Inside Tucson Business 2/8/13 by Territorial Newspapers

HARVARD OF THE WEST Prescott College celebrates 25 years in Tucson PAGE 20

Your Weeklyy Business JJournal ffor the Tucson Metro Area WWW.INSI WWW.INSIDETUCSONBUSINESS.COM SIIDE ETU T CSONBU BU US SIINE ES SS S.COM • F FEBRUARY EB BRU R ARY 8, 2013 • VOL. 22, NO. 37 • $ $1

Nothing to see here No surprises in county property valuations Page 3

State’s year-long centennial ends with 101st birthday Page 5

Audit clears county Review finds no problems with Pima bonds Page 6

Annual La Fiesta de los Vaqueros — Tucson Rodeo brings millions to local economy

Back in the saddle PAGE 10

Louise Serpa

A good century

Gladden Farms sold to New York developers By Roger Yohem Inside Tucson Business The last undeveloped parcels in the large Gladden Farms development in Marana have been acquired by Petrus Partners Ltd., New York. Pruchase price was not immediately disclosed. The acquisition includes 500 undeveloped residential lots in Gladden Farms Phase I and 2,345 entitled lots on 370 acres of residential land and 123 acres of commercial property in the Phase II section. Gladden Farms, located on Moore Road west of Interstate 10, was launched in 2003 by the Forest City Land Group, a subsidiary of Forest City Enterprises, Cleveland.

It was originally planned for 3,600 lots on 1,350 acres. Over the years, about 1,100 homes have been built by companies including Richmond American Homes, Lennar and Pulte. Much of the commercial land has been sold. “We plan to be the new master developer of the community. Petrus is really excited about our presence in Southern Arizona and the opportunities before us,” said Dean Wingert, the new top local executive for Petrus. For 26 years, Wingert oversaw the development of master-planned communities for Forest City in Tucson, Las Vegas, Denver, and five other western cities. With the closing of the Gladden Farms sale, he joined

Petrus as Vice President of Crown West Realty and will lead the new Crown West Land Group. Crown West is an affiliate owned by Petrus Partners. As head of the new land group, Wingert said he is looking for additional opportunities in Southern Arizona. “Developers are active, builders are strengthening, ready to buy platted lots. Some are market-ready, some land may be sold as is,” Wingert said. The sale was part of Forest City’s strategic plan to exit the land business to focus on its core strength of developing and owning large office, retail and mixed-use projects in urban areas. It was a national decision, not specific to Tucson or Arizona.

“As we sold projects off, Gladden Farms became this one key asset that had a long way to go and needed a buyer to step in,” he said. Petrus Partners and its Crown West Realty affiliate are real estate fund management and operating companies. One of Petrus’ specialties is investing in projects in distressed or recovering markets. Gladden Farms is the firm’s 13th residential land acquisition in Arizona. Wingert and his two-person staff will remain in their existing office at 333 E. Wetmore Road, Suite 250.

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

2 FEBRUARY 8, 2013

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FEBRUARY 8, 2013

NEWS

Hotel properties hit by higher tax valuations, otherwise few surprises By Roger Yohem Inside Tucson Business Every February, the tax man cometh in the form of property valuation notices from the Pima County Assessor’s Office. After analyzing the batch of notices sent out this month, James Wezelman, an attorney and owner of Sage Tax Group, found only a couple of shocking numbers. “Other than the hotel/resort category, there were few surprises. I’ve talked to many of their owners and property managers and they are still struggling. At best, they are treading water,” said Wezelman. The hotel sector was hit with an 8.4 percent average increase in property valuations. That is on top of a 17 percent increase a year ago. In recent years, the hospitality industry has been hit hard by the recession and several high-profile properties fell into foreclosure. For example, the Westin La Paloma Resort and Spa, 3800 E. Sunrise Drive, emerged from Chapter 11 bankruptcy reorganization in January 2012 with U.S. Bankruptcy Court Judge Eileen Hollowell approving a valuation of it and a companion resort, the Westin Hilton Head Island Resort in South Carolina, for a combined $92 million. That was less than 40 percent of the $240.5 million owed on the debt when the resorts were put into bankruptcy in November 2010. Other bankrupt/repossessed properties included the Doubletree Hotel at Reid Park, 445 S. Alvernon Way; La Posada Lodge at 5900 N. Oracle Road; and TownPlace Suites by Marriott at 405 W. Rudasill Road. Last December, ownership of the Hilton El Conquistador Golf and Tennis Resort, 10000 N. Oracle Road, Oro Valley, was taken back by its lender. And the JW Marriott Starr Pass Resort, 3800 W. Starr Pass Blvd., remains in receivership amidst legal wrangling. “Everyone, from the small hotels to the

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

A bankruptcy court judge last year agreed to reduce the combined value of the Westin La Paloma Resort and Spa, pictured, and a companion resort in South Carolina by 40 percent but overall, the Pima County Assessor’s Office this month increased the values of resort properies.

large resorts has experienced falling room rates and occupancy. We are very busy with those owners right now, getting calls about appeals,” Wezelman said. The tax notices issued this month form that basis for valuations, and ultimately property tax rates to be set in August 2014 for the 2014-2015 fiscal year. Overall, the county’s numbers reflect a stabilizing commercial real estate market since most average valuations rose per category. The valuations are derived largely from sales in 2012. In principle, Wezelman agrees the market is improving yet still expects to handle several hundred appeals this year. Only two categories lost valuation: land decreased 1.8 percent and office properties were down 0.1 percent. Classifications seeing higher increases were retail centers at 10.3 percent and bank properties at 7.5 percent. A year ago, those valuations were increased 8.7 percent and 3.4 percent respectively. Valuations for large apartment complexes “made a nice comeback” and increased 5.2 percent. Fast food properties increased 9.2 percent and traditional restaurants in-

creased 2 percent. Industrial properties were “up a reasonable” 1.3 percent, said Wezelman. Residential property valuations were flat in 13 of the county’s 22 geographic sectors, according to the assessor’s office. The biggest increase in the median price for single-family homes was 12 percent in the central business district. The other areas that saw increases were 5 percent or less, including southern Avra Valley area, north Tucson Mountain Foothills, Catalina Foothills, the near-northwest side and the Santa Rita Foothills. The biggest decrease in single-family home median value was 4 percent in Ajo. Decreases occurred in only two other areas, Midvale Park-Drexel Heights and Green Valley-Altar Valley, both of which were down 1 percent. Property owners who wish to appeal their valuations have until April 1 to do so. Instructions and a form are posted online at the assessor’s website, www.asr.co.pima.az.us .

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254.

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

RESEARCHER JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

LEGAL REPORTER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAVID MENDEZ dmendez@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

EDITORIAL INTERNS LAUREN SHORES ALEX WAINWRIGHT`

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.

Rosemont Copper gets air permit, needs one more The Arizona Department of Environmental Quality (ADEQ) has granted an air quality permit to Rosemont Copper — the seventh of eight major permits needed to open its proposed mine in the Santa Rita Mountains southeast of Tucson. The only permit remaining is one from the U.S. Army Corp of Engineers regarding the Clean Water Act, which the company says it expects to receive as part of the U.S. Forest Service’s final environmental impact statement. The Forest Service had initially put out a timetable saying it anticipated issuing its “record of decision” by the end of 2012 but in November that was postponed. Rosemont Copper has said it anticipates receiving that decision by the end of May. “Having received one of the last permits remaining represents a major achievement for the Rosemont Copper project as we near the end of the permitting process and prepare for construction this year,” said Gil Clausen, president and CEO of Augusta Resource Corporation, parent of Rosemont Copper. Gayle Hartmann, president of Save the Scenic Santa Ritas, which has been fighting the mine project, issued a statement saying her organization would examine the ADEQ permit to determine a next step, possibly an appeal. Augusta has been working for more than 7½ years on its proposal to open the Rosemont mine since acquiring the 2,760-acre site in June 2005 for $20.8 million.

U.S., Mexico close to accord on tomato imports The U.S. Department of Commerce has announced a proposed agreement to end a simmering dispute between U.S. growers and Mexico over tomatoes. If agreed to, the deal would set a new minimum wholesale price for fresh tomatoes imported from Mexico. Some U.S. growers have accused Mexican producers of selling fresh tomatoes at non-competitive low prices. The proposal would establish winter and summer prices among the categories of fresh tomatoes. Winter prices would range from 31 cents per pound to 59 cents per pound, and summer prices from 24.6 cents to 46.8 cents per pound. The current price is 21.6 cents in winter and 17.2 cents in summer.

EDITION INDEX Public Notices Lists Inside Media Meals and Entertainment Arts and Culture Profile Calendar

6 7-8 9 18 18 20 19

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

21 22 23 24 24 27

4 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

NEWS Saturday mail delivery to end on Aug. 5 The U.S. Postal Service is going ahead with plans to end Saturday mail delivery, which it says will result in a savings of $2 billion annually. Postmaster General Patrick R. Donahoe said Wednesday that the effort will curb losses that amounted to $15.9 billion last fiscal year. Under the plan, Saturday mail delivery will end Aug. 5, though the Postal Service will continue to deliver packages and Express Mail on Saturdays.

Flinn study: AZ biosciences sector outpacing nation Arizona’s bioscience sector has grown at nearly four times the national rate over the past decade and experienced double-digit job growth during the economic recovery, according to a new report by the Flinn Foundation. The report says that job growth in the biotech sector grew by 45 percent since 2012, compared with 12 percent average growth across the country. Hospitals account for 83 percent of the state’s biosciences and bio-tech industries. While jobs have grown consistently for the past decade, the report also shows that Venture capital investment declined. Venture capital investment was $22 million in 2012, which was the lowest figure since 2009. That amounted to a 68 percent decline from 2011, compared to a national decline of 49 percent. Bioscience-related academic research and development expenditures at Arizona’s universities reached a record $452 million in 2011, a 55 percent increase since 2002. Arizona’s growth had outpaced the nation until 2009, but now trails the overall U.S. growth rate of 74 percent. The Flinn Foundation is a Phoenix-based, private, nonprofit philanthropic endowment established by Dr. and Mrs. Robert S. Flinn in 1965.

10 days to nominate Up & Comers for honors The countdown is on — there are just 10 more days to submit nominations for this year’s class of Up & Comers, Inside Tucson Business’ annual recognition of people who, while still early in the careers, are already making a difference. Nominations are being taken online at www.InsideTucsonBusiness.com. Click on the Up & Comers icon to nominate. Nine honorees will be profiled in a special section in the April 12 issue of Inside Tucson Business and that will be followed by a reception later. This is the 11th year of the special recognition. Nominees should be under the age of 45 but people who already have had a significant impact in their careers or the community. The deadline for nominations is 5 p.m. Feb. 18.

Airport Authority survey seeks data for flights to Sonora By David Hatfield Inside Tucson Business In its ongoing pursuit of expanded airline service from Tucson International Airport, the Tucson Airport Authority is launching a pair of surveys to try to pinpoint what destinations in Sonora travelers most want to see. Tucson International has been without international airline service to Mexico since Aeromexico discontinued its flights to Hermosillo in October 2008. Aeromexico had operated at Tucson’s airport for 36 years. Mary Davis, senior director of business development and marketing, said the airport authority has been approached by the director of the airport at Puerto Peñasco, or Rocky Point, about ways the two airports could work together to attract airlines to fly between the two cities and other destinations in both Mexico and the U.S. A new international airport, Aeropuerto Internacional Mar de Cortés — Mar de Cortés International Airport-was opened at Rocky Point in September 2011 and although it routinely receives charter flights, it lacks regularly scheduled airline service. “As with any new program, the importance of market data cannot be overstated,” Davis said, adding that the U.S. Department of Transportation bars sharing of the historical data with foreign airlines and even if it could, market conditions have changed in recent years. Chris Baker, research director and a principal at Strongpoint Marketing, helped the airport authority develop the survey that seeks to identify travel demand between Tucson and destinations in Sonora. There are two surveys: one is focused on business travel and the other leisure and tourist travel. So far only the business survey is underway, though Davis said the leisure survey should start soon. Both will be online through February. A survey done nearly two years ago by the Southern Arizona Logistics Education Organization (SALEO) found that

BIZ FACTS

Take the survey at: https://survey.vovici.com/ se.ashx?s=0250EC9418CE5323

the top destinations in Mexico were Guaymas, Hermosillo, Ciudad Obregon and Rocky Point. With the data from the new survey, Davis said the airport authority “can have a better story to share with our airline partners as we meet with them at industry events, one-on-one meetings and at their headquarters.” New airline service to destinations in Mexico could qualify for incentives, including $75,000 in marketing and waivers of landing fees and customs facilities usage for a year. To qualify, the new air service

must be offered daily to a destination that has not had service for the past year. Overnight, or “red eye,” flights do not qualify. The incentives were approved by the airport authority’s board of directors in September 2011 but so far no airline has qualified for them. In addition to international destinations, other incentives are available to airlines initiating service to targeted domestic destinations, including the New York and Washington, D.C. areas as well as unserved destinations including those in California and Portland, Ore.

InsideTucsonBusiness.com

FEBRUARY 8, 2013

NEWS

The Arizona Experience is held over after Centennial year celebration

This Week’s

Good News

BIZ FACTS

California schemin’

The Arizona Experience

Tucson Regional Economic Opportunities (TREO) is stepping up its game to recruit more out-of-state companies. The scheme is to grab the attention of businesses fleeing tax-heavy and over-regulated California. As part of its new strategic plan, TREO hired a consultant to work in the California market, armed with a load of data showing that a move to the Tucson region can save businesses 30 to 40 percent in labor, general operating costs and taxes. In the past two years, about 400 companies have fled California in search of a better business climate. The ramped-up recruiting compliments TREO’s ramped-up retention work with existing local businesses, especially solar companies feeling economic pressures from overseas competitors.

The Montezuma Castle National Monument, above, from The Arizona Experience web page.

By Lee Allen Inside Tucson Business Next Thursday (Feb. 14), Arizona’s yearlong Centennial celebration will end on the state’s 101st birthday, but one adjunct of the past year will push forward into the future. Originally conceived as a physical museum in Phoenix to capture the state’s history and celebrate its people, the Arizona Experience never materialized due to lack of funding. Instead, it morphed into an interactive Web presence designed to tell the state’s story. “We jumped at the opportunity to undertake a really intriguing project,” said program coordinator Mike Conway of the Arizona Geological Survey. What resulted was not only a large — and growing larger — electronic source of information, but a multi-faceted retail destination in downtown Tucson that offers books, maps, and field guides to plan Arizona experiences, as well as the standard gifts and souvenirs to remember them. Project participants didn’t want it to be a one-and-done effort that flamed out at the end of the Centennial. Rather than having interested parties go to numerous sites looking for information about the state, Conway says he wanted audiences to think of the Arizona Experience as “the face of Arizona,” as it continues to develop new modules in different categories, all the while maintaining the synergy and keeping it user friendly. “We appeal to a variety of audiences,” Conway said. “Not only are we here to help Arizonans learn more about their state and

The Arizona Experience tells where to go and what to see (like this Cooper’s Hawk).

the resources available, we’re also trying to disseminate the information outside the state to show tourists where they can go and do really cool stuff.” As the program celebrates its first birthday, there’s a smooth-functioning search engine and 600 nodes to pluck away at, such as Sports & Recreation, or People & Culture, or Mining & Minerals. “The concept is to meld it all together, take a look back at the past 100 years — actually since we’re a geological survey, we’ve gone back 1.7 billion years — as well as focusing on development over the last century; where Arizona has been, is now, and will be in the future,” Conway said. The site has videos, 3D virtual tours, graphics, interactive maps, timelines, and oral histories that all work together to build a compelling narrative that tells Arizona’s story. “Our roll-out was slow, but the daily activity count has increased steadily with marked jumps every time we add a new node,” Conway said, noting that the latest addition, Native American Culture, was added in midJanuary. Randi Bellassai, marketing manager for the Geological Survey, said the gigabytes of data transmitted doubled from June to December. “More than half the U.S. visitors to the site are from states other than Arizona with nearly 20 percent of visitors from overseas,” said Director Lee Allison. “While we can’t tell how many of those online visitors actually showed up in person, it’s clear the website is drawing the attention of people looking for tourism opportunities in Arizona.”

Arizona Office of Tourism

Arizona Game & Fish Department

Lee Allison/Arizona Geological Survey

416 W. Congress St. (520) 770-3500 www.arizonaexperience.org Monday–Friday, 8 a.m.–5 p.m.

The BLM-managed sandstone labyrinth of Arivaipa Canyon near Mammoth.

Thanks to grant funding, the Arizona Experience is a low-cost revenue generator. “Despite the fact that we are state employees, there’s no state funding that goes into the project as we are underwritten by Freeport-McMoRan Copper & Gold through July,” said Conway. Grant proposals to other funding sources are currently under review. “We have something unique and cutting-edge here and we think there is strong interest in supporting the effort to push the envelope further to see just what we can do with the concept,” said Allison. “The Arizona Experience may even catalyze others to emulate our approach.” While the project is revenue-neutral as underwritten, efforts are being made to generate some income. A former Arizona Geological Survey store on the west end of downtown Tucson has been re-branded as the Arizona Experience Store and now acts as a modest revenue generator through the sale of books, topographical maps, rocks and minerals — and lottery tickets. While the Geological Survey as a whole has intentionally maintained a low profile — Conway says, “We do great work but we don’t brag about it” — the organization is beating the drum louder about the developing website. “It’s been incredibly exciting to see the overwhelmingly positive response to the Arizona Experience from both state residents and visitors from all over the world — a testament to the creativity that our team put into designing and building the site — and we’re eager for others to discover this great source of information about who we are and what we offer,” Conway said.

The Tucson

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

City Development Services gone rogue For years, the City of Tucson Planning and Development Services Department has irritated a number of businesses. As “customers,” business leaders say they’ve had issues with regulations and the whims of rogue inspectors. One of the latest to reach the ears of the Insider is about a small law firm that wanted to locate in mid-town. After finding a building that fit their needs, plans were submitted for a Certificate of Occupancy. The plans came back with two conditions: install bicycle racks in front of the building and a loading dock in back. Perplexed and irritated, the attorneys asked why the city thought it needed a loading dock. The response from Development Services was that the dock was required “in the event a future tenant might need it.” The law firm opted instead to open its office in unincorporated Pima County.

Kitt Peak saved? Cuts in federal spending that for more than a year threatened to shut down and remove the National Science Foundation’s (NSF) telescopes on Kitt Peak appear to have waned, thanks apparently to what one person knowledgeable about the situation said was “a certain who interceded.” Since neither of the offices of Arizona’s two senators, John McCain and Jeff Flake, seemed to know anything about it, we’ll have to guess as to who the senator might have been.

6 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

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.

Chapter 11 Business reorganization Eurofresh Inc., 26050 S. Eurofresh Ave., Willcox. Principal: Frank van Straalen, secretary. Estimated assets: More than $10 million to $50 million. Estimated liabilities: More than $50 million to $100 million. Largest creditor(s): Zona Acquisition Company LLC, San Antonio, Texas, $51,189,235.25; Biodynamics, Luxembourg City, Luxembourg, $5,111,884.00; Barclays, Santa Monica, Calif., $2,004,978.00; Southwest Gas Company, $1,507,816.44; John Christner Trucking, Sapulpa, Okla., $1,274,082.49; and Squire Sanders & Dempsey, Phoenix, $1,105,584.67. Case No. 4:13-bk-01125 filed Jan. 27. Law firm: Mesch Clark & Rothschild Steinhoff Enterprises LLC., 211 E. Florence Blvd., Casa Grande. Principal: Craig Steinhoff, managing member. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: $50,000 or less. Largest creditor(s): Schedule not filed. Case No. 4:13bk-01394 filed Jan. 31. Law firm: C.R. Hyde Maricopa Manor Business Center LLC, 19750-19756 N. John Wayne Parkway, Maricopa. Principal: Edward J. Farrell, managing member. Estimated assets: More than $1 million $10 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Schedule not filed. Case No. 4:13-bk-01437 filed Jan. 31. Law firm: Carmichael & Powell, Phoenix Aufmuth Inc., 3821 W. Costco Drive, Marana. Principal: David Aufmuth, CEO. Estimated assets: $50,000 or less. Estimated liabilities: $50,000 or less. Largest creditor(s): Schedule not filed. Case No. 4:13bk-01466 filed Feb. 1. Law firm: Eric Slocum Sparks Tucson Aviation Supply LLC, 1540 E. Wieding Road. Principal: Robert L. Reynolds, member. Estimated assets: More than $500,000 to $1 million. Estimated liabilities: More than $100,000 to $500,000. Largest creditor(s): Schedule not filed. Case No. 4:13-bk01495 filed Feb. 1. Law firm: Eric Slocum Sparks Aaron Cole Rubin and Jessica Marie Rubin, also known as Jessica M. Romero, 2625 E. Prince Road. Principal: Aaron Cole Rubin and Jessica Marie Rubin, joint debtors. Estimated assets: More than $100,000 to $1 million. Estimated liabilities: More than $100,000 to $1 million. Largest creditor(s): Schedule not filed. Case No. 4:13-bk01496 filed Feb. 1. Law firm: Thompson Krone Gibson

FORECLOSURE NOTICES No ﬁlings for businesses.

LIENS Federal tax liens Freeman Insurance Inc., 1392 S. Brush Canyon Drive. Amount owed: $5,731.50. Garcia Metal Products Inc., 4201 S. Randolph Way. Amount owed: $11,583.45. Bella Day Spa & Boutique and Sugar LLC, 1865 E. River Road, Suite 151. Amount owed: $3,451.48.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Venture N and Venture N Inc., 1239 N. Sixth Ave. Amount owed: $5,588.66. Dacor Remodeling LLC, 1600 N. Wilmot Road, Unit 266. Amount owed: $1,542.32. Canyon Oasis Landscape & Design, Richard Owens Landscape/Maintenance and Richard M. Owens, 9300 W. Floyd St. Amount owed: $9,907.43. Cattletown Steak House & Saloon and John R. Kocis and Cathy Kocis, 3141 E. Drexel Road. Amount owed: $23,848.88. Vistoso Golf Course LLC, 955 W. Vistoso Highlands Drive, Oro Valley. Amount owed: $14,313.77. Arizona National and IRI Sabino Springs Golf Course LLC, 11622 El Camino Real, Suite 1000, San Diego. Amount owed: $15,276.83. El Parador Tucson, 2744 E. Broadway. Amount owed: $2,490.39.

Shear Performance and Foothills Metro Salon Inc., 7401 N. La Cholla Blvd. #196. Amount owed: $1,060.91. Gallo Automotive and Transaxle Exchange Corp., 2208 N. Stone Ave. Amount owed: $2,407.31. JL&S Electrical Construction Inc., PO Box 515, Marana 85653. Amount owed: $5,995.48. Long Horn Grill and Santa Cruz Excavating Inc., 2034 W. Silver Place. Amount owed: $2,172.04. Amereno’s Little Italy and Bon Seba LLC, PO Box 32344, 85751. Amount owed: $6,745.31. Vistoso Golf Course LLC, 955 W. Vistoso Highlands Drive, Oro Valley. Amount owed: $4,899.36.

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

Robinson Custom Homes Inc., 13875 N. Kingair Drive, Oro Valley, against Robert Savin, 650 Vernon Ave., Glencoe, Ill. Property: 1620 (also known as 1603) W. Rock Range Place, Oro Valley. Amount owed: $22,975.00. Stephan Kipping, 1505 W. St. Mary’s Road, against Neb Yonas/Art Builders LLC. Property: 10887 Placita Marimba. Amount owed: $1,778.00. HD Supply Facilities Maintenance Ltd., 10641 Scripps Summit Court, San Diego, against Asset Campus Housing, 3131 E. 29th St., Suite D200, Bryan, Texas, and SCI Gateway at Tucson Fund 24, PO Box 4549, Carlsbad, Calif. 92018. Property: 2800 W. Broadway. Amount owed: $19,578.79.

Release of federal liens Temperature-Control Inc., 215 W. Lester St. WCS Electrical Contractor Inc., 5575 W. Oasis Road J.M. Scott Consulting Inc., 2614 N. Avenida Empalme Ace Health Care Services Inc., 1037 S. Alvernon Way, Suite 250 Rafael Tovar Rooﬁng Inc., 134 E. 25th St., South Tucson Johnny’s Cars & Trucks and Maria Del Socorro Valenzuela, 6429 S. Bright Sun Ave. Jose Landscape & Maintenance and Joel Vega Manriquez, 300 E. Vaquero Place Bird & Burky Concrete Contractors LLC and Larry Buckhard, PO Box 65563, 85728 5 Star Collision Center Inc., 3309 S. 12th Ave. Farwest Development & Construction of Southwest LLC, 2231 W. Ina Road Little Mexico Steakhouse Inc., 251 W. Valencia Road A Dream Come True Preschool and Lopez-Fierro Investments LLC, 6163 S. Midvale Park Road Roof Coating Specialist Inc., 8383 E. 22nd St. Chopstix Fine Asian Dining II LLC, 8225 N. Courtney Page Way, Suite 129, Marana Carniceria La Noria and Sanav & Associates LLC, 704 E. Prince Road Firebird Logistics & Storage LLC and Mark A. Espinoza, 2481 W. Poppy Ave. Seawater Foundation, 4230 E. Whittier St. Nordbrock Family Limited Partnership and Neil T. and Evelyn R. Nordbrock, 6642 E. Calle De San Alberto Daniel J. Rylander PC LLC, 2701 E. Speedway, Suite 203 Nueva Beneﬁts Group Inc., 7475 E. Broadway, Suite 101 Ace Health Care Services Inc., 1037 S. Alvernon Way, Suite 250 Rodeo Mechanical Inc., 3951 E. Michigan St., Suite 175 Maria’s Cafe and Manuel L. Canez and Joann A. Canez, 3530 S. Sixth Ave. VIP Parking Solutions and Steven Kahn, 41 S. Shannon Road, Apt. 19104

Release of state liens Whole Enchilada LLC, 4107 S. 12th Ave. MJ Dyno & Machine LLC, 3250 S. Dodge Blvd., Suite 6 Rock Roofing LLC, 6961 E. 42nd St. All Dry Roofing Inc., PO Box 42502, 85733 Laina Beach Permanent Makeup Center, 170 N. La Canada Drive, Green Valley Lai Lai Chinese Restaurant and Da Yiou Inc., 1341 F Ave., Douglas Law Offices Steven G. Sandoval PC, 177 N. Church Ave., Suite 625

Percent of property taxes burden versus completed bond projects

By Patrick McNamara Inside Tucson Business The results of a state audit of past Pima County bonds has confirmed what county said all along: There’s no problem with the bond program. The audit was prompted by the urging of Town of Marana officials, who lobbied state lawmakers to pass legislation calling for the state Auditor General’s office to investigate whether Pima County was spending money from general obligation bonds appropriately. The report was released last week and followed up with a public meeting on Feb. 1. “We found that the bond proceeds were being spent for the intended purposes,” said Jay Zsorey, financial audit director with the Arizona Auditor General’s office, after a months’ long review of thousands of pages of documents. Marana officials had concerns that their town had not received a proportional share of county bond projects and that funding for other projects was withheld. “Our argument was that for two major projects, the monies were held,” said Marana Mayor Ed Honea. Honea said a plan to include infrastructure improvements such as sewer and roads as part of a low-income housing project was never funded from bonds approved by voters in 2004. As a result the town also lost grant funding. “I’m not saying they (Pima County)

Chart: Arizona Auditor General/Alex Wainwright

BANKRUPTCIES

State auditors say Pima County bonds are OK

did anything illegal, I’m saying it’s unethical and it hurt a lot of people,” Honea said. County officials argued the proposed housing project would have created sewer-capacity issues. The other project that did not receive funding was a plan for 2004 bonds to pay for connecting the Marana Regional Airport to the county sewer system. The auditor general’s report said Marana received more than its share of projects with nearly 6 percent of completed projects versus the 4.7 percent of taxes collected to pay the bond debt. Honea said much of the reason for that had to do with county purchases of open space in rural areas of the town. Reaction from others included, real estate investor Don Diamond, who was at the Feb. 1 meeting and said, “I think Marana made a big mistake. Doing government that way is not the way I think we should govern.” Marana resident Dan Sullivan, who had been a member of the Pima County Bond Advisory Committee from 2003 to 2012, also was critical of Marana. “Nobody from the town ever came to any of the meetings,” Sullivan said, regarding the Bond Advisory Committee. Much of the decision making on bond packages are made in the committee prior to putting the question to the voters. Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

InsideTucsonBusiness.com

FEBRUARY 8, 2013

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FEBRUARY 8, 2013

Checking in with Gina Trunzo: ‘I’m doing fine, thanks’ By David Hatfield Inside Tucson Business A year ago this month, KOLD 13 took over the news programming of KMSB 11 under a shared services agreement and the light was shining bright for the future of Gina Trunzo, the highest profile talent to have made the switch. As it turned out, Trunzo’s tenure as a co-host of “Fox 11 Daybreak” only lasted until May when she took a medical leave and never returned. A year later, Trunzo says she doing fine now, thank you. “Everything happens for a

Gina Trunzo

ment for Oprah Winfrey, Couric’s show did manage to garner the highest ratings of any new daytime TV talk show launched last fall, but that’s not saying a whole lot. It was a bad year for new TV talk shows. This week it was announced that Couric’s show will continue for a second season but considering most stations bought it as a two-year deal, that’s not surprising. The fact that 5 percent of stations aren’t continuing for the second year is more telling. Moreover, the company hasn’t been able to announced any new stations. Meanwhile, two other daytime talk shows launched last fall got the word they won’t be going forward: “The Ricki Lake Show,” which has been airing on KVOA 4 and “Jeff Probst,” which has been on KGUN 9. Meanwhile at this year’s National Association of Television Program Executives (NATPE) conference in Miami, Fla., that ended Jan. 30, sales were rolling on more new talk shows, including one hosted by Queen Latifah and the late-night return of Arsenio Hall.

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reason,” she said. “I’m happily taking some time off.” She didn’t want to get into detail about the circumstances of her departure, saying it was a combination of her three-month-old marriage combined with the job changes and she’s happy it ended amicably. Trunzo said she’s now helping her husband, Dr. Richard Ziehmer, with marketing his orthodontics practice, Grinz, 7488 N. La Cholla Blvd., “which lets me exercise my creative side.” She also said she remains active in non-profits, including the Leukemia & Lymphoma Society, March of Dimes and the Joseph Blair Charity Group. “I was never in the media for the notoriety,” Trunzo said. “I always liked what I could do for others and the community.” She doesn’t rule out the possibility of returning to media, “If the right opportunity comes along.”

TV talk struggles Katie Couric may have scored a victory with her interview last month of Manti Te’o, the Notre Dame linebacker explaining how he was the target of a phony girlfriend hoax — something Tucson viewers didn’t see because Couric’s show doesn’t air here and it doesn’t look like it will any time soon. Once touted as the potential replace-

It figures in what could be the Tucson Padres’ final year, the team finally gets a high-profile radio home for play-by-play coverage of its games. Starting with the Triple-A team’s opener on the road April 4 at Salt Lake City, most of the games will be broadcast live on Cumulus Media’s The Source KCUB 1290-AM, the same all-sports station that is home to the University of Arizona Wildcats. Tim Hagerty, in his third season calling the games, will take to the air at 5:25 p.m., 10 minutes ahead of the scheduled first pitch. Whenever there’s a conflict with a UA game, the Padres broadcast will be delayed until after the Wildcats’ game. Last season, Padres games were broadcast by Clear Channel Media and Entertainment’s Tejano KXEW 1600-AM. The first year the team was in Tucson, it didn’t have a regular home for radio broadcasts. The team has been sold to an investor group in El Paso that is working feverishly with city officials there on a new downtown ballpark they hope will be home to the team starting in 2014. If that doesn’t happen, the Padres have an option with Pima County for another year at Kino Stadium, 2500 E. Ajo Way, where the team’s first home game this year will be at 7:05 p.m. April 12, a Friday night.

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

See

If you see water or dirt blowing into the air, or discolored vegetation surrounding a pipeline.

Leave the vicinity immediately and don’t use an automated door. From a safe place, call Southwest Gas at 1-800-722-4277 and 911 immediately, day or night. Don’t turn off or on any electric switches, thermostats, or appliance controls, or start or stop an engine— or do anything that might cause a spark. Don’t light matches or lighters.

www.swgasliving.com/safety

10 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

TOURISM TOURISM IN TUCSON

Surprisingly, it I have to confess. John Travolta is was tourism that responsible for my infatuation with rodeo. spurred the “Urban Cowboy” was the box-office creation of the blockbuster in 1980 when, coincidentally, I Tucson Rodeo, was relocating to Tucson from St. Louis. As now one of the top luck would have it, I landed a job as 25 professional marketing director at Old Tucson where the rodeos in North University of Arizona staged its inter-colleAmerica. The giate rodeos. There I became immersed brainchild of La into the world of the truly American sport. JOAN LEISS Fiesta de los Though event marketing campaigns often reflect trends, the 36-member Tucson Vaqueros, Leighton Kramer, was a transplanted Easterner who headed up the Rodeo Committee is steadfast when it Arizona Polo Association. comes to the messaging aimed at luring It’s no surprise that locals back in the visitors to La Fiesta de los Vaqueros, the early 1920s depended on tourism dollars, Tucson Rodeo. The common denominator in the success of the first rodeo in 1925, and too. But the visitor season fizzled out by the end of January leaving Tucson a virtual of every rodeo since, is the fascination ghost town. Kramer, real-life cowboy Ed people have with “The West.” Echols, and area dude ranch and hotel Gary Williams, general manager of the owners joined together and created a grand Tucson Rodeo, and a former rodeo bull rider himself, believes, “Rodeo gives people scheme to keep visitors around through February’s Washington’s Birthday holiday. a way of touching the West; seeing, feeling Two key elements contributed mightily and getting close to it. If visitors just want to the event’s success. First, with the to escape the cold, they can go to Florida blessing of appropriate officials, a two-day — this is The West, this is about cowboys.” school holiday was established so local On average, 38 percent of attendees to ranchers and residents could participate in the Tucson Rodeo come from outside the rodeo and the big Arizona with more than parade. Next, Kramer half visiting Tucson p BIZ FACTS specifically to attend the cconvinced Southern c Railroad to run rodeo. La Fiesta de los Vaqueros PPacifi “Tucson is the first big sspecial “rodeo” trains – Tucson Rodeo outdoor event of the Pro ffrom Los Angeles and El Feb. 16–24 Paso to Tucson — the Rodeo season,” explained P Tucson Rodeo Grounds occupancy was 100 Williams. “It’s a key stop o 4823. S. Sixth Ave. percent on every run. for cowboys and cowgirls p www.tucsonrodeo.com Bottom line, every working their way to the (520) 741-2233 Wrangler National Finals rranch and hotel was booked solid. To Rodeo and a welcome b accommodate the overflow, Southern break from indoor arenas for both contesPacific converted its stationary train cars tants and fans.” Sonora state in Mexico, with its ranching into sleepers and residents offered room and board in their homes. Tucson, with its and vaquero traditions, is a prime drive-in Celebration of the Cowboys, was on the market, along with Sierra Vista and other map as a prime tourist destination. Southern Arizona communities.

Louise Serpa

Every February for 88 years, Tucson is a cowboy town

From 2010’s rodeo, a bareback riding cowboy and his horse cast their shadow on the Tucson Rodeo ground in a photo by the late Louise Serpa.

While the tourism value of the Tucson Rodeo and Parade was established early on, many Southern Arizonans viewed the rodeo as a celebration of their own cowboy culture. Author and rancher J.P.S. Brown of Patagonia shared his memories of the first Tucson Rodeo he attended in the early 1930s in an article he penned for American Cowboy magazine. “I was there to watch my father and uncles compete and to have a look at my relatives. I was related to every Christian, pagan, Texan, and cowman in Southern Arizona. My whole world and the people in it depended on the rodeo,” Brown wrote. Hollywood also found Tucson an ideal film location when a scene called for rodeo action. Robert Mitchum tested broncs in the Tucson arena for the 1952 classic “The Lusty Men” and the rodeo was a backdrop for the 1953 movie “Arena.” The most successful of the rodeo-themed movies, “8 Seconds,” which depicted the life of the late bull rider Lane Frost, shot action scenes in Tucson in 1994. To the delight of the crowd, Tom Selleck did his own bronc riding in the Tucson Rodeo arena for the 1996 Showtime movie “Ruby Jean and Joe.”

Today, the quantified economic activity generated by visitors, 685 contestants, and more than 1,000 well-fed horses and bulls is worth $16 million to Tucson. When the weather cooperates, about 60,000 fans fill the grandstands at the Tucson Rodeo Grounds and the cheers for an eight-second bull ride can be heard all the way to Nogales. The recent additions of the Vaquero Club, a private pavilion with hosted food and beverages, and the skyboxstyle Gold Buckle boxes have upped the participation of local and regional businesses and groups. “The Pioneer Spirit lives. Heroic memories never die. The Old Frontier will be revived at Tucson as a community revival. We are proud to offer this attraction to the people of America as a glorious reminder of yesterday,” wrote Kramer on the rodeo’s opening day in 1925. The Tucson Rodeo Committee couldn’t have said it better.

Joan Liess is an independent marketing professional who has served as marketing director for the Tucson Rodeo since 1989.

InsideTucsonBusiness.com

FEBRUARY 8, 2013

12 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

GOOD BUSINESS PR CORNER

Nuances in meeting face-to-face can make tech talk work better

Move Over Textbooks. Classroom Technology Has Taken Over. Since 1892, Brown Mackie College has believed education should evolve to meet the needs of students and employers. Back then, that meant delivering a quality, career-focused education via pencils and paper. Today, it means we’re embracing tablet technology in our classrooms and beyond.

BrownMackie.edu Brown Mackie College is a system of over 25 schools located throughout North America. Programs, credential levels, technology, and scheduling options vary by school and are subject to change. See BMCprograms.info for program duration, tuition, fees and other costs, median debt, federal salary data, alumni success, and other important info. Apple, the Apple logo and iPad are trademarks of Apple Inc., registered in the U.S. and other countries.

BECAUSE WE NEED EACH OTHER Strong Kids Campaign

YMCA OF SOUTHERN ARIZONA When you give to the Y, you strengthen the community. As the nation’s leading nonprofit for youth development, healthy living and social responsibility, the Y uses your gift to make a meaningful lifelong impact. The Y gives everyone an opportunity to learn, grow and thrive.

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Having an opportunity to connect words with body language, eye contact, tone and inflexion and a myriad of clues to show the context of the message saves the potential for miscommunication. Emails, posts and tweets can be great time savers, but making and maintaining in-person connections, helps long-term professional and personal communications success. Whether it’s networking within your organization or cultivating new clients and connections in the community, face-to-face communications is a skill to practice and sustain. Networking experts know dozens of tips, strategies and techniques that can help people connect and build relationships in virtually any setting. Business people need to connect on a professional level and seamlessly build in information about their businesses and services. Start with the end in mind. If you are going to an event, ask yourself beforehand, who it is you want to meet and how you are going to strike up a conversation. If you are going to run a meeting, plan out what decisions need to be made and how you can identify a common vision for the outcome. If you are going to have a one-on-one conversation, think about what key messages you wish to convey. Just like the training for a presentation or media interview, never just “wing it” regardless of how comfortable you feel in the setting. Crystallize the topic knowledge you have that will be of interest to who you’ll be talking to. Knowledge, insight and expertise are what you exchange with others. The more you determine what you know and what you are passionate about, the more likely you are to truly connect with others. You will make a positive impact and make effective use of others’ time. One of the hardest face-to-face scenarios is to attend a meeting, function or event when you don’t know many of the people you’ll be meeting. How do you introduce yourself, then strike up a conversation and make a positive impression before moving on so you can meet others. Instead of leading with your job title, stay away from jargon and use the opportunity to explain what you do. Give a short recent example of a project you helped with. Those personal stories can provide excellent opportunities to connect with people. Fun stories are well received, especially when humor is involved. What can often be more important — and a great skill I learned as a reporter — is to find ways to engage others to talk about their work and what they are passionate about. In media, the best way to get the

facts is to ask questions. It’s variations on the: who, what, where, when, how and why. Look for conversation starters that require more than a simple yes or no answer. JAN HOWARD The best part of engaging in face-to-face communications is to learn from listening. While you have goals of what you hope to convey about yourself, focus first on others. When you ask a few questions up front to learn more, they’ll begin to ask questions back. Then you’ll have an opportunity to describe yourself and why you’re here. Little things can make a difference and sometimes the smallest detail can make the wrong impression — an impression you did not want to make. When you talk, make good eye contact, smile warmly, give a firm handshake and repeat the person’s name. Again, it’s the combination of words, tone and body language people notice and make you someone they want to stay connected with. These skills work in any setting and can be especially effective if you think you might be entering a potentially volatile environment. When you show you are genuinely interested in hearing what others have to say, you create an opportunity to identify what mutual interests and goals you share and how to achieve them. Remember your “ears and mouth” — you have two ears and one mouth because you should be spending most of your time listening. Face-to-face communications is about establishing a meaningful and mutually beneficial relationship. And, by knowing the person you are communicating with — from their sense of humor to their serious side — it enables more effective non face-to face interactions. That’s true whether it’s by email, LinkedIn or Google+.

Contact Jan Howard, APR, vice president of Strongpoint Marketing, at jan. howard@strongpointmarketing.com. Howard is the Western District representative of the Public Relations Society of America, Southern Arizona chapter, whose members write this monthly column.

InsideTucsonBusiness.com

FEBRUARY 8, 2013

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14 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

LEGAL NOTICE

To merchants who have accepted Visa and MasterCard at any time since January 1, 2004: Notice of a 6+ billion dollar class action settlement. Si desea leer este aviso en español, llámenos o visite nuestro sitio web. Notice of a class action settlement authorized by the U.S. District Court, Eastern District of New York. This notice is authorized by the Court to inform you about an agreement to settle a class action lawsuit that may affect you. The lawsuit claims that Visa and MasterCard, separately, and together with banks, violated antitrust laws and caused merchants to pay excessive fees for accepting Visa and MasterCard credit and debit cards, including by: Agreeing to set, apply, and enforce rules about merchant fees (called default interchange fees); Limiting what merchants could do to encourage their customers to use other forms of payment through, for example, charging customers an extra fee or offering discounts; and Continuing that conduct after Visa and MasterCard changed their corporate structures. The defendants say they have done nothing wrong. They say that their business practices are legal and the result of competition, and have beneﬁtted merchants and consumers. The Court has not decided who is right because the parties agreed to a settlement. On November 27, 2012, the Court gave preliminary approval to this settlement.

THE SETTLEMENT Under the settlement, Visa, MasterCard, and the bank defendants have agreed to make payments to two settlement funds: I]Z Äghi ^h V ¹8Vh] ;jcYº · V +#%* W^aa^dc fund that will pay valid claims of merchants that accepted Visa or MasterCard credit or debit cards at any time between January 1, 2004 and November 28, 2012. I]Z hZXdcY ^h Vc ¹>ciZgX]Vc\Z ;jcYº · Zhi^bViZY id WZ Veegdm^bViZan &#' W^aa^dc

· i]Vi l^aa WZ WVhZY dc V edgi^dc d[ i]Z interchange fees attributable to certain merchants that accept Visa or MasterCard credit cards for an eight-month “Interchange Period.” Additionally, the settlement changes some of the Visa and MasterCard rules applicable to merchants who accept their cards. This settlement creates two classes: A Cash Settlement Class (Rule 23(b) (3) Settlement Class), which includes all persons, businesses, and other entities that accepted any Visa or MasterCard cards in the U.S. at any time from January 1, 2004 to November 28, 2012, and A Rule Changes Settlement Class (Rule 23(b)(2) Settlement Class), which includes all persons, businesses, and entities that as of November 28, 2012 or in the future accept any Visa or MasterCard cards in the U.S.

WHAT MERCHANTS WILL GET FROM THE SETTLEMENT Every merchant in the Cash Settlement Class that files a valid claim will get money from i]Z +#%* Wâa^dc 8Vh] ;jcY! hjW_ZXi id V deduction (not to exceed 25% of the fund) to account for merchants who exclude themselves from the Cash Settlement Class. The value of each claim, where possible, will be based on the actual or estimated interchange fees attributable to the merchant’s MasterCard and Visa payment card transactions from January 1, 2004 to November 28, 2012. Payments to merchants who file valid claims for a portion of the Cash Fund will be based on: The money available to pay all claims, The total dollar value of all valid claims filed, The deduction described above not to exceed 25% of the Cash Settlement Fund, and The

cost

settlement

administration

and notice, money awarded to the class representatives, and attorneys’ fees and expenses all as approved by the Court. In addition, merchants in the Cash Settlement Class that accept Visa and MasterCard during the eight-month Interchange Period and file a valid claim will get money from the separate Interchange Fund, estimated to be Veegdm^bViZan &#' Wâa^dc# I]Z kVajZ d[ ZVX] claim, where possible, will be based on an estimate of one-tenth of 1% of the merchant’s Visa and MasterCard credit card dollar sales volume during that period. Payments to merchants who file valid claims for a portion of the Interchange Fund will be based on: The money available to pay all claims, The total dollar value of all valid claims filed, and The cost of settlement administration and notice, and any attorneys’ fees and expenses that may be approved by the Court. Attorneys’ fees and expenses and money awarded to the class representatives: For work done through final approval of the settlement by the district court, Class Counsel will ask the Court for attorneys’ fees in an amount that is a reasonable proportion of the Cash Settlement Fund, not to exceed 11.5% of i]Z 8Vh] HZiiaZbZci ;jcY d[ +#%* Wâa^dc VcY 11.5% of the Interchange Fund estimated to be &#' Wâa^dc id XdbeZchViZ Vaa d[ i]Z aVlnZgh and their law firms that have worked on the class case. For additional work to administer the settlement, distribute both funds, and through any appeals, Class Counsel may seek reimbursement at their normal hourly rates, not to exceed an additional 1% of the 8Vh] HZiiaZbZci ;jcY d[ +#%* Wâa^dc VcY an additional 1% of the Interchange Fund Zhi^bViZY id WZ &#' Wâa^dc# 8aVhh 8djchZa will also request reimbursement of their expenses (not including the administrative costs of settlement or notice), not to exceed )% bâa^dc VcY je id '%%!%%% eZg 8aVhh

w w w. P a y m e n t C a r d S e t t l e m e n t . c o m

InsideTucsonBusiness.com

FEBRUARY 8, 2013

Plaintiff in service awards for their efforts on behalf of the classes.

HOW

ASK

FOR

PAYMENT

To receive payment, merchants must ďŹ ll out a claim form. If the Court ďŹ nally approves the settlement, and you do not exclude yourself from the Cash Settlement Class, you will receive a claim form in the mail or by email. Or you may ask for one at: www. PaymentCardSettlement.com, or call: 1-800625-6440.

OTHER BENEFITS MERCHANTS

FOR

Merchants will beneďŹ t from changes to certain MasterCard and Visa rules, which will allow merchants to, among other things: Â&#x2122; Charge customers an extra fee if they pay with Visa or MasterCard credit cards, Â&#x2122; Offer discounts to customers who do not pay with Visa or MasterCard credit or debit cards, and Â&#x2122; Form buying groups that meet certain criteria to negotiate with Visa and MasterCard. Merchants that operate multiple businesses under different trade names or banners will also be able to accept Visa or MasterCard at fewer than all of the merchantâ&#x20AC;&#x2122;s trade names and banners.

LEGAL RIGHTS

AND

OPTIONS

Merchants who are included in this lawsuit have the legal rights and options explained below. You may: Â&#x161; <_b[ W YbW_c je Wia \eh fWoc[dj$ You will receive a claim form in the mail or email or ďŹ le online at: www.PaymentCardSettlement. com. Â&#x161; ;nYbkZ[ oekhi[b\ from the Cash Settlement Class (Rule 23(b)(3) Settlement Class). If you exclude yourself, you can sue the Defendants for damages based on alleged conduct occurring on or before November 27, 2012 on your own at your own expense, if you want to. If you exclude yourself, you will not get any money from this settlement. If you are a merchant and wish to exclude yourself, you must make a written request, place it in an envelope, and mail it with

postage prepaid and postmarked no later than CWo (." (&') to Class Administrator, Payment Card Interchange Fee Settlement, P.O. Box 2530, Portland, OR 97208-2530. The written request must be signed by a person authorized to do so and provide all of the following information: (1) the words â&#x20AC;&#x153;In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation,â&#x20AC;? (2) your full name, address, telephone number, and taxpayer identiďŹ cation number, (3) the merchant that wishes to be excluded from the Cash Settlement Class (Rule 23(b)(3) Settlement Class), and what position or authority you have to exclude the merchant, and (4) the business names, brand names, and addresses of any stores or sales locations whose sales the merchant desires to be excluded. Note: Oek YWddej X[ [nYbkZ[Z \hec j^[ Hkb[ 9^Wd][i I[jjb[c[dj 9bWii (Rule 23(b)(2) Settlement Class). Â&#x161; EX`[Yj je j^[ i[jjb[c[dj. The deadline to object is: CWo (." (&'). To learn how to object, see: www.PaymentCardSettlement.com or call 1-800-625-6440. Note: If you exclude yourself from the Cash Settlement Class you cannot object to the terms of that portion of the settlement. For more information about these rights and options, visit: www.PaymentCardSettlement.com.

COURT APPROVES FINAL SETTLEMENT

THE

Members of the Rule Changes Settlement Class are bound by the terms of this settlement. Members of the Cash Settlement Class, who do not exclude themselves by the deadline, are bound by the terms of this settlement whether or not they ďŹ le a claim for payment. Members of both classes release all claims against all released parties listed in the Settlement Agreement. The settlement will resolve and release any claims by merchants against Visa, MasterCard or other defendants that were or could have been alleged in the lawsuit, including any claims based on interchange or other fees, no-surcharge rules, no-discounting rules, honor-all-cards rules and other rules. The settlement will also resolve any merchant claims based upon the future effect of any Visa or MasterCard rules, as of November 27, 2012 and not to be modiďŹ ed pursuant to the

s INFO

settlement, the modiďŹ ed rules provided for in the settlement, or any other rules substantially similar to any such rules. The releases will not bar claims involving certain speciďŹ ed standard commercial disputes arising in the ordinary course of business. For more information on the release, see the settlement agreement at: www.PaymentCardSettlement.com.

THE COURT HEARING ABOUT THIS SETTLEMENT On September 12, 2013, there will be a Court hearing to decide whether to approve the proposed settlement, class counselsâ&#x20AC;&#x2122; requests for attorneysâ&#x20AC;&#x2122; fees and expenses, and awards for the class representatives. The hearing will take place at: United States District Court for the Eastern District of New York 225 Cadman Plaza Brooklyn, NY 11201 You do not have to go to the court hearing or hire an attorney. But you can if you want to, at your own cost. The Court has appointed the law ďŹ rms of Robins, Kaplan, Miller & Ciresi LLP, Berger & Montague, PC, and Robbins Geller Rudman & Dowd LLP to represent the Class (â&#x20AC;&#x153;Class Counselâ&#x20AC;?).

QUESTIONS? For more information about this case (In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, MDL 1720), you may: Call toll-free: 1-800-625-6440 Visit: www.PaymentCardSettlement.com Write to the Class Administrator: Payment Card Interchange Fee Settlement P.O. Box 2530 Portland, OR 97208-2530 Email: info@PaymentCardSettlement.com Please check www.PaymentCardSettlement.com for any updates relating to the settlement or the settlement approval process.

0AYMENT#ARD3ETTLEMENT COM

ce Managem o ur en s t Re

INSIDE TUCSON BUSINESS

ea Gr

m a

16 FEBRUARY 8, 2013

Tucson ter

Society fo r

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.

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Pima County to put $30.5M in tax liens up for auction Inside Tucson Business Pima County will put 13,450 delinquent tax liens up for sale in an annual auction where investors can bid on the amount of interest they’re willing to accept on the property taxes that are owed. These are liens on properties that are delinquent on tax payments from 2011 or earlier. A list of all 13,450 properties will be published Wednesday (Feb. 13) in The Daily Territorial, a sister publication to Inside Tucson Business. The total value of the liens this year is $30.5 million, down $4.8 million from last year. What will be printed in The Daily Territorial is the base tax that’s owed on a parcel, plus interest and penalties due through the end of this month. Bidding at the tax lien auction starts at an interest rate of 16 percent and goes down from there on hotly sought after properties. Investors do not purchase actual property but a certificate. If the property owner doesn’t make any payments toward the lien, after three years a certificate holder can apply to the court for a deed to the property. The tax lien certificates are sold by auction, this year starting at 8 a.m. Feb. 27, in the Board of Supervisors hearing room on the first floor of the Pima County Administration Building, 130 W. Congress St. The auction continues daily until all of the properties have been put up for auction. Liens are auctioned in the order in which they appear in the Feb. 13 Daily Territorial. Typical of an auction, it moves quickly, taking about 20 seconds per parcel. Pima County Treasurer Beth Ford advises anyone seeking to participate in the tax lien sale to thoroughly investigate the liens on parcels that are put up for sale and to be prepared. Additionally, participants are required to register with Ford’s office, 115 N. Church Ave. in the Old Courthouse. The cost is $20 and registrants will have to provide a tax identification or Social Security number and a completed W-9 form. Further, Internal Revenue Service regulations require that 31 percent of all proceeds be withheld for noncompliance or incorrect reporting of a tax identification number. From Pima County’s point of view, the annual tax lien sale brings in delinquent revenue it’s owed. Last year, 13,897 parcels were put up for sale at a total value of $35.5 million. Of those 4,393, or about 32 percent, were sold bringing in $11.1 million. That was down from the record set in 2011 when $12.5 million worth of tax lience certificates were sold. The 3.7 percent drop in the number of parcels with liens up for sale this year and the 13.6 percent drop in total value is indicative of the declining values that took place during the Great Recession. There are more than 450,000 parcels in Pima County. The county collects about $1 billion annually in property taxes.

InsideTucsonBusiness.com

FEBRUARY 8, 2013

SMALL BUSINESS SMALL BUSINESS

So how did Arizona get to this transaction privilege tax system? The data points that represent Arizona’s tax system have always been in plain sight. While each one by itself may raise an eyebrow at most, Arizona businesses continued to manage as instructed by their accountants to ensure their compliance. Gov. Jan Brewer created a Transaction Privilege Tax (TPT) Task Force last year by executive order and the group issued its report in December and with it, finally connected the data points. The result was a huge red flag bringing to light just how bad and complex the Arizona sales tax system is. Many people I have spoken with admit they had previously not heard or bothered to remember the term transaction privilege tax. We’ve all heard it now, and it has become one of the major issues of discussion and debate at the Legislature. In the meantime, nobody is defending the current tax system for efficiency. Most agree it creates many compliance challenges for businesses and that reform is necessary, As was been pointed out in the TPT Task Force report, Arizona doesn’t have a true sales tax. “A sales tax is a tax on the retail sales of goods and services and is the legal obligation of purchasers or consumers. These taxes are collected by sellers as agents of the taxing authority,” the report says. “By contrast, Arizona’s TPT is a tax on the ‘privilege’ of engaging in business in the state. The liability for the tax is on the seller/vendor, who may choose to pass the tax on to the purchaser.” The Arizona Department of Revenue manages a program to help the state, counties and 73 of 91 cities administer a TPT. One of the major proposals for simplification is for a single source to administer the TPT on behalf of the state, all counties and all municipalities. There are 18 cities, including Tucson, that manage their own TPT, requiring businesses with locations in multiple municipalities to comply with different tax bases, tax returns, audits, and interpretations of the tax code. The other major proposal, and perhaps more challenging, is the sales tax on contracting, also referred to as “Prime Contracting.” Many municipalities across Arizona have used impact fees as a major source of revenue, especially during the housing boom. In contracts, most other states collect sales taxes from the contractor

when they purchase building materials and the contractor is then the ultimate consumer of those materials. The fact that many city taxes on contractors, JERRY BUSTAMANTE owner-builders and speculative builders differ from Arizona sales tax laws makes it difficult to determine which activities are subject to tax. The Arizona Department of Revenue estimates that 31 percent of contracting activities are noncompliant, resulting in significant revenue losses. The proposal on prime contracting is to transition from the current practice to a “tax on materials at the point of sale.” This proposal appears to have unified municipalties that are very much opposed to it. So how did Arizona get to this point in the first place? Historically, the state and municipalities have relied on the TPT as a stable source of revenue. There are currently 16 business categories that are taxed, such as retail, lodging and utilities. Income and property taxes can also be raised to increase revenues but just the suggestion can end a political career. Instead, it is much easier to ask voters to approve new categories for taxes, such as the temporary 1 percent sales tax that was approved as Proposition 100 in 2010 and is due to go away after Mary 31. Over time, with one election after another, and with the creation of various taxing authorities, Arizona has grown this unique and complex system called the transaction privilege tax. The time to fix and reform this antiquated piecemeal system of taxation has arrived. Lawmakers have introduced bills in this year’s session. Please take the time to follow the issue and don’t hesitate to let your lawmakers know your opinions on what’s being proposed.

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18 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ON THE MENU

ARTS & CULTURE

An offer for Tucsonans to be put out to pasture for dinner

Busy calendar: play opening, chamber music, film

The menu will feature grass-fed beef To foodies, the word “local” has now sourced from cattle raised on the very become part of our everyday vocabulary, grounds where guests themselves will dine, and you’re seeing it more on Tucson as well as pork from locally sourced hogs. menus, from pizza joints to upscale Local cheeses, breads, butter restaurants. As the “farm-toand produce will also take center table” movement continues stage as well as wine from Dos some chefs are enjoying a Cabezas Winery in Sonoita. friendly competition among Ranch tours will be available and themselves for which restaudinner guests will be entertained rants offer the shortest distance by a local bluegrass band. between the source and the Schwennesen tells me the center of what’s on their plates. dining tables will be set up right Several ranches and farms in in the open pasture, bringing his Southern Arizona are supplying resident cattle, and potentially beef, pork and other proteins to his neighboring quail, deer and area restaurants, but the MATT RUSSELL rabbits, into full view. shortest distance I have “Sharing our ranch with encountered from farm-to-table wildlife is an important part of the balance, is not measured in miles. Frankly, a and managing the land well can restore the yardstick may be all you’ll need. biodiversity that our landscapes are losing,” Shall we say, “table-to-farm?” he says. Double Check Ranch, in the Lower San Dinner tickets are $85 per person, Pedro River Valley about an hour north of Tucson at 4965 N. Camino Rio near Winkel- all-inclusive. After Feb. 19, the price goes up to $110. For those electing to leave the man, has supplied grass-fed beef to a driving to someone else, roundtrip shuttle number of Tucson restaurants, including transportation is available for an additional Hacienda del Sol, Lodge on the Desert and $25 per person. Buy tickets at www. Social House Kitchen & Pub. In addition to DoubleCheckRanch.com. bringing the bounty of its farm to Tucson While it surely isn’t my time to be put tables, it will soon bring tables to the farm, out to pasture, I may have to make an with a pasture dinner to be held al fresco at exception on March 16. the ranch on March 16. “Great food does not have to be tied to a FedEx account,” said Paul Schwennesen, Contact Matt Russell, whose day job is owner of the Double Check Ranch. CEO of Russell Public Communications, at “Enjoying food at the place where it mrussell@russellpublic.com. Russell is also actually comes from is a unique way to the host of “On the Menu Live” that airs 4-5 appreciate the distinct terrior of the land, p.m. Saturdays on KNST 97.1-FM/790-AM and in Southern Arizona, we have some and does the Weekend Watch segment of the truly world-class food.” “Buckmaster Show” from noon-1 p.m. Fridays Billed as a “Beyond Organic Pasture on KVOI 1030-AM. Dinner,” the event from 2 to 8 p.m. includes a six-course meal prepared by Chef John Hall, formerly of Sonoita’s Canela Bistro.

“First Kisses,” a play exploring the more concert of works by composers Joseph Haydn, Ludwig van Beethoven, Wolfgang than 60-year relationship, from age 11 to 72, and love story of a couple who share the Mozart, Franz Schubert, Billy Strayhorn, Chick Corea and Wynton Marsalis — each same birthday and were born in the same of the two concerts has a town is having its Arizona different program. The concerts premiere on stage at Invisible are being staged by the Arizona Theatre, 1400 N. First Ave. The Friends of Chamber Music and play explores the couple’s first will be at 7:30 p.m. Wednesday kiss, love, marriage, birth, death and 3 p.m. Thursday in the Leo and grandparenthood. It opens Rich Theater in the Tucson Tuesday (Feb. 12) and perforConvention Center complex, 260 mances continue nightly S. Church Ave. Tickets are $31 or Wednesdays through Saturdays $11 for students. Buy them with matinees on Sundays online at www.arizonachamberthrough March 3. General music.org or (520) 577-3769. admission tickets are $28 each. HERB STRATFORD Buy them online through www. invisibletheatre.com or the box office (520) 882-9721. Films opening this week include the acclaimed and Academy Award-nominated French movie “Amour,” which looks at the Two chamber music events are coming up. end of life and love between a longtime couple; the comedy “Identity Thief” First, there will be three concert performances this weekend of works by Gioachino starring Melissa McCarthy and Jason Rossini and Dominick Argento featuring the Bateman; and “Side Effects” with Rooney Mara, Channing Tatum and Jude Law Tucson Chamber Artists’ chorus and guest about some bad prescription drug effects. conductor Philip Brunelle, founding At the Loft Cinema, 3233 E. Speedway, conductor of nationally acclaimed VocalEssthe next chapter in director Michael ence and a frequent collaborator with Garrison Keillor, with four solo artists from Apted’s “Up” series debuts this weekend. Titled “56 Up,” the documentary continues Minnesota; soprano Maria Jette, alto Lisa to track a group of British children that Drew, tenor Dan Dressen, and baritone Michael Jorgensen. Performances will be at Apted has been following for decades. 8 tonight (Feb. 8) at Catalina Foothills High School, 4300 E. Sunrise Drive; 7:30 p.m. Saturday at Our Saviour’s Lutheran Church, Contact Herb Stratford at herb@ 1200 N. Campbell Ave., and 3 p.m. Sunday at ArtsandCultureGuy.com. Stratford teaches Desert Hills Lutheran Church, 2150 S. Arts Management at the University of Arizona. His Camino Del Sol, Green Valley. Tickets are column appears weekly in Inside Tucson Business. $20 or $30. Buy them online at www.tucsonchamberartists.org. Next Wednesday and Thursday (Feb. 13 and 14) the Harlem Quartet will perform a

Film

Music

InsideTucsonBusiness.com

FEBRUARY 8, 2013

CALENDAR SPECIAL EVENTS

Building a Diverse and Vibrant Community Award Dinner Saturday (Feb. 9) 6:15 to 9 p.m. Westin La Paloma Resort & Spa 2800 E. Sunrise Drive Contact: Naomi Weiner director@ aifltucson.org (520).322.9544 www.aifltucson.org Proceeds from this dinner event will benefit the Arizona Israel Friendship League Bioethics and Medical Ethics Expert Dr. Norman Fost Lecture Monday (Feb. 11) 12 to 1 p.m. Arizona Health Sciences Library 1501 N. Campbell Avenue Info: Jeanette Ryan jlr@ahsl. arizona.edu (520) 626-6143 Norman Fost, MD, MPH, will present a free

lecture, open to the public. The lecture is in conjunction with the national traveling exhibition, “Deadly Medicine: Creating the Master Race.” Maximize Your Direct Mail Muscle: Links into Lists, Leads and More Tuesday (Feb. 12) 11:30 a.m. to 12:30 p.m. The Tucson Metro Chamber 465 W. St. Mary’s Road A Business Growth Series Workshop presented by Tom Farmer of the Pima County Public Library and Dawn Vandaveer of Prototypes. Contact: Shirley Wilka swilka@tucsonchamber.org (520) 792-2250 ext. 132 $10/person; non-members: $20/person tucsonchamber.org

11:30 a.m. to 1:00 p.m. Viscount Suite Hotel, 4855 E. Broadway RSVP by Feb. 19 to rsvp@saleo.org or (520) 977-3626 Cost: $25 ﬁrst-time visitors & members; $10 students; others $30

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

REGULAR MEETINGS

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

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

Southern AZ Logistics Education Org. (SALEO) luncheon The Sun Corridor Freight Framework Study Wednesday (Feb. 20)

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20 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

PROFILE

Prescott College marks 25 years filling an educational niche

Lee Allen/ARIZONA FREELANCE

By Lee Allen Inside Tucson Business From the tall pines of Central Arizona to the desert scrub of Southern Arizona, Prescott College is “Making a Difference in a Changing World” as the Tucson facility celebrates 25 years. Ballyhooed as “The Harvard of the West” when it began in Prescott in the 1960s, the Ford Foundation Fund pulled together thinkers to imagine a new type of school and a new approach to education to ready its students to meet society’s challenges. The concept was later expanded to Tucson as the Center for Southwest Studies, then later rebranded as Prescott College - Tucson Center. “We are first and foremost, very expeBIZ FACTS riential,” says Director Suzanne Dhruv. Prescott College-Tucson “Because we live in a 2233 E. Speedway digital age, our instruction is a hybrid www.prescott.edu of online, in class, and 1-888-797-4680 out in the community. Our adult learners have electronic study opportunities from almost any part of the world with colloquiums at our main campus and smaller classes in Tucson. We think our method of presentation, as well as our subject matter, makes us unique in our focus around liberal arts, the environment, and social justice. ” Prescott College’s curriculum emphasizes the experiential with a focus on field research. Biologists, geologists, and anthropologists began a center of study that evolved into the field of significant environmental issues that ultimately tied into social issues. “We’re not trying to be all-things-to-allPrescott College - Tucson Director Suzanne Dhruv (and office mascot, Daisy) take a break from people, just a broad-brush approach that their unique academic schedule. looks at big spheres of influence and how they affect the social fabric,” Dhruv said. The college thinks of itself as a new educational paradigm to address contemporary issues facing society. With a vision of graduating leaders for the 21st century who can help solve growing environmental and social problems, school publicity promises “the tradition of educating with ethics, vision, and sensitivity supports our students as they become leaders that are needed now and will be in the decades to come.” A pretty tall order — but manageable according to Dhruv. “Classes are non-traditional in that you don’t come to a class to sit and listen to one expert lecture. That’s a part of it, but in addition you’re out in the community in

a service capacity and through that work, you learn and get credit for it. We have academia in the truest sense of the word in small classroom setting or on-line, but you also have an on-the-job capability that’s more flexible for adult learning.” The main facility in Prescott has about 700 students in a traditional campus environment. In Tucson the adult degree program has about 70 students at its facility at 2233 E. Speedway. “There is no composite student here,” says Dhruv. “We have students ranging from their early 20s to those in their mid-50s.” Some bring with them undergraduate college credit to finish their degree while others are accepted and given credit for “life experience;” perhaps someone involved for decades with plants, a person without official credentials, but life-long learning that can be translatable to credits. “Some students have worked for years in a passionless corporate business environment, but have always wanted to work for social services to better society and we allow them to use their life experiences to start a new career,” Dhruv said. “We also work with a lot of community partners in Sponsored Programs, additional offerings like The Ironwood Tree Experience that serves teens and cultivates a thinker active in the community and learning experientially, doing something to improve the environment, liberal arts, humanities, or social issues.” Included in the ranks of Prescott College graduates are ethnobotonist Gary Nabhan, director of the Amerind Foundation John Ware, and environmental conservationist and author Craig Child. “Some of the early students in our anthropology program have gone on to receive their PhDs and become professors at other schools,” according to Dhruv. So what’s next for the college’s particular niche? “Where we go from here is still based on our original reasons for establishing the school,” Dhruv said. “We in the Sonoran Desert have great opportunities for environmental and conservation education and sustainability, so we want to continue to have that presence. And living close to the border, we want our students to be a part of those conversations involving social justice issues. We invite people to share their passion for building a better world where each of us plays a significant role. We want our learners to not just take in information and make lifestyle changes for themselves, but to share them with the community.”

LOG ON TODAY! www.InsideTucsonBusiness.com

InsideTucsonBusiness.com

FEBRUARY 8, 2013

BRIEFS GET ON THE LIST

BIOTECHNOLOGY

Next up: Event planners, Convention and meeting facilities, Caterers

SynCardia ranks among top 100 ‘most promising’

Now that the 2013 Book of Lists is out, work is underway gathering data for the 2014 edition. Upcoming lists are: • 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 • March 8: Environmental resources, Recycling firms, Janitorial services, Pest control companies 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.

Artificial heart maker SynCardia Systems was named among the top 100 most promising, privately-held, high-growth companies in the U.S., by Forbes. It was one of two Arizona companies to make the second annual list. The other was Inilex, a Phoenix company that provides vehicle anti-theft devices under the brand name SkyLink. SynCardia Systems, headquartered at 1992 E. Silverlake Road, was ranked No. 69 on the list. It manufacturers what is still the only Total Artifical Heart approved by the U.S. Food and Drug Administration, Health Canada and CE in Europe.

RETAIL

Dobbs to be rebranded as AutoNation Honda Tucson’s Dobbs Honda will be rebranded AutoNation Honda as part of plans announced by the largest auto retailing group in the U.S. to organize most of its dealerships under a single unifying name. All of the dealerships, including the Honda dealership at 810 W. Wetmore Road in the Tucson Auto Mall, will be changed over by June, according to the company.

Not all of the company’s dealerships will be rebranded. BMW Tucson, 855 W. Wetmore Road, and other dealerships owned by AutoNation selling premium brand vehicles will continue to operate under their existing names. The rebranding will involve about 80 percent of its 264 locations in 17 states. AutoNation says this is the first time one company has operated all of its dealerships from coast-to-coast under one unifying name. Dobbs Honda opened in 1994 as part of a chain of dealerships headquartered in Memphis, Tenn. In February 1998, the chain was acquired by Republic Industries, which later that year changed its name to AutoNation and is now headquartered in Fort Lauderdale, Fla.

ployer, Desert Community College District in Palm Desert, Calif., had been investigated for inflating student enrollment figures. The incidents happened during the time Sheehan was president of the college. Following an audit by the State of California, the school was ordered to repay more than $5.2 million. Pima officials have since fired the consulting firm it was using in the search, R.H. Perry & Associates, based in Washington, D.C. PCC had already paid the firm $39,000 for the work it had done. Pima College had hoped to find a new chancellor by July to replace Ray Flores, who hastened his retirement last year.

EDUCATION/RESEARCH

IN MEMORIAM

Pima College to restart search for chancellor

Famed horse breeder ‘Bazy’ Tankersley dies

Pima Community College will restart its search to find a new chancellor after one of the top candidates the college had selected for the job dropped out amid reports of irregularities at a previous institution. Pima College officials had announced that it had two finalist candidates: Terrence Burgess, president of San Diego City College, and Maria Sheehan, president of Truckee Meadows Community College in Reno, Nev. But Sheehan withdrew her name after media reports surfaced that a former em-

Ruth “Bazy” Tankersley, owner of AlMarah Horse Farm, died peacefully at her Tucson home home Feb. 5. She was 91. A socialite of the McCormick family in Chicago, Tankersley originally came to Tucson in the early 1940s. Tankersley was the subject of Mary Levy Peachin’s monthly Remebering Tucson column published Aug. 3, 2012. A memorial service for is scheduled for 1:30 p.m. Feb. 25 at St. Alban’s Episcopal Church, 3738 N. Old Sabino Canyon Road.

PEOPLE IN ACTION NEW HIRES Simply Bits has announced that Alan Michaels, longtime Tucson radio personality, has been hired as a senior sales representative. Michaels has worked as operations manager for KWFM, hosted a morning show on COOL 1450, and has also worked with Jim Click Automotive. Rick Kelley has been hired as a senior financial advisor at the investment advisory and tax planning firm of Raskob Kambourian. Kelley is a licensed Certified Financial Planner and a Chartered Mutual Fund Counselor. Kelley was president of the local Financial Planning Association from 2006 to 2009. He is a member of the Financial Planning Assoc. and the Southern AZ Estate Planning Council. RDO Equipment Co. has hired Bill Hitchcock as a store manager. Hitchcock has nearly 25 years of dealership experience,

FELLOWSHIPS

including 20 years in several management roles at Caterpillar dealers across the Northeast. Most recently, Hitchcock was a sales manager for a New York Caterpillar dealer. Melissa Lal, CCIM has joined the leasing team at Larsen Baker. Lal joined Larsen Baker LLC in 2008 and most recently held the position of senior property manager. Lal earned her CCIM Designation from the CCIM Institute in 2011. EXPANSIONS Brenda Griffin, a licensed aesthetician who owns Faces Plus, expanded recently by opening Faces Plus Skin Care and Acne Clinic. It is Tucson’s only acne clinic, specializing in helping acne sufferers clear their skin. Griffin specializes in treating all kinds of acne. Griffin obtained certification from Face Reality Acne Clinic, based in San Leandro, Calif.

ALAN MICHALES

BILL HITCHCOCK

PAM BRUME

AWARDS

{YOUR NAME HERE} Pima County’s public health director, Francisco A.R. García, has been named one of the Best Doctors in America for 2013. García started with Pima County earlier this month. He, specializes in cervical cancer prevention and practices at the University of Arizona Medical Center – South Campus. He attended medical school at the University of Arizona and holds a master’s degree in public health from Johns Hopkins University. This recognition marks the third time García has earned this honor.

To announce a professional promotion, appointment, election, new hire or other company personnel actions. Attention: People; or email submissions to pmcnamara@azbiz.com. Include an attached photo at 300 dpi. Marana Police Department officer Pam Brume is an honoree for the Sons of the American Revolution Outstanding Law Enforcement Officers of Southern Arizona for 2012. Brume has been with the Marana Police Department for four years. The Sons of the American Revolution is a historical, educational and patriotic non-profit organization that seeks to

maintain and extend the institutions of American freedom, an appreciation for patriotism, a respect for national symbols, the value of citizenship and the creation of one nation and one people from many nations. ELECTIONS The Tucson Utility Contractors Association (TUCA) has announced its

FRANCISCO MORENO

officers for the 2013 year. The new officers are Board President, Ryan Mackey, Sunland Asphalt; Board First Vice President, Chris Rogers, Granite Construction; Board Second Vice President, Todd Adams, Trinity Southwest; Board Treasurer/Secretary, Brian Andrews, The Ashton Company; Associate Chairs, Tim Schutte, Earhart Equipment, Tom Kilargis, Pima County Department of Transportation, Morris Reyna, Town of Marana, Tim Malloy, Ferguson Waterworks, Fred Narcaroti, Ninyo & Moore; and Michael Kurpiewski, Sunbelt Rentals.

The National Science Teachers Association (NSTA), in collaboration with The Dow Chemical Company, the Amgen Foundation, Astellas Pharma US, Inc., the American Honda Foundation, the Bayer USA Foundation and Lockheed Martin, announced that Mountain View High School science teacher Tarah Dahl was chosen to participate as a Dow-NSTA Fellow in the 2012 NSTA New Science Teacher Academy. The only teacher selected from Arizona, Dahl will participate with 242 other science teachers from across the country in a year-long professional development program designed to help promote quality science teaching, enhance teacher confidence and classroom excellence and improve teacher content knowledge. APPOINTMENTS Dr. Francisco A. Moreno has been appointed as deputy dean

for diversity and inclusion, a new leadership position, at the University of Arizona College of Medicine – Tucson. Moreno will lead the college’s existing diversity and inclusion efforts for students, residents, faculty and staff, coordinating and evaluating programs in a larger, integrated initiative. In addition to overseeing the UA College of Medicine Office of Outreach and Multicultural Affairs and Arizona Hispanic Center of Excellence, he will work with the offices of admissions, student affairs, student development, graduate medical education and faculty affairs to attract diverse students, residents and faculty; provide opportunities for success; and foster a culture of inclusion and collaboration. Moreno earned a medical degree from the University of Baja California, then completed a psychiatry residency and research fellowship training in neuropsychopharmacology at the UA.

22 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE

What’s it worth? A primer on how stocks are valued

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

What is a stock’s true value? This question has challenged equity investors and analysts since stocks were first traded. At the core of any buy or sell recommendation lies some estimate of the stock’s intrinsic value — what it should be worth. But this can be calculated using different methodologies and considering a multitude of different qualitative and quantitative factors. Three of the most widely used approaches to valuation are net present value, the dividend discount model, and multiplier analysis. We’ll focus on multiplier analysis because it is the most widely used.

Southern Arizona presence

Multiple ways Looking at a stock’s price as a multiple of its earnings, revenues or assets is the most commonly used valuation metric among analysts and investors. Analysts will typically scrutinize the results of these ratios to examine how investors are currently pricing a publicly-traded company, noting how these multiples compare to industry peers, benchmark indices and market levels. • The price-to-earnings ratio (P/E) is by far the most widely used valuation metric. It indicates how much investors are currently willing to pay for each dollar of the company’s recent, current or estimated earnings. • The price-to-sales ratio (P/S) indicates how much the market is willing to pay for each dollar of sales. It is derived by dividing a company’s total market value (stock price times number of shares outstanding) by its yearly revenues. Investors will often use this approach when companies have not recorded a profit. The logic is that if sales are strong and growing, and the company is otherwise healthy, earnings may be just around the corner. Value investors, on the other hand, look for low price to sales ratios for stocks for companies that may have been unwittingly thrown on the scrap heap. • The price-to-book value ratio (P/B) is the result of dividing market capitalization by book value, also known as shareholder equity. Book value represents the company’s theoretical liquidation value, if the company shut down operations, paid off its debts and sold off its assets. As such, the usefulness of book value as a valuation tool depends significantly on the industry. It is particularly relevant in capital intensive businesses.

Use the entire tool kit In practice, investors will consider several different valuation approaches and then look at a variety of other information before arriving at a final value. They will try to determine whether a company is fundamentally sound by scouring public reports (10-Ks,

10-Qs, Annual Reports) examining industry trends and understanding the regulatory and market environments, among many other things. They will also consider technical factors such as the stock’s W. DAVID FAY trading history and trends. Ultimately, the “final” valuation will consider a multitude of factors, which may vary widely from analyst to analyst, and is ultimately up to the market’s judgment.

Company valuation analysis Analysts use multiple criteria for valuing a company, including: Intrinsic Value Analysis • Determines the security’s “intrinsic value” based on discounted “free” cash flow (DCF) analysis. • Includes estimates of future “free” cash flows that are discounted back to current dollars, including variables such as risk assessment and capital structure. • Looks at present value of shares vs. current share price. • Considers a 10-to-15-year projection. • Defines parameters around DCF to make it more reasonable, such as interest rate inputs. Relative valuation • Assesses a security’s relative value by comparing appropriate financial ratios across peer groups and industry group. • Reviews company value metrics, including P/E trading history, high/low in cycle and current P/E level justification. • Compares valuation versus appropriate index.

Risk assessment • Examines technical risk, which involves analysis of market trends and patterns rather than an exclusive focus on company fundamentals. • Evaluates insider buying, which may indicate whether company executives or employees believe their stock is undervalued. • Quantifies “beta,” a measure of the volatility of a stock’s price relative to the general market. No matter what your investment goals may be, a systematic process for stock selection can help take the emotions out of your decision making.

Contact W. David Fay, a second vice president in wealth management and financial advisor with Morgan Stanley Smith Barney, at http://fa.smithbarney.com/ thefaymillergroup or (502) 745-7069.

Company Name

Symbol

Feb. 6

Jan. 30 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

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.

0.04 0.07 18.48 45.64

0.03 0.09 18.38 45.06

0.01 -0.02 0.10 0.58

0.02 0.01 9.56 35.20

0.12 0.51 19.67 45.96

8.96 1.22 2.83 11.93 63.28 9.71 97.83 15.91 57.19 4.08 21.85 43.05 38.73 39.12 45.75 16.98 101.70 40.80 51.24 14.47 87.02 71.31 23.44 36.09 35.70 66.67 69.92 201.02 34.50 62.91 5.55 48.61 36.49 18.47 46.25 27.86 1.29 40.70 38.67 43.92 61.51 39.48 40.66 42.10 52.39 65.20 19.38 19.69 53.42 55.38 19.39 47.34 47.40 12.89 11.47 44.83 39.98 62.69 18.66 33.56 52.01 25.32 133.24 20.05 14.56 33.61 71.31 41.44 34.97 12.75 24.04

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

0.16 0.14 0.40 0.55 0.00 -0.54 0.95 0.01 1.31 0.07 0.39 1.10 -0.30 0.59 3.52 0.14 -0.83 0.40 -0.41 0.63 2.78 2.18 0.38 0.93 -0.55 -0.57 1.25 -2.50 0.08 -0.14 0.27 1.48 -0.34 -0.39 0.52 0.10 0.04 -0.90 0.46 0.56 1.68 -0.06 0.52 -1.06 0.42 -1.14 -1.25 -1.36 -0.73 0.73 0.23 -1.72 1.01 0.26 0.23 0.54 -0.42 1.71 0.45 0.74 1.87 1.24 2.07 0.23 0.26 0.47 1.56 1.57 0.00 0.57 0.50

7.97 0.36 1.48 6.72 50.95 5.30 77.89 11.20 50.89 2.97 14.97 24.61 26.84 19.50 22.19 12.13 81.98 36.52 42.43 8.42 47.74 50.27 13.45 30.54 21.38 44.83 52.21 181.85 27.10 53.38 3.94 30.83 27.96 6.46 41.35 20.98 1.04 22.01 24.76 37.58 53.18 32.31 33.93 24.07 41.11 56.59 15.69 7.63 48.41 38.63 14.73 33.03 38.40 6.25 7.76 39.01 25.77 51.51 14.04 26.06 33.62 17.45 104.08 18.36 6.78 28.26 57.18 28.53 29.80 7.80 17.45

10.92 1.26 3.56 12.20 64.79 10.57 99.00 27.95 60.00 4.93 22.29 43.34 40.28 39.39 46.80 17.50 105.97 43.43 52.73 14.49 89.98 71.38 24.29 47.28 36.90 68.15 70.17 211.79 37.70 64.47 5.85 48.83 38.62 19.63 55.25 27.96 1.81 43.22 39.26 44.13 62.83 42.17 41.84 44.85 53.50 71.25 43.18 21.97 59.34 56.16 23.16 49.56 85.90 13.93 11.62 46.08 42.55 65.80 18.95 34.24 52.72 26.37 136.19 54.38 15.64 35.46 77.60 41.61 36.60 12.78 24.20

InsideTucsonBusiness.com

FEBRUARY 8, 2013

INSIDE REAL ESTATE & CONSTRUCTION

Foreclosure notices fall below 700 for fifth straight month By Roger Yohem Inside Tucson Business Depending on how the data is cut, home foreclosure notices in January were higher. And lower. Compared to the previous month, December 2012, notices spiked 19 percent to 631 in January, from 532. That follows a pattern of significantly more notices being filed once the holiday months of November and December are over (see table). “Over the holidays, there’s a big hitter that affects foreclosures. Fannie Mae and Freddie Mac basically do a moratorium on filings so we see a bump in January,” said Cathy Erchull, president for 2013 of the Tucson Association of Realtors. On the downside, where lower is better, foreclosure notices have been below 700 for five consecutive months since September 2012, according to the Pima County Recorder’s Office. During that time, the average has been 592 notices per month, compared with 631 notices issued in January. A notice of trustee’s sale is the first step in the foreclosure process. Since 2011, about 70 percent of households served with notices are unable to work out a mortgage modification and end up losing their homes. Foreclosure notices have stabilized somewhat because the wave of 5-year adjustable rate mortages (ARMs) has almost dried up. “We’re still going to see more foreclosures but most resets ended in the third quarter. For 2013, I think notices will continue to go down. Plus, lenders are working more with short sellers so their home doesn’t go to foreclosure,” said Erchull, an

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

TUCSON REAL ESTATE

1/28/2013

1/21/2013

$150,000 5,129 393 439 250

$140,000 5,150 372 437 161

Source: Long Realty Research Center

Notices of Trustees Sales Pima County Recorder Foreclosure 2008 699 598 661 700 720 742 721 814 782 921 675

January February March April May June July August September October November

December Total Monthly avg.

30 YEAR 15 YEAR 5/1 ARM

Current

2010 863 982 1,089 985 890 862 1,111 1,067 1,090 1,019 829

923 1,038 876 8,956 12,184 11,663 746 1,015 972

2011 975 762 948 721 748 693 666 917 797 816 754

2012 705 918 904 910 984 946 797 794 625 638 534

636 532 9,433 9,287 786 774

2013

631

Sales and leases

631

Pima County Recorder’s Office data

associate broker with Tierra Antigua Realty. Since 2009, sales of foreclosed homes have been extremely uneven. There were 416 distressed properties sold in January compared to 356 in December and 491 in November. However, as foreclosures and shadow inventory continue to decline, real estate is trending toward a more normal market. “A normal market will be neutral, not a seller’s or a buyer’s market, but balanced,” said Erchull.

Land sales surge “This is the year of the resurgent homebuilders market,” insists land broker Will White in light of three large land sales that closed in recent weeks. The surge in acquisitions was led by national builders Lennar Arizona, Richmond American Homes and Maracay Homes. Plus, an investment company increased its holdings in the Rancho Vistoso masterplanned community in Oro Valley. A partnership of Lennar and Richmond American made the largest purchase: 165

WEEKLY MORTGAGE RATES Program

2009 882 1,016 1,154 1,093 991 1,002 1,063 1,130 1,008 948 859

Last Week

2/5/2013

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%

who completed his one year term of service. Joining Mackey as board officers are first vice president Chris Rogers of Granite Construction; second vice president Todd Adams of Trinity Southwest; and treasurer/ secretary Brian Andrews of the Ashton Company. Tim Schutte of Earhart Equipment will chair the Associates Committee. Other 2013 directors include Tom Kilargis, Pima County Department of Transportation; Morris Reyna, Town of Marana; Tim Malloy, Ferguson Waterworks; Fred Narcaroti, Ninyo & Moore; and Michael Kurpiewski, Sunbelt Rentals.

platted lots at Mountain Vail Estates on Mary Ann Cleveland Way on the southeast side for $4.3 million. The seller was MC 140 LLC, an affiliate of Diamond Ventures Inc. For $2.4 million, Richmond American bought 88 lots and for $1.9 million, Lennar bought 77 lots. The 135-acre master planned community has total of about 500 home sites. At Rancho Vistoso, a 26-acre infill parcel on West Pebble Creek Drive was acquired by Vistoso Holdings Two LLC for $3.4 million. The company is an affiliate of True Life Communities, based in San Ramon, Calif., that had purchased an adjacent, undeveloped 168-acre parcel for $10 million last year surrounded by the Rancho Vistoso Golf Course. The seller was Arizona Vistoso Return LLC, based in Kansas City, Mo. The third large sale was $1.5 million to acquire 23 finished lots at Tangerine Crossing, northeast of Tangerine and Thornydale roads in Marana. Maracay 91 LLC, an affiliate of Maracay Homes, bought the parcels from MFV-FC Portfolio LLC, based in Minnesota. “It’s becoming very obvious that our market is being dominated by the national players, the big publicly-traded home builders,” said White, Tucson manager of Land Advisors Organization, and the agent who closed all three deals. Greg Vogel, also with Land Advisors, co-brokered the Rancho Vistoso sale. “The lots in Vail will probably go into production immediately,” White added.

TUCA officers Ryan Mackey, division manager for Sunland Asphalt, has been named 2013 president of the board of the Tucson Utility Contractors Association (TUCA). He replaces Chris Albright, vice president with KE&G Construction,

• Jo-Ann Stores leased 13,043 square feet at 18705-18805 S. Interstate 19 Frontage Road in Sahuarita Plaza from Sahuarita Investment Partners, represented by Greg Furrier and Rob Tomlinson, Picor Commercial Real Estate Services. • BE Aerospace leased 11,461 square feet at 8080 E. Research Court from Research Court Properties LLC. The tenant was represented by Peter Douglas, Picor Commercial Real Estate Services. • Independent Courier leased 10,000 square feet at 845 E. Ohio St., Suite 107, from Ashland Group. Brandon Rodgers, Picor Commercial Real Estate Services, handled the transaction. • A World of Tile leased 8,761 square feet at 7930 E. Speedway in Speedway Pantano Square from Larsen Baker, self-represented by Andy Seleznov and Melissa Lal. • RAM Enterprise leased 7,800 square feet at 4353 E. Tennessee St. from Tennessee Street LLC, represented by David Gallaher, Tucson Industrial Realty. The tenant was represented by Bob DeLaney and Tim Healy, CBRE. • Speedrod leased 7,700 square feet at 1605 W. Grant Road from Rich Rodgers Investment Inc. The transaction was handled by Brandon Rodgers, Picor Commercial Real Estate Services. • Caring Transitions leased 1,725 square feet at 2341 S. Friebus, Suite 19 from Oak Properties. Rob Glaser with Picor handled the transaction. • Good Ole Tom’s leased 1,680 square feet at 6305 E. Broadway from J. Herndon. The transaction was handled by Robert Nolan and Randy Jones with Oxford Realty Advisors. • Casa de Los Ninos leased 1,661 square feet at 2224 N. Craycroft Road from 2222 Craycroft LLC. The transaction was handled by Jon O’Shea and Rob Fischrup of Vast Commercial Real Estate.

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

24 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Top 10 fixes from the King of Tucson Traffic It’s February, winter visitors are here, so it must be time for my annual column about traffic in Tucson. What? You didn’t realize I wrote a column every year about traffic in Tucson? Neither did I, but in making sure I wasn’t repeating myself, I looked it up. It turns out I’ve done it three of the last four Februaries. It must have to do with the fact that I, like all Tucsonans, DAVID HATFIELD spend more time in traffic with our winter visitors, so I have more time to think about it. This year I was imagining what I might do if I were the King of Tucson traffic. Here are my top 10 ideas, counted down in David Letterman-style fashion: 10. Two vehicles traveling side-by-side cannot keep the same pace. The city fathers in another town where used to live used this as a way to stop us from cruising. At least it kept traffic moving. 9. Require a minimum speed. I remember weeks after my dad died when I was teenager we got a notice that he had failed to pay a fine on a ticket he received for going too slow on a freeway. Never heard of it before or since, but it makes sense. 8. Re-time intersection traffic lights to eliminate the pause that has all traffic stopped for a moment before the signals change. 7. Install cameras to eliminate red-light runners once No. 8 is completed. 6. Allow only one left-turning vehicle per lane in an intersection at a time. I saw maybe 10 cars creeping out waiting to make a left turn at one intersection when an emergency vehicle got stopped by the gridlock. I hope nobody died. 5. Fire the person who designed the Grant-Craycroft roads intersection that was completed in 2010. Bus pullout lanes were part of the $2.1 billion, 20-year regional transportation plan voters approved in May 2005, but the knucklehead who had $6.4 million to design Grant-Craycroft forgot them so north-south traffic still gets stopped by Sun Tran buses. 4. Get rid of, or at least redraw, the dotted lines in intersections that are supposed indicate turn lanes. If you actually tried to follow the one from northbound Wilmot Road on to westbound Pima Street you’d drive up onto the median island. 3. When someone passes you on the right, you’re wrong. That used to be a line in the California Driver Handbook. It clearly outlines the safety advantages of faster traffic traveling to the left. To this day it’s not uncommon for a driver on a California freeway to move to a slower lane if passed on the right. 2. Use only one way to make a left turn. Traffic engineers can talk all they want about how the new Michigan, or indirect, left turn is safer than other left turns but it adds to confusion — and Tucson drivers already seem plenty confused. How many ways can we make a left turn at a traffic signal? This makes five. 1. Build a cross-town loop freeway. It could be along Grant and Houghton roads, which have been designated for federal highway funds. With the growth on the northwest, however, side it might be better along River and Houghton roads.

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

EDITORIAL

Good news, even if it isn’t popular From the “if it bleeds it leads” mentality of news judgment, we couldn’t help but notice that a blog post on Inside Tucson Business’ website — www.InsideTucsonBusiness.com — has popped up as the most-viewed item on the website. It was a post from 24/7 Wall St. doing its annual ranking of the 100 largest cities in the U.S. based on local economies, fiscal management and quality of life. Tucson was No. 20 on the list of worst-run cities. That feeds into the negative rhetoric about Tucson and we suppose there’s some satisfaction that 19 other cities are worse, including the absolute worst, San Bernardino, Calif. We get it that these rankings induce buzz. But before we get too carried away parroting the line, let’s look a little closer at the situation. First off, 24/7 Wall St. listed Tucson’s 9.2 percent unemployment rate as tied for the 49th highest or smack dab in the middle of 100 cities — if it were true. The fact is, Tucson’s unemployment rate hasn’t been at 9.2 percent since January 2011. That was two years ago. The highest it was for any month in 2012 was 7.8 percent in both January and February. Although it ticked up slightly in December, the year ended at 7.3 percent. Beyond that, the 24/7 Wall St. editors noted the housing crash didn’t hit Tucson as hard as other Arizona cities. Although that can be construed as positive news, it’s merely the result of the fact that Tucson house prices didn’t run up as much as elsewhere in the boom years. Is that really a calculation that plays a part in how well a city is run? It had an impact on Moody’s Investors Service last year, giving the city a negative outlook on its general obligation revenue bonds — but the rating was still Aa2, the third highest rating Moody’s gives and still considered high quality with very low credit risk. One point noted by 24/7 Wall St. that is of concern is

the 6.5 percent rate of violent crime, according to FBI Uniform Crime Reports statistics. But even these were from 2011 and, as the FBI points out every year, Tucson law enforcement tracks data differently and it cannot be readily compared city to city. What we do know, because we live here, is that this data is old and not reflective of what is happening. Tucson Mayor Jonathan Rothschild and City Manager Richard Miranda have made real progress restoring confidence and integrity at City Hall. It’s very much a work in progress and we’ve heard there’s been a bit of struggle trying to persuade some in Planning and Development Services that there’s no place for their penny ante extortion tactics. Bureaucratic intransigence can be mighty difficult to change, but under Rothschild and Miranda light has been shed on the city’s ParkWise, Department of Transportation and Tucson Convention Center and changes have been made. Credit also goes to City Councilman Steve Kozachik, who doesn’t shy away from demanding accountability. It’s not only at City Hall, either. At the insistence of the Legislature, the state Auditor General’s office conducted an audit of how Pima County is spending its general obligation bond money. After combing through thousands of pages of documents on more than 500 bond projects, the auditor general gave the county a clean audit this month despite what the accusers were saying. Accountability also is a hallmark of the Regional Transportation Authority. While some NIMBYs are still trying to derail projects in the $2.1 billion, 20-year regional transportation plan approved by voters in May 2005, nobody can argue the RTA isn’t delivering on its promises. It’s frustrating that it’s taking so long for the Tucson region to recover from the Great Recession, but as it does there will be less finger-pointing and blame. The news will be the success we can share.

InsideTucsonBusiness.com

FEBRUARY 8, 2013

OPINION WAKE UP, TUCSON

Parents and the prescription for disaster We in Tucson know first-hand the horrible damage that can be caused by a mentally disturbed individual. What happened Jan. 8, 2011, was one of too many events where, usually, a middle- to upperclass white male has committed an evil act resulting multiple fatalities. These events have prompted a lot of debate about gun control and the need for mental health care. But rarely noted in the debate raging on the Fox News Channel, MSNBC or in the local newspaper are two other contributors to these incidents: parents and prescription drugs. Parents of these murderers helped make them the people they turned out to be. Even if they were good parents and happened to have children with mental issues, they did little to protect the public who paid the price later. Perhaps a little shame wouldn’t be such a bad thing. Parents rightfully should be praised when their children turn out to be a great student, humanitarian or athlete. It’s time parents are also held responsible for raising children who walk into a school or shopping center and murder fellow human beings. As for prescription drugs, David Kupellian, author of “How Evil Works: Understanding and Overcoming the Destructive Forces That Are Transforming America,” has compiled a list of past

perpetrators and the prescribed drugs they were taking, or coming off of, when they committed their horrible deeds: • Eric Harris, 18, who with classmate Dylan CHRIS DeSIMONE Klebold, 17, killed 12 students and a teacher and wounded 24 others in a 1999 rampage at Columbine High School in Colorado, was taking Luvox, a type of antidepressant called a selective serotonin reuptake inhibitor (SSRI). Luvox manufacturer Solvay Pharmaceuticals concedes that during short-term controlled clinical trials, 4 percent of children and youth taking Luvox – that’s 1 in 25 – developed mania, a dangerous and violence-prone mental derangement characterized by extreme excitement and delusion. • Patrick Purdy, 25, who murdered five children and wounded 30 during a 1989 school-yard rampage in Stockton, Calif., had been on Amitriptyline, an antidepressant, as well as the antipsychotic drug Thorazine. • Kip Kinkel, 15, who murdered his parents in 1998 and the next day went to

his school, Thurston High in Springfield, Ore., and opened fire on his classmates, killing two and wounding 22 others, had been prescribed both Prozac and Ritalin. • Laurie Dann, 31, who in 1988 went on a shooting rampage in a second-grade classroom in Winnetka, Ill., killing one child and wounding six, had been taking the antidepressant Anafranil as well as Lithium. • Michael Carneal, 14, son of a prominent attorney who in late 1997 traveled to Heath High School in Paducah, Ky., and shot and killed three students and wounded another attending a prayer meeting in the school’s lobby, was reported to be on Ritalin. • Jeff Weise, 16, who was living on Red Lake Indian Reservation in Minnesota in 2005 when he shot and killed nine people and wounded five others before killing himself, had been taking Prozac. • Joseph T. Wesbecker, 47, shot 20 workers at Standard Gravure Corp. in Louisville, Ky., in 1989 a month after starting to take Prozac. • Kurt Danysh, 18, shot his own father to death in 1996 in Brooklyn Township, Pa., a little more than two weeks after starting on Prozac. “I didn’t realize I did it until after it was done,” Danysh said afterward. “This might sound weird, but it felt like I had no

control of what I was doing, like I was left there just holding a gun.” • John Hinckley, 25, who attempted to assassinate President Ronald Reagan in 1981 in Washington, D.C., took four Valium two hours before the shooting in which he wounded the president’s press secretary James Brady, Secret Service agent Timothy McCarthy and policeman Thomas Delahanty. • Andrea Yates, 36, who drowned her five children, ages 7 years to 6 months, in a bathtub in their Houston home in 2001 insisting inner voices commanded her to kill her children, had been taking the antidepressant Effexor. Four years later Effexor manufacturer Wyeth Pharmaceuticals added “homicidal ideation” to the drug’s list of “rare adverse events.” The toxicology reports on the assailants in Tucson; Aurora, Colo.; and Sandy Hook, Conn., are yet to be be made public. Gun shows and the National Rifle Association make convenient targets for politicians. But do they have the courage to go after big pharma and doctors?

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

GUEST OPINION

The ins and outs of a social media policy I can tell you there’s a lot of advice out there about how to write a social media policy, and it is dominated by consultants who work for medium-sized and large corporations. But what about your 15-person nonprofit? Your home-grown restaurant chain? Your small network of art galleries? With Facebook, Twitter, Pinterest, Tumblr, blogs, FourSquare, Google+, YouTube, Yelp, Instagram and others inviting you to become more social, what should your policy look like? Here are some tips and strategies that will help your organization or business write a social policy that works for you.

Where do you start? There are three documents a business or nonprofit should create to take charge of your accounts on social media. • Social media policy. A good policy answers internal questions about purpose, defines ethical and responsible behavior, and lays out how the levels of management and oversight will function. You may also have an external policy for the public that covers commenting and interaction guidelines. • Social media plan or strategy. This document captures social media’s role in the

bigger picture of your marketing efforts, face-to-face relationships and online presence. How should social media support the website and vice versa? If you use a variety of social LISA WAITE BUNKER media, how do they feed and support each other? How will you define success? • Training materials. Don’t use your plan or your policy documents for training— they are your underpinnings. The training document is constructed for easy reference and maximum inspiration. Training materials should include information on best practices and clarify the rules most pertinent to everyday work.

Preparing for success The first step is to look within your organization for a cheerleader for the creative use of social media. Ask that person to help you create a cross-functional team to write your policy. Next, you’ll want to do an audit of the

existing social media accounts by searching all the major platforms for accounts with your name. You may find surprises! Comb through existing policy for areas that can be adapted for social media. For example, I developed some of the library’s social media policy after seeing our existing bulletin board and meeting room use polices. Finally, you want to create and maintain a list of all of the people who will be social media administrators and the passwords for each social media account.

Questions a good social media policy should answer Definitions: • What is social media? What types of platforms are covered? • What will they be used for? • What may staff write about? Staffing: • Which staff members can write for your organization? • Who provides social media training? • Who has oversight and collects the statistics and analytics? • Who decides what new platforms to add or when it’s time to shut it down and

move on? Organizational structure • How does social media fit into your organizational structure? Is responsibility centralized or distributed? • What legal considerations do you have regarding records retention, free speech, privacy, or operational and information security? • Where is your balance between transparency and security? Another important aspect of your policy is to figure out what to do when things go wrong. How will your organization handle flubs or criticism in a public forum? And finally, remember when you’re writing your social media policy, that your ultimate goal is to have an engaging, appealing and shareable page that represents the best of what you offer. For a checklist of the specific questions a social media policy should answer, please see the Jan. 16, 2013, post on our Catalyst Café blog: tucsontalks.blogspot.com.

Contact Lisa Waite Bunker, social media librarian for Pima County Public Library, at lisa.bunker@pima.gov. Catalyst Café is a free monthly networking and idea program for small businesses and nonprofits.

26 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

OPINION ADVOCATING FOR BUSINESS

Help give Tucson visitors a better first impression The gateway to Southern Arizona for more than 3½ million visitors, tourists and business people a year is Tucson International Airport (TIA). The terminal itself is a beautiful and efficient structure. However, driving from the airport on Tucson Boulevard, the visual experience is very different for our guests. That’s why the Tucson Metro Chamber’s Community Affairs Committee has formed the First Impressions program. First Impressions is a sequence of projects to beautify Tucson, increase community pride and project the best possible image to the world. The first project proposed under the First Impressions banner is a $350,000 upgrade to the roughly half mile of Tucson Boulevard from the airport to Valencia Road. This stretch of road is a poor reflection of what Tucson and Pima County promise beyond majestic mountains and temperate climate. The chamber’s Community Affairs Committee already has received designer renderings and detailed landscape plans for the improvements. The resulting product will be a beautiful, inspirational and impressive mix of landscaping, arts and Southwest culture that says “welcome to our city.” It will be the first and last impression our visitors have of our city and area. Richard Underwood, a board member of the Tucson Metro Chamber and president of AAA Landscape, is chairing this committee. In a recent discussion, he told me that “Completing this upgrade will give every citizen of Southern Arizona something to be proud of and will make the most positive impression possible on

anyone visiting our region.” Indeed. The road leading into and out of Tucson International Airport should be first class. We are a region rich with natural beauty and MIKE VARNEY a unique heritage, yet there is nothing reflecting either quality to greet our guests when they arrive at the airport. Underwood has done a good job to date, but the effort needs help. Landscaping companies are donating labor. Landscape material providers are donating vegetation and other landscaping materials. Other civic groups in Southern Arizona are contributing ideas and support. But more help is necessary. The First Impressions project will need a broad base of corporate and citizen support. This project will last us all a lifetime. It will be a sense of pride and a very positive statement about our community and its culture. The First Impressions Committee is currently in the funding process. Efforts are underway to secure corporate support for the project. Major donors are important, but so are grassroots contributions. You can support the First Impressions project by sending a check made payable to the First Impressions Project. No contribution is too small. Every contribution moves the project closer to commencement. Take pride in helping to create a finished

product that will be both beautiful and inspirational. It will be a beautiful “welcome to our city” message to guests of all kinds. It will be the first and last impression people have of Tucson.

InsideTucsonBusiness.com

Contact Mike Varney, president and CEO of the Tucson Metro Chamber, at mvarney@tucsonchamber.org or (520) 792-2250. His Advocating for Business column appears monthly in Inside Tucson Business.

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InsideTucsonBusiness.com

FEBRUARY 8, 2013

PPhoenix UBLIC A UCTION Monthly Auction @ 8am

AIRLINES ARE HIRING

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Call 623-2350 to place your ad today. *Media Audit Feb-Mar 2010

28 FEBRUARY 8, 2013

INSIDE TUCSON BUSINESS

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