Inside Tucson Business 06/01/12 by Territorial Newspapers

BOTSWANA BOOKER Tour company specializes in trips to Africa PAGE 12

Your Weekly Business Journal for the Tucson Metro Area

Gordon Bates

WWW.INSIDETUCSONBUSINESS.COM • JUNE 1, 2012 • VOL. 21, NO. 53 • $1

Culinary Destination Tucson on menu for best Mexican food Page 3

Port of Tucson Goes Global Expansion gets cargo to China Page 7

Holiday rush for old Mervyn’s site Contractors on fast track to renovate vacant parcel Page 27

TREO defends trip to San Diego Inside Tucson Business Officials of Tucson Regional Economic Opportunities (TREO) issed a statement Wednesday (May 30) defending and explaining what it called a “Benchmarking/Best Practices” economic development trip May 16-18 during which Tucson City Councilman Paul Cunningham is said to have made inapropriate sexual comments to a city staffer at a bar. In its statement, TREO said the leadership exchange trip was by invitation only and that participants paid $2,000 each, all inclusive. Eight public officials were granted scholarships that

were privately funded. Although TREO didn’t say it in the statement, Cunningham was one of those whose trip was paid by scholarship. At Tuesday’s city council meeting Cunningham said he apologized to several people. He said he had been drinking that night, the first night of the trip, and did not recall exactly what he had said. Mayor Jonathan Rothschild confirmed to the Arizona Daily Star that the incident has been referred to the city attorney’s office, though city officials haven’t confirmed whether an official complaint has been filed.

Since the incident was revealed City Councilwoman Karin Uhlich has suggested Cunningham should consider resigning. Both Cunningham and Uhlich are Democrats, but they have disagreed on some key issues. Noting that it had conducted trips in previous years to Austin, Texas; Portland, Ore.; Albuquerque; and Huntsville, Ala.; the TREO statement said it believed the May 16-18 trip to San Diego showed the Tucson officials ideas on how to successfully building a knowledge-based economy that creates jobs geometrically from start-ups and expansion rather than from recruiting and relocation.

2 JUNE 1, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

JUNE 1, 2012

NEWS

Tucson looks to brand itself: Home of the best Mexican food in U.S. By Patrick McNamara Inside Tucson Business For decades, Tucson has capitalized on abundant sunshine, unique desert landscapes and golf to try to bring visitors to Southern Arizona. Now, a push has been launched to put Tucson on the culinary map as the home of the best Mexican food in the United States. “This is something that’s been here for decades, now it’s time to tell the rest of the world,” said Chris DeSimone, a tourism industry consultant. Working with the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), DeSimone has helped launch a branding campaign staking out the Mexican food claim. Discussing the plan over a plate of fish tacos at La Costa Brava restaurant, 3541 S. 12th Ave., DeSimone said the idea grew out of a bus tour he organized through Gray Line Tours. DeSimone also co-hosts with Joe Higgins a 6-8 a.m. weekday radio talkshow on KVOI 1030-AM and the two collaborate on a biweekly column in Inside Tucson Business. The “Best of the Barrio” tour takes visitors on a journey to several Mexican restaurants where they can explore the unique culinary traditions. On a larger scale, DeSimone would like potential travelers to factor dining options into their plans when coming to Tucson. For example, a group of golfers might choose Tucson over Scottsdale or Palm Springs based on the choices of Mexican restaurants here. That is, if they were aware of the culinary traditions of Southern Arizona. Getting the effort started, the MTCVB has an advertisement section in the May issue of Phoenix Magazine lauding Tucson attractions and proclaims the city as home to the “best 23 square miles of Mexican food

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

El Guerro Canelo

BEST PLACES The Metropolitan Tucson Convention and Visitor Bureau has begun to market Tucson as the home of the best Mexican food in the county. The organization has chosen the following eateries as representatives of Tucson’s food culture. • Alejandro’s Tortilla Factory 1800 E. Fort Lowell Road, Suite 100 • Anita Street Market 849 N. Anita Ave. • Aqui con El Nene Food truck at La Canada Drive and Wet more Road • BK Carne Asada and Hot Dogs 5118 S. 12th Ave. • Cafe Poca Cosa 110 E. Pennington St. • Crossroads 2602 S. Fourth Ave., South Tucson

in the U.S.” The organization plans to expand the campaign into additional markets and incorporate the content onto the visittucson.org and vamostucson.org websites. Talks with the city have begun to place signs around the city notifying motorists of entry into the self-proclaimed 23-square mile zone of the country’s best Mexican food. The move follows on a trend among destination marketing organizations that have been including a region’s distinct food traditions or restaurant offerings when promoting cities. “It’s actually quite huge,” said Erik Wolf, president and CEO of the International Culinary Tourism Association in Portland, Ore. “Food is more important in travel than many people might admit.” Wolf said tourism promotion organizations, like the MTCVB, can play a part in promoting local food culture by not only listing restaurants on their websites, but through instituting an accreditation program. Factors included in the accreditation could be levels of regional sourcing and buy-in among the local community. The program should be open to members and non-members of a local visitors bureau. And it wouldn’t be just for fine dining establishments, Wolf said, noting that the growing food-truck scene in the Portland area has become a popular destination for culinary travelers. “I think many CVBs around the world are warming to the idea of food as a destination,” Wolf said. The popularity of food and travel television networks also has helped to spur

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PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAN GIBSON dgibson@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

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

AZ’s small business jobs outpace national growth The number of jobs offered by small businesses in Arizona grew 0.6 percent in May, which was three times the national average, according to the latest Intuit Small Business Employment Index. The index shows that 40,000 new jobs were created nationwide in May by businesses with fewer than 20 employees. The data comes from the 78,000 small businesses using Intuit Online Payroll. Intuit’s report shows that the growth among small business employment outpaced Arizona’s overall growth in employment, which was 0.19 percent.

False alarm fees now in effect The Tucson Police Department says a 60day grace period has ended and as of today (June 1), it will begin enforcement of a new false alarm ordinance. Citations will be issued for false alarms, based on the alarm user’s registration status. Users who have not registered with the police department are subject to higher false-alarm assessments. The ordinance requires an annual $20 registration fee. Registration can be done online at www.tucsonaz.gov/police and click on “Alarm Information,” although payment must be made in person at one of the following locations: • Westside Police Service Center, 1310 W. Miracle Mile, (520) 791- 4440 • City Hall, 255 W. Alameda St., (520) 791-4583 • County/City Public Works, 201 N. Stone Ave., (520) 791-5550 • Eastside City Hall, 7575 E. Speedway, (520) 791-4652 • Patrick K. Hardesty Midtown MultiService Center, 1100 S. Alvernon Way, (520) 791-5779 • General Services Department Price Service Center, 4004 S. Park Ave. No.1, (520) 791-4226 • Tucson Water, 310 W. Alameda St., (520) 791-2622 Users have the option to “opt out” of registering, but to do so forfeits police response on any unconfirmed burglary alarm and results in a higher false alarm fee should police officers respond.

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

6 8-9 12 14 19-21 23 25

Arts and Culture People in Action Finance Real Estate & Construction Biz Buzz Editorial Classifieds

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4 JUNE 1, 2012

Officials of Rosemont Copper say they are pleased the Arizona Corporation Commission (ACC) voted unamimously to allow transmission lines to supply power to their planned mine in the Santa Rita Mountains southeast of Tucson. “The ACC decision is another huge step forward for Rosemont, we now have approval to bring electricity to operate the mine,” said Kathy Arnold, vice president of environmental and regulatory affairs for Rosemont Copper. The company said it now has received six of the eight major permits needed to proceed with developing the mine. The two remaining permits are an Air Quality Permit and the Clean Water Act Section 404 Permit, both of which the company says it expects this year. Opponents of the mine emphasized the May 23 decision still requires it get the remaining permits. “This decision recognizes the commission’s duty to minimize and mitigate the environmental impacts of the massive copper mine before allowing construction of the power line,” said Gayle Hartmann, president of Save the Scenic Santa Ritas, in a statement.

Arizona gas prices fall but not as fast as some While summertime gas prices are beginning to fall significantly in many parts of the U.S., pump prices in Arizona are continuing to take the slow road down. The average price in Tucson over the past week was $3.60½ per gallon, down about 3 cents per gallon from a week ago, according to AAA Arizona. A year ago, the Tucson average was $3.56 per gallon. The statewide average this week was $3.73 per gallon. States with the lowest average prices this week are in the Midwest and South.

NEWS It’s hot, streetcar is under construction and merchants are desperate for business By Lee Allen Inside Tucson Business It’s probably unfair to call it a “Streetcar Named Desire” — although plenty of people are desirous of what will happen when it becomes operational — but in the meantime construction of the modern streetcar is testing the survival of specialty and small businesses along and near its 3.9-mile route from the University of Arizona through downtown Tucson. Travel Congress Street downtown and the path is defined by chain link corridors. Visit merchants along Fourth Avenue and there’s a similar scenario. Four months appears to be the standard time frame for fencing and barricades to block off vehicular traffic while limiting or re-routing pedestrian mobility. Add those constraints to the fact that it’s summertime when there are fewer people anywhere in the Tucson region and it’s not hard to understand why business owners are worried. The Fourth Avenue Merchants Association promotes its stretch of roadway “a Street of Dreams,” but what the 100 shops along that roadway are currently experiencing has become a disruptive nightmare. The association’s website notes: “Fourth Avenue is a walking district and

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All photos: Gordon Bates

ACC OKs power line to Rosemont mine

INSIDE TUCSON BUSINESS

A skateboarder takes the pedestrian lane to travel west on Congress Street downtown. Due to the closure of Congress Street, some vehicle traffic has moved to the sidewalks.

Final 4 weeks to nominate 2012 Women of Influence The final four-week nominating period for 2012 Women of Influence is approaching. This is the ninth year of the program that seeks out women who are making a difference in the Tucson region, either in their career, the community or both. The nomination form is at www.InsideTucsonBusiness.com — click on the Women of Influence icon — and can be completed submitted online. It’s not necessary to have the form completed entirely but it is important to include enough information so judges can adequately evaluate the nominee. Nominations can be submitted by anyone. The nominating period is open through July 4. Ten honorees will be profiled in a special section in the Oct. 26 issue of Inside Tucson Business and introduced at a breakfast in November.

Vehicle and pedestrian traffic mix on the sidewalk by Sky Bar on Fourth Avenue.

InsideTucsonBusiness.com

JUNE 1, 2012

NEWS This Week’s

Good News Bicycle-friendliness The League of American Bicyclists has ranked Tucson among the nation’s top 20 bicycle-friendly communities for 2012. The city ranked No. 19 overall and No. 4 among cities with populations of 500,000 or more. The No. 1-ranked city overall is Boulder, Colo., and the top-ranked large city is Portland, Ore.

The Tucson

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

Tohono O’odham shakeup

Pedestrians pass Pancho Villa’s on Fourth Avenue and Fifth Street.

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The inversion of an advertisement enticing construction workers to take advantage of a discount is viewed through the window of Brooklyn Pizza Company, as a pair of customers wait for their order.

always has been, (so) a little construction shouldn’t deter our valued customers.” And officials continue to plead with shoppers to hang with the local stores during the upheaval. The sign on the door of Epic Café, 745 N. Fourth Ave. at University Boulevard, reads: “All businesses along the strip will be struggling through the summer, hit hard by the construction. We ask those who care about the future of the small business community to remember us this summer and stop in to help make sure we survive.” It’s a sentiment that is echoed by other businesses in the area. “Although it may be a bump in the road for some retailers, it’s a matter of economic survival for others and we can’t downplay their grief because there may be a few casualties,” says Michael Keith, CEO of the Downtown Tucson Partnership. Hard numbers are difficult to come by because economic viability for many of the businesses is measured storefront by storefront. “You can have one place doing OK and their neighbor next door will be struggling with revenue down 20 to 30 percent,” Keith says. “It’s a lot about product and customer base.” Focusing on the torn-up section of

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A big shake-up in the executive ranks at the Tohono O’odham Gaming Enterprise. Virtually the entire marketing department has changed, among others. Gone too is wellliked CEO Scott Sirois, who had been there since July 2006. No explanations but the word is the shake-up may be borne out of frustration the Pascua Yaqui Nation’s casinos — Casino Del Sol and Casino of the Sun — are winning the public perception battle over the Tohono O’odham’s Desert Diamond casinos. But it comes at a difficult time for the Tohono O’odham who are continuing to fight a legal battle to build a casino just outside Glendale near the Arizona Cardinals’ University of Phoenix Stadium.

La Paloma bad deal? While probably most Tucsonans welcome the fact that new owners took the Westin La Paloma Resort and Spa out of bankruptcy and are embarking on some overdue renovations, it is among 12 big commercial mortgage workouts considered “the poster children” of recent bad deals done by loan servicers. In a report, sarcastically titled “Presenting the Modified Loan All-Star Team,” Deustche Bank commercial real estate analyst Harris Trifon cited the modification of the $209 million loan on La Paloma and a sister resort in Hilton Head, S.C., that cut the interest rate to zero and extended the mortgage by 15 years, about three times the normal. The deal was done in bankruptcy court. LNR Property, the nation’s largest servicer, was in charge of the La Paloma workout and blamed it on the court. According to bankruptcy lawyers with knowledge of the deal, the judge considered the potential alternative could lead to people losing their jobs. Still though, the $600 billion U.S. market for commercial real estate loans now has more than 10 percent of delinquent loans that have been converted into securities the first time the percentage has gone into double digits.

6 JUNE 1, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES Chapter 11 Business reorganization Randall M. Blixt and Sandra E. Blixt, 41856 W. Centennial Drive, Maricopa. (Principal assets: Little Game Hunters Inc. Fort Wayne, Ind.) Principal: Randall M. Blixt and Sandra E. Blixt, joint debtors. Assets: $279,101.00. Liabilities: $771,672.24. Largest creditor(s): Wells Fargo Home Mortgage, Des Moines, Iowa, $397,212.70, and Chase, Wilmington, Del., $78,670.36. Case No. 1211608 ﬁled May 24. Law ﬁrm: Blake D. Gunn, Mesa

FORECLOSURE NOTICES Old El Dorado Stone Works LLC 1001 S. Tyndall Ave. 85719 Tax parcel: 124-16-149A Original Principal: $288,000.00 Beneﬁciary: Zions First National Bank, Salt Lake City Auction time and date: 10 a.m., Aug. 6, 2012 Trustee: Margaret Gillespie, Collins May Potenza Baran & Gillespie, 201 N. Central Ave., 22nd Floor, Phoenix

LIENS Federal tax liens Carson Concrete & Decking Inc., 3475 N. Dodge Blvd. Amount owed: $6,704.78. Ground Effects Landscaping Inc., 1602 S. Burning Tree Ave. Amount owed: $15,296.36. Tune Tech Inc., 2911 S. Lisa Place. Amount owed: $1,068.00. GRS Landscape Architects Inc., 11047 N. Cloud View Place, Oro Valley. Amount owed: $1,016.41. Amorosa Assisted Living and Corpuz Holdings LLC, 1659 N. Capitol Ave., San Jose, Calif. Amount owed: $4,847.95. Meadows Enterprises Inc., 1368 W. Roger Road. Amounts owed: $22,438.84 and $68,150.43. Fausto’s Independent Distributor and Agapito Fausto, 225 W. Calle Antonia. Amount owed: $3,314.08. Human Resource Stafﬁng Inc., 1310 N. Dusty Hollow Court. Amount owed: $17,031.91. Better Bodies Wellness LLC and Jeramy James Price, 7285 E. Tanque Verde Road. Amounts owed: $780.00 and $114,897.98. ACH Pension consultants Inc., 4729 E. Sunrise Drive PMB 333. Amount owed: $7,134.38. Environmental Strategies Inc., 423 S. Olsen Ave. Amount owed: $162,429.35. Care Giver Connection of Arizona LLC and John C. Rambow and Dana A. Rambow, 698 E. Wetmore Road, Suite 210. Amount owed: $13,569.13. M&S Green Valley Enterprises LLC and James Estes, PO Box 1403, Sahuarita 85629. Amount owed: $13,948.52. E.L. Baca Construction Inc., 1401 E. Orange Grove Road. Amount owed: $489,020.24. J.R. Tuttle Co., PO Box 41553, 85717. Amount owed: $10,689.90. WPNT-Tucson LLC, 8838 E. Broadway. Amount owed: $31,347.21. Gwenneth’s Shoe Repair and Gwenneth T. Sheahan, 6072 N. Oracle Road. Amount owed: $8,653.51. Formula I Ltd., 596 E. 23rd St. Amount owed: $4,596.15. All Season Desert Landscaping and OND Contractors Services LLC, 2977 E. Manzanita Ave. Amount owed: $23,001/89. J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $65,022.12.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Emerald Glass Inc., 4500 E. Sunrise Drive, Apt. 16. Amount owed: $41,102.41.

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When U.S. Transportation Secretary Congress Street at downtown’s east end, Ray LaHood came to Tucson in April Keith says, “Businesses that depend for the construction kickoff of what is on the lunch trade or downtown office now officially named Sun Link, Rothworkers have largely been unaffected, schild acted as a master of ceremonies so we have to separate out restaurateurs for the event, saying, “The streetcar will versus retailers. Small retailers on Con- be a transformative project for the city, gress and some side streets, like Scott Av- driving economic development from enue and Sixth Avenue, are the ones tak- the university through downtown to ing major hits downtown. They weren’t the west side.” Downtown Partnership’s huge money makers to begin with and Keith agrees, “The streetcar corridor is need support, both in programs and the single biggest game changer Tucson has ever seen.” customers, to make it through safely.” The expectation is that once Sun Link Refuting a contention that some collateral damage must occur for the begins operating it will connect retail, greater good, Britton Dornquast, man- restaurants, clubs and theaters with the ager of Regional Transportation Author- UA area stimulating economic developity’s Main Street Program, says, “I don’t ment and redevelopment. “As soon as a portion of track is inknow if any business needs to fall by the stalled, we’ll begin wayside. Busitesting vehicles per nesses come and federal mandate,” go irrespective says Gutierrez who of projects such vows that passenas this. It’s going gers will be riding to be a total of before the end of 16 months, so no 2013. Each of the matter where you eight train cars will start, it’s going to have the capacity effect everybody, to carry 180 pasperiod. The key sengers along the is to minimize di17-stop route. rect impact from But that will be construction upthen…and this is heavals like this.” now…with downThe first shovtown merchants els of the streetwaiting anxiously car construction for enough cusproject went into tomer traffic to the ground April keep their doors 9 and it’s due to open in the weeks be finished in late ahead. “We 2013. should see traffic “With a project back to normal on of this size, there the Congress Street will be an impact, corridor by Sepbut our goal was tember for most of to minimize that it and by October disruption,” says for all of it,” says Jesse Gutierrez, Keith. “Once those streetcar conBIZ FACTS construction fences struction project start coming down, manager. “An amKeep up with the latest on people are going to bitious endeavor the construction of Sun Link, start flooding back of this magnitude the modern streetcar, online in.” generally runs at www.TucsonStreetcar.com Similar optimis550 to 600 days, tic feelings can be but we’ve cut found among many our timeline to 475 days. As an analytically-based per- of the nearly 1,500 businesses found eifectionist, I admit we could have done ther on or adjacent to the streetcar line some things differently, but probably all the way from Speedway Boulevard to not much better because of inherent the Westside Mercado. Ultimately, acconstraints involved. This is about as cording to RTA literature on the streetcar, “Jobs will be created, congestion will be good as it gets.” Although the view from his office on reduced, property values will increase, the 10th floor of City Hall is far from the and business visibility, foot traffic and smell of diesel fuel and clouds of dust market reach will all be extended.” “If the promise of the streetcar holds at street level, Tucson Mayor Jonathan Rothschild looks out his window and re- true,” says Keith, “merchants along the mains convinced that short-term incon- route that have experienced lean times venience will be worth the long-term during its construction will make up this temporary shortfall later on.” benefits.

Refuting a contention that some collateral damage must occur for the greater good, Britton Dornquast, manager of Regional Transportation Authority’s Main Street Program, says, “I don’t know if any business needs to fall by the wayside. Businesses come and go irrespective of projects such as this. It’s going to be a total of 16 months, so no matter where you start, it’s going to effect everybody, period. The key is to minimize direct impact from construction upheavals.”

Doing what they can to help heal the hurt of construction By Lee Allen Inside Tucson Business Despite the earthmoving equipment and barricades in downtown Tucson and along Fourth Avenue, both areas are open for business and offering special incentives to try to lure shoppers during the construction of the Sun Link modern streetcar project. “This isn’t something that snuck up on the merchants involved — it was four years in the coming,” says Britton Dornquast, who runs the Regional Transportation Authority’s Main Street, which assists business owners deal with access issues during road construction projects. The Main Street program offers services valued at $6,000 to $8,000 at no charge to businesses. But businesses along the construction route aren’t exactly stepping up to take advantage of what’s available. “We’ve had 6,000 meetings with businesses along this project and have provided consulting services to about 150 merchants,” Dornquast said. “No one has a magic bullet, but our approach from day one was been that people who take advantage of these services could minimize any negative impact. The message these merchants need to keep alive is, ‘We’re open for business, shoppers have access, parking is not an issue, and it’s business-as-usual aside from the construction.’” Merchants along Fourth Avenue are hammering on the fact that it’s still possible to get from point A to point B, though in some cases it may involve a slight detour. The Fourth Avenue Merchants Association has come up with a “Construction Customer Shopping Card” offering discounts for customers willing to overlook the current minor inconveniences. The Downtown Tucson Partnership continues to stay on talking points by emphasizing creation of a series of unique summer events designed to bring people downtown and the fact that because vehicular traffic volume has dropped, it’s easier to walk around downtown. Rates to park in downtown parking garages have also been reduced. “There are 15,000 parking spaces downtown between meters, surface, and garage parking,” says Michael Keith, director of the Downtown Tucson Partnership. He adds, “We’ve positioned downtown for a pretty exciting charge once we come out of this.” The Fourth Avenue Merchants Association is straightforward in its appeal, “We need loyal customers now more than ever.”

InsideTucsonBusiness.com

JUNE 1, 2012

NEWS

Port of Tucson goes global, to ship directly to China By December, the Port of Tucson’s $19 million rail system expansion should be complete. That will enable the freight handler to ship intermodal containers for clients directly to destinations around the world. At a much cheaper price, too. When cargo is handled less and moved by railway instead of roadway, the results are lower-cost competitive rates. And from a logistics perspective, that may motivate more clients to pick Tucson over Long Beach. California’s Port of Long Beach has become a hellish place for freight management. About 35 percent of all U.S. imports and exports transported by ship go through the ports of Long Beach/Los Angeles. The vast volume causes severe congestion problems. In addition to loading delays, the port area is plagued with air pollution. Dieselburning cargo ships, semi-trucks and locomotives idle while waiting to be loaded and unloaded. That chronic congestion is an opportunity for the Port of Tucson, located at Century Park Research Center, just north of Interstate 10 off South Kolb Road. “It’s always been our focus to provide services to become a true inland port, to put us at the head of international shipping. The international component was the key, to transload here instead of Long Beach,” said Mike Levin, executive vice president of marketing for the Port of Tucson. “The expansion is very important to our local economy. It makes the whole region more competitive.” “It is a huge attraction for businesses that utilize container-shipping services, to help them expand their opportunities here. They benefit from lower freight rates. Others will relocate here,” he added. Founded in 2004 by Alan Levin, Mike’s father, the Port of Tucson provides intermodal and rail services. The 264-acre site is alongside the Union Pacific railroad line, a very strategic logistics location just 70 miles from the border with Mexico. The port has its own locomotives and long side rails to transload cargo on intermodal rail containers or on/off truck-loading docks. The port has a service contract with Union Pacific to provide intermodal container handling. This provides crossborder cargo options for companies to ship and receive goods and raw materials via container. The expansion features 20,000 feet of new rail to handle unit trains of 60 to 100 rail cars. In 1,500-foot lengths, the rails were purchased from Union Pacific and currently are being installed. “Under the current business model, cargo is unloaded at Long Beach and trucked here. The new model will ship intermodal containers directly right on the trains to and

from Long Beach to Tucson,” Levin said. “We have a commitment from Union Pacific to do this international service, along with pricing direct to Shanghai, China.” “There are companies in the area that want to ship directly to China,” he added. Although Levin would not reveal their rates, he provided an example of the potential savings. The cost to truck a commodity from Nogales to Long Beach is about $1,900. For “way less” than $1,900, the Port of Tucson will be able to ship directly to Shanghai, he said. The actual container is the port’s cargo, not what’s inside. Although Levin may not know the specific contents of a shipment, most of the goods are bulk materials such as grains, iron ores, steel, lumber, machinery and parts, and other agricultural and industrial cargo that can be containerized. Until the expansion is on line, Levin is pursuing more business. The expansion “allows us to reach a new scale of operations for international service.” The added capacity should open up new opportunities to take advantage of rail lines that reach Long Beach; Kansas City, El Paso, and Houston to the east; and Mexico to the south, “For years, there’s been a lot of studies and talk about inland ports. With the ability to do international containers, that makes the Port of Tucson a true inland port for the region,” Levin said. “It’s no longer talk, it’s now a reality.”

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 295-4254. TOP RIGHT: Tucson City Councilwoman Regina Romero during a site tour at the Port of Tucson’s $19 million expansion with Mike Levin. RIGHT: Alan Levin and Mike Levin. BELOW: The port has its own locomotives and long side rails, one of which is two miles long.

George Howard photos

By Roger Yohem Inside Tucson Business

8 JUNE 1, 2012

INSIDE TUCSON BUSINESS

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10 JUNE 1, 2012

INSIDE TUCSON BUSINESS

NEWS CONTINUED ON FROM PAGE 3

La Costa Brava

• El Charro Cafe 311 N. Court Ave. • El Dorado 1949 S. Fourth Ave., South Tucson • El Gorrion 3459 S. 12th Ave. • El Guero Canelo 5201 S. 12th Ave. • El Mezon del Cobre 2960 N. First Ave. • El Merendero 5443 S. 12th Ave. • El Minuto 345 S. Main Ave. • El Rio Bakery 901 N. Grande Ave. • El Torero 231 E. 26th St. • Guadalajara Grill 1220 E. Prince Road • Guillermo’s Double L 1830 S. Fourth Ave., South Tucson • La Costa Brava-Rodriguez Seafood Company 3541 S. 12th Ave. • La Estrella Bakery 5266 S. 12th Ave. • Las Cuatas Tortilla Factory 1501 W. St. Mary’s Road • Little Cafe Poca Cosa 151 N. Stone Ave. • Los Jarritos 4832 S. 12th Ave. • Los Portales 2615 S. Sixth Ave,, South Tucson • Martin’s Comida Chingona 557 N. Fourth Ave. • Micha’s 2908 S. Fourth Ave., South Tucson • Miguel’s 5900 N. Oracle Road • Mi Nidito 1813 S. Fourth Ave., South Tucson • Oasis Fruit Cones 1002 W. St. Mary’s Road • Perfecto’s 5404 S. 12th Ave. • Rigo’s 5851 N. Oracle Road • Rosa’s Mexican Food 1750 E. Fort Lowell Road, Suite 164 • Tania’s 33 614 N. Grande Ave. • Taqueria Juanitos 708 W. Grant Road • Taqueria Pico de Gallo 2618 S. Sixth Ave., South Tucson • Teresa’s Mosaic Cafe 2455 N. Silverbell Road

Downtown Tucson Partnership produced this map showing multiple ways to reach downtown amid ongoing streetcar construction.

BEST MEXICAN CONTINUED ON FROM PAGE 3 the interest in regional cuisines across the country. Several Tucson-area restaurants have been featured in national TV shows such as “Man v. Food,” “Food Wars” and “Bizarre Foods with Andrew Zimmern.” As for the claim that Tucson has the best

Mexican food north of the border, DeSimone says he’s ready to put it to test. Phoenix, Albuquerque, Los Angeles or San Antonio, DeSimone said Tucson could hold its own against any of them. “I’ve gone to other Southwest cities and our collection of Mexican restaurants kicked

the crap out of them,” he said. “I can’t find any other community in the Southwest that even comes close.”

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

InsideTucsonBusiness.com

JUNE 1, 2012

SALES SALES JUDO

Five ways to mismanage your revenue producers Twice a month since March 16, we’ve been dealing with ways to ARM — attract, retain and motivate — your business’ revenue producers, this time I offer up five ways to dis-ARM — or mismanage — your teams of producers. It’s tough to come up with a top five because there are so many, but here are some real winners: 1. Promote your top producers to managers. Top producers are usually those who prospect, qualify and close better than their peers or, in their opinions, any other mortal. They are task oriented self starters who focus like lasers on generating new accounts. It’s only natural to want to “reward” them by promoting them and to produce as many clones of them as possible. Sadly neither usually works out because top producers expect their own team members to be just like themselves: tough, smart and hardworking with a “take no prisoners” attitude. Management abilities to “nurture” and to have “empathy” are words that are not in their vocabularies. Further, managers are supposed to be the buffers between their producers and organizations. Lots of issues and irritants surface each month: expense reports challenged by accounting, new clients fail to be approved by credit or underwriting departments, existing clients are cut off by accounts receivable and the business miscalculates or takes away commissions. Then there are the so called leads from others in the organization that don’t go anywhere and are considered a waste of time to the producer while the lead giver thinks it’s nothing more than a lazy producer who can’t get the job done. Issues and irritants like these are usual and customary in all organizations, and it takes the cool heads of skilled managers to keep them from escalating into open

warfare. Often, aggressive top producers who are newly promoted to the roles of managers lack both the aptitude and training required to manage these SAM WILLIAMS situations. The net effect of this can often be complete turnover of a sales department within a year and a “double whammy” drop in revenues. Not only is the producer’s own production cut in half, but their team’s production is reduced due to so many vacancies. As if this weren’t bad enough, offending managers become personae non grata within their own organizations and are then often fired or quit. 2. Don’t profile your candidates. Your best managers are often not your best producers. Managers are patient, calm, diplomatic and non-confrontational. They recognize producers have different personalities and respond to challenges in different ways. Managers understand they must apply different methods to each producer to achieve optimal performance. Most of the standard profiling instruments (Briggs-Meyers, DISC, Brinkman), when used with your best managers, will identify the attributes that make them so good. When you then select managerial candidates with these attributes, you will usually find those with the best aptitudes. Good managers will also profile their producers in order to place the right people into prospecting, account service and technical sales roles. 3. Don’t train your managers. Aggressive producers can and do learn to control counterproductive behaviors and often become first-rate managers, if they

receive the right training and guidance. As it turns out, producers with high levels of dominance are character actors at heart and can assume almost any role required at least for an hour or so, which is long enough to deal with each producer or situation in the most effective manner. However, they’ll need to be shown the right model behaviors so they can reproduce them, and that’s where training comes in. There are several good texts on sales management, and a classic is “Dalrymple’s Sales Management” by William L. Cron and Thomas E. DeCarlo published by John Wiley & Sons and now in ts 10th edition. The University of Arizona’s Eller College of Management also offers a semester long course, Management of Sales Operations. One of my favorite books is “First Break All the Rules: What the World’s Greatest Managers Do Differently” by Marcus Buckingham. While it doesn’t address the management of producers, per se, most of its findings still are pertinent. 4. Load up your producers with reporting requirements. Most producers resist having to feed their sales force automation and customer relationship management systems because they would rather be out prospecting for and closing on new business or servicing existing clients. But even they understand the need for pipeline management and solid sales forecasts. With a mix of coaxing and coercion, they’ll “render unto Caesar what is Caesar’s due” putting in about four hours a week, or 45 minutes each day into such administrative activities. But if the total time commitment is greater than that, producers’ productivity will decline. In some extreme cases, most notably in pharmaceutical sales, two hours or more a day are spent on these tasks. I know of pharma reps who are preparing to leave their employer because these burdensome and unproductive administra-

tive requirements cut so deeply into their revenue generating time. They also feel the sales culture of their organization has been subordinated to the needs of the “pencilnecks” and “finance geeks.” 5. Accept ‘cram downs’ from senior management that affect budgets, compensation plans and territories. Many of us have been given aspirational rather than achievable sales targets on the grounds that “a man’s reach should exceed his grasp, or what’s a heaven for?” And adjusting compensation plans and territories can be just as perilous. Competent managers must evaluate the economic and emotional impacts of any of these types of changes on their producers and, if they anticipate serious fallout, push back against ill advised “cram downs.” This takes courage, skill and deftness. During good economies where the job market for producers is strong, failure to push back effectively can result in the loss of entire sales teams in the space of six months. When the job market is weak, most producers will “suck it up” and stay longer, but they’ll be on the lookout for another job and their hearts will no longer be in the fight, which will show in their productivity. These are my top five sales mismanagement follies, but I’d like to hear what you have to add. Send your favorites, and I’ll include them in my next column, minus your identities, of course.

Contact Sam Williams, president of the business-to-business sales consultancy firm New View Group, at swilliams@newviewgroup.net or (520) 390-0568. Williams is also an adjunct lecturer of sales at the University of Arizona Eller School of Management. Sales Judo appears the first and third weeks of each month in Inside Tucson Business.

12 JUNE 1, 2012

INSIDE TUCSON BUSINESS

PROFILE

Tour operator books trips half-way around the world, in South Africa By Christy Krueger Inside Tucson Business

Left: Cooling off — as some elephants do the same — at Savute Safari Lodge in Botswana. Below: Destination South Africa’s Terry von Guilleaume and his family stop during a morning game drive at Madikwe Safari Lodge.

Destination South Africa photos

South Africa is 10,000 miles from Tucson and starting a company that relies on business partnerships in a country almost halfway around the world may seem like a risky proposition, but Terry von Guilleaume, founder and owner of Destination Southern Africa, thrives on risk. And he’s discovered that taking a fearless attitude about financial opportunities can pay off. Von Guilleaume was born in South Africa to a South African father and American mother, which allowed him the privilege of dual citizenship. After college he traveled to the U.S., and while working in Jackson Hole, Wyo., he met his future wife, a Tucsonan. Although he longed to return to his home, von Guilleaume came to Tucson and decided to make the best of it. “I told myself, if I keep saying how wonderful South Africa is, why don’t I sell it?” His plan was to become a tour operator specializing in travel to his homeland. While researching possibilities, the Sept. 11, 2001, attacks on the World Trade Center and Pentagon changed how Americans viewed travel to foreign countries. Folks told von Guilleaume there was no room for new travel businesses post-9/11. “I saw it as an opportunity to start because there’s less competition,” said von Guilleaume, who launched Destination Southern Africa out of his house in October 2001. Three years later he moved to an office on Grant Road and Interstate 10 and then relocated again in 2008 to his current location at River Road and Campbell Avenue. “That was when everything changed,” he said of the third move. Annual revenue for the company, which was $400,000 in 2008, was about to grow drastically. But first von

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Destination Southern Africa/ South African Airways Vacations 1050 E. River Road, Suite 100 www.myafricavacation.com

(520) 882-3600 Guilleaume had major hurdles to overcome. As the 2010 World Cup was to be held in South Africa, von Guilleaume applied to Fédération Internationale de Football Association (FIFA) to be an official tour operator. Three companies out of the 250 that

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applied in the U.S. were selected. Destination South Africa was one of them. It was a grueling, drawn-out process. “First we had to send FIFA a $50,000 non-refundable deposit. Then we had to prove we had enough hotel rooms in South Africa, and for every ticket sold to an American, we had to have five nights of accommodations.” He applied for loans to cover the room deposits, but both his banks denied the requests. So he visited the community-friendly Bank of Tucson and was approved for a $250,000 loan. The next item thrown at him from FIFA was the requirement to have a partner airline. He was already working with South African Airways, so he put down more money to reserve seats. “We were half-a-million dollars in debt before we ever started,” von Guilleaume said. The man obviously has a high tolerance for risk. He feels his passion for South Africa and a positive attitude helped him through this period. “My outlook was it’s not the end of the world. The worst case, we’d have to pack up

Terry von Guilleaume at Madikwe Safari Lodge, which is four hours by road outside of Johanensburg, South Africa. Safaris are the No. 1 reason Americans travel to Southern Africa.

and live in the jungle. I had no fear cloud hanging over my head.” In the end, the risk paid off. “We purchased $8 million in hotel rooms. We sold until the day before the finals and made a significant profit.” Part of Destination South Africa’s success in selling the World Cup was its diversity of packages, offering travelers a choice of nearly 40 different hotels. “I worked 18-to-20-hour days for one-anda-half years. I went from being blond to gray,” von Guilleaume said. But he feels it was worthwhile – both financially and for accomplishing what had seemed to be a daunting task. “The U.S. sent more people to the World Cup than any other country,” he reported. Following the World Cup, he signed a four-year contract with South African Airways’ vacation program. “We, as the tour company, provide land service in Africa and we sell the airline. Flights depart from Washington, D.C., and JFK.” When not booking massive events like the World Cup, von Guilleaume typically plans custom South African trips for couples, families and occasionally groups. Five to seven times a year he flies over to meet with partners and perform site inspections, and every two years he takes his wife and kids. Favorite activities on those trips, von Guilleaume said, are remote safari experiences and the beach. “We go on safari with a private ranger and do things that normal tourists can’t because of liability. My kids are spoiled being exposed to safari. They’re huge nature and outdoor fans. And it’s nice to have a beach holiday. Everywhere, the people are great.”

JUNE 1, 2012

At home and afar, von Guilleaume is a philanthropist, helping a number of needy organizations. His foundation, Destination South Africa Pays it Forward, supports education, gardening, poor villages and orphanages in South Africa. Over the years, he’s donated dozens of trips and safaris to nonprofits such as Therapeutic Riding of Tucson, Tucson Village Farm and Rotary. Von Guilleaume would like to take another step in merging his love for Tucson and his home country - one that could eventually help our area’s tourism. He envisions the development of a sister-city program between Tucson and a South African city that would encourage more South Africans to travel here. After all, he pointed out, DSA also stands for Destination Southern Arizona.

14 JUNE 1, 2012

INSIDE TUCSON BUSINESS

CALENDAR SPECIAL EVENTS

REGULAR MEETINGS

Rosemont Project Update & Logistics Issues S. AZ Logistics Education Org. (SALEO) Wednesday (June 20) 5:30 to 8:00 p.m. Viscount Suite Hotel, 4855 E. Broadway RSVP: al@saleo.org or 977-3626 Cost: $30 ($25 members & 1st-timers, $10 students)

Southern Arizona Logistics Education Organization (SALEO) Third Wednesday Location and times vary Information: al@saleo, (520) 977-3626 or www.saleo.org Cost: $25 members and 1sttimers; $30 nonmembers Superior Business Networking First and third Tuesday

11:30 a.m. to 1 p.m. Info: (520) 631-7398, vthompson@az-health.com The Annuity Doctor â&#x20AC;&#x201D; Curt Zacharias Every Tuesday - 3:30 p.m. Bookmans, 6230 E. Speedway, Community Room Information: Curt Zacharias (520) 990-0009 Cost: Free Tucson Association of Executives Every Wednesday

free snacks, cash bar

6:30 to 8 a.m. Tucson Country Club 2950 Camino Principal RSVP: (520) 321-0879, taeofďŹ ce@aol.com Tucson Business Connection First Wednesday 5 to 7:30 p.m. Pearl Nightclub 445 W. Wetmore Road Information: (520) 219-0266, WArnold@trayersinsurance.com or www.tbcnetworking.com RSVP: Not required Cost: Free to attend,

Tucson Christian Business Connections First and third Thursdays 7 a.m. 3516 E. Grant Road Information: Robert E. Hinske, (520) 795-7195 or (520) 990-5374 Tucson Computer Society Third Monday 6 p.m. (pre-session) 7 p.m. (meeting) Pima County Medical Society Auditorium

5199 E. Farness Drive Information: (520) 6254419 or www.aztcs.org Cost: Free *No meeting in September Tucson Downtown Sertoma Club First and third Wednesday 11:30 am to 1 p.m. Viscount Suites 4855 E. Broadway Information: www. tucsonsertoma.org RSVP: tdsertoma@yahoo.com

70 years

still counting.

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InsideTucsonBusiness.com

JUNE 1, 2012

United Way Circle of Excellence

CAMPAIGN

RECOGNITION

LUNCHEON May 15, 2012

16 JUNE 1, 2012

INSIDE TUCSON BUSINESS

Michael J. Harris In honor of a great man, a great leader, and a great volunteer, the United Way of Tucson and Southern Arizona Board of Directors has renamed the “Spirit of Tucson Award” to the “Michael J. Harris Spirit of Tucson Award.” This award is the campaign’s top honor and goes to the company who highly represents corporate involvement and community leadership. This award recognizes not only United Way involvement, but also broader community support. Mike was our 2010-2011 Campaign Chair who passed away last March. Mike was a United Way volunteer for nearly 40 years and his passing left a big hole in the heart of this organization and in all who knew him. Mike lived, slept and breathed the Spirit of Tucson. His passion and dedication inspired us all, and we believe it imperative that his vision and mission live on at United Way of Tucson and Southern Arizona.

Michael J. Harris Spirit of Tucson Award Nominees:

More than 600 companies have partnered with United Way and we thank each of them for their dedication to advancing the common good throughout Southern Arizona. The following companies and individuals received special honors for their outstanding commitment to our community:

Winner: Citi Left to Right: from Citi: Paul Brozovsky, Martin Carrillo, Jeffrey Ceresnie, Michael Dorer, Jason Ott, and United Way Board Chair Neal Eckel

InsideTucsonBusiness.com

JUNE 1, 2012

United Way Circle of Excellence Award Winners The Partnership Award

Best Small Company

Champion of Caring Award

Best Medium Company

Best Employee Campaign Coordinators Gabriela Cervantes

AGM Container Controls, Inc.

Brenda Olivas

Alliance Bank

Debe Campos-Fleenor

Campos-Fleenor Allstate Financial Services

Scott Meintel

Caterpillar

Guillermo Figueroa

CenturyLink

Jason Ott

Citi

Michael Dorer

Citi

Jesus Felix

City of Tucson

Amber Howell

CODAC

Kelly Maslyn

Comcast

Cori Collins

CSL Plasma

Amanda Blankenbaker

GEICO

Charlie Dodd

Jim Click Automotive Team

Bonnie Massino

Jim Click Automotive Team

Linda Lopez

La Frontera of Arizona

Candy Parkhurst

Lewis & Roca, LLP Lawyers

Christy Yebra

Pima Community College

Shelley Rose

Pima County

Jared Brooks

QuikTrip

Jason Accord

QuikTrip

Karen Christensen & The Rays of Hope Committee

Raytheon

Susan Johnson

Rick Engineering Company

United Way Committee

Southwest Gas

Sonny Lopez

Target

Lisa Uhler

Target.com

Christina Geare

The University of Arizona Health Network

Donna Morton

TMC

Pat Araiza

Trico

Mel Dulaney

Tucson Electric Power Company

Sharon Foltz

Tucson Electric Power Company

Dani Tarry

TUSD

Rob Auman

Westin La Paloma Resort & Spa

Joanne Trinidad

Westin La Paloma Resort & Spa

Building a Better Community Award

Best Large Company

All American Award Howard Stewart

Young Leaders Society Company of the Year LIVE UNITED Award

2011-12 Volunteer Campaign Cabinet

Judy Rich, Tucson Medical Center – Campaign Chair Howard Stewart, AGM Container Controls, Inc.- Vice Chair Hank Atha, Pima County Brian Barker, BarkerMorrissey Contracting John Bremond, CP Graphics Randy Brookshire, Hammel, Beal & Lauer Debe Campos-Fleenor, Campos-Fleenor Allstate Financial Services Vickie Doyle, Tucson Visitors Bureau Patty Feeney, Chase Ken Haley, Dillard’s Mike Hammond, PICOR 3PUKH /H[ÄLSK (-3 *06 7(3- *OHPY Jim Holmberg, Bank of America (retired) Gregg Johnson, University of Phoenix Brian Kish, University of Arizona Foundation Matt Muehlebach, Hecker & Muehlebach PLLC Tom Murphy, Community Volunteer Doug Myers, Hilton & Myers Advertising Cindy Parseghian, Ara Parseghian Medical Research Foundation Patricia Raskob, Raskob Kambourian Financial Advisors, Ltd

Best of the Best Award Amanda Blankenbaker GEICO

18 JUNE 1, 2012

INSIDE TUCSON BUSINESS

Special Thanks to Our Sponsors

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JUNE 1, 2012

BRIEFS GET ON THE LIST

Next up: Retirement communities, Active adult retirement apartments, Assisted living facilities Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are: â&#x20AC;˘ June 8: Internet service providers, Website designers, Computer hardware retailers, Software companies â&#x20AC;˘ June 15: Retirement communities, Active adult retirement apartments, Assisted living facilities â&#x20AC;˘ June 22: Office machine retailers, Office furniture retailers, Office supply retailers

â&#x20AC;˘ June 29: Grocery stores, Drug stores â&#x20AC;˘ July 6: Biotech firms, Optics companies If your business fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

RETAIL

Sunflower stores to become Sprouts in July The Tucson regionâ&#x20AC;&#x2122;s four Sunflower Farmers Markets will begin to be converted

to Sprouts Farmers Market the second week of July after the two chains on Tuesday completed their merger. Sprouts already has one store in the region. The merger, which had been announced in March, combines the two chains into one, based in Phoenix, that company officials say will hit $2 billion in revenue this year. Together they will operate 144 stores in Arizona, California, Colorado, Nevada, New Mexico, Okahoma and Texas.

almost every department of the company. His previous position was director of commissary operations. He was responsible for the purchasing, manufacturing and distribution of all products for store operations. He also oversaw the catering, wholesale and special event departments. Tucson-based eegeeâ&#x20AC;&#x2122;s opened in 1971.

New president of eegeeâ&#x20AC;&#x2122;s appointed

Pep Boys, operator of auto parts stores and repair shops, has decided against a deal to by bought out by a Los Angeles-based private equity firm and instead will remain public. The deal was valued at close to $1 billion. As a result the Gores Group is paying Pep Boys a $50 million termination fee.

Longtime eegeeâ&#x20AC;&#x2122;s employee Robert Jensen has been promoted to president of the company. Jensen began his employment at eegeeâ&#x20AC;&#x2122;s as a cashier in 1976 and has since worked in

Pep Boys nixes selling to private equity firm

continued on Page 20

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INSIDE TUCSON BUSINESS

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BRIEFS continued from Page 19 Pep Boys has 22 stores in Arizona, including four in Tucson and one in Marana.

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An upcoming trade mission to Mexico has a defined mission: to help various businesses in Sonora fulfill their needs for aerospace-grade metals, plastic resins, metal plating, heat treating and packaging. From June 18-21, business owners and representatives are invited to join the Arizona District Export Council, Metropolitan Tucson Convention and Visitors Bureau’s Mexico Marketing Department and the U.S. Commercial Service/Arizona on a trade mission to the Sonoran industrial centers of Hermosillo and Guaymas. The trip is an opportunity to meet the region’s business leaders and explore Sonora’s vibrant industries of aerospace, automotive, electronics and healthcare technology, according to Eric Nielson, an Arizona director with the U.S. Department of Commerce International Trade Administration. Hermosillo’s economy includes a Ford Motor Co. assembly plant and the port city of Guaymas is the site of Maquilas Tetakawi, Sonora’s largest industrial employer with

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over 11,000 employees. The mission’s organizers are working with several groups in Sonora to fill not only the above-mentioned needs, but also to find various wire harness assembly components. The $700 registration fee does not include transportation to Mexico, hotels or meals. Some participants may be eligible for travel grant assistance. Registration is online at www.regonline.com/sonora2012 or by contacting Nielsen at eric.nielsen@ trade.gov or (520) 670-5808.

LEGAL

S.C. man arrested for threats at TIA Federal authorities at Tucson International Airport arrested a South Carolina man on charges that he made threats involving an explosive while aboard an aircraft. Ivan Bugakov, 24, of Jacksonville, S.C., was arrested on Monday (May 28) and charged with false information and threats involving aircraft. A federal complaint said that Bugakov was on a U.S. Airways flight that was scheduled to depart Tucson when he became loud, unruly and belligerent. When he allegedly refused to follow flight crew orders the crew decided to taxi the plane back to the gate where Bugakov was removed. While exiting the plane, Bugakov allegedly

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JUNE 1, 2012

BRIEFS told the flight crew and fellow passengers that there was a bomb onboard. When confronted by airport police, Bugakov allegedly said that he had a bomb in his carry-on luggage. The passengers were required to disembark from the plane. Luggage and passengers were then re-screened. Bomb detection dogs were brought in to search for explosive devices, but none were found. A conviction for false information and threats involving aircraft carries a maximum penalty of five years in prison, a $250,000 fine or both.

POLITICS

Steel workers pressure Grijalva Although the proposed Rosemont Mine in the Santa Rita Mountains south of Tucson doesnâ&#x20AC;&#x2122;t fall within the boundaries of U.S. Rep. Raul Grijalvaâ&#x20AC;&#x2122;s new congressional district, the United Steelworkers of America is pressuring him to lend the project his support. United Steelworkers Local 937 staged a protest at the Democratic congressmanâ&#x20AC;&#x2122;s re-election campaign headquarters, letting Grijalva know that the organization supports the controversial mine plan. Grijalva has long been a friend of labor organizations, with a lifetime rating of 97 percent from one of the countryâ&#x20AC;&#x2122;s largest and most influential unions the AFL-CIO.

the Oro Valley Country Club, 300 W. Greenock Drive, Oro Valley. The scholarship fund in named after E.S. â&#x20AC;&#x153;Steveâ&#x20AC;? Engle, an Oro Valley founding father who served as mayor from 1978 to 1990. Until his death in 1990, Engle gave scholarships to deserving students. Following his death, the Greater Oro Valley Chamber of Commerce started a scholarship program in Engleâ&#x20AC;&#x2122;s memory. Funds to support the awards are raised in part through the chamberâ&#x20AC;&#x2122;s annual fundraising golf tournament, to be held June 8 at the Hilton El Conquistador Country Club, 10555 N. La Canada Drive, Oro Valley. Interested golfers can call the office at (520) 297-2191, or email president/CEO Dave Perry at dave@orovalleychamber.com to sign up.

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HUMAN RESOURCES

Arizona EEOC complaints up 31% over last 2 years Complaints filed against employers in Arizona by the U.S. Equal Employment Opportunity Commission are up 31 percent over the past two years. According to the agency, there were 2,854 complaints filed in the state in fiscal year 2011, which ended Oct. 31, up from 2,486 complaints for fiscal 2010 and 2,178 complaints for fiscal 2009. The state accounted for about 2.9 percent of all charges filed, the EEOC said in its report. Of the workplace discrimination charges filed for 2011, 43.9 percent were about retaliation, 30.3 percent involved sex discrimination and 21.5 percent were about race discrimination.

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Oro Valley Chamber to give 3 scholarships The Greater Oro Valley Chamber of Commerce plans to award three area students with $2,000 scholarships. Interim University of Arizona president Dr. Eugene Sander was the scheduled guest speaker for the awards breakfast on Thursday (May 31). The breakfast takes place at 6:45 a.m. at

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22 JUNE 1, 2012

INSIDE TUCSON BUSINESS

GOOD BUSINESS ON GUARD

JOBS Act creates new tool for entrepreneurs: crowdfunding The entrepreneur holds a sacred place in the American psyche. In the sprawling context of world history it wasn’t long ago that entrepreneurs built the United States from a wild colonial outpost of the British Crown into the largest economy the world has ever seen. Even today, we as a society, tend to sanctify our favorite entrepreneurs — the recent passing of Apple founder Steve Jobs comes immediately to mind. Entrepreneurialism has been a central value to the millions who have emigrated to the U.S. over the years, and it remains an ideal to millions of Americans currently growing into adults. According to the Kaufman Institute, a think-tank dedicated to the advancement of entrepreneurship, at any given time 10 million American adults are in the process of starting upwards of 6 million businesses. Of course, as anyone who has ever started a business knows, getting it off the ground is incredibly hard work. Would-be entrepreneurs who can’t raise needed capital will likely never see it come to fruition, no matter how innovative the idea. With this problem in mind, President Obama signed the Jumpstart Our Business Startups (JOBS) Act in April. The legislation, which passed Congress with strong bipartisan support, essentially makes legal a new sort of fundraising for businesses called “crowdfunding.” What is crowdfunding? It works like this: entrepreneurs can pitch their start-up ideas to large networks of small-investors and potentially raise significant amounts of seed capital for their businesses in exchange for equity. Unlike venture capitalists, who typically give hundreds of thousands, or even millions of dollars to companies they fund, investors in crowdfunding networks make small investments. But, since the investments in crowdfuning come from a large network of investors, businesses can raise significant sums of capital. Of course, this new method of funding startups poses new risks to both crowdfunding investors and entrepreneurs who utilize crowdfunding networks. Writing in Wake Forest University’s Journal of Business and Intellectual Property Law, Joseph Norman outlines several benefits and risks of the new legislation that both entrepreneurs and investors should be aware of. • Benefit: Avoiding costly state-bystate registration The crowdfunding provision pre-empts state blue sky laws with regards to state registration. As a result, crowdfunding issuers can avoid thousands of dollars in registration fees and a significant amount of reporting requirements. The issuer does not get off scot-free though since the Act requires the issuer to make the basic

disclosures available to the states. • Benefit: Issuers can raise funds for niche projects Because the venture capital industry is KIM STATES competitive and selective of funding opportunities, many projects go unfunded. Some of these projects may go unfunded because their intended market is not developed enough to support a large-scale investment. Crowdfunding will help these “niche” projects since chances are that someone else probably sees the utility in the niche project. Now, those like-minded persons can band together to fund the project and still avoid costly registration. • Benefit: Funding without ceding control In a typical venture capital relationship, the entrepreneur cedes significant control of the project to the venture capital or angel investor. Crowdfunding allows the entrepreneur to avoid having to give up control since the funds come from a dispersed group of investors who are purchasing small stakes in the company rather than a single investor who will want some control for safety. • Risk: Crowdfunding law is unsettled The JOBS Act is a significant liberalization of securities law; as such, the outer boundaries of crowdfunding practice have yet to be established. This uncertainty presents significant risk for issuers. • Risk: Greater number of investors means greater exposure to lawsuits Because the JOBS Act grants a cause of action to investors by which they can rescind their investment with interest, each investor presents an individual chance of antifraud liability. This should be a top concern to issuers. While the Jumpstart Our Business Startups Act will be a boon to many entrepreneurs and small investors, all parties involved should be well aware of various the liability issues and other risks that crowdfunding and its large networks of small investors create. America has a long distinguished legacy of entrepreneurship, and crowdfunding is sure to help businesses and investors who fully understand its risks and benefits to add to that legacy.

Contact Kim States, CEO of the Better Business Bureau of Southern Arizona, at kstates@tuc son.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.

TUCSON BBB ACTIVITY REPORT  MAY 2012 Top 10 most complained about industries

New car auto dealers

Complaints

Settled

86%

Martial arts supplies and equipment

33%

Beauty salons

67%

Air conditioning contractors and systems

100%

Auto repair and services

100%

Car washes and polishers

100%

General contractors

50%

Painting contractors

50%

Major appliance dealers

100%

Plumbing contractors

100%

Top 10 most inquired about industries

Inquiries

Air conditioning contractors and systems

1,672

Roofing contractors

1,307

Auto repair and service

1,140

Used car auto dealers

942

Travel clubs

934

Plumbing contractors

901

General contractors

809

Pest control services

691

Landscape contractors

684

Movers

600

10.

Source: BBB of Southern Arizona

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Summer has just started but Pac-12 Network eyes football season launch This month, schedules will be released for the new Pac-12 TV network, which is due to launch in 76 days, on Aug. 15. It is without a doubt, the largest TV venture undertaken by an NCAA conference and it has raised plenty of questions, as even University of Arizona Director of Athletics Greg Byrne acknowledged in a Wildcat Wednesday newsletter recently. There are more questions than answers at this point, but here are a few with answers: • What is the Pac-12 Network? It’s actually not one but seven networks. We’ll have an Arizona network focused on the UA and Arizona State University but there also will be a Southern California network (for the University of Southern California and University of California Los Angeles), Northern California (University of California and Stanford), Mountain network (Colorado and Utah), Oregon (Oregon and Oregon State), Washington (Washington and Washington State) and a national network for the rest of the country. • Where will I find it? In Tucson if you subscribe to Cox or Comcast cable, you’ll be able to get it. If you subscribe to either of the two satellite companies, DirecTV or Dish Network, neither has a deal yet to carry the networks. Both sides say they’re negotiating. Pricing details still have yet to be worked out, according to people at the two cable companies. Pac-12 Network officials suggest that at least initially, their deals should allow cable companies within the Pac-12 to carry their respective networks on lower-priced tiers, at least initially. Additionally, the Pac-12 is aggressively looking to offer its programming on tablets and other mobile devices. • Should I be worried if I’m a satellite subscriber? Maybe. Both DirecTV and Dish Network have a reputation for going down to the

Courtesy UofA Athletic Department

By David Hatfield Inside Tucson Business

Arizona Wildcats linebacker Jake Fisher

wire on some of these kinds of negotiations. The unknown, of course, is whether there will be any ramifications from upset subscribers to not having access to a new, untried network. Also, if history is an indication, the satellite companies tend to separate sports networks on to their own tiers and charge extra for them. • What will it show? For starters in football season, it will carry 35 Pac-12 football games that aren’t otherwise going to be shown by ESPN/ABC or Fox but don’t read that to mean it will all be second-rate match-ups. In fact, for seven of the 13 weeks of the football season, the Pac-12 networks will either have first or second choice picks of games.

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It also means that all viewers will be able to see all Pac-12 football games live. The centerpiece of this month’s programming announcement will be the composite schedule outlining which football games will be shown by which networks. For basketball season, the Pac-12 networks will have at least 120 men’s games, which averages out to just under nine games a week. The network is also planning national exposure for 50 women’s basketball games. Beyond that, the Pac-12 Arizona network will carry between 45 and 50 events each from UA and ASU in other sports, including Olympic sports including volleyball, swimming and track and field. Not all of the UA and ASU events carried on the local regional will get exposure on the

national or other Pac-12 networks. • Will the coverage be Phoenix-based and ASU-centered? It shouldn’t be. The headquarters and main studios for the Pac-12 Network are in San Francisco and will be operated by a division of the Pac-12 called Pac-12 Enterprises. • Who are the Pac-12 Network announcers? They’re still working out those deals. About half the staff of 120 has been hired. Names that have been announced so far include Hall of Fame football player Ronnie Lott, Olympic gold medal swimmer Summer Sanders and former coach Rick Neuheisel. • Pac-12 teams haven’t been getting the national exposure of other conferences by ESPN/ABC and Fox, does this mean they’ll be giving us even less coverage? Considering ESPN and Fox have agreed to pay a combined $3 billion over the next 12 years, they shouldn’t. • How much will the UA get from TV? Broken out evenly, the TV deals should bring each school $20.8 million a year.

Faster, faster By July 1, Comcast will roll out even faster broadband Internet speeds of 50 Mbps and 105 Mbps. That’s at least double the speed Comcast currently offers in the Tucson region, which top out at 25 Mbps. At 105 Mbps, customers should be able to download and watch a high-definition movie in about five minutes, but also do other things faster, such as playing online interactive games, sending and receiving email attachments, shopping, and, of course, surfing the Web. Upload speeds are 15 amps and 20 amps. Costs for the faster speeds will range from $99.95 per month as part of a bundle and up to $199.95 per month as a stand alone.

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

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A M O C . S INES S U B N SO C U T E D Are you interested in business INSI O T O news everyday? SO ARE WE! G GN UP:

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24 JUNE 1, 2012

INSIDE TUCSON BUSINESS

REMEMBERING TUCSON

Career with Hughes Aircraft brought Al Mueller to Tucson He was destined to be an engineer, it was in his genes. In 1926, Albert H. J. “Al” Mueller was born in Van Nuys in California’s San Fernando Valley. He remembers attending parochial schools as a youngster. “There were two classes in every room with 30 to 40 students in each school room. The nuns watched over us especially when we were paying attention to what was being said in the other class.” He attended Jesuit-run Loyola High School in downtown Los Angeles. In 1943, with World War II being fought, Mueller wanted to get a student deferment so he left high school at the beginning of his senior year to enroll at Loyola University, but that only lasted one semester and he decided he wanted to go to California Institute of Technology. Without the deferment, Mueller took advantage of the newly initiated V-12 Navy College Training Program. It came about due to growing concern from Navy brass they could be facing a shortage of commissioned officers as a result of the draft age being lowered to 18 in 1942. The V-12 program allowed men to attend colleges and serve in the reserves prior to being commissioned as officers. That allowed Mueller to attend California Institute of Technology, or Caltech as it’s often called. After the 1945 atomic bombings of Hiroshima and Nagasaki in Japan ended the war, plans were made to phase out Caltech’s V-12 program by June the following year. With less than three years under his belt in the program, Mueller and others at Caltech were transferred to a Naval Reserve Officer Training Corps (ROTC) program at the University of Southern California, which required a commitment to serve two years following graduation. Mueller, who was still interested in getting a degree from Caltech didn’t like USC so he quit after one semester. On the plus side, in his short time at USC he met Ardita Williams when he went to the campus Newman Center. On the negative side, quitting ROTC meant he was sent to boot camp at the Great Lakes Naval Training Center near Chicago. From their he went for tours of duty on ships in the Pacific. In April 1946, one of Mueller’s classmates told him he had talked to their ship’s executive officer who agreed to get the two of them an early discharge by June 1 so they could get back into Caltech. With the financial benefits of the GI Bill, Mueller graduated in 1947 with a degree in electrical engineering. After working for General Electric for a year, Mueller returned to Caltech to get a masters degree. “During that time, I decided that I wasn’t cut out to be a research and design engineer.” He applied to Stanford University’s business graduate school and was accepted. After graduating with an MBA in 1951 Mueller and his new bride — he and Ardita

Williams had been married in December — made a honeymoon out of a six-week summer student tour of Europe. Then in September 1951, MARY LEVY PEACHIN Mueller went to work for Hughes Aircraft Company in Culver City, Calif. His first job was in department administration and later he worked in systems engineering and program management. His responsibilities included seeking contracts and managing funds, interfacing with government entities to buy equipment from the company and responding to government requests for proposals. The company, which had been developing the AIM-4 Falcon air-to-air missile as a defense against potential threats from the Soviet Union, had decided it wanted to relocate so production would take place further inland, which was considered safer. In 1952, Hughes Aircraft began production of the Falcon, the U.S. Air Force’s first operational guided air-to-air missile, at its new plant south of Tucson International Airport. In the 1960s, Mueller was named manager of some of Hughes’ missile programs. One client was the Swedish government and most of Mueller’s team moved to Sweden, but he commuted. After E.J. Meyer, assistant manager for manufacturing at Hughes Tucson plant, died in the summer of 1966 Mueller was named to replace him. Then in 1969, Mueller was transferred to work in program management at Hughes Ground Systems Group in Fullerton, Calif. “We were teamed with Bath Ironworks in Maine and worked for one year on a proposal to design and build 30 destroyers complete with weapon systems. We lost the bid,” he said. After that Mueller was named manager of the NASA Systems Department in Hughes Space Systems Group, also in California. In 1972 when Lou Reasor retired as manager of Hughes Aircraft’s Tucson plant, Mueller was brought back as group vice president and manager of the manufacturing division of Hughes Aircraft’s Missile Systems Division. He held that position until 1984. During this time, Hughes’ missile manufacturing was diversifying away from only manufacturing air-to-air guided missiles and had developed the TOW (Tube-launched, Optically-tracked, Wire) anti-tank missile for the Army and an air-to-ground missile dropped from A-10s called the Maverick (and used in the first Gulf War) and an air-to-air missled called the Phoenix for the Navy. “In 1984, we got into a dispute with the

Al and Jeannie Mueller

government over quality and cost factors. Following that debacle, I was transferred back to Fullerton. I didn’t stop living in Tucson, I just commuted and remained as group vice president of the Hughes Ground Systems group. After a year, in 1985, I took early retirement. Coincidentally, at the same time, Hughes Aircraft was put up for sale,” Mueller recalled. On June 5, 1985, General Motors won a secretive five-month, sealed-bid auction against Boeing and another team. The purchase price was estimated at $5.2 billion. With GM’s financial backing Hughes was later able to purchase the Navy surface to air Standard Missile business and the Tomahawk cruise missile business from General Dynamics. In 1997, General Motors chose Raytheon’s $9.6 billion dollar offer over a rival proposal from Northrop Grumman. Meanwhile in his personal life, Mueller’s wife Ardita was diagnosed with lymphoma in 1981 and died a year later. Tom Brown, one of the founders of Burr-Brown — which was sold and became part of Texas Instruments in 2000 — introduced Mueller to Jeannie Horner in 1983 and they were married a year later. When Mueller retired they decided to have some fun and moved to Vienna where they had intended to stay for a year. Before

they had realized it, they had been there three years before returning to Tucson. Their blended families include eight children and 16 grandchildren. At age 85, Mueller still likes to play tennis. He says he belongs to a small “octogenarian group” at Tucson Country Club that includes Clark Duncan, Jack Lewis, Ed King, Bill Allin and, until “he hit 90,” lawyer Bill Lindamood. “We’ve had some trouble keeping the 80 year olds going, so we have included some younger ones in our group,” Mueller admits. The Muellers stay active in community organizations, involved in both Angel Charity for Children and Wright Flight, a program that involves 600 children who agree to goals including taking a course on the history of aviation. Despite his career with Hughes Aircraft he never met his reclusive boss. He got plenty of calls and answered lots of questions when Howard Hughes died in 1976 but that was it.

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

InsideTucsonBusiness.com

JUNE 1, 2012

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Summer is here, and so are the restaurant specials

Cruise 8 art galleries in two hours Saturday night

Through June 18, the dinner menu features red cooked pork with noodles, soft shell crabs with chile scallion ginger oil and thick wheat noodles with beef. There are also lunch and appetizers specials. Subsequent stops on the summer passport tour are Athens, Greece, June 19-July 9; Valencia, Spain, July 10-30; Rio De Janiero, Brazil, July 31-Aug. 20; and Bangkok, Thailand, Aug. 21-Sept. 16. • Downtown Kitchen + Cocktails, 135 S. Sixth Ave. — MICHAEL LURIA http://downtownkitchen.com — (520) 623-7700

It’s June. It’s hot. And the summertime specials are on at Tucson restaurants.

Cinco de Summer

El Charro Cafés have brought back their Cinco de Summer menu. This summer the menu includes three types of chimichangas, because Tucson and El Charro lay claim to being the home of the deep-fried concoction. The claim garnered renewed attention of foods born in the U.S. in the May 27 issue of Parade magazine. It explained how a stuffed burrito fell into a deep fryer prompting proprietor Monica Flin to yell out something that’s been changed to chimichanga, more or less the Spanish equivalent to “thingamajig.” Anyway, the summer $5 specials are for chimichangas filled with either bean and green chile, chicken, or green chile and pork. The special menu also features a large Sonoran hot dog or a Charro burger topped with grilled onions and menonita cheese. Tableside-made guacamole and a dessert special of flan are also $5. Drink specials for $5 include sangria and strawberry-mint mojito. The specials run through Sept. 30. • El Charro Café — www.elcharrocafe. com — locations: 311 N. Court Ave. (520) 622-1922; 6310 E. Broadway in El Mercado (520) 745-1922; 7725 N. Oracle Road in Oracle Crossings, Oro Valley, (520) 229-1922; 6910 E. Sunrise Drive in Ventana Village (520) 514-1922; and 15920 S. Rancho Sahuarita, Sahuarita, (520) 325-1922

Different each day

Summer tour Downtown

Acacia is mixing it up and keeping it fresh this summer offering a different special each day of the week (Tuesdays through Sundays, because the restaurant is closed on Mondays for the summer). There’s “Taco Tuesday,” all you can eat tacos, either “Cadillac” (chile, garlic and lime marinated beef sirloin) or mahi, with a beer served for $10 (bar only); “Wacky Wednesday” with different specials each week; “Thirsty Thursday” with $2 off all drinks and half-priced bottles of selected wines; “Paella for two” on Fridays with two glasses of sangria for $30, a “Saturday fish fry” for $12 per person and an early bird special of a three-course prix fixe menu for $16.95 served from 4-6 p.m. The Tuesday special is good in the bar only but all the others are also available in the dining room. • Acacia Real Food + Cocktails, 3001 E. Skyline Drive in Gallery Row — www.acaciatucson.com — (520) 232-0101

Chef Janos Wilder’s Downtown Kitchen + Cocktails goes globetrotting this summer with menus featuring cuisines from five cuisine destinations, with Shanghai being the first stop.

Contact Michael Luria at mjluria@ gmail.com. Meals & Entertainment appears weekly in Inside Tucson Business.

The 12th annual Summer Art Cruise takes Parton thrown in. And on Aug. 19, three days and 35 years after place from 6-8 p.m. Saturday (June 2) at eight the death of Elvis Presley, Robert Shaw and the different art galleries in the downtown area. Lonely Street Band will perform Put on by the Central Tucson their tribute in Remember the Gallery Association, the event King. offers the opportunity to see lots Tickets for each of the of different works, meet some concerts in the Z Mansion artists and experience some of courtyard is $23 or you can buy Tucson’s most exciting art spaces. tickets to all three concerts for Participating galleries are $60. They’re also offering a Davis Dominguez, 154 E. Sixth dinner-and-a-show combination St.; the Drawing Studio, 33 S. for $45 each night or $120 for all Sixth Ave.; Raices Taller, 218 E. three concert nights. Dinner is Sixth St.; Conrad Wilde, 439 N. HERB STRATFORD served at 6 p.m. and the concerts Sixth Ave.; Philabaum Gallery, start at 7:30 p.m. 711 S. Sixth Ave.; Contreras If you’re interested in the Gallery, 110 E. Sixth St.; Obsiddinner option, the menu entré June 5 is ian Gallery, 410 N. Toole Ave.; and Sacred cheddarburger meatloaf, July 13 it’s shredded Machine, 245 E. Congress St. barbecue chicken, and Aug. 19 it’s cod. Many of the shows will remain up for at The concerts are being put on by Lonely least part of the summer. Street Productions, buy tickets online at www.showclix.com/events/lonelystreet/ or “Flights of Fancy” is the name of an art call toll-free 1-(888)-718-4253. exhibit opening today at Tucson Botanical Gardens, 2150 N. Alvernon Way. The show features 70 different birdhouses made by 30 This weekend the highly anticipated artists. The exhibit runs through September, but fairy tale flick “Snow White and the an artist reception is set for 5-8 p.m. June 21, Huntsman” arrives at the multiplex. With which is also third Thursday of the month and a an all-star cast including Kristen Stewart, night when the gardens features live music and Chris Hemsworth and Charlize Theron, this a chance to enjoy it in the cool evening hours. special effects-laden, amped up re-visioning of a classic tale looks like a lot of fun. Also on screens this weekend is the indie A series of three summer concerts at the Z film “The Sound of My Voice,” a riveting Mansion, 288 N. Church Ave., kicks off Tuesday documentary about a filmmaker’s attempt (June 5) with a Tribute to Crosby, Stills, Nash to infiltrate a mysterious cult that was one and Young by the band Five Way Street. of my favorites at the 2010 Sundance Film Coming up July 13, Classic Country Festival. It’s playing at the Loft Cinema, Jukebox features Robert Shaw and Kaci 3233 E. Speedway. Bays, who has performed in Branson, Mo., Contact Herb Stratford at herb@ fronting a six-piece band performing country songs from the 1920s through the ArtsandCultureGuy.com. Stratford teaches early 1990s from Hank Williams to George Arts Management at the University of Arizona. Strait with a little Loretta Lynn and Dolly He appears weekly in Inside Tucson Business.

More art

Film

Music

PEOPLE IN ACTION PROMOTIONS Mutual of Omaha Bank has promoted Kevin Halloran to state president for Arizona. In his new role, Halloran is responsible for leading the strategic growth and management of Mutual of Omaha Bank’s statewide operations in Arizona, including 10 full-service community bank locations throughout metropolitan Phoenix and Tucson. Halloran has nearly 30

years of banking experience and has served as senior vice president and senior commercial bank manager for Mutual of Omaha Bank in Arizona since 2008. Halloran earned his bachelor’s degree in finance from Indiana University, and is a graduate of the University of Oklahoma Banking School and the Executive Leadership Coaching Program.

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print. KEVIN HALLARAN

ELECTIONS Kim Macdonald of Farhang & Medcoff, PLLC,

MICHAEL TRUEBA

has been elected secretary of ALA Tucson Old Pueblo Chapter. Her term is for one year.

Jeanine Greene of Bogutz & Gordon PC, has been elected treasurer of ALA Tucson Old Pueblo

Chapter. Her term is for one year. Sally Miller of DeConcini, McDonald,

Yetwin & Lacy, P.C., has been elected vice president of the ALA Tucson Old Pueblo Chapter. Her term is for one year. APPOINTMENTS Michael Trueba of Bank of Tucson has been appointed by Gov. Jan Brewer to the Arizona Board of Appraisal. Trueba has 36 years of banking experience and holds a board position on the

Southern Arizona CCIM Chapter AWARDS Modular Mining Systems, Inc. has announced that company co-founder and chairman James White, Ph.D., P.E., is the recipient of Komatsu Ltd.’s Individual Presidential Award for 2012. White’s vision, leadership, and intrinsic understanding of the needs of the modern mining industry, were key factors in his being selected.

26 JUNE 1, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE

401(k) rollover? An annuity that captures gains, not losses We have our 401(k)s in the market — stocks, bonds, mutual funds — for one of three reasons: 1. We love the market. 2. We are not given any other options. 3. We don’t know a better way to go. The market provides opportunities for gains but also for big losses, as we learned in 2008. For safety, we can use certificates of deposits or government bonds but in those your money is positioned either for opportunity or safety, but not both on the same dollar at the same time. There is a way to have safety and opportunity on the same dollar at the same time. Filling the gap between the stock market and a bank is the fixed indexed annuity (FIA).

Capturing the market ‘up’ When the market rises, the FIA delivers interest. When the market declines, instead of losing money, it delivers zero percent interest. In this case “zero” is a “hero” because you’re not losing money as would have if invested in stocks or mutual funds. A study by the Wharton Financial Institutions Center at the University of Pennsylvania found that FIAs credited an average of 8 percent since their inception more than 14 years ago. FIAs typically do not allow for 100 percent of the gain, but the average investor doesn’t often get all the gain anyway. Dalbar, a Boston-based market research firm, found that an average equity fund investment from 1990 to 2009 earned 3.17 percent, or a little over one-third of the 8.2 percent gain the Standard & Poor 500 averaged over the same time frame. Since 1995, many FIAs have credited higher interest.

Liquidity FIAs are not 100 percent liquid, the investment period can range from 5-16 years and they carry surrender charges. Consequently, an FIA is not a place to park money that might be needed for emergencies or for short-term savings. However, FIAs are designed for retirement savings. Most companies allow up to 10 percent free withdrawals per year after the first year and there are some FIAs that allow for 100 percent liquidity from day one. Most brokers recommend you not remove any more than 4 percent per year so as not to run out of money.

Bonuses and income for life One of the most popular features of an FIA is the lifetime income rider, which has a SUSAN L. MOORE VAULT fee of less than 1 percent (the only fee associated with most FIAs). The rider provides a guaranteed annual rate of growth (currently up to 7 percent) as well as guaranteed income for life. For example, you can rollover your 401(k) into an FIA, have a 6 to 12 percent bonus added to your premium and grow it at 7 percent per year and turn it into a lifetime income stream at the age of your choice. FIAs are not variable annuities, which is a securities product that exposes you to market risk and has fees such as mortality and expense fees, administrative fees, fund fees and rider fees. These fees can add up to more than 4 percent. Additionally, some brokers charge management fees on variable annuities. Individual Retirement Accounts (IRAs), by law, can only be owned by one person. If a 401(k) is your choice for your retirement funds and you follow your broker’s advice not to withdraw more than 4 percent annually to live on, you still have no way of knowing if the account will grow or decline due to market volatility. If you rollover a 401(k) into an FIA IRA, you may take your income on a joint basis so even if a spouse dies, the survivor will continue to receive income for the rest of his or her life. Even if you totally deplete the balance in your annuity, your income continues for life. The withdrawals are based upon a percentage of value but you will know, up front, exactly how much you will be able to draw for the rest of your and your spouse’s lives. A fixed indexed annuity may not be the right thing for you but I encourage you to explore your options so you can make informed decisions. Speak to a licensed insurance agent specializing in retirement planning to help you make the right decision for you and your spouse.

Contact Susan L. Moore Vault, president of Moore Financial Strategies, at susan@ moorefs.com or (520) 296-4464. She also hosts “Safe Money Strategies” from 6-6:30 a.m. Saturdays on KNST 97.1-FM/790-AM.

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

Company Name

Symbol

May 30 May 23 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.05 0.01 13.21 37.03

0.05 0.01 13.02 36.60

0.00 0.00 0.19 0.43

0.04 0.01 8.35 32.96

0.52 0.10 15.94 39.25

8.58 0.46 1.62 7.20 52.56 5.63 78.83 19.20 55.88 3.86 16.25 26.00 28.95 22.38 26.92 14.06 85.81 39.25 45.33 11.75 68.41 57.63 16.62 32.41 23.09 49.71 56.20 194.53 28.73 56.20 4.14 32.96 29.87 7.23 48.82 22.33 1.13 26.83 26.99 38.77 56.99 38.30 38.28 29.83 42.85 58.84 27.00 9.19 50.40 39.17 19.17 33.77 52.34 7.06 8.88 41.72 30.17 57.79 14.70 28.95 34.50 24.17 109.86 32.16 12.70 30.76 65.44 30.93 31.70 8.52 18.74

8.61 0.47 1.55 7.17 54.80 6.14 79.75 18.57 56.10 2.87 16.65 27.15 28.79 21.75 26.67 13.51 83.31 38.78 44.79 10.74 68.80 57.78 16.87 32.73 23.09 48.74 57.62 196.12 29.04 56.47 4.39 34.26 30.50 7.58 48.93 22.16 1.13 28.41 26.19 39.22 57.59 37.05 38.11 29.88 43.52 58.64 27.26 9.30 50.26 40.15 18.84 34.10 56.83 7.25 8.36 41.58 29.32 56.78 14.56 28.14 34.36 22.31 112.49 32.51 11.00 31.09 64.58 31.29 31.74 8.43 19.12

-0.03 -0.01 0.07 0.03 -2.24 -0.51 -0.92 0.63 -0.22 0.99 -0.40 -1.15 0.16 0.63 0.25 0.55 2.50 0.47 0.54 1.01 -0.39 -0.15 -0.25 -0.32 0.00 0.97 -1.42 -1.59 -0.31 -0.27 -0.25 -1.30 -0.63 -0.35 -0.11 0.17 0.00 -1.58 0.80 -0.45 -0.60 1.25 0.17 -0.05 -0.67 0.20 -0.26 -0.11 0.14 -0.98 0.33 -0.33 -4.49 -0.19 0.52 0.14 0.85 1.01 0.14 0.81 0.14 1.86 -2.63 -0.35 1.70 -0.33 0.86 -0.36 -0.04 0.09 -0.38

8.31 0.20 1.48 4.92 51.83 5.62 65.35 17.53 43.77 3.30 12.30 21.40 19.19 14.61 22.80 8.49 70.22 31.16 31.30 6.41 38.99 43.64 8.03 28.85 16.92 28.13 41.22 157.13 27.68 39.87 2.69 27.85 25.73 5.02 42.14 21.14 0.49 12.14 18.07 32.90 38.64 22.66 25.49 13.68 33.20 49.20 23.44 3.29 38.35 36.50 15.93 30.98 28.89 7.12 7.15 32.12 20.96 45.28 14.04 24.34 27.62 15.51 77.73 30.93 3.96 20.10 48.31 30.34 22.58 4.44 13.18

16.67 6.37 5.55 11.74 65.79 12.13 83.72 32.85 59.59 7.25 26.61 43.06 30.88 28.84 40.00 14.23 92.10 43.30 46.22 11.99 72.46 70.15 17.91 56.78 30.49 52.88 62.00 210.69 35.79 62.33 5.72 46.49 37.70 13.12 57.39 25.85 1.73 30.12 32.29 42.64 62.83 42.17 40.45 31.20 48.53 70.61 43.18 10.82 54.69 46.40 24.77 40.58 85.90 15.54 11.92 43.64 32.79 58.95 22.39 35.16 39.24 25.84 117.40 58.29 12.85 32.98 65.95 45.34 34.59 9.20 24.71

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

InsideTucsonBusiness.com

JUNE 1, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Renovation of old Mervyn’s site on fast-track for holidays By Roger Yohem Inside Tucson Business

Admission is $7. Details are online at www.AzBizCon.com/ .

Although it’s only June, the holiday rush is on at the former Mervyn’s department store, 5545 E. Broadway. “The push is on, we are on a fast track. Some tenants want to open later this year in time for holiday shopping,” said Tommy Roof, vice president of W.E. O’Neil Construction Company. “We started May 23 and crews worked Saturday and Memorial Day.” Four retailers, anchored by Hobby Lobby, will move onto the 7.4-acre site at the northeast corner of East Broadway and Craycroft Road. The 81,000 square-foot store has been vacant since the Mervyn’s chain was liquidated and closed in late 2008. A Stein Mart store also will be a major tenant. Also on site, demolition of a vacant tire store was on schedule to be finished today (June 1). It will be replaced with a 14,500 square foot retail pad for tenants including Mattress Firm and Vitamin Shoppe. O’Neil Construction, 710 S. Campbell Ave., is the general contractor for property owner Beneson Capital Partners, New York. Inside, Roof said crews are working on environmental abatement. That should be done by mid-June. Meanwhile outside, workers are busy “scraping up the old pavement and removing light post pillars,” Roof said. Once the building’s interior has been cleaned, renovation crews will move in and the pace of construction will increase. At that time, Roof said 50 to 60 workers will be on-site daily. For the entire project, O’Neil will use 30 subcontractors, most of them local companies. Overall, that will employ 150 to 175 workers.

Sales and leases

All 130 exhibit spaces have been sold for next week’s AzBizCon business-to-business trade show at Casino del Sol, 5655 W. Valencia Road. The full name of the event Jan. 8 and 9 is the AzBizCom Business Technology & Construction Expo and it’s sponsored by the Alliance of Construction Trades and the Tuc-

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

TUCSON REAL ESTATE

5/21/2012

5/14/2012

$133,500 4,178 325 421 252

$152,000 4,274 352 430 257

Source: Long Realty Research Center

Roger Yohem photos

AzBizCon trade show

On May 23, redevelopment of the vacant Mervyn’s parcel began, focusing for now on ripping out the entire parking lot (top) and razing an old tire store that has been vacant for 20 years (below).

son Metro Chamber. It will run from 10 a.m.-7 p.m. both days. “We’ll have a little bit of everything for business and property owners,” said Jim Kuliesh, president of the Alliance of Construction Trades. The event features exhibits and seminars

in three categories: residential and commercial property, construction industry and business technology. Exhibitors include specialty trade contractors, material suppliers, heavy equipment and rental companies, computers, software, office machines and business consultants.

WEEKLY MORTGAGE RATES Program 30 YEAR 15 YEAR 3/1 ARM

Current

Last Week

5/29/2012

One 12 Month 12 Month Year Ago High Low

3.75% 4.00%APR 3.75% 4.00%APR 4.95% 3.13% 3.25%APR 3.13% 3.375% APR 4.22% 2.88% 3.25%APR 2.88% 3.25% APR

4.95% 4.22%

3.75% 3.13%

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, AZ 85733. (520) 324-0000. MB #0905432. Rates are subject to change without notice based upon market conditions.

• Stone & Kelso LLC purchased 36,513 square feet at 2619-2651 N. Stone Ave. for $689,000 from Ervin and Beverly Martens, represented by Robert Glaser, Paul Hooker and Allan Mendelsberg, Picor Commercial Real Estate Services. The buyer was represented by Frances Ballou-Horner, Centra Realty. • Jacobs Field Services leased 8,823 square feet at 333 E. Wetmore Road from Brown and Caldwell. The transaction was handled by Stephen Cohen, Russell Hall, and Tom Nieman, Picor Commercial Real Estate Services; Eric Olofson, Cushman Wakefield; and Dean Panfili, Cassidy Turley. • OCG LLC, doing business as Chuy’s Mesquite Broiler, leased a 5,500-square-foot freestanding restaurant at 7585 S. Houghton Road from Harco Properties LLC, represented by Pete Villaescusa and Jesse Peron, CBRE. David Dutson, CBRE, represented the tenant. • Adora Bridal leased a 2,804 square feet space at Crossroads Festival on the northeast corner of Grant and Swan roads, from Larsen Baker, self-represented by Andy Seleznov. The tenant was represented by Rob Gillette, Gillette Commercial Inc. • Gymboree Retail Stores leased 2,500 square feet at Tucson Spectrum, on the southwest corner of Interstate 19 and West Irvington Road, from Barclay Creswin Tucson Spectrum, represented by Jim Gardner, the Barclay Group. Nancy McClure, CBRE, represented the tenant. • Eclipse Clinical Research leased 2,468 square feet 1704 W. Anklam Drive from Torralba Properties LLC, represented by Tom Knox, Picor. The tenant was represented by Bruce Suppes, CBRE. • HEF LLC leased 1,818 square feet at 2452 N. Campbell Ave. from Aysel Leyla Busche, represented by Jean Barclay of Oxford Realty Advisors. • E Systems Management LLC leased 1,800 square feet at 9630 E. 22nd St. from Allied Trading & Transacting Corporation. The tenant was represented by Nancy McClure of CBRE. • Help-U-Sell Real Estate leased 1,800 square feet at 8245 N Silverbell Road, Suite 167, from CJR at Continental Ranch LLC. The landlord was represented by David Carroll of Romano Real Estate. • Eko Market Place leased 1,800 square feet at 1835 S. Alvernon, Suite 204 and 205 from Presson Midpoint LLC, represented by Rob Glaser and Paul Hooker with Picor.

Email news items for this column to ryohem@azbiz.com. Inside Real Estate & Construction appears weekly.

28 JUNE 1, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Mirror, mirror, are we to blame? You don’t suppose that maybe we’re the reason Arizona has perceptions problems? A lot of us have been trying to point the finger at others, but after reading some of the national accounts of Arizona Secretary of State Ken Bennett’s quest last month to verify President Obama’s birth in Hawaii, I’m worried that maybe we ought to be pointing to the reflection in the mirror. Hawaii verified that it has Obama’s DAVID HATFIELD birth certificate and Bennett issued a statement saying, “I consider the matter closed.” But good grief, was there anybody without time to waste on their hands still trying prove otherwise? Oh yes, there’s Maricopa County Sheriff Joe Arpaio, who is the target of a U.S. Department of Justice lawsuit over discriminatory treatment of Hispanics in his jurisdiction. What does it say when the birther argument is the only thing Arpaio could come up with to counter the legal scrutiny of his office? Arpaio told Phoenix TV station KNXV he doesn’t care how much an investigation of Obama’s birth certificate costs. “If I have to send 10 deputies down there (to Hawaii) for security reasons, I’ll do it,” he said. But that’s politics. Since when did anyone take political shenanigans as fact? You’d think Maricopa County taxpayers might be concerned over how much money he’s willing to spend on this. Then again, if his taxpayers think the biggest law enforcement threat to their safety is President Obama’s birth certificate, they elected their guy. Bennett denied that he himself was a birther when he set out to verify Obama’s Hawaii birth certificate. He said he was responding to the more than 1,200 emails he had received from constituents demanding he check into the record. Bennett said Obama’s name might not qualify to appear on Arizona ballots if Hawaii couldn’t verify his birth certificate. I easily get 1,200 emails in a week and most of them are worthless to me, mostly because they aren’t pertinent to what we do as a regional business publication. Some are political rants. Either way, it’s easy to figure out and to get rid of those I don’t need. Bennett couldn’t do that? What’s more worrisome is that Republican political candidates in Arizona have determined their best chances for getting elected lies in running as far right as they can on the political spectrum. Bennett, who is a Republican, already has formed an exploratory committee to run for governor in 2014. He isn’t alone in that regard. Until now, though, Bennett had not done anything that made him appear to be off to an extreme. In Prescott where he lives, he’s a business leader and served on the Prescott Chamber of Commerce and Prescott City Council. He was in the state Senate from 1999 until he was term-limited out at the end of 2006. He was appointed Secretary of State replacing Jan Brewer when she was elevated to governor in 2009 and a year later won election to the office. But this Obama birth certificate matter was an embarrassment for Arizona. If Bennett and other politicians are rewarded for this behavior we are the ones to blame.

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

EDITORIAL

Go out, go downtown, it’s easy Businesses in downtown Tucson are hurting. So are businesses along Fourth Avenue. That is usually the case in summer but compounding the problems this year is construction of Sun Link, the 3.9-mile modern streetcar line. Two days don’t go by and there’s another report about something going on with the construction and almost always it has to do with a street that’s closed and a new detour. While trying to be well-meaning and helpful, we’d argue these reports amount to TMI — too much information. The block-by-block descriptions really only pertain to limits in certain areas, but leave people with the impression that downtown Tucson is a torn-up mess that should be avoided. It’s not. In the overall scheme of things, there might be some instances where a person might have to walk a block out of their way, but that’s about it. Last month’s annual fundraiser, “The Great Masquerade Escapade, the Ball to End All” put on by the Centurions, is a prime example of how to overcome this mentality. Despite warnings that the Centurions shouldn’t do the event downtown “because it’s all torn up,” event chairman Bill Hussey said they decided to stage it downtown for a second year. “Most of our patrons aren’t regular downtown goers but we had such great response to having the event downtown last year, we really wanted to do it again downtown this year,” Hussey told us. Not only were the Centurions facing the unknown challenge from the construction, they boldly raised the ticket price this year, which also could have hurt attendance. In the end, attendance was up 500 to just less than 5,000 this year. The 20,000 parking spaces that are

available downtown were more than enough to handle the attendees and another 300 volunteers. Issues associated with the streetcar construction were a non-issue and, in the end, the Centurions’ raised more money for Carondelet St. Mary’s Hospital. “Our event was even more successful than last year. The sky wasn’t falling downtown,” Hussey said, adding “There is a vibe downtown that you can’t find anywhere else.” Some other downtown special events haven’t done as well since construction for the streetcar began. And many businesses say they’re seeing fewer customers. Along Fourth Avenue where shopping can be more of a spur-of-the-moment decision and immediate access can be crucial, businesses feel their potential customers either aren’t making an effort or see it as too much bother to navigate around the construction. Retailers there are trying to counteract that with a discount card targeting customers willing to brave the construction. Downtown is still quite accessible. In fact, the only issue is for traffic coming in from the east on Broadway that can no longer jog over to Congress Street because it’s closed. But the reality is there’s been a traffic issue with the Broadway entrance since it was redesigned as part of the new Fourth Avenue underpass that opened in 2009. What’s happening now is no different and, in fact, parking in the new Centro Garage at Fourth Avenue is easy and will save you a lot of hassle. Otherwise, coming from the north or south on either Stone or Sixth avenues is as easy as from the west, off Interstate 10, on Congress and Broadway. The fact is downtown Tucson is open. The vibe is fun once you get there. And it’s not difficult. Don’t listen to the reports, just go and have fun.

InsideTucsonBusiness.com

JUNE 1, 2012

OPINION WAKE UP, TUCSON

Time is now to write next chapter for Tucson tourism On Wednesday (May 30), our friends at Gray Line, Marriott University Park Hotel and SKAL International threw a Welcome to Tucson party for new VisitTucson CEO Brent DeRaad. It was obvious that the more than 150 attendees were eager to begin co-authoring the next chapter on our region’s tourism industry. As two guys who were involved with the change in the previous leadership team at the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), we are here to say it’s time to put away the past and start cranking on the future. We are fully behind DeRaad and his team. We are already actively participating with the organization. We encourage you to do the same. Tucson lured DeRaad from Scottsdale. He went from a 500-pound tourism gorilla to an organization in Baja Arizona that got lit up in a Pima County performance audit. How do we help him? Over the past few years, governmental jurisdictions have reduced or refused funding MTCVB due to concerns with the previous leadership. Mark the tape, Chris and Joe are going to say something nice about Pima County. The county, which did the performance audit, kept its funding levels unchanged. The audit commission is still working with the MTCVB’s executive committee to ensure that audit recommendations are taking place and, to

our knowledge, that is well underway. The City of Tucson’s audit, which was an accounting audit, gave the previous MTCVB leadership a passing grade. But in typical JOE HIGGINS fashion, despite the nicer review, the city decided to cut funding to the MTCVB. City officials have a tough time prioritizing. The county is putting 50 percent of its bed tax revenue in the MTCVB while the CHRIS DeSIMONE the city is investing only about 28 percent. Instead, the city is putting the rest of the money toward fixing the tenement known as the Tucson Convention Center, arts funding and that black hole called the general fund. We wouldn’t blame the county for being a

little miffed that it is bearing the brunt of the burden of trying to revitalize the important tourism industry. DeRaad’s hiring committee included Tucson City Councilwoman Shirley Scott and County Supervisor Sharon Bronson, both Democrats. We can only assume their presence on the MTCVB board means they want the very best for the organization. But what does it say when your part of a process of hiring the best person possible to do a job but then failing to fully fund the organization you’ve just hired him to run? It will be in the best interest of VisitTucson if these two electeds — with more than 30 years in office, combined — would convince the rest of the Democrats on the city council to do the right thing and fund our tourism marketing organization. There are more than 21,000 people in the Tucson region employed in the tourism industry. Funding tourism marketing would be a step toward fulfilling that old campaign promise to “help working families.” It’s also time for the Southern Arizona Lodging and Resort Association (SALARA) to make certain those 21,000 people they employ know exactly which council member and/or supervisor represents them. Then, make sure they’re registered to vote. Imagine what would happen if a city council

member were to be presented with worker/ voter data and a SALARA representative were able to say, “I am here representing the 3,746 registered voters who work in tourism and we would like you to vote to use the taxes we collect to fund the marketing of our industry. Is your re-election coming up next year?” That would be a conversation starter. Any organization that goes through change needs support along with new blood. This is the time to find out what MTCVB committees you can serve on. The board is made up of some good people but it needs some new blood. Incoming board chair is Michael Luria, with his experience in the restaurant industry and now as executive director of Children’s Museum Tucson, he has the knowledge that’s needed. Reach out to him. Tourism is Tucson’s growth industry right now. It doesn’t need an economic development organization to sponsor a drinking junket to San Diego. It’s clean and it’s already here. It’s a pretty simply formula: create jobs, raise tax revenues and make money for business owners. Wild stuff, huh?

Contact Joe Higgins and Chris DeSimone at wakeuptucson@gmail.com. They host “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM. Their blog is at www.TucsonChoices.com.

SPEAKING OUT

Elder abuse in Arizona is a serious problem and growing First of two parts. When Tom Horne was elected state Attorney General in 2010, he identified protecting older Arizonans from elder abuse and fraud as a priority. He established Taskforce Against Senior Abuse (TASA) to provide a direct line of communication for anyone to contact his office about elder abuse. TASA’s goal is to create legislation to protect the elderly. This includes requiring licensing for in-home caregivers. Right now there are no fingerprint or background check requirements for persons providing non-medical care. TASA emphasizes the need to identify elder abuse cases that can be prosecuted. The taskforce is also charged with raising community awareness of the problem. Another priority is to identify needs and concerns of senior citizens in communities around the state. There is an active partnership in Pima County with the Attorney General’s Health Care Fraud and Abuse section. A prosecutor and a special investigative agent work directly with the Tucson Police Department and the Pima County Sheriff ’s Office to investigate and prosecute elder abuse cases. The Pima County Sheriff’s Office defines elder abuse: “when someone hurts an elderly person physically, emotionally, or through a lack

of proper care. This is a serious crime.” A caregiver may deprive an older person of food, water, medication, medical services, shelter, cooling, heating or other services. It is also possible that CAROL WEST seniors may suffer from self neglect. Scams are some of the most common forms of elder abuse; this occurs when there is “illegal or improper use of a vulnerable or incapacitated adult’s financial resources for another person’s profit or gain.” Scammers often see older people as easy targets. Elder abuse is increasing. According to the Arizona Attorney General’s office, it is estimated that by 2020, one in four Arizonans will be over 60. Elderly victims of mistreatment are mostly over 75 years of age and two-thirds of them are females. They may have one or more physical or mental impairments and are widowed, divorced, or socially isolated. They are often inexperienced in handling financial matters. The abused usually live with their abuser, or if victims do live

alone, they fear being institutionalized. People who abuse and exploit the elderly do not discriminate, according to TASA. Their abuse affects “every segment of society, all ethnic and social backgrounds, and both men and women.“ There are many possible causes of elder abuse. The elderly person may be in poor health. Caregivers may not have the strength or the skills to take care of an elderly person, which can be very stressful. The same external stressors that cause child or spousal abuse can also cause elder abuse: financial problems, job stress, family problems, for example. Experts believe that “social isolation of the frail elderly is a possible contributing cause of abuse; isolation can also be a factor for potential mistreatment.” If violence is learned as an acceptable behavior in childhood, that child (now in the role of caregiver) may simply return the abuse they suffered. Caregivers who have problems with alcoholism, substance abuse, or behavioral health problems are more likely to become an abuser than those who do not have these problems. The Attorney General’s office estimates that only one in every fourteen cases of elder abuse is reported. The elderly person may fear retaliation

from the abuser. Seniors can feel that no one will believe them, and they could be separated from the family and institutionalized. They often fear loneliness or are afraid of the criminal justice system. Also, a senior adult may feel guilt and shame that his/her children are responsible for the mistreatment. If the person is isolated, he/she may not know where or how to seek help. Some victims blame themselves for what is happening, or they tolerate and accept the mistreatment. Strokes, dementia and mental impairments may cause memory loss, so the abused person cannot communicate effectively. Reports of abuse, neglect, or exploitation should be made to the Adult Protective Services Hotline toll-free at 1-877-767-2385 or to local law enforcement agencies. Reports can also be made online — at www.azdes.gov/ reportadultabuse . Reporting abuse gives victims the chance to receive help and reduce the risk of future abuse.

Contact Carol West at cwwfoster@aol.com. West served on the Tucson City Council from 1999-2007 and was a council aide from 1987-1995.

30 JUNE 1, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

An attorney’s role includes giving back to the community “I will remember that, in addition to commitment to my client’s cause, my responsibilities as a lawyer include a devotion to the public good.” — State Bar of Arizona – Lawyer’s Creed of Professionalism When attorneys undertake the educational rigors of law school, the focus of their curriculum is on the law and its many intricacies. After graduating and passing the Bar exam, they emerge, take the Oath of Admission into the State Bar and they’re off to the races. The Oath of Admission stresses the attorneys’ respect and commitment to the letter of the law, to the judiciar and to their clients. The final part of the oath states: “I will at all times faithfully and diligently adhere to the rules of professional responsibility and a lawyer’s creed of professionalism of the State Bar of Arizona.” If the Oath of Admission is the “mission” of the profession, the Creed of Professionalism is the “vision,” outlining the structure upon which Arizona attorneys frame their profession. Within the creed is the charge for lawyers to make a commitment to a greater community — the public good.

From television shows to novels, the layperson gets to see a part of the practice side of law – the “action” side. (Showing what most attorneys do, most of the time, would fail miserably as comedy or drama, for no one MARK RUBIN wants to see someone like me talking on the phone, drafting documents, or researching the law.) But, in addition to spending time performing routine tasks, most attorneys fulfill that last mandate in the Creed—“devotion to the public good” on a more personal and private basis. In Tucson we have somewhere in the neighborhood of 2,800 nonprofits and foundations. We have schools and universities, youth sports teams, arts organizations, groups devoted to managing and solving the many problems faced by those less fortunate, hundreds of places of worship and one million people in our metropolitan area. These entities all need assistance with fund development

(everybody needs more money), but they also need help with governance matters, strategic planning and the myriad issues that face any organization. Attorneys are trained communicators, but they are also skilled listeners and problem solvers. Many of them deal with and help people solve problems every day between 8 and 5. Some attorneys are very familiar with nonprofit issues like fund development, governance and strategic planning, but even those who aren’t, because of their communication and problem solving skills, offer much to our community. No matter where you turn, you will see members of the legal profession hammering nails, feeding the disadvantaged, working with the illiterate and undereducated, running to raise dollars to fund research for diseases, or supporting the arts with all of its diversities. And rare is the organization that does not have within its leadership structure one — and often several — attorneys. Attorneys are tutoring, coaching, mentoring, advising and leading those entities. Within law firms, public and corporate law offices, thousands of paraprofessionals and other employees pitch in to improve and move

for Public Land’s analysis provides a skewed picture of Tucson’s park system. The analysis ranked Tucson 31 and Phoenix 16. Tucson actually beat Phoenix for playgrounds per 10,000 residents, beat Phoenix on percentage of residents within one half mile of a park, and came close in per resident park spending. However, it was the acres of parkland within a city’s legal boundaries that was weighted the heaviest. Phoenix has mountain ranges inside its city limits, which the city has made into parks, such as South

Mountain Park. We differ geographically in that our mounts surround the city of Tucson. We also differ in that our mountain parks are just outside the Tucson city limits. Tucson Mountain Park runs along the city of Tucson’s western boundary for several miles and is heavily used by city residents. A more realistic analysis would use the metropolitan area as a boundary, instead of the city’s legal limits. In that case, Tucson would likely move above Phoenix in the rankings and much closer to the top of the list.

LETTERS

Analysis was skewed in park rankings TO: The Editor FROM: C.H. Huckelberry, Pima County administrator RE: ‘Tucson ranks near bottom on analysis of parks,’ May 25 issue While there is no right or wrong way to assess the part systems of cities, the Trust

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Is it hot enough for you yet? Yes, plenty hot . . . . 52% No, I can deal with a few extra degrees . . . . . . . . . . . . . . 11% Hahaha, not funny . .17% Next week’s poll: Do you plan to support downtown businesses during streetcar construction?

Mark Rubin is a shareholder with the Law Firm of Mesch, Clark & Rothschild.

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BEGIN THE CAREER OF YOUR DREAMS

BY JOINING OUR FAMILY AS AN INSURANCE AGENT-IN-TRAINING! As an Insurance Agent-In-Training (AIT), you receive on-the-job training–with pay–from highly successful agents while you work as an employee of American Family. A blend of learning, practice and real-world application, this program combines current technologies and tried-and-true techniques to provide a complete learning experience along with a consistent income. In as little as one to two years you may be ready to run your own agency and to enjoy all the benefits that come with it. Due to state expansion there are openings throughout Arizona.

STAFF

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

our city and county forward. The motivation to volunteer and donate time and treasure does not rest in a creed, but rather in our local culture of philanthropy. But the creed reminds those of us in the legal profession that we are fortunate to have the resources to support our community and to lead. This piece focuses on attorneys and the legal profession. I would be remiss, however, if I did not salute the many people in our community, from all walks of life, who share their time, talent and treasure. While attorneys are obliged by the creed, the creed simply reflects the same set of principles and values that motivates so many, from all walks of life, to roll up their sleeves, pitch in and share what they have with others. We are all blessed in many ways! Those of us who reside in Tucson are blessed by, among other things, the fact that we live in a community full of generous people. As an attorney, I am proud of my profession and the fact that we play a significant role in helping others by fulfilling our commitment to our community.

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

ACCOUNT EXECUTIVE LAURA BOHLING lbohling@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

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CARTOONIST WES HARGIS

To begin your career with American Family Insurance, email resume to abenavid@amfam.com For further information please visit www.amfamagencycareer.com

InsideTucsonBusiness.com

JUNE 1, 2012

JONI Condit

Woman Of Influence

2011

Keri Silvyn

Woman Of Influence

2010

Ruth

Brinkley Woman Of Influence

2009

2012

Call for

Nominations

9th Annual

Women of Influence Do you know or are you a women in Tucson and Southern Arizona that has made a difference in their careers or community? Nominations are open until midnight

Nancy

Wednesday, July 4, 2012

McClure Woman Of Influence

2008

Kerstin Block

Woman Of Influence

2007

To nominate go to www.insidetucsonbusiness.com and click on the Women of Influence icon Honorees will be recognized in the October 26, 2012 issue of Inside Tucson Business with a breakfast celebration in November 2012.