KEEPING COOL IN THE SUN SunDanzer leads the way on solarpowered refrigeration PAGE 3
Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • APRIL 5, 2013 • VOL. 22, NO. 45 • $1
Innovation university UA honors student, faculty achievements Page 4
Macy's ready for online sales tax
Company invests millions in online fulfillment center Page 19
Company plans to build 21+ turbine windfarm east of Tucson By Carol Broeder Arizona Range News In what would be a first in Southern Arizona, a Texas-based company is looking to build a windfarm of 21 to 28 turbine generators standing up to 487 feet tall with blade diameters of 191½-feet, all of which would be capable of producing 51 megawatts of electricity that would be sold to Tucson Electric Power. The site is on desert land about 21 miles west of Willcox. Torch Renewable Energy LLC has submitted a special use application for development of the Red Horse 2 Wind Farm that is scheduled to be heard by Cochise County Planning and Zoning Commission on Wednes-
day (April 10). The electricity generated from the project would be enough to power about 11,000 homes annually. Torch Renewable Energy’s Glenn Holliday, who is based in Houston, said his company will invest between $100 million and $125 million in infrastructure for the project. Construction is expected to begin in mid-December this year and commercial operations should commence by the end of 2014. “The wind farm will create electricity with zero emissions and zero water usage in an arid region,” Holliday said. The project has already gained unanimous support from the Willcox
City Council. Jeff Stoddard, with the Willcox Development Services Department, recommended the council approve the plant’s construction for the approximately 50 construction jobs and for the possibility that it would “bring other industries related to this project to the Willcox area in the near future.” Holliday said his company is working closely with Arizona Game and Fish and the U.S. Fish and Wildlife Service to ensure proper study methods are utilized. “A complete cultural resource study will be completed in the next few months and the final turbine array will be based on information attained from archaeological and environmen-
tal studies,” he said. Holliday indicated “the impact to neighboring property owners will be minimal,” with the majority of the land surrounding the site owned by the state and “sparsely populated.” “The nearest property owner to the west of the project is more than two miles from the farthest west wind turbine,” said Holiday, and they are negotiating to continue using the land for cattle grazing. Homer Hansen, chair of a birdwatching event called Wings Over Willcox, has raised questions as to how the company can be planning to start construction this year when avian and bat studies aren’t expected to be complete until November.
2 APRIL 5, 2013
INSIDE TUCSON BUSINESS
What would you do today with an SBA loan?
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Proud to be America’s #1 SBA lender for the fourth straight year 2 Apply for a loan or learn more today. Stop by a Wells Fargo location to talk with a banker, or call 1-800-545-0670 (Monday – Friday, 7 a.m. – 7 p.m. Central Time). You can also visit wellsfargo.com/biz.
U.S. Small Business Administration, for federal fiscal year 2012. Wells Fargo is the #1 SBA 7(a) lender by dollars according to the U.S. Small Business Administration as of September 30, 2012. All credit decisions subject to approval. © 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (821895_07623)
APRIL 5, 2013
Tucson firm makes solar refrigerator merging hot and cold—off the grid
Up & Comers next week in Inside Tucson Business Be on the lookout for next week’s issue of Inside Tucson Business and the special supplement featuring the 2013 class of Up & Comers. Nine Up & Comers selected from nominations submitted by readers of Inside Tucson Business will be featured in the special section. A reception honoring this year’s recipients will be held from 5:30 to 7:30 p.m. April 30 at the Playground, 278 E. Congress St.
Pima College names 2nd interim chanellor
Bob Clark, left, and Ken Feruson work on SunDanzer solar power freezers. The refrigerators and freezers can stay cold for five days without electricity.
By Patrick McNamara Inside Tucson Business Man-made, electric-powered refrigeration arguably could be one of the most important advancements humankind has ever made. A Tucson company has taken the advancements in the technology and made them available to people in the world’s re-
mote, off-the-grid locations. “We sell a lot to Africa,” said David Bergeron, president of SunDanzer Development, 420 E. Aviation Drive. What Bergeron’s company sells looks like little more than an off-the-shelf, cheststyle freezer. But the SunDanzer line of products is unique because they can run on solar power and don’t require batteries.
The company purchases freezer and refrigerator units from major manufacturers such as Electrolux and retrofits them. The units are basically shells, Bergeron said, without compressors or other parts. SunDanzer workers install the company’s own developed and off-the-shelf components, including blue ice packs filled with a proprietary liquid that remains frozen for an extended time, to make the units CONTINUED ON PAGE 6
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A former community college leader from the Midwest was named Tuesday (April 2) to serve as interim chancellor for Zelema Harris Pima Community College. Zelema Harris, who is due to start work April 15, replaces Suzanne Miles, who stepped down as interim chancellor in the face of ongoing issues that now threaten its accreditation. Miles had been named interim chancellor to fill the vacancy created when long-time chancellor Roy Flores resigned amid allegations of sexual harrassment. Harris was chancellor of St. Louis Community College from 2007 to 2011. Previously she had president of Parkland College in Champaign, Ill. and president of Penn Valley Community College in Kansas City, Mo. Harris was one of five candidates interviewed by Pima Community College’s governing board and employee groups.
Job gains drop Tucson unemployment to 6.7% Significant gains in new jobs in education, construction and leisure and hospitality heled drive Tucson’s February unemployment rate down to 6.7 percent, from 7.3 percent in January and 7.6 percent in February 2012, according to the Arizona Department of Statistics report. Of the 3,500 additional jobs in the region compared with February 2012, 1,600 were in education, 1,500 were in leisure and hospitality and 1,300 were in construction. Declines of 700 jobs in professional services and 200 jobs in manufacturing offset some of those gains. Arizona’s statewide unemployment rate for February was 7.9 percent, down from 8.0 percent in January. The statewide unemployment is seasonally adjusted, the Tucson rate is not. The unadjusted state rate would have dropped to 7.7 percent from 8.3 percent in January.
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4 APRIL 5, 2013
INSIDE TUCSON BUSINESS
NEWS Court OKs EuroFresh sale to NatureSweet for $55.2M Greenhouse grower EuroFresh Farms will be operating as part of NatureSweet Ltd. by the end of April under a $55.2 million deal that has been approved in U.S. Bankruptcy Court. A so-called 363 sale was approved March 28 by Judge Eilleen Hollowell. The type of sale allowed EuroFresh to market its assets to bidders after filing for Chapter 11 bankruptcy Jan. 27. In her approval issued March 27, Hollowell said the sale to NatureSweet represents the highest and best offer. The sale price includes the original principal amount of $51.2 million plus at least $4 million in additional expenses accrued since the bankruptcy filing. EuroFresh, headquartered in Willcox with a second greenhouse in Snowflake, has about 1,100 employees producing hothouse tomatoes and cucumbers. NatureSweet, headquartered in San Antonio, Texas, has nearly 5,000 employees and is also a major producer of tomatoes. This had been EuroFresh’s second trip through bankruptcy court. The company previously filed in April 2009 and exited by the end of that year with a recapitalization plan from a group of investors including founder Johan van den Berg, who returned as president and CEO. EuroFresh was founded in Pennsylvania in 1990 then relocated to Willcox two years later. The Snowflake facility was opened in 2002, putting a total of 318 acres in hothouses. At the time of its January bankruptcy filing, EuroFresh chief financial officer Frank van Straalen said it was due to continued marketplace pressure that had kept the price of tomatoes low.
Airport won’t file legal challenge to tower closure The Tucson Airport Authority’s board of directors has decided not to pursue a legal challenge to the Federal Aviation Administration’s decision to shut down the control tower at Ryan Airfield as part of sequestration budget cuts. After an executive session with lawyers, the board decided not to pursue the matter at this time, according Katy Smith, spokeswoman for the airport authority. At least 14 airports had filed legal challenges as of Wednesday. The FAA is planning to close 149 towers by May 5. The tower at Ryan Airfield, 9698 W. Ajo Way, will be shut down as of 8 p.m. Sunday (April 7). Bonnie Allin, president and CEO of the airport authority, said the FAA has been adamant about going through with the closures despite efforts to appeal the decision. The control tower has been staffed with controllers paid under a contract with the FAA. Starting Monday, Ryan Airfield will become an “uncontrolled” airport, operating as other general aviation airports do in the Tucson region.
UA honors innovators By Lauren Shores Inside Tucson Business University of Arizona innovators presented ideas in technology, science and business plans, celebrating their entrepreneurial drive and hoping to sell their ideas to companies at the 10th annual Innovation Day on campus March 28. The ideas coming from students and faculty included advances in medical technology to scientific research and apps for smartphones. Hsinchun Chen, Ph.D., a professor in management information systems at the Eller College of Management, won Innovator of the Year for his work in cyber security. He created COPLINK, a system that counters online terrorism and is now used in over 4,500 law enforcement and intelligence agencies. When he sold COPLINK, he became a multi-millionaire, but COPLINK was much more than just a paycheck to him. “Money should be consequence of success in innovation,” said Chen. “Money doesn’t motivate people at the cutting edge — it’s applying their work. They want to create an impact.” Jared Griebel, a current doctoral candidate of chemistry, won Student Innovator of the Year for his work with copolymers. Copolymers have been considered a waste product for years, but Griebel converted them into a renewable source that can be applied to batteries. He is currently working with three chemical manufacturing companies, focusing on energy and ramping his research up to an industrial level. “The basis for this technology goes back 50 years, but no one really cared,” said Griebel. “It’s very easy if you have the right tools. We just took something so simple — a waste product — and made it renewable.”
ABOVE: University of Arizona Business undergraduate John Poxon, with Medovate Solutions, blows into a his teams design of a spirometer at UA's Innovation Day, on Thursday (March 28). The group calls it an interactive mechanical incentive spirometer, and it is customizable for different sports. The mechanical incentive is making a goal, with your lungs as the power source for the game. LEFT: Leah Weisel, a Grafted Growers exhibitor, talks to visitors of UA's Innovation Day. Grafted Growers is a local, national and international group, centered around agriculture, part of whose goal is to increase yield in agriculture.
APRIL 5, 2013
Talks start over future of Ronstadt Transit Center, possible commercial development
Good News Play ball In what will probably be their final season here, the Tucson Padres have started their Triple-A season. They’re on the road this weekend and will have their home opener at 7:05 p.m. April 12 at Kino Stadium, 2500 E. Ajo Way, when they’ll play the Fresno Grizzlies. In the meantime, the Padres this year will be broadcast on the Source KCUB 1290AM. The games tonight, Saturday and Sunday at Salt Lake City will be broadcast after the University of Arizona Wildcats’ baseball games. The four games next week at Colorado Springs will be live at 5:25 p.m. Monday and Tuesday and 9:55 a.m. Wednesday and Thursday.
With construction activity in downtown occurring at a pace not seen in decades, Tucson city officials have begun to look at the Ronstadt Transit Center as the site of a possible mixed-use development. “I’m encouraged by the fact that divergent groups in the community agree to not maintain the status quo for another 10 or 20 years,” said Councilwoman Karen Uhlich. Uhlich requested the city begin a process of involving community members in discussions about the future of the transit center built in the early 1990s to serve as a hub for Sun Tran bus service. Recently, some downtown businesses have raised questions about the need for so many buses to converge downtown. The city council hired architectural firm Poster Frost Mirto to begin the public planning process and organize stakeholder meetings. The final product of those meetings should create a set of parameters for possible development of the nearly 2-acre site. The city later could call for private-sector proposals for development of the area. The area being studied includes a city owned parking lot directly north of the Ronstadt Transit Center and an undeveloped lot north of that, between the railroad tracks, the Historic Depot and Sixth Avenue. Any plan will almost certainly include a continued transit presence, while incorporating housing, retail and office space. Open space or some form of a public area also would likely be a part of the design. Because the current location of the Ronstadt Transit Center, 215 E. Congress St., will likely be the most appealing for development, the transit portion could be moved to the open parcels north of the site. The prospect of developing more tax-generating properties downtown has generated enthusiasm in some quarters of the downtown community. “I think the time for regional or national developers to start looking at Tucson is now,” said Michael Keith, CEO of the Downtown Tucson Partnership and one of the stakeholder groups the city has included in the talks. Keith said the amount of private investment made downtown in the past few years has been nearly $200 million with another $100 million already lined up for the coming year. He described downtown Tucson as one of the hottest markets in the country right now. “People who visit here are stunned by what’s going on,” Keith said. Despite the potential appeal, the city would have to navigate some regulation before signing off on a development deal.
By Patrick McNamara Inside Tucson Business
Sun Tran buses line up along Sixth Avenue in front of the Ronstadt Transit Center. City leaders are discussing possible commercial development of the site.
The Ronstadt Transit Center was originally paid for with funds from the Federal Transit Administration. Improvements totaling nearly $3 million completed earlier this year at the site also were paid for by the FTA. Whether the federal government would favor relocating the transit center will need to be determined. “It seems that it would be wise to keep it where it is,” said Michele Joseph, marketing director for Sun Tran. The bus service also has been included in the ongoing talks about the future of the Ronstadt center. Joseph said an estimated 17,000 people traverse the Ronstadt center each weekday, based on a 2004 analysis Sun Tran conducted. That analysis did not track whether the Ronstadt Center was the commuter’s starting point or destination or if the person was using it to transfer from one bus to another. Sun Tran will conduct a survey next Wendesday (April 10) to try to get a sense of why people use the transit center and what they might like to see happen to it. A comprehensive analysis of commuters using the center is being planned for the fall. A 2008 city-commissioned study identifying other possible downtown locations for a transit hub was never completed. Uhlich said she suspects that had to do with the fact that the city was looking to sell the site but the study pointed leaving the Ronstadt center intact. “The study was commissioned to justify that conclusion,” Uhlich said. “We can study this again, again and again, but we’ll keep finding the same results.” A 2005 study the city commissioned recommended retaining the transit facil-
ity on two-thirds of the Ronstadt center and allowing private development on the southern portion that faces Congress Street. That study also recommended locating the Greyhound Bus depot on the undeveloped parcel that borders the train tracks north of Ronstadt. The transit center also was the subject of city funded studies in 2007 and 2009, which looked at issues of crime prevention and possible commercial development. Development of that vacant parcel, if the city decides to keep Ronstadt unchanged, could pose problems itself. Keith said noise from the constant flow of Union Pacific trains could make the property less desirable for commercial development. Perhaps more important are the potential environmental issues. Keith said an oil plume beneath the surface near the rail tracks could limit development possibilities. Records from the Arizona Department of Environmental Quality show that several subterranean storage tanks where a dry cleaner once stood north of the tracks had for years leached tetrachloroethene and petroleum hydrocarbons into the soil and groundwater. While no active wells are in operation in the affected area, the contamination could affect the future of possible development. Meetings with the stakeholder groups are scheduled to wrap up in May. Following that, the city council would decide what a request for proposals would require and whether to move forward. Contact reporter Patrick McNamara at email@example.com or (520) 295-4259.
INSIDER Insights and trends on developing and ongoing Tucson regional business news.
Decommissioned, but not decertiﬁed The control tower at Ryan Airfield, 9698 W. Ajo Way, is due to be decommissioned as of Monday, but it won’t be decertified. In fact, quite the contrary. Although the control tower is being shut down as part of the Federal Aviation Administration’s $637 million in budget cuts due to sequestration, the Tucson Airport Authority, which runs the general aviation airport, will keep the equipment in the tower functioning in preparation for a certification review that was already scheduled to take place in May. Danette Bewley, director of operations, says the goal would be to get the tower back up and running as quickly as possible, should Washington officials remove the FAA’s cuts.
How’s that add up? Tucson Mayor Jonathan Rothschild told the news media recently that in planning for next fiscal year’s budget, the city isn’t planning to reduce services or increase taxes. At the same time, though, the city expects to lose millions of dollars in state funding and increasing personnel costs, which are contributing to an anticipated $15 million deficit going into the fiscal year. Rothschild said short-term revenue generators could be refinancing debt, implementing a stormwater utility fee and requiring utility providers to pay for their own graffiti abatement.
6 APRIL 5, 2013
INSIDE TUCSON BUSINESS
NEWS PUBLIC NOTICES
SOLAR CONTINUED FROM PAGE 3
ready for sale. Bergeron said the company builds some units specially designed to hold vaccines and other medications destined for remote areas without electricity. Solar-power systems, which customers either already own or buy separately, charge the refrigerator and freezers during the day. Thick insulated walls and the ice packs keep the contents at a constant temperature for days without power, if needed. Bergeron said the units have tested to remain at temperature for three days at 110 degrees or five days at 90 degrees. “Our customers are so remote that when it gets there it has to work,” he said. SunDanzer has about 13 employees between two locations, Tucson and El Paso, where much of the company’s manufacturing takes place. The company sells about 2,500 freezer and refrigerator units annually. Bergeron started the company in 1999, after working as a contract employee for NASA on refrigeration projects. SunDanzer was born out of the work with NASA, which brought together two of Bergeron’s interests. “I always liked refrigeration and always liked solar,” he said. Over the years, the company has de-
Public notices of business bankruptcies, foreclosures and liens filed in Tucson or Pima County and selected filings in Phoenix. Addresses are Tucson unless otherwise noted.
Partnership for Quality Affordable Housing No. 5 2162 W. Speedway 85745 Tax parcel: 116-03-019H Original Principal: $2,700,000.00 Beneﬁciary: US Bank, as successor in interest to Bank of America, as trustee successor by merger to LaSalle Bank, as trustee successor by merger to LaSalle National Bank, as trustee to Morgan Stanley Capital Inc. commercial mortgage pass-through certiﬁcates, series 1998-WF1, c/o CWCapital Asset Management LLC, Bethesda, Md. Auction time and date: 11:30 a.m. June 19, 2013 Trustee: Michelle Ghidotti-Gonsalves, Assured Lender Services, 2552 Walnut Ave., Suite 110, Tustin, Calif. D.E. Marranville Corporation Inc. 8122 S. Fuller Road, Three Points 85735 Tax parcel: 208-54-050B Original Principal: $25,000.00 Beneﬁciary: Kaisutam Family Trust Auction time and date: 10 a.m. June 25, 2013 Trustee: Michael R. Urman, DeConcini McDonald Yetwin & Lacy, 2525 E. Broadway, Suite 200 D.E. Marranville Corporation Inc. 8120 and 8126 S. Fuller Road, Three Points 85735 Tax parcel: 208-54-050E and 208-54-050F Original Principal: $48,500.00 Beneﬁciary: Kaisutam Family Trust Auction time and date: 10 a.m. June 25, 2013 Trustee: Michael R. Urman, DeConcini McDonald Yetwin & Lacy, 2525 E. Broadway, Suite 200 ACF Group LLC and Plumtree Holdings LLC 4014, 4024 and 4034 E. Pima St. 85712 Tax parcel: 122-13-241A, 122-13-241B and 122-13-241C Original Principal: $462,300.00 Beneﬁciary: Wells Fargo, Phoenix Auction time and date: 11:30 a.m. June 25, 2013 Trustee: Wade M. Burgeson, Engelman Berger, 3636 N. Central Ave., Suite 700, Phoenix ACF Group LLC 4110 E. Spring St. and 2785 N. Calle De Romy 85712 Tax parcel: 110-07-233E and 110-07-048 Original Principal: $780,000.00 Beneﬁciary: Wells Fargo, Phoenix Auction time and date: 11:30 a.m. June 25, 2013 Trustee: Wade M. Burgeson, Engelman Berger, 3636 N. Central Ave., Suite 700, Phoenix Kino Air Conditioning & Heating LLC 1602 S. Park Ave. 85713 Tax parcel: 129-15-0180 Original Principal: $135,000.00 Beneﬁciary: Yasser Abauaelian Auction time and date: 10 a.m. June 20, 2013 Trustee: Title Security Agency of Arizona, 2370 E. Broadway, Suite 100 Joseph E. Greene III and Early Bird Day Care & Learning Center Inc. 118, 130 and 138 E. Prince Road 85705 Tax parcel: 106-03-008C Original Principal: $300,000.00 Beneﬁciary: Gerald A. Rust Auction time and date: 11:30 a.m. June 21, 2013 Trustee: First American Title Insurance Company Mortgage Services, 9000 E. Pima Center Parkway, Scottsdale Pilling Griffth Properties LLC 810 E. 19th St. 85719 Tax parcel: 124-15-0370
Original Principal: $379,000.00 Beneﬁciary: Commerce Bank of Arizona Auction time and date: 11:30 a.m. June 25, 2013 Trustee: Steven J. Itkin, Waterfall Economidis Caldwell Hanshaw & Villamana, 5210 E. Williams Circle, Suite 800
Federal tax liens Sunset Quality Builders, 131 W. Rolling Hills St., Oro Valley. Amount owed: $8,571.08. Terry D. Gray Cactus Counseling Associates, 2031 E. Edgemont St. Amount owed: $23,320.71. Lynch Automotive Inc., 6847 E. Mary Drive. Amount owed: $1,833.79. Bennett Pool Specialties and Matthew Thomas Bennett, 4050 E. Camino Del La Bajada. Amount owed: $1,749.62. Dos Llaves Enterprises LLC and Ernie M. Smith, PO Box 89119, 85752 (2322 W. La Cresta Road). Amount owed: $8,267.56. Saguaro Occupational Therapy LLC and Kim E. Lonsway, 8192 S. Placita Almeria. Amount owed: $7,161.50. David Lipartito PC, 177 N. Church Ave., Suite 700. Amount owed: $1,950.00. Tortilla Factory De Tucson and Juan M. Villalva and Maria I. Villalva, 1755 W. Ajo Way. Amount owed: $1,239.39. Ron Fletcher Company Inc., 1980 E. River Road, Suite 250. Amount owed: $27,911.93. Houston Careers Specialists LLC, 2540 N. Pantano Road. Amount owed: $48,659.21. D&B Powwerwashing Service LLC and Brenda Kreger, 5841 S. Garrett Ave. Amount owed: $6,885.63. Mama Louisa’s Restaurant and S&J Foods Inc., 2041 S. Craycroft Road. Amount owed: $119,347.12. Nico’s Mexican Food and Arturo Carreon, 6012 E. Hampton St. Amount owed: $5,028.16.
Mechanics liens (Security interest liens of $1,000 or more ﬁled by those who have supplied labor or materials for property improvements.) Sahara Mechanical Inc., 3887 E. Ajo Way, against DND Neffson Co., c/o General Growth Properties, PO Box 6117905, Chicago 60661; and DC Builders & Development LLC, 3370 N. Hayden Road, Suite 123-739, Scottsdale. Property: 4500 N. Oracle Road, Suite 370, Toby Keith’s I Love This Bar and Grill. Amount owed: $93,541.30. Classic Plumbing Co. Inc., 5777 W. Ajo Way, against 2475 Water Street LLC, 2475 E. Water St. Property: 2475 E. Water St. Amount owed: $2,650.00. Ascent Aviation Services Corp., 6901 S. Park Ave., against Falcon Air, 261 NW 105th Ave., Doral, Fla. Property: McDonnell Douglas MD-83 Registration N306FA. Amount owed: $14,113.40. Ascent Aviation Services Corp., 6901 S. Park Ave., against Falcon Air, 261 NW 105th Ave., Doral, Fla. Property: McDonnell Douglas MD-83 Registration N125NM. Amount owed: $59,906.22. CalPortland Company, 2025 E. Financial Way, Glendora, Calif., against Exeter 6720 S Alvernon LLC, also known as Alvernon Way Commerce Center LLC, 145 W. Germantown Pike, Suite 150, Plymouth Meeting, Pa.; and c/o Ray Rivas, 13853 N. Steprock Canyon Place, Oro Valley; and David A. McEvoy, 4560 E. Camp Lowell Drive. Property: 6720 S. Alvernon Way. Amount owed: $43,603.53. Legacy Air Inc., 3529 E. Wood St., Phoenix, against Marana Health Center Inc., 13644 N. Sandario Road, Marana. Property: 13395 N. Marana Main St., Marana. Amount owed: $6,402.50. Noelle Haro-Gomez
A row of SunDanzer freezers.
veloped additional products, some designed for military uses. It’s currently developing a solar-powered water bottle chiller. With an appearance similar to a large soda machine, the unit could be placed with troops in remote locations where power is scarce. The unit holds 500 liters of water in standard sized plastic bottles, which troops can take from a door at the base. If the chiller works as he anticipates, Bergeron said they would expect to sell as many as 1,000 to the U.S. Department of Defense. “If we’re lucky, we might find commercial customers as well,” he said. Another military project the company has started work on is creating a solardiesel hybrid powered mobile refrigeration unit. The military already uses large roll-off units for cold storage, which SunDanzer is working to convert to hybrid or even full-solar technology. Successful development could turn into a major contract for SunDanzer, Bergeron said. He estimates the military has at least 3,000 of the diesel-powered refrigerator units in the field. Contact reporter Patrick McNamara at firstname.lastname@example.org or (520) 295-4259.
APRIL 5, 2013
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8 APRIL 5, 2013
INSIDE TUCSON BUSINESS
W FOLLO ADER THE LE
Tucson’s TV top 10 and more nuggets from latest Nielsen ratings By David Hatfield Inside Tucson Business While TV stations rush to check how their local newscasts did in the latest Nielsen ratings — as was reported here last week — there are other media nuggets to be found. Take for instance these from the February ratings: • As if anyone needed further proof of the popularity of the NFL’s Super Bowl, this year’s Baltimore Ravens-San Francisco 49ers game grabbed 72 percent of Southern Arizona households watching TV from 4:30 to 8:45 p.m. Feb. 3. An estimated total of 187,025 households tuned in to the game broadcast on CBS, KOLD 13. • The Oscar Awards on ABC Feb. 24 were also big, watched on KGUN 9 in 91,542 households, 42 percent of the households watchng TV that night. The split of viewers ages 18-49 were closely split — 22,077 women and 19,530 men — those numbers represent 43 percent of all men watching TV at that time but apparently a higher percentage of women found other things to watch, as 34 percent were tuned to the Oscars. Seth MacFarlane probably accounts for that. • The Grammy Awards Feb. 10 on CBS were watched in 55,626 Southern Arizona households on KOLD, representing 25 percent of those watching TV. For those who might think the Grammys would be strongest among younger viewers, its strongest demo was 25-54, and more than half, 53 percent, of them were men. • NBC’s coverage of the Accenture Match Play Championship had 18,834 households tuned in to KVOA 4 for Saturday’s coverage on Feb. 23 and 17,520 for the Sunday coverage on Feb. 24.
Tucson’s top 10
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Eight of the top 10 prime time series in Southern Arizona are on CBS and KOLD 13. The other two are on ABC and KGUN 9. These are the top 10 prime time series, ranked by average viewers ages 18-49, in the Tucson market: 1. “Big Bang Theory,” 7 p.m. Thursdays, KOLD 13 - 28,600 2. “Person of Interest,” 8 p.m. Thursdays, KOLD - 25,960 3. “NCIS L.A.,” 8 p.m. Tuesdays, KOLD - 23,320 4. “NCIS,” 7 p.m. Tuesdays, KOLD - 21,560 5. “How I Met Your Mother,” 7 p.m. Mondays, KOLD - 21,120 6. “2 Broke Girls,” 8 p.m. Mondays, KOLD - 20,680 7. “Elementary,” 9 p.m. Thursdays, KOLD - 19,800 8. “Castle,” 9 p.m. Mondays, KGUN 9 17,600
9 (tie). “Modern Family,” 8 p.m. Wednesdays, KGUN - 16,280 “Mike & Molly,” 8:30 p.m. Mondays, KOLD - 16,280 “The Office,” at 8 p.m. Thursdays on KVOA 4, was NBC’s highest rated show in Tucson, coming in at No. 13 with 14,520 viewers ages 18-49. Fox’s highest rated show was “The Simpsons,” 7 p.m. Sundays on KMSB 11, at No. 15 with 14,080 in the age group. PBS’ “Downton Abbey,” 8 p.m. Sundays on KUAT-TV 6, made the list, tied with three other series for No. 48, averaging 11,718 viewers ages 18-49.
‘AZ Illustrated’ first outing Arizona Public Media’s retooling of “Arizona Illustrated,” 6:30 p.m. weekdays on KUAT-TV 6, didn’t do much to move the ratings needle in its first outing. Granted, the show, now called “AZ Illustrated,” premiered Feb. 4, five days into the start of Nielsen’s February sweeps which didn’t allow for the impact of any marketing. And the unusual move to take the show off the air for the month of January didn’t help maintain viewing habits. As a result, the Monday-Friday ratings average was nearly identical to what it did in the last ratings in November and up slightly from February 2012. Now that each night’s program is themed — metro news on Mondays, science on Tuesdays, nature on Wednesdays, the arts on Thursdays and politics on Fridays — it provides an interesting view of subjects audiences care about. Judging from this first ratings period, Wednesdays’ nature and Fridays’ politics are the two most popular nights, averaging about 6,700 viewers age 18 and older while the Thursdays’ arts show is the least popular night, averaging about 3,350 viewers. Both the low-rated arts shows and higher-rated politics shows have something common: all of their viewers are 55 or older, according to Nielsen. In fact, viewers 65 or older make up nearly two thirds of the Friday night political show and more than 75 percent of the Thursday arts show. Because of the dates of the Nielsen ratings, the Thursday and Friday shows are averages of three weeks, while the other nights are four-week averages. A first rating doesn’t necessarily determine a show’s fate and, indeed, when the revamped show was launched chief content officer Jacqueline Kain didn’t respond to a request for an interview as to how she would judge its success, but if audience acceptance is in the equation, “AZ Illustrated” is going to need something more out of the next ratings.
Contact David Hatfield at firstname.lastname@example.org or (520) 295-4237. Inside Tucson Media appears weekly.
APRIL 5, 2013
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10 APRIL 5, 2013
INSIDE TUCSON BUSINESS
Dentist Robert Felix and his lifetime of memories with Tucson Prior to the Stork’s Nest maternity home opening in the mid-1920s when St. Mary’s was still a tubercular hospital, children in Tucson were born at home. In 1922 Robert Felix, as was his older sister, was born in his grandparents’ home in the 600 block of East First Street. Just in case, obstetrician Dr. George Purcell, who was known to “occasionally take a nip” didn’t make it in time, the Felix’s had a midwife standing by. It was a wise decision. Baby Robert Felix entered the world before the doctor arrived, though he says, “Doc Purcell still got his $50 birthing fee.” Younger brother Bill was born three years later at the Stork’s Nest. With a family of three children, Louis Felix built a new home on Mabel Street in 1925. “My dad was Tucson’s first Hispanic to build a house north of Speedway,” Robert Felix remembers. “During a monsoon rain, the curbs would flood. We would watch cars float down the street until they reached the end of Mabel Street at Stone Avenue.” Louis Felix, who was born in Tucson in 1898, began his career at age 18 when he went to work for Southern Arizona Bank as a messenger boy. He retired Dec. 31, 1963, as president of the bank. “That success for a Hispanic just didn’t happen in Tucson, or for that matter, in any other city,” Robert Felix said. “Dad told me that during the first part of the Depression, he was promoted to teller. He thought about quitting the bank to go to work for the Southern Pacific. Cashing pay checks every two weeks he knew the railroad men were paid twice as much as he earned. Dad was a man who always wore a hat, felt in the winter and a straw one in summer, along with a coat and a tie.” Felix said that one day his father noticed
Robert Felix in 1962.
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the railroad men all had dirty fingernails. So Louis J. Felix, who never went to college, chose instead to remain at Southern Arizona Bank. Growing up Robert Felix MARY L. PEACHIN attended University Heights, Roskruge, and Tucson High schools. He was an honor-roll student and served as a class officer. After graduation, he studied pre-med at the University of Arizona. When Pearl Harbor was attacked Dec. 7, 1941, Robert Felix was too young to join the service without his parents’ permission. As part of his effort to talk his son out of joining the Navy, Louis Felix tapped an old friendship, Dr. Paul Bennett, dean of the dental school at the University of Southern California. “I was accepted before I even applied. In two years and fours months, I graduated from dental school. In order not to be drafted, I spent the last 18 months of school in the Naval Reserves,” Robert Felix said. Monte Mansfield, a prominent businessman who had owned Tucson’s Ford dealership, was head of the draft board here. Felix recalls, “When I went to Navy headquarters, prominent lawyer Lt. Commander Harold Warnock swore me into the service.” All but three months of Felix’s 21 months’ tour of duty was spent at Subic Bay, the Philippines. “The Navy paid me $110 a month and provided my clothing. I graduated as a lieutenant junior grade officer in the Dental Corp,” Felix said. When he returned to Tucson office space
APRIL 5, 2013
REMEMBERING TUCSON was at a premium. He went to work part-time for Dr. C.E. Matteson as a preceptor for no pay, under Drs. Charles and William Tweed in the Valley National Bank building. Charles TWeed was the founder of modern orthodontics and Felix would later take the exam to become a member of the American Association of Orthodontists. “If I recall, your dad, Leon Levy, paid me $700 for your orthodontics,” Felix told me, adding that Jack Sakrison gave the same for his son, now lawyer Jim Sakrison. “Prior to the two of you, Charlie Tweed was paid for the work I did,” Felix said. During the late 1940s, at the corner of Broadway and Tucson Boulevard there was an ice cream parlor known as the Hidden House. Judge Evo DeConcini built offices around the property. Many of the physicians, who were practicing downtown, moved to DeConcini’s property. The migration then continued eastward taking Felix and other doctors to a building at Fifth Street and Wilmot Road, called 601 Wilmot. The medical complex’s roofline quickly earned it the nickname, “Titty City.” The complext has since been replaced by another office complex that includes the Tucson headquarters for Caliber Funding. When prominent real estate developer Dell Webb sold the medical building, Felix was forced to find another location. He moved to 801 N. Wilmot Road when he
Robert Felix, second from left in the front row, with members of the board of Tucson Country Club in 1979.
rented space from Dr. Michael Don. For the final 15 years of his practice, Felix followed Don relocating to Old Farm Executive Park, 6049 E. Grant Road. Felix’s daughter Debbie is now office manager there. Felix and his wife Dottie were married in 1952. “I married a widow with three children
and then we had three more children,” he said. After 45 years of marriage Dottie died in 1997 and Felix retired shortly thereafter. A loyal University of Arizona Wildcats fan, Felix bleeds “red and blue” followinig the football, basketball, volleyball and softball teams. Since 1948, he has held season tickets
for both basketball and football. He takes pride in being one of six living charter members of the Tucson Conquistadores, who are celebrating their 50th anniversary this year. A group of 41 businessman were among the founding members. “Roy Drachman, thought forming the organization would help Tucson could get a PGA golf tournament,” Felix remembers, adding, “One year, golf pro Rickie Rarick couldn’t pay off the entire purse, which was then $35,000. Roy dug in his pockets to pay the balance of the purse.” In 1966, the Conquistadores took over sponsorship of the PGA Tour stop in Tucson, then called the Tucson Open, and moved it to Tucson National Country Club. In previous years dating back to 1945, the golf tournament had been at El Rio Golf Course. The Conquistadores, who have continued to work with what is now Accenture Match Play Championship in February, have raised more than $15 million for youth sports causes. Through the Conquistadores, Felix says, “I met a lot of people who I would never have met, whose paths I would never crossed. And vice versa.” Do you have an historical Tucson story to share? Contact Mary Levy Peachin at email@example.com. Her historical columns appear the first week of each month in Inside Tucson Business.
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12 APRIL 5, 2013
INSIDE TUCSON BUSINESS
GOOD BUSINESS ON GUARD
It’s not the mistake, it’s what you do next to keep customers
“It’s a chamber of commerce day” isn’t about beautiful Southern Arizona weather... it’s about creating a strong local economic climate. Join the Tucson Metro Chamber today. Phone (520) 792-1212 or visit TucsonChamber.org. XNLV82747
Growing Businesses. Building Communities.
Every business messes up from time to time. Sometimes the slip-up is due to something out of a business’ control, and other times an employee or an owner just makes a mistake. While it’s important to correct the underlying issue that caused the customer dissatisfaction, it’s just as important to effectively deal with the fallout. Earlier this year a Carnival Cruise ship was stranded in the Gulf of Mexico for five days after a fire broke out on board, knocking out the ship’s power and plumbing. The headlines that were spread across newspapers and the Internet depicted what most travelers would consider a vacation nightmare. So how did Carnival handle the situation? Well, passengers received a refund for the cost of the cruise, $500 cash, and a voucher for a future cruise. What they didn’t get was much of an apology, indeed, even much acknowledgement from Carnival Chief Executive Mickey Arison, who stayed out of sight, except to attend a Miami Heat basketball game. Jeffery Sonnefeld, a Professor of Management Practice at Yale School of Management, says that this was a huge
blunder by Carnival and Arison and a textbook example of how to destroy trust between a business and its customers. In being absent throughout his KIM STATES company’s crisis, Sonnenfeld says Arison’s lack of action was a “bold public show of arrogant indifference,” not just to the stranded passengers on the ship, but to millions of potential customers around the world. When a crisis strikes a company, consumers want to see the company’s leaders out in front dealing with the problem and showing they care. In contrast to Arison’s lack of action, Kim Bhasin, who writes for Business Insider online, points to another CEO who did act responsibly when a crisis engulfed his company. You may recall in 1996 Washington state health officials confirmed a link between a local E.coli outbreak and Odwalla’s
TUCSON BBB ACTIVITY REPORT MARCH 2013 Top 10 most complained about industries
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New car auto dealers
Used car auto dealers
Auto repair and service
Auto sound system sales and services
Top 10 most inquired about industries
But we won’t tell you who.
Air conditioning contractors and systems
Auto repair and service
Used car auto dealers
General construction contractors
Pest control services
Source: BBB of Southern Arizona
fresh, unpasteurized apple juice. One child died and more than 60 people became sick, prompting more than 20 lawsuits. Bhasin points out that CEO Stephen Williamson immediately recalled all Odwalla products containing apple or carrot juice, which cost the company around $6.5 million. He accepted responsibility when talking to the media and promised to pay all medical costs for those affected by the outbreak. The company had faced its worst-case scenario: death caused by one of its food products. Odwalla lost a third of its market value by the time the situation subsided, and pled guilty to criminal charges relating to the outbreak, which resulted in a $1.5 million fine from the U.S. Food and Drug Administration. But Odwalla was still standing. It focused on customer relations in the months following, attempting to rebuild trust. Odwalla fixed the contamination issue, improved its quality control and safety system, re-launched its apple juice two months later and in 2001, Coca-Cola bought Odwalla for $186 million. Thankfully most businesses will never experience a crisis on the scale of what Odwalla and Carnival experienced, but the same principles for handling major crises should be applied to handling everyday consumer complaints and concerns. Minor customer complaints can turn into much bigger issues if not handled correctly. If your company receives a complaint, here are a few tips for how you can handle it and not only maintain trust, but in some cases, strengthen it: • See it as an opportunity. A customer complaint is not an insult or personal affront. It is an opportunity to improve. You should take pride in your business, but don’t let your ego get so wrapped up in it that you can’t see the opportunities to meet or exceed your customers’ expectations. • Respond! One of the most common reasons consumers file complaints with the Better Business Bureau is either a lack of response, a delayed response and in some cases a just plain bad response. If you aren’t responding to your customers’ concerns immediately, and in good faith, they will assume you are not going to fix the problem, and seek a solution elsewhere. • Sympathize at the outset. Acknowledge the customer’s feelings without necessarily agreeing with their position. Be friendly, open, non-defensive and sincere. Whether you tell them or show them, customers needs to know they are important to your business. Apologize for the misunderstanding, even if it was on the part of the customer. If the error was the customer’s, allow him or her to save face. You want the customer to return and spend more money with your business!
Contact Kim States, CEO of the Better Business Bureau of Southern Arizona, at kstates@ tucson.bbb.org or (520) 888-6161. The BBB website is www.tucson.bbb.org. On Guard appears the first week of each month in Inside Tucson Business.
APRIL 5, 2013
14 APRIL 5, 2013
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APRIL 5, 2013
BRIEFS GET ON THE LIST
Next up: Landscape architects and Pool builders Research is underway gathering data for Inside Tucson Business’ 2014 Book of Lists. Upcoming lists are: • April 12: Residential real estate firms, Real estate brokers, Appraisers • April 19: Architectural firms, Interior design firms, Engineering firms • April 26: Landscape architects, Swimming pool builders • May 3: Defense contractors If your business has been on a previous list in one of these categories, look for an email from Jeanne Bennett, List researcher for Inside Tucson Business, with details on how to update your profile. If you would like to add your business to one of these lists, go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page to create a profile.
HOSPITALITY & LEISURE
Pascua Yaqui tribe taps interim CEO for casinos Alex Amador, director of financial operations, has been named interim chief executive officer of Pascua Yaqui Gaming Enterprises replacing Wendell Long who has moved to Manistee, Mich. as the new general manager of the Little River Casino Resort. Amador holds a business administration degree from California State University Fresno and has been a tribal employee since 2004. The tribe’s gaming properties include Casino del Sol Resort, 5655 W. Valencia Road, and Casino of the Sun, 7406 S. Camino de Oeste.
Long had served as CEO since 2006. As part of a management succession/career training program, Amador was one of five candidates in the running to replace him through a program called STEP: Supporting Tribal Employment Partnership. Long had long maintained that his goal was to “work myself out of a job.” The tribal council’s long-term goal is to place Pascua Yaqui tribal members in upper management.
dent’s State of the Union call for investments in research and development to fuel innovation and economic growth. The initiative would accelerate the invention of new technologies to help researchers produce real-time pictures of complex neu-
ral circuits and visualize interactions of cells that occur at the speed of thought. Martinez is a practicing physician-scientist with his own research laboratory, in addition to leading three interdisciplinary research centers at the UA.
Toni Hellon sworn-in as Superior Court clerk Pima County has a new clerk of the Superior Court after Toni Hellon was sworn in Monday (April 1) as the eleventh person to hold the office since statehood. Hellon, who had been chief deputy clerk since February 2007, was appointed by Gov. Jan Brewer to fill out the remaining 21 months of Patricia Noland’s term. Hellon had been a state senator from 2001 thourgh 2006. Noland, who had been in the elected position for 14 years, resigned effective March 31 to spend more time with her family.
A Tucson Classic.
UA scientist at Obama BRAIN Initiative unveiling Dr. Fernando D. Martinez, head of the Bio5 Institute at the University of Arizona, was among scientists invited to join President Obama Tuesday at the White House for the unveiling of the “BRAIN” Initiative — a new research effort to revolutionize understanding of the human brain and discover new ways to treat, prevent and cure brain disorders. The BRAIN Initiative — short for Brain Research through Advancing Innovative Neurotechnologies — builds on the Presi-
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The Cedar Rapids, Iowa-based data-storage company Involta has completed a facility in Tucson. The $10-million center, at 1215 E. Pennsylvania St., holds 600 cabinets of data-storage infrastructure. The company has said about 24 people will work at the new location. It’s the first large-scale commercial data-storage facility in the Tucson region. Pictured above at a ribboncutting event on Wednesday are: From left, Larry Lucero, senior director of customer programs and services of UNS Energy Corp, Bruce Lehrman, CEO of Involta, Lonnie Bloomquist, CTO of Involta and Tucson Mayor Jonathan Rothschild.
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16 APRIL 5, 2013
INSIDE TUCSON BUSINESS
W FOLLO ADER THE LE
APRIL 5, 2013
OUT OF THE OFFICE ON THE MENU
ARTS & CULTURE
The theme’s the thing at Fini’s and Playground
Ballet Tucson caps season with ‘Dance and Dessert’ fundraiser
jalapeno, prickly pear simple syrup and a My first restaurant job was in 1984 at a salted and cayenne peppered rim. Wienerschnitzel on Broadway near Wilmot Surf’s up at Sunrise and Swan. Road. It was also my introduction to themeInviting its guests to remember what it based restaurants, and my hot dog higherwas like to be a kid, Playground, ups took the theme thing quite 278 E. Congress St., is a restaurant seriously. In fact, during key that introduces a theme built promotions, I was required to don around fun and games, and a the corporate headwear, a cap in happy hour owner Kade Mislinski the shape of a giant chili dog calls “recess.” With swing sets stretching from ear to ear. I hanging from the ceiling, hopworked the drive-through on scotch leading the way back from weekend nights, in that ridiculous the restrooms, and a floor made of cap. Suffice it to say, I didn’t date more than 2,500 marbles, this much in 1984. place takes you back. But while the Themed restaurants seemed atmosphere at Playground is all to have all but disappeared but MATT RUSSELL about childhood fun, its culinary two Tucson establishments are program is anything but childish. carrying on, with patrons fully The theme might trigger memories of engaged in the fun that the owners set out to chocolate milk and bologna sandwiches, but inspire. foodies will find a home here. Dishes that For Tucsonans, hitting the beach used to have rotated seasonally have included an mean packing the car and heading to San arugula, melon and proscuitto salad and Diego. Today, at Fini’s Landing, 5689 N. Swan mushroom bruschetta with a balsamic Road, co-owners Doug “Fini” Finical and reduction. The cocktail program pulls the Scott Mencke have brought the beach to the theme through as well, with selections such Catalina Foothills, complete with flip-flop as the “Bookworm,” featuring bourbon, handles on the front doors and a bar in the bitters and an apple ginger liqueur. I surely shape of a large fishing boat. I could have didn’t eat or drink like this as a kid, and I’ve sworn I saw Jimmy Buffett searching for his been having some fun catching up — my lost shaker of salt on my last visit. kind of homework! A beach theme has the potential to be What other restaurant theme have you overdone, but Finical and Mencke have run across that has captured your imaginafound the right balance with Fini’s, and this is tion? If it’s anything to do with hot dogs, I the case on the menu as well. have a certain cap you can borrow. What fascinates me most from a culinary perspective is the selection of “pangas” on the menu, named for the fishing skiffs Contact Matt Russell, whose day job is common in Mexico. The pangas at Fini’s are CEO of Russell Public Communications, at grilled romaine lettuce boats prepared six email@example.com. Russell is also the different ways, filled with such dockside host of “On the Menu Live” that airs 4-5 p.m. delicacies as Cuban braised beef and grilled Saturdays on KNST 790-AM and he does the salmon. You’d be smart to pair those boats up Weekend Watch segment of the “Buckmaster with a “Spicy Señorita,” Fini’s margarita that Show” from noon-1 p.m. Fridays on KVOI took first place at the Tucson Taco Festival 1030-AM. last year. It features tequila, fresh lime juice, a
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P: G U N G I S FREE TO
Ballet Tucson’s final performance of the season is the annual “Dance and Dessert” this weekend that pairs classic and new dance works with desserts from Tucson restaurants as a benefit for the ballet company. Peerformances are at 7:30 tonight (April 5), 2 and 7:30 p.m. Saturday and 1 and 5 p.m. Sunday at the Stevie Eller Dance Theater, 1737 E. University Blvd. on the University of Arizona Mall. Tickets are $30 or $22 in groups of 10 or more. Buy them online at www. BalletTucson.org.
Master of Fine Arts Thesis show opening today at the Joseph Gross Gallery, 1031 N. Olive Road on campus. The works of 12 talented students who have completed their studies will be up through May 14. The gallery is open weekdays from 8 a.m. to 5 p.m.
Fans of the cult TV show “Mystery Science Theater 3000” — or MST3K — will want to be at the Loft Cinema, 3233 E. Speedway, at 7 p.m. Saturday when the series creator and HERB STRATFORD original host Joel Hodgson will present a special show called “Riffing Myself.” General Tucson Chamber Artists admission tickets are $20 or $18 for Loft presents performances of Brahms’ Liebesmembers. There is a $45 special VIP lieder Walzer for Chorus and Four-Hands package that includes special seating for Piano and Martin’s Mass for Double Choir the show and a meet-and-greet afterwards that will include a performance from the with Hodgson. Arizona Choir from the University of Arizona and its conductor Bruce Chamberlain joining TCA’s choir. Performances are at 8 tonight at Grace St. Paul’s Episcopal A pair of classic film titles are returning Church, 2331 E. Adams St., and 3 p.m. to the multiplex this weekend in the form Sunday at Catalina United Methodist of a re-release of a sci-fi favorite, and Church, 2700 E. Speedway. Tickets are there’s a new version of a horror masterpriced at $20 or $30. Buy them online at piece. The 1981 cult-classic “Evil Dead” has www.TucsonChamberArtists.org. been re-imagined with more scares and And at 7 p.m. Sunday trumpet maestro gore. The 1993 Steven Spielberg classic Chris Botti performs at Centennial Hall, 1020 E. University Blvd. on the UA campus. “Jurassic Park” is being re-released in 3D, which should add a new dimension to the Individual tickets are priced from $35 to dinosaurs-run-amok premise. A much $80 with discounts for children, students, smaller film is the excellent “Ginger and seniors, military and UA faculty and staff. Rosa,” which follows two girls in 1960s Buy them through UApresents at www. England during the Cuban missile crisis. uapresents.org.
Art Check out the next generation of artists coming out of the University of Arizona as they display their work in the annual
Contact Herb Stratford at herb@ ArtsandCultureGuy.com. Stratford teaches Arts Management at the University of Arizona. His column appears weekly in Inside Tucson Business.
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18 APRIL 5, 2013
INSIDE TUCSON BUSINESS
FINANCE YOUR MONEY
Target: Getting to the 0% tax bracket in retirement Retirement is for the rest of your life. The only thing better than a healthy, happy retirement is a tax-free retirement. With government spending seeming to have no limits, the consequences of the future tax burden are severe. Targeting a low or zero percent tax bracket for retirement will let you enjoy your own money. First, let’s examine the three types of tax portfolios that exist now. 1. The taxable portfolio: Consists of investments such as stocks, bonds, mutual funds, money market and CDs. Typically owners pay taxes on these investments every year as they grow. So, why have them? They provide liquidity needed for emergencies or unexpected circumstances. Financial experts generally agree you should have about six months of funds to cover unexpected expenses. 2. Tax deferred portfolio: Taxed as ordinary income upon distribution, it will be most effected by the increase in tax rates over time. Tax deferred portfolios consist of: • IRA. If your goal is the zero percent tax bracket, allowing your IRA to grow unchecked can thwart efforts to reach the zero percent tax bracket. Ask you CPA what your standard deduction is and what your personal exemptions are. Let’s say it totals $20,000. You could therefore withdraw up to $20,000 from your IRA without incurring taxes as long as you are at least age 59½. A married couple retiring today (absent any other tax deductions) has a standard deduction of $11,900 (2012 tax year) and personal exemptions of $3,800 each. Therefore, they can withdraw up to $19,500 from their IRA without paying taxes. Determine how many years you have to retirement. Add 3 percent for inflation to target the amount of money you want to have in your IRA to offset what you will be required to start taking at age 70½ when required minimum distributions begin. If you anticipate your distributions will be higher than the combined standard deduction and personal exemptions, consider systematically converting portions of your IRA to a Roth. Yes, you will pay taxes now but it will enable you to have a tax-free distribution at retirement. • 401(k). Because many employees receive matches from their employers, it’s easy for them to routinely allocate all of their retirement dollars to this account. By growing this account through excessive contributions, you compound the same tax problem experienced with the IRA. The solution is to consider contributing up to the employer match but not more. The downside is you will lose tax deductions while
working. However, the purpose of a retirement account is not to receive tax deductions but to maximize cash flow in retirement, when you can least afford to pay taxes. 3. The tax-free portfolio. There SUSAN L. MOORE are two qualifications, it must actually be tax-free from federal, state and capital gains taxes and distributions from the portfolio should not count against the Social Security tax threshold. As a caveat, municipal bonds, widely renowned as tax-free investments, fail on both counts. So, what’s left? Roth IRA • Contributions up to basis can be withdrawn pre-59½ with no penalty • Growth on contributions can be withdrawn tax free after 59½ • Distributions do not cause Social Security to be taxed • There are no required minimum distributions at 70½. • You may contribute $5,000 per year under age 50 and $6,500 age 50 or older to your Roth • You can convert any amount of your existing 401(k) or IRA to a Roth at any age Cash Value Life Insurance • Death benefit passes to heirs tax-free • Dollars can be distributed pre-59½ without penalty • There are no required minimum distributions at 70½ • Contributions are tax-deferred • Distributions can be tax free and cost free through a combination of withdrawals to basis and zero percent loans on growth. • There are no contribution limits • There are no income limitations • Distributions do not cause Social Security to be taxed A successful accumulation strategy will enable you to draw tax-free streams of income from a Roth IRA, Cash Value Life Insurance and a traditional IRA (up to the standard deduction and personal exemptions) as well as Social Security. That should put in the zero percent tax bracket, giving you peace of mind and protection even in the fact of higher taxes in the future.
Contact Susan L. Moore Vault, president of Moore Financial Strategies, at susan@ moorefs.com or (520) 296-4464. Moore Vault hosts “Safe Money Strategies” Saturdays from 7-8 a.m. on KNST 790-AM and noon-1 p.m. on the Voice KVOI 1030-AM.
TUCSON STOCK EXCHANGE Stock market quotations of some publicly traded companies doing business in Southern Arizona
Apr. 3 Mar. 27 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 0.10 18.20 48.69
0.02 0.07 18.46 47.46
0.00 0.04 -0.26 1.23
0.02 0.01 9.56 35.20
0.08 0.51 20.09 49.37
8.27 3.51 2.66 11.81 62.58 8.53 104.24 21.65 61.70 3.94 23.93 42.50 41.82 45.26 47.82 16.46 106.36 35.06 54.13 14.56 78.85 70.92 22.84 31.55 29.09 70.36 73.33 212.66 36.10 64.59 6.65 46.85 34.75 20.02 47.05 32.04 1.25 38.93 37.87 43.93 64.23 42.39 41.00 43.43 54.24 70.18 14.43 19.01 58.02 59.51 25.20 51.65 49.53 13.96 12.54 47.41 43.34 67.98 21.23 34.15 58.10 28.66 138.84 17.12 15.53 33.67 76.00 46.30 36.67 13.46 23.88
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
-0.22 -0.50 0.08 -0.42 -0.02 -0.18 1.06 -0.49 -0.54 -0.10 -1.17 -1.98 0.07 -1.47 -1.14 -0.62 -0.28 -0.07 -0.85 -2.03 -0.13 -1.43 -1.55 -1.82 -2.66 0.72 -1.84 1.77 0.43 -0.88 0.01 -0.94 -0.91 -2.08 0.47 -1.07 0.01 -2.85 -0.32 0.23 0.42 0.66 -0.62 -3.82 -0.41 0.28 -0.47 -1.32 -0.39 1.68 -1.14 1.50 -1.14 -2.07 -0.66 -0.01 -0.61 -1.08 0.10 -0.93 1.47 -3.67 -2.00 -0.26 -1.13 -0.11 1.22 -0.94 -0.30 -0.23 -1.11
7.97 0.36 1.48 6.72 50.95 5.30 78.21 11.20 50.89 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 7.45 28.26 57.18 28.53 29.80 8.00 17.45
10.24 4.52 3.13 12.94 64.79 10.57 105.53 23.98 63.07 4.93 25.45 47.92 42.61 48.59 50.59 17.50 107.75 43.43 56.07 17.25 89.98 74.62 25.56 43.65 37.74 71.45 75.75 215.90 37.70 68.41 6.89 51.00 38.62 22.43 55.25 33.28 1.81 43.90 39.98 44.78 66.29 42.89 42.27 48.62 55.50 71.25 36.89 21.97 59.34 59.95 25.66 52.09 68.77 16.32 13.58 48.11 44.34 69.84 21.51 35.73 58.51 32.95 143.00 38.34 17.43 35.46 77.60 48.18 38.20 14.51 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.
APRIL 5, 2013
INSIDE REAL ESTATE & CONSTRUCTION
Traditional retailers ready for online sales tax for homes priced from $140,000 to $250,000. And 7.4 months for homes priced from from $250,000 to $500,000. The amount of inventory has shrunk about 9 percent in each price point from January. • Purchasers of vacation and second homes in the region were key factors, especially for lower-priced homes. Most of these buyers came from the West, Midwest and Canada. Roof, based at 4514 E. Camp Lowell Drive, expects “continued improvement” in the near term. As mortgage rates remain near historic lows, mortgage affordability will stay high.
By Roger Yohem Inside Tucson business
Sales and leases Roger Yohem
The Marketplace Fairness Act, described as a bipartisan bill in Congress “to level the playing field” for brick-and-mortar retailers, has a good chance of raising revenue for the federal government beginning with the 2014 budget. In late March, the bill received a strong vote of public support in the Senate. The proposed federal law would significantly expand the scope of collecting sales taxes from online retailers. Opponents contend such a law would hurt Internet sales and unfairly burden Web-based retailers with the administrative costs of collecting taxes for states. Proponents, including the International Council of Shopping Centers, like the bill because it will close the tax-free loophole and capture avoided tax revenue for struggling state budgets. To become law, the proposal requires ultimate approval by the House and Senate. For the past two years, online sales taxes have been discussed at the annual Global Retailing Conference presented by the University of Arizona Terry J. Lundgren Center for Retailing. Lundgren, CEO of Macy’s Inc. and a University of Arizona graduate, has taken steps to stay ahead of the issue. “We are re-imagining the marketing process for the Macy’s brand,” he told attendees in 2011. With some 800 retail sites across the nation, Lundgren said that each of them, in a way, “already is an online fulfillment center.” Part of his re-imagining plan was executed late last month with the announcement that Macy’s is expanding its online fulfillment center in Goodyear, west of Phoenix. About 360,000 square feet of space will be added to the 600,000 square-foot facility that opened in 2008. It is the retailer’s fourth major national fulfillment center and construction is set for completion in spring 2014. That move will compliment Lundgren’s idea to re-configure existing brick-and-mortar stores. About 500 Macy’s stores “will be equipped to fulfill orders by the end of this year, handle customer orders placed online, as well as ship products to customers who shop in stores that may not stock the specific product they need. We can access the total inventory
The inventory of homes for sale in the Tucson region continues to decline across all price points.
of our company for every customer,” said R.B. Harrison, Macy’s chief omnichannel officer. Macy’s is investing $35 million in the Goodyear center expansion. Once completed, employment is expected to grow from 500 to 625 full-time jobs. The bottom line, regardless of what Congress does, is to capture as much market share as possible from both traditional retail and online sales. The sales tax issue is neutralized. “Our position is to serve customers no matter wherever, however and whenever they prefer to shop,” said Harrison.
Sequester effects In March, the federal government’s sequester that wasn’t supposed to happen happened. Long before it began, the consensus was that it is bad budget policy: $85 billion in automatic, across-the-board spending cuts. In an analysis of the sequester and its likely effect on the Tucson region’s real estate market, Ginger Kneup, owner of Bright Future Real Estate Research, pointed out two areas of concern. The policy likely will impact the Federal Housing Administration (FHA) and local jobs. The FHA will reduce staff “who underwrite and process FHA-backed loans and manage the sale of foreclosed properties.
WEEKLY MORTGAGE RATES Program 30 YEAR 15 YEAR 5/1 ARM
One 12 Month 12 Month Year Ago High Low
3.50% 3.625%APR 3.50% 3.625%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.
Fewer people equals slower processing time,” said Kneup. “My other concern with the macro-economic policies is related to government jobs, both direct and indirect,” she said. “Sequestration takes a broad swipe at defense spending which will directly impact the support and staffing of Davis-Monthan Air Force Base and indirectly result in fewer big government contracts with Raytheon.” Raytheon Missile Systems, with 11,500 employees, was the No. 2 largest employer in Southern Arizona last year on Inside Tucson Business’ Book of Lists. Davis-Monthan, at 10,330 employees, was No. 3. “The strength in Raytheon’s employment is not just in size, but quality. These high-paying jobs support home ownership at the move-up level and above, right where the new construction home is at this time,” she said. In Kneup’s view, there is a simple solution to the federal budget cuts: grow the local economy with higher-paying jobs in the private sector.
Housing tidbits Jonathan Roof, vice president at Private Banking/Wealth Management Group at Mutual of Omaha Bank, likes to talk economics, statistics and housing. Recently, he shared some of these tidbits about real estate: • Statewide, new home builders have recovered from the market low of September 2011. At that time, new homes accounted for 5 percent of sales. Now it’s 12 percent. • Nationally, Lennar Corporation has been producing about 500,000 homes annually in recent years. To keep up with rising demand, CEO Stuart Miller said Lennar could increase to 1.25 million a year under certain conditions. • In the Tucson region, improvements are solid in all price segments. For February, there was a 3.14 month supply of homes priced under $140,000. It was 3.75 months
• Arizona Institute of Urology leased 2,983 square feet at 4811 E. Grant Road, Suite 261, from Crossroads Canada LLC, represented by Andy Seleznov, Larsen Baker. The tenant was represented by James Robertson Jr., Realty Executives. • National Vision Inc. leased 2,530 square feet at the southwest corner of Interstate 19 and Irvington Road in Tucson Spectrum, from DDR, represented by Nancy McClure and Jayme Fabe, CBRE. The tenant was represented by Jeff Zellet, Picor Commercial Real Estate Services. • Crossroads Community Baptist Church leased 2,424 square feet at 3855 S. Evans Blvd., Suite 405, from Ajo/Evans Business Park LLC, represented by Jeff Zellet and Pat Welchert, Picor Commercial Real Estate Services. • Stewart Title and Trust leased 2,200 square feet at 3865 E. 34th St., Suite 108, from A&P Investments, represented by Rob Glaser, Picor Commercial Real Estate Services. • Staff Matters Inc. leased 1,750 square feet at 2251 E. Grant Road from Arroyo Colorado LLC. The tenant was represented by Ian Stuart, CBRE. • Subway leased 1,606 square feet at 1990 E. River Road, Suite 120, from La Cholla and River Road Associates LLC, represented by Craig Finfrock, Commercial Retail Advisors. • Progect Advertising LLC leased 1,600 square feet at 326 S. Wilmot Road, Suite B220, from Adobe Office Investments LP. The transaction was handled by Andrew Sternberg and Robert Nolan, Oxford Realty Advisors. • Laboratory Corporation of America leased 1,540 square feet at 698 E. Wetmore Road, Suite 350, from First Avenue/Wetmore Office Plaza LLC, represented by John Yarborough, Romano Real Estate.
Email sales and leases and other real estate news items to firstname.lastname@example.org. Inside Real Estate & Construction appears weekly.
20 APRIL 5, 2013
INSIDE TUCSON BUSINESS
EDITORIAL BIZ BUZZ
What do you like? What don’t you like? This week I’d like to ask a favor. It has to do with what you want from Inside Tucson Business. In these days of technological breakthroughs and new gadgets, how you get information is changing faster than ever. Is Inside Tucson Business delivering the information you want? We’ve done surveys and we’ll probably do more. But first I’d like to ask you, our readers, to give me some feedback. DAVID HATFIELD I hope you’ll take some time to look over an issue of Inside Tucson Business if you’re reading this in print or view a few days on the www.InsideTucsonBusiness.com website. I mean really take a critical look. What do you think of the news stories? In print we’re doing reports about trends and not so much spot news. Are there certain business sectors where we’re missing? Do we focus too often on certain areas? Are we devoting too much to opinions? I was reluctant to do too much in the way of opinions when I took this job in November 2004 and I keep coming back to the idea of reducing the number of columns. Certain features appear every week. Is that too often for things such as real estate and construction or media? Each week Matt Russell and Herb Stratford offer us some diversions of things to do outside the office with their restaurant and arts and culture columns. Do any of these make a difference in your reading habits? The printed edition of Inside Tucson Business has a regular feature called “Good News” highlighting positive happenings for the region introduced during the recession and another called “Insider” containing information from sources not normally reported in other news media. Have they outlived their purpose? Each week we carry business public notices covering bankruptcy filings, foreclosure notices and federal, state and mechanic’s liens. Do you read them? Do you care? We’re about to add listings of new business filings, are you interested in seeing those? Each week — this one excepted — we’ve done a profile on a business. Usually we tie them to the Lists that are published that week. We’ve got a waiting list of businesses to be profiled but I’ve been told by a consultant they can appear “too soft” and may not be the kind of information readers want. We also have features that rotate through each month such as Mary Peachin’s feature on Tucsonans who’ve earned a place in history for their instrumental work in our region’s development, Sam Williams’ columns on sales, Dave Tedlock’s columns on technology, Patrick McNamara’s “Next Generation” feature on things being developed in Tucson and one I write about business travel news pertaining to Tucson. I know the online versions of these columns get read but what would happen if we took them out of the printed Inside Tucson Business? Should some appear more often? What I’m saying is anything and everything is on the table, both in the way of adding features and getting rid of some readers consider marginal. At your convenience, please send me an email — the address is at the bottom of this column — with your thoughts. My goal is to compile the common threads into something we can evaluate further. As this region’s only regular business-to-business news publication, we want Inside Tucson Business to deliver what’s most important to business leaders. I look forward to hearing from you, good or bad.
Contact David Hatfield at email@example.com or (520) 295-4237.
Healthy banks = healthy region, right? As sluggish as the recovery of the Tucson economy seems, we note that in the midst of financial chaos and bank closures in Cyprus, a report out at the end of March said that just four banks in the U.S. had failed in the first quarter of this year. We’ve had it pretty good with our banks in Tucson as well. That’s not to say that getting a loan is necessarily any easier but there is satisfaction in knowing that our financial institutions have weathered the past five years better than in other parts of the country. In fact in that time, federal regulators shut just one bank operating in Tucson and that was way back in July 2008 when 1st National Bank of Arizona was shut down. The Scottsdale-based bank had two offices in Tucson that were shut down on a Friday afternoon and the following Monday reopened as branches of Mutual of Omaha Bank. At the time, bank closings weren’t the routine. It was just the sixth bank closure in the U.S. that year. The following year 21 banks were shut down across the U.S. in just the first quarter of 2009. Regulators closed 41 banks in the first quarter of 2010, 26 in the first quarter of 2011, 15 in 2012 and now just four in the first quarter of 2013. Again, not one of them — or any bank closure since then — has involved a bank operating in the Tucson market. In fact, quite the opposite. In 2012 it was Tucsonbased Commerce Bank of Arizona that was tapped by the Federal Deposit Insurance to take over the deposits of a failed bank in Mesa in 2010. Then in February, First Scottsdale Bank announced it would acquire Commerce Bank, taking the latter’s name in deference to the name that doesn’t sound so locally confining. While Tucson may lose a home-grown bank headquarters, the move brought former Tucson banker John P. Lewis out of retirement to run the Southern Arizona offices. There is also confidence for customers in that First Scottsdale Bank was one of 359 banks in the U.S. to
earn a perfect score in a measure of bank safety done in 2012 by MSN Money. Speaking of Lewis, his Southern Arizona Community Bank was acquired in 2010 along with Bank of Tucson, run by Mike Hannley, by Los Angeles-based Grandpoint Capital Inc. and a group of Tucson-based investors lead by auto dealer Jim Click. Both of the Tucson banks were financially strong and stable but under a cloud of a larger holding company that tried to shed assets as fast as it could to raise money and eventually filed for Chapter 11 bankruptcy protection in 2012. In the meantime, Bank of Tucson has regained a five-star superior ranking from the independent financial research firm, Bauer Financial. Bank of Tucson shares that five-star status with Bank of the West, Great Western Bank and Mutual of Omaha Bank, along with credit unions Pima Federal, Pyramid Federal, SunWest Federal and Vantage West. Just as important, reports such as those from Bauer Financial show that financial institutions in the Tucson region are continuing to get healthier. There’s also satisfaction in being away from LaGrange, Ga.; Chicago; Andover, Minn.; and University Place, Wash., locales that were homes to this year’s four bank failures. Bankers and those running some other financial institutions have taken heat from those who say they aren’t lending money. Their counter-argument has been a lack of demand from qualified borrowers. Not to mention there is increased pressure from federal watchdogs. But judging from the health of many financial institutions in the Tucson region, we weren’t as bad off as some other places. We should feel better about the financial health of our region and its lenders, shouldn’t we?
APRIL 5, 2013
OPINION WAKE UP, TUCSON
See past rhetoric, keep your eye on the ball I know your news cycle is dominated by gay marriage and guns. Ever since Shaun McClusky — we call him Cap’n Chaos on our radio show — started raising funds for the Armed Citizen Project, it has been a veritable gun control Wrestlemania. Tucson was once again on “The Daily Show” Monday. Mark Kelly is making embarrassing videos about buying guns by using his wife as a publicity prop. As Bill Murray said in “Ghostbusters,” “Cats and Dogs living together. Mass hysteria!” Two folks who have been front and center on advocating for more gun control are Tucson City Council members Steve Kozachik and Karin Uhlich. They are two of the three council members running for re-election. This week, Ms. Uhlich was censuring the latest NRA report about school safety. And while it’s fun to see Kozachik hanging out with the crew from “The Daily Show” and wrapping liberal talk show host Alan
Colmes, there are some issues getting put on the back burner. It’s easy to attempt to take a moral high ground on the gun issue, while waffling on important municipal issues. CHRIS DeSIMONE Let’s start with the city’s pension problems. The unfunded pension liabilities have exploded to $1.07 billion. In fiscal year 2010-2011 it was about $700 million and the year before that it was about $600 million. This is for all of the city’s pension plans. City Finance Director Kelly Gottschalk must be freaking out trying to find the money to make the required contributions. It makes you wonder, when council members talk about caring for employees, do they mean only those who are currently
on the payroll? Now, let’s head over to the police department where the city used to have about 1,200 officers. Now, the number is down to around 950. By most accounts the department is about 150 to 165 officers short of the minimum for proper staffing. Word is spreading that to meet its budget shortfalls, cops will be asked to do more with less. Further cuts might prevent the department from rescuing a council member’s drunk chief of staff from a street median. At least they wouldn’t miss being cursed at by said rescuee. Then there’s the discussion that’s not happening about increasing the percentage of money going into the city’s transportation budget to fix streets and potholes. Yes, voters approved $20 million a year for five years to overhaul roadways that have fallen into disrepair, but that’s only a drop in the bucket to fix the deterioration that’s happened because the city has failed put money towards maintaining streets.
Local electeds continue to whine about a reduction in state Highway User Revenue Funds but that’s getting old, and it’s not believable when other municipalities in Arizona are dealing with the same cuts. The difference is those other electeds put a priority on street maintenance while Tucson pays for consultants and Kidco. These decisions can be difficult. They involve some big numbers and multi-syllabic words. But it’s a lot easier to get on a soapbox and pontificate about gun control, regardless of whether it will have any impact. It’s important to see past this rhetoric. Instead voters should concentrate on the issues they know will lead to a resurgence for Tucson. Keep your eye on the ball.
Contact Chris DeSimone at firstname.lastname@example.org. DeSimone co-hosts “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM.
Library brings small businesses, nonprofits together to talk technology What if your library hosted a free monthly forum where people who run small businesses, nonprofits and other organizations could get together and talk informally about emerging technologies? What if you could meet other Tucsonans who have actually tried some of these tools and strategies? Catalyst Café is a series of meet-ups provided by Pima County Public Library. The topic changes every month, but the comfortable, informal vibe remains the same. And many people are taking note. Mia Schnaible from the Arizona International Film Festival and the Screening Room participated on February’s panel, titled “Build the Buzz: Launching a Business with Social Media,” and she had a blast. “It was a terrific sharing of ideas and solutions,” Schnaible said. “I picked up some tips, too.” In its first year, the library’s Catalyst Café has presented panels on crowdfunding tools, social media best practices, and using Pinterest as a branding tool. An expert in “gamestorming” presented a lively discussion to 40 participants to explain the new way for organizations to brainstorm ideas. We learned how to incorporate games involving index cards, sticky notes, and whatever creative juice you bring to the table to get the ideas flowing. After attending one workshop, Debbi Wainright located a partner for her own community café and is in the process of establishing her own nonprofit organiza-
tion. “The Catalyst Café workshop is one of the many programs at the library that has helped me start a community café,” Wainright said. “But the social media café session LISA WAITE BUNKER really helped me step things up.” The key seems to be about bringing people together. At the Catalyst Café on Tuesday (April 9), a panel of Tucson freelance writers, software entrepreneurs and social media managers will be coming to the Joel D. Valdez Main Library, 101 N. Stone Ave., to discuss what they learned at the South by Southwest (SxSW) Interactive conference held in March in Austin, Texas. SxSW Interactive brings together software developers, entrepreneurs, nonprofit organizers, and social media managers who are looking for ways to put technology to work for social good. It’s not a coincidence that SxSW inspired the library to launch a program targeting businesses and nonprofits. The conference is also well-known for being hip, casual, and the place to meet some of the best and brightest thinkers and doers in the tech and media world. Catalyst Café offers a chance for members of the community to see the workings of other organizations,
says Andrew Lenards from iPlant Collaborative, a group that is focusing on innovation in the plant sciences. Lenards has presented at Catalyst Café and believes that learning how others apply something new and then modifying it for yourself can make a big difference. “If you’re looking to use a new tool or a new process, getting you from zero knowledge to ‘getting by’ is often the toughest obstacle.” Learning something new isn’t always the only motivation for Catalyst Café participants. There’s also something to be gained about sharing your experiences with others. Marge Pellegrino, who works with The Owl & Panther Project, recently sat on a panel to discuss the organization’s success with online fundraising. The nonprofit helps refugee families from Iraq, Nepal, Somalia, Ethiopia, Guatemala and Congo express themselves through creative arts including poetry, art, drama and music. “I left feeling enriched by others’ experiences,” says Pellegrino, who also enjoyed meeting some amazing folks from the community. The library has always been a place where you could find information. Now, it’s also a place where people who have small businesses or run nonprofit organizations — or are just thinking about it — can come together to share information and experiences with each other. A few tidbits that Catalyst Café
participants have learned: • Crowdfunding — a new way to raise money from your friends, fans, and community — isn’t just for musicians and game designers. There is a fundraising platform for just about anyone, including businesses and organizations. • Crowdfunding does require a great idea or an engaging story. It also works best when you already have a solid online network of friends or fans. • Many Tucson businesses and nonprofits are rocking how they use social media. • Facebook and Twitter can be used to build awareness of a new business and engage potential customers, especially when the planning, renovation, and progress are shared in real time. • Social media can level the playing field for a small business because authenticity and the human touch are so important in building readership and relationships. Liz Danforth, an artist who’s been an entrepreneur for nearly 40 years, says that she hasn’t seen the environment change as fast as it is these days. “Catalyst Café draws people out of their silos for cross-fertilization of knowledge, technologies and ideas.”
Contact Lisa Waite Bunker, Social Media Librarian for Pima County Public Library, at email@example.com. She facilitates Catalyst Café at the Joel D. Valdez Main Library the second Tuesday of every month.
22 APRIL 5, 2013
INSIDE TUCSON BUSINESS
OPINION OPINION FROM A LATINA CEO
How prepared is American business? One of the single largest marketing opportunities for American businesses is to target the Hispanic market. There are numerous studies, including the 2010 U.S Census, that detail this fast growing dynamic demographic. In Pima County, projections indicate that by 2030 a majority of residents will be Hispanic. During the recent economic downturn, as staffs became leaner and resources tightened, corporate and small business dialogue focused on new revenue generation. At the Tucson Hispanic Chamber, our team quickly realized businesses — regardless of size — needed information and advice on this market opportunity. Firstly, the Hispanic market is diverse and is not monolithic. In Arizona, 85 percent of the Hispanic population is Mexican American. In other parts of the U.S., there are larger percentages of people who are of Cuban or Puerto Rican descent. The Hispanic community is young, compared to the general market. In Pima County, the average age for Hispanics is 27.5 and for non-Hispanics it’s 45.8 according to 2008 Census Bureau numbers. Secondly, reaching the Hispanic market is not simply translating an English-language brochure into Spanish. Building a culture competency within the business is key — from customer service, to the selling
cycle, to the retention of customers. Each step needs to be analyzed to determine business readiness as it relates to the Hispanic market. Look at your LEA MÁRQUEZ employees, especially leadership. Do they reflect the community your business is trying to reach? A national survey of Hispanics included in last year’s Datos: Tucson report found that 66 percent say very few brands genuinely care about the state of their communities, but 79 percent say companies that make sincere efforts to be a part of their communities deserve their loyalty. So how involved is your business in the Hispanic community? Are you aware of the issues that impact Hispanics? Is there a difference in the way issues impact Hispanics versus others? For example, as the national unemployment rate has slowly come down to 7.8 percent, the rate in the Hispanic community remains higher, at about 9.4 percent. Certainly, this may be a function of educational attainment, another area in
which Hispanics lag the general population, but businesses can use interns to help grow awareness within the Hispanic community. (Read more about the Tucson Hispanic Chamber’s internship program on our website). And when conducting any employment interview it’s worthwhile to value diversity and the ability to speak Spanish. As the U.S. economy recovers, a key indicator of growth has been home ownership. Home building and development have been the backbone of Arizona’s economy over several decades. The Datos: Tucson report, research conducted by the Arizona Hispanic Chamber and the Tucson Hispanic Chamber, found that Hispanics will drive future home ownership in Tucson, representing 65 percent of new home owners from now until 2017. Member businesses within the Tucson Hispanic Chamber serve as vendors and service providers to the real estate markets. How prepared are businesses in real estate to reach Hispanic families as consumers? To further the conversation, the Tucson Hispanic Chamber is hosting a Real Estate and the Hispanic Market Forum from 11:30 a.m. to 1:30 p.m. April 18 at Viscount Suites, 4855 E. Broadway. Residential and commercial real estate projections will be presented by experts and the program will
include discussion of the impact on the Hispanic market. The event is open to the public — cost is $35 or $25 for chamber members. Register online at www.tucsonhispanicchamber.org. As business leaders reassess their strategic plans and determine the value of the Hispanic market, it’s important to answer these questions: Where are marketing dollars being spent? Does the leadership of the business reflect the diversity of the community? If not, what changes should be made? What operational changes should be considered to attract Hispanic consumers? A good place to start the research is the 2012 Datos: Tucson report. It can be downloaded for free from the Tucson Hispanic Chamber’s website.
Contact Lea Márquez Peterson, president of the Tucson Hispanic Chamber of Commerce, at firstname.lastname@example.org . The Tucson Hispanic Chamber is the largest Latino business organization in Arizona, with offices in Tucson and Hermosillo, Sonora, and focuses on helping businesses reach the fast-growing Hispanic market. Its website is www.tucsonhispanicchamber.org.
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Would you work to recall the TUSD Board Members and/or the Pima Community College Board Members?
Make the news
Yes, from both boards 60.6% Just from TUSD 18.2% Only from PCC 15.2% No, neither. 6.1% Next week’s poll: Regional leaders have begun to focus on economic partnerships with Mexico. Do you think that Mexico can be a strong trading partner for Southern Arizona?
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APRIL 5, 2013
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24 APRIL 5, 2013
INSIDE TUCSON BUSINESS
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Published on Apr 5, 2013