Inside Tucson Business 04/20/12

VISIONARY RETAILERS As CEOs embrace technology, malls chase grocers, big boxes and good old socializing PAGE 5

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • APRIL 20, 2012 • VOL. 21, NO. 47 • $1

$2 million for tumors UA Cancer Center researching acid content of tumors Page 7

Bombardier thrives on grounded planes

Poor roads may drive Tucson City Council to

re-examine priorities

One-stop shop services jets with world-class talent Page 11

PAGE 3

T.L. Roof & O’Neil hit 30

Tim Glass

Business affiliates built prominent construction firm Page 19

U.S. approves first accountable care organization in Southern Arizona

By Christy Krueger Inside Tucson Business Arizona Connected Care this month was selected by an agency of U.S. Department of Health and Human Services to be the first federally approved accountable care organization in Southern Arizona.

It was among 27 groups across the U.S. approved by the Centers for Medicare and Medicaid Services to participate in the Shared Savings Program under the 2010 federal health care reform act.

“We’re pioneers in this,” said John Friend, executive director of Arizona Connected Care.

The program provides measurable improvements to the quality

of health care while helping to keep costs in check. With the federal approval, Arizona Connected Care providers will work with patients who are enrolled in Medicare’s general fee-for-services plan.

Arizona Connected Care providers include Tucson Medical Center, El Rio Community Health Center, Marana Health Center, Nogales’ Mariposa Community Health Center and more than 150 physicians in the region.

“What we’re building is to enhance the services now that previously were uncompensated,” Friend said. “For example, when a patient leaves the hospital, he goes home or to a nursing facility. There was a weak system to support him

with post-acute care. We will have trained people to help as patients move from site to site, making sure the environment is safe and they meet their appointments.”

Friend also said the strategies will be supported by new technologies.

Many providers have implemented electronic medical records, but the systems need to be improved and linked to one another, he said. “As a patient is sent from primary care to the hospital, it’s beneficial if information moves with the patient.”

Arizona Connected Care will evaluate its performance, based on standards of care already in place in the health care industry, and submit reports to the government. The rate of hospital readmission is one area

that can be measured.

“If readmission is too high – if the patient didn’t have proper care at home or get the meds right, he might end up in the hospital. By managing the patient at home, re-hospitalization will be avoided,” Friend said.

When Arizona Connected Care is able to show increased quality of care and reduced costs, it will be eligible to receive a share of the savings. The prize for the rest of us is the long-term sustainability of Medicare.

“If we don’t begin to control the rate of inflation in health care,” Friend stressed, “we’ll use up Medicare. This (program) keeps costs down. As we achieve good health, the by-product is less cost.”

2 APRIL 20, 2012

INSIDE TUCSON BUSINESS

Get a 0% introductory rate when you open a new Business Platinum Credit Card

An essential tool for small businesses to help manage everyday expenses, the Wells Fargo Business Platinum Credit Card also offers: ĆŒÉ„É„ ./Ć?$)Ć? ' ..É„- 2 - . ĆŒÉ„É„ *É„ ))0 'É„ - É„! ĆŒÉ„É„ - $/É„'$) .É„0+É„/*É„ÇƒĆ ĹźĆ‡ĹźĹźĹź .&É„0.É„ *0/É„/#$.É„ ) É„*0-É„*/# -É„ ++- $ /$*)É„ ĹŚ -.É„ 4É„ ''$)"É„Ĺ˝Ć?Ć„ĆƒĆƒĆ?ƀſƂĆ?Ć€Ĺ˝ĆƒĹźĆ‡É„*-É„ *)/ /É„4*0-É„'* 'É„ )& -É„/* 4Ɔ wellsfargo.com/appreciation

Credit decisions are subject to credit qualiďŹ cation. Offer valid from January 1, 2012 to June 30, 2012. New Business Platinum Credit Card accounts submitted and approved during the promotional period will receive the introductory rate of 0% for the ďŹ rst nine billing cycles. The 0% introductory rate applies to purchases and balance transfers for the ďŹ rst nine cycles as long as the customer does not default under the Customer Agreement. Each Balance Transfer transaction will be assessed a 3% fee ($10 minimum and $75 maximum). Š 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (710226_04420)

InsideTucsonBusiness.com

APRIL 20, 2012

3

NEWS

More than half of Tucson streets in poor condition, how did they get so bad?

By Patrick McNamara Inside Tucson Business First of two parts.

Potholes, rutting, depressions, raveling, wash-boarding and all manner of cracking and deterioration line Tucson streets making the city a textbook for asphalt management.

Despite an annual budget of more than $20 million for street maintenance and repairs, more than 25 percent of major roadways and as much as 55 percent of residential streets are either failed or in poor condition, according to the city’s Department of Transportation.

Transportation officials say it would cost at least $20 million a year for 10 years to bring arterial and collector streets and intersections up to excellent condition.

Add another $64 million per year over a decade to bring residential streets to the same level and $20 million each subsequent year to maintain all streets at that level.

The decade-long undertaking would cost as much as $850 million.

How did things get to this point?

The favorite target of local elected officials has been the state Legislature, which they blame for sweeping money from special funds under its jurisdiction to fix the state’s own budget shortfalls. When it comes to roads they cite the loss of Highway User Revenue Funds (HURF), which primarily come from gas taxes.

“In order to balance the state budget, these funds have been swept,” said Tucson City Councilwoman Karen Uhlich. “The sweep of state funds of this type would typically have gone to road repair.”

Tucson Mayor Jonathan Rothschild echoes the claim.

“They have defined road repair as funding the Motor Vehicle Division and

CONTACT US

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

public safety,” Rothschild told a group of residents at a town hall event this month at the Ward 6 city council office. He was referring to the Legislature’s decision last year to pour more HURF money into the Department of Public Safety.

Although “sweeps” has become the prevailing pejorative in recent years, a readjustment in the state’s funding formula more accurately describes what has happened.

For example, during the 2006 fiscal year the state allocated nearly $70 million to the state Department of Public Safety from HURF funds. The following year, the Legislature changed the formula and the DPS allocation fell by almost $54 million.

When the DPS allocation declined,

Tucson has 9th highest sales tax rate, report finds

BIZ FACTS On Tuesday (April 24), the Tucson City Council is scheduled to discuss various options to pay for fixing and maintaining streets.

Transportation Department officials say they have more than 5,800 open work orders and a backlog of more than 4,000 repair requests for potholes. Their proposals to the council seek to find a dedicating funding source that would not only address the current issues but to maintain streets so they don’t further deteriorate.

STREETS continued on PAGE 6

CITY OF TUCSON STREETS & MAINTENANCE BUDGETS, 20012012 Fiscal year

Total

HURF

HURF as %

General Fund and COPS*

General Fund as %

2001

$21.43 million

$20.72 million

97%

$704,566

3%

2002

$21.59 million

$20.89 million

97%

$704,000

3%

2003

$21.91 million

$21.60 million

99%

-

0

2004

$21.57 million

$21.13 million

98%

-

0

2005

$46.86 million

$22.74 million

49%

$23.80 million

51%

2006

$26.28 million

$22.78 million

87%

$3.15 million

12%

2007

$29.51 million

$24.80 million

84%

$4.46 million

15%

2008

$32.48 million

$24.44 million

75%

$7.40 million

23%

2009

$24..09 million

$20.34 million

84%

$3.29 million

14%

2010

$18.77 million

$18.20 million

97%

$197,331

1%

2011

$20.74 million

$19.86 million

96%

$473,540

2%

2012

$21.24 million

$20.66 million

97%

$154,260

1%

*COPS: Certificates of participation, government issued securities Source: City of Tucson budgets

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAN GIBSON dgibson@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

Follow us: Twitter.com/azbiz | Twitter.com/BookOfLists | Facebook.com/InsideTucsonBusiness

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.

Among U.S. cities, Tucson has the ninth highest combined sales tax rate, at 9.1 percent, according to a new report from the Tax Foundation, based in Washington, D.C. The report looks at cities with a population of at least 200,000 residents, calculating the combined sales tax rate levied by state, county, municipal and special taxing jurisdictions.

Five of the highest sales tax cities are in Arizona, topped by Glendale at 9.5 percent, followed by Phoenix at 9.3 percent, Tucson, Mesa at 9.05 percent and Scottsdale at 8.95 percent. The state sales tax rate of 6.6 percent is the same for all all Arizona cities, with the differences being in local taxes.

Birmingham and Montgomery, both in Alabama, tied for the highest rate, at 10 percent. Glendale was tied with Chicago and Seattle for the second highest rate.

Among cities with reputations for having high sales taxes, New York ranked No. 14 with a rate of 8.875 percent, Los Angeles is 8.75 percent, San Francisco is at 8.5 percent and Honolulu is 4.5 percent.

The Tax Foundation acknowledged that sales taxes are only a part of an overall tax structure, noting that while Washington state has high sales taxes it has no income tax and that Oregon has no sales tax but high income taxes.

Pima College’s Flores out as of June 30 Pima Community College’s governing board on Tuesday unanimously agreed to end former Chancellor Roy Flores’ affiliation with the college as of June 30. In a three-paragraph letter Flores cited medical reasons for wanting to resign and begin his retirement.

Previously, Flores and the board had agreed to a plan that would have let him stay on the payroll another year, until June 30, 2013. But, according to the college, allegations of unprofessional conduct were brought against him March 26 by a number of former and current employees.

“Federal and state law, college policy and common decency require PCC to keep the allegations confidential. The college will not release the names of the individuals or the specifics of their allegations,” according to a statement.

Flores, who was chancellor from March 2003 to February 2012, has denied any wrongdoing.

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

6 9 10 11 12 12 14

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

16 17 18 19 20 20 23

4 APRIL 20, 2012

INSIDE TUCSON BUSINESS

NEWS Supervisors OK converting a Kino field to soccer FC Tucson, a minor league soccer team playing in its second season and its first in the Premier Development League, will have a home field at Kino Sports Complex, thanks to a unamimous vote this week of the Pima County Board of Supervisors.

In a quest to increase the number of fields considered playable for professional soccer, the FC Tucson’s management petitioned the county to allow them to use and manage a field currently used for baseball on the north side of Ajo Way across from Kino Stadium. FC Tucson will also take over an adjacent locker room facility.

As part of the conversion from baseball to soccer, which began on Wednesday, the field will have expanded bleacher seating for up 2,000 spectators. FC Tucson hopes to have the new facility ready to use in time for its first game, May 19 against the Southern California Seahorses.

FC Tucson officials say they also want to partner with youth and adult recreation teams to use the new soccer field.

Macy’s CEO: Retail’s new path to purchase is ‘omnichannel’ marketing

Gina Trunzo, Mark Stine to co-emcee Up & Comers Gina Trunzo and Mark Stine, cohosts of “Fox 11 Daybreak,” are the em2012 cees of the Up & Comers reception May 1 that will introduce the Class of S & COMER 2012. The honorees were unveiled in a special section in the April 13 issue of Inside Tucson Business.

Wednesday (April 25) is the deadline to register for the reception via one of three ways: online at www.InsideTucsonBusiness. com/upandcomers, call (520) 295-4236 or email advertising director Jill A’Hearn at jahearn@azbiz.com. The cost is $25 per person.

The reception will be from 5:30-7:30 p.m.

May 1 at the Lodge on the Desert. 306 N. Alvernon Way. Trunzo, who had been a weather anchor and entertainment reporter with KMSB since 2006, became co-host of the station’s new two-hour, 7-9 a.m. weekday, morning show when it was launched Feb 1. She has also been active in Tucson organizations including the March of Dimes, Leukemia and Lymphoma Association, American Red Cross, Therapeutic Riding of Tucson and she is a certified Tucson Ambassador, after undergoing training from the Metropolitan Tucson Convention and Visitors Bureau.

Stine has been in Tucson six years and had been weekend news anchor on KOLD 13 before being named co-host of the morning show. In fact Stine has to be a very early riser because he also co-anchors an earlier morning show, from 4:30-7 a.m. that airs on KOLD before the KMSB show starts.

Roger Yohem

UP

Terry Lundgren and wife Tina, with University of Arizona retail student Jill Moore, during an “innovative products” demonstration by Kraft Foods at this year’s Global Retailing Conference.

By Roger Yohem Inside Tucson Business Since 2006 and the depths of the Great Recession, Macy’s CEO Terry Lundgren has guided the giant retailer through an overhaul of its core business fundamentals. Based on the financial results, the reforms have paid off.

In 2011, Macy’s overall sales grew 5.3 percent to $26.5 billion. That was on top of a 4.6 percent increase in 2010. The growth has continued into 2012, with March ringing up another 7.3 percent increase.

That worries Lundgren, a University of Arizona alumnus who returned to his alma mater April 12 and 13 to lead the Global Retailing Conference at the JW Marriott Starr Pass Resort.

“The strategies we put in place are working. Yet I realize you can’t sit still on good performance. I worry more when we’re performing well than when we’re not performing,” Lundgren said. “When you’re doing well, others are watching and they’re going to try and emulate some things. To stay out in front, you have to continue to move forward, continue to change to continue to grow.”

Lundgren, who marks his office door in New York with a sign reading “Chief Cus-

tomer Officer,” is obsessed with making customer-centric business decisions. The economy is still challenged and technology is changing the lifestyle and shopping habits of consumers, he says.

Those conditions have Macy’s executive team trying to figure out where the industry is headed, where the opportunities exist, and how his company is going to capture sales.

To achieve that, Macy’s is evolving again, re-forming their business. With a core strategy called “MOM” — an acronym from My Macy’s, Omnichannel and Magic Selling, Macy’s is turning its attention to a huge new market that is unpredictable and difficult to reach.

“So where do we go next? We have a big opportunity with the millennials. At 70 million strong, this will be the biggest group we sell to, bigger than the baby boomers. Instantaneous. They always have a cell phone in hand. They are constantly connected. We have to figure out how to connect with this consumer,” he said.

Millennials, aged 13 to 30, are the first generation to incorporate technology into all aspects of their hourly lives. They are easily distracted, multitaskers, Twitter in real time, sleep with their smartphones, text while on the toilet, and already are

abandoning Facebook as old technology.

“This is a different customer, requiring us to do things differently to attract them.

We must be the place of choice for this consumer,” Lundgren said.

Macy’s sales strategy breaks millennials into two groups: those 13 to 21 and 22 to 30.

The executive team realizes that although they are proven experts in their specific fields of retailing, they don’t fully understand this audience.

How best to engage them? How do they shop? How can Macy’s stores be relevant?

Many of the answers and sales tactics are coming from Macy’s own employees. Thousands of millenials work in the company’s 800 stores.

“All our stores have this generation working for us. Asking employees who actually live this lifestyle is one of the greatest opportunities we have to learn who this customer is and how we can satisfy their needs,” he said.

Macy’s core MOM mission will be applied to shape the millennial retail effort.

As for the three parts of the MOM acronym, My Macy’s is the company’s drive to “be local” in each store As one of the changes since 2006, “this localization of product has been a major part of our success,” Lundgren explained.

InsideTucsonBusiness.com

APRIL 20, 2012

This Week’s

“You’ll see merchandise and styles here in Tucson that you won’t see in Chicago or Denver. The lifestyles are different. We want consumers to embrace the store that has a lifestyle they relate to on a local level,” he said.

Omnichannel means multidimensional messaging, being everywhere that customers are. It covers all connections: online, social media, mobile devices, inhome traditional media, in-store shopping, concerts, special events and others.

Whatever “path to purchase” a consumer uses, Macy’s wants to be in that path.

Magic selling “simply means never fail to astonish the customer. That’s easier said than done, so we are retraining all our 130,000 sales associates to step beyond their daily tasks and do whatever it takes to make the customer happy,” Lundgren said.

Technology has made many traditional marketing practices obsolete, forever changing the path to purchase. Every retailer is fighting for market share. As a result, Lundgren is leading another round of changes, “reorganizing away from the traditional structure.”

“This is just the beginning, we have a lot more work to do,” he said. “The results will be found in how we respond to this opportunity.”

Good News Best buy right now “If you want to buy low, foreclosureriddled Tucson may be just the place,” says Forbes magazine. “It ranks on this list.” The list it is keeping is titled “Best city to buy a home right now.”

The rankings are based on a kitchen-full of data analysis by Realtor.com and Fiserve Case-Shiller on 146 metropolitan areas.

It said Tucson stood out because home prices have dropped 45 percent from the market’s peak.

Coming in at No. 2 was Austin, Texas, but it wasn’t a case of being slammed by foreclosures but because of its thriving economy is creating jobs that will accelerate home values.

Rounding out the top 10: Kansas City, Mo.; Baltimore; Fort Worth, Texas; Salt Lake City; San Jose, Calif.; Raleigh, N.C.; Milwaukee, Wis.; and St. Louis.

The Tucson Roger Yohem

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

5

GGP, owner of Park Place Mall, has a business strategy that promotes monthly events.

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

Macy’s hires UA talent

Shopping malls have a bright ‘social’ future as retail, technology merge

By Roger Yohem Inside Tucson Business Shopping malls have a bright future by featuring some old-fashioned socializing while capitalizing on struggling strip centers. As “the” gathering place, much like town squares of yesteryear, malls will prosper regardless of how technology changes consumers.

“The mall will survive long term. It is still the best American pastime. And to make sure, we have started to be very focused on local activity, activity that people will come to,” said Sandeep Mathrani, CEO of General Growth Properties (GGP), at the Global Retailing Conference last week at the JW Marriott Starr Pass Resort.

Among its properties, GGP owns Tucson Mall and Park Place Mall. While in Tucson he visited the Chalk Art Festival at Park Place. To attract people “the old fashioned way,” most GGP malls stage some type of monthly community event such as the fes-

tival.

“Everyone obsesses with social media, we’re putting the social into our malls. We’re not ignoring social media, we want different programs so the mall is an activity center,” Mathrani said.

Nationally, malls will benefit due to a proliferation of aging shopping centers.

As Internet sales grow and big-box store anchors restructure and downsize, shopping centers will underperform.

“Best Buy is a 45,000 square-foot store where people go to view products but buy online. The suggestion I gave their CEO was downsize to 15,000 square feet and come into our mall because we actually have foot traffic,” Mathrani said.

Retail failures such as Blockbuster, Circuit City and Borders have taught developers a hard lesson: quit building.

Growth will come “because we stop increasing our base,” said Mathrani.

“I am a big proponent of putting grocery stores into the mall. In fact, malls

should incorporate all uses. Grocery stores went into strip centers because it was convenient, easy and there were so many of them. That is changing,” he said.

To complement their traditional tenants, GGP has drawn from strip centers, including retailers such as Dick’s Sporting Goods, REI and Whole Foods. Tucson’s Park Place is adding Tyco Electronics and Total Wine & More.

From April 2009 to September 2010, GGP was in Chapter 11 bankruptcy reorganization. GGP has 130 malls, second-most in the U.S., and averages 94 percent occupancy.

Mathrani was hired in January 2011.

“Over time, malls will continue to get stronger. Malls will thrive by bringing in all fragmented uses, whether it’s big box, fashion or foreign retailers coming here,” he said. “The American pastime of shopping is not going to go away.”

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

Just since January, Macy’s has hired 32 University of Arizona students, which makes it the largest recruiter on campus. Most of the hires are graduates of the UA’s Terry J. Lundgren Center for Retailing and the Eller College of Management.

Lundgren was back in Tucson last week to lead the annual Global Retailing Conference. He proudly boasted of the recruits and encouraged other executives in the room including the Home Depot, PetSmart, Bridgestone Firestone, Avnet, American Express, REI, General Growth Properties, Walgreens and Walmart, to follow his lead.

Plug-in car mileage If you’re in Tucson and have an electric car, say a Nissan Leaf, you’re probably feeling good about reducing your carbon footprint. But by how much? The Union of Concerned Scientists released a report this week with the answer.

Driving a Nissan Leaf in Tucson is the same as driving a gas-powered car that gets 48 miles to the gallon. That means it’s about the same as a Toyota Prius.

What? Electric cars have zero emissions, right? The scientists did their calculating based on how electricity is produced and a significant portion of Tucson’s power is generated by coal.

In Colorado it’s worse. Driving an electric car there is the equivalent of driving a car that gets 33 miles to the gallon, one of the worst rates in the country.

6 APRIL 20, 2012

INSIDE TUCSON BUSINESS

STREETS continued from PAGE 3

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

BANKRUPTCIES Chapter 11 Business reorganization Curtis A. Ench and Mary J. Alexander, 1710 E. Waverly St. Principal: Curtis A. Ench and Mary J. Alexander, joint debtors. Assets: $823,382.00. Liabilities: $788,066.00. Largest creditor(s): Wells Fargo Home Mortgage, Frederick, Md., $346,025.00. Case No. 1207736 filed April 12. Law firm: Eric Slocum Sparks

FORECLOSURE NOTICES Broadmoor Executive Center LLC 209 S. Tucson Blvd. 85714 Tax parcel: 129-02-091B and 129-02-091D Original Principal: $1,150,000.00 Beneficiary: Bank of Tucson Auction time and date: 11 a.m., June 29, 2012 Trustee: Ronald M. Horwitz, Jaburg & Wilk, 3200 N. Central Ave., Suite 2000, Phoenix WMS Partners Limited Partnership 5997 E. Grant Road 85712 Tax parcel: 110-16-048A0 Original Principal: $650,000.00 Beneficiary: Bank of Oklahoma Auction time and date: 10 a.m., July 10, 2012 Trustee: Craig H. Kaufman, Quarles & Brady, 1 S. Church Ave., Suite 1700

LIENS Federal tax liens Ali Baba Enterprises LLC, 5401 N. Ventana Vista Road.

Amount owed: $9,150.74.

Goodspeed USA Corp., 7900 N. Snyder Road 7203. Amount owed: $15,431.96.

Swim Girl Inc., 2470 W. Tom Watson Drive.

Amount owed: $3,515.73.

Art By God Inc., 1635 N. Oracle Road.

Amount owed: $8,332.88.

Autoworld of Tucson Inc., 2411 W. Wetmore Road.

Amount owed: $5,984.63.

Pony Express Concrete Curbs LLC and Jose J. Mendivil Jr., 4565 W. Teton Road. Amount owed: $40,528.64.

A Dream Come True Preschool and LopezFierro Investments LLC, 6163 S. Midvale Park Road. Amount owed: $6,734.58.

Crystal Auto Glass Enterprises LLC, 2766 N. Country Club Road. Amount owed: $534,446.70.

Simmons Home Design Inc., 2201 N. Camino Principal, Suite 101. Amount owed: $30,359.65.

Drake & Son Auto & Truck Parts and Drake & Son Inc., 4220 E. Illinois St. Amount owed: $10,235.17.

Venture-N Inc., 1239 N. Sixth Ave. Amount owed: $30,492.34.

the portion to cities, towns and counties increased by a nearly equal amount — $52 million.

By fiscal 2009, the state altered the formula once again, boosting the HURF contribution to public safety from $13 million to nearly $87 million.

At the same time, city and county shares of the HURF pie shrunk by $78 million. The legislature has maintained the higher funding level for public safety since 2009.

Local HURF allocations reflect those changes, with the city reaching a high-water mark of $50 million in fiscal 2006 and $49 million the following year.

In subsequent years the funding has fallen, as Tucson received $43 million in fiscal 2011, the same level of funding as 2002.

But less than half of that money goes directly into streets maintenance. The remainder of HURF money gets dispersed throughout the city Transportation Department’s budget, to the non-departmental budget, paying for salaries and debt on previous roadway construction projects.

For the current budget year, the city Department of Transportation’s streets maintenance sector has a $21 million budget, almost all of which comes from the HURF fund.

In addition to repairing roadway surfaces, the sector also maintains the city’s median islands, drainage ways, traffic lights, street signs, roadway lighting and street striping.

More than $11 million of the streets maintenance budget goes toward salaries and benefits.

The condition of Tucson’s streets likely isn’t a phenomenon born of changes in the state’s funding formula alone.

City Councilman Steve Kozachik says much of the blame falls on City Hall rather

HISTORY OF HURF Fiscal year

Pima County

2001

$38.65 million

2002

$37.21 million

2003

$37.72 million

2004

$39.83 million

2005

$41.76 million

2006

$43.29 million

2007

$44.56 million

2008

$44.06 million

2009

$41.21 million

2010

$38.74 million

2011

$38.97 million

City of Tucson $46.22 million $43.76 million $44.38 million $46.71 million $48.86 million $50.53 million $49.55 million $48.97 million $45.97 million $43.09 million $43.30 million

Source: Arizona Department of Transportation

than the state Capitol.

“The city is absolutely culpable for the condition of the roads because we’ve let them go to hell,” Kozachik said, saying the city has for years not placed adequate emphasis on maintenance to prevent roads from falling into the state of disrepair that exists today.

Transportation officials agree that roads maintenance has not been emphasized in the past.

“There’s never really been a dedicated source of O and M (operations and maintenance) funding,” said Tony Paez, interim director of city transportation.

Paez said in the past the department was able to maintain a patchwork of repairs with the money it got, but the lower state funding levels have made that impossible now.

Deficient funding has been evident for years, even at times when the city received record-levels of funding from the state, according to the city’s own financial plans.

The city’s five-year capital improvement

plan from 2006 identified $3 billion worth of needed roadway improvements.

“This large backlog is the result of incomplete infrastructure — minimal sidewalks, street lighting, and inadequate draining — that is the legacy of not imposing development standards, a lack of planning, and a continuous deferral of annual maintenance,” according to the section on unmet capital needs in the 2006 capital improvement plan.

Uhlich agreed that the changes in state funding alone can’t take all the blame for the city’s deteriorating streets.

“Even if the state hadn’t swept the funds, we would probably be having this conversation,” she said.

Uhlich suggested the council might need to reevaluate spending priorities in the coming budget discussions for fiscal 2013 to reflect priority on “core service” areas.

For example, the city puts little from the general fund into the transportation department. The general fund is the portion of the budget used to fund departments like police, fire and others that don’t generate revenue of have alternative sources of income.

In the case of streets maintenance, the general fund makes up just one percent of the $21 million budget.

By contrast, the general fund contribution to the Sun Tran bus system has grown from nearly $16 million in fiscal 2001 to potentially more than $40 million proposed for next year.

Uhlich said she and other council members would try to keep the subsidy to Sun Tran at a constant while working to find solutions to the streets maintenance issue.

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

(Liens of $1,000 or more filed by the Arizona Department of Revenue or Arizona Department of Economic Security.)

Casa Vida LLC, 6334 E. Barnan St. Amount owed: $1,298.56.

Rhino Linings of Southern Arizona LLC, 1802 W. Grant Road, Suite 104. Amount owed: $58,160.81.

Amarsi LLC, 9642 E. 32nd St. Amount owed: $52,261.28.

Athens Dining LLC, 6650 N. Oracle Road #111. Amount owed: $21,710.87.

Dorado Painting LLC, PO Box 1808, 85702 (465 E. Delano St.). Amount owed: $5,148.21.

Avila Concrete LLC, 4320 E. Illinois St. Amount owed: $21,850.65.

Masonry By Design Inc., 4101 W. Barque Drive. Amount owed: $12,783.41.

Patrick McNamara

State liens

Where the pavement ends: The Tucson Airport Authority recently resurfaced its roads like this one on Plumber Avenue. The authority laid new asphalt up to where the city’s right-of-way begins.

Corrections

Mechanic’s liens

• Frederick Petersen’s last name was misspelled in a headline and on the front page of the Up & Comers special section in the April 13 issue.

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

• The website address for the Body and Sol Old Pueblo Women’s Expo is www.bodyandsoltucson.com. The URL was wrong under the “Biz Facts” associated with a story about the inaugural event that appeared in the April 13 issue.

Bluelight Electrical against Mahalo Properties LLC. Amount owed: $1,200.00.

Oracle Control Systems Inc. against SPVEFRCMG Broadway Gardens LLC. Amount owed: $21,680.91.

• Contrary to information originally received and printed in the April 13 Meals & Entertainment column, the reverse happy hour at North restaurant is from 10 p.m.-12:30 a.m. Fridays and Saturdays only.

InsideTucsonBusiness.com

APRIL 20, 2012

NEXT GENERATION

By Patrick McNamara Inside Tucson Business

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

University of Arizona

In cancer treatment, detection is just the first step.

Researchers at the University of Arizona Cancer Center and biomedical engineering have been working to find new, non-invasive ways of identifying cancerous tumors at the molecular level.

A research team led by Mark “Marty” Pagel, associate professor in biomedical engineering and chemistry, has won a $2 million grant from the National Institutes of Health to refine magnetic resonance imaging technologies to monitor the lactic acid levels of cancerous tumors.

“Tumors are very metabolically active,” Pagel said. “The problem is we don’t know how much lactic acid is in anyone’s tumor.”

The lactic acid content of tumors is key to Pagel’s and his associates’ research.

Certain tumors display different levels of acid, which can determine the best course of treatment for a patient.

Lactic acid content is also important because as tumors produce the substance, the acid breaks down the surrounding tissue enabling the cancer to spread.

In conventional treatments, MRIs are used to locate tumors but are of limited use in discerning their make-up. If the research Pagel and others have begun proves a success, the potentially most successful treatments for cancer would be identified early in the process.

“If we can tell a patient in three days that the chemotherapy isn’t working and get them on a different treatment, that will help greatly,” he said. “We don’t want to wait three or six months.”

As Pagel explains it, tumors have specific molecular compositions depending on where they occur and what type of cancer causes them. The process would be much less invasive than taking physical samples.

The diagnostic method Pagel and other researchers are working on would involve injecting patients with a contrast medium, specifically an already approved compound of iopromide typically used in X-rays and CT scans. That the chemical can be used in Pagel’s research is a significant benefit that likely will speed along the research and potentially enable any new treatment techniques discovered in the process to become available to patients sooner.

“It’s a huge advantage because now we’re ready for chemical trials,” Pagel said.

Part of the research will involve monitoring the tumors in breast cancer patients.

The patients will be given a course of treatment that includes drinking baking soda, which has been thought to help in the treatment of certain cancers.

Baking soda may lower the acid levels in the body and tumors and slow or inhibit the spread of cancer. Pagel said the research would, in part, attempt to observe and record any changes in the acid levels of tumors in the patients.

The team has been experimenting with mice implanted with human cancer cells to measure the effectiveness of the process.

The research has been at least four years in the making, Pagel said.

Trials in human patients will begin later this year in Phoenix.

The research will begin in Phoenix because of the availability of a specialized MRI machine. Pagel said the UA Cancer Center plans to purchase a similar machine soon so that research can continue in Tucson, which he said is ideally suited for the work.

“This research couldn’t be done at most other universities,” Pagel said.

The presence of medical and cancer centers, biomedical engineers, medical imaging facilities and graduate students to help conduct the research gives the university an advantage in this sort of research, Pagel said.

“Where else do you find this environment with all these disciplines within walking distance,” he said.

In addition to the federal grant, the Community Foundation of Southern Arizona and the Phoenix Friends of the Arizona Cancer Center gave private donations to help fund the research.

A lab experiment at the UA Cancer Center where researchers are working on an MRI method to measure acid levels in tumors.

University of Arizona

UA researchers win grant to use MRIs to monitor lactic acid in tumors

UA associate professor Mark “Marty” Pagel at work in the laboratory.

7

8 APRIL 20, 2012

INSIDE TUCSON BUSINESS

SALES SALES JUDO

Figuring out what to pay new revenue producers as they get in gear It can be a challenge for employers to build a compensation plan for new producers as they ramp-up their revenues.

Traditionally, most insurance agencies, real estate firms and automobile dealerships have gone with commissions only.

On the surface at least, this practive would appear to make good sense.

If your new producers are any good, they’ll make enough money to survive and perhaps even to thrive. You, the employer, can afford to have them on board because they are paid directly out of the gross margins that they generate. If they don’t produce, you don’t pay them. In this system of Darwinian natural selection, you don’t even have to fire them! If they don’t produce, they’ll quit and move on to other employment opportunities. This often results in what is called a “burn and churn” work environment.

Commissions can work even in cases where the job may be more of a hobby for a producer who has other sources of income from spouses, military pensions or “moonlight” jobs. You as the employer are still ahead of the game if a low-volume producer sells just a few policies, homes or cars a year to friends or relatives because the lower production of the bottom 90 percent is more than offset by the hyperproduction of the top 10 percent. Just look to the real estate industry for confirmation of this phenomenon.

Beyond that, there seem to be very few visible “hard” costs associated with “burn and churn” or “low volume” strategies for 100 percent commissions. After all, the costs of your human resources and training departments are all fixed no matter how

many producers come and go. So are the costs of your sales managers regardless of the presence of low volume producers.

This approach SAM WILLIAMS can be seductive, but we all know that, while there may not be clearly visible “hard dollar” costs associated with “churn and burn” or “low volume” producers, there are usually large “soft dollar” opportunity costs. This is especially the case if you are attempting to build relationships with your customers and a positive brand image that leads to word-of-mouth referrals and to repeat purchases.

So, how can you build a “pay-for-performance” culture with less producer turnover and lower opportunity costs?

Begin with your selection processes for producers. First determine what kind of producer you need: a “Hunter” for prospecting and bringing in new accounts; a “Farmer” for retaining and penetrating existing accounts, or; a “Technical Specialist” for closing prospects, servicing existing accounts and helping to sell new services.

Then use a commercial profiling instrument to make certain that a candidate has the right profile for the position.

After all of the other interviewing and HR steps have been completed, apply the right mix of variable (commission) and fixed (base) compensation for each type of producer.

{ Teaching by example. That’s what we’re all about too. } With more plans and dentists to choose from, at prices you can afford, we are proud to have insured healthy, happy smiles in Arizona for the past 40 years!

Every Smile Matters. Get Delta Dental.

MySmileAZ.com

FIRSTYEAR PRODUCER COMPENSATION 1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1.

Monthly $ revenues

$21,000

$63,000

$146,000

$208,000

2.

Quarterly $ revenues

$63,000

$188,000

$438,000

$625,000

3.

Annualized $ revenues

$250,000

$750,000

$1.75 million

$2.5 million

$2,000

$6,000

$13,000

$19,000

$3.5 million

$3 million

$2.5 million

$2 million

4.

% commission

3%

5.

Quarterly $ commission

6.

Monthly base compensation

7.

Quarterly base compensation

$11,000

$9,000

$8,000

$6,000

8.

Total quarterly compensation

$13,000

$15,000

$21,000

$25,000

9.

Annualized compensation

$52,000

$59,000

$83,000

$100,000

10.

11.

Annual target compensation % of target compensation

$100,000 52%

In this case we’re building a compensation plan best suited for Hunters. It begins with a reasonable base salary that declines as commissions ramp up during their first year. It ends in the fourth quarter with a mix of 25 percent base and 75 percent commissions.

This particular example takes into account that new producers may take four quarters before they reach annualized revenues of $2.5 million (row 3, column 4). If all they received during their first year was a base salary of just $2,000 per month and a commission of 3 percent, the good ones might not join the company to begin with.

And, if they did, they might jump ship as soon as they found a company with a more reasonable first year compensation package.

In order to prevent this, the plan designer estimated the “ramp up” revenues for an average new producer would be $63,000 in the first quarter; $188,000 in the second; $438,000 in the third and $625,000 in the fourth quarter (row 2). At that point the producer’s annualized revenues would have reached $2.5 million. Please note these “ramp up” figures must be realistic and achievable. The plan designer has also determined through research that an average performer should be able to earn an annual targeted compensation of $100,000 (row 10).

In the first quarter, new producers receive commissions of just $2,000 (row 5) and an elevated quarterly base salary of $11,000 (row 7) for a total of $13,000 or 52 percent (column A, row 11) of their targeted compensation. Note that in many U.S. markets this amount may not be enough to attract strong producers, and their base may need to be increased to a starting figure of $5,000 a month or higher.

Another method that is frequently used involves offering especially promising producers a “signing bonus” of $5,000 to $10,000 to tide them over as their revenues and commissions ramp up.

59%

83%

100%

In the second quarter new producers are expected to generate $188,000 in revenues and $6,000 in commissions, which is $4,000 more than in the first quarter. The quarterly base drops by $2,000 to $9,000 but the total compensation increases by $2,000 to $15,000, roughly 60 percent of targeted compensation.

The same process, where base compensation declines as commissions increase, repeats itself in the third and fourth quarters.

By the end of the first year new producers should be up to speed and generating $208,000 in monthly revenues, $2.5 million annualized. Their quarterly commissions should have increased to $19,000. That, plus their quarterly base of $6,000 comes to a total of $25,000, which is 100 percent of their targeted compensation.

As the producer exceeds targeted revenues in 10 percent increments, the plan designer can add bonuses on top of the regular commissions. The designer should never cap producers’ compensation at some fixed amount or decrease the commission percentage as their revenues increase, despite the stratospheric pay that a few hyper-producers will generate.

Remember, this is known as a “rich man’s problem,” because the variable contribution they generate exceeds by multiples of what they are paid.

In the continuation of the series on how to attract, retain and motivate — in other words, ARM — your revenue producers, in the May 4 issue we’ll tackle legal agreements with producers dealing with non-compete and non-solicitation provisions, commissions paid after departure and the reimbursement of expenses.

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

InsideTucsonBusiness.com

APRIL 20, 2012

9

*:0.;< 5847A.:; 26 $7=<1.:6 :2B76* #*63

=;26.;; --:.;;

"176.

758*6A 5*24 (.+;2<.

":7-=,<; $.:>2,.; !//.:.-

"*:.6< 758*6A .*-9=*:<.:;

%78 7,*4 @.,=<2>.;

).*: ;<*+4 7,*44A

&62>.:;2<A 7/ :2B76* # D2;83 E4 'C4

(D2B>= .

# 0A8I>=0 43D

)=8E4AB8CH ;4E4; 43D20C8>=

(D2B>=

D64=4 '0=34A

#*A<1.76 2;;24. $A;<.5;

4A<0=B &3 (D2B>= .

?A>3D2CB A0HC74>= 2>< A0HC74>= 2><

454=B4 0=3 04A>B?024 BHBC4<B 2><?0=H

+0;C70< "

(0H;>A + !0FA4=24

*>2; 76<1*6 2: 7:,. *;. # (D2B>= .

# 3< 05 <8;

8A >A24

)=8C43 'C0C4B 8A >A24 (74 %4=C06>= A;8=6C>= >D=CH *8A68=80

>; >7= 74AA4H

"25* 7=6<A

+ >=6A4BB 'C (D2B>= .

# ?8<0 6>E

>E4A=<4=C

(D2B>=

K 7D2:K D2:4;14AAH

%=,;76 &62/2.- $,1774 2;<:2,<

C7 'C (D2B>= .

F41<0BC4A CDB3 >A6 CDB3 >A6

3D20C8>= 5>A 6A034B

(D2B>=

>7= %4382>=

& $ :5A 6<.4420.6,. .6<.: 7/ @,.44.6,. *6- 7:< =*,1=,*

) ' A<H =C4;;864=24 4=C4A # >AC D027D20 .

0A<H <8; 8=5> >A60=8I0C8>= 7D027D20

"D;C8 <8BB8>= A<H 8=BC0;;0C8>=

) ' A<H +0B78=6C>=

A466 %>CC4A

&62>.:;2<A 7/ :2B76* .*4<1 .<?7:3

9> +0H (D2B>= .

# D0740;C7 2><

(F> 02034<82 7>B?8C0;B 0=3 C748A 0558;80C43 2;8=82B 0 740;C7 ?;0= 38E8B8>= 0=3 C74 <43820; ?A02C824 >5 ?7HB8280=B 5A>< C74 ) >;;464 >5 "43828=4

(D2B>=

>38 "0=B584;3

2<A 7/ %=,;76 + ;0<430 (D2B>= .

# CD2B>=0I 6>E

>E4A=<4=C

(D2B>=

>=0C70= &>C7B278;3 &8270A3 "8A0=30

$<*<. 7/ :2B76*

+ +0B78=6C>= %7>4=8G .

# 0I 6>E

>E4A=<4=C

%7>4=8G

0= A4F4A

:..87:< , 7:*6 788.: 74- 6,

# 4=CA0; E4 %7>4=8G .

52G/2><<D=820C8>=B 5<8 2>< 52G 2><

"8=8=6 >5 2>??4A 6>;3 0=3 <>;H134=D<

%7>4=8G

&8270A3 3:4AB>= 0<4B & ">554CC

-.,,7 5847A5.6<

' +8;;80<B ;E3 'C4

(D2B>= .

6;>A80A827 03422>=0 2>< 03422>DB0 2><

'C0558=6 064=2H

;0CC1AD66 'F8CI4A;0=3

;>A80 &827 455 0=;4H

*:76-.4.< .*4<1 .<?7:3 # >A14B ;E3 (D2B>= .

2><<4=CB 20A>=34;4C >A6 20A>=34;4C >A6

=?0C84=C 0=3 >DC?0C84=C 740;C7 20A4 B4AE824B

(D2B>=

0<4B 42:<0==

%=,;76 .-2,*4 .6<.: % .*4<1,*:.

A0=C &3 (D2B>= .

# C<20I 2><

D;; B4AE824 =>=?A>58C 02DC4 20A4 2><<D=8CH 7>B?8C0;

(D2B>=

D3H &827

$7=<1.:6 :2B76* ' .*4<1 *:. $A;<.5

' '8GC7 E4 (D2B>= .

# CD2B>= E0 6>E

C40278=6 7>B?8C0; ?A>E838=6 ?A8<0AH 20A4 0=3 B?4280;CH 20A4 8= BDA64AH <43828=4 =4DA>;>6H 0=3 <4=C0; 740;C7

+0B78=6C>=

>=0C70= 0A3=4A 0H4=3A0 '707 0C84 !0=3F47A

$=66A;2-. &62/2.- $,1774 2;<:2,<

8=C4A &3 (D2B>= .

# BDB3 >A6

3D20C8>= 5>A 6A034B

(D2B>=

&8270A3 >;4

$ # ! 6, +8;;80<B 8A 'C4 (D2B>= .

# 0B0A2> 2><

"8=4A B<4;C4A 0=3 A458=4A >5 2>??4A 0=3 <>;H134=D<

%7>4=8G

"0=D4; &0<>B

5812<1.*<.: &62/2.- $,1774 2;<:2,<

+ +4C<>A4 &3 (D2B>= .

79D0A4I 0<?78 2>< 0<?78 2><

3D20C8>= 5>A 6A034B

(D2B>=

*82:8 " 0;4=C8=4

2<2 ' &8C0 &3 (D2B>= .

# 28C8 2><

0;; 24=C4A B4AE8=6 2A438C 20A3 0=3 <>AC6064 2DBC><4AB

'0= =C>=8> (,

&0=3H "2 >=0;3

"25* 755=62<A 744.0.

A>03F0H (D2B>= .

8=5>24=C4A ?8<0 43D ?8<0 43D

8A42C 4<?;>H<4=C 0=3 D=8E4AB8CH CA0=B54A 2A438C 346A44B 03D;C 43D20C8>= 0=3 C74 4=C4A 5>A (A08=8=6 0=3 4E4;>?<4=C

(D2B>=

'DI0==4 "8;4B

$1*5:7,3 *:5;

+ &DC7A0D55 &3 (D2B>= .

78A>G84 B70<A>2:5>>3B 2>< B70<A>2:50A<B =4C

%A>3D28=6 0=3 38BCA81DC8=6 CA038C8>=0; 0=3 >A60=82 <8;: 0B F4;; 0B F78??8=6 2A40< B>DA 2A40< 2>CC064 2744B4 824 2A40< 0=3 5A>I4= =>E4;C84B

%7>4=8G .

82: 4=34A

%*:0.< $<7:.; &8C0 %0A: A (D2B>= .

# C0A64C 2><

&4C08;

"8==40?>;8B "#

&H0= 0=B>=

#

7:<1?.;< .-2,*4 .6<.: # !0 7>;;0 ;E3 (D2B>= .

:8<14A;H 278<4=4 =>AC7F4BC<43820;24=C4A 2>< =>AC7F4BC<43820;24=C4A 2><

2DC4 20A4 7>B?8C0;

A0=:;8= (#

4E8= 'C>2:C>= &>= %0CA82:

& $ "7;<*4 $.:>2,.

' 74AAH14;; 'CA0E (D2B>= .

# DB?B 2><

"08;8=6 B4AE824B

+0B78=6C>=

!0AAH 0<4B

%=,;76 4.,<:2, "7?.: A>03F0H (D2B>= .

# C4? 2><

)C8;8CH 4;42CA82 B4AE824

(D2B>=

%0D; >=0E80

'*24 &62/2.- $,1774 2;<:2,<

4=B>= FH *08; .

# E08; : 0I DB

3D20C8>= 5>A 6A034B

*08; .

0;E8= 0:4A

:2B76* 2: *<276*4 =*: %4A8<4C4A +0H (D2B>= .

# 0I6D0A3 6>E 7@D0=6

867C4A ?8;>C CA08=8=6 >A60=8I0C8>=

=3A4FB "

>;>=4; "82704; "2 D8A4 >;>=4; 3F0A3 % "0GF4;;

&62$7=:,. 6.:0A 7:87:*<276 A>03F0H (D2B>= .

# D=B 2><

)C8;8CH

(D2B>=

%0D; >=0E80

'.6<*6* .-2,*4 $A;<.5; 6,

==>E0C8>= %0A: A $A> *0;;4H .

8=5> E4=C0=0<43 2>< E4=C0=0 2><

8B2>E4AB 34E4;>?B 0=3 34;8E4AB <43820; 3806=>BC82 BHBC4<B 0=3 B;834 10B43 20=24A C4BCB

>55<0==

!0 &>274 !C3 0B4; 'F8CI4A;0=3

"0A0 B?8=0;;

75. .87< %024B 4AAH &3 C;0=C0

# 7><434?>C 2><

&4C08; ;D<14A 70A3F0A4 0=3 60A34= BD??;84B

C;0=C0

(8< %548554A

# 10B70B 2><

&4C08; 6A>24A84B

70=3;4A .

0A; =34AB>=

*;1*;C *524A 7/ $<7:.; ' 0B70 &3 70=3;4A .

760 #.*4<A 758*6A &8E4A &3

8=5> ;>=6A40;CH 2><

&4B834=C80; 0=3 2><<4A280; A40; 4BC0C4 A4;>20C8>= B4AE824B C8C;4 8=BDA0=24 <>AC6064 ;4=38=6 0=3

"8==40?>;8B "#

&>B4H >14A;48=

#!

#!

#!

7 7/ % 7,*4 5847A..;

(D2B>= .

;>=6A40;CH 2>< 2><?A474=B8E4 8=BDA0=24 5>A 8=38E83D0;B

"4A64A >5 )=8E4AB8CH "43820; 4=C4A 0=3 )=8E4AB8CH %7HB8280=B 40;C720A4 =C4A8< <0=064A &0=:43 1H C74 =D<14A >5 5D;; C8<4 4@D8E0;4=C ;>20; 4<?;>H44B % ( ( &0=:43 8=5>A<0C8>= 8B ?A>E8343 1H 1DB8=4BB A4?A4B4=C0C8E4B 0C => 270A64 0=3 8B A0=:43 0;?7014C820;;H 8= 20B4 >5 C84B $C74A 1DB8=4BB4B F4A4 2>=C02C43 1DC 48C74A 342;8=43 >A 383 =>C A4B?>=3 1H 3403;8=4 (74A4 8B => 270A64 C> 14 8=2;D343 8= =B834 (D2B>= DB8=4BB ;8BC8=6B # =>C ?A>E8343 +# F>D;3 =>C 38B2;>B4 #! =>C ;8BC43 ;0BC H40A #& ;8BC43 ;0BC H40A 1DC A0=:8=6 2A8C4A80 =>C ?A>E8343

10 APRIL 20, 2012

OWNER RETIRING

AUCTI N

FLOATING STONE INN & AQUA SPA

! ( ' $# * ) ' %" 3 +", .%)$ /-%)"-3 *)%2"! .", %'., .%*) 3 *. ' )%.3 + **'-

3 *$ -- $" 3 0"). ").", 3 %)/."- #,*( / -*) 3 %-.*,% %."

877-895-7077 877 895 7077

natcomauctions.com

/1",- ,"(%/( ,*&", ,.% ,*&" & , ,.%% %+ .%*) ,*&", '' #*, )-+" % .%*) ,*&&", %+ .%

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

INSIDE TUCSON BUSINESS

MEDIA

Matt Russellâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;On The Menuâ&#x20AC;&#x2122; finds new radio home on KNST

By David Hatfield Inside Tucson Business After nine weeks off radio, Matt Russell will return his weekly â&#x20AC;&#x153;On the Menu Liveâ&#x20AC;? show to the airwaves starting May 12; this time airing from 4-5 p.m. Saturdays on KNST 97.1-FM/790-AM. Russell says he couldnâ&#x20AC;&#x2122;t be more excited about his return and the fact that his show will now be exposed to the much larger audience available on KNST, which is owned by Clear Channel. â&#x20AC;&#x153;On the Menu Liveâ&#x20AC;? last aired March 8 on KWFM 1330-AM, where it had aired at 5 p.m. Thursdays since 2009 (and before that was a show hosted by former Tucson chef Alan Zeman). At the time he pulled the plug on the show, Russell said KWFMâ&#x20AC;&#x2122;s management had â&#x20AC;&#x153;created an environment that makes it virtually impossible for us to continue working with them.â&#x20AC;?

After that, Russell said he had been in contact with several stations but the relationship with KNST â&#x20AC;&#x153;just felt right.â&#x20AC;?

Although Russell had initially balked at the idea of moving the show to weekends, the 4-5 p.m. time slot made a difference. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m in the sweet spot, itâ&#x20AC;&#x2122;s still happy hour,â&#x20AC;? he said.

Other than the new station and time slot, Russell said the show will continue to be high-energy, focusing on the latest trends in the food and wine scene in Tucson, featuring interviews with restaurateurs, celebrity chefs and mixologists as well as â&#x20AC;&#x153;Tucsonâ&#x20AC;&#x2122;s most colorful culinary characters.â&#x20AC;?

Remote broadcasts also will continue to be a part of â&#x20AC;&#x153;On the Menu Live.â&#x20AC;?

The move appears to be among a few other changes KNST is making to its schedule. Currently, KNST is airing the weekend edition of the Glenn Beck show from 4-6 p.m. Saturdays.

Attempts to reach station officials to talk about the potential changes were unsuccessful.

To be clear Weâ&#x20AC;&#x2122;ll find what youâ&#x20AC;&#x2122;re looking for.

Because we know the market.

And we know the right people.

And weâ&#x20AC;&#x2122;re watching.

Carefully. Intently. Constantly.

CORPORATE REAL ESTATE SERVICES 3709 N. Campbell Ave, Suite 201 | Tucson, AZ 85719 | 520.881.8180 | FAX 520.881.5844 Contact us at 1.800.831.4090 or at www.cotlow.com | Dean P. Cotlow Cotlow@cotlow.com

On the subject of Russellâ&#x20AC;&#x2122;s departure from KWFM, last month he said the station had raised its price to him by 40 percent. As a point of clarification, KWFM operations manager Alan Michaels says the station didnâ&#x20AC;&#x2122;t raise its rates for brokered radio shows but had found that â&#x20AC;&#x153;On the Menuâ&#x20AC;? wasnâ&#x20AC;&#x2122;t being billed for the costs of doing the show at remote locations. Remote fees are typical in broadcasting.

From Russellâ&#x20AC;&#x2122;s point of view, he said the proposal to carry his show always included the fact that it would have remote broadcasts and was â&#x20AC;&#x153;presented as a packageâ&#x20AC;? from the very beginning.

Murrow Award winners Tucson TV stations were recipients of five 2012 regional Edward R. Murrow Awards from the Radio Television Digital News Association. KGUN 9 won three awards and KVOA 4 and KOLD 13 each received one.

The stations competed among what are considered small market stations in a region covering Arizona, Colorado, New Mexico, Utah and Wyoming.

The winning entries: â&#x20AC;˘ Best newscast: KGUN for its 10 p.m. newscast the night of Jan. 8, 2011, after the shooting at former U.S. Rep. Gabrielle Giffordsâ&#x20AC;&#x2122; â&#x20AC;&#x153;Congress On Your Cornerâ&#x20AC;? event. â&#x20AC;˘ Investigative reporting: KGUN for reports on Pima Community Collegeâ&#x20AC;&#x2122;s handling of Giffords shooting suspect Jared Loughner, who had been a student. â&#x20AC;˘ Breaking news: KVOA for its coverage of the Jan. 31, 2011, crash of a Pima County Sheriff â&#x20AC;&#x2122;s Office helicopter in which pilot Loren Leonberger was killed and three others were injured. â&#x20AC;˘ Hard news report: KOLD for a report titled â&#x20AC;&#x153;Desperation in the Desertâ&#x20AC;? on the trials of repatriation of illegal border crossers being returned to Nogales. â&#x20AC;˘ Website: KGUN for www.kgun9.com.

There were no radio entry award winners from the Tucson market this year.

The awards are named after Edward R. Murrow, who according to the Museum of Broadcast Communications in Chicago, is â&#x20AC;&#x153;the most distinguished and renowned figure in the history of American broadcast journalismâ&#x20AC;? and â&#x20AC;&#x153;was a seminal force in the creation and development of electronic newsgathering as both a craft and a profession.â&#x20AC;? He was best known for his work at CBS from 1935 to 1961.

Close but no Pulitzer There were some impressive winners among this weekâ&#x20AC;&#x2122;s Pulitzer Prize winners.

The Arizona Republic in Phoenix didnâ&#x20AC;&#x2122;t quite make it but was a finalist for its comprehensive coverage of the Jan. 8, 2011, shooting in Tucson that killed six and wounded 13, including then Rep. Gabrielle Giffords. The staff of the Republic was recognized for its exemplary use of journalistic tools, including Twitter and video as well as written reports and features, to tell the unfolding story.

What does it say when a Phoenix-based news organization makes it as a finalist for a news story that happened in Tucson?

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

Inside Tucson Media appears weekly.

InsideTucsonBusiness.com

APRIL 20, 2012

11

PROFILE Bombardier Tucson is one-stop shop for servicing jets

By Alan M. Petrillo Inside Tucson Business

I.T. Genius

The

Bombardier

An international company, Bombardier Aerospace, operates a maintenance facility for business and commercial aircraft at Tucson International Airport, building on a 35-year history of operation that began with Learjet aircraft completions.

Now employing more than 700 at the Tucson Aircraft Service Center, Bombardier has transitioned its operations into a full support facility for Bombardier business aircraft and airline regional jets, as well as comprehensive support and services for business and commercial aircraft customers.

Stan Younger, vice president of the service center, said the Tucson facility is “Bombardier’s only wholly owned facility serving both commercial and business aircraft customers that includes a state-ofthe-art paint facility positioning the center as Bombardier’s center of excellence for paint and refurbishment.”

The service center is able to segregate the different types of customers to best apply the skill sets of employees and leverage efficiencies of maintenance and refurbishment services, Younger said.

“On the commercial side, we’re more attuned to larger airplanes, like the CRJ 200, 700, 900 and 1000 models,” he said. “In that regard, we’re more of an airline-type maintenance facility where work is done in a controlled environment that allows more efficient support.”

On the business aircraft side of Bombardier’s facility, the company works on smaller Learjet models and medium-sized Challenger and Global Express business jets.

Joseph Rivera, general manager of the Tucson Aircraft Service Center, said he has been hiring people to fill 56 open positions.

“The last two years have seen an increase in employment here,” Rivera said.

“We’ve increased our work force while most other companies in our industry have not done so.”

The Bombardier service center, which operates around the clock, consists of 15 buildings, 10 of which are hangers. Seven of those hangers are dedicated to business work and three are for commercial, including what Rivera called “one of the biggest hangers around at 250,000 square feet.”

Bombardier’s technicians deliver a range of aircraft maintenance services, modifications, inspections, refurbishment, fly-in repairs and aircraft-on-ground services.

Rivera pointed out that Bombardier is investing in the infrastructure of its Tucson facility.

“We’ve upgraded our fuel farm, which was a large project and investment,” he

Bombardier maintenance technicians inspect a Learjet 45 flap at the Tucson Service Center.

BIZ FACTS

Bombardier Tucson Aircraft

said, “as well as Other BombarService Center renovating hangers dier-owned service 1255 E. Aero Park Blvd. and painting their centers are in http://us.bombardier.com/ floors. We also broke Hartford, Conn.; Fort (520) 746-5100 ground on a new Lauderdale, Fla.; perimeter fencing Wichita, Kan.; Dallas; project that will help with airport security Macon, Ga.; Bridgeport, W.Va; and by giving us two lines of fencing between us Schiphol Airport, Amsterdam, Holland. and the airport runways, yet still allow our Younger said Bombardier considers the customers to have access to their aircraft.”

Tucson Aircraft Service Center to be one of Younger noted that Bombardier also its most important aftermarket locations, continues to seek ways to improve its “which is why the company has invested business and work methodologies to time and money to make it a viable become more efficient. solution for our customers.”

“Life is a series of continuous improveRivera said the Tucson location has ments,” he said. “Every day we look at how engaged with local high schools to promote to lean ourselves out, perhaps by shortenstudents getting into the industry, and also ing the span of time of a maintenance is involved with Pima Community College’s event, which gives a customer more time to Aviation Technology Program in teaching have the aircraft up in the air.” airframe and power plant technicians. He Younger pointed out that one of the called the PCC program “a big supplier of chief areas Bombardier has enhanced its technicians for us.” capabilities at the Tucson operation is on In addition to bringing PCC aviation aircraft refurbishment. technology program students through the “It’s rare to have an aircraft maintenance Bombardier facilities on tours and for small facility where a customer is able to get workshops, Younger said the company is in interior refurbishment and a new paint job, discussions to partner with the PCC yet not leave that one location,” he obprogram to work out an after-school served. relationship where students get actual Rivera said the Tucson Aircraft Service hands-on experience at Bombardier’s Center is one of the few locations in North service center.

America that serves as a one-stop shop for “We’re working closely with them on an avionics, maintenance and world-class internship program where the students can interior refurbishment and painting. get immersed in the maintenance and “It’s a huge advantage and cost savings service lingo and activities,” Younger said, for the customer to get all the maintenance “and perhaps get involved in some entry done in one spot,” he said. level work.”

best employees you never had.

Wouldn’t you love to have a top IT team, a bunch of brilliant computer experts with years of training, high-level experience and tons of certifications?

Call Nextrio. We’re the easy way to get top-notch IT results, without busting your budget.

Call us at 520.519.6301 or visit nextrio.com

12 APRIL 20, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Foothills and Mount Lemmon Jazz Under Stars opens restaurants are reborn tonight at Tohono Chul pie available everyday.

New concepts are coming to life on two • Sawmill Run Restaurant, 12976 N. restaurant sites. It looks like a space I happen Sabino Canyon Parkway, Summerhaven to know intimately, the building at 3500 E. — www.sawmillrun.com — (520) 576-9147 Sunrise Drive that was home to our Terra Cotta restaurant until we closed it in January 2009, is going to become Five Palms Steak & The Southern Arizona Center Seafood, according to an applicaAgainst Sexual Assault holds its tion with the Arizona Department 16th annual Dine Out for Safety of Liquor Licenses and Control. event Wednesday (April 25), The building has been which means the 20 or so particiacquired by Nino Aidi, a pating restaurants will contribrestaurateur born and raised in ute up to 20 percent of their Paris, France, who operates proceeds that day to the center. restaurants in Mexico, including Participating restaurants Five Palms in both Obregon and MICHAEL LURIA include B Line, 621 N. Fourth Ave.; San Carlos, Sonora.

Cafe Desta, 758 S. Stone Ave.; Meanwhile up on Mount Chad’s Steakhouse & Saloon, 3001 Lemmon, Sawmill Run Restaurant has N. Swan Road; Dakota Cafe, 6541 E. Tanque opened in Summerhaven on the site where Verde Road in Trail Dust Town; Don Pedro’s the Mount Lemmon Cafe, better known as Peruvian Bistro, 3386 S. Sixth Ave.; Feast, 3719 the “pie shop,” used to be. Although the E. Speedway; La Cocina, 201 N. Court Ave. in cafe building was one of the few structures to survive the 2003 Aspen Fire, it was closed Old Town Artisans; Michaelango Ristorante, 420 W. Magee Road, Oro Valley; Noble Hops in 2009 and torn down.

Gastropub, 1335 W. Lambert Lane, Oro Valley; Property owners Bob Zimmerman and Pasco Kitchen & Lounge, 820 E. University Jim Campbell brought chef/restaurateur Blvd.; Pastiche Modern Eatery, 3025 N. Gabe Greenberg up to the village to help Campbell Ave. in Campbell Village; Sparkroot, develop the concept.

The newly-built Sawmill Run is now open 245 E. Congress St.; and Zona 78, 78 W. River Road and 7301 E. Tanque Verde Road. every day — 9 a.m.-9 p.m. Fridays and • Dine Out for Safety — http://dineoutSaturdays, 9 a.m.-8 p.m. Sundays and 10 forsafety.com/ a.m.-8 p.m. Mondays through Thursdays —

The Tucson Jazz Institute’s up-and-coming Gala at 7 p.m. Saturday at the museum, 265 S. Church Ave. Tickets for the black-tie fundTJI Ellington Band and the Arizona Roadrunners will perform in the first of the Tucson raiser are $200 each and can be purchased Jazz Society’s Jazz Under the Stars concerts at online at www.moca-tucson.org .

7 p.m. tonight (April 20) at Tohono Chul Park, 7366 N. Paseo Del Norte.

Among its accolades, the TJI Six landmark homes built in Ellington Band will perform May the late 1920s and the 1930s in 5 at Lincoln Center in New York midtown El Encanto Estates will and has won a performance spot be part of a tour Saturday as a at California’s Monterey Jazz fundraiser for the Tucson Festival in September.

Historic Preservation FoundaTickets for tonight’s perfortion. The neighborhood is mance are $20 each with $5 basically south of El Con Mall. discounts for Tucson Jazz Buy tickets for $35 online at Society members and $10 HERB STRATFORD www.preservetucson.org. discounts for students and On April 27, four restored active duty and retired military. neon signs will be dedicated and Buy tickets online at www.tucsonjazz.org.

General admission tickets will be on sale at relit in ceremonies starting at 6 p.m. on Pima Community College’s downtown the door but will cost $25.

This is the first of four concerts in the Jazz campus. The next morning, from 9 a.m. to noon, the foundation will hold its fifth Under the Stars series at Tohono Chul Park.

Next week, April 27, national recording artist annual Historic Miracle Mile Open House and Tour showcasing the restored vintage Neamen Lyles and Isaac Valenzuela with guitarist Jay Soto as guest artist will perform motor courts and other sights of what was smooth jazz. Big Band Express and vocalist the northern gateway to Tucson before Interstate 10 was built. Two free shuttle Crystal Stark will perform May 4 and buses will operate from the PCC campus “Triple Threat Divas,” Crystal Stark, Julie during the open house.

Anne Boos and Katherine Byrnes, will

serving breakfast, lunch and dinner items.

Sawmill Run hasn’t neglected its roots either, paying homage to the former Mount Lemmon Cafe with apple pie and cherry

Art gala

Dine Out for Safety

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

History reborn

perform with the All-Star Band led by Jeff Haskell on May 11.

Tucson’s Museum of Contemporary Art (MOCA) hosts its AIR (Artists In Residence)

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

Furniture · Appliances · Building Supplies Home Improvement Materials

18,000 Square feet

of great finds for your home!

Sales Benefit Habitat for Humanity Tucson!

Open Mon.-Sat

We Accept Donations Call for Pick-up

889-7200

935 W Grant Rd (Located just 1/4 mile east of the I-10) www.HabitatTucson.org

InsideTucsonBusiness.com

APRIL 20, 2012

13

GOOD BUSINESS TECHNICALLY SPEAKING

Gaming Google to get business; is it worth risk of getting caught?

A few years ago residential real estate appraisers found themselves in an extremely difficult situation. Not only had a huge drop in home sales caused a huge drop in their business, but the government had stepped in and completely changed the rules by which appraisers got their business.

Before the banking-mortgage-housing crash, appraisers depended on their reputation and personal relationships to get work. After the crash, simply put, the government required appraisers to be selected almost anonymously.

The system one appraiser asked us for help with, in-use by a huge bank, was crazy!

Pre-approved appraisers had to log in to a website to see if any appraisal work was available and if so, accept the job. The problem for our appraiser was that no matter how many hours he spent logged in every day, every single appraisal was already taken.

We quickly realized the problem wasn’t that our client’s bathroom break at 10:32 a.m. was precisely the moment at which an appraisal request appeared and was snapped up by another appraiser. Instead, some appraisers found a way to cheat. They

purchased illicit software from an Asian company that automatically logged in every half-second of every hour of every day and grabbed any work offered.

Ca-ching!

DAVE TEDLOCK The terms of the agreement with the bank clearly stated that this approach was against the rules and could result in an appraiser getting blacklisted, but we learned that many appraisers in Arizona, Colorado, and other states did it anyway.

Today, business owners face a similar paradox in trying to drastically improve their Google ranking — getting onto page one of search results — in order to get the business they need to be profitable, or just to stay in business.

The book, “Search Engine Optimization for Dummies,” is more than 500 pages long and is in fact a simplified look at the complex subject of search engine optimiza-

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

S FREE TO

I

tion (SEO). We’ve studied books, read articles, attended seminars, subscribed to newsletters and used a wide range of techniques. Legitimate SEO involves dozens and dozens of techniques and never produces instant gratification no matter how big the budget and intelligent the effort.

The fastest way to get page one search engine results is to scam Google by taking the exact approach Google warns against — by buying into a sophisticated link farm system. A “link farm” uses hundreds or thousands of websites, usually all of them fake, on which an organization is listed with a link to its website.

Retailer JC Penny is a notable example of a link farm user who benefitted and eventually got caught. Google threatens to and has in fact punished cheaters by trashing their Google ranking.

Today, small organizations try the link farm system for a simple reason — they want to stay in business and be profitable.

The risk of getting penalized by Google seems small compared to the benefit of making money today.

Buying into a link farm system is no

guarantee of a page one listing, but it’s a huge step in that direction. What will happen, in the long run, to the organizations who are cheating on Google?

Consider the fate of residential real estate appraisers who gamed the bank’s system. It took months for the bankers to realize that some appraisers were using robots to grab all the work. Appraisers who were playing by the rules complained. The bank’s website programmers revised the system to thwart the bots, identify the cheaters and warn them. Every appraiser I talked to ignored the warnings and kept sweeping in the work.

Is it a good idea to break Google’s rules, use a link farm, and hope the business rolls in? Is the possibility of getting blacklisted

by Google worth the risk if it saves your business now? Let me know your thoughts.

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

!

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

MA O C .

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

Sign up today and receive the Inside Tucson Business e-newsletter directly to your inbox everyday.

PROTUCSON.PROBUSINESS.

14 APRIL 20, 2012

INSIDE TUCSON BUSINESS

Mayor is checking off items on 180-day plan

GET ON THE LIST

Next up: Architectural firms, Interior design firms, Engineering firms Tim Glass

Tucson Mayor Jonathan Rothschild spoke with residents about his 180-day work plan at the Ward 6 council office on Monday (April 16) saying progress has been made on initiatives on economic development, neighborhood safety, open government and environmental issues.

“What we’ve tried to do in this 180-day plan was to do things that are realistic,” Rothschild ROTHSCHILD said.

One of those things was to take existing funds from his office budget to hire a small business advocate.

Other items in the works include reforming the city’s land-use code, which has been a sore spot for business owners and developers for years.

“Our land-use code was and still is cumbersome,” Rothschild said.

City officials have worked to update and streamline the code, Rothschild said, cutting from it more than 170 pages of redundancies and contradictions.

He said the city also has worked to maximize its local contracting.

“I’m a big believer in hiring locally and purchasing locally,” Rothschild said. “And I don’t understand anyone who doesn’t.”

Rothschild’s 180th day in office will be June 4.

Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are: • April 27: Architectural firms, Interior design firms, Engineering firms • May 4: Defense contractors • May 11: Investment capital and lending, Venture capitalists • May 18: Residential real estate firms, Real estate brokers, Appraisers • May 25: Electrical contractors, Mechanical contractors, Plumbing contractors If your business fits one of these categories, now is the time to update your profile.

Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions.

The Book of Lists is a year-round reference for thousands of businesses and individuals.

To advertise your business, call (520) 2941200.

RETAIL

No Tucson stores on Best Buy closures list Best Buy’s store at the Promenade in Casa Grande has been identified as one of the first 50 the electronics retailer will close — and quickly, by May 12.

The company, which in February closed a store at Scottsdale Pavilion, said a store in Peoria is the only other Arizona store currently on its list of closures, although it said it anticipates closing three other stores by the end of summer.

The company, which had 1,099 stores at the beginning of the year. says it is closing stores in an effort to save the company as part of an initiative to save $250 million this fiscal year and $800 million by 2015. In Southern Arizona, Best Buy currently has three stores in Tucson and one each in Oro Valley and Sierra Vista.

The retailer said it is working with employees at affected stores to either find new positions elsewhere or offer a severance package.

LEGAL

Air Force helps with claims from sonic boom U.S. Air Force claims representatives are scheduled to be at the Murphy-Wilmot Library today (April 20) to discuss legal claims related to a sonic boom that was reported over Tucson April 13.

Representatives will be available to discuss claims and assist with filing them as well as answer questions about the claims process and provide forms.

To file a claim, residents are requested to bring: • Proof of ownership of the damaged property (or a power of attorney from the owner) • A receipt for the repair (if the repair has been made) • An estimate for any repair needed (two estimates if it will cost over $1,000) • Photographs of the damage (if possible) A claims team will inspect the damage at your convenience.

The claims representatives will be at the Murphy-Wilmot Library, 530 N. Wilmot Road, from noon-5 p.m. Questions should be directed to the legal office of the 355th Fighter Wing at (520) 954-0146.

COMMERCIAL REAL ESTATE

Newmark Grubb Knight Frank is new name for Grubb & Ellis

WE ALWAYS

DELIVER!

Tucson & Phoenix Same Day Delivery 2n DemanG &ourier Service /ive DisSaWcher 2nline 2rGerinJ & TracNinJ :arehousinJ & DisWriEuWion /ocally 2ZneG & 2SeraWeG

(520) 408-7200 – xceldelivery.com 3770 S. Broadmont at Ajo Way – Tucson, Arizona

Commercial real estate firm Grubb & Ellis Co. is now Newmark Grubb Knight Frank.

The new name reflects the combination of two firms owned by BGC Partners, Newmark Knight Frank and Grubb & Ellis, which was acquired out of bankruptcy.

The company will continue to operate in Tucson under the new banner with an office at 3709 N. Campbell Ave., Suite 135. There are about 15 employees in the Tucson office.

POLITICS

Barber strikes first in special election campaign Even before the vote tallies were complete in Tuesday’s special Republican primary, Democrat Ron Barber issued a statement calling out Jesse Kelly on policies Barber said will benefit the rich at the expense of the middle class.

Kelly won the primary garnering 35.6 percent of the 72,805 votes cast. Perhaps the biggest surprise of the election is that former Air Force pilot and political newcomer Martha McSally came in second with 25 percent of the vote. State Sen. Frank Antenori was third with 22 percent and broadcaster and marketing executive Dave Sitton got 17 percent.

Barber, former district chief of staff for Gabrielle Giffords who represented the district until she resigned in January, was unopposed in the Democratic primary.

InsideTucsonBusiness.com

APRIL 20, 2012

SALC votes to back extension of education state sales tax

By Hank Stephenson Inside Tucson Business The Southern Arizona Leadership Council, the Tucson regionâ&#x20AC;&#x2122;s business sector proponent for education, has voted unanimously to back an initiative that would make permanent the stateâ&#x20AC;&#x2122;s one-cent sales tax increase.

The temporary three-year tax approved by voters in May 2010 automatically expires May 31, 2013. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s time to put our money where our mouth is when it comes to education,â&#x20AC;? said Ron Shoopman, president of the Southern Arizona Leadership Council (SALC). â&#x20AC;&#x153;And weâ&#x20AC;&#x2122;ve come to the conclusion, after years of study, that there is no other remedy for Arizona thatâ&#x20AC;&#x2122;s going to work until we solve some of the cash flow problem that exists in our schools.â&#x20AC;?

Education boosters headed by Ann-Eve Pedersen, president of the Arizona Education Network, have started gathering signatures seeking to put a question on the Nov. 6 ballot that would extend the sales tax indefinitely, maintaining a combined state sales tax of 6.6 percent.

The group must gather 172,809 signatures before July 5 to get the initiative on the ballot, but Pedersen said they are already getting signatures at a record pace.

The initiative states that 80 percent of the expected $1 billion per year would be directly dedicated to education, much of that is to fund a set of new state mandates on schools such as Move on When Reading, which requires third grade students to read at grade level before graduating to fourth grade.

Other reforms, including performance pay for teachers, a new district grading system and common course standards, are set to be implemented in the next few years, but donâ&#x20AC;&#x2122;t have a dedicated funding source. â&#x20AC;&#x153;These are pretty rigorous reforms that are coming online but there has been no resources attached to them,â&#x20AC;? Pedersen said.

â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve raised the bar for students and teachers, but we havenâ&#x20AC;&#x2122;t given them the pole vault they need to get over the bar, so thatâ&#x20AC;&#x2122;s what weâ&#x20AC;&#x2122;re going with this initiative.â&#x20AC;?

Some of the income would also be dedicated to helping schools serving students of low-income families, pay for operations and infrastructure at the stateâ&#x20AC;&#x2122;s three universities, create community college and university scholarship funds, and invest in career and technical training in the community college system.

Additionally, the initiative declares that the Legislature cannot cut education funding from other sources, eliminating what Pedersen calls the â&#x20AC;&#x153;shell gameâ&#x20AC;? lawmakers could play with money dedicated for education. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s not to say (legislators) wonâ&#x20AC;&#x2122;t try to monkey with the money,â&#x20AC;? she cautioned. â&#x20AC;&#x153;But weâ&#x20AC;&#x2122;ve really made this as bulletproof as possible.â&#x20AC;?

Itâ&#x20AC;&#x2122;s not just schools that would benefit from the measure. Of the first $1 billion collected, 10 percent per year, or $100 million, would go directly to a state infrastructure fund.

The proposal also protects the Highway User Revenue Fund (HURF) from the kind of dramatic sweeps it has experienced in recent years. The language makes sure money dedicated for repairing roads and highways is spent that way, which will help cities and counties, which are now picking up the tab, said Pedersen.

Itâ&#x20AC;&#x2122;s this mix of education and investment in transportation infrastructure and education that made backing the proposal such an easy decision for board members of the SALC, said Shoopman.

Increasing the stateâ&#x20AC;&#x2122;s investment in infrastructure will create immediate jobs and build the transportation systems on which businesses rely, he said. And the stateâ&#x20AC;&#x2122;s education system has been a major problem to business, especially the high-tech businesses, looking to relocate here.

No recordings or call center for us.

Always a LIVE, LOCAL, human!

Southern Arizonaâ&#x20AC;&#x2122;s LARGEST Independent Office Products Dealer 520-352-2656 | 877-534-1533 www.OfficeSmartUSA.com

15

Learn more at

www.rkfin.com WEEK #34 TOPIC: With 2011 tax filing behind you, letâ&#x20AC;&#x2122;s re-group . . . and plan for 2012! /PX JT B HSFBU UJNF UP SFWJFX ZPVS UBY BOE JOWFTUNFOU TUSBUFHJFT GPS BOE CFZPOE &DPOPNJD SFDPWFSZ JT FWJEFOU BOE ZPVS Ă˝ OBODJBM TUSBUFHJFT OFFE UP SFĂž FDU QSVEFOU PQUJNJTN $POUBDU PVS TFBTPOFE UFBN PG QSPGFTTJPOBMT UP TDIFEVMF B DPNQMJNFOUBSZ DPOTVMUBUJPO UP DPOTJEFS XJTF BEKVTUNFOUT UP ZPVS Ă˝ OBODJBM QMBOT 5IJT JODMVEFT DPOTJEFSBUJPO PG USVTUT UP QSPUFDU ZPVS JOEJWJEVBM BTTFUT BT XFMM BT QFOTJPO QMBOT UP TUSFOHUIFO FNQMPZFF SFUJSFNFOU GPS TNBMM CVTJOFTTFT $BMM UPEBZ

NAPFA â&#x20AC;&#x201C; NATC â&#x20AC;&#x201C; NAEA â&#x20AC;&#x201C; FPA â&#x20AC;&#x201C; Registered with the SEC â&#x20AC;&#x201C; Fee Only â&#x20AC;&#x201C; CFP â&#x20AC;&#x201C; CSA â&#x20AC;&#x201C; EA â&#x20AC;&#x201C; ATA

Raskob Kambourian Financial Advisors, Ltd. / TU "WFOVF t 5VDTPO "SJ[POB 5 t ' t 5PMM 'SFF t XXX SLĂ˝ O DPN

Are your competitors stealing your customers because their technology is better than yours?

WE CAN HELP. The Technology Movers

www.copper-state.com TUCSON

PHOENIX

FLAGSTAFF

1919 S. Country Club Rd. Tucson AZ 85713 P 520.795.1877 | F 520.795.6064

2820 N 36th Ave Phoenix AZ 85009 P 602.272.2800 | F 602.272.2828

1155 W. Kaibab Ln Flagstaff AZ 86001 P 928.774.8733 | F 928.773.7501

Your company specializesâ&#x20AC;Ś Shouldnâ&#x20AC;&#x2122;t your staffing provider?

(520) 881-6231 Call Us Today! resourcemfg.com

Weâ&#x20AC;&#x2122;re an industry leader, with over 30 years of experience in placing the right people with the right skills at the right time.

t 1SPEVDUJPO t 4VQFSWJTJPO t 2VBMJUZ t .BJOUFOBODF t .BOBHFNFOU "MM -FWFMT

16 APRIL 20, 2012

INSIDE TUCSON BUSINESS

PEOPLE IN ACTION AWARDS In recognition of their professionalism, exceptional service and commitment to quality care in 2011, Oro Valley Hospital has named Cathy Flores, RN, Employee of the Year; Mike Zoucha, pharmacy director, Clinical Employee of the Year; and Mike Mumford, nutritional services director, Non-Clinical Employee of the Year.

Four Tucson-area Allstate Agents have received the Agency Hands in the Community award for their commitment to helping others in their area. With this award comes a $1,000 grant

from The Allstate Foundation for the local organizations where they volunteer.

Alex Garcia supported Mentorkids USA Tucson, Inc.; Beatriz ParadaBohon supported Tu Nidito Children and Family Services; Debe Campos-Fleenor supported American Heart Association, Inc.; and Craig Pretzinger supported Tumbleweeds Gymnastics Booster Club, Inc. To qualify for the grant, agents and personal financial representatives must show evidence of volunteer work that has had a positive impact on the local community.

Pima Community

CATHY FLORES

College instructor Dr. Dolores Durán-Cerda has been named Teacher of the Year in Arizona by the Arizona Language Association. The award recognizes teaching excellence and outstanding service in foreign language education. Durán-Cerda is a member of the World

MIKE ZOUCHA

MIKE MUMFORD

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

Languages faculty at Downtown Campus, where she teaches Spanish. She is president of PCC’s Faculty Senate, serves as a campus honors coordinator, and is a member of the World Languages Academic Advisory Committee of the College Board.

IBM has announced the appointment of seven new IBM Fellows, a prestigious honor that has a direct correlation to the company’s innovation and technology leadership. Among the group is Vincent Hsu of Tucson. Hsu has a long history of innovation in storage system architectures, creating workload optimized solutions through intelligent data placements and championing IBM’s increasing success in growth markets. IBM Fellow is the company’s pre-eminent technical distinction, granted in recognition of outstanding and sustained technical achievements and leadership in engineering,

programming, services, science and technology.

APPOINTMENTS Karen L. Burns has been appointed to business analyst for the Small Business Development Center (SBDC), a business counseling, training and education service hosted by Microbusiness Advancement Center (MAC) in Pima County. Burns consults with commercial clients to create strategies to access debt financing and restructure existing debt.

Burns earned master’s and bachelor’s degrees from the University of Arizona.

A Celebration of Marketplace Excellence

HPEDUNLQJ©RQ©D©&RVWD©5LFDQ©UDLQIRUHVW DGYHQWXUH©ZLWK©\RXU©VKDUH©RI© ©PLOOLRQ ©

Keynote Speaker

Master of Ceremonies

,PDJLQH Tom McNamara

Dale Dauten

Author of six books, including The Gifted Boss and The LaughingWarriors

KVOA Anchor

/RDQ,QLWLDWLYH FRP IHGHUDOO\©LQVXUHG©E\©QFXD Title Sponsor

InsideTucsonBusiness.com

APRIL 20, 2012

17

CALENDAR SPECIAL EVENTS

BBB Torch Awards Thursday (April 26) 11 a.m. to 1 p.m.

JW Marriott Starr Pass Resort & Spa 3800 W. Starr Pass Boulevard The 2012 BBB Torch Awards Luncheon will recognize three outstanding southern Arizona businesse RSVP: Sara Shambo sshambo@ tucson.bbb.org (520) 888-6161 Cost: $65 www.tucson.bbb.org/torchawards

Village Inn 6251 N. Oracle Road RSVP: Don at (520) 777-4240 Cost: Breakfast

6:45 to 8 a.m.

Resurrection Lutheran Church Outreach Center 11575 N. 1st Ave. Information: Gary Kling (520) 818-3278

Oro Valley Business Club Monthly Luncheon First Thursday of each month.

Carrabbas Italian Grill 7635 N. Oracle Rd. Information: www.scoretucson. org, (520) 670-5008 Cost: $15 members and non-members

Pima Rotary Club Weekly meeting Every Friday except the last Friday of the month 11:30 a.m. to 12:30 p.m.

Chad’s Steakhouse 3001 N. Swan Road Information: www.pimarotary.org Note: Bring your own lunch

Oro Valley Kiwanis Club Every Wednesday

Pima Rotary Club Monthly membership mixer Last Friday 5 to 7 p.m.

Location varies Information: pimarotaryclub@yahoo.com Project Management Institute (PMI) Tucson Chapter Second Tuesday of the month 5:30 to 7:30 p.m.

Hotel Arizona 181 W. Broadway Information: www.pmi-tucson.org or archboldk@consulting.ky Cost: $25 members, $30 nonmembers

Tucson Means Business Forum Thursday (April 26) 11 a.m. to 1 p.m.

Tucson Police Department West Division 1310 W. Miracle Mile RSVP: David Higuera ward3@ tucsonaz.gov or (520) 791-4711 http://cms3.tucsonaz.gov/business Description: Learn how to do business with and in the City of Tucson. Hear from Mayor Rothschild and other city officials.

Lunch provided by Blue Willow.

Tucson Dowsers May Presentation Saturday (May 5) 1 to 3 p.m.

Unity of Tucson 3617 N. Camino Blanco Wrap-up gathering for the season includes a panel of experienced dowsers.

Contact: Terry Klunk TucsonDowsers@ gmail.com or (520) 531-8039 $5 suggested donation www.TucsonDowsers.org REGULAR MEETINGS

Networking Club in Northwest Tucson Ali Lassen’s leads club First Wednesday noon to 1 p.m.

Sullivan’s Steak House 1785 E. River Road RSVP: Johnna Fox (866) 551-3720 Networking Entrepreneurs of Tucson Networking breakfast First and third Wednesday 7 to 8:30 a.m.

Hometown Buffet 5101 N. Oracle Road Information: (520) 240-4552 Northern Pima County Chamber of Commerce Monthly Membership Breakfast Fourth Thursday of the month 7 to 8:30 a.m.

El Charro Café 7725 N. Oracle Road http://the-chamber.com Northwest Power Group (referral group) Mondays 7:30 a.m. to 8:30 a.m.

Hilton El Conquistador Country Club, 10555 N. La Cañada Drive RSVP: (520) 229-8283 Cost: $50 one-time fee (first two visits free) Northwest Power Group Networking business group Every Tuesday 7:15 to 8:30 a.m.

Vantage West can help you grow your business. Whether you want to build a new office or warehouse, expand your current facilities, purchase equipment or a fleet of vehicles, we can help. We have money to lend to qualified businesses, and because all loan applications are reviewed right here in Tucson, you’ll get a decision quickly. Call us.

298-7882 | Vwestcu.org Federally Insured by NCUA. Subject to approval. Certain restrictions and conditions may apply.

Find us on Facebook

Follow us on Twitter

18 APRIL 20, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Thinking about converting to a Roth IRA? Weigh the factors Thinking about converting to a Roth Individual Retirement Account (IRA)?

While many people will make that decision more from their hearts than their heads, one important question to ask yourself is, how long can you keep your money in a Roth IRA? If you decide to convert, here are some other factors and strategies that will help you now and in the future:

Non-deductible contributions Income limits prevent many people from making tax-deductible contributions to a traditional retirement account. In 2011, the maximum permitted contribution to a non-deductible IRA was $5,000, or $6,000 if you were 50 or older at year-end.

The Internal Revenue Service says when calculating the taxable and non-taxable amounts of a conversion, all of your traditional IRAs, including Simplified Employee Pension (SEP) and Simple IRAs, must be included.

Here’s the bottom line: You cannot just withdraw or convert the non-deductible fund and pay no income tax, even if the non-deductible IRA contributions were kept in a separate IRA. Any year you make non-deductible contributions, you must file Form 8606 which details the non-taxable portion of your IRA.

Recharacterization A recharacterization will undo a Roth conversion. It has been called the “do over option,” which can be exercised any time before the due date of your income tax return for the year of the conversion, including extensions.

Recharacterizations for 2011 can be made through Oct. 15, 2012. One of the most common reasons to reverse a conversion is that the portfolio’s value has declined after the conversion to a Roth IRA. First, establish a new Roth IRA to hold each year’s conversion amount separate from any of your existing Roth IRAs. This will make it easier to identify the funds being recharacterized. If the funds are commingled, the recharacterization process can become more complicated.

Next, consider establishing multiple Roth IRA accounts if you are converting a large amount of money. If you have multiple asset classes in one Roth IRA, the tax effect of losses and gains are proportional to the account.

But if you maintain multiple Roth IRAs, each with a single asset class (examples:

U.S. Large Cap, Domestic Small Caps, Foreign Stocks, Emerging Market Stocks, Commodities, etc.) you can pick and choose recharacterizations to take advantage of the tax break.

DREW BLEASE For example, assume you have $500,000 in your retirement account. You decide to convert $100,000 and set up four accounts, with $25,000 in each account. You can keep the best performers as Roth IRAs and recharacterize the laggards back to traditional IRAs.

Tax bracket strategy What tax bracket will you be in the year of the conversion?

In choosing the “optimum” amount to convert to a Roth IRA, you most likely would convert an amount that would be taxed at a rate equal to or less than your projected future tax rate.

For example, if you are in the lowest tax bracket, your strategy may require a series of partial conversions each year to remain in the 15 percent federal tax bracket.

Be aware: various deductions and credits, such as medical expenses and the child tax credit, may be impacted. Parents of students may find that increasing adjusted gross income will reduce their eligibility for college financial aid and scholarships.

Another important tax consideration is that you must make sure you have funds available in a non-retirement account to pay the taxes that will be due on conversion.

It is important to work with your tax adviser to evaluate all the results of a Roth IRA conversion and see if they will differ if the conversion is shifted from one year to another.

Next January, the Bush era tax cuts are set to expire so this may be your best year to convert your traditional IRA to a Roth IRA at our currently lower tax rates.

Restrictions, penalties, and taxes may apply. Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.

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

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

Company Name

Symbol April. 18 April. 11 Change

52-Week 52-Week Low High

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

AERG.OB CEXI.OB PRSC UNS

0.06 0.02 14.79 35.76

0.07 0.02 14.71 35.54

-0.01 0.00 0.08 0.22

0.04 0.01 8.35 32.96

0.89 0.10 15.94 39.25

9.95 0.48 2.59 8.92 59.69 6.80 79.74 22.06 54.20 4.10 18.34 35.08 29.86 24.03 27.85 13.33 88.07 38.40 43.60 10.53 64.29 61.04 14.87 38.29 27.77 51.81 58.73 200.13 29.22 61.43 4.68 43.29 33.67 7.72 51.01 23.49 1.15 25.55 31.96 39.65 58.62 40.13 37.83 25.96 46.55 61.92 33.87 8.37 52.93 44.47 21.92 36.98 56.01 9.68 7.89 41.36 30.94 57.38 15.77 32.72 36.22 22.70 109.65 35.92 8.20 31.30 62.06 35.51 33.57 8.51 21.17

9.90 0.50 2.64 8.86 57.93 7.14 79.05 21.96 54.22 3.93 18.27 33.58 28.98 21.38 27.39 13.05 87.32 38.12 43.75 9.91 62.37 60.15 14.73 35.78 27.47 49.75 57.08 202.58 28.89 60.03 4.87 44.01 32.70 8.19 49.23 23.46 1.14 25.75 31.02 38.79 57.13 39.39 37.34 25.52 46.02 60.19 34.43 8.39 51.51 42.00 20.19 36.51 58.66 10.60 7.95 41.32 30.69 57.20 16.06 31.99 35.72 21.04 105.80 36.26 7.62 30.87 59.80 33.08 33.62 8.69 20.84

0.05 -0.02 -0.05 0.06 1.76 -0.34 0.69 0.10 -0.02 0.17 0.07 1.50 0.88 2.65 0.46 0.28 0.75 0.28 -0.15 0.62 1.92 0.89 0.14 2.51 0.30 2.06 1.65 -2.45 0.33 1.40 -0.19 -0.72 0.97 -0.47 1.78 0.03 0.01 -0.20 0.94 0.86 1.49 0.74 0.49 0.44 0.53 1.73 -0.56 -0.02 1.42 2.47 1.73 0.47 -2.65 -0.92 -0.06 0.04 0.25 0.18 -0.29 0.73 0.50 1.66 3.85 -0.34 0.58 0.43 2.26 2.43 -0.05 -0.18 0.33

8.45 0.20 2.10 4.92 51.83 6.74 65.35 21.21 43.77 3.30 12.30 21.40 19.19 14.61 22.80 8.49 70.22 31.16 31.16 6.41 38.99 43.64 8.03 28.85 16.92 28.13 41.22 157.13 27.68 39.87 2.69 27.85 25.73 5.02 42.14 21.14 0.49 12.14 18.07 32.90 38.64 22.66 25.49 13.68 33.20 49.20 23.44 3.29 38.35 34.02 15.93 30.98 28.89 9.63 7.15 32.12 20.96 45.28 14.10 24.34 27.62 15.51 77.73 35.45 3.96 20.10 48.31 30.34 22.58 4.44 13.18

17.96 6.96 5.55 12.71 66.64 13.01 86.91 32.85 59.59 7.29 29.88 46.00 30.41 32.24 51.43 14.55 92.10 43.49 45.88 11.60 64.84 70.15 16.45 56.78 30.49 52.15 62.28 210.69 35.79 62.33 5.72 46.49 38.40 13.12 57.39 25.85 2.46 28.28 32.29 44.46 59.32 41.27 38.83 29.32 50.20 70.61 43.18 9.69 53.20 45.65 25.43 40.75 87.66 16.92 12.44 43.64 32.79 58.95 22.39 35.98 39.24 26.84 117.40 58.29 10.35 32.23 62.63 45.34 34.59 9.20 24.71

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

InsideTucsonBusiness.com

APRIL 20, 2012

19

INSIDE REAL ESTATE & CONSTRUCTION

O’Neil Construction Company: 30 years under one Roof

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

TUCSON REAL ESTATE

4/9/2012

4/2/2012

$140,500 5,899 329 477 192

$139,500 6,014 348 442 194

Source: Long Realty Research Center

in February, a 36 percent improvement.

The Realtors reported an 8.6 percent decline in listings, falling from 4,560 in February to 4,168 in March. One year ago, there were 6,703 homes for sale.

Open houses galore

O’Neil Construction

By Roger Yohem Inside Tucson Business In 1982 with assistance from W. E. O’Neil Industries, long-time Tucsonan Tom Roof opened his general contractor’s business as T.L. Roof & Associates Construction Company.

Over the years it thrived, building such landmark projects as the Ritz-Carlton, Dove Mountain Resort, La Encantada shopping center, the Arizona Cancer Center, Joesler Village, Trico Electric Cooperative’s corporate headquarters, and even telescopes on Mount Graham.

In April 2011, Roof’s company, formally structured as a subsidiary of O’Neil, changed its name to better align its business connections with its Chicago-based corporate owners. Roof’s Tucson business became W.E. O’Neil Construction Company.

That was all that changed. Roof’s local executives, managers and employees remained in place, working out of their longtime base at 710 S. Campbell Ave. Now celebrating its 30th year, the company attributes its success to “operating with integrity and commitment to our business partners” said John Hobbs, president of the Tucson division of O’Neil Construction. “The beauty in this relationship is that our customers get to work with local people with local decision-making power, people who live and work in our community with national experience and financial strength behind us should we need that assistance.”

As a full-service contractor, the company also has built dozens of schools, retail centers, churches, high-tech manufacturing facilities, aircraft hangars, hotels and resorts throughout Southern Arizona and the state.

The corporation itself operates nationally.

Roof came to Tucson in 1951. His first

Founder Tom Roof (left) celebrates the 30-year alliance of T.L. Roof & Associates and O’Neil Construction with president John Hobbs.

project in 1982 was for the University of Arizona, doing fire safety improvements.

Hobbs joined the O’Neil Companies in 1984 as vice president of operations in Phoenix.

He became Tucson office president in 2004.

During its 30 years in business, the company’s clients have included the City of Tucson, Raytheon Missile Systems, Tucson Electric Power, Cottonwood Properties, Tucson Unified School District, Bombardier, Marriott Corporation, Caterpillar, Tucson Medical Center, Nature Conservancy, and the Arizona-Sonora Desert Museum.

Business-friendly tour In an effort to demonstrate its businessfriendly policies, Sahuarita town officials and business leaders will host a special economic development event May 2. The Commercial Broker and Economic Development Tour will showcase the town’s business, medical and industrial opportunities.

Mayor Duane Blumberg will host the event with Bob Sharpe, president of Rancho Sahuarita, and Jordan Feld, planning director for the Tucson Airport Authority.

Sahuarita is targeting regional business interests promoting that it has no impact

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

Current

Last Week

4/10/2012

One 12 Month 12 Month Year Ago High Low

3.88% 4.125%APR 4.00% 4.25%APR 4.95% 3.38% 3.50%APR 3.50% 3.625% APR 4.22% 3.00% 3.375%APR 3.00% 3.375% APR

4.95% 4.22%

3.88% 3.16%

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, AZ 85733. (520) 324-0000.

MB #0905432. Rates are subject to change without notice based upon market conditions.

fees, no business license fees, no city property tax and a new streamlined process for permits, development plans and plats.

To tap interested companies, the tour will meet in downtown Tucson at Maynards Restaurant, 400 N. Toole Ave., to board tour buses. Attendance is free but limited to 55 people. To reserve a spot contact Sandy Klijian at sandyk@ranchosahuarita.com or (520) 299-8766.

4 home indices up As an indication the home market may be stabilizing, four of five key measurements were headed in the right direction in March, according to new data from the Tucson Association of Realtors Multiple Listing Service.

The good signs included higher average and median sales prices, and an increase in total homes sold compared to February.

Plus, active listings fell, a movement that firms up prices.

The adverse sign was a 14.6 percent jump in new listings. There were 1,971 new listings in March compared to 1,720 in February. The rise was not unexpected, as analysts have predicted for months that once prices began to increase, sellers who had pulled their homes off the market would re-list and swell the inventory.

Despite the increase, the overall conditions are looking better.

“It looks like the start of a small upward movement. There are reports of good traffic and good buyers. There is a note of optimism,” said housing analyst John Strobeck of Bright Future Business Consultants.

For March, the average sales price was $168,153, a slight 2.2 percent increase over February. The median mark was even better at 6.3 percent, jumping $7,900 to $132,900. Total home sales were 1,387 compared to 1,019

In anticipation of next week’s Nationwide Open House Weekend, Tucson-area real estate agents are urging potential home buyers to prepare now to take advantage of the event. Analyze locations, research neighborhoods, and map out a plan to maximize time and effort.

With regional prices show signs of stabilizing and increasing, “now is the time to buy in Tucson considering the historically low interest rates and favorable pricing,” said Phil Tedesco, CEO of the Tucson Association of Realtors. “The statistics indicate inventory is dropping.”

The Nationwide Open House is April 28 and 29. Details and locations for the Tucson area are online at www.tarmls.com.

Lennar buys 29 lots Home builder Lennar Arizona has purchased 29 lots for $1.96 million in Marana’s Dove Mountain community from Miramonte at Dove Mountain LLC. The lots are in the Preserve III development at the northwest corner of North Camino de Oeste and West Tangerine Road.

The acquisition is “another indication of our market’s real estate recovery and the confidence builders are now beginning to regain,” said Will White of Land Advisors Organization who handled the transaction.

Sales and leases • Community Extension Programs purchased a 6,380 square-foot office building at 50 E. Croydon Park Road for $700,000 from Wells Fargo, represented by Rick Kleiner, Picor Commercial Real Estate Services. The buyer was represented by Doug Richardson, Tucson Realty & Trust.

• All Pro Hydrojetting and Pumping LLC purchased 6,929 square feet at 5959 S. Belvedere Ave. for $345,000 from Bank of America, represented by Rob Glaser and Brandon Rodgers, Picor. Mike Beck, Henry Zipf Realty, represented the buyer.

• Dr. Thili Kulatilake purchased a 2,086 square feet office/condo at 4574 N. First Ave. in Rillito Business Park for $300,000 from Guy Petersen MDSC Pension, represented by Chuck Corriere, Keller Williams.

The buyer was represented by Tony Reed, Long Realty.

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

20 APRIL 20, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Trying to figure out what shoppers want It’s hard to believe it was just three years that Circuit City threw in the towel and shut down. The nation’s two large format electronics retailers had duked it out and Best Buy defeated its nemesis.

Now look what’s happened. It’s Best Buy that’s on the ropes. So far the company’s four stores in the Tucson region have been spared but the fact is the company is on a fast-track to cut DAVID HATFIELD expenses and closing stores is supposed to save $250 million this year.

In announcing their planned cuts last month, Best Buy officials said they’re tired of being a showroom for electronics, only to have customers go off and actually buy products elsewhere.

I don’t doubt that’s an issue but at the same time, when was the last time Best Buy encouraged you to buy from them? I know it happens. Our daughter and son-in-law needed a new dishwasher and after shopping at two or three other stores found and bought what they wanted at Best Buy. On the other hand a colleague told a story a couple of weeks ago of wanting to buy a particular camera for a trip. She had done her homework online and liked a particular model because it had the features she wanted and was small enough to fit in her bag. According to Best Buy’s website, a nearby store had the camera in stock at a fair price so she went get it so she could have it now.

She resisted the clerk’s efforts to sell her a different, larger camera only to find out that, despite what the website indicated, the store did not have the camera she wanted in stock. The store in Oro Valley had it in stock and the clerk told her she could go there. The clerk didn’t offer to help her get it. She left, ordered it from an online store, not Best Buy, and had it delivered.

Frankly, I’m old-school enough to think value when I shop.

I’m still lamenting the fact that Roh’s Fine Home Electronics closed last year. Now there was a store that sold quality merchandise, had the expertise and competitive pricing, not mention the fact that it was locally owned.

Unfortunately, it’s getting harder to shop value. Think about that the next time you buy an airline ticket online. The default way to shop is by cheapest price, even if it means paying to check bags or wasting an hour or more taking a connecting flight. Then, we wind up gloating that we bought a $79 ticket but complain because airlines treat us like cattle. What do we expect?

Curiously, one of Best Buy’s initiatives is to open more smaller stores in malls and promote service. It seems to me Radio Shack tried to do something similar but hasn’t figured it out.

This issue of Inside Tucson Business includes coverage by reporter Roger Yohem of last week’s Global Retailing Conference put on by the University of Arizona’s Terry J. Lundgren Center for Retailing. The theme of the conference was “Innovating Customer Engagement.”

It’s exciting to read what could be happening in retail. Much of it has to do with technology. If even some of it works, it might even be worth shopping again.

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

EDITORIAL

Winning a battle, losing the war Republican voters who spoke in this week’s special primary election decided that Jesse Kelly is the candidate they think should go up against Democrat Ron Barber to fill the Congressional seat vacated in January

by Gabrielle Giffords.

Sadly, unless something unexpected happens, most political strategists believe the Republicans have essentially ceded the June 12 special election to Barber, who was Giffords district chief of staff.

That’s notwithstanding poll results released the day before Tuesday’s election saying Kelly would have a 4 percentage point lead in a head-to-head race with Barber. The same poll also said that two of the other candidates, Martha McSally and Dave Sitton, were within the survey’s nearly 6 percentage point margin of error. And state Sen. Frank Antenori wasn’t that far out of range, lagging a full 6 percentage points.

Although the poll was done by National Research Inc., a well-regarded Republican polling organization based in Holmdel, N.J., neither the Kelly campaign nor the National Republican Congressional Committee acknowledged ordering it, so we don’t know the motivation or whether anyone who counts believes it.

The significant margin of error probably has to do with the small sample, just 300 likely voters. Likely voters? That’s just it, who knows who are the people likely to vote in a June 12 special election? Turnout for such elections is often low, although this week’s turnout among all voters was a rather respectable 28 percent.

And when it comes to Barber, without a primary opponent his campaign was able to lie in wait while building a tidy war chest of nearly $550,000 that it began to unleash with a TV spot the day after the primary this week.

The Kelly campaign can talk about his name ID, but that $10,000 he’s got so far for a general election campaign will be overwhelmed pretty fast.

There’s no question but that Kelly is more polished at campaigning than he was two years ago when he went up against Giffords. But 2010 was an extraordinary election year for Republicans, regaining seats in districts across in the U.S. House of Representatives. It remains to be seen whether there will be similar sentiment for Republicans this year.

There is also the unique circumstance of emotion surrounding this special election. Barber was wounded in the Jan. 8, 2011 shooting that hurt his boss Giffords so badly.

Kelly is saying the right Republican words in this year’s campaign but in the primary he wasn’t saying them to, or engendering the support from, business leaders.

He will need to do that — and convincingly so — if Republicans hope to have any chance to defeat Barber in the June election to finish out the last seven months of what was Giffords’ term in Congressional District 8.

If that doesn’t happen and political strategists turn out to be correct in forecasting Barber’s victory, there is a lesson Republicans need to learn — and quickly — because the next primary election is Aug. 28. That will be for the newly drawn Congressional District 2 and Barber has said he intends to run again. As it stands now he will face a formidable Democratic primary challenger in state Rep. Matt Heinz.

In this case, three times won’t be the charm for Jesse Kelly.

That means Republicans who believe Kelly’s victory this week represents the future of the party will find their celebration this week to be short lived. They may have won a battle but they’re losing the war.

Republicans will need to get a candidate who can win in November.

InsideTucsonBusiness.com

APRIL 20, 2012

OPINION

WAKE UP, TUCSON 1

Can Tucson get some tourism mojo from Scottsdale?

21

2

OR

Over the past three years, there have been significant changes to improve the political and economic landscape of the Tucson region. Another one happened this week with the arrival of Brent DeRaad as the new CEO of Visit Tucson, or as it’s currently officially named, the Metropolitan Tucson Convention and Visitors Bureau (MTCVB).

DeRaad comes from Scottsdale’s tourism bureau where he was the executive vice president. He is walking into a situation that is ripe for a turnaround.

Scottsdale branched out with its own tourism brand in 1987. Tucson did the same five years earlier, in 1982. Scottsdale’s brand has become known world wide. Tucson’s hasn’t.

We’re excited about DeRaad’s arrival and are committed to helping him make this region a buzz worthy place so lots of travelers will visit, putting fresh money into our economy.

Here is a blueprint for tourism success that will serve business owners and the municipalities they reside in.

1. Visit Tucson must be “a rising tide (that) lifts all boats.” The perception of the previous MTCVB leadership was laden with resort favoritism and uneven distribution of new business opportunities. Smaller hotels,

4

3

Tale of two cities: Tucson and Scottsdale tourism in the last 25 years

OR

restaurants and other businesses operating within the industry are desperate for an organization they can believe in and help. A sure-fire way to get most of them in the boat will take a big JOE HIGGINS picture, evenhanded approach.

2. Airlift. Bill Holmes, chief operating officer at the Tucson Metro Chamber, is chairing a workgroup with the sole purpose of increasing airlift or airline service CHRIS DeSIMONE out of Tucson International Airport. We have participated with the group that includes business owners, hoteliers, Visit Tucson and the Tucson Airport Author-

Tourism: Tucson’s No. 1 industry takes on new leadership

OR

ity. The issue is a classic “chicken or the egg” situation. Airlines won’t add service until they believe there are enough travelers to warrant it but more than 1.3 million people from zip codes in the Tucson region fly out of Phoenix Sky Harbor because there isn’t the service they want in Tucson. The volume is here but we need to convince both passengers and airlines to use Tucson International Airport more often.

3. Mea culpa. Pima County’s performance audit of the MTCVB last year cited the agency’s own board. For years, it was handpicked to be a cross-section of folks that came to meetings drank coffee, nodded, and watched other markets eclipse the Tucson region. That attitude doesn’t need to be defended any longer. It’s OK to acknowledge some things weren’t so great and then we can all move on.

4. More advocacy for Visit Tucson.

Previous leadership of the MTCVB was basically two guys justifying their existence with flow charts, spreadsheets and pictures prairie dogs. Tourism has an economic impact in the Tucson region of more than $2 billion a year. It’s our largest industry. All of the businesses in the tourism industry

Sun shines on Tucson tourism again with new leadership need to communicate one-on-one with politicians and to the public at large that tourism pays the bills and employs 21,500 Tucsonans. We’ve learned the lesson — Major League Baseball spring training, LPGA, the Copper Bowl — what happens when we take these things for granted.

Tourism is a clean industry with assets that are already built. The assets just aren’t being used enough. Old Tucson isn’t closing for the summer because it wants to. It’s closing because it needs to survive.

Tucson’s tourism industry is ripe for a turnaround and the changes are encouraging. For DeRaad the opportunity is there to take the good things and maximise them as well as making some hard decisions about some things that aren’t working so well. It’s vital to our economy.

All of us throughout the Tucson region need to get behind DeRaad and the new MTCVB — Visit Tucson — to make it happen.

Contact Joe Higgins and Chris DeSimone at wakeuptucson@gmail.com.

They host “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM. Their blog is at www.TucsonChoices.com.

SPEAKING OUT

(With tongue in cheek) The importance of banning plastic bags Rumors are “fluttering” like plastic bag “birds” in Tucson’s trees that the city council is about to ban plastic bags. Fads rule! Apparently when San Francisco or Portland, Ore.,nix high density polyethylene products, we must too!

At a recent city council meeting, a working group of both business people and environmentalists was established. They are “to come back to Mayor and Council in six months with recommendations on how best to reduce consumption of single use plastic bags.” They will also “advise the council on increasing current recycling and education efforts.”

The establishment of a taskforce could mean there are not sufficient votes on the council for a ban or that a more pragmatic solution for a community problem is being sought.

In 2009 the city established a plastic bag recycling program with Phoenix-based Arizona Food Marketing Alliance (AFMA).

The idea was that consumers would recycle their plastic bags if it was easy for them to do.

Grocery stores, pharmacies, and other large retail establishments provide reusable carry-out bags for purchase, along with a container for customers to return their

clean plastic bags for recycling. The baseline estimate was that 182 million plastic bags are distributed in metropolitan Tucson each year, according to the Pima Association CAROL WEST of Governments.

What progress has occurred on recycling the plastic bags? In a Jan. 27, 2012, city memo the Arizona Retailers Association and the Arizona Food Marketing Alliance reported their Tucson members had recycled 674 tons of plastic bags and other film products such as shrink wrap and plastic bags from cleaners. Considering 132,000 bags per ton, this equates to 89 million plastic bags for 2011. A year earlier, in 2010, 41 million plastic bags were recycled.

Local environmentalists scoff at these numbers because there is no way to verify them. They believe the goal must be to decrease the use of plastic bags, and a ban is the best way to control usage.

Part of the discussion has been the

disincentive of charging a fee for the use of plastic bags. The man who washes my windows says he would pay a fee per plastic bag if the money were used to clean up litter and graffiti.

The Southern Arizona Green Chamber of Commerce, Tucson Clean and Beautiful and the Environmental Education Exchange have been educating the public on the importance of recycling and reusing plastic bags. Recently the Girl Scouts, in collaboration with Bashas’ stores, collected 100,000 plastic bags. The Komen Race for the Cure worked with Safeway to gather 10 cubic yards of plastic film.

When I ran for office, I promised voters I wouldn’t support city ordinances that couldn’t be enforced. Bans fall in that category.

The only place I’ve found in the world with a good reason to ban plastic bags is the island community of Lamu in Kenya where I visited in 2006 and 2009. The donkey is the sole form of transportation for residents of Lamu. It seems the donkeys were nibbling on plastic bags, which often proved fatal.

Lamu wanted to clean up garbage and litter to attract more tourists. Lamu’s district administrator persuaded his council to

prohibit the use of plastic bags.

Most Kenyans don’t shop excessively, so the ban apparently has worked. The donkeys are healthier. Lamu is cleaner. The trouble is, tourists still think twice about visiting charming Lamu because its only a little over 100 kilometers south of Somalia and its pirates.

Tucson officials believe their plastic bag recycling program has had “modest success,” but more must be done. Retail and grocery clerks should educate customers about alternative packaging. If we oppose a ban, we ought to bring reusable bags to stores to decrease the use of high density polyethylene products. The responsibility for this litter dilemma is really ours.

If we were to conduct a poll, Tucsonans might suggest there are more important things than plastic bags for the council to consider. How about road potholes and weeds in medians? There is the city budget, downtown redevelopment, and of course, the local economy.

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

22 APRIL 20, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

In tax week: How to say that paying taxes is a conservative value As we left our local zoo one day three years ago, my son, then 8, asked what wealthy family had built all the exhibits, stocked them with elephants and monkeys and giraffes, then invited the public to come and enjoy them?

The family behind the zoo, I was happy to tell my boy, was actually our own. Acting alone, our household couldn’t have hoped to create such a wonder. But by chipping in a little money each year, and combining it with the money that thousands of other fellow residents contributed, we made the zoo possible.

As I mentioned to my son, the money that made our zoo was a special kind of payment called a tax. He was impressed that a community could be so clever, collecting a few dollars from so many purses and wallets to create something so wonderful.

“That’s a good tax,” he shouted, licking his ice cream cone in satisfaction.

This week I was thinking about my son as taxpayers across the country raced to meet this year’s filing deadline for their income taxes. When’s the last time, after all, that you’ve heard anyone mention a good tax?

I can be as grumpy as the next guy when it’s time to file my federal and state income tax returns – or when my local property tax bill arrives.

But as I’ve often told both of my DANNY HEITMAN children, quoting from Justice Oliver Wendell Holmes, taxes are the price we pay for civilized society. Ever since his epiphany at the gates of the zoo, I’ve tried to teach my son, now 11, and his 16-year-old sister about many other things our taxes pay for.

The library where we get books for free isn’t really free at all; taxes keep the doors open. The streets we drive to school and the shopping mall didn’t sprout like toadstools in some fairy-tale past. Taxes built them, and taxes keep them repaired.

Taxes, I’ve told my kids, pay our soldiers and teachers and police officers, fund our local universities, and send our astronauts into space. Taxes help keep our food safe

and our water clean. Taxes pay for the parks where we play, and the scientists who explore the heavens and the sea.

When a local tax election looms, we discuss it at the dinner table, parsing out what our family might stand to gain if it’s approved, and how much it will cost us.

Sometimes, our children accompany us into the voting booth as we cast our ballots.

I’ve shown our kids my tax bill, so that they’ll know there’s really no free lunch.

When they spend their allowances on bubblegum, video games, or designer clothes, I remind my youngsters that they’ve become taxpayers, too, through the sales tax charges on their receipts.

What I’m attempting to do, I suppose, is help my son and daughter see taxes not as a textbook abstraction on a civics test, but as a practical reality of their daily lives – and something worthy of serious thought, not silly sloganeering.

My children have grown up in a political climate in which millions of people seem to reflexively regard taxes as a social evil.

Taxes have never been popular, nor will they ever be. But the rhetorical absolutism

InsideTucsonBusiness.com

Did (or will you) participate in the Imagine Greater Tucson survey?

Imag Yes 17% No 32% I haven’t heard of it or don’t care 51% Next week’s poll: Do you believe the controversial “sweep” of HURF money is what caused local roads to fall into disrepair?

of the current campaign season has given too many of us, I’m afraid, the illusion that government either has no price tag – or that its price can be paid by someone else.

I am, by habit and virtue of residence in a red state, fairly conservative. As a journalist the whole of my adult life, I’ve also been vigilant in sounding the alarm about government waste and inefficiency. But I also embrace the conservative principle that citizens should pay their bills, including the cost of what their government provides.

To help create a political climate in which Americans can talk sensibly about taxes, we have to start by talking sensibly about taxes with our children. Many of us have already acknowledged the wisdom of having The Sex Talk or The Drugs Talk or The Bullying Talk with our sons and daughters when the right time comes.

Maybe it’s also time to make The Tax Talk with our kids a part of the popular culture.

This week seemed as good a time as any.

Danny Heitman, a columnist for the Baton Rouge Advocate in Louisiana, is the author of “A Summer of Birds: John James Audubon at Oakley House.”

Twitter Followers: 3,955

Facebook Likes: 2,423 Make the news • Letters to the editor — Opinions on business-related issues or coverage of issues by Inside Tucson Business are encouraged and will be published. Submit letters to the editor via email at editor@azbiz. com. Letters also may be mailed to Letters to the editor, Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087. Letters must include the writer’s name and telephone number. Inside Tucson Business reserves the right to edit and may not print all letters that are received.

STAFF

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

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

ACCOUNT EXECUTIVE LAURA BOHLING lbohling@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

ACCOUNT EXECUTIVE ALAN SCHULTZ aschultz@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAN GIBSON dgibson@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

ACCOUNT EXECUTIVE DAVID WHITE dwhite@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

CARTOONIST WES HARGIS

InsideTucsonBusiness.com

APRIL 20, 2012

$5,=21$ 02817$,1 /$.(

ESTATE AUCTION 866-673-9270 UHGĂ&#x20AC;HOGJURXS FRP

+XDODSDL 0RXQWDLQ .LQJPDQ $= 4QFDUBDVMBS 7JFXT t 1SJWBUF -BLF t 'U &MFWBUJPO

5 TRACTS WR $FUHV Pine Lake Inn (Former Bed and Breakfast) Lakeside Cabin (Lakeside Deck/4.3 Acres) Plus 3 Additional Parcels (From 1.7 to 6.7 Acres)

,Q FRQMXQFWLRQ ZLWK 7,0( 5HDO (VWDWH 'HYHORSPHQW //&

May 5

Macular Degeneration?

Find out if special telescopic or microscopic glasses can help you see better.

Call for a FREE telephone consultation

Toll Free 1-888-243-2020 6MĂ&#x201E;JLZ PU! .PSILY[ Â&#x2039; :\U *P[` Â&#x2039; 2PUNTHU Â&#x2039; -SHNZ[HMM Â&#x2039; ;\JZVU

Dr. Paul Woolf, Optometrist

Errol Rummel, OD NJ Lic # 270M00073700

www.ialvs.com

smarter tools friendlier service you could save $522* Call 1-877-891-9732 to get your fast, free car insurance quote.

Hiring?

*National average annual savings based on data from customers who reported savings by switching to Esurance between 1/1/10 and 5/19/10.

MORE OPINION LEADERS READ INSIDE TUCSON BUSINESS THAN THE DAILY STAR BUSINESS SECTION.*

Call 623-2350 to place your ad today. *Media Audit Feb-Mar 2010

76.7% of Inside Tucson Business readers NEVER use websites in their job search.*

Call 623-2350 to place your ad today. *Media Audit Feb-Mar 2010

Inside Tucson Business has more readers than the Daily Star Weekday Employment ClassiďŹ eds.*

Call 623-2350 to place your ad today. *Media Audit Feb-Mar 2010

23

24 APRIL 20, 2012

INSIDE TUCSON BUSINESS

Tuesday, May 1, 2012 5:30pm â&#x20AC;&#x201C; 7:30pm

Lodge on the Desert Steven Eddy Jeff Ell Ryan Field Nikia Gray Christina Huyett Joseph Kroeger Nathan McCann Frederick Peterson Brandon Rodgers

306 N. Alvernon Way

$25 per person*

RSVP by April 25th Register online at www.insidetucsonbusiness.com/upandcomers Call 520-295-4236 or email: jahearn@azbiz.com