Inside Tucson Business 06/22/12 by Territorial Newspapers

AN ADVOCATE FOR ORO VALLEY Chamber CEO focuses on business community PAGE 9

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JUNE 22, 2012 • VOL. 21, NO. 56 • $1

Vineyard ventures Sonora table grapes reach growing market Page 4

Financial institutions seeing stars Banks and credit unions improve ratings Page 6

Get ready for ballot mania

Robert Alcazar

Voters have options in competitive races Page 15

Kenleigh Hobby of EquiSight explains his company’s product at the Arizona Center for Innovation’s Pitch Day.

Resident buys Forty Niner, plans golf course rehabilitation By Patrick McNamara Inside Tucson Business A resident of the east side neighborhood Forty Niner Country Club has purchased his community’s ailing golf course and country club facility. Ronald McKenzie has finalized the deal with San Diego-based company IRI Arizona LLC. IRI is a division of IRI Golf Management, which also owns Arizona National Golf Club; the Golf Club at Vistoso, Oro Valley; and San Ignacio Golf Club, Green Valley. “Everybody here is very, very excited,” said Anthony Mastrangelo, president of the Forty Niner Homeowners Association. He said residents are especially supportive be-

cause McKenzie lives there and has a stake in its long-term success. News of the sale also has prompted residents to begin renewing their country club memberships, Mastrangelo said. McKenzie could not be reached for comment. The most pressing issue continues to be the golf course, much of which under was allowed to fallow and die under IRI. This week, the Tucson City Council unanimously approved a restructuring of debt the golf club owes after the city in 2006 built a seven-mile pipeline from Udall Park to deliver reclaimed water to the course. IRI had agreed to pay $1 million of the cost for the pipeline but the company stopped making those pay-

ments in late 2008, with a remaining balance of more than $327,000. As a result of non-payment the city shut off water delivery to the golf course. McKenzie’s company, MACCO, has agreed to resume making payments to the city. Under the terms of the agreement approved Tuesday (June 19), MACCO will pay $3,162 per month, with 3 percent interest, starting in July and running through June 2022. The city has also resumed delivery of reclaimed water to the golf course as a result of the change of ownership. According to an email McKenzie sent to Forty Niner residents, the club, at 12000 E. Tanque Verde Road, had been losing an estimated

$200,000 annually for several years. In addition, the clubhouse facility had suffered under neglect in recent years. Roofing, electrical and HVAC system work all need to be done to bring the club house into acceptable condition, according to the email. That work would be conducted over the next several months. McKenzie said in the email to residents that he had hired a consultant with a background in golf course maintenance to provide and analysis of the course and prescribe a course of action to bring it back into playable condition.

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

2 JUNE 22, 2012

INSIDE TUCSON BUSINESS

Lesli Pintor

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JUNE 22, 2012

NEWS

Arizona Center for Innovation teaches startups the art of the pitch By Patrick McNamara Inside Tucson Business It was a big day for the startup hopefuls in the room. Pitch Day at the Arizona Center for Innovation, June 15 gave seven fledgling startup companies the chance to present their ideas to a roomful of potential funders. After months, and in some cases years, of research and more time in mentoring, representatives had three minutes to sell their ideas and possibly come out of it with moneyed partners. “We’ve been bootstrapping this company on ourselves and our demo events,” said Kenleigh Hobby of EquiSight. “This was a very positive event for us.” EquiSight developed a helmet-mounted camera for use in horse racing. The images can be transmitted in real time to spectators. EquiSight and the other companies at Pitch Day were among those working with teams of mentors at the Arizona Center for Innovation, which is inside the University of Arizona Science and Technology Park, 9040 S. Rita Road. “We think that having a great idea isn’t enough,” said Joann MacMaster, director of the Arizona Center for Innovation. MacMaster said the fledgling companies benefit from access to the teams of experts and the support they provide. “We’ve seen that having companies here, even for a few hours a week, can really help,” MacMaster. Arizona Center for Innovation works with technology based companies in the early stages of development. Founded in 2003, the business incubator site provides a location for nascent companies to operate from and brings mentoring and training. To date, more than 50 companies have worked with the Arizona Center for Innovation. Hobby said he and others involved with EquiSight spent 12 weeks working with the

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

mentors to m improve their i Arizona Center business plan b For Innovation aand master 9040 S. Rita Road, Ste. 1270 tthe art of the (520) 382-3260 pitch. p azinnovation.com That, and efforts, have begun to payoff. previous efforts Hobby said a member of a venture capitalist group approached him after the presentation. They plan to meet and discuss a possible partnership. In addition, the company’s representatives have been traveling the country to present their product to groups of potential customers or investors. Glenn McCreedy from Breakaway Media was also at Pitch Day, eager to put his company’s e-reader technology in front of an audience. “EBook sales are growing and product placement is a $1 billion industry,” McCreedy said. His company’s eMegaBook would pull advertising in eBooks, which often have hundreds of references to consumer products already in the text. The product also would be able to perform text replacement to maximize the advertising and placement potential. “It went very well,” McCreedy said of the event, adding that he received positive feedback from some of the attendees and potential interest in the product. He said the mentoring services that the center offers startup companies like his has been invaluable. The next step for his company involves putting together a team, continuing market research and to investigate any potential intellectual properties issues. McCreedy also has begun talks with a European technology company about developing a prototype. “To really grow a community, you need to grow your own,” said Tucson Mayor Jonathan Rothschild, who attended the Pitch Day events. Supporting homegrown companies is a BIZ FACTS

better proposition for communities, Rothschild said, because the people involved have a local connection and loyalty. Contrast that to the standard business recruitment efforts that cities like Tucson engage in every day, which Rothschild described as “dog-eat-dog.” “What will really transform this community,” he said, “is when three U of A students create a product and then buy a loft downtown and stay here.”

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

ARIZONA CENTER FOR INNOVATION PITCH DAY COMPANIES AAIR Arizona Algae Integrated Raceway: has a patented technology and system for increased algae production. ArtsyTown: an arts and entertainment marketing company that develops smart phone technologies that connect local artists and musicians with fans. Artsytown.com Breakaway Media: its modular software system eMegaBook places advertisements and product placements in eBooks on multiple devices. www.breakawaymedia.com EquiSight: has developed technology to utilize helmet cameras on horse-race jockeys and other sporting events. www.equisight.com Colloidal Gen, Inc.: is focused on developing products for the biotechnology-life sciences markets for applications in genetic research, molecular diagnostics and bio-sample processing. New Bloom Pharmaceuticals: has developed comprehensive, pharmacist-inspired over-the-counter medical products for people on the go. LBF Partnerships: is developing a platform for online discussion that utilizes new media channels to foster interactive conversations.

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

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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.

Rio Nuevo audit cites unaccounted for costs A new audit commissioned by the Rio Nuevo Multipurpose Facilities Board questions more than $33 million of spending on past projects in the area west of Interstate 10 near downtown Tucson. The audit, conducted by the accounting firm Regier Carr and Monroe, focused on projects during the board’s first incarnation from 2000 to 2010 under the City of Tucson and examined projects including Plaza del Centro, Gadsen Development, Arizona History Museum, Barrio Sin Nombre, Barrio Viejo, Mission/Origins Park, the University of Arizona Science Center and Historical Museum, Mercado Avenue, Mission Landfill and Mission Gardens. The results confirm much of what was found in a 2010 Arizona Auditor General’s audit that found $230 million had been spent by Rio Nuevo with little to show for it.

Newest Rio Nuevo board member is insurance exec Cody Ritchie, president of Crest Insurance Group, is the newest appointee to the board of the Rio Nuevo Multipurpose Facilities District. State House Speaker Andy Tobin, R-Dewey, appointed Ritchie to fill the vacancy left after Jonathan Paton’s resignation to run for the U.S. House of Representatives. Besides his business interest, Cody is a member of the board of the Tucson Metro Chamber. With his appointment, seven of the nine seats on the Rio Nuevo board have been filled.

Barber sworn-in, casts first vote with GOP Surrounded by his extended family, Ron Barber was sworn-in Tuesday to represent Arizona’s Congressional District 8 until the end of the year. He fills out the term of his former boss, U.S. Rep. Gabrielle Giffords, who resigned in January to continue her recovery from being shot in January 2011. In his first Congressional vote, Barber, a Democrat, sided with Republicans voting for a bill that would relax environmental regulations on border patrol agencies within 100 miles of the border. On his second vote, he joined 74 Democrats in a failed effort to reject a bill that would block the Tohono O’odham Nationa from building a casino near Glendale. During his campaign and after being sworn-in, Barber encouraged bipartisanship in Congress.

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

6 7, 8 9 13 14 14

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

17 18 19 20 20 23

4 JUNE 22, 2012

INSIDE TUCSON BUSINESS

NEWS Karl Eller in critical condition after fall Business magnate Karl Eller, for whom the University of Arizona’s Eller College of Management is named, was taken to a hospital where he was listed in cricical condition after falling from his bicycle in San Diego. Eller, who turned 84 on Wednesday, was in a medically induced coma. Eller came to Tucson as a young boy from Illinois with his family. After graduating from the UA he went to Chicago and started a career in advertising, later starting a billboard company and building it into a multimedia firm that included TV stations. After selling the firm, he took over as CEO of Circle K, leaving that company in 1990 and relaunching a billboard company, which is now part of Clear Channel.

Tohono O’odham vow fight for Glendale casino Leaders of the Tohono O’odham Nation are vowing to continue to fight for their right to build a casino near Glendale and University of Phoenix Stadium after the U.S. House of Representatives voted 343-78 Tuesday to approve a bill that would repeal a law allowing the tribe to claim the land as tribal land. Tohono O’odham Nation Chairman Ned Norris Jr. issued a statement to fight it as it moves through the Senate. The bill, introduced in September by U.S. Rep. Trent Franks, R-Ariz., seeks to repeal the 1986 Gila Bend settlement, under which the federal government agreed to let the Tohono O’odham acquire land to replace about 10,000 acres of tribal farmland that was flooded by a federal project.

Tucson unemployment rate jumps to 7.2% About 2,600 more people in the Tucson region were employed in May compared with April but the number of people looking for work grew by 5,700 so the unemployment rate jumped to 7.2 percent from 6.6 percent, according to the Arizona Office of Employment and Population Statistics. The numbers for the Tucson region are not adjusted for seasonality. Tucson’s unemployment rate for May was down from 8.0 percent in May 2011. All of that reduction and more is attributed to 5,000 people who’ve dropped out of the workforce. The number of people with jobs is down by 100 from a year ago. Statewide, the Arizona unemployment rate for May was 8.2 percent, unchanged from April and the same as the national average. Unlike the Tucson unemployment rate, the statewide and national unemployment rates are seasonally adjusted.

World’s appetite for table grapes turns bunches of land in Sonora into vineyards Story and photos by Keith Rosenblum Inside Tucson Business HERMOSILLO, Sonora — ¡Sorpresa! Those grapes you just bought at Safeway, Fry’s, Bashas’ or Albertsons probably haven’t taken the 5,250-mile trip from Chile. It’s quite possible, this time of year, they were on a vine a day or two ago near here, just a three hour drive south from Tucson. The era of the Sonora table grape is at hand and it’s a good bet those Thompson Seedless, Flames, Perlettes, sugarones, red globes or black seedless you’re chomping are from the Caborca or Hermosillo areas. An industry that did not exist 30 years ago now commands respect worldwide. This year, some 16.3 million, 19-pound boxes are being harvested with most coming through the U.S. Port of Entry at Nogales. The season started the first week of May and lasts about nine weeks. Sonora accounts for 90 percent of Mexico’s table grape production. The state exports almost all of its production, dispatching several dozen brands to more than 30 countries. Some 10,000 acres are under cultivation today. That number is only onefourth the total land under grape cultivation in the United States and a fraction of the 190,000 acres harvested by Chile, the world leader. But it is still astonishing for a region that had no presence until the beginning of the 1980s. This year’s anticipated harvest represents an increase of 13 percent over last year. Perlettes were the first variety to appear on the market. Flames, sugarones, red globes, black seedless and other lesser-sought and experimental varieties have followed. As the world’s appetite for grapes switches to seedless, so do the growing patterns of Sonora’s 100 or so producers. Grape production continues to be labor-intensive, but by no means low-tech: Agribusiness consultants from all over the world are in Sonora to work on increasing production, minimizing water use, creating new varieties and opening new markets. Though the lifespan of a vine may exceed 30 years, the typical vine in Sonora is pulled out in less than 15 years because of changes in the industry. The grapes come from Sonora, but the labor in harvesting them does not. The So-

Ricardo Hernandez Roblero does cutting and cleaning at Grupo Agrícola Alta’s Alta Pozo Manuel vineyards in Pesquiera, Sonora, just north of Hermosillo.

nora ventures are controlled by many of the same families who, from the 1950s to the 1970s, produced grains for Mexico’s domestic markets. But it is the work of swarms of laborers from Mexico’s poorer states — as many as 10,000 by estimates — who are actually doing the work. In teams, they measure, cut, pare and place grapes into what are called “clam shells,” attractive and resilient plastic two-pound packages. It is those packages that wind up in corner groceries and warehouse supermarkets in the U.S. Thanks to training that includes on-site workshops in the vineyards, these workers make few errors when it comes to preparing and dispatching. As much as 8 percent of the U.S.-bound harvest did not meet U.S. Department of Agriculture standards a decade ago. Today, that figure is less than 2 percent. (See related story.) Even when grapes are rejected, it is generally for appearance, not safety. Some of the rejected loads are returned to Mexico for sale in the domestic market. Behind the success of the Sonoran table

grape industry is teamwork. The four dozen growers who comprise the Asociación Agrícola Local de Productores de Uva de Mesa (Local Agricultural Producers Association of Table Grapes) collectively produce 2½ times the amount of growers in Southern California’s Coachella Valley. Association members work together on common problems, bringing expertise from Chile, Asia, the U.S. and Israel. The association’s every-other-year conference has now become annual and is now as much a symposium and technical conference as it is a social gathering. “We have had a learning curve for a new industry,” says Juan Alberto Laborín Gómez, president of the 32-year-old association. “Many of the reasons a grape can be rejected are subjective and we didn’t realize that. Is ‘straggly’ to me the same thing as it is to you? Yes, brix (the sugar content of a grape) can be measured, so can diameters of a grape. But what constituted a defect? We didn’t grasp the measurement methodology. Color, scars, shapes. We’d

Correction A list of candidates who have ﬁled to run in this year’s major local and state election races was incomplete in the June 15 issue. A more complete list is in this week’s issue on PAGE 15.

InsideTucsonBusiness.com

JUNE 22, 2012

NEWS

A supervisor offers on-site instruction to workers in vineyards at Grupo Agrícola Alta’s Alta Pozo Manuel Pesquiera, Sonora, just north of Hermosillo.

hear, ‘This is acceptable and that isn’t,’ and we didn’t understand it at first.” Laborin Gómez is a weekly visitor to Nogales, Arizona, to speak with U.S. and Mexican government officials. “I sit down, share my info, go over what we’re doing right or wrong, figure out whether our projections are correct. At least nine government agencies have the right to go through every shipment. FDA, USDA, DHS, DOT, FBI — you name it. U.S. producers don’t have that burden at the beginning of their day.” The Sonora grape growers have a symbiotic and dependent relationship with farmers and buyers in the U.S. “We are in this together,” said Laborin. When Mexico’s government in 1994 Mexico slapped tariffs of 45 percent on the U.S., the association met with federal officials in Mexico and persuaded them to remove the tariffs. “We told them, ‘Please take these tariffs off. They harm the entire industry. I have no need for any conflicts with my friends in the United States’,” Laborin said. It was a telling moment at the association’s conference here in April when an import specialist from the U.S. Department of Homeland Security addressed the group. “I want to welcome you to today’s workshop, “52 easy steps to exporting grapes,” said Armando Goncálvez, who is based in Tucson. The audience laughed, for it was humor rooted in the demanding requirement of Homeland Security and a cross-section of state and federal agencies. “Many of us have learned the hard way,” Laborin said. A glimpse into the Sonora table grape industry is available on a recent morning at Agrícola Alta Pozo Manuel, a vineyard run by Grupo Alta, near Pesquiera, 20 miles north of Hermosillo. Grupo Alta — www.grupoalta.com/en — is producing 700 acres including, in declining order, Thompson seedless, perlettes flame, black seedless, sugarone and red globes varieties. The farm also produces 220 acres of watermelon, 40 acres of mini-watermelons and 40 acres of honeydew. It is almost a scene of symphonic preci-

sion, starting at 7:15 a.m. as some of the 1,000 workers at the ranch await the goahead to cut and box. The workers must wait because the brix level must reach 15.5 before the grapes can be cut. The fields are spotless. Workers at receiving stations sprinkled throughout the farm are packing alreadylabeled (in English) boxes. Grapes come off the vine at temperatures as high as 90 degrees. They are taken to the packing area where they are put in a “pre-cooler” for up to four hours. They are then placed in cold storage at 32 degrees and readied for transport to Nogales in trailers one degree higher. If everything goes well, the trailer makes the trip to Nogales in three hours. If paperwork is in order and the quality acceptable, the crossing into the U.S. should take as little as an hour or two. During the harvest peak, some 25 trailers of grapes will leave here from the Pozo Manuel vineyards. Grupo Alta, like its competitors, pays close attention to harvest dates because production early, or late, may be the difference between an average year and fabulous one. The Pesquiera area harvest already takes place a full month ahead of the harvest near Caborca, 160 miles to the northwest, and 10 days ahead of vineyards Hermosillo and Bahía de Kino, on the Sonora coast. Just how quickly the Sonora table grape industry has grown may be seen through family-owned Agricola Cactus — www.agricactus.com — where the motto is “No hay mejor fertilizante que la huella que deja el zapato en los surcos dia a dia” (“There’s no better fertilizer than the footprint left behind day-to-day in the furrows”). The company started in 1999 with 180 acres of perlette and 80 of sugarone, said Juan Carlos Sierra, son of founder Luis Sierra Maldonado. After four years, it added 80 acres of sugraone, 20 of red globe and 20 of autumn royal. A year later, it planted 40 acres of red globe. In 2008, Agrícola Cactus added another 120 acres to its vineyards and, in 2012, another 40. The vineyard now produces 555 acres and has tripled in size in 13 years. see GRAPES Page 16

Arizona ag officials pare defects to assure no sour grapes from Sonora By Keith Rosenblum Inside Tucson Business HERMOSILLO, Sonora — José Puig and Ed Foster know just what’s at stake — and on the trellises — and that’s why both are revered in the grape vineyards of Sonora. Arizona Department of Agriculture employees — Puig is based in Nogales and Foster in Phoenix — have played key roles in helping grape producers in Arizona’s neighboring state come as close as one might hope to defectfree exports. The two have decidedly unromantic titles. Puig is field operations and training program manager and Foster is assistant director of the citrus, fruit and vegetable standardization division. But the men’s positions have allowed them to reach across the border in just the kind of cooperative venture so often touted and so infrequently practiced. Together, they have helped Sonora’s table-grape industry drastically reduce rejected loads, delays and misunderstandings related to U.S. Department of Agriculture marketing orders and import laws. To understand the importance of the role played by the two, consider the work that has gone into getting a load of grapes to U.S. Customs in Nogales. Grapes have been planted and irrigated for months. Workers have hand-picked, pared and packed bunches into one- and two-pound supermarket cartons, bags or plastic “clamshell” containers into 19-pound transport boxes. Refrigerated trucks carrying 25,000 pounds of grapes at 33 degrees have hauled them 200 miles.

This Week’s

Good News Bienvenidos You want quantitative data about successful ventures of the Metropolitan Tucson Convention and Visitors Bureau? Well, how about this: The MTCVB’s tourism offices in Sonora — one opened five years ago in Hermosillo and a second opened in March in Cuidad Obregón — are on pace to book 8,000 hotel room nights in Tucson this year. The MTCVB took some heat last year in a performance audit done by Pima County for not being able to quanitify the results of its initiatives. The Mexico program wasn’t one of those. In fact, it was lauded as one of the MTCVB’s most successful initiatives. To that, all Tucsonans can say, bienvenidos amigos de sonora.

The Tucson

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

Rain dance for ﬁreworks If you want to see fireworks at Westin La Paloma Resort and Spa and Skyline Country Club on the Fourth of July, you might plan on doing your best rain dance first. As it did last year, Pima County is temporarily banning the use of private fireworks due to the extreme drought conditions but the Board of Supervisors decided to conditionally approve the two professional shows, provided it rains enough to satisfy fire officials at Rural Metro Fire Department who are now charged with signing off on whether the two shows are a go.

El Conquistador still for sale It has been 18 months since Ashford Hospitality Trust put the “for sale” sign out on the Hilton El Conquistador Resort and Country Club but so far no deal, though they’ve come close at least twice. At a meeting of investors and analysts last month David Kimichik, chief financial officer of Ashford, said the real estate investment trust is still actively trying to sell the 428-room Oro Valley resort, which currently has a net operating loss. On the other hand, Ashford CEO Monty Bennett in February told investors, “if we obtain prices that we deem acceptable then we’ll proceed. If not then we will not sell.” Dallas-based Ashford acquired the Hilton El Conquistador for $57.1 million in 2007.

6 JUNE 22, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES

Star ratings upgrade five financial institutions to ‘recommended’

Chapter 11 Business reorganization

Inside Tucson Business

Bradley A. Haber and Debra R. Haber doing business as Sonoita Fuel Stop, 14650 E. Fish Canyon Road, Sonoita. Principal: Bradley A. Haber and Debra R. Haber, joint debtors. Assets: $629,594.25. Liabilities: $999,988.21. Largest creditor(s): Flagstar Bank, Troy, Mich., $397,848.00, and Great Western Bank, Casa Grande, $226,826.00. Case No. 12-13076 ﬁled June 12. Law ﬁrm: Eric Slocum Sparks

Financial institutions in Southern Arizona are continuing to improve their balance sheets with five upgraded to be among those “recommended” by the independent research firm Bauer Financial, which issues quarterly star ratings. One bank and one credit union received the highest five-star rating and two banks and one credit union moved up to four-star status. Bauer Financial defines five stars as “superior” and four stars as “excellent,” both of which it calls recommended. Of the 29 banks and credit unions with a major presence in Southern Arizona, 17 are now considered recommended. The ratings are based on financial data submitted to federal regulators for the quarter ended March 31. The star ratings were issued June 14. The two financial institutions moving to five-star status are Great Western Bank, headquartered in Sioux Falls, S.D., with a branch office at 2955 E. Grant Road, and Tucson-based Vantage West Credit Union, which has 15 locations throughout the state. Four financial institutions continued to receive five-star ratings from Bauer Financial are: Banamex USA, Hughes Federal Credit Union, Pima Federal Credit Union and SunWest Federal Credit Union. The two banks that moved up to four stars are Bank of the West, based in San Francisco, and Mutual of Omaha, based in Omaha, Neb. Phoenix-based Arizona Central Credit Union was the one credit union that was moved up to four stars. Five banks that once again were rated four stars are: Chicago-based BMO Harris, which operates M&I Bank and Harris Private Bank; Tulsa-based BOKF, which operates Bank of Arizona; Tucson-based Bank of Tucson; Minneapolis-based US Bank; and Phoenix-based Western Alliance Bank, which operates Alliance Bank of Arizona. One other bank was upgraded. San Francisco-based Wells Fargo went from 3 to 3½ stars, moving it from “adequate” to “good” in Bauer Financial’s terminology. There were no financial institutions down-graded in the latest quarter. Only one, Tucson Healthcare Affiliates Federal Credit Union, remained in the “problematic” category with two stars and none are considered “troubled.” Statewide, 25.8 percent of banks are “recommended,” which is up from 24.3 percent a year ago but Arizona contin-

Jackie Lee Shettlesworth, also known as Jack L. Shettlesworth, 6609 E. Via Cavalier, Principal: Jackie Lee Shettlesworth, debtor. Assets: $2,218,000.00. Liabilities: $2,769,870.00. Largest creditor(s): Marilyn Velde, $300,000 (contingent unliquidated and disputed); Gary Velde, $300,000 (contingent unliquidated and disputed); Jeffrey Velde, $300,000 (contingent unliquidated and disputed); Kimberly Hardin, $300,000 (contingent unliquidated and disputed); and Walter H. Hill Jr., $270,000.00. Case No. 12-13229 ﬁled June 13. Law ﬁrm: Albert Blankenship Jr.

FORECLOSURE NOTICES SKG Properties LLC Unit 22, Southgate Business Park, 1991 E. Ajo Way 85713 Tax parcel: 132-08-2170 Original Principal: $386,000.00 Beneficiary: BOKF, successor in interest by merger with Bank of Arizona Auction time and date: 10 a.m., Aug. 28, 2012 Trustee: Meredith Marder, Fennemore Craig, 1 S. Church Ave., Suite 1000 SEC Golf Links & Wilmot Investors LLC 6320 E. Golf Links Road and 2753 and 2775 S. Wilmot Road 85730 Tax parcel: 136-26-1290, 136-26-1300 and 136-26-1310 Original Principal: $4,650,000.00 Beneficiary: Labrusca Holding Corporation, Dallas Auction time and date: 10 a.m., Aug. 29, 2012 Trustee: C. Bradley Vynalek, Quarles & Brady, 2 N. Central Ave., Phoenix K&C Consulting Group 1732 S. Oak Park Drive 85710 Tax parcel: 136-05-1180 Original Principal: $105,000.00 Beneficiary: Dennis J. Kelly Family Investments LLC, Anchorage, Alaska Auction time and date: 11 a.m., Sept. 6, 2012 Trustee: Timothy P. Remick, Little Remick Capp & West-Watt, 2601 N. Campbell Ave., Suite 101

LIENS Federal tax liens August Enterprises Inc., 2502 E. Grant Road. Amount owed: $5,496.71. Meadows Enterprises Inc., 1368 W. Roger Road. Amount owed: $1,157.90. Final Finish and Mark S. Miller, 4704 N. Avenida Del Conejo. Amount owed: $10,558.74. Diversiﬁed Warehousing and David Carruthers, 3762 E. Fifth St. Amount owed: $12,764.12. Old Pueblo Dental Ceramics Inc., 9800 E. Martin Drive. Amount owed: $17,881.41. Red Ant Inc., PO Box 1508, Sahuarita 85629. Amount owed: $3,671.34. 4-Rios Construction, 5609 E. 24th St. Amount owed: $4,813.48. TICICO LLC and Cindy Cox, PO Box 90244, 85752. Amount owed: $47,905.85. R.J.&J. LLC, 3081 W. Idaho St. Amount owed: $5,000.14. Tucson Fleet Transmission & Transaxle Exchange Corp., 2208 N. Stone Ave. Amount owed: $1,418.67. Dan Hubbard & Sons Painting Contractor Inc., 9750 S. Nogales Highway. Amount owed: $18,026.46. Tag Elementary Inc., 10129 E. Speedway. Amount owed: $117,720.94.

BANKS Star Rating (3/31/12)

Star Rating (12/31/11)

Headquarters city

Average tangible assets as of March 31

Average tangible assets at end of 2011

First Quarter 2012 Net Income

Fourth Quarter 2011 Net Income

2011 Net Income

Nonperforming Assets % Total

Alliance Bank of Arizona (Western Alliance Bank)

Phoenix

$2.22 billion

$2.13 billion

$9.8 million

$5.6 million

$19.8 million

0.9%

Banamex USA

Century City, Calif.

$1.41 billion

$1.34 billion

-$2.1 million

$705,000

$4.8 million

0.3%

Bank

Bank of America

Charlotte, NC

$1.384 trillion

$1.385 trillion

$3.21 billion

$2.51 billion

$9.64 billion

4.7%

Bank of Arizona (BOKF)

Tulsa, Okla.

$24.97 billion

$24.98 billion

$82.3 million

$60.3 million

$276.8 million

1.8%

Bank of Tucson

Tucson

$281.0 million

$285.1 million

$239,000

$747,000

$2.1 million

1.4%

Bank of the West

San Francisco

$58.62 billion

$57.74 billion $128.1 million

$107.1 million

$442.0 million

1.8%

BBVA Compass

Birmingham, Ala.

$59.10 billion

$59.23 billion $125.8 million

-$1.94 billion

-$1.71 billion

2.8%

BMO Harris (M&I Marshall & Ilsley Bank, Harris Bank)

Chicago

$89.75 billion

$89.08 billion $100.5 million

$215.9 million

$337.4 million

2.6%

Canyon Community Bank

Tucson

$89.7 million

$87.6 million

-$133,000

-$561,000

-$1.3 million

3.4%

Commerce Bank of Arizona

Tucson

$261.6 million

$271.5 million

-$143,000

-$1.1 million

-$1.4 million

5.9%

Great Western Bank

Sioux Falls, SD

JPMorgan Chase Bank

New York

$7.71 billion

$7.47 billion

$18.4 million

$62.2 million

4.0%

$1.776 trillion

$1.789 trillion

$3.67 billion

$2.59 billion

$12.46 billion

2.1% 1.8%

Mutual of Omaha Bank

Omaha, Neb.

$5.65 billion

$5.32 billion

$10.4 million

$12.4 million

$44.6 million

National Bank of Arizona

Tucson

$4.42 billion

$4.39 billion

$3.3 million

$8.8 million

$25.5 million

3.0%

Northern Trust

Chicago

$94.22 billion

$97.07 billion $189.7 million

$225.6 million

$571.0 million

0.3% 2.7%

U S Bank

Minneapolis

$314.83 billion

$309.19 billion

$1.30 billion

$1.35 billion

$4.72 billion

Washington Federal

Seattle

$13.31 billion

$13.22 billion

$34.2 million

$33.6 million

$120.6 million

2.6%

Wells Fargo Bank

San Francisco

$1.117 trillion

$1.115 trillion

$3.77 billion

$3.45 billion

$13.06 billion

4.6%

Source: Bauer Financial Inc., www.bauerﬁnancial.com Average Tangible Assets: Total average assets less intangible assets Nonperforming assets as a % of Tangible Assets: Loans past due 90 days or more (60 days for credit unions) + nonaccrual loans + other real estate owned (primarily repossessions) as a percent of tangible assets

CREDIT UNIONS Star Rating Star Rating (3/31/12) (12/31/11)

Credit Union

Headquarters city

Assets (3/31/2012)

Assets (12/31/2011)

First Quarter 2012 Net Income

Fourth Quarter 2011 Net Income

2011 Net Income

Nonperforming Assets % Total

Arizona Central Credit Union

Phoenix

$403.4 million

$395.4 million

$837,000

$769,000

$901,000

1.1%

Arizona State Credit Union

Phoenix

$1.35 billion

$1.30 billion

$3.2 million

$2.9 million

$8.3 million

2.0%

Desert Schools Federal Credit Union

Phoenix

$3.08 billion

$2.90 billion

$10.1 million

$3.5 million

$23.3 million

3.7%

Hughes Federal Credit Union

Tucson

$611.6 million

$559.3 million

$1.6 million

$1.2 million

$2.3 million

0.3%

Pima Federal Credit Union

Tucson

$382.9 million

$357.5 million

$809,000

$1.2 million

$2.9 million

0.1%

Pyramid Federal Credit Union *

Tucson

$117.7 million

$81.7 million

$172,000

$53,000

$55,000

1.6%

SunWest Federal Credit Union

Phoenix

$257.6 million

$247.9 million

$745,000

$915,000

$2.0 million

0.8%

Tucson Federal Credit Union

Tucson

$345.1 million

$318.0 million

$1.3 million

$1.7 million

$2.5 million

1.3%

Tucson Healthcare Aﬃliates Federal Credit Union

Tucson

$15.5 million

$133.5 million

-$38,000

-$88,000

-$23,000

1.0%

Tucson Old Pueblo Credit Union

Tucson

$136.6 million

$29.5 million

-$288,000

$69,000

$1.4 million

1.8%

Vantage West Credit Union

Tucson

$1.17 billion

$1.12 billion

$2.8 million

$4.4 million

$13.3 million

1.2%

Source: Bauer Financial Inc., www.bauerﬁnancial.com * As of January 2012, Tucson Telco Federal Credit Union and Southern Arizona Communications Credit Union were merged into Pyramid Federal Credit Union.

ues to have the lowest percentage of recommended banks of any state. Florida has the second lowest percentage at 30.8 percent. Bauer Financial puts 69.6 percent of Arizona credit unions in its recommended category. At the other end of the scale, the percentage of banks moving out of “troubled” or “problematic” ratings improved to 25.8 percent in the first quarter from 40.5 percent in the first quarter of 2011. Only 6.5 percent of Arizona credit unions were rated in Bauer Financial’s lowest categories, an improvement from 21.6 percent a year ago. Based in Coral Gables, Fla., Bauer Financial has been issuing its star ratings since 1983.

KEY Bauer Financial, Coral Gables, Fla., an independent research firm, compiles data on financial institutions and issues quarterly star rankings of them. The latest information is compiled from data filed with federal regulators for the quarter ended March 31, 2012. The report was issued June 14, 2012.

Superior Excellent ½ Good Adequate Problematic Troubled Zero Lowest rating

InsideTucsonBusiness.com

JUNE 22, 2012

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INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

JUNE 22, 2012

PROFILE

Oro Valley chamber CEO has natural nose for business By Alan M. Petrillo Inside Tucson Business

BIZ FACTS B

Greater Oro Valley Chamber of Commerce 7435 N. Oracle Road, Suite 107 www.the-chamber.com/ (under construction) (520) 297-2191

Alex Demeroutis

Dave Perry has a journalist’s curiosity and a natural nose for news that he puts to fine use ferreting out opportunities for business as the president and chief executive officer of the Greater Oro Valley Chamber of Commerce. Perry, who was the editor and publisher of the Explorer weekly newspaper from late 2007 until the end of 2010, is no stranger to business news and its associated activities, and believes his background as a reporter and editor has helped in his current position by allowing him to keep people informed on what’s happening (or not occurring) in the town, enlisting support for projects and programs and garnering backing for increasing economic development activity in Oro Valley. That name of the Oro Valley chamber is different than when Perry took the top job in March 2011. Originally founded in November 1992 as the Greater Oro Valley Chamber of Commerce, it changed its name in 1998 to Northern Pima County Chamber of Commerce in an effort to expand its reach and represent other businesses in unincorporated Pima County north of the city of Tucson. But this year, the board of directors decided to go back to the chamber’s roots and take up the organization’s original identity and to make a commitment to helping develop economic activity in Oro Valley. “By making this change, the chamber is more clearly defining its identity, brand and service area,” Perry said. “We are focusing on the community where more than half our members reside. This is who we are, who we serve, what we represent and where we are relevant and have influence.” The chamber, which has 425 active members, has located its offices at 7435 N. Oracle Road, Suite 107, in the Sun Center. Currently the offices are outside the town limits but it’s part of an area Oro Valley is pursuing for annexation. Perry, who came to the Tucson region in 2007 from the Rawlins Daily Times in Wyoming where he was publisher and editor, also served in editorial posts at four other newspapers in Wyoming. Perry sees the Greater Oro Valley Chamber as being a mediating influence on business issues in the community. “Fry’s was looking to put in a gas station at its store on the northeast corner of Lambert and La Canada roads and they have a right to do that, but some neighbors had concerns about traffic, lights and noise,” Perry said. “While Fry’s is not one of our members, we communicated with them about the issue because we wanted to see a good result where everyone’s interest is heard. We think that will happen, where jobs will be created in the community because it will give Fry’s a stronger anchor

Dave Perry, president and CEO of the Oro Valley Chamber of Commerce.

at that location.” Perry pointed out that the sign code has been a long-time major issue in Oro Valley. He said temporary relief on A-frame signs the chamber advocated for is a positive for businesses in the town. “It’s a small, yet legitimate success in promoting business in the town,” he said. Perry wants to help major businesses too, such as Roche Group’s Ventana Medical Systems, the largest employer in Oro Valley. “We could help them with recruitment,” he said. “We have materials, contacts and can get prospective employees in touch with real estate people and schools to make their transition to the area easier. We want to do more of that kind of thing and be an asset and a resource for businesses in our community.” Perry also is pursuing formal designation by the state of Arizona as a tourism information center. He wants his chamber to be the place where tourists go for information about the Oro Valley area. “It takes a year to get that designation, but once we do, we can receive information from tourist areas from all over Arizona, get tourist signage placed along our highways, and become more visible to and get more of the traveling public to come to Oro Valley,” he said. Perry thinks the most appealing part of his job is in helping members, whether its with a specific problem, or by putting on a workshop, or representing their interests in attracting more business to the town.

While Perry had to focus on short term stabilization of membership when he first came to the job of president and CEO, he’s been successful in solidifying the membership base and keeping the organization on track financially. “Now we’re looking at how we can improve what we do for the community,” Perry said. “We are discussing with the town a $25,000 financial participation agreement

where we would provide the government access to our events, which includes four educational forums a year to discuss business issues of the day, as well as our ability to promote Oro Valley more intensively.” After noting there are nine chambers of commerce in the Tucson region, Perry said, “We want to be the go-to chamber in our piece of the world. We have a unique role to play and we’ll focus that role on Oro Valley.”

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10 JUNE 22, 2012

INSIDE TUCSON BUSINESS

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There are missed opportunities that could lead to improved airline service at Tucson International Airport and Jamie Kogutek is on the case to make sure airline executives know about them. Whether it’s false impressions, something that was overlooked or opportunities nobody realized existed, Kogutek says they’re out there. Kogutek is an air service strategy and development consultant with Sixel Consulting Group who has been hired by the Tucson Airport Authority, which operates the airport. He essentially replaces Alex Kovach, who had been the authority’s in-house director of air service development for 10 years until he retired in March. Kogutek brings with him knowledge of the inner workings of airline scheduling, working for almost six years until March 2011 as senior manager for strategic planning and scheduling at AirTran Airways, which is in the process of merging with Southwest Airlines. Before that he worked more than eight years in Tempe as senior analyst for schedule planning at America West Airlines before it merged with US Airways in 2005. He’s currently based in Orlando, Fla., although Sixel Consulting is headquartered in Eugene, Ore., and has eight offices in North America. As someone who already had some familiarity with Tucson from his days with America West — and coming to Tucson to see the Arizona Diamondbacks in Spring Training — Kogutek talks about aligning Tucson’s air service needs with what airlines want to be successful. An opportunity he puts at the top of his list is fighting a stereotype among airline executives that Tucson is a leisure destination, with passengers who are focused solely on getting the lowest fare as opposed to business travelers who are willing to pay for convenience and sought after by airlines. “That’s why there are some of those gaps,” Kogutek said in an interview. “The airline doesn’t know the whole Tucson business story.” In meetings with airline executives at a national conference this month, Kogutek said he talked specifically about the burgeoning business activity surrounding Ford’s assembly plant and aerospace companies near Hermosillo and expansion of the the port of Guaymas then connecting that back to Tucson as an “economic region without a border.” It’s an argument he said airline officials hadn’t heard presented quite that way before. Kogutek also praised the formative discussions at the Tucson Metro Chamber to have businesses somehow incentivize airlines, saying, “it’s part of the game” these

days. How an incentive might work has yet to be determined but it could take the form of a business guaranteeing to buy a certain number of tickets from an airline starting a new route or some other financial inducement. “We’re in a competitive environment where airlines are as risk averse as they’ve ever been,” he said. “Fuel prices and the uncertain economy create lots of risk but with consolidation (of the airline industry), airlines don’t have to take as many risks as they used to so they’ll look at a situation where the business community has skin in the game.” And if Tucson doesn’t come up with financial incentives, other regions will and not necessarily a nearby. “It takes about three hours to fly from Minneapolis, for example, to Tucson, which is about the same amount of time it takes to fly from Minneapolis to Florida. For an airline executive it’s a viable trade-off to fly that asset (plane) to Florida if there’s an incentive. That’s why programs like these are so important,” Kogutek said. In the meantime Kogutek said he is working to compile data on the Tucson air market. One of those deals with the issue of “leakage” — people who live in the Tucson region but who fly out of Phoenix. Sixel Consulting looks at it from the opposite view, calling its re-

search a True Market Study. Kogutek says leakage studies have found that about 30 percent of the Tucson market flies out of Phoenix. “When we study the situation we look at the fact that we retain 70 percent of the market and we certainly can look to go beyond that number,” Kogutek said. “It’s about defining demand for Tucson air travelers regardless of what airport they use and then enticing them to our airport.” A surprising piece of research he’s already come across is that some people drive to Phoenix to catch flights to San Diego and Las Vegas, not because it saves them money — or time, necessarily — but because there are more flight choices. In other cases he said passengers from Tucson are paying more to fly out of Phoenix for the convenience of a non-stop flight to their destination. Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Business Travel appears the fourth week of each month in Inside Tucson Business.

TUCSON INTERNATIONAL AIRPORT MAY 2012 PASSENGER STATISTICS May passenger traffic through Tucson International Airport was down 3.1 percent, reversing a three-month trend of increased monthly passenger totals over 2011. Year-to-date the total passenger count remain up 0.9 percent.over 2011. This chart shows each airlines’ passenger totals and market share for May 2012 compared with May 2011 and the totals for the first five months of both years.

Airline

May 2012 May 2011 Change Passengers Market Passengers Market Passengers % Share

Nonstop destinations

Southwest

109,045

34.7%

107,604 33.2%

+1,441

+1.3%

71,797 22.1%

+5,128

+7.1%

43,623 13.4%

+2,500

+5.7%

11.5%

37,821 11.7%

-1,539

-4.1%

32,499

10.2%

37,625 11.8%

-5,126

-13.6%

8,851

2.8%

8,771

2.7%

+80

+0.9%

2,884

0.9%

14,122

4.4%

-11,231

-79.6%

-10,075

-3.1%

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

American

76,925

24.5%

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

United (Continental)

46,123

14.7%

Denver, Houston Intercontinental, Los Angeles, San Francisco

Delta

36,282

Atlanta, Minneapolis-St. Paul, Salt Lake City

US Airways Phoenix

Alaska Seattle

Frontier

Denver (service suspended from May 18-Nov. 14)

Monthly Total

314,261

Year-to-date 1,592,026

324,336

1,577,252

+14,774 +0.9%

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

InsideTucsonBusiness.com

JUNE 22, 2012

SOCIAL MEDIA SOCIAL MEDIA IN THE WORKPLACE

More social media workplace policies found to be too broad The Office of the General Counsel for the National Labor Relations Board issued a new report May 30 providing additional guidance about what types of employer work rules, including social media policies, it considers overly broad and therefore in violation of the National Labor Relations Act. The report also gives examples of permissible workplace conduct policy language and even reprints an entire social media policy the board found lawful. Under the National Labor Relations Act, concerted activity that involves the terms and conditions of employment is protected regardless of whether it occurs via social media. Employers may not interfere with, restrain or coerce employees in the exercise of protected activity through discipline, termination, or other restrictive action. The National Labor Relations Board’s two previous reports, issued in August 2011 and January 2012, provided guidance about what social media conduct employers may lawfully restrict without running afoul of the National Labor Relations Act’s prohibition on interfering with protected concerted activity. The board also advised, through its reports, that overly broad workplace

conduct policies that would “reasonably tend to chill employees in the exercise of their (protected) rights,” violate the act. A workplace rule can be overly broad simply because an SHERRY DOWNER employee could reasonably construe the language to prohibit protected activity. The board has found a number of common workplace rules overly broad and therefore in violation of the National Labor Relations Act. The board’s most recent report emphasizes two points: 1. Context, examples and other policy limitations can make or break a policy. • The board found a provision stating “harassment, bullying, discrimination, or retaliation that would not be permissible in the workplace is not permissible between co-workers online, even if it is done after hours, from home and on home comput-

ers” was lawful because of the context which contained a list of plainly egregious conduct such as bullying and discrimination. • A rule prohibiting “negative conversations” about managers that was contained in a list of policies regarding working conditions with no further clarification or examples was, according to the board, unlawful, while a rule forbidding “statements which are slanderous or detrimental to the company” that appeared on a list of prohibited conduct including sexual or racial harassment and sabotage was permissible. • The board considers the use of the terms “confidential or proprietary” in workplace conduct policies prohibiting employees from posting (or discussing) such information overbroad unless the scope is narrowed to exclude protected activity — for example, information regarding the terms and conditions of employment. 2. A “savings clause” may not save a policy unless it clearly explains to a layperson what types of protected

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concerted activity is permitted. A “savings clause” (disclaimer) stating the policy “will not be construed or applied in a manner that improperly interferes with employees’ rights under the National Labor Relations Act” was found by the board to be insufficient to cure otherwise unlawful social media policy provisions “because employees would not understand from this disclaimer that protected activities are in fact permitted.” Also a savings clause that stated the policy “will not be interpreted or applied in a way that would interfere with the rights of employees to self organize, form, join or assist labor organizations, to bargain collectively through representatives of their own choosing, or to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection or to refrain from engaging in such activities,” was found by the board to be inadequate to save a policy that prohibited employees from expressing their personal opinions to the public regarding “the workplace, work satisfaction or dissatisfaction, wages hours or work conditions” because the clause did not explain to a layperson what the right to engage in “concerted activity” entails. Employers will want to review and revise their workplace conduct and social media policies to ensure they are not overly broad in light of this new guidance, and make sure that any savings clause is properly drafted to adequately inform a layperson as to what protected concerted activity is permitted.

Contact Sherry Downer, an attorney with Fennemore Craig practicing in the areas of employment and labor law, commercial and business litigation, and professional liability, at sdowner@fclaw.com.

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12 JUNE 22, 2012

INSIDE TUCSON BUSINESS

GOOD BUSINESS WOMEN IN BUSINESS

Could crowdfunding help find investors for your business? One of the key chapters of the recently passed Jumpstart Our Businesses (JOBS) Act was the CROWDFUND (Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure) Act provisions. Crowfunding allows small companies to sell equity stakes online to large numbers of investors. Small businesses would be able to raise up to $1 million per 12-month period without facing the regulations that govern larger equity offerings. Currently, the Securities and Exchange Commission (SEC) has until Dec. 31 to issue final regulations and when in place, the crowfunding process will be easier. There are still nuances for companies to weigh before deciding whether to make an offer. Here are some of the factors to consider:

1. What is crowdfunding? Crowdfunding is based on the idea of

many individuals making small contributions to enable a larger project. Current crowdfunding platforms are popular with creative types such as authors, musicians, artists, LORRAINE HARRINGTON inventors and programmers - who want to create a new product but are not eligible for traditional funding channels. The creators have a certain amount of time to collect donations; if they do not collect a minimum level of funds, the money is returned to the backers. Backers do not receive any financial stake in the company, but may receive incentives such as a copy of the album they funded.

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2. Choosing an investment portal Under the JOBS Act, corporate crowdfunding would need to be conducted through a licensed funding portal. Some established crowdfunding sites, such as Kickstarter, Indiegogo, WeFunder and Microventures have refused to make any comments to media outlets on the JOBS Act until the SEC regulations are published. One portal, SecondMarket, has already stated it will not be seeking SEC approval. Another company, Crowdfunder, is an active backer of the JOBS Act; their business model is illegal until the legislation activates. Before selecting a portal, a business will need to diligently conduct a search for the best licensed funding portal. Business owners will want to ensure that the portal has complied with SEC regulations and have systems in place to securely handle investors’ financial information. The funding portal will need to perform duties, including providing investors with risk disclosures, conducting background checks on a company’s principals and filing reports with the SEC.

3. Finding investors Once a licensed funding portal has been selected and the system is in place, shares will then be offered. Who can buy shares? Crowd offerings are open to an unlimited number people of any wealth level. The maximum amount that can be contributed by an investor depends on the individual’s annual income or net worth; 5 percent or a maximum of $2,000 if income is less than $100,000 per year or 10 percent of annual income if net worth is greater than $100,000 per year. Any securities purchased must be held for a minimum of one

year, unless returned to the issuer or sold to a SEC-accredited investor. It is not yet established if entities such as companies and LLCs, will be eligible to purchase. Companies can raise up to $1 million per 12-month period. When beginning a crowdfunding project, companies may look to friends and family or current clients, vendors and suppliers who are already familiar with the company and their products. Keep in mind that current laws require investors to be provided with all information necessary to make an informed investment decision – including annual reports and income statements. Before reaching out to your social circle, clients or vendors, consider whether you are comfortable with your investors knowing your company’s detailed financial position. One final consideration, just as in the stock market, you do not have control over who purchases equity shares through a crowdfunding project. In addition to vendors or suppliers accessing your financial information, anyone could access this data. What if a competitor places a minimum investment to obtain insider information on your company? These questions may be addressed once the SEC regulations are issued, but should be considered by any company before creating a crowdfunding offer.

Contact Lorraine Harrington, a business and estate planning attorney whose law firm counsels companies on formation, operation and funding matters, at lharrington@lorraineharringtonlaw.com or (520) 202-7314. Harrington is a member of the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO), whose members contribute this monthly column.

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InsideTucsonBusiness.com

JUNE 22, 2012

MEDIA

KVOA GM Shaw is skeptical about new Rentrak ratings By David Hatfield Inside Tucson Business Count Bill Shaw, president and general manager of KVOA 4, as a skeptic about the new Rentrak ratings TV system I wrote about two weeks ago. While it may be an OK research tool, he says the numbers could be misleading to advertisers who try to use it because of the different methodology. Among the problems: • Although Rentrak’s sample size in the Tucson market is larger (15,000) than the sample size used by Nielsen, it measures set top box usage, including multiple sets in a single household that may all be tuned to the same show, which often happens when there’s a big sporting event or special being shown. • Rentrak only measures that a set top box is on, even if the TV set itself is off or the viewer has fallen asleep, which benefits the 10 p.m. news on the station that had the most popular prime shows. • All of Rentrak’s numbers come from Dish Network subscribers, who aren’t representative of the market as a whole and accentuates viewing in Santa Cruz and Cochise counties, where satellite subscribers account for 69 and 58 percent respectively, of TV households, versus Pima County that has 36 percent satellite subscribers. On deadline I caught up with Steve Walsh, senior vice president for local market television sales at Rentrak, as he was traveling and the airline was asking passengers to turn off their electronic devices. He said he could defend the Rentrak system more fully but most importantly he wanted to make the point that Rentrak’s thousands of participants are weighted demographically by zip code and that, unlike a diary system, Rentrak system doesn’t have non-response issues. It should be noted that KVOA is not a subscriber to Rentrak and judging by Shaw’s reaction, they’re not going to get in line quickly. In the meantime, the latest Nielsen ratings are out next week, so we can compare the two results. Stay tuned.

Pac 12 Network As expected, the Pac 12 Networks released the conference’s basic football schedules for TV and all games will be covered live but contrary to what I was led to believe earlier, not all viewers will get to see all games live.

For instance, the second week of the season, the University of Arizona Wildcats will host Oklahoma State in a game that will be carried by the Pac 12 Networks starting at 7:30 p.m. Sept. 8. At the same time, the Pac 12 Networks will also be covering the Duke at Stanford game, also live. Presumably Arizona viewers will see the Arizona game and viewers in the San Francisco Bay Area will see the Stanford game but what about viewers watching the Pac 12 Network in Southern California, Oregon, Washington, Colorado-Utah or the national network? That’s a decision the Pac 12 says will be made later. Another conflict comes up a week later when the UA hosts South Carolina State at 7:30 p.m. Sept. 15 at the same time UCLA hosts Houston. There won’t be any such dilemma the following week when the Wildcats play their first road game in Eugene against the Oregon Ducks. It already has been decided the Sept. 22 game will be picked up by ESPN, although it could be shown on ABC (KGUN 9) or ESPN2. Game time will be announced either 12 or six days ahead of time. So far, TV coverage for only two other Wildcats football games has been determined. The season opener at home against Toledo at 7:30 p.m. Sept. 1 will be on ESPNU and the Arizona-ASU game at 8 p.m. Nov. 23, the day after Thanksgiving, will be shown live from Arizona Stadium at 8 p.m. on ESPN. Otherwise, TV coverage for the rest of the Wildcats football season will be determined 12 or six days ahead of the games. It looks as if the schedule is set up to avoid the Pac 12 Network facing a direct time conflict between Arizona and ASU games, though there could be conflicts with other conference games. A couple of other updates on the Pac 12 Network: • Comcast will carry the new Arizona Pac 12 Network on channel 103 in standard defintion and channel 598 in high definition when it launches Aug. 15. Cox and other cable companies will announce their channel assignments by Aug. 1. • No progress to report on DirecTV or Dish Network agreeing to carry the new networks.

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

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14 JUNE 22, 2012

INSIDE TUCSON BUSINESS

EXPENSE ACCOUNT

ARTS & ENTERTAINMENT

MEALS & ENTERTAINMENT

ARTS & CULTURE

It’s not holiday time but Tavolino has gift cards

Escape indoors this weekend for summer arts festival

Restaurants don’t usually promote gift cards outside of the holidays, but Tavolino Ristorante Italiano is bucking the trend with a promotion that gives $25 bonus on a $100 gift card. The promotion runs through Aug. 31. If you need ideas on how to spend the gift card, consider Tavolino’s $20 summer lunch special of two salads, a pizza and two drinks, including house wine. Tavolino is also selling wine at half-price, with the purchase of two entrees from 5-10 p.m. Wednesdays. • Tavolino Ristorante Italiano, 2890 E. Skyline Drive in Plaza Colonial — http:// tavolinoristorante.com/ — (520) 531-1913

Saturday suds at the Cup Staying cool is the name of the game in the summer and at the Cup Café you can do it with a sampling of suds on Saturdays. This Saturday (June 23), sample beers from San Tan Brewing Company, Chandler, and Grand Canyon Brewing Company, Williams, along with some light bites for $10. The beer tastings take place from 5-6 p.m. Saturdays. And on the last Saturday of the month, brews from Oak Creek Brewery, Sedona, will be featured, there will be a beer dinner with the featured brewery. The dinners are $35 to $40 range, plus tax and gratuity. In July, they’ll be featuring beers from Belgium and France. • Cup Café, 311 E. Congress St. in the Hotel Congress — www.hotelcongress. com/cup/ — (520) 798-1618

Steakhouse specials Casino del Sol’s PY Steakhouse is offering up plenty of summertime specials to enjoy in the cool, sophisticated restaurant. MICHAEL LURIA For carnivores, there’s a daily prime rib dinner special for $19 that includes 10-ounces of roasted prime rib, rosemary au jus, horse radish cream, a baked potato and seasonal vegetables. Add a glass of Chalone cabernet or Buehler Chardonnay for $4. If you want more than a glass, there are nightly wine specials for $20 a bottle. PY Steakhouse has a daily happy hour and occasional live music. Saturday, Casino Del Sol Resort mixologist Aaron DeFeo will host a cocktails class, the first in a series of six cocktail cocktail classes that will run from 2-4:30 p.m. Participants will learn techniques for shaking, stirring and measuring. Attend all six classes and you’ll end up with a complete set of home bar tools as well as a certificate of distinction. The cost of the classes is $25. • PY Steakhouse at Casino Del Sol Resort, 5655 W. Valencia Road — www. casinodelsol.com/ — (520) 324-9350

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

If it rains this weekend, that makes the second annual Oro Valley Indoor Summer Arts Festival even more appealing. The event from 10 a.m. - 4 p.m. Saturday (June 23) and Sunday features a variety of live music performances, children’s activities and regional artists. Admission is free to the event at the Hilton El Conquistador Golf and Tennis Resort, 10000 N. Oracle Road. It’s being put on by the Southern Arizona Arts and Cultural Alliance (SAACA). Information is online at www.SAACA.org.

Blue Star museums Once again this summer, 1,500 museums across the country are joining together as Blue Star Museums, offering free admission to active duty military personnel and their families. A project of the National Endowment for the Arts and the U.S. Department of Defense, it started Memorial Day and runs through Labor Day. Participating museums in the Tucson region are: Arizona Historical Society’s Fort Lowell Museum, 2900 N. Craycroft Road; Arizona History Museum, 949 E. Second St.; Arizona State Museum, 1013 E. University Blvd; Postal History Foundation, 920 N. First Ave.; Tohono Chul Park, 7366 N. Paseo del Norte; Tucson Museum of Art, 140 N. Main Ave.; and University of Arizona Muesum of Art, 1031 N. Olive Road. Other participating museums in Arizona include the Amerind Founda-

tion Museum, Dragoon; Fort Huachuca Museum, Fort Huachuca; Heard Museum, Phoenix; and Henry F. Hauser Museum, Sierra Vista. HERB STRATFORD

Art

“Summer Solos” is an exhibition featuring works of Tucson artists including Michael Cajero, Tom Kerrigan, Jane Herrick, Don West and Gary Swimmer. The show will be up through Sept. 1 at the Obsidian Gallery, 410 N. Toole Ave.

Film This weekend there is something for everyone on the big screen. The new animated feature “Brave,” from Pixar and Disney. is about a Scottish princess. Also debuting is the highly-anticipated action flick “Abraham Lincoln: Vampire Hunter” and the hot indie film “Moonrise Kingdom” from director Wes Anderson about a pair of love-struck runaways and their odd families. And Steve Carell stars in “Seeking a Friend for the End of the World,” a non-traditional love story with co-star Kiera Knightley. Contact Herb Stratford at herb@ ArtsandCultureGuy.com. Stratford teaches Arts Management at the University of Arizona. He appears weekly in Inside Tucson Business.

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InsideTucsonBusiness.com

JUNE 22, 2012

NEWS

Voters to see choices in most races this year Inside Tucson Business

Democratic and Republican voters will see competitve primary elections Aug. 28 for the U.S. Senate seat being vacated by Jon Kyl and all three of the new Congressional Districts that include a portion of Southern Arizona. Additionally in Pima County, four county supervisors seeking re-election also will face challengers. In supervisorial District 1 where Ann Day isn’t seeking re-election, four Republicans and a Democrat are vying to replace her. Three races in Southern Arizona are shaping up to be foregone conclusions. State Sen. Linda Lopez, D-Tucson, appears destined to go back to the Senate representing the new Legislative District 2 that now extends south to include Sahuarita and Green Valley. Lynne Pancrazi, a Yuma Democrat who has served in the state House of Representatives is the only candidate who filed for state Senate representing the new Legislative District 4. It extends across western Pima County and the Tohono O’odham Nation into southwestern Tucson. And incumbent Republican Pima County Assessor Bill Staples is, so far, the only candidate who will have his name on the ballot. After the June 19 special election to fill the Congressional seat vacated by Gabrielle Giffords, which for the most part will become Congressional District 2 in this year’s regular elections, unsuccessful Republican candidate Jesse Kelly has withdrawn from the race. This is a list of candidates who have filed to run for major offices in Southern Arizona. Candidates who have withdrawn or whose petitions have been successfully challenged are not included. Asterisks indicate incumbents running for re-election to the same office. Incumbents for Congressional and Legislative districts are not indicated due to redistricting.

U.S. Senate Richard Carmona, Tucson, Democrat Sheilia Bilyeu, Flagstaff, Libertarian Wil Cardon, Mesa, Republican Jeff Flake, Tempe, Republican Bryan Hackbarth, Peoria, Republican Clair Van Steenwyk, Buckeye, Republican

Congress, District 1 Wenona Benally Baldenegro, Flagstaff, Democrat Ann Kirkpatrick, Flagstaff, Democrat Anthony Prowell, Tucson, Libertarian Patrick Gatti, Show Low, Republican Jonathan Paton, Oro Valley, Republican Douglas Wade, Sedona, Republcan

Congress, District 2 Ron Barber, Tucson, Democrat Matt Heinz, Tucson, Democrat Mark Koskiniemi, Tucson, Republican Martha McSally, Tucson, Republican

Congress, District 3 Amanda Aguirre, Yuma, Democrat Manny Arreguin, Tucson, Democrat Raúl M. Grijalva, Tucson, Democrat Blanca Guerra, Tucson, Libertarian Gabriella Saucedo Mercer, Tucson, Republican Jaime Vasquez, Tucson, Republican

Legislature, District 2 Senate: Linda Lopez, Tucson, Democrat (No Republican) House (elect two): Andrea Dalessandro, Green Valley, and Rosanna Gabaldon, Green Valley, Democrats Christopher John Ackerley, Sahuarita, Republican

Legislature, District 3 Senate: Olivia Cajero Bedford, Tucson, and Maria Garcia, Tucson, both Democrats (No Republican) House (elect two): Sally Ann Gonzales, Tucson, and Macario Saldate, Tucson, Democrats (No Republicans)

Legislature, District 4 Senate: Lynne Pancrazi, Yuma, Democrat (No Republican) House (elect two): Juan Carlos “J.C.” Escamilla, San Luis; Charlene R Fernandez, Yuma; and Lisa Otondo, Yuma, Democrats (No Republicans)

Legislature, District 9 Senate: Steve Farley, Tucson, Democrat Tyler Mott, Tucson, Republican House (elect two): Dustin Cox, Tucson; Mohur Sarah Sidhwa, Tucson; and Victoria Steele, Tucson, Democrats Ethan Orr, Tucson, Republican

Legislature, District 10 Senate: David Bradley, Tucson, Democrat Frank Antenori, Tucson, Republican House (elect two): Stefanie Mach, Tucson; Brandon Patrick, Tucson; and Bruce Wheeler, Tucson, Democrats Todd A. Clodfelter, Tucson, and Ted Vogt, Tucson, Republicans

Legislature, District 11 Senate: Jo Holt, Oro Valley, Democrat

Kim Allen, Arizona City, Libertarian Al Melvin, Tucson, Republican House (elect two): Dave Joseph, Oro Valley, Democrat Adam Kwasman, Tucson, and Steve Smith, Maricopa, Republicans

Legislature, District 14 Senate: Patricia V. Fleming, Sierra Vista, Democrat Gail Griffin, Sierra Vista, Republican House (elect two): Robert Leach, Sierra Vista, and Mark Stonebraker, Sierra Vista, Democrats David Gowan, Sierra Vista, and David Stevens, Sierra Vista, Republicans

Arizona Corporation Commission (Elect three) Marcia Busching, Phoenix; Sandra Kennedy*, Phoenix; and Paul Newman*, Tucson, Democrats Susan Bitter Smith, Scottsdale; Robert “Bob” Burns, Peoria; and Bob Stump*, Peoria, Republicans

Pima County Supervisor, District 1 Nancy Young Wright, Democrat Mike Hellon, Republican Stuart McDaniel, Republican Ally Miller, Republican Vic Williams, Republican

Pima County Supervisor, District 2 Ramón Valadez*, Democrat James Kelly, Republican

Pima County Supervisor, District 3 Sharon Bronson*, Democrat Tanner Bell, Republican

Pima County Supervisor, District 4 Ray Carroll*, Republican Sean Collins, Republican (No Democrat)

Pima County Supervisor, District 5 Richard Elías*, Democrat Fernando Gonzales, Republican

Pima County Attorney Barbara LaWall*, Democrat Claudia Elquist, Green (No Republican)

Pima County Sheriff Clarence Dupnik*, Democrat Dave Croteau, Green Terry Frederick, Republican Vinson Holck, Republican Chester Manning, Republican Mark Napier, Republican

Pima County Assessor Bill Staples*, Republican (No Democrat)

Pima County Recorder F. Ann Rodriguez*, Democrat Bill Beard, Republican

Pima County School Superintendent Linda Arzoumanian*, Republican Mace Bravin, Republican (No Democrat)

Pima County Treasurer Elaine Richardson, Democrat Beth Ford*, Republican

16 JUNE 22, 2012

INSIDE TUCSON BUSINESS

NEWS

Grupo Agrícola Alta workers Alan Garcia Monjarrez, Servando Sebastian López and Lázaro Agustín Gutiérrez from left, prepare a truck of Sweet ‘n Sassy brand grapes for dispatch to the U.S. Port of Entry to Nogales from the Pozo Manuel vineyards in Pesquiera, Sonora.

GRAPES continued from Page 5 And then, failure to adhere to weight restrictions, color standards, numbers and sizes of scars, brix circumference and shattering (toughness of skin) could mean an entire load is turned back. At one point, Sonora growers had as much as 8 percent of their entire production rejected when it was presented at the U.S. border. At the core of the rejections was the Agricultural Marketing Agreement Act of 1937 and an amendment that calls for “zero tolerance for clamshells that contain in excess of 20 percent of bunches that are from five berries to less than one-quarter pound.” Sonora producers were consistently “making weight” — passing the two-pound threshold — by putting in “palomitas,”

or small bunches that, while pushing the clamshell over two pounds, also put in risk, and sometimes failed, an entire shipment, Arizona inspectors noted. Non-compliance with the order meant grapes were shipped, in bond, to Canada or returned to Mexico. Two-thirds of all grapes rejected were owing to the “bunch” issue. The remainder of rejections were owing to “straggling” and 10 percent to brix and shattering and straggling reasons. To stem that number, the Sonora grape growers association, Asociacion Agricola Local de Productores Uva de Mesa, contacted Ed Foster and José Puig. The two have worked with the growers intermittently for years, but this year, for the first time, Puig was authorized by director, Donald Butler,

to travel to Hermosillo and Caborca, to offer the department’s expertise. No less than 160 grape growers — perhaps quadruple the number expected — turned out in the two cities to listen to Puig on a topic that, soporific to the masses, had these audiences juiced. Puig, a Spanish-speaker, presented a PowerPoint presentation and a how-toavoid-rejection photo display. What was to be a 45-minute presentation in Hermosillo went three times as long. The next day 160 miles away in Caborca, another session went more than two hours “This was the first time we had done anything like this,” said Puig, “and it was absolutely rewarding to me. There wasn’t a detail in two-pound clams that we didn’t cover.”

The visits to Sonora were “acts of the highest generosity and professional courtesy that we might ever had expected,” said Juan Alberto Laborín Gómez, director of the Sonora grape association. The visits were especially meaningful and potentially cost-saving because Arizona inspectors, three years ago, stopped examining the U.S. bound harvest on the Sonora side of Nogales. That meant many rejects never crossed the border. Now rejected shipments have to re-imported back to Mexico from a U.S. warehouse. The training sessions in Mexico, Laborín said, “actually challenge our entire membership to do everything right from the onset.”

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Inside Tucson Business HERMOSILLO, Sonora — The lush vineyards near here are about to tell an American labor struggle. What would César Chávez have thought? It was the plight of 50,000 Mexican farm workers in vineyards that, 40 years ago, prompted Yuma organizer Chávez and cofounder of the National Farm Workers Association (later, the United Farm Workers), to lead a consumer boycott of grapes. Ultimately, Chávez was successful and his name has become synonymous with the struggle of field-hands. But that scenario took place in the United States and did so at a time when virtually all fruits and vegetables consumed in the U.S. were grown domestically. These days, depending on the season, as much as 85 percent of produce consumed in the U.S.

comes from Mexico. Chávez is once again in the news, but for a different reason. In a coincidence of time and circumstance, Canana Films and famed Mexican directors Diego Luna, Gael García Bernal and Pablo Cruz are producing a film about the Chávez’s struggle, much of which is being filmed in Sonora vineyards and on location in Hermosillo, Poblado Miguel Alemán, Estación Pesqueira and Cananea. The film, “César Chávez: Fight in the Fields,” stars Michael Peña, América Ferrera, Rosario Dawson and John Malkovich. Some 2,000 extras have been hired and it is estimated the project is funneling $10 million in to the local economy. Filming started in April and is to conclude in July. When released next year, the film is to debut in Hermosillo.

InsideTucsonBusiness.com

JUNE 22, 2012

PEOPLE IN ACTION PROMOTIONS Miraval has promoted Michael G. Tompkins to CEO. In this role, Tompkins’ will oversee all general resort operations. Tompkins began his career at Miraval in 2007. Most recently, Tompkins served as Miraval’s president and general manager. Before joining Miraval, Tompkins served as vice president of hotel and spa operations at Turning Stone Resort in Verona, New York. NEW HIRES The CareGiver Training Institute has hired Cathy S. Chappell as a grants and contracts specialist. Chappell recently relocated from Silicon Valley, Calif., where she ran a fundraising consulting business. Snell & Wilmer has hired attorney Jill Casson

MICHAEL TOMPKINS

Owen as a member of its real estate and commercial finance practice group. Owen received a law degree summa cum laude from the University of Arizona James E. Rogers College of Law. Staff Matters, Inc. has hired Julie Wood as a senior technical recruiter. Wood has 11 years of experience in the recruiting and staffing industry. La Paloma Academy has hired Demond Williams to assist the charter school’s physical education teachers. He plans to introduce football programs to La Paloma Academy schools. Williams played football at Michigan State University football

CATHY CHAPPELL

player. He has worked as an athletic supervisor at schools in the Phoenix area and in Douglas.

JILL CASSON OWEN

JULIE WOOD

{TELL US ONLINE}

Westward Look Wyndham Grand Resort & Spa has hired Jonathan Kastner as food and beverage director. Kastner brings over 36 years of extensive food, beverage and hospitality experience to the role of managing dining operations at Westward Look Wyndham Grand Resort & Spa. Kastner comes to Tucson from Kingston, Jamaica where he worked as director of food and beverage at the Wyndham Kingston Jamaica, a 303-room upscale hotel located in the heart of the city’s financial district.

Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print. Staff Matters, Inc. has hired Melissa MorenoRoss as a technical recruiter. Moreno-Ross has two years experience in recruiting and staffing operation. Westward Look Wyndham Grand Resort and Spa has hired Laura Barnett as director of human resources. Barnett has more than 18 years’ experience in

hospitality industry human resources. She will oversee daily human resource operations supporting a staff of nearly 230. LP&G, Inc., a Tucsonbased integrated marketing agency, has hired senior copywriter Scott Nosenko. Nosenko has 22 years of agency experience working in Chicago, Phoenix and Osaka, Japan on accounts such as Miller Lite, the 2008

SCOTT REDMON

Osaka Olympic bid and the Arizona Office of Tourism.

Salmon P. Chase College of Law in Highland Heights, Ky.

Rain for Rent has hired Tracy Castell as branch manager. Castell is responsible for overseeing the daily operations at the Tucson branch. Castell has more than 20 years of experience in business development, project management, operations and sales experience.

AWARDS Fire Chief Jeff Piechura of the Northwest Fire/Rescue District has successfully completed a process to renew a designation as “Chief Fire Officer.” The designation from the Commission on Professional Credentialing of the Center for Public Safety Excellence has awarded the credential to just 855 people. To maintain the CFO designation, Piechura was required to furnish evidence of sustained professional development, professional contributions, active association membership and community involvement.

Scott Redmon has joined the law firm, Ronald Zack PLC, as a senior associate attorney. Redmon actively represents clients in the areas of domestic relations (divorce, custody, and adoption), bankruptcy and personal injury. Redmon received a law degree from

‘‘

Jeff Hunt, partner at Cypress Civil Development, has attained State of Arizona registration as Professional Engineer (Civil). Hunt formed Cypress with Kevin Hall, PE in 2010. Cypress is a local firm focusing on planning and site development for commercial and residential projects throughout the southern Arizona region. APPOINTMENT Vincent Mast, of Westar Retail Advisors, has been retained to develop, design and manage the Monterey Court Cafe. Mast has more than 30 years experience in the restaurant business from concept development to real estate site selection. Mast owned and developed Suite 102 at Williams Center and Casanova Restaurant and was on the development team for Sir Veza’s Taco Garage.

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18 JUNE 22, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Don’t let yourself fall victim to your investment ‘biases’ If you’re like most people, you go through many complex thoughts and emotions when choosing investments. In fact, a field of study called “behavioral finance” is devoted to understanding why people make their investment decisions. As part of their work, behavioral finance researchers examine “biases” that affect people’s investment selections. And as an individual investor, you, too, can benefit from understanding these biases — so that you can avoid them. Here are some of the key biases identified by behavioral finance experts:

Overconfidence Overconfidence leads investors to believe they know the “right times” to buy and sell investments. But if you’re constantly buying and selling in the belief that you are correctly “timing” the market, you may be wrong many times. Also you may incur more investment fees, expenses and taxes than if you simply bought quality investments and held them for the long term.

Representativeness If you make decisions based on preconceived ideas or stereotypes, you may be suffering from a bias called “representativeness.” For example, if you see that investments from a particular sector, such as energy, have performed particularly well in one year, you might think these types of vehicles will do just as well the next year, so you load up on them. But every sector will go through ups and downs, so one year’s performance cannot necessarily predict the next year’s performance. Instead of chasing “hot” investments, try to build a balanced portfolio that reflects your individual goals, risk tolerance and time horizon.

Anchoring Similar to representativeness, an anchoring bias occurs when investors place too much emphasis on past performance. If you own shares of XYZ stock, for instance, and the stock price hits $60 per share, you might assume XYZ will always

sell for at least $60 a share. But if XYZ drops to $30 per share — perhaps as a result of a broadbased market decline — you might think it’s now “undervalued,” leading you to “snap up” even more shares. TIM BEITHON But the price drop for XYX shares could also be due to a change in the company’s fundamentals, such as a shake-up in management or a decline in the competitiveness of its products. As an informed investor, you need to work with your financial advisor to determine the causes of an investment’s decline and any actions you may need to take in response.

Confirmation If you are subject to confirmation bias, you may look for information that supports your reasons for choosing a particular investment. This type of bias can lead to faulty decision making, because you’ll end up with one-sided information. In other words, you may latch onto all the positive reasons for investing in something — such as a “hot stock” — but you may overlook the “red flags” that would cause you to think twice if you were being totally objective. To fight back against confirmation bias, take your time before making any investment decision — a quality investment will almost always be just as good a choice tomorrow as it is today. Being aware of investment biases can help you make better decisions — and over a period of many years, these decisions can make a difference as you work toward achieving your financial objectives.

Contact Tim Beithon, a financial advisor with Edward Jones, at Tim.Beithon@ edwardjones.com or (520) 546-1839. Beithon’s office is at 9525 E. Old Spanish Trail, Suite 111.

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

Company Name

Symbol

Jun. 20

Jun. 13 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 13.75 38.20

0.04 0.01 13.47 37.57

0.00 0.00 0.28 0.63

0.04 0.01 8.35 32.96

0.52 0.10 15.94 39.25

8.92 0.51 2.01 8.14 54.77 6.76 82.46 20.31 56.82 4.03 16.84 28.86 31.19 24.85 24.71 14.38 91.49 38.86 45.99 11.21 69.09 56.11 16.75 35.31 24.14 52.83 56.54 198.78 33.01 58.83 4.96 36.45 30.85 8.39 44.70 23.03 1.33 26.91 28.63 40.91 57.73 36.99 39.81 29.35 44.53 62.29 23.49 9.53 54.89 42.51 17.83 36.46 54.38 6.94 9.31 44.04 28.85 58.50 15.85 28.54 37.13 24.54 117.29 33.96 13.03 31.72 68.52 29.21 32.81 8.69 19.62

8.48 0.46 1.91 7.50 53.22 6.53 80.59 19.40 54.68 3.88 15.83 27.67 29.98 22.56 24.20 14.14 87.43 37.32 45.19 10.29 64.97 55.29 15.07 33.35 22.61 50.97 55.12 193.10 32.85 56.47 4.67 34.30 29.20 7.25 43.38 21.29 1.40 24.66 26.88 39.23 54.91 35.06 36.97 25.19 43.03 59.75 23.71 8.41 52.27 41.18 17.65 34.76 48.84 6.68 9.19 44.01 28.15 58.05 15.00 27.82 34.83 22.80 112.30 32.82 11.97 30.56 67.07 30.88 31.58 8.21 17.91

0.44 0.05 0.10 0.64 1.55 0.23 1.87 0.91 2.14 0.15 1.01 1.19 1.21 2.29 0.51 0.24 4.06 1.54 0.80 0.92 4.12 0.82 1.68 1.96 1.53 1.86 1.42 5.68 0.16 2.36 0.29 2.15 1.65 1.14 1.32 1.74 -0.07 2.25 1.75 1.68 2.82 1.93 2.84 4.16 1.50 2.54 -0.22 1.12 2.62 1.33 0.18 1.70 5.54 0.26 0.12 0.03 0.70 0.45 0.85 0.72 2.30 1.74 4.99 1.14 1.06 1.16 1.45 -1.67 1.23 0.48 1.71

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 21.57 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 28.53 22.58 4.44 13.18

16.60 6.17 5.55 11.25 65.79 12.13 83.03 32.85 59.59 7.03 26.29 43.06 31.65 27.63 38.93 14.59 92.67 41.32 46.22 12.25 72.46 70.15 17.91 56.78 30.49 53.28 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 55.00 46.40 24.28 40.58 85.90 15.52 11.65 44.64 32.79 59.40 22.39 34.24 39.24 25.84 119.82 58.29 13.36 32.98 68.54 44.26 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 22, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Optimism gains in Tucson housing market THE PULSE: Median Price Active Listings New Listings Pending Sales Homes Closed

TUCSON REAL ESTATE

6/11/2012

6/4/2012

$148,814 4,137 356 406 237

$135,250 4,171 369 403 204

Source: Long Realty Research Center

Every month, new home building permits data is published from Bright Future Business Consultants, exclusively in Inside Tucson Business.

MONTHLY BUILDING PERMITS: MAY 2012 2012

2011

2010

2009

Pima County

Marana

Sahuarita

Tucson

So. Pinal

214

128

169

209

Oro Valley Total Source: Bright Future Business Consultants

YEARTODATE BUILDING PERMITS: MAY 2012 2012

2011

2010

2009

Pima County

255

242

371

271

Marana

191

127

176

Sahuarita

129

197

221

Tucson

123

103

158

131

So. Pinal

Oro Valley

791

616

1,023

727

Total Source: Bright Future Business Consultants

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

Current

Last Week

6/19/2012

One 12 Month 12 Month Year Ago High Low

3.88% 4.125%APR 3.88% 4.125%APR 4.95% 3.25% 3.375%APR 3.25% 3.375% 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 • 520-324-0000 MB #0115327. Rates are subject to change without notice based upon market conditions.

3.75% 3.13%

By Roger Yohem Inside Tucson Business During May, the Tucson region’s new home market continued its steady, gradual improvement and is now 28 percent ahead of last year’s pace. For the first five months of the year, 791 residential building permits have been issued, 175 more than the 616 permits that were issued over the same period in 2011. The most dramatic increase in new construction has been in Sahuarita. Year-to-date, new home permits are 129 compared to 52 last year, representing a 148 percent increase. The new data is from housing analyst John Strobeck of Bright Future Business Consultants (see chart). In volume, Marana recorded the second-highest increase of 64 permits compared to 2011. “There is some optimism in the new construction market. The amount of permits is significant,” said Strobeck. “However, we may see much fewer issued in the second half of the year if these are not gobbled up quickly.” Builders and real estate agents are closely watching the balance among home sales, inventory, new listings and new construction. Through the first five months of the year, 5,915 homes have sold, an average of 1,183 per month. For all of 2011, the average monthly total was 1,066 sales. Average days on the market dropped to 67 in May after starting January at 80 days. Active listings also have declined steadily since October when there were 5,290 homes in inventory. In May, home inventory stood at 3,544. Last month, D.R. Horton Homes pulled the most new permits with 47, followed by Richmond American Homes with 39, Strobeck said.

Ashton gets RTA’s Kino Local contractor the Ashton Company, 2727 S. Country Club Road, has broken ground on the $20.6 million Kino Parkway22nd Street intersection improvement project. The two-year project is part of the 2006 voter-approved Regional Transportation Authority that includes funding from a half-cent regional sales tax and the City of Tucson and Pima County. As part of the intersection reconstruction, Kino Parkway will be elevated over 22nd Street to provide two continuous through lanes of traffic in each direction with on and off ramps. Under the new overpass, 22nd Street will be widened to three lanes in each direction. To provide access to the on ramps, both right and left turn lanes will be included. Additional improvements include new curbs, sidewalks, bus pullouts, bike lanes, lighting, landscaping and public art. The project will create about 181 construction-related jobs. The Ashton Company, founded by

Harold Ashton in 1946, is a heavy civil general engineering contractor that serves both public and private sectors. It’s projects have included wastewater treatment plants, highways, medical facilities, power plants, mining facilities, and sports stadiums.

3-parcel, $4.6M default Three commercial parcels at a shopping center on the southeast corner of East Golf Links and South Wilmot roads have fallen into default and are to be sold at auction in August. A Safeway supermarket at 6360 E. Golf Links Road is not part of the trustee’s sale although the distressed properties are described as Safeway lots 4, 5 and 6, according to public records. The parcels are a mix of adjacent, partially vacant buildings and undeveloped land, owned by SEC Golf Links & Wilmot Investment LLC, Phoenix. The addresses are 6320 E. Golf Links Road, 2753 S. Wilmot Road, and 2775 S. Wilmot Road. The original principal balance was $4.65 million. Amended documents, however, list a $4.2 million balance, according to the trustee’s sale notice. The beneficiary is Labrusca Holding Corp., Dallas. The public auction is scheduled for 10 a.m. Aug. 29 at the law offices of Quarles & Brady, 1 S. Church Ave., Suite 1700.

85756 sells out again Once again in May every listed home in zip code 85756 has sold — and then some. Due to a quirk in timing, more homes sold in the zip code around Tucson International Airport between Interstates 19 and 10 than were categorized as active listings. This is the third consecutive month where this has happened. With 39 listings, four more homes sold than were officially listed, according to the housing data from the Tucson Association of Realtors Multiple Listing Service. Zip code 85746 was the second-best seller in the region with 43 of 48 listings sold, a 90 percent ratio. This zip code is on the far southwest side in the area of Ajo Way and Mission Road. Midtown zip code 85712 had 58 of 62 homes sold, an 89 percent ratio. The zip code is north of Speedway between Alvernon Way and Wilmot Road. The highest number of listings in May were in Green Valley where there were 224, followed by zip code 85739 with 219. The latter zip code is along North Oracle Road from Catalina State Park north to the junction of state routes 77 and 79. The third-highest number of listings was in zip code 85750, on the northeast side near Sabino Canyon, where there were 206 listings, according to the Realtors report.

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

20 JUNE 22, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

No, this is not what air service is about It’s a twin spin on Tucson airline service. Last week in this space, I wrote about businesses needing to step up to play a role in getting airlines to offer more flights from Tucson International Airport. (If your business hasn’t done it yet, I encourage you to complete the 31-question survey online at www. surveymonkey.com/s/TUSairservice by June 30.) Now this week, we get a load of whale DAVID HATFIELD dung in something called the American Customer Satisfaction Index that purports to tell us that on a 100-point scale, the airline industry scored a 67 — a lousy score but the best in a decade — when it comes to satisfying customers. Surveyors came to this conclusion after talking to 70,000 people over the course of a year and running it through an “econometric model for measuring satisfaction.” I hope you have your pant legs rolled up. It’s noteworthy the results of the airline study came out Tuesday, the same day as the index issued the results of customer satisfaction between sit-down casual and fast-food restaurants. The geniuses in Ann Arbor, Mich., behind these indexes had brains enough to separate out different kinds of restaurants but lumped airlines together. There’s a big difference between grabbing a burger at a fast-food joint and enjoying a four-star restaurant experience. Granted, there aren’t a lot of “four star airlines” but a survey like this only feed the mindset that airline travel has to be a homogenous experience, with an emphasis on making it cheap. You get what you pay for. It’s one thing when an outfit like J.D. Power and Associates ranks satisfaction of new owners based on hard statistical data about the rates of repairs and other issues brought to dealers. It’s entirely different to try rate a service industry based on nebulous perceptions of rising prices and “generally poor customer service.” “Passengers who pay to check bags are particularly disenchanted,” according to the survey. Want to know how to solve that? Buy a first class ticket. The airlines will treat you nice. Your choice, but don’t demand fast-food prices and then complain if they ask you to pay extra for a sommelier. The fact is airline travel is pretty amazing. You can go anywhere half-way around the world from Tucson in less than a day. As a mode of transportation it’s as safe as they come. That’s what really counts. When adjusted for inflation in 1995 dollars, airfares in 2011 averaged $247, down nearly 18 percent from the inflation-adjusted high of $300 in 2000, according to government statistics. In any other industry, customers would expect a reason behind a lower price, food “sell by” date is soon, end of the season clothing, whatever. When airlines lower fares, customers complain about services that were taken away. If you want something, pay for it. If you care, airlines that exceeded the American Customer Satisfaction Index average score of 67 were JetBlue 81 and Southwest 77. Those falling below the average were Delta and US Airways both 65, American 64 and United 62. To put those in proper perspective, Papa John’s got 83, the highest among pizza places; Wendy’s got 78, the highest among fast-food burger restaurants; and Applebee’s topped all casual sit-down restaurants at 77. Anyone want to trust Applebee’s to fly you to New York?

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

EDITORIAL

Rio Nuevo conspiracy? Yeah, right It has come to the point that when a Tucsonan hears the words Rio Nuevo, there’s nothing good that comes afterward. In the 13 years since voters approved the tax increment financing district to revitalize downtown, way too much has been wasted — both in money and time on political bickering — with nothing to show for it. State Senate President Steve Pierce, who lives in Prescott and hasn’t had to listen to the near constant chatter, handed walking papers to obstructionist Rio Nuevo District board members Jodi Bain and Rick Grinnell and replaced them with Providence Service Corp. CEO Fletcher McCusker and developer Chris Sheafe. It turns out state-appointed Rio Nuevo board 2.0 had done no better in getting anything accomplished than the previous board of City of Tucson appointees. But now those who supported Bain and Grinnell have concocted a crazed conspiracy theory. It goes like this: Pierce colluded with auto dealer Jim Click, Southern Arizona Leadership Council President Ron Shoopman, Tucson Metro Chamber President Mike Varney and various Tucson elected officials and bureaucrats to get rid of Bain and Grinnell because they were on the cusp of exposing some nefarious truth. To keep this truth buried and give control of downtown redevelopment back to the city and the “good ole’ boys,” the conspirators struck a corrupt bargain with Pierce. To believe this theory, one has to assume McCusker wants to put his investments in downtown at risk to re-empower city officials who nearly killed downtown. It also means Click, who for decades has been a big benefactor for the Pima County Republican Party, decided to help cover up past misdeeds of a Democratled Tucson City Council. Varney and Shoopman? Who knows? Despite conspiracy claims that the now-former Rio Nuevo board members were committed to openness and transparency, the reality is they were anything but. When Inside Tucson Business requested Rio Nuevo

bank account statements, chairwoman Bain said the documents weren’t public. Really? Bank statements of taxpayer money aren’t public? Later, Bain said the bank, Wells Fargo, wouldn’t allow the board to share the accounts. Wells Fargo executives flatly denied the claim. Then Bain said Wells Fargo wouldn’t give Rio Nuevo the account statements, which Wells Fargo also denied. The bank account statements had been posted on the City of Tucson’s website, until attorneys for the Rio Nuevo board demanded they be taken down. There was more obfuscation over how revenues from sales taxes flowed into Rio Nuevo. Bain pleaded ignorance, saying the city kept track of the money flows. Yes, the same city that Rio Nuevo attorneys demanded remove financial information from its website. Perhaps it was coincidence the law firm where Bain’s boyfriend John Sundt works, Rusing Lopez and Lizardi, was hired to do legal for the district. Maybe it’s also coincidence that two people protesting the loudest over the ouster of Bain and Grinnell have direct connections to an outfit named TagLine Media, which the board hired to do its public relations. Loretta Hunnicutt, who runs a website named the Arizona Daily Independent, works at TagLine and state Sen. Frank Antenori, R-Tucson, has paid TagLine nearly $100,000 for work on his campaigns. It’s beginning to look as if the real conspiracy is that Antenori was pulling the strings of Rio Nuevo 2.0 in an effort to make sure it became enough of an unmitigated disaster that the Legislature would pull the plug on it, all the while blaming it on the city. An audit already has shown the city squandered $230 million with little to show for it and another audit the board just released confirmed the same. The state Attorney General’s Office and the FBI are nearing completion of an investigation. It’s about time for something good to come from Rio Nuevo.

InsideTucsonBusiness.com

JUNE 22, 2012

OPINION BUSINESS INK

For students and businesses alike, internships have value Over the years, it has been a fun privilege to work with several talented and promising college interns. Some were paid, some unpaid. Some worked summers, others while school was in session. Most were eager learners but green and untested. In exchange for a preview of what their future careers could be, they provided their budding skills in journalism, marketing, public relations and advertising. For a few months, they got to explore life in the real world. So far, neither the interns nor the companies ever left the other with the feeling the experience was worthless. Although it takes some extra effort, all internships have value. For students, the benefits can be huge. It’s an opportunity to do more than just glitz up the résumé. During an internship, students can learn new skills and step up to take personal responsibility for certain projects. Working on deadline can teach time management, a valuable life skill. In the right situation, internships can try and test many different tasks. The goal is to find a specific job that matches a person’s scholastic, technical and personal interests. Interns experience team building, witness the wonders of internal politics, and plant seeds for their own network of

professional contacts. In a perfect situation, an intern might even connect with a life-long mentor, someone willing to help guide and shape their career. On the downside, interns are ROGER YOHEM exposed to tough and competitive job market conditions. For every job opening, 100 people want it. For every job they want, it seems like there are 200 or more aggressive applicants. That’s why people who hire can be so selective. When considering new grads, propsective employers often ask “what else did you do” in addition to completing all your classes? Doing the minimum work for a college degree is not a golden ticket to employment. Internships also can have unintended consequences. On occasion, the experience can be so underwhelming, uncomfortable or terrible that the student decides the job is an awful fit. To pursue it further would be a horrific career choice. Even that internship has value. Some intern programs are a screening

and hiring tool. I’ve worked in two companies that did this. A handful of impressive interns were hired after graduating. During their internships, they never were told they were being considered for a full-time job. Businesses also should query interns for their opinions on existing products and programs. Poll them for honest feedback. They have no ties to the status quo or worries about politically correct answers. Companies also can tap interns for new ideas. This can be incredibly insightful and beneficial in areas such as technology, like social media and digital marketing. Most students are current with the newest new-age products and trends. Consider it free market research. To capture and implement their best ideas will require some extra work and personal attention. With a bit of planning, companies can gather this intelligence and use it to their advantage. All of this takes me back to my summers as a student. Neither the luck nor the connections were in place to land an internship. As a result, I painted houses for three summers in high school. In college, I cut grass and scrubbed restrooms in public parks for another three years. Neither job provided any mentoring

moments. That’s why I always try to teach and coach interns and young people just starting their careers. They can retain or reject whatever advice I throw out there. Much of it is pretty basic: be on time, ask questions, dress appropriately, act professional. Don’t just put your time in; go beyond the minimum effort. Join a professional group of peers. Network but don’t be a pest. Send hand-written thank you notes. Look for opportunities to show responsibility. Take a class in basic personal finance, public speaking and sales. Those are life skills that will always pay off. And don’t wait for graduation to print up some personal business cards. Sometimes, little things make a difference. One of our young photographers ditched his jeans and has become a sharp dresser. He now shoots business meetings in a sport coat and people have noticed. One former intern discovered she liked government affairs. Halfway through her term, out came the silver ring in her nasal septum. She landed a public policy job in Phoenix.

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

The dilemma of how to make city golf pay its way Tucson’s five municipal golf courses are causing city officials some major headaches. Golf, an enterprise entity for the city that must support itself, hasn’t been generating sufficient revenues to cover operating expenses. Mayor and Council voted 6-1 May 8 to require that golf repay its city subsidy and cover expenses through its own revenues within two years. The city’s Greens Committee, a council-appointed advisory committee made up of members who are knowledgeable about golf, has been asked to determine how to get the golf’s budget back in the black. Back in 1999, Piper Jaffray conducted a financial management study of the golf enterprise and noted that even though fewer rounds were being played, overhead costs had not been reduced. At the time there was consideration of privatizing the city’s courses but the council voted it down. Other recommendations in the report were implemented, including a master plan that professionalized the operation, including better training for golf staff. Golf’s budget remained in the black for three of the next four years. The 2005-2009 update to the golf master

plan called for monitoring and controlling expenses, making annual purchases of budgeted capital equipment, and paying scheduled interest and principal payments CAROL WEST toward the long-term debt. However, in 2010 when consideration was given to contracting out the management of three of the city’s courses, the Greens Committee recommended against it. They opined that green fees would likely be raised. If there was a cutback in staff, the quality of the greens would suffer. Long-term leases would have to be in play, or the private sector would not be interested in managing the courses. The committee also noted that over the prior 15 years, more than $12 million worth of improvements were made on four of the five golf courses. Revenues for this came from sale of land at Silverbell Golf Course, assistance from the Tucson Conquistadores at El Rio Golf Course,

and certificates of participation, which must be paid back with golf fees. By 2011, the city had privatized the golf concessions. At a recent Greens Committee meeting, members discussed the development of a system for golf to pay for itself. They noted the deficit in golf operations exists around the country. According to the National Golf Foundation, major factors for these deficits include the economy, the weather, and the increased competition. Phoenix is facing the same problems. City of Phoenix staff conducted a study of golf courses to learn how other communities were dealing with financial issues. Of 43 courses surveyed, only two — Torrey Pines in San Diego and two nine-hole courses in Glendale west of Phoenix — were financially secure. Phoenix officials have agreed to share their information with Tucson staff. This will be beneficial in developing future financial and marketing plans. The public addressed the Greens Committee at its May meeting. Several suggested a better marketing plan for city courses. The golf professionals should join local civic organizations to serve as golf ambassadors. Winter

overseeding practices should be analyzed for water savings. Others thought raising the golf fees would not result in self sufficiency because fewer people would play golf. They remarked that golf is held back by “the government overlay” and having the elected officials set the golf fees. There has been discussion about the transfer of one or more courses to the general fund to benefit Parks and Recreation. Most often mentioned for this is Fred Enke Golf Course. However, there are certain restrictions on future disposition and utilization of this land because the golf course was partially developed with federal funding. The Greens Committee has until October to make its recommendations for this city asset. City staff indicates that perhaps the council should consider converting golf funds to a special revenue fund from the present enterprise fund. One advantage would be that the financial statements would better clarify golf’s monetary checks and balances for future planning.

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 22, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Weeding out unneeded occupational licenses in Arizona Not all occupational licensing laws on the books in Tucson actually protect Arizona consumers from harm and shoddy workmanship. It’s pretty clear that many of these laws misuse state sanctions to protect existing businesses from unwanted competition. A study by the Institute for Justice in Washington, D.C., can help Arizona lawmakers decide which of these laws serve the public, and should stay, and which should go. The report, “License to Work: A National Study of Burdens from Occupational Licensing,” examines licensing practices for 102 lower wage occupations in all 50 states. If you want to work in one of the 64 occupations licensed in Arizona you may need to meet a minimum age requirement, demonstrate a certain level of often irrelevant experience and training, pass an exam that may have little to with your job, and pay a licensing fee. Some licensing requirements make sense. But of the 102 occupations reviewed, only seven — Cosmetologist, Pest Control Applicator, School Bus Driver, Emergency Medical Technician, Truck Driver and Vegetation Pesticide Handler — are regulated in Arizona and all other states. Beyond this handful of occupations with widely recognized public health and safety issues, the report questions the motives for licensing many others.

“Occupational practicitioners, often through professional associations, use the power of concentrated interests to lobby state legislators for protection from RONALD FRASER competition through licensing laws. Such anti-competitive motives are typically masked by appeals to protecting public health and safety, no matter how facially absurd,” the authors wrote. There are three ways to sort out the occupations that need state oversight from those that serve no compelling public purpose. First, if consumers in more than one half of the state get along just fine without regulating workers in an occupation, there is a good chance Arizona’s licensing requirements are not necessary. In this category we find the following occupations licensed in Arizona along with a small number of other states that also regulate them: Sign Lagnuage Interpreter, HVAC Contractor, Optician, Pharmacy Technician, Painting Contractor, Tank Tester, Floor Sander Contractor, Coach, Travel Guide, Packager, and Funeral

Attendant. Licensing such trades is both unnecessary and foolish. Next, if the licensing requirements in Arizona are a lot stiffer than those in use in other states, there is a good chance Arizona’s requirements serve mainly to protect existing businesses from competition rather than protect consumers. For example, Arizona requires a license for nearly every construction trade studied and makes entry into these trades especially difficult by requiring four years of apprenticeship for a general/commercial license and two years for a residential license. Many states that license those trades have no such experience requirements. Mobile home installers need two years of education and training compared to a national average of 194 days and in 23 states the requirement is three days. Lastly, if licensing requirements have little to do with protecting the health and safety of Arizona consumers, chances are they have a lot to do with protecting existing businesses from competition. In Arizona these occupations include: Sheet Metal Contractor, Terrazzo Contractor, Paving Equipment Operator, Cement Finishing Contractor and Glazier Contractor. For those occupations that do not clearly present an obvious need for the state to protect the health and safety of

InsideTucsonBusiness.com

Is it hard to find qualified workers for your company? Yes, Yes,

more so than before 24%

but it’s always been a challenge 53%

No,

we have plenty of qualified candidates 24%

Next week’s poll: Should the City of Tucson privatize its golf courses?

Arizonans, the report identifies private sector alternatives to state oversight. One option is voluntary certification through professional associations. This allows practitioners to distinguish themselves but also allows consumers to decide for themselves how much value to place on such credentials. The National Institute for Automotive Services Excellence, for example, confers its ASE certificate on about 350,000 mechanics. In addition, instead of state sanctions, third party consumer organizations such as the Better Business Bureau and Angie’s List hold occupational practitioners accountable for the quality of their goods and services. The report ends with this advice for state policymakers: “When reviewing current or proposed licensing laws, policymakers should demand proof that there is a clear, likely and well-established danger to the public from unlicensed practive ... (and) Forcing would-be workers to take unnecessary classes, engage in length apprenticeships, pass irrelevant exams or clear needless hurdles does nothing to ensure public safety.”

Contact Ronald Fraser, who writes on public policy issues for the DKT Liberty Project, a civil liberties organization in Washington, D.C., at fraserr@erols.com.

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STAFF

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InsideTucsonBusiness.com

Police OfÀcer

Show Low Police Department The Show Low Police Department is hiring for the position of police ofÀcer. We are a growing modern, progressive department, focused on teamwork and individual development. Starting pay for new recruits is $20.41 per hour, in addition to an excellent beneÀts package. AZPOST certiÀed laterals can earn an additional 1% per year for up to ten years of experience, and possible moving allowance consideration depending on qualiÀcations. Applications are available at showlowaz.gov 1st review of applications will be on June 27, 2012. We are an EOE/ADAAA employer. Test date will be July 7, 2012

Hiring?

EXECUTIVE DIRECTOR IMAGINE GREATER TUCSON

Imagine Greater Tucson seeks a dynamic Executive Director to lead the organization in the creation and implementation of a shared regional vision. The ideal candidate will be a recognized community leader who understands public policy making in the Tucson area and has a proven fundraising record. Please Visit www.ImagineGreaterTucson.org/Careers

JUNE 22, 2012 23 We are currently looking for motivated individuals in Pinal, Pima & Santa Cruz Counties to join our team as an Insurance Agent-In-Training As an Agent-In-Training (AIT), you receive on-the-job training with pay from highly successful agents. A blend of learning, practice and real-world application, this program combines current technologies and tried and-true techniques to provide a complete learning experience while earning a consistent income. Bilingual preferred. With some companies’ holding pools it can take quite a long time to become an agent. But not with American Family. In as little as one to two years you may be ready to run your own agency and enjoy all the benefits that come with it.

Send resumes to: Abenavid@amfam.com

Inside Tucson Business readers are:

Affluent Active Educated Investors Decision Makers

CALL 623-2350

TO REACH THEM TODAY!

Wire harness manufacturing company is seeking for a self motivated person to work as Customer Service Manager with the following credentials:

Inside Tucson Business has more readers than the Daily Star Weekday Employment Classiﬁeds.*

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Strong and demonstrated leadership abilities Excellent people and communication skills Strong background in customer service (minimum 3 years) Strong background in engineering Experience in ISO9000 and AS9100 Quality Systems - preferable Manufacturing experience - preferable US Citizen or Permanent Resident Card (a must) Bilingual (English/Spanish - excellent English communication skills)

If you have these qualifications and are interested in working for a well established company, please send your resume to ajuarez@gillman.com or fax it to 520 281 1372 We are EEO company Offer a good working environment Good Salary

*Media Audit Feb-Mar 2010 Over 200,000 copies per year 620,000 Web page views per year Over 1,000 Facebook likes Over 2,000 Twitter followers Over 8,000 Facebook views per year

www.azbiz.com

24 JUNE 22, 2012

INSIDE TUCSON BUSINESS

Tucson’s

CHOW CARD How it works...

E T H N I C R E S TA U R A N T D I N I N G W W W. T U C S O N C H O W C A R D . C O M

Participating Restaurants...

For only $20, the 2012 Tucson CHOW CARD gives you 2 meals for the price of 1 at over 20 locally owned and operated authentically ethnic and culturally diverse restaurants! The CHOW CARD is valid at participating Southern Arizona restaurants beginning May 1, 2012 – October 31, 2012

Don Pedro’s Peruvian Bistro (PERU) 3386 S. 6th Avenue ■ 209-1740

Yamato Japanese Restaurant (JAPANESE) 857 E. Grant Road ■ 624-3377

Saffron Indian Bistro (INDIAN) 7607 N. Oracle Road #101 ■ 742-9100

Govinda’s (VEGETARIAN-INTERNATIONAL) 711 E. Blacklidge Drive ■ 792-0630

SAVINGS UP TO $300!

Kababeque Indian Grill (INDIAN) 845 E. University Blvd ■ 388-4500

PURCHASE YOUR CHOW CARD… The 2012 ETHNIC RESTAURANT CHOW CARD will be available for purchase beginning May 1, 2012

Alibaba Restaurant (PERSIAN) 2545 E. Speedway Blvd ■ 319-2559

ONLINE

Amber Restaurant (POLISH) 7000 E. Tanque Verde Road ■ 296-9759

www.tucsonchowcard.com VIA MAIL TUCSON CHOW CARD C/O SAACA 7225 N. Oracle Road, Ste 112 Tucson, AZ 85704

Little Mexico Restaurant and Steakhouse (MEXICAN) 698 W. Irvington Road ■ 573-2924 2851 W. Valencia Road ■ 578-8852

IN PERSON You may purchase your card at the Southern Arizona Arts and Cultural Alliance’s office located at the Northwest corner of Oracle and Ina Rd. The SAACA offices are open Tuesday-Friday from 8:30am-4:30pm. Southern Arizona Arts and Cultural Alliance 7225 North Oracle Rd, Suite 112, Tucson, AZ 85704

Flavor of India (INDIAN) 12112 N. Rancho Vistoso Blvd #100 544-3005

PHONE The Southern Arizona Arts and Cultural Alliance accepts all major credit cards. Call the Southern Arizona Arts and Cultural Alliance at (520) 797-3959 x 9 to order your CHOW CARD

2012 ETHNIC RESTAURANT CHOW CARD MAIL-IN ORDER FORM (all information is required: orders will be confirmed via email)

2012 CHOW CARD $20.00 x ________________________ = _____________________ Total number of cards

Total amount

Name _______________________________________________________________________ Address _____________________________________________________________________ City _______________________________________ State ___________ Zip _____________ Phone _______________________________ Email_________________________________ ❏ Check or Money Order Enclosed $ ___________________________________________ ❏ Charge my

$ ___________________________________________

Expiration Date ___________________________ 3 Digit Security Code_______________ Account Number _____________________________________________________________ Signature ____________________________________________________________________

V Fine Thai Dining (THAI) 9 E. Congress Street ■ 882-8143

My Big Fat Greek Restaurant (GREEK) 7131 E. Broadway Blvd ■ 722-6000 7265 N. La Cholla Blvd ■ 797-7444 Mays Counter (AMERICAN-SOUTHERN) 2945 E. Speedway Blvd ■ 327-2421 Mi Tierra Mexican Restaurante (MEXICAN) 16238 N. Oracle Road ■ 825-3040 D’s Island Grill (Food Truck) (JAMAICAN) SW corner of 6th Ave and Grant Rd La Parilla Suiza (MEXICAN) 4250 W. Ina Road ■ 572-7200 2720 N. Oracle ■ 624-4300 5602 E. Speedway ■ 747-4838

CeeDee Jamaican Kitchen (JAMAICAN) 1070 N. Swan Road ■ 795-3400

2012 Ethnic Restaurant CHOW CARD RESTRICTIONS

■ CHOW Card is valid April 21, 2012 – October 31, 2012 ■ Purchase One Entrée at Full Price, receive another entrée FREE Of equal or lesser value. Maximum discount of $20 on any regular priced entrée ■ Not valid with any other promotions and cannot be combined with any other discounts, happy hour specials or coupons. ■ Only one use per restaurant, per card ■ Valid for Dinner or Lunch only (unless otherwise noted) ■ Remaining savings not used at the end of the promotion, not redeemable for cash ■ Valid only on regular priced entrées (higher price will prevail) ■ Restaurant reserves the right to add up to 18% gratuity based on original bill (prior to discount) ■ Not valid on Holiday’s including: Mother’s Day, Father’s Day, July 4th, Memorial Day, Labor Day ■ Lost, stolen or damaged cards cannot be replaced ■ Issuer is not responsible for restaurant closures ■ Purchased cards are non-refundable ■ Please check the website for details on restrictions and limitations (subject to change). www.tucsonchowcard.com