Inside Tucson Busniess 7/20/12 by Territorial Newspapers

TUCSON’S BRILLIANT BASIS SCHOOLS Home of the nation’s top-ranked high schools PAGE 11

Your Weekly Business Journal for the Tucson Metro Area

Angels among us Funding from above helps start-ups get off the ground Page 3

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The leading edge

Tempronics

Sanofi researchers at forefront of drug development Page 5

Housing analyst Strobeck to retire — will give away business to employee By Roger Yohem Inside Tucson Business Housing analyst John Strobeck, owner of Bright Future Business Consultants, is retiring and will literally give his business to Ginger Kneup, his data assistant for the past 12 years. He says she will rename the firm Bright Future Real Estate Research when she takes over Aug. 1. “After 18 years, I am giving her the business. No cost. She is very intelligent, super at data analysis, and will do extremely well,” Strobeck said. “It was a wonderful good run, very profitable during the housing peak.” Strobeck, 70, launched Bright Fu-

ture in 1994 after a 30-year management career with IBM, during which he joked the company moved him 11 times, making him a housing expert John Strobeck by default. Bright Future collects and analyzes real estate market information throughout Southern Arizona. As a one-stop shop for unbiased data, his main clients include banks, real estate agents, builders, developers and mortgage companies. When the housing market crashed in 2007-2008, the company lost clients. “My customer base has shrunk

drastically, we are not making any money in this economy. In this business, whether there are one or 1,000 customers, you still have to invest all the time doing the work,” he said. “I know Ginger will adjust and make a go of it.” Kneup’s prior experience includes research work for Grubb & Ellis and brokering for Land Advisors. “When I retired from IBM, I needed to stay busy,” Strobeck said. “I’m fortunate I didn’t have to depend on this business for my livelihood.” He also said he’s fortunate he can give it away to a “very deserving” person. Strobeck said he intends to remain

active. He owns another business named DJ John that has developed a following at classic car shows in Arizona and New Mexico where he plays “first generation” rock ’n’ roll music from the 1950s and early 1960s. He says it keeps him busy nearly 50 weekends a year. He also will continue preaching at Mission Valley Church of Christ, 3022 W. Bilby Road, where he has been lead minister for three years. He thrives on “dee-jaying Saturday night, then hurrying back to preach and teach on Sunday.”

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

2 JULY 20, 2012

INSIDE TUCSON BUSINESS

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JULY 20, 2012

NEWS

Angels among us: Funding from above helping startups get off the ground

Frontier abandons plans to resume Tucson flights Frontier Airlines won’t be resuming flights to Tucson International Airport this year after all. Lindsey Carpenter, senior manager of corporate communications for Frontier, confirmed this week the airline has dropped its plans to resume the flights that were scheduled to resume Nov. 15. She said the decision is based on Frontier’s continued efforts to focus on sustainably profitable routes. Tucson passengers who had booked Frontier flights in November and beyond will be given the option of either booking a flight on another airline or having their money refunded. In February, Frontier said it intended to make Tucson a “seasonal destination,” discontinuing its daily flights to Denver as of May 17. The airline later published a schedule showing a resumption of one daily flight as of Nov. 15. Both Southwest and United offer nonstop flights from Tucson to Denver. United has long maintained a hub in Denver, where it is that airport’s busiest airline, with a 41.8 percent market share of passengers through the first four months of this year. Southwest, which only began serving Denver in 2006, has grown rapidly there — and as of March 2011 surpassed Frontier — as the airport’s second busiest carrier so far this year carrying 23.3 percent of the airport’s passengers to Frontier’s 21.5 percent.

By Patrick McNamara Inside Tucson Business For startup companies in their infancy, getting funding can be the most difficult challenge to overcome. When family and friends have given all they can and the banks don’t want to lend to risky ventures, there can be few options. But for some startups, funding can come from a higher source. Desert Angels has funded early-stage startup companies in Southern Arizona for 12 years. The group has poured more than $17 million into 50 companies during that time. “We’re at the cutting edge of risk-reward,” said Curtis Gunn, chairman of the Desert Angels. Unlike traditional venture capitalism, BIZ FACTS which seeks to bring established compaDesert Angels nies to the next level, angel funding focuses www.desertangels.org on companies in their infancies that hold PlayAbility Toys potential for rapid www.playabilitytoys.com growth. But angel-type investing has typically been a high-risk proposition for investors because the companies they endow have yet to establish themselves in the marketplace. In fact, as many as half of the ventures angel funders like Desert Angels support end up failing. But behind the risk lies the potential for large rewards. “It’s a numbers game,” Gunn said. “Every investment we make we look for a 10-x return.” That doesn’t always happen, however. But, about seven percent of investments do make large yields that high. Others come

See ANGELS Page 4

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

Patrick McNamara

Tourists spent 20% more last year in Tucson

Mike Sember of PlayAbility Toys with some of the company’s products that are designed for disabled children.

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

REPORTER INTERN KAITY SITZMAN ksitzman@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.

Tourists spent a record $2.4 billion in the Tucson region last year, according to a new report from the Arizona Office of Tourism. The amount topped the previous yearly record of $2.2 billion spent in 2006 and represents a 20 percent jump over the $2 billion spent in the region in 2010. The report, presented July 12 at Gov. Jan Brewer’s conference on tourism, said the money coming in from tourists directly generated 22,000 jobs in Pima County, and added $537 million in earnings by the private sector and $135 million in tax revenues to federal, state and local governments. Spending by tourists in Tucson represents about 13 percent of the $18.3 billion that was taken in state-wide last year. The state-wide amount didn’t show as dramatic improvement as happened in Tucson, up 3.4 percent from $17.7 billion in 2010.

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

6 7-10 11 13 13 15 15

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

16 18 19 20 20 23

4 JULY 20, 2012

INSIDE TUCSON BUSINESS

ANGELS continued from Page 3

Karl Eller makes slow, but steady recovery Karl Eller, namesake of the University of Arizona business college, was moved into physical rehab Tuesday (July 17) as he continues to recover from a fall from his bicycle during an early-morning ride June 15 in San Diego. The fall resulted in broken and fractured bones on his right side and head. Doctors put Eller into a medically induced coma for about a week to help determine the extent of his injuries and to keep swelling in check. According to a family posting online, the 84-year-old is continuing to make steady but slow progress in his recovery and “experiencing nothing unusual for his type of head injury.” The UA Eller College of Management was named for the Arizona business and media mogul in 1999.

Gas prices fall for 15th consecutive week Gas prices in the Tucson region continued dropping for a 15th consecutive week, according to AAA Arizona’s weekly Fuel Gauge survey. The average price for regular this week was $3.22½ per gallon in Tucson, down a nickel a gallon in the last week and down from $3.48 a gallon a month ago. As it has been most of the year, the Tucson average is the lowest in Arizona. After peaking at about $3.88 per gallon in April, the statewide average has fallen $3.23 per gallon, approaching the lowest prices this year. What’s happening in Arizona is not necessarily the case elsewhere, where AAA reports drivers in 33 states and the District of Columbia are starting to see gas price increases. The most dramatic increases are taking place in the Midwest. Earlier this year, Arizona didn’t see gas prices fall as fast as many of those areas due to production issues at refineries in California but now that production at those refineries is back online, AAA anticipates prices in the state should remain low, at least for the short term. AAA notes that crude prices are starting to increase.

Tucson job losses not as bad as elsewhere in AZ New data shows that while the number of private-sector employees in the Tucson region dropped 2.62 percent from 2009 to 2010, most other areas of Arizona saw even bigger declines. Using 2010 Census data, On Numbers, a research arm of American Cities Business Journals, found that private-sector jobs in Nogales dropped 2.68 percent, Phoenix was down 2.92 percent, Flagstaff was down 3.34 percent, Prescott was down 5.35 percent and Safford was down a whopping 18.45 percent. The only area to see an increase in private sector jobs during that year was Sierra Vista, which was up 2.27 percent.

close. Still many others simply break even. That’s the risk-reward factor angel investors seek. But like many other angel investors, Desert Angels investors take a strong interest in the companies, helping to refine business plans, joining boards of directors and often times getting involved in the day-to-day operations. “We don’t write a check and walk away,” Gunn said. Such has been the case with local company PlayAbility Toys, which manufactures and sells toys for developmentally disabled children. Desert Angels invested in the company about two-and-a-half years ago at the coaxing of one of the Angel’s own. “The business’ presentation didn’t get the Angel’s screening panel excited, but it got me excited,” said Dr. Martin “Marty” Fox, CEO of PlayAbility. Fox said the company’s founder, Bud Fraze, presented his plan to the Angels six months before the group decided to jump in. Fox, however, said the plan energized him from start and invested alone in the burgeoning toy company. He helped Fraze and the company rework a business plan and has worked to get more recognition through search engine optimization efforts, Google ad words, advertising in specialty publications and hitting the circuit of special needs-based conferences. That’s what fellow Desert Angel and now vice president of development for PlayAbility Mike Sember has focused pri-

NEWS marily on. “We try to reach our audience through social media,” Sember said, noting that traditional advertisement would be largely wasted because of the niche market the company caters to. With a background in special education, Fox said he recognized straight away that Fraze had the potential to create an almost entirely new market. “It’s actually a very large, almost completely underserved market,” Fox said. While little data exists on toy sales for developmentally or physically disabled children, Fox said a little extrapolation gives an idea of the potential market. For instance, he said some studies have found that parents on average spend $300 annually on toys for each child. With an estimated 15 million disabled children in the United States, that’s potentially a $4.5 billion toy market that has barely been tapped into. “There’s no one doing what we do, at least to our level,” Fox said. “But it’s a good-news bad-news scenario.” The good news that there’s a market segment to serve, the bad that there are so many disabled children. But, Fox said, these are children that can benefit from well-designed specialty toys that help with motor and cognitive functions. Toys like the company’s top selling product, a ball designed for blind children. That product, Sember said, was inspired by the mother of a blind child whose idea for a toy for her child.

“We were very touched by that story,” Sember said. Despite the investment opportunities in early-stage companies like PlayAbility, Gunn said there’s traditionally been little angel investing in Southern Arizona or across the state. “That’s become a very significant problem in statewide,” Gunn said. The Southwest region lags behind most others in the country in angel funding, according to a report by the Angel Resource Institute. The report shows that angel funding in the Southwest makes up about 7.9 percent of the national total. The same report shows angel funding in California makes up nearly 30 percent of the nation’s total, followed by the southeast with 20 percent, New England with 13 and the Great Lakes region with 11 percent. Funding to healthcare ventures was the most common in the Southwest region, making up more than 42 percent of all funding. Internet ventures were the closest behind with 23 percent. Gunn said he was hopeful that developments like the Arizona Commerce Authority and renewed efforts at technology transfer at the University of Arizona would help to create more opportunities for homegrown industries to flourish. “This is a very entrepreneurial community,” he said.

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

Report: Arizona could lose 49,000 jobs if federal budget cuts take effect By Christopher Leone Cronkite News Service Arizona could lose more than 49,000 jobs if automatic federal budget cuts are allowed to take effect in January, according to a report released this week by the Aerospace Industries Association. The figure represents the direct and indirect job losses resulting from spending cuts mandated in the Budget Control Act of 2011 that could top 2 million jobs nationally. That would boost the national unemployment rate by 1.5 percentage points and lead to a $215 billion reduction in gross domestic product, according to the report by Stephen S. Fuller, a professor at George Mason University’s School of Public Policy. The bulk of job losses in Arizona would be defense-related. Fuller estimated that planned cuts to the federal defense budget could cost the state 35,000 jobs. Tucsonbased Raytheon Missile Systems is currently the state’s largest manufacturing

employer, at 10,500. Almost 14,000 more jobs in Arizona could be lost from budget cuts to other government agencies, such as the Department of Agriculture, that have operations in the state, the report said. Both figures include direct and indirect job losses. Direct job losses would come from federal agencies, military bases and prime federal contractors in Arizona that would lose employees or contracts under the cuts. Indirect job losses would come from the suppliers and vendors that do business with those agencies, bases and prime contractors, and would see that business go away. “It could be the security guard at the office building rented by GSA (General Services Administration) that is no longer needed because the building is no longer fully leased,” Fuller said in an email. The cuts were mandated by the Budget Control Act of 2011. That law created a bi-

partisan “super committee” that was supposed to come up with a long-term solution to the nation’s budget deficit and debt. In an attempt to push the committee to a deal, the law called for harsh automatic budget cuts to take effect on Jan. 2, 2013, if no deal was reached. At least half the cuts would come from defense and half would come from domestic programs. The super committee disbanded nearly a year ago, admitting in a joint statement that it could not reach an agreement on the budget. The stalemate set in motion the automatic cuts, also called budget sequestration. If Congress doesn’t reach some kind of budget compromise by the end of the year, the sequestration cuts to both defense and non-defense will kick in. But the threat of cuts is already having an effect. “People don’t take risks … during times of uncertainty,” said Fuller. Uncertainty reduces investment, he said, and innovation stops as a result.

InsideTucsonBusiness.com

JULY 20, 2012

NEWS

Drug maker Sanofi offers glimpse into world of pharma research

This Week’s

Good News UA Med Center ranks The University of Arizona Medical Center – University Campus, 1501 N. Campbell Ave., this week was ranked among the nation’s best hospitals, especially for its care of older adults, in U.S. News & World Report’s 2012-2013 ranking of best hospitals. Out of 108 hospitals in Arizona, the Tucson hospital ranked third, behind Banner Good Samaritan Medical Center and Mayor Clinic, both in Phoenix. University of Arizona Medical Center was ranked No. 33 out of 5,000 hospitals nationwide in geriatrics.

By Patrick McNamara Inside Tucson Business

The Tucson

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

Appeal Walmart ruling? Now that the El Encanto Neighborhood Association has failed three times in its efforts to keep Walmart from opening a store in El Con Mall, the question arises: Will the association muster the financial resources for a fourth try? According to talk on the street, it appears the association has already spent about $100,000 in legal fees to challenge El Con’s development agreement — an agreement it signed off on in 2000.

School bells ring

Patrick McNamara

A top pharmaceutical company with a research facility in Oro Valley opened its doors to visitors this week for a peek into the inner workings of the drug research process. Sanofi’s Tucson Research Center, 2090 E. Innovation Park Drive, stands at the leading edge of the international company’s research and development process. Here, Sanofi chemists produce molecules and run them through a gauntlet of experiments, the ultimate goal of which is to create new drug therapies. “Sanofi has been able to diversify from a drug company to a diversified healthcare company,” said Marc Bonnefoi, head of Sanofi’s North American Research and Development Hub. Sanofi, headquartered in Paris, has developed numerous pharmaceutical products, including the drugs in products like Ambien, Plavix and Allegra. Through acquisitions, the company also owns many over-the-counter products like IcyHot, Gold Bond and Selsun Blue. Bonnefoi said the company currently has at least 61 drugs in its research pipeline with 17 new products likely ready for market by 2015. This year, the company plans to release four new drug products. Chemists and researchers at the Oro Valley site work at the Genesis of the drug discovery process. But to move from the laboratory to the market place the process could take as long as 12 years and cost $1 billion. “Drug discovery isn’t rocket science, it’s actually a lot harder,” said Kenneth Wertman, vice president and site research director for the Sanofi Tucson Research Center. In addition to the complexities involved in drug research, the process is high risk as well. As many as 50 percent of products don’t provide a return on investment, Wertman said. Added to that, a majority of drugresearch projects fail. Sanofi has been able to maximize its odds through volume, using a process that allows researchers to test more than 2 million molecules per month. The process, know as combinatorial chemistry, was innovated by a University of Arizona spinoff company called Selectide Corporation. That company, which Wertman was an early part of, was later purchased by a larger firm that Sanofi eventually bought. Combinatorial chemistry allows Sanofi researchers to rapidly and reliably produce large numbers of molecules, which it uses for drug development.

Sanofi researcher Martha Ackerman-Berrier demonstrates the testing of samples as part of the drug-research process at the firm’s Oro Valley facility.

For example, among the drug therapies the company is currently working on include drugs to treat cystic fibrosis, muscular dystrophy, multiple sclerosis and hearing loss. In Oro Valley, the company employs more 70 full-time workers. It moved into the innovation Park location in 2009 from a smaller site off Oracle, also in Oro Valley. It’s 10,000 square foot facility here was built to LEED Gold standards, a low energy and environmentally friendly rating set by the U.S. Green Building Council. Worldwide, Sanofi has more than 100,000 employees, with research hubs in North

America, Europe and Asia. Its research and development budget in 2010 topped nearly $6 billion. Sales in 2010 were more than $37 billion. In 2011 the company changed its name from Sanofi-Aventis to the simplified Sanofi. According to reports at the time, the second part of the name was dropped to facilitate pronunciation of the company name in emerging markets such as China.

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

It gets earlier each year, as those in the Vail Unified School District know. It was back to school this week, with high schools starting today (July 20) but most other schools in the district started Monday. Vail uses a modified year-round calendar but other districts in the region aren’t going to be far behind starting up again. Students in Tucson Unified go back Aug. 2; Marana, Sahuarita and Sunnyside start Aug. 6; Indian Oasis-Baboquivari on Aug. 7; Tanque Verde on Aug. 8; Altar Valley, Amphitheater, Catalina Foothills and Flowing Wells on Aug. 9; Ajo on Aug. 13; and the Continental Elementary School District in Green Valley waiting until Aug. 21.

6 JULY 20, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES Chapter 11 Business reorganization Luis Roberto Campos, 3212 W. Flowering Cactus Court. Principal: Luis R. Campos, debtor. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Not filed. Case No. 12-15787 filed July 16. Law firm: Pro se

FORECLOSURE NOTICES Cristiani LLC 208 E. Prince Road 85705 Tax parcel: 106-03-007F Original Principal: $1,194,900.00 Beneﬁciary: R. Salvadore, trustee, RS Revocable Living Trust, Elk Grove, Calif. Auction time and date: 11:30 a.m. Oct. 2, 2012 Trustee: Statewide Foreclosure Services Inc., 2741 W. Southern Ave., Suite 2, Tempe

LIENS Federal tax liens Ventana Timber Resources LP LLC and Javier Gonzales, 33 N. Stone Ave., Suite 1410. Amount owed: $1,354.80. All RV Service Center Inc., 537 W. Grant Road. Amount owed: $10,676.59. DAR Tile LLC, 4300 W. Bilby Road. Amounts owed: $2,586.93 and $33,719.08. Cutting Edge Tree Service and Landscaping LLC and Amy Drennan, 3048 W. Curtis Road. Amount owed: $19,695.06. L&K Rooﬁng, 4812 S. 12th Ave. Amount owed: $8,233.79. Pryde Business Systems LLC and Lyle S. Wood, PO Box 31888, 85751. Amounts owed: $41,728.09 and $22,322.79. W Boutique LLC and Sydney Duncan, 4340 N. Campbell Ave., Suite 185. Amount owed: $3,426.96. Diamondback Movers and Curtis Byrd, 3766 E. 34th St. 106. Amount owed: $13,527.30. Arizona Hydro-Jetting & Plumbing Inc., 7351 E. Beverly Drive. Amount owed: $33,618.60. Strategic Space Development Inc., 9121 E. Tanque Verde Road, Suite 105. Amount owed: $26,517.88. D.J. Williamson Enterprises Inc., 12441 E. Camino Del Garanon. Amount owed: $321,878.40. Ground Effects Landscaping Inc., 107 W. Sahuaro St. Amount owed: $14,720.47. Reﬂections at the Buttes Limited LLC, 9800 N. Oracle Road, Oro Valley. Amount owed: $15,497.03. Loren Yunk CPA PC, 2016 E. Broadway. Amount owed: $3,182.94. Elements Salon and Robert & Andrea Allen LLC, 1951 W. Grant Road, Suite 110. Amount owed: $1,177.05.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Blue Star Electric Inc. Arizona, 3100 E. 45th St. Amount owed: $8,434.59. The Keys LLC, 445 W. Wetmore Road. Amount owed: $44,886.54.

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

Continental Flooring Co. against QIP Tucson Office I LLC. Amount owed: $13,750.30. JB Ventures Inc./JB Steel against QIP Tucson Office I LLC and US Bank. Amount owed: $163,232.40. Berge Electric Corp. against Quality Investment Properties. Amount owed: $364,352.30. Otis Elevator Co. against QIP Tucson Office I LLC, QLD WACC LLC, and WLD Investment Properties. Amount owed: $47,233.00. Charles Court Construction Inc. against QIP Tucson Office I LLC. Amount owed: $20,185.80.

Release of federal liens Select Development & Construction, 5401 S. Arcadia Ave.

Tron Mechanical Inc., 213 W. Flores St. El Camino Paving Inc., 7751 W. Velo Road Congregation Ner Tamid, 3661 N. Campbell Ave. 223 Skin Care By Design LLC and Michael W. Bailey, 8921 N. Shadow Rock Drive, Marana La Fresita Mexican Food St. Mary’s and Belen Garcia, 1450 W. St. Mary’s Road Sierra Mining & Crushing LLC and Shane R. Madsen, PO Box 22110, 85734 Nuccio & Shirly PC, 1830 E. Broadway 1240 363 MVC Masonry and Mario Valenzuela, 8160 S. Marstellar Road Verbatim Reporting and Transcription and Christine F. Clayton, 11115 N. La Canada Drive, Suite 275, Oro Valley J. C. Van Doren MD PLLC, 2561 E. Fort Lowell Road, Suite 2 Old Pueblo Industrial Supplies and Justin C. Young, 2351 N. Alvernon Way, Suite 202 Damon Rodriguez Professional Corporation, 120 S. Houghton Road 138-209 Robinson & Rylander PC, 4340 N. Campbell Ave., Suite 266 Lam Tech LLC and John R. Scott, PO Box 78570, 85703 We Go Welding and Ulius S. Aycock, 1842 W. Grant Road, Suite 105 Carniceria La Noria and Sanav & Associates LLC, 704 E. Prince Road Claire’s Cafe LLC and Claire R. Johnson, 16140 N. Oracle Road, Catalina Irma D. Gonzalez LLC, 2732 W. Monte Vista Place CJS Services and Miltom James, 9661 E. Moonbeam Drive J.C. Construction Inc., 4388 N. Windridge Loop Watson Refrigeration Co. Inc., 4717 S. Irving Ave. Law Ofﬁces James J. D’Antonio PC, 751 N. Country Club Road Strategic Space Development Inc., 9121 E. Tanque Verde Road, Suite 105 Phunkyball 17 LLC, PO Box 13284, 85732 Casa De Campos LLC and Roberto Celis Campos, 4049 S. Queen Palm Drive Mary’s Residential Home Care Inc., 1500 N. Yavapai St. Shaw’s Machine & Fabrication Inc., 11485 W. Chapel Drive, Marana Family Air LLC and James Beard, 2021 E. 12th St. Casa Molina Inc., 6225 E. Speedway Territorial Sign Co., 3400 E. Alvord Road Cimaco Floor Service Inc., 3812 E. 37th St. Caring Hands Corner Luxury Adult Care Home Inc., 4644 E. San Carlos Place South Little Mexico Steakhouse Inc., 2851 W. Valencia Road Taylor-Heddings Arizona Pizza Co. Inc., 4955 N. Sabino Canyon Road

Release of state liens Rojo Ornamental Iron LLC, 2254 W. Virginia Place Crown Diversiﬁed Inc. doing business as Starbrite Cleaners and Carolyn’s Kids, 847 N. Stone Ave. Papagayo Sunrise Inc., 4717 E. Sunrise Drive Healthy Souls LLC, 5870 E. Broadway Jade Concrete Inc., 512 E. 28th St., South Tucson A&B Glass & Mirror and Arizona’s Best Glaziers Inc., PO Box 50305, 85703 Southwest Trends Inc., 3500 E. Sunrise Drive Rivas Custom Builders LLC, 9960 E. Placita De Las Palmeritas J.E. Monahan Enterprises Inc., 500 N. Fourth Ave., Suite 11 BJP of Tucson Inc., 940 W. Grant Road Termon Investments Inc., 940 W. Grant Road Martinez Funeral Chapels LLC, 2580 S. Sixth Ave., South Tucson Second Amendement Sports Inc., 5146 E. Pima St. Saguaro Ranch Development Corp., PO Box 70207, 85737 Econo Lube & Tune and Mehrana & Melody LLC, 2255 W. Orange Grove Road #4203 Johnny’s Cars & Trucks and Maria Del D. Valenzuela, 5245 S. 12th Ave. Law Ofﬁces Susan M. Schauf Ltd., 6221 N. Placita De Luis Sonoran Builders Ltd., 3266 E. Grant Road Marzo Construction Inc., 1955 W. Grant Road, Suite 110 Bluestone Design & Construction LLC, 2030 E. Broadway, Suite 205 Firelite Lounge & Cafe, 2413 W. Wetmore Road

Rothschild expands on vision for Tucson’s future By Patrick McNamara Inside Tucson Business Following up on his “180 Day” plan, Tucson Mayor Jonathan Rothschild unveiled a vision for his next 360 days in office. “The difference between this and 180 is, I believe, it’s much more ambitious,” Rothschild said July 13. The 360 Plan, as the mayor has called it, continues on the themes of the previous plan, including strengthening the local economy, community ties, better city services and the natural environment. “To have a strong community, you have to have a strong economy,” Rothschild said. To that end, the mayor said the city has to encourage entrepreneurship, recruit and retain employers and support increased railway construction in Southern Arizona. “I think the money is in rail,” Rothschild said. The mayor said he would support the city seeking federal funding to study the plausibility of new passenger lines connecting Tucson with the Phoenix area. Federal funding also could be available to pay for construction of a rail line, particularly a high-speed line connecting Tucson and Phoenix. That, according to Rothschild, likely would spur considerable private investment in development along the route. Renewed interest in connecting Southern Arizona by rail to a deep-water port Guaymas, Sonora, could in turn strengthen the region’s position as a logistics hub. He also said the city could look to eventually connect the modern streetcar, Sun Link, to Tucson International Airport, similar to what Salt Lake City did with its rail system. More annexations into the city also factor into Rothschild’s plan. He said the city needs to look toward expanding to help capture more state-shared revenue funding. The state government redistributes revenues collected from income, sales and vehicle-license taxes to local governments using a per capita population formula that benefits incorporated municipalities over unincorporated areas. Tucson officials already have begun work on a map, at the mayor’s request, that would identify regions of possible city annexation efforts. Rothschild said he wanted to target regions for annexation that would hold the most revenue possible for the city, whether they are commercial or residential areas. A more strategic approach to annexations would make for a departure from

how Tucson has grown in the past. “It really has been on a project-by-project basis,” Rothschild said, explaining that in the past property owners have generally contacted the city with proposals for annexations. Downtown redevelopment was another area the mayor said he wants to see renewed city focus.

The mayor said he would support the city seeking federal funding to study the plausibility of new passenger lines connecting Tucson with the Phoenix area. “I do not have a simple answer for the Tucson Convention Center and arena,” Rothschild said, adding that he sees the need for a combination of public and private investments. Working on that front, Rothschild said the city would likely seek to open lines of communication with downtown property owners Humberto Lopez and Allan Norville. Lopez owns the now-closed Hotel Arizona, 181 W. Broadway, and has in the past made overtures to the city to enter publicprivate partnerships to renovate the aged property. Norville owns a strategic trio of parcels between the Tucson Convention Center and city-owned properties that face Interstate 10. As the city’s representative, Rothschild also intends to re-engage the Rio Nuevo Multipurpose Facilities District board, with whom the city leaders have had strained relations over the past year or more. Other markers the mayor laid out include expanding the economic districts around the airport, Tucson’s Inland Port and the University of Arizona Tech Park. The plan also calls for looking further south to the international border, to strengthen the region’s ties to Mexico. “This plan sets out ambitious goals,” Rothschild said. “It’s our choice as a community how to get this done.”

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

InsideTucsonBusiness.com

JULY 20, 2012

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INSIDE TUCSON BUSINESS

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JULY 20, 2012

PROFILE

Combining the best of European and American models propels BASIS schools By Christy Krueger Inside Tucson Business Despite negative talk about education in Arizona, Tucson currently lays claim to having the top-ranked public high school in the country. In May, the Washington Post named BASIS Tucson the No. 1 most challenging high school in the United States. That same month, Newsweek followed up with a No. 5 ranking on its list of America’s Best High Schools. And, in April, U.S. News & World Report ranked it No. 6 among its gold medal best high schools. This is not the first time BASIS Tucson has been nationally recognized for its achievements; it has received top-20 rankings every year since 2008. BASIS Educational Group was founded in 1998 by Michael and Olga Block and has since grown to include eight Arizona schools, three of which are in the Tucson region, plus one soon to open in Washington, D.C. The flagship BASIS Tucson, 3434 E. Broadway; BASIS Oro Valley, 11155 N. Oracle Road, which opened in 2010; and BASIS Tucson North, 5740 E. River Road, which is due to open next month. According to Arwynn Gilroy, communications director for the group, Olga Block moved to Arizona from the Czech Republic with her middle-school-aged daughter and placed her in a high achieving Scottsdale school. But after a short time, Block realized the curriculum was not up to the standards she was used to in her home country. On the other hand, she was pleased to see such open communication between students and teachers, and she thought a blending of the two approaches would be ideal. Michael Block agreed. As a University of Arizona professor, he found that U.S. students were less prepared for college than their foreign peers. Together, husband and wife opened their first BASIS charter school, combining the best aspects of American and European educational systems. (Originally, BASIS stood for Beginning Academic Success In School, but the organization has dropped that and now goes only by its acronym.) “They spent the first several years perfecting that model with the Tucson school,” said Gilroy. “They wanted to prove this model would be acceptable anywhere it goes.” Olga and Michael opened their next school in Scottsdale in 2003, and this year it received a No. 3 best schools ranking from Newsweek and a No. 5 ranking from the Washington Post. Craig Barrett, former chairman and CEO of Intel and chairman of the board for BASIS Group, pushed for expansion. He wanted to have a school everywhere in the country, Gilroy said. The rigorous curriculum upon which BASIS was founded includes coursework

What is a charter school?

BASIS Oro Valley takes an interactive approach in seventh grade algebra class.

and testing at the Advanced Placement (AP) level and in preparation for the University of Cambridge International Examinations. This educational design helps make the schools among the best across the nation. Students are required to take six AP exams, starting in ninth grade. “The students do well because we developed a robust system to measure them. They’re held accountable for the material. Tests are given and graded by outside experts,” Gilroy said. “We bring the curriculum down to the middle school level to ensure they’re ready to take upper level course work.” Cambridge is an exam given to 14-to-16year-olds around the world, she explained. “Our students take it at about 14 years old. It’s another external indicator.” Gilroy believes the teaching staff is another reason the students perform at such a high level. Teachers in charter schools aren’t required to have education certificates, “so we can choose from a larger group,” specifically experts in their fields. “More than half have master’s degrees in the discipline they teach and 10 percent have a Ph.D.” It isn’t all work and no play at BASIS. Students are offered a number of electives, extracurricular activities and sports that are specific to each campus. Gilroy listed lacrosse and fencing as two favorites at BASIS Tucson. Sean Aiken, head of school at BASIS Oro Valley, makes sure his students have plenty of unique choices available to them. “We’re working with UA in the telemedi-

Inside Tucson Business Created by the state Legislature in 1994, charter schools are state funded public schools. Because they are public schools they are funded with taxpayer money they cannot charge tuition and enrollment is open to all Arizona students under open enrollment rules. According to the Arizona Department of Education’s website, there are 116 charter schools in Pima County. Charter schools are required to serve all students, including those with special needs. Depending on a school’s mission, some schools may not be appropriate for all students. Additionally, charter schools may cap class size and the number of applicants. If the number of applicants exceeds the spaces available, charter schools must provide an equitable system such as a lottery for enrolling students. As with all public schools, the Arizona Department of Education requires students in charter schools to participate in the state’s nationally standardized achievement testing program and AIMS (Arizona Instrument to Measure Standards) tests. The state issues report cards for all public schools, including charter schools. Information about those report cards can be found at www.azed.gov/research-evaluation/az-learns/.

BIZ FACTS

BASIS Schools www.BASISschools.org/ • BASIS Tucson Upper School, 3434 E. Broadway (520) 326-3444 • BASIS Tucson Lower School, 3825 E. Second St. (520) 326-6367 • BASIS Oro Valley, 11155 N. Oracle Road (520) 308-5220 • BASIS Tucson North, 5740 E. River Road (520) 326-3444 • Campuses also in Chandler, Flagstaff, Peoria, Phoenix and Scottsdale cine program,” he said. The class, called Nature of Disease, is offered to eighth and ninth graders and is taught in University of Arizona labs. “It’s equal to the first year of med school,” he noted. Chess, athletics, science fair and grammar bowl are other options currently available at Oro Valley. Extracurricular activities, said Aiken, “are driven by student interest. We find opportunities and see who is interested.” Arts are the same, he said. “We offer every program we generate interest in. We have band, ensembles, choir, and drama. We emphasize interpretation of the arts. It’s a vital part of our program. The creative outlets they experience in arts are just as important as technical courses.” His school, which is near capacity this

fall with 640 students in grades 5-12, was the first to be housed in a facility designed and built to be a BASIS school. Tucson North is another campus being built from the ground up, created in response to the success and study-body growth of the original BASIS Tucson. The new school will open this fall with grades 5-12, receiving its upper-grade students from the mid-town campus. That leaves the once overflowing BASIS Tucson with a more manageable enrollment of 375 students in grades 5-7. Opening new schools and moving students around can be complicated considering the BASIS curriculum is designed to start students in fifth grade and retain them through graduation. Students have never before been blended like they will be this year at BASIS Tucson North, noted Head of School Julia Toews. “It’s the first time we’ve had a combination of experienced BASIS kids with brand new kids,” Toews said. “But the older kids enjoy peer tutoring. This will create a great atmosphere.” Approximately 820 students out of a capacity of 850 are registered at Tucson North for this fall, she added. Since BASIS schools are tuition-free and admit students by open enrollment, they can fill quickly. “If there are more than we can accommodate,” Gilroy explained, “we use a lottery. All charter schools in the state operate this way. We give preference, as per Arizona law, to children of employees and siblings in the school.”

12 JULY 20, 2012

INSIDE TUCSON BUSINESS

SALES SALES JUDO

Training a sales team - then paying them to quit When it comes to designing training programs for sales forces, Softchoice offers some unique notions that work for it. To begin with the Toronto-based reseller of software and computer equipment, looks for candidates with little or no prior sales experience or technical knowledge. Instead, according Softchoice corporate recruiter Sakshi Khanna, the company visits college campuses to interview graduating seniors with marketing and liberal arts backgrounds. They look for energy, aptitude, attitude, intelligence and no bad sales habits. As it turns out, the University of Arizona’s Eller College of Management is an ideal hunting ground for them. It offers an excellent 18 unit marketing minor program during summers to non-Eller UA students. This summer’s 45 participants have majors as diverse as psychology, studio and media arts, history, journalism and creative writing, communications, mathematics, geosciences, music, economics, sociology, French and Spanish. The program is actually an intense “boot camp,” containing six courses delivered at a dead sprint over two five-week sessions: Marketing concepts and tools, Marketing information and analysis, Marketing and human behavior, Creative advertising, Marketing planning and execution, Marketing communication tools, and Personal selling, which I taught during June. Graduates of Eller’s marketing minor are just the sort of candidates that Khanna and SoftChoice hope to recruit for the company’s “Territory Sales Representative Destination” program. These representa-

tives are a combination of inside and outside sales representatives. Following completion of a six-week training in Seattle, they remain there, SAM WILLIAMS targeting organizations with 150 or more personal computers in a specific geography. Representatives recruited from Tucson will be given lists of prospects in Pima and Maricopa counties. While there will be a few opportunities to participate in direct sales calls, most of their approaches and sales will be made by phone during the first two years. According to development coach Amy Hoidas, each territory sales representative is expected to make at least 40 dials each day and must meet monthly gross profit targets. After two to three years on the phones, the representatives transition into outside sales roles and relocate from Seattle to Phoenix. Later this summer, Khanna will send a sales recruiter to Tucson to meet graduates of the Eller marketing minor program. Those who make the first cut will take a couple of computer assessments that describe their personalities and basic skill levels. Those who make this second cut will have reference and background checks run on them. Assuming they aren’t disqualified because of their Facebook pages or “priors,” they’ll receive an offer of employment that contains a competitive base salary plus commissions and bonuses. Not bad at all

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for recent grads with BA degrees. After receiving a modest relocation stipend, they’ll move up to Seattle, and begin the training. Known as Pegasus, it’s a blended program delivered online via laptops and live coaches, such Hoidas. A learning management system (LMS) keeps track of each student’s progress and grades. Since the training is self paced and not tied to a classroom or an instructor, new hires can start their Pegasus training whenever they arrive. Training is continuous, and between 45 and 60 territory sales representatives complete the program each year. As you would expect, during the first week of training students are familiarized with Pegasus and other Softchoice systems. They then transition into a week and a half of product knowledge and technology training. In the latter half of the third week, students begin to make their first cold calls with a “territory sales representative buddy” who listens in on a second phone headset. Of course, there are role playing exercises that expose students to some of the more standard conversations they can expect to have with prospects. In the fifth week, students are exposed to the high margin professional services provided by Softchoice. They are also trained in prospecting: pre-call planning, making cold calls, dealing with objections and closing. They are also shown how to manage their sales pipelines and sales activity using Microsoft’s CRM (customer relationship management) suite. In their sixth and final week, the trainees are shown how to build sales forecasts. They also practice more advanced cold call skills and take the Pegasus final exam. At this point, you’re probably thinking this is a good solid program, albeit mostly predictable. Now comes the surprise ending: Scott Harper, director of the territory sales division, gives each territory sales representative a paid offer to resign. In a one-on-one meeting Scott asks each student if she or he is willing to remain with Softchoice for two full years making cold calls. If not, he’ll give each a severance bonus on the spot. So far, not one of his grads has taken him up on the offer, and the turnover rate to date has been zero. Although it’s somewhat unique, Softchoice isn’t alone in doing this. The idea was pioneered by Tony Hsieh, CEO of the billion dollar shoe e-tailer Zappos, which also has an extensive four-week onboarding training program. One week into the training, Zappos makes trainees “the offer,” telling prospects, “If you quit today, we’ll pay you for the amount of time you have worked, plus a $3,000 bonus.”

Hsieh says about 2 to 3 percent take the offer. In a 2008 article in Bloomberg Businessweek, Keith McFarland writes, “Zappos is acting on the understanding that the character of a company can be the most powerful yet most difficult competitive advantage to develop and maintain. ‘The Offer’ suggests a rare company that believes if you really want to amaze your customers, a great way to start is to amaze your employees and inspire them to amaze everyone who comes in contact with your enterprise.” He goes on to say the idea makes financial sense for the company. “Most CEOs agree turnover costs tens of thousands of dollars in recruitment, training, and lost productivity. So identifying the misfits early — at a cost of just one-week’s salary and $2,000 — could just be the best deal a company can make. What would you pay to get a full-time, weeklong look at your recruits’ character, work habits, and social skills prior to making a commitment to them?” Most important, McFarland writes, “Zappos is forcing itself to do a good job filtering people on the front end, and creating a place where people want to work.” If you are a smaller organization, clearly you won’t be able to afford to develop a sales training program on these scales. But, good solid programs can be developed using elements that don’t cost all that much. For example: • Validated profiling instruments for the selection of your new hires cost less than $25 a copy. • Owners of smaller companies can create and print their own paper training manuals for product knowledge and sales process flows for less than $1,000. • Good sales skills training is available for less than $100 by having you and all of your sales executives read three books: “Spin Selling,” by Neil Rackham; “Selling to VITO (The Very Important Top Officer),” by Anthony Parinello; and “Getting to Closed,” by Stephan Schiffman. • Sales reinforcement training, for less than $75 per person per month, is available through “iDealResponse” and other e-providers.

Contact Sam Williams, president of the business-to-business sales consultancy firm New View Group, at swilliams@newviewgroup.net or (520) 390-0568. Williams is also an adjunct lecturer of sales at the University of Arizona Eller School of Management. Sales Judo appears the first and third weeks of each month in Inside Tucson Business.

InsideTucsonBusiness.com

JULY 20, 2012

MEDIA

Are you ready for 5,536 hours of the Summer Olympics? By David Hatfield Inside Tucson Business One week from today, the Summer Olympic games are scheduled to officially open in London. For desert-dwelling Tucsonans, the amount of available video coverage over the ensuing 17 days promises to be unlike anything we’ve seen before of an Olympics. On one platform or another, NBC says every minute of every competition will be available live. For starters, NBC, which has held the U.S. telecast rights to every Summer Olympics since 1988 — and holds future rights out to 2020 — is no longer preoccupied with saving video of marquee events for exclusive first-showings on its highly produced primetime telecasts. There will be plenty of coverage on NBC — 272½ hours, starting with the Opening Ceremonies at 6:30 p.m. July 27 on KVOA 4. But now that Comcast is its majority, there will be another 5,263 hours shown on the company’s other platforms, including about 3,500 hours that will be live-streamed on NBCOlympics.com. To watch online streams, viewers will be required to register — something you might want to do before the Olympics start. As part of that process, viewers have to verify they are subscribers to a cable or satellite service. There are also mobile apps for iPhones, iPads and most Android smartphones. Not all of these videos will be the highlyproduced versions American viewers have come to expect. Some will use the Olympics’ world feed and others won’t be much more than a camera trained at an event with some added graphics.

The plethora of alternative coverages isn’t seeming to have an effect on advertising sales. Bill Shaw, president and general manager of KVOA, says local sales are well ahead of where they were four years ago and commensurate with the kinds of percentage increases the network and other markets are seeing. “Most of the commercial time is sold out,” Shaw said, then quickly adding, “but if an advertiser is interested we’re still open for business.” Trade reports say NBC is expecting advertising sales for the London games will reach $1 billion, a 29 percent increase from the $850 million the network sold four years ago for the games from Beijing. This week, Dave Lougee, president of Gannett Broadcasting, told Wall Street analysts that sales at his company’s NBC affiliates (which include KPNX Phoenix) have been so strong they could report quarterly revenue increases of as much as 30 percent. On the content side, KVOA sports director Ryan Recker, says he’s intrigued by some of the local athletes, such as swimmer Caitlin Leverenz, a Sahuaro High School grad who swims for the University of California; and distance runner Bernard Lagat, who was born in Kenya and now lives and trains in Tucson. And here’s a quick rundown of where you’ll find Olympics coverage on TV: • NBC (KVOA 4) will continue to have the marquee highly-produced coverage including prime-time programs hosted by Bob Costas. • NBC Sports Network (formerly Versus) will focus on U.S. team sports for 292½ hours of coverage, starting two days before

the Opening Ceremonies, at 8:30 a.m. Wednesday (July 25) when Team USA plays France in soccer. • MSNBC will show 155½ hours of a variety of events, including badminton and wrestling, from 6 a.m.-3 p.m. most weekdays. • CNBC will concentrate on boxing, both men’s and women’s, for its 73 hours of coverage, which will mostly air from 2-5 p.m. daily. • Bravo will feature live coverage of tennis for its 56 hours of programming July 28 through Aug. 3, most of it will air from 7 a.m.-3 p.m. • Telemundo (KHRR 40) will show 173 hours of Olympics coverage in Spanish focusing on soccer and Hispanic athletes. • Two specialty cable channels; one solely to basketball and the other to soccer. It’s major departure from the past for NBC and one the network admits will probably not be profitable, considering the $2 billion rights fee it is paying plus the high cost of doing business in London.

Not a stunt on KWFM No, that wasn’t a stunt — at least not entirely — they were playing this week when KWFM 1330-AM dropped most of its talk programs for about 40 hours, replacing them with “hot classic hits.” Operations Manager Alan Michaels said the musical interlude was prompted by a major malfunction of receiver equipment provided by distributors of the syndicated talk shows. Once new equipment was shipped in and installed, the talk programming resumed. Except for the Dr. Joy Browne show, the switch in format lasted from mid-morn-

ing Monday until 3 p.m. Tuesday.

Names in news John Weaver joined Arizona Public Media’s NPR outlet KUAZ 89.1-FM/1550-AM this week as morning host and newscaster. He came from Minneapolis where he has been running a voice talent and production business. From 2001 to 2008, Weaver worked for Minnesota Public Radio and before that worked seven years in production capacities at TV stations in the Twin Cities. He’s a graduate of the University of Montana and started his career at a radio station in Salt Lake City. Weaver fills the vacancy created when David Close retired in January. On the “sales” side of Arizona Public Media, Enrique Aldana has joined the staff as associate director of development focusing on major gifts. A University of Arizona graduate, Aldana moved over from Tucson Newspapers where he had been an advertising sales manager since 2004. Alex Miranda, one of the original hosts of “The Morning Blend” on KGUN 9, is the host of a new CBS network relationship reality show called “3,” which premieres at 9 p.m. Thursday (July 26) on KOLD 13 in Tucson after which it is scheduled to air weekly at 8 p.m. Sundays. Adapted from a series in Israel called “Shalosh,” the premise of “3” is that three women try to find true love and help each other through the decision-making process choosing from almost 100 men. Hosts Miranda and Ann Lauricello launched KGUN’s “The Morning Blend” in April 2010. Miranda left the show in March.

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

CALENDAR SPECIAL EVENTS

Ins and Lunch & Learn: Ins and Outs of Insurance for Technology Companies Wednesday (July 25) 11:30 a.m. to 1 p.m. Crest Insurance 5285 E. Williams Circle, Ste. 4500 Contact: Justin Williams jwilliams@aztechcouncil.org (520) 829-3440 Cost: $15 www.aztechcouncil. org/tucsonevents Nike, The Brand Experience Thursday (Aug. 23) 7 to 10 a.m. The Westin La Paloma Resort & Spa 3800 E. Sunrise Drive Join the Tucson Metro Chamber and Pima Federal Credit Union

in welcoming Nike executive, Loren Hoppes to hear about the Nike brand identity. Contact: Arlene achiovet@ tucsonchamber.org 792-2250 x135 Cost: $45/members; $65/non/members www.tucsonchamber.org REGULAR MEETINGS

Marana Chamber of Commerce Mixer Fourth Tuesday of each month 5:30 to 7:30 p.m. Locations vary Information: www. maranachamber.com Metropolitan Tucson Convention & Visitors Bureau First Tuesday Monthly Luncheon 11:45 a.m. to 1 p.m. Arizona Inn

2200 E. Elm St. RSVP Required: (520) 7702131 or www.visitTucson. org/PartnerRSVP Cost: $25 MTCVB Partners; $30 Others NAWBO Monthly Mixer Third Thursdays 4 to 7 p.m. Locations vary Info: info@nawbotucson.org NAWBO Monthly Breakfast Fourth Tuesdays, 8 to 9:30 a.m. Locations vary Info: Morella Bierwag, (520) 326-2926 or info@ nawbotucson.org NAWBO Monthly Luncheon Second Tuesdays 10:30 a.m. to 1:30 p.m. Locations vary Info: Morella Bierwag,

(520) 326-2926 or info@ nawbotucson.org National Association of the Remodeler’s Industry (NARI) Tucson Third Tuesday 5:30 p.m. Varies, call for location Information: (520) 310-3386 rebecca@ nariofsouthernarizona.com Cost: Free to members and ﬁrst timers Networks @ Work First Wednesdays 11:30 a.m. to 12:30 p.m. Sullivan’s Steak House 1785 E. River Road Contact: Ricardo Carrasco at (520) 977-8812 or Ricardo@gsﬂoans.com Cost: Meal from menu ($12-$25)

Networking Club in Northwest Tucson Ali Lassen’s leads club First Wednesday noon to 1 p.m. Sullivan’s Steak House 1785 E. River Road RSVP: Johnna Fox (866) 551-3720 Networking Entrepreneurs of Tucson Networking breakfast First and third Wednesday 7 to 8:30 a.m. Hometown Buffet 5101 N. Oracle Road Information: (520) 240-4552 Northern Pima County Chamber of Commerce Monthly Membership Breakfast Fourth Thursday of the month

7 to 8:30 a.m. El Charro Café 7725 N. Oracle Road http://the-chamber.com Northwest Power Group (referral group) Mondays 7:30 a.m. to 8:30 a.m. Hilton El Conquistador Country Club, 10555 N. La Cañada Drive RSVP: (520) 229-8283 Cost: $50 one-time fee (ﬁrst two visits free) Northwest Power Group Networking business group Every Tuesday 7:15 to 8:30 a.m. Village Inn 6251 N. Oracle Road RSVP: Don at (520) 777-4240 Cost: Breakfast

14 JULY 20, 2012

INSIDE TUCSON BUSINESS

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Imagine a Certified Public Accountant (CPA), a lawyer and an orthopedic surgeon each taking the helm as the online marketing director for their multi-member practices. Professionals such as these are likley to have strong opinions. Your mission is to review the three opinions expressed below and decide which opinion belongs to which professional. The quotes might just as easily come from an architect, an engineer and a physical therapist, but your choices are: CPA, lawyer, or surgeon, each representing the practice as a whole. The word “customer” is used to keep the focus on what’s essential for success: customers. Ready? • Professional No. 1: “We don’t want the kind of customer who would choose us because of our website. We just want current customers to be able to find us using the Internet.” • Professional No. 2: “Prospective customers are just going to use our website after they’ve already been referred to us. We’re not going to get any customers just from Internet marketing.” • Professional No. 3: “We want our website and all online marketing to bring us more customers. We know the website’s already helping us get customers, and we want more.” These three opinions about the marketing of professional services online probably represent the most commonly held views on the subject. Sure, some professionals don’t want to even consider what the Internet communicates about them and yet another group is wildly enthusiastic about social media, but let’s set aside those minority positions for today. Professional No. 1, above, no doubt believes in the traditional approach to marketing professional services. Prospects “ask around” before making a phone call, so referrals – from someone the prospect knows – are everything. In its most fundamental form, professionals who use this marketing model “put a shingle out,” concentrate on doing great work, are respectful of the professionals who can and/ or do refer customers to them and their practice flourishes. Success depends on the quality of their work and who they know. Professional No. 2 believes that while all good clients do come from referrals, a website must facilitate and finalize the process, preferably screening out inappropriate prospects. A website’s job is to turn a referred prospect into an appointment with a prospective new customer. Professional No. 3 has a totally different perspective. This professional believes online marketing can cause customers to choose his or her practice above others –

with no external referral. The belief is that customers are empowered to make choices, even about professional services and some customers decide without getting a referral. People go DAVE TEDLOCK online, study up on services offered, evaluate credentials, decide based on factors that include the quality of a website. Research shows, that people are influenced by online ratings, even when the opinions expressed are from complete strangers. Now, in our example, which professional believes the practice gets business directly from Internet marketing? The CPA firm does tax work for both wealthy individuals and for a wide variety of organizations. The law firm serves both individuals and businesses. The orthopedic surgeons do the full range of surgery that orthos do. Are you surprised to learn it’s the surgeon who believes online marketing has a direct impact on the surgeon a patient chooses? True, primary care physicians typically make the referral to a surgeon, but our surgeon explains, “Physicians don’t refer patients to just one surgeon anymore. Patients want a choice, their doctors give them choices, and the patient uses the Internet to help them choose.” What about the firm of CPA’s or lawyers serving wealthy individuals, small businesses and other organizations? Is either firm too busy? No. Too old to understand new opportunities? No. So close to retirement that marketing doesn’t matter? No. Plagued by calls from people who are not good prospect? No. In our example, the CPA doesn’t want clients who come from the Internet and the lawyer who is sure his firm’s lawyers will get checked out, online, but never chosen that way. The key question then, is not about who’s who here, but about you and your organization. What do you believe Internet marketing can do for you? If your answer is, “little or nothing,” you will most likely make the choices required to meet your own expectations. Why not make today your day to expect more from Internet marketing?

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

InsideTucsonBusiness.com

JULY 20, 2012

OUT OF THE OFFICE ARTS & CULTURE

MEALS & ENTERTAINMENT

Take a walk in the gardens, You can dine al fresco now, but its up on Mount Lemmon with your dog, on Tuesdays Unless it’s post-monsoon, there’s probably no chance in Tucson that you’re interested in dining outdoors this time of the year. That is unless you’ve travelled up to Mount Lemmon where the temperatures are 20 to 30 degrees cooler than in the city. If you’re looking for a great spot to unwind and enjoy the great outdoors, the new Sawmill Run restaurant is your ticket. Sawmill Run has attracted a steady following of both mountain residents and weekender visitors. One popular menu item is the corned beef hashwich with pulled corn beef and crispy potatoes topped with a fried egg in a breakfast sandwich. The restaurant is continuing to pay homage to the Mount Lemmon Cafe that previously existed on the same site by featuring pies reminiscent of what that place served. While there’s ample indoor seating, this time of year the place to be at Sawmill Run is on the patio. Good food and significantly cooler temperatures make for a fantastic escape from the desert heat. The restaurant’s summer hours are 11 a.m.-5 p.m. Mondays through Thursdays, 11 a.m.-9 p.m. Fridays, 9 a.m.-9 p.m. Saturdays and 9 a.m.-5 p.m. Sundays. • Sawmill Run, 12976 N. Sabino Canyon Parkway — www.sawmillrun.com — (520) 576-9147

$10 lunch at Pastiche Pastiche Modern Eatery has introduced new $10 lunch specials that include a main dish, a side dish and a soft drink, iced tea or

MICHAEL LURIA

coffee. For the main course, choose from among a Santa Fe chicken sandwich, beer battered fish and chips or a chopped vegetarian salad. Pastiche serves lunch starting at 11:30 a.m. Tues-

days through Fridays. • Pastiche Modern Eatery, 3025 N. Campbell Ave. in Campbell Village — http://pasticheme.com/ — (520)325-3333

$15 dinner for two Through Sept. 3, Choice Greens has a summer special in which two can dine for just $15 from 5-8 p.m. everyday. For that price you can have a custom salad (with four choppings and a protein), or have any classic salad, any sandwich or panini or, if you’re at the Speedway location, macaroni and cheese with two add-ins. Also included are two fountain drinks or two bottled waters. Choice Greens is locally owned and operated. • Choice Greens, 2829 E. Speedway and 4205 N. Campbell Ave. — http://choicegreens.com/ — (520) 319-2467

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

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The Tucson Botanical Gardens, 2150 N. Alvernon Way, is partnering with Hope Animal Shelter this summer in a unique program for folks who want to do something fun and different with their dogs. Every Tuesday through August it’s “Dog Days of Summer at the Gardens” where dogs are welcome to stroll with their owners through the grounds. If you bring a donation of food or treats, you get $1 off your dog’s admission $3 price. Bring three items and the dog gets in free. Regular human admission price is $8, or $4 for children ages 4-12. The gardens ask that participants bring a leash and water for both you and your dog as well as well waste disposal bags. Tucson Botanical Gardens is open daily 8:30 a.m.-4:30 p.m. Hope Animal Shelter, 2011 E. 12th St., bills itself as Tucson’s only no-kill animal shelter for both dogs and cats and they have plenty of both available for adoption.

Art+food trucks I have to mention the Tucson Food Truck Roundups that have been happening around town. Initiated by David Aguirre under the auspices of the collective gallery Dinnerware Artspace, these cultural meet-ups feature food from a variety of vendors, occasional art, culture and entertainment. The next roundup will be from 5-8 p.m. July 26 outside Sportsman’s Warehouse, 3945 W. Costco Drive, Marana. Upcoming food truck roundups

are online at TucsonFoodTruckRoundUp.com.

Art If you’ve never experienced the art of glassblowing, you need to get down to the HERB STRATFORD Philabaum Glass Gallery and Studio, 711 S. Sixth Ave. With artists at work from 11 a.m. to 2:30 p.m. Tuesdays through Fridays, it’s well worth a visit. The gallery is open until 4 p.m., so after you see how it’s made, you can bring a piece of glass art home.

Film This weekend it’s all about Batman. The third, and final film in the series reaches theaters today (July 20) as the “Dark Knight Rises.” With Christian Bale reprising his role as Batman, and Anne Hathaway and Tom Hardy in the mix as well, you don’t have to be a fanboy to be excited about what will happen on the big screen. Expect superhero-sized returns for the studio, as all screenings look likely to be at near capacity.

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

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16 JULY 20, 2012

INSIDE TUCSON BUSINESS

BRIEFS GET ON THE LIST

Next up: Health maintenance organizations, Preferred provider organizations and Indemnity plans 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: • Aug. 3: Health maintenance organiza-

tions, Preferred provider organizations and Indemnity plan providers, Supplemental plans and Childcare providers • Aug. 10: Business and industrial parks, Commercial office, Shopping centers • Aug. 17: Asset management firms, Aeronautical firms • Aug. 24: Highest paid city and county officials, Salary comparison of regional government officials 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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page. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals.

NEW IN TOWN

Shoe Carnival has hourly give-aways on Saturday Shoe Carnival, a shoe retailer based in Evansville, Ind., will hold a grand opening Saturday (July 21) for its first Tucson loca-

tion, at 3497 E. Broadway in El Con. The grand opening starts at 9 a.m. with the first 100 customers receiving a $10 reward card to use toward anything in the store followed by prizes and give-aways all weekend, including hourly drawings on Saturday. At 10 a.m. the prize is free shoes for a year, at 11 a.m. it will be for $1,000 cash from Skechers and then from noon to 5 p.m. there will be hourly drawings for $100 shopping sprees. A signature of Shoe Carnivals are short-term bargains, announced in the store and online, that may last only a few hours. The stores also feature open floor plans and upbeat music. The El Con store’s normal hours will be 9:30 a.m.-9 p.m. Mondays through Thursdays, 9:30 a.m.-9:30 p.m. Fridays and Saturdays and 11 a.m.-7 p.m. Sundays. The phone number is (520) 320-0011 and the website is ww.shoecarnival.com Shoe Carnival is closing in on its 400th location. It also has Arizona stores in Chandler and Goodyear.

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Home-builder Meritage plans stock offering Meritage Homes Corporation plans a public offering of up to 2 million shares of common stock to raise money for working capital and other general corporate purposes. Based in Scottsdale, Meritage is the nation’s ninth-largest homebuilder with about 150 actively selling communities in 15 metropolitan areas, including Tucson. Citigroup, JP Morgan and Deutsche Bank Securities are joint book-running managers for the offering, according to Meritage officials. Bank of America Merrill Lynch is the offering’s co-manager. In Tucson, Meritage Homes, 3275 W. Ina Road, is headed by Desert Region president Jeff Grobstein. Meritage has 10 active communities in the Tucson region.

MINING

Copper miner agrees to restoration project A $6.8 million settlement between Freeport-McMoRan Copper & Gold and the State of Arizona over issues involving damage to waterfowl, sunbirds and other wildlife at the company’s Morenci Mine, has been approved by the U.S. District Court of Arizona. Phoenix Business Journal reported this week the settlement was reached at the end of April. Freeport-McMoRan initially reported the damage in 2000 and 2001, then set up a model to estimate damage done before those years. Restoration sites will likely be set up near the mine in eastern Arizona to restore, rehabilitate or replace damage done to land and wildlife. The primary area of focus is between Springerville and Douglas, according to Carrie Marr, a spokesperson for the U.S. Department of Interior, Fish and Wildlife Service. The process is in its early stages and so far no areas have been selected.

InsideTucsonBusiness.com

JULY 20, 2012

NEXT GENERATION

Tempronics engineers climate-controlled office chair reduce energy consumption by as much as 30 percent. That when used in an office environment with thermostats set at 83 degrees on the summer and 63 degrees in the winter. The Tempronics chair uses the same type of power source as a laptop computer. It consumes about 75 watts compared with 1,800 watts that conventional room air conditioner uses. Today, the company employs seven people full-time in Tucson and another seven in Agua Prieta, Sonora, across the border ffrom Douglas, where the chair is aassembled. BIZ FACTS Makansi said the company aalso has applied for numerous Tempronics patents with the U.S. Patent p 1214 N. Mountain Ave. Office. O www.tempronics.com â&#x20AC;&#x153;In five years,â&#x20AC;? Makansi said, (520) 760-3260 â&#x20AC;&#x153;â&#x20AC;&#x153;where we want to be is when yyou order your office chair, youâ&#x20AC;&#x2122;ll mark off a box that says heating and cooling.â&#x20AC;?

Robert Alcaraz

The Tempronics chair, left. Tarek Makansi, above left, and Mark Evers at the Tempronics office in Tucson.

Tarek came to me with in his business plan was really swinging for the fences,â&#x20AC;? Evers said. Evers and Makansi still have big plans for the company. They see numerous applications for the technology, not just for office furniture. Makansi said the product has a wide variety of applications including electric blankets and auto seats. The company has been in discussions with a major auto seat and commercial airplane manufacturers about purchasing the technology for their products. Makansi also said the technology has applications in the medical and military fields. The use of Tempronics technology in hospital beds could help to eliminate bedsores and other ailments the result of longterm confinement in beds. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking forward to entering that market,â&#x20AC;? Makansi said. In addition, they have already been in talks with the U.S. military about employing Tempronics technology in stretchers. â&#x20AC;&#x153;Once an injured soldier is put on a stretcher, they can spend anywhere from 6 to 36 hours there,â&#x20AC;? Makansi said. The military has expressed an interest in the technology because it could maximize the comfort of injured service members. The products also hold the potential to minimize energy usage. Researchers at the University of California Berkley have studied the technology and have found it could help to Tempronics

By Patrick McNamara Inside Tucson Business Your office chair, itâ&#x20AC;&#x2122;s probably terrible â&#x20AC;&#x201D; hot in the summer, cold in the winter, uncomfortable most of the time. Or maybe you and your coworkers constantly quarrel over the temperature of the workplace. A Tucson company thinks it has the solution to these and other personal comfort issues. â&#x20AC;&#x153;Almost half of all office workers are dissatisfied with the temperature conditions in their offices,â&#x20AC;? said Tarek Makansi, CEO and chief technology officer of Tempronics. The company has capitalized on and improved solid-state thermoelectric technologies that provide heating and cooling. Tempronicsâ&#x20AC;&#x2122; first commercial product is an office chair that adjusts to the userâ&#x20AC;&#x2122;s desired temperature, providing what Makansi called â&#x20AC;&#x153;thermal comfort.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re liberating people from what comes out of the hole in the ceiling,â&#x20AC;? Makansi said referencing the central HVAC systems of most buildings. Tempronics has engineered a chair with an array of semiconductor chips embedded in the seat and back about a centimeter below the surface. â&#x20AC;&#x153;Each one acts as a little air conditioner or heater,â&#x20AC;? Makansi said. Unlike other cooling methods that use liquid under pressure, high energy usage compressors and forced air to lower the temperature of the ambient air, Tempronicsâ&#x20AC;&#x2122; technology uses the thermoelectric effect. In that way, tiny heat pumps conductively pull heat away or towards the user. That allows the chair to either cool or heat according to the userâ&#x20AC;&#x2122;s needs. Makansi, armed with a Ph.D. in electrical engineering from University of California Berkley and more than 20 years with IBM, started the company in 2006 along with friend Mark Evers, who owned and operated a successful media consulting firm. Makansi said the idea went through many permutations before they decided to settle on the office chair. â&#x20AC;&#x153;We were considering putting it in walls (to cool or heat internal spaces),â&#x20AC;? he said. The problem with that, however, was the need to have fans blow air across the surfaces to create the cooling effects. Not only would this cost more in terms of energy consumption, but it still would rely on a similar process of cooling or heating ambient air. Makansi said this too, is inefficient because air doesnâ&#x20AC;&#x2122;t act as a good thermal conductor. â&#x20AC;&#x153;When we started, the technology that

Next Generation is a monthly feature of Inside Tucson Business profiling Southern Arizonans on the cutting edge of developing their ideas. If youâ&#x20AC;&#x2122;ve got an idea or someone you think should be profiled, contact reporter Patrick McNamara at pmcnamara@azbiz. com or (520) 295-4259.

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18 JULY 20, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Seeking a financial advisor? Here are 12 questions to ask The right financial advisor can help you achieve peace of mind through helping you work toward financial security. So how do you go about finding an advisor who’s right for you? The best way is to receive a referral from a trusted friend, colleague or relative. If the financial advisor comes highly recommended, you’ve saved yourself the hit or miss process of looking in the Yellow Pages, a random Google search or attending seminars to find someone who you can click with. Most people love to make referrals when they’re satisfied with the service so go ahead and ask around within your network who they’d recommend. Once you’ve honed in on an advisor, it’s time to do some due diligence. You want to make sure the advisor can meet your specific needs and that you are comfortable working with them. Here are a series of questions you should ask every prospective advisor. Q. How many years have you been in the business? Find out whether the advisor has enough professional financial experience. Seek help from someone who has at least five years of experience, preferably more. Q. Do you have your Series 7 license? This lets you know if the advisor is actually licensed for securities or if he or she is just an annuity or insurance salesperson. Q. What professional credentials do you have? Anyone can hang up a shingle and call themselves a financial advisor. You should look for an advisor who has completed a national education program in financial planning and has been recognized by designations. In addition to passing a standardized exam, these advisors are required to maintain their good-standing status with continuing education courses. Q. What services do you provide to your clients? Make sure the advisor handles what you need whether it’s comprehensive planning, estate planning, investment management, college funding or insurance. Q. How many clients do you have? How many are individual, how many business clients? You should be aware of whether you’re one of 50 or 500 clients. Q. How often do you meet with your clients? Make sure your expectations meet their practice. You want to deal with someone who is proactive versus reactive, and readily available. Q. What is your average account size? The answer will give you a better under-

standing of the advisor’s experience level and ability to handle complicated situations. Ideally, your potential investment should be within range of the advisor’s average account size. For example, if DREW BLEASE your investable assets are $100,000, you probably should not work with an advisor whose average client invests $1 million. Why? Because you’ll be a small fish in a very big sea. Q. Do you have any client complaints or has any disciplinary action ever been taken against you? You should confirm this by checking the Financial Industry Regulatory Authority website at www.finra.org . Q. What’s the biggest mistake you made in the last five years? Beware of an advisor who says they don’t have one. We all make mistakes. Admitting them is a mark of a good and honest advisor. Q. How do you get paid? Advisors can be paid through commissions, fees or a combination of both. All methods are fine, just make sure the compensation arrangement fits your needs and you’re comfortable with it. Q. Do you use proprietary products? Proprietary products are financial products that are sold by advisors who work for the same company that creates and manages the products. The potential problem with proprietary products is the advisor may be limited in the range of products they can offer you. Independent advisors have a broad range of products to choose from, and will work to select the best choice for you. Q. What is your investment philosophy? Make sure the advisor’s philosophy of investment management and financial planning matches yours. For example, you don’t want to end up with a transaction-oriented broker when you are really more comfortable with a buy-and-hold philosophy. These questions are just a guide. The answers will give you insight into the qualifications, experience, investment strategies and values of your potential advisor. If you ask the right questions from the start, you’ll have the best chance of finding the right advisor for the long-term.

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

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

Company Name

Symbol

Jul. 18

Jul. 11 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.04 0.01 12.96 41.14

0.04 0.01 13.26 39.54

0.00 0.00 -0.30 1.60

0.04 0.01 8.35 32.96

0.52 0.10 15.94 41.15

8.36 0.52 1.81 7.76 57.26 6.11 85.29 18.95 58.86 3.88 16.02 27.34 32.34 27.70 23.90 15.06 96.09 41.06 48.42 10.59 62.96 53.17 18.64 33.22 27.14 50.98 58.10 188.19 32.13 59.56 5.59 35.14 32.30 9.92 49.18 22.06 1.33 30.73 25.71 41.09 58.26 34.80 37.03 35.86 46.40 65.06 19.45 10.90 56.80 43.60 16.62 38.68 54.73 8.14 9.53 45.90 26.79 61.47 16.73 27.66 38.92 23.19 118.90 30.87 13.80 33.24 73.08 31.10 34.00 9.54 19.50

8.35 0.54 1.69 7.63 56.46 6.31 84.09 19.37 57.59 4.01 15.55 25.87 31.73 27.66 23.18 14.92 94.50 39.92 46.90 11.09 63.22 51.06 17.88 32.36 25.97 51.67 53.70 185.25 31.21 57.34 5.28 34.59 30.75 9.65 47.55 22.81 1.60 29.98 26.67 40.35 58.92 33.15 38.03 34.77 46.66 62.82 20.30 10.54 55.31 42.78 17.98 36.91 56.38 7.85 9.56 44.94 27.58 59.79 16.20 27.30 38.10 24.79 116.52 32.44 14.12 32.28 72.26 29.94 33.27 9.10 18.93

0.01 -0.02 0.12 0.13 0.80 -0.20 1.20 -0.42 1.27 -0.13 0.47 1.47 0.61 0.04 0.72 0.14 1.59 1.14 1.52 -0.50 -0.26 2.11 0.76 0.86 1.17 -0.69 4.40 2.94 0.92 2.22 0.31 0.55 1.55 0.27 1.63 -0.75 -0.27 0.75 -0.96 0.74 -0.66 1.65 -1.00 1.09 -0.26 2.24 -0.85 0.36 1.49 0.82 -1.36 1.77 -1.65 0.29 -0.03 0.96 -0.79 1.68 0.53 0.36 0.82 -1.60 2.38 -1.57 -0.32 0.96 0.82 1.16 0.73 0.44 0.57

8.21 0.20 1.48 4.92 50.95 5.57 65.35 17.53 43.77 3.30 12.30 21.40 19.19 14.61 22.71 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 27.10 39.87 2.69 27.85 25.73 5.02 42.14 21.14 0.49 12.14 18.07 32.90 38.64 22.66 25.49 13.68 33.20 49.20 20.06 3.29 38.35 36.50 15.71 30.98 28.89 6.25 7.15 32.12 20.96 45.28 14.04 24.34 27.62 15.51 77.73 30.31 3.96 20.10 48.31 28.53 22.58 4.44 13.18

15.85 5.35 5.43 10.28 65.79 11.32 85.35 29.79 59.59 6.45 23.92 40.50 32.50 28.79 38.08 15.20 96.43 41.84 48.69 12.25 72.46 67.61 19.34 56.78 30.49 53.28 62.00 210.69 35.16 62.33 5.72 46.49 37.58 13.12 57.39 25.85 1.81 31.90 32.29 41.80 62.83 42.17 40.45 36.60 48.31 65.89 43.18 11.48 56.90 46.40 24.06 40.02 85.90 14.32 10.68 46.01 32.79 62.18 21.70 34.24 39.24 25.84 119.94 58.29 14.51 33.26 73.46 42.36 34.59 9.60 23.59

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

JULY 20, 2012

INSIDE REAL ESTATE & CONSTRUCTION

New home construction is up 30% over 2011 pace THE PULSE: Median Price Active Listings New Listings Pending Sales Homes Closed

TUCSON REAL ESTATE

7/9/2012

7/2/2012

$145,000 4,048 340 390 188

$145,000 4,001 314 328 149

Source: Long Realty Research Center

Every month, new home building permits data is published from Bright Future Business Consultants, exclusively in Inside Tucson Business.

MONTHLY BUILDING PERMITS: JUNE 2012 2012

2011

2010

2009

Pima County

Marana

Sahuarita

Tucson

So. Pinal

162

116

143

220

Oro Valley Total

Clearing inventory

Source: Bright Future Business Consultants

YEARTODATE BUILDING PERMITS JUNE. 2012 2012

2011

2010

2009

Pima County

298

281

421

354

Marana

239

150

199

Sahuarita

153

218

284

Tucson

151

116

190

162

So. Pinal

107

Oro Valley

953

732

1,166

947

Total Source: Bright Future Business Consultants

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

Current

By Roger Yohem Inside Tucson Business At the mid-point of 2012, new home construction in the Tucson region has held onto steady monthly gains and is now 30 percent ahead of last year’s pace. Year-to-date, 953 residential construction permits have been approved. That is 221 more than the 732 permits issued in the first half of 2011. Several of the region’s geographic submarkets have gained impressively. New permits in Sahuarita are up 125 percent, according to new data from housing analyst John Strobeck of Bright Future Business Consultants. Year-to-date, the town has issued 153 permits, up from 68 for the first six months of 2011 (see chart). So far this year, Marana has issued 89 more permits this year over 2011, an increase of 59 percent and inside the city limits of Tucson, the number of permits issued this year is up by 35, a 30 percent gain. Pima County has issued 17 more permits this year, a 6 percent gain. By the end of 2012, Strobeck is forecasting new home permits will total about 1,500, a target that still appears to be in reach. Typically, permits slow slightly during the latter part of the year.

Last Week

7/16/2012

One 12 Month 12 Month Year Ago High Low

3.75% 4.00%APR 3.75% 4.00%APR 4.95% 3.13% 3.25%APR 3.13% 3.25% APR 4.22% 2.88% 3.125%APR 2.88% 3.125% APR

4.95% 4.22%

The above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000 Information provided by Randy Hotchkiss, National Certified Mortgage Consultant (CMC) Peoples Mortgage Company, P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000 MB #0905432. Rates are subject to change without notice based upon market conditions.

3.75% 3.13%

Other than an occasional blip, both average and median home prices have been trending upward since September 2011. Clearly, the economics of supply and demand are in play as the inventory of homes has been shrinking since October. Much of the demand has been sparked by a large supply of bargain-priced foreclosures. These distressed homes have sold well to both private owners and investors. The rush to buy cleaned out much of that lower-priced inventory. New data from the Tucson Association of Realtors Multiple Listing Service that breaks down the supply side of the equation plainly shows the reduction in inventory is the reason sales prices are headed up. At the end of June, there were only 664 homes listed for sale at $99,999 or less. In the moderate price category, there were just 981 homes listed from $100,000 to $199,999. For June, the median home sales price was $140,000, up 19 percent from $117,500 in September. Over the same period, the average sales price has climbed 16 percent to $174,793, from $150,699. Since October, the number of active listings has been slowly declining, falling to 3,474 in June, from 5,290. The $199,999 and under price point made up 47 percent of the market. The $200,000 to $399,999 segment made up 31 percent of the inventory. Those ratios are expected to change places as consumers continue to absorb more of the lower-priced inventory at a faster pace, the Realtors report noted. At the high end, there were 593 houses on

the market at prices from $400,000 to $999,999 and 139 that were priced at $1 million or more. By volume, there were 1,269 sales in June, down 49 from May and down 43 from June 2011.

Wood prices soar Although overall prices for construction materials dropped slightly in the second quarter of 2012, softwood lumber costs are up 7.4 percent. Compared to a year ago, lumber prices are now 11 percent higher, according to the U.S. Labor Department. Overall construction materials prices declined 1 percent compared to the first quarter but are still 0.2 percent higher than a year ago. The federal government also reported that quarter-over-quarter prices of iron and steel products dropped 4.9 percent; nonferrous wire and cable fell 3.3 percent; steel mill products fell 2 percent; and plumbing fixtures and fittings dipped 0.7 percent. Concrete product prices were unchanged.

Sales and leases • Achilles Air Conditioning Systems purchased a 20,971 square-foot building at 1490 S. Cherrybell Stravenue for $1.025 million from Graybar Electric. Having outgrown their existing 5,200 square-foot headquarters at 1331 E. 16th St., owners Nancy and Preston Achilles plan to relocate their business to the Cherrybell building. Graybar Electric moved to its own larger building earlier this year. Graybar Electric was represented by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services. Achilles was represented by Dean Cotlow, the Cotlow Company. • Gould Family Properties VIII LLC purchased Swan Court Apartments, 1425 N. Swan Road, for $625,000 from Wells Fargo. The gated, 23-unit apartment complex features a pool, laundry facility and on-site storage. The buyers are based in Vero Beach, Fla., and the transaction was handled by Bob Kaplan and Allan Mendelsberg, Picor Commercial Real Estate Services. • Unrein Investments LLC purchased a 910 square-foot office building at 511 N. Craycroft Road for $127,500 from Steven E. and Maria E. Ruiz. The sellers were represented by Jeannine Irvin, Mark Irvin Commercial Real Estate Services. The buyer was represented by Richard Kleiner, of Picor Commercial Real Estate Services. • M3 Engineering & Technology Corporation leased 45,685 square feet at 2450, 2460 and 2470 W. Ruthrauff Road from Presson Scottsdale LLC. Rob Glaser, Picor Commercial Real Estate Services handled the transaction.

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

20 JULY 20, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Pleasant surprises are possible when traveling In his 1997 book, “The Old Patagonian Express: By Train Through the Americas,” travel book author Paul Theroux wrote, “You define a good flight by negatives: you didn’t get hijacked, you didn’t crash, you didn’t throw up, you weren’t late, you weren’t nauseated by the food. So you are grateful.” Thank goodness we don’t have so many hijackings any more. Others no DAVID HATFIELD doubt are thankful the airlines have eliminated food. For the bad rap airlines get — and as I wrote last month, the shoddy treatment is our own doing by demanding the absolute cheapest fares — some pleasant surprises can be found on airlines and in airports these days. When I decided to try to combine a business trip to Milwaukee, Wis., last month with a few days of personal vacation time with my wife near her northern Illinois home town, we were surprised at how generous Alaska Airlines was in volunteering to refund half of a round-trip ticket my wife bought from Arizona to Bellingham, Wash. Apparently airlines are supposed to offer that option when they make a significant schedule change, but who knew? Alaska volunteered it as we were trying to figure out a way to get my wife from Bellingham to Milwaukee. We wound up using Frontier Airlines. Now, there is a good airline that, sadly, has hit some financial turbulence. For as disappointing the news was this week that Frontier won’t be resuming service to Tucson afterall, we’re not alone. A year ago, Frontier was Milwaukee’s dominant airline with 86 daily departures but as of last month it was down to just seven departures a day. Its concourse at Milwaukee’s General Mitchell International Airport looked sleek and new but was a ghost town. The vagaries of airfare pricing can produce their own surprises. We thought of flying to and from Chicago, rather Milwaukee. There was the convenience of a non-stop flight and we were going to rent a car so it seemed reasonable to expect lower prices at a larger airport with more competition. A cursory check showed that our theory was wrong. But the decisionmaker was that the airfare was $95.90 less to Milwaukee. The irony is that on the return, the flight required a connection in Chicago. You get a different perspective of Chicago’s O’Hare when you use it as a connecting airport rather than as a destination. The credit card we use gives us passes to American Airlines’ Admirals Club but we never got there on this trip. Knowing we had time, we headed to a Wolfgang Puck Cafe we knew was near the entrance to American’s K concourse. It was actually very pleasant. We almost got sidetracked by a new place named ICE Dishes and Drinks that opened in June on American’s L concourse. The sleek, contemporary design with 26 different vodkas and a tapas menu was intriguing but we stuck to our original plan. Another option at O’Hare is Tortas Frontera on the K concourse from famed Chicago Mexican food chef Rick Bayless. Yes, there can be good food at an airport. There are pleasant positive surprises to be had traveling, even these days.

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

EDITORIAL

This July seems slower than most There cannot be a slower time of the year for Tucson business than right about now, the middle of July. Most school districts are still a month away from opening, so families are out of town on vacation. Students don’t have to be at the University of Arizona for fall classes until Aug. 20. Winter visitors are — hopefully, for their sakes — enjoying cooler climes up north. It’s always a dead time of the year in Tucson. But this year it seems deader than most. Business leader, after leader — from architects and auto dealers to restaurateurs and retailers of all kinds — tell us their businesses have come to a screeching halt this year. And unexpectedly so. Up until this point, 2012 was showing signs of promise that at long last the Tucson area might begin to work its way out of the economic recession that has hit this region harder than most in the U.S. Aside from the usual Tucson summer doldrums, there’s another dynamic at work this year: the November elections. Reports in national media say potential investment money is being kept on the sidelines until those controlling it have a chance to assess the outcome of the elections. It makes little difference which party might win the presidency or control of Congress, it’s the uncertainty that is holding it back. It’s an attitude that often happens in election years, though in past years the slowdown typically waits until Labor Day, which means its impact is only felt for about two months. This year, the slowdown already seems to be in full braking mode. The Commerce Department this week reported that nationwide retail sales were down for a third straight month in June. The last time this happened was mid-way through the recession in the second half of 2008. The pullback in spending cut across virtually all retail sectors with only small gains posted by clothing,

grocery and liquor stores as well as online buying. Worse, research released this week by Citigroup forecasts consumer spending will remain slow until the end of the year. About two-thirds of respondents say they don’t expect the economy to improve or that it will get worse over the next six months. Back-to-school sales, which for many retailers is second only to the end-of-the-year holiday season, will be “challenging,” according to Citigroup. So just when a Tucson business leader might have been able to feel things were finally starting to improve, a bigger phenomenon hits to slap her or him back. And, of course, we in Tucson tend to wring our hands and worry a lot. Perhaps for good reason. As we noted in this space last week, we don’t make a lot of things in Tucson, which puts our economy in a precarious position compared to places that have more diverse economic bases. But before totally giving up, it’s worthwhile to note there are some glimmers of hope. Several reports recently point to indicators that Tucson is on the cusp of seeing some of the biggest increases in home values in the U.S. by the end of the year. Considering median home values here plummeted 45 percent from their peak in 2006 and have gained only about 3 percent of that back, Tucson is due. July is always a difficult time of the year to do business in Tucson and this year may be about as bad — or worse — than it has ever been due to the elections. It would have been better if some of the politicians running this year could have provided constituents with more confidence about the future — either by actively showing results of this region going toward a more diverse economy or, at the very least, helping to boost confidence in the future that could have sparked spending.

InsideTucsonBusiness.com

JULY 20, 2012

OPINION BUSINESS INK

When the heat is on, watching how real Tucsonans cope is amusing Despite 90-degree heat by 8 in the morning, rattlesnakes coiled up by the back door for shade, and roaches that jump out of the shower drain, summer is the best part of living in Tucson. Yeah, the collegiates and snowbirds are gone but there’s still lots of free entertainment out there. When the heat is on, watching how real Tucsonans cope is amusing. It’s like a sitcom reality TV show, just lay back and watch how goofy people act just because we live in a toaster oven. Some odd behaviors make sense, like people who drive wearing oven mitts. Their un-air conditioned cars are like broilers. The metal ignition switch and steering wheel can cause second-degree burns. (Confession: Years ago as newlyweds, my wife and I kept a set of mitts in the front seat of our “Car-B-Q.” Been there, done that, got burned.) Other summertime antics are just strange, like the folks who cram their pillow and sheets into the freezer a few hours before bedtime. Or buy Big Gulps, the cold drinks that are three times the size of their bladder. And who doesn’t have a neighbor who streaks out to get the morning paper thinking that no one will see him halfnaked in his tattered boxer shorts?

During summer, many social standards melt away. The rules of etiquette don’t apply. With that in mind, here’s some other weird ways to cope with hot times in the Old Pueblo: ROGER YOHEM • Homemade Margarita Pops top the list. Just borrow the kids’ plastic popsicle molds and choose your flavor. The thrill of the chill is tasting all the different combos as you mix. For best results, freeze overnight and never slurp alone. • Next is the frigid waterbed, made of freezer-ware, the flat, blue plastic containers found in coolers. Freeze about 10 containers and spread them out under a bed sheet. Then, lay down and cool down. Once they thaw, stick the containers back in the freezer. Repeat as necessary. • Another odd activity is utility pole utilization. At bus stops, people hide behind skinny 16-inch streetlight poles for a sliver of shade. Savvy commuters carry an umbrella. • For casa creepers like scorpions and

roaches, really big shoes are strategically placed for squashing after the screams. Others cope with the critters with a spray bottle full of rubbing alcohol. Just fire away from a safe distance to dissolve their exo-skeletons. • Blocking dazzling sunlight from 5:15 a.m. sunrises is another ritual, especially in east-facing bedrooms. Layering is the key. Start by placing a silver windshield sunshade in the window. Follow that with a precision-cut piece of cardboard held in place with duct tape. Cover it all up with a decorative towel and close the curtains. (Another confession: We’ve also been there, done this). When people are delirious from the heat, there’s no shortage of stupidity. For law enforcement and fire officials, coping with stupid summer behavior is embedded in our quality of life. In fact, it’s a state law. Under Arizona’s “stupid motorist” law, anyone who purposely drives around barriers at a flooded street or wash and gets stranded can be billed up to $2,000 for emergency rescue expenses. Sadly, it’s a people-watching lowlight of summer, seeing a driver stuck in a wash during a monsoon sitting on top of their underwater car. During the “dog days of summer,”

certain irresponsible people take advantage of the situation. Truth be told, this phrase does not refer to their pets’ behavior. Instead, it describes the deceitful demeanor of dog walkers. To stay hydrated, they will carry two water bottles instead of one. One is for them, one for Woofie. And since both hands are now full, they stick their doggie doo-bags in Woofie’s collar. Most of the plastic sticks out like a white flag, sending a message to all that they pick up after their pooch. Therefore, I am a good neighbor. But it’s just a public sham. By the time they reach the end of the street, turn around, chat with a few neighbors, and walk back past Woofie’s pile, they know the blazing sun will have dried up the evidence. They stroll on without stopping, muttering aloud some faux disgust about their rude neighbors. Forgive me for wandering off topic this week; I myself am a bit delirious from the heat. Perhaps a Margarita Pop will help me cope.

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.

GUEST OPINION

No need for far flung junkets, we’ve got the answers right here Over the past few years our community leaders from public and private sectors have traveled the United States looking for the magic bullet that will spur job creation and bring about economic diversity to Pima County. Our economic development agency Tucson Regional Economic Opportunities (TREO) has lead junkets to Portland, Ore.; Austin, Texas; Huntsville, Ala.; Albuquerque and most recently, San Diego. The irony was crystal clear to me when I attended Caballeros Del Sol’s Mexico Trade Exchange at the Westward Look, which took place the same dates in May as TREO’s trip to San Diego. No one from Pima County was in attendance at the Westward Look event. Pima County is a major funder of TREO. It’s time to ask: Are voters getting their money’s worth? My area of study at the University of Arizona was in regional development. I remember experts coming to address our classes stating that Pima County is an example of how not to regionally plan a community. Our infrastructure is under developed, our economy is primarily focused on government and the service sector. Our poverty rates are high, the condition of our roads are bordering on unsafe. We have a

world class university yet discourage entrepreneurs through a maze of regulations and hurdles that chase job creators away. Pima County lost a Raytheon TANNER BELL Missile Systems division to Huntsville, Ala., because Huntsville has had a 40-year plan that spells out to every level of government and the private sector where it is going as a community. Here are some statistics that paint a dark picture: From 2001 to 2010, manufacturing jobs in our region are down 27 percent, information industries jobs are down 44 percent, and transportation and warehousing jobs are down 16 percent, according to a memo TREO sent to the Pima County supervisors in March. The jobs we are adding are in the services sector, up 17 percent; food services up 14 percent and telemarketing up a whopping 93 percent. The population over

the same period grew by 20 percent. This trend is alarming and it’s no wonder we are seeing increased poverty. We have some big problems in Pima County: Over the past two decades of Democratic leadership at the Pima County Board of Supervisors we are left with a county government that acts like a city but doesn’t have the sales tax revenue to pay for it. To make up for money to pay for services, the Board of Supervisors keeps increasing your property taxes. Pima County’s property tax rate is more than four times higher than our neighbors in Maricopa County. We’ve run up the county credit card paid for by your homes and businesses with three times as much debt on the books as all the other 14 counties in Arizona combined. Pima County has grown from a $770 million government to $1.4 billion in a decade. What are we getting for this money? If you haven’t had a chance to drive around the communities surrounding Phoenix you’ll notice clean medians, paved and pothole-free roads. You’ll see freeway systems that move people, you’ll see Intel

opening a $5 billion plant in Chandler that will hire 1,000 high-paid workers. Our neighbors up north don’t blame or complain. They set a course and execute. As I travel District 3 and all of Pima County, I hear families asking for job opportunities that allow them to raise a family and contribute to the community. I hear business owners looking for a fair and even marketplace where not just the politically connected can get things done. The world is passing us by, our children are graduating and leaving. It doesn’t take an open bar and a trip to San Diego or Portland or Austin or Albuquerque to figure out, “it’s the economy stupid.” We live in the most incredible spot on earth. The people of Pima County are hard working and have deep cultural roots, we need to embrace that energy. It’s time we bring pride back to Pima County and get ready to compete with all the communities in America. We can do better and strong leaders can make a difference.

Tanner Bell is a Republican candidate for Pima County Supervisor in District 3. His website is http://votetannerbell.com/ .

22 JULY 20, 2012

INSIDE TUCSON BUSINESS

OPINION ADVOCATING FOR BUSINESS

Chamber survey reveals business sentiments about Tucson economy I’m big on research. To me, research is like GPS for businesses and nonprofits alike. Knowing what your customers (our members) want and need is the only way to know if your current products and services really have value to the end user. Ditto for developing new products and services. The results of a recent survey of local business owners and executives confirm the Tucson Metro Chamber is connected to what matters most to local business interests. Here is a sampling of the results of this survey. In some cases, only the top three responses are listed. • What would you say is the biggest challenge facing the overall business community today? 56 percent: the economy 16 percent: local regulations 10 percent: other • What would you say is the biggest challenge facing your business? 50 percent: the economy 14 percent: profitability/growth 12 percent: competition/exposure • How would you rate the following government entities? (On a scale of 1 to 9, with 9 being the highest performance score) 5.4: State of Arizona

MIKE VARNEY

4.5: U.S. Congress 4.5: City of Tucson 4.1: Pima County • Which of the following services or features do you associate with the Tucson Metro Chamber? (Check

all that apply.) 74 percent: Promoting a strong local economy 71 percent: Government representation and advocacy 70 percent: Relationship building opportunities 64 percent: Promoting the community 61 percent: Communications such as newsletters, emails, alerts and publications 57 percent: Major events featuring government, business and civic leaders 52 percent: Economic development 45 percent: Seminars, workshops and learning programs 40 percent: Business referrals and new business opportunity alerts 34 percent: Education and workforce

how well do you feel the chamber is doing? Score: 7.5 • How well is the Tucson Metro Chamber doing in meeting your expectations with respect to the reasons your company joined the chamber? Score: 7.9 The survey indicated the vast majority of Tucson Metro Chamber members feel fulfilled in their business relationship to the chamber. Many members cited a lack of time as the reason why they are not more involved in chamber activities and events. So based on the results, we think the Tucson Metro Chamber is on the right track. We’re proud of our contributions to local business and look forward to increasing our contributions and influence in the coming year. “When business is good, life is good” is more than the mantra at the Tucson Metro Chamber. It’s a mandate from you to make a difference!

improvement • Indicate how well the Tucson Metro Chamber does in each of these activities. (Again, on a scale of 1 to 9) 7.9: Offers seminars, workshops or learning programs 7.7: Offers relationship building opportunities 7.6: Promotes a strong local economy 7.6: Promotes the community 7.4: Offers major events featuring government, business and civic leaders 7.3: Represents and advocates for business in government 7.1: Delivers quality communications such as newsletters, emails, alerts and publications 6.8: Helps improve education and workforce 6.6: Provides symbols of credibility 6.1: Holds government accountable The survey also included three questions about the overall performance of the Tucson Metro Chamber. • In general, how favorable or unfavorable are you towards the Tucson Metro Chamber? Score: 7.1 • When considering the overall performance of the Tucson Metro Chamber,

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

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JULY 20, 2012

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24 JULY 20, 2012

EVERY MORNING DAILY NEWS — DELIVERED TO YOU!

INSIDE TUCSON BUSINESS

Saluting an Exceptional Man John P. Lewis After nearly 50 years of service to this community, John P. Lewis has announced his retirement as vice chairman of the Bank of Tucson. While he might be retired from banking, it’s encouraging to know that John will continue giving back to our community in many ways – and we look forward to seeing his next move! Congratulations to our friend, John P. Lewis, on a fulﬁlling and meaningful career! Jim Click, the Bank of Tucson board of directors, and all of your bank colleagues

A tireless advocate for community banking, John has represented the courage and spirit necessary to help individuals and small businesses realize their dreams, and you don’t have to look far to see the results of his work: s AIDING IN THE COMEBACK OF THE Mt. Lemmon community after the devastating 2003 Aspen Fire s SHAPING FEDERAL PUBLIC POLICY THAT supports community banking, while serving on a special FDIC committee s WORKING ON THE BOARD OF THE 3TEELE Memorial Children’s Research Center to ensure that our kids receive the best possible care

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