Inside Tucson Business 3/29/13 by Territorial Newspapers

BUILDING A STARTUP ‘ECOSYSTEM’ Gangplank looks to move into downtown digs, tap growing energy in city’s heart PAGE 3

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • MARCH 29, 2013 • VOL. 22, NO. 44 • $1

Laser technology helps renovation contractors “see” Old Main M i Page P g 4

Meeting of the minds Regional, intern international national mayors meet to o discuss economic opportunities oppo ortunities Page 6

Chamber Insights Big names shar share re successes business succes sses Page 12

Say what? Napolitano doesn’t use email — it ‘just sucks up time’ By David Cook The Christian Science Monitor While her boss, President Obama, carries a special, high security BlackBerry that allows him to keep up with email, Homeland Security Secretary Janet Napolitano takes an opposite approach. She doesn’t use email. “I think e-mail just sucks up time,” Napolitano told reporters Tuesday at a breakfast sponsored by The Christian Science Monitor. “You are all nodding and laughing, but you know I speak truth.” The former Arizona governor who now runs a massive and complicated department – forged out of 22 dispa-

rate components – with 240,000 employees and a budget last fiscal year of $59 billion argues that doing without email allows her to Secretary of Homeland Security Janet Napolitano have a better handle on the flow of information she needs. “In this job, which has a hundred thousand different things that happen on any given day, it allows me to focus on where I need to focus,”

Napolitano said. How does she get her information? “I do a lot of my own work by phone,” she said. And she is briefed by staff. “I am constantly getting reports and emails throughout the day that come in through my headquarters staff that get to me,” she said. The secretary stopped using email when she was Arizona attorney general, a position she held from 1998 until she was elected governor in 2002. “You get hundreds and hundreds of things all the time and I was like, ‘Why am I spending my time scrolling through this and responding to

stuff that doesn’t really need to be responded to’,” she said. “I also don’t like the process where people could send you an email and then say, ‘See, you were told,’ or ‘You know this.’ “ Napolitano was asked whether she had sworn off email for the rest of her life. “I may use it at some point, but right now I have no contemplation of doing so,” she replied. The secretary added that while she does not use social media such as Twitter, “we have found that social media in disaster response is really quite useful.” The Federal Emergency Management Agency (FEMA) is part of her department.

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MARCH 29, 2013

NEWS

Gangplank ready to move into downtown office By Patrick McNamara Inside Tucson Business

BIZ FACTS

Phone: (520) 294-1200 Fax: (520) 295-4071 3280 E. Hemisphere Loop, #180 Tucson, AZ 85706-5027 insidetucsonbusiness.com

Gangplank Tucson tucson.gangplankhq.com (520) 230-5933

Startup Tucson startuptucson.com Noelle Haro-Gomez

Eager to harness the momentum growing around downtown Tucson, the collaborative workspace group Gangplank Tucson is about to finalize a deal to move into the Pioneer Building. “The short-term benefit for Gangplank to be downtown is that there’s a lot more energy here,” said Aaron Eden, director of Gangplank Tucson. Eden said construction of the city’s Sun Link modern streetcar, University of Arizona student housing and an influx of private development has made downtown a desirable spot for Gangplank. As an example, he said Gangplank’s weekly meetings at its current headquarters in the Bookmans online fulfillment center near Interstate 10 and Palo Verde Road have been attended by an average of just five people. A recent meeting at the new site drew in more than a dozen people. Eden said he anticipates more interest after the move is completed and the group becomes more easily accessed. Justin Williams, founder of Startup Tucson, a group which will share space with Gangplank, said the proximity to housing and the UA make the downtown location ideal. “The density of creative-class talent is very important,” Williams said. He said groups like Startup Tucson and Gangplank can help to fuel the entrepreneurial spirit of the region by providing a space for people with ideas to collaborate and work on projects. Williams said the long-term goal of the groups’ shared vision is to create in Tucson something that has existed for many years in places such as Boston; Austin, Texas; Boulder, Colo,; and California’s Silicon Valley. In short: innovation and opportunity. “We’re looking at building the entire breadth of a startup ecosystem,” Williams said. “We’re building for 20 years from now.” Part of that building process, Williams

Co-founders of Lead Local, Robin Breault, left, and Brooke McDonald, working at Gangplank.

and Eden said, involves being located in an area that attracts people. While the Bookmans site has been a good place to get started, Eden said a downtown location is better for its accessibility and nearby attractions, including restaurants and bars. He said Gangplank was grateful for Bookmans generosity, having donated the space free of cost. Eden said the group would occupy an 8,000-square foot ground floor and basement space in the Pioneer Building, 100 N. Stone Ave. Gangplank has been negotiating its lease with Pioneer Building owner Holualoa Companies where president I. Michael Kasser has tentatively agreed to pay the rent for the first six months. “I think it would be a real shot in the arm for downtown to have Gangplank and to bring that entrepreneurial spirit,” said Stan Shafer, executive vice president of operations for Holualoa. Shafer said the company supports the collaborative approach of Gangplank and sees the group as an important part of the future growth of the region. In addition to the help coming from Holualoa, Eden said the Desert Angels investment group, the Arizona Center for Innovation and Bookmans have all been strong supporters of Gangplank. Eden said Gangplank Tucson has been in contact with City of Tucson officials in an effort to get funding through an economic de-

velopment program or some other financial assistance. “In a perfect world it would be great to have us funded by a municipality,” Eden said. In Chandler, for instance, Gangplank received a $400,000 grant to renovate its building in the city’s downtown center. The Chandler organization also provides consulting services and helps out in area schools. Eden compared the organization of Chandler’s Gangplank as similar to a public library or other publicly funded community service. Tucson city officials have not yet acted on the Gangplank Tucson proposal, which was submitted just within the past few weeks. In addition to providing workspace for budding entrepreneurs, Gangplank offers networking opportunities, business incubation and mentoring. Its eight-week Lean Launchpad program teaches participants the ins and outs of getting a company off the ground. Eden said that in the two years Gangplank has been in Tucson, at least five successful businesses have emerged through the Lean Launchpad program. Gangplank was founded in 2008 in Chandler by Derek Neighbors, Jade Meskill and Katie Charland. Since then, the nonprofit group has opened additional locations around the Phoenix area and in Canada.

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

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.

Grocer and near governor Eddie Basha dies at 75 Eddie Basha Jr., arguably Arizona’s bestknown retailer and who came close to being elected the state’s governor in 1994, died Tuesday (March 26) at the age of 75. Basha had suffered from congestive heart failure three years ago and went to the hospital again last week but was allowed to go home. Basha’s son, Edward “Trey” Basha III, now the president and CEO of Chandlerbased Bashas’, issued a letter to employees, whom the company calls members, telling them of his Eddie Basha Jr. father’s passing, saying, “From our earliest childhood, he always reinforced to us the importance of our members and giving back to our community. Some of his fondest times were being with Bashas’ members and customers, whether at the office, the Distribution Center or in the stores.” The letter went on to say, “During Eddie’s lifetime he faced many challenges, the last few years being among the most challenging. But his desire to serve the people of the state he loved so well, and to take care of the members that he cared for so much, always gave him strength in the face of adversity.” The last item was an obvious reference to the fact that in addition to his health issues. Bashas’ filed for Chapter 11 bankruptcy reorganization in the summer of 2009 emerging a year later with recapitalization plan. To this day, employees of the stores can be seen wearing buttons reading, “Thanks for supporting us.” In 1968, at age 31, after the deaths of both his father and uncle, Eddie Basha took over the company growing it to 150 stores with $2 billion in sales in 2005 operating stores under names including Bashas’, Food City and AJ’s Fine Foods. In 1994 he ran for governor. After a surprising 1.6 point victory over Terry Goddard in the Democratic primary, Basha lost in the general election to Republican incumbent Fife Symington, who resigned in 1997 after being convicted of bank fraud. Basha is survived by his wife Nadine and six sons. Funeral services are today at St. Andrew the Apostle Church in Chandler.

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

6 7-9 10 13 14 14 15

Inside Media Finance Real Estate & Construction Biz Buzz Editorial Classifieds

16 18 19 20 20 23

4 MARCH 29, 2013

INSIDE TUCSON BUSINESS

NEWS Businesses invited to see $10 million data center

What’s old at Old Main will be new again

A 38,000 square-foot, $10 million data center is getting ready to open and owner Involta is inviting business leaders to attend a celebration in which they will show off what it has to offer. The grand opening is planned for 1 p.m. Wednesday (April 3) at the facility, 1215 E. Pennsylvania St., east of South Park Avenue between Ajo Way and Irvington Road. Involta, based in Cedar Rapids, Iowa, says the facility is a world-class, concurrently maintainable, multi-tenant data center providing businesses and other organizations with secure data storage in a cutting-edge high-tech environment. It is the first of what is called a Tier III data center in Tucson, offering a redundant power supply as well as high level security measures, such as biometric access controls. The Tucson facility is Involta’s fifth. It also has data centers near Cedar Rapids, Akron, Ohio; Boise, Idaho; and Duluth, Minn. Business leaders wishing to attend the opening celebration are asked to make a reservation at http://goTucson.Involta.com. Otis Blank photos Scans by Darling Geomatics

Raytheon Missile Systems gets larger in consolidation Raytheon’s Missile Systems, headquartered in Tucson, stands to become larger under a consolidation of the company’s divisions as a means to streamline operations and save $85 million per year. Under the changes that are to take effect Monday (April 1), Raytheon’s Combat and Sensing Systems division and Raytheon UK will come under the Missile Systems Division. The combined businesses had $6.5 billion in external sales last year, according to Raytheon. Taylor W. Lawrence will continue to lead the division. While the consolidation includes the elimination of 200 employee positions, none are expected to affect the Missile Systems Tucson division. “I’d look at this as a positive for Tucson,” said Jon Kasle, a spokesman at Raytheon’s corporate headquarters in Waltham, Mass. At the same time, Kasle said it’s too soon to say if the changes might mean an expanded workforce in Tucson. Other changes include: • Raytheon Integrated Systems, headquartered in Tewksbury, Mass., will add two new product lines, C41 Systems and Air Traffic Management. • Raytheon Intelligence, Information and Services is a newly formed division combining the operations of the former Raytheon Technical Services Company, Dulles, Va., and Intelligence and Information Systems division in Garland, Texas. • Raytheon Space and Airborne Systems, based in El Segundo, Calif., will now include Integrated Communication Systems and Ad-

This multi-million point scan will help Sundt Construction upgrade and preserve Old Main.

By Roger Yohem Inside Tucson Business In about a year, what’s old at Old Main will be new again. But it will look more like the original. What once was in 1891 will be restored to the way it used to be. Yet better, with 21st century materials. Using innovative spatial-measurement technology, the historic University of Arizona landmark will be renovated for modernday functionality and to recapture as much originality as possible. “We’re taking 500,000 to 1 million measurements every second. Each laser beam that goes out measures angle, elevation and distance to whatever it bounces off of. The scanner has complex electronics and optics that basically keeps track of all the beams going out and coming back,” explained Vaughn Mantor, director of marketing for the 3D Scanning Division of Darling Geomatics, 9040 S. Rita Road, Suite 2350, in the UA Science and Technology Park. Eric Streicher of Darling Geomatics preps for a scan.

“This is not a photo. It’s a laser that scans millions of points. The end game is to provide an exact representation of this building as it exists now,” he added. Those millions of points yield thousands of images. Those images are used by engineers, architects and designers to help Sundt Construction plan Old Main’s complex upgrades and preservation. No original drawings exist so they will rely on Darling Geomatics’ data for a precise 3D model of the building’s structure, architecture, utility systems and other “as-built” details down to one-quarter inch accuracy. Several major structural repairs have been identified, such as a leaky roof and weakened load-bearing beams. Plus, much of the historic character has been lost through decades of remodeling. “We know the original ceilings were taller but not by how much. The ceilings were dropped, that is where a lot of ductwork and utility lines are. Now, we can tell them exactly what that height was because we have

MORE PHOTOS ON FACING PAGE

Correction AutoNation is a member of the Tucson New Car Dealers Association, according to this year’s president Oscar A. Campos, who is also president of Thoroughbred Nissan. A story in the March 22 issue noting that AutoNation’s two Tucson dealerships, BMW Tucson and Dobbs Honda, do not participate in the group’s voountarily closing of dealerships on Sundays said they were not members. The table in the March 22 issue showing airline passenger travel statistics at Tucson International Airport was a repeat of the same chart that appeared in the Feb. 22 issue. The correct table showing February statistics appears in this issue on Page 17. Oro Valley Hospital now has 144 beds. A reference to the number of beds in a story in the March 22 issue was out of date.

InsideTucsonBusiness.com

MARCH 29, 2013

NEWS This Week’s

Good News Power of innovation University of Arizona students showed off the business concept projects they’ve been nurturing Thursday (March 28) at the 10th annual Innovation Day. With any luck, some of the projects will grow into real businesses opportunities. And the more of those that happen, the better for the economy.

The Tucson

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

Archeological ﬁnd The folks at Darling Geomatics won’t say it. They’d rather let the public and religious and scientific communities draw their own conclusions about an archeological discovery in Turkey of great significance. An artifact co-owner Rich Darling described as a large wooden structure high up on a mountain. Darling Geomatics is planning a return trip to the site to do a comprehensive 3D laser scan of the artifact. In January, their scan was scrubbed due to the weather after they arrived. The opportunity to go back to scientifically document and authenticate the item of intrigue is so compelling Darling is donating the time and company resources for the project.

scanned it,” said Mantor. “To get back as close to the original, they will cut that space down,” he added, “and still meet today’s building codes.” The Arizona Board of Regents has approved $13.5 million to preserve and renovate Old Main. To prepare for construction, Darling Geomatics has scanned the building’s entire exterior and designated interior spaces. Before the advent of laser scanning, contractors used traditional surveying tools and techniques such as tape measures, plumb bobs, sketch pads and “crawling odd spaces to take photos,” said Mantor. “This technology is based on the class everyone hated in high school: trigonometry,” he said. “Laser scanning is like trig on mega-steroids, it does millions of calculations per second to get a highly accurate, true-scale image.”

Fly away Lufthansa?

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254. TOP John Heidmann, Darling’s project manager, scans a long, dark underground utility tunnel.

ABOVE Vaughn Mantor in Old Main’s leaky attic. LEFT The results of the utility tunnel scan, no lights needed.

The federal government’s game of chicken ... er, sequester ... is continuing with word that the German airline Lufthansa might move its pilot training operations out of Arizona and the U.S. if the Federal Aviation Administration goes through with its plans to shut down the control tower at Phoenix Goodyear Airport. Between 180 and 250 pilots per year are trained at the Goodyear training school that goes by the name Airline Training Center Arizona. This is not the same training long-time Tucsonans might remember from the early 1970s when Lufthansa 747s routinely used Tucson International Airport. In Goodyear, these are pilots in the early stages of training on smaller aircraft. Phoenix airport officials say they are looking into trying to find a way to keep the tower operating, even if the FAA goes through with its threat, which would also close Tucson’s Ryan Airfield tower.

6 MARCH 29, 2013

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES Chapter 7 - Liquidation Ray’s Lumber & Supplies Inc., 246 W. Third St., Nogales. Principal: Raymundo Yepiz, president. Assets: $201,740.80. Liabilities: $229,415.90. Largest creditor(s): Citibank, Sioux Falls, S.D., $24,521.56; Allied Building Products, $24,482.00; and Chase c/o Viking Collection Service Inc., Phoenix, $22,387.03. Case No. 4:13-bk04067 ﬁled March 19. Law ﬁrm: Jerry S. Smith

Chapter 11 Business reorganization Juan Martinez Lira and Josephina Heredia Lira, 5950 S. Park Ave. #304. Principal: Juan Martinez Lira and Josephina Heredia Lira, joint debtors. Assets: $215,885.01. Liabilities: $26,989.21. Largest creditor(s): Berry Good Cars and Trucks LLC, $10,821.93, Case No. 4:13-bk-04049 ﬁled March 19. Law ﬁrm: C.R. Hyde

Chapter 12 Family Farm/Fisherman Reorganization Gladtime Farm, 10679 W. Highway 70, Pima. Principal: William Underwood, managing member. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $500,000 to $1 million. Largest creditor(s): Schedule not filed. Case No. 4:13-bk-04082 filed March 20. Law firm: Campbell & Coombs, Mesa

FORECLOSURE NOTICES BW Capital LLC 3425 E. Benson Highway 85706 Tax parcel: 140-05-0200 Original Principal: $175,000.00 Beneﬁciary: Everett Lewis Auction time and date: 10 a.m. June 11, 2013 Trustee: Title Security Agency of Arizona, 2730 E. Broadway, Suite 100

LIENS Federal tax liens Kencor III and Kencor III LLC, 2231 W. Ina Road. Amount owed: $61,878.33. Ventana Tire Brake & Auto Service Inc., 7441 S. Houghton Road. Amount owed: $18,493.44. Peter G. Schmerl PC, 105 E. Speedway. Amount owed: $6,231.00.

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

S.A.K. Electric & Plumbing Inc., PO Box 6606, Mesa 85216, against CRGE Tucson LLC, 6263 N. Scottsdale Road, Suite 145, Scottsdale; DND Neffson Co., General Growth Properties, PO Box 617905, Chicago 60661; and DC Builders & Development LLC, 3370 N. Hayden Road #123-739, Scottsdale. Property: 4500 N. Oracle Road, Toby Keith’s I Love This Bar & Grill. Amount owed: $64,254.20. Flooring Systems of Arizona, 3501 E. Golf Links Road, against Arizona Board of Regents, 1125 N. Vine Ave. #103 and Jones Lang LaSalle Americas Inc., c/o Citicorp North America Inc., 514 Sid Martin Road, Gray, Tenn. Property: 9060 S. Rita Road. Amount owed: $6,550.80. Essco Wholesale Electric Inc. Mesa Branch, 175 E. Corporate Place, Chandler, against DND Neffson Co. General Growth Properties GGP Tucson Mall LLC, 110 N. Wacker Drive, Chicago, and CRGE Tucson, 6263 N. Scottsdale Road, Suite 145, Scottsdale. Property: 4500 N. Oracle Road, Suite 370, Toby Keith’s I Love This Bar & Grill. Amount owed: $2,864.65.

Release of federal liens Cactus Auto Transport Inc., PO Box 90498, 85754 Seaver Franks Architects Inc., 2552 N. Alvernon Way A&M Personnel Services Ltd., 1661 N. Swan Road, Suite 100 Stay Flush LLC, 4759 E. Sunrise Drive IRI Sabino Springs Golf Course LLC, 9777 E. Sabino Greens Drive J-3 Construction LLC and Jerry M. Burns, 9420 E. Golf Links Road

Talk of economic development trumps national, ideological differences at mayors’ meeting By Keith Rosenblum Inside Tucson Business NOGALES, Sonora — A warning of sorts was sounded here and mayors representing most of Arizona’s population said they received the message a todo volúmen (full volume) and agreed with it. The states of Arizona and Sonora risk losing out on booming North American trade if they are unable to match the agility and amenities offered by others states along the 2,000-mile U.S.-Mexico border, the group was told by Ramón Guzmán, mayor of this burgeoning city of 300,000. “This is one area in which we need to be heard by Mexico City and Washington,” Guzmán said. “Now is the right time for us to say, in a single voice to our federal legislators, ‘Help us create the infrastructure to make our corridor successful.’” Guzmán, armed with data on borderwait times and employment, said the Nogales region should be the priority of U.S. and European firms looking to manufacture and assemble in Mexico and then sell the finished products both in Mexico and the U.S. He said 246 companies in Arizona and Sonora region now employ more than 105,000 workers whose output of $10 billion in goods is shipped equally south to other points in Mexico and north into the United States. While impressive, that number pales to the 917 companies in Baja California and California whose employment surprasses 240,000. Sonora’s economy has led much of Mexico’s in the last several years, growing by 7 percent in both 2011 and 2012. Unemployment is low as youth entering job markets opt for openings in aerospace, automotive technology and mining, in addition to the staples of the economy, agriculture and tourism. Guzmán as well as other speakers said Mexico needs to overcome the stigma associated with drug violence of recent years and the thorny issues associated with U.S. policies on immigration. Those views were affirmed by the Arizonans. Tucson Mayor Jonathan Rothschild said mayors need to hound federal officials to focus on regional trade issues such as border-staffing and infrastructure improvement or risk losing jobs abroad. “Why the mayors?” he asked. “Because our federal and state leaders are not delivering the right message.” Rothschild and Phoenix Mayor Greg Stanton, both of whom have focused on trade with Mexico, traveled together last year to Hermosillo, Sonora, then Mexico

Mayors from Tucson, Nogales and municipalities in Maricopa County discuss trade corridor issues at the March 22 Foro Binacional de Economía at Hotel Plaza. The event was hosted by Nogales, Sonora, Mayor Ramón Guzmán.

City and have been promised meetings this Spring with newly-elected President Enrique Peña Nieto. “We need to increase freight opportunities, increase trucking opportunities to and from Mexico and part of it needs to be quicker access through the border stops,” Stanton said. The forum in Mexico, Stanton quipped, “was absolute proof that Tucson and Phoenix can agree on something.” In a sign of deference to the event’s Sonora host, Arturo Gariño, mayor of the Arizona city of Nogales, brought all six members of the city council, along with the city manager, assistant city manager and others. “Our presence here demonstrates just how important the relationship is, just how dependent we are Sonorans,” Gariño said, also lamenting the long waits and oftbrusque conduct shown by U.S. officials to Mexicans, who, he said, spend millions of dollars daily at Arizona retailers. One of the sore points for Nogales, Sonora, has been a drastic decline in tourism because of time-consuming waits to enter the United States and the widely-held perception of danger because of the drug war. Those “misperceptions” need to be overcome, said Gariño, whose city is one-tenth the size of its cross-border neighbor in Mexico. “It is essential for all of us to work and help our sister city regain its tourism.” Added Gariño: “We have alignment of highways today. What we need now is alignment of politics.” The gathering was endorsed by the Maricopa Association of Governments (MAG), which briefed mayors before the trip. In attendance besides Rothschild and Stanton were mayors Marie Lopez-Rogers, Avondale; Jackie Meck, Buckeye; Jerry Weiers, Glendale; Georgia Lord, Goodyear; Thomas

Schoaf, Litchfield Park; Jim Lane, Scottsdale; Sharon Wolcott, Surprise; and Michael LeVault, Youngtown. The gathering, formally called the Foro Binacional de Economía included 300 people and was held at Hotel Plaza at the southern end of Nogales, Sonora. Before the meeting started the mayors toured Continental Automotive Nogales SA de CV, an 1,800-employee assembly plant that occupies 178,000 square-feet making high-tech components for automobiles. Its significance to the mayors: the automotive sector of Sonora’s economy, anchored by Ford Motor Co.’s plant in Hermosillo, now employs 22,000, a number expected to grow to 30,000 in three years. The automobiles, mostly for export to the U.S., are visible daily passing through Arizona. Those not familiar with the business deficiencies of border life received a tutorial from Roberto Moreno, general manager of Sonitronies, an affiliate of Collectron International Management Inc., a “shelter-plan” firm that brings U.S. and foreign companies to Mexico without requiring the companies themselves to set up Mexican operations. None of the large package express companies, such as FedEx, UPS or DHL offer next-day service to Nogales, Tucson or Hermosillo, he said, while they do offer it to areas on the California and Texas borders. Pointing to his phone, Moreno added, “If you want to know how business is going to be conducted in the future, watch the 20 and 30 year-olds. This is how. This is how they order parts. They want merchandise delivered now.” Another plea from Moreno was to the U.S. Department of State, which has cautioned U.S. tourists to stay away from Mexican border cities. “Take that travel alert off,” he said. The alert, he said, “means there are no tourists and Avenida Obregón and the whole border is marked as unsafe.”

InsideTucsonBusiness.com

MARCH 29, 2013

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given Tom Horton, current CEO of American, $20 million in severance. The plan was for Horton to be the board chairman of the combined carrier for up to one year after the merger. Doug Parker, currently CEO of US Airways, is to be the airlinesâ&#x20AC;&#x2122; CEO and take over as chairman after Horton.

American-US Airways merger OKd by bankruptcy judge Ryan Airfield tower still The judge overseeing American Airlinesâ&#x20AC;&#x2122; bankruptcy proceedings on Wednesday ap- slated to close, by May 5 proved a proposal for the airline to merge with Tempe-based US Airways. The approval is the first of several steps, including approval from federal regulators and the U.S. Department of Justice, which the airlines say they hope to have by the end of the third quarter this year. Despite his approval of the overall merger, U.S. Bankruptcy Judge Sean Lane in New York, rejected a provision that would have

The control tower at Ryan Airfield is among 149 on the Federal Aviation Administrationâ&#x20AC;&#x2122;s (FAA) final list to be closed by May 5 under the federal governmentâ&#x20AC;&#x2122;s automatic budget cuts called sequester. All of the closures involve airport towers that have been staffed by air traffic controllers under contract to the FAA and handle fewer than 150,000 aircraft operations per year. Officials at the Tucson Airport Author-

ity, which operates Ryan Airfield, 9698 W. Ajo Way, say the airport will remain open to flights with pilots coordinating their takeoffs and landings among themselves over a shared radio frequency as is the case at other general aviation airports in the Tucson region. Assuming the closure takes place, the only two airports in the region with towers staffed by air traffic controllers will be Tucson International Airport and DavisMonthan Air Force Base. Separately, the FAA is continuing to review the possibility of overnight closures of control towers at 72 larger commercial airports including Albuquerque, Chicago Midway, El Paso, Milwaukee, Sacramento and Reno. The tower at Tucson International is not on that list. The FAAâ&#x20AC;&#x2122;s portion of budget cuts that must be made by the end of the fiscal year (Sept. 30) totals $637 million.

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InsideTucsonBusiness.com

MARCH 29, 2013

NEWS

Hip new Aloft hotel readies for April 4 opening Employees — make that “talent” — of Tucson’s newest hotel property, Aloft, have begun preparing for the property’s opening next Thursday (April 4). Craig Martin, general manager of the new hotel, says the first step was immersing the talent into the brand and what guests should expect. The opening of the Aloft comes nearly 8½ years after parent company Starwood Hotels & Resorts had initially announced that Tucson would be one of the original sites for the concept, which was developed using the moniker “W Lite” in reference to the company’s W hotels, a luxury brand that emphasizes modern designs and technology. Part of the delay had to do with Starwood officials having specific ideas of what Aloft hotels should be. All of the original properties were built from the ground up but for a variety of reasons that couldn’t be done in Tucson. Martin said Tucson’s Aloft, 1900 E. Speedway at the southeast corner of Campbell Avenue and officially named Aloft Tucson University, is the third hotel in the chain that was renovated from a previous building. There are now more than 60 Aloft hotels in 10 countries around the world. In Tucson, the former Four Points by Sheraton — which originally opened in 1971 as the Plaza Hotel — was taken back to the basic seven story structure for the renovation that has resulted in 154 loft-like rooms, high-grade technology and other amenities the company hopes will make it a lively setting, including an outdoor swimming pool, a bar named w xyz, 24-hour fitness center and 1,723 square feet of flexible meeting space. Martin says the hotel is already taking bookings and will offer special rates from time-to-time for Tucsonans. But don’t expect to see discounts around graduation time for the University of Arizona. He says some nights in May are already nearly booked full.

Hailey Eisenbach

Inside Tucson Business

12 MARCH 29, 2013

INSIDE TUCSON BUSINESS

NEWS

Tucson Metro Chamber’s Outlooks event opens eyes to possibilities By Mike Varney Tucson Metro Chamber “We could be off OPEC oil tomorrow if the politicians would just listen.” That was just one profound statement made by energy expert, author and billionaire T. Boone Pickens at the Tucson Metro Chamber’s Outlooks event March 21 at Casino Del Sol’s Conference Center. Pickens headlined a half-day highly produced program of business intelligence that also featured speakers on the subjects of education, smart growth and healthcare and opened to an audience of nearly 500. Pickens mentioned multiple times that federal officials have a serious lack of understanding about energy issues. He underscored his position by reminding the audience that the Department of Energy was created about 40 years ago by the Carter Administration with the goal of moving the United States to energy independence — and that we still depend on OPEC oil. Pickens laid out a plan that would create a North American energy alliance among the U.S., Canada and Mexico, noting that Canada has more petroleum underground than Saudi Arabia and the U.S. has more than a 100-year supply of natural gas. Existing trade, friendly governments and easy transportation among the three countries would also help with price stability. Other highlights of Pickens’ presentation: • When asked if gasoline would ever get below $2.00 per gallon again, Pickens said he was doubtful that would happen. Mike Varney, Fred DuVal, T. Boone One reason is Pickens, and former Maryland Saudi Arabia. Gov. Parris Glendening. With about half diesel fuel. of the country • He backs development of all forms of unemployed, the ruling family, the House energy, but noted that we can’t supply of Saud, has to maintain oil prices of $50 homes and businesses with the items they per barrel or higher just to provide basic need by running trucks on solar or wind necessities to Saudi Arabian citizens. power. • Pickens noted that natural gas is Cathy Mincberg is the president and extremely plentiful in our country and CEO of the Center for Reform of School recommended that heavy duty trucks Systems in Houston. She also is a former convert to natural gas as soon as possible public school teacher, administrator and because of the reliable supply and the fact school board member. Mincberg spoke for that it is $2.00 per gallon cheaper than

Moderator Philip Dion of UniSource Energy, with Pickens.

40 minutes about common sense changes that can be made to improve public education. First, she said, “Everything a school district does must point to improving education.” Food service, transportation and a district’s physical plant must all have written, measurable goals that are centered not just on department operations, but how those operations affect education. Mincberg, who earned her doctorate degree in Educational Leadership and Cultural Studies, believes school districts could benefit from heightened levels of collaborations and coordination. She believes plans, goals, objectives and their metrics must be public so the taxpayer and parents can see what school districts are

doing to improve. She is a big proponent of privatizing every aspect of public education possible and actually did so in Houston, where food service and transportation were privatized. Both steps resulted in heightened efficiencies, lower costs and opportunities to move money saved in those areas to better teacher-student interaction. She downplayed the role of poverty and ethnic differences as reasons for student underperformance. To support her position she commented on a number of public school districts around the country that have successfully narrowed or eliminated student performance differences based on household income and ethnicity. Katie Mahoney, executive director of health policy for the U.S. Chamber of Commerce, explained the basic components of the Affordable Care Act (ACA), or Obamacare, to the audience of employers and business decision makers. She noted that no one understands everything in the 3,000-page bill despite the fact that it was passed three years ago. Jeff Stelnik, senior vice president of strategy, sales and marketing for Blue Cross Blue Shield of Arizona, informed the audience that healthcare premiums in Arizona are actually less than the national average. He said one of the outcomes of the ACA is that employers are now looking for

InsideTucsonBusiness.com

MARCH 29, 2013

NEWS “lean” benefits plans to meet the specifications of the federal requirements. At the same time, Stelnik said, there will be “upward pressure” on premiums to comply with the bill’s “essential benefits” provisions, new taxes and fees imposed by the bill and the “guaranteed issue” provision. He said he expects the percent of uninsured adults to drop from its current level of 20 percent down to 13 percent. James Beckmann, CEO of Tucson’s Carondelet Health Network, described the effects of diabetes and obesity on the need for increased healthcare services. He noted that one out of eight people in Tucson have diabetes and another one in eight have it but don’t know it. Beckmann recommended an immediate shift in thinking from caring for disease to preventing it through wellness programs. During Beckmann’s presentation the audience learned that in 2012 $2.7 trillion was spent on healthcare, which is 17 percent of the nation’s GDP. He noted that in 1980 the cost of healthcare was $1,100 per capita in the U.S. and that in 2012 that

number had grown to $8,100. Former Maryland Gov. Parris Glendening rounded out the afternoon with a presentation on shifts in demographics, energy consciousness and consumer preferences that are already shaping urban design and land use across the country. He is the current president of the Smart Growth America Leadership Institute in Washington, D.C. Glendening opened his comments by explaining to the audience that his organization’s mission is not to plan communities for other people but to provide the information, trends and case histories that help local planners get it right. He said smart communities are about smart use of available tax dollars and that all smart communities are consciously master-planned to incorporate all of the right ingredients.

Parris Glendening and retired bank executive Steve Banzhaf.

Contact Mike Varney, president and CEO of the Tucson Metro Chamber, at mvarney@tucsonchamber.org or (520) 792-2250.

PEOPLE IN ACTION

KAUKAHA WATANABE

NEW HIRES The Arizona Mining Association has hired Kelly Norton as president. Norton will oversee all operations, management and fundraising. Norton has more than 25 years of experience in government affairs, management, public relations, marketing and development. Since 2006, she also has worked as a consultant to various small businesses and non-profit organizations with experience in research,

political campaigns and government relations. Realty Executives Tucson Elite has hired Kaukaha Watanabe as an executive real estate agent. Watanabe was previously with Home Smart. Arizona State Museum has hired Patrick D. Lyons, Ph.D., as its new director. Lyons, an archaeologist, is the museum’s seventh director since its founding by the territorial legislature in 1893. He replaces Dr.

STEVE HOPKINS

Beth Grindell. Lyons has been serving as head of collections at Arizona State Museum since 2006 and as associate director since 2009. Previous to his work at the museum, Lyons was a preservation archaeologist at Archaeology Southwest in Tucson. Zmark on Target Promotions has hired Steve Hopkins as an independent contractor. He will assist businesses, sales people and entrepreneurs with marketing campaigns and

RANDY BOND

CAM TRAN

{YOUR NAME HERE} 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. promotional products. Chestnut Construction has hired Randy S. Bond as a partner and senior project manager. Originally from Hammond, Ind., Randy served with the U.S.

Army prior to beginning his career in construction. He owned and operated a successful construction company in Phoenix for several years before settling in Tucson in 1998. He has a bachelor’s degree

CHRISTINA ROSSETTI

LAURYN BIANCO

in business management from the University of Phoenix. In addition, he volunteers with the Arizona Builders Alliance where he was named Volunteer of the Year in 2012.

provides her with advanced skills for recommending solutions for maximum visual impact of marketing and promotional pieces.

ACCREDITATIONS

Arbonne International has promoted Christina M. Rossetti, MSW, to regional vice president/independent consultant. Arbonne is a 33 year old personal care, health and wellness company, producing Swiss formulated skin care and nutritionals available in

AlphaGraphics has announced that Cam Tran, a customer service representative, has successfully completed the advanced training workshop for “Paper, Ink, and Job Analysis.” This training

PROMOTIONS

the U.S., Canada, United Kingdom and Australia. ELECTIONS Lauryn Bianco has been elected to the governing board of the Community Food Bank of Southern Arizona. Bianco works for Community Partners of Southern Arizona. Bianco will serve a three-year term on the Community Food Bank.

Log on TODAY! www.InsideTucsonBusiness.com

14 MARCH 29, 2013

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ON THE MENU

ARTS & CULTURE

Scanning the menu in my search for Steak Russell

Southwest premiere wraps up Arizona Theatre Co. season

local athletic footwear executive Scott Ott I’m drawn to items on menus named is commemorated on the menu with the after individuals in the community. For “Ott,” featuring melted butter and five example, take the old Stoops Stout at exotic salts dusting the steak. “Scott ‘Mr. Gentle Ben’s Brewing Company. The rich Sneakers’ Ott absolutely loves and dark brew was a favorite of salt,” said McMahon, “and what mine during the reign of former better way to recognize him than University of Arizona head with the best salts available.” football coach Mike Stoops. What may be the fanciest While sports figures seem to be preparation on the menu, the the most likely people after whom “Bernal” showcases shallots, a restaurant names select meals mushrooms, bacon, and a port and beverages, there are a few wine demi-glace, named after Tucsonans whose names grace the banker and farmer Ray Bernal. dinner menu at McMahon’s Prime “He and I have been bosom Steakhouse, 2959 N. Swan Road, buddies for 30 years,” said McMaand there’s not a sports figure MATT RUSSELL hon, “and many consider this among them. Who are they? And preparation to be the best – so this how did they earn such coveted one’s for Ray.” spots on the menu? I sat down with owner The sixth style is, simply, the Oscar – Bob McMahon to get the scoop. named for the classic crabmeat, asparagus If you like your steak prepared with and hollandaise preparation, not for a brandy and green peppercorn sauce, order Tucsonan per se. However, McMahon told the “Ellsworth,” named after real estate me that it’s his favorite preparation, so executive Dan Ellsworth. “Dan used to go there must be a famous Oscar out there all the way to Bisbee for a certain Steak Au whose personality aligns with Bob Poivre,” recalled McMahon, “so we put one McMahon’s. Any suggestions? on the menu to save him the trip!” In my exhaustive research for this For some people, gorgonzola cheese is a column, I’ve scanned the entire lunch and must on steak, especially if you’re developer dinner menus at McMahon’s and can’t Joe Cesare, after whom the “Cesare” steak is seem to find the Steak Russell. Clearly, Mr. named. “Joe puts blue cheese on everything, McMahon, there must be a misunderI mean everything,” said McMahon, “and we standing. So for now, as a fellow sodium decided that if we’re doing a blue cheese lover, I’ll stick with the Ott. steak at the restaurant, it’s going to be gorgonzola, and it must be named after Joe.” Named for longtime Tucson businessContact Matt Russell, whose day job is man Joe Cristiani, who is now in the CEO of Russell Public Communications, at purified water business, the “Cristiani” is mrussell@russellpublic.com. Russell is also all about crimini mushrooms, garlic and the host of “On the Menu Live” that airs 4-5 parmesan cheese. “This is the way that Joe p.m. Saturdays on KNST 790-AM and he makes his steaks at home, and I figured if does the Weekend Watch segment of the it’s good enough for the Cristiani kitchen “Buckmaster Show” from noon-1 p.m. it’s good enough for ours,” said McMahon. Fridays on KVOI 1030-AM. With a decidedly exotic personality,

154 E. Sixth St. The exhibit will be up “Clybourne Park,” the final play in through Arizona Theatre Company’s 2012-2013 May 4. The gallery is open 11 a.m.-5 p.m. season is on stage April 6-27 at the Temple Tuesdays through Fridays and 11 a.m.-4 of Music and Art, 330 S. Scott Ave. A p.m. Saturdays. southwestern premiere, the Works in clay, metal and paint provocative play about race and by Curt Brill, Gary Swimmer, real estate examines the James Tisdale and others is up at delicate dance of social politics the Obsidian Gallery, 410 N. and conflict centered around a Toole Ave. in the Historic Depot. north Chicago household. It The gallery is open 11 a.m.-6 p.m. won a Pulitzer Price for drama Wednesdays through Saturdays in 2011 and a Tony Award for and 11 a.m.-2 p.m. Sundays. best play last year. Individual show tickets can be purchased online at www.arizonatheatre. org/ . HERB STRATFORD The long-anticipated next film from “Twilight” creator Stephanie Meyer arrives this weekend in the multiplexes. Entitled “The Host,” the The Tucson Museum of Art’s annual Crush fundraiser takes place next weekend story follows a young girl who is part with two separate events. One is the annual human, part alien after our planet is overrun by a new species. Time will tell if Crush Party in the courtyard of the museum, 140 N. Main Ave., on Friday night Meyer’s magic touch is intact after the multi-billion dollar juggernaut of her (April 5) featuring fine wine, food and art previous stories. under the stars. Then the next night, April Also out his weekend is the G.I. Joe 6, the Crush Gala takes place at Loews Ventana Canyon, 7000 N. Resort Drive, with sequel “Retalliation,” and the latest from Tyler Perry, “Confessions of a Marriage a gourmet dinner, wine, an auction and Counselor.” dancing. Contact the Tucson Museum of At the Loft Cinema, 3233 E. Speedway, Art or go to www.TucsonMuseumofArt.org the acclaimed documentary about Israeli for ticket information. intelligence officers, “The Gatekeepers” opens this weekend as does the film version of “On The Road,” the famous Two art exhibitions of note. beat-generation defining novel by the late “Origins,” a one-person show by Jack Kerouac. Tucsonan Katherine Josten is an installaContact Herb Stratford at herb@ tion project that was started in the 1980s ArtsandCultureGuy.com. Stratford teaches and involves the suspension of large Arts Management at the University of Arizona. His black-and-white canvases from the high column appears weekly in Inside Tucson Business. ceilings of the Davis Dominguez Gallery,

Film

Wine and art

Art

4/30/2013.

InsideTucsonBusiness.com

MARCH 29, 2013

PROFILE FOCUS ON NON-PROFITS

Artists help homeless through Dragonfly Gallery By Christy Krueger Inside Tucson Business Cultures around the world revere the dragonfly as a figure that supports and protects children. Thus, the delicate flying insect was chosen by Amity Foundation to represent its latest venture: Dragonfly Village, a 12-building, 30-unit community on the east side that will house homeless families and individuals and provide daily living support services. The village will occupy 3.8 acres of the approximately 60-acre Amity Circle Tree Ranch, a former home of the Westinghouse family near Houghton and Tanque Verde roads. The transitional housing program will receive referrals from shelters and other non-profits, and residents can BIZ FACTS stay up to 24 months before they’re expected to find permanent housing. Since 1969, 146 E. Broadway Amity has provided (520) 628-3164 assistance services such as housing and substance abuse programs. To help fund the new village, Amity dove 10500 E. Tanque Verde Road into a major capital(520) 749-5980 raising http://circletreeranch.org campaign, highlighted by the 2011 opening of Dragonfly Gallery, 146 E. Broadway. The turn-of-the20th-century building that now houses the gallery required a significant amount of renovation. “It was the original Village and the campaign and to provide carriage house when the main source of operating expenses for the village,” he transportation in Tucson was by horse and added. The non-profit gallery features carriage. We chose downtown because we rotating exhibits by mostly local artists who wanted to give back to the community and give 50 percent of their sales back to be part of the redevelopment,” said Ray Dragonfly. Clarke, vice president and chairman of the A selection of encaustic and acrylic board for Dragonfly. paintings by Oro Valley artist Joe Bourne “The purpose of the gallery is to help will be next in the rotation. with our information about Dragonfly “Joe is part of the new exhibit starting

Dragonﬂy Village Dragonﬂy Gallery

Amity Foundation Circle Tree Ranch

the later part of April,” Clarke said. “We’re excited about having Joe.” Also a well-known jazz and R&B vocalist, Bourne will perform a few selections during his opening reception from 4-6 p.m. April 25 and his work will be on display through Labor Day. Photographer Rod Mullen will be featured simultaneously with his collection of color photographs from San Miguel de Allende, Guanajuato state in central Mexico. Dragonfly is also reaching out to the community and raising awareness by participating in Second Saturdays Downtown. Blues violinist Heather Hardy, a regular performer at the gallery, will appear April 13. Raising resources is one of Clarke’s main responsibilities. “To date we’re about $400,000 away from our goal,” which is $5.3 million. Utility and site work for Dragonfly Village are finished, and vertical construc-

tion will begin once all funds are in place. Early on in the campaign, a generous gift came in from former Amity board member Frances McClelland. Co-owner of Shamrock Foods Co., McClelland left $750,000 in her will for the project through Shamrock’s charity arm, Emerald Foundation. Another former Amity board member is generously helping with Dragonfly’s current fundraiser — raffling of a one-of-akind $50,000 crystal chandelier that was created for Empress Joséphine of France in the early 19th century. “An individual in Wisconsin who owned it — he and his wife donated the chandelier to the gallery. We want to sell 1,000 tickets at $100 each to raise $100,000,” Clarke reported. Tickets for the May drawing are available for purchase through the gallery. “The last nail can be hard,” Clarke said of the final campaign stretch. But he’s confident that with the continued support of artists, art buyers and the downtown community, Dragonfly Village will soon become a reality.

16 MARCH 29, 2013

INSIDE TUCSON BUSINESS

MEDIA

Ratings: KOLD wins, KGUN and Fox 11 up, NBC takes KVOA down By David Hatfield Inside Tucson Business If you recall any unusual weather disturbances in February, they might have been caused by people rushing to grab their remote controls to switch TV channels. At least that would be the case judging from the latest Nielsen TV ratings for the Tucson market. NBC, after a promising start to the 2012-2013 season last fall and November suggesting its ratings woes were behind it, suffered a colossal ratings collapse during the February “sweeps.” It was historic on a national scale. NBC dropped below Univision among targeted 18-49 year-old viewers in prime time, which was the first time a major English language broadcast network finished in fifth place. The fall took NBC affiliates across the country with it, including Tucson’s KVOA 4. It also spread to other demographics. Newscasts, which are the bread-and-butter of affiliated local stations, target a slightly older audience than prime time and in the 25-54 demographic, KVOA saw those ratings drop dramatically nearly across the board. Only the early morning “Tucson Today,” from 5-7 a.m. weekdays, managed to maintain its audience numbers from November and was up slightly from February 2012. KVOA’s losses directly translated into gains for other stations in the Tucson market. KOLD 13 had first-place ratings finishes for every one of its weekday newscasts; early morning, noon, 4 p.m., 5 p.m., the network newscasts at 5:30 p.m., 6 p.m. and 10 p.m. In most cases they were dominating wins. At 5 p.m., for example, CBS affiliate KOLD averaged 12,648 viewers ages 25-54, which was about 800 more than were watching both KGUN 9 and KVOA combined. And at 10 p.m. weekdays, KOLD averaged about 5,300 more viewers than second-place KGUN with KVOA about 7,300 viewers 25-54 behind that. ABC affiliate KGUN’s numbers also were up in most time periods, giving it secondplace finishes at 5 p.m., 6 p.m. and 10 p.m. weekdays. The station can also lay claim to a No. 1-rated newscast: 10 p.m. Sunday nights. Similar to the situation for KOLD at 5 p.m. weekdays, KGUN’s audience at 10 p.m. Sundays averaged 14,280 viewers 25-54 in the February ratings, about 400 more than KOLD and KVOA combined. Fox affiliate KMSB 11 saw its ratings go up for its 9 p.m. newscasts. At the risk of sounding like more piling on, the average of 7,300 viewers ages 25-54 watching KMSB

at 9 p.m. weekdays was about 1,600 more than were watching KVOA an hour later. These latest Nielsen ratings released Monday, were from surveys taken Jan. 31 through Feb. 27. And TV stations don’t have much time to relish their victories or wallow in their losses, Nielsen is back again from the May “sweeps,” which start in less than four weeks, on April 25, and will run through May 22.

TUCSON TV NEWS RATINGS Viewers 25-54*

Household market share *

Feb. 2013

Nov. 2012

Feb. 2012

Feb. 2013

Nov. 2012

Trend*

Feb. 2012

5-7 a.m. Monday-Friday KOLD 13

News 13 This Morning

1.6

1.8

1.2

18.7%

17.4%

15.9%



KVOA 4

News 4 Tucson Today

1.4

1.1

15.7%

13.6%

15.9%



KGUN 9

Good Morning Tucson

0.8

1.0

0.9

13.0%

14.5%

14.6%



7-9 a.m. Monday-Friday KVOA 4

Today Show

1.7

2.2

19.3%

19.5%

20.8%



KGUN 9

Good Morning America

1.6

1.9

1.7

12.3%

15.6%



KOLD 13

CBS Early Show

1.4

0.4

1.3

11.1%

4.9%

11.3%



KMSB 11

Fox 11 Daybreak

0.5

0.3

2.6%

2.0%

2.3%



0.1

0.3

0.1

1.2%

4.0%

2.0%



11 a.m. Monday-Friday

Names in news

KGUN 9

Belo Corp.’s highest ranking executive in Tucson, Robert Canales is leaving his position as director of sales for the company’s KMSB Fox 11 and KTTU My 18 as of next Wednesday (April 3). He is heading back to his home town, San Antonio, Texas, to be director of sales for three stations owned by the Sinclair Broadcast Group: WOAI, the NBC affiliate; KABB, the Fox affiliate; and KMYS, the CW affiliate. Prior to coming to Tucson in May 2010, Canales worked for Belo in Houston for two years and before that was a local and national sales manager for Sinclair in San Antonio when it owned two stations there. It acquired WOAI last year. Belo has no general manager in Tucson. Instead the director of sales reports to “Nick” Nicholson, general manager of Belo stations in Phoenix and one time general manager in Tucson. Since February 2012, the operations of KMSB and KTTU has been handled by Raycom Media’s KOLD 13 under a shared services agreement. In an effort to stand out from the competition KVOA 4 has hired Matthew Schwartz as an investigative reporter. He comes from Tampa, Fla., where he won four Emmys as an investigative reporter for the market’s ABC affiliate, WFTS, before he left that job in 2009 after four years and went to work in public relations. Prior to going to Florida, Schwartz was an investigative reporter for 10 years at WWOR New York and worked at stations in Cleveland and Richmond, Va. He touts as some of his most memorable reports, a prison interview with “Son of Sam” serial killer David Berkowitz and covering all four of mobster John Gotti’s trials.

Noon Monday-Friday

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

KMSB 11

Morning Blend

KOLD 13

News 13

1.1

0.7

0.6

15.1%

11.9%

17.8%



KVOA 4

News 4 Tucson

0.2

0.6

0.8

11.7%

15.8%

14.3%



4 p.m. Monday-Friday KOLD 13

News 13

1.3

0.9

0.6

10.9%

7.7%

6.5%



KVOA 4

News 4 Tucson

0.3

0.6

1.0

7.8%

8.7%



5 p.m. Monday-Friday KOLD 13

News 13

3.1

2.0

2.1

18.0%

11.9%

16.2%



KGUN 9

KGUN 9 News

1.7

1.6

1.0

15.3%

15.2%

11.9%



KVOA 4

News 4 Tucson

1.2

1.3

1.4

13.5%

12.3%

14.1%



5:30 p.m. Monday-Friday KOLD 13

CBS-Scott Pelley

3.0

1.9

17.1%

11.5%

15.1%



KGUN 9

ABC-Diane Sawyer

2.0

1.6

1.1

15.0%

12.8%

11.1%



KVOA 4

NBC-Brian Williams

1.0

2.3

13.5%

12.3%

14.1%



6 p.m. Monday-Friday KOLD 13

News 13

1.9

1.6

2.7

11.4%

8.7%

11.0%



KGUN 9

KGUN 9 News

1.7

1.3

0.9

9.8%

10.7%

7.5%



KVOA 4

News 4 Tucson

1.1

1.5

1.7

11.3%

9.5%

11.9%



9 p.m. Monday-Friday KMSB 11

Fox 11 News

1.8

1.6

1.4

5.8%

4.3%

3.8%



KWBA 58

KGUN 9 News-CW

0.3

0.2

0.7%

0.9%

0.6%



10 p.m. Monday-Friday KOLD 13

News 13

4.5

3.5

4.5

22.2%

18.0%

22.1%



KGUN 9

KGUN 9 News

3.2

1.9

2.4

12.2%

12.3%

10.8%



KVOA 4

News 4

1.4

3.1

13.2%

13.4%

16.2%



0.7

0.1

0.4

4.1%

2.4%

3.7%



9 p.m. Saturday KMSB 11

Fox 11 News

10 p.m. Saturday KOLD 13

News 13

2.7

1.6

1.9

15.0%

12.9%

15.8%



KGUN 9

KGUN 9 News

1.0

1.4

1.0

5.9%

8.5%

7.0%



KVOA 4

News 4 Tucson

0.8

1.9

2.1

10.0%

10.4%

14.2%



0.7

2.1

1.8

4.0%

6.3%

5.1%



9 p.m. Sunday Fox 11 News

10 p.m. Sunday KGUN 9

KGUN 9 News

3.5

1.9

2.5

16.7%

11.2%

11.6%



KOLD 13

News 13

2.1

3.8

3.1

20.0%

17.1%

20.0%



KVOA 4

News 4 Tucson

1.3

1.6

1.9

11.6%

9.9%

13.0%



Source: Nielsen Station Index, February 2013 (Survey dates: Jan. 31-Feb. 27, 2013, Oct. 25-Nov. 21, 2012; and Feb. 2-29, 2012.) * Viewers: Each whole rating point represents an estimated average of 4,080 viewers ages 25-54 (February 2013 and November 2012) and 4,230 (February 2012). * Household share: Market share of all households watching TV. * Trend: Year-over-year changes in viewers 25-54 of at least 15% or 0.3 ratings point.

InsideTucsonBusiness.com

MARCH 29, 2013

GOOD BUSINESS GETTING FIT

Making lifestyle changes to help reduce medical costs According to the U.S. Centers for Disease Control and Prevention (CDC), more than 79 million people and 50 percent of adults over 65 have prediabetes and are at risk for developing type 2 diabetes. Diabetes contributes to a number of chronic conditions. According to the CDC, diabetes is the seventh leading cause of death in the United States and a leading cause of heart disease and stroke. Healthcare for people with diabetes is 2.3 times higher than costs for those without the disease. The total annual estimated cost of diabetes in the U.S. is $174 billion. Preventing diabetes with the YMCA’s Diabetes Prevention Program is imperative to reducing healthcare costs and improving participants’ overall health. The YMCA of Southern Arizona began offering the Y Diabetes Prevention Program in 2011 and has been chosen as one of 17 Y’s across the nation to demonstrate its ability to deliver the YMCA’s Diabetes Prevention Program as a cost savings to the Medicare program. This project is expected to reduce three-

year Medicare expenses by $4.2 million and sixyear Medicare expenses by $53 million. Research has shown that programs like the YMCA’s Diabetes Prevention ProDANE WOLL gram can reduce the incidence of diabetes among Medicare-age individuals by up to 71 percent, and has been identified as a promising approach for lowering Medicare expenditures. The YMCA’s Diabetes Prevention Program is an evidence-based program that helps individuals at risk for diabetes adopt and maintain healthy lifestyles to reduce the risk of developing type 2 diabetes. Overweight adults at high risk for developing type 2 diabetes, or who have been diagnosed with pre-diabetes, engage in a one year group-based lifestyle intervention to help them avoid the often devastating effects of diabetes.

The YMCA’s Diabetes Prevention Program has been researched and tested for more than a decade. The National Institute of Health (NIH) conducted a clinical trial that showed a lifestyle change program yielding modest weight loss (5 to 7 percent) and increased physical activity (up to 150 minutes per week) can reduce the incidence of type 2 diabetes by nearly 60 percent and over 70 percent among the Medicare-age population. The YMCA’s Diabetes Prevention Program is directly translated from the NIH clinical study to be delivered in a group format led by a trained YMCA Lifestyle Coach.

Since 2010, the YMCA’s Diabetes Prevention Program has reached more than 6,000 participants across the United States. The YMCA of Southern Arizona is at the forefront of a changing health care culture that will rely on a multi-disciplinary approach, using public, private, government, and non-profit entities, to deliver quality preventive care.

Contact Dane Woll, president and CEO of the YMCA of Southern Arizona, at DaneW@tucsonymca.org. His Getting Fit column appears quarterly and is next scheduled to appear in the May 31 issue.

BIZ FACTS

YMCA of Southern Arizona Diabetes Prevention Program Contact Vivian Cullen, Director of Community Outreach (520) 623-5511, ext. 218 vivianc@tucsonymca.org

TUCSON INTERNATIONAL AIRPORT FEBRUARY PASSENGER STATISTICS Airline passenger traffic through Tucson International Airport was down 10.2% in February from February 2012 on available seat capacity from airlines that dropped 13.9% to an average of 5,757 outbound seats per day from 6,689 per day in February 2012. This table shows each airlines’ passenger totals and market share for February compared with February 2012 and the totals for the first two months of each year..

Airline

February 2013 February 2012 Change Passengers Market Passengers Market Passengers % Share

Non-stop destinations

Southwest

95,085

34.3%

102,363 33.2%

-7,278

-7.1%

74,562 24.2%

-5,363

-7.2%

40,171 13.0%

+2,545

+6.3%

-4,762

-13.3%

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

American

69,199

25.0%

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

United

42,716

15.4%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways

31,132

11.2%

35,894 11.6%

29,544

10.7%

28,965

9.4%

+579

+2.0%

3.3%

13,020

4.2%

-3,840

-29.5%

13,300

4.3%

-13,300

-100%

Phoenix

Delta

Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska

9,180

Seattle

Other Frontier Airlines ended service as of May 18 , 2012

Monthly total

276,856

308,275

-31,419

-10.2%

2013 total

543,152

600,004

-56,852

-9.5%

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

P M JU

IT’S A GREAT DAY FOR KIDS TO GET A

ON SUMMER

HEALTHY KIDS DAY® is THE day for kids to get a jump on a summer full of activities –from sports to crafts to learning–that will keep them growing and achieving. Join us and jump-start a journey that lasts kids a day, a summer and, we hope, their entire future.

HEALTHY KIDS DAY

A YMCA Initiative YMT 13-20-119

JOIN US APRIL 6

10:00am– 2:00pm Mulcahy YMCA at Kino Community Center 2805 E. Ajo Way

520.795.9725 tucsonymca.org YMCA logo and HEALTHY KIDS DAY are registered trademarks of YMCA of the USA. These materials do not imply endorsement or recommendation of any particular product or service by the YMCA.

18 MARCH 29, 2013

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Financial opportunity abounds for 40s or younger If you’ve been reading financial headlines the past five years, you may be wondering how the world hasn’t ended yet. It’s been a seemingly endless stream of doom and gloom from the housing bubble, to the bailout, to the crumbling Eurozone, to an impending U.S. debt crisis, and so on. Nobody could blame you for lacking confidence when it comes to your financial future. According to a Pew Research study released in October last year, that’s exactly what is happening. Almost 40 percent of all adults say they are not confident in their financial future. This is actually higher than the 25 percent who answered that way in March of 2009 at the bottom of the stock market’s trough. Digging further into the studies, what is most shocking is the generational change in who is most worried. In 2009, Baby Boomers were the most concerned, which makes sense because they were nearing retirement. Remarkably, in the 2012 survey, it is adults in their 30s and early 40s, Generations Y and Z, who are now most concerned. Nearly half of this group, 49 percent, says they’re either “not too” or “not at all confident” they will have enough to live on in retirement. Many companies have abandoned traditional pension plans and adopted 401(k)s and other similar plans that put the responsibility of saving on the individual. Additionally, many in this age group are no longer confident that government programs such as Social Security and Medicare will be there to help them in retirement. Combine these factors with a volatile stock market and decreasing home equity, and it starts to make sense why young people would be more worried. This is not how it needs to be. Young professionals have a spectacular opportunity and should be the least concerned of any age group. The power of time is tremendous and by focusing on a longterm plan, these individuals can greatly increase their odds of a successful financial future. The catch is that you have to spend less than you make and save the difference. This may sound easy, but the pitfall for most people is that they spend as much or more than they earn if they don’t put thought into a budget and pay themselves first. I have seen school teachers follow this principle over their lives, and be far more financially successful than folks making a million dollars a year living paycheck to paycheck. Remember every little bit helps.

One of the most frequent comments I hear through working with 401(k) plan participants and other young people just beginning to save is that they can only afford to save a little, so why SAM SWIFT bother? Again, this is where the power of time comes in. Saving $20 per paycheck now can be the equivalent of needing to save $50 per paycheck in 10 years to make up the difference. Reduction of debt, by the way, is equivalent to saving in this planner’s eyes, particularly if you’re focusing on knocking down consumer and other high-interest debt first. Besides saving, the most important thing young people can do is avoid the Big Mistakes. A well thought out savings plan can be quickly derailed by spending too much, chasing hot stock tips, trying to time the market, etc. Younger individuals have access to this incredibly powerful engine — the stock market — that has historically doubled investments every eight to nine years, on average. Every time you deviate from a well thought out long-term investment plan, you put that at risk. There are two good recent examples of this: 1. Late 1990s excitement leading to an over-allocation in tech stocks right before the crash; 2. “End of the world” headlines dictating strategy, leading investors to bail on the market during the 2009 bottom. Both of these are related because, in both cases, investors let media hype drive their investment decisions. Remember there is a lot of good market and economic information available, but rarely is that information actionable as it relates to your specific long-term plan. Putting together a plan and avoiding the Big Mistakes is easier said than done, but is very possible. Younger generations have valid reasons to be concerned about retirement, but by taking advantage of the opportunity in front of them, there is every reason to be confident in their financial future.

Sam Swift, CFA, is director of TCI Wealth Advisors’ Aspire personal finance program aimed at professionals under the age of 45. Information about the program is online at www.ASPIREbyTCI.com .

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

Company Name

Symbol

Mar. 27 Mar. 20 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.02 0.07 18.46 47.46

0.02 0.07 18.89 47.18

0.00 0.01 -0.43 0.28

0.02 0.01 9.56 35.20

0.08 0.51 20.09 48.01

8.49 4.01 2.58 12.23 62.60 8.71 103.18 22.14 62.24 4.04 25.10 44.48 41.75 46.73 48.96 17.08 106.64 35.13 54.98 16.59 78.98 72.35 24.39 33.37 31.75 69.64 75.17 210.89 35.67 65.47 6.64 47.79 35.66 22.10 46.58 33.11 1.24 41.78 38.19 43.70 63.81 41.73 41.62 47.25 54.65 69.90 14.90 20.33 58.41 57.83 26.34 50.15 50.67 16.03 13.20 47.42 43.95 69.06 21.13 35.08 56.63 32.33 140.84 17.38 16.66 33.78 74.78 47.24 36.97 13.69 24.99

8.54 4.26 2.56 12.78 62.29 9.56 102.34 23.07 62.63 4.25 24.83 46.09 40.98 44.97 49.10 17.19 103.08 34.58 55.15 17.07 79.61 73.38 25.43 33.24 31.79 68.88 74.70 215.06 36.28 65.17 6.71 49.12 35.32 21.57 46.76 31.87 1.28 43.40 38.41 44.01 62.57 42.55 40.02 48.10 54.55 68.64 16.17 21.38 57.00 58.30 25.27 50.73 52.30 16.10 12.79 47.74 42.51 68.52 20.52 35.06 56.36 32.50 139.13 17.01 17.23 33.93 72.99 46.02 37.44 14.44 25.44

-0.05 -0.25 0.02 -0.55 0.31 -0.85 0.84 -0.93 -0.39 -0.21 0.27 -1.61 0.77 1.76 -0.14 -0.11 3.56 0.55 -0.17 -0.48 -0.63 -1.03 -1.04 0.13 -0.04 0.76 0.47 -4.17 -0.61 0.30 -0.07 -1.33 0.34 0.53 -0.18 1.24 -0.04 -1.62 -0.22 -0.31 1.24 -0.82 1.60 -0.85 0.10 1.26 -1.27 -1.05 1.41 -0.47 1.07 -0.58 -1.63 -0.07 0.41 -0.32 1.44 0.54 0.61 0.02 0.27 -0.17 1.71 0.37 -0.57 -0.15 1.79 1.22 -0.47 -0.75 -0.45

7.97 0.36 1.48 6.72 50.95 5.30 78.21 11.20 53.12 2.97 14.97 24.61 28.09 20.71 22.19 12.40 81.98 32.05 43.08 8.42 60.76 50.27 13.80 30.54 21.38 46.37 52.21 181.85 27.10 53.38 3.94 30.83 27.96 6.46 41.35 20.98 1.07 23.48 24.76 38.14 54.32 32.31 33.93 24.31 41.11 56.59 14.20 7.63 49.03 38.63 14.73 33.03 38.40 6.25 7.76 39.01 25.77 54.68 14.04 26.06 33.62 17.45 104.08 15.98 7.23 28.26 57.18 28.53 29.80 8.00 17.45

10.45 4.27 3.13 12.94 64.79 10.57 104.25 27.95 62.86 4.93 25.45 47.92 42.00 45.13 50.59 17.21 105.97 43.43 55.35 17.09 89.98 74.62 25.56 43.65 37.74 71.45 74.87 215.90 37.70 68.41 6.72 51.00 38.62 21.79 55.25 32.10 1.81 43.90 39.98 44.78 62.83 42.78 41.84 48.50 55.50 71.25 37.46 21.97 59.34 58.34 25.66 50.93 80.54 16.32 12.84 47.29 43.17 68.87 20.88 35.73 57.85 32.95 141.78 43.80 17.33 35.46 77.60 46.33 38.20 14.50 25.86

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

InsideTucsonBusiness.com

MARCH 29, 2013

INSIDE REAL ESTATE & CONSTRUCTION

MPA Wild Ride shifts to tourism-themed tour By Roger Yohem Inside Tucson Business The economic value of tourism, hospitality and sports will be the fast-moving theme of the 2013 Wild Ride presented by the Metropolitan Pima Alliance (MPA). The April 30 event will convene at 11 a.m. at Hi Corbett Field, 700 S. Randolph Way, for a tour of important tourism-related sites in the region, wrapping up at 5 p.m. “This year’s MPA Wild Ride is an effort to promote the profound positive impact of tourism in our community. We will showcase the economic value of this multi-billion dollar industry,” said MPA executive director Amber Smith. Following the economic “pitch” of Hi Corbett Field, the educational and networking tour will hit sites including Pima County’s Kino Sports Complex, Tucson International Airport, and the touristy Barrio Brewery near downtown. Attendees will travel aboard tour buses with hosts narrating the sites and development activities along the designated route. The Wild Ride will stop for lunch at a “sit down” venue featuring a speaker that Smith says has yet to be determined. She emphasized the Wild Ride is open to everyone, offering an opportunity to meet and network with elected officials, government staff, business leaders, community activists and MPA directors and members. The Wild Ride is limited to 250 attendees. The basic ticket price is $100, with sponsorships and other packages available. Register online at http://mpaaz.org.

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

TUCSON REAL ESTATE

3/18/2013

3/11/2013

$158,250 4,889 424 421 266

$159,750 4,938 427 478 224

Source: Long Realty Research Center

Last year’s MPA “Wild Riders” included, from left: Duane Krause, Ginger Switzer, Courtney Tejada, Amber Smith and Becky Gordon.

Realtors’ Open House As the spring home-buying season swings into gear, almost half of all buyers use open houses to narrow their choices and find their dream home. Potential buyers will have the opportunity to do just that April 20 and 21 when the Tucson Association of Realtors participates in a Nationwide Open House Weekend. Throughout the Tucson region, real estate agents will hold open houses all weekend and be available to answer questions about market conditions. “This event is a great way for buyers to get an idea of what they can afford and what kinds of homes are available. It’s also a chance for sellers to market their home and attract potential buyers,” said Philip Tedesco, CEO of the Realtors association. Over the last 12 months, the median sales price of a home in the Tucson region has gained 19 percent to $149,000. Since February 2012, the number of days a home is on the market has dropped by 25 percent,

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

Current

Last Week

3/26/2013

One 12 Month 12 Month Year Ago High Low

3.50% 3.625%APR 3.63% 3.75%APR 4.95% 4.95% 3.38% 3.00% 3.25%APR 3.00% 3.25% APR 4.22% 4.22% 2.75% 2.63% 2.875%APR 2.63% 2.875% APR 2.87% 2.87% 2.63%

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.

according to the Realtors group. To view open houses, go the the Realtors’ website — www.tarmls.com — and click on the Open House search.

Raintree Apartments sold Los Angeles-based Summit Equity Investments has purchased Raintree Apartments, 6450 E. Golf Links Road, for $9.2 million. Built in 1983, the 10-acre site was sold by Thompson Michie Associates, Salt Lake City. The Class B property has 364 units in 20 two-story buildings. The complex features a pool and spa, clubhouse and fitness center, and gated access. Art Wadlund, HendricksBerkadia, handled the transaction and said the complex was about 90 percent occupied at the time of sale. Thompson Michie Associates had owned the complex for about 20 years and it was its only property in Tucson.

Sales and leases • Campbell Tucson Retail LLC, doing business as Dunkin Donuts, purchased property at 2553 N. Campbell Ave. for $575,000 from the Velasquez Family Trust, Sciotto Family Trust, and Colson Family Trust. The site has a 1,700 square foot building on 17,596 square feet of land. The transaction was handled by Rick Borane, Volk Company Commercial Real Estate. • Sylvia and Henry’s Corporation purchased 5250 E. 22nd St., former site of Jack’s Barbeque, for $390,000 from Three B’s Investments, represented by Debbie Heslop, Volk Company Commercial Real

Estate. The property consists of a 2,553 square-foot building on 17,000 square feet of land. • National Association of Letter Carriers Branch #704 purchased 2950 N. Country Club Road for $333,000 from Holben & Associates and John Martin Sr. Trust, represented by Buzz Isaacson, CBRE. The buyer was represented by James Robertson Jr., Realty Executives. • Aguirre Enterprises leased 20,364 square feet at 3850 E. 44th Street from CJ Southwest Property Partners. The transaction was handled by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services. • Trane U.S. leased 16,795 square-feet at 2155 N. Forbes Blvd., Suite 104, from Forbes Tucson LLC, represented by Rob Glaser, Picor Commercial Real Estate Services. • AAA Old Pueblo Moving and Storage leased 10,000 square feet at 845 E. Ohio St., Suite 109, from 845 Ohio LLC, represented by Brandon Rodgers, Russell Hall and Stephen Cohen, Picor Commercial Real Estate Services. The tenant was represented by Rob Fischrup, Vast Commercial. • Record Energy Concepts leased 3,750 square feet at 3837 E. 37th Street from Bob’s Thirty-Seventh Street Property LLC, represented by Jeff Zellet, Picor Commercial Real Estate Services.

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

20 MARCH 29, 2013

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Timing not right for Pedicone to resign This week’s Inside Tucson Business editorial deals in part with the facts of the predicament that lies ahead at Tucson Unified School District (TUSD) in the wake of John Pedicone’s resignation that takes effect June 30. I hope you’ll indulge me in the more emotional side. I went to the March 13 news conference where Pedicone and Governing Board President Adelita Grijalva announced his resignation. He listed DAVID HATFIELD accomplishments of which he and the TUSD team can rightfully be proud. What I’m having trouble buying is his line: “The timing is right.” Timing is right for what? Not for gaining momentum on the accomplishments that are only beginning to get traction. Pedicone didn’t need the TUSD job when he took it in December 2010. He already had an impressive résumé as an administrator and academic. Pedicone spent 22 years in Flowing Wells Unified School District. Under his leadership the high school was ranked No. 1 in the state and the district’s newest elementary school was named an A+ School in 2002 by the Arizona Department of Education, an award won by every school in that district. After his retirement in 2004, Pedicone went on to be the master’s degree program coordinator for the University of Arizona’s College of Education and was vice president of the Southern Arizona Leadership Council. He served on the state Board of Education, on numerous other boards and committees at the state level, was active in Arizona School Administrators and involved in North Central Association accreditation programs. He also found time to be involved in the Susan G. Komen Race for the Cure, United Way, Reading Seed, YMCA, Hands Across the Border and others. When Pedicone was named TUSD superintendent, I wondered why. He insisted he wanted to try to help the community where he has lived since 1982. It wasn’t something he would do for more than about five years, tops. Not long after he took the job it became clear that it was taking a toll on him. He admitted that he had not anticipated the intransigence of some people in the district hierarchy who refused to speak to one another or even try to come together for a common goal. But he never lost his down-to-earth attitude and, no matter what someone might say about TUSD, he always talked about the pride in the work of educators serving the best interests of students. Pedicone earned performance bonuses each of the two years he was with TUSD, but he returned the first year’s back to the general fund and gave the second year’s bonus to the Educational Enrichment Fund. Pedicone is leaving of his own volition, but Grijalva may have inadvertently indicated the tipping point to his decision when she called TUSD a major employer. TUSD’s first responsibility is to provide the best education possible for the children of Tucson. The Arizona Auditor General this month released its annual report showing TUSD squanders more money outside the classroom than other districts. Pedicone has vowed to help whack $17 million to balance TUSD’s budget before he leaves. He’ll do it because it has to be done, but he’ll also fight for furthering student achievement all the way. I suspect the school board won’t. Pedicone could have done so much more.

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

EDITORIAL

It’s up to us to make change Elections have consequences. That’s been attributed to President Obama who said it to push his agenda after he won his first presidential election in 2008. Beyond a political agenda or mandate, there are other consequences that can befall an electorate after an election. As example, take what’s happened to a couple of educational institutions in Tucson just since November. Pima Community College is in danger of losing its accreditation from the Higher Learning Commission of the North Central Association of Colleges and Schools after a January investigation of complaints filed last year. The claims include sexual harassment and inappropriate behavior by former chancellor Roy Flores, a lack of honesty from interim chancellor Suzanne Miles, a hostile work environment, high turnover of administration, violations of procurement policies and making “an elemental change in the mission of the college” by requiring an entrance examine without thorough discussion or notice to the accrediting agency. At the root of all these complaints lies a lack of leadership from Pima College’s elected governing board and the failure to “uphold its responsibility to conduct its work ethically, honestly, and in the best interests of the college, its employees and its students,” according to the commission’s report. Meanwhile, Tucson Unified School District (TUSD) is looking to find its sixth superintendent in the last decade. That alone is an indictment of the school board but it apparently failed to register with its president Adelita Grijalva when she said it at the March 13 news conference where John Pedicone announced his resignation, effective June 30 after just 2½ years on the job. Indeed, as the leader of the three-member majority on the five-member school board, Grijalva more than anyone else could have prevented Pedicone’s departure. But her definition of leadership isn’t about setting policy for direction for the educational organization, it’s strictly political. And as the person pulling the strings of new board member Cam Juárez, we can be assured he will

keep his place as her puppet on the board. But Pedicone — and before him, John Carroll, Elizabeth Celania-Fagen, Roger Pfeuffer and Stan Paz — are now only so much water under the bridge. Unwittingly or not, Grijalva and the board now face the task of trying to find a new TUSD superintendent. It should be someone who understands Tucson and the district, has a track-record for advancing student achievement, and can play the right political games. Ironically, all things Pedicone could do. We can expect that TUSD will put together some sort of search effort. That alone will go some in determining what kind of candidate the district is likely to attract. By its nature as a “complex urban district,” as Pedicone put it at the news conference, TUSD will attract at least some carpetbaggers. They’re easy to spot by their histories of short stays in multiple school districts leaving behind numerous broken commitments. They get hired by school board members who become mesmerized by their larger-than-life promises they can’t ever fulfill. The board members are then left scratching their heads a couple of years later wondering why it didn’t work out as they look for yet another superintendent. That is the scenario the TUSD board has already established and nobody should be surprised if plays out that way again. There have been suggestions that members of the boards of both Pima College and TUSD should step down. That’s silly sideline pontification. If changes need to made, it’s time to step up and do something about it. For starters, Arizona has some straightforward provisions for recalling board members, though first-termers have to be in office at least six months before a recall can be started. If a recall doesn’t do it, the electorate will have to get more forceful about running candidates who will make a difference. A majority of voters elected these people. We’re getting the representation, or the consequences, of those elections.

InsideTucsonBusiness.com

MARCH 29, 2013

OPINION BIZ INK

Projects that have risen, or will rise, deserve praise During this Good Friday-Easter weekend season of triumphant resurrection, there are too many good things in the Tucson region worthy of praise. I want to commend civic progress, especially programs and projects that have risen or are on the rise again. Let’s start in downtown Tucson where new ventures are rising. The private sector has stirred the transformation with $400 million in new buildings and redevelopment. They hope to get traction from Sun Link, the government’s $200 million modern streetcar project. Currently, there are about 40 restaurants downtown and about 30 more planned. There’s even renewed talk of two or three boutique hotels springing up. At 1 E. Broadway, the first public-private alliance is rising as a result of the city’s new tax-incentive development program. Caylor Construction is building a $16 million seven-story commercial tower. At 345 E. Congress St., Jim Campbell’s Oasis Tucson Cadence is a massive $33 million 465-bed student housing/retail complex. Nearby, visionary re-furbishers have renewed run-down properties. Ron Schwabe’s Peach Properties and Holualoa Arizona is modernizing Armory Park Apartments, 211 S. Fifth Ave. Around the corner, developer Ross Rulney upgraded and re-purposed the entire Julian Drew/Carriage House/Tiburon

Apartments block. Eatery-inspired entrepreneur Kade Mislinski has opened Hub Restaurant & Ice Creamery, 266 E. Congress St., and Playground, 278 E. Congress St. In the public sector, the ROGER YOHEM University of Arizona College has matriculated into the historic Roy Place Building, 44 N. Stone Ave., and Pima County’s new $75 million Courts Complex will rise seven stories at the north end of downtown. Also adding to the urban core’s rejuvenation is an agreement between the City of Tucson and the Rio Nuevo Multipurpose Facilities District to end their long dispute. Saints be praised, Rio Nuevo will now invest $6 million to update the Tucson Convention Center. These new beginnings create renewed hope that downtown’s new players will get it right. The region’s retail revival includes nationally known players including Costco Wholesale and Walmart. The two have opened stores in the fledgling Tucson Marketplace on the south side to roaring success. Walmart has at least four more stores raising. By year-end, just these two

companies will have hired 1,000 people. In 2013, overall retail sales are projected to grow about $1.5 million to $37 million. For all businesses in the region, an increase of 4,000 jobs is expected. Clearly, the highest-profile resurrection was the 7.4-acre Benenson Retail Center, 5555 E. Broadway, the former site of an abandoned Mervyn’s store. Following a $4 million transformation, the center’s new arrivals included Hobby Lobby, Stein Mart and Mattress Firm. Also rising is housing and real estate. Following the Great Recession, home values have healed by shedding large scabs of sick, distressed inventory. Since February 2012, foreclosure notices have dropped 42 percent. The average selling price per square foot has risen 16.5 percent. These positives have pushed up new home permits by 41 percent year-over-year. Road-related improvements are rising thanks to the $2.1 billion Regional Transportation Authority. For the next 10 years, work will transorm Grant Road into a modern cross-town thoroughfare. Developers have renewed interest in State Trust Land in the Houghton Road Corridor. “Insider” commercial brokers say the huge plant last used by Pella Windows will be leased this year and the massive Lisa Frank building will be sold.

Outsiders are getting in on Tucson’s upswing as well. Forbes/ManpowerGroup says Tucson business owners rank No. 2 nationally for highest “hiring optimism” this year. For mid-sized cities, two other entities both ranked Tucson at No. 2 as an entrepreneurial hot spot. For education, U.S. News and World Report ranked Tucson’s University High and Basis Tucson on its America’s Best high schools list. The same publication cited the University of Arizona Medical Center as one of the nation’s best hospitals. Other good things, like events, also re-kindle community spirit. The Tucson Gem and Mineral Show, Festival of Books and Accenture Match Play Golf Championship all have a global followings. And everyday, we townies live the lifestyle of a top-10 best place for outdoor activities that gradually slide into retirement. Our community is blessed to be on the rise. Easter and spring is the time to have faith in the many things starting anew and to celebrate what we already have: especially the UA Wildcats in the Sweet 16.

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

SPEAKING OUT

Gov. Brewer’s plan to expand AHCCCS will help businesses The federal government’s healthcare reform law, the Affordable Care Act (ACA), asks states to expand their Medicaid programs to cover more low-income people. The 2012 U.S. Supreme Court decision upholding the act gave states flexiblity to decide whether to expand their programs. About half of the states have committed to expanding. Gov. Jan Brewer has developed a proposal to expand the state’s Medicaid program, Arizona Health Care Cost Containment System (AHCCCS), which currently serves about 1.2 million low-income people. The plan would add nearly 300,000 people, including 240,000 single adult workers whose incomes are 133 percent of the federal poverty level with a maximum annual income of $15,282. This expansion would cost the state $256 million, but Brewer’s proposal allows AHCCCS “to establish, administer, and collect a hospital assessment to cover this cost.” The federal government would pay $1.5 billion or 100 percent of expansion costs for the next three years; then phase down to 90 percent by 2020. Businesses in Arizona have rallied to support Brewer’s plan. Mike Hammond, chairman of the Southern Arizona Leader-

ship Council, which represents 118 major employers, noted the reasons to favor the increased coverage in an editorial in the March 22 Arizona Daily Star. Hammond CAROL WEST pointed out that the state’s economy is still in recovery. The Medicaid expansion would bring at least $1.5 billion in additional federal money into Arizona’s economy annually. He also cited an Arizona State University study estimating the additional revenue would add 15,000 jobs, putting more Arizonans back to work. By providing additional coverage through AHCCCS, Arizona would be competitive with other states in business recruitment. Healthier employees are more productive and save companies money in the long term. “Medicaid expansion would keep Arizona’s tax dollars here rather than paying for healthcare programs in other states,” Hammond wrote. Both Hammond and Arizona’s hospitals

point out that the added coverage of low income people will lower health costs for most Arizonans with insurance. Hospitals provide care for the uninsured in their emergency rooms. Those without health insurance generally wait until they are very sick before they seek treatment, which increases costs. This uncompensated care is added to the bills of those who have insurance. The result is higher insurance premiums for businesses and individuals who pay for their coverage. According to the Arizona Alliance for Community Health Centers, the average added cost to a family’s private healthcare insurance is $1,700. In 2012, Arizona hospitals saw a 75 percent increase in uncompensated care over 2011. People who disenrolled from AHCCCS did not leave Arizona, so hospitals are still providing their care. Rural hospitals are in danger of filing for bankruptcy due to this added burden. Hospitals favor the expansion of Medicaid. In fact, they proposed the surcharge to pay for Arizona’s share of the costs if the legislature approves Governor Brewer’s plan. Many Arizona legislators are skeptical of this Medicaid expansion. Under ACA, the federal government is to pay a match for

the expansion but lawmakers fear Washington, D.C., could renege on future payments because of budget deficits. Governor Brewer has included a “circuit breaker” in her plan that addresses that last matter. If the federal government were to stop payments, the state would also decrease the number of people covered. AHCCCS is considered one of the most cost-effective Medicaid programs in the U.S., with “broad choice and greatly reduced fraud and waste. It has greater doctor, hospital, and provider participation than other states and is cheaper per enrollee per year than the average Medicaid program,” according to the Alliance. The Medicaid expansion would help Arizona businesses and keep our hospitals solvent. All Arizona hospitals have been hit hard financially during the recession because of increased unemployment with subsequent loss of health insurance. The Legislature needs to do what is best for all Arizonans and pass Governor Brewer’s Medicaid plan.

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

22 MARCH 29, 2013

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

I’d rather have employees who don’t just ‘lean in,’ but are ‘all in’ In the 1990s while Sheryl Sandberg was learning to “lean in” to her career, I was learning to lean in at home. I was following much of Sandberg’s as-yet-unwritten advice. Accept every challenge. Be more assertive. Don’t worry so much about being liked. In the mid-90s, I was a divorced father of three with joint custody and a more flexible schedule than my ex. That made me the go-to parent for sick days, hastily arranged parent-teacher conferences, and carpooling. There were years when I took my four weeks of vacation two hours at a time, so I could leave my office at 3:30 and attend my kids’ baseball, lacrosse, and soccer games. I wanted to show my kids a father who could do it all – cook, clean, negotiate play dates with stay-at-home moms, throw a birthday party, coach the basketball team, and still have a career. And I wasn’t alone. I know a lot of men who chose to lean in at home. To become better partners and fathers. To give their wives equal time as their careers. It’s no longer rare to find marriages where partners evenly split the workload and the parenting. In fact, a few years after I divorced I was lucky enough to marry a

wonderful woman with another inflexible schedule. I continued to lean in at home. I’m leaning in right now. I want to make it clear that I admire Sheryl JIM SOLLISCH Sandberg. I have no problem with her or her advice. I just don’t care much for books and arguments that address whole genders. Men are not from one planet and women from another. Everyone makes choices about where they want to lean in. And the truth that doesn’t get addressed in books like Sandberg’s is that you can’t lean in equally hard at work and at home. Men can’t do it. Neither can women. I developed an approach that I might call “All In” if I were writing a book that needed a catchy title. Going all in isn’t about devoting yourself entirely to a career. And it isn’t just about balancing career and home. It’s about intensity. The subtitle of

“All In” might be “Practicing the art of passion at work and at home.” I work with a lot of 20-somethings, male and female. Some of them are leaning in quite well on their career paths. They’re following much of Sandberg’s advice – boldly asking for promotions and mentors and allowing themselves, as Sandberg suggests, to fantasize about their career paths. What they’re not doing is working intensely. I’m looking for people who aren’t all in on career development – I want people who are all in on the project at hand. I want them focused and present. I want them in the zone. And all that fantasizing about the next career move works against that. I want to surround myself with people who might not take on every challenge but are all in on every challenge they do accept. I’ve seen too many ambitious, talented people take on way too much and do it with way too little passion. I prefer people who are a bit obsessive about getting things right. They’re so focused, they bring you into their orbit. They look at problems as puzzles to solve.

And they don’t stop when they find the first solution. They keep searching. The truth is, we all waste too much time at work and at home going through the motions. We’re not present. At work, we spend too much time on Sandberg’s website, not leaning in but leaning back. At home we’re checking our phones when we could be really listening to our kids or our spouses. We’re rarely all in – at home or at work. One tip about how to know when you’re all in: If you’re multi-tasking, you’re not all in. So if you’re tweaking a PowerPoint presentation at your kid’s soccer game, you don’t get credit for being all in. Same with checking email during a meeting at work. All in is about learning to focus, even for short periods of time, on the task at hand. And being all in is the surest path to happiness. Leaning in to your career might bring success, but if you learn to find passion in the actual work, you’ll find real happiness.

Jim Sollisch is creative director at Marcus Thomas Advertising, which is based in Cleveland.

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MARCH 29, 2013

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