Inside Tucson Business 02/17/12 by Territorial Newspapers

GROWING BUSINESS IS A DAILY GRIND HT Metals thrives with special services and material supply PAGE 11

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • FEBRUARY 17, 2012 • VOL. 21, NO. 38 • $1

Frontier pulls out of Tucson for the summer

Ambitious agenda Mayor Rothschild’s goals offer up a fresh perspective Page 6

ys of Bookmans’ sa Aaron Thornburg ms uld cause proble postal closing co e3 g nline sales. Pa o s y’ an p m co r fo

Monetizing social media

Inside Tucson Business

INSITE digs deep into data mining Page 14

Housing’s heat map

J.D. Fitzgerald photo

Hot and cold markets charted by Long Realty Page 23

Frontier Airlines is pulling back its service at Tucson International Airport. Effective May 17, the airline will discontinue daily flights to its Denver hub, moving Tucson to a “seasonal destination.” “We’re really focused on our most profitable routes and for this one we’ve made the decision to operate it during the peak fall and winter seasons,” said Lindsey Carpenter, senior manager of public relations and government affairs. “We’ll be back.” Frontier has set its schedule through Sept. 9 without the Tucson flights. Currently, Frontier offers two round-trip flights per day between Tucson and Denver. That is to be reduced to one flight per day each way effective April 17 and then eliminated entirely a month later. Carpenter said the airline would work with its Tucson employees at the airport as a result of the change but she said she didn’t have the details on what would happen. For travelers, the elimination of Frontier’s flights should have minimal impact because both Southwest and United also offer non-stop service to Denver where United also operates a hub. United is currently scheduled to offer four flights a day and Southwest two flights a day to Denver through most of the summer. Frontier has been at Tucson International since 2002 but this is the first year the airline has decided to make Tucson a “seasonal destination.” For awhile, the airline came close to being the dominate carrier on the Tucson-Denver route, especially during the years when the Colorado Rockies held their Spring Training at Hi Corbertt Field. In recent years Frontier has faced financial challenges and went through Chapter 11 bankruptcy reorganization from April 2008 to August 2009, emerging as a subsidiary of Republic Airways Holdings, which merged Frontier with another subsidiary, Midwest Airlines that had a hub at Milwaukee. This year’s seasonal reduction is a reversal from last winter season when Frontier expanded with seasonal nonstop flights to Milwaukee. Since then, Frontier has eliminated much of its service at Milwaukee. Republic Airways says it is now looking to find a way to spin off Frontier into a separate carrier. At Denver, Frontier has been challenged the past six years in part by the arrival of Southwest there. As of last year, Southwest replaced Frontier as the second busiest airline at Denver.

2 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

Award Categories Ethics Award - Customer Excellence Award - Good Neighbor Award

2012 Nominees 911 Caliber Collision Adult Care Hunters, LLC. AGM Container Controls, Inc. Air Tropics, LLC. Alpine Heating and Cooling, LLC American Openings, Inc. Arizona Business Equipment Arizona Hearing Specialists, LLC. Arizona Pest Control Co. Automotive Specialist, LLC. BeachFleischman PC Best Finsihing, Inc. Bill's Home Service Co. Bob's Custom Roofing Borst Automotive, LLC. BRAKEmax Car Care Centers Carpet Police, LLC. Cartridge World Tucson Chef Chic Child Shield, U.S.A. Choice Air Conditioning and Heating, LLC Compression Printing Custom Solar & Leisure, LLC. Del Oro Realty Dolly Quinn SalonSpa

EffortlessHR, Inc. Empire Today, LLC Eric's CARSTAR Collision Repair Fellowship Square -Tucson First Impression Security Doors Flynn Electric Golden Eagle Distributors, Inc. Hands On Home Inspections, LLC Home Watch CareGivers Hughes Federal Credit Union Integrity Automotive Corporation JayBees Auto Service John Wesley Miller Companies Marksman Pistol Institute Massage Envy Spa Matthew Foley, PLC McCaleb Construction, Inc. MyGo2Guy National Auto Collision Centers, LLC. National PC Solutions Neet, LLC New Dogs - Old Trix of Tucson Patio Pools & Spas Physician's Hair Institute Pima Dermatology, PC Pinnacle Plan Design, LLC

2012 Nominees

Porter Construction Services. LLC. Realm Rite Way Ventilating Co. Rockafellow Law Firm Roof Coating Specilaits, Inc. Rubs Massage Studio Safe Electric, LLC Sandbrook Benefits Group, LLC Santa Rita Nursing & Rehabilitation Center Scooby's Auto Works & Detailing Sierra Toyota Signs Now Skin Spectrum PC Skyline Printing Company, Inc. Snell & Wilmer LLP. Soaring Heights Communities Soreo In Home Support Services, LLC Staff Matters, Inc. Synergy HomeCare Temperature Control, Inc The Paint Kings, Inc. The Scott Pattison Agency, Inc. The Villas at La Canada Tompkins Family Chiropractic Trader Joe's Williams & Associates, Ltd. Xcel Delivery Services

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2012 Torch Awards Thursday, April 26 11:30 am-1pm JW Marriott Starr Pass

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InsideTucsonBusiness.com

FEBRUARY 17, 2012

NEWS

Businesses look to alternatives if Postal Service closes sorting center

Judge orders $82.75M be paid to jilted Asarco

The possible closing of the U.S. Postal Service processing center in Tucson is raising concerns — not only about the direct job losses but also the potential residual impacts to other businesses and throughout the region. “It would be extremely concerning if they closed that facility,” said Aaron Thornburg, warehouse and online sales manager at Bookmans warehouse, 5120 S. Julian Drive. The company ships an average of 600 books, CDs and DVDs each day from the south side warehouse, most of it through the U.S. Postal Service. The U.S. Postal Service announced last year it had identified 252 out of 487 sorting it wanted to close to cut $20 billion in expenses by 2015. For fiscal year 2011, the postal service ran an operating deficit of more than $5 billion. Tucson’s facility at 1501 S. Cherrybell Stravenue was among those identified. Under its plan, all mail from Southern Arizona would be trucked to a sorting facility in Phoenix and then brought back for delivery. Postal Services officials insist almost all first-class mail would still be delivered within three business days, though next-day deliveries would be eliminated. “It’s extremely important,” Thornburg said of Bookmans’ relationship with Tucson’s only postal processing center. “We really need to maximize our shipping potential. The U.S. Postal Service does that for us.” He said, for example, that Bookmans’ workers easily can drive to the post office to pick up additional carts the company fills each day. Also, if late orders come in, workers can bring them to the post office for processing that day. The biggest possible drawback of the potential facility closure would be the addi-

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

J.D. Fitzgerald photo

By Patrick McNamara Inside Tucson Business

Samuel Lavelle wrapping books to be shipped out of Bookmans’ online retail warehouse.

tional shipping time added to each order. “It could be the determining factor to end our work with the U.S. Postal Service,” Thornburg said. He said using a private shipper would raise costs but it’s something he expects Bookmans and other online retail companies would do. Another company that could be impacted is the Western Passport Center, 7373 E. Rosewood St. When it opened in June 2008, owner Stanley Inc. said one of the reasons it selected Tucson for the center was the “robust Postal Service facilities” that were available. Stanley was acquired in 2010 by CGI Group, an information technology company. A CGI Group spokeswoman deferred comments about the Postal Service to the State Department. Among its responsibilities, the high-volume Western Passport Center is responsible for expedited passport applications for U.S. citizens and foreign residents who must travel out of the country in 14 days or less. Local governments are also raising con-

cerns. Tucson City Council members cite the potential loss of more than 100 jobs as a blow to the economy. And the Pima County Board of Supervisors codified its objections with a resolution saying the closure would leave a $30 million hole in the region’s economy and the loss of $4.8 million annually in tax revenues to local, state and federal jurisdictions. The county’s resolution also notes that while it has contracted with a vendor in Phoenix to assemble vote-by-mail ballots, many of them were brought to the Tucson postal service facility for mailing because the processing center in Phoenix couldn’t handle the volume for the entire state. Pima County Recorder F. Ann Rodriguez also has criticized the proposed closure, saying it would delay the delivery of election ballots, which would be especially problematic across the reservations.

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

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAN GIBSON dgibson@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

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

A bankruptcy court judge has ordered Sterlite Industries Ltd. to pay Asarco $82.75 million in damages for walking away from a deal to acquire the Tucson-based miner out of bankruptcy in 2008. In an order issued Feb. 13, U.S. Bankruptcy Judge Richard Schmidt, of the Southern District of Texas in Corpus Christi, said that while Asarco is entitled to a gross amount of $132.75 million in incidental damages, the amount was reduced by $50 million, which was already paid by Sterlite. The bankruptcy had previously rejected Sterlite’s claim for a refund of the $50 million. Sterlite, based in Mumbai, India, and Grupo Mexico, headquartered near Mexico City, had separately bid for Asarco while it was in Chapter 11 bankruptcy in 2008. Sterlite originally won the bidding but decided against pursuing the acquisition after copper prices subsequently dropped. Officials of Sterlite said the company was still determining a course of action.

Tech firm CDEX files Ch. 11 reorganization CDEX Inc., an 11-year-old technology development company, has filed for Chapter 11 bankruptcy reorganization with a plan to restructure its debt. The company said its board of directors determined the reorganization would provide the most efficient means to restructuring with minimal impact to the business. “Although the company has worked closely with its noteholders and other creditors and constituents over the past year, which led to the reduction of certain obligations, the company needs to complete its comprehensive restructuring due to its current inability to negotiate restructuring terms with all noteholders,” said Jeffrey Brumfield, chairman and CEO. CDEX, headquartered at 4555 S. Palo Verde Road, listed liabilities totalling more than $2.8 million and assets of $425,725. Its largest creditor was listed as Gemini Master Fund Ltd., a hedge fund of Gemini Investment Strategies LLC in New Jersey that is owed $927,437. The company has about 20 employees who work on two primary product lines, a medication safety system named ValiMed G4 and security products marketed as ID2 Meth Scanner and the Pocket ID2 Meth Scanner.

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

6 8 8 10 11 13 18

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

21 20 22 23 24 24 27

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INSIDE TUCSON BUSINESS

NEWS Westward Look Resort acquired by Wyndham Wyndham Hotels and Resorts LLC, a subsidiary of Wyndham Worldwide Corporation, has announced the purchase of the 241-room Westward Look Resort, 245 E. Ina Road. Wyndham purchased the resort for $31 million. First opened in 1912, the 80-acre foothills resort will now go by the name Westward Look Wyndham Grand Resort and Spa. The property is the third Wyndham hotel in Arizona, joining Wyndham Green Valley Canoa Ranch Resort in Green Valley and Wyndham Garden Hotel Prescott in Prescott.

Accenture golf championship to bring in million-dollar payday for winner, charities BIZ FACTS

World Golf Championships/ Accenture Match Play Championship

County seeks properties as buffer to Raytheon

Deadline is Wednesday for Up & Comers nominations Wednesday (Feb. 22) is the deadline to nominate Southern Arizonans in their 20s, 30s or early 40s to be recognized and honored as Up & Comers. This is the 10th year Inside Tucson Business is conducting the annual recognition program. To nominate a candidate, go to www.InsideTucsonBusiness.com and click on the Up & Comers icon. People are welcome to nominate, friends, family members and business colleagues. Self nominations also are accepted. Ten honorees will be selected from the nominations and profiled in a special section in the April 13 issue of Inside Tucson Business.

Roger Yohem photo

The Pima County Board of Supervisors could move on a proposal to purchase 382 acres south of Raytheon Missile Systems to ensure an undeveloped buffer around the defense contractor. County Administrator Chuck Huckelberry wants the board to approve the purchase to prevent more of what he’s called “unwise urban encroachment.” Huckelberry wants the supervisors to approve the $5.9 million acquisition of two parcels south of Raytheon near South Nogales Highway and Hughes Access Road. Money for the purchases would come from the county’s general fund and recent sale of the Posada del Sol Healthcare Center. The real estate investment company Auriga Properties owns one of the parcels, which the county would buy for $3.7 million. Local developer Donald Diamond is the president and CEO of Auriga Properties. First Tucson Airport Investors owns the second property, for which the county would pay $2.2 million. It is owned by Lawrence Cutler, according to public records filed with the Arizona Secretary of State.

February 20–26 Ritz-Carlton Golf Club, Dove Mountain 6501 Boulder Bridge Pass Tickets: www.worldgolfchampionships.com Or call the Tucson Conquistadores (520)571-0400

Golfer Luke Donald looks forward to defending his title and especially enjoys the one-on-one challenge of Match Play.

By Roger Yohem Inside Tucson Business For Luke Donald, the world’s topranked golfer, it’s hard work trying to win a million bucks in a tournament. For the Tucson Conquistadores, it’s hard work trying to earn a million bucks in the Accenture Match Play Championship by helping out. Starting Monday (Feb. 20), the work ethic of both Donald and the Conquistadores will pair up at the Accenture Match Play Championship to be played through Feb. 26 at the Ritz-Carlton Golf Course, Dove Mountain in Marana. This is also the Conquistadores’ 50th anniversary. “The number one ranking is and isn’t important. Certainly, it is something to be proud of. But it’s the process, the hard work that leads you to it over time that is more rewarding. You put yourself in contention to succeed,” Donald said at the Feb. 13 media day preview for the championship. Donald is the defending champion, the PGA Player of the Year and the top money winner in both the European and PGA rankings. The Accenture championship brings together the world’s top 64 golfers playing head-to-head, hole-by-hole in the only match play event on the professional circuit.

For the Conquistadores, tournament chairman Rocco Bene also follows a rigid process of hard work, overseeing 52 fellow members who oversee 900 volunteers who work the event. That frees up Conquistadores’ president Steve Glaser for community outreach. “Our business model can be a little complicated to achieve. If the weather cooperates and the right people win going into Sunday, there’s over 100,000 in attendance,” Bene said. “Unlike other tournaments that sell themselves as a big party, we are a more intimate gathering.” Since the event came to the Tucson region in 2007, the PGA partnership has raised $7.5 million for local youth charities. Most of the beneficiaries work with kids who are disadvantaged, and mentally and physically challenged. Last year’s “payday” was $1.3 million. “It’s pure revenue-sharing. Through a contract with the PGA, we do the ticket sales and program advertising,” Bene said. Bene personally took ticket sales to a higher level this year by partnering with 22 Fry’s Food Stores and 10 Costco Wholesale stores to help “reach the masses. It is a great charitable connection for the stores and both companies are donating back 100 percent of ticket sales,” he said. “For the kids, we have to sell every ticket we can.”

The Conquistadores also sell tickets to the tented hospitality suites at the championship, a product “that spikes high revenue for us.” Depending on the package, prices range from $500 to $46,000. PGA Tour President David Pillsbury confirmed the championship will remain in the Tucson region through 2014, the length of Accenture’s sponsorship agreement. For fans, there are several major changes this year: • Parking will be off Dove Mountain Boulevard and Tangerine Road, eliminating longer bus rides. • Cell phones will be permitted, though with restrictions on their use. • Fans will be allowed onto the fairways on the final day, Sunday, to follow the leaders during the championship rounds. “I really look forward to match play. It’s different and makes for very interesting TV. I especially enjoy the one-on-one challenge, it’s tough, you either play well or go home. I think all the players really enjoy that,” said Donald. “Every match is do or die, that’s what makes it exciting for the players. Match play is a different strategy, anything can happen.”

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

InsideTucsonBusiness.com

FEBRUARY 17, 2012

NEWS

Casino Del Sol unveils plans for golf course, Jack Nicklaus Academy “Our primary goal at the academy will be to introduce fun back into playing golf.”

By Lee Allen Inside Tucson Business Now, more than three months after the Nov. 11 opening of the $130 million, 10-story Casino Del Sol Resort Hotel, the Pascua Yaqui Tribe is embarking on the next major component of the resort: the Sewailo Golf Course. But wait, there’s more. The 18-hole golf course, announced Thursday (Feb. 16), is designed by Notah Begay III, the first full-blooded Native American on the Professional Golfers Association tour. And on its heels, comes word of yet another related coup: the first Jack Nicklaus Academy of Golf to be built in Arizona. These are both parts of what Sol Casinos President and Chief Development Officer Mark Birtha promised in November would be the mission “to create a boutique property with all the bells and whistles of a Las Vegas resort.” Ted Simons, chief operations officer of the Nicklaus Academies, says, “We’re not all going to be a Golden Bear or a Tiger Woods, but we can all go out and have fun with the game.” He adds, “Our primary goal at the academy will be to introduce fun back into playing golf.” Already providing instruction at 22 academies in 10 countries around the world, this will be the first Nicklaus Academy built on Native American soil. “When the facility is completed (tentative grand opening slated for Dec. 12), it will be unique, customized for the client and the market with different mixes of technologies and teaching tools,” Simons says. “We’ve got the most advanced, fullyintegrated technologies of anyone in the marketplace. Everything will be there to not only enhance the learning experience, but to shorten the learning curve.” The Nicklaus Academy bunkers, greens, and grass will replicate the design of the Sewailo course. Because it’s not inside private gates nor restricted to hotel guests, the academy will be open to anyone seeking individual hour-long, half-day, full-day or multiple-day lessons. “We’ll hold women’s-only clinics, corporate golf schools, specialty clinics on how to maximize distance and accuracy off the tee, or the short game from 100 yards in. Our instruction, led by veteran Mike Malaska, will provide a non-intimidating introduction to a variety of golf programs.” In conjunction with the Casino Del Sol Hotel, the academy will be able to create vacation, “stay-learn-play,” opportunities. The comprehensive training/practice facility, which will be separate from the golf

—TED SIMONS

course driving range, includes: • A 375-yard dual-ended driving range • 2,000 square feet of climate-controlled teaching studios • A large putting green, chipping green, and pitching green • Multiple practice bunkers, both greenside and fairway, mirroring actual course bunkers • An uneven lie practice area • Target greens from 50-yards and up for distance control practice And, yes, to answer the inevitable question. While there are no absolute guarantees, plans are being made to ensure the man who won 18 professional major championships — the man Golf Inc. magazine called “The Most Powerful Person in Golf” — will be on hand for the dedication of his namesake academy. A lot of dirt is currently being dug west of town on the Pascua Yaqui tribal village, home to the recently- opened 10-story-tall $130 million Casino Del Sol Resort with more announcements forthcoming. At the November 2011 resort ribbon cutting, Sol Casinos President and Chief Development Officer Mark Birtha promised more development was in the works — “a giant retail master plan, a golf course, anything from frozen yogurt stands to hundred mil-

lion dollar developments. Our mission is to create a boutique property with all the bells and whistles of a Las Vegas resort.” All signs point to more progress toward that goal with an imminent announcement concerning construction of the Sewailo Golf Course destined to join the 3 Tucson courses that have already made Golf Digest’s list of 75 Best Golf Resorts in North America — Ritz-Carlton (Dove Mountain); the Lodge at Ventana Canyon, and Loews Ventana Canyon. “We’re fortunate our tribal council members are patient and have a long-term outlook approaching development. We are focused on the direction the tribe wants to go in the future — new projects and new ways to enhance our amenities on the current property,” says Birtha. The Nicklaus Academy bunkers, greens, and grass will replicate the design of the pending tribal course. Because it’s not inside private gates nor restricted to hotel guests, the Academy will be open to anyone seeking individual hour-long, half-day, fullday, or multiple-day lessons. “Our teaching philosophy may not be as sexy as some that grace the covers of golf magazines. For us, it’s a golf ball and a club head and how those two interact is the key. If you can start the ball down a target line and control its distance, you have a chance. Doesn’t matter how many X factors — you’ve got to get the club face squared up to the golf ball. End of story.” The economic impact to the Tucson area is unknown, but positive. “We have the luxury of having a hotel here so we can create Stay-Learn-Play packages for guests. This is a big parcel of land and we’ve been able to take a blank piece of canvas and design a full-size range with putting, chipping, pitching, and private tees for private lessons. We can do multiple events without people being on top of each other,” says Simons. “What we bring to the golfing population of Southern Arizona is a public facility offering branded instruction.”

This Week’s

Good News D-M up for award Davis-Monthan Air Force Base under Col. John Cherry, commander of the 355th Fighter Wing, is one of two finalists for the Air Force’s 2012 Commander-In-Chief Installation Excellence (CINC IE) award to be announced this Spring. The winner receives a $1 million cash prize that’s to be used for quality of life enhancements on the base. A board visited D-M last month to observe the base’s performance in a variety of categories, including airfield, mission operations and housing managmement. Last October, D-M was named the best installation in the Air Combat Command. It is now competing with Barksdale Air Force Base near Bossier City, La. The CINC IE award was created by President Ronald Reagan in 1984 to help promote innovative and creative ways of enhancing base-level services, facilities and quality-of-life.

The Tucson

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

Lewis out at Rio Nuevo The Rio Nuevo Multipurpose Facilities District Board allowed the contract of executive director Larry Lewis to lapse earlier this month. Lewis was paid $10,000 a month for six months as an independent contractor. It’s not entirely clear what got accomplished under Lewis. The district only this week managed to get a searchable database of financial information on its website, even though that was one of the primary charges two years ago when the Legislature installed the new board. The Tucson Convention Center isn’t on any firmer ground, literally. Even a computer-printed sign posted on the locked front door of Rio Nuevo’s office in the State Building downtown read: Rio Nuevo Multipurpose Faculties District. To be fair, it’s becoming clear the board may not have wanted Lewis to do much in the first place. In advertising for his replacement, the board is looking for an “operations administrator” to be paid a salary starting at $29,000. W FOLLO ADER THE LE

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6 FEBRUARY 17, 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.

BANKRUPTCIES

Revenue, customer service and partnerships are Rothschild’s goals

Chapter 11 Business reorganization CDEX Inc., 4555 S. Palo Verde Road #123. Principal: Jeffrey K. Brumfield, CEO. Assets: $425,725.00. Liabilities: $2,805,824.65. Largest creditor: Gemini Master Fund Ltd, San Francisco, $927,437.65. Case No. 12-02402 filed Feb. 10. Law firm: Eric Slocum Sparks Thomas L. Culpepper and Pamela O. Culpepper, 6050 E. Miramar Drive. Principal: Thomas L. Culpepper and Pamela O. Culpepper, joint debtors. Estimated assets: More than $500,000 to $1 million. Estimate liabilities: More than $500,000 to $1 million. Largest creditor: Not filed. Case No. 12-02530 filed Feb. 13. Law firm: Eric Slocum Sparks

FORECLOSURE NOTICES Spring Mill Properties Inc. 505 E. Elm St. 85705 Tax parcel: 115-02-134C Original Principal: $89,600.00 Beneﬁciary: Washington Federal, formerly known as Washington Federal Savings, Phoenix Auction time and date: 11:30 a.m., May 2, 2012 Trustee: Larry O. Folks, Folks & O’Connor, 1850 N. Central Ave., Suite 1140, Phoenix

LIENS Federal tax liens Frenchville Enterprises LLC and Shane R. French, 2634 N. First Ave. Amount owed: $26,419.01. Desert Sky Collision Inc., 501 N. Eighth Ave. Amount owed: $99,689.91. Western International Aviation Inc., 5951 S. Wilmot Raod. Amount owed: $2,378.06. All State Inspection Inc. and James Melendez, 6841 W. Rifle Way, Marana. Amount owed: $26,559.30. Go Printing Inc., 861 S. Osborne Ave. Amount owed: $21,533.94. El Mezon Del Cobre and El Mezon Del Cobre Inc., 2960 N. First Ave. Amount owed: $1,492.90. Horizon West and Dimeglio Landscaping LLC, 3344 N. Flanwill Blvd. Amount owed: $18,672.96. Formula I Ltd., 596 E. 23rd St. Amount owed: $21,251.61. Law Office Lenore Tsankanikas PLLC and Lenore Tsakanikas, 239 N. Church Ave., Suite 101. Amount owed: $7,087.22. Long Wongs and O.B. Wong LLC, 2500 E. Sixth St. Amount owed: $16,571.03. Arizona Moda LLC and Parisa Arabshahi, 7827 N. Ancient Indian Drive. Amount owed: $11,383.64. Cimaco Floor Service Inc., 3812 E. 37th St. Amount owed: $19,747.38. Law Offices Dan W. Montgomery and Danny W. Montgomery, 432 E. Speedway. Amount owed: $2,151.58. Checkered Flag Construction LLC and Armando R. Rico, 3042 W. Carnauba St. Amount owed: $2,850.05. Sierra Mining & Crushing LLC and Shane R. Madsen, PO Box 22110, 85734. Amount owed: $5,590.69. Huachuca Concrete Inc., 7777 E. Valencia Road. Amount owed: $194,755.71. Dimension 3 18 Limited Liability Company and Nancy C. Nolan, 9281 N. Sea Otter Place. Amount owed: $34,335.47. Val’s Trucking and Valentine Kozielski, PO Box 950, Sahuarita. Amount owed: $21,827.36. Southwest Airport Services Inc., PO Box 11189, 85734 (7250 S. Tucson Blvd.). Amount owed: $10,528.42. DAR Tile LLC, 4300 W. Bilby Road. Amount owed: $24,040.90. J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $113,397.04. Masonry By Design Inc., 4101 W. Barque Drive. Amount owed: $4,810.40.

George Howard photos

NSEW LLC 7368 N. La Cholla Blvd. 85741 Tax parcel: 225-45-142 Original Principal: $419,000.00 Beneﬁciary: Compass Bank, Dallas Auction time and date: 11:30 a.m., May 7, 2012 Trustee: Adam B. Nach, Lane & Nach, 2025 N. Third St., Suite 157, Phoenix

Tucson Metro Chamber’s Mike Varney, left, has high hopes for improved business relations with Tucson city government. Mayor Jonathan Rothschild, right, plans to pursue annexation as one of his goals.

By Roger Yohem Inside Tucson Business As Tucson’s new mayor, Jonathan Rothschild has an ambitious list of administrative goals. His vision is broad and includes a fresh perspective on city government, the business community and many constituency causes. His focus is on growing revenue for both the public and private sector, getting better customer service from city employees, and not making the same administrative and public policy mistakes once the city regains its financial stability. With enthusiasm, Rothschild offered his platform to just under 1,000 attendees at the State of the City address presented by the Tucson Metro Chamber Feb. 14 at the Tucson Convention Center. “We have an opportunity to remake our city government, to address our long-term concerns, assert our role as the largest city in Southern Arizona, and fulfill our commitments to our citizens. In short, to make Tucson work,” he said. “This means putting people back to work, making city government work, and establishing partnerships to find creative solutions to our long-term challenges.” To address the need for money, the decades-long issue of annexation is back in play. Additional state-shared revenues from annexation will help fund Roth-

schild’s “back to basics” plan that focuses on core services such as police, fire, street maintenance, parks, transit, water and sanitation. “For years, we’ve heard the reasons for annexation, but we have not heard how we go about annexing. It’s simple, we have not put the necessary resources into the project,” he said. “We will look at where annexation makes sense and train a small staff and volunteers to go door-to-door and make the case,” he explained. To accomplish this, he hopes to partner with the mayors of Marana, Oro Valley and Sahuarita and has invited them to participate in this ambitious process. His focus on customer service targets two well-known, long-standing thorny issues with the business community: Development Services and the Land Use Code. Since taking office in December, Rothschild said he has been working with Development Services “to streamline” the permit review and approval process. For over three years, the business community has been pressuring city staff to reform the Land Use Code. Many city officials admit that it is a convoluted, self-contradictory policy, one that Rothschild has called crazy in the past. Financially, sales tax revenues are up about 4.6 percent and the city’s budget situation is slowly improving. That will allow the city to avoid any further layoffs, furloughs

and cuts to basic public services. However, as revenues recover, the city also faces higher fixed costs and expenses. “Long-term issues, aging infrastructure in both roads and transit systems, and rising pension costs, must be addressed,” said Rothschild. “There is no simple solution. Everything will be on the table: Charter reform, dedicated revenue streams, bonding, transit reform, compensation and annexation.” As the economy recovers, Rothschild’s analysis of government’s public policymaking and spending habits was very astute, stating that “it will be tempting to go back to how we’ve done things in the past. It is imperative that we not fall into that trap.” Mike Varney, CEO of the Tucson Metro Chamber, praised Rothschild for the business-friendly tones coming out of City Hall during his first 60 days in office. The business community “is being heard and being taken seriously. We look forward to ongoing work with the city to pursue partnerships,” he said. Varney acknowledged that the chamber and Rothschild will not agree on every public policy, regulation or issue, but clearly Varney appreciates Rothschild’s style of open communications and sincerity. Contact reporter Roger Yohem at ryohem@ azbiz.com or (520) 295-4254.

InsideTucsonBusiness.com

FEBRUARY 17, 2012

GOOD BUSINESS TECHNICALLY SPEAKING

What you need to know about brute force, scraping and hacking Not long ago a senior-level professional said about her association, â&#x20AC;&#x153;Our website got hacked.â&#x20AC;? The next day, several more people were asking, â&#x20AC;&#x153;Did our site get hacked?â&#x20AC;? The answer was no. It got scraped â&#x20AC;&#x201D; not compromised and not hacked. The lingo sounds like a mixture of spy thriller and boxing movie. Professionals of all kinds might want to know what the terms mean, why anyone should care and what can be done about these threats. â&#x20AC;&#x153;Scrapingâ&#x20AC;? involves using a â&#x20AC;&#x153;botâ&#x20AC;? â&#x20AC;&#x201D; a program or application â&#x20AC;&#x201D; to copy information out of a website for unauthorized used. Because websites must be viewable to visitors, a program can be used to scrape out the content. Hereâ&#x20AC;&#x2122;s an example, with the offender left anonymous. One online event calendar gets nearly all its content by scraping events out of other sites and compiling them. This approach is called a mash-up. Often itâ&#x20AC;&#x2122;s easy to identify a mash-up. In this example, the siteâ&#x20AC;&#x2122;s event calendar shows the University of Arizonaâ&#x20AC;&#x2122;s Menâ&#x20AC;&#x2122;s Basketball game as taking place from 7 p.m. to 12 a.m. â&#x20AC;&#x201D; thatâ&#x20AC;&#x2122;s a long game â&#x20AC;&#x201D; at 1401 East University â&#x20AC;&#x201D; an address mapped by Google and Mapquest near Old Main and not McKale Center, 1 National Championship Drive, which is the correct location. Aside from annoying event managers by providing the wrong times and addresses for events, scrapers also offend people by spamming them. A scraper can copy email addresses from a site, dump them into a database and use them to spam people. Thus the professional who was reporting â&#x20AC;&#x153;our site got hackedâ&#x20AC;? would have been correct saying, â&#x20AC;&#x153;our site got scraped.â&#x20AC;? Code can be added to the front of Web pages making it harder for scrapers to work, but this kind of code, badly written, will keep out search engines as well as scrapers. That can have a devastating impact on search-engine ranking. The term â&#x20AC;&#x153;hackedâ&#x20AC;? can also be misleading because it means different things to different people. A â&#x20AC;&#x153;brute forceâ&#x20AC;? attack on a website, in order to gain access to it, involves using a program that randomly tries millions of combinations of words and phrases to gain access to the website, usually through a siteâ&#x20AC;&#x2122;s backdoor â&#x20AC;&#x201D; the FTP access that enables site management. Hackers look for points of entry through the code itself, which may be faulty, or by intercepting email in which one person is telling another a siteâ&#x20AC;&#x2122;s username and password. You can protect yourself against hackers. Take the creation of a password seriously. The minimum standard is a password that is

eight characters and includes a combination of numbers, letters, upper and lower case and punctuation. A password should never include your user name or other DAVE TEDLOCK easily obtained details, like street addresses or phone numbers. It can be a nuisance to create a completely nonsensical, hard-to-remember password, but using one is an important step you can take. Remember, too, to use a different password for every site or account. If one site or account you have is compromised (accessed), the hackers can try your password in other places. At a minimum, sensitive accounts â&#x20AC;&#x201D; for example, anywhere your credit card or financial information is stored â&#x20AC;&#x201D; should have unique passwords. Encryption can also help protect your personal information, especially if you use your laptop or iPad on public Wi-Fi networks â&#x20AC;&#x201D; at the neighborhood coffee shop, or at the airport, for example. See if your email provider offers secure (encrypted) access. Lastly, if you must convey usernames and passwords to other people, go retro and use the fax machine or make a phone call to send the information. Otherwise, a would-be hacker might find a copy of your email message, along with a billion others, on an email server somewhere by simply doing a search for the phrase â&#x20AC;&#x153;password.â&#x20AC;? Most of all, use common sense. I know of one entrepreneur who did a great job of creating a 12-character, random password. The username was equally complex. The problem was, both were so complex that a person in that office had written the username and password on a Post-It Note, labeled them, and attached the Post-It to the computer screen! Anyone who was ever in the office could have simply jotted them down â&#x20AC;&#x201D; or just removed the Post-It. The Internet can be a rough and tough place to hang out as it is, so do all you can, before and after you get online, to avoid getting scraped and hacked and attacked with brute force.

Contact Dave Tedlock, president of the website development and marketing company NetOutcomes, at dave.tedlock@netoutcomes. com or (520) 325-6900, ext. 157. His Technically Speaking column appears the third week of each month in Inside Tucson Business.

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&

8 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

EXPENSE ACCOUNT

ARTS & ENTERTAINMENT

MEALS & ENTERTAINMENT

ARTS & CULTURE

Addictive cookie butter is back at Trader Joe’s

Fringe Theater Festival offers up five cutting-edge plays

There is a product called cookie butter. It’s addicting. Trader Joe’s stores introduced it to shoppers last holiday season. It’s a spread with a consistency similar to peanut butter and made from speculoos, a type of shortbread cookie that’s made in the Netherlands usually around the holidays. The mixture includes the spices nutmeg, cinnamon, ginger and cloves. From that you get what Trader Joe’s describes as an “unusual spread reminiscent of gingerbread and made with crushed biscuits.” How you describe doesn’t do it justice. It’s amazingly delicious. To the point: cookie butter is no longer just for the holidays. Trader Joe’s has repelenished its shelves with a new supply. It’s not a healthy treat but I doubt that will keep its fans from going back for more. • Trader Joe’s — www.traderjoes.com — 4209 N. Campbell Ave., (520) 325-0069; 4766 E. Grant Road, (520) 323-4500; and 1101 N. Wilmot Road, (520) 733-1313, Tucson; and 7912 N. Oracle Road, Oro Valley, (520) 797-4207.

Don Pedro’s for lunch Don Pedro’s Peruvian Bistro has introduced new daily lunch specials featuring a different entrée each weekday. The special is priced under $10, includes a fountain drink and a choice of soup or salad. Three new menu items making their debut on the specials menu are Tallarin Verde, a pasta dish with a green sauce made from basil and spinach, on Tuesdays; Estofado de Pollo, a chicken stew, on Wednesdays; and Cau Cau, a stew made with tripe, on Thursdays. The weekday lunch specials are

MICHAEL LURIA

Pizza for hockey On Sunday (Feb. 19), California Pizza Kitchen is partnering with the Wildcat Youth Hockey team to raise money and awareness for the Tucson Youth Hockey Association. Whether you dine-in or carry out, 20 percent of your bill will be donated to the association. You must bring in a flyer, which you can download from Tucson Mall’s website — www.tucsonmall.com events . As an added bonus the Wildcat hockey team will be in the courtyard outside California Pizza Kitlchen from 2-6 p.m. giving stick demonstrations. • California Pizza Kitchen, 4500 N. Oracle Road at Tucson Mall — www.cpk. com — (520) 407-5004

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

EVERY MORNING DAILY NEWS — DELIVERED TO YO YOU! OU!

S FREE TO

available from 10:30 a.m. to 2 p.m. The regular lunch menu is also available. • Don Pedro’s Peruvian Bistro, 3386 S. Sixth Ave. — http://donpedrosperuvianbistro.com — (520) 209-1740

A showcase of cutting-edge, experimental and uncensored theater and performance art, the second annual Tucson Fringe Theater Festival takes place next weekend at two venues: Beowulf Alley Theatre, 11 S. Sixth Ave., and Solar Culture, 31 E. Toole Ave. Five pieces will be performed three times each during the Feb. 23-26 span of the festival. • “The Barely Free Baja Spectacular!” spontaneously created by a performance company named One Gentle Mule, the show’s manifesto is “We shall secrete a concentrated but vast parody spectacle of New Old-Timey music, Fresh Bold-Slimy humor, miracles, vagabonds, politicians, maniacs, psychos, and freakishly good musicians! There will be no blood! Everything will be up for sale, and nothing shall be sold! We shall insist upon a Free Baja in the way only those from Baja may possibly understand! Fun will be had, and mayhem, and music! There will be no available exclamation points when we are through! And anyone from north of Sierra Vista shall be positively enriched by the unacceptability of the continued Maricopa Sheriff-ness of Massachusetts Joe! Do you dare not participate?” • “Lethal Fairy Tales” is a song cycle about the plight of those unfortunates who are encumbered by unwonted intelligence and thus feel alone and alienated in modern society. By explicitly following the instructions contained in these songs, however, these afflicted souls can finally throw off the shackles of reason and analysis and thus transform themselves into true Americans. • “Numb” is a tribute to the adult children recovery movement and shamanic self-knowledge. It’s about a

needy bride who after much rejection finds her peace in feeling her feelings. • “The Starter House,” a story of a young man who stumbles into an office without any HERB STRATFORD recollection as to how he got there (it was the hallway) or why he’s there (because that’s where the hallway lead). He attempts to unravel the riddle of where he is and what he’s doing there with questions such as: What is the mysterious salesman’s commission rate and can it be avoided? • “Unreality Shows: Three Short Plays” are “Happens All The Time” about a newcomer who joins a terminal cancer support group and begins asking tough questions, “Kids!” about two moms and their precocious kids who are joined by a handsome stranger and his child while spending a day at the beach, and “Is A Pig’s Ass Pork?” is a play set in a dystopian matriarchal society decades into the future. Tickets for each of the plays are $10 each or $7 for students and seniors. See the schedule and buy tickets online at www. tucsonfringe.org or Antingone Books, 411 N. Fourth Ave.

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

! B A T R E ETT L S W E HE N 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

PROTUCSON.PROBUSINESS.

InsideTucsonBusiness.com

FEBRUARY 17, 2012

SALES SALES JUDO

‘ARM’ing your revenue producers - Step 1: The right job fit This week we continue our efforts to attract, retain and motivate (ARM) revenue producers — the sales executives, account representatives, sales engineers, fundraisers, business development managers, brokers and professional service providers who are responsible for generating revenues. There are four general types of revenue producers: “hunters,” “farmers,” “specialists” and “non-selling professionals.” Each type requires different levels and kinds of job fit, compensation, recognition, management and support. Hunters may be called outside sales executives in the for-profit world or “directors of major giving” in the nonprofit sector. In mature organizations their primary functions are to add new accounts for growth and to replace lost revenues to maintain the base. They really have to scramble. If the growth objective of an organization is 15 percent per year and if 15 percent of revenues from existing sources are lost annually through defections, acquisitions and business failures, then they and their teammates, the farmers, must add 30 percent in new accounts. If the farmers can expand revenues by 10 percent from their existing clients through cross-selling and up-selling activities, then hunters are responsible for the rest. In organizations that are starting up or ramping up and haven’t yet reached break-even, hunters activity levels must be far greater. There will also be a larger proportion of hunters to farmers. Hunters and farmers are supported by specialists, often called sales engineers or proposal writers. While they may not have as much interaction with prospects or existing clients, their contribution makes or breaks most new business opportunities. Established organizations may have one or two specialists for every 10 hunters and farmers. Non-selling professionals have to do a bit of just about everything. True, sometimes they have marketing departments to beat the bushes for opportunities and specialists to write proposals or dazzle prospects with their technical virtuosity but all must actively network and prospect while delivering professional services themselves. Let’s begin with the job fit and compensation of hunters. These producers must continually prospect and, in the process, endure repetitive rejection without losing their drive, nerve or enthusiasm. They are extremophiles. Only a small percentage of the general population can tolerate and thrive in the heat and pressure of their environments. To illustrate this point, the “Disc Traits” table contains the percentages of 275,000

DISC — dominance, influence, steadiness and compliance — behavioral profiles. Only 12 percent of the profiles had the high “D” generally associated SAM WILLIAMS with tolerating repeated setbacks and 20 percent had the high “I” associated with extroversion. Only 1 percent had the low “S” associated with multitasking and rapid change and 12 percent had the low “C” associated with being able to perform without guidance or precedent. All four of these traits are usually found in high-performing hunters. The occurrence of all four together is uncommon and explains why good hunters are so hard to find. There are two important points: 1. Most of us without these traits can still “hunt,” but the problem is that we tire more rapidly and tend to return to the tasks for which we are best suited. 2. There are about six classic profiles for hunters, not just the one I’ve described here. If you would like to receive a copy of them, shoot me an email (the address is at the bottom of this column) and I’ll send you a pdf file containing all of them. How can you determine if a producer candidate has the required traits to be a hunter, farmer, specialist or non-selling professional? For Hunters, the best way is to hire only producers with demonstrated performance and to verify it by checking their W-2 and Form 1099 income. For all the traits, ask the candidate to take a DISC instrument and compare it to the classic DISC profiles for each position. Sometimes you will design a job for a producer that doesn’t fit the criteria listed above, and there won’t be a pre-existing classic profile to use as a template. Whenever this happens, you can produce a customized profile by answering a series of questions using the online Human Job Analysis provided by most DISC providers. Doing so will produce a draft for you to edit and modify until you are comfortable with the end product. A word of caution: If you produce a Human Job Analysis profile with identical DISC values of 3, 3, 3 and 3, you will have described a “flat-liner,” which is someone who is supposed to be all things to all people. Good luck with that, because you will have created a position that is guaranteed to fail. Likewise, if a candidate produces a flat-line DISC, check to see if there are any major stressors present or if the person has attempted to game the instrument.

motivate and retain. We’ll cover those in the next column on March 2.

Once you have brought someone on board with the right profile, remember that those without experience will still require training and coaching. If they have the right traits and aptitude, the training will stick far more effectively than if they don’t. The next step is to design compensation plans that reward, recognize performance,

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.

THE 4 TYPES OF REVENUE PRODUCERS Also known as

Primary Functions

Work Environment

Hunters

Outside sales, Major gifts

New accounts, major gifts, replacing lost accounts

Frequent failure, high activity level, prospeciting

Farmers

Account reps, CSRs, Donor stewards

Retaining and penetrating existing accounts

Frequent client touches, sandwiched between the organization and the client

Specialists

Sales engineers, Proposal writers

Sales support, technical competence

Key to closing, detail and precision-minded

New accounts, penetrating existing accounts, technical support

Multi-faceted: hunt, retain, penetrate and service

Non-selling Accountants, Attorneys, Architects, professionals Engineers, Bankers, some Doctors

DISC TRAITS Percentage of high and low traits taken from sample of 275,000 DISC proﬁles

D Dominance

I Influence

S Steadiness

C Compliance

High

12%

20%

31%

Low

11%

12%

DISC Traits of Successful Producers Hunters

4-5

1-2

4-5

3-4

Specialists

1-2

3-4

4-5

Non-selling professionals

4-5

Farmers

5 = Very high

4 = Medium high

3 = Middle

2 = Medium low

1 = Very low

W FOLLO DER A E L E TH

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10 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

FEBRUARY 17, 2012

PROFILE

Metal supplier finds growth in specialty services Carlos Ruiz has demonstrated that business growth can happen even during a down-turned economy. The key, he believes, is simply keeping a focus on the customers and being flexible enough to meet their needs. When Ruiz opened HT Metals in 2003, he never imagined the business would become as large as it has. In fact, last year he was recognized as a finalist for a Wells Fargo Copper Cactus award in the business growth category. His nomination stemmed from annual growth in the three years from 2008 to 2010 of 37, 46 and 66 percent respectively. HT Metals is now one of southern Arizona’s largest suppliers of metallic raw material and it’s the region’s only distributor of all specialty metals. He provides cutting services with his in-house equipment and retains a steady list of machine shop customers, many of which manufacture parts for the aerospace, medical and electronics equipment industries. Turbine engine and airframe components, diagnostic medical equipment and parts for data storage and retrieval devices are some of the products created from HT Metals’ wide range of materials. One client makes components for elevators. Ruiz formerly worked in the raw materials supply chain for Honeywell Engines and other companies in the Phoenix area. Before moving to Tucson to launch HT Metals, he surveyed businesses in the region about their need for a local supplier and received many positive responses. But the actual upstart was slower than he anticipated.

“I cold-called machine shops to see the potential here, but when I came back, they said they’re buying from someone else,” he said. Convincing them that a small business could service them as well or better than distributors in Phoenix was his biggest hurdle. “But I convinced enough of them so that I was able to grow and I got some key customers.” What sets Ruiz apart from other suppliers, he feels, is his knack for finding materials others can’t find and his ability to handle all aspects of material supply and management. “I act as a purchasing agent for some customers and I set up stocking programs and cut materials to size. By buying ahead in bulk and keeping inventory for the customers, I save them money.” Ruiz is also quick to point out that he purchases materials directly from distributors that won’t sell to machine shops. “There are things I can buy that the customers can’t so I’m on a level playing field with the distributors in Phoenix.” Ruiz feels it’s important that his manufacturing customers understand he’s not a manufacturer himself, so he’s not competing against them. In May 2010, HT Metals moved from its original location southwest of Palo Verde Road and Ajo Way into a larger facility across the street in Butterfield Business Park, expanding from 1,000 square feet to 3,000 square feet. With two fully automatic band saws, he had run out of space. And the extra room allowed him to add a waterjet machine and launch a new division, HT WaterJet. The purchase of the JetMachining Center came about primarily due to one customer who was using the technology regularly. As

BIZ FACTS

HT Metals/HT WaterJet 4650 S. Coach Drive, Suite 120 www.htmetals.com (520) 807-6157

J.D. Fitzgerald

By Christy Krueger Inside Tucson Business

Carlos Ruiz

much as it cost to sub out the work, Ruiz figured it would be a wise business decision to buy the equipment and do the cutting himself. Now, he says, all his major customers have used it. While the band saws are parting machines — cutting long pieces into smaller sections, the waterjet moves across flat metal and is able to cut profiles and intricate shapes, Ruiz explained. It also allows for a much closer, cleaner cut with little burring or distortion. In addition to metals, it can cut fiberglass, plastics, foam, granite, hardwood and other materials. Expansion plans for this year include reaching out to a wider area for new customers and adding a retail division,

possibly in the vacated space next door. “With retail, it’ll be a whole different set of people,” Ruiz said. “When people know you have it, they show up. They may be fixing a cooler or building a bench for the garage; it’s mostly hobbyists and do-it-yourselfers. We’ll keep pre-cut sizes in stock or for an extra charge we could cut it for them.” While the growth of his business has been a surprise to Ruiz, it’s always rewarding and educational. The best lesson he’s learned is the importance of taking care of those who have given him a chance. “Once you get a customer, it’s easier to keep the customer than to go out and get new ones. Once we get someone, we do everything to keep him happy.”

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INSIDE TUCSON BUSINESS

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MEDIA

Martha Vazquez, a sad end to long and solid TV career By David Hatfield Inside Tucson Business Of all the ways a TV news anchor can end a long and otherwise solid career, the route taken this week by Martha Vazquez has to be the saddest. She resigned from KVOA 4 Monday after being accused of shoplifting a $338 hoodie jacket and $30 earrings from Dillard’s in Tucson Mall two days earlier (Feb. 11). KVOA 4 officials would only say she resigned and that it was for personal reasons. While I have no specific inside information about Vazquez’s situation, her decision was most likely tied to the fact that, according to the police report, she admitted to stealing the items — though she also said she could have used a credit card and did in fact buy other items that day — which would run counter to a typical morals clause in her contract. Further, according to the police report, Vazquez acknowledged she would be trespassing if she were to be seen at either Tucson Mall or Park Mall, both of which are owned by General Growth Properties. That ban applied to her both “professionally and as a customer.” So shuts the door on a career that lasted more than 35 years, almost all of which was spent here in her hometown. A graduate of Cholla High School, Vazquez started working at KOLD 13 after graduating from the University of Arizona in 1976. KOOL-TV, the CBS affiliate in Phoenix at the time, hired her away but she returned to KOLD less than two years later. In the early 1980s she co-hosted the Tucson version of the nightly feature show “PM Magazine.” When that ended she became weekend anchor at KOLD and then moved over to KVOA 4 in 1984. Vazquez was the most high-profile Hispanic person on English-language TV in Tucson, though her popularity was probably waning. Although she was never KVOA’s main female TV anchor, Vazquez anchored numerous newscasts over the years. At the end she was anchoring only the station’s 4 p.m. news. To add further insult, KOLD’s 4 p.m. newscast, which was just launched in September, beat KVOA’s four-year-old newscast in the time period in the latest local Nielsen ratings. For the future, KVOA President and General Manager Bill Shaw said the station will begin a search for a new anchor. He said he anticipates the search would be both inside and outside the station. In the short-term, he said Kristi Tedesco is assuming the anchor role on the 4 p.m. newscast.

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Viewers should now be seeing KMSB 11’s local newscasts in full high-definition. The switch was to take place mid-morning Thursday (Feb. 16). The Fox affiliate is the last station in Tucson to show local live HD programming, now possible as a result of parent company Belo Corp. turning over the operations of it and KTTU 18 to Raycom Media’s KOLD 13 under a shared services agreement. KOLD began producing KMSB’s newscasts on Feb. 1 but needed more time to complete the conversion for the master control functions. The switch now means all of KMSB’s and KTTU’s programming will be run through a control room in Tucson. Under Belo, master control was in Phoenix.

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Parting rant As of today Comcast cable subscribers are seeing the West Coast high-definition feeds of Comedy Central, MTV and VH1 instead of the Eastern Time feeds. Cox Cable made the change last month. I don’t know who — if anyone — makes this decision but it’s clearly not something that will benefit either the viewers or do anything to help make the cable networks more successful. Viewers in the Mountain Time zone have become accustomed by the broadcast networks airing prime time shows from 710 p.m. as they are in the Central Time zone, instead of 8-11 p.m. as it is on the two coasts. Now take Comedy Central and its “Daily Show.” In the other U.S. time zones, the network’s marquee show has become a hit as competition to late local newscasts. While that was never the case in the Mountain Time zone, the show now winds up being shown at midnight competing with the likes of the last half of Jimmy Fallon on NBC and Craig Ferguson on CBS. In fact, today’s “Daily Show” is no longer available today to cable viewers in the Mountain Time zone. I get it that the Mountain Time zone’s small population is inconsequential on a national scale and that many of us have DVRs now but, really, is that Comedy Central and the cable folks want us to do? That means fast-forwarding through commercials.

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

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14 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

NEXT GENERATION

New University of Arizona institute to mine data deposit for private sector companies By Patrick McNamara Inside Tucson Business

BIZ FACTS

INSITE: Center for Business Intelligence and Analytics http://insite.eller.arizona.edu

J.D. Fitzgerald

The explosion of social media in recent years has left the digital landscape strewn with data. But more than mere rubble, the information hidden in the data could prove a goldmine for many businesses, according to Sudha Ram, University of Arizona McClelland Professor of management information systems at the Eller College of Management. “Really what social media is giving us is not the ability to network with friends, it’s giving us large amounts of data to mine,” Ram said. Ram is one of the creative forces behind INSITE, Center for Business Intelligence and Analytics. The idea behind INSITE is to help businesses make sound decisions based on the digital information around them and provide business clients with the knowledge to monetize social media. To better understand how Ram and her colleagues plan to do that, some explanation of social media is appropriate. The term generally refers to the second generation of the internet that has facilitated greater user interaction and participation. In its initial iteration, the Web was largely a passive media where users looked at or read material that others put online. In today’s Web world, users have become participants, interacting with and contributing to online content, often as a matter of course.

Sudha Ram

The universe of social media includes the most rudimentary online message boards, to news site comments pages to the now ubiquitous Facebook and twitter. “We’re in a paradigm shift because there are all these sources of data,” Ram said. In fact, the amount of data web users deposit each day is enough to fill the world’s libraries multiple times. In 2010, Google CEO Eric Schmidt estimated that as much data is generated over a standard two-day span now as was created from the dawn of mankind to the year 2003. Google alone produces more than 20 petabytes of data every day. Roughly translated, one petabyte is the equivalent of 250 billion pages of text. INSITE will compile and analyze select

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portions of data people deposit while using the various social media sites. Once Ram and others at INSITE weed through the information they and other researchers can start to identify patterns of behavior that would prove valuable to business clients. From that data they then can develop technologies and generate detailed reports to draw meaning from the data that businesses can use. “We want to work on the big problems that companies face,” said Paulo Goes, professor and MIS department head at the Eller College of Management. Marketing would be an obvious application for INSITE services, as their data analysis can help identify what customers want or locate potential new customer groups.

Their analysis also can track comments and discussions about businesses and products on social media. “What we want to be able to do is track portions of this data and take the pulse of humanity,” Ram said. Goes said the service also could prove valuable to companies with complex supply chains. INSITE’s analytics could be employed to locate supply chain bottlenecks and other hang-ups that can inhibit productivity. “If you’re able to monitor data, you can start to anticipate problems,” Goes said. INSITE plans to offer different membership levels with varying costs. Ram said a membership lasts for at least two years and can cost as much as $100,000 per year. Goes and Ram would not mention any companies they have spoken with about INISTE, but said the service they plan to provide would benefit the healthcare and drug manufacturing industries; retail and government sectors. The Center will also apply for matching funds from National Science Foundation and other federal sources.

Next Generation is a monthly feature of Inside Tucson Business profiling Southern Arizonans on the cutting edge of developing their ideas. If you’ve got an idea or someone you think should be profiled, contact reporter Patrick McNamara at pmcnamara@azbiz. com or (520) 295-4259.

InsideTucsonBusiness.com

FEBRUARY 17, 2012

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16 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

CAPITOL

Bill seeks to put more controls on Pima County bonding PHOENIX â&#x20AC;&#x201D; Saying Pima County abuses the voter-approved bond process and has misspent bond money, Southern Arizona Republican lawmakers are proposing a bonding oversight committee with veto power over the countyâ&#x20AC;&#x2122;s new bond proposals and changes in bonding projects. State Rep. Terri Proud, R-Tucson, says she drafted the legislation, with the help of the Town of Marana, because Pima County Administrator Chuck Huckelberry abusively wields power over property tax-paying county residents, and uses corrupt bait-and-switch tactics to reallocate bond money into other projects without public approval. Her bill (HB 2656), which passed the House Technology and Infrastructure Committee on a party-line vote and now heads to a vote by the full House, would create a sixmember Regional Bond Accountability Committee comprised of appointed officials from the regionâ&#x20AC;&#x2122;s five municipalities â&#x20AC;&#x201D; Tucson, Marana, Oro Valley, Sahuarita and South Tucson â&#x20AC;&#x201D; and the county. The committee would have veto power over any new bond plans or changes to approved bond spending. Supporters say the bill would create more

Hank Stephenson photo

By Hank Stephenson Inside Tucson Business

State Rep. Terri Proudâ&#x20AC;&#x2122;s bill would rein in Pima County bond spending.

transparency and more checks and balance in the bonding process, over which Pima County has too much control. Opponents say it could give three people representing less than 10 percent of the regionâ&#x20AC;&#x2122;s population the ability to kill a bonding project that would affect almost 1 million people in the county. As an example of the kind of corruption she says exists, Proud cited a $76 million 2004 bond for a new combined Tucson justice and municipal courthouse that still isnâ&#x20AC;&#x2122;t built. The county has already spent $59 million on the

courthouse, she said, and all they show for it is a dirt lot with a chain link fence around it. â&#x20AC;&#x153;Southern Arizona is really no stranger to corruption,â&#x20AC;? Proud said â&#x20AC;&#x153;I think this is a level of transparency that is needed in Southern Arizona. I think for too long we have had one man controlling everything, and I think that needs to stop.â&#x20AC;? But Huckelberry, who has been the target of this and other legislation, says Proudâ&#x20AC;&#x2122;s claim that the county has spent bonding money on unrelated projects, and her basis for the legis-

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lation, arenâ&#x20AC;&#x2122;t based in reality. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s an absolute fantasy and it never happens,â&#x20AC;? Huckelberry said. â&#x20AC;&#x153;There is a process for modification, but that happens very very rarely and then only with a good specific reason, and then only after public input opportunities usually by three different government bodies. Itâ&#x20AC;&#x2122;s one of the myths, I guess, itâ&#x20AC;&#x2122;s a great legend, but itâ&#x20AC;&#x2122;s not true.â&#x20AC;? When workers started excavating the land for the courthouse downtown on the east side of Stone Avenue, between Toole Avenue and Alameda Street, they found an old cemetery, which had to be excavated according to law. The project hasnâ&#x20AC;&#x2122;t exactly gone off as planned, Huckelberry said, but there are some things you just cant help. â&#x20AC;&#x153;If somebody would have told us 1,500 people were buried under this property we probably would have thought different about building a courthouse there,â&#x20AC;? he said. It ended up costing an extra $20 million to excavate the property, he said, and the county has shifted money to pick up the tab out of their general fund. Huckelberry said more than two-thirds of the bond projects from the last two cycles have been completed, and more than 95 percent of those were without any change to the plan. Though he admits there were problems with spending on bonds approved by voters in 1997, he said the â&#x20AC;&#x153;Truth in Bonding Actâ&#x20AC;? has made the process more transparent and made Proudâ&#x20AC;&#x2122;s legislation moot, unless the point is to try to stop bonding altogether. Marana Town Attorney Frank Cassidy, told the House Infrastructure and Technology Committee Pima County has consolidated its own power and has created a â&#x20AC;&#x153;culture of intimidationâ&#x20AC;? surrounding the bonding process. He said the committee makes their recommendations to the hundreds of projects included in the bond question, and Huckelberry runs a column of his own recommendations next to theirs. When they differ, the county administratorâ&#x20AC;&#x2122;s recommendations carry the day, Cassidy said. This legislation would give Marana and the other incorporated communities the power to have real input and a real vote in proposing bonds that they pay for in property taxes, he said. Proud says besides the allegations of Huckelberry abusing his power, the larger issue is that Pima County already has the highest bond debt in the state, and not much to show for it. â&#x20AC;&#x153;Most of the bonding is all about parks,â&#x20AC;? she said. â&#x20AC;&#x153;We spent $1.5 billion and thatâ&#x20AC;&#x2122;s what we get â&#x20AC;&#x201D; some freaking cactus. For $1.5 billion dollars, we should have Pima County looking like the god dang Wizard of Oz, like the Ritz Hotel.â&#x20AC;? Bonds are used all sorts of public improvement projects, including new roads, traffic and road safety improvements, psychiatric and emergency facilities, libraries, law enforcement communications equipment,

InsideTucsonBusiness.com

FEBRUARY 17, 2012

bridges, new building and repairs to government buildings, as well as parks and trails. Currently, a 25-member Pima County Bond Advisory Committee drafts bond proposals, which are then sent to the county board of supervisors, which decides whether to put them up for voter approval. The committee is made up of three appointments from each of the five county supervisors and Huckleberry; one from each of the five municipalities, and one each from the Tohono O’odam and Pascua Yaqui nations. Proud says this distribution waters down the input and influence of the cities and towns, and her committee would remedy that by giving their appointed representatives a real voice and vote in bonds. Rep. Sally Ann Gonzales, D-Tucson, voted against the measure in the House Technology and Infrastructure Committee, citing con-

cerns that it would take away representation by the Native American and rural communities that the current structure provides. However, the bill would not eliminate input and planning from the 25-member committee, and Proud asked if there’s no big change, why the opposition? Rep. Bruce Wheeler, D-Tucson, also voted against the bill in committee, saying he didn’t like the idea of three appointed people having the power to kill bonding for the whole county. “To me, this is an attempt to try to remedy a problem by creating another set of problems,” he said. “It is another layer of people involved, it could be controlled by a tiny number of unelected extremists who could kill any progress in our community.” Pima County is currently planning a bond package that could be put to voters in 2013.

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18 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

CALENDAR SPECIAL EVENTS

Fair Labor Standards, Break Time for Nursing Mothers Seminar Wednesday (Feb. 29) 11:30 a.m. to 1 p.m. Tucson Metro Chamber 465 W. St. Mary’s Road Contact: Cindy Brown cbrown@tucsonchamber. org (520) 792-2250 ext.154 Cost: $5 www.tucsonchamber.org 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

RSVP: James Patrick, james. patrick@stantec.com Cost: $20 members / $30 Nonmembers

REGULAR MEETINGS

Southern Arizona Chapter of the Society for Design Administration Fourth Tuesday Noon to 1:30 p.m. Viscount Suites Hotel 4855 E. Broadway Information: www.sacsda. com or tamara.g@wt-us.com RSVP: mormsby@ hmwstructural.com Cost: $20 members, $25 nonmembers

Southern Arizona Chapter of Enrolled Agents Third Tuesday 11:30 a.m. Knights of Columbus Hall 601 S. Tucson Boulevard Info: (520) 751-8986, www. aztaxpros.org/sacea Southern Arizona Architects & Engineers Marketing Association Third Tuesday 11:30 a.m. to 1 p.m. Viscount Suite Hotel 4855 E. Broadway

Southern Arizona Logistics Education Organization (SALEO) Third Wednesday

Pearl Nightclub 445 W. Wetmore Road Information: (520) 219-0266, WArnold@trayersinsurance.com or www.tbcnetworking.com RSVP: Not required Cost: Free to attend, free snacks, cash bar

Location and times vary Information: al@saleo, (520) 977-3626 or www.saleo.org Cost: $25 members and 1sttimers; $30 nonmembers Superior Business Networking First and third Tuesday 11:30 a.m. to 1 p.m. Info: (520) 631-7398, vthompson@az-health.com

Tucson Christian Business Connections First and third Thursdays 7 a.m. 3516 E. Grant Road Information: Robert E. Hinske, (520) 795-7195 or (520) 990-5374

The Annuity Doctor — Curt Zacharias Every Tuesday 3:30 p.m. Bookmans 6230 E. Speedway, Community Room Information: Curt Zacharias (520) 990-0009 Cost: Free

Tucson Computer Society Third Monday 6 p.m. (pre-session) 7 p.m. (meeting) Pima County Medical Society Auditorium 5199 E. Farness Drive Information: (520) 6254419 or www.aztcs.org Cost: Free *No meeting in September

Tucson Association of Executives Every Wednesday 6:30 to 8 a.m. Tucson Country Club 2950 Camino Principal RSVP: (520) 321-0879, taeofﬁce@aol.com

Tucson Downtown Sertoma Club First and third Wednesday 11:30 am to 1 p.m. Viscount Suites 4855 E. Broadway

Tucson Business Connection First Wednesday 5 to 7:30 p.m.

Information: www. tucsonsertoma.org RSVP: tdsertoma@yahoo.com Tucson Goal Getters Every other Sunday 1 p.m. Spill the Beans 2920 N. Swan Road Information: www.meetup. com/The-Tucson-GoalGetters or (520) 370-6961 Cost: $20 Tucson GLBT Chamber of Commerce Monthly breakfast meeting Third Thursday 7:30 to 9:30 a.m. Hotel Tucson City Center 475 N. Granada Ave. RSVP: (520) 615-6436 or info@tucsonglbtchamber.org Cost: $15 members, $20 guests Tucson Hispanic Chamber of Commerce Monthly Networking Luncheon Third Thursday 11:30 a.m. The Manning House 450 W. Paseo Redondo RSVP: www. tucsonhispanicchamber.org. Cost: $25 members, $30 nonmembers

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InsideTucsonBusiness.com

FEBRUARY 17, 2012

NEWS

New UA president has had full-circle journey By Patrick McNamara Inside Tucson Business

University of Arizona photo

It appears a near certainty the University of Arizona has found a new president. The decision is scheduled to be made final today (Feb. 17) by the Arizona Board of Regents. Temple University President Ann Weaver Hart paid her first visit to the UA campus Monday (Feb. 13). Hart was named the top candidate for the UA presidency, a position left open after former-President Robert N. Shelton resigned last June to take a job with the Fiesta Bowl. Since then, long-time agriculture college dean Eugene Sander was been interim president. “The journey seems to have come full circle to prepare me for this great challenge,” Hart told a group of about 100 people at the UA Student Union’s Gallagher Theatre. Hart said her experiences at Temple and previously at the University of New Hampshire helped to prepare for the UA job. As president, Hart said she plans to become an active member of the community within and outside of the university. “All of us who work and live in a great university should be involved in the community,” Hart said in response to a question from an audience member. Hart spoke of her involvements in nonprofit, business and community organizations in the Philadelphia area where Temple is located. Regents who attended a media question-and-answer session said they think Hart is the best candidate for the job. “We did what I believe was our charge, and that was to go out and find the best president,” said regent Dennis DeConcini, a former U.S. Senator. Regent Rick Myers said Hart has the experience in every aspect of university life from student to faculty and administration. “She’s a consummate leader who knows how to put together a team,” Myers said. Asked about how she would approach ongoing issues with state funding for the university system, Hart said she would work to build relationships with lawmakers. “You need to know people and they need to know you,” Hart said, adding that that is especially true of lawmakers. “You don’t want them to say, ‘Hart’s here, it must be budget time.’” She said Temple has endured budget cuts in recent years similar to what Arizona’s universities have faced. To cope with the cuts, she said, the UA should look to

WHAT THEY’RE SAYING

“We did what I believe was our charge, and that was to go out and find the best president.” Regent Dennis DeConcini, a former U.S. Senator

Ann Weaver Hart

developing additional revenue sources. One area where the UA has already begun to look for new revenue has been technology transfer. In December, Tech Launch Arizona was announced as an effort to monetize faculty research and bring associated technologies to market more quickly. Len Jessup, dean of the Eller College of Management, is overseeing the project while the UA looks for a permanent executive director. In 2010, according to an Association of University Technology Managers survey, UA researchers formed six startup companies, issued 64 licensing agreements and were awarded 16 patents. The survey says the university’s income from licensing agreements was $718,000. UA officials say total income was more like $1.25 million. Hart said she would continue to focus on technology and other university knowledge transfers. “I hope to be deeply involved in technology transfer,” Hart said. She was scheduled to meet with Sander to discuss the UA’s Tech Launch center and other technology transfer plans. Hart also answered questions about her choice to come to Arizona as opposed to Utah, her home state and where her alma mater, the University of Utah, had made an effort to recruit her. She said she and her husband had always intended to move to the West but that proximity to her native state was not the reason. “Geographically convenient is much different than geographically compelling,” Hart said, adding that she thinks the West would lead the nation in higher education innovation. Hart said a university in New York also

recruited her for a job. “This is where I want to be,” she said. Other issues Hart said she would focus on were academic medicine and graduation rates. On the latter, Hart said the university

needs to improve graduation rates and reduce the number of years it takes many students to complete a bachelor’s degree.

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

20 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

PEOPLE IN ACTION APPOINTMENTS The TMC Foundation, which supports Tucson Medical Center, has announced the appointment of Julie Wolfe Beadle as director of major gifts. Beadle has worked for more than a decade with the United Way of Tucson and Southern Arizona, most recently as vice president of resource development. In her new role at TMC Foundation, Beadle will work directly with Michael Duran, vice president and chief development officer, to build relationships with major donors. The TMC Foundation serves as both the development arm and grant-making body of Tucson Medical Center and TMC HealthCare. Oro Valley Town Councilman Barry Gillaspie has been appointed to the National League of Cities (NLC) 2012 Information Technology and Communications Policy and Advocacy Committee. This

committee has the lead responsibility for developing NLC federal policy positions on issues involving telecommunications and information systems, cable TV, phone services, spectrum issues, communications tower siting, universal service, broadcasting and defense of city rights-ofway from degradation caused by installation of communications facilities. As a member of the committee, Gillaspie will play a key role in shaping NLC’s policy positions, while advocating on behalf of America’s cities and towns on Capitol Hill, with the Administration, and at home. ELECTIONS Family practice physician Paul Gordon, MD, MPH, has been elected to a one-year term as chief of staff at The University of Arizona Medical Center – University Campus. Gordon will be the chief administrative

PAUL GORDON

officer for the more than 700 university and community physicians who practice at The University of Arizona Medical Center – University Campus. He also will serve as chairman of the hospital’s Medical Executive Committee. Gordon has been a board-certified family practice physician in Arizona since 1986. He received his medical degree at Mount Sinai School of Medicine in New York and completed his internship and residency in family medicine at the University of Rochester. He also completed a faculty development fellowship and Master of Public Health degree at the UA.

TONY PENN

BRIAN HAGEDON

{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. The Pima Association of Governments has elected it 2012 officers. They are: chair, Jennifer Eckstrom, mayor of South Tucson; vice chairman, Robert Valencia, Pascua Yaqui Tribe; treasurer, Jonathan Rothschild, mayor of Tucson. United Way of Tucson and Southern Arizona President and CEO Tony

INSIDETUCSONBUSINESS.COM

Local Biz News

ONE CLICK AWAY

Penn has been elected to serve on United Way Worldwide’s National Professional Council, a leadership body advising on issues of importance to United Way both nationally and in local communities. The council comprises 64 United Way CEOs in the U.S. and serves as a national leadership body for a movement of nearly 1,200 member United Way

organizations, advising United Way Worldwide’s president and providing leadership in building the United Way network in the United States. The UMC Foundation welcomes two new board members: Nancy M. Davis and James W. Murphy. Davis has volunteered with several Tucson non-profit organizations since moving to the community in 1999. Davis has a master of business administration in finance from Northeastern University in Boston. Murphy, vice president and financial adviser for Morgan Stanley Smith Barney, currently manages

the funds for 30 non-profit organizations in Tucson. A U.S. Army veteran with a bachelor’s degree in finance from Northern Arizona University, Murphy moved to Tucson with his wife 36 years ago and is committed to giving back to the community through volunteering. He is a past president of the Ronald McDonald House. GLHN Architects & Engineers, Inc. has announced the election of Brian Hagedon, AIA, to the firm’s board of directors and appointment as a principal. Hagedon joins President Bill Nelson, P.E.; David Grigsby, AIA; Roger Harwell, P.E.; Henry Johnstone, P.E.; and Ted Moeller, P.E. on the board. In his expanded role, Hagedon will head architectural design at GLHN, assisting the firm’s next generation of leaders as they advance their development in Building Information Modeling (BIM).

NEW HIRES Ethan E. Larson, MD, has joined the University of Arizona Department of Surgery Division of Reconstructive and Plastic Surgery as assistant professor. Larson performs all aspects of plastic surgery, including reconstruction of traumatic, oncologic or surgical defects, as well as breast reduction, body contouring and cosmetic surgery. Larson attended the University of Arizona, graduating summa cum laude with degrees in both microbiology and psychology. He attended the UA College of Medicine as a Dean’s Scholar. Larson completed his internship and residency in plastic surgery at Georgetown University in Washington, D.C. He received fellowship training in microsurgery and complex oncologic defect reconstruction at the University of Washington in Seattle.

InsideTucsonBusiness.com

FEBRUARY 17, 2012

BRIEFS GET ON THE LIST

Next up: Wedding planners, Convention and meeting facilities, Caterers Now that the 2012 Book of Lists has been published, we’re collecting data for the 2013 edition. Upcoming categories that will be published in the weekly issue of Inside Tucson Business are: • Feb. 24: Commercial photographers, Video and film production companies • March 2: Wedding planners, Convention and meeting facilities, Caterers • March 9: Acute-care hospitals, Rehabilitation centers, Nursing care centers and Home healthcare agencies • March 16: Environmental resources, Recycling firms, Janitorial services, Pest control companies • March 23: Airlines serving Tucson, Top airline destinations from Tucson If your company fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

PROFESSIONAL SERVICES

BBB warns of tax preparation scams The Better Business Bureau of Southern Arizona is warning that people should be cautious of tax preparers who claim they can get larger refunds than their competitors. According to IRS investigators, some preparers have used their clients’ personal information to file falsified returns and kept most of the fraudulent refund for themselves. The taxpayer is ultimately responsible for the accuracy of all information on a tax return, even if someone else prepares it. Individuals with fraudulent tax returns can face significant prison time as well as payment of back taxes with interest and penalties. BBB recommends following these tips from the IRS: • Avoid preparers who base fees on a percentage of the refund. • Use a reputable tax professional who signs the tax return and provides you a copy. • Consider whether the individual or the tax preparation firm will be around to answer questions about the tax return months, or even years, after the return has been filed. • Check the preparer’s credentials. Only attorneys, certified public accountants and

enrolled agents can represent taxpayers before the IRS in matters including audits, collections and appeals. • Find out if the preparer is affiliated with a professional organization that provides its members with continuing educational resources and holds them to a code of ethics. • Ask friends and family whether they know anyone who has used the tax preparer before and whether they were satisfied with the service they received. Report suspected tax fraud activity to the IRS immediately by completing a Form 3949-A, Information Referral. And the BBB’s website — www.tucson.bbb.org — has a checkable database. Check out any preparer with BBB by visiting www.tucson.bbb.org or calling (520)888-5353.

RETAIL

After 9 years, car wash firm buys locations here Car Wash Partners, which operates car washes and lube centers in 10 states, is now the owner of four car washes and two lube centers here in its hometown with the acquisitions of Capin Car Care Center locations. The newest acquisitions bring the company’s total operations to 78 car washes and 30 lube centers in 17 markets across the U.S. The company operates its car washes under the name Mister HotShine Car Wash & Express Lube Centers, often just Mister Car Wash. Officials say they will remodel and rebrand the four Tucson locations by May. The two car wash and lube centers acquired from Capin are at 6345 E. Tanque Verde Road and 8175 N. Oracle Road, Oro Valley. The two car wash-only locations are at 320 W. Irvington Road and 8215 N. Courtney Page Way, Marana. Details of the transaction were not disclosed. “We are excited to now be able to provide our services and products to our very own Tucson community after having operated from here for almost 13 years.” said CEO Ron Peterson. Mister Car Wash started with a single location opened in 1969 in Houston. It was acquired in 1996 by Car Wash Partners, which added seven locations. The corporate headquarters was moved to Tucson in 1999, although it did not operate locations here. In 2007, Car Wash Partners was purchased by ONCAP, a Canadian Private Equity subsidiary of Onex Corporation. The company has 45 employees at its corporate headquarters, 3561 E. Sunrise Drive, Suite 125. With the addition of the new Tucson locations, that will grow to nearly 200 employees, the company said.

Walgreens takes hit at pharmacy counter This year’s cold and flu season has turned out to be milder than expected and that’s one reason why Walgreens says its retail store sales were down 7.9 percent. The bigger reason, however, was prescription sales dropped 8.6 percent due in large part to the fact that Express Scripts dropped the retailer as part of its network as of Jan. 1. Express Scripts prescriptions accounted for 12.4 percent of Walgreens prescriptions in January 2011. Overall January sales totaled $5.8 billion, down from $5.93 billion in January 2011. Despite the loss of Express Scripts, Walgreens officials say they are continuing to develop relationships with employers, health systems, physician groups and other pharmacy benefit managers. Walgreens is the largest operator of pharmacy and drug stores in Southern Arizona, with 53 locations including 44 in Tucson, two each Green Valley and Oro Valley and one each in Marana, Sahuarita and Vail

ARCHITECTURE & DESIGN

Landscaping firms announce merger Santa Rita Landscaping and Southwest Enviroscapes Inc. have announced they are merging. Santa Rita Landscaping, founded in 1985 by brothers Brian and Garrett Ham, provides custom residential landscape design and installation, landscaping and grading services for home builders, and commercial landscaping and maintenance. Southwest Enviroscapes was founded in 1992 by Richard Spross and is a provider of landscaping services for the commercial and public sectors. Its recent projects included the Unisource’s new corporate headquarters and the Interstate 10 widening between Prince Road and 29th Street. Brian Ham, CEO of Santa Rita, and Spross, CEO of Southwest Envrioscapes, said the merger will allow both firms to provide a complete line of landscaping services. The merged companies are taking the name Santa Rita Landscaping Inc.

REAL ESTATE/LAND

Fairfield, Dorn launch Green Valley project Solterra, a 256-lot active adult community in Green Valley, is a new joint venture by Fairfield Homes and Dorn Homes. Located at 690 Observation Trail, the development features four floor plans sized from 1,400 to 1,991 square feet. Base prices run from $170,000 to $209,900 and each home surpasses standards set by the U.S. Government’s Energy Star Program, according to

company officials. “We are proud of our partnership with Dorn Homes and of the community we’ve created together. By the nature of their design, homes in this community will be up to 70 percent more energy efficient than the typical pre-existing home.” says Fairfield Homes CEO David Williamson. To reach the development from Interstate 19, exit Esperanza Boulevard and go west to Desert Bell Drive, then north to the community. More details are at www.SolterraAz.com.

GOVERNMENT

PAG’s 2011 aerial imagery available to the public Orthophotos — imagery captured through aerial photography — done in 2011 for the Pima Association of Governments (PAG) are now available to the public through online ordering at www.PAGregion. com. PAG contracted with Sanborn Mapping Co. for the project in April 2011. The aerial photos cover about 2,100 square miles of eastern Pima County and portions of Pinal and Cochise counties. Local jurisdictions use the data sets from the orthophotos for transportation, air quality, water quality and land use planning and in many other areas.

POLITICS

Barber gets nod from Giffords to replace her Ron Barber, the former district director of U.S. Rep. Gabrielle Giffords, is running for the seat held by his former boss until she stepped down last month to continue her recovery from being shot Jan. 8, 2011. Barber has already received the support of Giffords and her husband, former NASA astronaut Mark Kelly. Barber’s decision to run in the special election prompted the only other Democrat in the race, state Rep. Matt Heinz, D-Tucson, to step aside in the special election, though he is now considered a leading candidate in the regular election later this year in the new district boundaries. Meanwhile, there are five Republicans who’ve announced their intentions to run in both elections: State Sen. Frank Antenori, R-Tucson; marketing executive and TV broadcaster Dave Sitton; 2010 candidate Jesse Kelly; U.S. Army veteran John Lervold; and retired Air Force Col. Martha McSally, who was the first woman combat pilot. The special election primary will be April 17 and the general election is June 12. The winner will serve the remainer of Giffords term, which is due to expire Jan. 13, 2013. This year’s regular elections will determine who holds the seat in the new Congressional districts starting Jan. 14.

22 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE

Do you know the best way to save for retirement?

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

Financial professionals often follow two rules of thumb when providing clients with financial advice. First, they suggest clients save as much as possible in qualified retirement plan accounts, such as 401(k) plans and Individual Retirement Accounts (IRAs). Contributions to these plans generally are made with pre-tax dollars and they have the opportunity to grow tax-deferred. Second, they advise that retirees delay taking distributions from qualified accounts for as long as possible because no taxes are owed on qualified accounts until distributions are taken. As with many general rules of thumb, these principles are not accurate or reliable in every situation. Consequently, it is important to work with an advisor to evaluate your specific circumstances and determine the best course of action. Here are some issues that should be considered:

Southern Arizona presence

Taxable or tax-deferred? Should I save for retirement in taxable or tax-deferred accounts? From a financial planning perspective, it is beneficial to have a blend of qualified and non-qualified assets. This provides more opportunity to balance and potentially minimize income tax liability over time.

Traditional Roth IRA? Should I contribute to a traditional Roth IRA? Most of the time, the answer will be a resounding yes! I consider the Roth IRA one of the greatest retirement plans available, especially for younger participants who can potentially benefit more from compounding interest. If you are eligible to make Roth IRA contributions, the maximum annual contribution limits for 2011 and 2012 are $5,000 if you are age 49; and under and $6,000 if you’re 50 and over. Since there are adjusted gross income phase-out limits, be sure to verify your eligibility with your tax professional. There are some primary differences between a traditional IRA and a Roth IRA. Contributions to a traditional IRA are tax deductable and the earnings grow tax-deferred whereas contributions to a Roth IRA are not tax deductible but earnings grow tax-free as long as withdrawals are taken after age 59½. Remember you can still make contributions for the 2011 tax year until April 15, 2012.

Matching contributions Do you receive company matching contributions? If your company’s 401(k)

plan offers matching contributions, it is providing an automatic return on your investment. A company match of 50 cents on the dollar represents a 50 percent return on investment from day DREW BLEASE one, assuming you are 100 percent vested in the plan. When a matching contribution is available, it may be a good idea to contribute at least enough to the plan to receive the maximum match every year.

Qualified savings Should more qualified plan savings be set aside by an older spouse or a younger spouse? The answer depends on the couple’s goals and expectations. In general, an older spouse will be able to access qualified plan savings sooner than a younger spouse. However, a younger spouse will have more years to invest tax-deferred, which may mean that he or she accumulates more savings. If the younger spouse saves and accumulates more, his or her Required Minimum Distributions (RMDs) may be greater at age 70½. Since RMDs are taxed at ordinary tax rates, the long-term tax consequences should be considered.

Drawing assets Should I draw assets from a taxable or tax-deferred account first? Many people assume it is best to let qualified plan accounts grow tax-deferred for as long as possible. However, when you take a distribution from a qualified account, it will be taxed at your ordinary income tax rate. It may be advantageous to use a combination of non-qualified and qualified account assets to moderate taxable income over time. In addition, higher qualified plan distributions may affect the taxability of your Social Security benefits. There are many considerations when structuring retirement savings and retirement income plans. When combined, federal and state income tax rates often total 30 to 45 percent. It is essential to plan carefully and understand the tax implications of your decisions.

Contact Drew Blease, president and founder of Blease Financial Services, 7358 N. La Cholla Blvd., Suite 100, at drewblease@ bleasefinancial.com or (520) 299-7172.

Company Name

Symbol

Feb. 15

Feb. 8 Change

52-Week 52-Week Low High

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

AERG.OB CEXI.OB PRSC UNS

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 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.

0.06 0.02 14.98 37.53

0.06 0.05 15.24 38.05

0.00 -0.03 -0.26 -0.52

0.04 0.01 8.35 32.96

0.97 0.10 16.59 39.25

10.10 0.53 3.20 7.78 57.90 9.22 78.07 25.35 52.67 4.65 18.66 31.72 28.52 20.76 32.97 12.86 83.24 37.83 43.53 10.83 48.86 65.63 14.53 42.40 26.13 45.71 59.00 192.25 30.33 56.65 4.76 37.40 32.96 12.39 50.85 23.75 1.17 23.56 27.43 37.59 55.57 34.97 34.73 27.38 43.18 59.65 42.25 9.03 49.34 43.75 22.53 36.94 52.70 13.06 9.53 41.86 29.40 51.81 16.86 33.41 37.48 23.16 109.41 53.01 8.89 28.63 61.76 33.82 30.17 8.10 18.51

10.66 0.64 3.44 8.13 58.74 9.72 79.60 25.43 53.39 4.81 18.08 34.23 27.21 19.90 31.36 13.06 84.25 37.78 43.59 10.99 49.35 65.17 14.51 46.51 27.18 45.15 59.89 192.84 30.88 57.50 5.25 38.24 33.43 10.94 50.14 23.65 1.12 23.37 26.96 38.45 55.51 35.85 36.23 27.60 44.18 60.47 42.32 8.68 49.79 44.53 21.90 37.18 48.67 13.32 9.63 42.67 29.44 52.54 17.24 33.85 38.11 23.88 114.36 52.91 9.11 29.59 61.58 33.12 30.58 8.33 18.55

-0.56 -0.11 -0.24 -0.35 -0.84 -0.50 -1.53 -0.08 -0.72 -0.16 0.58 -2.51 1.31 0.86 1.61 -0.20 -1.01 0.05 -0.06 -0.16 -0.49 0.46 0.02 -4.11 -1.05 0.56 -0.89 -0.59 -0.55 -0.85 -0.49 -0.84 -0.47 1.45 0.71 0.10 0.05 0.19 0.47 -0.86 0.06 -0.88 -1.50 -0.22 -1.00 -0.82 -0.07 0.35 -0.45 -0.78 0.63 -0.24 4.03 -0.26 -0.10 -0.81 -0.04 -0.73 -0.38 -0.44 -0.63 -0.72 -4.95 0.10 -0.22 -0.96 0.18 0.70 -0.41 -0.23 -0.04

8.45 0.20 2.65 4.92 51.83 7.02 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 22.50 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 14.91 66.64 13.01 87.65 33.74 59.59 7.29 29.88 49.60 28.52 42.50 51.43 14.86 88.68 43.49 44.09 12.13 61.08 70.15 14.79 58.75 29.68 46.21 62.28 194.90 35.79 58.90 6.18 48.36 38.40 15.07 57.39 25.85 3.47 24.10 27.57 44.46 56.50 36.37 41.92 28.66 54.90 70.61 43.18 9.12 53.12 45.65 25.43 40.75 94.79 17.28 12.88 43.22 31.89 56.00 23.46 36.71 39.24 27.67 117.40 58.29 10.35 29.74 62.63 47.11 33.78 8.51 24.92

InsideTucsonBusiness.com

FEBRUARY 17, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Long Realty’s ‘heat map’ charts hot markets Sales and leases

For potential home buyers, sellers and investors who have a “show me” attitude toward real estate, Long Realty has drawn up the perfect illustration. It’s a “heat map” that CEO Rosey Koberlein describes as just a plain variation of that old real estate credo: location, location, location. “It’s an educational tool for agents and consumers, both buyers and sellers. Realtors have to have absolutely the best available information. For buyers, it educates them on how the market has turned. And if a seller is thinking of putting their home up, it helps them to see and understand the competition in the marketplace,” said Koberlein. The map is based on data from the Tucson Association of Realtors Multiple Listing Service. Long Realty analyzes where the most homes are for sale, and based on months of inventory, categorizes each zip code area into one of five “heat” categories. The categories are a hot buyer’s market, hot seller’s market, normal market, and two “in between” markets. A buyer’s market has nine months or more of inventory. A seller’s market has two months or less of inventory. Five to six months of product is considered a normal market. “The map validates that you cannot approach each zip code or subdivision or home exactly as another. Supply and demand influences price bands,” she said. For example, it is a buyer’s market on Tucson’s far northeast side and across sev-

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

TUCSON REAL ESTATE

2/6/2012

1/30/2012

$123,500 5,429 413 455 149

$130,000 5,551 421 471 233

Source: Long Realty Research Center

Otis Blank

By Roger Yohem Inside Tucson Business

Rosey Koberlein, Long Companies CEO, uses a “heat map” to educate home buyers and sellers.

eral zip code areas north of River Road and west into Marana. The key factor in those areas is high inventory. Due to supply-demand balance, most of the city’s western, central, eastern and southern areas are normal markets. When pricing is thrown into the equation, sellers have the advantage in the far southwest and areas surrounding Tucson International Airport. Since the beginning of the year, it has been a buyer’s market in zip codes 85658, 85715, 85716, 85718, 85737, 85739, 85749, and 85755. The in-between buyer-normal market is in 85750. The normal market is in zip codes 85735, 85745, 85713, 85701, 85705, 85704, 85712, 85748, 85641, and 85719. The in-between seller-normal market is in 85653, 85743, 85741, 85746, 85629, 85756, 85711, 85710, 85730, and 85747. Only two areas of the Tucson region are seller’s markets: 85757 and 85706. Long Realty created the map about four years ago “so our agents would have more expertise,” Koberlein said. But in response to the housing market crash, it is now generally available to the entire real estate com-

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

Current

Last Week

2/14/2012

One 12 Month 12 Month Year Ago High Low

3.88% 4.125%APR 4.00% 4.25%APR 6.18% 3.25% 3.56%APR 3.38% 3.625% APR 5.94% 3.00% 3.375%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, National Certified Mortgage Consultant (CMC) Peoples Mortgage Company, 1610 E. River Road, Suite-118 Tucson, Arizona 85718 • 520-324-000 MB #0115327. Rates are subject to change without notice based upon market conditions.

3.88% 3.25%

munity “to help everyone get through this tough market.”

Appraisers tap Baier Bruce Baier, owner of Baier Appraisal Services in Oro Valley, has been named 2012 president of the Southern Arizona Chapter of the Appraisal Institute. Baier is a commercial real estate appraiser with over 30 years of experience. Joining him as officers are vice president Michael Bernstein, M. Bernstein Real Estate Appraisers; secretary Sarah Baker, Baker, Peterson, Baker & Associates; and treasurer Robert Wenzel, Tucson Appraisals. Derrick Sinclair, Sinclair Appraisal Services, is the group’s immediate past president. Elected to the board of directors were: Carolyn Holliday, Pima County Real Property Services; Tom Harvey and Jeff Teplitsky, Baker, Peterson, Baker & Associates; Sarah Vetault, Compline Group; and Gordon Wicker, Quality Valuation. With more than 24,000 members, the Appraisal Institute is the nation’s largest organization of real estate appraisers. Baier said the local chapter has about 50 designated members and 35 associate members.

Sahuarita lot sale Tucson-based Rancho Bridge LLC has acquired 48 finished lots within the Rancho Sahuarita master planned community for just over $1 million. The land was sold by Pulte Home Corp., represented by Will White, Land Advisors Organization. Rancho Sahuarita is a 2,800-acre development in the town of Sahuarita about nine miles south of Tucson.

• Equilibrium Fund Prop1 LLC purchased the 101-unit Craycroft Gardens Apartments, 5402 E. 30th St., for $2.1 million from Mid-First Bank, the court-appointed receiver. Bob Kaplan and Allan Mendelsberg, Picor Commercial Real Estate Services, handled the transaction. • 4582 N. First LLC purchased a 4,300 square foot medical office building at 4582 N. First Ave., for $772,038 from Cinbin LLC, represented by Tony Reed, Long Realty Company. Randy Emerson and Gary Emerson, GRE Partners, represented the buyer. • The Drawing Studio leased 9,228 square feet lease at 33 S. Sixth Ave. from Gibson Family LLC, represented by Tom Knox, Picor. • Diversified Pharmacy Solutions LLC leased 5,288 square feet at 1171 E Rancho Vistoso Blvd. from Mountain Vista Plaza LLC, represented by John Yarborough, Romano Real Estate. • 42Six leased 4,930 square feet at 3280 E. Hemisphere Loop, Suite 198, from Tucson Property Investors LLC, represented by Pat Welchert, Picor. Paul Hooker and Tom Nieman, also with Picor, represented the tenant. • A Perfect Pantry leased 4,200 square feet at 21 E. Congress St. from Henriette Siebenberg Trust, represented by Tom Knox, Picor Commercial Real Estate Services. • Phoenix Bolt USA LLC leased 3,763 square feet at 3745 N. I-10 East Bound Frontage Road from Peacock Investment Builders Tucson II LLC, represented by Rob Glaser and Stephen Cohen of Picor. Gabriel Gastelum, Century 21 Success Realty, represented the tenant. • Rock Warehouse leased 2,470 square feet at 3710 S. Park Ave. from Gateway Industrial Park LLC. Jesse Blum and Ron Zimmerman, Grubb & Ellis, handled the transaction. • Subway leased 1,505 square feet at The Shoppes at Rita Ranch, 8140 S. Houghton Road, from Rita & Houghton LLC, represented by Aaron LaPrise and Brian Harpel of The Harpel Company. • Vineyard Services leased 1,200 square feet at 1101 W. Grant Road, Suite 205 from Sloat Family Partnership, represented by Steve Cohen of Picor. Ian Stuart of CBRE represented the tenant. • Southwest Cargo Systems leased 1,200 square feet at 3710 S. Park Ave. from Gateway Industrial Park. Jesse Blum and Ron Zimmerman of Grubb & Ellis handled the transaction.

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

24 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Deadline next week to nominate Up & Comers Some housecleaning chores this week. Would you look at that? The calendar says it’s Feb. 17 and that means next Wednesday is the deadline to submit nominations for this year’s Up & Comers. This is the 10th year readers of Inside Tucson Business have been asked to nominate people in their 20s, 30s and young 40s and are making DAVID HATFIELD contributions in the careers and the community worthy of special recognition. New for us this year is having the nominations come in solely from our website — www.InsideTucsonBusiness.com — and I must say I’m pretty impressed at what we’ve seen so far. I haven’t had a chance to stop and look at who is being nominated but I can say the number of submissions is more than in past years with less than a week to go. So I’m looking forward to this year’s honors. I’ve said it often before but this is a truly inspirational event. Over the years Inside Tucson Business has honored 81 Southern Arizonans and while I haven’t been here the entire time, it has been a privilege to meet those who’ve been honored the last seven years. If you haven’t already done so, please go to www.InsideTucsonBusiness.com, click on the Up & Comers logo and fill out a nomination form. Even if you have nominated someone already but would like to nominate someone else, you’re welcome to do it again. People can even nominate themselves if they’d like. If the form looks overwhelming or too time-consuming, please don’t let that stop you. We’re just looking for enough information so our judges can make good decisions. From readers’ nominations we’ll select 10 honorees who will be profiled in a special section included in the April 13 issue of Inside Tucson Business. We’ll also have a special event for this year’s and previous honorees.

Book of Lists By now regular subscribers should have received their copies of the 2012 Book of Lists. One of the other things I’ve learned since becoming the editor of Inside Tucson Business is that this is a tremendous resource, providing vital easy-to-use reference information about Southern Arizona businesses. Not only does it provide information on leading firms in 121 List categories, it tells who the key players are in each business and how to reach them. If you know somebody who would like a copy of the printed 2012 Book of Lists, we’re offering a special deal. For $30 new subscribers can get 52 weeks of Inside Tucson Business and this year’s book. Contact circulation manager Laura Horvath at lhorvath@azbiz.com or (520) 295-4220. The data in the 2012 Book of Lists is also available via an online download in Excel. The cost is $149. To get it go to the website — www.InsideTucsonBusiness.com — click on the Book of Lists tab on the black bar at the top of the page to get ordering information.

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

EDITORIAL

It’s time to stop trying to hurt schools Arizonans can consider themselves fortunate that most of the ideas put forth during a legislative session never make it into law. Some ideas don’t even make it into bills. Nevertheless, these ideas are worth something, if only to gauge sentiment for the potential of future legislation. Outside of the textbook scenario for “How A Bill Becomes Law,” what goes on in the Legislature has much to do with relationships — both within the governing bodies as well as with those outside. People who support and are involved in education, especially public education, are acutely aware of the need to stay on top of pending legislation. That’s because education has been a target of budget cuts for at least two decades. Gov. Jan Brewer has done a remarkable job of walking a fine line between those who support cuts in education and trying to play the heroine who comes in at the last-minute to rescue programs from being decimated. The latter was the case when she rallied behind the 2010 temporary 1-cent sales tax increase that’s set to expire at the end of May 2013. On the other side of the fine line, as part of her State of the State address this year, Brewer tossed out the idea that there should be changes so that charter schools can receive more funding but that those funding increases would not be available to public schools. In fact, it has been suggested that public schools should not be permitted to operate charter schools. Arizona has been a leading state in the growth of charter schools. Brewer and other lawmakers have long histories of pushing for tax credits for operators of both charter and private schools. All well and good. Choice and the competitive marketplace often makes things better. At the same time, though, it’s incumbent on families to thoroughly investigate all schools before deciding whether one is right for their child.

By law, public schools have to be all things to all people and accept all comers. That can be an expensive proposition for, say, special education. A charter school, while still a public school, can narrow its focus to the point that it will only appeal to certain students looking for a specific focus. And, guaranteed, that will never include special education. There’s no money in it. Private schools don’t even have to pretend to offer much in the way of special education. In the Tucson region, Vail Unified School District operates not only comprehensive public schools but also cutting-edge charter schools. Faced with declining enrollments, Tucson Unified School District (TUSD) in recent years has been forced to close schools. What could have happened, for instance, if TUSD had chosen instead to try some out-of-the-box thinking and shifted the focus of one of those schools to a charter? Richey Elementary School, the smallest of the schools closed had just 91 enrolled in its last year and half of them were Pascua Yaqui. Imagine if Richey could have been turned into a charter school with an emphasis and curriculum that would allow members of the tribe to excel educationally. It’s an opportunity that was never explored and now may be lost. The debate over education will continue. It seems there is no end to the amount of prescriptive ideas put forth to try to fix it. It’s right to set and expect that schools meet educational benchmarks and standards. There are instances of success in private schools, charter schools and public schools. Those should be allowed to flourish and expand. It’s not necessary for state leaders to continue to try to find ways to hurt the programs they don’t like. The marketplace will make that determination. Good schools will succeed and poor schools won’t.

InsideTucsonBusiness.com

FEBRUARY 17, 2012

OPINION GUEST OPINION

Plain and simple: The federal budget needs to create jobs Job creation and tax fairness are at the top of voters’ to-do lists for Congress. These days, instead of hacking and slashing investments in our future and creating more corporate tax loopholes, the national conversation is right where it should be: how we get America back to work. The Congressional Progressive Caucus (CPC), of which I am co-chairman, isn’t just listening to the national conversation — we’re going to follow through with action. We need a budget — not just this year, but every year — that returns “right to work” to its original meaning. Republicans hijacked the phrase to mean “the right to work without labor protections, without unions, without a safety net.” In the budget the CPC will introduce later this year, “right to work” means “right to work,” plain and simple. It means America creates good-paying jobs and doesn’t let millions of people struggle through no fault of their own. I can’t get into all the details yet, but if you’ve been looking for a plan that puts our country on the clear road to prosperity without putting all the burden on the middle class and lower-income families,

you’ll like what you will see. You’ll see a fairer tax code for corporations and wealthy individuals. You’ll see an end to tax loopholes that incentivize dirty-power RAUL GRIJALVA generation instead of real innovation and entrepreneurship. You’ll see plans big and small to create millions of new jobs in infrastructure, public safety, education and other key sectors. What this country needs more than anything is a return to the idea that people come first in our economy, not just numbers. There was a time not long ago when everyone, no matter their politics, agreed that our economy should work for all the people, not just a lucky few. Somewhere along the way, certain politicians decided they could start blaming poor Americans in their own states, the unemployed in their own hometowns and the union workers in their own neighborhoods

for the economic struggles they faced. That’s led us to where it’s acceptable for a leading presidential candidate to say with a straight face that he’s “not concerned about the very poor”. Any budget worth its name should make reducing the number of very poor Americans one of its top focuses. The sight of our own neighbors going hungry should not be common enough to slide into the background. It should still prick our consciences. In the United States, we don’t let people go down and then say we’re not concerned about them. The bottom line is that my Republican colleagues aren’t listening to the national conversation. They’re still using last year’s playbook: austerity, union-bashing, blaming the victims of the housing meltdown instead of the perpetrators. That’s why we’re going to see a budget from the House Republicans that treats cutting child nutrition and inventing new corporate tax cuts as responsible decisions. At this late date, after years of blaming working families for layoffs and letting big corporations keep billions of dollars they owe us, my colleagues across the aisle are

still trying to do things the old way: Give those at the top everything and wait for it to trickle down. A good budget will be the opposite of trickle-down economics. It will be grownup economics, people-powered economics, family-first economics. It will rebuild our nation’s roads and bridges so people can get to work on time. It will keep schools, firehouses and hospitals open instead of closing them to save pennies that go to corporate tax cheats. It will, more than anything, reflect our values as a nation: fair pay for hard work, protections for employees as well as employers, proudly investing in our children and the nation’s future. That’s the real pro-family budget the American people want, and it’s the budget they deserve.

Contact U.S. Rep. Raúl Grijalva, D-Ariz., through his website at http://grijalva. house.gov/. Grijalva represents Arizona’s 7th Congressional District, which includes downtown Tucson and western Pima County. and is co-chair of the Congressional Progressive Caucus.

GUEST OPINION

Tesla SUV with wings or not, we should kill the electric car California passed a ruling last month requiring that 15 percent of new cars sold in the state meet a strict emissions standard of zero to near-zero emissions by 2015. Many environmental groups are praising the decision, which will require Californians to buy more electric, hybrid, and hydrogen vehicles. I was once enthusiastic about these cars, too. About 20 years ago, CNN showcased an alternative-fuel vehicle that I built with my own hands. I drove back and forth in front of the camera, smiling from behind the wheel of my two-seater electric and natural gas hybrid. I thought it was an especially beneficial solution to our environmental challenges. I was wrong. What counts as an alternative-energy vehicle and what doesn’t is hardly a straightforward reckoning. For instance, is an electric car a true alternative if its drivetrain is ultimately powered by coal, nuclear power, and lithium strip mines rather than petroleum? Electric vehicles don’t eliminate the negative side effects of vehicular travel. They simply move the problems elsewhere. This opens a space for PR firms, news pundits, environmentalists, and others to step in and define the terms of exchange to their liking. For instance, electric vehicle manufacturers claim customers can fill up for 10 cents

OZZIE ZEHNER

per kilowatt-hour, which they say works out to pennies on the mile. But if buyers intend to drive their electric car beyond the length of the extension cord from their garage, they won’t be able to take advantage of

that cheap electricity. They’ll have to rely on a battery they can only recharge a finite number of times before it must be replaced at considerable expense. The battery-construction step, not the “fuel” step, is the expensive part of driving an electric vehicle. Advanced batteries cost so much to fabricate that the 10-cent-per-kilowatt-hour “fuel” cost to charge them becomes negligible. Even though electric vehicles are moving to cheaper batteries, the costs of exhuming their required minerals extends far beyond simple dollars and cents. It takes a lot of fossil fuel to craft a battery. An analysis by the National Academies concludes that the environmental damage will be greater than that of traditional gasoline-driven cars until at least 2030. Even if mining companies clean up their

operations and engineers increase battery storage capacity (which they will, very slowly) there is still a bigger problem looming on the horizon: Alternative-fuel vehicles stand to define and spread patterns of “sustainable living” that cannot be easily sustained without cars. Even the most efficient hybrid or electric cars can’t resolve the larger ecological impacts of sprawl. Sprawl has positive and negative effects on Americans, but its intensification is clearly at odds with the long-term ideals of the environmental movement. The suburban architecture of fully disengaged homes and megastores, connected by wide streets and highways, has prompted a mass deployment of energy resources. This life isn’t just wasteful. It’s expensive, too. Relatively efficient city dwellers end up subsidizing new suburban road construction, power lines, sewers, and water mains – at a cost of about $13,426 per suburbanite, according to a recent study. Shifting from gasoline to electric vehicles starts to appear synonymous with switching a smoking habit from cloves to menthols. Even with all of the hype surrounding hybrid and electric vehicles, these machines are becoming somewhat of a cliché in some circles. Hybrid and electric vehicles may offer partial

solutions within certain contexts, but those contexts are looking to be frightfully limited. It isn’t acceptable for doctors to promote menthol cigarettes. Should environmentally minded people promote alternatively fueled automobiles? Some community groups are saying “No.” They’re showing how concerned citizens are better achieving their environmental objectives by supporting more durable options such as walkable neighborhoods, bicycling infrastructure, carpooling, traffic calming (incorporating physical features to slow or reduce traffic – wider sidewalks, roundabouts, etc.), and comfortable public transit. These transportation strategies have a proven track record of success in cities across the globe. Beyond their greening impact, they can also make cities more vibrant, affordable, and pleasant places to live. Green strategies that improve people’s lived experience, rather than emptying their wallets, have the potential to catch on. Now that’s genuinely energizing.

Ozzie Zehner is the author of “Green Illusions: The Dirty Secrets of Clean Energy and the Future of Environmentalism.” He is a visiting scholar at the University of California Berkeley. The best way to contact him is on Twitter: @ OzzieZehner

26 FEBRUARY 17, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Redistricting wasn’t perfect but it’s better than what bills would do By Ken Clark, Roberta Voss and Barbara Klein Five pieces of new legislation (introduced by Rep. Andy Tobin, R-Paulden and passed out of committee earlier this month) have taken power grabbing to a whole new level, and would set redistricting back to a time of shadowy legislative deals. We could start by asking the now worn-out phrase, “what part of Independent does the Arizona House not understand?” However, we will take the bills at face value, and simply suggest that these efforts are an insult to the voters of Arizona who wanted the Legislature OUT of the redistricting process. These bills do four major things, which should alarm the Arizona public. First, they create an expensive May 2012 special election at which Rep. Tobin hopes voters will undo the work of the Arizona Independent Redistricting Commission. The bills specifically refer a measure to the ballot which would change our state constitution so that we would adopt a set of maps created by the state legislature for 2012,, and then task a new redistrictingg

commission to adopt maps for the remainder of the decade. Second, the bills create an “alternative” map of Rep. Tobin’s liking with no public input, other than that which Mr. Tobin prefers. The Arizona Independent Redistricting Commission held meetings attended by 5,364 people, another 1,800 viewed online and more than 7,403 submitted written comments. Maps drawn behind the doors of the Speaker’s office are, by definition, inferior to maps drawn by the commission with this substantial public input. We believe this, despite also maintaining that the commission’s maps were less than perfect. Third, the bills fire the current commissioners and change the make-up of the redistricting commission in such a way that the Arizona Legislature has much more control over the outcome of the process. While it increases the number of commissioners (which we would normally approve of ), it specifically excludes the important role played by an independent chair. Under Rep. Tobin’s plan, the chair must no longer be registered as an independent. Further,, the bills cleverly allow for the

appointment of some commissioners who are “not of the same party,” which we take as a method to stack the commission with party plants. Amazingly, while the voices of independents grow in this state, these bills totally snub this group by eliminating a mandated Independent voice. Further still, these bills seize control of the commissioner’s appointment process by eliminating the vetting role of the Commission on Appellate Court appointments, which has been a firewall between the Legislature and the Independent Redistricting Commission. It also allows some elected party members to be appointed as commissioners, effectively stripping the “Independent” from the Independent Redistricting Commission. Members of the Arizona Competitive Districts Coalition attended or viewed every IRC meeting. We were not happy with the number of competitive districts and submitted contest maps, which showed a greater success in competitiveness. However, despite our disappointment we believe the process was reasonable and painfully transparent. We are disappointed that Rep. Tobin,

rather than confront useful reforms of the redistricting process, chooses to present the public with a list of unnecessary modifications, which clearly seek to take power away from the people and give it back to the Legislature. We hope that his fellow legislators think better than to follow this course.

Ken Clark is a former Democratic state representative and Roberta Voss is a former Republican state representative. They are co-chairs of the Arizona Competitive Districts Coalition. Barbara Klein is the president of the League of Women Voters of Arizona. Contact them at azcompetitivedistricts@gmail.com or (602) 456-9388.

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28 FEBRUARY 17, 2012

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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Grady Gammage, Jr. Hear the bare knuckle truth about changes we have to make to win in the global marketplace from Grady Gammage, Jr., lawyer, author, real estate developer, former elected oﬃcial and a quality of life and local economic issues expert.

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Todd Landfried Find out the latest ideas on sensible immigration reform from Todd Landfried, a leader in federal immigration reform and the voice of the business group called Arizona Employers for Immigration Reform.