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August 2026

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INSIDE THE AUGUST 2026 ISSUE: Fire Chief Mark Gaillard Honored for Leadership p. 3

Giddy Up for Western Adventure at Blazin' M Ranch p. 13 Short-Term Rentals Face New Taxes p. 17

Cancer Support Community Celebrates Success p. 4

Historic Route 66 Motel May Help Ease Housing Shortage p. 18

Em's Hometown Bakehouse Serves Homemade Goodness p. 8

Flagstaff Startup Seeks to Help Businesses, Employees Facing the AI Skills Crisis Earthsight AI Consortium consults with businesses, trains workers, designs systems

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By Bonnie Stevens, FBN

he reported July security breach involving an unreleased OpenAI model allegedly escaping its “sandbox” testing ground and accessing tools from a competitor’s secured system is feeding human fears about just how smart, powerful

and independent artificial intelligence really is and how it fits safely into our world. Those fears and concerns are exactly why four Northern Arizona AI experts are launching Earthsight AI Consortium. The startup consults with small- to mid-sized businesses, trains employees and designs secure

AI systems to help organizations adopt artificial intelligence proficiently, safely and effectively. “Fear is the No. 1 emotion I see in class,” said Earthsight co-founder Ariel Strong, who also teaches “AI for Everyone” at Coconino Community College. “Students arrive afraid of being impacted negatively – afraid for their jobs, afraid for their businesses and overwhelmed by the new technology.” Responding to the security incident

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at AI company Hugging Face, Strong says, “The attack wasn’t malicious, the AI was just trying to do a good job.” She explains that AIs are given a goal. “This one was being tested and was trying to get the highest score it could get. But it needed some tools to do that. Hugging Face was the target because it has all sorts of tools. The AI created its own assistant to help – an autonomous AI agent – that could Continued on page 39

Turning Good Ideas into Action Downtown Matters conference highlights importance of vibrant downtowns that build strong communities

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Hunter Hebert, executive director and CEO of the Flagstaff Downtown Business Alliance, welcomes attendees to the inaugural Downtown Matters conference at the historic Orpheum Theater, where about 150 people gathered to discuss strategies for creating stronger, more vibrant downtowns. Courtesy photo

August 2026 | Issue 8 Volume 19

By Betsey Bruner, FBN

onoring its legacy as a gathering place since opening in 1911, the historic Orpheum Theater welcomed about 150 attendees from Arizona and other states to the inaugural Downtown Matters conference, July 16 and 17. Community leaders, downtown professionals, business advocates, planners and residents gathered to explore ideas, projects and partnerships designed to strengthen downtown districts and build more vibrant communities. Hosted by the Flagstaff Downtown Business Alliance (FDBA), the conference reflected the organization’s nearly 25 years of work promoting and supporting downtown Flagstaff. The FDBA represents more than 250 businesses and property owners. “Downtowns are often the heart of a community, and we believe there is tremendous value in bringing together people from different backgrounds, industries and communities to share

ideas and learn from one another,” said FDBA Executive Director and CEO Hunter Hebert. Speakers included Charles Marohn, founder of Strong Towns; Joe Minicozzi, founder of Urban3; Jon Jon Wesolowski, known as The Happy Urbanist; and Cary Tyson, executive director of Portland Downtown in Maine. Discussions focused on economic vitality, public spaces, placemaking, transportation, housing and long-term community resilience. “Our focus has been on creating a professional conference environment,” said Hebert. “We had networking opportunities and spaces for attendees to connect between sessions. We also encouraged attendees to spend time exploring downtown businesses throughout the conference. We partnered with Mountain Line, Oeno, The Annex, Freaky Foot Tours and Lowell Observatory for special event promotions.” “My hope is that two days of shared ideas, successes and honest struggles sends all of us home smarter, more energized and better equipped to Continued on page 39


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August 2026 by Flagstaff Business News - Issuu