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BizLETTER Saluting Our Five-Star Industry
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Winter 2014
Volume 5 No. 4
Publisher & Owner
Steven E. Rosenberg Brent G. Mathis
Creative Director Photo: Steven Meckler
Historically, Arizona’s economy relied on the five Cs of copper, cattle, cotton, citrus and climate. Over the past century, however, another sector has emerged as a key driver. This state boasts an industry that defends our nation’s freedom while pumping $15.3 billion annually into our economy. The military and defense assets of Southern Arizona are a powerful economic engine. Tucson ranks No. 7 in U.S. military spending in the nation. Freelance journalist David Pittman provides a high-level view of this region’s five-star industry. The five “stars” are: Davis-Monthan Air Force Base, Fort Huachuca U.S. Army Intelligence Center, 162nd Fighter Wing of the Arizona Air National Guard at Tucson International Airport, U.S. Army National Guard Silverbell Army Heliport in Marana and the U.S. Army Yuma Proving Ground. These installations provide synergy to our region’s aerospace and defense sector, led by Raytheon Missile Systems. Romi Carrell Wittman reports on the defense contractors and the Yuma and Marana bases. Proposed budget cuts mandated by sequestration – $1.2 trillion in U.S. defense and domestic spending reductions over the next decade – threaten the industry, and could result in base closures. Business and community leaders are banding together to defend defense. Leading the charge are Tucson Metro Chamber, Southern Arizona Leadership Council, Tucson Regional Economic Opportunities, Tucson Association of Realtors, Southern Arizona Home Builders Association, Visit Tucson and Metropolitan Pima Alliance. Along with military support groups including the DM50, the Air Guardians and the Fort Huachuca 50, they have formed the Southern Arizona Defense Alliance, to protect military assets in the region. One priority is convincing the U.S. Air Force to assign the F-35 to the 162nd Fighter Wing. Ron Shoopman, president of SALC and a retired brigadier general, said the wing and DavisMonthan could be in jeopardy of being shut down without the F-35. But beyond the dollars, this issue of BizTucson is dedicated to the men and women of the U.S. military who have sacrificed to preserve our freedom. We honor those among us who contribute so much to our community. Among them is World War II navigator Art
Schaefer, whose new book, “In Like Flynn,” provides a compelling account of his 33 combat missions over Europe. In other reports, tourism treasures share the spotlight – with the $35 million renovation of The Westin La Paloma Resort & Spa, the new Sewailo Golf Club at Casino Del Sol Resort and the member-owned success of Ventana Canyon Golf & Racquet Club. Also featured is a report on TREO’s strategic initiatives to drive a new economic paradigm for Southern Arizona. The 19 CEOs in TREO’s Chairman’s Circle share insights on the year ahead. TREO’s Economic Blueprint – developed in 2007 as a roadmap to success – is being updated to fit the demands of the new economy. Mary Minor Davis provides a preview. Speaking of blueprints, construction icon and visionary entrepreneur Garry Brav and his BFL Construction team are the focus of a comprehensive report by Sheryl Kornman on the company’s four decades of success. Beyond major accomplishments in construction – including bioscience, healthcare, education and resorts – BFL’s family of companies is a diversified blend of enterprises poised for growth. The ventures range from streamlining the process for building homes four at a time to developing detached luxury rental homes and partnering to expand into other Sunbelt markets. Finally, Steve Rivera reports on the World Golf Championships – Accenture Match Play Championship at The Golf Club at Dove Mountain, with a global reach of 733 million homes. We must support this event and the volunteer efforts of the Tucson Conquistadores, who have netted $10.1 million in donations since Accenture launched eight years ago. Steven E. Rosenberg Publisher & Owner BizTucson
Contributing Editors
Gabrielle Fimbres Donna Kreutz
Contributing Technology Director
Mike Serres
Contributing Writers
Mary Minor Davis Pamela Doherty Gabrielle Fimbres Tara Kirkpatrick Sheryl Kornman Donna Kreutz Christy Krueger David B. Pittman Steve Rivera Monica Surfaro Spigelman Christie Street Eric Swedlund Valerie Vinyard Romi Carrell Wittman
Contributing Photographers Carter Allen
Kris Hanning Brent G. Mathis Chris Mooney Tom Spitz Balfour Walker
Member:
Arizona Builders’ Alliance Tucson Advertising Federation Tucson Hispanic Chamber of Commerce Tucson Metro Chamber Tucson Regional Economic Opportunities (TREO) Visit Tucson
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 © 2014 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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Please send address changes to: BizTucson, 4729 East Sunrise Drive, #505 Tucson, AZ 85718.
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BizCONTENTS
FEATURES
WINTER 2014 VOLUME 5 NO. 4
COVER STORY:
BizDEFENSE 130 Region’s Five-Star Industry: Military & Defense Assets
BizTOURISM 150 Casino Del Sol’s Sewailo Golf Club Opens
133 $5 Billion in Local Defense Contracts 135 Davis-Monthan Air Force Base 140 Fort Huachuca U.S. Army Intelligence Center 142 U.S. Army National Guard Silverbell Army Heliport 143 U.S. Army Yuma Proving Ground
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146 162nd Fighter Wing of the Air National Guard
Winter 2014
BizEDUCATION Pima Community College Talent Pipeline
BizMEDIA Broadcast Career: Take 2 BizENTREPRENEUR Key to Success: Empower Employees
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BizLETTER From the Publisher
BizSPORTS World Golf Championship – Accenture Match Play
BizTECHNOLOGY 242 App Savvy: Long Realty Goes Mobil
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BizHERO Art Schaefer: “In Like Flynn”
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BizCOMMUNITY TEP’s Community Action Team
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BizPHILANTHROPY Gootter Grand Slam Honorees
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BizSALES Sales Guru Jeffrey Gitomer
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BizHEALTHCARE Rx For Excellence: TMC Invests $250 million
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BizTOURISM Ventana Canyon Golf & Racquet Club
54 58
BizMILESTONE Robert Sarver’s Banking Vision
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BizMILESTONE Law Legacy of Evo DeConcini
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BizCOMMERCIAL CCIM Industry Forecast Preview
DEPARTMENTS
BizBENEFIT Art Treasures Seldom Seen
BizPHILANTHROPY 148 Count Raises $12 Million for Aviation Museum
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BizHONORS Tucson Man of the Year Tucson Woman of the Year Tucson Founders Award
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BizTOURISM 126 $35 Million Makeover: The Westin La Paloma
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222 224 226 228 230
BizMILESTONE Junior League: 80 Years of Women’s Leadership
BizHONORS 245 Copper Cactus Awards BizGOVERNMENT 250 State of Government 2014: Mayor & Governor Events 65 BizSPECIAL REPORT Tucson Regional Economic Opportunities Driving A New Economic Paradigm
70 73 79 80 96 114
Bold Strategies For A New Economy TREO Leadership Team Q & As Laser Focus on Talent Gap TREO Chairman’s Circle Q & As Board of Directors Connecting to Global Markets
153 BizSPECIAL REPORT Seizing Opportunity BFL Construction Diversifies & Thrives 160 176 184 189 193 196 200 206 210 214
BFL Construction 40-Year Commitment to Excellence Project Photo Gallery Tenant Improvements Streamlined Building Process Affordable Housing Solutions Luxurious Gated Homes: No Mortgage Sunny Future for Luxury Rental Homes Second Generation Home Builder Trusted Quarterback Wealth Advisors Building Community
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BizSPORTS
Above – The Golf Club at Dove Mountain, eighth green (Photo by Stan Badz/ PGA TOUR) Left – Tiger Woods plays his tee shot on the 12th hole during the second round of World Golf Championships – Accenture Match Play Championship, 2009 (Photo by Stuart Franklin/Getty Images) Right – Ernie Els hits from the first tee box during the third round of the World Golf Championships – Accenture Match Play Championship at the The Golf Club at Dove Mountain, 2009 (Photo by Stan Badz/PGA TOUR)
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Golf Gods Bless Tucson
Is There More to Come? By Steve Rivera
Paul Weitman
Neal Weitman
Weitman Double Take By Steve Rivera
It was Feb. 26, 2006 – the day PGA Biggest Names in Golf officials announced that the World Golf Goodman said “it took a little time for Championships – Accenture Match Play fans to realize the differences in the field Championship would move from La Cosstrength and the format of the event – but ta, Calif., to Tucson. we’ve all done a good job adapting to the The roar could be heard throughchanges. I think the fans now know that out Southern Arizona. It like was Tiger this is a very special, elite tournament Woods nailing a clutch 10-foot putt at the with the biggest names in golf each and Masters. every year.” The top 64 players in the golf world The Golf Club at Dove Mountain prowould be coming to the Tucson area to vides a spectacular setting for a golf tourshow – and strut – their stuff. From long nament with the backdrop of the saguaros drives to short putts, and the Santa Catalina Tucson would be the Mountains, all the more place to see the world’s so when the snow comes best work their magic – and it has. from tee to green. It’s perfect setting for It would be a boon a Tiger. And the No. for Tucson tourism, 1 player in the world the greater local comhasn’t disappointed, munity and the Tucson winning the second year Conquistadores, the orit was held here and ganization that would playing every year with run the event. After all, the exception of 2010, when it comes to golf, when he was recovering the Conquistadores from knee surgery. have been synonymous We will see what will with the sport since happen to the tourna1966, serving as hosts ment beyond 2014, as well as marketing and when a new contract ticket agents. has to be signed to Clubhouse at The Golf Club The PGA saw what keep it in Tucson. Then at Dove Mountain was very apparent – again, it has had a (Photo by Stan Badz/PGA TOUR) Southern Arizona fans chance to leave before – love their golf. And they have come – rain and, well, it hasn’t. Who knows? Maybe or shine. And, well, snow too. it’ll stick around. “The fans, the volunteers, the media, “It’s most important for us to work our the Conquistadores and the corporate tails off to put together the very best event community all deeply care about this possible in 2014,” Goodman said. “We event,” said Gerald Goodman, the tourneed support from the fans, sponsors, volnament’s executive director. “When I go unteers and the community. If we can do out into the community in Tucson and the that, I think 2014 will be the best Accensurrounding areas, everyone wants to talk ture Match Play Championship we have golf with me. It’s great. There is such passeen so far.” sion for our sport.” continued on page 18 >>>
Neal Weitman never sought out to be president of the Tucson Conquistadores – but there he is in the top spot. Like father, like son. “It’s rewarding,” said Weitman, GM at Lexus of Tucson. “All of us in the group work for a living and have families. It’s all volunteer. I feel we do a lot of good for the community and it’s rewarding to give back money and see kids benefit. “It’s also rewarding because of the friendships you make in the community and within the Conquistadores. It’s work, but fun. We have a good group of guys. It’s a quality organization,” he added. In its more than 50 years of existence, the Conquistadores have donated more than $27 million to local charity organizations to help fund teams, projects and programs. For many youth teams and young players, it’s where dreams come true. Neal has a long history with the Conquistadores. He has been a member for nearly 10 years, and his father, Paul Weitman, was president from 1986 to 1987. “It wasn’t planned out that way,” the younger Weitman said. “I’m not the president because my dad was.” Instead, it’s his desire to help lead an organization that makes Tucson a stronger community through youth sports. “I feel good that my son is the president of the Conquistadores,” Paul Weitman said. Some of the fundamentals of the job haven’t changed – it’s about raising money and helping out, the elder Weitman said. Biz Winter 2014 > > > BizTucson 17
BizSPORTS continued from page 17 Every year, Tucson one ups itself. And Accenture and the PGA take notice.
Favorite Memories from the Links
PGA TOUR in Tucson Since 1945
By Steve Rivera “It was the year Tiger Woods went to a playoff (in 2008) and The Gallery Golf Club at Dove Mountain isn’t suited for galleries. He made a putt to tie the match after being down three with three to play. He made a putt at 18 to extend the match. “It was late in the day and just beautiful. I was helping with the marshals and crowd control. When we had to move to the No. 1 hole after being at 18 there was a huge crowd that Tiger brings with him. It was a crowd of chaos and bliss at the same time. “Controlling the crowd was amazing. It gave you the feel of a big-time golf event and the things you see at the British Open and these huge events. It was a memorable moment.” – Heath Bolin, 2014 Tournament Chairman, Tucson Conquistadores
“It had to be 2009 and all the First Tee kids were out there watching practice. There must have been 35 kids and we were walking down the 18th fairway. Tiger Woods was practicing on the other side. All the kids yelled, “Tiger.” He waved (he couldn’t stop because he was headed to talk to the media). “We then walked to the 17th green and Sergio Garcia was there with Adam Scott and Luke Donald. They were practicing. Scott and Donald signed a bunch of autographs and Sergio Garcia signed an autograph for every kid. Oh, my gosh – the kids will remember that.” – Judy McDermott, Executive Director, Tucson Conquistadores
“Just watching Tiger Woods practice is exciting. This is one of the most famous people in the world. I walked one year following Geoff Ogilvy and Steve Stricker, and any time you can watch people who are the best at what they do, it’s is amazing. Hey, if these shots aren’t five feet from the hole on a par three, they are mad. These guys are phenomenal. It’s a pleasure to watch them.” – Ed Honea, Mayor, Town of Marana
“One of the more compelling matches I’ve had a chance to see was between Hunter Mahan and Rory McIlroy (in 2012). Rory was No. 1 in the world and watching Hunter match him shot for shot, and seeing him overtake him was remarkable. Golf fans enjoyed watching that duel.” – Brent DeRaad, President & CEO, Visit Tucson
“I always take a moment during Wednesday’s opening round of the Accenture Match Play Championship to stop and take in the atmosphere at the first tee. It is one of the most underrated days on golf’s calendar, in my opinion. We have 64 of the world’s best, broken up into 32 matches going head to head. “I love the win-or-go-home feeling in the air that day, both at the beginning as players make their way to the opening tee or later in the day as matches start to conclude. It’s something that only happens at our event.” – Gerald Goodman, Executive Director, Accenture Match Play Championship
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“Tucson and Southern Arizona have long supported PGA TOUR events dating back to 1945 with the start of the Tucson Open,” said Peter Kent, VP of championship management business affairs at the PGA TOUR. “Through tournament changes and even a few snowstorms, the fans, volunteers, Conquistadores and corporate sponsors in Tucson have shown great support of the World Golf Championships – Accenture Match Play Championship,” he added. So, of course Tucson wants Accenture to stay. Always has and always will. “The one thing you can hang your hat on is that Tucson gets the best of the best when it comes to golf, having the top 64 players come here,” said Heath Bolin, 2014 tournament chairman for the Conquistadores. “Phoenix has the Cardinals and the NFL. They’ve had a World Series. They have the Suns and have had an All-Star game. “We have our No. 1 Cats. But when it comes to pro sports, the Accenture Match Play is something special. Phoenix doesn’t get the top 64. This is truly special and important to the community. It’s something we have to hold on to. We’ve had great support in the past and what people need to do is buy tickets.” Blessed With Eight Years
It’s been a great, wild ride from the moment they made the announcement they’d be coming to where the greens are smooth and the fairways are generous. “That’s the whole thing,” said Judy McDermott, executive director of the Tucson Conquistadores. “We thought we’d get them for four years and that would be it. We’ve been blessed to have them eight. “In our wildest dreams did we ever think we’d get Match Play because we were playing opposite them,” McDermott said. “First to land it and have it be extended and then extended again, we never thought that would happen. We’ve always done really well with the event. Whoever thought we’d have all these CEOs flying into Tucson to see the event? It’s been fantastic.” Of course, the Conquistadores, Tucson and everyone involved from that end would love for it to continue. “We’ve been good for Match Play and Accenture – and Match Play has been good to Tucson,” said Neal Weitman, president of the Tucson Conquistadores. “We’ve had great success the past eight years. “To have that quality of field here is great – and it would be equally as great to have the marriage extended. “We don’t know what the future holds, but we certainly hope that it can continue,” he added. continued on page 20 >>> www.BizTucson.com
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BizSPORTS
The tournament “generates millions and what that translates into is a lot of jobs. –
Ed Honea, Mayor Town of Marana
”
continued from page 18 Economic Boost of $80+ Million
When the PGA announced that Match Play was coming to Tucson back in 2006, speculation was that it would bring $80 million to $100 million to the local economy. And it’s done exactly that, with more than 300 businesses investing in Match Play through corporate hospitality and ticket programs. Before the Accenture Match Play came to town, tournament officials said the impact of the Chrysler Classic was just more than $13 million. Bob Walkup, who was Tucson mayor at the time, called the news of Match Play coming to town a “hallelujah moment.” Mayor Jonathan Rothschild calls it “a great economic boost to our region.” “Few other courses can offer such spectacular scenery, first-class accommodations and bright, sunny skies as we have here in Tucson,” Rothschild said. “I’ve personally enjoyed watching Tiger, Phil (Mickelson), Sergio (Garcia) and all the great golfers who come each year to compete in one of the Tour’s premier events. “This community welcomes the PGA TOUR with open arms. Local golfers are thrilled to have the opportunity to watch the best in the world come play their course. Local restaurants and businesses really roll out the red carpet for our golf and winter visitors. You can always count on a warm welcome in Tucson.” That counts for Marana as well, where The Golf Club at Dove Mountain is located. “The tournament generates millions and what that translates into is a lot of jobs,” said Marana Mayor Ed Honea. “That’s really important. What you can’t get is in the advertising. It’s in Golf Digest and broadcast everywhere. If you spent $10 million you couldn’t find that kind of advertising.” continued on page 22 >>> 20 BizTucson
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BizSPORTS continued from page 20 Broadcast on 86 Channels Worldwide
Figure that the event’s total global reach is massive. According to the PGA (drum roll, please): • 3.3 million unique users to PGATOUR.com went to the site for tournament information • More than 450 media members from 127 different outlets came to cover the event • 29.5 million domestic television viewers were reached over the fiveday event via the Golf Channel and NBC • More than 733 million homes were reached in 224 countries • The event was broadcast on 86 channels, 49 of which aired it live One of the viewers was Jan Lesher, who sat in on meetings in the early stages of negotiations while the PGA and Accenture were contemplating coming to Tucson. “One of the important promises Accenture made to the people of Arizona and Pima County was that the tournament would be shown in over 160 countries,” said Lesher, deputy county administrator at Pima County. “I wondered what the potential impact might be to tourism in our community.” She found out first hand on a trip to Ireland as the director of the Arizona Department of Commerce. There she “sat with a group of people on a frigid, rainy day watching the play unfold from a gorgeous, sunny golf course back home. The images were almost surreal and every person watching pledged to be in Arizona for the next tournament. You just can’t beat that kind of advertising.” Brent DeRaad just smiles. It’s also a reason why Visit Tucson invests in Match Play. DeRaad, president and CEO of Visit Tucson, said his organization is investing $50,000 this year and providing another $50,000 in advertising value in golf advertising and marketing materials. “As part of our relationship, the Accenture Match Play has secured television commercials for us on The Golf Channel in Chicago and Denver during the week of the event,” DeRaad said. “We view the Accenture Match Play as one of our best opportunities to generate international awareness about Tucson. continued on page 24 >>> 22 BizTucson
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BizSPORTS continued from page 22 “We focus our international efforts in Mexico, Canada and western Europe – since that is where we, the Arizona Office of Tourism and our counterparts in metro Phoenix have long marketed together,” he added. $10 Million for Local Charities
Weitman said the tournament is critical for the success of numerous nonprofits. And successful it is. Recently, Accenture and PGA officials announced the tournament generated more than $1.3 million in charity for the local community. That brings the total to more than $10.1 million since 2007. Goodman called the contributions “a cause for celebration.” Proceeds from the Accenture Match Play Championship benefit charities, including The First Tee of Tucson, Boys & Girls Clubs of Tucson, YMCA, Pima County Special Olympics and the newly built Sporting Chance Center, among others. Since 1962, the Tucson Conquistadores have contributed more than $27 million to local youth organizations. “Not only does it mean a boon for the economic impact of Tucson, but it’s how this organization has raised money for the past 50 years,” Weitman said. “It’s been through the golf business. We give more than $1 million each year. “For the charities to continue and to help those in the community – we want the tournament to continue. If it doesn’t, our funding gets cut short.”
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WORLD GOLF CHAMPIONSHIPS – ACCENTURE MATCH PLAY CHAMPIONSHIP Monday - Sunday, February 17 - 23 The Golf Club at Dove Mountain, Marana Defending Champion – Matt Kutcher, USA Purse – $8.75 million Champion – $1.5 million www.worldgolfchampionships.com/ accenture-match-play-championship (520) 571-0400
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Art Schaefer
PHOTO: CARTER ALLEN
Pictured in front of a B -17 exhibit at the Pima Air & Space Museum
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BizAVIATION
Navigating WWII Memories By David B. Pittman It happened more than 68 years ago, but Art Schaefer remembers the details as if it were yesterday. The 90-year-old Tucson author of “In Like Flynn” was 21 and serving as navigator aboard a B-17 bomber flying missions over Europe against Nazi Germany at the end of World War II. In writing his book of the bombing missions he flew for the U.S. Army’s 8th Air Force, Schaefer had help. He used the diary he kept all those years ago of every mission he ever flew – 27 combat missions and six food drops to starving civilians who were captives of the German occupation. “Each evening, after returning to my barracks, fit and thankful to be alive, and happy that the fear of having to ditch our plane in the North Sea was only temporary, I recorded the harrowing facts of the events of the day, to the best of my knowledge,” he wrote in the book’s prologue. “I did this so I would never, for the rest of my life, forget those events and the reasons why each was so important.” For years, the longtime mining executive and safety engineer didn’t speak of his wartime experiences. Like many World War II vets, he didn’t think of
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himself as a hero, but just one of 16.1 million Americans who crossed the ocean to do a job. And when that job was complete, these soldiers returned home to finish their educations, marry their sweethearts and build the United States into the greatest economic engine in history. These were the men Tom Brokaw aptly described as America’s “Greatest Generation.” So why, after so much time has passed, has the University of Arizona graduate conjured up old memories to write his first book? It was partly because of a close friend. John Davis, owner/operator of Arizona Lithographers, whose own late father was a B-17 pilot in World War II, urged Schaefer to write down his wartime memories as a legacy to his children and grandchildren. After Schaefer penned a few of his wartime experiences, he showed Davis, who was moved by Schaefer’s work and encouraged him to continue. “Reading Art’s recollections puts a humane and personal touch to the life and trials our servicemen who experienced flying daily from the relative safety of Britain,
over the English Channel into occupied territories, and finally into the heartland of the enemy,” wrote Davis in the book’s foreword. The cover of the book features a painting of an airborne “In Like Flynn.” It was painted by Schaefer’s wife, Mary, an accomplished artist who used old black-and-white photos and her husband’s memory in recreating the B-17. Schaefer was instrumental in the naming of the aircraft. “Being the navigator, I was the one person who knew where we were all the time. When we would fly over a town or a river, somebody in the crew would continued on page 28 >>>
Winter 2014 > > > BizTucson 27
BizAVIATION continued from page 27 often ask where we were,” Schaefer said. “Most of the time I would tell them. But now and then I was busy trying to navigate, so I would say, ‘Don’t worry, we’re in like Flynn. Everything is going to be OK.’ “That got to be kind of a joke with the crew. So anytime anyone would ask, ‘What’s that over there?’ or ‘Where are we?’ somebody would respond, ‘Don’t worry, we’re in like Flynn.’ ” Curiously, Schaefer first yearned to be a horseman, not a flyboy. “I began my military career in the horse cavalry ROTC at the University of Arizona,” he recalled. “Our class of advanced ROTC training was the last class to have horses.” In the book, Schaefer provide a birds-eye view of historically important aerial attacks and battles – such as the bombing missions that permitted Allied forces to move from France into Germany by crossing the Rhine River, the annihilation of Dresden, and Czechoslovakian aerial attacks clearing the way for an infantry onslaught led by U.S. General George Patton. “Crossing the Rhine was the largest airborne battle the world has ever seen – and will ever see,” Schaefer said during an interview at his home. “I think it was the most decisive battle of the war. It proved to be the beginning of the end for Nazi Germany.” The most chilling moments of the book come from descriptions of near-death experiences. One example was the recounting of a mission over southern Germany in which Schaefer was directly hit by a piece of flak – German antiaircraft projectiles that exploded into shrapnel after reaching a certain elevation. The shrapnel was feared by American airmen because it could, and often did, bring down entire airplanes. “While the clear weather improved our bombing accuracy, it also improved the German flak gunners’ accuracy and we caught some close ones. One B-17 in the group behind us blew up – the biggest pieces we could see falling were the engines. Everybody got hit a little. One close burst sent shrapnel through our nose, and a piece about the size of a nickel hit me in the chest. Fortunately, I always wore my big heavy flak suit when we were over our target and the flak didn’t go all the way through. I was knocked head-over-heels into the catwalk between the nose and the pilot’s compartment. I reattached my oxygen line and throat mike and continued navigating. I had a big bruise on my chest and was sore for a week. Otherwise, I was none the worse for this experience.” Schaefer also wrote about an incident 68 years after his military service that shows “the ghosts of war” are long lasting. He saw a clerk who was wearing a shirt with the name Swinefurt on it. “Swinefurt was the ball-bearing center for all of Germany and the 8th Air Force really wanted to knock it out. The Luftwaffe came up with all their might and our Air Force lost more than 60 B-17s on that one mission. Over 600 of our men were lost in a single day. Chills and goose bumps appeared on my arms and I had to stand quietly for a moment to regain my composure.”
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Schaefer’s book is available at the Pima Air & Space Museum gift shop. 28 BizTucson
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BizCOMMUNITY
Labors of Love
TEP Volunteers Donate 500,000 Hours By Steve Rivera For Georgia Hale, it was just another day off, moving cinder blocks and adding a fresh coat of paint to the Tucson Urban League. Hale, manager of financial accounting at Tucson Electric Power, is an employee volunteer, which makes her a member of the utility’s Community Action Team – or CAT. She and other TEP volunteers were at the Urban League at the crack of dawn, helping to make the Tucson nonprofit a brighter, better place. “It’s pretty amazing what people can accomplish once they have a common goal,” Hale said. Just about every weekend of the year, members of CAT – which recently celebrated its 20th anniversary – hit the streets of Tucson, cleaning up, fixing up and building, all to make Tucson a better place to live. In two decades, CAT volunteers have donated more than half a million hours to Tucson and Eastern Arizona causes. Last year, more than 35,000 TEP volunteer hours benefitted more than 400 nonprofits. “It’s critical that TEP has those folks on site to help,” said Hale, who is vice chair of the Tucson Urban League board. “There are so many organizations that need help and volunteers with expertise are critical for organizations to be able to continue to serve their clients on a daily basis.” Employees are encouraged to donate their time to the causes closest to their hearts. One CAT volunteer might choose to pound nails for Habitat for Humanity, another might serve on an agency’s board of directors.
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TEP volunteers – many from the ranks of the International Brotherhood of Electrical Workers 1116 – are truly volunteering, and are not paid for their community service. They say the payoff comes in helping the community to be safer and stronger. “When you have people getting together (to help), good things happen,” said Paul Bonavia, chairman and CEO of TEP, UNS Energy and UniSource Energy Services.
Spirit of TEP in Action Among the longtime programs supported by Tucson Electric Power’s Community Action Team: • Habitat for Humanity – Since 1996, TEP volunteers have worked with Habitat, including the first Building Freedom Day in 2002, celebrating the heroes of 9/11 and paying tribute to the victims. In 2007, volunteers led a beautification project, with 200 trees planted at the Corazon del Pueblo neighborhood, a Habitat for Humanity development of energy-efficient, low-income homes. The project was valued at $200,000 and was helped by $45,000 in grants lined up by TEP. • Community Food Bank – TEP helps through food drives and food box assembly and has donated nearly $500,000 in the past 20 years. • Tucson Nursery School – TEP volunteers have refurbished bathrooms, repaired the roof, built a playhouse, expanded the playground and installed trees, landscaping and irrigation at the school for children from low-income families.
It was his motto of the day when more than 150 TEP employees, their friends and family members volunteered their time to help with several local projects – including the one at the Tucson Urban League – during United Way of Tucson and Southern Arizona’s Days of Caring. “It’s amazing the work they have invested in this organization,” Debbi Embry, president and CEO of the Tucson Urban League, said of TEP’s CATs. “Whether it’s by donating money or giving of their time, it’s been great. TEP is a community partner and they value what nonprofits do here in Tucson,” Embry said. “We make an impact on people’s lives, and we need corporations to get more involved.” Volunteers painted the lobby and the waiting room, created a children’s play area, rehabbed bathrooms to be family friendly and planted landscaping and gardens at Urban League. “No way this would have been done without them,” Embry said. “It’s a blessing from heaven.” Indeed. CAT volunteer Debbie Cummings likened volunteering to going to church, “where it just makes you feel good.” “It’s rewarding,” said Cummings, who has volunteered for the last five years. Cummings and a dozen others recently helped with the construction of a Habitat for Humanity house, painting and upgrading. “I think I learn a lot from all this – I get as much as I give,” she said. That’s what TEP officials hope happens in what they call “a culture of caring.” continued on page 32 >>> www.BizTucson.com
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A sampling of TEPâ&#x20AC;&#x2122;s community involvement â&#x20AC;&#x201C; 1. Painting waste bins at Make a Difference Day 2. Buffelgrass clean up 3. Painting Tucson Urban League facilities 4. Habitat for Humanity construction 5. Painting at Mission San Xavier del Bac 6. Community Food Bank volunteers 7. Cleaning the Fox Tucson Theatre sign 8. Climb to Conquer Cancer
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BizCOMMUNITY continued from page 30 Sharon Foltz, manager of community relations for TEP and UniSource Energy, helped start the CAT program in 1993. Driving around the city, she sees hundreds of projects touched by company volunteers. Among them – brightly-painted waste bins at parks across Pima County, the first energy-efficient Habitat for Humanity home, revamped animal habitats at Reid Park Zoo, a new playground and community garden at the Community Food Bank and ramped-up efforts to educate young people about the dangers of drinking and driving. “We have expertise and enthusiasm,” Foltz said. “We like to get things done.” It’s the people – employees and their families – who drive the mission. “Every project we do has a connection to a group of employees,” Foltz said. “Our people know teamwork, how to run projects, and they are just amazing to volunteer with. They care so very much.” TEP donates from shareholder dollars – about $2 million annually. One grant opportunity, led by a committee of volunteers, conducts a competitive review to decide which organizations receive funding through TEP’s Grants That Make a Difference program. Annually, $100,000 is donated to nonprofit organizations that serve at-risk Tucsonans impacted by homelessness, domestic violence, poverty, child abuse and other social problems. The grants seek opportunities to leverage collaboration and other funds. “I’ve never worked for a company that did as much for a community as this one,” Bonavia said. “Yes, we give money to things, but we also spend a lot of time helping people do things. It’s great for the community and great in helping us make personal connections.” CAT volunteers recently held a baby shower at the Southern Arizona VA Health Care System, donating clothing, diapers, blankets and car seats to the women’s wellness program. A dozen TEP volunteers painted motivational words in hospital stairwells as part of “take the stairs” wellness project. “I think the spirit of TEP runs pretty deep,” Bonavia said. “We’re here, there and everywhere. These are our neighbors, this is our community, and we want to make a difference.”
Biz
Thanks, TEP Tucson Electric Power has received national recognition for community service. Among the awards:
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Edison Electric Institute Award for the “Driving Drunk Will Put Your Lights Out” awareness campaign, 1996
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Award for Excellence in Workplace Volunteer Programs Points of Light Foundation, 2004
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National Corporate Advocate of the Year National Child Welfare League, 2006
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Outstanding Corporate Philanthropist Association of Fundraising Professionals, 2012 www.BizTucson.com
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PHOTO: CARTER ALLEN
BizPHILANTHROPY
Passion for Community By Valerie Vinyard
Czarina & Humberto Lopez
Steven M. Gootter Philanthropic Award Recipients
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To describe Humberto Lopez and his wife, Czarina, as philanthropic is an understatement. For years, they have tirelessly volunteered. They serve on multiple boards. Humberto in particular has a talent for procuring money and endowments for his favorite causes. Over the years, this couple has donated millions of their own dollars. One of their favorite causes is the Steven M. Gootter Foundation. “We’re helping on a cause that’s very dear to us,” Humberto said. “It’s a good cause. Hopefully we’ll save a lot of lives.” The Gootter Foundation is grateful for all of their contributions over the years. On March 16 they will be honored with the Steven M. Gootter Philanthropic Award at the ninth annual Gootter Grand Slam gala dinner at the Westin La Paloma Resort & Spa. Many community leaders tout this couple as an integral part of the philanthropic scene in Tucson. They speak of how these two lavish local philanthropies with time and money. Ed Parker, former president and CEO of the United Way of Tucson and Southern Arizona, is one of those leaders. During his 34-year tenure with Tucson’s United Way, Parker established relationships with multiple philanthropic leaders in the community. Of those, he said that Lopez was one of the United Way’s first million-dollar donors. “The neat thing about the family is they are multifaceted in their charitable approach,” Parker said. “I think that’s what makes them unique – they have multiple interests in serving the community. “When I was leading the United Way in Tucson, he made an impact. It was real leadership,” he added. “He’s very creative in his philanthropic approach. Because he’s a good businessperson, he would leverage his gifts and others.” For a duo that’s still such a driving force in Tucson, it’s interesting that Humberto and Czarina first moved to Tucson in 1980 to retire. That idea didn’t last long. Ever since they arrived in Tucson, their certifications and board appointments have read like a Who’s Who of The Gootter Grand Slam is an annual tennis tournament and gala that raises money for sudden cardiac death. This year’s event is March 16.
organizations. “It’s been a good community – and we feel we have to give back to the community,” Czarina said. Her husband agreed. “We’re a charitable couple,” said Humberto, noting that he created The H.S. Lopez Family Foundation in Tucson about five years ago, which distributes monies to various organizations. Humberto is from Nogales, Ariz., and Czarina is from Nogales, Son. The couple first met at a local fair when he was 21 and she was 16.
NINTH ANNUAL GOOTTER GRAND SLAM Sunday, March 16 Westin La Paloma Resort & Spa 3800 E. Sunrise Drive 5 p.m. Tennis Celebrity Pro-Exhibition Featuring Murphy & Luke Jensen Tickets start at $40 per person Sponsorships available 6:30 p.m. Gala Dinner $175 per person Sponsorships available Visit www.gootter.org or call (520) 615–6430
They’ve been married 44 years and have two daughters – Iovanna Couig and Iliana Lopez-Carter – and four grandchildren. They have lived in Tucson’s El Encanto neighborhood since 1980. After graduating from Nogales High School in 1965, Humberto earned his associate degree from Cochise Community College before moving on to The University of Arizona, where he graduated with a bachelor’s degree in business administration. After college, he worked as a CPA for six years for Deloitte, Haskins and Sells in Los Angeles, developing an expertise in real estate. In 1971, he began investing in real estate and opened his own company in 1975. Today his Tucson-based companies employ about 500. Lopez serves as president of HSL Properties and HSL Steven Gootter died unexpectedly in February 2005 after going out for a jog with the family dog. The high school tennis champion was only 42 and had no history of heart problems. The Steven
Asset Management. About 25 work at the East Broadway headquarters. The rest are scattered among his 40-some apartment complexes and hotels in Tucson, Phoenix and Yuma. While he remained busy with work over the decades, Humberto always carved out time to serve on nonprofit boards and organizations. One of those – The University of Arizona Sarver Heart Center – is supported by The Gootter Foundation, including research at the Resuscitation Research Lab and The Steven M. Gootter Endowed Chair for the Prevention of Sudden Cardiac Death. The chair is held by Dr. Jil C. Tardiff, a cardiologist who specializes in hypertrophic cardiomyopathy. Dr. Gordon Ewy was the longtime director and chief of cardiology of Sarver Heart Center. Now retired, the cardiologist has known Humberto for 20 or 25 years. Lopez was on the Sarver advisory board and later became board director. Ewy noticed positive changes almost immediately. “Things really started to improve,” Ewy said. “He was very influential in helping us obtain endowments – which is critical in academic medicine. He’s very smart. He was invaluable.” Liz McMahon is director of development for Catholic Community Services. She’s known the Lopezes for years, although she mainly has worked with Czarina. “It’s just the energy and the love that you feel when you’re working with her,” McMahon said. “She’s an epidemic. You can’t help but feel her enthusiasm and passion. She’s one of my favorite people.” McMahon is impressed because the Lopezes are doing more than writing checks. “They’re involved not only because they’re philanthropists – but they work too,” she said. “They’re a blessing to our organization and a blessing to our community.” The Lopezes hope to leave a legacy of philanthropy. “Our objectives are education, health and welfare,” Humberto said. “Our goal is to leave a big chunk behind.”
Biz M. Gootter Foundation was established in his honor and is dedicated to saving lives by defeating sudden cardiac death through increased awareness, education and research. Winter 2014 > > > BizTucson 35
BizSALES Walk in Empty Headed Walk Out Empty Handed by Jeffrey Gitomer
How much of your presentation is canned? Whether you sell a product or service, whether it’s simple or sophisticated, what percentage of your presentation is the way you usually present it? Void of personalization. Void of customization. Void of interaction. And all about you. What kind of presentation do you think your prospect wants? They want to know: • What the value is to THEM • How this fits into THEIR business or life • How THEY benefit • How THEY win • How THEY produce • How it affects THEM • How THEY profit • How easy it will be put to use in THEIR environment And NONE of those elements exist in your standard canned presentation. Rats. Why are you giving a “we-we” presentation – all about you and how great you are – when the customer only wants a presentation in terms of them? Here’s the reality: When you walk in empty headed, you walk out empty handed. IDEA – Take all the boring crap you were going to say to the customer and send it to them in an email saying, “Here’s my presentation for the part you could find on Google or on our website, so that when we’re together I don’t bore you. Rather, I’ll be prepared to give you ideas that lead to < state how they win >. Fair enough?” Now you’re a real salesperson. Now you’re forced to go in with ideas and information about THEM that they can use for their own productivity, enjoyment, use and profit. And you now have a better than 50 percent chance of making the sale. Caution: Unless your presentation is customized and personalized for the customer – AND in favor of the customer – there will be a disconnect. Their dominant thought will be “this guy doesn’t understand me and/or my business.” Here are keys to understanding whose favor your presentation is geared toward. These are what I call WE-WE messages: • Statements about you that boast rather than prove. • Unfavorable statements about the competition. • Comparing yourself to the competition. • Self-serving questions like “What do you know about us?” • Qualifying questions about budget, payment or who decides. • Non-specific testimonials that praise you, but give no reason why. • Excuses about why you don’t have Twitter activity or a YouTube channel. (Trust me – they searched for it before you arrived.) 36 BizTucson
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• No social media recommendations from customers. THEM-focused messages can reveal their history, situation and motives – plus their past experience, wisdom and opinion. That’s true engagement. Here are a few THEM-focused messages: • Testimonials that overcome specific objections – such as price and quality. • Third-party media – articles or interviews – that support you or your product. • Great (and current) social media presence. Your reputation that helps put the buyer at ease rather than on guard – including direct interaction with customers. • Ideas you created that they can use. Proof you did your homework. Key point of understanding – features are about you and benefits are in the middle. But value is about them. And value – customer-perceived value – needs to be the focus of a thembased presentation. Warning – don’t be defensive. I can hear you telling me that you give a customized presentation. I can hear you telling me that you’re different than all the other people on the planet. And I can hear you telling me that customers love your presentation, and all about the fact that you can close three out of four people once you get in front of them. I hope you can hear me say, “That’s a bunch of crap.” Here’s how to measure your customization reality: 1 Amount of time spent on pre-call research. How well do you know the person and the company you are visiting? 2 The two great ideas you are walking in the door with will benefit them whether they buy or not. 3 The variations that you made in your presentation that adapt to their company, their present situation, their needs, their productivity and their success. 3.5 Your knowledge of the customer’s buying motives are as good or greater than your selling skills. Them-based presentations are the most difficult sales presentations of all. Marketing departments have no concept of them. And most salespeople aren’t willing to do the work to prepare them. That’s great news for the 5 percent of salespeople who are willing to do the work. They’re easy to identify – they’re always the highest performers and the highest earners.
Biz
Jeffrey Gitomer is the author of 12 best-selling books including “The Sales Bible” and “The Little Red Book of Selling.“ He just published two new sales books, available exclusively on Amazon’s Kindle – “Win Now!” and “The Sale ReDefined.” They will change the way you think and sell. His website, www.gitomer.com, will lead you to more information about training and seminars. Email: salesman@gitomer.com. © 2013 All Rights Reserved. Don’t even think about reproducing this documentwithout written permission from Jeffrey H. Gitomer and Buy Gitomer. (704) 333-1112 www.BizTucson.com
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Winter 2014 PHOTOS: COURTESY TUCSON MEDICAL CENTER
BizHEALTHCARE
for Excellence
TMC Invests $250 Million in Improvements By Mary Minor Davis The mortar and steel are in place in the new, four-story tower that has become the centerpiece of Tucson Medical Center. So what’s in a building? At TMC, the new facilities are translating into improved patient care, hospital leaders say. “We’re really proud of what we’ve built for the community,” said Judy Rich, TMC president and CEO. “We’re excited about what opportunities lie ahead for us.” Rich, along with the TMC board and management team, have been on a mission since 2007 to change how the medical facility serves up patient care and services. First, there was the financial turnaround in 2008, putting a troubled
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the building. A new campus entryway and an emergency pediatrics makeover rounded out the project. In all, TMC has invested more than $250 million in the new building, the renovation of hospital units and an electronic medical records system, among other projects. As the hospital settles into its new digs, TMC sees opportunities to improve staffing models, training and new patient resources that inspire a commitment to care on the part of patients, physicians and staff. Among the changes that make for a better patient experience is the move to go “all private” with patient rooms. Women’s care and pediatrics already have private rooms, leaving about 500 private and semi-private rooms for
“There’s something about being able to sleep when you’re in the hospital,” she said. “Private rooms provide a better environment, are less cluttered. It provides a more therapeutic environment for the patient.” Maish said with new facilities, the hospital can reduce patient interruptions, like ones that come with blood draws and other tests. Lab work is now being clustered with a last draw at 10 or 10:30 p.m., and again first thing in the morning. Nurses still check on patients at night, but with low lighting and quieter procedures so that patients can get much-needed rest. “Patients are now sleeping for seven hours straight,” Maish said. “That’s huge in a hospital.” Nurses are assigned by specialty, and
We’re excited about what opportunities lie ahead for us. –
Judy Rich, President & CEO, Tucson Medical Center
organization back in the black in less than a year. The following year, TMC announced plans to expand and overhaul its facilities, access and technical capabilities. At the center of that five-year expansion project was the construction of the $120 million tower and related projects. New operating room facilities, the addition of an orthopedic center, state-of-the-art cardiac facilities and additional patient rooms are all part of www.BizTucson.com
acute care. Elizabeth Maish, VP and chief nursing officer at TMC, said the tower allows the hospital to convert all rooms to private, with the first phase just completed and the balance finished by the first quarter of 2014. Private rooms lend themselves to improved communications with physicians and staff regarding patient care. And patients are sleeping more soundly, which promotes healing.
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patients are receiving consistent, expert nursing care from professionals who focus on specific areas, such as cardiac or orthopedic care. Major changes are seen in the new surgical suites in the tower. Linda Wojtowicz, former COO at TMC, led the OR move, which occurred over a single weekend. “It was a huge transition,” she said. “We moved 40 operating rooms and over 100 patients, almost without continued on page 42 >>> Winter 2014 > > > BizTucson 41
Pediatric waiting room
PHOTOS: COURTESY TUCSON MEDICAL CENTER
BizHEALTHCARE
Patient Engagement for Better Care By Mary Minor Davis The goal of Tucson Medical Center is to deliver caring, personalized, quality healthcare to patients and their families. To accomplish this goal, Judy Rich, TMC president and CEO, said the organization has implemented a new patient engagement philosophy that challenges traditional hospital thinking. Known as Nothing Happens To Me Without Me, the program is a twopronged approach to improving the patient experience in both administrative and patient care arenas. Rich said the premise is simple – include patients in decisions about their care because they are the ones most affected. “We have a tendency to think in healthcare that we have the answers to the problems,” she said. “We forget that we need to include the patient and the family in the solution.” On the administrative side, TMC has engaged with patients who have had both positive and negative experiences at the hospital and asked them to participate in patient advisory councils. Working hand-in-hand with hospital officials, they work on project teams to evaluate, recommend and even implement improvements to facilities, processes and patient programs. Linda Wojtowicz, former COO for TMC and one of the architects of the program, said about a dozen patient volunteers – nominated by members of the management team throughout the hospital – meet quarterly as a group and work within project teams throughout the year. Committees review processes, physical space, overall quality of care and any other ideas that are offered to improve the patient experience. As an example, a beautiful design element was incorporated into the master plan for the renovation of the pediatric waiting room. But when the advisory council reviewed it, they discovered that the element created a visual barrier for parents in keeping an eye on their children. Another project in the west wing failed to incorporate water fountains in a patient waiting room, and the project was redesigned based on the recommendation of the council. continued on page 44>>> 42 BizTucson
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continued from page 41 incident. It took a village.” The new facilities have been met with high approval from patients and physicians, Wojtowicz said. “Patients are finding the OR experience very positive,” she said, adding that new surgeons are expressing interest in using the facility. The hospital has acquired new robotic technology, including the da Vinci robotic surgical system. Wojtowicz shared several of the lessons learned in making the transition to the new facility. For starters, there was the impact of the tower itself. TMC, a traditional single-level facility, had at one time held the title as the largest single-story hospital in the United States. Emergency response and evacuation procedures had to be completely rewritten and taught, as they had to incorporate stairwell egress and other factors into the plan. Staffing changes also focused on centralizing resources by floor as opposed to units for better efficiency, and the task of delivering sensitive and sophisticated supplies and equipment had to be coordinated with the operating rooms covering two floors. Among the changes was the need for training in “elevator etiquette.” “TMC staff had never had to deal with these issues,” she said. “Things like transporting patients (load head or feet first?), knowing what you should and should not say in a public elevator with a patient, who gets out first – these are all things that needed to be taught to hundreds of staff and volunteers.” New facilities are helping to grow some of the hospital’s specialty services. Anita Bach, director of cardiac services, said the ability to perform transvascular aorta valve replacement procedures and having the hybrid cardiac/ catheter operating facilities is attracting referrals from physicians. “It’s really given us the opportunity to grow the vascular program,” she said.
Biz
Biz www.BizTucson.com
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BizHEALTHCARE
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It used to be about identifying a disease and fixing the patient. Now it’s much more holistic – patient engagement with a purpose. – Brenda
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Judy Rich
President & CEO Tucson Medical Center
Carle, Chronic Disease Coordinator Tucson Medical Center
“It’s been extremely valuable for TMC,” Wojtowicz said. Although not unique in the country, Wojtowicz said she doesn’t believe another hospital in the region is using the patient advisory council model to aid in decisions about patient care. “It’s very hard to do because you have to change your mindset from one that you have all of the answers, and accept the fact that you don’t,” she explained. “And of course, when you ask folks for their opinion you have to be willing to take it.” The other part of the program involves engaging patients in their own healthcare. Brenda Carle manages patient engagement and transitional care. A nurse at TMC since the 1980s, she said she sees tremendous value in the engagement approach and has witnessed positive change in patients in the short time the program has been active. “It used to be about identifying a disease and fixing the patient,” she said of the role of healthcare professionals. “Now it’s much more holistic – patient engagement with a purpose.”
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By asking questions and understanding concerns patients have, it has helped patients understand they have a role in their health. The key is getting them to communicate early on in the process. To achieve this, TMC has expanded the discharge checklist and now provides it upon admission. Patient care is reviewed between the nurse, physician and other care team members so that when patients are discharged, they have had time to ask questions and understand long-term goals and expectations. “We’re definitely seeing a change with patients because they’re having ‘aha!’ moments,” Carle said. Those moments can add up to a healthier community, Rich said. “Patients having input into their care is a real goal for us,” Rich said. “We understand that patient engagement is very cost effective and very good for their care. “
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Elizabeth Maish
VP & Chief Nursing Officer Tucson Medical Center
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PHOTO: COURTESY VENTANA CANYON GOLF & RACQUET CLUB
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This is one of the best-kept secrets in Tucson. And it’s time we told our story.
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– George White, GM & CEO Ventana Canyon Golf & Racquet Club
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World-Class Treasure in the Desert By Tara Kirkpatrick Ventana Canyon Golf & Racquet Club is a Tucson success story. Bold and measured leadership, a long-term strategic plan and a commitment to preserving a unique, treasured lifestyle have resulted in success for the club at the foot of the Santa Catalina Mountains. The club’s achievements can be traced to a calculated risk taken a decade ago by a group of forward-thinking members that has since reaped great reward. “This is one of the best-kept secrets in Tucson,” said Ventana Canyon Golf & Racquet Club GM and CEO George White. “And it’s time we told our story.” Owned by Wyndham Worldwide in 2003, the Lodge at Ventana Canyon and the club’s future were uncertain. Members worried about fallout if the hotel chain sold or abandoned the property. Club members wanted to preserve the exclusive, award-winning golf and tennis center, the scenic landscape for morning walks and hikes and the beautiful neighborhood built around The Lodge at Ventana Canyon boutique hotel and country club centerpiece. They knew then www.BizTucson.com
that their destinies were linked – if the club floundered, so too would home values, the community and their lifestyle. A consortium of investors – most of them members – formed the Ventana Canyon Alliance in 2003. With a focused leadership team, the group purchased the property from Wyndham to take control over its direction and future. A decade later, the decision has paid off. “I’m so happy to see that we have succeeded,” said Dave Carney, an investor who helped sell others on the concept in 2003. “The club now is better than it ever was.” Indeed, the club and lodge have remained among the top golf and tennis destinations in the country, surrounded by a very desirable neighborhood of nearly 700 homes. Today, the club is a haven for corporate leaders and retired CEOs, and a welcoming community for families who want to see their children succeed in sports and develop values. “You drive in the gate and you feel connected,” said White, a lodging industry veteran. “This is a place where kids can grow up, learn etiquette and how to speak to adults – because they are
SPECIAL PROMOTIONAL FEATURE
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BizTOURISM
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This is a lifestyle here, a whole different concept. You feel part of something. –
Janell Jellison, Member, Ventana Canyon Alliance Board of Managers
continued from page 47 playing with some of the top leaders in their community on the golf course.” Janell Jellison, a member of the Alliance Board of Managers, agrees. “People join clubs now for community. They want the whole family to be involved.” Led by the Alliance Board of Managers and advised by the Board of Governors, the club operates like a public company. “With 247 shareholders, we knew very early on that we ought to conduct our business as a public company would,” recalled Carney, who chaired the Board of Managers for seven years. “We very quickly defined ourselves as a business – not a country club – and conducted ourselves accordingly.” Shrewd money management over the last decade has enabled the club to reinvest $8 million into the property. White’s leadership team also works in tandem with the Ventana Canyon Community Association, which manages the surrounding luxury residential properties. This relationship cemented Ventana as a top community with milliondollar homes, stunning cactus gardens,
George White
GM & CEO,Ventana Canyon Golf & Racquet Club
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fitness paths and sidewalks where neighbors are running, walking their dogs and exercising under the Tucson sun. “This is a lifestyle here, a whole different concept,” said Jellison, who joined in 1989 and found the club to be a fundamental part of her son’s childhood. “You feel part of something.” As a successful realtor, Jellison also lauds Ventana as one of the most attractive places to live. “Many desert neighborhoods in Tucson can be a little stark,” she said. “Here, we have the sidewalks, the grass. You can walk, ride your bike and you never have to cross a major thoroughfare just to go to the club or get a good workout.” The Lodge, a 50-room boutique hotel run concurrently with the club, is a AAA Four Diamond property – an accomplishment the Board of Managers has upheld for the past 18 years. “We are very diligent about keeping it that way and consider that our top priority,” Carney said. “I love this place. I’m proud of what we’ve accomplished.”
The Founding
Ventana Canyon Visionaries Gerald D’Huy Jerold McCoy Taylor Payson Travor Beste Michael Goode
Biz
Janell Jellison
Member, Ventana Canyon Alliance Board of Managers
Dave Carney
Investor, Ventana Canyon Golf &www.BizTucson.com Racquet Club
National Cache The Lodge at Ventana Canyon is sometimes confused with and overshadowed by its lofty neighbor up the road – Loews Ventana Canyon. Yet this intimate resort property holds numerous prestigious awards. It has more cache with world travelers and the national media than it does here in town where it remains undiscovered by many locals. Recent honors include: • AAA Four Diamond award for 18 consecutive years
PHOTOS: COURTESY VENTANA CANYON GOLF & RACQUET CLUB
• Golf Digest’s Top 50 Golf Friendly Courses for Women (#25) in 2013 • Golfweek named it one of America’s best golf courses – from 2009 to 2013 • Links magazine incudes it among the Top 50 golf courses – from 2008 to 2013 • Tennisresortsonline.com ranks it among the Top 50 tennis resorts in the world – from 2008 to 2013 • Wine Spectator Award of Excellence in 2012 and 2013 This boutique hotel is consistently recognized by top travel publications: • Travel & Leisure named it among the Top 100 hotels in 2000 and in 2007 • Conde Nast Traveler named it one of the top 25 small hotels in North America and to its gold list for the world’s best places to stay in 2002, 2005 and 2006. In 1999 it also received the reader’s choice award as the #1 resort in America. This little gem of a property even was included in a list of “most underrated golf resorts.” Source: thelodgeatventanacanyon.com
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BizTOURISM
Intimate Setting for Special Events By Tara Kirkpatrick The Lodge at Ventana Canyon plays host to unique special events in a breathtaking setting. Among them: Golf Getaways The Lodge is becoming one of the Southwest’s premier golf destinations – where groups tee off from a rock cliff perched over stunning Sonoran desert vistas, enjoy a drink in the clubhouse’s stone bar and gather in an area of the hotel reserved exclusively for them. “We are an independently owned boutique property with a location that is unmatched, behind an exclusive, gated community,” said Chris Sabala, The Lodge at Ventana’s director of sales and marketing. Ventana’s golf instruction team, led by pro John Basden, can tailor an entire excursion experience for golfers as well as clinics and lesson packages. The two 18-hole courses, designed by Tom Fazio, are a testament to skill amid challenging canyon and mountain terrain. Ventana’s Mountain Par 3, arguably one of the most famous holes in the West, is the subject of magazine articles and blogs each year both for its difficulty and rustic beauty. “Ventana is truly one of Arizona’s Chris gems,” Sabala said.
center and full resort. Andrew Birgensmith, president and CEO of the Tucson Symphony Orchestra, holds several meetings at Ventana throughout the year, including the board retreat and annual meeting. “The Lodge at Ventana Canyon is positioned in a convenient location for many of our public and private events,” Birgensmith said. “The level of service and personal attention is unmatched by any other resort in Tucson and the facilities and amenities are simply the best around town.” George White, GM and CEO of The Lodge at Ventana Canyon, said, “I have people come up to me all the time and say they have never met more friendly employees and a staff that meets their needs.”
Holiday Parties, Events, Destination Weddings With its beautiful grounds and rustic elegance, The Lodge at Ventana Canyon attracts locals and out-of-town travelers for a variety of celebrations. Destination weddings are a perfect match, offering a stunning outdoor ceremony site and reception space with floorto-ceiling windows, offering a dramatic Sabala view of the Santa Catalina Mountains. The Lodge’s unique setting is ideal for Director of Sales hosting special events. This intimate propCorporate Outings & Marketing erty includes the grand dining room with Any CEO knows that a well-timed cora stacked stone fireplace, plus several banporate retreat can bring out the best in a quet rooms and outdoor spaces for holiday parties and gatherteam of employees – if the conditions are right. ings. The Lodge at Ventana Canyon and its newly remodeled “You can go to a big resort and just be a number or you rooms offer that unique gathering space with accommodations can take over our whole property for your group,” Sabala said. that focus on the extras that bring people together. From wire“Why not come to The Lodge and have the whole place to less technology in all suites and banquet rooms to the careful yourself ?” placement of business groups for brainstorming, The Lodge provides not just a 50-room boutique hotel, but a conference Biz
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Experience the Ventana Lifestyle
PHOTOS: COURTESY VENTANA CANYON GOLF & RACQUET CLUB
By Tara Kirkpatrick Simply put, a membership to the Ventana Canyon Golf & Racquet Club is a worthy investment. That’s the word from members, who enjoy worldfamous championship golf, some of the best tennis courts in Tucson, a spa and a destination resort that people flock to when the rest of the country turns cold. These are at your disposal, every day. Located in a well maintained, gated community, Ventana is a place for camaraderie, community and – more than anything – a serene escape from the stresses of daily life. Golfing with the kids on the weekend, enjoying a drink with friends in the clubhouse and hiking around one of the most beautiful places are par for the course. “Travelers come to Tucson from all over the world,” said Ventana GM and CEO George White. “Here, at our club, you can be a member for a day or for a lifetime.” Ventana Canyon Golf & Racquet Club offers multiple levels of membership to fit every lifestyle. From golf to tennis to social, the club has trial offers in almost every category as well as summer golf memberships and business memberships. “We are now even more focused on growing our junior memberships and programs by offering reduced dues for junior golf and junior tennis – with juniors defined as up to age 50. Truly a membership to fit every lifestyle,” said Chris Sabala, Ventana’s director of sales and marketing. “As a member, not only do you have a wonderful country club, but you have access to this 50-room hotel,” Sabala added. “That is such an added value to the membership.” Member Andrew Birgensmith, president and CEO of the Tucson Symphony Orchestra, said “If you want the very best resort experience, then the Lodge at Ventana Canyon should be your choice.” The club also searches for new benefits to offer its more than 700 members. A new relationship with the University of Arizona brings top scientists and professors to speak at the clubhouse on current issues and topics. The TSO entertains guests at several club functions with its talented quartets and percussion ensembles. Numerous clubs devoted to hiking, triathlons, books, art and other passions are among its membership. Traditions abound – including Ventana’s Season Opener the first weekend in November – an evening of cocktails, appetizers, seafood and steak held under the twinkling lights on the club’s grassy front circle. It is the best party of the year. “We want to make this the best club it can be,” White said. “Ventana is one of the great values.”
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Mike and Bob Bryan World Doubles Champions
Distinctive Difference By Tara Kirkpatrick In the saguaro-studded foothills of the Santa Catalina Mountains, the Ventana Canyon Golf & Racquet Club offers the luxuries of an upscale, private club set in the lush Sonoran Desert. It’s a playground for world-renowned golf and tennis by day plus gourmet cuisine and not-to-miss social events by night. Golf Golfers across the world travel to the Ventana Canyon Golf & Racquet Club to play Par 3 on the Mountain Course – longing to land just one ball on the green from a tee perched dramatically above the steep rock cliffs. This could be the most photographed hole in the West, just one highlight of the two championship 18-hole courses – designed by Tom Fazio – that blend challenging skill with magnificent desert and mountain 52 BizTucson
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views. Golfers can hone their skills in Ventana’s new Golf Academy and program of instruction, led by pros John Basden, Dave Simm and Susie Myers, along with clinics, mixers and tournaments that honor every level of play. The celebrated junior golf program is not only an introduction for youth, but a lesson in etiquette and discipline that could serve them throughout their lives. Tennis The Center Court, which has hosted world doubles champions Mike and Bob Bryan, headlines a premier tennis facility with 12 lighted courts with shaded, bench seating and social areas perfect for events and tournaments. Director of Tennis Jonathan Davis, whose family has a tennis legacy in Tucson, is building a progressive program at Ventana that offers a full-service pro
shop, private lessons, challenging clinics, competitive USTA play, member mixers and a budding junior tennis program. Ventana’s freshly renovated Center Court rivals any facility in Southern Arizona and can host championship-level play with a seating capacity for 600 people. The Lodge at Ventana Canyon The spacious suites in this 50-room boutique hotel – recently refurbished by award-winning interior decorator Lori Carroll – range from 800 to 1,500 square feet and feature full kitchens and terrace views. Walls of windows that offer breathtaking mountain views help make the clubhouse and The Lodge at Ventana Canyon one of the region’s best-kept secrets. Executive Chef John Luzader’s gourmet skills are showcased through sumptuous wine dinners, weekwww.BizTucson.com
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Dave Carney, Investor, Ventana Canyon Golf & Racquet Club
ly Italian feasts and bountiful brunches. In addition to the floor-to-ceiling stone fireplace in the grand dining room and the stone bar and grill, the facility also includes banquet rooms, a full-service spa, a free-weight and cardio gym, Pilates and fitness classes, remodeled men’s and women’s locker rooms with sauna, steam room and Jacuzzi and separate men’s and women’s lounges. The clubhouse and dining patios are popular venues for weddings, family reunions, golf and tennis excursions, holiday parties and corporate retreats. The Lodge’s unique setting is ideal for hosting special events for members and non-members. Pool Ventana’s junior Olympic-sized, 25-meter heated pool is used winter and summer. Cabanas, ample sunwww.BizTucson.com
bathing areas and a children’s wading pool attract families most of the year. The Ventana Aquatics Program offers expert swim lessons and competitive swim teams for youth, as well as an adult master’s team and weekly water aerobics classes. In summer, the club hosts popular “dive-in” movie nights, fireworks parties and poolside member mixers. Cultural Stimulation Imagine a night under the stars, listening to the Tucson Symphony Orchestra ensemble or an exclusive meet-and-greet with University of Arizona VP for Athletics Greg Byrne. The very best of Tucson come to Ventana through unique cultural and community partnerships. The club invites scientists and scholars, athletes, local leaders and captains of industry to speak at
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exclusive dinners and events. Through its annual Patriot Golf Day tournament, the club is also one of the top contributors to Folds of Honor Foundation, supporting families of military veterans who have been wounded or killed in action. Lodge Concierge Arlene Corey is one of only three Tucson members in the prestigious Les Clefs d’Or USA. She can make connections for Ventana members in any city through her access to 4,000 concierges around the globe. Dinner reservations at Manhattan’s newest eatery? No problem. A Way of Life Ventana is more than a club. This is a place of community that celebrates the Southwestern lifestyle.
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PHOTOS: COURTESY VENTANA CANYON GOLF & RACQUET CLUB
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I love this place. I’m proud of what we’ve accomplished.
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Robert Sarver’s
Banking Vision By Gabrielle Fimbres
A decade ago, native son Robert Sarver set out to bring a different kind of bank to Tucson and the state – one that had the assets of a larger institution but retained the friendly, personal service of a community bank. Alliance Bank of Arizona opened in Tucson and Phoenix in 2003, and quickly made its mark as one of the fastest-growing banks in the United States. In a decade, the bank grew from $20 million in capital to more than $3 billion in assets. Alliance extended more than $400 million in loans to Tucson in the past three years. Alliance Bank has two locations in Tucson, six in metro Phoenix, one in Flagstaff and one in Sedona, with almost an exclusive focus on business banking. “The main thing Alliance provides is credit to help the economy grow,” Sarver said. “We are one of the few banks that has been in a financial position to lend a lot of money during the tough times. We pride ourselves on our consistency in terms of being with our customers in good times and in bad times.” Sarver’s banking vision is spreading throughout the west. Alliance Bank’s holding company – Western Alliance Bancorporation – has grown to $9 billion in assets and now has 42 branches in Arizona, Nevada and California. Sarver is chairman and CEO of Western Alliance Bancorporation. While it has grown at lightning speed, Alliance Bank retains its friendly feel – the bank where everyone knows 54 BizTucson
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your name. “We combine what the large banks have to offer – which is lending capacity, a broad array of services and sophistication – along with what community banks offer, which is more personalized service,” Sarver said. Banking has been in Sarver’s blood since childhood. Sarver, the son of Jack and Irene
What Tucson Customers Say about Alliance Bank “The folks at Alliance are creative. They are always working with us to find solutions to issues. It’s never just ‘no’ or ‘I have to send it to Phoenix.’ You are dealing with decision makers, and they are always true to their word.” – Chris Gleason CEO, NextMed “As a small company, my business partner Tamara Scott-Anderson and I were looking for a small, locally owned bank that we could work with. Instead of a bank, we feel like we have a partnership with Alliance that enables Contents Interiors to be a successful business. During this past recession, it was extremely important to have someone to work with that we trusted.” – Carol Bell President, Contents Interiors
Sarver, grew up in Tucson. His dad was in the savings and loan business, and Sarver worked part-time with him while a student at Sabino High School, learning the ropes. “I did a little bit of everything – I worked in the accounting department, I was a courier, I did loan processing.” He went on to the University of Arizona, studying accounting and finance. When he was just 18, Sarver’s father passed away from heart disease. He went on to a career that surely would make his dad proud. “I was fortunate to have a college professor named Robert Wallace who was a former bank president,” Sarver recalled. “We had many conversations together and ended up starting a community bank.” In 1984, Sarver, then 23, became the youngest person to charter a bank – National Bank of Tucson, which later became National Bank of Arizona. Was he nervous? “Nah, I was too young to know the difference.” He served as company president until the bank sold in 1994. Sarver, who lives in Phoenix, has flourished in the business community, including becoming majority owner of the Phoenix Suns in 2004. He’s been guided by mentors, with his parents at the top of the list. His father taught him about work ethic, the importance of being prepared and the desire to always outwork the people you compete against. “And my mom taught me how to treat people, knowing right from wrong, continued on page 56 >>>
Robert Sarver’s keys to success mirror the Five Ps of his Phoenix Suns:
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Preparation, poise, pride, perseverance – if you can accomplish those you will be successful in the fifth one, which is performance. That translates to everything in life.
PHOTO: CHRIS MOONEY
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continued from page 54 honesty, ethics, integrity,” he said. Armed with solid life lessons, Sarver created a bank that helped save businesses during the crushing recession. “We were there to try to provide the needed resources for businesses, including small businesses. Small businesses are still the backbone of the state in terms of employment. And that is really the niche we fill,” he said. “If you’ve got a business that wants to bank with a company that’s a little bit smaller and more personalized in terms of the services, we’re that option. But at the same time we have the resources, sophistication and the products of the larger banks. We provide credit services to businesses all the way up to $40 million.” How was Alliance able to grow when other institutions faltered? “We were fortunate in that we were able to raise a significant amount of capital early on in the process which enabled us to have the resources to provide credit and actually grow our franchise significantly during the down times,” Sarver said. Duane Froeschle, president of Alliance Bank of Arizona, oversees opera-
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Duane Froeschle President Alliance Bank of Arizona tions from his Tucson office. Froeschle previously worked with Sarver at National Bank of Arizona for 15 years. “When Alliance Bank was formed, we decided there was an opportunity to have a different presence in the market, a way to fill a unique need,” he said.
“We rely on experienced local bankers that understand the marketplace and have a complete underwriting presence in dealing with clients locally,” Froeschle said. Clients have direct contact with top decision makers who know them and understand the Tucson market. The average banker at Alliance has 20 years of banking experience, with 15 of that in Tucson. Because of its resources, Alliance has migrated through tough financial times and is poised for expansion, Froeschle said. The bank now competes against the three big national banks that dominate market share, he added. Jan Rowe, senior VP and director of marketing for Western Alliance Bancorporation, said the bank’s commitment to service – and responsiveness – sets it apart. “The same model we started with is resonating even more today. People want a real relationship with a banker who is committed to them and can think outside the box,” Rowe said. “It’s the right model for the right time.”
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Death Knell Rings for XP April 8
BizTOOLKIT
By Cristie Street
Since we now measure our business prowess in terms of technical savviness, it might be tempting to mock the less fortunate – those poor, under-powered users of Windows XP. After all it has been nearly 13 years since XP was heralded as the desktop operating system to revolutionize business productivity. In computer time that represents light years, not to mention a dozen new flavors of Windows. Though XP has long since crossed over to geriatric status, more than 30 percent of the world’s PCs still run this operating system. Even though no one has been able to purchase XP for more than four years, during the past year, Microsoft has been planning the largest OS memorial service in history to officially mark XP’s planned and publicized death on April 8, 2014. So why are there so many XP machines still in use? While there will always be slow adopters and laggards who only recently got comfortable with the Start menu, the problem of change is not exclusive to pace. Hundreds of thousands of XP machines in restaurants, retail stores, medical/dental practices and other businesses are simply running without much thought. They are under desks, driving simple applications we take for granted, but can’t live without. They have not required upgrades, but now businesses are forced to retire these old XP boxes, without adequate consideration of resources, priorities and interdependencies. Do they have cash to buy Windows 7 or 8.1 and new hardware to run it? Do they have people with the knowledge of migration tricks and pitfalls? Do they have other technology projects of more strategic value and, consequently, higher fi-
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nancial risks? Does simply upgrading the desktop operating system lead to a broad ripple effect of additional software and hardware upgrades? That old printer, that scanner, that graphic design software all need to be upgraded – at twice the cost of the Windows software update. And we’re still resuscitating the economy, so there is not much cash or capacity stockpiled. If we skip XP’s funeral, can we pretend it’s not dead? This is one case where the risks of not upgrading clearly outweigh the costs. The hard, cold truth is that XP will be classified as “insecure” starting April 8. There will be no new security updates from Microsoft, no hot-fixes, no free or paid support options, no new technical help published. In addition, almost every ancillary product that installs on XP will end support. Most immediately, the anti-virus software will stop updating and become obsolete. Those who are regulated may go from compliant to uncompliant faster than Cinderella’s carriage turned into a pumpkin. Even if there is nothing worth protecting on the machine, it could be “owned” by a criminal entity and used for illegal purposes. And without patches, all XP boxes will eventually be owned. If you expect to be in business on April 9, you need a technology plan that does not include Windows XP. But then you can rest again as Windows Vista won’t die until 2017. As managing partner of Tucson-based IT firm Nextrio, Cristie Street enjoys discovering forgotten XP machines at more than 1,000 business clients throughout Arizona.
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BizBENEFIT
Photo: Courtesy The University of Arizona Museum of Art
Art Treasures Seldom Seen By Valerie Vinyard
The University of Arizona Museum of Art has quite a stash – of rare and seldom-seen works of art. In fact, the museum’s 10 rooms can showcase a mere 3 percent of its collection at any one time. “There are a lot of things that just never go out on display,” said Olivia Miller, curator of education for this museum with a world-class collection of more than 6,000 pieces. The museum is in the UA fine arts complex off Speedway Boulevard. “We’re going to try to bring the 97 percent out as much as we can,” said Jill McCleary, UAMA archivist and one of the organizers of the museum’s spring gala. “We’re using it as a reason to celebrate what we have.” That’s everything from Rembrandt and Goya to Picasso, O’Keeffe and Lipchitz. UAMA is holding two events in the coming months to introduce people to the museum, showcase its art treasures and grow membership. The events ¬– a membership drive and the gala – complement a series of 21 exhibitions over the next 18 months. The first event will be open to the public on Jan. 24 – a membership drive called Mysteries from the Vault. Beverages and hors d’oeuvres will start off the evening of mystery, scavenger hunts, mini art tours and entertainment. Lori Carroll, new to the UAMA Partners Board, co-chairs the membership 58 BizTucson
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drive along with fellow board member Pattie Johnston. As the owner of Lori Carroll & Associates, an interior design firm, Carroll is surrounded by art. She said it’s exciting to see what is available at the museum, and she hopes to grow museum membership. “I’d like to invigorate the enthusiasm for the arts,” Carroll said. “You think of all that is available to do at the university. There is some amazing art here. But it’s going to take some young, energetic blood to have the enthusiasm to embrace it.” Like many museums, attracting new members is an ongoing challenge. UAMA is developing programs to draw in new members from curious adults to toddlers.
MYSTERIES FROM THE VAULT Friday, January 24, 6 to 9 p.m. University of Arizona Museum of Art 1031 N. Olive Road (off Speedway Blvd.) No charge For reservations, call Lori Carroll, (520) 886-3443
SWINGIN’ UNDER THE STARS Saturday, March 22, 6:30 to 10 p.m. University of Arizona Museum of Art $200 per person For reservations contact Christine Aguilar, (520) 621-5676, vca@email.arizona.edu
“We’ve started a program for the university community called Out of the Vault, where we pull a work of art that’s not on display and have a professor come and talk about it during lunchtime,” Miller said. A new early childhood program called Art Sprouts aims to lure more families to the museum. In keeping with tradition, the 2014 gala event would have been called Bouquets to Art, where local florists create a bouquet inspired by a piece of art. Yet UAMA wanted to try something different as it celebrates 90 years of campus art exhibits. The new gala will take place March 24 and is called Swingin’ Under the Stars. Held outside in front of the museum, it will feature tents with food and drink. The Jeff Haskell Band will play swing music, there will be a photo booth and likely a silent auction. The gala also will have interactive activities – such as living statues interspersed among the “real” statues. “People can be a part of the art,” said McCleary, who is hoping to have 300 people at the event. “With Swingin’ Under the Stars, you’re under this world-class art collection,” Miller said. “It’s just not every day you have that opportunity. “We will have live swing music and dancing in a beautiful, sparkling setting. It will be really fun and really different.”
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PHOTO: KRIS HANNING
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From left â&#x20AC;&#x201C;
Richard M. Yetwin, John C. Lacy and Lisa Anne Smith, Partners, DeConcini McDonald Yetwin & Lacy Attorneys with DeConcini McDonald Yetwin & Lacy Denise M. Bainton John H. Barron III Alice W. Callison Barry M. Corey Shijie Feng 60 BizTucson
Peter B. Goldman Nathan B. Hannah Steven J. Itkin James A. Jutry Kristen B. Klotz
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John C. Lacy Mark D. Lammers Kay B. Nelson Alexia Peterson John C. Richardson
Lisa Anne Smith Spencer A. Smith Sesaly O. Stamps Gary F. Urman
Michael R. Urman Richard M. Yetwin Ronald Zack
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Law Legacy of Evo DeConcini By David B. Pittman The name DeConcini has longtime cache in this community. Evo A. DeConcini co-founded the law firm now known as DeConcini McDonald Yetwin & Lacy in 1968. By then, the political family patriarch and civic leader had already served as Arizona attorney general, Pima County Superior Court judge and member of the state’s Supreme Court. Today the law firm has grown into one of Tucson’s largest, with 21 lawyers and 42 employees. It also has a Phoenix office. Two young lawyers joined DeConcini in founding the firm 45 years ago – John R. McDonald, who died last year, and Dennis DeConcini, one of Evo’s three sons. Dennis had served as chief of staff to former Arizona Gov. Sam Goddard and later became Pima County Attorney and a three-term U.S. senator from Arizona. “After retiring from the bench, my father continued practicing law and building his real estate investment business. He was a good man and an outstanding lawyer and judge. He was my mentor. I tried to model myself after him.” The six-story federal courthouse at 405 W. Congress St. is named for Evo DeConcini, who died in 1986. The family traces its roots to the 13th century in Florence, Italy. Evo was born in 1901 in Michigan. The DeConcinis moved to Arizona in 1920. Though Dennis still is associated with the firm, he has not drawn a paycheck from the practice since 1972 – the year he departed to launch his political career as county attorney. DeConcini describes his own involvement in building the firm as “minimal,” though having the name of an 18-year U.S. senator on the shingle has helped business. www.BizTucson.com
Before leaving everyday involvement in the firm, he was instrumental in hiring Richard M. Yetwin, managing shareholder of the firm from 1982 to 1994. He describes Yetwin as a brilliant attorney whose practice centered on business, real estate, government and school issues. By 1977, John C. Lacy also had joined the firm. His expertise in natural resources, mining and environmental law resulted in the firm becoming a law leader in those fields. “It’s very interesting that we have had very little turnover,” Yetwin said. “We’ve got a whole group of lawyers with 15 to 30 years in the firm. So we are kind of a career outfit. For me, that’s a real highlight because it is not common in modern firms.” As the firm grew, it hired high-achieving, young lawyers who graduated at or near the top of their law school classes. One of those academic standouts was Lisa Anne Smith, a 1995 graduate of the University of Arizona law school who finished second in her class. Smith, whose practice emphasizes education law, employment law and civil litigation, was named managing shareholder five years ago. Smith described the firm as a fullservice, multidisciplinary organization. “We represent plaintiffs and defendants in litigation,” she said. “A lot of firms are plaintiffs firms or defense firms. We really don’t have a strong bent like that one way or the other.” Smith is most proud of the firm’s outstanding and unwavering commitment in providing pro bono, charitable and public service work. Indeed, the firm recently was honored as the Volunteer Lawyers Program of Southern Arizona Legal Aid Firm of the Year – the 15th time in the last
18 years. The State Bar of Arizona also honored many of the firm’s lawyers by including them in its annual “Top 50 Pro Bono Attorneys” list. Members of the firm are active volunteers and take leadership roles in a wide variety of nonprofit organizations, including the Arizona Historical Society, Arizona Kidney Foundation, Community Food Bank of Southern Arizona, Jewish Family & Children’s Services, Tucson Botanical Gardens and the National and International Centers for Missing and Exploited Children. “Virtually everyone employed here provides some sort of pro bono or charitable work,” Smith said. Several of the firm’s attorneys are adjunct professors at the UA College of Law, including John C. Richardson, who teaches education law; Mark D. Lammers, trial practice; Lacy, mining law, and Yetwin, real estate law. Attorney Gary F. Urman teaches education law at the UA College of Education. Five of the firm’s attorneys – including Richardson, Lacy and Yetwin – were named to the 2014 edition of Best Lawyers in America, the oldest and most respected peer-review publication in the legal profession. Also making the list were Denise M. Bainton, education law, and James A. Jutry, tax law, trusts and estates. During its first 20 years, the firm operated from various downtown offices. In 1988, it moved to a new building at 2525 E. Broadway. The firm recently renewed its lease at that location for another 10 years. Smith expects the firm to be around far longer than that. “We are preparing to embark on our second 45 years,” she said.
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BizCOMMERCIAL
Positive Forecast for 2014 & 2015 By Mary Minor Davis For the past several years the forecasts presented at the CCIM Pima County Commercial Real Estate Market Forecast Competition have been “pretty bleak,” according to 2014 organizers. This year could be different. There’s hope on the horizon. CCIM stands for Certified Commercial Investment Member. This year marks the 23rd anniversary of the Southern Arizona Chapter event where top market specialists forecast the commercial real estate market for 2014 and beyond. Terry Lavery, associate broker at Tucson Realty & Trust Co. and marketing co-chair of the event, said that indicators show that 2014 and 2015 are “going to be two of the best years we’ve seen in the last five to seven years. “I think we have a real positive story to tell. This is a phenomenal opportunity to get the word out that we’re back, we’re in business,” he added. Melissa Lal, a leasing agent with Larsen Baker and member of the planning committee, said over the past few years the news has been very negative, although there have been some signs of recovery. “This event is an indicator of the local economy’s conditions matched against the national recovery,” she said. Brandon Rodgers of Cushman & Wakefield ǀ PICOR Commercial Real
Estate Services is chair of the 2014 event to be presented Feb. 11 at Tucson Marriott University Park. He said much of what is covered doesn’t necessarily make national news. “Insight that this event provides is beyond the headlines,” he said. Brokers from different markets will share trends and what they are seeing on the ground. Panelists will offer forecasts including: • Projected growth figures • Vacancy rates in retail, office, industrial and apartments • Year-end building permits for land • Year-end interest rates in finance • Average price per square foot predictions in appraisals • Where the market is heading • General health of Tucson’s commercial real estate market
Lavery said CoStar Group – the industry’s leading provider of commercial real estate information, marketing and analytic services – provides the metrics by which forecasters are measured, except for multi-family real estate, where other resources are used. Event planners said participants will leave with a working knowledge of current market conditions and insight into
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This event is an indicator of the local economy’s conditions matched against the national recovery.
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– Melissa Lal Leasing Agent, Larsen Baker
emerging opportunities. Details, including keynote speakers, are being finalized. Another event highlight is recognition of legends in the local commercial real estate market. Now in its fourth year, past Legend honorees included Don Diamond, Bill Estes and Sonny Solot. Legends winners will be announced in early 2014. This is one of the longest-running CCIM competitions nationally, a model that other chapters have adopted. The Southern Arizona Chapter has 150 members. The Chicago-based CCIM Institute confers the certified commercial investment member designation through online learning and testing.
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23RD ANNUAL PIMA COUNTY COMMERCIAL REAL ESTATE MARKET FORECAST COMPETITION Tuesday, February 11, noon to 6:30 p.m. Tucson Marriott University Park 800 E. Second St.
RSVP by January 31 Members $80 Non-Members $100 Table of 10 $900
After February 1 Members $100 Non-Members $120 Table of 10 $1,000
Day of event $125
Contact Aaron Reid at (520) 382--8791 or sazccim@tucsonrealtors.org
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Photo: BalfourWalker.com
SPECIAL REPORT 2014
THE REGION’S BUSINESS MAGAZINE
Driving a New Economic
PARADIGM for Southern Arizona
TREO Chairman’s Circle provides insight, impact and influence for our future.
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for a Building economic prosperity requires a solid game plan, one that anticipates change on the horizon. It calls for a roadmap, a master plan for success. To help Tucson realize its economic prowess, Tucson Regional Economic Opportunities – or TREO – in 2007 created its Economic Blueprint to guide development efforts in the region. The 300-page analysis of Tucson’s assets established a framework for private and public sectors to work together to build prosperity, target industries that can shape our future and establish priorities. But much has changed in the region – and in the world – in the last seven years, and TREO is crafting a Blueprint Update to accelerate development efforts in this new economy. What’s different this time? The original blueprint helped TREO to identify the area’s economic drivers, strengths and gaps, while the update will focus on how to best leverage emerging opportunities, according to TREO leadership. The Blueprint Update will build on what has worked with the goal of shoring up areas where progress is still lacking. Committees made up of leaders from private, public and non-profit sectors – armed with input from the community – are studying the issues critical in build70 BizTucson
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New
ing the economy, and are developing an action plan for optimizing success. Perhaps the greatest challenge to future prosperity lies in identifying and supplying the pipeline of human talent required to meet today’s business demand. It’s a daily concern for some local employers.
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Today and in the future, the availability of skilled labor at all levels will drive all market decisions. –
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Joe Snell, President & CEO, TREO
Judy Rich, president and CEO of TMC Healthcare, said finding that human talent is critical to Tucson’s success. “As an employer of 3,300 people, I am always concerned about the availability of qualified candidates for our business,” she said. “Talent and workforce development are key components in building our local and regional economy.” Philip Tedesco, CEO of Tucson As-
sociation of Realtors, said the region is currently unable to meet the demand for skilled labor. “When companies are considering moving to the region, access to a skilled labor pool is a critically important part of the decision-making process,” he said. Joe Snell, TREO president and CEO, said strengthening our competitiveness is the main focus of the Blueprint Update. The updated Blueprint will take a “bold and bigger approach” by redefining the concept of “region” and how we will meet market needs, Snell said, which is critical for Arizona to compete in a global economy. At the annual TREO luncheon last fall, it was noted that there are about 150 key markets around the world, and that Arizona competes with about 75 of those “megapolitan” markets that are attracting successful economic enterprise. While Arizona historically has not embraced the concept of marketing shared assets, the rebranding of the region as the Sun Corridor – from Flagstaff south to the border at Nogales – is critical for Arizona’s success in a global market, business leaders contend. “How Arizona goes about proving that it has the means to meet the supply needed lies in redefining the market in the Sun Corridor, and not as individual www.BizTucson.com
BizPROGRESS
Economy By Mary Minor Davis
silos or markets,” Snell added. “Talent has options,” he continued. “Skilled people have options. They’ve got the front range of Colorado, the Austin-Dallas corridor, Route 128 in Boston, the LA-San Diego corridor and the global markets to choose from. It’s just good business to be part of the Sun Corridor. We have all the right assets.” Paul Bonavia, chairman and CEO of UNS Energy, Tucson Electric Power & UniSource Energy Services – which sponsored the first Blueprint and is also sponsoring the update – agrees. “If we don’t see ourselves as part of a larger megapolitan area, we won’t succeed.”
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If we don’t see ourselves as part of a larger megapolitan area, we won’t succeed.
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– Paul Bonavia, Chairman & CEO UNS Energy, Tucson Electric Power & UniSource Energy Services
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He said TEP’s support of this effort is just “good business.” “We’re the most local business in the world,” he said. “We’re only as strong as our community. For a company like TEP, being interested in creating wealth in our community is the most natural thing for us.” Within the Talent Committee, three areas will be explored – development of 21st century skills, where the talent gap lies from the employers’ perspective, and what the community can do to attract and keep young professionals. Identifying the types of jobs that go unfilled will be included in the work, to help define the steps needed to become more competitive. Healthcare, regional economic development, business environment and infrastructure are other critical issues to be addressed by the TREO committees. Success in these areas greatly determines succees in attracting talent, Snell said. He said while the first Blueprint was “wildly successful” in laying out the region’s first economic development vision, the update must clarify what success looks like in terms of the types of jobs needed. Snell and Bonavia hope that by expanding the collaboration – including industry participation and viewpoints – the process will send the message that
the prosperity of the community is dependent on contribution and ownership among all segments of society. “TREO is not a vending machine that you just put a couple of quarters in and jobs come out,” Snell said. “I hope that by engaging the community more deeply in this update, (everyone) will understand that we don’t outsource economic development in our region. We own it – this is a collective responsibility.” Committees are expected to submit recommendations to TREO by January, and the Blueprint Update is expected to be released in April 2014.
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Blueprint Update Sponsor: Tucson Electric Power Committee Leads: Healthcare Fletcher McCusker, CEO Sinfonia HealthCare Corporation Infrastructure Dennis Minano, vice chair, Sonoran Institute Talent Daisy Jenkins, president Daisy Jenkins & Associates Business Environment David Hutchens, president & COO, UNS Energy, Tucson Electric Power & UniSource Energy Services; and Omar Mireles, executive VP, HSL Properties Regional Economic Development Satish Hiremath, mayor, Town of Oro Valley
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TREO CHAIRMAN OF THE BOARD
Showcasing Our Strengths
Photo: BalfourWalker.com
By Mary Minor Davis
It’s been only three years since Guy Gunther and his family moved to Tucson from Denver, but already the VP and GM for Greater Arizona CenturyLink has a keen sense for Southern Arizona’s business assets and its potential to be a global market leader. Serving as TREO’s chairman of the board, Gunther is excited about the opportunities he sees not only for his company, but for Arizona’s economic success. “I stepped in just as some interesting things were happening,” he said, referring to the growing concept of the Sun Corridor, the proposed Interstate 11 project, recent business interest in Tucson and the Blueprint Update. “I see a lot of opportunity for growth, not only for CenturyLink, but also an opportunity to rebrand TREO and the region and establish a strong competitive market.” Rebranding is something Gunther is familiar with. Having been a part of Qwest Communications and the merger with CenturyLink in Colorado, he came to Arizona to showcase the business services offered by CenturyLink and grow market share. “From the CenturyLink perspective, we see a lot of opportunity for growth,” he said. “My role is to look for those additional opportunities to grow the business portfolio. I quickly realized that Tucson and Southern Arizona have a lot to showcase.” CenturyLink’s mission – improving lives by connecting the community and strengthening business – aligned well with TREO’s mission, Gunther said. “The challenge that I saw early on is the fractionalized nature of the community,” he added. “There are different groups out there that all want the best for the region, but I’m not sure that people connect how it all goes hand-in-hand.” As a newcomer, Gunther has read studies conducted by Arizona State University, Arizona Forward, Imagine Greater Tucson and others. “They show we share the same core values – moving forward environmentally, economically and socially. “I see the role of TREO as creating that coalition and seeking defined commonality with the ultimate goal of creating jobs and economic prosperity.” This cannot be accomplished by TREO alone. Gunther is reaching out to groups in the community – neighborhoods, businesses, government entities and other business groups. “We need a coalition that speaks with one voice so that those who are making the larger decisions hear us.” Supporting this effort is a TREO board of “relentless leadership,” Gunther said. “It is remarkable to me the people we have involved are spending time day in and day out because they care about this region and our success. That makes me very proud and it’s what makes it fun for me.” Biz www.BizTucson.com
Guy Gunther VP & GM, Greater Arizona CenturyLink
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TREO IMMEDIATE PAST CHAIR
Q: A:
The one constancy is change. Change in our tastes, preferences, wants and needs. The way a successful organization responds to change is through continuous workforce and talent development. The entity that is successful in this development secures a competitive advantage in attracting and retaining the greatest talent from a shrinking pool. If our region is successful in this effort, it will serve as a key driver to economic prosperity. But it’s not an easy assignment. The workforce from a demographic standpoint presents challenges to companies trying to stay ahead of the competition. That’s why it’s critical to attract a variety of businesses and industries that provide high-paying and diverse opportunities to the workforce.
Q: A:
Why do you invest in and support economic development initiatives?
Q:
Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
A:
Photo: BalfourWalker.com
What is your perspective on the importance of talent and workforce development as a key economic driver?
Q: A:
We rely on economic development as fuel for growth. Economic development provides communities with a growing revenue base that is an attraction for others looking for a stable and prospering community. Economic development allows a community to build a strong educational system and a healthy and sustainable infrastructure. One of the best things we can do for our children is to build a healthy and attractive community where they can raise their own children. This creates a sustainable pipeline of new employees that is vital to our success.
The TREO Blueprint is not designed to be a final solution or answer – I wish it was that simple. It is meant to be a framework that we can use to focus our efforts on economic development. We need this framework to focus our increasingly scarce resources in areas that result in the greatest payoff. I serve on the Talent Committee. If public and private sectors can get the right talent at the right time, the rest will fall into place. What is the outlook for the defense industry in 2014?
Stephen G. Eggen Retired CFO Raytheon Missile Systems
Government sequestration, budget pressures and general lack of progress on these issues in government will continue to put pressure on the industry. The survivors will be those who remain focused on the mission – providing the best products to our war fighters, on cost and on schedule. Companies like Raytheon – which are diversified in product offerings and relentless in the mission – have a strategic advantage. Biz
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TREO SECRETARY/TREASURER
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
The way Cox Communications brings information and entertainment to our customers is changing daily. We need employees who can deal with a dynamic product set and who can interact with customers whose expectations are also evolving rapidly. A home-grown workforce that can handle the complexities of telecommunications technology and effectively interact with and serve a diverse, experienced and demanding customer base is critical to our business needs today and into the future.
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Photo: BalfourWalker.com
Q: A:
Why does Cox Communications invest in and support economic development initiatives?
Every Cox Communications customer lives and works in our local market. Our business success is tied to the health and prosperity of our local economy. Economic development efforts are necessary to bring more jobs and industry to our region. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
How our community develops and delivers healthcare services is a foundational economic imperative. Our local community needs to have the best possible healthcare services in the region â&#x20AC;&#x201C; this is critical, not just to the health of our citizens, employees and friends, but to the health and well being of our local economy. What is the outlook for Cox Communications in 2014?
Cox Communications is and will continue to be a success story in Southern Arizona. Our products, services and locally focused workforce give Southern Arizona the telecommunications infrastructure needed for commercial and residential growth now and in the future. Going forward, we are well positioned to expand our operations and networks throughout the region and state.
Lisa Lovallo Market VP, Southern Arizona Cox Communications
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TREO LEADERSHIP
Laser Focus on Talent Gap By Mary Minor Davis
Joe Snell
Photo: BalfourWalker.com
President & CEO TREO
Joe Snell has seen tremendous change in his eight years at the helm of TREO. History, the Great Recession and global competition have reshaped his organization’s focus, with new paradigms in economic development bringing about innovative approaches to enhancing economic prosperity. “Arizona has never had to truly compete,” Snell explained. “Blessed with in-migration from 1957 into 2007, Arizona led the country in population growth and a certain amount of income growth – we held a lot of No. 1 rankings. Then the bottom fell out in 2007. The recession changed everything. We can no longer rely on wealth and in-migration.” The secret to success in this new economy is our ability to fill open jobs with a skilled workforce, Snell said. Talent attraction and retention is now the chief driver of the economy. Several thousand jobs go unfilled each year in our region because companies cannot find employees with the skills they need, Snell said. While TREO continues to aggressively recruit new companies and help existing ones expand, the economic development organization is helping to lead the charge in developing strategies that attract and retain talent that companies require. “The old days of recruiting companies and filling those jobs once they are up and running are over,” Snell said. “It’s a new world. We must recruit and develop talent if we want to win. We must help shape our community so that the best and brightest want to live here.” This is a new approach for economic development. Groups like TREO traditionally focused on deals with companies while workforce development groups focused on the supply of employees. The old model is no longer sufficient, Snell said. Both systems must now be connected for success. In this new role, TREO must serve as a “Match.com” – connecting companies with skilled employees. “We must bridge the gulf between the workforce supply system and the economic development demand system so they become one system,” Snell said. “That’s how we’ll win.” Key in this model is the creation of a region that is attractive to highly-skilled workers. “We must build a community where the most sought-after workers want to live and build their lives.” He said the region must have a megapolitan mindset, understanding that one of our greatest strengths is our location in the heart of the Sun Corridor, stretching from north of Phoenix south to Nogales. “We must combine our strengths with those of our neighbors to attract talent and new business,” Snell said. “The days of competing jurisdictions are over.”
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TREO CHAIRMAN’S CIRCLE
Q: A:
Why does Ventana Medical Systems invest in and support economic development initiatives?
Q: A:
Regarding the TREO Blueprint Update, why is this strategic planning initiative important to you?
It is the only way to succeed. Tucson and the region are hidden gems and we need to tell the world about our strengths. Economic development brings in new companies, people and resources to fuel innovation and technology breakthroughs that will benefit our community for generations to come.
First, we need an integrated Blueprint to ensure that the business community and government are aligned in the priorities. I serve on the Healthcare and Talent Committees. Like many employers in Southern Arizona, we find it challenging to attract and maintain a professional talent pool when complementary opportunities for new recruits’ spouses and partners are lacking. TREO’s Gateway Tucson program was formed to address these issues. The Talent Committee will provide strategies for other equally important issues – including working with our schools and universities to help ensure that our young people are developing the 21st century skills needed to meet tomorrow’s business demands.
Q: A:
What is the outlook for Ventana Medical Systems in 2014?
Strong and expanding. We are growing in every part of our business in every part of the world. We are the fastest growing business area within Roche Diagnostics. Our mission at Ventana is to improve the lives of all patients afflicted with cancer. We fulfill our mission through enabling accurate and timely diagnoses and customized treatment options for cancer patients. We are committed to advancing personalized healthcare by developing diagnostics for targeted new drugs. The value of this approach is rooted in positive outcomes for patients — saving lives and improving quality of life. With Ventana and the Roche Group together, there is no better company in the world to make this approach a reality.
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President & CEO
Ventana Medical Systems depends upon Southern Arizona’s strengths in science, engineering and skilled manufacturing, as well as a host of supporting professions. Our business is growing very quickly, so developing and retaining talent is a critical component of our success. If we are unable to bring in and keep the stellar talent we require, Ventana and other businesses could be at tremendous risk. We must make Southern Arizona attractive to the best and brightest in the nation and world.
Q: A:
Mara G. Aspinall Ventana Medical Systems, Inc.
What is your perspective on the importance of talent and workforce development as a key economic driver?
TREO CHAIRMAN’S CIRCLE
Q: A:
Q: A:
Q: A:
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
Our field requires an extremely skilled workforce. Our professionals must be knowledgeable and well-trained. They must be dedicated and compassionate. This combination is critical to a successful medical outcome for our patients. Recruitment of the right individuals – who together become a dynamic healthcare team – is important to our organization’s reputation. The ability of any healthcare system or medical practice to become a vital and respected community partner is intrinsically linked to its ability to build a workforce that shares its values and commitment to community. Why does Carondelet Health Network invest in and support economic development initiatives?
The most successful and stable economies in our country appear to be those in which major businesses help one another. The community’s overall economic strength lies in its business leaders sharing ideas, supporting one another’s growth, encouraging expansion by other potential employers, providing support and incentives for small business development, and working together to better the future outlook for all residents. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
As a Healthcare Committee member, I am encouraged by the incredible enthusiasm of the members of our group toward strengthening the well-being of this community. Carondelet made a commitment more than a year ago to move away from a focus on reactive medical care and toward a model that provides Tucsonans with avenues to proactively manage their health. We are committed to keeping the healthy well, working with at-risk patients to mitigate problems before they develop into chronic illnesses, and managing the chronically ill so they can live their very best lives. I see an interest among all members of our committee to make Tucson a healthier place to live and to build a reputation as one of the healthiest places in America.
James K. Beckmann President & CEO Carondelet Health Network
What is the outlook for your industry in 2014?
The healthcare industry and healthcare reform have taken center stage nationally. People are more aware of the status of their own health and the cost of managing their medical care. They are willing to educate themselves about both. I think 2014 will see greater focus on individual responsibility for one’s health and drive forward the concept of strengthening well-being as a way to manage healthcare costs in America.
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TREO CHAIRMAN’S CIRCLE
Q: A:
Q: A:
Q: Paul Bonavia
A:
Chairman & CEO UNS Energy, Tucson Electric Power & UniSource Energy Services
What is your perspective on the importance of talent and workforce development as a key economic driver?
To attract employers that offer quality, high-wage jobs, our community needs a highly skilled workforce that can fill those positions. We already have diverse educational resources with The University of Arizona, Pima Community College and other institutions. Our economy is changing, and opportunities emerge and develop over time. Our workforce needs to remain flexible to remain competitive. Why do UNS Energy, Tucson Electric Power and UniSource Energy Services invest in and support economic development initiatives?
As a public utility company, we rise and fall with the communities that we serve. We provide service here in the Tucson metropolitan area, our employees live here and our customers live here. Not only is this company’s livelihood tied to the community, so is the quality of life for our employees and their families. We are part of this community and we want it to succeed. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
Building a regional economic plan – or updating one, as we’re preparing to do – is an inclusive process that requires discussion among many participants with many different perspectives. It should spark discussion and collaboration between businesses, government entities, nonprofit organizations and residents of the community. That’s important because it gives members of the community an opportunity to identify their needs and how they can contribute to improving our economy. The original blueprint gave us a foundation and an action plan to follow. This update is important because we’ve seen many changes in the global marketplace and emerging opportunities for our region in international commerce. Aspects of our economy are showing signs of improvement and projections suggest that Arizona’s economic growth will outpace the national average in the coming years. The Blueprint Update will help our community to pursue these developing opportunities. What is the outlook for your industry and business in 2014?
New environmental regulations and developing technologies will continue to affect our industry and how TEP delivers the most cost-effective, reliable service to our customers. We’re making significant progress toward diversifying our generating fuel mix. Although we anticipate generally flat retail sales next year, we continue to focus on working efficiently, keeping our operating expenses down and investing in our electrical system to ensure we continue to meet or exceed our customers’ expectations.
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Q: A:
TREO CHAIRMAN’S CIRCLE
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
Let’s face it – big companies moving to town are the superstars that grab the headlines, while workforce development efforts remain in the background. Sexy or not, workforce development is the foundation of the local economy. Our prosperity is tied to whether our residents can find work and whether companies can hire our residents. Building productivity in a time of increased global competition and accelerating innovation is a complex undertaking that demands focus and investment. We must keep up with the skills required to capitalize on emerging technologies.
Q: A:
Why does Pima County invest in and support economic development initiatives?
As a major funder, Pima County supports TREO’s economic development efforts because the organization represents a “one stop” service that clients demand. It has long been recognized that fragmented, “go it alone” approaches will lose out every time to a regional, cohesive approach that emphasizes the strength of a community – regardless of jurisdictional boundaries. The reality is that local jurisdictions have far more in common than they have apart. A unified voice is key when competing with other communities that may have greater resources and name recognition.
Q: A:
Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
Sharon Bronson Vice Chair Pima County Board of Supervisors
When the Blueprint was first developed, we were in a very different economic environment, so I am highly engaged in revisiting some of the key features, such as developing local talent. We are no longer competing with each other locally or even across the state. We’re competing globally. That changing dynamic will force us to start thinking as partners while finding our own niche. That’s why I am pleased that we’ve been successful in several grants that leverage our border connections – both in strengthening our logistics positioning and in developing a strategic plan for manufacturing.
Q: A:
What is the outlook for Pima County in 2014?
Uncertainty is not helpful in a recovering economy, but I am optimistic about 2014 at a local level. Energy is building around our southern corridor, providing new opportunities for growth around our strengths – including military & defense, international trade and new technologies. Our partnerships are strong with The University of Arizona and Pima Community College, which are committed to growing the talent pipeline that companies require. We can’t be ambivalent about seizing opportunities that ultimately will help fuel the high-paying, science-based jobs we seek. Biz
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TREO CHAIRMAN’S CIRCLE
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
Clearly all metropolitan areas are in a race to add primary industries and the resulting jobs and wages. It is increasingly evident that the depth and breadth of the local talent pool is the primary differentiating factor for companies deciding where to locate. For our region to be competitive going forward, it is imperative that we understand this and take the necessary holistic actions to be competitive – not only regionally, but nationally and internationally. If we are to ever take advantage of the potential opportunities the growing Sun Corridor has to offer, we must develop the strategies and tactics necessary to attract and retain world-class talent. Economic development in Southern Arizona will stagnate without a concerted effort in this area.
A: James H. Click, Jr. President Jim Click Automotive Team
Q: A: Q: A:
Why does the Jim Click Automotive Team invest in and support economic development initiatives?
Long-term economic development is the lifeblood that a business needs to grow and provide adequate capital returns. Failure to continually invest in economic development efforts exposes businesses to the potential of “the well drying up.” This is not a recipe for a vibrant region. Choosing to not invest in economic development is perilous. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
The Talent Committee is a critical piece in the blueprint. The future of our region depends on the development of the talent pool. What is the outlook for the automotive industry in 2014?
The auto industry continues to rebound consistently from the depths of the recession. We anticipate that 2014 will follow that trend. In fact, we anticipate an even stronger growth rate year over year. The average age of the U.S. vehicle fleet is more than 11 years, a number that continues to grow. Clearly the need to replace aging vehicles is significant as businesses and consumers make those purchase decisions.
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Q:
TREO CHAIRMAN’S CIRCLE
Q: A:
Q: A:
Q: A:
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
We are now in a knowledge economy, where industries follow the workforce as opposed to the other way around. With the increasing pace of innovation and the intensity of global competition, the quality of an organization’s workforce has become a prime determinant of whether it survives or fails. Likewise, the quality of a region’s workforce is a prime determinant of whether or not there are plentiful high-wage jobs and a strong tax base. Why does Arizona State University invest in and support economic development initiatives?
ASU is a public university whose mission – as a public trust – includes serving as an economic engine for Arizona. We produce more highly skilled college graduates – by orders of magnitude – than any other institution. That makes us a major supplier of the human capital necessary for Arizona’s economic growth and prosperity. We are also interested in making sure there is an ample supply of high wage, attractive jobs so students will remain in Arizona after they graduate.
Michael Crow
Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
President
Businesses in Tucson and throughout the Sun Corridor are having trouble finding qualified employees because of the level of education or training required in the knowledge economy. To address this, all elements of the Arizona educational pipeline must be strong, including K-12, community colleges and universities. Quality-of-life issues are also important to the modern workforce, especially the “creative class” that Richard Florida has shown to be a key driving force for economic development in U.S. cities. Quality-of-life issues include having libraries, museums, performing arts venues, symposia and lectures, as well as continuing education for employees and educational options for their children.
Arizona State University
What is the outlook for ASU and higher education in 2014?
At ASU, we have two principal products – education and research. In 2012, U.S. college enrollment declined for the first time in six years. In Arizona, enrollments have continued to increase – due to an overflow of qualified students from California combined with moderate tuition increases and high levels of financial aid for those with financial need. On the research front, cuts in federal funding are an issue for all research universities. At ASU, we are continuing to compete for and win federal projects and programs at a high level, and we are diversifying our portfolio by pursuing corporate and international projects.
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TREO CHAIRMAN’S CIRCLE
Q: A:
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
The knowledge-based economy we face today is considerably different than the economy of the past where skills could be quickly acquired and utilized in a specific trade. Companies are attracted to potential employees who are able to learn new skills and drive the inevitable changes in disciplines and technology through innovative and synergistic approaches to the challenges of the 21st century. Why does The University of Arizona invest in and support economic development initiatives?
The UA is committed to developing Arizona into a dynamic leader in the global economy. We already have world-class industry and businesses in biosciences and healthcare, astronomy, aerospace and other fields. With economic growth and innovation, the people of Arizona can build on this foundation to create job security, adequate and affordable healthcare, a thriving culture and community, top-quality education and a fulfilling life. We must work together to break with conventional business models and diversify sources of revenue for higher education and government. Building economic partnerships will ensure that Arizona is a viable destination for industries to prosper and to benefit from each other’s successes.
A: Ann Weaver Hart President The University of Arizona
Q: A:
Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
For the UA to be successful in reinventing our land grant mission for the 21st and 22nd centuries, it is critical that we work with our partners to ensure our teaching and research target the real-world problems faced by Southern Arizona’s residents, families, businesses and leaders. I see TREO’s Blueprint as instrumental in ensuring synergy between the UA’s strategic priorities and those of the Tucson and Southern Arizona region to build on existing strengths and create new areas of economic development. What is the outlook for UA and higher education in 2014?
Higher education faces many challenges. However, by generating a supportive environment where students and faculty can develop creative solutions to real-world problems, the UA will be on the forefront of educating a new, integrative workforce equipped with a global mindset. Our faculty will continue leading the way in innovative research and creative inquiry. The UA’s strategic vision of engagement, innovation, partnership and synergy models Arizona’s path to meeting the challenges of the 21st century, and with our new academic strategic plan – Never Settle – 2014 promises to be an outstanding year.
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Q:
TREO CHAIRMAN’S CIRCLE
Q: A:
Q: A: Q: A:
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
Workforce quality is the crucial factor in the success of individual businesses and – collectively – in Tucson’s ability to provide high-skill jobs for its residents. Adults who can write clearly, think critically and compute accurately will give Tucson the edge it needs to be a successful player in a brutally competitive 21st century global marketplace. Why does Pima Community College invest in and support economic development initiatives?
Tucson is among the poorest cities in the United States. That fact alone should animate any publicly funded institution to develop strategies to provide those in need with the opportunities for leading more prosperous lives. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
Educational excellence is crucial to PCC because all educators – from pre-K through college – should have as a common goal producing college- or career-ready adults. Education must be integrated to ensure that students have the ability to progress successfully at the next level. PCC will continue to work with local K-12 districts and the state’s public universities to best synchronize our efforts for the benefit of our students.
Lee Lambert Chancellor Pima Community College
What is the outlook for PCC and higher education in 2014?
Technological advances and a push for greater accountability are ushering in a new era of rapid change in higher education. The challenge for institutions such as PCC is to channel these transformative forces so that we can improve services to our students and the community. For example, the classrooms and labs in our new building at Northwest Campus – scheduled to open this spring – are hard-wired with the latest interactive-learning technologies. Similarly, knowing that 20 percent of our students took at least one online class this year, we are exploring the potential of Massive Open Online Courses to enhance learning and give our students affordable education options. Tying government funding of higher education to schools’ performance will be a topic of public policy debate for the foreseeable future. PCC has participated in a pilot program to develop measures of accountability that accurately capture the unique role of community colleges in the education pipeline. We will vigorously advocate at all levels of government for sensible reforms that put students first.
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TREO CHAIRMANâ&#x20AC;&#x2122;S CIRCLE
Q: A:
What is your perspective on the importance of talent and workforce development as a key economic driver?
Tucson has not been an easy place to recruit big-league talent, despite our weather and our quality of life. Recruits often are concerned that their significant other will have difficulty finding quality employment here. They are often concerned about their ability to move to another employer in the same sector. Our sectors are not very deep. We need to develop talent, recruit our colleagues and create a rich spin-off environment so risk-takers see upward opportunity in our region. Nothing is more important.
A: Q: A: Fletcher McCusker CEO Sinfonia HealthCare Corporation
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Why does Sinfonia HealthCare invest in and support economic development initiatives?
A high tide raises all ships. If Tucson thrives and grows, our business grows. The government has not proven to be an effective economic driver, and these efforts are better off in the private sector. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
I chair the Healthcare Committee, which is an inspired group of system executives. We believe the time is right for Tucson to become a major healthcare destination, focused on wellness and prevention, education and state-of-the-art medical care systems. What is the outlook for the healthcare industry and Sinfonia HealthCare in 2014?
Healthcare in 2014 is facing a revolution. As the Affordable Care Act rolls out, millions of people will become eligible for insurance. Home healthcare will grow dramatically as patients and payers look to innovative new delivery models based on the new demand.
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What is your perspective on the importance of talent and workforce development as a key economic driver?
An educational system that prepares students for employment with specific skills identified by the business community is critical to a healthy business climate. Hiring locally develops a broad community attachment, is less costly for businesses and keeps talented young people in our communities. K-12 and higher education must produce graduates with general and specific employment skills. Why does your business invest in and support economic development initiatives?
CopperPoint Mutual Insurance Company – formerly SCF Arizona – believes that a healthy and growing business climate provides more opportunity for our company, broader support to the economic development and cultural strength of our communities and is good for our future. Healthy businesses produce a stronger tax base and volunteer base. Having a diverse business base provides more employment opportunities for our families and our children. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
As a member of the Infrastructure Committee, I can’t emphasize enough our support of the extension of Interstate 11 south to Mexico’s border. The issue is more pressing today than it was 20 years ago when the North American Free Trade Agreement – or NAFTA – was in its infancy.
Judy Patrick Chairman of the Board CopperPoint Mutual Insurance Company (formerly SCF Arizona)
This corridor has the highest potential of any other in the state to become a successful import distribution zone. With its proximity to interstates, Tucson International Airport, the Port of Tucson and adjacent rail it is critical that we make significant investments in this kind of public infrastructure. Thousands of jobs depend on trade with Mexico and thousands more will be created if we commit to extending a gateway that already accounts for more than $20 billion worth of imports and exports annually. This is a cornerstone of the Blueprint Update and it embodies a truly sound economic development strategy.
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What is the outlook for your business in 2014?
CopperPoint’s business is dependent on the health of Arizona’s business community. We believe 2014 will continue with slow but steady business expansion and employment growth. Our efforts will continue to help existing businesses expand while we work on improving our education and transportation systems to encourage business relocations in the future.
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Judy Rich President & CEO TMC Healthcare
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What is your perspective on the importance of talent and workforce development as a key economic driver?
As an employer of 3,300 people, I am always concerned about the availability of qualified candidates for our business. From the ability to read all the way to the mastery of highly technical skills, healthcare is counting on the community to train our future workforce. Talent and workforce development are key components in building our local and regional economy. Why does Tucson Medical Center and TMC Healthcare invest in and support economic development initiatives?
A strong, healthy and vibrant community is critical to us as we recruit talent from all over the country. Growth is essential to sustain our goals as a provider of healthcare. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
The Healthcare committee is bringing together healthcare leaders from across the region in a new and exciting collaboration that I have never before seen in Tucson. Our strength lies in our collective good work, and I am encouraged by our efforts in this area that are critical to the future growth and success of our region. What is the outlook for your industry and business in 2014?
We are expecting many changes in 2014, primarily from Medicaid expansion and the Health Information Exchanges. The shift from simply paying for healthcare to obtaining value in healthcare is strongly influencing our perspective and driving our plans for the future.
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What is your perspective on the importance of talent and workforce development as a key economic driver?
Now more than ever, having a deep, quality workforce is a priority because employers face increasing competitive pressures in this 21st century global economy. Education and skills are vital to economic success. Fulfilling that requirement locally makes K-12 education, technical training and secondary education the keys to the region’s long-term economic strength. Currently, the region cannot meet the demand for skilled labor. Workforce development and retention is the most critical link to retaining existing businesses and attracting new companies that provide high-wage jobs.
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Why does the Tucson Association of Realtors invest in and support economic development initiatives?
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Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
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The Tucson Association of Realtors invests in economic development initiatives to strengthen the region. Increasing capacity, developing additional economic drivers and putting expanded infrastructure in place supports future growth. Increased public/private partnerships and ongoing investment from the business community will continue to be critical to our success.
Serving on the TREO Infrastructure Committee has been important to me and the Tucson Association of Realtors because Southern Arizona’s successful future will rely heavily on an expanded regional transportation plan. The proposed Intermountain West Corridor has been identified as the potential primary Arizona gateway to Mexico for rail, truck, and passenger traffic through Nogales, based on usage and infrastructure investment. The concept is to connect air, freight, trucking, and economic activity centers in a major trade corridor stretching from Canada to Mexico. The most critical infrastructure roadway project will be linking Las Vegas and Phoenix, the two largest cities in the nation not connected by an interstate highway, before running south through Tucson all the way to the port of Guaymas, Mexico. Positioning Tucson as a multimodal transportation hub will ensure its future viability and competitiveness.
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Philip B. Tedesco CEO
What is the outlook for your industry in 2014?
The real estate industry in Tucson is showing positive signs. Home prices are increasing, as are total sale volume and total unit sales. A more traditional market is developing as we come out of the worst economic downturn in years. The Tucson Association of Realtors saw a 34 percent decline in membership over the last six years. The downturn was managed strategically, and the association is well-positioned to continue to be successful in the coming years.
Tucson Association of Realtors
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What is your perspective on the importance of talent and workforce development as a key economic driver?
We are fortunate to have The University of Arizona in our backyard as an incubator for developing talent and expertise in the health professions and biomedical sciences. We must recruit and retain the best of these new physicians, nurses, pharmacists and researchers in Southern Arizona. At The University of Arizona Medical Center – South Campus we have expanded our residency spots to better serve the community and offset an impending physician shortage in Arizona. We need even more residencies to develop home-grown talent in our state. The average healthcare worker and physician are getting close to retirement. Who will take care of us? Healthcare will continue to be one of the top job-creating industries. There is tremendous opportunity to contribute to economic development and job creation through teaching and training our future healthcare workforce.
President & CEO The University of Arizona Health Network
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Why does UA Health Network invest in and support economic development initiatives?
When I think about economic development, I think about education. Excellent healthcare requires a highly educated, skilled workforce. We need strong schools and we must support education at all levels. Tucson can’t hope to attract the best and brightest without it. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
The Blueprint Healthcare Committee is important to our region. This committee, which includes the major providers in Tucson, provides a forum for us to look at health and healthcare issues from the community perspective. It is a great opportunity for us to network and explore initiatives that will improve the health of our community and examine opportunities to decrease healthcare costs. What is the outlook for UA Health Network and your industry in 2014?
Healthcare reform is here. That brings challenges and opportunities. Thousands of previously uninsured Americans will now be able to afford health insurance, which is a great thing. We may see increased demand for medical services by a population that has been doing without them. We are gearing up to be ready to meet that pent-up demand. Additionally, we are investing millions of dollars in technology. UA Health Network recently implemented an integrated electronic health records system that will make our care more coordinated and improve patient safety and quality. More than 10,000 physicians and staff members received training on this system, and we expect it to translate into improved patient care.
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Dr. Mike Waldrum
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What is your perspective on the importance of talent and workforce development as a key economic driver?
Businesses look for three factors when determining their next corporate move – competitive tax structure, regulatory environment and access to highly skilled talent. Arizona is known as a top state for the quality and availability of its workforce – ranking No. 2 in the country and No. 1 in higher education degree opportunities. We are fortunate in that we have world-renowned university systems and community colleges graduating the best-qualified and most brilliant minds in high-demand disciplines. But we must continue to align industry and academia to better prepare our workforce. That’s why the Arizona Commerce Authority (ACA) continues to execute its Sector Strategies, which have become a national model. The strategies provide an ongoing commitment to bringing together industry and education to cultivate a highly skilled workforce.
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Why does the ACA invest in and support economic development initiatives?
The ACA was created by historic legislation – the Arizona Competitiveness Package, which was a bold plan that overhauled our tax system, streamlined our regulatory structure, developed a portfolio of incentives and honed our focus on business recruitment, expansion and creation. The ACA is the state’s premier economic-development arm. We are committed to attracting quality companies to the state and helping existing companies to create quality jobs for the economic health and well-being of Arizona.
Sandra Watson President & CEO Arizona Commerce Authority
Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
I am proud to serve on TREO’s Business Environment committee, focusing on strengthening Arizona’s competitiveness, business-friendly environment, incentives and more. To attract highvalue, high growth-potential companies, Arizona must improve upon its competitiveness and incentive offerings. What is the outlook for your agency in 2014?
I could not be more excited about the future. The ACA is working with more than 400 companies that are in various stages of expansion and relocation decisions. We are working on bold initiatives that I believe will elevate Arizona as a leader in economic development. The ACA serves as a corporate connector, a problem-solver for the state and will continue to be a go-to leader in credible data for businesses. We are also adopting an idea that I call “economic development without boundaries” – one that capitalizes on Arizona’s assets and leverages the attributes of our neighbors, specifically California and Mexico. We are building an action plan to capitalize on these strengths. Biz
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Q: A: Greg White VP of Finance Raytheon Missile Systems
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What is your perspective on the importance of talent and workforce development as a key economic driver?
Strengthening the talent pipeline is critical to our success as a region. We are fortunate to have one of the nation’s finest research universities right here in Tucson, producing some of the nation’s top talent. The University of Arizona is considered a top tier research institution. Many people don’t realize it, but as a company, Raytheon recruits more engineers from the UA than any other university in the nation. From our sophisticated high-tech research to our commitment to improving educational opportunities for students throughout Tucson, we work closely with the UA on a daily – if not hourly – basis. Raytheon believes the state must adequately fund our higher educational intuitions to build our talent pool to not only benefit our company, but all Arizonans. Why does Raytheon Missile Systems invest in and support economic development initiatives?
Economic development is critical to our future. It’s imperative that our elected officials and business leaders continue working together. If Southern Arizona is to continue growing and strengthening its economy, we must form a bipartisan team to make our part of the state attractive to existing businesses and new ones. Whether it’s improved tax incentives, upgrading our infrastructure, strengthening our educational commitment or developing a new aerospace & defense corridor, these are investments in Southern Arizona’s future we must all support. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?
It’s important to me to serve on TREO’s Business Environment Committee as it monitors the pulse and supports growth of the region’s businesses, while keeping an eye on the future. Raytheon contributes its perspective as an international export business, and we work to ensure Tucson is attractive to new businesses while striving to retain and provide appropriate support for those already here. What is the outlook for Raytheon Missile Systems in 2014?
We continue to perform well for our customers around the globe. There are certainly challenges – including sequestration, the government shut down and uncertain defense budgets – but with a broad portfolio of products, cutting-edge technology and incredible employees, we are well positioned now and in the future.
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TREO LEADERSHIP
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Bonnie Allin President & CEO Tucson Airport Authority
Duane Blumberg Mayor Town of Sahuarita
Kevin Burnett Senior VP & CFO The Sundt Companies
Vision for Economic Development
Vision for Economic Development
Vision for Economic Development
Enhancing opportunities for growth and employing citizens in living-wage jobs is critical to the region’s prosperity, said Allin, who serves on TREO’s Infrastructure Committee. Tucson International Airport is one of the community’s key economic drivers, contributing $3.2 billion to the local economy annually and supporting 35,000 jobs. She sees TIA is an important component in the multi-modal logistics center that will promote Southern Arizona as a premier location for international business development.
Transportation infrastructure will be a key factor in the growth and development of Southern Arizona and the Sun Corridor, said Blumberg, who serves on TREO’s Infrastructure and Regional Economic Development committees. He believes it’s important for the region to reach consensus on projects – even when there are greatly differing viewpoints – and TREO plays a major role in the leadership of these issues.
The Infrastructure Committee, of which Burnett is a member, is working on initiatives to support infrastructure projects in Southern Arizona that are critical to economic growth. These include the proposed Interstate 11 corridor and area transportation improvements planned for the next five to 10 years. The main challenge, Burnett said, is identifying and obtaining federal, state, local and private sources of funding to make these projects a reality.
2014 Industry Outlook
The future for aviation contains challenges, particularly with regard to passenger air service due to the slow economy and changes in airline business models. Community involvement will be necessary to move ahead through the coming years, she said.
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Recent upticks in economic graphs are reflected in increased business activity in Sahuarita. Developers have resumed investing in additional housing units and amenities, and several new businesses are opening to serve the community.
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Kathy Byrne Executive Director El Rio Community Health Center Byrne, who serves on the Healthcare Committee, is a graduate of Georgetown University School of Foreign Service. Before she came to El Rio, Byrne worked for Carondelet Health Network, where she was responsible for strategic planning and new program development. She served as president and CEO of Mercy Care Plan, a joint venture of Carondelet and St. Joseph’s Hospital, and was assistant director with the state Medicaid program.
2014 Industry Outlook
Burnett believes the commercial construction market in the Tucson area and the state will remain slow in 2014 due to continued governmental budget pressures that limit the number and size of projects awarded. He sees private sector construction improving slowly, mostly in single family and multifamily residential housing and developer-built student housing.
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Bruce Dusenberry Business Development Consultant Suddath Relocation Systems President & CEO Horizon Moving Systems Vision for Economic Development
Dusenberry serves on TREO’s Business Environment Committee, which explores ways to better support political and business leaders who make decisions that are in the best interest of the community. Initiating and continuing positive communication between these important groups is essential in attracting new business and talent to the region in an increasingly competitive global market and to ensure a healthy business environment and quality of life for residents. 2014 Industry Outlook
The housing market crash experienced throughout the country during the recent recession had a harmful impact on the relocation industry. However, increased business volume seen over the past two years suggests continuing growth in 2014.
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Duane Froeschle President Alliance Bank of Arizona Vision for Economic Development
A frank assessment of the competiveness and responsiveness to existing or incoming employers in our area is necessary, said Froeschle, who serves on the Business Environment Committee. He believes clarity will help private and public leaders work together to enhance the environment for growing job opportunities. He hopes this assessment can be referenced in conversations throughout the community to establish a clearer understanding of the importance of maintaining a business-friendly environment. 2014 Industry Outlook
While Froeschle recognizes the existence of several national economic threats in the banking industry, he believes many businesses have improved their operations and that the region is positioned to lead the economic recovery.
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Ed Hadley President, Southwest USA Walton Development and Management Vision for Economic Development
With Walton’s ownership of more than 10,000 acres in Arizona – primarily in the Sun Corridor – Hadley has the opportunity to make a difference in the area’s development. He believes that Arizona’s success in competing in a global economy depends on its ability to plan for and invest in the region’s infrastructure needs. Hadley, who serves on TREO’s Infrastructure Committee, recognizes the importance of sustainable planning that is both flexible and scalable to accommodate the demands of Arizona’s diverse and improving economy. 2014 Industry Outlook
Housing and land development look positive, although Hadley said growth will continue to be gradual and highly concentrated in core submarkets until employment expansion warrants normal growth absorption for all real estate uses.
Mike Hammond President & CEO Cushman & Wakefield ǀ PICOR Commercial Real Estate Services Vision for Economic Development
Hammond serves on the Infrastructure Committee because of its vital role in the region’s economic growth. If the region is to provide a vibrant community offering quality jobs – for today’s workers and tomorrow’s – the region must strategically invest in new infrastructure, he said. 2014 Industry Outlook
Tucson and Southern Arizona depend heavily on government spending, which is not likely to increase significantly in the near term and could drag down the economy. Hammond said the private sector is rebounding, however, particularly in housing. He believes our proximity to Mexico – as well as the recent burst in activity from the bioscience and mining industries – will help our economy. Overall, his outlook is for slow growth in 2014.
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William Harris President & CEO Science Foundation Arizona
Satish Hiremath Mayor Town of Oro Valley
Ed Honea Mayor Town of Marana
Harris leads SFAz, a nonprofit organization that was created in 2006 from the collaboration of Southern Arizona Leadership Council, Greater Phoenix Leadership and the Flagstaff 40. Its goals are to invest in scientific and engineering areas of economic importance to Arizona, facilitate collaborations between research institutions and industry, support education in science, technology, engineering and math, and attract and retain world-class jobs and talent – much the same as TREO’s mission and work.
Vision for Economic Development
Vision for Economic Development
Since he’s been involved with TREO, Hiremath, who leads the Regional Economic Development Committee, said he has come to understand that when a project lands in a particular jurisdiction it benefits the entire region. And regardless of how much private and government sectors might want to work independently, they are very much intertwined and need to be open to partnerships.
Because of his belief in growing the local economy, Honea is dedicated to his work on the Business Environment and Regional Economic Development committees. If we fail to create an atmosphere in our region that is good for business, we are doomed for failure, Honea said. As a leader in economic growth, TREO will continue to alter its business model as needed to ensure long-term success for the Tucson metropolitan area, he said.
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2014 Industry Outlook
Hiremath reported a strong outlook for Oro Valley, with rapid expansion anticipated for 2014 based on growth indicators in all sectors. The town is making strides in business space availability, residential growth and private capital investment. Oro Valley plans to continue its focus on the high-tech and bioscience corridor.
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2014 Industry Outlook
The Town of Marana is excelling in housing and business starts and expects that to continue in the coming year.
David Hutchens President & COO UNS Energy, Tucson Electric Power & UniSource Energy Services Vision for Economic Development
Hutchens, who co-leads the Business Environment Committee, said the original Blueprint helped TREO to identify the area’s driving industries, strengths and growth opportunities, while the update will focus on how to best take advantage of emerging opportunities. 2014 Industry Outlook
TEP is pursuing plans to diversify its generation portfolio, which includes using fewer coal-fired resources, purchasing more natural gas-fired resources, expanding the use of renewable resources and looking at the most cost-effective options available.
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Daisy Jenkins President Daisy Jenkins & Associates
Gregg Johnson Campus Director University of Phoenix
Bill Kelley CFO Diamond Ventures
Vision for Economic Development
After graduating from the University of Utah, Johnson became a Navy pilot and then directed church educational programs. He served as a school administrator in Utah before joining the University of Phoenix, where he leads the six Southern Arizona campuses. His responsibilities include overseeing enrollment, finance, student services and academic affairs. Johnson serves on the Talent Committee, and is active in the community, working with a number of organizations, including Tucson Hispanic Chamber of Commerce, Community Food Bank and Boys & Girls Clubs of Tucson.
Vision for Economic Development
As the lead of the Talent Committee, Jenkins said identifying the challenges and opportunities for talent – or what she calls human capital development – is important to the Tucson region. Talent is a key driver of economic development, and the region must create an environment that both attracts and retains top talent in skills, aptitude, creativity and innovation, she added. The committee’s goal is to keep University of Arizona graduates here and to ensure that a talented workforce becomes a competitive advantage for the Tucson region. This will be achieved by cooperation and collaboration among all sectors of the community, including academic and business populations, city and county governments and numerous local organizations that have initiatives related to economic growth and development.
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Kelley serves on the Business Development and Infrastructure committees, which he believes are two of the most critical issues for Tucson’s future. With his commitment to TREO, Kelley is striving to help attract employers in sectors that will broaden our employment base with higher-paying jobs. His involvement with the Infrastructure Committee is also focused on the long-term future of the region by identifying investment in projects that are necessary to attract such employers. 2014 Industry Outlook
Kelley reports that Diamond Ventures is positioned to take advantage of the recovering real estate market and is actively developing and investing in projects for 2014 and beyond. This includes both residential and commercial development in the Tucson area.
Adriana Kong Romero Senior VP, Tucson Market President Bank of America Vision for Economic Development
As a member of the Talent Committee, Kong Romero embraces the work because she understands that retaining and attracting key talent is important to the growth of Tucson. The committee is identifying gaps, misconceptions and opportunities and working with businesses and local leaders to create a strategy to grow talent, thus building a stronger region economically. 2014 Industry Outlook
Romero sees a positive outlook for financial institutions in the coming year. Specifically in the case of her employer, she’s noticing a continued focus on helping customers attain their financial goals. She feels that this commitment helps drive the economy – on a global, national and local basis.
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Steve Lace Past President Tucson New Car Dealers Association
Xavier Manrique Senior VP, Arizona Regional Commercial Banking Office Wells Fargo Bank
Lace, who serves on the Blueprint Talent Committee, is VP of Royal Automotive Group & Lexus of Tucson. Lace is responsible for the operations of the company’s eight locations and seven new vehicle franchises. He sees a variety of new products and technological advances from automobile manufacturers continuing to grow, which will result in more niche products at reasonable price points. Lace is a former board member of Tucson Medical Center Foundation.
Vision for Economic Development
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Lawrence Mehren President & CEO Accelerate Diagnostics Vision for Economic Development
Frances McLane Merryman VP, Wealth Strategies Group The Northern Trust Company
With TREO’s focus on Southern Arizona’s economic expansion through the bioscience and solar industries and Wells Fargo’s involvement in funding for technology and science, Manrique is excited to serve as an Innovation liaison. Since 2007, Wells Fargo has funded $21 billion for clean technology nationwide, including solar and wind projects.
As a small company competing with multi-billion-dollar international giants, one of the most important competitive advantages is rapid innovation, Mehren said. And at the core of rapid innovation are people … great people. With them, Accelerate – and the region – can compete, win and build a leadership position in a valuable market, he said. Without them, we will struggle.
Vision for Economic Development
2014 Industry Outlook
2014 Industry Outlook
2014 Industry Outlook
Despite a challenging economy, Wells Fargo’s loans and deposits are experiencing strong growth, and credit quality continues to improve, according to Manrique. Increased small business optimism and a dramatic improvement in household net worth are additional positive signs of recovery. Housing is also showing strong momentum going into the future.
Our industry is being shaped by legislative, demographic and economic changes beyond our control. In the end, however, we believe that products that offer real solutions to critical problems will always find a ready market. Our products do just that, and combined with a great team, an innovative pipeline and solid investor support, we are confident that the future for Accelerate Diagnostics is bright.
Northern Trust achieved its objectives of growing and improving productivity in 2013, allowing for a stronger financial future. The financial markets in general, she reported, are projected to show steady and stronger growth in the coming year, assuming political discord in the U.S. government does not result in another standoff. The European economy is expected to show a slow recovery, and China’s growth data has improved in recent months.
Winter 2014
Merryman serves as an Education liaison because she believes that providing an outstanding educational environment is critical in developing a qualified workforce to fill 21st century jobs and raising the wealth of our region. The communities that can educate, attract and retain human capital will come out ahead.
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Dennis Minano Vice Chair Sonoran Institute
Omar Mireles Executive VP HSL Properties
Vision for Economic Development
Mireles manages the property portfolio for HSL Properties, a real estate investment firm with a focus on apartment investing, development and management. HSL is the largest apartment-community owner and operator in Southern Arizona and is answering the economic demand for more rental housing with the development of three new luxury, energy-efficient apartment communities. Mireles coleads the Business Environment Committee and serves on the board of directors of Arizona Multihousing Association, Salpointe Catholic High School, Tu Nidito Children and Family Services, Tucson Airport Authority and Tucson Conquistadores.
Infrastructure is fundamental to the region’s ability to preserve, expand and attract businesses of all types and the jobs they represent, said Minano, who leads the Infrastructure Committee. Infrastructure is foundational to economic prosperity for future generations, and with Tucson’s high tech and competitive international marketplace, delivery of raw materials and speed to market of finished products is a deciding factor in determining where businesses expand, he added. 2014 Industry Outlook
Minano said that the federal government and confidence in government will determine if we can expect something other than a snail’s pace of growth in the near future.
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Farhad Moghimi Executive Director Pima Association of Governments/Regional Transportation Authority Vision for Economic Development
Moghimi sees community leadership and cooperation as key components in helping to drive the region and the Sun Corridor toward its fullest economic capacity. He believes that supporting efforts to hear and explore new ideas, expand local industries and encourage more local startup businesses will influence community pride and an improved standard of living. The community must strive to improve education and focus on generating better paying jobs, he said. 2014 Industry Outlook
Pima Association of Governments has a full plate for the future, particularly with the 20-year, $2.1 billion regional transportation plan. Moghimi said a solid transportation infrastructure goes hand-inhand with a strong economy.
Tony Penn President & CEO United Way of Tucson and Southern Arizona Vision for Economic Development
One of the most important objectives of the Economic Blueprint for Penn is the pursuit of excellence in educational systems that will enhance our ability to support growth and innovation in existing companies and to attract new businesses. He feels privileged to serve as an Education liaison involved with educational issues that prepare the region’s workforce for the jobs of today and tomorrow. This requires an all-inclusive effort between educational systems, government and businesses sharing the responsibility for workforce development. 2014 Industry Outlook
Penn said the outlook for United Way of Tucson and Southern Arizona is optimistic, as it continues to serve as the backbone organization in the effort to create large-scale positive social change.
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Virgil Renzulli VP, Public Affairs Arizona State University
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Walter Richter Administrator, Corporate Public Affairs, Southern Arizona Division Southwest Gas
Jonathan Rothschild Mayor City of Tucson
Keri Silvyn Partner Lazarus, Silvyn & Bangs Vision for Economic Development
TREO’s Talent Committee, on which Renzulli serves, plays an integral part in Arizona’s economic growth, he said, because the need for highly trained and skilled workers will increase at a time when employers are experiencing a labor shortage. He said the committee can help identify what the business community needs from post-secondary education and vice versa so that goals are met for both.
Vision for Economic Development
Vision for Economic Development
2014 Industry Outlook
Now recognized as the bridge to our renewable energy future, clean-burning natural gas is consistently cited as a key reason for the recent drop in greenhouse gas emissions. Richter is noticing a rising number of fleet vehicles using natural gas and expects that to continue in 2014 and beyond.
Rothschild said improving transportation infrastructure – which includes addressing bottlenecks at the border and Interstate 19, freight and passenger rail, transit, bikeways and walkways – is important because it helps people get to work, adds to our quality of life and is a factor in economic development. Rothschild, who serves on the Regional Economic Development and Infrastructure committees, also sees growing technologies and startups as priorities for our region.
Serving on TREO’s Business Environment Committee allows Silvyn to take an active role in the region’s economic development, which includes portraying a business-friendly perception to the rest of the world. As a longtime proponent of Tucson, she’s able to learn from the past successes while continuing to see future opportunities. She said the backbone of success is a strong, vibrant and diverse business community that welcomes all types of jobs, from entrepreneurs to large corporations.
2014 Industry Outlook
2014 Industry Outlook
The outlook for Tucson is better than it’s been for some time, Rothschild said. Downtown is thriving again, there’s renewed energy and hope and the city is coming together more as a community around common goals. He reports that Tucson’s business incentives are having the intended results and sparking downtown development.
As a land-use specialist, Silvyn sees a positive outlook for the next two years due to the improving national economy and projected growth in Arizona. She predicted an increasing demand for expertise in this area and an ability to bring projects to successful completion.
Vision for Economic Development
The forecast for the state’s university system is good, according to Renzulli. Enrollments are increasing, student quality is improving and the research enterprise ranks among the best in the country. The two problems that continue to present a challenge are scarce resources and the need to strengthen the PreK-12 pipeline.
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Improving our region’s competitiveness is a goal for Southwest Gas and Richter, who contributes his time to TREO’s Business Environment Committee. Creating a business-friendly atmosphere in Southern Arizona is essential, Richter said, for existing businesses to thrive and expand while new companies are attracted to the area. 2014 Industry Outlook
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David Smallhouse Managing Director Miramar Ventures Vision for Economic Development
Innovation is at the core of creating a vibrant economy in Southern Arizona and it’s the engine that keeps an economy competitive for all business ventures, according to Smallhouse, who serves as an Innovation liaison. He said all sectors must constantly strive to improve if they are to prosper, and complacency is the enemy of prosperity, as competition will sooner or later drive margins down. A culture of innovation must be a priority if we are to grow our economy. 2014 Industry Outlook
Smallhouse sees the slow growth of the Gross Domestic Product contributing to the current trend of decreased risk taking by financial institutions, businesses and investors. Recent IPO activity in select technology sectors, however, may be the beginning of a new era of liquidity.
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Teri Lucie Thompson Senior VP for University Relations & Chief Marketing Officer The University of Arizona
Matthew Wandoloski VP, Corporate Strategy and Analytics Blue Cross Blue Shield of Arizona
2014 Industry Outlook
Vision for Economic Development
From a university viewpoint, Thompson continues to witness higher earnings and lower unemployment rates among college graduates, making higher education a valuable long-term investment. Unfortunately, lower federal research funding, a slowdown in household income and more student debt are affecting opportunities in higher learning. On the positive side, The University of Arizona is positioned to capitalize on its research strengths, attract well-qualified students, deliver on its land grant mission and partner with its sister institutions, businesses and government.
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Development and growth of Tucson and the Sun Corridor are Wandoloski’s passions, offering future graduates from Arizona universities and colleges more opportunity to remain in the state. These goals complement his professional philosophy of improving the lives of residents both in Southern Arizona and around the state. Wandoloski serves on TREO’s Healthcare Committee. 2014 Industry Outlook
The longevity of Blue Cross Blue Shield of Arizona – in business since 1939 – demonstrates how health insurance in the state has kept pace with the growth of its population.
Raymond L. Woosley President AZCERT Vision for Economic Development
Serving on TREO’s Healthcare Committee is important to Woosley as it addresses how the community will be affected by current healthcare changes. His company has similar goals, as well. AZCERT focuses on safe medication use and is founded on the belief that personalized prevention of illness will be a cost-effective alternative to the nation’s current focus on illness care. 2014 Industry Outlook
Woosley’s forecast for healthcare is that its availability will likely increase, but the quality of care will depend on whether the community is prepared to deliver the most cost-effective and scientifically-based medicine. AZCERT is forming healthcare collaborations to define the path to optimal physical and economic health for the people of Southern Arizona.
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Bruce Wright Associate VP Tech Parks Arizona The University of Arizona Vision for Economic Development
The technology sector is leading the country out of the recession, but for Tucson to take part in this economic growth, we must aggressively promote development in key sectors, said Wright, who serves on TREO’s Infrastructure Committee. These include aerospace & defense, renewable energy, mining and the biosciences. 2014 Industry Outlook
Wright expects modest growth among the companies located at the UA Science and Technology Park. He said the region has a competitive advantage in attracting others – in part due to our location in the Sun Corridor and the proposed construction of Interstate 11. Also key to the region’s success is the development of a corridor connecting Raytheon Missile Systems and Tucson International Airport to UA Tech Park.
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Steven G. Zylstra President & CEO Arizona Technology Council 2014 Industry Outlook
In today’s environment, nothing is more critical to economic development success than having a qualified workforce to meet the challenges of the 21st century. Serving on the TREO Talent Committee gives Zylstra the opportunity to weigh in and represent the employer perspective on behalf of technology concerns. 2014 Industry Outlook
Zylstra believes the technology sector will continue its growth trajectory in 2014, and while certain subsectors may fluctuate, the industry will continue to gain steam throughout the year.
OF COUNSEL Lawrence M. Hecker Partner Hecker & Muehlebach Vision for Economic Development
An economy based on innovation and entrepreneurship is critical in the creation, attraction and retention of sustainable, well-paying jobs for all sectors of our community, Hecker said. The region is fortunate to have The University of Arizona generating technologies that have tremendous commercial potential and growing industry segments that can take these technologies to market. This includes UA’s Tech Launch Arizona, which is hard at work identifying and supporting the commercialization process.
TREO offers a comprehensive approach of programs and services to facilitate the creation of high-wage jobs, through the attraction of new primary companies, the retention/ expansion of existing primary companies and increased business creation/entrepreneurship strength within the region. For more information, visit www.treoaz.org.
2014 Industry Outlook
With an increased level of business startups and growth in industries built on innovation and technology, Hecker sees no reason why this improvement shouldn’t continue – and possibly accelerate – into 2014.
BizTucson Magazine is published quarterly by Rosenberg Media, LLC.,Tucson, AZ © 2014 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. For information regarding advertising or subscriptions, please contact Steve Rosenberg at 520-907-1012 or, steve@BizTucson.com
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By Mary Minor Davis Creating an international trade corridor in Southern Arizona would bring economic prosperity and relevancy to the region. At the heart of that corridor is the proposed Interstate 11. The feasibility of I-11 – or the Intermountain West Corridor – is being studied by transportation departments in Arizona and Nevada. The vision for this interstate connector began in the 1990s, but has taken on more urgent prominence as the study for the alignment gets underway and business leaders call for increased focus on infrastructure to accelerate the economic recovery. The proposal, which links Phoenix and Las Vegas, currently does not include Southern Arizona. The business community – led by TREO, with involvement by the Southern Arizona Leadership Council, Tucson Metro Chamber and others – made a strong business case to the state Transportation Board to connect the I-11 not just between Phoenix and Las Vegas, but to extend it to Mexico and Canada, passing through the Tucson region. The issue is a critical component in TREO’s Blueprint Update. “Infrastructure is fundamental to future planning,” said Dennis Minano, a TREO board member who chairs the Infrastructure Committee for the Blue114 BizTucson
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print Update. “It’s the hard wiring that a community needs to be successful,” said Minano, who is vice chair at the Sonoran Institute. While the Sun Corridor represents an aggregate of population and business activity that could establish itself as an economic juggernaut in future years, infrastructure demands are at the center of Southern Arizona’s opportunities to provide the underlying support for economic development.
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People don’t make the connection between infrastructure and economic growth.
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– Chuck Huckelberry Pima County Administrator
“If we get bypassed by I-11, we’re done,” said Joe Snell, president and CEO of TREO, who was recently named to
the board of directors of the Interstate 11 Coalition. “We’re right on the fringe with limited highway infrastructure,” in terms of competing effectively. Pima County Administrator Chuck Huckelberry agreed. “We have an infrastructure deficit to meet the population and economic demand that we are anticipating. Historically, people don’t make the connection between infrastructure and economic growth.” Huckelberry – who sits on the TREO Infrastructure Committee – says it will be necessary to emphasize I-11 as a trade corridor vital to tying in our other assets. “We need to convince people that it is truly a trade route, not a commuter route,” he explained. “This is not going to be a route that brings local buyers to businesses next to the interstate. It’s designed to bring about competitive trade advantage in the national distribution of goods and products.” Huckelberry said those assets include two major highways, rail to Mexico, the Port of Tucson, the Tucson International Airport and surface transportation. “When you put these together, you start to see that we can become a real logistics center for the western region,” he said.
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To learn more, go to i11study.com www.BizTucson.com
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BizPROGRESS TREO Projects Since March 2013 Hanergy Holding Group Sector: Alternative Energy www.hanergy.com/en/
Reginald Bennett International Industry Sector: Aerospace & Defense www.rbi-inc.com
Beijing-based Hanergy Holding Group – said to be the world’s largest thin-film photovoltaic company – has completed the equity acquisition of Global Solar Energy. Hanergy will resume Global Solar’s operations in Tucson. The company plans to hire 183 employees and invest $4.9 million, with a total economic impact of $260 million.
RBI is a certified manufacturer of retro-reflective runway, taxiway and heliport lighting. This environmentally friendly technology is used by military, government, civil and commercial operators worldwide. RBI, which currently employs seven people, is relocating operations from Ontario, Canada.
Ascent Aviation Sector: Aerospace & Defense www.ascentmro.com Ascent Aviation is a premiere narrow body aviation maintenance and storage center located at the Tucson International Airport. The company is expected to hire an additional 100 employees and the capital investment is estimated at $4 million. Total economic impact is estimated at $96 million. Universal Bio Mining Sector: Bioscience www.universalbiomining.com Universal Bio Mining is applying synthetic biology to the mining industry, improving mineral extraction processes and remediation processes. The company relocated from California and is partnering with the Arizona Center for Innovation at The University of Arizona Science and Technology Park. The company plans to hire 40 employees with a capital investment of $500,000. The total economic impact is estimated at $39 million.
Mister Car Wash Industry: Other www.mistercarwash.com Mister Car Wash is the largest full-service car wash and lube chain in the United States. The company is headquartered in Tucson and has nearly 4,000 employees. It plans to add 50 employees to the HQ operations. New York Life Insurance Company Industry: Insurance www.newyorklife.com New York Life Insurance Company is the largest mutual life insurance company in the United States, and one of the largest life insurers in the world. The company announced plans in May 2013 to hire 60 new employees in the region. CaptionCall, a Sorenson Company Industry: Call Center www.captioncall.com CaptionCall offers telephone service for customers with hearing loss. In March 2013, the company announced plans to hire 270 employees in Tucson within the first year.
TREO PERFORMANCE Since Inception 2005 to 2013 Total New Jobs Supported* Capital Investment Total Economic Impact Successful Projects *Direct and Indirect
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Recent Fiscal Year FY 2012 – 13 19,916 $799 million $3.9 billion 69 companies
Total New Jobs Supported* Capital Investment Total Economic Impact Successful Projects
2,791 $44.4 million $1.58 billion 8 companies
*Direct and Indirect Source: TREO Winter 2014
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TREO INVESTORS* El Rio Community Health Center Freeport-McMoRan Copper & Gold GEICO HDR Hecker & Muehlebach Hilton Tucson El Conquistador Golf & Tennis Resort HSL Properties Jim Click Automotive Team Lazarus, Silvyn & Bangs Miramar Ventures Nova Home Loans Peto & Company CPAs Pima Association of Governments/ Regional Transportation Authority Pima Community College Pima County Randstad Staffing and Recruiting Raytheon Missile Systems Science Foundation Arizona SOLON Corporation Sonoran Institute Southwest Gas Corporation
Suddath Relocation Systems Sundt Companies The Northern Trust Company The Temp Connection Tucson Association of Realtors TMC Healthcare Tucson New Car Dealers Association Tech Parks Arizona United Way of Tucson and Southern Arizona The University of Arizona The University of Arizona Health Network University of Phoenix UNS Energy, Tucson Electric Power & UniSource Energy Services Vantage West Credit Union Ventana Medical Systems, a member of the Roche Group Walton International Group (USA) Wells Fargo Bank Wist Office Products *As of December 2013
TREO staff from left â&#x20AC;&#x201C; Laura Shaw, senior VP, marketing and communications; David Welsh, executive VP; Cathy Casper, senior VP, administrative services; Michael Guymon, VP, regional development; Jerah Yassine, office manager; Daniela Gallagher, economic development director and Joe Snell, TREO president & CEO 120 BizTucson
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Photo: BalfourWalker.com
Accelerate Diagnostics Alliance Bank of Arizona Arizona Commerce Authority Arizona State University Bank of America BBVA Compass Bank BeachFleischman BizTucson Blue Cross Blue Shield of Arizona Bluespan Networks Bourn Partners Carondelet Health Network CBRE CenturyLink Chase CopperPoint Mutual Insurance Company COX Communications Cushman & Wakefield | PICOR Commercial Real Estate Services D.L. Withers Construction Diamond Ventures DPR Construction
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PHOTOS: J. MARTIN HARRIS PHOTOGRAPHY
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BizTOURISM
$35 Million Makeover Westin La Paloma Restores Splendor to Iconic Resort Mary Minor Davis When Southwest Value Partners announced plans to renovate The Westin La Paloma Resort & Spa in January 2012, the community sighed with relief. After the property had gone into Chapter 11 bankruptcy in 2010, there was anxiety about what might happen to the popular, iconic destination. That anxiety was replaced by anticipation as work crews took over the resort. In August, the $35 million makeover of The Westin La Paloma was revealed, along with a new GM, Glenn Sampert. Guests are now enjoying the refurbished amenities at this dove of the desert. When La Paloma, which opened in 1986, was conceived by brothers George and David Mehl of Cottonwood Properties, it was expected to be the showpiece of the foothills. It featured a Jack Nicklaus-designed golf course, a clubhouse and the resort. The course was the first user of effluent water for golf courses in Southern Arizona and set the standard for desert preservation, according to Westin. A high-end residential community and an office complex completed the package. The development was touted as Tucson’s premier country club community and was the first of its kind in Tucson, with panoramic city and mountain views coupled with supreme recreational and social facilities. The resort attracted visitors worldwide. www.BizTucson.com
In 1988, the resort and country club were purchased by Aoki Corporation of Japan. Ten years later, a merger shifted ownership to Goldman Sachs, preceding a sale in 2007 to NCH-Transwest, a local property investment firm. Under the burden of the recession, Transwest suffered financial difficulties in 2010. Southwest Value Partners, a SanDiego-based real estate company cofounded by Phoenix Suns owner and Tucson native Robert Sarver, bought the property in 2012 and announced the multimillion-dollar makeover. Sarver, a University of Arizona graduate and chairman and CEO of Western Alliance Bancorporation, sees the potential of the Westin as the economy recovers and new marketing strategies are implemented. “There was a lot of neglect,” he said, noting the property had never been renovated. “It just needed a little TLC.” Sampert experienced the Westin as a guest when he and his wife vacationed in Tucson. “I don’t think I’ve ever seen such an extensive renovation of a property,” he said. “You could tell that a lot of work was needed.” Sampert sees a great deal of potential for business development, beginning with the local community’s support and commitment for the property’s success. “There is so much local pride in the resort of La Paloma,” he said. continued on page 128 >>> Winter 2014 > > > BizTucson 127
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– Glenn Sampert, GM The Westin La Paloma Resort & Spa
“Our ultimate goal is to sell the destination, and we need to work together to do that. I really love the new (Visit Tucson) brand,” he said. “The message
of authenticity and ‘Free Yourself ’ is something that’s very closely aligned with Westin.” Armed with a new marketing team, Sampert is implementing online and social media tactics to better connect with customers and potential guests. Regular Facebook postings are aimed at luring visitors to the luxurious guest rooms, sumptuous dining, sparkling pool, pristine golf course, Elizabeth Arden Red Door Spa and other amenities. “The Westin La Paloma is really committed to getting personal with customers,” Sampert said. “Our goal is to make the experience of staying in our properties a very individual, healthy experience.” Sampert said the marketing team has a “vanity” website in the works, which is a complement to the corporate site with more focus on the resort and surrounding area. He said an online and social presence is important to reach the majority of guests who use online tools when in the “dream stage” of planning their next travel experience.
PHOTO: CHRIS MOONEY
“We recognize what we represent to the local community, and our history is something to be proud of and to cherish.” Now the challenge is to bring back business that was lost during the bankruptcy and renovation process. Sampert said the aggressive construction schedule forced the closure of rooms and resulted in the loss of corporate events and group sales. Sampert is a 16-year veteran with Starwood properties, having also worked in Maui, the Bahamas and Los Angeles. He believes the skills he learned at each of those destinations and his international experience are strengths he brings in developing new markets. He has hit the ground running in Tucson, teaming up with Visit Tucson and other resort partners to promote tourism and La Paloma. He’s making connections and getting involved in local business groups and associations.
The Westin La Paloma is really committed to getting personal with customers. Our goal is to make the experience of staying in our properties a very individual, healthy experience.
Robert Sarver
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Diversifying target markets is also an important strategy. Sampert said La Paloma will look at different geographies and businesses that have previously been “untapped, or haven’t been targeted for a while.” For example, he sees targeting the international leisure traveler, conventions and groups, and industries that include major pharmaceutical companies that are reinstating corporate conferences. “Convention and group business now makes up a little more than 50 percent of the travel market nationally, where once it was 70 percent,” Sampert said. “While we have challenges in Tucson – the lack of a convention center and air service, for example – we do see other opportunities.” Sampert believes the resort will see double-digit increases in the next year. The most important message he wants to convey to guests is one of warmth and hospitality. “We are not ‘like new.’ This is not a renovation – this is a new place with quality amenities and a commitment to service in a terrific destination.”
What Was Done Lobby, Rooms, Conference Facilities
Grand lobby renovation, with a guest reception area New carpeting and furniture in lobby and bar All 487 guest rooms – including 25 suites – were renovated and redecorated – New HD-TVs, upgraded Wi-Fi and device charging stations – Heavenly Beds, a Westin staple, remain with higher-quality bedding – Expanded walk-in showers Renovation of 60,000 square feet of conference space with new carpeting, furnishings and audio-visual equipment
Recreational Amenities
Rehabilitation of the golf course greens and bunkers at the 27 holes New fitness center Resurfaced tennis courts Upgraded pools and water slide New cabanas, travertine stonework and patio features including negative edge reflecting pools with fountains and gas fire pits
Behind the Scenes
New heating and cooling systems New laundry facilities New computer systems
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Glenn Sampert
GM, The Westin La Paloma Resort & Spa www.BizTucson.com
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BizDEFENSE
Tucson 7th
in Nation for U.S. Defense Dollars Col. Kevin Blanchard
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PHOTO:CHRIS MOONEY
By David B. Pittman
The U.S. military and the defense contracting industry fly high in Tucson and Southern Arizona as an economic driver like no other. Nearly $5 billion in federal defense dollars flows into Tucson annually, according to a comprehensive Bloomberg Government Study released in 2011. That national analysis shows the Old Pueblo is the seventh top recipient of defense dollars among all U.S. cities – and number one in Arizona. Arizona receives about $15.3 billion in federal defense dollars annually, ranking it eighth among the 50 states. That’s 2.9 percent of total U.S. defense spending, which works out to $2,321 per Arizona resident. “It’s clear to me that the Department of Defense is the state’s largest and most important employer,” said Den-
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the United States. In fact, I think it is fair to say that it is unmatched anywhere in the world,” said Brig. Gen. Ted Maxwell, commander of the Arizona Air National Guard. The Barry M. Goldwater Range is a national treasure to the military that stretches essentially from Kitt Peak to the California border, from the Mexican border all the way to Interstate 8, with service to 50,000 feet. “The big kicker is the weather,” he said. “We plan for about five non-flying days a year. You can’t do that anywhere else.” Despite abundant air space, a nearperfect climate and the currently robust condition of aerospace and defense in Arizona, political and budgetary clouds are gathering that could threaten key military assets – particularly Tucson’s
meet sequestration budget reductions, Congress will authorize a Base Realignment and Closure process. “There is a danger in a BRAC,” said retired Air Force Maj. Gen. Donald Shepperd, who makes his home in Tucson. “I do not think a BRAC will come before 2017 – but you will start hearing about it being set up because the nation has 30 percent too many bases, according to the Department of Defense.” Shepperd, who formerly served as a military analyst for CNN, said the coming BRAC “means Davis-Monthan is now in competition with every other base in America.” An upcoming threat to the Air National Guard at TIA is the introduction of the F-35, a fifth-generation stealth fighter jet that is the aircraft of the future for the U.S. Air Force. The F-35,
It’s clear to me that the Department of Defense is the state’s largest and most important employer.
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Dennis L. Hoffman, Professor of Economics, W.P. Carey School of Business, Arizona State University
nis L. Hoffman, professor of economics at the W.P. Carey School of Business at Arizona State University. “I don’t want to think about what Tucson would look like without defense spending.” According to company officials, Raytheon Missile Systems – with 13,500 workers as of 2014 – is the Tucson region’s largest employer, followed by The University of Arizona, with 10,846, according to Arizona Daily Star’s Star 200. The third and 11th largest employers in the area are Davis-Monthan Air Force Base and Fort Huachuca in Sierra Vista, which employ 9,100 and 5,096, respectively. In fact, if you put D-M, Fort Huachuca and the 162nd Fighter Wing of the Air National Guard at Tucson International Airport (which has 1,039 employees) into a single category of U.S. military installations, it would be our region’s largest employer with 15,235 employees. There are nine major military installations in Arizona, and eight of them, including installations operated by the Marines and the Army, have flying operations. What puts the air in Arizona? Two things: Vast air space and warm, sunny weather. “There is air space over land in Arizona that is not matched anywhere in www.BizTucson.com
Davis-Monthan Air Force Base and the 162nd Fighter Wing at TIA. Business and community leaders have banded together to defend the defense assets in Southern Arizona. Leading the charge on the business side is Tucson Metro Chamber, Southern Arizona Leadership Council, Tucson Regional Economic Opportunities, Tucson Association of Realtors, Southern Arizona Home Builders Association, Visit Tucson and Metropolitan Pima Alliance. These business groups have joined with Southern Arizona military support groups, including DM50, the Air Guardians and the Fort Huachuca 50, to form the Southern Arizona Defense Alliance, with the goal of preserving military assets in the region. TREO and SADA have also taken business leaders on recent missions to the nation’s capital to learn more about the mood in Congress and at the Pentagon. A growing problem for the Department of Defense is federal budget cuts mandated by sequestration, which requires $1.2 trillion in automatic spending reductions to be split equally between defense and various domestic spending programs over the next decade. The reductions began kicking in this year. There is widespread belief among military officials that in order to
the most heavily software-driven aircraft in history, will replace the F-16. The 162nd Fighter Wing is the International F-16 Training Center for the U.S. Air Force. Members of SADA say it would be disastrous if F-35 training is not undertaken in Tucson. “Among a list of priorities is convincing the U.S. Air Force that the people of Tucson fully support the 162nd Fighter Wing and Davis-Monthan Air Force Base to include the assignment of the F-35,” said Ron Shoopman, president of SALC and retired brigadier general. He went on to say that “both the 162nd Fighter Wing and Davis-Monthan could be in jeopardy without the full support of the community.” The economic impact of the 162nd Fighter Wing is estimated between $280 million and $325 million annually. “We are trying to grow the aerospace and defense industry in Southern Arizona,” said Michael Varney, chamber president and CEO as well as chair of SADA. “Having the F-35 here is a critical component of the future of that industry.” There has also been discussion among Air Force brass about parking the A-10, the main aircraft stationed at D-M, and replacing it with the F-35. continued on page 132 >>> Winter 2014
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Both the 162nd Fighter Wing and Davis-Monthan Air Force Base could be in jeopardy without the full support of the community. – Ron Shoopman, President Southern Arizona Leadership Council
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U.S. Air Force A-10 Thunderbolt II aircraft sit beneath sunshades on the flightline before takeoff at Davis-Monthan Air Force Base, Sept. 26, 2012. More than 20 aircraft and 400 personnel were deployed to Bagram Airfield, Afghanistan. (U.S. Air Force photo by Airman 1st Class Saphfire Cook)
An A-10 prepares to land on the flightline after completing its mission at Davis-Monthan Air Force Base, Feb. 14. (U.S. Air Force photo by Airman 1st Class Michael Washburn)
Three A-10C Thunderbolt IIs fly in formation beside a KC135 during an aerial refueling mission in the Tombstone Military Operating Area in Southern Arizona, April 27. (U.S. Air Force photo by Airman Jerilyn Quintanilla)
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That prompted U.S. Rep. Ron Barber, a Tucson Democrat, and U.S. Sen. Kelly Ayotte, a New Hampshire Republican, to fire off a strongly worded letter on Nov. 13 about the importance of keeping the A-10 active to Defense Secretary Chuck Hagel and Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff. The letter was also signed by 31 other members of Congress. “The A-10 plays an essential role in helping our ground forces and special operators accomplish their missions and return home safely,” Barber and Ayotte wrote. “We oppose any effort that would divest the A-10, creating a CAS (close air support) capability gap that would reduce Air Force combat power and unnecessarily endanger our service members.” Shepperd said the A-10, nicknamed the Warthog, is the best jet for providing low-flying support to ground forces. However, he said economics favor the F-35. “The A-10 is a single-mission aircraft. But it is the single best closeair support aircraft anywhere in the world. The problem is with budgets looking like they do for the future, we are not going to be able to afford single-mission aircraft. The F-35 is a multi-mission aircraft that can do the same mission as the A-10, but in a different way. It will do it from high altitude with smart weapons and sensors.” Many observers believe the A-10 will not be retired for another 15 years or more, in part because new wings and electronics have been installed on the aircraft to extend their lifespan. But Shoopman called the A-10’s future uncertain. “Air Force officials are not just hinting at these things. They said they are seriously looking at parking the A-10s,” he said. “The timetable is unknown. The assumption was they would be around until at least 2025 – but that is not necessarily guaranteed under the current situation.” Business leaders applaud Barber’s efforts in support of the A-10, yet refrain from giving national security or procurement advice to Congress or the military. They say Tucson needs to embrace whatever mission the U.S. government sends our way. “If the Air Force does decommission the entire A-10 fleet, we need the F-35 here to replace it,” Varney said. “Otherwise we leave a large hole in the entire mission of D-M, which would increase the base’s exposure to BRAC measures.” The F-35 has been endorsed for deployment at D-M and TIA by Barber and by Republican U.S. Senators John McCain and Jeff Flake. Marana, Oro Valley, Sahuarita and Pima County have endorsed the use of the F-35 in Tucson as well, leaving just one local government jurisdiction conspicuously absent from the list – Tucson itself. While the Tucson City Council has taken no position on deploying the aircraft, Mayor Jonathan Rothschild said he must hear the F-35 firsthand before he decides his position. Local opponents of the F-35 primarily complain that the aircraft is too loud. Proponents say it is only slightly louder than the F-16. “I have made it very clear that I am going to listen to the F-35. I’ve gone once to listen to the F-35 and they couldn’t get one in the air. That was at Lockheed Martin in Dallas,” Rothschild said. “I know from my own personal view, for my own conscience, I have to hear the plane.”
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$5 Billion in Local Defense Contracts By Romi Carrell Wittman
Every time you hear the low rumble of a military cargo plane in the sky above you or the rat-tat-tat of a hovering military helicopter, think about the millions of dollars that are pouring into Southern Arizona. It’s easy to see the economic benefit of being home to Davis-Monthan Air Force Base or Fort Huachuca. Each site employs thousands of military and civilian personnel – people who pump money into the economy just going about the daily business of life. But what’s not so easy to see – yet is just as critical to Southern Arizona’s economic viability – is the financial impact of defense and homeland security contractors like Raytheon Missile Systems, Bombardier, Honeywell Aerospace, Lockheed Martin, Sargeant Controls and scores of other local companies, plus Northrop Grumman in Sierra Vista. Combined these companies provide skilled high-wage jobs for tens of thousands of people. The Department of Defense alone employs nearly 40,000 people in Arizona – two-thirds of whom are civilian personnel. “Defense and homeland security is a big focus for Arizona. It’s a huge economic driver,” said Jeffrey Goldberg, dean of the University of Arizona College of Engineering. “It helps drive business development for the entire region.” The Arizona Commerce Authority reports that in fiscal year 2010, Arizona companies captured $10.8 billion in defense contracts – 50 percent of which went to companies in the Tucson area. Statewide the aerospace and defense inwww.BizTucson.com
dustry contributes some $300 million to state and local tax revenues. “The fortunes of these companies go up and down with their ability to get subcontracts from the defense department – and our ability to provide a solid workforce in engineering,” Goldberg said. “All of these depend on the link to the Department of Defense – and that starts with the military.” When you add in the indirect impacts of the defense industry – ancillary jobs
Southern Arizona Aerospace & Defense Contractors
Raytheon Missile Systems is the largest aerospace and defense employer in Arizona with 13,500 employees as of 2014. The Tucson facility, by far, employs the most workers of Raytheon’s three Arizona locations. Bombardier ranks second in Tucson with 1,100 employees. These other defense contractors employ from 200 to 1,000 employees at a single location: Tucson • Honeywell Aerospace – 700 • Tucson Airport Authority – 320 • B/E Aerospace – 700 • Evergreen Air Center – 275 • Universal Avionics Systems Corp. – 250 • National Optical Astronomy Observatory – 200 Sierra Vista • L–3 Command & Control Systems – 300 • General Dynamics Corporation – 250 • Northrop Grumman Aerospace – 220 Sources: Arizona Commerce Authority, Aerospace & Defense in Arizona – A Sector Profile, 2011, and company updates
such as doctors, car dealers, realtors, dry cleaners and grocers that are created in response to the wants and needs of the 40,000 aerospace and defense jobs – the total number of jobs created jumps to more than 90,000. On a 2010 contract basis, Arizona’s most significant defense-related product lines statewide were guided missiles, general healthcare services, basic research and development of missile and space systems, guided missile subsystems and rotary wing aircraft. With the wars in Iraq and Afghanistan coming to a close, defense spending is expected to be cut in some areas. However certain technologies – like unmanned air systems – are expected to expand. Arizona stands to benefit to the tune of more than $12 billion in contracts by 2015, according to the ACA. That represents an increase of $1 billion in federal defense contracts. Unmanned air systems are a natural fit for Arizona and, in particular, the Tucson area. “We have a lot of space, great weather and a great university system, including Embry-Riddle Aeronautical University (in Prescott), that can help move research and tech forward,” said Goldberg. UAS includes a multitude of technologies and systems – including semiconductor manufacturing; search, detection and navigation instruments manufacturing; aircraft manufacturing, and computer systems design services. Goldberg recently assisted the ACA in drafting its proposal to the Federal Aviation Administration to designate Arizona as an unmanned vehicle aircontinued on page 134 >>> Winter 2014
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Top Defense Contractors in Southern Arizona Tucson Regional Economic Opportunities has identified more than 60 top defense contractors in Southern Arizona – providing everything from circuit design, optical engineering, lighting technology and thermal control to manufacturing, maintenance and medical transport. Here is a sampling: Advanced Ceramics Manufacturing Manufactures ceramic components for military, aerospace and industrial applications AGM Container Controls Design and fabrication of products that control and monitor moisture, pressure and vacuum changes, and shock and vibration Applied Energetics Man-made lightning technology for military and security applications Cybernetic Research Laboratories Contract manufacturing Hextek Corp. Large lightweight glass substrates and mirrors for use in groundbased airborne and space-borne optical systems Infinite Space Systems Materials and processes for the design, manufacture and sale of specialized polymer resins and coatings, including specialized insulation formulations and structures for use in a myriad of consumer and earth/space-based research and defense applications Infrared Laboratories Design and build advanced cryostats and low-temperature bolometers R.E. Darling Company Development and production of precision molded rubber goods; hoses and related products that resist chemical warfare; hardware items for space, military and medical programs; fabrication of undersea products, and reinforced composite and ablative components Secureplane Technologies Supplier of video camera and security systems, radios and collisionavoidance systems for aircraft ground operations ZYGO Electro-Optics Group Manufacturing Center Manufactures high-performance, laser-based, non-contact electrooptical measuring instruments, systems and accessories Source: Tucson Regional Economic Opportunities
space. If Arizona wins the contract, it will be a huge financial boon to local defense contractors providing the ancillary services necessary to manufacture, fly and monitor unmanned aircraft. “One of the key factors is our relationship with Air Force and Army posts,” Goldberg said. Competition for the contract is fierce – 34 states submitted proposals. The ACA hopes to learn by the end of the year if Arizona made the short list. Several local businesses are deeply invested in the unmanned aircraft market. Chris Peterson is the director of inside sales at Sargent Aerospace & Defense – a global supplier of precision-engineered customized components, as well as flight-critical aftermarket aviation services. “As a defense contractor, Sargent has taken an active role in the development of unmanned air vehicles,” he said. Sargent worked on both the RQ-4 Global Hawk UAV and the X-47B UCAV developmental aircraft. The company is currently evaluating and pursuing opportunities in the U.S. Navy’s Unmanned Carrier-Launched Airborne Surveillance and Strike program. Arizona has many things going for it when it comes to securing future federal defense contracts. First, Arizona is home to several military installations and has a long history with the defense department. In addition, Arizona’s climate allows for year-round training, as well as equipment testing under harsh desert conditions. If current trends continue, according to the ACA report issued in 2011, Arizona is on track to create between 3,000 and 6,000 new jobs by 2015. And, if Arizona locks in the contract with the FAA for UAS testing, truly the sky is the limit for Arizona’s economic future.
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By the Numbers $10.8 billion – defense contracts to Arizona annually $5 billion – defense contracts to Tucson annually $300 million – state & local tax revenues from defense/aerospace industry 90,000 – number of military, civilian and ancillary jobs Source: Arizona Commerce Authority
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Key Military Missions at D-M By David B. Pittman
Davis-Monthan Air Force Base is home to six key military organizations: The 12th Air Force Headquarters, a ten-
ant at Davis-Monthan Air Force Base, is one of the most powerful military organizations in the world. The 12th Air Force is responsible for the combat readiness of 10 active-duty wings and three direct-reporting units in the western United States. The fighter and bomber wings the 12th Air Force oversees include 430 aircraft and more than 33,000 active-duty military and civilian personnel. It also oversees four Air Force Reserve wings and 13 Air National Guard wings, including an additional 18,800 people and more than 260 aircraft. The 12th Air Force also serves as the air component to U.S. Southern Command – the Unified Command responsible for Central America, South America and the Caribbean. In this role, 12th Air Force is referred to as U.S. Southern Command Air Forces. This responsibility includes staff oversight, coordination and supervision of Air Force assets engaged in counter-narcotics missions. Another responsibility is to maintain a worldwide deployable Air Operations Center, which provides Joint Forces air commanders the ability to design and execute an air campaign. Members of the AOC build and execute daily air-tasking orders and airspace control orders, coordinate all logistics and service support to deployed air forces, establish and maintain essential communications links with air forces, and provide continuous intelligence and threat assessment to commanders. Lt. Gen. Tod D. Wolters, a three-star general and the highest ranking officer at D-M, is commander of the 12th Air Force. One of the wings Walters oversees is the 355th Fighter Wing – which means he oversees Col. Kevin E. Blanchard, the installation commander of D-M and commander of the 355th Fighter Wing. The 355th Fighter Wing operates the A-10
Thunderbolt II, an aircraft that provides close air support to ground forces, air interdiction, forward air control, combat search, and ground-based tactical control and airbase operations. The 355th Fighter Wing, which is the host unit at D-M, is composed of four groups – the 355th Operations Group, the 355th Maintenance Group, the 355th Mission Support Group and the 355th Medical Group.
The 309th Aerospace Maintenance and Regeneration Group, also known
as “the boneyard,” is the nation’s sole aircraft boneyard for all excess military and government aircraft. It has grown to include more than 4,400 aircraft and 13 aerospace vehicles from the Air Force, Navy-Marine Corps, Army, Coast Guard and several federal agencies, including NASA. The 55th Electronic Combat Group
provides combat-ready EC-130H Compass Call aircraft, crews, maintenance and operational support to combatant commanders. The group also plans and executes information operations, including information warfare and electronic attack (jamming), in support of theater campaign plans. Members of the 55th ECG conduct EC-130H aircrew initial qualification and difference training for 20 aircrew specialties and support operational and force development testing and evaluation for new aircraft systems. The 612th Air Communications Squadron provides premier Air & Space
Operations Center weapon systems communications support and versatile deployable communications capability to the United States Southern Command. The 563rd Rescue Group directs flying operations for the U.S. Air Force’s only active-duty rescue wing dedicated to combat search and rescue. The group, which consists of 1,125 military and civilian personnel, is responsible for training, readiness and maintenance of one HC130 squadron and two HH-60 squadrons, two para-rescue squadrons, two maintenance squadrons and an operations support squadron operating from two geographically separated operating locations, one of which is at D-M.
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Clockwise from upper left – B-24 bomber; the 308th Bomb Group in China after training at D-M; Tucson and D-M in 1942. (Photos: Courtesy Davis-Monthan Air Force Base)
From Lindbergh to Age of Jets By David B. Pittman A few months after Charles Lindbergh’s historic flight across the Atlantic, the pioneering aviator flew into Tucson. It was Sept. 23, 1927 and Lindbergh came to the Old Pueblo to dedicate a new municipal airport at the site where Davis-Monthan Air Force Base is today. The airport replaced the city’s first – Tucson Municipal Flying Field – which was established in 1919 and located four miles south of the city on Nogales Highway, where the Tucson Rodeo Grounds are now. According to the Davis-Monthan Air Force history fact sheet, the new airport was called Davis-Monthan Field, named in honor of Lieutenants Samuel Davis and Oscar Monthan – a pair of Tucson aviators who died in separate airplane crashes after World War I. Following years of stalled negotiations between city officials and the U.S. War Department, the city council authorized the purchase of the 1,280-acre 136 BizTucson
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site and transferred airport operations there in hopes the military would reconsider and establish an aviation branch in Tucson. That didn’t happen for 13 years. As a result of expanding conflict in Europe, the War Department did take over the air field in September 1940. It opened an Army Air Base at the site on April 17, 1941 and the 1st Bombardment Wing Headquarters assumed command. The first base commander was Brig. Gen. Frank Lackland. The outbreak of World War II resulted in parts of the 1st Bombardment Wing and the 41st Bombardment Group departing for the Pacific. In February, the 39th Bombardment Group arrived at D-M and began training B-17 Fortress and B-24 Liberator units and crews for the war effort. Military aircraft filled the skies over Tucson until V-J Day (Victory over Japan) in August 1945. At the war’s end, constant airport
operations ceased and D-M’s mission transitioned from training airmen to separation – the bureaucratic process used to send soldiers home after their military service was complete. At this time Davis-Monthan also took on the responsibility of aircraft storage – because Tucson’s dry climate and alkali soil was ideal for aircraft preservation. It is a mission that continues at the base to this day. In March 1946, the newly activated Strategic Air Command took control of the base. In 1947, the Air Force became a separate branch of service and two bombardment groups at D-M achieved “Wing” status. On Jan. 13, 1948, DavisMonthan Field was officially re-designated Davis-Monthan Air Force Base. Adaptation and shifting missions have been a constant at D-M, as the base and its soldiers were required to meet continual military and security demands in an ever-changing world. Here are other highlights of D-M’s history: continued on page 138 >>> www.BizTucson.com
U.S. Air Force pilots from the 354th Fighter Squadron walk to their assigned A-10 Thunderbolt at Davis-Monthan Air Force Base, Nov. 8. (U.S. Air Force photo by Senior Airman Josh Slavin)
D-M Airmen Love Tucson By David B. Pittman The vast majority of men and women serving their country at Davis-Monthan Air Force Base feel extremely appreciated and very welcome among the residents of Tucson. That view was expressed by both Col. Kevin Blanchard, the installation commander of Davis-Monthan who also commands the 355th Fighter Wing, and Master Chief Sgt. Dawna Cnota, a member of Blanchard’s leadership team at the 355th. “I hear things all the time from our airman about how members of the community frequently thank them for their service to the nation,” Blanchard said. “In fact, several people have told me of occasions where they were in uniform at a restaurant for lunch and when they got up to pay their bill, they were told that some other customer had already picked up the tab.” Blanchard welcomes such acts of kindness from individuals and the support of such groups as DM50 and the Southern Arizona Defense Alliance. “Frankly, it makes it easier for me to lead my airmen because it shows them they live in a town where they see an obvious show of support for them and what they do for the country.” Cnota said the Tucson community has “never disappointed me in how they treat and respect my airmen. I hear stories about it and have been the recipient of it myself. It’s so humbling. I am gratewww.BizTucson.com
ful for the support.” Cnota said D-M airmen are worthy of the respect and appreciation they are receiving from Tucson residents. “My airmen never cease to amaze me at the things they know how to do and with their willingness to drive to mission accomplishment,” she said. “Our mission here is very important and the airmen know where they fit in, even if they aren’t the ones flying the A-10. Whether they’re medical airmen, civil engineer airmen, finance airmen, weather airmen or wrench-turning maintenance airmen, they all understand how critical it is for them to perform their mission in support of our three main fighter wing missions, and those tasks of our mission partners on the installation.” SADA and DM50 support bringing the F-35, which U.S. military leaders consider the fighter jet of the future, to Davis-Monthan. While Blanchard takes no public position on F-35 deployment in Tucson, he welcomes the efforts of SADA and DM50 to protect and defend DavisMonthan Air Force Base. “As far as what weapons systems come and go from D-M, those decisions are well above my pay grade. That’s up to senior leaders of the Air Force and Congress,” he said. “But I welcome the kind of message our business leaders are taking to Washington D.C. because it shows decision makers there that Tucson is friendly to the Air Force – which
could prove important when they start looking at where they are going to close military missions or add them.” Cnota said, “Many military locations don’t have the benefit of a city of a million people right outside the gate. One of our main talking points to new airmen is that no matter what you like to do – indoors or out – you will most likely find it here. Awesome food, historic Indian reservations and missions, casinos, beautiful resorts, hiking, biking, skiing – it’s all here or very close by. And Tucson is a college town and the chance to attend college sports games is awesome. Even my bass-fisherman husband likes it here. Who knew there was such great fishing in the desert?” Blanchard said, “Most of our folks live off base. Between our airmen, their families and our civilian workers, that’s more than 19,000 people. Only 2,500 people live on the base.” Many of D-M’s military personnel give back to the Tucson community through volunteer and charitable projects. “Because Tucson is such a diverse and large community, our people can pick and choose where they want to live and still be within 30 minutes of the base,” Blanchard said. “It gives them the opportunity to select the schools that fit their needs and those of their children. “And of course the airmen, like many other people who live here, love the warm, sunny weather.” Biz Winter 2014
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BizDEFENSE continued from page 136 • The “Jet Age” began at the base in February 1953 with the arrival of four Lockheed T-33 training jets. A month earlier D-M’s runway was widened and lengthened to make way for the first jet bomber – the B-47 Stratojet. • In 1960, missions that were absent from D-M since WWII returned to the base – Reconnaissance and Combat Crew Training. • That same year an Intercontinental Ballistic Missile wing was established at D-M. It was announced that 18 sites around Tucson had been selected for construction of Titan II missile silos. The Titan II Missile program was built and became fully functional on Nov. 30, 1963. • On Nov. 8, 1965, the 355th Tactical Fighter Wing was moved from McConnell Air Force Base in Kansas to Takhli Royal Thai Air Force Base in Thailand. Following its service during the Vietnam War, the wing moved from Thailand to its new home at Davis-Monthan on July 1, 1971. • The A-7 aircraft was the major focus of training at D-M in the years leading to the arrival of the A-10 Thunderbolt. As the A-10 systematically replaced the A-7, the wing was re-designated as the 355th Tactical Training Wing on Sept. 1, 1979. The wing’s mission rested solely on A-10 training from that point forward. • The A-10 saw combat for the first time during the Gulf War in 1991. The aircraft destroyed more than 1,000 Iraqi tanks, 2,000 military vehicles and 1,200 artillery pieces. Just seven A-10s were shot down during the war – far fewer than military planners expected. A-10s flew 8,100 sorties and launched 90 percent of the AGM-65 Maverick missiles fired in the conflict. While burning oil wells provided Iraqi tanks with cover from advanced electronics and highflying fighters such as the F-16, the smoke proved to be ineffective cover for the trained eye of A-10 attack pilots. A-10s from the 355th Wing were also used in subsequent military conflicts in Iraq and Afghanistan.
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PHOTO:CHRIS MOONEY
Gen. Robert Ashley
Commanding General United States Intelligence Center of Excellence and Fort Huachuca
U.S. Intelligence Stronghold By David B. Pittman Fort Huachuca is Arizona’s oldest military installation, dating back to the Indian Wars nearly 137 years ago. Today, more defense dollars flow into Fort Huachuca than any military operation in Arizona. The fort, located 15 miles north of the Mexican border in southeast Arizona, is home to the U.S. Army Intelligence Center and the 111th Military Intelligence Brigade, which conducts military intelligence training for the armed forces. “Fort Huachuca is an incredibly important asset in our national defense,” said Congressman Ron Barber, DTucson. “It is also the major economic driver for Cochise County.” It all started at the beginning of 1877, when Col. August V. Kautz, commander of the Army’s Department of Arizona, ordered that a camp be established in the Huachuca Mountains to offer protection to western settlers and block Apache escape routes through the San Pedro and Santa Cruz valleys to sanctuary in Mexico. 140 BizTucson
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A temporary camp was established at Fort Huachuca’s current location on March 3, 1887 by Capt. Samuel M. Whiteside with two companies of the 6th Cavalry. The site was chosen because it had abundant fresh running water, a large number of shade trees and was on high ground – providing protective security from Apache attacks. Fort Huachuca was later designated as the advance headquarters and forward supply base for the military campaign against Geronimo. After Geronimo’s surrender in August 1886, the U.S. Army closed more than 50 camps and forts in the Arizona territory. Fort Huachuca was retained because of continuing border skirmishes with renegade Indians, Mexican bandits and American outlaws. In 1913, the famed 10th Cavalry – also known as the Buffalo Soldiers, the Army’s elite Black cavalry corps – arrived at Fort Huachuca. The Buffalo soldiers were stationed at Fort Huachuca for nearly two decades. They joined Gen. John J. Pershing in the unsuccess-
ful 1916 expedition into Mexico to hunt down Pancho Villa. During World War I, the 10th Cavalry was assigned the mission of guarding the U.S.-Mexican border. During World War II, the 93rd Infantry Division was stationed at Fort Huachuca. When the 93rd was deployed to the Pacific in 1943, the 92nd Infantry Division arrived at the installation for training and subsequent assignment to the European Theater. During World War II, troop strength at the fort reached as many as 30,000 men. At the end of WW II, Fort Huachuca was declared surplus and transferred to the State of Arizona. It was reactivated during the Korean War by the Army Engineers. A new era began in 1954 when control of Fort Huachuca passed to the Army’s Chief Signal Officer, who found the area and climate superb for testing electronics and communications equipment. The fort’s importance to U.S. national defense increased from that moment on. continued on page 145 >>>
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PHOTO:CHRIS MOONEY
Lt. Col. Greg Bush
Garrison Commander Western Army National Guard Aviation Training Site
Elite Helicopter Pilot Training By Romi Carrell Wittman Elite pilot training isn’t something you would expect to find in Marana, with its cotton farms and old rural homesteads – but the location is actually ideal given the temperate year-round weather conditions. The U.S. Army National Guard Silverbell Army Heliport has provided premier attack and aero-scout training to thousands of pilots from all over the world. The site’s convenient location – just 30 miles northwest of downtown Tucson and about 90 miles south of Phoenix – also adds to its premier status. The heliport sits just to the north of Pinal Airpark, a county-owned publicuse facility. It is home to the Western Army National Guard Aviation Training Site, known as WAATS, as well as many other National Guard units. 142 BizTucson
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The WAATS mission is to improve the overall aviation readiness of active and reserve guardsmen, as well as pilots from several partner nations. The facility specializes in training pilots to fly Apache and Longbow Attack helicopters. The region’s warm weather and clear skies enable the facility to have, on average, 360 training days per year. The 3,600-square-mile site serves both active duty and National Guard pilots, providing a variety of flight simulator training modules as well as helicopter emergency procedure training. Twothirds of the space has been approved for tactical landing zones and the training area has eight commercial-instrumented airports. The region and its military ties go way back. Originally known as Marana
Army Air Field, Pinal Airpark opened in 1943 and was used as a pilot training base during World War II. After the war, the facility closed until 1948 when the U.S. government deeded control of the site to Pinal County, which in turn leased the property to Evergreen Maintenance Center – a commercial aircraft servicing and storage company now called Marana Aerospace Solutions. In 2011, Pinal County renegotiated its lease to achieve Federal Aviation Administration compliance and maximize the potential for federal funding, and began a series of facility improvements. The airpark is a central focus of Pinal County’s economic development activities.
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BizDEFENSE
The US Army’s Crusader Advanced Field Artillery System, a 155-mm self-propelled howitzer, test-firing at the Yuma Proving Ground. (Photo by US Army/Time & Life Pictures/Getty Images)
Assuring Weapons & Munitions
Do Not Fail By Romi Carrell Wittman
For most Tucsonans, Yuma is just a single hot stop on the long drive to the cool beaches of San Diego. But if you look past the miles of farmland, the gas stations and fast food restaurants that cling to the Interstate, you’ll find one of the largest military installations in the world. “There are five major military installations in Arizona,” said Charles C. Wullenjohn, public affairs officer for U.S. Army Yuma Proving Ground. “The least known is Yuma Proving Ground. We’re a half-hour drive outside of Yuma and most people don’t have a clear picture of what we do. But our job is very, very important.” The vast majority of military installations exist to train personnel and ready them for combat. This one has a different primary mission – to test munitions www.BizTucson.com
and other equipment to ensure they function properly in the field. Though no statistics exist, such testing prevents injuries and saves the lives of untold number of American servicemen and women. Larger than the state of Rhode Island, the proving ground conducts a multitude of military tests using virtually every defense system and technology available. Its remote location makes it ideal to test medium- and long-range artillery, aircraft armament and firecontrol systems, unmanned air vehicles and automotive equipment. “We test everything for ground combat – all Army cargo and parachute systems, unmanned aircraft and so on.” Wullenjohn said. “We have multiple sets of missions that we perform and all are focused on issuing troops reliable
equipment that will function anywhere in the world.” At 1,300 square miles, the sheer size of the installation is staggering. It also controls some 2,000 miles of restricted airspace as well as six airfields – making it an ideal location to test unmanned aircraft. Nearly 1,000 miles of fiber optic cable provide instantaneous test data feedback. Established in 1943, Yuma Proving Ground is home to several specialized tenants, including the Military Freefall School, the Special Operations Terminal Attack Controller Course and a high-altitude Aerostat helium balloon to monitor the radar fence along the southern U.S. border. The Military Freefall School, part of the U.S. Army John F. Kennedy Special continued on page 144 >>> Winter 2014
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BizDEFENSE continued from page 143 Warfare Center and School, teaches the art of specialized military freefall parachuting. The school serves all branches of the military and trains elite Army Special Forces, Rangers and Navy SEALS. Yuma has been a key location for the military for more than 150 years. In 1850, Fort Yuma was built to protect the Yuma Crossing, a crossing point on the Colorado River traversed by thousands of travelers every year. In 1865, the Yuma Quartermaster Depot was built to serve as a supply base for Army posts across the Southwest. In the 1890s, the Army ceased active operations in the Yuma area. The area was not reactivated until World War II, when the U.S. Army Corp of Engineers opened the Yuma Test Branch to test combat bridges on the Colorado River. Nearby Camp Laguna was built to train troops for mechanized battle. After the war, the facility was repurposed into a test site to determine the effects of desert heat on critical equipment. The site was renamed Yuma Proving Ground in 1963 and in 1971 received the designation as a Major Range and Test Facility Base. Today the site ensures that weapons systems and equipment function safely and as intended. “The reason we exist is to make sure weapons and munitions don’t fail,” Wullenjohn said.
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We have multiple sets of missions that we perform and all are focused on issuing troops reliable equipment that will function anywhere in the world. –
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Charles C. Wullenjohn, Public Affairs Officer U.S. Army Yuma Proving Ground
The mission continuously evolves and, with the wars in Iraq and Afghanistan winding down, the site is currently focused on the development of unmanned air vehicles. “We play a huge role in the unmanned aircraft world – it’s a growth area. We have 2,000 miles of restricted airspace that testers use to test multiple different types of aircraft. And with six airfields, we offer realistic, real-world scenarios.” With 90 to100 missions performed on any given day, the proving ground is constantly developing and improving advanced air and weapons technologies. Wullenjohn said this is a boon not only to the U.S. military, but its allies as well. “People come from all over the world to see what we do and test their own systems. They frequently participate in developing U.S. technology to purchase it for their own countries. It helps our military and friendly nations too.”
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continued from page 140 In 1967, Fort Huachuca became the headquarters of the U.S. Army Strategic Communications Command – now known as the U.S. Army Information Command. In 1971, the post became home to the U.S. Intelligence Center and School. Also in 1967 Sierra Vista, located south and east of the post, annexed Fort Huachuca. Libby Army Airfield, which shares a runway with Sierra Vista Municipal Airport, is located at Fort Huachuca. The Electronic Proving Ground, a forerunner in the research and development of defense technology, was conducted from the fort for several decades. Military operations conducted at Fort Huachuca currently include: • The 902nd Military Intelligence Group, which conducts full-spectrum counterintelligence operations to protect Army forces, information and technologies – by detecting, identifying, neutralizing and exploiting foreign intelligence services, international terrorist threats and insider threats. • The U.S. Army Network Enterprise Technology Command/9th Army Signal Command, whose mission is to plan, engineer, install, integrate, protect, defend and operate Army Cyberspace. • The 11th Signal Brigade, which has the mission of rapidly deploying worldwide to provide and protect Command Control Communications and computer support across the full range of military operations. • The Army Military Affiliate Radio System • The Joint Interoperability Test Command According to a Bloomberg Government Study entitled, “Impact of Defense Spending: A State-by-State Analysis” published in November of 2011, Fort Huachuca received $1.2 billion from the Defense Department in fiscal year 2009 – far more than any other Arizona military installation. In fact, according to the Bloomberg Study, the amount of Department of Defense dollars pouring into Fort Huachuca was more than that received by Davis-Monthan Air Force Base ($478.3 million), Luke Air Force Base ($371.6 million) and Yuma Proving Ground ($217.2) combined. “Fort Huachuca is a unique contributor to the economy of Southern Arizona,” said Lee McPheters, research professor of economics in W. P. Carey School of Business at Arizona State University. “There is a high-tech focus on electronics and intelligence, which creates upper-level jobs for both military and civilian workers. The direct spending impact of more than $1 billion a year is really significant to the whole region.” A Maguire Study utilizing 2005 data showed that Fort Huachuca had an economic impact on the Arizona economy of $2.38 billion and was responsible for creating 26,921 direct and indirect jobs, both of which were high marks among Arizona military installations. Fort Huachuca is Cochise County’s leading employer.
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BizDEFENSE
Col. Howard “Phil” Purcell Commander 162nd Fighter Wing
New Commander for 162nd Fighter Wing By David B. Pittman The largest Air National Guard fighter wing in the nation – the 162nd Fighter Wing at Tucson International Airport – has a new commander. He is Col. Howard “Phil” Purcell, a former vice wing commander from the 192nd Fighter Wing at Langley Air Force Base in Virginia. Brig. Gen. Edward Maxwell, commander of the Arizona Air National Guard, said Purcell was on track for prominent leadership roles in Virginia, but opted for the opportunity to take the top job at the nation’s premier pilot training facility for the F-16 fighter. “I asked him why he wanted this job and his answer was simple: ‘I want to serve in mission, with the airmen,’ ” Maxwell said at a Nov. 2 ceremony at TIA in which Purcell assumed command of the 162nd Fighter Wing. Purcell is the fighter wing’s 12th commanding officer since it was formed in 1956. He is a veteran of operations Desert Storm and Iraqi Freedom, with 26 years of service and more than 3,000 flying hours in the F-16 and F-22 Raptor. He replaces Brig. Gen. Michael 146 BizTucson
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“Mick” McGuire, who is now adjutant general for the Arizona National Guard. Purcell told BizTucson he loves Tucson and couldn’t be happier with his new assignment. “The airport facilities are outstanding and we have an excellent relationship with the Tucson Airport Authority,” he said. “Tucson is a great place to live and fly. A majority of our airmen grew up in Southern Arizona and have family in the local area. We are proud to be part of the community and greatly appreciate the support we receive from all of Tucson and the state of Arizona.” The 162nd Fighter Wing has more than 43 years of experience in fighter training and more than 23 years of experience in training military pilots from countries that are U.S. allies. The wing has graduated more than 7,000 fighter pilots since 1969. Purcell said the 162nd accomplishes a broad set of missions in support of both the state and federal governments. “We have the best F-16 training program in the world and are responsible
for building lasting relationships with our country’s partner nations,” he said. “We fly the MQ-1 Predator in support of contingency operations across the globe, we sit in 24/7 air sovereignty alert to protect the skies over the southwestern United States, and we train and equip the entire wing to be ready to respond wherever and whenever the country or state of Arizona requires. “The 162nd’s tradition of excellence is due to the incredible men and women who make up our wing,” he said. “They are a talented and professional group who are proud to serve the state and our nation.” Purcell praised Air Guardians, a Tucson support group of the 162nd Wing, and the local business community for all they do to assist the Air National Guard in Tucson. “The support of the Air Guardians and members of the Tucson business community has been instrumental in our daily mission success and our integration into the local community,” he said. “They are irreplaceable wingmen for our unit.” Biz www.BizTucson.com
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BizPHILANTHROPY Count Ferdinand von Galen
Photos: BalfourWalker.com
Chair, Board of Trustees Arizona Aerospace Foundation
Delight in Flight
Count Raises $12 Million for Aviation Museums By Monica Surfaro Spigelman The sky’s the limit when it comes to what Count Ferdinand von Galen will do for Pima Air & Space Museum, the Titan Missile Museum and, ultimately, Pima County. Count von Galen joined the board of trustees of the Arizona Aerospace Foundation in 1997 and passionately led the transformation of the museums it operates. The count has a storied heritage – including two ancestors beatified by the Roman Catholic Church and the 12th century heraldic coat of arms symbolic of a northern Germany noble family. He could easily have been anything he wanted. Yet aviation became the core of his zeal. As a child he was spellbound by the bombers flying across the sky in World War II. That enduring fascination led him to become an international banker, aviation adviser, avid collector of aircraft and now the champion of Arizona’s air museums. The count may not be a pilot, but his soul soars as he strides around the 80-acre air museum – which he helped 148 BizTucson
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make the third largest of its kind in the world, and one of a select few that operates in the black. “I have a lot of curiosity about history and the world around me,” Count von Galen said. “What we’re about at the museum is instilling that curiosity – as well as dreams of innovation and technology.” Inspiring future pilots, engaging supporters and educating the community – that’s the everyday commitment of Count von Galen. He’s a hands-on, engaged leader. He is legendary for his graceful ability to move from old-fashioned carousing with the veteran stick-and-rudder guys who are museum volunteers to negotiating the acquisition of rare aircraft from four-star generals or an Imperial War Museum. His efforts are increasing visitorship and that’s impacting the region’s tourism industry. “What we have is diversification – from rare war planes to unique commercial aircraft,” Count von Galen said.
When he joined the foundation’s Board of Trustees in 1997, both the Pima Air & Space Museum and the Titan Missile Museum were floundering. The National Museum of the U.S. Air Force, which has a say in where important aircraft are placed, had doubts about what Pima Air & Space could handle. The count’s first task was to tackle the Titan visitors’ center at the site housing the nation’s last remaining Titan intercontinental ballistic missile. Eighteen months into his leadership, he had pulled together resources and collaborators, and cut the ribbon for the new complex, putting the landmark into its rightful historic and futuristic Space Age context. Then, the count ignited the interest of global collectors and philanthropists, wooing them with humor and conviction, gaining large monetary gifts and priceless acquisitions for Pima Air & Space and Tucson. Under his watch, 78 rare aircraft were added to the collection. More than $12 million in funding was brought in by the count, with 60 www.BizTucson.com
Convair B-36J Peacemaker
percent coming from outside Arizona. At his side is his wife of 48 years, the Countess Anita von Galen. An elegant and talented businesswoman, she enhances the collaborative enterprise that benefits the aviation museums. When the Arizona Aerospace Foundation’s board of trustees voted unanimously to name Hangar 1 in the count’s honor, the countess hosted a memorable surprise party for the unveiling. Museum, government and business leaders attended the glamorous fête held in the museum’s Spirit of Freedom Hangar, emceed in part by their son, Ferdinand Otto von Galen. Aircraft Heaven
Like a country doctor making his rounds, the count strides around the caliche of the 80-acre museum at least twice a week – exclaiming over aircraft exhibits, laughing with volunteers. A mild commotion occurs in the hangars as he briskly passes through. It’s clear that this impeccable gentleman in crisp sports jacket and pocket handkerchief is a hands-on leader, always engaging others in conversations laced with specifics about pilot names and aircraft designations. Passing through the Spirit of Freedom hangar – built via a large gift from benefactor John Mars – the count draws visitors to the sleek needle-like wonder of the futuristic Lockheed 71-A Blackbird, the world’s fastest aircraft. His enthusiastic storytelling continues as he nears a Learjet Model 23 built in the mid 1960s. The count knew the pilot, Louise Timken, a famous civil air patrol pilot and huntress. He points out the animal-skin seat covers. When Timken was 80 she donated her aircraft to the museum. This jet will be a centerpiece in a new Women in Aviation www.BizTucson.com
MIL MI-24D HIND-D Soviet Helicopter
exhibit scheduled to open in 2014. Near the restoration hangar, newly complete with a wash pad and water treatment system, the count recalls the story about the Mil Mi-24D Hind-D Soviet helicopter acquisition. After meeting the director of the Imperial War Museum during one of his many travels on behalf of the museum, the two traded stories about military equipment. By the end of the visit the director and the count were connecting their museum curators to explore the transfer of the Hind to Tucson. “This is how it works,” he said. “There’s a secret to persuading great people to contribute to your ideas,” the count said about his ongoing philanthropy in Pima County. “Having a museum with distinguishing characteristics is key.” After studies in England earned him a degree in classical languages, the count was hired by a bank in Germany. Mergers with a series of family companies followed. When his German banking business teetered in the early 1980s, he had already laid the foundation to rebuild by looking west to North America. “I was early in creating an American network to build our German-based international investment business in the beginning of the 1960s. For some months, I departed Thursday afternoons from Frankfurt, flying to New York City, working nonstop. However I was back in Frankfurt on Monday morning.” Count von Galen discovered the Southwest when he visited a business associate’s ranch house in Nogales. By 1973, he had set down roots in Patagonia, purchasing the historic Rail X Ranch, a working ranch for Red Angus
Avro AEW.2 Shackleton
Brahman cattle, with a 1930s colonial Santa Fe residence that ultimately was restored by the countess. The count’s First Patagonia Capital Company, a private investment company, now is managed out of the ranch. Planning for Expansion
Pima County Administrator Chuck Huckelberry recognizes the Pima Air & Space Museum as one of the region’s unique attractions. Pima County had included an air museum project in the now-postponed bond election. The project would include a 120,000-squarefoot Cold War Hangar, envisioned to house some of the museum’s most rare aircraft, as well as a theater showcasing the University of Arizona space and technical programs. “We are on county land and our responsibility is to grow the county’s investment,” the count said. “There’s a double bottom line here – operating in the black – as well as building tourism and presenting a world-class aviation museum. We hope the county says ‘you’re managing our investment well, go ahead.’ ” Engaging youth in science and engineering is a key priority. Already opening its doors to 29,378 children, the museum is introducing the Great Paper Airplane Project. The 2014 fly-off on Feb. 8 is sponsored by Mars, Incorporated. “The new generation – they do not know the magic of all this and where it can lead to in the future,” the count said. In the end, it’s all about stimulating the mind and exciting the eye – while satisfying the bottom line. “It’s a tight ship with great love of what we do visible everywhere. It’s what I expect of myself and of everyone who works here.” Biz Winter 2014 > > > BizTucson 149
BizTOURISM
Sewailo Oasis
Open Play for
By David B. Pittman At a time when only a handful of golf courses are being built or opened in the United States, the new Sewailo Golf Club – an 18-hole golfing oasis – is now open for play at the Pascua Yaqui Nation’s Casino Del Sol Resort, Spa and Conference Center. The lush 18-hole course with outstanding mountain views opened for business Dec. 12, marking the realization of a long-time tribal vision of making Casino del Sol a first-class, full-service destination resort. “The tribal resorts that are most successful have a casino, a hotel, a convention center and a golf course,” said Tribal
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Chairman Peter Yucupicio. “The golf course adds to the economic diversification we have at Casino del Sol, which will not only benefit the Pascua Yaqui people economically, but all of Southern Arizona.” The new Sewailo Golf Club was designed by Notah Begay III – a Golf Channel commentator and the only full-blooded Native American to ever play on the PGA TOUR – and Ty Butler, a golf architect of more than 20 years who formerly worked with Robert Trent Jones, Jr. The course measures 7,400 yards from the championship tees and features five different tee boxes at each hole.
PHOTS: COURTESY CASINO DEL SOL RESORT
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The golf course will not only benefit the Pascua Yaqui people economically, but all of Southern Arizona. –
Peter Yucupicio, Chairman, Pascua Yaqui Tribe
Sewailo, pronounced “say-why-lo,” means flower world in the Yaqui language. It is a fitting name for the layout – which features 14 acres of lakes, a mile of creeks, a pair of waterfalls, and plush landscaping through usage of the tribe’s Central Arizona Project allotment. On 10 of the 18 holes golfers have water hazards to avoid. “Casino Del Sol Resort is an extraordinary destination on its own. With the addition of Sewailo Golf Club, we’ve introduced the perfect complement to our award-winning property,” said Jim Burns, CEO of Casino Del Sol Resort. “We’re proud to now offer guests and locals alike a round of world-
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”
class golf as part of their experience.” Begay said the course would be unique to Tucson and the Sonoran Desert because of its other-worldly look and feel. The Sewailo property – formerly dry and flat – has been transformed into a gently rolling terrain that includes 100 acres of grass plus 30,000 native flowers, shrubs, trees and native saguaro cacti that were salvaged and replanted. At the groundbreaking of the golf course on Feb. 16, 2012, Begay said the vision of an oasis in the desert is of traditional importance to the Pascua Yaqui Tribe and is symbolic of an continued on page 152 >>>
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BizTOURISM continued from page 151 abundant and fruitful life. Begay, a four-time PGA TOUR winner and a 1995 Stanford University graduate, founded his golf-course design business – NB3 Consulting – in 2002 for the expressed purpose of bringing world-class golf development to Native American communities. He has designed two other golf courses, in Kansas and North Carolina, for Indian tribes. “I feel strongly that these projects start from a cultural standpoint and that it’s important to listen to the tribe and let them guide us,” Begay said. “My grandmother always taught me that to be successful in the modern world you don’t have to abandon your traditions.” Chairman Yucupicio praised Begay for his sensitivity to the land and Pascua Yaqui traditions. “You have to walk the land, and talk to the land and the trees, and tell them what you want to do and ask their permission,” Yucupicio said. “I believe this young man (Begay) did that. “We didn’t abandon the respect we have for our land,” he continued. “The changes that are being made will have a positive affect for the tribe and the entire community.” Yucupicio said revenue produced from the tribe’s casino, hotel and conference center is what made building the golf course possible. He said profits from Casino del Sol operations “help the tribe to compensate for many needs – in areas such as education, healthcare and housing – that are not covered by federal government assistance.” Replicating the opening of its resort hotel, which occurred on 11/11/11, Tucson’s Pascua Yaqui Tribe completed course construction on 12/12/12, but delayed opening the course for play until 12/12/13 to ensure planting and grasses were sufficiently mature. “We didn’t want to open at 70 percent, we wanted to open at 100 percent,” said Dan LaRouere, GM of the Sewailo Golf Club. Troon Golf, a Scottsdale-based golf management company that is active at properties in 29 states and 26 countries, oversees Sewailo operations. Additional amenities at Sewailo Golf Club include a driving range, practice areas for chipping and putting, Callaway Golf equipment rentals and instructional programs. Pima County Supervisor Richard Elias, whose district includes the Pascua Yaqui’s Casino del Sol enterprises, called it “the greatest entertainment complex in all of Arizona” – and with the addition of the golf course “it is only going to get better.” Casino Del Sol Resort is Arizona’s only Forbes Four Star and AAA Four Diamond Casino Resort. The resort offers guests and players alike six restaurants and bars, a conference center with breakout rooms, Hiapsi Spa, Oasis pool and bar, two casinos, AVA Amphitheater and now – Sewailo Golf Club. This is the new home course of the University of Arizona Wildcats golf program.
Biz
The golf club is open to casino resort guests and the general public. Tee times can be scheduled by visiting www.sewailogolfclub.com or by calling (520) 838-6623.
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SPECIAL REPORT 2014
S E I Z I N G
THE REGION’S BUSINESS MAGAZINE
O P P O R T U N I T Y
BFL
C O N S T R U C T I O N D I V E R S I F I E S
C E L E B R A T I N G
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T H R I V E S
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Y E A R S
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BizMILESTONE
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BFL Construction
40
YEAR
Commitment to Excellence By Sheryl Kornman Garry Brav is a Tucson entrepreneur who built his business life here from the ground up – after deciding on a whim to enroll at the University of Arizona. He started with a bar he built on Fourth Avenue in the early ’70s, then moved into construction. His success over the past 40 years is tied to his ability to adapt and diversify to address fluctuations in the economy and the needs of the community. He’s expanded from BFL Construction into a wide-ranging “family of companies” today. His construction company has not only built homes, movie theaters and schools, but also the Emergency Department at St. Mary’s Hospital, the headquarwww.BizTucson.comters of bioscience technology
company Ventana Medical Systems in Oro Valley and hundreds of other commercial structures in Southern Arizona Along the way, Brav developed deep relationships with subcontractors, vendors, craftspeople, investors and others who share his view that integrity, dependability, communication, collaboration and a commitment to excellence are the building blocks of long-lasting success. His intellect, passion for business, tenacity and the patience to ride the economic waves over the years helped him move from bar owner to builder, developer, tech industry guru and philanthropist. And he sees no point in stopping now. “What would I do all day?” continued on page 163 > >>>> > BizTucson 161 Winter 2014
BizMILESTONE
His Father’s Legacy Garry Brav surrounds himself with inspiration – including vibrant art by his father, Milton Brav. He keeps a book in his office that contains some 300 images of his father’s artwork – abstract paintings in bright primary hues and geometric paper sculptures. The guiding hand on the wall is a plaster cast of his father’s hand. Garry started working in his father’s food manufacturing company at age 5. “I got to see every aspect of his business – but especially how to treat people with respect and how to negotiate.” His dad sold the business while Brav was in college and devoted his time to art. Brav then pursued his own business ventures in Tucson after graduating from the University of Arizona.
Garry Brav
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Founder, BFL Construction
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My relationships are based on performance. I can always look people in the eye and know I took care of them.
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– Garry Brav Founder, BFL Construction
Photos: BalfourWalker.com
continued from page 161 To Succeed – Diversify Today Brav is also a venture capitalist, investing in and building a luxury rental housing product that offers a quality home with granite countertops, 10-foot ceilings and private yards, along with safety and privacy within gated communities. “I try to surround myself with people who are smarter and more competent in their discipline than I am,” he said. He hires the smartest people he can find who will adhere to the highest industry standards. They are the keys to his success. Many of his managers have remained with him for more than 30 years and the collective employees have more than 240 years of experience at BFL. Working at BFL requires top employee performance and skill. Those who don’t adhere to Brav’s standard of excellence will find themselves moving on. “We want to be the most professional construction company in Arizona. That’s the level of performance that I require and I want to deliver. That’s why clients like us. We do what we say we are going to do. The success of the business depends on this. If you don’t perform – we don’t need you.” Brav moved from custom homes to tenant improvements in new and existing commercial structures (mostly continued on page 165 >>> www.BizTucson.com
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BizMILESTONE
BFL Construction Office
1997
2001
Hon Dah Resort Casino and Conference Center
Rancho Sahuarita Clubhouse and Water Park
Pinetop, AZ
Sahuarita, AZ
Square footage: 119,169
Square footage: 15,000
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2001
2004
2006
2007
Ventana Medical Systems
Integrated Biomolecule Corporation
Finisterra Luxury Apartment Homes
Ventana Medical Systems
Oro Valley, AZ
Oro Valley, AZ
Tucson, AZ
Oro Valley, AZ
Phase I Square footage: 182,400
Square footage: 21,120
Square footage: 327,050
Phase II Square footage: 142,000
40
continued from page 163 high rises), on to commercial, then into planned communities. Along the way he redesigned the construction contractor’s role. He likes to smooth the process and control costs by getting involved at the start of a project rather than getting called in when it’s time to break ground. His ability to collaborate across specialties has rewarded him with expanded business opportunities and a work force dedicated to getting it right the first time.
As a developer of single-family homes, he is working with second-generation homebuilder David Williamson, whose oilman father created Fairfield Homes. Williamson is a visionary, who is “good at lot design,” Brav said. “I recognize it when I see it. It doesn’t just come to me without working at it – but David just sees it.” Williamson looks at large parcels of land and has the ability to maximize the attractiveness of each lot as he lays out the home sites. Brav
and Williamson’s synergy is an important key to their business growth. Early On-the-Job Training Brav got his own start in business as a child in Chicago, when this son of Austrian immigrants accompanied his father to work during summers, starting when he was just 5 years old. “I followed Dad around all day and listened to how he handled conversacontinued on page 166 >>>
2007
2008
Sierra Vista Regional Health Center
Carondelet Neurological Institute and Women’s Care Tucson, AZ
704 parking spaces
Sierra Vista, AZ Square footage: 105,000
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Square footage: 166,916
2008
2009
2010
2013
Northwest Hospital Parking Structure
Pima Air and Space Museum
El Rio Community Health Center
Joint Technical Education District
Tucson, AZ
Square footage: 26, 574
Tucson, AZ Square footage: 28,000
Tucson, AZ
Tucson, AZ
Square footage: 7,400
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Photos: BalfourWalker.com
Front row from the left: Erin Stock, Carrie McClafferty, Julie Culver, Lourdes Sykes, Bernice Welch, Ashley Benjamin, JoAnne Klemmer, Leslie Schaefer, Elaine Rosen, Kim MacPhee, Danielle Seiwell – Middle row from the left: Phil Cohen, Tom Smallhouse, Max Mejia, Dan Levitt, Jr., Jennifer Mohs, Jimmy McIntyre, Luis Mendoza, Jeff Freeman, Bill Reynolds, Garry Brav – Back row from the left: Delbert Dittmer, Chris Flint, Steve Richardson, Wayne Anderson, David Williamson, Brad Pavelich, Ken Sand, Dave Winsor – Not pictured: Ken Brandstatt, Gene Parkinson, Ron Kuipers, Robert Dunlop
“
Photo: BalfourWalker.com
I developed my own business acumen listening to my dad. I got to see how he handled every aspect of his business.
”
– Garry Brav Founder, BFL Construction
Meet the BFL Team Delbert D. Dittmer, Owner & VP
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Raised in Iowa, Delbert D. Dittmer attended college for drafting, construction principles and estimating. He operated his own successful construction business for 13 years until the mid ’80s when an economic downturn compelled him to seek work outside the Midwest. He visited several Sun Belt states looking for a new start. He found that new start at BFL Construction in Tucson. That was 27 years ago. Through the years he moved from superintendent to project manager. Today he is a senior VP and owner. Dittmer assigns projects to the company’s project manager/estimators and takes part in the conceptual estimating of the cost of a project. Because BFL gets involved early in the process, often in the design stage, preliminary cost estimates can be made without a full set of plans. “We get in at the very beginning and stay to the end. We give pricing options and are part of the decision-making process with the client.” BFL produces feasibility studies for different types of construction and product – offering suggestions that will work with various design elements to build a long-lasting product. “We guarantee a maximum price,” Dittmer said. “The price does not change unless there is a change to the scope of the project. All projects are completed on time and on budget.” BFL is very selective in its choice of subcontractors. “Our prequalification process allows us to select the subcontractor that is best qualified for each type of product.” Dittmer said BFL, now marking 40 years in business, has the experience and leadership to provide a turnkey project. It also works with a client’s architects and engineers to put together a team to execute a project, while the business owner focuses on running his or her business. “We help in the decision-making process, but the decision is made by the team. They make the best decisions,” Dittmer said. “The BFL company slogan is ‘Expect Integrity.’ Maintaining honesty and integrity on every project is a key element to building future business relationships.”
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tions. I developed my own business acumen listening to my dad. I got to see how he handled every aspect of his business – but especially how to treat people with respect and how to negotiate.” Brav’s father started early too – working at age 12 in a Stop & Shop grocery for 25 cents an hour. When he served in the Navy during WWII, the store kept him on the payroll throughout his military service. After the war, he opened a Stop & Shop in Indianapolis. A couple of years later he decided to start his own business. In his 30s, the elder Brav began to experiment with the application of new packaging technology for food manufacturing. Brav said his father invented the frozen French fry and frozen individual appetizers – cheeses on a cracker or pastry bed – and began manufacturing cheese products with machinery he bought in Switzerland. It was novel then to buy a frozen food and heat it in the oven. The factory ran two shifts processing cheese, forming them into triangles wrapped with foil. Later he had a Styrofoam mold made to hold ceramic crocks of cheese, which became a big seller at Christmas time. Then Brav’s father began to manufacture private-label foods for Reese, Viking, S.S. Pierce, Richelieu Foods, Hickory Farms and others. It was a new concept at the time. “I worked in the factory,” Brav said, continued on page 168 >>>
BizMILESTONE Code of the West Garry Brav holds himself and others to the highest standards – and has for 40 years. He cultivates lasting relationships, pursues an unwavering commitment to excellence and explores new ventures with zeal. He frequently quotes these 10 guiding principles from The Code of the West: 1. Live each day with courage 2. Take pride in your work 3. Always finish what you start 4. Do what has to be done 5. Be tough, but fair 6. When you make a promise, keep it 7. Ride for the brand 8 Talk less and say more 9. Remember that some things aren’t for sale 10. Know where to draw the line
Mining Equipment Maintenance Facility
Photos: BalfourWalker.com
Source: “Cowboy Ethics: What Wall Street Can Learn from the Code of the West” by James P. Owen.
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continued from page 166
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“starting in the label room, straightening stacks and stacks of labels” that would be fed into automatic labeling machinery.
Meet the BFL Team Lourdes Sykes, Chief Information Officer Lourdes Sykes started at BFL Construction as an accountant. After two years, she moved to Seattle and trained in information technology. While in Seattle, she worked her way into an IT director position at a commercial real estate company. Five years later, Lourdes returned to Tucson as the IT manager for BFL. Recently she was promoted to chief information officer. Her work in systems analysis is complex and deadline driven – which is what she loves about the new position. As BFL President Garry Brav diversifies his business interests, the IT department is a key player in mastering the use and flow of information to execute new projects. When sister company Preferred Apartment Builders made plans to build the AVILLA brand – luxury rental homes in gated neighborhoods – Sykes got a new set of challenges. The design-implement phase required substantial testing to meet the precise requirements of the product. “It was a very different set up,” she said. “We had to analyze how to do it – and do it right the first time. We strive to constantly improve systems to create efficiency.” Sykes and her team study the information needs and business processes of a project, taking on a leadership role to develop better ways of integrating technology with business on that project. She’s enjoyed her move into management. “I love interacting with people and I have a passion for numbers. I interact with every person in the office. We are proactive in design and always look to see what’s next. I get out of my comfort zone – which I enjoy. These are the challenges I like. Technology and business practices will always be advancing and you have to keep up.” When there is an IT issue, Sykes and her team move quickly to help employees and subcontractors overcome obstacles. Systems are protected and security is the top priority. “We are proactive and put procedures in place to avoid problems.” The company cross-trains and has redundancies in place. “We have a Plan B,” she said. “Garry has a direction and vision for his company. He understands and supports new ideas,” Sykes said. “He is really into technology and efficiency. He sees the value of what I present to him.” While Brav embraces change and the use of technology, Sykes understands that his real focus is accurate up-to-date data – always.
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Quality Control from Start to Finish In the factory were giant kettles, up to 1,000 gallons each, which were used to prepare the different flavors of cheese – caraway, port, cheddar and Swiss and he learned quality control as he saw the equipment “perfectly cleaned overnight” by steam cleaning crews dressed in protective gear. It was very organized. “I saw levels of supervision (in place) to make sure everything was perfectly clean” for the next day’s production, Brav said. He also traveled to New York and New Jersey with his father to buy the specialized manufacturing equipment for the factory. “This was very complex and exacting equipment specifically designed for Dad. It enabled the processed cheese to be made in a variety of shapes, then move to packaging and labeling. It’s the kind of equipment you see in food factories of today and on ‘How It’s Made’ on the Science Channel.” Garry worked every aspect of the business, including operating forklifts and working the loading docks to get product into the distribution chain. The business grew and he fully expected to become part of the company. He was poised to take on the big companies like Kraft Foods after college. Then – just as he was nearing graduation – his dad sold the company to the Pet Milk Group. Off to Arizona Brav was educated at a private school: The Latin School of Chicago, but he chose not to attend an Ivy League college. That decision shaped his future. While working at Chicago’s Lincoln Park Zoo the summer after graduating from high school, he met a fellow zoo worker, a University of Arizona junior. “I was always into cowboys growing up,” Brav said. “Gene Autry, Roy Rogers, Gunsmoke. So just three days becontinued on page 170 >>> www.BizTucson.com
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continued from page 168
Meet the BFL Team Ken Sand, Project Manager & Estimator BFL Construction’s Ken Sand is proud that at BFL “we do it all – we estimate, design and build.” Sand, a project manager and estimator, has been with the company 23 years. Because the estimator is also the project manager at BFL, responsibility for each project doesn’t end until it is completed to a client’s satisfaction. “We work on estimating, value engineering and product selection,” Sand said. “When you’re involved in predesign and preconstruction as project manager and communicate often with site superintendents and subcontractors, you can make sure the client’s expectations are met.” Communication throughout the process is always polite and the project manager remains available to the client after completion to manage any warranty or other issues that may arise, he said. “It’s an added personal touch we offer our clients. Continuity is important – it enhances the experience.” “During conceptual estimating, BFL’s project estimators will include items that will be needed on the project whether or not they are on the drawings at that point,” he said. “We make sure it is included so the cost and scope of the project can be properly assessed.” Sand’s specialty is health and medical facilities. He managed BFL’s work on health clinics for El Rio Community Health Center. The six new facilities were built from the ground up. Two are LEED certified by the U.S. Green Building Council. He also managed BFL’s work on 12 COPE behavioral health facilities in Tucson and seven behavioral health facilities for SouthEastern Arizona Behavioral Health Services in Cochise, Santa Cruz, Graham and Greenlee Counties. He also supervised construction of Pantano Behavioral Health’s adolescent outpatient clinic, Cottonwood de Tucson’s administration building and Department of Economic Security offices, all in Tucson. He also guided BFL’s work on several remodels of surgical suites at the University of Arizona Medical Center. Sand began his career working with his father and uncle in the family construction business in Denver. He started as a young teen during the summers. His father brought him to job sites and he learned the business by listening, watching and doing. “When you grow up in the business, it’s a different type of apprenticeship,” Sand said. Today “technology has changed how we do business,” Sand said. Drawings are digitized and the scope of work – how much concrete you need, the quantity of materials, the cost of materials – is calculated with precision. “We do it on the computer now. We assign a cost based on our experience with that type of product.” It adds a standard “in how you approach the complexity of an estimate. It’s easier this way for a client to see what you are providing.”
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fore the start of fall semester 1964, he decided he wanted to attend the UA in Tucson. The headmaster at The Latin School made a call to the UA admissions director and Brav was on a plane to Arizona. His father agreed to pay for tuition and books and send him $170 a month, “which was a lot of money then.” When he stepped off the plane and saw blue sky, he fell in love with Arizona. There were no dorm rooms available by then, so he went to the Student Union to look for a roommate to get an apartment. That’s how he met developer Ron Janoff, who had built the Carousel Apartments where he rented and the two became lifelong friends. Brav was just 17. He joined a fraternity, Alpha Epsilon Pi, made friends easily and was its social chairman in his sophomore year. To help the boys get dates, Garry the entrepreneur started a college newspaper that published the pay phone numbers on each floor of the girls’ dorms. He and his friends regularly enjoyed a $2.95 steak at Pack-Em Inn Steakhouse, now closed. While he worked on a bachelor’s degree in business administration and thought about where to go from there, Brav took a lot of psychology classes. They helped him better understand himself, he said, and he earned extra money working part-time downtown at Myerson’s and at Franklin’s selling men’s clothes. In his senior year, he bought a 1955 Mercury for $45. He had saved $5,000 over four years, so after graduation in 1968, he bummed around the country in his Mercury visiting college friends. He then came back to Tucson and signed up as an extra in the cast of the now-classic “Catch-22,” shot in San Carlos, Sonora. He met director Mike Nichols and befriended actors Art Garfunkel, Bob Balaban, Alan Arkin, Paula Prentiss, Martin Sheen and Buck Henry, who wrote the screenplay. The back of his head is onscreen for a moment in the final cut, as the chauffer of Orson Welles’ character. That’s where he met Balfour Walker, a Tucson commercial photographer, and began a lifelong friendship with him continued on page 172 >>> www.BizTucson.com
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Meet the BFL Team JoAnne Klemmer, Controller JoAnne Klemmer, controller for BFL Construction, was business manager at a nonprofit osteopathic foundation before she came to Garry Brav’s company with a degree in accounting from California State University, Fullerton. Klemmer and her staff produce financial statements, depreciation schedules, audit preparation and many other reports for Brav and his more than 30 business entities. “It is not a boiler-plate type operation,” she said. As Brav takes on business partners for various endeavors, “we work with his partners and their desires and needs.” On Alta Vista Communities, one of the entities building the AVILLA luxury rental home brand, she prepared numerous financial reports before and after properties were built out, including those required as construction was completed. “The variety makes it more interesting. It’s enjoyable to put together the entire account from start to finish.” Klemmer said her work requires creativity and “that satisfies that part of me.” As Brav began to form new sister companies, Klemmer said she asked him to stop after the sixth. “Did he listen to me? No,” she said. Brav has been a “great mentor to me about the business world. He’s certainly sponsored a team effort” among the staff. Brav is known for his longstanding open-door policy. Anyone can talk with the boss. Logistically, when working with so many entities, it is important “to strive for as much perfection as we can get,” Klemmer said. That requires utilizing new systems and adapting others to BFL’s changing needs. Her staff must provide calculations across all entities – determining soft costs, for instance, to give more control over the execution of development of the various properties. Klemmer said Lourdes Skyes, the company’s chief information officer, has been “very clever in modifying the various tools that can accommodate any of the entities. We feel confident we can present our financials to any owner,” she said. “It goes to our credibility, in the end.” Accounting is the hub of the company, she said, providing data to contractors, estimators, production supervisors and the owners. She has enjoyed seeing the company grow over the 15 years she’s been with BFL. “It’s great to see all these buildings completed.”
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continued from page 170 and BMW motorcycles. Just a few years ago that they took their dirt bikes, BMW F 650 GSs, 2,300 miles down Baja and back. They also have BMW R 1200 GSs and continue to ride both bikes when they can. Fourth Avenue Beer & Burgers Back in Tucson and with a $5,000 loan from a college girlfriend’s father and a partner, he opened a bar-restaurant on Fourth Avenue in a small storefront and sold quality hamburgers and 10 kegs of beer a day, seven days a week, for 18 months. One of his selling points – the beer was a reliable 34 degrees. Today the site is the bar IBT. Brav found he was a good manager, but didn’t like the bar business. He sold it for $60,000. He bought the building for $50,000 after opening the bar – and sold it for $75,000. What next? “There weren’t too many choices in 1973 – Hughes Tools, the Post Office, the UA, Circle K or sell real estate,” Brav said. Rather than sell real estate, he decided to build it. He bought a lot on Wilshire Drive near Broadway and Craycroft for $7,000 and with a $35,000 loan from Southern Arizona Bank and a partner, built a house – then sat on it for a year when it didn’t sell. He got $47,000 for it when it did. From Homes to High Rises Brav built custom homes through the ’70s and - ahead of his time - introduced solar-powered homes to Tucson with solar power technology from Israel and Popular Mechanics magazine. People were curious to see the homes, he said, but he only sold four. Lesson learned? “Pioneering doesn’t always pay off.” He moved on to tenant improvements in high rises – the Home Federal Tower – after knocking on doors there for over a year looking for work. He knew he wanted longer lasting relationships with clients - built on performance. That would help him expand his portfolio. “We put in a door for $147. It was a two-day job. Then they hired us to continued on page 174 >>> www.BizTucson.com
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BizMILESTONE continued from page 172 do another job. Six months later they wanted me to open an office there. I was working on a desk made from a door laid on cinderblocks and a file cabinet in the corner of my bedroom.” The space he chose in the building was 6 feet by 7 and cost him $42 a month. “It was perfect,” he said. He bought a desk for $70 at Super City and moved in his adding machine and files. “I was really in business now.” He made tenant improvements to the Home Federal Building at 32 North Stone Ave. and to Arizona Bank Plaza at 33 North Stone. As it was just being finished he was introduced to a New Yorker whose company was going to get the contract for all of the tenant improvements from Cushman and Wakefield for the new building. “We hit it off. I took him to dinner at Palomino. We shook hands and formed a new company – BFL. The company went from $289,000 in revenue to $2.5 million in the first year. In 1984, Brav
bought out his partner. Building for Bioscience, Education & Healthcare Brav soon branched out into highly specialized areas – bioscience, education and healthcare. Ventana Medical Systems, which develops and produces human pathology diagnostic tools, chose BFL to build its world-class research facility in Oro Valley in 2000. Mara G. Aspinall, CEO and President of Ventana, said BFL also “successfully handled two strategic expansion projects to accommodate our global market growth.” She added, “Nestled close to the base of the magnificent Santa Catalinas, the campus provides an inspiring, welldesigned and constructed workplace for our 1,000-plus employees – and a treat for community members who visit for our cancer educational events or to enjoy the Ventana Art Gallery.” With BFL’s sister companies, Brav is growing again, anticipating the needs of investors and communities for differ-
ent types of construction. He is building high-end rental homes in Tucson and Phoenix with lavish interiors for an emerging class of renters, single-family homes near Vail, as well as affordable housing for veterans and people who are physically or developmentally challenged. That construction is subsidized by government funding. The residents will be supported by local social and behavioral health services. After 40 years Brav still enjoys watching a vision become reality and is eager to embrace the next opportunity. Over four decades his businesses grew to $60 million annually, shrank and bounced back to $60 million. “We’re set to come roaring back as the market changes, and go to the next level,” he said. What is most important to him is BFL’s good reputation. “It’s important to perform,” he said. “My relationships are based on performance. I can always look people in the eye and know I took care of them.”
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Looking back, the construction of the Ventana Medical Systems campus was a defining moment in the history of our company. Garry Brav, founder of BFL Construction, told BizTucson in the Fall 2012 edition
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1. El Rio-El Pueblo Clinic 2. Carondelet St. Mary’s Hospital 3. Surgical Suite at SVRHC 4. Sierra Vista Regional Health Center 5. Carondelet St. Joseph’s Neurological Institute and Women’s Pavilion
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TENANT IMPROVEMENTS Corporations ADP Advantage Health Network Benjamin Supply Brooks Fiber CARF Delta Airlines Estes Corporation GRE Sprint Hewlett Packard IBM Mountain Bell Telephone Osten Kimberly Quality Care Partners Health Care Paychex Plaza Club Research Corporation Rincon Research TWA Xerox
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1 Over the past 40 years BFL Construction has completed hundreds of major tenant improvement projects including those highlighted here.
Certified Public Accountants ABP Arthur Young Arthur Anderson Coopers Lybrand Peat Marwick & Mitchell Piper Jaffray Price Waterhouse Banking Institutions Arizona Bank Arizona Commerce Bank Banco International BVAA Compass Citibank Commerce Bank First Federal Savings Home Federal Savings Northern Trust
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Financial Services Abacus Coldwell Banker Carron & Black Colonial Mortgage Crown Life Davis Mortgage Directors Mortgage Dun and Bradstreet Equitrust Resources First Mortgage First Union Mortgage GMAC Corporation Guardian Financial Planning H.S. Pickrell John Hancock Insurance Midland Mutual Mutual Benefits National Life of Vermont New York Life North American Mortgage Northwestern Mutual Life Norwest Financial
Pacific Mutual Prudential Advantage Prudential Insurance Southwestern Life Insurance Standard Charter Mortgage Sunway Assets United Bank Val-Equity VNB Mortgage Corp. Waterfall Economidis Waterfield Mortgage Nonprofits CODAC Community Partners of Southern Arizona COPE Behavioral Health Services El Rio La Frontera SouthEastern Arizona Behavioral Health Services Tucson Urban League
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1. 101 N. Wilmot Rd. 2. 33 N. Stone Ave. 3. Williams Centre 4. 333 & 335 N. Wilmot Rd. 5. Mary Louise Robins Elementary School
Realty Firms Bankers Properties Burke Hanson Corridor Executive Title Cushman Wakefield Del Webb Offices Grubb and Ellis ILIFF Thorn JMB Properties Minnesota Title Stewart Title Texas Gulf Western The Mack Company Title Guarantee U.S. Life Title Legal Firms Barton Duncan Bilby and Shoenhair Eppler Guerin & Turner Healy & Beal Hirsh Jerry Sonenblick www.BizTucson.com
Jurkowitz & Kahn Kimble Gothreau Kingston Associates Linden Chappa Fields Malloy, Jones, & Donahue Morton Saull Schorr Eldridge & Bangs Slutes Sakricon & Rogers Snell & Wilmer Streich Lang Winston & Strawn Stock Brokerages A.G. Edwards Charles Schwab Dean Witter Dunn Edwards E.F. Hutton Paine Webber Prudential Bache Prudential Securities Scottsdale Securities Shearson Lehman Hutton
Call Centers AT&T Ageis Convergys Milliken & Michaels United Physicians United Plus Healthcare Carondelet Health Network – St. Joseph’s Hospital – St. Mary’s Hospital Community Health Systems Hanger Northwest Medical Center Oro Valley Medical Center Pima Heart Hospital Tucson Medical Center The University of Arizona Health Network
Miscellaneous Firms American Board of Radiology Arizona Contract Physicians Arizona Kidney Disease & Hypertension Centers BHP Billiton C-4 Marketing CH4M-Hill Architectural Goodmans Hearing Innovations HMW Munoz & Associates Interglobal Joint Technical Education District Kimberly Services Muscular Dystrophy Association Paul Harris Travel Sam Levitz The Olsen Corporation Transworld Systems Tucson Access Center Ventana Medical Systems
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BizCONSTRUCTION
From left to right –
Delbert D. Dittmer Owner & VP, BFL Construction Garry Brav Founder, BFL Construction Dave Winsor VP, BFL Construction
Streamlined Building Process By Sheryl Kornman Dave Winsor worked in home construction for 28 years before he joined BFL Construction in 2008. Though he’d worked his way up to VP of two major homebuilders, after the recession hit and housing starts fell, he was laid off. A few days later, he was on the job for BFL as a construction manager in Green Valley for Fairfield Homes. Today he is VP for BFL. A sister company – Preferred Apartment Builders – is building single-family luxury rental homes in gated neighborhoods at 11 locations in Southern Arizona. The work requires precise production construction scheduling, with eight housing starts a week. Winsor said the concept is well designed and engineered to make construction move easily from start to finish. He hires the same subcontractors site
to site, guaranteeing work flow for PAB and ongoing employment for the subcontractors. PAB is completing each of the homes in about two months. Because all housing units are located at the same parcel, Winsor is able to obtain all the housing permits at once. “By the time the first 40 homes are built, we have all the rest of the units in the ground,” Winsor said. The schedule allows three superintendents using Smart Phones and IPads to monitor the construction of 184 units at once. “It’s very efficient,” he said. “Water and sewer for the entire site come online at once. Electrical is phased in as homes are completed. It’s not a classic commercial or residential product. It’s a hybrid.” Project managers are also the project estimators and they continued on page 190 >>>
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BizCONSTRUCTION continued from page 189 are on the job from the start, helping to manage costs from the beginning. Throughout a project, costs are carefully controlled. Like Garry Brav, president of BFL Construction, Winsor concentrates on every detail. “A fifty dollar extra cost per home can be the difference between success and failure when you multiply it by 184 homes.” The rental homes are marketed to the consumer as AVILLA in one-, twoand three-bedroom floor plans. The countertops throughout are granite and flooring is plank vinyl. Energy-efficient kitchen appliances are stainless steel and washers and dryers have a high efficiency rating. Clerestory windows brighten each room with natural light. The rental neighborhoods are professionally managed. The houses are leased as soon as they are completed. Winsor, recently named a VP for BFL, completed his bachelor’s degree in business administration at the University of Arizona in 1977 and has worked in the construction business ever since. He was with Richmond American for 18 years and D.R. Horton for six. He
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We have the capacity to do 500 houses in Tucson and 500 in Phoenix next year. Dave Winsor, VP BFL Construction
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was a VP for each company, supervising construction on thousands of homes. Winsor said he oversaw construction of a thousand homes a year for both of the home builders, growing both companies from 300 units per year to more than 1,000 units annually. When he arrived at PAB, “we were at zero and we are now near the top in
number of permits pulled per year in Pima County. “We have the capacity to do 500 houses in Tucson and 500 in Phoenix next year,” Winsor said. “Not only have we given struggling subcontractors work, but we have given them a steady flow of work. It puts them in a situation where they can hire and plan. It’s been very gratifying. I’ve been very fortunate to work for larger builders all my life and now I have the latitude to create a business environment where we don’t back charge,” Winsor said. “If a subcontractor accidently breaks a window, we pay for it,” he said. “We’ve also created a model in which the success in the occupancy rate compared with three-story walkups is appealing to the lending institutions.” Winsor said investors were able to locate properties and commit to this luxuryhome neighborhood concept early on. “I’m just lucky to be able to execute it,” he said. “I’ve always had the most satisfaction in providing a livable space at a cost per square foot that people can afford. And I’ve always been gratified to come up with a good cost per square foot.”
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BizCOMMUNITY
Julie Culver President Partners for Housing Solutions
Affordable Housing Solutions By Sheryl Kornman Affordable housing expert Julie Culver moved from the public sector into the private to establish Partners for Housing Solutions, a new company that creates business opportunities for investors and property owners – and shelter for low-income families, developmentally or physically disabled individuals, seniors and military veterans and their families. Well schooled in the complexities of developing housing in a market-rate world, this work is where her heart is. Culver has two relatives who live in other states who have developmental disabilities and have had to struggle to find stable housing, medical and other services. www.BizTucson.com
What she is doing now will help individuals in that same situation to find a safe place to sleep, with supportive services from behavioral health agencies. Partners for Housing Solutions can help nonprofit organizations, builders and real estate investors, Culver said. It’s a winwin way to address a very real community need. Culver formed a relationship with BFL Construction to provide design-build-construction services for her projects. She knows the construction service component has the potential for problems that can derail a project. “BFL’s experience provides the risk management necessary to assure project success.” continued on page 194 >>> > > > BizTucson 193 Winter Winter 2014 2014
BizCOMMUNITY continued from page 193 Finding affordable housing is a problem, especially in Tucson and Pima County, where there are more than 10,000 people on the waiting list for 5,400 Section 8 vouchers. Where do these people go for help? This current demand started with the recession and as more and more people lost their jobs, they lost their homes and they began looking for alternative living arrangements – and that usually means rentals. As a result, prices have increased and it’s difficult to find a rental because of the demand. The fact that there are a finite number of both vouchers and rental units creates a rental bubble, Culver said. “I’m looking for new ways to create affordable housing. It’s not that there aren’t lots of units that need to be rehabbed, but my goal is to provide more than rehab. Rehabilitating existing units is important, but to be able to provide additional housing units is my focus.” Finding the money for subsidized housing requires tenacity and research – and Culver has the right mix of educa-
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tion and experience, both as a bank loan officer and risk assessment officer for the State of Arizona Department of Housing, where she made sure allocations of state resources were appropriately utilized. She’s also completed coursework for a master’s degree in urban planning at the University of Southern California. “There are a limited number of programs that will help with affordable housing, so I keep current on when new funding rounds are opening, how much money is available and the targeted populations. It’s a process that is ongoing. Maximizing resources to develop as many housing units as possible is a challenge.” Today’s affordable housing is not built as infill in parts of town where no one wants to live, she said. “The state wants housing built close to public transportation and retail stores, charter or public schools with high performance ratings, and requires services and amenities be provided to residents.” Her road to Partners for Housing Solutions began in Los Angeles, where she
attended the University of California Los Angeles part-time to earn a bachelor’s degree while working in banking. It took her 16 years of working and going to school to get there. During that period she worked in the real estate division of Bank of America and later as a VP of First Los Angeles Bank. “My focus was on construction loans for builders of entry-level homes.” That was more than 20 years ago. She developed the interest and desire to develop affordable rental housing. Now her focus is on helping nonprofit organizations create relationships between housing and the services they offer. “More and more nonprofits are beginning to understand that if there is a lack of integration between housing and their services, their services are not as effective. For example, someone who is homeless needs services, healthcare and shelter in order to stabilize,” she said. “It has to be an integrated solution.” The nonprofit has an ownership interest in the housing and provides community support through the housing. It
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becomes eligible for tax credits by forming a partnership or LLC with the equity investor. Rental fees are set by HUD. Affordable housing may be affordable to the renter – but there is no cost-cutting in the construction of this type of housing. “People call affordable housing low-cost housing and that’s not true. Comparatively speaking, it still costs the same amount of money to build. It’s the rental amount paid by the tenant that makes it ‘affordable.’ Affordable housing relies heavily on government subsidy to build.” Typically, developers will set their rent and income levels between 40 and 60 percent of the area median income
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Julie Culver, President, Partners for Housing Solutions so they are targeting a particular segment of the population that is considered low income. “I welcome the opportunity to explain the housing programs to nonprofit organizations because there is a learning curve. I can provide information and some direction that will help them make a decision about entering the affordable housing market. The differences between affordable and market rate housing, especially with a program such as the Federal Low Income Housing Tax Credits, is very complex and the financial structures are very different.” Culver points out what most experienced real estate investors accept – that
there is always risk associated with real estate development. But with affordable housing, it’s pretty much a win-win for all. “Rents are kept affordable for 15 years, that’s mandatory, then 15 more years by extension. It really helps the economy. It puts people to work and provides long-term affordable housing for the community. It’s also good for the nonprofit organization – they become more invested in the community.” She’s passionate about this affordable housing venture. “This really is where my heart is.”
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Roger Karber Real Estate Developer
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BizDEVELOPMENT
Luxurious Gated Homes No Mortgage By Sheryl Kornman Real estate developer Roger Karber’s move into luxury rental housing began 10 years ago with development of the Finisterra Luxury Rentals community at Tanque Verde and Kolb Roads. He sought out Garry Brav, president of BFL Construction to handle construction. Together, they brought in investor G.S. Jaggi, managing director of Iridius Capital. Until then, most Tucson-area multifamily communities were built like caves, Karber said. They had three shared walls, little privacy and low ceilings. Most amenities were on the outside – in clubhouses, exercise rooms, community pools, spas and tennis courts. But Finisterra broke that mold. Finisterra apartments offered consumers an Olympic-sized pool, nine-foot ceilings, ceramic tile flooring, built-in flat-panel TVs under kitchen cabinets, fire sprinklers, security alarms, private balconies and patios – even a three-bedroom twobath option at 1,300 square feet. Finisterra residents moved in as quickly as buildings could be constructed and remains one of the industry’s top performers today. That success led Karber, Jaggi and Brav (now also CEO of BFL Ventures) to explore just how far they could stretch the product evolution – ultimately set-
tling on single-story detached luxury rental homes in gated neighborhoods. Operating as Alta Vista Communities
Today fewer individuals see a home with a mortgage as their best long-term housing solution, Karber said – especially when they can rent a new luxury home that is managed professionally. For their projects, the investors hired a woman-owned local affiliate, MEB Management Services, recognized for its consumer sensitivity. Today, operating as Alta Vista Communities, Karber and his partners are developing 11 single-family detached luxury rental home communities in the Tucson area. The properties, which are marketed to consumers as AVILLA, are in various stages of completion. Karber has nearly 40 years of Arizona real estate experience. He began in real estate while studying business at Pima Community College – on the advice of his father, a union pipefitter whose friends were helping to construct the Alaska pipeline back in the mid 1970s. The pipefitters were looking for investments and Karber’s father suggested Tucson real estate. With support from these small investors, Karber and his wife, Diane
Fitzpatrick, began buying and renovating rental houses, then moved up to 10-plexes, and on to 20-, 36- and even 40-unit apartment buildings, primarily in the University of Arizona area. They improved the properties and sold them, mostly to California investors. They also participated in the 76-unit conversion of the Tucson Inn annex into student rental apartments supporting Pima College’s new Downtown Campus. Karber’s early success as an entrepreneur encouraged him and he wanted to make real estate development his life’s work. He interviewed with Roy Drachman, Perry Bassett, George Mehl and Joe Freidheim, telling them he would work for free while studying economics and real estate. “I just wanted a chance to learn how to be a developer,” he said. Focusing on the Consumer
His interview with second-generation homebuilder Bill Estes Jr. paid off. He offered him a fulltime position developing large new rental communities. His new boss told him to keep studying business but get the job done – and he did. That was 1979. Karber’s first project for Estes was planning hundreds of apartments on a 40-acre site at Pantano Road and Fifth continued on page 198 >>>
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BizDEVELOPMENT continued from page 197 Street in Tucson. His second was planning an apartment community on 76 acres at Pantano and 22nd Street. “It was a great opportunity and I was ready for it,” Karber said. He completed more than 2,700 apartments in Tucson and Phoenix for Estes, working on both the construction and finance sides. With business partners, he formed ASR Investments, then merged it with the largest apartment real estate investment trust in the country, managing the acquisition of thousands of apartment units. And in a unique move at the time, Karber was able to broker group-rate cable contracts, using collective bargaining, for 80,000 apartment units in five states. With the fees from that deal, he started his own real estate development company, Karber Realty Advisors, always watching for changing consumer needs during ups and downs in the economy. He learned while working for Bill Estes Jr. that “you cannot lose focus on what the customer wants, what they can
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afford and what it takes to truly satisfy their needs,” Karber said. “Rather than analyze what would work best for us as a company, Estes would focus on the consumer.” Bill Estes Sr. started his real estate development company in 1947 and by the time he left it as a private family owner, the company had built more than 40,000 Arizona housing units. Growing Demand for Detached Luxury Rentals
In the early 2000s, Karber began to see that consumers shopping for rental housing were “losing their attraction to the traditional amenity packages that focus on the external” – the large clubhouse, exercise facilities, spas – and “nobody was giving them a choice. Consumers want choices. What they wanted was more amenities on the inside,” he said. “We listened carefully and found there was a growing desire to have a detached luxury rental, where the maximum amount we put into it would go inside the individual family’s home and into private rear yards and upgrades – including higher ceilings, better quality
energy-efficient appliances and nicer finishes.” Karber saw that consumers in their late 20s, 30s, 40s and on into their 70s were less interested in a mortgage and were turning to other methods of growing financial security. “The necessity of buying a house has gone away,” Karber said. He and his investors now offer the concept of home in professionally managed new, gated neighborhoods. The rental home builder is BFL affiliate Preferred Apartment Builders. The business brands are Aerie Development and Alta Vista Communities and the consumer brand for all sites is AVILLA. The partners are also expanding the concept to properties outside Arizona under the business name NexMetro. By simplifying the plans for the homes, PAB is able to construct them quickly, efficiently and with precision, Brav said. GPS is used to locate utilities. This allows trenching for all the homes to be completed before slabs are poured in a production-line manner. Karber said he knew Brav’s reputation as a precision builder and his experience with
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complex commercial projects such as hospital operating rooms and bio-tech facilities would be important to the success of Alta Vista Communities. Using Technology to Speed Process
Brav said plans are digitized for simultaneous distribution, project managers work with Smart Phones, iPads, and laptops, and data is stored in the Cloud so that projects move smoothly to completion in record time. Communication is first and foremost throughout the process, which is supported by a solid, structured administration. Production savings are re-invested in the home features that make the AVILLA product so appealing to residents. AVILLA home sites and surround-
ing areas are landscaped with native vegetation, with an emphasis on color throughout the year. The homes’ initial exteriors were built in classic Territorial style, blending easily into their surroundings. Newer communities are being designed with desert contemporary exteriors, as part of a continuing effort to evolve the product. Each rental neighborhood has a community swimming pool, hot tub and ramada. Residents have covered parking and the option of garage rental. The detached homes have private, gated backyards and clerestory windows atop traditional windows, similar to those in custom homes. The kitchen countertops, breakfast bars and bathroom vanities are granite, energy-effi-
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cient appliances are stainless steel and full-size washers and dryers are front loading. Ceilings in all the homes are 10 feet throughout. The first Tucson-area locations to be completed are near Orange Grove Road and La Cholla Blvd., River Road west of Oracle Road, Thornydale and Ina Roads, Sabino Canyon Road near River Road, and Tanque Verde Road at Wrightstown Road. “They rent fast as we can construct them,” Karber said. The developer said he still remembers how he felt as a young man moving out of his parents’ home and into his first apartment: “That apartment was my palace.” And Karber knows that what the AVILLA consumer wants most is “that same feeling in their home.”
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We listened carefully and found there was a growing desire to have a detached luxury rental. –
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Roger Karber, Real Estate Developer
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BizVENTURE
From left to right – G.S. Jaggi, Josh Hartmann, Don Diamond, Ken Abrahams, Marc Sandoff, Roger Karber, Garry Brav
Sunny Future for Luxury Rental Homes By Sheryl Kornman Embracing new opportunities in 2012, Garry Brav and the Alta Vista Communities partners joined with Don Diamond, Ken Abrahams and Marc Sandoff to create NexMetro Communities – a venture to develop and build luxury rental home neighborhoods in Phoenix and other Sunbelt cities. As investors in Alta Vista rental home 200 BizTucson
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projects, members of the new venture saw the keen consumer interest in luxury rental homes and the potential for expanding into other markets. BFL Construction through its affiliate, Preferred Apartment Builders, will build the NexMetro rental home neighborhoods in Arizona and provide construction management support in mar-
kets outside of Arizona. NexMetro’s six principal owners together have more than 200 years of experience in the development and operation of nearly $3 billion in real estate projects in the Southwest. Joining Brav are Ken Abrahams, who has 30 years of experience successfully continued on page 202 >>> www.BizTucson.com
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When I first toured the rental home neighborhood and homes, I immediately knew it was a winner and I wanted to be involved. –
continued from page 200 developing real estate in diverse regional markets and is chairman and CEO of NexMetro Communities; Alta Vista Communities partner G.S. Jaggi, managing director of Iridius Capital; Roger Karber, an experienced apartment developer and operator; entrepreneur and investor Marc Sandoff, and financier and developer Don Diamond “When I first toured the rental home neighborhood and homes, I immediately knew it was a winner and I wanted to be involved,” said Diamond.
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Don Diamond, Partner, NexMetro Communities To help map the future of NexMetro, Abrahams engaged a research team to examine and validate the housing product, identify key consumer demand and acceptance characteristics, and determine markets where the product could be successfully deployed. The research findings inform and guide NexMetro’s plans for the future. Built on Research & Relationships
Because NexMetro’s plans involve rental home neighborhoods in markets beyond Tucson and Arizona, the company is adapting the designs to suit oth-
er market conditions and local consumer preferences. NexMetro will continue to offer discerning renters, single-story detached rental homes in gated neighborhoods, in highly desirable locations, featuring luxury appointments and high-end finishes, private backyards and community pools and spas. The research also found that societal changes that have been in play for nearly a generation, combined with the prevailing economic conditions that persist after the great recession, favor the rental homes. Many home renters do not want to rent a traditional single family home
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NexMetro offers a better rental option to serve the changing way many Americans think and feel about home ownership. –
with the associated maintenance obligation. Furthermore, many potential homebuyers remain wary of home ownership as a sound investment. Abrahams cited national housing market research by Morgan Stanley which notes that these factors are “moving the country towards becoming a Rentership Society.” “NexMetro offers a better rental option to serve the changing way many Americans think and feel about home ownership,” Abrahams said. NexMetro residents enjoy uncompromising quality with freedom from
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Ken Abrahams, Chairman & CEO, NexMetro Communities a mortgage and maintenance, while providing privacy and a true-lockand-leave lifestyle. One, two and three bedroom energy efficient homes have high-end finishes, including granite countertops, stainless steel appliances, upgraded flooring, private walled-in backyards and clerestory windows that flood rooms with natural light. Researchers identified several consumer segments of the population that would be attracted to the luxury rental homes – including two income households with no children, empty nesters/ pre-seniors and financially solid work-
ing single people. As the primary decision makers, women are particularly attracted to rental homes that feature privacy, luxury home appointments and professional management and maintenance. Location is always important. Gated rental home neighborhoods are located in highly desirable and established residential areas – places where people want to live with nearby conveniences, services and amenities. continued on page 204 >>>
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continued from page 203 Uncompromising Quality
Aerie Exceptional Rental Homes was the initial luxury rental home brand created by Alta Vista Communities, consisting of partners Brav, Jaggi and developer Roger Karber. After evaluating the long-term potential of rental home neighborhoods and homes in Arizona and other Sunbelt markets and cities, Alta Vista and NexMetro reviewed the Aerie brand and elected to adopt AVILLA as the future consumer brand for all existing and future rental home communities. “We want to build a strong brand at the enterprise level, at the project level and at the consumer level,” Abrahams said. “Brand consistency is important. We want the consumer to really understand the continuity and integrity of this, like any well-branded product.” MEB Management will lease and manage Alta Vista and NexMetro properties. The regional firm has more than 20,000 apartments under management and 15 years of experience successfully
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managing rental properties, including single-family homes in Arizona and other Sunbelt states. “MEB is part of our team. They truly understand our product and are a key part of our success,” Abrahams said. “They’ve done a terrific job leasing and managing the hundreds of luxury rental homes completed in Tucson and Marana,” Karber said. MEB has been on the job on all Aerie Exceptional Rental Homes communities developed by Alta Vista and constructed by Preferred Apartment Builders. NexMetro Communities is built upon long-term relationships and strategic partners. At the core, the partners of Alta Vista and NexMetro enjoy longestablished business and personal relationships. In addition to MEB Management, strategic partners include the Thrasher law firm, Wells Fargo Bank, Alliance Bank and numerous architects, planners, engineers and marketing specialists. “Valued relationships and teamwork are vitally important when managing a growing enterprise” said Sandoff who
has guided many growth-stage enterprises. Simplified Expression of Design
NexMetro also partners with municipalities, community leaders and nearby property owners where AVILLA neighborhoods are planned. The AVILLA neighborhood is a low- impact land use that can fit comfortably into established residential areas where otherwise traditional apartments or high- impact commercial uses would typically be developed. NexMetro, along with governmental and community partners, seeks to create long- term asset value for the community as well as for its investors and lenders while providing a needed housing alternative. The partners acknowledge there is always risk in real estate investment, yet all those involved in NexMetro “have tremendous range and reach – which serves to help with risk management and protect the downside,” Jaggi said. The construction process is one way that risk can be managed. The integration of construction management into
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BizVENTURE
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Valued relationships and teamwork are vitally important when managing a growing enterprise. –
the ownership team provides a significant level of involvement and alignment of interests. Throughout the entire process, improvements are made to both accommodate renters’ desires and improve the efficiency of construction. For example, Brav said, “master bedrooms have been enlarged to accommodate a king-sized bed and establish a true master suite.” Various industry benchmarks and metrics are used to keep work moving efficiently and accurately. GPS is used to locate utilities within one inch of
Marc Sandoff, Partner, NexMetro Communities the future slab so that trenching can be completed before any pads are poured. Homes are built efficiently and to high standards by experienced subcontracting crews whose safety is monitored by onsite project managers. Local building inspectors are cooperative and timely, ensuring the efficient execution of each product. “The sophistication and complexity of the product can be easily under estimated,” said Brav. “The building systems and components used to execute them guarantee a long-lasting product,”
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he said. “It’s very efficient to build, to operate and to live in – and that efficiency is because of a simplified expression of design. It ‘lives’ fairly low-tech. Lift the hood and there’s a sophisticated level of planning, process and application of building methods and systems.” NexMetro anticipates breaking ground in Phoenix and Dallas in 2014 with expansion into other western Sunbelt markets by 2015.
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BizTucson Magazine is published quarterly by Rosenberg Media, LLC.,Tucson, AZ © 2014 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. For information regarding advertising or subscriptions, please contact Steve Rosenberg at 520-907-1012 or, steve@BizTucson.com
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David Williamson President & CEO Fairfield Homes AZ
BizDEVELOPMENT
Second-Generation Home Builder By Sheryl Kornman left the famous singing trio to raise her Fairfield Homes AZ is developing six sites for new homes in Southern Arichildren, David and Rex, in Calgary, zona. For five of the projects, President Alberta, Canada. David’s collection of his mother’s gold records and father’s and CEO David Williamson teamed WWII memorabilia, including his Purwith partner Garry Brav, president of ple Heart, is displayed in his office. BFL Construction. The family moved from Canada to Williamson worked with Brav on commercial projects and knew their Paradise Valley, near Phoenix, and Lowcombined experience would make an ell began to buy land in Southern Ariideal homebuilding team. “Garry has a lot of integrity. He’s a very bright man who knows construction.” Williamson is a second-generation developer who has already left a legacy in the desert. He partnered with his father Lowell Williamson and Paul F. Oreffice, of Dow Chemical to acquire the publicly traded Fairfield Homes’ brand in the early 1990s. Residential developments included more than 10,000 homes in Green Valley and Tucson. Fairfield in the Foothills, a community in the Catalina foothills, was one of the company’s most notable early projects. David learned the real estate business working alongside his father. They were – David Williamson partners until his father died in 2012. President & CEO His dad grew up in the Great DepresFairfield Homes AZ sion and studied music. But his educa- tion was interrupted by military service. Flying a B-17 mission toward the end of zona. David left Vanderbilt University World War II, the plane was shot down to join his father and learn the business over Germany. He spent the remainder of real estate. of the war in a POW camp. The expeIn the 1970s, Lowell bought 2,000 rience changed him, and with strong acres of Rooney Ranch. On 500 acres, he built the first destination resort in determination, he moved on to become a successful oil explorer in the United Tucson – now the Hilton El ConquisStates and Canada. tador Golf & Tennis Resort. It featured Through a serendipitous introducthree golf courses, 31 tennis courts, tion, he met one of the McGuire Sisa swimming pool, hiking and jogging ters, Dorothy. They married and she trails, horseback riding and fine dining.
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The J-6 Ranch is a really beautiful place, cooler, with a higher elevation than Tucson, at 4,300 feet.
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Each room has a view of the mountains. The remaining acreage from this purchase became the modern-day sites for Honeywell and La Reserve. On the eastside, the partners bought 320 acres located at the corner of Sabino Canyon Road and Snyder Road, now the gated community Sabino Mountain. In 1987, the company purchased 540 acres in Green Valley. With more than 1,200 homes built, this is now the Fairfield Homes’ community Las Campanas. The company is currently building the remaining 300 of the 1,590 lots. Homebuilding was a successful part of the Williamsons’ business ventures. From the mid-1990s through early 2000, Fairfield Homes built 250 to 300 homes a year in Green Valley. With a shift in the economy, the company took a break from developing homes and sold sites to Meritage Homes and Pepper Viner Homes in 2001. The Fairfield Homes name and brand, however, remained with the company. David continued with land development and land purchases. The company owns four golf courses and a hotel – the Wyndham Canoa Ranch Hotel in Green Valley. In addition, he sold the site for Green Valley’s first hospital, currently under construction. In 2008, he returned to homebuilding, joining with Brav to form Fairfield Homes AZ – a nod to the brand that has been widely recognized in the region for nearly 40 years. Williamson leads the business end while Brav focuses on construction, his expertise for the past four decades. continued on page 208 >>> > > > BizTucson 207 Winter Winter 2014 2014
BizDEVELOPMENT continued from page 207 In Green Valley, the partners have three sites within the 6,400-acre Canoa Ranch property – the Villas with 40 lots for townhomes, the Estates with 24 lots for single-family homes and the upcoming Resort Villas with 28 lots. Canoa Ranch also includes a mix of commercial with offices, a hotel and an 18-hole golf course on the property. David is partnering with American Land Fund for a future phase of Canoa Ranch, including 1,500 home sites. The company recently broke ground on J-6 Ranch, where they partner with Redhawk on 150 lots. The homes will be 2,000 to 3,300 square feet on 3.5acre parcels. The area features vast grasslands and is about 10 minutes east
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of Vail and 30 minutes from downtown Tucson. “It’s a really beautiful place, cooler, with a higher elevation than Tucson, at 4,300 feet,” David said. With 70 lots, Fairfield Homes AZ will be one of the largest builders in the private residential golf community of Stone Canyon, located in Oro Valley. The semi-custom homes will be along the Jay Morrish-designed golf course. Rock formations and varied elevations offer a unique landscape for homebuyers – but can require special considerations in the homebuilding process to preserve natural rock outcroppings. “Care is taken to preserve the landscape,” Brav said. In addition to innovating for each site, Fairfield Homes AZ keeps an eye on
changing consumer expectations – especially retirees. According to the partners, green-building principles, modern recreation centers and additional amenities that help contribute to an active lifestyle have become increasingly valuable to homebuyers. “Retirement is evolving. How people retired 20 years ago is not how they retire today,” David said. Projects on the horizon for Williamson include developing an area west of the Biosphere for a new community called Cielo. David expects to build 3,000 homes on 4,000 acres – starting in 2017. “It’s a nice opportunity for the future,” he said.
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Garry has a lot of integrity. He’s a very bright man who knows construction. –
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David Williamson, President & CEO, Fairfield Homes AZ
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BizINVESTMENTS
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G. S. Jaggi Managing Director WindRock Wealth Management Brett K. Rentmeester President & Chief Investment Officer WindRock Wealth Management 210 BizTucson
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Trusted Quarterback Wealth Advisors By Sheryl Kornman WindRock Wealth Management is a new independent inoptions, emerging real estate projects led by respected comvestment management firm based in Tucson that seeks out inmunity-based entrepreneurs. Enter Garry Brav. He and Jaggi partnered in the successnovative investment opportunities for entrepreneurial-minded investors. ful development Finisterra Luxury Apartments, built by Brav’s The principals at WindRock believe that the mainstream Preferred Apartment Builders. WindRock clients have exclutraditional stock-and-bond portfolio will fail to deliver satisfacsive access to opportunities that Jaggi and Brav pursue through tory results for investors in the decade ahead. They are finding their operating company Alta Vista Communities. Today that opportunity is AVILLA – a gated-communipromising investment solutions beyond Wall Street for highwealth individuals and business owners. ty luxury home product being built throughout the Sunbelt The WindRock founders are seasoned financial adviser states. Jaggi said this concept is striking a chord with a growing Brett K. Rentmeester and successful entrepreneur and invesdemographic of Americans who don’t want to own a home tor G. S. Jaggi. – including empty nesters, single working people and pre-seRentmeester has been advising niors who want the freedom of renting luxury homes in communities of likeCEOs on investments since he was 22 minded individuals. – first as a manager of Arthur Ander“Luxury rental real estate is a great son’s Private Client practice, then as investment niche for the economic co-founder of a wealth management times ahead. It’s shelter. It’s fundagroup in Chicago that grew to $3 bilmental. Demand will remain strong,” lion in assets from 2002 to early 2013. Rentmeester said. He’s a magna cum laude graduate of the University of Arizona and “At WindRock, we bring clients inholds an MBA from Northwestern novative, interesting opportunities that University. Rentmeester serves as are hard to find, that investors don’t WindRock’s president and chief inhave access to at most investment vestment officer. firms. We partner with well-respected WindRock’s co-founder Jaggi is entrepreneurs like Garry Brav. That’s also managing director of Iridius how you find compelling investment Capital in Tucson, a private investopportunities,” he said. ment firm offering WindRock clients “We play a trusted quarterbackexclusive access to opportunities in adviser role, serving as a client’s adreal estate, private lending and invocate.” WindRock works in coopera– Brett K. Rentmeester ternational cross-border investments. tion with that individual’s or business President & Chief Investment Officer Jaggi previously was founder and owner’s team of advisers, including WindRock Wealth Management CEO of First Magnus Financial. attorneys and accountants. Rentmeester’s been Jaggi’s wealth ad“We deal with a more sophisticated visor for many years. client who wants someone who can help them navigate what They formed WindRock after “we found we had similar phihas become a more and more complex financial environment. losophies” regarding entrepreneurial investments, Jaggi said. By understanding their overall wealth, we become a trusted Both invest in the projects they recommend to their clients. voice.” “We are a unique option for investors who share our enWindRock has offices in Tucson and Chicago, serving clitrepreneurial mindset,” Jaggi said. Clients are encouraged to ents nationwide. think globally in a changing world about their financial future In today’s economic environment, innovative investment and look beyond stocks and bonds – to consider, among other continued on page 212 >>>
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We partner with well-respected entrepreneurs like Garry Brav. That’s how you find compelling investment opportunities.
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BizINVESTMENTS continued from page 211 solutions for wealth management are more critical than ever, Jaggi said. “We pay close attention to macroeconomics – the big picture of the world.” To preserve wealth and make money, investors need to address two key challenges ahead. “In the near term there is a struggle to find reasonable returns in a world of zero interest rates. In the longer term, inflation is the major unforeseen risk,” Rentmeester said. “Clients must position for this looming inflationary risk – a result of too much debt, unsustainable spending and unprecedented money printing.” Rentmeester and Jaggi see the common way of investing money as an out-
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dated model. It assumes things are normal most of the time. Rentmeester said the stocks and bonds world has been good for 40 years driven by declining interest rates – but stocks and bonds are no longer poised to benefit in a future of higher interest rates. “The writing is on the wall that we will stay in a weakened low-growth world – here, in Europe and Japan,” Rentmeester said. “To counter those forces, governments are printing money – to attempt to paper over the weakness,” he added. “It’s a dangerous game with a bad outcome. Policymakers are once again inflating financial bubbles and creating dangerous imbalances. While they have temporarily postponed the problems, they have failed to address the roots of
the 2008 crisis – which are still all there, only bigger.” To protect clients from the forces ahead, WindRock advocates allocations in tangible or hard assets – investments such as precious metals, farmland and real estate. “The better path for high-wealth clients is to invest in things like emerging real estate opportunities – luxury rental homes in gated communities and farmland in the Midwest leased to tenant farmers. Investments like these can provide a more reliable return if inflation returns,” he said. WindRock is rooted in a passion for collaboration in the spirit of entrepreneurship, Jaggi said. “We think like business owners – because we are business owners.” Biz
We pay attention to macroeconomics – the big picture of the world. –
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BizMILESTONE Garry Brav
CEO, BFL Ventures
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Garry is a connector of people, ideas and financial resources. –
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Brenda Goldsmith, Executive Director El Rio Health Center Foundation
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Building Community By Sheryl Kornman Garry Brav’s success over the past 40 years began with BFL Construction. The visionary entrepreneur has since diversified into a “family of companies” including BFL Ventures – through which he invests in emerging technologies developed in the region and is involved with a host of community nonprofits. Brav serves on the Southern Arizona Leadership Council and has for the past two years, along with other big business leaders and small business owners. The group identifies regional issues and business opportunities, and provides collective leadership to improve the economic climate and quality of life in the region. Brav supports the Science Foundation of Arizona and, through venture capital activity, encourages the expansion of bioscience ventures in the community. He participates in Desert Angels, an organization of accredited investors who meet monthly seeking opportunities to invest in early stage or startup ventures in the Southwest. The more than 95 members have invested $25 million since 2000 in more than 60 companies. Companies selected for funding are developing cell-based therapies for HIV, therapies for colon cancer, labware for genetics research, sports nutrition fruitflavored energy gels, a GPS tracking device children can wear. The investors are also funding commercialization of the SynCardia temporary CardioWest Total Artificial Heart. Investors have supported a biomedical nanotechnology company developing therapeutic approaches to cancer, traumatic brain injury and stroke, as well as a cryobank www.BizTucson.com
that allows individuals to store their fatty tissue and stem cells for use in cosmetic and reconstructive surgeries. Desert Angels also funds nonmedical technologies, including toys developed for children with special needs. More than 25 years ago, Brav began fundraising for the American Cancer Society, eventually serving as development chair and board chair. He began his association with the charity when a client urged him to get involved raising money for cancer research. His first act of charity for the nonprofit organization was a stunt. He went to “jail” in an improvised cell in the basement of University of Arizona Medical Center. He had to make successful fundraising calls to earn his way out. “It was fun and it made me feel good,” he said. “Now, we do a lot of charitable work.” BFL is the title sponsor for El Rio Community Health Center Foundation’s annual fundraising gala. BFL also supports the work of Tucson Values Teachers, United Way and other charities. At one point, 100 percent of BFL employees were donors to United Way. Brav said the construction work by BFL on six clinics for El Rio Community Health Center and for other nonprofit organizations – while not a donation of services – is especially rewarding for him. The new El Rio buildings bring medical services closer to the community health center’s populations. “Garry understands the nonprofit and for-profit sectors and sees the importance of both in creating a thriving community. He is a connector of people, ideas and financial resources – an
out-of-the box thinker and visionary who enjoys executing projects that will have an impact on the lives of others,” said Brenda Goldsmith, executive director of the El Rio Health Center Foundation. “He is an engaged business leader who understands the importance of developing a culture of philanthropy within his companies. He has been very supportive of El Rio Community Health Center and many nonprofit organizations – sharing his business expertise, serving on boards and being a generous donor.” BFL also built the Joint Technical Education District school building for Pima County’s publicly funded technical education programs, which help young people train for immediate employment in computer science, fire science, nursing, cosmetology, mining and automobile repair. “Everything JTED touches is just outstanding,” Brav said. In October 2013, BFL donated construction and related services to Edge High School, a nonprofit education organization that works with at-risk youth at two school sites in Tucson. The company installed new flooring and ceiling tiles, repainted, and added electrical capability for video conferencing in the school’s boardroom at the Himmel Park site. BFL also built publicly funded facilities for agencies that serve people with behavioral health issues, including Cope, La Frontera, CODAC, SouthEastern Arizona Behavioral Health Services, Tucson Urban League, Community Partnership of Southern Arizona and Primavera. Biz > > > BizTucson 215 Winter Winter 2014 2014
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BizHONORS
2013 Tucson Man of the Year
Mike Hammond By Romi Carrell Wittman Michael Hammond knew he would be leading the annual meeting of the Southern Arizona Leadership Council because he’s the chair. What he didn’t know was he would become part of the agenda. Suzanne McFarlin, executive director of Greater Tucson Leadership, asked to “borrow” the podium for a second to make an important announcement. When she announced that Hammond had been selected as 2013 Tucson Man of the Year the room erupted in applause. Hammond was taken aback. “Wow,” he said. When asked how it felt to receive the award, he said, “Undeserved – and truly an honor.” He’ll be among those honored at a gala presented by Greater Tucson Leadership on Feb. 7 at Loews Ventana Canyon. Hammond’s roots in the Tucson community go back to 1978, when he began his career in commercial real estate. Today he is president, founder and managing shareholder of Cushman & Wakefield ǀ PICOR Commercial Real Estate Services, a leading independent commercial real estate brokerage and management firm. Over the years, Hammond has given generously of his time and resources to help a variety of organizations in the community. He has also inspired friends, colleagues and staff to do the same. Don Bourn, founder and president of Bourn Companies, said Hammond is a mentor and an inspiration. “I have known Mike since the first day I moved to Tucson in July of 1986,” Bourn said. “He and his company PICOR have always been about community. Not only has Mike given a tremendous amount of personal time serving on boards and creating positive change, he has encouraged his entire organization to do the same.” In 1994, Hammond established the PICOR Charitable Foundation, an employee-run nonprofit that assists disadvantaged youth in greater Tucson. The foundation’s annual Pancake Feed, now in its 19th year, has raised more than $617,000 since its inception. PICOR employees raise all the funds and execute the one-day event, which serves pancakes to 2,500 people. In 2012, proceeds from the event benefitted a variety of youth programs. Under Hammond’s mentorship and leadership, 98 percent of PICOR’s 41 employees donate their time to community causes – with 73 percent giving two or more hours monthly and 41 percent giving ten or more hours monthly. PICOR employees put in, on average, 9.3 hours per month to charitable causes and community organizations. That equates to www.BizTucson.com
more than 4,600 hours annually. Hammond is also president and trustee of Community Finance Corporation, a private nonprofit organization that specializes in facilitating public-private partnerships to work with governmental entities and implement projects. The corporation has financed 10 projects since December 2000 and maintains a portfolio totaling more than $966 million. As a result of board policy created under Hammond’s leadership, CFC gives some $300,000 annually to the community. Hammond has received numerous awards for his community involvement. In 2013, Father’s Day Council Tucson recognized him as a Father of the Year and, in 2012, the Tucson Hispanic Chamber of Commerce named him the Bi-national Business Ambassador of the Year. Larry Aldrich, executive director of Arizona Business Coalition on Health, said Hammond’s commitment to bettering the community and the business landscape is well known and respected. “I have known Mike for more than 20 years and know how fortunate Tucson is that Mike built his business here. Mike is personally generous – with his time and money,” Aldrich said. “He has been a trailblazer in building business and other relationships with the business communities in Mexico.” Rob Glaser, who has been with PICOR for 28 years, said Hammond brings his focus and leadership acumen to everything he does – whether it be a business project or a community organization. “He is not afraid to lead,” Glaser said, “not for ego’s sake but because he cares about whatever it is that he is doing and truly wants to find a way to improve that organization.” Hammond is in his second year as chair of SALC, an action-oriented consortium of high-level business leaders in Tucson working collaboratively to improve the region’s economic climate and quality of life. “Mike’s leadership over the last year with SALC has been invaluable,” said Bruce Beach, chairman and CEO of BeachFleischman. “Mike is committed to addressing the needs of our community – including education, healthcare, state and local governance and economic development.” Lisa Lovallo, Southern Arizona market VP for Cox Communications, sums it up this way: “Mike has helped shape the Tucson community both as a business leader and as an invested member and friend. He is dedicated to the region’s economic development and enhancing the quality of life for all Tucson residents.”
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BizHONORS
2013 Tucson Woman of the Year
Keri Silvyn By Romi Carrell Wittman
Growth. No growth. Freeway. No freeway. Downtown center. No downtown center. Tucson has a reputation for not being able to make up its mind – and sometimes it feels like that’s been the story of the city since time immemorial. There have been about as many opinions on how Tucson should approach its future as there are people living in Tucson. This is what spurred Keri Silvyn to get involved in the community. She would eventually create and spearhead the Imagine Greater Tucson initiative – a regional visioning exercise that gathered the thoughts and opinions of more than 10,000 people on how Tucson and Southern Arizona should approach planning, zoning and infrastructure. This input was used to develop a collective roadmap for policy and decisionmaking across the region. This vision is currently either already part of or being incorporated into general plan policy documents for Pima County, City of Tucson, City of South Tucson and the towns of Sahuarita, Oro Valley and Marana. This leadership effort, along with her deep commitment to community, led to Silvyn’s selection as the 2013 Tucson Woman of the Year. She’ll be among those honored at a gala presented by Greater Tucson Leadership on Feb. 7 at Loews Ventana Canyon. Longtime Tucsonan Betsy Bolding said, “Like me, Keri is an adopted native Tucsonan who loves her community as if she were a native.” Silvyn, a Tucson resident for the past 25 years, earned her bachelor’s and law degrees from the University of Arizona. After working with Lewis & Roca, she started her own law firm – Lazarus, Silvyn & Bangs – which specializes in zoning and land use planning. U.S. News recently named the firm a Tier 1 nationally ranked firm in the area of land use and zoning law. In 2011, Silvyn was selected as one of 25 people in Arizona for the inaugural class of the Flinn-Brown Leadership Academy of the Arizona Center for Civic Leadership. She’s received numerous other awards, including Tucson Business Edge 40 under 40, American Jewish Committee’s Judge Learned Hand Emerging Leader Award and the YWCA Tucson Woman on the Move Award. www.BizTucson.com
Silvyn sits on the Tucson Medical Center Foundation board of directors and is actively involved in the Southern Arizona Leadership Council, Tucson Regional Economic Opportunities, Tucson Metro Chamber, Jewish Community Foundation and State Bar of Arizona. She also works with the UA James E. Rogers College of Law to mentor young law students, as well as Tucson Young Professionals. “Day after day, Keri demonstrates tremendous vision, exceptional talent, boundless energy and a deep commitment to the future of our region,” said Pamela Doherty, who worked with Silvyn on a number of projects related to IGT. “Thanks to Keri’s leadership and determination, IGT has brought residents, all six local municipalities, the business community, the university, neighborhoods and key stakeholders together.” Kim Bourn, a director with the Zuckerman Family Foundation, said Silvyn’s drive and energy are nothing short of amazing. “Her ability to see the potential in the region – and recruit individuals from all corners of the region to participate – was amazing. She did all of this while being a mother to three kiddos and a full-time zoning and land use attorney,” Bourn said. Silvyn was taken aback when her name was announced as the recipient of the 2013 Tucson Woman of the Year award. She was attending the Southern Arizona Leadership Council’s annual meeting at Lowes and wasn’t counting on being on the agenda. “It’s humbling – and startling,” she said. “I’m so appreciative of the honor.” She said the hardest part of being a leader isn’t the work. “You’re not always popular if you’re a leader. I had to learn that,” she said. Being a leader and bettering the community are clearly top priorities for Silvyn. “I was taught by my parents to leave the community a better place,” she said. Laura Penny, executive director of the Women’s Foundation of Southern Arizona, said, “Keri’s energy, passion and commitment to this community are unparalleled. I can think of no one more deserving of the Woman of the Year award.” Bourn echoed that. “Keri is elevating Tucson and bringing a diverse group of people together to make Tucson better for all of us.”
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PHOTO: CHRIS MOONEY
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BizHONORS
2013 Tucson Founders Award
Barbara LaWall By Romi Carrell Wittman
It was 6:30 a.m. in Los Angeles and Pima County Attorney Barbara LaWall was waiting for the scheduled phone call from Suzanne McFarlin, executive director of Greater Tucson Leadership. LaWall didn’t know the purpose of the call, but suspected it was something serious. When McFarlin told LaWall that she’s been selected to receive the 2013 Tucson Founders Award, LaWall exclaimed in surprise. “Really?” she asked. “Phone calls…it’s usually something terrible that’s happened. You’ve just made my day. This is truly a wonderful honor.” The award recognizes individuals who have demonstrated a significant and long-term dedication to the Southern Arizona community. The award was established in 1985 to augment the annual Man and Woman of the Year awards. Amelia Craig Cramer, an attorney in the Pima County Attorney’s Office, nominated LaWall for the honor. Cramer said, “Because of her leadership and vision, Pima County is a stronger, safer and better community.” LaWall’s ties to Tucson are deep. After graduating from the University of Arizona in 1976, she set out on a career as a high school English teacher. What she saw in the classroom opened her eyes to the inequities faced by children. The experience spurred her to return to school and obtain a law degree so she could effect meaningful change in the community. She joined the Pima County Attorney’s Office in 1976 shortly after her graduation from law school. In 1996, she was the first woman elected Pima County Attorney, an office she has held for 17 years, making her one of the longest serving elected officials in Pima County. She is currently in her fifth term. Under LaWall’s leadership, the frequency of violent crime in Pima County is less than half of what it was in 1996. In addition, her office has increased the percentage of violent offenders taken to trial – from 24 to 67 percent. During her 40-year career, LaWall has created a multitude of programs designed to improve the lives of Tucsonans. She’s also lent her support to numerous nonprofit organizations, including Tu Nidito Children and Family Services and the Women’s Foundation of Southern Arizona Unidas program, an after-school leadership and philanthropy program for high school girls. “There are few individuals who have done so much to benefit the Tucson area over such a long period of time as has www.BizTucson.com
Barbara,” said Pima County Sheriff Clarence Dupnik. In 1993, she spearheaded the creation of the Southern Arizona Children’s Advocacy Center, a nonprofit organization that provides forensic services to child victims of violent crime. In partnership with the Pima County Attorney’s Office, SACAC was able to purchase Russell, the Courthouse Dog. The 75-pound golden retriever is an assistance dog that helps crime victims, witnesses and others during the stressful stages of criminal proceedings. In particular, Russell has been a source of comfort to child victims as they provide testimony. In 1996 LaWall created a Special Victims Unit dedicated to the prosecution of sex crimes. She has also been a tireless advocate for victims and has worked to establish victims’ rights at the federal level and help to secure passage of a national victims’ rights constitutional amendment. She also led Arizona in the creation and passage of the Safe Baby Program. This law allows a mother to hand over a newborn to authorized healthcare personnel without risking prosecution for child abandonment, thus protecting unwanted infants from harm and even death. She developed a number of diversion programs to help juvenile offenders get their lives back on track. LaWall helped implement the AMBER Missing Child Alert program across the state and was instrumental in the passage of legislation that makes it a misdemeanor for minors to share or save sexually explicit photos, videos or other digital materials. LaWall also prepared a model zoning law to ensure medical marijuana dispensaries were not located near schools, day care centers or other places where children congregate. LaWall mentors and inspires those around her to do more in the community. She’s mentored dozens of young female attorneys who have gone on to successful careers as attorneys, instructors and jurists. Laura Penny, executive director of the Women’s Foundation of Southern Arizona, said, “There are few individuals who have done so much to positively impact Tucson over such a long period of time. Barbara has devoted her entire life to public service.” Cramer added, “She’s an extraordinary leader with great vision. Her efforts go beyond the mere scope of her duty to prosecute individuals who violate the law. She has been on the front lines of fighting crime for nearly 40 years and has been a tireless advocate for this community and its residents.”
Biz
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PHOTO: TOM SPITZ
BizMEDIA
Jim Arnold
VP & GM, Journal Broadcast Group 228 BizTucson
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Broadcast Career
Take 2 By Romi Carrell Wittman
Retirement just didn’t “take” for Journal Broadcast Group’s Jim Arnold. After a three-decade career in radio and television broadcasting, Arnold retired in 2010. Yet with broadcasting still in his blood, he didn’t spend that time relaxing. Instead, he crisscrossed the country working as a consultant and giving seminars to broadcast professionals on television station management. Arnold also spent a year caring for his terminally ill son, Jeffrey, who passed away last May at age 35 from a brain tumor. “Being retired and going through the loss, I had a lot of time on my hands and a lot of energy,” he said. He knew he needed something to do, and luckily, that’s when Journal Broadcast came calling. Journal was seeking a VP and GM to manage its Tucson operations, which include five radio stations, KGUN 9 and the CW network affiliate, as well as their digital operations. Headquartered in Wisconsin, Journal Broadcast Group owns and operates 34 radio stations and 15 television stations in 12 states. Arnold started at Journal last December. “It was a good match for my background,” he said. “The dynamic is much more complicated – and I’m busier than I expected to be. But I enjoy what we can do on a cross-platform basis. We’re the only media company that can offer that all in one location.” With some 154 employees to manage across a variety of platforms, Arnold adds that it has been a whirlwind. “It’s been fun. It’s been busy. I inherited a wonderful group of people.” Arnold’s history in broadcasting – and Tucson – go back a long way. He originally came to the Old Pueblo to attend the University of Arizona. Having worked at a small TV station in Indiana while still in high school, he already had an avid interest in broadcasting. In college, he was bitten by the radio bug and www.BizTucson.com
worked at several stations while studying for a degree in speech arts with an emphasis on radio and television. With a wife and growing family, he eventually quit school after completing all the requirements for his major. He considers working as morning DJ “Sunny Jim” at all-country KCUB in the 1970s the highlight of his career. In 1976, Billboard Magazine awarded the station the Grand International Station of the Year Award. At the time, Tucson was considered a small market, with just four TV stations and 12 radio stations, making the win all the more remarkable. “That was like winning best picture at the Academy Awards,” Arnold said. “The team was so spirited and so bonded. No ego. No in-fighting. It was just a magical time where everything and everyone came together. They called us the KCUB Bunch. It was a different time.” Seeking to advance his career and earn a better living, Arnold moved into station operations and spent seven years running radio stations in Texas. “I liked the idea of trying management – and it’s worked out pretty well,” he said. By 1985, he had moved to the television side of broadcasting, taking a position at a station in Lubbock, Texas. “I had done some fill-in work at KVOA and thought it a great way to learn about each area of the station.” In 1991, Arnold took his first GM position at the Fox affiliate in Madison, Wis. From there, he did a short stint in Rockford, Ill., and then it was back to Texas for a job in Amarillo. In 2000, he returned to Tucson to take the reins as VP and GM of KOLD. He was there for 10 years, and, during his tenure, KOLD went from the No. 3 spot in local news, market revenue and community image to No. 1. “When I was starting out, I was a part-time DJ on KOLD AM, and later,
I was KOLD TV’s general manager. So, I’ve come full circle,” he said. The GM opening at Journal Broadcast in Tucson was a happy coincidence. “This is something I wanted to do. I like living here. I have a lot of dear friends that live here,” he said. Arnold acknowledged that the broadcasting business has changed dramatically since he started. And there is still much to be learned. “It’s a little intimidating and it changes so rapidly.” With so much information readily available from so many sources, Arnold says that TV and radio stations have to differentiate themselves. “The big trick is being local. There are so many outlets for national news, we’ve got to be hyper-local with what’s going on,” he said. “With all the choices people have, you have to be on top of things locally to attract them.” He believes that the companies that will succeed are those that are deeply involved in their communities – from charitable giving and philanthropy, to active community engagement. “The way people gather information is different,” he said. “It used to be ‘We can’t put it on our website because it hasn’t been on TV yet.’ That way of thinking is gone. With mobile app alerts, people can now go two places – on the air or online.” Arnold believes there is a potential downside to the proliferation of all this up-to-the-minute technology. “The networks, Hulu, everyone is making things available online. There is so much content being produced – and people are used to not paying for it. Something has to give at some point in time,” he said. “There has to be a way to pay producers of content – or they will go away.” So what’s next for Arnold? “Retirement,” he said, laughing. “I care very deeply for what I do and the future of the company – but I know this will be my last job.” Biz Winter 2014 > > > BizTucson 229
BizENTREPRENEUR
Key to Success
Empower Employees By Mary Minor Davis The number one reason businesses fail? They run out of cash. The number one reason employees leave their jobs? Their boss. These were two of the key takeaways shared at the second annual Energize Your Enterprise, an entrepreneurial forum presented this fall by BeachFleischman and The University of Arizona’s Eller Executive Education. The event aims to bolster regional job growth by providing a forum for entrepreneurs and growth-minded business leaders to share their challenges and find solutions to operate and grow their businesses successfully. This year’s event featured three diverse business leaders focusing on topics ranging from capital risk to finding the right talent – Kerstin Block, president and co-founder of Buffalo Exchange, Harry George of Solstice Capital and Robert Sarver of the Phoenix Suns and Western Alliance Bancorporation. They shared personal stories behind their successful enterprises and provided insight into the common challenges entrepreneurs and successful CEOs face. The event was moderated by Stephen W. Gilliland, Eller’s associate dean for executive education. George shared insight from the investors’ point of view on why businesses
fail, citing the No. 1 reason – “it runs out of cash.” He said cash flow and preparing for response to change are critical to understanding business opportunities and cycles. Buffalo Exchange grew from an idea Block and her late husband had in the 1970s. Buffalo Exchange – with nearly 50 stores from California to New York, Washington State to New Orleans – changed the perception of resale. She told how she took that idea to a multi-state level. Key components include passion for what you do, persever-
“
If you have employees who really love your company and love what they’re doing, then you’re going to have a real successful business. –
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Robert Sarver, Chairman & CEO Western Alliance Bancorporation
ance to learn from your mistakes, knowing your customers and the need to have a connection with employees – which in the end, is the most important element for her company. Employees are at the center of Buffalo Exchange’s success. “The main thing we do is work with our employees and keep them engaged in our business. This is a must if you want to grow your business.” At Buffalo Exchange, every employee knows how the company is doing financially. They are taught to read financial statements and understand profit margins. She also promotes “employee empowerment” – which consists of focusing on company culture all the time. “In order to grow you have to keep it alive and vibrant.” Block offered this advice to become a successful entrepreneur: “Go into a business that you love, that you can be passionate about and that fits a need in today’s society.” Sarver agreed employees are the key to any company’s success. “If there’s one takeaway for the day’s event it’s this – if you have employees who really love your company and love what they’re doing, then you’re going to have a real successful business.”
Biz
ENERGIZE YOUR ENTERPRISE WORKSHOPS UA ELLER COLLEGE OF MANAGEMENT 1130 E. Helen Street, Room 208 Sponsored by BeachFleischman & UA Eller College Executive Education Social Media Marketing Friday, January 17, 8 a.m. to noon Presented by Hope Jensen Schau Associate Dean, Eller MBA Programs Gary Munsinger Chair in Entrepreneurship & Innovation
IT Security Friday, March 2, 8 a.m. to noon Presented by Lance Hoopes Director of Information Security & Technology UA Eller College of Management
Doing Business in Mexico Friday, May 16, 8 a.m. to noon Presented by David E. Lopez-Monroy CPA, Shareholder and International Tax Practice Leader, BeachFleischman
$399
$399
$249
230 BizTucson
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Register at executive.eller.arizona.edu/energize
www.BizTucson.com
Winter 2014 > > > BizTucson 231
Lee Lambert
Chancellor Pima Community College
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Community colleges are becoming the nation’s No.1 workforce trainer. We must create a place where the learning environment matches the earning environment.
PHOTO: CARTER ALLEN
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BizEDUCATION
Pima Community College
Talent Pipeline By Gabrielle Fimbres Lee Lambert grew up on three continents – an experience he says left him adaptable, comfortable with uncertainty and able to get along with just about anyone. Those qualities are likely to help Lambert – who became chancellor of Pima Community College in July – face the challenges ahead and lead the institution into the future. Since arriving from Washington state’s Shoreline Community College, where he served as president, Lambert has been on the move. He’s been spending time at Pima’s campuses, getting to know programs, faculty and students. He’s exploring the community, diving into local business and philanthropic groups that include Tucson Regional Economic Opportunities, Tucson Metro Chamber, Rotary Club and others. While Pima faces significant challenges, Lambert says the college is well positioned to help build a stronger economy in Southern Arizona – by preparing some students to go on to enter the work force as nurses, aircraft mechanics and other fields, to receive a bachelor’s degree or train for careers in science, technology, engineering and math, known as STEM. “Community colleges are becoming the nation’s No. 1 workforce trainer,” Lambert said. “We must create a place where the learning environment matches the earning environment – so that when students leave us and they go to Raytheon Missile Systems or Jim Click Automotive Group or another employer, they are ready to work.” Shoring up this talent pipeline is one of Lambert’s top goals, along with getting Pima off of probation and rebuilding trust with students, faculty and the community. www.BizTucson.com
In April 2013, PCC’s accrediting agency, the Higher Learning Commission, placed Pima on probation, primarily because of deficiencies in administration and governance. Among the allegations were complaints of board mishandling of sexual harassment accusations against the former chancellor. The college is making needed improvements and addressing shortcomings, Lambert said. “We have got to rebuild trust and confidence in one another so Pima can reposition itself to take its rightful place in the community,” Lambert said. For 45 years, Pima has offered opportunity and so much more to the region. “We may be someone’s first chance, we may be someone’s last chance, but we always have to be someone’s hope,” Lambert said. “That is what makes community colleges great. We are a place of hope. We are where democracy comes alive, and democracy is intertwined with opportunity, and that is what Pima Community College does – it provides access to the opportunity that allows us to participate in this great nation of ours.” Lambert, the son of a North Carolina soldier and a South Korean mother, was born in Seoul. As a military family, the Lamberts lived in Europe and Asia before settling in the state of Washington. Lambert went to college before joining the Army, where he served as a legal clerk. That experience inspired him to get a law degree. After becoming an attorney, Lambert decided he could help people most in higher education. “By the time things come to you in the legal system, they have already gotten bad. I thought I could make more of a positive difference in higher education.”
He served as special assistant to the president for civil rights and legal affairs at The Evergreen State College in Olympia, Wash., and VP for human resources and legal affairs at Centralia College in Centralia, Wash., before becoming Shoreline’s president. His background in law and human resources drew him to Pima’s challenges. He sees his experience in nontraditional education and his work in building partnerships with business and industry as a good fit for Pima. “I knew I could play a part in rebuilding the institution, to position Pima to be the leader in higher education in the state of Arizona and the nation – and a global leader,” Lambert said. He said business partnerships “are critical, and will become even more critical as the landscape of work continues to be redefined by technology and by globalization. We are competing against the rest of the world.” He said Pima must align itself with the needs of the community to develop a skilled workforce. Pima must invest in the latest in technology in the classroom so that students are ready to hit the ground running upon graduation, either by going on to receive a bachelor’s degree or by entering the workforce. “Aviation, automotive, energy sectors – those are STEM jobs,” Lambert said. “We train individuals to succeed in these jobs. We are part of the talent pipeline solution.” Pima helps lift people out of poverty through education, Lambert said. “Poverty is not one’s destiny – if leadership is committed to building a thriving and successful community. And Pima Community College is a committed partner in that.”
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www.BizTucson.com
BizBRIEFS
Todd Rockoff
JCC Grows Sports & Wellness Facility
The Tucson Jewish Community Center is expanding its sports and wellness facility as part of the nonprofit organization’s Growing with Southern Arizona capital campaign. CEO Todd Rockoff said the JCC has hired SBBL Architecture + Planning to design the facility. W.E. O’Neil Construction will serve as contractor. Construction will begin in the first quarter of 2014. In addition to creating a large new space for gym equipment and classes, the expansion will allow for an increase in programming options and healthy living activities, said Rockoff, who took the reins as CEO in July 2013. Before coming to Tucson, Rockoff was CEO at the Shaw JCC of Akron, Ohio. The 100,000-square-foot Tucson JCC, 3880 E. River Road, was built in 1989. Open to all residents, it currently serves more than 150,000 people annually. “After 24 years of vigorous use by our members and the general public, we have reached maximum capacity for people and programs,” Rockoff has said. The $3.9 million capital campaign, which has reached more than 90 percent of its goal, will allow the JCC to meet the needs of more families by providing high-quality early childhood education, after-school and summer camp programs, assistance and programs for children and adults with special needs, health and wellness activities and arts and cultural opportunities.
Biz
www.BizTucson.com
Winter 2014 > > > BizTucson 235
John P. Lewis
Commerce Bank Remains Local
Commerce Bank of Arizona has terminated an agreement to merge with First Scottsdale Bank because of banking regulatory delays. John S. Lewis will remain as Commerce Bank’s CEO. Tucson native and longtime banker John P. Lewis (no relation to John S. Lewis) has been named president of Southern Arizona operations. While banking regulatory authorities did not disapprove of the merger, Commerce Bank’s board decided that further delay was likely to be detrimental to the interests of shareholders. The bank will pursue other options to preserve its value for shareholders, John P. Lewis said. Michael Trueba has been named chief credit officer of Commerce Bank. He and John P. Lewis were responsible for the launch of Southern Arizona Community Bank in 1998, which merged with the Bank of Tucson in December 2010. With support from the Tucson community, Commerce Bank will continue to be Tucson’s largest locally owned community bank, with all decisions made in Tucson, according to John P. Lewis. He said the bank has made progress resolving issues within its loan portfolio, and that a new strategic plan has been formulated, seeking capital within the Tucson community.
Biz
Lindsay Welch Leads Junior Achievement Lindsay Welch has been appointed district director of Junior Achievement – Southern District, encompassing Tucson, Vail, Marana and surrounding areas. Welch is a Texas native and recent Tucson transplant. She received a bachelor’s degree in business marketing, with a minor in education from the University of Phoenix. She comes to Junior Achievement with five years of nonprofit experience in school administration. Her position with Junior Achievement marries her dual areas of expertise – business community relations and development with a pascontinued on page 237 >>> 236 BizTucson
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BizBRIEFS continued from page 236 sion for education. Governed by a local board of directors comprised of business and community leaders, the Southern District serves more than 19,000 students in 850 classrooms in Tucson, Oro Valley, Marana and Vail. Junior Achievement of Arizona has educated K-12 students about entrepreneurship, work readiness and financial literacy since 1957. The goal of the organization is to help prepare young people for the real world by showing them how to generate wealth and effectively manage it, how to create jobs to make their communities more robust, and how to apply entrepreneurial thinking to the workplace, according to the organization. Under Welch’s leadership, Junior Achievement is poised to strengthen ties to the business community and increase its reach among Tucson’s youth by bringing new programs to Southern Arizona, according to the organization. Biz
Mike Kass Promoted at The RitzCarlton, Dove Mountain Mike Kass has been named hotel manager at The RitzCarlton, Dove Mountain, expanding upon his current role as leader of the resort’s sales and marketing division. Since Kass joined The Ritz-Carlton, Dove Mountain team as director of sales and marketing in 2011, he has introduced key initiatives for the property, which was recently named one of the Top 100 Resorts in the World by Travel Leisure Magazine. Kass has repositioned property marketing, promoted the acclaimed launch of the Dove Mountain Rangers Program, increased leisure and group sales, expanded the destination weddings program and helped to grow top-line revenues for the property’s rooms, catering, food and beverage and spa divisions. “Mike Kass has done a phenomenal job with our marketing initiatives for the resort, and in leading a strong and highly successful team of ladies and gentlemen in our sales department,” said GM Liam Doyle. “Even in his newly-expanded role, Mike will continue to oversee our sales and marketing team and to lead our many marketing initiatives,” Doyle added. As hotel manager, Kass will direct all resort operations. “There is not a more memorable destination in Arizona, and I look forward to seeing The Ritz-Carlton, Dove Mountain continue to raise the bar as the Southwest’s premier luxury travel experience,” Kass said. Biz www.BizTucson.com
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PHOTO: KRIS HANNING
BizMILESTONE
From left – Diana Miner, Amy Walker, Meredith Lipscomb, Kelly Herrington, Melinda McNeilus, Shelby MacDonald, Cindy Regens and Amber Dzik.
Junior League
80 Years of Women’s Leadership in Tucson By Tara Kirkpatrick
“We were just a group of girls anxious to do something helpful in the city in which we lived.” Since these simple, elegant words were spoken by Eleanor Roosevelt more than a century ago, the Junior League has become a vibrant force in women’s leadership across the country. The Junior League of Tucson celebrates a milestone this year – its 80th anniversary in shaping the city into what it is today. “Our goal is to train women to be effective civic and community leaders, and our members learn board governance, volunteer management, fund development and other skills that make them effective leaders,” said Shelby 238 BizTucson
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MacDonald, JLT’s current president. This anniversary has inspired one JLT member to write a book chronicling the league’s history, from its beginnings in post-Depression Tucson to today. “It just seemed to me, as times have changed and the community has changed, many people may not know what a rich history the organization has,” said Emily Morrison, author of “Grand Dames & Great Causes: The Way we Were … A History of the Junior League of Tucson, 1933-2013.” “For my mother, me and my daugh-
ter, it has brought lifelong friends and memories, and great training,” said Morrison, who added that success in her career is a direct result of league training, involvement and connections. Morrison, chosen as one of the league’s 80 outstanding women in 80 years, spent much of last year with a team that included Carrie Durham and Angela DiFuccia, researching every issue of the league’s newsletters, “El Sarape” and “Las Noticias,” and historical records to compile the book, which was presented to members at a reception held last fall. www.BizTucson.com
It all began in 1929, when Grace Bakewell called her friend Clara Hughes and asked her to help form a Junior League in Tucson. They formed a small group of charter members known as the Service Club of Tucson. The women were required to start a community project before their application for membership in the national Junior League was accepted. They began a day nursery, then a lending library – funded by style shows, dances and a rummage sale. When the Service Club of Tucson was accepted into the national league membership in February 1933, there were about 50 members. Today, there are 130 active and 350 sustaining members, MacDonald said. “As has been the case in the nearly 300 communities where you will find a Junior League, Tucson league members are trained and dependable workers,” Morrison said. “We have saved historic buildings, filled a need, trained others and advocated for causes and legislative bills that affected all members of society.” Indeed, the Junior League of Tucson’s all-encompassing work over eight decades has included setting up day care nurseries and nurse programs in the 1930s to working with the Fort Lowell Museum and the Red Cross in the 1960s to its current project, JLT C.A.R.E.S., to promote healthy aging. Its list of projects over the years is vast, with virtually no charitable area left untouched within the Tucson community. Its meeting spots have comprised some of the city’s most historic landmarks, including the original El Conquistador and Santa Rita hotels. The JLT joined with St. Luke’s in the Desert Board of Visitors in the late 1970s to open a boarding home for elderly low-income women that still operates today as St. Luke’s Home. Just a few years later, it helped launch the Ronald McDonald House in Tucson. “The league provided the seed money to support the salary of the house manager for four years and operational money to sustain the house,” recalled Diana Sheldon, executive director for Ronald McDonald House Charities of Southern Arizona. continued on page 240 >>> www.BizTucson.com
A look back at Junior League Tucson 1929
20 women create the Service Club of Tucson.
1933
The Association of Junior Leagues of America officially admits the Service Club of Tucson. The group becomes the Junior League of Tucson with 47 charter members.
1934
New headquarters are established in the Santa Rita Hotel.
1939
Members give the American Red Cross $300 to finance the first Visiting Nurse Service, supporting trained bedside caregivers.
1941
The attack on Pearl Harbor changes the nation on Dec. 7. JLT establishes welcoming committees at the air base.
1950
The first Junior League Follies performance is held, with Ted DeGrazia creating the program cover.
1952
Headquarters move to donated space at the El Conquistador Hotel.
1960
JLT provides $10,000 for the restoration of old buildings at Fort Lowell. League members, dressed in period garb, offer tours of the fort.
1973
The league commits the funding to customize an Arizona Desert Museum van and helps restore the Cordova House at the Tucson Museum of Art.
1978
JLT partners with St. Luke’s in the Desert Board of Visitors to start a boarding home facility, St. Luke’s Home, for elderly low-income women.
1980
The league moves into current headquarters on River Road.
1981
Ronald McDonald House opens in Tucson, with help from JLT.
1983
JLT celebrates its 50th anniversary.
1987
JLT files articles of incorporation with the state of Arizona.
1993
A Done in a Day committee is created, dispatching members throughout Tucson to help with charitable projects that could be completed in one day.
1994
The league releases its first of two cookbooks, “Purple Sage.”
1999
The JLT gives $14,100 to launch the Kids with Character program, in collaboration with Big Brothers Big Sisters of Tucson, and $5,900 to The University of Arizona Medical Center Pediatric Oncology/Bone Marrow Transplant Fund.
2000
The league’s second cookbook, “Wild Thyme and Other Temptations,” is released.
2003
JLT commits $25,000 and volunteers to support the Community/School Partnership After-School Program with the United Way of Tucson and Southern Arizona.
2008
JLT C.A.R.E.S. is created to help senior citizens lead healthy lives. The league gives $25,000 to Pima Council on Aging to purchase a van for Meals on Wheels.
2013
JLT celebrates eight decades. Winter 2014 > > > BizTucson 239
BizMILESTONE
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We have saved historic buildings, filled a need, trained others and advocated for causes and legislative bills that affected all members of society.
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– Emily Morrison, Author & Junior League of Tucson Sustaining Member
continued from page 239 “As I walk through our doors each day, I am reminded that our story could not have begun without the league’s vision, leadership and support,” she said. Among its lesser known contributions, the league opened the city’s first Well Baby Clinics in the 1930s to combat infant mortality. It helped restore La Cordova House at the Tucson Museum of Art, and members pitched in to refurbish the Temple of Music and Art. The Follies, a theatrical show starring league members that first started in 1950, raised thousands of dollars for the community. The annual rummage sale – almost as old as the league itself – still raises as much as $30,000 to help fund its charities each year. For Ann McKenna, JLT’s president in 1971, it remains her favorite league memory. “We worked so hard and we made so much money,” she said. Through the years, the league has wrestled with its image and purpose, as Morrison found while researching. Many newsletters included pleas that its members not lose passion for the league’s mission as it morphed from a social “hats and gloves” society to the group of modern professionals that holds the reins today. “In the early years, no one was employed,” Morrison said. “Today, most everyone works full- or part-time, and these women still make time for meetings, training and community service. There is much to be admired. They have to be very organized and responsible.” 240 BizTucson
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Celebrating 80 Years “Here’s to 80 years of the best of women and the best of volunteering,” toasted JLT’s 2003 president Jennifer Casteix at the reception last fall. The gathering, co-chaired by Casteix and JLT’s 2010 president Mindy Griffith, capped off a celebratory year that began in March, when 80 outstanding sustainers were recognized for their work and dedication. Among them were names synonymous with the history of Tucson – Drachman, Dusenberry, Sundt, Levy and Murphy. “Without the Junior League of Tucson, many of our most successful and influential community volunteers may have missed the opportunity to discover their passion for service,” remarked Jennifer Harris, JLT’s 2006 president. “Sustaining members of the JLT are sprinkled throughout Tucson nonprofits, bringing with them volunteer training that makes those organizations stronger.” At the reception, sustainers reminisced about league training that helped them re-enter the workforce after their children were grown. “When I went to get my first job after staying home, my whole resume was JLT,” recalled Dee Ann Sakrison, JLT’s 1979 president. Agreed Linda Breck, JLT’s 1980 president, “If you had done work in the Junior League, it was accepted.” Perhaps the league’s importance to Tucson may best be measured by imagining if it never existed – if Bakewell and Hughes never came together all those years ago. “If there was no JLT, there might be no community advocacy, no community outreach, no women on nonprofit boards…no poised way for stay-athome women to learn, train and give back, no way for working women to be connected to stay-at-home women, no forum to discuss ideas, pound out conflict and create resolution,” said Tiana Ronstadt, JLT’s 2001 president. “If there was no JLT, women would not be where they are today – a vibrant, powerful, contributing part of our economy and our nation.”
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BizTECHNOLOGY Tech Tips Kevin Kaplan, VP of marketing and technology for Long Companies, offers five tips for making your business mobile friendly: 1. Ready or not, mobile is here – the proliferation of smartphones and tablets means that mobile devices are quickly becoming the primary way consumers access information and the Internet. Like it or not, to reach today’s consumer you need to have a strong mobile presence.
App Savvy Long Realty Goes Mobile By Pamela Doherty These days, there’s an “app for that” everywhere. Applications – or software that runs on mobile devices – bring abundant and unlimited activities to our fingertips. We can play Monopoly, avoid parking tickets, keep track of calorie intake, check the performance schedule at Carnegie Hall and scan the latest snow reports from ski resorts around the world. As for your customers, the ways they seek out information continue to change. To avoid obsolescence, businesses must adapt to this behavior and to the innovative technology consumers increasingly rely upon. Long Realty Company is one local business that is determined to keep pace. “We are making sure that we are meeting the wants, needs and desires 242 BizTucson
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of consumers who are totally tethered to their laptop, phone and iPad,” said Rosey Koberlein, CEO of Long Companies, the parent of Long Realty. According to Kevin Kaplan, VP of marketing and technology for Long Companies, 35 percent of property searches on the Long Realty website are now done on smartphones, a figure that has doubled in each of the last three years, and will undoubtedly continue to rise. As a result, a big part of Long Realty’s overall marketing strategy is to ensure that it has a strong presence in the mobile space, anchored by its mobileoptimized website. This past summer Long launched an app of its own. The GPS program allows users to locate properties that are for sale, under contract, pending and continued on page 143 >>>
2. Analyze your current website – odds are that you have consumers trying to visit your current website on a mobile device. To find out, use the free Google Analytics tool to measure your website traffic. Google Analytics can tell you what percentage of your website traffic is mobile. 3. Make your website mobile friendly – now that you know you have mobile website traffic, are you ready for it? Put on your consumer hat and visit your website from your smartphone. Does it just pull up your full, desktop website? That’s likely a big turn off and frustrating experience to mobile consumers. Make sure you have a mobile optimized website or a “responsive design,” which allows your website to adapt its layout to the size of the screen it is being viewed on. 4. Find a good developer – good mobile website and app development can take a different skill set than traditional website development. The person who built your existing website years ago does not necessarily have what it takes to create a compelling mobile experience. Make sure you do your research and ask good questions. 5. Mobile should be an integrated marketing strategy – don’t treat your platforms like islands. Instead, the experience your clients have in your app, your mobile website and your full website should be a seamless. For instance, one login should be used across all systems. Your mobile platforms are an extension of your website and need to integrate with all of your other internal systems. www.BizTucson.com
continued from page 242 recently sold using an Apple or Android phone or iPad. Those looking for a home can find current listings by entering a street name or by circling areas of interest on the screen. When driving around, they can scan neighborhoods and access listing details using a live camera view from their device. “We looked at our competition on the web and felt that we were in a unique position to develop this app and take control,” Kaplan said. According to Kaplan, search sites such as Zillow and Trulia upload information that is limited in scope and often out of date. In contrast Long’s information comes from the Multiple Listing Service and is updated every 15 minutes. The database includes about 66,000 properties throughout Arizona. “We want to help people make good decisions. People in the market who want to buy need to have timely, accurate data that is readily available,” Kaplan said. Kaplan’s in-house team of 10 includes marketing and IT professionals who are charged with providing platforms, systems and content for agents. Long’s app developer – a contracted vendor that specializes in real estate – took more than half a year to research and create the customized tool. He points out that while the app has run smoothly, there is always a need for continuous refinement and continual updates to work out any bugs, incorporate user preferences and keep abreast of operating systems. Long realtor Pasty Sable said, “One of the main reasons I joined Long is because their technology is far superior to anything else I’ve seen.” In addition to the app, Sable points to the ability clients have to text an address to Long and receive current listing information and photos in a matter of seconds. Sable’s clients range in age from the mid-20s to the 80s, and “most have proven to be technologically savvy,” she said. “The industry and the consumer will always be on the hunt for something better and we need to be open to what’s coming down the pike,” added Kaplan. “While we are really good, we are never done. There’s always a lot to think about.” Biz www.BizTucson.com
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BizAWARDS
16th Annual Copper Cactus Awards By Sheryl Kornman Tucson Metro Chamber hosted the 16th annual Copper Cactus Awards, honoring 12 businesses and selecting Sue Reynolds of Shear Expressions as small business leader of the year. Wells Fargo created the competition in 1998 and turned over the lead role to the Tucson Metro Chamber in 2012. Key sponsors of the awards are Wells Fargo, Casino del Sol Resort & Conference Center and Intuit. The awards spotlight and celebrate local businesses for their community service, innovative business practices, business growth and for being among the best places to work. Judges this year were Michael Burdett of Wells Fargo, Jeff Christensen of HealthSouth Rehabilitation, Mark
Dean of Intuit, Sharon Foltz of UniSource Energy Services and Tucson Electric Power, Tad Jewell of Lovitt & Touché, Dick Luebke of Pima Medical Institute, Dave Iaconis of BeachFleischman, Richard Underwood of AAA Landscape and Cyndy Valdez of Golden Eagle Distributors. Four hundred small businesses were nominated and the winners were chosen from 46 finalists. Reynolds, who won small business leader of the year, enjoys mentoring her team and encouraging continuing education. “Treating my Sue Reynolds
staff and customers with fairness, respect and courtesy is a trademark of my success. Making people feel valued and appreciated creates trust and loyalty,” Reynolds said. Chamber President and CEO Michael V. Varney said the chamber celebrates small businesses, which “provide important goods and services, provide diverse employment opportunities and give back to the community in many ways.” Recipients were celebrated at a Best Practice Showcase at Casino del Sol, where they demonstrated their best practices and techniques to help others propel their companies forward.
Jennifer Allen and Tonya Bunner
1 to 30 employees BodyCentral Physical Therapy Sports & Wellness Center BodyCentral opened in 2001 with a dynamic vision – to be the provider of choice for people experiencing musculoskeletal injuries and pain. “We’re here for the patients and we’re here for each other. By helping people, we are all uplifted,” said founders Tonya Bunner and Jennifer Allen. Staff includes doctors of physical therapy and therapists with board certifications in orthopaedics, sports and women’s health. Its mission is to provide quality, evidence-based treatment with an exceptional patient experience. The company supports the community by its involvement in local organizations and has special programs and lectures on health and wellness, fitfor-surgery programs, pregnancy wellness and osteoporosis prevention. www.BizTucson.com
Amanda Forler and Jean Dill
31 to 75 employees Maximum Impact Physical Therapy Maximum Impact was started in 2005 by Darren and Eliza Bayliss with a “people first” philosophy aimed at transforming lives at work and in the community by becoming the premier provider of physical therapy services. The company has a commitment to corporate social responsibility and the owners say they “are in the business of caring for people.” They just happen to be physical therapists.
Brian Welch
BLUE CROSS BLUE SHIELD OF ARIZONA BEST PLACE TO WORK
PHOTOS: ALI MEGAN
Winners of the 2013 Tucson Metro Chamber Copper Cactus Awards
76 to 250 employees Cottonwood Tucson The inpatient holistic behavioral health treatment center is located on a 34-acre campus near the base of the Tucson Mountains. Staff is dedicated to providing innovative and evidencebased treatment in an environment characterized by safety and respect for patients, family members and staff. “The most gratifying piece of receiving this recognition is that our employees felt compelled to nominate Cottonwood as a Best Place to Work,” said CEO Brian Welch. “Creating a healthy work environment where people feel supported has always been and will continue to be a cornerstone of our organization’s makeup.” Welch said his father, the company’s founder, created a workplace environment “in which people grow and stay.” Winter 2014 > > > BizTucson 245
Trish and Mic Williams
Jon Davison
1 to 30 employees Micro Import Service The family-owned independent auto repair facility was founded in 1976 and specializes in repairing Japanese vehicles. Technicians, apprentices and service advisers receive ongoing training to provide the best possible solution to a vehicle’s problem. The company has expanded to service other types of vehicles “to be able to provide service for the entire family.” Owners Mic and Trish Williams have second- and third-generation customers.
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31 to 75 employees ProActive Physical Therapy The physical therapist-owned practice has provided care for nearly 20 years. Many of the company’s professionals have advanced degrees and special certification. Owner John Woolf, physical therapist with a master’s degree in exercise and sports science, was the director of sports medicine and head athletic trainer for the University of Arizona from 1992 to 2001. He is co-director of the International Academy of Orthopedic Medicine – U.S. “Growth in healthcare requires a keen awareness of the rapidly changing environment,” Woolf said. “We have an extraordinary team. The Copper Cactus Award is a wonderful acknowledgement to an extraordinary group of people.”
PHOTOS: ALI MEGAN
COX BUSINESS GROWTH
BizAWARDS
Winners of the 2013 Tucson Metro Chamber Copper Cactus Awards
Jeff Murtaugh
76 to 250 employees Realty Executives Tucson Elite The company’s experts buy and sell commercial and residential real estate. They work in specialties in every niche of the market. The agents and owners pride themselves on their service-minded philosophy, which holds customers and employees in high esteem. The dual focus creates a difference that comes from within each agent. “We started a real estate company during the worst real estate market since the Great Depression, with a new idea on how to run a real estate company in this post real estate depression era,” President Jeff Murtaugh said. “The Copper Cactus award validated that our idea has worked, and worked well.”
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Rob Stenson and team
1 to 30 employees Goodmans Interior Structures Goodmans designs work spaces that improve productivity, creating value for stockholders, taxpayers, students and patients by decreasing expenses for corporations, government agencies, schools and hospitals. Goodmans is a community leader that takes care of its sick, supports its weak, inspires its artists and protects its resources with integrity and respect. “At Goodmans, we will change our community,” said GM Rob Stenson. “That is not just a vision statement posted on the walls of our office. Our people are passionate about it. They want to make a difference here in Tucson. To have the team honored with this award is so rewarding to me.”
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Bruce Dusenberry
31 to 75 employees Horizon Moving Systems, now Suddath Relocation Systems Horizon was founded in 1924 and is now doing business as Suddath Relocation Systems. It remains a United Van Lines agent. Bruce Dusenberry, grandson of the founders, was CEO of Horizon for 20 years and is now business development consultant to the new owners. Horizon was founded by C.R. Dusenberry with one truck. Its employees serve in leadership roles in nonprofit organizations and participate in fundraisers. “Giving back to the community is one of the four pillars of Horizon’s mission statement,” Bruce Dusenberry said. “The Copper Cactus award affirms the commitment of our employees to making Tucson a better place.”
Robert Assenmacher
EL RIO COMMUNITY HEALTH CENTER COMMUNITY SERVICE
PHOTOS: ALI MEGAN
Winners of the 2013 Tucson Metro Chamber Copper Cactus Awards
76 to 250 employees CAID Industries CAID is the largest diversified metal fabrication company in the Southwest. The 65-year-old company’s work includes design/build custom fabrication, large-scale manufacturing, precision machining and mining technology. The company now has an automation division. It strives to be a responsible corporate citizen and maintains a high level of ethnics and integrity with employees, in business activities and in the community. Accepting the award for CAID Industries was VP Robert Assenmacher.
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Dr. John Yu
1 to 30 employees SmileMore Dental The practice is among one percent in the nation that use two unique technologies – one that creates crowns and delivers them the same day, eliminating the goopy impression process, and the other an imaging system that captures a 3-D radiograph of the jaw that allows for accurate measurement. SmileMore owner and dentist John Yu said he is proud to be at the forefront of contemporary dental practice. The new technology provides precise restorations in one office visit and the imaging system measures the height and thickness of the jaw to help the dentist properly place dental implants.
James Millerd
31 to 75 employees 4D Technology 4D designs and manufactures laser interferometers, surface roughness profilers and interferometry accessories for accurate measurement of optics, optical systems and precision-machined surfaces. The products can be deployed in production environments even in the presence of severe vibration and turbulence. 4D instruments are used in aerospace, astronomy, optical testing and other industries, including in space-based projects. Receiving the award was 4D President James Millerd.
PHOTOS: ALI MEGAN
NEXTRIO INNOVATION THROUGH TECHNOLOGY
BizAWARDS
Winners of the 2013 Tucson Metro Chamber Copper Cactus Awards
Howard N. Stewart
76 to 250 employees AGM Container Controls AGM provides environmental control hardware to protect missiles and other moisture-sensitive equipment in defense, aerospace, electronics, optical, industrial, automotive and commercial markets to protect and extend the life of critical equipment. The company is employee owned and in 2009 was recognized by the U.S. Chamber of Commerce as America’s Best Small Business. AGM has been a gold-level supporter of United Way for 14 years. “Winning this award was a big surprise for us, but a very pleasant one,” said Howard N. Stewart, president and CEO.
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BizGOVERNMENT
Arizona Gov. Jan Brewer
Tucson Mayor Jonathan Rothschild
Tucson Metro Chamber Presents
State of Government 2014 Times they are a changing – globally, nationally and especially locally. So what do our government leaders see as key issues and priorities for the year ahead? Listen up and get focused on what our Arizona Gov. Jan Brewer and Tucson Mayor Jonathan Rothschild see as important to strengthen and grow our economy and address other critical challenges in 2014 and beyond. Plan to attend the upcoming State of the State and the State of the City luncheons hosted by Tucson Metro Chamber.
The State of the State address is on Jan. 14 at the Hilton Tucson El Conquistador Golf & Tennis Resort. The State of the City address is on Feb. 26 at the Tucson Convention Center. Brewer, a longtime Arizonan, became governor in 2009. She’s spent the past three decades in public service. Brewer was elected to the Arizona House of Representatives, then the Arizona Senate where she served from 1987 to 1996. She went on to be Maricopa County supervisor until 2002 when she became secretary of state.
STATE OF THE STATE
Arizona Gov. Jan Brewer reviews the important issues affecting not only Southern Arizona, but the entire state, and highlights priorities for the coming year. Tuesday, January 14 Hilton Tucson El Conquistador Golf & Tennis Resort 10000 N. Oracle Road Registration 11:30 a.m. Luncheon & address 12:00 Noon $65 Tucson Metro Chamber Investors $85 Non-Investors
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STATE OF THE CITY
Tucson Mayor Rothschild outlines his goals, planned policies and priorities for the City of Tucson in the pivotal year ahead. Wednesday, February 26 Tucson Convention Center 260 S. Church Ave. Registration 11:30 a.m. Luncheon & address: 12:00 Noon $65 Tucson Metro Chamber Investors $85 Non-Investors
Contact Jason Cook (520) 792-2250, Ext. 158 or jcook@tucsonchamber.org
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Rothschild, a Tucson native, has served as mayor since 2011. He was managing partner at the law firm Mesch, Clark & Rothschild from 2001 to 2011, concentrating in the areas of business law and estate planning. Before that he served as a law clerk for a U.S. District Court Judge. He’s volunteered on numerous community boards. The major is expected to focus on his 5 Ts for the future of Tucson – technology, trade, transportation, tourism and teaching.
More information at www.tucsonchamber.org
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