Inside Tucson Business 03/02/12 by Territorial Newspapers

HOME ON THE RANGE Tanque Verde Guest Ranch has long history of hospitality PAGE 11

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • MARCH 2, 2012 • VOL. 21, NO. 40 • $1

Politicos vow to halt postal closure plan Page 5

Tort reform Lawmakers seek changes to laws governing damage suits Page 6

Real estate roundup Land Advisors hits 25 years Page 19

New economic boom possible for southside

welcome to the jungle

By Roger Yohem Inside Tucson Business

Weeds overtaking city streets and medians PAGE 3 This bus stop near Broadway and Tucson Boulevard has been overrun with unwanted vegetation.

Patrick McNamara photo

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Wishful thinking or likely reality? If four key pieces fall into place, Tucson’s southside could enjoy a massive jobs and economic windfall. Now that Pima County is buying a $6 million land buffer around Raytheon Missile Systems plant south of Tucson International Airport, the economic development spotlight has turned to three other projects: The Bridges, the Rosemont Copper mine and “re-shoring,” the return of manufacturing jobs to the U.S. Together, these ventures could create hundreds of high-paying jobs, clear out hundreds of home foreclosures, fill abandoned commercial buildings, incent landlords to raze rundown apartments, and generate millions of dollars in new tax revenue. It’s a reasonable prediction gaining traction in some real estate circles. “There’s great economic potential on the southside. With the Raytheon buffer, the mine scenario, new industries would come in and stimulate jobs,” said James Robertson, senior broker for Long Realty Commercial. Two of the initiatives are underway. The Bridges, a 350-acre master-planned development at 36th Street and Kino Parkway that includes the University of Arizona Bio Park. And around Raytheon, Pima County has agreed to purchase 380 acres and develop an aerospace and defense research park there. Any massive influx of workers would create both benefits and challenges. “Where are they going to live? Many southside apartments are more than 40 years old. The life has been sucked out of them. With all the urban lifestyle buzz, landlords will have to make hard decisions to raze and rebuild some aged apartments,” said Robertson, a multi-family property specialist. “And if Rosemont opens, they will make good money and not want to live in something obsolete. Mine jobs also help absorb foreclosures.” To University of Arizona economist Marshall Vest, it’s a very reasonable scenario. The ventures “would create the potential for quality growth on that side of town, but maybe more so for Sahuarita.” Sahuarita would compete for the new residents and companies by offering a good location, supply of new homes, and its business friendly reputation, he added. Those points underscore the need for a “coordinated, metrowide” economic development master plan, said Tucson Metro Chamber CEO Mike Varney. “No one has focused on the southside. There needs to be a blue print to drive the economic potential there for the next few decades.”

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

2 MARCH 2, 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 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

Reserve your seat by April 20th Single Attendee $65, Table of 10 $600

Tucson.bbb.org/torchawards or call 520-888-6161

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

As part of the program NAWBO is proudly presenting “NAWBO Business Woman of the Year Award”

BBB of Southern Arizona l 5151 E Broadway Blvd., Ste. 100 l Tucson l 520.888.6161

InsideTucsonBusiness.com

MARCH 2, 2012

NEWS

Tucson’s neglected roadway medians are cause for embarrasing image

Patrick McNamara photo

EPA: Rosemont mine report needs changes

Weeds have all but filled this median on Grant near Wilmot roads. City officials don’t have immediate plans, or funds, to maintain the overgrown medians throughout Tucson

By Patrick McNamara Inside Tucson Business Drive around Tucson these days and one things stands out — neglected and overgrown median islands. Along the city’s major thoroughfares, once carefully manicured and groomed shrubbery and trees appear to have been allowed to return to the Earth. And city officials have no immediate plans to renew landscaping and maintenance efforts. “I don’t have any confidence in the streets department right now,” said Tucson City Councilman Paul Cunningham.

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

Cunningham said the city has shown little capacity to address the more than 350 miles of medians in Tucson. Instead of waiting for action, he said he has been discussing the possibility of some local businesses taking the lead on weed control and landscaping of median islands, at least for the 25 miles of medians within the boundaries of his eastside Ward 2. “I think that we have private companies that would each sponsor a median for a year,” Cunningham said. “I’d rather do that and get started in the next few weeks.” He estimates the initial costs for each median, considering the state of disrepair

of many, would run about $1,000 to $1,500. After the initial investment, he estimates $500 per month would keep the medians in acceptable condition while the city tries to find money in the budget to address the issue. “The medians are an embarrassment to me,” City Manager Richard Miranda said during a City Council study session Tuesday (Feb. 28). Miranda said the city would look in the budget for maintenance funds for medians and more broadly for roadway repair, but

SEE OVERGROWN PAGE 4

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.

The U.S. Environmental Protection Agency has asked the U.S. Forest Service to revise a draft environmental impact statement (DEIS) for the proposed Rosemont Copper mine in the Santa Rita Mountains, saying the existing document that has been under public review contains “inadequate information.” Opponents of the mine seized on the fact that EPA reviewers for the Southwest region gave the original document a low rating that had only been issued four other times since 1989. But both Jim Upchurch, supervisor for the Coronado National Forest, and Rod Pace, CEO of Rosemont Copper, said they were not surprised by the EPA’s Feb. 21 letter asking for the revision. Upchurch said he had been in regular contact with the EPA, saying, “The letter is only commenting on the written part of the (draft environmental impact statement) and since that time, per discussion with the (EPA regional office), we’ve already started additional analysis that we knew we’d have to complete.” He added, “We’re confident that we won’t be making a decision without addressing these issues as best as we can,” he said. Rosemont’s Pace issued a statement saying, “This is a standard part of what a regional EPA office does. It’s part of the rigorous review process that leads to a robust final EIS required by the National Environmental Policy Act. The extensive review of the draft EIS by the EPA, as well as all of the other commenting agencies, produces the input needed by the USFS to produce the most defendable final decision documentation possible.” The Forest Service issued its DEIS last year and a 90-day public comment period on it ended in January.

Gas prices jump another 4.5% in a week, AAA says Gas prices continued their upward trajectory for a ninth week this week, with the price for a gallon of regular in Tucson averaging $3.58½ per gallon, a jump from $3.43 last week and $3.23 last month, according to AAA Arizona’s weekly survey. AAA says the rising prices are due to escalating geopolitical tensions with Iran that is pushing the price of crude oil higher.

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

6 7-8 9 9 11 13

Inside Media Briefs Finance Real Estate & Construction Biz Buzz Editorial

15 17 18 19 20 20

4 MARCH 2, 2012

The City of Tucson announced Wednesday that Old Pueblo Trackworks, a joint venture of Granite Construction Co. and a rail company named RailWorks Track Systems Inc., is the official low bidder to build the 3.9-mile rail line, stops and utilities for the Modern Streetcar. Naming the project contractor ends the selection review and starts what the city says will be “a fast-paced construction schedule” of the line that will run near the University Medical Center and the University of Arizona area through downtown to the westside of the Santa Cruz River. Old Pueblo Trackworks’ bid for its portion of the project was $55.9 million, which is below city engineers’ estimate of $62.4 million. There were a total of six bids for the project. Three pre-construction open houses are scheduled to take place next week. • Tuesday, 9:30-11:30 a.m. in the auditorium of the Arizona Historical Society, 949 E. Second St. • Wednesday, 5:30-7:30 p.m. in the cafeteria at Tucson High School, 400 N. Second Ave. • Thursday, 2-4 p.m. at Fire Central, 300 S. Fire Central Place off Granada Avenue near the Tucson Convention Center. Each two-hour open house will have the same format, information and displays with a short presentation given about 15 minutes after the doors open. Granite is a major heavy civil contractor based in California with offices in Tucson. RailWorks Track Systems is headquartered in Lakeville, Minn.

Romney wins Arizona’s 29 GOP delegates Mitt Romney handily won Tuesday’s Republican presidential preference, winning 44.3 percent of Pima County’s vote and taking all other counties, on his way to 47.3 percent of the vote statewide. He out-distanced former U.S. Senator from Pennsylvania Rick Santorium, who got 26.6 percent of the statewide vote; former Congressman from Georgia Newt Gingrich, who got 16.2 percent, Congressman Ron Paul, who got 8.4 percent and the other 19 ballots who garnered a combined 1.5 percent of the vote. Romney was the only of the front-running candidates who actively campaigned in Arizona where the winner gets all 29 delegate votes at the party’s nominating convention. Also on Tuesday, Romney narrowly won the primary in Michigan, with 41.1 percent of the vote to runner-up Santorum, who got 37.9 percent.

NEWS OVERGROWN CONTINUED FROM PAGE 3 suggested that any amounts found would likely not cover the anticipated expenses. “Overall, I think we have to look at: Do we have to bond?” Miranda said, suggesting that the city would have to borrow money to bring the roads and medians back into acceptable condition. Median island landscaping and maintenance falls under the transportation department. Its adopted $327.4 million budget for the current fiscal year is $59 million more than the previous year. About $50 million per year goes toward Sun Tran bus services and another $13.5 to Sun Van transit services. The operations portion of the transportation department budget, that which pays for salaries, supplies and other dayto-day expenses, was $104.4 million or $2 million more than the previous year. In fact, the budget for the city’s transportation department has nearly tripled since 2003, when the city budgeted $117 million for the department. Much of the transportation budget comes from the Highway User Revenue Fund (HURF). The state collects the money from gas taxes, motor vehicle registration fees and other sources and doles it out proportionally to local governments. Those funds have decreased and been put toward different state functions to try to balance the state’s budget deficits in recent years. At the same time, the employee ranks of the city’s transportation department have shrunk from more than 400 as recently as 2008 to 275 in the current budget year. In spite of these declines, the budget for the streets and traffic maintenance division, which handles landscaping and median islands, has remained mostly steady the past several years. In fiscal 2011, the division had a budget of $20.7 million and in the current fiscal year it has an estimated $21.2 million. Its overall budget in 2003 was $22 million. HURF supplies the bulk of the budget. This fiscal year it is budgeted to received $21.2 million, up from $19.7 million in 2011 fiscal year. In fiscal 2008, the division received $25.8 million in HURF money. The continual decline in roadway conditions, including the weed and refuse filled medians, has raised concerns about the image of Tucson. “This is a time of year when we have a lot of visitors and we’re sending a message — and it’s not the message we want to send,” said Tucson Metro Chamber President and CEO Mike Varney. In addition to the annual influx of winter visitors, special events including the gem and mineral shows, the Tucson Rodeo, Major League Soccer training and the Accenture Match Play Championship attract thousands of tourists. “I see street maintenance, roads and medians, as an economic development

Patrick McNamara photo

Modern Streetcar work set to begin this month

INSIDE TUCSON BUSINESS

Broken tree branches lie in the median island on Camino Seco. Budget cuts have forced the city to abandon landscaping efforts along city roadways.

issue,” Tucson Mayor Jonathan Rothschild said. Rothschild said the highly visible state of disrepair of medians and the deteriorating roads conveys a poor image of Tucson to visitors. He also said the city may need to look toward bonds as a way to fund the major roadway repairs needed because an increase in sales taxes probably wouldn’t be successful. The city has not passed a bond issue since 2000. Some work has been done on medians along the “gateways” to the city, those that lead from Tucson International Airport, the interstates and other areas where would likely travel.

That’s been accomplished through partnerships with the private sector and by using some of the city’s minimal budget for landscaping contractors, which Rothschild said totals just $53,000. The city also has an agreement with the Arizona Department of Corrections to have prison laborers do some median work. “There’s no question that our roads and medians need serious attention,” Varney said. “This is a basic function of government.”

Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 2954259.

InsideTucsonBusiness.com

MARCH 2, 2012

NEWS

This Week’s

Opposition grows over planned closure of mail sorting facility

Good News Sun shines on Tucson

Patrick McNamara photo

By Patrick McNamara Inside Tucson Business Lawmakers have lined up in opposition to the United States Postal Service’s announcement that it intends to move ahead with the closure of hundreds of facilities, including a sorting and processing facility in Tucson, to stave off increasing budget shortfalls. “The announcement of the pending closure is devastating news in many ways,” said U.S. Rep. Raúl Grijalva, D-Ariz., at a Feb. 24 news conference. The facility, at 1501 S. Cherrybell Stravenue, is in Grijalva’s district. The Congressman said the closure would leave a $14 million void in the local economy and cast many out of work. He and other members of Congress have spoken out against the closures and consolidations the postal service has proposed. An agreement between the Postal Service and Congress put a moratorium on any closures until May 15 while efforts are made to try to come up with alternative solutions. The Postal Service has said 147 workers at the mail processing center would be affected by the closure but that it would work to replace employees at other facilities. “All bargaining employee reassignments will be made in accordance with the respective collective bargaining agreements. The Postal Service has a proven track record of working with affected employees to find opportunities at other locations. As a result, very few employees have lost their employment with the Postal Service,” USPS spokesman Peter Hass said in an email. The service has shed more than 140,000 jobs in the last four years, most through attrition. The Postal Service confirmed the planned closure after months of discussions, including a public meeting in December with local elected leaders, postal officials and community members. If the Postal Service closes the Tucson processing function at the facility, all outbound mail from Southern Arizona would be trucked to a facility in Phoenix for processing then delivered to its final destination – even mail intended for Tucson addresses. The site would still operate as an administrative office and retail and business service center. Postal service officials have said the closure would result in one additional day’s delay in delivering local mail. Deliveries further afield would remain the same, barring any servicestandard changes that also could occur. The closure announcement also drew criticism from the Tucson Metro Chamber saying it “is not smart business” and that the Postal Service owes Tucsonans some answers. “The numbers just don’t add up in a sensible way,” the chamber argued.

From left, U.S. Rep. Raul Grijalva, Tucson Mayor Jonathan Rothschild, and former Tucson Postmaster Arnold Elias want to save 147 postal jobs in Tucson.

Besides the delays in delivery and the loss of jobs, the closure will mean postal rate increases of almost 20 percent for the 23,000 businesses in the Tucson region and that mailings for nonprofits will increase by up to 48 percent, taking money away from their needed services. The chamber said the Postal Service’s determination of which facilities to close is based on a formula they derived but it’s not known what factors or values were used in coming to their conclusions. “It is time the (Postal Service) be transparent and up front about the criteria and formula used to determine the closure of Cherrybell,” the chamber said, adding, “Closing Cherrybell, the 15th largest processing center, is a decision that has been made despite considerable economic consequences to the 53rd largest metropolitan area in the nation.” Among leaders joining Grijalva to decry the closure were Tucson Mayor Jonathan Rothschild, Pima County Recorder F. Ann Rodriguez, Tucson City Councilman Richard Fimbres and former Tucson Postmaster Arnold Elias. The statements made by these leaders “have fallen on deaf ears and their requests for transparency in this decision-making process has been denied,” said the chamber. Grijalva was critical of the announcement to move ahead with closure despite the moratorium agreement with Congress. “This process has been very disingenuous from the beginning,” Grijalva said. “One can’t help but think that there was a predetermined decision.” He said he wants decisions on postal facility closures to undergo greater vetting, taking into account population growth and projected growth rates. Arizona has grown rapidly for decades and following the 2010 Census picked up an additional seat in the U.S. House of Representatives. Much the postal service’s current financial troubles have been blamed on Congressional

action. In 2005, Congress overwhelmingly passed the Postal Accountability and Enhancement Act, which contained among its provisions a requirement for the Postal Service to pre-fund its employee pension system for decades into the future. The law requires the service to contribute $5 billion to $7 billion annually to the fund, effectively paying into pensions for employees the USPS has not yet hired. Grijalva was among the 95 percent of the House of Representatives to vote in favor of the bill. He did not vote in a 2009 bill that addressed the pension issue. The bill passed the House but did not receive a vote in the Senate. A similar Senate bill to address the issue never progressed beyond committee hearings. If no changes to the postal service are made, the Postal Service estimates it would run an $18 billion deficit by 2015. A number of new bills have been proposed in Congress to address the continued budget troubles. In the meantime, the service has proposed cutting $20 billion from its operating expenses through a combination of closures, consolidations, compensations changes and eliminating Saturday deliveries. Those changes however, could prove difficult as members of Congress in nearly every region of the country have come out in opposition to closures in their districts. Grijalva said the Congress has a responsibility to fix the issues, at least those it has purview over, to minimize the negative impact on communities. “I don’t think we deserve second-class status,” Grijalva said.

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

The sun has been shining on Tucson — literally — and it bodes well for the future of a couple of major sporting events. With more than 10,000 fans expected at Saturday’s Major League Soccer Desert Diamond Cup at Kino Stadium, it’s all but a certainty it will return next year and be even bigger. It also helps that star David Beckham of the Los Angeles Galaxy has gone public about how much he likes the experience in Tucson. And on the golf front, the Accenture Match Play Championship will be back for two more years and, if Accenture has its way it will return to the Ritz-Carlton course at Dove Mountain. C’mon, who didn’t get a call last week from some cold relative drooling over what they saw on TV? This was all good. What other city in the country could lay claim to having two of the biggest names in sports, Beckham and Tiger Woods, in the same town playing their sport on the same day?

The Tucson

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

Pinching tourism dollars Regardless of whether you think the Metropolitan Tucson Convention and Visitors Bureau is doing a good job or bad job, Rick Vaughan, retiring senior vice president of sales and marketing, says the fact of the matter is the amount of money put toward marketing Tucson tourism is down 30 percent this year from what it was in 2010. He compares that to a 17 percent drop in Albuquerque over the same three years, a 33 percent increase in Scottsdale, a 78 percent increase in Palm Springs and a 15 percent increase in San Diego. In fact, among the five comparable destinations, the MTCVB’s tourism marketing budget of $6 million for 2012 is the smallest, which for the other markets ranges from $6.3 million for Albuquerque to $25.7 million for San Diego. In terms of revenue per available room, the fact that Tucson grew by 0.9 percent looks almost miraculous. Albuquerque’s RevPAR, as it’s called in the industry, grew by just 0.7 percent, San Diego was up 7 percent, Scottsdale was up 9 percent and Palm Springs was up 12 percent.

New MTCVB chief Look for the Metropolitan Tucson Convention and Visitors Bureau to announce its new CEO probably this afternoon, assuming the final negotiations don’t hit a snag. The new person will replace Jonathan Walker who announced in November that he would retire as of the end of this month.

6 MARCH 2, 2012

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

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

BANKRUPTCIES Chapter 7 - Liquidation Pure Power Sales LLC, 4962 E. Rousay Drive, San Tan Valley. Principal: Ricky Gelnette, owner. Assets: $0. Liabilities: $104,855.00. Largest creditor: Chase, Wilmington, Del., $30,938.00 and Elan Financial Service, St. Louis, $28,221.00. Case No. 12-03109 ﬁled Feb. 22. Law ﬁrm: James J. Gentile, Chandler

FORECLOSURE NOTICES DDR MDT MV Tucson LLC (and affiliated trustors Anaheim Hills, Antioch, Burbank, Carson City, Chandler, Chino, Clovis, Deer Valley, El Cajon, Fairfield, Folsom, Foothill Ranch, Garden Grove, Ingram, Las Vegas, Lompoc, Madera, Nellis Crossing, North Fullerton, Palmdale, Porterville, Redding, Reno, Santa Maria, Santa Rosa, Silver Creek, Slatten Ranch, Sonora, South San Diego, Superstition Springs, Tulare, Ukiah, West Covina and West Las Vegas) 3660 S. 16th Ave. 85713 Tax parcel: 119-18-0870 7 (Pima County parcel) Original Principal: $265,687,500.00 Beneficiary: 2005-C4 DMM Portfolio Properties, c/o Capital Asset Management LLC, Baltimore, Md. Auction time and date: 12:30 p.m., May 16, 2012 Trustee: Michelle Ghidotti, Assured Lender Services, 2552 Walnut Ave., Suite 110, Tustin, Calif. Hillcrest LLC 940 E. Adelaide Drive 85705 Tax parcel: 113-08-241E Original Principal: $95,000.00 Beneficiary: Washington Federal, formerly Washington Federal Savings, Phoenix Auction time and date: 11:30 a.m., May 16, 2012 Trustee: Larry O. Folks, Folks & O’Connor, 1850 N. Central Ave., Suite 1140, Phoenix United Vending Corporation 8420 S. Nogales Highway 85706 Tax parcel: 140-50-012 Original Principal: $585,000.00 Beneficiary: Bayview Loan Servicing, Coral Gables, Fla. Auction time and date: 11:30 a.m., May 16, 2012 Trustee: Security Title Agency Inc., 3636 N. Central Ave., Phoenix

LIENS Federal tax liens Gyms Fitness Centers and DWC Inc., 3346 S. Sixth Ave. Amount owed: $55,113.96. Barefoot Days Preschool & Childcare, 8323 E. 22nd St. Amount owed: $15,986.95. Mayﬂower Restaurant LLC and Harry Fung, 6462 N. Oracle Road. Amount owed: $11,039.38. Bjorner Ventures LLC and Jennifer Cowgill, 2 E. Congress St., Suite 900. Amount owed: $5,172.26. Fuerza Fuels LLC and James Peter Lombard, 511 S. Russell Ave., Apt. 1. Amount owed: $2,564.44. WPNT-Tucson LLC, 8838 E. Broadway. Amount owed: $81,408.30. 4-Rios Construction, 5609 E. 24th St. Amount owed: $34,333.08. Jarco Automotive Group LLC and David H. Polsky, PO Box 1628, Green Valley 85622. Amount owed: $12,610.44. Irma D. Gonzalez LLC, 2732 W. Monte Vista Place. Amount owed: $5,884.67.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Southern Arizona Air LLC, 702 E. Fair St. Amount owed: $20,209.59. Steak in the Neighborhood and My Brothers Bar Congress LLC, 125 E. Congress St. Amount owed: $2,442.34.

INSIDE TUCSON BUSINESS

NEWS Lawmakers talk tort reform but face an uphill battle By Hank Stephenson Inside Tucson Business PHOENIX — Hoping to drive down the cost of insurance premiums and create a more business friendly environment, state lawmakers are taking on reforms in the civil justice system, or tort reform. Republican lawmakers have introduced a variety of measures dealing with tort reform this year, but no one has made it more of a priority than Rep. Ted Vogt, R-Tucson, an attorney. While Vogt admits the opposition to proposed changes in civil justice law is strong by those with vested interests, including lawyers like himself, he said the changes are necessary for the good of the state. “I’m an attorney myself and oftentimes I’m working on these things and, hey, am I changing the system that right now I benefit under? Yes, I am, but I think it’s the right thing to do,” he said. “You gotta be willing to stand up and do what’s right, even when it’s not in your personal best interest.” One bill (HB 2547) allows a defendant in any personal injury, wrongful death or destruction of property claim, to introduce evidence of any money or benefit that is or will be paid to the plaintiff or on the plaintiff ’s behalf. The bill received preliminary approval by a House committee and now awaits a vote by the full House. Vogt calls it a transparency bill, saying the jury and both parties involved have a right to know exactly how much of the tab for damages is being picked up by an insurance company so that they can make a more honest assessment of what compen-

State Rep. Ted Vogt

sation the defendant owes. As the law is now, juries don’t know that oftentimes insurance is paying the plaintiff back, he said, and the defendant will end up paying the plaintiff when they have already been compensated partially or in full. “When I set out to take on tort reform, one of the things I wanted is to introduce efficiencies in the tort system but not damage or adversely affect plaintiff,” Vogt assured the House Judiciary Committee earlier this month. “I believe plaintiffs need to be properly compensated when they are injured and it’s the fault of another. This is legislation that does that.” But Richard Langerman, who represents

the Arizona Trial Lawyers Association, said the bill will be harmful to plaintiffs who have insurance, and the bill isn’t all that transparent. He said the bill would benefit wrongdoers who caused the accident, and it increases complexity and cost of litigation. The bill provides only partial transparency, he said, because it doesn’t require defendants to show if they have insurance that could help pay their damages. “To the extent that this provides a benefit for wrongdoers at the expense of victims, it’s a bad idea,” he said. “To the extent that it increases the cost of litigation, bad idea. To the extent that it provides partial transparency but not full, it’s a bad idea.” Rep. David Smith, R-Carefree, also worried that the transparency offered in the bill is a one-way street, saying it sounds fair that if the plaintiff has to show insurance information, the defense should have to show also. Michael Low, who represents Allstate American Family and supports the measure, called the bill one of the more significant tort reforms the state has considered in the last 20 years. Low has seen many mach trials, and said he is amazed by how often the jury tries and fails to figure out whether there is other compensation or an insurance policy in play. This bill will make it easier for jurors to reach their opinion and make it easier to settle cases, he said. “We’re basically putting out information to the jury that the jury really should have,” he said.

Chamber’s first Outlooks forum spotlights Tucson’s concerns Inside Tucson Business With the Tucson region at the crossroads of economic and political change, the Tucson Metro Chamber is launching what it is planning as an annual event featuring powerhouse speakers with expertise in crucial areas of concern. At the top of the list in this election year, is Dick Morris, Washington political insider and analyst. “This forum is all about business intelligence. What political, economic and other issues are driving business in our community?” explained Tucson Metro Chamber CEO Mike Varney. “Based on what the business community is concerned about,

we’ve gotten very appropriate speakers.” Joining Morris, a political strategist for former President Bill Clinton, is Ron Clark, an educational entrepreneur; Grady Gammage Jr., an economic specialist; and Todd Landfried, an immigration policy analyst. The chamber intentionally went “out of market” for speakers who have the knowledge to dovetail their overall expertise to the local market, Varney said. Morris will update attendees on the race for the White House. He is a commentator and analyst on the Fox News Channel and has been called “the most influential private citizen in America” by Time magazine. Clark is known as “America’s Educator” and is a prodigy of the Disney organization.

His unique approach to education that turned around an inner city school in New York City was captured in the film, “The Ron Clark Story.” Gammage will delve into Southern Arizona’s “real” economic opportunities. He is recognized nationally for his work in land use, zoning, and real estate law. Landfried will bring his perspective on immigration reform. The event, called Outlooks, will be from 7 a.m. to 1 p.m., March 15 at Casino del Sol Resort & Conference Center, 5655 W. Valencia Road. The cost is $49 for chamber members; $75 for non-members. Registration online at www.TucsonChamber.org .

InsideTucsonBusiness.com

MARCH 2, 2012

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8 MARCH 2, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

MARCH 2, 2012

ARTS & ENTERTAINMENT ARTS & CULTURE

MEALS & ENTERTAINMENT

Mingle with culinary authors Enjoy dance and dessert to Slow Food Tucson reception to benefit Ballet Tucson The Tucson Festival of Books is next weekend and just over a dozen culinary authors are expected to participate in events surrounding the festival on the main mall on the University of Arizona campus. Slow Food Tucson has organized a reception from 5-6:30 p.m. March 10 at Lodge on the Desert, 306 N. Alvernon Way. Participating authors include Nancy Silverton, owner of several Los Angeles restaurants and founder of La Brea Bakery; Alice Medrich, called the â&#x20AC;&#x153;First Lady of Chocolate,â&#x20AC;? and author of â&#x20AC;&#x153;Chewy Gooey Crispy Crunchy Melt-In-YourMouth Cookies;â&#x20AC;? and Evan Goldstein, master sommelier and author of â&#x20AC;&#x153;Perfect Pairings.â&#x20AC;? Libations at the reception include wine from taps, local brews from both Tucson and Bisbee and three specialty cocktails: ginger-whisky breeze, tamarindo pod sangria and Lodge on the Desertâ&#x20AC;&#x2122;s classic margarita. Chef Ryan Clark will also prepare some hors dâ&#x20AC;&#x2122;ouevres. Tickets are $35 per person. (A dinner following the reception is already sold out.) â&#x20AC;˘ Slow Food Tucson â&#x20AC;&#x201D; http:// slowfoodtucson.org/Events.asp

Polish country on Broadway If you and your taste buds are looking to break out from one of the standard cuisines â&#x20AC;&#x201D; Chinese, Italian, Mexican, etc, â&#x20AC;&#x201D; try the Polish Cottage in mid-town. The restaurant opened in September and is relatively small, but nicely decorated with a warm, country-cottage feel. You might want to overlook the dining room chairs that look to be straight out of the 1970s. The menu features Polish specialties including pierogi, stuffed cabbage, hunterâ&#x20AC;&#x2122;s stew and

Polish sausage. For me, the pierogi was the highlight of a recent visit. There are four varieties of the house-made pierogi, potatoes and cheese, sweet farmers cheese, beef, and sauerkraut MICHAEL LURIA and mushrooms. Keeping true to their roots, the Polish Cottage also offers a nice list of Polish beers, vodka and liqueurs. â&#x20AC;˘ The Polish Cottage, 4520 E. Broadway â&#x20AC;&#x201D; http://polishcottageaz.com/ index.html â&#x20AC;&#x201D; (520) 891-1244

Another Paradise Bakery Paradise Bakery & CafĂŠ is continuing to expand in Tucson. Late this month itâ&#x20AC;&#x2122;s due to open northwest of the corner of Broadway and Wilmot Road in the space that last house Austinâ&#x20AC;&#x2122;s Old Fashioned Ice Cream. As Paradise Bakery the location will feature indoor seating for 90 and a newly constructed patio for 40. The chain, which was acquired by Panera Bread a little over four years ago, has two other Tucson locations, at 845 N. Park Ave. in Main Gate Square, and 4362 N. Oracle Road. â&#x20AC;˘ Paradise Bakery & CafĂŠ, 6129 E. Broadway â&#x20AC;&#x201D; www.paradisebakery.com .

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

Ballet Tucson puts on its 15th annual Dance & Dessert event March 9-11 at the Stevie Eller Dance Theater, 1713 E. University Blvd. on the University of Arizona campus. The event pairs dance along with delicious dessert offerings from Tucson restaurants and is Ballet Tucsonâ&#x20AC;&#x2122;s main fundraiser of the season. Tickets are $27 general admission or $20 each for groups of 10 or more. Performances take place at 7:30 p.m. March 9, at 2 and 7:30 p.m. March 10 and at 1 and 5 p.m. March 11. Buy tickets online at www. BalletTucson.org or call (520) 903-1445.

Art A new show of artwork by Dirk Arnold titled â&#x20AC;&#x153;Endangered Architectureâ&#x20AC;? has opened at the Temple Gallery in the Temple of Music and Art, 330 S. Scott Ave. The show highlights Arnoldâ&#x20AC;&#x2122;s unique and detailed shadow box creations, which portray some of Tucsonâ&#x20AC;&#x2122;s architectural gems. Sadly, many of Arnoldâ&#x20AC;&#x2122;s subjects have been demolished, so this exhibit is a welcome memorial to those that are gone and a somber reminder to preserve what we can. The Temple Gallery, which is managed by Etherton Gallery, is open during regular business and also prior to and during intermission of Arizona Theatre Company performances so keep that in mind if youâ&#x20AC;&#x2122;re attending a performance of â&#x20AC;&#x153;The Great Gatsby.â&#x20AC;?

Opera Arizona Opera is presenting the monumental opera â&#x20AC;&#x153;Aidaâ&#x20AC;? this weekend at the Music Hall in the Tucson Convention Center complex, 260 S. Church HERB STRATFORD Ave. Set in Egypt, the opera features star-crossed lovers, an amazing cast with eye-popping costumes and giant sets. It has been more than a decade since â&#x20AC;&#x153;Aidaâ&#x20AC;? has been performed in Tucson. Performances take place at 7:30 p.m. Saturday and 2 p.m. Sunday.

Music Also this weekend the Tucson Symphony presents performances of Wolfgang Amadeus Mozartâ&#x20AC;&#x2122;s Clarinet concerto and Ludwig van Beethovenâ&#x20AC;&#x2122;s Symphony No. 1 as part of its Masterworks series. Clarinetist Laura Stoutenborough is the guest artist for the concerts, which take place at 8 tonight (March 2) and 2 p.m. Sunday in the auditorium at Catalina Foothills High School, 4300 E. Sunrise Drive.

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

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10 MARCH 2, 2012

INSIDE TUCSON BUSINESS

SALES

SALES JUDO

More ‘ARM’ing your revenue producers by getting the right job fit In my continuing efforts to help you to attract, retain and motivate — ARM — your revenue producers, this week I’d like to show you another important tool beside the classic DISC profiles we talked about in the Feb. 17 column that can help you decide how best to place, compensate and reward your producers. This will help you if you are a manager but will help producers themselves determine what types of revenue producing jobs they are most likely to prefer and succeed in. It’s called PIAV: Personal Interests, Attitudes and Values. You can determine your two highest attitudes — theoretical, utilitarian, aesthetic, individualistic, social or traditional — by taking a free full version of PIAV in Chapters 8 through 10 of Bill J. Bonnsetter’s great little book “If I Knew Then – How to Take Control of Your Career” — online at www.ttidisc.com/ebooks/IIKT_ebook.pdf — or in the shortened version I’m presenting on this page. If you are a strong “theoretical,” your focus is usually on education, learning and truth. If you are a strong “utilitarian,” your focus is on practicality, efficiency or economics. If you are a strong “aesthetic,” it’s on beauty, harmony and balance. If you are a strong “individualistic” it’s on controlling your own destiny or the destinies of others. ”Social” is about putting yourself before others. And “traditional,” focusing on a system for living. These definitions are highly simplified explanations of PIAV. So, which attributes are most frequently associated with successful producers? In this case a blend of hunters and farmers? A study of samples of successful sales people in the United States, Germany and Holland conducted by Bonnstetter and Sheelen a few years ago revealed that in the U.S. and Germany, roughly 70 percent of those classified as top producers reported they had a strong utilitarian attitude. In Holland, 50 percent had a strong utilitarian attitude. The next highest frequency was a theoretical attitude. The four other attitudes registered percentages of 8

percent or less. The bottom line: Top producers usually have a utilitarian attitude so if you lack this trait, you may not succeed as a producer. Looking at SAM WILLIAMS this same study using DISC and Bonnsetter’s “Success Insight” system with its eight styles is more nuance than PIAV and shows a spread of attributes among hunters, farmers, specialists and non-selling professionals such as architects, attorneys, accountants, engineers and doctors. For example, many successful nonselling professionals have profiles that are spread across three styles: analyzer, implementer and conductor. Many successful hunters are spread across two styles: conductors and persuaders. Successful farmers are often promoters and relaters. Successful specialists can be supporters, coordinators and analyzers. DISC implies there is greater room for success as a producer provided you operate in the right role. But no matter what style you have or what roles the job requires, it’s still important for you to have a “utilitarian” attitude. In my next column on March 16, I’ll cover what types of monetary and non-monetary compensation work best with each type of producer, the pros and cons of 100 percent commissions and caps or limitations on commissions, and why nonprofits view the practice of paying commissions as unethical.

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.

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

P: G U N G I S FREE TO

PIAV QUESTIONNAIRE Read each statement and then in each box place a 5 for strongly agree, 4 for agree, 3 for neutral, 2 for disagree or a 1 for strongly disagree. Add the ﬁve boxes for a total under each attitude. The two attitudes with the highest scores between 18 and 25 are your two strongest attitudes. If you have more than two strong attitudes or none at all, then I recommend you take the full version of the test online.

Theoretical

______ I enjoy discovering, understanding & ordering knowledge ______ I am good at integrating the past and present ______ Many see me as an intellectual ______ Every time I am near a bookstore, I want to stop in ______ I want to know just for the sake of knowing ______ Total

Utilitarian

______ I evaluate things based on their utility and economic return ______ I desire an adequate return on any investment I make ______ Wealth provides the needed security for my family and myself ______ Money and possessions are scorecards of my success ______ I am very future oriented ______ Total

Aesthetic

______ I desire and seek the ﬁner things in life ______ I am very aware of my inner feelings ______ Looking and feeling good is one of my goals ______ I invest time and money in self-help material ______ I am very creative ______ Total

Social

______ Eliminating hate and conﬂict is one of my passions ______ I have a passion to improve the whole of society ______ I am empathetic to those who are hurting ______ I believe people should support charities ______ I tend to avoid confrontation if it may hurt the relationship ______ Total

Traditional

______ Rules and regulations should be adhered to ______ I have a system for living and want others to follow my system ______ I place a high value on living in tune with a higher purpose ______ I have found a ‘rule book’ for life and follow it ______ I am more helpful to others who share my beliefs ______ Total

Individualistic

______ I like people who are determined and competitive ______ It is important for me to be in control of my own destiny ______ I believe I can inﬂuence the destiny of others ______ I want to be recognized for my accomplishments ______ I believe, “If at ﬁrst you don’t succeed, try again.” ______ Total

Totals of 18-25 are strong attitudes, 12-17 are average and 11 and under are weak.

! B A T R E LETT S W E N THE K C I L C AND

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PROTUCSON.PROBUSINESS.

InsideTucsonBusiness.com

MARCH 2, 2012

PROFILE

Family-owned Tanque Verde Ranch is older than Arizona BIZ FACTS

By Victoria Pelham Cronkite News Service Joe Valdez has been with Tanque Verde Ranch since 1976, doing everything from training horses to leather saddle repair to helping tourists experience the style of living he grew up with in a family of southern Arizona ranchers. â&#x20AC;&#x153;(Cowboys) havenâ&#x20AC;&#x2122;t completely vanished yet. Theyâ&#x20AC;&#x2122;re still very much alive,â&#x20AC;? he said. Tanque Verde, which opened in 1868, is a family-owned business that has been in operation since before Arizona, which celebrated its centennial last month, was a state. Other ranches have come and gone around the property over the years, and it has switched ownership, adapted to different times and found ways to survive in a changing industry. â&#x20AC;&#x153;If your customers are not happy theyâ&#x20AC;&#x2122;re not going to come back again, so our main objective is to try to find activities, interests, patterns, that will stimulate, encourage and excite our guests to come back again,â&#x20AC;? said Bob Cote, the ranchâ&#x20AC;&#x2122;s current owner. Cote attributes much of Tanque Verdeâ&#x20AC;&#x2122;s longevity to its protected location in the eastern reaches of the metropolitan area. Bordering Saguaro National Park and the Coronado National Forest, Tanque Verde isnâ&#x20AC;&#x2122;t as vulnerable to development. Cote has overseen the property for about 40 years since taking over the reins from his father. In that time, the ranch has marketed to a different clientele and diversified its services, aiming to provide a resort atmosphere to its guests. Guests today often come from Europe for a Western experience, part of an internationally geared business strategy Bob adopted in the 1970s after working, studying and traveling through Paris, New Zealand and Japan. This has filled a dip in visitors in the guest ranchâ&#x20AC;&#x2122;s slower summer season, he said. Tanque Verde has also separated the original cattle operation from the tourist operation, essentially splitting the business into two segments. Riders today are less experienced than they were 40 years ago, and liability issues make it so guests canâ&#x20AC;&#x2122;t round up cattle or interact with them like they used to, Cote said. Richard Nosky, a lecturer in the management department at Arizona State Universityâ&#x20AC;&#x2122;s W.P. Carey School of Business, said a key to business longevity is adapting. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a dynamic process,â&#x20AC;? he said. â&#x20AC;&#x153;As soon as products and services stay static, itâ&#x20AC;&#x2122;s a sure sign of you going out of business and somebody else meeting that need if youâ&#x20AC;&#x2122;re not aware of that.â&#x20AC;? Originally purchased and settled as a cattle ranch by Rafael and Emilio Carillo, the land was sold to Jim Converse in the early 1900s. It was sold in 1957 to the Cote family, which has owned it ever since. Tanque Verde became a guest ranch under Converse, who saw the move as an opportunity to get those interested in the cowboy life to work for him, Cote said. Visi-

TANQUE VERDE RANCH 14301 E. Speedway www.tanqueverderanch.com (520) 296-6275 | 1-800-234-3833

Operates on 60,000 acres, including national forest land

Bob Cote, owner of the Tanque Verde Ranch, pets one of the horses in the corral. Cote has operated the ranch since 1969.

tors to the ranch wanted to be part of what was being shown in the Western movies of the day by characters like the Lone Ranger. These days, the ranch has added hiking, tennis, mountain biking and nature programs, as well as a health spa, for its guests. It has also brought in televisions and wireless Internet. â&#x20AC;&#x153;In the service industry you want to make sure your customers are happy and that they feel theyâ&#x20AC;&#x2122;re getting their value for the

money theyâ&#x20AC;&#x2122;ve invested,â&#x20AC;? Cote said, adding that guests now look for a more pampered experience than a strictly cowboy lifestyle. Some of the older buildings have been torn down, replaced by newer complexes, and others have been renovated. The original ranch house still stands. Not all Southern Arizona guest ranches have followed the same path of growth as Tanque Verde. The numbers of guest ranches

have dropped since the 1950s from around 55 to seven or eight today, Cote said, as owners of small family operations had children who left the ranching industry. The city grew and ranchers were forced to sell off their land. But Cote is positive about the next chapter in Tanque Verdeâ&#x20AC;&#x2122;s story. â&#x20AC;&#x153;As long as we maintain our integrity to our guest satisfaction, I think we will be here for a long time,â&#x20AC;? he said.

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12 MARCH 2, 2012

INSIDE TUCSON BUSINESS

Win Rock ‘N Prizes!

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InsideTucsonBusiness.com

MARCH 2, 2012

PEOPLE IN ACTION NEW HIRES Hammel, Beal & Lauer PC has hired Christine Tyler as a certified public accountant. She has five years experience in public accounting with an emphasis on audits, reviews and compilations. Her experience includes construction contractors, manufacturers, health care and nonprofit organizations. Tyler has a bachelor of arts degree in accounting from the University of Arizona Andrea Johnson has joined Bank of Tucson as senior vice president of retail

banking. Johnson previously was district manager at Wells Fargo. She has 25 years of banking experience and is a member of the El Rio Foundation Board. United Way of Tucson and Southern Arizona has hired Chris DeGraff as senior vice president of resource development and chief development officer. DeGraff has raised $31 million in his 25-year career in nonprofit management and fundraising. He previously worked for Grace Lutheran Church, Hennepin County Library, Minnesota Zoo Foundation,

Holtzer earned a B.A. from the University of Minnesota, a M.A. from Mankato State University and a Ph.D. from the University of Illinois at Chicago. Rua received his B.S. in microbiology from the University of Arizona.

Indiana 4-H Foundation and Up With People. HTG Molecular, a privately-held, Tucson-based provider of moleculartechnology solutions, has hired three industry-renown professionals to its executive team: Shaun McMeans, vice president of finance, administration and chief financial officer; Timothy J. Holtzer, Ph.D., M.A., vice president of clinical diagnostic development; and Sam Rua, vice president of regulatory affairs and quality systems. McMeans has a B.S. in accounting from Penn State University.

ANDREA JOHNSON

CHRIS DEGRAFF

{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.

Wade Dunagan has been hired by Action Imaging Group in Tucson and the Imagine Technology Group in Phoenix/ Scottsdale as director of operations. The companies provide office equipment and technical support to businesses. Dunagan attended the University of Arizona and has lived in

Tucson for 25 years. He most recently was executive director of the World Golf Championships-Accenture Match Play Championship from 2009 to 2011. Tabitha Cooper also has joined the Action Imaging Group as the director of finance. Cooper holds an MBA in management and accounting. In addition to accounting, teaching and many typical executive level functions, she specializes in business management and strategic planning.

Pathways Financial Partners has announced the hire of Michael Crissey as senior wealth advisor. Crissey has 30 years experience in the competitive field of finance. Prior to coming to Pathways, Crissey worked for a major global investing firm and was responsible for marketing to retirement plans with at least $500 million in assets.

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14 MARCH 2, 2012

INSIDE TUCSON BUSINESS

REMEMBERING TUCSON

Robert Hirsh retires after legendary 48-year career in law Things have changed since the Arizona Legislature revised murder defense laws in 1993 that eliminate the possibility of being found “not guilty by reason of insanity.” Robert J. Hirsh’s talents as a criminal defense attorney had succeeded in getting a series of his clients acquitted in the 1980s on the grounds they were “temporarily insane.” Now, under Arizona, a person can be found “guilty, but insane” under which they must serve their time in a mental institution. If the person recovers enough to leave the institution, he or she must fill out the remainder of their sentence in prison. Hirsh’s role in changing the Arizona law started in 1981 when he represented Scottsdale resident Steven Steinberg, who was acquitted of murder by a jury after stabbing his wife 26 times. At the time, the media referred to it as the “sleepwalking case.” The defense argument was that Steinberg’s wife, Elana, had driven him mad by her nagging and spending habits. Through his legendary career, Hirsh defended other clients, including reputed Mafia figures Joseph “Joe Bananas” Bonanno, who lived near the Arizona Inn, and Pete Licavoli, who lived on the Grace Ranch, and Charley “Bats” Battaglia. He also represented Tucson nude nightclub bars arguing they had a legal right to operate. Hirlsh says he was surprised by the anger that resulted from his winning acquittals, insisting that he was only doing his job. Nevertheless, he says it impacted his reputation. And the city passed an ordinance in the early 1970s outlawing nudity in places where alcohol is served. In another example of how times have changed, Hirsh notes that X-rated shows and movies can be found in more places than ever before, including hotel rooms. One of Hirsh’s most memorable cases involved a $3.3 million robbery of First National Bank of Arizona at Broadway and Swan Road on April 22, 1981. At the time it was considered the largest bank robbery in the country. The bank used the location as a depository for cash receipts from nearly all of its branches in the Tucson area. Authorities said four gunmen wearing Halloween masks and stocking hoods filled several bags with cash and then fled in a van, leaving hostages they had held unharmed. David Grandstaff and his gang referred to the robbery as “We yanked Hank’s bank,” a reference to the bank’s advertising campaign at the time. The robbery was the subject of a 1993 book, “The Gang They Couldn’t Catch: The Story of America’s Greatest ModernDay Bank Robbers — And How They Got Away With It” written by former Arizona Daily Star reporter Debra Weyermann. Hirsh came to Tucson in 1945 as a youngster when his parents, Dave and Rose

MARY L. PEACHIN

Hirsh decided to leave Pennsylvania after being told the dry desert climate would be helpful for Rose’s arthritis. Young Hirsh grew up attending Sam Hughes Elemen-

Bob Hirsh on top of Picacho Peak.

Bob with his family in Tucson.

tary School, Mansfield Junior High and Tucson Senior High before leaving after his sophomore year to go the New Mexico Military Academy in Roswell. “I liked to have a good time and go boondocking (drink parties in the desert) rather than focus on my school work,” Hirsh says of his parents’ decision to send him away. “I didn’t have an entrepreneurial flare like developer Donald Pitt,” he adds. That last reference was in part a reference to Pitt’s orange juice venture. In 1950, Pitt hired young Hirsh to squeeze oranges when his regular supplier, Munson’s Dates, couldn’t keep up with demand. “I guess I was happy to have a job, even though Pitt only paid me pennies. Squeezing oranges wasn’t easy, and now I’ve got arthritic hands, all for 25 cents an hour,” Hirsh says. Coming back to Tucson to attend the

University of Arizona, Hirsh spent two years studying business and then was drafted into the Army. He then returned to the UA and earned his bachelor’s degree in 1960. He earned his law degree from the UA four years later. “Prior to that, I was just floating along, but that educational experience changed my life,” he says. Hirsh looks back at his days attending the UA remembering, “In those days, education was available to everyone. There were huge opportunities for children born during the Depression.” He remembers good times at Zeta Beta Tau frat house. He was “brothers” with developers Don Pitt and Donald Diamond, future Arizona Supreme Court Judge Stanley Feldman, former Phoenix Sun’s owner Dick Bloch and New York entertainment attorney Ron Konecky. “At one of our alumni softball games, there were men playing ball who would later be worth more than $20 million,” Hirsh says. “At the time, only Don Pitt had a job.” Hirsh’s legal idol has been prominent Tucson attorney Tom Chandler, formerly a partner of Chandler & Udall LLP — now the the Udall Law Firm. “He is the greatest lawyer to ever practice in Tucson. Revered for his morals, professionalism, and integrity, Tom practiced law the way it should have be,” Hirsh says of Chandler. Fast forward to 2005, when attorney Bob Hooker asked Hirsh to join him at the Pima County Public Defender’s office. Accepting the job would mean a significant reduction in salary, but Hirsh felt it would allow him the opportunity to use his expertise to help those in need. “In the last seven years, excellent lawyers, who have accepted salaries in the

low $60,000s rather than private firm jobs paying $100,000, have helped us develop the way the Pima County Public Defender office now does business. Our 80 lawyers have doubled our productivity with the same or less budget. It has been an opportunity to work with so many great people to help so many. This is a job that we don’t do for money. We simply help poor folks who are faced with challenges,” says Hirsh. Hooker was tragically killed in a head-on traffic collision in 2008. Hirsh was appointed to replace Hooker. Over the years, Hirsh has been recognized as one of the top criminal defense lawyers in the country, listed among Best Lawyers in America. He has been honored by both the Southern Arizona Chapter of the American Civil Liberties Union and the Southern California Civil Liberties Union. He was the 1994 recipient of the Arizona Attorneys for Criminal Justice John J. Flynn Award. He has served on the Pima County Commission on Trial Court Appointments. He is a founding member and former president of Arizona Attorneys for Criminal Justice and a Fellow in the American College of Trial Lawyers. In 2005 the State Bar of Arizona awarded him the Tom Karas Criminal Justice Award. When representing someone who has “flipped out,” Hirsh maintains, “There were circumstance causing such stress: like weeks of anxiety, insomnia, and the inability to function. The crime is a result of that pain. I represented a number of those cases. I recognized that the acts were tragic, but I always felt good about the overall life of the defendant. If they commit a certain act, should they be punished based solely on the moral quality of that single action. I felt that some of those found insane at the time of their crime, didn’t have that quality, and that I was doing my job.” Hirsh, 76, officially retired Thursday (March 1) from the Pima County Public Defender’s office. Like many people say when they retire, Hirsh says he’s looking forward to spending time with his family of three children, a stepson and four granchildren. One son, John, works as a river guide in the Grand Canyon. Hirsh joined him as a “boat boy” on some summertime trips. “Rafting the Colorado River is one of outdoor’s great experiences. I was able to enjoy it so many times,” Hirsh says, recalling a time when a young client asked Hirsh to carry his bag. That’s when he decided “an old man like me” needs to retire and “finally have more time to enjoy my family.”

Do you have a historical Tucson story to share? Contact Mary Levy Peachin at mary@peachin.com. Her historical columns appear the first week of each month in Inside Tucson Business.

InsideTucsonBusiness.com

MARCH 2, 2012

MEDIA

Definition of ‘newspaper’ raises questions about Citizen By David Hatfield Inside Tucson Business Take nearly any common word in the English language and nearly all of us would agree on a definition. Involve a lawyer and things get tricky. Remember President Clinton, who was a lawyer, telling the Grand Jury, “It depends on what the meaning of the word ‘is’ is.”? Take the word “newspaper.” Your elementary school teacher told you it was a compound noun, a word combining two nouns often making for a more specific definition. A dictionary definition for the word newspaper is “a paper that is printed and distributed usually daily or weekly and that contains news, articles of opinion, features, and advertising.” Most of us would agree that publications such as the Arizona Daily Star and the New York Times are newspapers. But not the Tucson Citizen — at least not since May 16, 2009, when it printed its final edition and got rid of its staff of about 60 reporters and photographers. Enter the lawyers who argued the definition of a newspaper as it applies in federal law that exempts newspaper owners from certain antitrust laws so they can combine such things as advertising sales, production and distribution operations in a joint operating agency. As a result, the U.S. Department of Justice didn’t challenge Citizen owner Gannett Co. Inc. from continuing to operate its partnership with Star owner Lee Enterprises. The partnership allows the two companies to share costs — no matter how minimal they may be for the Citizen’s website — and equally split the profits. Despite the popular notion of the dismal financial shape of newspapers, the arrangement looks to be quite profitable. For its fiscal year ending Sept. 25, 2011, Lee Enterprises reported its half-share of the profits from Tucson totaled $3.1 million from operating income of $8.4 million — a 37 percent margin. That was down from fiscal 2010 when Lee reported a $4.2 million profit but it was up from fiscal 2009 when the company reported a profit of $2.5 million. And remember, these are just Lee Enterprise’s share of the profit so presumably the total operation earned $6.2 million last year with Gannett taking out the remainder because it can call its website a “newspaper.” So why does this surface again now, nearly three years since the Citizen printed its final edition? Two weeks ago Gannett announced it would shift the websites at its 80-plus newspapers to a pay subscription model by the end of this year, which it expects will bring in $100 million in annual

revenue in 2013. The announced exception is USA Today but Laura Dalton, director of corporate communications for Gannett, said in an email that the content subscription model also will not include the Tucson website. That was to be expected considering the Tucson website consists mostly of content from unpaid bloggers and news gathered from the company’s Arizona Republic in Phoenix, not generally the stuff that would generate much money from online subscribers. But, getting back to our definition of a newspaper, it also creates a dilemma. Does the decision not to include the Tucson website with other newspapers using a pay model mean Gannett doesn’t consider it a “newspaper”? If that’s the case, does the Department of Justice have a new opportunity to challenge the legality of the joint operating agency under the guise that the website is a newspaper? And beyond that, since Gannett still plays a major role in the Tucson operation, will local online news consumers be looking at a pay version of the Star’s website any time soon?

into one to make them more valuable. If shareholders approve of the idea at the annual meeting on March 21, Lee’s board of directors will have until the end of June to decide whether to go ahead with it.

Names in news KGUN 9 chief meterologist Erin Christiansen is back on the air after suffering through a serious bout with Valley Fever. She returned Feb. 22 and KGUN officials say that for now she’s working a partial schedule, anchoring the weathercasts on KGUN 9’s 9 p.m. weeknight newscast on KWBA 58/cable 8 and the 10 p.m. newscast on KGUN. Rhonda Bodfield, one of the highprofile reporters at the Arizona Daily Star, is leaving the newspaper to take a job in the communications department at Tucson Medical Center. Lately Bodfield has been covering Tucson City Hall and writing political news stories, including a column called Political Notebook. She took a break from the Star once before. Her last day at the newspaper this time is March 9.

Padres on radio The Tucson Padres this week announced a deal to have all the Triple-A team’s games this season broadcast on KXEW 1600-AM. Although the radio station brands itself as Radio Tejano and normally broadcasts in Spanish, the Padres games will be broadcast in English, starting with a 10-minute pre-game show. Mike Feder, vice president and general manager of the Padres, said the biggest request he got from fans was to get the games on traditional radio. Tim Haggerty, who did the play-by-play of games online last year, will call the games on radio. The first broadcast will be the home opener at Kino Stadium when the Padres host the Fresno Grizzlies, Triple-A affiliate of the San Francisco Giants, starting at 6:55 p.m. April 5.

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

Lee Enterprises finances Lee Enterprises reported that as of Feb. 17, the New York Stock Exchange said it was back in compliance to have its stock listed on the exchange because it had been able to maintain an average closing price of at least $1 per share for more than 30 consecutive trading days. Carl Schmidt, vice president, chief financial financial officer and treasurer for Lee, said the company still has about a year to go to maintain market capitalization of at least $50 million for 30 consecutive trading days. To that end, Lee shareholders this month will consider a company proposal for a reverse stock split that would combine anywhere from two to five shares

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need to make knowledgeable financial decisions about cash management, payment solutions, remote deposit capture, business banking and more.

Banking deposit and loan products and services are provided by BMO Harris Bank N.A., Member FDIC, and are subject to bank/credit approval. M&I® is a trade name used by BMO Harris Bank N.A. and its affiliates. ©2011 BMO Financial Corp., All Rights Reserved. 11-351-043

16 MARCH 2, 2012

INSIDE TUCSON BUSINESS

GOOD BUSINESS ON GUARD

What businesses need to know to reduce chances of online hacking When people think about computer hacking they tend to picture individuals — older people who’ve had their identity stolen or families whose bank accounts have been fraudulently accessed online. But, for the criminals who carry out these cyber attacks, businesses are often their preferred targets. Last year was a banner year for cyber criminals stealing data from businesses. Sony, Michaels, Epsilon and Nasdaq all suffered high-profile data breaches. Many smaller firms experienced devastating data breaches as well. The losses that U.S. businesses suffered in 2011 is staggering. The nonprofit Online Trust Alliance (OTA) estimates U.S. businesses suffered a combined loss of $6.5 billion last year and that 126 million customer records were stolen. Data theft is a big business,

and criminal syndicates can command resources that dwarf the resources many businesses can afford to dedicate to data security. OTA outlines three “fundamental truths” all businesses, regardless of size, should accept about data breaches: 1. Data that businesses collect on their customers will always include some form of personally identifiable information. 2. If a business collects data it will experience a data loss incident at some point. 3. Data security is everyone’s responsibility. There are, however, steps businesses can take to ensure their customers’ data is as safe as possible. While it may be difficult for a small business to stop a determined and sophisticated team of hackers, they can at least ensure that they’re not carelessly leaving themselves open to a data breach: • Don’t keep personally identifying information on customers that is not absolutely necessary. • Design and implement a data security plan. Identify a data security plan that is appropriate for your business based on the type of data collected and stored. Also, consider the resources available to manage that data. • Take quick action in the wake of a security breach. Determine the nature and scope of the data incident, and take

appropriate steps to contain and stop the attack. Data theft isn’t limited to hackers breaking into computers and servers. Businesses have suffered huge losses when KIM STATES company laptops, smartphones or tablets are physically stolen.

Shred-It says there are a few things companies can do to protect their mobile workers: • Ensure laptops are regularly scanned for infections and equipped with up-to-date security levels. • Protect electronic interactions including email, web communications and instant messaging.

• Secure interactions regardless of whether employees are accessing company resources from Wi-Fi hotspots, their homes or anywhere else. • Ensure that obsolete mobile devices (whether laptops, smartphones

or tablets) are properly disposed of so that confidential information cannot be recovered. Erasing hard drives does not mean that data is gone. Physical hard drive destruction is the only secure way to destroy data from hard drives. • Continue to assess your company’s level of risk. Conduct a periodic information security audit of your mobile workers’ habits with regard to storing and destroying information. As innovations in IT continue to fundamentally change how many of us do business, it’s important to keep in my mind that each piece of new technology brings with it new risks. Make sure you understand what those risks are, and how they can be mitigated in order to keep your customers’ data-and their trust-secure.

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

TUCSON BBB ACTIVITY RREPORT FEBRUARY 2012 Top 10 most complained about industries

In 2011, Massachusetts eHealth Collaborative, a 35-employee nonprofit, lost more than $300,000 in legal, credit monitoring, private investigation and media consulting fees after one of its company laptops was stolen, according to OTA. On top of that, the organization’s employees reportedly spent upwards of 600 hours dealing with the fall-out from the data breach. BBB Accredited Business Shred-It, a document destruction firm with offices in Tucson, says that in the years to come businesses should expect criminals to increasingly target company mobile devices, such as smartphones and tablets. While these devices may allow businesses and their employees to be more productive, they’re also not as secure as traditional office-based IT equipment. It’s often extremely easy for a skilled hacker to gain access to these devices remotely. In a recent study, International Data Corporation, a consultancy specializing in information technology, says it expects the domestic mobile workforce (employees tethered to a smartphone or working remotely away from the office) to grow to an astounding 35 percent of the workforce by 2013.

Complaints

Settled

Plumbing contractors

50%

2. 2

New car auto d N dealers l

100%

Magazine publishers

25%

Soaps and detergents

None

Martial arts supplies and equipment

33%

Auto repair and service

100%

Correspondence schools

100%

Health clubs

67%

Property management

100%

Magazine sales

10.

Top 10 most inquired about industries

100%

Inquiries

Auto repair and service

1,079

Roofing contractors

1,051

Used car auto dealers

1,006

Air conditioning contractors and systems

968

Plumbing contractors

954

Travel clubs

802

General contractors

795

Landscape contractors

604

Dentists

587

Property management

535

10.

Source: BBB of Southern Arizona

InsideTucsonBusiness.com

MARCH 2, 2012

BRIEFS GET ON THE LIST

Next up: Acute-care hospitals, Rehabilitation centers, Nursing care centers and Home healthcare agencies 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: • March 9: Environmental resources, Recycling firms, Janitorial services, Pest control companies • March 16: Acute-care hospitals, Rehabilitation centers, Nursing care centers and Home healthcare agencies • March 23: Airlines serving Tucson, Top airline destinations from Tucson • March 30: 501(c)(3) organizations, United Way allocations, Charitable trusts • April 6: Landscape architects, Swimming pool builders If your company fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals.

To advertise your business, call (520) 2941200.

The winner of the special election will fill out Giffords term that expires Jan. 13, 2013.

POLITICS

EDUCATION/RESEARCH

Four Republicans vie for Giffords’ seat

UA proposes to hold line on 2012 tuition

Four Republican candidates filed nominating petitions to compete for their party’s nomination in an April 17 primary election to fill the seat in the U.S. House of Representatives to replace Gabrielle Giffords who stepped down in January so she could focus on her recovery from being shot Jan. 8, 2011. Barring successful challenges, the four candidates who appear to have filed petitions containing sufficient signatures are: • Frank Antenori, currently a state senator. • Jesse Kelly, who was the Republican nominee against Giffords in 2010. • Martha McSally, a former Air Force A-10 pilot and professor. • Dave Sitton, marketing executive and sports broadcaster. The special primary election will take place April 17. The winner will go on to the special general election on June 12. Ron Barber, who worked in Giffords office, is the only Democrat who is running. And Charlie Manolakis, a community activist, is the only Green Party candidate.

Continuing undergraduate Arizona-resident students would see no increase in the base tuition next school year at the University of Arizona under a proposal submitted interim president Eugene Sander. New undergraduate students, graduate students and all non-resident students would see an increase of less than 3 percent. Further, the proposal contains no new mandatory fees. The Arizona Board of Regents will consider the recommendation from the UA, as well as Arizona State Univesity and Northern Arizona University. A public hearing is scheduled for 5-7 p.m. March 28 in Gallagher Theatre in the Student Union, 1303 E. University Blvd. on campus. Proposed tuition rates at the UA’s main campus for next year are: • $10,035 for continuing Arizona resident undergraduates. • $10,308 for new Arizona resident undergraduate students, a 2.7 percent increase from this year. • $26,231 for non-resident undergradu-

ate students, a 2.9 percent increase. • $11,122 for resident graduate students, a 2.7 percent increase. • $26,533 for non-resident graduate students, a 2.9 percent increase.

$6.5M needed to get UA ready for guns The University of Arizona says it would have to come up with $6.5 million in one-time capital costs and about $700,000 more per year in personnel costs if the Legislature passes a proposal that would prohibit the state’s university from banning anyone with a concealed-carry permit to carry firearms. The Arizona Board of Regents, which voted Feb. 17 to oppose the bill (SB 1474) released the figures as part of a fiscal impact study showing the one-time capital capital costs for gun lockers, bays and signage at its 732 buildings would total $13.3 million and another $3.1 million annually in operating expenses. The study was prepared with the help of campus police units that generally recommended the safest lockers should be constructed into bays on the exterior wall of each building. The study also recommends hiring additional officers. “Guns on campus are not conducive to a productive learning environment,” said LuAnn Leonard, vice chair of the regents board.

18 MARCH 2, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE

For business owners only: A special retirement plan You’ve been so busy running and growing your business you haven’t had a chance to focus on retirement. Now you are ready to put away a considerable amount of money. Where do you get the most bang for your buck? To answer that, let me tell you a story of Michael, who with his wife started an electrical contracting business. At first it was just the two of them. Soon the company was subcontracting more help and purchasing more equipment. Grateful for having grown a large and successful company, Michael knew that to accomplish what he had, it was necessary to constantly infuse cash into his growing enterprise. Now, 20 years later, Michael reflects on whether he should have put more away for retirement rather then put every extra dollar into the business. Now he has to plan for retirement and play catch-up. He has savings and excellent income but no plan. I would like to propose a program you have probably never heard of. It is not for everybody but for those who qualify, it can’t be beat. It’s a fully-insured retirement plan. Fully insured means you know how much you will have in your retirement. It’s your private pension plan with no risk. Today, there are more retirement plan choices than ever for small businesses, but where will you find guarantees on the income you will have for the rest of your life? This plan allows you to put away far more contributions than other plans. With so many choices, it’s important to select the plan that is right for you. This type of plan is best suited to individuals who: • Own a small business, or have self-employment income • Are between 40 and 70 years old and plan to retire in five to 20 years • Have no employees, or, generally, less than six. • Have stable earnings that are expected to continue

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

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

• Need to put away a considerable amount of money for retirement • Are seeking a conservative, guaranteed investment • Would benefit from a sizable tax deduction SUSAN MOORE These types of plans can be beneficial for certain business owners or those with self-employment income. Here are some aspects of fully insured plans to consider: • The plan must be funded by annuities or a combination of life insurance and annuity contracts • The business owner must make a commitment to make ongoing contributions. With this fully-insured plan you will have a pre-determined retirement income amount that is guaranteed by the life insurance company providing the funding vehicle. It is the issuing insurance company that bears the investment risk, not you. Plan assets may be fully protected from creditors. Fully-insured plans are required by law to be funded by fixed annuities with minimum guaranteed rates, which shield the plan assets from market volatility Fully-insured plans have a higher tax deduction limit than most plans, and contributions are tax deductible. Contribution levels are higher than those made to either a defined contribution, profit-sharing or traditional defined benefit plan because: If you are a business owner ready to play “catch-up” and have the ability to make ongoing contributions for at least five years, you owe it to yourself to consider a fully-insured plan for your retirement. Contact Susan L. Moore Vault, president of Moore Financial Strategies, at susan@ moorefs.com or (520) 296-4464. She also hosts “Safe Money Strategies” from 6 to 6:30 a.m. Saturdays on KNST 97.1-FM/790-AM.

Funded with annuity only

Plan start

Retirement

Traditional profit- Traditional defined sharing with 401(k) benefit plan $49,000

$84,617

Feb. 29

Feb. 22 Change

52-Week 52-Week Low High

Tucson companies

FFULLYINSURED RETIREMENT PLANS Age

Symbol

Funded with annuity and the maximum life insurance death benefit

Fully-insured plan

Traditional defined benefit plan

Fully-insured plan

$118,067

$110,922

$143,314

$54,500

$149,413

$176,166

$183,311

$221,175

$54,500

$193,429

$222,474

$261,986

$295,572

$54,500

$190,989

$211,856

$270,395

$297,250

AERG.OB CEXI.OB PRSC UNS

0.11 0.02 15.05 36.79

0.12 0.03 15.00 37.63

-0.01 -0.01 0.05 -0.84

0.04 0.01 8.35 32.96

0.89 0.10 16.16 39.25

10.17 0.50 2.97 7.97 58.61 8.99 78.45 24.70 53.68 4.75 18.33 33.32 29.41 25.24 31.76 12.88 86.06 40.25 45.10 9.81 61.14 64.02 14.34 42.56 28.60 47.57 59.57 196.73 31.05 57.84 4.75 39.24 34.49 11.42 49.68 23.79 1.13 23.38 28.38 39.14 53.99 37.97 35.28 25.89 44.41 59.81 39.60 8.82 50.52 43.58 21.45 37.03 69.66 11.42 8.98 42.65 29.52 56.69 15.27 33.35 37.21 20.65 110.25 42.64 7.41 29.40 59.08 33.16 31.29 8.14 19.00

10.38 0.51 3.09 7.95 58.40 9.12 78.93 25.08 52.77 4.73 18.45 32.36 29.28 23.85 31.89 13.01 84.31 39.29 43.69 9.93 52.20 65.82 13.93 44.12 27.02 46.57 59.51 193.87 30.82 60.92 4.71 38.07 33.35 11.26 52.19 23.64 1.13 22.09 26.95 38.71 53.40 37.68 34.44 24.89 43.02 60.05 41.60 8.33 50.41 43.68 22.67 36.96 52.08 11.99 9.02 42.35 31.69 52.97 17.27 32.96 37.08 20.94 112.08 52.13 7.70 28.81 58.60 34.29 30.59 7.97 18.79

-0.21 -0.01 -0.12 0.02 0.21 -0.13 -0.48 -0.38 0.91 0.02 -0.12 0.96 0.13 1.39 -0.13 -0.13 1.75 0.96 1.41 -0.12 8.94 -1.80 0.41 -1.56 1.58 1.00 0.06 2.86 0.23 -3.08 0.04 1.17 1.14 0.16 -2.51 0.15 0.00 1.29 1.43 0.43 0.59 0.29 0.84 1.00 1.39 -0.24 -2.00 0.49 0.11 -0.10 -1.22 0.07 17.58 -0.57 -0.04 0.30 -2.17 3.72 -2.00 0.39 0.13 -0.29 -1.83 -9.49 -0.29 0.59 0.48 -1.13 0.70 0.17 0.21

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 24.98 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 6.96 6.29 14.70 66.64 13.01 86.91 33.22 59.59 7.29 29.88 46.90 29.92 42.50 51.43 14.66 88.68 43.49 45.00 11.64 61.08 70.15 14.79 58.75 30.49 48.07 62.28 199.23 35.79 62.33 6.10 47.80 38.40 13.67 57.39 25.85 3.47 24.35 28.46 44.46 56.51 38.22 39.29 28.66 52.57 70.61 43.18 9.31 53.12 45.65 25.43 40.75 87.69 17.28 12.88 43.22 31.89 56.09 22.39 36.71 39.24 26.84 117.40 58.29 10.35 29.74 62.63 47.11 32.97 8.51 24.92

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

InsideTucsonBusiness.com

MARCH 2, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Land Advisors Organization celebrates 25 years By Roger Yohem Inside Tucson Business

Peoria and has more than $1 billion in commercial space. The Tucson office is at 6261 N. La Cholla Blvd., Suite 111.

Just two weeks before Oct. 19, 1987, a day that became known as Black Monday when stock markets around the world crashed, Greg Vogel launched his brokerage firm specializing in raw land. From that untimely beginning in Scottsdale, Land Advisors Organization struggled but soon found a niche and established a solid business reputation. Originally branded as Arizona Land Advisors, the economic downturn meant hard times for land brokers. With real estate in a free fall, Vogel ran the business on his credit cards. Now in its 25th year, the company has not only survived but thrived. It has 21 offices in six other states and a major presence in Tucson. “We have been very well received here, as trusted advisors,” said Tucson executive Will C. White who opened the local office in 2001. “We specialize in selling large land tracts to investors. They’re thinking and buying five years in advance.” Once investors make their purchases, White continues to work with them to prepare for an eventual sale to developers for master-planned communities, home builders, or other investors. The Tucson office is at 3561 E. Sunrise Drive. Prior to joining Land Advisors, White worked at Tucson Realty & Trust for four years.

CBRE top producers Commercial real estate company CBRE Tucson has honored five of its executives for their achievements in 2011, including first vice president Buzz Isaacson as the company’s top producer. Isaacson, with more than 35 years of experience in commercial real estate, was honored in the office category. During his career, he has completed over 2,000 sale and lease transactions in the Tucson market. His son, Ike, also was honored in the same sector. CBRE also recognized Tim Healy in the industrial sector, Nancy McClure in retail and W. Michael Sandahl in investment.

2 retail centers for sale

Buzz Isaacson

Schwiebert shift Veteran real estate executive Howard Schwiebert has shifted into a different specialty as the Plaza Companies’ new senior portfolio manager. With more than 25 years of experience, Schwiebert handles all leasing and property management for the Plaza’s Tucson portfolio of medical office, senior housing, mixed-use properties, and bio-tech facilities. Plaza Companies oversees four medical offices owned by Healthcare Trust of America, a national REIT (real estate investment trust). The properties are Academy Medical Center, 310 N. Wilmot Road; Desert Life Medical Center, 2001 W. Orange Grove Road; La Cholla Medical Center, 6261 N. La Cholla Blvd.; and Gateway Medical Plaza, 6320 N. La Cholla Blvd. The company also is a major player in the senior living market with the development of its award-winning Splendido at Rancho Vistoso. Schwiebert joined the firm from Tucson Realty & Trust, where he had served three years as investment specialist. Prior to that he worked 20 years as an asset manager and vice president at James Campbell Company in Hawaii. Plaza Companies is headquartered in

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

Current

Last Week

2/27/2012

One 12 Month 12 Month Year Ago High Low

4.00% 4.25%APR 4.00% 4.25%APR 6.18% 3.50% 3.75%APR 3.50% 3.75% APR 5.94% 3.00% 3.375%APR 3.00% 3.375% 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%

Two large local retail “power centers” owned by Phoenix-based Barclay Group are up for sale, according to RealEstateAlert. com, an online trade publication. The largest complex is the 1 million square foot Tucson Spectrum at Interstate 19 and West Irvington Road. The other center is Rooney Ranch, a 565,000 square-foot center at North First Avenue and North Oracle Road in Oro Valley. Both centers include major anchors and brand name retailers, and have notes that mature over the next two years. At Tucson Spectrum, Target and Home Depot own their stores and major tenants include Food City, JC Penney, Best Buy, Harkins Theaters, Bed Bath and Beyond, and Marshalls. RealEstateAlert.com reported that a buyer would have to assume a $24.6 million loan that matures in 2014. At Rooney Ranch anchors Target, Home Depot and Fry’s Food Stores own their stores. Key tenants include Ross Dress for Less, Petsmart, Office Max, Pier One Imports and Sports Authority. The 65-acre property has an assumable $4 million loan that matures in November 2013.

Robinette award Professional Builder magazine has recognized Robinette Architects, 1670 E. River Road, for two custom homes in Oro Valley designed by the firm. Robinette Architects, founded by Rob Robinette in 1984, received the platinum award for best “One-of-a-Kind Custom Home” for a project called Secluded Canyon Residence. For projects in progress, it won a bronze award. Both homes are in the Stone Canyon development near the Tortolita Mountains.

Sales and leases • Alexander and Irina Rudnitsky, doing business as CN Bistro, leased 2,310 square feet at 4951 E. Grant Road from Crossroads East of Tucson, represented by Nancy McClure, CBRE.

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

TUCSON REAL ESTATE

2/20/2012

2/13/2012

$137,815 6,634 351 86 224

$129,000 6,584 347 74 207

Source: Long Realty Research Center

• Forward Strategies Insurance Brokerage leased 2,259 square feet at 10371 N. Oracle Road, Suite 102, Oro Valley, from Lake Investment Group LLC. Tom Nieman, Picor Commercial Real Estate Services, represented the landlord. Karen Farrell and Jordan Simon, Venture West, represented the tenant. • United Healthcare Services Inc. leased 2,248 square feet at 6245 E. Broadway in Nova Financial Center from Tucson Broadway Office Plaza LLC, represented by David Montijo, CBRE. The tenant was represented by Steve Corney, Jones Lang LaSalle, Phoenix. • SWAT Strength Wellness Athletic Training leased 2,233 square feet at 3820 S. Palo Verde Road, Suite 107, from Palo Verde Trust Partners, represented by Rob Glaser and Paul Hooker, Picor Commercial Real Estate. Jean Barclay, Oxford Realty Advisors, represented the tenant. • Perry Arts Inc. leased 2,214 square feet at 410 N. Toole Ave. in the Historic Depot from the City of Tucson, represented by Buzz Isaacson and Ike Isaacson, CBRE. • Diversified Pharmacy Solutions LLC leased 2,200 square feet at 1171 E Rancho Vistoso Blvd, Suites 159-161, Oro Valley, from Mountain Vista Plaza LLC, represented by John Yarborough, Romano Real Estate. • Northgate Laundromat & Cleaners leased 2,200 square feet at 3993 E. Grant Road from TNP SRT Northgate Plaza Tucson LLC, represented by Debbie Heslop, Volk Company Commercial Real Estate. • First American Title Insurance leased 2,189 square feet at 1881 N. Kolb Road from Odie Enterprise LLC, represented by Tari Auletta, Grubb & Ellis. The tenant was represented by Rick Kleiner, Picor Commercial Real Estate. • Ideal Rehabilitation LLC leased 2,155 square feet at 5975 E. Grant Road in Grant Road Professional Plaza from DAZ5-Grant Road LLC, represented by Doug Marsh, Oxford Realty Advisors. David Hammack, Volk Company Commercial Real Estate, represented the tenant. • Heartland Health Therapy Inc. leased 2,080 square feet at 3400 E. Speedway from Rancho Center LLC, represented by Debbie Heslop, Volk Company Commercial Real Estate. The tenant was represented by Matt Wallace, Bourn Advisory Services. • Sea Ops LLC leased 2,056 square feet at 2756-58 N. Campbell Ave. from Gee Properties-3 LLC, represented by Greg Furrier and Jeff Zellet, Picor Commercial Real Estate. • Sahuaro Plastic Supply leased 2,000 square feet at 2112 N. Dragoon St., Suites 9 and 21, from Rich Rodgers Investments Inc. Brandon Rodgers, Picor Commercial Real Estate, handled the transaction. Email news items for this column to ryohem@ azbiz.com. Inside Real Estate & Construction appears weekly.

20 MARCH 2, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Coke Freestyle machine can be a news story The best part of my job continues to be talking to business people about their successes. I don’t think I’ll ever be surprised at some of the things that can make a difference in a business. Often it’s small business and some of those stories can be even more inspiring because of the personal risk — literally — taken by the business owner. Who can begrudge a business DAVID HATFIELD owner for achieving success after putting their home on the line for a loan? Or wagering their entire credit card limits on a business? Fortunately, I’ve been able to make some good friends along the way. I also have family members who are in business. And everyone has a story. When I first got this job in 2004, I took a fair amount of heat from online comments about the fact that I had previously worked in TV. Somehow it became a favorite line of criticism to suggest that because of that I didn’t have the same journalistic standards. Lately, I’ve heard things from friends and family that we haven’t used in Inside Tucson Business or online. One friend who runs a medium-sized distribution business pulled me aside at a recent meeting wondering if our relationship was interfering with our coverage of her business — especially in light of the fact that news stories about her business were publicized in other media. That wasn’t the case, of course. I and the rest of our staff at Inside Tucson Business are capable of figuring out what’s newsworthy and what’s not. But as I looked back on this particular situation I had to admit to myself that we had short-changed her and her business in our coverage. There were three stories: one was about a change in the business, another was about a philanthropic endeavor and the third was about an investment in an environmental conversion of vehicles. All held some interest for a wider audience and we eventually used each of them, though we waited too long. In another instance, my son-in-law, who runs Mr. Goodcents Subs & Pastas, 4726 E. Broadway, was excited to tell me that his quick-service restaurant had installed a Coca-Cola Freestyle machine. He believes it’s the fifth such machine installed in the Tucson market, after one at the University of Arizona Student Union and two each at locations of El Taco Tote and Wingstop. If you haven’t seen one of these things, the best way for me to describe it is to say that it’s a modern-looking computerdriven vending machine that allows the consumer to mix and match different formulas and sweeteners that make more than 100 different soft drink combinations. My son-in-law said the reaction is astounding. In his business it has probably been the single change that has had the most impact. Business success stories can be found; even in these times of a struggling economy. It’s great fun to hear them.

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

EDITORIAL

Political games just when we don’t need them Two years ago the Democratic Party helped engineer a Republican primary victory by Jesse Kelly over Jonathan Paton in Congressional District 8 so their candidate would have a less formidable opponent in the general election. Considering their candidate, an incumbent, prevailed with just a 1.5 percentage point margin of victory shows how important the Democrats’ underhanded maneuver was to them. Paton, a much stronger challenger, could well have won that seat in the general election. We’re talking, of course, of the seat that Gabrielle Giffords won. The shootings of Jan. 8, 2011 have since then upended the political discourse in Southern Arizona. Yet, sadly, Democrats are continuing to play games for their own political ends without regard to what’s best for constituents. Giffords’ remarkable recovery from the shooting is nothing short of astounding. And, regardless of politics, there was no overwhelming call for her to step down. Among the remarkable jobs that were being done, the staff in Giffords’ office continued to perform extraordinarily well, delivering on constituent services and making sure a voice was being heard on important matters in every way a Congressional representative could be heard, except voting on the floor of the U.S. House of Representatives. Even that hardly mattered as there wasn’t a vote on an issue that was close enough for a single vote to have made a difference. Somehow too, despite Congress’ poor reputation, we think that if an issue negative to Giffords’ district had surfaced, her office and those of her friends in the House, such as Rep. Debbie Wasserman-Schultz, D-Fla., would have made certain to be heard and probably prevailed. Considering the circumstances we in Southern

Arizona, we’re in good hands. Giffords’ recovery was far too important and she had the luxury of waiting until the mandatory May deadline to decide whether to pursue another term. At worse she would fill out her term. Now that is gone. The decision to have Giffords resign in January serves the Democratic party’s purpose of throwing Republican candidates into a feeding frenzy, for not just one but two election cycles, the April 17 special primary and June 12 special general elections and then the regular primary and general elections later this year. It also will cost taxpayers as much as $1.9 million, according to Pima County officials. And the orchestrated plan to have Giffords’ former district director Ron Barber run as the sole Democratic candidate in the special elections is just a convenient part of the scheme. Considering he says he doesn’t intend to seek the seat in the regular election, what difference would it have made had Barber merely taken his old job back and run Giffords’ office for the remainder of this term? In the meantime, Arizona’s Congressional District 8 is left without representation whatsoever, just at a time when it could be needed with the U.S. Postal Service confirming it wants to go ahead with its plan to shut down mail sorting operations. The sorting facility, at 1501 S. Cherrybell Stravenue, is technically in U.S. Rep. Raúl Grijalva’s district, but if there is to be any hope of overturning the Postal Service’s decision, officials will need to hear a resounding argument for all of those with the power to persuade. It’s a sad state of affairs for the Democrats to prey upon the tragedy on Jan. 8, 2011, for what they see as their own political gain. But that is clearly more important to them than representing the constituents of Congressional District 8.

InsideTucsonBusiness.com

MARCH 2, 2012

OPINION ADVOCATING FOR BUSINESS

Question for city, town and county officials: Where were you? Knock knock. Is anyone home? Does anyone on the local town councils, the Tucson City Council or the Pima County Board of Supervisors want to root for the home team? Apparently not. The 162nd Air National Guard Fighter Wing is competing with other Air National Guard facilities around the country to have squadrons of the new F-35A fighters sent here. Having the F-35 stationed here in Tucson means a lot of good things for our community: • Getting ready to receive the F-35s requires at least $176 million in construction projects at Tucson International Airport resulting in a two- to three-year stimulus for the Pima County economy and 1,800 new jobs. • No increase in safety risks and a reduction of pollutant emissions compared to the current F-16 training missions. • The 162nd currently employs more than 1,450 Southern Arizonans, almost all of whom pay taxes. • The F-35 is a great fit for the newly targeted aerospace and defense industry cluster Pima County is proposing bonds to enhance. The Air Force and the 162nd have gone out of their way to demonstrate sensitivity to the environment and to the community. Their draft environmental impact statement is well-prepared and builds confidence that the F-35’s arrival has been thoroughly researched. At the three public meetings hosted by the Air Force and the 162nd in February

legions of concerned citizens — many of them living in the current flight path — veterans, representatives of the Davis-Monthan 50 and business owners MIKE VARNEY spoke on behalf of the home team. The Tucson Metro Chamber had at least one executive at each meeting. Chamber executives didn’t just show up — we spoke up! We want the F-35 to come to Tucson! Missing from all of the public hearings were the politicians who are trying to convince us they are in favor of economic development. Where were you, elected officials? Were you really too busy to help bring $176 million in construction projects to Tucson? Are you really too afraid someone in your ward or district will take issue with the leadership you did not demonstrate? Actions speak louder than words. Your words about wanting jobs and economic growth in the region lose credibility when no one from any town council, city council or the board of supervices could find the time to cheer for the home team. By contrast, here are some headlines from the Phoenix area and the campaign to bring the F-35 to Luke Air Force Base near Glendale: • “Wide support for F-35s at Luke shown at West Valley forums” — Arizona

Republic, Feb. 21 In the article, Jim Dean, a spokesman for the Dysart Unified School District, said, “The jets in no way impact the school, or are we concerned moving forward.” • “Do your part to strengthen Luke’s F-35 chances” — Arizona Republic editorial by the Southeast Valley editorial board, Feb. 13. • “Glendale Luke AFB still preferred site for F-35” — Arizona Republic, Jan. 20. This article quotes Glendale Mayor Elaine Scruggs, saying she had “joined McCain in asking residents to continue to support the F-35.” In the same article, Peoria Mayor Bob Barrett said, “It is gratifying to see our efforts combined with that of our West Valley neighbors to have an opportunity to show the Department of Defense why Luke Air Force Base is the best training site for the F-35.” • “Glendale Luke AFB jet-noise issue revving up” — Arizona Republic, Jan. 30. Check out this from the article: “Former El Mirage City Council leaders in 2009 had raised concerns about noise levels and negative economic impacts of the base on their community. Since then, the leadership has changed to become pro-Luke.” It is disappointing that during this difficult financial time for the Tucson community, our local government entities appear to be AWOL for such a worthwhile project that would not only help bolster our economy, but also help solidify the long-term presence of the 162nd Air National Guard Fighter Wing — and its

economic impact — in our community. What is even more disheartening is how this inaction compares to other communities, such as Phoenix, which are actively courting the F-35s. That said, it is not too late for our elected officials to act, but this project is taxiing down the runway. We call upon all local elected officials to immediately and meaningfully support the 162nd Air National Guard and the Air Force in this endeavor before we let another opportunity “take off ” and leave our community even further behind. The Tucson Metro Chamber remembers that during the recent election cycles all local elected officials promised to enhance economic development and bring jobs to our community. It bears repeating that action, or even more importantly inaction, speaks louder than words. This community and this chamber are watching what you do way more than we are listening to what you say. We are keeping score and when it comes time to hold our elected officials accountable, we will not sit idly by. In fact, we will take the appropriate action. Economic growth is more than a campaign phrase. It is action. Opportunity is knocking, can we afford not to answer?

Contact Mike Varney, president and CEO of the Tucson Metro Chamber, at mvarney@tucsonchamber.org or (520) 792-2250.

GUEST OPINION

Facts trump rhetoric, Pima County is business-friendly Unfortunately, political discourse and debate today is infected with amnesia when it comes to truth and facts. So it is with the opinion by Joe Higgins and Chris DeSimone in Inside Tucson Business (Feb. 10 issue) entitled “It’s an election year, so Pima County is concerned about business.” Their opinion piece makes for good political theater, but it lacks facts. Pima County has been, is and continues to support business expansion and development in our community. A few factual examples will confirm this is the case. • Pima County, through a Foreign Trade Zone designation, helped land the Target fulfillment center, with 450 permanent employees. • Pima County, by deeply discounting

property taxes for the next 10 years, helped the Town of Oro Valley secure an expansion at Roche Group’s Ventana Medical Systems, with 500 new jobs and a capiRAMÓN VALADEZ tal investment of $180 million. This property tax discount was provided without any reduction in tax revenues to schools or fire districts. • Pima County facilitated the acquisition of State Trust land by Caterpillar Inc. to expand the company’s Tinaja Hills

Demonstration and Training Center. • Through discussions that began in 2006, Pima County is leading the effort to protect our largest private sector employer, Raytheon Missile Systems, by purchasing buffer lands and promoting an economic development bond issue that sets the stage for future significant growth and success in the aerospace and defense industry. • Since 2004, Pima County has authorized and spent $10 million to purchase properties in the Davis-Monthan Air Force Base Departure Corridor allowing the base to remain open and viable and not become obsolete due to urban encroachment. • Pima County facilitated the major expansion of the Tucson Trap and Skeet Club, enabling the club to attract national

and international shooting competitions. • Pima County has accelerated bond programs, infusing more than $800 million in capital into the private construction industry, creating or sustaining 12,000 construction jobs since 2006. These are just a few of the more significant efforts Pima County has led to attract and retain business within our community over the last six years. Pima County is, has been and continues to be business-friendly. Facts trump political rhetoric every time.

Ramón Valadez is chairman of the Pima County Board of Supervisors. Contact his office at (520) 740-8126.

22 MARCH 2, 2012

INSIDE TUCSON BUSINESS

OPINION BUSINESS INK

Hike the Grand Canyon, get a keychain made in China Buying American hasn’t been fashionable since Phil Knight Nike-ized the nation in 1996. He convinced millions of consumers that the fastest way to the top of the social hierarchy ladder was to buy his over-hyped, over-priced Air Jordan sneakers. Nike shoes have never been made in the United States. The shoe’s footprints can be traced back to sweatshops in Asia. Having been born and raised in a blue collar union town in a card-carrying family, I have never or will ever give Nike a nickel. Buying American hasn’t connected with tech-savvy hipsters since Steve Jobs re-orchestrated the world with the Apple iPod in 2001. The iPhone and iPad followed. All of this i-mania also connects to overseas labor exploitation. Most Asian factories pay their assemblers dimes instead of dollars compared to American labor. Plus, there are the reports of assembly line conditions and pressures, such as in China, that are so horrid workers commit suicide. As the U.S. continues to shake off the Great Recession, here’s an economic and political agenda everyone can agree on: It’s time to buy American again. And as part of the paradigm shift, it’s also time to bring some manufacturing jobs back to these shores. It’s a movement that’s getting some presidential teleprompter time in Washington, D.C. And if we’re lucky and our local

leaders get aggressive, we could sure use some of those jobs in the Tucson region. (Think maquiladora manufacturing.) For the sake of full disclosure, I ROGER YOHEM am a guilty consumer. Our family owns countless possessions of foreign-made stuff and has shamelessly contributed to the U.S. trade deficit for years. But now is the time for an attitude adjustment. It’s time to be a smarter shopper in an effort to keep our hardearned dollars in the hands of other hard-working Americans. It all starts with a little consumer education. Technically, “Made in America” has no definitive standard. The Federal Trade Commission’s law states that “all or virtually all” of the product must be made in the United States. For consumers, the bottom line is there is no 100 percent certainty. That being said, the “virtually all” majority rules. Instead of Nike, our family buys New Balance tennis shoes. Although the Boston-based company imports some

foreign materials, its products carry the label Made in America. And as a feel-good bonus, New Balance is an official supplier to the U.S. military. For dress, casual and work shoes, Minnesota’s Red Wing Shoe Company is a domestic option. So is Alden Shoe Company in Massachusetts, founded in 1884 and still family-owned. For clothes, Protexall produces work clothing and uniforms. For business suits, it’s Oxxford. Both companies are based in Illinois. And for a global icon, what screams America more than blue jeans? For authentic American-made jeans, there’s All American Clothing Co., Buddy’s and Diamond Gusset. Texas Jeans even boasts that it uses cotton only grown in the United States. The choices also include some American-made Wranglers, Levi’s and Lee, but it takes some effort to find them. VF Corp. has plants in the U.S. and globally. This next category should be a proclamation from Tucson City Hall. Since city officials aspire to be a “platinum level” bicycle-friendly community from the League of American Bicyclists, shouldn’t they require “all or virtually all” Tucson cyclists to ride American-made bikes? And park them at American-made bike racks? As part of their green political agenda, Tucsonans should cut their dependence on foreign oil and foreign bicycles. Imagine

the global publicity if El Tour de Tucson competitors were required to ride American-made bikes. Seriously, it’s time to give American products another look. Buying U.S.-made stuff could lower unemployment. For local governments, the benefit is new tax revenue instead of money going to overseas firms that pay no taxes in the U.S. Former President Bill Clinton already is on the buy American-made bandwagon, urging consumers to rise to the challenge and be part of the solution in his new book “Back to Work.” He cites Made in USA Certified, an independent company that verifies the authenticity of materials and manufacturing claims. It will take some extra effort to buy American. Dozens of websites, with names like Made in USA Forever, offer some tips. There are American-made electronics, computers, tires, furniture and other consumables out there. Not to mention vehicles. This summer, we will be in the market for a car and our goal will be to buy American — for the first time in over 10 years.

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

InsideTucsonBusiness.com

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MARCH 2, 2012

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24 MARCH 2, 2012

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