Inside Tucson Business 04/12/13 by Territorial Newspapers

REAL MUD ON THEIR BOOTS Students get livestock experience at UA Meat Sciences Lab PAGE 20

Your Weeklyy Business Journal ffor the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • APRIL 12, 2013 • VO VOL. OL. L 22, N NO. 46 • $1

Gadsden's purchase City asked to amend west side development deal Page 4

Secureaplane takes flight High-tech business breaks ground at Innovation Park Page 6

Real estate is on a roll Housing sector maintains its momentum Page 23

Lights dimming on growth of solar in Arizona By Vivian Padilla Cronkite News Service After years of rapid growth, residential solar power installations in Arizona are likely to slow in the near future as prices tick up and utility incentives shrink. For 2012, Arizona was the nation’s second-largest market for residential and commercial solar growth, adding 710 megawatts worth photovoltaic panels to rank behind only California, according

to the Solar Energy Industries Association. Consumers have benefited from oversupply as companies rushed into the market, but the recent collapse into bankruptcy of Suntech Power, a Chinese firm with a facility in Goodyear, is a symptom of the industry shaking out due to competition, said Stephen Goodnick, professor of electrical engineering at Arizona State University’s Ira A. Fulton School of Engineering.

“I wasn’t surprised in general that a number of companies were having financial difficulties because of so many competitors in the same market,” Goodnick said. “There are several Chinese companies that are in a similar situation to Suntech.” Harvey Bryan, senior sustainability scientist with ASU’s Global Institute of Sustainability, said deep reductions in solar rebates offered by utilities regulated by the Arizona Corporation Commission

may make panels look less attractive to some homeowners. For Tucson Electric Power and Arizona Public Service customers, residential solar incentives went from 75 cents per watt in 2012 to 10 cents per watt today. For a typical five-kilowatt system costing around $27,000, that’s a drop from $3,750 to $500. Members of the commission said they wanted the solar industry to sustain itself and not have to rely so much on ratepayers.

2 APRIL 12, 2013

INSIDE TUCSON BUSINESS

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Sandy Alter Director

Tari Auletta, CCIM Director

Jesse Blum Associate Director

Hannah Carrillo Administrative Manager

Bob Davis Managing Director

William Divito Managing Director

Tom Hunt Associate Director

Justin Lanne Managing Director

Scott Soelter Associate Director

Suzanne Startt Property Manager

Ron Zimmerman Director

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InsideTucsonBusiness.com

APRIL 12, 2013

NEWS

Roadmap steps up UA’s game for technology transfer By Patrick McNamara Inside Tucson Business A little more than a year after announcing plans to overhaul its technology commercialization efforts, the University of Arizona has completed a document to guide the process. “Tech Launch Arizona: Roadmap, 20132018,” released by the university, charts UA’s future course for capturing more revenue from in-house developed technologies and creating more collaborations with private industry. “When we say technology transfer, we really are talking specifically about helping faculty to transfer their knowledge to benefit the broader society,” UA President Ann Weaver Hart said in an interview. Hart said the traditional university approach to research has been more isolated, with institutions and academics conducting research for an audience of peers. But the approach and attitude toward research has begun to change, she said, and the focus on technology transfer exemplifies that. The Roadmap document identifies four areas of improvements in technology transfer by 2020: • Intellectual property income • Number of patents issued • New companies started • Number of invention disclosures. In each category, significant increases are planned. In intellectual property revenue, for instance, the university wants to see annual increases to nearly $3.5 million up from slightly less than $2 million now. Despite the planned changes, Tech Launch Arizona Executive Director David N. Allen said the core mission of faculty will not change. “Our teams cannot commercialize any-

Phone: (520) 294-1200 Fax: (520) 295-4071 3280 E. Hemisphere Loop, #180 Tucson, AZ 85706-5027 insidetucsonbusiness.com

Harkins to reopen Marana movie theaters on May 2 Harkins Theatres has announced it will reopen the former Tower Theatres as a 12-screen multiplex named Arizona Pavilions 12 on May 2. The timing coincides with the release of the film “Iron Man 3.” This will be Harkins’ second multiplex in the Tucson region. It also operates Harkin Tucson Spectrum 18, 5455 S. Calle Santa Cruz. Harkins, a privately-owned company headquartered in Scottsdale, says the Arizona Pavilions 12 facility, 5755 W. Arizona Pavilions Drive, Marana, is in the midst of extensive remodeling in preparation for the reopening. Tower Theatres, which was locallyowned, closed suddenly March 28 after it was unable to come to an agreement with the property’s landlord, according to managing partner Kent Edwards.

Larry H. Miller keeps dealers closed on Sundays

David Allen

Ann Weaver Hart

thing but the best research,” Allen said. Hart agreed, adding that traditional research would still make up an important function at the UA. “We’re not setting up a situation where everyone has to have a personal interest (in technology commercialization),” Hart said, adding that some faculty members don’t work in areas that lend themselves to commercialization. The Roadmap report also identified the need to add more staff positions to make technology transfer more feasible and provide support to faculty. The report said technology licensing managers would need to be placed in various university colleges and institutes to help facilitate technology transfers. Another way the university would seek to increase technology transfers would be to create an early stage funding plan to help spinoff companies get off the ground. Allen said a feasibility study would

need to be conducted to determine how the funding would occur. He said the money for the fund would probably not come from the university’s budget or tuition revenue, but from private donors and other friends of the university. He speculated the fund, tentatively called CatFund, would dole out money in small increments up to about $200,000. The Roadmap plan also notes that UA traditionally has not fared well in technology commercialization. Weaknesses identified in the study include: “A long history of commercialization under performance and a weak pipeline of royalty producing licenses.” Hart said that could be the result of not placing priority on technology transfers, even though the university is known as a major source of scientific research. “No one has taken it on as a major area of importance for the university,” she said. CONTINUED ON PAGE 5

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

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Despite some earlier concerns, the Larry H. Miller Dealerships has decided that it won’t tamper with a long-standing tradition among Tucson new car dealers to remain closed on Sundays. The Salt Lake City-based dealership group has acquired four dealerships owned by the Avondale Auto Group: Tucson Dodge Ram, 4220 E. 22nd St.; Tucson Chrysler Jeep, 7800 E. 22nd St.; Tucson Volkswagen, 900 W. Auto Mall Drive; and Tucson Fiat, 1000 W. Wetmore Road, along with three dealerships in Avondale. With these latest acquisitions, Larry H. Miller Dealerships will operate 13 car dealerships in Arizona and 55 dealerships selling 19 different automotive brands in seven Western states. The company ranks No. 10 on the Automotive News list of top 125 dealership groups in the country and remains so with these latest acquisitions. After word got out of the acquisitions last month, other Tucson area dealers confided they anticipated their large new competitor might change the tradition of closing on Sundays. Currently, only AutoNation’s two new car dealerships, BMW Tucson, 855 W. Wetmore Road, and Dobbs Honda, 810 W. Wetmore Road, are open for sales on Sundays.

EDITORIAL INTERNS LAUREN SHORES ALEX WAINWRIGHT`

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.

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

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Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

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4 APRIL 12, 2013

INSIDE TUCSON BUSINESS

NEWS The chief financial backer of a planned medical center for Green Valley says the project is still a go as it looks to find another codeveloper to replace Tucson Medical Center, which has dropped out of the project. Jim McDowell, principal of McDowell Enterprises, Scottsdale, whose company has lined up financing of about $50 million from foreign investors, said he is forging ahead with the project. It is currently going the planning process with Pima County. The company initially said it hoped to have it open by spring 2014 but now that now has been pushed back until summer next year, according to the architect, Swaim Associates, Tucson. McDowell, who declined to speculate on which hospital operators might be willing to partner with his company, said securing an agreement may push the project back perhaps a couple of months but said they are “100 percent committed” to building the hospital. He would not name a date for groundbreaking, but development representative Frank Thomson of Fairfield Homes and project engineers have been talking of site work beginning this month. Julia Strange, a vice president with Tucson Medical Center, said the hospital’s board failed to reach terms on an agreement and dropped the project. “It was a proprietary, private business negotiation,” a board decision, she said, declining to elaborate. A source close to the deal said TMC’s due diligence came to the conlcusion the project wouldn’t be profitable.

McCusker’s Sinfonia to buy home nursing service Sinfonia HealthCare Corporation, the healthcare company recently formed by Fletcher McCusker, has agreed to buy 49 percent of Tucson-based Assurance Home Care and Assurance Caregivers. McCusker, former CEO of Providence Service Corporation, founded Sinfonia earlier this year. The agreement provides Sinfonia with skilled nursing and companion care, as part of the company’s vision of providing a complete array of home health care services. With this agreement the company expects to hire additional employees. Assurance is certified by Medicare and has contracts with the Veteran’s Administration, Aetna, Blue Cross Blue Shield of Arizona, United Health Care, Coventry, PHCN, Carecentrix and Bridgeway. McCusker has said his new company had planned to move quickly toward acquiring small-sized healthcare providers in the Tucson area, suggesting that regulations of the federal Affordable Care Act would be difficult for small providers. Assurance, formed in 2009 by Danielle Sipe, RN, BSN, as a provider of home-based, skilled nursing and other home health related services.

City looks to change westside development deal, postpone streetcar payments By Patrick McNamara Inside Tucson Business A 2008 deal that gave a contractor exclusive rights to develop city-owned property west of downtown appears ready to be changed, allowing for slower development and to delay its share of payment for the modern streetcar development. With opposition only from City Councilman Steve Kozachik, the council told the city manager and attorney Tuesday (April 9) to write amendments to the deal that would allow Gadsden Company to alter the development schedule for the 14-acre plot on Congress Street west of Interstate 10. “From a city management standpoint, I think it’s a bad decision,” Kozachik said. The amendments would allow the company to develop only a portion of the next phase of the property, which was divided into phased development blocks when the city and Gadsden finalized the deal in 2008. Gadsden wants to build on only one block of the upcoming second phase of the development and have the remaining blocks collapsed into the final two phases. The proposed second phase would include building a multi-level, multiuse building that includes underground parking, ground-level retail and affordable housing in upper levels. Gadsden has been working with the U.S. Department of Housing and Urban Development to receive funding for the project. According to the agreement, Gadsden was supposed to purchase the second phase blocks from the city two years after the closing of the first phase. That date is May 13. In addition, the company wants to postpone payments to the city, required under terms of the deal, to fund a portion of the western end of the Sun Link modern streetcar project. The original deal stipulates that Gadsden would pay $3.2 million toward construction of streetcar infrastructure prior to the May 13 date. Gadsden wants the city to allow it to pay instead by April 2014. Kozachik also questioned that change, suggesting it could create problems with the federal funding that was acquired to build the streetcar. The Gadsden contribution was included as part of the application for the U.S. De-

Gordon Bates

Green Valley hospital still a ‘go’ despite TMC pullout

Gadsden Company has asked the City of Tucson to amend a 2008 agreement that gave it preferred developer status for the city owned property at Congress Street near Interstate 10. The company is required to pay $3.2 million toward the Sun Link streetcar project, which runs next to the property.

partment of Transportation grant. Councilwoman Regina Romero has been a champion of the Gadsden project and defended the changes. “The city has been sitting on this land since the 80s,” Romero said. The 14-acre parcel was part of a 68-acre section that the city bought in the 1980s with help from a federal Community Development Block Grant. Romero said the agreement to build on the property was important because it came at time when few developers were interested in west side developments. Gadsden and its affiliates have already built housing and retail on properties adjacent to the land subject to the development deal. As part of the proposed amendments, Gadsden would agree to post an additional $500,000 in performance bonds, bringing the total amount to $1 million. The bonds would secure that Gadsden meet its obligations and the city would keep the money if the obligations under the development agreement were not met.

The company also would agree to complete Linda Avenue, which runs into the property, at a cost of nearly $500,000. Gadsden also would agree to waive the city’s obligation under the original agreement to make improvements to land south of the parcels where the so-called “hole-inthe-ground” property lies. The city was to bring that property up to construction grade to make fit for development after environmental remediation occurred. “I hope we never negotiate another development deal like this again,” Kozachik said. A senior housing apartment stands on completed first phase of the development. When fully built, the 14-acre property is expected to have a mix of residential and retail developments. The council is expected to vote on a finalized package of amendments on May 7.

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

InsideTucsonBusiness.com

APRIL 12, 2013

NEWS

Better airline service will mean hard work for Tucson

This Week’s

Good News

By David Hatfield Inside Tucson Business

Katy Smith / Tucson Airport Authority

The challenge of getting an airline flight to some destinations from Tucson may seem like trying to fly to the moon — and that just might be the way to look at it if you want it to get better. At least that was a take from John Jamotta, vice president of network planning for Southwest Airlines, who quoted President John F. Kennedy about the commitment he made in 1961 for the U.S. to land on the moon. “We choose to go to the moon in this decade and do the other things not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills,” Kennedy explained in a speech a year later. In a keynote speech Wednesday to attendees of the Western Airports Conference at the Westward Look Wyndham Grand Resort and Spa, Jamotta said the partnership paradigm between airlines and airports is changing and the successful ones will serve as models. He praised Tucson International Airport for the work that has done to make it an example of efficiency and referenced a meeting he had Tuesday with local leaders, telling them their challenge was to “make Tucson more successful.” Jamotta didn’t expand beyond that statement but later, in response to a question, he said that coming out of the recession, relationships between Southwest and airports is changing. He said it was outside his area but he named Dallas Love, Houston Hobby and Los Angeles International airports. At each of those airports, Southwest has forged a financial agreement to pay for airport improvements in exchange for other benefits. In another example, a real estate development company that donated land for a new airport near Panama City, Fla., agreed to cover potential losses for up to three years to get Southwest to launch service there in 2010. And at two South Carolina airports, Charleston and Greenville-Spartanburg, local officials came up with temporary waivers of landing fees, marketing money and agreeing to cover up to $150,000 of other

Tucson’s 4-star casino

John Jamotta talks about the relationship between airlines and airports at the Western Airports Conference at the Westward Look Wyndham Grand Resort and Spa on Tuesday (April 10).

costs to persuade Southwest to start service. Jamotta, who has been planning flight schedules for Southwest since 1987, said Tucson is an example of a city that was particularly hard hit by the dramatic drop in passengers using “short-haul” flights, generally 1½ hours or less. The industry lost 35 million short-haul flight customers between 2000 and 2011. Much of that was a direct result of security measures instituted after the 9/11 terrorist attacks in 2001 but Jamotta said there’s no real data showing what happened to those passengers. “I’m going to opine without data that many of those aren’t making the trips,” Jamotta said. “And those who must make them — business travelers — may be doing it by car.” The unanswered question, he said, is whether the airline industry can get those passengers back. A large number of those lost customers were in California where the state is pursuing plans to connect its major population centers with high-speed rail. As the air transport system evolves, “it’s not business as usual.” Jamotta harkened back to the earliest days of Southwest before 1971 when co-founder Herb Kelleher came up with a business plan to “democratize flying.” At the time, only 15 percent of the American public had ever flown and

Kelleher figured that, priced right, Southwest could be successful appealing to the other 85 percent. In building the model of a low cost carrier, Jamotta said Southwest developed its own culture. He said the airline is proud of the fact that it pays its employees well and in fact has the highest labor costs of any U.S. domestic airline. People who work at Southwest are invested in the airline and want it to be different and successful, he said. More than once, Jamotta said he didn’t want to be “provocative” about other airlines when he was speaking of Southwest. The conference, which was hosted by Sixel Consulting Group, was attended by representatives of nine other airlines — Alaska, American, Cape Air (also operates as United Express and Nantucket Airlines), Frontier, Great Lakes, Riverside Resort (which charters Sun Country flights to Laughlin, Nev.), SeaPort (operates in San Diego; Portland, Ore.; and Memphis), SkyWest and US Airways. Attendees also included representatives from 38 airports and a major portion of the three-day event that ended Thursday was devoted to 25-minute meetings between airport and airline officials. Jamotta called the relationship between airports and airlines a partnership and said it is getting to be more the case.

nology parks. After a national search, UA hired Allen in August 2012 to head Tech Launch Arizona. He had held a similar job at the University of Colorado. Allen oversees the affiliated Office of Technology Transfer, Office of Corporate and Business Relations and the University Research Parks. Allen reports directly to President Hart. UA Faculty Senate also has implement-

ed new policies that place an emphasis on technology transfer and commercialization. A new promotion and tenure criteria for faculty will take into account translational research, technology commercialization and industry and communitybased collaborations.

ROADMAP CONTINUED FROM PAGE 3

The university began to focus more heavily on technology transfer issues in the recent years. In late 2011, then UA-interim president Eugene Sander announced plans to revamp the university’s technology transfer department. Tech Launch Arizona was created as an umbrella organization to oversee the university’s technology commercialization, industry sponsored research and the tech-

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

The Pascua Yaqui Tribe’s Casino Del Sol Resort, 5655 W. Valencia Road, has been named a four-star hospitality establishment by Forbes Travel Guide, the first time a Tucson casino has garnered the prestigious award. The award comes as part of the guide’s 55th annual awards. The Ritz-Carlton, Dove Mountain, 15000 N. Secret Springs Drive, Marana, was the only other hotel in the Tucson region to make the four-star list. And only five resorts in the state made it.

The Tucson

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

All in 1 photo Imagine trying to assemble a reunion of superintendents of the past 30 years. In Tucson Unified School District that would be nine people — five in just the last 10 years. In Flowing Wells Unified School District that would be four people and they did get together, just last weekend and Insider got a photo. The superintendents are, from left, Nic Clement, who is retiring in June after being superintendent since 2004; J. Robert Hendricks, 1983 to 1996; John Pedicone, 1998-2004; and Phil Corkill, 19961998. There’s only one other school district in the Tucson region where a reunion photo might include fewer people: Vail where Calvin Baker hold’s region longevity record, 25 years at the helm.

6 APRIL 12, 2013

INSIDE TUCSON BUSINESS

NEWS Securaplane breaks ground on new Oro Valley facility

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.

Chapter 11 Business reorganization Quanta Technologies LLC, 7620 N. Hartman Lane, Suite 186, Marana. Principal: James Christopher Jones, member manager. Estimated assets: $50,000 or less. Estimated liabilities: More than $500,000 to $1 million. Largest creditor(s): Schedule not fied. Case No. 4:13-bk-05391 filed April 7. Law firm: C.R. Hyde Jeegarkumar B. Amin and Trupti J. Amin, 3031 S. Sixth Ave. Principal: Jeegarkumar B. Amin and Trupti J. Amin, joint debtors. Estimated assets: $50,000 or less. Estimated liabilities: More than $50,000 to $100,000. Largest creditor(s): Schedule not fied. Case No. 4:13bk-05472 filed April 8. Law firm: Eric Slocum Sparks

FORECLOSURE NOTICES Defsco Limited LLC Vacant land, approximately 4.96 acres near 7800 E. Valencia Road 85747 Tax parcel: 141-07-0110 Original Principal: $220,000.00 Beneficiary: Valencia Property Limited LLC Auction time and date: 11 a.m. July 10, 2013 Trustee: Ethan Steele, 145 S. Sixth Ave. Integrity Development LLC 11278 N. Canada Creek Drive, Oro Valley 85737 Tax parcel: 224-06-4170 Original Principal: $125,000.00 Beneficiary: Robert C. Middleton, Tucson, and Rosemary Middleton, Oro Valley Auction time and date: 11:30 a.m. July 11, 2013 Trustee: Jeffrey S. Katz, 2823 E. Speedway, Suite 201 Absolutely Waterproof LLC 3431 E. Cody St., 85716 Tax parcel: 122-17-0110 Original Principal: $200,000.00 Beneficiary: Eber Charles Slaght, Burbank, Calif. Auction time and date: 10 a.m. July 2, 2013 Trustee: Craig Kaufman, Quarles & Brady, 1 S. Church Ave., Suite 1700

LIENS

Federal tax liens Tenorio Escobar Inc., 4159 NW 90th Ave., Apt. 202, Coral Springs, Fla. Amount owed: $6,699.79. Daniel J. Rylander PC, 2701 E. Speedway. Amount owed: $4,655.84. Gateway West Realty Inc., 2151 W. Felicia Place. Amount owed: $5,458.66. Cattletown Steak House and John R. Kocis, 3141 E. Drexel Road. Amount owed: $12,650.23. Simmons Home Design Inc., 2201 N. Camino Principal, Suite 101. Amount owed: $8,605.35. W.J. Lang Construction Inc., PO Box 89459, 85752 (7641 N. Business Park Drive, Marana). Amount owed: $13,798.18. Kiﬁk LLC, 744 E. Broadway. Amount owed: $13,296.83. J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $4,589.26. Efﬁcient Concrete Inc., 4921 W. Paseo De Las Colinas. Amount owed: $7,995.00. Saguaro Canyon Ranch Development Corp., 4422 N. Camino Ferreo. Amount owed: $3,984.56. Checkered Flag Construction LLC and Armando R. Rico, 2292 W. Ruthrauff Road, Unit 2. Amount owed: $3,015.23. Western Mapping Company, 3323 N. Campbell Ave. Amount owed: $8,059.96. Quanta Technologies and Christopher

Jones, 7620 N. Hartman Lane, Suite 118, Marana. Amount owed: $1,137.00. Dancing Bubbles and Handmade Arts Inc., 2004 E. Irvington Road 193. Amount owed: $4,295.86.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) H&L Custom Painting LLC, PO Box 11271, 85734. Amount owed: $1,081.20. Carson Concrete Specialists Inc., PO Box 90685, 85752 (3475 N. Dodge Blvd.). Amount owed: $1,787.00. Smileworks and Vahid N. Hamidi DDS PC, 801 N. Wilmot Road #B1. Amount owed: $1,724.16. Savvy Salon Inc., 7355 S. Houghton Road, Suite 111. Amount owed: $1,527.67. Majestic Cleaning Service LLC, 2321 S. Double O Place. Amount owed: $1,094.89. Saigon Restaurant and Tatsu Sushi Co., 7332 N. Oracle Road. Amount owed: $1,554.17. Charlie’s Drive In Liquor and Bhagat LLC, 5451 E. Pima St. Amount owed: $1,154.56.

Mechanics liens (Security interest liens of $1,000 or more ﬁled by those who have supplied labor or materials for property improvements.) Norman S. Wright Co. Manufacturers Representatives, 2121 E. Magnolia St., Phoenix, against DND Neffson Co., c/o General Growth Properties, PO Box 6117905, Chicago 60661; CRGC Tucson Toby Keith’s I Love This Bar, 310 Johnny Bench Drive, Oklahoma City, Okla.; Hoyt’s Heating & Air Conditioning, PO Box 14435, Phoenix 85063; and DC Builders & Development LLC, 6263 N. Scottsdale Road, Suite 145, Scottsdale. Property: 4500 N. Oracle Road, Toby Keith’s I Love This Bar at Tucson Mall. Amount owed: $60,463.50. Tucson Flooring Concepts, doing business as Aztec Flooring, 3990 S. Evans Blvd., against Woods E A Properties LLC, 2525 N. Country Club Road; Southwest University of Visual Arts, 2525 N. Country Club Road; and Epstein Construction LLC, 990 E. 17th St., Suite 106. Property: 2525 N. Country Club Road. Amount owed: $8,545.55.

Release of federal liens Tucson Rehabilitation Medicine Associates PC, 1921 W. Hospital Drive Family Air LLC and James Beard, 2021 E. 12th St. Sierra Mining & Crushing LLC and Shane R. Madsen, PO Box 22110, 85734 Middle Link Inc., and Keith Collea, 236 E. 30th St. Shute’s Remodeling LLC and Timothy Sean Shute, 2226 E. Winsett St. Cowboy’s Sweetheart LLC and Ellen Stateler, 4729 E. Sunrise Drive 267 Valor Hospicecare LLC and Grant A. Rowe, 1860 E. River Road, Suite 200 M&S Hospitality LLC and Marvin R. Dodd, 5991 S. Placita Picacho Taqueria Porﬁs, 3553 S. 12th Ave. August Enterprises Inc., 2502 E. Granford Safa Shell and Sajid M. Rana, 5502 E. 22nd St. Arizona Hydro-jetting & Plumbing Inc., 7351 E. Beverly Drive Nordbrock Family Limited Partnership and Evelyn R. Nordbrock, 6642 E. Calle De San Alberto Stormwater Pollution Erosion & Sediment Control Consulting LLC and Howard Myers, 4420 E. Coronado Ridge Lane, Catalina W Boutique LLC and Duncan Sydney, 4340 N. Campbell Ave., Suite 185 PACE Electrical Construction Inc., 515 E. 24th St. Cappsco International Corp., 805 S. Park Ave.

Securaplane Technologies

BANKRUPTCIES

Securaplane officials and employees at the March 29 groundbreaking for the company’s new facility in Oro Valley’s Innovation Park.

By Alan M. Petrillo Inside Tucson Business With a growing business supplying avionics products for business, commercial and military aircraft, Securaplane Technologies Inc., has broken ground in Oro Valley’s Innovation Park on a 55,000-squarefoot building it expects to occupy by the end of this year. At its new location near the northeast corner of Tangerine Road and Innovation Park Drive Securaplane will be near pharmaceutical firms Sanofi and Roche Group’s Ventana Medical Systems, said Oro Valley Mayor Satish Hiremath. “Securaplane is a welcome addition to Innovation Park, which is fast-becoming a hub for bioscience and hi-tech industries,” Hiremath said. “We’re also proud to announce that Securaplane will be the first business to benefit from the town’s newlyestablished Economic Expansion Zone.” The Oro Valley Town Council approved the zone last October as an overlay district that streamlines processes and reduces the time required to establish or expand a business in the area. Establishment of the zone was endorsed by the Greater Oro Valley Chamber of Commerce, Hiremath said. “The Economic Expansion Zone allows a very aggressive, streamlined process to build large scale buildings of tens of thousands of square feet within a year to 18-month time frame,” Hiremath said. “In Securaplane’s case, this is a huge building and they would like to get it completed by the end of this year.” Securaplane currently employs 160 people at its location in Foothills Business Park in Oro Valley. The company specializes in energy storage, power electronics, airborne cameras, cellular security and wireless con-

trol systems. Securaplane found istelf under some extra government scrutiny this year as the maker of the charging system for lithium-ion batteries used aboard Boeing 787 Dreamliners. The Federal Aviation Administration grounded the airliners after several reported instances of the batteries overheating and two cases in which the batteries caught fire. After tests, FAA investigators determined the charging system was not the issue. As for the company’s plans, which were initially announced last year, continued strong market growth made it necessary for Securaplane to increase the size of its operations to support production programs for business jet, air transport, rotorcraft and military customers. “This is an exciting time for us. The aviation industry is witnessing a period of prolonged, favorable growth, with Securaplane beating industry trends,” said Shubhayu Chakraborty, president of Securaplane. “The Town of Oro Valley has fostered a spirit of partnership with Securaplane from day one, so I am confident that we will be able to execute this project flawlessly.” Securaplane expects 40 percent of the new building space will be dedicated to operations and production, 40 percent for engineering and laboratory uses, and 20 percent to sales, finance and administration. Over the next five years the company expects to have nearly 215 employees at the Innovation Park location. Securaplane is an operating subsidiary of Meggitt PLC, headquartered at Bournemouth Airport, United Kingdom. The company is known for its specialized extreme environment engineering, and is a recognized leader in aerospace, defense and energy markets.

InsideTucsonBusiness.com

APRIL 12, 2013

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APRIL 27

W FOLLO DER A E L E TH

BUILDERâ&#x20AC;&#x2122;S LIQUIDATION 10:00am - Homes Preview at 9:00am AUCTION 1141 W Caminito Mio, Sahuarita, AZ 85629

4 68

NEW Builder Model Retirement Community Homes Vacant Residential Lots ready to build houses

. $!%& & (!& # $( %##)$!(, +!( $)# &%)' # $!(! ' . )'( #!$)( ' '%)( % ) '%$ . % ( % " %# ' ' ""!$ '%")( +!( & ' &* . % "%(' ' ""!$ '%")( +!( $% & ' &* . "" & /$ $ !$ * !" " - "" %& !$ %&# (!%$

800-895-9061 www.UCSWAuctionServices.com Anthony J Kesman, Broker : Anthony@UCSWAuctionServices.com : Lic# BR643951000

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InsideTucsonBusiness.com

APRIL 12, 2013

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AUCTION

*(47),33 *30--:

May 14

;\JZVU (YPaVUH 4PUPT\T IPK VM

4PSSPVU Looking for More Sales?

3+ ACRE HOMESITE 3+ ACRE HOMESITE 6+ ACRE HOMESITE and ESTATE

3+ ACRE HOMESITE

The sixth annual AZBIZCON, Southern Arizonaâ&#x20AC;&#x2122;s largest Construction Business Expo is May 15th from 2:00 PM to 6:00 PM at the Hotel Tucson. If your company sells to the construction industry then this is the EXPO to be an exhibitor!

3+ ACRE HOMESITE

The Expo features outside displays of Heavy Equipment, Trucks & Vans, and over a 100 inside exhibitors of Material Suppliers and Companies that market Business Services. Donâ&#x20AC;&#x2122;t miss out on this opportunity to be an exhibitor. Presented by the Alliance of Construction Trades. For more details call ACT 520-624-3002 or visit www.azbizcon.com.

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10 APRIL 12, 2013

INSIDE TUCSON BUSINESS

MEDIA

KVOA gets ‘channel in box’ to launch 2nd digital signal By David Hatfield Inside Tucson Business There’s no bigger event for broadcasters than the National Association of Broadcasters show, which drew more than 90,000 attendees to Las Vegas this week, and this year drew some attention to Tucson’s KVOA 4 with word the station is launching a secondary channel called Cozi TV by the beginning of June. The fact that KVOA is launching a second channel isn’t news — other Tucson stations already have them. What caused KVOA to get the attention is that it has acquired a Versio “channel-in-a-box” system made by Harris Broadcast. It turns out “channel-in-a-box” has been a broadcast industry goal recently and the Versio has everything a station should need to launch a new broadcast-quality channel: automated master control, digital server and graphics all combined with the software necessary to keep it running. While the gadget may be the thing that has the broadcast geeks’ attention, Tucsonans are probably more interested in what will be on the new channel. Cozi TV was developed by NBC for its owned stations and has been rolled out to other affiliates over the past three months. Its programming is a mix of movies and classic TV shows such as “The Six Million Dollar Man,” “I Spy,” “Charlie’s Angels,” “Highway to Heaven” and others, most of which were produced through Universal Studios, now part of NBCUniversal. Additionally, the channel has some original programming produced by NBC stations. Once it launches, Tucson viewers will see Cozi TV on KVOA’s digital channel 4.2. Cox Communications has also set aside channel 84 to carry it.

Back in broadcasting Before he was a candidate for the state Legislature last November and before he was a consultant to the Regional Transportation Authority, David Joseph was in media as a broadcaster and now he’s back. On April 2, the Federal Communications Commission approved his company’s acquisition of TV station WPXT, the CW and Me TV affiliates in Portland, Maine. It’s a complicated deal — these days, what isn’t? — in which Joseph’s Ironwood Communications is acquiring and then spinning off the real estate that includes the station’s studios and offices. Meanwhile, another station in Portland, WPME, the My Network TV affiliate, is also being sold separately. The two Maine stations have been operating together under a shared services agreement overseen by WPXT and that will continue.

According to FCC filings, Joseph’s company is buying WPXT for $1.525 million and spinning off the real estate for $1.3 million. The second station is being acquired for $75,000 with Joseph retaining the right to acquire it later. The deal is expected to close by the end of this month. Prior to being general manager at KOLD from December 1993 to May 1995, Joseph was director of sales for KTTU 18 and a pair of stations in Little Rock, Ark., that were all owned by Clear Channel Communications. Since his KOLD days he has kept his ties to broadcasting as president and owner of the CBS TV affiliate in Yuma and CEO of a company that owned three stations, the ABC, Fox and My Network TV affiliaites serving Columbia-Jefferson City, Mo. Joseph says he will continue to live in Tucson, though he says he’s also learning there are no easy connecting flights between here and Portland, Maine.

Names in news Ken Kwilosz, director of sales for Lotus Corp.’s four Tucson radio stations, is now also the company’s general sales manager overseeing all Arizona operations, meaning the company’s TV station operations in Phoenix are now on his plate. Prior to his arrival in Tucson in January 2011, Kwilosz had been the general manager of the Phoenix TV station KPHE, which uses its digital signal to broadcast four channels of programming, two in Spanish and two in English. Lotus’ Tucson radio stations are KLPX 96.1-FM, KFMA 92.1-FM, La Caliente KCMT 102.1-FM and ESPN Deportes KTKT 990-AM. Tim Richards, who spent 7½ years as operations manager for Clear Channel Tucson’s radio stations before heading up to Clear Channel Phoenix two years ago, was bounced last month but didn’t stay on the beach long. He walked across the street in Phoenix and has landed a job as program director for CBS-owned country station KMLE 107.9-FM. At Clear Channel Phoenix Richards had been show director for the “Johnjay and Rich Show” and in October was made program director of top 40 station KZZP.

Spring football on TV The promise of the Pac 12 network when it was launched last August was that it would give us more than we’ve ever seen before of the conference’s sports events. One example of that happens Saturday when the channel will show consecutive spring football games, all live from 9:30 a.m. to 5 p.m. The University of Arizona Wildcats are scheduled for 1 p.m.

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

InsideTucsonBusiness.com

APRIL 12, 2013

GOOD BUSINESS PR CORNER

Look before you leap - context can make or break your news Say you’re launching a new series of ads to better describe your products and services, or you’re ready to tell the world about a new community partnership your company is undertaking. You’ve spent weeks getting the announcement just right and you’re, understandably, excited. But the launch falls flat. It seems nobody is listening and, if they are, it feels as though they just don’t care. What did you do wrong? The short answer is nothing. Because it’s not what you DID, but what you DIDN’T do that caused the problem. What you didn’t do is take a good hard look at what’s happening in your industry, the community, the nation and the world at the time of your launch and ask yourself, “How are these seemingly unrelated events going to impact me and the program or message I’m ready to release into this environment?” In other words, what is the context that will surround my release of information? Is this week’s media climate favorable or not? Is what is going on around us right now sufficiently important to most people so that they will ignore my news in favor of following a breaking story or a compelling trend report, or even the results of “America’s Got Talent”? And something else you didn’t do is think about just how your verbal and visual messaging will be perceived in light of those events. Could there be unintended consequences as a result of a real or perceived link to the news? How about a couple of theoretical examples to illustrate my point: A charity pins its hopes for success in an upcoming fundraising drive on the involvement of a celebrity spokesperson. The star’s manager paints a bright picture, so it doesn’t occur to staff members at the charity to check out the gossip sheets, where troubles in the star’s personal life are looming large. On the day after your launch, the celeb checks himself into rehab. Whap! The public’s interest is now focused on the guy’s “personal tragedy” and your own poignant message gets lost in the shuffle. This could’ve, should’ve, would’ve been avoided if only the context and consequences had been as important as the content during the planning. Or, a certain brand of high-end vehicles has been in the news because of recent recalls. Your company sells high quality automotive aftermarket accessories and, without thinking things through, you feature those accessories in your advertising as they appear when installed in or on a

very classy car. It’s looking very, very good! However, if that car and the recalled vehicles are one and the same, no matter how great your products look in the ad, no matter how beautiful the JODI HORTON car, your target audience — car lovers — will associate the product with the defects and your effort is likely to fall on its face. The takeaway here is that even if your message is powerful, your product is cutting edge and you really worked hard to tell your tale in a way most people can understand and relate to, the events of the day got in your way — and that didn’t have to happen. To compound the angst, it’s unlikely you will get another shot at this because you’ve lost the power of a great first impression. Sitting comfortably at your desk reading Inside Tucson Business, you’re probably thinking these mistakes are self-evident and any reasonable person would know not to do things that way. However, I can assure you missteps in identifying context and consequences occur every day, and you will see the results around you if you start to look. I’ll leave you with this thought: A good community relations program, or a savvy marketing move or an award-winning ad doesn’t exist in a vacuum. The success of these business events and, in turn, the success of your business depends in large part upon whether you work hard to maintain a 360-degree view of your and your customers’ world and whether you examine the context and the consequences of your actions as carefully as you choose the look and feel of your collateral materials. Do it — and you’ll be glad you did!

Contact Jodi Horton, founder and president of Ideas @ Work Inc., at (520) 740-1749. Horton is accredited in public relations (APR) and a member of the Public Relations Society of America’s College of Fellows. This monthly column is prepared by members of the PRSA Southern Arizona Chapter.

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SMALL BUSINESS SMALL BUSINESS

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Collaboration actually works and is essential for small businesses One of the character traits of successful business professionals is that competitive nature where winning is measured by market share and outperforming the competition. We learn to be competitive at an early age by playing sports and getting good grades in school. That prepared us for a future in business. Perhaps we were accused of not always playing nice in the sandbox, but winning was as important then as it is in business today. Collaboration was something that was introduced to us later by a mentor, boss or business coach. In the last decade it seems as if collaboration has become more as a buzzword than a strategy or good business practice. Previously, collaboration was an internal practice to help a team better communicate and perform at a higher level. Collaboration is now being viewed more widely and from an external perspective as well. Collaboration has taken on a new meaning and is becoming essential in today’s business climate, especially for small businesses. We are seeing a shift towards businesses seeking collaborative opportunities to work with others, including their own competitors. More often than not, this allows small businesses to better position themselves to compete with their larger, national counterparts. This is quite the change from the competitive nature we developed early on that would have discouraged collaborating with others, especially competitors. So what would motivate competitors to come together and share resources? Let’s begin with survival. In the last decade, there has been an increase in size and clout of professional trade associations in Arizona. The primary motivation has been political. Many come together when they see their industry under attack by proposed increased regulation that would cut into their thin profit margins and possibly put them out of business. Instead of advocating individually for their businesses, leaders bring more clout by presenting a unified front and advocating for their industry. They might share the cost of a lobbyist and new research to counter the arguments of their opponents. Another motivation is purchasing power. And this is huge. If your profession is governed by a licensing body, continuous training might be necessary to maintain a license. Instead of traveling out of

state to receive training, competitors are pooling their resources and bringing the training in, reducing travel costs and time away from their business. JERRY BUSTAMANTE We have all seen examples of tenants in retail centers increase their purchasing power by combining their marketing dollars to promote their center as a destination. There may even be competing businesses in the same center, but they understand the value and long-term benefit of increased traffic. This might include sharing the cost of market research to determine which advertising options help them get the most for their marketing dollars. Finally, there is the incentive of community building, which is perhaps where we have seen the greatest benefits of collaboration. There is no better example of the power of collaboration than what is happening in downtown Tucson, despite a lack of leadership from the public sector. Downtown Tucson is once again thriving and is getting better because business owners and customers alike have taken ownership of it and committed to rebuilding it. Individuals have stepped up to provide exceptional leadership, but no one person or group could do it alone. The collaborative efforts of many have been the driving force. Today’s business climate is fast-paced and perpetually changing. Collaboration is no longer a buzzword but a proven business practice that is essential to all of us and delivers results.

Jerry Bustamante is senior vice president of public policy and oversees the Southern Arizona office of the Arizona Small Business Association, 4811 E. Grant Road, Suite 262, in Crossroads Festival, (520) 327-0222.

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APRIL 12, 2013 SPECIAL ADVERTISING SUPPLEMENT

Congratulations 2013 Celebrating Innovation in the Workplace Award Winners To the 2013 Celebrating Innovation in the Workplace Award Winners: I would like to add my congratulations and appreciation to each one of the winners of the Innovation Awards program for the work they do each day. Their efforts and professional accomplishments not only impact their organization and the community, but enhance the profile of HR and professional business communities in Southern Arizona. This level of professional effort and personal commitment attracts and retains both businesses and professionals to Southern Arizona. Innovation is a word we hear a lot these days. But more than a word, it reflects a way of thinking and addressing the daily challenges we face. Not just doing the work, or fixing the problem, but redesigning, advancing and finding a new way of doing things. It’s easier to keep doing things the same way, not to take the extra effort to change a process, a program or activities in your organization. But these individuals and organization did make that extra effort, that commitment to change and make an impact. The Celebrating Innovation in the Workplace program was structured to identify

Sandra Riggins and Jennifer DeLaix

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and recognize these people who work towards the future and impact the community. She joined me in recognizing and thanking Jennifer DeLaix and Sandra Riggins for their work as co-chairs of the CIW committee. As SHRM-GT President this year, I have the honor of working with a board of innovative contributors. Not satisfied with the same recognition program, they recognized that innovation is the key to the future and developed a program that identified and recognized individuals and organization that took the leap to make a difference through innovative leadership, technology advances, diversity and inclusion programs, leadership and community impact. To the winners, I hope the weeks since the event have been a time for you to reflect and enjoy the recognition that you received on that day and from your colleagues. Thank you for the work you do, and the opportunity we have had to share your work with the greater Tucson community. Ann Berkman, PHR; President

Ann Berkman

SHRM of Greater Tucson in conjunction with Lewis and Roca, LLP Present

2013 Annual Employment Law Update Seminar Tuesday, April 16, 2013 9:00 am - 4:00 pm (Registration begins at 8:15 am) Doubletree Reid Park, 445 S Alvernon, Tucson, AZ 85711

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How to Register: Online: www.shrmgt.org Phone: (520)299-6787 Cost for SHRM members: $85 Cost for Non-SHRM members $160

• Update on Employment-Related Laws/Statutes • Workplace Violence Prevention Strategies (presented by Deb Carr of Jorgensen Brooks Group) • Top 10 Issues in Employee Benefits • Avoiding Pitfalls in the Expanding Area of Gender Norms • The ADEA, Systematic Discrimination and other EEOC-related Hot Topics

Registration includes: Continental Breakfast, Lunch and workshop materials. Must be registered by 4/12/13

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14 APRIL 12, 2013

INSIDE TUCSON BUSINESS SPECIAL ADVERTISING SUPPLEMENT

INNOVATION – bringing something new to the table is what Human Resources is all about. Creating a culture of employee engagement and driving profitability require us to challenge ourselves and our colleagues. Each of our Innovation Award winners do this in their organizations every day. Their stories are inspiring. SHRM-GT is excited to announce our 2013 Innovation Award winners:

Individual Innovation Award Recipients: SANDRA ABBEY, with the Tucson Airport Authority, and her team created and Organizational Development Function in the Human Resources department. This new HR focus is in alignment with TAA’s guiding principles, Commitment to People. By reevaluating workflows and working smarter, the TAA HR department was able to prioritize leadership and organizational development. In partnership with Pima Community College, TAA was able to create a Leadership Academy as well as initiating an airport specific certification study group. Sandra and her team are currently completing the development of a new mentoring program. Sandra is very proud of the HR team’s accomplishments, and their contributions in implementing the Tucson Airport Authority mission, vision, and guiding principles. Sandra received the Innovation Award for the innovation practices she implemented with her team at TAA. DAVID DOWLING, of IBM, is a volunteer facilitator for the SHRM-GT Study Group which assists local professionals obtain HR Certification. He holds both PHR and GPHR certification which lends to his credibility for the sessions that he facilitates. He gives the study group practical examples of how to study for the exam which leads to a high pass rate. He provides candid feedback to the group reminding them that their end goal is to pass the exam. He encourages networking amongst the group especially those that are seeking employment and has connected with most people on Linked-In to help build their professional networks. Through David’s encouragement and that of the other SHRM-GT volunteer facilitators, the SHRM-GT Study Group has a pass rate above the national average. David received the Innovation Award for his dedication to

the HR profession and the community leadership he provides. KATE GOLDMAN, from The Offshore Group, has a passion for improving awareness and understanding of diversity and inclusion for her company and her community. She has created and shared with her organization and other organizations in the community various training programs where participants: a. Understand more deeply the role Diversity plays in our workplace/community; b. Identify why and where their views have been shaped, simultaneously increasing sensitivity to others, and c. Reinforce diversity and inclusion as a critical component of a healthy workplace/community environment. Kate has also coached various members of management and staff on how to avoid micro aggressions during interviews and when hiring. There has been a dramatic drop in complaints regarding micro aggressions since she delivered training. The Innovation Award was granted to Kate for her accomplishments in raising awareness of diversity and inclusion topics. DIANE-MARIE LANDSINGER of Pima Community College says “The transition from military to civilian and student to worker can be a daunting task, and the commitment of PCC to the community and volunteer partnerships is key to our success.” DianeMarie, assistant program manager at the Downtown Campus, embodies the networking spirit and cosponsors community events that connect non-profit groups with the general community and students. For example, Diane-Marie currently partners with La Frontera Arizona and Rally Point Tucson to sponsor a volunteer program - peer-to-peer advocacy train-

ing to assist in the identification of mental health and suicide prevention issues. Diane-Marie’s continued commitment to developing best practices for reaching student veterans to ensure success in school and the workforce is why she was awarded the Innovation Award. HANNAH LOZON, of the University of Arizona Residence Life, has focused her career on pushing students, colleagues and departments on thinking about privilege and oppression in their lives and their role in dismantling those systems. In her role, Hannah has implemented a bias response protocol for the University of Arizona’s 23 residence halls; began a 16 hour training series on oppression, developed a Intergroup Dialogue program that brings students together for a credit bearing class to learn dialogue skills across difference; overhauled our staff resources “a video project” and created a program facilitation guide database which is used at campuses across the nation. For her work on diversity and inclusion, Hannah received the Innovation Award. KIM MURRAY & BRENDA SCHEMEL with Universal Avionics Systems Corporation, provide opportunities for their employees to have active roles in the community through participating in charitable events such as community food drives and toy drives, as well as business partnerships with local schools. Universal Avionics partnerships with local educational entities not only provide benefits to their existing employees, but also allow them to help equip students with knowledge about our business and industry who may become future employees to our organization. Kim and Brenda share this Innovation Award for creating programs that benefit the

community while creating a recruiting pipeline. STEPHANIE PELLA, from the Town of Oro Valley, developed an approach to provide an assessment to determine how to create an innovative and engaging organization. Stephanie implemented an employee satisfaction survey which was transparent to alleviate misperceptions and build trust in the organization. Since the employee satisfaction survey was completed, employees have realized a cost of living increase, additional medical benefit options, revised grievance and discipline procedures providing consistency and fairness, new performance evaluation rating scale and enriched methods of communication. Stephanie received this Innovation Award for understanding and utilizing feedback to implement real and meaningful programs. HILDA SLANINA with Xeridiem made it her mission to help bridge Xeridiem’s two culture gap by promoting and integrating the company core values; Integrity, Respect, Optimize, Accountability and Fun, into all aspects of the business. She incorporating them into their interview questions, added them to the performance appraisals, and had them displayed in every conference room and break room, every employee, visitor or customer knows those values are the foundation to teamwork and success. Hilda implemented lunch and learn programs for employees to gain training on various topics including people skills and project management. Through this program and others, Hilda was able to prove that the core values are the foundation that helped bridge the gap that was once there. Hilda received this Innovation Award for her innovative culture change initiatives.

Company Innovation Award Recipients: ARIZONA’S GENERATION & TRANSMISSION COOPERATIVES’ HR department volunteers at local high schools to provide “Launch into Life”, an active, hands-on learning activity which gives teens the opportunity to explore career opportunities and make lifestyle and budget choices similar to those adults face on a daily basis. The four highlights of the program are Money Management, Soft Skills for Employment, Skill Assessments, and Pathways to Good Jobs in the community. Arizona’s Generation & Transmission Cooperatives’ also has an “Intro to Utility” college course. They have hired student from both programs, helping their community as well as getting well qualified candidates. These program foster a sense of pride for their employees and their community. Congratulations on your innovative programs and your Innovation Award.

cal charities. As part of supporting their community, Cox supports a variety of diversity measures. To Cox diversity means understanding the perspectives, needs and priorities of all people and working to include and represent them in our business. In Tucson, Cox Communications engages the community by promoting and actively recruiting talent for open positions in the Tucson area. They do this by attending local job fairs and community outreach events. Their efforts are highly focused on increasing diversity in the workforce. Evidence of their success is apparent by their increasing attendance at diversity focused events such as Hiring Our Heroes Job Fair and Disability Rehabilitation Employment Awareness Month Job Fair. Cox Communications’ strong focus on community is the reason they received the 2012 Innovation Award.

COX COMMUNICATIONS has a strong sense of Community and focuses many campaigns on giving back to Tucson. Through their charitable giving campaigns, employees give money and time to lo-

By giving their employees opportunities to give back to their communities, LAZYDAYS is creating a culture of engagement and a strong sense of affiliation. Lazydays employees have volunteered to perform

AZ TRANSMISSION

COX COMMUNICATIONS

renovations, maintenance, painting, and cleaning of facilities of Open Inn and Emerge! Included were roof resealing, exterior painting, ceiling tile replacement, furniture reconditioning, office furniture installation, and outdoor canopy installation. In addition, the Foundation provided back-to-school gift certificates and holiday gift certificates to the three partner organizations, has sponsored the Pima County Sheriff Department’s program offering free child car seats to those in need. These programs allow employees to contribute to their communities. Lazydays received the 2012 Innovation Award for their commitment to their employees and our community. SYNCARDIA, the world’s only FDA approved manufacturer of the Total Artificial Heart understands the importance of hiring smart – the right people with the right skills. Throughout 2012, SynCardia gave tours and presentations to local high school and college students to encourage careers in the biotech field, support workforce needs and take advantage of local talent. As a result, SynCardia employed three interns SYNCARDIA

from the University of Arizona and one intern from ASU. This “grow your own” strategy is paying off for Syncardia, while encouraging local youth to consider careers in the biotech industry. Congratulations on your Innovation Award. TUCSON AIRPORT AUTHORITY’S innovative onboarding process includes a brand new employee orientation program with process to ensure the following - Before the first day (e.g., Department secures space and equipment, develop goals), First day Onboarding (e.g., required forms and documents, Employee Handbook- Corporate Philosophy, Benefits, Schedule, Employment Practices, Conduct Standards, Safety, Department Orientation (Checklist provided to ensure key topics are addressed) and within 90 Days: Two Day Orientation – a whirlwind tour of the Tucson Airport Authority (TAA). The feedback on this program and other new programs has been excellent and has had a unifying impact on the organization. For these efforts, TAA received the Innovation Award. TUCSON AIRPORT

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APRIL 12, 2013 SPECIAL ADVERTISING SUPPLEMENT

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16 APRIL 12, 2013

INSIDE TUCSON BUSINESS SPECIAL ADVERTISING SUPPLEMENT

SHRM GT OFFICERS AND DIRECTORS: Ann Berkman, PHR; President Garrett Kowalewsk; President Elect/Membership Chair Trish Kordas; Vice President/Programs & HRCI Chair Chris Dominiak, PHR; Secretary/Treasurer Jennifer de Laix, SPHR; Immediate Past President/Celebrating Innovations Co-Chair Sandra Riggins, PHR; Celebrating Innovations Co-Chair Lisa Rains, PHR; Legislative Co-Chair Bonnie Mattes, SPHR; Legislative Co-Chair Jill O’Rourke, PHR; Professional Development Chair Mary Keysor, PHR; Future Workforce Development Chair Janet Rico Uhrig, SPHR; Diversity & Inclusion Chair Keli Brinke; Leadership Development Chair

Congratulations INDIVIDUAL WINNERS

2013 CELEBRATING INNOVATION IN THE WORKPLACE COMMITTEE MEMBERS: Jennifer de Laix, co-chair Sandra Riggins, co-chair Jeanie Merideth, Executive Director Jill A’Hearn Ann Berkman Kitty Bogy Rhonda Chaney Danielle Duarte Rebecca Fuentes Trish Kordas Billie Moyle Janet Rico Uhrig

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APRIL 12, 2013

TOURISM TOURISM IN TUCSON

The secret to keeping visitors coming back: local businesses Last year, we welcomed more than 37 million travelers from all over the globe to the Grand Canyon State. It is estimated those visitors spent about $50 million every single day in Arizona. That is a huge boost to our economy, as tourism is the second largest industry in Arizona. If you were to ask tourists where they are spending these dollars, they would surely tell you they are patronizing local businesses, neighborhood restaurants and bars, independent hotels and bed-and-breakfasts, local boutiques and retailers, nearby theaters and museums, plus the other unique experiences Arizona and the Tucson region have to offer. These tourists are not traveling all the way to Arizona to experience the exact same types of stores they have access to at home. No, they are coming here to have an Arizona experience. The quality of any traveler’s trip depends directly on the businesses they choose to visit for dining, lodging, touring, and entertainment. These travelers want to stroll down Fourth Avenue and pop in the eclectic stores for a unique souvenir to take home. They want to build memories with their families at institutions like the Children’s Museum Tucson and the Mini Time Machine Museum of Miniatures. They want to spend the evening listening to live music at Club Congress or at the Tucson Symphony Orchestra. These are the experiences visitors will seek out, and what our local businesses gladly offer. Local businesses offer travelers a personal experience as well as a glimpse into a new and different culture. There is no other place in the world like Tucson, Arizona. It is a city with a small town feel where shop owners are also baseball coaches and musicians. It has distinct neighborhoods reflecting the city’s long history; its arts community; its MexicanAmerican and Native-American culture; its emerging tech community and so much more. Local businesses such as the Mexican folk art shop, the artist-run boutique, and the urban bistro sourcing local produce bring that uniqueness to visitors helping them become familiar with how special Arizona is. Travelers can choose to experience the college town atmosphere at the bars and restaurants surrounding the University of Arizona, or they can delve into the heritage of the region by touring the adapted historic buildings that are now home to local businesses. Finally, local businesses keep visitors coming back for more. Whether it is the to-die-for mole from Little Cafe Poca Cosa,

National Travel and Tourism Week is May 4-12.

or that adorable room at the Adobe Rose Inn, these exclusively Arizona experiences cannot be found anywhere else and will have travelers returning year after year. DEANNA CHEVAS It’s the return visitor who keeps our communities vital because of the dollars recirculating throughout the local economy creating Tucson jobs and supporting local schools. Local businesses are thus a significant part of any traveler’s excursion. So those of us who are lucky enough to live near these fantastic shops, restaurants, museums, tour providers, and others should do our part to support them while at home. By supporting local businesses at home, up to four times

more money stays and circulates through the local economy to further support these businesses and the community overall. In turn, these vibrant communities and strong local businesses will keep travelers happy, ultimately turning them into return guests, bringing more money in to support Tucson and Arizona. National Travel and Tourism Week, the annual salute to travel and tourism in America, is May 4-12. Take time to reflect on the local businesses that are your favorites and that make Tucson such a great destination for travelers. Then the next time you see an out-of-towner, share your “locals-only” secrets with him or her. Or check out and share a Tucson Small Wonders Map, available at the Tucson Visitors Center, across the state and online at LocalFirstAZ.com. Chances are you will help create a memorable experience for that visitor who will want to return. National Travel and Tourism Week is

also a great time to consider exploring other parts of our home state. From the wine trails of Sonoita, Willcox, and the Verde Valley to antiquing in Globe and Bisbee, Arizona is full of charming cities and towns that have many unique experiences to offer. Consider a “staycation” in Arizona for your next family vacation, anniversary celebration, or weekend getaway, as you will be pleasantly surprised by what our state has to offer.

Deanna Chevas, Tucson Manager for Local First Arizona, a non-profit working to strengthen communities and local economies through supporting, maintaining, and celebrating locally owned businesses throughout the state. Its website is localfirstaz.com .

18 APRIL 12, 2013

INSIDE TUCSON BUSINESS

W FOLLO ADER THE LE

BRIEFS GET ON THE LIST

Next up: Defense contractors

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Research is underway gathering data for Inside Tucson Business’ 2014 Book of Lists. Upcoming lists are: • April 19: Architectural firms, Interior design firms, Engineering firms • April 26: Landscape architects, Swimming pool builders • May 3: Defense contractors • May 10: Electrical contractors, Mechanical contractors, Plumbing contractors • May 17: Internet service providers, Website designers, Computer hardware retailers, Software companies If your business has been on a previous list in any of these categories, look for an email from Jeanne Bennett, List researcher for Inside Tucson Business, with details on how to update your profile. If you would like to add your business to one of these lists, go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page to create a profile.

TRANSPORTATION

A Tucson Classic.

Ryan Airfield tower stays open — for now At the last-minute the Federal Aviation Administration (FAA) decided to delay the closure of 149 airport control towers including Ryan Airfield, 9698 W. Ajo Way, which was due to be shut down at 8 p.m. April 7. The Tucson Airport Authority (TAA), which runs Ryan Airfield, said the FAA decided to delay the closures to June 15 to give the agency additional time to respond to legal challenges and allow airports and the FAA more time time plan and execute changes to the National Airspace System. Since the closure plans were announced March 22, TAA has been trying to persuade the FAA to reverse its decision to close Ryan’s air traffic control tower arguing it provides significant safety and economic benefits to Southern Arizona. The efforts, however, stopped short of filing a legal challenge.

banks reopened Monday as First Scottsdale Bank. When First Scottsdale Bank’s $8.6 million acquisition of Commerce Bank goes through sometime this summer, all of the banks will assume the name Commerce Bank. “The acquisition of Gold Canyon Bank expands our ability to serve the banking needs of clients throughout the state, and represents another important step toward our goal of becoming the premier community banking franchise in Arizona,” said Rich Vogel, chairman and CEO of First Scottsdale. Gold Canyon was the first Arizona bank failure since December 2011 and the 14th Arizona-based bank to fail since Oct. 1, 2000, according to the FDIC.

GOVERNMENT

Not ready to file taxes? IRS has form for extension Residents who haven’t finished filling out their 2012 income tax returns can get an automatic six-month extension by filling out Form 4868 through the Free File link on IRS.gov. In a short time anyone, regardless of income, can use the free service to electronically request an automatic tax-filing extension. Filing this form gives taxpayers until Oct. 15 to file a return. To get the extension, taxpayers must estimate their tax liability on the form and pay any amount due. Complete details on all filing and payment options are at IRS.gov.

EDUCATION/RESEARCH

UA’s Eller MBA program moves up in rankings The University of Arizona’s Eller College of Management graduate program has moved up 13 notches to be ranked No. 44 this year by U.S. News & World Report. This is the second consecutive year, the program has moved up in the rankins. Last year, the Eller program was named an MBA Program on the Rise by the publication.

FINANCIAL

FDIC shuts down bank in Pinal County

306 N Alvernon Way LodgeOnTheDesert.com 877.498.6776

First Scottsdale Bank, which is in the process of acquiring Tucson-based Commerce Bank of Arizona, this week took over all deposits and nearly all of the assets of Gold Canyon Bank, which was shut down and taken over April 5 by the Federal Deposit Insurance Corp. As receiver for Gold Canyon Bank, the FDIC named First Scottsdale as the winning bidder to take over the failed bank’s assets. The failed bank was headquartered in Gold Canyon, near Apache Junction in Pinal County, and had a branch in Peoria. The

ASSOCIATIONS

Realtors tap Yohem for communications director The Tucson Association of Realtors has named Roger Yohem, writer and columnist for Inside Tucson Business, to fill its newly created position of director of communications, effective Monday (April 15). Yohem brings 25 years of experience in communications, public relations, marketing, special event, and news media background to the 4,500-member association. Prior to joining Inside Tucson Business in 2009, Yohem had been a vice president and

InsideTucsonBusiness.com

APRIL 12, 2013

BRIEFS communications director for the Southern Arizona Home Builders Association and public information director for Tucson Electric Power. “Hiring a top-level candidate with Roger’s unique and proven skill set will be of great benefit to our association. He has proven proficiency in three key areas: prior experience with a trade association, successful corporate-style communications, and knowledge of the news business as a reporter,” said Philip Tedesco, chief executive officer of the Realtors. “That distinctive combination of experience is what drew our attention to him.” Yohem will be responsible for developing and directing a comprehensive strategy for the association’s internal and external communications.

industry, among others. The invitation-only group, currently limited to 100 members, has included such well known lawyers as Joe Jamail, John Edwards, the late Johnie Cochran, Moe Levine and Court of Appeals Justice, Jack Fuchsberg. The initial meeting of the Inner Circle of Advocates was held in San Francisco in 1972. Grand invited only those lawyers who had obtained jury verdicts in excess of $1 million. There were a total of 11 in the nation. Grand had received a jury verdict of

$3.5 million which was the largest in the United States at that time for a single injury. On more than 100 occasions after that Grand obtained either a verdict or settlement in excess of $1 million. Grand was born in what was then the independent nation of Danzig in 1930. He came to New York with his parents in 1939, just before the Nazis entered his homeland. He earned his undergraduate degree from New York University and then, in 1958, his law degree from the University of Arizona

College of Law. He began his practice as a Deputy County Attorney in 1958. Grand is survived by his wife, Marcia and daughter, Cindy. He and Marcia were married six months after they met in 1952, a year after he moved to Tucson. Sinai Chapel, San Francisco, is handling funeral arrangements. In lieu of flowers, donations may be made to the College of Art at the University of Arizona.

CIVIC

Greater Tucson Leadership seeks leadership candidates Tuesday (April 16) is the deadline for applications for Greater Tucson Leadership’s 2013-2014 civic leadership program. Each participant is committed to developing stronger leadership skills and becoming an agent of change in the workplace and larger community. Over 10 months, class members spend one Friday per month focused on individual issues, as well as an opening retreat and call to action session. Issue days include topics such as government, border, environment, economic development, education, healthcare, arts and culture, criminal justice and media. GTL has over 900 graduates throughout the region. Applications are online at greatertucson leadership.org/class or through the Greater Tucson Leadership office, 465 W. St. Mary’s Road. The deadline for submissions is 5 p.m. Tuesday. Questions about the program can be answered by email at info@tucsonleadership. org or (520) 792-2250, ext. 140.

IN MEMORIAM

Attorney Richard Grand dies suddenly at age 83 Tucson attorney Richard D. Grand, 83, who was nationally recognized for his success as a plaintiff ’s trial lawyer, died suddenly April 7 of natural causes. Grand was the founder of the Inner Circle of Advocates, a group of plaintiffs’ attorneys called by the National Law Journal, “the elite of the plaintiffs’ bar.” Upon its founding, Grand said the Inner Circle was designed to be a think tank for “the most qualified legal brain trust in the USA.” It was formed as an attempt to level the playing field between the average consumer and the enormous resources of the insurance industry, the auto industry, the tobacco industry, and the pharmaceutical

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20 APRIL 12, 2013

INSIDE TUCSON BUSINESS

PROFILE

From pasture to product, UA Meat Sciences Lab offers students — and Tucsonans — a unique opportunity By Lee Allen Inside Tucson Business

PROMOTIONS The Tucson Airport Authority has promoted Danette Bewley, A.A.E., to senior director of operations and maintenance. Her role is to ensure compliance with federal regulations and maintain emergency preparedness at both Tucson International Airport and Ryan Airfield. Bewley joined TAA in June 2012 as director of operations. She has a bachelor’s degree and two master’s degrees from National University in San Diego. Bewley

previously held the director position at Jacksonville International Airport and worked at San Diego International Airport in several capacities over a 14-year period. Lisa Lorenson, CPRW, has been promoted to director of client services/ outplacement marketing at Professional Development Strategies. She has years of experience in outplacement and coaching to provide PDS clients with strong career advancement tools, increased confidence and marketing strategies to successfully progress in their careers.

BIZ FACTS Lee Allen

From animals grazing in the field to those hanging in the meat locker, a group of University of Arizona agriculture students are getting the full livestock experience. A cadre of graduate and independent study collegians are learning first-hand about the life of a rancher by getting real mud on their boots at the UA’s Meat Sciences Lab where they get involved in management of cattle herds. And because the lab is approved by the Food and Drug Administration (FDA) as a harvester and processor of all meat animal species, the students staff what is believed to be the only weekly student-run sale of meat products in the U.S. The store is open for just three hours each Friday afternoon on the UA farm on North Campbell Avenue. “While students work alongside experienced meat cutters in preparation of product, I developed the program to allow them to gain business experience,” says Meat Scientist John Marchello. Calling it a win-win-win — for students, consumers, and the laboratory — Marchello says, “We’ve seen a tremendous growth in sales over the past three years. This weekly event helps us move product in volume and pretty much whatever we put in the freezer case on Friday sells out. There’s usually no leftovers.” During a recent Friday afternoon visit, ox tail was the specialty item of the day although packaged products range from both grain-fed and grass-fed beef in all cuts to deer, elk, buffalo, pork, and sometimes, emu. “We have a large inventory of every retail cut you’d find in a grocery store as

University of Arizona Meat Lab ccgameats.com/store.html (520) 318-7021 Sale hours 3-6 p.m. Fridays

John Marchello of the UA MeatScience Lab.

well as some you might not see as often,” says student meat sale manager Kevin Whitehurst. “Although we always sell a lot of hamburger, our biggest seller is New York strip and rib eye steaks — we generally run out of those every week.” Whitehurst says the students like the experience, which explains why they’re almost always smiling. “Another thing that makes us cool is we regularly carry 100 percent naturally organic free-range Arizona grass-fed beef that is not often found in grocery meat markets.”

4181 N. Campbell Ave. (enter the UA Farm off Roger Road west of Campbell Avenue, drive toward the silos, turn right at the T-intersection and follow the road as it curves to the left. A parking lot is to the right of the road.) sayss the 50 to 75 ccustomers Marchello sa stomers who come by the sales buy between $1,500 and $3,000 worth of product every week. “Our sales increased 200 percent last year,” adds Whitehurst.

PEOPLE IN ACTION

DANETTE BEWLEY

JESSICA GALOW

NEW HIRES Carondelet Foundation has hired Jessica Galow to serve as the organization’s corporate and foundation development officer. In her new role, Galow will

LISA LORENSON

MARK POLICH

{YOUR NAME HERE} To announce a professional promotion, appointment, election, new hire or other company personnel actions, fax press releases to (520) 295-4071, Attention: People; or email submissions to pmcnamara@azbiz.com. Include an attached photo at 300 dpi.

TY CRANDALL

develop and strengthen relationships with the business community throughout Southern Arizona. In addition, she will assist with the Foundation’s overall development operation. Galow was

He explains that everything is done in-house. “When we sell grass-fed beef, we bring the animal in and own it from the start to the end. Everything is done within 24 hours prior to the sale so our steaks are fresh cut and vacuum packaged. While grocery stores use CO2 in their packaging to keep the meats natural color, ours is still fresh and will last longer in the refrigerator at home.” Michael McKisson, who described himself as a semi-regular customer, said, “I’m not so sure I want to see an article about the meat sale because I don’t want to stand in line longer. I want this to be my little secret.” Among first-time customers were Barbara and Don Thomas, a couple visiting from Canada. “We plan to eat well tomorrow,” Barbara said. Tucsonan Constance Singleton and her two daughters were also new. “We always see the sale sign on the way to the mall, but we haven’t stopped before. Today we’ll take home a pork roast and stick it in the oven so it’s ready to eat when we come home from church.” Availability of all cuts is not guaranteed each week, but when the freezers are full customers can find just about everything from bone-in to boneless steaks, ovenready rib roasts, barbecue chuck ribs, whole brisket, and an olio of porterhouse, T-bone, New York Strip, sirloin tip, tri-tip and flank steak. “If you want something to put in the oven or on the grill for supper, better get there early when the doors open at 3 p.m. because these animal science students are really becoming adroit at selling to the public and we tend to run out of product before we run out of public,” Marchello says.

previously fund development manager at the Girl Scouts of Southern Arizona. Galow holds a bachelor of science in entrepreneurship and business management from the University of Arizona Eller College of Management. La Paloma Country Club has hired Mark Polich as director of instruction. Polich will oversee all instruction programs at La Paloma, individual and group lessons for members, private instruction and corporate clinics for resort guests. He will also develop the skills of the club’s

current staff of instructors. The Westin La Paloma Resort and Spa has hired Ty Crandall as business travel and leisure sales manager. Crandall will promote the resort and Tucson to a network of contacts in the leisure travel corporate, wholesale and agency communities. Before joining Westin La Paloma, Crandall worked as leisure sales manager and a variety of managerial roles at the Sanctuary Camelback Mountain resort in Paradise Valley. Crandall earned a BS in communication from Arizona State University.

InsideTucsonBusiness.com

APRIL 12, 2013

OUT OF THE OFFICE ON THE MENU

ARTS & CULTURE

Brackets done, the winner is chorizo ‘Hangover mac’

Desert Museum inaugural concert features John Jorgenson Quintet

cha mac. Product sales dictated the winner The Louisville Cardinals are celebrating in each round, with the winners advancing their first NCAA basketball championship to an Elite Eight and Final Four. in nearly 30 years and that brings us to the Going into the finals was the caprese culmination of a month of talk about seeds mac, made with tomato, cream and brackets. Among Tucson cheese, basil and mozzarella. Its foodies, another kind of opponent was the hangover mac, madness ensues in the spring, made with chorizo, onions and and it’s all about the mystique hash browns, topped with a fried and majesty of macaroni. egg. The two were virtually tied Shall we say Mac Madness? during the course of the champiAs this year’s NCAA basketball onship, but in the end, the tournament was getting underhangover was declared the way, restaurateur Mike Lanz winner. The guest who develbegan to leverage the energy oped the winning recipe will around March Madness to now see his own hangover on the generate some new ideas for his MATT RUSSELL Fix’s menu every weekend. menu at the Fix, 943 E. University What did Lanz find most Blvd., Suite 115, in Main Gate surprising about the competition? “Many Square. Specializing in macaroni and cheese, of the recipes we thought would do well the Fix already boasted 15 different varieties really didn’t, and others that we thought of mac on its menu, but Lanz was out to show would drop out after the first round ended how versatile the classic comfort food is. So up advancing,” he said. “This just goes to he issued a call to elicit ideas for creative mac show you how unique a mac and cheese and cheese recipes. experience can be.” After receiving many unique creations Lore credits Thomas Jefferson with from fans, Lanz committed to prepare and inventing mac and cheese, and I can only serve 16 of them, and let his guests decide imagine his amazement in seeing how far which was the best — and he did it all in a his creation has come since he adorned his single-elimination bracket system similar pasta with York cheddar for a White House to the NCAA tournament. dinner in 1802. Ironically, this could be the “We were all encouraged by the thought first time in history when the hangover that was put into each recipe,” said Lanz, preceded the celebration. noting some of them had to be eliminated from the start due to the complexity of the recipes. “While a Poutine mac and cheese Contact Matt Russell, whose day job is made with beef gravy, potato and cheese CEO of Russell Public Communications, at curds might have sounded like a winner to mrussell@russellpublic.com. Russell is also the the person who submitted it, cheese curd host of “On the Menu Live” that airs 4-5 p.m. management isn’t something we know a Saturdays on KNST 790-AM and he does the whole lot about,” he admitted. Weekend Watch segment of the “Buckmaster Among the Sweet 16 finalists were a Show” from noon-1 p.m. Fridays on KVOI lobster Alfredo mac, bacon-jalapeno-green 1030-AM. chili mac and a mushroom-broccoli-Srira-

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

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pologist Peter Warshall and legal scholar The John Jorgenson Quintet, led by its Robert A. Williams Jr. namesake gypsy jazz musician and former MOCA says the awards are inspired by member of the Desert Rose Band, will the ancient Roman concept of genius loci, perform in an inaugural concert event or “spirit of place,” honoring tonight and Saturday in the visionary and innovative intimate 300-seat Warden Oasis Tucsonans whose activities have Theater at the Arizona-Sonora a global impact, and whose Desert Museum, 2021 N. talents have been internationally Kinney Road. A highlight of the recognized. performances will be a new Tickets are $200 each, or $250 song Jorgenson created for premium seating if they’re celebrating the museum’s Oasis still available. Buy them online at Project, a program designed to www.moca-tucson.org. develop sustaining relationships between the Desert Museum and artists connecting HERB STRATFORD new audiences to the conservaFilms of note coming out this tion mission. weekend at multiplexes include The quintet’s concerts begin at 6 p.m. the latest from “127 Hours” and “Slumdog tonight and Saturday and will be recorded Millionaire” director Danny Boyle called for a DVD project with proceeds going in “Trance,” which traces an art heist gone part to the Desert Museum. Regular tickets wrong due to a head injury. Other features for the concerts are priced at $65 each, with include Hollywood’s latest version of discounts for Desert Museum members baseball groundbreaker Jackie Robinson’s and packages priced up to $200 each that story, “42,” the drama “The Place Beyond include extras such as a post-concert party the Pines” with Ryan Gosling and Bradley and a year’s membership in the museum. Cooper, and the latest “Scary Movie” Buy tickets online at oasisproject. horror-comedy mashup “Scary Movie 5” desertmuseum.org. with cameos from a crowd including

Film

‘Local Geniuses’ The Museum of Contemporary Art (MOCA), 265 S. Church Ave., recognizes its newest class of “Local Geniuses” with a gala event at 6 tonight that starts at the Leo Rich Theater in the Tucson Convention Center complex, 260 S. Church Ave., then moves across the street to the museum. Being honored tonight are evolutionary biologist Anna Dornhaus, architect Rick Joy, ecologist Gary Nabhan, bioanthro-

Lindsay Lohan and Charlie Sheen. At the Loft Cinema, 3233 E. Speedway, the critically acclaimed film “No,” about political unrest in Chile, also opens this weekend.

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

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22 APRIL 12, 2013

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Is a cash balance plan right for your business? A cash balance plan is a type of taxqualified defined benefit pension plan. If you and other highly-compensated employees are currently maximizing contributions to your company’s 401(k) and profit-sharing plans, it can be a valuable plan addition to your retirement program. As with traditional defined benefit pension plans, cash balance plans are subject to minimum funding standards, and must provide a specified accrued benefit at retirement. However, unlike traditional defined benefit pension plans, hypothetical “individual accounts” are used to communicate the current value of each participant’s accrued benefit. Participants receive periodic statements showing the accumulation of “contribution credits” based on compensation, age and service, and “interest credits” based upon a market rate of return. Employer contributions are based upon actuarial projections, and earnings are credited to the plan’s trust based upon actual investment performance. Distributions from cash balance plans are normally paid as an annuity, but lump sum benefits may also be available (with spousal consent) upon termination of employment. A cash balance plan allows the plan sponsor to make tax-deductible contributions for eligible employees determined under a nondiscriminatory formula, which may exceed the dollar limits for defined contribution plans. Cash balance plan contributions are in addition to amounts contributed for an employee to a defined

contribution plan. Potential candidates for cash balance plans are companies with owners, partners or other highly compensated employees who may have neglected retirement W. DAVID FAY savings to grow their business, or otherwise desire to catch up on retirement savings. Businesses should have consistent cash flows and profits since contributions are required on an ongoing basis to meet the minimum funding standards of the Internal Revenue Code. Cash balance plans require the services of an actuary to determine appropriate funding levels. Your current retirement program may not be taking advantage of the additional benefits which can be provided through a cash balance plan. Now may be the time to review your current retirement program design to make sure you are fully maximizing your tax savings and retirement contributions. If you would like to explore whether a cash balance plan could be suitable for your business, consult your financial advisor.

Contact W. David Fay, a second vice president in wealth management and financial advisor with Morgan Stanley Smith Barney, at http://fa.smithbarney.com/ thefaymillergroup or (502) 745-7069.

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

Company Name

Symbol

Apr. 10

Apr. 3 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS UNS

0.03 0.07 18.61 48.98 31.50

0.02 0.10 18.20 48.69 31.64

0.01 -0.03 0.41 0.29 -0.14

0.02 0.01 9.56 35.38 22.76

0.07 0.51 20.09 49.37 33.55

8.31 3.67 2.61 12.32 62.51 9.12 106.33 24.82 62.08 4.09 25.51 45.06 41.62 42.26 48.61 16.85 105.75 36.95 56.96 15.25 81.30 74.41 23.15 33.69 29.80 71.69 74.41 212.00 37.16 64.82 6.79 49.25 35.54 21.66 47.86 32.65 1.25 39.51 39.01 44.01 66.64 44.36 41.99 43.11 55.63 71.77 14.09 19.25 58.22 60.84 25.92 52.24 52.79 15.30 13.04 49.14 43.11 68.86 21.62 35.76 59.56 29.83 141.30 17.60 15.78 34.19 77.37 48.11 37.57 14.09 24.61 53.92 35.50 27.66 5.65 18.67

8.27 3.51 2.66 11.81 62.58 8.53 104.24 21.65 61.70 3.94 23.93 42.50 41.82 45.26 47.82 16.46 106.36 35.06 54.13 14.56 78.85 70.92 22.84 31.55 29.09 70.36 73.33 212.66 36.10 64.59 6.65 46.85 34.75 20.02 47.05 32.04 1.25 38.93 37.87 43.93 64.23 42.39 41.00 43.43 54.24 70.18 14.43 19.01 58.02 59.51 25.20 51.65 49.53 13.96 12.54 47.41 43.34 67.98 21.23 34.15 58.10 28.66 138.84 17.12 15.53 33.67 76.00 46.30 36.67 13.46 23.88 54.06 34.19 27.33 4.82 18.05

0.04 0.16 -0.05 0.51 -0.07 0.59 2.09 3.17 0.38 0.15 1.58 2.56 -0.20 -3.00 0.79 0.39 -0.61 1.89 2.83 0.69 2.45 3.49 0.31 2.14 0.71 1.33 1.08 -0.66 1.06 0.23 0.14 2.40 0.79 1.64 0.81 0.61 0.00 0.58 1.14 0.08 2.41 1.97 0.99 -0.32 1.39 1.59 -0.34 0.24 0.20 1.33 0.72 0.59 3.26 1.34 0.50 1.73 -0.23 0.88 0.39 1.61 1.46 1.17 2.46 0.48 0.25 0.52 1.37 1.81 0.90 0.63 0.73 -0.14 1.31 0.33 0.83 0.62

7.97 0.36 1.48 6.72 50.95 5.30 78.21 11.20 50.89 2.97 14.97 24.61 28.09 20.71 22.19 12.40 81.98 32.05 43.08 8.42 60.76 50.27 14.23 30.54 21.38 46.37 52.21 181.85 27.10 53.38 3.94 30.83 27.96 6.46 41.35 20.98 1.10 23.48 24.76 38.14 54.32 32.31 33.93 24.73 41.11 56.59 13.55 7.63 49.03 38.63 14.73 33.03 38.40 6.25 7.76 39.01 25.77 54.68 14.04 26.06 33.62 17.45 104.08 15.98 7.54 28.58 57.18 28.53 29.80 8.00 17.45 47.00 21.39 7.80 2.99 5.90

10.24 4.52 3.13 12.94 64.79 10.57 106.37 26.29 63.07 4.93 25.51 47.92 42.61 48.59 50.59 17.50 107.75 43.43 57.09 17.25 89.98 74.62 25.56 43.65 30.88 71.79 75.75 215.90 37.70 68.41 6.89 51.00 38.62 22.43 55.25 33.28 1.81 43.90 39.98 44.78 66.65 44.95 42.27 48.62 55.94 72.27 36.89 21.97 59.34 60.99 26.00 52.26 68.77 16.32 13.58 49.24 44.34 69.84 21.68 35.77 59.74 32.95 143.00 38.34 17.43 35.46 78.38 48.50 38.20 14.51 25.86 55.20 40.69 31.53 9.22 20.97

Southern Arizona presence Alcoa Inc (Huck Fasteners) AA AMR Corp (American Airlines) AAMRQ Augusta Resource Corp (Rosemont Mine) AZC Bank Of America Corp BAC Bank of Montreal (M&I Bank) BMO BBVA Compass BBVA 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 SHLD Sears Holdings (Sears, Kmart, Customer Care) 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) UAL 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 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

APRIL 12, 2013

INSIDE REAL ESTATE & CONSTRUCTION Momentum picking up as foreclosures see large quarterly decline By Roger Yohem Inside Tucson Business The residential real estate market continued to gain momentum during March as the number of foreclosure notices hit a five-year low. Last month, 512 trustee’s notices were issued, the smallest monthly total since 475 notices were served in December 2007. Year-to-date, 1,677 notices have been issued, down from 2,527 statements during the first three months of 2012 (see chart). That represents a 34 percent decrease yearover-year for the quarter, according to new data from the Pima County Recorder’s Office. With fewer distressed homes coming onto the market, sales of foreclosed homes also have slowed. Foreclosure sales have dropped from 1,342 units in the 2012 first quarter to 1,017 units this year. That is a decline of 325 homes, or 24 percent fewer sales. For 2012, an average of 485 distressed homes were sold monthly. Year-to-date in 2013, the rate is now 339 sales per month. Since May 2012, foreclosure notices have been trending downward. During 2012, an average 774 notices per month were issued. So far, the 2013 monthly pace is averaging 559 notices per month. A notice of trustee’s sale is the first step in the foreclosure process. Since 2010, about 65 percent of households served with notices have been unable to work out a mortgage modification and ended up losing their homes.

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

TUCSON REAL ESTATE

4/1/2013

3/25/2013

$155,750 4,894 451 453 186

$146,750 5,013 411 429 458

Source: Long Realty Research Center

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

December Total Monthly avg.

2008 699 598 661 700 720 742 721 814 782 921 675

30 YEAR 15 YEAR 5/1 ARM

Current

2010 863 982 1,089 985 890 862 1,111 1,067 1,090 1,019 829

923 1,038 876 8,956 12,184 11,663 746 1,015 972

2011 975 762 948 721 748 693 666 917 797 816 754

2012 705 918 904 910 984 946 797 794 625 638 534

636 532 9,433 9,287 786 774

2013

631 534 512

Sales and leases 1,677 559

Pima County Recorder’s Office data

Northwest boom

Too many too fast?

As the new housing numbers roll in, they sure make the prognosticators look good. For months, real estate, construction and land experts have been predicting strong construction activity in early 2013 for the Marana and northwest markets. So far, their forecasts have come to fruition. For the 2013 first quarter, construction permits for new single family homes have spiked 48.5 percent higher than a year ago. Since January, 649 permits have been issued compared to 437 for the 2012 first quarter, according to Ginger Kneup, owner of Bright Future Real Estate Research. The largest increase was in Marana with 235 first-quarter permits compared to just 97 for the same year-ago period. Kneup noted that the 138-permit increase is a 142 percent jump in activity. Oro Valley is 51 permits ahead of last year’s quarterly pace of 20 permits. For the same period, Pima County increased from 146 to 183 permits. The only notable decrease was in the City of Tucson where permits declined 26 percent, dropping from 74 to 55 permits.

Is Tucson’s dynamic student housing market already over-built before every planned project has been completed? The Metropolitan Pima Alliance (MPA) will address the issue at a forum next Friday (April 19). Melissa Vito, vice president of student affairs at the University of Arizona, will moderate “What is the market of student housing?” Confirmed speakers include Steve Bus, vice president of Campus Acquisitions; and Bob Kaplan, principal of Picor Commercial Real Estate Services. Executives from student housing developers Core Campus and Capstone have been invited but not yet confirmed. The event is from 7:15-9 a.m., April 19 in the Community Room of the Tucson Association of Realtors, 2445 N. Tucson Blvd. The cost is $25 for MPA members; $45 for non-members and walk-ins. Registration and details are at http://mpaaz.org.

WEEKLY MORTGAGE RATES Program

2009 882 1,016 1,154 1,093 991 1,002 1,063 1,130 1,008 948 859

Last Week

4/9/2013

One 12 Month 12 Month Year Ago High Low

3.50% 3.625%APR 3.50% 3.625%APR 4.95% 4.95% 3.38% 3.00% 3.25%APR 3.00% 3.25% APR 4.22% 4.22% 2.75% 2.63% 2.875%APR 2.63% 2.875% APR 2.87% 2.87% 2.63%

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) Hotchkiss Financial, Inc. P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000 MB #0905432. Rates are subject to change without notice based upon market conditions.

real estate, legal and tax considerations when doing business across the border. The event will feature panelists Miguel Tapia, senior counsel with Salazar International Advisors; Denisse Angulo, bilingual real estate advisor in regional marketing with Picor Commercial Real Estate Services; and David Lopez-Monroy, shareholder with Beach Fleischman PC. The forum will be held in the Safari Room at the Arizona Inn, 2200 E. Elm St. Registration is at 11:30 a.m. with luncheon program scheduled for noon-1 p.m. Cost is $25 for CREW members; $40 for non-members and walk-ins. Registration and details are at www.tucsoncrew.org.

Contractors’ show The Alliance of Construction Trades (ACT) will hold its annual Construction Industry Trade Show May 15 at the Hotel Tucson City Center, 475 N. Granada Ave. More than 100 exhibitors are expected, said ACT executive director Jim Kuliesh. The event is open to anyone working in or affiliated with the construction industry. Business owners and the general public looking for construction services are also welcome. Details are online at www.actaz. net or call (520) 624-3002.

Dealing in Mexico The Tucson CREW (Commercial Real Estate Women) will present “Doing a Deal in Mexico” Thursday (April 18). It’s a forum focusing on

• Lennar Homes Tucson purchased 45 finished lots for $2.25 million in the Eagle Crest Ranch Phase V development at the northeast corner of Oracle Road and Eagle Crest Ranch Boulevard across the Pima County line in Pinal County. The seller was CRVI H-AZCO LLC, Austin, Texas. The transaction was handled by Will White, Land Advisors Organization. • Legacy Property Management LLC purchased a 45,675 square-foot industrial building at 4700 S. Overland Drive for $4.625 million from Brian Realty Group LLC, represented by Rob Glaser, Picor Commercial Real Estate Services. The buyer was represented by Jon Garvey and Henry Wildermuth, Available Properties. • Wholesalers Property Co. purchased a 25,412 square-foot industrial building at 2565 N. Huachuca for $1.17 million from Tucson Bradley Group LLC, represented by Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services. The buyer was represented by Tim Healy and Bob DeLaney, CBRE. • Jon and Stephen Offerman purchased the 35-unit Annandale Apartments, 5601 E. Fifth St., for $902,424 from Mahalo Commercial Properties 10 LLC. The transaction was handled by Bob Kaplan and Allan Mendelsberg, Picor Commercial Real Estate Services. • Modern Court Properties purchased a 6,400 square-foot office/warehouse at 1621 W. Modern Court for $485,000 from Tessman LLC, represented by Ron Zimmerman, Newmark Grubb Knight Frank. The buyer was represented by Paul Hooker, Picor Commercial Real Estate Services. • DT and KP Investments LLC purchased 1934 E. 18th St. for $120,000 from Tierra Natal Revocable Living Trust, represented by Allan Moore, Chapman Lindsey Commercial Real Estate. The buyer was represented by Dave Gallaher, Tucson Industrial Realty.

Email sales and leases and other real estate news items to ryohem@azbiz.com. This is the final Real Estate & Construction column written by Roger Yohem, who is leaving Inside Tucson Business. But the column will continue.

24 APRIL 12, 2013

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Up & Comers and all is right for Tucson This is a special week. If you’re holding the print version of Inside Tucson Business, you’ve probably already noticed the section featuring the 2013 class of Up & Comers. If you put aside the regular publication to glance through it first, it had to put you in a positive frame of mind. Tucson’s future is in a positive light with people of this caliber here trying to make it better. And what never ceases to amaze me are the variety of challenges DAVID HATFIELD people are achieving. This year’s honorees — all selected from nominations submitted by readers of Inside Tucson Business — are: • Natalie S. Brown, executive director of Iskatashitaa Refugee Network, which empowers refugees coming to this region from Africa, Asia and the Middle East. • Ryan Flannagan, CEO of Nuanced Media, who used a business failure as a learning experience and is already taking an active role in developing future leaders. • Wendy Gauthier, who quit her job to pursue an idea she saw to be a personal chef, establishing Chef Chic. As it continues to evolve I was jealous to learn that one of her latest ventures was to open a cafe inside the Arizona Daily Star building. • Heather Hiscox, who has really bitten off a challenge in these recessionary times as founder and owner of Seven Degrees Consulting, which specializes in helping non-profits. • Caitlin Jensen, marketing coordinator for the Downtown Tucson Partnership and someone who rightfully should take credit for helping to spread the word about the great things going on downtown these days. • Jennifer Johnson, supply manager for Raytheon Missile Systems, who grabs opportunities and runs with them whether its networking within Raytheon or working on projects with Junior League of Tucson. • Patrick Marcus, president of Marcus Engineering, a biomedical engineering firm, who is doing his part to make the Tucson region a biotech center. • Isaac Rothschild, an associate with the law firm of Mesch Clark & Rothschild and the mayor’s son but it’s his busy work schedule and volunteer work that people are noticing. • Nathan Saxton, owner of Borealis Arts, who is finding new venues to show off works by Tucson artists. There are plenty of reasons to be thinking positively of Tucson’s future. Nine of them are right there. And, as if those aren’t enough, be sure to check out what’s happened to previous honorees. Thanks, too, to our sponsor this year, Wells Fargo. It’s going to be great fun celebrating with our newest Up & Comers at a reception from 5:30 to 7:30 p.m. April 30 at Playground, 278 E. Congress St. Admission is $25. Make resevations online at www.InsideTucsonBusiness.com, click on the Up & Comers icon on the right side of the home page.

I hear you Thanks to those of you who’ve already responded to last week’s request to tell me about the news and features you like and don’t like in Inside Tucson Business. Readers certainly are passionate about certain things and I won’t take anything for gratned. If you’ve got something to say, please send an email my way. We’ve got some changes coming and what you tell me will help us steer them.

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

EDITORIAL

What makes airlines not fly to Tucson Want to know the fastest way to become a millionaire? Start as a billionaire and invest in an airline. That’s the answer famously given once by Sir Richard Branson, owner of Virgin Atlantic Airways. After Warren Buffett invested $358 million into shares of what was USAir Group in 1989 and saw it lose 75 percent of its value in five years, he was quoted saying, “If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money. But seriously, the airline business has been extraordinary. It has eaten up capital over the past century like almost no other business because people seem to keep coming back to it and putting fresh money in. “I have an 800 number now that I call if I get the urge to buy an airline stock. I call at 2 in the morning and I say: ‘My name is Warren, and I’m an aeroholic.’ And then they talk me down.” Since the federal government stopped regulating airlines in 1978 giving them the freedom to find their own ways to profitability, the industry has collectively lost $60 billion. Through 2011, the U.S. domestic airline industry has reported negative net income in 23 of the 32 years since deregulation. The airline industry is unique. It has high capital costs — airliners don’t come cheap — yet it is basically a service industry subject to the whims of a marketplace that changes as fast as the weather, literally. And once the doors to an airliner close, every empty seat is an opportunity lost. Business decisions that might be logical in any other industry don’t play out for airlines. Demand and supply don’t necessarily match up. Flights that are packed full may earn little in profits for an airline. Yield is an airline’s ability to charge a high enough fare to make money but price it low enough to entice passengers to buy. Obviously airlines don’t like routes with low yields, which is one of the reasons Delta Air Lines plans to suspend Tucson-to-Minneapolis non-

stop flights this summer. Southwest said there was little demand, much less yield, on its Tucson-to-Albuquerque, which is why those are permanently going away in June. There are other issues. The taxes and fees that are levied now make up more than 20 percent of the cost of a ticket. Then there is the price of fuel, though surprisingly, one economist says that’s not as big a deal as some would have us believe — since deregulation, oil costs were highest in the first seven years and the last six years (based on 2009 dollars) and yet the industry lost money in 13 of the remaining 19 years. Severin Borenstein, an economist at the Haas School of Business at the University of California Berkeley, examined the industry for a 2011 report and concluded the real problem has been the industry’s inability to raise fares. That is changing thanks to consolidation — four mergers in just the past five years. Delta and Northwest in 2008, United and Continental in 2010, Southwest and AirTran in 2012 and now American and US Airways want to combine operations. Which brings us to the situation we’re facing in Tucson. Passenger traffic so far this year is down nearly 10 percent at Tucson International Airport on seat capacity the airlines already have reduced by more than 6.5 percent. With a dwindling number of airlines, how does Tucson make itself more attractive? It’s a question we hope some influential Tucson business leaders got an answer to this week when John Jamotta, vice president for network planning at Southwest Airlines, met with them. It was an invitation-only meeting and we didn’t get our invite so we don’t know what the message was. We do know, however, a message was supposed to be delivered. We eagerly await to see what Tucson business leaders will do with that message. The ball is in your court, ladies and gentleman. Do tell us when you get some more airline service into the market.

InsideTucsonBusiness.com

APRIL 12, 2013

OPINION BIZ INK

After 3½ years, Biz Ink bids adieu After 3½ years behind a news desk at Inside Tucson Business, next week I’ll be back on the other side. Opportunity came calling from the Tucson Association of Realtors where I will become the organization’s new communications director. Inside Tucson Business has been a great career experience, working with terrific people who deserve thanks. For me, I’m packing up some treasured memories. First off, kudos to editor David “The Golden Pen” Hatfield. His work ethic, institutional knowledge of the news media and Tucson community, and wry humor is unsurpassed. Thank you for letting me run with this column and my news beat. Likewise, I hope our friendship will run long into the future. The Tucson Advertising Federation nailed it when it gave you the Golden Pen: you are a media legend. Looking back, the parody of Occupy Tucson was a highlight here. Over lunch, friend Dan Cavanagh from Freeport McMoRan Copper & Gold inspired me to do satire. The column’s snarkiness won a state-wide press award and was picked up by the Wall Street Journal. Celebrity-wise, I met several retail “brand names” including OmniMedia’s Martha Stewart; fashion designer Tommy Hilfiger; Sandeep Mathrani, CEO of General Growth

Properties owner of Tucson Mall and Park Place; and Terry Lundgren, CEO of Macy’s. The Journal Broadcast Group studios also were special. At 5 a.m. one day, I shadROGER YOHEM owed media personality Allen Kath. “Big Al” ran a show of controlled chaos, juggling dozens of traffic updates for KGUN 9 and four radio stations. AK, you’re a man of great character. Just “imagine,” it’s my turn to buy $5 burgers on Mondays at McMahon’s. One of Kath’s Journal sidekicks is 104.1 FM The Truth talk show host Jon Justice, who frequently uses Inside Tucson Business stories. Luckily, I was on his show a few times and enjoyed every moment. “JJ” is the only person to tell me I should write comedy for a living. Also on the radio dial, there are Chris DeSimone and Joe Higgins, hosts of “WakeUp, Tucson,” on KVOI 1030-AM. For almost a year, I did their show. About 6:20 a.m., I’d call Ed Alexander, their producer. Ed and I would pick three hot issues to discuss and he fed the

topics to Chris and Joe. But once we went live, we fed off of each other’s rambling comments and fell off script. By “quippin’ and rippin’” we never once got to all three issues. Thanks guys, let’s hook up again this fall to watch Notre Dame football. Journalism still has ethics and as a reporter, it can be tough to separate business from friendship. That was the situation with former Tucson Metropolitan Chamber of Commerce CEO Jack Camper. We met occasionally for coffee after his morning workout and he always prodded: Are we talking as friends or for news? There were times he shared things that could have been on the front page. Three others who deserve recognition and thanks are my advertising/marketing peers Mike Bolchalk, Dave Tedlock and Marv Kirchler. They have kept me grounded with their wise career advice, schooling me in the value of creative thinking, patience, high standards and professionalism. And for more than 20 years, builder/ developer Pete Herder was always there professionally and personally. Since 2009, I’ve met a lot of new real estate people who somehow evolved from news sources into friends. It wasn’t planned that way, it just happened. For example, it has

been a joy getting to know commercial mortgage banker Jim Sellers and taking our wives to Fini’s Landing for fish tacos. There’s also Barbi Reuter, a principal at Picor Commercial Real Estate Services, also known as Barbi Flapjack. Her dedication to family, career, marathons and community service is impressive. Likewise, Jim Marian at Chapman Lindsey is now a pal. I hope to have time to volley with him and George Larsen on the tennis courts. And who doesn’t know George Amos III of Tucson Realty & Trust, aka Hank? Well, here’s a little secret from a mutual friend; she tells me his real nickname is Spanky. George Howard, a talented photographer and musician, also has become a friend. For years, he has been on a mission to establish the Tucson Musicians Museum. Mayor Jonathan Rothschild, can you please help George find a permanent home for this project? The museum already has more than 120 inductees. And most importantly as I bid adieu, thank you for reading Biz Ink.

As of Monday (April 15), Roger Yohem will be director of communications for the Tucson Association of Realtors. Contact him at roger@tucsonrealtors.org or (520) 382-8796.

SPEAKING OUT

Affordable housing is linked to transportation options Corky Poster, former director of the University of Arizona’s Drachman Institute, says “Housing is only affordable if housing and transportation work together.” Taken from a broader perspective, we have to look at jobs, services, shopping, and transportation options in close proximity to housing if we want housing to be affordable. The farther out in the region that homebuyers move for housing they can afford to buy, the higher their transportation costs. When housing and transportation are considered together, the affordable mortgage isn’t a savings because car costs go up. The total amount spent is more than the mortgage alone. Some homebuyers may be spending more on transportation than they can afford. The Drachman Institute and the Chicagobased Center for Neighborhood Technology presented this concept of housing affordability and its connectivity to transportation choices at an Arizona Town Hall in November 2008. Poster said there’s no real definition of “affordable housing.” Many factors including location play a part. The federal government considers housing as affordable if a family spends no more than 30 percent of its income on housing and utilities. The formula for looking at housing

affordability has mostly focused on the price of construction along with land and infrastructure costs. Some may add a reduction in square footage, quality, location, and CAROL WEST production systems to this criteria. However, Poster says the actual costs of housing are far more complex. Other factors must be considered because housing cost elements must be looked at from their true measure of the monthly financial outlay for all costs related to housing, including transportation. Transportation costs are rarely considered in a household budget, but housing officials believe they should be added because this really helps determine whether or not housing-wherever it is located-is truly affordable. Poster believes we need “location efficient mortgages” so transportation costs are transferable to mortgage ability costs. “Smart Commute Mortgages” reward people buying homes in communities with good transit

options. These are flexible, low down payment mortgages awarded to qualified buyers who realize cost savings with the ability to use transit instead of a car for daily needs. Poster noted the planned urban development with greater density being planned along the route of Sun Link, the modern street car in Tucson’s core. Gridlock will occur if everyone living in that area continues to drive a car, he says. Alternative transportation options like the streetcar or other public transit must become a part of the city lifestyle. Pima County and incorporated areas in the region are currently updating their area plans. This is the time to consider what public policies can be added to link housing with transportation. Ideally policy makers should encourage more mixed use developments so residents can work and shop in the same areas where they live. There is also a need for recreation sites in close proximity. Zoning and parking requirements must be revised to reflect this. Transportation choices are increasing. In 2006 Pima County voters approved the Regional Transportation Authority (RTA) and the half-cent sales tax to support the plan elements. It’s estimated that over 20 years the revenue generated will be about $2.1 billion. About half of the funds will be used for

roads. The plan allocates $534 million for transit, and funding is also earmarked for 250 miles of sidewalks and 550 miles of bike paths. Residents across the region will have more transportation options. Some Sun Tran bus service has already been extended throughout the Tucson region. Sun Shuttle, a neighborhood transit service, gives users the ability to ride to school, doctor’s appointments, retail stores, and to take other types of trips. Smaller buses, called neighborhood circulators, have replaced 40-foot buses in some outlying neighborhoods connecting riders to major bus routes. It wasn’t anticipated that the RTA would enhance affordable housing, but there are now less costly mobility choices than the automobile. Residents throughout the region can choose where they want to live and keep their housing costs affordable with alternate transportation modes. Planners and policy makers must consider the increased options for transportation as the area plans are updated. The community will benefit if this is done.

Contact Carol West at cwwtucson@ comcast.net. West served on the Tucson City Council from 1999-2007 and was a council aide from 1987-1995.

26 APRIL 12, 2013

INSIDE TUCSON BUSINESS

OPINION ADVOCATING FOR BUSINESS

Pregnant teen, homeless man and abused child all want the economy to improve I’m told there are more than 3,000 non-profit organizations in Pima County. Many of them are charitable in nature. I’ve come to know some of the executives at these non-profits over the past two years because of the outreach and special considerations the Tucson Metro Chamber provides to non-profit members of our organization. One of the benefits the Tucson Metro Chamber provides for local non-profits is to help them tell their story to the public on the chamber’s weekly radio program, “Profiles in Business,” which airs at 6 a.m. Saturdays on KVOI 1030-AM. When I interview a non-profit executive for the show, one of the issues that always surfaces is funding. With state and federal funding of many of these non-profits being cut, they have become more dependent on private contributions. The problem is, the economy is struggling to recover. When the economy struggles, so do the non-profits that depend on the generosity of Southern Arizonans. Unfortunately for the pregnant teen, the homeless man, the abused child and countless others of our neighbors in need,

when the economy suffers, they do, too. With Washington politicians stuck on the blame game, no real blueprint for economic recovery to be found and elected leaders MIKE VARNEY already looking at the tea leaves to see what they’ll need to do to get re-elected, the economy is bound to continue to sputter. Consumers drive our economy and they are not confident about its future. Companies continue to retrench. They are cutting back on the number of organizations they can support. As they do, times get tougher for local charities and those they serve. Employees are still hunkered down, too. For the most part, they don’t see the recovery and don’t feel the recovery. They know the economy hasn’t recovered because most of them are doing their own jobs and someone

else’s so their employer can make it to the end of the recession. Discretionary money is being saved for rainy days instead of being contributed to local charities. So with all of this gloom and doom, what can you and I do about it? For one, do all you can to help our local economy expand. Call out our elected leaders when they waste your tax dollars. Demand they put economic recovery ahead of everything else. Now is not the time for petty politics and special interest payoffs. Now is the time to grow and expand. It is time to feed the job-creating Golden Goose of free enterprise. It is time to welcome private sector risk takers, remove the hurdles to their being able to invest in our community and get people back to work. In a stunning, data-driven book titled “The Coming Jobs War,” Gallup Research Chairman Jim Clifton writes: “It amazes me how few of my smart colleagues and friends don’t realize that when businesses fail, a country fails. When businesses fail, jobs fail. When jobs fail, GDP fails. When GDP fails, institutions, infrastructure and governments

fail. GDP and job growth are the chicken and the egg. The jobs war is what should get city leaders up in the morning, what they should work on all day and what should keep them from getting to sleep at night.” Growing the Tucson region’s local economy will have a positive “two-fer” effect on local non-profits. When the economy gets going the way it should, charitable contributions will increase. As the economy recovers, more people will be employed, lessening the demand for the services our charities provide. Every silly roadblock to business growth and economic vitality has a price. Often, it is those who are most in need who pay the biggest price — the pregnant teen, the homeless man and the abused child.

Contact Mike Varney, president and CEO of the Tucson Metro Chamber, at mvarney@tucsonchamber.org or (520) 792-2250. His Advocating for Business column appears monthly in Inside Tucson Business.

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For deadlines, position details, application and further information please access the Cityâ&#x20AC;&#x2122;s web page at www.showlowaz.gov/ chiefofpolice. . The City of Show Low is an Equal Opportunity/ Americans with Disabilities Act Employer (EOE/ADA).

BIG RESULTS

Put the â&#x20AC;&#x153;foodâ&#x20AC;? in snack food.

Call 520.623.2350 to advertise.

classifieds

Make your kids some deviled eggs.

Call 623-2350 to place your ad today. *Business Owner/Partner/Corporate Officers, Media Audit Feb-Mar 2010

TEACHER

Are you a thinking about a career change?

ATTEND COLLEGE ONLINE 100% Î&#x17D;DÄ&#x17E;Ä&#x161;Ĺ?Ä?Ä&#x201A;ĹŻÍ&#x2022; Î&#x17D; ĆľĆ?Ĺ?ĹśÄ&#x17E;Ć?Ć?Í&#x2022; Î&#x17D; Ć&#x152;Ĺ?ĹľĹ?ĹśÄ&#x201A;ĹŻ :ĆľĆ?Ć&#x;Ä?Ä&#x17E;Í&#x2022; Î&#x17D;,Ĺ˝Ć?Ć&#x2030;Ĺ?Ć&#x161;Ä&#x201A;ĹŻĹ?Ć&#x161;Ç&#x2021;Í&#x2022; Î&#x17D;tÄ&#x17E;Ä? :Ĺ˝Ä? Ć&#x2030;ĹŻÄ&#x201A;Ä?Ä&#x17E;ĹľÄ&#x17E;ĹśĆ&#x161; Ä&#x201A;Ć?Ć?Ĺ?Ć?Ć&#x161;Ä&#x201A;ĹśÄ?Ä&#x17E;Í&#x2DC; Ĺ˝ĹľĆ&#x2030;ĆľĆ&#x161;Ä&#x17E;Ć&#x152; Ä&#x201A;Ç&#x20AC;Ä&#x201A;Ĺ?ĹŻÄ&#x201A;Ä?ĹŻÄ&#x17E;Í&#x2DC; &Ĺ?ĹśÄ&#x201A;ĹśÄ?Ĺ?Ä&#x201A;ĹŻ Ĺ?Ä&#x161; Ĺ?Ä¨ Ć&#x2039;ĆľÄ&#x201A;ĹŻĹ?ÄŽÄ&#x17E;Ä&#x161;Í&#x2DC; ^ , s Ä&#x201A;ĆľĆ&#x161;Ĺ&#x161;Ĺ˝Ć&#x152;Ĺ?Ç&#x152;Ä&#x17E;Ä&#x161;Í&#x2DC;

Call 888-216-1541 www.CenturaOnline.com

ÂŽ www.hickmanseggs.com / facebook.com/HickmansEggs ÂŠ 2013, Hickman's Family Farms

FOR LEASE Medical Office Buildings Corona Commercial Center 49 E. Tallahassee Drive Corona, AZ 85641 â&#x20AC;&#x201C; 2066 Sq. Ft. â&#x20AC;&#x201C; 6 Exam Rooms â&#x20AC;&#x201C; 2 Physician Offices

â&#x20AC;&#x201C; Large Waiting Room â&#x20AC;&#x201C; Reception and Nurses Area â&#x20AC;&#x201C; Wired for Medical/Communications Equipment

Current opening for an ACCOUNT EXECUTIVE in Tucson. Weâ&#x20AC;&#x2122;re HIRING teachers Teachers have great presentation skills and are comfortable speaking to a roomful of people. Teachers are organized, arrive to work prepared, and know the importance of IROORZ XS 7KH\ DUH FRPIRUWDEOH ZLWK FRPSXWHUV DQG HIÂž FLHQW WLPH PDQDJHUV 'RHV this sound like you? Maybe itâ&#x20AC;&#x2122;s time for you to consider a career change. At Territorial Newspapers, we value these same skills for our advertising account executives. We offer FRPSHWLWLYH SD\ DQG WKH FXVWRPDU\ EHQHÂž WV VXFK DV KHDOWK LQVXUDQFH DQG D N SODQ

Email your information to jahearn@azbiz.com

Contact: Del Bedsaul 404-2424 399-3939

WWW.WICKCOMMUNICATIONS.COM

28 APRIL 12, 2013

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