Spring 2014 e edition corrected by BizTucson Magazine

SPRING FALL 2012 2014

THE REGION’S BUSINESS MAGAZINE

Dr. Fayez K. Ghishan (center) leads a team of world-class researchers and physicians at The University of Arizona Steele Children’s Research Center

20TH ANNIVERSARY: FATHER OF THE YEAR AWARDS

SPECIAL REPORT: COMMERCIAL REAL ESTATE, CONSTRUCTION & DEVELOPMENT www.BizTucson.com

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BizLETTER Scientists of Steele

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Volume 6 No. 1

Publisher & Owner

Steven E. Rosenberg Brent G. Mathis

Creative Director Photo: Steven Meckler

Journalist Gabrielle Fimbres says it best – “There could be no more noble cause – finding cures for childhood diseases and easing the suffering of children.” One of Fimbres’ most compelling stories to date chronicles our region’s Scientists of Steele and their global visionary leader Dr. Fayez K. Ghishan, director of The University of Arizona’s Steele Children’s Research Center. Ghishan leads nearly 100 world-class researchers, scientists and physicians – all determined to defeat mankind’s most devastating diseases and save the lives of our next generation. As Fimbres says, the Steele Center is a think tank of our brightest minds. Fimbres also shares inspirational stories about six of our finest leaders, members of “Generation Next” who have not only been successful in their careers, but also where it really counts – at home. These role-model dads have been selected by Father’s Day Council Tucson as the 2014 Fathers of the Year. We salute David Hutchens, Omar Mireles, Jim Moore, Cody Ritchie, Neal Weitman and U.S. Air Force Capt. Joshua Palochak. Proceeds from the gala, slated for June 13, will fund the Father’s Day Council Tucson Endowed Chair for Type 1 Diabetes Research at the UA Steele Center. The 20th annual Father of the Year Awards Gala is dedicated to the memory of Dave Sitton, an FDC founding board member, and to the memory of my father, Howard Rosenberg. His extraordinary vision expanded the event into a nationwide philanthropic success. Under his leadership over the past three decades, charitable proceeds for diabetes research have surpassed $50 million and the inspirational event honoring role model dads is now in 36 U.S. markets. A Los Angeles Father of the Year honoree in 2005, he will always be my hero. Sports writer Steve Rivera files a motivational report on a local leader who commands national attention as the Wildcat basketball dynasty once again makes history. Enjoy Rivera’s feature on hoops CEO Sean Miller. Fimbres also files a fascinating report on Regents Professor Carol A. Barnes and her innovative research as director of the UA’s Evelyn F. McKnight Brain Institute. Barnes, who was recently awarded the prestigious Ralph W. Gerard Prize in Neuroscience, has brought

more than $30 million in research grants to UA. As the economy shows glimmers of recovery, we report on improvements in commercial real estate, construction and development. Many industry leaders contributed to this report, complete with forecasts, an update of downtown and its $280 million infrastructure investment, new and recently renovated buildings, philanthropic projects, workforce education and more. Reporting are Mary Minor Davis, David B. Pittman, Larry Copenhaver and Rivera. This issue also highlights small business success stories, including Gadabout SalonSpas. Romi Carrell Wittman explores this all-in-the-family business with founder Pam McNair-Wingate, her daughter Jana Westerbeke and Jana’s husband Frank. The motherdaughter team avidly supports community causes, including the Boys & Girls Clubs of Tucson, which honors them with the Click for Kids Award, named for legendary supporter Jim Click. As BizTucson celebrates its 5th anniversary, a special thank you goes out to our advertisers, who invest their marketing dollars to reach top executives in the business community, and to our readers. You’ll find a collection of creative designs that have graced our covers on page 147. The creative direction and high journalistic standard begins with one terrific trio. Thank you to Creative Director Brent G. Mathis for exceptional graphic design, photography and sense of style, and to Contributing Editors Donna Kreutz and Fimbres for their “eagle eyes,” wonderful ideas and unwavering dedication to journalistic quality. Thanks to friends and colleagues, and a heartfelt thank you to my supportive family – especially my wife, Rebecca. Steven E. Rosenberg Publisher & Owner BizTucson

Contributing Editors

Contributing Copy Editors Anthony Gimino

David Petruska

Contributing Technology Director

Mike Serres

Contributing Writers

Mary Minor Davis Brent DeRaad Pamela Doherty Gabrielle Fimbres Anthony Gimino Sheryl Kornman Donna Kreutz Christy Krueger David B. Pittman Steve Rivera Monica Surfaro Spigelman Eric Swedlund Valerie Vinyard Teya Vitu Romi Carrell Wittman

Contributing Photographers Carter Allen

Kris Hanning Amy Haskell Brent G. Mathis Steven Meckler Chris Mooney Tom Spitz Balfour Walker

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BizTucson Phone: 520.299.1005 Subscription Information:

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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.

POSTMASTER:

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Gabrielle Fimbres Donna Kreutz

Please send address changes to: BizTucson, 4729 East Sunrise Drive, #505 Tucson, AZ 85718.

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BizCONTENTS

SPECIAL REPORT 2014

FEATURES

THE REGION’S BUSINESS MAGAZINE

SPRING 2014 VOLUME 6 NO. 1

COVER STORY: 74

BizRESEARCH Brightest Minds Focus on Cures for Kids

DEPARTMENTS 94 60

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BizLETTER From the Publisher

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BizTECHNOLOGY Electro-Optics

BizABATEMENT Hazard Control

BizAVIATION Securaplane Expands to Innovation Park

BizMILESTONE New Technology Ignites Jeweler’s Passion

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BizHONOR Styling Success

BizBENEFIT Rockin’ To Sock Cancer

BizHONOR UA Executive of Year Honoree Janet Napolitano

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BizSPORTS Arizona Basketball Soars Again with Sean Miller Basketball Town, USA Fans Fund McKale Facelift Wildcat Hoops Lore Galore

BizRESTORATION Restoring the Glory of Rillito

Finding Markets for New Ideas

BizLEGAL Employment Law & Order

81 82 84 86 88 90 92 94 147

BizBENEFIT 20th Annual Father of the Year Awards BizHONOR Meet Father of the Year Honorees: David G. Hutchens Omar Mireles James H. Moore, Jr. Capt. Joshua Palochak Cody Ritchie Neal Weitman BizRESEARCH UA’s Brainiac: Unlocking Secrets of Brain BizMILESTONE 5th Anniversary of BizTucson – Cover Retrospective

BizINSURANCE 148 Offering Employees Healthcare Choices BizHONOR 150 Women Making Strides BizMILITARY 152 World’s Largest Military Solar Project

BizVIEWPOINT 154 Brent DeRaad

99 BizSPECIAL REPORT Commercial Real Estate, Construction & Development 102 106 108 112 118 122

JTED’s Pathway to Success ABA Volunteer Day $280 Million for Infrastructure Eye Opening Tour of Downtown CCIM Forecast & Legend Awards New to Market Listings

133 136 138 142 144

CREW Sees Brighter Future Lewis & Clark Win Good Scout Awards MPA Common Ground Awards Sporting Chance Center Ann Kathryn Schmidt Kickin’ It Clubhouse

ABOUT THE COVER Scientists of Steele, from left – Daniel Laubitz, Jing Li, Dr. Fayez K. Ghishan, Rita-Marie T. McFadden and Vijayababu “Vijay” Marati Radhakrishnan of The University of Arizona Steele Children’s Research Center 12 BizTucson

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Created by: Brent G. Mathis Photo: Steven Meckler

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1. J. Rukin Jelks, a founding father of quarter horse racing in America 2. Courtyard entry to stables showing saddle racks 3. Portions of the original retaque corral still stand just north of the stables 4. Exterior of the stables shows the original sconce light fixtures, Mexican iron gate, mesquite lintel and finned scuppers as roof drains

PHOTOS: COURTESY RILLITO PARK FOUNDATION

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BizRESTORATION

Restoring the Glory of

o t i l l Ri By Monica Surfaro Spigelman

Quarter horse legends have thundered through the starting gates of Rillito Park Race Track since 1943. Now the expertise and enthusiasm of the Rillito Park Foundation is driving innovation through that same straightaway. It’s part of the Tucson way – this love of cow ponies and rancher sports that echo the iconic American West. Once upon a time, boisterous cowboys in big hats crowded the bleachers of this historic track, the first regulated racing quarter horse facility in the United States. In this storied track’s 71st year, the foundation unveiled a plan to honor community interests while preserving an irreplaceable part of Tucson’s western traditions in an authentic dust-onboots setting. The nonprofit foundation, formed in 2011 by local business owners, sports leaders and ranching families, has committed $100,000 to launch restoration of the original J. Rukin Jelks Stud Farm, hacienda and stables on a rise just north of the race track at 1090 E. River Road. Jefferson Rukin Jelks was a local rancher and pioneer of American quarter horse racing who founded the race track on his property, some 93 acres

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along the banks of the Rillito River, in 1943. Designed by local rancher and architect Frederic O. Knipe, the house, guest house and stables were built in 1940. The property was listed on the National Register of Historic Places in 2012 The foundation is managing restoration of the Jelks’ site through a cooperative agreement with Pima County. It also is negotiating with the county – which owns the historic home, surrounding buildings, race track and Rillito Park – to lease and operate horse racing there next year. Generating revenue would be enterprises created by public-private partnerships which balance racing, soccer and community interests. “What’s planned is a broad mix of events and athletics, while preserving the park for what the area was born to do,” said Jaye Wells, one of four founding foundation directors and an architectural designer with a passion for historic preservation. He’s a former trustee of Green Fields Country Day School. “We want to create a thriving community setting that’s also evocative of the western horse and rider – culturally, ar-

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BizRESTORATION 1

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PHOTOS: COURTESY RILLITO PARK FOUNDATION

1. Detail from mural in stables by Hughlette “Tex” Wheeler 2. Sculptor Wheeler (left) with J. Rukin Jelks 3. Illustration for Museum of the Western Horse and Rider 4. Stables 5. “George Catlin’s American Buffalo“ exhibition continued from page 25 tistically and historically.” In its natural desert clearing along the banks of the Rillito River, the park is a picturesque oasis of multi-use potential, and the foundation hopes to assist with other improvements in addition to the Jelks Stud Farm restoration, Wells said. A supporter of soccer and horse racing as major assets of the park, the foundation is advocating a balanced plan that sustains both of these activities – using public-private partnership to take the burden off of taxpayers. 26 BizTucson

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The foundation also envisions other activities, including access to the 131 shared-use miles of pathways by the river wash plus events like farmers markets and concerts. Harmony of architecture, nature

The first phase of private investment includes re-landscaping the nearly five acres of the Jelks Stud Farm with eraappropriate gardens, then opening the historic property for tours and special events such as weddings and corporate retreats – all the while eyeing the es-

tablishment of a new Museum of the Western Horse and Rider on the property. The Jelks hacienda has withstood the test of time, looking exactly as it did in the 1940s. In 1953 Jelks sold to John and Mary Shoemaker. The county acquired the stud farm in 2007 along with memorabilia left in the home and stables after Mary died. This 1,850-square-foot home has never been remodeled. With its courtyard facing the Santa Catalina Mouncontinued on page 28 >>> www.BizTucson.com

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“

What’s planned is a broad mix of events and athletics, while preserving the park for what the area was born to do.

”

– Jaye Wells, Director Rillito Park Foundation

continued from page 26 tains and mature plantings cascading down to the race track, the Old West compound is a harmony of architecture and desert nature with hand-hewn mesquite beams, saguaro-ribbed ceilings and intricate oxblood brick flooring. The stables were designed to face the courtyard across from the home so the Jelks and their horse-loving friends could share cocktail hour with the horses. The stables continue the western authenticity, with ornate ironwork, massive wood posts and stalls still marked with nameplates of champion quarter horses. There are other wonderful touches in the stables, including a tiled fireplace and nooks and crannies depicting racing folklore. A mural by famous racehorse artist Hughlette “Tex” Wheeler is still intact. Just north of the stables is an original Sonoran-style retaque fence of mesquite logs and brush. “A form of architecture as art,” Wells said. In addition to the architectural features of the property itself, artifacts and memorabilia from both the Jelks and Shoemaker families will be displayed, including bronzes, paintings, photographs and stud records of famed horses. Quarter horse racing started here

The Rillito Park Race Track is a treasure in a glittering history of western horse racing. Jelks, who ran the X-9 ranch in the Rincon Mountains, was immersed in horse breeding and in fostering a unique short-distance racing format for his favored cow ponies, the “poor man’s race horse.” He and his ranching buddies already were continued on page 29 >>> 28 BizTucson

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BizRESTORATION continued from page 28 racing at a small track called Hacienda Moltacqua. When Moltacqua was sold in 1943, Jelks volunteered his stud farm’s training track to continue racing. The art of quarter horse racing was perfected here, with Jelks and his friends modifying the traditional halfmile oval track and inventing chutes for the straightaway racing style. The track chute was listed on the National Register of Historic Places in 1986. Here’s also where the photo-finish electric timer was born, and where the American Quarter Horse Racing Association was organized. Romancing the authentic West

Even before the Museum of the Western Horse and Rider gallery is constructed, Wells and the foundation are spearheading collaborations with other museums on the new Arizona Exhibition Series – including in 2015 to present with the Smithsonian’s “George Catlin’s American Buffalo,” a traveling exhibition of original Catlin paintings from the Smithsonian American Art Museum’s collection. A Visit Tucson grant is seeding a collaborative effort with the Arizona Historical Society to launch the project. The long-range business model envisions a boutique casita-styled hotel to be built within the complex, extending from the original buildings. Revenue from the hotel operation would cover the cost of operations and maintenance of the future museum gallery. Since its founding in 2011, the foundation’s leadership has expanded to a team of 10 with representatives of soccer and horse racing, historic preservation and landscape architecture, philanthropy, hospitality, museums and and farmers markets. Wells and other foundation directors see nothing but the potential in Rillito Park – from the Jelks restoration, to maintaining horse racing, expanding sporting events and building new facilities, including the museum. The foundation is the compass for discussions that lead to showcasing the site’s rare authentic western history, promoting private-public partnerships and energizing the park with activities that engage the entire community.

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“

The U.S. Navy wanted to have the capability to detect undersea mines before they cause harm. It turns out our technology was superior to the alternatives.

John McLean

Chief Technology Officer Areté Associates

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BizTECHNOLOGY

Electro-Optics See Through Water and Dust By Eric Swedlund Established in 1993, the Tucson division of Areté Associates has quietly grown its electro-optics business to roughly $25 million in annual revenue. Focusing on advanced technology development for defense and intelligence customers – primarily the United States Navy – the Tucson-based Sensors, Sources and Systems Division of Areté has about 65 employees and accounts for a third of the company’s annual revenue. “I was the pioneer to open the office in Tucson and the reason we’re here specifically is because it’s a great place to do electro-optics research and development,” said Chief Technology Officer John McLean. The core of Areté’s Tucson operation is the production and delivery of airborne surveillance systems equipped with LIDAR technology to detect undersea mines, McLean said. Areté has developed a specialty in technology for blue-green LIDAR – a remote-sensing method used to examine the surface of the earth. LIDAR stands for Light Detection and Ranging. “It’s an optical radar. The blue-green is important because it allows us to image things in the ocean. One of the big Navy concerns now – prompted by losing some ships and losing some personnel – is the threat of sea mines,” McLean said. “They are probably the original improvised explosive device and it’s a real threat to naval activity as www.BizTucson.com

well as commercial shipping. “The U.S. Navy wanted to have the capability to detect the mines before they cause harm. We applied our technologies for the detection of these mines. It turns out our technology was superior to the alternatives and we’ve sold close to 50 LIDAR systems to the U.S. Navy at this point,” McLean said. As a subcontractor to Northrop Grumman Corporation, Areté produces the Airborne Laser Mine Detection System, which is mounted on an H-60 helicopter that flies ahead of the fleet to determine if mines lie in a ship’s path. The technology – developed and manufactured in Tucson – provides a three-dimensional map of what’s below the surface of the ocean. David Kane, VP of the company’s Sensors, Sources and Systems Division, said Areté’s mine countermeasure effort includes two additional primary programs – the Coastal Battlefield Reconnaissance and Analysis, which flies over beaches searching for surf-zone mines, and the Electro-Optic Identification AN/AQS-20A, an integrated acoustic and electro-optic sensor system for detection of sea mines that is deployed from a Littoral Combat Ship. Kane, who opened an Areté office in Boston before taking over the Tucson operation at a time of expansion in 2005, said the local division needed to integrate production with the rest of its office and moved to its current location

at North Swan and East Camp Lowell Roads in 2007. “We have a large technology portfolio and innovative research programs. We’ve grown a lot as a company,” he said. “The company has done very well. We’ve expanded our space and our revenues have grown probably two to three times since I’ve come on board.” In developing new technologies, Areté focuses on its own research and development as well as needs brought to the company’s attention by its customers. “We work a lot with our customers, looking at their problems and where we have technologies or capabilities that could address them. There’s a lot of give and take with our customers,” Kane said. One example is a new LIDAR system for what’s known as a degraded visual environment. “If you go to other wavelengths you can see through other things,” said McLean, who was Areté’s president and CEO from 2003 to 2009. “One of the technologies we’re pursing is a different type of LIDAR system to look through brown-outs for helicopter applications. “In a very arid area – like the Middle East – helicopters stir up clouds of dust and the pilots lose complete visual control of their environments. About half of the helicopter casualties in Afghanistan were caused by brown-out, continued on page 32 >>> Spring 2014 > > > BizTucson 31

BizTECHNOLOGY

CONTRAST IMAGE

RANGE IMAGE

The Electro-Optic Identification system is part of the AN/AQS-20 towed minehunting system. 1) The EOID is the gray section on the nose in the water deployment photograph. 2) The system is towed underwater to image bottom mines. 3) The system is deployed from the SH-60 helicopter. 4) The system generates high resolution contrast images (similar to a black and white photo) and range images (where height above bottom is coded into greyscale). 5) The CAD model shows the “guts” of the system.

Images Courtesy Areté Associates

continued from page 31 not enemy fire or anything like that. So we’re building technology now that basically allows the pilots to see through dust clouds,” he said. Also in the works for Areté is the world’s smallest, lightest and most compact LIDAR system – a prototype designed to mount on the underside of a small unmanned aerial vehicle. The 44-pound payload, which has flown on three different aircraft to date and is anticipated to undergo further testing this summer at Camp Pendleton, is a drastic reduction from the 220-pound LIDAR portion of the ALMDS, McLean said. “We spend about 7 percent of our revenue on our own research and development – wild ideas we want to try out. But we pay a lot of attention to what the federal government agencies are interested in, in terms of priori32 BizTucson

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ties. We look at matching some of our technologies for those applications,” he said. “That’s our business model. We’ll take some R&D, try to develop some new technologies to look at an emerg-

“

We spend about 7 percent of our revenue on our own research and development – wild ideas we want to try out. – John McLean Chief Technology Officer Areté Associates

”

ing need, show the government that we have a solution and then go after the government contracts.” There are also widespread civilian applications for Areté technologies, McLean said. For two examples, the U.S. Geological Survey is interested in measurements of the Colorado River drainage, and governments and the oil-extraction industry alike have interests in measuring ocean surface currents in real time, to predict where oil might wash ashore following a spill. Founded in Northridge, Calif. in 1976, Areté is an employee-owned company with more than 300 employees in seven locations.

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BizTECHNOLOGY

David Allen

Vice President Tech Launch Arizona The University of Arizona

Sherry Hoskinson Director Wheelhouse Arizona The University of Arizona

Downtown Tucson

Manny Teran President Azterra

PHOTO: JOHN SEARS

PHOTO: JOHN SARTIN

BIO 5 Institute Thomas W. Keating Bioresearch Building The University of Arizona

Eric Smith

Business Development Manager, Azterra & CNA Wheelhouse Arizona Embed

Finding Markets for New Ideas By Eric Swedlund A new collaboration aims to ramp up entrepreneurial activity in Tucson and rapidly push startup technology companies to the next level. The Commercialization Network Alliance is designed to connect university professors who develop potentially marketable technologies with business partners knowledgeable about the various and specific niche markets. These connections are made by utilizing a broad network of alumni and entrepreneurs. The effort began in July, when the City of Tucson and The University of Arizona’s Tech Launch Arizona put together the framework of the alliance and began seeking an independent contractor to be the city’s representative to the entrepreneurial community. “The mayor has been working for a long time with a group of community leaders to infuse entrepreneurship and innovation into the community at large,” said David Allen, UA VP and 34 BizTucson

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TLA’s executive director. “I give them a lot of credit. It’s really a good focal point and it’s been a wonderful collaboration. There’s a perspective of what we need today – but also the perspective of what we need to build for the longer term.” In October, the city selected Aztera – a Tucson-based product and business development company specializing in helping startups move from concept to marketplace – as the private partner. Eric Smith, Aztera business development manager, is embedded with Tech Launch Arizona to facilitate the partnership. “The value we bring to this partnership is the knowledge we have inside our own network internally. We have great connections, knowledge of technology and access to various individuals,” Smith said. Smith joins a tech launch team that’s grown rapidly since Allen arrived on

campus in September 2012. Smith, Aztera President Manny Teran and 90 percent of the company are UA alumni. “We’re committed to Tucson and we’re committed to the U of A,” he said. “What excites me most about this partnership is the response I’m seeing. We normally don’t hear the amount of buzz that we heard about this. One of my roles is being a gatekeeper for the network and what I hear from them is that the new way TLA is doing things is working.” Allen expects the launch of CNA to be a milestone in helping Tucson and Southern Arizona capitalize on its promise of entrepreneurship and innovation. “We’re a connecter in matching the expertise to what’s needed. It’s almost like a big search engine. We put into the network what the faculty gives to us in terms of the technology – and continued on page 36 >>> www.BizTucson.com

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BizTECHNOLOGY continued from page 34 what comes out is people who know an amazing amount about that field,” Allen said. UA innovators are among “a handful of people in a narrow area who are the best in the world. The technology that comes from that can also be very narrow. We need to find a response to understand that technology with people who have been doing that for a long time and have the ability to relate to the specifics of that technology.” The Commercialization Network Alliance is tied in with TLA’s Wheelhouse Network, headed by Sherry Hoskinson. “It was clear that the city wanted to establish a tangible presence in creating a new entrepreneurial environment and connect to The University of Arizona to encourage more technology-based startups that would result in more jobs and higher paying jobs,” Hoskinson said. “We structured the alliance to do those things and protect it from getting bogged down and distracted by other business. There was a lot of wisdom be-

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hind the decisions to design it as a consultant embedded in residence at Tech Launch Arizona.” The Wheelhouse Network has reached out to more than 50,000 UA alumni and maintains strong ties throughout the business community. “We have representatives on every group and organization that relates to entrepreneurship and business growth and now have a comprehensive network that’s growing all the time,” she said. “Another distinct benefit of having the network in house is our team is colocated with the license managers and Wheelhouse team members. When challenges and opportunities and needs come up, we can address them as a group. We add some scalability to what we do by being in one place.” Allen says there’s no simple formulaic way to connect faculty with the right business expertise – which emphasizes how important a diverse and well-informed network can be in finding the right partners to ensure success for startup tech companies.

“This is a very flexible, highly creative morphing kind of a system, as entrepreneurial networks are,” he said. “It’s important to have process experts too – serial entrepreneurs from different backgrounds – but we absolutely need those domain experts to help us learn about what the markets are for the technologies we have.” As a comprehensive research university with a wide breadth of faculty expertise, TLA needs to be able to put the right people together to capitalize on the opportunities that a technology presents for new business ventures. “Faculty seem to be very appreciative of the quality of people who are there,” Allen said. “It’s kind of amazing when you see a faculty member who’s been working for their professional adult life in a particular technology get to meet people working in that area. “We have to make it a meaningful relationship for them or they don’t come back. That’s the way we figure out how well it’s working. We expect this to be a very sustainable network.”

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Biggers Chairs Tucson Airport Authority Board Edwin L. Biggers was named chair of the Tucson Airport Authority board of directors. Biggers, president of Advanced Ceramics Manufacturing in Tucson and chairman of the Board of Regents for Pepperdine University, has been a TAA member since 1989 and previously served on the board. New TAA board officers are: • Chairman-Elect Steven R. Cole, president, Southwest Appraisal Associates • Secretary Michael F. Hannley, president and CEO, Bank of Tucson • Treasurer Steven D. Fell, senior VP, National Bank of Arizona • Assistant Secretary Tony Finley, CFO, Long Companies and Long Realty • Assistant Treasurer David Goldstein, president, Diamond Ventures

New board members are Goldstein, Lisa Lovallo, Southern Arizona Market VP for Cox Communications, and Judy Patrick, director and chairman of CopperPoint Mutual Insurance Co. New members are Francis X. Chambers, director of AvPORTS; Patty Doar, owner and CEO of Arizona Inn; Stephen Eggen, retired CFO of Raytheon Missile Systems; Todd Jackson, attorney with Jackson & Oden; Herb Kai, manager of Kai Family Entities; Dennis Minano, strategic consultant with DRM Strategies, and Michael Stilb, president and managing director of CBRE-MAS.

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Ivy Named Park Place GM Tami Ivy has been appointed GM of Park Place, and is responsible for driving tenant sales and positioning the mall for future growth. continued on page 39 >>> 38 BizTucson

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BizBRIEFS continued from page 38 “I couldn’t be happier than to take this position, where I can have a direct and positive impact on the shopping experience of Park Place’s customers every day,” said Ivy, a magna cum laude business administration graduate of The University of Arizona. “My career began in 1988 as an intern at Tucson Mall and I’ve spent the last nine years involved in Park Place and Tucson Mall’s marketing, so I’ve come full circle.” Ivy previously served as director of field marketing for General Growth Properties – the mall’s owner – and held senior positions in marketing in Tucson and Mesa. Before that, Ivy was marketing director for shopping center companies in Utah and Arkansas. Ivy is a senior certified marketing director with the International Council of Shopping Centers and is an ICSC maxi, merit and silver award winner for excellence in shopping center marketing. General Growth Properties is headquartered in Chicago.

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Brody Leads Sales & Marketing at The Westin La Paloma Resort & Spa Industry veteran Matt Brody has been named director of sales and marketing at The Westin La Paloma Resort & Spa. He has more than 17 years of experience in hospitality sales and marketing. “Matt’s long-standing success in the hospitality industry – both locally and nationally – will serve as an asset to our team,” said GM Glenn Sampert. As a member of the resort’s executive committee, Brody will be responsible for the formulation of sales, marketing and public relations activities for the 487-room resort and country club. Prior to joining The Westin La Paloma Resort & Spa team, Brody held sales and marketing leadership roles with several industry greats. Most recently he was with Marriott International as director of sales and marketing at the 575-room J.W. Marriott Starr Pass Resort & Spa, the 1,100room Renaissance Grand, and he spent nearly a decade with Walt Disney Company in Lake Buena Vista, Fla. Brody served on the Meeting Professionals International board of directors and has chaired several key committees. He is a member of Visit Tucson’s marketing co-op board and the Tucson International Airport Authority lift task force.

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PHOTO: AMY HASKELL

Hazard Control By Teya Vitu

Chrisann Karches

President Southwest Hazard Control 40 BizTucson

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BizABATEMENT Southwest Hazard Control has a modest presence in northwest Tucson with 68 employees at its office and warehouse. Big-name clients and annual revenue of $17 million, however, tell you that there’s more than meets the eye. “We’re bidding an asbestos removal project in Northern California at Stanford University,” said Chrisann Karches, SHC president. Her company previously cleared asbestos from Stanford’s Wilbur Hall and William F. Durand Building. Karches has run the family-owned firm since her father, Gerald Karches, retired in 1999 after quadruple bypass surgery. SHC was established as a hazardous materials remediation company in 1982, and today is the longest operating hazardous material abatement company in Arizona. Other major projects completed by SHC include asbestos removal from a courthouse in San Francisco and a nearly four-year asbestos abatement project at the former San Manuel BHP Copper smelter in Pinal County. Currently, SHC is bidding on contracts with The University of Arizona, Tucson Unified School District and Pima County. Over the years, Southwest Hazard Control opened mostly autonomous operations in Phoenix, Albuquerque, San Leandro, Calif.; a small operation in Sparks, Nev., and its newest hazard removal facility in Las Cruces, N.M., that opened in April 2012. “Honestly, we had an opportunity and we took it,” Chrisann Karches said. “You have a stronger company if you have a bigger foundation. I did have a business mentor – his message was growth, growth, growth. He really helped me grow the business in a sustainable way.” Asbestos removal and associated demolition makes up 70 percent of the revenue for the $17 million company – but SHC also has strong niches in lead paint and mold removal, taking out underground fuel storage tanks and numerous other environmental remediation and hazardous material abatement. SHC conducts about 1,300 to 1,500 remediation jobs per year. Asbestos removal is common and is

required to be removed before a building gets demolished or renovated. But what does the work entail? “You have to contain and isolate the entire work area with plastic and air filtration before you begin any work – and you have to continually wet the asbestos,” which is found in floor tile, drywall, sprayed-on acoustical material on ceilings and many other forms, Karches said. “We basically scrape it off the ceiling, use blades to pull up floor tiles, then bag the material in leak-tight containers. We take it to an approved landfill, where it has to be buried within 24 hours.” How about cleaning up lead and mold? Lead abatement nearly always involves paint removal. Mold stems

“

Honestly, we had an opportunity and we took it. You have a stronger company if you have a bigger foundation.

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mental Protection Agency launched an asbestos technical assistance program, followed in 1982 by the Asbestos-Containing Materials in Schools Rule, and in 1986 by the federal Asbestos Hazard Emergency Response Act. All these regulations led Gerald Karches to start Southwest Hazard Control in 1982 with initial work for the Navajo Nation to analyze schools for asbestos contamination. Karches came to her dad’s newly established Southwest Hazard Control that same year as a recent UA graduate with a degree in agriculture and thoughts of becoming a nutritionist. Instead, Gerald Karches said, he asked his eldest daughter to start by doing secretarial work. “Then she started keeping track of the financing,” he said. “Then she learned how to use the microscope to identify asbestos in samples of building materials. She was always a very responsible person.” In 1985, SHC evolved into an asbestos abatement firm. SHC added hazardous materials abatement in 1986 and lead abatement work in 1991. Expansions soon came into play. SHC established a Phoenix office in 1986 followed by the Albuquerque branch in 1987. In 1991, the company landed the Sandia National Laboratory contract – which it held for 20 years. A contract with San Leandro followed in 1992 to serve the San Francisco Bay area. “We were thinking outside the box all the time,” Chrisann Karches said. “We were learning. We made mistakes. But we never made the same mistake again. Thinking outside the box works best.” Gerald Karches said he had no problem turning the company over to his daughter as the 20th century drew to a close. “She had had experience across the board. She’s a take-charge person. She also has good people skills,” he said. Chrisann Karches presides over all the offices – yet she allows local managers to run the show to fit the niche market that they are in. SHC hires only locals in each community. “We do have protocols and standardization of work practices, and sound policies and procedures – but I do not micro manage each office,” she said. continued on page 42 >>>

”

– Chrisann Karches President, Southwest Hazard Control

from water leaks, floods or poor maintenance that allows moisture and water to accumulate. “What we use for lead abatement depends on the situation. We use chemical strippers for paint and gentle removal techniques when dealing with historical buildings. It takes a lot of time and patience – so we do not damage the underlying wood,” Karches said. “If it’s something you don’t have to be as careful with, another method is a blasting machine equipped with a HEPA filter that captures the dust at the source. Mold remediation can range from simple cleaning using a 10-percent solution of bleach and water to complete removal of moldy materials.” Long before Chrisann Karches stepped to the forefront, her father had a 22-year career at the National Institute for Occupational Safety and Health in Cincinnati and Boston, before he joined the UA faculty in the late 1970s. In 1979, the U.S. Environ-

Spring 2014 > > > BizTucson 41

BizABATEMENT continued from page 41 During its growth, SHC has had four homes in Tucson – all near Grant Road and Interstate 10. Since October 2009, SHC has owned its property and built an office and warehouse. “Rob Paulas Architects did a great job designing SHC’s new building with a lot of green touches such as water harvesting,” Karches said. One thing she insisted on, and architect Andrew Hesse embraced, was having the office and warehouse detached, even if by only a few feet. “It made a center courtyard where employees could hang out,” Hesse said. “It was their own little garden. Then we thought ‘Why not let other people through here?’ ” Eleven water harvesting tanks frame the entryway to the main entrance. Hesse originally drew in 12 tanks to close off the courtyard but removed one to create an entryway. Inside, you find soothing colors and abundant daylight from windows and solar tubes. Karches insisted on wood doors in the modern setting. A stalactite and piece of purple onyx are embedded in lighted wall nooks behind her desk. “This is a green building,” she said. “We collect our rainwater. I always tell people I want to make the world a better place. We all need to do the right thing with the environment.” The nutritionist in Karches also influences the workplace environment. “We always have fresh fruit for our employees,” she said. “The bananas go like crazy. People really love the fresh fruit that we have available. “ SHC employees – 167 across the Southwest – receive other benefits as well. Everyone gets paid vacations, healthcare, 401(k) retirement and paid holidays. Little touches like giving employees gift cards at Thanksgiving and Christmas and giving birthday cards signed by everyone are just some of the small things that employees appreciate. More than half the Tucson staff has been with SHC for 18 years. Most others have at least 15 years with the company. “You have to treat people really well, so they are willing to invest in a company that is being built for the long term, and this will benefit the community as well,” Karches said.

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Shubhayu Chakraborty

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PHOTO: AMY HASKELL

President, Securaplane

BizAVIATION

Securaplane Expands to Innovation Park By Romi Carrell Wittman

www.BizTucson.com

in the center of a controversy last year. The Federal Aviation Administration grounded all Boeing 787 Dreamliners because of problems with the aircraft’s lithium-ion batteries overheating and, in two cases, catching fire. The FAA investigated and determined that the Securaplane-made charging system was not the cause of these issues. This controversy did not slow the company down. It continues to grow as the economy rebounds. According to Shubhayu Chakraborty, president of Securaplane, the company is projecting revenue growth of around 50 percent during the next five years, as well as 25 to 30 percent growth in its workforce. But Chakraborty cautions that growth in the avionics industry takes time. “You win a contract and there’s a long cycle as the airplane is being developed. It’s not like Google,” he said. This is one of the reasons Securaplane has gone to great lengths to diversify its product offerings across business jets, commercial aircraft and helicopters. It’s also why the company strives to maintain its best-in-class PHOTO:COURTESY SECURAPLANE

Tucson became a major player in the aviation industry overnight in 1951 when Howard Hughes brought Hughes Aircraft to town. As the town grew, so did avionics. In the mid-1980s, Bermar “Bib” Stillwell, former president and COO of Gates Learjet, founded Securaplane – an aviation engineering firm that grew exponentially and just moved into a new 55,000-square-foot facility in Oro Valley’s Innovation Park. Securaplane joins some top-notch neighbors, among them the Roche Group’s Ventana Medical Systems and pharmaceutical giant Sanofi. Securaplane has three primary avionics business segments – power (including electronics and batteries), safety (including security and camera systems) and wireless devices such as emergency lighting and slope detection – plus a full range of support and repair services. Its products can be found in helicopters, in business jets and the largest commercial aircraft, including the Boeing 787. It was the Boeing 787 that landed Securaplane

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BizAVIATION

“

We have fundamentally a better mousetrap, a better engineered product. That’s what makes Securaplane stand apart. –

”

Shubhayu Chakraborty President, Securaplane

continued from page 45 status. “We are an engineering company. We win business because we make a better mousetrap than someone else,” Chakraborty said. “We don’t win business because we’re low cost or we have a bigger global footprint. We have fundamentally a better mousetrap, a better engineered product. That’s what makes Securaplane stand apart.” Securaplane was purchased in 2011 by Meggitt, a U.K.based global engineering firm specializing in extreme environment components, but all of Securaplane’s business segments and support functions are located in Tucson. The firm currently employs roughly 180 full-time employees working in the areas of engineering, sales and marketing, and manufacturing and assembly. “All of the engineering is fundamentally here,” Chakraborty said. “We have a partnership with an Indian company in Bangalore for software development, but in terms of production, all the final assembly and testing is done in Tucson.” When it became clear that the company was outgrowing its space on Oracle Road, management developed a modest expansion plan. “We looked at our growth and saw that we needed 5,000 square feet more in the next year,” Chakraborty said. “We thought we’d be able to get the space next door to us.” When the current tenants didn’t leave as expected, Chakraborty said management knew it had to change course. They began looking around town to find a space to accommodate their needs. They found that “warehouses didn’t have enough parking. Call centers needed too much refurbishing and the timeline would be as long as putting up our own building.” That’s when the team started looking at building its own space from the ground up. The project was completed in record time – just nine months from ground breaking to move in. “We started with 11 bidders and ended up with four sites that we really went into a lot of detail on. Of those continued on page 47 >>> 46 BizTucson

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continued from page 46 four sites, three were in Oro Valley and one was in Marana,” Chakraborty said. The selection team chose the Innovation Park site in Oro Valley. “I was impressed with the town and its level of organization, as well as its professional outlook,” he said. “It’s also a beautiful location and it will be great for recruiting.” Chakraborty said the Securaplane team, the construction team and town officials accomplished “a remarkable feat – completing the project on time, at cost and with impeccable quality.” Securaplane’s new facility is the first to emerge from Oro Valley’s newly established Economic Expansion Zone. Businesses in this zone benefit from streamlined permitting processes – meaning large facilities can be built and occupied in less than 18 months. Oro Valley Mayor Satish Hiremath says the Town Council created the EEZ expressly for projects like Securaplane’s. “In a recession economy, we can’t keep doing what we normally do,” Hiremath said. “The concept of shovel ready has changed for business, so we created the zone.” Typically, a company seeking to build could expect a project timeline anywhere from 18 months or longer, Hiremath said, given permitting issues as well as construction. The EEZ cuts anywhere from nine to 12 months off the permitting process, meaning businesses can get up and running faster. Mike Wattis of Michael R. Wattis, the real estate development firm leading the project, said the town’s EEZ has been a huge advantage to the project. “Our project was really the first development built from the ground up in the zone, and I can tell you that the town officials, particularly the mayor and council, all the way through the division heads, were very attuned to our needs and worked hard to expedite the process,” Wattis said. “You could tell staff was trying to understand our point of view.” Wattis said the project is evidence that the economy is really starting to come back in earnest. “You don’t have to be a rocket scientist to see we’ve been in a downturn,” he said. “This project is a nongovernment development built from the ground up and there haven’t been many of those in recent years. And this is an existing employer that’s expanding. It’s all very positive and it’s been a lot of fun to work with them.” Hiremath said the addition of Securaplane to Innovation Park is a positive and important development for Oro Valley and the Southern Arizona region. “This goes well beyond just bioscience and biotech,” he said. “The more companies that move in, the better it is for the ancillary businesses like retail, dry cleaners, that kind of thing. The bottom line is it’s about creating jobs.” Hiremath is proud of Oro Valley and what it has accomplished with the EEZ. “I don’t think there is anywhere else in the country doing anything as unique as this,” he said.

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BizMILESTONE Abbott Taylor

PHOTO: AMY HASKELL

Jeweler

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New Technology Ignites His Passion By Christy Krueger A truly dedicated artist finds a way to make a living pursuing his passion. For Abbott Taylor, his skill and love for jewelry design more or less found him. And now, 40 years and 10,000 original designs later, he’s still excited to go to work every day. After studying art at the University of Connecticut and making a modest living as a touring rock musician, Taylor headed west to Tucson where he landed work at a silversmith shop. He moved on to a jewelry repair apprenticeship with Dick Marshall, who later opened the stores that became Marshall’s Jewelers. “I loved it. I learned from a very accomplished jeweler,” Taylor said. Even working 12-hour days, he enjoyed it so much he bought the business with an $18,500 bank loan. He quickly realized he should be using his artistic skills to design and create jewelry. In 1981 he opened a retail store in El Mercado Shopping Center at Broadway Blvd. and Wilmot Road and within two years tripled his billing. Abbott Taylor Jewelers’ current location at 6383 E. Grant Road has an open showroom with behind-the-scenes workshops for casting, cutting, cleaning and polishing. One-of-a-kind originals make up a majority of Taylor’s sales. Not only are his products unique, he’s particular about perfection in production and using earth-friendly materials. “I make exquisitely hand-crafted pieces made with ecologically conscious metals and stones at competitive prices.” He explained that most gold mining is not friendly to the earth because the process puts arsenic and mercury into the soil. Instead, he buys recycled www.BizTucson.com

gold for his creations. The jewelry industry has a term – eye clean – “which means no visible imperfections and only minor ones under the microscope. I try to exceed that,” Taylor said. He admitted that his business model is unique. “There are few jewelers in this country that would choose to do what I do. We don’t have volume production. Doing hand crafting for almost every customer is an insane business plan.” His customers appreciate it. Historically, approximately 75 percent of his sales have been repeat business. This is changing now, with the advent of social media. “Because of the new media, new young customers are making up about one-third of business.” To celebrate 40 years in the jewelry business, Taylor ran a social-mediabased anniversary promotion during fourth quarter 2013. He offered a $4,000 custom-design giveaway for those who entered the contest on Facebook or came into the store between October and December 15. His daughter suggested requiring Facebook entrants to share. As a result, in the first three days he had 1,244 shares, 115 comments, 70,000 views and an additional 600 likes. The centerpiece for Taylor’s Facebook ad was the image of an extraordinary work he calls The Ring. “It’s the one I made for my wife as an anniversary ring. This is the bar I set for myself as a design to exceed.” More traditional advertising media – such as TV, radio and direct mail – are still a part of Taylor’s marketing strategy, but he keeps an eye out for new

opportunities with technology. He’s currently redesigning his website and is working on an app for engagement and wedding rings. That should be available in about a year. His success over four decades taught Taylor a few things and he’s happy to share advice with others. “Pay attention to the customers. Be 100 percent reliable, trustworthy, sympathetic and empathetic and see it from their viewpoint. It’s not good enough to just sell them something. Treat them like royalty and make them feel comfortable and wanted.” Charity organizations often come to Taylor with requests for support. “I’ve always been involved with charity – on boards, events, donations of jewelry. I’m now on the board of Ballet Tucson and in the past with the American Heart Association. It’s important, if and when I can, to donate back to the community.” While Taylor’s daughter encouraged him to update his marketing strategy and advertising outlets, his son persuaded him to step into the 21st century with his design tools. He’s tremendously glad he followed that advice. “At one point I thought about retiring, but my son came along three years ago and said, ‘you’re living in the past, you need to update your software.’” Taylor did, and what he found amazed him. He thrilled in seeing his designs in three-dimensional renderings, and his creative passion was rekindled. “It allowed me to springboard into the future and it’s given me new wings. Now I’m back in with a gritty excitement.”

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BizHONOR

Styling Success By Romi Carrell Wittman

Boys & Girls Clubs of Tucson 2014 Click For Kids Honorees Jana Westerbeke Co-President, Gadabout SalonSpas Pam McNair-Wingate Founder, Gadabout SalonSpas

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PHOTO: KRIS HANNING

From left â&#x20AC;&#x201C;

A stylin’ family has left its beauty mark on Tucson. Pam McNair-Wingate opened the first Gadabout salon in 1979. Her concept blossomed into a multi-million dollar enterprise that’s earned international acclaim – and brightened the spirits of customers throughout Tucson. Daughter Jana grew up in the beauty industry, shares her mother’s passion and now heads the company that has almost 300 employees, five Gadabout SalonSpas, two VerVe Aveda Lifestyle Concepts salons and a corporate resource center. One of Pam’s earliest hires was Frank Westerbeke, a stylist in training. Pam became his mentor, his friend and, ultimately, his mother-in-law. Over the years, Jana and Frank worked together, fell in love, married and raised two daughters. Today they are co-presidents of the thriving company. The first Gadabout was a single 800-square foot salon at Camino Principal near the Tucson Country Club on Tucson’s eastside. Much of Gadabout’s success can be traced to Pam’s business acumen and spot-on marketing instincts. “When we opened, it was unheard of for salons to buy advertising,” she said. “We advertised from the beginning.” Those early advertising efforts paid huge dividends for the company, establishing the salon in the minds of consumers as the premiere destination for spa and salon services in Tucson. To this day Gadabout has a robust marketing program that encompasses print, television and online media. Pam was equally innovative when it came to education. Gadabout was the first and only salon in Tucson to offer an internship for recent graduates of cosmetology school. It’s a program that’s expanded over the years. Today Gadabout offers internship programs for all aspects of the salon industry – from hair to spa to guest services. From the start, Pam felt that her best investment was in employees. “We educate our staff from the beginning and have found this builds loyalty,” said Jana, Gadabout’s co-president and director of guest services. “Education is part of our culture. We grow our staff – and that builds a very strong team,” www.BizTucson.com

she added. In fact, Jana was Gadabout’s very first intern, coming to work and learning on the job just after graduating from cosmetology school. She was a stylist for some 25 years before shifting her focus to the day-to-day operations of the business. In 1982, Pam opened a second location at Oracle and Ina Roads, followed closely by a third at Broadway and Country Club. Canyon Ranch then approached McNair-Wingate about opening a salon on premises incorporating Gadabout’s culture and experience. Together the two firms built a partnership that lasted for 15 years until McNair relocated the salon to her own eastside location. Pam was also a firm believer in owning her salons, rather than paying rent on the space they occupied. In 1986, the Small Business Administration was making loans to female business owners. It was then she purchased her first property, for what is now Gadabout’s eastside location on Grant Road. When the savings and loan crisis of the late 1980s unfolded, McNairWingate was able to purchase property at St. Philip’s Plaza and build another free-standing salon. From that point on, she resolved to own her salons’ properties, a move that was a wise long-term investment. In 2003, Jana and Frank encouraged a partnership with Aveda and opened a unique lifestyle concept salon – VerVe – that uses Aveda products exclusively. VerVe is a separate and distinct concept from the Gadabout model and does not use any of Gadabout’s marketing. Now with a second location on Swan and Fort Lowell Roads, where Gadabout Man was once located, it’s building its own brand in the Tucson community. By 2005, Pam began transitioning day-to-day business operations to Jana and Frank, while remaining part of the visionary process. Frank said, “It has been a dream to watch this company evolve with the community – and to support our staff in succeeding in many ways other than just conventional business.” Jana added, “The future of Gadabout is evolution,” she said. “Gad-

Boys & Girls Clubs of Tucson The Boys & Girls Clubs of Tucson has served Tucson’s youth for more than 50 years. Six clubhouses located throughout Tucson provide a safe, fun place for kids to go after school. Programs are offered year-round and membership dues are just $10 per school year and $10 per summer session. The organization opened its first clubhouse in 1963 and was known simply as The Boys Club. In 1985, the group changed its name to the Boys & Girls Club to better reflect the services it offers to all kids. Today the Boys & Girls Clubs serve more than 6,000 kids throughout Tucson. The Clubs offer character and leadership programs, as well as academic and career preparation. There are also extensive sports and fitness programs, as well as programs focusing on the arts. The organization raises funds throughout the year to sustain clubhouse operations. In 2013, the Boys & Girls Clubs reported revenues of $2.8 million, all of which was put back into the community. Because the Boys & Girls Clubs has such a strong volunteer base, the organization is able to return 78 cents of every dollar raised directly back to its clubhouse programs. The 23rd Annual Boys & Girls Clubs of Tucson Steak & Burger Dinner will celebrate the scholastic and service achievements of 12 outstanding Youth of the Year from all six Boys & Girls Clubs of Tucson Clubhouses. Arizona Head Football Coach Rich Rodriguez and his family are this year’s hosts.

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BizHONOR

“

Education is part of our culture. We grow our staff – and that builds a very strong team.

”

Jana Westerbeke Co-President Gadabout SalonSpas –

continued from page 51 about will continue to grow and evolve based on the fashion, vision, needs and desires of our community through our staff and guests. Having our children grow up in this beautiful community, they will tell the story of the next generation in our industry.” Over the years, Gadabout and its owners have won many awards in the industry, including presentations in London and Germany. Pam, Frank and Jana received the Global Salon Business Award for Excellence in Salon Leadership. From the start, Pam believed in giving back – not only to her industry but also the community. Today the company website includes a dozen logos of local projects they support including charities that serve women, children and animals. Both mother and daughter feel strongly that helping wherever they can is central to Gadabout’s mission. They’ve won many honors – the latest which will be the 2014 Click for Kids Award in recognition of their commitment to the Boys & Girls Clubs of Tucson. They’ll be honored at the Boys & Girls Clubs Steak and Burger Dinner on June 14 at Casino Del Sol. “There are no words to express the gratitude that I have for all that Pam and Jana have given to this organization throughout the years, and for all that they will do for our kids in the future,” said Kym Adair, current board president of the clubs and director of marketing for Nova Home Loans. “Pam continued on page 53 >>> 52 BizTucson

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continued from page 52 joined the Boys & Girls Clubs board in 1984 and her impact was immediately felt,” Adair said. Today Pam serves on the Emeritus Board of the Directors. Jana joined the board in 2002 and, among other leadership roles, served as board president and chair of the 2012 PARTY, the group’s largest annual fundraiser. She said, “It’s a wonderful organization. The Boys & Girls Clubs help so many kids and their families, many of whom are headed by a single parent. We encourage our staff to send their kids to one of the Boys and Girls Clubhouses after school.” Pam said, “This award is such a tremendous honor. Jim Click has been an inspiration as an entrepreneur and community advocate. To be recognized and receive the award with his name, it just is such an honor.” Gadabout SalonSpas has shown its corporate commitment to the clubs a wide variety of ways – from sponsoring special events to providing no-cost haircuts to Youth of the Year winners as well as club staff on their birthdays. The salon has also participated in the annual Image Up program to enhance kids’ self-esteem and educate them on life skills and hosted Girl Power Day to help promote self-esteem. The Boys & Girls Clubs Click for Kids Award was created in 2009 to honor enduring supporter Jim Click. Each year the award is given to an individual or a couple who made a major impact in the lives of children at the Boys & Girls Clubs of Tucson. “The award is really exciting,” Jana said. “When we found out, we were delighted and humbled. I see the winners who have come before us and am just blown away by their commitment to the community. To be honored in that same circle – it’s just fantastic.” Biz

24TH ANNUAL BOYS & GIRLS CLUBS OF TUCSON STEAK & BURGER DINNER Honoring The Youths of the Year & Click For Kids Award Recipients Pam McNair-Wingate & Jana Westerbeke

Saturday, June 14 Casino del Sol www.bgctucson.org www.BizTucson.com

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BizLEGAL

Employment Law and Order SHRM to Hold Annual Info-Packed Event By Valerie Vinyard Human resources departments have been known to strike fear in employees. After all, those departments generally are tasked with hiring – and firing – workers, along with enforcing company rules and policies. The Society for Human Resources Management, or SHRM, wants people to look beyond that and see the important functions of human resources. As SHRM of Greater Tucson’s president, Garrett Kowalewski believes human resources departments should be seen as enablers of career development and business production. “SHRM seeks to foster excellence in business and productivity by enhancing the knowledge and capabilities of the business community as a whole,” said Kowalewski, who also is the president and CEO of Staff Matters, a Tucsonbased recruiting and staffing service. SHRM of Greater Tucson was founded in 1989 with the goal of informing and enlightening the HR community. It also educates the business community at large through monthly workshops and other events, including three flagship events held each year. One of those events will take place April 8 at The Westin La Paloma Resort & Spa. The 2014 annual Employment Law Update will feature 10 lawyers from Lewis Roca Rothgerber. Trish Kordas is president-elect of SHRM. The VP of human resources for Tucson Federal Credit Union said the event is relevant to not just HR practitioners but also the business com-

munity as a whole. Though the title might sound intimidating, people who attend the April event should “expect to be in the know about changes to or new employee laws affecting people,” Kordas said. “The leading cause of legal issues is inconsistently applying policies and procedures,” Kordas said. “We’re not the police. We support managers’ decisions. We enforce the policies and procedures.” SHRM, which is based in Washington, D.C., is regarded as the premier voice for all human resource-related matters. The Tucson organization represents about 200 companies and 385 members, with the number of employees represented being well into the six figures. Kowalewski is quick to note that although SHRM is an authority to HR

SHRM’S 2014 ANNUAL EMPLOYMENT LAW UPDATE Tuesday, April 8 8:15 a.m. to 4 p.m. The Westin La Paloma Resort & Spa $105 for members $180 for non-members www.shrmgt.org (520) 299-6787

practitioners, the organization also attracts a number of people from the general business community. SHRM works with Lewis Roca Rothgerber to organize the event. Formerly Lewis and Roca, the law firm merged with Rothgerber in September 2013 and employs about 250 lawyers in nine cities. Abbe Goncharsky is a partner with the firm and one of the lawyers participating in the event. This year’s theme is “Construction: Building a Better HR Community.” Activities at the all-day event will include word games, seminars and a game show at lunchtime. “It’s the simple things we talk about,” Goncharsky said. “A lot of things are driven by the culture and employee morale, things like having popcorn in the break room on Thursday afternoons. Just saying ‘thank you’ can go a really long way.” The other two flagship events held by SHRM are a biannual awards event and a well-known national or international speaker who comes to Tucson each fall. All events are open to the public. “People who go to the event will leave with more information than they came with,” Goncharsky said. “Lawyers don’t have to be stuffy and cold – we like to show our personalities. We try to make the entire day engaging and dynamic. More often than not, we hear from attendees that they can’t wait until next year.”

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Five Things You’ll Learn at the 2014 Employment Law Update 1. Top trends in social media and their impact.

3. The latest and greatest in healthcare legislation.

2. Federal and state legislative updates – changes to existing laws, new laws, legislation that is likely to pass and trending case law.

4. All things EEOC – trends and information.

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5. How to conduct your business in a way that prevents lawsuits.

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BizBENEFIT

Actor-musician Gary Sinese and the Lt. Dan Band

Rockin’ to Sock Cancer By Sheryl Kornman Springtime, the American Cancer Society’s annual black tie gala – this year a dinner-dance party – will be April 26 at The Westin La Paloma Resort & Spa. The fundraising event gives business owners, investors, philanthropists and community leaders the opportunity to rock out, enjoy cocktails, fine dining, live and silent auction and dancing while contributing to cancer research and local programs that help extend and save the lives of those with cancer and help caregivers, too. The gala’s 2014 chair is Linda Wojtowicz, former COO of Tucson Medical Center, now CEO of Boys & Girls Clubs of Tucson. Wojtowicz is an oncology and bone marrow transplant nurse by training. The event will recognize cancer survivors and those now in treatment, Wojtowicz said. Actor-musician Gary Sinese and the 56 BizTucson

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Lt. Dan Band, a popular cover band that tours military bases around the world, headlines the 2014 gala. “He’s very good and very engaging,” Wojtowicz said. Sinese named his band for the Vietnam War amputee he portrayed in the film “Forrest Gump.” TMC is title sponsor of the 2014 gala. Norma Zimdahl is the Supporting Sponsor and Ventana Medical Systems

AMERICAN CANCER SOCIETY SPRINGTIME GALA Saturday, April 26 6 p.m. cocktails, 7 p.m. dinner The Westin La Paloma Resort & Spa $300 a person (520) 323-4217 dot.walker@cancer.org www.tucsongala.com

is a Platinum Sponsor. Blue Cross Blue Shield of Arizona is the Silver Sponsor and BizTucson, KVOA-TV and Tucson Lifestyle are media partners. Wojtowicz is an unusually well-prepared cancer benefit chair. As a bedside nurse, she has seen the devastating effects of cancer on patients and their families. “When you’re a nurse in the room you have a deep understanding of what’s really going on,” she said. “I have a heightened awareness.” Among her patients were military veterans back from Vietnam suffering from cancer caused by Agent Orange exposure, and very young women with breast cancer. One was just 25. “Breast cancer is very aggressive at that age,” Wojtowicz said. Funds raised at the gala will go to the American Cancer Society and then return to the Cancer Society in Tucson for use in medical research and for programs and services that help people www.BizTucson.com

with cancer and their caregivers. “We really do benefit from this,” she said. Although the event will be a glamorous, fun dance party, “we are very conscious of donor dollars. We respect donor dollars and sponsor dollars by exercising fiduciary responsibility so we can get as much money as we can for the cause.” “This is the big one – cancer. If someone hasn’t been touched by it yet, they will be,” Wojtowicz said. “It’s not a rare or unusual thing. Just about everyone knows someone or has had someone in their family or among their friends who has been diagnosed with some form of cancer.” Many of those who volunteer on Springtime’s sponsorship and auction committees are personally affected by cancer and have “compelling personal reasons for wanting to make a difference,” she said. Dot Walker, senior events specialist at the Great West Division of the American Cancer Society in Tucson, said the society has more than $5.5 million invested in multi-year cancer research grants at The University of Arizona. “We have one of the best research centers in the nation in our backyard and we can do great things,” Wojtowicz said. “When I practiced nursing, some of the therapies we used at the time are no longer practiced at all. In 20 years, we will look back and say, ‘Oh my, what are we doing now?’ We are a very real player in these changing therapies, but the research needs to get funded.” The local office of the Cancer Society provides a range of ancillary services to the community – “very robust education and support programs,” Wojtowicz said. There are classes for caregivers and for patients, free wigs, hats, scarves and turbans for patients, and support groups for family and friends of cancer patients. The society provides transportation to and from treatment for patients in its Road to Recovery service. Its Lodging Program helps provide free or discounted lodging for patients who must travel a distance for treatment. The Patient Navigator program helps patients stay on track with treatment and care. Look Good Feel Better helps patients in active treatment mitigate some side effects of cancer therapies, and Reach to Recovery provides trained volunteers who share information with cancer patients about diagnosis and treatment. Biz www.BizTucson.com

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BizHONOR

UA Executive of the Year

Janet Napolitano By Jacquelyn Jackson

Women’s leadership will take center stage on April 18 when former Arizona Gov. Janet Napolitano is presented the 2014 University of Arizona Executive of the Year by Ann Weaver Hart, the UA’s first female president. Napolitano currently serves as president of the University of California system and recently was part of the United States delegation to the Sochi Olympics. She served as U.S. Secretary of Homeland Security from 2009 to 2013 and as governor of Arizona from 2003 to 2009. Len Jessup, dean of the Eller College of Management, will present the award with Hart. Eller’s national board of advisors established the award in 1983. Jessup said, “Janet Napolitano has run large, complex organizations across many settings, from the State of Arizona to a relatively new federal agency of great importance to every U.S. citizen, and now the largest innovation engine in the world – the UC system.” A glance at Napolitano’s resume reveals just how deserving she is of this prestigious award. Her current charge – the UC system – encompasses 10 campuses, five medical centers, three affiliated national laboratories and a statewide agriculture and natural resources programs. Total operating budget is 58 BizTucson

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more than $24 billion with 234,000 students, approximately 208,000 faculty and staff and more than 1.6 million living alumni. President Barack Obama tapped Napolitano to head the Department of Homeland Security. In that role, Napolitano headed a department comprised of 22 agencies and a directorate with a mission that covered counterterrorism, border security, immigration, cyber security and disaster response and recovery. As governor of Arizona, Napolitano focused on education from pre-kindergarten through higher education. She

2014 UNIVERSITY OF ARIZONA EXECUTIVE OF THE YEAR HONORING JANET NAPOLITANO Friday, April 18 The Westin La Paloma Resort and Spa Registration 11:30 a.m. Luncheon & address noon to 1:30 pm $85 per person or $850 for table ten Register at eller.arizona.edu/eoy

was also the first woman to chair the National Governors Association and was named one of the nation’s top five governors by Time magazine. More recently, Forbes magazine named her as one of the 10 most powerful women in the world. The Eller award recognizes individuals who “exemplify executive qualities in private enterprise and public service.” Previous recipients include Laurence M. Baer, president and CEO of the San Francisco Giants in 2013, Robert M. Gates, former U.S. Secretary of Defense in 2012 and Howard Schultz, chairman, president and CEO of Starbucks in 2011. The only other woman to win the award was Ann Fudge, who was chairman and CEO of Young & Rubicon Brands in 2005. The Eller College of Management is internationally recognized for excellence and innovation. Among its leading endeavors are pioneering research, innovative curriculum distinguished faculty, excellence in management information systems, entrepreneurships and social responsibility. U.S. News & World Report ranks Eller’s undergraduate program 12th among public business schools in the nation.

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BizSPORTS

High Life Arizona Basketball Soars Again With Sean Miller By Steve Rivera Sean Miller said yes. Then he said no. The future of men’s basketball at The University of Arizona hung in the balance. Then, his final decision came overnight. He said yes. Miller’s choice to become the Wildcats’ coach came over three days of hard thinking and high-flying negotiations, and it is the moment in which another winning era of Arizona basketball was launched. How could Miller – one of college basketball’s up-andcoming coaches at the time – turn down one of college basketball’s premier jobs? Ultimately, he couldn’t. Miller, who had called Xavier University home for eight years, said upon his hire in April 2009 that being the coach of Arizona was an “opportunity of a lifetime,” adding it was a place where competing for national championships every season was possible. “To be in charge of a new era of Arizona Basketball and to build this program towards winning a national championship again is where my heart is,” Miller said then. “I look forward to this new day in my family’s life in Tucson, Arizona.” Seemingly, nothing has changed.

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He’s on record as saying his family is happy in the desert southwest. He’s already said no to a possible job in Maryland, instead staying at Arizona where he’s built a program much like Lute Olson did when he arrived in the early 1980s. Now, like then, UA could be among the national elite for a very long time. “He’s obviously one of the greatest coaches in college basketball,” said junior point guard T.J. McConnell. “The sky is the limit for him. He’ll continue to bring in the best recruits and be one of the top coaches in the country. I have no worries about him.” No worries – since arriving at Arizona, Miller has signed 19 recruits ranked in the national top 100, the second most in the nation over that span. It’s resulted in three consecutive top 10 recruiting classes, and likely four after final rankings for the 2014 class are established. He has signed five McDonald’s High School All-Americans – Aaron Gordon, Rondae Hollis-Jefferson, Grant Jerrett, Brandon Ashley and incoming freshman Stanley Johnson. Entering March, Miller had won about 73 percent of his games at Arizona. “What he brings is a fire to win,” said Bill Raftery, a Fox Sports college basketball analyst. “And it’s a fire to win with style. Sean is a very competitive person and he coaches with that competitiveness very well.” continued on page 62 >>> www.BizTucson.com

Sean Miller

Head Coach Arizona Basketball

What Miller tells his players 1.

Expect greatness “Embrace high standards both on and off the court and strive for excellence in both.”

Team first “Any successful person focuses on team goals more than individual goals and knows his role on the team. He takes pride in it and executes.”

3. Accept responsibility “Tell the truth and make no excuses regardless of the circumstance.”

PHOTO: CHRIS MOONEY

4. Pride “Represent yourself, your family and your organization in a first-class manner at all times.” 5.

Respect “Respect your teammates, care about them and take responsibility for their well- being. Treat them as family.”

Identity “Know your identity – be smart, tough-minded, well-conditioned and unselfish in all that you do.”

7. Get defensive “Team defense wins championships. Every player must be committed to his development in this area.” As reported in BizTucson Winter 2010 edition.

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BizSPORTS

“

What he brings is a f ire to win. And it’s a f ire to win with style. Sean is a very competitive person and he coaches with that competitiveness very well. –

Bill Raftery, College Basketball Analyst, Fox Sports

PHOTOS: CHRIS MOONEY

continued from page 60

Arizona point guard T.J. McConnell

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Miller, 45, has led UA to record-setting performances, with the Wildcats winning 21 consecutive games to begin this season and ranking No. 1 in the polls for a school-record eight straight weeks. Talk of a national title has long been the case at Arizona, but it was seemingly magnified in late November when Arizona went into Madison Square Garden and beat longtime rival Duke in the NIT Season Tip-Off. But always pragmatic and straightforward, Miller borrowed a business axiom: Past performance is no guarantee of future success. “It doesn’t mean that next January things are going to be working out,” Miller said at the time. “With so much turnover in college basketball you really move in these one-week, one-month periods of time. When you do that, it gets you to where you want to go a little easier.” The season-ending injury to Ashley didn’t help Arizona’s ability to make a deep run in the NCAA Tournament. But betting against Miller is like betting against sunshine in Tucson. “It’s going to take some maneuvering and adjusting without Brandon because it’s big and it shakes up a team,” Raftery said in late February. “But I like how they play and it’s fun to watch them. They are like Lute’s teams and very unselfish. There’s a lot to like.” Miller’s crew is still very capable. That was the case in 2011, when Derrick Williams put the team on his back and carried the Wildcats to the Elite Eight. They fell one game shy of the Final Four, losing to eventual champion Connecticut. Last season, Arizona, after winning 14 consecutive games to start the season, struggled in February but regained some momentum to reach the Sweet

”

16, losing to Ohio State on a last-second shot. Miller, a one-time kid prodigy who bounced and balanced balls on “The Tonight Show Starring Johnny Carson,” is still seeking the biggest spotlight. But if he was able to dream of college basketball’s biggest prizes when he arrived at Arizona, he was also thinking, again, pragmatically. “I didn’t know how it was going to work,” he said. “A lot of people talk about having a three-year plan or fiveyear plan, but I was just hoping I wasn’t going to be fired. I was hoping I’d be here in my fifth year or sixth year. “There are so many factors that disarm you, injuries (being one) and we’re going through that now. There’s bad luck in recruiting and not being able to recruit at the level you’d hope. I’ve been thankful I’ve been able to get both feet on the ground here. What I really hope is that we have a foundation that is really strong and that we are built for the future.” That’s undeniable. What he’s already done has been remarkable to many, particularly under the circumstances. The program had a couple of chaotic transitional years in which Kevin O’Neill and Russ Pennell/Mike Dunlap took over as interim coaches while the Hall of Famer Olson dealt with health issues and, ultimately, retirement. “You don’t know how difficult it is to replace a legend,” said Bill Walton, who is familiar with UA through his work as college basketball television analyst and because his son, Luke, played for Olson. “Chick Hearn, John Wooden, Phil Jackson, Red Auerbach, Jerry Tarkanian and Lute Olson. But to see this crowd (at McKale Center), this loyalty continued on page 64 >>> www.BizTucson.com

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BizSPORTS

“

Sean cares about the kids academically. He’s relentless in recruiting and is a tremendous floor coach. And, on top of all that, he’s a really good guy.

”

– Greg Byrne VP for Athletics The University of Arizona

continued from page 62 and the fans come here and do what they do is amazing. Lute built it (and) it’s about sustainability. Lute did it for nearly 30 years. “And now it’s being done again. What Sean has done is absolutely remarkable and in such a short time,” Walton added. He said everything starts at the top – from UA President Ann Weaver Hart to VP for Athletics Greg Byrne to Miller and his ability to lead. It’s also helped that former players Damon Stoudamire and Joseph Blair have returned. Stoudamire is an assistant coach, and Blair is an undergraduate assistant. They are part of Miller’s motto “A Player’s Program” – his attempt to connect former UA players to current teams. It’s now a brand. It’s about saluting the past and celebrating the future. “I like what I see,” said Bob Elliott, who is second on the school’s all-time scoring list. “And not just on the court but off of it. Sean’s record not just here but at Xavier is what needs to happen – he’s graduating players.” Elliott also lauds Miller’s “A Player’s Program” philosophy because of what it emphasizes. “Traditions and the program,” Elliott said. “He has said he wants the former players to have pride in our program. What he’s doing right now is paving more asphalt on that road. “Freddie (Snowden) paved some. Lute Olson paved some. And now Sean is paving some. That’s when and how you get a program that is nationally recognized.” Byrne hopes it continues. The last four years have been a joyride for Byrne, who became the boss about a year after former Athletic Director Jim Livengood finally signed Miller in April 2009. “(Miller) is one of the best inheritances anybody has ever received,” Byrne said. “Sean is the epitome of the modern basketball coach. He cares about the kids academically. The compliance people love working with him and his staff. He’s relentless in recruiting and is a tremendous floor coach. And, on top of all that, he’s a really good guy.” Biz 64 BizTucson

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BizSPORTS

Basketball Town, USA

100 Years of Arizona Basketball History By Steve Rivera For Bob Elliott, “Tucson A Basketball Town” is about “setting the record straight.” In doing so, it’s a reminder that The University of Arizona’s sensational basketball program had a lively history before Lute Olson rode into town. “The idea first hit me to write a book last year during basketball season, which is also tax season,” said Elliott, who runs an accounting business in Tucson. “It’s probably been a thought there for decades. I had to wait to get past April 15.” Once he was past it, he worked diligently on his 160-page paperback, which covers 100 years of Arizona basketball history but centers on the mid1970s, when he starred at the UA behind pioneer coach Fred Snowden and a bunch of freshmen called the Kiddie Corps. “Almost anyone who has been around going back to that time would know what (a great feeling) that was at that time in McKale Center,” Elliott said. The book came out in late February. “I learned a lot – from the book publishing end,” Elliott said, smiling. “I have a couple more books in my head.” What Arizona’s second all-time scorer learned was that there was “no need to reinvent the wheel.” Just write and tell stories as clearly as possible. His main point: Tucson is a basketball town and has been for more than 66 BizTucson

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40 years. Everyone can thank Snowden for that, he said. “This was about Tucson’s love affair with Arizona basketball,” he said. “It’s about how it started and how it got there.” Elliott – known as “Big Bird” in his playing days – was arguably the school’s all-time best player ... until an unrelated Elliott (Sean) came onto the scene. But Bob’s legacy was set: Good guy, good player, and, oh yes, smart. “I would hope that my message is that you can combine academics and athletic excellence,” Elliott said. “It’s possible.” He’s been involved and successful in Tucson and throughout the United States, serving as a board member on numerous nonprofits and business organizations. “It’s about being involved in the community,” he said. “There’s a saying that where much is given, much is expected. And, if you receive, you should be giving back.” Now, he’s just having fun with the book. Once he started – with the help of former teammate and co-author Eric Money – it was hard to stop, getting exclusive interviews with Olson, current head coach Sean Miller and a number of stars since the 1970s. It was a labor of love for a guy who bleeds cardinal and navy and has the numbers (2,125 points, 1,083 rebounds)

to prove it. The book goes from 1904 to the 2013 Sweet 16, with 80 percent of the content focusing on Snowden’s tenure. He coached from 1972 to 1982, escorting Arizona into the Pac-10 Conference in 1978. Elliott said the school “didn’t have an athletic footprint” in the early 1970s. By bringing in Snowden and football coach Jim Young, it made a mark. In basketball, UA was opening McKale Center in 1973, and athletic director Dave Strack decided on Snowden, a 36-year-old assistant coach at Michigan, to lead a new era. Snowden was the first African-American head coach at a major program in a major conference. “I tried to get the impact of what Freddie Snowden, being an AfricanAmerican, meant at that time in Tucson,” Elliott said. Starting with the 1972-73 season, UA had one of the most exciting teams in the country behind the Kiddie Corps, which included Coniel Norman and Money. “That was a game-changer,” Elliott said. “Freshman athletes had never been allowed to play varsity basketball in 1972. Snowden starts the freshmen and it’s a brand of basketball no one in Tucson had ever seen.” “Tucson a Basketball Town” is available for $14.95 at the UA Bookstore.

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PHOTOS: COURTESY OF ARIZONA ATHLETICS

BizSPORTS

From left: UA VP for Athletics Greg Byrne, Donors Jeannie and Cole Davis, Associate Athletics Director Judi Kessler

Fans Fund

McKale Facelift By Steve Rivera McKale Center has been a gem in the desert, the home of The University of Arizona men’s basketball program. But even gems need to be polished every now and again to shine brightly. Now is that time. UA officials will spend $30 million in the short term and $80 million over three construction phases to give the 41-year-old arena a facelift. The $30 million for Phase 1 “will take care of some of the fan amenities that we need and a lot of the student-athlete issues,” said VP for Athletics Greg Byrne. The student-athlete amenities include locker rooms, lounges and academic accommodations. The fan amenities are new seats and handrails, expanded and improved concessions and restrooms. You can almost hear the fans cheering now. “It may look like a completely different building at some point,” Byrne said, “but we’re a long ways away from that.” In the meantime, Arizona unveiled a lavish – and massive – scoreboard above Lute & Bobbi Olson Court in January. The 68 BizTucson

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high-definition screens, measuring 12-by-19 feet, are 25 percent larger than the previous video boards. UA players often glance up to see themselves dunk in the replays. The new McKale Center scoreboard, as well as the huge screen installed at Arizona Stadium before the 2012 season, are part of Byrne’s vision to improve the fan experience at a time when watching games on TV at home is an increasingly popular option. By early April, Byrne expects to have the $30 million needed to complete Phase 1, which is scheduled for completion before the next basketball season. “We’re making good progress,” Byrne said of incoming donations. “We have more than $25 million as of February so I’m not satisfied until we get there. We still need people to get involved and help.” The biggest help has come from Tucsonans Cole and Jeannie Davis, who committed $6 million to help start the project and lure more funding. The Davises have gifted $10 million to continued on page 71 >>> www.BizTucson.com

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BizSPORTS

“

Athletics plays a vital role in the visibility of our campus and is a major part of the UA’s contributions to the life of our community. –

”

Ann Weaver Hart, President The University of Arizona

continued from page 68 the athletic program and facilities, including the Richard Jefferson Gymnasium. “Jeannie and I were so impressed with Sean Miller and his vision for where Arizona basketball was headed,” Cole said of their first meeting with the men’s basketball coach. “Now, four years later, we’ve seen the results of that vision and we’re excited to be supporting a program that can compete for championships. “It’s important for men’s basketball to be as competitive as possible for the overall health of the athletics department. Our hope is that by helping to strengthen our basketball programs, we can have a positive impact on all student-athletes at Arizona, which in turn, will help them not only have a great experience while in school, but will prepare them to become leaders once their playing days are over.” Gymnastics and volleyball teams also compete in McKale. Arizona quickly approached its Phase 1 goal through numerous donations, including several of at least $1 million. It was helped by the announcement that an anonymous donor would match donations up to $8 million. In helping to reach its goal, Arizona received $2.5 million from an anonymous donor, $1 million from the Donald Diamond family and $800,000 from former UA player George Rountree. “Athletics plays a vital role in the visibility of our campus and is a major part of the UA’s contributions to the life of our community,” UA President Ann Weaver Hart said. “I want to thank those who have come forward to support this project.” Arizona won’t stop until it gets there. “We’ve got a great development team and have done a great job of identifying prospects,” Byrne said. “We’re going to work hard to make this thing a reality.”

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BizSPORTS

Wildcat Hoops Lore Galore By Anthony Gimino

The 1997 national title. The Final Fours. The winning streaks. The Gumbys. Jason Terry sleeping in his uniform. Candygate. An assistant coach who played Tarzan in the movies. Bennett Davison riding on a luggage conveyor belt. Steve Rivera spans 100 years of basketball history at The University of Arizona in his updated book, “Tales from the Arizona Wildcats Locker Room,” and the emphasis is definitely on “tales.” Some people and stories you know. But it’s not likely that even the craziest of Arizona hoopheads know them all. Rivera’s book is a collection of program highlights and anecdotes, some a few pages long, others a few paragraphs. The book can be read in the chronological order presented or just as easily by skipping around to titles or eras that catch your eye. “People like it because it’s an easy read,” Rivera said. “You can find little tidbits about the people in the program and things you didn’t know that happened through the years. There’s so much that didn’t make the book, but it’s a good read when you’re taking a short trip or if you’re on the couch.” Rivera has covered Arizona basketball for more than two decades, mostly as the beat reporter for the now-defunct Tucson Citizen newspaper and currently for FoxSportsArizona.com. He used his firsthand knowledge of the program and original interviews to compile the stories for the book, which was first published in 2004. Then Sports Publishing, which has a series of “Tales from” books on college and professional teams, became interested. “I received a curious call from the publisher last spring that they had acquired the rights to the last book and 72 BizTucson

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wanted me to add some things from the last 10 years,” said Rivera, who also writes for BizTucson. “One problem was that they only wanted 2,000 to 3,000 words. ... I came up with some of my best stories since Lute retired.” Plenty has happened since 2004, including Arizona’s meltdown against Il-

“

You can find little tidbits about the people in the program and things you didn’t know that happened through the years. It’s a good read when you’re taking a short trip or if you’re on the couch.

”

– Steve Rivera, Author “Tales from the Arizona Wildcats Locker Room”

linois in a 2005 NCAA Tournament regional final, the uncertainty stemming from Olson’s medical leave and retirement, and the program’s roaring comeback under head coach Sean Miller. The Illinois game turned out to be Olson’s last good chance at tournament glory. The Wildcats lost 90-89 in overtime in Rosemont, Ill., after leading by 15 with 4:04 to go in regulation. Olson told Rivera he doesn’t dwell on the result but has wondered about some of the late no-calls before overtime. “The place was filled with 19,000 fans and in basketball, officials affect the game more than any other sport,” Olson said. “I just felt the officials thought the game was over and relaxed.” Olson also talked candidly about his contentious comeback press conference following his medical leave during the 2007-08 season, saying he wished he “had that hour back many times.” Rivera also wrote a book about Arizona’s 1996-97 national championship season and penned another historical collection in 2010 – “The University of Arizona Basketball Vault,” which is presented in a scrapbook format with reproduced items such as programs and ticket stubs. With Miller’s success on the court and in recruiting, Arizona basketball is producing more great moments. Sounds like Rivera might need to start working on another book. “I enjoyed doing it,” he said of writing “Tales.” “All the people I spoke to in updating the book were great to talk to again. And, boy, do people have stories to tell.” “Tales from the Arizona Wildcats Locker Room,” is available for $19.95 at Barnes & Noble. Copies autographed by Lute Olson and author Steve Rivera are available for purchase by emailing Steve.Rivera.95@gmail.com.

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BizRESEARCH

Dr. Fayez K. Ghishan

Director, UA Steele Childrenâ&#x20AC;&#x2122;s Research Center

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Brightest Minds Focus on Cures for Kids

PHOTO: STEVEN MECKLER

By Gabrielle Fimbres By David B. Pittman There could be no more noble cause – finding cures for childhood illnesses and easing the suffering of children. That is the mission of the University of Arizona Steele Children’s Research Center, fueled by the passion and determination of its director, Dr. Fayez K. Ghishan. “I had a big dream when I came to The University of Arizona 19 years ago,” said Ghishan, who is also physicianin-chief at The University of Arizona Medical Center – Diamond Children’s, head of the UA Department of Pediatrics and the Horace W. Steele Endowed Chair in Pediatric Research.

“My dream was to compete with schools like Vanderbilt and Duke and build a research center in Tucson where I could put together all the pediatric researchers who are interested in children’s health in one place so that the interaction will be across disciplines.” The four-story center – housed at the University of Arizona College of Medicine – is a place of discovery and inspiration. It’s where some of the brightest minds work in unison toward possible cures and better treatments for pediatric cancer, cystic fibrosis, type 1 diabetes, Inflammatory Bowel Disease and a host of other illnesses that prevent kids from being kids. continued on page 76 >>>

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BizRESEARCH continued from page 75

Fayez K. Ghishan, MD Dr. Fayez K. Ghishan has helped put The University of Arizona Steele Children’s Research Center on the international map. It’s fitting for this global scientist, who was raised in Jordan, started medical school in Turkey at age 16 and received pediatric training in London. Ghishan has been continually funded by the National Institutes of Health for more than 30 years, and is internationally recognized for research in pediatric gastroenterology. Ghishan, who joined the UA in 1995, is director of the UA Steele Center, physician-in-chief at The University of Arizona Medical Center-Diamond Children’s, head of the UA Department of Pediatrics and the Horace W. Steele Endowed Chair in Pediatric Research. He twice received the prestigious MERIT Award from the National Institutes of Health and was the recipient of the Shwachman Award presented for major, lifelong scientific and educational contributions to the field of pediatric gastroenterology, hepatology or nutrition in North America. This spring, he will be presented with the Horace W. Davenport Distinguished Lectureship Award by the Gastrointestinal & Liver Section of the American Physiological Society. Throughout his career, Ghishan has written the book on pediatric gastroenterology – authoring more than 400 publications.

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UA Steele Center took part in $5.4 million in sponsored research funding in fiscal year 2012-13. In his 19 years at UA, Ghishan – who is internationally recognized for his research in pediatric gastroenterology and nutrition – has recruited 87 faculty members to do research and care for patients. He’s expanded the resident training program. And he was the driving force behind Diamond Children’s, the state’s only academic children’s medical center, named for the family of Donald and Joan Diamond. “Our mission is really threefold – one is to do research through the Steele Center, one is to take care of patients in a state-of-the art facility and the third is to train the future physicians and scientists in this country,” Ghishan said. “We are moving in parallel, increasing the number of scientists, increasing the number of pediatricians. And without this community and its support, none of this would have happened.” During its history, the UA Steele Center received funding from philanthropic groups that include Father’s Day Council Tucson, Arizona Elks, Angel Charity for Children, Tee Up For Tots, People Acting Now Discover Answers – or PANDA – and generous Tucson families and organizations. The roots of the UA Steele Center reach back to the 1980s, with the Arizona Board of Regents approving the creation of a Children’s Research Center in 1986. Dr. Lynn Taussig was appointed its first director, an advisory board was formed and members of the Tucson community rallied to fund the center. In 1990, the Steele Foundation made a naming gift in honor of late Phoenix businessman Horace Steele. Construction started that same year Coming from Vanderbilt University, Ghishan took the UA Steele Center by storm in 1995, with big dreams and lofty goals. “The Steele Center existed as a building, an empty shop, but there was a lot of debt. I raised enough money to retire the debt on the building and I started putting equipment there. I convinced the Keck Foundation in Los Angeles to give us money, and that was the initial

gift I received – $1.1 million to equip the center.” Ghishan said when he arrived, researchers were “scattered about,” often housed with their counterparts in adult divisions.

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What advances science is two things – first, to do the basic science, and second, to take the basic science to bedside.

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– Dr. Fayez K. Ghishan Director, UA Steele Children’s Research Center

“I had this idea of a multi-disciplinary approach with everyone working together,” Ghishan said. “Understanding immune therapy in cancer will help in understanding immune therapy for type 1 diabetes or Crohn’s disease.” Today, the 100 or so scientists and physicians in the 14 divisions of pediatrics work together to find better treatments and deliver those solutions to patients, Ghishan said. “What advances science is two things – first, to do the basic science and second, to take the basic science to bedside,” he said. What is learned at the UA Steele Center is transferred to patients in the state-of-the-art Diamond Children’s, putting science to work. The UA is competing with major institutions – which have billions in endowments – to attract the top researchers and physicians. Not an easy task, but one that benefits from philanthropic organizations like Father’s Day Council Tucson. The group, which has raised $3.1 million for type 1 diabetes research since its inception, has the goal this year of completing funding for the $2 www.BizTucson.com

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million Father’s Day Council Tucson Endowed Chair for Type 1 Diabetes Research. The funding will allow Ghishan to bring in a nationally recognized diabetes researcher. When Ghishan started at UA, there was one pediatric endocrinologist and he was close to retiring. Today there are five caring for children, along with a dietician, social worker and other healthcare professionals, paid for in large part through Father’s Day Council funding. Father’s Day Council Tucson was founded in 1994 by Steve Rosenberg, publisher of BizTucson, and his wife Rebecca, along with inspiration from Steve’s father, Howard Rosenberg. The elder Rosenberg was instrumental in spreading Father’s Day Council fundraising events throughout the United States. (See story, page 81) Funding from Father’s Day Council Tucson, Angel Charity for Children and others has provided improved care for the approximately 700 children with type 1 diabetes in Southern Arizona, Ghishan said. Richard A. Schaefer, senior VP and branch director of RBC Wealth Management in Tucson, was a founding board member of Father’s Day Council Tucson, and chaired the fundraising Father of the Year Gala four times. He said the work of the UA Steele Center and Ghishan can be felt globally, and continued funding is critical. “We absolutely must have a worldclass medical facility in Tucson, especially one focused on our children and the children of Southern Arizona and beyond,” Schaefer said. “We must have leadership in pediatric medicine and Dr. Ghishan is providing that. We must continue to attract world-class leaders like Dr. Ghishan. “We must support this effort at the grass-roots community level. We must have organizations like Father’s Day Council and others to be willing to step up, raise money and give to the UA Steele Children’s Research Center so they can continue not only their great work, but continue to attract and retain the best doctors and researchers possible.” In the think-tank that is the UA Steele Center, researchers are studying the link between several autoimmune continued on page 79 >>>

Christy Harrison Senior Graduate Researcher

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Discovering Causes, Developing Cures By Gabrielle Fimbres Physicians and scientists at The University of Arizona Steele Children’s Research Center are working in unison to discover causes and develop cures for childhood illnesses. From type 1 diabetes to cancer and Inflammatory Bowel Disease, UA Steele Center researchers are involved in significant discoveries. Here is a sampling of current research.

Dr. Chetanbabu Patel

Dr. Fayez K. Ghishan

Dr. Emmanuel Katsanis

Vijayababu “Vijay” Marati Radhakrishnan

Hua Xu

Dr. Mary G. Gaspers

Dr. Katri V. Typpo

Dr. Michele M. Munkwitz

Dr. Brittany Shutes

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Type 1 diabetes Pediatric endocrinologist Dr. Chetanbabu Patel oversees TrialNet, a study taking place around the globe that involves children and adults with a genetic link to type 1 diabetes. Their blood is drawn to determine if they have antibodies that put them at risk for developing the disease. Blood samples of those with the positive screen are part of a global repository that could lead to early detection and an ability to delay the onset of the disease. UA Steele Center is also involved in Pathway to Prevention, which gives oral insulin to people with the antibodies. The study examines whether lower doses of insulin can delay the onset or decrease the risk of getting the disease. Pediatric cancer Dr. Emmanuel Katsanis, section chief of pediatric hematology, oncology and blood and marrow transplantation, and director of the UA’s Blood and Marrow Transplantation Program, is working on a pediatric cancer vaccine. Katsanis is the principle inventor of Chaperone Rich Cell Lysate – or CRCL – a vaccine developed from a patient’s own cancer cells that is predicted to prevent cancer recurrence. Inflammatory Bowel Disease Researchers have discovered that two proteins play a key role in Inflammatory Bowel Disease-related inflammation and bone mineral loss. Each year, more than 30,000 children are diagnosed with this painful gastrointestinal disorder. A common complication is loss of bone mineral density, making them more likely to develop osteopenia or osteoporosis later in life. Research was led by Dr. Fayez K. Ghishan, head of the UA Department of Pediatrics and director of the UA Steele Center; Pawel Kiela, associate professor, and Vijayababu “Vijay” Marati Radhakrishnan, assistant scientist. The findings increase understanding of bone loss and will advance care for patients. Dry eye disease Ghishan and researcher Hua Xu discovered that NHE8 – a sodium/hydrogen exchanger protein – plays a role in dry eye disease. They previously found that NHE8 is associated with mucosal protection in the intestinal tract and in male reproduction. Dry eye disease can cause discomfort, visual disturbance

and even loss of vision. Prior to the study, the cause of dry eye disease remained largely unknown. Researchers hope the knowledge will lead to new treatment strategies. Bloodstream infections Critical care pediatrician Dr. Mary G. Gaspers is taking part in a national collaborative effort of pediatric intensive care units focused on eliminating central line-associated blood stream infections, which can prolong hospitalization and complicate the course of care. Supplemental nutrition in respiratory failure When a child is hospitalized in critical condition, optimal delivery of nutritional support plays a vital role in the outcome. Unfortunately, no solid data exists regarding the best way to feed critically-ill children. Funded by a grant from the National Institutes of Health, critical care pediatrician Dr. Katri V. Typpo is investigating the best way to feed children during critical illness. Genetic epidemiology and immune response of flu Flu annually infects up to 20 percent of the population, leading to 200,000 hospitalizations and about 36,000 deaths. This study of life-threatening influenza in children, actively enrolling at more than 30 sites across the United States, evaluates how the patient’s immune response is associated with disease susceptibility, severity and outcome. Typpo serves as principal investigator at UA. Traumatic brain injury Pediatric critical care physician Dr. Michele M. Munkwitz and pediatric resident Dr. Brittany Shutes are studying whether hypertonic saline or mannitol is more effective in treating high intracranial pressure in pediatric traumatic brain injury. Sepsis prevalence, outcomes and therapy Pediatric sepsis is a major source of morbidity and mortality in pediatric intensive care units worldwide. As part of an international collaborative with more than 100 participating sites, this project’s primary objective is to determine the prevalence, outcomes and therapeutic variability of pediatric severe sepsis and septic shock. Typpo serves as principal investigator at UA. Source: The University of Arizona

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BizRESEARCH continued from page 77 disorders, all of which are on the rise. Among them – type 1 diabetes, celiac disease, Crohn’s disease – multiple sclerosis and asthma. “We are starting to scratch the surface and gain deeper understanding of why someone gets an autoimmune disease and why another person does not,” Ghishan said. UA scientists are learning more about tolerance in cells, as well as investigating the generation of beta cells that produce insulin. Ghishan is also launching the UA Steele Center in Phoenix to conduct translational research in type 1 diabetes through TrialNet. While Father’s Day Council designates funds for type 1 diabetes research, Angel Charity for Children has donated for research in cancer, genetics and type 1 diabetes. PANDA champions research for aerodigestive disorders, autoimmune disorders and traumatic brain injury. “Donations can provide the seed money needed to get bigger grants from the National Institutes of Health,” Ghishan said. “That buys graduate students to come here, faculty to come here to increase the economy of Tucson and improve the science.” The path to a cure is a long one, Ghishan warned. “Science moves slower than what the public needs it to be,” he said. “Remember President Nixon in the 1970s gave $5 billion to establish the National Cancer Institute, and he said he needed a cure for cancer within five years. It’s 50 years later and we are not much closer.” He believes a cure for type 1 diabetes will come sooner. “I truly believe we will see a cure if we continue to have resources. It is much simpler to understand type 1 diabetes compared to cancer. In the next 10, 15, 20 years, hopefully we will see a cure.” Looking back over his lifetime of work, Ghishan is proud to have made a difference – and to continue making a difference – in the health of children. “As a father and a grandfather, if I made a small advance in healthcare and propagated knowledge to young scientists and clinicians, I think that would be more than enough for me.”

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We absolutely must have a world-class medical facility in Tucson. We must continue to attract world-class leaders like Dr. Ghishan. – Richard A. Schaefer Founding Board Member Father’s Day Council Tucson

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Honor Thy Fathers: Gala raises $3.1 million to fight type 1 diabetes By Gabrielle Fimbres

in place to avoid complications with this very scary disease.” Honoring some of Tucson’s finest fathers – while raising Chavez joined the board at Steele after losing a dear friend money for an eventual cure for type 1 diabetes – has been the – Sara Courtney – to complications from type 1 diabetes in mission of Father’s Day Council Tucson for two decades. 2003. The nonprofit, which has raised $3.1 million for research, She is dedicated to supporting Steele and its director, Dr. celebrates its 20th anniversary with a slate of “Generation Fayez K. Ghishan, physician-in-chief at The University of Next” Father of the Year honorees for 2014 – Tucson dads Arizona Medical Center Diamond Children’s, department who make life better for their families and our community. head of pediatrics and the Horace W. Steele Endowed Chair The award honors men who have mastered the balancing in Pediatric Research. act of fatherhood, career and community service while rais“It’s important for us to continue to help Dr. Ghishan get ing funds for The University of Arizona Steele Children’s Retop-of-the-line researchers here so he can continue his mission search Center. of finding a cure,” Chavez said. “It’s a very special group of fathers this year,” said StephaVogel said Ghishan’s passion for helping children and faminie Chavez, director of marketing communications for Vanlies is contagious. “We are so lucky to have him, and these doctage West Credit Union, who is co-chairing the 2014 Father tors and researchers who are making our community a better of the Year Awards Gala with Rosi Vogel, campaign coordiplace to live.” nator for Jewish Federation of Southern Arizona. “They are the young business leaders of Tucson who are Father’s Day Council Tucson was founded in 1994 by Steve making a difference in Tucson today,” Chavez said. Rosenberg, publisher of BizTucson, with his wife Rebecca. The 2014 honorees are David G. Hutchens, Omar Mireles, This year’s event is dedicated to the memories of Steve’s faJames H. Moore, Jr., Capt. Joshua Palochak, Cody Ritchie ther, Howard Rosenberg, and Dave Sitton, a founding board and Neal Weitman. They will be celebrated June 13 at Loews member of Father’s Day Council Tucson and the event’s masVentana Canyon. ter of ceremonies for 19 years. Both died in 2013. The goal of the council is to raise $300,000 this year, comHoward Rosenberg served as the volunteer chair for Fapleting the $2 million needed to fund the Father’s Day Counther’s Day Council Los Angeles for more than 25 years. Afcil Tucson Endowed Chair for Type 1 Diabetes Research. ter Steve and his friends had great success with the inaugural It’s a lasting gift that will allow Steele to attract the best Tucson event in 1995, Howard had the vision of expanding and brightest researchers to UA in perpetuity, with the hope the event nationally. of conquering this devastating disease that impacts about 700 He presented his proposal to the Father’s Day Council in children in Southern Arizona. New York and to the American Diabetes Association, and in Among those children are the sons of the past two decades, the event – under Vogel and her husband, Benjamin Vogel. Howard’s leadership – has grown to 34 Jonathan, 17, was diagnosed at age 8 and markets across the United States. It has Daniel, now 14, was diagnosed when he generated more than $50 million in dowas 2. nations for diabetes research, care and Rosi Vogel’s connection to fundraiseducation. While donations from other 20TH ANNUAL ing efforts is very personal. Money raised events throughout the country benefit FATHER OF THE YEAR provides for improved treatment and ADA, funds raised by the Father’s Day AWARDS GALA therapies for her sons and other children Council Tucson stay local, benefitting PRESENTED BY FATHER’S DAY with the disease. research at Steele. COUNCIL TUCSON She has seen an increase in the numDana P. Verrill, executive director of Benefitting UA Steele Children’s ber of specialists that care for children the Father’s Day/Mother’s Day Council, Research Center with type 1 diabetes, including endocrisaid the Tucson event is among the best Friday, June 13, 5:30 p.m. nologists, a dietician, a counselor and a in the country. “The impact you are havsocial worker. ing locally might be greater than a large $175 per person “There is no break from the disease – city like Chicago. Loews Ventana Canyon it’s 24/7,” Vogel said. “The best thing “Everyone must be very proud of what FdcTucson.org or Laura Hopkins, that can happen is a cure. Until that day they have accomplished in 20 years.” hopkins@peds.arizona.edu comes, we must have the best therapies www.BizTucson.com

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2014 FATHER OF THE YEAR HONOREE

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David G. Hutchens

President & COO UNS Energy, Tucson Electric Power & UniSource Energy Services

Importance of fatherhood By Gabrielle Fimbres Whether it’s cheering at his daughters’ dance competitions or watching old reruns of “Magnum, P.I.” and “Murder, She Wrote,” David G. Hutchens’ favorite time is spent with family. “Those old shows are so corny but we love watching them together,” said Hutchens, president and COO of UNS Energy, Tucson Electric Power and UniSource Energy Services. In May Hutchens will step up to CEO. Hutchens, who joined TEP as an engineer nearly two decades ago, is a 2014 Father’s Day Council Tucson Father of the Year. “People in the community don’t always know how important fatherhood is to me because you don’t really talk about it that much when you are in business meetings,” he said. “My wife and daughters are extremely important to me. I strive to keep family first and foremost above everything else.” Hutchens and his wife of 25 years, Cathy, are parents to Danielle, 20, and Gabrielle, 17. Raising funds for type 1 diabetes research through Father’s Day Council Tucson is an important undertaking, he said. “You don’t know how prevalent this disease is and how devastating it can be. It can be so scary and life threatening.” His wife recently joined the Steele Children’s Research Center advisory board, and they are committed to supporting research for improved treatment and an eventual cure for type 1 diabetes and other illnesses that impact children. www.BizTucson.com

Hutchens came to Tucson from Minneapolis to attend The University of Arizona, and met his wife, a Tucson native. He received a bachelor’s degree in aerospace engineering. “I graduated, got commissioned in the U.S. Navy the same day and got married two weeks later.” He was in the Navy for five years, working on nuclear submarines. “Cathy was with me the whole time, and we travelled all around the U.S.” Hutchens, who also holds an MBA with an emphasis on finance, returned to Tucson and joined TEP in 1995. He said Tucson has been a great place to raise his family. “Tucson is a tight, close-knit community that still feels like a small town.” While the economy “took the wind out of our sails” in recent years, he sees progress, especially in the growing downtown, where his company has its headquarters. “It’s just starting to get that critical mass where you feel like this can be a very vibrant downtown, something you hope will attract people to come and live in Tucson,” he said. On the business front, Hutchens is excited about the future. “For our industry and TEP, it’s a new age. We are seeing a lot of new technology and we are seeing more people who are interested in sustainability and energy efficiency – using less electricity to get more of whatever they are trying to get, which is absolutely the right thing to do. There is a lot of change on the horizon and we stand at the ready to

deliver what our customers want from us in integrating all of those new technologies and sustainability efforts.” Giving back to the community is important to both Hutchens and TEP. “We have 2,000 employees throughout the state and about 1,300 here in Tucson who live and have their families in the community,” he said. “It is where we live, where we work, where we play and it’s important for a community organization like ours to give back. It helps us be a very strong part of the community that we live in.” TEP’s Community Action Team volunteers have donated more than half a million hours to Tucson and eastern Arizona causes in the past 20 years. “You see our folks helping out all throughout the community and it makes you feel good to be part of that,” Hutchens said. “I have passed that on to my kids. They got the volunteering bug.” In addition to serving on industry boards, Hutchens is involved with the Tucson Conquistadores, Salpointe Catholic High School, Tucson Regional Economic Opportunities, Southern Arizona Leadership Council and DM50. How does he balance commitment to family, career and community? “You have to force the balance. You have to say no sometimes. I make sure I focus on my wife and kids first. I still work hard, but my family is my hobby. When I have free time, I like to spend it with them.”

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From left – Emilia, Amy, Emma, Omar & Emerson with family pet Hampton

BizHONOR

Omar Mireles Executive VP HSL Properties

President HSL Asset Management

Most important thing in the world By Gabrielle Fimbres It’s what wakes him up in a cold sweat in the middle of the night – and what gets him up smiling in the morning. Fatherhood. “Being a father is a great privilege and an awesome responsibility,” said Omar Mireles, executive VP of HSL Properties and president of HSL Asset Management. “Every minute you spend with these kids is what we all live for. It’s the most important thing in the world. Every little thing I do, I question how it will affect my family.” Mireles is a 2014 Father’s Day Council Tucson Father of the Year. He and his wife, Amy, are parents of Emma, 6, Emerson, 4, and newborn daughter Emilia. “The single most important thing that enables me to try to be a good father is my super wife,” Mireles said. “She should be the one being celebrated. Amy is the one that coordinates the whole operation that is our family. She sacrificed a successful career in order to devote herself to our family. She is a wonderful mother and a loving wife, and she sets up a perfect environment for me to try my hand at fatherhood.” And what a job it is – shuttling kids to soccer and dance, weekend hikes with the family and lots of time spent playing. “My son and I love to play dinosaurs,” Mireles said. “We become the dinosaurs. I’m Tyrannosaurus rex. He’s Argentinosaurus.” Mireles feels fortunate to have strong father role models in his life. He spent www.BizTucson.com

his early childhood in Nogales, Son., and left home at the age of 10 to attend school in Tucson, living with his aunt and uncle, Czarina and Humberto Lopez, president of HSL Properties. Mireles developed a strong work ethic early on, helping in his father Francisco’s curio shop in Nogales, and cleaning hotel rooms and carpets in Yuma with his Uncle Mario. He attended St. Cyril of Alexandria School and Salpointe Catholic High School. He went on to Cornell University, where he received a bachelor’s degree in economics and housing, then became an investment banker in New York City. “It was a wonderful experience,” he said. But home was calling him. “Uncle Humberto had been knocking on my door, asking me to work for him,” he recalled. Mireles and his then girlfriend, Amy – a third generation Tucsonan – were marrying. “It made sense to come back to Tucson, and the stars aligned to come back home in 2003,” Mireles said. Lopez has served as a role model for Mireles on the job. “Uncle Humberto is all about hard work.” While the economy has been challenging, Mireles said the future looks promising. “We are very optimistic about what we see and what Tucson has in store for its future.” He said HSL has captured the highend, luxury rental housing market. “People are looking for a slew of amenities, and that is what we have to offer,”

he said. Mireles said it is important for business, government and the community to work together for the betterment of the city. “Everyone has Tucson’s best interest at heart,” Mireles said. “We must cooperate to make the economy and the city the vibrant community it can be and has been.” He serves on the boards at Salpointe, Tucson Regional Economic Opportunities, Tu Nidito Children and Family Services, Arizona Multihousing Association and Tucson Airport Authority. He is a member of the Tucson Conquistadores. “I have been lucky and blessed. It’s incumbent on us to give back and see how we can make our community a better place,” Mireles said. He is happy to raise funds for research for type 1 diabetes. “It’s a devastating disease, and it’s so hard on children and families. You look at these diseases and see how they affect children – the physical and mental trauma. We must help fund research for a cure.” He is humbled to be named a Father of the Year, and is thankful for the technology that allows him to be there when his children need him. “Technology is a double-edged sword. You can be wherever you need to be with your family – but the phone is always ringing, and the emails are always coming.” But being there is the best part. “It’s an exciting journey,” Mireles said. Biz Spring 2014 > > > BizTucson 85

From left – James, family pet Lady, Michael, James, Shelli & Jessica

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2014 FATHER OF THE YEAR HONOREE

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James H. Moore, Jr. President & CEO The University of Arizona Foundation

Great way to spend time together By Gabrielle Fimbres It’s the best time of the week for James H. Moore, Jr. Seafood Sunday – that lovely, lazy day when life isn’t too crazy and the family is together, perusing the seafood offerings at the local grocer. Son James, 16, might cut up sushi and make fresh sauces, or simmer a pot of miso soup. Father James grills the catch of the day. And the family spends the afternoon cooking, eating and laughing. “It’s a ritual for us – we all love to cook, with everybody in the house,” said Moore, president and CEO of The University of Arizona Foundation and a 2014 Father’s Day Council Tucson Father of the Year. “I love food. I love to eat food. I love to cook food and it’s a great way to spend time together as a family.” For Moore and his wife of 23 years, Shelli, the emphasis is on family. In addition to James, they are parents to Jessica, 14, and Michael, 12. Rounding out the family is rescue pup Lady. “They are really busy kids,” Moore said. “James is very active in band. He plays the trombone, and he is teaching himself to play bass guitar. He also runs track.” Jessica dances – and won the role of Clara in The Nutcracker. “To see her go from being a little mouse seven years ago to having the opportunity to be Clara was really fun,” Moore said. She is also in National Charity League and loves to paint. www.BizTucson.com

Michael plays trumpet, wrestles and plays football and baseball. All are avid readers and dedicated students. Moore feels fortunate to be there for his children. “My father was great. He was always very supportive, but he couldn’t always be there. I think a lot of professionals now – moms and dads – have the ability to be with our kids more.” Returning to Tucson eight years ago was a happy homecoming for Moore. As a child, he moved to Tucson in 1977 with his family, attending Fickett Middle and Palo Verde High schools. He went to Northwest Missouri State University on a football scholarship. Moore received a bachelor’s degree in marketing and went on to earn a master’s in management from Clarkson University in Potsdam, N.Y. Returning to the UA was a homecoming as well. He previously served as a fundraiser in the Eller College of Management, before moving to the University of Northern Colorado. “I love Tucson and having the opportunity to move back here and work here and raise our family here is a blessing,” Moore said. He said he is honored to raise funds for research for type 1 diabetes. He has seen the work of the Steele Children’s Research Center and its director, Dr. Fayez K. Ghishan. “For me to have the opportunity to work at a university where so many amazing doctors and researchers are

working on cures and treatments to improve the quality of life for children is very rewarding. We can’t do enough to make sure that people like Dr. Ghishan and others at the university have the resources they need to invest in our future – and that’s our kids.” During Moore’s tenure, the UA fundraising program has averaged more than $180 million a year in gifts and commitments. Investing in higher education is critical for the success of the community, Moore said. “If we lose the ability to educate competent, capable citizens through quality, publicly funded universities, you can’t even begin to think about how to develop a strong economy,” said Moore, who was the first in his family to attend college. “Education changes your station in life.” Moore is active in the community, serving as a member of Southern Arizona Leadership Council and the Tucson Conquistadores. He is on the board of the Tucson Airport Authority, BBVA Compass Bank and Habitat for Humanity, among others. But the best commitment of all? Fatherhood. “I think that more men are comfortable in that role of being a dad, not just being the disciplinary figure but someone who can be a shoulder for their kid to lean on, and to be a partner with your spouse in raising the family,” Moore said. “I’m very blessed.” Biz Spring 2014 > > > BizTucson 87

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2014 FATHER OF THE YEAR HONOREE

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Capt. Joshua Palochak U.S. Air Force Senior Mission Crew Commander

Leaving an imprint By Gabrielle Fimbres When Joshua Palochak was 16, he watched in horror as the Twin Towers tumbled to the ground on Sept. 11, 2001. It was then that he dedicated himself to protecting our nation. “At that time my life didn’t have a lot of vector. I remember watching the news and I realized I had never set a standard for myself to achieve anything.” The next day Palochak doubled his workload at school so he could graduate as a junior. On Sept. 11, 2002 – exactly a year after the tragic events – Palochak became an airman. It is with that dedication and passion that Palochak has approached all that is important in his life – family, service and education. Palochak, a captain and senior mission crew commander with the 41st Electronic Combat Squadron at DavisMonthan Air Force Base, is the 2014 Father’s Day Council Tucson Military Father of the Year. He was nominated by his supervisor, Lt. Col. Daniel Hendrix. “I nominated Capt. Palochak for two key traits – selfless dedication that yields service above and beyond the amazing standard of excellence we find common in our Air Force, and genuine humility over his accomplishments. Josh would serve his country and his family the same way whether we recognized him or not, and that is endearing, encouraging and inspiring.” Palochak, who was raised by a single mom who is retired Air Force, called the www.BizTucson.com

award humbling. “As a father I question whether I am doing this right,” Palochak said. “It’s constantly burdening me, so this award was very humbling. Finding a way to provide the best foundation for my children is always on my mind and motivates me to make sure they don’t have to go without the foundational support I missed out on without having a father.” Palochak and his wife, Ashley, are parents to sons Gavin, 3 and Logan, 2. Also in their hearts are two girls who they fostered for more than a year before the sisters recently were placed in their forever home with another family. Before welcoming the girls, the Palochaks discussed fostering but decided it was not the right time. “It was a Saturday and I had just returned from Afghanistan and my wife and I had a conversation and decided that it wasn’t the right option for us because our two boys are so young.” The next day at church, the entire service was about foster care. “I took that as a sign,” Palochak said. The couple made the call about becoming foster parents the following day. “It was quite honestly one of the best experiences of my life,” he said. “These girls showed up on our doorstep with literally a trash bag full of clothes. That was all they had to their name.” They had fallen far behind in school. When Palochak was deployed, he would help the girls with homework over Skype. “They would hold up their homework and I would check it on the video screen.”

By the time the girls moved to their permanent home, they were near the top of their class. Palochak, who said the family will continue fostering, said balancing fatherhood and other commitments is not simple. “My wife is my hero,” he said. “She’s the one that keeps it all together.” Ashley cared for their sons during his first deployment and for all four children during his second. Palochak also makes his own education a priority. He is completing a doctorate from the University of Phoenix. How does he do it all? “Very little sleep. It’s all about prioritizing your time. And when I am at home, it’s all about family. You are juggling so many balls you have to know when to drop a few and when to pick them up,” he said. One ball that does not get dropped is the family’s passion for Christmas lights. It started when Palochak bought a device that synchronizes lights with music. “I found the most elaborate hobby there is. We are now up to 50,000 to 60,000 lights.” Neighbors bring by donations for Toys for Tots, and last year he held a toy drive at Park Place Mall, collecting 4,400 toys. Palochak said he and his wife are leaving their imprint on their children. “We are looking to create a lasting legacy built on selfless service to others. Everything God has blessed us with, we need to bless others.”

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Cody Ritchie

President Crest Insurance Group

Home in time to say good night By Gabrielle Fimbres Leading a major insurance agency requires Cody Ritchie to spend a good chunk of his time in Phoenix. But no matter how many times he makes the drive up north during the week, he never fails to come home to Tucson every night. “I have always been there with my wife to say good night and put my children to bed,” said Ritchie, president of Crest Insurance Group and a 2014 Father’s Day Council Tucson Father of the Year. “Parenting is our biggest priority. I love my family more than I love my work, and those who know me know I love my work. My office is close to my daughters’ school so I can be there if they need me. Outside my office are two cubicles with my daughters’ names, so they can do their homework.” Ritchie and his wife, Patsy, met while working at Mueller & Associates, which later became Crest. She was a single mom with two boys, and they became family. The two married in 2000, with Patsy’s sons serving as best men for Ritchie, and the couple soon added two daughters to the crew. Today, Parker is 24, and in the Air National Guard. Andrew, 22, serves in the U.S. Army. Julia, 12, and Kristin, 10, attend St. Joseph Catholic School, where Ritchie coaches the girls’ basketball team. Andrew and his wife, Amanda, are parents to Aiden, 1. “I have been very blessed,” Ritchie said. “We have a ton of fun together.” Ritchie was born in Canada, and the family moved to Wyoming when he was 11. His father was in the energy induswww.BizTucson.com

try, and they moved frequently. “I was in three high schools in four years,” he recalled. He attended the University of Wyoming in Laramie, walking on to the football team and later migrating to rugby. He was nearly done with his business degree when funds ran out. He moved to Tucson in 1987 to live with his grandparents and complete his last two classes. “I was only going to live here for six months and move to Denver.” But a funny thing happened in Tucson. He could wear shorts in November and he soon fell in love with our city. He got his master’s in sports management at The University of Arizona, working as a development intern in the athletic department. He also worked with Mike Feder at the Tucson Toros. After college, Ritchie went to work for the county, and then signed on with Bob Mueller at Mueller & Associates in 1993, selling insurance. One satisfied client at Airborne Express became a good friend and soon Ritchie had accounts with the company throughout the United States. Ritchie made partner, and in 2003, Mueller and his group sold the business to Compass Bank. Ritchie later shared in running the company, which was acquired by BBVA, a multinational bank based in Spain, and the firm continued to grow. Ritchie approached the bank about buying back the insurance agency over several years, and in 2010, the company was reopened as Crest, with Ritchie as president. It has expanded into Phoe-

nix, with 75 employees statewide, and is licensed in 50 states. “We have doubled in size and revenue,” Ritchie said. He is dedicated to making Crest a great place to work, with extra time off for employees at holidays. The company will occasionally close early on a Friday afternoon so staff can go bowling, to the movies or another fun activity. “Our employees work very hard, and they deserve it,” he said. Crest and Ritchie have been active in the local community, providing support for UA, San Miguel High School, Tucson Metro Chamber, First Impressions, United Way of Tucson and Southern Arizona, Tucson Hispanic Chamber, Meet Me at Maynards, plus youth sports and other organizations. “My motto is if we do well, we’ll do good.” Ritchie is also a member of the Tucson Conquistadores and the Rio Nuevo board, and he recently joined Southern Arizona Leadership Council. He and his family are passionate supporters of the UA and its athletic department. “We are so appreciative for what The UA has given to us and what they have given to Tucson.” Helping to raise funds for type 1 diabetes research through Father’s Day Council Tucson is important to Ritchie, whose mother-in-law has the disease. “Anytime you can make a situation better – especially an illness in a child – it’s extremely important,” he said. “I am honored to help.”

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PHOTO: BRENT G. MATHIS

2014 FATHER OF THE YEAR HONOREE

From left â&#x20AC;&#x201C; Virkine, family pet Bella, Grant, Neal, Julia & Daniella 92 BizTucson

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BizHONOR

Neal Weitman

GM Royal Automotive Group

Always on the go By Gabrielle Fimbres Fatherhood makes Neal Weitman a better man. “Being a parent challenges you to be a better person,” said Weitman, GM of Royal Automotive Group. “The kids are always watching.” Weitman, a 2014 Father’s Day Council Tucson Father of the Year, is the second devoted Weitman father to receive the honor. His dad, Paul Weitman, was in the first group of dads honored by the organization in 1995. “I think it’s a neat legacy – and a great honor,” Neal Weitman said. The family has a long history in the Tucson automotive business. When Neal was a child, the family lived in Florida, where his dad worked as a manager at a Buick dealership. When Zimmerman Buick in Tucson became available for sale, a group of dealers in the southeast had an opportunity to buy it – but none wanted to move west. The dealers loaned Paul Weitman the money to buy it, and – as Weitman lore goes – Paul called his wife, Betty, and said, “The deal is done – we are moving to Tulsa, Arizona.” Paul denies it. Today, the Royal Automotive Group has grown to include Lexus of Tucson, Jaguar, Land Rover, Kia, Mini, Buick, GMC and Cadillac, plus Certified PreOwned and the body shop. Neal graduated from Salpointe Catholic High School and went on to play football at the University of San Diego. He returned to Tucson 19 years ago and sold cars at Royal, working his way www.BizTucson.com

up to manager and now GM. He and his wife, Virkine, married in 1999. They have three children – Grant, 12, Daniella, 10, and Julia, 7. The family is always on the go – with soccer, basketball and gymnastics, as well as athletic events at The University of Arizona, vacations and plenty of good old-fashioned fun. “We have always been really involved with our children,” Weitman said. “We love to play.” Weitman said fatherhood has changed in that very busy dads are able to be more involved. “You go to a play or some other event at school and all of the dads are there. I don’t think that was the case 30 years ago. You don’t want to hover, and you need to let kids be disappointed once in a while, but it is important to be there.” He said technology helps, but is also a curse. “In some ways it makes life easy, but I check my phone all night long.” Blessed with healthy children, Weitman said it is important to raise money for type 1 diabetes and other childhood illnesses. “Diabetes is a lifelong issue. The Steele Children’s Research Center has really grown the research. To be able to contribute to that research is very meaningful.” Weitman is active in the community and is president of the Tucson Conquistadores. He has been involved in a number of charities through Royal. “We are a big small town, and if you

can be involved in helping the community, it’s what you should do.” Royal receives 50 to 60 donation requests a month, many from customers. “We try to give to as many as possible. We really believe in making our community a better place to live.” Weitman said Tucson has much to offer. “I’d like to see us grow a little more and improve our infrastructure,” he said. “We don’t want to be known as the community that loses things. We want to attract businesses and visitors and events that benefit all of us. We have room to grow.” He said the automotive business is rebounding from the economic downturn. “Business is good for us, and we have been able to expand. The luxury market is growing and manufacturers are adapting to new Environmental Protection Agency regulations. Cars are now more fuel efficient and smaller.” With about 375 employees, Royal strives to be an excellent place to work and do business, Weitman said. “Belly to belly, eye to eye, we want our customer service to be the best. And when someone comes to work here, we feel a responsibility to make it work well for everyone.” He said his dad has been a good role model as a father and a businessman. Weitman is passing on the parenting legacy to his children. “Parenting isn’t easy – but nothing worthwhile is.”

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Carol Barnes Regentsâ&#x20AC;&#x2122; Professor and Evelyn F. McKnight Endowed Chair for Learning and Memory in Aging, The University of Arizona Carol Barnes and colleagues gain insight into change that occurs in the aging brain by studying alterations in

PHOTO: CHRIS MOONEY

neurons highlighted in this background image.

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Boost Your Brain Power “Choose long-lived parents,” Barnes said with a laugh. While you cannot choose your genes, they play a significant role in brain health. Choose your food wisely. “It’s clear that there is something

about a

Mediterranean diet that can facilitate your brain health.” Eat healthy oils, fish, nuts, dark chocolate, plenty of fruits and vegetables and drink red wine. Exercise regularly. Stay socially connected. Even more important than exercise, social interactions are vital in brain health. Be a lifelong learner. The more educated you are and the more learning you take part in, the lower your risk of developing Alzheimer’s disease and other brain dysfunction.

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BizRESEARCH

UA’s Brainiac Barnes Unlocking Secrets of Normal Aging Brain By Gabrielle Fimbres Chances are good your brain will not be ravaged by dementia or Alzheimer’s disease in old age. But you will forget things – like where you parked your car or what you went downstairs to retrieve. It’s all part of a normal aging brain. Unlocking the secrets of the normal aging brain at The University of Arizona is research giant Carol Barnes, Ph.D., who is recognized throughout the world for her lifelong body of work. Barnes, who has conducted research at the UA for nearly a quarter of a century, is a Regents’ Professor in the departments of psychology, neurology and neuroscience. She is the prestigious Evelyn F. McKnight Endowed Chair for Learning and Memory in Aging and is associate director of the UA’s BIO5 Institute, which mobilizes collaboration among top researchers to find solutions to humanity’s most pressing health and environmental challenges. Barnes, who has brought more than $30 million in research funding to the UA, recently received the Society for Neuroscience’s Ralph W. Gerard Prize in Neuroscience. The award – the highest recognition conferred by the society – honors an outstanding scientist who has made significant contributions to

neuroscience. She’s the ultimate brainiac, passionate about helping us keep our brains healthy and pliable as we age. “Dr. Barnes is a pioneer in the field of systems neuroscience, and her work has made fundamental contributions to understanding the adaptive nature of the aging brain,” said Larry Swanson, president of the Society for Neuroscience. Barnes was among the first neuroscientists to investigate how normal aging affects the brain circuitry underlying cognitive processes, such as memory. She believes that scientists cannot fully understand age-associated brain disorders – such as Alzheimer’s – until they understand normal brain aging. She and her colleagues at the UA have uncovered significant changes that take place in the aging brain. And it all started with a phone call from her mom in 1972. Barnes, a native of Northern California, was attending graduate school at Carleton University in Ottawa, Canada. “I got a call from my mother who was worried about my grandfather,” she recalled. “He was starting to get disoricontinued on page 96 >>> Spring 2014 > > > BizTucson 95

continued from page 95 ented on the long walks he regularly took. She asked, ‘what is this?’ because she knew I was interested in the brain.” Barnes scoured the library shelves for the latest information on the aging brain and memory. “You get old, you get senile. That is all I found in the textbooks. That is when I really, really started to get excited. It was clear nobody really knew.” That phone call launched Barnes in her field, and she studied throughout the world with some of the greatest minds in the neurosciences. She received the first post-doctoral fellowship in neuroscience from the National Institutes of Health’s National Institute on Aging. Barnes also caught the attention of the McKnight Brain Research Foundation. She received $5 million to fund the Evelyn F. McKnight Brain Institute at the UA, which is one of four such institutes across the United States. Investigators work to uncover the neurobiological changes in the brain that cause memory to decline as we age, and to understand what characterizes “normal” from pathological aging, so

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that methods can be developed to help optimize brain and mental health function throughout life. “It’s really exciting in my lifetime to have seen the field of aging develop the way it has,” Barnes said. “From the beginning I knew that the idea that your brain was shriveling and you were losing all these cells and everybody was going to dement had to be wrong, but that’s how it was in the textbooks.” She is helping to rewrite textbooks and change the understanding of the brain. She is hoping the data she and her colleagues have gathered will aid in developing strategies to help aging brains stay as healthy as possible – whether through nutrition and social interaction or medication. Barnes – who said she becomes “officially old” at 65 this year – has been in on the ground floor of groundbreaking study of how information and memory are stored in the brain. She studies the behavior of aging primates and rats. “Older monkeys have memory disorders just like older humans. Old rats have spatial memory problems and so do old humans, but it’s

not Alzheimer’s,” she said. She said memories that are stored long ago in humans and animals remain pretty stable in normal brains, while recently stored memories can be more difficult to retrieve. Lapses in working memory – going to the kitchen to retrieve an item and then forgetting what you are there for – can start as early as the 30s and 40s. Lapses in spatial memory – forgetting where you parked your car or getting turned around on a walk that you take every day – have been of particular interest to Barnes. Weakened brain cell connections can be the cause. “It’s like trying to find your way around Tucson with a map of Phoenix in your head,” she said. To better understand the brain and its memory pathways, Barnes and her colleagues – including her ex-husband, Bruce McNaughton – have developed the technology to conduct large-scale recordings of brain activity, single cell imaging methods and whole brain imaging. “This was fantasy only 10 years ago to think we could look at every single

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neuron in the brain that was engaged in an experience,” Barnes said. “We now know it’s possible.” She said the grand challenge is to improve the methods of study of how behavioral experiences are recorded in the brain. “We don’t know all the pathways that are affected in a given disease. It’s becoming possible to target therapies to particular cell types, cell groups, cell pathways. The more specifically we know what pathways to target, the better the therapies.” Barnes expects to coordinate state efforts to apply for grants this spring to take part in a proposed $100 million research initiative launched by President Barack Obama aimed at revolutionizing the understanding of the human brain and accelerating the discovery of treatments for the more than 100 million people with 1,000 different brain diseases worldwide. “This is something we have high hopes to get ready for,” Barnes said of participation in the BRAIN Initiative – Brain Research through Advancing Innovative Neurotechnologies.

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BizRESEARCH

“

Dr. Barnes is a pioneer in the field of systems neuroscience, and her work has made fundamental contributions to understanding the adaptive nature of the aging brain. –

”

Larry Swanson, President Society for Neuroscience

“It will be one of the largest cooperative endeavors achieved across the government and private institutes.” She said her interest and knowledge in the normal aging brain make her a good fit for the massive project. Additionally, the UA is poised to be a major catalyst with its cross-disciplinary strengths in science, medicine, engineering, optics, imaging, psychology

and informatics – all important components in neuroscience research and applications, she said. “We have to know what a normal old brain is before you can understand how disease impacts it, so we will have a great start on baseline conditions of older organisms onto which we can then superimpose what’s happening in the disease process,” she said. She hopes her life’s work will inspire other researchers to study the aging brain. “I want in my last push to be able to make more discoveries for optimizing cognition,” she said. “The more people I can get interested in the aging brain the better.” She hopes a cure for Alzheimer’s will someday be found, and that her work will impact discovery. “Do I think it is five years down the road? No, but we need to support our scientists. We need to keep our eyes and ears open and we must keep more and more basic science ideas in the pipeline. None of us know where the answer is going to come from.”

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SPECIAL REPORT 2014

THE REGION’S BUSINESS MAGAZINE

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BizEDUCATION

Pathway to Success Pima JTED Fills Vocational Skills Void By Larry Copenhaver It was in November 2006 when voters approved Proposition 400, a measure to plunk down a new taxpayer-funded education authority with boundaries essentially congruent to the borders of Pima County. The main idea was to fill the vacuum created when vocational education was deleted from high school curriculums as traditional schools placed an increasingly greater emphasis on college programs. The authority – Pima County Joint Technological Education District, or Pima JTED – exclusively serves some 14,000 high school students in 13 school districts. Member schools get financial support and access to a myriad of Pima JTED vocational programs – from agricultural science to healthcare foundations, graphic communications, mining technologies and more. The programs are popular among students, said 19-year-old Nathan Aho. “I was in the Fire Service Program, the EMT program, and they invited me back to help with the second-year EMT program as a student instructor,” Aho said. “Otherwise, I’m a wildland firefighter.” Because of the Pima JTED experience, Aho is on his way to a fulfilling career, said Ann Powers, a Pima JTED representative. “Certified firefighters can earn $50,000 or more annually,” she said. Aho said he’s got a ways to go before he makes that much, but he figures his schooling and hard work laid the foundation for a great job. “I’m not at the hotshot level,” he said. “Those are the top-notch guys, and I would never put myself at that level yet. But I live in Sonoita, and I work for the Sonoita-Elgin Fire Department.” He commutes from his Sonoita 102 BizTucson

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home, some 60 or 70 miles, to the main JTED campus near North Shannon and West River Roads where he exercises his student instructor duties, he said. “JTED is a wonderful program,” Aho said. “It gives high school students a chance to figure out what they want to do as a career and gives them a little push into that career. Honestly, the JTED instructors are great, and they really care about the students. They really want you to pass.” Aho, who attended Cienega High School, heard about the program through his counselor and brochures, which he said was good fortunate for him. “I would definitely not be as skilled as I am right now, and I wouldn’t be as far along as I am right now, job-wise.” Pima JTED’s Aviation Technology program through Pima Community College’s Aviation Center also gets a lot of attention from high school students. The instruction is designed to earn students certification as airframe and power plant mechanics, said Greg D’Anna, Pima JTED’s public relations director.

Programs offered by Pima JTED Agricultural science Automotive technology Aviation technology Nursing assistant/caregiver Cosmetology Culinary arts Early childhood education Fire service Graphic communications Healthcare foundations Law, public safety and security Medical assistant Mining technology Multimedia technology Precision manufacturing Project SEARCH

“We don’t focus on the training of pilots …but this program is not a bad pathway if someone wants to become a pilot,” he said. “Students master the workings of an aircraft, so if they want to be a pilot they have the background. Certainly we have students whose ultimate goal is to become a recreational pilot flying their personal planes during their leisure.” A major JTED success story in the aviation program is Victoria Codona, who said she didn’t have a plan for life, but when she learned about the aviation program she latched onto it because it was exactly what she wanted to do, D’Anna said. She recently completed her airframe and power plant certifications and was hired by Bombardier. At such jobs, students can expect to earn between $35,000 and $40,000 annually. Just like many vocations that do not require a college degree, aircraft mechanics are in demand, D’Anna said. “Bombardier is hiring,” he said. “They are telling us they need aircraft mechanics with airframe and power plant certifications. Pima JTED students are able to train on real aircraft, including a bevy of single- and twin-engine jobs, as well as a donated Boeing 727, which I have learned from Pima is the gold standard to train aircraft mechanics on.” Then there is the medical assistant program, headed by Carla Lopez, a medical professional with more than two decades dealing with patients. She has high standards and expects the same from her students, D’Anna said. “These students in the medical assistant program can make $30,000 a year right out of high school.” he said. From the first cohort of 20 students, all were placed in externships, and of continued on page 104 >>> www.BizTucson.com

PHOTOS: COURTESY JTED

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BizEDUCATION continued from page 102 those, 13 were offered jobs, he said. “We were told that JTED students are in demand because they are the besttrained medical assistant students the profession has seen in a long time,’’ D’Anna said. “They are professional, they show up to work on time, they are well-trained, and they have the skills to do the job.” One cannot talk about Pima JTED without discussing the construction industry, especially at Catalina High School where sheet metal classes are offered, and at Canyon del Oro High, where students are building homes from shipping containers, D’Anna said. “JTED had to get licenses as a mobile home builder to allow that,” D’Anna said. It takes three containers to build a modular home. The client lives in Oro Valley, and he ran into a zoning issue, so the students had to go before the Oro Valley zoning commission to plead their case and they won.” One person especially proud of the success of Pima JTED is the district’s superintendent, Alan L. Storm. The mission is to deliver premier career and technical education in partnership

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with business, industry and community stakeholders, he said. “Research conducted at Harvard University, Arizona State University’s Morrison Institute, and the National Research Center for Career and Technical Education proves that in addition to helping students enter a career, Pima JTED programs reflect higher graduation rates, lower dropout rates, better grades, attendance and test results than the general high school population, he said. Research also illustrates that students in the Pima JTED are more likely to succeed in post-secondary education and experience greater employment opportunities with excellent earning potential. The nation’s economy benefits, too. The average age of U.S. skilled workers is about 56 years old, and hundreds of those retire every day. Employers need trained workers, and they need workers with employability skills such as showing up to work on time and demonstrating the ability to interact professionally with co-workers. There has been a huge nationwide

push for every kid to go to college, yet only 20 to 25 percent of those who enter high school emerge with a college diploma in three years for community colleges or six years for four-year programs. Meanwhile, research shows that a majority of the jobs in this country don’t require the four-year-college degree. “We do feel that some type of secondary education is vital,” D’Anna said. College is not discouraged, but rather the truth about being a skilled worker is explored. “We believe that students need to follow their passion in life,” D’Anna said. “It’s good to enjoy a job and look forward to going to work each day.” It’s important to note that Pima JTED students are not on their own, even after they complete high school, said Aaron Ball, Pima JTED’s assistant superintendent. Pima Community College has created a specific course pathway for graduating Pima JTED students, and the advice from the manufacturing companies and Pima JTED helps build on the skills the students learned in high school. Biz

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PHOTO: KRIS HANNING

BizSERVICE

From left – Susan Mulholland, Tom Dunn, Mark Riggi, Rich Bright and Bill Ford

Making a Difference

ABA Volunteers Give Back to Community By Steve Rivera Darlene Bol received a nice 57th birthday present this year – a refurbished living space at Miracle Square. “I absolutely love it – everything about it,” said Bol, who has lived at the independent senior living apartment complex on North Oracle Road since 2005. She loves the new southwestern colors, up-to-date features and a larger bathroom that accommodates her scooter. Bol can thank the local building and business community for making it available to her and others at Miracle Square. For 19 years, the Arizona Builders’ Alliance Volunteer Day has made dreams come true for many in need. No task is too large, no dream is too small. “The volunteers made a spectacular difference to our property,” said Tom Cowdry, executive director of Miracle Square, which serves low-income seniors. “Anytime we improve the property it enhances their pride. It really tells our residents that our community is concerned about them.” In late November more than 200 volunteers – with more than 75 businesses involved – gathered to help clean, rebuild, refurbish, paint and create. A new ramada, handrails, roof, carpet and cabinetry were all part of the remodeling. 106 BizTucson

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“Every time we’ve done a project it seems like it’s a larger project,” said Susan Mulholland, volunteer chair for ABA’s Volunteer Day. “Besides having the talented people to do it, we also have the resources. We have wonderful people who participate and love giving back to the community.” Despite its name, Volunteer Day is months in the making. It starts about 10 months in advance when about 35 to 50 applications are taken from local nonprofits wanting work done on their properties or help with their programs. ABA wishes there were more organizations asking for help, Mulholland said. “We want people to know about the program,” she said. “We know a lot of nonprofits need help, but they are not stepping up. They don’t know what we are capable of doing.” Bol, who is affected with multiple sclerosis, knows exactly what the good folks are capable of. ABA officials transformed her living quarters into a more modern, accommodating space. “They did a great job,” Bol said. “They were very professional.” What was her reaction when it was all done? “I just thought: Wow, wow, wow,” she said with a big smile. “I liked it.” It’s the reaction Mulholland and ABA hopes to get. For nearly two decades,

the group has gathered professionals – painters, contractors, business people – to do everything they can for others to live better, more comfortably. ABA has helped numerous nonprofits including New Beginnings, Gospel Rescue Mission and La Familia. “We call (volunteers) and not once has anyone said, ‘No, I can’t,’ ” Mulholland said. “They know this is a great thing to participate in.” And that’s whether they are experts in building or not. “The people know what needs to get done so they do it,” she said. “It’s who we are.” For many it’s a labor of love. “Everyone who helps feels good about it,” Mulholland said. “People who don’t typically do this kind of work (labor) are here helping. It’s a real good community effort. They believe in this and believe in one another.” Some volunteers donated money and gift cards to the residents. Cowdry said residents continue to drop by the office to say how much of a difference the work made to the property. “They feel like they are now in a public park with the new ramada. It’s just fantastic,” Cowdry said. “The volunteers really responded with some sincere heartfelt kindness to the residents.” Biz www.BizTucson.com

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BizDOWNTOWN

$280 Million for Downtown Infrastructure

PHOTOS: CHRIS MOONEY

By David B. Pittman

www.BizTucson.com

New business development downtown “has hit a frenetic pace,” according to Downtown Tucson Partnership CEO Michael Keith. The completion of new restaurants and clubs, opening of new retail shops and building of a new boutique hotel and luxury apartments are just part of the picture. The greater impact comes from construction of the modern streetcar and an estimated $280 million in infrastructure investments made by Cox Communications, local utilities and other businesses. Keith said when planning for streetcar construction was underway, city officials and others backing downtown development realized that many infrastructure improvements could be performed in tandem with trenching work needed for the streetcar. Some infrastructure work did piggy-back streetcar construction. Other recent improvements were performed independently. Infrastructure improvements were made by Tucson Electric Power, Southwest Gas, Century Link, Tucson Water, Pima County Wastewater, Cox Communications and other smaller fiber-optic firms. “These companies not only took advantage of the opportunity to improve existing services – but more importantly – to expand capacity for future development,” Keith said. Keith expects about $100 million in new downtown business construction to be completed in 2014 and estimates that number to grow to as much as $1 billion over the next decade. He said those projections were based on expectations that under-utilized downtown properties would be redeveloped to higher zoning levels. Pamela A. Crim, director of Cox Business Sales in Southern Arizona, said the company installed 3.25 miles of upgraded fiber optics – roughly the length of 57 football fields – to provide “a new state-of-the-art, high-speed communications highway” to downtown occupants. “Businesses locating downtown and their customers are very high-tech,” Crim said. “They don’t want any buffering or slow speeds. They want the best technology available – and that is exactly what they are getting.” Cox began the planning and permitting process for the downtown infrastructure improvements at the beginning of 2013. The company broke ground downtown last summer and completed its infrastructure project in February of this year. Crim said the process – which required a great deal of excavation and trenching work – went incredibly smoothly, largely because of the cooperation provided by the City of Tucson. continued on page 110 >>> Spring 2014 > > > BizTucson 109

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PHOTOS: CHRIS MOONEY

BizDOWNTOWN continued from page 109 “Very early in the process, City Manager Richard Miranda assigned a representative from his office, Andy Squire, as a liaison to work with our construction team to ensure that if we needed guidance we had access to the proper people,” Crim said. For his part, Squire, an economic development specialist, credited the work of Ernie Duarte, director of the city planning and development services department, and Jonathan Mabry, the city’s historic preservation officer, for the cooperative effort from city government that helped guarantee the success of Cox’s infrastructure efforts downtown. Miranda expressed appreciation to Cox for its commitment to Tucson. “Pam (Crim) and the Cox business team have been terrific partners,” he said. “Tucson is better positioned to attract technologydriven businesses if we have reliable, scalable telecommunications infrastructure in place – and Cox is helping us expand our business-ready footprint.” Southwest Gas and Tucson Electric Power also completed substantial downtown infrastructure upgrades recently. “Southwest Gas’s work in the downtown area was not done for purely economic development reasons,” said Libby Howell, administrator of corporate communications for the gas utility. “We needed to relocate our facilities out of the way of the streetcar route. Whenever we are required to do relocation work in any part of town because of a street project, we take the opportunity to upgrade our facilities to current standards and to analyze our system to ensure that our new system design will deliver appropriate capacity to current customers, as well as accommodate some future growth. For example, when we relocated our main along Granada, our system analysis showed us that slightly larger pipe was warranted, due to growing demand on that line,” Howell said. TEP completed about $20 million in downtown improvements, including connections to the modern streetcar line, relocation of a dozen power poles to create needed space for the streetcar and new lines and transformers for a new high-voltage line from a west-side substation to a downtown substation, said Joseph Barrios, a TEP spokesman. Lisa Lovallo is Southern Arizona market VP for Cox and a board member and past chair of Downtown Tucson Partnership. She estimated that private business investment over the past five or six years in downtown Tucson is in the neighborhood of $300 million. “Along with Cox, dozens of businesses have invested more than $280 million in downtown Tucson,” she said. “The immediate and long-term impacts of these investments will position Tucson for stronger job growth and a more prosperous future.”

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BizCOMMERCIAL

Eye-Opening Tour of Downtown By Mary Minor Davis

Downtown Tucson is enjoying the largest revitalization in its history – with more than $360 million in private investment and $570 million in public investment injected into the central business district. Office space occupancy is up, and more than 1,000 new residents have made downtown their home in the last 12 months alone. As part of this year’s 23rd annual CCIM Real Estate Forecast event, organizers arranged a walking tour of downtown Tucson so people could see for themselves the work and the vision that is making Tucson a modern cosmopolitan city. Michael Keith, CEO of the Downtown Tucson Partnership, led the tour. “Part of the plan in moving the CCIM Forecast event downtown was to get back in the thick of things and show people where the money is,” said Terry Lavery, associate broker at Tucson Realty & Trust and marketing co-chair for the CCIM event. “It adds credibility to the forecast when you can see what is taking place on the ground.” Keith said, “Nationally, urban centers are changing dramatically – driven by ‘move-down’ baby boomers and millennials looking to move into urban areas where they can live, work and play without relying on the automobile. They want livable, walkable communities.” Millennials have changed the way business is done. Today’s technology allows virtual offices anywhere and 112 BizTucson

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shared spaces that create the “co-working movement” – such as Connect, located in the Rialto Building, and Beta on Congress Street. These common work environments are fast becoming the new normal. Entrepreneurs work in an open environment, share resources and even collaborate.

“

The cities belong to the young. They’ll shape what cities become. That’s our future.

”

Michael Keith CEO Downtown Tucson Partnership –

“The workplace has been completely changed,” he said. “Once you start there, it follows that amenities, lifestyles and transportation needs are going to change.” Stanton Shafer, principal and COO for Holualoa Companies, which owns the Pioneer Building, said that during the recession the building saw 38 per-

cent occupancy. In the last 18 months, occupancy has grown to 60 percent, with tenants moving or expanding from the suburbs, mixed with new business entering the market. These companies have brought the younger tech-based industries to the central business district – and to accommodate their needs, Holualoa installed bike lockers and storage units as well as shower facilities. “How we’ve done business in the past is almost obsolete,” Shafer said, adding that meeting employees’ lifestyle needs has to be considered when meeting their employment needs. “The cities belong to the young,” Keith added. “They’ll shape what cities become. That’s our future.” At the other end of the spectrum, empty nesters are relocating to urban settings, sharing a desire to live in a more dense area where they are closer to arts and cultural events, dining options and other amenities that reduce their dependency on the automobile. Keith said that because the needs of the two largest driving markets are so different, it presents a lot of opportunity for dining, retail, housing and other options for development – and that is seen in the types of mixed-use development taking shape. From student housing to luxury apartments, highend restaurants and affordable eateries, downtown has seen 160 new businesses open in the past 60 months, and there remain another 60 lots available for development. continued on page 114 >>> www.BizTucson.com

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BizCOMMERCIAL continued from page 112 Recently Keith leased an apartment in 1 E. Broadway, a new project still under construction. This project is the new normal for downtown, he said – mixed-use development that incorporates residential, office, retail, and in some cases, parking space in one location. Standing on his balcony which overlooks Congress Street and the city to the north and west, Keith points to sites that are either under development or proposed, including: • The Bourn project right behind 1 E. Broadway to the west, 44 luxury apartments with firstfloor retail, commercial office space • Old Pueblo Parking Garage, one of five locations being considered for a market • Scott & Broadway, now known as the “club district” because of upscale nightclubs attracting well-dressed clientele • The county-owned lot on Sixth Avenue between Congress Street and Broadway, currently zoned for 30 stories, also planned for mixed-use residential, office and retail In addition to these projects, there are an estimated 1,400 student housing units planned, including the recently completed Cadence Building with 456 apartments. Other projects include a Marriott boutique hotel with 139 rooms and parking. It will connect guests to The Hub, Saint House Rum Bar and other establishments that have opened along Congress Street. The newest kid to join the block will be nationally renowned Chris Bianco with his latest pizzeria. His Phoenix restaurant has received rave reviews from food critics and he’s been featured in the national and international media. “This is a big deal,” Keith said. “People will line up to get in. This will be a game changer for downtown.” Connecting it all is the modern streetcar, scheduled to go into operation this year. “The modern continued on page 116 >>>

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PHOTOS: CHRIS MOONEY

“

If we infill intelligently and incorporate aspects of new urbanism, we’re going to be very successful. – Michael Keith

CEO Downtown Tucson Partnership

”

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continued from page 114 streetcar will be an important element that will add to the strength of downtown by connecting it to The University of Arizona campus, The University of Arizona Medical Center and the areas west of the freeway, adding to the walkable nature of downtown,” said Shafer. One of the biggest projects soon to get underway is the Ronstadt Transit Center. A request for qualifications for a consultant to redesign the four-acre site was issued in early March, although various constituents have their own ideas on what a redesigned transit center will ultimately look like. A request for proposal is expected this summer, “Transit riders want to see improved amenities – including upgraded restrooms, an information and ticket center and a café,” Keith said. “The community would like to see an integration of other transit modes, including pedi cabs, shared bike rentals, short-term auto rental and other services that will create a new type of transit hub. Others want to see more housing and retail with programmable open space.” Keith said each of these ideas actually strengthens the other and all support the overall vision for a livable, walkable community. “This is an important project for Tucson,” Keith said. “How we take this center will ultimately decide what kind of city we want to be? Do we want to grow from a small city to a mid-size city that can compete with those cities already way ahead of us” such as Portland, Austin and Dallas? “This is our time,” Keith said. “Never in my 30 years have I seen true collaboration with the city, the county, Rio Nuevo, Downtown Partnership and the private sector all sitting at the table collaborating on a shared vision. If we infill intelligently and incorporate aspects of new urbanism, we’re going to be very successful.” CCIM’s Lavery said the tour was very well received, and people were “amazed” at the level of economic activity taking place. “It’s really incredible when you have the chance to see it all taking place together and hear the vision. We’ll definitely do this again next year – and as long as things continue to develop downtown.”

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BizCOMMERCIAL 2013 CCIM Forecast Winners Industrial Use Peter Douglas Cushman & Wakefield I PICOR Vacancy rate: 2013 Forecast – 10.8 percent 2013 Actual – 11 percent 2014 Forecast – 9.9 percent Residential Land Use Permits Thrac Paulette Vast Real Estate Solutions Building permits: 2013 Forecast – 3,656 2013 Actual – 3,759 2014 Forecast – 3,900 Finance Teresa Nowak BMO Private Bank 10-Year Treasury constant maturity rate 2013 Forecast – 2.5 percent 2013 Actual – 3.04 percent 2014 Forecast – 3.45 percent Multi Family Allan Mendelsberg Cushman & Wakefield I PICOR Vacancy rate: 2013 Forecast: 9.21 percent 2013 Actual: 9.41 percent 2014 Forecast: 9.75 percent Office Use John G. Yarborough Romano Real Estate Corporation Vacancy rate: 2013 Forecast – 12 percent 2013 Actual – 12.90 percent 2014 Forecast – 12.90 percent Retail Use Dave Hammack Volk Company Vacancy rate: 2013 Forecast – 7.85 percent 2013 Actual – 7.10 percent 2014 Forecast – 7.05 percent Tucson Legends John and Helen Murphey David and George Mehl Photos Courtesy CCIM

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Best of last 5 years By Mary Minor Davis The air of optimism was palpable as realtors, developers and commercial investment professionals gathered along with local officials to partake in the 23rd annual CCIM Forecast. Organizers were excited to share some good news in the industry forecast for the first time in six years – and the audience of nearly 300 guests was eager to hear it. There is “a sense in the Tucson market that we can see a light at the end of the tunnel and we don’t think it’s a train,” according to 2014 CCIM Chapter President James P. Robertson, Jr. and Chapter VP and Market Forecast Chair Brandon Rodgers in their opening remarks. CCIM stands for certified commercial investment member, a designation received after completing the national CCIM curriculum. Overall, four of the six sectors reported good or very good changes, making this event the “best of the past five,” said Terry Lavery, marketing-co chair for the event. This competition brings together local experts in the commercial real estate industry. Forecasts are prepared for vacancy rates in retail, office, industrial and apartments, plus year-end building

permits for land, year-end interest rates in finance and average price-per-square-foot predictions in appraisal. CoStar – the industry’s leading provider of commercial real estate information, marketing and analytic services – provides the metrics by which forecasters are measured for all but multi family, which uses other measuring resources. Presenters gather data and conduct extensive research within their area of expertise, then stand among their peers to make predictions. Proceeds of the forecast event support CCIM educational programs and scholarships as well as local philanthropic activities that align with the organization’s mission. Panelists join with each sector winner to make predictions of their own to compete for the winning spot. Two years ago planners also began inviting appraisers to provide a “neutral party to balance the information,” including per-square-foot values and to verify the forecasts, Lavery said. Those closest to the mark earn the winning honor of reporting the year in review in their category and leading next year’s competing panel. continued on page 120 >>>

Photo Courtesy CCIM

Photos Courtesy Murphey Family

The Ritz-Carlton, Dove Mountain

CCIM Legend Awards By Mary Minor Davis The recipients of the 4th annual Legend Awards represent a unique continuum of the development that has been instrumental in shaping Tucson’s growth from the 1930s through today. The Legend Award is presented as part of the Southern Arizona CCIM Chapter’s annual market forecast program. It was started by George Larsen of Larsen Baker, and Jim Marian of Chapman Lindsey Commercial Real Estate in 2011. This year’s recipients represent the first honorees selected by an independent panel, made up of past Legend Award recipients. Tucson Legacy of John and Helen Murphey The Murpheys are recognized as the “most significant contributors to Tucson’s early growth, identity and prosperity,” according to Marian. They built many landmarks, Tucson including Broadway Village, which was the first shopping center in Arizona, the BlenmanElm neighborhood and the Hacienda del Sol Girl’s School. Their most recognized project, however, was Tucson’s first masterplanned community, a 7,000-acre project that included Catalina Foothills Estates, St. Phillips www.BizTucson.com

Plaza and St. Phillips in the Hills Episcopal Church. Working with Josias Joesler, a Swiss architect, the Murpheys sought to introduce European-style buildings to the Old Pueblo. “They left us with a remarkable legacy of architectural treasures,” Marian said. Christine Murphey, the Murphey’s granddaughter, accepted the award on their behalf. She shared stories of her grandparents – including John’s declaration upon seeing Helen on the footsteps of Old Main that “that was the woman he was going to marry.” Christine said that while the public legacy her grandparents left is incredible, “the most important legacy is what they left to me. They taught me to always be kind, to work hard and to show everyone respect. I learned so much, and I was so fortunate to have them in my life for a long time.” George and David Mehl, Cottonwood Properties The Mehl brothers came to Tucson in the 1960s to play tennis for The University of Arizona, and together formed Cottonwood Properties in 1975. By 1980 Cottonwood had built more than 1,000 new apartments and a number of shopping centers in the Tucson area. They had also purchased and rezoned a number of land parcels for smaller home subdivisions and apartments. In 1981 Cottonwood learned that the Murphey Trust was considering the sale of a 790-acre parcel off of Skyline Drive. The rezoning became one of the most widely controversial zonings in Pima County history, and the development was not without continued contro-

versy and challenges – including a recession and the contractor going bankrupt, which David said made that project “awfully difficult.” Today, La Paloma Country Club, The Westin La Paloma Resort & Spa and the surrounding housing community stand as one of Tucson’s premier areas, and the resort serves visitors from around the world. George, his wife and three daughters died in a private plane crash in 1991, leaving David to continue the company’s legacy. In the 1990s, David sold or developed more than 3,000 lots in Rita Ranch. In 1996 he purchased the land for what is now known as Dove Mountain, developing The Highlands retirement community by Lennar, the Gallery Golf Club, the Canyon Pass estate homesites and other residential development. David developed the Dove Mountain community, including The Ritz-Carlton, Dove Mountain, the Golf Club at Dove Mountain and The Residences at The Ritz-Carlton, Dove Mountain. This master-planned destination resort community opened in 2009. He helped the Tucson Conquistadores attract the Accenture Match Play Golf Championship and put the Tucson region on the world’s professional golf map. Biz

David &

ehl

George M

continued from page 118 Industrial land use – “We are the survivors of six of the hardest years in real estate that I can remember,” said Peter Douglas of Cushman & Wakefield I PICOR. The 2013 winner in the industrial use category, Douglas predicted a 10.80 percent vacancy rate. The actual was 11 percent. “We have been dragging along the bottom for five or six years but the wreck may almost be over. I think we’re going from OK to good in terms of market conditions.” He added that in the industrial markets, five consecutive quarters of absorption show signs of recovery, with the absorption generally spread through the market. Residential land use permits – Thrac Paulette of Vast Real Estate Solutions won the 2013 residential land use with a forecast of 3,656 building permits. The actual was 3,759 for single-family detached units, single-family attached units and multi-family units. Paulette noted that 84 of the transactions in the past year totaled $148 million, and two transactions totaled over $10 million. He also noted a trend that local, private builders were focusing on small groups of lots, indicating they see a lot of value in property yet also caution in the market. A strong focus area for new housing appears to be in the northwest. Finance – Teresa Nowak of BMO Private Bank won for her

prediction of 2.5 percent 10-year Treasury Constant Maturity rates, which ended the year at 3.04 percent. Nowak’s comprehensive look at the financial picture for real estate reported that though 21 percent of the market remains underwater, “2013 was a year the defied expectations” and she predicts 2014 to be a “break out year – finally.” Among the indicators are “the Fed’s telegraphed intentions of stepping off the stage this year – which may help the 10year treasury yield migrate its way to a fair market value,” although she added this is a moving target for many reasons. While she noted the economy is improving, there is still room to grow. Because of the housing bust, first-time home buyers have not yet contributed to any sort of recovery. Part of this is because of tougher lending requirements. Finally, long-term unemployment has continued to slow the recovery. Multi-family vacancy rate – The winning prediction was

9.21 percent, made by Allan Mendelsberg of Cushman & Wakefield I PICOR. The actual 2013 rate was 9.41percent. He said the market remained relatively flat for the year, with some increases in the construction of new units attributed primarily to the surge in student housing in the downtown area. Supply-versus-demand questions on whether or not the market has “too much” student housing will continue to be a concern in 2014, according to Mendelsberg and members of the panel. “We’re not overbuilt on this yet,” said Art Wadlund of Hendricks-Berkadia, who predicts a 9.50 percent vacancy rate for 2014. “But there is a finite amount of students who can spend $1,000 a month for shared living space – and parents who are willing to spend that kind of money.” continued on page 121 >>> 120 BizTucson

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BizCOMMERCIAL

The focus is on providing an environment to inspire creativity.

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– John G. Yarborough Romano Real Estate Corporation

continued from page 120

Office use vacancy rate – John G. Yarborough of Romano Real Estate Corporation won for his office use vacancy rate prediction of 12.00. The actual was 12.90 for 2013. He said the expectation that the office market would follow the housing market did not prove true. Although consumer confidence is higher and tenants are not waiting to sign longer term leases, there has not been a noticeable change in rates or occupancy. “Over the past couple of years I have tried to figure out why the rate of absorption is so slow, and have gone through many ideas,” he said. “Initially I blamed empty sublease space as the main culprit as landlords were competing with their own tenants to attract renters.” As the market remained flat, Yarborough said he had to look deeper and concluded “the face of the office market is changing and the key culprits to a fast recovery in lease rates and occupancy levels are related to changes in how business is being conducted.” For example, tenants are downsizing their offices due to changes in business culture, especially with larger tenants (more than 5,000 square feet). “Firms are moving away from a lot of private offices and exchanging them for a more open work environment with larger common areas. The focus is on providing an environment to inspire creativity – thus communal work space has trended towards smaller office needs, going from 250 square feet 10 years ago to about 195 square feet today.” Retail use – The forecast for retail use was won by Dave Hammack of Volk Company, with a vacancy prediction of 7.85 percent. The actual rate was 7.10 percent, down from 8.2 percent of 2012. Hammack said 2013 continued at a very healthy rate – with large leases on vacant space being signed for a combined 135,000 square feet and no major tenant vacancies. Ground and pad activity remained robust with tenants including CVS, Dollar General, Walgreens, Quick Trip, Starbucks and others adding new stores to the market. Mattress stores such as Bedmart, R & S Mattress and Mattress Firm saw expansion, as did medical providers including FastMed, Northwest Medical Center and Urgent Care Extra. Rental rates vary, with end caps and other high visibility commanding higher rents because of short supply.

Conference organizers were pleased not only with the attendance, but with the positive numbers in four of the six sectors. “There’s 60 to 70 years of combined experience represented by these speakers,” Lavery said. “For these people to be cautiously optimistic sends a good message.”

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Project: Marana Marketplace Shopping Center – Phase II Location: Southwest corner of Orange Grove and Thornydale roads Owner: Marana Marketplace Partners/Larsen Baker Contractor: Division II Construction Architect: Architectural Design Group Broker: Larsen Baker Completion Date: May 2014 Contruction Cost: Estimated $6 million Project Description: A 280,000-square-foot community shopping center with tenants that include Sprouts, PetSmart and Staples. New additions are Conn’s HomePlus and Guitar Center.

1010 N. Finance Center Drive Project: Location: 1010 N. Finance Center Drive BP 1010 Investors Owner: Contractor: TBD Architect: Seaver Franks Architects – Landscape Design Cushman & Wakefield | PICOR Broker: Completion Date: Spring 2014 Contruction Cost: Not disclosed Project Description: Newly acquired two-story, 48,673-square-foot office building slated for site and interior renovations in 2014. Appropriate as corporate office location.

Project:

El Rio Congress Street Redevelopment Location: 839 W. Congress St. Owner: El Rio Health Center Contractor: BFL Construction Co. Architect: BWS Architects Broker: N/A Completion Date: Fall 2014 Contruction Cost: Estimated $10 million-plus Project Description: Construction of a two-story, 54,514-squarefoot state-of-the-art medical facility designed and built using LEED Silver guidelines set by the U.S. Green Building Council.

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Project: Tucson Subaru Dealership Location: 4901 N. Oracle Road Owner: DiChristofano Real Estate Group Contractor: Concord General Contracting Architect: Acorn Associates Architecture Broker: N/A Completion Date: December 2013 Contruction Cost: Estimated $4.95 million Project Description: A full-service auto dealership offering service, parts, car wash, detailing, customer lounge, kids play area, coffee bar and internet cafĂŠ.

The Campus at Tucson International Airport Project: Location: 6730 S. Tucson Blvd. HSL Properties Owner: Contractor: N/A Architect: N/A Broker: CBRE Completion Date: N/A Contruction Cost: N/A Project Description: HSL is currently making improvements to the property with plans to reposition and bring new life to the project and the Tucson market. A multi-use site serviced by its own on-site central utility core. True campus environment that can cater to a wide variety of user types.

Mister Car Wash Corporate Headquarters Project: Location: 222 E. Fifth St. Owner: Michael R. Wattis Contractor: W.E. Oâ&#x20AC;&#x2122;Neil Construction Company Architect: Rob Paulus Architects Ltd. CBRE Broker: Completion Date: June 2014 Contruction Cost: Not disclosed Project Description: A 25,350-square-foot redevelopment project in the downtown area.

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Project: Canopy Building Location: 5834 N. Oracle Road Owner: Dr. Sharad Pandhi Contractor: DL Withers Architect: Mark Harris Broker: Vast Real Estate Solutions Completion Date: First quarter 2014 Contruction Cost: Not disclosed Project Description: Inspired by the shade canopy of the mesquite tree, this building is unique in both design and its minimal environmental impact and will meet the LEED Gold standards of the U.S. Green Building Council.

Project: Handmaker Kalmanovitz Elder Care Center Location: 2221 N. Rosemont Blvd. Handmaker Jewish Services for the Aging Owner: Contractor: W.E. Oâ&#x20AC;&#x2122;Neil Construction Company Architect: CDG Architects N/A Broker: Completion Date: August 2014 Contruction Cost: $3.8 million Project Description: Construction of a 24,000-square-foot, twostory building to provide enhanced memory care services for Handmaker residents, as well as post-hospital recovery care.

Project:

Green Valley Hospital Location: 4455 S. I-19 Frontage Road Owner: McDowell Enterprises Contractor: Oâ&#x20AC;&#x2122;Leary Construction Architect: Swaim Associates Broker: N/A Completion Date: March 2015 Contruction Cost: $3 million-plus Project Description: A three-level, 50 bed acute-care hospital with all private rooms. Services include an emergency department with helipad, lab and imaging capabilities operating rooms, 44 in-patient beds, and six ICU beds.

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Project: Downtown Tucson Project Location: Congress Street and Scott Avenue Owner: BP Post Developers Contractor: TBD Architect: Rob Paulus Architects Broker: Bourn Advisory Services Completion Date: 2015 Contruction Cost: Undisclosed Project Description: An urban oasis with upper-floor residential units and lower-floor commercial space.

Project: Sam Hughes Court Location: Sixth Street and Campbell Avenue Town West Realty Owner: Contractor: Town West Design Development Architect: Town West Design Development Town West Realty Broker: Completion Date: August 2012 Contruction Cost: $2.3 million Project Description: A 9,652-square-foot, seven-unit apartment complex consisting of 20 bedrooms and 20 baths, financed by Bank of the West.

Project: Wilmot Plaza Location: Broadway Boulevard and Wilmot Road Owner: BP Wilmot Plaza Contractor: TBD Architect: TBD Broker: Bourn Advisory Services and Schloss Castle Advisors Completion Date: 2015 Contruction Cost: $15 million Project Description: This is a redevelopment of the existing 115,000-square-foot TJ Maxx shopping center. New tenants will include fashion, service and restaurants.

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Project: Salvation Army Hospitality House Location: 1002 N. Main Ave. Owner: The Salvation Army Contractor: Lloyd Construction Architect: Swaim Associates Completion Date: December 2014 Contruction Cost: $5.8 million Project Description: The shelter will provide emergency and transitional housing to those in need, offering life-skills guidance, transportation, medical assistance and employment services.

Project: Plaza Palomino Location: 2930 N. Swan Road WCCP Plaza Palomino Owner: Contractor: Barker Morrissey Contracting Architect: Seaver Franks Architects West Commercial Broker: Completion Date: July 2013 Contruction Cost: $4.5 million Project Description: Complete exterior renovations of existing shopping center, including landscaping, pavers, new decks and stairs.

Project: Herbert Residential Location: 202 E. 12th St. HP Armory Park Owner: Contractor: BHS Builders Architect: Eglin + Bresler Architects Peach Properties HM Broker: Completion Date: Oct. 11, 2013 Contruction Cost: Not disclosed Project Description: Herbert Residential provides the best of downtown with striking studio and one-bedroom apartments in Armory Park.

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Project: Douglas Medical Complex Expansion Location: Douglas Owner: Copper Queen Community Hospital Contractor: Diversified Design and Construction Architect: DLR Group Completion Date: Fall 2014 Contruction Cost: Estimate $3 million Project Description: This expansion will provide an additional 8,000 square feet of space dedicated to a quick-care facility, expanded laboratory services and diagnostics, plus professional spaces for visiting specialists.

{b2b}

{business-to-business marketing made simple}

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PHOTO: AMY HASKELL

BizCOMMERCIAL

From left standing – Barbi Reuter, Sally Bach, Cindy Dhuey, Linda McNulty, Jeannie Nguyen, Nannon Roosa, Gabriel Gomez, Sandra Barton, Loretta Peto and Jane McCollum. From left seated – Chris Young and Beverly Weissenborn.

TucsonCREW

Sees Brighter Future By Sheryl Kornman Tucson CREW is part of a 9,000-member nationwide nonyears, even a modest increase in business is something to celprofit whose aim is to help women in commercial real estate ebrate.” succeed and advance their business careers. Tucson CREW President Jeannie Nguyen is a VP of NaNow in its 12th year, local members include commercial tional Bank of Arizona and a commercial estate banker. She real estate brokers, bankers, appraisers, lawyers, consultants, said the group meets monthly and members network, share engineers and property managers. information and celebrate their successes. The organization Tucson CREW board member Debbie Heslop, associalso presents awards annually to outstanding industry leaders. ate broker at Volk Company, reports Today’s members represent all facets that the commercial outlook for 2014 of commercial development from due locally is “already off to a good start. diligence to construction to property Our members are reporting an uptick management, Nguyen said. Although in their business activity and are genermembership dipped during the ecoally feeling optimistic about the coming nomic downturn, it is now at 70. There year. While most of our members still are 18 new members, including the orfeel the effects of the recession, business ganization’s first man, Gabriel Gomez, prospects are looking up as consumers business development officer at Busiand business-to-business clients return ness Development Finance Corporato the market. tion. Men are welcome to join. “No one would call this a robust reThroughout the year, CREW mem– Debbie Heslop covery,” she said, though “after the flat bers take part in high-profile business Associate Broker line we experienced over the last several continued on page 134 >>> Volk Company

“

Our members are reporting an uptick in their business activity and are generally feeling optimistic about the coming year.

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continued from page 133 events as speakers, and also tour emerging commercial real estate opportunities, such as The University of Arizona area. The group is beginning a mentoring program and is working on succession planning to groom the next generation of leadership. Also, Tucson CREW will host its first golf tournament in May. Members build lasting relationships. Jane McCollum, GM of the Marshall Foundation, first worked with Sally Bach when she was at Fina Companies during construction of a retail building at Main Gate Square. When Bach opened her own company, G-2 Contracting, the Marshall Foundation hired her firm to complete several tenant improvements, including a complex adaptive use project to accommodate the relocation of Posner’s Art Shop, a 100-yearold local business. Other tenant improvements included refurbishing the original wood floors in the 1930s Geronimo Hotel and rebuilding the tongue-and-groove porch on a 1900s house. Tucson CREW board members continue to represent a variety of real estate-related business entities including Kuhn Young Law Firm, Title Security Agency of Arizona, Alliance Bank of Arizona, Marshall Foundation and Lewis Roca Rothgerber. Here is Heslop’s summary of the commercial real estate market as it ended last year, and a look at how commercial real estate brokers see their prospects for this year and beyond. Retail Sector – The retail year-end vacancy rate ended up at 7.1 percent, a decrease from the previous year’s vacancy rate of 8.2 percent. The retail sector is the healthiest of all the commercial sectors in large part because there was ongoing demand and very little speculative development. The retail inventory of vacant space was because of failing businesses, downsized stores, major retailers consolidating, closing or pulling out of this market. New retailers emerged to use up this vacated space and new concepts appeared. Retail brokers are projecting further decreases in the vacancy rate by year end as more and more of the vacant space gets used up. continued on page 135 >>>

Tucson CREW 2013 Award Recipients Economic Impact Amber Smith, Metropolitan Pima Alliance Career Advancement for Women Nannon Roosa, Eller College of Management Member-To-Member Tricia Hooper, First American Title Entrepreneurial Spirit Jan Cervelli, University of Arizona President’s Award Jeannie Nguyen, National Bank of Arizona 134 BizTucson

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BizCOMMERCIAL continued from page 134 Industrial Sector – The industrial year-end vacancy ended at 11 percent, a decrease from the previous year’s vacancy rate of 11.9 percent. Peter Douglas of Picor Commercial Real Estate did a thorough analysis of the industrial market at the recent CCIM Annual Market Forecast in February. His analysis showed how the industrial sector has experienced five consecutive quarters of positive net absorption. While the smaller industrial tenant niche is active, there is a scarcity of prospects for the larger industrial facilities. Bringing more jobs to Tucson would help fill these larger facilities. Heslop said, “hopefully our city/county officials and our economic development people are hearing this message.” Industrial brokers are projecting further decreases to the industrial vacancy rate by year end. Office Sector – The office year-end vacancy ended up at 12.9 percent, an increase from the previous year’s vacancy rate of 12.2 percent. John Yarborough of Romano Real Estate provided a broad view of the changing office market at the CCIM Annual Market Forecast. His analysis looked at the way office workers and their work environments have changed over the last several years because of increased technology, flexibility on the part of employers to allow home office workers and novel ideas like “hoteling” to reduce the space need to house workers in individual private offices. The net effect of these changes in the workplace is a decreased need for square footage. Also, some traditional office users have migrated to flex industrial space, further eroding the demand for first-class office space. Office brokers are projecting a flat to modest decrease in the office vacancy rate by year end.

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TUCSON CREW GOLF TOURNAMENT Friday, May 9 1 p.m. shotgun start Forty Niner Golf & Country Club 12000 E. Tanque Verde Road www.tucsoncrew.org

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John P. Lewis Honoree

Photo: Amy Haskell

Photo: BalfourWalker.com

BizHONORS

Gary Clark Honoree

Lewis & Clark Win Good Scout Awards By Tara Kirkpatrick If there is one common link between John P. Lewis and Gary Clark – two well-respected professionals in the Tucson community – it’s the Boy Scouts of America and how the venerable organization shaped these two men into the leaders they are today. Lewis, president of Commerce Bank of Arizona, and Gary Clark, VP of the Southern Arizona Division of Southwest Gas Corporation, are the recipients of the 2014 Good Scout Awards, presented at a luncheon by the construction industry, the proceeds of which will support the activities of more than 7,000 Scouts regionally. “John Lewis and Gary Clark exemplify what Scouts can achieve in their careers,” said Tom Kittle, GM of Kittle Design and Construction and chairman of the award selection committee. “For John and Gary, business has always been a way to help not only customers, but also our community. These Eagle Scouts have never forgotten their commitment to be outstanding individuals and citizens.” 136 BizTucson

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John P. Lewis Born and raised in Tucson, John P. Lewis joined the Scouts in the third grade, when a local representative began recruiting at a PTA meeting at University Heights Elementary School. “It was an opportunity the school made possible,” Lewis recalled. “Otherwise, I don’t know that I would have been introduced into Scouting. But what I did find was the regularity of the meetings, getting to know other boys who had common desires to get involved in Scouting, and the discipline that comes with the organization.” Lewis moved through the different levels, remembering many actionpacked, challenging summers at Camp Lawton atop Mount Lemmon. He would go on to earn his Eagle Scout Award in 1960 at age 14. “I think what I learned from my time in the Boy Scouts as a young man was the importance of family, faith and a strong work ethic. The Boy Scouts practiced all of those disciplines. I think a lot of it carried over into my behavior

at home and in the classroom. I never gave my parents any trouble. I was too busy being busy.” Scouting experience had a lifelong impact on Lewis. On May 2 Lewis will receive the 2014 Good Scouts Award at the annual fundraising luncheon presented by the construction industry. From University Heights Lewis went on to Mansfeld Junior High and Tucson High, then graduated from The University of Arizona. Lewis attended the University of Washington’s Pacific Coast Graduate Banking School, an intensive three-year program which prepares bankers for senior levels of management. When he applied for a job at the Southern Arizona Bank & Trust Company, the president offered him one as a messenger. “It was a very humbling experience – but I tackled that job as if it was going to be the only job I was ever going to have. It was a beginning, because it allowed me to walk in the shoes of the tellers, loan officers and as they say, ‘on up the corporate ladder.’ ” www.BizTucson.com

“

What I learned from my time in the Boy Scouts as a young man was the importance of family, faith and a strong work ethic.

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John P. Lewis, President of Southern Arizona Operations, Commerce Bank of Arizona –

From Southern Arizona Bank & Trust, which would eventually become First Interstate Bank of Arizona, then Wells Fargo Bank, Lewis left to start Southern Arizona Community Bank in 1997, serving as president until 2010 when his bank merged with Bank of Tucson. He stayed on as vice chairman to ensure a smooth transition in the merger and then retired in April 2012. Lewis worked for the American Red Cross’ Service to the Armed Forces division for nine months until the banking community summoned once again. The owners of Commerce Bank of Arizona, which specializes in small business banking, appointed Lewis as their new president of Southern Arizona operations last October. Lewis’ proudest professional achievement was being named in 2008 to the Inaugural Presidential Advisory Committee of the FDIC, a panel of 13

bank presidents chosen from over 800 applicants to advise and strategize on the country’s recession and its impact on the financial industry. The meetings every quarter were in Washington D.C. at FDIC headquarters. “It was the pinnacle of my banking career,” he said. “I honestly can say the Boy Scouts prepared me for this assignment.” Gary Clark Gary Clark, president of the Boy Scouts of America’s Catalina Council, began his career in Scouting as an active boy growing up in Idaho. “When I was 12, I had a good friend and we ran around on our bikes. We did everything together.” One day, Clark found himself making tin-foil dinners over an open fire pit in his friend’s yard. “My friend’s dad came out and introduced himself as a Scout leader and told us we had just completed the culinary requirement of the Tenderfoot badge in Scouting.” From that moment on “I was hooked,” he recalled. Clark began to pursue more badges with ferocity, loving the challenge that accompanied each one. Attending camp and special honors programs such as the Order of the Arrow, he earned his Eagle Scout Award as a teen before pursuing engineering at Brigham Young University. “I think part of my decision to go into engineering was partly due to the merit badges and the Scouting experience – the drafting, electrical and home repair badges gave me the hands-on skills and helped me decide that engineering was a good field for me.” For his long commitment to and leadership of the Boy Scouts Clark will receive the Lifetime Honoree Award at The Construction Industry’s Good

Scout Awards luncheon on May 2. After college, Clark interviewed with Southwest Gas and was hired as an engineer. He’s worked at the utility for 36 years, in Carson City, Las Vegas and Tucson. Today Clark is VP of the Southern Arizona Division. “I’ve had the opportunity to work with builders, home and commercial, all the various trades, serving new subdivisions and communities establishment with Southwest Gas,” he said. “It has been a great partnership – as was Scouting.”

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Scouting helps a boy become a man – and allows a man to be a boy.

”

– Gary Clark VP Southern Arizona Division Southwest Gas

When in Nevada, Clark began working as a Scout leader and has since become one the organization’s most ardent volunteers. He recently attended an adult leadership retreat at Camp Lawton in the Santa Catalina Mountains, where he and other adult Scouts not only camped, cooked and attended classes, but also set personal goals for pursuing excellence in the next year. “I’ve been involved in Scouting my whole adult life,” Clark said. “Scouting helps a boy become a man – and allows a man to be a boy.” Biz

THE CONSTRUCTION INDUSTRY’S GOOD SCOUT AWARD LUNCHEON Friday, May 2 $95 per person Registration – 11:30 a.m. Holiday Inn Palo Verde $850 for table of 10 Luncheon – 12 -1:30 p.m. Other sponsor levels available http://2014GoodScoutLuncheon.kintera.org or call Kim Brown at 750-0385 www.BizTucson.com

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BizAWARDS

MPA Common Ground Awards FC Tucson Scores Award of Distinction By David B. Pittman FC Tucson – which brought Major League Soccer to Tucson – won the prestigious Award of Distinction from the Metropolitan Pima Alliance at that organization’s 10th annual Common Ground Awards Ceremony. Eight other project, program or public policy efforts received Common Ground Awards, which honor those who use the spirit of collaboration to bring divergent interests together to improve the Tucson region. MPA, which is dedicated to advocating responsible development in metropolitan Tucson and furthering the interests of the real estate and development industry, held the December ceremony at the Tucson Jewish Community Center. In addition to FC Tucson, winners of Common Ground Awards and the categories in which they won are:

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Plaza Centro and The Cadence – Planning, Design and Construction Award

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Pima County Metal Watch – Community Engagement Award

• • •

Trinity Place Townhomes – Revitalization Award

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Sporting Chance Center – Community Building

Main Gate District – Public Policy Award Regional Wastewater System Optimization Master Plan – Public Works Award Live the Solution and Arizona Financial Face – Tied for Educational Investment Award

2013 MPA Common Ground Award Winners FC Tucson Events Since FC Tucson was created in 2010, it has grown from hosting a single event featuring two Major Soccer League teams to overseeing a month-long soccer extravaganza featuring 19 matches involving 10 MLS clubs, two international squads and one Mexican club. More than 60,000 fans have attended events of FC Tucson. The 2013 FC Tucson Desert Diamond Cup Finals became the first nationally televised preseason match in MLS history.

FC Tucson also operates a Tucson amateur team that competes in the USL Premier Development League. The expansion of big-time soccer into Tucson is continuing in 2014. MLS and FC Tucson entered into a multiyear partnership that makes Tucson the official western hub of preseason training. Eleven MLS clubs played or trained in Tucson during January and February. And thanks to the collaboration of Pima County, Kino Sports Complex and local businesses, Kino Sports Complex North has been repurposed to

become a premier soccer facility with two venues – the new North Stadium at Kino Sports Complex and the North Grandstand. The facility features six soccer fields available to professional, amateur and youth teams, and groups playing other field sports. Collaborators with FC Tucson include Swaim Associates, Long Realty, Simply Bits, Tucson Medical Center, United Soccer Leagues, Adidas, The Cactus Pricks (FC Tucson’s fans group), Pima County, Kino Stadium District, Visit Tucson, MPA and event sponsors.

PHOTOS: COURTESY MPA

FC Tucson

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Plaza Centro and The Cadence The Cadence is a 456-bed housing complex affiliated with The University of Arizona that was integrated with Plaza Centro, a project of nearly 20,000 square feet of stores, restaurants and bars. The properties are at the former site of the Greyhound Bus Depot next to the Fourth Avenue underpass and mark the eastern gateway to downtown Tucson. The initial collaboration between the City of Tucson and the development company of OasisTucson paved the way. UA and City of Tucson officials viewed the project as a way to simultaneously provide needed student housing, solidify ties between the university campus and downtown, and contribute to downtown’s renaissance. The UA’s solicitation for student housing projects along the modern streetcar route led to Capstone Development Corp., an Alabama firm that develops student housing facilities, joining the project. “With the streetcar coming online and the desire of the university to strategically move to downtown, Capstone provided the development experience and track record to win the UA request for proposal to become the first offcampus, UA-affiliated student housing project,” said Jim Campbell, president of OasisTucson. Campbell said during the planning stages of Plaza Centro, the development team met with representatives of neighborhood associations more than 20 times. He said there were no objections to implementation of the master plan in any public hearings and the plan itself The Cadence

was tweaked based on neighbor input. “We had to address such things as streetcar mechanics, historical structures, an archeological dig, environmental remediation, transportation patterns, railroad acceptance, underpass design, public parking, retail activation and pedestrian and bike traffic,” Campbell said. “This project would not have happened without the city, the university, Union Pacific and the neighbors being fully onboard and the development group – Capstone, Aleks Istanbullu Architects and OasisTucson – acting as a collaborative team.” The list of project collaborators included, among others, Tucson Expediting and Development, Norris Design, Summit dck, Baker & Associates, PK Associates, Peterson Associates, Daniel Diaz, Rialto Theater, Hotel Congress and Downtown Tucson Partnership. Other nominees included The Hub at Tucson, a high-rise residential and mixed-use project, and Junction at Iron Horse, a residential redevelopment. Pima County Metal Watch The Pima County Metal Theft Task Force represents a group of more than 100 companies, including all Pima County jurisdictions, law enforcement and metal recyclers, whose goal is to combat the multi-million dollar losses associated with the theft of copper and other metals. Within 12 months of forming, the task force launched an expansive public relations campaign, worked with state lawmakers to pass legislation and lobbied local governments to provide more resources to law enforcement to appre-

hend metal thieves. Amber Smith, executive director of Metropolitan Pima Alliance, was instrumental in forming the task force and served as a co-chair. She became involved after conversations with business people who had suffered substantial financial losses because of metal theft. Thieves target light-pole wiring, plumbing, air conditioning units, manhole covers and metal items from construction yards. Copper is a frequent target because of its high market price, but other metals are taken as well. The cost of metal theft to businesses is compounded because of lost service and repeated labor costs. Smith said utilities are particularly hard hit, experiencing “millions of dollars in losses.” “When we issued a call to action, the response was overwhelming,” Smith said. “More than 100 people showed up.” The task force made sure all parties were brought into discussions about finding solutions – including police departments, prosecutors, developers, builders, utilities, security firms, realtors, legitimate metal sellers, trade associations, insurers, security firms, chambers of commerce, nonprofits and religious organizations. The task force’s work contributed to passage of a trio of bills at the Arizona Legislature that were signed by Gov. Jan Brewer last year. The new laws require scrap metal dealers to register with the Arizona Department of Public Safety, impose stiffer penalties for metal dealers who knowingly purchase stolen materials, expand the definition of criminal damage to continued on page 140 >>> Main Gate Overlay District Level

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BizAWARDS

Trinity Place Townhomes The Revitalization Award went to Trinity Place Townhomes for the acquisition and rehabilitation of the blighted Las Montanas complex, 6240 S. Campbell Ave. The property was purchased out of foreclosure by an affiliate of Atlantic Development & Investments and was renovated using a combination of funding sources, including the City of Tucson. Trinity Place now features 88 energyefficient three- and four-bedroom townhomes designed for large low-income families. The complex has numerous on-site amenities, including a pool, playground, fitness facility, covered parking and a computer center. The property was rehabilitated with an emphasis on energy and green conservation design elements. The transformation revitalized the nearby area, prompting adjacent property owners to make improvements to their buildings. Jessica Breen, VP of acquisitions and development at Atlantic Development & Investments, called the project “a rolling rehabilitation” – which means some families lived in parts of the property while other parts were being renovated. “Celtic Property Management ensured that residents were well looked

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after during all stages of the rehab and that the property was always well maintained,” she said. Collaborators included Alliant Capital, Cherry Avenue Neighborhood Association, Four Leaf Construction, Arizona Department of Housing, National Mortgage Investors, Greater Phoenix Urban League, Sunnyside Unified School District, City of Tucson and Pima County. Other nominees were the renovation of Herbert Residential in Armory Park and First Impressions, a project to improve landscaping on Tucson Boulevard medians near Tucson International Airport. Main Gate Overlay District Rezoning The Main Gate Overlay District Rezoning encompasses Sixth Street to Speedway Boulevard and Park Avenue to Euclid Avenue. Within these boundaries, there are several historic buildings and several structures that are decaying and underdeveloped. With the participation of many property owners, including The University of Arizona and the Marshall Foundation, a successful overlay zone was created that both preserves historic structures and allows for new growth and development with the density needed for a project to be profitable. The result, which materialized after more than 30 neighborhood meetings and eight public hearings, created the standard for future overlay zones. Jim Mazzocco, deputy director of the City of Tucson’s planning and development services department, was the lead city staff member in overseeing the rezoning process. The plan amendment was initiated by the City Council in 2011 and approved in 2012. “While there was neighborhood op-

Main Gate Overlay District

Proposed Marriott Residence Inn Hotel

Hub at Tucson

position, the historic preservation standards of the Main Gate District are very supportive of historic preservation of the buildings that are located there,” Mazzocco said. “The Main Gate District established a design review process that worked very well based on the input from participants both on the design review committee and applicants using the process.” Other nominees were the Pima County Community Wildfire Protection Plan and the 2012 Standards for Public Sanitary Sewers in Pima County. Regional Wastewater System Optimization Master Plan In 2006, Pima County embarked on a regional wastewater system optimization master plan – the largest capital improvement program ever attempted by the county. The Regional Optimization Master Plan established a $720 million program that included the expansion and upgrade of one water reclamation facility and the replacement of another to provide higher quality effluent and to provide metropolitan wastewater capacity beyond 2030. ROMP also includes a Water and Energy Sustainability Center to house a state-certified analytical laboratory and a staff training center. Other nominees were Pima County Solid Waste Privatization and Canoa Preserve Park, Green Valley’s first public park. Live the Solution & Arizona Financial Face-Off Live the Solution and Arizona Financial Face-Off received Common Ground Awards for Educational Investment. Live the Solution is a nonprofit organization that administers a newly

ILLUSTRATIONS: COURTESY MPA

continued from page 139 include tampering with utility property to obtain scrap metal, and make it illegal for anyone to purchase or possess a metal known to be stolen. The laws took effect Aug. 2. In addition to MPA, other founders and sponsors of the task force included BOMA of Greater Tucson, CCIM Southern Arizona Chapter, Tucson Electric Power, Century Link, Gordley Group and the Tucson Police Department. More than 80 organizations were named as collaborators to the task force.

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launched financial assistance and postsecondary attainment program known as AZ Earn to Learn in cooperation with Arizona’s three state universities, leading financial institutions, high schools and community colleges. AZEL pairs nearly $7 million in scholarships to low- and moderate-income students to attend state universities in Arizona. AZEL also provides financial education, one-on-one financial coaching, college readiness training and ongoing support to participants and their families so they can become financially empowered. Arizona Financial Face-Off is a finance-focused competition open to all schools and other groups from metro Tucson who hosted Credit-Wise Cats workshops in personal finance. The fifth annual AFF competition at Dodge Middle School on April 20, 2013, attracted more than 250 participants, including entire families who had attended Credit-Wise workshops. The AFF competition challenges students to apply the knowledge they acquired in the workshops. During the competition, teams work their way through fun financial stations, such as Financial Football and Budget Ball to build financial portfolios that include such things as a credit score, disposable income, savings and debt payments. Using their financial portfolio, each team must make housing decisions about whether to rent or purchase one of eight homes, then justify that decision to a board of community partners acting as judges. Every team is guaranteed $100 and the top team is awarded $850. Collaborators in AFF include the UA’s Take Charge America Institute CreditWise Cats, Bancapital Home Loans and Tucson Association of Realtors. The other nominee was San Miguel High School. Sporting Chance Center The award for Community Building went to Sporting Chance Center, a $6 million youth athletic center. Public and private sectors joined forces for the project, including Tucson Medical Center, Pima County, the Tucson Conquistadores and Southern Arizona Community Sports. See article on page 148. Other nominees were the YMCA’s Diabetes Prevention Program and Mulcahy YMCA at Kino Community Center. Biz www.BizTucson.com

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– Don Tringali Executive Director Sporting Chance Center

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”

PHOTO: COURTESY SPORTING CHANCE CENTER

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One of the most gratifying things about the facility is seeing that it serves such a broad cross-section of the community.

BizSPORTS

$6 Million Investment for Kids By Steve Rivera The Sporting Chance Center was an idea more than a decade in the making. Don Tringali, executive director of the $6 million facility on the city’s northwest side, brainstormed the concept after creating Sporting Chance Youth Basketball when he moved from Los Angeles to Tucson 20 years ago. He’s proof that patience is a virtue and that dreams do come alive with persistence. The idea of a facility really got started about 10 years ago, and it became a reality in the summer of 2013. Last fall, Tringali stood at a podium to thank all who were involved in the project, saying the moment was “better than imagined.” Numerous people and organizations – public and private sectors united – came through for Tringali, a lawyer by trade and basketball lover at heart. Tucson Medical Center, Pima County, the Tucson Conquistadores and Southern Arizona Community Sports partnered in the facility’s development. So many more also helped. The Sporting Chance Center was the recipient of the Community Building award at the Metropolitan Pima Alliance 10th Annual Common Ground Awards ceremony in December 2013. The awards honor those who utilize the spirit of collaboration to bring divergent interests together to improve the Tucson region. “The facility and what they are doing has really surpassed anything I could have dreamt up,” said Julia Strange, VP of community benefit for TMC. “Kids now have a facility to be active in that’s safe and accessible. It’s a place www.BizTucson.com

that invites the community, which can be transformative for a community and neighborhood.” The facility – after a soft opening in the summer – officially held its net-cutting ceremony in early October. “This facility could not have been better planned, executed and completed,” said Pima County Administrator Chuck Huckelberry. “I came to the soft opening and I saw people lined up and it was a facility exactly what it was designed for – kids, families, parents. It was fantastic.” It’s been that way from the start – which, of course, brings a smile to Tringali. “Every time I go there, it’s great. I see the parking overflowing with cars and hundreds of kids and families scattered throughout the center,” Tringali said. “It’s one of the best feelings I’ve had.” Because of its location – 2100 W. Curtis Road – and because of Tucson’s diverse community, Tringali called the center a “perfect melting pot” for those playing on the five basketball courts and eight volleyball courts. “At any one time you may have 50 kids from lower socio-economic situations playing basketball, a couple of courts being occupied by girls volleyball teams, and on another court you might have a basketball club made up of African-Americans and Hispanics, and a court full of Special Olympic athletes,” Tringali said. “One of the most gratifying things about the facility is seeing that it serves such a broad cross-section of the community.”

It’s why health and wellness is a big issue for the facility. Only healthy snacks are served as part of its “play smart, eat smart” initiative. “The parents love it because there is no junk food,” Tringali said. Open gym is common, and will feature former University of Arizona basketball coach and Hall of Famer Lute Olson, who will have a permanent wall in his honor and will conduct the Lute Olson Basketball Academy, a signature program. “It’s a great facility and it turned out better than expected,” said Olson, who cut down the nets to mark the official opening. “It’s very much needed because the schools don’t keep the gyms open during the summer. Now, kids have a place to play seven days a week.” Tringali said as many as 10,000 people are projected to visit or participate at the facility each month. Weekends could see as many as 5,000 during bigger events. The 40,000-square-foot facility would not have been possible if not for TMC and the Tucson Conquistadores, who support youth sports in Southern Arizona. It gives children a place to go “and that fits our wheelhouse – it appeals to our kids,” said Neal Weitman, Conquistadores president. “I’m very proud to say that we support this,” he said. “I’m proud that thousands of kids will be able to use the facility. It was much needed. Being able to contribute to something that is going to be there permanently, we enjoy that.”

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PHOTO: AMY HASKELL

BizSPORTS

Back row from left – Lori Carroll, Valerie Samoy-Alvarado and Ted Schmidt. Front row from left – Jon Fenton and George Kuck

Paying It Forward Soccer Clubhouse Powered by Giving By Christy Krueger Try creating something positive was the advice Ted Schmidt received long ago after a horrific family tragedy. Those words returned to him years later as he grieved the death of his beloved wife, Ann Schmidt. Because of her passion for youth soccer – and particularly Tucson Soccer Academy – he decided to create a home away from home for TSA kids and their families. On Jan. 3, 2014, he opened the doors to the Ann Kathryn Schmidt Kickin’ It Clubhouse at Brandi Fenton Memorial Park. Founded in 2000, TSA is the largest youth soccer club in Southern Arizona. For eight years, Ann managed her daughter’s 94 Red Girls team, named for their birth year and red representing TSA’s highest competitive level. “Ann was the heart and soul of the team,” said Schmidt, a Tucson lawyer. “She was like a second mother to 144 BizTucson

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them.” Although TSA regularly uses the soccer fields at Brandi Fenton, Schmidt, who is now the organization’s president, didn’t pay much attention to the old run-down house sitting on its eastern edge. That is until the county suggested TSA renovate and take over the building. In the months after Ann died from breast cancer on Jan. 3, 2011, Schmidt would think back to 1988 when they lost their 18-month-old daughter, Tara, in a drowning accident. During the funeral their minister talked about turning a negative into a positive, which inspired the couple to start a University of Arizona scholarship for in-state students. “We learned from this. It was all part of the thinking of turning the building into something and naming it after my wife,” he said. While he knew there would be chal-

lenges with such an ambitious project, the county backed him all the way, specifically former Pima County Supervisor Ann Day and her assistant, Valerie Samoy-Alvarado. “We ended up with a 20-year, zerorent lease agreement,” he said. “What impresses me about Pima County is I’ve experienced red tape with government all my life, but Ann Day was cutting red tape, not making it.” At about this time, help started coming to Schmidt in ways he never imagined. Lori Carroll, an award-winning Tucson interior designer and owner of Lori Carroll & Associates, volunteered to furnish the clubhouse. She worked with her vendors to get nearly all materials donated – from tile and paint to furniture and the TV. Builder Jon Fenton, president of A.F. Sterling Homes, approached Schmidt and offered to manage the project at no www.BizTucson.com

charge. Fenton had previously worked with the county in naming the park after his daughter, who died in a car accident in 2003. “I told him about my wife and he told me about his daughter, and we became fast friends,” Schmidt said. “He said to me, ‘Every time you go by this park, you’ll get a warm feeling because it’s tangible and a positive for the community.’ Jon was unbelievable in getting it all done – he and Lori Carroll were great.” Schmidt’s dream of building a club where TSA kids could exercise, hold meetings, do homework and watch soccer videos was beginning to take shape. ProActive Physical Therapy bought naming rights to the exercise room, which was outfitted with fitness equipment from Arizona Health at cost. “One thing no other (local) soccer club has is strength and fitness equipment,” he said. “Dave Cosgrove, Pima Community College head soccer coach, will supervise the training program. The kids can’t go in the room without him there.” Despite the generous material donations Schmidt received, he still needed someone capable of running a capital campaign. He found this person in TSA parent Craig Hyatt, senior VP/wealth advisor at Wells Fargo Wealth Management Group. Hyatt helped procure contributions from coaches, individuals, law firms and other businesses. “There were families of TSA in a position to give wealth, a lot of little donations and a few bigger,” Hyatt said. “We raised enough money to pay for the building and operating costs for a number of years.” Other funding strategies included the sale of name tiles and bricks, which Hyatt believes will be a tremendous help in offsetting future expenses. Of all aspects that went into creating the clubhouse, closest to Schmidt’s heart is the lounge area – a bright, open space with comfortable couches and oversized photos of players adorning the walls. This room was named for the 94 Red Girls after their families donated $20,000, thanks to the dedicated fundraising efforts of Bruce Tennenbaum, president of Arizona Pest Control. Although the clubhouse came about due to heartbreaking circumstances, those close to the project feel the process was extremely rewarding and the outcome a positive one. “That I was personally involved in helping people, to hear what Ted wanted to do and see it all come together is amazing,” Hyatt said. “Part of my motivation,” Schmidt added, “was to show this can be done and to show others that projects can be put together like this. Two other clubs have come to me and asked how to do this with their clubs. It gave me a reaffirmation in humanity and the Tucson community that people you don’t know and don’t have kids in soccer said they want to help. It’s brought out the best in a lot of folks, and I hope in 15 years it will be a wonderful resource but also an inspiration to kids to do their best.”

Biz

To Donate Ann Kathryn Schmidt Kickin’ It Clubhouse, 3482 E. River Road, will require ongoing funding to stay open. To make a donation or purchase a tile or brick, call Ted Schmidt at (520) 790-5600. You may also contact him if your organization is interested in holding meetings at the clubhouse.

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University of Arizona’s Shelton Guides $1.8 Billion Enterprise

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RAYTHEON

The Real Southwest

Leadership

• TUCSON MAN & WOMAN OF THE YEAR EL TOUR DE TUCSON HITS 30 • SYNCARDIA SYSTEMS: ARTIFICIAL HEART

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Southern Arizona’s $2.5 Billion Industry A

TREO A SALUTE SPECIAL TO REPORT: JIM CLICK:

NEW RAYTHEON HORIZONS SPIRIT FOR OF2013 EDUCATION AWARD

EL TOUR DE TUCSON HITS 30

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A SALUTE TO JIM CLICK:

RAYTHEON SPIRIT OF EDUCATION AWARD

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SUMMER 2012

2ND ANNIVERSARY EDITION

Founder: Dr. Thomas Grogan

MTCVB SPECIAL REPORT: TUCSON’S TOURISM BUREAU SPORTING NEW STRATEGIES www.BizTucson.com

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ARIZONA’S

CENTENNIAL

TREO SPECIAL REPORT 2012: THE YEAR AHEAD

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THE REGION’S BUSINESS MAGAZINE

FIRST ANNIVERSARY EDITION

Sky’s the Limit

The Region’s Dynamic Aerospace Sector

SOLARANGEL

Guest Ranch, Inc. Husband & Wife Team Draws Global Audience To Old West

On A Mission to Save the Planet

• • SPECIAL SECTION: UA TECH PARK – THE NEXT BIG IDEA

WHY THE WORLD IS WATCHING TUCSON

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SPRING 2009

THE REGION’S BUSINESS MAGAZINE

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{ PREMIERE

EDITION }

WOMEN OF BIOSCIENCE TOURISM REPORT

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SPECIAL EDITION: TREO 5th ANNIVERSARY REPORT

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UA WILDCAT LEGEND

JIM FURYK

PGA TOUR PLAYER OF THE YEAR - 2010 WORLD’S TOP 64 GOLFERS SET TO COMPETE

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Global Reach Why Accenture Match Play Championship Means The World To Our Region

Visionary Professor & Inventor Roger Angel

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the

why the world is watching Tucson

Branding of

Andrew Weil

Funding His Mission with a Growing Line of Products Plus New Book: His Vision for Health Care Reform

Global Icon Arrives:

{ } The New Target.com Facility

The Ritz-Carlton Dove Mountain

LIFE-SAVING HEART DEVICE pg. 42

GLOBAL VISIONARIES pg. 47

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nearly 1 Million square feet!

THE NATION’S FASTEST GROWING AEROSPACE CO pg. 32

THE IMPACT OF IBM TUCSON’S SITE pg.62

THE CEO REPORT: HOSPITALS pg. 66

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The Region’s Bioscience Revolution

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UA HOOPS COACH SEAN MILLER ON LEADERSHIP pg.24

In spring of 2009 the cover of the inaugural edition of BizTucson emblazed our motto: Why the World is Watching Tucson. Twenty issues later we’re still bringing you articles and profiles on world-class businesses right here in Southern Arizona. We reported on major players like Raytheon Missile Systems, Ventana Medical Systems and The University of Arizona – and little startups gone big like Buffalo Exchange consignment stores, language interpretation firm CyraCom International and electro-optics pioneer Arete Associates. We’ve taken you behind the science at CAID Industries specialty manufacturing and Syncardia, perfecting the artificial heart. BizTucson has featured global visionaries, inventors, entrepreneurs and local legends. We’ve covered longtime business sectors like agriculture, healthcare, education, the military, tourism and the arts, as well as nonprofits and the big-hearted generosity of this city’s individuals and businesses alike. Our community is unique in the world. We’re proud of its many facets. And we intend to bring you more fascinating reports in the years ahead.

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BizINSURANCE

Offering Employees Healthcare Choices By Christy Krueger Combine today’s online technology with the once-popular cafeteria-plan model and you have an innovative way of buying health insurance that meets all mandates of the Affordable Care Act. Lovitt & Touché, one of the country’s largest insurance brokers, recently launched such a platform. ClearPath Prime is a private healthcare exchange that is now available to businesses both large and small.

“

This new approach puts employees at the controls of their healthcare and benefits to better customize what they need for their families.

”

– Steve Touché President, Lovitt & Touché

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“This new approach puts employees at the controls of their healthcare and benefits to better customize what they need for their families,” said Steve Touché, president of Lovitt & Touché. ClearPath Prime is designed to offer greater cost predictability for companies and generate more involvement from their workers. It will allow employers to re-design the delivery of medical insurance to their employees, Touché said. While 3.3 million people are now enrolled in public exchanges – either federal or state – private marketplaces are also popping up. “Walgreens put 160,000 workers in a private exchange last year,” said Doug Adelberg, VP of Lovitt & Touché, who oversees its employee benefits department. “You can offer a private exchange (to employees) to have a shopping experience for benefits. Employees will be happier because they choose a plan for themselves. One size does not fit all.” Adelberg explained the steps employers take after signing up with ClearPath Prime, which is expected to go live this June. First, the employer must decide on a benefit amount that will be allocated to employees and select a carrier, such as Blue Cross Blue Shield, UnitedHealthcare or Cigna. Employees are then directed to the ClearPath Prime website to view an educational video before completing a survey to determine their needs and preferences. Each healthcare carrier will offer ap-

proximately eight to 12 plans, differing in such aspects as deductibles, premiums and co-pays. The idea is to let employees decide which plan would best match their individual situations rather than the company selecting one policy for everyone. While similar to cafeteria plans where workers can choose from a few options, Touché said, “In our exchange there are more plans to choose from and you can customize according to needs.”

“

Employees will be happier because they choose a plan for themselves. One size does not fit all.

”

– Doug Adelberg VP, Lovitt & Touché

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Touché feels this makes it easier for companies to plan for costs. “If an employer gives the employee $400 for a medical plan, he or she can select the $600 plan and pay the remaining $200. If the plan is under $400, the employer can choose to let the employee keep the difference or not. That’s cost predictability,” Touché said. The key to this concept and what makes it different from past approaches is the technology angle, Adelberg said. “Ours is a web-based model. The employee must shop online. ClearPath Prime will pick the right plan based on (the employee’s) answers to questions.” In addition to ACA-compliant medical plans, ClearPath Prime makes other benefits available, such as dental, vision, life and disability policies. Lovitt & Touché’s exchange will aggregate each company’s employees into one invoice for the employer and its payroll system. Although the ACA is going through some changes, as President Obama predicted in 2010 would be necessary, Touché believes the government is working to fill in the gaps. “I think Congress is trying to alleviate the burden on employers. That’s why changes keep coming down the pipe.” The latest example is another postponement of employer mandates, this one putting off non-compliancy penalties for companies with 50 to 99 employees until 2016. Those with 100plus workers must provide the required health insurance benefits to 70 percent of full-time employees in 2015 and 95 percent by 2016 or pay penalties. “It’s not a repeal, it’s a fix,” said Adelberg, who feels there won’t be many more changes in 2014 since this is a Congressional election year. Overall, Touché and Adelberg recommend employers stay current and compliant with ACA, specifically on reporting responsibilities and changes in the law. They also suggest developing a longterm strategy, which may include providing an annual benefit statement to employees so they understand their total compensation. “Tell employees what you’re paying – the percentage and dollar amount of the total premium,” Adelberg said. “It makes your employees part of the process and it’s being transparent.” Biz www.BizTucson.com

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BizHONOR

Women Making Strides By Tara Kirkpatrick Women have made tremendous strides in the world in recent years, and families and the communities in which they live benefit from their success. Yet, as far as they’ve come, equity and parity with men are still far from their grasp. That’s according to Judith Gans, this year’s honoree of the Women’s Foundation of Southern Arizona. Women today are “by and large fully represented in colleges, graduate schools and professional schools,” said Gans, who is program manager for immigration policy at the Udall Center for Studies in Public Policy at The University of Arizona. “The presence of female CEOs, while still infrequent enough to evoke comment, is becoming more commonplace. But there is still much to do. “Working to redress unique challenges faced by women, as well as to foster an environment that enables women to achieve lives that fully engage their abilities and interests is good for women, is good for families and is good for the whole community,” she added. Gans, who will be honored at the foundation’s April luncheon, holds a bachelor’s degree in economics from Stanford University, a master’s degree from Harvard’s John F. Kennedy School of Government and an MBA from UCLA. Fluent in Portuguese, this mother of two currently analyzes U.S. immigration policy through the lens of economics and has served as a devoted advocate for the Women’s Foundation, spearheading one of the group’s groundbreaking reports: “How Much is Enough in Your County? The Self-Sufficiency Standard for Arizona 2012.” The report that Gans led has been used by businesses, nonprofits and government entities to understand what it takes to make ends meet for a family of a given configuration in each of Arizona’s 15 counties. “Judy was selected based on her passionate support of equity for women 150 BizTucson

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and girls, and her two terms of service on the WFSA board of trustees,” said Laura Penny, the foundation’s executive director. “Through her work at the Udall Center for Public Policy, Judy has been recognized internationally as an expert on the history and impact of U.S. immigration policies, and has consulted with a variety of community and business organizations on immigration issues. We are fortunate to have her in Tucson.” Founded in 1991, the Women’s Foundation of Southern Arizona began with

Judith Gans

WOMEN’S FOUNDATION OF SOUTHERN ARIZONA LUNCHEON HONORING JUDITH GANS Wednesday, April 23 Tucson Convention Center Registration & grantee expo – 11 a.m. Luncheon and program – Noon $75 per person $700 for table of 10 www.womengiving.org/events

the idea that when women thrive, so does the whole community. One of more than 160 such funds that promote opportunity for women and girls, this foundation has invested more than $1.7 million in organizations that help women conquer social, political and economic inequities. For example, the foundation’s program, Unidas, trains high school girls from across Tucson to be grantmakers, philanthropists and leaders. “Some of our earliest participants are now embarking on professional careers and will be Tucson’s future leaders,” Penny said. “We have made a difference in the lives of thousands of individual women and their families during our 20 years of grantmaking in Southern Arizona – women who have now learned a skill, gained education, obtained employment, accessed life-saving healthcare, escaped abusive relationships and become self-supporting. We hear their testimony at our luncheon every year.” The foundation’s research arm also provides significant answers that can translate into statewide policy outcomes for women in Southern Arizona. “The world has changed significantly for women over the 20 years of our existence, partly propelled by our relentless advocacy and public education about the advantages of gender equity,” says Penny. “Women have greater opportunities than ever before – yet they continue to be paid less and are underrepresented in the ‘corridors of power’ – so our work in this regard is not done.” Indeed, 2014 promises to be a banner year for the Women’s Foundation, which, thanks to a partnership with the Connie Hillman Family Foundation, will award more than a quarter of a million dollars in grants to nonprofit organizations working to improve the lives of women and girls in Pima, Cochise and Santa Cruz counties, the foundation’s largest grant pool to date, Penny said.

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Worldâ&#x20AC;&#x2122;s Largest Military

Solar Project By David B. Pittman

PHOTOS: CHRIS MOONEY

ident, b Powell, pres ment Bank; Bo op el n& ev tio D lla an of D-M insta orth Americ commander g director, N d, in ar wag ch ne an an Re m Bl ty on depu Col. Kevin E. d GM, Chevr lex Hinojosa, .S. Air Force nberg, VP an d U te ; an Ro , gy From left â&#x20AC;&#x201C; A ds er gg or re En iff r G Sola Holdings; Gabrielle G a SunEdison Solar Energy gresswoman IC on M C , North Americ er EO . rm C es , fo ic Green sband of ergy Serv r Wing; Bill tronaut and hu UniSource En 355th Fighte American as c Power and ed tri tir ec re El , lly on cs Ke Mark S Energy, Tu able Power; d COO, UN s, president an en ch ut H id Dav

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BizMILITARY Davis-Monthan Air Force Base has long been known for military and security leadership. Now D-M has moved to the front of the line in a new leadership category – green energy production. It happened Feb. 13 when the Air Force unveiled a 16.4 megawatt solar park on the base that is the largest solar power project on a U.S. military installation anywhere in the world. The project – which consists of 57,000 solar panels mounted on singleaxis trackers that will automatically follow the path of the sun during the day – is located on 170 acres of previously underutilized land on the air base. The solar park, the result of a public/ private partnership with many players, took more than a year to build at a cost of about $40 million. The Air Force entered into an agreement with SunEdison in 2010 to design, build, operate and maintain the project. Financiers of the project included MIC Solar Energy Holdings, which is a subsidiary of Macquarie Infrastructure Co., Chevron and the North American Development Bank – a financial institution established and capitalized in equal parts by the United States and Mexican governments to develop environmental infrastructure projects along their common border. Electricity produced by the plant will be purchased by D-M under a 25year power-purchase agreement. Col. Kevin Blanchard, the D-M installation commander who also heads the 355th Fighter Wing, said the solar project will save the base $400,000 to $500,000 annually in electricity costs over the next 25 years. The U.S. Air Force is the largest consumer of energy in the federal government, spending more than $9 billion annually in electricity and fuel costs. And D-M – a small city within a city with on-base housing and large industrial and maintenance needs – is among Tucson’s largest energy users. Military leaders have set a goal of reducing the cost of energy consumption by 25 percent by 2025 through various initiatives, including greater use of renewable energy. “The Department of Defense has been a leader in looking for renewable and cheaper energy sources,” Blanchard said. “Here in Arizona, the sun shines brightly about 340 days a year. Our ability to use the sun for clean, www.BizTucson.com

renewable energy is not only critical to D-M’s mission, but also to the Defense Department, which is trying to identify every avenue it can to save money so those savings can be put into readiness and modernization of our military. Cutting D-M’s electric bill helps the future of our Air Force, the greatest air force in the world.” Power produced by the solar facility will interconnect with D-M’s electrical infrastructure onsite and is expected to generate sufficient energy to cover 35 percent of electrical use on the base. For its participation in the project, Tucson Electric Power will acquire Renewable Energy Credits through a 20year agreement that will aid the utility in reaching compliance with Arizona’s Renewable Energy Standard.

“

Our ability to use the sun for clean, renewable energy is not only critical to D-M’s mission, but also to the Defense Department.

”

– Col. Kevin Blanchard Installation Commander Davis-Monthan Air Force Base

TEP President and COO David Hutchens said the D-M solar park will produce enough energy annually to power 3,000 homes, reduce carbon emissions equivalent to taking 7,500 cars off the road, and will save 20 million gallons of water a year. “That’s huge. It’s a great affect for our environment and it’s right here in our city,” he said. Hutchens gave a great deal of credit for the success of the project to visionary SunEdison officials. He said they were ahead of their time about the possibilities of solar power when the development at D-M was first discussed back in 2007. “At that time solar was quite a bit more expensive and the size of this project was unheard of,” said Hutchens, who was formerly TEP’s VP of energy efficiency and resource planning. “To put it in perspective – it was twice all the remaining solar we had through-

out our system. It was visionary to look that far out into the future, but that is exactly what SunEdison did. “They looked into that price curve for solar power over time,” he continued. “A lot of us thought it (solar energy) was going to happen – but they bet on it. They sold us cheap, renewable energy credits so they could have those for when prices dropped.” SunEdison is headquartered in Belmont, Calif., in close proximity to Silicon Valley’s technology and talent pool. The company is a global leader in delivering solar power and has solar installations, manufacturing plants and 39 offices throughout North America, Europe and Asia. Several speakers at a ribbon-cutting ceremony at the D-M solar facility said the project would not have come to fruition without the longtime efforts of former U.S. Rep. Gabrielle Giffords to unite divergent parties, galvanize support in Congress and cut through bureaucratic red tape. Bob Powell, president of solar energy in North America for SunEdison, thanked Giffords for “her great leadership and support for clean energy.” Powell also thanked current Congressman Ron Barber for his continuing support of solar energy and the D-M solar project. Giffords husband, Mark Kelly, a former astronaut and Navy captain, spoke of his wife’s efforts to help the D-M solar facility at the ribbon-cutting ceremony for the project. “When Gabby first started working on the D-M solar project, it didn’t look very good,” Kelly said. “The first reports indicated red tape was going to be a big obstacle. The technology had great potential for D-M and Tucson – but the costs started piling up and restrictions on power-purchasing agreements looked like they might upend the entire project. “So Gabby did what she does best. She talked to the experts, she brought people together and she pushed folks in Washington, D.C. to come up with common-sense solutions. “The result was an extension of purchasing agreements that allowed for smart, long-term investments on bases like D-M that will benefit our military, our community and our private industry for decades to come.”

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BizVIEWPOINT

Community Investment Needed to Transform Tucson By Brent DeRaad Those who attended Mayor Jonathan Rothschild’s State of the City address heard how he and several community leaders recently visited Oklahoma City to learn about its downtown renaissance. After being shunned by a company that couldn’t see its employees living in Oklahoma City, the city and private sector invested hundreds of millions of dollars to transform its downtown. The primary goal was to attract new companies, residents and visitors to a thriving urban core. At worst, they would create a better place in which existing residents and businesses could take pride. The investment in Oklahoma City accomplished all of the above. It serves as a wonderful example for what could happen in Tucson. Government and business need to work together closely in metro Tucson and Pima County. Government’s primary role is to provide quality infrastructure and services at the lowest possible costs to constituents. However, effective government leaders invest strategically to stimulate private investment that far outweighs their outlay. In Tucson, millions have been spent creating the modern streetcar route, which will begin serving passengers later this year. That will spur transitoriented development along the route with businesses locating near stops. Pima County and its bond advisory committee are considering numerous projects for inclusion on a November 2015 bond election ballot. They are working with the private sector and nonprofit organizations to determine which projects have the greatest opportunity to improve residents’ quality of life, while – in some cases – attracting visitors. Projects deemed most worthy will be included on the ballot. While promising, work remains. We at Visit Tucson are eager to continue partnering with Pima County, Tucson and Oro Valley, and collaborating with 154 BizTucson

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regional economic development organizations and our 500 member businesses to build a stronger Tucson. Where does tourism fit? Pima County visitors spend $2 billion annually, according to Arizona Office of Tourism research. The tourism industry employs 22,000 people throughout the county. In surveying visitors, we learned that only 29 percent of their expenditures

Brent DeRaad

President & CEO Visit Tucson are on lodging, while the remainder is spent throughout the region on food and beverage, entertainment, attractions, shopping, local transportation and more. More importantly to you, visitors generate millions in bed- and sales-tax revenue, with the great bulk going to government general funds. Tucson collected approximately $9 million in base bed-tax revenue last year, along with $3.5 million in revenue from a surcharge of $2 per occupied room per night paid by hotel and resort guests. The city invested $3 million – 33 percent of the base – in Visit Tucson, with the remaining $9.5 million going to the city’s general fund. Oro Valley collects approximately $875,000 annually in bed tax. The

town invested $120,000 of it in Visit Tucson, with approximately $750,000 going to its general fund. A Scottsdale study found that visitors pay $2 in sales tax for every dollar paid in bed tax. All local sales-tax revenue goes to municipalities’ general funds. In applying that here, municipalities retain more than 90 percent of tourismrelated sales and bed-tax revenue. Tax dollars from visitors lessen what you pay for police, fire, water, libraries and other municipal services. We at Visit Tucson believe we can generate additional visitor tax dollars – but it will take investment of more municipal bed-tax revenue in our sales and marketing programs to make that happen. Of the $2 billion in direct travel spending that occurred in Pima County last year, Visit Tucson tracked $214 million in leisure, meetings, sports and film-related business we booked directly. Based on our $7 million annual budget, we generated $30 for every $1 allocated to us. Visit Tucson’s budget exceeded $11 million in 2006-07. While Pima County has invested 50 percent of its bed-tax collections annually in our organization for many years, investments from other government partners fell substantially during the recession. We are outspent considerably by Phoenix, Scottsdale, Palm Springs, San Antonio and other cities against which we compete for leisure and meetings travel. We increased our private-sector revenue this year, and are working with our municipal partners to increase their investment of visitor paid bed-tax revenue in our travel marketing programs. Based on the return we are already generating, that strategic investment by municipalities would yield a strong return via more visitors and the money they spend here.

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