Spring 2014 real estate

SPECIAL REPORT 2014

THE REGION’S BUSINESS MAGAZINE

6 BizTucson

<<<

Spring 2009

www.BizTucson.com

www.BizTucson.com

Spring 2009

>>>

BizTucson 7

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

<<<

Spring 2014

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

www.BizTucson.com

Spring 2014 > > > BizTucson 103

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

104 BizTucson

<<<

Spring 2014

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

www.BizTucson.com

www.BizTucson.com

Spring 2014 > > > BizTucson 105

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

<<<

Spring 2014

“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

www.BizTucson.com

Spring 2014 > > > BizTucson 107

108 BizTucson

<<<

Spring 2014

www.BizTucson.com

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

110 BizTucson

<<<

Spring 2014

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.”

Biz www.BizTucson.com

www.BizTucson.com

Spring 2014 > > > BizTucson 111

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

<<<

Spring 2014

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

www.BizTucson.com

Spring 2014 > > > BizTucson 113

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 >>>

114 BizTucson

<<<

Spring 2014

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

”

www.BizTucson.com

www.BizTucson.com

Spring 2014 > > > BizTucson 115

BizCOMMERCIAL

BUY SURPLUS EQUIPMENT YOUR

WE WANT TO

www.swliquidators.com

SHOP BENCHES CABINETS TABLES MOTORS PUMPS

850 E. TETON

•

TEST OSCOPES DVMS SIG GENS SPECTRUM-NETWORK

LAB ANALYTICAL LASERS HEATING & COOLING MICROSCOPES

MATERIAL HANDLING FORKLIFTS PALLET JACKS CONVEYOR

SOUTHWEST LIQUIDATORS (520) 747-2083 TUCSON, AZ 85706 In Business Since 1985

INDUSTRIAL SURPLUS 116 BizTucson

<<<

AUCTION

Spring 2014

CONSIGN

BUY OUTRIGHT

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.”

Biz www.BizTucson.com

www.BizTucson.com

Spring 2014 > > > BizTucson 117

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

118 BizTucson

<<<

Spring 2014

2013

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

<<<

Spring 2014

www.BizTucson.com

“

BizCOMMERCIAL

The focus is on providing an environment to inspire creativity.

”

– 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.”

Biz

www.BizTucson.com

Spring 2014 > > > BizTucson 121

BizCONSTRUCTION

N E W

T O

M A R K E T

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.

122 BizTucson

<<<

Spring 2014

www.BizTucson.com

www.BizTucson.com

Spring 2014

>>>

BizTucson 123

BizCONSTRUCTION

N E W

T O

M A R K E T

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.

124 BizTucson

<<<

Spring 2014

www.BizTucson.com

www.BizTucson.com

Spring 2014

>>>

BizTucson 125

BizCONSTRUCTION

N E W

T O

M A R K E T

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.

126 BizTucson

<<<

Spring 2014

www.BizTucson.com

www.BizTucson.com

Spring 2014

>>>

BizTucson 127

BizCONSTRUCTION

N E W

T O

M A R K E T

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.

128 BizTucson

<<<

Spring 2014

www.BizTucson.com

www.BizTucson.com

Spring 2014

>>>

BizTucson 129

BizCONSTRUCTION

N E W

T O

M A R K E T

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.

130 BizTucson

<<<

Spring 2014

www.BizTucson.com

www.BizTucson.com

Spring 2014

>>>

BizTucson 131

BizCONSTRUCTION

N E W

T O

M A R K E T

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}

132 BizTucson

<<<

Spring 2014

520.907.1012 steve@biztucson.com

www.BizTucson.com

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.

”

www.BizTucson.com

Spring 2014 > > > BizTucson 133

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

<<<

Spring 2014

www.BizTucson.com

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.

Biz

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

www.BizTucson.com

Spring 2014 > > > BizTucson 135

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

<<<

Spring 2014

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.

”

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.”

“

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

Spring 2014 > > > BizTucson 137

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:

•

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

•

Pima County Metal Watch – Community Engagement Award

• • •

Trinity Place Townhomes – Revitalization Award

• •

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

138 BizTucson

<<<

Spring 2014

www.BizTucson.com

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

www.BizTucson.com

Spring 2014 > > > BizTucson 139

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

140 BizTucson

<<<

Spring 2014

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

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.

www.BizTucson.com

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

Spring 2014 > > > BizTucson 141

– Don Tringali Executive Director Sporting Chance Center

142 BizTucson

<<<

Spring 2014

”

PHOTO: COURTESY SPORTING CHANCE CENTER

“

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.”

Biz

Spring 2014 > > > BizTucson 143

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

<<<

Spring 2014

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.

www.BizTucson.com

Spring 2014 > > > BizTucson 145

98 BizTucson

<<<

Spring 2014

www.BizTucson.com