WINTER FALL 2012 2013
THE REGION’S BUSINESS MAGAZINE
Meet of NewArizona UA PresidentPresident University
Ann Weaver Hart Leads $1.9 Billion Enterprise
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TREO A SALUTE SPECIAL TO REPORT: JIM CLICK:
NEW RAYTHEON HORIZONS SPIRIT FOR OF2013 EDUCATION AWARD • TUCSON MAN & WOMAN OF THE YEAR EL TOUR DE TUCSON HITS 30 • SYNCARDIA SYSTEMS: ARTIFICIAL HEART
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WINTER 2013 • $2.99 • DISPLAY UNTIL 02/29/13
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BizLETTER A Solid Foundation for 2013
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Expect to read about more UA spinoffs and profitable high-tech projects in the coming years. Two icons of our business community – Donald R. Diamond and I. Michael Kasser – partnered to form Diamond Holualoa Capital. This high-powered duo believes that Tucson’s future economic success is based on investing in high-tech ventures. David B. Pittman files a compelling report on the dream team of tech investing. Looking to 2013, BizTucson focuses on New Horizons and how Tucson Regional Economic Opportunities is accelerating economic growth by recruiting firms in four target industries. The chairman’s circle and board of directors, plus the staff led by TREO President & CEO Joe Snell, partnered to successfully recruit several new firms to relocate here. Private-sector business leaders and government entities are working together to grow our economy. Seventeen influential business leaders whose organizations are major stakeholders in TREO offer their visions for 2013 and beyond. Eric Swedlund, Romi Carrell Wittman, Christy Krueger, Dan Sorenson and Gabrielle Fimbres compiled this special report that provides insight into what’s new on the economic development frontlines. This issue of BizTucson highlights business news that indicates we are indeed well positioned for the New Year. Steven E. Rosenberg Publisher & Owner
Biz
Silver Excellence Award – BizTucson’s special section on the Arizona-Mexico Commission has resulted in a Silver Excellence in Economic Development Award for AMC and the University of Arizona Office of University Research Parks. The award was given by the International Economic Development Council, recognizing the world’s best economic development programs and partnerships, marketing materials and the year’s most influential leaders. The 32-page report entitled “Arizona-Mexico: The $26 Billion Connection,” was written by Gabrielle Fimbres, designed by Brent G. Mathis and edited by Donna Kreutz. It appeared in the spring 2012 issue, highlighting the economic connections between Arizona and Mexico.
4 BizTucson < < < Winter 2013
Winter 2013
Volume 4 No. 4
Publisher & Owner
Steven E. Rosenberg Brent G. Mathis
Creative Director Photo: Steven Meckler
The University of Arizona is in many ways the heart and soul of our region’s business community. As the #1 publicsector employer with 12,000 employees, and one of the leading research institutions in the nation, this is a nearly $2 billion enterprise. Leadership of this land-grant university is critical to the success and economic vitality of our city. The breadth and depth of research at the UA has been globally acclaimed for more than a century. Corporations remain here because of the world-class educators, researchers and highly skilled graduates. This summer, the Arizona Board of Regents named Ann Weaver Hart the 21st president – the first woman in UA history to lead the institution. Gabrielle Fimbres provides an exceptional profile of Hart and her priorities. One example of great innovation from the UA is the world’s only approved total artificial heart. Fimbres’ report on SynCardia Systems will keep you on the edge of your seat. The SynCardia story is one of sheer perseverance against all odds. The turbulence marking the company’s progress would make a fine book or movie – one with a happy (and at last profitable) ending. More than 1,000 artificial hearts later, and with impressive recent advancements, SynCardia is ready for prime time worldwide, according to CEO Michael Garippa. Another story with heart is the Steven M. Gootter Foundation – where an allvolunteer committee raised $2 million over seven years to fund an endowed chair to research a cure for sudden cardiac death. Nationally prominent researcher and cardiologist Dr. Jil Tardiff shares her insights with Eric Swedlund. The Gootter Foundation honors Ginny Clements of Golden Eagle Distributors with the Steven M. Gootter Philanthropic Award for her lifetime of community service. This local charity honors the memory of Gootter, a young father and husband who fell victim to this insidious syndrome.
Gabrielle Fimbres Donna Kreutz
Contributing Technology Director
Mike Serres
Contributing Editors
Contributing Cuisine Writer Edie Jarolim Contributing Writers
Mary Minor Davis Pamela Doherty Gabrielle Fimbres Chuck Graham Edie Jarolim Sheryl Kornman Donna Kreutz Christy Krueger Joan Liess Ethan Orr David B. Pittman Anna Rasmussen Steve Rivera Dan Sorenson Monica Surfaro Spigelman Eric Swedlund Valerie Vinyard Teya Vitu Romi Carrell Wittman
Contributing Photographers Carter Allen
Kris Hanning Amy Haskell Erik Hinote Brent G. Mathis Steven Meckler Chris Mooney Tom Spitz Balfour Walker
Member:
Arizona Builders’ Alliance Metropolitan Tucson Convention & Visitors Bureau Tucson Advertising Federation Tucson Hispanic Chamber of Commerce Tucson Metro Chamber Tucson Regional Economic Opportunities (TREO)
BizTucson Phone: 520.299.1005 Subscription Information:
www.BizTucson.com subscriptions@BizTucson.com Advertising information:
Steve Rosenberg 520.299.1005 or 520.907-1012 steve@BizTucson.com BizTucson is published quarterly by Rosenberg Media, LLC. ,Tucson, AZ © 2013 All rights reserved. Reproduction in whole or in part without written permission is prohibited. Opinions expressed in columns or articles do not necessarily reflect the views of the publisher.
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Whatever you’ve told us drives our every move. Therefore, what you want is what we pursue. What you need is what we get. We never forget that we work for you. CORPORATE REAL ESTATE SERVICES 3709 North Campbell, Suite 201 | Tucson, AZ 85719 | 520.881.8180 | FAX: 520.881.5844 Contact us at 1.800.831.4090 or at cotlow.com
BizCONTENTS
FEATURES
WINTER 2013 VOLUME 4 NO. 4
COVER STORY:
BizLEADERSHIP Meet Ann Weaver Hart University of Arizona President
126
BizMILESTONE Tucson Conquistadores 50th Anniversary
DEPARTMENTS
131
BizSPORTS Accenture Match Play World Golf Championship
134
BizCOMMUNITY Youth Sports Center
136
BizLEADERSHIP Making an Impact
138
GTL On The Move
48
36 52
142
4
BizLETTER From the Publisher
24
BizTOURISM Rodeo Corrals Millions for Local Economy
28
BizART Artist Blossoms
30
BizSALES Guru Jeffrey Gitomer
32
BizMEDICINE Solving Mysteries of Sudden Cardiac Death
36
BizHONOR Honoring Ginny Clements
40
BizSPORTS Old Pueblo Grand Prix
42
BizMEDIA Proactive News Approach
46
BizRETAIL A New Beginning
52
BizMEDICINE SnyCardia: Ready for Prime Time
60
BizHEALTHCARE Dependable Health Sees Healthcare Boom
64
BizENTREPRENEUR VCs Unplugged
65 BizSPECIAL REPORT
Tucson Regional Economic Opportunities
BizHONORS 140 Tucson Man & Woman of the Year 147
BizHEALTHCARE Judy Rich Honored
148
BizTECHNOLOGY Laser Art Imaging
150
BizRx ScriptSave Soaring Again
156
BizAUTOMOTIVE Royal Treatment
160
BizHOPE Breast Cancer Seminar
165
BizVENTURE Diamond, Kasser Invest in Technology
168
BizCONSTRUCTION ABA Improves Housing For Veterans
170
Technology Leader for 35 Years
172
BizEDUCATION St. Augustine Catholic High School
174
BizCOMMERCIAL CCIM Industry Forecast
176
BizVISION Imagine Greater Tucson Population at 2 million
180
BizEDUCATION Catalina Foothills Foundation
181
BizHONORS Copper Cactus Awards
70 New Horizons: Accelerating Economic Growth 75 TREO Chairman’s Circle 112 Tenacity Attracts High-Tech Pioneer 115 Cascading Cooperation Results: Accelr8 117 Building World-Class Diagnostics Industry 119 Key Industries on Growth Path 120 New Businesses to the Region
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ABOUT THE COVER Ann Weaver Hart, President, University of Arizona Creative Direction: Brent G. Mathis, Photo: www.BalfourWalker.com
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BizTOURISM
Rodeo Corrals Millions for Local Economy
PHOTOS: BRENT G. MATHIS
By Monica Surfaro Spigelman
24 BizTucson < < < Winter 2013
Heads up! Come February, Western fever will be contagious. The dust billows, boots get polished and buckles come out to cinch our best-cut jeans. Trailers full of livestock, horses and tack rumble into town, filling stables, RV parks – and retailer coffers. The 88th annual Tucson Rodeo – also known as La Fiesta de los Vaqueros – is a Wild-West convergence of firstrate horsemanship and proof that professional cowboys are indeed alive and well in Tucson and beyond. “Of 568 rodeos, Tucson is among the top 25 in the world,” said Gary Williams, the rodeo’s GM since 1994. “We’re the first big outdoor event of the pro rodeo season. We have a large arena with the best livestock. We’re the largest outdoor winter rodeo and a key stop on the circuit for all cowboys who want to be part of the National Finals.” From Feb. 16 to Feb. 26, some 60,000 spectators from around the globe will converge upon Tucson’s historic rodeo grounds to watch world-class pros compete for a purse of more than $460,000 – and a trophy buckle of gold and silver inlaid with diamonds. Some 200,000 also turn out for the Tucson Rodeo Parade – the longest non-motorized parade in the nation. Tucson’s rodeo is big business. Williams estimates the impact on Tucson’s economy at more than $20 million – factoring in tourists, feed and boarding for animals and contestant spending. The rodeo draws visitors from around the globe, many returning from Europe and Canada year after year. The demographics are split evenly across age groups and gender. “Rodeo is a very serious sport that’s growing in popularity with events in Europe, South America, Australia as well as the United States,” he said. “And Tucson is in the top tier of this business.” Williams knows rodeo. A bull rider for 16 years, he was on the professional circuit, with 136 rodeos under his belt. In 1977 he was 24th in the world, winning a purse of $6,000. Beyond the purse money that attracts the competitors, the total cowboy package is what lures everyone back to Tucson’s internationally acclaimed event. There’s the rodeo’s retinue of bucking horses and bulls and powerful, worldclass riders who revel in the competitive spirit – plus a host of ancillary daily events and booths that showcase all aspects of a true Western heritage experiwww.BizTucson.com
ence. Think funnel cakes and brisket, vintage buckles, cowboy hats and cowgirl glitterati, even stop-action photography lessons. Ready to Rodeo La Fiesta de los Vaqueros is a nineday ode to the cowboy and attracts more than 700 contestants and about 1,000 horses. There are six rodeos, including the culminating finals on Feb. 24, which bring together the world’s top 12 cowboys and cowgirls from the week’s completion. Men compete in six events, women in one – barrel racing. The lively competition includes bareback riding, steer wrestling, saddle bronc riding, tie-down
“
Tucson is among the top 25 in the world. We’re the first big outdoor event of the pro rodeo season. We’re the largest outdoor winter rodeo and a key stop on the circuit. – Gary Williams GM, Tucson Rodeo
”
roping, team roping and bull riding, all sanctioned by the Professional Rodeo Cowboys Association. The barrel racing is sanctioned by the Women’s Professional Rodeo Association. “The size of the arena dictates how much head start the livestock gets coming out of the chute – and Tucson has one of the largest arenas on the circuit,” Williams said. “You’ve got to be a pro to win at the Tucson arena, and that’s what adds to the excitement.” Cowboy icons – including defending Tucson all-around champ Bobby Mote of Culver, Ore. – are expected to compete in bareback riding. Local team roper Cesar de la Cruz, a multitime national finalist, will be back to compete roping steers. Sherry Cervi of Marana, a four-time barrel racing world champ, is expected to compete against other top cowgirls, including
Reiney Hatch of Ukiah, California, the defending Tucson champ. Rodeo animals share the limelight with the cowboys and cowgirls. The livestock are peak-conditioned athletes themselves, brought to Tucson from Beutler & Son Rodeo Co. This century-old Oklahoma cattle business is renowned for raising the best livestock in the industry. “Remember, in rodeo, the unwritten rule is that your animals are taken care of before you are,” Williams said about the strict rules regarding rodeo livestock welfare. “Everyone – from the cowboys to the veterinarians on site – is focused on providing exceptional care to these important rodeo partners. They are performers prized as much as their human counterparts.” Economic Punch This multi-million-dollar tourism and sporting tradition began in 1925. Today the Tucson Rodeo spurs a corral-full of local business and attracts national sponsors. The two largest national sponsors – Coors and Ram Trucks (Dodge) – have been with the Tucson Rodeo since the 1980s. Wrangler and Coke also support the rodeo through ticket sales and product promotions as sponsors for more than two decades. Desert Diamond Casino & Entertainment and Arizona Oncology are just two local businesses that have partnered with the Tucson Rodeo. Local restaurants and watering holes enjoy a bonanza throughout the allthings-Western extravaganza. Whataburger, a rodeo marketing partner since 2003, has a bull renamed during each performance for the company. Others, like The Silver Saddle Steak House at Interstate 10, call rodeo peak season and see their tables fill with fans rubbing shoulders with the cowboys. Then there are the stock feeders and stables, where hay sales soar and boarding is full up. Western retailer Boot Barn, with five stores across Southern Arizona, welcomes rodeo goers with a 3,000-squarefoot tent on the rodeo grounds full of updated apparel, boots and hats. “The rodeo means an extra peak season similar to a Christmas-holiday peak in sales,” said Boot Barn District Manager Dirk Gibbons. “As much as the dollars, the Tucson Rodeo seems to have it all in the way continued on page 26 >>> Winter 2013 > > > BizTucson 25
BizTOURISM
La Fiesta de los Vaqueros runs Saturday, Feb.16 through Sunday, Feb. 24 at the Tucson Rodeo Grounds, 4823 S. 6th Ave. at Irvington Road. Check schedule as events and times vary daily.
Parking at the Tucson Rodeo Grounds main lot is $5 per vehicle. For tickets, call 741-2233, email info@tucsonrodeo.com or order online. Learn more at www.tucsonrodeo.com.
Tucson Rodeo Parade begins 9 am Thursday, Feb. 21. To check the parade route, museum hours or volunteer opportunities visit www.tucsonrodeoparade.com.
continued from page 25 of fan enjoyment, Western pride and the community unity it ignites,” Williams said. That encourages local sponsors, who welcome back the rodeo with repeat sponsorships and ticket subscriptions. In the grandstands that seat 11,000, long-term season box holders are split about evenly between local companies and individuals. In the Vaquero Club, an enclosed tent for comfortable rodeo viewing, many businesses purchase tables. Some come from outside Arizona – including a Palm Springs tour company that booked a group of 25 for the Vaquero Club in 2013.
men antics. When the dust settles after the final rodeo, the Coors Barn Dance tent, now in its third year, rolls out evening activities with food booths and live entertainment. Also on the sidelines is the Western Marketplace circling the perimeter inside the rodeo grounds, with vendors representing all facets of everyday working ranch life. The popular Canon-sponsored photography workshop returns for a third year for enthusiasts who want to learn pro techniques for great stop-action rodeo images.
Arena Action The variety of arena action, shopping and culinary experiences make this a rich and authentic Western event. The Quadrille de Mujeres, a women’s precision riding team from Casa Grande, is one example of a crowd favorite. The Quadrille leads off the 2013 rodeo for the 34th consecutive year. Tucson’s roughstock events – with daring bareback, saddle bronc and bull riding demonstrations of cowboy and animal intensity – are always a dazzling draw. Also popular are slack competitions, a mechanism that allows the Tucson Rodeo to accommodate more contestants to show their stuff and wow the crowd in events like steer wrestling, barrel racing and roping. Athleticism is key – even down to the entertaining barrel-
Ropin’ Future Wranglers To inspire the next generation of cowboys, there are two pre-rodeo activities. Youngsters 6 to 14 years old compete in the Justin Junior Rodeo, and kids 4 to 6 test their riding skills on sheep in the Dodge Mutton Bustin’. Year-round educational initiatives include the Rodeo Education and Children, known as REACh, a free program for school groups held at the Rodeo Grounds, bringing the historic sport to life for Tucson area kids. Activities are led by a teacher and former rodeo contestant. The Tucson Rodeo also benefits a University of Arizona scholarship fund, the Lions Club, Rotary Clubs and 4-H groups. Given the strong, sustained clout of Western art, a sought-
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after collectible each year is the Tucson Rodeo commemorative poster. The poster series began in 1989 and always features art that captures the essence of the Western experience. The 2013 limited-edition poster features a richly detailed cowboy rodeo scene painted by artist Tom Dorr. “Everything about the rodeo is a non-stop demonstration of achievement and talent that personifies the spirit of the West,” Williams said. 88-Year Parade Tradition If the Tucson Rodeo is one of the city’s biggest spectacles, then surely the Tucson Rodeo Parade (this year on Feb. 21) is its cultural centerpiece. Nowhere in the nation is there a rodeo school holiday – except in Tucson. Businesses close to participate either as an entry or an onlooker. Some of the 200,000 spectators arrive early and camp out to claim choice spots along the 2.45 mile route. Lasting more than three hours, the parade features hundreds of riders, wagons, marching bands, equestrian units, mariachis and floats. This is the longest non-motorized parade in the U.S. and second in the world, behind the annual eight-hour elephant parade in Nepal. This year’s parade includes 900 horses (not including mules and miniatures), 90 buggies and wagons and 2,100 participants. Entrants come from across the country, including the El Paso Sheriff Posse, a longtime crowd favorite. This 88-year parade tradition bears witness to regional ranching lore and its memorabilia. “This is the last link to Western tradition for many families. It brings out the inner cowpoke in all of us,” said Bob Stewart. He’s a longtime member of the hardy, all-volunteer 36-member Tucson Rodeo Parade Committee that produces the parade in cooperation with the City of Tucson. Safety is serious parade business for both the volunteers and the city workers who line the parade route among the spectators. The parade begins at Park Avenue and Ajo Way, winding south on Park to Irvington, then west to the parade grounds. The Tucson Rodeo Parade Committee also staffs the Tucson Rodeo Parade Museum, housed in a collection of historic buildings on the parade grounds. One of the buildings is a sheriff ’s 1930s adobe. Another, a blue-skinned hangar, is the original steel frame of the 1919 Tucson Municipal Airport, the site of the first municipal airport in the United States. Many wagons used in the parade are from the Tucson Rodeo Parade Museum, which opens for public tours January through April, with extended hours during rodeo season. Mercantile and blacksmith displays, original Buffalo Soldier harnesses, buckboards used in John Wayne movies, exhibits documenting Tucson’s role in aviation history and even a Brougham carriage built in 1863 for royalty (and valued by Antiques Roadshow at more than $500,000) are all part of the tour. “Parts of Western history were written here,” Williams said. “The rodeo, the parade and the museum celebrate a professional sport and a profound Western tradition that’s still booming.” He noted that the Tucson Rodeo Committee and Tucson Rodeo Parade Committee are both volunteer-based, nonprofit community groups. “When you stand out in the middle of the arena, it’s electric. The rodeo is an event with a larger-than-life impact on our economy, our history and our community.”
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PHOTO: AMY HASKELL
Mary Schaefer
Artist Blossoms By Valerie Vinyard
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BizART As soon as you walk into Mary Schaefer’s home, you know an artist lives there. After being greeted at the door by 7-year-old Lulu, an effusive yellow Labrador retriever, you notice paintings upon paintings adorning the walls of the warm midtown home where she and her husband have lived for 48 years. Then you enter her well-lit studio toward the rear of the house, where about 80 more of her works hang on its walls. Her Western artwork is a riot of color and includes landscapes, flowers, burros, houses and a few people. Many of her works focus on one realistic figure with the rest of the painting seamlessly flowing into Impressionism. People wouldn’t be out of line thinking they see touches of Vincent Van Gogh or Claude Monet in her works. You notice how spotless the light-colored floors are in her studio, and Schaefer proudly shows how careful she coaxes the pricey oil paints out of the many tubes scattered around her easel. Oil paints are the only kind she uses. “Oil is the classic medium,” Schaefer said. “You can see (my paintings) have a life of their own.” Clusters of pictures of Schaefer with George W. Bush, Laura Bush and other politicians line one of the walls. Schaefer noted that one of her prints of San Xavier (pictured here to the right) hung in the White House during the second Bush’s tenure. Born in Laredo, Texas, Schaefer started painting later than most – in her 50s – but her husband said that her immediate affinity with the medium made it difficult to tell. “I thought she started out way ahead of a lot of them who had been doing it for years,” Art Schaefer said. Her originals today are priced from $950 to $10,000, with the average going for $3,000 to $4,000. Prints are priced considerably lower. “I never realized I had talent,” said the onetime star tennis player and swimmer. “I must have had something there – I just never recognized it.” Some of Schafer’s works have been made into tapestries, posters, giclee prints and notecards. She created former Arizona Congressman Jim Kolbe’s last Christmas card when he was in office. www.BizTucson.com
“I started quite late because I traveled half the year for 15 years all over North and South America with Art,” Schaefer said, because of her husband’s job as a mining engineer safety director for Asarco. “Whether I was in New York City or the jungles of Nicaragua, I would take something to sketch.” Schaefer also shot a lot of photography. She took classes from a private instructor for a couple of years, then moved on to workshops in Taos and Scottsdale. She loves art museums – especially the Art Institute of Chicago. Schaefer first hooked up with a Scottsdale studio 24 years ago to showcase her work. She since has left galleries and now paints for Joan Cawley Publishing in Scottsdale and Bentley Global Arts Group, a fine art publishing company headquartered in Austin.
Judith Miller, former owner and director of Rosequist Galleries, entered the art business in 1978 and began representing Schaefer in the mid-to-late ’80s. “What has always stood out about her is the strength of her paintings,” said Miller, who has known Schaefer since high school. “Mary’s paintings are ‘Pow!’ right there – but there is a gentleness with it that you don’t find with many other artists known for their gardens.” When Mary met Art while a student at the University of Arizona, she liked to do tiles and mosaics or “crafty-type things.” She graduated from UA with a degree in elementary education, and she taught for 13-plus years. Art, now retired, is working on his first book, chronicling his 33 missions in Germany during World War II. Schaefer also has authored a book –
“The Life That Gave Me Art” – which she published in 2006. It’s an impressive coffee-table book of some of her 600-plus photographs and paintings. She’s participated for years in the Annual Contemporary Western Art Show and Sale at the Mountain Oyster Club in Tucson, which has made her an honorary artist member. She said the show features 200 artists and is regarded as one of the top Western art shows in the nation. Mary Parnell met Schaefer at the club about 10 years ago and considers herself lucky enough to own two Schaefer paintings and her book. Over the years, the upstate New York native has formed an appreciation for “pieces that pop out at you.” “You just fall in love with them,” said Parnell of Schaefer’s paintings. “They’re just happy beautiful paintings you love to have in your home.” One of the paintings is of her garden, with “pots and happy flowers,” while the other is “a happy lonely little shed in a field with little daisies.” Schaefer shows more works every year at the Empire 100 Western Art Show and Sale, which runs mid-January through February, this year at Northern Trust, 6444 E. Tanque Verde Rd. The sale supports preservation of the historic ranch near Sonoita and will feature about 200 Western artists. Though no longer affiliated with any galleries, Schaefer still does some commissions. “It’s usually people who have lived in their family home for many years and want a painting of it,” Schaefer said. The avid gardener also speaks to many gardening groups in town and hosts occasional tours of her vibrant backyard garden that is bursting with 250 pots of flowers. “I use my garden for my work,” said Schaefer, noting she prefers the “showy flowers that flower all the time.” Schaefer remains active in charities, too, and donates paintings and prints to such organizations as the Arizona-Sonora Desert Museum, Tu Nidito Children and Family Services and Angel Charity for Children. “I feel very strongly that charity begins at home,” she said in a recent email. “I prefer to help my own community first.” Biz Winter 2013 > > > BizTucson 29
BizSALES
Sales Moves Taking time to think by Jeffrey Gitomer
Get ready to think! Are you ready? What are you thinking? Investing time in your thoughts – especially in an amazing place – creates incredible results. I was fortunate to spend a month in Paris with my family. I headed off with the goal of finishing a book, taking in the culture, enjoying my family – and thinking. Jessica, my partner and mother of our daughter Gabrielle, came up with a great idea to give our staff an insight into what we would do in Paris by giving them a week off with full pay – and challenging them to spend (invest) their time thinking or achieving a lifelong goal. At the time, I sent my staff a few ideas on thinking to get them going – and now I’m sharing them with you. These are personal insights that will help you achieve some original thought… reaffirm some existing thought… and maybe even get rid of a few unwanted thoughts. Think about it. 1. Identify your NOW feeling and state of mind. What’s up? Happy? Sad? Afraid? Mad? It’s important that your mind at least be in “neutral” before you start the thinking process – and the more the needle leans toward happy and positive, the more productive and rewarding the thinking time will be. 2. Wake up and write. It doesn’t matter what it is, just write whatever comes to mind. Don’t force yourself to do it, just let words flow. As you think, capture your words. 3. Mentally go back to the house you grew up in and picture yourself in each room one at a time. Stories will begin to pop into your head about what happened. Pick the fun ones and document them. This may even prompt you to call some people you love that you haven’t been in touch with recently. 4. Don’t write about your goals. Focus on things you would like to achieve. Write a bucket list of places you must go before you die. Go online and find pictures of each one of them and paste them next to the place you want to go. Make it real. Going to India may be a place you want to visit – but adding a picture of the Taj Mahal makes it more real. After you have listed all the places, jot down a few things you MUST do. Maybe it’s run a marathon – or go to the library more often. Whatever it is (or they are) commit to it (or them) in writing. Add to the lists regularly. 30 BizTucson < < < Winter 2013
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5. Find a quiet place where you can be alone to write. Starbucks is not the best place. A park is better. I spend a lot of my time in parks and by water. Something about the sound of wind or the sound of the water is calming. (Just an added note: I do not listen to music while I write – but if I did I would listen to light jazz or classical.) 6. Don’t let your thoughts get away. Write down the key words so you don’t forget. Thoughts are fleeting. If you wait a minute and then go back to it, it’s gone. Rather than dwell on details, quickly jot key words. 7. Write your biography. A short history of where you grew up, who you are, and what you did – just two or three paragraphs. 8. Write about work – what you love, hate and wish were different. From that list (especially what you hate) you will begin to generate a few ideas. Write them down immediately and then let them sit for a day. Don’t just write the idea – write everything you are thinking about it. I refer to it as a brain dump. Having written more than 1,000 articles, they often come from frustration, not just ideas. And when I first think of them, I immediately write everything down that’s in my head – not in sentence format, just the ideas and words – so I capture the thought and can go back and fill it in later. 8.5 Write everything down at the end of your day. Before you go to bed at night, clear your mind so you can dream and wake up with answers. You do this by writing your thoughts, your to-dos, your challenges, and maybe even your hopes and fears before you go to bed. Once it’s written, you can forget about it. This will allow you to sleep like a baby and wake up with an uncluttered mind. Please take advantage of your personal time. It will pass quickly. Try to invest as much of it as you can FOR YOURSELF. I’ll be doing the same. I look forward to sharing your experience when I return. Biz Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at salesman@ gitomer.com. © 2012 All Rights Reserved. Don’t even think about reproducing this document without written permission from Jeffrey H. Gitomer and Buy Gitomer. 704/333-1112
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PHOTO: CARTER ALLEN
BizMEDICINE
Solving the Mysteries of
Suddden Cardiac Death By Eric Swedlund
32 BizTucson < < < Winter Winter2013 2013
Dr. Jil Tardiff, Steven M. Gootter Endowed Chair for the Prevention and Treatment of Sudden Cardiac Death www.BizTucson.com
Dr. Jil Tardiff had her career in biomedical research steered toward endocrinology until a patient suffered a sudden cardiac episode. Resuscitating the patient, doctors discovered she’d developed an enlarged heart, and from that moment on, Tardiff devoted her efforts to studying hypertrophic cardiomyopathy, or HCM, which affects one in 500 people and is one of the most frequent causes of sudden cardiac death. Tardiff ’s chief goal became understanding HCM’s mysterious and complex cellular and genetic mechanisms and the disease’s mutations in heart cells. It’s what drove Tardiff to the top of her field at Albert Einstein College of Medicine in Bronx, N.Y., and subsequently drove the University of Arizona Sarver Heart Center to recruit Tardiff as the first Steven M. Gootter Endowed Chair for the Prevention and Treatment of Sudden Cardiac Death. “There is something about these patients that often really grabs you and that’s what happened to me,” Tardiff said. A dual M.D. and Ph.D., Tardiff said her background in both the lab and the clinic gives her “translational heft” and credibility in both arenas of basic scientific research and patient treatment and care. “Because I actually see these patients, it gives me insight to the true clinical condition that I want to study,” she said. “This is the whole concept of medicine as an art – and it comes from interacting with patients and realizing what you learn in books is only the starting point and every single patient is different. Most of my patients are the exception, not the rule. And that’s the conundrum.” The devastation inherent in sudden cardiac death is its unexpected and abrupt onset. In a moment, without warning or indication, seemingly healthy people can fall dead. Steven Mark Gootter was one such victim, a vibrant and athletic 42-yearold man. On Feb. 10, 2005, he woke early as usual and took the family dog for his morning jog. Gootter, a nonsmoker with no history of heart disease and no prior warnings, died of heart failure. In his memory, Gootter’s family began the Steven M. Gootter Foundation, with a mission of both research support and public education regarding sudden www.BizTucson.com
cardiac death. “The foundation’s mission is to prevent sudden cardiac death and to find a cure for this insidious disease,” said Gootter Foundation President Andrew Messing. “We need to make people aware of how common sudden cardiac death is. Every now and then you hear of a celebrity. But it’s happening every day to men, women and young people around us.” Remembering Gootter as a “people magnet,” family man and entrepreneur, the foundation set its sights on raising money to support research. In March, after seven years of fundraising, the Gootter Foundation reached its goal of $2 million to establish the endowed chair.
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Dr. Tardiff has the drive and the passion and the intellectual prowess to really make a difference in sudden cardiac death research.
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– Andrew Messing, President Steven M. Gootter Foundation
“The foundation feels really lucky and fortunate that the Sarver Heart Center found Dr. Tardiff. She is really perfect for the position,” Messing said. “Dr. Tardiff has the drive and the passion and the intellectual prowess to really make a difference in sudden cardiac death research. We really couldn’t have found a better candidate.” Dr. Fernando Martinez, director of the BIO5 Institute and the Clinical and Translational Science Institute, said Dr. Tardiff ’s strengths as a physician scientist represent an increasingly critical aspect of academic medicine. “Dr. Tardiff ’s work as a cardiologist
has made her innately aware of how tragic sudden cardiac death is. Therefore, she decided as a scientist that she will find a cure for those cases caused by rare genetic mutations. Her background allows her to apply her research in a clinical setting, and work collaboratively with experts in related fields here at the UA, which has already facilitated success towards this important endeavor.” While Tardiff said it’s her long-term goal to establish the southwest’s first HCM clinic at the UA, the university has been a fruitful place for her research from day one, thanks to the Gootter Foundation’s support. “The bottom line is having that sort of support behind me gives me freedom, especially at a time when the NIH is contracting. What the endowed chair means to me is I have funds set aside to walk out on the edge and that’s where the great stuff is going to be done,” she said. “Having this sort of support lets me be as creative as I can possibly be. It allows me to take intellectual risks and that’s where this disease needs to go.” Tardiff ’s research approaches HCM from the biophysical side, seeking to understand the relationship between genetic mutations and cellular mechanisms in damaged hearts – and why not every outcome is the same. “There’s no obvious reason why mutations or changes should cause such a complex and often devastating endpoint. The genotype link to the phenotype is not a straight line,” she said. “The challenge we all face can be boiled down to one problem – we cannot at this point in time, for most of these mutations, decide or predict what will happen to the patient based on the genetic determinations. This is a catastrophe because it limits what we can do when we identify these patients.” Scientists have known about the genetic drivers of HCM for 20 years, but the disease’s complexity has made for slow progress and humbling research. “The opportunity to do good, to really make a difference, is high. Once we can start using these genotypes to tell people what their endpoint will be, then we can develop therapies to help push that endpoint off, to prevent episodes,” Tardiff said. Currently, people from families with multigenerational sudden cardiac death can be identified as high risk, often as children or adolescents. But the maincontinued on page 34 >>> Winter 2013 > > > BizTucson 33
BizMEDICINE continued from page 33 stay treatment is an implantable defibrillator, which is expensive and hardly a panacea. “We know this disease is progressive,” Tardiff said. “These big, misshapen hearts happen over time. If we understand this early process, maybe we can change the natural history of the disease instead of saying ‘Here’s your defibrillator, good luck to you.’ ” HCM is a profoundly complex disease. Family members with the same genetic mutation might have hearts that look different. The key for researchers like Tardiff will be coming up with early diagnoses and learning how the disease progresses. “We’re getting to the point where we’re asking the right questions. The science, the whole field, is getting more focused. There’s a lot of enthusiasm about what we can do when we identify people before the end stages of the disease,” Tardiff said. “What’s held us back until this point is that the disease is so progressive, so it depends on when you look. Snapshot science in cardiology is a difficult thing. What the heart looks like today may be very different five years from now and it makes the disease challenging.” Scientists have identified more than 1,000 different HCM mutations and Tardiff ’s own specific focus is on a particular subtype in which the genetic mutations don’t lead to enlarged hearts, yet the incidence of sudden cardiac death remains high. “It isn’t just the link between having a huge heart and sudden cardiac death,” she said. “This subset is not as obvious and I thought it was very interesting from the beginning. Why that disconnect? To my mind what that meant is there is a cellular process we’re missing – and that’s something I’ve spent the last 15 years trying to understand.” Bringing Tardiff to the UA was a huge win for Martinez and Dr. Gordon Ewy, director of Sarver Heart Center. She admits it wasn’t an easy recruitment, but that at the UA she sees unique opportunities and the potential for a great HCM clinic. “I found in talking to people here a true sense of adventure,’’ Tardiff said. “In many places now, because of NIH funding there’s a retrenchment. But no one here is really interested in standing pat right now. That’s energizing.”
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BizHONOR Ginny Clements Chairman of the Board Golden Eagle Distributors
Honoring
Ginny Clements PHOTO: CHRIS MOONEY
By Gabrielle Fimbres
36 BizTucson < < < Winter 2013
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L. Clements Breast Cancer Research, with the goal of eliminating breast cancer through research at the University of Arizona Cancer Center. “Having a philanthropic donor like Ginny is essential,” said Joyce Schroeder, who is conducting research on a drug that appears to block the growth and metastasis of breast cancer cells. “The preclinical work wouldn’t be happening if it were not for Ginny.” Ginny and Bill Clements met in San Francisco, where the two were neighbors. A whirlwind romance ensued, and Bill proposed marriage 2½ weeks after they met. They married in 1966 and moved to Phoenix the following year. Bill’s father owned a distilled spirits company, and he wanted his son, who was a chemical engineer, to take over. Their two children, Christopher and Kimberly, were born in Phoenix. In 1974, the family moved to Tucson to start Golden Eagle Distributors – the local distributor of Anheuser-Busch products. In Tucson, the Clements formed a strong bond with the Gootters. Chris Clements and Claudine Messing attended St. Gregory College Preparatory School together. Bill Clements gave Steve Gootter his first job, working as a Budweiser representative at the UA, where he was a student. But in 1994, Bill Clements was diagnosed with cancer, and died just 10 weeks later. “My children had just joined the business,” Ginny Clements recalled. “We buried Bill and I said, ‘I have a business to run.’ ” She said her faith pulled her through. “My mother taught me to always trust in God and everything would be OK.” For eight years, Clements led the business, and she remains chairman of the board. Kimberly Clements is president and secretary/treasurer of Gold-
en Eagle and Chris is vice chair of the board and CEO. “They are good business partners,” Clements said. “I’m very proud of the children.” David Sitton met the Clements family when he landed a gig in the marketing department at Golden Eagle in 1979. Their friendship has endured throughout the years. “When Bill passed away, Ginny and her children had to fill some pretty big shoes,” Sitton recalled. “They are absolutely carrying on the business, the spirit of philanthropy and Bill’s legacy. It’s not easy to take a thriving business and maintain or accelerate its success – and that is what they have done.” Ginny Clements has again found love, marrying Tom Rogers three years ago. “We are very much in love. We travel. I go to car shows with him. He comes to fine arts events with me. We love basketball – the Cats and the Suns.” She treasures the time she spends with grandkids Gracie, Colt, Preston, Brian, Emma and Rilan. “I just like being with them and holding them and kissing them. I am not the old-fashioned grandma, but I love being with them.” She said the Gootter award is very meaningful. “We have known the Gootters more than 30 years. I am honored to receive the award, from one family to another.” Chris Clements, who is also president of the board of the family’s philanthropic Wings Like Eagles Foundation, said, “When the Gootter Foundation was formed, we immediately offered our assistance – and we’ve never wavered.” “Philanthropy is the cornerstone of everything we do,” he continued. “My mom and dad instilled in us the principles of servant leadership in our busicontinued on page 38 >>>
Next Generation of Researchers As the nephew of Steven Gootter, Drew Messing set about a task close to his family’s heart during his third-grade science fair project. Drew, a student at Castlehill Country Day School in Tucson, researched whether children could effectively perform the compression-only CPR method that is now recommended. He enlisted the help of Castlehill classmates – and asked for guidance from Clint
Drew Messing practices a
McCall and Melissa Ludgate from the University of Arizona Sarver Heart Center to teach the proper technique. After instruction, most of the thirdthrough fifth-grade students were able to reach the goal of 100 compressions per minute. Drew went on to win first place in biomedical exhibits at the Southern Arizona Regional Science and Engineering Fair.
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compression-only resuscitation method.
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Photo courtesy of Castlehill Country Day School
Ginny Clements is out to conquer the world. This fireball of a philanthropist and businesswoman has faced more than her share of challenges along the way. She survived breast cancer at age 15 and the death of her beloved husband, Bill, from lung cancer. After Bill died in 1995, Clements was faced with the daunting task of running the family business – Golden Eagle Distributors – with her fresh-out-of-college kids. She learned the business from the ground up, and built it into the thriving corporation it is today. Through it all, Clements has carried on her husband’s legacy of making the world a better place through philanthropy. “Bill used to say to me and my children – as long as we have enough to live on, we must take care of other people,” Clements said. “I think he’s smiling up there. I think he’d say job well done.” Well done, indeed. Clements is being honored by the Steven M. Gootter Foundation with its 2013 Philanthropic Award, to be presented at the Gootter Grand Slam dinner March 16. The foundation is dedicated to defeating sudden cardiac death by supporting increased awareness, education and scientific research. It was formed to honor Gootter, a young Tucson father who died from sudden cardiac death in 2005. “Ginny is a very special person to our family,” said Claudine Messing, Gootter’s sister and VP of the Gootter Foundation. “The Clements family is a model of giving – not for the recognition but because it’s the right thing to do. They have a generosity of heart and spirit.” In addition to supporting the Gootter Foundation, Clements founded Ginny
BizHONOR
continued from page 37 ness and in our community. But, really, much of what we do comes from our faith – that our good fortune is a gift and should be shared and lifted up.” Clements said he and his sister are proud of their mom. “I don’t know if we ever realized what an impact our dad had on so many in the community. When he passed away, I can remember so many people coming to my mom for help for things she didn’t even know about – people coming out of the woodwork. It was overwhelming for her and took some time to work though. “I think she’s taken what she and dad began in the community and has built upon it – making breast cancer research a priority at the UA with her own fund and encouraging Kimberly and me to broaden our philanthropy throughout the state with the Wings Like Eagles Foundation. She’s a great example to many women in the community who have faced adversity – the death of a spouse or a loved one – and turned it into an opportunity for grace, for good works. “I think that’s probably why this award is ultimately so meaningful,’’ he continued. “The Gootters have faced an unfathomable tragedy and are making certain that Steven’s name and who he was and what he stood for are not forgotten – while bringing attention to a frightening cause of death – sudden cardiac death. I can’t think of a greater honor for my mom.’’
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8TH ANNUAL 2013 GOOTTER GRAND SLAM DINNER Saturday, March 16, 6:30 p.m. Westin La Paloma Resort & Spa $175 per person PRO-CELEBRITY TENNIS EXHIBITION Sunday, March 17, 10 a.m. The Lodge at Ventana Canyon Featuring the Bryan Brothers, the top doubles team in the world, tennis great Murphy Jensen and UA Football Coach Rich Rodriguez. $45 ($50 at the door) 615-6430 or www.gootter.org 38 BizTucson < < < Winter 2013
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www.BizTucson.com
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BizEVENT
All Pro Old Pueblo
Grand Prix Race supportors and sponsors from left – Mayor Jonathan Rothschild, City of Tucson; Sarah Swanson, Old Pueblo Grand Prix race director; Michael J. Duran, VP & chief development officer, Tucson Medical Center; Marc Fleischman, shareholder, BeachFleischman; Jim Click, president, Jim Click Automotive Team; Willie Joffroy, owner, Willie’s World Cycling; Erica Allar, 2012 Individual Champion of the National Criterium Calendar, USA Criterium Championship Series; Kipp Metzger, owner & CEO of Animal Health Hospital; Kurt Kroese, partner, Velolaw, Biaggi & Kroese; Michael Keith, CEO, Downtown Tucson Partnership; Kurt Rosenquist, Old Pueblo Grand Prix co-producer & owner, Fitworks Cycling Support; Ross Rulney, owner, Julian Drew Block; Susan Frank, Old Pueblo Grand Prix co-producer & owner, O2 Modern Fitness. 40 BizTucson < < < Winter 2013
PHOTO: CHRIS MOONEY
By Steve Rivera
If it’s true that speed thrills, then Downtown Tucson will make for some jaw-dropping, competitive and highspeed times with the return of a newand-improved Old Pueblo Grand Prix. It’ll be fast and furious as the race gets underway on March 9. This is the first event on the National Criterium Calendar for the 2013 season. The event is sanctioned under USA Cycling
“This will further secure us as a destination for cycling,” Trinidad said. Rosenquist said the overall hope is to have the OPGP as a regularly scheduled event for Tucson, much like the El Tour de Tucson. Tucson recently was named Outside Magazine’s No. 1 bike town in the nation. And although the designation may have been more for the long-distance
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Throughout the years, speed racers or long-distance riders have enjoyed Tucson’s climate for training. It’s no different with speed racers. “The OPGP Criterium is the perfect event for professional cyclists to experience Tucson and the downtown area,” said Trinidad. “I firmly believe that a showcase event such as the OPGP can become a
This will further secure us as a destination for cycling. – Vince Trinidad, Director, Tucson Sports, MTCVB
and is the only NCC-sanctioned race in Arizona. This year – unlike the past couple of years – the event will limit participants to men and women who are Level 1 pro racers, cycling as fast as 35 miles per hour around the downtown course. The event will take approximately four hours. “We think with so many high-quality racers we’re going to bring a great energy to downtown,” said Kurt Rosenquist of Fitworks Cycling Support. “We started off as a local event, but now we’ve taken it national.” It’ll have everything an event needs – impact, speed, elite athletes and a crowd that’s expected to be five-deep on the downtown course. “Showcase events such as this are not only great for our community but also highlight cycling as one sport that Tucson hosts well,” said Vince Trinidad, director of Tucson Sports, a division of Metropolitan Tucson Convention & Visitors Bureau. Trinidad’s Tucson Sports is scheduled to conduct an economic impact study on the event. Organizers said as many as 8,000 spectators line the streets and that businesses and restaurants have benefitted from the event in the past. “We expect a positive impact,” said Rosenquist. Optimism abounds because it’ll be about the participants and the fans who will watch them in a city that loves – and admires – bicyclists from all over the world. www.BizTucson.com
riding variety, it’s bicycling nonetheless and much appreciated, too. “This nationally recognized sporting event reflects Tucson’s well-deserved reputation as a training destination for athletes of all kinds – a bicycle-friendly community and a great city to live in for active people,” Mayor Jonathan Rothschild said in a letter showing his support for the event.
OLD PUEBLO GRAND PRIX DOWNTOWN TUCSON Saturday, March 9 3 p.m. Kids’ Race & Bike Parade 4 p.m. Women’s Pro/Elite Race 5 p.m. Cruiser Drag Races Halftime Show 5:45 p.m. Top Pro Men’s Race Other highlights: • Bicycle/Sponsor Expo • Beer Garden & Food Carts • VIP Hospitality Area • Raffle for Road Bike • Health & Wellness Booth • Watch athletes compete for $23,000 • Free admission for non-VIP spectators • Free parking • Event ends in time for Second Saturday Call 520-623-2245 for VIP package www.oldpueblograndpix.com
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Tucson signature event with continued community support. “The longer showcase events are hosted in our community, the more we as a community should embrace and support not only the event but the event organizers. Our Tucson event organizers are the key in a Tucson signature event. They pour their heart and passion into these events so that not only athletes can enjoy them, but the community is enriched by their endeavors.” Rosenquist and Susan Frank of O2 Modern Fitness are doing their part. Frank said the appeal is much like watching professional soccer, football or basketball. The spectators are coming out to see the best of the best in speed cycling. “People like to see the unbelievable competition and get excited to see what these people do best,” Frank said. “It’s an experience just to see these people compete. “Maybe it’ll inspire them to go out on their own bike – and not necessarily to become a pro. It’ll inspire them to see a cycling pro much like a Little Leaguer is inspired to see an Arizona Diamondback.” In addition to the men’s and women’s pro race, there will be an open-to-thepublic 200-yard bicycling “drag race” and a children’s race. “We’re just upping the entertainment value,” said Rosenquist. “When we created this we were hoping to motivate the community residents to get out there.” Biz Winter 2013 > > > BizTucson 41
PHOTO: CHRIS MOONEY
BizMEDIA
Proactive News Approach By Christy Krueger
Cathie Batbie-Loucks, News Director, KVOA Bill Shaw, President & GM, KVOA 42 BizTucson < < < Winter 2013
KVOA News 4 Tucson is reaping the rewards of strategy and management changes – including advancements in technology, more community involvement and a proactive news approach. On top of that, recent ratings put NBC in the No. 1 slot nationally – a big plus for this local network affiliate. Bill Shaw joined KVOA as president and GM in early 2010, taking over for Gary Nielsen, who’d been in the position since 2002. Shaw is also responsible for corporate negotiations as senior VP of Cordillera Communications, a broadcasting group that includes KVOA and a dozen other TV stations in 11 markets. Shaw’s previous media stints include Petry Television in Chicago and in New York. He also worked for Tribune Broadcasting and ran WGN-TV. He described the move to Tucson from the big cities as “bizarre.” New York is glamorous, he noted, but the
events. He was instrumental in keeping the World Golf Championships Accenture Match Play Championship here by helping with marketing, participating in ticket sales and running public service announcements. Irvin considers Shaw not only a friend, but a confidant, a leader and a great supporter of local efforts. “He is exceptionally bright, engaging, creative, dogmatic and simply knows how to make things happen. He leads by example – so it is no wonder that the folks over at KVOA are involved in so many different community events as well,” Irvin said. Automotive group owner Jim Click knew right after meeting Shaw that he would do good things for Tucson. “I don’t think Bill was in town for a week before he started calling all of his customers and Tucson business leaders to find out what’s important to our community,” Click recalled. “I have never
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“My immediate change as news director was making sure we’re doing more for the community,” BatbieLoucks said. “We would always report, but didn’t always make a difference, even though we have the ability to with our big mouth.” The station’s drowning prevention campaign is one example. Previously, KVOA ran stories about the issue and offered suggestions such as buying safety devices. “But we didn’t really do anything to prevent drowning,” BatbieLoucks admitted. “We started to give away CPR classes, swim lessons, we gave away pool fencing. That’s how we’ve grown – helping to solve issues.” KVOA staff members have aided other Tucson area causes by collecting and distributing donations, often through the station’s Kristi’s Kids reports, a weekly program hosted by news anchor Kristi Tedesco. She and her co-workers have helped keep city
My immediate change as news director was making sure we’re doing more for the community. – Cathie Batbie-Loucks, News Director, KVOA
long commutes were not. “This market is very hospitable, and I made many friends.” One is commercial realtor Mark Irvin. “Mark called the day I arrived. Then I was in a meeting at La Encantada. Mark was there and I got to know him. Now we’re very good friends.” After settling in, Shaw didn’t want to make changes too fast. “I waited two or three months, and I didn’t try to change it to a WGN-type station. Gary Nielsen had many things in place. Then I built on that.” Shaw saw Tucson was a huge volunteer community, and decided to move the station into a more community-centric mode. Personally, he works with the Boys & Girls Club of Tucson, American Heart Association, Toys for Tots and Community Food Bank – and he encourages the news personalities to help with their www.BizTucson.com
met a national organization owned by a major corporation that reached out to the community like Bill has. He’s the best.” A year after his arrival, Shaw promoted Cathie Batbie-Loucks to news director. At that point, she’d been with KVOA for 12 years in various management positions and as associate producer. KVOA’s been delivering news in Southern Arizona for more than 50 years. During her early years at the station, Batbie-Loucks worked with Savannah Guthrie, now co-host of NBC’s Today Show. She said she learned a lot from Guthrie. “She was a great teacher. She’s a lovable gal and we’re proud of her.” As Shaw and his news director started working together, they realized they saw eye-to-eye on the importance of increasing the station’s visibility and that of its personalities.
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pools open, provided clothing and food to shelters though Season 4 Hope, and partnered with banks and credit unions for the Tucson Together Fund to support victims of the January 2011 shootings. Batbie-Loucks enjoys civic volunteerism by helping such organizations as the American Red Cross and its Real Heroes Awards, which recognizes citizens for doing good deeds. She’s involved with the station’s school supply drives, and she’s most proud of the award-winning Kristi’s Kids, which she started with Tedesco. “It’s my pride and joy,” Batbie-Loucks said. As news director, Batbie-Loucks looks for ways to better the newsroom by paying attention to all facets of news delivery. “We ask what stories can we tell that are important to the community, what issues can we get involved continued on page 44 >>> Winter 2013 > > > BizTucson 43
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NBC is now No. 1 – up 17 percent to 23 percent in the first four weeks of the fall season. To go from last to No. 1 this quickly is impressive. – Bill Shaw, President & GM, KVOA
continued from page 43 with to make changes. We try to improve graphics and we research what’s the next big thing in Tucson.” “She has boundless energy, is very bright and has a can-do attitude and good attention to detail,” Shaw said. One of the technology-driven changes that Shaw and Batbie-Loucks have embraced is SkyNet, a system of cameras set up on surface streets to monitor traffic slow-downs, collisions and road flooding. “SkyNet has been a big advantage,” Batbie-Loucks said. “It’s great for beau-
44 BizTucson < < < Winter 2013
tiful weather shots, traffic issues, breaking news stories and for monsoons so people can re-route in a different direction.” On the more personal side of her experiences at KVOA, Batbie-Loucks embraces the friends she’s made through the station, including long-time meteorologist Jimmy Stewart, who retired in May 2011. “My favorite newscast was that night when he said goodbye. Sending Jimmy off was my first big project. This place is family – that’s why I’ve stayed so long. These are good people and I have a fan-
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tastic news team working with me.” She complimented Shaw for his hands-on work since taking the reins at KVOA and the positive results he’s helped to achieve. He also understands how the station’s standing is affected by network ratings and industry transactions. “The best news was when Comcast took over NBC, which since 2008 languished at No. 3 or 4,” Shaw said. “NBC is now No. 1 – up 17 percent to 23 percent in the first four weeks of the fall season. To go from last to No. 1 this quickly is impressive.”
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Photos: BalfourWalker.com
BizRETAIL
George Fangmann Owner, George’s
A New Beginning By Pamela Doherty After 52 years of selling men’s attire in Tucson, Franklin’s clothing store shut its doors in June. But owner George Fangmann is hardly out of business. “It was time for a new beginning,” Fangmann said. Fangmann operated the centrally located Franklin’s at the Plaza at Williams Center for almost 20 years. In October, he launched George’s, his fresh rendition of a men’s clothing store, now situated in the foothills at Skyline and Campbell. “I had the opportunity to reinvent and I took it,” he said. According to Fangmann, Franklin’s enjoyed the highest volume of sales in its history in 2007, and when the economy fell into a tailspin, so too did the shop’s revenue, dropping precipitously over a four- year period. When financial backing and the availability of a choice new site fell into place at the same time, Fangmann said it took him “about a minute to decide” before he bounded forward. 46 BizTucson < < < Winter 2013
“A specialty clothing store is a dying breed, because the department stores and national chains make it difficult for a smaller retailer to compete,” he said. “Although I liked the location and my landlords were absolutely great, we would have not survived if we stayed in the same place any longer.” In fact, the new venue – about half the size of the former Franklin’s – has already attracted clientele from area resorts, expanding Fangmann’s customer base. Fangmann teamed up with a branding agency out of San Francisco and local architects Jay Hanson and Michael Franks of Seaver Franks, who created the design concept and equipped the space in just 90 days. “By using certain lighting, fixtures and furnishings we’ve tried to create an environment that people see as something different,” said Fangmann, who describes the feel of the store as “Frank Lloyd Wright meets New York.” www.BizTucson.com
“My vision has always been about traditional men’s clothing,” Fangmann said. “Now we have a chance to go back and do what we do best – and that is to provide personal attention and distinguished men’s wear that sets us apart in the market.” George’s customer service includes wardrobe consulting, which is essential, Fangmann said, because “the Wall Street gray power suit is now obsolete for the social setting.” Fangmann said he still dresses men for work, but more often he provides sophisticated clothing for other occasions, not to mention his advice. Fangmann will take half a dozen buying trips to New York, Los Angeles and Las Vegas to procure merchandise for his store this year. George’s has exclusive arrangements with several American designers and carries other luxury apparel, as well as luggage and accessories, from Europe. Still, Fangmann admits that leaving Franklin’s behind was not an insignificant decision, as his ties to the business go back to his freshman year of college. Not long after Fangmann arrived from New Jersey to attend the University of Arizona in 1967, he was hired on at a Franklin’s location near campus. After graduation, Fangmann headed back east to work
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in the family business. Eventually he returned to Tucson at the request of the store owners, who made him a partner and brought him on to manage a fourth location. In 1993 the Franklin’s partnership disbanded and Fangmann formed a new corporation to keep the Williams Center location and remain the sole owner of the business, which had included investments from “several prominent local businessmen and one famous coach,” he said. “The key to success is to know your customer,” said Fangmann, who says his clientele ranges from men ages 35 to 70 years old. Also critical is to recognize that women, who have so far accounted for approximately 40 percent of sales at George’s, are an important factor in decision making. “Over the years, there has been a definite shift in the amount of influence women have on men’s purchases,” he said. “Wives and girlfriends want men to find their look – and believe me, it’s never where they are, because so many guys are stuck where they were. A woman looks at a man and sees his potential. And that’s where I come in. We offer a classic style with a contemporary look – away from the ’80s and into the 21st century.” Biz
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BizLEADERSHIP
Agent of Change
Ann Weaver Hart scoots across the University of Arizona campus in a golf cart, caught up in a wave of students hustling to their next class. As she makes her way to an appointment at the College of Science, this newly inaugurated 21st president of the university stops to greet faculty, and chats with students in a crowded elevator. Hart is in her element, overseeing this top research university of 40,000 students and more than 12,000 employees. Her challenge is to help the university grow and thrive in a rapidly evolving world – with dwindling state resources, technology that moves at the speed of light and tough competition. “It’s a very exciting time to really have an impact,” said Hart, 64. “The world around us has shifted in a way that presents tremendous opportunity for great universities to be more embedded in all activities in our lives.” Among her top challenges – strengthening biomedical programs, growing partnerships with industry, improving graduation rates and building a health sciences leadership team that will set national standards in academic medicine. Hart, who served as president of Temple University for six years and president of the University of New Hampshire prior to that, was drawn to UA’s strengths and its challenges. “The University of Arizona is widely known as one of the top centers of the physical, optical and space sciences in the world,” she said. “We are also widely known for tremendous arts and humanities programs. “I had previously come to appreciate and enjoy the central role of landgrant universities because of my experience in New Hampshire. With that and medical science, the UA offered the best of all worlds in research public higher education.” After her appointment, folks from the UA library presented Hart with a gift – a framed collection of the school’s presidents throughout history, dating back to the 1880s. A portrait of Hart in a stunning red suit sits atop black-andwhite photos of her 20 predecessors, making a striking contrast. Hart serves as the first woman president in the school’s 127-year history – a fact that, while significant, does not define her. “I have been the first woman in many of the positions I have held,” Hart said. “I’m thrilled and excited for other women. I am the mother of four daughters, so obviously I have a stake in the future, but it isn’t a defining part of my character.” Having survived her first desert summer after arriving in July, Hart said she and Randy Hart, her husband of 44 years and a retired attorney, are already dug in. “What a drop-dead gorgeous monsoon we had,” Hart said. “We live near the Santa Catalina Mountains, and the storms and the sunshine and the sunsets and the moon – we feel like we’ve come home.” In her nearly six months on the job, Hart has become embedded in local organizations, including the Arizona State Board of Education, Campus Re48 BizTucson < < < Winter 2013
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Photos: BalfourWalker.com
By Gabrielle Fimbres
Ann Weaver Hart President University of Arizona Winter 2013 > > > BizTucson 49
BizLEADERSHIP search Corporation, Southern Arizona Leadership Council, Tucson Regional Economic Opportunities, UA Alumni Association, UA Foundation and the Udall Foundation. She understands the critical role the university plays in boosting economic development through the spin-off of new companies and partnerships with industry. Among Hart’s first presidential tasks is the selection of three key health sciences leadership positions – the CEO for the nonprofit University of Arizona Health Network – Dr. Michael R. Waldrum from the University of Alabama will assume this post in January – plus a new director for Arizona Cancer Center and a senior VP for health sciences. “Those three people are going to be leaders in one of the most important disciplines at the university and in America,” Hart said. “The structure is new. The board is new, with tremendous opportunities during a period of real uncertainty and change with the national and state healthcare environment. “It is our biggest opportunity and our greatest peril,” she added. “The financial, social and cultural risks are huge.” Boosting biomedical research at UA is among her top goals. “We are among the leaders in the world in the physical and life sciences, other than biomedical. We are about average in the United States in our research in medical. We
have a tremendous opportunity here.” She is enthusiastic about the recent appointment of David Allen as founding executive director of Tech Launch Arizona, a technology commercialization center aimed at moving knowledge and inventions developed at the UA to market. “The future for great universities like the University of Arizona is going to be increasingly interdependent with the application of the knowledge that is generated here to human existence and life,” she said. “Being able to take those new discoveries and turn them into something that is actually applied to the way we live is critical.” Jack B. Jewett, president and CEO of the Flinn Foundation, said Hart has “demonstrated a keen sense of understanding and recognition of the importance of what Arizona is striving to accomplish in the biosciences. “During her first weeks in office, she eagerly accepted the Flinn Foundation’s invitation to speak to a group of 100 statewide bioscience leaders, and was spot-on in her comments about the role of UA and the importance of Arizona’s bioscience ambitions from both research and commercialization perspectives,” he said. Ron Shoopman, president of SALC, said Hart outlined for members of that organization how she and the university can partner with business leaders to create prosperity for the region. “The University of Arizona is a criti-
cal and significant driver of economic development in our region,” Shoopman said. “Tech Launch Arizona promises to be a powerful new economic development tool. SALC members were extremely impressed with the vision and commitment of President Hart in creating prosperity for Tucson and Southern Arizona.” Growing connections between the university and industry is critical, Hart said. “So many great businesses in Southern Arizona are related to academic strength at the university – Raytheon, Honeywell, Boeing. Ventana Medical Systems grew from the knowledge that was developed here at the UA,” she noted. “All of those activities give us an opportunity to learn by doing – but to also have research partnerships and economic development. It’s really a twoway street. We create knowledge. They use it. It is a partnership that is very important to us.” Mara Aspinall, president of Ventana Medical, predicts Hart will build a stronger higher education system, which will build a stronger economy. “With Dr. Hart’s track record of successful leadership in higher educational institutions and her interest in promoting STEM education at the primary and secondary levels, she is the ideal leader to help the UA realize its vision of partnership with Arizona’s growing biotech industry,” Aspinall said. Taylor Lawrence, president of
UA President Hart family photo from her inauguration from left: Emily Hart Hayes, Liza Hart Dunn, Ann Weaver Hart, Randy Hart, Allyson Hart, Kimberly Hart Baker 50 BizTucson < < < Winter 2013
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Raytheon Missile Systems, said Hart “brings strong knowledge of what it takes to run a large, complex research university. “We’ve enjoyed many years of collaboration and partnership with the UA – and we expect that relationship to expand and grow under Dr. Hart’s leadership,” Lawrence said. The UA is also charged with improving K-12 education. “Our College of Education has tremendous teacher education and research and leadership programs,” Hart said. “We bring the superintendents of Southern Arizona school districts together with us at UA to share ways in which we can work together better. Ronald Marx, dean of the College of Education, said Hart “brings wisdom and experience to her new role as president of UA. “She has learned that great universities are more successful when they partner closely with government, nonprofit and corporate sectors,” Marx said. “She knows that all great cities have great universities, and that higher education contributes to economic, cultural and civic vitality. She is a terrific leader and a great educator – and for a bonus for us in the College of Education, she is a professor in one of our departments.” Hart’s roots in education run deep. She grew up in Salt Lake City “long enough ago that it wasn’t the expectation necessarily that women would go to college, let alone have a career,” she said.
“My parents always made it very clear that regardless of what I did with my life I was expected to be an educated person.” Her mother was a dietician and a full-time homemaker who later became an elementary teacher. Her dad was a physicist who abandoned that career to join the family fur business. Did Hart dream of one day being a university president? “Oh my goodness no. When I was a young woman I was expected to be, and thought I would be, a full-time homemaker. Teaching was the job my mother told me I should pursue so that if anything ever happened to my husband I would have something to fall back on.” She started teaching right out of college, and after her fourth daughter was born, she pursued graduate school. Hart received a master’s degree in history and a doctorate in educational leadership. She quickly rose up the ranks, from teacher to junior high principal to university professor. “The presidencies just sort of evolved out of opportunities and discussions with mentors who seemed to think it was something I should consider,” Hart said. Hart is focused on strengthening UA’s position as a top research university while growing the institution, in part through distance learning. “As Southern Arizona grows, we need to increase our capacity to provide access to a world-class education.”
She embraces UA’s mission. “As a landgrant university, UA will have a lasting and statewide impact on economic and cultural development.” Shane Burgess, dean of the College of Agriculture and Life Sciences, said Hart “brings a true interest in ensuring that we are the most relevant we can be for the 21st century. “She has a strong understanding of the inherent and fundamental value of the land-grant universities to the United States’ continued economic success and national security,” he said. Athletic Director Greg Byrne said Hart “has already brought tremendous energy to the university as she develops her overall vision for the university during her tenure and beyond. She has been very supportive of athletics. We are often the front porch for the university for a lot of folks.” Rick Myers, a member of the Arizona Board of Regents who helped lead the presidential search committee, said Hart has a strong record of transforming universities. “We have so many challenges – but at the same time we have so many opportunities,” Myers said. “Not only is Ann good at creating a roadmap, she is very good at making decisions to start executing that roadmap and getting people engaged and moving forward. “Ann is exactly the right person at the right time to help the University of Arizona create the future that we deserve,” Myers said.
Biz
Anatomy of a Presidential Search By Gabrielle Fimbres
Selecting a new president for a major public research university is no simple task. So Rick Myers, an Arizona regent who co-chaired the committee to select the new University of Arizona president, turned to the experts for advice. “I talked to a number of the senior university presidents around the country – Stanford, the University of Michigan, Virginia,” said Myers, who headed up the committee with former U.S. Sen. Dennis DeConcini. “I asked them what we should be looking for as we bring a new leader into this organization – and every one of them said UA is a jewel that is truly one of the nation’s important public research universities,” Myers said.
“But they also said that being able to manage change is absolutely the number one attribute that you want to find in the next leader,” he continued. “You want somebody to come in who will shape and evolve the organization to be great in the future.” The committee reviewed applications from hundreds of candidates from around the world over six months. Hart emerged as a leading candidate. “The fact that Ann had been a university president twice before was very positive. She had demonstrated success at both the University of New Hampshire and at Temple in terms of creating real change.” The committee wanted hard data. They examined goals the Arizona Re-
gents had set – increased graduation rates, access to more students, growth in research. “We took those metrics and we looked at a number of the candidates – where their institutions were when they started that job and where those measurements were at the end. “The thing that really impressed us about Dr. Hart more than anyone else is that she showed real change,” Myers said. “The numbers moved. The ball went down the field. It showed us that this is someone that doesn’t just have great ideas – but someone that has actually created real, positive change. We knew she would be ready to hit the ground running and start making a difference on day one.”
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PHOTO: CHRIS MOONEY
Leah Gomez Production Manager SynCardia Systems 52 BizTucson < < < Winter 2013
BizMEDICINE
SynCardia Ready for Prime Time By Gabrielle Fimbres “The Artificial Heart is Here.” That headline on the cover of LIFE magazine in September 1981 seemed to solidify the artificial heart’s spot in medical history. But it would take the tenacity and the vision of three University of Arizona scientists – Dr. Jack Copeland, Dr. Marvin Slepian and Richard Smith – and overcoming a series of corporate disasters to get the artificial heart to where it is today – poised to save the lives of thousands around the world each year. Tucson is the international headquarters of SynCardia Systems, the manufacturer of the world’s only approved total artificial heart. With recent developments in technology, the company is saving more lives, expanding its reach around the globe and finally making money. Not bad for technology that nearly went belly up countless times over the past four decades. “SynCardia, which has been in Tucson since 2001 and doing interesting and good work but on a very small scale with no profitability and no real growth, has suddenly become a readyfor-prime-time business worldwide,” said Michael Garippa, chairman, CEO and president of SynCardia. A new, smaller, portable driver that powers the device is allowing more patients to receive the artificial heart. And a scaled-down total artificial heart – expected to be in use by the end of next year – will save the lives of smaller patients, including more women and adolescents. Garippa said it is likely SynCardia – which has 65 employees at company headquarters near 22nd Street and Kino Boulevard – will be bought by a www.BizTucson.com
larger company. But he believes SynCardia will remain in Tucson. “SynCardia will be a Tucson company,” Garippa said. “There is a lot of expertise and know-how here. We run a very low-cost facility with excellent employees and very little turnover. We have great access to talent and a great university relationship. This is not something that gets made in China.” The SynCardia Total Artificial Heart is used in the sickest of patients – those dying from biventricular heart failure (both sides of the heart). Since inception, it has been implanted in about 1,100 patients worldwide – the youngest 13, the oldest 76. When all other treatment options fail, the human heart is removed and the temporary total artificial heart is
“
I thought I wanted to be a doctor, but I found SynCardia. I was just overwhelmed by the purpose. We come to work and we save lives.
”
– Leah Gomez Production Manager, SynCardia
implanted. An external driver, connected to the patient by two tubes called drivelines, powers the heart with pulses of air and vacuum while the patient waits to receive a donor heart – with an average wait in the United States of six months. The longest anyone has been on the total artificial heart is 1,374 days. But with only 36 external drivers in the world, SynCardia was limited as to how many people could be helped. Until 2010, patients in the U.S. remained in the hospital tethered to Big Blue, the cumbersome, 418-pound driver that pumped the heart. But ground-breaking – and life-changing – technology now allows patients to go home to wait for transplant, with the heart powered by Freedom, a 14-pound driver worn in a backpack. One man hiked 607 miles while waiting for his donor heart, thanks to the Freedom. Another plays the saxophone at his church. The ability for patients to go home while awaiting transplant reduces their risk of infection, boosts quality of life and saves hospitals and insurance providers – in some cases – millions of dollars per patient. Garippa expects sales to grow exponentially, at a time when 100,000 people in the U.S. suffer from end-stage heart failure. Before 2010, only about 60 patients worldwide each year received the total artificial heart. But thanks to the Freedom – and a new 40-pound in-hospital driver called Companion – about 120 total artificial hearts have been implanted this year. SynCardia expects 200 patients to receive a total artificial heart in 2013 and eventually 3,000 or more a year. continued on page 54 >>> Winter 2013 > > > BizTucson 53
BizMEDICINE continued from page 53 By 2017, 400 hospitals are expected to be implanting the device, compared to 76 today. While it’s impossible to know the future, the technology could advance to the stage where the artificial heart is powered internally, and patients could remain on it indefinitely. The company, which has operated on investor and “angel” funding since 2001, has not needed investor funding since 2010, Garippa said. “Instead of doing $5 million in sales, we are doing $25 million. Instead of losing $5 to $8 million, our profitability for this year is close to $3 million. We have been able to grow the business without the need for additional shareholder capital in the past few years.” “It’s been a very satisfying professional experience for me,” said SynCardia Co-Founder Copeland, who became known worldwide as a transplant surgeon at UA. He is now at the University of California, San Diego in La Jolla and is on the board of SynCardia. “I have spent a lot of time thinking about it and taking care of people with the device and I have been very pleased with the results,” Copeland said. “It’s saving lives.” The story of the artificial heart starts in the 1960s, when the U.S. was on a mission to start implanting permanent artificial hearts by the end of the decade. The technology was difficult to achieve, but in 1982, the Jarvik 7 was implanted in Utah in retired dentist Barney Clark. He lived for 112 days, never leaving the hospital. Copeland, a young surgeon at University Medical Center was making headlines through his heart transplant program. At the time, implanting the artificial heart was seen as a permanent measure, and he didn’t think it impacted him. Copeland was in the business of transplanting human hearts, not plastic ones. But after a couple of tragic incidents where patients died after the transplanted human heart would not start, Copeland knew he needed an artificial heart in his toolbox. In March 1985, Copeland used what was called the Phoenix heart in an emergency situation after his patient was rejecting the transplanted heart. Michael Creighton survived for 11 hours on the Phoenix, but died from 54 BizTucson < < < Winter 2013
Dr. Willem Kolff, Inventor, Total Artificial Heart
Dr. Jack Copeland, SynCardia Co-Founder & Board Member infection 60 hours after transplantation of a second human heart. Five months later, Copeland became the first surgeon in the world to successfully use the Jarvik 7 Total Artificial Heart as a bridge to human heart transplant. Michael Drummond, 25, lived for nine days on the heart before receiving a transplant and walking out the hospital doors. He lived another five years. Copeland and the rest of the world continued to do a small number of transplants that used the total artificial heart as a bridge. But in 1991, the U.S. Food and Drug Administration shut down the Vancouver company that manufactured the device. The news was devastating to Copeland and to Richard Smith, a biomedical engineer who is now technical director of University of Arizona Medical Center’s artificial heart program and co-founder and chief technical officer at SynCardia. The two had paired up for six years using the total artificial heart in patients. Now the future of the transplant program was at risk. They met with the CEO of Symbion, the company that had been shut down by the FDA for technical reasons. The CEO wanted to give the company to Copeland.
“I was totally blindsided,” Copeland recalled. “I said no, I am not interested in running the company, but I am interested in preserving the technology so let’s see what we can do in terms of getting the hospital to take over the company.” UMC did take over the company. It was moved to Tucson and won approval from the FDA to study the total artificial heart, along with four other hospitals. The study spanned 10 years and involved 81 patients. Just as the study was ending, UMC decided it could no longer fund the project, and again it looked like the technology might be lost. “UMC’s board of directors were literally in tears when they had to do this,” Smith recalled. “They were laying people off and they had to get out of anything not directly involved in patient care. It was very sad.” That is when Copeland, Slepian and Smith came together to create SynCardia. Slepian was an interventional cardiologist at UA with a passion for invention. He was the kid who couldn’t get enough of the science breakthroughs of the ’60s and ’70s. He built a heart-lung machine for his seventh-grade science fair project, and has the machine in his home today. “You grew up with the concept of the artificial heart and realized this thing could be,” Slepian said. “And then as a practicing cardiologist who is also an inventor and a scientist, this thing had to be.” Slepian, who was trained in biomaterials at Princeton University and Massachusetts Institute of Technology, has a long history of technology development. In the 1990s he was involved in starting up companies that develop and produce novel biomaterials. Slepian recently generated headlines for his development of biodegradable electronics that could disappear inside the body. When Copeland approached him about taking over the company, Slepian jumped right in. He became the CEO and the others joined him as co-founders. He now serves as chief scientific and medical officer. “We really had the right chemistry,” Slepian said. “We were good friends and we had the right balance of what we needed. I have the entrepreneurial experience and the early startup experience. I had taken a lot of products continued on page 56 >>>
PHOTO: CHRIS MOONEY
SynCardia team pictured with the Freedom portable driver and total artificial heart, from left – Dr. Marvin Slepian, Michael Garippa and Richard Smith.
s
Southern Arizona mom Marcela Padilla (right) was the first patient in the U.S. to go home with the Freedom driver pumping her total artificial heart from a backpack. Photos by Gabrielle Fimbres. The Freedom portable driver is currently available to patients in the U.S. through an Investigational Device Exemption clinical study and is in the process of being submitted to the Food and Drug Administration for review.
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BizMEDICINE
continued from page 54 through the FDA for approval.” After getting approval from the UA to take over the company, what they needed most was cash. Their first investor was Robert Sarver, a prominent UA grad, philanthropist and majority owner of the Phoenix Suns. After collecting close to $3 million in investments, they were ready to go. “We had to do a lot of fix-up,” Slepian said. “This was a university appendage academic project that didn’t have the right stuff of a startup. There was no entrepreneurial vision, no startup activity and the technology was in limbo.” Others in the medical profession thought the three had lost their minds. They thought the existing LVAD – left ventricular assist device – and other technology was adequate. “They thought we were crazy cowboys out in Arizona,” Copeland recalled. But he knew the other devices were not enough to save end-stage patients with biventricular failure. Over the next decade, the team worked to restructure the company, develop new technology, receive FDA approval and finally in 2008, Medicare reimbursement. But it’s the development of new technology – the Freedom and the Companion drivers along with the smaller heart – that will cause the company to grow. “As one of the original founders, it is very satisfying,” said Slepian, a professor of both surgery and biomedical engineering who also teaches entrepreneurship in the Eller College of Management. Production at SynCardia has ramped up over the past two years. Leah Gomez oversees the production of the total artificial heart, made from high-tech SPUS – or segmented polyurethane solution. SynCardia owns the rights to the solution, which requires a reactor to produce. SPUS is used to create the hard outer shell of the device as well as thin, flexible diaphragms that pump the blood. Hearts are made in a highly specialized and controlled clean room, which recently expanded to add six new work stations for a total of 10. The new space will accommodate demand, said Gomez, the production manager who started as a technician five years ago. “I thought I wanted to be a doctor, but I found SynCardia,” she said. “I was just overwhelmed by the purpose. Every person here has that same feeling. We come to work and we save lives.” Don Isaacs, VP of communications, said the team is unlike any other in its dedication to saving lives. “SynCardia hires incredible people and lets them perform,” he said. SynCardia hearts currently end up in 76 transplant hospitals in the world, including UAMC. Dr. M. Cristina Smith, director of heart transplant and ventricular-assist device services at the UA Department of Surgery, has used the total artificial heart more than a dozen times in the past two years. Since 2011, she has been able to send patients home to wait for transplant with the Freedom driver. “The best part about SynCardia and the reason it is starting to make even more of a difference is now there is an alternative for people to go home,” she said. A young Southern Arizona mom whose heart was destroyed during pregnancy was the first woman in the nation to go home with the Freedom driver after receiving her artificial heart. continued on page 58 >>>
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BizMEDICINE continued from page 56 Cristina Smith implanted a total artificial heart in 21-year-old Marcela Padilla. “It was so exciting to go home and be with the baby,” said Padilla, who received a donor heart three months later and is doing well. Cristina Smith said more lives will be saved with the new smaller artificial heart under development. She has had patients who were too small for the current artificial heart. “Most of these patients are women,” she said. “Now you give women – especially the young moms who end up with postpartum cardiomyopathy like Marcela – a chance to go home.” She said SynCardia turns to transplant surgeons for guidance. “SynCardia really listens to the needs of the patients and the families and the doctors. I think it has to do with the fact that there are so many surgeons involved with the company.” The device also helps patients who are too sick to be considered for transplant. “Donor hearts are distributed on a very competitive basis,” Garippa said. “If you are not healthy enough to warrant the donor heart it goes to someone else.” The total artificial heart can restore some to health, making them viable candidates for transplant. “People who were prisoners of their couch are now getting up and walking flights of stairs, like a 60-year-old Russian grandmother,” Garippa said. Co-founder Rich Smith, whose office at UAMC is a bit of an artificial heart museum, said the journey has been amazing. “The company almost folded so many times, but the best things usually happen when we hit the lowest points,” Smith said. “Our best work is in front of us,” predicted Smith, who helped create the Freedom and other technology. “The things we struggled with were things in the weird times where we shouldn’t have survived. We are on a path. We can make everything better faster now. But until we can put this into anybody at any time, we are not there.” Like Copeland and Slepian, Smith recalls other professionals “looking at us like we had clown suits on” as they stumped at medical conferences as to the potential of the device. “Now the world is coming to us,” Smith said.
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PHOTO: CARTER ALLEN
BizMILESTONE
Joseph Schifano, Founder Dependable Health Services
Dependable Health Services Sees
Healthcare Boom By Christy Krueger
When Joseph Schifano started Dependable Health Services on Oct. 17, 1992, he was so busy getting the company off the ground that he missed his own surprise birthday party that night. While the business has grown tremendously over the past 20 years to include four divisions, he now has the support of more than 600 employees, giving him a little more time to enjoy the occasional family celebration. Schifano’s first endeavor out of the gate was Dependable Nurses, a temporary employment agency that provides nursing services to hospitals, nursing homes, hospice care and other healthcare settings. 60 BizTucson < < < Winter 2013
As he became familiar with the industry, Schifano quickly realized he could make life simpler for homebound clients. He started Dependable Home Health in 1993 and became Medicare certified. “I understood the huge need for home healthcare. The industry was taking off,” he said. “Patients were being serviced at home and we wanted to be one company to take care of them.” Services provided under Dependable Home Health benefit high-acuity patients – “those coming out of the hospital and needing care for 30-40 days,” he said. “That includes nursing, physical therapy, occupational and speech therapy, social workers – all gamuts of healthcare needs in the home. The www.BizTucson.com
goal is to discharge the patients to go on with a normal life.” Longterm care also is provided under the Dependable Nurses division. “Our goal here is to maintain their quality of life and dignity during the disease process,” said Schifano. Dependable Nurses of Phoenix opened in 1996 to serve Maricopa County and surrounding areas. The fourth arm of the company, Dependable Medical Equipment in Tucson, came about when Schifano purchased Carondelet Home Health and Carondelet Medical Equipment in 2002, and its Nogales office in 2003. The showroom at 1120 S. Swan Road includes a service department. The business also provides home safety modifications. Between the four sectors of Dependable Health Services, Schifano estimated an average of 3,000 patients per day receive services. Where he feels his company stands out, particularly in the area of home healthcare, is an emphasis on the medical element and the accountability of staff. Dependable Health has a professional advisory group that includes physicians, nurses, care managers and therapists who oversee patient service. “There are a lot of mom-and-pop private-duty services that have no direct supervision. They’re not licensed or certified, and there’s no healthcare component to them – no physicians are involved,” he said. Schifano sees the outlook for his company, and healthcare in general, as exploding – particularly as the boomer generation ages and the Affordable Care Act continues to come into play.
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“There are two things changing. The healthcare industry will see massive numbers of patients – and there will be a huge shortage of doctors, nurses and aides to meet these people coming around the corner. Temp companies will become very busy,” Schifano said. Home healthcare is part of the solution, he noted. “It’s an extremely important issue with health reform. Our challenge is having qualified staff to meet the needs.” He said colleges and universities must make an effort to train health care professionals and get them into the workforce in a timely manner. To help prepare for upcoming changes, Schifano recently invested $1 million in technology, including a move toward electronic medical records and providing staff with tablets. Outside of work, Schifano is a member of the Tucson Conquistadores. “I’m extremely proud to be involved. The amount of time commitment is incredible – but the amount of good we do is phenomenal.” Despite having his hands full, Schifano threw a small party to commemorate his company’s anniversary in October. “Even though it’s our 20th, we’re in the middle of huge changes – so we celebrated for a short time and got back to the focus of patient needs and the future of healthcare reform and how to position ourselves.” And this year, to his family’s delight, he made it home for his birthday party. But he’s not making any future promises – next year might be an entirely different story.
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BizBRIEF
PRSA of Southern Arizona Honors Outstanding PR Professionals By Stephanie Collins The Southern Arizona Chapter of the Public Relations Society of America has recognized outstanding work at the annual IMPACT Awards ceremony. Entries were judged by a panel of professionals in the PRSA Hampton Roads, Virginia Chapter. The Lifetime Achievement Award was presented to Lew Riggs for an outstanding public relations career spanning 50 years. This prestigious award is given to professionals who have made an impact on their community through contributions to clients and contemporaries. Riggs is an active member and cofounder of PRSA Southern Arizona, a board member of 88-Crime and a Tucson Rotarian. Other 2012 IMPACT Awards recipients: Best in Show – Tactics UA Office of University Research Parks – Tucson Electric Power, Solon, Amonix, AstroSol, Solar Zone Company Dedication Best in Show – Campaigns Russell Public Communications – Jim Click Automotive Team, Jim Click Charity LEAF Raffle Media Relations Strongpoint Public Relations and Market Research: – Worthy Publishing/Christina-Taylor Green Memorial Foundation, As Good As She Imagined Book Tour – Girl Scouts of Southern Arizona/ Arizona Cactus Pine Council, Girl Scouts of Southern Arizona 100th Anniversary Public Service Announcements Bolchalk Frey Marketing, Advertising and Public Relations – Reid Park Zoological Society, Reid Park Zoo New Elephant Habitat, Expedition Tanzania 62 BizTucson < < < Winter 2013
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continued from page 62 Special Events Bolchalk Frey Marketing, Advertising and Public Relations – 390th Memorial Museum, Open House for Military Veterans on Veterans Day Groundbreakings/Grand Openings Russell Public Communications – Center for Neurosciences, Radiation Therapy Center of Excellence Launch UA Office of University Research Parks – Tucson Electric Power, Solon, Amonix, AstroSol, Solar Zone Company Dedication Feature Stories Alexis Blue, University of Arizona Health Network – Heroes Among Us Newsletters and Magazines UA Office of University Research Parks, Arizona-Mexico Commission and BizTucson – Arizona-Mexico Commission, Special Section in BizTucson Seminars/Receptions Arizona Center for Innovation – AzCl Dedication and Ribbon Cutting Ceremony Video/Audio Programs UA Office of University Research Parks/WestWordVision – Thinking the Impossible Community Relations Campaign Tucson Airport Authority – Working Together External Communications Campaign UA Office of University Research Parks – Border TEC Integrated Communications Campaign Russell Public Communications – Jim Click Automotive Team, Jim Click Charity LEAF Raffle Certificates of Excellence were awarded to the UA Health Network, Russell Public Communications, UA Office of University Research Parks, Tucson Airport Authority and UA’s Shelley Shelton.
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BizENTREPRENEUR
From left – Brian Wallace, Access Capital; Brian Smith, Grayhawk Capital; Stephanie Spong, Moksa Ventures; Harry George, Solstice Captial; Brian Birk, Sun Mountain Capital and Chris Marks, Tango/ High Country Ventures.
Venture Capitalists Unplugged By Dan Sorenson Entrepreneurs be forewarned – venture capital money comes with strings attached. One of the strings is the control the entrepreneur gives up by turning over partial ownership to the investors. Those insights came from a panel of Southwestern venture capital executives at the Rocky Mountain Venture Capital Association’s VC Unplugged conference luncheon held in Tucson in November. Before bringing in venture capital investors, entrepreneurs should consider all potential ramifications. Accepting venture capital funds also can lead to other entanglements they could later regret. Some of the seven panelists explained that while no single VC fund usually has anywhere near a majority position on the board of the company it invests in, the combined ownership stake of a syndicate of investors usually has similar goals and will act in its best interests – and that could well mean forcing out the budding company’s CEO. Stephanie Spong of New Mexico’s Moksa Ventures said the facts-of-life comments made by some who spoke before her struck her as unnecessarily grim. Yet she did add, “Yeah, we’re going to drop a lot of legal documents (on you) – but we want to do it in partnership. Sometimes we do find it necessary to change the direction of the company, and sometimes changing out the CEO. So VCs sometimes get the reputation of being controlling. But I don’t think any of us goes in with that idea.” Another thing entrepreneurs should fully understand about VC money is that once the deal is signed, they have essentially agreed to sell their company. 64 BizTucson < < < Winter 2013
That’s how the VC is going to get its money back. These investors don’t want to become longterm owners. The nature of the business is the sooner they get out, the better. “The minute a company takes mon-
Making the Money Pitch The panel’s tips for entrepreneurs seeking venture capital included: • Target pitches to VC funds that invest in the entrepreneur’s area – such as IT, medical technology or other specialties, said Stephanie Spong of Moksa Ventures. • Condense the pitch into a few hundred words or a punchy Power Point presentation. “We probably get 350 to 400 business plans a year,” said Brian Birk of Sun Mountain Capital, of Santa Fe. Provide “six pages rather than 60,” something that can be read in 20 minutes to get a good idea of what the concept or product is. • If you have someone on your team who has had success, or if there is another investor who is prominent, “I would make those known in the first page or two,” Birk said. • “You have a couple of slides, two minutes, take your pick,” said Bruce Dines of Colorado’s Liberty Global Ventures. Use that space or time to “display your knowledge. Do your research on the market, your competitors. Why is it a big idea? What problem does it solve?” • Get a “warm introduction” – use your contacts to find someone who knows someone in the VC firm so that you’re not just another faceless business plan in someone’s in-basket. Birk said if a VC gets a recommendation from “someone you know and respect, you’ll at least read the executive summary.”
ey from us they agree to a sale right up front,” said Brian Smith of Grayhawk Capital, Phoenix, one of few Arizonabased VC firms. Most of the panelists were from Colorado or New Mexico, two of several surrounding states which they said have much higher concentrations of venture capital firms than Arizona. While many VCs would be glad to do business here, the state of Arizona needs to create a more favorable climate to encourage local VC fund availability – of particular importance for entrepreneurs who need “early in” money, according to the panelists. Chris Marks of Boulder-based Tango/High Country Ventures said, “We invest early – that’s our model. My companies that I work with are in Boulder. I walk down the street at least once a week to see how they are doing.” And that need to keep a close watch on startups likely scares off some outof-town VCs from early-in deals for companies requiring a relatively small investment. “You can’t run down to Tucson for every board meeting when you’ve only got $100,000” invested in a company, said Brian Birk of Colorado’s Access Venture Partners. Panelists said New Mexico, Colorado, California and Utah have more VC funds and firms because of the favorable climate – the establishment of so-called “funds of funds” – created by those states. Tucson VC guru Harry George, who arranged this year’s conference stop in Tucson and moderated the panel, said there have been three failed attempts to get the Arizona Legislature to encourage funding pools – and that a fourth is now in the works. Biz www.BizTucson.com
SPECIAL REPORT 2013
THE REGION’S BUSINESS MAGAZINE
NEW HORIZONS Accelerating Economic Growth
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Photo: BalfourWalker.com
New for Economic As more stable signs of economic recovery slowly emerge, Tucson Regional Economic Opportunities is poised to embrace the dawn of a new day, with laser-focused strategies to energize the region with a singular goal of prosperity. With each of the local mayors now at the TREO table and with recent success in attracting new companies to Tucson, economic development leaders are creating a unified, region-wide plan of attack, with the goal of drawing high-wage jobs to the community. This unified effort was not easy to achieve in past years. “In the past, we tended to think myopically here,’’ said Joe Snell, TREO president and CEO. “We tended to think within jurisdictional boundaries. There’s so much demonstrated evidence that fractured communities don’t win and we were too fractured for too long.”
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In its eighth year, TREO recently restructured financially, now with 75 percent private sector funding. The remaining 25 percent of its operating budget comes from Pima County. This is a major shift from its roots eight years ago when the organization was nearly 100 percent publicly funded. The mayors of cities and towns in the region are now at the table, without providing financial support that was previously required. Instead, local jurisdictions are being asked to invest in economic development in other ways, including new incentive programs and other job creation tools. “Taking a regional approach will assure that everybody wins and it doesn’t matter what jurisdiction a particular company decides to locate in,’’ said Sharon Bronson, vice chair of the Pima County Board of Supervisors and a member of TREO’s executive committee.
“We all benefit,” she said. “Those folks who move here, those folks who work for those companies, they spend money across the region. We’ve got to stop playing parochial politics because that makes it very difficult for us to compete on a national level and on an international level.” The county’s position as the only public entity funding TREO makes sense because all Pima County taxpayers are represented. No city residents are ponying up twice. Oro Valley Mayor Satish Hiremath said the restructuring frees up TREO staff to concentrate on its central mission instead of spending time focusing on individual municipalities. It’s saying “we’re not trying to cannibalize – let’s try to specialize,” Hiremath said. “They’re tasked to go out and convince companies to relocate to the Tucson area. They’re the only organization in the entire region that actually does
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BizPROGRESS TREO Chairman’s Circle members from left – Michael M. Crow, Fletcher McCusker, Sandra Watson, Suzanne L. Miles, Sharon Bronson, James K. Beckmann, Ann Weaver Hart, Paul Bonavia, Joe Snell, Wendell Long, Lisa Lovallo, Stephen G. Eggen, Judy Rich, Daniel Alcombright, Mara Aspinall, Karen Mlawsky and Jim Click.
Horizons Development By Eric Swedlund
that intentionally,” Hiremath said. “A lot of their time was geared to trying to appease these municipalities that contributed a certain amount of money and justify to them their contributions.” Snell said that in order to be effective, regionalism must be truly embraced, not simply given lip service. “We have got to walk that walk and have it embedded into everything we do, using all of our resources to solve the issues and being unified in a goal. That will produce success,” he said. “As a regional community, as a metropolitan community, we need to adopt and embrace a brand new approach regarding economic development,’’ Snell added. “We need to be working with the intent of how we can rather than why we cannot.” The past fiscal year saw TREO’s efforts bring in 2,207 direct new jobs, working on 15 projects that have a combined total economic impact of
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$376.7 million. In addition to bringing in new jobs, TREO assisted existing companies – like Bombardier, Schletter and Bruker Nano – to expand. “That is up considerably, the highest point since we went into the recession,’’ Snell said of the numbers. “This region has experienced some significant wins.’’ Most recently TREO worked to secure four major companies – Accelr8 Technology Corporation (bioscience), Aris Integration (building and construction), American Tire Distributors (transportation and logistics) and Integrated Technologies Group (aerospace & defense). “We just need to point to Accelr8 as an example of how this region came together to solve an issue and ask a question of how we can,” Snell said. “We didn’t have the specific real estate fit, we didn’t have the wet lab space that fit this company,’’ he said. “The
first thing maybe in years past would have been to say ‘Well, it doesn’t fit, we don’t have it.’ Instead, government, the private sector, the academic sector, everybody got creative to come up with a solution and we ended up winning the prize.” Securing more economic prizes for the region will depend on maintaining a positive trajectory and being aggressive. “When something like Accelr8 happens, we want to shout as loud as we can, to as many people as we can, not only that Tucson won the prize, but why that company chose us,’’ Snell said. “Companies are influenced greatly by what they read. Everybody likes to pick a winner.” He said folks in business circles start talking when they read about a company like Accelr8 picking up and moving continued on page 72 >>> Winter 2013 > > > BizTucson 71
continued from page 71 velopment, bringing improved cooperation between private and public sectors. They understand the boost that quality to Tucson – “Hey, what are we missing? What are people seejobs provide to a community. “When we recruit people, acing about Tucson that we haven’t seen?” companying partners and family members are also relocatRon Shoopman, president of Southern Arizona Leadering,” said TREO Board Chairman Stephen G. Eggen, CFO ship Council, said companies look at all aspects of a commuof Raytheon Missile Systems. nity when they decide where to locate, attracted by a spirit of “If we can have more high-skilled and high-paying jobs cooperation. in the region that really helps with our efforts,” Eggen said. “We’re working together better than at any time in our his“When you get more high-tech businesses it creates a better tory,” Shoopman said. “TREO is focusing on its unique purbase for the community and you start to get into an interpose and role, and SALC and Tucson Metro Chamber and change of talent.” the other business groups are doing the same. Lisa Lovallo, TREO board secretary/treasurer, said the “We’re all working to make sure our missions are differentiboard is fortunate to have experts in “almost every field imagated and that we’re not duplicating efforts,” he said. “That’s inable.” It’s the commitment of those thought leaders that an important aspect of this effort to be not only regional but results in great accomplishments, she said. to be synchronized as we create a more prosperous future.” “There is very little this group has not seen or experienced Tucson has long been dependant on sunshine to bring prosin business, policy or economic development,” said Lovallo, perity to the community. That is no longer sufficient, Snell Market VP for Southern Arizona at Cox Communications. said. “Publicizing the recent TREO efforts to attract new busi“For the last 30 years, our economic plan and our comnesses to the region is critical,’’ Lovallo said. “When TREO munity development plan has been pointing to the sky at that convinces a new business to come into our community, the big yellow ball and saying ‘They will come and we will build job is only half done. The second part of the mission is to them homes.’ That will not work in the future,’’ Snell said. make sure that constituencies “We have to go earn it and we inside and outside of the region have to be smart how we do it.” know about the positive news. In TREO’s view, the top priTREO Performance 2005-2012 “When the community sees orities in the region for the comnew business and investment Total New Jobs Supported* 17,125 ing year will be to accelerate the coming into the region, they will pace of economic recovery, imCapital Investment $754.1 million work even harder to create a prove the region’s infrastructure Total Economic Impact $2.4 billion climate conducive to economic – roads in particular – and to Successful Projects 61 companies growth,’’ she added. “When solve issues and problems with a new companies come into the * Direct and Indirect unified approach. region, others will follow.” “If we can accomplish those Another area critical in the rethree things, we can become an One Year – July 1, 2011 to June 30, 2012 gion’s success is prioritizing how economic juggernaut, but our to spend the limited tax dollars. Total New Jobs Supported* 3,180 failure to address any of those “We’re not a huge city. PhoeDirect New Jobs 2,207 three will act as an anchor,” nix can spread out a lot of deciCapital Investment $68.7 million Snell said. sions over critical mass,” Snell TREO is focusing its efforts Total Economic Impact $376.7 million said. “We really have to make on drawing high-tech diagnosSuccessful Projects 15 companies it count every time we spend tics companies to Tucson, in * Direct and Indirect public resources. We have to do addition to other targeted insome hard analysis and look at Source: TREO 2012 dustries. (See related story, page the long term before we invest 125). in anything. Is it strategic? Is it In the heart of the recession, going to have a regional context TREO focused its resources on for us? Are we going to get a return out of this investment? marketing Tucson as a business hub, working to create brand Too often in Tucson’s history we haven’t applied that litmus awareness to capitalize on companies’ expansion during ecotest.” nomic recovery. Tucson’s ability as a metropolitan community to create a The Tucson region competes very well against California new narrative around the development of our economy will because of its tax structure. TREO is also increasing its efdictate our future success, Snell said. forts to attract direct foreign investment, specifically empha“The reality is Tucson is known for many things – a great sizing on selling a one-market opportunity with Sonora. place for golf, a great place for winter visitors, a great place “TREO has the top leadership of academia, the local mayfor tourism. But we’re not seen as one of the leading business ors and the private sector leaders at one table,” Snell said. “If centers in the U.S. And we have a pretty good story to tell. any one individual thinks they can solve these massive issues “We have got some critical mass of success with biotech on their own, they’re mistaken. It’s going to take the comcompanies, with aerospace companies,’’ Snell added. “We bined effort of a lot of smart people working very hard to put feel it’s really important to continue to put that story out there us in a position to win.” that it’s not just a place you can come for 350 days of sunTREO board members, who are busy with their own comshine – it’s a place you come for a career.” panies, are willing to devote time and energy to economic deBiz 72 BizTucson < < < Winter 2013
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Building on Our Strengths By Romi Carrell Wittman It’s the question on everyone’s mind: How do we grow Tucson’s economic base? “A growing economic base ensures a healthy and vibrant community that is a good place for companies like ours to do business,” said Stephen G. Eggen, CFO at Raytheon Missile Systems. As chair of the TREO board of directors, Eggen has a list of the top three issues he sees as priorities in growing the region’s economic base. On his list – the need to support existing high-tech businesses, ensuring that operational issues are being addressed and that no local barriers limit them from maintaining and growing their operations, the need to attract more high-tech businesses, and finally, the need to think like a region rather than individual communities when it comes to economic development. “We need more businesses that export goods and services outside Arizona and provide local revenues through payroll spending and spending with local suppliers,” he said. “If we’re going to attract more high-tech business, we have to leverage the strengths of the entire region.” Eggen has long been a vocal supporter of TREO. “TREO has been instrumental in working with the city, the county and the business community to create and implement a long-term economic development vision and plan for Tucson,” he said. “We need that kind of leadership, alignment and collaboration to ensure these efforts are successful.” www.BizTucson.com
He believes Southern Arizona has many assets – and obstacles. “We are fortunate to have a university system that is not only an excellent source of talent, but is also a strong collaborator and research partner for many companies in the region,” he said. Also in the plus column he cites a great climate, beautiful outdoors and a family-friendly community as features that make Tucson attractive. “It has a unique history and cultural heritage that make it a special place to live.” Progress in revitalizing downtown Tucson benefits the region as well. But Tucson also faces major challenges. “Funding for education continues to be a challenge, particularly as the state works to implement muchneeded reform in the K-12 system,” Eggen said. Key to our success will be the ability of government, business and community groups to work together to attract and grow business in the region, Eggen added. Looking to 2013, Eggen said that while uncertain times lay ahead for the aerospace & defense industry, he’s optimistic about Raytheon’s future. “While we are awaiting U.S. Department of Defense guidance on the specific impact to our business, Raytheon is well positioned to weather the ups and downs. We continue to execute well on our existing contracts, and we are actively winning new business.”
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TREO CHAIRMAN OF THE BOARD
Stephen G. Eggen CFO, Raytheon Missile Systems
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TREO VICE CHAIR
Building Intellectual Assets By Gabrielle Fimbres
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“We have companies and universities continuing to lead the way in many disciplines, setting us apart from other areas looking to attract the same jobs,” Gunther said. “We need to confront the challenge we continue to face, but embracing the positives will become infectious and help us grow.” Gunther said CenturyLink invests in economic development to achieve company goals – connecting with communities, improving lives and strengthening businesses. “We do this through advanced technologies and the service of our local teams and we benefit from both businesses and individuals who move here and need our service,” Gunther said. “TREO does the exact same thing by promoting the assets of our region and creating value for the companies who need the incentives coordination to decide on a new location or to open a new facility. TREO is the connective tissue in our region.’’ Gunther said his industry is experiencing dramatic change. “It’s not just about voice and data services anymore – it’s more about how people use these services to improve their lives and grow their businesses. We are addressing this change by investing in faster internet, cloud computing, IT services, advanced video and value added applications. “Like TREO, we believe our link to the future is the degree to which we combine infrastructure, ideas and opportunity,” Gunther said. Biz
Guy Gunther VP & GM Tucson & Greater Arizona, CenturyLink PHOTO: CARTER ALLEN
Our greatest strength is our people. Guy Gunther, VP and GM of Tucson and Greater Arizona at CenturyLink, said the region’s residents “embody the true spirit of the West and all of the energy, hard work and innovation that represents. “Southern Arizonans are building the intellectual assets across several key industries,’’ said Gunther, TREO vice chair. “We also talk about our geography, but the real asset here is the role we will play in linking the country – and the world – through our relationships with Sonora, Mexico and the entire Arizona Sun Corridor. The challenge will continue to be the linkage and coordination.’’ Gunther sees strong collaboration as critical to economic growth. “At TREO, we have companies that actually compete against each other in the market place, but we have recognized that we have to come together with one voice in order to foster growth. We need the same spirit across the diverse interest groups in Southern Arizona.’’ He also stresses the importance of keeping it local. “We need to support local businesses, we need to invest in our local communities and we need to develop mentoring programs that keep graduates in Southern Arizona,” Gunther said. Celebrating our accomplishments is also critical in encouraging economic success, he said.
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TREO SECRETARY/TREASURER PHOTO: BRENT G. MATHIS
TREO Blueprint a Roadmap to Prosperity By Romi Carrell Wittman
Lisa Lovallo Market VP, Southern Arizona Cox Communications
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Lisa Lovallo has long been a booster of Tucson and its local culture and heritage. She’s deeply invested in the community and works tirelessly to better it. Like other local leaders, Lovallo, Market VP for Southern Arizona at Cox Communications, sees three priorities with regard to growing Tucson’s economic base – the need to create more high-skilled, high-wage jobs, the need to create more job opportunities for college graduates so that they stay in the community and, finally, the need to strengthen the education system. Education is an issue that is close to Lovallo’s heart. She believes improving the system will make Tucson more attractive to new business. “More employers, employees and accompanying partners will want to come to Tucson and set down roots,” she said. “We achieve this by recruiting, hiring, developing and retaining the best teachers. Every parent, business owner and citizen must demand this in every classroom.” Lovallo sees TREO as playing an instrumental role in Southern Arizona’s economic development and future success. “TREO’s blueprint for economic development is a roadmap to a future of pros-
perity for our region,” said Lovallo, secretary/treasurer of the TREO board of directors. She is quick to point out Tucson’s many assets – great natural beauty, diversity and quality of life, not to mention a major research university. While Lovallo is one of Tucson’s most ardent champions, she also recognizes its challenges. “We have a struggling education system, poverty, political gridlock,” Lovallo said. All this has led to “a less than stellar national perception of Arizona.” She believes education and high-skilled/high-wage jobs are critical parts of a long-term solution. “We have a world-class public research university in our own backyard,” Lovallo said. “The University of Arizona is accessible, affordable and holds the key to creating a new, dynamic local economy and an educated workforce in Tucson.” Change starts with each one of us, Lovallo added. “Our region’s success is linked to our ability to raise our collective expectations. Great communities have high expectations…I choose to see a future with more college graduates, high wages, lower poverty, more charitable giving and healthier, engaged citizens.”
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Touting Our Strengths By Romi Carrell Wittman Cooperation is at the heart of building a robust and sustainable economy in Southern Arizona, says Paul Bonavia, chairman and CEO of UNS Energy Corp. and Tucson Electric Power. “Our region must remain focused on our common interests, our combined strength,” added Bonavia, TREO immediate past chair. “When potential employers consider Tucson, they’ll be more interested if businesses, local governments and our educational partners are mutually supportive and united in accelerating economic development.” Bonavia believes Tucson must identify what it has that other cities don’t. “What does our area really have to offer? That’s what we need to focus on.” He points to the University of Arizona Science and Technology Park as one example of Tucson offering something no other city can match. “The Solar Zone is an innovative effort that demonstrates our commitment to renewable energy and the UA’s commitment to innovation.’’ Bonavia said Tucson must be willing to compete. “With TREO leading the way, our businesses, our governments and our community leaders must be willing to show potential employers that Tucson and our other communities are outstanding places to live and work. We have to be willing to tout our strengths.” With the UA and other educational institutions, the region has the potential to build and support a talented workforce, Bonavia said. “TEP is making an effort to be more directly involved in attracting data centers, aerospace companies and businesses in the energy sector to the Tucson area.” www.BizTucson.com
Attracting these firms is challenging, with competition from a host of other cities working to draw them as well. He believes Tucson can be successful by being proactive. To that end, TEP supports Pima County and its effort to strengthen Tucson’s aerospace & defense corridor around Davis-Monthan Air Force Base and Raytheon Missile Systems. UNS and TEP are intensely focused on the community, Bonavia added. “Our employees and our customers are right here. We rise and fall with the community and that’s why economic development is so important to the entire region.” He sees TREO’s role as critical in building a strong economy. “It’s the one entity in our region dedicated to identifying development opportunities for Southern Arizona. It brings together divergent interests and entities and helps Tucson and the region to put its best foot forward.” Looking ahead in his industry, Bonavia sees a continued focus on environmental issues, including cost-effective renewable energy and energy efficiency. “In order for TEP to meet environmental public policy objectives – including integrating sustainable resources – investments in improving our system become even more imperative to our mission of providing affordable, reliable and safe electric service to our customers,” he said. “TEP’s investments in our system and sustainable resources will provide opportunities for our community. They will assist in both job creation and help TEP maintain very attractive and competitive electric rates.”
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TREO IMMEDIATE PAST CHAIR
Paul Bonavia Chairman & CEO, UNS Energy Corp. and Tucson Electric Power
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TREO LEADERSHIP
At the Helm Q&A with Joe Snell By Eric Swedlund
your perspective, is the Q: From economy getting better? seeing more stable business A: We’re growth month to month, so that’s a good sign. Currently, the unemployment rate is at 7 percent in the Tucson region, down from a high of nearly 10 percent in 2009. The latest data also show that our region is recovering faster than both the U.S. and state and we are tracking similarly to Phoenix. I do believe we are seeing a recovery. Our ability to invest in the things that make us more competitive will dictate the speed and strength of our recovery. will it take to amplify Q: What this economic recovery? its part, TREO will continue to be A: For aggressive and laser focused with our programs and initiatives. We will continue our national marketing campaign, pursue targeted companies in key industries via multiple sales channels and work hard to grow our own. We will support education initiatives that strengthen our ability to provide a talented workforce to grow higher-wage jobs, work to ensure we keep our costs competitive and help our elected leaders set the right investment priorities with our limited public dollars.
Joe Snell
are the key drivers for Q: What businesses looking to relocate
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or expand and how is Tucson positioned in those areas?
top criterion for any business is A: The workforce supply – do we have the talent
needed to run the business successfully? Second is our ability to attract workforce. This means a strong K-12 education system, a vibrant downtown and urban core, and good healthcare. www.BizTucson.com
How does a focus on reQ: gional cooperation with regard to economic development strengthen the Tucson area’s competitive position?
A: Companies choose to expand or
relocate into markets, not jurisdictions. Communities must position and marshal all assets to win. TREO creates a single point of contact and presents market opportunities to qualified companies.
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What advantages come with TREO’s shift to more private rather than public support?
A: The biggest misconception with
our recent shift to private dollars to support the bulk of TREO’s efforts is that we don’t need public investment in economic development. As a community we do need the public sector to be invested in a better economy. Given the need to work smarter and be
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more aggressive, we concluded that TREO would rely heavily on the private sector for operational support and encourage the public sector partners to use the funds previously given to TREO to support job creation in other ways. does TREO’s focus on Q: How particular industries and
companies benefit the region’s economic growth?
all jobs are the same. HisA: Not torically, we have grown jobs even faster than the nation – but these jobs haven’t been higher wage jobs that combat poverty and help citizens achieve more at higher income levels. Certain industries pay much better than others and we focus on those where we have the assets to compete and which will deliver high-skilled high-wage jobs for Tucsonans. These industries include aerospace & defense, solar and alternative energy, transportation and logistics, and biosciences.
TREO successfully Q: When attracts a new company to Tucson, what leverage does that provide to future recruitment efforts?
A: CEOs across the country and
the world pay attention to growing, thriving markets. They are always thinking about what’s next for their growth plans and what markets can serve their business best. When emerging markets like Tucson begin attracting consistent business investment, they take notice. We have a very strong national marketing and PR program and TREO is already aggressively leveraging these wins through national press, pitching stories to industry publications and advertising. Biz
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Early Childhood Education Critical to Economic Success By Romi Carrell Wittman
Daniel Alcombright President & CEO North America SOLON Corp.
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Daniel Alcombright, president and CEO, North America SOLON Corp., is a strong believer in public education, and he knows Southern Arizona needs to step up its game. “We have no early childhood program to speak of in the state,’’ he said. “From a competitiveness standpoint – compared to states like Wisconsin and Minnesota that offer it – it puts us at a disadvantage. It’s wrong from a moral standpoint as well.” He believes that it is critical as a community, a region and a state to make fast and dramatic improvements in early childhood and K-12 education. Education is the single largest factor that will improve our competitiveness as a region now and in the long term, Alcombright said. “If we had great schools and bad roads, people would be OK with the roads,’’ he said. Alcombright, however, is encouraged by Arizona’s university system. “Most of our technical staff come from the University of Arizona and Arizona State University. The public university system here is good at training engineers.” Brain drain remains a significant issue, however. “So many of our youth are exported to other states and regions,” he said. “They go through our education system and they leave and don’t come back to Southern Arizona. Losing that youth, that talent is a real issue for this region.” He also wishes more attention was paid to Tucson’s skilled manufacturing labor pool. “Manufacturing talent is a hidden gem that people don’t
give us enough credit for,” he said. “I look at our manufacturing staff at SOLON and they are world class. I would match them up against staff anywhere in the United States or internationally. In terms of skills, commitment and dedication, they are truly an asset we don’t emphasize enough within the community.” Alcombright believes TREO, its vision of the Arizona Sun Corridor and its ability to bring together different groups is central to the economic development of the region. “The small investment that companies like SOLON make in TREO…it’s really just critical,” he said. “Rising tides float all boats.” Alcombright said 2012 was a tough year for the solar industry and believes 2013 will bring more of the same. Major utilities are on track to meet renewable portfolio standards, meaning there are fewer projects in the pipeline. That, coupled with a crowded field of companies competing for business, makes for a difficult marketplace. Alcombright, however, remains upbeat about SOLON’s future. In March, it was purchased by Microsol and SOLON is now a privately held company, with much of the manufacturing based in Asia. “We have a strong parent company and the flexibility of a private company,” he said. “We have the quickness and nimbleness to be successful. I see the market as difficult, but I see SOLON as being able to compete.”
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TREO CHAIRMAN’S CIRCLE PHOTO: CHRIS MOONEY
Fueling Innovation Through Economic Development By Romi Carrell Wittman Mara Aspinall has three main priorities when it comes to growing Southern Arizona’s economic base. “Number 1 – build a critical mass of companies in technology-related industries. Number 2 – improve collaboration between government, academia and industry to strengthen our business climate and economic development. Number 3 – continued improvement of our pre-K-12 education system,” said Aspinall, president of Ventana Medical Systems, a member of the Roche group. Aspinall said supporting the region’s economic development will foster a larger talent pool for all local businesses and fuel innovation and technology breakthroughs. She is clear on the role TREO plays in nurturing economic growth. “They provide a unified business voice to support new business creation, expansion and partnership, and they assist in attracting new companies to the region.’’ Aspinall said Tucson has unique, diversified strengths in research, testing, medical labs and hospitals, which provide an ideal foundation for the bioscience industry. She also cites the University of Arizona as a key strength. “We have a strong talent base today, but we need to add to it as we grow our base of companies here,” she said. “Our strong universities are another core asset. They are critical today and will continue to be in the future growth of our intellectual base.” www.BizTucson.com
While Tucson has many assets, there is still much work to be done. “Strong collaborative efforts among many entities are required to fortify business climate and economic development,” Aspinall added. “Another challenge is the need to continue to improve our educational system, which is an essential component of a successful innovation ecosystem.” Looking ahead to 2013, Aspinall said Ventana Medical is poised to continue its exponential growth. “Our mission is to improve the lives of all patients with cancer. The majority are living with cancer longer than they ever have before. As a result, our industry continues to grow aggressively in order to diagnose new patients and to monitor their treatments.” Growing demand for more impactful and targeted treatment is driven by an aging population, healthcare and economic pressures. An influx of new technologies enables Ventana Medical to meet this need by offering innovative tests and treatments, leading the way to personalized healthcare. Cancer treatments will soon be targeted to different groups of patients based on their specific sub-type of cancer. “At Ventana Medical, we are very well positioned to excel in this area globally in 2013 and beyond,’’ Aspinall said.
Mara Aspinall President Ventana Medical Systems A member of the Roche group
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Building a Skilled Workforce Critical to Region’s Health By Romi Carrell Wittman
James K. Beckmann President & CEO Carondelet Health Network
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Attracting and developing a highly qualified workforce is crucial in the healthcare industry and the overall growth of our region, said James K. Beckmann, president and CEO of Carondelet Health Network. “As an industry, healthcare provides one of the fastestgrowing opportunities for employment, and our field is always in need of highly trained clinical personnel,’’ Beckmann said. He is optimistic about ongoing efforts to provide quality training for workers in his industry. “We see a commitment toward that end with the wonderful work being done to expand and strengthen the many offerings available at our local higher education institutions,” Beckmann said. He is equally upbeat about the region’s assets, specifically the University of Arizona. “As a landmark educational institution with a national reputation, UA enriches this community in so many ways,” he said. “It literally lives at the center of our community geographically, socially, economically and educationally.” Beckmann said TREO is working aggressively to address Southern Arizona’s two other top priorities – identifying, attracting and recruiting businesses interested in expanding into the West and Southwest by convincing their leadership that Tucson is the right fit for
their business, and working with city and county leaders to improve first impressions for visitors to the Tucson area. TREO provides Beckmann and others at Carondelet the opportunity to network, build partnerships and collaborate with other local business leaders who understand this interconnectivity and are willing to support each others’ success to strengthen the community, he said. “No business or organization that wishes to succeed expects to do so alone,’’ Beckmann said. “We are interconnected. We succeed when others succeed and we falter when other local businesses falter.” Going forward, partners in this regional development effort must work together to educate businesses and other communities about what the region has to offer, Beckmann said. “One of our greatest challenges is the highly competitive environment we face when attempting to attract new business to our community,” he said. “We must always be cognizant of highlighting the advantages we offer and eliminating barriers.”
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TREO CHAIRMAN’S CIRCLE PHOTO: BRENT G. MATHIS
Partners in Economic Transformation By Romi Carrell Wittman Sharon Bronson has served on the Pima County Board of Supervisors since 1996, representing a huge swath of land that covers some 7,400 square miles and includes all of western Pima County. Tucson has changed in the 16 years that Bronson has served District 3, and while growth has slowed in recent years, Bronson believes it will pick up again in the near term. “Our southern corridor is ripe for new growth opportunities,” she explained. “It not only features our existing military and defense installations, but our international airport and important transportation industries.” Bronson also points to Southern Arizona’s growing tech corridor, anchored by the University of Arizona Science and Technology Park, the Bioscience Park at The Bridges and the medical campus on Ajo Way. Pima County must work hand-in-hand with the region’s top employers to ensure they stay in Tucson and to give them the tools and resources they need to expand, Bronson said. “Raytheon’s decision to expand its operations in Huntsville, Ala., was fueled in part by physical growth constraints at their current facility here,’’ she added. “With the land purchases, we have the opportunity now to make sure that if Raytheon expands in the future, it has what it needs to do so in Pima County. “Recent land purchases by Pima County averted incompatible development that had threatened the missions of Davis-Monthan Air Force Base www.BizTucson.com
and Raytheon Missile Systems,” Bronson said. Continued support of TREO is critical for the region’s economic development, Bronson said. “As long as new job opportunities come to the region, we aren’t picky about which jurisdictional boundaries they fall within. Pima County has made the decision to increase its contribution to assist TREO, given the importance we have placed on stimulating the economic environment and producing higher-wage jobs in the region. This is not the time to scale back that investment.” What does Bronson think would help the region to grow? Direct air service between Tucson and Mexico, specifically Hermosillo. “The Mexican market is a much smaller fraction of our economy than it would be if Mexican tourists and businessmen had easier access to Southern Arizona markets via Tucson,” she said. Bronson believes Southern Arizona has many advantages that are not easily duplicated in other cities. “We have a top-notch university. We’re in a prime location between Mexico and Phoenix. We have dynamic aerospace & defense and biosciences centers, as well as a livable community, a beautiful climate and an engaged populace,” she said. Bronson believes the region’s future is golden. “We don’t intend to see Pima County’s new economic development plan sit on a shelf gathering dust. We are optimistic that, with focused action, we can make the most of the opportunities that exist and begin to transform our economic landscape.”
Sharon Bronson Vice Chair, Pima County Board of Supervisors
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TREO CHAIRMAN’S CIRCLE
Let’s Grow Our Economy Together By Romi Carrell Wittman
Jim Click President, Jim Click Automotive
Everybody knows Jim Click. Whether it’s his television ads, his long-standing support of local nonprofits or his involvement in community events around town, Click is something of a Tucson icon. Tucson is near and dear to Click’s heart and he has high hopes for its future. However, he sees one main challenge to growing the region. “We’ve got to figure out a way to make it easier for businesses to grow in Tucson and for businesses to move to Tucson,” he said. “If we don’t grow, we don’t prosper.” As for the businesses already here, he said, “We need to put a warm blanket around them and keep them here.” Click believes that city and county government need to re-evaluate zoning, permitting and other issues to create a more business-friendly environment. “We need regulation and protected space,” he said, “but we have a bad reputation for business. We need to make it easier for businesses to get started.” While he believes progress is being made, Click said the reform of K-12 public education also needs to be a priority. “As a community, it behooves us to do everything we can to get reform in education and then properly fund it. We need to reward the good teachers and fund them so they have the tools to teach properly.” In the plus column, Click sees many advantages.
“The University of Arizona is the best asset we have,” he said. He points to Tucson’s natural beauty and resources as jewels in the crown, as well as the burgeoning high-tech industry. Click believes TREO is vital to the region’s economic future. “It would be silly for me not to support TREO,” he said. He believes TREO provides a crucial role in bringing city and county government together alongside business. “I think it’s one of the best investments I can make in my community and to grow my business.” Looking ahead, Click is optimistic. “I think 2013 is going to be a good year for the car business,” he said. “I think we’ll be up 10 to 15 percent.” He attributes this growth to pent-up demand. “Right now the average age of cars is 11 years. That’s the oldest we’ve ever seen,” he said. He believes people will start looking to replace those aged cars in the coming months. Click is equally optimistic about the region. “I think Tucson will do just fine. We’ve got a great community.”
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Showcasing Statewide Strengths
Photo: BalfourWalker.com
TREO CHAIRMAN’S CIRCLE
By Romi Carrell Wittman While the age-old rivalry between the Arizona State University Sun Devils and the University of Arizona Wildcats is good natured, the real-life rivalry between Phoenix and Tucson doesn’t benefit either community. That’s the message from Michael M. Crow, ASU president. Crow said TREO has been successful in overcoming these old north-south Arizona antagonisms. “TREO has gone a long way in fostering regionalism,” which Crow said is a goal he and ASU strongly support. Crow believes Southern Arizona and the Phoenix area need to collaborate to foster a truly regional approach to growth and economic development. The development of the Sun Corridor is critical for the region to effectively compete with the dozen or so “megapolitan” areas in the United States as well as with emerging markets around the world, Crow said. The Arizona Sun Corridor reaches from the Mexican border at Nogales through Yavapai County. By 2030, the population in that stretch of Arizona is expected to grow by more than 2 million residents. Infrastructure is also crucial, Crow said, including the development of an exceptional K-12 educational system, as
well as community college and university systems. He believes that incentives will play a necessary role in attracting business to the region. “A tool kit of incentives and policies would allow the state of Arizona to compete,” he said. These tools would give Arizona what it needs to effectively compete against historically business-friendly states like Texas, Crow said. Looking ahead, Crow believes Arizona has many challenges to address to become a competitor in the global marketplace. “We have great natural resources and sound infrastructure that, however, needs expansion and augmentation,” he said. Crow believes Arizona has a unique entrepreneurial spirit, evident in its high-tech accomplishment in the areas of aerospace & defense, biosciences, renewable energy and computer-related technologies. Still, Crow believes the biggest issue Arizona must deal with has to do with image. “The major challenge is overcoming the misperception that Arizona is not a progressive place to do business,” Crow said.
Michael M. Crow President, Arizona State University
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Partners in Solving Economic Challenges By Romi Carrell Wittman
Ann Weaver Hart President, University of Arizona
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Although she’s been on the job only a few months, University of Arizona President Ann Weaver Hart has hit the ground running, getting to know her new community, its opportunities and its obstacles. More importantly, she’s identified ways the UA can actively be part of the solution. “Southern Arizona is poised to undergo significant growth and workforce development, and the UA is diligently working to support this growth,” Hart said. She believes a key catalyst will be the region’s approach to public-private partnerships. “Public universities are about to enter a period of transformation, one in which they must decide how – or even whether – to survive in a future far different from what we now see,’’ Hart added. “How we approach learning and technology 10 to 20 years from now may look fundamentally different, but I’m confident that our bedrock principles of excellence in education, research and public service will be instantly recognizable no matter how much time passes.” Hart views the partnership between industry and the university as paramount. “The development of industry and the great public universities of the United States are inextricably linked. To us, as a land-grant university, the importance of the partnership between the UA and local businesses is even more critical – our mission calls us to bring developments from the lab to our citizens,
where there is tangible value.” She points to Tech Launch Arizona, an entity that was created to integrate UA technology commercialization programs. “TLA will streamline and facilitate the translation of research and discovery into intellectual property, inventions, and tangible products and services,” Hart said. “This proven business model has worked in other areas of the country with many positive results, including economic benefits.” Controlling “runaway healthcare costs’’ is a major challenge, Hart said. “We need to work together as a community to identify new approaches to healthcare delivery that emphasize preventive and personalized medicine, develop treatments for chronic illness and address the aging epidemic. One opportunity here is that doing these things will necessitate the development of assets in science and technology.’’ To promote the growth of Southern Arizona’s economic base, Hart said we must ask ourselves tough questions. “We need, as a community, to prepare ourselves for change by asking what we need to do to be as business-friendly as possible. Public-private partnerships are going to play a central role in the region’s economic growth, and they need to be fostered and cultivated,” she said. “We need to rise above local issues or differences and grow, shape, equip and inspire leaders who will help solve the greater challenges of tomorrow.”
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Corporate Neighbors Supporting Growth Through Unity By Romi Carrell Wittman As CEO of Casino del Sol Resort and with more than 30 years of industry experience, Wendell Long has a unique take on what he believes are the region’s top priorities in growing our economic base. “Our economic growth and health is generated by adhering to well-founded principles such as nurturing a strong competitive environment in which individuals and companies can strive for success,” he said. Strategic alliances and partnerships must be at the core of any successful economic development plan, Long said. “We want to create a fertile and substantial playing field that promotes new ideas and encourages entrepreneurial momentum,” he said. The goal, he believes, is leveraging the region’s resources effectively, and creating a powerful, “one-stop’’ location for economic investment. Long views TREO as the centerpiece of Southern Arizona’s economic development efforts. “Today, more than ever, all of our boats in the harbor rise and fall together,” he said. “Our membership in TREO affords us the opportunity to explore and participate in a variety of activities dedicated to the growth of the entire region.” He believes that TREO can affect change and unify the sometimes competing voices and opinions heard in economic development discussions. www.BizTucson.com
“With so many voices and viewpoints, each with its own set of passionate and committed individuals and groups, TREO is in a unique position to help facilitate growth through unity,” he said. Long views participation in TREO as critical, both to the community and to the Pascua Yaqui tribe. “Our investment in the community and its growth occurs on many levels and touches the lives of people throughout the region. Our tribal members, our employees and vendor partners, and even our guests know that we are committed to supporting growth in every aspect of our role as a good corporate neighbor,” he explained. He is optimistic about the future. “I am extremely upbeat and positive about the immediate and long-term future for casino resorts in Arizona,” Long said. “We have seen growth in the casino and entertainment industry in the past year that is more positive overall than in the two years previous. Indicators are that 2013 and beyond will provide a more stable and smooth path to profitability. Progress has definitely been made on both a local and state level and we are seeing more Arizonans from all over the state come to Tucson to stay and play with us.’’
Wendell Long CEO, Casino del Sol Resort
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TREO CHAIRMAN’S CIRCLE
Unleashing Tucson’s Economic Might By Romi Carrell Wittman
Fletcher McCusker Chairman Rio Nuevo Board
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Unlocking Southern Arizona’s economic power – it’s a goal that’s dogged Tucson’s leaders for years. Fletcher McCusker, who recently announced his retirement as chairman and CEO of Providence Service Corporation effective at the end of 2012, believes he knows the keys to unlock and unleash Tucson’s economic might. First, there’s the need for cooperation. “(There is) still bickering between the City of Tucson and the county, (between) Rio Nuevo and the City of Tucson,” said McCusker, who is chairman of the Rio Nuevo board. “We need the entire region to come together and focus. (We need) to partner with Marana, Oro Valley and invite tribal government.” He believes the need for cooperation extends beyond local and regional government to the citizenry. “We have a passionate, parochial group of citizens that, when properly mobilized, is very effective,” he said. He laments the lack of common ground, a common plan or common direction. Next, McCusker said retaining a skilled talent pool is vital in building the economy. We must “keep our University of Arizona talent,” he said. “Programs like Eller College of Management, optical sciences and public health graduate some of the best talent in America, but they’re not staying and creating jobs in Tucson.”
McCusker believes improved mentoring and student internship programs would help students connect with entrepreneurs and keep them here after graduation. He believes building strong incubator programs and fostering venture capital is central to keeping Tucson’s talent in Tucson. The third key: market Tucson better. “We need to accelerate the promotion of Tucson as the place to live and work, the ‘New Austin,’” McCusker said. He believes this is possible by pooling the marketing resources of all local jurisdictions to develop a new campaign and brand identity to “step up our solicitation of companies and talent.” McCusker believes in Tucson, especially downtown, and, as the saying goes, he’s put his money where his mouth is. His grandfather laid sidewalk downtown and in May 2010, McCusker relocated his company downtown to promote and revitalize the area. TREO was one of the first organizations to understand the real, regional value of a walkable, urban environment as part of the overall Tucson experience, McCusker said. And that Tucson experience, as he calls it, is unique. “The desert beauty – people come from all over the world – it’s the most spectacular desert in America.”
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TREO CHAIRMAN’S CIRCLE PHOTO: BRENT G. MATHIS
Education Critical to Workforce Development By Romi Carrell Wittman Suzanne L. Miles has served as interim chancellor of Pima Community College since February, capping a 26-year career at the educational institution. Her experience as interim chancellor and, before that, provost and executive vice chancellor and president of Pima’s Community Campus, has given her unique insight into our region’s strengths, weaknesses and – most importantly – opportunities. Having devoted her career to education, it’s no surprise that education and educational funding are at the top of her list of priorities for Tucson. “We need a strong and fully supported educational system, from preschool through to the community college and university systems,” she said. One significant problem affecting colleges nationwide is the large number of college students who require developmental education, Miles said. This indicates the need for higher-quality K-12 education, ensuring that students arrive at college with the basic skills required to be successful. Adult education is also vital to our success as a community, she said. Miles has noted that about 4,000 students are enrolled in Pima’s adult education programs alone.
“Community colleges can offer workforce training to industry and businesses,” she said, which is necessary in preparing the community for highly skilled jobs. A lack of funding to support education remains a hurdle for the State of Arizona and its education system, she said. Looking at the bigger picture, Miles believes incentives are a critical catalyst for growth in our region. Required for success are “incentives for business and industry to relocate to Southern Arizona,’’ as well as “safe neighborhoods and a clean, well-supported infrastructure.” Miles said creating a vital downtown for professionals and young adults is also crucial to Tucson’s future. TREO is an integral part of the Tucson region, Miles added. “TREO helps us to support our mission, which is to develop our community through learning,’’ she said.
Suzanne L. Miles Interim Chancellor Pima Community College
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Bolstering Healthcare for Future Generations By Gabrielle Fimbres
Karen D. Mlawsky CEO University of Arizona Medical Center
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Access to quality healthcare is one of the greatest challenges facing our region. “It is likely that our state will continue to experience population growth, and unless physician supply for the state is significantly increased, we won’t have enough doctors to take care of our community,’’ said Karen D. Mlawsky, CEO of University of Arizona Medical Center. Creating a robust healthcare system in Arizona – including a strong safety net – will aid in economic growth, Mlawsky predicted. “Health needs must be addressed at the right time, by the right provider and in the right setting,” she said. “Prevention and wellness can shift the cost curve if we address it as a community. “People will always require healthcare whether they have healthcare coverage or not,” Mlawsky continued. “If we don’t solve the insurance coverage issues facing us, people will use the most expensive form of healthcare – the emergency room. This is unsustainable for our community’s businesses and economy.” The industry is poised for tremendous growth. “Healthcare will likely be one of the top job creating industries, regardless of a slow economic recovery,” Mlawsky said. “The average healthcare worker and physician are getting closer to retirement. But who will take care of us? There is tremendous opportunity to
contribute to our region’s economic development and job creation through teaching and training our future healthcare workforce. “We are fortunate to have the UA with teaching programs in the health sciences to help us meet the demand ahead,” she said. The healthcare market has also become “much more transparent over the past year and will continue to shift toward performance ratings, customer satisfaction, clinical outcomes and cost containment,’’ Mlawsky said. “This is good for our community” Creating a structurally sound revenue base at state, county and city levels and strengthening the state education system are also keys to economic stability, she added. “Education is critical to attract and retain a highly-skilled workforce and establish a pipeline for the future.” Why does UAMC invest in TREO? “We have a responsibility to play upon our strengths in Southern Arizona to diversify the economy,” Mlawsky said. “Having the university in our backyard along with world-renowned research and healthcare, we are uniquely positioned to attract biotech firms to our region. TREO facilitates connections and identifies synergies with others around the country – and world – that allow us to bring new opportunities back to our region.’’ Biz www.BizTucson.com
TREO CHAIRMAN’S CIRCLE PHOTO: CHRIS MOONEY
Building a Healthy Community By Romi Carrell Wittman As president and CEO of TMC Healthcare, Judy Rich interacts with a vibrant and diverse cross-section of the community every day at Tucson Medical Center. This gives her a unique vantage point from which to see our region – with its areas of excellence and its areas of challenge. “A community is only as strong and successful as the people who live there,” Rich said. “To that end, the top economic development priorities should be education, recruiting and retaining top talent, and the quality of life – particularly as it is perceived by new residents.” Rich sees many things in Tucson’s plus column. “Our region is blessed by innovative and passionate people who are independent yet committed to helping others succeed,” she said. “And, of course, we have plenty of sunshine, which is good for the spirit and a good source of power.” Still, Tucson has its share of problems. “We continue to struggle with high poverty, a weakened K-12 education system and the lack of diverse job opportunities,” said Rich, who started her career as a hospital staff nurse. She believes TREO plays a central role in our community’s economic health.
“Our business community will thrive as our economy thrives,” Rich said. “TREO provides a clear path for new businesses to get the traction they need for success and supports the growth of existing businesses. We need to continue to support existing businesses and cultivate new businesses to drive our region forward.” Looking ahead, Rich predicted that the healthcare industry will have its share of challenges, yet she is hopeful. “As a hospital and a business, we are increasingly aware that the health of our industry is tied to the overall health of the population – our employees, our patients and our community,” she said. “There are many challenges facing healthcare today, but I am optimistic that by focusing on population health and engaging our patients to improve our care processes, our prognosis is very good.”
Judy Rich President & CEO TMC Healthcare
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Arizona Ripe with High-Tech Talent By Romi Carrell Wittman
Sandra Watson President & CEO Arizona Commerce Authority
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While Sandra Watson may be new to the TREO Chairman’s Circle, she brings with her an extensive background in economic development in Arizona. Watson was named president and CEO of the Arizona Commerce Authority in October after serving in those positions on an interim basis. She was with the Arizona Department of Commerce for 15 years prior to that and has worked to bring hundreds of companies and tens of thousands of jobs to Arizona. Growth is good, but Watson believes the focus must be on quality growth. Attracting and supporting companies in well-established, high-value, advanced industries such as aerospace & defense should be a priority. She also sees highgrowth nascent industries like biosciences, optics and renewable energy as central to Arizona’s future. Watson believes fostering new business and innovation is critical. “Growing Arizona’s economic base requires attracting new businesses to the state, assisting existing business with expansion efforts, and helping innovative entrepreneurs create new business,” she explained. Arizona is already known for an entrepreneur-friendly business climate, Watson said. “As evidenced by Arizona’s number one ranking for entrepreneurial activity from the Kauffman Foundation, Arizona is ripe with talent, creativity and cutting-edge research and development,’’ Watson said. “Fostering this type of business creation contributes to a more
sustainable model of economic prosperity.” Watson said TREO is important because it is central to a larger, collaborative movement in the state. “Economic development is a team sport,’’ Watson said. “Collaboration benefits our statewide economy, and it’s working. Recent results of these efforts include the announcements of Aris Integration, Accelr8 and Living Social in Southern Arizona.” Watson believes the region has many positive attributes, and points to the University of Arizona as a singular asset. She said Raytheon Missile Systems, Ventana Medical Systems, Abrams Airborne Manufacturing and Davis-Monthan Air Force Base add luster to the region. She sees a bright future for Arizona. “Now more than ever, Arizona can compete – and can win – in the global marketplace. Our state is making tremendous progress in advancing an innovative, nextgeneration, sustainable economic environment that fosters business creation, expansion and attraction.” In 2013, Watson sees further collaboration between TREO, the City of Tucson and Pima County, the fruits of which will benefit the entire region. “Our outlook is incredibly positive, and we maintain a focused and targeted strategy to continue to grow and strengthen Arizona’s economy and facilitate the creation of quality jobs by supporting and attracting businesses in targeted, high-value base sectors throughout the state,’’ she said. Biz www.BizTucson.com
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TREO 2012 - 2013 BOARD OF DIRECTORS Steven Banzhaf – Senior VP, U.S. Trust/Bank of America
Steven Banzhaf represents U.S. Trust/Bank of America in the Tucson community in connection with its philanthropic, volunteer and community outreach. In addition to its retail banking, mortgage and credit-card operations, Bank of America has become a preeminent investment-advisory firm through its acquisition of Merrill Lynch in late 2008. One of the reasons Bank of America supports economic development is that its local philanthropic partners have encouraged the
bank to be a community leader in the effort to bring more quality employment opportunities to Tucson. Banzhaf is a member of the TREO Nominating Committee and is involved with a number of community organizations, which include United Way of Tucson and Southern Arizona (past chairman, 2007-2009), Tucson Junior Achievement and DM50.
W. Barry Bendall – VP, Principal Relationship Manager, Wells Fargo Bank
W. Barry Bendall manages a diversified portfolio of clients who conduct business in a variety of industries, including manufacturing, hospitality, nonprofit and construction. He has 29 years of experience in both commercial and retail banking in Arizona. Wells Fargo is a leader in promoting longterm economic prosperity and quality of life for all in the community. He believes that supporting economic development offers opportunities for the type of growth that will allow our area to prosper,
now and in the future. Bendall has served on several community boards. He’s past president of Sierra Vista Economic Development Foundation and a former board member of Tucson Metro Chamber. Bendall is an executive board member of Boy Scouts of America, Catalina Council.
Duane Blumberg – Mayor, Town of Sahuarita
Sahuarita, a town of more than 25,000 residents located south of Tucson, uses the council/mayor form of government. As mayor, Duane Blumberg presides at council meetings, executes official documents and represents the town to a variety of organizations. According to Blumberg, the town’s business activity is concentrated on the retail/service and construction sectors. Its emphasis on developing economic diversification by attracting high-
wage primary businesses to provide a more sustainable economy fits well with TREO’s mission and activities. In addition to his position as a TREO board member, Blumberg is a trustee with Arizona Municipal Risk Retention Pool, a member of the Regional Council of the Pima Association of Governments and a member of the Regional Transportation Authority board of directors.
Kevin M. Burnett – Senior VP & CFO, Sundt Companies
Sundt is a diversified general contractor with expertise in civil, mining, industrial, government and commercial building. The firm has revenues of approximately $1 billion, serving both public and private clients. Kevin M. Burnett’s responsibilities include leading financial reporting and planning, tax, investments and risk management functions. A significant industry development he’s seen in recent years is the technological advancement in modeling, constructability reviews, estimating and proj-
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ect management. Burnett believes that economic development is critical to the financial health of our community and expanding business, which fits with Sundt’s mission to give back and improve the communities in which its employees live. Burnett serves as vice chair of the YMCA of Southern Arizona and he is president of Valley of the Sun Construction Finance Managers Association.
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Kathy Byrne – Executive Director, El Rio Community Health Center
As executive director, Kathy Byrne oversees the largest community health center in the state, employing more than 800 people with an operating budget in excess of $85 million. She directs initiatives and operations that support the organization’s mission of “improving our community through comprehensive, accessible, affordable, quality, compassionate care.’’ Byrne serves as board member of the El Rio Foundation, which raises private support to fund the health center’s programs. In
2013 she will supervise the building of a new $14 million, 50,000-square-foot site being constructed near downtown. Byrne serves on the State Medicaid Advisory Committee, the executive committee of Health Information Network of Arizona and the board of Arizona Association of Community Health Centers.
Bruce Dusenberry – President, Horizon Moving Systems
Horizon Moving Systems is Arizona’s largest moving and storage company and specializes in all types of moves almost anywhere around the globe. Since 1924, Horizon’s employees have taken pride in helping customers experience a smooth and positive moving experience. Bruce Dusenberry serves as the company’s ambassador to the local business communities in which it operates and he partners with TREO because he is interested in striving for new horizons for economic de-
velopment in our region. Dusenberry’s community involvement includes serving as board member and chairman of Tucson Metro Chamber and board member of Southern Arizona Leadership Council. In 2009 he was honored as Man of the Year by what was then the Tucson Metropolitan Chamber of Commerce, and in 2012 Horizon was named a finalist in the Tucson Metro Chamber Copper Cactus Awards for Community Service.
Patricia Feeney – President, Southern Arizona Market, Chase Bank
As president, Patricia Feeney leads the community relations for the Southern Arizona market of JPMorgan Chase, a global financial services company and local bank. She also manages commercial banking relationships with clients across the state. Feeney has found that regulatory and market changes have made it more important than ever for banks to provide security and solutions to customers. She believes there is a direct connection between a healthy economy and a
healthy community. In 2010 Chase donated $3.9 million to Arizona nonprofits to support community, education, workforce and economic development. Her community involvement includes serving on the boards of Junior Achievement and La Paloma Family Services. She is a member of Capital Campaign Cabinet of the United Way of Tucson and Southern Arizona, Southern Arizona Leadership Council and Financial Executives & Affiliates of Tucson.
Guy Gunther – VP & GM, Tucson & Greater Arizona, CenturyLink
CenturyLink is the third largest telecommunications company in the United States and provides data, voice and managed services through its advanced fiber-optic networks. The company is in the process of implementing new technologies to Southern Arizona, including Enterprise cloud computing, collocation and managed hosting services. Economic development is the engine that drives jobs, economic prosperity and growth to the state and communities. CenturyLink is com-
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mitted to improving lives, strengthening businesses and connecting communities by delivering advanced technologies and solutions. Guy Gunther is a board member of Tucson Metro Chamber and Arizona-Sonora Desert Museum. He also serves on Southern Arizona Leadership Council and with Boy Scouts of America, Catalina Council.
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TREO 2012 - 2013 BOARD OF DIRECTORS Michael S. Hammond – President & CEO, Cushman & Wakefield/ PICOR Commercial Real Estate Services
Cushman & Wakefield/PICOR offers brokerage, consulting, asset and property management for industrial, office, medical, retail, land and investment properties. Michael S. Hammond is responsible for the overall strategic direction and financial health of the company and is currently expanding the company’s reach into the Southern Arizona Hispanic community and Sonora, Mexico. He considers it a community responsibility to help TREO succeed. Hammond serves on
various boards and committees, including the 2012 Capital Campaign Committee for the United Way of Tucson and Southern Arizona and the Global Expansion Task Force of the Society of Industrial and Office Realtors. He is also the current chair of Southern Arizona Leadership Council.
William C. Harris – President & CEO, Science Foundation Arizona
Science Foundation Arizona is a nonprofit organization that was established in 2006 to focus on innovation and diversifying the Arizona economy through research and development partnerships that include Tucson-based Critical Path Institute and REhnu, a new concentrated solar energy company. SFAz supports economic development through a competitive grant process inspired by industry-university R&D partnerships. It is helping the state develop a focus on STEM (science, technology,
engineering and mathematics) education to make Arizona’s workforce and economy more competitive. William C. Harris is technical advisor to Arizona Commerce Authority. He serves with the National Academy of Sciences and on the Board of Governors for the U.S.Mexico Foundation for Science. He’s also a charter member of the Ser Cymru Oversight Committee in Wales.
Gary Hayes – Executive Director, Pima Association of Governments/ Regional Transportation Authority
Pima Association of Governments, a metropolitan planning organization with an emphasis in transportation, energy and environmental planning, also manages the Regional Transportation Authority, the fiscal manager of the multi-modal RTA plan. Gary Hayes and his staff oversee program planning and coordination with all PAG member jurisdictions. Looking to the future, Hayes sees the modern streetcar, alternative-fuel vehicles and solar power as being economically advanta-
geous to the area’s communities. He believes a growing economy provides a stronger tax base to help fund needed infrastructure and transportation growth, resulting in an improved standard of living for everyone. Associations to which Hayes belongs include American Institute of Certified Planners and National Association of Regional Councils. He received the Arizona Transit Association Friends in Transit Excellence Award in 2009.
Satish I. Hiremath, DDS – Mayor, Town of Oro Valley
Mayor Satish I. Hiremath is a practicing dentist with a history of community service who has served as mayor since June 2010. During his tenure, the Town of Oro Valley has become a model for regional collaboration, strengthening not just the town itself, but the Tucson region as a whole. Oro Valley has also established itself as a bioscience/high-tech hot spot, and continues its focus on attracting industry leaders. Hiremath is currently serving as chair of the Regional Transportation
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Authority and is a board member of the Arizona Bioscience Roadmap Steering Committee. He is past president of Southern Arizona Arts and Cultural Alliance. The Northern Pima County Chamber of Commerce recognized Hiremath as Community Leader of the Year in 2007.
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TREO 2012 - 2013 BOARD OF DIRECTORS Ed Honea – Mayor, Town of Marana
The Town of Marana government provides core services to residents and businesses owners, including police, parks and recreation and road maintenance. Mayor Ed Honea is one of seven elected officials whose job is to set policies and answer to the needs of Marana’s citizens as outlined in the town’s Strategic Plan. Honea supports the expansion of quality jobs so people can live and work in Marana. He encourages economic development
policies that are conducive to attracting, retaining and expanding business in the entire region. Honea contributes his time to Arizona League of Cities and Towns and Central Arizona Association of Governments. He is past chair of Pima Association of Governments and Regional Transportation Authority. In 2012 he was named Marana Rotary Club Man of the Year.
David Hutchens – President, UNS Energy Corp. & Tucson Electric Power
Tucson Electric Power provides safe and reliable electric service to more than 400,000 customers in the Tucson metropolitan area. David Hutchens oversees operations, public policy, communications, information services, human resources and customer service. TEP is in the midst of a dramatic expansion in renewable energy resources that will see more than 200 megawatts of solar energy installed in the Tucson area by the end of 2013.
Hutchens recognizes that TREO’s efforts to attract and retain local businesses contribute directly to the longterm economic viability of our region. His participation in the community includes past president and current board member of 88-CRIME, member of Southern Arizona Leadership Council, Tucson Conquistadores and the Governor’s Solar Energy Advisory Task Force.
Scott Hutchings – Manager, Government and Public Affairs, Waste Management
Waste Management is a leading provider of comprehensive waste management services in Arizona and across North America. It is the largest residential recycler and a leading developer, operator and owner of waste-toenergy and landfill gas-to-energy facilities in the United States. WM has nearly 1,500 employees and 500,000 customers statewide and understands that providing viable employment for Arizona residents is critical to a
thriving economy. The Waste Management Phoenix Open generated about $222 million in revenue for the state in 2011. Of increasing importance to WM is incorporating cuttingedge technologies into its business model, such as collecting organic materials from the Arizona Frito Lay plant for use in the development of biomass fuels.
Daisy M. Jenkins – Executive VP, Chief Administrative/HR Officer, Carondelet Health Network
Carondelet Health Network is Southern Arizona’s largest nonprofit Catholic healthcare system, and is a vibrant healing ministry that provides access to excellent care for the people of our community. Daisy M. Jenkins’ role is to guide the ministry’s relationship with its 4,800-plus associates and achieve a culture of excellence that advances Carondelet’s purpose and mission. She believes that healthcare and education are key drivers behind strong economic development and are
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very important to those investing in our community. Jenkins is past co-chair of the Blueprint Mobilization Committee. She serves on various community boards, including United Way of Tucson and Southern Arizona, Tucson Airport Authority, University of Arizona President’s African American Advisory Council and the UA’s James E. Rogers College of Law Board of Visitors.
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TREO 2012 - 2013 BOARD OF DIRECTORS Gregg R. Johnson – Campus Director, University of Phoenix, Southern Arizona Campus
With more than 100 campus locations in 36 states and online, University of Phoenix provides working adults with higher education opportunities – the foundation on which economic development is based. Gregg R. Johnson’s role is to lead the Southern Arizona campus and its staff in preparing students with real-world skills. University of Phoenix recently launched an iPhone app to help deliver a 21st-century education experience. Johnson holds key community positions that
include chair of the governance committee and executive committee member of Community Food Bank, chair of the planning committee for Workforce Investment Board and board member of Boys & Girls Clubs of Tucson. He is a recipient of the Distinguished Teaching Award, University of Phoenix.
Bill Kelley – CFO, Diamond Ventures
Diamond Ventures is a diversified investment company that specializes in real estate and venture capital in Southern Arizona with a portfolio exceeding 14,000 acres. Bill Kelley is responsible for marketing and management of the existing industrial/business park and commercial portfolio, as well as corporate financing. The company’s entire staff supports economic development, believing it creates wealth for the community and growth
in philanthropy. Diamond Ventures recently completed nearly $21 million in real estate acquisitions for its Southwest real estate opportunity fund. Kelley’s community involvement includes work with DM50, Fox Tucson Theatre Foundation and Integrative Touch for Kids. He’s an alumnus of Greater Tucson Leadership and he served as treasurer for Jim Kolbe’s congressional campaigns from 19822004.
Lawrence Mehren – President & CEO, Accelr8 Technology Corporation
Accelr8, which recently relocated to Tucson, develops instruments used for the rapid detection of pathogenic microorganisms, specifically a system that can count and identify dangerous pathogens and their drug resistance expression within the same day of obtaining a patient specimen. This speed allows for a significant improvement in the treatment of the more than 1.7 million people in the U.S. who contract a hospital-acquired infection
each year. Lawrence Mehren believes that as a biotech company, Accelr8’s most important asset is its people. He believes that creating a biotech hub in Southern Arizona will attract more employers, which will encourage the best and brightest to stay in the region and draw others to the area, as well. Tucson is already in the process of becoming a biotech hub with its rare mix of climate, affordability, world-class university and job opportunities.
Frances McLane Merryman – VP, Wealth Strategies Group, The Northern Trust Company
Northern Trust is a leading provider of investment management, asset administration and fiduciary services for institutions and affluent individuals worldwide. Frances McLane Merryman works with clients and prospects to help them identify their goals and connect them with the appropriate partners within the company. She believes that clients’ lives should drive their investment strategy – not the other way around. Northern Trust considers busi-
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ness, personal, family and philanthropic aspects in customizing goal-driven investing. Merryman is active in the community and focuses her volunteer time on economic development and education issues. Among the organizations she serves are Critical Path Institute, Tucson Airport Authority, Southern Arizona Leadership Council and Desert Angels.
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TREO 2012 - 2013 BOARD OF DIRECTORS Dennis Minano – Vice Chair, Sonoran Institute
Dennis Minano is a strategic advisor to business and government entities in the U.S., Canada and Mexico on energy, environmental and infrastructure matters. He supports TREO in its core areas to secure local reinvestment and attract new growing businesses. He advocates for local, state and border infrastructure improvements to encourage relocation of companies that participate in global trade. He serves on TREO’s Compensation and Nominating Committee. Minano was recently ap-
pointed to the University of Arizona Health Network board of directors and volunteers on the board of 88-Crime. In 2009 he was recognized as TREO Volunteer of the Year.
Omar Mireles – Executive VP, HSL Properties
HSL Properties is a real estate investment firm with a focus on apartment investment, development and management. HSL is the largest owner and operator of apartment communities in Southern Arizona. Omar Mireles manages the company’s property portfolio, including acquisitions, dispositions, financing and development. HSL is answering the economic demand for more rental housing with the development of three new luxury, energyefficient apartment communities. Mireles be-
lieves that the social and economic vitality of our community depends on growth and diversification of the area’s employment base, and to achieve this it is essential to have a unified voice promoting Tucson. He is on the board of directors of Arizona Multihousing Association, Salpointe Catholic High School and Tu Nidito Children and Family Services. He is a member of Tucson Airport Authority and Tucson Conquistadores.
Colleen Niccum – Director, Community & Government Relations, Raytheon Missile Systems
With 2011 sales of $5.6 billion, Raytheon Missile Systems is the world’s largest developer, producer and integrator of weapon systems for the U.S. and allied forces, employing 10,500 in the Tucson area. Colleen Niccum’s responsibilities include working with community and state organizations to support economic and workforce development in Arizona and promoting the company’s education outreach efforts. She believes that community
groups must work together on a regional approach to economic development that leverages the strengths of the entire community. Niccum serves on a number of community boards, including Tucson Values Teachers, Tucson Metro Chamber and Expect More Arizona. She is also a governor appointee to the Arizona Ready Council. She was named the 2012 Woman of the Year by Greater Tucson Leadership.
Judith Patrick – Board Chair, SCF Arizona
As the largest and longest-operating worker’s compensation insurance company in the state, SCF Arizona is committed to the success of both small and large businesses and to the safety of their employees. In her position as board chair, Judith Patrick helps set the company’s vision and direction while overseeing its financial reporting and legal compliance as its chief governance officer. SCF is in a unique position as an economic development engine fueled by private enterprise and is dedicated
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to growing our communities and our state. By forming partnerships, SCF creates beneficial development opportunities for businesses, the community and employees. Patrick is on the board of Southwestern Fair Commission and is a member of Tucson Airport Authority.
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TREO 2012 - 2013 BOARD OF DIRECTORS Tony Penn – President & CEO, United Way of Tucson and Southern Arizona
United Way of Tucson and Southern Arizona leverages partnerships with more than 70 nonprofit agencies, community leaders, corporations and local governments to advance the common good. Each year, the organization positively touches the lives of more than 100,000 children, families and seniors. United Way Worldwide recently recognized the local organization as one of the top 25 United Ways in the nation for its community impact. The organization strategically focuses on education, income and health,
which encompass its mission of “Building a Better Community for All.” Tony Penn believes these strategies support economic development because we all win when children succeed in school, families are financially independent and people are healthy. Penn also serves on the Tucson Metro Chamber board.
Virgil Renzulli – VP for Public Affairs, Arizona State University
Virgil Renzulli represents one of the nation’s top universities and communicates to state and municipal elected officials, business and chamber of commerce leaders, community groups, potential students and the news media. ASU is a major player in the state’s economic development as Arizona’s largest producer of bachelor’s degrees and a top research institution. It patents and licenses intellectual property, runs two research parks, spins off new companies and plays an important role in attracting high-tech firms to the
state. ASU has been recognized as a model in higher education for being inclusive and geared toward solving real-world problems. Renzulli is a member of East Valley Partnership, Greater Phoenix Chamber of Commerce, WESTMARC, Tempe Chamber of Commerce and Phoenix Community Alliance.
Walter Richter – Administrator for Corporate Public Affairs, Southwest Gas
Walter Richter is responsible for local government relations in Southern Arizona. His role helps to ensure that Southwest Gas continues to provide outstanding service for businesses and homes. The company supports TREO in order to create a positive business environment and a healthy economy in Southern Arizona. In addition to his work as a board member with TREO, Richter serves on the board of Downtown Tucson Partnership as well as Metropolitan Pima Alliance. He is also chair of the candidate selection committee of
Tucson Metro Chamber. He previously oversaw service planning for the Yuma district and served as board chair of the Yuma County Chamber of Commerce. He served as president of the Yuma Executives Association.
Jonathan Rothschild – Mayor, City of Tucson
The mayor sets goals for our city and convenes people and organizations to help meet those goals. He believes that city leaders have a vested interest in helping businesses succeed and growing our economy. Two areas Mayor Jonathan Rothschild is focused on are science and technology companies at all stages, from startup to expansion to relocation, and trade with Mexico and beyond. He sees Tucson as having natural advantages as both a science city and in its proximity to Mexico. Roths-
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child volunteers with Operation Deep Freeze. He is past president of Casa de los Niños, Handmaker Jewish Services for the Aging and Temple Emanu-El.
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TREO 2012 - 2013 BOARD OF DIRECTORS David C. Smallhouse – Managing Director, Miramar Ventures
Miramar Ventures is an investment partnership that focuses on active and passive investments in real estate, private equity and venture capital. The company is currently active in local early-stage venture investing in the industry sectors of medical devices, alternative energy, life sciences and information technologies. In his position, David C. Smallhouse reviews potential opportunities and recommends investments to partners. He has recently seen a trend toward more technology-based
companies seeking early-stage investment. Smallhouse believes that our region can realize a stronger economy with better jobs and stability over time and that TREO is the voice reminding local leaders to remain focused in areas of competitive advantage. His community involvement includes serving with Arizona-Sonora Desert Museum, Desert Angels, National Law Center for International Free Trade, Tucson Airport Authority and Tucson Conquistadores.
Philip B. Tedesco – CEO, Tucson Association of REALTORS/MLS
Philip B. Tedesco oversees Southern Arizona’s largest trade association, representing more than 5,000 professionals in the real estate industry and supporting the growth of the region’s real estate market. TAR/MLS is a cooperative real estate database of listing and sales information, last year facilitating more than $2.2 billion in total sales volume. Tedesco also serves as executive director of the Tucson Realtors Charitable Foundation, a separate nonprofit that supports the commu-
nity by enhancing its quality of life through financial programs, education and housingrelated initiatives. He believes economic development is vital to Tucson’s future both from the perspective of attracting new companies to the region and retaining those already here. Tedesco’s community work outside the real estate industry includes serving as president of Rotary Club of Pantano.
Leslie P. Tolbert – Senior VP for Research, University of Arizona
The University of Arizona provides education, research and service to the state of Arizona. Leslie P. Tolbert oversees a $600 million research enterprise and the university’s graduate programs. With the success of UA and Tucson being intimately intertwined and each thriving only as the other thrives, she understands that UA must be a strong economic driver for the region. As federal funding for university-based research becomes more limited, UA strives to ensure the competitiveness
of its faculty in pursuing groundbreaking innovation while also providing a rich researchinfused education. Broadening and deepening partnerships with industry is key to both areas. Tolbert is actively involved in a number of community organizations including Southern Arizona Leadership Council, Arizona Biosciences Roadmap Committee and Large Binocular Telescope.
Dr. Raymond L. Woosley – President, AZCERT
Former VP for health sciences at the University of Arizona and dean of the College of Medicine, and founder of Critical Path Institute, Dr. Raymond L. Woosley now oversees AZCERT. The nonprofit organization sponsors CredibleMeds.org, a web-based educational program with more than 50,000 unique visitors each month. AZCERT has improved the safe use of medications and reduced the unwanted side effects of medications since
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2000. In addition to being a member of the TREO board of directors, Woosley serves on the UA College of Science Board of Advisors and is Professor Emeritus at the Sarver Heart Center and BIO5. He is also a scientific and medical advisor for TREO, Diamond Holualoa Capital and DxInsights.
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There’s no limit to how far we can grow. CenturyLink proudly supports TREO. CenturyLink understands the important role that TREO plays in the Southern Arizona business community. CenturyLink knows that TREO is working to build a successful future and this is done by working together so we can build a thriving community that prospers.
See how we connect at centurylink.com.
CenturyLink is proud to support TREO.
© 2012 CenturyLink, Inc. All Rights Reserved. The name CenturyLink, the pathways logo, and the CenturyLink brand sub-graphic are trademarks of CenturyLink, Inc.
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TREO 2012 - 2013 BOARD OF DIRECTORS Bruce A. Wright – Associate VP, University Research Parks, University of Arizona
The Office of University Research Parks operates University of Arizona Science and Technology Park, UA Bio Park and Arizona Center for Innovation. The group contributes to regional economic growth utilizing research parks and business incubators to advance technology, commercialization and business attraction. New developments include expansion of the Bio Park as a home for life and bioscience companies and the Solar
Zone at UA Tech Park as a site for solar energy research and manufacturing. The Border Technology Center is testing and evaluating defense and border security technology. Bruce A. Wright is past president of Association of University Research Parks, a member of RTA Citizen’s Advisory Committee and Southern Arizona Leadership Council and past chair of Southern Arizona Chapter of the American Red Cross.
OF COUNSEL Lawrence M. Hecker – Partner, Hecker & Muehlebach
Lawrence M. Hecker is a senior partner at Hecker & Muehlebach law firm. He has recently seen increased business startup activity involving technology-based and scalable companies and more local investor interest. Hecker believes the success of his business depends on a vibrant, sustainable and diversified economy and that TREO’s strategy of recruitment, retention and job creation is the best way to achieve that goal. Hecker serves
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as TREO’s legal counsel and commits time to various community organizations, including serving as chair of Pima County Bond Advisory Committee and IdeaFunding. He is a board member of Downtown Tucson Partnership and Tucson Regional Entrepreneurial Economy Taskforce. He is also an adjunct professor at the University of Arizona James E. Rogers College of Law, teaching Law and Entrepreneurship.
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From left – TREO President & CEO Joe Snell, Arizona Commerce Authority President & CEO Sandra Watson, Aris Integration Founder & CEO Duane Armijo, Pima County Board of Supervisors Vice Chair Sharon Bronson and Pima County Board of Supervisors Chair Ramon Valadez.
PHOTO: CHANCE AGRELLA
BizSUCCESS
Tenacity Attracts High-Tech Construction Pioneer By Eric Swedlund Powerful collaboration between TREO, private industry and government resulted in the latest economic score for the Tucson region – with the announcement by Aris Integration that it will set up shop in Tucson. Aris, a manufacturing and construction pioneer in energy-efficient building technologies and design, will establish its headquarters in Tucson, with 600 jobs expected in the next five years. Aris will manufacture a cost-effective and lightweight panelized wall system that combines green building technologies with the versatility to be used across housing, commercial and government markets. “This is a system that is far more energy efficient than anything that is out there,” said Duane Armijo, founder and CEO of Aris. “We can produce these things with a cost that’s competitive with standard construction practices. Usually what kills great ideas in the construction industry is they’re expensive. The platform we’re building 112 BizTucson < < < Winter 2013
in Tucson will be a prototype for everything else we do.” Aris will begin hiring this fall, with short-term goals of 250 skilled workers and a total of 600 by 2017. Tucson will also be Aris’s second of six planned regional manufacturing locations across the country. Locally, Aris anticipates a 250,000-square-foot facility will be operational by the end of 2013. Joe Snell, president and CEO of TREO, said the Aris announcement is the culmination of four months of work between the company, Arizona Commerce Authority, Pima County and TREO. Like the last three TREO announcements in August and September – Accelr8 Technology Corporation, Integrated Technologies Group and American Tire Distributors – Snell cited a potent working collaboration in successfully attracting Aris to Tucson. “Our strong partnerships among the state, county, city and business community and our tenacity are paying off in the form of new jobs and economic
prosperity,” Snell said. “It’s part of our culture to embrace the environmental sustainability and green technology movement and Aris Integration fits very well with our region’s assets as well as our vision of providing innovative products and services that contribute to important industries.” Ramon Valadez, chairman of the Pima County Board of Supervisors, said, “What excites me about this announcement are the aspects of Aris Integration that truly reflect our community’s foundation and values – sustainability, energy efficiency and innovative thinking.” The company’s “vision of changing the construction process and industry through new building technology is revolutionary and Pima County will be a strong partner. This announcement is also important to the construction industry. While a recovery is slow, it is gaining speed and 600 new jobs will greatly help accelerate it locally.” Sandra Watson, president and CEO www.BizTucson.com
of Arizona Commerce Authority, said the announcement reflects the state’s advantages in a talented work force and favorable business climate and will be a boon to our manufacturing sector, which accounts for $14.6 billion in exported goods and 151,000 high-paying jobs in Arizona. “In addition to its cutting-edge technology, the company’s passion and excitement can lead the way in developing new opportunities in the construction industry and that’s really exciting for us in Arizona,” Watson said. Armijo said negotiations that landed Aris in Tucson were persuasive and quick. “Four months is light speed to get something like this done. It has been a serious team effort,” he said. A Southwest native and general contractor since 1979, Armijo moved to Arizona from Colorado in 2005 and founded Chaparral Construction. Centex Homes offered Armijo a contract to provide framing and trim for masterplanned communities on the west part of Phoenix and Armijo began to package skilled trades together. “What I saw as the problem was too much building and not enough skilled people. There was a superintendent for every single trade and the builders were trying to manage all these superintendents and it wasn’t working,” Armijo said. “At Chaparral, what we did was look at integrating – and that’s where the initial idea came. We looked at framing, dry wall, stucco, paint and trim and started to integrate those trades. That really streamlined the building process because Centex now had to call only one company for all those trades.” Chaparral grew to 700 employees, 80 vehicles and was delivering 35 homes per week – but then the housing bust hit. “Unfortunately, as quickly as it started, the bottom fell out of the industry and we were one of the first major companies to shut our doors,” Armijo said. Armijo was lucky enough to meet a member of the U.S. Green Building Council and get the idea to design a sustainable building system. Aris began the research and development phase four years ago and went to market in www.BizTucson.com
2012. “This type of building system is going to be the norm over the next 10 to 20 years and we started to develop a strategy in late 2007,” Armijo said. Aris first began working for the Department of Defense on a panelized building system. The new panels integrate light-gauge-steel structural framing and ultra-lightweight-foam insulation with sustainable materials and energy-efficient design. The process yields cost savings, drastically reduced building times and fully customizable modification potential. “I remember doing that first building at a little shop here in Tucson and we hauled it out to Gila Bend to the contracting agent to show him this is the future of construction. We actually sold our first building to that contracting
“
This building system will change the way people build.
”
– Duane Armijo Founder & CEO, Aris Integration
agent three years ago and it’s the mess hall at Gila Bend,” Armijo said. “Energy audits said the building that took five men five hours to erect was 10 times more energy efficient than a standard building.” Though Aris’ system met the needs of the Department of Defense, the drawdown of war efforts in Iraq and
Afghanistan caused Armijo to turn his focus to residential and commercial construction. “Our vision early on was to find a new way to build, not just a new product,” Armijo said. A key partner for Aris is the UnitedKingdom-based Fusion Building Systems, which developed a system years ahead of its time and has a 12-year performance history, with more than 5,000 products “in the ground” in Ireland and the UK. The company’s Tucson facility will bring together manufacturing, building and logistics, with an opportunity to be an agent of change on the global stage. “As we started developing this system we always knew it had global applications and we knew that if we were going to have an impact, it had to be able to be utilized across all building sectors,” Armijo said. “We spent four years designing a product line that’s versatile enough to be cost effective for low income housing, custom homes, commercial, industrial – and all of our buildings are 60 to 70 percent more energy efficient than standard construction.” A veteran himself, Armijo said Aris has a Veteran’s First Initiative, with a focus on training veterans in manufacturing, construction and logistics, as well as helping them start their own businesses, training them to be contractors specializing in the Aris building system. That focus connects directly with Pima County’s efforts, said Sharon Bronson, vice chair of the Pima County Board of Supervisors. “One of the hallmarks of Pima County’s support for businesses is our focus on workforce development,” Bronson said. “Pima County opened the nation’s first workforce center aimed at helping military veterans find jobs, training, benefits and support services in July. This center is ready to assist right away to hire our local veterans.” Aris is poised to have an impact on the global construction industry. “What we will do here in Tucson is evaluate and design a platform that will work not only here, but around the world,” Armijo said. “People are trying to do what we do, but not at the level that we are. This building system will change the way people build.” Biz Winter 2013 > > > BizTucson 113
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PHOTO: BRENT G. MATHIS
BizSUCCESS
Lawrence Mehren President & CEO Accelr8 Technology Corporation
Cascading Cooperation Results in Accelr8 Win for Tucson By Dan Sorenson Accelr8 Technology Corporation’s August announcement that it was moving its headquarters and research operations to Tucson was the result of cooperation between local entities that in the past often competed. Accelr8 scientists are developing a new rapid diagnostic system for identifying and counting dangerous pathogens and their drug resistance. The in-development BACcel system would provide information needed to identify specifically targeted treatment within one day of gathering a patient specimen – a great improvement over existing technology’s wait of two or three days when battling the rising problem of hospital-acquired infections. CEO and President Lawrence Mehren said the top priorities in relocating Accelr8 were finding specialized wet lab space, a skilled biotech workforce and positive economic conditions. Mehren projects hiring 65 high-skilled technologists in the first three years and www.BizTucson.com
ultimately employing 200 to 300 workers. There was positive momentum for Tucson going into negotiations. Though the company was in Denver, its new owners had strong Tucson ties. Mehren left Ventana Medical Systems in 2011, after having been senior VP, CFO and head of global business. John Patience, Accelr8’s chairman, and director Jack Schuler are former Ventana Medical Systems board members. There were hurdles to overcome, however. Mehren said Tucson was competing with Denver and Michigan for their business. “Colorado was clearly our first choice – we were already there,” Mehren said. But the right lab space deal wasn’t offered there and Michigan was quickly out of the running for unspecified reasons. Fortunately, Mehren’s Tucson contacts funneled him to others who ultimately nailed down that No. 1 need – wet lab space. To hear them tell it, it
was a case of cascading cooperation. His first contacts were almost simultaneous, with Tucson Mayor Jonathan Rothschild and commercial real estate broker Bob Davis. Rothschild already knew Mehren socially and through his law firm, Mesch, Clark & Rothschild. Davis was recommended to him by another business contact. “He contacted me,” Rothschild said. “I put him in contact with Maricela Solis, my staff business advocate, and Chris Kaselemis (of the city manager’s office), who sat him down and walked him through some of what we had available.” The mayor’s staffers and Davis directed Mehren to TREO. “We did what TREO was mandated to do – be a single point of contact and a coordinating agency,” said Joe Snell, TREO president and CEO. “They (TREO) in the best possible way acted in a coordinating role,” said Mehren, who has since joined the TREO board of directors. “They continued on page 121 >>> Winter 2013 > > > BizTucson 115
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BizSUCCESS
Building a World-Class Diagnostics Industry By Eric Swedlund Diagnostics – it’s a biosciences niche already considered world-class in Southern Arizona. Now narrowing the focus to tissue diagnostics is crucial in attracting and growing bioscience companies regionally. “We have probably the leading tissue diagnostics in the world in Tucson, so that certainly caused it to come to our attention,” said Dr. Raymond L. Woosley, a TREO consultant charged with helping to develop and refine the organization’s bioscience business development strategy. “There are a lot of people working on personalized medicine, a lot of people working on drug discovery, nanotechnology and different biotech platforms – but the one sub segment of biosciences that seems to fit best with what we have strength in is diagnostics,” Woosley said, with Ventana Medical Systems at the heart of the industry here. “Economic development groups around the country are all making a push for bioscience,” said Joe Snell, president and CEO of TREO. “It’s a hot industry that everyone wants – but to stand out, the Tucson region will have to target its energies. This is why we commissioned this strategy.” Said Woosley, “Everybody wants to focus on bioscience, and they’re outspending us in ways we could never compete. Arizona just doesn’t have the resources – but we do have some unique strengths, and with some wise investments, we can leapfrog ahead and focus on what’s going to be the benchmark technology of the future among the platforms we have strengths in. You can’t do everything.” Woosley is founder of AZCERT and Critical Path Institute, and former dean of the University of Arizona’s College of Medicine and VP for health sciences. He said TREO’s Leadership Exchange fact-finding trip to San Diego in www.BizTucson.com
May examined how that city developed into a mecca for bioscience companies and what lessons Tucson could apply toward similar goals. “In San Diego, we saw that platform technologies that started 30 years ago are the biggest blockbusters around,” he said. “What we heard and learned on the trip is don’t plan for today. Plan for the long run and look for technologies that are the basis for the future.” Woosley saw that San Diego’s successful future – which leaders there began planning for in the 1980s – was realized in part because of a specific focus on monoclonal antibodies, an emerging area of bioscience at that time that now accounts for a significant portion of therapies for cancer and arthritis. Monoclonal antibodies became a “gold rush,” according to one 2007
“
Plan for the long run and look for technologies that are the basis for the future.
”
– Dr. Raymond L. Woosley
TREO consultant
study, and a 2012 report from a French pharmaceutical company predicts the worldwide market for monoclonal antibodies will reach $60 billion in 2014. San Diego’s bioscience industry is a roughly $9 billion a year economic engine, with 44,000 employees at more than 700 companies. Coordinated planning, sustained commitment and
capitalizing on the success of leading companies to generate a critical mass are all lessons for Tucson, Woosley said. The niche focus that worked so well for San Diego and other regions is a model for Tucson, Woosley said, only in this region, tissue diagnostics is the area that holds so much promise. Already in Southern Arizona, Ventana Medical Systems is setting the standard for tissue diagnostics, one of the foundations of a growing shift to more personalized medicine, and an era that targets treatments to a specific patient, based on genetic markers. As part of that trend, new drugs are developed along with companion diagnostic tests. “Diagnostics can and should be the core of bioscience expansion in Southern Arizona,’’ said Ventana Medical President Mara Aspinall. “Number one, we have strong diagnostics expertise at Ventana Medical and several startups in the region as well as the University of Arizona,” she said. “Number two, the capital investment needed to create and grow a diagnostics company is less than other types of healthcare investments. Our resident venture firms and angel groups have the financial capability to fund the initial investment rounds for these new diagnostic firms. Number three, Tucson is headquarters to DxInsights, an independent, nonpartisan nonprofit focused on diagnostics industry education and research.” Woosley said Ventana Medical has been a leader in companion diagnostics. “With diagnostics, we’re well positioned with Ventana and other start-up companies.If we plan now we can be in a really great position. Successful companies that are based on a cutting-edge platform technology are likely to have spin outs and be magnets to attract other companies.” continued on page 121 >>> Winter 2013 > > > BizTucson 117
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BizSUCCESS
Key Industries on Growth Path By Eric Swedlund In addition to developing diagnostics as a growing field in the region’s biosciences industry, TREO’s three other main focus areas saw significant progress in 2012.
Aerospace & Defense
Already among the top five metro areas nationwide for its concentration of employment in aerospace & defense, Tucson saw continued progress in 2012. In September, California-based Integrated Technologies Group announced it will open a new manufacturing center in Tucson, with a 25,000-square-foot facility in Butterfield Business Park that will employ 150 to 200 people over the next 5 years, with a projected $265 million economic impact on the Tucson region. Raytheon Missile Systems secured several large federal contracts, including a $925 million contract in July for the development of the Standard Missile-3 Block IIA missile. Other major contracts for Tucson’s Raytheon branch included $349 million to provide heavy anti-tank missiles, $314 million for low-rate initial
production of Standard Missile-6 all-up rounds, $106 million for Aegis Radar Work, $139 million to provide engineering services for the Patriot Air and Missile Defense System and $51 million for Patriot Missile upgrades. Other aerospace & defense highlights for 2012 include a new two-year, multi-million-dollar contract for NP Photonics, and boosted revenue and new hiring at Bombardier Aerospace, B/E Aerospace and Ascent Aviation Services.
Solar
On its way to completing several large solar projects in 2012, Tucson Electric Power received the Utility of the Year award from the Solar Electric Power Association, which cited TEP’s continued investment in solar energy. TEP began 2012 with 45 megawatts of solar-generating capacity – enough to power 8,000 homes. By the end of 2013, the utility expects to surpass 250 MW of solar-generating capacity, enough to power 50,000 homes. TEP’s two biggest projects of the year were in the Avra Valley area, with a 25-MW photovoltaic array built by
TEP SOLON – Arrays at the Solar Zone www.BizTucson.com
SunEdison, and a nearby 32-MW DC – or 25-MW AC – plant built by NRG Energy and Tempe-based First Solar. Tucson Airport Authority in October received a $5.7 million grant from the Federal Aviation Administration to design and construct the first phase of a 2.5-MW solar canopy array that will shade the main parking lot. In August, Davis-Monthan Air Force Base began work on a 14.5-MW solar array, the Air Force’s largest, which will provide more than one-third of the base’s electricity needs. On the research and development side, Tucson’s REhnu broke ground in January on the company’s first installation. The company’s innovative design comes from University of Arizona astronomer and optical scientist Roger Angel, who’s found a way to boost solar collection by using mirrors to concentrate sunlight on high-efficiency collectors. REhnu received enough investment to construct its first 20-kilowatt solar system, a prototype the company hopes will prove its concept to make solar energy economically competitive with fossil fuels, without government continued on page 121 >>>
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NEW BUSINESSES TO THE REGION OptumRx Products manufactured or industries served:
OptumRx is an innovative pharmacy benefit management business overseeing the prescription drug benefits of commercial, Medicare and other governmental health plans, as well as those of employers and unions through a national network of 64,000 community pharmacies and state-of-the-art mail service pharmacies in California and Kansas. Projected Tucson full-time employees over 3 years:
400 in Tucson, 7,500 nationwide 5 years: 9,000 nationwide Why you chose Tucson: Tom Ferguson – Customer Service Director OptumRx
A robust, diverse labor market and welcoming business climate were the key drivers, along with a favorable regulatory climate. Other drivers were geographic location, quality of life for employees and proximity to pharmacy schools, drug wholesalers and shipping services. Involta Products manufactured or industries served:
Involta builds, owns and operates multi-tenant data centers in secondary markets throughout the United States. We use the internal resources necessary to build and operate data centers to become an extension of our customers’ IT departments. Involta provides data center services to domestic and international clients from a variety of industries, sizes and maturity. The Involta team is involved in building and acquiring physically secure facilities, providing toplevel IT services to clients, managing projects from start to completion, providing assistance to clients undergoing compliance audits and delivering complex data protection and management services. Projected Tucson full-time employees over 3 to 5 years: Unknown Troy Ward – Regional Sales Director Involta
Why you chose Tucson:
We came to Tucson at the request of a customer. They named three cities to evaluate and we felt Tucson best matched our business model and offered an excellent opportunity for us to serve Tucson and expand our footprint. American Tire Distributors Products manufactured or industries served:
Replacement tire market, servicing tire and automotive service retailers. We distribute virtually all major tire brands including Michelin, Goodyear, Bridgestone, Firestone, Continental, BFGoodrich, Uniroyal, Dunlop, Nexen, Kumho and many others. ATD also supplies custom wheels as well as tools and supplies used for tire and wheel installation. Projected Tucson full-time employees over 3 to 5 years:
Employee count will grow as sales rate grows
Why you chose Tucson: Steve Schrepfer – Tucson GM American Tire Distributors
Tucson is ATD’s second location in Arizona, which enables us to better service our customers in Southern Arizona and Southern New Mexico.
Integrated Technologies Group Products manufactured or industries served:
Anil Nanji – CEO Integrated Technologies Group
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Custom engineered magnetic assemblies, electrical machines – such as motors, generators, and actuators – and specialty cables for the semiconductor, medical, energy, aerospace, industrial automation and research and development markets.
Projected Tucson full-time employees over 5 years:
150 to 200
Why you chose Tucson: Proximity to Nogales, Son., where we have a plant; positive business climate; proximity to the University of Arizona; good workforce skills; growing technical business base and favorable cost base. www.BizTucson.com
BizSUCCESS Accelr8
Diagnostics Industry
Industry Updates
didn’t push people out of the way, they brought people together.” One of the values TREO provides to business development prospects is connectivity with private sector leaders. Relocation decision makers want to see a strong private sector represented in development efforts before they invest billions into an economy, and prospective employers look for strong commitment from companies who will be their peers. TREO Chairman’s Circle and board members are closely engaged in the process and client meetings from the beginning, and many of these leaders met with Mehren on an ongoing basis to ensure him that the Tucson region was the right place to do business. Sites in and around Tucson and Oro Valley were scouted. Oro Valley was a logical locale, with Ventana Medical Systems and other bio techs already located at Innovation Park. But Mehren said they needed very specific, customized wet lab space – and quickly. Pima County Administrator Chuck Huckelberry, in on the hunt early, said it would have been impossible for the Town of Oro Valley to spend public money on lab space in a privately owned Innovation Park building. But he said the county had unoccupied space in its Herbert K. Abrams Public Health Center, 3950 S. Country Club Rd. Beyond the dedicated space, Huckelberry said the local groups needed to come up “with $1.4 million to get Accelr8 to move here.” That was the amount he said Denver was willing to come up with to keep Accelr8. “One thing public agencies can’t do is give gifts,” Huckelberry said. “And so the theory here is that it (the Abrams Health Center) is a public building – and it just so happens that the tenant improvements for the space Accelr8 wants to lease is about $1.4 million. How is that not a gift? It’s a short-term lease. When they move out, it’s an asset of the county and the hope is we’ll use it (again). It’s an incubator.” The Arizona Commerce Authority came in with a low-interest $750,000 loan for improvements and work is underway for an early 2013 completion. “Everybody had a hand in making it happen,” Snell said.
Ventana and Sanofi are the cornerstones of what Oro Valley Mayor Satish Hiremath hopes will become a cluster of companies working in similar fields at Innovation Park. “San Diego and the Boston area have been very successful with clustering. The Town of Oro Valley has taken a look at that and asked where these successful areas are and what they’ve done,” Hiremath said. “Companies are looking for synergies with other companies,” he continued. “By clustering you’d think it would create negative competition between these companies fighting for the same employees – but it increases exponentially the talent. They view it as a must, in order for their companies to grow. The whole clustering aspect of it is really genius. Dr. Woosley understands that it’s a positive to embrace for these companies.” Other areas of the Tucson region also have been working to attract bioscience companies, including Pima County with its recent build out of wet lab space for Accelr8 Technology Corporation, as well as the UA Science & Technology Park and the new BioPark, which recently completed infrastructure improvements. Woosley also set out to identify what emerging startup companies and relocating companies will need – primarily access to lab space, clinical collaborators and capital investment. Woosley said the push toward diagnostics is meant to guide specific economic development and recruitment efforts for TREO. It is not a statement that Tucson’s other industries are losing ground. A successful push in science and education will help attract talent needed to serve other industries, from diagnostics to optics, he said. “We have outstanding astronomy, optics and aerospace – and those are very important for something like bioscience. The sciences feed off each other and cross-fertilize,” Woosley said. The bioscience strategy will be highly prescriptive as to key actions to take to attract and grow new bio companies, and will be used to inform how TREO applies its resources to a competitive market. It will be complete and rolled out to the community in early 2013.
subsidies. Angel’s research group at the UA also received a $1.5 million Department of Energy grant in July to improve the mirror-making process for commercial applications. In June, Tucson’s SOLON Corporation won the prestigious Intersolar Award 2012 in the photovoltaic category, recognizing SOLON’s patent-pending plug-and-play commercial rooftop system as one of the most pioneering technologies of the year.
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Transportation & Logistics
TREO continues its push to market Tucson as a transportation and distribution hub that capitalizes on its unique geography near the Mexican border and California. In August, North-Carolina-based American Tire Distributors announced its purchase of a parcel at the southwest corner of Valencia Road and Alvernon Way to build a 125,000-square-foot distribution center. The center will be the company’s second Arizona facility and is designed to service tire retailers throughout the state, as well as New Mexico and California. In February, the Port of Guaymas, about 260 miles south of the U.S.-Mexico border, received its first shipment of container cargo. Tucson can serve the deep-water port as a hub for receiving and redistributing goods to the U.S. market. In August, Tucson Mayor Jonathan Rothschild took his first official trip to the port city, with TREO President Joe Snell joining the mayor’s delegation. Biz Winter 2013 > > > BizTucson 121
TREO INVESTORS Accelr8 Technology Corp. Arizona Canning/La Costeña Arizona Commerce Authority Arizona State University BBVA Compass Bank BeachFleischman BizTucson Blue Cross/Blue Shield of Arizona Bourn Partners CAID Industries Carondelet Health Network Casino Del Sol and Resort CBRE CenturyLink Chase COX Communications Cushman & Wakefield/PICOR Commercial Real Estate Services Diamond Ventures DPR Construction El Rio Community Health Center
Freeport-McMoRan Copper & Gold GEICO HDR Hecker & Muehlebach Hilton El Conquistador Resort Horizon Moving Systems HSL Properties Jim Click Automotive Team Lewis and Roca Milender White Construction Miramar Ventures Nova Home Loans Peto & Company CPAs Pima Association of Governments Pima Community College Pima County Providence Service Corporation Randstad Staffing & Recruiting Raytheon Missile Systems SCF Arizona Science Foundation Arizona SOLON Corporation
Sonoran Institute Southwest Gas Corporation Sundt Companies The Northern Trust Company The Temp Connection Tucson Airport Authority Tucson Association of Realtors TMC Healthcare Tucson New Car Dealers Association University of Arizona Science and Technology Park University of Arizona University of Phoenix UNS Energy Corp./ Tucson Electric Power U.S. Trust/Bank of America Vantage West Credit Union Ventana Medical Systems A member of the Roche Group Venture West Waste Management Wells Fargo Bank Wist Office Products
TREO STAFF (From left) Chance Agrella, Creative Services Manager; Laura Shaw, Senior VP, Marketing and Communications; Michael Guymon, VP of Regional Development; Daniela Gallagher, Economic Development Manager; Patricia Young, Administrative Services Manager; Joe Snell, President & CEO; Jerah Yassine, Executive Administrative Assistant; David Welsh, Executive VP; Cathy Casper, Senior VP, Administrative Services 122 BizTucson < < < Winter 2013
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Photo: BalfourWalker.com
Investors
www.BizTucson.com
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BizMILESTONE
Tucson Conquistadores
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50 Years, $25 Million By Joan Liess
In 1962, John Glenn became the first American to orbit the earth, Wilt Chamberlain scored 100 points in a single basketball game and Walter Cronkite became the face of CBS Evening News. That same year, 41 visionary businessmen and professionals in Tucson pledged to inspire local youngsters to achieve their own greatness through participation in sports. Tucson had more than doubled its population in just three years – from 107,000 in 1959 to 223,000 in 1962 – when this as-yet-to-be-named civic group was born. It was patterned after the successful Phoenix Thunderbirds, which sponsored the Phoenix Open golf tournament as its major fundraiser. Tucson’s counterpart tournament was in financial trouble, so “saving the Tucson Open was part of the discussion from the very beginning,” said Fred Boice, one of the group’s charter members, and later on its first Tucson Open tournament chairman. Corralled by developer, philanthropist and sports enthusiast Roy P. Drachman, the men hammered out the details in a series of informal meetings. “We particularly wanted to do something to help the struggling athletic programs at the University of Arizona,” recalled Tom Chandler, another charter member. The Tucson Conquistadores first official meeting was on Oct. 22, 1962, at the El Conquistador Hotel on Broadway. Drachman was elected president and
members also planned their first fundraiser – a Sports Award Banquet slated for the week of the Tucson Open early the following year. While the celebrity-rich banquet was an acclaimed success, the Conquistadores were focused on obtaining sponsorship of the 20-year old Tucson Open from the Tucson Golf Association. After struggling for 11 years to make a financial success of the Tucson Open, the TGA turned over control of the tournament to the Conquistadores in late 1965. “We just wanted to ensure the tournament stayed in Tucson. It contributed so much to tourism and our business environment – and had great potential to raise money for our youngsters,” Boice said. Conquistadores hustled to sell ticket packages and prepare what is now the Omni Tucson National Resort for the big event. Everyone was expected to contribute. “If you didn’t work, you didn’t last,” said Burr Udall, the 1966 Pro-Am chairman. He literally put his money where his mouth was. He not only helped stake the course, but bought his own tournament ticket. He recalled being told, “You’re going to wear a coat and tie, and buy a ticket. You don’t get in free.” Reversing the tournament’s history of annual losses, the Conquistadores’ first Tucson Open was immediately hailed as a boon to the city. “The tournament was so well run that the group can look continued on page 128 >>>
1. Golf great Arnold Palmer gets a warm reception. 2. Tournament Chair Al Kivel presents Billie Jean King with Conquistadores trophy helmet. 3. Dean Martin and Lee Trevino enjoy a day on the links. 4. John Denver reads with students at Tanque Verde Elementary School. 5. 2011 Tournament Committee 6. 1969 Board of Directors. Seated from left – Chuck Pettis, Carlos Touché, Ed Richter. Standing from left – Lee Goodman, Don Ahee, Russell Jones, George Wallace, Buck Markley. 7. Kevin Costner takes time out for the fans. 8. Jim Thorpe wins a second consecutive Seiko Match Play Championship, 1988. 9. President Ronald Regan thanks Conquistadores Jim Click, Jon Grove and Jim Ronstadt at Boys & Girls Clubs of Tucson clubhouse dedication. 10. Mayor Jonathan Rothschild with Michael McGrath, Brandt Hazen, Judy McDermott and Fred Boice.
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1966 Conquistadores host the Tucson Open in February, Tucson’s first sporting event to be broadcast live on national television.
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1967 Arnold Palmer plays and wins in “Arnie’s Open,” taking home a check for $14,000. 1969 Conquistador Al Kivel helps bring professional tennis to Tucson and Lee Trevino wins the Tucson Open. 1970 Lee Trevino wins his second consecutive Tucson Open title. 1972 Conquistadores sponsor the Grand Prix Tennis Tournament. Billie Jean King wins the title. 1973 Tucson Open becomes the Dean Martin Tucson Open and is televised by NBC.
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1974 Johnny Miller makes PGA TOUR history by winning the first three golf events of the year – Bing Crosby Pro-Am, Phoenix Open and Tucson Open. 1977 Tucson Open becomes Joe Garagiola Tucson Open. Conquistadores sponsor L’Eggs tennis championship at the Tucson Racquet Club, with Chris Evert defeating Martina Navratilova.
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1978 Former President Gerald Ford attends the Pro-Am as Garagiola’s partner, helping to draw the largest crowd to date to Tucson National. 1980 Conquistadores sponsor their final tennis tournament at Randolph Tennis Center. Marty Riessen wins a second helmet trophy. 1983 Conquistadores assume sponsorship of the LPGA Open at Randolph North.
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continued from page 127 1984 Corporate sponsorship begins with the Seiko Match Play Championship. Conquistadors pre-sell $1million in ticket packages. 1988 Northern Telecom sponsors tournament at TPC Starr Pass Golf Club. 1991 First $1 million tournament purse. Phil Mickelson, a junior at Arizona State University, wins his first of three Tucson Opens. 1992 The first after-tournament 19th-hole party is held at Tucson National, featuring Three Dog Night. 1994 Pro-Am celebrity host John Denver raises $40,000 for the Boys and Girls Clubs of Tucson by giving a concert. 1997 Chrysler agrees to two-year sponsorship, bumping purse to $2 million in 1998. Tournament drops two-course format, returning to Tucson National. 1998 Touchstone Energy steps in to sponsor the 1999 tournament, saving the event from possible extinction. 2003 Chrysler resumes sponsorship of the golf tournament through 2006. 2006 Final Tucson Open played at Omni Tucson National Golf Resort. 2007 Accenture Match Play Championship debuts at The Ritz-Carlton, Dove Mountain in Marana. Tiger Woods draws huge galleries. 2012 Total giving exceeds $25 million. Accenture Match Play renews its commitment through 2014. 128 BizTucson < < < Winter 2013
Lee Trevino sports the Spanish helmet following his 1969 victory.
Spanish Helmet The Tucson Conquistadores chose to recognize the winner of the Tucson Open with a Spanish helmet – a choice inspired by the Conquistadores’ logo. In 1968, George Knudson won the first trophy made in Toledo, Spain, known for its fine steel-making since the fifth century B.C. It continued to be made in Toledo until 1994, when Jim Ronstadt brought the job home to Tucson’s Caid Metal Works. The Spanish connection didn’t escape the notice of the helmet’s second recipient – Lee Trevino. When he was crowned with the trophy in 1969, he joked, “You better get a Mexican hat. I’m not a Spaniard.” As treasured by its recipients as it was, the helmet did pose a few minor problems. When Phil Mickelson won as an amateur in 1991, he cut himself while attempting to put it on his head. And in a 2002 Wall Street Journal story, the helmet was used as an example of the problems sponsors can encounter with promotional caps and visors. When placed on the winner’s head, the helmet completely obscures the cap – and thus the sponsor’s logo. Arnold Palmer was surprised with the iconic trophy for his 1967 win when he visited The First Tee of Tucson in 2005. Barring its resurrection, Kirk Triplett, winner of the 2006 Chrysler Classic of Tucson, can claim to be the last golfer to go home with the Conquistadores’ distinctive trophy. Biz
ahead on their sponsorship of the Tucson Open as a permanent thing of great benefit to the community,” wrote Arizona Daily Star columnist Abe Chanin in 1966. Chanin’s prediction proved true. These guys are good. Over the course of 50 years the Conquistadores have hosted 32 Sports Award Banquets, five professional tennis tournaments, five LPGA golf tournaments and 46 PGA TOUR golf events. Proceeds have netted $25 million for youth athletic programs. The local economy has clearly benefitted, too. “Professional golf was then and is now one of Tucson’s greatest assets,” Boice said. Charter member and 1971 tournament chairman Chuck Pettis echoed the importance of PGA TOUR golf in promoting Tucson. “We scrambled to get on TV, and stay on TV.” Surely, one of the proudest moments for the Conquistadores came on Sunday during the 2012 Accenture Match Play Championship – when NBC aired a special devoted to the Conquistadores. Reporter Jimmy Roberts spotlighted the organization’s history, detailing the Conquistadores’ contributions to Tucson’s golf legacy and to the city’s young athletes. Charter member Buck O’Rielly was interviewed, and the golden helmet once again made an appearance in videos showing past winners of the Tucson Open. Roberts sat on the NBC set with native Tucsonan and honorary Conquistador host Dan Hicks and Hall of Fame golfer Johnny Miller, who had worn the helmet four times. The NBC tribute to the Conquistadores showed the nation how a handful of men with a clear and noble mission can positively affect their community while championing a sport they love. “It’s been really pretty special. Looking at what it’s turned into today and how these guys have taken it up to the next level beyond anybody’s expectations, it’s just mind boggling what they’re doing,” said John Carter, who had been the tournament chairmen some three decades earlier. “The kids are all going to be well taken care of. This thing is going to continue to perpetuate and grow.” Biz www.BizTucson.com
It’s All About
Kids By Joan Liess
What inspires the Tucson Conquistadores to work as hard as they do on their golf tournaments and other fundraising events? Providing as many kids as possible, especially less fortunate ones, with the character-building experience of participating in sports. Over the years, the Conquistadores have made a difference in thousands of lives. Member Carl Hazlett said, “When I was tournament chairman [in 1986], we had a thank- you dinner for all of our ticket buyers at the Doubletree Hotel. My first thought was to bring all the kids that they helped send to camp, swimming, soccer, football, track, you name it. But we didn’t have enough room in that whole big ballroom to hold those kids.” It would also be impossible to detail the many organizations that the Conquistadores funded – but there are a few standouts. www.BizTucson.com
• Since 1962, the Conquistadores have given more than a half-million dollars to the Arizona Daily Star’s Sportsmen’s Fund, organized in 1947 by Abe Chanin, the newspaper’s sports editor, and Ricki Rarick, its classified advertising manager and the father of the Tucson Open. The Conquistadores are the largest single contributor to the fund, which provides scholarships to send young athletes to sports camp. • The Conquistadores also began supporting the Boys and Girls Clubs of Tucson in the 1960s, later expanding their support to branches in Nogales, Bisbee and Sierra Vista. Conquistadores’ founder Roy P. Drachman’s generous contributions were recognized by the southside clubhouse that bears his name. In 1994, the Conquistadores funded the construction of the gymnasium in the Drachmancontinued on page 130 >>> clubhouse. Winter 2013 > > > BizTucson 129
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• Another charitable tradition that began in the 1960s was supporting local YMCA projects. Member Bill Breck donated $10,000 to the Conquistadores in 1979 with the stipulation that it would be used to purchase a passenger van for the organization. In addition, since 1996 the Northwest YMCA received $100,000, the Ott Family YMCA received $300,000 and Triangle Y Camp received $100,000 – all directed towards construction of new gyms.
• The Conquistadores’ involvement
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with the Challenger Division of Little League Baseball – including help with the construction of the Field of Dreams complex in 2001 – also was particularly rewarding. Bill Fields, the father of a special-needs young adult and an assistant director for the Challenger Division, said baseball is effective training for other parts of life. “The league also provides a strong social component for the kids and their parents.” In 2008, when a Tucson Challenger Little League team was invited to participate in the division’s inaugural exhibition game in Williamsport, Penn., the Conquistadores helped raise the $30,000 needed for transportation. “The fans at the games even asked our players for autographs,” Fields said. “It was a special experience for all of us.”
• But the culmination – as well as a
natural outgrowth – of the Conquistadores’ dedication to golf and youth athletics came in 2006, when the Conquistadores established a chapter of the World Golf Foundation’s The First Tee program at Trini Alvarez El Rio Golf Course. The program is designed to create affordable and accessible facilities for young people who have never had access to golf and its positive values. It started with a $2.9 million renovation of El Rio financed by a partnership of the PGA TOUR, the City of Tucson and the Conquistadores. Tucson golf course architect Ken Kavanaugh and PGA TOUR Design Services helped make the facility more accessible for youth play by adding junior tees and incorporating a three-hole, par-3 course into the driving range.
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• In 2010, the Conquistadores dedicat-
ed The First Tee of Tucson Learning Center. Member Tom Chestnut of Chestnut Construction and the company’s subcontractors helped make the project affordable by absorbing much of the building expense, while other members donated office furniture and other necessities. Creating the Learning Center “was a huge accomplishment for the 1,500 kids in our program,” said Troy Little, who was at the helm as president during this period. In 2011, satellite programs were established at DavisMonthan Air Force Base and Rolling Hills Golf Club in Tucson, at The Country Club of Green Valley and at Fort Huachuca in Sierra Vista.
Partnership with other organizations dedicated to youth athletic programs is ongoing. Last year, the Conquistadores pledged $50,000 to the 40,000-square-foot Southern Arizona Community Sports Center now under construction at a Pima County park near River Road and La Cholla Boulevard. The Tucson Conquistador Foundation also teamed with the Christina-Taylor Green Memorial Foundation to create the Birdies & Butterflies Celebrity-Am and Gala in November. The fundraiser was supported by high-profile athletes, corporate sponsors and hundreds of individuals. Brandt Hazen, president of the Conquistadores, acknowledged the group has faced more requests for funding in tough economic times. Proceeds from World Golf Championships Accenture Match Play Championship hospitality and ticket packages generate most of the funds to fill these requests. “Our community is really stepping up again this year,” said Hazen. “We are so proud of our members, and the businesses and people in Southern Arizona.”
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1. Boys & Girls Clubs of Tucson members, 2011 2. Ed Richter and Larry Gibbons present Abe Chanin with a check for the Arizona Daily Star Sportsmen’s Fund. 3. Former Gov. Janet Napolitano with The First Tee of Tucson members, 2007.
Accenture Match Play’s Marvelous Mayhem PHOTO: CHRIS MOONEY
By Steve Rivera The pros were within touching distance – and will be again. So close the sniff test could’ve been applied at the golf club at The Ritz-Carlton, Dove Mountain. In fact, this “follow the leader” closeness was one of Gerald Goodman’s favorite moments at one of golf ’s – heck, the world’s – premier and greatest sporting events. “People would kneel down and touch the fairway grass and you could tell they had never been part of a professional setting like that,”
said Goodman, executive director of the World Golf Championships – Accenture Match Play Championship. “It’s a feeling like someone gets when you walk on to a football stadium and you’d touch the grass. “That moment brought a smile to my face and probably (a moment) that we all take for granted.” Not if you cherish memories and moments. The Accenture Match Play Championship is wafting with countless snapshot moments and hoping to have more in 2013. Its first
foray into its “follow the leader” approach for the fans was well played. “It was a big success. It’s the first time in a long time we’ve let down the ropes with the final group to follow behind the leader,” said Goodman. “We had a 49-percent increase in attendance that day. All had a great time. And we attribute that to follow the leaders.” It was so successful, officials will bring down the ropes again, essentially raising the roof on one of Mother Nature’s great golf courses. continued on page 132 >>>
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And it happens to be in Marana. It
Fans at The Ritz-Carlton Golf Club. (Photo by Stan Badz/PGA TOUR) The Ritz-Carlton Golf Club, eigth green. (Photo by Stan Badz/PGA TOUR).
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had a “Ryder Cup feel,” said Goodman, who hopes it becomes a “Sunday tradition.” Accenture’s “Follow the Leaders” approach gave the fans a unique chance to enjoy the final day, walking the fairways and viewing the greens from a player’s perspective. And what better way to gain some perspective than from the top players in the world in one of the more prestigious tournaments in the world. From Tiger Woods to Luke Donald to Lee Westwood to Accenture defending champ Hunter Mahan, who stunned everyone last year to capture the title against 63 of the world’s best golfers. PGA player of the year Rory McIllory is expected to be part of it as well. From up-and-comers to the well-established, it’s a haven for mayhem. What will happen this year is anyone’s guess. Seemingly it’s always a player who started earlier in the week with no chance to emerge with a big chance. The last four champions have – Geoff Ogilvy (2009), Ian Poulter (2010), Luke Donald (2011) and Mahan last year. No Tiger Woods in the bunch. Of course, it’s not like no one wants to spot a Tiger in the crowd or on the green. “He is a factor,” said Goodman. “He’s played a lot in match play and he’s won the event (before it moved to Arizona). To that, our viewership is up and our attendance is up. Yes, Tiger is a factor in attendance (but) it doesn’t seem to be affecting our viewership and our attendance.” The PGA is proud to say that attendance – although it didn’t have specific numbers – was up 19 percent overall from 2011 to 2012, with that 49-percent increase in attendance on Sunday’s final day. A total of 27.9 million viewers tuned in to Golf Channel and/or NBC’s coverage of the Accenture Match Play Championship for the week. Popular indeed. “The Tiger factor certainly lends to increase interest or attendance,” said Laura Hill, PGA’s communications director. “But it has also allowed for our younger and up-and-coming stars to really make a name for themselves. It’s not like it used to be when the field was here and no one was watching them. That’s not the case anymore.” Southern Arizona golf fans and even
those just curious with the game and the fun have enjoyed the scenery and the ambiance of the scenic views and stunning weather. Clearly, the Accenture Match Play Championships transcend golf and embrace the community and all it features. “We have a lot of fans who are not golfers,” Goodman said. “It’s a highintegrity sport and a family sport. It’s a sport where you want your children to be around.” Another feature is the PGA allowing cell phones on the premises. Once again, there will be designated areas for usage. “Our fans did a remarkable job of keeping their phones on silent and respecting the players,” Goodman said. “The PGA TOUR wants our fans to have the best experience when attending an event. The Southern Arizona golf fan is the best fan in the world.” Goodman, now in year two of his position, is biased, but he’s well aware of golf ’s importance to Southern Arizona. “We’re on TV for 56 hours and you can be anywhere in the world and turn on the TV and see the saguaro cacti and know where the event is coming from.” It’ll once again continue from the scenic and breath-taking Marana area. In late 2012, Escalante Golf, announced it had acquired The Ritz-Carlton Golf Club, Dove Mountain. The club will be renamed The Golf Club at Dove Mountain and will continue its relationship with the Ritz-Carlton hotel, the Residences and the PGA Tour. “We are honored to be a part of the exceptional Dove Mountain community and to be stewards of this world-class club,” says David McDonald, President of Escalante Golf. “We will continue to provide our members and guests the same high level of personalized service and attention to detail that is the standard at Dove Mountain.” Hill said the purchase of the golf course will have no impact on the tournament itself, “although the PGA, on behalf of the International Federation of PGA, is working closely with the new ownership group to ensure course conditioning – which has always been excellent – continues to remain at that high standard.”
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10 Pros to Watch
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1. Keegan Bradley – This young American has gone from relatively unknown to one of the most recognizable faces in the game in less than two years. A maiden PGA TOUR win at the 2011 HP Byron Nelson Championship led to a breakthrough at the PGA Championship later that year. In 2012, Bradley took home his first World Golf Championships event at the Bridgestone Invitational and was one of the top players on the U.S. Ryder Cup squad. 2. Luke Donald – The Golf Club at Dove Mountain requires the ability to get the ball up and down, one of Luke Donald’s great strengths. A player who seemingly makes every putt he looks at, despite failing to make it out of the first round for the first time in eight years at last year’s event, the 2010 champion should still be considered a favorite. 3. Hunter Mahan – Mahan played as well, if not better, than anyone to start the 2012 season, with victories at the World Golf Championships – Accenture Match Play Championship and the Shell Houston Open, getting him inside the top five in the FedExCup standings from April through the first week of August. Mahan blazed through the competition at Dove Mountain last year, reaching the 18th hole in only one of his six matches. 4. Graeme McDowell – For some reason Graeme McDowell’s superb performances in Ryder Cups and other large scale events have not carried over into success at the Accenture Match Play Championship. But despite a 3-6 record, don’t be surprised if McDowell, and not McIlroy, is the first player from Northern Ireland to win this event.
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5. Rory McIlroy – Hard to imagine a better season than Rory McIlroy’s year in 2012. With four wins on the PGA TOUR, including his second-career major championship victory at the PGA Championship, McIlroy won the PGA TOUR Player of the Year award, finished No. 1 in the Official World Golf Ranking, on the PGA TOUR money list and the European Tour’s Race to Dubai, while finishing second in the FedExCup. McIlroy also nearly won the 2012 Accenture Match Play Championship, finishing second to Hunter Mahan.
6. Ian Poulter – While certainly one of the well-known players in golf over the last several years, Ian Poulter continues to take his game to new levels when teeing it up in match-play formats. Winner of the 2010 Accenture Match Play Championship, the Englishman carried the European Tour Ryder Cup team to one of the most dramatic come-from-behind victories the sport has ever seen. Poulter relishes the opportunity to square off head-to-head with the world’s best and the 2013 Accenture Match Play Championship will give him that chance. 7. Justin Rose – Probably the most overlooked player in the top 10 in the world, Justin Rose was a world beater in 2012. With a crucial putt at the Ryder Cup, a victory at the World Golf Championship – Cadillac Championship and top-10 finishes at high-level events like the Master, the PGA Championship, the Bridgestone Invitational, the BMW PGA Championship and the DP World Tour Championship, Rose has been one of the most consistent players in the world. 8. Brandt Snedeker – It was a career season for Snedeker in 2012, with two victories including his win at the TOUR Championship by Coca-Cola which made him the FedExCup champion. Snedeker will look to improve on last year’s results, when he reached the third round.
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9. Bubba Watson – Don’t let the pink driver fool you. “Bubba Golf” fits well at the Golf Club at Dove Mountain. Watson, who won his first career major championship at the Masters in 2012, has won five matches in two years at the Accenture Match Play Championship, reaching the final four in 2011. 10. Tiger Woods – Anytime Tiger tees it up, he has a chance to win. Woods has owned the World Golf Championships with 16 victories in World Golf Championships events including three at Accenture Match Play Championship. His success hasn’t carried over as of late, however, having not advanced beyond the second round since 2008.
PHOTOS COURTESY OF PGA TOUR
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The Southern Arizona Community Sports Center is scheduled to open in July 2013.
From left – Former University of Arizona Basketball Coach Lute Olson, Tucson Conquistadores President Brandt Hazen and Don Tringali, Chairman and President of Southern Arizona Community Sports
Youth Sports Center
By Dan Sorenson
On paper, the Southern Arizona Community Sports Center at Curtis Park may be just 40,000 square feet of indoor basketball and volleyball courts. Yet Don Tringali believes it will do everything from helping keep kids off drugs and boosting the local economy to leading the way to a new kind of public-private sector cooperation. It’s already done the latter. Tringali, a retired 54-year-old entertainment business attorney from Los Angeles, is the chairman and president of Southern Arizona Community Sports, a nonprofit with the primary purpose of making affordable sports facilities available for local youth. The $6 million physical manifestation of that mission is being built on county property on the northwest corner of La Cholla Boulevard and Curtis Road, bounded on the north by the Rillito River. It’s scheduled to open in July 2013 with five indoor basketball courts, eight indoor volleyball courts, spectator space, a snack bar and lobby. The October groundbreaking ceremony – with a lineup of smiling businessmen, sports celebrities, neighborhood leaders and politicians armed with shovels posing atop a dirt pile – could have been for almost any project. But this one’s uncommon. While the county owns the dirt and will own the building, it’s being paid for by the TMC 134 BizTucson < < < Winter 2013
Foundation and a list of other private and nonprofit organizations and individual donors. “One of the main missions is to provide safe, affordable indoor space for youth sports programs,” Tringali said at the groundbreaking. “We know that kids who are involved in youth sports at an earlier age have much better health results, they are more likely to graduate high school, they are less likely to engage in drug or alcohol abuse.” The private sector’s part of the job won’t end with construction, according to Tringali. He said the $300,000 to $400,000 SACS will need annually to keep the facility running under a 10year contract with the county will come from user fees, TMC and, for facilities maintenance and utilities, Pima County. The 10 full-time-equivalent staffers he anticipates needing to run the facility will be SACS employees, not county. Some of the operating cost savings will come from having the programming provided by the organizations renting the facilities, which he said will be charged about one-fifth of the fee at a privately funded sports center in another community. Besides youth sports leagues, Tringali said the indoor sports center might be of use to charter, private “and even public schools that may need extra space.” Additionally, Tringali said the
facility could be used in “off hours” by adult and corporate groups Pima County Supervisor Sharon Bronson and Julia Strange, representing lead benefactor TMC, emphasized the health benefits provided to the community. “One of the things Pima County is focusing on is obesity,” said Bronson. The county “has been taking active steps by providing resources and opportunities that can positively influence the choices residents make to encourage healthier lifestyles. It’s tough to play basketball outside when it’s 109 degrees.” This project could yield benefits beyond providing playing space for young athletes and promoting health. “There is an economic aspect to all of this,” Tringali said. “Pima County is doing a study of sporting facilities available to market the area. This will be another arrow in their quiver.” He said youth sporting tournaments associated with Sporting Chance Youth Sports brought into Tucson roughly $20 million since its founding in 1993. And there have been queries from national groups about using the new facility for table tennis and gymnastic competitions. “Right now Phoenix hosts most of (the state’s) amateur sporting events, basketball, volleyball, gymnastics,” Tringali said. www.BizTucson.com
Tucson Medical Center VP of Community Benefit Julia Strange addresses the crowd at the groundbreaking ceremony.
Opens July 2013 Former University of Arizona men’s basketball coach Lute Olson said, “Believe me there’s nothing more needed in this community than an indoor facility where kids can get inside in a safe environment and play basketball, volleyball and other sports. We need something like this very, very badly. It’s great news that TMC is stepping up big time. Thank you very much for that.” He wrapped up his comments and the groundbreaking ceremony with a heartfelt endorsement of the project and a pledge to be there for SACS if he could be of further help. “I can assure you that anything that I can do to help as you go on from here, you can have my phone number, my e-mail. And I’ll expect to hear from you on a regular basis,” Olson said. The legendary Wildcat coach said his relationship with Tringali’s efforts dates back to when Tringali walked into Olson’s McKale office as the head of SCYB in the 1990s and “said he wants to make Tucson the center of youth basketball in this country.” Tringali described Sporting Chance as a promoter of youth sporting events, putting on tournaments and in other way fostering youth sports in Tucson. He said it pointed up the need for more indoor facilities, which led to the formation of SACS. The Olson connection yielded other www.BizTucson.com
benefits in terms of celebrity and business power. Former Wildcats Matt Muehlebach, now a practicing Tucson attorney, and Corey Williams of Crest Insurance, are involved and were at the groundbreaking. Tringali said other Olson and Wildcat alumni, particularly Steve Kerr, also have been of help. “Coach knew from the outset that this was not about finding the next Sean Elliott,” Tringali said of Olson’s longstanding commitment to youth basketball, both the SACS project at Curtis Park, and his earlier association with SACS’ predecessor, Sporting Chance. Tringali and SACS are still seeking donors for the $6 million project – offering naming rights for the entire facility as well as the individual courts,
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This whole model was designed to minimize taxpayers’ cost, participant costs, user fees – and do it as efficiently as possible.
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– Don Tringali, Chairman & President
Southern Arizona Community Sports
plaza, hall of fame, landscaping and snack bar. But the lineup of donors and contributing organizations and businesses is already extensive. The TMC Foundation, the Tucson Conquistadores and SACS’ founding organization, Sporting Chance top the list. Others include a mix of private and public groups including the ChristinaTaylor Green Memorial Foundation, the Tohono O’odham Nation, Tucson Rental Homes, Tucson Orthopaedic Institute, Southwest Gas, Odyssey Luxe Travel, Nova Home Loans, MacBan Law Offices, Ludwig, Klewer & Co., Lambent Technologies, Iridius Capital, Fiesta Bowl Charities, April & Jon Fenton, Farhang & Medcoff, Crest Insurance Group, Cox Communications and BFL Construction. “This is a great example of how the public and private come together,” Tringali said in a follow-up interview. “It’s as grassroots as you can get. This isn’t a YMCA or an established national nonprofit. This is a grassroots thing that was started here in Tucson, grew here in Tucson and ends up with wanting to do this great thing for Tucson. It will be privately operated. That’s the beauty. This whole model was designed to minimize taxpayers’ cost, participant costs, user fees – and do it as efficiently as possible.”
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BizLEADERSHIP Suzanne McFarlin Executive Director Greater Tucson Leadership
Making an Impact It’s common these days for people to wear many hats in their jobs. Even so, Suzanne McFarlin, executive director of the nonprofit Greater Tucson Leadership, wears more hats than most folks. A lot more. In addition to her GTL duties, McFarlin is the owner of Changing Tides Coaching & Consulting, a firm providing executive and leadership training to a variety of firms, including Raytheon Missile Systems, the University of Arizona College of Medicine, Tucson Unified School District and the University of Phoenix. She’s also actively involved in a number of local nonprofits. 136 BizTucson < < < Winter 2013
McFarlin earned a bachelor’s degree in communication from the University of Michigan, then embarked on a marketing career for a video company that took her from Pennsylvania to Los Angeles. She moved to Tucson in 1990. “I raised two stepsons and a daughter and a son,” she said of that time. As the years went by, McFarlin realized she was ready for the next step in her life. “I went back and evaluated things. I knew my real love was human and organizational transformation.” continued on page 137 >>>
PHOTO: CHRIS MOONEY
By Romi Carrell Wittman
continued from page 136 Like most things she does, McFarlin jumped in with both feet. She studied coaching and became a certified coach with Martha Beck, best-selling author of Finding Your Own North Star and monthly columnist for O Magazine. She also received the certified International Coach Federation Associate credential from the International Coach Academy. McFarlin learned about the GTL program and decided to give it a shot. “I was looking for a way to get more involved in the community and step up my leadership,” she said. “Going through GTL reinforced that I have a voice just like everyone else and I can make an impact.” She graduated with the GTL Class of 2005. Her experience with GTL led McFarlin to the Southern Arizona Leadership Council, which hired her to put on a regional town hall. That led her to the Community Foundation for Southern Arizona, where she built and ran a literacy coalition. Throughout, she maintained a strong relationship with GTL – serving on the governing board and eventually assuming the role of president. This experience gave her a unique perspective on the many challenges and opportunities facing the small nonprofit. She said the main issue was figuring out a way to sustain the small, but tenacious organization well into the future. “I knew it would be ideal to partner with an organization that shared our mission. It just so happened that Bill Holmes (then with the Tucson Metro Chamber) joined our board that year.” McFarlin transitioned off the GTL board and became GTL executive director after former executive director Kim Bourn accepted a position with the Critical Path Institute. The first order of business was establishing a formal relationship with the chamber, a task McFarlin ran with. Rob Stenson, GM at Goodmans Interior Structures and a member of the GTL board, said McFarlin played a critical role in structuring the partnership agreement between GTL and the chamber. “Suzanne [was] instrumental with the alignment of the Tucson Metro Chamber and Greater Tucson Leadership,” he said. “Suzanne’s organizational skills, passion and work ethic have made the transition highly successful.” McFarlin admits that the process hasn’t always been easy. Taking on the job was really a labor of love and her dedication to the organization is evident. Mike Varney, CEO of the chamber, said, “She’s a visionary. She’s articulate. She’s a leader. She brings the complete package and, as a result, the GTL product is first rate. I think the world of Suzanne.” McFarlin said she simply saw a job that needed to be done and did it. “I had a great love for the organization and was willing to do what was necessary to make it work. It’s taken a lot of perseverance – but I’m really excited to see the direction we’re going.”
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PHOTO: CHRIS MOONEY
BizLEADERSHIP
Greater Tucson Leadership Class of 2012 Front row from left – Stephanie Bankemper, Cox Communications; Nicola Hartmann, San Miguel High School; Allyson Solomon, Community Volunteer; Tracy Koslowski, Drexel Heights Fire Department; Karen Mattull, BeachFleischman, and Beth Bank, Merrill Lynch. Second row from left – Steven Wagner, BeachFleischman; Vanessa Bechtol, Santa Cruz Valley Heritage Alliance; Michelle Morales and Lesah Sesma-Gay, both of Casino del Sol Resort, and Tom Sundeen, B/E Aerospace. Third row from left – Caroline Nelson, Northern Trust Company; Autumn Rentmeester, Junior Achievement; Jennifer Turner, Easter Seals Blake Foundation; Rachel Davidson, Vantage West Credit Union, and Katherine Hammel, Katherine Hammell, DMD. Fourth row from left – Keith Crawley, YMCA Triangle Y Camp; Connie Rank-Smith, Vantage West Credit Union, Jessa Turner, UA Office of University Research Parks; Colleen Brinkley, Girl Scouts, and Delle McCormick, First Christian Church. Fifth row from left – Karen Lutrick, Bourn Companies; Bryn Tierney, Vantage West Credit Union; Mike Wall, Total Transit; Kerry Roberts, Desert Leaf; Megan Escobar, Ventura Pacific Development; Korey Riggs, KR Leadership Development & Consulting, and Shipherd Reed, UA College of Science. Not pictured – Joe Black, Crest Insurance Group; Jordan Davis, AAA Landscaping; Marcus Diaz, Casino Del Sol; Guillermo Figueroa, CenturyLink; Leon Lin, Sundt; Nathan McCann; Altar Valley School District, and Tavi Meketon Hibner, R&A CPAs.
Greater Tucson Leadership on the Move By Romi Carrell Wittman John F. Kennedy said, “Change is the law of life and those who look only to the past or present are certain to miss the future.” Indeed, one of the hallmarks of a great leader is the ability to not only manage change, but to flourish within it. And Greater Tucson Leadership knows a thing or two about change. Founded in 1980, the nonprofit GTL is a non-partisan leadership organization dedicated to providing leadership education, community development 138 BizTucson < < < Winter 2013
and civic engagement for the Tucson community. It’s the only formal, local civic leadership educational program in Southern Arizona. Earlier this year, GTL became a partner program of the Tucson Metro Chamber and its offices are now at the chamber’s downtown facility. GTL actually began as a program within the chamber and was originally called Leadership Tucson. In 1986, Leadership Tucson broke off and formed GTL as a separate nonprofit
organization. “This is really going back home,” Suzanne McFarlin, executive director of GTL, said of the move. “When I came on board in 2012, I thought GTL needed to look at sustainability measures. I thought it would be ideal to partner with an organization that shared our mission.” Many conversations between the GTL board and the chamber followed. The partnership agreement was signed early this year. www.BizTucson.com
McFarlin said this change is a winwin for both organizations. It provides GTL a platform for growth and expansion while giving the chamber a means of leveraging both organizations to build a stronger presence in the community. Chamber CEO Mike Varney agreed that it’s a great alliance for both organizations. “We’re thrilled to re-engage with GTL on a formal basis,” he said. “I look at the partnership as one of the rare equations where 1+1=3. We’re able to deliver awareness of GTL to many, many more people and that, of course, drives participation in the GTL classes. Tucson benefits because GTL helps to prepare and educate future leaders in the community. It’s just a romance that will forever be on a honeymoon.” He said the entire community will benefit. One of the first projects GTL took on was the Man, Woman and Founder of the Year awards, a tradition established in 1952, run by the chamber since 1983, and before that by the Tucson Advertising Club. GTL offers a leadership program unlike any other in Southern Arizona. Each spring, candidates from nonprofit, for-profit, public and private business apply to GTL. Candidates are reviewed and selected over the summer. In the fall, classes begin meeting and continue meeting monthly through the following spring. The monthly classes, called Issue Days, focus on particular aspects of our community – such as the border, education and healthcare. GTL alumni are very vocal about the benefits of the program. Susie Dupnik, executive director for 88-Crime and GTL class of 2007, said, “I made so many friends and professional contacts that help me in what I do. I also have a greater understanding of problems affecting our community and what I can do about it.” “Although every class says it, we had an amazing and fun group of people in our class,” added Sheila Storm, communications director for the Pima Association of Governments and also GTL class of 2007. “I know I can seek information or inspiration from my GTL friends and they will respond.”
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BizHONORS
Tucson Man of the Year
Rick Myers By Romi Carrell Wittman
When most people think of retirement, visions of fishing trips and golf games are what spring to mind. But not Rick Myers. The 2012 Greater Tucson Leadership Man of the Year is not like most people. Ten years ago, Myers retired from IBM after 25 years. His career with IBM took him to cities across the country, ultimately landing him in Tucson, where he served as VP and GM of the Tucson facility. Since leaving IBM, Myers threw himself wholeheartedly into a number of organizations and projects. He currently serves as chair of the Arizona Board of Regents, which oversees Arizona’s three public universities. Lisa Romero, director of marketing and communications for the BIO5 Institute at the University of Arizona, nominated Myers for the award. “When I saw the GTL nomination form, I knew that Rick embodied the GTL mission. He leads, he inspires and connects people in an amazing way,” Romero said. “I couldn’t believe he hadn’t been chosen before.” Ron Shoopman, president of Southern Arizona Leadership Council, echoed Romero’s thoughts about Myers and his contributions to Southern Arizona and beyond. “Few people would sacrifice a prestigious private-sector position in order to commit their full attention to an effort that will benefit the people of our state – yet Rick Myers made that decision,” Shoopman said. Pima County Supervisor Ann Day contacted Myers asking if he would serve on a group tasked with enhancing the county procurement code. Myers worked on it for six months – and found that he really enjoyed it. “I was able and willing to get engaged in the community,” he said. By working with Shoopman and SALC, Myers connected with other CEOs and became aware of a number of issues facing the region. That led to his involvement with a dizzying array of community projects and organizations – from the Regional Transportation Authority to Science Foundation Arizona and the Critical Path Institute, where he now serves on the board. Myers even taught a graduate course on management and technology. “The class explored how companies are competitive today with technology,” he said of the class he taught for six years. “It was a great experience to work with hundreds and hundreds of business and engineering graduate students.” All of this culminated in a call from Gov. Jan Brewer’s office. “Her assistant called and said the governor wanted to www.BizTucson.com
have lunch with me,” Myers said. He made the drive to Phoenix and met with the governor for about an hour and a half. When Myers returned home, he got another phone call from her office. “They told me ‘The governor has decided you’re the person she’s going to appoint to the board of regents.’” Brewer appointed Myers to an eight-year term in 2010, and, last year, he was appointed chair. Myers believes that everything he’s done has led him to his role as a regent. “The insights that I have… give me a perspective to make a difference.” He’s passionate about his work as a regent and its goal to improve Arizona’s future. “The regents have worked hard to really connect our three great universities to resources,” he said. “How can the universities help drive a better future for Arizona? How can they increase the number of adults in Arizona that have the education needed for higher-paying jobs? How can we work harder to take the knowledge that we have in the universities and translate that into new companies?” Ann Weaver Hart, president of the University of Arizona, said Myers exemplifies civic leadership. “Rick’s service to the State of Arizona, the City of Tucson and to higher education could not be more important to our success,” she said. “Not only does he give of his time and effort, but he works industriously as a mentor to emerging and developing leaders in our region and state.” Lisa Romero added, “This man would work 24 hours a day to ensure a better future for Arizonans. I know the respect people have for Rick, and I know the respect that Rick affords everyone he meets. He has truly changed the canvas of Southern Arizona through his vision and leadership.” Despite all of his achievements, Myers is a bit bashful about accepting the accolade of Man of the Year. “I feel very humble about it because anything I’ve been able to do has been because of the people I work with,” he said. “I’ve had the honor of being involved in a lot of activities and seeing good people come together to address challenges in the community.” Reflecting on his career and post-retirement life, Myers said it’s hard to single out any one thing that he’s most proud of. “I’ve worked in so many different areas. I’m most proud of the journey – and of working with excellent people to accomplish great things.”
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BizHONORS
Tucson Woman of the Year
Colleen Niccum By Romi Carrell Wittman
Colleen Niccum knew something was up. “I was trying to get to a meeting,” Niccum said with a laugh. “But they kept telling me I had to wait for this mystery appointment.” That mystery appointment was a visit from Suzanne McFarlin, executive director of Greater Tucson Leadership, and Jean Gage, president of the GTL governing board. They came to inform Niccum she was selected as GTL’s 2012 Woman of the Year. Niccum was surprised – and deeply honored. “You can’t be anything but humbled to be selected for something like this,” she said. “It’s such a renowned group of people. It’s not something you expect.” Jacquelyn Jackson is the executive director of Tucson Values Teachers, a nonprofit Niccum helped establish and one in which she remains active. Jackson nominated Niccum for the award. “I worked with Colleen for about four years,” Jackson said. “I witnessed her wonderful leadership qualities and her deep commitment to education. She’s involved with so many different organizations and she’s deeply respected. It was a no brainer to nominate her.” Niccum says the award is an opportunity to shine a spotlight on education in our community – something about which she is very passionate. “Having two kids in Tucson schools has been a motivator for me to get more involved in education,” she said. She and her husband Jake are parents of Jacob, a senior, and Olivia, a freshman, at Tanque Verde High School. “My children have had good experiences and done well – and I want all children to have those same opportunities,” she said. “As I got involved, I started to see the needs of children who live in poverty, the challenges teachers face, the lack of resources. That inspired me to get more involved.” Niccum has worked at Raytheon Missile Systems for 30 years. Since 2008, she’s served as director of community and government relations. “We need technologists, scientists and engineers to work at Raytheon,” she said, one reason the company is so committed to science, technology, engineering and math education. “We hope our programs and our employees who volunteer in classrooms can help inspire the next generation.” Leveraging her involvement with the Southern Arizona Leadership Council, Niccum partnered with local business leaders in 2008 to create Tucson Values Teachers. The nonprofit’s mission is to help recruit, retain and support teachers in local classrooms. www.BizTucson.com
“Teachers have a big influence on student performance,” she said. “We want to support and reward teachers so that we have the best, so that Tucson becomes a magnet for the best teachers in the country.” Niccum, via TVT, partnered with the University of Arizona College of Education and Science Foundation Arizona to create the Teacher Industry Internship program. Each summer, local businesses provide summer jobs for middle and high school math and science teachers. This gives teachers a front-row seat in industry – so they can see exactly what skills and abilities are needed in the workplace. The teachers also are enrolled in a master’s degree or professional development program at the UA. “Both the teachers and the businesses gain much from the experience,” Niccum said. “One teacher told me the program gave her ‘street cred’ because she could say she’d worked as an engineer. That meant a lot to her students.” To date, 75 science and math teachers have worked in industry jobs. This successful model has spread to other communities, including Chandler and Phoenix. Two years ago, Niccum was appointed by Gov. Jan Brewer to the Arizona Ready Education Council a statewide group whose job is to oversee education reforms.” “It’s about ensuring kids can compete nationally and globally, as well as helping people understand the implication of higher standards.” Since Arizona ranks near the bottom of education funding, the group has its work cut out. “We need to work with the legislature, Department of Education and other business and education groups to identify needed funding. We can’t implement reform without it.” Niccum has worked with the Arizona Chamber and Arizona Commerce Authority to highlight the economic impact of the defense industry – as well as efforts to make Arizona a magnet for high-tech companies. She played a leading role in raising issues that led to the Aerospace and Defense Corridor plan, which provides transportation and infrastructure improvements to support Raytheon and other businesses on the southeast side. Niccum is also involved with the Educational Enrichment Foundation, Tucson Metro Chamber, Tucson Regional Economic Opportunities, the statewide Expect More Arizona organization and the advisory board for the UA College of Education. While pleased with her accomplishments, Niccum is also quick to point out that no one achieves great things by themselves. “This community is really about partnerships and collaborations,” she said. “Nobody does anything alone.” Biz Winter 2013 > > > BizTucson 143
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BizHONORS
Tucson Founders Award
Tom Chandler By Romi Carrell Wittman
A lot of thoughts ran through retired Tucson attorney Tom Chandler’s head when Suzanne McFarlin knocked on his door recently. She’s the executive director of Greater Tucson Leadership and told him he was 2012 GTL’s Founder of the Year Award recipient. “I was humbled that I would get such an award,” he said. “I certainly wouldn’t have nominated myself for it – but it was gratifying.” The award caps a lifetime of commitment to the Tucson community. In his 70-plus years in Tucson, Chandler has been a steadfast and dedicated advocate for the poor, women and minorities – contributing his considerable talents, his time and resources. Dee Dee Samet, an attorney and former state bar president, nominated him for the award. “Tom is a dedicated lawyer and citizen,” she said. “In my opinion Tucson is a better place because of Tom’s continuing efforts on our behalf. I felt he needed to be recognized for that.” Chandler earned a bachelor’s of arts degree from the University of Arizona in 1942. He went on to earn a law degree from the UA in 1946, graduating first in his class. He cofounded the law firm of Chandler, Tullar, Udall & Redhair – now known as the Udall Law Firm, the oldest in Tucson. Of his legendary career, Chandler said, “I’m not ready to say that anything I did was of such significance that it ought to be discussed in detail – but the one thing I did that meant a great deal to me was the Groundwater Commission. It was something Arizona badly needed. I don’t take credit for it, but I participated in it and it was successful.” The Groundwater Commission was formed by former Arizona governor Bruce Babbitt – before he was governor. Then President Carter “was on a minor rampage to shut down water projects in the west,” Chandler said. “One of them was the Central Arizona Project.” The CAP was originally conceived as a means of getting water to farms and agriculture. President Carter viewed this as wasteful, Chandler said, and wanted to shut the program down. That’s when Babbitt got involved, forming a committee and shepherding it along until it came up with a viable groundwater law. Chandler took an active role on that committee and helped draft a groundwater law that provided water not only to farms and agriculture, but also to urban areas. The law was passed by the Arizona legislature, meaning the CAP could move forward. “I really enjoyed that,” Chandler said of the time he devoted to the effort. www.BizTucson.com
He also spent considerable time mentoring local lawyers and judges, and served on the appellate court commission, where he and a group of others were responsible for screening applicants for appellate court jobs. “I thought the collective effort of the selection commission resulted in sending some good, solid names to the governors. And that resulted in a lot of quality people being appointed to the appellate courts,” he said. “I enjoyed that.” Chandler, along with other members of the Pima County Bar, formed the Legal Aid Society. These attorneys provided legal services to low- and moderate-income people – folks who otherwise would not have adequate access to legal resources and representation. Today, the organization is known as Southern Arizona Legal Aid. In 1999, to recognize his outstanding achievements, the UA College of Law created the S. Thomas Chandler Public Service Award, which provides exit scholarships to students pursuing careers in public service or serving the public interest. Chandler also has been active in community philanthropy. He is one of the founders of the Tucson Conquistadors, which over decades raised more than $25 million for Tucson’s youth. In addition, Chandler co-founded the Arizona Adopt-AClassroom Project – which has provided resources to more than 2,000 teachers since its formation in 2003. He also served on the Arizona Board of Regents from 1976 through 1984, guiding Arizona’s three public universities through a very difficult financial period and helping to shape the education each provided. U.S. Magistrate Judge Bruce McDonald said at his recent investiture that he met Chandler when he was 16 and working as a janitor at one of Chandler’s restaurants. Chandler would talk with the boy about life and issues. “Tom said something to me that I will never forget,” McDonald said. “Tom said that the measure of a person’s life is not how much money you make or what professional accolades you receive. Tom said he thought of life as a path one walks down – and as you walk you move all the rocks and boulders in the path to the side, so those who come behind you will have a clearer and easier walk.” McDonald said Chandler was instrumental in his decision to become an attorney. “One of the greatest gifts of my life was the opportunity to have Tom as an employer, a law partner and a friend,” he said. “Tom, thank you for clearing those rocks and boulders for me and for all you have done for me.” Despite his many achievements, Chandler shrugs off praise. “I’m grateful – even though I doubt I deserve an award of any kind,” he said, while acknowledging that “when your community takes note of you and what you’ve done, it means a great deal.” Biz Winter 2013 > > > BizTucson 145
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Darlene and Dana Pulsifer Co-Founders, Laser Art Imaging
Awards Etched in Stone
PHOTO: KRIS HANNING
BizTECHNOLOGY
By Ethan Orr Awards today go well beyond the traditional brass-on-wood plaque. They can be more innovative, leading presenters and recipients alike to appreciate the thought and care that went into the making of the prize itself. Yet finding that just-right award on a budget, as every event organizer knows, is a challenge. Dana and Darlene Pulsifer developed an inventive and affordable solution to this dilemma – and in the process opened a new market with almost endless possibilities. Their new business – Laser Art Imaging – uses the latest technology to engrave, or print, images onto hard surfaces. With laser engraving almost anything that can be imagined can be realized, Dana said. The company engrave images – including artwork, photographs and logos – onto almost any surface. Materials range from wood, glass or metal to leather and a variety stones, including agate, granite and marble. Longtime Tucsonan Dana is founder and president of Laser Art Imaging. He’s also owned and operated City Carpet since 1993. An accountant by trade, Darlene owns her own financial consulting business. Now they also are the design team for Laser Art Imaging. “I wear many hats,” Darlene said. “I do a lot of the hand painting and a lot of the memorial stones and artwork – and he does the bigger pieces.” Her mother was an artist, so Darlene learned to paint and draw at an early www.BizTucson.com
age, painting with oils by time she was 10. “We have the ability to affordably create almost anything for our customer,” her husband Dana said. The two have created awards and memorials for everything from family reunions to the Raytheon Spirit of Education Awards. “We get a lot of orders from police and military for retirement parties. They like the strength and feel of the black marble. “Really, the core cost is the material,” Dana said. “I am always looking for new ideas and ways to create something unique.” A typical granite engraving costs less than acrylic. Because the process is so simple, Laser Art Imaging is cost competitive with more traditional award plaques, he said. Cost effectiveness and quality is why Hailey Thoman, project manager at Linkages, switched from acrylic to granite engraving. “Our award cost about 20 percent less, the service was excellent and the awardees appreciated uniqueness of the awards – they really just stood out.” In addition to awards, Laser Art Imaging has added a number of other product lines, including custom stone tables. Dana said he can help a client create a custom look for an office and affordably design a reception area. “You can print your company logo on a black marble coffee table and for a low cost add a dimension of personalization and
professionalism to your office.” Before this latest venture, Dana already had a track record of success with City Carpet. City Carpet was founded in 1963 and was known for quality affordable carpet installations. After he purchased the company in 1993, he built on that reputation of providing the best service to customers no matter the size of the job. “We have helped people do a single office, and we have also done entire hotels.” In addition to medical facilities and residential customers, City Carpet has been part of remodeling the Loews, Westin, Radisson and Doubletree properties in Tucson. Based on his success in quality customer service at an affordable rate, plus experience working with some of the most sophisticated buyers in town, Dana decided to expand into a new business where he saw a need. Today the Pulsifers keep plenty busy running their diverse companies. Yet like many small business owners, they feel it is important to contribute their time and effort to making Tucson a great place to live. They regularly sponsor uniforms and equipment for Little League and soccer teams. Over the years, they’ve, supported dozens of youth teams and watched hundreds of kids play a sport that they love. “This is our home and we want to be a part of making it a better place,” Dana said.
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BizHEALTHCARE
PHOTO: CHRIS MOONEY
Judy Rich President & CEO TMC Healthcare
Judy Rich Honored as 2012 Healthcare Leader By Mary Minor Davis TMC Healthcare President and CEO Judy Rich recently was named the 2012 Healthcare Leader by the Arizona Hospital and Healthcare Association. The HOPE – Honoring Our Professionals for Excellence – Healthcare Leader award recognizes an outstanding hospital executive or trustee from a member organization who demonstrates significant leadership beyond his or her hospital or healthcare system, and whose activity has led to the improvement of healthcare delivery at the state and/or national level. In announcing the award, the association’s awards committee cited Rich as an exceptional president and CEO “with an impressive record of giving back to the community and motivating others to do the same. She has led the creation of Arizona Connected Care, a Southern Arizona accountable care organization, whose purpose is to bring providers together to improve the quality of care to area residents.” The committee also stated Rich is “a patient advocate first and she ensures quality of care is the top priority by creating 148 BizTucson < < < Winter 2013
an open environment regarding adverse events and identifying and correcting the root causes.” Rich served as chair for United Way of Tucson and Southern Arizona for 2011, and is also on the boards of Tucson Regional Economic Opportunities, Volunteer Hospitals of America and EMERGE, a center for domestic violence. As an AzHHA board member for four years, Rich has shown leadership and the ability to unite hospital executives with the goal of improving the health of Arizonans. She is the current VP of AzHHAand has served on numerous of the association’s committees. Tucson Medical Center, licensed at more than 600 beds, has been Tucson’s nonprofit community hospital for more than 65 years. With Tucson’s first Pediatric Emergency Department, TMC offers intensive care units for adults, children and newborns. Specialty areas include women’s, maternity, cardiac, orthopaedic, neuroscience, imaging and senior services.
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BizRx Lori Bryant CEO ScriptSave
ScriptSave Soared...Plummeted...
Soared Again Six times in the past 11 years ScriptSave made Inc. Magazine’s list of the 5,000 fastest-growing companies – most recently in September 2012. That could imply a story of unfettered success for this national company headquartered in Tucson. Yet between two of those six listings, ScriptSave could well have made a list of the fastest-declining companies. The business nearly collapsed in 2006. In 1994 ScriptSave pioneered the concept of a prescription drug discount card – and business grew exponentially across the nation – particularly with seniors. Then in 2006 the Bush Administration introduced the Medicare Part D prescription drug benefit. That pulled the rug from under the very foundation of ScriptSave’s business. “A significant amount of our user base went away,” said ScriptSave CEO Lori Bryant. “We lost about 80 percent of our seniors who were using our program.” That same year, Walmart introduced a $4 generic drug 150 BizTucson < < < Winter 2013
program. “That caught everybody off guard. It woke the entire pharmacy community up,” Bryant said. “It changed the nature of pharmacy pricing.” The game-changing impact of Medicare Part D and Walmart’s $4 generics led ScriptSave into a new niche – working with pharmacies to help them stay competitive and foster customer loyalty. “We had to reinvent our company,” Bryant said. “We had great people, great clients and great knowledge. We were able to leverage that into reinventing ourselves.” The company adjusted the marketing of its signature product – the ScriptSave prescription discount card. Then it introduced the Pharmacy Savings Program, customizing plans for retail pharmacies across the nation. ScriptSave landed two large clients at the outset – one in Texas and one on the East Coast. “We do a lot of data analytics,” Bryant said. “Most retail pharmacies are not big shops. We build a full program for them. We analyze their patterns of utilization. What types
PHOTO: TOM SPITZ
By Teya Vitu
of medications are purchased that people are paying cash for?” ScriptSave has developed the customized programs for some 10,000 household-name pharmacy locations across the nation, addressing everything from customer retention and website enrollment to formularies and pricing structures. Some pharmacies have a single flat-fee list of covered generic prescriptions. Others have multiple price lists, where generics may range from $4 to $10. “Most likely the things on the $4 list probably cost three, four, five times as much (before 2006),” Bryant said. Today the ScriptSave Pharmacy Savings Program has an 18.9 percent share of the top 50 pharmacies nationwide – a figure Bryant said is projected to increase to 40 percent in 2013. It has 75 employees. Back in 1994, ScriptSave founder Charlie Horn was the first to introduce a no-cost, value-added prescription drug discount card. It was a tough sell at first. He had to convince the insurers and the pharmacies that both sides were interested in taking part in the new prescription drug benefit that ScriptSave was creating. “It was definitely the chicken and the egg,” Bryant said. “We started regionally, securing relationships with some key Blue Cross Blue Shield plans and the retail pharmacies in those regions. The health plans loved the program. It allowed them to provide a very valuable benefit to their members that provided significant savings on all medications.” ScriptSave could then go to pharmacies and say they had major insurance carriers on board. ScriptSave grew that program to 62,000 pharmacies, 350 sponsoring organizations, including insurance companies, senior organizations, associations and others offering health care benefits. The current average customer savings is 48 percent. Over the years ScriptSave cardholders have saved an estimated $3.8 billion in prescription drug costs, Bryant said. Seniors are still part of the customer mix, using the discount card for prescriptions not covered by Medicare. Other customers include those who have no insurance, are underinsured or whose coverage does not include certain drugs. There is no fee for the ScriptSave prescription drug discount card, which can be printed off the website and used immediately. Bryant joined ScriptSave in 2001 as VP of marketing and became CEO in 2005. The next year she faced calamity. Why did she stay on? “Because I love a challenge,” Bryant said. “We had built a good business with a great culture. It just needed to be retooled to meet the new demands of the market. I’m really proud of what the team has accomplished.”
Biz
Inc. 5000 Company Profile ScriptSave 2012 Statistics 3-year growth 96 percent 2011 revenue $34.1 million 2008 revenue $17.4 million Industry Health Industry Rank #202
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BizBRIEFS
Guillermo Figueroa Promoted at CenturyLink Guillermo Figueroa was promoted at CenturyLink to be the new market development manager for Pima and Santa Cruz counties. He is responsible for media interaction, community affairs, sales and marketing. He has more than 22 years of management experience in the telecommunications field with companies including Motorola and US West before joining Qwest. His experience includes technical, construction, engineering, public policy and marketing. Figueroa was working with Qwest when it merged with CenturyLink in 2011. Before that, CenturyLink had been primarily in the Midwest and South, while Qwest served the West. In addition to telecommunication services, the two firms had complementary assets – Qwest builds fiber optics for Fortune 500 companies while CenturyLink is strong in the residential market. CenturyLink also recently acquired a company called Savvis, which provides cloud Internet storage services. The Fortune 500 company is headquartered in Louisiana. The newly promoted executive serves as senior VP on the board of the CenturyLink Pioneers. He recently became a board member of the Tucson Hispanic Chamber of Commerce. Figueroa received his bachelor’s degree from Instituto Tecnologico de Hermosillo in Sonora, Mexico. He and his wife Virginia have two boys, David and Michael. Biz
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New Leadership at Carondelet Carondelet Health Network has announced five leadership appointments.
Dr. Amy Beiter has been appointed president and CEO at Carondelet St. Mary’s Hospital. Beiter has been a member of the St. Mary’s medical staff since 1992. She joined St. Mary’s administration in 2007 and was named the hospital’s chief medical officer in 2008.
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Tony Fonze, formerly Carondelet Health Network’s chief information officer and a VP of Ascension Health Information Systems, is now president and CEO at St. Joseph’s Hospital. Fonze has held a variety of leadership positions, including healthcare operations, information systems and research and development.
Dr. Don Denmark has been appointed senior VP and chief medical officer. Most recently Denmark was Carondelet Health Network’s lead chief medical officer. He will continue as chief medical officer at St. Joseph’s.
Martha Gerganoff has been appointed senior VP and chief nursing officer. She will continue as chief operating officer/ chief nursing officer at St. Mary’s. Gerganoff previously was CEO of HealthSouth Rehabilitation Hospital of Southern Arizona.
Tawnya Tretschok has joined Carondelet Health Network as VP, executive director of physician practices. Tretschok is responsible for operational leadership and oversight of Carondelet Medical Group and Carondelet Specialist Group.
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BizBRIEFS
Waldrum Selected to Lead UA Health Network Dr. Michael R. Waldrum has been named president and CEO of University of Arizona Health Network. Waldrum currently serves as CEO of the University of Alabama Hospital at Birmingham and VP of the UAB Health System. “Dr. Waldrum brings vision and experience at a critical time in UAHN’s history as we prepare to meet the challenges of healthcare reform,” said Steven W. Lynn, chairman of the UAHN board of directors. Dr. Steve Goldschmid, dean of the UA College of Medicine, said, “As a physician executive, Dr. Waldrum has a unique perspective and proven record of leading a highly complex academic medical system. His experience will be critical to the success of the Health Network’s mission of providing excellent medical education, patient care and cutting-edge research.” Waldrum graduated from the University of Alabama School of Medicine, completed his internal medicine residency at the Mayo Clinic in Minnesota, received a master’s degree in epidemiology from Harvard School of Public Health and earned his MBA from the University of Michigan. “I am honored by the trust the UAHN board and the University of Arizona have placed in me to lead this great institution, and to be connected to one of the nation’s leading research universities,’’ Waldrum said.
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Healy Leads Cox Communications Public Affairs Team Stephanie Barat Healy has been named director of public affairs for Cox Communications in Southern Arizona. She is responsible for public affairs and community relations in Pima and Cochise counties. “We are honored to have Stephanie heading up our Southern Arizona Cox Communications public affairs team,” said Lisa Lovallo, market VP for Southern Arizona. “Stephanie and her family have been in Tucson for many years,’’ Lovallo continued. “She cares deeply about our community and has a proven track record of bringing diverse groups together to address public policy issues in a collaborative, sensitive and positive way. She will be a great addition to our team.” Prior to Cox, Healy held the position of executive VP for Southern Arizona Leadership Council. She has also served as president of the Hospital Council of Southern Arizona. Healy also held the position of director of economic development for the Tucson Metro Chamber, where she oversaw the division’s development of programs that promoted Tucson as a center for global trade and investment. She became a Flinn-Brown Academy Fellow in 2011 after being nominated and accepted into the Arizona Center for Civic Leadership, a statewide program to nurture and develop leaders. Biz
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BizMILESTONE
Providing Customers
Royal Treatment In a town where some car dealers are better known than the mayor and governor, you probably know the name of the well-respected Royal Automotive Group of Tucson – but not the quiet leaders who built it. And that’s after 35 years of putting Southern Arizonans in Buicks, Isuzus, Hummers, Lexus, Jaguars, Land Rovers, Kias, Cadillacs, GMCs and soon –MINIs. The Weitman family team seems to like it that way. They’re passionate
about sports, cars and the community – but quietly. It starts with Royal’s owner and president, Paul Weitman. He played high school basketball in Georgia, went to college there on a basketball scholarship and went on to coach high school basketball there. He switched careers as a young man and started selling cars at a Buick dealership in Jacksonville, Fla., becoming sales manager and eventually GM. He came to Arizona with financial
backing from that dealership group to head Tucson’s Buick dealership on Speedway near Columbus in 1977. Five years later he bought out his backers. Since then the Royal Automotive Group has grown to several dealerships and two collision centers, numerous buildings and 358 employees. Adding – and sometimes losing – marques of distinction over the years, Royal expanded to showrooms and service centers adjacent to the Speed-
From left – Neal Weitman, Paul Weitman, Steve Lace and Craig Weitman
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PHOTO: CARTER ALLEN
By Dan Sorenson
way dealership, and later to the Tucson Auto Mall and the 22nd Street automotive strip near Swan Road. “Success is about treating customers like a guest in your own home,” Weitman frequently says, adding that this is the reason his business has been able to survive while other businesses were struggling. The ownership team also expanded to include Weitman’s sons Neal, GM of the two Lexus stores and Jaguar-Land Rover, and Craig, GM of Royal BuickGMC-Cadillac. Royal is also overseen by VP Steve Lace who joined the company in 2000. Outside the automotive world, sports – especially basketball – run in the Weitman blood. “Sports was a big deal around our house,” Craig said. Like his father, Craig coached high school sports – but in his case football, in the San Diego area during and after college. He said neither he nor his brother felt any great pressure to join the business. Other than a recollection of detailing cars over Christmas break in fourth or fifth grade so he could buy his mother a Christmas gift, Craig spent little time in his childhood around the dealership. As he got older he discovered a love for coaching while in college. “After college I took a job with an insurance company. I quit that to continue coaching football full time. After that season was over I worked with a software company, but the calling for coaching was too great and I ended up returning for the next football season.” Ultimately he decided he couldn’t keep taking jobs then quitting to coach the next season. He joined the car business and worked his way up from the bottom. Neal also spent some time “hanging around the lot, washing cars” in high school, but didn’t grow up absolutely knowing he’d be a car guy either. “I’d come in over summer break (in college). I thought it deserved a chance, to see if I would like it. I went through training. I started selling in the winter of 1994. I
did that for four or five years. I wanted to fit in like anybody else.” Over the years, Royal’s various dealerships have piled up more than their fair share of sales and service quality awards – including several #1 national satisfaction awards. But the company M.O. has been to keep a low profile for the individuals involved. “They’re very humble people,” said Todd Helmick, Royal’s marketing director. They are not out to make news – which happened with an offhand media mention that Paul Weitman was friends with legendary University of Arizona men’s basketball coach Lute Olson. When pressed, Weitman admits,“Lute’s a friend – but I like to keep it low.” He said, “I’m a big Arizona supporter. I played in high school. I went to college on a basketball scholarship. And, having coached it, I’d have to say it’s my sport. I love college basketball. “Lute and I just became friends and I guess we have been since he got here 25 or 26 years ago. We’ve traveled together, had New Year’s Eve together. I even named a horse after him – Midnight Lute. Won the Breeders Cup twice,” he said, warming to one of his favorite subjects. “Here’s how that name came up. Tarkanian (Jerry, head coach of University of Nevada, Las Vegas) and Lute were after the same player – Tom Tolbert. Tark thought he had Tolbert, but at the last minute Tolbert decided to get to Arizona. And Tark said, ‘Midnight Lute got him,’ meaning at the last minute. We were looking to name a horse and named him Midnight Lute.” The thoroughbred is owned by Weitman, fellow car dealer Karl Watson and other partners. Whether the subject is coaching, thoroughbred racing or the automotive industry, the recurring theme seems to be making careful and thoughtful choices every step of the way. However, Weitman is the first to admit that some things just can’t be foreseen. He started out with one of the four General Mocontinued on page 158 >>>
Commitment to Community The Weitman team is very serious about philanthropic causes and supporting the community, though they generally prefer to stay out of the limelight. If you Google these busy execs you won’t find much about them – yet the Weitman imprint is wide – from Salpointe Catholic High School to the Tucson Symphony Orchestra and the Tucson Humane Society, and especially PGA golf events and the Juvenile Diabetes Foundation. • Neal Weitman is currently VP of Tucson Conquistadores. He also was one of 10 “up and comers” added to the Bank of Tucson advisory board in 2007. • Craig Weitman’s been a booster of local youth sports teams and basketball camps for underprivileged children. It’s his first year as a member of the Tucson Conquistadores. • Paul Weitman was honored for his longtime community contributions as a Father of the Year by the Father’s Day Council Tucson. He’s served on boards of UA Foundation, Tucson Airport Authority and a local bank. He’s a life member and past president of Tucson Conquistadores. • Steve Lace’s community involvement includes serving as president of the Tucson New Car Dealers Association and board member of Tucson Regional Economic Opportunities. The Royal Automotive Group supports a variety of nonprofit, fraternal and service-oriented groups. Their aim is to enrich the lives of the members of our community.
Biz
Pictured from left are the eight brands that the Royal Automotive Group represents – Buick, Cadillac, GMC, Jaguar, Range Rover, KIA, Lexus and Mini.
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Winter 2013 > > > BizTucson 157
BizMILESTONE continued from page 157 tors “sister” brands that survived the U.S. automotive shake out – Buick. He also chose a bunch of other winners on the way to the present day lineup. Weitman’s first pick to expand was Toyota’s Lexus, almost instantly the biggest success in the then-new Japanese luxury car market. Saturn was being offered to them by GM at about the same time, but his dad turned it down, Neal said. Even Hummer and Isuzu – two of their GM brands that did go down – had some good years and produced customers who are still loyal to Royal, according to the Weitman brothers and Lace. “Some luck is involved for all of us with things in our lives,” Paul Weitman said, downplaying the Lexus acquisition. “I can’t say I knew Lexus was going to be good.” There might have been a bit more luck, along with good business instincts, particularly with some of the latter picks – the Jaguar of then-questionable reliability, the oddball Land Rover and the giant love-it-or-hate-it Hummer SUV. Shortly thereafter Jaguar made massive improvements in reliability. Land Rover made its biggest mark ever in the United States and Hummer became an almost instant hit and celebrity vehicle. Royal’s latest acquisition is the city’s long-awaited first MINI dealership, another apparent coup. The re-creation of a tiny 1960s-1970s-era British econo car, MINI is actually made by a division of BMW. Nationwide, BMW dealers seem the natural proprietors for the wildly popular little performance-oriented cars. However, Royal recently landed the long-awaited Tucson dealership, expected to open in early 2013 at 4635 E. 22nd St. This is welcome news for the estimated 1,000 plus Tucson-area MINI owners who have been driving to Phoenix for sales and service. Royal’s luck – or uncanny acumen – helped it survive the U.S. auto manufacturer bloodbath of the last decade. General Motors first killed off Oldsmobile in 2004, then Saturn, Hummer and Pontiac in 2010. During the auto bailout, GM left its dealers in the dark while they decided who would stay and who would go under in a new realignment of dealers. Royal Buick, long established in Tucson and with a solid reputation, seemed a sure thing. But GM execs announced that Royal was out of the Buick business. Just down the street, Quebedeaux Pontiac/GMC, which already had lost out with the end of the Pontiac line, became the Buick dealer under the realignment. Another longtimer, Don Mackey, the veteran Cadillac/GMC dealer, also lost his dealer status. It was a crazy time. Ultimately Royal came out ahead – buying Mackey’s Cadillac operation at the Tucson Auto Mall, being awarded a GMC dealership and, oddly, the city’s second Buick rights. Buick was always something special – it was the line just under the Cadillac – the car driven by doctors and pastors of thriving congregations. It was the GM car with a quiet dignity – no flash or bombastic advertising. Buick bridged eras, though conservatively. Golf pros drove Buicks. Tiger Woods pitched for Buick. Buick competed with Ford’s Crown Victoria and the Mercury Grand Marquis for the big car market in Green Valley. “We do skew luxury,” said Neal, noting the group’s highend line up of Lexus, Cadillac, Jaguar and Land Rover. “But 158 BizTucson < < < Winter 2013
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it doesn’t matter” what the line, “people want to be treated well.” Customer service is a longtime hallmark of Royal. “We focus on fundamentals that other people maybe miss. How we greet people – we try to master the simple stuff,” Neal said. “Southern hospitality,” Craig added. Royal’s entry-level brand was Kia. Kia had a rough time with quality in its first couple years, Paul Weitman said. “I think we were the third Kia dealer in the United States. I can remember after we had it for a while, about six months, I didn’t think the quality was as good as it should be. I called the Kia people and they came to see me. I said, ‘We’re not accustomed to our customers not being treated right. I’m going to give you the franchise back.’ They said, ‘Please, would you just give us a few months?’” Weitman said the problem was a labor dispute and some sabotage of wiring harnesses by disgruntled employees at the Korean factory. “I said, ‘Sure.’ So, they got that straightened out and since that the quality has improved. Their quality has come up the entire time,” said Weitman. “They’ve got a 10year warranty.” Marketing Director Helmick said Royal has managed to mesh its old-fashioned service-oriented approach with the modern necessity of Internet marketing. “We’ve definitely recognized the need to be relevant in the Internet world,” he said. “We need to be hyper transparent. You won’t see one set of pricing online and then come into the dealership and see another. When we present the numbers, there’s nothing confusing.” In fact, in late 2008 Royal introduced what it calls “a highly researched and streamlined selling method.” All vehicles are marked with the lowest price right up front – and Royal sales consultants are no longer paid on commission. In an industry with a lot of turnover, “we’ve got a lot of people who have been with us for a long time,” Neal said. According to Helmick, the average tenure for management staff is 18 years. VP Lace added, “The majority of our sales people have never sold anywhere else.” Biz
National Awards The Royal Automotive Group of Tucson consistently receives high rankings among all dealers in the United States. Lexus
• Elite of Lexus Award (23 of the last 24 years in business) • #1 in service satisfaction (out of 234 dealers - 2011 YTD) • #1 in Sales Satisfaction (out of 229 dealers - 2009)
Land Rover
• #1 in service satisfaction (2010 & 2011 out of 166 dealers)
Buick & GMC
• General Motors Mark of Excellence Award (2002 to 2011) • Buick Dealer of The Year (2010 and 2011)
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From left – Ginny Clements, Chairman of the Board, Golden Eagle Distributors and Anita Kellman, Founder and Executive Director, Beat Cancer Boot Camp
PHOTO: KRIS HANNING
BizHOPE
Free Workshop Offers Hope for Cancer Warriors By Gabrielle Fimbres For half a century, Ginny Clements stayed quiet about cancer. At age 15, Clements – the head of her school’s pom-pom line – lost a breast to cancer. “I didn’t have a care in the world until I got breast cancer,” she recalled. She was born into a generation that didn’t talk about the big “C,” and from 1956 to 2006, Clements never shared her experience, unless it was with close friends or family. But 50 years after a radical mastectomy, this longtime Tucson business woman and philanthropist decided it was time to start talking. “It was time to share my story,” Clements said. “I started Ginny L. Clements Breast Cancer Research.” Since 2006, Clements, chairman of the board at Golden Eagle Distributors, has annually donated money towards breast cancer research at the University of Arizona. She has also pledged a gift upon her death. To provide knowledge, inspiration and hope to other survivors, Clements is teaming up with Anita “Sarge” Kellman, founder and executive director of the Beat Cancer Boot Camp. On Feb. 9 they are presenting Hope: Surviving Cancer & Beyond. The free event will be held at St. 160 BizTucson < < < Winter 2013
Gregory College Preparatory School. Kellman will lead a boot camp workout at 8 a.m. Speaker presentations will run from 9 to 11 a.m. “The event is for survivors and anyone who wants to learn more,” Clements said. “Cancer is a scary thing – but look at me.” Clements will share her personal story, along with UA Deputy Director of Athletics Rocky LaRose, also a breast cancer survivor. Dr. Lana Holstein, a former family practice physician, colorectal cancer survivor and now life
HOPE: SURVIVING CANCER & BEYOND Saturday, Feb. 9
8 a.m. Beat Cancer Boot Camp Workout 9-11 a.m. Speaker Program St. Gregory College Preparatory School 3231 N. Craycroft Road Free and open to the public For more information: info@beatcancerbootcamp.com
coach, will discuss sexuality after cancer. UA scientist Joyce Schroeder will provide information on the future of cancer research and a drug she is investigating. Schroeder is conducting research on an anti-cancer drug that appears to block the growth and metastasis of breast cancer cells – and possibly lung cancer cells – without toxic side effects. She’s a UA associate professor of molecular and cellular biology. Clements has funded much of the research required before the FDA will approve its use in human clinical trials, Schroeder said. “I am hoping to eradicate cancer in my lifetime – and research is the answer,” Clements said. Also important in the battle against cancer is exercise, Kellman said. She has led Beat Cancer Boot Camp at Udall, Brandi Fenton and Northwest Community Neighborhood parks for eight years and is a clinical liaison for patients undergoing breast biopsies and other procedures. “Exercise makes you physically stronger so you are mentally tougher to beat any battle,” Kellman said. “Exercise is a powerful tool in preventing cancer and preventing the recurrence of cancer.” Biz www.BizTucson.com
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BizGOVERNMENT
Arizona Gov. Jan Brewer
Tucson Mayor Jonathan Rothschild
Tucson Metro Chamber Presents
State of State & State of City Events Strategies for building local and state economies are expected to be key topics at the 2013 State of the State and State of the City addresses, sponsored by Tucson Metro Chamber. Arizona Gov. Jan Brewer will present her State of the State address Jan. 15 at the Westin La Paloma Resort & Spa. Tucson Mayor Jonathan Rothschild will present the State of the City Feb.
19 at JW Marriot Starr Pass Resort & Spa. Brewer, a longtime Arizonan, has served as governor since 2009. Prior to becoming governor, she served as secretary of state and Maricopa County supervisor as well as serving as a member of the Arizona Senate and House of Representatives. Brewer has spent the last three decades in public service.
Rothschild, a native Tucsonan, has served as mayor since 2011. He is an attorney, serving as managing partner at Mesch, Clark & Rothschild from 2001 to 2011. He has volunteered his time with numerous boards, including serving as board president of Casa de los Niños and Handmaker Jewish Services for the Aging.
Biz
STATE OF THE STATE
STATE OF THE CITY
The Westin La Paloma Resort and Spa $59 for Tucson Metro Chamber members $75 for non-members
JW Marriot Starr Pass Resort & Spa Go to www.tucsonchamber.org for ticket prices and more information on both events.
Tuesday, Jan. 15 11:30 a.m. to 1 p.m.
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Tuesday, Feb. 19 11:30 a.m. to 1 p.m.
www.BizTucson.com
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BizVENTURE
Diamond, Kasser Invest in Growth Companies The Diamond Holualoa Capital team from left - David Goldstein, Donald R. Diamond, Ngoc Can, I. Michael Kasser and Rick Kauffman. 164 BizTucson < < < Winter 2013
Photos: BalfourWalker.com
By David B. Pittman
Donald R. Diamond and I. Michael Kasser, two of Southern Arizona’s most successful businessmen, each has accumulated substantial fortunes investing in real estate. But in today’s troubled times neither Diamond, chairman of Diamond Ventures, nor Kasser, president of Holualoa Companies, believes the real estate industry will lead Tucson out of its current economic doldrums into a robust future. Instead, each predicts small, growth companies utilizing high-tech innovation will be the model to turn around the sluggish local business climate, create new, high-paying jobs and provide the increased diversification they maintain Southern Arizona desperately needs. Putting their money where their mouths are, Diamond and Kasser have joined forces and formed Diamond Holualoa Capital, a limited liability corporation that will identify and invest in up-and-coming growth companies with promising entrepreneurial ideas. Joining Diamond and Kasser in the new business are Diamond Ventures’ President David Goldstein and Holualoa Companies CFO & Co-Founder Rick Kauffman. “Because of the groundbreaking research and development taking place at the University of Arizona, and because Southern Arizona is such a great place to live, I believe we are on the cusp of creating new high-tech industry that in itself will provide a big piece of the puzzle we need to get Tucson back on track,” Diamond said. Both Diamond and Kasser said it will be many years before the local real estate market fully recovers. In addition, high labor costs and regulatory factors make it difficult for U.S. manufacturing industries to hold their own with foreign competition from Mexico, China, India and other developing nations. Instead, the real estate chieftains contend it is time to look to high-tech, innovative growth companies to lead the economic recovery. “We have always done well in this country by using our heads and coming up with new, important ideas. Whether it goes to the moon or Silicon Valley, or right here in Tucson, that is where the www.BizTucson.com
future of this country is in terms of getting us out of this six-year mess we’re in,” said the 84-year-old Diamond. “If we create the right atmosphere in this country to encourage innovation, we will stay ahead of the rest of the world as we always have.” Kasser, 72, believes it is difficult for local political leaders and economic development specialists to recruit huge national and international firms to Tucson because of the major infrastructure investments those businesses have established elsewhere. “General Electric is unlikely to bring its headquarters here – it’s just not going to happen,” he said. “But we can encourage the establishment of many small, high-tech startups that have the
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If we create the right atmosphere in this country to encourage innovation, we will stay ahead of the rest of the world as we always have. – Donald R. Diamond
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Co-Founder Diamond Holualoa Capital
potential to grow into something big. The prime example here for that kind of growth is Ventana Medical Systems – but there are many others that are smaller that have also achieved significant success.” While Kasser and Diamond expect to make profits providing investment capital to firms in need of financial resources to grow, they also make no secret of their desire to help Tucson and Southern Arizona diversify economically by creating high-paying, high-tech
jobs that they hope will jump start local business activity. “Don is a tremendous booster of Tucson – he always has been,” Kasser said. “He loves Tucson and wants it to flourish, and I feel the same way. We also hope to make money at it, which means we aren’t going to make investments that don’t make sense. Our priority is to invest in projects that are sourced in Tucson and beneficial to the Tucson area.” There are multiple reasons Diamond and Kasser chose to collaborate in high-tech investing. Though the two have been frequent competitors in business, they respect one another and have developed a solid friendship. They also believe they can do a more complete and cost-effective job of evaluating companies together than they could do separately. Both Diamond and Kasser have been making investments in high-tech growth companies in recent years. Though they describe capital investment as a hit-and-miss proposition, both have had enough hits to achieve profitable results. Diamond Ventures struck gold through an investment it made in 2000 in a two-year-old company called Knowledge Computing that specialized in crime-solving software. The business, which provides software to about 3,000 police agencies nationally, still operates from Tucson, but is now a division of IBM after being purchased by the business giant in October 2011. One of Holualoa Companies investment successes is CyraCom, a Tucson company formed in 1995 that is the leading provider of over-the-phone interpretation and language translation services for healthcare, business and government clients. CyraCom was named to the Inc. 5000 list of fastest growing companies in 2007, 2009, 2010 and 2011. Diamond Holualoa Capital formed in February, but revved up its efforts in June with the hiring of Ngoc (pronounced “Knock”) Can, who recently graduated from UA with an MBA in finance. It is her job to evaluate companies seeking capital funds and provide reports to Kasser, Diamond, Goldstein and Kauffman, so they can determine continued on page 167 >>> Winter 2013 > > > BizTucson 165
Diamond Holualoa Capital’s Investments COMPANY NAME
November 12, 2012
DESCRIPTION
STAGE OF DEVELOPMENT
SynCardia manufactures the world’s first and only U.S. Food and Drug Administration, Health Canada and CE approved total artificial heart.
SynCardia is expanding its operation to meet the market demand for its total artificial heart.
CyraCom
CyraCom provides telephonic interpretation and language translation services in more than 170 languages for healthcare.
CyraCom is expanding operations, recently opening new call centers in Phoenix and Tucson. It has been expanding into non-healthcare related businesses as well.
Cancer Prevention Pharmaceuticals
Cancer Prevention Pharmaceuticals is working on a product to prevent polyps, the primary cause of colorectal cancer.
It is ready for two pivotal Phase 3 trials in coloncancer-related indications.
Calimmune
Calimmune is developing a one-time outpatient gene therapy to treat HIV/AIDS.
The FDA has approved Calimmune’s application to begin the first human trial in the U.S. The trial will start in 2013.
IDx
IDx is developing a new generation of diagnostic tools in the area of retinal imaging.
IDx is working on its study in preparation for Premarket Approval submission to the FDA.
MicroMed
MicroMed manufactures miniature, implantable heart assist pumps for patients suffering from serious heart failure.
MicroMed is selling its products in Europe. MicroMed has received their FDA approval for its trial in the U.S.
Acudora
Acudora is developing software platforms embedded in digital devices to enable users to enjoy a more consistent voice and audio experience despite the surrounding noise environment.
Acudora is in discussion with strategic partners for licensing deals.
Post.Bid.Ship
Post.Bid.Ship enables transportation providers to compete for business by bidding to haul loads posted by shippers of commercial freight.
Post.Bid.Ship continues to expand its subscriber base.
Medical Referral Source
Medical Referral Source facilitates the referral process by eliminating multiple antiquated and complex methods for finding the right specialists and making referrals in the healthcare industry.
Medical Referral Source is generating revenue and expanding into new geographic markets.
AdiCyte offers adipose tissue-banking services to patients, facilitating the use of one’s own tissue or stem cells derived from such tissue for cosmetic procedures, reconstructive procedures or regenerative medicine applications.
The company has begun the initial establishment of an AdiCyte Physician Network of plastic surgeons and cosmetic dermatologists who register with the company and educate the applicable patient population within their practice regarding the option to bank their adipose tissue and stem cells. REhnu is working on the design of the Gen-3 commercial version.
REhnu
REhnu is commercializing unique and proprietary technology developed in conjunction with University of Arizona, for which REhnu holds exclusive license. The technology is a concentrating photovoltaic solar electric generating system.
HTG Molecular
HTG develops and sells gene and protein expression assays for drug discovery, clinical trial and diagnostic applications.
The company is selling assays for research purposes and will be seeking FDA clearance in the future for patient diagnosis.
Medipacs
Medipacs has invented a wearable, programmable and disposable non-mechanical infusion pump used for drug delivery.
The company is currently targeting the veterinary market for its product and will seek FDA approval in the future.
SynCardia
AdiCyte
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continued from page 165 which applicants will be allowed to make formal presentations seeking capital assistance. Kasser said growth companies in need of investment capital should email Can at can.ngoc@gmail. com. Shortly after Can was hired, Diamond Holualoa Capital brought in Dr. Raymond L. Woosley, president of AZCERT, who formerly headed C-Path and the UA College of Medicine, as a consultant in areas of medical technology. “Don and Mike are stepping up and investing in local companies,” said Woosley. “It’s not just about making
“
BizVENTURE money, but also about creating highpaying jobs and improving the economy in Tucson and Southern Arizona. These guys are doing good work and I’m proud to be a part of it.” David Allen, executive director of Tech Launch, a newly formed technology transfer program at the UA, praised the efforts of Diamond and Kasser to invest in local, high-tech firms with growth potential. “I’ve met with them and we’ve had productive discussions,” said Allen. “Those discussions will continue. I am confident we will enter into deals with them in the future.”
Diamond Holualoa Capital is about more than delivering needed investment funding. Diamond and Kasser say they also provide needed executive management expertise to technology experts who often need business assistance. “Many of these developing businesses have smart people and innovative products – but they don’t know how to be successful in the marketplace,” said Diamond. “There is a big difference between coming up with a product, which these brilliant people can do, and running a successful business.”
Biz
Our priority is to invest in projects that are sourced in Tucson and beneficial to the Tucson area.
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– Michael Kasser, Co-Founder, Diamond Holualoa Capital
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Winter 2013 > > > BizTucson 167
PHOTO: KRIS HANNING
BizCONSTRUCTION
From left – Bobby Bond, Sprinter of Tucson; Phyllis Russell, Esperanza En Escalante; Jon Achilles, Achilles Air Conditioning Systems (Volunteer Day Chairman);Eric Buchholz, Sun Mechanical Contracting; Mark Riggi, Millwork by Design; Rudy Garcia, Jr., RG & Sons Plumbing; Randi Nelson-Shipley, RNS Architects; Mike Johnson, Chestnut Construction Corporation; Toni Carroll, Southwest Gas Corporation; Tom Dunn, Arizona Builders’ Alliance; Susan Mulholland, Mulholland Art & Design Commercial Interiors, and Steve Boyer, Basically Blinds.
Arizona Builders’ Alliance Improves Housing for Veterans By Sheryl Kornman
Volunteers recently worked on 12 buildings on nearly 20 acres to improve the living conditions for veterans in temporary and transitional housing provided by the Tucson nonprofit Esperanza En Escalante. Labor and materials were donated by members of the Arizona Builders’ Alliance. The organization works to maintain the highest standards in the industry through training and sharing information. Each year it helps others less fortunate by repairing and rehabilitating structures using the tools of its trade. The 2012 recipient, selected by ABA’s Southern Arizona chapter through a competitive application process, is a nonprofit that helps veterans fighting addiction, trauma and mental illness to regain a foothold in life. Social worker 168 BizTucson < < < Winter 2013
Phyllis Russell is executive director of Esperanza En Escalante. Tom Dunn, ABA’s Southern Arizona director, said the alliance is “built on a foundation of service to the community. Every year our members go above and beyond expectations and truly make a difference in others’ lives. “Their talents are planning, creating, building and re-building.” The work ABA is doing at the veterans’ housing site includes installing fencing for a dog park so that veterans staying at the facilities can keep a dog. Dogs have proven to be helpful to veterans who are suffering from stress, trauma and brain injury. “Phyllis said the dog park the volunteers are building is bringing excitement to the men who live there (at the facility). They’re talking about getting
dogs. They can’t wait.” Dunn said. The ABA’s volunteer efforts are rebuilding futures, he said. “To me, this is a big step for these veterans. For many of these men, they haven’t thought that they had a future. But they’re thinking about it now. They are thinking about tomorrow. “Sometimes a small hand up or step forward starts the momentum that brings these men back,” Dunn said. Russell said Esperanza En Escalante has the capacity to house 51 veterans in the transitional portion of the program. The ages of the veterans range from the 20s to the 70s. Some served in Vietnam, others in the first Gulf War and the conflicts in Iraq and Afghanistan. The main facility at 3700 S. Calle Polar has 19 multiple-occupancy homes in 12 buildings. www.BizTucson.com
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Their talents are planning, creating, building and re-building.
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– Tom Dunn, Southern Arizona Director
Arizona Builders’ Alliance
“The number of people on site varies because of the composition of the families in the family units, of which there are eight,” she said. “Additionally, we have a contract with the Southern Arizona Veterans Health Care System to provide housing for 16 veterans who are in the substance abuse treatment program. Their stay is for a shorter time than those in transitional housing.” Twenty-nine single male veterans live at the Calle Polar site. Eleven single male vets and one couple – the husband is the vet – live at a leased site on Lee Street. Russell said the nonprofit sought help from the builders’ group because “we have been trying to rehabilitate our buildings, some of which have been housing veterans since 1993. Since we are a nonprofit, it is often difficult to find the resources to handle major rehabilitation projects. We are very thankful for the very thorough job the Alliance is doing on their project here.” The ABA’s many hours of volunteer effort at the site culminated with a Volunteer Day event 8 a.m. to 1 p.m. on Dec. 1 at the Calle Polar site. The volunteer builders’ groups provided landscaping, painting, electrical fixtures, installation of bathroom fixtures, fascia board replacement and general cleaning. Donations of lawn furniture, chairs, blankets and personal care items were gathered by volunteers. In 2011 the ABA recipient was the House of Neighborly Service. In that project, more than 200 volunteers from 70-plus ABA member companies donated $125,000 in materials and labor to repair and upgrade the facilities for this nonprofit, which helps the homeless. Biz www.BizTucson.com
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BizCONSTRUCTION Scott Candrian Founder Sun Mechanical Contracting
Sun Mechanical Leads With Technology for 35 Years Sun Mechanical Contracting has seen the industry go from paper-and-pen drafting to computer-generated 3D designs and automated metal cutting. The firm has also seen annual revenues increase from $77,000 in its first year to combined revenues of $225 million 35 years later. When Scott Candrian opened in Tucson in 1977, the company’s primary scope was plumbing and overhead fire sprinkler systems. He had five employees at a shop on Ventura Street. Today he owns seven companies across the nation and has offices in Phoenix and Casa Grande. His workforce designs, fabricates and installs plumbing, piping, HVAC sys-
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tems, fire protection, structural steel and clean rooms. The Tucson headquarters employs 275 people and includes a 35,000-square-foot automated fabrication shop. Candrian’s commercial client base is so large, it’s hard to name a business that has not used his services. The list includes Intel and Motorola, Raytheon Missile Systems, military bases, courthouses, university buildings and hospitals. He’s currently fabricating carriers, among other components, for the new University of Arizona football stadium north-end-zone addition. Sun Mechanical’s most unique job was the mechanical work for Biosphere II during its original construction, continued on page 171 >>>
PHOTO: CARTER ALLEN
By Christy Krueger
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Cash is not the only currency in our business. Earning the respect of others – and never compromising quality – is worth just as much if not more than money. – Scott Candrian Founder, Sun Mechanical Contracting
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continued from page 170 he said. Contracting with UA also can get interesting, as his crews often operate underground in tunnels that run beneath the campus. Diamond Children’s Medical Center at UA Medical Center was the company’s largest job at $22 million. Raytheon was close behind when it went through remodeling in 1999 and 2000, at a cost of $20 million.. Each Sun Mechanical job begins with the design process using CAD software. This is sent to the fabrication shop where it integrates with the plasma cutting systems to guide the material cuts. Other equipment handles further production, such as folding scored galvanized steel for ductwork. Candrian tries to keep the fabrication labor to at least 20 percent of total man hours per job. Modern technology has allowed all phases to become more efficient. Before Sun Mechanical had the benefit of a large fabrication shop and automated machinery, most welding was done in the field, which was labor intensive. “Now one or two welders can do it in the shop and then take it to the job, instead of 20 welders on-site,” Candrian noted. The company was not greatly affected by the recession, thanks to its long-standing good name and securing large projects such as Tucson Medical Center’s west-wing addition and Diamond Children’s Medical Center. “Those jobs were 18-plus months,” Candrian said. “Because of our reputation, a lot of people want to use us. And we have repeat clients.” He did see a slight downturn in 2011 revenue. “Because of the competitive nature of the market, it drove prices down. We were off compared to other years – but we still did pretty well.” Sun Mechanical’s impressive office and fabrication shop on Contractors Way and Columbia Street are big selling points for the company. “We market the company by bringing potential clients here and demonstrating the value we offer. Our excellent safety record, quality control, the 3D coordination department and fabrication facility – all these add value to a project that others may not provide. It’s pretty persuasive when we get them here,” Candrian said. He believes that giving customers superior products and service is more valuable than anything. “Our philosophy has always been that cash is not the only currency in our business. Earning the respect of others – and never compromising quality – is worth just as much if not more than money. If you accomplish those goals, the profits will always follow.” Biz www.BizTucson.com
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From left – Dave Keller, Buck O’Rielly, Lynn Cuffari and Richard Schaefer
PHOTO: KRIS HANNING
BizEDUCATION
St. Augustine on Path of Growth By Teya Vitu Every day between first and second period, all 143 students at St. Augustine Catholic High School gather for 10 or 15 minutes in the school’s chapel. Sometimes a teacher leads the session, sometimes a student. It can be a prayer, it can be an inspirational story, it can downright resemble a coach’s rousing half-time locker room talk. “That brings us together as a community every day,” said Principal Lynn Cuffari. That sense of community goes to the core of how St. Augustine grooms teenagers for college and life. “The St. Augustine environment was so unthreatening,” said Alex Ahlstrom, an 11th grader who moved here from Sacramento to attend St. Augustine and noticed he was not treated as an outsider. “It allows you to feel comfortable in your own skin. If you aren’t afraid to be yourself, you can accomplish anything.” Just about every St. Augustine graduate goes on to college. “The small class size has really helped us in not only education but building community,” said Mariela Encinas, a senior who has attended the school all four years. She’s also captain of the volleyball team. “It makes us feel at home 172 BizTucson < < < Winter 2013
when I’m in school. It makes me more comfortable in my learning environment.” Dave Keller, the school’s president, believes students should feel comfortable in school. “When people have a shared values system, it allows them to engage with each other more easily. They do feel comfortable with themselves,” Keller said. “If you’re not comfortable, you’re not going to be successful. Every successful school should be preparing students for the next level.” St. Augustine operates on a schedule with four 90-minute classes a day, with courses alternating every other day. Students are required to complete 28 credits, including four years of theology. St. Augustine offers 11 Advanced Placement courses. “No mistake about it – this is a college preparatory program,” Cuffari said. You have to apply, be interviewed and supply recommendations from your eighth-grade math and language arts teachers as well as middle school principal. The idea is to instill the college preparatory aspect from before day one.
After school each day from 2:45 to 3:30 p.m. teachers are available for tutorials. More than 30 percent of students take part, some because they need help, others because they recognize the value of one-on-one interaction with teachers. “Face time with teachers is important,” Cuffari said. Keller and Cuffari came on board as a team at St. Augustine in June 2011. As principal, Cuffari oversees all things academic. As president, Keller handles the business aspects. Keller also is principal at Our Mothers of Sorrows Catholic School. Together they have cut costs and committed a greater share of funding for student services and curriculum. Enrollment is on the rise – last year it was just over 120 students, this year it’s 143 and next year’s goal is 160. Several changes in leadership and financial models over the years led the school’s board of directors to re-focus its business plan while maintaining the vision of founding principal, Sister Lauren Moss – whose goal was to provide a challenging academic environment in a spiritual setting. Richard Schaefer, president of board, and auto magnate Buck O’Rielly, also a www.BizTucson.com
board member, tackled the simmering financial crisis by developing a realistic long-range funding plan that includes a comprehensive budget and attaining goals for increased student enrollment. “Quite frankly, Buck and I worked tirelessly to get significant donors to make a long-term commitment to St. Augustine. It was saving the school and creating a runway for the school to survive,” Schaefer said. O’Rielly was instrumental in developing the long-range funding plan in early 2010 that started with $750,000 for the 2011-12 school year. O’Rielly, president of O’Rielly Motor Co., has closely monitored desires of the Diocese of Tucson to convert the Regina Cleri Center into a high school since the mid-1990s – at which time he found the concept unfeasible. The high school idea went on the back shelf until it was resurrected as a less ambitious project after Bishop Gerald Kicanas’ arrival – but still one without funding stability. “I just got deeply involved. I decided this is what I was supposed to do,” said O’Rielly, for whom the school’s administration building is named. “I gave initially a gift of $1 million. The emphasis
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is on initial.” O’Rielly would not discuss his largesse beyond the first million. St. Augustine will celebrate its 10th anniversary in August 2013. The school occupies the shell of the Regina Cleri Center, which was built on the far eastside in 1955-56 as a Diocesan seminary that closed in 1975. Since then, the center has had varying uses as a religious retreat for retired priests, the Diocese library, other religious congregations worshiped there, and the Diocese of Tucson had some of its administrative offices there before the Bishop Moreno Pastoral Center downtown became Diocese headquarters in 2002. A seminary does not quite bear the features of a modern high school. A $3.5 million capital campaign five years ago allowed St. Augustine to build a gym for its bountiful sports program. Another $1 million capital campaign will be launched in 2013 to add a theater and double the classroom space to accommodate the projected growth to 300 students in the next six years. “We are now growing exponentially. We need to expand the facility. Within the next 18 months, we need to create considerable new space,” Schaefer said. “The runway is paved now, the school
has a strategic plan in place, stability has been created, and we are confident that St. Augustine will be able to provide the educational and spiritual space true to Sister Lauren Moss’s original vision.” Fortunately, the physical space already exists. The current classrooms fill only the ground level of the two-story dormitory structure. Expansion will involve building out the second story, Keller said. Schaefer and O’Rielly believe Keller and Cuffari are just as vital as financial miracles to making St. Augustine successful. “What really sets us apart from any school in Tucson is a sense of community. We have 143 students. I don’t think a single one goes more than two days without the principal saying hello and knowing each one by name,” Schaefer said. O’Rielly added, “The thing that’s important for me, I think a community of 1 million could use another good Catholic high school to provide a good values orientation. How are you going to get along in life if you don’t have a good values system?”
Biz
Winter 2013 > > > BizTucson 173
CCIM leadership from left – Brandon Rodgers, PICOR Commercial; Gary Andros, Andros Commercial Properties; David Blanchette, CBRE; Howard Kong, Newmark Grubb Knight Frank, and James Robertson, Realty Executives Tucson Elite.
PHOTO: KRIS HANNING
BizCOMMERCIAL
Forecasting the Future in Commercial Real Estate By Sheryl Kornman The Southern Arizona Chapter of CCIM means business, said 2012 President Howard Kong, director and managing broker at Newmark Grubb Knight Frank in Tucson. CCIM stands for Certified Commercial Investment Member. Doing good business in a struggling commercial real estate market is a challenge, one that requires fortitude and confidence, he said. Attempting to forecast the future – especially in real estate – needs a team approach. Every year the chapter presents the CCIM Commercial Real Estate Market Forecast Competition. Top market specialists will forecast the commercial real estate market for 2013 at the 22nd annual event on Feb. 12 at the Marriott Tucson University Park, 800 E. Second St. Kong said panelists, including active commercial real estate brokers and financing professionals, will talk about projected growth figures, where year-end vacancy rates will be, where the market is heading and the general health of the Tucson real estate market. Participants will take part in a Q&A 174 BizTucson < < < Winter 2013
as they disclose their predictions in the areas of retail, office, industrial, multifamily, land and finance. Attendees will be able to meet and talk with the panelists and “leave with working knowledge of current market conditions and insight into emerging opportunities,” he said. The event is open to the business community, academia, government and others. The Southern Arizona chapter is one of 56 local CCIM chapters nationwide. “We provide some information that is beneficial to help people make money” and identify the top deals in leasing and sales, Kong said. In addition to the annual event, members can enhance their ability to find opportunities and make a deal by mixing with bankers, engineers, appraisers, title experts and others at monthly luncheons. James Robertson, 2012 secretary of the Southern Arizona chapter, said he wants to make sure “our community knows we are the global standard.” “Part of the reason for this conference is to say, folks, we’re here. We want your business. We want to be the place
you go for answers to your questions. We want to be the people who can guide you through, who stick with you until it’s done.” Robertson said CCIM members get to know each other’s character and recommend each other to peers and friends. The local chapter of approximately 150 members is a collegial, skilled and engaged alliance – “a sorority and fraternity” – of men and women who share information and tips, helping to move the commercial real estate market forward, Robertson said. His CCIM certification gave him the confidence a few years ago to take on a bank in a complex deficiency sale and work with lenders to satisfy his client. The Chicago-based CCIM Institute confers a Certified Commercial Investment Member designation through online learning and testing. That designation is a calling card to other professionals, Robertson said. Local member and CCIM-certified Terry Lavery, associate broker at Tucson Realty & Trust, said CCIM designees are in the top producers among world real estate professionals. There www.BizTucson.com
are more than 9,000 CCIMs in more than 1,000 markets, with some 7,000 individuals now seeking CCIM status, he said. Business sponsors of the 2013 CCIM event are Wells Fargo (platinum level), National Bank of Arizona (gold level), and Alliance Bank of Arizona, BeachFleischman, Bank of the West, Bank of Tucson, CoStar, Cox Communications, Epstein Construction, First American, Landmark Title Assurance Agency, Red Point Development, Sage Tax Service, Title Security, Trend Report and Tucson CREW (all silver). In its third year of honoring local legends in commercial real estate, the local chapter will name Peter Herder, chairman of The Herder Companies, and Louise Foucar Marshall its 2013 Real Estate Legends. Herder‘s career in residential and commercial real estate in Tucson has been active for more than 30 years. He built more than 1,500 homes in the Catalina Foothills. He’s a threetime president of Southern Arizona Homebuilders Association, has been an advisor to the Arizona Department
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of Housing and a land developer and building consultant in several states. Marshall, who died in Tucson in 1956 at age 92, bought land and developed Tucson’s first suburban shopping center at what is now Main Gate at University Boulevard and Park Avenue. The charitable Marshall Foundation she created with some of her profits from her commercial real estate empire had more than $30 million in assets several years ago. It funds millions in college scholarships and nonprofit organizations. Marshall came to Tucson in 1898, attended the University of Arizona, later taught there, and bought a parcel of vacant land near the main gate and started building. CCIM Southern Arizona’s inaugural legends in 2011 were Don Diamond, Roy P. Drachman, Bill Estes, Chuck Pettis and Sonny Solot. In 2012 the legends were the Roy Long family and Long Realty Companies; George H. Amos Sr. and Jr., residential and commercial builders; and Simon Kivel and family, developers of El Con Mall, the first enclosed shopping mall in Southern Arizona.
Biz
22ND ANNUAL CCIM FORECAST COMPETITION & LOCAL LEGENDS PRESENTED BY CCIM Southern Arizona Chapter Feb. 12, 1:30 to 6:30 p.m. Marriott Tucson University Park Tickets ordered by Feb. 1 $95 for CCIM members $115 for nonmembers Table of 10, $950 Register and pay online at www. tucsonrealtors.org. Tickets day of event – $125
Keynote Speaker: Fletcher J. McCusker Chairman Rio Nuevo Board
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Photo: BalfourWalker.com
BizVISION
Mike Holmes, Executive Director, Imagine Greater Tucson Keri Silvyn, Founder, Imagine Greater Tucson
Imagine Greater Tucson at Population 2 Million By Teya Vitu Tucson 2013 is at a crossroads. Over the past 120 years or so, we have grown to 1 million people pretty much in sprawl fashion – build, build, build, keep it low, spread it wide, march to the mountains in all four directions. The Tucson region is expected to double to 2 million in coming decades. Will we just gobble up another 300 square miles of pristine desert in random mass development and create onehour commutes for the second million? Or will Tucson buck the nationwide late-20th-century megasprawl trend? Imagine Greater Tucson’s newly unveiled regional vision presents the toolbox to build toward a Tucson 2050 – based on extensive community input and, conversely, enthusiastic government buy-in. It’s all about the people’s shared values and how to employ these values to assemble a more compact future footprint. The vision proposes a future of mixed-use urban centers of various sizes – larger regional centers, smaller town centers and yet smaller neighborhood centers. Translation: Places where people can live-work-play within walking distance – something that is a given in older cities and pretty much unheard of in post176 BizTucson < < < Winter 2013
World War II suburbia. These centers, plus improved neighborhood planning, transportation corridors and dedicated employment areas are the pillars of a vision that strives to allow a doubling of the Tucson’s region population while claiming at most 100 square miles of desert beyond the current metropolis. But how should the regional governments, developers and people go about building the “preferred future scenario?” The IGT vision’s basic mantra is to build a future based on the shared regional values of the people who live here. Of the 4,500 people who shared their values of what makes Tucson what it is, IGT distilled their input to 60 individual values organized into nine categories – accessibility, educational excellence, environmental integrity, good governance, health communities, higher education, prosperity, quality neighborhoods and regional identity. “What people want are choices,” said Keri Silvyn, a land-use and zoning attorney who launched Imagine Greater Tucson, the first effort to really put on paper what many people in Tucson would like to see. “People want change and people want choices.” Silvyn acknowledges misconceptions
about IGT and its vision are rampant. Denser development is definitely its hallmark, but the vision in no way rules out single-family homes. “There are people who want to be living on an acre of land,” Silvyn said. “In our current context, what is missing is what young people want. It’s the ability to live some place and not have to own a car, a creative environment. “We know what we need to do and we need to take the step to move it forward. We are working with the regional jurisdictions, developers, neighborhoods to create these spaces, balancing all of those interests.” Imagine Greater Tucson is a nonprofit organization supporting a community-driven effort to develop and support a vision for greater Tucson. The vision is a long-term document – but all journeys start with the first step. “The zones and codes need to be changed to allow for and promote what we spell out in the vision,” said Mike Holmes, IGT’s executive director. “We want to change the codes to enable and encourage walkable downtown and urban centers, and mixed-use centers where you can shop and live and play in the same place. We want zones and codes – so that developers can build it.” The City of Tucson and Pima Counwww.BizTucson.com
ty are in the thick of updating their general and comprehensive plans. And Pima Association of Governments, the region’s primary transportation planning entity, is adopting a long-range plan in the coming year. All three entities have collaborated closely with IGT in the vision process. PAG provided $700,000 for the twoyear IGT vision process and now another $200,000 for a study. “Ultimately, I would hope this would integrate our land use and transportation planning,” said Cherie Campbell, PAG’s planning director and an IGT board member. “That has never been a focus. They impact each other. It will help us plan more intelligently.” PAG’s plan could lay a transportation template tailored toward IGT vision elements. “The vision will provide insight on whether there are projects that we have not even considered that should be thrown into the mix,” Campbell said. Final draft policies for Plan Tucson, the City of Tucson’s new general plan, go to the Tucson Planning Commission in December 2012 and will be bound for voter approval in November 2013. The Imagine Greater Tucson process played into drafting Plan Tucson. “How large a role it plays will be a matter for the mayor and council, the planning commission and members of the community,” said Albert Elias, assistant city manager and a longtime city planner. “If you look at IGT, a lot of the vision is about infill. That aligns with one of the key visions of the City of Tucson. Where we should do infill is a major issue for the city.” Pima County’s Comprehensive Plan update next year likely will address Holmes’ zoning and codes concerns that are stifling denser development. “Our current plan, and implementing zoning code and design manuals, probably create more barriers than opportunities to foster these desires,” Pima County Planning Director Arlan Colton wrote in Trend Report. Colton also is an IGT board member. “The plan can adopt policy to guide future changes to those codes and manuals to enable more creative development opportunities.” Tucson is notorious for plans that go nowhere. Will the Imagine Greater continued on page 178 >>> www.BizTucson.com
4 Building Blocks for the Vision The Imagine Greater Tucson vision process determined that planning a more contained future will rely on four building blocks – urban centers, neighborhoods, transportation corridors and employment areas. Moving forward in this new direction will require the populace to accept drastic change in future development concepts. Like American politics, Tucsonans are split about change. Many thousands who took part in Imagine Greater Tucson’s vision process want change and choices. “I was surprised, but shouldn’t have been, about the number of people who are so phenomenally terrified by any change,” ITG founder Keri Silvyn said. “People have to become convinced that the change will be beneficial to them.” Urban Centers The IGT vision prescribes regional, town and neighborhood centers to achieve more density with office, commercial and residential within walking distance. Regional centers are reflected by the downtown concept, and the vision envisions such centers in Marana, Sahuarita, perhaps on South Houghton Road and elsewhere. Town centers would create mini-downtowns throughout suburbia with mixed uses in buildings two to four stories in height. Neighborhood centers would provide public spaces, pedestrian amenities and shopping in one to three story buildings. Traditional mixed-use generally follows the model of retail on street level and/or offices and residential above that. Silvyn describes that as vertical mixed use but she insists density can be achieved without blocking the mountain views. “Horizontal mixed use may be more important in our context,” Silvyn said. “It doesn’t have to be retail-office-residential vertical.” Neighborhoods The IGT vision recognizes that not everybody will want to live in multi-use centers, that the compact, traditional and rural neighborhoods we have today will remain the primary residential player. “The idea is to create a neighborhood where everything is easily accessible,” Silvyn said. “The life supports you need to have need to be close to where you live.” The Historic Village with Rincon Market at Fifth Street and Tucson Boulevard is an old-school example. Mike Holmes, IGT’s executive director, again invoked zoning and codes in order to incorporate business elements into
neighborhoods. “You have to be able to legally build those things,” Holmes said Transportation Corridors The IGT vision document states: “We will redefine our roadways from being largely oriented towards automobiles to embracing forms that enable the variety of transportation choices we want.” Also: “IGT’s findings from throughout the public process did not indicate desire for expansion of the region’s freeway system, at least as to new freeways.” Imagine Greater Tucson received a $200,000 grant from the Pima Association of Governments to create a transportation study by the end of 2013 that will support the vision. The study will be used to update the PAG regional transportation plan. “Tucson planning has been haphazard at best. It’s been reactive rather than proactive,” Holmes said. “We have terrible east-west connectivity. We have not linked employment centers with places where people live. We need to be able to link where people live and work. And it needs to have an emphasis on mass transportation. It needs to be intermodal.” Employment Areas Efficient transit from work to home functions best with large employment centers. Tucson’s primary employment centers, by IGT’s definition, are the University of Arizona, Downtown, the UA Science and Tech Park, Davis-Monthan Air Force Base, Raytheon Missile Systems, Tucson International Airport and Innovation Park. Tucson already has one future employment center in the works that would be a hallmark for the IGT vision – the Tucson Tech Corridor, the 11-mile Interstate 10 corridor from Vail to South Tucson. UA Tech Park, Diamond Ventures and Port of Tucson are the big players in that corridor and they created the Tucson Tech Corridor, which stretches about two miles on each side of the freeway to touch upon Davis-Monthan and TIA. About 55 companies are now in the corridor but much of the freeway frontage is undeveloped. Corridor partners are building a cluster of companies in renewable energy, transportation and logistics, bioscience and life science, border technology, aerospace & defense. They are equally interested in supporting uses such as hotels, restaurants and residential. “They can build that into a master planned area to live work, play and learn,” Holmes said.
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BizVISION continued from page 177 Tucson vision be any different? “The other plans are phenomenal,” Silvyn said, but noted that they all were created by small groups of people. “They sat down, created a plan and handed it off. This vision is a plan created by 10,000 people in this region.” Meet Keri Silvyn Keri Lazarus Silvyn made her name in Tucson as a zoning and land-use attorney at the law firm of Lewis & Roca, which freed her up to dedicate large amounts of time since 2008 to launch Imagine Greater Tucson. Since then, she and her father, Larry Lazarus opened their own law office – Lazarus, Silvyn & Brings – in July 2012. Why is Keri Silvyn the driving force behind pulling together six cities, two tribes and thousand of local residents to foster a long-term vision? “I was 100 percent convinced four years ago when most other people were not. “Everybody talked about it. Nobody was pulling it together,” Silvyn said. I didn’t create the passion. The passion was there. It just needed an organizer. I could see very clearly this was the answer. I knew it was the right thing at the right time. The dammit was if I didn’t do it nobody else was going to do it.” The genesis of IGT was the Tucson Regional Town Hall in 2007. “Diverse community leaders talked about what we need to do as a region,” Silvyn recalled. In 2008, the Urban Land Institute brought Robert Grow to Tucson. He’s the founder of Envision Utah who created a cottage industry to share the vision process with other cities. “He planted the vision but it was at a time where the economy was slowing down. It was at a time when people had the time to think about greater things. People were starting to connect the dots – live, work, transportation,” Silvyn said. Grow returned to Tucson in March 2009 after Silvyn wrote a white paper on how such a vision process would work on a local level. “I pulled together about 400 people and we sat down with Robert Grow,” Silvyn said. He asked “What are you most concerned about losing?” The answer was “our young people.” Leading a campaign to build a regional vision fits right into Silvyn’s day job as a zoning and land-use attorney, where she essentially does the exact same thing on a parcel-by-parcel basis. “Instead of the corner of First Avenue and Grant Road, now I’m doing the same thing across eastern Pima County with six jurisdictions and two tribes.” Silvyn said. “It’s entirely about community engagement and how to create a win-winwin on a case-to-case basis.” A graduate of the University of Arizona College of Law, Silvyn had no intention to follow her father as a zoning and land use attorney. “I swore I wouldn’t practice in the same area as my dad. I honestly fell into it,” she said. She joined the Gust Rosenfeld law firm, where she did insurance defense and then was assigned some land use work. “Lewis & Roca literally reached upstairs” and recruited her in 1999 to do land use and zoning litigation. High-profile assignments included serving as legal counsel for the Rio Nuevo Multipurpose Facilities District, and rep178 BizTucson < < < Winter 2013
www.BizTucson.com
resenting the Dallas Police & Fire Pension System in negotiations with the city for various city-owned properties. Silvyn was born in Skokie, Ill. but after 18 months, grew up in Phoenix. She headed down to Tucson to study at the UA, thinking she’d go back to Phoenix, but never did and now it’s 23 years later. “I’ve now lived more than half my life in Tucson,” Silvyn said. Meet Mike Holmes Imagine Greater Tucson uses the catch phrase “talk, think, act” to describe the process of creating and implementing a vision. Mike Holmes became executive director of IGT on Oct. 1, 2012, three days after the vision was unveiled to the public – that is, at the very beginning of the “act” phase. Holmes brings a background of active Army and National Guard service as well as civilian contractor work at Fort Huachuca. In Tucson, he recently made his mark as executive director of the Pima County Sports & Tourism Authority, a post he continues to hold on a part-time basis as he starts implementing IGT’s vision. He recites his professional forté: “Change the way people act by the way they think. It’s about creating an environment where people want to make things happen.” Holmes was born in Ocala, Fla., but was sent off to military school at age 13, ultimately graduating in Harlingen, Texas. He went through the Reserve Officers’ Training Corps at the University of Texas and was commissioned as an Army lieutenant upon graduation. “I got married, commissioned and graduated in the same week,” Holmes said. His first active Army stint was from 1987 to 1992 and he’s served in the National Guard ever since, mostly in the realm of military intelligence. Holmes was recalled to active duty from 2001 to 2006 to serve in Iraq and Kosovo, and once again in 2009 and 2010 for duty in Afghanistan as a lieutenant colonel in information operations. His time in Kosovo gave Holmes precious insight to implement IGT’s vision. “When I went to Kosovo in 2004 and neighbors killed each other for no other reason than religious differences – that gave me a real appreciation that you should support something that’s common – instead of looking for the differences that divide you.” Between those two active stints, Holmes arrived in Southern Arizona as a civilian trainer at Fort Huachuca. He has lived in Vail while commuting to Sierra Vista and now working in Tucson. “If you want one thing that brought me to IGT – it is a movement. It came from the people,” Holmes said. “I met Keri exactly a year ago. I met her at a forum at Jewish Family & Service. She came and gave a talk about the Sun Corridor. When I became executive director at Pima County Sports (in February 2012), she was the first person I called. Within a month I was volunteering at IGT. When I learned the 60 shared values were the basis of the vision – that really hooked me.”
Biz www.BizTucson.com
Winter 2013 > > > BizTucson 179
Photo: BalfourWalker.com
BizEDUCATION
Catalina Foothills School District Foundation board members from left – Secretary Lyssa Holmes, Peter Pritz, Victoria Capin, VP Paul Schwyhart, Treasurer Jan Gutbub, President Kris Tvedt and Patricia McCabe.
Love Our Schools Raises Funds for Education By Sheryl Kornman Decades before deep budget cuts became the norm in education, parents of students attending Catalina Foothills School District 16 created a nonprofit foundation to raise funds to help sustain excellence in public education. That was 30 years ago. Today a key focus of the foundation is to raise money to fund teacher positions to lower class size and help improve the quality of children’s education. The district includes nine schools – one pre-kindergarten, four elementary schools, two middle schools and one high school. Donors include parents, residents and businesses that support local education. The foundation works with administrators and school-based faculty/ family groups to determine what and where to fund. In January, for the 14th year, the Catalina Foothills School District Foundation will host its annual fundraising gala – Love Our Schools – to raise money to enrich the children’s academic experience. The Jan. 25 event also honors the outstanding contributions of the district’s teachers for their leadership skills and achievement. The Teachers of the Year will be announced at the 6 p.m. event at Loews Ventana Canyon Resort. The gala includes dinner, casino fun, music and dancing. Among the prizes for the evening are a wine tasting for 20 at Total Wine, dinner for six with former University of Arizona Coach Lute Olson at Wildflower, and a wine-andcheese party at Ventana Canyon Resort for 10. Sponsors of Love Our Schools 180 BizTucson < < < Winter 2013
include Simply Bits, Golden Brush and Andrew Rosen Orthodontics. Media sponsor is BizTucson magazine. “In times of shrinking state budgets, the foundation focuses on raising critical resources for teaching positions and other district-wide academic programs, resulting in higher teacher and program educational excellence,” according to CFSD parents Laura Shaw and Nanette Pageau, who serve on the foundation’s board of directors. District Superintendent Mary Kamerzell said the foundation has helped very young learners by providing iPads as a learning tool. At the high school, students can study in a four-year engineering program. The media program gives students the equipment they need for cable video and other projects. Theatre students can learn to work a soundboard, providing technical assistance during live theater productions, she said. Peter Printz is a foundation board member and wealth-management fi-
14TH ANNUAL LOVE OUR SCHOOLS GALA
Presented by Catalina Foothills School District Foundation Friday, Jan. 25, 6 p.m. Loews Ventana Canyon Resort Tickets: $125 per person, $1,250 for table of 10 Purchase online at www.cfsdfoundation.org
nancial advisor with two young children at Sunrise Elementary School. Printz said, “With the defeat of Prop. 204, our fundraising efforts are more important than ever to ensure the students will continue to attend schools with a superior rating. “I have a son in kindergarten and a daughter in third grade. Both have enjoyed after-school activities, which have included golf, math club and martial arts. As part of the regular curriculum they also receive instruction in Spanish, art and music, which contribute to a well-rounded educational experience.” Lyssa Holmes, secretary of the foundation board, said assuring her children “receive an outstanding education is one of my highest priorities.” She believes parent and community participation are “key elements to the success of all schools, especially public ones.” Holmes said one of her children receives special education services at Manzanita Elementary School and she is “impressed daily with what my daughter’s teachers, aides and therapists are able to accomplish even in these times of deep budget cuts. “I know that my support through donated time and money will have a direct impact on the quality of teachers and aides who teach my children,” Holmes said. “Budget cuts have had a direct negative effect on class/teacher ratios, as well as the staffing of aides and special teachers in the district. I want to do what I can about this and improve this situation. That is what I am committed to doing while serving on the foundation board.” Biz www.BizTucson.com
BizAWARDS
15th Annual Copper Cactus Awards By Sheryl Kornman The Tucson Metro Chamber hosted the 15th annual Copper Cactus Awards for small local businesses in November, honoring 12 businesses and choosing one individual as business leader of the year. Wells Fargo created the competition in 1998 and in 2012 turned the lead role over to the chamber, which moved from host to presenting sponsor. Co-sponsors were Casino Del Sol Resort and Intuit. The awards recognize and celebrate local businesses for their community service, business growth and for being the best place to work. Each business was asked the same
questions during the selection process. Judges of the 2012 competition were Mark Dean of Intuit, Michael Dunne of Cox Communications, Sharon B. Foltz of Unisource Energy Services, Joe Higgins of Sports Buzz Haircuts and Quality of Life Medical and Research Center, Sherry Hoskinson of the McGuire Center for Entrepreneurship at the University of Arizona, Wendell Long of Casino del Sol Resort and Jill Malick of Wells Fargo. Four hundred local businesses were nominated for consideration and the winners were chosen from 50 finalists. Eighty-five per cent of businesses
in the Tucson area are classified small businesses, according to the chamber, whose mission is to promote a strong local economy that results in business growth, job creation and improved quality of life for everyone. To qualify for a Copper Cactus award, the business owner of each nominee must be engaged in managing the daily operation of the business most of the time. A new category was added for 2012 – the Nextrio Innovation Through Technology Award. To be considered, a company had to be technology led, locally owned and operated for profit.
BEST PLACES TO WORK
PHOTOS: KRIS HANNING
Winners of the 2012 Tucson Metro Chamber Copper Cactus Awards
Rob Stenson
1 to 30 employees Goodmans Interior Structures Goodmans is the largest office furniture dealer in the Southwest and one of the top three largest Herman Miller dealers in the world. The company offers a complete source of interior furnishings and related services for large and small businesses, hospitals, educational institutions and government agencies. The team works to design workspaces to improve productivity and create valufor stockholders, taxpayers, students and patients by decreasing expenses. The Company showcases style, humor, compassion, integrity and respect. GM Rob Stenson said, “We create amazing work for our clients.”
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Lance Newman
31 to 75 employees Rosemont Copper Rosemont aims to set a new standard for sustainable mining practices, consuming less than half the water of traditional mines and reclaiming the site from the start of operations, as permanent open space. Lance Newman, Rosemont’s VP for market development, said the copper mining company will bring 2,100 jobs to Southern Arizona once its mining site near Green Valley begins operation. The project will add $3 billion in personal income and $404 million in local taxes to the economy, he said.
Buck O’Rielly
76 to 250 employees O’Rielly Chevrolet Since 1924, the auto dealer has employed friendly people to provide Southern Arizona drivers with value and an enjoyable owner experience. O’Rielly sells new and used vehicles of almost any make and model and also provides parts and service. The company’s mission is to treat others as you wish to be treated. R.B. “Buck” O’Rielly, who stepped back from the business four years ago, said it has three generations of employees on staff and those employees “are the tradition to drive us forward.” He praised Rob Draper, who took over the business four years ago, for being a second-generation Eagle Scout and using a lot of empathy and listening skills. “Nobody ever suggested it was the best place to work in 1958,” back when his dad was growing the company. Buck O’Rielly said. Winter 2013 > > > BizTucson 181
PHOTOS: KRIS HANNING
BUSINESS GROWTH
BizAWARDS
Winners of the 2012 Tucson Metro Chamber Copper Cactus Awards
Bob Swift
1 to 30 employees TCI Wealth Advisors TCI Wealth Advisors is a fee-only independent wealth advisory firm whose advisors serve as fiduciaries to its clients, putting their interests first. The firm designs integrated solutions to help clients meet their goals based on their values, interests and desires. TCI Wealth Advisors bring together clients’ other professionals, including estate planning attorneys and CPAs, and consider many facets of a client’s financial picture. CEO Bob Swift founded the company in 1990. He mentors younger members of the firm to help them deliver excellent service to their clients.
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Vida Johnson
Lori Whitesell
31 to 75 employees Synergy HomeCare This nonmedical homecare company provides private-duty caregivers to adults and seniors in their homes. Services range from homemaking and companionship to compassionate end-of-life care. Nurses on staff provide medication management, coordinating with ordering physicians. The business is operated by two registered nurses, Vida Johnson and Lori Whitesell, who said their nursing background gives them “the insight other agencies don’t have. We know we make a difference,” they said.
Steve Tooker
76 to 250 employees Tattoo Manufacturing The world’s largest manufacturer of temporary tattoos employs 100 people, designing, manufacturing and selling tattoos in Tucson since 1989. Safe for children, all products exceed global safety standards. The company prints more than 7 million temporary tattoos a day, offering thousands of designs in hundreds of motifs – from athletics to religion to fantasy. Steve Tooker, president and CEO, said all products are manufactured in the United States. “We’re going to con tinue to be a part of the community,” he said as he accepted the Copper Cactus Award.
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COMMUNITY SERVICE
PHOTOS: KRIS HANNING
Winners of the 2012 Tucson Metro Chamber Copper Cactus Awards
Jonathan Landeen
1 to 30 employees Jonathan’s Cork For 18 years Jonathan Landeen’s fine dining restaurant has offered fish, beef and wild game along with a wine list that reflects the chef/owner’s knowledge of good wines. The family-owned restaurant has 26 employees and Landeen said they are his adopted family. Landeen also said he firmly believes in giving back to the community.
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Rick Kleiner
Tom Nieman
31 to 75 employees PICOR This independently owned, full-service commercial real estate company offers brokerage services, property management and consulting services for retail, industrial, office, medical, land and investment properties. Mike Hammond, president and managing shareholder, said the company is licensed to do business in Arizona and Sonora, Mexico and helps ease the way for Arizona investors and businesses who want to do business in Sonora. He said he was honored and gratified to be recognized.
Kimberly Clements
76 to 250 employees Golden Eagle Distributors The Tucson-based company has 225 employees and sells 450 different beers and beverages, including wine, craft beers, local beers and liquor. Three generations of the Clements family have worked in the company since it was created in 1974. It now has seven facilities throughout Arizona. President Kimberly Clements said she started in the family business at age 4, using a calculator in her father’s office. “We are so pleased and so honored” to be recognized, she said at the awards event.
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Mary Darling
1 to 30 employees Darling Environmental & Surveying This multi-disciplinary consulting firm specializes in 3-D laser scanning and modeling for a worldwide client base. It is a pioneer in state-of-the-art 3-D technologies. It can create measurable computer models of virtually anything. It creates virtual reality and animation for clients including Raytheon, National Geographic, NASA, General Dynamics and the University of Arizona. Mary Darling, the company owner, said it is also creating 3-D models for Las Vegas businesses. “At Darling, innovation is our middle name.” She thanked her team for its creativity, and said, “I know anything is possible with this team’s passion.”
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Michael Garippa
31 to 75 employees SynCardia Systems The company was created in 2001 by innovative heart surgeon Jack G. Copeland, interventional cardiologist Marvin J. Slepian and biomedical engineer Richard G. Smith, to commercialize the total artificial heart. It received FDA approval in 2004 and was approved for use in Canada in 2005. Michael Garippa led the company to its first year of profitability in 2011. He joined the SynCardia in July 2010 as president, became CEO in May 2011 and chairman in 2012. “Today, we compete globally,” he said. The total artificial heart has been used in 1,085 patients, he said, and 100 patients went home from the hospital with the device. “We’ve made a huge difference in the lives of these people.”
PHOTOS: KRIS HANNING
INNOVATION THROUGH TECHNOLOGY
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Winners of the 2012 Tucson Metro Chamber Copper Cactus Awards
Ryan George
76 to 250 employees simpleview Simpleview employs 110 people and started with a staff of four. It helps destination marketing organizations succeed in convention sales, tourism marketing and day-to-day operations. It offers system platforms for customer relationship and content management, dynamic websites and interactive marketing. It serves more than 200 clients domestically and internationally. Founder Ryan George said he’s a native Tucsonan and always will be a Tucsonan at heart, even though he travels the globe for simpleview. “I started the business with a $16,000 loan from my father, and was able to pay him back in two months,” he said. Optimistic about Tucson’s future, George said, “Tucson’s best days are ahead.”
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BizBRIEFS
Up with People Founder J. Blanton Belk and CEO Alain Thiry with Mayor Jonathan Rothschild and Bill Holmes.
Up With People Opens Tucson Office Up with People opened a satellite office in Tucson, where the international performing organization was founded in 1965 by J. Blanton Belk.. The group moved its headquarters to Denver in 1990. “We are so excited to be back in Tucson. The community and the people were a huge part of our past and we want them to be a part of our future,” said Bill Holmes, senior consultant for Up with People and an alumnus of the nonprofit whose goal is to bring the world together through service and music.
The University of Arizona library already maintains Up with People’s history of promoting intercultural understanding. “Our hope is that these archives will inspire more social and peace movements in the world,” said Carla J. Stoffle, Dean of University Libraries and the Center for Creative Photography. The UA Center for Latin American Studies also helped Up with People’s subsidiary Viva la Gente form a new partnership with Cuba’s Ministry of Culture. In June Up with People will take its first cast to Cuba.
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“This is a monumental milestone and will provide us with a significant opportunity to build bridges of understanding between cultures – which has been our mission for 47 years,” said Alain L. Thiry, Up with People’s CEO and president. Five young adults from Cuba have joined the January 2013 cast. Up with People’s alumni network includes more than 21,000 men and women from 102 countries around the world.
Biz
FC Tucson Renews Partnership with Chapman Automotive By Stephanie Collins
FC Tucson, which brings competitive soccer to Tucson, has renewed its partnership with Chapman Automotive. The partnership was forged prior to the 2012 Desert Diamond Cup. FC Tucson Chief Business Officer Chris Keeney said that it would be difficult to find a better partner than the car dealership. “Their spirit and enthusiasm has been simply fantastic and they have played a critical role in demonstrating the quality of Tucson to the teams and fan bases that we are attracting to our community,’’ Keeney said. Chapman General Manager Neb Yonas said, “Chapman Automotive has been a proud sponsor and supporter of soccer in Tucson for years. We encourage the growth of the grassroots effort here to make soccer a more integral part of Tucson’s athletic scene. We look forward to standing by FC Tucson as the sport and MLS involvement grows here in Tucson and Southern Arizona.” Established in 2010, FC Tucson is committed to bringing competitive soccer to Tucson. FC Tucson owns FC Tucson Soccer, Tucson’s top-level soccer team and the FC Tucson Desert Diamond Cup, a Major League Soccer pre-season tournament. Chapman has long roots in Arizona, with the first dealership opening in Chandler in 1966. Biz Winter 2013 > > > BizTucson 185
BizTOOLKIT
You’ve Got E-Mail… and OOPS, a Contract, Too By John Hinderaker and Dan Waite
Business agreements have come a long way from the time when we needed all parties present, pens in hands, plus notary public with official seal standing by. The Uniform Electronic Transactions Act of 1999 allows a binding contract to be created through email without a physical signature. Specifically, the act of sending the email can serve as the signature. No one would give up the convenience of business today, where electronic documents allow companies from opposite ends of the earth to seal a deal and get on with their day. Yet that convenience comes with a price – and that price can be huge with the simple click of the send button. Under the UETA, faxes, texting and social media sites could instigate a binding contract. An innocuous exchange between you (or your employee) and a client could be considered legally binding.
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John Hinderaker
Dan Waite
One company recently paid for an employee’s casual statement “We got a deal then,” with more than $1 million in settlements and legal fees. What to do then? Follow the 5 R’s.
4. Relax. Never hurry when sending email about contracts, payments or terms. Treat each email as though it’s a printed contract and you have a pen in hand.
1. Refrain from finality. Unless you intend to create a contract, avoid wording that sounds final such as “deal,” “agreed” or “I accept.”
5. Representation. If you fear you’ve created a contract via email, talk to a lawyer. A competent attorney will help determine if you have anything to worry about – as well as help you to create a corrective email that could keep you out of legal hot water.
2. Respond to finality. If another party makes statements that sound like a contract exists – “Glad we could reach agreement” – and you disagree, correct the misperception in writing immediately. 3. Require permission. If you’re a negotiator – but not the final decision maker – always be clear that what you say is subject to approval. Say “Whatever we agree to will have to be approved by management to be binding,” or “We’ll need to finalize our agreement with a contract prepared by the lawyers.”
As more and more business communications are done electronically, a greater number of unintended contracts will likely be alleged. Share this information with your team – and remember to follow the 5 R’s. John Hinderaker is a partner in Lewis and Roca’s Tucson office, and Dan Waite is managing partner of the firm’s Las Vegas office.
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