Inside Tucson Business 123022

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.

ADMINISTRATION

Steve T. Strickbine Publisher

Michael Hiatt Vice President

Claudine Sowards Accounting, claudine@tucsonlocalmedia.com

EDITORIAL

Christina Fuoco, Executive Editor, christina@tucsonlocalmedia.com

Katya Mendoza, Staff Reporter, kmendoza@timespublications.com

Hope Peters, Staff Reporter, kmenhpeters@timespublications.com

Karen Schaffner, Staff Reporter, kschaffner@timespublications.com

PRODUCTION

Shannon Mead Design/Production Supervisor, smead@timespublications.com

Nathalie Proulx Graphic Designer, nproulx@timespublications.com

CIRCULATION

Aaron Kolodny Circulation Director, aaron@phoenix.org

Brian Juhl Distribution Manager, brian@timeslocalmedia.com

ADVERTISING tlmsales@tucsonlocalmedia.com

Kristin Chester Account Executive, kristin@tucsonlocalmedia.com

Candace Murray Account Executive, candace@tucsonlocalmedia.com

Tyler Vondrak Account Executive, tyler@tucsonlocalmedia.com

Gary Tackett Account Executive, gtackett@tucsonlocalmedia.com

NATIONAL ADVERTISING

Zac Reynolds Director of National Advertising, zac@timespublications.com

EDITORIAL & AD CONTENT

Inside Tucson Business expresses its opinion in the editorial. Opinions expressed in guest commentaries, perspectives, cartoons or letters to the editor are those of the author. The content and claims of any advertisement are the sole responsibility of the advertiser. Tucson Local Media assumes no responsibility for the claims or content of any advertisement. Publisher has the right to edit for size or refuse any advertisement at his or her discretion.

City’s economic forecast is sunny — with a chance of strong winds

By Jimmy Magahern Inside Tucson Business Contributor

Contacted on a weekend when Tucson was under a winter weather advisory, George Hammond, director of the University of Arizona’s Economic and Business Research Center, described the city’s economic outlook in suitably meteorological terms.

“Shifting economic winds are buffeting the Tucson economy,” Hammond said, as 20 mileper-hour winds whipped outside the windows of McClelland Hall. “The most likely forecast for the U.S. economy now includes a mild downturn beginning late this year and ending in mid 2023. That is expected to take the wind out of Tucson’s sails, generating a significant slowdown in growth next year across all major economic indicators.”

Nevertheless, Hammond’s forecast included some sunshine. “Even so, the metro area is forecast to outperform the national economy. The labor market remains very tight, with low unemployment, high levels of labor market churn, and a mountain of open jobs,” he added, presumably gazing northward at the Catalinas.

Much like weather forecasters, economists are in the business of trying to predict complex systems that can be twist-

ed in different directions by very small changes.

“Economic developers, by nature, are optimist people. And the last few years have given us a lot of reason to be optimistic,” said Carrie Kelly, executive director of the Arizona Association for Economic Development. “The Tucson area has seen a steady stream of new businesses entering the market and other businesses expanding.”

Kelly said one of the strengths of the Tucson area is the strong partnerships that exist between the economic development community, the business community and higher education partners. “Those partnerships have created innovative new educational programs and workforce development initiatives that will help to drive the Tucson area’s economy for years to come.”

Ian Roark, vice chancellor of workforce development and innovation at Pima Community College, studies which fields those partnerships should focus their attention on.

“From a workforce and economic development perspective, we always look at the quantitative data as well as activity on the ground — that is, who is reaching out to us for talent solutions now and at what rate, and which sectors have elevated activity with respect to business attraction and

expansion?” Roark said. “The answer for us this past year on all fronts has been the manufacturing, logistics and transportation, and health professions sectors.”

Roark sees data-driven projections that show steady growth in these sectors “even with the headwinds of inflation and a possible recession,” and notes that the college has been having more direct employer engagements and partnerships in these areas than in multiple past years combined. “This indicates a need for strategic planning and investments in workforce development and education to help people be ready for the jobs that will result,” he added.

Hammond agrees with Roark that jobs in trade, transportation and utilities have rebounded well, followed by gains in manufacturing, education and health services. “As of October, Tucson replaced 95.4% of the jobs lost during the first two months of the pandemic,” he said, primarily in those sectors. However, he noted that Tucson’s job recovery lags behind the national average in fields like professional and business services, trailed by government, information technology, and leisure and hospitality.

10 New Year’s resolutions for the workplace

2023 is quickly approaching, and many of us are looking for ways to make the next 12 months more impactful by increasing success, becoming more profitable, and taking business to the next level. Check out these resolutions designed for business owners who want to kick-start a successful new year.

1. Fill open positions. Attract new employees by focusing your efforts on one or two highly qualified candidates instead of the shotgun approach of trying to reach hundreds at once. LinkedIn can be a valuable asset for seeking out prospects that fit the job qualifications and personalizing your outreach.

2. Revamp your marketing plan. Many businesses are shifting to digital advertising to reach their audience. Consider hiring a marketing expert to evaluate your current plan and make business promotion a priority. As a reminder, our Tucson Cox Media team are experts at adding visibility to organizations through a wide variety of digital platforms and channels.

3. Increase social media presence. Social media is an inexpensive way to build customer relations and promote your business. Increase your presence by producing more social content and asking questions to engage your followers.

4. Become a mentor. Put your business knowledge and experience to good use by mentoring an intern or hosting a lecture at a local school. You may inspire someone to pursue their dreams.

5. Re esh your website. If you’ve neglected your company website for some time, it’s the perfect occasion to show it some love. Spruce it up with a new design, eye-catching images and fresh content.

6. Give the office a makeover. Ensure your employees have the proper space and technology needed to succeed. In addition, perks such

as coffee bars and catered lunch can lead to employee satisfaction and create positive buzz about your workplace. Stand-up desks are also a fun way to spark productivity.

7. Take more breaks. This year was an extremely busy year for most of us. Make a point to prioritize your mental health in the new year by freeing up time in your daily schedule for a walk around the block to recharge. A healthy work-life balance leads to increased productivity, fulfillment and happiness. At Cox, we have a marked trail around our office, so employees can push away from their desks and get some fresh air, while counting their walking milage.

8. Learn a new skill. Now is the time to map out any business webinars or conferences you’ve been wanting to attend. Pencil in a few events or trade shows throughout the year to network and learn something new.

9. Boost company culture. Treat your employees to a handful of team-building days. I always find that great bonding happens out of the office, along with some great conversations about the business. During the holidays, we had several employees meet to help the neighbors of Winterhaven hang lights to ready the neighborhood for this much-loved holiday tradition. We also brought along a $2,500 donation from our employees for the Community Food Bank.

10. Give back. Nothing grows goodwill for your company better than giving back to your community. At Cox, our employees volunteer more than 4,300 hours each year with many groups in Southern Arizona.

Lisa Lovallo is the Southern Arizona market vice president for Cox Communications. Cox and our employees have donated more than $5.5 million annually to support Southern Arizona nonprofits during a time of need. Learn more about our philanthropic initiatives at coxcharities.org.

PEOPLEINACTION

Jo Ann Golden affiliates with Oro Valley/ Marana Coldwell Banker

Jo Ann Golden has associated with the Oro Valley/Marana office of Coldwell Banker Realty Arizona as an affiliate agent. She comes to the office with nine years of real estate experience.

“I first came into real estate as an investor, but I have loved working as an agent. I decided to affiliate with Coldwell Banker because of its nationwide reach and prestige,” Golden said.

Before working in real estate, she worked in customer service for an airline for 35 years. Active in her community, she serves on the board of Children’s Museum Tucson, which provides a safe and hands-on learning experience for children under the age of 11.

Coldwell Banker Realty in Arizona operates 22 offices with approximately 1,465 independent agents throughout Arizona.

Coldwell Banker Realty is owned by a subsidiary of Anywhere Real Estate Inc., the largest full-service residential real estate services company in the United States.

Info: coldwellbankerhomes.com (no hyphen)

Drs. Valerie Kading and Derek Price promoted at Sierra Tucson

Sierra Tucson CEO Dr. Valerie Kading was promoted to vice president of medical and clinical development at Acadia Healthcare. Dr. Derek Price has been tapped as its new CEO.

Kading has served in leadership roles at Sierra Tucson for seven years. Since joining Sierra Tucson in 2015, she has held the positions of chief medical operations, interim chief medical and chief operations officer. Kading also served as CEO of California-based facilities Sierra by the Sea and Sunrise Recovery Ranch before assuming the position of group CEO for Sierra Tucson.

“The past seven years at Sierra Tucson in various leadership roles, including group CEO, have been extremely rewarding and filled with a relentless pursuit of innovation and driving exceptional patient outcomes,” Kading said.

“Over these past years, I was fortunate to establish and also strengthen many relationships with professionals and leaders in health care. I am beyond thrilled to take this next step in my career as vice president of clinical and medical development at Acadia Healthcare as we focus on further developing world-class mental health and substance use care.”

Kading has been a speaker at many national and international conferences on topics such as adverse childhood experiences, maternal mental health, postpartum depression and trauma-informed care. She earned a Doctor of Nursing Practice from New Mexico State University at Las Cruces, New Mexico, along with a master’s degree in nursing, a Bachelor of Science in nursing, a bachelor’s degree in psychology, and a Master of Business Administration.

Kading will begin serving in her new role with Acadia Healthcare on Jan. 2, when she will be responsible for evaluating and optimizing clinical and medical programming for Acadia’s specialty and acute facilities across the nation.

Incoming CEO Price has spent the past three years as CEO of Desert Hope Treatment Center, a 150-bed detox and residential treatment center that has a partial hospitalization program, an intensive outpatient program and a sober living facility.

During his time as CEO of Desert Hope, Price secured Joint Commission accreditation with a score exceeding 99%. He also implemented leadership training and cultural development programs and led the facility through the crisis created by the COVID-19 pandemic, exceeding both CDC and state safety measures for patients and employees.

Price’s diverse professional background includes playing professional football for the Detroit Lions, opening more than a dozen chiropractic clinics, serving as a leadership consultant and spearheading numerous philanthropic projects.

Info: sierratucson.com

PNC Bank Regional President Mark Mistler retiring

PNC Bank’s Mark Mistler will retire as regional president for Tucson and Southern Arizona effective Dec. 31 following a 38-year career in financial services, 35 of which were spent in Tucson.

Mistler joined PNC in October 2021 through the acquisition of BBVA USA Bancshares Inc., where he led the market for 22 years.

Since joining PNC Bank and becoming regional president and head of commercial banking in 2021, Mistler has been instrumental in delivering PNC’s national main street bank model throughout Tucson and Southern Arizona, expertly leading the company’s banking and charitable activities locally and fueling the growth of PNC’s market presence.

During his banking career, Mistler held multiple roles at Valley National Bank/Bank One before joining Compass Bank in 1999 as Tucson market president.

Mistler has been active in the Tucson community throughout his career, including board leadership and involvement in organizations focusing on economic development, higher education and social services.

Mistler has served on the board of directors for Sun Corridor Inc., the Southern Arizona Leadership Council and is on the Catholic Diocese of Tucson Bishop’s finance council. Previously, he was chairman of the board of the Tucson Metropolitan Chamber of Commerce and served on the boards of the National Board of Advisors for the University of Arizona Eller College of Management, the Diocese of Tucson Catholic Foundation, Sister Jose Women’s Shelter, Tucson Parks Foundation, Junior Achievement of Southern Arizona, and Our Mother of Sorrows Catholic School.

“We are grateful for Mark’s strong leadership,” said Dale Klose, PNC Office of the Regional Presidents Southwest and Mountain territory executive. “His appreciation and deep understanding of the Tucson and Southern Arizona region is truly remarkable. Not only is he a servant leader who prioritizes collaboration and inclusion, but he is also one of the biggest champions of Tucson’s people and communities. We will miss Mark tremendously for who he is and what he has done for the community, and wish him the best as he moves to this next chapter.”

Tucson senior leadership team Elie Asunsolo, Kim Walsh and Dorella Anaya will continue to provide commercial, asset management and retail customers, respectively, with consistent service. In addition, the team will maintain and grow strong relationships with regional organizations to support the Southern Arizona community through PNC’s national main street bank model. Info: pnc.com

Jeffrey Agans affiliates with Tucson-Foothills Coldwell Banker

Jeffrey Agans has associated with the Tucson-Foothills office of Coldwell Banker Realty Arizona as an affiliate agent. Currently, he sells RVs for LazyDays RV and was most recently an agent with Tierra Antigua Realty since 2019.

“Selling RVs is similar to selling homes since they’re just homes on wheels, so I am ready to sell real estate,” Agans said. “I decided to affiliate with Coldwell Banker after being approached by the branch manager Jim Bowman and learning about everything Coldwell Banker has to offer.”

Coldwell Banker Realty in Arizona operates 22 offices with approximately 1,465 independent agents throughout Arizona. Coldwell Banker Realty is owned by a subsidiary of Anywhere Real Estate Inc. the largest full-service residential real estate services company in the United States.

Info: coldwellbankerhomes.com

Mark Mistler

Jeffrey Agans

Le Macaron to open in Downtown Tucson

By Inside Tucson Business Staff

Le Macaron franchisee Happy Cookie LLC has signed a lease for 1,358 square feet at 260 E. Congress Street, Tucson, located near the corner of Congress Street and Arizona Avenue in Downtown Tucson.

The new French pastry shop will sell its signature macarons and will include other items such as gourmet chocolates, French gelato, classic French pastries, European-style beverages and food items, and French gifts. Le Macaron has over 60 locations

nationwide, with many new shops opening soon. This will be the first Le Macaron in Arizona. The new pastry shop is expected to open late summer.

Craig Finfrock of Commercial Retail Advisors LLC represented the tenant, Happy Cookie LLC; the landlord, Tucson5C Hotel LLC, represented itself in this transaction.

Founded in 2001, Commercial Retail Advisors specializes in the leasing and sales of shopping centers and retailer tenant representation throughout Southern Arizona. ITB

FORECAST

“Even so, Tucson’s labor market remains very tight, with a seasonally adjusted unemployment rate near historic lows at 3.8% in October,” Hammond countered. “That was slightly above the U.S. rate of 3.7%.”

Apart from job growth, Hammond is also keeping an eye on inflation. “Inflation remains a key concern, with prices likely rising much faster in Arizona than nationally.” Phoenix is the only metro area in Arizona for which the U.S. Bureau of Labor Statistics publishes consumer price index data, but Hammond says that, at least in certain areas, Tucson tends to follow suite with trends in the capital city. This is particularly evident in housing prices, which

rose 18.2% over the year in the Phoenix area in October, compared to 6.9% nationally.

“Skyrocketing house prices have driven inflation in Arizona well above the national average,” Hammond said. “They have also pushed housing affordability to very low levels in the third quarter of 2022.” According to data from the NAHB-Wells Fargo Housing Opportunity Index, only 40.2% of homes sold in the Tucson area in the third quarter were considered affordable to a family making the median income. “That was down slightly from 40.6% in the second quarter, but well below the national average of 42.2% — and miles below affordability in the fourth quarter of 2019,” when the share was slightly over 71%. As a result, housing permit activity is forecasted to

drop from 6,284 permits in 2021 to 5,472 in 2023, and drop even further to 4,312 in 2024.

Personal income growth in Tucson decelerated from 7.5% in 2021 to 0.5% in 2022, as federal pandemic-related income support ended. However, Hammond expects income growth to rebound to around 5% in 2023 as wage gains decelerate with loosening labor markets, and reach 5.6% in 2024.

Growth in Tucson retail sales is expected to rebound slower. After dropping from just over 19% in 2021 to 9.3 in 2022, Hammond predicts just a 1.7% growth in 2023 as negative real income growth, declining stock and real estate values and reduced consumer confidence take their toll on consumers. Still, Tucson econo-

mists remain hopeful.

“Pima County Economic Development recently announcing the attraction of American Battery Factory to its Aerospace Research Campus, which has an estimated $1.2 billion capital investment, brings with it 1,000 jobs and has a projected $3 billion economic impact over 10 years,” said the agency’s director, Heath Vescovi-Chiordi.

“And the city of Tucson Economic Initiatives announced an expansion of Sion Power, which is anticipated to create 150 new jobs by 2026 and an economic impact of over $300 million. There certainly is plenty to be optimistic about.”

Despite somewhat hushed talks of a recession, Vescovi-Chiordi feels Arizona is poised to weather the storm well.

“As we enter 2023, expect Southern Arizona to continue to embrace regional partnerships to facilitate technology-related industry development,” he said, “including battery and semiconductor manufacturing, aerospace and defense, optics and photonics, energy R&D and production, and renewed focus on business retention throughout the region.”

To that list, Hammond also adds the government sector — traditionally less sensitive to interest rates and other drivers of the national business

cycle — which he predicts will help fuel the winds needed to lift the Tucson economy.

“Tucson would likely outperform the national economy even in a U.S. recession, due to the relatively large share of jobs and economic activity accounted for by federal, state and local government activity in the metro area.”

“On the heels of several announcements in Southern Arizona, local and regional economic developers have renewed optimism as we enter the new year,” Vescovi-Chiordi added. ITB

News and features for Tucson and Southern Arizona’s business and legal communities

CONTINUED FROM PAGE 2

(Submitted)

Carrie Kelly is executive director of the Arizona Association for Economic Development.

(Submitted)

George Hammond is director of the University of Arizona’s Economic and Business Research Center.

(Submitted)

Heath Vescovi-Chiordi is the Pima County Economic Development Department’s director.

Flair Airlines lands at Tucson International Airport

By Inside Tucson Business Staff

The Canadian low-fare carrier Flair Airlines kicked off its inaugural flights from Edmonton and Fort McMurray, Alberta, Canada, at the end of November, with the start of service to Tucson.

Flair launched five inaugural routes across Canada, departing from Edmonton (YEG); Fort McMurray (YMM); Prince George (YXS); London, Ontario (YXU); and Windsor, Ontario (YQG), marking the first direct flights from Canada to Tucson, arriving at Tucson International Airport (TUS).

“Expanding service for more Canadian cities to fly to Tucson is a critical part of our overarching mission to make travel more accessible to Canadians,” said Stephen Jones, Flair Airlines CEO.

“We believe Canadians deserve more affordable and competitive airfare to stay connected with the people and places they love. We are delighted to launch our inaugural flights and connect Canadians and Americans with Canada’s first direct route to Tucson.”

Myron Keehn is the vice president of air service, business development, ESG and stakeholder relations with Edmonton International Airport.

“As Flair Airlines’ hub and home base, we’ve seen their growth and success first-hand in the industry, and we’re excited to host Canada’s first nonstop flight to Tucson,” Keehn said.

“Flair’s desire to serve new markets provides critical access for business and tourism and showcases Edmonton and our region as a great place to be. We are glad to see Flair offering more flights to more places and continuing to connect our region with the endless places there are to explore.”

Denean Robinson — chief financial officer and interim president and chief executive officer of the Fort McMurray Airport Authority — is just as excited.

“We’re thrilled to welcome back Flair Airlines to YMM, with nonstop flights to Tucson, Arizona,” Robinson said.

“This new air service affords residents a quick, inexpensive sun destination and gives Tucsonans the opportunity to explore the

many unique experiences Fort McMurray Wood Buffalo has to offer.”

Windsor Mayor and YQG board Chair Drew Dilkens is pleased to add this route.

“A direct flight to a new destination not previously served from Windsor, this is what Windsor and Essex County residents have wanted — more choice and more value to exciting places,” Dilkens said.

“Flair has been a fantastic partner for YQG and the Windsor-Essex region, and we celebrate the Windsor to Tucson inaugural flight,” added Mark Galvin, Windsor Airport chief executive officer.

Gordon Duke, chief executive officer of the Prince George Airport Authority, said the addition is an “exciting opportunity to offer a nonstop sunspot destination to Prince George and the surrounding communities.”

“We are looking forward to a successful operation this winter and for many winters to come,” Duke said.

London International Airport President and Chief Executive Officer Scott McFadzean said the region has been “eagerly awaiting more airline service and are excited about the new low-cost flight options that Flair is bringing to London.”

One-way fares, including taxes and fees, begin at $54. There are limited seats and availability for the fares. All routes are available for booking at flyflair.com.

Not a bank account.

Stop letting banking just happen to you. Become a Member-Owner of a local credit union to keep more dollars in our community.

REAL ESTATE & CONSTRUCTION

Real estate transactions

Share information with Inside Tucson Business’ land transactions column. Send items to christina@tucsonlocalmedia.com.

By Christina Fuoco-Karasinski Inside Tucson Business Staff

SRS Real Estate Partners completed the $22 million sale of Silverbell Plaza, a 97,540-square-foot retail center located at 24802500 N. Silverbell Road and 2106-2180 W. Grant Road in Tucson.

John Redfield, a senior vice president with SRS’ Investment Properties Group in Newport Beach, California, and SRS Senior Vice President Alan Houston in Phoenix represented the seller, a private investor from Arizona. The buyer, a Washington-based private investor who was in a 1031 exchange, was represented by Gary Gallelli Jr. and Adam Rainey of Gallelli Real Estate.

Situated on 8.45 acres, the property was 97% occupied at the close of escrow and anchored by Walgreens and Safeway. Additional tenants include Anytime Fitness; Leslie’s Poolmart; PNC Bank; Wingstop; H&R Block; and 14 other local, regional and national businesses.

“Silverbell Plaza is a high-quality, grocery-anchored center, and the seller has had a true pride of ownership for more than 20 years,” Houston said.

“Our SRS team worked with our client to thor-

oughly understand the asset’s history, stability and positioning in the market and proactively marketed Silverbell Plaza to our extensive national investor database.”

Redfield added, “This was a prime example of a buyer and seller working together through escrow during an uncertain time in the market. Both parties kept their long-term goals in focus to help complete this transaction. This was a true team effort all around, and a good showcase of SRS leveraging its investment sales and leasing experts, and working together to create a winning situation for both sides.”

Silverbell Plaza has more than 205,000 residents and 135,000 employees within a 5-mile radius, and new residential developments are in various stages of construction nearby. The center is also 2 miles from Pima Community College and 4 miles from Downtown Tucson and the UA.

Sales Institutional Property Advisors, a division of Marcus & Millichap, announced the sale of Elevate, a 144-unit apartment property in Tucson. The asset traded for $21.8 million, or $151,389 per unit.

“Previous ownership enhanced all the common area amenities and implemented a two-tiered interior renovation program,” said Clint Wadlund, IPA senior director.

“A multifamily asset like Elevate will continue to attract prospective residents with its attractive amenities and convenient location in East Tucson,” added Hamid Panahi, IPA senior vice president. Wadlund, Panahi, Steve Gebing, Cliff David and Lane Schwartz of Marcus & Millichap represented the seller, Sheiner Group/ Living Well Homes, and procured the buyer.

The property is close to Tucson’s historic Old Spanish Trail, which gives residents easy access to the Broadway Boulevard corridor and Tucson’s Eastside. Notable nearby employers include Afni, the Davis-Monthan Air Force Base, Agero, Alorica, and the University of Arizona Tech Park at Rita Road. There are approximately 44,400 jobs within a 5-mile radius.

Constructed in 1985 on 4 acres, Elevate is a three-story, six-building property with a business center, swimming pool and fitness center. Apartments have private balconies or patios, oversized/walk-in closets and all-electric kitchens. The

average unit size is 817 square feet.

Vine Tucson LLC purchased Vine Apartments, a 6,722-square-foot investment property at 315-317 N. Vine Avenue, Tucson. The eight-unit apartment property was purchased from BRAD Land Investors LLC/The Martin and Stacey Cohan Revocable Trust for $1,425,000. Allan Mendelsberg, principal and Joey Martinez, multifamily specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction.

Lease Livestream Shopping Inc. leased 8,000 square feet of industrial space at 2055 E. 17th Street, Tucson, from R2 Ewaste LLC. Paul Hooker, SIOR, principal, industrial specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Joseph Castillo with Volk Company represented the tenant.

Kealii Molina and Simon Frohnsdorff, dba Hawaii All-Stars Arizona, leased 5,587 square feet of industrial space at Palo Verde Business Center, 3820 S. Palo Verde Road, Suite 108, Tucson, from Pegasus Tucson Owner LLC. Industrial specialists with Cushman & Wakefield

Silverbell Plaza sits on 8.45 acres and was 97% occupied at the close of escrow and anchored by Walgreens and Safeway.

| PICOR handled this transaction. Paul Hooker, SIOR, principal, and Andrew Keim represented the landlord. Alex Demeroutis and Jesse Blum represented the tenant.

Securitas Security Services USA Inc. leased a 3,351-square-foot office at 5151 E. Broadway Boulevard, Suite 410, Tucson.

Thomas J. Nieman and Richard M. Kleiner, MBA, principals and office specialists with Cushman & Wakefield | PICOR, represented the landlord, Tucson 5151 Investments LLC. Bruce Suppes with CBRE, Tucson, represented the tenant.

Proper Villains expanded its lease for an additional 1,577 square feet of office space at Williams Centre, 310 S. Williams Boulevard, Suite 310, Tucson, from DHS Property Investments Ltd. Partnership. Ryan McGregor and Thomas J. Nieman, principal, office specialists with Cushman & Wakefield

| PICOR, represented the landlord in this transaction.

Vacasa Arizona LLC leased 1,100 square feet of industrial space, at Ruthrauff Commerce Center, 2450 W. Ruthrauff Road, Suite 198, Tucson, from Pegasus Tucson Owner LLC. Paul Hooker, SIOR, principal, and Andrew Keim, industrial specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Bruce Suppes and Diane Carlson with CBRE, Tucson, represented the tenant.

American Print Company LLC leased 920 square feet of industrial space at Exchange Place Business Center, 1870 W. Prince Road, Suite E-49, Tucson, from Pegasus Tucson Owner LLC. Paul Hooker, SIOR, principal, and Andrew Keim, industrial specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. ITB

(SRS Real Estate Partners/Submitted)

Now, it’s easier than ever with Arizona Business One Stop: a new, digital portal that guides Arizona residents through every phase of owning a business. Leverage personalized tools to plan, start, run, and even sell your business. It’s all available in one online location. It’s powerful and secure. And it’s available now at businessonestop.az.gov.

Mountain Mike’s Pizza moves into Tucson

By Inside Tucson Business Staff

Mountain Mike’s Pizza recently opened its third Arizona location at 4362 N. Oracle Road, Suite 112.

Known for its crispy, curled pepperonis, Mountain Mike’s is owned and operated by Pelican Food Concepts LLC, which has exclusive rights to Tucson, Mesa, and parts of Phoenix as part of a multiunit development deal with the fast-growing pizza chain.

“When we first connected with the Mountain Mike’s team to bring the brand to Arizona, we knew we wanted to target Tucson as a location for many reasons — one being that we have an office in the area and wanted easy access

to the best pepperoni pizza in America,” said Donte’ Andry of Pelican Food Concepts.

“We are confident that Mountain Mike’s will thrive in Tucson and become a neighborhood staple for youth teams, sports fans and pizza lovers alike. We know firsthand just how irresistible those legendary crispy, curly pepperonis and Mountain-sized pizzas are.”

Mountain Mike’s Pizza’s Tucson location is 2,600 square feet with seven bigscreen televisions; a spacious patio, which can accommodate up to 20 guests; an eight-seat bar with 12 beers on draft and a large wine selection; and a game area featuring four classic arcade games.

The new location also includes a weekday all-youcan-eat pizza lunch buffet from 11 a.m. to 2 p.m.; a dinner buffet from 4 to 7 p.m. Tuesdays; daily happy hour specials from 4 to 7 p.m., and complimentary Wi-Fi.

Orders may be placed online, through the Mountain Mike’s Pizza app, or through any of the brand’s third-party delivery partners.

The new Tucson Mountain Mike’s Pizza can be reached by telephone at 520-524-1700. The restaurant is open 11 a.m. to 9 p.m. Sunday to Thursday and 11 a.m. to 10 p.m. Friday and Saturday.

Info: mountainmikespizza. com (no hyphen) ITB

(Mountain Mike’s Pizza/Submitted)

Mountain Mike’s Pizza is known for its crispy, curled pepperonis.

Chef Brian’s Comfort Kitchen is golden at

By Veronica Kuffel Inside Tucson Business Contributor

“Top Chef” contestant

Brian Hill traveled from Florida to open a new restaurant in Tucson. While it’s a delicious addition to the vibrant Fourth Avenue food scene, Chef Brian’s Comfort Kitchen is also a chance at redemption for the restaurant’s namesake. A block away from fellow “Top Chef” alum

Maria Mazon and her restaurant, Boca, Hill’s restaurant will offer artisan takes on classic comfort foods.

The fried chicken, seafood and even vegan dishes were all hand-picked from his experience in the industry. All of it is made to order with a mission for fresh and local; chicken is hand-cut and never frozen, while sides like collards are ordered from

community growers.

But to get that “maximum flavor” of his meals, people must not look just to the food but to the story. Hill grew up in the poor neighborhoods in Washington, D.C. He fell in love with cooking shows on PBS and making meals for his family on welfare checks.

“I knew I had to continue because it was just too juicy for me every day,”

Hill recalled. “That was the instant attraction. It made me smile. It made me happy.”

It was during this time he decided to make food his career, working his way from Domino’s Pizza to private chef for Mary J. Blige and other celebrities.

Hill made his TV debut on the first season of “Top Chef” and branched out to other shows like “Bar

er, and I knew he was my brother from the day I met him,” Westover said.

They reconnected a decade later and opened a restaurant. This would be the third attempt in solidifying Chef Brian’s Comfort Kitchen. Not for lack of trying, but for lack of community support and even respect.

Hill started his first restaurant in Washington, D.C., but racism

degrees

passionate eyes dimmed. “That literally destroyed everything,” Hill said. “Racism has destroyed me, but I’m still Chef Brian.”

Now with Westover by his side, he’s back and ready to grace the community with his gingerly crafted cuisine.

With the Hot Girl Summer, Miami Nice and Fried Potato croquette ($12), his mission was to make the entree entirely

(Noelle Haro-Gomez/Contributor)

Chef Brian’s Comfort Food was founded by Brian Hill, left, and Don Westover.

gan dishes.

He claims the secret to the creamy texture is the ingredients and cooking process. What’s more, Hill affirms the golden crisp comes at the golden number — 350 degrees.

“You have to have the right filling, and you have to have the right temperature; 350 is your friend,” Hill said. “I’m serious.”

The entree comes with oven-roasted tomato, basil and mushroom sauce. Creamed with coconut milk, it’s the icing on the cake — or sauce on the croquettes — that affirms it is 100% percent animal free and ready to eat.

The chicken sliders with original paprika and herb sauce ($9) were created when he was Blige’s chef. In 2005, he made these small and mighty sandwiches for her kids, cooking the chicken in his delicate, artful process.

He proclaims again, everything that makes the entrée work is that mix between ingredients and cooking.

The sliders have two hand-cut, never-frozen pieces of fried chicken stacked with a toothpick skewered through the bun. The browned bread is then lathered with Hill’s mayo. Lastly, he forgoes the cliché pickles in favor of a little spice, laying one

to three banana peppers into each slider.

“It’s for a pop, because we’re a pop-and-pop place,” Hill nodded to Westover. “No mom and pop, we’re a pop and pop.”

Hill’s world-famous golden fried chicken and

waffles ($16) feature lightly fried chicken stacked on a warm cinnamon waffle. The entrée is served with paprika and herb mayo and thick maple syrup.

With Hill, the dish is an art form. The chicken is savory, the mayo is salty and creamy, and the syrup

is sweet. All is snuggled into a warm waffle bed, flavored with cinnamon for another “pop.”

Guests are invited to wash it down with the Low and Slow homestyle brewed sweet tea ($6.25). Hill drips the “suga with an a” in as the black tea

slow-brews on the stove. While finding the right sweetness, he worked to find an “in between” to the overall community and his own roots. Served in a 16-ounce Mason jar, customers can enjoy their tea slow or on the go.

For Hill, it’s a pleasure to bring his food to Tucson. Westover affectionately calls him the “introductory factory,” watching him wave to everyone who passes, sharing his vibrant persona with whomever he meets.

“This place is so warm, and I’m not referring to the weather,” Hill said about Tucson. “If you just look at what people are giving you, you give it back.”

It’s a long time coming for Hill to share his warmth and feel it return to him. After so many losses and sacrifices, he is determined to live out his passion in the words he says and the food he creates.

Chef Brian’s Comfort Kitchen strives to provide more than comfort in its food. Hill and Westover’s mission is to ensure everyone feels welcomed and appreciated.

“We are always going to represent the disenfranchised and underprivileged and bring race into the conversation,” Westover said. “It’s not over. We’re going to keep talking about it.” ITB

Brian’s Comfort Kitchen

611 N. Fourth Avenue, Tucson; 520-999-0001 takeout, delivery and catering; chefbrianat350degrees.com (no hyphen)

(Veronica Kuffel/Contributor)

Chef Brian Hill’s world-famous chicken and waffles, served with paprika and herb mayo and maple syrup ($16). Also pictured is low and slow homestyle brewed sweet iced tea served in a 16-ounce Mason jar ($6.25).

(Veronica Kuffel/Contributor)

A serving of chicken sliders ($9) with two 16-ounce Mason jars of low and slow homestyle brewed sweet iced tea ($6.25).

(Veronica Kuffel/Contributor)

A smaller serving of Hot Girl Summer, Miami Nice, Shallow fried potato croquettes ($12), usually with five croquettes in the entrée.

Chef

Cannabis sales soar, but don’t threaten Arizona’s 5 Cs yet

By HOPE PETERS Inside Tucson Business Staff

Sales of marijuana in Arizona soared to $1.6 billion in 2021, just one year after recreational pot was legalized in the state, making Arizona second only to California for retail sales that year, according to an industry research group.

But while retail sales of cannabis are strong, the crop is far from being added to the traditional “5 Cs” of Arizona’s economy, experts say, as production still trails far behind other states.

They say cannabis could become a strong part of the state’s economy in the next few years, but the industry will first have to overcome barriers to growth nationwide that include limited trade and restrictions on financing for a crop that is still illegal on the federal level.

“We don’t see SWAT teams busting in the doors of dispensaries,” said Aaron Smith, CEO of the National Cannabis Industry Association.

“But we do have problems with not being able to take tax deductions like a normal industry, or being able to have interstate commerce, which really creates a barrier to entry for a lot of folks.”

But for now, at least, the industry appears to be growing in Arizona.

Marijuana sales brought in $221.3 million in taxes in 2021, according to the Arizona Department of Revenue, and sales in 2022 were on pace to eclipse that number, with $196.4 million in taxes in the first nine months of the year. That’s an average of just under $22 million in excise taxes a month for 2022.

Cultivation and production of cannabis as a crop, however, are not about to rival the 5 Cs: cattle, cotton, copper, citrus and climate.

Alexis Villacis Aveiga, an assistant professor at the Morrison School of Agribusiness at Arizona State University, said that in order for cannabis to rival the rest of the 5 Cs, the state would need to see a much larger

expansion of agricultural production.

But Arizona’s climate makes it difficult to grow cannabis, he said, and while greenhouses can help address that issue, Arizona has a lot of catching up to do with other states.

“For example, we have 35,000 square feet of indoors cannabis and hemp,” Aveiga said. “In California there are over 4 million square feet, Colorado has over 2 million and Kentucky has around 200,000.

“So Arizona is pretty small compared to other states,” he said.

Dave DeWalt, the Arizona statistician for the U.S. Department of Agriculture, said in an email that the state had about 129,000 acres of cotton in production in 2021, worth about $156 million, and that cattle brought in $754 million that year. There were 10,031 acres of citrus in the state in 2017, the most recent year for which USDA has data available.

Acreage for cannabis production was not readily

available, but the Arizona Department of Agriculture measures the production of hemp — a type of cannabis plant that contains 0.3% or less of tetrahydrocannabinol, or THC, the psychoactive component of the plant that gives users a high. Hemp cannot be used to get high but can be used to create things like rope, paper, paint, beer, medicine and more.

The department said Arizona had 155. 5 acres of industrial hemp growing in fields at the end of 2021 and 11,558 square feet planted indoors.

Aveiga said current state regulations make hemp less attractive as a crop, since farmers can only sell their harvest if it is below the 0.3% limit for THC. Otherwise, it counts as marijuana, which requires a separate license to grow and sell.

Smith, of the NCIA, said it’s not just farmers: Businesses trying to sell medical and recreational marijuana face legal hurdles that other businesses don’t.

A vendor makes change for cannabis sale at a Los Angeles marketplace in this photo from 2020, when Arizona voters legalized recreational use of marijuana. Since then, cannabis sales in Arizona have surged to an estimated $1.6 billion, second only to California, but production in the state still lags.

He said regulations for cannabis make it difficult for small businesses to deduct expenses and find banks to work with. That means some operators cannot take credit cards for purchases and in some cases cannot place cash in checking accounts.

“It just serves nobody’s interest to have the industry operate in cash or you do not have access to these services,” Smith said.

Despite all the current hurdles, Smith said Arizona

has been a pioneering purple state in terms of cannabis regulation and has shown just how popular legalization can be.

“Cannabis is used across demographics — boomers and millennials and Gen Z. People over 21 are using responsibly, and we’re glad to see that,” Smith said. “Arizona law is by and large working well.”

For more stories om Cronkite News, visit cronkitenews.azpbs.org. ITB

(Richard Vogel/AP/Shutterstock)

Peter Piper Express gives back to children’s hospital

By Inside Tucson Business Staff

Peter Piper Pizza recently celebrated the opening of its first to-go-only concept in Tucson by donating 50% of its grand opening sales to Tucson Medical Center for Children.

The facility is Southern

Arizona’s only Children’s Miracle Network hospital. It offers child life and pediatric therapy programs.

“We’re incredibly grateful for Peter Piper Pizza’s generous support of the pediatric programs at Tucson Medical Center Foundation. Through their generosity, we’ll be able

to support two integral programs and purchase much-needed equipment,” said Bruce Ayers, program director at Children’s Miracle Network.

The grand opening event kicked off with a ribbon-cutting ceremony featuring South Tucson Mayor Akanni Oyegbola,

in addition to the mascot and cheerleaders from Alta Vista High School in celebration of the 20 students hired at the new restaurant.

“Based on the strong performance and positive customer feedback we’ve received since opening our first two locations in Phoenix, we couldn’t

close out the year without bringing our to-go-only concept to Tucson,” said Genaro Perez, vice president of marketing for Peter Piper Pizza. “There’s so much love for Peter Piper in Tucson, and now locals will have an easy option to pick up their favorite pizza and enjoy it in the comfort

of their homes.”

The new to-go-only restaurant, located at 1770 E. Irvington Road, Suite 100, debuted in March. Express locations feature Peter Piper Pizza’s full menu, including pizzas crafted from dough made fresh daily, salads, appetizers, desserts and bottled beverages. ITB

(Peter Piper Express/Submitted)

Peter Piper Express in Tucson celebrates its ribbon cutting with a donation of 50% of its grand opening sales to Tucson Medical Center for Children.

(Peter Piper Express/Submitted)

Tucson’s sole to-go-only Peter Piper Pizza is located at 1770 E. Irvington Road, Suite 100, Tucson.

(Peter Piper Express/Submitted)

Express locations carry Peter Piper’s full menu, include fresh pizzas.

(Peter Piper Express/Submitted)

Pizzas crafted from dough are made fresh daily.

(Peter Piper Express/Submitted)

The first two locations opened in Phoenix before expanding to Tucson.

Employment Agencies

1 Express Employment Professionals

3 The Temp Connection 4526 E. Camp Lowell Drive Tucson, AZ 85712

(520) 807-4800 wendy.pendleton@expresspros.com www.expresspros.com/TucsonSouthAZ

(520) 323-3100 cindy@thetempconnection.com www.thetempconnection.com

420 Direct hire, temp-to-hire, temporary, and payroll services Administrative, accounting, professional, customer service Samantha

Rank 2022 2021 Business Address Phone Company Email Website Annual Budget for 2021 No. of F-T Local Employees Community Served Membership Organization? Purpose Top Local Executives Year Establ. Locally

$2,850,000 4 Pima County N Economic Development and Business Support Jan K. Lesher 1864

2

Sun Corridor Inc. 1985 East River Road, Suite 101 Tucson, AZ 85718

3

Downtown Tucson Partnership 100 N Stone Ave, Ste. 101 Tucson, AZ 85701

(520) 382-1900 N/A maranaaz.gov

(520) 792-1212 info@tucsonchamber.org TucsonChamber.org

Downtown Tucson Business Improvement District

for Downtown Revitalization

economic prosperity and a superior quality of life

through the

recruitment, retention & expansion, and creation of diverse and balanced business & Tourism industries.

$425,000 4 Marana and Tucson N/A The Marana Chamber of Commerce is the voice of business that works to build economic growth and quality of life in our community.

$180,000 10 Southern Arizona Y To advocate for local businesses and expand our local economy resulting in business growth, ample employment and regional prosperity for all citizens.

Curtis Woody Terry Rozema 1977

1998 4 Marana Dept. of Economic Development & Tourism 11555 W. Civic Center Dr. Marana, AZ 85653

1987

Michael Guymon 1896

$3 N/A Business owners N/A We help business owners sell their business and strengthen it. We help communities retain jobs.

Tucson business owners

Annie Palacios Sarah McBroom 2022 7 Project Equity N/A N/A, CA N/A

N/A N/A https://project-equity.org/

(520) 751-1030 N/A mpaaz.org

N We

help communities expand employee ownership in their regions Annie Palacios Sarah McBroom N/A 9 Metropolitan Pima Alliance 2 E. Congress, 6th Floor Tucson, AZ 85701

$0 2 Pima County Y MPA works to create a prosperous community by promoting collaborative real estate development policies, building partnerships and finding common ground.

5 Mission Management & Trust Co. 3567 E Sunrise Drive, Suite 235 Tucson, AZ 85718 (520) 577-5559 info@missiontrust.com www.missiontrust.com $250,000,000 N/A N/A N/A LPOA's, SNT's Thomas Gryp Susan Ernsky

NTPI Steve Borden John E Jarvise 1986 8 Affinity Wealth Management 2476 E River Road Tucson, AZ 85718 (520) 795-3360 vanessa.bell@lpl.com

F. Raskob , CFP, EA, ATA, Fellow

6 Tucson Metro Chamber 212 E. Broadway Blvd. Tucson, AZ 85701

7 Project Equity N/A N/A, CA N/A

N/A N/A https://project-equity.org/

$3 N/A

9 Gordian Advisors 2200 E. River Rd.,

109 Tucson, AZ 85718