Inside Tucson Business 10/12/12 by Territorial Newspapers

COLORADO BUILDERS TAP GREG MIEDEMA National remodeling expert and SAHBA stalwart to lead HBA’s comeback PAGE 7

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • OCTOBER 12, 2012 • VOL. 22, NO. 19 • $1

BlogTalkRadio takes thwack at traditional marketing Keller Williams exec takes to the internet to discuss real deals Page 4

Two propositions target reforms

Housing clings to small gains

Trust issues hamper city’s plea for $100M road bond

PAGE 3 Patrick McNamara photo | Illustration by Andrew Arthur

Props 116 and 117 tackle tax issues Page 16-17

Weak month doesn’t thwart yearly progress Page 23

City, Rio Nuevo negotiating to end lawsuits with cash, property trade By Patrick McNamara Inside Tucson Business Rio Nuevo would turn over $2.1 million to the City of Tucson in exchange for the titles to some downtown properties as part of a settlement agreement under negotiation between the two entities to end pending litigation. Details of the settlement were included in some emails sent among Rio Nuevo Board Chairman Fletcher McCusker, Tucson Mayor Jonathan Rothschild, Tucson City Attorney Mike Rankin and Mark Collins, attorney for Rio Nuevo. Inside Tucson Business has obtained copies of those emails. “I believe that we are a few days or weeks from having something we

can talk about,” McCusker said, adding the conversations were still preliminary and approval of a settlement agreement by the City Council and Rio Nuevo board would be necessary. The properties includes several west of Interstate 10 and a few closer to the Tucson Convention Center. Rio Nuevo had claimed ownership of the properties but the city holds title to them. McCusker has suggested Rio Nuevo remove the disputed properties from its balance sheets temporarily so an audit can be completed. A previous audit was considered “qualified” because the board claimed the properties as assets. He said the board needs to have an unqualified audit if it wants to sell

bonds to fund projects. Rankin declined to talk about the negotiations saying the City Council had discussed the issue in executive sessions, but did say the goal of the talks is to keep the parties out of a lengthy court case. The money Rio Nuevo would pay to the city comes from $6.4 million in unspent funds from bonds the district sold in 2008. The deadline to spend those funds on projects expired last November, which means the remainder can only be spent on debt payments. Despite having spent millions on lawyers, accountants and bond advisors, the Rio Nuevo Multipurpose Facilities District board that was empanelled in 2010 either was unaware

of the deadline or chose not to spend the money. City Councilman Steve Kozachik said he was glad to see the two parties trying to hash out the dispute outside of a courtroom, but was concerned the public would view it as a backroom deal. “We’re too close to getting this relationship on solid ground to be leaving even the perception of impropriety in peoples’ minds,” Kozachik said. The Rio Nuevo board plans to discuss the settlement at its Oct. 22 meeting.

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

2 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

OCTOBER 12, 2012

NEWS

$100M road bond a question of trust, city leaders say

Businessman convicted of chemical weapons attack

Tucson city leaders want voters to approve a $100 million bond package in the Nov. 6 election to pay for roadway improvements. ments. “To me, it’s a basic issue that we need eed our roads fixed because they haven’t been en fixed in like 30 years,” Mayor Jonathan Rothschild hschild said. The mayor has been the foremost ost supporter of the roads bond, but convincing vincing residents to support the plan could d prove difficult as the region has a long history story of rejecting roadway bonds and people display little faith in city government. By the city’s own estimates, major jor and residential streets are in possibly thee worst condition ever. Thousands of work orders for roadway oadway repairs remain open and with as much ch as 25 percent of major city streets rated in poor or failing condition. Residential streets are even worse, with more than half in failed or poor condition. That won’t come as a surprise to o many who’ve been vocal about the ruts, cracks cks and potholes. “The City of Tucson has a very poor oor history of maintaining its infrastructure, e,” said former City Councilman Fred Ronstadt, dt, twoterm councilman in Tucson’s Ward 6. Ronstadt, who served two terms ms from 1997 to 2005, called the city’s efforts at street maintenance a “Band-Aid” and places much of the blame with previous city councils. “The council has historically not valued maintenance,” he said. “From about 2005 on, the priority to deal with failing infrastructure was given more lip service than real support.” The proposed $100 million bond package would be paid for through an increase to secondary property taxes. The five-year plan should cover 130 miles of major roadways

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

City of Tucson

By Patrick McNamara Inside Tucson Business

and 114 miles of residential streets. “All cities pay for roads with road bonds,” Rothschild said. He estimates that repaired roads would have a 30-year lifespan and, coupled with ongoing Regional Transportation Authority roadway capacity improvements, would greatly improve driving conditions throughout the region. City officials calculate a cost to residential

property owners with homes with a fullcash value of $100,000 of about $18 per year. The relatively low cost to homeowners could be the city’s strongest selling point, despite the widespread contempt among residents over the longstanding poor condition of roads. “I just don’t think this is going to pass,” CONTINUED ON PAGE 6

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 DAVID MENDEZ dmendez@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

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

The owner of Burns Power Washing has been convicted of making and using a homemade chemical weapon against a customer who refused to pay a bill for $200. Todd Russell Fries, also known as Todd Burns, was convicted Oct. 5 in federal court in Tucson of the chemical weapons charge and giving false information to the FBI. The conviction stems from two attacks against a customer’s home that included spray-painting swastikas and anti-Semitic slurs on the home, sealing the garage door and front door shut with adhesive and strewing motor oil, dead woodpeckers, feces and foam packing peanuts on their driveway. The chemical charge stems from a second attack that included a toxic concoction of paint, motor oil and ingredients giving gave off a chlorine smell that forced a neighborhood evacuation. Fries could face life in prison because the chemical weapons charge is aimed at terrorists. The charge of lying to the FBI could bring a five-year prison term. Both charges can also include fines of $250,000 each. The first incident occurred in 2008 when the owners of a northwest side home were not happy with the power washing job Fries did on their driveway and stopped payment on a $200 check. According to prosecutors, Fries vandalized their home and driveway, including strewing the motor oil, dead woodpeckers and packing peanuts on their driveway and up to the front door. Swastikas and anti-Semitic slurs were spray-painted on the couple’s home. The couple then moved to a gated community near Shannon and Magee roads but were subject to a second attack in 2009. Their front door, windows and garage were sealed the neighborhood was evacuated after a concoction that included paint, motor oil and foam peanuts was spread outside the home. Fries also set off burning debris and spread dead birds and animals. The incident sparked the chemical weapons charges. During their investigation, law enforcement officials found weapons at Fries home. Investigations are continuing on possible other attacks. Fries, who remains in custody, is due to be sentenced Dec. 14 by U.S. District Judge Cindy K. Jorgenson.

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

6 8-9 12 14 15 15 19

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

20 20 22 23 24 24 27

4 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

NEWS

Report: Arizona has the highest sales taxes in U.S. Arizona has the highest sales tax burden in the United States, according to a report out this week by Tax Foundation, which also noted the state is ranked No. 27 for overall tax burden. The conservative research organization ranks Wyoming, South Dakota and Nevada as having the lowest tax burdens for businesses and residents. New Jersey has the highest tax burden, followed by New York and California. Although Arizona’s state sales tax is 6.6 percent, local jurisdictions add up to 3 percent more. While California and Nevada have higher state sales tax rates, at 7.25 percent and 6.8 percent respectively, local jurisdictions within those states tend to have lower rates than in Arizona. Arizona tax rates that rank low with the foundation are: • 51, the lowest, for unemployment taxes on employers but that also means Arizona offers some of lowest benefits to unemployed workers. • 46, or fifth lowest, for property taxes. • 28 for corporate income taxes. • 17 for personal income taxes.

By Roger Yohem Inside Tucson Business Every Thursday, Internet radio listeners can tune into an innovative show that takes a thwack at out-performing traditional radio marketing. It starts a bit like this: “And now, live from Keller Williams’ beautiful BlogTalkRadio studio in our second-story conference room on a bright blue-sky day in Tucson, it’s time to talk real estate.” BlogTalkRadio? “Welcome to the ‘Deal Maker Show’. I’m Chuck Corriere, your host for the next hour. If you’re interested in buying, selling or investing in commercial property, stay right here. You are about to hear inside secrets that only an experienced deal-maker knows. With our guest, we’ll talk about real deals in real estate that got done. Our goal is to show you how to be a more successful deal-maker yourself.” Corriere, senior vice president of Keller Williams Commercial Real Estate, 1745 E. River Road, is pushing the limits of traditional marketing. Shows on ordinary radio stations are being challenged by extraordinary technology. From 2005 to 2009 while at Long Realty Commercial, Corriere hosted a weekly onehour talk show on KJLL radio. Out of his own pocket, he paid the $15,000 a year cost. “We got quite a bit of business off the show but it was quite expensive. A big investment in radio,” he said. “Then one day, we realized we could do this on the Internet, have a better show and reach more people.” “The times changed so did we, jumping to the Internet,” added co-host Clint Nelson, a Keller Williams sales agent. “As far as we know, no other Realtors in town are doing BlogTalkRadio.” Basically, anyone with a phone and Web connection can host a show on any topic at any time through the BlogTalkRadio.com network. For a fee, the host gets a Web page, password and time slot. Shortly before show time, the host dials into the network and from there, the show is fully automated. Shows stream directly from the host page. Listeners can tune in and/or ask questions via the Web, mobile device, Skype or iTunes. Typ-

George Howard

The federal government on Tuesday sued Wells Fargo, claiming the bank committed fraud by recklessly approving governmentbacked mortgages and then seeking government insurance when those loans flopped. In the lawsuit filed in U.S. District court in Manhattan, officials with the U.S. Attorney’s office and the Department of Housing and Urban Development (HUD) contend the Federal Housing Administration (FHA) has wrongfully paid millions of dollars in insurance claims on loans that defaulted. Wells Fargo has the largest market share among banks operating in Arizona. “As the complaint alleges, yet another major bank has engaged in a longstanding and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient backstop of government insurance,” U.S. Attorney Preet Bharara said. He went on to say the charges against the bank include its institution of a bonus incentive plan that rewarded employees based on the volume of loans approved that “was an accelerant to a fire already burning, as quality repeatedly took a back seat to quantity.” Bharata said that although questions were raised internally, Wells Fargo only began to step up its self-reporting of bad loans after the U.S. Attorney’s office issued a subpoeana last year. Wells Fargo issued a statement denying the allegations, saying it believes it acted in good faith and in compliance with FHA and HUD requirements. It said its FHA delinquency rates have been as low as half the industry average. “The Bank will present facts to vigorously defend itself against this action. Wells Fargo is proud of its long involvement in the FHA program, which has helped so many people obtain affordable mortgages and become homeowners,” the statement read.

BlogTalkRadio takes thwack at traditional marketing tactics

He came to Tucson in 2005 and joined Keller Williams in September 2011. Globally, Keller Williams has 83,000 agents and BlogTalkRadio provides him with a communications platform to reach them. He promotes the show to them regularly in addition to 2,500 personal contacts in his database and some 1,500 Twitter and FaceBook Guest Eric Oxman (left) on Chuck Corriere’s weekly internet radio show. followers. ically, the show gets one or two “callers” a Th e global reach has brought calls from as week. Each show is archived as a podcast “and far away as Norway and Australia. As a recent we often forward the link to clients,” said Nelshow wound down, Corriere squeezed in son. some closing advice. Corriere invested about $3,000 in equip“Our mission is to provide timely and valument for his new show that airs at 10 a.m. Thursdays (Arizona time). The “broadcast” able real estate information from real people who do real deals,” he said. “Our hope is that fee is now only $40 a month. Corriere, who attended Harvard Business some of these ideas can make you more sucSchool, has a solid grasp of marketing metrics. cessful at deal making.” Deal making. That was Nelson’s signal to During his career, he was CEO of a national queue the music up and out…. computer company in Denver before acquirGeorge Howard

U.S. sues Wells Fargo over bad mortgages

ing it. Years later, he sold the business and then founded Corriere & Associates, a nationwide company that consulted on health care mergers and acquisitions.

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

PR CORNER The PR Corner column, which normally appears in Inside Tucson Business the second week of each month, this month will appear in the Oct. 26 issue.

Correction Arizona’s Judicial Performance Review Commission is appointed by the Chief Justice of the state Supreme Court, not the governor as said in Carol West’s “Speaking Out” column on Proposition 115 in the Oct. 5 issue. Dr. Vijay Modur’s last name was misspelled in a People in Action item concerning his hiring at HTG Molecular Diagnostics in the Oct. 5 issue.

InsideTucsonBusiness.com

OCTOBER 12, 2012

NEWS

Businesses, law enforcement form task force on metal theft By Alan M. Petrillo Inside Tucson Business A wide assortment of business and construction organizations have banded together with law enforcement and governmental agencies to combat the problem of metal theft in Southern Arizona. Originating with the Metropolitan Pima Alliance (MPA), the Metal Theft Task Force now has more than 110 individual members and 12 organizations represented, as well as representatives from law enforcement in Pima County, Tucson, Marana, Oro Valley and Sahaurita, according to Amber Smith, executive director of MPA. “As the cost of copper has tripled and costs of other metals have doubled, thieves have found those metals especially attractive as materials to be stolen,” Smith said. “Metal theft is a $1 billion problem nationwide, and the city of Tucson has reported being negatively impacted this year by $2 million in property and assets damaged by copper and other metal theft. Across the state, it’s a multi-million dollar problem.” Besides MPA and local jurisdictions, task force members include Building Owners and Managers Association, Southern Arizona Home Builders Association, Arizona Builders Alliance, Tucson Utility Contractors Association, the Alliance of Construction Trades, Desert Metal Recycling, Tucson Electric Power, Southwest Gas Corp. and 88 Crime. Lt. Tom Earley, of Tucson Police Department’s property crimes division is coordinating his department’s participation in the task force. Earley confirmed the $2 million in material value stolen through June of this year in the city, but noted the total value actually is higher. “That’s the value of the materials stolen as reported by the victims,” Earley said, “but doesn’t include the actual cost of returning the property to its original condition. There might be a value of $2,000 put on copper wire stolen, but the cost to repair any damage done to the property when it was ripped out, as well as replacing it with new copper wire would be much higher.” Ramon Gaanderse, executive director of the Tucson Utility Contractors Association (TUCA), said many of his group’s members and suppliers have been hit by metal thieves. “A lot of our members do water and sewer work and have had supplies stolen from their yards and also from construction sites,” Gaanderse said. “They’ve even stolen those large metal plates that are put over a temporary construction hole in a roadway. Thieves show up with a van or truck with a winch on it and take the plate away in the back of the vehicle.” Gaanderse said TUCA would like to see

legislation “with teeth behind it so we can actually prosecute the thieves and levy hefty fines.” Dan Heirshberg, manager at Desert Metal Recycling, said copper is the chief metal that’s being stolen, followed by sheet metal, aluminum and copper-aluminum coils. “Copper is the most valuable and available to thieves,” he said. “They’re stealing it from street lighting and signs, and from construction yards and sites.” Scrap dealers have had to spend a lot of money to prevent theft from their yards, as well as to meet state and local regulations regarding the sale of scrap materials. “Recyclers are required to have high intensity cameras that record a vehicle, the individual seller and the items being sold,” Heirshberg said. “If it’s a commercial company registered with the scrap dealer, the dealer keeps the names of employees on hand who are authorized sellers. If it’s an individual, we get a driver’s license, record it electronically along with fingerprints, and a statement of ownership from the seller.” Heirshberg noted that state law requires a recycler to send a check to an individual seller’s home, rather than paying cash, for any items (except aluminum cans) that exceed $300. “As an organization, the Task Force advocates reducing that figure to as low as $25,” he added. Smith said that working on legislation is only one portion of the Metal Theft Task Force’s efforts. “We have three goals: Education, electorate and enforcement,” she said. “We have an

education committee putting together a campaign about calling 911 or 88 Crime to report any kind of metal theft so local law enforcement is aware of the situation. We’re also trying to raise money for 88 Crime to allow them more resources to deal with the issue.” On the legislative front, the task force is working on a measure that would reduce the amount of money that can be paid in cash for scrap materials. The group also would like legislation that would include the value of repairing property damage as part of restitution when a metal thief is apprehended. Such a change could also mean making the crime a felony, rather than misdemeanor as it is currently. Jim Kuliesh, president and chief operating officer of the Alliance of Construction Trades, noted that state Rep. Ted Vogt, RTucson, has been working with the Metal Theft Task Force to craft legislation that would accomplish those goals. “Copper theft has been a major problem in the construction industry for a number of years,” Kuliesh said. “Thieves have been stealing plumbing, electrical conduit and air conditioning units. Having stronger legislation to deal with the problem would be a great help.” As for the enforcement goals, the task force is encouraging the cooperating law enforcement agencies to create their own internal task forces to deal with the problem. “We want to make sure law enforcement has the resources it needs to accomplish their goals,” Smith said. “They have been very helpful in working with us on this issue.” Earley noted the Tucson Police Department ran an undercover operation in June that found dealers were not complying with regulations about half the time. “We think most of that non-compliance was unintentional where people did not know what the law requires. So we’re in the process of providing education to metal recyclers and scrap dealers about the law’s requirements before focusing on enforcement,” Earley said. That education is part of the Tucson Police Department’s Metal Theft Reduction and Apprehension Plan, which Earley said focuses both patrol and detective resources on the problem. Smith said she expects there will be a public event next month where local mayors will endorse the task force’s efforts and condemn metal thefts. “We also hope they will be able to pass resolutions supporting our legislative efforts to deal with this problem,” she said.

This Week’s

Good News Frighteningly good More evidence there’s more money than ever in Halloween is shown in the fact that the Tucson region is now up to three major haunted houses this year: • Nightfall, the 22-year-old granddaddy at Old Tucson, 201 S. Kinney Road, is open Thursday nights through Sunday nights through Oct. 28. New this year is the Demon’s Den nightclub with weekly Friday night dance contests where the ultimate winner gets two tickets to a Lady Gaga concert Jan. 23 in Phoenix. Details at www.NightFallAZ.com . • SlaughterHouse, 1102 W. Grant Road in the old Farmer John’s meat packing plant, put on by the non-profit Tucson Screamers is open Thursdays through Sundays through October. Now in its sixth year, about half the venue has undergone a remodel and there’s a new zip line, live music on Fridays and “Teen Scream” on Saturdays. Details at www.SlaughterHouseTucson.com . • Night Terrorz, 1910 N. Stone Ave. in the old Bum Steer, is the newest venue to get a haunted makeover from an outfit named Scared Stiff Entertainment. It has turned the former multilevel restaurant building into a maze for a suspenseful story set in the early 1900s of twin sisters, one of whom is missing. It’s open Thursdays through Sundays through Nov. 4. Details at https://www.facebook.com/ScaredStiffEntertainment .

The Tucson

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

Stop robocalls, vote early In these last four weeks before Election Day, political annoyances will reach fever pitch. One way to cut down one of the biggest annoyances, robocalls. The advice: vote early. Pima County Elections regularly reports on the early ballots that have been returned. Political campaigns routinely get that information and, knowing a call to a person who has already voted would be fruitless, will take the number off their robocall list. Unfortunately, the same doesn’t hold true when it comes to an equal annoyance; calls from pollsters. The drawback to voting too early, though, is that these last weeks are when campaigns pull out the stops and you never know what might happen — good or bad — to a particular campaign.

6 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

NEWS Selected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIES Chapter 11 Business reorganization Marcy Merin, 3150 N. Lodge Road. Principal: Marcy Merin, debtor. Assets: $767,024.41. Liabilities: $2,569,482.67. Largest creditor(s): Wells Fargo Bank, Dallas, $1,939,213.42. Case No. 12-21816 filed Oct. 3. Law firm: Eric Slocum Sparks Lisa Newman, also known as Lisa S. Newman and Dr. Lisa S. Newman, 3150 N. Lodge Road. Principal: Lisa Newman, debtor. Assets: $771,123.01. Liabilities: $2,559,249.74. Largest creditor(s): Wells Fargo Bank, Dallas, $1,939,213.42. Case No. 12-21819 filed Oct. 3. Law firm: Eric Slocum Sparks Scott D. Harrington, 7739 E. Broadway #72. Principal: Scott D. Harrington, debtor. Assets: $201,321.00. Liabilities: $484,228.76. Largest creditor(s): JP Morgan Chase Bank, Columbus, Ohio, $255,711.83. Case No. 12-21913 filed Oct. 4. Law firm: Eric Slocum Sparks

FORECLOSURE NOTICES Dunlap Oil Company Inc. 1051 W. Beta St., Sahuarita 85614; and 171 and 173 W. Continental Road, Green Valley 85622 Tax parcel: 303-33-3920, 303-33-400B, 304-26-962B, 304-26-964A, 304-26-962C, 304-26-9630 and 304-26-9650 Original Principal: $8,000,000.00 Beneﬁciary: Canyon Community Bank Auction time and date: 11:30 a.m. Dec. 26, 2012 Trustee: Pat P. Lopez III, Rusing Lopez & Lizardi, 6363 N. Swan Road, Suite 151

LIENS Federal tax liens Dominguez Earthmovers Inc., 3750 W. Calle Dos, Green Valley 85622. Amount owed: $6,036.00. Dwight’s of Green Valley LLC and Dwight D. Lopez, 620 W. Ward Lane, Green Valley. Amount owed: $36,310.76. Latrikunda Transport Services LLC and Amelia Y. Nance, 3450 S. Broadmont Drive. Amount owed: $117,280.69. ASR Transport Inc., PO Box 11660, 85734. Amount owed: $12,165.00. AutoWorld of Tucson Inc., 2411 W. Wetmore Road. Amount owed: $3,124.25. Rainier Construction Inc., 8339 N. Oracle Road, suite 102, Oro Valley. Amount owed: $25,158.88. Baker Company Inc., 2110 E. 10th St. Amount owed: $10,891.42. Family Air LLC and James Beard, 2021 E. 12th St. Amount owed: $20,528.26. Air Excellence and Excellence LLC, 6610 N. Boswell Lane, Unit 1, Picture Rocks. Amount owed: $68,962.99. Corpuz Holdings LLC, 1211 W. Calle Del Ensayador, Sahuarita. Amount owed: $3,386.01.

State liens (Liens of $1,000 or more filed by the Arizona Department of Revenue or Arizona Department of Economic Security.) Rancho Grande LLC, 270 N. Grand Court Plaza, Nogales. Amount owed: $22,415.93. H&L Custom Painting LLC, PO Box 11271, 85734. Amount owed: $1,978.50. Las Cazuelitas De Tucson and AJF & Sons Inc., 1365 W. Grant Road #125. Amount owed: $2,499.14. J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $22,038.94. Chandler Hill Partners Inc., 3567 E. Sunrise Drive, Suite 143. Amount owed: $9,677.36. Peking Express LLC, 7442 E. 22nd St., Apt. 32. Amount owed: $1,453.65. Jett’s Wildcat LLC, 3055 N. Pantano Road. Amount owed: $18,151.63. Cafe Pacific LLC, 3607 N. Campbell Ave. Amount owed: $1,107.86. Bestcomm Networks Inc., 4400 E. Broadway, Suite 600. Amount owed: $24,865.77. Precision Alignment & Brake and Griffith Group LLC, 1400 S. Alvernon Way. Amount owed: $15,831.18. Rosati’s Pizza and Rosati’s of Tucson Inc., 8814 E. Tanque Verde Road. Amount owed: $46,796.94. Wilco Enteprises LLC, 3955 E. Fort Lowell Road #115. Amount owed: $89,731.53.

Report: Tucson lags state in new construction projects and jobs By Sarah Pringle Cronkite News Service The Tucson region has lagged behind the rest of Arizona in adding construction jobs over the past year. Statewide, Arizona has added 8,000 new construction jobs, a 7 percent increase, but Tucson has seen only 300 of them, a 1.9 percent increase, according to a new industry report. Leading the way for Arizona, the Phoenix metropolitan area added more construction jobs than all but two other metro areas in the U.S., according to the Associated General Contractors of America. “This is particularly good news because Phoenix of course has been the epicenter of the construction downturn,” said Brian Turmail, spokesman for group, which released the report at a job fair for high school students. The Phoenix area added 6,300 construction jobs between August 2011 and August 2012, reaching 90,800 positions. Los Angeles, up 8,600 jobs or 8 percent, and Houston, which was up 6,900 jobs or 4 percent, were the only areas that saw a greater rise in construction jobs for the year. The Tucson region added 300 jobs to reach 16,000, while Yuma added 100 to reach 2,200. ROADS CONTINUED FROM PAGE 3 City Councilman Steve Kozachik said. Kozachik said there’s just too much distrust of the city and its ability to manage municipal finances. The recent indictments of a pair of Tucson Department of Transportation workers following a nearly year-long investigation into allegations of theft and other wrongdoing likely hasn’t helped the perception of financial mismanagement at City Hall. That investigation found that city workers had for years used city equipment and material to complete side jobs, many of which were conducted while on the clock for the city. Kozachik said he supported putting the bond question to voters but by the time the council was scheduled to vote on funding the election, which could cost as much as $350,000, he changed his mind. In the interim, he said, the full extent to what the city transportation employees were accused of doing was made public. “This vote is a referendum on trust,” Kozachik said. His prediction that voters would reject the question falls in line with the history of similar bond issues in the region. City and county voters rejected tax-supported roadway improvement plans in 1986, 1990, 2002 and 2003. A proposal to bond a

Tian Chen, Cronkite News Service

PUBLIC NOTICES

Brian Turmail, spokesman for the Associated General Contractors of America.

For all of Arizona, construction jobs were up by 8,000 to 122,200, the group said. That’s consistent with data from the U.S. Bureau of Labor Statistics, which said construction jobs in Arizona rose by 6.7 percent during the period to 119,000. Turmail said that Phoenix is outpacing much of the nation because of Intel’s major expansion in Chandler. “The sad fact is that because the industry has lost so many jobs over the last six

$15 million study for a cross-town parkway from the east side to the northwest side also was rejected. Discussions in the early 1970s about building a cross-town freeway system were discarded long before a question could be put to the voters after residents loudly opposed the idea. Selling residents on the current bond question gets more complicated when the amount of taxpayer funds the city already receives is taken into account. In fiscal 2012, the city received more than $37 million in Highway User Revenue Funds (HURF), vehicle licensing and gas taxes the state collects and redistributes to local governments. Of that $37 million total, more than $20 million went toward road maintenance and repairs. The city has relied almost exclusively on HURF for its maintenance budget for decades. In fact, in 2012 HURF made up 97 percent of the maintenance budget. Some Arizona municipalities, including Mesa and Flagstaff, have augmented their streets maintenance budgets with local revenue sources like sales taxes. City leaders have said the money from HURF isn’t enough to pay for current needs and complained that the Legislature has reduced the allotment of the funds. “We have relied too heavily and too long

years, it really only takes one project to bump up the numbers in a place like Phoenix,” he said. Arizona has lost more than half of the 244,300 construction jobs that existed in June 2006, according to the report. David Muehlbauer, corporate director of learning and performance support with Sundt Construction Inc., said he worries that employers will face a shortage of help as construction picks up. “When the economy really comes back and there’s a bubble of demand, that’s going to impact the ability to get projects built,” he said. Part of the problem, said William Badger, professor emeritus at Arizona State University’s Del E. Webb School of Construction, is that many undocumented immigrants who worked in construction prior to the recession have left. “In a free enterprise system,” Badger said. “We make up for the shortage by paying a little more.” Daniel Culbertson, associate economist for Moody’s Analytics, said the state’s construction industry still has a long way to go. “I wouldn’t say it’s the driving force of Arizona’s economy,” he said.

on the excuse that the state is cutting HURF,” Kozachik said. He said it’s time for the city to start looking for additional funding sources to pay for road repairs, suggesting that dedicating a portion of local sales taxes might prove an equitable solution. Kozachik spearheaded a successful effort in May to get the city to refinance some of its HURF debt and use the savings to fund road repairs. That freed up $20 million to invest in roads. But Kozachik said the refinancing is a one-time deal and that more permanent funding sources would need to be found. “For the transportation department to rely solely on outside money is how we got into this problem,” Kozachik said. Rothschild said the city has begun to consider additional funding options but no decisions have been made. In the meantime, he intends to continue his lobbying for the road plan and said he’ll do the same if voters reject the proposal. “We need to fix our roads now,” he said. “Hopefully, people put enough trust in the new administration.”

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

InsideTucsonBusiness.com

OCTOBER 12, 2012

NEWS

Greg Miedema leaves to lead Colorado group Long-time Tucson builder and nationally known remodeling expert Greg Miedema, former owner of Dakota Builders and Rushmore Remodeling, has been named executive officer of the Home Builders Association of Northern Colorado. “When housing collapsed, they just decided to circle the wagons and ride out the storm. Membership fell from 505 to 175 so one of my main objectives is to strengthen the association,” Miedema said of his new position which starts Monday (Oct. 15). The Colorado association’s former executive officer, Dotti Weber, has retired after 32 years. Headquartered in Windsor, Colo., the association’s urban area with the most development is Fort Collins. In Tucson, Miedema was 2006 board chairman of the Southern Arizona Home Builders Association (SAHBA). In 1987, he founded Dakota Builders as a one-carpenter business. The absence of a formal remodeler’s network prompted him to join SAHBA in 1994. A year later, he co-founded the SAHBA

Roger Yohem

By Roger Yohem Inside Tucson Business

Greg Miedema will lead the Home Builders Association of Northern Colorado.

Remodelors Council with 18 members. About two years ago, mounting economic and personal pressures forced Miedema to close Dakota Builders. He re-entered the industry as Rushmore Remodeling, but closed that last December to take a post as SAHBA membership and programs coordinator. Over the years, Miedema has served

on the board of the National Association of Home Builders (NAHB) and chaired the NAHB Remodelors Council Board of Trustees. He was on the Certified Graduate Remodelor and the Certified Aging in Place Specialist governors’ boards. Nationally, he is a certified remodeling instructor and has served as a spokesman for the industry.

He was honored as an Up & Comer by readers of Inside Tucson Business in 2004. Bob Peterson, a peer who served with Miedema on various boards and is an officer with both the Northern Colorado and Colorado statewide builders association, reached out to Miedema about the new position. “He knew I was looking and called. Knowing someone there, I’ll have support,” said Miedema. “As for staff, I’m it. One. There is no secretary, just a lot of volunteers who help out just like SAHBA. I will apply some best practices I’ve learned from SAHBA and NAHB, I won’t be stepping out of my comfort zone.” Miedema credited his new board for planning ahead for housing’s comeback in the Fort Collins area. During an interview for the job, he saw communities that had “been dormant” for five years. “There’s activity again, a fresh start. And this also is an opportunity for me to start fresh again,” he said.

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

Children can teach leadership skills, speaker says What can adults in leadership roles learn from children? A lot, according to Craig Zablocki. “Kids are fearless, and as leaders we let some of these fears get in the way of us truly making difference,” Zablocki said. Zablocki was the featured speaker at a Society for Human Resource Management of Southern Arizona event at the Doubletree by Hilton Hotel Tucson — Reid Park Tuesday (Oct. 9). A former restaurant manager and highschool typing teacher, Zablocki is a nationally known motivational speaker based in Denver who regularly addresses corporate gatherings, business organizations and victims’ rights groups. Speaking on the theme of “Radical Leadership,” Zablocki told the nearly 300 attendees that childrens’ ability to not take themselves too seriously and work outside of their comfort zones are examples of leadership traits that can be translated into life and work. “Four-year olds don’t have a lot of selfhelp books, let’s not complicate things,” he said. People in positions of leadership, he said, can let their own fears hold themselves back and the people who work below them. “How do people learn from us, by what

we say or what we do,” Zablocki said. His presentation incorporates lots of personal interaction with the audience through participation, group activities and lots of high-fives and hand slapping. The whole purpose was to get the audience to step outside of themselves and the confines they might have created through fear and do things they might not otherwise have done. “I don’t think we’re here to learn something,” he said. “We’re here to un-learn.” He noted how some studies have found four-year old children laugh more than 300 times every day, while adults generally laugh fewer than 10 times a day. Zablocki questions whether what many adults learn as emotional maturity — suppressed emotions, fears of what other people think — is really evidence of maturity and a healthy emotional life. “What’s the key the key to being fearless? Don’t think about yourself,” he said. He advised attendees not spend their energy thinking about how to be a good leader and spend more time being a leader. That includes being willing to learn from other people and their ideas. “Do we want to be good leaders or do we just want to be right,” Zablocki asked. “We can’t learn if we think we know everything.”

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

Patrick McNamara

By Patrick McNamara Inside Tucson Business

Craig Zablocki works the crowd at the DoubleTree by Hilton Hotel Tucson – Reid Park on Tuesday.

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10 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

SMALL BUSINESS SMALL BUSINESS

Time to get health is right now, your business may depend on it For most of us, getting in shape is usually an idea that comes post-holidays; a New Year’s resolution made with the best of intentions. Besides, it’s October and soon we’ll be wearing layers of clothing, so we can afford to blow off the gym for a while and indulge a little. Then we hear that little voice in our head telling us we have to lead by example. Promote a healthy workplace and encourage employees to live a healthy lifestyle. Perhaps absenteeism due to illness has hurt your small business in the past, especially at this time of year when sales of Kleenex spike. A healthy workplace becomes top of mind when the employee medical plan is up for renewal and we cringe at the thought of a double-digit percentage increase, again. “But I’m a small business with just a handful of employees,” we tell ourselves, “wellness programs are for large companies that can afford them.” I’m pleased to share with you a newly launched program called the Healthy Arizona Worksite Program, which promotes the creation or enhancement of a worksite wellness initiative. This grant-funded program is available to all Arizona employers at no cost, and is a partnership between

the Arizona Department of Health Services, Maricopa County Department of Public Health and the Arizona Small Business Association. A worksite JERRY BUSTAMANTE wellness initiative is a well-planned, synchronized set of programs that include policies, benefits and a support structure custom fit to meet the needs of each work environment and its employees. The key to implementing a successful and sustainable worksite wellness initiative is buy-in and participation from you, management and senior leadership. The goal of a worksite wellness initiative is to create, over time, a culture of good health and safety, reducing healthcare costs along with absenteeism and increasing worker productivity. Why is worksite wellness important? Since 60 percent of adults in the U.S. over the age of 18 are employed and spend slightly more than half of their waking hours at work, the environment we create in the

workplace strongly influences their wellness. As a result, the workplace plays an important role in workers’ health and in the promotion of prevention programs that address long-term chronic health problems. As an employer, you can help your employees adopt a healthier lifestyle and decrease the risk of developing costly chronic diseases that can decrease productivity and your bottom line. The ultimate goal of the program is to help Arizona employers create stronger and more productive companies through increased workplace wellness. Employers who sign up to participate in the Healthy Arizona Worksite Program will receive thorough training on implementing and managing a wellness program through a five-part workshop series that covers the following program topics: • Making the case for worksite health, leadership and culture • Assessment and data collection • Data review and worksite health planning • Planning support, implementation and evaluation • Worksite health program evaluation and annual planning The Healthy Arizona Worksite Program

also offers a variety of tools and resources to support participating businesses. One of the primary resources is the Employer Toolkit with comprehensive information on nutritious eating, physical activity, healthy choices and preventive health screenings. The toolkit provides the employer with information and support to continue to introduce new initiatives and strategies that will keep their wellness program vibrant and relevant. More information about the Healthy Arizona Worksite Program is online at healthyazworksites.org . So far, training schedules are set up for Phoenix but classes will be offered in Tucson. The no-cost, grant-funded program is available to all Arizona businesses and it’s a great way for your small businesses to implement a wellness program suited to your unique worksite. Stop thinking of about improving the health of your worksite and act now. Your business depends on it.

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

TRAVEL TOURISM IN TUCSON

Tucson Originals restaurants show local flavor and appeal The Tucson Originals have done much to raise public awareness on the importance of supporting locally owned businesses and has attracted its fair share of visitor attention as well. Established in 1999, the Tucson Originals restaurant group was founded by a small group of local restaurateurs looking for a way to retain their market share in the face of the ever-growing population of chain restaurants coming into the Tucson market. Today, the Tucson Originals is an enthusiastic group of restaurateurs and chefs representing 49 unique restaurants from white tablecloth and upscale casual, to sandwich shops, pizza parlors and more. Many of its members have moved to Tucson from all over the United States bringing with them their culinary traditions and expertise. Here they have discovered what a rare place Tucson is - where culinary diversity is a daily celebration. While still a close-knit community, Tucson welcomes new ideas and dining experiences and the Tucson Originals exemplifies this unique culture.

With ongoing advertising campaigns, seasonal promotions and participation in countless community non-profit events, the Originals has COLETTE LANDEEN helped keep the Tucson culinary community vibrant and alive, even through hard economic times. Our community supports one another - no matter how big Tucson becomes, the independent business core remains strong. Groups such as the Tucson Originals, Local First, and others work hard to preserve Tucson’s sense of place. As local chefs and owners of many of the area’s best restaurants, the members of the Tucson Originals believe it is also important to cultivate our community’s cultural diversity. Locally owned independent restaurants create the soul of Tucson’s

culinary heritage. The idea that you can travel to a destination like Tucson and have a culinary experience that’s second to none, all at a local establishment is one of the things that draws visitors from around the globe. The members of the Tucson Originals have a long history of supporting local charities. In 2003, along with the support of the Metropolitan Tucson Convention and Visitors Bureau, the Tucson Originals founded its annual signature event, the Tucson Culinary Festival. The event would create an opportunity for the public to meet all the members, enjoy tastes of their offerings paired with wines, spirits, local brews, and celebrate the culinary traditions of the southwest. Over the years, the festival has gained both regional and national media attention and attendance by visitors from all over the country. Where in the past, the festival has taken place over a three-day weekend; the 2012 Festival features three separate events on

different dates. The first of these events the Reserve and Grand Tasting took place last weekend at Casino Del Sol Resort but there’s more to come. The World Margarita Championship will take place from 6-9 p.m. Oct. 26 at the Tucson Museum of Art, 140 N. Main Ave. Tickets can be purchased in advance for $45 each online — www.tucsonoriginals. com/culinary-festival/ — or at the door for $60 each. The Copper Chef Challenge will take place in spring. Beneficiaries of this month’s events include Tucson Values Teachers and the Tucson Hispanic Chamber Foundation. Whether you’re a visitor or a lifelong resident, plan your next great food adventure at visittucson.org/culinary.

Contact Colette Landeen, executive director of Tucson Originals, at tucsonoriginals@gmail.com. She is also a member of the Metropolitan Tucson Convention and Visitors Bureau, which prepares this monthly column.

InsideTucsonBusiness.com

OCTOBER 12, 2012

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PROFILE Being local and adapting, Title Security Agency of Arizona celebrates 40 years By Kaity Sitzman Inside Tucson Business

and 240 employees statewide; 140 of them are in Tucson. While Tom Sullivan Sr. has passed the If some huge companies can’t stay prof- day-to-day responsibilities to his son, he itable in today’s economic setting, what is to stays involved as chairman of the board. be expected from the little guys? People tryTom Sullivan Jr., president since 1998, ing to start their own businesses are mod- grew up in the family business. He was in ern day David and Goliath first grade when he moved to stories, but often without the Tucson and growing up, he same ending. worked in every department Having run a successful before becoming president. business for 40 years is a reHe attributes many busimarkable feat especially in ness tactics to their success today’s economy. Being in over the years. First on the business for that long also list are their loyal employmeans they have seen a lot. ees. The time period from the “It’s not about me or my 1970s to 2012 has come with dad. The employees are the more changes than most ones who really make this people would have predictcompany what it is today,” ed. said Tom Sullivan Jr. In 1972, Thomas Sullivan Tom Sullivan Sr. The company takes pride Sr. was living in Colorado in finding the right people and working at a title company when he to work for them and then keeping them decided he wanted start his own business. there. The core employees have been with That’s when he moved his family to Tucson the company for over 10 years. Multiple emand started the Title Security Agency of Ari- ployees have been there for 20-plus years zona. and some have been there for 30. His first office was at Broadway and He believes that treating employees right Swan and had just nine employees. This and reinvesting in the company is the best was a time before laptops and children run- way to preserve them. ning around with the latest cell phones. If “Investing in your company allows for the employees wanted a copy of something, constant improvement,” and new technolthey used carbon paper. They had a typist ogy gives employees the tools to be successwho keyed every document by hand. ful, he explained. “It’s important to continuAs was popular in the 1970s, the of- ally give them opportunities to develop their fice was outfitted with red shag carpet and skills and ideas.” cream-color walls. Compared to the offices Like other businesses, Title Security Title Security currently occupies on the east Agency of Arizona has adjusted through to side, it puts into perspective how long the the changes, especially in an industry full of company has been in business and adjusted large players. to change. “Thankfully, we had created a lot of reToday, Title Security has 14 locations tained earnings so we could make it. We

BIZ FACTS

Title Security Agency of Arizona Main ofﬁce: 6390 E. Tanque Verde Rd. Title department: 7330 N. Oracle Rd. 17 regional ofﬁces http://titlesecurity.com (520) 885-1600 kept the core together and continued our commitment to serve our customers,” said Tom Sullivan Jr. Looking ahead, “We hope to see a recovery in the future, but we want to be ready even if it doesn’t,” he said. That attitude is key for anyone in a highly regulated business. Many rules that confine the ways in which business can be done, but even with restrictions, they continue to be

innovative. “Our company is in a box because of all the regulations we have to follow but we haven’t defined how large that box can get,” said Sullivan. Their services include title and escrow services, trustee sales, lender services and much more. They also host educational classes for realtors as a way to stay involved in the business community. Title Security Agency of Arizona takes pride in the fact that it is locally owned. National companies make decisions based on real estate conditions across the country, but a local company can focus on Arizona specifically. Further, with so many locations, each office can serve its own customers based on that area’s needs. “From the beginning, (Tom Sr.) wanted the business to be successful, but at that time I don’t think he imagined us being where we are today,” said Tom Sullivan Jr.

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Names in news activity to report this week. Concetta Callahan is due to arrive in Tucson next week as co-anchor of KMSB 11’s “Daybreak” from 7-9 a.m. weekdays. Callahan also will report during the 4:30-7 a.m. news on KOLD 13, as part of the two stations’ shared services agreement. She fills the vacancy created when Gina Trunzo left in May for medical reasons. Callahan comes to Tucson from Rock Island, Ill., where she was the weekend news anchor for CBS serving the Quad Cities market of Rock Island and Moline, Ill., and Davenport and Bettendorf, Iowa, A native of Houston, she also worked in Laredo, Texas. Also on the morning news front, Steve Nuñez is out after just one year as co-anchor of KGUN 9’s “Good Morning Tucson.” And he’s gone from the station. Nuñez couldn’t be reached for comment and station officials weren’t talking other than to confirm the parting of ways. News Director Forrest Carr told the trade publication TV Spy, “We wish him the very best of luck.” The word from staffers is that station officials wanted to reassign Nuñez to a reporter position with no change in pay. But after he took to Facebook — saying among other things, “I gave it My BEST. And, while it wasn’t good enough for our viewers, it was GOOD enough for ME, Camila and my family! I lost my job” — he was told the reassignment offer was no longer on the table and he was out. Peter Michaels, who was news director and executive producer for Arizona Public Media the past 8½ years, is the new communications director for the National Institute for Civil Discourse. It makes for a completed circle for Michaels. The institute, which is part of the University of Arizona, was formed in the aftermath of the Jan. 8, 2011 shootings at a constituent event being held by then U.S. Rep. Gabrielle Giffords that left six people and 13 others, including Giffords, injured. Through happenstances, Michaels’ wife was at the shopping center where the shootings took place and as a result, his reports on NPR were among the first national accounts of the event. Michaels’ career of more than 30 years included stops at NPR in Washington, D.C., and NBC in New York prior to coming to Tucson. Another departure from Arizona Public Media, Wendy Erica Werden is the new director of community outreach for U.S. Rep. Ron Barber’s office. It’s the job Gabe Zimmermann had with Giffords’ before he was killed in the Jan. 8 shooting. Werden had director of marketing and brand management

for Arizona Public Media for about 4½ years.

Political debates Ron Barber and Martha McSally will appear before a panel of reporters in a live forum at 6 p.m. Oct. 23 that will be broadcast live on KUAT-TV 6, KUAZ 89.1-FM and online at www.azpm.org. The one-hour forum will take place in the Grand Ballroom of the Student Union Memorial Center on the University of Arizona campus. The media panelists will be reporters Christopher Conover and Andrea Kelly from Arizona Public Media, Jim Nintzel from the Tucson Weekly and Katy Murray, president of the Associated Students of UA, which is hosting the event. It is one of only two public debate situations for the Congressional District 2 candidates. Next week, Barber, a Democrat, and McSally, a Republican, are scheduled to appear in a debate at 6 p.m. Oct. 17 at Buena High School Performing Arts Center in Sierra Vista. Meanwhile, the candidates in Congressional District 2, which extends from the northernmost portion of Pima County through the White Mountains up to Flagstaff, will appear in another forum to be broadcast at 6 p.m. Oct. 24 on Arizona Public Media’s TV, radio and online outlets.

Loose ends tied It appears Google has fixed its algorithm for news searches on the word “Tucson” so that Tucson News Now aren’t the only results. In fact, in a search on Wednesday this week the newsroom for KOLD 13 and KMSB 11 wasn’t the source of a single news story on one of the first 10 pages. Despite that, the search still doesn’t necessarily produce news of or about Tucson, which is presumably what one would want with that as a key word. Page 1 of the results included only Tucson-based news stories but there in the middle of page 2 were stories about Jerry Sandusky, the former Penn State football coach being sentenced, and Lady Gaga thowing up on stage, both of which were reported by Tucson news media but have nothing to do with Tucson. You might recall Alex Miranda, former co-host of KGUN 9’s “The Morning Blend,” was the host of a CBS network reality relationship show called “3” that premiered in July but didn’t even last as long as the show’s title. If per chance those two episodes had you hooked, CBS has made the rest available as an “online exclusive” at www.cbs.com/shows/3/ .

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

InsideTucsonBusiness.com

OCTOBER 12, 2012

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

It’s fall, time to celebrate the grape harvest and wine

‘Daily Show’s Indecision Tour makes a stop at UA next week

Just outside Willcox, between the Chiricahua and Dragoon mountains at an elevation of 4,300 feet, you’ll find the 12-acre Sand-Reckoner Vineyards. Owners Rob and Sarah Hammelman have just introduced a new wine club where members can have first dibs on their small production wines through two shipments per year. In addition to first-in-line status for newly released wines, club members will receive detailed tasting and vintage notes and invitations to members-only wine events. Wine Club X offers a 15 percent discount on wines and includes six bottles per shipment — the November shipment will be two bottles each of the 2010 vintages of “5” Sangiovese Grosso Syrah, “7” Syrah and “11” Zinfandel Fortified Dessert Wine. The dessert wine is in 500 milliliter bottles, the others are in standard 750 ml. bottles. The six bottles for November are priced at $204 (plus tax, shipping and handling). There is the option of arranging to pick up the shipments at the vineyard. The vineyard, which was planted in 1997, was purchased by the Hammelmans in 2010. Rob Hammelman’s interest in Arizona wines dates back to 2000 when he, then a teacher, worked during the summer for Callaghan Vineyards near Elgin. He later earned a graduate diploma in Oenology from the University of Adelaide

in South Australia where he also worked in vineyards. His wine experiences have also taken him to Colorado, where he met Sarah, and France. A native of Colorado, Sarah MICHAEL LURIA has worked the harvest in California and traveled with Rob to France. The name Sand-Reckoner, means “sandcalculator,” which the Hammelmans say references Archimedes’ third century B.C. writing in which he calculates the size of the universe by figuring the number of grains of sand that will fill it and also alludes to the sandy loam soils of the vineyard and “the infinite calculations required to create a true wine that expresses the very sand into which our vines’ roots grow deep.” To join the wine club, either phone the winery or send an email to Sarah at sarah@ sand-reckoner.com . The winery is open by appointment. • Sand-Reckoner Vineyards, 130 S. Haskell Ave., Willcox — www.sand-reckoner.com/ — (303) 931-8472

NANCY YOUNG

WRIGHT

Just in time for the election hoopla, UApresents is bringing in “The Daily Show Live: Indecision Tour 2012” at 8 p.m. Oct. 19 in Centennial Hall, 1020 E. University Blvd. on campus. The show features two regular correspondents from “The Daily Show,” Al Madrigal and Kristen Schaal, along with Adam Lowitt, two-time Emmy Award-winning supervising producer of the Comedy Central show. The multimedia performance includes a question-and-answer session and a recorded video welcome from Jon Stewart (who isn’t part of the onstage cast). Ticket prices range from $20 to $50.

Art The third annual Santa Muerte Music and Arts Festival continues through Nov. 4 at the Sacred Machine Museum, 245 E. Congress St., Suite 123. Founded in 2010, Sacred Machine is a museum and curiosity shop for the creations of Tucson artist and musician Daniel Martin Diaz, and wife and co-founder of their band Blind Divine, Paula Catherine Valencia. The festival celebrates the folklore of the Southwest with events, exhibits and performances. Performances on Saturday (Oct. 13) feature Philip Shiozaki, who creates music using experimental guitar tunings while looping and layering atmospheric sounds,

HERB STRATFORD

Theater

The University of Arizona School of Theatre, Film and Television’s second show of the season, “Avenue Q” continues through Oct. 28 at Maroney Theatre, 1025 N. Olive Road on campus. The show is billed as a “Sesame Street”-like satire that uses actors with puppets who explore the young adulthood of a college graduate after he moves into his first apartment. Risqué themes including racism and sexuality and profanity are included. Tickets range from $20 to $31. The curtain goes up at 7:30 p.m. Fridays and Saturdays and 1:30 p.m. and next week, there’s also a performance at 7:30 p.m. Oct. 18.

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

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Prop. 117 seeks to limit property valuation hikes for taxes By Melanie Yamaguchi Cronkite News Service Placing a 5 percent annual limit on how much the assessed value of properties can rise would shield owners from the kinds of spikes seen during the real estate bubble of the last decade, say supporters of Proposition 117. Kevin McCarthy, president of the Arizona Tax Research Association, which is leading the campaign for the measure on the Nov. 6 ballot, said many homeowners suffered as property values surged but property tax rates didn’t necessarily adjust. “It’s going to slow down the surges in property tax revenue that are associated with the market swings,” said McCarthy, whose group advocates for government efficiency. However, Lea Marquez-Peterson, president and CEO of the Tucson Hispanic Chamber of Commerce, said Proposition 117 could interfere with Tucson’s ability to provide core services. “We feel that tax reform is needed,” Peterson said. “If this is something that would impede our local government in doing their

job, this wasn’t the answer.” Lynne Weaver, a Phoenix resident leading an effort to limit property taxes much like California’s Proposition 13, said Proposition 117 wouldn’t do anything to prevent taxing districts from raising tax rates. “Prop. 117 does nothing but add more distortion to the system, and it does nothing to limit your property tax bill,” Weaver said. Weaver’s plan, which she hopes to get on the 2014 ballot, would roll back property values to what they were in 2003, cap the tax rate at 0.5 percent on residential property and 1 percent for all other real property. It would limit valuation increases to 2 percent a year. Supporters of Proposition 117 argue that it would simplify Arizona’s property tax valuation system, one of the most complicated in the nation. Since 1980, property owners have been assessed on two taxable values: the full cash value — or market value — and limited property value — or secondary value. Full cash value is used to compute secondary taxes ranging from bonds to special districts for services such as fire and flood control. Limited property value is used to

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compute taxes for maintenance and operation of school districts, cities and counties. The limited property value can grow by 10 percent each year and, during a real estate boom, every three years by 25 percent of the difference between the two values. The problem, McCarthy said, is that the full cash value has no limitation on how much values can grow each year. McCarthy said Proposition 117 would simplify the system by creating a single valuation that would increase by no more than 5 percent annually. “It’s going to provide a level of certainty that currently doesn’t exist,” he said. McCarthy said the change would help local governments as well. “They also will have a better idea of what they can expect from the property tax system and what the growth trend will be for capital improvement plans that they will put together to sell general obligation bonds that are paid off with the property taxes,” he said. Yuma County Assessor Joe Wehrle, who supports Proposition 117, said that while the measure doesn’t limit the ability of taxing authorities to raise levies it would make

property tax bills more predictable. “In the grand scheme of things, this proposal is not going to change a lot as far as different tax authorities and the ability to tax or the amount of money they’re going to get,” he said. “It’s just going to simplify the calculation formulas.” A group called Yes on 117 registered with the Arizona Secretary of State’s Office received $54,500 in contributions, including $27,000 from the National Association of Industrial and Office Properties Arizona Chapter and $20,000 from the Arizona Tax Research Association. A group called Truth & Concerns on Prop. 117 registered with the Secretary of State’s Office but had filed no financial reports. Edward Perkins, a policy analyst for Arizona State University’s Morrison Institute for Public Policy, said the crux of the Proposition 117 debate is whether or not it would lower property taxes. He said he wasn’t so sure it would because taxing districts could still raise tax rates. “If people did their homework on this, this probably won’t change things a great deal in terms of property tax bills, but they may perceive it to,” Perkins said.

InsideTucsonBusiness.com

OCTOBER 12, 2012

NEWS

Prop 116 supporters say lower taxes would spur hiring Easing property taxes businesses pay on capital items for everything from milling machines to restaurant silverware would help create jobs across Arizona, say supporters of Proposition 116 on the Nov. 6 ballot. Under current Arizona law, equipment or machinery owned by businesses is subject to an annual property tax, with the first $68,079 of value exempt. If voters approve Proposition 116, the exemption for items acquired Jan. 1, 2013, would rise to an amount equal to the annual earnings of 50 workers in the state – which for the 2013 tax year is estimated at $2.4 million. “It would serve as a great signal that Arizona is open for business,” said Farrell Quinlan, Arizona director of the National Federation of Independent Business, which pressed for the Legislature to refer the measure to the ballot. “What kind of business does it impact? It’s manufacturing,” Quinlan said. “And that’s the kind of business we want here. It keeps us in the global economy.” A group registered with the Secretary of State’s Office as Vote Yes on 116 had raised $28,150 through Sept. 17, with $20,000 of that from the National Federation of Independent Business. Doug Click, chairman of Vote Yes on 116, is president of Arizona Hi-Lift, a Phoenix firm that sells and rents machinery and equipment. He said a lot of out-of-state businesses looking to expand have turned elsewhere because states including Colorado, California and Texas don’t have this tax. The higher tax exemption would put Arizona in a better position to compete, Click said. “What’s good for other businesses is good for my business,” Click said. “It’s a big circle and right now the circle’s kind of small.” There is no organized opposition to Proposition 116. Bryon Schlomach, director of the Center for Economic Prosperity at the Goldwater Institute, an independent watchdog group that promotes limited government and free enterprise, said the change would help Arizona become more of a small business incubator. “That’s ultimately where we generate our standard of living, our prosperity,” Schlomach said. Garrick Taylor, spokesman for the Arizona Chamber of Commerce and Industry, said Proposition 116 wouldn’t jolt the tax system. “It’s just a move that makes sense to strengthen the state’s economy,” he said. “If you ask any voter what the No. 1 issue is, jobs and the economy keep popping up.”

A report by the Joint Legislative Budget Committee estimated the cost to homeowners of making up for revenue lost under Proposition 116 would be negligible, using as an example, a home valued at $114,000 in the Mesa school district, which would pay $3.25 more in taxes in 2015. Edward Perkins, an analyst with Arizona State University’s Morrison Institute for Public Policy, said the legislation behind

Proposition 116, which passed unanimously, was a “rare display of bipartisanship”. “The hope is it will create more jobs,” Perkins said. “‘What’s not to like?’ That’s been the bottom line.”

Sarah Pringle, Cronkite News Service

By Sarah Pringle Cronkite News Service

Doug Click, president of Arizona Hi-Lift, is chairman of Vote Yes on 116.

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18 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

Arizona posts sharp improvement in energy efficiency policies WASHINGTON â&#x20AC;&#x201D; Arizona ranks 12th in the nation for its energy-efficiency policies, putting it among the most-improved states in the U.S. over the last year, according to a report by the American Council for an Energy-Efficient Economy. Arizona moved up from No. 17 last year largely because the state is starting to see results from aggressive energy-efficiency standards it adopted in 2010. Thatâ&#x20AC;&#x2122;s when the Arizona Corporation Commission set a goal of a 22 percent reduction in energy consumption by 2020 from the utilities it oversees in the state. â&#x20AC;&#x153;Arizonaâ&#x20AC;&#x2122;s goals are among the highest in the country,â&#x20AC;? said Jeff Schlegel, Arizona representative for the Colorado-based Southwest Energy Efficiency Project. â&#x20AC;&#x153;The strongest, most ambitious goal in the country is to save 2.5 percent every yearâ&#x20AC;? and Arizonaâ&#x20AC;&#x2122;s goal is not much less than that, he said. Arizonaâ&#x20AC;&#x2122;s 22 percent goal is cumulative and averages to savings of just over 2 percent a year, said Schlegel. He noted that most states donâ&#x20AC;&#x2122;t have any goals and those that do often set only an annual goal and

American Council for an Energy-Efficient Economy

By Cale Ottens Cronkite News Service

Arizona is ranked No. 12 among states for energy efficiency. The other states and the District of Columbia were ranked from No. 1 Massachusetts to No. 51 Mississippi.

not a 10-year goal. The 2012 State Energy Efficiency Scorecard ranks states on a maximum of 50 points over six categories: utility and public benefits programs and policies, transportation policies, building energy codes, combined heat and power, state government initiatives, and appliance efficiency standards.

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Arizonaâ&#x20AC;&#x2122;s lowest score â&#x20AC;&#x201D; two points out of a possible nine â&#x20AC;&#x201D; came for its transportation policies. That category rated each state on whether it had legislation encouraging transit investment by state or local governments. The stateâ&#x20AC;&#x2122;s best showing was for utility and public benefits programs and policies, under which the corporation commissionâ&#x20AC;&#x2122;s energy efficiency standards fall. Corporation commission spokeswoman Rebecca Wilder said the agency requires each utility it oversees, including Tucson Electric Power and Arizona Public Service, to ensure they meet the standards through such programs as customer rebates and incentives to reduce energy use. â&#x20AC;&#x153;These programs were developed to help us meet the energy efficiency resource standard set by the Arizona Corporation Commission,â&#x20AC;? he said.

Schlegel said the ultimate goal is to lower consumersâ&#x20AC;&#x2122; electricity bills, save water, reduce pollution and create jobs. â&#x20AC;&#x153;It really adds up over time and becomes a really great resource for the future of Arizona,â&#x20AC;? he said. The report was welcomed by Gov. Jan Brewerâ&#x20AC;&#x2122;s office, which said in a written statement that it reflects the fact that â&#x20AC;&#x153;state government, working with local utilities, made a significant difference in reducing energy costs for Arizona residents, businesses, school districts and local governments.â&#x20AC;? The statement also noted that research being done at the stateâ&#x20AC;&#x2122;s universities could â&#x20AC;&#x153;pave the way to help us save even more in the future.â&#x20AC;? â&#x20AC;&#x153;The energy news for Arizona keeps getting better and better,â&#x20AC;? Brewer said in her statement.

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OCTOBER 12, 2012

BRIEFS GET ON THE LIST

Next up: Womenowned businesses Inside Tucson Business is coming up on the finals months 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: • Oct. 19: Alarm system companies, Security firms, Insurance agencies and brokers, Property casualty insurance • Oct. 26: Women-owned businesses • Nov. 2: Chambers of commerce, Business and trade organizations • Nov. 9: Telephone service providers, Telecommunications equipment providers, Teleservices firms • Nov. 16: Tourist attractions in Southern Arizona If your business fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness. com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

ECONOMIC DEVELOPMENT

‘Radical centrist’ to keynote TREO luncheon Matthew Miller, a columnist for the Washington Post and author of “The Tyranny of Dead Ideas: Revolutionary Thinking for a New Age of Prosperity,” will be the keynote speaker at this year’s annual economic update put on by Tucson Regional Economic Opportunities (TREO). Miller calls himself a “radical centrist” and will speak about the crossroads of America – what comes after our economic crisis and what it will take to get out of political gridlock, renew the country and accelerate our economic recovery. Besides his writing, Miller is a regular contributor on MSNBC and CNBC, a Senior Fellow at the Center for American Progress and a consultant to corporations, governments and nonprofits. The TREO event will be from 11:30 a.m. to 1:30 p.m. Nov. 1 at Casino Del Sol Resort, Spa and Confrence Center, 5655 W. Valencia Road. Tickets are $70 each for TREO investors, $85 for non-investors with tables of 10 available for $700 for investors and $850 for non-investors. For registration information, contact Chance Agrella at TREO, by email at chance. agrella@treoaz.org or (520) 243-1917. The deadline to register is Oct. 26.

Rotary Club panel to cover regional economy The Rotary Club of Tucson plans a discussion panel on the regional economy. “The Future of the Tucson Economy,” is planned for the club’s Oct. 31 meeting at noon at the Doubletree Hotel at Reid Park, 445 S. Alvernon Way. Panel members include Pima County Administrator Chuck Huckelberry, Tucson Mayor Jonathan Rothschild, Tucson Chamber CEO Michael Varney and TREO President Joe Snell. Contact Alan Schrope at aschrope@tucsonvah.com or (520) 308-3439 for information.

UTILITIES/ENERGY

Tucson Electric Power introduces new logo Tucson Electric Power (TEP) has “grounded” the lightning bolt on its logo. This week, company officials unveiled a new logo “to update the visual element that represents Tucson Electric Power,” said Paul Bonavia, chairman and CEO of TEP and parent company UNS Energy. “The new logo was inspired by our commitment to safe and reliable service, combined with our ongoing initiatives for building a bright tomorrow for our community.” The new logo features a sunny-colored arc designed to resemble the new logo for UNS Energy. A few TEP field vehicles have been re-imaged and the new logo will begin appearing on customer bills by January. The previous logo featured a white lightning bolt with the words Tucson Electric Power in white on a dark blue background.

BIOSCIENCES

UA Bio Park formally dedicated in ceremonies Now that the infrastructure improvements are in, the University of Arizona’s Bio Park was formally dedicated Thursday (Oct. 11). The ceremony included a tree-planting ceremony and the dedication of the Las Artes “Bio Wall” along the Pathway to Discovery. Among the dignitaries on hand was Matthew Erskin, acting assistant secretary for the U.S. Department of Commerce, Economic Development Administration, along with new UA President Ann Weaver Hart. The Bio Park, north of Interstate 10 off Kino Parkway, received a $4.7 million grant in federal stimulus money from the U.S.

Department of Commerce, Economic Development Administration for development of the infrastructure. It was the largest grant awarded by agency for a research park. The money was used to pay for roads, water systems, utilities and perimeter landscaping. The 65-acre Bio Park campus is part of a larger 350-acre planned community called the Bridges, which includes residential and retail establishments.

LEGAL

DPS finds $300K in stolen copper at Marana ranch Officers with the Arizona Department of Public Safety (DPS), Southern Commercial Vehicle Enforcement Unit, recovered more than $300,000 worth of stolen copper at a house in Marana on Sept. 27. No arrests have been in the case, but a representative with DPS said several suspects have been identified. The property, at 6320 W. Tangerine Road, is a ranch parcel on state trust land rented from the Arizona Land Department. DPS officers executed a search warrant at the property where they recovered 54 copper ingots weighing nearly 900 pounds each. The copper was determined to have been stolen from the Asarco Mining Corporation’s mine in Hayden. Authorities also seized three truck tractors, three semi-trailers, one fork lift and two hand carts. DPS said the investigation is ongoing and anticipates making several arrests soon. The theft was likely not an isolated incident, a DPS representative said.

ENTERTAINMENT/SPORTS

Troon to manage golf club at Casino Del Sol Resort The Pascua Yaqui Tribe has picked Troon, based in Scottsdale, to manage its new golf club due to open up next year at the Casino Del Sol Resort, 5655 W. Valencia Road. The new golf course, named Sewailo Golf Club, is the seventh Native American tribe-owned property in Troon’s management portfolio. The others includ Whirlwind Golf Club at Wild Horse Pass in Chandler; Southern Dunes Golf Club in Maricopa; and Talking Stick Golf Club in Scottsdale. Sewailo, which means “flower world” in the Yaqui language, broke ground this year and is being designed as a desert oasis in order to reflect its given name. The championship-style course is designed by California-based golf architect Ty Butler and golfer Notah Begay III, a New Mexico native and the only fullblooded Native American to ever compete on the PGA Tour. An injury ended his professional golfing career in 2001. “Championship-style golf combined

with the spectacular amenities at Casino Del Sol Resort brings us closer to realizing our vision of creating a world-class destination in Southern Arizona and Troon will ensure this venture is a success,” Peter S. Yucupicio, chairman of the Pascua Yaqui Tribal Council, said in a statement.

COMMERCIAL REAL ESTATE

Villas at Shannon Ridge back in foreclosure The Villas at Shannon Ridge, a planned condominium project near the Omni Tucson National Golf Resort, is back in default on a portion of the development. In 2010, a notice of trustee’s sale was filed on the 37-acre site regarding a $55 million revolving loan. Now two years later, unresolved financial issues have resulted in another foreclosure filing for a modified amount of $10 million. According to public records, the new filing involves two vacant land parcels at the development, located at north Shannon Road and west Club Drive. The site’s owner is Shannon Partners LLC, in care of Chicago-based Related Midwest LLC. Related Midwest is affiliated with New York development giant Related Cos. The beneficiary is Cole Taylor Bank, Burbank, Ill. The public auction has now been scheduled for 10 a.m., Dec. 31 at the law office of Quarles & Brady, 1 S. Church Ave., Suite 1700.

POLITICS

Realtors want re-election of incumbent supervisors The Tucson Association of Realtors has endorsed the re-election of two more incumbents to the Pima County Board of Supervisors. The association won’t do an endorsement in the one race where there is no incumbent, according to Laura Kruszewski, marketing manager of the association. The Realtors are endorsing the re-election of Sharon Bronson and Richard Elías in the Nov. 6 general election. The group had previously endorsed Ramón Valadez and Ray Carroll before the primary election. In announcing the endorsements, Realtors CEO Philip Tedesco cited Elías’ “deep roots and an understanding of the challenges facing our industry” and Bronson’s “breadth of knowledge” for “regional cooperation.” Both Bronson and Elías are Democrats. Bronson is facing a challenge from Republican Tanner Bell and Elías is being challenged by Republican Fernando Gonzales.

20 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

CALENDAR 7360 N. Oracle Road Info and RSVP: (520) 744-5927

SPECIAL EVENTS

REGULAR MEETINGS

Tucson Meet Yourself Folklife Festival Friday (Oct. 12) through Sunday (Oct. 14) 11 a.m. to 10 p.m. Friday and Saturday 11 a.m. to 6 p.m. Sunday Downtown Tucson 7 sites spanning 60 acres off Church Avenue Contact: Echo Surina echo@tucsonmeetyourself. org or (602) 332-9445 www.tucsonmeetyourself.org

Desert Stars Toastmasters Every Tuesday, noon U of A Science & Tech Park Building 9040, Room 2216 Contact: Jim Eng (520) 6639118 or jim_eng@juno.com Information: www.Desertstars. freetoasthost.com

8th Annual Tucson Record Show Sunday (Nov. 11) 9 a.m. to 3 p.m. Las Cazuelitas Event Center 1365 W. Grant Road Contact: Bruce Smith cassidycollectibles@earthlink. net or (520) 622-0104 Cost: $4 Dealers from all over the Southwest will be selling vinyl, tapes, CDs and music memoribilia. Dealer tables are $35.

Entrepreneurial Mothers Association Monthly luncheon First Thursday 11:30 a.m. to 1 p.m. Old Pueblo Grill 60 N. Alvernon Way Information: Sherry Goncharsky, sherry@ tucsoncomputerskills.com

The Foothills Club of Tucson Second Friday 12:30 to 2:30pm Hacienda Del Sol 5501 N. Hacienda Del Sol Rd Contact: Leslie Hargrove (520) 445-9237 www.foothillscluboftucson.com

Financial Workshops for Women Every Tuesday at 6 p.m. Barca Financial Group 5470 E. Speedway Suite A106 Information: www. barcaﬁnancial.com Foothills Optimist Club First and third Wednesdays, noon Macayo’s Restaurant

Foothills Rotary Club First and Third Fridays Noon Michelaneglo’s 420 W. Magee Road Lunch Optional Info: (520) 909-9375

Fountain Flyers Toastmasters Every Tuesday 6:30 a.m. Coco’s Restaurant 7250 N. Oracle Road Information: Cheryl at (520) 730-4456 Cost: Free to visit Got a business challenge, 30 minutes & 20 bucks? Every Tuesday and Thursday 8 to 9 a.m. Savaya Coffee Market

5530 E Broadway Ste.174 Info: Dale Bruder, Dynamic Strategist strategy@ dalebruder.com (520) 331-1956 www.dalebruder.com $20

Inside Connections Second and fourth Wednesday, 7:15 a.m. Home Town Buffet 5101 N Oracle Road RSVP: Eric Miller at (520) 979-1696

Group Referral Organization networking group First and third Wednesdays Luna Bella 2990 N. Swan Road Suite 145 Information: www. grotucson.com

Institute of Management Accountants Third Thursday, (September through May) 6:30 p.m. to 8 p.m. Old Pueblo Grille 60 N. Alvernon Way RSVP: Gale McGuire (520) 584-3480 or gale. mcguire@roberthalf.com

GRO II Second and fourth Thursdays Sam Hughes Championship Dining 446 N. Campbell Ave. Suite 150 Info: www.grotucson.com Independent Business Networking Tucson “IBNT” Second and fourth Tuesdays El Parador 2744 E. Broadway RSVP: Jennifer Row at (520) 603-3315 or jenniferrr@ novahomeloans.com Cost: First time is free

International Association of Administrative Professionals San Xavier Chapter monthly dinner & professional development meeting Every third Wednesday, 5:30 to 8 p.m. Sheraton Four Points Hotel 1900 E. Speedway RSVP: Kay at franklin@ dakotacom.net or (520) 883-1819 Cost: $18 members, $20 nonmembers, includes dinner

“Real Estate Investment Plan” Keller Williams Southern Arizona 1745 E. River Road, Ste. 245 Third Tuesday 6 p.m. Workshop for individuals considering investment RSVP by noon Mondays (520) 909-9375 Kiwanis Club of Oro Valley Wednesdays, 7 a.m. Holiday Inn Express 10150 N. Oracle Road Info: jepsenaz@comcast.net Cost: $8 LeTip Midtown Every Tuesday, 7:01 to 8:31 a.m. El Parador Restaurant 2744 E. Broadway RSVP: (520) 296-9900 Cost: $10 LeTip Tucson Executives Chapter meeting Every Tuesday, 11:30 a.m. to 1 p.m. Macayo’s Mexican Kitchen 7360 N. Oracle Road RSVP: (520) 299-9600, bwmartin@cox.net

PEOPLE IN ACTION

ABBAS RANA

NEW HIRES Tanque Verde Ranch has hired Jim Bankson as general manager. In his role at the property, Bankson will be responsible for day-to-day operations, marketing and sales, guest services and managing other activities. Bankson has decades of experience in the management of luxury resort operations. Most recently, Bankson operated as general manager of Colter Bay Village, a multi-faceted resort concession within the Grand Teton National Park. Dr. Abbas Rana, assistant professor, has joined the comprehensive abdominal transplant program at the University of Arizona Department

GARY VERCRUYSSE

of Surgery. Rana also has expertise in liver transplants and surgeries for malignant and non-malignant conditions that affect the liver, gallbladder, bile ducts, pancreas and duodenum. As a member of the HepatoPancreaticoBiliary (HPB) Center team, he provides the latest treatments for tumors, inflammation, congenital abnormalities and traumatic injuries of the liver and pancreas. A graduate from the University of Pittsburgh School of Medicine, Rana completed residency training in general surgery at Columbia University in New York City, and fellowship training in transplantation at the University of California – Los Angeles. Rana has published

ANCA BEC

more than 30 research articles and abstracts. Dr. Gary A. Vercruysse has joined the University of Arizona Department of Surgery Division of Trauma, Critical Care and Emergency Surgery as associate professor of surgery. In addition to treating trauma patients, he will serve as medical director of the burn-care program at The University of Arizona Medical Center. He comes to the UA from Grady Memorial Hospital in Atlanta, where he was co-director of the Grady Memorial Burn Center and assistant professor at Emory University. He also served as chief of surgery at the U.S. Air Force Theater Hospital in Balad, Iraq, and as senior surgeon and director at the

KATE MAYNARD

SUSAN BOSWELL

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print. Craig Joint Theater Hospital in Bagram, Afghanistan. Vercruysse received a medical degree and general surgery residency training from Michigan State University College of Human Medicine in East Lansing. He completed a trauma and surgical critical care and trauma surgery fellowship at the R. Adams Cowley Shock Trauma Center at the University of Maryland School of Medicine, Baltimore, and

a burn-care fellowship with Emory University at Grady Memorial Hospital. Alliance Bank of Arizona has announced that Anca Bec has joined the bank as vice president sales officer of its treasury management group. Bec has more than 10 years of experience in banking positions and working with business clients. Bec is active in Arizona Women Education and Employment (AWEE)

and holds a B.A degree in finance/economics from Binghamton University, State University of New York. The Bureau of Land Management (BLM) Tucson Field Office has hired Claire Crow as manager of the Ironwood Forest National Monument and Karen Simms as assistant field manager. Crow comes to Arizona from Zion National Park in Utah, where she has worked for 14 years. Crow started there as a wildlife intern, then worked in fire management, monitoring fire effects on vegetation. She also did research at Zion for the University of NevadaLas Vegas and Hawk Watch International. Crow has a master’s of science in wildlife conservation from

CRAIG KAUFMAN

the University of Arizona. Simms has been the ecosystem planner for the BLM’s Las Cienegas National Conservation Area (NCA) for the past nine years. She has worked on the Las Cienegas NCA and in the Cienega watershed for nearly 25 years as a wildlife biologist and land use planner. Simms has a master’s of science in wildlife biology from the University of Arizona. PROMOTIONS Alliance Bank of Arizona has announced that Kate Maynard has been promoted to vice president, sales manager of its treasury management group. Maynard began her banking career in Arizona and is a member of the Hon Kachina

JAMES MARROW

Board of Directors and AFPA. She holds a bachelor of arts degree from the University of Alabama. AWARDS The national law firm of Quarles & Brady LLP announced that three attorneys in its Tucson office have been selected by their peers as “Lawyers of the Year” in The Best Lawyers in America 2013. The Tucsonbased Quarles & Brady attorneys, named in their respective practice areas, are: Susan G. Boswell, bankruptcy; Craig H. Kaufman, bet-the-company litigation; and James F. Morrow, real estate law.

InsideTucsonBusiness.com

OCTOBER 12, 2012

22 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Choosing the right retirement plan for your employees If you own a business, you understand the importance of attracting and retaining good employees. An appealing benefits package will do that and a key component is a retirement plan. There are many options — IRA-based, Defined Contribution and Defined Benefit plans. A Simplified Employee Pension IRA plan (SEP IRA) may be ideal for a business with just one or a few employees. It is relatively easy to start and administer. The employer — not the employees — contributes to a SEP IRA maintained by each participant. Employees are immediately vested, and each employee decides how to be invested. In general, a SEP IRA must cover any employee who is 21 or older, earned at least a certain amount ($550 for 2012), and worked at least three of the preceding five years. In 2012, the annual contribution limit for each employee is 25 percent of compensation or $50,000, whichever is less. SEP IRAs offer flexibility regarding the amount and timing of contributions so they make sense for small businesses with profits that tend to fluctuate from year to year. The Savings Incentive Match Plan for Employees IRA plan (SIMPLE IRA) is generally available to businesses with 100 or fewer employees. The plan allows employees to contribute up to $11,500 of salary in 2012 (plus $2,500 in “catch-up contributions” for employees age 50 or over). The employer must either match the contributions of employees dollar-for-dollar up to 3 percent of each participant’s annual compensation or make non-elective contributions equal to 2 percent of compensation for each worker who has earned at least $5,000 during the year, regardless of whether that worker is contributing. A 401(k) is a defined contribution plan that allows eligible employees to make pre-tax deferrals. Participants decide how much money to contribute (up to plan and legal limits) and how to manage their investments. The employer can make matching or profit sharing contributions. A participant’s deferrals are 100 percent vested. Participants may contribute up to $17,000 for 2012 – those 50 or over may be able to add another $5,500. Total contributions to an individual’s account cannot exceed $50,000 or 100 percent of compensation, whichever is less. The plan may allow for employee loans and hardship withdrawals. A Roth 401(k) is funded with after-tax dollars, as opposed to the traditional 401(k)’s pre-tax dollars. An employer may offer both. Participant contribution amounts to a Roth are the same as with a traditional 401(k). Employer contributions,

however, don’t get the Roth treatment and are pre-tax. A profit-sharing plan allows the business owner to decide (within limits) from year to year whether to contribute on behalf of particiW. DAVID FAY pants. If contributions are made, the business owner must adhere to a formula for determining how the contributions are allocated. The money is accounted for separately for each participant. Consider a profit-sharing plan if income varies significantly from year to year. Money purchase plans are now subject to the same contribution limits as profitsharing plans, but offer less flexibility because the percentage of each eligible employee’s compensation to be contributed is set when the plan is established and cannot be changed. Money purchase plans have generally fallen out of favor. Under a defined benefit plan, employee a formula using factors such as salary history and duration of employment is used to determine benefts. Actuaries use statistical analysis to calculate the cost of funding future benefits. Investment risk and portfolio management are the responsibility of the company. Employees are entitled to the vested accrued benefit. An increasingly popular type of retirement plan is the cash balance plan, which combines aspects of both defined benefits and defined contributions plans. Participants have their own separate account balances, however, the employer is generally responsible for funding the accounts and bears the investment risk. The amount to be contributed by the employer each year is actuarially determined. The employer must make sure the plan has enough money to pay out total contributions plus specified interest, regardless of the performance of the investments. The federal Employee Retirement Income Security Act (ERISA) requires plans be in the best interests of the participants. So while it makes sense to determine which option best addresses your company’s needs, the final decision must ultimately take into account the long-term needs of your workforce.

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

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

Company Name

Symbol

Oct. 3 Sept. 26 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

0.03 0.01 11.44 41.40

0.03 0.01 12.24 41.41

0.00 0.00 -0.80 -0.01

0.03 0.01 9.56 34.62

0.37 0.10 15.94 42.71

8.71 0.38 2.70 9.21 59.77 7.60 88.73 17.80 59.55 3.67 18.45 35.14 35.16 27.93 31.33 15.84 101.56 39.58 48.06 9.84 73.53 55.22 20.73 40.22 28.65 59.74 60.24 205.82 34.35 59.64 5.33 41.77 35.27 14.86 50.14 23.30 1.47 36.78 30.89 41.55 58.77 39.00 38.38 40.53 46.80 68.21 24.15 15.89 54.81 48.30 16.29 42.75 59.36 10.36 8.77 43.75 34.96 62.66 17.14 27.17 45.34 20.18 120.93 28.10 11.34 34.60 75.42 35.63 35.23 10.47 21.86

8.78 0.39 2.78 9.11 59.35 7.81 89.49 17.76 59.18 3.79 19.27 34.06 36.19 29.75 31.78 15.50 99.62 39.88 48.86 10.16 73.66 58.39 21.99 39.41 29.09 61.77 60.96 210.51 34.45 61.06 5.36 40.86 35.84 15.37 52.24 23.79 1.50 37.41 30.70 41.29 58.21 39.49 39.00 40.66 47.47 68.08 23.89 16.50 54.98 47.87 16.02 43.90 56.46 10.70 9.14 43.79 35.38 63.09 17.01 27.47 45.80 21.14 120.64 27.76 11.78 34.88 74.20 36.36 35.44 10.27 21.17

-0.07 -0.01 -0.08 0.10 0.42 -0.21 -0.76 0.04 0.37 -0.12 -0.82 1.08 -1.03 -1.82 -0.45 0.34 1.94 -0.30 -0.80 -0.32 -0.13 -3.17 -1.26 0.81 -0.44 -2.03 -0.72 -4.69 -0.10 -1.42 -0.03 0.91 -0.57 -0.51 -2.10 -0.49 -0.03 -0.63 0.19 0.26 0.56 -0.49 -0.62 -0.13 -0.67 0.13 0.26 -0.61 -0.17 0.43 0.27 -1.15 2.90 -0.34 -0.37 -0.04 -0.42 -0.43 0.13 -0.30 -0.46 -0.96 0.29 0.34 -0.44 -0.28 1.22 -0.73 -0.21 0.20 0.69

7.97 0.20 1.48 4.92 50.95 5.30 72.55 16.25 46.71 3.30 14.12 23.30 20.90 15.97 22.19 9.86 78.41 33.55 34.28 7.08 42.54 50.14 9.40 31.08 20.32 34.05 46.91 176.17 27.10 48.91 3.40 28.28 26.10 6.17 42.72 20.98 0.49 14.36 20.24 35.29 42.57 27.93 27.53 15.32 34.87 52.69 19.06 3.94 41.77 36.50 14.73 31.61 28.89 6.25 7.37 37.05 22.22 47.25 14.04 26.06 32.09 15.51 88.83 25.77 3.96 23.54 54.48 28.53 23.19 5.45 14.22

11.66 3.10 4.06 10.10 61.40 9.94 90.76 28.53 60.00 4.93 21.16 38.40 36.98 30.00 34.74 16.55 104.43 43.43 49.23 12.25 79.23 67.20 22.79 48.96 30.88 63.20 62.00 211.75 35.09 62.33 5.85 46.49 37.17 16.33 56.66 24.83 1.81 38.27 32.29 42.86 62.83 42.17 41.84 42.59 49.68 70.20 43.18 17.47 58.68 49.43 23.16 44.97 85.90 14.32 10.05 46.08 36.28 65.80 18.66 34.24 46.56 25.84 129.27 58.29 14.51 35.46 76.81 37.35 36.60 10.99 22.81

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

OCTOBER 12, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Region’s housing market clings to year-over-year gains By Roger Yohem Inside Tucson Business The region’s housing market is clinging to modest, overall performance gains over the past 12 months despite disappointing data for September in two key measures. September homes sales dropped an unexpected 20.4 percent compared to August, declining from 1,179 to 938 closings. That was the second-lowest total of 2012 behind January’s 915 sales. Through August, closings had been averaging 1,188 per month. Year-to-date however, total 2012 sales exceed 2011 by 6 percent, or 605 homes. From January through September, 10,438 homes have closed compared to 9,833 during the same year-ago period. The new data is from the Tucson Association of Realtors Multiple Listing Service. September listings were 8 percent higher than in August, climbing from 3,564 to 3,845 units. That was the most inventory since March when 4,168 homes were on the market. But again, the year-over-year performance was improved. In September 2011, there were 1,310 more listings, or 25.4 percent more homes in inventory. Regarding prices, September was another period of stability, the Realtors reported. For three consecutive months, the average sales price has held above the $180,000 mark. The level for September was $182,041, up about $2,000 over August. One year ago, the average sales price was $150,699 or 21 percent less. For the fifth consecutive month, the median sales price held above $140,000, coming in at $144,950. One year ago, the level was $117,500, or 23 percent lower. In September, the most home sales were

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

TUCSON REAL ESTATE

10/1/2012

9/24/2012

$129,500 4,454 475 319 169

$148,000 4,375 418 352 305

Source: Long Realty Research Center

TUCA. The award was made through the Sam Witt Scholarship program that supports students who have a family member working in the utility construction industry, said TUCA executive director Ramon Gaanderse. Witt, a masonry contractor and builder, is a founding member of the Southern Arizona Home Builders Association and Catalina Savings and Loan Association.

PCRERC on the QT

30 YEAR 15 YEAR 3/1 ARM

Current

Green Valley foreclosures

Another Culver’s

Median sales prices have held above $140,000 for five straight months.

in the $120,000 to $159,999 price range with 189 closings. Next highest was the $200,000 to $249,999 range with 90 sales. During the month, there were 146 homes priced at $1 million or more on the market and nine were sold. Overall, the most listings were in the $300,000 to $399,999 range with 466 homes in inventory. From $200,000 to $249,999, there were 416 homes in inventory. At the price point of under $99,999, the service reported 688 listings.

Sun Mechanical’s Kinseth Mark Kinseth has been named president of Sun Mechanical Contracting, 3951 E. Columbia St. Owner Scott Candrian will remain active in the business as chief executive office. Kinseth joined Sun Mechanical in 2004 as director of operations. For 26 years prior to that, he managed the commercial/industrial division for a large mechanical contractor in Davenport, Iowa. He holds a construction engineering degree from Iowa State University

WEEKLY MORTGAGE RATES Program

with an emphasis in mechanical contracting. Sun Mechanical specializes in heavy commercial and industrial projects, piping installation, and plumbing and HVAC systems. The company has about 300 employees in Tucson, Casa Grande and Phoenix. Kinseth is a member of the Tucson Conquistadores and the Centurions of Tucson.

In November, QuikTrip will celebrate its 100th store opening in Arizona. Given the state’s shaky economy, members of the Pima Country Real Estate Research Council (PCRERC) want to know how “QT” has been so successful? At the council’s Oct. 31 quarterly meeting, QuikTrip executives will keynote the event and share their development strategy. The forum also includes updates from PCRERC members on the local finance, housing, industrial, land, office, multi-family and retail markets. The Tucson Association of Realtors, 2445 N. Tucson Blvd., will host the meeting and provide a continental breakfast. Registration starts at 7:30 a.m. and the two-hour program begins at 8 a.m. The forum is free to council members; $50 for guests. Register online at www.pcrerc.com under the Upcoming Events tab. Contact Aaron Reid at pcrerc@tucsonrealtors.org or (520) 327-4218 with any other questions.

Last Week

10/9/2012

One 12 Month 12 Month Year Ago High Low

3.63% 3.875%APR 3.50% 3.75%APR 4.95% 2.88% 3.125%APR 2.88% 3.125% APR 4.22% 2.75% 3.00%APR 2.75% 3.00% 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) Hotchkiss Financial, Inc. P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000 MB #0905432. Rates are subject to change without notice based upon market conditions.

3.50% 2.88%

A group of gas stations, small retail and convenience stores, and vacant land parcels owned by Dunlap Oil Company in Green Valley have fallen into foreclosure and are set to be sold at public auction. Seven parcels having an original principal balance of $8 million were listed in the notice of trustee’s sale. The locations are 1051 W. Beta St. and 171 and 173 W. Continental Road. Among the businesses at those sites are a Texaco gas station, Chevron, Dairy Queen, and Merle’s Automotive. Dunlap Oil Company, 4231 Station Master Drive, Tucson, was listed as the trustor and Canyon Community Bank, 7981 N. Oracle Road, is the beneficiary. The public auction is scheduled for 11:30 a.m., December 26 at the law firm of Rusing Lopez & Lizardi, 6363 N. Swan Road, Suite 151.

TUCA scholarship Alina Valle, a graduate of San Miguel High School, has been awarded a four-year, $8,000 scholarship from the Tucson Utility Contractors Association (TUCA). She is a freshman at Pima Community College with plans to pursue a degree in Wildlife Restoration Ecology. Valle will receive $2,000 annually from

A long-vacant, foreclosed gas station/convenience store on the near north side will be the site of Tucson’s third Culver’s Restaurant. The 1.99-acre parcel is on the southeast corner of North First Avenue and East River Road where plans call for demolition of the pumping islands and building to make way for the new restaurant, which is to open next year. Founded in 1984 in Wisconsin, Culver’s is known for its “Butter Burgers” and frozen custard. First River Partners of Prior Lake, Minn., a Culver’s franchisee, paid $815,000 for the site. The seller was Western Alliance Bancorporation, represented by Nancy McClure, CBRE. Western Alliance had acquired the property through foreclosure.

Sales and leases • Western States Flooring leased 10,080 square feet at 3741 N. Eastbound Frontage Road from Peacock Investment Builders Tucson I LLC, represented by Rob Glaser, Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services.

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

24 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

We like letters, but please don’t con us Two weeks ago, Inside Tucson Business had an editorial about a new agreement between the U.S. Postal Service and Valassis Direct Mail. Linking it — along with the planned closing of the Cherrybell mail sorting facility — we were critical of the deal and that prompted a response Tucson Postmaster Carl Grigel. Although he didn’t directly address some of the issues made in the DAVID HATFIELD editorial, we had intended to run the letter until we discovered through a quick Google search that four other newspapers — in Colorado, Missouri, Pennsylvania and Washington — had run the exact same letter from their local postmasters. There were a couple of sentences in the letter that ignored points made in the editorial. One was: “The proposed agreement with Valassis could generate up to $107 million in new revenue for the Postal Service over the next three years.” The editorial pointed out that the Postal Service had made similar claims about deals it had made in the past. But since 2006, the Postal Service has had to publicly report the results and admitted the eight volume discounts in effect from 2007 to 2011 actually lost $20.9 million. So why are we to believe this one would be any different? The other sentence: “This agreement does not include the carriage of advertising from regional and local advertisers.” That was precisely another point made in the original editorial. A large number of Inside Tucson Business readers are local businesses who could not avail themselves of the same kind of deal. Another type of letter we won’t print are those where someone tries to pass off a statement as a fact when it’s not. These seem like attempts at modern-day versions of the Big Lie propaganda technique made famous by the Nazis. An example of this was a letter to the editor in the Arizona Daily Star — one the editors liked so much they printed it twice, on Sept. 30 and again on Oct. 2. In it, the author wrote: “What Rosemont (Copper) ought to do is detail its plan for upgrading and widening SR 83 along with its plan to finance it.” The person went on to write: “...since Rosemont is in poor financial shape it would probably expect the taxpayers to foot the bill!” First, when parent company Augusta Resource acquired the Rosemont Ranch in 2005, it offered to work with Arizona Department of Transportation on a plan to move and straighten the roadway using some of the 2,960 deeded private acreage it acquired east of the highway, so it has already been offered. Second, who says Rosemont Copper is in poor financial shape? Among eight analysts who track the mining industry, six have Augusta Resource shares rated as either a “buy” or “overweight” and the other two have it as a “hold” stock. The company is well-financed. As I’ve written in this space previously, Inside Tucson Business welcomes letters to the editor and we’ll keep my promise that we’ll run them. But please consider our readers and avoid form letters or trying to make statements that aren’t true.

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

EDITORIAL

Vote for the good of business With early ballots arriving in mailboxes, it’s decision time for voters. There are nine statewide ballot propositions, plus one for Tucson city voters on road bonds. While all the propositions could impact businesses, seven directly do so and for those, Inside Tucson Business offers these recommendations for your consideration: • Proposition 116 — Yes — to increase the personal property tax exemption from business personal property taxes. For next year, it would be about $2.3 million using a formula that adjusts for inflation, up from the current level of $68,000. When it takes effect Jan. 1, this will be a significant confidence booster for businesses to reinvest in capital and expand in Arizona. • Proposition 117 — Yes — to simplify valuations for property taxes and get rid of the two-valuation system of “full cash value” and “limited cash value.” The new valuation system, which would take effect for the 2014-2015 tax year, would limit valuation increases to no more than 5 percent per year. It may not make much difference in tax bills, but simplifying the calculations is a good change. • Proposition 118 — Yes — to give schools a better chance at long-term financial planning by stabilizing the annual distribution of revenues from state trust lands to 2.5 percent of the average market values of the fund for the immediately preceding five calendar years. Over the past decade under the current formula, the fund, which currently holds about $3.7 billion, has paid out anywhere from $78 million last fiscal year to nothing in the 2009-2010 fiscal year. The new formula would be in effect through the 2020-2021 fiscal year. • Proposition 119 — Yes — to allow for trading state trust lands for federally owned land to protect military installations from encroachment. This one has wide support from military, education and conservation interests. • Proposition 121 — Yes — to end partisan primary elections in Arizona. Instead all voters, regardless of

party, would be able to vote for any candidate with the top two vote getters for each seat going on to the general election. Beginning in 2014, it would apply to elections for U.S. Senate and Congress, state-wide offices, legislative offices and county and municipal offices. Considering the embarrassing notoriety Arizona has received as a result of partisan politics and the fact that registered voters are leaving political parties in favor of becoming independents, this is the right time for this idea. The loudest opposition is coming from politicians and those who have a vested interest in keeping the political rhetoric turned up. • Proposition 204 — No — to make permanent a 1 percent statewide sales tax that’s due to expire June 1, 2013. The measure is so poorly written it makes for bad policy and provides for little accountability. It’s the kind of thing that might have been proposed when people were flush with money and didn’t care where or how it was spent. The temporary three-year sales tax served its purpose for education during the recession. There’s no question Arizona needs to better fund education, but this is not the way to do it. • Proposition 409 — No position — on the City of Tucson’s request to sell $100 million in bonds over the next five years to fix roads. As we’ve said previously, this boils down to a matter of trust. The city’s streets are in deplorable shape but a lot of that has to do with the city not using money to maintain infrastructure. As an investigation has already shown, there are also some deep-rooted problems within the city’s Department of Transportation, the depth of which have not been fully revealed. We also don’t like the idea that the entire burden of these bonds will be shouldered by property taxpayers. So the question for voters is whether the streets have crumbled into such a state of disrepair that this city can be trusted to properly use $100 million to fix them?

InsideTucsonBusiness.com

OCTOBER 12, 2012

OPINION BUSINESS INK

Email n txtng no sub 4 open FTF mtgs when biz 2B dun Face-to-face communications, dubbed FTF, is not “old school.” In business, FTF has an important bottom line: minimize misunderstandings and maximize effectiveness. No other communications tactic tops sitting down with someone and looking them straight in the eye. Their non-verbal body language — nodding, smiling, looking away or yawning — signals whether the message is getting through. Try that with an email or text. Today’s workplace is a mix of traditional communicators and younger “virtual” communicators who are “new school” tech-addicts. Many of them, however, have phone-phobia and weak inter-personal communications skills. When a big project or key decision is in play, many “work” on it via one-dimensional email. Based on experience, that can take more time than simply calling the co-worker or walking upstairs for a chat. Don’t misunderstand, digital dialogue has its place. Time restricts FTF. Email excels at setting meetings. Memos are terrific for issues that require background. For business and civic officials, message clarity is their key to effective leadership. It is important that all employees focus on the same major goals. When business needs to be done, I asked several community leaders what tactics work best for them? My communications style is: “There is nothing better than a face-toface meeting, particularly when dealing with two parties who are having disagreements. While there was a time not many years ago when I believed in only face-toface meetings, I have found in my new role that e-mail is so effective dealing with constituents quickly, getting their concerns to the people in the City who can help them, and assuring quick response. “Now, it is important to try to get ahead of issues, which is why I have a weekly press conference, a comprehensive newsletter, Facebook, answer every journalist’s call, and try to be as accessible as possible. Soon I will give my web site a full revision. “I have found there is no replacement for direct communication. A person may not always get the answer they want but almost everyone appreciates being heard and getting a response.“ ~ Jonathan Rothschild, City of Tucson Mayor

likewise important, given the complexities of the opportunities and challenges we face, that employees hear directly from each other to encourage inter-departmental cooperation and ROGER YOHEM cross-pollination of ideas. “Although I admit to a particular penchant for memos and dictation devices, it is difficult to pinpoint one dominant style of communication. Again, to use a transportation analogy, streetlights, stop signs and road warning signs all work together to ensure the driver gets the intended message. “Similarly, given the breadth of communication needs among diverse groups, including constituents, employees and elected officials, I try to craft a cohesive message using many styles, rather than expecting one style to work across the board.” ~ Chuck Huckelberry, Pima County Administrator

“Perhaps fitting my roots as a transportation engineer, I consider effective communication a two-way street. “Effective managers do not insist subordinates blindly follow orders. They encourage expansive thinking and motivate employees to provide feedback. It is

“I have learned that tone, body language and voice inflection is critical to effectively communicating in the world of public policy and even in everyday life. Unfortunately, right now our community is negatively divided due to a variety of things, including the national election and

“I remember the big debate in our staff meeting a couple decades ago related to whether the office should buy a fax machine. We did and it revolutionized how we communicated, shortening the time frame to hours or even minutes! Who could have foreseen how email (and text messaging) would accelerate the speed of communications to mere seconds. “Lesson learned: don’t fight technology. “I rely on email heavily now. With the telephone, you often wind up talking to someone’s voice mail and playing phone tag. Of course, there are times when it’s too detailed to put into an email so the phone is still useful. And there are times you must interact face-to-face. So, email allows me to “talk” to more than one person at a time and it makes me more productive. “I’m always careful not to fire off something when I’m angry, and never put something in an email that I wouldn’t want to have to defend publicly. “Texting? I don’t know the language…” ~ Marshall Vest, director, Economic and Business Research Center at the University of Arizona Eller College of Management.

all that comes with it. “As a result, people often are on the defense and unless you hear someone’s tone or see their body language, it is easy to take things out of context and talk past each other. Once people feel their viewpoint is threatened, it is difficult to bring parties to the table to find common ground — something I strive for in every discussion and negotiation.” ~ Amber Smith, director, Metropolitan Pima Alliance

more powerful in relationship building. There are certainly times when electronic outreach is more efficient and effective. “However, speaking for the dinosaurs of the world, when dealing with matters of importance I prefer talking over coffee or receiving a warm personal telephone call. I find it is easier to build trust through personal communications than through impersonal electronic channels.” ~ Steven Banzhaf, U.S. Trust, Bank of America Private Wealth Management

“Effective communication depends on several elements, but the goal is the same: information from the sender is received and clearly understood by the receiver. Electronic communication is great for speed and communication of facts. But nothing beats old school eye-to-eye communication when communication involves emotion, depth and reciprocity. “Body language is missing from e-mail and often says more than words. Generally, the less personal the communication, the more “okay” it is to use e-mail, letters, text messages, etc. The more personal the communication, the more important it is to look someone in the eye.” ~ Mike Varney, president and CEO, Tucson Metro Chamber

“Face-to-face, or at least verbal communication. I am a high-touch person and believe personal interaction is critical to thoughtful conversation, important perspectives and sharing of priorities and beliefs. “Email has its place for some types of communication needs but nuances are often lost and the chances of mis-communicating the real intent or message are high. “In other words, I don’t think you can lead by email. “For effective communication, you need to be open, honest and direct with people. Real, lasting relationships and partnerships are the result of the hard work of getting to know others, building trust and finding common ground.” ~ Joe Snell, presdent and CEO, Tucson Regional Economic Opportunities

“Written! That semester of typing my sophomore year was worth its weight in gold. Since my fingers fly faster than I think, I rely heavily on email, with caveats. A wise man once told me: ‘Never use email to convey bad news, and once the tenor is contentious, pick up the phone.’ “I’m a big believer in texts and emails to convey information. They fend off phone tag and are easier to scan for meaning than a voicemail when the message is lengthy. Using tools like Doodle for meeting scheduling can be a big time saver. “At the end of the day, commercial real estate is a relationship business and we rely heavily on personal interaction. You’re most successful when you tailor communications to the preferences of your client.” ~ Barbi Reuter, principal, Picor Commercial Real Estate “Call me a dinosaur. I will proudly own that label. “Unfortunately, interpersonal communication is becoming a lost art. State-ofthe-art technical skills are wonderful and even essential today. However, in my opinion, those employees who can successfully combine technical skills with “old-school” personal communication skills will own the future. “I am frustrated when I observe our employees text or email when a personal contact or telephone call could be much

“It depends on the situation. I normally call and discuss. I like the feedback, the back and forth and coming to a solution together. I can also get a good idea how they feel when hearing their voice versus an email. I do email if it is simple, timely or just a straightforward request or question. “I’ll have FTF with more ‘meaty’ issues or strategic thinking, personal issues, finances, etc. I like interacting with folks in our organization as I think ‘face’ time is important, it allows me to connect with my employees. I also think they value the time I personally interact with them. I value my employees’ opinions and they know they can call me anytime. “I’m more verbal and interactive with those in my organization vs. corresponding strictly with email. I do email, but only if the matter is rather simple and straightforward.” ~ George “Hank” Amos, president, Tucson Realty & Trust

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.

26 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

OPINION ADVOCATING FOR BUSINESS

One day. One project. Something we all can agree on. It was sometime back in the spring when I first heard about and spoke with Phil Seader, an employee with the local nursery Green Things. Phil has a show on KVOI 1030-AM called “Green Things Desert Garden Show” and is one of those uncommon individuals with a real community passion. When we spoke, Phil said he had approached the City of Tucson with an idea. It was a simple idea and a good one, “Why can’t we clean up our own city?” Indeed. Why can’t we? It’s easy to gripe about the conditions of weed-infested medians, curbside litter and the trashy nature of some vacant lots. But griping never solves anything. Phil had an idea to actually do something about the appearance of our city. When I spoke to Phil, I encountered an easy-going, no-frills kind of guy. He grows and helps people care for colorful living things. He eschews technology and instead likes dealing with people face-to-face. Then Phil had the idea, “Why can’t we clean up our own city?” With Phil’s idea was born a grassroots program called Operation Clean Sweep, a

“Unless someone like you cares a whole awful lot, nothing’s going to get better. It’s not.” Dr. Seuss, The Lorax

• Pick up any items that pose health and safety risks Help promote Operation Clean Sweep by posting signs in your business break room, at your reception desk or by putting copies of the official Operation Clean Sweep flyer in employee paychecks. You’ll find the flyer on the Tucson Metro Chamber’s home page — www.tucsonchamber.org/ — in the rotating graphic panel at the top. Talk about Operation Clean Sweep with your employees and urge them to discuss it with friends, family and neighbors. You can get more information about Operation Clean Sweep at greenthingsaz@gmail.com or by calling (520) 299-9471. How ‘bout it, Tucson? Are you in? Do you really want a nicer looking community...or is it easier just to grumble and complain that nobody is doing anything about it?

tion Clean Sweep is only about the citizens of our community and their true desire to clean things up. The Tucson Metro Chamber supports Operation Clean Sweep and hopes you will, too. Support it individually. Support it

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.

one-day outpouring of community effort to make a positive difference on Oct. 20. The City of Tucson has adopted it. So have the Tucson Metro Chamber, Tucson Regional EconomMIKE VARNEY ic Opportunities, Pima County, Pima Association of Governments and Tucson Clean and Beautiful. Operation Clean Sweep has no formal structure. There are no maps. No reports. No organizational accountability. Opera-

through your church group, company, Scout group or neighborhood association. Do as much or as little as you want, but please do something to help Operation Clean Sweep succeed. The “rules” are simple: Do: • Clean up trash and weeds in your own yard and along alleys and neighborhood streets • Wear gloves, sunscreen, closed-toe shoes and a hat • Drink plenty of water • Supervise younger volunteers • Be aware of possible encounters with potentially harmful wildlife • Dispose of trash in your own trash bin

Don’t: • Work in the roadway • Pick up trash along streets where the speed limit is greater than 25 miles per hour • Trespass on private property

InsideTucsonBusiness.com

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WEB PRODUCER DAVID MENDEZ dmendez@azbiz.com

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InsideTucsonBusiness.com

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28 OCTOBER 12, 2012

INSIDE TUCSON BUSINESS

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WOMEN INFLUENCE

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Read all about this year’s 20 Women of Influence in the October 26th special issue of Inside Tucson Business Carmen Bermudez Ginny Clements Carolyn Compton Valerie Diaz Colleen Edwards Jacquelyn Jackson Raena Janes

Kathleen "Rocky" LaRose Barbara LaWall Lori Mackstaller Jeannette Mare Kelle Maslyn Jane McCollum

Linda McNulty Karen D. Mlawsky Cindy Parseghian Jane Poynter Barbi Reuter Neelam Sethi Amber Smith

DON’T MISS THE OPPORTUNITY TO CONGRATULATE THESE RECIPIENTS at the 2012 Women of Influence breakfast celebration! EVENT DATE: Friday, November 16th | LOCATION: Tucson Marriott University Park REGISTRATION: 7:00 am | BREAKFAST & PRESENTATION: 7:30 am – 9:30 am $50 per seat or a table of 10 for $500 RSVP by noon on November 12, 2012

To PURCHASE TICKETS go to www.insidetucsonbusiness.com/womenofinfluence or contact Jill A’Hearn at 295-4236