Inside Tucson Business 05/25/12 by Territorial Newspapers

SUPPLY CHAIN OPPORTUNITIES Regional logistics hub envisioned from Marana to Sinaloa PAGE 5

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • MAY 25, 2012 • VOL. 21, NO. 52 • $1

PAGE 21

Introducing ng Brent DeRaad aad Tucson’s new tourism chief wants to draw attention on Page 3

A lack of laborers Migrant workers rs pull up roots due to weak economy Page 7

Homeowners ers opting to remodel Roger Yohem photo

Competitive pricing icing boosts activity Page 19

Good news at the pump this Memorial Day Inside Tucson Business This Memorial Day weekend, motorists in most parts of the U.S. will find gasoline plentiful and in most cases at the lowest price it has been in two years. That’s not quite the case in Arizona, where prices have been falling but supplies have tightened due to issues that have temporarily shut down refineries along the West Coast. This week, the average price for regular in Tucson was $3.63½ per gallon,

down 2½ cents per gallon over the past week, according to AAA Arizona’s Fuel Gauge survey. A year ago the average was $3.60 per gallon. AAA is forecasting the national average this weekend will be $3.66 per gallon, which is down 26 cents a gallon since the beginning of April. With the price of crude oil falling below $90 a barrel Wednesday, some energy analysts believe it looks as if the price of gas for the rest of the summer could be coming down even more.

Energy analysts say falling prices at the start of the summer driving season is a positive sign for consumers’ pocketbooks. Gasoline is a staple that most Americans purchase – the average household will spend about $3,000 this year at current prices – so any reduction in price gives them additional money to spend on discretionary items. The price reduction also helps consumers psychologically: as the price approached $4 a gallon on a national basis they felt increasingly squeezed.

In Arizona, Tucson continues to have the lowest average price for gas while Flagstaff has the highest, averaging $3.90 per gallon, unchanged over the past week. The statewide average price is $3.77 per gallon, down from $3.79½ a week ago. In San Diego this week, AAA said the average price was $4.32½ per gallon, down about a penny gallon in the last week.

Material from the Christian Science Monitor was used in this report.

2 MAY 25, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

MAY 25, 2012

NEWS MEET BRENT DeRAAD

New tourism chief wants others to get as excited about Tucson as he is By Patrick McNamara Inside Tucson Business

BIZ FACTS

With more than a decade of tourism marketing experience behind him, Brent DeRaad is still taken by the uniqueness of Tucson and Southern Arizona and wants to step up marketing so that others see it, too. “Really what I’m excited about is the Sonoran Desert, it’s the most beautiful desert I’ve encountered,” DeRaad said. “We definitely need to grow our budget to enhance that ad- Brent DeRaad venture recreation.” He said the ideal would be to have marketing campaigns in as many as 10 major markets, including New York and Los Angeles. In addition to the outdoor recreation activities available in Southern Arizona, DeRaad says he wants to capitalize on the popularity of attractions such as the Titan Missile Museum, the Pima Air and Space Museum and Old Tucson Studios. DeRaad arrived in April as the Metropolitan Tucson Convention and Visitors Bureau’s (MTCVB) new president and CEO, taking over from Jonathan Walker, who retired after nearly 19 years. “I had a great run in Scottsdale,” DeRaad said, who was executive vice president of the Scottsdale Convention and Visitors Bureau from 2001 until taking the Tucson job. Originally from Iowa, DeRaad, 45, moved to the Phoenix area in 1986 to attend Arizona State University. He graduated from there with a journalism degree

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

Skål International United States of America and Gray Line of Tucson are sponsoring a welcome reception for Brent DeRaad, new president and CEO of the Metropolitan Tucson Convention and Visistors Bureau.

Wednesday (May 30) 5:30 - 7:30 p.m. Marriott University Park, 880 E. Second St. Cost is $10 RSVP by Monday (May 28) at info@graylinearizona.com and went on to earn a master’s in mass communication. He worked for the Fiesta Bowl, City of Scottsdale and the Greater Phoenix Convention and Visitors Bureau before taking the job in Scottsdale. He and his wife have two teenage boys. DeRaad said the Scottsdale bureau was able to increase the bed tax rate and allocation to the bureau. The City of Tucson and Pima County fund the MTCVB through bed taxes. Funding tourism-promotion organizations through local bed taxes is common practice and has proven successful, DeRaad said. “What we found in Scottsdale was that for every $1 of bed-tax money spent, $3 in sales taxes were brought in,” he said. Unlike Scottsdale, however, contributions from local governments in Tucson, which make up 95 percent of the MTCVB budget, have decreased in recent years. In 2007, DeRaad said Scottsdale and

Tucson were on equal footing in terms of budget, with both receiving about $10 million. Now, going into the 2013 fiscal year in July, Scottsdale is looking at a budget of $11.5 million while Tucson’s is going to be about $6.3 million. “That definitely puts Tucson at a competitive disadvantage,” DeRaad said. Another disadvantage DeRaad has had to contend with early in his tenure is the closure of the downtown Hotel Arizona, adjacent to the Tucson Convention Center, and the only downtown hotel with more than about 50 rooms. “The biggest challenge for a convention center is to have a hotel in walking distance,” DeRaad said. “Our ability to compete for that convention business is limited at best.” DeRaad also looks to try to mend fences with Pima County following a performance audit it had commissioned last year that took MTCVB leadership to task for a lack of transparency, accountability and a complacent attitude toward leaders of the governments. DeRaad said concern among local officials was understandable and that he would work to build trust. “One of my top priorities was to meet with political leadership,” DeRaad said. “When you have a county and city government investing millions of dollars in an organization, they certainly have the right to see what they’re getting for their investment.” That investment is important to the region as whole too, with more than 20,000 people working in related industries and $2 billion of tourism-related spending pouring into Southern Arizona annually.

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

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAN GIBSON dgibson@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

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

Lifestyle magazine subsidiary files Chapter 11 bankruptcy A real estate subsidiary of the parent company of Tucson Lifestyle magazine has filed for Chapter 11 bankruptcy reorganization as it seeks to force a restructuring of its loan on the eastside shopping and office complex that houses the magazine’s offices. Conley Holdings LLC, headed by president and CEO James E. Conley Jr., made the filing after defaulting on a $2.7 million loan and being unsuccessful in negotiating a restructuring for the Plaza Santa Fe Square, a 44,570 square-foot center on the southwest corner of Tanque Verde and Sabino Canyon roads. Kasey Nye, attorney for Conley in the bankruptcy filing, said the bankruptcy doesn’t directly involve the magazine, which is a separate subsidiary of Conley Publishing Group Ltd. Nye said he anticipates a speedy restructuring resolution because Conley has more than $1 million worth of equity in the center. In the court filings, the company said the bankruptcy was “a result of the combination of the general market downturn, the construction at the Sabino Canyon and Tanque Verde intersection, and a very aggressive loan amortization schedule.” As of April 11, the loan on Sante Fe Square had an outstanding principal balance of just under $1.6 million. An explanatory statement from Penny Kottke, chief financial officer for Conley Publishing, included in the bankruptcy filing said her company did not make its November 2011 payment and began seeking to restructure the loan. After initially being rejected by note holder Columbian Mutual Life Insruance Co., another note holder said gave assurances that it would restructure the loan so Conley brought it current as of the end of 2011. But Columbian Mutual never agreed to meet with Conley, so his company stopped making payments again in January and continued to seek a meeting to restructure the loan. On April 20, after not communicating at all with Conley since January, Columbian Mutual initiated foreclosure procedings. Conley responded with a check for $99,300.54, which it said included unpaid principal and late fees but it was rejected.

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

6 8,9 10 11 12 12 14

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

15 18 19 20 20 23

4 MAY 25, 2012

INSIDE TUCSON BUSINESS

NEWS Workforce dropouts drive unemployment rate down Tucson’s unemployment rate in April was 6.6 percent, down a full percentage point from March and down 1.4 percentage points from April 2011, but 80 percent of the drop from March is attributed to people who’ve dropped out of the available workforce in the region, according to the Arizona Office of Employment and Population Statistics. The available Tucson workforce consisted of 456,400, down from 460,100 in March and 466,700 in April 2011. The report says 1,300 jobs were added between March and April. That was not the case year-over-year where the number of people with jobs fell by 2,800 or 0.7 percent and the workforce dropped by 10,300, or 2.2 percent. Tucson’s unemployment is not seasonally adjusted. Arizona’s unemployment rate, which is seasonally adjusted, dropped to 8.2 percent in April down from 8.6 percent in March. In April 2011 it was 9.6 percent. The national unemployment rate in April was 8.1 percent, down from 8.2 percent in March and 9.0 percent in April 2011. April’s job gains were above historic averages, with 84 percent coming from the private sector with the professional and business sector accounting for 46 percent of the gains.

High-school students attend two-day ‘Brain Academy’

Since Congress has been unable to make headway to change the U.S. Postal Service, Postmaster General Patrick Donahoe says he will go ahead with previously announced plans to close mail sorting facilities. The Tucson facility, 1501 S. Cherrybell Stravenue, is to be closed by February. About 100 sorting facilities will be closed across the country, with 48 to be closed this summer. It will take up to two years to close the rest. The closures are an attempt to stem losses at the Postal Service, which is on track to lose $21 billion by 2016. Postal Service officials say 147 employees will be affected by the Tucson closure, but all will remain with the Postal Service but assigned to other positions. For Tucsonans, the closure will mean longer delivery times as all mail will be trucked to Phoenix for sorting. Next day delivery will no longer be available in Tucson.

Arizonans not traveling as far for Memorial Day More Arizonans are forecast to travel this Memorial Day weekend but they won’t travel as far did last year, according to AAA Arizona. More than 700,000 will travel at least 50 miles over the weekend, up 1.6 percent from last year. The forecast says they will travel an average 680 miles and spend a median $650, both about half what they did for Memorial Day 2011. Michelle Donati, spokeswoman for AAA Arizona, said much of that has to do with the fact fewer people will travel by air this year. Nearly nine out of 10 will drive to their destinations.

Carondelet

Postal Service facility to close in February

Students who attended the 2012 Carondelet Neurological Institute Brain Academy were: Rachel Dick, Tanque Verde High School Abbigail Dockery, Salpointe Catholic High School Juenne Fernando, Sabino High School, Tucson Unified (TUSD) Jocelyn Guzman, Catalina Magnet High School, TUSD David Hahn, University High School, TUSD Karen Leon, Catalina Magnet High School, TUSD Jerry Levitski, Tucson High School, TUSD Omar Lorta, San Miguel High School, Cristo Rey Karina Loyola, San Miguel High School, Cristo Rey Michael Malena, Pueblo Magnet High School, TUSD Saffie Mohran, Tanque Verde High School Jake Noonan, Salpointe Catholic High School Juliana Provencio, University High School, TUSD Namrah Shahid, Catalina Foothills High School Noelle Soltero, Pusch Ridge Christian Academy Bonnie Song, St. Gregory College Preparatory School Meaghan Sweet, Sabino High School, TUSD Rubendario Valencia, Catalina Magnet High School, TUSD Makele White, City High School Emma Wilford, City High School Ethan Wilson, University High School, TUSD

Students got the chance to tour an operating room during the Carondelet Neurological Institute’s Brain Academy last week.

By Patrick McNamara Inside Tucson Business Where will the next generation of neurosurgeons come from? Doctors at Carondelet Neurological Institute want to promote interest in the field among Tucson’s high school students. “We hope to give students an opportunity to explore a career path that really needs the best and brightest,” said Dr. Eric Sipos, a neurosurgeon with Carondelet Neurological Institute partner organization Western Neurosurgery Ltd. To that end, Carondelet and Western Neurosurgery created the Brain Academy, a two-day symposium where high-school juniors get to meet with medical professionals and learn the basics of the neurological sciences in hospital and laboratory settings. On May 18 and 19, 21 students from 12 Tucson-area high schools participated in the 2012 Brain Academy. They were selected from a group of 60 applicants. Students spent the first day of Brain Academy at the Carondelet Neurologic Institute at St. Joseph’s Hospital where they met with doctors and therapists who described the nature of work in the neurological sciences. Therapists described to students different types of brain injuries and how they

can manifest in patients. Students also spent time in a laboratory where they were able to examine, and even tough, human cadaver brains. After donning sterile, white coveralls — bunny suits — the students were given a tour St. Joseph’s technologically advanced BrainSuite iCT operating rooms. Sliding doors divide the rooms where a CT scanner on tracks can slide from one side to the other, maximizing the number of patients that could be served. In the BrainSuite, students learned how the CT scanner can produce real-time images during surgeries, which can assist doctors in better treating patients. Brain and spinal column images are displayed on large screens where the surgeons view internal images of patients taken moments earlier. The students also were able to handle various surgical tools and instruments used in the operating room. On the second day of Brain Academy students went to the Carondelet Neurological Institute’s regional neurological sciences conference where hundreds of experts attended presentations covering the latest advances in treatment for many brain disorders. Sipos said Brain Academy gave Carondelet an opportunity to give back to the Tucson community.

“This is a way for Carondelet to reach out to the community, which has been so supportive,” he said. The academy also can help to stimulate the interest of the next generation of neurological scientists. More importantly, Sipos said, the academy can spark an interest in young people for the right reasons. Sipos said many people seek to enter medicine because they have a parent in the field or because the lure of a high-paying job, not out of a genuine desire to help people. “These are all reasons not to go into medicine,” Sipos said. “If you choose to go into my field for those reasons, I don’t want you.” This was the second year of the Carondelet Brain Academy. Eligible students were required to have a 3.0 grade-point average and provide two letters of recommendations. Carondelet also awarded four of the students a $1,250 scholarship each to use for their college educations. Those students were selected based on participation in the academy and on the quality of essays they submitted as part of their academy application.

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

InsideTucsonBusiness.com

MAY 25, 2012

NEWS Sonoran Regional Business Conference

This Week’s

Tucson is at the ‘T’ crossroads of global logistics opportunity

Good News Ritz-Carlton is top 10 spa Spa fans who read Condé Nast Traveler magazine voted the Ritz-Carlton, Dove Mountain No. 3 on the 2012 list of the top resort spas in North America. The only other spa in Arizona to make the top 10 was Mii Amo resort in Sedona. Two other resorts in the Tucson region made the top 100: the JW Marriott Starr Pass Resort & Spa was No. 30 and the Miraval Resort & Spa was No. 73. Condé Nast Traveler compiled rankings for nearly 29,000 responses to its Readers’ Choice Survey. Omphoy Ocean Resort, an 18-month-old resort at Palm Beach, Fla., was No. 1.

By Roger Yohem Inside Tucson Business

The Tucson

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

El Con building coming down Otis Blank

Major international cargo corridors literally converge to form a “T” on Tucson, creating a lucrative opportunity as a logistics crossroads. To move products to market, the region’s air, highway and rail networks are a strategic strength. To the west, the Port of Long Beach in California is overflowing with containers from Asia and other global suppliers. In Mexico to the south, the seaport at Guaymas, Sonora, is aggressively expanding its infrastructure. And to the east, offloaded cargo in Houston is re-loaded for distribution by rail and truck. “The Tucson region is the springboard to logistics, border trade and commerce. It is an important link in cross-border relationships, the supply chain moves in both directions,” said Oro Valley Mayor Satish Hiremath. “Our region does not end at the border, success depends on regional and international partnerships.” Hiremath made his remarks before about 150 attenees at the Sonoran Region Business Development Conference May 18. The event, put on by Caballeros del Sol and the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), was held at the Westward Look Wyndham Grand Resort and Spa. Attendees included representatives of economic development, business and government from Southern Arizona and the states of Sonora and Sinaloa in Mexico. MTCVB vice president Felipe Garcia challenged the group to think globally, beyond the congested shipping issues in California and Texas. For the Tucson region, “it is supply chain opportunity. More money in Sonora will translate into more visitors to shop and businesses to invest in southern Arizona,” Garcia said. Specifically, Ford Motor Co. is investing $1.3 billion to expand its manufacturing facilities in Hermosillo, Sonora. In addition to production of the 2013 Ford Fusion, the company will expand production there of the Lincoln MKZ. “In the automotive industry, Sonora has a distinguished reputation for producing high-quality products at very competitive operating costs. The Hermosillo plant is recognized as one of the best in the world,” said Ricardo Brown, representing the Sonora Economic Development Council. There are about 80 automotive companies employing more than 50,000 people in Sonora. There are more than 20 international suppliers co-located at Ford’s plant. The

Ricardo Brown explains Sonora’s aggressive economic development strategy.

company’s expansion plans will add 1,000 direct jobs to an existing base of 3,400 workers, plus another 7,000 indirect jobs. Additionally, for the construction phase alone, 1,500 temporary jobs will be created. “We have a very strategic logistic location. We have connectivity to the deep water seaport in Guaymas and access to the U.S. east and west coast. Automotive is our priority and we also have major industries in aerospace, mechanics, IT, electronics and medical,” Brown said. Guaymas is seen as an up-and-coming aerospace cluster. In April, the aerospace division of Rolls-Royce announced plans to open a procurement office for components for its jet turbine engines. Seventeen aerospace companies, including Sargent Aerospace & Defense and Honeywell International, already operate there. Brown said auto partnerships are being pursued with car makers Audi, Toyota and Hyundai. Each company is interested in taking advantage of the region’s logistics, trained workforce, and access to the U.S. market. That is the greatest opportunity for Southern Arizona, “to get involved in developing the supply chain.” Brown said more regional companies would be welcome, to support or replace existing suppliers in California and Detroit. “The door is always open to supply companies coming in,” he said.

Establishing a “regional view” toward global commerce is an extremely valuable step, added the MTCVB’s Garcia. The Tucson region is competing with trade corridors around the world. On both sides of the border, “everyone will benefit by pulling together as a region. The connectivity, it starts in Marana and goes all the way south to Sinaloa. That is our logistics region, so let’s think and act that way,” he said. Another positive step would be re-establishing passenger train service between Tucson and Mexico, Garcia added. Marana Mayor Ed Honea said the town “owes a huge debt of gratitude to our friends across the border. We are fully aware of the power of the Mexican consumer. A large portion of our sales tax revenue comes from Mexican citizens who come to shop in our stores.” Taking a cue from Oro Valley’s Hiremath, Honea hung out the Marana welcome mat. “We are very supportive of ways to work with the business people of Mexico. Our council chooses to be a catalyst for business because commerce is the foundation of success for any community,” Honea said. “I welcome the opportunity to meet with anyone about an investment in Marana or maybe a Marana investment with you.”

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

Environmental abatement has been started and physical demolition will follow this summer to take down the former Macy’s building at El Con by the end of September. The El Encanto Neighborhood Association was in court this week in what may be a last-ditch effort to stop Walmart from building and opening a new store on the site. The hope is that Pima County Superior Court Judge Jeffrey Bergin will issue his ruling within a couple of weeks.

BMW sets sights on Hermosillo It looks as if Ford Motor Co. is about to get another automaker as a neighbor to its 1.5 million square-foot in Hermosillo, Sonora. BMW is getting ready to set up shop, those who know the details aren’t revealing them. Sonoran economic development officials accidentally let word of BMW slip out while visiting Tucson last week to attned the Sonoran Business Development Conference. But they quickly caught their slip and buttoned their lips.

Mexicans swayed Tiffany Back in 2006 when jeweler Tiffany & Co. was looking at potential store locations, executives were romanced by La Encantada, 2905 E. Skyline Drive, with data about how much money comes across the border to shop in Arizona. Of the 24 million Mexicans coming through Arizona’s ports of entry, 64 percent come to shop. And for the Tucson region, they leave behind $1 billion a year. Tiffany execs were convinced.

6 MAY 25, 2012

INSIDE TUCSON BUSINESS

NEWS PUBLIC NOTICES Selected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIES

Era of fence-building, manpower ‘surge’ at border is at an end

Chapter 11 - Business reorganization Elias Y. Freij and Obdulia M. Freij, 7157 S. Missiondale Road. Principal: Elias Y. Freij and Obdulia M. Freij, joint debtors. Assets: $883,861.31. Liabilities: $1,115,196.83. Largest creditor(s): Bank of America, Simi Valley, Calif., $305,017.00; Flagstar Bank, Troy, Mich., $267,630.00; and American Home Mortgage Service, Irving, Texas, $215,576.00. Case No. 1210829 filed May 16. Law firm: Eric Slocum Sparks Patrick J. Rassier, 5100 W. Arivaca Road, Amado. Principal: Patrick J. Rassier, debtor. Assets: $1,245,482.01. Liabilities: $429,454.00. Largest creditor(s): Barbara J. Rassier, Los Angeles, $192,205.00 (disputed). Case No. 12-11037 filed May 17. Law firm: Kristopher R. Rezagholi, Phoenix Conley Holdings LLC doing business as Santa Fe Square and formerly known as Conley Printing LLC and Citizen Printing LLC, 7000 E. Tanque Verde Road, Suite 11. Principal: James E. Conley Jr., president/chief executive officer. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Dodge County Treasurer, Juneau, Wis., $13,975.00 (filing so far includes only unsecured creditors). Case No. 12-11105 filed May 18. Law firm: Quarles & Brady

FORECLOSURE NOTICES Ventana 20/20 LP 5800 and 5855 N. Kolb Road (condominium units in The Greens and The Greens East) 85750 Tax parcel: 114-68-0010 through 114-68-0150, 11468-0170 through 114-68-0220, 114-68-0260, 114-680280, 114-68-0300, 114-68-0320 through 114-68-0380, 114-68-0400, 114-68-0410, 114-68-0430, 114-68-0470 through 114-68-0510, 114-68-0530 through 114-68-0600, 114-68-0660, 114-68-0720 through 114-68-0740, 114-680760 through 114-68-0830, 114-68-0850 through 114-680880, 114-68-0900 through 114-68-0920, 114-68-0960, 114-68-1050, 114-68-1060, 114-68-1090, 114-68-1100, 114-680-1130, 114-68-1150, 114-68-1170, 114-681190, 114-68-1210, 114-68-1340 through 114-68-1360, 114-68-1380, 114-68-1410, 114-68-1480, 114-68-1520, 114-68-1540, 114-68-1540, 114-68-1620, 114-68-1670, 114-68-1690, 114-68-1700, 114-68-1700, 114-68-1740, 114-68-1770 through 114-68-1790, 114-68-1840, 114-68-1870, 114-68-1890, 114-68-1900, 114-68-1940, 114-68-1990, 114-68-2020, 114-68-2070, 114-68-2120, 114-68-2140, 114-68-2230, 114-68-2260, 114-68-2300, 114-68-2310, 114-68-2380, 114-68-2480, 114-68-2490, 114-68-2530, 114-68-2540, 114-68-2580 and 114-68-2640 Original Principal: $30,300,000.00 Beneﬁciary: East-West Bank, El Monte, Calif. Auction time and date: 11:30 a.m., Aug. 6, 2012 Trustee: T.D. Service Company, 4000 Metropolitan Drive, Suite 400, Orange, Calif.

LIENS Federal tax liens Roof Ops Inc., 1750 N. Stone Ave. Amount owed: $125,172.84. Aria International Inc., 9040 S. Rita Road, Suite 236. Amount owed: $17,238.58. Miriam D. Cosey LLC, 2114 W. Grant Road #24. Amount owed: $23,145.22. Perma-Glaze Inc., 1671 S. Research Loop. Amount owed: $46,641.70. Law Ofﬁce Stellisa Scott PLLC and Stellisa Scott, 239 N. Church Ave., Suite 101. Amount owed: $1,454.90. Pony Express Concrete Curbs LLC and Jose J. Mendivil Jr., 4565 W. Teton Road. Amount owed: $52,713.56. Tucson Fleet Transmission & Transaxle Exchange Corp., 2208 N. Stone Ave. Amount owed: $6,964.55. IBA Associates LLC, 2450 N. Pantano Road. Amount owed: $55,573.50. Imagine Internet LLC and Joseph A. Ambrose, 7670 E. Broadway, Suite 280. Amount owed: $12,527.78. A&L Auto Care and Arturo P. Estrada, 4325 S. Sixth Ave. Amount owed: $7,886.13. Hardy Rooﬁng and James Norman Hardy, 2862 N. Sparkman Blvd. Amount owed: $11,067.17. Elite Business Installations LLC and Hector Hernandez, 8911 N. Veridian Drive, Marana. Amount owed: $26,925.25. Fred J. White DDS PC, 3822 E. Fifth St. Amount owed: $4,511.50.

By Lourdes Medrano The Christian Science Monitor With apprehensions of illegal immigrants at a 40-year low, the U.S. Border Patrol is shifting its strategy away from fence-building and a manpower “surge” at the border and toward one centered on intelligence and identifying threats to national security. To some, the shift is overdue — a recognition that the huge expenses incurred under the former policy are out of proportion to its achievements. To others, it is folly to step back from an approach that, they say, has played a vital role in driving down illegal border crossings. The new strategy, which border patrol chief Michael Fisher sketched for a House panel earlier this month, is crafted around the idea of risk assessment. It is the clearest indication yet the Obama administration intends to concentrate on intercepting repeat crossers and other potential threats to national security, according to a recent Associated Press report that included an interview with Fisher. Government officials have said in the past that frequent border crossers may be among the most likely to be involved in criminal smuggling of drugs and humans. Measures to tackle the growing problem of corruption among border patrol agents are also part of the plan, the AP report said. Moreover, illegal immigrants caught trying to sneak into the U.S. will increasingly face consequences that are more serious than simply being deported. In some areas, including the busy Tucson sector, which remains the most popular crossing point, illegal border crossers already face jail time. Researchers attribute the big decrease in border crossings partly to beefed-up enforcement and partly to a sour U.S. economy and changed migration patterns in Mexico, home to nearly 60 percent of the people living in the United States without authorization. The new strategy is appropriate, given the low numbers of people now coming across the border, says Rick Van Schoik, director of the North American Center for Transborder Studies at Arizona State University in Tempe. “Everyone, I think, has started to recognize that we have the assets that we need, and they need to be more strategically and optimally deployed. That’s one reason you’re not seeing new calls for (more) fencing by most of Congress.” The border patrol has grown to 21,000 agents, and the U.S.-Mexico border is now fortified with cameras and other high-tech surveillance. In 1996, Congress approved funding for thousands of agents and set

aside dollars to extend the border wall. The new strategy does not emphasize new fencing. State Sen. Steve Smith, R-Maricopa, for one, thinks little of the border patrol’s new priorities. “Our federal government, they don’t see the magnitude of this problem,” says Smith, who last July launched a fundraising website to build a state border fence. “It’s folly … to stop putting up things that we know work, that we know are an impediment,” he adds, saying fencing is part of the solution, along with manpower and technology. For years, immigrant advocacy groups have pressed for change in border patrol tactics. Tighter border enforcement in California and Texas in the mid-1990s pushed the flow of illegal border crossers to Arizona, where remote desert areas became the top entry point for migrants, some of whom perished making the journey. “Fences now exist in all but the most remote and impassable areas, the ratio of migrants to (enforcement) personnel is at historic lows, and the ratio of dollars per apprehension is at historic highs,” concludes a yearlong study by the Washington Office on Latin America, a human rights advocacy group, and Mexico’s College of the Northern Border. “Meanwhile, it is not even clear how much of the reduction in migration owes to

security measures — though some certainly does — and how much owes to other factors like recession and fear of organized crime,” states the study, which was released in April. “Additional dollars for current border security priorities will yield little additional payoff and are unnecessary.” It’s evident that heavy funding for the U.S. Border Patrol is no longer a priority, says George McCubbin, president of the National Border Patrol Council, the union that represents most border patrol agents. Part of the reason is that resources were wasted, he says, on a plan to add $1 billion in technology along the 2,000-mile U.S.-Mexico border to serve as a “virtual” fence. “It didn’t do anything for the American public,” McCubbin says of the failed project, known as SBInet. He also acknowledges a problem with corruption inside the agency, but says agency administrators bear the responsibility. In trying to fulfill Congress’s mandate to hire thousands of agents within a certain time frame, background checks were put off until after agents were already on the job, McCubbin says. “The negative result of all that is, we hired a bunch of bad people,” he adds. “It’s a concern for all of us.”

InsideTucsonBusiness.com

MAY 25, 2012

NEWS

As tide of illegal immigrants goes home, what will be the economic impact for U.S.? The steady stream of immigrant workers who used to line up at Tim Dunn’s farm near Somerton, ready to pick vegetable seed crops like black-eyed peas and garbanzo beans, has mostly dried up. “We just don’t see people walking up, looking for jobs like they used to,” he says. Now he has to pay a labor contractor to find enough people to tend his 2,200 furrowed acres under the harsh Sonoran desert sun near Yuma. The dwindling supply of labor available to Dunn illustrates a significant shift in migration from Mexico, which has caused illegal immigration to drop to its lowest levels in at least a generation. Even as states loudly debate new immigration restrictions, research suggests the illegal immigration has slowed. The migration explosion that since the 1970s had pushed millions of men, women, and children into the United States has fizzled, says Douglas Massey, a sociologist at Princeton University and codirector of the long-term, binational Mexican Migration Project. “We’re at a turning point, and what unfolds in the future remains to be seen. But I think the boom is over.” Massey’s research shows that after the U.S. recession hit, the illegal population fell from about 12 million to 11 million, where it has hovered since 2009. (About 60 percent of the illegal population is Mexican.) Similarly, Homeland Security estimates released in March suggest that while the number of unauthorized immigrants living in the United States grew 36 percent between 2000 and 2011, from 8.5 million to 11.5 million, that growth plateaued in 2010 and 2011. “With no change in either direction, we’re roughly at a net zero,” says Massey, and adds that it’s something unseen since the late 1950s. The 2004 movie “A Day Without a Mexican,” in which California grinds to a halt when Mexican laborers suddenly disappear, satirized a thesis that is now a subject of reallife debate among experts. What if the workers that farmers, hotels, and restaurants have relied on for decades don’t come back? Will crops rot, beds stay unmade, and dirty dishes pile high in restaurants? Those sectors can’t outsource labor; so will they slow, downsize, and will that create ripple effects across the already strained U.S. economy? Experts agree that illegal immigration has declined sharply in recent years and cite the overall lack of work as the main reason many Mexicans choose to stay home.

Photo by Melanie Stetson Freeman, The Christian Science Monitor

By Lourdes Medrano The Christian Science Monitor

Laborers picking winter lettuce near Somerton in February 2009. As more legal and illegal immigrants stay home, there is concern about how it will affect the U.S. labor pool.

But the big debate is how permanent the trend is. Most experts expect the flow to return once the U.S. economy rebounds. But some say there are other factors at play that could keep Mexicans home, including more access to legal U.S. work visas, border enforcement efforts on the U.S. side and drug-war insecurity on the Mexican side, demographic shifts in Mexico, and growing economic incentives there. In the more than a dozen states that require businesses to confirm employment eligibility through the Internet-based federal program E-Verify, employers are in a corner. “The employers just really don’t have an option,” says Libby Whitley, president of Mid-Atlantic Solutions in Lovingston, Va. Her company handles visa applications for 600 employers who use temporary legal workers, mostly from Mexico. She adds that the farm labor workforce is 75 percent illegal. Whitley has noticed growing interest in the H-2A visa program that brings in temporary seasonal farmworkers. But employers still shun these visas, saying the program — which requires housing provisions and set wages — is too bureaucratic and costly. Advocacy groups long have maintained the program is fraught with employer abuse. Massey says spot shortages are possible in sectors that employ large numbers of

Mexican workers, particularly agriculture, but he believes that a gradual shift toward the use of guest workers may offset any potential labor deficiencies. Mexicans in growing numbers are securing visas that allow them to hold temporary U.S. jobs legally. “The workers that are coming into the United States are not just agricultural workers, they’re workers in the non-agricultural sector, and increasingly, they’re skilled workers,” Massey said. The U.S. State Department reports a 53 percent increase in temporary visas for seasonal farm work issued between 2006 and 2010. And other visa categories are driving the expansion too, including those for professional health and technology workers under the North American Free Trade Agreement. But even with the visas, the farm labor situation suffers, says David Dyssegaard Kallick, a senior fellow at the Fiscal Policy Institute, a nonpartisan think tank in New York. Those jobs “really do seem to go begging when immigrants are pushed out, at least temporarily.” In the long run, Kallick says, the U.S. labor market probably would adapt: “Maybe wages and working conditions would go up enough to make the jobs more attractive, or maybe some farms would close up shop. Ba-

sically though, I don’t think dishes wouldn’t be washed in restaurants without immigrants to do it.” He says the flow of immigrants will return when the demand for workers is back, although “we’re not anywhere near there” yet. “As long as the large wage differences between Mexico and the U.S. exist, there will be incentives for people to endure the real risks of crossing illegally,” says Judith Gans, manager of an immigration policy program at the University of Arizona. She says that as jobs do become available, the pressure on the border will correspondingly increase. In the long term, the changes in Mexico and shifts in migration in all of Latin America may ease the pull north of the border, Gans adds. The impact of fewer illegal immigrants coming into the U.S. will depend on how long it takes for the economy to bounce back, says Audrey Singer, a senior fellow at the Brookings Institution, a Washington public policy group. “In the intervening time, a lot can happen in a place like Mexico, where unemployment is relatively low right now,” she says. “Birthrates have dropped and the demand for workers has been rising. For young people entering the workforce, it may mean more opportunities and less reason to leave.”

8 MAY 25, 2012

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10 MAY 25, 2012

INSIDE TUCSON BUSINESS

By Alan M. Petrillo Inside Tucson Business

The difficult economy has taken its toll of construction-related firms, but at least some in Southern Arizona have found ways to cope and even thrive. That’s the case with Buchanan Electric Inc., an electrical contractor that made the switch from residential tract home construction work to commercial renovation and tenant improvement jobs, as well as the custom home business. Buchanan Electric, owned by husband and wife Jeff and Susan Tolin, owes its continued success, according to Jeff Tolin, to its long-time employees, as well as the various visions its clients ask them to implement. “We enjoy this business because every project is different,” he said. “The vision from each client is unique to their taste and needs, and when the dust settles you can step back and see the result of your labors, which is tangible and real.” Tolin pointed to his employees — electricians Mark Nilsen, Joseph Gasmen, Al Munyon and helper Erik Nilsen — as a major force in keeping the firm in the black. The employees transitioned well in the change from residential to commercial work, which is not always an easy thing to do, he said. “They take enormous pride in their work,” Tolin said, “and we are very proud of their work ethic and the professionalism they exude.” Buchanan Electric was started by Craig Buchanan in 1975 and incorporated in 1986. Jeff Tolin, who followed his father Jim into the construction industry, apprenticed with Blue Star Electric in Tucson in 1982, and began working for Buchanan Electric in 1987. When Buchanan wanted to retire in 1997, he offered the Tolins an opportunity to purchase the business. Jeff Tolin recalls that it was “a big risk because we were raising a young family and it would

require Susan to resign her position with Pima County Health and Human Services Department to run the office.” The couple took the risk and bought the business in 1998. These days, in commercial work, Buchanan Electric tackles new construction, remodels, tenant improvements, service upgrades and consultation. On the residential side of business, they are specialists in custom home work, from new construction, BIZ FACTS through remodeling, Buchanan Electric additions, 1241 W. Monte Vista St. repairs and www.buchananelectronic.com service (520) 884-9225 changes. Two projects Buchanan Electric recently closed out were the Hub Restaurant and Ice Creamery and the Playground Bar and Lounge in downtown Tucson, both owned by Kade Mislinski. Buchanan Electric worked with general contractor Cutshaw-Yeager Construction on the two projects, which Tolin called “especially important to us because they raise the bar in the revitalization of downtown Tucson. We are happy being a small part of that revitalization.” Tolin said Buchanan Electric is also working with Peach Properties owner Ron Schwabe on a couple of commercial renovations near downtown and anticipates more work in that area. Buchanan Electric also handled the electrical work for the new Marana Mortuary Cemetery, a Leslie’s Pool Supply store in Green Valley and several custom homes. Susan Tolin says that “for a lot of companies in construction, the state of business is more peaks and valleys, which is very unpredictable. You have to get out of your comfort zone and go after the work you’re best suited for. That’s how you weather the storm.”

Courtesy Buchanan Electric

PROFILE Employee skills and customer vision drive Buchanan Electric’s success

Buchanan Electric electrician Mark Nilsen and electrician assistant Erik Nilsen, put the final touches on a sign for the Playground in downtown Tucson.

As for the future, she said Buchanan Electric will concentrate more in its new niche of small to mid-sized commercial projects, as well as custom homes. Jeff Tolin thinks one of the biggest challenges in his business comes in working with owners and architects, and implementing their vision. “We have to make sure what their vision is for the space in terms of mood and lighting,” Tolin said. “We want to know what appearance or presentation they want for their building and want to make sure it comes out the way the owner

wants. Working through the extra layers of architects and the General Contractor between us and the owner takes good communication.” But arguably the biggest challenge facing any small business in a depressed economy, Tolin noted, is having to wear many hats. “First is getting the work, then doing the work properly, overseeing the work to be sure it’s the way it should be done, and finally making sure we get paid promptly,” he said. “You can get worn pretty thin wearing all those hats.”

InsideTucsonBusiness.com

MAY 25, 2012

MEDIA

More, but maybe not better, comedies coming to TV this fall By David Hatfield Inside Tucson Business The annual “upfront” presentations by the broadcast networks have been completed. Last week, I passed along the verdicts from the network execs on shows that got cancelled. This week, we check in on the shows that made for excitement among advertisers and others — “upfront” is so named because the networks try to sell as much commercial time as they can “upfront” ahead of the start of the new season. There will be more sitcoms. It’s logical, when done right sitcoms can be extremely lucrative and it happens to be a genre of programming that cable networks — whether it’s basic cable or the HBOs and Showtimes of the world — haven’t been as successful. According to trade reports, though, the networks may be lowering the bar for the coming season, noting that some comedies that have been borderline ratings successes are coming back. Shows such as NBC’s “Whitney,” “Up All Night,” “Community” and “Parks and Rec” and ABC’s “Happy Endings” and “Don’t Trust the B---- in Apt. 23.” CBS, which has had more success with sitcoms, didn’t keep any that weren’t ratings successes. And among the networks, CBS is the one that will introduce more new dramas than comedies in the fall. If those who saw the fall presentations are an indication of potential success, two comedies that are getting some of the best reactions are NBC’s “Go On” starring Matthew Perry and “Partners,” which is CBS’ only new comedy. “Go On,” which is scheduled to air at 8 p.m. Tuesdays on KVOA 4, has Perry as cocky sportscaster Ryan King who is required by his boss to join a support group. The backstory is

Fall TV that he just lost his wife in a car accident. “Partners”, 7:30 p.m. Mondays on KOLD 13, is based on the lives of creators David Kohan and Max Mutchnick, who created “Will & Grace.” They’ve been long-time best friends and business partners but that relationship is tested when one gets engaged to be married. At the other end of the spectrum, the comedy that appeared to get the least reaction — the trades called it an uncomfortable silence — was a show called “The Neighbors,” 8:30 p.m. Wednesdays following “Modern Family” on KGUN 9. It’s about a family that buys a home in a gated community in New Jersey only to find out their neighbors — all their neighbors in the community — are from the planet Zabvron where, among other things, men bear children and they cry green goo from their ears. Another one that didn’t play well to the crowd was NBC’s “Guys with Kids,” 8 p.m. Wednesdays KVOA 4, about three 30-something dads trying to hold on to their youth. Jimmy Fallon is the executive producer. New dramas that piqued curiosity include CBS’ “Vegas,” 9 p.m. Tuesdays on KOLD 13, starring Dennis Quaid and Michael Chiklis in

a series based on the true story of former Las Vegas Sheriff Ralph Lamb, and ABC’s “666 Park Ave.,” 9 p.m. Sundays KGUN 9, about the residents of a New York building who’ve made a Faustian contract. Series that will be returning in the fall, include: • ABC (KGUN 9): Second-season renewals went out to “Last Man Standing,” “Suburgatory,” “Scandal,” “Once Upon a Time” and “Revenge” (in addition to the already noted “Don’t Trust the B---- in Apt. 23”.) Also returning will be “Body of Proof,” “The Middle,” “Modern Family,” “Castle,” “Private Practice,” “Grey’s Anatomy,” “Dancing With the Stars” and “The Bachelor.” • CBS (KOLD 13): “2 Broke Girls,” “Two and a Half Men,” “Big Bang Theory,” “How I Met Your Mother,” “Mike & Molly,” “The Amazing Race,” “Blue Bloods,” “Criminal Minds,” “CSI: Crime Scene Investigation,” “CSI: NY,” “48 Hours Mystery,” “The Good Wife,” “Hawaii Five-O,” “The Mentalist,” “NCIS,” “NCIS: Los Angeles,” “Person of Interest,” “Survivor” and “60 Minutes.” • Fox (KMSB 11): “American Dad,” “American Idol,” “Bob’s Burgers,” “Bones,” “The Cleveland Show,” “Family Guy,” “Fringe,” “Glee,” “Hell’s Kitchen,” “New Girl,” “Raising Hope,” “The Simpsons,” “Touch” and “The X Factor.” • NBC (KVOA 4): “The Voice,” “Parenthood,” “Law & Order: SVU,” “30 Rock,” “The Office” and, in midseason, “Smash.” • CW (KWBA 58): “Gossip Girl,” “Nikita,” “Hart of Dixie,” “America’s Next Top Model,” “The Vampire Diaries,” “90210” and “Supernatural.”

Names in news Sean Mooney has been named a weekend co-anchor at KVOA 4, replacing Brandon Gunnoe who is off to Boston where he’ll be

weekend anchor at WHDH, the NBC affiliate. Mooney, a graduate of the University of Arizona, also spent time as an anchor in Boston, working at the CBS affiliate for a year before returning to Tucson in 2000. Mooney also has been a news anchorman in the New York market, working at WWOR. His career goes back to 1988 when he made a name for himself working as an announcer for WWF Wrestling. Since returning to Arizona Mooney has worked as a reporter and producer for Fox Sports Net and run his own production company. His brother is wellknown Tucson commercial photographer, Chris Mooney. Meanwhile, Gunnoe is moving on after a quick two years in Tucson. Coming from Fort Myers, Fla., where he had been a weekend anchor for four years, Gunnoe was first a co-anchor on KVOA’s early weekday morning program “Tucson Today” and then moved to the weekends in November 2011. One other change at KVOA recently is the arrival of meteorologist John Patrick on the weekend newscasts replacing Chris Nallan, who has parted ways with the station and is apparently looking to pursue other opportunities, as they say. Patrick arrived in March from Yuma, where he was the chief meteorologist on the CBS affiliate. He’s a Phoenix native. Now it can be told: KGUN 9 weekend sports anchor Jake Knapp is headed for Phoenix where he’s going to work at KPNX, the NBC station. The station revealed last month that Knapp was leaving after six years but wouldn’t say where he was headed. His last day on the air at KGUN is Sunday.

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

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12 MAY 25, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Tucson restaurateur takes a slice of San Diego’s Little Italy

Casino Del Sol’s AVA Amphitheater to rock with music this summer

Now that our daytime high temperatures have members of Tucson Originals are back with $20 specials. You can find them all online at http:// topped 100, you can hear the sound of car doors tucsonoriginals.com/ . There are conditions and slamming and tires squealing as we zonies make limitations on each of the offers. tracks for the sand, surf and cooler There are a couple of $20 specials climes of San Diego. Tucson I think stand out as being especially restaurateur Massimo Tenino has good values: figured out his own way to enjoy • The Dining Room at Lodge on both Tucson and San Diego. the Desert, 306 N. Alvernon Way, is Tenino, chef and owner of offering two burgers made of Tavolino italian restaurant in Plaza grass-feed beef and two local draft Colonial in the Catalinia Foothills, beers after 5 p.m. has just opened Isola Pizza Bar in the • Feast, 3719 E. Speedway, is Little Italy section of San Diego. offering two appetizers and two glasses The San Diego restaurant, MICHAEL LURIA of wine (priced under $10) until 6 p.m. named after his grandmother, is an Mondays through Saturdays. intimate place featuring 14 different pizzas. But there are also selections of antipasti and salads and a salumeria featuring Italian cured meats. As of July 1, the Tea Room at Tohono Chul Park, In keeping with the family theme at Isola, 7366 N. Paseo del Norte, will become the Tohono Renino prominently features wines from Pietro Chul Garden Bistro. Along with the name change, Rinaldi, a winery in Piemonte, Italy, owned by his Jason Hartenbach and Patrick Fahey will take over brother Paolo. the operation from Albert Hall and Lila Yamashiro, When you’re in San Diego, check out Isola who have been running it the past three years. Pizza Bar. It’s open every day except Monday Hartenbach, of River’s Edge Catering Co., starting at 11 a.m. and until midnight on Fridays and Patrick Fahey, whose career as a chef and and Saturdays, 10 p.m. other nights. restaurateur has included Keaton’s and the • Isola Pizza Bar, 1526 India St., San Diego — Ocotillo Café at the Arizona-Sonora Desert www.isolapizzabar.com — (619) 255-4230, but Museum, have teamed in other ventures, they don’t take reservations including a food truck called the Mobile Bistro.

Community Center, 3800 E. River Road, Concerts will rock Casino Del Sol’s AVA featuring Judith A. Kramer paintings of Amphitheater this summer. Next up, at 8 p.m. “abstract architectural and geometric Thursday (May 31) is Chickenfoot, the explorations.” The show is on supergroup formed by singing display through June 27. The show legend Sammy Hagar, guitarist Joe features some dynamic imagery Satriani, bassist Michael Anthony that reminds one of geometric art and drummer Chad Smith. deco and early 1920s graphic Tickets are $25 to $45 and can design. be bought online at www. The other exhibit is at the casinodelsol.com/ava-amphitheJoseph Gross Gallery, 1031 N. ater . Casino Del Sol is at 5655 W. Olive Road on the UA campus, Valencia Road. and features artwork by Josh Other concerts coming up this Keyes titled “Above and Below.” summer: German rock band HERB STRATFORD These eco-surrealist paintings Scorpions performs June 17, present a unique vision of the Chicago and the Doobie modern world mixing humor and Brothers share the stage July 11, irony in a perfect blend. The show will be up Joe Cocker and Huey Lewis and the News through Aug. 30. perform July 15, Earth, Wind and Fire will be here July 31, British soul and R&B singer-songwriter Seal is on Aug. 3, Duran Duran plays Aug. 12, Crosby, Stills and Nash is Sept. 5, and This weekend’s big movie release is “Men Def Leppard and Poison perform Sept. 12. In Black III” with Will Smith revisiting the

Tea Room to bistro

Temps up, prices down With Tucson’ rising temperatures also come falling prices on restaurant specials. This weekend being Memorial Day, is when most restaurants crank up the specials that will be with us through Labor Day. The local independently owned restaurant

Details about the new menu at Tohono Chul are still being worked out. Meanwhile, fans of Hall and Yamashiro need not panic as the couple continues to operate their Acacia restaurant, 3001 E. Skyline Drive in Gallery Row.

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

Film

More music The Friday Night Live free concerts at Main Gate Square continues at 7 p.m. June 1 with a performance by the jazz fusion group Sylvan Street. Main Gate Square on University Boulevard west of the University of Arizona. The Friday Night Concert series happens twice monthly though August and is presented by the Southern Arizona Arts and Cultural Alliance (SAACA).

Art Two new art exhibits of note this week. First is an exhibit at the Tucson Jewish

world of secret government agencies protecting us from a host of aliens. Joining Smith this time around is Josh Brolin, playing a young Tommy Lee Jones. Also opening this weekend is the new horror thriller “The Chernobyl Diaries,” which follows a group of young thrill seekers as they tour abandoned ruins in Russia only to find something has survived the radiation leak, and is now hunting them.

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

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InsideTucsonBusiness.com

MAY 25, 2012

GOOD BUSINESS WOMEN IN BUSINESS

Make your employees raving fans and your customers will be, too Have you wondered why some employees are without passion? Does it seem like they are working because they have to, not because they want to? Are you pleasantly surprised when you receive JAN WOODS marginal customer service? Does customer service seem like a thing of the past? Have business owners and employees forgotten that people do business with people they like? Do you worry about how to get your customers to return to your business again and again? Have you wondered about how to get new customers to select your business over a competitor? If you actually answered “no” to those questions, then chances are your employees express passion in each and every customer interactions and, as a result, your business has raving fans. If you found yourself answering “yes” to the questions, then here are 12 simple goals you must meet to create life-long raving fans for your staff and your customers: 1. You have a fully trained staff that provides caring and attentive customer service with every customer interaction. 2. Your staff loves their jobs and they show it to your customers every day. 3. Your staff displays a high degree of passion, product knowledge and comprehensive follow through each time they speak with a customer. 4. Your staff answers the phone by the third ring with genuine warmth and a smile. 5. Your staff believes the reason you are in business is because of satisfied customers. 6. You encourage your staff to form lifelong business relationships, actively network and fervently give of their time to local charities. 7. You have ethical and informative advertisements and company information in print and on all applicable social media sites. 8. You encourage customers to fill out satisfaction surveys so you can continuously improve your customer service. 9. You are aware your receptionist is your first opportunity to market your business positively, so you do not use an impersonal automated calling tree. If a customer must be placed on hold, you have recorded educational business information for your customers to listen to. 10. You make sure every day that your business is easily accessible, clean, attractive and customer focused.

11. You role model outstanding customer service to your staff. 12. You inspire your team to greatness through positive coaching and by continually telling them that the reason you are successful is because of their outstanding service to our customers. Attracting customers to your business through a clever marketing plan may be a first step to your success, but the step that assures your customers will return year after year, is your staff. Take time to sit down with employees once a month and read out loud your customer satisfaction surveys. Discuss solutions to negative comments and celebrate winning comments. Ask your staff if they realize the importance customer satisfaction plays in the business’s growth and sustainability. Ask them to give you an example of the last time they filled out a customer satisfaction survey and why they filled it out. Routinely ask each staff member to give at least one example of outstanding customer service they provided in the last month, how that customer reacted and if that customer has returned? Collectively, everyone can determine what her or his customer service secrets are and put them into a successful action plan. Outstanding customer service provided by fully trained, passionate and caring staff does not have to be a thing of the past. It should become your most powerful marketing tool resulting in lifelong raving fans.

Contact Jan Woods, hospital administrator and co-owner of Veterinary Specialty Center of Tucson, through her company’s website, www.vscot.com or call (520) 795-9955. Veterinary Specialty Center of Tucson has received Copper Cactus and Arizona Small Business Association awards for customer service and as a “best place to work.”

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14 MAY 25, 2012

INSIDE TUCSON BUSINESS

BRIEFS GET ON THE LIST

Next up: Internet service providers, Website designers, Computer hardware retailers, Software companies 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:

• June 1: Law firms • June 8: Internet service providers, Website designers, Computer hardware retailers, Software companies • June 15: Retirement communities, Active adult retirement apartments, Assisted living facilities • June 22: Office machine retailers, Office furniture retailers, Office supply retailers • June 29: Grocery stores, Drug stores 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

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NEW IN TOWN

DoubleTree opens suite hotel at Tucson airport Tucson now has a second lodging establishment with the name DoubleTree. The DoubleTree Suites by Hilton Tucson Airport

is now open at 7051 S. Tucson Blvd. at the entrance to Tucson International Airport. The 204-room suite hotel was formerly a Radisson Hotel that has added product enhancements throughout the property, including a redesigned lobby, Guests will also receive DoubleTree’s signature warm chocolate chip on check-in. Finnegan’s Restaurant will remain a part of the hotel. The hotel is owned by Tucson Suites LLC and operatee under a franchise license agreement with a subsidiary of Hilton Worldwide. The new hotel’s website is www.tucsonairportsuites.doubletree.com and the phone is (520) 225-0800.

TELESERVICES

Geico sets plans to fill 200 job openings Insurance provider Geico hopes to fill more than 200 job openings in its Tucson customer service, claims and sales divisions. The company says it plans to hire entry-level candidates who possess effective verbal and written communication skills, excellent computer and multi-tasking skills, and demonstrated job stability. Additionally, college graduates can apply for Geico’s Supervisor Leadership Program, an entry-level, fast-track management training program that develops future business and team leaders. Candidates for this selective program are required to have a bachelor’s degree in business, or significant business coursework, leadership skills, as well as an overall GPA of 3.2 or higher. Geico will host a career fair from 4-6 p.m. June 21 at its Tucson office, 930 N. Finance Center Drive, and is planning to host career fares the third Thursday of each month. Information can also be found online at Geico’s website — www.geico.com and click on careers. Martha Furnas, regional vice president for Geico, said the company is reaching new heights, noting that a Tucson associate recently sold the company record 11 millionth policy. “It’s truly a great time to be here,” Furnas said. Geico, short for Government Employees Insurance Company, is a Berkshire Hathaway company.

RETAIL

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RA Sushi parent agees to be bought for $296M Benihana Inc., operator of RA Sushi restaurants as well as its namesake chain, has agreed to be bought out by the private equity firm Angelo Gordon & Co. in a deal valued at $296 million cash. The company, which is nearly 50 years old and publicly traded since 1983, said in March that it wanted to “explore strategic alternatives” to try to boost profits. The company had considered a sale in July 2010, about the time it closed its only

InsideTucsonBusiness.com

MAY 25, 2012

BRIEFS Benihana restaurant in Tucson. A sale was never consummated. The company has operated a RA Sushi restaurant in La Encantada since 2004.

TRANSPORTATION

Tucson traffic isn’t all that bad, report says A new study rating traffic congestion in the nation’s largest 100 metropolitan areas gave Tucson good marks. The NRIX Traffic Scorecard Annual Report for 2011 put Tucson near the bottom of the list in terms of time spent in traffic, at No. 93. Over the past 12-month period, Tucson commuters spent an average of 2.4 hours in congested traffic, according to the study. Phoenix ranked No. 37. Its commuters spent about 12.7 hours in congestion over the past 12 months, according to Inrix. The ten worst cities for hours wasted in traffic last year were: 1. Honolulu (58 hours) 2. Los Angeles (56 hours) 3. San Francisco (48 hours) 4. New York (57 hours 5. Bridgeport, CT (42 hours) 6. Washington, D.C. (45 hours) 7. Seattle (33 hours) 8. Austin (30 hours) 9. Boston (35 hours) 10. Chicago (36 hours)

HOSPITALITY & LEISURE

Tucson ranks near bottom on analysis of parks A new analysis of parks in the 40 largest cities in the U.S. places Tucson at No. 31. The analysis conducted by the Trust for Public Land, rates cities’ parks based on

acreage, access, services and investment. The rankings took into account land owned by regional, state and federal agencies when analyzing cities. On a 120-point scale, the Trust for Public land gave Tucson 46 points. Tucson also received low marks for park acreage, which accounts for about 2.7 percent of the city’s total land area, according to the analysis. The analysis also found that Tucson has about 2.17 playgrounds for every 10,000 residents. San Francisco was No. 1 on the list, followed Sacramento, Boston, New York and Washington, D.C., made up the top five cities for parks, according to The Trust for Public Land. Phoenix was ranked No. 16 and Mesa was No. 36. Fresno, Calif. Earned the bottom spot of the survey. Read the entire study at parkscore.tpl.org.

COMMERCIAL REAL ESTATE

Condos near Ventana indefault on $30M loan A notice of trustee’s sale has been filed on The Greens at Ventana Canyon, an upscale apartment rental/for-sale home community at 5800 and 5855 N. Kolb Road. According to public records, Phoenix–based Ventana 20/20 LLC has defaulted on a $30.3 million note and the property will be sold at public auction in August. The 21-acre development offers luxurious one, two and three-bedroom units, ranging in size from about 820 to 1,200 square feet. The property includes three pools, a spa, fitness center and clubhouse. The foreclosure includes about 110 units on both sides of Kolb Road, known as the

Greens and the Greens East, according to the filing. Overall, there are about 265 units at the site. The beneficiary is East-West Bank of El Monte, Calif., which also is handling the public auction. It is set for 11:30 a.m., Aug. 6 at the Pima County Courts Building, 110 W. Congress St.

GOVERNMENT

Rio Nuevo board seeks millions more from city Infighting between the City of Tucson and its former charge, the Rio Nuevo Multipurpose Facilities District has reached a new low. Lawyers for Rio Nuevo’s board have served the city with legal papers stating the special taxing district board’s intent to seek $25 million for a supposed breach of sublease agreement regarding the Tucson Community Center (TCC). An agreement between the city and Rio Nuevo penned in 2002 and updated in 2009 designates the city the tenant of TCC. Rio Nuevo owns the convention center portion of the TCC while the city owns the Music Hall and Leo Rich Theater. The claim letter accuses the city of not maintaining the TCC as required under terms of the lease agreement. In an earlier back-and-forth with the board, city attorneys said the property has been maintained as evidenced by improvements the city has made and that it remains in regular use. Rio Nuevo attorneys dispute the claim, pointing to a list of needed capital improvements to the TCC that city produced last year as proof the cite has not been maintained. The Rio Nuevo board made similar legal threats against the city late last year, de-

manding $47 million and some west downtown properties the city owns. The two parties had been attending mediation sessions aimed at resolving the previous legal dispute. Some progress had been made on that front, with an initial agreement to share costs on some repairs to the TCC arena. In light of the recent dispute, city officials decided to pull out of the mediation. The city has 60 days to settle the claim with Rio Nuevo. After that time, the board can chose to pursue legal action.

No contract renewal for Sahuarita town manager Sahuarita Town Manager Jim Stahle will not have his contract renewed when it expires in a year. The town council voted unamimously against a new contract after an hour-long closed-door session. Stahle, who initially went to work for Sahuarita in 1999 as planning and zoning director, has been the town’s manager since July 2001. Stahle previously worked in Yuma. After the May 15 vote, Stahle said he had no inkling of any lack of support from the council, saying, “it’s difficult to hear, but you move on, it’s the life of a town manager. I’ve been proud of my time here. I appreciate being given the opportunity to be here. I have only positive things to say. I’ll talk to my family. A new door will open.” Mayor Duane Blumberg declined to comment about the council’s vote. Stahle came under criticism in 2008 from some residents for failing to expand the town’s wastewater treatment facility fast enough to accommodate growth. The criticism was driven largely by developers of Rancho Sahuarita.

PEOPLE IN ACTION ELECTIONS DM-50, an organization aimed at improving the quality of life for Davis-Monthan Air Force Base airmen and their families, has elected Mike Grassinger as president. Grassinger is a principal at The Planning Center. Other new members elected to serve the DM-50 include: Timothy Amalong, Velocity Air; Boyd Drachman, Drachman Insurance; Jack Harris, The Jack Harris Company; Scott Jones, Raytheon; Clint Mabie, Community Foundation of Southern Arizona; Mary Okoye, Scutari & Cieslak Public

Relations; Randy Rusing, Sundt Corporation; Matt Russell, Russell Public Communications; Eugene Santarelli, S’Relli Consulting; Chip Yetzer, C. Yetzer Builders.

NEW HIRES

AWARDS City of Tucson Environmental Services equipment operators Ruben Rivera and Rene Brockman were awarded first and second place in the side loader competition at the annual Road-E-O. The statewide Road-E-O was sponsored by the Arizona chapter of the Solid Waste Association of North America (SWANA). Competing operators were required to take a written

DAWN BADMAN

drivers’ safety exam and navigate their vehicles and equipment through a series of obstacles to perform exercises simulating everyday encounters. As first and second place winners, they are entitled to compete against operators from the United States and North America in the SWANA International Road-E-O.

DEANNA CONN

MIKE GRASSINGER

{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.

NICK RUIZ

Deanna Conn of Quarles & Brady LLP has been selected as a recipient of the 2012 “Top 50 Pro Bono Attorneys in Arizona” award by the Arizona Foundation for Legal Services and Education. Conn practices in the areas of commercial and intellectual property litigation.

Omni Tucson National Resort has hired Audra Barrios as catering sales. Barrios graduated from Northern Arizona University with a B.S. in hotel and restaurant management. Monterey Court Cafe has hired Dawn Badman as a chef. Badman began her culinary career working for her grandparents, who ran the R&R Cafe near the former Tucson Greyhound Park. Most recently, she was sous chef for Compass Group Dining and Bluefin Seafood Bistro. Prior to that, she worked for Kingfisher Bar & Grill and Cafe Terra Cotta. Paradigm Tax Group

has hired Nick Ruiz to run its new Tucson office. He joins Paradigm from Bancroft & John P.C. where he handled property tax appeals in Arizona and Nevada. Prior to that, he spent three years with a local tax firm handling appeals throughout Southern Arizona. He has a B.S. in regional development from the University of Arizona. PROMOTIONS Tatyana Bresler has been made a partner at Eglin+ Bresler Architects, P.C., formerly Eglin/ Cohen Architects. Bresler earned a masters degree in architecture in St. Petersburg, Russia.

16 MAY 25, 2012

INSIDE TUCSON BUSINESS

MEDIA SOCIAL MEDIA IN THE WORKPLACE

How to use ‘Twitterns’ to promote your company in social media 4. The business or individual providing the opportunity derives no immediate advantage from the activities of the intern. 5. The intern is not necessarily JOHN BALITIS entitled to a job at the conclusion of the internship. 6. The business or individual and the intern understand the intern is not entitled to wages for time spent in the internship. If, for example, CARRIE PIXLER-RYERSON a business tells the intern he or she must increase sales for the company, then such an objective likely indicates the intern is functioning more as an employee, rather than an intern.

Officials at companies looking to cash in on the marketing power of social media might be tempted to think enlisting unpaid summer interns — or “Twitterns” — to manage this advertising medium benefits both parties. Business leaders tend to believe college students gain experience in the workplace while providing the company a no-cost means of promoting goods or services. But companies need to be mindful not to run afoul of federal and state law so Twitterns do not become employees entitled to wages and potentially overtime compensation. The Fair Labor Standards Act (FLSA), the federal law that governs minimum wage and overtime, makes clear that uncompensated interns are exempt from regulation under its provisions only if the following criteria are met: 1. The internship is similar to training that would be given in an educational environment. 2. The internship experience is for the benefit of the intern. 3. The intern does not displace regular employees, but works under close supervision of existing staff.

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In contrast, if the business asks the intern to help monitor the company’s social media accounts, the purpose of which is to educate the intern as to the company’s business model, and explains to the intern that he or she may use this experience in connection with a college thesis, then these facts show the Twittern is actually functioning as an intern. The U.S. Department of Labor, the federal regulatory agency tasked with administering the FLSA, advises that the internship should be for a finite period of time, the end of which is known to all parties before the internship begins. Furthermore, a company should not use an internship as a free look whereby the business can decide whether to hire the individual as an employee following the internship. It is important that businesses take care not to inadvertently create an employment relationship with an unpaid intern. If there is no employment relationship between the intern and the business, at least for purposes of the FLSA, that means the federal minimum wage and overtime rules do not apply. If a company does hire an unpaid, volunteer intern to create and or manage social media platforms, the company should clearly define the parameters of the intern’s position in light of the pronouncements from the Department of Labor and the guidance included in the FLSA. Separate from the logistical concerns of structuring the internship in a way that comports with the FLSA, businesses also should ensure the intern complies with the company’s existing social media policy, notwithstanding the lack of an employment relationship between the parties.

For example, a business retaining an unpaid intern to manage its social media accounts must reach a clear understanding with the intern that the business owns the accounts and retains the right to continue managing and utilizing them when the intern departs. Additonally, the company’s social media policy must inform the intern about what is acceptable content on social media pages. This is particularly important if the intern will be responsible for creating content or managing content that other individuals post online. College students and other individuals entering the job market for the first time are prime candidates to assist businesses with social media marketing because for their familiarity and savviness with technology and its seemingly limitless variety of marketing applications. Companies are free to take advantage of this talent, provided unpaid arrangements for social media interns are structured in ways that comply with the FLSA and guidance offered by the Department of Labor. Creating this structure may be challenging, but can be accomplished with the assistance of experienced counsel who is familiar with social media as well as wage and hour law.

Contact John Balitis, an attorney with Fennemore Craig practicing in the labor and employment area representing employers in arbitration, litigation and administrative proceedings, at jbalitis@fclaw.com. Contact Carrie Pixler-Ryerson, who practices in the area of appeals as well as in labor and employment at Fennemore Craig, at cryerson@fclaw.com.

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InsideTucsonBusiness.com

MAY 25, 2012

TRAVEL

Economic impact study tells more about airport travelers By David Hatfield Inside Tucson Business Some more details are coming out about research for the economic impact study done this spring on Tucson International Airport: • Passenger traffic is equally balanced between visitors and residents. • Among visitors coming to Tucson, 60 percent are leisure and 40 percent are business travelers. • Leisure travelers account for 53 percent of revenues in the region coming in through airport visitors. They stay an average 5.6 days, spending $69.11 per day, totalling more than $214,000 annually. • Business travelers account for 47 percent of revenues, staying an average 3.6 days, spending $144.84 per day, which totals more than $192,000 per year. As reported last month, the study found the airport has a total economic impact on the region of $3.25 billion. By way of a comparison, a study using the same methodology completed in February this year found the airport in Reno, Nev., has a total economic impact of $2 billion on that region. A report issued in January found that the Ted Stevens Anchorage International Airport has a total economic impact of $1 billion on that region. The University of Arizona MBA students and their instructors who did the study said the impact of Tucson’s airport is bolstered ed by a large number of airport tenants who ho contribute jobs and money to the local al economy. The graduating MBAs who did the ecoonomic impact study for the Tucson Airport rt Authority were Allen Sipe, who earned his is degree in accounting; Catherin Weigand, d, who earned her degree in corporate finance; e; Christopher Northey, who earned his deegree in marketing, and Greg Keller, who ho earned his degree in entrepreneurship.

1.3 percent to 10.1 million.

TUCSON INTERNATIONAL AIRPORT APRIL 2012 PASSENGER STATISTICS

American Airlines update

April passenger counts through Tucson International Airport were up 0.2 percent over April 2011, the third consecutive monthly year-over-year gain. This chart shows each airlines’ passenger totals and market share for April 2012 compared with April 2011 and the totals for the first four months of both years.

Airline

April 2012 April 2011 Change Passengers Market Passengers Market Passengers % Share

Nonstop destinations

Southwest

110,146

34.5%

106,724 33.5%

+3,422

+3.2%

Albuquerque, Baltimore (seasonal service ended April 9), Chicago Midway, Denver, Las Vegas, Los Angeles, San Diego

American

73,512

23.0%

71,937 22.6%

+1,575

+2.2%

42,989 13.5%

+4,729

+11.0%

11.2%

35,474 11.1%

+272

+0.8%

32,499

10.2%

37,625 11.8%

-5,126

-13.6%

Fares are up

10,091

3.2%

14,652

4.6%

-4,561

-31.1%

9,106

2.9%

+273

+3.0%

+584

+0.2%

Airlines’ strategy of cutting back capacity to drive up fares seems to be working. Ticket prices for travel from June through August are 4.3 percent from what they were last year, according data compiled for Bloomberg by Airlines Reporting Corp. Year-to-date, airfares are up 3.1 percent. With pent-up demand to travel, the report bodes well for the potential of profitability among airlines. The report was based on data from airlines, noting that neither United Continental Holdings nor American Airlines has released data yet.

Chicago O’Hare, Dallas-Fort Worth, Los Angeles

United (Continental)

47,718

15.0%

Denver, Houston Intercontinental, Los Angeles, San Francisco

Delta

35,746

Atlanta, Minneapolis-St. Paul, Salt Lake City

US Airways Phoenix

Frontier

Denver (service suspended from May 18-Nov. 14)

Alaska

9,379

2.9%

Seattle

Monthly Total

319,091

Year-to-date 1,277,765

318,507

1,252,916

+24,849 +2.0%

Source: Tucson Airport Authority Airline totals include passengers on branded flights operated by contracted carriers: American (American Eagle), Delta Connection (SkyWest), United Express (ExpressJet and SkyWest) and US Airways Express (Mesa and SkyWest).

Lesson learned

Frontier returns As it said it would, Frontier Airlines has put ut out a schedule reinstating flights between Tuccson and Denver as of Nov. 15. In February, y, Frontier said it would switch Tucson to a “seaasonal destination” and as of May 17 service was discontinued. The airline has published its schedule through Jan. 6. When it returns in November, Southern Arizonans might be looking at a different Frontier than they had known the past 11 years the airline served Tucson International. Faced with operating losses, Republic Airways Holdings said it is spinning off Frontier as a separate unit with an eye to possibly selling it. Among changes, Frontier has drastically cut service in other cities, including Milwaukee where it had been the No. 2 busiest carrier. Further, new management says they’re interested in emulating an “ultra low-fare” air-

On May 11 American Airlines officials relented and said the airline would consider merger scenarios as a way to exit Chapter 11 bankruptcy. Last month, Tempe-based US Airways said it had tentative agreements for a merger with American’s three largest unions but so far there’s been no official offer. This week it was reported unsecured creditors and other debt holders formed ad hoc groups to evaluate potential merger scenarios. Meanwhile testimony wraps up this week on American’s request to get rid of its labor agreements. U.S. Bankruptcy Judge Sean Lane has said he will rule on the request by June 22. American is Tucson International Airport’s second busiest airline, last month accounting for 23 percent of passenger traffic.

line has b been used l model d l that h in the h U.S. h d successfully by Allegiant and Spirit, both of which fly to Mesa Gateway Airport. Typically, the ultra low-fare airlines sell seats at a very low price but tack on charges for buying online, checking in, seat selection and baggage. Spirit made news this month when it said that in November it will begin charging $100 at the gate for carry-on bags. The move is being made to encourage passengers to pay the $45 carry-on fee before they get to the gate. One other thing of note about Frontier’s return in November, the airline will be using 99-passenger Embraer 190 jets instead of 138seat Airbus A319s it had been using. The larger

planes have DirecTV, the don’t. l h h smaller ll planes l d ’

Airport traffic is up April passenger traffic at Tucson International Airport was up by less than 600 in April, that’s 0.2 percent, but it kept a three-month string going of year-over-year increases in passengers at the airport. Through the first four of 2012, that airport has served near 1.28 million passengers, a 2 percent increase from 2011. Up the road at Phoenix Sky Harbor, which so far has reported passenger statistics for the first three months of the year, March traffic was up 1.7 percent from a year ago more than 3.8 million. Year-to-day, passenger totals are up

If you haven’t checked lately you might be surprised to learn that it’s no longer always necessary to pay for a round-trip airline ticket to get the lowest fare. Remember, the old Saturday night stay requirement? If you haven’t purchased your summertime leisure travel tickets and find yourself having trouble getting flights that fit your needs, try searching for one-way tickets. A search this week for tickets from Tucson to Milwaukee, Wis., on specific days in January found that every airline flying between the two cities had one-way tickets for sale at exactly half the price of a round-trip. Considering two different airlines offered offered flights that met time constraints, two one-way tickets served their purpose. And don’t even get me started on why a ticket from Milwaukee to Tucson is cheaper than from Chicago to Tucson, even though the flight from Milwaukee connects in Chicago with the very same flight that is coming to Tucson. Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Business Travel appears the fourth week of each month in Inside Tucson Business.

18 MAY 25, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE

Five financial questions to answer if you’re a Gen Xer If you’re part of Generation X — the age cohort born between the mid-1960s and the early 1980s — you’re probably in one of the busiest phases of your life, as you’re well into your working years and, at the same time, busy raising a family. But just as you’re “multi-tasking” in your life, you’ll also need to address multiple financial goals. In seeking to accomplish your key objectives, you may be asking yourself a variety of questions, including the following: • Should I contribute as much as possible to my IRA and 401(k)? In a word, yes. Your earnings on a traditional Individual Retirement Account (IRA) and a 401(k) grow on a tax-deferred basis, so your money can accumulate faster than it would if placed in an investment on which you paid taxes every year. Plus, since you typically make 401(k) contributions with pretax dollars, the more you contribute, the lower your taxable income. And your traditional IRA contributions may be tax-deductible, depending on your income. If you meet income guidelines, you can contribute to a Roth IRA, which provides tax-free earnings, though there are conditions and limitations on amounts. • Should I put away money for my kids’ college education? It’s not easy to fund your retirement accounts plus save money for your children’s college education. Still, college is expensive, so if you feel strongly about helping to pay for the high costs of higher education, you may want to explore college funding vehicles, such as a 529 plan, which offers tax advantages. • Should I pay down my mortgage or invest those funds? Most of us dream of freeing ourselves from a mortgage someday. So, as your career advances and your income rises, you may wonder if you should make bigger mortgage payments. On one hand, there’s no denying the psychological benefits you’d receive from

paying off your mortgage. However, you may want to consider putting any extra money into your investment portfolio to help as you work toward your retirement goals. Work with your TIM BEITHON financial advisor to determine what may be most appropriate for your portfolio. • Do I have enough insurance in place to protect my family? You may have heard that you need seven or eight times your annual income in life insurance, but there’s really no “right” figure for everyone. You may want to consult with a financial advisor to determine how much life insurance is appropriate for your needs. • Am I familiar with my parents’ financial situation and estate considerations? Now is the time to communicate with your parents about a variety of issues related to their financial situation and estate plans. The more you know, the better positioned you’ll be to provide assistance and support if and when it’s needed. Just to name one example, you should inquire of your parents if they’ve designated a durable power of attorney to make financial decisions for them in case they’re ever incapacitated. By answering these questions, you can get a handle on all the financial issues you face at your stage of life. It may seem challenging, but taking the time now can help you better position yourself to reach your financial goals.

Contact Tim Beithon, a financial advisor with Edward Jones, at Tim.Beithon@ edwardjones.com or (520) 546-1839. Beithon’s office is at 9525 E. Old Spanish Trail, Suite 111.

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

Company Name

Symbol

May 23 May 16 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 CEXIQ.OB PRSC UNS

0.05 0.01 13.02 36.60

0.06 0.01 13.34 36.31

-0.01 0.00 -0.32 0.29

0.04 0.01 8.35 32.96

0.97 0.01 15.94 39.25

8.61 0.47 1.55 7.17 54.80 6.14 79.75 18.57 56.10 2.87 16.65 27.15 28.79 21.75 26.67 13.51 83.31 38.78 44.79 10.74 68.80 57.78 16.87 32.73 23.09 48.74 57.62 196.12 29.04 56.47 4.39 34.26 30.50 7.58 48.93 22.16 1.13 28.41 26.19 39.22 57.59 37.05 38.11 29.88 43.52 58.64 27.26 9.30 50.26 40.15 18.84 34.10 56.83 7.25 8.36 41.58 29.32 56.78 14.56 28.14 34.36 22.31 112.49 32.51 11.00 31.09 64.58 31.29 31.74 8.43 19.12

8.49 0.51 1.57 7.11 55.11 6.15 80.59 18.92 56.22 3.76 16.19 26.92 28.85 21.69 26.42 13.28 84.91 38.62 45.16 11.39 68.78 56.90 17.06 32.57 23.45 48.77 57.14 199.73 29.90 55.10 4.19 35.46 30.78 7.69 46.84 22.22 1.13 29.27 29.32 39.11 58.84 37.29 38.57 29.30 43.97 59.57 26.75 9.49 51.13 40.76 18.76 34.29 50.87 8.37 8.21 42.36 29.91 55.32 14.66 29.96 35.27 23.66 112.00 31.98 11.13 31.06 59.19 32.78 31.97 8.40 18.81

0.12 -0.04 -0.02 0.06 -0.31 -0.01 -0.84 -0.35 -0.12 -0.89 0.46 0.23 -0.06 0.06 0.25 0.23 -1.60 0.16 -0.37 -0.65 0.02 0.88 -0.19 0.16 -0.36 -0.03 0.48 -3.61 -0.86 1.37 0.20 -1.20 -0.28 -0.11 2.09 -0.06 0.00 -0.86 -3.13 0.11 -1.25 -0.24 -0.46 0.58 -0.45 -0.93 0.51 -0.19 -0.87 -0.61 0.08 -0.19 5.96 -1.12 0.15 -0.78 -0.59 1.46 -0.10 -1.82 -0.91 -1.35 0.49 0.53 -0.13 0.03 5.39 -1.49 -0.23 0.03 0.31

8.31 0.20 1.52 4.92 51.83 5.96 65.35 17.35 43.77 3.30 12.30 21.40 19.19 14.61 22.80 8.49 70.22 31.16 31.30 6.41 38.99 43.64 8.03 28.85 16.92 28.13 41.22 157.13 27.68 39.87 2.69 25.73 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 7.15 7.15 32.12 20.96 45.28 14.04 24.34 27.62 15.51 77.73 30.93 3.96 20.10 48.31 30.34 22.58 4.44 13.18

16.83 8.89 5.55 11.92 65.79 12.13 83.72 32.85 59.59 7.25 27.10 43.06 30.88 28.99 44.31 14.23 92.10 43.35 46.22 11.58 72.46 70.15 17.91 56.78 30.49 52.88 62.00 210.69 35.79 62.33 5.72 46.49 37.70 13.12 57.39 25.85 1.73 30.12 32.29 42.64 62.83 42.17 40.45 30.00 49.06 70.61 43.18 10.82 54.69 40.36 24.77 40.58 85.90 15.54 12.04 43.64 32.79 58.95 22.39 35.30 39.24 26.50 117.40 58.29 11.73 32.98 62.24 45.34 34.59 9.20 24.71

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

InsideTucsonBusiness.com

MAY 25, 2012

INSIDE REAL ESTATE & CONSTRUCTION INSIDE REAL ESTATE & CONSTRUCTION

Uncertain home market, competitive prices boost remodeling Sales and leases

In th uncertain housing market, one sector that can be overlooked is remodeling. Due to the wave of foreclosures, tighter credit standards, and job conditions, there are potential home buyers who are frozen by indecision. Others, however, see opportunity. With labor and materials at competitive prices, and contractors anxious for work, remodeling is an economical option for homeowners wanting to improve their lifestyle. “Some embark on remodeling projects to make their surroundings more functional and enjoyable, while others want to increase their home’s resale value. Some want to take advantage of the myriad benefits green building offers,” said David Godlewski, president of the Southern Arizona Home Builders Association (SAHBA). “There are those who want to make their homes roomier, or create a floor plan specifically customized to their lifestyle or more accessible to the elderly. Still others want new amenities,” he added. As National Home Remodeling Month comes to a conclusion, Godlewski stressed that “all remodelers aren’t equal.” SAHBA and the National Association of Home Builders recommend homeowners hire only licensed, professional remodelers. A good place to start is with the Arizona Registrar of Contractors Office and the Better Business Bureau. For referrals, SAHBA has a Remodelers Council, a diverse group of 41 members that includes remodelers, builders, designers, appliance and furniture dealers, landscap-

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

TUCSON REAL ESTATE

5/14/2012

5/7/2012

$152,000 4,274 352 430 257

$125,000 4,806 358 449 201

Source: Long Realty Research Center

Otis Blank photo

By Roger Yohem Inside Tucson Business

Remodeling is an economical option for homeowners looking to improve their lifestyle, such as this extensive porch project expansion at a north Tucson home by McCaleb Construction.

ers and designers. The group operates under a code of professional ethics and accountability. “If you’re investing in your home, create the most value for your dollar by making sure the work gets done right,” said Godlewski. When screening remodelers, ask how long they have been in business. Ask if they specialize and what types of jobs they have recently completed. Ask to see a current or completed project and talk with clients about their experiences with the company. Ask these customers if they would hire the firm again. In addition to their professional skills, members of the council also have access to information on tax credits and rebates. Hiring a quality remodeler “can provide increased value to a project,” Godlewski said. Information about the SAHBA Remodelers Council is online at www.sahba.org/ committees .

2 zips sell out again For the second consecutive month, every home listed in two zip codes sold — and then some. Due to a quirk in timing, more homes sold in zip codes 85756 and 85757 than were officially considered active list-

WEEKLY MORTGAGE RATES Program

Current

30 YEAR 15 YEAR 3/1 ARM

3.75% 4.00%APR 3.13% 3.25%APR 2.88% 3.25%APR

Last Week

5/22/2012

One 12 Month 12 Month Year Ago High Low

3.75% 4.00%APR 4.95% 3.13% 3.25% APR 4.22% 2.88% 3.25% APR

4.95% 4.22%

3.75% 3.13%

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.

ings, according to the Tucson Association of Realtors Multiple Listing Service. In zip code 85756, around Tucson International Airport between Interstates 19 and 10, all 34 active listings sold plus six homes not officially listed. In zip code 85757, the far west side near Ryan Airfield south of Ajo Way, 23 homes sold with only 18 being posted in the official inventory. In both neighborhoods, the availability of homes priced near or under $100,000 drove the higher sales. For the entire market, the April median selling price was $134,000 and the average price was $175,766, according to the Realtors report. In April, the most listings were 235 in Vail, followed by 233 listings on the far northeast side near Sabino Canyon in zip code 85750 and 226 in Catalina Foothills zip code 85718.

Buyer sentiment shifts Jonathan Roof, vice president of Mutual of Omaha Bank, closely follows the housing market and recently pointed out an interesting analysis from the Arizona State University W.P. Cary School of Business. The report noted “it seems that almost overnight the supply of low-cost homes has disappeared” in the Tucson and Phoenix markets. Mortgage delinquencies and foreclosures are declining and many lower-priced homes are attracting multiple offers. The Tucson Association of Realtors figures there is about a three-month supply of homes, at about 3,800 units. Clearly, the lowest-priced homes sell fastest and in that category, there is only about one month’s worth of inventory in Tucson. The ASU report concluded that there is a major lesson to be learned: the sudden disappearance of low-priced inventory showed how fast buyer sentiment can shift.

• Store Capital Acquisitions LLC purchased a 21,878-square-foot, free-standing retail building at 7671 E. Broadway for $5.5 million from E&R Cotton Center LLC doing business as La-Z-Boy Furniture Galleries. The buyer is leasing the building back to LaZ-Boy. The sale-leaseback transaction was handled by Velocity Retail Group and Ross Brown Partners, both of Phoenix. • Jefferson Capital Property Holdings purchased College Place apartments, 1601 N. Oracle Road, for $3 million from ROI Properties LLC, as receiver for Oracle Innkeeper LLC. The property consists of 196 units on 270,600 square feet of land. The seller was represented by Beth Jo Zeitzer, ROI Properties LLC. The buyer was represented by Hank Amos, Tucson Realty & Trust Co. • Meritage Homes purchased 49 platted lots in Tangerine Crossing Block 3, northeast of West Tangerine and North Thorndale roads, Marana, for $1.3 million from Tangerine Road Associates, represented by Will White, Land Advisors Organization. The acquisition was the second this month along the Tangerine Corridor for Meritage Homes. It previously purchased 53 platted lots for $1.59 million in Sky Ranch. • DR PM Holdings USA LLC purchased a 7,000 square-foot retail showroom and car lot at 4888 E. 22nd St. for $685,000 from AAA Climate Control LLC, represented by Andrew Sternberg and Robert Nolan, Oxford Realty Advisors. The buyer was represented by Tom De Soller, AZ First Properties LLC. • Oracle Ft. Lowell LLC purchased a 4,593 square-foot former auto repair building at 3200 N. Oracle Road for $425,000 from Bank of the West, represented by Brandon Rodgers and Peter Douglas, Picor Commercial Real Estate Services. • MMK Properties LLC purchased a 1,436 square-foot medical condominium office at 1601 N. Tucson Blvd., Suite 7, for $175,000 from Niadyne Pharma Inc., represented by Tari Auletta, Grubb & Ellis. The buyer was represented by Andrew Sternberg, Oxford Realty Advisors. • Northern Arizona University leased 11,219 square feet at 3895 N. Business Center Drive, Suites 100 and 120, from NTBC Trust Partners LLC, represented by Rob Glaser and Paul Hooker, Picor. The tenant was represented by Mike Gordon with Cresa Partners. • Oscar Campas leased 2,020 square feet at 5969 S. Belvedere Ave. from DeCook Properties LLC. The transaction was handled by Chuck Corriere of Keller Williams Southern Arizona.

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

20 MAY 25, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Step right up, smart people in banking One day back in 2009 or 2010, I was having lunch with a man who at the time was among the higher-ranking Tucson-based executives for one of the “too big to fail” banks. We had become more than just business acquaintances and were comfortable talking socially about family, friends and business. In one of my bolder moments, I suggested a problem that could arise from the government’s stepped-up DAVID HATFIELD oversight of banking would be that decisions dictated by regulators meant his employees were no longer empowered to think for themselves. As a result, he would have a tougher time judging whether he had smart people or dumb people working for him. I thought I might have gone too far when he didn’t respond immediately but looked me straight in the eyes as he thought about it. “You might be right,” he finally said. He is still with the bank and doing well enough to have been promoted. I thought of that exchange after James Dimon, chairman and CEO of J.P. Morgan Chase, acknowledged his bank had lost at least $2 billion in trades that, as he put it, were “flawed, complex, poorly reviewed, poorly executed and badly monitored.” Within hours, Ina Drew, the woman who had been the bank’s chief investment officer the past seven years, was gone. She was thought of well enough that her compensation totaled $31.5 million in 2010 and 2011. So if a decision-maker of her high-ranking caliber is capable of such a fiasco, there’s reason to wonder what has been learned from the 2008 economic meltdown. It has been suggested what J.P. Morgan Chase did was of questionable legality but certainly there was no system in place to stop it. Indeed, some are arguing that the only reason it became public is because of the loss. Had the gamble played out as a profit, nobody would have been the wiser. I suspect my banking friend knows more about the employees under him and enough about them to think they wouldn’t be tempted to do such maneuvers. The trouble is, thanks to a false sense of security given to us by government regulators, we can’t be sure. Indeed, people at other banks have told me that some enforcement is based on models and formulas and fails to take into consideration other meaningful information. Worse, it can be unpredictable. A loan that would have been rejected a year ago, is now OK. Why? Who knows? There should be somebody at a bank we could ask.

Kudos to Roger Yohem Congratulations to Inside Tucson Business’s Roger Yohem on winning a third-place award of excellence from the Arizona Press Club May 19 for his work on a commercial real estate special section last year. Chances are you’ve read the self-congratulatory articles in other publications about their awards but I wanted to take special notice of Yohem’s award because it comes from an organization that doesn’t often reward business publications.

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

EDITORIAL

Dilemma for voters in CD 8 Early voting is underway in the June 12 special election to fill the last six months of former U.S. Rep. Gabrielle Giffords’ term in Congressional District 8 (CD 8). In reality, the term will be even shorter with the U.S. House of Representatives scheduled to take off for half of September, most of October and the first two weeks of November. Then there’s the holiday season. It’s almost enough to make one wonder, why bother? Good question. Three candidates’ names are on the special election ballot but let’s face it, the Green Party’s Charlie Manolakis isn’t going to get elected. So there are really only two candidates: Democrat Ron Barber and Republican Jesse Kelly. Barber headed Giffords’ district office until last year. Kelly, who is a project manager for his family’s business, Don Kelly Construction, came within 4,000 votes — less than a 1.4 percent margin — of beating Giffords in 2010. There are concerns about both candidates, even from within their respective political parties. Democrats are acting genuinely concerned about the challenge their candidate is facing and Republicans say polls show their candidate may well win this time. Although Barber has done well in fund-raising, he is having a tough time now getting voters motivated, particularly in a special election when turnout can be low. Barber also has found himself in a defensive posture on President Obama’s healthcare reform legislation to the point he came across almost John Kerry-like — I voted for it before I voted against it — in trying to explain his position. Barber says that while his former boss voted in favor of healthcare reform that shouldn’t be construed as his stance and now, he says the

legislation needs to be changed. There is also ill-will among Democrats over Barber’s initial indication that he would seek to fill out Giffords’ term in CD 8 but wouldn’t pursue the seat in this year’s regular election in the newly defined CD 2 that takes in most of the same area. Democrats who pledged their support to him and intended to seek the CD 2 seat were double-crossed when Barber said he would run in the regular election. Meanwhile, Kelly’s surging campaign quieted Republicans who thought the tea party candidate wouldn’t dare try to make it to be a three-time loser. It remains to be seen what will become of the three other candidates who ran in the Republican special primary election. So what happens as a result of this election? Barber is not the long-term solution for Southern Arizona. At age 66, he can’t build the longevity that is needed to make a difference in Washington, D.C. For Kelly it’s the opposite. At age 30, his success has come through luck and happenstance. He hasn’t shown an interest in cooperating or trying to work with others, which is why there are no big-name Republicans actively campaigning for him. The unfortunate outcome of this special election is that one of these candidates will win and essentially be able to run as an incumbent later this year. One solution for voters in CD 8 is to wait to see what candidates file next week to run in the new CD 2. Pick one you believe is best for the future and set your sights on getting that person elected. If you’ve got a better idea, let us know because the CD 8 special election is a dilemma without a satisfying solution.

InsideTucsonBusiness.com

MAY 25, 2012

OPINION BUSINESS INK

Memorial Day in Washington, D.C., is an unforgettable way to remember featured two large fountains surrounded by tall pillars. We didn’t know what it was until we stepped onto the plaza and saw the sign: National World War II Memorial. As children of World War II ROGER YOHEM veterans, my wife and I just froze. Long-forgotten memories of our fathers flashed through our minds. On opposite ends of the plaza were two arches marked Atlantic and Pacific, the war’s two great theaters of battle. The white granite pillars, 56 in all, stood in two semicircles leading away from the arches. Each pillar was dedicated to a state and various U.S. war allies and territories. Puzzled, we watched in silent wonder the bustle within the memorial. Many small family groups and individuals were moving about, searching out specific pillars. Obviously, they were looking for their home state but we didn’t know why.

Once at the right spot, they unpacked boxes, blankets and bags. Kneeling down, they laid out items on the concrete apron, items we could not see from where we were standing. Most cried, many prayed and some stood up enwrapped in each other’s arms. Their containers emptied, no one moved. Quietly, the National Park Service rangers approached and talked with several groups. Curious, we walked toward a large pile of items across the plaza. We saw dozens of military uniforms, medals, helmets, rifles, photo albums and official government documents such as enlistment, promotion and discharge papers. Next to another post was a tattered shoe box full of a soldier’s letters. We respectfully looked through it and determined that most were love notes to his girlfriend and future wife. Also scattered about were several American flags, folded with precision into triangular glass cases. At one time, each had been draped over a coffin. One couple told us they had found their grandfather’s rucksack in the basement, forgotten, no longer wanted, but full of stuff from the war. Leaving it here was the best way they could think of to honor him, like the others

Top: The World War II Memorial in Washington, D.C., has become a shrine to military veterans whose families have left over 2 million items in honor of their loved ones.

Yohem family photos

Memorial Day has a simple purpose: to honor those who’ve served in the Armed Forces fighting to defend the freedoms we enjoy in the United States. Years ago while walking toward the World War II Memorial in Washington, D.C., on Memorial Day, the furthest thing from my mind was fulfilling that purpose. It didn’t take much to change that mindset. In 2006, we took a family vacation to D.C. in late May. Although I had been there several times on business, it was the first visit for my wife and our young daughter. Our list of must-see attractions was long but organized, and we methodically moved through our touristy agenda. National Archives. Check. White House tour. Check. And on to Arlington National Cemetery, Mount Vernon, the U.S. Supreme Court, Smithsonian, National Spy Museum, Ford’s Theater, et. al. While at the U.S. Capitol, a congressional college intern from Tucson, let’s call him Josh, gave us a personal 90-minute tour. As we were finishing, he cautiously asked if we’d like to see a piece of Americana that was “off limits.” It was rare, very old and locked up in seclusion. He had an intense historical curiosity about the relic and for weeks, had been looking for an opportunity to slip away. With a young child in tow, we were his cover. Josh led us through a maze of halls, marble staircases, unmarked doors and small elevators far from the public areas. To those with the uniformed authority to stop him, he boldly flashed his security badge Finally, we stood in front of a small, dimly lit room. Behind iron jail-like bars, the only thing there was President Lincoln’s death bier, a wooden pedestal built by government carpenters in April 1865. Josh said it had held Lincoln’s coffin in the building’s rotunda and the White House. We were greatly impressed, and also excited to be standing in a secret part of the Capitol’s basement. Sunday night, we headed for the National Memorial Day Concert on the Capitol’s lawn. The crowds were massive, easily some 200,000 people, and we were still blocks away when the music started. We found an open spot way in the back off to the side. Lee Ann Womack sang “America the Beautiful” and we heard some country tunes from Big & Rich. We couldn’t see the stage or the giant TV screens so we left before the fireworks. The next day, Memorial Day, was another full schedule. Up early, we avoided the big parade as we made our way to see the Washington Monument. From there, we walked across the National Mall’s vast grass fields toward the Reflecting Pool. Our next stop was the Lincoln Memorial. From a distance, we noticed a lot of activity at a plaza at the head of the Reflecting Pool. It

Left: In 1941 while serving in World War II, Roger Yohem’s father took this photo of the Tucson Train Depot during a layover. The train was enroute from an airfield in Texas to California.

that day who were dropping off keepsakes at the memorial in tribute to their loved ones. Attached to many of the mementos were letters to the U.S. government, detailing their relative’s military history and service record. Most closed with scribbles of love and longing for days gone by. I don’t recall who started to cry first. And although our daughter was too young to understand it all, she felt our emotional sadness. Soon, her tears mixed with ours on the pavement. A park ranger came over to us. He said hundreds of World War II veterans were dying each day and their families had turned the plaza into a shrine. Since it opened in 2004, people had made a pilgrimage to the site on Memorial Day to leave behind pieces of their family’s patriotic legacies. Every item is collected by the rangers and placed into storage to be archived. The ranger said more than 2 million pieces had been collected and the government is not sure what to do with it all. Then he asked about our fathers, did they serve? My dad enlisted in the Air Corps. Two of his brothers served in the regular Army. Dad was headed overseas until they found out he could type. He was immediately yanked from the ranks and assigned to supplies and requisitions. He stayed in the states and became a master sergeant. My wife’s father joined the Navy and served in the Atlantic and Pacific theaters. His war time was more dangerous, as he was sent ashore in advance of U.S. troops to locate and cut enemy lines of communications. Both survived the war and returned home to live long lives as hard-working, blue collar family men. The ranger suggested it would be appropriate that we do something to honor their service. After some discussion, he directed us to a nearby gift shop. For each dad, we bought a small American flag and a patriotic postcard. With borrowed pens on top of an ice cream cooler, we wrote our tributes. At the Ohio pillar, we laid down the pieces. We stared at the flags for a long time. It wasn’t much to look at but our thoughts were full of warm memories. There was nothing to say. Overcome by the moment, my wife collapsed to the ground and sobbed. I kneeled beside her, held her shaking hand. The tears came. Our daughter squeezed in between us to snuggle up to her mom. The words on the cards were nothing monumental, just a few thoughts from our hearts, that we loved and missed our dads, two great American heroes.

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

22 MAY 25, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

For the high school class of 2012, there’s an app for that Editor’s note: This is a condensed verion of Superintendent Nic Clement’s speech this month to graduating seniors at Flowing Wells High School. Recently, two seniors visited my office to ask if I would be their guest speaker at baccalaureate. I shared that I was honored and would accept their invitation if they would help me develop some ideas unique to their class. As I opened my laptop to take some notes, one of the students said, “Dr. Clement, with all due respect, how old is that laptop?” Funny, now that I think about it, this laptop is as old as you. They went on to give me the first piece of advice “You might want to upgrade your technology if you are going to speak and connect with us, we are the iGeneration not the Windows 95 Generation”. As hard as it is for me to change, I took their advice and purchased an iPad. Immediately, everyone said I needed to get apps. I had a hard enough time turning it on and finding the plug for my mouse, let

alone downloading apps. Not wanting to let the seniors down, I conquered my “iPad-aphobia” and actually created a couple of apps custom made for the Class of 2012. • Yearbook Translation app NIC CLEMENT — It has been 40 years since I graduated from high school and when I look back at my yearbook, not only are the pictures frightening — Elvis Presley-type sideburns and big hair, really big hair — but I cannot decipher what my friends wrote on the signature page. My first app would take and translate the slang of the day into current terms. For example, punch in the year 1972 and the word “totally” translates to “cool” and the word “rad” translates to “awesome.” Using this app the Class of 2012 in 2052 would

type in words from their yearbooks like “swagg” — and have it translated to cool — and “beast” — translated, awesome. • Legendary Teacher app — I thought it would be totally rad if I created an app that would instantly bring up a video of a legendary teacher from high school who could give you advice or get you motivated when things were getting tough. For example, right now I could use some advice from Mr. Potts, my high school speech and debate teacher — who is still teaching after 47 years — in how to prepare this speech. I can almost hear him saying, “Remember tell them what you are going to tell them, tell them, and then tell them what you told them. Don’t forget, keep it short, and make it fun!” When Flowing Wells High School seniors were asked to identify a legendary teacher for this app, Mr. Chuck Taylor was high on their list. His advice, “Don’t panic, never give up.” We all need some legendary teacher advice in our lives. • Memorable Moment app — Be

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prepared to tear up and don’t let it hit your iPad — Prom 1972 and No. 1 song in the nation started playing, “Song Sung Blue” by Neil Diamond. Lighters came out, swaying in the gym in our powder blue tuxes. Class of 2012, first day of kindergarten, honor roll assembly, first concert with a trombone bigger than me, pep assemblies, science fair blue ribbon, getting your college acceptance letter, this app will need a lot of memory. • Secret to Success app — Touch this app and your yearbook picture appears along with this caption: Class of 2012, you are the secret to your own success. Set goals, finish what you start and do it with heart and passion. You don’t need an app for that!

Contact Nic Clement, superintendent of the Flowing Wells United School District, at clementn@flowingwells.k12.az.us

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

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InsideTucsonBusiness.com

MAY 25, 2012

Support Your Candidate 2012 Election is approaching Support your candidate by purchasing your presidential T-shirts Online

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24 MAY 25, 2012

INSIDE TUCSON BUSINESS

Available this year at a new

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