Inside Tucson Business 02/01/13

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REMEMBERING TUCSON Rillito Downs was country’s first quarter-horse track PAGE 16

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • FEBRUARY 1, 2013 • VOL. 22, NO. 36 • $1

VII Grand Former UA basketball star part of team behind new downtown shoe store Page 4

OPEN FOR BUSINESS e

Gem and mineral show back in the spotlight PAGE 3

Can you hear me now? Group ranks cell phone providers in Tucson Page 6

Economic factors forging ‘new normal’ Metropolitan Tucson Convention & Visitors Bureau

Fed policies holding back business growth Page 19

Arizona university presidents make appeal for more money By Gerald Bourguet Cronkite News Service Arizona’s three public universities say they have met the lawmakers’ mandate to do more with less but now need money to address critical needs. Ann Weaver Hart, new president of the University of Arizona, cited her university’s successful medical schools, including the UA Cancer Center’s recent partnership with St. Joseph’s Hospital in Phoenix. But years of state funding has meant putting off $109 million in maintenance at Northern Arizona University in Flagstaff, according to President John Haeger.

“Eventually, my friend the fire marshal will insist that particular projects get completed,” Haeger said in an appearance before the state House Higher Education and Workforce Development Committee on Jan. 23. Arizona State University President Michael Crow recommended tying university funding to performance by developing a system linked with goals set by state leaders. “We want to be held accountable for what we do,” Crow said. “The Legislature needs to design a methodological approach through which, when the state’s economic performance is enhanced, we at the

universities are contributing to that enhancement and should therefore, among the universities, be able to compete for resources.” Arizona Board of Regents Chairman Rick Myers outlined goals and needs for the universities, including a goal to increase the number of college graduates in Arizona from 30,000 to 60,000 by 2020. Another goal is increasing research funding from $1 billion per year to $2 billion by 2020. “Three years ago Governor (Jan) Brewer addressed the Board of Regents with a challenge to develop a long-term, strategic education plan for Arizona,” Myers said. “She knew that we were entering tough eco-

nomic times but she said, ‘You have to continue to work on greatness even though your resources are going to be scarce.’” The committee’s chairman, Rep. Jeff Dial, R-Chandler, pledged to allocate the necessary funding for Arizona’s universities, but added there’s a balance in providing for higher education. “I think the universities are doing a good job identifying what we need to do, and we as a state are looking at our scarce resources and how we can get them those resources so that we’re graduating 60,000 graduates,” Dial said. “It’s a humongous number, but it’s what we need to do to move the state forward.”


2 FEBRUARY 1, 2013

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What does the future of Tucson look like?

STATE CITY of the

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Tuesday, February 19 JW Marriott Tucson Starr Pass Resort & Spa Registration: 11:30 am Luncheon: 12:00 pm RSVP By: Tuesday, February 12 www.tucsonchamber.org

Ticket prices: Members $55 Non-members $75 Reserve your seat now for the State of the City Address when Mayor Rothschild updates progress on his business and community initiatives as well as his vision for Tucson.


InsideTucsonBusiness.com

FEBRUARY 1, 2013

3

NEWS

More than 50,000 expected for gem, mineral and fossil showcase paying adult. Two-day adult admission tickets are $17.

Inside Tucson Business

By the numbers 57 — Februarys the Tucson Gem, Mineral and Fossil Showcase has existed. 41 — Venues across the region that will host shows, stretching from the JW Marriott Starr Pass Resort, 3800 W. Starr Pass Blvd., on the west side through downtown Tucson to the Doubletree Hotel Tucson-Reid Park, 445 S. Alvernon Way, and Viscount Suite Hotel, 4855 E. Broadway on the east side and from the Westward Look Wyndham Grand Resort, 245 E. Ina Road on the north to the Holiday Inn Hotel, 4550 S. Palo Verde Road, and Tucson Expo Center, 3750 E. Irvington Road on the south. 43 — Shows that have been scheduled. 4,500 — Estimated exhibitors, based on a study of the 2007 show done for the Metropolitan Tucson Convention and Visitors Bureau. $100 million — Economic impact to the Tucson region, according to the 2007 study. 50% — Attendees who come from outside

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

If you go J.D. Fitzgerald

Starting this weekend — and over the next 16 days — more than 50,000 exhibitors, collectors, buyers and sellers will start their annual rituals involving gems, minerals, fossils and beads called the Tucson Gem, Mineral and Fossil Showcase. Tucsonans, whether they attend any of the exhibits or not, know the event is happening. The streets are more crowded, parking can become an issue, some restaurants are impossible to get into and heaven forbid you have out-of-town guests arriving who need overnight lodging. Hotel and motel rooms are at a premium. With the help of the Metropolitan Tucson Convention and Visitors Bureau, here are some things you might want to know about the annual event and this year in particular, the theme of which is “Fluorite, Colors of the Rainbow.”

Krista Sires looks through necklaces at the 2012 Tucson Gem, Mineral and Fossil Showcase.

the Tucson region, according to the study, 7.3 — Days the average buyer stays in Tucson. About half of the attendees are buyers and their average party consists of 2.6 people. Exhibitors, who account for about 31 percent of attendees, stay an average of 16.4 days and bring 3.5 people with them. Show owners stay for an average of 17.6 days and the average size of their group is nine people. $1,825 — average amount spent in Tucson by an out-of-town buyer. 60% — of out-of-town buyers arrive by vehicle, 13 percent arrive by air.

History A group of mineral collectors and rock hounds from the Tucson Gem & Mineral Society held a free exhibition open to the public at a Tucson elementary school that was such a hit, they decided to try to do it annually. In 1956, the show was in a Quonset hut at the Pima County Fair and Rodeo Grounds on South Sixth Avenue where it stayed until 1972. The Tucson Gem & Mineral Society moved its show to the Tucson Convention Center Arena where it remains a centerpiece of the larger showcase that this year will feature 43 different exhibitors. The Tucson Gem & Mineral Society’s event at the TCC will be held Feb. 14-17. Admission to the show is $10 per adult, free for children 14 and younger with a

A majority of the shows are free and open to the public, though some are limited to wholesalers only, requiring special badging and a tax identification number. • Hours: Shows have varying hours but most open between 8 a.m. and 10 a.m. and close between 6 p.m. and 8 p.m. • Parking: It’s limited at most shows. A parking lot on the west side of Interstate 10 at Congress Street is open from 8 a.m. to 8 p.m. Parking fees are typically $5. Additionally, downtown Tucson parking lots and garages will operate normally. • Shuttles: There are two shuttle routes; one circulating in the downtown I-10 area going north on Oracle Road to Ventura and south to 22nd Street and the other, called the Turquoise Route, operates from the parking lot at I-10 and Congress and the Tucson Convention Center to the Windmill Inn, 4250 N. Campbell Ave. in St. Philip’s Plaza; Doubletree Hotel Tucson at Reid Park, 445 S. Alvernon Way, and Holiday Inn Hotel, 4550 S. Palo Verde Road. A free shuttle that had been operated by the City of Tucson in past years has been discontinued this year. • Guidebook: The official guide is available at the Tucson Visitor Center, 100 S. Church Ave. in La Placita Village; the Tucson Convention Center, 260 S. Church Ave.; Tucson International Airport and at concierge desks at many hotels. A PDF version of the guide can be downloaded from tucsongemshow. org, which also has a continuously updated digital version. • A gem show hotline, (520) 622-GEMS (4367) will operate from 8 a.m. to 5 p.m. weekdays Feb. 4-15.

Future shows Feb. 1-16, 2014 and Jan. 31-Feb. 15, 2015.

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ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

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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.

Accountable care expands, adds United Healthcare The idea of patients taking charge of their own healthcare is growing, from a beta test that started two years ago at Tucson Medical Center to approval a year ago of Arizona Connected Care among the first federally approved accountable care organizations for Medicare patients to this week with an announcement that more than 180,000 Southern Arizonans enrolled in UnitedHealthcare’s employer-sponsored health benefit plans will now be able to participate. The accountable care organization model aims to increase patient satisfaction, improve the health of the population and reduce the costs of health care. There’s not much different that a patient must do to participate in the accountable care organization. Participating primary care physicians receive monthly updates on the patients, enabling them to monitor all of the care each patient is receiving and access the patient’s care in one record, regardless of where it takes place. The model is especially helpful for patients with chronic conditions, such as diabetes and heart disease. Tucson Medical Center, 5301 E. Grant Road, continues as the participating hospital in Arizona Connected Care, which also includes a growing network of about 200 primary care providers and 70 specialists in Southern Arizona.

EuroFresh files bankruptcy, fields NatureSweet offer EuroFresh Frams, a greenhouse grower of tomatoes and cucumbers with a large facility near Willcox, has announced the pending sale of the company. EuroFresh filed for Chapter 11 bankruptcy on Monday (Jan. 28) in Tucson. It also announced a pending sale of its assets to NatureSweet, a San Antonio, Texas, company that also produces greenhhouse-grown tomatoes. EuroFresh was started in Willcox in 1992 by Johan van den Berg and Wil van Heyningen, who had come from the Netherlands. Eurofresh now also has a facility near Snowflake and between the two has more than 300 acres of growing area under glass producing more than 150 million pounds of tomatoes annually. More than 1,200 people are employed by Eurofresh.

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

6 7-10 11 13 14 14 15

Finance Real Estate & Construction Biz Buzz Editorial Classifieds

18 19 20 20 23


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INSIDE TUCSON BUSINESS

NEWS Artificial heart manufacturer, SynCardia Systems Inc., 1992 E. Silverlake Road, said this week it set records in 2012 for both implants and revenues. The company said 125 of its Total Artificial Hearts were implanted into patients around the world. Its revenues last year totaled $25 million. The company’s Total Artificial Heart is the only one of its kind approved by the U.S. Food and Drug Administration as well as the comparable agencies of Canada and the European Union.

4 firms win $23,000 in early-stage grants Four Tucson firms are among 24 earlystage Arizona technology companies that have won grants from the Arizona Commerce Authority (ACA) to help with training and technical assistance for growing their business, creating jobs and commercializing their innovations. More than 70 small businesses applied for the AZ Fast Grant program. Statewide, grant recipients will receive a total of $169,230. Recipients in the Tucson region are: • $5,000 to Colloidal Gen Inc., 9040 S. Rita Road in the University of Arizona Science and Technology Park, which is developing products for applications in genetic research, molecular diagnostics and bio-sample processing. • $7,500 to DemeteRx Pharmaceuticals, 9040 S. Rita Road in the UA Science and Technology Park, is looking to use natural products for cancer drugs that will increase the effectiveness of conventional chemotherapy. • $7,500 to Latitude Engineering, 744 S. Euclid Ave., which is developing products to increase the effectiveness of unmanned aerial systems. • $3,000 to TotalPersona LLC (Worldbyme. com), 1518 W. Fort Lowell Road, which provides secure software allowing for the exchange for information between schools and student families.

Securaplane’s charger ‘not likely’ cause of 787 fires Investigators trying to determine the cause of fires in lithium-ion batteries on Boeing 787 Dreamliners are concentrating their attention on the batteries themselves while the world’s fleet of 50 of the advanced-technology airliners is grounded. Investigators said a charger unit manufactured by the Oro Valley firm Securaplane Technologies isn’t likely the primary culprit in causing the problems. Investigators with the National Transportation Safety Board (NTSB) visited Securaplane, 10900 N. Stallard Place, Oro Valley, on Jan. 22 to test and examine the charger it manufactures for the 787.

Seven grand... make that VII Grand... looks to put Tucson on streetwear map By David Mendez Inside Tucson Business There are times when all Mario Escalante can do is sit in his shop, look out the window, and daydream about the future for the place — and occasionally watch as people drive the wrong direction on Broadway. His space at 178 E. Broadway, in the Julian-Drew building, is set to open Feb. 15 as VII Grand Premium Sneakers & Streetwear, a shop that looks to fill an upscale niche that Tucson has neglected. The store is spearheaded by a partnership between Escalante and Derrick Williams, born from a friendship that came during Williams’ time playing for the University of Arizona basketball team. For the uninitiated, streetwear shops take their inspiration from hip-hop and basketball culture, and tend to fill their spaces with high-end gear from labels such as Hall of Fame, Undefeated, Stussy and more, while also selling limited edition colors and designs from major sneaker manufacturers. Escalante, 30, is a graduate of Tucson High School and an Air Force vet. Joining the military out of high school, he returned after six years and obtained an associate’s degree in Graphic Design. But after months of putting out his résumé, without getting any responses, he started “getting nervous,” then figured he’d give his dream a shot. “(Owning a boutique)’s always something I’ve wanted to do since I was a teenager,” Escalante said. “You ask anyone who knows me, and they’ll tell you that I’ve always been into fashion and sneakers — they know how I am about shoes and stuff.” So, during the summer of 2012, he sent a text out to Williams, who now plays for the Minnesota Timberwolves and is a fellow sneaker aficionado who grew up surrounded by streetwear and sneaker shops in California, to test the waters for a partnership. “I asked him, ‘Out of all the people you know, who would you say would be successful at opening a streetwear and sneaker store?’ and he got back to me and said ‘I’d say Paul George (who plays for the NBA’s Indiana Pacers), or you,’ and I was like ‘wow...to be mentioned out of all the people he knows, I figured if he said so, I’d be successful at it.” So the two got to work, communicating back and forth via phone and text, scouting out locations and developing their business plan.

BIZ FACTS

VII Grant Premium Sneakers & Streetwear 178 E. Broadway

www.facebook.com/VIIGRAND Opens Feb. 17

David Mendez

Artificial heart maker SynCardia has record year

Mario Escalante, in partnership with Daily Doses, plans to sell these leather-and-snakeskin strapback caps.

After a deal fell through closer to the UA campus, Escalante was pointed towards the Julian-Drew location by realtor Buzz Isaacson. “Downtown’s where I really wanted to be, I just didn’t think that anything was available,” Escalante said. “When (Isaacson) told me about this, I told him automatically ‘we’ll take it.’ I didn’t have to look at it at first — I already knew the building and the location — and things worked out.” Upon landing the space, Escalante and crew began moving the process along by converting an office into a retail space — tearing down the plaster that hid the original brick walls, buffing and refinishing the original wood floors, and erecting walls to create space for a stock room and a changing room. After opening up a line of communication with Curtis Brown, co-founder of Dunkxchange, an event that offers shoe collectors to trade with fellow sneakerheads, and a successful trip to Agenda, an industry tradeshow specializing in action sports and streetwear lines, Escalante’s attention shifted to the store’s finishing touches — finalizing supplier contracts, placing fixtures, and the installation of a

mural of the store’s back wall, to be done by Tucson-born street artist Rocky Martinez. As it stands now, it’s all coming together. Escalante is already wearing a sample of a VII Grand collaboration with premium hat maker Daily Doses: a white baseball cap featuring the old mountain-and-saguaro logo of Arizona Athletics, accompanied by a snakeskin-covered brim and snake leather strap on the back that they plan on selling for $105, a pricepoint that lives up to their premium streetwear moniker. “Our goal is to be up there with big names, like High Point in Scottsdale,” Escalante said. “We’re going to make sure that we provide the best streetwear, sneakers and accessories that we can. Tucson really needed something like this, and I’m just excited to make it happen. I’ll do my best to bring the best.” “A lot of people complain about what Tucson doesn’t have — instead of complaining, why not just...make the effort to change something. That’s what I did.” Contact reporter David Mendez, Web producer for Inside Tucson Business, at dmendez@azbiz.com or (520) 295-4238.


InsideTucsonBusiness.com

FEBRUARY 1, 2013

5

NEWS This Week’s

United Way closing in on $10 million campaign goal

Good News This is Tucson, Feb. 1 Weather forecast: High of 76, high of 75 Saturday, high of 75 Sunday. Things to do: MLS Soccer Spring Training, visit a gem show. Later in the month go to the Desert Diamond Cup soccer tournament, attend La Fiesta de los Vaqueros Tucson Rodeo go up to the World Golf Championships-Accenture Match Play Championship.

The Tucson

INSIDER BIZ FACTS

United Way of Tucson and Southern Arizona 330 N. Commerce Park Loop, Suite 200 (520) 903-9000

www.unitedwaytucson.org

United Way’s 2013 campaign team, from left, Doug Myers, Hilton & Myers Advertising; Donna Morton, TMC Foundation; Mike Hammond, Picor Commercial Real Estate Services; Debbie Chandler, formerly with the City of Tucson; Craig Martin, Starwood Hotels & Resorts Worldwide Inc.; Ed Palma, Jim Click Automotive Team; Jaime Gutierrez, University of Arizona; Howard Stewart, AGM Container Controls Inc.; Dan Anderson, Dillard’s; Eric Schindler, Child & Family Resources Inc.; Paul Bonavia, Tucson Electric Power; Teddi the United Way Bear; Jim Holmberg, community volunteer, and Tony Penn, United Way.

By Christy Krueger Inside Tucson Business While the economy is still a long way from recovering, residents and businesses are demonstrating their fiscal generosity by increased giving to organizations that make a difference in the Tucson region. United Way of Tucson and Southern Arizona is nearing the finish line of its 2012-2013 annual campaign that began in October, but it needs a final donation boost to reach its $10 million goal by March 31. Tony Penn, president and chief executive officer of the regional chapter, announced a new strategic plan that includes increasing revenues by 5 percent each year for the next five years. Last year’s goal of $9.1 million was surpassed with a final campaign tally of $9.5 million. Penn feels it’s imperative this year’s goal be met because of the need in the community. “Ten million dollars is a big chunk for us. It’s aggressive because needs have gone up so much. We’re on the list as the sixth-poorest community in the nation (U.S. Census Bureau). When there are negative issues that are pressing, we as an organization have to attack those issues,” Penn said. Through grants, United Way of Tucson helps non-profit agencies that provide vital services, particularly in the areas of education, health and creating financial stability in households. “Last year one in 10 people were touched by United Way of Tucson and Southern Arizona,” Penn noted. “We have 87 different partnerships and we are the largest grant-funding

organization in Southern Arizona.” Approximately 50 percent of overall support comes from the annual campaign. Other funding sources include private foundations, federal and state agencies and individual donors. “We get major gifts from big donors who participate. The Giving Society is people who give $10,000 or more. We saw a significant increase last year and this year. That trend is still positive,” said Penn. The workplace campaign is a very important part of United Way’s fundraising, he added. “We have about 200 businesses, but we want to increase that. There are organizations from Raytheon to small mom-and-pop shops. Through payroll deductions, employers have the opportunity to make a difference. It’s helpful from a workforce development standpoint because the people we support are your families and friends.” Sometimes an employer will match employee donations, and Penn strives for 100 percent participation within each company. “People give $5 or $10 from their paycheck and it adds up — it’s impactful.” A number of companies have increased their giving over last year. “Geico and TEP are up significantly,” said Penn. “So is Pima County and also City of Tucson.” Leading this year’s campaign is Paul Bonavia, chairman and chief executive officer of UNS Energy Corp., parent company of Tucson Electric Power (TEP). “Paul is chair of the campaign cabinet. Last year it was Judy Rich of TMC, and next year’s campaign chair will be Lisa Lovallo of Cox. During the year they are campaign chair they are automatically on the board of directors—it’s

United Way of Tucson and Southern Arizona

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

part of our bylaws,” Penn explained. Bonavia served on the board for several years prior to taking the campaign chair position. “The chairman leads the campaign charge. They come together to meet monthly during the season. They provide access to businesses and leverage their leadership. Paul is doing a fantastic job in his leadership. It’s adding up to see great results. We’re confident we’ll achieve our goal because of his great leadership.” Still, Penn said, the cabinet is pushing for continued donations during these final eight weeks. While the major campaign efforts halt March 31, donations will be accepted for the 2012-2013 season until the fiscal year ends June 30. As soon as one campaign push is over, the next year’s planning begins. Last fall United Way of Tucson and Southern Arizona received special attention from its parent organization. “About 90 days ago we were recognized as a top-2 percent community by United Way Worldwide,” said Penn. “That’s new for us. We’ve never been that highly regarded before. The metrics they look at include actual community impact — how we’re transforming lives.” Much credit goes to Penn, who has made strides in the two years and eight months he’s been on the job, taking over leadership of an organization that had fallen short making payments to charities. “I’m a blessed person,” he declared. “I found a great community that’s warm and welcoming. And we’re on our way. It’s about our friends, family and neighbors. They don’t need hand-outs, they need hand-ups.”

Unemployment claims workers now unemployed Arizona’s slowly improving economy is having a negative effect on some state employees. A Phoenix call center operated by the Department of Economic Security’s Division and Rehabilitation Services has shut down and 29 employees were laid off because fewer people are filing unemployment claims, reports Phoenix TV station KPHO. The fewer claims, along with more people filing claims online, has translated to a 20 percent cut in the amount of federal funding, which paid the salaries of the call center employees. As of today (Feb. 1) all unemployment claims must be filed online — 80 percent already are. With the closing of the Phoenix call center, the Division and Rehabilitation Services’ Tucson call center is the last one still operating in the state.

Speedy El Paso You’ve got to hand it to the folks over in El Paso how they’ve managed to snare the TripleA Padres away from Tucson for next year. What may be even more impressive is how they’re going to tear down their 34-year-old, 10-story City Hall to make way for a $50 million baseball stadium. So where will all the city hall employees go? It turns out, just like Tucson, El Paso used to have two daily newspapers, the Times and the Herald-Post. The latter went out of business in 1997, six years after both newspapers moved into an 80,000 square-foot facility. With half the building empty, Times’ owner Gannett sold it to the city on Dec. 15 for $9.4 million. Work is already underway remodeling the vacant second floor for the city while the Times newspaper gets space ready in a building in a part of the downtown area being revitalized. That move is planned for Feb. 15. All of the moves are supposed to be finished by March 31, ready for the wrecking ball to hit old city hall and for work to start on the ballpark before summer.


6 FEBRUARY 1, 2013

PUBLIC NOTICES Public notices of business bankruptcies, foreclosures and liens filed in Tucson or Pima County and selected filings in Phoenix. Addresses are Tucson unless otherwise noted.

BANKRUPTCIES Chapter 11 Business reorganization 250 AZ LLC, 6818 N. Oracle Road, Suite 420 (Principal assets: 250 E. Fifth St., Cincinnati, Ohio). Principal: George Hoxie, manager. Assets: $25,072,148.61. Liabilities: $70,751,781.16. Largest creditor(s): CW Capital Asset Mgmt, Servicer for Cobalt CMBS Commercial Mortgage Trust 2006C1, West Bethesda, Md., $64,405,238.00, and Armed Forces Bank, Kansas City, Mo., $4,696,924.09. Case No. 4:13bk-00851 filed Jan. 22. Law firm: Breen Olson & Trenton Mark Steven Tronziger and Jill Y. Tronziger, 4421 E. Bryn Mawr Road. Principal: Mark Steven Tronziger and Jill Y. Tronziger, joint debtors. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $100,000 to $500,000. Largest creditor(s): Schedule not filed. Case No. 4:13-bk00899 filed Jan. 22. Law firm: C.R. Hyde John G. Vogel and Rita A. Vogel, 8656 N. Bobby Jones Drive. Principal: John G. Vogel and Rita A. Vogel, 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 4:13bk-00960 filed Jan. 23. Law firm: Eric Slocum Sparks Basharat Mahmood, 11931 N. Labyrinth Drive, Oro Valley. Principal: Basharat Mahmood, debtor. Estimated assets: More than $500,000 to $1 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Nationstar Mortgage Ll, Lewisville, Texas, $504,985.00, and Capital Source Bank, Bank of America Lockbox Services, Atlanta, $355,871.32. Case 4:13-bk00990 filed Jan. 23. Law firm: Albert H. Hartwell Jr. Casa International Inc., 4811 E. Sunrise Drive. Principal: Samuel Rodriguez Ibarra, debtor. 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 4:13 bk 01043 filed Jan. 24. Law firm: Pro se. Note: Case dismissed Jan. 28 with prejudice for lack of legal representation. Phillip C. Klinger, 3920 E. Coronado Sunset Drive, Catalina. Principal: Phillip C. Klinger, debtor. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $100,000 to $500,000. Largest creditor(s): Schedule not filed. Case 4:13-bk-01137 filed Jan. 28. Law firm: Michael W. Baldwin

FORECLOSURE NOTICES Ina Business Center LLC and Magee Como Development Association LLC 3390 W. Ina Road and 7787 N. La Cholla Blvd. 85741 Tax parcel: 225-41-0020, 225-41-0430, 225-44-1290, 225-44-1300, 225-44-131B, 225-44-1500 through 225-44-1530, 225-44-154B, 225-44-155B, 225-44156B, 225-44-157B, 225-44-158B, 225-44-159B, 225-44-160B, 225-44-161B, 225-44-1620 through 225-44-1640, 336-44-165E, 225-44-166E, 225-44167B, 225-44-548A, 225-44-5490 and 225-44-550A Original Principal: $4,200,000.002 Beneficiary: Armed Forces Bank, Kansas City, Mo. Auction time and date: 11 a.m. April 18, 2013 Trustee: Jeffrey A. Ekbom, Stinson Morrison Hecker, 1850 N. Central Ave., Suite 2100, Phoenix

LIENS Federal tax liens Apple Farm LLC and Phillip J. Colombo, 4460 W. Calle Don Clemente. Amount owed: $7,513.34. Southwest Hose Inc., 1309 E. Benson Highway. Amount owed: $22,750.83. Southern Arizona Rain Gutters Inc., 8987 E. Tanque Verde Road 309-29. Amount owed: $18,882.65. Southwest Masonry and Scott A. Moore, 4101 W. Barque Drive. Amount owed: $3,146.76. Richard L. Ornelas DC PC, 1112 S. Fifth Ave. Amount owed: $4,403.95. Old Pueblo Dental Ceramics Inc., 7044 E. Redbud Drive. Amount owed: $100,220.89. Western Mapping Company, 3233 N. Campbell Ave. Amount owed: $13,404.83.

INSIDE TUCSON BUSINESS

Analysis ranks Tucson mobile phone service providers By Patrick McNamara Inside Tucson Business A new analysis of mobile phone carrier performance offers a mixed review in the Tucson region, in comparison with other areas. Though improved from previous analyses last year, Tucson was ranked No. 52 of 77 metropolitan areas for overall average download speed in the study by RootScore, based in Bellevue, Wash. Tucson’s average was 7.6 megabits per second (Mbps.) compared to a national average of 9.2 Mbps. “The reason for that is LTE (long-term evolution) is really springing up in a big way across the country,” said Julie Dey, vice president of marketing at RootMetrics. LTE, also referred to as 4G for fourth generation, provides faster download and upload than 3G. At the time the RootMetrics analysis of the Tucson region was conducted, only Verizon had an LTE network in place but now AT&T also has its network in place. RootMetrics rated mobile phone providers in three areas: call, text and data performance, and then gave an overall rating. Here is how the carriers scored: • Call performance: All carriers scored extremely well, above 90 points; Verizon 99, AT&T 98, Sprint 96, Cricket 94 and TMobile 92. Verizon and AT&T had call failure rates of 0.5 percent or less. Sprint was at 1 percent and Cricket and T-Mobile approached 2 percent.

• Text performance: All carriers scored above 90 points; AT&T 16 and T-Mobile were tied at 95, Cricket and Verizon were tied at 94 and Sprint had 93. Text deliveries were made within 10 seconds 91.1 percent of the time on the AT&T network, 88.7 percent of the time on Cricket, 86.1 percent of the time on T-Mobile, 79.9 percent of the time on Verizon and 79.7 percent of the time on Sprint. • Data performance: Because of its LTE network, Verizon easily outscored others with 103 points. T-Mobile got 42, AT&T 29 and Cricket and Spring both got 6. • Combined score: As a result of the data performance, Verizon scored the highest overall, 99 points; T-Mobile was second with 70, AT&T got 67, Spring got 55 and Cricket scored 54. Carriers are generally supportive of the Rootmetrics analyses across the country. A

RootMetrics | Alex Wainwright

Sprint representative, for instance, wrote in a statement that the company was appreciative of studies such as RootMetrics’ but said the results are just one way to measure customer satisfaction. Last year, Verizon scored the highest in Tucson, with an overall score of 92.1. AT&T had 73.5, Sprint at 49.9, Cricket at 46.0 and T-Mobile at 43.6.

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

Marana makes last effort to stay in wastewater business, election set for March By Patrick McNamara Inside Tucson Business With nearly all options exhausted, Town of Marana officials have agreed to negotiate with Pima County to end a long dispute over a wastewater treatment facility. Town officials have agreed in principle to an option to buy the facility from Pima County for $18.2 million, which would cover the remaining debt. Following a multi-year dispute and lawsuit over the small treatment facility located near the Pinal County line north of the town, state lawmakers passed a law that permitted Marana to seize ownership of the wastewater plant from the county if certain conditions were met, including paying off the remaining debt associated with the facility’s construction. Since January 2012, Marana has owned and operated the facility, which serves about 2,100 customers on the north side of town. Ownership of the facility was seen as a major victory for the Marana, which had sought to bolster its ability to grow through

securing an alternative water supply. According to Arizona law, municipalities must replenish groundwater at a rate equal to that which they pump. This can be accomplished in numerous ways, including purchasing water credits or using surface water from the Central Arizona Project. Unlike other Arizona municipalities, Marana does not have a large CAP allotment to rely upon. Effluent, treated wastewater, also can offset groundwater pumping through use for irrigation or aquifer recharge. For Marana, access to effluent has been the driving force in its quest to keep the wastewater treatment facility. But that quest received a setback in June, when the Arizona Court of Appeals ruled in one of the cases in the Pima versus Marana dispute that the town did not have proper authority from its residents to operate the facility. Although residents approved a measure in 1988 that allowed the town to operate a wastewater system, the court said it lacked specificity. For that reason, the town plans to put the question of operating a waste-

water system to voters on March 12. It has been working on an education program to help residents understand the issue prior to the ballots going out, which starts Feb. 12. If voters don’t approve the March ballot questions, one which asks if the town should operate and own the disputed facility and a second that asks the same of another small facility, which the town does not operate and currently serves just 60 customers. Taking on the second facility was part of the settlement terms the county proposed. If voters reject the questions, Marana would likely have little choice but to return the hard-fought facility to Pima County. Marana plans to hold two open houses to help educate people on the issue. They are scheduled for 5 p.m. Tuesday (Feb. 5) at the Marana Municipal Complex, 11555 W. Civic Center Drive, and 6 p.m. Feb. 11 at Wheeler Taft Abbett Sr. Library, 7800 N. Schisler Drive. More information about the ballot question is online at www.marana.com. Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.


InsideTucsonBusiness.com

FEBRUARY 1, 2013

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10 FEBRUARY 1, 2013

INSIDE TUCSON BUSINESS

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11

MEDIA

Makeover of ‘AZ Illustrated’ to be revealed on Monday By David Hatfield Inside Tucson Business It’s a week later than some might have hoped but the big reveal happens at 6:30 p.m. Monday (Feb. 4) when KUAT-TV 6 takes the wraps off the makeover of “Arizona Illustrated,” now “AZ Illustrated” and, as we guessed a couple of weeks ago, they will be pronouncing it “A-Z Illustrated.” “It’s a total re-branding,” says Sue DeBenedette, marketing manager for Arizona Public Media. The changes include a new set and a new format in which the shows will be themed by night. According to Arizona Public Media, the new set, custom-designed by Tucson architect Rick Joy, provides a 360-degree setting that can accommodate one-on-one interviews, round-table discussions, demonstrations, and live performances all surrounded by “a spectacular circular photographic backdrop of the Tucson skyline and its iconic mountain ranges.” As for the nightly themes, Mondays will be devoted to metro issues and hosted by Maria Parham, who last month was named editor of the Arizona Daily Star’s editorial page. Tuesdays will be for science and hosted by Jane Poynter, president and chairwoman of Paragon Space Development and former Biosphere 2 crew member. Wednesdays will deal with environmental issues and hosted by Georgia Davis, who has been a producer with Arizona Public Media. Thursdays will be devoted to the arts and hosted by Elizabeth Burden, a visual artist and past president of the Warehouse Arts Management Organization (WAMO). And Fridays will remain devoted to politics and hosted by Jim Nintzel of the Tucson Weekly. “AZ Illustrated” will continue to be taped in advance of broadcast, though there will be a two-minute segment anchored by Christopher Conover at the beginning of each halfhour taped closer to air-containing general news. As is the case these days in media, different stories will be used across different Arizona Public Media platforms, with some also showing up on radio or online. Also stories that originate either on radio or online could be furthered explored in the “AZ Illustrated.”

Addy Awards Along with handing out this year’s Addy Awards, the American Advertising Federation Tucson chapter is whetting potential attendees’ appetites with announcements of special awards. This year’s special award winners are: • Art Waller, who founded Waller Advertising in 1968, is this year’s recipient of the Silver Medal Award, which the Advertising Federation has been handling since 1959 to recognize

men and women who have made outstanding contributions to advertising and who have been active in furthering the industry’s standards, creative excellence and responsibility in areas of social concern. • Steve Swinehart, commercial producer at KGUN 9, will get the Advertising Professional of the Year award, which is given annually to a person for being a model for others in advertising. • Radio talk show host John C. Scott, whose show airs from 3-5 p.m. weekdays on KVOI 1030-AM, will get the Golden Mic Award, which was established to recognize media personalities who have given of their time to help raise awareness and contributions for area charities. • Greg Hansen, sports columnist for the Arizona Daily Star, will receive the Golden Pen Award, which goes to a member of the advertising, public relations or print media fields for his or her work in words or drawings. • Sharmon Woods, president of Southwest University of Visual Arts, will receive the Phyllis Ehlinger Woman of Excellence Award that recognizes successful women business owners or executives who are dedicated to philanthropy and mentoring. This year’s Addys will take place at 8 p.m. Feb. 16 in the Leo Rich Theater in the Tucson Convention Center complex, 260 S. Church Ave. The ceremonies will be preceded by a cocktail reception starting at 6:30 p.m. Prepaid reservations made by Feb. 14 are $75 per person, $65 for Advertising Federation members, or $35 for members of Ad2 Tucson, emeritus members and students. Make reservations online at www.aaftucson.org/ . Admission at the door without reservations is $5 more.

T: 520-722-0707

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(Uno) Name in news Following up on last week’s item about the departure of the syndicated morning show host Alex “El Genio” Lucas from La Preciosa KTZR 1450-AM, Clear Channel this week launched “The Carmen Jara Show” on the station and in five other of its Hispanic markets. The new show is heavy on entertainment with comedic parodies, interviews and music. Jara, who is a singer, last year was also named the host of “¿Quién Tiene la Razón? (Who’s right?),” a reality show that airs at 1 p.m. weekdays on UniMás 34 KFTU 34. Clear Channel didn’t say why it made the change. Lucas’ show had been dropped in Tucson a few years ago in part because Clear Channel wanted to reduce the number of programs it was buying from outside syndicators, but that time local officials said they were able to come to terms to return the show to the Tucson airwaves.

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

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12 FEBRUARY 1, 2013

INSIDE TUCSON BUSINESS

SALES SALES JUDO

Giving you the business: Is it OK to lie to sales people? This topic came to mind as I was reading the February edition of Wired and came across Adam Higginbotham’s excellent article, “Welcome to the United States Border, Please Answer Each Question Truthfully.” Higginbotham reviewed efforts by Jay Nunamaker and Judee Burgoon, professors of management information systems at the University of Arizona, to determine if a person is being truthful or deceitful on the fly, from a distance and without any physical contact whatsoever. All conventional “lie detectors,” like the first one developed by Harvard psychologist William Moulton Marston, require sensors, like systolic blood pressure cuffs, to be attached to seated subjects. Later other sensors, such as those that measure galvanic skin responses and heart rates, were added and their measurements recorded using pens that leave squiggly graphs on moving rolls of paper, hence the term “polygraph.” Remember the December 1999 plot that was foiled to bomb Los Angeles International Airport. U.S. Customs Agent Diana Dean noticed that Ahmed Ressam, driver of a car coming off the ferry from Vancouver, B.C., at Port Angeles, Wash., was acting “hinky,” as she later described it. She searched the car and found bomb making materials. Ressam tried to flee on foot but was captured and arrested. He was tried, convicted and sentenced to 37 years in prison. Most importantly, the millennium bombing of LAX never took place. So, could agent Dean be cloned? Just what were the “hinky” behaviors she detected? Could they be defined and then

could others be trained to detect them reliably? The answers were “sort of, but only sometimes,” and “just not often enough.” UA professors Nunamaker and SAM WILLIAMS Burgoon developed an “interrogation bot” to do a better job. Their Embodied Avatar kiosk consists of a 22-inch LCD screen that displays an animated talking head. This Avatar poses questions to a subject standing in front of it. As the subject responds, two sensors measure pupil dilation and changes in vocal pitch. There’s a finger print scanner and a high definition video camera that records the subject’s responses and facial expressions. So far the system seems to do be doing a good job of detecting “hinky” behaviors and referring those subjects who deserve a closer look to trained humans. What does any of this have to do with sales? Here the demand for deception detection is actually fairly high, because far too many sales executives have been strung along by prospects who have no intention of buying. If they can detect this deception, they should be able to disengage and bail out earlier in the sales cycle and move on to better opportunities. As it turns out some buyers and many purchasing agents have attended negotiating programs, such as those offered by Chester Karras, to learn new skills. Some of these skills combine assertiveness training

with elements that could be used either to create false appearances or to be outright deceitful. After all, you have to fight fire with fire, don’t you? Aren’t salespeople either naturally deceitful or trained to be so? While it’s true some sales people, like some in the general population, are deceitful. My own unscientific sample, having been a sales manager and trainer for many years, is that most sales executives involved in complex, consultative sales aren’t. Why not? Well, for starters the consequences of lying or even dissembling to a prospect in big ticket sales are usually just so swift and so negative. In large, asset-rich companies prospects who find sales people using deceptive practices usually bring them to the attention of their sales managers or legal departments, and heads roll! After all, one of the most important assets of the selling company is its reputation. Another is its cash, a tempting target for litigators and enforcement agencies alike. Sometimes lesser deceit disguises itself as over optimism or exuberance, but those sales executives who overpromise and under deliver quickly erode or destroy the trust of their prospects and clients. As we all know, if there is no trust, there is no sale. My point is that there are usually self correcting mechanisms in those instances where sales executives may be foolish enough to use deceitful or unethical behaviors. Not so for buyers, though, and sales people are fair game for many of them. “Your price is too high!” “The other guys have offered better pricing, better terms, better service levels and you need to beat their offers.” Or they contact you out of the blue saying, “I’m unhappy with my current vendor and would like to talk with you about giving you our business.” Yes indeed! They are definitely thinking of giving you the business! Friend and colleague, Jim Dunn, is a principal at the Whetstone Group LLC, a San Diego based sales consultancy. In his book, “Common Sense Selling,” Dunn writes about one of his early learning experiences as a young business-to-business sales executive. A hot prospect exhibiting all of the right buying signals contacted him and encouraged Dunn fly to

meet in order to learn about and bid on a special opportunity. Dunn spent weeks learning about the needs and speaking with key stakeholders. This allowed him to prepare a first rate presentation. After he had delivered it the decision makers congratulated him on it as the best they had seen. They said they were very impressed with him and his offering, that all signs were positive and they would get back to him shortly. Dunn told his manager the “deal was in the bag” and went out and spent his commission in advance. Dunn diligently followed up but to no avail. He later learned the company signed a long-term contract with the incumbent. He learned from a friend of a friend the prospect had used Dunn’s proposal and bid to “whip the existing provider into shape.” This lesson isn’t unique. Most of us in sales experience it. Would the sensors contained in the Embodied Avatar have spotted the deceptive behaviors of Dunn’s prospects? Probably so. But it’s a little awkward to bring an interrogation bot along with you on a sales call. So be your own bot. Here are a few things to ask and to listen for: • “Who is your current provider and what specific problems you are experiencing?” • “If we can ‘fix’ those problems, doing so may cost you more. Is that acceptable or is price the most important factor for you?” • “When incumbents learn about our offer, they usually counter. How will you respond?” • “I can’t invest time with you if you are using my proposal to encourage an incumbent to perform better. Is this what you are doing or have you made the decision to replace your current provider?” As you pose these questions in face-toface meetings, look for “hinky” behaviors: pupil dilation, averted gaze, etc. If you are on the phone, listen for pregnant pauses or any vocal tremors. And remember, it’s OK to lie to salespeople, so sellers beware.

Contact Sam Williams, president of the business-to-business sales consultancy firm New View Group, at swilliams@ newviewgroup.net or (520) 390-0568. As of this month, Sales Judo will appear only once each month, resuming again in the March 15 issue of Inside Tucson Business.

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FEBRUARY 1, 2013

1. BASIS Scottsdale, 2038 * 2. BASIS Tucson, 1966 * 3. University High School, Tucson, 1896 4. Scottsdale Preparatory Academy, 1856 * 5. Gilbert Classical Academy, 1832 * 6. Tempe Preparatory Academy, 1817 * 7. Mesa Preparatory Academy, 1809 * 8. Veritas Preparatory Academy, Phoenix, 1806 * 9. Arizona School for the Arts, Phoenix, 1805 * 10. Glendale Preparatory Academy, 1759 * 11. Catalina Foothills High School, Tucson, 1697 12. Northland Preparatory Academy, Flagstaff,

1690 * 13. New School for the Arts and Academics, Tempe, 1677 * 14. Horizon Community Learning Center (Phoenix), 1675 * 15. Chaparral High School, Scottsdale, 1668 16: Heritage Academy, Mesa, 1665 * 17: Vail High School, 1660 18: Sonoran Science Academy, Phoenix, 1659 * 19: Foothills Academy, Scottsdale, 1647 ** 20(tie). Desert Mountain High School, Scottsdale, 1646 Ironwood High School, Glendale, 1646 James Madison Preparatory School, Tempe, 1646 * 23(tie). Mountain View High School, Mesa, 1638 Prescott High School, 1638 25. Payson High School, 1635 26. Desert Vista High School, Ahwatukee, 1633 27. Cactus Shadows High School, Cave Creek, 1632 28. University High School, Tolleson, 1629 29. Barry Goldwater High School, Phoenix, 1628 30. North Canyon High School, Phoenix, 1622 31. Hamilton High School, Chandler, 1621 32. Corona Del Sol High School, Tempe, 1620 33. Arizona Virtual Academy, Phoenix, 1619 * 34. Tri-City College Prep High School, Prescott, 1618 * 35. Empire High School, Vail, 1617 36(tie). Flagstaff High School, 1613 Ironwood Ridge High School, Oro Valley, 1613 Casa Verde High School, Casa Grande, 1613 39(tie). Highland High School, Gilbert, 1610 Chandler High School, 1610 Arizona Agribusiness and Equine Center, Phoenix, 1610 * 42. Liberty High School, Peoria, 1605 43. Academy of Tucson, 1604 * 44. Horizon High School, Scottsdale, 1601 45. Gilbert High School, 1600 46. Wickenburg High School, 1599 47. Coconino High School, Flagstaff, 1590 48. Kingman Academy of Learning High School, 1589 * 49. Mesquite High School, Gilbert, 1587 50. Shadow Mountain High School, Phoenix, 1586 * Charter schools. ** Private schools.

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of Tucson ter

Inside Tucson Business Using data from the College Board, the Arizona Department of Education has ranked the state’s 50 top high schools by their average SAT scores, with two Tucson schools among the top three and another falling just outside the top 10. State officials compiled the ranking as a project for the Phoenix Business Journal adding the average scores from each of the three test subjects on the SAT test. In the case of Tucson’s highest ranking school, BASIS Tucson, 39 students took the SAT, scoring an average of 650 on the critical reading test, 685 on the math test and 631 on reading for a combined average score of 1966. Molly Edwards, public information officer, didn’t elaborate further on the scores, noting that the College Board is responsible for it. Tucson Unified School District’s University High School was ranked No. 3, making it the highest ranking public high school in the state and the only one in the top 10. University High is a college prepatory high school housed on the campus of Rincon High School and although it’s a public high school, students must go through an admissions process that includes passing a test. Generally, it only accepts the top 3 percent of students in TUSD. As a result, Catalina Foothills High School, which is in its own district and ranked No. 11 on the list, was the highest-ranking public high school in the state without a limited admissions process. High school rankings by SAT scores:

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Top schools ranked by SAT scores

Society fo rH um a

NEWS

13

Register now at shrm-gt.org for the

2013 Innovation in the Workplace Celebration Tuesday, March 12, 2013 2:00 to 5:00, 5:00pm Champagne Toast Doubletree Hotel - Reid Park Pamela Jett, Professional and Motivational Guest Speaker Innovative Communication Leader As an internationally recognized communication skills expert, speaker and author, Pamela Jett works with professionals to better understand that "Words Matter" when we are looking to achieve results, make an impact and improve effectiveness, thus impacting employee engagement. Pamela is a true innovator who takes people beyond basic theory and strategy to an unparalleled level of application. $35 per person, or $30 per person for groups of 3 or more $300 for tables of ten If you are an awards finalist or making reservations for groups of 4 or more, please contact the SHRM-GT office at 520-299-6787 to register. Sponsorship, goody bag and door prize opportunities are available, for more information please contact the SHRM-GT office at 520-299-6787 INNO UNITY OGY • COMM VATIO L O N H N • LEA C DERSHIP • DIVERSITY • TE


14 FEBRUARY 1, 2013

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ON THE MENU

ARTS & CULTURE

Ravens vs. 49ers, or is it Blue crabs vs. Dungeness?

Arizona Opera returns with performance of ‘Tosca’

considered to be a destination for many Baltimore and San Francisco can’t be seafood delicacies, including the cioppino farther away from one another on the U.S. to which many have granted native status. map, yet they enjoy some similar culinary However, the dungeness crab has seemed traditions with their mutual love affair with to claw its way to the top, with a certain crustacean. It’s nearly foodies flocking to the Fog City impossible to find a menu in the for its delicate flavor. cities by their respective bays Chef Albert Hall of Acacia that doesn’t feature crab in Real Food and Cocktails, 3001 E. some form, but, interestingly, Skyline Drive in Gallery Row, has their varieties are as wide as the been around fresh fish for most distance between them. of his career, which has taken This Sunday’s Super Bowl him from the campus of the Culiwill have many millions nary Institute of America to cheering enthusiastically for resorts and fine dining establisheither the Ravens or the 49ers ments across the country. While and we foodies will add our own MATT RUSSELL Hall regularly features fresh fish voices to the mix, when the Blue on the Acacia menu, it was the Crabs of Baltimore go up against dungeness crab that got my attention on a the Dungeness Crabs of San Francisco. recent visit. Over the years, Trident Grill, 2033 E. Compared to the blue crab, the dungeSpeedway, has morphed into a hangout for ness has a relatively higher meat-to-shell former residents of Maryland. Owner ratio, yielding a meat that occupies more Nelson Miller grew up in the Free State, space by volume on the plate. and with his proximity to Chesapeake Bay, Hall currently features the King Louis he got up-close and personal with many a Dungeness Crab Salad on his menu, with blue crab. Today, his restaurant pays homage to the food and beverage traditions chunks of dungeness, greens, egg, tomato, cucumber, lemon and capers, with a classic of the Mid-Atlantic seaboard, and many of Louis dressing into which fresh whipped his patrons suggest his Maryland blue crab cream is folded. cakes best represent that sense of place. Once you get suited up for Sunday’s Maryland crab houses serve up blue game, only one question remains – which crabs by the bushel, simply steamed and crustacean will you be cheering for? seasoned, and presented to their guests for picking apart and eating by hand. However, the blue’s sweet meat is often rendered for Contact Matt Russell, whose day job is other dishes, most notably the crab cake. CEO of Russell Public Communications, at The Trident’s Maryland blue crab cakes mrussell@russellpublic.com. Russell is also are pan-fried and drizzled with aioli, and, if the host of “On the Menu Live” that airs 4-5 you’re like those Marylanders who p.m. Saturdays on KNST 97.1-FM/790-AM appreciate the critical role Old Bay and is featured in the Weekend Watch seasoning plays in an encounter with a segment of the “Buckmaster Show” from crab, you can certainly request an extra noon-1 p.m. Fridays on KVOI 1030-AM. shake or two. On the opposite coast, San Francisco is

Edward Top, the symphony is one of Opera returns this weekend with the Canada’s most successful performing arts Arizona Opera’s performance of “Tosca,” institutions. The 88-member orchestra the classic opera by Italian composer performs to a Canadian audience of more Giacomo Puccini that debuted in 1900. Set than 200,000 annually. Tickets in 1800, the opera is based on range from $35 to $80, with the French play “La Tosca,” discounts for students, children, which is set in Rome on the eve UA staff, military and seniors. of Napoleon’s invasion. “Tosca” Buy them through UApresents. is one of the most frequently performed operas. Arizona Opera performances are at 7:30 p.m. Saturday (Feb. 2) and 2:30 “Love Song,” a comedy that p.m. Sunday in the Music Hall tells the story of an oddball, his in the Tucson Convention family and a quirky love affair, is Center complex, 260 S. Church the next production of the Ave. Single tickets range in HERB STRATFORD University of Arizona School of price from $25 to about $70. Theatre, Film and Television. Buy them online at Preview performances will take azopera.org/tickets place at 1:30 p.m. Sunday (Feb. 3) and 7:30 p.m. Monday, followed by opening night Feb. 6 and Thursday through Saturday performances at 7:30 p.m. through Feb. 23. A new musical event will take place There will also be four matinee perforstarting next weekend. The Tucson Desert mances at 1:30 p.m. Feb. 10, 16, 17 and 24. Song Festival, is a 10-day classical voice All performances take play at Marroney festival that will run Feb. 8-17 featuring Theatre, 1025 Olive Road on the UA internationally known soloists performing campus near the southeast corner of along with local performing arts including Speedway and Park Avenue. Tickets are $28 the Tucson Symphony, Ballet Tucson and with discounts for UA employees, seniors, Chamber MusicPlus at various venues in miliary and students. Tickets for the the region, including the University of preview performances are $17 each. Buy Arizona. Master classes, recitals and seminars at the UA will round out the event them online at tftv.arizona.edu schedule. For details go online to www. Contact Herb Stratford at herb@ tucsondesertsongfestival.org or toll-free ArtsandCultureGuy.com. Stratford teaches 1-888-546-3305. Arts Management at the University of Arizona. His

Theater

Song festival

Music

column appears weekly in Inside Tucson Business.

The Vancouver Symphony Orchestra performs at 8 tonight in Centennial Hall, 1020 E. University Blvd. on the UA campus. Featuring a program of works by composers Edvard Grieg, Sergei Prokofiev and

W FOLLO DER A E L E TH

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InsideTucsonBusiness.com

FEBRUARY 1, 2013

15

BRIEFS GET ON THE LIST

Next up: Commercial photographers, Video production firms Now that the 2013 Book of Lists is out, work is underway gathering data for the 2014 edition. Upcoming lists are: • 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.

MINING

Silver Bell Mining settles over acid spill in 2010 Arizona Department of Environmental Quality officials announced Tuesday (Jan. 29) that Silver Bell Mining LLC has agreed to pay a $60,000 penalty and perform preventive actions valued at $50,000 as part of a consent judgment to resolve water quality violations.

The settlement goes back to a June 2010 spill from a pipeline at its Silver Bell Copper Mine near Marana. As part of the settlement, Silver Bell Mining has agreed to prevent future spills by writing and implementing a pipeline operations and maintenance manual covering its more than 20 miles of pipelines, performing periodic pipeline physical inspections, tests and repairs and training employees on proper procedures for fusing pipe segments together.

70 years

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16 FEBRUARY 1, 2013

INSIDE TUCSON BUSINESS

REMEMBERING TUCSON

Rukin Jelks and Rillito Downs, first U.S. quarter-horse track By Mary L. Peachin Inside Tucson Business Although the Jelks family had a 1,000acre farm near McCrory, Ark., where they cotton and soybeans prior to the turn of the 20th century, Jefferson Rukin Jelks, who was born Dec. 21, 1899, suffered from tuberculosis and had an interest in animals. So after he and his childhood sweetheart, Della Leona Jeffries, were married, they struck out for Tucson. Jelks enrolled at the University of Arizona studying animal husbandry. “For siring purposes, my grandfather was the greatest judging champion of cattle and horses. He didn’t have to read the pedigree, he could tell by examining body definition. He was also a great horse trainer,” remembers Jim Jelks, who describes himself as “the only son of an only son of an only son born 10.21.1927” at Tucson’s early birthing facility, the Stork’s Nest. In those days, it was not uncommon for women to become at-risk during childbirth and Della Jelks contracted and succumbed to toxema after giving birth to her son, Rukin. Jefferson later married Mary Coburn Haskell, an “uptown gal from Cleveland” and sister to Melville Haskell, one of his hunting buddies. But during the early years of his life while his father was a widower, Rukin was sent back to Arkansas. Newlyweds Jefferson and Mary brought Rukin back to Tucson, though he was sent off to Judson Boarding School in Paradise Valley. In the early 1900s there were four ranches on Tucson’s far east side near Vail, including the X-9 owned by the Jelks. The other ranches on the east side were Tanque Verde, owned by Jim Converse and now known as the Tanque Verde Guest Ranch; Rocking K, which belonged to Melville Haskell and is part of a masterplanned development by Diamond Ventures; and La Posta Quemada, owned by Charles Day, father of former Supreme Court Justice Sandra Day O’Connor and former Pima County Supervisor Ann Day and now operating as Colossal Cave. The marriage of Jefferson Rukin Jelks and Mary ended in divorce, after which Jefferson married Frances Barry. “A real stunner with raven hair and ruby lips,” says grandson Jim Jelks. Jefferson had met her at Ronstadt’s Hardware on Sixth Avenue where she worked. Rukin Jelks remembers that she was just 10 years older than he was and was “more like a sister than a stepmother. She would even help me find garnets in Tucson’s arroyos.” Intent on studying geology, Rukin moved to Greenough, Mont., with his stepmother, Mary, and her new husband Donald Swift Hunter. During the winter he

Rukin Jelks, seated, with wife Keri Jelks, behind him, at the Mountain Oyster Club.

would ski a mile to attend the University of Montana in Missoula. “I was doing great academically until I had to take calculus,” Rukin Jelks recalls of the course that ended his dream of a career in geology. Instead, he earned degrees in anthropology and sociology and went to work for the chief assayer at an Anaconda copper mine near Butte. The miners would give Rukin “pretty rocks,” which were gems and are now valued as a quality mineral collection with many on exhibit at the Arizona-Sonora Desert Museum. While attending the University of Montana, Rukin met and married Carolyn “Keri” Gillett. They’ve been married 62 years. When the couple came to Arizona, Rukin became a dynamite salesman for Hercules Powder Company. His territory included all of Arizona, Imperial County in California, Clark County in Nevada and all the way to Hidalgo in central Mexico. “Mas o menos, I drove 30,000 miles a year. Every year, they gave me a new car,” Jelks remembers. In Arizona, Hercules was headquartered in the mining town of Bagdad near Prescott. The Jelks settled into a home in Phoenix. “I peddled dynamite to the mines until I just got tired of being a traveling salesman,” Jelks said. “After 20 years on the road, one day a Phoenix driver side-swiped me and after flipping me the bird kept on driving. I blew my stack and told Keri that we were moving. “Some friends told me about 80 acres of

land for sale in Lyle Canyon near Elgin, south of Sonoita. The neighboring ranch was owned by a retired Navy commander, who was named Hanson. He had a nice foreman’s house that Keri and I rented until our home was built. A year later, I went to Hanson and asked him to sharpen his pencil, because I wanted to buy his land. He liked me and my car, and sold me his ranch. That ranch, named the Diamond C, was formerly a guest ranch of reputable repute. The former owner, Chiquit Mosen, who wore red velvet jumpsuits, would provide.” Since Keri’s name was Carolyn, the Jelks kept the ranch name, Diamond C. In the 1940s, Rukin Jelks built a house that would be the cornerstone of Rillito Downs racetrack. It was one of Arizona’s first adobe burnt homes. The adobe in the Sonoran Revival hacienda was laid length-wise so the walls were unusually thick. It still has original hand-hewn mesquite beams, saguaro-ribbed ceilings, Mexican ironwork, and brick floors. The home would eventually be used as a stud farm. Rukin traveled to Keeneland, a renowned racetrack in Lexington, Ky., to buy a thoroughbred stud that sired Piggin String, the first cross-bred world champion quarter horse stallion. Old Pueblo, Queenie, and Miss Todd were all Piggin String-sired winning quarter horses. Rukin built Rillito Downs in his backyard. It was the first quarter horse track in the United States; Ruidoso, N.M., was the second. The Rukin Jelks Quarter Horse Stakes, run at 350 yards, had a purse of $18,500 when it was run last year on March 25.

Through a proposed partnership between the Rillito Park Foundation and Pima County, which currently owns the property, the historic Jelks family stud farm may soon open to the public. Since February 2012, the home site has been listed for inclusion to the National Register of Historic Places. The stable features a mural by Western artist Hewlett “Tex” Wheeler. It is the goal of the Rillito Park Foundation to stabilize the structure and re-landscape the grounds. There will also be additional parking, terraces and catering facilities. Rukin and Keri have three sons. Rukin III, who sadly became disabled by a stroke several years ago, has five adoring daughters. Daniel and his wife Barbara live on the big island of Hawaii where he farms catfish and tilapia. They have a son and daughter living on the mainland. And the youngest son Jimmy is married to Karen, a semiretired university science professor. They have daughters and a son. Jimmy leases an organic farm near Davis, Calif., and manages the Diamond C ranch cattle operation. “These days I have two replaced knees, hips, and a shoulder, and all the arthritis that goes with getting older. I may be a bionic man, but to our children and grandchildren, we are just the ‘Osas,’ grandma and grandpa bear.

Do you have an historical Tucson story to share? Contact Mary Levy Peachin at mary@peachin.com. Her historical columns appear the first week of each month in Inside Tucson Business.


InsideTucsonBusiness.com

FEBRUARY 1, 2013

17

GOOD BUSINESS ON GUARD

How to guard your business against possible identity theft Identity theft isn’t only of personal concern. Identity thieves also prey on businesses. In fact, businesses often provide a more lucrative take for criminals, and are targeted with more sophisticated techniques. Because businesses have higher credit limits and make larger purchases than consumers, charges by scammers can sometimes escape the notice of owners, accountants and creditors. For example, consumer ID theft costs victims less than $5,000 on average, individuals and criminal networks that target businesses can easily haul more than 10 times that amount. According to a report by Javelin Strategy & Research, a consultancy based in Pleasonton, Calif., business fraud totaled more than $18 billion in 2011, the most recent year data is available. Another study by the Association for Financial Professionals in Bethesda, Md., found that two-thirds of U.S. businesses experienced actual payment fraud in 2011. Fraud isn’t only being committed at the expense of large organizations. Small businesses also have become targets for fraudsters. If a criminal even suspects your company has money, credit or personal identifying information about customers, any business can become a target. For businesses the best way to protect themselves is to develop and maintain a rigorous data protection system. The more difficult it is for criminals to steal your business’ data, the more likely they are to leave your company alone and move on to

lower hanging fruit. So how do you ensure your company is doing all it can to protect its data? A great first step is to visit www.bbb.org/ data-security. KIM STATES Better Business Bureau (BBB) called on experts from global law firms, Kelley Drye Warren LLP and Bryan Cave LLP, as well as NACHA (formerly the National Automated Clearing House Association), which manages ACH Network electronic payments. They drafted a comprehensive guide for small businesses on ways they can make sure their sensitive data is protected. The guide goes over things including how to spot business identity theft, dispose of sensitive data, respond to third-party requests for data and a myriad legal issues that security breaches and the safeguarding of consumer data inevitably create. Data for any given business will never be 100 percent safe — even organizations that spend millions of dollars annually to safeguard their data experience security breaches at some point — but by taking the proper precaution it is possible to drastically lower the chances a business will become a victim of identity theft, or suffers a security breach. Businesses that want to guard against cyber-criminals should start by taking the following steps:

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TUCSON BBB ACTIVITY REPORT JANUARY 2013 Top 10 most complained about industries

Complaints

Settled

Auto repair and service

9

67%

Air conditioning contractors

5

100%

Martial arts supplies and equipment

4

25%

Apartments

4

50%

Movers

4

75%

New car auto dealers

4

100%

Cable and satellite TV companies

4

100%

Pest control services

3

67%

Local charities

3

100%

Used car auto dealers

3

Top 10 most inquired about industries

100%

Inquiries

1.

Plumbing contractors

1,503

2.

Roofing contractors

1,239

3T

Air conditioning contractors

1,221

3T

Auto repair and service

1,221

5.

General contractors

1,107

6.

Used car auto dealers

1,069

7.

Travel clubs

8.

Landscape contractors

650

9.

Property management

622

Dentists

606

10.

682

Source: BBB of Southern Arizona

• Determine what makes sense for your type of business. This will be based on the type of data you collect and store, and the kind of resources you have managing that data. If your small business keeps information about customers in several formats — such as on paper, on computers, and online — you should sit down with a team of employees, including an information technology person and office manager, to discuss the issues together as a group to make sure all viewpoints are considered. • Inventory your data. Inventory the type of data you collect, store and/or transmit. Inventory how you store your data. Inventory where you store your data for each type and format of customer information. Inventory how data is moved and who has access to it. Take into consideration your type of business, and the stationary and portable tools your employees use to do their jobs. This is a very important part of the inventory process, as it will help you begin to identify the potential ways that sensitive data could be inadvertently disclosed. If you think you need outside help to identify potential leak points, consider consulting with a data forensics team or the bank or processor

that provides your merchant account services. Inventory the data controls you either have or don’t have in place. • Evaluate costs versus benefits of different security methods. Brainstorm different types of security procedures and think about whether they make sense for the type of information you maintain, the format in which it is maintained, the likelihood that someone might try to obtain the information, and the harm that would result if the information was improperly obtained. • Write it down. Type up the checklists you’ve just created, the security measures you are taking, and an explanation on why these security measures make sense. Congratulations — you’ve just created the foundation of your written security policy! Contact Kim States, CEO of the Better Business Bureau of Southern Arizona, at kstates@tucson.bbb.org or (520) 888-6161. The BBB website is www.tucson.bbb.org. On Guard appears the first week of each month in Inside Tucson Business.


18 FEBRUARY 1, 2013

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

In lawsuit-happy U.S. there are ways to protect your assets The United States is the most litigious country in the world. Data shows there is one lawyer for every 265 Americans. Consequently, lawsuits, frivolous and otherwise abound. Americans spend more on civil litigation than any other industrialized country according to a study in the British publication, the Economic Journal. “There are over a hundred million lawsuits every year. One in three people will be sued in the next twelve months. The average person and business is sued up to five times over a lifetime,” says asset protection attorney Hillel Presser, who is based in Deerfield Beach, Fla. Nobody expects to get sued but anyone can sue anyone else for any reason. A car accident, a bad business transaction, an injury on your property can lead to lawsuits that can wipe out everything you have. The cost of litigation can be staggering. Successful entrepreneurs, small business owners, dentists, doctors and high net-worth individuals become the target of litigation lawyers. Commercial success spawns litigation. Lawyers don’t sue people who have no assets. How do you protect your assets and mitigate the potential losses in your business and personal life? Some might think a trust. With revocable trusts you can change the terms or dissolve them. They are very flexible. Irrevocable trusts can’t be dissolved until the purpose of the trust is completed and the terms can’t be changed. They are inflexible. According to a Jan. 2 report on Fox Business, “The courts are very clear about what money is protected in a lawsuit and what is not. Revocable trusts have no protection whatsoever. If you are sued, any money you have in your revocable trust is completely vulnerable.” An irrevocable trust will provide lawsuit protection but has significant trade-offs and stringent rules. It will do no good to establish an irrevocable after a lawsuit has been initiated. Trying to hide assets may lead to fraudulent conveyance law violations. Consider converting your non-exempt assets to exempt assets. Typically non-exempt assets might include cash, stocks and bonds. Exempt means it is protected by state law. What may serve as a viable alternative to

an irrevocable trust that will convert your non-exempt assets to exempt assets is an Indexed Universal Life (IUL) policy. It is a foundational strategy in a wealth protection and income plan. SUSAN MOORE It requires no lawyers and has numerous additional benefits: • Guaranteed annual return; • No risk to principal; • Indexed growth at a competitive annual rate, usually 6 to 10 percent or more; • The ability to withdraw money without penalty; • Protection against creditors due to a lawsuit or bankruptcy in most cases; • Liquidity options; • Living benefits with many policies including income for long term care and terminal illness; • The ability to buy large ticket items using your cash values so you earn interest instead of the bank; • Tax free withdrawal of your money when you decide to retire. You can protect your money from lawsuits without giving up control of it. Another asset protection product is the Fixed Indexed Annuity (FIA), also provided by insurance companies. FIAs are also a good haven for your qualified (IRA) retirement savings. The FIA offers growth indexed to the market and guaranteed gains with no loss of principal as well as asset protection. Many FIAs also offer riders that will guarantee a lifetime of income. Insurance products have much to offer from asset protection to retirement planning, income and wealth transfer strategies. Consult with a qualified insurance agent to discuss strategies utilizing insurance products that can make a difference in your life planning.

Contact Susan L. Moore Vault, president of Moore Financial Strategies, at susan@ moorefs.com or (520) 296-4464. Moore Vault hosts “Safe Money Strategies” from 7-8 a.m. Saturdays on KNST 97.1-FM/790-AM.

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

Company Name

Symbol

Jan. 30

Jan. 23 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 18.38 45.06

0.03 0.09 19.03 43.97

0.00 0.00 -0.65 1.09

0.02 0.01 9.56 35.20

0.12 0.60 19.67 45.30

8.80 1.08 2.43 11.38 63.28 10.25 96.88 15.90 55.88 4.01 21.46 41.95 39.03 38.53 42.23 16.84 102.53 40.40 51.65 13.84 84.24 69.13 23.06 35.16 36.25 67.24 68.67 203.52 34.42 63.05 5.28 47.13 36.83 18.86 45.73 27.76 1.25 41.60 38.21 43.36 59.83 39.54 40.14 43.16 51.97 66.34 20.63 21.05 54.15 54.65 19.16 49.06 46.39 12.63 11.24 44.29 40.40 60.98 18.21 32.82 50.14 24.08 131.17 19.82 14.30 33.14 69.75 39.87 34.97 12.18 23.54

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

-0.35 -0.34 0.02 -0.04 -0.98 0.04 0.40 0.50 -0.51 -0.12 0.57 -0.07 -0.97 0.76 0.18 -0.04 0.41 0.05 -0.96 0.06 3.20 0.97 1.24 0.14 0.70 0.78 0.40 -1.20 -0.05 -0.62 0.08 0.90 -0.36 0.23 2.28 0.10 -0.05 -1.01 0.33 -0.01 0.83 1.31 0.99 0.35 1.40 -2.37 2.28 0.21 -4.05 0.27 -0.69 1.03 1.33 -1.19 -0.12 0.41 0.59 -0.06 0.19 -0.26 -0.68 -0.92 -4.18 -0.22 -0.77 0.05 0.26 0.35 0.02 0.70 0.96

7.97 0.36 1.48 6.72 50.95 5.30 77.89 11.20 52.10 2.97 14.97 24.61 26.57 18.60 22.19 12.13 81.98 36.52 41.93 8.42 43.70 50.27 13.45 30.54 21.38 44.30 52.21 181.85 27.10 53.38 3.94 30.83 27.96 6.46 41.35 20.98 1.04 21.49 24.76 37.40 53.18 32.31 33.93 24.07 41.11 56.59 15.69 7.46 48.33 38.63 14.73 33.03 38.40 6.25 7.76 39.01 25.77 51.01 14.04 26.06 33.62 17.45 104.08 18.36 6.78 28.26 57.18 28.53 29.55 7.80 16.80

10.92 1.10 3.65 12.20 64.79 10.57 97.75 27.95 60.00 4.93 22.29 43.34 40.28 38.74 42.77 17.07 105.97 43.43 52.63 14.20 89.98 69.72 24.03 47.28 36.73 68.15 69.25 211.79 37.70 64.47 5.85 47.35 38.62 19.57 55.25 28.00 1.81 43.22 39.26 43.73 62.83 42.17 41.84 44.30 53.50 71.25 43.18 21.97 59.34 55.21 23.16 49.56 85.90 14.32 11.62 46.08 42.55 65.80 18.62 34.24 51.29 26.37 136.19 54.38 15.64 35.46 77.60 40.31 36.60 12.50 23.60

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

FEBRUARY 1, 2013

19

INSIDE REAL ESTATE & CONSTRUCTION By Roger Yohem Inside Tucson Business As the economy continues to recover, former University of Arizona economist Gerald Swanson cautions businesses, and taxpayers in general, should be concerned about what’s likely to become “the new normal.” The middle class is disappearing. Real wages are stagnant. Unemployment is dropping based on technicalities in the calculations. Consumer spending is up only because people are dipping into their savings. The national debt is now larger than the U.S. economy, at 101.7 percent. GDP growth is about half its historic rate. And the federal government is printing money at will to keep inflation at bay. All these factors reflect what is becoming acceptable as the new and normal conditions of the U.S. economy. “These numbers bother me the most. There are gaps opening up in the economy,” Swanson said. “The politicians in Washington have to do something. In 2013, fiscal policy will be a drag on the economy.” Swanson, who had been at the UA for 43 years until he retired in December, also works as an economic analyst for public and private sector clients. On Tuesday (Jan. 29), he keynoted a real estate forecast by the local chapters of the Building Owners and Managers Association (BOMA) and Institute of Real Estate Management (IREM). Although the economy is in the doldrums, the good news is not exciting and the bad news is not dismal, he quipped. The national and local economy is growing, yet neither has full traction. Construction activity helped to lower overall unemployment rates. And national-

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

TUCSON REAL ESTATE

1/21/2013

1/14/2013

$140,000 5,150 372 437 161

$149,000 5,207 447 405 221

Source: Long Realty Research Center

Roger Yohem

As the economy recovers there is a ‘new normal’

Economist Gerald Swanson

ly, manufacturing improved due to a surge in exports, mostly car sales. “In terms of growth, we have been just awful. Our economy is just limping along, there is no magic bullet to fix it,” he said. A significant but overlooked negative condition that is part of the “new normal” economy is the FICA payroll tax. On Jan. 1, a temporary cut was allowed to expire that raised the rate 6.2 percent from 4.2 percent. For the average worker it was an $80 per month tax increase. “In 2012, this cuts $125 billion in takehome pay. That’s not a positive for consumer spending, consumer confidence or the economy,” said Swanson. To potentially offset that, private businesses are ready to hire and spend money. Profits are strong and some $2 trillion is stashed away in banks waiting to be invested. However, they are frozen until the federal government clarifies its fiscal policies regarding issues such as future tax rates, medical costs, and regulations. “Nothing happens until we see something from Washington. Until then, they wait and see,” Swanson said. In the category of property management, Swain Chapman, founder of Chapman Management Group, discussed the sector’s new paradigm. Large institutional players such as Goldman Sachs, Bank of America, Wells Fargo and even what’s left of Lehman Brothers, are moving into and dominating more of the market. “Wall Street recognizes them as an asset

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

Current

Last Week

1/29/2013

One 12 Month 12 Month Year Ago High Low

3.50% 3.625%APR 3.50% 3.625%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%

class. They are the next generation in our market. Highly sophisticated, well-trained,” Chapman said. To stay competitive, he urged property managers to embrace the changes and pursue additional credentials. For personnel doing building maintenace, raise the standards. Seek staff with engineering degrees and compliment your company’s depth with talent who hold advanced business and financial degrees. Barbi Reuter, associate broker for Picor Commercial Real Estate Services, gave an overview of the broad commercial sector. In 2012, “uncertainty shifted to stability. Pessimism shifted to optimism. And the fundamentals are firming very slowly.”

Real estate matters The Pima County Real Estate Research Council will host a “real estate matters” forum next Thursday (Feb. 7) that features Pima County Administrator Chuck Huckelberry and City of Tucson Assistant City Manager Albert Elias. They will be joined by a group of commercial real estate experts who will share their insights on the retail, land, office, multi-family/student housing, and new home/residential market sectors. The forum will be held at the Tucson Association of Realtors, 2445 N. Tucson Blvd. Registration is at 7:30 a.m. and the program begins at 8 a.m. Attendance is free to all members of the research council; nonmembers can attend one meeting for $50. Online registration is required at http:// pcrerc.com/events

Inside the stats Statistically, the region’s real estate market posted solid gains in almost every metric in 2012. In Sahuarita, average selling prices soared 34 percent. In Tucson, the median closing price racked up a 27 percent gain. In categories that fell, the declines were minor, according to a detailed analysis in the Coldwell Banker Residential Market Action Report. The company highlighted some key stats

about the Tucson region, using year-end 2011 as the baseline compared to year-end 2012: Tucson sector • Sales rose 4 percent to 10,630 homes from 10,219 • Days on market fell to 90 from 99 • Inventory fell 30 percent to 3,145 homes from 4,478; leaving 4½ months of supply • Median selling price gained 27 percent to $145,000 from $114,500 • Average selling price gained 17 percent to $186,460 from $159,117 • Average selling price per square foot rose to $98 from $81 Marana sector • Sales rose 6.5 percent to 508 homes from 477 • Days on market fell to 95 from 153 • Inventory fell 19 percent to 228 homes from 282, leaving 6.2 months of supply • Median selling price fell 7 percent to $160,000 from $171,450 • Average selling price gained 9.5 percent to $210,133 from $191,926 • Average selling price per square foot rose to $100 from $92 Sahuarita sector • Sales fell 7 percent to 506 homes from 545 • Days on market rose to 110 from 96 • Inventory fell 23 percent to 160 from 208; leaving 4.8 months of supply • Median selling price gained 24 percent to $143,000 from $115,000 • Average selling price gained 34 percent to $173,289 from $129,737 • Average selling price per square foot rose to $85 from $67 Oro Valley sector • Sales rose 17 percent to 706 from 603 • Days on market rose to 150 from 123 • Inventory fell 27 percent to 286 from 392; leaving 7.2 months of supply • Median selling price fell 3 percent to $220,000 from $227,500 • Average selling price gained 10 percent to $268,167 from $244,130 • Average selling price per square foot rose to $129 from $119

Sales and leases • WG Sahuarita Holdings LLC purchased two retail pads totaling 126,500 square feet within Madera Marketplace at the northeast corner of Interstate 19 and Nogales Highway, Sahuarita, for $575,000. The seller was Evergreen-Interstate 19 & Nogales LLC Whirlygig Properties, represented by Brenna Lacey and Dave Hammack, Volk Company. The buyer was selfrepresented and plans to build a Goodwill retail store at the site.

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


20 FEBRUARY 1, 2013

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Quality in education? I’ve got a few names This week I’m going to be a name dropper. I was at a reception in Phoenix at the beginning of the legislative session last month and ran into to state Sen. Linda Lopez. We’ve known each other since the days when we were both on school boards — she in Sunnyside and me in Catalina Foothills. At that same reception I saw Rep. Ethan Orr, who among things is a former DAVID HATFIELD freelance writer for Inside Tucson Business. As a newly elected legislator one of his first bills has to do with education — extending the K-12 school year to 200 days from 180. One of my long-time close friends is Robert Hendricks, who was superintendent in Flowing Wells Unified School District for 13 years before going over to the University of Arizona where he was an assistant dean in the College of Education. I’ve also had the privilege of knowing each of the subsequent superintendents at Flowing Wells — Philip Corkill, John Pedicone (now trying to work miracles as superintendent of Tucson Unified School District) and Nic Clement. David Baker, who will take over for Clement next school year, was an Inside Tucson Business Up & Comer two years ago. Speaking of Up & Comers, Nathan McCann, superintendent in the Altar Valley School District, was an honoree last year. (Should I mention here that nominations are open — online at www.InsideTucsonBusiness.com — until open until Feb. 18 for this year’s class of Up & Comers?) I’ve attended events with former Amphi Public Schools Superintendent Vicki Balentine, who retired last year. And I know Calvin Baker, who has been superintendent in Vail Unified since 1988, the longest tenured superintendent in the Tucson region. I still count Catalina Foothills’ Superintendent Mary Kamerzell as a friend. And when I hear talk of Arizona’s new Common Core Standards to be implemented in English Language Arts and Mathematics for the 2014-2015 school year, I think of Catalina Foothills’ Associate Superintendent Mary Jo Conery, who oversees the district’s curriculum and has been preparing for the new standards since the state Board of Education adopted them two years ago. There are untold numbers of educators across the Tucson region and Arizona who are doing remarkable things for our future leaders. This, despite the fact that in political discussions it has become de rigueur to toss off derisive comments about the failing state of education. The system is failing some children. If there’s one bad teacher in one classroom anywhere that’s one too many. I’m not necessarily talking money here, either. I get that it’s not good that Arizona was ranked No. 48 by the U.S. Census Bureau or dead last, No. 51, by the National Education Association in reports last year about the amount of spending per pupil on public education. On the other hand, Hawaii, ranked fairly high at No. 18 and Louisiana was No. 28 in the NEA and both those states have notoriously poor public education systems when measured by student performance. Money and performance don’t necessarily go hand in hand. Money will help, but before I listen to another person blindly slam a “failing education system,” I’m going to suggest that they spend time in the presence of some educators who are doing their part to deliver a quality product. I’ve got a few names to suggest.

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

EDITORIAL

Would you look at the calendar? It’s here. February. All things considered this is the single best month to be in Tucson. Tonight (Feb. 1) we could go out to Kino Sports Complex, 2500 E. Ajo Way, to see a Major League Soccer Spring Training match between Sporting KC (Kansas City) and the Portland Timbers or enjoy the glorious weather Saturday seeing either — or both — the San Jose Earthquakes-Colorado Rapids and Houston Dynamo-Vancouver Whitecaps compete. There’s also a soccer competition next week, including FC Tucson against the Portland Timbers at 11 a.m. Friday. But wait soccer fans, there’s more. The Desert Diamond Cup returns for a third year with matches Wednesdays and Saturdays Feb. 13-23 in which four MLS teams will compete — New England Revolution, New York Red Bulls, Real Salt Lake and Seattle Sounders toward a championship game at 6 p.m. Feb. 23 that will be televised live on the NBC Sports Network (formerly Versus). Starting Saturday, an estimated 50,000 people will start descending upon Tucson for the 59th annual Gem, Mineral and Fossil Showcase that will go through Feb. 17. What’s billed as “The World’s Largest Treasure Hunt” this year will feature 43 shows at 41 locations throughout the region stretching from the JW Marriott Starr Pass Resort in the Tucson Mountain foothills on the westside through downtown Tucson to the Doubletree Hotel Tucson-Reid Park, 445 S. Alvernon Way, and Viscount Suite Hotel, 4855 E. Broadway on the east side. And from the Westward Look Wyndham Grand Resort, 245 E. Ina Road on the north to the Holiday Inn Hotel, 4550 S. Palo Verde Road, and Tucson Expo Center, 3750 E. Irvington Road on the south. It could be fun seeking out a special gem. Most of the shows are free and open to the public, though several are wholesale only, requiring a special badge and a tax-exempt number for admission. For something you might not have seen before, check out a fossil of the world’s largest turtle — the

Protostega is 15½ feet long. It will be at the 22nd Street Mineral, Fossil & Gem Show, at the northeast corner of 22nd Street and Interstate 10, where they will also be displaying a 15-foot juvenile dinosaur fossil named Nanotyrannus. The family-owned 22nd Street show is open daily from 9 a.m. to 6 p.m. For longevity, you can’t beat La Fiesta de los Vaqueros Tucson Rodeo, which dates back to 1925 — 88 years ago. It more or less kicks off with a parade at 9 a.m. Feb. 21 starting at Park and Fair avenues, traveling south on Park to Irvington Road, then west on Irvington to Sixth Avenue, north on Sixth to the north entrance to the Tucson Rodeo Grounds, 4823 S. Sixth Ave. This year’s grand marshals are former U.S. Rep. Gabrielle Giffords and her husband, retired astronaut Mark Kelly. Thousands of people show up for the parade and about 55,000 go to the rodeo itself, which has events starting as early as Feb. 16 and runs through Feb. 24. Capping off the month is the World Golf Championships-Accenture Match Play Championship, where the world’s best 64 golfers compete for an $8 million purse Feb. 18-24 at the Ritz-Carlton Golf Club, Dove Mountain, 6501 W. Boulder Ridge Pass, Marana. This is an event that really shows off the Tucson region to the world — literally, TV coverage goes into 224 countries. Your friends suffering in frigid temperatures up north can watch 20 hours of live coverage on the Golf Channel plus another eight hours of the final weekend on NBC. While we can get out and enjoy being there in person — and in the process help the Tucson Conquistadores support youth athletics — on TV the course looks absolutely spectacular, almost like a set designed by Hollywood. The numbers crunchers tell us these events have a huge economic impact on this region. But sometimes you’ve just got to relish what we have. We’re lucky to be here. Especially in February.


InsideTucsonBusiness.com

FEBRUARY 1, 2013

21

OPINION BUSINESS INK

There is a prayer for a homebuilding comeback Home builders are an odd lot. Not all, but most. They keep odd hours, stress over the price of bathroom fart fans, roll their eyes at the antics of environmentalists, and like being “the” boss. They love local charities, tolerate NIMBYs, and hate impact fees. They work hard so they play hard. And when it comes to family, nothing gets in their way. They’re both the salt of the earth and salty characters. There’s a core group in this town that is deeply religious and others whose strongest faith is in their sales people. Like any business owner, they complain. Rants actually, about quirky regulations and the absurd financial risks they take. When construction is booming, they gripe that materials and land prices are too high. They can’t find enough workers. When times are tough, they complain they’re struggling just to survive. And sadly, the Great Recession of the past few years showed that was justified. So as 2013 shapes up as a “micro-boom” of sorts, let’s hope builders don’t relapse back into runaway speculation. A six-year slide in new single-family home construction ended last year. After free-falling from a peak of 11,800 permits, builders pulled 2,040 permits in 2012. In anticipation of a comeback, what is a sustainable pace through 2015? One that meets consumer demand, not profit goals?

Not what could be, but what should be built to avoid another housing bust? Marshall Vest, economist at the University of Arizona, focused on multi-family homes. With some ROGER YOHEM 4,000 apartments in the pipeline, “that will temper the need” for new single-family homes. Plus, household mobility remains low and local jobs “are barely growing. That will subdue household formation in the near term.” For 2013, Vest foresees about 2,800 permits; 4,000 in 2014; and 5,400 in 2015. Pete Herder of the Herder Companies said activity will be affected by: 1. Tight credit and larger down payments 2. Uncertainty in the local job market and national economy 3. Less retirement in-migration 4. Ongoing appraisal problems 5. Availability of finished, well-located lots Overall, supply-demand conditions “are in much better balance after several years of excess supply,” he said. Herder’s pace for 2013 is 2,500 permits; 3,200 for 2014; and 4,000 in 2015.

Will White, Tucson manager for Land Advisors Organization, said there is “substantial room to grow back to a healthy number” but the key is the availability of land. Although the market has made “big runs” historically after downturns, White is a bit conservative now. For 2013, White expects about 2,500 permits; 3,200 in 2014; and 3,700 in 2015. David Godlewski, president of the Southern Arizona Home Builders Association, zeroed in on the dynamics of supplydemand. Activity will be influenced by job creation, finished lot inventory and location, prices, resales, entitlement and development timelines, available workforce, and in-migration. Plus, the region has a track record of a costly and slow development review and approval process. “These factors, coupled with dwindling lot inventory, will keep the market from overheating,” he said. Through 2015, he sees modest 30 to 35 percent annual growth. Lucinda Smedley, a real estate consultant and coordinator of the University of Arizona’s Master in Real Estate Development program, has been told builders could have closed more homes in 2012, but didn’t have the resources to do so. Trades are thin and costs rising. Plus, builders are “pilfering good

employees from each other,” she said. Talented employees will not return here until the “good times” return for good. In a twist, she sees new opportunities for redeveloping single-family student rental homes near the campus that have suffered from deferred maintenance by out-of-state owners. Smedley favors a “prudent, gradual ramp-up” of 30 to 35 percent a year. For 2013, that is 2,700 permits; 3,500 to 3,750 in 2014; and 4,500 to 5,000 in 2015. Like I said, builders are an odd lot. Having worked for and with the industry for 20 years, I’ve witnessed their character during good times and bad. After the 2008 housing crash, many sought comfort in their faith. Insiders called it the Builders Prayer. In so many words it goes like this: Dear Heavenly Father: We pray that you will grant us just one more big housing boom. One that will wipe out all our debts, bring back jobs, and create another financial windfall for all. And this time, Lord, we promise not to piss it all away. Amen.

Contact Roger Yohem at ryohem@ azbiz.com or (520) 295-4254. His Business Ink appears biweekly and weighs in on local political, social and business issues.

GUEST OPINION

Character education is not enough to help poor kids The foster care system failed Sam miserably. There wasn’t a nurturing household in his long string of placements. He grew up on his own, got into trouble with the law, kicked around in odd jobs and found the community college where he turned his life around. Sam is 25, a big guy with a full smile who cares deeply about education and leading a meaningful life. Though he was sleeping in his car for a semester, he’s maintained strong grades, participates in student government, and works on campus as a tutor and in a summer program for middle school kids. Sam’s progress toward his associate degree has been stalled, however, because severe budget cuts forced his college to limit course offerings during the year and pretty much eliminate summer classes. Illness from when he was living in his car made it harder to concentrate — though he maintained a full load. There is an emerging opinion about poverty and the achievement gap that holds the U.S. can boost the academic success of poor people like Sam — and younger incarnations of Sam particularly — through psychological and educational interventions

MIKE ROSE

that will help them develop the qualities of personality or character needed to overcome their circumstances. These are qualities Sam displays in abundance: perseverance, self control, and belief

in one’s ability. No doubt these are powerful attributes, and they contribute mightily to a successful life, regardless of how old you are or where you sit on the socioeconomic ladder. But policymakers should be careful not to assume character education is the longawaited key to helping the poor overcome the assaults of poverty. My worry is that we will embrace programs that are essentially individual and technocratic fixes – mental conditioning for the poor – and abandon broader social policy aimed at poverty itself. Western cultural history affirms the qualities of persistence, self-discipline, and self-esteem, and they’ve been part of our

folk wisdom about success since well before Dale Carnegie made millions by promoting the power of positive thinking. But they’ve gained even greater luster through economic modeling, psychological studies and the technological advances of neuroscience. I have worked with economically and educationally disadvantaged children and adults for 40 years. Poor kids carry big burdens and have absurdly limited access to any kind of school-related enrichment, especially as inequality widens. But it is difficult for enrichment programs alone to lead to educational mobility. Children also need programs to address the conditions that devastate students’ lives: poor nutrition and healthcare, inadequate housing, parental unemployment, violent streets, and a dysfunctional immigration system. When we ignore these broader conditions, we turn an ungenerous scrutiny on the children themselves. Sam could be the poster boy for the advocates of character education; he possesses exactly the qualities they are trying to engender in young students. But what happens to Sam if after his Herculean

effort he leaves the college that has given his heretofore chaotic life structure and finds limited jobs, or none at all? What if he slams up against discrimination? What if he can’t afford to leave a neighborhood that has weighed on him for years? What if he gets in an accident or gets sick? Sam has been able to hold onto his dream with stunning tenacity, but what happens, in short, if the material world around him continues to threaten his drive and hope? Beyond that, is it fair or moral that a young person in the U.S. should have to expend superhuman effort to complete a standard, even basic, education that will in the end benefit both him and society? The exertion required of Sam becomes another measure of inequality. He’s traversing the achievement gap all right, but with a backpack full of lead and a head-splitting level of stress.

Mike Rose is a professor of education at UCLA. His most recent book is “Back to School: Why Everyone Deserves a Second Chance at Education.” He blogs at www. mikerosebooks.com.


22 FEBRUARY 1, 2013

INSIDE TUCSON BUSINESS

OPINION

SPEAKING OUT

Tucson’s young leaders include two inspiring 18 year-olds had strong opinions Honors such as Inside Tucson Business’ about the outcome. Up & Comers and 40 Under 40, which was However, she knew co-hosted by the Arizona Daily Star and a compromise was the Tucson Hispanic Chamber of Comin order. That’s what merce, make us all aware that there many happened. She feels outstanding young leaders who make some consumption Tucson a better place. goals should have In particular I was impressed with the been set. She says résumés of Madeline “Maddy” Bynes, a public education is University of Arizona freshman, and CAROL WEST needed about the Jazmyn Creason, a senior at Sahuarita High importance of School, two 18-year-olds who were 40 finding alternatives to the bags. Under 40 honorees in December. A political Bynes was science major at the employed until s BIZ FACTS University of recently at the Ward U Nominate Up & Comers Arizona, Bynes’ goal 2 Tucson City A Council office as an i Go to www.InsideTucsonBusiness.com is to graduate in four office assistant with yyears, forcing her to and click on the Up & Comers icon constituents. She ggive up her council office position. She researched issues for o attended the leadership program for Councilman Paul Cunningham, including teen-aged girls, “Running and Winning,” retail plastic bags. sponsored by the League of Women Voters Bynes said she learned much while and the American Association of University working on the plastic bag consumption Women. This opened her eyes to the many issue. She attended the citizen taskforce possibilities for her future, including public meetings that focused on possible changes speaking and running for office. She says to Tucson’s ordinance. She then realized she plans to run for public office some day. “we can’t do anything with the environBynes graduated from Empire High ment if we don’t consider the economy.” Because of her research on the issue, Bynes School and appreciated the close-knit

community in Vail. She has received superb mentoring and assistance from her classroom teachers and others. She wonders what she can do for Vail in return. She hopes to establish a college scholarship fund to help her friends aspire to a college degree. Jazmyn Creason was diagnosed at age 16 with a genetic disorder called Caroli disease, which damages the livers of its victims. It’s rare for a teenager to develop this incurable illness. She’s endured costly treatment at six different hospitals and had a liver transplant in 2010. Yet Creason remains amazingly resilient and positive. Creason and her mother, Lysa, wanted to give back because of the strong support they received during Jazmyn’s illness. Working with Jack Foote, chairman of Our Beautiful Savior Lutheran Charities, they have established Jazmyn’s Lunch Break. Jazmyn Creason acts as the official spokesperson for the program. She has spoken to countless Tucson organizations and recruited more than 100 volunteers to help. Jazmyn’s Lunch Break gives respite to families of young children who are hospitalized for a lengthy period at Diamond Children’s Hospital. Parents are hosted at a luncheon where they can relax and enjoy conversation and friendship away from the

hospital setting. Transportation to a nearby restaurant is arranged for them. Creason wants to do more to support the families and the children, so she has established a 501c3 non-profit called Jazmyn’s Journey, to raise funds for other projects. She sponsored a unique Halloween party for the young patients at Diamond Children’s Hospital. Last Mother’s Day, Creason organized special beauty shops on each floor of the hospital, with local beauticians volunteering their time for haircuts, manicures, and pedicures. She says she wants these programs to continue. Creason appreciates the fact that she lives because of a young accident victim whose family donated his liver for her transplant. She works with Donate Life Arizona promoting organ donations. In a year’s time, she inspired 3,000 people to sign up to be organ donors. Because of her phenomenal work for Donate Life Arizona, she was recognized as the Volunteer of the Year for the organization’s Tucson affiliate. It isn’t surprising that Jazmyn strongly believes it’s important to “always stay positive and keep your faith.”

LETTERS

best of Tucson. You reminded us that “together we thrive” is not just a phrase on a T-shirt, but a way forward. We know political and philosophical differences will always be with us. We know there will never be full agreement on the important public policy issues of the day. This is as it should be. Discussion and debate are an essential part of our representative form of government. This, after all, was why Congresswoman Giffords was out in front of that Safeway, meeting with her constituents just days after taking the oath of office. But in our community’s response to the

Jan. 8 shooting, Tucson has shown what we’re capable of. We’ve seen how a shared commitment to civil dialogue and active participation in our civic life can help build a stronger, healthier future. Tucson is a special place. We are united in the belief that the task of keeping special rests with us – not just on an anniversary remembrance, but all year long. On behalf of the January 8th Memorial Foundation Board of Directors and the survivors, families, supporters, and the emergency services and medical staff that we represent, thank you for joining us in this effort.

With grace and dignity, Tucsonans came together on Jan. 8 to commemorate the second anniversary of the tragedy that has left an indelible mark on our city. At gatherings large and small, we paused to remember the six people killed and 13 wounded at Congresswoman Gabrielle Giffords’ Congress on Your Corner. The January 8th Memorial Foundation would like to express our gratitude to everyone who participated in and helped organize these anniversary events. You – elected officials, community leaders and countless ordinary citizens – represent the

Thank you from Jan. 8 foundation To: Tucson FROM: Stephen Brigham, Ross Zimmerman, Darla Sidles, Eric Schindler, Ron Barber, Karen Christensen, Cheryl Horvath, C. J. Karamargin, Emma McMahon, Pamela Simon, Jim Tucker, Andrew Greenhill and Jodi McCloskey RE: January 8th

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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