Inside Tucson Business 7/13/12 by Territorial Newspapers

MOTHER-DAUGHTER TEAM EMBRACE THEIR SPACE I-10 Self-Storage business is a Herder family affair PAGE 9

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JULY 13, 2012 • VOL. 21, NO. 59 • $1

Pipe dreams

Tucson rankings all over the board PAGE 3

Mexico banks on new natural gas line from U.S. Page 5

Spinning around like a squirrel cage

Photo illustration by Andrew Arthur

Lots of housing action but how much progress? Page 19

Tucson home prices projected to gain 3.4% by year’s end By Roger Yohem Inside Tucson Business Buried deep in the nation’s vast database of housing statistics is a positive sign about the short-term future of the Tucson market: Local home prices are projected to increase an average of 3.4 percent by the end of the year. After years of decline, the new forecast puts Tucson into the nation’s top 20 metropolitan areas for highest price increases. Expected to lead the way is Seattle with a 14.4 percent gain. At 10.4 percent, the Phoenix metro market is predicted to have the second-highest average gain. Tucson ranks No. 17.

The new analysis is from Clear Capital’s June Home Data Index Market Report. California-based Clear Capital analyzes data to identify real estate market trends for financial organizations. Alex Villacorta, research and analytics director for Clear Capital, said he expects to see national, regional and most metropolitan markets improve over the next six months. Price trends in June “provided evidence that housing has turned the corner, with the momentum of the recovery picking up speed.” Cautiously optimistic, he emphasized the housing market’s fundamentals “remain vulnerable to domestic and global economic chal-

lenges.” Over the past 12 months, Clear Capital reported that Tucson’s housing market has stabilized somewhat. Through June 2012, the region struggled to cling to a year-over-year average price gain of just 0.3 percent. Yet from the 2012 first quarter to the second quarter, the increase was a solid 2.7 percent. However, distressed real estate owned properties, known as REOs, continue to plague Tucson’s recovery. These foreclosed bank-owned homes made up 37.6 percent of local sales in the second quarter. That is the eighth-highest ratio in the nation and a trend that is not expected to decline significantly until the end

of the year. Worse off than Tucson, Detroit had the highest REO saturation at 52.2 percent. Other cities with higher REOs than Tucson were Atlanta at 44 percent; Las Vegas at 42.2 percent; Memphis at 41.6 percent; Birmingham, Ala., at 40.2 percent; Fresno, Calif., at 39.3 percent; and Bakersfield, Calif., at 38 percent. Distressed foreclosures typically drive down values in all price segments as buyers and investors move to purchase properties at large discounts.

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

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INSIDE TUCSON BUSINESS

InsideTucsonBusiness.com

JULY 13, 2012

NEWS

In surveys, Tucson ranks all over the board — does it matter?

Photo illustration by Andrew Arthur

Deadline is Aug. 6 to appeal Walmart ruling

By Patrick McNamara Inside Tucson Business The online publication the Daily Beast and famed academic Richard Florida recently pronounced Tucson as one of the most creative places in the country. The placement would seem a welcome piece of good news following a slew of poor rankings for the city from the likes of Forbes, New Geography.com and the Brookings Institution. The rankings, though, bring up questions of how one survey can pronounce Tucson the sixth best market for aerospace and defense manufacturing as Business Facilities magazine did, while another ranked Tucson a lowly 92nd for business and careers, as Forbes did.

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

“I tend to look at these pretty critically,” said Laura Shaw, senior vice president of marketing and communications for Tucson Regional Economic Opportunities (TREO). Shaw said it’s often necessary to delve deep into the data sets used to create the rankings to determine what they really mean. Of course, Shaw said TREO uses the positive rankings in its marketing materials. But looking askance at surveys is exactly what staffers at Tucson City Councilwoman Shirley Scott’s office did after receiving an email from a constituent with questions about a survey released in May that had been done by Thumbtack.com in partnership with the Kauffman Foundation. That

survey ranked Tucson among the five least business friendly cities in the country — ranked with Detroit and Sacramento, San Diego and Los Angeles, in California. “We had never heard of Thumbtack before,” Scott said. “When you take a look at what they based their metrics on, it’s astonishingly inaccurate.” Scott and her staffers took exception to the small survey size used for the Thumbtack.com effort. Of the more than 11,000 members of the Arizona Small Business Association, only 23 respondents identified Tucson as the home of their business. Scott also questioned the limited cross-section of business types the survey respondents represented.

SEE RANKINGS PAGE 4

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAN GIBSON dgibson@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

REPORTER INTERN KAITY SITZMAN ksitzman@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.

Opponents of a proposed Walmart Supercenter at El Con have until Aug. 6 to appeal a Superior Court judge’s ruling denying a request by a neighborhood association that sought to block it. Judge Jeffrey Bergin on July 6 denied a request by the El Encanto Estates Neighborhood Association seeking a special action to invalidate a 2000 development agreement for the mall with the city of Tucson. The ruling upheld the mall’s protected development rights and confirmed the proposal to build a 108,000 square-foot Walmart store conforms to the city’s zoning regulations. Last October, the homeowners group filed a lawsuit in an attempt to overturn a Tucson Board of Adjustment’s decision allowing for the Walmart to be built on the site that formerly housed a three-story 290,000 square-foot retail store built in the 1960s as a Levy’s department store and was last used by Macy’s until it closed in early 2008. In seeking to block the Walmart, the neighborhood association’s lawyers, with Fennemore Craig, argued the mall’s development agreement with the city had expired and that the Walmart proposal was not in compliance with the city’s anti-big box ordinance and land use zoning codes. “The question of whether Walmart’s plans meet the stringent development criteria established for El Con Mall has been answered by the city zoning administrator, the Tucson Board of Adjustment, and now Pima County Superior Court,” said Walmart media director Delia Garcia. If Bergin’s ruling is contested, the issue would go before the Arizona Court of Appeals.

‘Humble’ Valenzuela dead of lung complications Funeral services were held Thursday for William G. “Bill” Valenzuela, founder and chairman of W.G. Valenzuela Drywall & Paint Inc., who died July 8 of complications from acute respiratory distress syndrome, of which he had just been diagnosed last month. He was 79. Born of humble beginnings, Valenzuela built his business into a thriving concern and was active in Tucson civic issues. Mary Peachin, who writes the monthly Remembering Tucson column in Inside Tucson Business, profile Valenzuela in July 2011 in which he said he always valued family. Among the honors he received were Tucson’s Man of the Year and Hispanic Man of the Year.

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

6 7-8 9 10 10 14 15

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

17 17 18 19 20 20 23

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INSIDE TUCSON BUSINESS

NEWS RANKINGS CONTINUED FROM PAGE 3

Judge rules county was wrong to deny Rosemont

Several of those survey participants said they worked in the health and beauty industry. In their responses, they identified licensing issues as a primary concern, Scott said. The councilwoman noted the city does not license businesses such as manicurists and beauticians. The state regulates those types of businesses. Scott also said the tendency in the news media is to report uncritically on such surveys, particularly ones that cast the region in a negative light. “I think it would be helpful if the press did here what it did in San Diego, that is to be helpful,” Scott said. Tucson Mayor Jonathan Rothschild also said the Thumbtack survey appeared problematic, but he said he generally tries to read all the surveys and lists about the city he comes across. “My approach is to look at them and try to learn what I can from them,” Rothschild said. For example, last month a report by the Brookings Institution put Tucson at No. 83 among 100 cities on its Metro Monitor survey. “You’ve got to take those a little serious,” he said, noting the generally good reputation of Brookings.

A Pima County Superior Court judge has ruled in favor of an appeal by Augusta Resource Corp.’s Rosemont Mine over Pima County Air Quality Control District’s denial of air permit application to open the mine. The July 5 ruling determined that both the district and the Pima County Air Quality Hearing Board “acted in an arbitrary and capricious manner and that the (they) abused their discretion.” The ruling directed the district to process Rosemont’s application in a timely manner. Augusta Resource taken its case to the Arizona Department of Environmental Quality (ADEQ), where it has also applied for an air permit. “This ruling is certainly a positive win for Rosemont,” said Rod Pace, CEO of Rosemont Copper. “There was no doubt that we were being treated unfairly and uniquely in Pima County. The court made the right decision to order Pima County to allow Rosemont to be treated justly. Notwithstanding, we will continue to work with the ADEQ to ensure the Rosemont Air Permit gets processed expeditiously.”

New UA president Hart arrives on campus

Tucson Metro Chamber CEO and president Mike Varney, agreed that the bigname rankings need to be taken seriously. “If CNN and Money magazine put their name on it, it’s legitimate,” Varney said. He said regional leaders should be concerned when the city appears on the wrong side of lists like Forbes rankings. “To the average person who reads that, it has meaning,” he said. “The perception is the reality.” More than perception, Varney said the most telling statistic of Tucson’s business climate was last month’s mid-year assessment of the state’s economy by University of Arizona’s Eller College of Management researchers Marshall Vest and Gerald Swanson. That assessment noted that of the 75,000 new jobs created in the state since August 2010, just 800 have been in the Tucson region. The area has lost more than 35,000 jobs in the past four years. “That says it all,” Varney said. “It’s hard to refute when it comes from our own guys at the Eller school.” Like Rothschild, Varney said lawmakers should view the surveys and rankings as something to inform better public policies. “We need to talk about how to move up

in these surveys rather than always trying to kill the messenger,” Varney said. “This information is plastered on every site selector’s bulletin board.” Site selectors are business consultants who help corporate bosses find amenable locations for expansions or moves. Among the many criteria site selectors use on behalf of clients are rankings found in consumer and industry magazines. “We certainly take a look at these things,” said Deane C. Foote, president and CEO of Phoenix-based Foote Consulting Group. “But we take it with a grain of salt.” Foote said clients at times have pointed out rankings and surveys they’ve come across and requested he examine the claims further. But, he said, most of the research is culled from deeper analyses of economic and tax conditions of specific regions. Whatever the surveys and rankings say, Rothschild said Tucson always has room for improvement in the economic front. “In this community, we have a long history of being down on ourselves and it echoes,” Rothschild said. “I’d love to see the synergy get better.”

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

Tucson: The city in numbers NO. 2 medium metropolitan area on Headlight LLC’s, Best Performing Metros

Patrick McArdle, UANews

NO. 4 on the American Lung Foundation Top 25 Cleanest st U.S. Cities for Year-Round Particle Pollution

Ann Weaver Hart

New University of Arizona President Ann Weaver Hart arrived on campus Monday (July 9) for ceremonies on the UA Mall marking her first day on the job. In speaking with reporters after the event, UANews said she talked of reducing the time to degree completion, improving graduation rates and emphasizing the importance of higher education and institutions such as the UA. She also talked of working closely with elected officials and community leaders as well as the importance of pursuing private funds to supports students and the UA’s mission. Hart replaces Eugene Sander, former agriculture dean who served as interim president for a year after former President Robert Shelton resigned to become become executive director of the Fiesta Bowl.

NO. 4 on the Case-Shiller Index Best Five Housing Markets kets over the Next Two Years NO. 6 on Business Facilities Magazine’s 2011 Best Cities for Aerospace/Defense Manufacturing NO. 12 in Outdoor Magazine’s Best Town Ever 2011 NO. 12 on Bicycling Magazine’s America’s Top 50 Bike-Friendly Friendly Cities NO. 15 on CNNMoney’s Best Places to Retire NO. 20 on The Daily Beast’s America’s Most Creative Cities ties list YAHOO TRAVEL + LEISURE ranks Tucson one of the most underrated cities NO. 70 on New Geography’s Best Cities for Job Growth (mid-sized cities) NO. 75 on Forbes’ ranking of Education NO. 81 in Forbes’ list of Cost of Doing Business NO. 83 on the Brookings Institution’s Metro Monitor NO. 92 on Forbes’ Best Places for Business and Careers NO. 152 on Forbes’ list of Job Growth “F” for small business friendliness according to Thumbtack.com ack.com and Kauffman Foundation Survey. Lists Tucson did not make: Forbes 2011 list of Most Miserable Cities and The Daily Beast’s Brokest Cities.

InsideTucsonBusiness.com

JULY 13, 2012

NEWS

Mexico bets on cross-border a natural gas pipeline, but questions abound in U.S. a western routing along state and private property. The pipeline would initially move 160 million to 210 million cubic-feet per day and would have the ability to expand to 760 million cubic-feet. If approved, it would take nine months to build, create 500 temporary construction jobs and generate $3 million a year in property taxes its first year, the company said. At the core of the plan is the inexpensive, abundant supply of natural gas in the U.S. selling at prices that are less than half of what they were a year ago and the energy derived from it at current prices equates to oil at $10 a barrel. Natural gas is available only sporadically throughout Mexico. The project has been presented in Mexico as a fait acompli. From Sasabe, 625 miles of natural gas pipelines will distribute the prodBy Keith Rosenblum uct to several Sonoran cities and the coastal Inside Tucson Business populations of Puerto Libertad and Guaymas and eastward to Chihuahua state. A multi-million dollar The gas will replace fuel oil at generplan would open northating plants run by the Federal Electricwestern Mexico to wideity Commission (Comisión Federal spread use of natural gas, de Electricidad, or CFE). The plant in clean up power plants and Puerto Libertad, less than 240 miles lower electricity prices, but south of the Arizona border, generthe plan is partially continates 632 megawatts and emits a gent on the not-so-certain assteady plume of black smoke over sumption it will connect to a the Sea of Cortez. A bid was tenpipeline at the Arizona border. dered for the 625-mile of pipeline The plan, announced three and corollary services at the end months ago, requires extension of June and if it goes as schedof a natural gas pipeline to the uled, conversions of the CFE twin border towns of Sasabe, Ariplants could begin in 2014. zona and Sonora, about 60 miles What is happening on the southwest of Tucson. From Sasabe, U.S. side to facilitate the proja subsidiary of Mexico’s oil company, ect, however, is not as clear. Pemex, intends to create a multi-state Public hearings in June grid that would clean up power proconducted by Kinder Morduction at several coastal generating gan with FERC represenplants and offer industrial gas as an optatives produced only tion to residents and businesses which, objections to both proup until now, have known only electricity posals. Otherwise, it’s and propane. mostly silence. As often happens with cross-border projects, information disseminated in one country is at odds with that of the other counSEE PIPELINE PAGE 6 try. Moreover, other natural gas projects in northern Mexico have been announced with fanfare, then scrapped. Yet this project may enjoy success precisely because it appears to fuse market forces and environmental stewardship. The plan is moving briskly in Mexico, if slowly and quietly in Arizona, and jibes with economic and ecological realities in both countries. Bids have already been tendered in Mexico, and Kinder Morgan, which operates 75,000 miles of pipelines and 180 terminals, began in April what is called an “early environmental review.” Its so-called Sasabe Lateral Project, presented to the U.S. Federal Energy Regulatory Commission (FERC), would parallel Arizona State Route 286 which runs from Three Points west of Tucson, either along an eastern routing through the Buenos Aires National Wildlife Refuge or

This Week’s

Good News Riding Sun Tran to work In light of this week’s article in Inside Tucson Business about ranking, the Brookings Institute this week ranked Tucson fourth best in the nation in terms workers’ access to public transportation. According to the study, 52.3 percent of the metro area has neighborhood access to public transportation that can get them to their jobs within 90 minutes. That’s good, considering the national average is 27 percent. Ranked No. 1 was Salt Lake City at 64 percent and the worst was Palm Bay, Fla., at 6 percent.

The Tucson

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

Padres, Moorad separating Jeff Moorad, is not only trying to sell the Triple-A Tucson Padres, but has removed Tr himself from the parent San Diego Padres hi that th are also up for sale. While Moorad remains vice chairman of the parent club, he m removed himself as CEO in March after unre successfully trying to gain majority ownersu ship sh — his group currently owns 49 percent of the club — in a deal that valued the club at $500 million. Now a group headed by the O’Malley family, the same family that owned the Los fa Angeles — and formerly Brooklyn — DodgAn ers er from 1950-1998 is seeking to buy the team. Reports in San Diego say the sale te price pr is now $800 million.

LLetcher the consultant Mike Letcher, who was fired from his job as Tucson city manager last September after writing a whiny accusatory letter of resignawr tion in which he said he would leave after tio another 11 months, is now offering his exan pertise to others as a management consulpe tant. He has activated BridgeGroup, where he lists himself as president and CEO, an limited liability corporation he initially filed to open in 2009. According to its website, BridgeGroup “is not your typical management-consulting firm.” Among the services offered are effective board/manger relations and labor management consulting.

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INSIDE TUCSON BUSINESS

PIPELINE CONTINUED FROM PAGE 5

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

BANKRUPTCIES Chapter 11 Business reorganization Fluoresco Lighting-Sign Maintenance Corp., 5505 S. Nogales Highway. Principal: Ladd M. Kleiman, president. Assets: Not filed. Liabilities: Not filed. Largest creditor(s): Schedule not filed. Case No. 12-14719 filed June 29. Law firm: Mesch Clark & Rothschild Kayco Leasing LLC, 5505 S. Nogales Highway. Principal: Ladd Kleiman, manager-member. (To be jointly administered with Case No. 12-14719 as Fuoresco Lighting-Sign Maintenance Corp.) Assets: Not filed. Liabilities: Not filed. Largest creditor(s): Schedule not filed. Case No. 12-14723 filed June 29. Law firm: Mesch Clark & Rothschild Ernest L. Graves and Mary Ellen Graves, 7101 N. Corrida De Venado. Principal: Ernest L. Graves and Mary Ellen Graves, joint debtors. Estimated assets: $50,000 or less. Estimated liabilities: $50,000 or less. Largest creditor(s): Schedule not filed. Case No. 1215178 filed July 6. Law firm: McEvoy Daniels & Darcy

FORECLOSURE NOTICES Wincat LLC 1632 N. Louis Lane 85712 Tax parcel: 122-01-0540 Original Principal: $568,000.00 Beneficiary: BMO Harris Bank, as legal successor to M&I Marshall & Ilsley Bank Auction time and date: 11:30 a.m. Sept. 18, 2012 Trustee: Western Regional Foreclosures, 1 W. Deer Valley Road, Suite 103, Phoenix Pima Canyon Estates 133 LLC 1407 E. Desert Garden Drive 85718 Tax parcel: 220-20-1700 Original Principal: $455,000.00 Beneficiary: James A. Broderick Auction time and date: 11:30 a.m. Sept. 19, 2012 Trustee: Fidelity National Title Agency, 60 E. Rio Salado Parkway, Suite 1106, Tempe El Gran Mezon Del Cobre LLC 2960 N. First Ave. 85719 Tax parcel: 860-65-6616 Original Principal: $360,000.00 Beneficiary: Bank of Tucson Auction time and date: 11 a.m. Sept. 28, 2012 Trustee: Ronald M. Horwitz, Jaburg & Wilk, 3200 N. Central Ave., Suite 2000, Phoenix

LIENS Federal tax liens Diversiﬁed Capital Management LLC and Darin W. Guthrie, 2016 E. Broadway. Amount owed: $7,764.90. KJD Enterprises Inc., 220 W. Fort Lowell Road. Amount owed: $8,231.21. Once Upon A Time Inc., 5575 E. River Road, Suite 151. Amount owed: $6,801.91 TK Computers & Electronics, 3366 N. Dodge Blvd. Amount owed: $2,136.00. Oasis at Wildhorse Ranch LLC, 6801 N. Camino Verde. Amount owed: $4,559.32. Hollis Graphics Inc., 178 E. Broadway. Amount owed: $8,026.84. IBA Associates LLC, 2450 N. Pantano Road. Amount owed: $2,220.58. Cattletown Steak House and John R. Kocis, 3141 E. Drexel Road. Amount owed: $12,175.76. Crying Onion Cafe and SEDA Enterprises Inc., 2730 W. Placita Hacienda. Amount owed: $17,007.17. Kim & Sons LLC and Ma Bao, 4650 W. Ina Road. Amount owed: $2,544.27. Amorosa Assisted Living and Corpuz Holdings, 1659 Capitol Ave., San Jose, Calif. Amount owed: $5,914.68. Acoma Animal Clinic Inc., 6781 N. Thornydale Road, Suite 207, Marana. Amount owed: $2,065.83. Ram Electric Inc., 4532 E. 32nd St. Amounts owed: $9,070.81 and $1,806.24. Sno-Cones Sonora and Robles Parra Enterprises LLC, 921 W. Congress St. Amount owed: $2,804.66. All That Vending and Norris Williams, 1664 E. Calle Grandiosa. Amount owed: $5,440.56. Valley Energy Corp., 5809 S. Belvedere Ave. Amount owed: $111,507.34.

Proud Creations and Heriberto Tapia, 5233 E. Seventh St. Amount owed: $18,131.39. Sweetwater Group LLC, 25 E. Rillito St. Amount owed: $26,399.23. Systems Service Inc., PO Box 8522, 85738. Amount owed: $9,123.09. Red Ant Inc., PO Box 1508, Sahuarita 85629. Amount owed: $2,675.30. Teresa P. Mejia Inc., 7125 S. Avenida Sombra. Amount owed: $3,112.38. Five Star Adult Care Home LLC, 3275 W. Ina Road, Suite 100. Amount owed: $33,578.97. Beach Baby Tan Club Ltd. LLC, 5635 E. River Road. Amount owed: $2,139.01. Dan Lewis Inc., 2455 N. Campbell Ave. Amount owed: $4,492.95. IRI Sabino Springs Golf Course LLC, 9777 E. Sabino Greens Drive. Amount owed: $11,815.98. Salud Oyster Bar & Grill and Salud Valencia LLC, 1825 W. Valencia Road. Amount owed: $8,729.63. L&K Rooﬁng LLC, 2320 E. Summit St. Amounts owed: $2,134.56 and $91,809.20. Cake Gourmet LLC and Christie O’Rourke, 6781 N. Thornydale Road, Suite 22, Marana. Amount owed: $6,408.70. Crystal Auto Glass Enterprises LLC and Shane Johnson, 3395 N. Richey Blvd. Amount owed: $594,265.60. Design Solutions Inc., 3661 N. Campbell Ave. 432. Amount owed: $22,966.50. Stay Flush LLC, 4759 E. Sunrise Drive. Amount owed: $34,311.87. Awards To Go Inc., 7340 E. Broadway. Amount owed: $1,560.00. Garcia Metal Products Inc., 4201 S. Randolph Ave. Amount owed: $454,687.00. Casa Molina and Casa Molina Inc., 6225 E. Speedway. Amount owed: $3,979.14. Olsen Chiropractic LLC and Eric Olsen, 3055 S. Kinney Road. Amount owed: $11,805.87. A&L Auto Care and Arturo Estrada, 4325 S. Sixth Ave. Amount owed: $1,678.34.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Sharp Marketing Group LLC, 5752 E. Seneca St. Amount owed: $13,427.99. Tampico Health Care Inc., 9860 E. Harmony Lane. Amount owed: $6,052.36. Brick Floor Specialists, 5724 E. Speedway. Amount owed: $8,502.08. F&J Restaurants Inc., 3048 E. Broadway. Amount owed: $47,033.84. Wings Pizza N Things and WPNT Tucson LLC, 8 838 E. Broadway. Amount owed: $2,668.27. Marana Stockyards Cafe and Pennie Vandervier, 21027 E. Propsector Place, Red Rock. Amount owed: $37,437.74. Sushi Ten, 2664 W. Calle Don Florencio. Amount owed: $22,992.77. Anda Financial Services LLC, 6417 E. Grant Road. Amount owed: $2,188.36. Mike Chavez Drywall, 7570 W. Illinois St. Amount owed: $11,720.37. Appaloosa In The Woods LLC, 11680 N. Copper Mountain Drive, Oro Valley. Amount owed: $6,103.42. Concrete & More LLC, 140 E. Elm St. Amount owed: $2,461.93. Latrikunda Transport Services and Amelia Y. Nance, PO Box 85658, 85754. Amount owed: $5,256.33. MVC Masonry LLC, 8160 S. Marstellar Road. Amount owed: $1,637.02. Stolen Recipe BBQ and Carl Gosset and Maurine Gosset, 3791 S. Bobby Drive. Amount owed: $1,023.94. A Steak In the Neighborhood and My Brother’s Bar Congress LLC, 135 E. Congress St. Amount owed: $9,092.35.

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

Kazal Fire Protection Inc. against QIP Tucson Office I LLC. Amount owed: $33,963.80. L.R. Borelli Inc. against QIP Tucson Office I LLC. Amount owed: $12,042.90. Liberty Fence & Supply Inc. against QIP Tucson Office I LLC. Amount owed: $63,830.00. Kelley Bros. Arizona against QIP Tucson Office I LLC and US Bank. Amount owed: $68,400.00. MKB Constructon Inc. against QIP Tucson Office I LLC. Amount owed: $1,015,715.58.

One organization, Altar Valley Conservation Alliance, a group of ranchers, cattlemen, beekeepers and tourism providers has come out against the pipeline. Members “feel strongly that a pipeline fundamentally goes against what we we have been ag working towards in this valley,” wo said Sarah King, a rancher. Any new pipeline should be located alongside pipe an eexisting line or on established rights-of-way, even if it means adding rights distance to the route, she said. Such a distan right-of-way already exists between Tucright-o son and Nogales and could be taken west Sásabe, Sonora, from Nogales, King said. to Sásab Members who attended both of the M b Kinder Morgan hearings, one in Arivaca and one west of Tucson, came away believing that “both environmental and safety concerns” put the project at odds with the region’s best interests. “We are urging people to express their opinions, whatever they are, and we are working on our own position for FERC,” she said. These “pre-filing” steps precede a so-called “scoping meeting,” where impact on community and environment is discussed formally, will probably be held in September, King said. Bill Dunn, a rancher active in the Southern Arizona Cattlemen’s Protective Association (SACPA) whose membership from Pima, Pinal and Santa Cruz counties is allied with the Altar Valley Conservation Alliance, said ranchers should not be portrayed as anti-development. “We are simply trying to be advocates for the resource that is in our care, as ranchers and as part of the community,” he said. Officials at the Buenos Aires National Wildlife Refuge have not yet taken a formal position, but manager Sally Gall recently wrote Kinder Morgan saying a pipeline of this nature would clash with the refuge’s mandates. It is unclear what Kinder Morgan would do if both proposals were denied and what, if any, action Mexico might take to relocate its source for natural gas. Repeated inquiries to Pemex and Mexico’s Secretary of Energy were not answered this week. Richard Wheatley, who as manager, corporate communications and public affairs, represented Kinder Morgan at the two public hearings to date, said the company had no comment on goings-on with the company’s customers in Mexico. Still, Arizona is not the only place along the border where natural gas would be available. Natural gas now flows to the border near Yuma and at several places in California. Another pipeline enters Mexico at Naco, Sonora, near Douglas and serves both a copper mine in Cananea and an industrial park in Hermosillo that is home to Ford Motor Co.’s stamping and assembly plant.

InsideTucsonBusiness.com

JULY 13, 2012

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8 JULY 13, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

JULY 13, 2012

PROFILE

I-10 Self-Storage is a family affair I.T. Genius

The

best employees you never had.

BIZ FACTS

I-10 Self-Storage 3273 N. Freeway Road (520) 314-0301 Office hours: 9 a.m.-5 p.m. Mondays through Saturdays Gate hours: 7 a.m.-6 p.m. Mondays through Saturdays; 10 a.m.- 6 p.m. Sundays stuck with them and kept the business successful. While things are going well now, Joanne explained they still want the business to grow. In the future, they plan on building commercial office spaces on their front lot. “After the construction on the highway is finished people will be driving by our place all the time. It will be very convenient,” she said. I-10 Self-Storage has 350 units in a range of sizes and about 75 spaces in the yard for RVs, boats and other vehicles. The business offers move-in specials, promotions and will match lower prices in town (if you can find any). They don’t sell moving supplies but offer their customers clean, secure storage with the best possible customer care. At the end of the day, that’s really what it’s all about for the Herder women. They want to take care of clients the way they

George Howard

By Kaity Sitzman Inside Tucson Business Walk in the front door of the office at I-10 Self Storage and you’ll most likely be greeted by owner Joanne Herder, her daughter Jenna, or one of their three dogs. On the wall above the front desk is a row of old family photos the Herders proudly display. Take a peek back though the doorway and you can catch a glimpse of what could be the living room in your own home. There’s a couch with pillows, some side tables decorated with your grandmother’s old lamps, and even more family pictures covering the walls. Family has been the heart and soul of this business from the very beginning. Years ago, Joanne’s father, Jim Kesicki, had a plot of land and her brother had the idea to build a self-storage unit on the property, located on the west side of Interstate 10 about half-way between the Prince Road and Miracle Mile exits. In 1981, Jim brought that idea to life and built the business for his son. Over the past 30 years it has been operated by various members of the Kesicki family, but in 2007 Joanne and her husband, local construction and development businessman Pete Herder became the sole owners. In the past, they hired managers to run the daily operations, but two years ago they decided that it would be best to keep everything in the family. That’s when their daughter Jenna stepped in to help her mother run the business. That wasn’t always the plan; it was something she fell into. “We decided to run it ourselves and run it right,” said Jenna, who added she’s never been happier. It’s been a big commitment, but they’ve loved every second of it. I-10 Self-Storage was one of three original storage businesses in the Tucson region. Over the years they have faced some challenges, most of them concerning their location. Thirty years ago, the area around their business was far less developed than it is these days and it was almost considered “out of town.” Getting people to store with them wasn’t easy, but business grew through word of mouth. They knew that customer service would set them apart from their competitors and to this day, they pride themselves on customer care. Both women said that it has really made a difference when dealing with construction activity surrounding their business. The Arizona Department of Transportation has been widening Interstate-10 and reconstructing the Prince Road traffic interchange in an attempt to address traffic congestion. It has made business access difficult, but their loyal customers have

Manager Jenna Herder

would take care of their own family. “It’s not just a business, it’s a second home, a family history,” said Jenna. It’s not only part of their own history, but part of Tucson’s history. It has been a small family business since the beginning and they plan to keep it that way. The family built the business from the ground up, so it has a lot of sentimental value. Working together has made the pair’s relationship stronger. “I couldn’t ask for a better job. We are mother and daughter, but we are also best friends,” said Jenna. “We’re a team, we support each other 100 percent.” Customers are treated like family at this home grown business and that’s the way the Herders plan to keep it.

Contact reporter Kaity Sitzman at ksitzman@azbiz.com

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10 JULY 13, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Put off by slogan, I missed great food at The Parish

Joe Cocker and Huey Lewis on stage Sunday at Casino Del Sol

One of the advantages of summer is the slower pace around Tucson. Perhaps it’s just the heat zapping our energy. Regardless, it is a good time to go out and explore restaurants you may not have visited before as I did with friends recently at The Parish. They call themselves a “Southern Fusion Gastropub.” One of my peeves has to do with restaurateurs trying to describe their places with marketing prose that only adds confusion to whatever it is they do. It’s “comfort” this or “gastro” that with a mix of “modern” and a pinch of “fusion.” Unfortunately that happened to me regarding The Parish. And all this time I was missing some really good food. We started the evening with some bacon popcorn, which was aptly described on the menu as addictive. It was slightly salty, lightly buttered and an absolute crowd pleaser. The crawfish hushpuppies with green onion dip was a hit, too. Another delicious appetizer was a goat cheese relleno served with a balsamic reduction, pico de gallo, bacon and fresh cilantro. For my money, this dish wasn’t Southern, fusion or gastropub, but it sure pleased. So too did the French Quarter gumbo with chicken and andouille sausage. But for as good as all these were, the most pleasing dish of the night was the lamb chorizo flatbread with herb aioli, kalamata olive tapenade, fresh cilantro and goat cheese. In addition to a full complement of beer, wine and spirits, The Parish specializes in house infused spirits such as

basil vodka, cucumber tequila, cinnamon bourbon and cucumber gin. Open daily from 11 a.m. to midnight, The Parish is slightly hidden at the north end of a MICHAEL LURIA strip center on the northwest corner of Oracle and Orange Grove roads but it’s well worth the effort to seek it out. • The Parish, 6453 N. Oracle Road — www.theparishtucson.com — (520) 797-1233

More ‘happy’ at North North at La Encantada has expanded its happy hour to run from 3-7 p.m. weekdays with a reverse happy hour starting at 10 p.m. Fridays and Saturdays. During those hours, there are specials on antipasta and salads, ranging from $3 to $7, with beer priced at $2.50 and well drinks at $4. Also, through Sept. 11, North is having Monday night pizza parties where you can enjoy a salad, pizza and two glasses of wine (from a special menu) for $25. • North Modern Italian Cuisine, 2995 E. Skyline Drive in La Encantada — http:// foxrc.com/north.html — (520) 299-1600.

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

AVA Amphitheater at Casino Del Sol, 5655 W. Valencia Road, has a great double bill at 8 p.m. Sunday (July 15) featuring the legendary Joe Cocker with opening act 1980s favorite Huey Lewis and the News. Regular ticket prices range from $40 for the lawn area and $55 for the pavilion to premium priced tickets at $125. Buy them online at www.casinodelsol.com/ava-amphitheater.

performing their flamenco fusion. Tickets are $9 adults, $4 children with discounts for members of the botanical gardens. Buy tickets at the door. HERB STRATFORD

More music The summer concert series at Z Mansion, 288 N. Church Ave., continues tonight (June 13) with “Classic Country Jukebox” featuring performances of classic country music from the 1920s through the 1990s performed by Robert Shaw and Kaci Bays. I’ve written about this series previously. Patrons can either attend the concert for $23, or make an evening of it, and have dinner at the mansion with the concert for a combined ticket price of $45. Doors open at 6 p.m. and dinner is at 6:30. Buy tickets at lonelystreet.showclix.com or call 1-888-718-4253.

Music and art The once-a-month “Twilight Third Thursday” at the Tucson Botanical Gardens, 2150 N. Alvernon Way, takes place from 5-8 p.m. July 19. The program is a family-friendly hands-on event with music, art, food and drink. This month’s musical performers are the Gipsy Kings,

Film

It’s slim pickings this week for new releases at the multiplex. The only major studio release is the next chapter in the “Ice Age” animated series titled “Continental Drift.” At the Loft Cinema, 3233 E. Speedway, a few films of note are opening this weekend including the French drama “Polisse” about detectives in the French version of Child Protective Services and the stresses they face. Also at the Loft is the edgy horror flick “Asylum Blackout” about four cooks who get trapped in an insane asylum during a power failure and end up facing un-medicated homicidal inmates. It’s quite the thrill ride.

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

InsideTucsonBusiness.com

JULY 13, 2012

SMALL BUSINESS

It’s not about what you make, it’s how much you keep I have enjoyed the good fortune of working with great people during my career. Many of those people dedicated their time, talents and leadership serving on the boards of directors of numerous organizations in which I have been involved. Having access to, and working with, community leaders brings with it many positive experiences, especially for young professionals. I became good friends with many of those people. Some became mentors. I learned something from each one of them. I remember one man for his one-liners. He had some good ones and their timeliness was just as good as the delivery. He was old school to say the least, and was as genuine a person as I have ever met. One of the lessons he taught me came just before the economic recession hit in 2008. At the time, every revenue was being exceeded and little attention was being paid to expenses. “It’s only money…we’ll keep making more,” was a typical Gen-X response at the time, which was the result of just naïve arrogance. Before my ignorant bliss could continue, the man cut me off and said, “It’s not what you make, it’s what you keep.” That statement has resonated with me time and time again, especially during the last four years when the ultimate reality check crashed the party uninvited and decided to stick around for a while. I clearly remember when the good times came to a screeching halt. It felt like the music stopped, the party ended, and all that was left were the caterers and band who needed to be paid. When revenues dried up, we all began to look at our reserves and wondered how long would it be before the next wave would arrive - three months, six? Now, here it is four years later and many of us feel like we have aged in dog years. The upside of that could be that we have perhaps gained 28 years of life experiences. During this time, we have become so much more aware of expenses. I guess that’s what happens when the focus shifts from hitting it out of the park to finding yourself in survival mode and trying to preserve what is left. I know many of you reading this are nodding your head because you know exactly where I’m coming from. Fortunately, businesses today have more options than ever to help reduce costs and keep more money. This is especially true for small businesses that previously did not have the purchasing power

that exists for them today. Trade associations and chambers of commerce across the country are now focused on leveraging the collective purchasing power JERRY BUSTAMANTE of their members to provide them with lower pricing and better terms. Vendors of products and services like it because these associations provide them friendly access to their target market. They sell their product, and the discounts they give are recouped from decreased marketing expenses. It’s a win-win for all concerned. Like many trade associations, the Arizona Small Business Association (ASBA) has gone through some changes in recent years. What came out of it was a robust program to help members save money on many of the products and services they are already spending money on. ASBA now has a subsidiary called Arizona Small Business Benefits that leverages the purchasing power of thousands of small businesses across the state to help them reduce costs and increase their bottom line. Many of these savings are on essential business products and services such as insurance, credit card processing and office supplies. Each vendor is carefully selected to provide pre-negotiated pricing. ASBA’s mission has evolved, and one of our top priorities these days is to help businesses save money. We also recognize our good fortune to have so many well-run chambers of commerce, trade groups and leads groups in Arizona helping local businesses make money. We support their efforts and encourage you to belong to your local chamber of commerce and the trade association that represents your industry. These organizations work and they help you make more money. Moving forward, let’s keep in mind the lessons learned during the economic recession and take advantage of opportunities to save your business money. It’s not what you make, it’s what you keep.

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12 JULY 13, 2012

INSIDE TUCSON BUSINESS

TOURISM IN TUCSON

Film incentives could bring blockbuster business to region As director of the Tucson Film Office at the Metropolitan Tucson Convention and Visitors Bureau, I love my job. My mission is to market Tucson and Southern Arizona as a production location for feature films, television series and commercials for their potential economic impact. It’s like fishing — but in a multi-billion dollar film industry pond where sharks, like Disney and Warner Bros., swim with the smaller fish like cable networks, independent filmmakers and commercial production companies. My department lures the bigger fish with photos of great Southern Arizona locations, heroic tales of our local crew base and our willingness to go the extra mile. Once they’re hooked, we get down to the business of finding lodging, facilitating street closures, securing permits and dealing with a variety of unusual requests. Need a local goat wrangler? Check. A skydiving stunt coordinator? Check. Can we blow up that store front on Congress Street? Umm…let me check. The Tucson Film Office caught plenty of fish this past fiscal year. We facilitated more than 60 projects that added up to thousands of hotel room nights and almost $6 million in direct expenditures that resulted in $8.9 million in estimated economic impact. Of that, 40 percent came from TV commercials, including two that ran during Super Bowl XLVI. Another 30 percent percent came from reality television shows, including multiple episodes of the Food Network’s “Chopped,” TNT’s “The Great Escape” and single episodes of programs for Discovery, National Geographic, A&E and BBC, to name a few. The remaining 30 percent was an eclectic mix of documentaries, music videos, short films and print catalog shoots.

What’s missing? There was not one shark in the net. Most of the large-scale studio projects we tried to hook were landed instead by New Mexico or Utah, who had statewide SHELLI HALL motion picture tax incentive programs to use as bait. In fact, today more than 35 states and several countries have programs to lure “location filming,” a highly competitive, multi-billion dollar global industry that not only brings jobs and economic impact to a region but has the potential to increase future tourism revenues as well. Arizona does not have such a program, but not for lack of trying. For the second year in a row, an Arizona Motion Picture Tax Incentive Bill (HB 2127) wound its way through the Legislature only to end up on the House cutting room floor, despite success in the Senate; hence, Arizona will not net any big-budget studio features or longrunning TV series again this fiscal year. HB 2127 would have given qualified studios and production companies who filmed here 20 percent back on their Arizona taxable expenditures. It would have given them a five percent bump for hiring resident crew and/or for investing in Arizona-based studios. It would have allowed Arizona a chance to compete with the 35 other states — particularly our neighbor to the east, New Mexico. Since 2008, New Mexico has aggressively marketed a 25 percent rebate and, as a result, they’ve documented more than $200

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showing positive returns, despite Disney executives coming to the state capitol to say they want to bring multimillion dollar projects here, there’s no political will for a film incentive program among House leadership and the Governor’s office. There is still, however, plenty of will in the Arizona film and tourism industries, in our bureaus, chambers of commerce and city and county governments. There is still will among those in the construction trades, in our universities and community colleges and especially in our residents who know that Arizona desperately needs the economic boost this, virtually recession-proof, green industry can bring to a region. We’ll be working on the sequel. Look for it in 2013.

Contact Shelli Hall, director of the Tucson Film Office. at shall@visittucson.org. The film office’s website is www.filmtucson. com . This monthly column is prepared by the MTCVB.

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million in direct spending each year. Plus through their Workforce Development and Film Crew Advancement Programs, they’ve significantly increased job opportunities for New Mexico residents. This year there was a spectacular grassroots effort to get HB 2127 passed, and Southern Arizona led the way. The list of Tucson, Oro Valley and Pima County businesses, government officials, institutions, periodicals and the hundreds of private citizens who asked legislators to support the bill is long and impressive. Our efforts were effective, as nearly every Southern Arizona Senator voted in favor of the legislation and many of our representatives in the House promised their votes — had the bill made it that far. Why then, for the second year in a row, did the Speaker of the House decide to hold the bill and not allow a floor vote? I can only speculate, but what seems obvious to me is that despite vast statewide support, despite economic impact studies

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InsideTucsonBusiness.com

JULY 13, 2012

PR CORNER

What your PR professional does for the money you pay You’ve made the decision to retain the services of a public relations professional. Public and media relations is a service rendered by consultants and it’s probably foreign territory to you, so it’s important to have a clear understanding of work product, expectations, and billing models before you begin. PR billing is based on the time and effort needed to craft a campaign, complete the work, and meet your goals and objectives, often including researching and other “behind the scenes” work. PR is billed in several ways: an hourly rate; a base fee plus an hourly rate; a flat project fee; or by monthly retainer. There is a “pay for performance” model which is paid on results only, but this often proves to be more costly to the client. Before beginning, discuss your budget and ask for an estimate of time and expenses. Agree on which billing model will be used. Remember that even if your PR professional is freelance or self-employed, they still have overhead costs, professional fees, taxes, insurance and other expenses to pay. Understanding the steps involved in any PR project may help you understand the billable time involved. Time is spent learning about you, your business, service, or product. Target market(s) must be identified using geographic, demographic, psychographic, or a combination of factors. If you don’t have this information, research will be necessary. This will save you time and money in the long run. Even a simple press release must be targeted. Skipping this step is like throwing darts blindfolded. You’re lucky to hit the wall, let alone hit a bullseye. Creative campaign(s) are developed because each media outlet has a different editorial focus, guidelines, editorial calendars, and unique audiences, several approaches or media angles may be necessary. For example, a pitch to a trade publication on a manufacturer’s new product may be technical whereas a pitch on the same product to a consumer publication would be focused on end-user benefits. Today there are thousands of media outlets including TV, radio, consumer print, trade print, Internet, blog sites, newspa-

pers, newsletters, and more to choose from. To reach your target and meet your goals, time may be spent determining the best options. It makes no sense to CAROL SAFERIN send information on a new product for women’s hygiene to a publication whose editorial focus is woodworking. Once the media is identified — especially if you are hoping for a feature article — further research may be necessary to make sure they haven’t done a similar story in the past year or two (media outlets don’t usually revisit a story they have recently done) and that your story or product matches their editorial focus as well as determining where the story best fits. Determining who at each media outlet to pitch can be challenging since each outlet titles their staff differently. Sometimes the same title at two different outlets can have entirely different responsibilities. TV and radio shows can have many producers. The actual pitching and follow-up process involves calls and emails. It may take several outreaches and several different ideas before securing your article, interview, or segment. Your PR professional is your partner in this journey. Working through billing issues before beginning helps avoid questions or problems as you travel this road together. No matter who you choose or how they bill, their main goal is to generate excellent results for you, stay within your budget constraints, and to develop a long-lasting relationship with you.

Contact Carol Saferin, president of Mart Saferin & Associates, at carol@ martsaferin.com . She is a member of the Public Relations Society of America, Southern Arizona chapter, whose members produce this monthly column.

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14 JULY 13, 2012

INSIDE TUCSON BUSINESS

MEDIA

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Good Morning Tucson is proud to present

Nike The Brand Experience Mr. Hoppes, current Nike executive, will share the Nike culture, Nike thinking and Nike vision. Hear about Nike’s brand identity and what keeps them at the top of the consumer’s mind. Also learn how these values can be applied to your business, regardless of size or industry.

Loren Hoppes Thursday, August 23 The Westin La Paloma Resort & Spa 3800 E. Sunrise Drive

RSVP by Friday, August 17 TucsonChamber.org

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8:00 am Breakfast & Program $45 Tucson Metro Chamber members $65 Non-members Presenting Sponsor

Savannah Guthrie knew what she wanted and went for it By David Hatfield Inside Tucson Business She never asked for it — nor was I dumb enough to offer it — but if she had taken my advice, Savannah Guthrie wouldn’t have started this week as the new co-anchor of NBC’s “Today” show. Instead, I thought she could have been our star local news anchor. Shows you what I know. Guthrie was our weekend news anchor at KVOA 4 for about five years starting in 1995. We knew from audience research at the time that Guthrie was destined for big things in a broadcast journalism career. I remember our general manager, the late Jon Ruby, would sometimes scratch his head over her on-air wardrobe but audiences took a liking to her. In my mind I believed Guthrie was on a path to climb the news anchor ranks at KVOA — despite some heavy local hitters already anchoring the high-profile newscasts. So I was shocked when in 2000 Guthrie decided to toss that aside and go for a law degree at Georgetown University. Here I thought she was giving up a sure thing in an unsure industry. And for what? I remember asking her what she intended to do with a law degree. She envisioned a day when she could combine her knowledge of the law and her media career. Ruby connected Guthrie with the general manager at the NBC-owned station in Washington, D.C., where she worked for a couple of years. She parlayed that into a job with Court TV while at the same time working for a law firm in Washington. Then in 2008, she joined NBC News, where she was a White House correspondent and chief legal correspondent before joining the “Today” show last year. Since she left Tucson, I’ve only talked with her twice — once when she came back a few years later to visit KVOA and then last year when she came back to give the commencement speech at the University of Arizona. I was traveling when the turmoil hit two weeks ago over Ann Curry leaving and Guthrie being tapped to be the new main co-host of “Today.” Reports I read referred to the meteoric rise in Guthrie’s career. I’m not sure that was the case. What audiences across the nation saw this week on “Today” are the same kinds of things Tucson viewers saw in Guthrie more than a decade ago. She’s smart. She’s genuine. She also doesn’t seem to take herself too seriously. That’s why audiences like her. A Tucsonan succeeds. Good for her.

Names in news Ryan Clune arrives next week as the new director of sales for Clear Channel

Media and Entertainment’s Tucson radio stations. Clune comes to Tucson from Denver where he has been local sales manager for Clear Channel’s seven-station group there. In Tucson, Clune replaces Steve Clement who in March moved to Clear Channel’s Phoenix group. Since then there have been other management changes, including the arrival last month of Glynn Alan in the newly created regional market manager position that also has him overseeing the company’s stations in Las Vegas and El Paso from Tucson. There have been some changes in responsibilities at Good News Communications where Christina Willits is now operations manager for the group’s four Tucson radio stations and Ray Alan is operations assistant. Long-time local broadcaster Ed Alexander has been named promotions director for the company’s news-talk station the Voice KVOI 1030-AM and pop classics station KCEE 690-AM. He continues to produce KVOI’s early morning “Wake Up, Tucson” talk show hosted by Chris DeSimone and Joe Higgins and is program director of KCEE. Meanwhile Terry Lafferty, who had been promotions director for all the stations, will now focus on the company’s two Christian stations, talk outlet KGMS 940-AM and contemporary music station K-Love KLTU 88.1-FM as well as church outreach. Kayla Anderson has been named the new weekend sports anchor at KGUN 9. She is due to start Aug. 20. Anderson is coming from Missoula, Mont., where for the past three years she has been sports director at the NBC affiliate. Before that she worked for about a year and a half as a sports reporter at KXLY, the ABC affiliate in her hometown, Spokane, Wash.. Anderson replaces Jake Knapp who left KGUN at the end of May to return to Phoenix. Rob O’Dell, who made a name for himself as the Arizona Daily Star’s reporter covering Tucson city government for six years, is leaving Tucson to take a job as a reporter for the Arizona Republic in Phoenix starting next month. Last October O’Dell was named the Star’s “computer assisted reporter,” in which he crunches data to seek out trends. Before coming to the Star in 2005 he worked for the North County Times in northern San Diego County and the Hamilton Journal-News in Ohio.

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

InsideTucsonBusiness.com

JULY 13, 2012

BRIEFS GET ON THE LIST

Next up: Universities and colleges, Specialty and technical schools Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are: • July 20: Public school districts, Private elementary schools, Private secondary schools, Charter schools • July 27: Universities and colleges, Specialty and technical schools • Aug. 3: Health maintenance organizations, preferred provider organizations and indemnity plan providers, Supplemental plans and Childcare providers • Aug. 10: Business and industrial parks, Commercial office, Shopping centers • Aug. 17: Asset management firms, Aeronautical firms If your business fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

NEW IN TOWN

IT firm Integrilogic moves to larger digs Integrilogic Corporation has moved into a larger building located at 1931 W. Grant Road, Suite 130. Integrilogic was established by Bruce Groen in 1999. The company specializes in information technology, networking administration, managed services, help desk, hardware and software sales and backup disaster recovery. Its website is www.integrilogic.com.

MANUFACTURING

Raytheon ‘kill vehicle’ gets $636M contract Raytheon Missile Systems will develop its Exoatmospheric Kill Vehicle (EKV), a device meant to intercept and destroy incoming missiles as a major component to Boeing Co.’s gound-based mid-course defense program The contract is worth $636 million to Raytheon, according to an announcement this week at the Farnborough International Airshow in England. Raytheon says the EKV uses “an infrared seeker in a flight package... to detect and discriminate the incoming warhead from other objects.” The vehicle is already deployed and operational and has had eight successful intercepts. However, a failed intercept test in December 2010 prompted the Missile Defense Agency to halt shipments of

it, according to congressional reports by the Government Accountability Office. Under the new contract, development and testing of the EKV will continue through November 2018.

UTILITIES/ENERGY

Solon building solar water treatment plant for Gila Bend Solon Corp., headquartered at 6950 S. Country Club Road, has begun construction on a 460-kilowatt photovoltaic system for the Town of Gila Bend’s reverse osmosis water treatment facility. Once completed, it’s anticipated Gila Bend’s energy usage for the treatement facility will be reduced by 86 percent. Solon is engineering, designing and constructing the fixed-tilt system which it expects to complete this year. Once it’s finished, Solon will continue to operate and maintain it for the town. Solon built a 21-megawatt, single-axis tracking system for Gila Bend last year.

INFORMATION TECHNOLOGY

Nextrio seeks nominations for administrator award Tucson-based information technology consulting firm Nextrio is looking for nominations for the best computer systems administrator in Southern Arizona. The deadline for submissions is noon July 24. Then, on July 27, Tucson System Administrator Day 2012, the winner will receive a $500 American Express gift card and the nominator will receive a $100 gift card. The Tucson celebration, sponsored by Nextrio, is being held in conjunction with the national System Administrator Appreciation Day, celebrated annually on the last Friday of July.

SMALL BUSINESS

Federal procurement is topic for chamber workshop

ter by Tuesday (July 17) at www.TucsonChamber.org.

LEGAL

GHCC Care Center is busted for selling pot A two-month investigation by the Counter Narcotics Alliance resulted in the arrest of two men and two women at GHCC Care Center, 3359 N. Freeway, all of whom were charged with one count of unlawful possession of marijuana and one of count of unlawful possession for sale. The arrests took place Tuesday (June 10) as officers served a search warrant at the business. Additionally, several pounds of high-grade marijuana were seized and an illegal indoor marijuana grow was found within the facility. Law enforcement officials said they planned to release the names of the arrested individuals on Thursday. GHCC stands for Green Halo Caregiver Collective. The facility was located on the west side of Interstate 10 south of Prince Road.

U.S. goes public to find border agent’s killers Federal officials are offering a $1 million reward for information leading to the arrests of four Mexican nationals charged in the

shooting death of U.S. Border Patrol Agent Brian Terry near Rio Rico and whose killing has since been linked to the notorious “Fast and Furious” gun-smuggling operation. The million-dollar bounty offer was made Monday as Justice Department officials unsealed an indictment charging five men with involvement in the murder during a December 2010 shootout in Arizona near the Mexican border. One of the five is already in federal custody. It is unclear why Justice Department officials decided now to make the nine-page indictment public. A federal grand jury returned the charges in November. Such charges are routinely kept under seal to avoid tipping off indicted suspects before federal agents can locate and arrest them. “This investigation has previously resulted in one defendant being charged with Agent Terry’s murder and taken into custody,” Holder said in a statement. “Today’s announcement reflects the department’s unrelenting commitment to finding and arresting the other individuals responsible for this horrific tragedy.” The attorney general added: “Agent Terry served his country honorably and made the ultimate sacrifice in trying to protect it from harm, and we will stop at nothing to bring those responsible for his murder to justice.” The Mexican nationals charged in the murder were allegedly part of an armed

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The Tucson Metro Chamber’s Military Affairs Committee will hold a workshop next week called “Growing Business through Federal Procurement.” The workshops are designed to help businesses understand the federal purchasing process. It will take place from 8-9:30 a.m. Thursday (July 19) at the Tucson Metro Chamber’s offices, 465 W. St. Mary’s Road. Items to be covered in the workshop: • The language of federal procurement • How to register as an approved vendor for Davis-Monthan Air Force Base and other federal agencies • How to access and take advantage of purchasing notices • Strategies to position your company in partnership with other approved vendors. The workshop costs $20 for chamber members and $99 for non-members. Regis-

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16 JULY 13, 2012

INSIDE TUCSON BUSINESS

BRIEFS group that robbed marijuana traffickers as they transited the border region. Two assault weapons recovered at the scene were later traced to the Fast and Furious undercover operation.

Former Pima judge is new U.S. Attorney for Arizona Pima County Superior Court Judge John S. Leonardo is the new U.S. Attorney for Arizona after being sworn in July 3. He was confirmed June 29 by the full U.S. Senate. Leonardo fills the federal prosecutor’s

job held by former U.S. Attorney Dennis Burke, who resigned in August during the investigation of Operation Fast and Furious, the botched “gun-walking” operation in the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Phoenix office. Leonardo was a Pima County Superior Court judge from 1993 until February this year, when he retired from the bench. From 1973 to 1982, he was an assistant U.S. attorney for the Northern District of Indiana, before becoming an assistant U.S. attorney for Arizona. He held that job from 1982 to 1993, when he became a judge.

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The U.S. Attorney for Arizona has three responsibilities, according to the office’s website: prosecuting federal criminal cases; prosecuting civil cases brought by the United States or defending the government from civil suit; and collecting federal debts that are “administratively uncollectible.”

ENTERTAINMENT/SPORTS

Tucson Parks Foundation sponsors ballpark night The Tucson Parks Foundation is spon-

soring its second annual Night at the Ballpark with the Tucson Padres and their game against the Reno Aces, at 7:05 p.m. Wednesday (July 18) at Kino Stadium, 2500 E. Ajo Way. Discounted general admission tickets are available for $4 from the Tucson Parks Foundation website, www.tucsonparks.org. All fundraising from this event helps to support Tucson Parks and Recreation KIDCO programs.

HUMAN RESOURCES

Military veterans get workforce center On Monday (July 16), Pima County will open the nation’s first workforce center for military veterans at its Kino Service Center, 2979 E. Ajo Way. Under program manager Art Burrola, the Kino Veterans Workforce Center will work with the business community to help veterans find jobs and receive training, benefits and support services. The center is a partnership of the Pima County One-Stop Career Center with the U.S. Departments of Defense and Veterans Affairs, the Arizona Departments of Veterans Services and Economic Security, Pima Community College, Community Partnership of Southern Arizona, the Pima County Health Department and Old Pueblo Community Services. A grand opening will be held at a later date. Companies that hire unemployed veterans by Jan. 1, 2013 may qualify for up to a $2,400 Returning Heroes tax credit or up to a $9,600 Wounded Warrior tax credit when certain conditions apply. Burrola can be reached is at aburrola@pima.gov or (520) 798-0508.

CIVIC

Oro Valley chamber seeks Pinnacle Award nominees The Greater Oro Valley Chamber of Commerce is looking to recognize business achievement and community contributions with its annual Pinnacle Awards to be given out at a breakfast Aug. 23. Nominations are now open from small, mid-size and large businesses as well as community leader and nonprofit awards. Dave Perry, president and CEO of the chamber, says this year’s nomination process has been simplified to one page and a paragraph about a person or business that should be recognized. The nomination form is online at www.orovalleychamber.com, or at the chamber office, 7435 N. Oracle Road, Suite 107. The deadline for nominations is July 20. Registration for the Aug. 30 breakfast is also open. Greg Byrne, director of athletics at the University of Arizona, will be the guest speaker. To attend, contact the chamber by emailing Alex@orovalleychamber.com or call (520) 297-2191. Cost is $30 per person.

InsideTucsonBusiness.com

JULY 13, 2012

PEOPLE IN ACTION NEW HIRES The Community Food Bank of Southern Arizona has hired Sio Castillo as its major gifts officer. Castillo formerly was community outreach director to former Tucson Mayor Bob Walkup. She has a bachelor of science in health service administration from The University of Arizona and a masters of public administration in nonprofit management from Troy University in Troy, Alabama. Community Food Bank of Southern Arizona has hired Michael Mandel as director of development. Mandel has served as director of housing services for the Primavera Foundation, vice president of external affairs for Planned Parenthood

of Southern Arizona and communications director of Southern Arizona Center Against Sexual Assault. He has a bachelor of arts in drama from Ithaca College in Ithaca, New York, and will complete his master of business administration from the University of Arizona Eller College of Management in November. Doug Huie is now a project manager for Kittle Design and Construction. Huie has more than 30 years of construction and architectural collaboration experience. Handi-Dogs has hired JoAnn Turnbull as president and CEO. Turnbull has extensive senior management experience in both for-profit and nonprofit work. She most recently

SIO CASTILLO

MICHAEL MANDEL

held a senior leadership position with Pet Partners (formerly known as Delta Society), an international non-profit focused on how animals improve peopleâ&#x20AC;&#x2122;s health and well-being. ABCO Solar has hired Steve Hopkins. Hopkins has been as an electrician since 1989. He owned an operated an electrical contracting business for eight years. Hopkins attended Alpena

DOUG HUIE

JOANN TURNBULL

LLC, has been elected president of Catalina Rotary Club of Tucson. The Catalina Rotary Club also has elected its officers for 2012-2013. They are: Jo Anne Westerman, president-elect; Steve Pender, secretary; Kathy Ramert, treasurer. Board members are Carrie Allen, Al Chesser, Paul Bennett, Bob DeLaney, Kevin Horstman, and Bob Stofft.

{YOUR NAME HERE} To announce a professional promotion, appointment, election, new hire or other company personnel actions, fax press releases to (520) 295-4071, Attention: People; or email submissions to pmcnamara@azbiz.com. Include an attached photo at 300 dpi. Community College in Michigan and graduated with a certificate as a utility technician. Hopkins also earned a diploma from Pima Community College after completing

a five-year electrical apprenticeship program. ELECTIONS Dan Blumenthal, of Blumenthal Design Group

The Greater Tucson chapter of the National Association of Women Business Owners has elected its board for 2012-2013. The leadership team includes: Dianne Kelley, Sandbroo Benefits Group LLC, president; Patty Richardson, Casa Linda Designs, LLC, presidentelect; Beth Dannheim, Beth Danheim Agency, Inc., secretary; Reba Kalil, Kalil & Associates, treasurer. Board members at large are Marian Abram, Karp & Weiss; Jan Acorn, Gateway Destinations, LLC; Rosemary Beck, TimeTrak Systems of AZ; Colleen Concannon, The Historic Manning House; Korina Gregg, AIM Solutions; Ellen Kirton, EffortlessHR; Roberta Latham, Primerica, Inc.; Margaret Roberts, Adult Care Hunters LLC; Bobbi

Still, Affinity for Design; and Jan Woods, Veterinary Specialty Center of Tucson. Other board members include: Deborah Alter, Alter & Alter, CPAâ&#x20AC;&#x2122;s, PC; Morella Bierwag, Letâ&#x20AC;&#x2122;s Go Communications, LLC; and Michelle Martin, Martin Insurance Consultants. ACCREDITATIONS Stantec is pleased to announce that James Wright has received his professional engineering license in Arizona. Wright is a civil engineer with six years of professional experience in the design of residential, commercial, retail, educational and industrial developments throughout Southern Arizona.

CALENDAR SPECIAL EVENTS

Marana Aerospace Solutions - Dinner Southern AZ Logistics Education Org. (SALEO) Wednesday (July 18) 5:30 to 8:00 p.m. Viscount Suite Hotel 4855 E. Broadway RSVP by July 17 noon: al@ saleo.org or (520) 977-3626 Cost: $30 ($25 members & 1st-timers, $10 students)

Nike, The Brand Experience Thursday (Aug. 23) 7 to 10 a.m. The Westin La Paloma Resort & Spa 3800 E. Sunrise Drive Join the Tucson Metro Chamber and Pima Federal Credit Union in welcoming Nike executive, Loren Hoppes to hear about the Nike brand identity. Contact: Arlene achiovet@ tucsonchamber.org 792-2250 x135 Cost: $45/members; $65/non/members

www.tucsonchamber.org REGULAR MEETINGS

Inside Connections Second and fourth Wednesday, 7:15 a.m. Home Town Buffet 5101 N Oracle Road RSVP: Eric Miller at (520) 979-1696 Institute of Management Accountants Third Thursday, (September through May) 6:30

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RSVP: Kay at franklin@ dakotacom.net or (520) 883-1819 Cost: $18 members, $20 nonmembers, includes dinner â&#x20AC;&#x153;Real Estate Investment Planâ&#x20AC;? Keller Williams Southern Arizona 1745 E. River Road, Ste. 245 Third Tuesday 6 p.m. Workshop for individuals considering investment RSVP by noon Mondays (520) 909-9375

Kiwanis Club of Oro Valley Wednesdays, 7 a.m. Holiday Inn Express 10150 N. Oracle Road Info: jepsenaz@comcast.net Cost: $8 LeTip Midtown Every Tuesday, 7:01 to 8:31 a.m. El Parador Restaurant 2744 E. Broadway RSVP: (520) 296-9900 Cost: $10

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18 JULY 13, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Could your legacy benefit from a repositioning strategy? You’ve worked hard and planned diligently to accumulate wealth for you and your family. In fact, you have accumulated sufficient assets to see you through retirement. Yet, assets that you don’t use become part of your estate and are taxable — at rates as high as 35 percent (tax rate set to expire on Dec. 31, 2012). Fortunately, you may be able to implement one of several strategies that could help reduce your potential estate tax liability and maximize the legacy you plan to leave to your loved ones. Many individuals are incorporating an asset repositioning strategy — using income from existing assets to purchase life insurance within a trust — into their overall wealth management plan. If implemented correctly, the repositioning strategy can potentially provide loved ones with an inheritance that is not subject to estate or income tax. Life insurance is a key element of most successful asset repositioning strategies. Unlike stock, real estate or other assets that fluctuate in value, life insurance generally offers the ability to leave heirs a specified amount and provides a death benefit that is usually tax-free from income taxes. However, since life insurance, like your other assets, is considered part of your estate and is therefore subject to estate taxes, you may be able to reduce any potential estate tax liability by establishing an Irrevocable Life Insurance Trust (ILIT) and naming it both owner and beneficiary of your life insurance policy. Your heirs serve as beneficiary of the trust itself. If properly structured, an ILIT may protect your assets from creditors and legal judgments as a result of divorce, lawsuits and bankruptcy proceedings so you can be sure that your assets will pass to your loved ones without conflict or diminution. A financial advisor can help you determine whether an asset repositioning strategy is suitable given your wealth management objectives. The type of repositioning strategy you choose will depend on two main factors: your individual wealth planning goals and the assets you own. Generally, any incomegenerating asset can be used in a repositioning strategy, however, the most commonly repositioned assets are deferred

W. DAVID FAY

annuities, cash, certificates of deposits (CDs), money market accounts/funds, traditional Individual Retirement Accounts (IRAs), municipal bonds and qualified plans, such as 401(k) and

403(b) accounts. It is important to remember that not everyone with income-generating assets may be suitable for a repositioning strategy. Additionally, asset repositioning strategies are most successful when incorporated as part of an overall wealth management approach. You might consider an asset repositioning strategy if: • You have met your retirement savings target and have additional assets that you do not need for retirement income • You have a potential estate tax liability • You want to reduce the impact of income taxes and estate taxes on the assets you leave to your loved ones • You want more control over who receives your assets and how those assets are used. Your window is open, but not indefinitely. After Dec. 31, 2012, Congress may keep current gift and estate tax exemption limits where they are, raise them, lower them or eliminate them altogether. Now is the time to consider strategies that may help you reduce your potential tax liability and enable you to transfer wealth to future generations.

Contact W. David Fay, a second vice president in wealth management and financial advisor with Morgan Stanley Smith Barney, at http://fa.smithbarney.com/ thefaymillergroup or (502) 745-7069. The securities/instruments discussed in this material may not be suitable for all investors. Any particular investment should be analyzed based on its terms and risks as they relate to your specific circumstances and objectives. Tax laws are subject to change. Morgan Stanley Smith Barney does not provide tax or legal advice.

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

Company Name

Symbol

Jul. 11

Jul. 3 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 13.26 39.54

0.05 0.01 13.84 39.25

-0.01 0.00 -0.58 0.29

0.04 0.01 8.35 32.96

0.52 0.10 15.94 39.56

8.35 0.54 1.69 7.63 56.46 6.31 84.09 19.37 57.59 4.01 15.55 25.87 31.73 27.66 23.18 14.92 94.50 39.92 46.90 11.09 63.22 51.06 17.88 32.36 25.97 51.67 53.70 185.25 31.21 57.34 5.28 34.59 30.75 9.65 47.55 22.81 1.60 29.98 26.67 40.35 58.92 33.15 38.03 34.77 46.66 62.82 20.30 10.54 55.31 42.78 17.98 36.91 56.38 7.85 9.56 44.94 27.58 59.79 16.20 27.30 38.10 24.79 116.52 32.44 14.12 32.28 72.26 29.94 33.27 9.10 18.93

8.90 0.53 1.90 8.06 56.60 7.13 83.78 21.77 58.12 4.02 16.37 27.65 32.03 27.57 25.10 14.94 94.42 39.61 47.87 10.77 63.41 54.23 18.31 35.22 25.99 51.65 55.77 195.93 32.44 60.15 5.25 35.88 31.62 9.82 44.26 22.92 1.64 31.03 27.62 41.34 60.08 33.39 39.25 34.30 46.61 63.93 21.88 10.83 56.55 43.44 17.97 38.21 60.23 6.74 9.29 43.73 28.33 57.58 16.24 28.56 38.90 24.00 118.95 36.62 13.20 32.58 70.75 29.64 33.48 9.50 19.70

-0.55 0.01 -0.21 -0.43 -0.14 -0.82 0.31 -2.40 -0.53 -0.01 -0.82 -1.78 -0.30 0.09 -1.92 -0.02 0.08 0.31 -0.97 0.32 -0.19 -3.17 -0.43 -2.86 -0.02 0.02 -2.07 -10.68 -1.23 -2.81 0.03 -1.29 -0.87 -0.17 3.29 -0.11 -0.04 -1.05 -0.95 -0.99 -1.16 -0.24 -1.22 0.47 0.05 -1.11 -1.58 -0.29 -1.24 -0.66 0.01 -1.30 -3.85 1.11 0.27 1.21 -0.75 2.21 -0.04 -1.26 -0.80 0.79 -2.43 -4.18 0.92 -0.30 1.51 0.30 -0.21 -0.40 -0.77

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 20.06 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

16.04 5.35 5.55 10.36 65.79 11.32 84.41 31.56 59.59 6.62 23.94 40.50 32.50 28.79 38.08 15.00 95.55 40.54 48.31 12.25 72.46 67.61 18.98 56.78 30.49 53.28 62.00 210.69 35.79 62.33 5.72 46.49 37.58 13.12 57.39 25.85 1.81 31.90 32.29 41.80 62.83 42.17 40.45 35.75 48.31 67.25 43.18 11.22 56.82 46.40 24.28 40.02 85.90 15.34 11.07 45.13 32.79 59.96 22.10 34.24 39.24 25.84 119.94 58.29 14.42 32.98 72.58 43.30 34.59 9.53 24.35

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

JULY 13, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Housing market stuck in spinning squirrel cage By Roger Yohem Inside Tucson Business In an odd offbeat way, the housing market in the Tucson region seems to be stuck in a wobbly, spinning squirrel cage. There’s a lot of activity, up and down and up again, with breaks in the momentum. Real estate reports have many bits of positive, negative and divergent factors spinning around. Since January, homes are selling faster. Average and median sales prices have ramped up. Slowly, inventory has dropped. Those improvements have stabilized the wobbliest parts of the whirlwind market. For real estate agents and bankers, going through the exercise has relieved some built-up stress. Yet the supply-and-demand cycle remains caged in a zone of distress and concern. Although the recovery is gaining some traction, the gap continues to widen between foreclosure sales and new potential foreclosures. The gap’s “up” piece was expected with notices of trustee’s sales forecasted to spin at high speeds through most of 2012. The “down” part was not expected, that the sales of foreclosed homes would slow to be 32 percent down from last year. “The most likely reason for the increase in foreclosure filings and the decrease in foreclosure sales is that financial institutions are speeding up their foreclosure processing. At a rapid rate, that decreases the shadow inventory,” said housing analyst John Strobeck, owner of Bright Future Business Consultants. Since there are so many investors and companies rehabbing and reselling foreclosures, “there is a bit of a frenzy” for these

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

TUCSON REAL ESTATE

7/2/2012

6/25/2012

$145,000 4,001 314 328 149

$152,000 4,096 360 405 297

Source: Long Realty Research Center

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

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

December Total Monthly avg.

475 4,814 401

30 YEAR 15 YEAR 3/1 ARM

Current

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

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

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

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

923 1,038 8,956 12,184 746 1,015

876 11,663 972

636 9,433 786

2012 705 918 904 910 984 946

5,367 895

Pima County Recorder’s Office data

homes, he added. “Resets on toxic mortgages are ending so there will only be a finite number of opportunities for these companies to continue to exist before we see the foreclosure pipeline decrease from a flood to a trickle.” In June, foreclosure notices totaled 946, bringing the year-to-date number to 5,367 (see chart). That is up 11 percent over the 4,847 notices issued for the first six months of 2011, according to the Pima County Recorder’s Office. A trustee’s notice is the first step in the foreclosure process. It notifies owners their property is in default and scheduled to be sold at public auction. The comparative monthly averages are now 895 notices for 2012 and 786 notices for 2011. For the same six-month period, sales of foreclosed homes have plunged to 2,718, from 4,001, a 32 percent drop. The slowdown is significant, as the monthly pace of sales is now 453 compared to 580 in 2011.

La Paloma Legends sold The Legends at La Paloma, a 312-unit apartment complex at 3750 E. Via Palomita, has been sold for $35.15 million to a Cali-

WEEKLY MORTGAGE RATES Program

ethics. Register online at www.tucsoncrew.org or email tucson.crew@gmail.com.

Last Week

7/9/2012

One 12 Month 12 Month Year Ago High Low

3.75% 4.00%APR 3.75% 4.00%APR 4.95% 3.13% 3.25%APR 3.13% 3.25% APR 4.22% 2.88% 3.125%APR 2.88% 3.125% APR

4.95% 4.22%

The above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000 Information provided by Randy Hotchkiss, National Certified Mortgage Consultant (CMC) Peoples Mortgage Company, P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000 MB #0905432. Rates are subject to change without notice based upon market conditions.

3.75% 3.13%

fornia-based investment group. The transaction is the largest apartment sale in the region this year. The resort-style property off Sunrise Drive in the Catalina Foothills was owned by an undisclosed investment fund managed by the national firm of Eaton Vance Investment Management. Built in 1995, the complex features a pool and spa, fitness center, clubhouse and outdoor picnic area. The buyer was NALS West LLC, an affiliate of Nevins Adams Lewbel Schell, Santa Barbara, Calif. CBRE represented the seller, led by Michael Sandahl of the Tucson office and Tyler Anderson, Sean Cunningham, and Asher Gunter in Phoenix.

Cool off with CREW On Thursday (July 19), a cool “breeze” will blow through the region when Tucson CREW (Commercial Real Estate Women) hosts its annual summer social event. Anyone involved in the commercial real estate industry is invited to the “Summer Breeze VII Social” from 5-7 p.m. at Union Public House, 4340 N. Campbell Ave. in St. Philip’s Plaza. The event provides an opportunity to learn about CREW and to network in a relaxed atmosphere, according to Sally Bach, director of Tucson CREW. Appetizers and two drink coupons will be provided to anyone who makes a reservation. The dealine for reservations is Monday. Tucson CREW, a nonprofit organization of commercial real estate professionals, is affiliated with the national CREW Network. The group works to provide education, leadership development, civic service and networking while promoting high standards of

Apartment auction A small midtown apartment complex has fallen into default and is scheduled to be auctioned in September. According to public records, Tucson-based Wincat LLC, owned by Joseph Esher, has an original principal balance of $568,000 on a 24-unit complex at 1632 N. Louis Lane, off East Pima Street between Alvernon Way and Columbus Boulevard. The trustee’s sale is being handled by Western Regional Foreclosures, Phoenix. The beneficiary is BMO Harris Bank, which is now the parent company of M&I Marshall & Illsley Bank, 4380 N. Campbell Ave. The auction is set for 11:30 a.m. Sept. 18 at the Pima County Courts Building, 110 W. Congress St.

Sales and leases • CAT Investment Properties LLC purchased a 1,830 square-foot building at 3448 N. First Ave. for $175,000 from Virginia and William Salzman, who were represented by Bill Mordka, Harvey Mordka Realty. The buyer was represented by Richard Kleiner, Picor Commercial Real Estate Services. • Matrix Service leased a 10,000 squarefoot industrial building at 3740 E. 43rd Place from John and Vera Williams Trust, represented by Brandon Rodgers, Picor Commercial Real Estate Services. The tenant was represented by Gordon Wagner, Coldwell Banker Commercial Group. • Sonora Desert Off-Road Center Inc. leased 5,000 square feet at 8500 S. Old Nogales Highway from GRG Properties LLC, represented by Dave Gallaher, Tucson Industrial Realty LLC. • Konica Minolta Business Solutions USA leased 4,792 square feet at 5151 E. Broadway from Kent Circle Investments, represented by David Volk and Bruce Suppes, CBRE. The tenant was represented by Rob Glaser, Picor Commercial Real Estate Services. • Wax & Wicks Candle Co. leased 2,897 square feet at 6546 E. 22nd St. from Tierra Del Sol. The transaction was handled by Robert Nolan, Oxford Realty Advisors. • Studio One Arizona Dance Company leased 2,367 square feet at 8045 S. Rita Road from Pajaro LLC, represented by David Hammack, Volk Company Commercial Real Estate.

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

20 JULY 13, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

A tale of 2 downtowns, one successful, one not I’m back from Milwaukee, Wis., the site of the summer conference of the Alliance of Area Business Publications, and where I came to realize Tucson screwed up. Even though I’ve been the editor of Inside Tucson Business for nearly eight years, this is the first time I attended our organization’s annual conference. But since I missed getting my invitation to go along on Tucson Regional Economic DAVID HATFIELD Opportunities’ May trip to San Diego, I figured it was time to get to know my editor brethren at other business journals across the country — and internationally, too, after having breakfast the first morning with Elton Swarts, chairman of the Western Australian Business News in Perth. As for Milwaukee, I was fascinated by what appeared to be their success in revitalizing downtown. The conference was held at their grand old hotel, the Pfister. Emphasis on the word “old” but, hey, at least they’ve got a downtown hotel that can hold a descent-sized conference. Tucson doesn’t. From the hotel we could walk to the lakefront and its Discovery World museum, to a revitalized warehouse district called the Third Ward and to popular places along the Milwaukee River’s riverwalk. Not too far away was the Harley-Davidson Museum and burgeoning Menomonee Valley area. It probably helped that except for a few days of heat, the weather was nice most of the time I was there. As I was thinking about it, I recalled that Tucson had a connection with Milwaukee when it comes to downtown revitalization. Greg Shelko had worked for the City of Milwaukee for 27 years and was assistant executive director of its Redevelopment Authority before coming to Tucson on June 1, 2004, to be director of Rio Nuevo. He stayed for five years until the state Legislature wrested it away from the city as of June 30, 2009. In Milwaukee, Shelko had a reputation for being the “do-er.” After decision-makers made their calls, Shelko was the guy who made sure the work got done. The first time I met Shelko in 2004 we talked of the kind of political leadership that stokes downtown revitalization — and it can boil down to one or a few persons with vision. A lot of the early credit in Milwaukee goes to John Norquist, who was mayor from 1988 until 2004 and is now president and CEO for the Congress of the New Urbanism in Chicago. During his mayoral term he was called a “fiscally conservative socialist,” a term he didn’t reject. No doubt Norquist’s enthusiasm for urban development shaped Shelko’s thinking of what could be. I talked with Shelko this week and he says he’s “happily retired” from government life and would like to stay out of the news, though he still loves living in Tucson. From what I saw in Milwaukee, its downtown is coming back — even if they did lose out last month in their fourth try to get up to $52 million in U.S. Department of Transportation’s Transportation Investment Generating Economic Recovery (TIGER) grant money to extend a two-mile streetcar route by another 1.6 miles. Shelko was part of downtown Milwaukee’s success. Too bad he wasn’t allowed to succeed in Tucson.

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

EDITORIAL

We can make things in Arizona, too Last month, airplane manufacturer Airbus announced it would open a plant near Mobile, Ala., to build commercial airliners. It’s about 650 miles away from North Charleston, S.C., where Boeing recently built its own airliner manufacturing plant. Touted in both instances was the fact that Alabama and South Carolina are right-to-work states that do not require employees to join a union to get a job — in other words, closed unionized shops are illegal in those states. Closed shops are illegal in Arizona, too. In fact, of the 23 right-to-work states, Arizona is one of just six where it’s part of the state’s constitution. And it’s not just airplanes that are attracting manufacturers. They’re making Toyotas in Kentucky and Mississippi, Nissans and Volkswagens in Tennessee, Kias in Georgia, BMWs in South Carolina and Hondas, Hyundais and Mercedes-Benzes in Alabama. Did any of these companies ever consider Arizona? In the secretive world of economic development and site selection, we’ll never know for sure. What we do know, however, is that if Arizona leaders tried to woo these companies, they didn’t succeed. Sure, Arizona has gained some unwanted political notoriety, but we can’t blame the lack of manufacturers coming here entirely on boycotts. In the wake of passage of the anti-illegal immigration law SB 1070 in 2010, Alabama, South Carolina and Georgia, among others, have passed their own versions. As the entire United States continues to struggle to recover from the economic recession, Arizona and Tucson in particular, are hampered by the fact that we really don’t make very many things here. Of the 100 largest employers in the state, only eight are manufacturers, according to the 2012 annual survey done earlier this year by the Arizona Republic. Of those eight — Raytheon Missile Systems, Intel, Honeywell International, Boeing, W.L. Gore & Associates, Freescale

Semiconductor, Microchip Technology and Orbital Sciences — all have legacies in Arizona dating from 54 to 19 years ago. There’s not a newcomer in the bunch. Yes, this would be an appropriate time to ask economic developers: What have you done for us lately? To be fair, Intel has begun a major $5 billion expansion of its operations in Chandler, and by this time next year it should employ close to 14,000 people, making it the largest manufacturing employer in the state. Currently, that ranking goes to Raytheon in Tucson with its 12,000 employees. And we all know how Tucson dropped the ball when it came time to be at the plate when Reytheon needed to build a new manufacturing plant two years ago. Alabama got it. That announcement took place at a little event called the Farnborough International Airshow, a biennial event — trading off with the Paris Air Show in odd-numbered years — which took place this week in England. Representatives of the Arizona Commerce Authority are among the delegates who were scheduled to be there. Beyond that, officials from smaller cities were there as was noted by a columnist in the Rock Hill, S.C., newspaper, The Herald, who wrote the air show “is about relationships and marketing, and you can assume the men and women from Alabama will come with a game plan as masterful as anything Bear Bryant designed for his Tide teams and possibly the trickery we’ve come to expect from Cam Newton and the Panthers. Newton won a national championship at Auburn, and those going to Farnborough want to win just as badly.” While the headlines from this week’s airshow had more to do with orders of airliners, the real challenge lies in establishing those relationships that some day should land a significant manufacturer here. That will be the real mark as to whether this state is competitive in economic development. We can make things in Arizona, too.

InsideTucsonBusiness.com

JULY 13, 2012

OPINION WAKE UP, TUCSON

Message to businesses: A little courage goes a long way “Courage is being scared to death — and saddling up anyway,” said actor John Wayne. That’s the situation facing business leaders in Pima County right now. Positive changes have brought in the new leadership of Mike Varney and Bill Holmes, as CEO-president and chief operating officer, respectively, of the Tucson Metro Chamber, and Brent DeRaad as president and CEO at Visit Tucson — you may still know it as the Metropolitan Tucson Concention and Visitors Bureau. Now imagine what would happen to this region if we could execute similar moves in the government side of the equation. In our column two weeks ago we noted the positive movement coming from Tucson Mayor Jonathan Rothschild and City Manager Richard Miranda. Now, to truly change this region for the better for small business owners, the Raytheon Missile Systems, the hotels and the biotechs, the Pima County Board of Supervisors must flip 3-2 away from the machine that has pistol-whipped engines that could drive the economy, all the while claiming they are business-friendly as they take their Hornblower cocktail cruises of San Diego Bay with Tucson Regional Economic Opportunities (TREO). We keep hearing from business leaders

their one excuse for not getting involved is f-e-a-r. Developers, especially, have lived for two decades under a veritable dictatorship built on the message from county government JOE HIGGINS that says “step out of line and your project will linger in a perpetual holding pattern.” The tactics can range from a native plant ordinance for the one-eyed pineapple cactus or a requirement to buy 1,000 acres of open space a dozen miles CHRIS DeSIMONE away from your project to a non-written assessment handed from underlings that reads “we’re not sure we can provide wastewater hook-up to that project.” If you don’t believe us, just ask Marana. What’s a developer to do? Three things: Hire the right attorney, consultants and

retired county employees who can magically get your project moving; donate, donate, donate to the campaign of any of the three majority board members; and never ever get out of line. When does this dynamic end? Between Pima County and the City of Tucson there are 12 elected officials spending almost $3 billion dollars of taxpayer money annually. Most of them you wouldn’t consider hiring as an employee, let alone run two governmental entities where nearly 1 million people live. These are the same elected leaders who’ve let roads rot, can’t find the means to open a swimming pool and yet tax the heck out of you. Do you think they’re willingly going to end their style of governing through fear and intimidation? The negative effects of their governance are manifest all around. Our region’s economy remains mired in the doldrums. We are a region rich with minerals run by government officials who fight to keep mines out. We are dependent on the government for jobs but hate the idea of letting the government bring F-35s here. We don’t want sprawl yet government makes the process of infill difficult. And all the while we watch the University of Arizona’s end product leave for opportunities elsewhere.

This isn’t new, and to keep this going the powers that be in this region are counting on you to: 1. Be busy with your business and your life 2. Be cheap 3. Be scared (“do you know what they would do if they saw us together?”) 4. Be complacent (“we can’t change this place, it’s just the way it is.”) If the business community continues to operate out of fear, the economy of the Tucson region will remain stagnated. That’s bad for you, your employees, and all citizens, including even the electeds who helped create the problem. Alan Moore author of the V for Vendetta comic book series about a dystopian future government that was turned into a 2006 movie, includes a speech from a masked revolutionary working to bring down the oppressive government in which he says, “How did this happen? Who’s to blame? Well, certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you’re looking for the guilty, you need only look into a mirror.”

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

GUEST OPINION

Interstate 11 is Arizona’s highway to opportunity Amid the news of two significant Supreme Court decisions at the end of June, Congress ended a three year ordeal and passed a long-awaited extension of highway and transit funding. After nine prior extensions of the 2009 transportation bill, a final, one-week extension was filed to provide sufficient time to obtain President Obama’s signature. The bill, which has been touted as providing “unprecedented reforms,” is valid for only two years as opposed to the optimal five years necessary for effective long-term planning. After all the political wrangling, the bill finally awaits the president’s signature. A significant accomplishment of the $100 billion federal transportation bill is its inclusion of language designating the Interstate 11 corridor and making it eligible for interstate highway funds. In Arizona, the corridor would create an interstate freeway directly connecting Phoenix and Las Vegas. Gov. Jan Brewer, with support from Arizona’s congressional delegation and numerous public and private partners, has been actively pursuing the designation of I-11 since her arrival in office. In January’s State of the State address, the governor highlighted the I-11 project and its impor-

tance in the western United States. The project serves as a “cornerstone in her jobs and economic development agenda” — playing a key role in establishing Arizona as a comJENNA MINEGAR petitive player in the global market. Phoenix and Las Vegas remain the largest cities in the United States not linked by an interstate highway system. When the Federal Highway Transportation act was enacted in 1956, the population corridor from Tucson through Phoenix, Las Vegas and on to Reno had a combined population of a mere 700,000. Today that number has grown to 8 million and continues to increase as people from all over the world discover the greatness of eternal sunshine and these booming metropolises. As population in the western United States grows, trade between the U.S., Mexico, and Canada continues to thrive. Total trade among the three countries reached more than $919 billion in 2010 and is projected to increase substantially

as Mexico continues port expansion. We have popular tourist destinations, with growing populations and ideal locations for bustling lines of international trade. What we don’t have is a sufficient highway system directly connecting them to make the flow of commerce efficient and competitive. The I-11 link connecting Phoenix to Las Vegas, and potentially expanding access north to Canada and south to Mexico, puts Arizona at the center of new opportunities for commerce, tourism and trade. I-11 would create more efficient trade connections among five of the largest metro areas in the western U.S.: Seattle, Portland, San Francisco, Las Vegas and Phoenix. It would connect major trade hubs, existing and future domestic and international deepwater ports, and intersecting transcontinental roadways and railroad corridors. On a micro level, I-11 would alleviate congestion by providing a route for truck traffic around the Phoenix metro area. This is a key benefit as expansion of the Mariposa Land Port of Entry in Nogales is estimated to triple the number of trucks driving through parts of Ari-

zona and Nevada, further creating traffic delays and running roadways ragged. And most notably, according to an estimate of the 2040 travel demand, I-11 would usher 5,000-24,000 passenger and commercial vehicles through Arizona each day. That’s 5,000-24,000 vehicles containing potential patrons of local gas stations, hotels, restaurants, and tourist sites. The ease and connectivity of Interstate 11 will help solidify Arizona as the destination for business. It will create opportunities for manufacturing, distribution, real estate development, transportation, construction, retail and more. It will create jobs, encourage global investment and increase longterm economic stability. The development process of I-11 is bound to be long. Engineering and environmental studies will commence this summer, with construction beginning no sooner than 2017. For now, we await the president’s signature and celebrate the possibility that lies ahead.

Contact Jenna Minegar, manager of marketing and communications at the Arizona Chamber of Commerce and Industry at jminegar@azchamber.com.

22 JULY 13, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

What ‘Most Wired’ at TMC means to healthcare and to Tucson With health care undergoing a dramatic transformation as leaders seek ways to increase quality and reduce costs, there’s a case to be made that the hot information technology (IT) jobs are no longer on the western coast, but down the street at your local hospital and physicians group. The federal government has been pushing reforms for the industry, that for too long relied too heavily on manual data entry and paper records. At the same time and independent of those federal incentives, health leaders have begun to see the ways technology can be leveraged to decrease complexities and increase quality and patient safety. If you’re an IT worker, that’s a recipe for opportunity, with increasingly stiff competition to recruit and retain qualified staff members. Tucson Medical Center (TMC) is in a place to know about the challenges – doubling our IT staff in recent years as we broke new ground in technological advancements. In the summer of 2010, after years of preparation, TMC left paper records behind and pioneered the challenging move to electronic medical records. By summer 2011, TMC was estimated to be in the top 1 percent of more than 5,000

FRANK MARINI

hospitals nationwide for its use of technology receiving the highest award, a Stage 7 score, as measured by HIMSS Analytics, a subsididary of Healthcare Information and Management

Systems Society. This week, TMC was the only Southern Arizona hospital to make the “Most Wired” list, which recognizes those hospitals that comprehensively use technologies to improve care for patients, to streamline data collection and to boost efficiencies. Finding the right people to staff those endeavors hasn’t been easy. Since healthcare IT is a burgeoning, but new, market, there is a natural shortage of employees. And with large systems and consultants snapping up talented professionals by dangling larger salaries, Tucson recruiters are bumping into the classic rule of supply and demand. Those of us who love Tucson know its charm, but it is also a bit of a tough market to recruit into. It’s not the state capitol. It’s

of a moderate size. Since healthcare IT remains a somewhat specialized field, that means there aren’t as many opportunities for fall-back jobs within the same town. These short-term challenges to fill the resource gap will give way to long-term opportunities though, because health care technology is so vital in enabling the industry to make the changes it must. This hospital has been making major improvements in technology for years - but not just to make a list or secure a particular ranking. It’s helping us deliver safer care more efficiently. The electronic system, for example, is helping us ward off medication errors. By scanning a bar code on a patient’s wristband, medications can be linked directly with a specific patient, providing both staff and patients with the assurance that orders are being carried out with accuracy. It’s working. In 2011, TMC delivered more than 2.5 million doses of medication. In that time, the system issued 12,500 alerts at the bedside when a wrong medication was attempting to be administered. That represents only 0.5 percent of all doses delivered, and there are nuanced differences that can trigger an alert - even to the point that it makes distinctions between a caplet and a tablet. Even so,

without the technology, caregivers wouldn’t necessarily have had that opportunity to double-check their actions. That’s just one example. From filmless medical images to electronic physician orders, technology allows us a greater opportunity to avoid transcription errors, lost records or delays. It also allows us to collect more data on quality measures. In a way that we have never been able to do before, technology is helping us have a clear gauge of how well we’re performing and where we need to improve. Reaching a new threshold or making a list doesn’t mean our work is done. We’ve come pretty far on our journey. We have a strong foundation in place. But we will never be done finding ways to enhance efficiency and refine the quality of care we provide. In the end, what that means for health care workers is they have a chance to help make health care goals a reality. And their work matters. It helps other people go home to their loved ones and live healthier lives.

Frank Marini is chief information officer at Tucson Medical Center.

InsideTucsonBusiness.com

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JULY 13, 2012

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INSIDE TUCSON BUSINESS

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