Inside Tucson Business 1/25/2013 by Territorial Newspapers

DUFFER’S DELIGHT Kino Springs course offers golfers a change of pace PAGE 10

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JANUARY 25, 2013 • VOL. 22, NO. 34 • $1

The mission to evade detection The story of Pedro Morales, an undocumented worker, on his return to Mexico Page 4

Local craftbrewing industry takes oﬀ

Streamline, simplify, reform some more 10 proposals made to improve state’s sales tax system Page 5

Forecasting frenzy Mike Mallozzi, brewmaster at Borderland Brewing, prepares equipment for a new batch of beer.

PAGE 3

Gordon Bates photo | Illustration by Andrew Arthur

Education standards will help economic development, business leaders say By Julia Taylor Cronkite News Service Arizona’s newly adopted Common Core Standards for education will produce a workforce better versed in math and critical reasoning skills and it’s critical for educators to have the necessary training to implement the standards, say business leaders. “If you don’t have a good set of requirements, you don’t have a good system,” said Ron Carsten, former chief engineer at Raytheon Missile Systems, who spoke earlier this month to a joint session of House committees on education, higher education and commerce, encouraging the lawmakers to provide the necessary funding, adding, “You

Julia Taylor, Cronkite News Service

Real estate predictors to present prognosis Page 19

Ron Carsten

can’t just mandate it.” Cathleen Barton, southwest regional education manager for Intel Corp., said the rigorous expectations set forth in the Common Core curriculum will allow Arizona’s business community to compete on a global level. “This is about an economic development problem and an opportunity in which case education is part of the

solution, as opposed to this being an education problem that Common Core is going to solve,” Barton said. Some lawmakers said they’re concerned that if problems arise in the Common Core curriculum standards, the business community will not stand behind the plan, financially or politically. State Rep. Eric Meyer, D-Paradise Valley, said he is concerned the high student-teacher ratio brought on by staffing cuts, coupled with a decline in education funding, will make it difficult for schools to implement the Common Core Standards. “What are we going to get from the business community?” he asked. “We can’t buy computers, we can’t hire teachers, we can’t raise the technology for Wi-Fi in the classrooms, we can’t have the data systems with-

out funding.” In response, Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry, said, “We will be there as a business community to advocate on behalf of funding for the Common Core Standards.” Carsten, the former Raytheon engineer, said if the Common Core system were to come under attack, “my camp would stand up and make noise.” In an interview, Carsten said Raytheon and other Arizona companies have a strong investment in science, technology, engineering and math education, which he said extends beyond education to inspiration. “Our children have to care about it before they can go off and do it,” he said.

2 JANUARY 25, 2013

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JANUARY 25, 2013

NEWS

Success flows for Tucson brewers

Gordon Bates

787 battery issues prompt visit to Oro Valley firm

Nigel Knoy, an employee at Borderlands Brewing Co., cleans some of the company’s new brewing equipment. Borderlands has expanded its brewing capacity nearly ten-fold in its first year.

By Patrick McNamara Inside Tucson Business It came as little surprise to Myles Stone that Tucson had a largely untapped market for craft-brewed beer. But it was a surprise that demand for his fledgling Borderlands Brewing Co.’s beers would so quickly outpace supply. “There hasn’t been a day we haven’t been sold out since we opened,” Stone said. Stone, along with partners Mike Mallozzi and Blake Collins, opened their microbrewery and taproom at 119 E. Toole Ave. downtown in late 2011. Stone said they started the venture with

Phone: (520) 295-4201 Fax: (520) 295-4071 3280 E. Hemisphere Loop, #180 Tucson, AZ 85706-5027 insidetucsonbusiness.com

just $2,000 in cash. Since then, the popularity of Borderlands has grown exponentially, playing host to numerous food truck events, parties, art exhibits and even a wedding. All while supplying keg beer to several downtown and regional bars and restaurants. Today (Jan. 25), the Borderlands crew plans a grand reopening event to celebrate the completion of their expanded brewing facility, which would increase their capacity by more than 10 times. The growing success of Borderlands, which has coincided with downtown’s renaissance, exemplifies a trend in the state’s craft brewing industry. A 2012 Northern Arizona University

study of the state’s craft brewing industry showed that the once novelty brew pub and microbrewery sector has begun to transcend cult status to become a real force. The study, conducted by NAU’s Hospitality Research and Resource Center and the Arizona Rural Policy Institute for the Arizona Craft Brewer’s Guild, found that the craft-brewed beer sector contributed a $278 million impact on Arizona’s economy in 2011. Craft brewers in Arizona produced more than 119,000 barrels in 2011, a 22 percent increase over 2010, according to the study. In units of beer measurement, CONTINUED ON PAGE 6

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Inside Tucson Business (ISSN: 1069-5184) is published weekly, 53 times a year, every Monday, for $1 per copy, $50 one year, $85 two years in Pima County; $6 per copy, $52.50 one year, $87.50 two years outside Pima County, by Territorial Newspapers, located at 3280 E. Hemisphere Loop, Suite 180, Tucson, Arizona 85706-5027. (Mailing address: P.O. Box 27087, Tucson, Arizona 85726-7087, telephone: (520) 294-1200.) ©2009 Territorial Newspapers Reproduction or use, without written permission of publisher or editor, for editorial or graphic content prohibited. POSTMASTER: Send address changes to: Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087.

An Oro Valley-based maker of chargers for batteries used on the Boeing 787 Deamliner received a visit this week from investigators of the National Transportation Safety Board trying to determine what is causing the battery issues that prompted the U.S. Federal Aviation Administration (FAA) to order the airliners grounded. On Tuesday (Jan. 22) authorities visited Securaplane Technologies Inc., 10900 N. Stallard Place, to test and examine the charger and download memory from the controller for the auxiliary power unit. Fiona Greig, a spokeswoman for Securaplane, told Reuters the company had been invited to “contribute to the investigation process” and planned to fully support it. “In line with the NTSB’s practices, however, it would not be helpful to that investigation to comment further,” she said in a statement provided to the news service. A Jan. 7 fire aboard an empty Japan Airlines 787 at Boston Logan International Airport took firefighters 40 minutes to extinguish. Investigators, who had initially thought the fire was caused by overcharged batteries, later ruled that out. There was no immediate comment from the NTSB after the visit to Securaplane. The investigators moved on to Pratt & Whitney Engine Services in Phoenix, which manufactures the auxiliary power unit (APU) used in the 787. Securaplane’s charger is a component in the APU. Securaplane is a subsidiary of Meggitt Plc, Great Britain. The company began working on the charger in 2004. In 2006, a lithium-ion battery used in testing exploded and sparked a fire that burned an administrative building to the ground and caused millions of dollars in damages. An investigation into that fire determined the cause was the setup of the test, not the design of the battery or the charger. Earlier this month, Securaplane announced it is planning to move from its current location to a new 55,000 square-foot office and manufacturing facility in Oro Vallley’s Innovation Park, which is also home to Roche Group’s Ventana Medical Systems and Sanofi. The move is being planned for late in the year. On Jan. 16 the FAA ordered that airlines stop flying the 787 while it investigates the risk of battery fires aboard the technologically-advanced airline after three reported incidents. So far, 50 of the 787 Dreamliners have been delivered to airlines. Almost half are being operated by two Japanese airlines, Japan Airlines and All Nippon Airways. United is the only U.S. airline operating the 787. It has six of them.

EDITION INDEX Public Notices Profile On the Menu Arts and Culture Briefs Inside Media Calendar

6 10 12 12 13 14 17

Finance Real Estate & Construction Biz Buzz Editorial Classifieds

18 19 20 20 23

4 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

NEWS Tucson’s unemployment rate jumped up in December — one of four months in 2012 that was up — offsetting a higher than normal increase in new jobs created in November, according to the Arizona Office of Employment and Population Statistics. Tucson’s December unemployment rate was 6.9 percent, up from 6.6 percent in November. Despite the increase in the rate, more Tucsonans were on a payroll in December than in any other month of 2012. According to state officials, 364,700 Tucsonans were employed in December, up from 362,900 in November. Over the course of the year, the monthly average number of working Tucsonans was 356,700. Tucson ended 2011 with an unemployment rate of 7.8 percent. Arizona’s statewide unemployment rate for December 2012 was 7.9 percent, up from 7.8 percent in November and 9.0 percent in December 2011. The statewide unemployment is adjusted for seasonality. The Tucson unemployment rate is not.

Tucson gas prices are inching upward Continuing a trend that started at the beginning of the month, Tucson gas prices continued to inch upward this week to an average of $2.95 per gallon for regular, according to AAA Arizona’s weekly survey. The price is up about 3 cents per gallon over the last week and up about 6 cents per gallon since the end of December. AAA reports that price changes are different in different parts of the country. While Arizona prices have increased slightly, the usually high prices in California have fallen.

Pima County calls off plans for bond election Plans for Pima County to seek voter approval this fall for what’s been billed as investment in the region’s economic recovery will be postponed until November 2014 at the earliest. Pima County Administrator Chuck Huckelberry told the Bond Advisory Committee on Jan. 18 that the tepid economic recovery combined with a seeming reticence of voter support last election makes a 2013 election impractical. In October Huckelberry issued a Economic Development Action Plan calling for $197 million in improvements, including $90 million for roads, $37 million for tourism facilities, $30 million in economic development infrastructure improvements, $30 million specifically for the area south of Tucson International Airport, in part to provide a buffer surrounding Raytheon Missile Systems plant, and $10 million for the University of Arizona Science and Technology Park.

Helping an undocumented man evade detection — so he could return to Mexico By Keith Rosenblum Inside Tucson Business NOGALES — The mission is to help a Mexican friend, an undocumented worker from Oaxaca, leave Arizona. We are walking south on Morley Avenue, just 15 feet from Mexico. It is is the end of a 20year stay for Pedro Morales, 43, and there is a special irony in the task at hand. If we pique the interest of officers from the Border Patrol, U.S. Customs & Border Protection or the Santa Cruz County Sheriff ’s office, they can ask Morales for identification and proof of his legal presence in the United States. When Morales cannot present proof that he is legally in the U.S., he will be arrested and sent to federal incarceration facilities at Eloy. When an undocumented worker is held there, it’s often months before he’s released. Morales’ goal? Get back to Mexico and put the United States behind him. Those 15 feet might as well be 15 miles. Months of conversations have gone into today’s movements. This is, in many ways, a sad denouement for a man who came to the United States with a wife and six-year-old, all undocumented, in 1993. At that time anything would have been better than the future offered Morales in his home town, the village of Loma Linda. Morales had high hopes for his wife, Maria Luisa, and their son. By many metrics their stay in the U.S. was successful. Morales was a talented and energetic landscaper. He was lawabiding, even while having broken the law to come to the U.S. He chose to work on his own instead of borrowing a Social Security number or working with false documents. He bought his own electric pruning shears, leaf blower and other tools, and developed a circle of customers. He prepared promotional materials, business cards and knocked on doors. Morales had faithfully gone to a Western Union office in Tucson and sent giros (money orders) to aging and ailing parents. Siblings, nieces and nephews could buy new clothes and study because of his largesse. But the role of being a provider-from-afar had come at considerable personal cost. Diabetes, then a drinking problem, then marital problems had riddled the stay. At one point, Morales found himself living in his pickup truck. The ride from Tucson to Nogales was upbeat but tense. Two other friends, Carlos and Ramio, and I are optimistic Morales will make it back into Mexico, but what if he doesn’t? What if they ask him for identification? What if we were to be

Keith Rosenblum

Tucson unemployment rate ticks up to 6.9%

Due to the nature of the story, the only person we’re going to identify by name is Pedro Morales. Otherwise, we’ll just describe the other two men as his friends who helped him get across.

pulled over on our way to Nogales? None of us is an expert on SB 1070, Arizona’s law on undocumented people being in the state. None of us is familiar with the intricacies of federal law. Are we breaking a law at one level or another? Those 15 feet again. Mexico is within sight, smell and earshot. If Morales had the ability, he could simply run for the border. But he is frail. And a border that was once almost free of vigilance for those headed south is now often a sea of law enforcement uniforms. Vehicles headed to Mexico are stopped at border crossings as a host of federal and local officers look for weapons, ammunition, undeclared cash and — remarkably — undocumented Mexicans. If a federal agent

cannot stop a car for his own motives, he can ask a colleague from the Nogales Police Department to stop it for something as basic as a repair. There were times during Christmas break in December it would take up to 30 minutes to leave the U.S. We have worried for weeks what would happen if there was vigilance at the crossing. An officer is free to ask for identification for any reason; there need not be the legal benchmarks of “probable cause” or “reasonable suspicion” or anything else. We have chosen the Morley Avenue pedestrian gate instead of the more popular Dennis DeConcini Port of Entry, a block away, because the pedestrian-only crossing is the way most locals from Nogales, CONTINUED ON PAGE 6

InsideTucsonBusiness.com

JANUARY 25, 2013

NEWS

Business, cities closer to accord on retail tax reform process By Patrick McNamara Inside Tucson Business Most retailers know it but most of their customers probably don’t: There is no sales tax in Arizona. Instead, the state has what it calls a transaction privilege tax. It’s a tax levied on the seller of goods based on the gross proceeds derived as income from sales. A traditional sales tax is something the purchaser pays on goods or services. It’s a distinction without a difference, perhaps, since the consumer ultimately pays the tax either way. In any event, Arizona’s tax on sales causes enough logistical and accounting issues that reform is a significant talking point in the current session of the Legislature, though no bills had been introduced as of mid-week this week. The Arizona Tax Research Association is pushing reforms to simplify what president Kevin J. McCarthy calls “the most administratively complex sales tax system in the country.” Under the current system, the Arizona Department of Revenue collects taxes for the state, its 15 counties and 73 municipalities. There are 18 cities that collect their own taxes and perform their own audits, including Tucson. Last year Gov. Jan Brewer organized a task force to work on simplification. In December it issued 10 reform proposals. The reforms cover various issues about

taxation, but in terms of retail taxes, the task force recommended implementing standardized administration for the transaction privilege tax, standardized definitions, the creation of an online portal for payments and elimination of many of the nearly 100 deductions and exemptions. “We’re looking for the Legislature to study these recommendations,” McCarthy said. He compared the process merchants are currently required to navigate to paying property taxes. Except that when owners pay their property taxes the check goes to one entity, usually a county treasurer, who then remits the money to all the taxing authorities such as a municipality, county, school district and any other special districts. But in the case of transaction privilege tax, a business must remit tax payments to several governments and track numerous deductions. As a major step toward simplification, McCarthy said his group would like the state to implement the proposal for a one-stop online portal for paying the transaction privilege tax. “When you look around the country, everybody else thinks that’s OK,” he said. But in the past, advocates for reform and groups such as the League of Arizona Cities and Towns, which represents municipalities, were unable to reach a resolution. In particular, cities and towns have had concerns that previous reform efforts really

amounted to tax breaks by another name, resulting in their jurisdictions receiving less revenue. This year, however, the two sides appear to have more common ground. “We need to look at the glass as being half full,” said Ken Strobeck, president of the League of Arizona Cities and Towns. On the proposal for a portal, Strobeck said his group would favor the online portal as a way to simplify the payment process. “What that does is make use of technology,” he said. “If there’s a way to do things simpler, we’re all for it.” He also said the league would favor a reduction in the number deductions and exemptions allowed. Overall, Strobeck said his organization would support seven of the 10 task force recommendations as currently written. The three proposals the league doesn’t support would require: the state to administer transaction privilege sales tax for all municipalities, the Department of Revenue to conduct all audits of the tax, and elimination of the tax on construction sales in favor of a tax at the point-ofsale for construction materials.

Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

FC Tucson, Pima County announce plans for new soccer stadium Inside Tucson Business A new 2,000-seat soccer stadium will be built at the Kino Sports Complex, on the north side of Ajo Way across the street from the main baseball stadium currently being used by the Tucson Padres. “The whole purpose of this is to get much more multi-sport use out of the facility,” said Chuck Huckelberry, Pima County administrator. The announcement of the new stadium was announced jointly Wednesday (Jan. 23) by FC Tucson and Pima County. Huckelberry said the new fields and stadium, along with the 11,000-seat main stadium at Kino, will continue to host Major

League Soccer Spring Training games, international sporting events and youth and intramural sports. FC Tucson and the county have begun to work on an agreement for the soccer organization to facilitate and organize sporting events at the redesigned complex, Huckelberry said. Pima County plans to spend $2.8 million on changes to the complex, which include remaking the practice baseball fields north of Ajo Way into five to six soccer fields. The project will be funded using a portion of a $5 million settlement it received when the Chicago White Sox broke its Spring Training agreement following the 2008 season.

Work will begin on the new stadium after Major League Soccer Spring Training Games in February. The county project is expected to finish in time for FC Tucson’s 2014 season. The Kino Sports Complex, 2500 E. Ajo Way, was built primarily to facilitate Major League Baseball Spring Training and had been used by the Arizona Diamondbacks and Chicago White Sox until both teams moved to the Phoenix area. This will probably be the final year the Triple-A Padres play at Kino. The team has been sold to an El Paso investment group and the plan is to move to a new stadium there that is due to completed by the summer of 2014.

This Week’s

Good News ‘Gridiron’ stats Construction of the new Lowell-Stevens Football Facility at the north end zone of Arizona Stadium is expected to produce a major score for the UA Wildcats. Already, it has been a major winner for the region’s economy. Between 285 and 300 construction workers are now on-site each week, a pace that will continue until March, according UA Director Athletics Greg Byrne. And 85 percent of the workers on the project are local. Plus, about 66 percent of the project’s $72.3 million costs have been contracted to Tucsonarea companies. The 184,000 square-foot facility is on schedule for completion in time for the Wildcats’ first home football game Aug. 31 against Northern Arizona University.

The Tucson

INSIDER Insights and trends on developing and ongoing Tucson regional business news.

Postal Service plans The U.S. Postal Service says it wants to run more like a business but sometimes you’ve got to wonder. Believing what Postal Service employees told Inside Tucson Business about the planned closure of the Tucson mail sorting facility next month, this publication has been working for months to switch to a direct delivery system that would assure timely deliveries of the weekly printed publication. As editor David Hatfield notes in his Biz Buzz column (page 20), the switchover was a success. But Hatfield received a call from George Kalil, president of Kalil Bottling, who says he’s involved in an effort with others, including City Councilman Richard Fimbres, to keep the mail sorting facility open. “It’s not over,” he told Hatfield, vowing a fight to the bitter end. The Postal Service didn’t make much of an effort to suggest the closure was in question so you’ve got to wonder how many other businesses may be jumping ship and this turns out to be a self-fulfilling effort.

TEP logo, ouch! Tucson Electric Power’s new logo has been ranked as the 10th worst new logo in the world by an outfit called Under Consideration, which runs a branding and logo blog called Brand New, where 83 percent ranked it as bad. The blog described the new logo as “Bland as a blackout and crappy as a swoosh.” The new logo, which TEP said, “features a sunny-colored arc suggestive of Southern Arizona’s most prominent characteristic and was designed to resemble the recently introduced logo for UNS Energy.” One blogger described the so-called “sunnycolored arc” as a “toe nail clipping.”

6 JANUARY 25, 2013

PUBLIC NOTICES Selected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIES Chapter 11 Business reorganization Yaqui Electric Co. LLC, 209 S. Huachuca Blvd., Huachuca City. Principal: John Edward Morales, managing member. Estimated assets: No more than $50,000. Estimated liabilities: No more than $50,000. Largest creditor(s): Schedule not filed. Case No. 4:13-bk-00500 filed Jan. 14. Law firm: Eric Ollason Richard Samuels and Kimberly A. Samuels, 14516 N. Quiet Rain Drive, Oro Valley. Principal: Richard Samuels and Kimberly A. Samuels, joint debtors. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Schedule not filed. Case No. 4:13-bk00558 filed Jan. 14. Law firm: Eric Slocum Sparks

FORECLOSURE NOTICES Shalimar Investment LLC 700-702 E. Fair St. 85714 Tax parcel: 120-09-306A Original Principal: $800,000.00 Beneﬁciary: Atlantic National Trust LLC, Portland, Maine Auction time and date: 11:30 a.m. April 11, 2013 Trustee: Western Regional Foreclosures LLC, 1 W. Deer Valley Road, Suite 103, Phoenix Tri Pointe Tucson LLC (14.47%), Gregory R. Fretz and Ann B. Fretz (17.86%), William C. Kao and Karen L.S. Kao (5.95%), Dana Denardi (12.97%), Paul F. Ward and Lynn C. Ward (5.95%), John C. Adams (4.46%), Patricia J. Rahn (2.26%), Rita L. Boren (7.86%), and Noel Singh and Sandhya Nath (5.36%) 6363,6365, 6367, 6369, 6373, 6375, 6377, 6411, 6445 and 6451 E. Tanque Verde Road 85715 Tax parcel: 133-16-030E and 133-16-030J Original Principal: $14,600,000.00 Beneﬁciary: CSFB 2005-C3 Tanque Verde LLC, co/o LNR Partners LLC, Miami Beach, Fla. Auction time and date: 10 a.m. April 16, 2013 Trustee: Jacob A. Maskovich, Bryan Cave LLP, 2 N. Central Ave., Suite 2200, Phoenix

LIENS Federal tax liens Western Meat Co. and Bela Herczeg, 2310 N. Country Club Road. Amount owed: $11,767.02. Sunquest Information Systems Inc., 250 S. Williams Blvd. Amount owed: $141,613.16. Royal Auto Glass & Tint LLC and Justin S. Ellis, 131 S. Camino Seco. Amount owed: $2,973.22. Maria’s Cafe and Manuel J. Canez and Joann A. Canez, 3530 S. Sixth Ave. Amount owed: $6,573.68. Saguaro Acres Assisted Living Inc., 18002 S. Placita Octubre, Green Valley. Amount owed: $33,018.15. Gateway West Realty Inc., 2151 W. Felicia Place. Amount owed: $4,532.73. Cactus Cleaning LLC and Barbara Corrao, 9075 E. Igo Place. Amount owed: $17,245.79.

Mechanics liens (Security interest liens of $1,000 or more ﬁled by those who have supplied labor or materials for property improvements.)

Sun Door & Trim Inc., 1522 W. Victory St. #5, Phoenix, against Starwood Tucson Realty LLC, c/o Starwood Hotels & Resorts Worldwide, 15147 N. Scottsdale Road #210H, Scottsdale, and Thompson Reuters Dept. 208, PO Box 4900, Scottsdale 85261. Property: 1900 E. Speedway. Amount owed: $15,226.00. Able Glass Service, 1219 Cherry Ave., Long Beach, Calif., against Interstate Brands Corporation, PO Box 419627, Kansas City, Mo., 64141. Property: 3045 N. Stone Ave. Amount owed: $1,863.98. Westar Environmental, PO Box 1749, Higley 85236 against Marana Health Center Inc., 13644 N. Sandario Road, Marana. Property: 13395 N. Marana Main St., Marana. Amount owed: $113,405.67. Liberty Metal Framing & Drywall, 2447 N. Stone Ave., against DND Neffson Co., PO Box 61795, Chicago, Ill. 60661; General Growth Properties, 110 N. Wacker Drive, Chicago; and Bank of America, 540 W. Madison St., Chicago. Property: 4500 N. Oracle Road, Suite 370. Amount owed: $128,528.00.

INSIDE TUCSON BUSINESS

UNDOCUMENTED CONTINUED FROM PAGE 4

Sonora, enter to shop. These Mexicans, usually poorer, also don’t have the vehicles or money that many using the Mariposa Port of Entry use when traveling to and from destinations farther into Arizona, such as Tucson. Who knows if our thought processes are correct? At this point, Morales is ailing and longs to be back in Mexico. His family is eager for him to return. Our mission, at least, is clear. Were we to cross at 9 a.m. or 10 a.m., it might appear odd. That would mean he was returning to Mexico only an hour or two after crossing through an entry that opened at 8 a.m. If only Pedro had the agility of a Johnny Manziel, Texas A&M’s quarterback and Heisman Trophy winner. But Morales doesn’t even have the agility of most peoples’ grandmothers. We’d have more success trying to hurl him over the 20-foot high border fence than having him dash

across. We try to look innocent, which means having shopping bags filled ostensibly with purchases from our nonexistent day trip to Nogales. It appears we have been shopping. It is 11 a.m. on a Friday. Morales and his two friends now begin what is the appearance of a routine exit from the United States. I drive, separately, across the border to meet them — hopefully. What is a layman’s take on how state and federal law view what we are doing? Under the federal Immigration and Naturalization Act, anyone who “transports, or moves or attempts to transport or move such alien within the United States by means of transportation or otherwise, in furtherance of such violation of law” is punishable with prison time. Federal law would appear to give us a “bye” in that, far from furthering an illegal stay, we were attempting to terminate one.

SB 1070 might have had us within its sights. Arizona Revised Statutes, 13-2929, mimics the federal law and makes it unlawful to “transport or move ...an alien in this state, in furtherance of the illegal presence of the alien in the United States.” More importantly, it is also unlawful to “conceal, harbor or shield ...an alien from detection in any place in this state, if the person knows or recklessly disregards the fact that the alien has come to, has entered or remains in the United States in violation of law.” These may be issues of the day for state and federal authorities; they are but abstractions to those with imperatives. The three walk toward the gate. The officers are distracted. No one pays attention to an unremarkable trio. There is not yet a device to measure accelerated heartbeats on those leaving our country. The crossing is uneventful. The trio walks into Mexico and celebrates this oddest of triumphs.

BREWERS CONTINUED FROM PAGE 3 a barrel equals 31 gallons, about double a conventional keg. The study calculated that craft beer production in the state increased more than 20 percent each year from 2009 to 2011. In an era where overall beer sales have fallen, craft beer sales continue to climb. Between 2008 and 2010, according to figures from the Brewers Association, sales of major national label brands of beer fell by more than 3 percent. The craft-beer sector has grown. Craft beer sales increased by 10 percent in 2009, by 12 percent in 2010 and by 13 percent in 2011. Brewers Association figures from last summer showed that 2012 sales of craft beer were continuing the trend, with a 14 percent increase over the previous year. Another newcomer to Tucson’s brewing market is Dragoon Brewing Co., 1859 W. Grant Road, No. 111, which opened in April 2012. Eric Greene, head of brewing for Dragoon, said the company started out with the intention of producing about 1,200 barrels per year. In less than a year, however, demand for the beer has exceeded expectations. “It took off a lot faster than we thought it would,” Greene said. So much so the company intends to expand its brewing capacity to 9,000 barrels per year, which Greene said was more than a year ahead of plans. Dragoon distributes to more than 50 restaurants and bars in Tucson and about 10 locations in the Phoenix area. A specially brewed beer the company makes for Whole Foods markets is available exclusively at the retailers seven stores currently open in the state. “The microbrewing industry has really taken off in Arizona in the last four to five years,” Greene said.

While the industry has grown in Arizona, it’s well behind other states where craft brewing has flourished. Arizona ranks 30th in terms of per capita breweries among the 50 states and District of Columbia, according to a 2011 analysis done by the Brewers Association. With 34 breweries operating in the state at the time, that was the equivalent of one for each 188,000 residents. Vermont had the most per capita, with 24 breweries or one for every 26,000 people. Oregon was second with 124 breweries or one for every 30,000 residents. California has the most breweries of any state, 268. That dearth of breweries in Arizona played into Greene’s decision to start Dragoon. After attending NAU in Flagstaff and later the American Brewers Guild training program, Greene apprenticed in Boston before returning home to Tucson. He considered opening a brewery in Colorado or the Pacific Northwest, but the large number of craft brewers already operating in those areas meant there would be more competition. “Arizona is a place that everyone realized was under-saturated and had room to grow,” Greene said. Going back to the 1990s there were just three craft brewers in the Tucson region, Gentle Ben’s near the University of Arizona Campus, Nimbus in the south side warehouse district off Palo Verde Road and Thunder Canyon Brewery in Foothills Mall. Others that have joined them recently include Barrio Brewing, a second effort by the folks behind Gentle Ben’s, which opened in 2006; Thunder Canyon opened a second location this month downtown and Ten 55 Brewing is planning a grand opening Feb. 2 in the warehouse district off

South Palo Verde Road. For his part Stone said, “Tucson has really turned the corner on brew culture.”

Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

BIZ FACTS

Tucson craft brewers: • Barrio Brewing Co. www.barriobrewing.com 800 E. 16th St. (520) 791-2739 • Borderlands Brewing Co. borderlandsbrewing.com 119 E. Toole Ave. (520) 261-8773 • Dragoon Brewing Co. www.dragoonbrewing.com 1859 W. Grant Road, No. 111 (520) 329-3606 • Gentle Ben’s Brewing Co. www.gentlebens.com 865 E. University Blvd. (520) 624-4177 • Nimbus Brewing Co. www.nimbusbeer.com 3850 E. 44th St. (520) 745-9175 • Ten 55 Brewing 1055brewing.com 3810 E. 44th St., No. 315 (520) 461-8073 (Grand opening: Feb. 2) • Thunder Canyon Brewery www.thundercanyonbrewery.com 220 E. Broadway (520) 396-3480 7401 N. La Cholla Blvd. in Foothills Mall (520) 797-2652

InsideTucsonBusiness.com

JANUARY 25, 2013

LEGAL LEGAL FRONTLINE

Talking trash around social media ‘water cooler’ can get you fired The National Labor Relations Board (NLRB) has recently found that firing an employee for posting an unflattering message about her employer and its operations manager on another employee’s Facebook page was improper. Why? Section 7 of the National Labor Relations Act gives employees the right to engage in “concerted activities for the purpose of … mutual aid or protection.” Employers who interfere with this right subject themselves to an unfair labor claim, which can be made to the NLRB, even by at-will employees. Employers know that Internet chatter on Facebook, Twitter, LinkedIn and other social media venues supplement, enhance, and in some instances, replace the proverbial conversation around the water cooler. Internet chatter, however, can be much more damaging to an employer as it can reach a wider audience, doesn’t lend itself to moderate tones and becomes, in essence, a “permanent record” against the employer. Nevertheless, policies that bar disparaging communications, disrespectful conduct, or picture postings of the employer have all been found by the NLRB to be too broad. Further, the NLRB has found that employers who discipline and/or fire employees for such communications and conduct violate the National Labor Relations Act. Does this mean an employee can criticize her employer with impunity? Not always. With the rise of social media in the workplace, the NLRB has created what is known as a modified Atlantic-Steel/ Jefferson standard. These decisions, dating back more than 30 years, upheld terminations of employees who uttered a unprovoked obscenity at a foreman and handed out pamphlets to the public criticizing their employer’s product. Today’s NLRB borrowed a little from each of these decisions to craft the modified standard based on a case involving a popcorn plant. Under the NLRB’s “popcorn” test, if

• the employee’s postings or texts relate to terms and conditions of employment, they are protected by the National Labor Relations Act. ANN MORGAN • the employee is posting or texting as a part of an employee discussion of the workplace, the actions are protected by the National Labor Relations Act. • the employee is posting or texting from home and the comments are not verbal or physical threats, the action is protected by the National Labor Relations Act. • the postings can be viewed by third parties but are not critical of the employer’s product or business policies, the action is protected by the National Labor Relations Act. However, where the posting disrupts workplace discipline, contains information that damages the employer’s reputation and business, can be viewed by third parties and is accompanied by vulgar, obscene, threatening or intimidating language, the employee may lose the protection of the National Labor Relations Act. So what is the takeaway for employers? Encourage your human resources staff and labor relations attorneys to analyze the what’s, why’s, where’s, how’s and who’s involved in social media commentary about the office and who is viewing the comments before you take disciplinary action against an employee.

Contact Ann Morgan, who divides her practice between employment law and human resource issues, estate and trust litigation and general business advice, at amorgan@fclaw.com. Morgan is managing partner of Fennemore Craig Jones Vargas in Reno, Nev.

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8 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

INSIDE TRAVEL

Tucson Airport passenger numbers fall 1.4% in 2012 By David Hatfield Inside Tucson Business The number of airline passengers going through Tucson International Airport in 2012 fell by 1.4 percent — the second straight year of declining numbers and the lowest calendar year total in nine years. In December, 291,825 passengers went through the airport, the fewest December total since 2001, three months after the Sept. 11, 2001, terrorist attacks. For all of 2012, the airport served more than 3.6 million passengers, or 52,517 fewer than in 2011, according to data from the Tucson Airport Authority. The last time the annual total was lower was in 2003 when Tucson International served just 3.5 million passengers. In the intervening years since then, the airport grew to reach a record high in 2007, when more than 4.4 million passengers went through the airport. But totals started to dip, going below 4 million in 2009. The number ticked up 3 percent in 2010 but fell by 2 percent in 2011 and now 1.4 percent last year. The decline in passengers is attributed to airlines being more risk adverse as they cut back to wring more profits from each available seat. In particular, Tucson suffered last year from struggling Frontier Airlines trying to reinvent itself as an “ultra low fare” airline to try to make itself more attactive for a potential sale. The airline had been the leading carrier of passengers between Tucson and its Denver home base as recently as 2010. After initially announcing that it would merely suspend air service over the slow summer months, Frontier later announced it wouldn’t return at all. The move was not entirely unexpected. Frontier had dismissed all of its Tucson employees as part of the earlier move and had not made any obvious attempts to re-establish service here. Frontier’s move was compounded by the fact that United Airlines had previously planned to trim its Tucson-Denver schedule to just two daily round-trips. United has since reinstated a third daily round-trip and is gearing up to add a fourth round-trip on Feb. 11 and a fifth in March. Southwest Airlines also flies between Tucson and Denver, twice each day.

over 37 million, from 37.2 million through the first 11 months of 2011.

TUCSON INTERNATIONAL AIRPORT 2012 PASSENGER STATISTICS

American-US Airways

116,775

3.2%

106,460

2.9%

+10,315

+9.7%

More movement on a possible merger of American Airlines and US Airways as pilots for the latter are now voting on a memorandum of understanding agreement that would combine the two groups. It’s particularly significant since US Airways pilots have been working without a contract since the 2005 merger of US Airways with America West. Both sides stress that the agreement would take effect only if American and US Airways merge. When and if that happens remains up in the air. A month ago, there were reports that the goal was to get a deal made by early this month when American’s board of directors was scheduled to meet. But Tom Horton, chairman and CEO of American’s parent AMR Corp., said a decision was weeks away. And some analysts say it may never happen. Neither side is talking publicly, citing confidentiality agreements.

53,796

1.5%

150,482

4.1%

-96,686

-64.3%

LAX terminal makeover

-52,517

-1.4%

Tucson International Airport passenger traffic in December totaled 291,825, falling 3.7% from 302,871 in December 2011. Available seat capacity for the month was down 10.3% from December 2011 to an average of 5,716 outbound seats per day. This table shows each airlines’ passenger totals and market share for 2012 compared with 2011.

Airline

2012 2011 Change Passengers Market Passengers Market Passengers % Share

Non-stop destinations

Southwest

1,255,249

34.8%

1,229,453 33.6%

+25,796

+2.1%

838,611 22.9%

+8,184

+1.0%

503,140 13.8%

+21,440

+4.3%

Albuquerque, Chicago Midway, Denver, Las Vegas, Los Angeles, San Diego

American

846,795

23.5%

Chicago O’Hare, Dallas-Fort Worth, Los Angeles

United (Continental)

524,580

14.5%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways

413,305

11.5%

431,491 11.8%

-18,186

-4.2%

395,182

11.0%

398,562 10.9%

-3,380

-0.8%

Phoenix

Delta

Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska Seattle

Frontier

Discontinued service as of May 18 , 2012

Total

3,605,682

3,658,199

Source: Tucson Airport Authority Totals include passengers on branded flights operated by contracted carriers: American (includes American Eagle), Delta Connection (SkyWest), United Express (ExpressJet and SkyWest) and US Airways Express (Mesa and SkyWest).

The prognosis for 2013 isn’t promising. While there are indicators the economy is continuing to recover, airlines are still not adding flights. Already, Southwest has announced plans to eliminate Tucson-Albuquerque flights by June and will cut back on flights to both Los Angeles International and Las Vegas over the summer. Delta Air Lines is also planning to suspend its flights to Minneapolis-St. Paul from June until October. But airport authority officials remain optmistic that airlines will respond to passenger demand at Tucson International. Bonnie Allin, president and CEO of the Tucson Airport Authority, is scheduled to give her state of the airport address to members of the authority at their annual meeting Monday (Jan. 28).

A positive sign for the airport continues to be that airlines have cut capacity in greater numbers than the reduction in passengers using the airport. Out-bound capacity in December was down an average of 659 seats per day, or 10.3 percent. Using that as a measure, 83 percent of available seats going out of Tucson were filled in December, up from about 77 percent in December 2011.

Something to look forward to for Los Angeles-bound Southwest Airlines passengers: The airline and airport officials have agreed to spend about $400 million to fix up Terminal 1 at LAX that will end up with Southwest being the sole airline in the terminal. The plan calls for US Airways to move its LAX operations to Terminal 3, though presumably that could change if it merges with American Airlines, which is in Terminal 4. The Terminal 1 remodeling, which must be approved by the Los Angeles City Council, will be led by Southwest. The airline will recoup most of the money through reduced lease payments extending out to 2024. About $16 million of the improvements will be proprietary to Southwest and some of the security improvements most likely will be funded through grants.

Sky Harbor falls, too Passenger numbers also declined at Phoenix Sky Harbor International Airport. Through November, the latest month statistics are available for Sky Harbor, passenger counts for 2012 are down 0.5 percent to just

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Business Travel appears the fourth week of each month.

Going to LA? Tucson airport wants to know Inside Tucson Business The Tucson Airport Authority would like your answers to a few questions. Starting this month, Inside Tucson Business readers will be asked questions regarding airline service at Tucson International Airport. The answers to the questions may help guide future directions the airport might pursue. Mary Davis, senior director of business

development and marketing for the airport authority, says she knows the online polling is only a survey but she hopes the outcomes can help guide directions the airport might take. This month’s questions have to do with travel to the Los Angeles area. Los Angeles International Airport is currently the top destination from Tucson International, served non-stop by three airlines: Ameri-

can, Southwest and United. But the non-stop flights are only to LAX. That raises four questions: 1. Currently there are three morning non-stop flights to Los Angeles International Airport, departing Tucson at 5:50 a.m., 7 a.m. and 9:40 a.m. Ideally, what time would you most likely use a flight to LAX? 2. What is your preferred airline when going to Los Angeles?

3. Why is that your preferred airline? 4. If non-stop flights were available to other airports in the LA area, which would you choose: Burbank, Orange County, Long Beach, Ontario or would you continue to use LAX? To participate in the survey go to this story online — www.InsideTucsonBusiness. com, then go to “Features” and “Travel” in the navigation bar at the top of the page.

InsideTucsonBusiness.com

JANUARY 25, 2013

GOOD BUSINESS WOMEN IN BUSINESS

ABCs of Finance: Tips and tools for raising a smart investor The sooner the better. That’s a saying that applies to many facets of life, including educating children about money. Introducing sound financial habits early on will give your child a head start on the path to becoming an informed investor. Here are some ideas for raising a financially savvy kid.

Lessons for every age • Toddler. The first few years of life are critical for mental development. Toys that incorporate counting, such as building blocks, can help your child develop mathematical skills. • Age 5-plus. Board games are an entertaining way to teach kids about managing finances. Monopoly covers all the bases — earning money, saving and spending, capital budgeting, risk and reward and taxes. Other options for a family game night include the Game of Life, Moneywise Kids and Pay Day. • Age 8 to preteen. At this stage, children can start to accumulate income from allowances, cash gifts and even small businesses, such as lemonade stands. As your child begins dealing with actual money — even small amounts — talk to her or him about saving and spending. • Teenager. Your teenager may take his or her first summer job or build income through part-time work such as babysitting. Visit a bank together and set up personal savings and checking accounts in his or her name. This will give your child a sense of responsibility and familiarize her or him with different banking transactions. • Off to college. The transition to college is typically accompanied by credit card offers. Before sending your child off to school, discuss the pros and cons of credit cards and how to establish credit responsibly. Prepaid credit cards can help college students build their credit history. • Young adulthood. Amid the excitement of a first job, it’s all too easy to overlook retirement plan contributions.

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Remind your child of the benefits of opening a retirement account early.

Books and online games Books on personal finance GIGI SCHNEPPAT get children to read while teaching them an important life skill. Full of illustrations on all aspects of money and finance, Neale S. Godfrey’s “Ultimate Kids’ Money Book” is a great resource for ages 7–12. Written especially for parents, “Yes, You Can . . . Raise Financially Aware Kids” by Jack Jonathan includes activities that you can do with your child to put financial concepts into practice. One of the best websites for teaching kids about money is www.monetta.com/ game.htm, presented by the Monetta Young Investor Fund, a mutual fund that invests in companies familiar to children and teenagers. The games are free, organized by age group, and range from basic quizzes to more advanced activities. Leading by example makes good sense. Working with a financial advisor can help you set the right example for your child. Your advisor may even join you in fostering your child’s financial literacy.

Contact Gigi Schneppat, a financial advisor, at gigi@pwsaz.com or (520) 5293644. An investment adviser representative of the Commonwealth Financial Network, Schneppat is with Professional Wealth Strategies, 3573 E. Sunrise Drive, Suite 119. She is a member of the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO), whose members contribute this monthly column.

10 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

PROFILE

Kino Springs offers golfers an idyllic change of pace

Fighting for a pro-business community.

By Lee Allen Inside Tucson Business In the midst of the reported woes of golf in Southern Arizona — private courses closing and reopening over water issues and Tucson City Golf looking to shut down two courses — a duffer’s delight can be found south of Tucson in an idyllic Western setting in the middle of ranch country. Kino Springs Golf Course on the historic 5,280-acre Yerba Buena Ranch between Patagonia and Nogales is an 18-hole semi-private course that has seen some prestigious visitors over the years, including John Wayne, Elizabeth Taylor, and former owner Stewart Granger. It also gets some pretty good reviews. “Best course in Southern Arizona — immaculate greens, devious hole layouts, incredible views. Low budget and homespun, every shot is a challenge. Go there. Thank us later,” says AZgolf.com. I did. And thank you. The year-round Bermuda greens and

Join the Tucson Metro Chamber today. Phone (520) 792-1212 or visit TucsonChamber.org.

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Growing Businesses. Building Communities.

Director of Golf Keith Mundy test his skills at Kino Springs Golf Course.

Can we be frank? Why is it so many companies go out of their way to tell you how great their service is? Shouldn’t you be the one to decide that?

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fairways offer three sets of tees with differing skill levels, from the 5,974-yard white tee to the longest one on the course, the 6,445-yard blue tee. “The course begins in gentle meadowlands until it winds its way through canyon country,” says Director of Golf Keith Mundy. “Bordered by mature pine trees, the last five holes offer great views of the Santa Cruz River, open country, and a variety of wildlife.” In the critter category is everything from curious bovines to Spanish Barb horses, descendents of equines bred by Father Eusebio Kino at his mission in Sonora. Along the Santa Cruz River, waving grasslands studded with mesquite, oak, and cottonwoods provide a birdwatchers’ bounty — hawks, orioles, flycatchers, kingfishers, and more. “You don’t have to be a good golfer to enjoy a day here. If you’re both a golfer and a birdwatcher, this place is heaven,” says Mundy. “We’re a southern migration point

InsideTucsonBusiness.com

JANUARY 25, 2013

T: 520-722-0707

Tucson golfer George Babich test his skills at Kino Springs Golf Course.

for northern birds, and a northern migration point for southern birds, so we get them all.” Throw in a few wild turkeys from time to time. Mundy says, “If it walks or crawls, it lives here.” He should know, after 13 years at the site. “This is just a really cool old golf course and over the last decade we’ve done a lot of work to get it in good shape,” Mundy said. “It’s a tight course with very fast bent grass greens and narrow fairways and the scenery on the course, especially on the backside, is unbelievable.” Course record on the par 71 layout is a 63, shot several years ago by a local teenage boy. Descriptors of the property report: “The initial four holes are flat and wide open, followed by those where the driver stays in the golf bag.” Long-time Tucson golfer George Babich played a round recently and noted: “It’s in good shape with timely overseeding, fairways are excellent, greens (although small and elevated) are fast, and because of the elevation, the ball travels a bit farther. It’s a pleasant course to play.”

Over the years, Kino Springs has gone through phases of repair and disrepair, but “we’ve done a lot of work to improve conditions and our visitation rate reflects that,” says Mundy, citing an annual visitor turnout in excess of 22,000. “And we could always use more,” he says. Mundy points to the fact that the course represents a viable economic entity and a good contributor to the community in Santa Cruz County. “Our season starts in late fall and by mid-January, it starts to rock and roll through the end of April. This whole area is very popular with visitors and we get a lot of snowbirds coming in from everywhere throughout the country and Canada to join our local golfers. We’ve got the golfing option and if you’re after scenery, get on the road and drive…it’s all over the place,” Mundy says. The facility is in the process of negotiating to add a restaurant to go with its small clubhouse. Both weekday and weekend rates as well as group rates are reasonable, leading Mundy to observe: “We’re probably not on everybody’s To-Do list, but we should be.”

Lee Allen/ARIZONA FREELANCE

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12 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ON THE MENU

ARTS & CULTURE

Some like it hot; Some like it hotter

Saturday night is Carol Burnett night again this week in Tucson

In Southern Arizona, we’re conveniently spices he uses. Appropriate caution is conveyed to his customers so they’re located near the home of the habanero. prepared for the encounter, though he This spicy little jewel is a regular fixture on keeps a house-made yogurt sauce on menus across the region, something we stand-by which he says is an spice-heads celebrate. effective tool for extinguishing But what if you’re one of the fire if the flames get out of those who thinks a habanero is control. just ho-hum? If you’re not chicken when it Say hello to my little friend, comes to spicy wings, there are the Naga Bhut Jolokia (insert the three locations of Risky horror movie violin screech Business sports bars and what here). would a sports bar be without Originating from Nagaland, chicken wings? But get this, if India, the Naga Bhut Jolokia – you’re at the 6866 E. Sunrise otherwise known as the ghost Drive location and looking for pepper – is said to be the hottest MATT RUSSELL their spiciest wings, you won’t pepper in the world. It exceeds 1 find them printed on the menu. million units on the Scoville “Those who want them know where to find scale, the measurement of heat in chili them,” explains operational owner Jon peppers, compared to the, yawn, 350,000 units of the habanero. These peppers are so Alubowicz. About 2 percent of his chicken wing hot, defense officials in India have dissales are of the ghost variety, which are cussed using them to make tear-gas only available at his location. grenades as weapons in the war on “These are exceptionally hot,” warns terrorism. Alubowicz, and to cool things down, he Encouragingly, those of us who like to recommends ice cream from his dessert subject our palettes to such abuse don’t menu, “followed by an ice cream chaser.” have to fly to India, because two Tucson Alubowicz testifies the heat on his own restaurants are happy to render it themghost wings is even too much for him. “I ate selves. one, once.” Enough said. Kababeque Indian Grill, 845 E. UniverIf you’re like I am, and you like to take sity Blvd., features a menu of traditional your Scoville to stratospheric levels, don’t Indian dishes, from tikka masalas to be afraid of the ghost – just make sure the curries, all available in mild, medium and yogurt sauce and ice cream are within spicy options. The spicy versions get reach. additional shots of cayenne and red chili peppers, but manager Chandra Meanger Contact Matt Russell, whose day job is told me of an increasing number of CEO of Russell Public Communications, at customers who request extra-spicy. In mrussell@russellpublic.com. Russell is also these situations he’ll turn to the ghosts, if the host of “On the Menu Live” that airs 4-5 he has them in stock. p.m. Saturdays on KNST 97.1-FM/790-AM. Ghost peppers deliver an intense heat, so Meanger adds only a little so as not to overpower the other regional herbs and

will be up through March 29. The gallery is There was a time when Saturday night open from 8 a.m. to 5 p.m. weekdays. meant Carol Burnett night on TV. Her landmark comedy-variety show was a staple of the CBS line-up for 11 years, ending in 1978. Saturday (Jan. 26) is once again a night For the second consecutive to see Burnett, only this time year, Loft Cinema, 3233 E. you’ll have to go out. Speedway, will host a special A co-presentation of screening from the Sundance Film Broadway in Tucson and Festival. This year “The SpectacuUApresents, Burnett will be on lar Now,” a sweet tale of adolesstage at 8 p.m. at Centennial cent love between two unlikely Hall, 1020 E. University Blvd. teens, will be shown at 7:30 p.m. on the University of Arizona Thursday (Jan. 31). The film stars campus. The show is being Shailene Woodley (“The Descenbilled as a conversation with dants”), Jennifer Jason Leigh and Burnett, much like she was HERB STRATFORD Mary Elizabeth Winsted. Tickets famous for doing at the are $15 each and last year’s beginning of her TV show. screening was a sell-out. Be sure to Tickets are priced from $60 to $130, with stay after screening for a question-and-andiscounts for students, children and UA staff. The show is likely to sell out before the swer session with director James Ponsoldt. Two features screening this weekend at curtain goes up. Check out availability at the Loft are “Beware of Mr. Baker,” a www.uapresents.org/ or call the box office documentary about the musical genius but at (520) 621-3341. socially challenged drummer Ginger Baker, and the new “Dangerous Liaisons” film which sets the timeless tale of love as sport in 1930s China. A two-person ceramics exhibition is on At the multiplexes, there are new display through March 10 at Obsidian releases: “Parker” starring Jason Statham Gallery, 410 N. Toole Ave. Work by and Jennifer Lopez is joined by Arnold Hirotsune Tashima and Thaddeus Erdahl Schwarzenegger’s return to film in “The is joined by jewelry by Jude Clarke and Last Stand,” about a small town sheriff other gallery artists. Obsidian Gallery against a drug cartel. Also opening is the opens at 11 a.m. Wednesdays through raunchy comedy “Movie 43” with an Sundays and is open until 6 p.m., Wednesall-star Hollywood cast and the fantasy flick day, Friday and Saturday; until 8 p.m. on “Hansel and Gretel Witch Hunters” with Thursdays and until 2 p.m. on Sundays. Jeremy Renner and Gemma Arterton as An exhibit at the Joseph Gross Gallery, grown up paranormal exterminators. 1031 N. Olive Drive in the College of Fine Arts Building on the UA campus, features Contact Herb Stratford at herb@ the work of Chris Pappan and Ryan Singer ArtsandCultureGuy.com. Stratford teaches examining cross culture artistic references Arts Management at the University of Arizona. His and the impact they have on indigenous column appears weekly in Inside Tucson Business. peoples. The show, “Language of the Land,”

Film

Art

InsideTucsonBusiness.com

JANUARY 25, 2013

BRIEFS GET ON THE LIST

Next up: Commercial real estate brokers, Commercial building contractors, and Commercial real estate managers There’s been a delay in the production of the 2013 Book of Lists and it probably won’t arrive in mailboxes for another week. But work is underway gathering data for the 2014 edition. Upcoming lists are: • Feb. 1: Public school districts, Private elementary schools, Private secondary schools, Charter schools • Feb. 8: Colleges and universities, Specialty and training schools, Child care providers • Feb. 15: Commercial real estate brokers, Commercial building contractors, Commercial real estate managers • Feb. 22: Commercial photographers and Video production companies • March 1: Event planners, Convention and meeting facilities, Caterers If your business has been on a previous list in one of these categories, look for an email from Jeanne Bennett, List researcher for Inside Tucson Business, with details on how to update your profile. If you would like to add your business to one of these lists, go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page to create a profile. The Book of Lists is a year-round reference for thousands of businesses and individuals.

NEW IN TOWN

Planet Fitness opens in Oro Valley The first of 14 Planet Fitness locations planned for the Tucson region will hold it’s grand opening Feb. 1 at 10525 N. Oracle Road, Oro Valley. The 14,000 square-foot center features over 100 cardio machines, infrared therapy booths, tanning beds and traditional and hydro-massage. Planet Fitness caters to first-time and occasional gym-goers. Training sessions start at $10 per month with no commitment. The grand opening festivities will be held from 4 to 7 p.m. and include music, food and a raffle for a flat screen TV. Jessica Delfs, a contestant on The Biggest Loser TV program and a Tucson native will make a special guest appearance. Over the next few years, company officials plan to open 13 more franchised locations in the local market.

RETAIL

Blockbuster to close another 300 stores Blockbuster parent Dish Network Corp. said this week it is planning to shutter 300 of the video rental stores as online demand continues to eat away at the rental business.

The move will impact about 3,000 employees, or about 40 percent of its workforce. Specific locations for closure weren’t announced. The once ubiquitous chain, is now down to five stores in the Tucson region.

MINING

Miner Freeport-McMoRan sees improved Q4 Income and revenue for Freeport-McMoRan Copper & Gold Inc. climbed in the fourth quarter of 2012, but not enough to offset lower results for the entire year. Increased production from its mines resulted in income of $743 million, or 78 cents per share, on revenue of $4.5 billion for the quarter, compared with income of $640 million on revenue of $4.16 billion in the same quarter last year. For the year, Freeport-McMoRan reported income of $3.04 billion on $18 billion in revenue, compared with $4.56 billion in income on revenue of $20.9 billion for 2011. The company’s increased copper production is part of a plan to grow output from 3.66 billion pounds annually to more than 5 billion pounds a year, officials said. Copper production for 2012 was slightly lower than 2011 results, and production for gold was significantly down.

GOVERNMENT

military and eight other countries that helped pay for its development. The version being built for the Marines had a feature for short take-off and landing. The Arizona Air Guard at Tucson International Airport has been vying to be a training facility for the Air Force version of the F-35.

HEALTH CARE

Hospital group applauds Brewer on AHCCCS plan The Arizona Hospital and Healthcare Association issued a statement applauding Gov. Jan Brewer’s announcement support-

ing restoration and expansion of the state’s Medicaid program, the Arizona Health Care Cost Containment System (AHCCCS). The statement called Brewer’s announcement in her State of the State address as “a great first step towards restoring the will of Arizona voters who overwhelmingly supported the passage of Proposition 204 in two different elections to provide AHCCCS coverage for childless adults.” Brewer said the state would accept nearly $8 billion in federally funding to support AHCCCS. The restoration and expansion of AHCCCS would provide healthcare coverage to an estimated 300,000 low-income.

Wings Like Eagles awards $65,000 to non-profits Five non-profits in the Tucson region are the recipients of a total of $65,000 in grant awards from the Wings Like Eagles Foundation, the philanthropic arm of Golden Eagle Distributors Inc. The recipients are: • $15,000 to Arizona’s Children Association • $15,000 to Casa de los Ninos Inc. • $15,000 to Gabriel’s Angels • $10,000 to Junior Achievement of Southern Arizona • $10,000 to the Ben’s Bells Project “We are pleased to support these organizations and help them continue their invaluable work in our community,” said Christopher Clements, president of the Wings Like Eagles Foundation. “This year’s grant recipients share the mission of the foundation to improve the quality of life of all Tucsonans. Together, they help make Tucson better.” Since 2003, the Wings Like Eagles Foundation has awarded more $1.6 million to nonprofits. The foundation was created in memory of the late William M. Clements, founder of Golden Eagle Distributors.

City fires former TCC director Obermaier After being demoted in March and then put on “imposed leave” during an investigation, Tommy Obermaier, former director of the Tucson Convention Center, was officially fired Jan. 18 by Tucson City Manager Richard Miranda. According to city documents, Obermaier double-booked events on numerous occasions and allowed events to take place without signed contracts from promoters which put the TCC and the city “in a position of significant liability.” Obermaier was demoted from director of the TCC last March and has been suspended since August. He continued to receive a regular paycheck on his nearly $40,000 per year annual salary during the suspension. Obermaier can appeal his dissmissal to the Civil Service Commission. The TCC this fiscal year is expected to receive a city subsidy of more than $2 million.

MILITARY

Marine version of F-35 grounded by Pentagon Officials of the Pentagon and Lockheed Martin are looking into an issue with a fuel line on the Marine Corps version of the F-35, which was grounded as of Jan. 18. Lockheed is building three models of the radar-evading F-35 fighter jet for the U.S.

Wings Like Eagles recipients Recipients of grant awards from the Wings Like Eagles Foundation are, from left, Susie Huhn, Casa de los Niños Inc.; Jeannette Maré, the Ben’s Bells Project; Denise Ensdorff, Arizona’s Children Association; Autumn Rentmeester, Junior Achievement of Southern Arizona; MeMe Aguila, Gabriel’s Angels, along with Molly, a Gabriel’s Angels therapy dog.

LOG ON TODAY! www.InsideTucsonBusiness.com

14 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

MEDIA

A year after format changes, how 5 radio stations are faring By David Hatfield Inside Tucson Business Last week, this column reported the latest quarterly Tucson radio ratings from Arbitron. It was the “family reunion” demographic, as Herb Crowe, operations manager at Cumulus Tucson group, used to call it — and for all I know, he still does. The point being that in the world of radio no station can be, or tries to be, all things to all people. The all-encompassing figure estimates what all listeners, ages 12 and older, listen to over a typical week. It’s sort of an indicator of a station’s relative popularity but hardly the way an advertiser buys commercial time. The latest Arbitron ratings, however, cover the one-year anniversary mark on some significant radio format changes that took place among five stations in October and November 2011. That’s usually about the amount of time it’s supposed to take for listener habits to settle in. Here’s where things stand: • The Groove KTGV 106.3-FM, which revamped its rhythmic oldies format from its previous incarnation as Mega, so far seems to have had the most success, especially in this latest ratings. While the Journal Broadcast Group station still ranks in the middle of the pack overall, it’s No. 5 among listeners ages 18-34 and is a top 10-ranked station among listeners 25-54, two major demographic targets sought by advertisers. • The jury is still out on i97-5 KSZR 97.5-FM, partly because it hasn’t been a year since Feb. 2, 2012, when the Cumulus Media station dumped its adult contemporary music and “Bob” persona in favor of a top 40 format. The station has cracked into the top 10 fattracting 18-34 year-old listeners. Another goal was supposed to be stealing listeners away from Clear Channel’s KRQ 93.7-FM, which might be happening because it isn’t quite as dominate in the ratings as it once was. • If the quarterly ratings were taken solely at face value, the Spanish adult contemporary format on La Preciosa KTZR 1450-AM is finally back as a ratings winner, 3½ years after Clear Channel gave it up. The difference now is that since Nov. 21, 2011, the format is on an AM sig-

TOP 10RATED MORNING RADIO SHOWS Rank

Show

Station

1 Max, Shannon and Porkchop

Average quarter-hour audience 6-10 a.m. weekdays

KIIM 99.5-FM

12,710

2T Bobby Rich Morning Mix

Mix-FM KMXZ 94.9-FM

11,865

2T Johnjay and Rich

KRQ 93.7-FM

11,865

4T The Frank Show

KLPX 96.1-FM

7,625

4T Garret Lewis Morning Ritual

KNST 97.1-FM/790-AM

7,625

4T Tim Tyler

K-Hit KHYT 107.5-FM

7,625

7T Los Hijos de La Manaña

La Caliente KCMT 102.1-FM

6,780

7T Jon Justice

The Truth KQTH 104.1-FM

6,780

KFMA 92.1-FM/101.3-FM

4,700

Hot 98.3 KOHT 98.3-FM

5,085

9 Fook 10 Mojo in the Morning Source: Arbitron Inc.

TOP STATIONS: ADULTS 2554

TOP STATIONS: ADULTS 1834 Rank

Station

Rank

Average audience

Station

1 KRQ 93.7-FM

3,345

1 Mix-FM KMXZ 94.9-FM

2 KIIM 99.5-FM

Average audience 4,550

2,630

2 KIIM 99.5-FM

4,170

3T Hot 98.3 KOHT 98.3-FM

2,150

3 KRQ 93.7-FM

3,415

3T KFMA 92.1-FM/101.3-FM

2,150

4T K-Hit KHYT 107.5-FM

3,035

5 The Groove KTGV 106.3-FM

1,670

4T KLPX 96.1-FM

3,035

6 Mix-FM KMXZ 94.9-FM

1,435

7T La Caliente KCMT 102.1-FM

1,195

7T i97-5 KSZR 97.5-FM

1,195

7T My 92.9 KMIY 92.9-FM

1,195

10T KLPX 96.1-FM

955

10T La Poderosa KZLZ 105.3-FM

955

6 KFMA 92.1-FM/101.3-FM

Source: Arbitron, average audience per quarter hour, adults ages 18-34 Monday through Sunday, 6 a.m.-midnight.

2,655

7T La Caliente KCMT 102.1-FM

2,275

7T Hot 98.3 KOHT 98.3-FM

2,275

7T The Truth KQTH 104.1-FM

2,275

10T The Groove KTGV 106.3-FM

1,895

10T My 92.9 KMIY 92.9-FM

1,895

10T La Poderosa KZLZ 105.3-FM

1,895

Source: Arbitron Inc.,average audience per quarter hour, adults ages 25-54 Monday through Sunday, 6 a.m. to midnight. `

nal that had been struggling in the ratings — as an oldies music station and then as an all-comedy station. The question, however, is that these latest ratings show a huge 150 percent increase in audience share from the previous quarter, coincidentally at a time when the market’s leading Spanish station, Lotus’ La Caliente KCMT 102.1FM, saw its audience drop. That could be a fluke that won’t be determined until more ratings come out. Another big question mark was raised

this week with the apparent end of the syndicated Alex “El Genio” Lucas, whose morning show got some of the highest ratings on La Preciosa. • On Nov. 28, 2011, KNST added 97.1-FM to its 790-AM signal in a move that was supposed make Clear Channel’s conservative news-talk station more appealing to younger listeners. If that’s happening, it’s not obvious. Arbitron doesn’t report KNST’s FM ratings separate from

AM. The station’s overall audience share is up 0.6 of a share point from what it was as an AMonly station a year ago. Curiously, KNST got nosed-out by Journal’s the Truth KQTH 104.1FM among core 25-54 year-old listeners in the time period that includes Rush Limbaugh and Sean Hannity. • Of all the changes, My 92.9 KMIY 92.9-FM might be the source of the biggest concern for its Clear Channel programmers. Since changing from the modern music format of the Mountain on Nov. 18, 2011, the hot adult contemporary format has lost about as many listeners as it has gained. Further, the change only seems to have made its closest adult contemporary music competitor, Journal’s Mix-FM KMXZ 94.9-FM even more popular overall. To its credit, My 92.9 has attracted more younger listeners. Still, though, of the seven most powerful commercial FM signals in the Tucson market, 92.9-FM is the only one not among the top 10-rated stations in the market.

KIIM to ‘Nash’? New York now has a country music station for the first time since 1996. So why do we care in Tucson? As part of the announcement of the launch of the station on Monday (Jan. 21), Cumulus Media said it is rebranding all 83 of its country music stations to match the New York station, which is calling itself “Nash (short for Nashville) 94.7.” Presumably that includes Cumulus’ KIIM 99.5-FM in Tucson. The company said the rebranding was to start Tuesday but this week the change wasn’t obvious yet on KIIM. That’s not surprising. Last year, word got out the company was going to change to the i97-5 format nearly four months before it actually took place and earlier this year the company announced an alignment with iHeartRadio weeks before the Tucson stations acknowledged it. Since 1983 when it went on the air, KIIM has been a Tucson ratings leader and, although other country competitors have come and gone since then, it has had the format all to itself in the market for the past 11 years.

InsideTucsonBusiness.com

JANUARY 25, 2013

MEDIA m a

A “Celebration of Life” memorial service for former advertising executive Earl Wettstein will be held at 2 p.m. Feb. 2 at San Pedro Chapel, 5230 E. Fort Lowell Road. Friends are invited to share their favorite stories of Wettstein, who died suddenly Jan. 9, of a heart attack.

COM MUNI TY t

Tucson ter

Wettstein celebration

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Tucson Media appears weekly.

a re

Johnjay Van Es and Rich Berra have agreed to a “multi-year contract extension” with Clear Channel Media and Entertainment. The “Johnjay and Rich” morning show, which started in Tucson on KRQ in 2001, now originates in Phoenix and broadcasts in eight markets: Las Vegas; Portland, Ore.; Albuquerque; Colorado Springs and Fort Collins, Colo.; and Tucson, Phoenix and Flagstaff in Arizona. Former Republican presidential candidate Herman Cain launched his syndicated radio talk show on Monday (Jan. 21) and it airs in Tucson from 9-11 weeknights on the Voice KVOI 1030-AM. Nationally, the show replaced Neal

Manage me urce so nt e R

Names in news

Boortz, who retired this month. The Truth KQTH 104.1-FM, which had been airing Boortz’ show opted to re-arrange its schedule, moving a revamped Laura Ingraham show into the vacated time slot and adding Rusty Humphries. KVOI’s broadcasts of Cain’s show are being delayed from the mornings.

Society fo rH u

In addition to radio, Cumulus says the “Nash” branding will include a monthly Nash Magazine to launch during the last half of this year, as well as social media, concerts and TV programming.

NNOVATION RSHIP t I E D A E TECHNOLOGY t DIVERSITY t L

Celebrating Innovation in the Workplace Event Keynote Speaker: Pamela Jett, Jett Communications, Inc.

Save the Date Tuesday, March 12, 2013 2:00-5:00 pm 5:00 pm Champagne Toast Double Tree Hotel at Reid Park 445 S. Alvernon Way, Tucson, Arizona 85710 INNO VATIO Nt

COMM OLOGY t N H C E T LEADERSHIP t DIVERSITY t

UNITY

16 JANUARY 25, 2013

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InsideTucsonBusiness.com

JANUARY 25, 2013

PEOPLE IN ACTION NEW HIRES The law firm of Quarles & Brady LLP has announced that Jaimie R. Anderson has joined the firm’s Tucson office as an associate in the intellectual property practice group. Anderson’s experience includes patent prosecution involving a wide range of technologies including organic chemistry, resins, medicinal chemistry, immunology, materials science, biotechnology, pharmaceuticals, mechanical and medical devices. She earned both her law degree and a Ph.D. in chemistry from Emory University and her undergraduate degree, highest honors,

from the Georgia Institute of Technology. The Metropolitan Pima Alliance (MPA) has hired Allyson Solomon to lead the organization’s government relations efforts. Solomon comes to MPA from the Tucson Metro Chamber where she served as a public policy analyst. Previously, Solomon worked for the Town of Oro Valley and was involved with the town’s Economic Development Summit in January 2011. The Westin La Paloma has hired James M. Gelfand as director of sales and marketing. Gelfand will direct group and leisure

JAIMIE R. ANDERSON

sales teams and programs, catering and convention services. Prior to joining the Westin La Paloma team, Gelfand was director of sales and marketing at Turnberry Isle Miami and The Westin Copley Place. He served as director of sales at The Westin Diplomat Resort and Spa and The Walt

ALLYSON SOLOMON

JAMES M. GELFAND

{YOUR NAME HERE} To announce a professional promotion, appointment, election, new hire or other company personnel actions, fax press releases to (520) 295-4071, Attention: People; or email submissions to pmcnamara@azbiz.com. Include an attached photo at 300 dpi.

Disney World Swan and Dolphin Resort in Florida. Lewis Humphreys has been hired as Tech Launch Arizona’s marketing and communications manager. In his new role, Humphreys will create marketing campaigns to build awareness of TLA services to faculty in the

initial stages of taking their discoveries to market, and develop channels and strategies to communicate the value proposition of their inventions to potential investors and companies that will adopt these inventions and transform them into products and services. Humphreys holds a masters degree in political economy from The London School of Economics. APPOINTMENTS The TREO Board of Directors has announced the following new leadership additions: New Vice Chairman of the Board/

Chair-Elect: Guy Gunther, vice president and general manager, Tucson and Greater Arizona, CenturyLink. New Chairman’s Circle Members include: Karen D. Mlawsky, CEO, University of Arizona Medical Center; Sandra Watson, president and CEO, Arizona Commerce Authority. TREO Officers include: Chairman Steve Eggen, (ret.) CFO, Raytheon Missile Systems; Immediate Past Chairman Paul Bonavia, chairman and CEO, UNS Energy Corp. and Tucson Electric Power Company; Secretary/Treasurer Lisa Lovallo, market vice president, Southern Arizona, Cox Communications.

CALENDAR SPECIAL EVENTS

Isaac Marks Memorial Lecture Monday (Jan. 28) 5:30 to 6:30 p.m. James E. Rogers College of Law 1201 E. Speedway Prof. Martha Nussbaum, philosopher and award-winning author, will present at The University of Arizona James E. College of Law, discussing new religious intolerance Contact: Marissa White marissa.white@law.arizona. edu (520) 621-8430 www.law.arizona.edu Building a Diverse and Vibrant Community Award Dinner Saturday (Feb. 9) 6:15 to 9 p.m. Westin La Paloma Resort & Spa 2800 E. Sunrise Drive Contact: Naomi Weiner director@aifltucson. org 520.322.9544 www.aifltucson.org Proceeds from this dinner event will benefit the Arizona Israel Friendship League Maximize Your Direct Mail Muscle: Links into Lists, Leads and More Tuesday (Feb. 12) 11:30 a.m. to 12:30 p.m. The Tucson Metro Chamber 465 W. St. Mary’s Road A Business Growth Series Workshop presented by Tom Farmer of the Pima County Public Library and Dawn Vandaveer of Prototypes. Contact: Shirley Wilka swilka@tucsonchamber.org (520) 792-2250 ext. 132 $10/person; non-

members: $20/person tucsonchamber.org

2990 N. Swan Road Suite 145 Information: www. grotucson.com

REGULAR MEETINGS

Foothills Rotary Club First and third Fridays Noon Michelangelo’s 420 W. Magee Road Lunch Optional Info: (520) 909-9375

Independent Business Networking Tucson “IBNT” Second and fourth Tuesdays El Parador 2744 E. Broadway RSVP: Jennifer Row at (520) 603-3315 or jenniferrr@ novahomeloans.com Cost: First time is free

The Foothills Club of Tucson Second Friday 12:30 to 2:30pm Hacienda Del Sol 5501 N. Hacienda Del Sol Rd Contact: Leslie Hargrove (520) 445-9237 www.foothillscluboftucson.com

Inside Connections Second and fourth Wednesday, 7:15 a.m. Home Town Buffet 5101 N. Oracle Road RSVP: Eric Miller at (520) 979-1696

Fountain Flyers Toastmasters Every Tuesday 6:30 a.m. Coco’s Restaurant 7250 N. Oracle Road Information: Cheryl at (520) 730-4456 Cost: Free to visit

Institute of Management Accountants Third Thursday, (September through May) 6:30 p.m. to 8 p.m. Old Pueblo Grille 60 N. Alvernon Way RSVP: Gale McGuire (520) 584-3480 or gale. mcguire@roberthalf.com

Got a business challenge, 30 minutes & 20 bucks? Every Tuesday and Thursday 8 to 9 a.m. Savaya Coffee Market 5530 E. Broadway Ste.174 Info: Dale Bruder, Dynamic Strategist strategy@ dalebruder.com (520) 331-1956 www.dalebruder.com $20 Group Referral Organization networking group First and third Wednesdays Luna Bella

“Real Estate Investment Plan” Keller Williams Southern Arizona 1745 E. River Road, Ste. 245

Third Tuesday 6 p.m. Workshop for individuals considering investment RSVP by noon Mondays (520) 909-9375 Kiwanis Club of Oro Valley Wednesdays, 7 a.m. Holiday Inn Express 10150 N. Oracle Road Info: jepsenaz@comcast.net Cost: $8 LeTip Midtown Every Tuesday, 7:01 to 8:31 a.m. El Parador Restaurant 2744 E. Broadway RSVP: (520) 296-9900 Cost: $10 LeTip Tucson Executives Chapter meeting Every Tuesday, 11:30 a.m. to 1 p.m. Macayo’s Mexican Kitchen 7360 N. Oracle Road RSVP: (520) 299-9600, bwmartin@cox.net LeTip International I-19 Business Networkers Every Tuesday, 11:30 a.m. to 1 p.m. Amado Territory I-19 exit 48 Information: (520) 591-5500

{YOUR EVENT HERE} Submissions: Deadline for calendar submissions is 10 days prior to publication. Post your event online at www. insidetucsonbusiness.com/calendar. Email any questions to pmcnamara@azbiz.com.

A complete calendar listing is at

InsideTucsonBusiness.com

Cost: $15 Tucson Breakfast Lions Club Wednesday 7 to 8 a.m. Radisson Suites Tucson 6555 E. Speedway TBLCTREA@Dakotacom.net Marana Chamber of Commerce Breakfasts First Wednesday, 7:30 a.m. Taste of Texas 8310 N. Thornydale Road RSVP: (520) 682-4314 Marana Chamber of Commerce Mixer Fourth Tuesday of each month 5:30 to 7:30 p.m. Locations vary Information: www. maranachamber.com Meet Toastmasters Every Wednesday 6:15 a.m. Chafﬁns Diner 904 E. Broadway Contact: Hitch Paprocki hitchpaprocki@hotmail.com (520) 907-4455 www.toastmasters.org Metropolitan Tucson Convention & Visitors Bureau First Tuesday Monthly Luncheon 11:45 a.m. to 1 p.m. Arizona Inn 2200 E. Elm St. RSVP Required: (520) 7702131 or www.visitTucson. org/PartnerRSVP Cost: $25 MTCVB Partners; $30 Others

NAWBO Monthly Mixer Third Thursdays 4 to 7 p.m. Locations vary Info: info@nawbotucson.org NAWBO Monthly Breakfast Fourth Tuesdays, 8 to 9:30 a.m. Locations vary Info: Morella Bierwag, (520) 326-2926 or info@ nawbotucson.org NAWBO Monthly Luncheon Second Tuesdays 10:30 a.m. to 1:30 p.m. Locations vary Info: Morella Bierwag, (520) 326-2926 or info@ nawbotucson.org National Association of the Remodeler’s Industry (NARI) Tucson Third Tuesday 5:30 p.m. Varies, call for location Information: (520) 310-3386 rebecca@ nariofsouthernarizona.com Cost: Free to members and ﬁrst timers Networks @ Work First Wednesdays 11:30 a.m. to 12:30 p.m. Sullivan’s Steak House 1785 E. River Road Contact: Ricardo Carrasco at (520) 977-8812 or Ricardo@gsﬂoans.com Cost: Meal from menu ($12-$25)

18 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Investing is not a sprint — it’s a marathon Investors sometimes may get frustrated because their investments don’t seem to produce quick results. And perhaps that’s understandable in a fast-paced society in which we’ve grown accustomed to instant gratification. But investing is, by nature, a long-term activity. If you look at it in terms of an athletic event, it’s not a sprint, in which you must pull out the stops to quickly get where you’re going. Instead, it’s more like the 26.2-mile race known as a marathon. As an investor, you can learn a few things from marathoners, such as: • Preparation — No one gets up one day and is ready to run a marathon. Marathon runners train for months, and even years. As an investor, you too need to prepare yourself for the “long run.” How? By learning as much as you can about different asset classes, types of risk and all the other factors associated with investing. • Patience — Marathoners know they have a long haul in front of them, so they typically create a “game plan” — one that takes into account such factors as their physical condition, the weather on race day, and the characteristics of the course, such as whether it’s hilly or flat. Investors should also create a strategy — one that encompasses their goals and ways of working toward them — and stick to this strategy. • Perseverance — Marathoners may deal with injuries, dehydration and other setbacks, either while training or during the actual race. But as long as they’re able to keep going, they do so. As an investor, you, too, will face obstacles, such as market downturns. But as long as you continue investing and don’t head to the “sidelines,” you have a good chance of making progress toward your goals. • Vision — Marathoners study the course

they’re on, so they know what’s ahead — and where they’re going. As an investor, you also need a vision of what lies in front of you — the number of years until your retirement, the type of retirement TIM BEITHON lifestyle you anticipate, what sort of legacy you plan to leave, and so on. Your vision will help drive your investment decisions. • Proper coaching — Not all marathoners have individual coaches, but many have at least gone to clinics or joined running clubs so they could learn more about the various aspects of this grueling event. As an investor, you can certainly benefit from guidance or “coaching” in the form of a financial professional — someone who knows your individual needs, goals and risk tolerance and who has the experience to make recommendations that are appropriate for your situation. Every marathoner is familiar with the difficulties of the challenge and the satisfaction of finishing the race. As an investor, you also will be tested many times. Furthermore, you’ll never really cross the “finish line” because you’ll always have goals toward which you’ll be working. Yet, by emulating the traits of successful marathoners, you can continue working toward your objectives — and perhaps you’ll avoid the blisters, too.

Contact Tim Beithon, a financial advisor with Edward Jones, at Tim.Beithon@ edwardjones.com or (520) 546-1839. Beithon’s office is at 9525 E. Old Spanish Trail, Suite 111.

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TUCSON STOCK EXCHANGE Stock market quotations of some publicly traded companies doing business in Southern Arizona

Company Name

Symbol

Jan. 23

Jan. 16 Change

52-Week 52-Week Low High

Tucson companies Applied Energetics Inc CDEX Inc Providence Service Corp UniSource Energy Corp (Tucson Electric Power)

AERG.OB CEXIQ.OB PRSC UNS

0.03 0.09 19.03 43.97

0.04 0.08 17.17 43.85

-0.01 0.01 1.86 0.12

0.02 0.01 9.56 35.20

0.12 0.60 19.67 45.12

9.15 1.42 2.41 11.42 64.26 10.21 96.48 15.40 56.39 4.13 20.89 42.02 40.00 37.77 42.05 16.88 102.12 40.35 52.61 13.78 81.04 68.16 21.82 35.02 35.55 66.46 68.27 204.72 34.47 63.67 5.20 46.23 37.19 18.63 43.45 27.66 1.30 42.61 37.88 43.37 59.00 38.23 39.15 42.81 50.57 68.71 18.35 20.84 58.20 54.38 19.85 48.03 45.06 13.82 11.36 43.88 39.81 61.04 18.02 33.08 50.82 25.00 135.35 20.04 15.07 33.09 69.49 39.52 34.95 11.48 22.58

8.85 1.56 2.50 11.57 63.30 10.31 95.02 14.63 55.97 3.99 20.59 42.50 39.17 35.01 41.67 16.91 101.15 39.60 51.91 13.65 81.01 66.68 20.97 34.33 34.39 63.76 66.55 192.26 33.46 63.13 5.13 46.45 36.66 16.14 42.75 26.14 1.24 40.61 35.83 42.44 58.18 37.94 38.76 41.91 50.65 66.95 18.72 19.35 57.71 53.05 17.64 48.30 45.00 13.57 11.20 42.88 41.33 61.22 18.34 32.37 49.00 26.02 131.11 20.20 14.40 33.18 69.17 39.55 35.16 11.25 22.25

0.30 -0.14 -0.09 -0.15 0.96 -0.10 1.46 0.77 0.42 0.14 0.30 -0.48 0.83 2.76 0.38 -0.03 0.97 0.75 0.70 0.13 0.03 1.48 0.85 0.69 1.16 2.70 1.72 12.46 1.01 0.54 0.07 -0.22 0.53 2.49 0.70 1.52 0.06 2.00 2.05 0.93 0.82 0.29 0.39 0.90 -0.08 1.76 -0.37 1.49 0.49 1.33 2.21 -0.27 0.06 0.25 0.16 1.00 -1.52 -0.18 -0.32 0.71 1.82 -1.02 4.24 -0.16 0.67 -0.09 0.32 -0.03 -0.21 0.23 0.33

7.97 0.36 1.48 6.72 50.95 5.30 77.83 11.20 50.89 2.97 14.97 24.61 25.61 18.19 22.19 12.13 81.00 36.50 41.48 8.42 43.70 50.27 13.45 30.54 21.38 44.22 52.21 181.85 27.10 53.38 3.94 30.83 27.96 6.46 41.35 20.98 1.04 21.33 24.76 37.02 53.18 32.31 33.93 23.41 40.64 56.59 15.69 7.42 47.50 38.63 14.73 33.03 38.40 6.25 7.76 39.01 25.77 49.75 14.04 26.06 33.62 17.45 104.08 18.36 6.78 27.30 57.18 28.53 28.77 7.80 16.40

10.92 1.66 3.65 12.20 64.79 10.44 96.56 27.95 60.00 4.93 21.16 43.25 40.28 38.56 42.78 17.50 105.97 43.43 52.63 14.15 89.98 68.55 22.79 48.96 35.82 66.48 68.40 211.79 37.70 64.06 5.85 46.87 38.62 18.99 55.25 27.91 1.81 42.69 37.97 43.44 62.83 42.17 41.84 43.26 53.50 71.25 43.18 21.15 59.34 54.43 23.16 49.28 85.90 14.32 11.60 46.08 42.55 65.80 18.50 34.24 50.97 26.24 136.19 56.29 15.64 35.46 77.60 39.60 36.60 11.66 22.81

Southern Arizona presence Alcoa Inc (Huck Fasteners) AA AMR Corp (American Airlines) AAMRQ Augusta Resource Corp (Rosemont Mine) AZC Bank Of America Corp BAC Bank of Montreal (M&I Bank) BMO BBVA Compass BBVA Berkshire Hathaway (Geico, Long Cos) BRK-B* Best Buy Co Inc BBY BOK Financial Corp (Bank of Arizona) BOKF Bombardier Inc* (Bombardier Aerospace) BBDB CB Richard Ellis Group CBG Citigroup Inc C Comcast Corp CMCSA Community Health Sys (Northwest Med Cntrs) CYH Computer Sciences Corp CSC Convergys Corp CVG Costco Wholesale Corp COST CenturyLink (Qwest Communications) CTL Cvs/Caremark (CVS pharmacy) CVS Delta Air Lines DAL Dillard Department Stores DDS Dover Corp (Sargent Controls & Aerospace) DOV DR Horton Inc DHI Freeport-McMoRan (Phelps Dodge) FCX Granite Construction Inc GVA Home Depot Inc HD Honeywell Intl Inc HON IBM IBM Iron Mountain IRM Intuit Inc INTU Journal Communications (KGUN 9, KMXZ) JRN JP Morgan Chase & Co JPM Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN KB Home KBH Kohls Corp KSS Kroger Co (Fry's Food Stores) KR Lee Enterprises (Arizona Daily Star) LEE Lennar Corporation LEN Lowe's Cos (Lowe's Home Improvement) LOW Loews Corp (Ventana Canyon Resort) L Macerich Co (Westcor, La Encantada) MAC Macy's Inc M Marriott Intl Inc MAR Meritage Homes Corp MTH Northern Trust Corp NTRS Northrop Grumman Corp NOC Penney, J.C. JCP Pulte Homes Inc (Pulte, Del Webb) PHM Raytheon Co (Raytheon Missile Systems) RTN Roche Holdings AG (Ventana Medical Systems) RHHBY Safeway Inc SWY Sanofi-Aventis SA SNY Sears Holdings (Sears, Kmart, Customer Care) SHLD SkyWest Inc SKYW Southwest Airlines Co LUV Southwest Gas Corp SWX Stantec Inc STN Target Corp TGT TeleTech Holdings Inc TTEC Texas Instruments Inc TXN Time Warner Inc (AOL) TWX Ual Corp (United Airlines) UAL Union Pacific Corp UNP Apollo Group Inc (University of Phoenix) APOL US Airways Group Inc LCC US Bancorp (US Bank) USB Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT Walgreen Co WAG Wells Fargo & Co WFC Western Alliance Bancorp (Alliance Bank) WAL Zions Bancorp (National Bank of Arizona) ZION Data Source: Dow Jones Market Watch *Quotes in U.S. dollars, except Bombardier is Canadian dollars.

InsideTucsonBusiness.com

JANUARY 25, 2013

INSIDE REAL ESTATE & CONSTRUCTION

Forecasting frenzy: predictors to present prognoses By Roger Yohem Inside Tucson Business Like flowery perennials, fresh real estate forecasts are popping up all over. The Greater Tucson chapter of the Building Owners and Managers Association (BOMA) and the Southern Arizona chapter of the Institute of Real Estate Management (IREM) will stage an event Tuesday (Jan. 29) with former University of Arizona economist, professor and author Gerald Swanson leading a forum of prognosticators. Swanson, an in-demand economic analyst who retired from the UA in December, has clients that include the U.S. government, Arizona legislature and Fortune 500 corporations. He co-authored the book “Bankruptcy 1995: The Coming Collapse of America and How to Stop It” and has appeared on national telecasts including, the “Today” show, “Larry King Live,” and “Moneyline.” Tuesday’s event also will feature an update on economic development and commercial real estate activities. The scheduled participants are: • Michael Guymon, vice president of Tucson Regional Economic Opportunities (TREO), who focuses on business retention, recruitment and expansion initiatives. • Ken Marcus, director of the UA Science & Technology Park, who is responsible for the finances and operations of both the UA Tech Park and UA Bio Park. • Melanie Morrison, co-owner and designated broker for MEB Management Services, which manages more than 20,000 units and has more than 600 employees. • Swain Chapman, founder of Chapman Management Group and has participated in the acquisition of hundreds of acres of commercial land and more than 3 million square

THE PULSE: Median Price Active Listings New Listings Pending Sales Homes Closed

TUCSON REAL ESTATE

1/14/2013

1/7/2012

$149,000 5,207 447 405 221

$150,000 5,189 503 396 159

Source: Long Realty Research Center

By percent sold, the best-selling areas were 85706, the southeast part of the region near Alvernon Way and Drexel Road, where 34 of 51 listings sold, a 67 percent ratio. The far southwest side zip code of 85746, in the Ajo Way-Mission road area, had 33 of 60 listings sell, for a 55 percent ratio. And 21 or 38 listings sold, also a 55 percent ratio, in the 85757 zip code, which is on the southwest side near Ryan Airfield. Year-over-year, the Realtors’ listing service reported that housing inventory declined 9.4 percent. Currently, the biggest supply of homes are priced in the range of $200,000 to $249,999 where there are 525 listings. There are 163 homes currently on the market priced at $1 million or more.

Sales and leases Two upcoming forums will focus on forecasting the future of commercial real estate in Southern Arizona.

feet of commercial properties. • Barbi Reuter, associate broker for Cushman & Wakefield/Picor Commercial Real Estate Services, who founded the firm’s property management division. The group markets more than 3 million square feet of office, medical, industrial and retail space. Tuesday’s event will be at the Viscount Suite Hotel, 4855 E. Broadway. It starts at 7:45 a.m. with a buffet breakfast and will end by noon. Cost is $35, but is included as part of a regular BOMA membership. Register online at www.bomagt.org.

CCIM is Feb. 12 Don’t close that appointment book yet: On Feb. 12, there will be another forecast put on by another organization with an acronym to decipher: CCIM. The Southern Arizona chapter of Certified Commercial Investment Member will bring out 15 experts to present their insights, opinions and predictions for 2013. In a “competitive” format, the experts will foretell the 2013 future of the office, retail, multifamily, land, industrial and finance sectors. The keynote speaker is Fletcher McCusker, chairman of the Rio

WEEKLY MORTGAGE RATES Program 30 YEAR 15 YEAR 5/1 ARM

Current

Last Week

1/22/2013

One 12 Month 12 Month Year Ago High Low

3.50% 3.625%APR 3.38% 3.50%APR 4.95% 2.88% 3.125%APR 2.88% 3.125% APR 4.22% 2.63% 2.875%APR 2.63% 2.875% APR

4.95% 4.22%

The above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000 Information provided by Randy Hotchkiss, National Certified Mortgage Consultant (CMC) Hotchkiss Financial, Inc. P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000 MB #0905432. Rates are subject to change without notice based upon market conditions.

3.38% 2.75%

Nuevo Multipurpose Facilities District’s board of directors. Additionally, builder and developer Pete Herder and the late UA professor/philanthropist Louise Marshall will be honored as “legends” of real estate. The Feb. 12 forecast will be at the Marriott Tucson University Park Hotel, 880 E. Second St., starting at 1:30 p.m. and ending by 5 p.m. It will be followed by a networking reception. Cost is $100 per person, or $80 for CCIM members, or $900 for a table of 10 for registrations made by Jan. 31. On Feb. 1 the price goes up to $115 per person, $95 for CCIM members or $950 for a table of 10. The Tucson Association of Realtors is handling details and reservations. Email sazccim@tucsonrealtors.org or call (520) 382-8789.

Sales by zip code Of 4,449 residential units available for sale in the Tucson region in December, 831 were concentrated in three areas, accounting for 19 percent of the available inventory, according to the Tucson Association of Realtors Multiple Listing Service. Green Valley had the most listings at 320 units, followed by zip code 85739, the area along North Oracle Road to Catalina State Park to the junction of Arizona Highways 77 and 79, with 275 listings. The third highest amount of listings was in the central Catalina Foothills zip code of 85718, where there were 236 homes listed. Over the past 18 months, these three zip code areas have consistently had high inventory compared with other areas in the region. By volume, the most homes, 55, were sold in zip code 85710, which is basically East 22nd Street and Pantano Parkway areas. The second highest volume was in Vail, where there were 44 sales.

• Rich Rodgers Investment Inc. purchased a 5,092 square-foot office building at 184-190 S. Stratford Drive for $150,000 from BOT Real Estate Holdings I. The transaction was handled by Brandon Rodgers, Picor Commercial Real Estate Services. • GAP Ministries Inc. leased 25,000 square feet at 2861 N. Flowing Wells Road from Keenan Investment Company, represented by Gary Emerson, GRE Partners. The tenant was represented by John Hamner, Keller Williams. • Towne Air Freight leased 17,711 square feet at 6855 S. Lisa Frank Ave. from RG-Medina LLC, represented by Rob Glaser and Peter Douglas, Picor Commercial Real Estate Services. The tenant was represented by Brad Struck, Transwestern. • Furniture Depot leased 3,525 square feet at 1880 E. Mitchell St. from Albright Family Trust. Aaron LaPrise, Picor Commercial Real Estate Services, handled the transaction. • Relish Wine Pub leased 3,050 square feet at 4600 E. Camp Lowell Drive from Swan Retail LLC, represented by Brian Harpel, the Harpel Company. • Robert Streyar, doing business as Quality Mattress Outlet, leased 2,900 square feet at 6440 N. Oracle Road, from Plaza del Oro LLC, represented by Shannon Murphy and Paul Schloss, CBRE. • Ventana Crossfit LLC leased 2,800 square feet at 6875 E. Sunrise Drive, Suite 131, from M.E.F. Company. The transaction was handled by Aaron LaPrise, Picor Commercial Real Estate Services. • Super Carniceria El Rodeo LLC leased a 2,633 square-foot building at 3901 E. Benson Highway from Bermer Corporation. Rob Tomlinson, Picor Commercial Real Estate Services, handled the transaction.

Email sales and leases and other real estate news items to ryohem@azbiz.com. Inside Real Estate & Construction appears weekly.

20 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Building on success: Up & Comers, home delivery Fingers crossed we think we have success in the new direct delivery of the weekly print edition of Inside Tucson Business. Now we’re looking for more success with the launch of our search for 2013 Up & Comers. Let me take those two in reverse DAVID HATFIELD order. Up & Comers is Inside Tucson Business’ annual recognition of people who, while still early in the careers, are having an impact, either in their chosen line of work or in the community — and most often, in both. This is an opportunity to recognize those individuals who are destined to do great things. This is the 11th year of these truly inspirational honors. From your nominations, a group of previous honorees will be asked to select nine people to be featured in a special section in the April 12 issue of Inside Tucson Business. We’ll follow that up with a special reception for our honorees. We’re taking nominations online — www.InsideTucsonBusiness.com — click on the Up & Comers icon on the right-hand column of the home page. One of the things we’ve heard is that the nomination form we had been using was way too complicated. If that steered you away in the past, don’t let it this time. We’ve narrowed down the form to just the basics. Please also know that self-nominations are accepted. So please think about who you would like to nominate and then do it. Please do it before 5 p.m. Feb. 18. As for the other measure of success, the first week of direct delivery of Inside Tucson Business came and went with only about a dozen subscribers telling us they didn’t get their papers. Most of those were delivered either Saturday or a few on Sunday. Circulation Manager Laura Horvath tells me 87 percent of our subscribers have opted to go with direct delivery, mostly at their homes. At my house, Inside Tucson Business arrived with Friday morning’s Arizona Daily Star and Wall Street Journal all in one bag with a hand-written note on the bag reading, “All your newspapers.” Along with the delivery change, we’ve added some subscriber services, such as starting and stopping deliver for vacations and changing addresses. Most of it can be done online. Go to www. InsideTucsonBusiness.com, click on subscriber services. We also have a dedicated phone line for subscription issues. It’s (520) 295-4219. We made the delivery change because of uncertainties with the U.S. Postal Service that are likely to delay deliveries. I received a call from George Kalil, president of Kalil Bottling, who wanted me to know the closure of the Tucson mail sorting facility is not a done deal, despite the Postal Service’s intent. He said he is working with local officials to “fight it all the way.” We wish them luck, but the fact is businesses — and that’s what we are at Inside Tucson Business — have to make decisions based on what we believe to be happening. There’s no room for uncertainty. In our case, it looks as if we’ve made lemonade out of lemons or a silk purse out of sow’s ear. How do you feel about it? Drop me an email.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237.

EDITORIAL

Wish we would have thought of it It looks as if the AAA Auto Club and Better Business Bureau have themselves covered. Same with IBM, Sanofi and Accenture, three firms with connections to Southern Arizona. They’re among the applications that have been received from people and organizations that want to do more with their web addresses or uniform resource locators (URLs) than end with .com, .org, .edu or one of several country-specific endings such as .mx for Mexico. For an application fee of $185,000, the Internet Corporation for Assigned Names and Numbers (ICANN), the international group headquartered in Los Angeles that oversees online addresses, has set out to add new suffixes to Web addresses. They’re officially called generic top-level domains (gTLDs). ICANN officials said they thought they would get somewhere between 200 and 500 applications. They’ve received 1,930. Obviously some people with big ideas have snapped up some they think could make them money, such as . art .baby, .inc, .mobile, .pizza and .soccer. Three applications were made for .sucks. Seven applications were filed for .news and four for .radio. The .tv suffix is already in use, supposedly for entities in the Tuvalu Islands of the Pacific Ocean. The most applications for a single gTLD was 13 for . app. Tech savvy Google applied for 101 gTLDs, including .fun, .diy, and .youtube. Some of the applications are obvious. The auto makers you’d expect to filed for .chevy, .ford, .honda and .toyota. Both ABC and CBS have applied for their respective three-letter gTLDs. There’s no application for NBC, though parent company Comcast did file for . comcast. The city governments of Paris and Taipei applied for .paris and .taipei respectively. We couldn’t find any applications for .tucson or . arizona. Some of the applications suggest marketing inten-

tions. It doesn’t look as if Discover cards is going to give up on its cash back bonus program because it applied for .cashbackbonus. But if the folks over at KGUN 9 are interested in making more of their “9 On Your Side” positioning campaign through a gTLD, it looks as if they might want to strike up a conversation with Nationwide Insurance, which has applied for .onyourside. And it looks as if there might be a food fight between Safeway and Wal-Mart, both of which have applied for . grocery. In cases where there are multiple applications, ICANN said the applicants will get an opportunity to work things out amongst themselves but if there’s no solution then it will auction off the gTLD to the highest bidder. Last month ICANN held a lottery to determine the order in which it will process the applications that have been received so far. Among other things, ICANN needs to sort out about 260 objections that have been filed such as the country of Argentina objecting to clothing company filing for .patagonia. The first gTLD should be up and running by June. And once it gets rolling, ICANN anticipates issuing about 20 of them a week. At that pace, it will take about a year and a half to get through the first batch. So by the end of the year it should be common to see URLs ending in .aaa, .bbb, .ibm, .sanofi or .accenture. For those among us who like to hold more tangible assets, this fuss may seem overblown. But consider that a website registry near Seattle named Donuts, spent $55 million applying for more than 300 gTLDs, including .taxi, .camp, and .investment. According to the Christian Science Monitor it wants to rent out the addresses to businesses. For instance, a Tucson cab company might register tucson.taxi. But that’s nothing, the Monitor notes. The website URL investing.com was first registered in 1995 and sold last month for $2.4 million. A business opportunity we wish we would have thought of.

InsideTucsonBusiness.com

JANUARY 25, 2013

OPINION WAKE UP, TUCSON

Re-Branding Tucson: Why you should care about it Tourism is a very important cog in Pima County’s economic machine. Most everyone here knows that — or should. Tourism uses the assets that are already here. It doesn’t require any environmental impact studies. Neighborhood associations don’t complain about it. Still the sector has dealt with some incredible negatives: The state’s SB 1070 anti-illegal immigration law, a call for a boycott by our own U.S. Rep. Raúl Grijalva, the horrible economy and practically a lost decade at the Metroplitan Tucson Convention and Visitors Bureau (MTCVB). Despite these, most of the assets are still here and hanging on. And they’re starving for a comeback. Enter “Visit Tucson,” the new handle for the MTCVB. A customer survey and a visitor analysis have been completed — something I don’t know has ever before been done for the industry. And now comes the re-branding of Tucson. It’s time to distill what is special about the Tucson region as a destination and make sure it connects with people the industry needs to target to come here for a visit. This is not a declaration of love for Tucson, it’s something that has to be

salable. “Real. Natural. Arizona,” the campaign that’s been used for the last 10 years, hasn’t connected with anybody outside those who dreamt it up — and they already live here. CHRIS DeSIMONE As a side-note, I know there is some indigestion that a local agency wasn’t selected to head up the Visit Tucson branding effort. Normally, I would be right there, too. But not this time. Tucson needs an expert in national branding with a fresh perspective on what will resonate with people outside the region. MMGY Global, headquartered in Kansas City, Mo., with offices in New York, Denver and Orlando, is a major league hitter in the travel industry and we’re lucky to have its vice chairman Peter Yesawich in our corner. He is regularly called upon for his respected and insightful knowledge on the habits and preferences of travelers. The rebranding of Tucson is going to be a process that will take several months. There will be ample time and opportunity

for all who are interested to opine and contribute. There will be forums open to the public and many one-on-one opportunities with industry leaders, economic development groups and elected officials. The more contributors, the better. First, MMGY will get the broad expanse of the Tucson experience that will be distilled down to the brand. Secondly, the more people who contribute, the more people who will be predisposed to buying in to the effort and actually implementing and preaching the brand gospel of Tucson. This brings me to a critical aspect of the brand. Whatever comes out of the process, we must embrace it. From the hotel sales manager to the government bureaucrat to the front windows of restaurants, the brand must be shared with as many as possible. The moment the brand is forged, the real battle starts. It will be all hands on deck. Chris Wilson, a professor at the University of New Mexico, wrote a fascinating book called “The Myth of Santa Fe.” It details how a community transformed itself from a declining provincial state capital of 5,000 people in 1912 into an internationally recognized tourist destination. In recent

decades Santa Fe has continued with a comprehensive effort through special events, cultural promotion, architecture, cuisine, branding and marketing to create a Soutwestern destination with tremendous international appeal. I would argue Santa Fe has better international buzz than even our beloved Tucson. Santa Fe’s effort is something we should look at as we implement Tucson’s new brand. Tucson is an amazing destination. Our new brand will help our region’s efforts for economic development, improved airline service and others that will benefit us all. The brand will be a distilled brew of the things we know resonate: great weather, Sonoran cuisine and influence, Native American culture, outdoor activities, the Unversity of Arizona, the Old West, aviation and the international community that lives here. There are more, I am sure. Make sure you get out and tell Visit Tucson what they are.

Contact Chris DeSimone at provenpartner@comcast.net. DeSimone co-hosts “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM.

GUEST OPINION

Why professional golf is good for our kids Sure, we’re all proud to have Rory McIlroy and 63 other phenomenal golfers come to Southern Arizona each February for the World Golf Championships-Accenture Match Play Championship. It’s a bona fide privilege for our community to host his event; our local economy benefits, too. But what’s really special about the Accenture Match Play is the money raised and distributed through the Tucson Conquistadores so our underserved youngsters have opportunities to participate in sports. Since 1962, our organization has embraced a simple yet important mission: to support youth athletics in Southern Arizona. Through several different projects, and now primarily through our partnership with the PGA Tour, the Conquistadores have raised and distributed $26 million over the past five decades. On behalf of the 200 members of the Tucson Conquistadores, thank you, Southern Arizona, for making a difference in our children’s lives. Your support has enabled us to send kids to camps, provide special needs Little Leaguers with their Field of Dreams, and help shape the lives of

young people from all walks of life by reinforcing values like integrity, respect and perseverance through the game of golf at The First Tee of Tucson. The funds BRANDT HAZEN raised during the Accenture Match Play Championship are designated for Tucson Conquistadores’ youth charities. Boys and Girls Clubs in Tucson, Sierra Vista and Nogales, Pima County Special Olympics, the Curtis Park Indoor Sports Center, Tucson and Pima County Junior Golf Programs are beneficiaries; teams and athletes in track and field, gymnastics, soccer, even junior rodeo are also helped when needs arise. For the seventh consecutive year, the Tucson Conquistadores has partnered with Accenture and the PGA Tour to support the Accenture Match Play Championship. Local fans, visitors and hundreds of millions of

• It gets you up close and personal with viewers in 224 countries will watch the top the finest golfers in the world; 64 golfers compete at the Golf Club at Dove • It ensures the Accenture Match Play Mountain on Feb. 18 – 24. continues in Keeping c Tucson; this coveted T BIZ FACTS • And event in World Golf Championships - Accenture perhaps most Tucson p Match Play Championship importantly, it must be a i raises money to priority. The r Feb. 18-24 help so many event h Ritz-Carlton Golf Club, Dove Mountain children rewards us c throughout our by instilling t 6501 W. Boulder Bridge Pass, Marana community. tourism, c Tickets: Individual day tickets well as week-long I encourage capital and tickets, along with special packages are available. you investment y to enjoy this www.tucsonconquistadores.com year’s tournathroughout y (520) 571-0400 ment Southern m by purchasing Arizona p tickets. With prices starting at $25, it’s a great — the annual economic impact of this value, too. Visit our website or call our office. tournament is estimated to be $75 million The young athletes of Southern Arizona to $100 million. The success of this event, as with any PGA Tour event, is measured by thank you. the community’s involvement. To ensure Brandt Hazen, president of Hazen this tournament’s success, we need your Enterprises, is also the current president of participation and attendance. the Tucson Conquistadores, which is Your support of this tournament does three things: celebrating its 50th anniversary.

22 JANUARY 25, 2013

INSIDE TUCSON BUSINESS

OPINION SPEAKING OUT

An open letter to City Councilman Steve Kozachik Dear Steve: You are a courageous person. You must have done a lot of soul searching before leaving the Republican party to become a Democrat. When you were elected to the City Council, many Tucsonans assumed you were very conservative. Some scratched their heads and wondered how you could win election in Tucson! After all, Tucson is supposed to be a “Democratic stronghold,” and aren’t all Republicans “far right?” The latter assumption was hardly fair. But to the surprise of most, you were a moderate, and moderates are a rare breed in the Grand Old Party. I look back on my own similar political party journey. Forty years ago I left the Republican party and became a Democrat. The Oregon Democratic Party recognized I was a moderate and asked me to serve on a local Democratic central committee because they wanted “balance” in that group, which was quite far left. Can you imagine this happening in today’s political world? When I ran for the Tucson City Council, I was proud to run as a Democrat. Democrats are supposed to care about people’s

lives, and I cared about people — a good match! After my election, I began to realize I was a council member for ALL people, not just the Democrats. Besides, my ward, CAROL WEST Ward 2, is Republican! I began to make decisions based on that premise, to the dismay of the Democratic Party. It wasn’t long until I was considered a pariah by many Democrats, and I found it increasingly uncomfortable to attend Democratic functions where I was often not even acknowledged. I suspect this situation is familiar to you too, but from the Republican side of things. After some consultation with close friends and advisors, I realized I could not continue as a Democrat. I re-registered as an independent voter. I have always been a very independent person. It seemed natural to lean in that direction at the time, and it still does. I had no plans to further my political career, so that part did not

matter. Yes, Democratic Party leaders say they accept “all shades of blue” and in many ways, that is true. However, they also will want you to follow their party platform. At the Tucson city council level of politics, that is impractical. Whether you are dealing with the budget, garbage, water, or police officers, public policy should not be developed based on party politics. It has to be done based on what is prudent, cost effective, and in the best interests of the residents of Tucson. Whatever is done must constructively shape the future of the city as well. I believe that to date, you have kept that in mind. I hope your “new party” will respect you for that, as so many of your constituents already do. What will happen when you decide to continue to do things as an advocate for the city rather than because of what the Democratic Party might want you to do? You may be summoned to a meeting with party officials. I suspect you will be more forthright and less defensive in those confrontations with the party echelon than I was.

InsideTucsonBusiness.com

However, you must be true to yourself and your Ward 6 constituents, and that has to be uppermost in your mind. I believe that it will be. Obviously this has been part of your past thinking, which probably caused you to leave the Republican Party. Your strategic move to the middle is wise because it reflects where you are politically at this place in time. But don’t let the public judge you and put you in a narrow box. Our society today seems content to do just that rather than trying to look at issues and people in a more balanced way. I wish you the best as you continue to work with your colleagues to move Tucson forward. That has not been easy in these stressful economic times. But I have complete confidence that you and the other council members can work together so the city will again flourish as it has in the past. - Carol West

Contact Carol West at cwwtucson@ comcast.net. West served on the Tucson City Council from 1999-2007 and was a council aide from 1987-1995.

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Do you agree with Gov. Jan Brewer’s decision for Arizona to accept $7.9 billion more in federal al money to fund AHCCCS? Yes 78.1% No 21.9%

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LEGAL REPORTER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

ACCOUNT EXECUTIVE ALAN SCHULTZ aschultz@azbiz.com

DIGITAL SALES MANAGER JIM KEYES jkeyes@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAVID MENDEZ dmendez@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

ACCOUNT EXECUTIVE DAVID WHITE dwhite@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

EDITORIAL INTERN LAUREN SHORES

InsideTucsonBusiness.com

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