Inside Tucson Business 08/03/12 by Territorial Newspapers

FROM VACANT TO VIBRANT Old Mervyn’s parcel making a dynamic retail comeback PAGE 19

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • AUGUST 3, 2012 • VOL. 21, NO. 62 • $1

Changing with the times Making the switch to electronic medical records Page 3

Fast track for C-Path Quicker process means saving more lives Page 11

Getting its due

Patrick McNamara

City helps Rio Nuevo reclaim sales taxes Page 17

Group says city employees due millions in pension payouts Inside Tucson Business A taxpayer watchdog group in Illinois has released a study saying Tucson government retirees could receive millions of dollars in lifetime pension payouts. Taxpayers United of America, a libertarian leaning but politically non-affiliated advocacy group, put together an analysis of the city’s highest-paid pensioners and their estimated lifetime retirement payouts. According to the group’s analysis, the retirees’ annual pensions range from $113,979 to $67,355. All told, the retirees receive $3.9 million per year

in pension payments. “These people are being paid an astronomical amount of money for 30 to 40 years to do absolutely nothing,” said Jim Tobin, founder and president of Taxpayers United of America. Tobin said the group advocates having all new government hires on 401(k) and Social Security instead of the traditional publically funded pension plans that many government employees are on. The group also advocates for government employees to pay for 50 percent of their health premiums. “They defend pensions by saying

they deserve it, but it doesn’t happen in the private sector anymore,” Tobin said. According to the group’s calculations, many of the city retirees will earn as much as $3.4 million in pension payments. They base the figure on a retirement age of 55 and assume the pension payments will extend for 30 years. City employees are only eligible for early retirement at age 55 if they have at least 20 years service. The city’s Tucson Supplemental Retirement System Pension Fund has a budget for the current fiscal year of $68.1 million.

According to a 2011 guide to the pension fund, two-thirds of the preinvestment proceeds funding comes from city contributions. Employee contributions make up the remainder. City employees are required to contribute at five percent of their gross wages. Tobin called pension systems “immoral” and said that they were growing increasingly unsustainable. “That’s the worst part about it,” he said. “We’re forced to pay their million-dollar pensions.” Copies of the reports are online at www.taxpayersunitedofamerica.org.

2 AUGUST 3, 2012

SBA Lending Getting the right business financing is key in today’s economy. A Wells Fargo SBA loan is a smart choice, because the low down payment and low monthly payments help you maintain capital and cash flow. If you’re looking to purchase real estate for your business, acquire another business, expand to an additional location, or simply buy equipment or inventory, turn to Wells Fargo SBA Lending to help you do it. You can be confident in our experience as an SBA lender. In 2011, we approved over a billion dollars in SBA loans to businesses across America — more than any other bank in SBA lending history.2 We’ll use that experience to guide you through the process and make sure you get the financing you need. Apply for a loan or learn more today. Stop by a Wells Fargo location to talk with a banker, or call 1-800-545-0670 (Monday – Friday, 7 a.m. – 7 p.m. Pacific Time). You can also visit wellsfargo.com/sba.

Wells Fargo is the #1 SBA 7(a) lender by dollars according to the U.S. Small Business Administration as of September 30, 2011. Based on data from U.S. Small Business Administration, for federal ﬁscal year 2011. All credit decisions subject to approval. © 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (709199_04421)

INSIDE TUCSON BUSINESS

Proud to be America’s #1 SBA lender for the 3rd straight year 1

InsideTucsonBusiness.com

AUGUST 3, 2012

NEWS

Sunquest Info Systems sold for $1.4 billion

Former skeptic, doctor now embraces new approach to health care filing

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

Optum

By Christy Krueger Inside Tucson Business The biggest skeptics can sometimes become the greatest advocates when new technology is concerned. And doctors are no different. When Dr. Jeffrey Selwyn was urged to convert his patient files from paper to electronic, he vehemently opposed the idea. “I felt my charts were legible and well organized,” said Selwyn, an internist with New Pueblo Medicine. “Doctors do not welcome change because we’re busy. About seven or eight years ago we started a concerted effort to use electronic health records. We picked NextGen, a system that’s pretty well known and it’s good for outpatient providers.” Eventually, everyone at New Pueblo was on the new system except Selwyn. “Finally, it was my turn. All the staff was trained and we had IT people around us. So I learned the system and converted patient records. We had a lot of support to help,” he said. Selwyn temporarily cut back on his patient load during the transition phase, and after a couple months he began to feel comfortable using the technology that is becoming standard in his profession. He also started to realize its value. “I was amazed at what it did to enhance patient care. It’s easy to find charts, the continuity of care was boosted,” he said. Using electronic medical records (EMR) also allows sharing of files with other providers, Selwyn pointed out, which reduces redundancy, saving time and money. This area, however, needs some refinement. Currently, the various EMR systems can’t interact with one other. But Selwyn is helping to make that happen, as well. “In Arizona we’re developing HIE — health information exchange — that will allow us to communicate via an interface

Dr. Jeffrey Selwyn goes over records with patient Bill Bergen.

with the different EMR systems. In several months we’ll have it up and running,” Selwyn said. The EMR trend is not just good for patients and convenient for providers; it’s mandated in the federal government’s 2010 Affordable Care Act. Conversion is a long process, Selwyn explained, with various levels of compliance. Tucson Medical Center and New Pueblo are among those who have achieved the higher levels. Four years ago Selwyn became involved with a steering committee made up of Tucson area doctors, chief executive officers and administrators who worked to develop Arizona Connected Care, now a government-recognized Accountable Care Organization. Centers for Medicare and Medicaid Services defines an ACO as a group of health care providers who agree to be accountable for giving quality care to their Medicare patients while lowering costs. In January Selwyn became chairman of the board of Arizona Connected Care, which is comprised of Tucson Medical

Center, area community health centers and more than 150 physicians. On April 1, the Centers for Medicare and Medicaid Services, an agency of the U.S. Department of Health and Human Services, selected Arizona Connected Care to be among 27 ACOs selected to participate in its Shared Savings Program. The goal of the three-year pilot program is to increase the quality of care while reducing health care costs. As this is accomplished, Selwyn said, those savings will be shared equally between Centers for Medicare and Medicaid Services and the ACO. Selwyn recalls a similar system being proposed by medical organizations in the 1970s, but it was not accepted in Washington, D.C. He thinks it’s ironic the government is now coming to the medical profession saying, “Maybe you could do a better job,” as he puts it. He believes the ACO model will be a boon to health care in the U.S. “It’s a team

see DOCTOR page 6

PUBLISHER THOMAS P. LEE tlee@azbiz.com

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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 Sunquest Information Systems Inc., a maker of diagnostic and laboratory software for healthcare industry, has been acquired by Roper Industries Inc., a diversified industrial technology company headquartered in Sarasota, Fla. The total deal, announced Monday (July 30), is valued at $1.42 billion, including $25 million in cash tax benefits. The deal is expected to close within 30 days, pending governmental antitrust approval. Roper is a publicly traded company (NYSE: ROP). Roper is acquiring Sunquest from private equity firms Vista Equity Partners and Huntsman Gay Global Capital. Vista Equity had acquired the firm for $381.5 million in 2007 from London-based Misys Healthcare. After the acquisition, the private equity firm returned to using the name Sunquest, the name it had used when founded in Tucson in 1979 by Sidney Goldblatt, director of the clinical laboratory at Conemaugh Hospital, Johnstown, Pa.; Jim Peebles, who was with the Airborne Instrument Laboratory at Johns Hopkins University; and Robert Morrison, an interface technology engineer at what was Burr-Brown Corp. After going public in 1996, Misys acquired the company in 2001 for $404 million. Sunquest’s current headquarters are at 520 S. Williams Blvd., where it has about 300 employees. Its software is being used in more than 1,700 hospitals around the world.

Rosemont expects to spend $1.2 billion to open mine The parent company of Rosemont Copper has issued an updated feasibility study showing the total initial capital costs it will spend for construction and development of the mine in the Santa Rita Mountains will total $1.2 billion, a 32 percent increase over the cost estimate in the company’s previous feasibility study issued in 2009. The higher price reflects inflation but also includes design changes to meet the recommendations of the U.S. Forest Service. The changes include efforts to reduce the total impact of the mine, pollution control, habitat migration, resource conservation and public safety, according to Augusta Resource. Using various scenarios for future copper prices, the feasibility study anticipates a payback of the initial investment within about 2½ years. Annual copper production from the Rosemont Mine is expected to average 243 million pounds over its 21-year life.

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

6 7-8 9 9 11 14 15

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

17 18 19 20 20 23

4 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

NEWS

Two on city council raise issues over plan to extend Sabino Canyon Road

The Tucson Metro Chamber is undergoing a personnel restructuring that eliminates Bill Holmes’ position as chief operating officer and four other positions, two full time and two part time. Mike Varney, president and CEO of the chamber, announced the changes in a message to members Tuesday (July 31). He said the changes took effect this week and emphasized that all current chamber programs will continue. Bruce Dusenberry, chairman of the chamber’s board, said in the announcement that the changes came about after an assessment of the operation structure of the organization. “Like all companies, nonprofits need to watchful over their bottom lines,” he said. In an interview, Varney said, “The bottom line is that we want to be better and at the same time leaner and meaner.” The restructuring will cut costs but Varney said it will be coupled with a campaign to raise revenues through new memberships and other programs, which are projected to raise more than 1½ times the amount of money to be cut. He declined to talk specific budget numbers, saying he would have to go to his board before doing so. Despite the elimination of the chief operating officer position, the chamber is creating a new management position to oversee finance and operations. Varney said the chamber has already begun a process to fill that position. Meanwhile, the chamber has made an offer to Holmes to become vice president of special projects. “I hope he takes it,” Varney said. “Nobody has a better network of contacts in this region than Bill Holmes. Frankly, his talents were wasted being here in the office managing the operations.” Varney and Holmes were hired at the same time in April 2011 after the retirement of CEO Jack Camper. Varney had been CEO and president of the North Las Vegas Chamber of Commerce in Nevada for 11 years. Holmes, who had been in Tucson for 35 years, came from Wells Fargo, where he was vice president and community relations manager. Varney said the chamber is making strides. Membership revenue was up 16 percent for the fiscal year ended June 30 and the goal is to grow them even more this year, he said. The other positions that are being eliminated are government affairs coordinator, an administrative assistant and two parttime receptionists.

Patrick McNamara

Metro chamber restructures, COO Holmes’ position cut

Construction continues at the Sabino Canyon and Tanque Verde roads intersection where widening and drainage improvements were done in preparation for extending Sabino Canyon to Kolb Road.

By Patrick McNamara Inside Tucson Business City of Tucson leaders have raised questions about a plan to extend Sabino Canyon Road south across the Pantano Wash connecting to Kolb Road, one of the major projects of 2006 Regional Transportation Authority plan. City Councilmen Paul Cunningham and Steve Kozachik say they are concerned based on estimated costs and potential negative impacts the proposed roadway would have on nearby residents. “The project began at $9 million, it’s now over $21 million,” Kozachik said. The new roadway would be a four-lane divided roadway with a bridge crossing the Pantano Wash. RTA officials say the original cost estimates didn’t take into account that the roadway would traverse a section of decommissioned landfill, which has created the need for additional design and construction features. “That’s probably one of the most significant cost factors,” said Jim DeGrood, transportation services director for the RTA. During the initial planning of the project, before the RTA was put to a public vote, it was wrongly assumed the proposed roadway would not cross a section of landfill, DeGrood said. Now that it’s known the road will traverse the area, additional de-

sign functions have to be included to prevent settling beneath the road and to ensure adequate drainage. Additional costs also came into play with the nearly complete intersection improvements at Sabino Canyon and Tanque Verde roads. Originally it was thought the intersection would not need widening and drainage and other improvements that have since been done, DeGrood said. The city has been able to leverage nearly $12 million in federal transportation grants to bridge the funding gap. Cunningham said the new-found money should go to fixing potholes and other road repairs. “In other words, we can’t maintain the roads we’ve got but we’ll build new ones,” he said. DeGrood said it would be possible to use additional or leftover funds from the extension project to fix potholes, particularly along Kolb where the new road will connect. He also said many RTA projects have so far come in under budget, benefiting from the economic downturn. The Sabino Canyon Road extension is designed to alleviate congestion that now travels west to the Grant-Kolb intersection, one of the region’s most congested. Traffic analyses show volumes of leftturn traffic from west-bound Tanque Verde

to south-bound Kolb exceed 800 vehicles per hour at peak travel times. South-bound Sabino Canyon at Tanque Verde sees more than 1,200 vehicles per hour at peak time making right turns. The new roadway would be used by as many as 21,000 vehicles each day. Ramon Gaanderse, executive director of the Tucson Utility Contractors Association, said even with the early inaccurate cost estimates, the project should continue. “Certainly you want to use the taxpayers’ money wisely,” Gaanderse said, adding that creating delays to the project would only cost more. “The longer we wait the cost will just keep going up and up.” For Kozachik, the explanation that the federal government provided the additional funding doesn’t change that a large amount of public money will be spent on the project. “There is a perception that if it’s government money it’s free money,” he said. The money still comes from taxpayers, Kozachik said, and the government has an obligation to spend appropriately. Kozachik and Cunningham will review the project at a meeting at 6 p.m. today (Aug. 3) at East Side City Hall, 7575 E. Speedway.

Contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4959.

InsideTucsonBusiness.com

AUGUST 3, 2012

NEWS

Some details on how healthcare reform will affect you

Inside Tucson Business There’s no putting it off any longer. Now that the U.S. Supreme Court has upheld the federal government’s health-care reform law, more Americans and business leaders are facing up to finding out what’s in it, as former Speaker of the House Nancy Pelosi advised when she told an audience in 2010, Congress will have “to pass the bill so you can find out what’s in it, away from the fog of controversy.” As it stands, here’s an overview of how the the 2010 Patient Protection and Affordable Care Act is poised to affect families, individuals and business:

Expansion of insurance coverage The major goal is to expand access to health insurance by making more people eligible for Medicaid (those with incomes up to 1.33 times the poverty level), and by offering generous subsidies to help families pay for insurance. One estimate, published by the nonpartisan Congressional Budget Office, projects that by 2020 some 32 million Americans who would be uninsured without the law will have coverage. Those gains would include about 17 million people added to Medicaid, and 22 million who are expected to buy insurance on their own from private firms – on “exchanges” set up at the state level. (The gains would be offset somewhat by a projected decline in the number of people covered by employer-sponsored health plans.) But the Supreme Court held that states cannot be coerced into participating in the Medicaid expansion, which means the decision is being left up to states and end up reaching fewer than 17 million people. Gov. Jan Brewer has been meeting with health care officials and others before making a decision as to whether the state will create an insurance exchange and expand the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid program.

‘Individual mandate’ The mandate that individuals carry insurance or pay a fine was at the center of the Supreme Court’s legal review, which a 5-4 majority of the justices found to be constitutional under Congress’

power of taxation. In practice, most Americans already have health insurance, such as from their employer or from a government program such as AHCCCS. The mandate does affect the millions of people who don’t have insurance, with some important exceptions: Some people, such as Amish households, will be able to claim a religious exemption, while others won’t be affected because they are in prison or are undocumented immigrants. One large group of Americans will be exempt because of their income. People won’t be required to buy insurance if it will cost more than 8 percent of their earnings. Subsidies will help keep at least some families below this “unaffordable” level in the program, but the federal aid is phased out as household income rises. A family of four with $60,000 in income might be eligible for a federal subsidy under the act to buy insurance, and yet be exempt from the individual mandate. High-earning Americans will be subject to the mandate, because the insurance costs will amount to less than 8 percent of their income.

Fines for uninsured If you are subject to the mandate and don’t buy insurance, fines will be assessed through the tax code. By 2016, after two years of the mandate, the fines will be either $695 per person (up to $2,085 per family) or 2.5 percent of income, whichever is larger. (The fines are set at lower levels for the first two years. For example, in 2014 it’s $95 per person or 1 percent of income.)

Subsidies for buying insurance If you need to shop for yourself, there are two kinds of subsidies. One is premium credits to help households with incomes of four times the poverty level or less. The other main subsidy would reduce the amount of medical copayments owed by insured individuals or families. A “health reform subsidy calculator” from the Kaiser Family Foundation can help chart the likely impact. As already noted,

see REFORM page 6

This Week’s

Good News Improving life on D-M Back in March, Davis-Monthan Air Force Base was named the winner of the 2012 Commander in Chief’s Installation Excellence Award, which brought with it a $1 million prize to be used for quality of life improvements on the base. After pouring through a variety of submissions, then online voting and high-level evaluations the decision has been made that the major portion of the money will go to opening a permanent gate on the south side of the base. Upgrading Gate 29B, which is north of the intersection of Valencia and Wilmot roads, will shave about a half-hour off the commute times of 5,000 unique individuals annually who will come from the south, according to an announcement from Col. James Meger, acting 355th Fighter Wing commander. Additionally, it will help reduce congestion at gates on the north side of the base. The rest of the prize money will go to Davis-Monthan projects including a crossfunctional fitness room, an upgrade to the Airman’s Loft, interval training bikes, installation of a sidewalk in a base housing area, a flightline gym upgrade, upgrades to a tax assistance clinic upgrade, a special needs seminar, 355th Force Support Squadron barbeque grill and a dog park.

The Tucson

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

Battle of Wrightstown? Tucson Unified School District’s plans to sell its closed Wrightstown Elementary School, 8950 E. Wrightstown Road, is starting to get some pushback from nearby residents who are none too thrilled at a developer’s proposal to put 108 rental houses on the 9.2-acre site. A neighborhood across the street from the site, on the north side of Wrightstown Road, has expressed concern the new residents will overburden the two-lane roadway beyond its capacity. That has a neighborhood on the south side of Wrightstown worried that their residential streets would be used to relieve congestion. The whole deal with TUSD hinges on the city allowing a rezoning of the property that currently would allow just 11 homes on the site. Alta Vista Communities has proposed buying the site for $1.6 million and demolishing the school, except for one historic building, to make way for its development. Wrightstown was one of six elementary schools TUSD closed in 2010. The school board voted 3-2 to sell the property, provided the developer’s plans are approved.

6 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

NEWS DOCTOR continued from Page 3

PUBLIC NOTICES 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.

BANKRUPTCIES Chapter 7 - Liquidation Southern Mill Carpet & Tile Inc., c/o Robert Knight, 7941 S. Camino Loma Alta. Principal: Robert Lawrence Knight, president. Estimated assets: $50,000 or less. Estimated liabilities: More than $100,000 to $500,000. Largest creditor(s): Bank of America, Charlotte, N.C., $96,454.51. Case No. 12-16616 ﬁled July 25. Law ﬁrm: Pro se

FORECLOSURE NOTICES Reece Industries LLC 3407 E. Benson Highway 85706 Tax parcel: 140-05-01902 Original Principal: $250,000.00 Beneficiary: Bayview Loan Servicing, Coral Gables, Fla. Auction time and date: 11:30 a.m. Oct. 17, 2012 Trustee: Jason P. Sherman, Shapiro Van Ess and Sherman, 3300 N. Central Ave., Suite 2200, Phoenix Sierra Sol Custom Building & Development LLC 625 E. Vuelta Caminata Del Rio, Oro Valley 85737 Tax parcel: 224-28-2630 Original Principal: $1,997,000.00 Beneficiary: Santa Barbara Bank & Trust, formerly known as Pacific Capital Bank, Santa Barbara, Calif. Auction time and date: 11:30 a.m. Oct. 30, 2012 Trustee: Robert W. Saxton, SBS Trust Deed Network, 31194 La Baya Drive #106, Westlake Village, Calif. Euclid NT Partnership LLC 11425 N. Musket Road, Marana 85653 Tax parcel: 208-25-0260 Original Principal: $200,000.00 Beneficiary: Roxanna Rogers, Cortaro Auction time and date: 10 a.m. Oct. 24, 2012 Trustee: James M. Woodrow, 7440 N. Oracle Road, Building 5 Kaufman Catalina Village-DE LLC 7760, 7790, 7792, 7794, 7796, 7800, 7802, 7804, 7810, 7816, 7820, 7830, 7840, 7842, 7844, 7846, 7848, 7850, 7852, 7854, 7856 and 7858 E. Wrightstown Road, 85715 Tax parcel: 133-12-006M Original Principal: $6,920,000.00 Beneficiary: GSMS 2005-GG4 Wrightstown Road LLC, c/o LNR Partners LLC, Miami Beach, Fla. Auction time and date: 1:30 p.m. Oct. 23, 2012 Trustee: Craig K. Williams, Snell & Wilmer, One Arizona Center, 400 E. Van Buren St., Phoenix

LIENS Federal tax liens Bennett Pool Specialties and Matthew Thomas Bennett, 4050 E. Camino De La Bajada. Amount owed: $48,892.72. Pryde Business Systems LLC and Lyle S. Wood, PO Box 31888, 85751. Amount owed: $9,956.00. Law Ofﬁces Susan M. Schauf Ltd, 6221 N. Placita De Luis. Amount owed: $28,262.55. Huachuca Concrete Inc., 7777 E. Valencia Road. Amount owed: $568,847.03. Venture-N Inc., 1239 N. Sixth Ave. Amount owed: $26,052.48. All Seasons Desert Landscaping and OND Contractor Services LLC, 2977 E. Manzanita Ave. Amount owed: $24,955.11.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Pepe’s Taco Shop, Whammijump and Jose L. Mendivil, 2733 N. Walnut Ave. Amount owed: $3,522.96. International Restaurant II LLC, 2720 N. Oracle Road. Amount owed: $20,969.13. Women’s Empowerment Partnership Inc., 7300 Scout Ave. #E, Bell Gardens, Calif. Amount owed: $183,258.14. Samurai Teppan & Sushi and Murai LLC, 1855 N. Grand Ave., Nogales. Amount owed: $4,035.99.

Russell Sigler/Sigler against Sun Life Assurance Company of Canada and Leslie’s Swimming Pool Supply. Amount owed: $11,774.67. Oremus Materials Inc. against Sunrise LG LLC, Vantage Pppty Invs Stuart JS Gulland, Lowe’s HIW Inc. and LaSalle Bank. Amount owed: $13,778.50.

Release of federal liens Sonoran Drywall Corp., 4989 W. Camino De Manana McClelland Nurse Consulting Inc., 9366 N. Waxwing Court B&M Machine and Denise Ann Smeltzer, 1926 W. Price St. MedAssure of Tucson Inc., 904 W. Grant Road Borderlands Theater Teatro Fronterizo Inc., PO Box 2791, 85702 Formula I Ltd., 596 E. 23rd St. Desert Hues Painting Contractors, 210 N. Wilmot Road, Suite 320

Release of state liens EC and Associations Construction LLC, 5650 S. 12th Ave. 24 Hour Heating and Cooling, 1830 E. Eighth St. #1 San Ignacio Golf Course LLC, 1700 Country Club Drive, Plano, Texas Little Mexico Restaurant, 698 W. Irvington Road B.D. Warbucks Inc., 4116 N. Iroquois Ave. Paperware Systems LLC, 190 W. Continental Road, Green Valley Tucson Wrecker Pool and Denise Smelzer, 1926 W. Price St. Selah Investment Group Inc., 12820 E. Cape Horn Drive Picture Rocks Feed and Arnulfo Quiroz Jr., 5435 N. Sandario Road, Picture Rocks Environmental Strategies Inc., 423 S. Olsen Ave.

Release of mechanic’s liens Efﬁcient Electric Inc. against Campbell Ave. Shopping Center LLC and Riley LLC Collins Excavating & Materials Inc. against CRS DQ Holdings and JPMorgan Chase Bank Sunstate Equipment Co. LLC against Dillon Real Estate Co. Inc. and the Kroger Co. Oracle Control Systems against Wilmot Apartments LP Catalina Drywall LLC against 119 E Toole Avenue LLC Castle Flooring Inc. against DJ Williamson Enterprises Inc. and Himada Properties LLC c/o Jagdism Patel, Carlson Co. Canyon State Electric Company Inc. against Marana Health Center Inc. Nicholas Consolidated Inc. against DND Neffson Co. and General Growth Properties Border States Industries Inc. against CF Holdings LLC PRL Glass Systems against Park Mall LLC and General Growth Properties Fidelity Mechanical Contracting Inc. against Smith Food & Drug Centers Inc. Richard McAvoy Tile against Smiths Food & Drug Centers Inc. PRL Glass Systems against Park Mall LLC A American Electrical Services Inc. against Campbell Avenue Shopping Center LLC, Riley-Tucson LLC and Skechers USA Inc. Abracadabra Restoration against Shamrock LLC Camwest Group Inc against Southgate Academy Temporary Classrooms Vratsinas Construction Company against City South Plaza LLC Essco Wholesale Electric Inc. against ATS Electric Inc., Vratsinas Construction Company, City South Plaza LLC and La Curacao

approach with support staff. We’re trying to make a system that’s value, not volumedriven and to improve the patient experience,” he said. One way this will be done is by hiring nurse case managers to support patients discharged from the hospital. Re-admission rates are excessively high in this country and costly, and Selwyn agrees with the approach. Case managers, he said, will visit patients at home the day after being released from a hospital stay and go over their care, medications and answer questions. They will also ensure these patients keep their one-week

follow-up doctor’s appointment. Selwyn has become so passionate about EMR and the Shared Savings practices, he has put his retirement on hold to help other physicians convert to e-records. And he’s excited about being a part of the new direction in health care, one that he has dreamed of for decades. “I’m at the end of my career, but this has energized me to continue. I’ve seen a lot of interest and passion. My education has been transformational and I’d like to share with other doctors. I see myself being involved for many years.”

REFORM continued from Page 5 the subsidies phase out as incomes rise. And for low-income households, there is still the decision to be made at the state level whether to expand AHCCCS. So, people with incomes below 1.33 times the poverty level may be forced to look toward the subsidies, rather than AHCCCS, to gain coverage.

Employer-based coverage Employers are encouraged to maintain or expand insurance for their workers – with fines of about $2,000 per worker for firms with more than 50 employees that don’t offer coverage. Tax credits are available to help small employers offer insurance. But one unanswered question is how many employers will cease to offer coverage, paying the fine instead. Republican presidential candidate Mitt Romney has warned that up to 20 million people may “lose the insurance they want.” He also cited one survey in which businesses said the law “makes it less likely for them to hire people.” Obama, on the other hand, said, “if you’re one of the more than 250 million Americans who already have health insurance, you will keep your health insurance – this law will only make it more secure and more affordable.” There’s also a steep tax, starting in 2018, on firms offering expensive “Cadillac” health plans, in a bid to discourage escalation of health costs. The law defines these as plans with premiums of $10,200 or higher for an individual, $27,500 for a family, indexed to inflation.

Insurance for children Children can be covered as dependents up to age 26 in all individual and group policies. That provision is already in effect.

Security of coverage Insurers must take all comers. This “guaranteed issue” of insurance means firms cannot deny coverage, or drop it, because of someone’s medical condition. Individual and group health plans are prohibited from putting a lifetime cap on their coverage for an individual.

Personal taxes There are a range of tax hikes. Some are on businesses, such as a 10 percent excise tax on indoor tanning services that went into effect in July 2010 and new fees charged to manufacturers and importers of brand name pharmaceuticals as of 2011. Other taxes will fall on individuals. Among the major taxes are a 0.9 percent hike in the Medicare payroll tax for households earning over $250,000, and a 3.8 percent tax on investment income for higherearning households. The law also sets a new limit for contributions to flexible spending accounts used for medical purposes ($2,500 per year as of 2013, adjusted annually by the cost of living). And it ratchets down a tax deduction on unreimbursed medical expenses. For someone to claim the deduction, the expenses must exceed 10 percent of that individual’s adjusted gross income, as of 2013, up from 7.5 percent currently.

And there’s more One example of the wider reach of the law: Food sold in vending machines and at chain restaurants must come with nutritional labeling.

Material from The Christian Science Monitor was included in this report.

Correction

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

Passenger numbers at Tucson International Airport were down through three of the ﬁrst six months of 2012 but two months of increases — 3 percent in February and 5.2 in March — more than made up for the other months. The Business Travel column in the July 27 issue said passenger numbers had been down more than three months.

Russell Sigler/Sigler against Moreland Arizona Properties LLC, Avondale Auto Group and Tucson Volkswagen. Amount owed: $27,706.89.

Contact information for Susan Chetlin, one of the two lawyers who authored the column on Social Media in the Workplace in the July 27 issue, was left out in the publication. Contact Chetlin, a director and Intellectual Property Practice Group Chair, at schetlin@fclaw.com.

Mechanic’s liens

InsideTucsonBusiness.com

AUGUST 3, 2012

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8 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

AUGUST 3, 2012

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Celebrate Ferragosto with Chef Tenino at Tavolino

Documentary looks back on history of El Casino Ballroom

Ferragosto, an Italian holiday that dates back to the Roman Empire, is being celebrated this year in Tucson when Chef Massimo Tenino presents a holiday feast at 6 p.m. Aug. 12 at his Tavolino Ristorante Italiano. “I love the idea of creating a big family meal with a beach theme. We will push the tables together, as they do in my country, and enjoy a great evening together with my Tucson family,” Tenino says. “The food will be plentiful and the wines will be flowing as I take you on a culinary tour of beautiful Italy.” The menu includes assorted salame, a seafood salad, crab cakes with truffle aioli, lightly fried calamari, homemade pasta and maialino arrosto – a whole suckling pig roasted in the restaurant’s wood-burning rotisserie. Assorted gelatos will be offered for dessert. The cost is $65 per person and reservations are required. At one time Italian businesses closed for vacation for the entire month of August but that has been shortened to just a few days surrounding Aug. 15. It is still marked with big celebratory meals, often at the beach. • Tavolino Ristorante Italiano, 2890 E. Skyline Drive in Plaza Colonial — www. tavolinoristorante.com — (520) 531-1913

The newest documentary from filmmaker Dan Buckley, “Tucson’s Heart and Soul - El Casino Ballroom,” is about the venerable facility at 437 E. 26th St. that has hosted world renowned performers such as James Brown and Fats Domino, traditional Hispanic musicians including Tito Puente as well as untold numbers of family events such as weddings and Quinceñieras over the last 65 years. The film will be premiered at 2 p.m. Sunday (Aug. 5) at the Fox Tucson Theatre, 17 W. Congress St. A suggested $3 admission will be taken at the door.

Chocolate for dinner The Grill at Hacienda Del Sol is taking dessert to a new level with a World of Chocolate dinner Tuesday (Aug. 7). A specially created multi-course dinner will be the only menu item offered for the evening. It’s basically a four-course dinner with a

couple of amuse bouche items added in. (Amuse bouche is a French term that means “mouth amuser” and they’re usually single bite-sized items served compliments of the chef.) MICHAEL LURIA In this case, the dinner starts off with an white chocolate amuse bouche featuring cured Muscovy duck “sashimi” with stone fruit, white chocolate crème fraiche and a honey comb. Then the first course highlights squash blossoms with a white chocolate chevre. Dark chocolate will be used in the preparations of the next two courses, a rabbit loin and filet mignon with seared foie gras. The second amuse bouche will precede desert and is a chocolate macaroon with dark chocolate ganache and white chocolate. Finally, the official dessert is called “Shades of Chocolate” and features Saigon milk chocolate mousse, dark chocolate biscuit, white chocolate cream and cocoa nibs. The cost is $65 per person,including wine pairings. The Grill is taking reservations starting at 5:30 p.m. • The Grill at Hacienda Del Sol, 5501 N. Hacienda Del Sol Road — www.haciendadelsol.com/dining/ — (520) 529-3500

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

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Music The final two “Friday Night Live” concerts at Main Gate Square take place this month. At 7 p.m. tonight (Aug. 3) local singer Crystal Stark will be on stage at the Geronimo Plaza Courtyard, 820 E. University Blvd. Then, on Aug. 17, the band Sonoran Soul will perform its mixture of fusion and funk. The concerts are free. Casino Del Sol’s AVA Amphitheater, 5655 E. Valencia Blvd., features a trio of shows this weekend. At 8 p.m. tonight British soul and R&B singer-songwriter Seal will be on stage with special guest Macy Gray. At 8 p.m. Saturday, Latin music acts Los Tigres Del Norte and Banda El Recodo will be in concert, live in concert together. And at 8 p.m. Sunday Latin rap musician Pitbull performs. Ticket information is online at www.CasinoDelSol.com.

Art The galleries at Tohono Chul Park, 7366 Paseo del Norte northwest of Oracle and Ina raods, are hosting a pair of exhibits. One is “Contemporary Ceramics,” HERB STRATFORD featuring the work of several local ceramic artists in a show that will be up until Oct. 21. The other exhibit, “Pollinators: The Art of Interdependence,” features 14 different artists’ works depicting scenes of nature in this region, which will be up through Aug. 12.

Film The big film release of the weekend is the remake of “Total Recall” starring Jessica Biel, Kate Beckinsale and Colin Farrell, in the role made famous by Arnold Schwarzenegger in 1990. The sci-fi thriller looks pretty good but the campy classic will be hard to beat. Also opening this week at the Loft Cinema, 3233 E. Speedway, are two films of note, “Bill W.,” a documentary about the founder of Alcoholics Anonymous, and “A Cat in Paris,” which is an animated film about a cat burglar and a cat.

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 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

SALES SALES JUDO

A look at how revenue producers feel about their jobs As part of exploring the possibilities of becoming revenue producers themselves after graduation, this summer 43 students in the University of Arizona’s Marketing Minor program interviewed 18 revenue producers working in both the for-profit and non-profit sectors. Here are some of the responses they reported that I found interesting. (I’m noting the responses from the non-profit sector with “NP.”) • What do you like most about your job as a revenue producer? “I like working with clients and providing the best solution for each. Every day is different, and no day as a revenue producer is ever the same.” “It’s very challenging, and I’m never bored. I love the ‘hunt’ for new business. I’m also well paid!” “I like the products that I sell, my co-workers and the company, which feels like a family!” “I like dealing with a variety of people and different business situations. I also like going on sales calls and getting out and about.” “My boss is a great mentor, and I feel that there are good opportunities for advancement. I also like the product and the organization!” “I really like the mission that my charity supports and raising money for the people it helps. I also like building relationships with my donors. I also like working with a team of committed co-workers.” (NP) • What do you like least about your job? “I don’t like weekly meetings that have nothing to do with me or my department!” “We have a lot of turnover in sales and management staff, and it gets frustrating

dealing with so many new co-workers.” “I don’t like having to fill out paperwork, and some of my managers haven’t been good at all.” “I don’t like SAM WILLIAMS being drawn into collection activities or dealing with deadbeat customers. Also, I don’t enjoy dealing with paperwork.” “The long hours and work over the weekends are issues for me.” (NP) “I don’t like the economic pressure on our donors and the short-term thinking we sometimes encounter. And I wish we could do more for our community.” (NP) • How would you advise me for a career as a revenue producer? “If you always ‘do right’ by your client, it will come back to you 10 fold. Never ever sell them something that is driven by your needs, only by theirs. If you try to push a product on then, they’ll soon know the difference, and you’ll never have a repeat sale.” “Generating revenues isn’t easy. It’s very competitive, and the economy has been on a roller coaster. Prepare to be underappreciated, overworked and overlooked on a regular basis, and don’t let it get to you. Grow some thick skin and always remember that your clients come first. I realize that this may sound negative, but I truly love what I do and have a great relationship with my coworkers. I have fun at work and look forward to coming in to my job…most days.” “You must show initiative and be a

self-starter and a self-promoter. No one will tell you what to do. It’s almost like you are the owner of your own business.” “Revenue generation is a portable profession, and good producers are always in demand. But assess your own personality before you dive into the field. If you are shy, introverted or easily discouraged, you probably won’t be happy or successful as a revenue producer.” “You won’t close every opportunity. If you lose one and whenever you can, learn why you lost it, and don’t take it personally.” “Some ‘major gifts,’ can take a year or two, sometimes longer, so be patient. Also have a lot of these opportunities in motion at one time so that you can produce revenues on a regular basis.” (NP) “If you go into fundraising, be sure to find something that you absolutely believe in and have a passion for. Also, if you are a female, find strong female role models and mentors. Finally, fundraising isn’t a hard sell or a one-call close. It’s much more about building and maintaining relationships.” (NP) • Tell me a little about your educational background. Most of the revenue producers interviewed had some college, a college degree or an MBA. All in the non-profit sector had college or masters degrees. Most had received additional sales or fundraising training from either their own or third party organizations. Here are some general observations: The vast majority of the undergraduates who participated in this summer’s Marketing Minor program — perhaps as many as 35 out of 43 — initially didn’t like the idea of working as revenue producers unless they viewed it from the perspective of

“selling themselves” to get a job. For the most part they felt this way for one or more of three reasons: 1. They didn’t see the field as a true profession 2. They thought it was populated by pushy, manipulative and not very well educated people 3. They associated revenue generation with simple, one-call-close transactions. The eight or so students who were comfortable with the idea of working as revenue producers from the start had either done so previously or were interested in working with non-profits as fundraisers. By the end of the course most students came to understand the field of complex, consultative sales involves a number of steps and skills and is indeed a profession. Also they learned that transparent or manipulative closing techniques in this type of revenue production aren’t effective and that most successful producers and fundraisers are well educated and continually upgrade their skills. At a minimum, they learned to see themselves as products with a multitude of features and benefits that they then had to sort through and to configure to meet the needs of potential employers.

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

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InsideTucsonBusiness.com

AUGUST 3, 2012

PROFILE

The race against a million deaths begins at Tucson’s C-Path By Dave Tedlock Inside Tucson Business When I’ll Have Another won the Kentucky Derby in May, no one talked about the hundreds of millions of dollars each year that is lost by the owners of the thousands of horses that lose countless races. Now, imagine a horse race impossibly longer and riskier than the derby, not a mile and a half long and completed in just under two minutes and two seconds, but a race stretching from New York to Los Angeles, not run on a groomed track but on a mere path and taking even the best horse about 10 years to complete at a cost to the owner of about a billion dollars. That’s right: 10 years and a billion dollars. That’s the race companies of all sizes must enter when they decide to try to win approval from the U.S. Food and Drug Administration (FDA) of a new medical product. In healthcare, the race course is known as the “critical path.” By 2006, the FDA acknowledged the severity of the problems with the critical path, the decreasing number of medical products entered into the race and issued a “Critical Path Opportunities List,” itemizing 76 “specific opportunities that, if implemented, can speed the development and approval of medical products.” These 76 needs include item number “7: Circulating Biomakers in Cardiovascular Diseases” and number “30: Improving Extrapolation of Animal Data to Human Experience.” Unexpectedly enough, world-wide, the single most significant response to the FDA’s plea for help in dealing with one of the greatest threats to the quality of global healthcare has come from Tucson. Beginning with the University of Arizona’s Dr. Raymond Woosley and with the help of scientists and investors (many of them from Tucson) and Science Foundation Arizona, Critical Path Institute (or C-Path) was created. Woosley’s expertise is in pharmacology. That’s the field – human drugs – that the average person believes FDA approval is all about, but drugs are actually one-third of the equation. If human drugs are the Kentucky Derby of FDA approval, then biological products (vaccines and gene therapies) and medical devices (heart values, machines dispensing radiation therapy) make up rest of the Triple Crown. C-Path’s mission is to transform all three race courses from impossibly long, risky, paths to the medical equivalent of Interstate highways with ever-increasing speed limits. This year, under the direction of new President and CEO Dr. Carolyn Compton, C-path is transforming itself from start-up to worldwide leader. In Tucson terms, Compton has the relentless energy and force of a Jim Click (an early financial supporter) and the scarysmart intelligence of Holualoa’s Michael

Kasser (Harvard MBA, Ph.D. in engineering, member of C-Path’s board of directors. Compton’s Harvard University MD and Ph.D., and her extensive and diverse healthcare leadership background are suitably impressive, but her most striking characteristic is her ability to energize a room BIZ FACTS and communicate with detail Crtical Path Institute (C-Path) and intensity. 1730 E. River Road Having a converhttp://c-path.org/ sation with her is (520) 547-3440 a bit like drinking from a fire hose. Her answers are forceful, detailed, and passionate. “We want every winning drug, every biological product, every device to complete that path, that race faster and less expensively than ever before with new products even safer for CAROLYN COMPTON patients,” she explains. Thus C-Path, based in Tucson with about 50 scientists on board and a budget of a mere $7 million, has taken on a mission so enormous that descriptions such as “herculean” and “monumental” seem inadequate. Make no mistake. Tens of millions of lives are at stake. A popular but ignorant first thought might be that incompetent and lazy government bureaucrats within the FDA are the problem, but the hard truth is that a plethora of problems exist, from academic scientists paying no attention to even the starting gate for medical product approval to drug companies being reluctant to let their scientists collaborate even on how the racecourses can be improved. The result: countless patients die every year because even if there might be a treatment for their disease, vard Medical School as part of the 10 perit hasn’t been approved yet, or worse yet, the cent of her class who were female, she never treatment hasn’t even been entered into the imagined the peak of her healthcare career race because approval costs too much and would involve fund raising. So how does she feel today about being a CEO who must be takes years. “Cancer patients measure their lives in involved in raising millions of dollars to save months, not years,” Compton says. “Sev- millions of lives? “It’s absolutely the greatest opportunity, enty percent of cancer patients do not benefit from treatment. For many cancers, there the opportunity of a life time, to make a difsimply is no therapy available.” C-Path recently won straight-up praise for its value from Congress when it re-authorized federal funding of the institute’s partnership with the FDA. But one of Compton’s key challenges remains the need to persuade a wide range of players in healthcare, from foundations and universities to big pharmaceutical companies, to commit to the longterm funding of C-Path’s work. Bottom-line, all pharmaceutical companies benefit from C-Path’s successes regardless of whether they’ve made a financial contribution to C-Path. For-profit organizations no doubt ask themselves why they should sacrifice bottom-line profits when a competitor might foot the bill. The easy decision is to let the other guy pay up. Of course when Compton entered Har-

ference in healthcare,” she answers without hesitation. “We have a great team here. Our people are smart, dedicated and diverse. They are truly mission-driven people and that’s why they’ve chosen to work here. We are ready to take off into a new era.” So much depends on C-Path’s success. Focused on the race. Standing alone and yet acting for all.

12 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

GOOD BUSINESS ON GUARD

6 ways to a better relationship with a disgruntled employee Every manager or business owner has experienced a disgruntled employee. Not only can it be incredibly challenging to deal with such an employee, it can also have a profoundly negative effect on a business if not addressed – and quickly. Unhappy employees may offer your customers less than satisfactory customer service, they can and do spread their toxic behavior to others on your team, they may make numerous and careless mistakes, and in the worst cases they may even steal from the company. In some cases there’s little management can do to get through to an unhappy employee and the only alternative may be to part ways, but there are steps businesses can take to attempt to address the issue(s) driving the unhappiness. Recent research conducted by the Harvard Business Review found that of the over 160,000 employees they surveyed, about 6 percent classified themselves as having low levels of both job satisfaction and commitment to their employers. As researchers for the Harvard Business Review went through the data they were able to separate managers who presided over staff that was largely unhappy, and managers whose staff reported higher levels of job satisfaction. They were then able to pinpoint six areas where managers that managed satisfied staff excelled, and where managers that managed unsatisfied staff were failing. Based on the survey answers of both satisfied and unsatisfied employees, Harvard Business Review was able formulate suggestions in six areas for how businesses can attempt to improve their

relationships with wayward employees: 1. Encourage me more. Harvard Business Review’s data suggests that managers who actively encourage their employees KIM STATES end up managing more satisfied employees. Sounds simple, right? When asked what the most important skill their boss should demonstrate, the top response of the group classified as having the lowest levels of job satisfaction was the ability to “inspire and motivate others.” Managers should make it a daily routine to find positives in their employees’ performances, and then let them know about it — immediately and often. 2. Trust me more. We discuss trust a lot at the Better Business Bureau (BBB). Usually you hear us talking about the importance of trust between businesses and consumers, but trust within a company is just as important. Harvard Business Review found that among unhappy employees and their managers, both groups shared a mutual distrust of one another. In cases such as this it’s important for the manager to make the first move by attempting to understand what’s contributing to an employee’s lack of trust, the Harvard Business Review says. After they do that, both manager and employee must “strive for consistency” in how they approach their working relationship. Trust can’t be built in a day, but it can be earned

TUCSON BBB ACTIVITY REPORT JULY 2012 Top 10 most complained about industries

Complaints

Settled

Auto repair and service

100%

Air conditioning contractors and systems

83%

Correspondence schools

100%

Property management

100%

New car auto dealers

100%

Restaurants

50%

Used car auto dealers

100%

Collection agencies

100%

Car wash and polish firms

67%

Plant, tree, etc. nurseries

100%

Top 10 most inquired about industries

Inquiries

Air conditioning contractors and systems

2,097

Roofing contractors

1,987

Auto repair and service

1,198

Plumbing contractors

1,060

General contractors

990

Used car auto dealers

896

Travel clubs

820

Correspondence schools

812

Pest control services

756

Property management

696

10.

Source: BBB of Southern Arizona

gradually over time. 3. Take an interest in my development. Stay engaged with what your employees are doing without appearing to micromanage

them. This will help your employees thrive in their role for the company, while

CONTINUED NEXT PAGE

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AUGUST 3, 2012

GOOD BUSINESS simultaneously letting them know that what they do matters. Harvard Business Review says this rule applies even to underachievers — challenge them to perform better. Being engaged also helps you identify areas of training that can fill in performance gaps. 4. Keep me in the loop. It can’t be stressed enough: communication is absolutely crucial to a manager-employee relationship. Harvard Business Review lists three things great communicators do well: • They share information, and keep everyone well informed. • They ask good questions, while at the same time inviting opinions and views from others. • They listen, and not just to the people they like. 5. Be more honest with me. Be honest with your employees about their performance, even if they’re doing a poor job. Among the group of disaffected employees many said they felt their boss was not giving them honest feedback. Of course, this point loops back to trust. The truth might hurt, but

it’s the only way build trust between yourself and your employees. As the Harvard Business Review put it: “honesty is the bedrock of good relationships.” 6. Connect with me more. Be careful not to exclude your employees. Harvard Business Review’s data shows that favoritism is rampant in firms: managers will go to lunch more often with employees they like. They’ll talk to them more socially (about children, sports, etc.), and they’ll know certain employees more personally. This is often natural among people who share interests, but so is the feeling of exclusion it creates among the less favored. Harvard Business Review suggests that by making even just a small effort to “spread their affection,” managers can go a long way towards making all their employees feel more included.

Contact Kim States, CEO of the Better Business Bureau of Southern Arizona, at kstates@ tucson.bbb.org or (520) 888-6161. The BBB website is www.tucson.bbb.org. On Guard appears the first week of each month in Inside Tucson Business.

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14 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

PEOPLE IN ACTION NEW HIRES SunLife Home Health has hired Lynne Black as director of clinical services. Black has more than 30 years experience as a registered nurse with 25 years in home health care experience. Home Instead Senior Care - Tucson has hired Christine Takerian as community relations manager. She will be responsible for providing educational workshops and outreach programs to business and community members. Prior to joining the staff at Home Instead Senior Care, Takerian was a recognized speaker, educator and consultant in the healthcare and disability industry. Marian Porubsky, MD, has joined the University of Arizona Department of Surgery, Division of Abdominal Transplantation and Hepatopancreaticobiliary (HPB) Surgery, as assistant professor. Porubsky performs all solid organ transplant procedures â&#x20AC;&#x201C; kidney, liver

LYNN BLACK

and pancreas. Porubsky attended medical school at Komensky University Bratislava in Slovakia. Following his general surgery residency training at the University Hospital Essen, Germany, he completed a research fellowship and a general surgery residency at the University of Illinois at Chicago. He recently finished a fellowship in organ transplantation at Indiana University Medical Center in Indianapolis. ELECTIONS Jim Lubinski has been elected president of Rotary Club of Tucson. Lubinski will serve as president for the 2012-2013 Rotary year. Lubinski joined the Rotary Club of Tucson in 2003 and has served as

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a director of international services and worked on many programs including the Nogales Wheelchair Project and the annual Tucson Classic Car Show. Mary Davis, senior director of business development and marketing for Tucson Airport Authority (TAA), was recently voted onto the board of directors for SALARA, Southern Arizona Lodging & Resort Association. SALARA is a membership organization focused on fulfilling the local hotel and resort industryâ&#x20AC;&#x2122;s education and advocacy needs. Davis manages TAAâ&#x20AC;&#x2122;s efforts related to commercial/ industrial and air service business development, marketing, advertising, public, community and

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{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 â&#x20AC;&#x153;People in Actionâ&#x20AC;? button. From there you can submit your announcement and weâ&#x20AC;&#x2122;ll publish it online and in print. government relations. PROMOTIONS Miraval has announced that Carol Stratford has been named vice president of marketing. Stratford will oversee the reservations and revenue management functions at Miraval in addition to the marketing strategy. Stratford has 16 years of experience in marketing, public relations and communications. Prior to joining Miraval, she spent four years as

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director of marketing for The Homestead, a historic, luxury destination spa and golf resort located in the Allegheny Mountains of Virginia. Stratford received a masterâ&#x20AC;&#x2122;s degree in mass media communications from the University of Akron. AWARDS The International Society of Antioxidant in Nutrition and Health (ISANH) Scientific Committee has awarded Dr. Iman Hakim, dean and professor of the Mel and

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Enid Zuckerman College of Public Health, with best Short Oral Presentation at the 2012 International Conference on Polyphenols in Paris in June. Hakimâ&#x20AC;&#x2122;s winning presentation was titled â&#x20AC;&#x153;Modulation of Oxidative Damage by Green and Black Tea: Role of Smoking and Gender.â&#x20AC;? Dr. Francisco Garcia is the recipient of the Victoria Foundationâ&#x20AC;&#x2122;s Dr. Eugene Garcia Outstanding Latino Faculty award for Research in Higher Education (Research Institutions). Garcia is a professor of public health, chair of the section of family and child health, and director of the Center of Excellence in Womenâ&#x20AC;&#x2122;s Health. The award recognizes a faculty member who has demonstrated

excellence in research and teaching and has provided significant contributions to his academic discipline. Bobby Rich, of Journal Broadcast Group was awarded the GTL Community Leadership Award. Each year Greater Tucson Leadership (GTL) chooses a recipient for the GTL Community Leadership Award whose commitment to and active involvement in the community exemplifies proven leadership. Rich was chosen because he has demonstrated extraordinary leadership in the Tucson community. Rich has dedicated his career to radio broadcasting, programming and managing.

APPOINTMENTS Kevin R. Yeanoplos, director of valuation services for Brueggeman and Johnson Yeanoplos, is the new chair of the Arizona Board of Appraisal. Yeanoplos was appointed to the board in 2010 by Governor Janice K. Brewer and was recently elected chair by members of the board. Yeanoplos frequently testifies as an expert witness in state and federal courts and lectures on valuation, litigation and financial analysis issues for other valuation professionals, judges and attorneys in Canada and throughout the United States.

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InsideTucsonBusiness.com

AUGUST 3, 2012

MEDIA

Katie Couric’s new show launches next month, but not in Tucson By David Hatfield Inside Tucson Business To hear some tell it, Katie Couric, former anchor of “CBS Evening News” and co-host of the “Today” show, could become the next Oprah Winfrey when her new daytime talkshow launches Sept. 10. The new syndicated show has been snapped up by TV stations in 95 of the nation’s top 100 markets. But not in Tucson. The hour-long show is being distributed by the syndication arm of Disney-ABC and will be shown on many ABC owned and affiliated stations when the network cuts back on an hour of daytime programming in the fall. In Tucson, ABC-affiliate KGUN 9 has opted instead to fill that hour at 2 p.m. weekdays with a new talk show by “Survivor” host Jeff Probst. NBC-affiliate KVOA 4 similarly found itself looking to fill a daytime hour with the cancellation of Nate Berkus’ show but opted to pick up a new show hosted by actress Ricki Lake, who is looking to stage a comeback with her second daytime TV talk show. Among Tucson stations, some of the biggest changes in daytime syndicated fare are taking place at Fox-affiliate KMSB 11 where Robert Canales, director of sales and station operations, says the station is beefing up its daytime block of talk shows. But instead of Couric, KMSB is adding one show hosted by comedian Steve Harvey, that will air at noon weekdays, and the other is hosted by Trisha Goddard, a conflict resolution expert, that will air at 1 p.m. Canales says KMSB is also adding a new show to lead-off its afternoon block of court shows at 2 p.m. It’s called “Last Shot with Judge Gunn. Presiding over the courtroom is former Washington County, Arkansas Circuit Judge Mary Ann Gunn offering people who had been convicted of various drug offenses and minor acts an alternative to prison. Aside from the imagery, the title refers to people getting a “last shot” at redeeming their lives. It’s not your run-of-the mill small claims, divorce or family squabble court room, Canales says. Neither CBS-affiliate KOLD 13 or CWaffiliate KWBA 58 are making changes to their daytime line-ups next month. As for why Couric’s new show didn’t get picked up, local station execs didn’t offer reasons for rejecting it, per se. The situation was more a matter of none seeing a reason to pick it up. Especially, as one confided, considering the stiff licensing fees ABC syndication was asking. They had to, judging from trade reports that have calculated the costs to produce Couric’s show will amount to about $1 million a week — it will produced live every afternoon in New York — and there’s another $20 million that’s supposed to go Couric and her executive producer Jeff Zucker, former president and CEO of NBC before majority ownership was bought out by Comcast last year.

Names in news Gina Trunzo has notified officials at KOLD 13/KMSB 11 that she won’t be returning as co-anchor of “Fox 11 Daybreak.” Trunzo has been away on medical leave since mid-May. She and Mark Stine had cohosted the 7-9 a.m. “Daybreak” on KMSB since it was launched on Feb. 1 under a shared services agreement in which KOLD produces news programming for both KMSB and KOLD. Trunzo had been a weather and entertainment reporter at KMSB prior to the shared services agreement and was reportedly one of the first onair personalities KOLD taped after the agreement was made. The circumstances surrounding her medical leave have been kept quiet and haven’t even been subject to the usual media gossip. Trunzo and orthodontist Dr. Richard Ziehmer were married last October. Debbie Bush, general manager of KOLD, expressed sadness over Trunzo’s departure and said the stations would begin a search for her replacement. Reporter Jessica Chapin is leaving KGUN 9 to take a job as a digital journalist with the City of Gilbert. Her last day at KGUN will be Aug. 10. Long-time Tucsonans might remember

Gina Trunzo

air again but promising to keep listeners informed and entertained online at http://timandwilly.com/ . Although the pair insisted their parting with their latest employer, KMLE, which is owned by CBS, was amicable, they believe they were cut because station management wants to play more music.

K-Love moves transmitter

Tim Hattrick and Willy D. Loon, who were teamed together as “Tim and Willy” from 1990 to 1993 doing the morning show on KRQ 93.7-FM and setting ratings records for the station. They left KRQ unceremonious as part of an ownership change and moved to Phoenix where they went country, working at one station for three years, before going to another for 10 years and then back to their original station in 2009. Now they’re off the

Radio station K-Love KLTU 88.1-FM is now broadcasting with more power from its new transmitter location in the Tucson Mountains west of downtown. Doug Martin, president and general manager of the Good News Communications, says the new site gives K-Love vastly improved reception in northwest Tucson and Oro Valley making it comparable to other major FM stations in the market. The station had been broadcasting from atop Mount Bigelow in the Santa Catalinas. Along with the relocation of the transmitter, K-Love has boosted power to 15,000 watts from 1,500 watts. K-Love features a format of adult contemporary Christian music distributed by Educational Media Foundation.

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

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16 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

LOOKING BACK REMEMBERING TUCSON

Bazy Tankersley and her lifetime passion breeding Arabian horses For 70 years, Ruth “Bazy” Tankersley, owner of Al-Marah Horse Farm has raised and bred more than 2,500 Arabian horses. She loves her purebreds, and the world respects her as one of the finest Arabian breeders. Last year, the American Horse Association named her Breeder of the Year. In the early 1940s, the socialite, a member of the McCormick family in Chicago, came to Tucson with her first husband, Peter Miller after he was diagnosed with epilepsy. Bazy had raised her first Arabian as a teenager, so when she came to Tucson she developed a 40-acre horse farm she named Al-Marah, which translates to “a verdant garden oasis.” By the early 1970s, Al-Marah expanded to 110-acres and become known as the world’s oldest privately-owned Arabian horse breeding farm. With the specific goal of breeding a horse with a gentle disposition, Bazy McCormick Miller, as she was known at the time, searched for the world’s top stallion to sire her dynasty. Her foundation stud claimed a lineage tracing back two centuries to the prophet Mohamed Ali the

Great of Egypt. The horse’s name was Indraff, a gray Arabian stallion foaled on May 9, 1938, and sired by Raffles that had been bred in England and imported MARY LEVY PEACHIN to the U.S. “When Indraff walked out of the stable door, he fulfilled my dreams and defined my mental image of the ideal Arabian horse,” Tankersley said. Indraff sired 254 purebred Arabian foals, and had more than 2,700 grandget or offspring. Returning to Illinois and then going to Washington, D.C., she continued using the Al- Marah name for farms in Illinois, from 1944 to 1949, and then Maryland, from 1949 to 1975, while she worked in the family newspaper publishing business. “I was so lonesome for Tucson. I missed the mountains and the desert,” Tankersley recalled. “Whenever I received a copy of Arizona Highways, I would cry.”

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Bazy Tankersley

Born into the prestigious and politically active McCormick family, Tankersley’s grandmother, Ruth Hanna McCormick, was a Congresswoman from Illinois and her father, Joseph Medill McCormick, served in both the U.S. Senate and House of Representatives. Her uncle, Robert Rutherford “Colonel” McCormick, owned the Chicago Tribune and the Washington Times-Herald, which was later acquired by the Washington Post in 1954. In 1949, Colonel McCormick put Bazy in charge of his Washington, D.C., newspaper. “When I took over at the Washington Times-Herald, I met editor Garvin Elmo “Tank” Tankersley. I didn’t know that he would become my future husband,” Tankersley recalled. As the romance between Tank and Bazy developed, news of the affair motivated the Colonel to end it. Tank came from a large, but poor family from Lynchburg, Va. The Colonel did not find Tank to be of appropriate status. The young couple went undercover traveling by train between Chicago and Washington to see one another. Tiring of the commute, they decided to get married and eloped. In 1955, on his death bed the Colonel acknowledged his mistake in trying to keep the two lovers from marrying. “Other than studying genetics for two years at Vermont’s Bennington College between 1939 and 1941, I virtually had no education,” Tankersley said. But that didn’t prevent her from having an appreciation for education. She started two schools in the east and when she returned to Tucson, “I felt that the city deserved a top rated private high school.” In 1980, she founded St. Gregory College

Preparatory School and appointed Russell Ingersoll as its principal. From her first marriage Tankersley had two children, Kristie Miller, a biographer and author of “Ellen and Edith: Woodrow Wilson’s First Ladies,” and Mark Miller, who owns Arabian Nights, an Arabian horse dinner theater in Kissimmee, Fla. Bazy and Tank had one daugther, Tiffany, born in 1970. She is emphatic about the subject of disposition when it comes to Arabian horses. Not long ago, her 4 year-old greatgranddaughter wanted to ride. “She rode the horse with the best disposition, a stallion.” Tankersley is noted as a rare and legendary breeder. In 1890, Britain’s Lady Anne Blunt and her husband Wilfred purchased an Arabian from Egyptian Ali Pasha Sherif to breed at the Crabbet Stud. When Blunt’s daughter Lady Wentworth died, Tankersley imported the finest of their Arabians and brought them to America. She considered these horses as part of her quality Arabian foundation stock, one whose lineage she would never compromise. Now at the age of 91, Tankersley feels that “The best husbandry practice is to let Arabians live with minimum stall time and a maximum amount of time enjoying the company of other horses.”

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

InsideTucsonBusiness.com

AUGUST 3, 2012

NEWS GET ON THE LIST

Next up: Asset management firsts, Aeronautical firms 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: • Aug. 10: Business and industrial parks, Commercial office, Shopping centers • Aug. 17: Asset management firms, Aeronautical firms • Aug. 24: Highest paid city and county officials, Salary comparison of regional government officials • Aug. 31: New car dealers • Sept. 7: Television stations, Radio stations 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.

MANUFACTURING

Arizona recycled paper mill to shut down as of Sept. 30 A paper mill that helped make Arizona a leader among states in newsprint recycling a decade ago will permanently shut down as of Sept. 30. Catalyst Paper, headquartered in British Columbia, announced Tuesday it is closing the plant in outside the town of Snowflake due to the drop in demand for newsprint and an inability to sustain profitable operations. The plant employs 308 people in a town that has a population of 5,600. Catalyst acquired the Snowflake Mill and Apache Railway Company in 2008 and has continued to supply most of the newsprint in Arizona and the Southwest. John Lundgren, print operations manager for the Arizona Daily Star, said that although his newspaper is currently using a large per-

centage of paper produced at Snowflake, it has plenty of inventory on hand and he expects other West Coast suppliers will be able to meet demand after Sept. 30.

COMMERCIAL REAL ESTATE

Eastside retail center noticed for foreclosure An investment group that owns Catalina Village Plaza, a retail complex at 7800 E. Wrightstown Road, has defaulted on its loan and has been noticed for public auction in October. A notice of trustee’s sale has been filed on Kaufman Catalina Village-DE LLC, California-based ownership, that has defaulted on the original $6.9 million loan. Catalina Village is at the southwest corner of Wrightstown and Pantano roads. The trustee’s notice lists 23 unit addresses at the site that was built in 2001. The current beneficiary is GSMS 2005GG4 Wrightstown Road LLC, an affiliate of LNR Partners of Miami Beach, Fla. The sale is being handled by the Phoenix office of Snell & Wilmer. The auction is scheduled for 1:30 p.m. Oct. 23 at Snell & Wilmer’s Tucson office, 1 S. Church Ave., Suite 1500.

EDUCATION/RESEARCH

New Pima College provost is now on the job Jerome Migler started his new job Monday (July 30) as Pima Community College’s provost and executive vice chancellor. Migler, who was hired in May, will oversee academics at the college. Charlotte Fugett, who served as acting provost and executive vice chancellor since March, will return to her position as president of PCC’s East Campus. Before coming to Pima, Migler served as the executive vice president and provost of Minnesota State Community and Technical College in Moorhead, Minn.

EVERY MORNING DAILY NEWS — DELIVERED TO YO YOU! OU!

SI O T E E FR

Millions in taxes should have gone to Rio Nuevo By Patrick McNamara Inside Tucson Business It appears that millions of dollars paid by businesses in state sales taxes over at least seven years should have gone to Rio Nuevo, but didn’t. Like other retail businesses, those within the boundaries of the Rio Nuevo tax increment financing (TIF) district — generally downtown Tucson and along Broadway east to Wilmot Road — are required to file with the Arizona Department of Revenue a TPT-1 business transaction privilege, use and severance tax returns document. But the businesses within the TIF district are supposed to include a code on the form so the proper amount of tax money is sent to Rio Nuevo. The trouble is, some businesses either didn’t know about the code or omitted it for other reasons. “Some have put the code on the forms but they aren’t in the district,” said Tucson Assistant City Manager and Finance Director Kelly Gottschalk. That makes it difficult to pinpoint exactly how much money is involved. Gottschalk estimates that she and her staff at the city have been able to identify more than $12 million that should have gone to Rio Nuevo, including $2.2 million that was found in June. Getting that money applied to the district is another matter. To do so, the city has been lobbying the Arizona Department of Revenue to release the money to the district. In some cases the identified funds still owed to Rio Nuevo have gone back to 2005. With the state this year finally looking at a possible budget surplus after years of deficits, “It’s a hit to them,” Gottschalk said. But in working with the Department of Revenue, Gottschalk said there have not been any issues in getting the money. Voters in 2000 approved the Rio Nuevo TIF district, which basically diverts state

sales tax revenues collected over and above the 1999 baseline year to be used to fund downtown redevelopment. Tucson’s efforts at getting the Rio Nuevo district its due would seem to belie the fact that the two entities have been involved in a highly publicized feud, which at times grew toxic. “I think there is a public perception of the feud,” said Rio Nuevo Board Chairman Fletcher McCusker. “But then there’s the worker bees like Michele (Bettini, the district operations administrator) and Kelly (Gottschalk) who get the job done.” Working on that cooperation, McCusker said the district has begun to compile a list of the more than 1,100 merchants in the TIF that are to be contacted individually. He said he and other Rio Nuevo representatives want to educate business operators in the district about how to correctly file their state transaction privilege tax forms. “They’ve all been paying their taxes, it’s just a question of making sure it gets properly allocated to Rio Nuevo,” McCusker said. He said the district has received permission from the state to search back three years for taxes that should have been paid to Rio Nuevo. As further indication the sales tax problem persists, Gottschalk said the city has found that as much as $175,000 in construction sales taxes from the Cushing Street Bridge project that was due to Rio Nuevo but has not gone to the district. Further, SunLink, the modern streetcar project, also poses an issue for district funding, Gottschalk said. That project, which includes laying commuter train tracks from the University of Arizona Medical Center on Campbell Avenue through the university campus and downtown, has a budget of $196 million. With much of the work occurring in the district, Rio Nuevo stands to benefit financially by assuring that the contractors and construction companies doing the work have properly coded their state tax documents.

B! A T R E T LET S W E N HE T K C I L ND C

MA O C . S S INE S U B N CSO U T E D Are you interested in business I S N I O T news everyday? SO ARE WE! GO : P U N G

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18 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Need it or not, consider long-term insurance Denial or Fear. My discussions with clients regarding long-term care planning often result in the following responses: “I’m just going to drop dead.” “No one in my family ever needed long term care.” “I’m a veteran, the government will take care of me.” And “I will self-insure.” Or, to the contrary, a couple discloses the devastation to the family when their estate and legacy was lost to the cost of providing long-term care. First, understand the risk. It is either zero or 100 percent. Either you will need long-term care or you won’t. Statistics tell the story but you don’t know which side of the statistics you will be on. Let’s look at the facts. The American Association for Long Term Care published these statistics from 2010: • Claims by age 60-69: 7.5 percent 70-79: 31.5 percent 80+: 59.2 percent • Primary causes for claims Under age 65: Cancer Ages 65-74: Cancer and Alzheimer’s Age 75+: Alzheimer’s • Long term care claims paid Home care: 42 percent Assisted living: 27.5 percent Nursing home: 30.5 percent • Average cost of care (this is for 2010) Home health aide: $21 per hour Assisted living: $3,100 per month Nursing home: $220 per day; $80,300 annually for a private room Women have 10 times the chance of men of reaching age 85 and are twice as likely to be living alone at older ages. They are far more likely to go to a nursing home and more likely to suffer from Alzheimer’s. Single women represent 41 percent of all claims paid, while married women represent 25 percent. Some frequent reasons women receive long-term care insurance benefits are dementia, cancer, fractures, stroke, osteoarthritis, and chronic obstructive pulmonary disease (COPD).

Options: 2 types of insurance Traditional long-term care insurance is much like car insurance. It is built based upon a number of moving parts including: daily benefit, benefit period, cost of living adjustments (either simple or compound), elimination period and other options which vary by insurance company. With traditional long-term care insurance you pay premiums and may never need to use it. Premiums are tax-deductible up to a point. Consult your tax advisor. Asset-based long-term care insurance is a

popular hybrid of life insurance and long-term care insurance that is underwritten for both mortality and morbidity. It’s like self-insuring but provides substantially more leverage per dollar. For SUSAN MOORE VAULT example, a 60 year old woman in good health can invest $100,000 into this type of policy and receive an initial death benefit of $265,000 with a long-term care benefit of $436,000. This would give her 5 years of coverage at up to $6,057 per month. The insurance company accelerates the death benefit to provide tax-free monthly long-term care benefits. This example includes a simple interest inflation adjustment of 3 percent annually. The client can take back her full $100,000 investment at any time for 15 years with no penalty. Asset-based long-term care insurance is ideal for high net-worth individuals who would otherwise self-insure or who have money in a certificate of deposit or other under-performing investment. This type of plan creates a tremendous opportunity to maximize your return on investment. By transferring the money to the insurance company, the company is “on the hook” for life insurance and long-term care protection without jeopardizing access to the funds if needed for something else. A no-lose proposition is created. You are leveraging up the money 200 to 400 percent. If you never need long-term care, there is an income tax-free death benefit. If you need long-term care, it is there. If you want to take the money back, there is no penalty for 15 years. People buy long-term care insurance to protect their assets and because they do not want to become a burden to their children or other loved ones. It is an important consideration. Surely you will agree, it is better to have it and not need it than to need it and not have it. Whether you are in denial about the possibility or fearful of it, consider your options and talk to your insurance advisor to determine what is best for you and your future.

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

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

Company Name

Symbol

Aug. 1

Jul. 25 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.05 0.01 12.31 40.15

0.04 0.01 12.67 40.77

0.01 0.00 -0.36 -0.62

0.03 0.01 8.35 32.96

0.50 0.10 15.94 42.10

8.43 0.51 1.83 7.22 57.11 6.73 84.62 18.07 55.76 3.60 16.67 26.78 33.55 24.48 24.50 15.03 95.94 42.12 44.84 9.48 65.32 53.95 17.27 33.49 24.91 51.68 58.00 195.18 32.34 57.93 5.51 36.00 31.62 9.20 49.73 22.20 1.20 28.97 25.14 39.45 58.17 35.06 36.35 34.57 45.05 65.84 21.02 11.04 54.91 44.14 15.58 40.45 48.54 6.55 9.18 44.23 28.40 60.62 15.95 27.63 39.60 18.17 121.59 26.63 10.83 33.32 73.62 36.27 33.90 8.97 18.28

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

0.41 0.00 0.09 0.15 0.61 1.31 0.58 0.73 -1.03 -0.11 1.57 0.99 2.19 -0.87 1.77 0.56 2.19 1.78 0.30 0.01 2.39 3.01 -0.71 2.06 -0.09 0.61 1.20 4.10 1.06 1.41 0.27 0.83 0.23 -0.11 1.87 0.95 0.05 -0.07 -0.46 -0.85 1.57 0.52 1.01 1.57 0.48 1.93 -0.98 1.02 -0.17 1.52 0.58 2.60 -0.26 -0.26 0.71 0.11 2.35 0.26 -0.10 1.00 1.05 -2.24 4.20 -1.40 -0.32 0.03 1.54 1.62 0.74 0.05 0.40

7.97 0.20 1.48 4.92 50.95 5.30 65.35 16.97 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

14.29 3.97 4.96 10.10 62.80 9.94 85.44 28.53 59.59 5.60 21.16 38.40 34.00 28.79 33.88 15.68 97.76 42.70 48.69 12.25 72.46 67.20 19.35 51.86 30.49 54.28 62.00 210.69 34.77 62.33 5.72 46.49 36.07 13.12 56.66 24.83 1.81 31.90 32.29 41.80 62.83 42.17 40.45 38.16 48.31 66.80 43.18 12.19 56.92 46.40 23.16 41.13 85.90 14.32 10.05 46.08 32.79 62.18 18.87 34.24 39.93 25.84 123.78 58.29 14.51 34.10 75.24 38.24 34.80 9.60 22.81

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

AUGUST 3, 2012

INSIDE REAL ESTATE & CONSTRUCTION

‘Dramatic entry’ for Stein Mart, Hobby Lobby

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

TUCSON REAL ESTATE 7/16/2012

$140,100 4,091 306 411 235

$151,000 4,083 372 390 241

floor will be for inventory storage while the lower floor will hold retail space and administrative offices. The separate multi-tenant pad has tenants for two of its four spaces. The middle two stores have been leased by Mattress Firm and Vitamin Shoppe. The hope is that a restaurant will be attracted to one of the other spots.

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

Current

Mart and property owner Benenson Capital Partners, New York. Some of the local companies include Action Scaffolding, Allan Fire Protection, BW Plumbing, Babby-Henkel Building Specialties, Cornerstone Electrical, D&J Air Conditioning, Dar-Hill, Eagle Roofing, Liner Drywall, Mirage Plastering, Steel Management, Stonart, Tom White Carpentry, and WG Valenzuela Drywall. Mervyn’s vacated the store at in late 2008 after the California-based retailer failed to find a buyer to take it out of bankruptcy. The site was originally a Save-Co, a small California-based department store chain that was bought out by Zody’s that went bankrupt in 1986. Stein Mart is a high-end, off-price national retailer. It has one other store in Tucson, at 4881 N. Stone Ave. Headquartered in Oklahoma City, Hobby Lobby is a chain of arts and crafts store. This is its first store in the Tucson market. Mattress Firm and Vitamin Shoppe are both expected to open in early 2013.

Sales and leases

Workers install the sewer line trench that will serve the new free-standing retail pad.

7/23/2012

Source: Long Realty Research Center

O’Neil Construction’s Don Switzer shows the soil prep work for load-bearing pillars at the new front entrance.

Otis Blank

Stein Mart and Hobby Lobby are on track for a “dramatic entry” at the high-profile redevelopment of the northeast corner of East Broadway and Craycroft Road. In just two months since the site’s re-use plans were announced, the 81,000 squarefoot shell of the former Mervyn’s store has been gutted, environmentally cleaned, structurally and operationally renovated, and split into two spaces. Stein Mart is taking about 30,000 square feet on the building’s west side and Hobby Lobby is taking about 50,000 square feet on the east side. Separately, a new 14,500 square-foot, multi-tenant building also is rising fast that will front the roadways. “Full build-out of Stein Mart should be done by early November. They’d like to get in early to start racking shelves and merchandise for the holiday season. This side is under more of a time crunch than the other side,” said Don Switzer III, project manager for general contractor W.E. O’Neil Construction Company, 710 S. Campbell Ave. Hobby Lobby plans to open sometime in early 2013. The transformation of the building will feature a dramatic customer entrance on the south side facing Broadway. A glassedin vestibule will highlight tall parapets, new arches and stone work accents in a new façade. Several towering palm trees that once stood there have been salvaged. “You won’t see any of the old wall,” said Switzer. On the north side, crews are adding new loading docks and a freight conveyor up to the second floor for Stein Mart. The upper

Otis Blank

By Roger Yohem Inside Tucson Business

Last Week

7/31/2012

One 12 Month 12 Month Year Ago High Low

3.50% 3.75%APR 3.50% 3.75%APR 4.95% 3.00% 3.125%APR 3.00% 3.125% APR 4.22% 2.88% 3.125%APR 2.88% 3.125% APR

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.

4.95% 4.22%

3.50% 3.00%

“We are doing the frame out shell here, not tenant improvements. The architectural style of the small and big building will look the same, a nice touch,” said Switzer. Herschman Architects, 2210 E. Fort Lowell Road, was the project architect. O’Neil site superintendent Doug Kellet pointed out that many materials from the building and site were recycled. The “most obvious” were the store’s shelves for scrap metal. “The concrete was recycled to a crusher to be re-used for road base. A pulverizer crushed and grinded the asphalt as it went over the parking lot,” Kellet said. The asphalt grindings were piled on site and will be reused when the new parking lot is paved. “Recycling building waste is pretty standard procedure anymore,” he added. O’Neil hired as many local subcontractors as possible, Switzer said. They meshed with a set group of vendors used by Stein

• Ferguson Enterprises leased a 12,800 square-foot industrial building at 5455 S. Nogales Highway from Fluoresco LightingSign Maintenance. The transaction was handled by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services. • Nathan Martin Fireworks leased 8,550 square feet at 7885 E. Golf Links Road from Gin Lee Trust, represented by Greg Furrier and Jeff Zellet of Picor. • Freedom Smoke USA International leased 4,025 square feet at 4564-4570 E. Broadway in Midstar Plaza from from Midstar Partners LLC, represented by Nancy McClure, CBRE. The tenant was represented by Alan Tanner and Paul Schloss, CBRE. • Sonora Behavioral Health Hospital leased 3,880 square feet at 2001 W. Orange Grove Road in Desert Life Medical Plaza from Healthcare Trust of America, represented by Howard Schwiebert, Plaza Companies. The tenant was represented by Bruce Suppes, CBRE. • Hanley Wood LLC leased a 3,382 square-foot office building at 3275 W. Ina Road from Caldor Investments of Arizona. The tenant was represented by Russell Hall and Stephen Cohen of Picor. • Pita Jungle Oro Valley LLC leased 3,016 square feet at 7090 N. Oracle Road in La Toscana Village from JT La Toscana LLC, represented by Shannon Murphy, CBRE. The tenant was represented by David Long and Brian Johnson, Cor Realty Services, Phoenix.

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

20 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Avoiding cable news saves so much time I’m so glad my main sources for news are printed newspapers, the 5, 6 and 10 p.m. newscasts on network TV, occasional radio broadcasts and the online platforms of bona fide news organizations. It saves me so much time. Notice I left out the 24-hour cable news channels and their brain disengaged lip-flappers. Talk about a waste of time. DAVID HATFIELD I worry, though, that the mentality behind those channels may be creeping into the news sources I’ve come to trust. How else to explain investigative reporter Brian Ross on ABC News’ live coverage of the movie theater shootings in Aurora, Colo., last month when he blurted out, “There is a Jim Holmes of Aurora, Colorado, page on the Colorado Tea Party site as well, talking about him joining the tea party last year. Now, we don’t know if this is the same Jim Holmes”? Ross had been introduced by “Good Morning America” host George Stephanopoulos, saying he had something that “might be significant.” As we now know it wasn’t significant at all. The Jim Holmes who is in the Tea Party is a man in his 50s and the James Holmes who was said to have done the shootings was in his 20s. I didn’t see Ross’ blunder as it happened. As I said I try to avoid too much live continuous TV coverage of events. When I want breaking news I’ll try to find it online from bona fide news organizations. The question now arises, can I — can anyone — keep ABC News in the category of bona fide. Ross failed basic fact checking. I remember back on that horrible day Jan. 8, 2011, when a similar shooting in Tucson attracted live national TV coverage, including numerous reports saying Gabrielle Giffords had died. I also remember reporters at KOLD 13 telling me that News Director Michelle Germano insisted they not report that information unless it could verified from a knowledgeable source. KGUN 9 also held off on reporting the inaccurate information and something Forrest Carr, KGUN’s news director, said to me at the time has stuck with me. “We need to be the news organization people can turn to find out if rumors are true.” ABC News President Ben Sherwood told a meeting of TV critics that what Ross did “was an unfortunate mistake.” But at the same time he wants to stand by another ABC News reporter, Mark Mosk, who was insisting Arlene Holmes, the accused shooter’s mother, was referring to her son when she said “you have the right person,” indicating she may have known her son had issues. The family has insisted she was referring to herself. Brian Ross and Mark Mosk work for the same organization under the same circumstances. As viewers how can we believe either is accurate? And ABC spends good money trying to be a legitimate news operation. It’s astounding how much time I save in my life not watching or worrying about misinformation — and just plain drivel — that comes from the 24-hour TV news channels.

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

EDITORIAL

Anaheim could learn from Tucson Last week, Anaheim in California’s Orange County and home to Disneyland, erupted in violence. The catalyst was the fatal shooting of two young Hispanic men the previous weekend. According to reports, it was the result of years of festering ethnic and socioeconomic resentment. In essence the issues in Anaheim come down to the fact that while Hispanics now account for 53 percent of the city’s population, those numbers aren’t reflected in how they’re represented at city hall or on the police and fire departments. Whenever events such as these occur it’s worth an inward look to try determine if some of the same circumstances could manifest locally. The Tucson region also has a high percentage of Hispanic population, 41.6 percent inside the Tucson city limits, 78.5 percent in South Tucson and 34.6 across the entirety of Pima County, according to the 2010 Census. Contrary to what appears to be the situation in Anaheim, Hispanics in Tucson do have power. Consumer spending by Hispanics is a significant factor in the region’s economy. As far as representation is concerned, there is no question Hispanics have political power in Tucson — and have held power for a long time. There are those who argue Hispanic political power has become so significant that there are two distinct lines of political power; one geographically rooted in the politics of the south side and South Tucson and the other more or less based on Tucson’s west side. Nominally, the leaders of the two political power lines are Dan Eckstrom, former mayor of South Tucson, and U.S. Rep. Raúl Grijalva, D-Ariz. They sat beside each other for 13 years on the Pima County Board of Supervisors until Eckstrom retired in 2003 and Grijalva decided to run for Congress in 2002. Eckstrom and Grijalva have been replaced by

Ramón Valadez and Richard Elías, respectively. The two lines of political power have had their differences over the years, much of it having to do with the competition to secure the most for their constituents. It’s rare that someone has been able to cross the two lines. Tucson City Councilwoman Regina Romero being one of those rarities when she managed to receive the endorsements of both Eckstrom and Grijalva when she ran for re-election last year. In Anaheim, Alejandro Moreno, a member of Los Amigos of Orange County – the dominant Hispanic advocacy group in the region – and an activist for Hispanic causes in Orange County for 25 years, told reporters “the people here who hold the power, don’t want to let it go, and Latinos have finally had it.” At a meeting last week with Anaheim Mayor Tom Tait, Moreno said officials said the right things and were believable in their actions and motivations. “The mayor said he wanted relations between ethnic groups to be kinder,” says Moreno. “I raised my hand and asked him if he knew the Spanish word for that. He didn’t, nor did another city council woman. “I think their hearts are in the right place, but they just don’t know how.” With Richard Miranda as city manager and Roberto Villaseñor as chief of police, Tucson isn’t lacking for high-ranking Hispanics in official positions. Match that with the political muscle that exists and no Hispanic Tucsonan should ever feel that he or she isn’t represented.

InsideTucsonBusiness.com

AUGUST 3, 2012

OPINION BUSINESS INK

As Midwest drought drags on, using corn in gas is hard to swallow What happens when heat-stressed corn tassels pollinate poorly? The bitter answer may soon pop up at your grocery store. Bread: $5 a loaf? Milk: $6 a gallon? Eggs: $8 a dozen? As harvest time nears, there are fears that food inflation is in our future due to the devastating drought in the Midwest. Uncle Sam says about 40 percent of the nation’s corn crop is in jeopardy. The worst dry spell in decades has turned fields of bio-enhanced beauty into zones of natural disaster in 1,000 counties in 26 states. Corn prices are at new highs, having sprouted from about $5 a bushel in April to almost $8 a bushel now. It doesn’t take an agri-econ scientist to calculate the impact of higher corn prices on food prices for people. And livestock feed for pork, beef and poultry. And ethanol for gasoline. Ethanol? Can’t connect the kernels? This issue is a tangled “maize” of controversy. First off, ethanol is made mostly from corn. A 2005 Congressional energy bill requires all gasoline to be blended with ethanol. So during this epic drought, less land is available for growing food. I’m no ethanol ethicist but the federal government’s “fuelish” corn policy is problematic. It’s an old, complex, divisive debate.

There are bushels of pros and cons heard from all rows, including farmers, car manufacturers, environmentalists, foreign oil, tax breaks, big business, unintended conseROGER YOHEM quences, and food consumers. Since the 1980s, the feds have paid out over $20 billion in ethanol-related subsidies. The main tax credit, some $6 billion just last year, went to refineries to mix ethanol with gasoline. To their credit, Congress let the tax credit expire last December. Immediately, that cut $6 billion from the federal deficit. Not so smart was leaving the ethanol mandate in place, the law that diverts corn into car engines. Last year, 13 billion gallons of ethanol were mixed. This political mandate creates the market demand, not consumers. For farmers and “blenders,” the law has more value than the tax credits. By 2022, America’s Energy Independence Act of 2007 requires refiners to mix 36 billion

gallons of ethanol into gasoline. Clean-air environmental benefits aside, the fed’s corn-fuel policy is a taxpayer and consumer rip-off. At the pump, ethanol tanks and costs more money. With ethanol gas, MPGs (miles per gallon) crash. This fact is not in any scientific dispute. Officially, the U.S. Environmental Protection Agency puts the average MPG reduction at 2 to 3 percent in fuel economy. Unofficially, independent researchers have concluded that mileage losses could be double the government’s findings. From day one, whatever the numbers really are, Uncle Sam has acknowledged the sacrifice of MPGs. In the Tucson area, state law mandates a 5 percent ethanol blend from October through March. The objective is certainly worthy and politically correct: to reduce vehicle emissions and foreign oil imports. According to state statistics, Arizona motorists consume some 3 billion gallons of gasoline a year. At the low end of the 2 percent MPG-reduction equation, the ethanol edict causes drivers to burn an extra 60 million gallons of gas. The higher range equates to 90 million gallons wasted. Yes, the zeros are in the right place. Six-oh million gallons. Simply put, for every 50 fill-ups, one of

those tankfulls is the price you pay to Uncle Sam for this petro-program. And for environmentalists who can do the math, more trips to the gas station result in how many more tons of greenhouse gas emissions? This current corn crisis has highlighted the unintended consequences of an outdated public policy that also is poor environmental and economic policy. The drought presents an opportunity to consider ending the era of ethanol gas, especially since cars and trucks are much more fuel efficient and cleaner than 30 years ago. As the Midwest continues to bake, it’s in the best interests of all to pray for rain. End the drought before it slams us at the supermarket checkout. As we join the cornhuskers in a plea for rain, don’t overdo it. If our collective concerns bring too much rain too fast and too hard, a violent hail storm could permanently damage all those corn tassels struggling to pollinate. Corn’s priority is at the top of the food chain, not in the bottom of our fuel tanks.

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

SPEAKING OUT

An informed electorate is the goal of Speak Out Arizona Retired Supreme Court Justice Sandra Day O’Connor was in Tucson last month to inspire civility and civic engagement. Justice O’Connor told of how she and her husband had built a sun-dried adobe house using mud from the Salt River bed. When she was in the state Legislature, she would invite her colleagues from both political parties to her home for Mexican food. As they ate, they would listen to one another and discuss issues in a civil manner. They wanted to work together to move Arizona forward. When O’Connor was appointed to the U.S. Supreme Court, she had to sell the adobe house in Paradise Valley. A later owner wanted to tear the house down but public opinion prevailed. The house was spared and moved to Papago Park in Tempe. O’Connor suggested the house could be a place where “civil talk leads to civic action.” Thus the non-profit, nonpartisan “O’Connor House Project” was born. The latest O’Connor House project is “Speak Out Arizona.” It’s a civic engagement effort to get Arizonans registered and out to vote. Elva Coor is chairing the endeavor, and she has successfully fostered

state-wide collaboration among civic organizations. According to the Center for the Future of Arizona, a Gallup poll showed that Arizonans are not as well informed CAROL WEST on issues as people in other states. Arizona ranked 43rd in voter turnout in the 2008 Presidential election and 40th in the nation for voter registration. “Speak Out Arizona,” wants “the informed participation of all citizens. Without a fully informed electorate and greater voter participation in all elections — primary elections in particular — much needed policy changes are not likely to occur.” The long-term goal is “to transform Arizona into a top 10 state in informed voter participation in the 2016 Presidential election and to stimulate higher levels of civic participation in each Arizona community.” Major employers attending the O’Connor event in tucson shared some of their strategies for civic en-

BIZ FACTS

Learn more about the O’Connor house at www.oconnorhouse.org gagement in their workplaces. workplaces Tucson Electric Power president David Hutchens said voter registration forms are available in all new employee packets. Hutchens also said TEP has had forums for employees and their friends and families featuring county Board of Supervisors candidates. Mara Aspinall, president of Roche Group’s Ventana Medical Systems, said a voter registration booth is on its Oro Valley campus for the company’s 1,400 employees. “We can’t complain if we don’t vote,” she said. How can Arizona other businesses and organizations become involved? They can support the “Speak Out Arizona” project by requesting a copy of the initiative’s video and PowerPoint presentation to show at employee meetings. Businesses can schedule an official voter registrar to organize a registration

booth at their places of employment. Both Jim Click Automotive and Carondelet Healthcare have already done this. The Tucson Hispanic Chamber of Commerce is registering voters in neighborhoods. Voter registration can also be organized at company health fairs and summer picnics. Pima County and the City of Tucson held voter registration drives at their health benefits fairs, according to Tucson Medical Center Senior Vice President Linda Wojtowicz. Employee newsletters, intranet communications, and listservs can include voter registration information. Pima County citizens can register online at www.recorder.pima.gov/regvote.aspx . The Arizona Secretary of State’s office publishes a voter guide of the candidates and issues. It will come to registered voters by mail in the fall. Arizonans can contact the website at www.azsos. gov/election/Voter registration.htm

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

22 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Say ‘yes’ to the F-35 – the sound of freedom over Tucson In the days ahead, Tucson will have an unprecedented opportunity to bring substantial, lasting economic benefits to our community – an opportunity that would enable the people of the Tucson region to achieve the greater security, peace of mind, and prosperity we so desperately desire. As you may know, Tucson International Airport is being considered as the site to host the innovative new F-35 Lightning II international pilot training program. This honor would be an exceedingly welldeserved compliment to our commitment to community. At a time when families and businesses across the state and across the country are fighting to survive in the face of a challenging economy, having the training program would yield clear financial benefits and long-term economic vitality. The F-35 represents a significant step forward in our ability to keep America secure in the near term and long into the future. As a result of unprecedented technology and unparalleled flexibility, the F-35 will revolutionize the capabilities of the Western alliance fighter fleets. The Lightning’s advanced stealth capabilities and fully integrated sensor system will enable F-35 pilots to fly deep into hostile airspace undetected, engage, disrupt, and defeat those who threaten us,, and return home safely. y

Without question, the F-35 is a fundamental asset in our national security arsenal. The F-35 offers a powerful local impact as well. If the program came to Tucson, it SATISH HIREMATH would bring with it tremendous economic value. The increase in military personnel and their families and the continual flow of new visitors would put crucial dollars directly into our local economy. We would also reap the direct benefit of a modernized Tucson International Airport, which will be required if the site is selected to host the training. Imagine the real and tangible advantage – both to our economy and to our quality of life – these changes would bring to our community. Imagine the renewed prosperity, progress and potential. This program is also creating advancedtechnology aerospace careers that give American workers the training and skills they need to build a better future for themselves as they strengthen our economy and empower us to compete more effectively in the 21st Century global economy. Even

at its current low rate of production, the F-35 is already significantly enhancing the U.S. economy. With more than 1,350 suppliers in 45 states, the F-35 program is directly ED HONEA and indirectly supporting jobs for more than 133,000 people with a total economic impact of $17.7 billion this year alone. For Arizona, that includes more than 1,100 direct and indirect jobs and almost $92 million in total economic impact. True, some in our community are uneasy about the noise they believe would be created from the F-35’s powerful engine. We respect their concern, and we want to take this opportunity to address it. In 2008, The Joint Strike Fighter Program Office released study results that showed that the noise generated by the F-35 is about the same as the noise generated by today’s current fighter aircraft. These results were based on the most comprehensive set of acoustic data ever gathered on a military aircraft. To date, not a single noise complaint about the F-35 has been received at the bases from which the F-35 operates.

Yes, we said zero. In addition, the United States Air Force can mitigate the level of noise using various noise abatement procedures. In most cases, the F-35 will not require afterDUANE BLUMBERG burner takeoffs. It’s often said that it doesn’t take a rocket scientist to realize the benefits of rocket science. In this case, the F-35 program would bring high-tech, high paying, careers to Tucson and unleash a flood of economic activity. It would give us the privilege of hosting a program that will increase the effectiveness and safety of our men and women in uniform. Let’s join together to say “yes” to this opportunity as we work together to create the safer, more secure and prosperous future the people of Tucson deserve.

Dr. Satish I. Hiremath is mayor of Oro Valley, Ed Honea is mayor of Marana and Duane Blumberg is mayor of Sahuarita.

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AUGUST 3, 2012

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24 AUGUST 3, 2012

INSIDE TUCSON BUSINESS

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