Inside Tucson Business 02/03/12 by Territorial Newspapers

HOUSING MARKET PROGNOSTICATORS Economist Marshall Vest, housing guru John Strobeck talk recovery and construction PAGE 19

Your Weekly Business Journal for the Tuc Tucson Metro Area WW W WWW.INSIDETUCSONBUSINESS.COM WW.IN W..IIN W NSI SIDE DETU TUCSONBUSINESS.COM • F FEBRUARY EB BRU RUAR ARY 3, 3 2012 • VOL VOL. 21, NO. 36 • $1

The swirlingg controversyy continues

KES TO A T T I WHAT THE GEM N L PUT O INERA

Marana to charge same as Pima County for sewer servicee Page 6

AND MCASE SHOW E 3 PAG

Arrested development nt Struggles continue ue due to $2 billion loss Page 23

BEHIND

THE SC ENES

Air Force sets meetings on its F-36 plans By Alan M. Petrillo Inside Tucson Business Moving forward on a proposal to locate an F-35 pilot training facility at one of four locations in the West, the Air Force is issued a draft environmental impact statement and has three meetings scheduled for Southern Arizona to take public comment. One of the locations is Air Guard Station at Tucson International Airport, though the Air Force says its preferred location for the first 72 jets is Luke Air Force Base near Glendale. The two other locations under consideration are Holloman Air Force Base near Alamogordo, N.M., and Boise Air Terminal Airport Air Guard Station in Idaho.

A final decision on the location won’t be made until after the Air Force completes a final environmental impact statement (EIS). Even if the Air Force ultimately decides on Luke AFB, Major Gabe Johnson, a spokesman for the 162nd Fighter Wing at Tucson International’s Air Guard Station said Tucson still might see some F-35A activity. “It depends on how many aircraft will be based at Luke,” Johnson said. “The Air Force might have to look at the alternatives as secondary sites for the F-35As.” The Air Force is planning to acquire 1,763 F-35s through 2035. The F-35A Lightning II would replace and supplement existing F-16 Fighting Falcon, A-10 Thunderbolt (Warthog) and other

legacy aircraft fleets, as well as complement the F-22 Raptor. The F-35A’s range and supersonic speed give it a combat radius and speed equivalent to or greater than the F-16, but because of its greater thrust, it is expected to have a higher noise decibel level in flight operations. Johnson said that should Tucson International’s Air Guard Station be chosen as the F-35A Pilot Training Center, it could receive either one, two or three 36-plane squadrons. If there were only one squadron would also base a limited number of F-16 aircraft at the airport. Currently, the 162nd Fighter Wing has more than 70 F-16s flying out of Tucson International where it also trains international partner nation pilots on the fighters.

The three meetings on the draft environment impact statement will be held in February. All are scheduled for 5 p.m. to 8 p.m., with the first hour as an open house informational session followed by a formal presentation and a comment period. The meeting dates and places are: • Feb. 21 at the Windemere Hotel and Conference Center, 2047 S. Highway 92 Sierra Vista • Feb. 22 at the Holiday Inn - Tucson Airport, 4550 S. Palo Verde Road • Feb. 23 in the auditoriam at the Jewish Community Center, 3800 E. River Road Written comments can also be submitted online through the 162nd Fighter Wing’s website, www.162FW. ang.af.mil

2 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

FEBRUARY 3, 2012

NEWS

What it takes to put on the gem and mineral showcase

American Airlines plans to cut 16% of workforce

BEHIND

THE SC

As parent company AMR Corp. continues to try to work its way through Chapter 11 bankruptcy protection, American Airlines this week laid out plans to cut 13,000 jobs and terminate its pension plans as it seeks to cut its employee costs by 20 percent. Still under review, however, is the fate of reservations representatives and some other positions. American has about 750 employees at its reservation center at 3550 E. Valencia Road. It is one of three reservations centers the airline has in the U.S. The employee cuts outlined Wednesday would eliminate about 16 percent of the airline’s workforce of 81,000. Of those, about 4,200 are in fleet service and Transportation Workers Union members, 4,600 mechanics and related workers, 2,300 flight attendants, 1,400 in management and support and 400 pilots. Besides reservations representatives, other jobs still under review are passenger service agents and flight planners.

ENES

J.D. Fitzgerald photo

State is adding more jobs in biosciences

Krista Sires looks through necklaces at the Tucson Gem Show at Kino Park.

By Christy Krueger Inside Tucson Business Most Tucsonans are acutely aware that every year at this time visitors from around the globe pour into the region for the Tucson Gem, Mineral and Fossil Showcase, promoted as the world’s largest event of its kind. But have you ever considered how it all comes together and who organizes this collection of 42 separate shows with thousands of vendors? It starts with Jane Roxbury, director of convention services for Metropolitan Tucson Convention and Visitors Bureau (MTCVB). She’s the coordinator and contact person for the show owners and vari-

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

ous city entities that are involved. About half of her working hours are spent dealing with various gem show issues. “I’m the key city liaison to show owners and promoters,” explained Roxbury. “They’re my clients, like a convention planner. This is also a busy time for conventions, so I spread my gem show support over the year.” Although the number of exhibitors may seem daunting, Roxbury pointed out that each show owner is responsible for his or her vendors — setting up booths, tents, electricity and temporary staff — as well as collaborating on transportation with other owners. “Most shows have been in business so

long they have it nailed,” she said. Other than partnering up to provide shuttle service between venues, show owners don’t necessarily know each other, and they don’t belong to an association that ties them together, according to Roxbury. “We do convene with them two times with city council members and the mayor’s and governor’s offices. There’s a kick-off party at the start of the show and a business meeting and reception toward the end of the show.” Much of what MTCVB staff members handle concerning the event is marketing, fielding calls from potential new vendors,

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PUBLISHER THOMAS P. LEE tlee@azbiz.com

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

Despite the recession, bioscience jobs are on the increase, according to the Flinn Foundation’s Arizona Bioscience Roadmap update, released Wednesday. The number of bioscience jobs increased by 7.4 percent during the postrecessionary period of 2009-2010, compared with a 1.8 percent decline for the state’s overall private sector, according to the annual study conducted by the Battelle Technology Partnership Practice. “Through the most trying economic circumstances of our lifetimes, bio in Arizona more than held its own,” said Walter Plosila, senior adviser to the Battelle practice. He said the bioscience sector has progressed beyond the “promising” stage and is “becoming integral to Arizona’s future.” Since the Arizona Bioscience Roadmap was launched in 2002, the number of bioscience jobs in the state has increased by 41 percent to 96,223, compared with 11 percent growth for the nation as a whole. Those jobs pay average annual wages of $55,353 - 29 percent more than the overall average private-sector wage in Arizona. The bioscience sector also contributed $1.1 billion in state and local taxes in 2009, the most recent data available. That’s up 97.7 percent from 2002, when state and local tax revenue totaled $566.9 million.

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

6 8, 9 12 13 14 15 17

Calendar Briefs Real Estate & Construction Biz Buzz Editorial Classifieds

18 20-21 23 24 25 27

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CONTINUED FROM PAGE 3

Candidates come out to run for Congress Candidates are making their announcements now that Gabrielle Giffords has stepped down from her seat in the U.S. House of Representatives. The first Demcorat to step forward is twoterm state Rep. Matt Heinz, who announced his candidacy on Tuesday. On the Republican side Dave Sitton, marketing executive and TV play-by-play announcer, was due to make his announcement on Thursday (Feb. 2). Two other Republicans had already announced they are in the race: state Sen. Frank Antenori and Jesse Kelly, who ran against Giffords in 2010. Gov. Jan Brewer set April 17 as the date for the primaries in the special election to fill Giffords’ seat in Congressional District 8. The general election will be June 12. Who ever wins that election will serve out the remainder of Giffords’ term, which expires Jan. 13, 2013. This year’s regular elections will determine the representative to serve the next term in what will be the newly drawn Congressional District 2. There are some differences in the two. For instance, Kelly currently lives within the boundaries of District 8 but not within the boundaries of District 2. There is, however, no requirement that a member of Congress reside in the district they represent.

Commerce CEO to give back signing bonus Don Cardon, who is stepping down as president and CEO of the Arizona Commerce Authority (ACA), said he will give back $50,000 he was given as a signing bonus last year. Cardon announced last month he is resigning the job less than one year into the three-year contract he signed last August. Cardon issued a statement saying, “My leadership at Commerce has never been inspired by money. If it was, I never would have left my private sector involvements. However, to assure the focus of the ACA remains on what really matters, I will return the compensation I have received in the form of a signing bonus.” Cardon is the former director of the Arizona Department of Commerce which was disolved and morphed into public-private the Arizona Commerce Authority. His annual salary at the commerce authority was $300,000. He has agreed to stay on for up to six months while the authority finds his replacement.

finding accommodations for the thousands of people coming in from out of town and answering questions from the general public. The bureau also provides welcome kits to area businesses and prints 40,000 program guides with maps that are available at all show venues and in the MTCVB office, 100 S. Church Ave. in La Placita Village. Geographically, the shows are spread throughout the region, from the JW Marriott Starr Pass Resort on the west to the Doubletree Reid Park Hotel on the east, south to the Irvington Road area and north into Foothills resorts. Many of them are concentrated in or near downtown with large shows along Interstate 10 where parking is also available and Tucson Police and city agencies work to maintain traffic flow. “They have an active pressence on the frontage road and in busy areas,” Roxbury said. “At the city level, lots of thought goes into this. I’ll attend meetings with TPD, the city manager’s office and city council members whose wards are involved.” Roxbury bristles when she hears rumblings about the gem show moving out of Tucson. “A good response to the gem show leaving is, ‘which one?’,” she says. “The whole thing upprooting and going elsewhere is crazy considering the logistics. s. Most are doing shows elsewhere already. And almost 40 percent of the shows are locally owned and operated.” One local owner is Charlotte Mack, now in her 10th year running African Art Village, 1134 S. Farmington Road southwest of downtown. Mack lives and works full time in Tucson, but takes two weeks off from her job every year to participate. “I save up my vacation, and my husband, who is retired from the Air Force, helps ps me. I really, really enjoy doing the show,” said Mack. About 120 vendors set up tents at her show, many coming all the way from West Africa. “They sell everything from food to earrings, ngs, shea butter, African masks, African paintings and sculptures. ures.

NEWS BIZ FACTS

Tucson Gem, Mineral and Fossil Showcase Jan. 28–Feb. 12 Various locations Annual economic impact: $100 million, (2007 estimate) Expected out-of-town visitors: 55,000 www.visittucson.org/gemshow

Tucson Gem and Mineral Show Feb. 9–12 Tucson Convention Center Arena 260 S. Church Ave.

African Art Village

We’re open to the public, no credentials are required and prices are negotiable,” Mack stressed. Wrapping up the two-week event is the popular Tucson Gem and Mineral Show Feb. 9-12 at Tucson Convention Center, 260 S. Church Ave. This is the 58th annual event for the Tucson Gem & Mineral Society’s signature event, which began in the parking lot of an elementary school in 1955. Generally, a particular collection is headlined during the show. Past years have included exhibits from the Smithsonian, Library of Congress and Sotheby’s. Roxbury would not reveal the identity of this year’s featured exhibit, saying only that it will be unveiled during the grand opening. She did report that the 2012 theme is “Minerals of Arizona” in honor of the state’s centennial this month.

Hours: Daily 7:30 a.m. to 7 p.m. 1134 S. Farmington Road Southwest of Interstate 10 and Starr Pass Boulevard (behind Waffle House)

CORRECTION • A photo accompanying a story on h hotel t l property t values l iin th the JJan. 27 iissue showed h d th the existing i ti iinterior t i off a room att th the W Westin ti LLa Paloma Resort and Spa. Because the caption was not complete readers may have been left with the impression it was an example of a renovated room.

InsideTucsonBusiness.com

FEBRUARY 3, 2012

NEWS

County leaders push new economic development plan By Patrick McNamara Inside Tucson Business Pima County has begun to move on a broad new economic development plan that would include a package of municipal bonds, regulatory reforms and a renewed investment in tourism promotion. “The plan resembles many of the things the county is already involved in with regard to economic development,” Pima County Administrator Chuck Huckelberry told the supervisors. He also said the plan is being shared with chambers of commerce, other business groups and governmental jurisdictions within the region. The plan is for them to comment on it by March 15. Laura Shaw, vice president of marketing and communications at Tucson Regional Economic Opportunities (TREO), said her organization “applauds the efforts to establish priorities and guidelines related to the county’s role in economic development. We plan to disseminate it to key business leaders for review and comment, and provide feedback in the next few weeks.” Central to the plan are 39 specific recommendations, which include: • Purchasing property surrounding Raytheon Missile Systems facility south of Tucson International Airport to allow for expansion. • Partnering with the Tucson Airport Authority to expand aerospace- and defense-related employment. • Spending at least $123 million in bond-funded transportation improvements. • Maintaining county development and building fees at current levels through 2012. • Providing five-day turnaround of plan reviews and comments and that other local governments do the same. • Allowing up to five years at low interest rates for payment of wastewater hookup fees and impact fees. • Continuing the conversion of Kino Stadium, 2500 E. Ajo Way, into a multipurpose amateur sports venue. • Using half of hotel bed tax proceeds to revitalize tourism efforts. • Working with the University of Arizona to create a regional visitor center at Tumamoc Hill west of Interstate 10 and downtown Tucson. The proposed infrastructure spending could mean a boon for construction contractors who have fallen on hard times since the economic meltdown of 2008.

This Week’s

Good News Tech Park produces A new study of the University of Arizona Science and Technology Park — a.k.a the UA Tech Park — estimates it contributed at least $2.6 billion to the regional economy. Using figures from 2009, the study said the 40 tenants at the Tech Park, 9070 S. Rita Road, have nearly 6,500 employees that support more than 7,700 ancillary jobs in the region. The average annual wage of employees at Tech Park was more than $74,000. Meanwhile, governments received more than $70 million in tax revenues from business in the Tech Park. The analysis was conducted by the UA Office of University Research Parks.

The Tucson

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

“We are always way behind the eightball when it comes to roadway repairs,” said Ramon Gaanderse, executive director of the Tucson Utility Contractors Association. Gaanderse said the proposal appeared to outline some needed roadway improvement and infrastructure work for the region that would benefit businesses and residents. An aspect of the economic development plan that could be controversial lies with a proposal to sell bonds and increase the county’s indebtedness. “I would feel that way if we weren’t retiring our debt,” said County Supervisor Richard Elías. “We have been through terrible economic times and Pima County has done well to manage.” The bonding would fund numerous roadway improvement plans, many of which Huckelberry included in an August economic development proposal. The plan proposes better connecting the six emerging employment centers of Tucson International Airport and surrounding industries, University of Arizona Medical Center South campus, University of Arizona Science and Technology Park, UA Bioscience Park, Arizona State Prison complex on Wilmot Road and the Port of Tucson facilities. The roadway plans would include extending Alvernon Way south to Old Vail Connection road, Old Vail Connection Road from Nogales Highway to Alvernon Way, Kolb Road south of Interstate 10 to Old Vail, improvements to Corona Road between Tucson Boulevard and Alvernon, improvements to Wilmot Road from I-10 to Old Vail and upgrades on Country Club Road from I-10 to a proposed new main entry to Tucson International Airport.

The cost is estimated at $207 million. Voters would have to approve any future bond projects. University of Arizona economist Marshall Vest said the plan would inject money into a sector of the economy that could use the help while improving the regional infrastructure. “I can’t think of a better way for our county to spend money,” Vest said. District 1 Supervisor Ann Day cautioned that future bond elections could run up against roadblocks from the state Legislature. “There’s a number of proposals tied to future bond elections,” Day said. Elías said he was generally supportive of the overall proposal, however, he did have reservations over an aspect of the plan that would provide infrastructure and roadway improvements to help facilitate construction of a private prison in the county. “They’ve had far too many deaths of inmates in their facilities,” he said of Corrections Corporation of America, a private prison operator that has expressed interest in building a new penitentiary near existing state and federal facilities south of Tucson. Elías favored the proposal to delay payment of wastewater hookups, but said the proposal needs more details. “It’s probably not an in-depth enough conversation in this document,” Elías said. Many people have accused the county of using the high costs of hookups to the regional sewer system as leverage to curtail growth.

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

Pella gone for good It’s a fact now: Pella Windows’ 260,000 square-foot plant on the southwest side is no longer considered “mothballed” and has been put up for sale. In November 2008 when Pella announced it was shutting down the manufacturing facility, it said it would be kept ready to reopen once the housing market improved and production could resume. The company has given up on that option and made the decision last year to put the building up for sale. The Pella plant had only been open about three years. Although there had been plans to have a workforce of up to 450, Pella had 65 employees when the plant was shut down. The facility off West Valencia Road between Interstate 19 and Mission Road, was built and originally opened in 1990 as a manufacturing facility for Weiser Lock, which shut in 2003.

Super Bowl escape Got your plans set for Sunday’s Super Bowl? No? Well, the options are wide open. How about an afternoon tee time and dinner at a nice restaurant afterward? Usually at this time of the year when there are so many winter visitors in Tucson, getting on a golf course or into a nice restaurant can be tough. But people at golf courses tell Insider afternoon tee times are available. And the weather, while a few degrees cooler than normal, should be in the high 60s. And, while pizza places usually can’t crank out the pies fast enough on Super Bowl Sunday, restaurants say they’ve got plenty of room. Chances are, the wait staff can give you an update on the score, if you want to know.

6 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

NEWS PUBLIC NOTICES 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.

PUBLIC NOTICES Business bankruptcies, foreclosures and liens recorded in Tucson or Pima County and selected ﬁlings in Phoenix. Addresses are Tucson unless otherwise noted.

BANKRUPTCIES Chapter 7 - Liquidation Viva Global Marketing LLC, 2921 N. Grand Ave. #3, Nogales. Principal: Curtis Kraushaar, statutory agent/ member. Assets: $0. Liabilities: $137,089.31. Largest creditor: Robin Lucky, Rio Rico, $109,463.90. Case No. 12-01379 ﬁled Jan. 25. Law ﬁrm: Eric Slocum Sparks

Chapter 11 Business reorganization The Donald Wilton Hill FLP, LLP, 1556 N. Himosa Drive, Casa Grande. Principal: Donald W. Hill, trustee. Estimated assets: More than $500,000 to $1 million. Estimated liabilities: More than $100,000 to $500,000. Largest creditor: Not filed. Case No. 1201539 filed Jan. 27. Law firm: Altfeld & Battaile

FORECLOSURE NOTICES Glass Lites LLC 1425 N. Swan Road 85712 Tax parcel: 122-12-147B Original Principal: $795,000.00 Beneficiary: Wells Fargo Bank, successor by merger to Wachovia Mortgage, c/o Law Offices of David W. Greenman, San Clemente, Calif. Auction time and date: 11:30 a.m., April 24, 2012 Trustee: Michelle Ghidotti, Assured Lender Services Inc., 2552 Walnut Ave., Suite 110, Tustin, Calif. Natier LLC 6810 E. Broadway 85710 Tax parcel: 134-22-1180 Original Principal: $490,000.00 Beneficiary: Portia Faulkner, as trustee of the William S. and Dathel J. Lackey Revocable Trust dated October 1993, Arlington Heights, Ill. Auction time and date: 10 a.m., April 25, 2012 Trustee: Ronald M. Lehman, Gabroy Rollman & Bosse, 3507 N. Campbell Ave., Suite 111 Family Equity Fund LLC 515 E. Parker Point Place, Oro Valley 85737 Tax parcel: 224-29-005A Original Principal: $205,369.64 Beneficiary: Bank of the West, San Ramon, Calif. Auction time and date: 11:30 a.m., April 24, 2012 Trustee: Security Title Agency Inc., 3636 N. Central Ave., Phoenix

LIENS Federal tax liens Champion Recovery of Arizona and Joseph Sean Bowman, 5170 N. La Cholla Blvd. Amount owed: $14,070.92. GTL Properties LLC and Charles W. Testino Jr., 6650 N. Oracle Road, Suite 100. Amount owed: $4,376.51. Tron Mechanical Inc., 213 W. Flores St. Amount owed: $2,358.50.

Mercaba Enterprises LLC, 920 N. Swan Road. Amount owed: $1,370.80. Comprehensive Coding Solutions Inc., 1517 N. Wilmot Road 126. Amount owed: $34,971.29. Autoworld of Tucson Inc., 2411 W. Wetmore Road. Amount owed: $13,751.54. J.R. Tuttle Co., PO Box 41553, 85717. Amount owed: $14,037.85. Edward Avila LLC, 512 E. 28th St. Amount owed: $8,005.91. Diamond Jade Concrete Cutting LLC, 512 E. 28th St. Amount owed: $43,158.19. Lesco Optical and Ashdan Enterprises Inc., 225 E. Valencia Road. Amount owed: $67,454.29. Roof Coating Specialist Inc., 8383 E. 22nd St., Suite 111. Amount owed: $35,400.04. Systems Service Inc., PO Bix 8522, 85738. Amounts owed: $25,107.22; $22,179.98; and $1,637.15. A&V Automotive Inc., 3119 E. 45th St. Amount owed: $13,756.17. Cimaco Floor Service Inc., 3812 E. 37th St. Amount owed: $12,430.48.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) PR Communications Systems LLC, 9642 W. Ursa Way. Amount owed: $2,303.36. Diaz & Sons Produce LLC, 655 Second Ave., San Luis. Amount owed: $15,967.36.

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

PRL Glass Systems against Park Mall LLC and General Growth Properties. Amount owed: $49,672.65. E2 Power & Special Systems Group Inc. against Park Mall LLC and General Growth Properties. Amount owed: $89,923.26. Damage Control Builders and DC Restoration against Valencia I-19 Investments LLC. Amount owed: $256,011.75.

Release of federal liens Arizona Small Animal Clinic and the Cleo Corporation, 10 E. 31st St., South Tucson Law Ofﬁces Rafael F. Gallego PC, 4075 S. Sixth Ave. Select Development & Construction Inc., 5401 S. Arcadia Ave. Red Ant Inc., PO Box 1508, Sahuarita 85629 (318 E. Calle Aspa, Green Valley) Carter Pictures LLC and Page Carter, 1202 N. Venice Ave. W Boutique LLC and Sydney Duncan, 7049 N. Oracle Road CPE Consultants LLC and Raul F.G. Pina, 378 N. Main Ave. La Fresita Mexican Food St. Mary’s and Belen Garcia, 1450 W. St. Mary’s Road Katrina Group International LLC and Christopher J. Martin, 4505 S. Country Club Road American Metal & Plastics Inc., as alterego of Thomas M. and Carol L. Cook, 450 32nd St. SW, Grand Rapids, Mich. Gorman’s Assisted Living Home LLC, 8240 E. Keuka Court

Dan Lewis Inc., 2455 N. Campbell Ave. Amount owed: $18,423.29.

Robert T. Jacob PC, 6700 N. Oracle Road

Investment Builders LLC and Daniel Gullick, 7120 N. Edgewood Place. Amount owed: $16,073.94.

IMC Assembly LLC, 1727 E. Grandiosa St.

Go Pink LLC and Tamia J. Boule, 9800 E. Martin Drive

Beck & Beck PC, 1673 N. Placita Del Sol Chiquito. Amount owed: $18,224.96.

Dona’s Diner and LPM Cocina LLC, 115 W. Esperanza Blvd. E, Green Valley

Southwest Cars & Trucks Inc., 8340 N. Thornydale Road 110 323. Amount owed: $14,627.77.

Javier Valenzuela Agency and Francisco J. Valenzuela, 231 W. Ajo Way, Suite A

El Rey Del Elote and Vidal Lopez, 4762 S. 12th Ave. Amount owed: $2,747.15.

Preferred Concrete Pumping Inc., 3190 W. El Camino Del Cerro

Carl’s Mobile RV Repair Service Inc., 3435 E. Pennsylvania St. Amount owed: $33,024.00.

IMC Assembly LLC and Ruben D. Salcido Contreras, 1727 E. Grandiosa St.

Southwest Seafood Shoppes LLC, 4321 N. Bear Claw Way. Amounts owed: $275,947.93; $223,409.80; and $14,750.00.

Little Mexico Restaurant Inc., 6998 W. Irvington Road, Suite 3

Desert Pines Eldercare LLC and Ronald G. Cavelero, 17420 S. La Canada Drive, Sahuarita. Amounts owed: $303,340.97 and $14,897.03.

RWO Financial Inc., 203 N. Grande Ave.

Meadows Enterprises Inc., 1368 W. Roger Road. Amount owed: $4,384.35.

Cristina’s Cleaning Service and Celia Cristina Fontes, 1946 W. Waverly St.

Munchkins Preschool & Daycare and

Zeb-Tech Services and Al-Tech Inc., 3895 N. Oracle Road

Romanoski Glass & Mirror Co. Inc., PO Box 24280, 85734 Cattletown Steak House and John R. Kocis, 3141 E. Drexel Road

Marana doesn’t buy county’s figures on costs to run wastewater plant By Patrick McNamara Inside Tucson Business

charges, which would be used for capital expenses associated with the sewersystem infrastructure and to pay off the Marana officials say their costs to opernearly $20 million in debt the town inate the town’s newly acquired wastewater herited when it took over the treatment treatment aren’t the reality outlined by facility. Pima County Administrator Chuck HuckelMarana’s presentation notes that “sigberry, who said it would be five times more nificant additional rate increases may be than what it cost the county to run it. required” if impact fee revenue falls. “Mr. HuckelThe town’s fisberry is not part ccal 2012 budget THE NUMBERS of our process,” eestimates all imsaid Marana pact fees in Map Town Manager Marana impact fee revenue rrana would bring Gilbert Davidson. iin $2.2 million. 2012 $2.2 million (FY 2012 estimate) “I don’t know That’s a slight dewhere he gets his 2011 $2.4 million ccrease from fiscal numbers.” 22011 when impact 2010 $2 million Davidson ffees grossed $2.4 2009 $1.03 million said Marana inmillion. m tends to continue 2008 $2.25 million Before the locharging custom- 2007 $4.38 million ccal homebuilders of the Marana iing economy colWastewater Recllapsed in 2008, lamation Facility in the northern portion of the town took in significantly more in the town the same rate the county charged. impact fees. In fiscal 2007, impact fees Pima County had been charging the facilbrought in $4.4 million. ity’s 1,800 customers a base rate of $30 per Davidson said Huckelberry’s estimate month for 5,000 gallons of water for resithat the town will spend $2.6 million per dential customers. year to run the plant was exaggerated. The town’s proposed rate schedule for While the town hasn’t established the non-residential customers would be signifprecise annual costs of running the faicantly less than what the county charges. cility, but said they would be well below Under the town’s proposal, businesses county estimates. across most categories would pay $108 per “I can tell you that we have found month for 25,000 gallons use. County rates many inefficiencies,” Davidson said. vary from $109 to $364 per month. Marana hired WestLand Resources to The town council plans to vote on the operate the facility. It will pay $15,000 for proposed fee schedule later this month. the first month and $9,500 thereafter. The If approved, the rates would take effect in contract also provides for a 10 percent March. subcontractor fee. Marana plans to run the sewer system in The town took ownership of the conjunction with the town’s water departwastewater treatment plant from Pima ment. It will operate as an enterprise fund; County on Jan. 3 after successfully lobone that needs to generate its own operatbying state lawmakers for a law to allow ing revenue and not become a drain on the municipalities to take over county treattown’s general fund. ment facilities within their boundaries. To assure that, the town would need to Pima County is the only county in the see significant growth if the rates can restate that operates a wastewater system. main low or even the equivalent of what The law followed a lengthy legal battle Pima County charges. wherein a judge thwarted the town’s ear“Growth is also key to the success of this lier attempt to take the facility. scenario — without projected growth in these alternatives, additional rate increasContact reporter Patrick McNamara at es may be needed,” according to a town pmcnamara@azbiz.com or (520) 295-4259. presentation on the rate structure. The reason growth factors so high into the wastewater treatment fees is because of the development impact fees the town

InsideTucsonBusiness.com

FEBRUARY 3, 2012

REMEMBERING TUCSON Tucsonans who know him would agree, Ron Perry has enjoyed one hell of an adventurous live. For more than 40 years he collected what is considered by experts to be the finest museum - quality New Guinea artifacts. These days life is more quiet. He lives fairly anonymously with artist wife Carolyn Leigh near the Tucson Mountains. But earlier, it was obvious he must have inherited an adventure gene from his father Arthur Lewis “A.L.” Perry. During the Spanish-American War, A.L. Perry was Theodore Roosevelt’s bugler, sounding the horn for the Rough Riders during the famous battle at San Juan Hill, Cuba. In recruiting for the Rough Riders, Roosevelt had sent one of his men to Prescott to enlist 40 men who could ride and shoot. A.L. Perry was among them, mustered in and out of the Rough Riders in Santa Fe, N.M. After reenlisting to serve in the Philippines, A.L. Perry became a tramp printer before eventually becoming proprietor of a newspaper in Hotchkiss in MARY PEACHIN western Colorado. Illness forced him to the Veteran’s Hospital in Tucson where he died in 1934 and was buried in a soldier’s plot in Evergreen Cemetery. Ron Perry’s life of adventure began after he graduated from Tucson High School and then three-plus years at the University of Arizona. Perry and a fraternity friend in Sigma Alpha Epsilon went out to Hawaii to become surfers. Besides being surf bums, they also spent days diving with Allan Chang, who owned two of the modern demand regulators invented by Jacque Cousteau. It didn’t take long for the Army draft to catch up to Perry. He had just gotten married to a New York model but they opted for annulment before his deployment to Korea. After the Army, Perry returned to Hawaii where friends persuaded him to follow them in Australia, where he caused a bit senation with his slick Malibu surfboard. Perry got engaged to Barbara Hockey, but before the two of them got married, he took off on an adventure, leaving from Sydney on a freighter that took him to Jakarta, Indonesia, and continuing on by boat and train through Burma, the Himalayas and India. Perry arrived back in Tucson, the last leg riding with a truck driver who dropped him on Oracle Road. “I decided to return to the University of Arizona for a semester and learn to fly,” he said. In the meantime, Barbara joined him and, in 1960, they were married at Catalina Methodist Church. After honeymooning in Mexico, the couple returned to Australia. Barbara’s father owned a large sheep ranch — they call them

Photos courtesy of Ron Perry

How Ron Perry became a world-renown expert on New Guinea artifacts

ABOVE: Perry with a Kukuku warrior in New Guinea, 1974. RIGHT: Perry with natives and their artifacts in Angoram, New Guinea, in 1967.

“stations” in BIZ FACTS Australia — and Fred Buck, owner of the Polyneshe had built Perry’s New Guinea artifacts sian s Bar in Honolulu, was Perry’s four apartments are part of this year’s Tucson first fine art dealer. For about 10 in Surfers ParaGem and Mineral exhibit, for Perry’s artifacts could be y dise, a suburban sale until Feb. 10 in Room 130 years, found in the Art Primitff gallery f area along the of the Riverpark Inn, 350 S. Buck had opened in 1969 on San B Gold Coast in Freeway. Francisco’s Firsherman’s Wharf. F Queensland, Perry believes New Guinea’s Australia. finest artifacts are carved by The Perrys Sepik River natives. To get there required spent several years working on the sheep an immense amount of preparation for station, starting their family of two children, Perry. He would send money to a bank Michelle and Scott. They eventually tired of the in Wewak, New Guinea, building up the ranch life and move to a suburb of Sydney. account to $40,000. Then he would catch There, Flo Chang, sister of Perry’s Hawaii a ride on one of the weekly mission flights dive buddy Allan Chang, arrived in 1964 or book a charter to Angoram, one of the for a visit. She was a Cranbrook Academy patrol posts for the province of East Sepik. ceramic arts graduate whose instincts for Perry would stock up on tins of sarartistic exploring led her to the Territory of dines and other supplies, rent a motorPapua and New Guinea, a United Nations trust ized canoe with a native driver and crew territory then administered by Australia. She and set out for six weeks or so exploring brought back fascinating tribal artifacts that river villages. He would leave his purchases would have a life-long impact on Ron Perry. in each village’s government house. On his first artifact collecting trip to Sepik “I would tell the headman that I don’t River, Perry learned to deal with unfriendly nawant anyone to steal this stuff,” Perry recalls. tives, tough conditions and clouds of malaria“There were times when I had to hire a second carrying mosquitoes. But he continued, canoe and lash them together with cane joining several exploratory groups and getting then build a rough platform on top to stack to the point where he wanted to have a New my artifacts. In Angoram, I rented a storage Guinea base for storage. After being denied shed from Jim ‘Deadly Dudly’ McKinnon assignments to areas where natives carved while I built shipping cases using timber good artifacts, Perry quit his job as a surveyor from his sawmill. Then I would wait for a for the government Lands Department. coastal freighter to pick them up. Jim charged Meanwhile, wife Barbara stayed me a $1 a night to rent a small room.” in Sydney where she bought a relaA hero during World War II, McKintive’s elegant, harbors-side home. non had a colorful reputation. When he At one point Perry hiked with an Auswas elected to the House of Assembly, tralian patrol officer for 10 days through Perry took over running McKinnon’s mill New Guinea’s rugged Southern Highlands, and other businesses, which included south of the provincial capital, Mendi. The purchasing crocodile skins, operating gas group’s 25 carriers were prohibited from stations and running a general store. commercial activity so Perry, carrying $250, Meanwhile back in Tucson, Perry’s could buy only as much as he could carry. cousin, auto dealer Kelley Rollings, heard A shield that cost him $5 then would sell for of the New Guinea acquisitions and sent thousands of dollars in today’s market.

$1,500 to 10 carvings. Perry sent back 150 carvings, which prompted U.S. Customs officials to demand duty on them from Rollings. U.S. Rep. Morris K. “Mo” Udall arranged a government inspection of the artifacts that concluded they were original works of art and, thus exempt from duty payments. With his four cases of carvings, Rollings opened America West Gallery specializing in New Guinea artifacts and contemporary art. The gallery, which originally was on Park Avenue, was moved into Barrio Libre, where the Rollings family has done extensive work renovating historic buildings. Life has not always been easy for Perry. In the early years, he fought bouts of malaria. “Now, if I start the meds immediately, I am over it in three days, quicker than recovering from a cold,” he says. Perry remained in New Guinea after the territory won independence from Australia and became the independent nation of Papua New Guinea in 1975. He managed the government-run artifact center Village Arts and led boat trips on the Sepik River. In 1978, as manager of Village Arts, Perry accompanied a collection of New Guinea art to the American Museum of Natural History in New York. Anthropologist Margaret Mead served as guest of honor to open the exhibition. In 1979, Perry and Barbara were divorced. Following his return Tucson, Perry met artist Carolyn Leigh. In 1985, she joined him on a trip to Papua New Guinea. Six years later, they were married. They have continued their visits to South Pacific island nation. Perry’s reputation and knowledge about Papua New Guinea artifacts is world renowned. And it continues. This year, for example, during Tucson’s gem and mineral show his artifacts are being exhibited by one of their dealers, Joe Maierhauser — whose family owns Colossal Cave — at the River Park, 350 S. Freeway. They are in Room 130 until Feb. 10. “We don’t advertise our artifacts,” Perry says. “Collectors know about them.” A bonus for anyone paying them a visit, is that they will have their latest book, Art Dealer in the Last Unknown Ron Perry and New Guinea Art the early years: 1964 - 1973, by Carolyn Leigh and Ron Perry. They have also published New Guinea Tribal Art eGuide providing quick info about New Guinea art and art areas with links to more information. The books are available from dealers, at Antigone Books, 411 N. Fourth Ave.; Etherton Gallery, 135 S. Sixth Ave. or online — www.art-pacific. com/ — from Perry’s and Leigh’s website. Unfortunately, Perry himself won’t be at the show. “Carolyn keeps me away from our Riverpark Inn Gem Show display because folks become so intrigue listening to my collecting adventures they are distracted from buying,” he said. “I love talking about Papua New Guinea.”

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

8 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

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10 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

SALES

SALES JUDO

ARM your revenue producers - How to attract, retain and movitvate them How does a business attact, retain and motivate revenue producers? Entire books have been written on the subject so my goals in this and some upcoming columns is to focus on they key pressure points that result in the best outcomes for revenue producers and their managers. For the purpose of these pieces, I’m calling all of us — sales executives, account representatives, sales engineers, fundraisers, business development managers, brokers — who are responsible for generating revenues as “producers.” Those of us who are their bosses — sales managers, managers of development, executive directors, managing partners, business owners — are “managers.” Let’s start by building a simple model for what it takes to attract, motivate and retain producers. In subsequent pieces I’ll provide working examples of how to “make” and “break” producers. If you’ve got some examples of best and worst practices, please send them to me. I’ll share the most risible and instructive ones while protecting the identities of all concerned. In the final piece I’ll present elements of sales agreements and contracts that help or hinder relationships with producers. Let’s start with a simple model describing what it takes to attract, retain and motivate — in other words, ARM — your revenue producers: ARM = f (Job Fit, $ Comp., Recognition, Management Style, Support, Culture, Wild Card) On the left side of this equation, ARM also stands for productivity. What’s productive? On a large scale, the variable contribution or gross margin on the revenues producers generate should pay for all of the organization’s fixed expenses and generate a surplus or a pre-tax profit. They do this by generating unit volume and by holding pricing and gross profit margins. The “f” after the equal sign means that ARM is a function of six, more-or-less independent, variables, the first of which is “Job Fit.”

While “Job” Fit contains résumé elements like relevant work experience and education, it means much more than that. Let’s face it, there are plenty of so-called SAM WILLIAMS producers with relevant job experience and mighty fine résumés who just can’t seem to produce either because they haven’t learned the right techniques or because, more frequently, they lack the right attitude and aptitude. “$ Comp” means all forms of monetary compensation: base pay, benefits, insurance, commissions and bonuses. As such, $ Comp addresses the first two levels of Abraham Maslow’s pyschological theory of the hierarchy of needs. After all, $ Comp should provide producers with sufficient creature comforts so they are not preoccupied with either basic or safety needs. $ Comp is also tied to the size and makeup of sales territories and commission and bonus plans. But it’s important to note that, while $ Comp is necessary, it isn’t sufficient to build high values of ARM because, as soon as the first two levels are satisfied by $ Comp, the next level, psychological needs, must be addressed as well. The next four variables fall into the next two levels, “psychological needs” and “self-actualization.” Many producers, especially extroverts, regard recognition as an almost tangible form of compensation. External recognition often involves public praise at meetings or in internal publications, lapel pins for the President’s Club, vacation trips with spouses, plaques, parking spaces or gift cards for dinner. Perversely, many introverts cringe at public recognition, and prefer other forms of reward, which I’ll cover later. “Management Style” stands for the ways managers interact with their subordinates. It’s

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SI O T E E FR

the reason behind most voluntary terminations and for the most highly loyal and productive teams. For example, assertive and extroverted producers thrive with democratic managers but leave en masse when burdened with directive and authoritarian managers. Another element contained in Management Style is “opportunities for professional growth” such as promotions or rotations made possible by managers. “Support” stands for the resources needed from the organization that help producers acquire and retain satisfied customers. Lack of it is the second most common cause for voluntary terminations of producers. Professional training is also an element of Support, provided it’s good. Good customer relationship management software and lists of qualified leads are others. Customer service is an extremely important element. For example, if your producers receive most of their $ Comp through ongoing residual commissions from clients, and a large number of these customers switch to competitors due to poor customer service, it’s an uphill battle to maintain their morale and to retain them. Not only does their $ Comp decline, but many are angered or mortified by poor service. Their productivity slips as they begin to look elsewhere. “Culture” stands for the overall behavior of and “atmosphere” within the organization. Does it make decisions from the bottom up in collaboration with team members or from the top down by means of authoritarian cramdowns? Has the legal department crafted sales agreements that contain onerous provisions? Is the company profitable or unprofitable? These also help define organizational culture. “Wild Card” stands for lots of possibilities: Producers are wooed away by competitors, change careers, relocate when a spouse or partner moves, wins the lottery, becomes ill, are injured or are called up by their National Guard unit. They may fit into any of the levels of Maslow’s hierarchy. If you have been a producer or a manager long enough, you will have experienced all of these, and more.

So, how do you tie all six variables together? In the simplest sense, each one might have only two values, “1” or “0” where 1 stands for a sufficiently high enough amount for a producer to be attracted, motivated and to remain and 0 is insufficient. Remember, if the operators between each variable were all multiplication signs, a 0 in any one variable would produce an ARM value of 0 even if each of the other five were all 1s. For example, if a producer is OK with $ Comp, meaning a value of 1, Recognition, Support, Culture and there is no Wild Card, but she or he is really unhappy with a manager, with a value of 0, is that person likely to be productive and stay? Probably not for long. I’m not convinced that everything is this black-and-white and if this binary approach works with all the combinations of the other variables. I have seen a lot of producers stick it out for quite a while when their values for Culture or Support were pretty low. It’s easier for me to believe the values for each variable in this equation should range from 1 to 10 and should be added together. The highest possible ARM score would be 60. Scores of 50 to 60 would represent highly satisfied and motivated producers; scores around 35 might represent producers at risk, and scores of 30 and below might represent producers who are either tiptoeing out or slamming the door. But here’s an interesting bit. The value for each variable depends on the type of producer and his or her point of view. There are four general types of producers: Hunter/ prospectors, account representatives, technical and professional sales reps, sales engineers and proposal writers. In the next column on Feb. 17, I’ll explore how each type of producer needs to be ARMed differently.

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

B! A T R E T LET S W E N HE T K C I L ND C

MA O C . S S INE S U B N CSO U T E D Are you interested in business I S N I O T news everyday? SO ARE WE! GO : P U N G

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InsideTucsonBusiness.com

FEBRUARY 3, 2012

ON GUARD ON GUARD

Oh the social lessons learned when internal email goes viral Public relations gaffes have a long history of embarrassing and sometimes destroying companies. One example that comes immediately to mind are the multiple callous sounding statements BP’s former chief Tony Hayward gave to various media outlets in the wake of the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. When a company of BP’s size has a PR faux pas, it stands to reason it will make international news — especially when the news event itself was already of international scope. The story that follows demonstrates that any size company can find itself in the middle of a public relations nightmare, and proves that seemingly private communications between a business and its customers can easily be broadcast to millions of people with a few short keystrokes. Last December a company called N-Control, which sells video game controllers, was getting ready to release a new, modified PlayStation controller attachment designed to help disabled gamers reach all the buttons on the controller. N-Control hired a public relations firm called Ocean Marketing to orchestrate the product’s release, which included fielding inquiries from consumers who had pre-ordered the controller. N-Control was not able to ship the attachment by the advertised Nov. 8 date to consumers who had pre-ordered it. When of the customers contacted Ocean Marketing to inquire about the situation, the soon-to-be public relations firestorm ensued. The consumer, who identified himself as “Dave,” emailed Ocean Marketing President Paul Christoforo to express his displeasure about not being notified the attachment he ordered wouldn’t arrive on time and to inquire as to when he might expect it to arrive. Christoforo responded back simply, “Dec 17,” without providing either an explanation or an apology for the delay. As Dave pressed for more information about his order, Christoforo’s emails took on a more hostile tone. In a long email riddled with grammatical, spelling and punctuation errors Christoforo told Dave to “put his big boy hat on” and that “no one is special including you or any first time buyer,” before ending the email by threatening to put Dave’s controller “on eBay for 150.00 myself.” At this point Dave, understandably upset, started copying the editors of news

KIM STATES

and video game websites on his subsequent emails to Ocean Marketing. The emails culminated with a testy exchange between Christoforo and Mike Krahulik — the owner of a video game website

called Penny Arcade. Krahulik posted the entire email thread on Penny Arcade, and it went viral overnight: • Within hours the thread was quickly republished on dozens of video game blogs. • Within 24 hours the company’s new controller accumulated almost 300 one-star reviews on Amazon and it became the most popular discussion thread on Reddit.com, an Internet message board frequented by millions of gamers from all over of the world. Within days cable news websites also picked it up. • Soon after, spoof YouTube videos started appearing — the most popular of which currently has over 680,000 views. Customer outrage overwhelmed N-Control, which despite promptly firing Ocean Marketing, was not able to contain the damage to its brand. While this episode is an extreme example of how poor customer service can turn into a PR disaster, Eileen Brown, a “social business” reporter for ZDnet.com, says there are some “social lessons” to learn for all businesses operating under the rules of new media. Some of Brown’s social lessons include: • Don’t be shocked if a private email exchange ends up on the Internet. An email exchange is not private if it is sent outside of your corporate boundary. • Email is not even private if it remains within corporate boundaries. Even if your internal email is protected by Digital Rights Management systems, photographs can still be taken of the email on the screen itself and published online. • Late apologies mean nothing. Apologize for your mistakes early. Be aware that the damage may already have been done. • Be aware that flippant comments can be misconstrued. • Be aware that your words can mobilize a community to support you — or rail against your actions. The biggest social lesson is that N-Con-

TUCSON BBB ACTIVITY REPORT JANUARY 2012 Top 10 most complained about industries

Complaints

Settled

None

Portrait photographers

Plumbing contractors

50%

Cable and satellite TV

100%

Air conditioning contractors and systems

100%

Soaps and detergents

None

Martial Arts supplies and equipment

None

Mattresses

100%

Restaurants

67%

Computer service and repairs

67%

Roofing contractors

10.

Top 10 most inquired about industries

100%

Inquiries

Roofing contractors

Auto repair and service

989

Air conditioner contractors and systems

948

Used car dealers

912

Plumbing contractors

869

Travel clubs

842

General contractors

684

Property management

537

Dentists

477

Correspondence schools

437

10.

1,012

Source: BBB of Southern Arizona

trol’s “story” is no longer about an innovative, new device meant to help the disabled play video games, which is a great story. Instead, their story is about customer service gone terribly wrong because they didn’t know who was serving their customers, their company and their brand until it was too late.

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

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12 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

MEDIA

Cumulus starts making changes at Tucson radio stations By David Hatfield Inside Tucson Business It has been nearly five months since the merger of Citadel Broadcasting into Cumulus Media was finalized and it now appears as if the arm of the new corporate ownership has finally reached the company’s Tucson stations. Up until now, Cumulus has focused most of its changes in larger markets. For listeners, the first change in Tucson may involve Bob KSZR 97.5-FM which this week has been running teaser announcements saying something new is coming today (Feb. 3) at noon. Also, advertisers have been told the station will not air any commercials today leading up to noon. Back in November, I wrote about one theory making the rounds in local media circles that Cumulus would switch formats on 97.5-FM to one that would be more directly competitive with Clear Channel’s highly-rated top 40 hit music format on KRQ 93.7-FM. The station wouldn’t necessarily get higher ratings than KRQ but would take away enough audience to dent Clear Channel’s overall share of advertising revenue in the market. For their part, people at Cumulus were keeping mum on what’s up. The adult contemporary music station has been using the “Bob” moniker since November 2004. In the meantime, Cumulus has done some reorganizing and changed up some staff titles locally. Ken Kowalcek is now Tucson market manager for the five-station cluster. His title had been general manager. Keith Rosenblatt now carries the title general sales manager instead of director of sales. There also have been changes in reporting procedures for the local sales staff.

In addition to KSZR, Cumulus’ Tucson stations are KIIM 99.5-FM, K-Hit KHYT 107.5-FM, the Source KCUB 1290-AM and KTUC 1400-AM.

Names in news KGUN 9 viewers have missed seeing chief meteorologist Erin Christiansen on the air the last couple of weeks due to the fact that she’s contacted an acute case of Valley Fever. Experts say at least one-third — and probably more — of us in this area get Valley Fever but few ever know it. The fungal infection of the lung can be quite serious and can easily keep a person out of commission for four weeks. Christiansen has been updating her Facebook page saying she was making progress in her recovery but no target date on when she might return to the air. A long-time KVOA 4 viewer called to ask what has happened to veteran reporter Sandy Rathbun. Station insiders say she is still employed at KVOA but out on some sort of long-term disability situation. Station officials wouldn’t talk. Rathbun has worked in TV news in Tucson since the 1970s, first at KOLD 13 before going to KVOA in 1986. Garret Lewis, host of the “Morning Ritual with Garret Lewis” on KNST 97.1-FM/790-AM, has been named program director of the Clear Channel news-talk station. The position was previously held by Chris Patyk, who was let go at the end of October as part of a larger shake-up. Patyk was also a morning personality on what was the Mountain before it changed branding to My 92.9 KMIY 92.9-FM. In addition to his promotion, Lewis has signed a two-year contract extension to remain as the morning host.

From Start to Finish. “We salute Grubb & Ellis, who shares TREO's vision of a stronger, more diversified economy. Leveraging Southern Arizona's strengths in bioscience, innovation and top-tier research is critical to achieving our economic goals.” Joe Snell, President and CEO, Tucson Regional Economic Opportunities, Inc. (TREO)

When the pressure’s on, you want a real estate partner you can count on. Grubb & Ellis supports it clients throughout the entire process - no matter what obstacles. As a recognized leader in the commercial real estate industry, we build long-term relationships with our clients and deliver customized, effective solutions to help them meet their business objectives. By providing the highest level of specialization, market knowledge and strategic thinking, our professionals implement creative strategies that turn real estate challenges into successes.

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Last week, I neglected to include one of the winners of special awards from American Advertising Federation Tucson. Ken Godat, of Godat Design, will receive the 2012 Advertising Professional of the Year Award at the Addys Feb. 18 at the Fox Tucson Theatre, 17 W. Congress St. Buy tickets online at www.aaftucson.org/.

days. The real benefit — for Tucson, anyway — comes from the exposure around the world, including 23 countries in Europe, 12 in Asia, the African continent, the Caribbean, South and Central America, the Middle East and Australia, New Zealand and Canada.

Super Bowl is big

KWFM is back

There is no bigger event in media than the telecast of the Super Bowl. Bill Shaw, president and general manager at KVOA 4, says the station is backing up its operations with redundant commercials and even manning the station’s transmitter for the telecast Sunday (Feb. 5). There was that porn incident three years ago the last time KVOA telecast the Super Bowl but as we all know, now that originated with an employee at Cox cable. In any event, pregame coveage of Super Bowl XLVI is scheduled to start at 11 a.m. Sunday on KVOA with kickoff scheduled for 4:20 p.m.

Tucson’s heritage radio station call letters KWFM are back in use, this time at 1330-AM, which picked them up from the Federal Communications Commission and dropped KJLL and branding as the Jolt. As KWFM, the station is calling itself “The Star,” though there have been no changes in the mostly talk format. It’s a far cry from the KWFM that “rocked Tucson” in the 1970s and 1980s on 92.9-FM but then again that has been the case since 2003 when Clear Channel moved the call letters to 1450-AM. That station dropped the call letters last November as part of a format change. KWFM 1330-AM made the change Jan. 22. It had been KJLL the Jolt since February 1999.

Dove Mountain’s close-up Southern Arizona’s window to the world is scheduled to be on display from the Ritz-Carlton Golf Club, Dove Mountain, as the Golf Channel and NBC are gearing up for 31 hours of live coverage of the Accenture Match Play Championship. The Golf Channel will show the opening round of 32 matches on Feb. 22 from 10 a.m. to 4 p.m., and then the second and third rounds from noon to 4 p.m. Feb. 23 and 24. The two networks, both of which are owned by Comcast, will share coverage on the weekend with the Golf Channel coverage starting up at 7 a.m. both days. NBC’s coverage runs from 2 to 4 p.m. both

Media, not radio Although its 850 stations make it the largest operator of radio stations in the U.S., Clear Channel Communications Inc. has renamed its radio division Channel Media and Entertainment, from Clear Channel Radio.

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

InsideTucsonBusiness.com

FEBRUARY 3, 2012

EXPENSE ACCOUNT MEALS & ENTERTAINMENT

Some different ways to celebrate Valentine’s Day If you’re looking for a twist on are available for an additional celebrating Valentine’s Day with your $20. Regardless of whether Valentine, then check out the “Room you choose the wine pairings, for Two” promotion at Loews Ventana diners will also enjoy a glass of Canyon. It’s available only on Feb. 14, a bubbly for a toast. Tuesday night, and includes overnight • Casino del Sol, 5655 accommodations and a five-course W. Valencia Road — www. in-room dining menu that includes a casinodelsol.com — 1-855champagne toast. 765-7829 Items on the menu include fresh MICHAEL LURIA oysters, Caesar salad, beef tenderloin, chocolate fondue and a cheese course. If enjoying a night out with your significant “She’s expecting you to take her to dinner,” other is more important than the date on the said Executive Chef Ken Harvey, “but exceed calendar, celebrate Valentine’s Day a night her expectations this year and surprise her with a quiet evening alone at the resort — along with early with an all red wine dinner at Elle Wine Bistro on Feb. 13, a Monday. The special fourfour-diamond quality room service.” course dinner will feature four different wines The price for the “Room for Two” package (each a different varietal) from four wineries. is $349 to $379, depending on the room. Make In addition to the four courses, look for a reservations either online or call 1-800-234special surprise “fifth course” from proprietor 5117 and use promotion code “TWO.” Jeff Fuld. If staying the night isn’t an option, you can The cost of the dinner is $60 per person take your date to the resort’s Flying V for a fiveplus tax and gratuity. There will be a limit of 20 course prix-fixe menu at $125 per couple. guests. • Loews Ventana Canyon, 7000 N. Resort If you must dine out on Feb. 14, Elle will Drive — www.loewshotels.comVentana-Canoffer its regular menu in addition to nightly yon-Resort — (520) 299-2020 specials. Unlike many restaurants, Elle won’t force you to order off a prix-fixe menu. • Elle Wine Bistro, 2970 N. Campbell Ave. — www.ellerestaurant.com — (520) 327-0500 The hotel at Casino del Sol has been open for three months now and for its first Valentine’s Day, is offering a play, stay and dine opportunity. Contact Michael Luria at mjluria@gmail. The casino’s sweetheart dinner package com. Meals & Entertainment appears weekly in includes a three-course meal at PY Steakhouse Inside Tucson Business. and a room in the casino’s hotel for $199, plus gratuity for dinner. Wine pairings with the meal

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INSIDE TUCSON BUSINESS

ARTS & ENTERTAINMENT

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Your Hometown Home Page Just Got Wheels!

Tucson has rarely looked better on the silver screen than it does in the new film “Goats.” The movie, which stars David Duchovny and Vera Farmiga, is based on the 2000 coming of age book of the same name written by Mark Poirier, who grew up in Tucson. The movie was partially filmed in Tucson last February. With a strong premiere screening last month at the Sundance Film Festival, as well as a great local screening Jan. 26 at the Loft Cinema, this is a film to keep your eyes on when it gets a wide release, which should happen later this year. A true love letter to Tucson and a quirky, humorous story of family and growing up, “Goats” is a great film.

More film With Academy Award nominations now out, Tucson film goers have a few high-profile films to catch up on before the Oscars are handed out Feb. 26. Among them are “Albert Nobbs” and “Iron Lady,” which feature amazing performances from Glenn Close and Meryl Streep in lead roles.

Music Guitarist Leo Kottke returns to Tucson for concerts at 8 p.m. Feb. 9 and 10 at the Temple of Music and Art, 330 S. Scott Ave. The show is being a production of promoters, In Concert! Tucson, a nonprofit for contemporary, folk, and world music. Buy tickets online at www.inconcerttucson.com.

Dance The National Dance Company of Colombia will be at Centennial Hall, 1020 E. University Blvd. on the University of Arizona campus, at 8 p.m. Saturday HERB STRATFORD (Feb. 4) courtesy of UApresents. With its unique blend of lights, sound and dance, the performance transports viewers to the South American country’s climate of energy and excitement.

Art The Tucson Museum of Art, 140 N. Main Ave., has two exciting exhibitions on display through June. First up is “Tesoros del Pueblo,” which translates to treasures of the people, and is composed of objects from the museum’s Latin America collection, many of which have never before been on display. The second show at the museum is “Frida Kahlo: Through the Lens of Nickolas Murray.” This photography show is composed of portraits of the artist by the photographer who documented her over many years.

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

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InsideTucsonBusiness.com

FEBRUARY 3, 2012

PROFILE

Small architectural firm Fors is making a big name for itself The small firm of Fors Architecture + Interiors is making a big name for itself with a comprehensive approach to architecture thatâ&#x20AC;&#x2122;s culminated in a number of high-profile projects in recent years. Two recent accomplishments can be seen from the front window of the firmâ&#x20AC;&#x2122;s new downtown office at 245 E. Congress St., where the new bar and lounge Playground and the nearby Hub Restaurant and Ice Creamery stand respectively at 278 and 266 E. Congress St. Both businesses utilize unique architectural and interior-design elements that showcase what the Forsâ&#x20AC;&#x2122; owners Miguel Fuentevilla and Sonya Sotinsky are capable of. The crowds that flock to both places are also evidence that the spaces they create resonate with those who visit them. â&#x20AC;&#x153;They make spaces that are both functional and beautiful and they keep it within budgetâ&#x20AC;? said Kade Mislinski, owner of Playground and Hub. â&#x20AC;&#x153;They work with you and not for you, and that makes all the difference.â&#x20AC;? Other restaurants in the firmâ&#x20AC;&#x2122;s portfolio include Downtown Kitchen + Cocktails, 135 S. Sixth Ave.; Noble Hops Gastropub, 1335 W. Lambert Lane, Oro Valley; the Abbey Eat + Drink, 6960 E. Sunrise Drive; Tavolino Ristorante Italiano, 2890 E. Skyline Drive in Plaza Colonial; Sushi Garden, 3048 E. Broadway in Broadway Village; and Fox Restaurant Concepts eateries including Zinburger, NoRTH - Modern Italian Cuisine and Blanco Tacos + Tequila. â&#x20AC;&#x153;I think a lot of it is that the projects that weâ&#x20AC;&#x2122;ve worked on have brought success for our clients, and people like to hang out in the spaces,â&#x20AC;? said Sotinsky. â&#x20AC;&#x153;We believe people are affected by their physical environment and we want them to have nice places to be in.â&#x20AC;? Fors is currently working on a new Sir Vezaâ&#x20AC;&#x2122;s Taco Garage, opening at 220 W. Wetmore Road at Tucson Mallsoon, as well as other projects ranging from a two-story athletic facility to a new food court for a local casino. Their most visible work has been the restaurants â&#x20AC;&#x201C; theyâ&#x20AC;&#x2122;ve designed about 70 of them, including spots in Phoenix and California â&#x20AC;&#x201C; but they also do residential projects as simple as rearranging living rooms or as complex as building lavish homes. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve always been really focused on the comprehensive package, on finishes and details and getting into every aspect of the project,â&#x20AC;? says Sotinsky. â&#x20AC;&#x153;In Tucson we got kind of lucky because people were interested in creating whole experiences, and thatâ&#x20AC;&#x2122;s something we did in the past and something we both do really well.â&#x20AC;? Fuentevilla and Sotinsky met at the University of Arizonaâ&#x20AC;&#x2122;s College of Architec-

ture more than 20 years ago and later married. They worked for for several architectural firms in California before moving back to Tucson in the late 1990s and founding the firm in their home. Fuentevilla says designing restaurants is especially challenging, but rewarding. The design must be both functional and interesting enough to bring people back multiple times, something the firm has become especially adept at through the years. While word continues to spread about the firmâ&#x20AC;&#x2122;s accomplishments, Fuentevilla and Sotinsky are looking toward larger opportunities such as hotels and shopping centers. Theyâ&#x20AC;&#x2122;re also hard at work on several undisclosed projects that should get underway downtown and elsewhere in the coming year. â&#x20AC;&#x153;I think that one of the things that makes us really happy is that weâ&#x20AC;&#x2122;ve been able to play even a small part in the revitalization of downtown,â&#x20AC;? said Sotinsky. â&#x20AC;&#x153;There are all these little neighborhood centers, like Plaza Palomino and Broadway Village, that we would love to work on,â&#x20AC;? adds Fuentevilla. â&#x20AC;&#x153;We want to do projects everywhere, because that gives us an ability to affect more of Tucson.â&#x20AC;?

BIZ FACTS

Fors Architecture + Interiors

Adam Borowitz photo

By Adam Borowitz Inside Tucson Business

245 E. Congress St. www.forsarchitecture.com (520) 795-9888

Principals Miguel Fuentevilla, left, and Sonya Sotinsky at the new offices of Fors Architecture + Interiors.

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16 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

FEBRUARY 3, 2012

PEOPLE IN ACTION

APPOINTMENTS The Community Foundation for Southern Arizona (CFSA) has appointed Mari Diffley as chief operating officer. She will be responsible for managing finance, IT and work flow systems for the organization. Diffley has more than 25 years experience in operations and finance including CPA work in New York. She has an MBA from the University of Arizona and a BBA in business and accounting from Pace University in New York City. D.J. Green, MD, has been named president of the Tucson Surgical Society. Green is a board-certified

surgeon who has practiced medicine in Tucson since August 2011 and is currently practicing Trauma and General Surgery at University Medical Center and UMCSouth Campus. Green earned his medical degree from the University of Washington and completed his residency in general surgery at the University of Arizona Affiliated Hospitals and a fellowship in surgical critical care from the University of Southern California, Los Angeles. He also was on active duty in the U.S. Navy for 10 years. Dan Dickhart, director of sales and marketing for Omni Tucson National Resort, has been selected as a Davis-Monthan Air Force

D.J. GREEN

RJ CIRELL

TONY POE

BETH SCOTT

{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. Base Honorary Commander. The DMAFB Honorary Squadron Commander Program was established to encourage experiences and friendships between key members of the civilian community and the D-M military community. It is intended to foster positive, supportive relationships between the base and the Tucson community.

AWARDS RJ and Justin Cirell of Northwest Mutual have earned the Pacesetter awards. To qualify for the award they sold more than 40 policies in the first six months of the business. They finished with 43 policies. Assistance League of Tucson applauds the accomplishments of its senior high school

Assisteens, who will complete their fourth year of community service. An auxiliary of Assistance League of Tucson, Assisteens is a membership organization that a student’s joins in her freshman year and continues the connection throughout her high school career. The seniors being honored this year has collectively worked more than 300 hours in the Assistance League of

Tucson’s thrift store, made more than 100 blankets for Project Linus and have donated more than 750 additional hours to Tucson through their community service. The honorees are: McKenzie Jerman, Tess Terry, Sarah Slepian, Jessica Haworth, Olivia Anderson, Ciana Gastelum, Lauren Amos, Paige Brei, Libby Grob, Lauren Evans, Jennifer O’Neal, Lea Theodorou,

Courtney Amos, Madison LaMaster, Kalli Spackeen, Erica Capin and Marti Sollenberger. NEW HIRES Local home financing industry veteran Tony Poe hired as vice president of Fairway Mortgage’s branch in the Catalina Foothills. Poe comes to the company after several years of service as a home mortgage consultant with Long Mortgage. Poe graduated from the University of Arizona with a bachelor of arts degree in business administration. He has received several prestigious awards throughout his career, including the “Top Home Mortgage Consultant”

UP&

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COMERS 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.

San Miguel Cristo Rey High School has hired Beth Scott as director of its corporate internship program. Scott served as the director of Prescott College in Tucson and at the State University of New York at Geneseo and the University of Rochester training student teachers and placing them in field assignments. She has a master’s in linguistics, a Certificate of Advanced Study in Educational Administration and a doctorate in Educational Leadership.

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18 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

CALENDAR SPECIAL EVENTS

Free,rsvp_required

itSMF USA â&#x20AC;&#x201C; IT Service Management meeting A networking and knowledgesharing event addressing ITILâ&#x20AC;&#x2122;s best practices Monday (Feb. 6) 1 to 4 p.m. Desert Diamond Casino 1100 W. Pima Mine Road Contact: itSMF USA Arizona Local Interest Group arizona@itsmf.net www.itsmfusa.org

An Evening with Noam Chomsky: â&#x20AC;&#x153;Education for Whom and For What?â&#x20AC;? 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 Tucsonâ&#x20AC;&#x2122;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

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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 ďŹ rst-come, ďŹ rst-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 BrieďŹ ng 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

{YOUR EVENT HERE} A complete calendar listing is at

InsideTucsonBusiness.com

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

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

InsideTucsonBusiness.com

FEBRUARY 3, 2012

NEWS

Housing construction is shifting to apartments By Roger Yohem Inside Tucson Business

Otis Blank photo

Burned by toxic home loans that ruined their credit, foreclosed-upon residents are driving an epic shift in the regionâ&#x20AC;&#x2122;s housing market. For the first time since 1986, building permits for multi-family projects in 2012 will outnumber traditional single-family homes. â&#x20AC;&#x153;At least 43,000 Tucson-area residents have a bad taste of home ownership. They have been foreclosed on, thrown out of their homes, had to move or had their financial situation ruined. They do not want to go through that again and do not consider home ownership a good investment,â&#x20AC;? said John Strobeck, owner of Bright Future Business Consultants. â&#x20AC;&#x153;They want a product that is more worry-free.â&#x20AC;? The construction of those worry-free homes could number 2,000, according to Jim Marian, partner in Chapman Lindsey Commercial Real Estate. About 30 percent of the new units will be for student housing â&#x20AC;&#x153;and that will not meet the market demand out there.â&#x20AC;? Last year, apartment developers bought over $8 million of land. The largest deal was $4.15 million to develop 206 units at the District, 248 E. Fifth St. near the University of Arizona, Marian said. The second-biggest purchase was by HSL Properties for $3.8 million in Maranaâ&#x20AC;&#x2122;s Dove Mountain. The company plans to build 272 units there on 20 acres. In contrast, only 1,500 detached, singlefamily new home permits are projected for 2012, said Strobeck. Both real estate experts made their predictions before 200 attendees at Strobeckâ&#x20AC;&#x2122;s 15th Annual Housing Market Review, Analysis & Forecast Jan. 27 at the Westin La Paloma Resort. They were joined by Marshall Vest, economist at the University of Arizona. The builders, developers and investors at the forum were told they will struggle for market share if they are still offering traditional single-family homes. â&#x20AC;&#x153;Competition to the normal housing product is here now,â&#x20AC;? Strobeck said. In 2011, construction permits were issued for 880 rental homes. Four builders are active in this market: MC Companies, Centro Nuevo, Miramonte Homes and HSL Properties. Building permits for single-family homes totaled 1,438, the lowest since 1967. New home sales reached just 1,260. â&#x20AC;&#x153;That is a pretty crummy year. No, to be honest, itâ&#x20AC;&#x2122;s a terrible year,â&#x20AC;? Strobeck said. D.R. Horton Homes had the most closings during the year at 227, followed by Robson Communities at 157. Rounding out the top five were Richmond American Homes at 156 sales, Pulte at 146 and Lennar at 136.

Although 2011 was â&#x20AC;&#x153;a crummy yearâ&#x20AC;? for housing, John Strobeck predicts that competition and fewer foreclosures will impact the market going forward.

Although foreclosures continue to wrack the market, the experts see that trend starting to turn. By the fourth quarter this year, most of the remaining high-risk, five-year adjustable rate mortgages will have reset. At that point, new foreclosures should dip to a relative trickle. For the entire year, 6,000 to 8,000 new notices are feasible compared to 9,433 in 2011. â&#x20AC;&#x153;We have just suffered through the longest and deepest recession and also the weakest recovery since the Great Depression. There is some good news, the economy actually is moving in the right direction once again,â&#x20AC;? said Vest. Last year, work to fix up foreclosures and repossessions helped the Tucson economy recover 900 lost jobs in construction. Most of those repairs were done by specialized trades such as electricians and plumbers. However, the Tucson area lost 30,000 jobs overall during the recession. Vest said full job recovery will not occur until 2015. This year looks to be one of modest recovery. Strobeckâ&#x20AC;&#x2122;s â&#x20AC;&#x153;micro-growthâ&#x20AC;? forecast calls for 1,500 new home permits in 2012 and 1,550 in 2013. More significantly, he estimated some 18,000 people are waiting to put their homes on the market once prices start to climb. Likewise, banks and private investors are holding their discount foreclosures while they wait for economic nirvana. Strobeck concluded that those factors could impact the housing market through 2018. Contact reporter Roger Yohem at ryohem@

GRAPHIC DESIGN employment opportunity

A growing division of Wick Communications has immediate openings for full and part-time Graphic Designers. We finished off 2011 with a bang, and we continue to grow in 2012. Recently we have added two top-notch designers and we are looking for more. The next great designer should have an outstanding portfolio demonstrating advertising design and talents in typography, hierarchy and WOW factor. Wick Communications is a family owned community Newspaper Company with 28 newspapers and 18 specialty publications in 12 states. We offer competitive pay with experience and a comprehensive benefits package including health insurance, dental, vacation and a 401K retirement plan.

WHAT WE ARE LOOKING FOR The qualified candidate will join our team in Tucson and will work in a local office, to design advertising for newspapers and website advertisements. You will also be required to thrive while working on strict deadlines, be punctual and detail-oriented all while working on multiple projects. Two years experience of newspaper or print advertising preferred, in addition, a four year degree in Visual Arts or Visual Communication and Emphasis in graphic design.

If interested please email akurtz@wickdesign.net -A cover letter. -A resume summarizing your qualifications and experience. -A link to your online portfolio /P QIPOF DBMMT QMFBTF t %SVH GSFF XPSLQMBDF &0&

20 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

BRIEFS

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GET ON THE LIST Next up: Manufacturing firms Now that the 2012 Book of Lists has been published, weâ&#x20AC;&#x2122;re collecting data for the 2013 edition. Upcoming categories that will be published in the weekly issue of Inside Tucson Business are: 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 â&#x20AC;˘ March 9: Acute-care hospitals, Rehabilitation centers, Nursing care centers and Home healthcare agencies 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 by a copy or advertise your business, call (520) 294-1200.

BIOTECHNOLOGY

C-Path hires Compton as CEO, president Critical Path Institute (C-Path) has hired Dr. Carolyn Compton as its new president and chief executive officer. Compton takes over for Dr. Raymond L. Woosley, C-Pathâ&#x20AC;&#x2122;s founder, who last year announced plans to step down. Compton served as the director of the Office of Biorepositories and Biospecimen Research (OBBR) and executive director of the Cancer Human Biobank (caHUB) project at the National Cancer Institute (NCI) at the National Institutes of Health (NIH). She is an internationally known scientist with experience in the areas of translational science and personalized medicine. She received her medical and doctorate degrees from Harvard Medical School and the Harvard Graduate School of Arts and Sciences. She trained in Pathology at Harvardâ&#x20AC;&#x2122;s Brigham and Womenâ&#x20AC;&#x2122;s Hospital and is boarded in both Anatomic Pathology and Clinical Pathology. â&#x20AC;&#x153;C-Path is an exceptional Arizona organization, and Dr. Compton is a scientist of the highest caliber,â&#x20AC;? Gov. Jan Brewer said in a statement. â&#x20AC;&#x153;I am confident that Dr. Compton, through her leadership of C-Path, will work to expand key alliances and collaborative relationships so that Arizona bioscience continues to thrive.â&#x20AC;?

RETAIL

Volvoâ&#x20AC;&#x2122;s DiChristofano is nominee for dealer of year D VHUYLFH RI WKH $UL]RQD 1HZVSDSHUV $VVRFLDWLRQ DQG \RXU ORFDO QHZVSDSHU ZZZ DQDQHZV FRP

Rocky DiChristofano, president of Volvo of Tucson, is one of 50 auto dealers in the nation â&#x20AC;&#x201D; and selected from all Arizona dealers â&#x20AC;&#x201D; to be among the nominees for the 2012 Time Dealer of the Year Award, who will be

honored as part of the 95th annual National Automobile Dealers Association (NADA) Convention & Exposition in Las Vegas on Saturday (Feb. 4). The award is considered one of the automobile industryâ&#x20AC;&#x2122;s most prestigious and given to dealers who are considered to be among the most successful and also demonstrate a long-standing commitment to community service. For the awards, a panel of faculty members from the Ross School of Business at the University of Michigan selects one finalist from each of NADAâ&#x20AC;&#x2122;s four regions and one national Dealer of the Year. Ally Financial, one of the sponsors of the award, will give $10,000 to go to a nonprofit of the winning dealerâ&#x20AC;&#x2122;s choice. DiChristofano, 46, joined the familyâ&#x20AC;&#x2122;s auto dealership in 1988 after graduating from the University of Arizona. Volvo of Tucson is at 831 W. Wetmore Road

Pep Boys agrees to be sold, taken private Pep Boys auto parts and service has agreed to be acquired by the private equity firm Gores Group in a deal valued at about $1 billion. Assuming the deal is approved by shareholders, it is expected to close by the end of June at which time the company would go private. Pep Boys, founded in 1921, has grown to 700 locations across the country, including 22 in Aizona. Its Arizona locations include three in Tucson and one each in Marana, South Tucson, Sierra Vista, Nogales and Casa Grande.

CIVIC

Input wanted to define Tucson regionâ&#x20AC;&#x2122;s future Between now and Feb 29, residents can give input to help define the greater Tucson region. The Imagine Greater Tucson survey is designed to provide a community vision developed by local residents for area jurisdictions to consider incorporating into their respective general or comprehensive plans. The survey can be found at www.ImagineGreaterTucson.org/survey. Additional Imagine Greater Tucson events are scheduled for: â&#x20AC;˘ Saturday (Feb. 4), 2 to 4 p.m. at Martha Cooper Branch Library, 1377 N. Catalina Ave. â&#x20AC;˘ Sunday (Feb. 5), 2 to 4 p.m. at Sam LenaSouth Tucson Branch Library, 1607 S. Sixth Ave., South Tucson â&#x20AC;˘ Feb. 13, 9 to 11 a.m., Joyner-Green Valley Branch Library, 601 N. La CaĂąada Drive, Green Valley â&#x20AC;˘ Feb. 15, 5 to 7 p.m., Woods Memorial Branch Library, 3455 N. First Ave. â&#x20AC;˘ Feb. 23, 3 to 5 p.m., Dusenberry-River Branch Library, 5605 E. River Road â&#x20AC;˘ Feb. 24, noon to 2 p.m., Miller-Golf Links Branch Library, 9640 E. Golf Links Road â&#x20AC;˘ Feb. 28, 6 to 8 p.m., Murphy-Wilmot Branch Library, 530 N. Wilmot Road For more information, call (520) 209-2448, email igt@ImagineGreaterTucson.org.

InsideTucsonBusiness.com

FEBRUARY 3, 2012

CAPITOL TAXES

Lawmakers seek to reduce, eliminate capital gains tax By Hank Stephenson Inside Tucson Business PHOENIX — In their quest to bring jobs to Arizona, Republican state lawmakers are looking to eliminate or reduce state income taxes on capital gains, calling them an unfair double-tax that discourages investment and job growth. The House Ways and Means Committee this week heard three different proposals on reducing or eliminating the tax, and approved them, with members voting on party lines. One of the three proposals would reduce the income tax paid on capital gains — including most personal investments, like real estate, household furnishings, jewelry and

stocks or bonds — by 57 percent for individuals earning more than $50,000 annually, or joint filers earning more than $100,000. Those making less than that would no longer pay any state tax on income from capital asset sales. Under the other two proposals, the tax would either be phased out over a period of three years, or cut off entirely in tax year 2012. Estimates by the state Department of Revenue say the removal of capital gains tax will reduce state revenue from individual and corporate income taxes by at least $200 million. The Joint Legislative Budget Committee said last year the elimination of the capital gains tax would cost the state general fund $420 million by the time the tax was en-

tirely phased out. Rep. Steve Farley, D-Tucson, said losing the $420 million could cost the state almost the amount of the budget surplus lawmakers have squirreled away this year from the three-year temporary 1-cent sales tax increase and increased taxes from foreclosed homeowners who no longer get that exemption. “So we’re taking money away from kids and foreclosed homeowners and we’re giving it to in effect, millionaires by getting rid of the capital gains tax,” Farley said. “I don’t think that’s where we’re at in Arizona, I don’t think that’s where our constituents are at.” But Rep. Ted Vogt, R-Tucson, the vice chairman of the committee, said in order to put any more money into education, the

state needs to first stabilize and grow the economy. “By fixing our capital gains tax we will be attracting capital, and by attracting capital we will create jobs,” said the Tucson Republican. “Let’s not forget that when we had 300,000 more jobs, our state budget was about $10 billion dollars and there was money we could invest in our other institutions.” Steve Slivinski, an economist at the Goldwater Institute, urged lawmakers to pass the bills and said the state would be more competitive with other states that have already slashed or eliminated capital gains taxes. He said the cost of the tax cut is better in reality than it looks on paper because the cuts inspire people to invest their money and generate more tax dollars for the state.

UNIONS

Union busting bills start moving through legislature By Hank Stephenson Inside Tucson Business PHOENIX — Foreseeing a Wisconsinstyle reckoning in the 2012 election, public union members and Democratic lawmakers warned state Republicans on a Senate committee not approve a package of public union-busting bills, but the committee passed the bills anyway. Along party lines, the Senate Government Reform Committee voted to approve four Goldwater Institute-backed bills designed to hamper public unions. The strongest of the provisions would stop a state agency, county, municipality or school district from recognizing any union as a bargaining agent.

The three other bills were aimed at making public union members annually renew their intent to allow payroll deductions to go to a union, or stopping the payroll deduction practice altogether, and clarifying that public employers can’t pay employees for any union activity. State Sen. Rick Murphy, R-Glendale, chairman of the government reform committee and a bill sponsor, argued eliminating public employee unions would allow the state manage its employees better and would put the budget on a sustainable path. “There needs to be a better balance,” Murphy said. “I think there is a problem when you have folks who choose to take up the mantel of public servant and then group up together and use leverage on the people

W FOLLO DER A E L E TH

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who they claim to serve, and that they do serve, but it’s not an appropriate balance.” The committee heard more than four hours of heated testimony Wednesday from both sides, including horror stories about union leaders abusing their powers to coerce employees into joining, leading secret, backroom negotiations with public employers and extorting the state. Union representatives said they don’t coerce and they represent the rights and interests all public employees, members or not. They said they were being picked on for political purposes by Republicans. Although the Legislative Council anticipates no fiscal impact from the bills, the Goldwater Institute told lawmakers public union employees are paid on average 44

percent more than private sector employees and the state could save as much as $550 million per year in the future by eliminating public collective bargaining altogether. The bills would affect public employees including teachers and administrators, firefighters, law enforcement and others but would not apply to the private sector. Mike Colletto, who represented the Professional Firefighters of Arizona, said the bills would force his organization into a fight with the Legislature, “Quite frankly this bill and the following bills are going to create a firestorm in our organization, I just gotta tell you this, we’re going have a hard time managing this,” he said. “You’re going to force us to become less flexible.”

Browse..Click..SAVE! Southern Arizona’s LARGEST Independent Office Products Dealer 520-352-2656 | 877-534-1533 www.OfficeSmartUSA.com

22 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Maybe your 401(k) isn’t all it was supposed to be “60 Minutes” recently re-aired an installment about 401(k)s and the fact that so many baby boomers are putting off retirement because they’ve lost so much money due to volatility of the markets. If you’re a babyboomer with a 401(k), I urge you to watch it. Several people who have lost jobs and large percentages of their retirement funds were interviewed in the “60 Minutes” program as were professionals from the industry. Among them, correspondent Steve Kroft interviewed David Ray, president of 401(k) Council of America and an industry lobbiest, who said the 401(k) was the best way to save for retirement and that losses were, “not a 401(k) problem. If people take equity risk, there was a logical outcome.” Ray said people have no one to blame but themselves. Kroft asked Ray if he thought people would get all their losses recovered to which Ray responded, “They can’t count on it coming back. Maybe if they work 10 more years but shouldn’t have any unrealistic expectations.” Kroft then interviewed Brooks Hamilton, who designs pension plans for large companies. Regarding mutual funds Hamilton said, “The fact is, the typical 401(k) investor is a novice. They don’t know a stock from a rock.” When asked about the quality of the mutual funds in 401(k) plans Hamilton responded, “Mediocre. Half the funds are really dogs and shouldn’t be listed.” U.S. Rep. George Miller, D-Calif., is a critic of 401(k)s. He told Kroft there are more than a dozen undisclosed fees deducted from 401(k) accounts. Most are not listed in the prospectus. Among them are legal fees, trustee fees, transactional fees, stewardship fees, bookkeeping fees, finders fees and more. Miller said 401(k) participants can lose half of their income to fees over a 30-year span. So, what can you do? First, get educated on your options so you can make informed decisions. Find out how much you are paying in fees for mutual funds. There is a free website — www.personalfund.com — that will give you the facts. It is run by financial expert Andrew Tobias. On the wesbiste you can enter your fund symbols and get a broad spectrum of information. Are there alternatives to investments in 401(k)s? Yes. If you are 59½ or older, you may be able to rollover all or a portion of a 401(k) into a self-directed IRA. Check with your plan administrator then consider a Fixed Indexed Annuity (FIA). The FIA has no rival

in its combined ability to ensure safety, offer opportunity for growth that is automatically captured annually, and give income that adjusts for inflation and lasts a lifetime. It surpassSUSAN MOORE es variable annuities, target-dated mutual funds, laddered bonds and dividend-paying stocks. And, most have no fees except an income rider fee of less than 1 percent designed to guarantee lifetime income. A 401(k) cannot guarantee a lifetime income. With an FIA you never lose principal or previously credited gains to market volatility. When the market is up, you capture a portion of the gains. When the market is down, you are protected from losses. Financial expert David Babbel, a senior adviser at Goldman Sachs and professor emeritus at the Warton School at the University of Pennsylvania, has conducted studies and written white papers on the safety and viability of fixed indexed annuities and immediate annuities for retirement. “Moderate returns that never experience a loss and grow tax-deferred will outperform a volatile market over time,” he writes. What about safe returns? Bank CDs, savings accounts, money market yields and government bonds (with interest rate risk) have safe returns. Although the FIA was never built to compete with the stock market, it has done admirably in an increasingly volatile environment. Recents studies by Jack Marrion, an industry-recognized expert on annuities, and the Wharton School have that FIAs with yields in the 5 to 8 percent range have even competed with the returns of the S&P 500. So while you may achieve good results compared to the market, you have non of the market risk. Fixed Indexed Annuities — not to be confused with Variable Annuities — are sold by insurance agents. Find a good advisor who is a Retirement Planning Specialist to review your needs and who can help you achieve your retirement goals. At least become familiar with your options so you can feel secure about your retirement and future.

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

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

Company Name

Symbol

Feb. 01

Jan. 25 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 0.05 15.10 37.70

0.07 0.06 14.99 37.13

0.00 -0.01 0.11 0.57

0.04 0.02 8.35 32.96

0.97 0.10 16.59 39.25

10.20 0.59 3.47 7.36 58.82 8.95 7.75 78.66 24.18 53.29 4.72 19.00 31.60 26.85 18.88 27.19 13.39 83.22 37.51 42.65 10.90 43.89 64.43 14.09 46.16 27.20 44.47 58.94 192.62 30.85 57.88 5.30 37.60 32.37 9.70 45.56 23.83 1.34 21.83 26.88 37.85 54.64 33.99 35.13 25.37 42.15 59.25 41.32 7.83 48.74 41.92 21.86 36.87 41.95 13.19 9.74 42.41 28.20 51.42 17.54 32.86 37.69 23.21 114.84 53.00 8.90 28.56 62.18 33.22 29.89 8.14 17.02

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

-0.28 -0.03 0.49 0.01 -1.67 -0.01 0.15 -1.19 -1.53 -4.30 -0.09 0.85 1.64 0.73 -0.35 0.87 -0.07 0.50 -0.02 0.47 0.94 -1.94 3.57 -0.40 0.08 -0.15 -0.79 0.83 0.89 -0.91 0.36 0.26 0.00 0.97 -0.08 -2.19 -0.82 -0.13 -0.97 -0.03 -0.33 -0.21 -0.20 -0.03 -2.38 -0.11 -0.34 7.05 -0.16 -0.97 -1.63 -1.02 0.23 -2.92 0.55 0.23 0.34 1.50 0.28 0.53 0.06 -0.52 2.80 1.21 -2.97 1.38 -0.04 0.71 -1.47 -0.31 -0.05 -0.50

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 24.53 39.87 2.69 27.85 25.73 5.02 42.14 21.14 0.49 12.14 18.07 32.90 38.64 21.69 25.49 13.68 33.20 49.20 23.44 3.29 38.35 34.02 15.93 30.98 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 7.60 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 12.13 61.08 70.15 14.72 58.75 29.68 45.50 62.28 194.90 35.79 58.06 6.18 48.36 38.40 15.30 57.39 25.85 3.47 23.11 27.57 45.31 56.50 35.92 42.78 28.25 54.90 72.50 42.29 8.44 53.12 45.65 25.43 40.75 94.79 17.28 12.88 43.22 31.89 56.00 23.46 36.71 38.62 27.72 114.82 58.29 10.35 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

FEBRUARY 3, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Downturn in housing construction has ripped $2 billion from Tucson economy By Roger Yohem Inside Tucson Business Just how serious is the need for local jobs? Is it a legitimate economic concern or just a bunch of rhetorical hooey from the pro-business crowd? It’s no surprise that some of the loudest outcry is from the housing industry, a labor market that was slammed by the Great Recession. When times were good, jobs were as plentiful as profits. That money not only trickled down through the local economy, but trickled up into local government coffers. “Too many governments were living off of development and impact fees. Now, that has gone away. Two. Billion. Dollars. Lost,” said John Strobeck, owner of Bright Future Business Consultants, in analyzing the housing industry’s 2011 performance. Since peaking at $2.241 billion in total economic contribution in 2006, Tucson’s housing industry crashed to just $241 million last year. “We just dropped the number two that was in front,” said Strobeck, “at a cost of 30,000 construction jobs.” Current employment is about 5,800. Some of the main factors in his total economic contribution computation include land acquisition, construction materials and supplies, labor and development-related government fees. Some of the softer costs include architects, engineers, attorneys, financing and the builder’s administration and project management staff. “After the home is built and sold, the last thing is profit. And being a business, builders can’t hire more people without it,” said Strobeck. “For Tucson, about 90 percent of their economic contribution stays here. That’s the best thing, its local money.”

Marana Wild Ride On March 28, Wild Ride 2012 will take its road show to the suburbs for Marana March Madness: Navigating Toward Opportunity. The annual event by the Metropolitan Pima Alliance is an educational, ground-level view of land use planning and development around the region. The event begins at noon at Ritz Carlton Dove Mountain. A hosted bus tour will take attendees to destinations that include Sargent Aerospace, Marana Regional Airport, and the Marana Municipal Complex. Featured speakers include Marana Mayor Ed Honea; Marana Town Manager Gilbert Davidson; Brian Baehr, vice president of land development for Grayhawk Development; and Zoe Richmond,

Since peaking in 2006, home building’s economic impact is now below $250 million.

public affairs director for Union Pacific Railroad. For details or to register, go to www. mpaaz.org and click on Events.

McCaleb’s 3 awards Long-time Tucson remodeler John McCaleb, owner of McCaleb Construction, has nailed a rare triple win for some recent projects. The National Association of Remodeling Industry has named him the 2012 Regional Contractor of the Year. The company won in Best Kitchen category, topping nominees from Arizona and seven other states. McCaleb Construction, 6565 E. Grant Road, also was 2011 Remodeler of the Year by the Southern Arizona Home Builders Association. This marked the fourth time McCaleb has earned this honor. Additionally, McCaleb received Professional Remodeler Magazine’s 2011 Chrysalis Award for Remodeling Excellence for a Residential Exterior. For more than 30 years, McCaleb has provided remodeling design and construction services in Tucson. He credited his staff for the company’s “outstanding work and enduring success.”

Horton’s land buy Home builder D.R. Horton has made the year’s first major land purchase in the region, acquiring 86 finished lots in Sahuarita for $4.4 million. The site is located in the Estancia del Corazon neighborhood within the Rancho Sahuarita master planned community at Interstate 19 and Sahuarita Road. The lots were sold by Del Corazon Arizona LLC, part of Florida-based Avatar

Properties Inc. Will White of Land Advisors Organization brokered the deal, noting that it is one of the area’s largest sales of finished lots since 2009. DR Horton has an existing presence in Estancia del Corazon and two other development projects within Rancho Sahuarita.

Sales and leases • O’Reilly Automotive Stores Inc. purchased 148,648 square feet of land for $450,000 at 51 S. Pantano Road, from Buffet Partners LP, represented by Pete Villaescusa of CBRE. Debbie Heslop, Volk Company, represented the buyer. • Concentra Health Services Inc. leased 11,532 square feet at 4600 S. Park Ave. in Suites 2-5 from Ohio Street Building No.2 Ltd. LLLP, represented by Rob Glaser of Picor Commercial Real Estate Services. The tenant was represented by Buzz Isaacson of CBRE. • Columbia Analytical Services Inc. leased 6,091 square feet at 3860 S. Palo Verde, Suites 301, 303, and 305 from Palo Verde Trust Partners LLC. Rob Glaser and

Paul Hooker of Picor represented the landlord. Chris Bargowski of Mohr Partners Inc. represented the tenant. • Aztera LLC leased 5,050 square feet at 2102 N. Forbes, Suite 103-105 from East Park VI Holding Company LLC. Rob Glaser with Picor represented the landlord. Steve Cohen, also of Picor, 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. • Monster Signs LLC leased 4,560 square feet at 1131 W. Grant Road, Suite 121 from Sloat Family Partnership, represented by Steve Cohen of Picor. • Law Office of Arthur Weiss leased 1,773 square feet at 3130 E. Broadway, Suite 160 from LC 3130 LLC. Thomas Nieman of Picor handled the transaction. • Cosmo’s Espresso, Coffee and Tea leased 1,610 square feet at 5775 E. Broadway from Mullen Trail LLC. John Wilson, Keller Williams Commercial, handled the transaction. • Mila’s Haircuts LLC leased 1,600 square feet at 3927 E. Grant Road, from TNP SRT Northgate Plaza Tucson LLC, represented by Debbie Heslop of Volk Company Commercial Real Estate.

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

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

TUCSON REAL ESTATE

1/23/2012

1/16/2012

$125,000 5,537 395 438 217

$122,000 5,547 373 410 159

Source: Long Realty Research Center

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

Current

Last Week

1/31/2012

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

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 Peoples Mortgage Company, 3131 N. Country Club Suite-107 Tucson, AZ 85716. (520) 327-7600. MB #0115327. Rates are subject to change without notice based upon market conditions.

3.88% 3.25%

24 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Welcome to Tucson; you won’t go fast It struck me the other day while caught in traffic that there are probably a lot of visitors who may be stumped by the way we drive in Tucson. We do drive differently here. I got to thinking: What advice would I give someone from out-oftown about our driving idiosyncrasies? First off, we in Tucson don’t drive with any sense of purpose. So what appears to be rudeness is merely us DAVID HATFIELD being oblivious about what we’re doing. We pay no attention to nonsense about slower traffic keeping right. Nor do most of us make an attempt to drive anywhere close to posted speed limits. Quite often we’ll combine the two: drive for blocks in the left-hand lane always maintaining a speed of at least 10 miles per hour below the posted limit. The best part — and where drama can really unfold — comes when we need to make a turn, right of course, and dart across multiple lanes of traffic in less than half a block. That turn indicator flashing means “I’m coming.” So when it comes to giving directions to a person who has just arrived at Tucson International Airport and picked up their rental car, I’d tell them there are plenty of different roadways to take into town but more important than which one you choose is how you drive on that road. The leg up for you the visitor is that you will be paying attention. We locals don’t. As already noted, the left lane shouldn’t be your first choice. Unfortunately, the way our traffic engineers designed our roadways — we have no freeways — the right-hand lane can be problematic because we have no shoulders to accommodate slowing and turning traffic. We’re now spending millions of dollars to try rectify that but only at places where we want Sun Tran buses to stop. But we still don’t know how to do it right. Three years ago we spent $6.4 million fixing the Grant-Craycroft roads intersection and — oops — our city’s traffic folks forgot to put in the promised bus pullout lane. The truth of the matter is a two-lane surface street can often get you from one place to another as quickly as a major boulevard. Neither will be fast, mind you. On the subject of speed you might notice our law enforcement agencies are fond of photo radar enforcement. Out of towners may be familiar with what’s called a “5 mph leeway” meaning you should be able to drive 5 mph above the posted limit without being ticketed so long as you’re not otherwise driving recklessly. Here we have a 10 mph leeway. The photo radar won’t snap your picture until it calculates you’re exceeding the speed limit by 11 mph. The real fun comes when locals realize we have no idea what the posted speed limit is and slam on the brakes to 25 mph just to be sure. Above all else I’d want to tell all visitors to Tucson we welcome and are glad you got here. Just don’t expect to get anywhere in a reasonable amount of time while you’re here.

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

EDITORIAL

Liquor zoning restrictions are outdated It has been more than 78 years since the 21st Amendment repealed prohibition but remnants of irrational and outdated restrictions pertaining to alcohol sales remain. Take Arizona laws regarding where establishments selling alcohol may be located. Currently, liquor, beer and wine cannot be sold within 300 feet of the primary building of a church, any classroom of a K-12 school or the perimeter fence of a playground. Certainly understandable considerations, but they shouldn’t be the hard line. Does it make sense in an urban environment? Four years ago proponents pushing for revitalization of downtown Tucson realized their hopes ran counter to the law. It seemed the proliferation of charter schools — something that Arizona has been at the forefront of among states — meant that there were no places where new liquor licenses could be issued downtown. A bill that would have eased the restrictions never made it out of the 2009 Legislature. In another situation, the City of Yuma found itself in a legal battle when it stopped a church from taking over an old department store building because the area was part of an historic area being developed as an entertainment district and didn’t want the liquor restrictions. The church filed a lawsuit that went up to the Ninth U.S. Circuit Court of Appeals that ruled the city violated federal law because it required religious groups to obtain a permit but didn’t require “similarly situated secular membership assemblies to do the same.” In the meantime, in 2010, a new state law prohibits cities from restricting the locations of churches, although it includes a provision that allows churches to waive the 300-foot restriction on alcohol sales in entertainment districts.

Take a look around at the reality of these restrictions. That’s easier to do these days with vacant retail buildings. For instance, why couldn’t a BevMo or Total Wine store have moved into the old Circuit City building on the southeast corner of East Broadway and Craycroft Road? It’s too close to St. Joseph Catholic Church, 215 S. Craycroft Road. Why couldn’t a supermarket have taken over the vacant Mervyn’s building on the northeast corner of that same intersection? Too close to Desert Sky Community School, 122 N. Craycroft Road, to be able to include a liquor department. (To be clear we don’t know that either vacant building was ever considered for such uses, we just point them out as examples of locations that could not be permitted to sell liquor under current state regulations. It’s also ironic the Circuit City building shares a parking lot with a location of BJ’s Restaurant and Brewhouse but it’s more than 300 feet away from the church.) For whatever reason these restrictive zoning laws on alcohol sales were originally put into place, the times have changed. Every major supermarket chain — AJ’s Fine Foods, Albertsons, Bashas’, Food City, Fry’s, Safeway, Sprouts, Sunflower, Trader Joe’s, Walmart, Whole Foods and you name it — sells liquor. Further, regardless of where any of these stores is located, they’ll need a liquor license from the Arizona Department of Liquor Licenses and Control. As a prerequisite there are requirements for public notification, reaction and a recommendation either endorsement or rejection from local government officials. That’s a system that should be applied in all cases. What’s nearby shouldn’t make for automatic rejection.

InsideTucsonBusiness.com

FEBRUARY 3, 2012

OPINION GUEST OPINION

Don’t let hand of big government take away your right to know Long before transparency was a catch phrase of government watchdogs, newspapers were the primary fighters in the battle to keep government records open to citizens. To this day, newspapers continue the important role of providing notice to the public on such things as public hearings, proposed tax increases, ordinance changes, zoning changes, budget proposals, school district information, and other government actions and information that people’s rights and lives. It’s important to note newspapers do this while also providing independent, third-party verification the information is actually getting to the public. State Rep. David Stevens, R-Sierra Vista, has introduced a bill (HB 2403) that would allow Internet postings as a substitute for newspaper publication. In its current form, the bill allows governments to publish public notices in a newspaper or post notices anywhere on a “worldwide public network of interconnected computers.” In other words, government agencies could be permitted to post their information only on their own websites. While some might see the proposed legislation as simply an effort to get with the modern digital age, the fact is this information is already posted online and has been since 1998 on a central data-

base — www. publicnoticeads. com — that contains all public notices published in newspapers in Arizona and other states. This is in addition to the information pushed out to the PAULA CASEY public in the local newspaper and one newspaper websites. And it comes at no additional cost to taxpayers. Local newspaper websites are the most popular and most commonly viewed websites within their local communities — with numbers of visits that dramatically overshadow local government websites. Access to Arizona’s free centralized website, www.publicnoticeads.com topped more than 1.8 million page views in 2011. Simply put, the current system is working and working well. Public notices are reaching Arizonans in both print and online. Moreover, government this bill proposes to have government take over a function currently being performed very well and costeffectively by Arizona’s newspapers. There are other reasons to preserve printed notices. Regardless of advance-

ments in technology and the proliferation of Internet use, it is premature to consider moving all public notices to the Internet exclusively. In Arizona, there is a significant disparity in Internet access among various regions and demographics. For example, reports have shown that as many as 45 percent of minorities are without Internet access. Another critical issue that is getting lost is that these notices have a very real, legal significance. When published under the current process, newspapers produce an archive and can produce valuable affidavits as proof the public was noticed. If notices were to go solely to the Web there would be no way to prove that a notice was actually posted. The U.S. Library of Congress is currently grappling with this issue and has yet to find an answer. Experts agree there are four elements that mark a valid public notice: 1. The notice must be published by an independent party; 2. The notice must be capable of being archived; 3. The publication must be accessible; 4. The publication must be verifiable. If any one of these elements is absent, the notice simply cannot be properly authenticated and is subject to challenge. The public must also be able to verify

the notice wasn’t altered once published — something that is not currently possible on the Web. If HB 2403 were to become law, government would be set up to police itself on public notices. We already have an example in Arizona of how this did not work. In 2008, counties across the state were allowed to post minutes of their meetings on their own websites. Santa Cruz County posted minutes of just six of 48 meetings in 2009 and none of them after February of that year. The county cited budget and staffing limitations for its non-compliance. If the county couldn’t publish its own meeting minutes, how can it be expected to post all notices online? Please contact members of the state House Technology & Infrastructure Committee at www.azleg.gov/ CommitteeInfo.asp?Committee_ID=21 to let them know you value printed notices and the public’s right to know. This is not the time to change a system that works efficiently and is cost effective. As they say, if it ain’t broke, don’t fix it! Paula Casey is executive director of the Arizona Newspapers Association. Inside Tucson Business is a member of the association.

SPEAKING OUT

Civics 101: Replacing Giffords is a test of voter stamina Gabrielle Giffords has resigned her seat in the U.S. House of Representatives to spend full-time in her recovery after a gunman shot her and 18 others, six fatally, on Jan. 8, 2011. Since that tragic day last year, some have wondered why the governor couldn’t have called a special election to replace Giffords. Nothing could have happened until Giffords tendered her resignation. According to the Arizona’s constitution “a primary and general election is prescribed by law which shall provide for the nomination and election of a candidate for U.S. Senator or a Representative in Congress when vacancies occur through resignation or any other cause.” According to the Secretary of State’s office, when there are more than six months remaining in a Congressional term, special elections are required. Southern Arizonans have replaced Congressmen twice before: In 1961 when Rep. Stewart Udall resigned to become President John Kennedy’s Secretary of Interior and in 1991 when Rep. Morris “Mo” Udall resigned due to ill health. Mo Udall was elected to succeed his brother and Ed Pastor

was elected in the 1991. Pastor is still in Congress, though his district no longer extends into Pima County. This year there are complicating circumstances. As happens every 10 CAROL WEST years, Arizona is in the midst of redrawing Legislative and Congressional districts as a result of the 2010 Census. The new district maps have been completed and sent to the U.S. Department of Justice for final approval. Now that Giffords has resigned, Gov. Jan Brewer has set April 17 as the date for the special primary elections and the winners on those races will then go on to face each other in the special general election June 12. These elections will take place within the boundaries of what is currently Congressional District 8. The person elected will serve for the remainder of Giffords’ term, which expires Jan. 13, 2013. Meanwhile this year, elections will start

over for the next Congressional terms. On Aug. 28, the state’s already scheduled primary elections will take place and the general election will be on Nov. 6. Under redistricting done by the Arizona Independent Redistricting Commission, most of what was Congressional District 8 will become Congressional District 2 starting next year. But some voters currently in District 8 won’t be in District 2 and others currently outside of District 8 will become a part of the new District 2. Voters being removed, include those in Marana and parts of Oro Valley, who will become part of the new Congressional District 1. And some voters in central Tucson, currently in Congressional District 7 and represented by Raúl Grijalva, will be moved in to the new District 2. This not only affects voters but could also affect candidates. The framers of the United States Constitution wanted to ensure that each state would have some some represntatives who were not dependent on popular vote believing they could be more objective about Congressional issues. That’s why each state would have two senators regardless of size while the House of Representatives is

aportioned by population. It’s also a reason U.S. Senators were originally selected by state legislatures until the 17h Amendment was ratified 1913. The argument at the time was the Senate had become “an aristocratic body that was out of touch with the people.” To this day if a U.S. Senator resigns or dies in office, there is often a different process for replacement. In Arizona, the state constitution requires the governor to appoint someone of the same political party to serve until a special election can be held. The two different processes for replacing elected officials in Congress is confusing but that’s how it works. The cumbersome procedure this year of special elections in one district then regular elections in newly-drawn districts will require voters to stay engaged for the next nine months.

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

26 FEBRUARY 3, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Match Play Championship is our window to the world, let’s show it By Chris Bannon As a young boy growing up back east the long gray period between the New Year’s Day bowl games and the first pitch of baseball a dreadful, dreary world of no color, dormant leafless plants and bone-chilling cold. Like the picture on my little black-andwhite Magnavox TV, the winter world I was trapped in was a gray, dull and lifeless world. Then one year an amazing thing happened that totally changed my perspective of the world beyond my frozen boundaries. The national telecasts of the golf tournaments of the PGA Tour’s West Coast swing. Suddenly my Magnavox TV portal was showing me people outdoors, bathed in sun. Even in black-and-white they were amazing sights. Paradise was not lost, it was alive and well and they were playing golf, in short sleeves, in the middle of winter. It was an amazing impression that I still carry to this day. For 66 years PGA Tour golfers have come to Tucson. It’s a real testimony to our region and a professional organization long committed to quality competition in a world-class setting. For the last four years golf’s “Global Summit” that is the World Golf Championships - Accenture Match Play Championship has called Tucson home. In doing so, for one whole week the major

electronic, social and print media of the world happily funnels images and stories of our sun-drenched, saguaro-rich, high desert life into envious living rooms around the globe. The sophisticated, highly-produced coverage of the event and of our desert lifestyle is a priceless gift and the exposure and publicity gained from it is more than could be gained from any ad campaign. It is paramount that we here in Tucson fully understand what an amazing marketing tool this golfing event is for our our region and, most importantly, our economy. Few communities get a chance at a big-time professional event of this stature. Consider, too, that Accenture brings in nearly 650 of the world’s top executives during the week of the championship. More than $50 million comes into the local economy. The player invitation list is the most exclusive in professional golf and the invitees bring entourages with them. On top of all of that, local charities benefit to the tune of more than $1 million from a successful event. All of this because in the 1940s local pro Lou Diegel figured if Los Angeles and Phoenix could do it, why not Tucson? That little PGA tour stop that started in 1945 has grown to one of the top tournaments in a sport that has gone global. In that time,

century global marketplace, this championship is one of the most important investments we can make. It helps fill our resorts, fix our roads and bring money for our schools. There are dozens of other locations hoping Tucson loses focus or grows tired of this event. We owe it to Lou Diegel, the Tucson Conquistadores, Accenture and our kids not to let this slip away from us. From Feb. 20 - 26, with the high desert and beautiful Tortolita Mountains as a backdrop, the world’s very best golfers will compete in front of a world-wide audience that once again will see a BIZ FACTS that amazing scene that I saw t more than 40 years ago — only m Accenture Match Play now n it’s in vivid color and Championship high-defi nition. Paradise does h Feb. 20-26 exist and is alive and well and e open for business in Tucson, o Ritz-Carlton Golf Club, Dove Mountain Arizona. A

Tucsonans have been privileged to see the greats — Jack Nicklaus, Byron Nelson, Sam Snead, Ben Hogan and Gary Player — even if they didn’t emerge victorious. Others — Tiger Woods, Arnold Palmer, Tom Watson, Lee Trevino, Phil Mickelson and Johnny Miller — have taken home the Conquistadores’ crown; some more than once. Just last year, Luke Donald started his historic run to be the world’s No. 1 player with a victory here. The moral to this story is simple. The Accenture Match Championship is one of the most important economic development

6501 Boulder Bridge Pass, Marana Ticket info: www.tucsonconquistadores.com (520) 571-0400 or toll-free at 1-800-918-4653 tools we have in our tool kit. If this region wants to attract the right crowd and businesses with their high-paying jobs, Tucson needs to support this event. In this highly competitive and fluid 21st

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Contact Chris Bannon, assistant director of the University a oof Arizona’s Biosphere 2, at bbannon2020@gmail.com. He is not a member of the Tucson Conquistadores or affiliated with the Accenture Match Play Championship but is committed to economic development for the Tucson region.

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FEBRUARY 3, 2012

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INSIDE TUCSON BUSINESS

FEATURED SPEAKERS Dick Morris Get the perspectives of one of the most prominent Washington insiders and political analysts when Dick Morris presents the latest update in the 2012 presidential chess game as it is being played out on the stage of American history.

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