daily flight that will continue is an early-morning departure from Tucson and nighttime

return timed to connect with United’s flights to and from Pacific rim destinations.

American’s bankruptcy Significant decisions could start coming today in American Airlines’ bankruptcy procedings. Much of what’s on the docket has to do with procedural matters but some of the more pertinent items for travelers concern American’s request to reject leases on numerous aircraft. At the same time the airlne is asking for a 30-day extension to file a comprehensive schedule of assets and other financial matters. According to research done by Deutsche Bank, American has only determined what it wants to do — keep some and get rid of others — with about one-third of the fleet of 667 aircraft it had when it filed for bankruptcy protection on Nov. 29. The court hearing takes place before U.S. Bankruptcy Judge Sean H. Lane in New York.

Flying SkyWest Regardless of what name is painted on the side of the plane, the chances of

getting on an airliner at Tucson International operated by SkyWest Airlines has grown. Under a new deal, SkyWest is now also flying US Airways Express flights on 50-passenger Bombardier CRJ200 regional jets. The planes replace flights that had been operated by Mesa Airlines. Under the current schedule, SkyWest is flying two daily US Airways Express flights between Tucson and Phoenix Sky Harbor. SkyWest also operates United Express with five round-trips a day to Denver, four to Los Angeles International, three to Houston Intercontinental and two to San Francisco. And SkyWest flies as Delta Connection three times a day to Salt Lake City. That makes up 30 percent of what the Tucson Airport Authority says are 63 daily departures going out of the airport each day. Tucson is an important city in the overall scheme of things for SkyWest. The airline says it has more than 145 employees in Tucson. For 10 years now, SkyWest has had a maintenance facility at Tucson International and uses Tucson as a crew domicile, with 30 crews, usually made up of two pilots and a flight attendant, based here.

TUCSON INTERNATIONAL AIRPORT 2011 PASSENGER STATISTICS Passengers going through Tucson International Airport were down 2.2 percent in 2011 from 2010. The numbers below show each airlines’ passenger totals and market share for 2011 compared with 2010.

Airline

2011 Passengers Market

2010 Change Passengers Market Passengers %

Nonstop destinations

Southwest

1,229,453

33.6%

1,234,922 33.0%

-5,469

-0.4%

Albuquerque, Baltimore (effective Feb. 12), Chicago Midway, Denver, Las Vegas, Los Angeles, San Diego

American

838,611

22.9%

788,426 21.1%

+50,185

+6.4%

Chicago O’Hare, Dallas-Fort Worth, Los Angeles

US Airways

431,491

11.8%

435,926 11.7%

-4,435

-1.0%

398,562

10.9%

429,053 11.5%

-30,491

-7.1%

9.2%

398,700 10.7%

-64,147

-16.1%

Phoenix

Delta

Atlanta, Minneapolis-St. Paul, Salt Lake City

United

334,553

Denver, Houston Intercontinental, Los Angeles, San Francisco

Continental

168,587

4.6%

186,247

5.0%

-17,660

-9.5%

150,482

4.1%

158,506

4.2%

-8,024

-5.1%

106,480

2.9%

100,990

2.7%

+5,490

+5.4%

7,906

0.2%

-7,906

Houston Intercontinental

Frontier Denver

Alaska Seattle

Others* Totals

3,658,219

3,740,675

-82,457

-2.2%

Source: Tucson Airport Authority Airline totals include passengers on branded flights operated by contracted carriers: Continental Express (ExpressJet), Delta Connection (SkyWest), United Express (SkyWest) and US Airways Express (Mesa and SkyWest).

* Other: Sun Country operated flights in 2010 until April 5.

10 JANUARY 27, 2012

INSIDE TUCSON BUSINESS

PROFILE

In world of auctions, money is the great equalizer

By Patrick McNamara Inside Tucson Business Pickup trucks began to roll into the parking lot before 8 a.m. in anticipation of the Goodwill Industries auction. For many attendees, auctions aren’t an amusement, they’re a livelihood. None more than auctioneer Tim Shaw, the man behind the microphone at the twice-weekly Goodwill auctions. “The great thing about an auction is you have people from all walks of life,” Shaw said. At the Goodwill auction, attendees sort through bins piled high with clothing, shelves full of television sets, furniture-laden floor spaces and microwave ovens stacked five feet high. And that doesn’t even begin to scratch the surface of the offerings at Goodwill’s 1770 S. Cherrybell Stravenue warehouse. Old stereo equipment spills out of boxes, luggage fills multiple shelves and vacuum cleaners lie like cordwood on a shelf. “There’s a bunch of stuff in here and we’ve got to sell it all,” Shaw tells the growing crowd of buyers as he kicks of the auction and launches into the familiar auctioneer chant. Shaw, 28, has been auctioning since 2008. Prior to that, he owned a power washing company. “It was great money, but I had more fun

J.D. Fitzgerald

Auctioneer Tim Shaw fields offers at a Goodwill Industries auction.

selling being on the microphone than cleaning dirty sidewalks at midnight,” he said. Initially, Shaw and his father were buyers, going to yard sales, thrift stores, estate sales and auctions and selling items on eBay, a common starting point for many in the business. Despite some early fears among professional auctioneers, eBay didn’t make live auctions a thing of the non-digital past. “People who were buying on eBay were actually moving toward live auctions, not the other way around,” said Chris Longly, spokesman for the National Association of Auctioneers. The Overland Park, Kan.-based organization represents about 4,000 auctioneers across the country. Longly said the auction industry — not including eBay — represents a $250 billion chunk of the national economy, helping to sell everything from old household items to personal estates and radio frequencies. “Most people don’t realize that the car they have today will someday be touched by an auction,” Longly said. Cars traded in at dealerships often end up in auction sales. Longly called auctioneering one of the purest forms of entrepreneurship. “An auctioneer will give you a true market value, no more no less,” he said.

Biz Facts T&T Auctioneers 3101 S. Oberon Road www.tntsauction.com (520) 358-7881 (520) 440-6127 Interest in auctions has been on rise in recent years, in part because of an actual increase in occurrences. “We do see a lot more of the storage unit auctions because of the economy,” he said. Another factor lies with the popularity of a few auction-themed reality television series. “Storage Wars” and “Auction Hunters” both focus on the buyers at auctions mostly throughout southern California. The stars of the shows purchase defaulted self-storage units at public auctions to resale the items at swap meets, in thrift stores or just for the thrill of finding that rare highly valuable item that someone had hidden away in a storage locker. Shaw also conducts storage unit auctions and said he’s seen an increase interest even before the shows started to air. Many of the longtime auction attendees

that Shaw meets don’t like the shows and have complained that they’re overly dramatic. He disagrees. “It’s that exact same way at the storage auctions,” Shaw said. The characters represented at the show resemble many of the archetypes he sees at auctions — store owners, antique hunters and eBay sellers. “People like these auctions because of the prospect if a deal,” Shaw said. The interpersonal conflicts that erupt between the stars on “Storage Wars” or the coordinated efforts to bid up the price of units when a newcomer steps in are things that happen all the time at auctions. “There is storage locker drama,” he said. “But I treat everyone equally, because they are all equals, everyone with money is treated equally.” Shaw also calls charity and estate auctions. Estate auctions represent the most demanding part of the job, Shaw said. He and his team spend at least a month preparing an estate by itemizing and determining a value of every item in a house. “It can be like a treasure hunt,” he said. “It’s the funnest job in the world.”

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

InsideTucsonBusiness.com

JANUARY 27, 2012

MEDIA KOLD will make Wednesday deadline to start doing KMSB newscasts By David Hatfield Inside Tucson Business It has been a mad rush but come Wednesday (Feb. 1), KOLD 13 officially takes over production of the newscasts on KMSB 11, includiing the debut of a new morning morning show, â&#x20AC;&#x153;Fox 11 Daybreak,â&#x20AC;? that will air from 7-9 a.m. weekdays. The KOLD effort has been fast-tracked since the Nov. 14 announcement that its parent company, Raycom, and Belo Corp., owner of both KMSB and KTTU 18, had signed a shared services agreement. Thereâ&#x20AC;&#x2122;s a couple of loose ends that wonâ&#x20AC;&#x2122;t meet the Feb. 1 deadline. It will be another two weeks or so before KOLD takes over the master control switching operations for the Belo stations. Debbie Bush, vice president and general manager at KOLD, said her station is test-running the switching equipment so in the meantime, Belo will continue to handle the master control operations from Phoenix for both KMSB and KTTU. And construction to house Beloâ&#x20AC;&#x2122;s sales staff at KOLDâ&#x20AC;&#x2122;s studios isnâ&#x20AC;&#x2122;t finished so they will remain at the KMSB/KTTU building until the end of February. Some of the other final details: â&#x20AC;˘ Chris Holmstrom has been named the anchor of the weekend newscasts, at 5:30 p.m. and 10 p.m. Saturday and Sunday on KOLD and at 9 p.m. both days on KMSB. Holmstrom came to KOLD in August as a reporter. A graduate of Northern Arizona University, had been in southeastern Washington state working for the NBC affiliate serving the cities of Pasco, Richland and Kennewick. â&#x20AC;˘ Cuyler Diggs is moving over from KMSB to do the weather on both the KOLD

and KMSB newscasts on Saturdays. KOLDâ&#x20AC;&#x2122;s Aaron Pickering will do the same on Sundays. â&#x20AC;˘ David Kelly, who has been doing sports at KMSB, will do weekend sports on both KOLD and KMSB. â&#x20AC;˘ The 20-minute â&#x20AC;&#x153;Fox 11 Sports Forceâ&#x20AC;? show that has been airing at 9:40 p.m. Sundays on KMSB will go away, replaced by a traditional hour-long newscast from 9 to 10 p.m. â&#x20AC;˘ â&#x20AC;&#x153;Good Morning Arizona,â&#x20AC;? the Phoenixbased live morning show that has been airing from 5-9 a.m. on KMSB, will no longer air in Tucson. Coupled with the launch of the new live local show starting at 7 a.m., Belo has decided to replace the first two hours with repeats of the nationally syndicated programs.

Star parentâ&#x20AC;&#x2122;s bankruptcy No creditors objected in bankruptcy court to Lee Enterprises restructuring plan of almost $1 billion in debt so U.S. Bankruptcy Judge Kevin Gross on Monday approved it and said it could begin immediately. Ken Kansa, an attorney with Sidley Austin representing Lee Enterprises, said he anticipates getting everything in order and officially exiting bankruptcy on Monday (Jan. 30). Although not all creditors had agreed to the plan, Lee Enterprises had agreements from enough to force the issue, which refinances the debt out to 2015 and allows for conversion of some of it for to a 15 percent equity stake in the reorganized company. Lee Enterprises, based in Davenport, Iowa, owns 48 daily newspapers including the Arizona Daily Star, the assets of which were not part of the Dec. 12 bankruptcy filing. Earlier this month, Lee Enterprises

reported its operating revenue for the quarter ended Dec. 25, 2011, were down 3.9 percent from a year earlier to $199.6 million.

Names in news Jane Amari, the last publisher and editor of the Arizona Daily Star under Pulitzer ownership, has hung up the spurs, so to speak, from her 45-year newspaper career. For the past seven years she has been publisher of the San Pedro Valley News-Sun in Benson and Arizona Range News in Willcox, both of which are owned by Wick Communications, the same company that owns Inside Tucson Business. Amari was at the Star from 1999 to 2005, leaving when Pulitzer Inc. was sold to Lee Enterprises. She and her husband, Roberto, bought a 460-acre ranch near Benson where they own American Saddlebred horses. Pior to the Star, Amari held management positions with Gannett, Knight-Ridder, Times Mirror and the Kansas City Star. The rumors can stop with the announcement from Journal Broadcast Group that it has re-upped Jon Justice to continue hosting his 6-10 a.m. weekday radio show on the Truth, KQTH 104.1-FM. Terms of the new deal were not announced. There had been rumblings in media circles that Journal might not be able to hold on to Justice. It was even suggested that the company launched James T. Harrisâ&#x20AC;&#x2122; 10 a.m.-noon show in October to establish him as a potential replacement for Justice. Of course the Journal folks never acknowledged the rumors. Adam Weyne, who gained friends in the Tucson market during his four years as general sales manager at KOLD until November 2007, has moved on yet again and is now the director of sales at KFMB-TV,

the CBS affiliate in San Diego. Since leaving KOLD, Weyne had been the director of sales at KNXV, the ABC affiliate in Phoenix.

Addy special awards When media types start to get an inferiority complex about the Tucson market, I often point out that in the 1980s the advertising agency of record for the multimillion dollar Arizona Office of Tourism account was not a Phoenix firm but Taylor Advertising, headquartered in Tucson. And that wasnâ&#x20AC;&#x2122;t the only big-time account the agency had either. In a long overdue acknowledgement, the American Advertising Federation Tucson is giving Jay Taylor its Silver Medal Award this year. The Ad Fed has been handing out the Silver Medal Award since 1959 in recognition of outstanding contributions to advertising and who have been active in furthering the industryâ&#x20AC;&#x2122;s standards, creative excellence and responsibility in areas of social concern. Other recipients of special Ad Fed awards this year: Fran Katz, associate publisher of Tucson Lifestyle magazine, will receive the Phyllis Ehlinger Women of Excellence Award; Allen Kath, best known now as â&#x20AC;&#x153;Big Al our Traffic Palâ&#x20AC;? for the Journal Broadcast Group, will get the Golden Mic Award; and Kevin Madden, CEO and founder of Madden Publishing, is getting this yearâ&#x20AC;&#x2122;s Golden Pen award. The awards will be handed out as part of the 31st annual Addy Awards gala Feb. 18 at the Fox Tucson Theatre, 17 W. Congress St. Information about the event is on the Ad Fedâ&#x20AC;&#x2122;s website: www.aaftucson.org/.

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

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ARTS & CULTURE

Arizona Opera season resumes with ‘Madama Butterfly’ Arizona Opera presents Giacomo Puccini’s most beloved opera, “Madama Butterfly” Feb. 4 and 5 at the Tucson Music Hall in the Tucson Convention Center complex, 260 S. Church Ave. The classic tale of love and loss features spectacular sets and costumes. Performances are at 7:30 p.m. Feb. 4 and 2 p.m. Feb. 5. Tickets are available through TCC box offices or for season subscription information go to Arizona Opera online at www.azopera.org.

Radio legend UApresents brings lots of famous, topnotch performers each season and, while the marquee names are giants in their respective genres, the next scheduled performer might be able to lay claim to having the widest general audience in this year’s season. Humorist Garrison Keillor brings his unique blend of homespun observations from Lake Wobegon to Centennial Hall, 1020 E. University Blvd. on the University of Arizona campus, at 7:30 p.m. Wednesday (Feb. 1). Ticket prices range from $29 to $69, with small discounts for students, military and seniors. Buy them online at www.uapresents.org. Keillor’s shows usually sell out.

Glass art Sonoran Glass Academy presents its 10th annual “Flame Off” starting at 6 p.m. Feb. 3 at the Rialto Theatre, 311 E. Congress St. The event, which challenges teams to create an elaborate glass creation, involves 24 different teams either solo artists or duos working over flames. Begun by Tucson glass art legend Tom Philabaum, this annual competition is a highlight of the Tucson Gem and Mineral show and this year will feature two sessions of competition, cash bars, pizza

from Empire Pizza, fine arts performances and local music. Attendees can then big on pieces they’re seeing created. Tickets purchased in advance at the Rialto box office are $25 general HERB STRATFORD admission or $22 for reserved balcony seating. The prices go up $3 each the day of the Flame Off. Information is online at www.sonoranglass.org.

Art A new three-person exhibit debuts today (Jan. 27) at Etherton Gallery, 135 S. Sixth Ave. Titled “Don’t Look Now” features work from Craig Cully, Chris Rush and James Reed with work in painting and mixed media. The artists bring a unique style and exquisite technique to their work, which often invoke mixed emotions. The show will be up through March 27.

Film This weekend’s releases include “A Dangerous Method,” a film about psychoanalysists Sigmund Freud and Carl Jung, “In the Land of Blood and Honey” from first time director Angelina Jolie about a romance in war-torn Bosnia, “The Grey,” Liam Neeson’s survival thriller, and the action/adventure film “Man on a Ledge” with Sam Worthington and Ed Harris.

Contact Herb Stratford at herb@ ArtsandCultureGuy.com. Stratford teaches Arts Management at the University of Arizona. He appears weekly in Inside Tucson Business.

InsideTucsonBusiness.com

JANUARY 27, 2012

EXPENSE ACCOUNT MEALS & ENTERTAINMENT

Now you can start Saturday with a brunch ... downtown Starting Saturday (Jan. 28), 47 Scott will open at 10 a.m. offering several brunch dishes in addition to its lunch menu. The brunch/lunch menu will be offered on Saturdays until 4 p.m. when the restaurant transitions to its dinner menu. Owners Nicole Flowers and Travis Reese said their love of long and lazy weekend meals. “Great urban centers almost always include a thriving brunch scene,” said Reese. “As downtown continues to grow, we wanted to translate our dinner program into a brunch venue that includes quality comfort-food for Saturday afternoon diners.” “And we feel we have the perfect venue to do that with our patio,” added Flowers. While you’re downtown on Saturday, consider combining the brunch at 47 Scott with a visit to the Saturday farmers market that runs from 9 a.m. to 1 p.m. at the Historic Depot, 400 E. Toole Ave. There are enough other attractions to make it a full day downtown. • 47 Scott, 47 N. Scott Ave. — www.47scott.com — (520) 624-4747

Storied wine dinner The Antinori family name is synonymous with winemaking through 26 generations and more than 600 years in the Tuscany and Umbria regions of Italy. ations. In 1966, Piero Antinori first visited California and 20 years later, the family established roots in the Napa Valley.

Their first foray into California wine making was a partnership but they ended up with full ownership of the estate in 2006 and named the estate Antica, combining their MICHAEL LURIA name Antinori with California. Their their first release was in 2007. Primo at the JW Marriott Starr Pass Resort on Feb. 19 will feature a multicourse dinner paired with wines from Antica Napa Valley winery. Kim Wiss, executive chef for the winery, will host the special wine dinner. Cost is $125 per person, inclusive of tax and gratuity. The dinner should provide guests with a great opportunity to indulge in fine wine and cuisine. If you’re not interested in dining out with most of Tucson on Valentine’s Day, this might make a unique alternative way to celebrate the holiday with a Valentine. It’s just a few days later. • Primo in the JW Marriott Starr Pass Resort & Spa, 3800 W. Starr Pass Blvd. — www.jwmarriottstarrpass.com — (520) 792-3500

Contact Michael Luria at mjluria@ gmail.com. Meals & Entertainment appears weekly in Inside Tucson Business.

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JANUARY 27, 2012

BRIEFS Wings Like Eagles gives $60,000 to nonprofits The Wings Like Eagles Foundation, created by Golden Eagle Distributors in memory of founder William M. Clements, has awarded five charitable organizations a total of $60,000. The 2011 awardees were: â&#x20AC;˘ $10,000 to Christian Family Care for the ConnectOne, Southern Arizona Project. â&#x20AC;˘ $10,000 to Mobile Meals of Tucson Inc. to subsidize the direct cost of meals and delivery. â&#x20AC;˘ $10,000 to Reading Seed Inc. to support 500 students with reading coaching. â&#x20AC;˘ $10,000 to the Boys and Girls Clubs of the Casa Grande Valley to support the AfterSchool KidsLit program. â&#x20AC;˘ $20,000 to Youth On Their Own to support the monthly stipend program. Since 2003, the Wings Like Eagles Foundation has awarded more than $1.4 million to 427 nonprofits in Arizona. The foundationâ&#x20AC;&#x2122;s awards are granted to organizations that enhance their communities through child welfare, education, the arts, the spirit, the advancement of liberty and community goodwill. Applications for 2012 grants are open now and can be made online at www. twle.org. The foundation focuses but doesnâ&#x20AC;&#x2122;t limit its contributions to organizations in the areas served by Golden Eagle Distributors, which are Tucson, Casa Grande, Buckeye, Flagstaff, Globe and Show Low. Funding for the foundation comes mainly through direct contributions from employees and directors of Golden Eagle, which distributes Anheuser-Busch and other craft beer and import products.

GET ON THE LIST Next up: Commercial real estate brokers, Commercial building contractors, Commercial real estate managers With 2012 now underway, weâ&#x20AC;&#x2122;re collecting data for the 2013 edition of The Book of Lists. Upcoming categories that will be published in Inside Tucson Business are: â&#x20AC;˘ Feb. 3: Paid subscription newspapers, Free newspapers, Magazines â&#x20AC;˘ Feb. 10: Commercial real estate brokers, Commercial building contractors, Commercial real estate managers â&#x20AC;˘ Feb. 17: Manufacturing firms â&#x20AC;˘ Feb. 24: Commercial photographers, Video and film production companies â&#x20AC;˘ March 2: Wedding planners, Convention and meeting facilities, Caterers If your company fits one of these categories, now is the time to update your profile. Go to www.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) 2941200.

professional care. Suspected Jan. 8, 2011, shooter Jared Loughner had been a Pima student prior to the shooting, which left six people dead, where his behavior had caused concern among some teachers and students. Former Arizona Congresswoman Gabrielle Giffords also was injured in the shooting.

Wings Like Eagles

LEGAL

Tucsonan indicted on fraud charges

Awarding and receiving 2011 contributions from the Wings Like Eagles Foundation are, from left, Priscilla Altuna, executive director of Mobile Meals; Christopher Clements, president of the Wings Like Eagles Foundation; Susan Dudley, statewide director of Christian Family Care; Bill Osteen, of the Wings Like Eagles Foundation; Elizabeth Campbell, executive director of Reading Seed Inc.; Teresa Liverzani-Baker, executive director of Youth on Their Own; Ginny Clements, director of the Wings Like Eagles Foundation; and Matt Lemberg, chief professional officer of the Boys & Girls Clubs of the Casa Grande Valley.

EDUCATION/RESEARCH

Training for PCC staff to ID mental illness Pima Community College has begun to offer in-depth training for faculty, adminis-

trators and staff to identify and help individuals with symptoms of mental illness. The training in Mental Health First Aid Certification will teach employees a fivestep plan for quickly providing help, including assessing for risk of suicide or harm, and connecting people with appropriate

A federal grand jury has charged Tucsonan Dino Sisneros with wire fraud and transactional money laundering in connection with an alleged mortgage fraud scheme. Sisneros and six others are currently scheduled for trial on separate federal mortgage fraud conspiracy charges. The indictment charges Sisneros with operating a real estate investment fraud scheme wherein falsely represented to investors that their money would go into real estate investments and earn large returns. Instead of investing the victimsâ&#x20AC;&#x2122; money in real estate, federal authorities say Sisneros used a large portion of the money for his own personal use. The indictment says that five victims loaned Sisneros approximately $861,000 to invest in real estate.

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INSIDE TUCSON BUSINESS

BANKRUPTCY CONTINUED FROM PAGE 3

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states, including Alliance Bank of Arizona. Sarver’s father, Jack Sarver, was a prominent Tucson businessman who built the Plaza International Hotel (about to become Aloft, see separate story) and the Aztec Inn, now the Randolph Park Hotel and Suites, 102 N. Alvernon Way. “We viewed this as an ideal reorganization situation involving incredibly highquality assets that required strong ownership and equity to provide Westin with the tools necessary to position each hotel properly, allow them to emerge from bankruptcy, and maximize their operating performance,” Mark Schlossberg, managing partner in Southwest Value Partners, said in a statement. The La Paloma resort opened in 1986 and, although there have been some up-

dates over the years this will be the first time the entire resort has undergone a complete renovation, “This is a top to bottom project, we’re not drawing any lines on this,” Litvack said. Even meeting rooms and other space that has been added in recent years will be renovated. “Sometimes you might look at something and figure you can get some more use out of it, we won’t be doing that here.” While there are still many details to work out, Litvack said construction could begin as early as this summer. In fact, one project upgrading the fitness facilities, was already designed and should be finished within two months. While Marriott officials say they don’t anticipate any changes in the day-to-day operation of the Starr Pass Resort, ownership remains a question. Starwood and Marriott, along with other brands such as Hilton and Hyatt, don’t own most of the hotels they operate. Instead, they have manage them in exchange for as much as 15 percent of operating revenues. Meanwhile, the two Westin properties previous owner, Transwest Partners/ NCH Corp. and its affiliated companies are still in bankruptcy court over other properties, including the Doubletree Hotel at Reid Park, 445 S. Alvernon Way; La Posada Lodge and Casitas, 5900 N. Oracle Road; Hampton Inn and Suites Tucson Mall, 2950 N. Oracle Road; and TownePlace Suites by Marriott Tucson, 405 W. Rudasill Road. Another property, Embassy Suites Tucson Williams Center, 5335 E. Broadway, was taken over in December by Tucsonan Humberto S. Lopez who was a creditor in the hotel. Under the terms of that deal, an investment group that was owed $17 million now has a secured claim in the property of $7.5 million. Lopez paid $600,000 immediately and the remainder is in a promissary note that matures Nov. 30, 2018.

NEW HOTELS CONTINUED FROM PAGE 3 “Once we have a decision on that we can get to work on final designs,” Warne said, adding that he anticipates construction could get underway in December. The development is planned as a multi-use facility that would tie in with the Main Gate Square development and, among other things would include a multi-screen movie theater complex and retail. The new hotel is being planned as an all-suite and most likely would be branded separately from the existing Marriott Meanwhile, east of the UA, the “hip, urban attitude” Aloft hotel is near the final stages of planning to replace the sevenstory, 150-room Four Points by Sheraton, 1900 E. Speedway at the southeast corner of Campbell Avenue. Demolition work

on the existing hotel should begin this summer with construction complete 18 months after that. The idea for the Aloft hotel has been floating more than six years since Starwood Hotels and Resorts announced Tucson would be one of five launch cities for the concept. Some of the delay stems from demolition issues of the existing building that was completed in 1972. As of the end of 2011, Starwood had opened 50 Aloft hotels. The concept is derived from Starwood’s W hotel division. Rooms feature loft-like decor with nine-foot ceilings, platform beds and an emphasis on tech features, including free Wi-Fi and a plug and play connectivity station for charging electronics and syncing with an 42-inch LCD HDTV.

InsideTucsonBusiness.com

JANUARY 27, 2012

CALENDAR SPECIAL EVENTS

Export University – How to succeed in Mexico The U.S. Commercial Service will lead participants through the detailed process of selling products and services in Mexico Thursday (Feb. 2) 8:15 a.m. to 4 p.m. Pima Community College Downtown Campus Amethyst Room 1255 N. Stone Ave. Cost: $95 (companies may be eligible for a 50 percent reimbursement via Arizona STEP Grant funds) Breakfast and lunch provided Registration: www.regonline. com/exportumexico An Evening with Noam Chomsky: “Education for Whom and For What?” Wednesday (Feb. 8) 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 State of the City Luncheon and Address Mayor Jonathan Rothschild to give Tucson’s annual address Tuesday (Feb 14) 11:30 a.m. Tucson Convention Center 260 S. Church Avenue Cost: $50 for Tucson Metro Chamber members; $70 general public http://TucsonChamber.org Info: Gina Babunovic gbabunovic@tucsonchamber. org (520) 792-2250 ext. 133 Multi-Chamber Business Expo The 2012 Multi-Chamber Business Expo held in

conjunction with the state of the city luncheon Tuesday (Feb 14) 10 a.m. Booth purchase is $300 on a first-come, first-serve basis; sales deadline Tuesday (Feb. 7) Info: Cindy Brown at cbrown@ tucsonchamber.org or call (520) 792-2250 ext. 154 http://TucsonChamber.org Employment Law Breakfast Briefing Lawyers from Fennemore Craig present a seminar for employers and human resources professionals Tuesday (Feb. 16) 7:30 to 9:30 a.m. Marriott Tucson University Park 880 E. Second St. Contact: Cheryl DeVries cdevries@fclaw.com (602) 916-5292 www.fennemorecraig.com Free, RSVP required

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 REGULAR MEETINGS

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 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)

PEOPLE IN ACTION

ANNE ROSENFELD

NEW HIRES Anne Gassmann Rosenfeld, Ph.D., R.N., C.N.S., F.A.H.A., F.A.A.N., recently joined the University of Arizona College of Nursing as associate dean for research. She most recently was associate dean for research, innovation and translation at the Oregon Health and Science University School of Nursing. Rosenfeld also is a fellow of the American Heart Association and the American Academy of Nursing. She earned her bachelor’s degree in nursing from the College of Mount Saint Joseph, her master’s degree in nursing from the University of Arizona, her doctorate in nursing from the Oregon Health and Sciences University and completed postdoctoral studies through the American Heart Association.

Tiane Kennedy has joined GAP Ministries after four year with another non-profit group where she successfully acquired $55,000 in grant funding. She also coordinated the agency’s Tucson events as a part of a statewide team. Nina Jani has joined La Cañada Care Center as executive director. Before joining La Cañada Care Center, Jani served as executive director at Kindred Transitional Care and Rehab in Tucson. She has been in the long-term care field since 1997. Jani has a bachelor’s degree in exercise science and physiology. Ryan Hansen has joined Bon Voyage Travel as vice president and chief operating officer. Hansen comes to Bon Voyage following a 19-year career in the athletic department at the University of Arizona. Hansen also

NINA JANI

served as a commentator for UA basketball radio broadcasts from 1997-2009; he currently hosts the UA men’s basketball radio pre-game show on the Arizona IMG Sports Network. Hansen holds a bachelor’s degree in health related professions and a master’s in educational psychologyphysical education from the University of Arizona. PROMOTIONS Pinnacle Plan Design, LLC recently promoted Nic Miller as a retirement plan administrator. He will manage the ongoing administration of a wide range of qualified retirement plans. Miller joined Pinnacle Plan Design, LLC in 2007. He earned a bachelor of science in accounting from the University of Arizona.

RYAN HANSEN

MARK FABER

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print.

ELECTIONS The Arizona Small Business Association (ASBA) announced its new board members for 2012. They include: Joe Higgins, chair, entrepreneur; Roy Irwin, vice chair, Irwin Insurance & Investments, LLC; Donna Robinson, secretary, Network Dogs, Inc.; Jacob Gregory, treasurer, CliftonLarsenAllen LLP; Kim Marie BranchPettid, LeTip International; John Ficorilli, Mountain State Employers Council; Karen Karr, Lewis Brisbois Bisgaard & Smith, LLP; Ryan McMullen, RSI Enterprises, Inc.; and Russ

Yelton, Northern Arizona Center for Emerging Technologies. AWARDS The Arizona Small Business Association (ASBA) announced awards to outstanding partners, board members, staff and volunteers. Honorees include: Board Member of the Year: Donna Robinson, Network Dogs, Inc.; Board Member of the Year, honorable mention: Jacob Gregory, CliftonLarsenAllen LLP; Corporate Partner of the Year: SCF Arizona; Strategic Partner of the Year: BNI Arizona;

Volunteer of the Year for the Southern Arizona Region: Barney Hilton Murray, BHM Media Arts Group; Volunteer of the Year for the Central Arizona Region: Victoria Trafton,Victoria Trafton Presents; ASBA Employee of the Year: Debbie Hann, vice president finance and administration. Ashley Bowman, MFA, co-artistic director and founding member of Artifact Dance Project, has been awarded the 2011 Buffalo Exchange Arts Award of $10,000. The award will be presented by the Community Foundation for Southern Arizona (CFSA) at a reception at Beowulf Alley Theatre, 11 S. Sixth Avenue. Bowman earned both her BFA and her MFA from the University of Arizona and she is currently an instructor at Tucson Dance Academy. Artifact Dance

ANNE MAXON

Project is a small company focused on integrating dance, live music and film. Blease Financial Services financial consultant, Mark Faber, has been awarded the professional designations Chartered Life Underwriter and Chartered Financial Consultant. Faber has more than 26 years of experience in the financial services industry and offers Securities through LPL Financial, Member FINRA/ SIPC. The Arizona Centennial Legacy Project: Arizona’s 48 Most Intriguing Women announced the honorees of the award, which includes several from Southern Arizona. Those include: Tucsonans Carmen Bermudez, Susan Claassen, Ann Day and Cindy Parseghian. Rep. Gabrielle Giffords and Linda Ronstadt were

named among four Legacy Legends. The Southern Arizona Attractions Alliance has honored Anne Maxon, Metropolitan Tucson Convention and Visitors Bureau’s Visitor Center supervisor, with the David J. Nivison Award for Excellence in Tourism during a ceremony earlier this week at Lodge on the Desert. The Nivison award is given to individuals, companies, businesses, attractions and government agencies who have distinguished themselves by exhibiting unusual commitment, unwavering zeal, or uncommon success and whose efforts have left a lasting, positive impact on the local tourism industry. Maxon has served as as supervisor since June 2004. She holds a bachelor of fine arts from the Collegio de Artes in Granada, Spain.

18 JANUARY 27, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Don’t play politics with your investment decisions With the election season heating up, you will hear more and more promises and claims and counter-claims from candidates. As a citizen, you may or may not enjoy this “political theater,” but as an investor, you might be concerned over the talk about taxes, Social Security, Medicare and other financial topics. Will you need to adjust your savings and investment strategies? If so, how? Before you think about adjusting your investment strategy in anticipation of any actions coming from Washington, D.C., keep a couple of facts in mind. First, few campaign promises become reality. Second, due to our system of government, radical shifts in direction are difficult to implement — which is why so few of them occur. Still, we may see some smaller-scale, yet not insignificant, changes in the near future. In light of this possibility, what investment decisions should you make? Here are a few suggestions: • Consider owning investments that are taxed in different ways. No one can predict what will happen with income tax rates or the tax rates that are applied to capital gains and dividends. Consequently, it may be a good idea to seek “tax diversification” by owning investments that are taxed in different ways. For example, when you sell appreciated stocks, you pay capital gains taxes, whereas interest payments from bonds will be taxed at your individual tax rate. And it’s always a good idea to take advantage of tax-advantaged vehicles, such as an IRA and your 401(k) or other employer-sponsored retirement plan. • Stick with quality. When owning stocks, its a good idea to invest in quality companies with diversified businesses. These companies are usually less dependent on a particular government program, and they typically have a global reach, so they may be better able to handle any changes implemented in Washington.

• Stay focused on your long-term goals. Politicians come and go, and our political parties seem to take turns holding the reins of power. Yet your long-term goals — such as college for your children, TIM BEITHON a comfortable retirement and the ability to leave a legacy to your family — don’t really change. By realizing that you are largely responsible for achieving your goals, and by following an investment strategy that’s suitable for your individual risk tolerance and time horizon, you can make gradual, but still meaningful, progress toward those goals — no matter what’s happening in Washington. • Review your strategy regularly. With the possible approach of changes in tax policies and in government programs that can affect your retirement security, you’ll want to review your investment strategy regularly to make sure it’s still on track toward helping you meet your objectives. As part of this review, you may want to seek out more “tax-smart” investment opportunities, while always looking for ways to supply the asset growth you’ll need to enjoy the retirement lifestyle you’ve envisioned. Aside from voting for the candidates who you think best represent your interests, you may not have much influence over what goes on in Washington. But by “electing” the right moves to help meet your goals, you can have plenty of control over your investment strategy.

Contact Tim Beithon, a financial advisor with Edward Jones, at Tim.Beithon@ edwardjones.com or (520) 546-1839. Beithon’s office is at 9525 E. Old Spanish Trail, Suite 111.

W FOLLO ADER THE LE

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

Company Name

Symbol

Jan. 25

Jan. 18 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 0.06 14.99 37.13

0.08 0.08 14.80 37.23

-0.01 -0.02 0.19 -0.10

0.12 0.02 8.35 32.96

0.97 0.10 16.59 39.25

10.48 0.62 2.98 7.35 60.49 8.96 7.60 79.85 25.71 57.59 4.81 18.15 29.96 26.12 19.23 26.32 13.46 82.72 37.53 42.18 9.96 45.83 60.86 14.49 46.08 27.35 45.26 58.11 191.73 31.76 57.52 5.04 37.60 31.40 9.78 47.75 24.65 1.47 22.80 26.91 38.18 54.85 34.19 35.16 27.75 42.26 59.59 34.27 7.99 49.71 43.55 22.88 36.64 44.87 12.64 9.51 42.07 26.70 51.14 17.01 32.80 38.21 20.41 113.63 55.97 7.52 28.60 61.47 34.69 30.20 8.19 17.52

10.02 0.42 3.50 6.80 58.08 8.33 7.37 78.92 25.17 58.19 4.50 17.05 29.03 25.72 17.03 25.52 13.00 81.76 37.46 43.10 8.92 46.29 60.60 14.12 44.47 27.27 44.88 58.19 181.07 31.92 56.45 4.90 36.54 31.00 9.69 48.09 24.12 0.76 23.00 27.46 38.38 52.65 35.37 33.94 26.64 41.22 60.17 33.92 7.94 49.62 44.11 21.55 36.35 39.49 13.59 9.02 41.67 26.50 49.87 15.60 33.72 37.39 18.25 109.82 54.03 6.04 29.08 60.01 33.75 30.24 7.56 18.79

0.46 0.20 -0.52 0.55 2.41 0.63 0.23 0.93 0.54 -0.60 0.31 1.10 0.93 0.40 2.20 0.80 0.46 0.96 0.07 -0.92 1.04 -0.46 0.26 0.37 1.61 0.08 0.38 -0.08 10.66 -0.16 1.07 0.14 1.06 0.40 0.09 -0.34 0.53 0.71 -0.20 -0.55 -0.20 2.20 -1.18 1.22 1.11 1.04 -0.58 0.35 0.05 0.09 -0.56 1.33 0.29 5.38 -0.95 0.49 0.40 0.20 1.27 1.41 -0.92 0.82 2.16 3.81 1.94 1.48 -0.48 1.46 0.94 -0.04 0.63 -1.27

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 37.87 43.64 8.03 28.85 16.92 28.13 41.22 151.71 24.28 39.87 2.69 27.85 25.73 5.02 42.14 21.14 0.58 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 51.14 10.47 7.15 32.12 20.96 45.28 14.10 24.34 27.62 15.92 77.73 37.08 4.53 20.10 48.31 30.34 22.58 4.44 13.18

18.47 7.65 6.29 14.95 66.64 13.01 9.27 87.65 35.45 59.59 7.29 29.88 49.60 27.16 42.50 56.61 15.00 88.68 45.34 43.17 12.34 61.08 70.15 14.28 58.75 29.68 45.50 62.28 194.90 35.79 57.60 6.18 48.36 38.40 16.11 57.39 25.85 3.47 23.11 27.57 45.31 56.50 35.92 42.78 27.46 54.90 72.50 41.00 8.58 53.12 45.65 25.43 40.75 94.79 17.28 12.88 43.22 31.89 56.05 23.46 36.71 38.62 27.72 114.82 58.29 11.28 29.42 62.00 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.

InsideTucsonBusiness.com

JANUARY 27, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Legends event to honor real estate legacies of Amos, Kivel and Long families at CCIM By Roger Yohem Inside Tucson Business It’s now a “legendary” tradition. For the second year in a row, “Legends of Real Estate” will be honored by the Southern Arizona CCIM Chapter (Certified Commercial Investment Member). To set the tone, the group has lined up two notable speakers: University of Arizona Athletic Director Greg Byrne and Tucson Metro Chamber CEO Mike Varney. At the 21st Annual CCIM Forecast Feb. 16, CCIM will honor three real estate families whose legacies go back as far as 100 years. “Our legends are the Amos, Long and Kivel families. Each is well-known in real estate circles and throughout the community,” said Brandon Rodgers of Picor Commercial Real Estate, who is helping to organize the event. The Amos family has been involved in Tucson Realty & Trust Company since 1911. The Long Company traces its roots back to 1926. And the Kivels are best known as the developers of legacy commercial retail projects including El Con and Park Place malls. Representing the families will be brothers Hank and Phil Amos, Russell Long, and brothers Al and Foster Kivel. The ceremonies will be emceed by George Larsen of Larsen Baker, and Jim Marian of Chapman Lindsey. Last year’s inaugural legends were Don Diamond, Chuck Pettis, Sanders “Sonny” Solot, Roy Drachman and Bill Estes. The forecast itself brings together 15 to 20 experts in all disciplines of commercial real estate to discuss their insights for 2012. This year’s event takes place from 1 to 5 p.m., Feb. 16 at Loews Ventana Canyon, 7000 N. Resort Drive. Costs vary and increase after Saturday (Jan. 28). The Tucson Association of Realtors is handling reservations. To register, email aaron@tucsonrealtors.org

One in every 476 home owners in Tucson received a foreclosure notice in December.

Coldwell Banker report Sales price. Days on market. Inventory. New listings. After Coldwell Banker Residential Brokerage analyzed all the data, 2011 turned out to be just another year of mixed performance in the Tucson housing market. In the city of Tucson, lower prices accelerated the pace of sales. Year-overyear, the median sales price dropped 11 percent to $116,325 at the end of 2011 from $131,000 in December 2010. Average prices fell 8 percent to $161,711 from $175,737. The lower prices sparked a 13.8 percent year-over-year increase in sales. Closings for 2011 totaled 10,160 compared with 8,926 in 2010, according to Coldwell Banker. Faster sales also drove down inventory by one-third to 3,734 homes from 5,630 at end of 2010. “The selling price per square foot is a great indicator for the direction of property values,” said Malcolm MacEwen, president of Coldwell Banker, “Since median and average sales prices are impacted by a mix of high and low-end properties.” The December 2011 selling price in

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

Current

Last Week

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.

2,011 foreclosures In the third quarter of 2011 there were

1/24/2012

One 12 Month 12 Month Year Ago High Low

3.88% 4.125%APR 3.88% 4.125%APR 6.18% 3.25% 3.56%APR 3.25% 3.56% APR 5.94% 2.88% 3.25%APR 2.88% 3.25% APR

Tucson was $82 per square foot compared to $92 in December 2010. Marana dropped to $92 per square foot from $105 and Sahuarita went from $72 to $65. In Marana, price performance was uneven. The median sales price increased 5 percent from $163,145 to $171,450 while the average sales price dropped 21.5 percent from $245,921 to $193,099. Sales increased slightly from 452 to 476 homes. In the metro’s southern region, 537 homes sold in Sahuarita, far ahead of the 2010 pace of 466. The average sales price was $122,512 at year-end compared to $147,854 in 2010. The median price was $115,000 compared to $141,000 in December 2010. “I believe we have hit the bottom of the market. If not, we are very close, very little room for prices to decrease further,” said housing analyst John Strobeck of Bright Future Business Consultants. “The next challenge for foreclosures will be to absorb the inventory out there and see if any of the financial institutions really do have shadow inventory that will be put on the market.”

3.88% 3.25%

THE PULSE: Median Price Active Listings New Listings Pending Sales Homes Closed

TUCSON REAL ESTATE

1/16/2012

1/9/2012

$122,000 5,547 373 410 159

$123,000 5,619 434 418 165

Source: Long Realty Research Center

2,011 foreclosed homes sold in Pima County. That was about twice the pace of newly foreclosed homes that came on the market, according to RealtyTrac, an online marketplace for foreclosures. The firm’s U.S. Foreclosure Sales Report showed that lenders foreclosed on 901 homes during the quarter. In December, one out of 476 homes received a new foreclosure notice. Statewide, the ratio was one in 357 homes. “Foreclosure sales continue to represent a historically high percentage of all sales,” said RealtyTrac CEO Brandon Moore. In the third quarter, foreclosures accounted for 20 percent of all home sales nationwide. In 2005 and 2006, the level was less than 5 percent, he explained. Nevada, California and Arizona continue to lead the nation with the highest percentages of distressed sales. In Nevada, 57 percent of all home sales were foreclosure-related; in California it was 44 percent and in Arizona it was 43 percent. The percentage for Pima County was 41.4 percent, according to RealtyTrac.

Sales and leases • PVB Fabrications leased 9,440 square feet at 2311 N. 14th Ave. from Raymond and Denise Sharp Revocable Trust, represented by Pat Welchert and Paul Hooker, Picor Commercial Real Estate Services. Dave Gallaher, Tucson Industrial Realty, represented the tenant. • USA Pawn & Jewelry Co. leased 4,800 square feet at 1726 W. Ajo Way from Park View Plaza Inc. Terry Dahlstrom, Volk Company Commercial Real Estate, handled the transaction. • Destiny Church International leased 2,375 square feet in Suite 21 at 4500 E. Speedway and Antigua Medical Services leased 2,134 square-feet in Suite 104 of the same complex from Presson Midway. Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services, handled the transactions. • Affordable Windows LLC leased 2,364 square feet at 3860 S. Palo Verde Road, Suite 310, from Palo Verde Trust Partners LLC. Rob Glaser and Paul Hooker, Picor, handled the transaction. • Bank of Tucson leased 2,361 square feet at 4400 E. Broadway from 4400 Tower LLC, represented by Michael Gross, Tucson Realty & Trust. Bob Davis, Grubb & Ellis, represented the tenant.

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

20 JANUARY 27, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Giffords’ resignation is disservice to constituents At the risk of being impertinent, I have to ask who is advising the decisions being made by U.S. Rep. Gabrielle Giffords? It doesn’t appear as if it’s someone who cares about her constituency. Despite calls for her to step down, I, and I’m sure plenty of others who continue to marvel at her amazing recovery from being shot last year, were content to let her fill out her DAVID HATFIELD term. We waited patiently for her to determine whether she would pursue re-election for a fourth term, always noting that she had until May to make that call. All the while, potential Republican candidates started forming exploratory committees but Democrats held off in deference to Giffords, their incumbent. The one thing constituents hadn’t lost is that Giffords’ staff was doing remarkable work for her district. The fact that up until this week she had cast only one vote — last August to raise the national debt ceiling — really had no impact because there wasn’t a case when her vote would have made a difference. Now, though, matters are made even more cumbersome with Giffords’ decision to step down Wednesday (Jan. 25). It makes for a needless waste of time, effort and money holding two elections this year — one for a candidate who will fill out a term of six months or less and then a regular election for the next two-year term. And it happens this year, of all years, in which new congressional boundaries are being drawn. Voters in Marana, for instance, will vote for her replacement in the special election but if the U.S. Department of Justice, approves the new maps of the Arizona Independent Redistricting Committee, they won’t vote for the candidates in that district in November. What about a potential candidate who lives in central Tucson and would be part of the new district but isn’t within the boundaries of the current district? There is also the cost of holding a special election. It has also been quite obvious that media coverage about Giffords has been engineered to the national stage — an hour-long prime-time special with Diane Sawyer on ABC, rather than an interview with a reporter from a TV station or newspaper in Giffords’ hometown. I know we’re supposed to believe Giffords made her decision during this year’s activities surrounding the commemoration of the Jan. 8, 2011, shooting but that YouTube video wasn’t a spur of the moment production. It took time. There’s also the point that since Giffords completed five years in Congress she is now fully vested in the Congressional pension plan. Whatever was the catalyst the fact is if Giffords was capable of being our congresswoman on July 27, 2011, she is still capable of being our congresswoman six months from today. Considering her recovery, she would probably be more capable. Her constituents were played. Giffords could have announced she wouldn’t seek re-election but she didn’t have to quit mid-term.

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

EDITORIAL

City Hall’s trouble with telling the truth If Tucson City Hall wants the residents of the region to believe they have turned a new leaf and truly want to attract business and economic development, a good place to start would be telling the truth and being honest about its intentions. The latest case in point: city transportation officials are now revealing to organizers of events that have brought thousands of people downtown, to Fourth Avenue and to the Main Gate Square areas that they can no longer expect to shut down streets for their events. It has to do with the new modern streetcar. City officials say federal transportation officials are insisting that so long as federal money is being used to fund the construction of the project, that it be kept running. Never mind that federal transportation officials won’t say that publicly. And city officials kept it under wraps from many organizers until recently, only weeks away from when actual construction is supposed to begin. There’s also the curious exemption for the spring and winter Fourth Avenue Street Fairs. It’s hard to know just what the impact of this will be on various events. Organizers for some events such as Second Saturdays and Tucson Meet Yourself say they don’t anticipate any negative effects and, in fact, believe the streetcar could bring additional people downtown to their events. The annual Dia de los Muertos procession will see its route drastically altered. And events along Fourth Avenue other than street fairs, are still trying to see if they can work out arrangements that would allow them to continue. No doubt, in typical City Hall fashion, some orga-

nizers will be bullied into submission. Others say they are still trying to argue their cases but at the same time are looking at alternatives. The alternatives, though would drastically alter successful events to the point they may no longer be viable. To be fair, we all probably should have seen this coming. Let’s face it, the modern streetcar is the new euphemism for light rail. The reason Tucson planners changed the name is that those pushing for it to be on the $2.1 billion, 20-year regional transportation plan approved by voters in May 2006, knew well that if it passed, there was little chance of getting federal money to help pay for it. In the George W. Bush administration, light rail had fallen out of favor. There was good reason for that. Light rail is extraordinarily dangerous. Accidents, including deaths, are routine on light-rail systems in cities across the country. And that’s on systems that are removed from lanes of traffic. Such won’t be the case in Tucson, where the modern streetcar will trundle along in lanes of traffic with cars and other vehicles. Perhaps that’s the reason why — despite the fact that funding is primarily from transportation sources — local officials are now touting the economic benefits that will come along its route and we shouldn’t be looking at it solely as a mode of transportation. The story changes as time goes on. There’s a line in Walter Scott’s poem “Marmion”: “Oh, what a tangled web we weave...when first we practice to deceive.” Here it is 2000 years later and Tucson City Hall keeps trying to lie.

InsideTucsonBusiness.com

JANUARY 27, 2012

OPINION WAKE UP, TUCSON

How you can change your business and this region for less than $2,000 The political events of the past on the board. The seats up three or four years seem to have this year are currently held become more amplified, more by Mark Stegeman, Alex intense and more polarizing. From Sugiyama and Miguel Cuethe craziness of Tucson Unified vas, the three who voted to School District (TUSD) to that follow the courts’ orders and “job creator” President Obama, remove Mexican Ameripeople are starting to realize can Studies. Keep an eye elections have consequences. on their actions in the next As we gear up for another few months. Budget: $150 major election year, allow us to • Legislature. RepubliCHRIS DESIMONE break down the races you need to cans enjoy a super majorpay attention to if you care about ity in both houses of the this region and your economic legislature and control the future. Nov. 6, is THE Election governor’s office. We saw Day. Start saving up now for some crazy bills come out of your “Rescue Pima County from the Capitol and the debate Itself” Christmas Club Account. goes on about budget cuts We’ll list the race, give but the fact remains: Going you a synopsis and suggest in to this fiscal year Arizona how much you should budwas among three states in get to make this happen: the worst fiscal condi• TUSD School Board. With the tion and now has turned JOE HIGGINS ethnic studies challenges, includthat around to a projected ing the kids chaining themselves budget surplus. Arizona’s job to desks and court decisions that have growth ranks seventh in the nation and the been played in local and national media, state’s bond ratings have been upgraded. TUSD is struggling with school closThe Arizona Independent Redistricting ings, desegregation rulings and declining Commission has managed to recarve the enrollment brought on by the free market state so that the make-up of the legislature pressures of charter schools, open enrollwill change from super majorities to mere ment to other districts and private school majorities. In the heart of Tucson, some tax credits. TUSD’s school board has been Democratic strongholds could be in play the political proving ground for candidates while the bright red districts in the Catalina for more than a generation. U.S. Rep. Raúl Foothills, Marana and Oro Valley will need Grijalva started at TUSD in the 1970s and little effort to remain Republican. Budget: his daughter serves there today. This year’s $300 for two legislators and a senator. election involves three of the five seats • Pima County Board of Supervisors.

Probably the most important races we’ll be watching involve the five county supervisor seats. Every four years the supervisors tell voters about the great jobs they’ve done fixing potholes, cleaning medians and attracting businesses — or in the case of the district we happen to live in, isn’t getting done. The key races are among the three seats currently making up the Democratic majority, with western Pima County District 3 the most vulnerable. This election will be about job creation and getting back to free market principals. Don’t take you eye off the ball, this is THE race. Budget: $500 (and you can call us if you want to know where to invest it). • Congress. Thanks again to the Arizona Independent Redistrict Commission, the maps waiting final Department of Justice approval will have the Tucson region split up among three congressional districts. The new Congressional District 1 splits Oro Valley, Marana and SaddleBrooke off from the rest of Southern Arizona into a district that goes all the way up to the four corners and includes Coconino County. This will make for a difficult campaign trying to link the varying interests and concerns of the Tucson region with Casa Grande and Flagstaff. The voter registration edge goes to the Democrats but moderates and independents could swing it toward a Republican. Indian tribes hold a lot of power in CD1 but there is the potential for a lot of votes to come from south of the Gila River. Congressional District 2, is mostly the same district that has been represented by Gabrielle Giffords until she

stepped down this week. Democrats are scrambling for a candidate and maneuvering the process with two elections including two primaries — one for the existing District 8 and the other for the new District 2 — within 10 months. Watch for another showdown among Republicans and a loaded race on the Democratic side with the Democratic National Committee pushing one that will be endorsed by Giffords. Budget: $500 for your particular district. • President. This is the race that gets the national media attention and will determine the future of this country and the free market system. As business owners ourselves, we view the last four years as a blur. We’ve seen store closings, layoffs and uncertainty coming out of Washington. As President Bill Clinton said back in 1992 after the Democrats lost the U.S. House of Representatives, “It’s the economy stupid.” Clinton was savvy enough to move off the policies that angered the voters and rocked the country too far to the left. President Obama is a great campaigner but he may want to call Clinton on the process of leading the free world. Budget: Priceless. Put as much as you can on this because if the economy stays on this same course, you won’t have anything left.

Contact Joe Higgins and Chris DeSimone at wakeuptucson@gmail.com. They host “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM. Their blog is at www.TucsonChoices.com.

GUEST OPINION

Hotel Arizona proposal will help downtown and benefit all Tucsonans Over 30 years ago, I bought the ated by the renovated hotel Santa Rita Hotel and a number of other to enable new financing for properties in downtown Tucson that renovation. Upon retirement I either demolished, redeveloped or of the renovation debt, all renovated in the hopes of stimulatsite-specific taxes used to ing the revitalization of downtown. secure the hotel debt would In 1984, I bought the hotel now be repaid, with interest. known as Hotel Arizona and since Editorial opposition then have remodeled it three times to the proposed partnerat a cost in excess of $15 million. This ship has focused largely HUMBERTO LOPEZ investment has yet to be recovered. on how it would “appear” Contrary to newspaper reports, should the proposal pass. my properties have never received finanIt has been suggested that the city would be cial assistance from the City of Tucson and playing “favorites” if it assists in the Hotel I have never used the Hotel Arizona as Arizona’s renovation, but that is not accurate. collateral to purchase other properties. Other downtown property owners and I am currently discussing a public-private I have consistently supported adoption of partnership with the city to renovate and cona policy that would allow all downtown vert the Hotel Arizona into a franchise-quality stakeholders and potential investors who hotel located on the modern streetcar line and meet economic development criteria serving the Tucson Convention Center (TCC). established by the city to become eligible My proposal seeks the temporary dedicafor economic development incentives. tion of site-specific sales tax revenue generIncentives would stimulate revitaliza-

tion of downtown with the goal of developing at least 1,000 hotel rooms, making the TCC a viable convention center attracting larger conventions, and as a result, more jobs and revenue for our city. My proposed plan involves no financial risks to the City of Tucson or its taxpayers and is contingent on my ability to secure financing and a national hotel operator. The renovation would create approximately 260 full-time jobs, help us preserve the annual gem show, and support the TCC. It would provide an anchor for downtown, a destination for the streetcar, tourism dollars, and employment for local construction workers, in turn generating sales tax revenue. Without renovation, the hotel will likely be converted to a different use which will not generate sales tax revenue. If the property ceases to be a hotel, the convention center will be unable to offer lodging within walking distance for visiting conventioneers and Tucson could risk losing

important components of the gem show and other conventions vital to our economy. Without convention-quality hotel rooms, we have no chance of attracting larger regional conventions that bring new visitors and dollars which multiply within our local economy, creating additional jobs and sales taxes. The Hotel Arizona proposal makes the TCC, and consequently other downtown hotels and businesses, more viable. The proposal is modeled on public-private partnerships that have been successfully used for over 30 years to develop downtown city centers in other communities nationwide, including Phoenix.

Humberto S. Lopez is president of HSL Properties, which is primarily an owner of apartment properties, but also owns hotels, including the Hotel Arizona. Read his complete proposal as submitted to the City of Tucson with this column online at www.InsideTucsonBusiness.com

22 JANUARY 27, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

How to write a superbissimo thank you note for a mirific, magnanimous gift The holidays recede, the new year rises, and the gifts you received cry out for thanks. Do the givers deserve something more than a simple “thank you”? What if they’ve braved a stampede of shoppers or scorched their eyeballs online searching for your ideal gift? Or unearthed the very thing you’ve desired by listening to you, understanding you, researching the choices? Or spent beyond their means or thought of you over the miles? For such energetic and devoted giving, recipients may want to reach for more expressive words of gratitude — words beyond those of the generic printed card, e-card, numbly texted “tnx,” or such hand-scrawled standbys as “Many thanks,” “Thanks a million” and “I really loved it.” Not that these stock expressions are necessarily unwelcome. They at least acknowledge receipt, making them somewhat more gratifying than the silence of ingrates who can’t be bothered, or of gift-haters, busy bees and the chronically forgetful. And before I myself forget — here’s an avalanche of thanks to my late mother, who, from the day I could write sentences, taught me how the lavish thank-you note could be its own way of giving, with attendant pleasures; how it could make the givers happy, make them feel they’d done

something special; reassure them that it’s as good to give (especially to me) as to receive. For anyone developing or honing writing skills, even as an adult, the gracious ARTHUR PLOTNIK thank-you note is a perfect exercise. And the notes I composed as a child in the post-holiday quiet were in many ways the beginning of a long writing career, an early confrontation with the challenges of rhetoric — clarity, force, grace, embellishment, balance, and so on. A thank-you had to be pegged to a specific audience, reference the particulars of a gift, describe feelings, and have the appropriate tone and heft — not too uncaringly brief and not (as my mother’s expressions of gratitude tended to be) a thanking-to-death. What, then, are some of the means for upgrading a thank you, short of mastering an all-purpose command of epistolary eloquence? Here are a few suggestions for consideration as you lay open your blank card (or screen) to write the giver of that necklace, Kindle, sweater, iPad, chunk of

change or charitable account. In general, dare to describe your feelings in powerful terms, even if they seem outside your usual idiom. But use such terms sparingly; one goes a long way. If the message begins to sound insincere, take the diction down a notch or simply say you mean every word. Acclaim the gift. Generic praise is unconvincing. Shun words like “great,” “awesome,” and “amazing.” Reach for fresher, more distinguishing superlatives such as stellar, bravura, consummate, magisterial, bedazzling, beguiling, pitch-perfect. Depending on your relationship with the giver, playful terms might also be appropriate — raveworthy, legend, bone-brilliant, superbissimo — as well as a dash of slang for your homies: rightful, trig, shibby. Acclaim the gesture. Was it not gladdening, gladsome, bighearted, kindly, jubilating, considerate, cheering, spirit-buoying, heart-juddering, exalting, regaling, magnanimous, sensitive, observant, or compassionate? Be generous yourself in your appraisal; it will bring good karma. Acclaim the giver. Go amusingly over the top if you like. Let the giver enjoy being anointed as enshrinable, selfless, peerless, prized, mirific (wonder-working), incomparable, venerated, sterling, legendary,

InsideTucsonBusiness.com

Did the TUSD Governing Board make the right decision to end the MexicanAmerican Studies program?

YES

Next week’s poll: Do you think a Democrat will win the race to complete Gabrielle Giffords’ term or will the GOP take the seat?

63% NO

37%

luminous, a national resource, a do-right citizen, the numba-one head of the situation. Trumpet your emotional response to the gift. Not tritely “blown-away,” but cock-a-hooped, transported, ecstasiated, endorphined, mind-marmalized (turned to marmalade), enthralled, dumbstruck, body-slammed, electrified, staggered, buzzed, jacked, cranked. You can add a pleasing dimension to your thanks by offering a small scenario involving you and the gift. As a youngster receiving a present of money, I would crow about the baseball mitt it would help buy, or the cool penny loafers, or my far-off college education. I didn’t have the words then to elevate my thanks above the ordinary, but I could lay on some of the schmaltz practiced in my household. Expressive thanks felt good, did good, and made my world a happier place, just as they do for me in today’s harried world and can do for anyone.

Arthur Plotnik is an author whose latest book is “Better Than Great: A Plenitudinous Compendium of Wallopingly Fresh Superlatives.” His “Elements of Expression: Putting Thoughts into Words,” revised and expanded, will appear this summer.

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JANUARY 27, 2012 Bearizona Wildlife Park in Williams, AZ is now accepting bids for food service concessions for the 2012 season.

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24 JANUARY 27, 2012

INSIDE TUCSON BUSINESS

Nominate 2012 Inside Tucson Business

UP&

COMERS

MAKING A MARK Now is the time to recognize young professionals who are on their way to greatness in the Tucson region. They are leaders in their 20s, 30s or early 40s who are making a difference for the better in their careers and their community. Go to: www.InsideTucsonBusiness.com and click on the Up & Comers icon. Nominate yourself or someone you know today. The deadline is Feb. 22, 2012. Honorees announced in a special section in the April 13 issue of Inside Tucson Business.