Inside Tucson Business 06/08/12 by Territorial Newspapers

SIMUTEK LOVES APPLES TO APPLES Apple specialist once again back on top PAGE 11

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JUNE 8, 2012 • VOL. 21, NO. 54 • $1

Professional copper thieves? Property owners question who’s responsible Page 3

Concern over economic cliff UA update predicts yo-yo recovery Page 5

Digital dashboard

Otis Blank

TucsonLikes is comprehensive content manager Page 6

Marana Business Walk works on retention

PAGE 4

Pima County’s Huckelberry defends TREO trips By Patrick McNamara Inside Tucson Business In spite of the outcry resulting from Tucson Regional Economic Opportunities (TREO) “leadership exchange trip” to San Diego, Pima County Administrator Chuck Huckelberry is defending them. “In my view, both the Huntsville and San Diego trips were productive and have helped shape the economic development agenda for the county,” Huckelberry wrote in a memo to the county Board of Supervisors. Last year, TREO took a delegation to Huntsville, Ala., to study that area’s defense-based economy. Huntsville is also the city Raytheon

Missile Systems chose over Tucson to build a new manufacturing facility. Huckelberry credits the 2011 trip with helping the county decide to spend $5.9 million to purchase private land south of Raytheon’s Tucson headquarters site, to act as a buffer against urban encroachment. While in San Diego, Huckelberry wrote that he and other local leaders studied the region’s military and biosciences based sectors, its relations with Mexico and downtown redevelopment. He noted that San Diego’s military infrastructure is a substantial engine for the area’s economy that could not be recreated in Tucson,

despite the presence of Davis-Monthan Air Force Base. In biosciences, Huckelberry wrote that San Diego officials discouraged the TREO group to attempt to compete with the area’s pharmacy-based sector. The county administrator said he found encouragement for the Tucson region in the areas of medical diagnostics, which has become an economic engine with Roche Group’s Ventana Medical Systems, Sanofi-Aventis, CPath and the University of Arizona’s Bio 5 Institute. Huckelberry also said that in San Diego, the international border with Mexico is viewed more as an economic opportunity than a problem as many in Southern Arizona see it.

“We clearly require a renaissance in how we in Arizona, particularly southern Arizona, deal with Mexico,” he wrote. San Diego’s downtown redevelopment also presented a stark difference from how the Tucson region has handled the same issue. The criticism of TREO’s trip to San Diego was sparked by reports of Tucson City Councilman Paul Cunningham making inapropriate comments to at least one city employee. Cunningham this week acknowledged he has aa drinking problem and is seeking help.

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

2 JUNE 8, 2012

INSIDE TUCSON BUSINESS

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.

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JUNE 8, 2012

NEWS

Copper theft frustrates building owners, tenants and police By Roger Yohem Inside Tucson Business Although it can’t be proven, copper thefts often appear to be inside jobs. The thieves have the professional skills and tools of someone in the construction industry. There’s also the suspicious disappearance of appliances, sometimes just hours after a late-afternoon delivery before the installers arrive early the next morning. Is it just coincidence? A crime of opportunity? Or a coordinated effort? Either way, it’s an aggravating and expensive problem for commercial building owners and police battling thieves who sell the scrap for pennies on the dollar. “It’s frustrating. The people stealing are smart, most have the equipment and knowledge you see on a professional level. Most times, they’re not going into our properties and wildly ripping out walls and ceilings to get copper. It is not a hatchet job,” said Eileen Lewis, director of property management for Picor Commercial Real Estate Services. In the last three years, commercial properties, whether occupied or vacant, have been prime targets. It’s a costly crime that creates a damaging cycle of order, deliver, install, theft, repair, re-order, re-deliver and re-install rapidly. Lewis laid out a typical scenario that recently occurred at Exchange Place, an industrial park at Prince and Interstate 10. There are 113 small business suites at the complex, each with a separate water meter, and new backflow valves were being installed. Thieves promptly hit the site and took 40 valves. “We think they were interrupted or scared away, they didn’t get them all. They knew what they were doing. Turned off the water, cut the pipes, took the valves. It wasn’t just rip, rip, rip,” she said. “They got

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

Some property owners believe “professionals” are stealing copper-laden materials.

a few hundred dollars for scrap and it cost us $10,000 to replace and repair everything. Tenants need water.” The issue has law enforcement just as concerned as the business community. Pima County Sheriff ’s Sgt. Dawn Barkman said it’s possible that professionals are stealing materials, “but nobody tracks it. It could be that they worked occasionally in construction, but there is no hard evidence of a connection.” Another possible scenario involves drug users who “tend to gravitate to labor to steal whatever they can. And there are people who don’t want to work at all. They would rather steal for their money,” Barkman said. Prime targets for copper are air conditioner coils, water pipes, telecom and utility equipment, and wire to light streets and parks. As a crime of opportunity, “people seek methods to obtain a quick dollar,” said Tucson Police Sgt. Maria Hawke. When arrests are made, no one traces a suspect’s work history. Hawke, Barkman and Lewis all said the weak economy is a factor. Thousands of tradespeople are under-employed or unemployed, but still have the tools and skills to remove items they once were paid to in-

stall. But other than intuition, there is no evidence of a connection. The suspicion also spills over to the appliance industry. There is speculation that delivery and installation crews share inside information with friends, family or acquaintances about work orders. Soon after delivery, the items disappear. Lewis knows of a local home builder who had that suspicion. After the appliances were received, the builder hid tracking devices in the shipment. The appliances were stolen the next night and later recovered in an appliance warehouse. For copper scrap, metal recyclers are to verify the materials are not stolen. Hawke said that is where police focus their efforts. “We conduct investigations and undercover investigations on a regular basis, as a normal course of business,” she said. Lewis commended law enforcement for their co-operation but realizes there are many businesses buying stolen metals. “What concerns me is the breakdown in the system,” said Lewis. “Everyone knows the copper is going to the scrap yards. That is the only market for stolen copper.” Property owners also face a more sophisticated criminal. Picor has a listing for vacant building by the Tucson International Airport where someone with inside knowledge of the security system bypassed the alarms. “They stripped out everything they could that was copper. That cost us almost a half million dollars to get back up and running,” Lewis said. To thwart thieves, new security tactics are being tried. In addition to surveillance cameras, more rooftops are being equipped with motion detectors to guard air conditioning coils. Also, pallets of wire, appliances and other construction materials are being “bugged” with tracking devices.

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

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

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.

Arizona could take $2.1B hit from defense cuts Arizona’s defense industry could take a hit of between a $1.1 billion and $2.1 billion, depending on the budget for the U.S. Department of Defense is reduced, according to the Center for Security Policy in Washington, D.C. Overall, the amount represents cuts from 9 to 18 percent from this year’s budget. The higher amount would be the result of automatic spending cuts that are set to take place if Congress and the White House fail to agree on a plan to reduce the deficit. Arizona defense contractors take in $11.8 billion in government contracts, ranking the state ninth. The state’s largest defense industry, according to the center, is guided missile and space vehicle manufacturing, which accounts for nearly $3.9 billion in contracts. Although company breakdowns weren’t provided, Tucson-based Raytheon Missile Systems is one of the companies that received contracts.

State officials shake up Rio Nuevo board Jodi Bain and Rick Grinnell have been removed from the Rio Nuevo Multipurpose Facilities District’s board by state Senate President Steve Pierce, R-Prescott, and will be replaced by Fletcher McCusker, CEO of Providence Service Corp., and Chris Sheafe, a developer. Pierce was out of town and his office couldn’t comment on why the change was made. Grinnell said he thinks the moves were the result of a lobbying campaign against him and Bain by Tucson city officials and others. Rio Nuevo is a voter-approved tax increment financing district created in 1999 to redevelop downtown Tucson but has been the source of controversy, including a 2009 audit that found that under the city it had spent $230 million but had completed little to show for it. The Legislature then reconstituted the board with appointees and in recent months has been at odds with city officials that have included a lawsuit filed against the city seeking millions of dollars. Bain was the chair of the board. The nine member board has two other seats that are currently vacant. Sources said Gov. Jan Brewer’s office was also re-evaluating one of her appointees on the Rio Nuevo board.

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

6 7-9 10 11 14 14 16

Inside Media Finance Real Estate & Construction Biz Buzz Editorial Classifieds

17 18 19 20 20 23

4 JUNE 8, 2012

INSIDE TUCSON BUSINESS

NEWS

Marana chamber ‘steals’ Business Walk idea to retain business By Roger Yohem Inside Tucson Business Although they openly admit to stealing the idea, Marana Chamber of Commerce officials say it’s justified because it helps the town retain existing businesses. The ultimate goal is to have solid public policies in place that build a strong economy and job base for the town of 34,000 people. “Business Walk” is a successful business retention tactic Marana “swiped” from the Sacramento (Calif.) Metro Chamber, with its approval. Basically, it’s a variation of speed dating. Two-member teams, made up of one chamber and one town official, visit businesses for about 10 minutes to “ignite a dialogue.” “The end game is to have a strong and strategic economic plan for the town and chamber that has a focus on retention,” said Ed Stolmaker, president/CEO of the Marana chamber. “Business Walk gets us business feedback.” So far, Marana has had two Business Walks. The first was in March when teams visited 17 designated zones and made personal contact with more than 380 businesses. The second was May 30 when teams focused on the North Silverbell Road corridor and Arizona Pavilions on Cortaro Farms Road west of Interstate 10. Working from a questionnaire, one official asked questions while the other wrote down responses. Typically, teams try to spend less than 10 minutes at each place. The project is comprehensive, including large manufacturing companies such as Sargent Controls and Aerospace and Lasertel to small business including Great Clips and the Fortune Cookie Restaurant. Chamber walkers included Mark La Bree, sales center manager at Coca-Cola; Julee Baxley, owner of Integrity Automotive; Marsha Regrutto, manager of marketing and services at Trico Electric Coopertive Inc.; Denisse Bravo, owner of an American Family Insurance agency; Jeff Bronaugh, managing partner of BCE Consulting; and Loree Funk, senior service planner for Southwest Gas. For Marana, Mayor Ed Honea led the way with officials including police chief Terry Rozema, town manager Gilbert Davidson, town clerk Jocelyn Bronson, councilman David Bowen; and Curt Woody, who was hired in April as the town’s economic development and strategic initiatives manager. Together, the teams visited 228 businesses on the Business Walk. “What can we do together to improve business? That’s what we ask when we walk in the door. Tell us if you have a better idea. What do you need to grow your business?”

Otis Blank

A first-ever report on hospital safety this week gave Oro Valley Hospital an “A” while five Tucson area hospitals were graded at “C.” “It’s certainly good news that Oro Valley got an ‘A,’” said Larry Aldrich of the Arizona Business Coalition on Health, which is part of the National Business Coalition on Health and a regional partner of the Leapfrog Group, which produced the report. “It’s arguably bad news that some others did not (receive high marks).” Aldrich formerly was the CEO of University Physicians Healthcare, which merged in 2010 with University Medical Center to create the University of Arizona Health Network. Oro Valley Hospital, 1551 E. Tangerine Road, Oro Valley is part of Northwest Healthcare. Among other Tucson hospitals, Carondelet St. Mary’s, 1601 W. St. Mary’s Road, received a “B.” Hospitals receiving “C” are Carondelet St. Joseph’s Hospital, 350 N. Wilmot Road; Northwest Medical Center, 6200 N. La Cholla Blvd.; Tucson Medical Center, 5301 E. Grant Road; University of Arizona Medical Center, 1501 N. Campbell Ave., and University of Arizona Medical Center - South Campus, 2800 E. Ajo Way. Dr. Andreas A. Theodorou, chief medical officer of the University of Arizona Medical Center, issued a written statement saying, “these quality or safety scores are only part of how one evaluates a hospital. The variety of services available or, for some patients, the availability of a specific service or physician, go into the equation.” Data to create the grades were taken from publicly reported sources such as Medicare and from the 1,200 member hospitals that self-report to Leapfrog. That creates some concerns for Pete Wertheim of the Arizona Hospital and Healthcare Association. “The thing that’s most concerning is that it’s a pay-to-play type of survey,” Wertheim said. Wertheim said that in addition to the public information that Leapfrog gathers, many hospitals pay for membership to the organization, which can influence scores as it creates additional data sets for the Leapfrog to analyze. “The question is, do hospitals that are not in the Leapfrog system get penalized for not reporting to Leapfrog?” he said. Overall, however, Wertheim said the Arizona Hospital and Healthcare Association is supportive of efforts to provide patients with more information about quality of care. Based in Washington, D.C., the Leapfrog Group evaluated 2,600 hospitals across the country. It expects to issue an updated report in November.

Mark La Bree of the Marana chamber led a team that visited David Lightfoot at Continental Ranch Self Storage (top) and Tabitha Harris at A Lotta Storage (bottom).

Stolmaker said. “We also ask what’s working, what do you like about doing business here?” Once the data is collected, a quantitative analysis is done. Signage, roads and regulations often top the list. “Retention is paramount for us and the

town,” Stolmaker said. “The businesses really like Business Walk, their comments are the most important thing,” Stolmaker said.

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

Otis Blank

Oro Valley Hospital gets ‘A’ for safety

InsideTucsonBusiness.com

JUNE 8, 2012

NEWS UA mid-year assessment

This Week’s

Tucson’s economic recovery having trouble staying in gear

Good News TEP honored for solar Tucson Electric Power this week was recognized as the 2012 Investor Owned Utility of the Year by the Solar Electric Power Association at the Edison Electric Institute’s annual conference in Orlando, Fla. TEP’s efforts were evaluated against 50 companies in terms of completion of solar projects, program direveristy, program partnerships, innovation, leadership and support from management, community awareness and marketing. “Last year, solar energy was the nation’s fastest growing generation source thanks in large part to utilities like Tucson Electric Power,” said Julia Hamm, president and CEO of the solar association. “Their innovation and strong portfolio should serve as a model for other (investor owned utilities) on how to successfully embrace clean solar energy.”

By David Hatfield Inside Tucson Business

The Tucson UANews

The Tucson region’s economic recovery is trying to stay in gear and gain traction but obstacles threatening it include an “economic cliff ” coming Jan. 1 if Congress doesn’t come up with an alternative to the elimination of tax cuts and increased government spending. That was the message to about 450 who attended the University of Arizona’s Eller College of Management’s 2012 mid-year economic assessment Tuesday at the Westin La Paloma Resort and Spa, sponsored by JP Morgan Chase and Co. Marshall J. Vest, director of the Eller College’s Economic and Business Research Center, said it was “personally disappointing” to report that the Tucson region hasn’t made headway in regaining the 35,000 jobs that were lost in the economic recession over the last four years. Statewide, Arizona has created 75,000 jobs since August 2010 and 69,400 of those have been in the Phoenix area. The Tucson region added just 800 jobs. And so many people have stopped looking for work that the labor participation rate is the lowest it has been in three decades. Vest said that creates an unknown for the economy recovery. If those who’ve dropped out try to return to the workforce and there aren’t enough new jobs for them, it will drive up unemployment rates. UA economics professor Gerald J. Swanson said he expects the unemployment rate to “yo-yo” up and down for a while. Swanson is an expert on global economics while Vest focuses on regional economics. Swanson said he was particularly taken by the disparity in unemployment among people who had reached different educational levels. Only 45.2 percent of people between 16 and 65 with less than a high school education are in the U.S. workforce and 39.8 percent are employed. Among people with a bachelor’s degree or more, 76.2 percent are in the workforce and 73.2 percent are employed. So while the national unemployment now stands 8.2 percent, the rate for people without a high-school diploma is 11.9 percent and just 3.9 percent among those who have a college degree.

Marshall J. Vest, left, and Gerald Swanson

Swanson said he fears Washington, D.C., politicians are playing a game of chicken this year with either side waiting for the other to blink on the payroll tax cuts and Bush tax cuts that are due to expire at the end of the year when federal spending is due to increase. He asked the audience if anyone felt Congress was preparing to address the issue. “I don’t see it either,” he said, shaking his head. “There’s not a single forecast out there that says things will get better (if Congress doesn’t act),” he added. Additionally, mudslinging among candidates is also hurting the economic recovery because it doesn’t instill confidence in consumers, Swanson said. In keeping with his projection issued at the end of 2011, Vest said he anticipates the Tucson region’s economic recovery will continue but at a historically slow pace due to tight credit, reduced mobility for more people to move in to the region, lack of consumer confidence and a continuing drag from the public sector. It will take at least until 2015 before the damage from the recession is repaired. Among other topics touched on by Vest at the economic assessment: • The Tucson region’s population is now at about 991,000, still under the 1 million mark, but after two years of declining it is starting to show some growth and will be back pacing at about 1.8 percent annually by 2015 and 2016. • Arizona’s birth rate has fallen dra-

matically in the last five years and is now stabilizing at about 82,000 a year, where it was 12 years ago. Most of the decline is among Hispanics. • The housing market is starting to show some upward growth as investors are coming back to buy. “The feeling is prices are at the bottom and they better get back in before the train leaves the station,” Vest said. • Home prices in the Tucson market are up 15 percent over the past six months, according to the Tucson Association Realtors’ Multiple Listing Service but the Federal Housing Finance Agency shows that sales of existing homes is still declining. • Inventory of homes on the market has fallen dramatically over the last year to about a 4-month supply, which Vest described as at the high end of normal. • Retail sales grew by 7.3 percent last year, the highest since 2005 when there was a 9.2 percent gain. In February alone, retail sales were up 14.4 percent over February 2011. • Retail sales growth is projected to slow this year to 4.9 percent as pent-up demand is satisfied. • Restaurant and bar sales are projected to jump 5.1 percent this year, after increasing 3.8 percent in 2011.

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

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

Raytheon layoffs? There’s been nervousness for several months at Raytheon Missile Systems over job cuts that could happen Jan. 1 if Congress fails to come up with a budget deficit reduction plan by then. Raytheon and other defense contractors are about to put out some hard numbers. Requirements that employees must be notified of layoffs of 50 or more employees mean the numbers will come out before the November elections. Across the U.S., 74 percent of Raytheon’s sales come from the U.S. government, according to the Wall Street Journal. Since not a lot of other entities are in the market for missiles, it’s logical to assume the Missile Systems division could be hit especially hard.

Barber-Kelly race is close Voters in Congressional District 8 having trouble getting inspired to cast their ballots in Tuesday’s special election might be motivated by that fact that it looks as if any ballot could make the difference. It’s that close, if you believe what both sides are saying about their polls. Republican Jesse Kelly, who came out of the primary with a 6-point lead, has seen that cut in half in recent weeks while Democrat Ron Barber has finally moved ahead of his opponent in a poll. Either way, both are within the polls’ margins of error. If you’ve got an early ballot make sure it’s in the mail today (June 8) or take it to your polling place between 6 a.m. and 7 p.m. Tuesday.

6 JUNE 8, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES Chapter 11 Business reorganization James E. Chaffin and Barbara D. Chaffin, also known as Barbara Derry Chaffin, doing business as Chaffin’s Diner and Chaffin’s Family Restaurant, 3001 S. Cottonwood Lane. Principal: James E. Chaffin and Barbara D. Chaffin, joint debtors. Assets: $482,158.00. Liabilities: $1,019,362.25. Largest creditor(s): BLC LLC/ Ciena Capital LLC, Greenville, S.C., $460,517.95; and Bank of American, Greensboro, N.C., $250,607.00. Case No. 12-12060 filed May 30. Law firm: Eric Slocum Sparks

FORECLOSURE NOTICES JMAZ LLC 2085 S. Alvernon Way 85711 Tax parcel: 130-18-090B2 Original Principal: $196,000.00 Beneﬁciary: Bank of Tucson Auction time and date: 11 a.m., Aug. 10, 2012 Trustee: Ronald M. Horwitz, Jaburg & Wilk, 3200 N. Central Ave., Suite 2000, Phoenix

LIENS Federal tax liens Christian Youth Theater Tucson, 6318 E. Broadway. Amount owed: $8,945.48. WPNT-Tucson LLC, 8838 E. Broadway. Amount owed: $1,936.15. Real Estate Direct Inc., 2650 E. Broadway. Amount owed: $6,013.57. Healthquest Chiropractic LLC and Charles Spear, 4715 N. First Ave. Amount owed: $2,625.81. Gwenneth’s Shoe Repair and Gwenneth T. Sheahan, 6072 N. Oracle Road. Amount owed: $1,824.93. Game On Sports Grille LLC and Jay H. Thorpe, 4932 N. Avenida De Castilla. Amount owed: $2,881.84. Better Bodies Personal Training, 7285 E. Tanque Verde Road. Amount owed: $120,616.59. Star Auto Glass of Tucson and Urban’s Star Auto Glass Inc., 1687 W. Grant Road, Suite 101. Amount owed: $15,309.92. Robert Wolkin PC, 3301 E. Camino Campestre. Amount owed: $9,669.13. Desert Reﬁned Products Transport Inc., 831 S. 59th Ave., Phoenix. Amount owed: $3,526.67.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Extreme Sports Group LLC, 9216 E. Colette St. Amount owed: $46,979.38. Sonora Mechanics LLC, 2501 E. 22nd St. Amount owed: $4,685.02. US Press & Graphics Inc., 7664 E. Parkview Drive. Amount owed: $20,804.67. Appliance Installations Inc., 7932 E. Shimmering Way. Amount owed: $8,907.16. Affordable Septic Systems & Excavation, 8541 E. Colette St. Amount owed: $31,522.02. Kino Building Systems Inc., 9126 E. Calle Diego. Amount owed: $15,529.89. IBA Associates LLC and Chandler Hill Partners, 2450 N. Pantano Road. Amount owed: $1,718.60. Enrichment Academy LLC, 4225 W. Ina Road, Marana. Amount owed: $1,576.38. Enrichment Academy St. Mary’s LLC, 1415 W. St. Mary’s Road. Amount owed: $2,326.38. Little\Big Noise LLC, Blue Mesa Studios and Mother Hubbard’s, 522½ E Speedway. Amount owed: $3,905.70.

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

HD Supply Facilities Maintenance Ltd against Firm Foundations-Columbus Village. Amount owed: $7,798.74. Erickson Construction LLC against Willard C. Jones and Janice L. Jones and Dorn Homes Inc. Amount owed: $24,625.00.

TucsonLikes seeks to corral social media for businesses By Alex Dalenberg Inside Tucson Business Kevin Madden likes Facebook and other social media outlets. Lots of other Tucsonans do too. But Madden, the eponymous CEO and founder of Madden Media, says Tucson businesses still struggle to get in front of the hundreds of thousands of local eyeballs scanning feeds and reading tweets throughout the day on social networks. “Social media is the real deal and the fastest growing adopters are businesses,” Madden said. “But most businesses are just getting going with social media. The monetization and business side of services like Facebook are only a couple years old.” Which is why Madden and his company are taking a big bet on social networking with a new online marketing platform called TucsonLikes. The Web-based service is a suite of social media services and tools for businesses looking to boost their online street cred and otherwise win more friends, followers and fans. For Madden, the numbers behind social media represent an enormous opportunity. According to the company’s research, some 400,000 people in the city are and manage comments, members of the Web’s BIZ FACTS among other things. biggest social networkThat makes the service TucsonLikes ing site and half of those similar to free online apps users are logging in ev345 E. Toole Ave. like Hootsuite that give l eryday. users centralized manu www.maddenmedia.com/ With that many ustucsonlikes/ agement and analytics for ers up for grabs on sotheir accounts. But Madt 1-800-444-8768 cial media — and that den hopes the secret sodoesn’t even take into cial media sauce will be in account other sites such as Twitter, Tum- Tucson-based customer service, done by blr and Google Plus which TucsonLikes humans. also covers — Madden is adamant that Personalized services include social there is money to be made on the social media consulting including an initial sitWeb. down consultation, plus 9 a.m. - 5 p.m. ac“That’s an enormous number,” Mad- cess to Madden’s social media specialists, den said. search engine optimization services and To that effect, TucsonLikes, which of- social media training and webinars. ficially launched at the end of February, Much of the education component represents a significant investment for goes into teaching businesses how to efMadden. The 93-person company hired ficiently and effectively interact on social 13 full-time employees to head up the ef- media, said Sandy Kenny, vice president fort from Madden’s headquarters, 345 E. of TucsonLikes. Toole Ave. downtown. For example, the average Facebook TucsonLikes, which starts at $500 per post stays in users news feed for less than month, comes in two parts. The first is an one hour, but if people are commenting it online dashboard where businesses can will stay fresh on browsers and mobile demanage multiple social media profiles, vices for close to an entire day. including Facebook, Twitter, Tumblr and “We want to help teach people how to Google Plus. Users can schedule posts, create a dialogue,” Kenny said. view statistics to analyze how well they are Starting at $1,000 per month, businessinteracting with their followers and read es can completely hand over the social

media reins to Madden, which provides custom content posts and tweets as well as other premium services. But overall, the idea is to give local businesses tools to better manage their social media presence, which can be time consuming. “If you’re going to be on social media you have to be on the platform consistently. You have to be doing it on a daily basis,” Kenny said. TucsonLikes is also bringing significantly different clientele to Madden, which has traditionally focused on travel and tourism marketing, publishing glossy magazines and working tourism organizations throughout the U.S. There are about 20 users so far for TucsonLikes, including the Tucson Museum of Art, Chef Janos Wilder’s Downtown Kitchen + Cocktails and Biosphere 2. Heather Murray, assistant firm administrator for the accounting firm BeachFleischman, a beta tester for TucsonLikes, said the tool has allowed the company to cut the time it spends on social networking by half, from 30 minutes per day to 15 minutes per day. “We were able to message three times the amount of useful content,” Murray said in an email. “It’s significantly increased our presence and ability to engage with followers.”

InsideTucsonBusiness.com

JUNE 8, 2012

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INSIDE TUCSON BUSINESS

BRIEFS Mayor gives self ‘A-’ on job so far

GET ON THE LIST

After six months as Tucson’s mayor, Jonathan Rothschild said, “I’m going to give myself an A minus” for the progress he has made on his 180-Day Plan of goals made during his election campaign. “I think you can always do better,” he said at an event Monday commemorating the 180th day. “What I’m hearing is that we’re feeling a new energy in Tucson.” In particular, Rothschild said the city had made strides in jobs and economic development, environmental leadership, safe neighborhoods and open government. He noted the hiring of Maricela Solis as a business advocate in his office. Rothschild also said efforts to eliminate redundancies and contradictions in the land use code are beginning to take shape with the elimination of 178 pages of regulations. “They were not really substantial changes,” Rothschild said adding that the changes were meant more to create consistency in the inspection process. “The problem we had is that different inspectors would say this will take ten days or this will take 15 days.”

TELESERVICES

roadway median cleanup project. Cleanup efforts are continuing over the next month on Mission Road, Campbell Avenue, Golf Links Road, Valencia Road, 22nd Street, Speedway and Oracle Road.

Next up: Office machine LivingSocial plans retailers, Office furniture re- call center here The online group-buying website tailers, Office supply retailers LivingSocial says it will establish a cusInside 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: • June 15: Retirement communities, Active adult retirement apartments, Assisted living facilities • June 22: Office machine retailers, Office furniture retailers, Office supply retailers • June 29: Grocery stores, Drug stores • July 6: Biotech firms, Optics companies • July 13: Package express and messenger services, Moving companies, Freight services, Storage firms 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.

INTERNATIONAL TRADE

tomer office in Tucson and plans to hire 180 people. A job fair will be held 8 a.m.-8 p.m. June 14 and 15 at the Marriott University Park Hotel, 880 E. Second St. June 14 is for candidates who pre-applied at www. livingsocial.com/jobs and June 15 is for walk-in candidates. The full-time call center jobs include customer service representatives, customer service supervisors and office manager. A company news release said Tucson was selected because it has been one of LivingSocial’s strongest markets since it launched here in early 2011. LivingSocial partners with local merchants to provide daily discounts to products and services.

Mexican trade mission has supplier quest A June 18 trade mission to Mexico has a list of fulfillment needs from companies looking for American suppliers. Interested business 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 to visit the Sonoran industrial centers of Hermosillo and Guaymas. The organizers are working with several Sonoran firms to help fulfill their supply needs for aerospace-grade metals, plastic resins, metal plating, heat treating, packaging and wire harness assembly components, according to Eric Nielson, Arizona director with the U.S. Department of Commerce International Trade Administration. The trade mission will explore business oppoertunities in the industries of aerospace, automotive, electronics, and healthcare technology.

TRANSPORTATION

City halfway done with median fixes The City of Tucson Department of Transportation, working with the landscaping company the Groundskeeper, is nearly halfway finished with a four-month

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InsideTucsonBusiness.com

JUNE 8, 2012

PROFILE

Simutek once again riding the crest of the Apple wave By Alan M. Petrillo Inside Tucson Business They are Apple Specialists at a time and in a city that’s crazy for Apple products — iPhones, iPads and Macintosh computers among them — but what sets Simutek apart is something beyond the hardware. It’s the service. Located at 3136 E. Fort Lowell Road, Simutek was for years the only Apple retail outlet in the Tucson region, until Apple itself opened its own retail store in 2004 in the La Encantada shopping center in the Foothills. While Apple’s retail store siphoned some hardware business away from Simutek, it also caused the local company to focus more closely on what it is exceptionally good at — educating people about Apple products and providing stellar service, even for hardware purchased elsewhere. Rich Meindl, owner of Simutek, said being designated an Apple Specialist, the highest designation of independent Apple dealer, requires his store to hit higher volume targets for Apple. “You have to account for a certain percentage of products that you sell, you must have a service center and must maintain certain levels of training and certification with Apple,” Meindl said. Unfortunately for Meindl, Apple didn’t give Simutek a heads-up about opening its own retail store in Tucson. That first year, 2005, after the Apple store opened, Simutek’s revenue plunged 40 percent. “We knew it (the opening) would have a dramatic impact on us, so we had to figure out what we would do to counter it,” Meindl said. The answer lay in doing those things not available elsewhere at the time — service and education. But while building up the service and educational sides of the business, Simutek also moved into selling high definition televisions. “Those were high profit margin items in their day and we used those sales as our offsets,” Meindl said. “Then, every year after the first when Apple opened its store we started to see incremental increases in revenue.” At the time, Meindl was general manager of Simutek and was preparing to take over the business from then-owner Richard Nast.

Simutek’s heritage goes BIZ FACTS back to 1977 when Mike Gariepy began writing perSimutek sonal computer games to 3136 E. Fort Lowell Road sell on then-commonlywww.simutek.com used cassettes through his software firm, Simulated Technologies. He later built on his expertise in writing business software by opening the first Simutek retail store in 1979 at 4500 E. Speedway. At the time, Simutek sold Apple and other major brands of computers, printers, software and other computing elements. The business grew with Simutek with an additional retail store in Tucson plus stores in Casa Grande, Tempe, Phoenix and Scottsdale. That attracted the attention of Apple and in 1984 Simutek was among the first retailers to begin selling Macintosh computers. Two years later, Gariepy spun off the software part of the business into a separate company and sold Simutek to Richard Nast, who was general manager. Meindl came on board in 1994. In 2009, he purchased the company, Rich Meindl, right, Simutek’s owner, checks out a Macbook Pro laptop brought in for service by which by then was down to the single store on Dr. Marvin Slepian. mosphere so they know they’re treated well,” choose a favorite charity, and each month one East Fort Lowell Road. of them will get a fixed dollar amount donation Before Meindl bought the business, he said he said. Scott said that while Apple products are sold based on our previous year’s revenue,” Meindl he thought long and hard about what Simutek should be and determined it is a service orga- in a lot of different places, most other organiza- said. “We decide on a percentage to donate, nization first, and a sales and education group, tions are unable to service them within the time divide the number by 12 (Simutek has 12 employees, five full-time and seven part-time), frames that Simutek can. second and third. “Typically, our turnaround time is 24 hours,” and either the money or an amount of goods is “If you buy an iPad, it’s the same no matter donated to that employee’s charity.” where you buy it, and I can’t convince you it’s he said. Hope Animal Shelter, LaPosada Academy The education part of Simutek’s business a better product if you buy it from me,” Meindl said. “However, I can convince you to buy at consists of a training model where the staff and several children’s sports teams are some of Simutek because it is a comfortable atmosphere performs one-on-one training on Apple prod- the beneficiaries of Simutek’s donations. In the end, it’s all about the people who walk to shop in with knowledgeable people who take ucts at $25 an hour for in-store training. People can buy a 10-hour block for a discounted $125, in through Simutek’s door. the time to show you how things work. “We want people to enjoy they product they Meindl said his staff provides what he called Meindl noted. Meindl is considering instituting a group purchased and know they have a good com“all-encompassing service” for both customers and for repairs. “We have monthly staff meet- training program, perhaps a small group of a munity of support here,” Scott said. “If they ings about providing the highest level of service half dozen people at $5 each, to train on the ba- buy the product from us, we support them on and how we can always be better. My employ- sic use of one product, whether it be an iPhone, the phone and in person for the lifetime of the ees genuinely put forward their best effort every iPad or Macintosh computer. He’s looking for computer without charging anything extra. We classroom space to make that happen in the give people who purchase from us special conday.” sideration, but treat everyone with an Apple deJohn Scott, sales manager, agreed. “We have near future. The relaxed atmosphere in the Simutek vice who comes to us in the way that we would a lot of repeat customers come in here and they tell us it’s because they feel we give them shop extends to Meindl’s charitable donations want to be treated. Service and support is where excellent service and have a friendly, open at- through Simutek. “Every employee gets to we excel.”

12 JUNE 8, 2012

INSIDE TUCSON BUSINESS

TOURISM TOURISM IN TUCSON

Selling Tucson everyday from the official Visitor Center first taste of our For nearly 10 years I have been working Real Southwest with an inspiring team of people who offer hospitality and visitors to Tucson a variety of services â&#x20AC;&#x201D; genuine enthusifielding inquiries, providing personal asm. More than 30 recommendations and even doing a bit of dedicated volunâ&#x20AC;&#x153;detective workâ&#x20AC;? to find answers to a slew teers contribute of questions. It occurred to me recently that their knowledge what we truly do at the Visitor Center is and passion to the make sales calls. The only difference is that daily operation of we donâ&#x20AC;&#x2122;t leave the building because our ANNE MAXON the Visitor Center, customers come to us. from 9 a.m.-5 p.m. The Metropolitan Tucson Convention Monday through Friday and on weekends and Visitors Bureauâ&#x20AC;&#x2122;s Visitor Center in La our staff of five assists visitors from 9 a.m.-4 Placita Village downtown provides a p.m. Saturdays and Sundays. Thatâ&#x20AC;&#x2122;s 35 sales gracious welcome and personal referrals to tens of thousands of guests each year. It has people selling Tucson and Southern Arizona from the Visitor Center with always been our mission to promote our sincere passion and a local perspective. partner businesses, hotels, attractions, Our sales efforts restaurants or activities in Tucson aare enhanced by BIZ FACTS MTCVB partners and Southern M Visitor Center who understand Arizona. These â&#x20AC;&#x153;sales w callsâ&#x20AC;? are well-crafted ttheir presence in the In La Placita Village Visitor Center is an presentations with V 100 S. Church Ave., southwest corner of features, benefits and iintegral part of Broadway and Church tangible results. eeffective marketing. Open 9 a.m.-5 p.m. Monday through FriObviously not every In assisting over O day, 9 a.m.-4 p.m. Saturday and Sunday visitor is able to 40,000 annual v Got a tourist question? Speak to a Visitor make their way to visitors, the Metrom Information Specialist at (520) 624-1817 politan Tucson eevery partner or email info@visitTucson.org business during their Convention and b Visitors Bureau ttime in Tucson, but because of our relationships with local (MTCVB) Information Specialists at the businesses, we are able to encourage Visitor Center are creating a positive visitors to engage in a multitude of Tucson economic impact for our community by experiences from the convenience of our highlighting the many things to see and downtown location. In doing so, visitors experience in our region. enjoy themselves more and in some cases For many tourists, the Visitor Center is decide to extend their stay resulting in â&#x20AC;&#x201D; their first stop in our community. Itâ&#x20AC;&#x2122;s their

you got it â&#x20AC;&#x201D; increased revenue to our region. Whether itâ&#x20AC;&#x2122;s a couple from Alberta, Canada, staying at Lazy Days RV Park for the winter or a Scottsdale couple on a day trip to our annual Gem, Mineral and Fossil Showcase, we refer and recommend the places that fit their needs and wants. Volunteers and staff support the promotional efforts of the tourism businesses in a variety of ways including direct referrals and providing up-to-the-minute information. One of our greatest sales tools in the attractions arena is the Tucson Attractions Passport. A collaborative effort between the MTCVB and the Southern Arizona Attractions Alliance, the passport to attractions booklet provides discounts to all of our major area attractions. Among all of the outlets selling the passport, the Tucson Visitor Center is No. 1 in sales volume. Visitors are also happy to discover we

carry the only official â&#x20AC;&#x153;Tucsonâ&#x20AC;? branded items found in the community including hats, t-shirts and coffee mugs. Also in our inventory are locally-produced treats that offer a true taste of the Real Southwest â&#x20AC;&#x201D; items including Cherieâ&#x20AC;&#x2122;s Desert Harvest syrups, jams and mixes, the popular Adobe Rose scone mix and, new to the lineup, a prickly pear barbeque sauce from Toddâ&#x20AC;&#x2122;s Restaurant at Ryan Airfield. Our small retail component is not only another way to support our partners, but it helps defray operational costs and provides a lovely memento of Tucson. Next time youâ&#x20AC;&#x2122;re downtown stop by and see what weâ&#x20AC;&#x2122;re all about. It would be lovely to have you!

Contact Anne Maxon, supervisor of the Metropolitan Tucson Convention and Visitors Bureau Visitor Center, at amaxon@visitTucson.org or (520) 770-2142. This monthly column is prepared by the MTCVB.

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InsideTucsonBusiness.com

JUNE 8, 2012

PR CORNER

How public affairs fits into your public relations plan For seven years in the late 1980s and into the mid 90s, I worked in Washington, D.C., part of that time with the venerable Ruder Finn, one of the largest independent PR firms in the nation back in the day. Our office contained the global public relations division and our clients were international, specifically countries having recently emerged from the former Yugoslavia. My accounts included the governments of Croatia and Bosnia-Herzegovina as well as certain interests in Kosovo, fighting, at the time, for independence. I was also responsible for our work with the Croatian National Tourist Board, bringing journalists to the exquisite shores and islands of Croatia’s Adriatic coast and introducing them to some of the best regional food and fine wine – but that’s another story entirely. Our role was to present their positions to Washington-based audiences and positively cast public policy in our clients’ favor. Those audiences included Congress, the administration, media, think-tanks, and the diplomatic corps. While we necessarily had a registered lobbyist on staff, much of our output revolved around strategically communicating our clients’ messages without engaging in direct lobbying. Put another way, we were simply engaged in raising awareness and educating our audiences whose natural habitat was on and around Capitol Hill. We used many of the tools your typical PR professional uses when promoting soap, sushi or Sedona: press releases, media advisories, event management, press conferences (the 104-year-old National Press Club was a favorite venue), speakers’ series, white papers, third party endorsements and outreach, and a host of strategic communications tactics. At the same time, we also employed tactics not always used in your day-to-day PR outreach: Congressional resolutions, one-minute floor speeches and colloquies, Dear Colleague letters, calls and letters to Congress, coalition building and management, public demonstrations, and certain guerrilla tactics which I still cannot fully expound on. But because we were communicating to and educating public policy decision makers (and those who inform public policy decision makers such as think-tanks and the public policy press) our work took on the mantle of what we know as public affairs. Many folks mistakenly think (when they think about it at all) that public affairs is actually direct lobbying or their perception of lobbying: back-room deals in smoke-filled rooms, tickets to Washington Nationals games and plentiful cocktails at The Palm. But simply put, public affairs is

really a subset of public relations; it relates more to the audience than to the campaign or tactics used. It is a communications function which seeks to pursue a change in public JASON MIKO policy, once again, which very well may involve direct lobbying — or even those cocktails — but is not solely reliant upon them. Since we are pursuing changes in policy (as opposed to promoting a person, place or thing), the value of public affairs in public relations depends on how effective we are at changing our audience’s perception, keeping in mind that our audience is a tad different from your standard PR campaign. At the end, as our British friends use the expression, the value we created for our clients paid off in that we were successful in gradually creating a favorable perception among public policy makers toward our clients by using tried, true and time-tested PR tactics. Those same tactics, employed in a campaign for clients at a local level – whether city hall or the state capitol – will produce the successful results your clients want, namely, informing, educating and ultimately changing perception, behavior and public policy. In an atmosphere where legislation and regulation has a direct impact on your business’ profit potential, a public affairs strategy should play an important role as part of your marketing mix. Back in Tucson full-time, and almost 20 years later (including a seven year stint in Macedonia and another seven going back and forth), I’m still involved in the public affairs arena for many of our clients, albeit updated with the powerful tools I did not have back then including the Internet and social media. Our work reaffirms the truth that public affairs is a valuable – and in many cases necessary – component of any campaign, especially when public policy makers are among your target audiences.

Jason Miko is director of account service at Russell Public Communications and serves as honorary consul of the Republic of Macedonia. He is also the internal communications chair and on the board of the Public Relations Society of America, Southern Arizona chapter, who’se members produce this monthly column.

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14 JUNE 8, 2012

INSIDE TUCSON BUSINESS

EXPENSE ACCOUNT MEALS & ENTERTAINMENT

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If you are looking for a creative outlet for your artistic ambitions while enjoying an adult beverage, the newly opened Creative Juice Bar is beckoning. It’s an art studio with a liquor license so you can enjoy a glass of wine or beer while you let your inner artist out. Classes are $35 per person and include your first beverage (non-alcoholic options are available, too), a 16-inch by 20-inch canvas and all the brushes and paint you will need to create your own masterpiece. Classes run about 2½ hours with a featured painting and instructors to help you replicate the artwork. If you prefer to create a custom piece of art, that’s fine too. Kids between 13 and 17 can attend the adult class if they are accompanied by an adult. Creative Juice Bar also offers separate kids classes as well as birthday parties and private functions. A schedule of classes is online. • Creative Juice Bar, 6530 E. Tanque Verde Road, Suite 160, in the La Plaza Shoppes — http://creativejuiceartbar.com/ — (520) 271-5023 or (520) 603-9246

Fleming’s bar a la carte Fleming’s Prime Steakhouse and Wine Bar has created a new bar la carte menu that, as you would assume, is only MICHAEL LURIA available in the bar. It has seven items that are great for sharing or perhaps a smaller dish for one. Choices include house-made burrata, salt and pepper shrimp, prime steakhouse meatballs, filet mignon flatbread, cedarroasted mushrooms, a prime rib melt, and a prime burger. One of the most unique offerings is the burrata, a fresh Italian cheese, served with grape tomatoes, wild arugula and toasted garlic crostinis. If you haven’t had burrata before it’s a fantastic cheese made from mozzarella and cream that’s significantly softer than mozzarella. Burrata means “buttered” in Italian. Even with the new menu, Fleming’s 5

(wines, cocktails or appetizers) for $6 til 7 happy hour menu hasn’t gone anywhere. • Fleming’s Prime Steakhouse and Wine Bar, 6360 N. Campbell Ave. in Paloma Village — www.flemingssteakhouse.com/ — (520) 529-5017

Shane’s BBQfest Shane’s Rib Shack is hosting its first-ever barbecue-fest June 23. The family-friendly restaurant is pulling out all the stops with lots of slow-smoked ribs and free lemonade from an old-fashioned lemonade stand. There also will be live country music, giveaways for the kids and free dessert with the purchase of a combo plate. As part of the fest, there will be three different eating contests where the winners receive a 4th of July party catered by Shane’s. Shane’s started in Atlanta in 2002 and opened its Tucson location last year. • Shane’s Rib Shack, 4500 N. Oracle Road in Tucson Mall — www.shanesribshack.com/ — (520) 887-0790

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

ARTS & ENTERTAINMENT ARTS & CULTURE

Invisible Theatre offers musical magic Invisible Theatre kicks off its 2012 Sizzling Summer Sounds cabaret series next week at the Arizona Inn, 2200 E. Elm St. It’s four consecutive weeks of two different concerts a week — and most of them performed twice. That’s eight concerts of musical magic, if I may borrow their phrase. First up, at 8 p.m. Wednesday and Thursday (June 13 and 14) Liz McMahon, Khris Dodge and Heather Hardy pay tribute to the legendary Patsy Cline. Then at 8 p.m. June 15 and 16 (Friday and Saturday), pianist Richard Glazier performs “From Ragtime to Romance” music of Scott Joplin, George and Ira Gerswhin, blues and jazz of Tin Pan Alley and silent movies’ Silver Screen era. Coming up in subsequent weeks, trombonist Rob Boone and harpist Christine Vivona combine with Betsy Kruse Craig performing love songs June 20; Katherine Byrnes, Julie Anne Boos and Crystal Stark celebrate the great ladies of blues June 21 and 22; Walter Belcher, Jack Neubeck and Mike Padilla pay tribute to the “Rat Pack,” Frank Sinatra, Dean

Martin and Sammy Davis Jr. June 27 and 28; Tony Award nominee Sharon McNight makes her first appearance in Tucson June 29 and 30. Single tickets are $35 with HERB STRATFORD discounts for Invisible Theatre 2012-2013 season ticket holders. Reserve seating also is available for guests dining at the Arizona Inn. Buy tickets online at www.InvisibleTheatre.com or (520) 882-9721. Make a staycation out of it with special cabaret and room offers from the Arizona Inn, call (520) 325-1541.

Art Two new exhibits open June 16 at the Tucson Museum of Art, 140 N. Main Ave. “100 Years 100 Ranchers,” is a show of photographs by Scott T. Baxter of different

Arizona ranchers. The large format black and white images are rich in detail and present a view of a way of life that is mostly unchanged from its earliest days. The second exhibit is “Tucson Collects: Spirit of the West,” which examines the representation of the American West via artwork, cultural items, and other objects. It is drawn from local, private and public collections.

Film It’s fanboy heaven this week for lovers of Ridley Scott’s unique science fiction film vision. His long-awaited return to the “Alien” world arrives with “Prometheus” starring Michael Fassbender, Charlize Theron and Noomi Rapace. Also on tap is the family-friendly animated “Madagascar 3: Europe’s Most Wanted” with returning vocal talent by Chris Rock, Ben Stiller, Jada Pinkett Smith and David Schwimmer.

Contact Herb Stratford at herb@ ArtsandCultureGuy.com. Stratford teaches Arts Management at the University of Arizona. He appears weekly in Inside Tucson Business.

InsideTucsonBusiness.com

JUNE 8, 2012

SMALL BUSINESS

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Summer has arrived, time for Tucson businesses to thrive It wasn’t that many years ago when the summer months in Tucson were perceived to be a time when business slowed to a snail’s pace. The snowbirds were gone, kids were out of school and many businesses would shut down for a month, while everyone took off to San Diego or Rocky Point to escape the heat. I personally feel cheated because I never had the luxury of taking a month off, nor did I ever work for a business that did. I’m beginning to question if that ever really happened or is it just an old fairytale. With the exception of a few well-established professional offices that do take a few weeks off, Tucson businesses are grinding it out during the summer months. It doesn’t have to be a grind, however. You can do more than just survive — you can thrive during the summer months. When I ran the Northern Pima County Chamber of Commerce from 2001-2008, I enjoyed seeing my summer networking events increase in attendance each year. Not only was the chamber growing, but members were also increasing their sales over the previous summer and continuing to raise the bar. Similar to the way a mother lathers up her son or daughter with sunblock before letting the child in the pool, savvy business owners prepare their businesses for the Tucson summer. I reached out to a few of these people who are long time Tucsonans that know how to make it happen for their business during the summer months. Here is what they had to share. Patrick Lopez, president of MPG Automotive Services, which has four locations in the Tucson region, said, “Being consistent with our advertising and marketing during the summer months is critical. Staying top of mind is the goal.” Lopez spends a lot of time educating his customers on what to watch for during this time of year such as what the dry heat does to rubber products on your car, such as tires and hoses, and your car battery. “My industry is still very coupon-driven, so knowing what to offer at what price point is a moving target that I always keep an eye on,” Lopez told me. M.J. Jensen, chief idea officer for

IdeaMagic visionary marketing, said, “My goal is always to increase activity; attend more meetings and mixers, talk to my clients and more social JERRY BUSTAMANTE media activity.” While Jensen’s competitors might slow down, she is determined to outwork them. She also spends a lot of time in and out of her car, so packing an ice chest with fresh veggies and cold water helps her stay hydrated and keeps her energy level up. Ron Janicki, commercial accounts manager for Northwest Exterminating, said he targets businesses that thrive in the summer months. “A business is more likely to spend money when they are making money, so it’s important to know which of my prospects do well in the summer,” he said. Janicki also said that being flexible with your schedule is important. Spending time out in the field during the morning hours and attending mixers in the evenings works well for him and keeps him indoors when the heat is at its peak. Business activity in Tucson can and must thrive during the summer months; payroll still needs to be made. We need to do is reverse the mindset that business in Tucson is lousy during the summer months. A mentor once told me that if you plan for a decrease in business, expect a decrease in business. I encourage Tucson businesses and professionals to keep their foot on the accelerator and stay on their “A” game this summer. Let’s stick a fork in the antiquated mindset and commit to making Tucson a great place to do business year round.

Jerry Bustamante is senior vice president of public policy and oversees the Southern Arizona office of the Arizona Small Business Association, 4811 E. Grant Road, Suite 262, in Crossroads Festival, phone (520) 327-0222.

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16 JUNE 8, 2012

INSIDE TUCSON BUSINESS

CALENDAR SPECIAL EVENTS

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 & 1sttimers, $10 students) REGULAR MEETINGS

Tucson Hispanic Chamber of Commerce Monthly Networking Luncheon

Third Thursday 11:30 a.m. The Manning House 450 W. Paseo Redondo RSVP: www.tucsonhispanicchamber.org. Cost: $25 members, $30 nonmembers Tucson Hispanic Chamber of Commerce Monthly Fiesta Mixer First Thursday 5:30 p.m. Locations vary Information: www.tucsonhispanicchamber.org. Cost: $10 members, $15 nonmembers

Tucson-Mexico Sister Cities Monthly Board Meeting Second Thursday 5:30 p.m. Ward VI ofﬁces, 3202 E. 1st Street Information: (520)250-3901 or http:// tucsonmexicosistercities.org Tucson Presidio Rotary Club Every Wednesday Noon to 1 p.m. Providence Service Corp. 64 E. Broadway Information: Jay McCall, (520) 909-9375 Cost: free, lunch provided

Tucson Utility Contractors Association Second Wednesday 7 to 8 a.m. Locations vary RSVP: (520) 623-0444 Tuesday Morning Business Club Leads and networking Every Tuesday 7 to 8 a.m. The Hungry Fox 4637 E. Broadway RSVP: Mike Ebert (520) 320-9311 www.tucson-networking.com Varsity Clubs of America Midtown Mixer First Tuesday 5 to 7:30 p.m. 3855 E. Speedway RSVP: midtownmixer@excite.com Information: (520) 918-3131 Cost: free, cash bar, menu available Alliance of Construction Trades Third Wednesday 5 to 7 p.m. Hotel Tucson City Center 475 N. Granada Ave. Information: www.actaz.net RSVP: By noon on Monday prior to meeting, (520) 624-3002 Cost: $20 American Society of Training and Development Third Friday (excluding August) 7:30 to 9:30 a.m. Breakfast and professional development meeting El Parador 2744 E. Broadway Information: www.ASTD-Tucson.org Annuity Investment Seminars Common mistakes of annuity owners Every Tuesday 3:30 p.m. Bookmans 6230 E. Speedway Information: (520) 990-0009 Arizona Business Leads of Tucson North Every Wednesday except the ﬁrst Wednesday of the month 7:30 to 9:00 a.m. Mimi’s Café 4420 N. Oracle Road Info and RSVP: jill@ronstadtinsurance.com Arizona Real Estate Investors Association Second Tuesday, 5:30 to 8:30 p.m. Windmill Suites 4250 N. Campbell Road Information: (480) 990-7092 or www.azreia.org Cost: Free, members, $15 nonmembers pre-registered ($20 door)

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Arizona Small Business Association SO/HO (Small Ofﬁce/Home Ofﬁce Community) First and Third Wednesdays 8:15 to 9:30 a.m. ASBA conference center, 4811 E. Grant Road, Suite 262 Information: www.asba.com Cost: Free to ASBA members

InsideTucsonBusiness.com

JUNE 8, 2012

MEDIA

Rentrak Corporation is a better ‘mousetrap’ for taking TV ratings By David Hatfield Inside Tucson Business It didn’t take long after the first crystal receivers got into consumers’ hands more than a century ago before somebody wanted to figure out how many people were using the devices. And thus ratings were born in the late 1920s. Ever since, there’s been an ongoing effort to try find better ways to measure the numbers of TV viewers and radio listeners. The latest entry comes from Rentrak Corporation, a research company based in Portland, Ore., that has more than two decades of experience tracking entertainment usage such as box office statistics and home video. In January 2010, the company started tracking viewership in local TV markets using data collected from set-top boxes of cable and satellite companies. In the Tucson market the data is compiled from more than 15,000 households, primarily Dish Network subscribers. “The industry has been yearning for a better mousetrap; something different not just someone else to measure viewing,” said Steven Walsh, senior vice president of local market television for Rentrak. Always referring to the existing Nielsen ratings company as “the other guys,” Walsh said they are good researchers but his company’s objective is to provide better and more accurate data to TV stations and advertising agencies. One difference is that Rentrak’s data is measuring viewership 24/7, 365 days a year. Nielsen gathers its data from a representative sample of households that are asked to write down what they watch in a diary. In other markets, Nielsen uses a system of meters for national ratings. As of this week, Rentrak is up to 173 client stations in 82 markets across the U.S.

Its Tucson client stations are CBS affiliate KOLD 13, Fox affiliate KMSB 11 and My Network affiliate KTTU 18. Beyond ratings, the Rentrak data can be fully-integrated with databases of auto purchasing information from Polk, political proclivity statistics and purchasing information from Mastercard. Walsh said the data is “rolled up” so that it is kept anonymous. As an example, Walsh explained that it’s one thing for a particular program to get a 20 percent share of the overall viewing, but through Rentrak it’s possible to match that up with Polk data and find out, say, that the show has a 42 percent share against an index of Chevrolet buyers. “Our philosophy is that this brings the advertising eco-system full-circle to be more stable, predictive and more accurate,” Walsh said. Another advantage to the Rentrak system being available every day is that local data is now routinely available outside of Nielsen’s four “sweeps” months. Walsh, a Syracuse Orange fan, used an example of that school but it also applies to Tucson and the University of Arizona. Syracuse got to the Elite Eight in this year’s NCAA Basketball Tournament time but currently there are no ratings taken in March in that market so the local stations looked to the nearest Nielsen metered market, Buffalo, where 9 percent of the market was watching the game. But Walsh said Rentrak data, which is available in all 210 TV markets, showed that 29 percent of TV households in Syracuse were watching the game. Similarly, Tucson stations often look to Phoenix, which is also metered, but now KOLD will be able to see exactly how many Tucson households are watching a UA game and now have to try measure up against Arizona State in Phoenix.

Rentrak numbers So with the Nielsen ratings not due out until later this month, Rentrak numbers indicate KOLD News 13 is taking back the local news ratings crown after what Nielsen reported was a ratings dip in February. Unlike Nielsen ratings where stations focus on 25-54 year-old viewers, the primary demographic for news, these Rentrak numbers are for overall household viewing (the first number is a percentage of the Tucson market’s 442,020 houeholds and the second number is the percentage of households watching TV at the specific time): • 5-6 a.m. Monday - Friday KOLD 13 — 4.0 / 18.4 KVOA 4 — 2.9 / 13.3 KGUN 9 — 2.8 / 12.9 • 6-7 a.m. Monday - Friday KOLD 13 — 5.8 / 17.3 KVOA 4 — 5.6 / 16.5 KGUN 9 — 4.6 / 13.8

• Noon-12:30 p.m. Monday - Friday KVOA 4 — 5.0 / 13.7 KOLD 13 — 4.9 / 13.3 • 4-5 p.m. Monday-Friday KOLD 13 — 5.0 / 13.7 KVOA 4 — 4.3 / 8.9 • 5-5:30 p.m. Monday - Friday KOLD 13 — 7.5 / 13.7 KGUN 9 — 6.8 / 12.4 KVOA 4 — 6.7 / 12.1 • 6-6:30 p.m. Monday - Friday KOLD 13 — 7.2 / 12.3 KGUN 9 — 6.7 / 11.5 KVOA 4 — 6.5 / 11.1 • 10-10:30 p.m. Monday - Friday KOLD 13 — 9.7 / 16.7 KGUN 9 — 6.9 / 11.9 KVOA 4 — 6.4 / 11.0

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

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18 JUNE 8, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Five strategies to help with tax-efficient investing One area of investing that is easy to overlook is the effect of taxes on a portfolio. Yet most investors can improve a portfolio’s bottom line by employing a few simple tax-efficient investment strategies. Higher taxes may be coming your portfolio’s way soon. Unless Congress takes action before the end of the year, federal tax rates on investment income and capital gains are scheduled to rise in 2013. That means it’s time to ask yourself: Are you doing everything possible to improve your portfolio’s bottom line through tax-efficient investing? Here are five tried-and-true strategies to help lower your tax bill while improving your net return. 1. Consider tax-sheltered accounts To encourage Americans to save for retirement, Uncle Sam offers tax incentives in the form of IRAs, 401(k)s, 403(b)s and other qualified retirement savings plans. These accounts provide the opportunity to defer paying tax on contributions and earnings, or to avoid paying taxes altogether on earnings, depending on the type of vehicle you choose. By contributing as much as possible to these accounts, you can realize significant savings over time. For instance, contributing $400 per month to a traditional IRA will save you nearly $22,000 in taxes over 20 years, assuming a 5 percent annual return and 25 percent tax rate. Taxes, however, will be due on distributions at the time you make withdrawals. For 2012, you can contribute up to $5,000 to a traditional or Roth IRA. And if you’re over 50, you can contribute an extra $1,000. For employer-sponsored retirement savings vehicles such as 401(k) or 403(b) plans, you can contribute up to $17,500 in 2012 and an additional $5,500 if you’re over 50. But keep in mind most withdrawals prior to age 59½ from a qualified retirement plan or IRA may be subject to a 10 percent federal penalty in addition to any taxes owed on contributions and accumulated earnings. 2. Turn to municipal bonds In today’s low-rate environment, finding yield can be a challenge. Rates on highquality corporate bonds have hovered at historic lows, and the yield on U.S. Treasuries has not topped 4 percent since 2008. While municipal bonds (“munis”) are no exception, they carry one significant advantage: Interest paid by muni bonds is generally exempt from federal and, in some cases, state and local taxes. Consider this: A municipal bond yielding 4 percent translates to a tax-equivalent yield of 5.33 percent, assuming a 25 percent tax rate. In other words, you would need to earn

5.33 percent on a taxable bond to receive the same after-tax yield as a 4 percent municipal bond. However, any capital gains arising from the sale of municipal bonds are still taxable (at W. DAVID FAY capital gains rates) and income from some municipal bonds may be taxable under alternative minimum tax rules. 3. Avoid short-term gains Before you sell an investment, check to see when you purchased it. If it was less than one year ago, any profit will be considered a short-term gain. If it was more than a year ago, the profit will be considered a long-term gain. That’s important because long-term capital gains are taxed at significantly lower rates than short-term capital gains, especially if you’re in a high tax bracket. • Short-term capital gains are taxed at ordinary income rates which can be as high as 35 percent. • Long-term capital gains are taxed at a maximum rate of just 15 percent for 2012. (This does not take into consideration state or local taxes.) Considering those different rates, it can pay to look at the calendar before you sell a profitable investment. Selling just a day or two early could mean you’ll incur significantly higher taxes. 4. Make the most of losses As most taxpayers know, the IRS lets you use long-term capital losses to offset long-term gains. In any given year, you can minimize your capital gains tax by timing your losses to correspond with gains. What’s more, you can carry forward unused losses to future years, and use them to offset future gains, subject to certain limitations. You can also offset up to $3,000 of unused capital losses per year against ordinary income. So before taking a long-term capital loss, consider the timing of gains as well as ordinary income. 5. Get a professional’s perspective Keeping an eye on taxes is a prudent way to try to enhance your investment returns over time. However, tax laws are complex, subject to change and may have implications you haven’t considered.

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

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

Company Name

Symbol

June 6 May 30 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.04 0.01 13.87 37.33

0.05 0.01 13.21 37.03

-0.01 0.00 0.66 0.30

0.04 0.01 8.35 32.96

0.52 0.10 15.94 39.25

8.64 0.45 1.75 7.64 53.50 6.35 80.68 19.89 54.19 3.79 16.11 27.14 29.76 22.16 26.36 14.29 87.78 37.33 44.84 10.61 67.12 55.74 15.31 33.66 23.19 50.60 54.66 193.99 32.32 57.69 4.52 33.07 29.08 7.27 44.17 21.95 1.33 26.29 27.48 39.53 57.00 37.38 37.55 27.15 42.39 58.59 24.88 8.76 50.68 40.20 18.99 34.39 50.48 6.65 8.80 43.18 29.88 57.50 15.45 28.59 34.86 23.53 110.18 34.81 11.78 29.70 65.93 30.96 30.97 8.26 18.34

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

0.06 -0.01 0.13 0.44 0.94 0.72 1.85 0.69 -1.69 -0.07 -0.14 1.14 0.81 -0.22 -0.56 0.23 1.97 -1.92 -0.49 -1.14 -1.29 -1.89 -1.31 1.25 0.10 0.89 -1.54 -0.54 3.59 1.49 0.38 0.11 -0.79 0.04 -4.65 -0.38 0.20 -0.54 0.49 0.76 0.01 -0.92 -0.73 -2.68 -0.46 -0.25 -2.12 -0.43 0.28 1.03 -0.18 0.62 -1.86 -0.41 -0.08 1.46 -0.29 -0.29 0.75 -0.36 0.36 -0.64 0.32 2.65 -0.92 -1.06 0.49 0.03 -0.73 -0.26 -0.40

8.21 0.20 1.48 4.92 50.95 5.57 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 27.10 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 6.25 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 29.80 22.58 4.44 13.18

16.60 6.17 5.55 11.25 65.79 12.13 82.59 32.85 59.59 7.25 26.29 43.06 30.88 27.63 39.35 14.46 92.10 41.32 46.22 12.25 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 48.31 70.61 43.18 10.82 54.69 46.40 24.28 40.58 85.90 15.52 11.65 43.64 32.79 58.95 22.39 34.24 39.24 25.84 117.40 58.29 13.36 32.98 66.66 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 8, 2012

INSIDE REAL ESTATE & CONSTRUCTION

May residential foreclosure notices spike to 2012 high By Roger Yohem Inside Tucson Business For a fourth consecutive month, residential foreclosure notices were at least double the number of distressed sales. For a market that is slowly gaining stability, May was another month of mixed data from the Pima County Recorder’s Office. In May, foreclosure notices jumped to 984 filings, the highest monthly volume of 2012 (see chart). That pushed the year-todate total 6 percent higher than for the same period of 2011. Actual foreclosure sales plunged 34 percent over the first five months of 2012 compared with 2011. May’s foreclosure filings were 66 more than the prior monthly high of 918 in February. Year-to-date, 4,421 notices have been filed compared to 4,154 for the same yearago period. The comparative monthly averages are now 884 notices for 2012 and 786 notices for 2011. A trustee’s notice is the first step in the foreclosure process. It notifies owners that their property is in default and scheduled to be sold at public auction. Since February, new notices have been issued at more than twice the volume of foreclosure sales. Year-to-date, 2,217 distressed homes have been sold and 4,421 trustee’s sales filed. The monthly sales pace has slipped from 580 in 2011 to 443 currently.

during the quarter. That was 40 percent of all home sales. One year ago, there were 20,867 foreclosure sales, or 43 percent of all closings. In Phoenix, 13,858 foreclosures sold, or 43 percent of all sales. A year ago, 16,226 foreclosures made up 50 percent of all sales.

Worst is over

Credit union for Catalina

On a quarterly basis, statewide foreclosure sales fell 1 percent, an indication the worst may be over in Arizona’s troubled housing market. RealtyTrac, an online database, reported 18,523 distressed homes sold in Arizona

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

TUCSON REAL ESTATE

5/25/2012

5/21/2012

$147,068 4,189 367 355 318

$133,500 4,178 325 421 252

Source: Long Realty Research Center

Notices of Trustee’s Sales Pima County Recorder Foreclosures January February March April May June July August September October November

2007 346 276 305 300 396 377 419 503 394 483 540

December Total Monthly avg.

475 4,814 401

30 YEAR 15 YEAR 3/1 ARM

Current

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

Last Week

6/5/2012

One 12 Month 12 Month Year Ago High Low

3.88% 4.125%APR 3.75% 4.00%APR 4.95% 3.25% 3.375%APR 3.13% 3.25% APR 4.22% 2.88% 3.125%APR 2.88% 3.125% APR

4.95% 4.22%

The above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000 Information provided by Randy Hotchkiss, National Certified Mortgage Consultant (CMC) Hotchkiss Financial, Inc. P.O. Box 43712 Tucson, Arizona 85733 • 520-319-0000 MB #0905432. Rates are subject to change without notice based upon market conditions.

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

923 1,038 876 8,956 12,148 11,663 746 1,015 972

By July, the community of Catalina will have its first credit union. Vantage West Credit Union is about to complete a 2,300 square-foot branch at 16460 N. Oracle Road. The $500,000 project’s general contractor is Dimension Development, 1501 N. 15th Ave. The architect is Swaim Associates, 7350 E. Speedway. Site work began in March and the main subcontractors, all Tucsonbased, include: R.W. Strunk Excavating, Brooks Associates Landscape, Concrete Done with Love, and Major Electric. The Catalina location is Vantage West’s 11th branch in Pima County and 15th branch overall. The new branch will employ about 10 people. Branch vice president and regional manager Jamie Hernandez said Vantage West picked Catalina for its expan-

WEEKLY MORTGAGE RATES Program

2008 699 598 661 700 720 742 721 814 782 921 675

3.75% 3.13%

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

636 9,433 786

2012 705 918 904 910 984

4,421 884

sion “to offer the benefits of credit union services to communities north of Tucson.” With over $1 billion in assets, Vantage West is the largest credit union in Southern Arizona. It’s headquartered at at 2480 N. Arcadia Ave.

Turning the corner For the first time since August 2010, average home prices in every region across the U.S. increased on both a quarterly and yearly basis, according to real estate data analyst Clear Capital. The increases included Tucson, where prices “are gaining ground.” From the first to second quarter, Tucson ranked No. 12 for best-performing market with an average 2.7 percent increase in home prices. And although prices slipped 1.8 percent from 2011, the West region netted average gains of 1.9 percent. Although the gains are minimal, “there are encouraging trends continuing to play out and gaining momentum,” said Alex Villacorta, director of research and analytics at Clear Capital. Phoenix was the nation’s best-performing market in both time frames, recording a 9.4 percent quarterly gain and a 17 percent yearly gain in prices.

Sales and leases • Tucson Dance Academy leased 8,366 square feet at 2850 W. Ina Road, Suite 100, from EJ Sonora Plaza LLC, represented by Craig Finfrock, Commercial Retail Advisors. • El Dorado Internal Medicine leased 5,382 square feet at 1500 N. Wilmot Road from TMC Holdings Inc., represented by Tom Knox and Rick Kleiner, Picor Commercial Real Estate Services. • Sonora Desert Off-Road Center Inc. leased 5,000 square feet at 8500 S. Old Nogales Highway from GRG Properties

LLC, represented by Dave Gallaher, Tucson Industrial Realty. • Arbor E&T LLC leased 4,950 square feet at 655 N. Alvernon Way from Alvernon Place LLC, represented by Andrew Sternberg and Robert Nolan, Oxford Realty Advisors. The tenant was represented by Mark Sergi, UGL Equis. • DSF Express LLC, doing business as Snap Fitness, leased 4,500 square feet at 5095 N. La Canada Blvd., Unit D-5, from 542 Hobart-Arizona LLC and Las Tunas-Arizona LLC, represented by David Hammack, Volk Company Commercial Real Estate. • ADT Security Services leased 3,750 square feet at 305 S. Euclid Ave. from Pascoe Investment, represented by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services. The tenant was represented by Trudy Slepcevic, CBRE. • El Dorado Urgent Care leased 3,217 square feet at 1400 N. Wilmot Road, Suite 110, from TMC Holdings Inc., represented by Rick Kleiner and Tom Knox, Picor Commercial Real Estate Services. • JB Restaurants IV LLC, doing business as Jerry Bob’s restaurant, leased a 3,000-square-foot freestanding building at 16639 N. Oracle Road, Catalina, from Adamo’s Inc., represented by Fred Wang, Fred Wang Brokers. The tenant was represented by Pete Villaescusa and Jesse Peron, CBRE. • Misom Consulting Services leased 2,491 square feet at 3017 W. Ina Road from 3017 W. Ina LLC. The transaction was handled by Andrew Sternberg and Doug Marsh, Oxford Realty Advisors. • Ideal Rehabilitation LLC leased 2,000 square feet at 1020 S. Harrison Road from BSH Investments LLC, represented by Buzz Isaacson and Alan Tanner of CBRE. The tenant was represented by Dave Hammack of the Volk Company. • Cactus Kitchen & Bath LLC leased 1,900 square feet at 252 S. Plumer Ave. from Keller Associates Inc., represented by Paul Hooker of Picor. • Bone Yard Dog Daycare LLC leased 1,860 square feet at 8963 E. Tanque Verde, Suite 191, from Bear Canyon Associates LLC, represented by Pete Villeascusa of CBRE. Michael Gross of Tucson Realty & Trust represented the tenant. • Brown & Caldwell leased 1,311 square feet at 333 E. Wetmore from Aslan III 333 East Wetmore LLC. The transaction was handled by Rick Kleiner and Russell Hall with Picor. • DeEsta LLC leased 996 square feet at 7187 E. Tanque Verde Road from Reseda Colonia LLC, represented by David Hammack of Volk Company Commercial Real Estate. The tenant was represented by Mark Camara of APE Realty.

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

20 JUNE 8, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Politicians should get out of peoples’ lives What is it about Nanny state wannabe politicians who think they always have to come up with policies and processes for how other people should live their lives? Of all the potential ramifications to come from City Councilman Paul Cunningham trying to hit on a city employee at a bar one night while on a Tucson Regional Economic Opportunities (TREO) trip to San Diego last DAVID HATFIELD month, the city council talking about a process to deal with it ranks right down there at the bottom as least important. And yet that was the lede paragraph in the Arizona Daily Star’s initial report of the event. The Star had little option in the matter. Whispers of what had happened were spreading but without firm confirmation or details, the story wasn’t getting out to the public. That was until City Councilwoman Karin Uhlich suggested she thought Cunningham should consider resigning. Hello news desk? We’ve got our story. While the details of what happened that night at the Lodge at Torrey Pines are still not fully public, it appears that Cunningham did something stupid that could possibly be a workforce harassment issue. If that’s the case, shouldn’t the victim or victims be given the courtesy of having a say in how the matter is handled? I’m at the stage in my life where many of my family members in the generation ahead of me have died. A common theme at their services is that they didn’t “have a mean bone in their body” and other sayings like that. I guess that means my family wasn’t particularly judgmental so it surprises me whenever a politician wants to talk about laws, rules or policies that should govern how people should live their lives. I’m of the school that thinks whatever somebody else is doing is OK so long as it doesn’t harm another person. That’s why there are laws against murder and drunk driving. I also get why there are laws against breathing someone else’s secondhand smoke. If whatever Cunningham did rises to the level of a legal matter, there are already laws in place. He shouldn’t have done what he did but the matter will be taken care of in due time. Either Cunningham will take care of it, or voters will. There’s no need for some sanctimonious city council members squandering time trying to institute a process that may never come into play again. Uhlich trying to seize on this situation — because she and Cunningham don’t always agree when they vote — is no different than a Larry Craig, the outspoken anti-gay U.S. senator from Idaho who got caught with his pants down in an airport men’s bathroom. Politicians should set examples but they do that by their actions, not by what they say. In the meantime, they would better serve their constituents if they spent more time working on things to improve peoples’ lives like really doing something about creating jobs and less time interfering with how people live.

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

EDITORIAL

Is it TREO? Or is it just Tucson? Inside Tucson Business has been as big a supporter as any for Tucson Regional Economic Opportunities (TREO). We sponsored one of CEO Joe Snell’s earliest public addresses shortly after his arrival in 2005. Now, sadly, some are suggesting it’s time to reassess whether TREO and its leader have run their courses. The story of Tucson City Councilman Paul Cunningham making an inappropriate comment while on a TREO trip last month has put a spotlight on the organization and its effectiveness — most pointedly on the value of the leadership exchange trips, which in past years have been to Austin, Texas; Portland, Ore.; Albuquerque and Huntsville, Ala. Some might even argue that if Tucson were more like any one of those places — possibly excepting Albuquerque — we wouldn’t need a TREO. But the fact is those other regions have economic development organizations and the best among them know enough never to rest on their laurels. Austin recently launched a 2.0 version of a job creation initiative, Portland last month marked the one-year anniversary of its latest public-private economic development organization, and Huntsville provided a pointed lesson to be learned after snaring Raytheon Missile Systems’ new production plant in 2010 without much of a challenge from Tucson, the company’s headquarters city. People who have been on the TREO trips say they’ve learned something. The agendas are tightly packed. Pima County Administrator Chuck Huckelberry has said some of the components in the county’s plans to development an economic development corridor near Tucson International Airport are a direct result of the TREO trip to Huntsville. In the wake of the Cunningham fiasco, there has been criticism over TREO’s response. We understand that some within the organization felt it wasn’t TREO’s place to publicly comment on what happened because

it was a city issue and any formal complaint would be outside of TREO’s purview. There also have been demands for more financial accountability because TREO is publicly funded but even that has changed. Public funding from government entities has dropped 60 percent from 2005 and more than half of TREO’s revenue now comes from private sector investors. And then there’s Snell’s salary that tops $313,000 a year, more than any other of government official makes — except as noted in the preceding paragraph TREO isn’t solely publicly funded like government. None of this would be an issue if TREO had been able to show more dramatic results as an economic development entity but that little economic recession this nation has been through the past five years hit Tucson especially hard. Now some of TREO’s private investors are losing heart. We talked confidentially to four that are “platinum level” investors and all have either reduced their financial commitment or dropped out. A high-ranking local government official told us that it’s the nature of the beast for economic development executives to either hit home runs or move on and this one expected that Snell would move on. If TREO goes away it will be merely another failure for Tucson economic development organizations following on the heels of the Greater Tucson Economic Council (GTEC) and before that, Pima County Economic Development Council (PCEDC). Perhaps it’s time put economic development back under the Tucson Metro Chamber but even that raises issues. Because the chamber is privately funded, it would remove local governments from their direct responsibility to participate in economic development. Whatever is wrong with TREO, Tucson is running out of excuses when it comes to economic development.

InsideTucsonBusiness.com

JUNE 8, 2012

OPINION BUSINESS INK

California’s business-hostile attitude should benefit Tucson Economic development is an awkward, high-profile news topic in Tucson right now. Most of it is obsessed with the misconduct that allegedly took place during that Tucson Regional Economic Opportunities (TREO) junket to San Diego last month. Not to brush aside the tittle-tattle, since the facts will come out in time, but there are many positives to be gained from a foray to California. Jobs come to mind. Years ago, I helped Tucson Electric Power establish its economic development department. At that time and still today, there is a lot of rhetoric that rips California’s business environment. Due to the state’s harsh business policies and red tape, California is ranked No. 49 among states for its business tax climate. That business-hostile attitude is why I’ve long believed a focused, face-to-face presence in Los Angeles County would pay off with a mother lode of new businesses, jobs and tax revenue for Pima County, Marana and City of Tucson governments. It’s encouraging that officials are trying to temper our city’s anti-business reputation. According to Thumbtack.com, and the Kauffman Foundation, Tucson ranks as the nation’s fourth least business-friendly city. The three worse cities are Sacramento, San Diego and Los Angeles.

California wins the bad-business booby prize. That’s why businesses and investment capital are fleeing California. Reportly the top destinations are Texas, Arizona, ROGER YOHEM Colorado, Nevada, and Utah. But is that just relocation rhetoric? Where is the documentation? It’s in the hands of Joseph Vranich, president of Spectrum Locations Solutions, who specializes in business relocations and tracks the data. Vranich makes his living in Irvine, Calif., near the epicenter of exit-ers. California is “the worst state in the nation to locate a business,” Vranich told me. He estimates companies can cut costs 20 percent just by leaving. Using public documents so bureaucrats cannot spin the facts, Vranich said 254 companies moved some or all of their jobs out of California in 2011. Orange County alone lost 28 companies. Seven went to Texas, three to Mexico, two to Washington and one each to 16 other states. They were big name companiess, such as eBay opting to put 1,000 jobs in

Austin, Texas, instead of near its headquarters in San Jose Landry’s Inc., owner of Bubba Gump Shrimp and Claim Jumper, moved both chains’ headquarters to Houston. Texas took away the Tickets.com call center. And Facebook opted to expand in Oregon rather than Palo Alto, denying the city 200 new jobs. In 2010, the exodus was 204 companies. And already this year, other notable names are bailing. Capital One is closing an 850-employee credit card center in Salinas, Calif., and moving to South Dakota. Although none of his clients have relocated to Southern Arizona, Vranich said Tucson “has a pretty good lifestyle reputation. In initial what-if discussions, Tucson comes up in many conversations. But companies don’t make decisions based on lifestyle.” “We get past the boosterism. Every city says they’re the best. We cut through that, relocations are data driven,” he emphasized. Vranich should know, he is a nationally recognized relocation expert. He doesn’t hold back, citing specific reasons why jobs are leaving California: high taxes, regulatory burden, excessive environmentalism, hostile legal tone, high operating expenses, provable savings elsewhere, failed public policies, uncontrolled public spending, high crime and school dropout rates, and an adversarial attitude.

“Attitude precedes action. The government’s contempt for business is the driving force for their treatment of every kind of business here,” he said. The exodus has trashed California’s budget as tax revenues are collapsing. Tax collections have plunged 11 percent this fiscal year compared to a year-ago. Armed with some facts, it’s true there are economic development opportunities in California for Southern Arizona. It’s not just relocation rhetoric. To get our share, now is the time to act. Of course, that assumes Tucson business and government leaders are serious about job growth. Companies thinking of leaving California in two to three years are making plans now, Vranich said. So here’s a free, unsolicited suggestion for the executives at the Tucson and Marana chambers of commerce: bring Vranich here to headline an economic development forum on relocation. Think how much more effective that would be instead of TREO taking 36 people to San Diego for three days.

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

SPEAKING OUT

Take the pledge: I will prevent and report elder abuse Conclusion of two parts. According to Attorney General Tom Horne’s Taskforce Against Elder Abuse (TASA), the Arizona Adult Protective Services received 9,592 reports of abuse, neglect, or exploitation of vulnerable adults from July 2007 through June 2008. When mistreatment is reported, it gives victims the chance to receive the help they need to stop the abuse and reduce the risk of future abuse. Many older adults are subjected to multiple forms of physical abuse, which are perpetrated in many ways. Loved ones and neighbors may see unexplained bruises, welts, or sores, plus rope or cigarette burns. Psychological and emotional abuse is “infliction of mental pain, anguish, or distress through verbal or non-verbal acts.” The warning signs include fearing to speak for oneself when the caregiver is present. Eating disorders, self medication with alcohol or prescription medications, depression, withdrawal, anger, and low self esteem may be apparent. Sadly, only about 5 percent of elder abuse cases are reported. Any person can report incidents of intentional physical harm and injury, sexual

abuse, or deprivation of basics such as food, water, and shelter. Mistreatment can also come from not providing adequate cooling or heating, medication, or medical services. CAROL WEST If the reporter feels that an emergency exists, it is prudent to call law enforcement by dialing 911. The senior’s welfare will get immediate attention. The caller remains anonymous. It is also important to report suspected illegal or improper use of an incapacitated or vulnerable adult’s financial resources for another’s profit or advantage. Businesses are helping to prevent financial exploitation. If an older person is accompanied to a bank by a stranger who encourages the senior to withdraw large amounts of cash, a bank teller will often question the transaction. Bank officials will also be wary of a senior who co-signs on a loan, or if the bank card statements are no

longer sent to the elderly person. How can elder abuse be prevented? “The most important step is to acknowledge that no one at any age should be the victim of violent, abusive, humiliating, or neglectful treatment.” The American Association of Retired Persons (AARP) offers this advice to older Americans to prevent elder abuse. • Remain sociable and increase networks of friends. • When moving to a new home, still maintain long-time friendships. • Develop a buddy system with someone outside the home and have weekly contacts. • Volunteer or participate in community activities. • Continue a telephone listing; open all personal mail. • Take care of personal needs: doctor, dentist, hair appointments • Get legal advice now about future disabilities, including power of attorney and guardianships. When there is conflict within a family about issues surrounding the care of a loved one, there is Elder Mediation, a cooperative problem solving process with

trained mediators. To learn more, contact www.Elder-MediationAssociates.com or call (520) 395-0602. Pima Council on Aging (PCOA) is developing an “I Will Prevent Elder Abuse Campaign.” Community members can sign a pledge to prevent and report elder abuse and exploitation. This ensures that the community and businesses are better informed about elder abuse. It encourages reporting of any suspected mistreatment of senior adults. Most important- the promise strongly suggests that the signer will treat elders with respect and will educate others. Why should a business sign the pledge? “It is a compelling way to distinguish an enterprise as one that takes an active role in elder abuse prevention.” In a 2009 Arizona State University survey, 70 percent of the public indicated they would patronize a business that had taken the “I will” pledge over one that had not.

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.

22 JUNE 8, 2012

INSIDE TUCSON BUSINESS

OPINION ADVOCATING FOR BUSINESS

Three things we can (must) do to surge ahead Let’s open with a quick environmental scan of our community: • One in five families in Southern Arizona lives below the federal poverty line. • Three in 10 high school students don’t graduate. • A survey of small businesses released in May by the Kauffman Foundation and Thumbtack.com, an online marketplace that matches consumers with professional service providers, ranked Tucson among the bottom five of U.S. cities friendly to business. • Much of the massive intellectual personal power that graduates from the University of Arizona every year goes elsewhere for their careers. • Overgrown weeds and broken streets abound, making it difficult for anyone to feel “community pride.” • A quarter billion dollars earmarked for improving our urban core is mishandled and the parties involved in fixing the problem — the City of Tucson and the Rio Nuevo Multipurpose Facilities District Board — can’t even talk to each other or find common ground. Does anyone really think this is the best we can do? Have we gotten so numb to our circumstances that we have stopped trying

to improve them? Are you sick and tired (as I am) of hearing, “Well, that’s just Tucson”? Of course we can do better. And the recipe is simple: 1. Embrace MIKE VARNEY change. 2. Elect leaders who put improving the overall community over their next re-election campaigns. 3. Convene private sector leaders with elected leaders to create a visionary plan. Then move forward with courage. Ben Franklin said, “When you’re finished changing, you’re finished.” Change is renewal. Change is renaissance. Plants die in the winter and bloom again in the spring. Blight is cleared away and vibrant urban renewal takes its place. Examples of visionary change are legendary: The Baltimore Harbor redevelopment. Silicon Valley. The Oklahoma City Bricktown redevelopment. The Research Triangle in North Carolina. Los Angeles entertainment. Why can’t we be the architects of a

similar future for Tucson and Southern Arizona? Is it a lack of brain power? I suggest that it is a lack of will. Robert F. Kennedy once said, “Change has enemies.” That phrase is a perfect segue to the second part of the trifecta above. Have you noticed how political candidates are long on promises and short on results? Candidates from both parties tell us they have it all figured out when they’re running for office. But once they are elected, an amazing thing happens: leadership morphs into protecting one’s backside. Courage morphs into safety. Minutia rules the agenda and the big, visionary sweeping change the community needs is ignored because “change has enemies.” Award recognition ceremonies, dog adoptions, neighborhood activism and liquor license approvals dominate the agendas with not a word on the status of the master plan to bring about real, meaningful change in the community. As for the third ingredient in the recipe, imagine what could happen if our highest elected leaders got together with the best and brightest from the private sector and the University of Arizona and made a difference? If we ignore the enemies of change, we

InsideTucsonBusiness.com

can get a lot done. What could Tucson’s downtown look like? How far could we go if we started working together on a common vision instead of dusting the walls of our silos? Some say it can’t be done. They’re wrong. Some say big-picture planning has been tried before and didn’t go anywhere. I say that was then and this is now. Regional revival and renaissance is happening across the U.S. Indianapolis. San Antonio and Austin. St. Louis. Spokane, Wash. San Diego. The game has started, folks. It’s not too late to compete. The Tucson Metro Chamber is on board, but we can’t do it by ourselves. So watch this column and other media in the future for more information about vision, leadership and strategies to move Southern Arizona forward.

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

Twitter Followers: 4,056 N Next week’s poll: What should the Tu Tucson region do about the future for ec economic development?

Do you plan to support downtown businesses during streetcar construction? Yes, I’ll make a special effort to get down there.... 57% Yes, but not any more than usual.... 17% No, those businesses can manage on their own.... 27%

Facebook Likes: 2,467 Make the news • Letters to the editor — Opinions on business-related issues or coverage of issues by Inside Tucson Business are encouraged and will be published. Submit letters to the editor via email at editor@azbiz. com. Letters also may be mailed to Letters to the editor, Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087. Letters must include the writer’s name and telephone number. Inside Tucson Business reserves the right to edit and may not print all letters that are received.

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JUNE 8, 2012

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24 JUNE 8, 2012

INSIDE TUCSON BUSINESS

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