Inside Tucson Business 01-27-2023

Inside Tucson Business is published 26 times per year (once every other week on Fridays) plus the Book of Lists in January. Cost is $1 per single issue, $50 for 26 issues, $85 for 52 issues and $105 for 78 issues. The Book of Lists is included in annual and multi-year paid subscriptions. Back issues from within the past 12 months are $1 each. Delivery is available by U.S. Postal Service.

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Communication is key to legal success

By Karen Schaffner Inside Tucson

Business

Staff

When Daniel Barraza graduated from the UA with a bachelor’s degree in English, he knew he wanted to do something to make a difference in his city.

The third-generation Tucsonan looked around and saw an underserved community, especially when it comes to legal language.

“What insurance companies like to do is they like to use language to take advantage of the people that have a claim against them,” he said. “They will use the contract language that they have in their contracts to confuse people. We don’t want the people of Tucson or the people of Arizona to get taken advantage of by that sort of confusion that the insurance companies use. It’s a regular tactic that they like to use.”

Today, as a personal injury lawyer for Rafi Law Group, Barraza walks clients through the legal system during what is probably one of the worst times in their lives.

“We’re here to make sure that we can decipher what the insurance company is saying to the (client), and so we can properly represent their claim so that they do get the proper recovery that they deserve. That’s why I do this. I want to make sure that I protect the people of Tucson.”

It couldn’t happen, however, without Brandon Rafi, the lawyer who is on just about every bus and billboard in town, even though his main office is in Phoenix.

Since Rafi became a licensed attorney in 2014, he has grown his business to 200 staff and 22 attorneys. The reason, he said, begins with specializing.

“What’s unique about us is that we only practice personal injury,” Rafi said. “We don’t practice some of the other areas: bankruptcy or family or criminal law or immigration. We focus only on personal injury.”

Still, it’s not what he set out to do. He simply wanted to be a good attorney.

“I want to do a good job,” Rafi said. “I want to give good legal advice, good care, compassion to the clients.”

It’s all based on one foundation.

“We just believe that everybody should have access to good legal counsel, quality legal counsel,” he said.

He asked himself a couple of questions.

“How do you do that? What are the normal problems that people have with law firms? I tried to study, what is the biggest complaint clients have and how do you alleviate that? I’m looking at that and thinking, ‘How do I innovate the law firm?’”

Rafi never worked at another law firm. It worked

to his advantage, he said.

“I guess I never developed any of the habits that maybe an antiquated system had or maybe an old-school-type system had,” he said. “I started fresh as a law firm, and being straight out of school, I came up with my own concepts.”

One of those concepts is communication — communication within the firm, but equally important is communication with the client. It is the highest priority at Rafi Law Group; it’s one of the issues he said he felt people complained about the most. Therefore, Rafi attorneys strive to keep their clients informed.

“When somebody’s going through a legal issue, that’s the scary part, right?” Rafi said. “It’s being in the dark about knowing what to expect, not knowing where this is going. As an advocate, an attorney should want to keep the client totally in the process.”

To that end, there is never a time when someone will not answer the phone — even at 3 a.m. The phone is not enough, though. Rafi quickly realized that people communicate in lots of ways.

“We also have text messaging apps so that people can communicate because so many of us now communicate through text messages,

BUSINESS CALENDAR

Marana Chamber of Commerce

Marana Chamber of Commerce o ers a slew of events for its members. Some of them are listed below. For more information about joining, visit maranachamber.com.

Members can register for these events at the same site.

• e chamber will celebrate the three-year anniversary of Achieve Strength & Fitness from 3 to 4 p.m. Monday, Jan. 30. A ribbon-cutting ceremony will be held at 3:30 p.m. at Achieve Strength & Fitness, 8235 N. Silverbell Road, Suite 175, Tucson.

• Business Connection Luncheon is scheduled for 11:30 a.m. to 1 p.m. Tuesday, Jan. 31, at e Highlands at Dove Mountain, 4949 W. Heritage Club Boulevard, Marana.

• e chamber will host a ribbon-cutting ceremony for Apex Network Physical erapy’s one-year anniversary at 12:30 p.m. Tuesday, Jan. 31, at 13892 N. Sandario Road, Suite 140, Marana. e celebration is from noon to 2 p.m.

• Marana Mornings will be held at Barn Fire Mesquite Grill at 7:15 a.m. Wednesday, Feb. 1. Join the chamber for co ee, breakfast and networking. is well-attended meeting is held on the First Wednesday of every month and begins with a networking reception at 7:30 a.m. and breakfast. Bring business cards and brochures and showcase an “elevator speech” to business peers.

• Marana Insights is scheduled for 8 a.m. ursday, Feb. 23, at Northwest Fire Training Facility. More information coming soon.

• e Fourth Tuesday Mixer

will be held at the Ed Stolmaker Building Dedication at the chamber at 3:30 p.m. Tuesday, Feb. 28, at 13251 N. Lon Adams Road, Marana.

Tucson Metro Chamber Tucson Metro Chamber hosts myriad programs for members. To join or for more information about members-only events below, visit tucsonchamber.org.

• Emerging Leaders is set for 4 to 5:30 p.m. Wednesday, Feb. 1. e Emerging Leaders is a diverse class of 30 upwardly mobile, under-40, top-performing professionals who support the mission of the Tucson Metro Chamber to “champion an environment where your business thrives and our community prospers.” e chamber de nes “emerging leaders” as those individuals at the cusp of impact, already leading in their industry/organization, and looking to make a greater impact in the future of Southern Arizona.

To face the current opportunities and challenges of the greater Tucson region, the Tucson Metro Chamber designed a ve-year leadership program to identify, develop and support young leaders as they emerge to become community leaders through direct service opportunities and professional development.

Emerging Leaders was founded in 2014 as the Emerging Leaders Council under the leadership of Ben Korn, Melissa Dulaney-Moule and Whitney istle and is supported by the Tucson Metro Chamber’s executive team

EMAIL DETAILS FOR YOUR BIZ EVENTS TO CHRISTINA@TUCSONLOCALMEDIA.COM

Casa de los Niños names Nora Navarro-Hernández as CEO

Casa de los Niños, which provides health and human services to children and families in Southern Arizona, has named Nora Navarro-Hernández as its new chief executive officer.

She brings 30 years of experience in behavioral health and social services, as well as a deep commitment to ensuring the most vulnerable children and families have access to quality care and support.

As CEO, Navarro-Hernández will help guide strategic planning and program development; lead retention and recruitment of high-quality staff and leadership; advocate at the local, state and national levels for policies and programs that will benefit the children and families Casa serves; participate in pursuit of contracts and grants, active fundraising and endowment building; nurture and build strong community partnerships; and help to usher in Casa’s 50th anniversary in 2023.

Navarro-Hernández succeeds Susie Huhn, who successfully led the organization for the last 18 years and is retiring as CEO this month.

Navarro-Hernández comes to Casa de los Niños from CODAC Health, Recovery & Wellness, where she has served on CODAC’s executive leadership team for the last 17 years, most recently as senior vice president of compliance and outcomes.

Prior to CODAC, she was deputy director of Pilsen-Little Village Community Mental Health Center, a large community-based, multiservice, mental health organization in Chicago. She has also been a CARF (Commission on the Accreditation of Rehabilitation Facilities) surveyor for over 20 years.

Navarro-Hernández assumed her responsibilities on Jan. 17.

Sarah A. Kobeissi elected to join Snell & Wilmer’s partnership

Sarah A. Kobeissi has elected to join Snell & Wilmer’s partnership, effective March 1. Kobeissi focuses her practice on commercial finance. She primarily represents regional and national banking associations in commercial lending, finance and real estate transactions for acquisitions, development, longterm and construction (both upfront and pari passu equity funding) loans. Specifically, Kobeissi assists with financing acquisitions and development projects for homebuilders; single-family housing subdivisions; condominiums; townhouse projects; apartment buildings; and commercial buildings such as industrial and distribution buildings, shopping centers, office complexes and retail centers. She has experience with refinancing, redevelopment and rehabilitating as well as build-torent financing, lot banking transactions and financing based on negative pledge facilities.

Sarah A. Kobeissi

Will Tucson benefit from Super Bowl LVII?

By Jimmy Magahern Inside Tucson Business Staff

The last time the Super Bowl was played in Glendale in 2015, hotel occupancy in metro Tucson went up 11% in January and 5% in February over the previous year.

The reason, according to Visit Tucson, the marketing organization for the city of Tucson: spillover impact from guests opting to stay in Tucson over Phoenix.

This year, with many hotels around metro Phoenix, including those managed by the major chains like Hilton, Marriott and Holiday Inn already sold out for Super Bowl weekend since December, and even hotels in outer ’burbs filling up, smart visitors are again booking at Tucson hotels and resorts.

“The Super Bowl being in metro Phoenix does have an impact on Tucson,” said Cindy Aguilar, spokesperson for Visit Tucson. “The event creates compression in metro Phoenix, and that increases demand in Tucson. Much of this benefit is realized well prior to the actual game as leisure travelers and groups that were considering metro Phoenix choose other Arizona locations.”

Accordingly, Tucson hotels have historically raised their prices on weekends when the big game is hosted in metro Phoenix. For 2015’s Super Bowl XLIX, also played in Glendale, hotels in Tucson averaged

a 3.4% rate increase in the days booked around the game.

Altogether, that gave Tucson hotels a 10.8% increase in revenue per available room for January and an 8.6% increase for February 2015. But hospitality is not the only industry in Tucson that traditionally benefits economically from a Super Bowl held two hours to the north.

Michael Mokwa, a marketing professor at Arizona State University’s W. P. Carey School of Business, has been studying the gross economic impact of major sporting events in Arizona since 1996’s Super Bowl XXX in Tempe between the Dallas Cowboys and Pittsburgh Steelers. He said the whole state benefits when the big game is hosted in metro Phoenix.

“The broader benefits are that Arizona is constantly featured in promotional materials and most communications, and these are consumed around the world,” said Mokwa, who laments his research does not break down the economic impact by city but instead looks at the state as a whole.

“Given most people stay for at least four days and many travel around the state during their stay, this would be one benefit stream for Tucson. Plus, all those who come to the Super Bowl and experience Arizona indicate very favorable perceptions, experiences and intentions to come back. Some communities actively try

to create communications and experiences to promote themselves.”

Around metro Phoenix, tie-in “Super Bowl Experience” festivals, set up in Glendale, Downtown Phoenix and Downtown Scottsdale, proved particularly profitable during 2015’s Super Bowl. An estimated 1 million people attended a Downtown Phoenix Super Bowl festival sponsored by Verizon. Additionally, more than 500,000 people enjoyed events in Downtown Scottsdale during the week.

So far, no one has organized a similar tie-in festival for Tucson, outside of the sports bars offering large-screen viewing parties. Even resorts have failed to get in on the big

than the difference in cost between the hotel rates in Phoenix.

It would certainly be in the best interest of Tucson business owners to try to capitalize on the city’s relative closeness to this year’s Super Bowl. Mokwa said the total economic impact of 2015’s Super Bowl XLIX to the state of Arizona was $719.4 million. That figure takes into account “the direct amount of spending by visitors and organizations arriving from outside the state to participate in or create events directly related to the Super Bowl, as well as the indirect and induced impacts of those expenditures, often described as ‘ripple effects.’”

Super Bowl LVII is played, and one of the great ways we can do that is by planting trees,” said Jay Parry, president and CEO of the Arizona Super Bowl Host Committee in a statement. Additionally, the city’s reputation may easily draw day-trippers from Phoenix in the days leading up to and after the big game.

game. Aguilar said she’s not aware of any Tucson hotels offering transportation up to Phoenix for the weekend.

“My gut says none are, but I could be wrong. It is entirely possible that a group traveling together would do that, though.”

Rally, a “crowd-powered” bus ride-share company that partners with local charter bus companies to provide group transportation to special events, is offering roundtrip rides from the Tucson El Con Mall Target to the Super Bowl in Glendale for $120. That means people attending the game in Glendale could book a stay in Tucson and take a party bus to the game and back for considerably less

One ripple effect that will definitely be felt in Tucson is the NFL Green project that was held in December as a tie-in to Super Bowl LVII. Partnering with the Arizona Super Bowl Host Committee, 50 members of the committee’s volunteer program worked to plant 100 low water-usage trees at the El Rio Acres neighborhood, an area that had less than 7% tree canopy coverage. The project more than doubled that tree coverage, creating an environment lush with velvet mesquite, desert willow and oak trees that will combat the urban heat zone effect and give the disadvantaged community an edge against climate change.

“We are excited about the project in Tucson because as the host committee, one of our goals is to leave a positive legacy long after

The New York Times recently named Tucson as one of the “52 Places for Travelers to Visit in 2023,” singling out the Barrio Viejo neighborhood as having “one of the most diverse racial, cultural, religious and ethnic populations in the country,” and noting it was on tap to receive National Historic Landmark designation this year. “The area of more than 150 acres in Tucson is the largest barrio in the United States and exemplifies Tucson’s connection to Mexico, with centuries-old Sonoran adobe architecture,” the Times said.

As it happens, Tucson may not need the added visitors on this particular Super Bowl weekend.

“Interestingly, this year’s Super Bowl falls during the last week of our annual Tucson Gem, Mineral and Fossil Showcase, the largest event of its kind held in our city each year,” Aguilar said. “Tucson hotel and resort occupancies are traditionally at their highest point then versus any other time of year. So ironically, there is not that much room to grow over these dates — Super Bowl or not.” ITB

right?” he said. “We try to stay active on social media. A lot of the newer population, newer generations, they are adamant that they want to communicate through social media, so we’ve tried to make that possible.”

Rafi accommodated that need with a team who monitors the firm’s social media and gets messages to the right people.

Most of the firm’s cases, more than 90%, in fact,

are from motor vehicle accidents, according to Rafi, which makes for an even more specialized client.

“We represent the non-negligent party,” he said. “A normal case for us is somebody driving their car, and through no fault of their own gets in a wreck. That person now has injuries.”

Still, it’s not a factory, even if he’s seen 30,000 cases go through his firm.

“At the end of the day there’s no typical case,” Rafi said. There are even repeat

customers.

“Close to 50% of our clients are return clients or were recommended by family to come seek our representation,” Barraza said. “We’re very proud of that.”

Rafi is also a UA graduate but attended law school in Phoenix. He realized while doing his undergraduate work that he really enjoyed, and got satisfaction from, helping others.

“It makes me feel great about working,” he said. “When you have the opportunity to help people

and also start a business and start a profession and be professional doing that and guiding people through these kinds of complex issues, to me it was really easy. I found the passion for it very quickly.”

Thus Rafi Law Group was born.

Rafi no longer takes cases; those go to one of the other 22 attorneys in his firm. He still works 12 hours a day, Monday through Saturday. He manages the business operations, does marketing, all the administrative stuff that keep the doors open and the name Rafi top of mind. He still loves the law, but owning a business of this size requires flexibility.

“I love the business side of it,” he said. “It’s a different role that’s required of me now. ITB

Cox completes mobile launch in Arizona

By Inside Tucson Business Staff

Cox Communications launched Cox Mobile, the company’s mobile phone service, to Cox Internet customers in Arizona.

With unlimited talk and text and no term agreements, Cox Mobile customers have access to two data plans — Pay As You Gig and Gig Unlimited.

Customers also have access to a network with unbeatable 5G reliability, as well as the ability to stay connected with Cox Internet at home and with more than 4 million of Cox’s on-thego Wi-Fi hotspots.

“The convergence of

wired and mobile communications has never been more important. Customers recognize Cox as a reliable provider of connectivity, so introducing a mobile phone offering was a natural extension of our services,” said Lisa Lovallo, Southern Arizona market vice president.

“With Cox Mobile, we are offering a new mobile phone option for consumers, one that offers flexibility, reliability and the opportunity to save money.”

Customers interested in learning more about Cox Mobile can visit their nearest Cox retail store, go directly to cox.com/mobile or call 1-800-234-3993. ITB

(Rafi Law Group/Submitted)

Brandon Rafi founded Rafi Law Group.

Hobbs talks education and water protection

By Katya Mendoza Inside

Arizona Gov.-elect Katie Hobbs presented an encore State of the State address at the Tucson Convention Center on Tuesday, Jan. 10.

Hobbs outlined her top priorities, including investment in public education, lowering costs, securing the state’s water future, and tackling the affordable housing crisis.

“The people of Arizona have directed us to find solutions to these issues,” Hobbs said.

A self-proclaimed believer in the “power of prosperity,” Hobbs said her administration was committed to building a thriving and dynamic foundation for businesses and the people who make them run, also noting cutting-edge companies moving to the state, offering healthy business environments and a top-tier workforce. “Companies have record job openings, but far too many Arizona residents can’t afford increased rent,” she said.

The governor also called out the state’s failure to adequately invest in public education, which has resulted in high teacher vacancy rates. “One in 4 teachers leave Arizona schools each year, the highest rate in the nation,” she said, calling the state’s problem not with K-12 schools but a “retention crisis.”

Hobbs called upon

legislators to override the Aggregate Expenditure Limit, which limits how much K-12 schools are allowed to spend annually.

In response, Hobbs stated that she will launch an education retention task force to develop a framework and make recommendations to improve class sizes, resources, working conditions and other factors that would put the state’s education system on a path toward finding solutions and retaining educators.

Addressing Arizona’s per-pupil funding approach, Hobbs said that her tentative budget will redirect $68.6 million to all schools across the state, also asking for transparency of schools that accept public dollars by participating in the auditor general’s annual school district spending report.

Hobbs mentioned the overwhelming caseload of school counselors throughout the state, who provide services for over 700 kids on average.

“That is the highest ratio in the nation and nearly three times the recommended standard,” she said. “We must do better.”

The governor also called for investment in state community colleges and dual-enrollment programs statewide to offer students opportunities to earn college credits or get a good-paying job and the expansion of the Arizona Promise Scholarship

program, which made college more affordable for over 4,000 families last year. Hobbs proposes an additional funding capacity for over 10,000 students and allocating $40 million to create a Promise for DREAMers Scholarship program.

“We need to work together to ensure Arizona’s higher-education opportunities are the best in the nation and put individuals on the path to future prosperity,” Hobbs said, taking the opportunity to state the flip side of prosperity is the high cost of housing.

The Hobbs administration shared its support for the $150 million investment into the Housing Trust Fund as well as signing an executive order reinstating Community Council on Homelessness and Housing, which coordinates state and local agencies and helps identify solutions for individuals and families experiencing homelessness and housing affordability as well as offering support to those struggling with the rising costs of everyday items and services.

Hobbs’ budget also sets aside $50 million for a state-level child tax credit for families who earn less than $40,000 a year to help pay for basic necessities and exempt diapers and feminine hygiene products from the state’s sales tax.

“These everyday items add up, and we can and

should help provide this relief to individuals and families who too often must choose between paying their bills or paying for the things they need to be healthy,” Hobbs said. Hobbs, whose stance on immigration includes working with local law enforcement, nonprofits and community leaders, has also invited Homeland Security Secretary Alejandro Mayorkas to visit the border and meet with community leaders.

In addition to protecting reproductive freedom for her constituents, Hobbs shared that her budget would match the federal Title X money that the state receives to pro-

Hobbs plans to reestablish the Governor’s Energy Office and relaunch the Governor’s Office of Resiliency to focus on water, energy and land-use solutions. Additionally, the office will collaborate with local organizations, tribal governments, universities and various state departments.

vide reproductive health services and family planning medication, about $12 million to impact low-income women.

The governor brought home her speech regarding the protection of the state’s most precious resource, being water and how bipartisan solutions are crucial.

Earlier this month, the Colorado River Tier 2 mandatory water cuts went into effect, reducing Arizona’s water allotment by about 21% this year.

“This should be a wake-up call for all of us,” Hobbs said. Arizona will face the largest cut, 592,000 acre-feet of water.

The administration also plans to issue an executive order to launch the Governor’s Water Policy Council to “modernize and expand” the Arizona Groundwater Management Act, Hobbs said. Her budget, which was released Friday, Jan. 13, included “targeted investments” such as a one-time $333 million general fund deposit into the Long-Term Water Augmentation Fund and other investments spanning across fiscal years 2024 to 2025.

Hobbs hopes to allocate funds to rural communities to set up Active Management Areas, a program to help “balance” and recharge the state’s water table.

“These challenges will not be easy,” Hobbs said.

“Nor will the other issues we need to confront, including fixing prisons, improving accessibility for all Arizonans, lowering child care costs, supporting veterans, protecting older and vulnerable Arizonans, and so much more.”

Hobbs’ budget can be found at azgovernor.gov.

Tucson Business Staff

(Kevin Van Rensselaer/Tucson Metro Chamber/Contributor)

Arizona Gov. Katie Hobbs presented an encore State of the State address on Tuesday, Jan. 10, at the Tucson Convention Center.

Fox redevelopment project makes headway

By Katya Mendoza Tucson Local Media Staff

The Fox Tucson Theatre Foundation closed two significant real estate transactions for its major property expansion project.

The transactions mark a major development toward its vision to completely revitalize and transform the northwest corner of Stone Avenue and Congress Street.

“The opportunity to purchase these adjacent properties presented a oncein-a-lifetime, seize-the-day moment to invest in the long-term future and ultimate sustainability of the Fox,” said Nancy March, Fox board expansion committee chair, in a statement.

Recently, the foundation closed on the purchase of the historic theater located at 17

W. Congress from Rio Nuevo Tax Increment Finance District (TIF), in addition to the Arizona Star Building located at 30 N. Church Avenue and the loading dock in between the two properties.

In December, the Fox board of directors unanimously approved the property purchases, new acquisitions including four unoccupied storefronts and the current location of Rae’s Place Downtown Markets.

The board also authorized the “quiet phase of a capital campaign,” with the intention of raising an initial project budget of approximately $21 million over three to five years. The funding goal strives to match the $2 million pledge offered by Rio Nuevo, who voted to forgive the debt of about $2.7 million on the existing Fox Tucson Theatre,

allowing it to finance and create a brand-new upgraded and flexible performance venue, which would include a wrap-around digital marquee, bigger lobby space, expanded ADA accessibility and an outdoor rooftop bar.

Alexander | Carrillo Con-

sulting is engaged with the Fox board of directors to lead the silent phase of the capital campaign along with local

fundraising experts Phoebe Chalk-Wadsworth and Laura Alexander, who will work closely with the board and

staff.

Rio Nuevo’s initial support of debt forgiveness and reassignment of the lease of the existing property placed the Fox in a “very strong position,” said Edmund Marquez, secretary and member of the Rio Nuevo board of directors. “It’ll become more of an event center than just a theater,” he said.

“We’ve set forth a bold vision,” said Brent Davis, the Fox board president. “(It’s) one that we believe will secure the legacy of the Crown Jewel of Tucson as not only an iconic, historic building, but also as a flagship arts organization at the heart of Downtown Tucson.” ITB

(Submitted)

The Fox is set for expansion with the acquisition of two properties, one at 17 W. Congress and the other at 30 N. Church. The sale also includes the loading dock between the properties.

Will corporate tax changes follow personal tax revision?

By Jimmy Magahern Inside Tucson Business Contributor

If “Schoolhouse Rock!” taught us anything (besides how many steps it takes for a bill to get to Capitol Hill), it’s that three is a magic number. Past, present and future. Faith, hope and charity. Person, partner and baby, et al.

But for Arizona tax policymakers, the new magic number is 2.5.

Arizona’s new flat tax rate, which took effect on Jan. 1, set an across-theboard rate of 2.5% for all taxpayers, replacing individual brackets based on income. Now Republican lawmakers are backing a bill, HB 2003, to reduce income tax rates for Arizona corporations from its current 4.9% to 2.5% by 2026.

Proponents of the 2.5% flat tax rate on personal income say it’s a win for every state taxpayer. Even those in what was the lowest tax bracket (before the four brackets got whittled down to two in 2022 and effectively eliminated this year) will see their rate drop from 2.59% to 2.5%.

But basic math tells us Arizonans with the highest income will benefit the most. Those with an annual income above $512,000 will see their rate drop from 4.5% to 2.5%, generating an average tax benefit per household of just over $30,000. Meanwhile, Arizonans earning less than $21,000 annually will save around three bucks.

“The new flat tax rate will overwhelmingly benefit

the wealthiest households,” said David Lujan, a former Democratic member of the Arizona House of Representatives (2005-11) and Arizona Senate (2012-13) who now serves as CEO of the nonprofit Children’s Action Alliance, an affiliate of the Arizona Center for Economic Progress. “(About) 90% of the tax cuts that were made through the flat tax will benefit the wealthiest 5% of Arizonans.”

The GOP party-line vote on Jan. 11 by the House Ways and Means Committee to slash corporate tax rates in half will likewise benefit the largest corporations, which proponents, like the bill’s sponsor, Republican Sen. David Livingston, said will entice big companies to create more job centers in Arizona.

“Arizona’s move to reduce taxes substantially really cements its position as a competitive state not only regionally but nationally,” said Jonathan Williams, chief economist with the American Legislative Exchange Council, which recently ranked Arizona third among all 50 states in economic outlook.

But opponents project the cut will result in a $670 million loss in state revenues, cutting funding for public goods that those large corporations also consider when choosing a home base.

“Arizona already had some of the lowest taxes in the country, both individual and corporate, before the enactment of the new

flat tax rate,” Lujan said. “Cutting the corporate tax rate will decrease resources for other things that businesses count on to be successful — things like investing in higher education and job training and K-12 education. I mean, those are big things that companies look at when they’re choosing whether to expand or come to Arizona.”

In the meantime, business owners will already have several new tax law changes to contend with in 2023:

Updated employee tax withholding form

For starters, every Arizona employer is required to issue a new employee tax withholding form (Form A-4) to its Arizona employees by Jan. 31, to allow them to specify withholding at that new 2.5% flat rate, enacted by passage of Senate Bill 1828 by the Arizona Legislature in 2021 but just going into effect this year. If employees elect not to update their old A-4 form, their withholding rate defaults to 2.0, which means they could end up owing money for the 2024 tax season.

Reduced Arizona small business income (SBI) tax

The tax rate applicable to small business taxable income was reduced from 3.5% in 2021 to 3% for 2022. This will affect the income amounts reported on Forms 140-SBI, 140PY-SBI or Form 140NR-SBI on 2022 filings.

Estimated tax payments requirement for Arizona small businesses

According to statements from the Arizona Department of Revenue, “Beginning with tax year 2022, taxpayers filing a Small Business Income tax return are required to make estimated tax payments, if the taxpayer meets the income threshold, and will be subject to the underpayment of estimated tax penalty if any required amount is not made or less than the required amount for each quarter that a payment should have been made.”

AZDOR recommends using Form 221-SBI to determine if the taxpayer is subject to the underpayment penalty and Form 140ES-SBI to compute the required payments.

Repealed individual tax credits

Beginning with tax year 2022, the Pollution Control Credit (Form 315)

and the Employment by a Healthy Forest Enterprise Credit (Form 332) have been repealed. Taxpayers who claimed either of these tax credits and established unused carryover amounts from prior tax years may still claim the carryover amounts for the remaining five-year carryover period allowed by the credit.

New individual tax credits

Also beginning with tax year 2022, Arizona Revised Statute 43-1074 provides for the Affordable Housing Tax Credit (Form 354), a nonrefundable credit for projects in Arizona that qualify for the federal low-income housing tax credit under Section 42 of the IRC. The tax credit may be claimed on either the individual’s personal income tax return or the Small Business Income tax return, if filing.

For 2022 filings, Arizo-

na also allows an individual partner of a partnership and an individual shareholder of an S Corporation a nonrefundable tax credit for the taxes paid by the Pass-Through Entity (PTE) on the individual’s behalf for their share of the income distributed to the partner/shareholder. If there are no taxes due or the allowable credit exceeds the taxes otherwise due on the claimant’s small-business income, the amount of the claim not used to offset taxes may be carried for not more than five consecutive taxable years as a credit against subsequent years’ small-business income tax liability. An individual taxpayer who claims the allowable PTE tax credit on the SBI tax return must also adjust their Arizona Small Business gross income by adding the amount of the tax payment made by the PTE for which the tax credit is claimed. ITB

Pascua Yaqui Tribe plans to build 3rd casino

By Katya Mendoza Tucson Local Media Staff

The Pascua Yaqui Tribe plans to build a third casino near West Grant Road and Interstate 10 following federal approval of the “Old Pascua Community Land Acquisition Act.”

Known as HR 4881, the bill places the culturally significant land known as “Old Pascua” into trust for the Pascua Yaqui Tribe of Arizona. President Joe Biden signed the bill into law Dec. 27.

The “compact-designated area” of approximately 30 acres includes the area south of West Grant Road, east of Interstate 10, north of West Calle Adelanto and west of North 15th Avenue in Tucson, according to the bipartisan-backed bill. It was first introduced by Rep. Raúl Grijalva (D) in July 2021, before passing through Congress toward the end of 2021 and unanimously through the Senate on Dec. 19, 2022.

Sacred and ceremonial grounds that have belonged to the Pascua Yaqui Tribe since 1921, include the adobe chapel at the west end of the Pascua Cultural Plaza as well as the abandoned Century Park 16 movie theater, a prospective location for the third casino.

“The department of the interior still needs to take the land into trust, a process that could take six to 12 months,” said Kim Van Amburg, chief executive officer of Casino Del Sol.

The Pascua Yaqui Tribe owns and operates two casinos, Casino Del Sol and

Casino of the Sun; a potential third casino would create approximately 500 to 600 jobs and invigorate the intersection, Van Amburg said.

“To have a casino at Grant and I-10, close to central Tucson (and) a lot of people, is going to be a game changer for the tribe and also a benefit to that intersection in terms of the vibrancy of it,” Van Amburg said.

“That piece of property where the church is at, I think, was set aside a long time ago by our ancestors and started doing ceremonies there for hundreds of years,” said Pascua Yaqui Chairman Peter Yucupicio, who was born and raised in the Old Pascua area.

Yucupicio said that Yaquis from many different commu-

nities visit the church property to practice their faith and culture.

“I think it’s a great opportunity for us to continue working together, providing not only for Yaqui but for a lot of members that live in the west side or in Tucson to come help us build their economic base,” Yucupicio said.

Alfred Urbina, attorney general for the Pascua Yaqui Tribe, has worked with the tribal council on the “gaming compact” that flows from the Indian Gaming Regulation Act 1988. That lays out how the state of Arizona and tribes in Arizona will work out how Indian gaming will occur in the state. It also identifies how many table games, slot machines or casinos each tribe has.

“Gov. (Doug) Ducey initiated these compact negotiations in 2016, and it took us until 2021 as a group of tribes, the governor and Arizona legislative body to work out this compact,” Urbina said.

While tribal members look forward to the potential economic development, Urbina said that the church prioritizes it, culture, language and preservation of the community.

“It’s almost like a restoration or a renaissance, now that we have an opportunity to go back and protect some of our churches and communities and provide either jobs (or) housing,” Urban said.

(Katya Mendoza/Staff)

Pascua Yaqui Tribe Chairman Peter Yucupicio and Alfred Urbina, attorney general for the Pascua Yaqui Tribe, at the Casino Del Sol.

D2 Dispensary marks new location’s grand opening

By HOPE PETERS

D2 Dispensary has found a new home, quadrupling its space from its previous location.

Now found at 7139 E. 22nd Street, D2 Dispensary is the largest facility of its type in Arizona and features Tucson’s first drive-thru.

The building is 13,510 square feet, but 9,100 of it is licensed space, according to Moe Asnani, the co-founder of Downtown Dispensary and D2.

“The rest of it is back offices, a break room, things like that,” Asnani said. “Goodwill (store) used to be here, and we took it over in early 2021 and started working on it then, so everything you see here has been about two years’ worth of remodeling and work to get it where it is now.”

The former location was 2,889 square feet. The company employs more than 220 people. The new D2 location is 250 feet away from the original location at the northeast corner of Kolb Road and 22nd Street in the Palo Verde Plaza.

When remodeling the space, crews kept the donations drop-off area, which was converted to a dispensary indoor drivethru on the building’s west side. Per the city, crews installed exhaust systems. The drive-thru’s clearance is 7 feet.

Thomas Sayler-Brown was the designer/architect

for the new dispensary.

“Thomas Sayler-Brown has been an architect for 40 years,” Asnani said. “This was his last project before he retired. I had to convince him; he was trying to retire and I said, ‘No, please do this last one.’ So he did it, and then he retired.”

Co-founder Chip Boyden said they started the business in 2010 and then received their license for the Downtown dispensary for medical-use cannabis in 2012. D2 Dispensary was purchased once they had the license in 2016 and opened in 2017.

“The amount of products has increased dramatically since this last year. … There are way more options for patients and consumers,” Boyden said.

As the cannabis industry grows and more “people realize its longevity,” they will invest in more products, he explained.

Slated to be added are D2’s own THC drink, Elevado, within the next few months.

“I think the drink space is relatively small, but it is getting larger,” Boyden said.

It comes on the heels of the Rick Simpson Oil gummy, a solventless gummy that has been very successful, Boyden said.

“The RSO we are putting in there is really high quality,” added Quinlan Ammons, D2’s general manager.

“Every ingredient we put in there is high qual-

ity. We don’t skimp on expenses when it comes to our ingredients.”

Boyden said, in addition to the RSO gummy, two of the most popular products they’ve launched are the Roaring ’20s prerolls and Zenzona.

The Roaring ’20s prerolls are 20% THC sativa

strain flower; Zenzona are vegan cannabis gummies designed for relaxing. The latter are made in Tucson.

The dispensary celebrated its grand opening during a ribbon-cutting ceremony, officiated by Tucson Metro Chamber ambassador Kat Robey.

“Congratulations, this is

before reading and presenting the Tucson Metro Chamber proclamation.

“‘We wish to congratulate D2 Dispensary on the grand opening of their new location,’” Robey read. “‘We present this proclamation, which carries with it 100 years of good fortune, on this 10th day of January 2023.’ Signed by Michael Guymon, president and CEO of the Tucson Metro Chamber. Congratulations.”

Drivers and any passengers purchasing cannabis must present ID. The 22nd Street store includes a consultation room so customers can receive help choosing the cannabis product that fits them best.

D2’s new space also includes a new medical VIP area for Arizona medical marijuana patients for more privacy and comfort.

Prepacked goods are dispensed in child-resistant containers and exit bags.

Mari Perez, who staffs the concierge and checkin desk, welcomes clients and directs them to products. She has been with the D2 Dispensary for four years and said she sees a lot of good progress with the dispensary.

a huge, huge day. I am really glad to be here for the Tucson Metro Chamber ambassadors,” Robey said

D2 Dispensary

“I am so proud of everybody, just to see how far we’ve come,” Perez said.

“It’s a true blessing.” ITB

Tucson Local Media Staff

(Hope Peters/Staff)

D2 Dispensary general manager Quinlan Ammons accepts the Tucson Metro Chamber’s proclamation plaque.

BUSINESS CALENDAR

and its board of director. e Emerging Leaders leadership program began the changes to its current form in 2021, and 2023 will begin its inaugural year as a leadership transition program, building on the program’s core program activities.

e Public Policy Council will meet from 8:30 to 9:30 a.m. Friday, Feb. 3. e Public Policy Council is comprised of members engaged in public policy analysis. Council members represent various business sectors and support the public a airs department in assessing the policy objectives of the Tucson Metro Chamber.

e group engages in discussions focused on pro-business initiatives at

the local, state and federal levels. Topics range from economic development and growth to transportation and health care. e Public Policy Council aims to strengthen the relationship between the chamber and its members by collaborating about how the chamber can better advocate for business-friendly policies and in uence the decisions made by our elected o cials. is council forwards policy recommendations to the board of directors for approval, including the development of an annual public policy agenda. Councilmembers are appointed to serve on the council by the Tucson Metro Chamber Board of Directors.

• Chamber XChange is set for the Assistance League of Tucson from 4 to 6 p.m. Wednesday, Feb. 8. At the event, chamber members have

a chance to win a dining gi card from a member of the Tucson Restaurant Advisory Council.

• Coalition Against Retail e (CART) Meeting is 2 to 3 p.m. ursday, Feb. 9. e Tucson Metro Chamber reengaged the Coalition Against Retail e a er numerous reports of issues with retail the and vandalism in and around businesses in Pima County.

CART brings together business owners and law enforcement partners to brainstorm solutions to the issues businesses are facing. CART’s goal is to help create meaningful policy changes and arm business owners with information on how to protect their businesses and employees and assist in the prosecutorial process to hold thieves and vandals accountable.

• From 8:30 to 9:30 a.m. ursday, Feb. 16, the Construction/Design Roundtable will meet. Each month, it invites two guest organizations to present topics that address immediate labor needs of the industry and/or create pipelines with kindergarten to 12th grade students into the industry. Chamber members receive free access to attend the roundtable.

• Tucson Restaurant Advisory Council (TRAC) meets from 3 to 4 p.m. Tuesday, Feb. 21. e council’s mission is to unify Tucson’s restaurant voice.

e chamber provides TRAC and its members with access to local elected and public o cials, giving restaurant operators a platform to directly interact with policy makers and enforcers. TRAC is Tucson’s only

restaurant-speci c advocacy group. With support from the chamber, TRAC projects the restaurant industry’s voice and opinions on policy issues.

Additionally, the chamber educates TRAC members on issues and topics relevant to successfully operating a restaurant. is includes conversations with experts in HR, accounting and taxes, legacy planning and code compliance.

TRAC members are also able to learn from the best in the biz. Enjoy opportunities to interact with Tucson’s legacy restauranteurs and operators. Be part of a group with decades of experience.

• e Ambassador Committee Meeting is from 8:30 to 9:30 a.m. Wednesday, Feb. 22. e ambassadors strive to ensure a best-in-class member

experience so all chamber members realize the value of their investment, promote collaboration for business growth and success and develop meaningful professional relationships. Ambassadors meet monthly and are an extension of chamber sta to engage, celebrate and promote members. ese individuals you will nd at mixers, ribbon cuttings and volunteering at events

• From 8 to 9 a.m. ursday, Feb. 23, the Health Care Roundtable will meet. It invites two guest organizations every month to present topics that address immediate labor needs of the industry and/or create pipelines with kindergarten to 12th grade students into the industry. Chamber members have free access to attend the roundtable. ITB

REAL ESTATE & CONSTRUCTION

Real estate transactions

By Inside Tucson Business Staff

The Pima County Board of Supervisors voted 4-1 Jan. 10 to approve a new lease with southside aerospace firm World View. The new lease resolves an issue related to lengthy litigation challenging the economic development agreement the county made with World View in 2016 to retain the company in the region.

A conservative think tank in Phoenix, the Goldwater Institute, sued the county a few months after the board approved the agreement six years ago this month, claiming the county violated several state laws.

The county prevailed over the past five years on all but one of the claims. Goldwater succeeded late last year on the final claim, when the state court of appeals ruled that the portion of the agreement allowing World View to take over the headquarters and manufacturing building at the end of the lease’s 20-year term for a nominal sum violated the state’s Gift Clause. The county argued to the court that the acquisition of the property by World View was not a gift because taxpayers would have essentially realized a $4 million “profit” over the county’s manufacturing and financing costs over the life of the lease. The court disagreed.

“This revision of the

World View lease should put to rest years of legal wrangling over how Arizona counties can participate in economic development activities and business retention,” said Jan Lesher, county administrator.

“Having prevailed on three of Goldwater’s four claims, and Goldwater on the fourth, we and all the other counties in the state now know where the lines are drawn, which is the silver lining in this costly dispute.”

The new 20-year lease is broken into five-year renewable increments and sets the lease rate at 90% of market rate, which is specifically authorized by state law. It also gives World View the option to buy the property within the next two years at 90% of the appraised value, which is also allowed by statute.

“The reason Pima County entered into this agreement in 2016 is the same reason the board agreed to this revised lease — to retain a high-wage employer in Pima County that will employ over 100 people with average salaries of $80,000 once fully operational,” new board Chair Adelita Grijalva said.

World View is in the county’s Aerospace Research Campus south of Raytheon. It will soon be joined on the campus by American Battery Factory, which

plans to build a $1 billion lithium battery manufacturing facility. World View uses high-altitude balloons to lift so-called stratollites carrying technology payloads that perform a variety of functions. It also intends to lift tourists in a capsule to near-space heights. The World View lease is structured similarly to the American Battery lease, which the board approved last month. Both leases reflect the settled legal issues of the World View lawsuit.

Also, the board decided not to appeal the Gift Clause decision to the state Supreme Court, ending the lawsuit.

Leases

Christie’s Appliance has signed a lease for 10,000 square feet at 3562 N. Oracle Road, Tucson, at the southeast corner of Oracle and Prince roads. The new warehouse will be used to house the company’s overstock of merchandise.

Craig Finfrock of Commercial Retail Advisors LLC represented the tenant, Christie’s Appliance LLC, and the landlord, The Prince of Oracle LLC, was represented by Kevin Volk of Volk Company in this transaction.

Commercial Retail Advisors, founded in 2001, specializes in the leasing and sales of shopping centers and retailer tenant

representation throughout southern Arizona.

PCRK AZ Tucson Spectrum 1211 LLC, dba Massage Envy, leased 3,000 square feet at the Tucson Spectrum, located at the SWC I-19 and Irvington. Ben Craney and Jayme Fabe with NAI Horizon represented the landlord and Chris Ray with Catalyst Commercial Group represented the tenant in this transaction.

Jeramy Price of Volk Company represented the tenant Café Blanco LLC in its lease of 2,550 square feet at 6444 N. Oracle Road from Plaza Del Oro LLC for use as a restaurant. David Carroll of Romano Real Estate represented the landlord.

Joey Castillo of Volk company represented the landlord, SCG-Northpointe LLC, in the lease of approximately 2,400 square feet located at 6781 Thornydale Road, Suite 219, to 818 Fitness LLC.

Rick Borane of Volk Company represented the tenant Desert Dermatology PLLC in the lease of approximately 2,272 square feet at 1521 E. Tangerine Road, Suite 161, from Oro Valley 1521 APL MP LLC. The landlord was represented by Andrew Sternberg of Remedy Medical Properties

Inc.

Dave Volk of Volk Company represented the landlord Tucson Mountain Medical Management Building Associates LLC in the lease of approximately 1,765 square feet located at 1773 W. St. Mary’s Road, Suite 130, to Infuseable Healthcare LLC. Avison Young Arizona Ltd. represented the tenant in this transaction.

Jeramy Price of Volk Company represented the landlord 2130 N. Kolb LLC in its lease of an approximately 1,650 square foot restaurant on 0.5 acres of land at 4300 Coors Boulevard SW, Albuquerque, to Betico LLC. The property will be redeveloped into a Filiberto’s Mexican restaurant with a drive-thru.

Andreas Castillo and Jeramy Price of Volk Company represented the landlord Ideal Pima Holdings in the lease of approximately 1,647 square feet at 5656 E. Pima, Suite 120, to MK Aesthetics & Wellness LLC for use as a medical spa.

Jeramy Price of Volk Company handled a lease between ONETEN REI MAIN LLC as landlord and SmoothieMap3 LLC as tenant for an approximately 1,600-square-foot building to be constructed at High-

way 92 Quail Run Drive in Sierra Vista for use as a Tropical Smoothie. This is the sixth Tropical Smoothie lease deal Price has handled.

Andreas Castillo of Volk Company represented Tucson Coffee Roasters LLC in its lease of approximately 1,200 square feet at 3933 E. 29th Street, Suite 506, from Pegasus Tucson Owner LLC. The premises will be used as a coffee roasting facility. The landlord was represented by Andrew Keim of Picor.

Andreas Castillo of Volk Company represented Jose L. Torres Jr. and Dale Shawler in the lease of approximately 1,200 square feet at 1870 W. Prince Road from Pegasus Tucson Owner LLC. The premises will be used as a warehouse and office for screen printing. The landlord was represented by Andrew Keim and Rob Glaser of Picor.

Sales

Zena Biotechnologies Inc. purchased the 18,568-square-foot property at 1605-1611 N. Wilmot, Dorado Park Office Plaza, for $1.445 million.

Phil Skillings and Kyle Kilgore with NAI Horizon represented the seller and Juan Teran with Realty Executives represented the buyers in this transaction.

Share information with Inside Tucson Business’ land transactions column. Send items to

Lisa Bayless connects real estate, love of helping people

By Ken Abramczyk Inside Tucson Business Contributor

Lisa Bayless always wanted to help people.

Following that desire, Bayless, who attended Greenfields Country Day School in Tucson, moved to the East Coast to attend college. She graduated with a degree from Bates College in Maine, then earned a graduate degree in social work from Boston University. She also met her future husband, who was a real estate developer in Boston. She assisted him with some of his work on buildings, projects and homes.

That’s when she noticed the connections between real estate and social work.

“I began to understand that there is a considerable amount of overlap between real estate, social work and counseling,” Bayless said.

“I began to understand that real estate is as much about people as it is about the commodity itself. It’s all about understanding what people need, solving problems and finding clients a place that they can call home, which really isn’t that much different from social work.”

Bayless also realized the connection between the real estate market and the community itself. “Real estate is very entwined with the community,” Bayless said. “The health of the community really impacts the value of the local housing market and vice versa.”

Bayless returned to Tucson, landed employment with Long Realty, and began working in real estate in early

2007. She started with Long Realty because of the company’s strong local, national and international presence regarding Tucson real estate. Bayless continued a steady ascent to the top in sales.

“We closed on $88 million in homes sales last year, our biggest year ever,” Bayless said. According to Bayless, that placed her as the top-selling agent at Long Realty and in Northwest Tucson.

Bayless brings her social work background and education into her interactions with clients, taking it to a personal level. She treats each meeting, particularly the first one, like a counseling session. The first question she asks is, “What brings me here today?”

“It’s my goal that the client talks more than me,” Bayless said. “I’m really there to listen and understand what they need,

tate interactions, she said.

The Tucson housing market remains strong, she said, particularly in Marana and Oro Valley. She estimates that half of her clients are local and half out of state.

causes also help Bayless connect to the community, and give her satisfaction in seeing others lifted up by these actions.

what is important to them, and what is driving their decision.” Once she understands that, she creates a plan tailored to their wants and needs. “Everyone is different, so you’d better take the time to listen to them and understand each person’s unique situation.”

Why hire an agent

Why someone wants to sell or buy a home varies depending on personal situations. They may need more or less space. Buyers may be coming from out of state for closer proximity to family members, wanting to retire in Tucson’s desert climate and, with that, a need for social and active adult lifestyle for retirees.

If health is the reason, medical facilities need to be nearby. Understanding each person’s situation and what they are trying to achieve is key in her real es-

Homebuyers or sellers need a real estate agent to guide them through the complexities of the transactions and the process, according to Bayless. Realtors bring expertise and the latest updates on market list prices to list the home at the most accurate price. “A Realtor can help a seller set a market-based price, and a Realtor can certainly advise buyers on the pricing of homes that they are seeing,” Bayless said. “(The agent) can help buyers and sellers navigate the complex process of buying and selling homes, and make that complex process uncomplicated because they have a professional there to help them navigate through, one step at a time.”

Bayless enjoys the people and the ongoing interactions, but it isn’t always happy stories she hears. That inspires her to help them. “When people buy and sell, it’s not always for pleasant and positive reasons in their life. It can also be very sad and sometimes very complicated situations as well, but I find a lot of meaning in whatever their situation may be, being a part of it, helping them walk through it, and achieve the best results that is possible for them. That keeps me going every day.”

Helping others

Donations to worthy

“I think that, in life, you can’t always take,” she said. “You have to give. So, with that said, I give a portion of our commission from each home sale back to the communities I live and work in to strengthen those communities and also assist people within those communities who could use a little help.”

Last year Bayless donated $100,000 from her home sales to local nonprofits. Previous years have seen donations given to pay off lunch debts of public-school students in Oro Valley and another to buy a K-9 dog for the Oro Valley police. In another year, she donated $20,000 to Impact of Southern Arizona, a food bank and resource of other community services, for Thanksgiving dinners to 500 Northwest Tucson residents. She donated $60,000 over two years to STEMAZing, a program administrated by the Pima County superintendent’s office to provide programmable Edison robots to fourth and fifth graders at the Amphitheater school district.

Each kid learns coding and programming by working on these robots.

“I have visited some of the classrooms and watched it, and it’s unbelievable,” she said.

“They will create obstacle courses for their robots. They will do it with music, decorate with art. They

are lying on the floor with their robots, and they have absolutely no idea they are learning to program because they are having too much fun. It’s amazing. I’m so thrilled to see those fourth and fifth graders learn to code. I love that they love it.”

It gives her great satisfaction when she is approached by a mother of a student when she happens to be at a beauty salon.

“When someone approaches me and tells me her child was in a class that received the robots, and that it enhanced her child’s life and prospects, it is very meaningful to me that my efforts to be successful don’t only just benefit me but benefit other people as well. That is very important to me. It helps other people’s lives, and it is a part of something bigger. It makes my community a better place to live, and it contributes to the people who live there, too.”

She is a past board president of the Boys & Girls Clubs of Tucson and currently a senior board member, as well as an active board member of the Oro Valley Chamber of Commerce. She was also appointed an honorary commander of the 68th Rescue Squadron at Davis-Monthan Air Force Base. Her community involvement helps her “to get to know her neighbors and people in the community,” she said. “It contributes to my life; it gives me a community and gives me an opportunity to help others.” ITB

(Lisa Bayless/Submitted)

The Tucson housing market remains strong, Lisa Bayless said, particularly in Marana and Oro Valley.

Tucson’s 1st Ethiopian restaurant, Zemam’s, to expand

By Katya Mendoza Inside

Offering a flavorful variety of Ethiopian cuisine at Zemam’s, the Gebremariam family opened the restaurant’s doors in 1993.

At first only housing five tables, the restaurant soon aligned with the vision of founder Amanuel. The restaurateur is now set to open a third concept in August.

Named Z Street, the international marketplace will offer an enhanced gastronomic experience, with a soccer-pub, coffeehouse, food vendor stalls and a communal kitchen. The concept is preparing to expand its footprint in the Sunshine Mile Overlay district in partnership with the Regional Transportation Authority and Rio Nuevo tax increment district.

“We’re trying to give people opportunities to share their really good food and bring it to the public with the hope that they ultimately outgrow us,” said Lucas Gebremariam, co-owner, manager of Zemam’s Too! on Speedway. He’s also Amanuel’s son.

Lucas and his brother, Noah, who co-owns and manages the original Zemam’s on Broadway, said that there was a lack of a gathering space that wasn’t in the overly saturated Downtown Tucson, Fourth Avenue Area.

When they heard of an opportunity between the city of Tucson and

Rio Nuevo, they contacted Fletcher McCusker, chairman of the Rio Nuevo Board of Directors, and others.

“We just started getting approval from the city on different permits,” Lucas said. While the original Broadway Zemam’s is temporarily closed for construction, they are working on local partnerships for the international square. Looking forward to phase two of the Z Street concept, the coffee house will feature a traditional, Ethiopian coffee ceremony.

“They roast the beans right in front of you and take it around to let everybody smell it,” Lucas said. Similar to a Turkish coffee, served small and strong, Ethiopian style is complemented with a side of popcorn.

With the intention of a “Mediterranean, Middle Eastern market vibe,” as Lucas described it,

Z Street seeks to be an inclusive space made by and for the community. While the story of Zemam’s Ethiopian Cuisine began long before the original opening, it has earned its place as a staple in the Tucson gastronomic sphere.

A refugee from Eritrea, Amanuel fled his homeland over 40 years ago with nothing in his pockets. Prior to settling

in Tucson, he met his wife, Cindy, through the International Rescue Committee (IRC) in Sudan.

They eventually joined the Peace Corps after moving back and forth between the United States and West Africa, after Favin, Lucas and Noah came along. The family headed southwest from Washington, D.C., living for a time in Sells

and moving into the Sam Hughes neighborhood.

palate.

grade,

“I remember picking him up (from work) one day, I was in first or second grade, and he was like, ‘I quit my job today. I’m going to open an Ethiopian restaurant, and everybody’s going to love it,’” Lucas said. “The city really embraced us.”

The family-owned and -operated small and local business on Speedway, Zemam’s Too!, remains in full operation 11 a.m. to 8 p.m. Tuesday to Sunday and 11 a.m. to 9 p.m. Friday and Saturday. The restaurant is run by a staff of refugees.

Zemam’s continues to transcend the local

The vegetarian-friendly menu boasts a variety of dishes, including a sampler platter that has veggie and meat options, starting at $11.75. Other featured favorites are yemisir kay wat — red lentils, sauteed onions and a spicy berbere sauce ($9.25) — and the gomen alicha, with carrots, cabbage and potatoes simmered in a mild turmeric-based sauce ($9.25).

“I tell people there’s something wrong with (their) tastebuds if they don’t like the red lentils,” Lucas said. ITB

Zemam’s

Tucson Business Staff

(Katya Mendoza/Staff)

The Gebremariam family includes, from left, Noah, Amanuel and Lucas.

Restaurant Chains

Ranked by the number of local locations

Ranked information is provided by business representatives at no charge and is ranked alphabetically in case of ties. Other businesses were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings. N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided

777 W.

4 Sonesta ES Suites Tucson 6477 E. Speedway Blvd. Tucson, AZ 85710

(520) 721-0991 sonia.hammrich@sonesta.com www.sonesta.com/tucson

5 Lodge on the Desert 306 N. Alvernon Way Tucson, AZ 85711

on-site restaurants, lobby bar, swimming pool, whirlpool, Precor fitness center, massage therapy, high-speed Internet, business center, 44" flat-screen

All two-room suites, Atrium Cafe, Wilbur's Grill, business center, banquet facilities (13,125 sq. ft.), Cesare's Fine Gift Shop, ATM machine, heated pool and Jacuzzi, guest laundry facility, fitness facility, free WiFi throughout hotel

3 star Let's Get RE:acquainted You’ll find a warm and friendly spirit at our newly redesigned Sonesta ES Suites Tucson—one that elevates your experience to something more than just an overnight stay. Whether you’re here for business or pleasure, we offer more ways to enjoy your stay and perfectly located close to the area’s most scenic sights of beautiful Arizona, as well as prominent businesses. Free daily breakfast, free high-speed wireless Internet, onsite laundry and free parking are all added conveniences to add value, and pleasure, to your stay. And with our fully equipped kitchen you can relax and prepare meals on your own schedule. Come enjoy all the wonderfu amenities that make Sonesta ES Suites Tucson a surprisingly different extended-stay hotel.

6 Holiday Inn Express Tucson Airport 2548 E. Medina Rd. Tucson, AZ 85756 (520) 889-6600 hietusmr@gmail.com hiexpress.com/tucson-airport 98 20 35 kinds 5 handicapped 38 425 0 0 0 3 star

1997 7 Towneplace Suites by Marriott 6595 S. Bay Colony Dr. Tucson, AZ 85756 (520) 294-6677 kate.folstein@marriott.com www.marriott.com/tusta 91 91 169 N/A 0 0 0 0 3 All-suite hotel featuring

wifi, airport shuttle, hot buffet breakfast. Laundry facility. Business center. Fitness room. Outdoor pool. Full kitchens. Pets welcome ($100

(520) 320-2000 sales@lodgeonthedesert.com www.lodgeonthedesert.com

N/A Complimentary Lodge breakfast We have 102 rooms available that showcase the vintage charm of our historic Casita rooms and the modern Deluxe rooms which offer contemporary Southwest décor. Heated pool and whirlpool spa, open daily. Indoor and outdoor event space, perfect for meetings, receptions, and weddings, accommodating up to 200 guests. Snacks, beverages, and Southwestern-inspired items available for purchase in our Gift Shop — perfect for satisfying a late-night craving or grabbing a poolside snack. Same-day laundry service Monday through Saturday. Must drop off at Front Desk by 8:30am. Complimentary onsite parking. Wireless Wi-Fi access throughout the resort.

Full complimentary hot breakfast, free WiFi, complimentary shuttle service to and from the Tucson International Airport, 24-hour fitness room, swimming pool and spa, refrigerator and microwave in every room

ranked alphabetically in case