Inside Tucson Business 07/27/12 by Territorial Newspapers

EMBRYRIDDLE SOARS IN SOUTHERN ARIZONA Aeronautical university seeing success and growth PAGE 8

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JULY 27, 2012 • VOL. 21, NO. 61 • $1

The Big Kahuna Sustaining Edge Solutions lands big contract in Hawaii Page 4

City, re cycler t urn ref use int o profi ts at ne w recyc ling ce nter

Getting in the Zone Oro Valley looks to streamline development process Page 5

PAGE 3

Housing Reality

Photo by Patrick McNamara Illustration by Andrew Arthur

Housing market improving, but not booming Page 18

Despite bloody headlines, Americans still going to Mexico By Lourdes Medrano The Christian Science Monitor While Mexico has grabbed headlines for beheadings and mass graves that have been uncovered across the country, tourism hasn’t materially suffered. Last year, a record 22.7 million visitors chose Mexico as a tourist destination, according to Mexico’s Ministry of Tourism. In fact, only 7 percent of American retirees who live or travel often to Mexico have been scared off by violence, according to the International Community Foundation. Most retirees are

neither reducing the frequency nor length of their trips to Mexico. Tourism has continued in part because violence has been contained. It has spread from a conflict largely concentrated on the U.S.-Mexico border to several hotspots within the country. Places including Cancun and Mexico City have been largely untouched. The Mexican government has long maintained the vast majority of deaths have been between rival drug traffickers, a feeling shared by at least some U.S. expatriates. “Most feel that the victims have had connections to the drug business or

sometimes targets were part of an extended family and a message is being sent,” says David Truly, who has studied migration patterns in Jalisco state, which has Guadalajara as its capital. “When these things happen many leave … but others understand the reality of the situation and that they are not at risk.... Why would the cartels want to target Americans?” says Truly, a retired geography professor. “This might bring more attention from the U.S.” According to the U.S. State Department, 424 Americans were reported as killed in homicides in Mexico be-

tween 2006 and 2011, compared to 945 in all other countries in the same time period. That reflects the proximity of Mexico to the U.S. and the frequency with which Americans travel there. Some at the border can walk from their hometowns and be in Mexico in less than 10 minutes. But it also underscores the reach of violence. The number of Americans reported as murdered to the State Department nearly quadrupled from 35 in 2007 to 120 in 2011, according to the U.S. State Department travel advisory for Mexico from February.

2 JULY 27, 2012

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JULY 27, 2012

NEWS

City’s new recycler starts processing, accepting more material By Patrick McNamara Inside Tucson Business

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

Raytheon’s Missile Systems has received a $925 million contract order from the Pentagon for work related to naval missiles that could be used to destroy longer-range missiles such as those that have been launched from North Korea. The U.S. Department of Defense announced the contract Wednesday (July 25). Raytheon already had a $583 million research and development and missile testing contract via the Missile Defense Agency. The new award brings the total for the project to $1.5 billion. The contract calls for Raytheon to develop, design and test the Standard Missile-3 Block IIA and have it rolled out by 2017. The missile could be launched from ships to destroy other longer range missiles. The program is a joint venture of the United States and Japan, according to the Reuters news service.

Tucson unemployment rate rises to 7.7% in June

Patrick McNamara

The city of Tucson’s new contractor for recyclable processing has started operations. North Carolina-based ReCommunity won the city contract to process recyclables the city’s Environmental Services department collect from residential customers. “What we more or less will be doing is a sizing and sorting business,” said Will Herzog, business development manager with ReCommunity. The newly constructed 57,000 square-foot facility at 3780 E. Ajo Way, at the southwest corner of Alvernon Way, has the capacity to process 80,000 tons of recyclables per year, Herzog said. The city is expected to bring in about 45,000 tons per year. As recyclable-laden trucks enter the facility, they drive across scales to monitor the incoming materials. Once the loads are jettisoned, the sorting and sizing begins. Front-end loaders scoop the bottles, cans, paper and plastic onto conveyor belts that send the material into the sorting facility. From there, a series of mechanical and manned sorting stations segregate the recyclable materials for further processing. At the end of the cycle, the materials are pressed into bales, loaded onto trucks and carted away for sale. The contract with the city includes a $30per ton fee paid to ReCommunity for processing. The payments are capped at $1.15 million per year. In addition, ReCommunity will equally split with the city the proceeds from the sale of the recyclables. That could result in more than $3 million of revenue annually for the city, based on a sample month ReCommunity provided in a bid proposal. “If it’s something that we’re going to take and sort, we’re going to sell it,” Herzog said. “Everything that goes out of our facility as trash is nothing but a cost to us.”

Pentagon boosts Raytheon missile contract by $925M

ReCommunity has a capacity of 80,000 tons per year.

Some of the largest markets for recyclables are aluminum and paper, he said. “Paper gets made into paper, aluminum cans get made back into aluminum cans,” Herzog said. Also under the new contract, Tucson residents are able to put more types of recyclable material in their blue bins. Up to now, the contractor the city used would accept only plastics numbered one or two. The numbers are usually found on the underside of containers inside a triangle indicating the material is recyclable. ReCommunity will accept plastics numbered from one to seven. This includes materials like those used in standard water bottles, milk jugs, household cleaners, fivegallon water jugs, CD cases, clamshell cases, yogurt tubs and lotion bottles. Plastic bags, such as those from most grocery stores, still are not accepted. Herzog said bags can be recycled but the cost to do so does not make it profitable.

ReCommunity’s contract with the city is for 15 years with the possibility to renew for five more. The agreement took effect July 1, although the Tucson facility did not begin processing material until last week. For the first part of the month, ReCommunity hauled recyclables at its expense to one of its facilities in the Phoenix area. With about 35,000 tons of available capacity beyond what the city is using, Herzog said his company will likely seek to fill it with contracts with garbage hauling companies. Initially, about 40 people are working at the facility. The new building also is equipped for public education programs, which Herzog said the company intends to begin in cooperation with ongoing efforts from the city.

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

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.

Tucson’s unemployment rate in June was 7.7 percent, up from 7.2 percent in May but down from 9.1 percent in June 2011, according to the Arizona Department of Administration. Seasonal job losses in June are typical in Arizona but this year’s losses were milder than in recent years, according to the statisticians. Most of the losses were in government jobs due to the end of the school year. To some extent the losses were softened by greater losses in May due to changes made by many school districts in the state that ended the school year earlier. This was also the fourth consecutive June for job losses in the private sector, however, this year’s declines were smaller than in any of the previous years. The Tucson unemployment rate is not seasonally adjusted so year-over-year comparisons are more appropriate than monthto-month changes. Compared to June 2011, the total available workforce in the Tucson region was down 7.5 percent to 455,200. The number of people with jobs was down 0.3 percent to 420,300. Arizona’s state-wide unemployment rate remained unchaged at 8.2 percent for a second consecutive month. The U.S. unemployment rate was also 8.2 percent.

EDITION INDEX Public Notices 6 Lists 7 Profile 8 Meals and Entertainment 9 Arts and Culture 9 Inside Media 10 Briefs 14-15

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

16 17 18 19 20 20 23

4 JULY 27, 2012

INSIDE TUCSON BUSINESS

NEWS The Arizona Department of Health Services has rejected petitions to add four conditions to the state’s medical marijuana program. Medical marijuana cardholders and caregivers had requested the state health department add migraines, generalized anxiety disorder, depression and post traumatic stress disorder to the list of approved conditions that can be treated by medical marijuana. Will Humble, director of the Department of Health Services, said there is insufficient, valid, scientific evidence that justifies adding the four conditions to the program.

Gas prices fall to their lowest of 2012 Gas prices continued to fall over the past week, with the average price in Tucson falling to $3.19 per gallon this week from $3.22½ per gallon a week ago, according to AAA Arizona’s Fuel Gauge survey. It is lowest average price of the year. This marks 16 consecutive weeks the price has continued to fall in Arizona. The falling prices the past three weeks has run counter to what’s happening nationally where retail gas prices have been on the rise for the past three weeks. Statewide, the average gas price this was $3.30 a gallon, down about 2 cents a gallon in the past week. Tucson continues to have the lowest average in Arizona. Nationally, the average rose to $3.48½ a gallon, from $3.42½ a week ago. Despite the increases elsewhere, gas prices this year remain below where they were a year ago at this time when the national average was $3.69½ a gallon, the Arizona average was $3.63 a gallon and the Tucson average was $3.28 per gallon.

Tucson Chamber grades state lawmakers’ work Five Tucson area state lawmakers received high grades for their work in the Leigslature this year from the Tucson Metro Chamber. The 2012 Arizona Legislature Report Card is based on the voting records of Southern Arizona’s legislators on pro-business policies on which the chamber advocated a position. Lawmakers were awarded a percent score based on how often they voted in accord with chamber positions. The highest scorer was Republican Sen. Al Melvin, who received a score of 90. High scorers i the state House were Reps. David Gowan, who received a score of 88, and Bruce Wheeler, Ted Vogt and Marcario Saldate, all who whom received scores of 84. Gowan and Vogt are Republicans and Wheeler and Saldate are Democrats. At the other end of the scale, low scores went to Sens. Paula Aboud and Linda Lopez, both Democrats who received scores of 68. Gov. Jan Brewer received a score of 81. The full report is at TucsonAdvocacy.com.

Tucson’s Sustaining Edge Solutions lands big kahuna By David Pittman Inside Tucson Business Sustaining Edge Solutions Inc., a Tucsonbased management consulting and training firm, has landed the big kahuna, it’s biggest contract ever, at six-figures. Hawaii Gas Company, which serves about 70,000 residential and commercial customers on the six major Hawaiian Islands, literally goes by the name The Gas Company (TGC) in Hawaii. In business since 1904, it has more than 300 employees. TGC has hired Sustaining Edge Solutions to design, develop and implement a process leading to ISO 9001 certification for the company. It is an international quality management standard that has been set by the BIZ FACTS International Organization Standardization in Sustaining Edge Geneva, Switzerland. Solutions, Inc. The standards encourage www.sustainingedge.com efficiency, save operat525 N. Bonita Ave. ing costs and increase (520) 572-9642 profits. Walter Tighe, president, owner and founder of Sustaining Edge Solutions, has 24 years’ experience in business systems improvement in both manufacturing and transactional environments in government, defense, automotive, semiconductor, customer service, Lance Lam, left, division manager of quality assurance and compliance for Hawaii Gas Comelectronics, mechanical, medical, logistical, pany, and Walter Tighe, president and owner of Sustaining Edge Solutions Inc., at Hawaii Gas aerospace and charitable organizations. With Company’s headquarters in Honolulu. the addition of Hawaii Gas as a client, Tighe complete the ISO 9001 certification project for condition of doing business,” Tighe said. “But adds utilities to that list. In the 10 years he has run Sustaining Edge Hawaii Gas Co. In that time, Tighe expects to it is the companies that take the certification Solutions, the company’s customers in Ari- make seven to nine trips to Hawaii, with each and do more with it than just hang it on the wall that get the most benefit. The Gas Co. zona, California, Colorado, New Mexico, Ne- visit lasting for one or two weeks. “It’s tough duty, but somebody has to do is one of these companies. They realize the vada, Texas and Utah have included Intel, Dial benefits that will come from using a globally Corp., General Dynamics, Universal Avionics it,” Tighe quipped. Hawaii Gas Company owns and operates recognized standard as a tool to analyze their and Solon Corp. Mike Futrell, executive vice president of the only synthetic natural gas (SNG) manu- systems and processes and improve customer TGC, said the company embarked on the ISO facturing plant of its kind in the U.S. The plant satisfaction.” Tighe said the process will result in savings 9001 process to improve quality, customer makes SNG from byproducts of imported peservice, employee relations and overall pro- troleum that is refined and distributed to its for Hawaii Gas Company but he said it’s imduction – and to sustain those improvements customers in metropolitan Honolulu through possible to predict how much. “I’ve worked with some companies that for decades to come. Doing so, he said, would a 1,100-mile pipeline network. The company result in long-term improvement to TGC’s supplies liquefied petroleum gas, or propane, have saved 60 percent cycle time or reduced to commercial, residential utility and non- rework by 40 percent or more. But no two bottom-line profitability. companies are alike,” he said. “Some are Sustaining Edge Solutions was selected to utility customers statewide. TGC is a wholly owned subsidiary of Mac- more efficient or effective than others. But lead the effort because it has “the right balance of technical expertise, experience and quarie Infrastructure Co., a publicly traded I have never, ever, worked with a client that (New York Stock Exchange: MIC) firm that didn’t achieve significant results. Anytime personal customer service,” Futrell said. Lance Lam, division manager of Quality owns a diversified group of infrastructure you examine a system, put it on paper, break it down and analyze it — you are going to Assurance & Compliance for TGC, was also businesses. Tighe said companies go through quality identify ways to improve it, which always reimpressed with Tighe and his company. “Walter and Sustaining Edge Solutions pro- management processes for a variety of rea- sults in improved profits for the company.” vided through website, newsletters and direct sons. He called TGC’s motivation “an enlightContact David Pittman, a freelance contact an in-depth look on how companies ened management decision.” “A lot of companies do this because they writer, at dpittman47@hotline.com or (520) 551can benefit from an ISO 9001 certification,” he are being told to do this by a large company 2735. said. It is expected it will take 18 to 24 months to or a government entity that is requiring it as a Sustaining Edge Solutions

State rejects added reasons for medical marijuana use

InsideTucsonBusiness.com

JULY 27, 2012

NEWS

Oro Valley looks to streamline process to attract new biotechs By Patrick McNamara Inside Tucson Business

Good News Grant Road widening It’s no cross-town freeway but at long last work is officially underway widening Grant Road as an east-west thoroughfare. Groundbreaking ceremonies were held Thursday (July 26) at the Grant and Oracle roads intersection, which is the start of the project that will extend east to Swan Road. The intersection improvements will take a year and the entire Grant Road project will be done in phases that are scheduled to take until 2026.

The Tucson

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

With an eye toward expanding its cluster of medical-research firms, Oro Valley officials have begun discussions about ways to streamline the development process to attract more biotech companies. “We’re trying to create our own success and our own destiny,” said Oro Valley Mayor Satish Hiremath. The crux of the plan, which in its early stages has the support of the town council, would include amending the zoning code to establish an economic expansion zone in one area of Rancho Vistoso in northern Oro Valley. That would require the council to amend the town’s zoning code to create an alternative process for development submittal, review and approval for businesses in what’s known as Rancho Vistoso Neighborhood 3, an area primarily along Innovation Park Drive. It’s an area that’s already home to Roche Group’s Ventana Medical Systems and Sanofi, two of the world’s largest medical-research companies. Currently in Oro Valley, most development projects require at least two neighborhood meetings in addition to public hearings and meetings with town boards and the town council to get approval. Hiremath said the new streamlined system would gather public input through neighborhood meetings at the beginning of the process. The proposal also could create a process allowing for more administrative approvals instead of having to get council approvals. “The end result is more job creation, more critical mass, which we don’t have,” Hiremath said. Other council members were generally supportive of the proposal. Councilman Mike Zinkin said certain stipulations should be included such as excluding development plans that would require zoning changes or conditional use permits. Zinkin also suggested that any qualifying development proposal be no closer than 600 feet from residences. “If you meet those three conditions, you can then just go through staff,” Zinkin said. That final stipulation shuld be relatively easy to meet since Neighborhood 3 has no residential units. Also, per a 1987 planned area development plan that governs zoning in Rancho Vistoso, the developable area is reserved mostly for campus park industrial space. Going further than Hiremath, Zinkin said the new process could take council or

This Week’s

Biotechs ﬂirting? Oro Valley hopes to attract more companies like Ventana Medical Systems.

commission meetings entirely out of the equation. He said that because the area already has been zoned for campus park industrial and other business uses, the streamlining would not have an adverse impact on residents. Hiremath and Zinkin estimate that a streamlined process could trim as many as nine months from the planning and development process. The idea is getting initial support from business intersts in Oro Valley. “This proposed zone is an excellent idea,” said Dave Perry, president and CEO of the Greater Oro Valley Chamber of Commerce. Perry said his chamber would support the plan to facilitate bringing more biotech firms such as Ventana Medical and Sanofi to the area. It would create a “cluster effect” of synergy and competition. California’s Silicon Valley is one of the most renowned cluster regions in the world. “Oro Valley does posses the closest thing we have to a cluster,” said David Welsh, executive vice president with Tucson Regional Economic Opportunities. “I think this is an important step for them.” Welsh previously worked as Oro Valley’s economic development administrator. He said the possibility of saving development time could help attract more companies, particularly start-up firms. The operations of both Roche’s Ventana Medical and Sanofi began as start-ups in Oro Valley, Welsh noted. “Instead of one Ventana or Sanofi every 15 years, we need one every year,” Welsh said.

The new effort plays into Oro Valley’s ongoing “rebranding” effort, as Hiremath described it. “From 1974 to the early 2000s, Oro Valley’s single largest goal was to be the largest retirement community in Arizona,” Hiremath said. Natural population growth and a spate of annexations through the 1990s and into the 2000s began to change that. Between 2000 and 2010, Oro Valley’s population grew more than 38 percent, according to U.S. Census figures. Today, the town has about 40,000 residents. While the population has grown, Oro Valley demographics still lean heavily toward retirees. More than a quarter of the town’s population is 65 years old and older. Town officials hope this latest effort to attract more high-tech, high-wage employers, coupled with arguably one of the region’s better education systems, pays off. Hiremath said he’s banking on something else to attract more biotech employers – a responsive mayor. The Ventana Medical expansion in Oro Valley announced in 2010, followed months of conversations with site selectors and others working on behalf of Ventana Medical, which also considered going to Indianapolis for the expansion. “The one thing I asked (a site selector) when we did this,” Hiremath said, “did the mayor of Indianapolis sit down with you?” The answer was no, Hiremath said. Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

Roche’s Ventana Medical Systems, Sanofi and other like-minded firms in Oro Valley might be adding some new Innovation Park neighbors in the not-too-distant future. Insider hears a major biotech is looking at becoming part of the cluster and a start-up has also expressed an interest in going there.

Hot airport parking Southern Arizonans know the best parking spaces in the summertime are the shaded or covered ones, no matter how far the walk after you park. But when shade and convenience come together, you’ve got a hot commodity — make that a cool commodity. For the first time since Tucson International Airport opened its parking garage in 2007, the 630 spaces in it filled to capacity once this summer and nearly so on two other occasions. The parking is located just east of the terminal building, behind the rental car building. The cost is $9 a day, which is high by Tucson airport standards but try telling that to someone who flies out of other airports.

PHX says ‘beer’? When Anheuser-Busch thinks beer, Tucson is no Augusta, Ga.; Columbus, Ohio; Oklahoma City or any one 39 locations the company has picked to trademark their three-letter airport codes for “beer,” according to a filing with the U.S. Patent and Trademark Office. This comes on the heels of a May filing to trademark 15 telephone area codes as beer. The company isn’t saying what it intends to do with the trademarks but we can watch for two brands of beer that are included: 602, the area code for Phoenix, and PHX, the airport code for Sky Harbor International Airport.

6 JULY 27, 2012

INSIDE TUCSON BUSINESS

NEWS PUBLIC NOTICES

US Airways chief takes pitch for American Airlines merger to Washington

Public notices of business bankruptcies, foreclosures and liens filed in Tucson or Pima County and selected filings in Phoenix. Addresses are Tucson unless otherwise noted.

Business bankruptcies, foreclosures and liens recorded in Tucson or Pima County and selected ﬁlings in Phoenix. Addresses are Tucson unless otherwise noted.

BANKRUPTCIES Chapter 11 Business reorganization Phillip C. Klingler, 2351 W. Limewood Drive. Principal: Phillip C. Klingler, debtor. Estimated assets: $50,000 or less. Estimated liabilities: $50,000 or less. Largest creditor(s): Not filed. Case No. 12-16136 filed July 19. Law firm: Michael W. Baldwin Joann M. Saylor, 2601 W. Capistrano Road. Principal: Joann M. Saylor, debtor. Assets: $328,400.00. Liabilities: $493,294.32. Largest creditor(s): Nationstar Mortgage, Lewisville, Texas, $133,952.00. Case No. 12-16393 filed July 23. Law firm: Eric Slocum Sparks Craig Steinhoff and Stephanie Steinhoff, 3606 S. Peart Road, Casa Grande. Principal: Craig Steinhoff and Stephanie Steinhoff, joint debtors. Assets: $328,400.00. Liabilities: $493,294.32. Largest creditor(s): BAC Home Loans/Country Wide, Simi Valley, Calif., $244,306.00, and Bank One, Westerville, Ohio, $229,132.00. Case No. 1216437 filed July 23. Law firm: Eric Ollason

FORECLOSURE NOTICES 911 Insurance Agency LLC 7533 W. Calle Lerdo 85757 Tax parcel: 210-34-2330 Original Principal: $38,000.00 Beneficiary: Aboud & Aboud PC Profit Sharing Plan Auction time and date: 10 a.m. Oct. 11, 2012 Trustee: Michael J. Aboud, 1661 N. Swan Road, Suite 234 Madera Business Park LLC 2750 S. Fourth Ave., South Tucson 85713 Tax parcel: 119-02-0740 and 119-02-027H Original Principal: $1,500,000.00 Beneficiary: Maple Trust 2012-1, c/o Garrison Investment Group, New York Auction time and date: 11:30 a.m. Oct. 24, 2012 Trustee: Travis B. Hill, 4808 N. 22nd St., Suite 200, Phoenix

LIENS Federal tax liens Gila Inspections & Construction LLC and Paul Taylor, 3980 W. Linda Vista Blvd., Apt. 10105. Amount owed: $1,145.24. Stone Transmission Service and Daniel F. Bojorquez, 527 N. Stone Ave. Amount owed: $2,245.39. Express Tune-Up & Lube and S&H Enterprises Inc., 777 E. 22nd St. Amount owed: $1,327.57. Wa:k Snack Shop and Simon J. Ignacio, 1909 W. Koli Ki Wog. Amount owed: $7,116.81. HRC Automotive and Donald Joseph Boule Jr., 1015 W. Prince Road, Suite 131 PMB 183. Amount owed: $11,932.33. Middle Link Inc. and Keith Collea, 236 E. 30th St. Amount owed: $5,961.00. On A Roll LLC and Teresa A. Moreno, 63 E. Congress St. Amount owed: $4,839.57. Permanent Makeup of Green Valley and Laina F. Beach, 170 N. La Canada Drive, Suite 30A, Green Valley. Amount owed: $2,604.55. Saunmik Investments LLC and Michael Mahaffey and Saundra Mahaffey, 7401 W. Beryllium Lane, Marana. Amount owed: $1,215,604.93. Baruch Enterprises Inc. and Michael Mahaffey and Saundra Mahaffey, 7401 W. Beryllium Lane, Marana. Amount owed: $1,215,604.93.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) La Parrilla Suiza Casa De Mexico and International Restaurants Inc., 5556 E. Speedway. Amount owed: $57,401.92.

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

Cemex Construction Materials South LLC against Sahuarita Sel Storage LLC. Amount owed: $7,529.11. United Metal Products against Moreland Arizona Properties LLC and Avondale Auto Group. Amount owed: $32,722.00.

Release of federal liens Dangle Aviation Inc., 130 E. El Naranjo, Green Valley Strey Painting Company Inc., 9850 E. Banbridge St. Tucson Rehabilitation Medicine & Associates PC, 1921 W. Hospital Drive VPC Medical Billing LLC, PO Box 7118, Chandler 85246 Columbus Glass & Screen LLC, 1226 N. Columbus Blvd. AAA Pool Service of Tucson, 4039 S. Escalante Place D&D Custom Mold Inc., 3318 E. Pennsylvania St. Dermatology Northweset and James E. Bennett, 1845 W. Orange Grove Road, Suite 101 Abigail Smith Insurance Agency and Abigail Smith, 5809 E. 22nd St. Ultima Self Defense and Fitness Center LLC and Alan Dankwerth, 7649 E. Speedway Law Ofﬁce of Trini Armenta and Trini Armenta, 422 E. Ninth St. Pro Click Media Inc., 12601 N. Como Drive, Marana BE&Q Nails LLC, 13190 E. Colossal Cave Road, Suite 120, Vail Southwest Airport Services Inc., PO Box 11189, 85734 All Seasons Desert Landscaping and OND Contractor Services LLC, 2977 E. Manzanita Ave. Elements Salon and Robert & Andrea Allen LLC, 1951 W. Grant Road, Suite 110

Release of state liens AWOL Industrial Supply LLC, 6420 E. Broadway, Suite A200 Bencomo Inc., 3924 W. Ina Road, Suite 306, Marana MRN Ltd., PO Box 17009, 85731 MPower Technologies LLC, 6161 E. Speedway, Suite 205 Claire’s Cafe LLC, 165140 N. Oracle Road, Catalina LB Goodtimes LLC, 1820 E. Sixth St. Ocotillo Blue, 7801 E. Wrightstown Road M.D. Simba Enterprises Inc., 3940 E. 29th St. J.L.J. LLC, 5051 N. Sabino Canyon Road, Apt. 1195 Aries Remodeling & Maintenance LLC, 1891 N. Circulo De La Cienega R&H Gas Service, 1309 E. Benson Highway Kavo & Tunzi LLC, 961 W. Dawson Place KG’s Cafe and Barabara Bros LLC, 8735 E. Broadway Anderson Studio Architects Inc., 1643 N. Alvernon Way, Suite 106 Pant Palace; B&J Pants, and Benjamin Encinas and Jose Luis Peralta, 3402 S. Sixth Ave. O’Bryan Electric LLC, 5750 N. Mountain Lion Lane, Picture Rocks Sean Green Painting LLC, 520 E. Rimrock Place, Oro Valley 49er Country Club LLC, 1700 Country Club Drive, Plano, Texas Berlin LLC, 254 E. Congress St. F&K Food Corp. Inc., 5770 S. 12th Ave. 4625 N. Palisade Dr. LLC, 2825 E. Malvern St.

Release of mechanic’s liens Haugebak Construction Company Inc. against Fry’s Store #286 and Tangerine Crossing Cemex Construction Materials South LLC against Charter School Fund Oro Valley LLC Ascent Aviation Services Corp. against Falcon Air Winroc against Park Mall LLC and General Growth Properties Fire Security Electronics & Communications Inc. against 1150 Drexel LLC and Sandrex LLC Essco Wholesale Electric Inc. against Tucson Medical Investors Ltd., Carondelet Health Network and Retina Associates Atlantic Concrete Cutting Inc. against Leyenda En Tiempo LLC Efﬁcient Electric Inc. against Campbell Ave.

Samantha Bare, Cronkite News Service

PUBLIC NOTICES

US Airways CEO Doug Parker speaking at the National Press Club this month in Washington, D.C.

By Samantha Bare Cronkite News Service Tempe-based US Airways does not need to merge with American Airlines to remain viable, but consolidation would create a stronger competitor than either business can be on its own, according to US Airways CEO Doug Parker. But Parker warns his airline will not wait forever for American, which filed for bankruptcy protection in November. The best time to merge is during bankruptcy proceedings, he said, not after. “US Airways is here now and we’re ready to do this now,” Parker said in a July 18 speech at the National Press Club in Washington, D.C., where he was joined by leaders of three of American’s labor unions. “There’s no guarantee that’ll be the case forever.” A spokesman for American said it will not be rushed into a decision. “This will be a disciplined process guided by the facts and will not be influenced by baseless rhetoric,” American Airlines spokesman Michael Trevino said in a prepared statement. In bankruptcy court, American identified four other airlines, in addition to US Airways, as possible merger candidates. But Parker said a merger with US Airways makes the most sense. He said American is currently missing out on an “enormous source of corporate business” on the East Coast and a merger would help fill in the gaps in cities like Philadelphia, Charlotte, N.C., and Washington, D.C.

“We are the No. 1 carrier at each of our hubs,” he said. “We focus on areas where we do well.” Parker said there is “very little” overlap between the companies, erasing the need to scale back on flights in a merged airline. Rather, consumers will have more options and enjoy a more competitive airline industry because the merger could create a strong challenger to the nation’s two largest airlines, Delta and the new United/ Continental. While he wants a merger, Parker said US Airways – which employs 9,239 people in the Phoenix area – does not need it. “We are producing record revenues, record yield and very strong load factors,” he said. He said merging during American’s bankruptcy would save several “transactional expenses” and create a better environment for working out details of a consolidated corporation. A merged airline would be stronger, meaning better long-term job security for the companies’ combined 100,000 employees, Parker said. The three largest unions representing American’s employees have publicly supported a merger with US Airways since June. Leaders of the unions for American’s pilots, flight attendants and ground workers were seated at the head table for Parker’s speech in Washington. In Parker’s merger scenario, the merged airlines would take the name American and its headquarters would be in Fort Worth, Texas.

InsideTucsonBusiness.com

JULY 27, 2012

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8 JULY 27, 2012

INSIDE TUCSON BUSINESS

PROFILE

Embry-Riddle Aeronautical University grows in S. Arizona By Alan M. Petrillo Inside Tucson Business Embry-Riddle Aeronautical University might be one of the best kept aviation and aerospace educational secrets in Southern Arizona. The university, which has residential campuses in Prescott and Daytona Beach, Fla., operates in 150 locations around the world, including three educational facilities in Southern Arizona — in midtown Tucson, at Davis-Monthan Air Force Base and at Fort Huachuca outside Sierra Vista. Kelly Lawton, director of the Tucson Embry-Riddle locations, says the university’s name says it all. “We’re all about teaching the science, technology and management of aviation and aerospace,” he said. Embry-Riddle’s curriculum covers the operation, engineering, research, manufacturing, marketing and management of modern aircraft and their support systems. The university offers bachelor’s and master’s degree programs in a number of disciplines, as well as training for aviation certificates. Embry-Riddle first came to the Tucson region in the late 1980s, Lawton said, setting up on Davis-Monthan Air Force Base to handle a student body composed of miliBIZ FACTS tary personnel and Embry-Riddle Aernonautical government conUniversity tractors. It expanded to www.erau.edu/ the Army’s Fort • Tucson Huachuca three 5099 E. Grant Road, Suite 201 years ago and the (520) 512-5785 midtown Tucson • Davis-Monthan Air Force Base facility — at Grant 5355 E. Granite St., Suite 108 Road and Rose(520) 747-5540 aviation business adminmont Boulevard a • Fort Huachuca istration, management, — opened in Jani 2288 La Guardia St., Building 52104 – project management, and uary of this year. p Room 1A logistics and supply chain Lawton said l (520) 459-1033 management. Embry-Riddle has m In addition to degree put more than 1,300 students through its degree and cer- program course requirements, Embry-Ridtificate programs at Davis-Monthan yearly, dle students take classes in computer profioperating on five terms over 12 months. The ciency, arts and humanities, social sciences, Fort Huachuca location has grown from a natural sciences and mathematics. Lawton noted that Embry-Riddle offers half dozen students during its first year in operation to more than 100 currently in its degree programs and professional certifications based “on the market needs, as comvarious programs. The newly-opened midtown Tucson fa- municated to us by local industry leaders.” cility is growing strongly, Lawton noted, He added the university has key relationwith 60 students accepted for degree and ships in Southern Arizona with such comcertificate programs and with about eight panies as Raytheon Missile Systems, Bombardier, Universal Avionics, Honeywell, BE new students being taken on each month. While Embry-Riddle is limited by the U.S. Aerospace and Sargent Controls. At the Tucson location, the university ofDepartment of Defense to the number of courses it can offer on Davis-Monthan and fers five delivery methods for its education Fort Huachuca, there are no such limitations — on-site, online, blended (70 percent at the Tucson location. The university offers classroom and 30 percent online), video programs of study leading to bachelor de- conferencing through Eagle Vision Home grees in aeronautics, technical management, live streaming where students are one-onaviation business administration, transpor- one with an instructor, and Eagle Vision tation and aviation maintenance manage- Classroom where the university telecomment. Master’s degrees can be achieved in mutes from its classrooms or participates in

a remote session being hosted elsewhere. “A lot of the students at our Tucson campus are civilians, compared to the many military personnel enrolled at Davis-Monthan and Fort Huachuca,” Lawton said. “But because we have locations worldwide, our students can finish their studies at any of our 150 locations.” Lawton sees further growth for EmbryRiddle in Southern Arizona, predicting the Tucson campus will grow and prosper, even

adding additional degree programs. “We would like to put forward a bachelor of science degree in unmanned aerial systems in the future,” he said. “This particular career field is growing and we are aggressively looking to put it into our curriculum. In addition, a bachelor of science degree in security and intelligence is another one that’s being considered. The demand is out there for both of them, so we’re working through the accreditation channels to make them happen.”

InsideTucsonBusiness.com

JULY 27, 2012

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Café a la C’Art provides new downtown dinner option

Musicians’ benefit event will feature Tucson album premiere

Downtown lunch staple Café a la C’Art is now serving dinner Thursdays through Saturdays. Located on the grounds of the Tucson Museum of Art, Café a la C’Art offers a balance of ambiance, gracious hospitality, value and delicious food. The introductory menu was limited to four appetizers and four entrées on a recent visit. This fall the restaurant plans to launch a more comprehensive dinner menu. Despite the limited choices on my visit, the quality and quantity of what was served was impressive. One of the appetizers was tiger shrimp filled with crab, jalapeno, applewood bacon and mango salsa served with a citrus beurre blanc. Not only was it delicious, the serving of four large plump shrimp cost just $8. A seared red snapper entree with artichokes, capers, grape tomatoes and herbed risotto was an equally generous portion and delicious for $17. In addition to appetizers and entrees, a cup of soup or a house salad is available for $3. Mimicking the rest of the dinner menu, there is a small, but well priced, wine list, too. Dinner is served from 5-9 p.m. Thursdays through Saturdays. • Café a la C’Art, 150 N. Main Ave. — www. cafealacarttucson.com — (520) 628-8533

Mussel your way to the bar Looking for a respite from the heat? Duck inside the Dish Bistro-Bar. Cool, sophisticated and windowless, the midtown venue in the same building as the Rum Runner store, serves a big bowl of steamed mussels in a saffron broth with tomato and oregano, along with crispy bread with house-made four onion butter and a glass of wine or a pint of beer for $12.50. It’s available only at the bar Tuesdays, Wednesdays and Thursdays. The bar and the dining room are small

and intimate — it’s difficult to discrern the dividing line between a couple of tables and the Rum Runner store — but the knowledgeable staff delivers big. And of course the wine list MICHAEL LURIA doesn’t end with the printed menu. Everything in the Rum Runner is also available for $12 over the store price. The Dish serves from 5-9 p.m. Tuesdays through Thursdays and 5-10 p.m. Fridays and Saturdays. • The Dish Bistro-Bar, 3131 E. First St., southeast of the corner of East Speedway and Country Club Road — www.dishbistro. com — (520) 326-1714

Prime rib special is back Fleming’s Prime Steakhouse & Wine Bar is once again running its Sunday night prime rib dinner special. It’s three courses of a salad, the prime rib entrée with one side dish, and dessert. Normally priced at $37.95, through Sept. 2, it’s $29.95 per person. To go with it a bottle B.R. Cohn North Coast Silver Label Cabernet Sauvignon is also specially priced at $40 on Sunday nights, too. Fleming’s is open from 4-9 p.m. Sundays. Other days of the week it doesn’t open until 5 and stays open until 10 or later. • Fleming’s Prime Steakhouse & Wine Bar, 6360 N. Cambpell Ave. in Paloma Village — www.flemingssteakhouse.com — (520) 529-5017

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

An event at 7 p.m. Saturday (July 28) will showcase the premiere performance of Giant Giant Sand’s new album, “Tucson: A Country Rock Opera,” while at the same time serving as a benefit for Mary Charlotte Thurtle, who is wellknown in the local arts community and has been diagnosed with cancer. The Tucson Artists and Musicians Healthcare Alliance (TAMHA) and Pan Left Productions are hosting the event at the Hotel Congress, 311 E. Congress St. There is a suggested donation of $5 to $10 at the door. Thurtle, executive director of Pan Left Productions, and a member of TAMHA was uninsured at the time of her diagnoses and struggling to pay her medical bills. The event will feature a silent auction and a performance by Salvador Duran in addition to Giant Giant Sand, which is due to start a European tour next month.

Art gifts It’s probably never too early to start thinking of holiday gifts. The DeGrazia Gallery In the Sun, 6300 N. Swan Road, has something that can impress out-oftown friends and relatives: 2013 DeGrazia Watercolor wall and desk calendars and annual holiday bell. The wall calendars suitable for framing are $13 each, the desk calendars are $7 and the bells, featuring an “Angel Lullaby” image, are $11.50. They can be purchased at the gallery’s gift shop or online at www.degrazia.org click on gift shop and new items.

Theater Live Theatre Workshop, 5317 E. Speedway, is presenting the Arizona premiere of “Mauritius,” an adult play that tells the tale of two sisters who find a rare

stamp that belonged to their recently deceased mother and then struggle to decide its fate. Written by Theresa Rebeck, the play is presented at 7:30 p.m. Fridays and HERB STRATFORD Saturdays and 3 p.m. Sundays through Aug. 18. Tickets are $18, the box office is open 3-5 p.m. Tuesdays through Saturdays and one hour before show times. Call (520) 327-4242 to make reservations.

Film Some excellent films are opening this weekend at the Loft Cinema, 3233 E. Speedway. First up is the spooky thriller “The Pact” which screened at Sundance this year and is a top-notch horror flick. Also opening is the engaging documentary “Kumare” about a man who decides to create a cult-like following as an experiment, and is shocked at how easily it comes together. Filmed largely in Phoenix, “Kumare” is a powerful story about the need for leaders. Also at the Loft, “Take This Waltz,” about a woman in transition and the choices she makes in her life along with the consequences. The critical favorite “Beasts of the Southern Wild” finally opens in Tucson at the multiplex this weekend with a compelling story of the struggle to survive after a hurricane in New Orleans.

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

10 JULY 27, 2012

INSIDE TUCSON BUSINESS

MEDIA

DirecTV-Viacom was just first battle in changing TV world By David Hatfield Inside Tucson Business There have been fights before between TV program providers and cable and satellite services but the one this month between Viacom and DirecTV was one of the nastiest and may well be just the first battle in a changing environment of how people watch TV. And more importantly how they pay for it. Viacom’s 26 channels — including Nickelodeon, MTV, Comedy Central, BET, VH1, CMT, Spike TV and TV Land — were taken away from DirecTV’s 20 million customers for nine days until the two sides reached their deal July 20. DirecTV acknowledged it lost some subscribers and made deals with other customers to keep them.

Viacom lost ratings for its channels and subscriber fees. In the end, the two sides reached a new seven-year deal. While the details weren’t announced, it has been widely reported that Viacom will get a 20 percent increase in subscriber fees the first year then singledigit percentage increases in subsequent years. The new figure will be $2.80 per month

per subscriber, which when you add it up will total $600 million in the first year. Viacom had been seeking a 30 percent increase to about $3.68 per subscriber, according to estimates. Analysts are keying on the fact that DirecTV won’t have to carry Viacom’s new premium pay TV movie channel Epix. Program providers with popular channels use that leverage to try to force cable and satellite companies into taking their new channels as a condition of keeping the popular channels. The cable and satellite companies then pass the added costs on to subscribers, though the industry officials that has become more difficult to do in the face of customers who can now access more programming through online sources. Meanwhile, the fights go on. Dish Network’s 14 million subscribers have been without AMC since the end of June. Dish officials say the channel was dropped because AMC was forcing it to also carry low-rated IFC and WE channels. AMC says the dispute really has to do with a 2008 lawsuit that may cost Dish $2.5 billion. Later this year, CBS is due to renegotiate its distribution agreement with DirecTV and Fox’s deal with Comcast comes up for renewal.

Pac-12 TV update There’s no deal yet with either of the two big satellite providers, but there is other progress to report on the new Pac-12 networks that are on track to debut Aug. 15. • Cox Communications confirms it will carry the regional Pac-12 Arizona on channel 75 and in high definition on channel

1075 as part of its Digital Expanded package, which it offers at a normal basic price of $34.99 a month. (HD, DVRs and other items can cost extra.) • Comcast, which had already confirmed it will offer Pac-12 Arizona on channel 103 and in HD on channel 598, says the new channel will be part of its Digital Starter package, which sells for a base price of $29.99 a month. • A national version of the Pac-12 Network also will be available on Comcast channel 283 and most likely on Cox, though officials couldn’t confirm the details. In both cases, the national version is available as part of a separate sports tier, which both Cox and Comcast offer at $7 per month. This can be good in cases when you might want to keep track of another Pac-12 besides what’s on Pac-12 Arizona. • Subscribers to Western Broadband cable in SaddleBrooke and Cable One, which serves Bisbee, Clifton, Globe, Lakeside/Pinetop, Morenci, Naco, Safford, Show Low and Thatcher, will also have access to the new channel under an agreement announced this week between the Pac-12 and National Cable Television Cooperative. • It’s difficult to tell where negotiations are with DirecTV and Dish Network. Pac-12 Commissioner Larry Scott this week said he is optimistic agreements can be reached but offered no timetables. (On a lark, I asked a DirecTV sales rep about the channel. She put me on hold, came back and apologized for the delay and said it would be available but it would be part of the sports tier, which by itself costs $20 a month. Nobody else at DirecTV would confirm that.) • More names: The Pac-12 announced a dozen more people have been hired as on-

air announcers, many of whom played in the conference. Among them is former University of Arizona Wildcat Glenn Parker, who will be an analyst paired up with Ted Robinson, who is in London covering diving events for NBC’s coverage of the Summer Olympic games. Their first assignment will be the San Jose State-Stanford game at 7 p.m. Aug. 31. (The Wildcats play Toledo the next night, Sept. 1, in a game that will be on ESPNU.) • Besides live games, the Pac-12 network is putting together other shows including half-hour previews of each team in the conference and then during the season there will be condensed hour-long replays of all Pac-12 home games each week. Game coverage will also include live pregame, half-time and post-game shows produced at the Pac-12 networks’ studios in San Francisco.

KUAZ schedule changes NPR outlet KUAZ 89.1-FM/1550-AM has juggled its weekend schedule and added two new shows to its Saturday line-up: The shows are “Snap Judgment,” a new peoplecentered feature documentary series that uses a lot of music in its storytelling, and “Living on Earth,” an environmental news program. Both are hour-long shows. “Snap Judgment” airs at 1 p.m. Saturdays and “Living on Earth” airs at 2 p.m. The comedy-quiz show “Whad’ya Know?” hosted by Michael Feldman, which had been airing from noon-2 p.m. Saturdays, has been dropped by KUAZ.

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

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InsideTucsonBusiness.com

JULY 27, 2012

INSIDE TRAVEL

Monthly passenger traffic plummets at Tucson airport, but 2012 still up, slightly By David Hatfield Inside Tucson Business After a strong start to the year, passenger traffic at Tucson International Airport plummeted in May and June to the lowest levels those months have had in nine years. As a result, passenger numbers are up just 0.3 percent through the first half of 2012, according to statistics from the Tucson Airport Authority (see chart). The June total of 286,956 passengers was down 3 percent from 295,947 in June 2011. It was the airport’s slowest June since 2003 when 281,737 passengers went through the airport. The May drop was even more, especially since May 2011 was the airport’s second busiest month last year. The numbers dropped 3.1 percent this year to 314,261 from 324,336 a year ago. Like June, this year’s May was the slowest May since 2003. For as negative as these numbers seem, airlines cut capacity back even more. “Passengers are responding and flying out of Tucson,” said Mary Davis, senior director of business development and marketing for Tucson Airport Authority (TAA). “That’s a positive we can take — and will take — take to the airlines in meetings we’ve got scheduled in the fall.” Airline seat capacity going out of Tucson was down 10 percent in May to an average of 6,062 available seats per day and down 11.5 percent in June to an average of 5,679 seats per day. Looking at it another way — from the airlines’ view — Tucson passengers filled 85.6 percent of available seats in June, up from 78.6 percent in June 2011, and a whopping 89.6 percent of seats in May, up from 83.3 percent for the same month in 2011. That 85.6 percent of seats filled in June compares to an average of 85.3 percent of seats filled system-wide by the airlines serving Tucson International Airport. The biggest cutbacks in available seats from Tucson were to Denver due to the May pullout of Frontier Airlines and a temporary reduction in flights by United. In June 2011 there were six daily flights to Denver. This June that was down to four — two on Southwest and two on United. Seat capacity to Denver was down 42 percent to an average of 375 per day, from 648 a year ago. Among other significant cuts, US Airways reduced its seat capacity by more than 20 percent, United dropped one daily flight to Houston reducing capacity on that route by more than 23 percent, and American dropped one daily flight to its Dallas-Fort Worth hub, eliminating 15 percent of available capacity on that route. The TAA’s Davis says airlines have already put out schedules for this winter that reinstate many of the flights. “The airlines are being much more careful in

scheduling that reflects seasonality demands,” she said. Half-way through 2012, passenger numbers at Tucson International Airport have been down all but two months. But those two months of increases — February was up 3 percent and March was up 5.2 percent — have so far overcome the four months of decreases, which except for May and June, amounted to less than 1 percent each month.

Service notes The seasonality of airline scheduling will be reflected in coming weeks and months. Among the schedule changes airlines have out: • Delta Air Lines is dropping its daily nonstop flights to Minneapolis-St. Paul for the entire month of September. The flights — one each way — will operate daily except Wednesdays and Saturdays the last two weeks of August and then resume daily again Oct. 1 through the end of the year. In January, the schedule drops back again to three days a week through mid-February. • United Airlines’ cutbacks to just two daily round-trip flights to Denver will remain in effect until Nov. 4 when two additional flights will be reinstated. • Barring a last-minute change, Southwest Airlines won’t be bringing back it’s non-stop flights between Tucson and Baltimore during the winter season. The airline has published its schedules through March 8 without the flights. The airline offered the flights from Feb. 12 through April 9 this year. Although the announcement of those flights didn’t come until December last year, that had to do with the fact that Southwest found itself in a situation with available aircraft after it failed to win approval to launch new flights at Reagan National Airport. Southwest isn’t facing a similar situation this year — and in fact, this month started flights from Reagan to Austin, Texas, after winning approval from the U.S. Department of Transportation.

Sky Harbor down, too Phoenix Sky Harbor International Airport has also seen its passenger counts drop lately. The airport, which has only reported numbers through May, saw its May numbers drop 2 percent from a year ago and its April numbers drop 2.2 percent. Through the first five months of 2012 Sky Harbor passengers have totaled 16.91 million, down from 16.92 million for the same months in 2011.

Air service survey results to be unveiled to business leaders Inside Tucson Business Business leaders are invited to hear the findings of an air travel demand survey that will be unveiled at 3 p.m. Aug. 8 at the Doubletree Hotel at Reid Park Hotel, 445 S. Alvernon Way. Jamie Kogutek, an air services consultant hired by the Tucson Airport Authority, will reveal the results of the survey and highlight opportunities for future air service during the 90-minute presentation. The survey conducted in June elicited responses from 512 companies. Bill Holmes, chief operating officer of the Tucson Metro Chamber and leader of a steering committee working to improve air service, said the survey findings and feedback from the business community is critical to developing successful efforts to showing airlines there is demand for new and expanded airline service at Tucson International Airport. The steering committee is considering a private-sector incentive program to stimulate air service development. To reserve a place at the Aug. 8 presentation, send an email to Arlene Chiovetti at achiovet@tucsonchamber.org . There is no charge to attend the meeting.

TUCSON INTERNATIONAL AIRPORT 2012 PASSENGER STATISTICS The number of passengers going through Tucson International Airport dropped 3 percent in June to 286,956, from 295,947 in June 2011. It was the second consecutive month of decreased passenger totals after three consecutive months of increases. The result is that for the first half of 2012 passenger numbers are up just 0.3 percent over 2011. This chart shows each airlines’ passenger totals and market share for the first six months of 2012 compared with the same six months of 2011.

Airline

Non-stop destinations

Southwest

630,814

33.6%

636,615 34.0%

-5,801

-0.9%

411,546 22.0%

+36,460

+8.9%

263,492 14.1%

+12,297

+4.7%

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

American

448,006

23.8%

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

United (Continental)

275,789

14.7%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways

205,706

10.9%

226,778 12.1%

-21,072

-9.3%

201,540

10.7%

196,239 10.5%

+5,301

+2.7%

Phoenix

Delta

Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska

63,331

3.4%

53,896

2.9%

+9,435

+17.5%

53,796

2.9%

84,633

4.5%

-30,837

-36.4%

+5,783

+0.3%

Seattle

Frontier

Service discontinued as of May 18

Total Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Business Travel appears the fourth week of each month in Inside Tucson Business.

Jan.-June 2012 Jan.-June 2011 Change Passengers Market Passengers Market Passengers %

1,878,982

1,873,199

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

12 JULY 27, 2012

INSIDE TUCSON BUSINESS

MEDIA SOCIAL MEDIA IN THE WORKPLACE

Privacy, legal and business issues of website disclaimers

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.

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RSVP by Friday, August 17 TucsonChamber.org

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We all have encountered the inevitable website disclaimer. These disclaimers typically contain boilerplate language governing the terms and conditions for using the website. Through these disclaimers, website owners or publishers try to limit their liabilities arising out of website usage for claims such as libel or defamation, invasion of privacy, misrepresentation, deceptive trade practices, or copyright infringement. But what do these disclaimers really mean for the website owners on the one hand or for the businesses that access the site on the other hand? There are a variety of questions that website owners or businesses pose regarding website disclaimers. Do they actually protect against a lawsuit? Do consumers read them? Do they cause unintended problems, such as the inadvertent transfer of intellectual property licenses? • What should be included in a website disclaimer? Typically, a website disclaimer should include terms disclaiming any warranty, should limit liability of the owner and host of the website, and should include a term providing that use of the website constitutes an agreement that the limitations of liability, lack of warranties, and terms of use are reasonable. Specific terms may be needed, depending on the website and the business. Most websites should contain a privacy statement and terms and conditions of use. For the privacy statement, the website should comply with federal and state privacy laws that protect individuals from having their personal information misused. Because websites have the ability to collect and process enormous amounts of personal information, a website owner should craft and use a privacy policy that clearly states how personal information will be used, stored and disposed of. It is important for website owners and businesses to understand that a patchwork of laws — both on the federal and state level — attempt to regulate privacy on the Internet in a variety of ways. • Are intellectual property rights of the website user at risk? Some website disclaimers or terms of use policies provide that the user grant the website owner a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any intellectual property content the user posts on or in connection with the website. Facebook has a similar policy. Not much law exists where such policies have been challenged. The consequence of such a policy, however, could be substantial to the user. If the user were to post a video onto Facebook that ultimately “went viral” and became very

valuable, Facebook may own and control the value of that video. • How can businesses address the issue of who owns their business content? Employers and businesses may TROY R. RACKHAM want to consider policies addressing who owns the business-related content that an employee creates. Many businesses encourage the use of LinkedIn to develop and store marketing contacts. When the SUSAN E. CHETLIN departing employee leaves, who owns those contacts? Historically, an employer could ensure that it controlled marketing contacts because it would have stored them in its own system or database. Nowadays, when the contacts are stored on a Web-based system accessible from anywhere with a password, the considerations are different. It is important for businesses that rely on employees creating LinkedIn or similar contacts to clearly define who owns and can use those contacts, particularly when the employee who has developed those contacts on the employer’s dime leaves. As explained above, some websites’ terms of use policies provide that the websites own the user-generated content. If that content were generated by an employee who was paid to generate content valuable to the employer, the employer should protect that content with a policy specifically addressing ownership of user-generated content. Likewise, the employer should have a plan in place to deal with departing employees, especially when the employer might find itself in the difficult circumstance of having to capture the user-generated content quickly. We hope that this brief introduction has highlighted some of the thorny issues, so business owners can better protect their intellectual property and user-generated content against legal liability and inadvertent loss of rights.

Contact Troy R. Rackham, an attorney Of Counsel at Fennemore Craig, at trackham@fclaw.com. Contact, Susan E. Chetlin, a director and Intellectual Property Practice

InsideTucsonBusiness.com

JULY 27, 2012

GOOD BUSINESS WOMEN IN BUSINESS

How businesses are creating their own buzz ... marketing Once upon a time, marketing options were simple and limited to buying airtime on a handful of TV and radio stations or placing ads in local newspapers or magazines. Now you can stay up all night with hundreds of channels of TV and radio. And the Internet is 24/7! With super technology comes tons of advertising. Today’s market is frenzied; your potential client is continuously bombarded, more difficult to reach and on overload. “Buzz marketing” is all about word-of-mouth promotion. Today, it is an increasingly popular marketing tactic. Do you need to reach everyone? No. Abandon the temptation of throwing your marketing plan against the wall to see what sticks. Allocate your marketing dollars to targeting a profitable mix of prospects and existing customers while at the same time, connecting with a circle of influencers in your market. First, take care of your golden geese. Typically, 80 percent of business comes from 20 percent of your customer base. Treat those customers well and make them feel appreciated. Casinos figured this out by awarding high-rollers with freebies. They understand they’ll receive a return (and more) on their investments. Keep your clients happy. Offer them premium discounts. Create a customer loyalty club, where frequent purchasers enjoy additional or instant discounts. Provide these clients with “private preview” sales or exclusive offers. The more special you make them feel, the more they’ll likely return (and buy). Just as important, they’ll rave about your business. Be creative, think outside the box and create an existing customer retention plan that knocks clients socks off. Satisfied, raving clients is one easy form of Buzz Marketing. Before you run out the door to get new clients, have a plan. Start by identifying your target customer. What is the demographic you want to reach? Married, female, age 30 to 55, middle-class, median household income of $60,000 to $100,000 are some criteria for one target demographic. With a defined target you can now determine how, where and by whom this target client is influenced. Why did I include that particular demographic? I am a member of and serve on the board for the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO). I have come to understand through NAWBO and running my own business that this demographic has both household and business decision makers; strong purchasers who promote Buzz Marketing. This

demographic is an ideal target audience in almost every market. Consumers today often dismiss and distrust advertising. Because of this, word of mouth referrals are more important MORELLA BIERWAG than ever. Consumer marketers get it and are focusing on client product placement through buzz marketing, an increasingly popular tactic. An example of buzz marketing is when a company reaches out to influencers within its target audience and provides free merchandise or services to use, evaluate and share. In turn, these influencers talk-up the product or service and influence others (assuming they like what they’ve received). The Internet has transformed this approach into a powerful tool. Instead of a local circle of friends, social networking allows these influencers to reach millions virtually worldwide. They key is to seek out influencers where they “live” and start sharing your products or offer your service for free. One company recently launched a new product by identifying key online discussion forums and bloggers who catered to its audience. The company arranged a free product give-away on the forums and sent products and samples to the bloggers. The forums buzzed for weeks with positive reviews and glowing appreciation of the free gifts. This simple outreach helped propel a new product into a top selling product. And at the same time contributed a positive brand image in the minds of the recipients. A small investment in time, product and mailing costs netted favorable buzz and loads of new customers. These customers were promptly rewarded with additional promotional offers once they made their first purchase. Pinterest.com is another example of buzz marketing and a new concept that has recently exploded. Try it out and see where it takes you. Plan first, incorporate your existing clients then reach out to influencers. Create your own buzz...marketing!

Contact Morella Bierwag, communications consultant and owner of Let’s Go Communications LLC, at mo@letsgocommunications.com or (520) 401-9111. Bierwag is a member of the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO), whose members contribute this monthly column.

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Next up: Business and industrial parks, Commercial offices, Shopping centers

Foothills deli to merge with pizza kitchen

Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are: â&#x20AC;˘ Aug. 3: Health maintenance organizations, Preferred provider organizations and Indemnity plan providers, Supplemental plans and Childcare providers â&#x20AC;˘ Aug. 10: Business and industrial parks, Commercial office, Shopping centers â&#x20AC;˘ Aug. 17: Asset management firms, Aeronautical firms â&#x20AC;˘ Aug. 24: Highest paid city and county officials, Salary comparison of regional government officials â&#x20AC;˘ Aug. 31: New car dealers 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

Vantage West opens Catalina branch Vantage West Credit Union has opened a branch in Catalina. The branch, at 16460 N. Oracle Road, is the credit unionâ&#x20AC;&#x2122;s 11th Pima County location and 15th location in Arizona. The branch will be the first credit union to serve the area. Vantage West is Southern Arizonaâ&#x20AC;&#x2122;s largest credit union with more than 115,000 members and $1.1 billion in assets.

Radiation Therapy Center opens in foothills The Center for Neurosciences has opened a new Radiation Therapy Center, the eighth clinical center on its River Road campus. The new center, at 2450 East River Road, features advanced radiation technology for the treatment of brain tumors and other neurologic cases. The new center brings the total footprint for the Center for Neurosciences to more than 40,000 square feet. The Radiation Therapy Center adds to the practiceâ&#x20AC;&#x2122;s seven other clinical centers of excellence, including the Brain Tumor Center, Epilepsy Center, Imaging Center, Interventional Pain Management Center, Movement Disorders Center, Multiple Sclerosis Center and Stroke Center.

Shlomo & Vitoâ&#x20AC;&#x2122;s New York Delicatessen is expanding and merging with Vitoâ&#x20AC;&#x2122;s Pizza Kitchen, which closed its location on Fort Lowell Road earlier this year. To introduce the expanded menu, Shlomo & Vitoâ&#x20AC;&#x2122;s is partnering with the Leukemia Lymphoma Society and will donate 10 percent of proceeds from pizzas sold Aug. 1726, when they are added to the menu. As part of the events surrounding what the restaurant is billing as a â&#x20AC;&#x153;reopening,â&#x20AC;? Shlomo & Vitoâ&#x20AC;&#x2122;s will host a â&#x20AC;&#x153;Tucson Hunger Game,â&#x20AC;? from 6-8 p.m. Aug. 19 in the courtyard in Plaza Colonial where the restaurant is located. Local high school football teams will compete for their chance to win proceeds of funds raised that day. Lineman from each school will compete in four quarters with four rounds of food. The lineman who eats the most in the competition will win the money for his school. Shlomo & Vitoâ&#x20AC;&#x2122;s, 2870 E. Skyline Drive, is open daily starting at 8 p.m. and closes at 9 p.m. Sundays through Thursdays and 10 p.m. on Fridays and Saturdays. The website is www.shlomoandvitos.com/ .

ENTERTAINMENT/SPORTS

Former Copper Bowl now Buffalo Wild Wings Bowl The football bowl game that started out in 1989 as the Copper Bowl and was played in Tucson through 1999 before being moved to the Phoenix area is getting a new name: the Buffalo Wild Wings Bowl. The Minneapolis-based restaurant and sports bar chain has taken over the naming rights for the game played each December at Sun Devil Stadium in Tempe. Terms of the deal were not disclosed. For the past 14 years, the naming rights were held by Insight Enterprises, which moved the game from Tucson to Phoenix where it was played at what is now Chase Field until 2006 when it moved to Sun Devil Stadium in Tempe. Earlier this year, Insight said it wanted to end the sponsorship. The Fiesta Bowl committee, which runs the bowl game, had tentatively renamed it the Valley of the Sun Bowl. The game, which this year will be on Dec. 29, currently has a deal to feature teams from the Big Ten and Big 12 conferences.

HEALTH CARE

Fed creates Arizona health insurance co-op Under provisions of the Affordable Care Act, the federal government has loaned an Arizona nonprofit group more than $93 million to start a small-group healthcare cooperative. Compass Cooperative Health Network was awarded the loan to create the Con-

InsideTucsonBusiness.com

JULY 27, 2012

BRIEFS sumer Operated and Oriented Plan, which will provide health insurance options for small businesses and individuals. To date, non-profits in 14 states have been awarded $1.151 billion to start similar co-ops.

COMMERCIAL REAL ESTATE

Luxury apartments completed on NW side HSL Properties has completed Encantada at Riverside Crossing, a 304-unit, luxury apartment community at 1925 W. River Road. The $32 million project, which includes a 69,000 gallon resort-style pool & spa, a THX certified theater, professional fitness center and Starbucks coffee bar, is already 90 percent leased. It employed 63 sub-contractor companies during its planning and construction, of which 53 were Tucson companies. The project paid out approximately $22 million to local contractors, and it took an estimated 45,000 work hours to complete.

South Tucson business park noticed for foreclosure Madera Business Park, 2750 S. Fourth Ave., South Tucson has fallen into default and is scheduled to be sold at public auction in October. Public records list the original principal balance of $1.5 million for the 35,200 square foot industrial/office complex. The site’s owner is Madera Business Park LLC, 245 S. Plumer, Suite 4. According to public records, the firm is comprised of commercial real estate investor Ralph J. Colwell and the Colwell Family Limited Partnership. The beneficiary is Maple Trust 2012-1 of New York, in care of the Garrison Investment Group. The auction is being handled by the Phoenix law firm of Carson Messinger. The trustees’ sale is at 11:30 a.m., October 24, at the Pima County Court Building, 110 W. Congress St.

CONSUMER ISSUES

BBB warns of scams for school loans, grants Better Business Bureau of Southern Arizona advises students and parents to be wary of websites, seminars or other schemes that promise to find scholarships, grants or financial aid packages for an upfront fee. Some of these companies promise a money back guarantee, but set so many conditions that it can be almost impossible to get a refund. Others tell students they’ve been selected as finalists for a grant or scholarship but must pay a fee to be eligible for the award. In some cases, for a fee, a company agrees to handle the paperwork that makes a student eligible for financial aid. However, the standard application process for financial aid is most often the Free Application for Federal Student Aid (FASFA), which students

and their parents can complete themselves at no cost by visiting www.fafsa.ed.gov. College financial aid offices require the FAFSA to assess a student’s eligibility for need-based aid. Most universities are willing to advise prospective students on how to apply for aid. They also will answer questions about financial aid packages offered when a student is accepted for admission.

CIVIC

Rotary Club names grant recipients The Rotary Club of Tucson has announced that Reading Seed, a program of Literacy Connects, Pima Council on Aging and the YWCA are the 2012 Rotary Community Grant recipients. These organizations will receive funding from the net proceeds of the club’s signature fundraising event, the 2012 Tucson Classics Car Show, to be held on October 13th at St. Gregory College Preparatory School. Last year, three nonprofits shared in $80,000 in Rotary Community Grants.

OV Chamber awards 3 scholarships The Oro Valley Chamber of Commerce has awarded three students $2,000 scholarships. Britten Hernandez, Taylor Patterson and Madison LaMaster were recognized at the event. Hernandez, a Canyon del Oro graduate, plans to study neuroscience or psychology at the University of Arizona. LaMaster, also a CDO graduate, is going to study physical therapy at Northern Arizona University. Patterson earned an associate’s degree at Pima Community College and plans to study biology and pre-medicine at Arizona Christian University. Funds were awarded based on academic performance, community involvement, an essay, two letters of recommendation and financial need. The scholarship fund was named after Steve Engle, an Oro Valley founding father and the town’s mayor from 1978 to 1990.

The merger creates an agency with nearly 100 employees and a budget of $5.1 million. The agency’s programs include counseling, anti-bullying and other prevention programs, services for older and disabled people, information and referral, and the Center for Community Dialogue. The New Beginnings division helps homeless children, youth and families through outreach, shelter, support, education and housing.

KUDOS

Summit Hut wins outdoor retailer of the year award Tucson’s Summit Hut has been named 2012 retailer of the year by the Grassroots Outdoor Alliance. a collective of independent retailers and vendor partners who strive

to protect and promote the experience of outdoor enthusiasts across the United States. Summit Hut, with locations at 5045 E. Speedway and 605 E. Wetmore Road, was selected by the 65 vendor partners as this year’s top retailer. This award reflects the retailer’s dedication to being a world-class retailer, providing the best service and relationships to customers, the community and vendor and industry partners. Summit Hut has been in business for 43 years specializing in hiking, camping and backpacking gear. It is owned by Dana and Jeremy Davis. Gassroots Outdoor Alliance is made of operators of 70 independent specialty outdoor stores in North America. The award to Summit Hut was given out at the organization’s June summer show in Ogden, Utah.

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NONPROFITS

Our Family, New Beginnings merge into one nonprofit Two Tucson-based nonprofits, Our Family Services and New Beginnings for Women & Children, merged as of July 1 with the combined organization now going under the name Our Family Services. As part of the merger, the agency is expanding its homeless services division under the name New Beginnings. Patti Caldwell, who had been executive director of New Beginnings since January 2011, heads up the merged agency with the retirement at the end of June of Sue Krahe, who had been executive director of Our Family Services.

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Business Awards: More Than Just A Fancy Paperweight Tuesday (Aug. 14) 10:30 a.m. to 1:30 p.m. Doubletree Reid Park 445 S. Alvernon Way Contact: Morella Bierwag info@ nawbotucson.org (520) 326-2926 Cost: $25 members/ $30 others www.nabwotucson.org NAWBO panel of award presenters and past winners moderated by Lorraine Harrington discuss the personal and professional beneﬁts of receiving an award and offer tips on creating a winning application. Panelists include Marion Hook of Adobe Rose Inn, Lesli Pintor of National Bank of Arizona, Jan Woods of Veterinary Specialty Center of Tucson, Kim States of the Better Business Bureau and Louise Abbott of Arizona Small Business Association. 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

Marana Chamber of Commerce Mixer Fourth Tuesday of each month 5:30 to 7:30 p.m. Locations vary Information: www. maranachamber.com Metropolitan Tucson Convention

& Visitors Bureau First Tuesday Monthly Luncheon 11:45 a.m. to 1 p.m. Arizona Inn 2200 E. Elm St. RSVP Required: (520) 770-2131 or www.visitTucson. org/PartnerRSVP Cost: $25 MTCVB Partners; $30 Others NAWBO Monthly Mixer Third Thursdays 4 to 7 p.m. Locations vary Info: info@ nawbotucson.org NAWBO Monthly Breakfast Fourth Tuesdays, 8 to 9:30 a.m. Locations vary Info: Morella Bierwag, (520) 326-2926 or info@nawbotucson.org NAWBO Monthly Luncheon Second Tuesdays 10:30 a.m. to 1:30 p.m. Locations vary Info: Morella Bierwag, (520) 326-2926 or info@nawbotucson.org

National Association of the Remodeler’s Industry (NARI) Tucson Third Tuesday 5:30 p.m. Varies, call for location Information: (520) 310-3386 rebecca@ nariofsouthernarizona. com Cost: Free to members and ﬁrst timers Networks @ Work First Wednesdays 11:30 a.m. to 12:30 p.m. Sullivan’s Steak House 1785 E. River Road Contact: Ricardo Carrasco at (520) 977-8812 or Ricardo@ gsﬂoans.com Cost: Meal from menu ($12-$25) Networking Club in Northwest Tucson Ali Lassen’s leads club First Wednesday noon to 1 p.m. Sullivan’s Steak House 1785 E. River Road RSVP: Johnna Fox

(866) 551-3720 Networking Entrepreneurs of Tucson Networking breakfast First and third Wednesday 7 to 8:30 a.m. Hometown Buffet 5101 N. Oracle Road Information: (520) 240-4552 Northern Pima County Chamber of Commerce Monthly Membership Breakfast Fourth Thursday of the month 7 to 8:30 a.m. El Charro Café 7725 N. Oracle Road http://the-chamber.com Northwest Power Group (referral group) Mondays 7:30 a.m. to 8:30 a.m. Hilton El Conquistador Country Club, 10555 N. La Cañada Drive RSVP: (520) 229-8283 Cost: $50 one-time fee (ﬁrst two visits free) Northwest Power Group Networking business group Every Tuesday 7:15 to 8:30 a.m. Village Inn 6251 N. Oracle Road RSVP: Don at (520) 777-4240 Cost: Breakfast Oro Valley Business Club Monthly Luncheon First Thursday of each month. Carrabbas Italian Grill 7635 N. Oracle Rd. Information: www. scoretucson.org, (520) 670-5008 Cost: $15 members and non-members Oro Valley Kiwanis Club Every Wednesday 6:45 to 8 a.m. Resurrection Lutheran Church Outreach Center 11575 N. 1st Ave. Information: Gary Kling (520) 818-3278

Pima Rotary Club Weekly meeting Every Friday except the last Friday of the month 11:30 a.m. to 12:30 p.m. Chad’s Steakhouse 3001 N. Swan Road Information: www. pimarotary.org Note: Bring your own lunch

wt-us.com Cost: $20 members, $30 nonmembers

Pima Rotary Club Monthly membership mixer Last Friday 5 to 7 p.m. Location varies Information: pimarotaryclub@ yahoo.com

Saguaro Rotary Club Every Tuesday 12:10 to 1:15 p.m. The Manning House 450 W. Paseo Redondo Information: Fred Narcaroti (520) 628-7648

Project Management Institute (PMI) Tucson Chapter Second Tuesday of the month 5:30 to 7:30 p.m. Hotel Arizona 181 W. Broadway Information: www. pmi-tucson.org or archboldk@ consulting.ky Cost: $25 members, $30 nonmembers Rotary Club of Tucson Every Wednesday Noon Doubletree Reid Park Hotel 445 S. Alvernon RSVP: Mary Laughbaum (520) 623-2281 www.tucsonrotary.org Rotary Club of Tucson Sunrise Thursdays 7 to 8:10 a.m. Arizona Inn 2200 E. Elm Street Information: rsuskind@mac.com Rotary Club of Tucson Sunset Tuesdays 6 to 7:30 p.m. El Parador Restaurant 2744 E. Broadway Information: (520) 349-4701 SAAEMA Monthly Program Third Tuesday 11:30 a.m. to 1 p.m. Viscount Suites Hotel 4855 E. Broadway Information: www. saaema.org RSVP: m.sage@

Saguaro Business Club Business leads meeting Every Thursday 7 to 8 a.m. Mimi’s Café 120 S. Wilmot Road RSVP: (520) 891-5430

Saguaro Toastmasters Every Monday 6:30 p.m. Ward 6 ofﬁce 3202 E. First Street Info: Mark Salcido (520) 991-6127 or gerontologist@ hotmail.com http://saguaro. freetoasthost.com SCORE Southern Arizona free business counseling Every Tuesday, Wednesday and Thursday 9 a.m. to 1 p.m. SCORE Main Ofﬁce 330 N. Commerce Park Loop Info: (520) 670-5008 SCORE Southern Arizona free business counseling Every Wednesday 9 a.m. to noon Oro Valley Library 1305 W. Naranja Drive Call Oro Valley Library at (520) 229-5300 to schedule SCORE Southern Arizona free business counseling Every Monday 10 a.m. to 1 p.m. Nanini Branch Library 7300 N. Shannon Road Info: (520) 791-4626 SCORE Southern Arizona free business counseling First and third Tuesday 9 a.m. to 1 p.m.

ASBA 4811 E. Grant Road, Suite 261 Call ASBA at (520) 327-0222 to schedule SCORE Southern Arizona free business counseling Every Tuesday 9 a.m. to noon Marana Urgent Care Center (South Classroom) 8333 Silverbell Road Info: (520) 682-4314 Small Business Commission Meeting Fourth Thursday 3 to 5 p.m. Mayor and Council chambers 255 W. Alameda First ﬂoor Info: Ellen Hitchings, (520) 791-4343 ext. 245 or small.business@ tucsonaz.gov The S.M.A.R.T. Group Every Friday 12 to 1:30 p.m. Nova Home Loans Multi-Media Conference Room 6245 E Broadway Blvd., 5th Floor $25 Members $45 nonmembers Contact: Dale Dillon Lips (520) 429-6000 or dillonadvisory@ gmail.com Society for Human Resource Management Greater Tucson Chapter Second Tuesday 11 a.m. to 1 p.m. DoubleTree, 445 S. Alvernon Way Membership:Garrett Kowalewski, (520) 647-9100 garrettk@ staffmattersinc.com RSVP by Thursday prior to meeting: www.shrmgt.org Solutions Forum Fourth Monday Noon to 4 p.m. Clements Insurance 6245 E. Broadway, Suite 310 Information: 1-800716-9626 or (480) 200-5678 RSVP required Open only to business owners and divisional heads

InsideTucsonBusiness.com

JULY 27, 2012

PEOPLE IN ACTION

STEVE HAGAN

NEW HIRES HTG Molecular Diagnostics has hired Steve Hagan as vice president of molecular diagnostic sales. Hagan joins HTG Molecular Diagnostics from Ventana Medical Systems, a member of the Roche group, where he most recently served as the senior director of digital pathology and workflow commercialization. Karen Herther, an Arizona registered geologist with 18 years of environmental regulatory compliance and project management experience, has joined Rosemont Copper as water resource superintendent. Herther will oversee and manage all water quality and quantity issues. She also will be responsible for all permit compliance associated with water issues and working with operations to coordinate

both long-term and daily water management.

Hilton Tucson El Conquistador has hired of Ronald Collins as the director of sales and marketing. As the principal of this vital function, Collins will oversee all aspects of sales and marketing for the award-winning resort which is set to complete a $6 million transformation this summer. Collins previously served as director of sales and marketing at The Westin La Cantera Hill Country Resort, San Antonio, Texas. The Jewish Community Foundation of Southern Arizona has Tracy Salkowitz as executive director. Tracy has a master’s degree in social work from the Wurzweiler School of Social Work in New York and more than 30 years of non-profit management experience. For the past 10

years, Tracy has been an organizational development consultant working with such non-profits as the Mary Wohlford Foundation; UC Berkeley Mack Center on Non-Profit Management and UCSF Department of Emergency Medicine. AWARDS The University of Arizona Sarver Heart Center’s Investigator Awards Program announces the following recipients. Novel Research Projects in the Area of Cardiovascular Disease and Medicine: Christopher Pappas Ph.D., received awards from the families of Stephen Michael Schneider and Frank Frazer and “Alex” Frazer for his project, “Elucidating the Cause of Dilated Cardiomyopathy in the Lmod2 Knockout Mouse.” Jingjing Liu M.D., Ph.D., received an award made possible by Florence Jaffe to study the

KAREN HERTHER

TRACY SALKOWITZ

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print. “Function of S1P Signaling on HDL Cholesterol Efflux,” under the mentorship of Hussein Yassine, MD, assistant professor of clinical medicine, Section of Endocrinology. Janet Funk M.D., will use the J.G. Murray Award for her study of the “Efficacy of a Botanical Dietary Supplement in Lowering Cardiovascular Risk in Type 2 Diabetes Mellitus (T2DM).” James Nguyen M.D., will use the Doris Griswold Award to study the “Characterization of LV Strain Patterns in Patients with Elevated Left Atrial Pressure and Pulmonary Hypertension.” His mentor

is Aiden Abidov, MD, PhD, associate professor of medicine and radiology. Dr. Abidov received the William and Dorothy Shaftner Award for his research project, “Double Inversion Radial Fast Spin Echo T2 Mapped Cardiac MRI in Acute MI Population for the Prediction of Short-term Major Adverse Cardiovascular Events.” Michael Teodori M.D., is the recipient of the Marjorie Hornbeck Award for his project, “Wireless Screening of Rheumatic Mitral Valve Disease in the Developing World.” Alexander Simon Ph.D., is the recipient of the Anthony and Mary Zoia Award for his project: “Role

DENNIS HOLDEN

of Connexins in Venous Valve Development.” Pediatric/Congenital Heart Disease Awards: Ornella Selmin Ph.D., received the Walter and Vinnie Hinz Award to study environmental sensitivity in the developing heart. Jess L. Thompson M.D., will use the William “Billy” Gieszl Award for his project, “Parental and Sibling Distress in Families Caring for Children with Congenital Heart Disease.” Heart Failure: An anonymous donor made possible two awards that support research focusing on heart failure. Raymond Runyan Ph.D., will study “Novel Mediators of Epithelial-Mesenchymal Transition in Cardiac Fibrosis.” Qin Chen Ph.D., will study “Nrf2 as a Cardiac Protective Gene.” Sudden Cardiac Arrest Research Grants: Paul Krieg Ph.D., is the recipient of the Steven

NEWS TO YOU!

M. Gootter Foundation Award, which will support his project “Cap2 Function during Cardiac Sarcomere Development.” Heart Disease in Women Research Grants: Gifts from the Tucson Community will support the research of Betsy Dokken N.P., Ph.D., who is studying “Coronary Microvascular Dysfunction in Diabetic Women of Color: Treatment with Glucagon-like Peptide-1.” The following researchers received awards that will support their projects for multiple years: John Kanady, a pre-doctoral candidate in physiological sciences, will receive support for two years from the Finley and Florence Brown Endowed Research Award. John Konhilas Ph.D., received the Edward and Virginia Madden Award, which is renewable for two years to support his project: “Impact of Pro-biotic Administration on

an Acute Coronary Event.” ELECTIONS Dennis Holden, a member of the Pima Community College Foundation Board of Directors since 2004, has been elected chairman of the board of directors for 2012-2013. Holden is the director of customer relations/ district operations for the Southern Arizona Division of Southwest Gas Corporation. Other officers include Greg Good, Good Law Firm PC as chairman-elect; Gloria Alvillar, human resources training consultant, vice chairwoman; Robert Ramirez, Vantage West Credit Union, secretary; Deborah Hutchinson, Clifton Larsen Allen LLP, treasurer; and Norman E Rebenstorf Jr., immediate past chairman. Cheryl House, certified fundraising executive, is executive director.

Business news delivered to you from Inside Tucson Business. Go to http://bit.ly/37USS7 to sign up.

BEST PART — IT’S FREE!

18 JULY 27, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Four financial tips for newly single women Within a marriage, a man’s and a woman’s financial circumstances are generally pretty much equal. But if a divorce occurs, the woman’s situation tends to be somewhat more challenging than that of her ex-spouse. That’s why, during this major life transition, you may want to meet with a professional financial advisor to go over spending needs and cash flow, so you know what you absolutely need today — and how you can plan for tomorrow. Before we get into some possible steps you can take, let’s look at some of the reasons women may fare worse than men, financially speaking, following a divorce: • Lower income — The average woman’s family income drops by 37 percent after divorce, according to the U.S. Census Bureau. And in many cases, divorce exacerbates a situation in which women were already trailing men in earnings. In fact, women still only earn 77 cents for each dollar earned by men, according to the U.S. Bureau of Labor Statistics. • Smaller retirement accounts — The average balance in womens’ defined contribution plans, such as 401(k) plans, is only 60 percent of mens’ average balances, according to the financial services research organization LIMRA (formerly Life Insurance and Market Research Association). Of course, “averages” are just that — averages. But whether you recognize yourself in the above numbers or not, consider these suggestions: • Create an emergency fund. Try to put six months’ to a year’s worth of living expenses in a liquid account. Once you’ve established this emergency fund, you won’t have to dip into long-term investments to pay for unexpected costs, such as an expensive car repair, a new furnace or a large medical bill. • Contribute as much as you can afford to retirement accounts. Even if you will eventually receive some of your ex-spouse’s retirement funds, you need to take full

advantage of your own savings opportunities because it’s pretty hard to save “too much” for retirement. If money is tight, it won’t always be easy, but contribute as much as you can to your TIM BEITHON 401(k) or similar employer-sponsored retirement plan. At a minimum, put in enough to earn the employer’s match, if one is offered. • Rebalance your investment portfolio. If you are now investing for yourself, you’ll want to take a close look at your asset mix to make sure it is appropriate for your situation. For example, your risk tolerance may be quite different than that of your ex-spouse’s, so if you now have total control over an investment portfolio, you need to make sure it reflects your needs and preferences. Consequently, you may need to “rebalance” your holdings. • Above all, get some help. As mentioned above, now is a good time to meet with a financial advisor. And if you don’t have much experience in managing your finances, you may even find it helpful to work with a trust company, which can collaborate with your financial provider to manage your assets and can also provide a variety of other functions, including bill payment and recordkeeping. A trust company’s services can prove especially valuable to you and your family should you ever become incapacitated. Unfortunately, a divorce may leave you feeling “at sea” in many areas of your life. But by following these suggestions, you can at least help keep your financial ship in calmer waters.

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

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

Company Name

Symbol

Jul. 25

Jul. 18 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 12.67 40.77

0.04 0.01 12.96 41.14

0.00 0.00 -0.29 -0.37

0.03 0.01 8.35 32.96

0.52 0.10 15.94 42.10

8.02 0.51 1.74 7.07 56.50 5.42 84.04 17.34 56.79 3.71 15.10 25.79 31.36 25.35 22.73 14.47 93.75 40.34 44.54 9.47 62.93 50.94 17.98 31.43 25.00 51.07 56.80 191.08 31.28 56.52 5.24 35.17 31.39 9.31 47.86 21.25 1.15 29.04 25.60 40.30 56.60 34.54 35.34 33.00 44.57 63.91 22.00 10.02 55.08 42.62 15.00 37.85 48.80 6.81 8.47 44.12 26.05 60.36 16.05 26.63 38.55 20.41 117.39 28.03 11.15 33.29 72.08 34.65 33.16 8.92 17.88

8.36 0.52 1.81 7.76 57.26 6.11 85.29 18.95 58.86 3.88 16.02 27.34 32.34 27.70 23.90 15.06 96.09 41.06 48.42 10.59 62.96 53.17 18.64 33.22 27.14 50.98 58.10 188.19 32.13 59.56 5.59 35.14 32.30 9.92 49.18 22.06 1.33 30.73 25.71 41.09 58.26 34.80 37.03 35.86 46.40 65.06 19.45 10.90 56.80 43.60 16.62 38.68 54.73 8.14 9.53 45.90 26.79 61.47 16.73 27.66 38.92 23.19 118.90 30.87 13.80 33.24 73.08 31.10 34.00 9.54 19.50

-0.34 -0.01 -0.07 -0.69 -0.76 -0.69 -1.25 -1.61 -2.07 -0.17 -0.92 -1.55 -0.98 -2.35 -1.17 -0.59 -2.34 -0.72 -3.88 -1.12 -0.03 -2.23 -0.66 -1.79 -2.14 0.09 -1.30 2.89 -0.85 -3.04 -0.35 0.03 -0.91 -0.61 -1.32 -0.81 -0.18 -1.69 -0.11 -0.79 -1.66 -0.26 -1.69 -2.86 -1.83 -1.15 2.55 -0.88 -1.72 -0.98 -1.62 -0.83 -5.93 -1.33 -1.06 -1.78 -0.74 -1.11 -0.68 -1.03 -0.37 -2.78 -1.51 -2.84 -2.65 0.05 -1.00 3.55 -0.84 -0.62 -1.62

7.97 0.20 1.48 4.92 50.95 5.30 65.35 17.26 43.77 3.30 12.30 21.40 19.19 14.61 22.19 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 20.98 0.49 12.14 18.07 32.90 38.64 22.66 25.49 13.68 33.20 49.20 19.06 3.29 38.35 36.50 14.73 30.98 28.89 6.25 7.15 32.12 20.96 45.28 14.04 24.34 27.62 15.51 77.73 26.43 3.96 20.10 48.31 28.53 22.58 4.44 13.18

15.41 4.40 5.16 10.10 65.21 10.57 85.35 29.50 59.59 5.99 23.35 39.42 32.78 28.79 36.56 15.20 96.43 41.84 48.69 12.25 72.46 67.20 19.35 56.32 30.49 53.28 62.00 210.69 34.77 62.33 5.72 46.49 36.67 13.12 56.66 25.20 1.81 31.90 32.29 41.80 62.83 42.17 40.45 36.60 48.31 65.78 43.18 11.48 56.92 46.40 23.16 39.44 85.90 14.32 10.17 46.08 32.79 62.18 20.83 34.24 39.49 25.84 123.56 58.29 14.51 33.99 73.46 39.79 34.59 9.60 22.82

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 27, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Keep housing improvement in perspective By Roger Yohem Inside Tucson Business It was a harsh message when Wells Fargo national economist Mark Vitner said it to a Tucson audience in February and he re-emphasized the point in his national mid-year update this month: keep the housing market’s improvements in perspective. Despite improving conditions, this “is not the start of the next great housing boom.” As the keynote speaker before the Pima County Real Estate Research Council in February, he warned that full recovery from the Great Recession may take 10 years. “Even with recent gains, new home sales and construction remain shadows of their former selves. Residential construction currently accounts for just 2.3 percent of GDP, down from 6.3 percent at the peak and 4.5 percent for a more typical period,” Vitner said this month in his mid-year report. While the economy slowly corrects, rentals have become hot for several reasons. New household formation has slowed as young people choose to rent due to job uncertainty, and investors are buying foreclosures to convert into rentals. As a result, there is a “mini-surge” in apartment construction at the same time the traditional home market is gradually improving. Vitner, who is often quoted in the Wall Street Journal, said this month — as he did in February — that job creation will drive the economic recovery.

One developer alone, Scottsdale-based MC Companies, will add 468 units to Tucson’s “outdated, tired” apartment inventory this year. The Place at Canyon Ridge, 2656

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

TUCSON REAL ESTATE

7/16/2012

7/9/2012

$151,000 4,083 372 390 241

$145,000 4,048 340 390 188

Source: Long Realty Research Center

Over-sold in 85756 For a fourth consecutive month, more homes sold in the southside 85756 zip code than were officially listed as for sale. The area around Tucson International Airport between Interstates 10 and 19 has been popular due to a consistent supply of foreclosures and other low-priced properties. More houses sold in the zip code than “active” listings due to a timing quirk, according to the Tucson Association of Realtors Multiple Listing Service. For example, a listing may expire after the home enters escrow. With 37 official listings, four more homes were sold in the zip code in June. Extra sales were even higher in zip code 85706 where 44 homes with 34 active listings. The area also is near the airport around Drexel Road and Alvernon Way. In June, the most listings were in zip code of 85739 at the northern end of Pima County where 223 homes were for sale. The area is along North Oracle Road from Catalina State Park north to the junction of State Routes 77 and 79. The next two highest areas for active listings were the central Catalina Foothills at 198 and Green Valley at 197.

Sales and leases Roger Yohem

468 new apartments

wood, 550 N. Harrison Road; and The Place at Tierra Rica, 3201 W. Ina Road. The company’s interests include 10,000 apartments in Arizona, Nevada, Oklahoma and Texas.

The Place at Creekside, 9971 E. Speedway, will add 352 apartments to Tucson’s inventory.

W. Broadway, will feature 116 units and The Place at Creekside, 9971 E. Speedway, will have 208 units in its first phase opening. MC Companies is a partnership between industry experts Ross McCallister, who lives in Tucson, and Ken McElroy of Scottsdale. Founded in 1985, the firm has seven multifamily properties in the Tucson region. Since less than 2,000 units have been added in the last 10 years, “Tucson’s demand for quality, affordable apartment community homes has exceeded the cur-

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

Current

Last Week

7/24/2012

One 12 Month 12 Month Year Ago High Low

3.50% 3.75%APR 3.75% 4.00%APR 4.95% 3.00% 3.125%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 Peoples Mortgage Company, P.O. box 43712 Tucson, AZ 85733. (520) 324-0000. MB #0905432. Rates are subject to change without notice based upon market conditions.

3.50% 3.00%

rent inventory for some time,” said McCallister. “We believe the Tucson economy is strong and there is a high demand for quality rental product. The Place at Canyon Ridge is the first of three projects we are building to help meet that demand.” The 9-acre Canyon Ridge complex cost $8.12 million to develop. The 11½-acre Creekside project was a $13.27 million investment. Both feature several floor plans, clubhouse, pool, spa, fitness center and upgraded amenities. At 144 units, Creekside’s second phase will open later this year. For both developments, Tucson’s Acorn Associates, 4400 E. Broadway, was the architect and MCCW, Scottsdale, was the general contractor. McCallister, with 30 years of development and finance experience, was president of the McCallister Co. before MC Companies. He is a licensed general contractor and real estate broker. McElroy oversees the firm’s asset portfolio and daily operations. Locally, MC Companies also own Puesta del Sol, 2299 N. Silverbell Road; Village at the Foothills, 2600 W. Ina Road; The Place at Edge-

• Tuesday Morning leased 10,000 square feet at 6884 E. Sunrise Drive, Suite 150, in Ventana Village from Westwood Financial Corporation, represented by Craig Finfrock, Commercial Retail Advisors. The tenant was represented by Jon Radus, Studley Inc. • Affordable Workstations leased 7,685 square feet at 610 N. Ninth Ave. from Rich Rodgers Central Inc., represented by Brandon Rodgers, Picor Commercial Real Estate Services. • HiTemp Metals leased 7,383 square feet at 4650 S. Coach Drive, Suite 100, from Butterfield Tech Center II, represented by Jon O’Shea and Rob Fischrup, Vast Commercial Real Estate. Gary Best, Keller Williams Commercial, represented the tenant. • Tucson Gymnastics Center leased a 5,700 square-foot building at 4631 S. Station Master Drive from Dunlop Oil Inc., represented by Dave Gallaher, Tucson Industrial Realty. The tenant was represented by Ron Zimmerman, Grubb and Ellis. • Service Solutions leased 3,600 square feet at 1121 W. Grant Road, Suites 410-412, from Sloat Family Partnership, represented by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services.

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

20 JULY 27, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Put Tucson cuisine on the map One of the challenges of my job can be coming up with an idea for this column every week. I get a little nervous if I don’t have at least one idea floating around my head by Monday. I read. I watch TV. You never know where there might something worth pursuing. So there I was Monday night watching another Food Network marathon of Guy Fieri’s “Diners, Drive-ins and Dives” when my mind DAVID HATFIELD wandered thinking of the places in Tucson that had been featured on the show. I thought. And I thought some more. Surely they must have visited at least a few Tucson places on Triple D, as Fieri likes to call it. It’s not like the show has a very high bar. And even if it had, Tucson isn’t lacking for some interesting twists that could be up to it. We’re not overrun with chains so there’s been room for individual ideas to try to shine. I finally gave up and found a website called Flavortownusa. com that lists the locations the show has visited over the six years it has been on the air. Out of 140 episodes, not once has a Tucson diner, drive-in or dive ever been featured. The show has been to 13 places in Arizona — twice to spots in Flagstaff and all the other visits were in the Phoenix area, including a Chandler gelato shop that was out of business three months after it was featured in August 2009. I wondered if Tucson was getting short shrift from Triple D? Were other cities being bypassed, too? With an estimated 2011 population of 525,796, Tucson is the nation’s 33rd largest city. It turns out Triple D’s cameras haven’t been to three cities larger than Tucson — Columbus, Ohio; El Paso; and Louisville, Ky. As metro areas go, Tucson is the 52nd biggest, according to the Census Bureau. Flavortownusa.com, shows seven others that are bigger have also been shunned. But look what they are. Riverside-San Bernardino-Ontario, Calif., where more than 4.2 million people live, isn’t much more than a poor relation suburb of Los Angeles. I’m guessing Orlando, Fla., missed out due to the fact that most of the 2.1 million people living there arrived in the boom since the Walt Disney Company showed up and they all support the themerestaurant chains the area has spawned. The other metros that haven’t had places featured on the show are Columbus; Louisville; Raleigh, N.C.; Birmingham, Ala.; and Rochester, N.Y. That’s not exactly a list of places known for their food. But Tucson can be. As Patrick McNamara reported in Inside Tucson Business last month, the Tucson Metropolitan Tucson Convention and Visitors Bureau is pursuing a campaign to proclaim this region as home to the “best 23 square miles of Mexican food in the U.S.” Bring on those who think they can top us. Let’s make a name for ourselves. Tucson needs to get noticed.

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

EDITORIAL

Get on board to fix air service There will be some who see this month’s decision by Frontier Airlines against resuming its flights at Tucson International Airport as another failure of and for the Tucson region. For starters the decision has more to do with the fragile condition of Frontier’s own finances. Beyond that, what’s more important is the lesson Tucson takes from the decision. In an airline industry that seemingly is in a constant state of financial struggle, Frontier Airlines is desperately trying to reinvent itself to become more attractive to a potential buyer. It happens in other industries. The goal is to reduce costs while cranking up productivity to levels that can’t always be sustained. We can’t help but think Frontier’s demise in Tucson was at least partly its own doing. Founded in 1994, the latest incarnation of Frontier has built a loyal customer base in its home town Denver, but has failed several times to expand beyond that. A 2009 merger with Midwest Airlines made it a major player in both Milwaukee, Wis., and Kansas City, Mo., but that is no longer the case. Earlier attempts to expand service in California and develop other “focus cities” also failed. Each time Frontier retreated to its customer base in Denver. For Tucsonans that became a one-way flight. In 2009 and 2010 — when the Colorado Rockies came to Hi Corbett Field for spring training — Frontier was competitive and in some months carried the most passengers between Tucson and Denver. But since then, Southwest Airlines has started flying the route and United has long been Denver’s dominant airline with its major hub there. With no loyalty to Frontier, Southern Arizonans chose Southwest and United for their flights to and through Denver.

It’s too bad. Frontier was a good airline. Frontier has faced and will face situations similar to Tucson in other cities. And it will cut service to more cities. For Frontier, Tucson may have been the canary in the coal mine. More importantly is what Tucsonans take away from the situation. Airline service at Tucson International Airport isn’t what most of us would like but it’s up to us to change that. The Tucson Metro Chamber is leading an air service task force in which there has been talk of businesses stepping up to develop financial incentives and deliver passengers to help sustain new airline service. Airlines are responding when communities put money where their mouths are. As an example, just this week Frontier announced it will start flights three days a week between South Bend, Ind., and Denver. To get it, South Bend is using a combination of $750,000 in grant money from the U.S. Department of Transportation’s Small Community Air Service Development plus $475,000 from the local community to establish the flights. In light of Frontier’s circumstances, South Bend’s investment may not be so savvy long-term but it speaks to the realities of what needs to be done. The Tucson Metro Chamber next month is planning to unveil the results of a business travel demand survey that was done in June. More than 500 companies participated. The unveiling will take place as part of a 90-minute presentation starting at 3 p.m. Aug. 8 at the Doubletree at Reid Park Hotel, 445 S. Alvernon Way. It will be the first step to improving Tucson’s air service. Send an email to Arlene Chiovetti at achiovet@tucsonchamber.org and make sure your business is represented. Businesses need to get on board.

InsideTucsonBusiness.com

JULY 27, 2012

OPINION WAKE UP, TUCSON

We think the next president of the United States will be... We’re going on a limb to call the 2012 Presidential election. Given the avalanche of bad economic news dealt to the Obama administration almost daily, come January the United States will be swearing in a new president and making history of the wrong president for the wrong time. In four years, the U.S. has gone from hope and change to desperation with full-on attacks on the business sector. The economy that was dealt to President Obama was already in free-fall but with Obamacare and Dodds-Frank Wall Street reform legislation, the federal government injected just enough uncertainty to bring it to a grinding halt. Let’s look at the headwinds facing the Obama campaign:

Jumping off the train Most of the groups that bought into the “Hope and Change” message four years ago are still hoping for change but have lost interest in this campaign. The youth vote in 2008, which was touted as the biggest since John F. Kennedy’s election in 1960, is evaporating. Students are leaving college owing big money on loans but with no jobs. The Jewish vote, which has historically gone Democratic, is none too thrilled with Obama’s stance on Israel.

Roman Catholic organizations have filed lawsuits over actions regarding reproductive rights. The biggest voting block to switch in November will be the JOE HIGGINS independent voter, who usually breaks toward the challenger. In eight key state primaries Obama didn’t fare as well as Bill Clinton did in his 1996 re-election bid. The total vote in Massachusetts, New Hampshire, CHRIS DeSIMONE Oklahoma, Alabama, Georgia, Ohio, Tennessee and Vermont for Clinton was nearly 1.7 million to Obama’s 1.2 million this year. In West Virginia, Keith Judd, who is serving a 17½ year federal prison sentence for extortion, took 41 percent of the vote — 72,000 to Obama’s 106,000.

It’s the economy, stupid Every voter block and every demographic in every state is worried about the stagnant economy. The president had his shot and it has been a spectacular failure. More than $3 trillion is sitting on the balance sheets of private firms in the U,S. Businesses aren’t investing because they aren’t going to invest capital in the current regulatory and taxing minefield.

Money Obama outspent John McCain 3-to-1 in 2008. That won’t happen this year. In June, the Romney campaign, the major super political action committee (Super PAC) supporting it and the Republican National Committee raised $92.5 million to the $69.1 million raised by Obama, the major Super PAC supporting him and the Democratic National Committee. According to figures on file with the Federal Election Commission, the Romney campaign has $191.2 million cash on hand to the Obama campaign’s $146.8 million. Obama acknowledged the situation when, according to the Daily Beast, he said, “(I)f things continue as they have so far, I’ll be the first sitting president in modern history to be outspent.”

State-by-state

Currently, Democratic and Democraticleaning states give Obama 217 electoral votes while Republican and Republican-leaning states give Romney 206 votes. Among the “up for grabs” states, Michigan, Flordia, Virginia, Iowa, Ohio and Colorado — show a shift away from Obama to margins that now are down to 3 percentage points or less. Add the electoral vote totals in those six states and you’re looking at 297 for Romney to 216 for Obama. That still leaves Wisconsin, New Hampshire, Nevada and New Mexico up for grabs. So get ready for a new president and a bit more pain. If Ronald Reagan’s first two years are an indication, some major steps have to be taken to right the economic ship that over the past four yeas has seen central bankers gone wild, a 2,300-page Obamacare bill that no one has yet to fully comprehend, student loan bubbles, bank regulations that are choking main street and millions of jobs vanished. Oh, and you still have to flip the current Democratic-controlled stagnant U.S. Senate that has failed to produce a budget in three years. But that’s another column for another day.

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

Don’t blame the RTA for Broadway widening project By Garry Duffy for Inside Tucson Business Critics of the project to widen Broadway from Euclid Avenue to Country Club Road are wrongly aiming their ire at the Regional Transportation Authority (RTA). The project was initially planned by the City of Tucson in the late 1980s. It was submitted for inclusion – by the city – into the massive regional transportation plan in 2005 that was approved by voters countywide in 2006. “Broadway is being planned, designed and built by the city of Tucson through its department of transportation,” RTA Board Chair Satish Hiremath said recently. “They are responsible for delivering the project that meets the functional goal as described on the ballot,” added Hiremath, who is also mayor of Oro Valley. The RTA typically does not design or build roadway projects. It is the financial manager of the hundreds of multi-modal projects - roadway, public transit, public safety and environmental and economic vitality elements - contained in the $2.1 billion regional transportation plan. The $71.3 million Broadway project is to

be done in phases, with actual construction to begin in 2016. Planning by the city transportation department for a final design is to take about 18 months. The RTA is to fund about $42 million of the project, with Pima County bonds adding another $25 million. The city is to contribute only about $3 million. The Broadway plan submitted by the city and approved by voters calls for widening that segment of Broadway to six travel lanes in each direction, adding two dedicated bus lanes in each direction, bicycle lanes in both directions, raised and landscaped medians, pedestrian-friendly sidewalks, and continuous street-lighting. Critics claim the proposed widening as contained in the 2006 regional transportation plan was based on a flawed late 1980s Broadway Corridor Transportation Study by the city that anticipated vehicular flows higher in volume than will likely be realized in the near future. They also say the project footprint will wipe out many existing businesses and homes along the route although more than 25 percent of the affected buildings are already the property of the city.

The Broadway widening is part of a larger scale plan to reduce traffic bottlenecking in the downtown area, and to divert traffic bound for Interstate 10 from going through the downtown area. Other projects include the widening of 22nd Street, and the extension of the Barazza/Aviation corridor — also called the Downtown Links project — from its current termination at Broadway to I-10 by way of Sixth Street Street and St. Mary’s Road. Before the plan went to voters on May 16, 2006, the RTA board approved a resolution assuring voters that projects in the 20-year plan would be carried out as promised. The core of the resolution states that “The voters, in approving the expenditure plan, are relying on the planned improvements actually being carried out.” The RTA has never been asked to downsize an regional transportation plan project approved by voters. The RTA did allow the Town of Marana to modify a project to widen Camino de Manana to four lanes instead of two lanes as contained in the 2006 voter-approved regional transportation plan. Marana agreed

to pay the increased costs of the change. The difference with that change from what’s being suggested for Broadway is that Marana’s requested change did not reduce the functionality of the project, but, rather, increased it, according to Jim DeGrood, RTA transportation services director. The Tucson Transportation Department has appointed a 13-member Citizens Task Force to take community input on the project design as it progresses. The RTA Administrative Code recognizes the value of citizen input through the planning process, and acknowledges the role of the Citizens Task Force on the Broadway project, as well as the role of the Citizens Accountability for Regional Transportation (CART) committee in the oversight of the RTA Plan’s implementation. The RTA’s MainStreet Business Program will provide assistance and information to business owners during the process.

Garry Duffy is a consultant to the Reginal Transportation Authority. During his career in journalism he covered transportation in Pima County for the Tucson Citizen newspaper for eight years.

22 JULY 27, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Pima County is a regional leader in economic development It’s very easy to have an opinion, since it’s not necessary to trouble yourself with the facts. In their July 13, 2012, opinion, Chris DeSimone and Joe Higgins charge that the City of Tucson and Pima County have created a climate of fear that discourages economic development. In response, here are some facts. Since 2006, Pima County has awarded 180 projects; spending $920 million and creating or sustaining 12,665 jobs, primarily in the construction and building-related industries. Higgins and DeSimone acknowledge “positive changes have brought in the new leadership of ... Brent DeRaad as president and CEO at Visit Tucson – you may still know it as the Metropolitan Tucson Convention and Visitors Bureau.” They fail to mention, however, that Pima County appointed the stakeholders audit committee that reviewed the performance and operations of the MTCVB. The audit committee, comprised of tourism industry executives, developed and will monitor implementation of 24 recommendations to enhance MTCVB performance. The county’s audit process, along with revitalized MTCVB leadership, will help

C.H. HUCKELBERRY

increase tourism revenue for our region. Higgins and DeSimone also omitted the fact that Pima County’s funding support of the MTCVB has increased, while other jurisdiction’s con-

tributions are declining. The opinion also accuses Pima County of having “pistol whipped engines that could drive the economy” and cites small business owners, Raytheon, hotels and biotech companies. The county’s “pistol whipping” activities include being the only area jurisdiction to commit resources – nearly $6 million – to purchase land for the buffer necessary for Raytheon protection and expansion. This county land is ultimately slated for the creation of an aerospace/defense business and research park, which will house industry-related businesses and include incubation of new small businesses. Higgins and DeSimone also assert “We are a region run by government officials

who fight to keep mines out.” Not true. Pima County approved an agreement to reopen the Oracle Ridge Mine, which could create up to 240 new jobs. Oracle Ridge is an underground mine that will operate with minimal environmental impacts. The county also supported expansion of Freeport-McMoRan Sierrita and the nearby Caterpillar Proving Ground. The county has also been busy with extensive economic development activities, including: • Multi-year planning for an aerospace/ defense corridor bond program to provide transportation infrastructure and other necessary improvements to protect existing, higher-wage jobs and encourage expansion and new business development. • Providing tax incentives and supporting a Foreign Trade Zone designation for the expansion of Roche/Ventana Medical Systems, which is ultimately expected to add 500 higher wage, clean industry jobs in Pima County. • Foregoing the 2012 scheduled increase in the roadway development impact fee. • Lowering sewer connection fees by 30 percent. • Developing and constructing 40 miles of bicycle, jogging and walking

paths known as “The Loop,” contributing to Tucson’s recent Number 1 ranking of top bicycle towns by Outside magazine. The Loop brings tourism revenue to our region and contributes to the overall health and wellbeing of our community. • Advocating at the local and federal levels in support of the missions of Davis-Monthan Air Force Base and the Arizona Air National Guard; and in partnership with local, state and federal organizations, opened the Kino Veterans Workforce Center, dedicated exclusively to job placement for veterans. • Working closely with The University of Arizona on a number of current and developing partnerships that include funding for physician education and medical service delivery, an increased University presence in downtown Tucson, and opportunities for increased geotourism, including a potential visitors center on Tumamoc Hill. It isn’t hard to see that Pima County is a regional leader in economic development. You just have to open your eyes and look.

C.H. “Chuck” Huckelberry is Pima County Administrator.

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