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WATER WAR Marana sees control of wastewater as key to future PAGE 5

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • AUGUST 10, 2012 • VOL. 21, NO. 63 • $1

Special Report A mid-year look at Tucson’s commercial real estate market

Otis Blank

Page 13

Tucson Medical Center’s new West Pavilion, set to open next April.

Luke AFB officials already pushing for more F-35s By Meghan McCarthy Cronkite News Service Along with three squadrons — a total of 72 F-35 jet fighters — officials at and near Luke Air Force Base in Glendale are celebrating the millions of dollars in construction projects that will be coming its way and the potential of thousands of jobs. But that’s not all, even before the first three squadrons arrive as early as the end of next year, officials already are trying drum to up support for more of the fifthgeneration fighter jets as F-16s are retired. The Air Force calls the F-35 the “premier strike aircraft through the first half of the 21st century.”

The Pentagon’s announcement this month that Luke will be the initial pilot training facility means it won out over the Arizona Air National Guard’s 162nd Fighter Winter at Tucson International Airport and sites in New Mexico and Idaho. Tucson Mayor Jonathan Rothschild’s office acknowledged, “Luke has been the military’s preferred choice for the first 72 aircraft since 2010. It is our understanding that decisions on the next phase won’t happen until December 2014. At that time, we expect that Tucson will receive consideration as a secondary location.” The decision capped a nearly three-year process that included environmental impact studies on air quality, noise, land use

and socioeconomic issues on the locations in contention. Luke had been the “preferred location” for two years and the Pentagon, in a June environmental report, again called the base its top choice. The fighters are expected to arrive at Luke between late 2013 and mid-2014, the Air Force said, but construction on the base to prepare for them should start “almost immediately.” The mission is expected to bring an economic boost to the Phoenix area as the government invests up to $125 million on construction-related projects, according to Luke Forward, an organization that promotes the base. It said the F-35s arrival is estimated to create nearly 3,000 construction jobs.


2 AUGUST 10, 2012

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InsideTucsonBusiness.com

AUGUST 10, 2012

3

SPECIAL REPORT

Commercial real estate at mid-year

Apartment market is hot! By Roger Yohem Inside Tucson Business

Roger Yohem

This week, Inside Tucson Business takes its semi-annual review of the commercial real estate market in the Tucson region. In these articles on the retail, industrial, office and multi-family real estate markets, a growing number of industry experts are beginning to show some pent-up optimism, to coin a phrase, that commercial real estate will see marked improvement next year. All signs indicate the market is finally off the bottom and showing slight, slow, incremental increases. The mid-year update begins with a look at the multi-housing market on this page and continues starting on page 11.

Jan. 8, 2011 shooter will go to prison for life

BIZ FACTS

Retail Sector 2nd Quarter Update

• Vacancy rate So what if there’s a flurry of new 9% at 2012 1Q TThe long-vacant Vista Sierra Apartments, 2002 E. Ft. Lowell, are apartment construction? By De10.1% at 2012 2Q b being redeveloped as market-rate units by Town West Realty. cember, will it really matter that the TThe 78-unit complex, renamed Casa Presidio, is to open this year. vacancy rate rose from 9 percent in • Sales volume “Investor interest has picked up sighousing around h the first quarter to 10.1 percent at the 1st half 2012: $86.4 million tthe University of nificantly since 2011 as Tucson is back on mid-year point? All of 2011: $66.1 million Arizona campus. the radar screen. We are seeing out-ofA In recent months, the construction A 14-story state investors returning to the marketof flashy new state-of-the-art, ameni• Price per unit ccomplex at 1020 place and with investors coming from the 1st half 2012: $41,178 ty-rich, multi-family housing projects 2nd half 2011: $28,417 N. Tyndall Av- Phoenix area,” Mendelsberg said. “The N have been turning heads. 1st half 2011: $18,700 eenue is in the gap is narrowing between buyer and sell“Apartments are very hot. There’s works for just er expectations, and the low cost of debt w a shortage of certain-type inventory,” •Price per square foot under 600 stu- is making more transactions possible.” u said Allan Mendelsberg, investment 1st half 2012: $56.88 Going forward, all the stars seem to dents. Near d specialist with Picor Commercial Real 2nd half 2011: $41.32 ccampus, plans have aligned just right for the market. Estate Services. 1st half 2011: $29.61 ccall for a 198-bed Three major areas have been addressed: In anticipation of the rush, apartccomplex at 504 the glut of foreclosures; the shortage of ment developers bought over $8 million of land last year, according to Jim E. Ninth Street. Also in progress is The Re- student housing; and the need for highMarian, a partner in Chapman Lindsey treat at 22nd Street and Park Avenue, for 183 end luxury product. “Lots of families that were doubling up Commercial Real Estate. The largest deal students in cottage-style luxury units. Downtown at 350 E. Congress, student are starting to separate and we’re hearing was $4.15 million to develop The District on Fifth, 248 E. Fifth Street. The second-biggest housing for 300 is being planned by Oa- there is less packing of five and six people purchase was by HSL Properties for $3.8 sis Tucson. In anticipation of the modern in one-bedroom apartments. Multi-fammillion in Marana’s Dove Mountain for 272 streetcar, several other niche apartment ily is a very positive story in Tucson comprojects are in various stages of develop- mercial real estate,” said Mendelsberg. new units on 20 acres. The District on Fifth opens this month ment and planning. For existing properties, the volume of Contact reporter Roger Yohem at and all 750 beds were leased long before it was completed. By this time next year, a sales has spiked this year (see BizFacts). ryohem@azbiz.comor (520) 295-4254. surge of some 2,000 new units are projected And only three acquisitions were considand that will change the dynamics of student ered “distress sales.”

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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.

Jared Lee Loughner, 23, will spend the rest of his life in prison but avoided the death penalty, after pleading guilty to 19 counts against him for a shooting rampage that took place Jan. 8, 2011, at a northwest side shopping center in which six people were killed and 13 others, including thenRep. Gabrielle Giffords, were wounded. The plea agreement was entered in federal court Tuesday. Last year, Loughner had pleaded not guilty but since then he has been forcibly medicated by authorities for schizophrenia. In court, U.S. District Judge Larry Burns said Loughner was “a different person in his appearance and his affect than the first time I laid eyes on him.” The 19 counts included attempted assassination of a member of Congress, murder and attempted murder of federal employees, and causing death and injury at a federally provided activity. As part of the agreement, the federal government dropped 30 other counts. Loughner’s sentencing is scheduled for Nov. 15. He is ineligible for parole.

Open elections backers appeal to Supreme Court Supporters of an initiative to change Arizona elections to what’s called “open elections” or a “top two” primary system have gone to the state Supreme Court to try to overturn a lower court ruling this week that knocks their proposal off the November ballot. The Open Government Committee on Tuesday asked the state’s high court for expedited consideration. Justice John Pelander set today (Aug. 10) as the deadline for parties to file briefs and Tuesday as the deadline to file responses. The committee hopes the Supreme Court will overturn an injunction issued Monday by Maricopa County Superior Court Judge Mark Brain, who ruled the initiative violated the separate amendment rule in the Arizona Constitution. The proposal would have all candidates running for state-wide offices run on the same ballot in the primary, regardless of political party. The top two vote getters would then go on to the general election.

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

8 7 9 9 10 11 13

Lists Finance Real Estate & Construction Biz Buzz Editorial Classifieds

22-25 26 27 28 28 31


4 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

NEWS New D-M commander set to take over today Col. Kevin Blanchard is scheduled to assume command of Davis-Monthan Air Force Base in ceremonies set for 9 a.m. today (Aug. 10). Blanchard comes to Davis-Monthan and the 355th Fighter Wing from a one-year assignment as the vice commander of the 451st Air Expeditionary Wing at Kandahar Airfield, Afghanistan. He succeeds Col. John Cherrey who departed in June for an assignment at the Pentagon.

After falling for 17 weeks, Tucson gas prices bump up After 17 weeks of declines, gas prices in the Tucson region may have hit bottom and bounced up this week, according to AAA Arizona’s Fuel Gauge survey. The average price for regular fell to $3.15 per gallon early in the week but by mid-week was at $3.17½ per gallon, about a half-cent per gallon higher than where it was a week ago. As is usually the case, the Tucson average was the lowest in Arizona, where the state-wide average this week was $3.31 per gallon, up from $3.29 per gallon a week ago.

Licenses issued for marijuana dispensaries Using a bingo machine for its random drawing process, the Arizona Department of Health Services on Tuesday (Aug. 7) issued 97 licenses for medical marijuana dispensaries across the state, including 16 defined districts in the Tucson region. The drawing took four hours to select from among 404 applicants in 68 dispensary districts as established by voters in a law that was passed in November 2010. The remaining 29 licenses were issued in districts where there was only one applicant. The names of the winning applicants and their districts were not revealed by the Department of Health Services. Health Services Director Will Humble said some dispensaries could open within a few weeks but others could take until next spring to become operational. Also on Tuesday, state Attorney General Tom Horne issued a legal opinion saying that despite voter approval, the medical marijuana initiative is preempted in part by federal law. Horne said he would not try to stop the issuing of dispensary licenses. The licenses were issued by geographic districts. In the Tucson region, 10 applicants filed for Catalina; nine were filed for Central Tucson; eight for southwest Tucson, five for east central Tucson; four each for northeast Tucson, north central Tucson and Tanque Verde; three each for east Tucson and southeast Tucson; two for Continental; and one each for Marana and northwest Tucson. No applications were received for dispensaries in west Tucson, Green Valley or the San Xavier or Pascua Yaqui districts.

Airline survey shows where to go By David Hatfield Inside Tucson Business The gauntlet has been thrown down. According to an air travel survey of businesses in the Tucson region, the biggest opportunities are: • More airline service to the Los Angeles area via alternative airports, such as Orange County’s John Wayne Airport and, possibly others. • Additional flights to San Francisco. • Nonstop flights to Washington, D.C., and New York. Jamie Kogutek, an air service strategy and development consultant with Sixel Consulting Group hired by the Tucson Airport Authority (TAA), revealed the opportunities as part of his report Wednesday on the results of the survey conducted in June. It had 512 respondents representing 77,000 employees and more than 100,000 business trips annually. The results were revealed before about 75 business leaders at the Doubletree Hotel at Reid Park. Although it wasn’t a specific question in the survey, Kogutek said a significant number of respondents got more specific than just saying Los Angeles. He noted that according 2011 U.S. Department of Transportation data, 79 percent of passengers going to the Los Angeles Basin from Tucson International Airport go to LAX compared to 36 percent from Phoenix Sky Harbor International Airport. The second most popular destination is Orange County’s John Wayne Airport, which was used by 27 percent of

Businesses asked to step up Due to federal regulations, the Tucson Airport Authority is restricted in their efforts to entice airlines to improve air service at Tucson International Airport, although it has instituted an incentive program to reduce landing fees and help with marketing to any airline that commits to adding and maintaining new service targeted destinations for at least a year. A Business Roundtable has been established to work on other ideas that could induce airlines to add service. To be a part of that group, business leaders are asked to contact Michael Guymon, vice president of regional development at Tucson Regional Economic Opportunities, at michael.guymon@treoaz.org. Phoenix passengers but just 10 percent of Tucson passengers. “That’s obviously a function of the fact LAX is the only airport served non-stop from Tucson and there aren’t a lot of places along the way to make connections,” Kogutek said. But he cautioned the audience that if an airline should begin service to Orange County it will need the support of Tucsonans and that may be difficult. “They may start with just one flight a day and the times may not be conducive to making a day-trip,” he said, adding that passengers tend

to be more flexible on cross-country travel to Washington or New York. And while business travelers rank Washington and New York as high-priority destinations, the two destinations don’t rank as high among all air travelers. That puts a greater onus on businesses to support those nonstop flights if they were to materialize, Kogutek said. It turns out passenger relationships with airlines — frequent flier programs and such — plays a factor in getting to the San Francisco area. Although United Airlines is the only airline offering non-stop flights to San Francisco as well as connecting flights to other Bay Area airports, more Tucson business travelers choose to fly on either American or Southwest airlines. Kogutek said United remains the most likely airline to improve air service to San Francisco, partly because it has a hub there. The challenge for Tucson will be making it more successful flying the route. According to the survey, 63 percent of businesses do not have a policy requiring booking the lowest airfare and that 79 percent of businesses consider the entire cost of travel, including gasoline, parking and time away from work, in booking air travel. Despite this, the cost of travel and airfares ranked as the top reason given for a company’s choice for air travel. Contact reproter David Hatfield at dhatfield@azbiz.com or (520) 295-4237.

Business Travelers Need Nationwide Access


InsideTucsonBusiness.com

AUGUST 10, 2012

5

NEWS

Water wars: Marana’s future lies in control over sewer system

This Week’s

By Patrick McNamara Inside Tucson Business

Prospective employers have a new way to connect online with Pima Community College students. It’s called MyCareerLink and can be accessed through the MyPima protal at www.pima.edu. Through it employers can list information accessible to Pima College students for dozens of opportunities, ranging from Application Developer to X-ray Technician. At the same time, students can upload and store their résumés, cover letters and other documents. Employers can find more information about MyCareerLink at Pima College’s Student Recruitment and Internships webpage, www.pima.edu/business-industry/recruitment-internships/index.html.

Connect jobs with Pima students

The Tucson

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

A matter of attitude

Patrick McNamara

At first glance, the hard-fought battle between Marana and Pima County for lasting control over an obscure wastewater treatment facility appears absurd: Two governments fighting over sewerage. But underneath the fetid surface lies, for one of the litigants, the potential to solidify or dash its designs for growth and future prosperity. “Water resources drive our ability to attract businesses and people to live here,” said Marana Town Manager Gilbert Davidson. “We have a large number of areas we want to see developed (through) managed growth, and to do that we need water.” Marana, population 35,000, has been locked in legal battle with the county for control of the small wastewater treatment facility at 14393 N. Luckett Road since 2007. The plant has modest capacity to treat 700,000 gallons per day but without control of the facility, Marana has limited options to secure an assured water supply. The Arizona Department of Water Resources requires that any new development in the five active management areas — those within the urban corridor of Maricopa, Pinal, Pima and Santa Cruz counties — secure a 100-year supply of water to support the population. If that assured supply isn’t available, developers can’t sell lots to be developed. A key to achieving an assured water supply lies in effluent. “By controlling effluent, Marana can expand its water supply,” said Robert Glennon, Morris K. Udall professor of law and public policy in the Rogers College of Law at the University of Arizona. Glennon also has written numerous articles and books on water policy, including “Unquenchable: America’s Water Crisis and What to do About it,” in 2011. By using effluent, or treated wastewater, water providers can offset their groundwater pumping. In a quest for an effluent supply, Marana sought, and tentatively has achieved, its goal of guaranteeing future water supplies by wresting control of the treatment facility from Pima County. But the town’s ownership of the facility faces an uncertain future as the continuing court battle has shown. Despite exercising its right under state law to acquire ownership of the plant, the courts have now said Marana does not have the right to operate a wastewater treatment system. The town could go to its voters and ask them to approve its plans to become a

Good News

A worker on contract from the Arizona Department of Corrections cleans scum from the water’s surface at the Marana’s wastewater treatment facility.

wastewater service provider. In the meantime, however, the Arizona Department of Environmental Quality decided not to transfer the requisite permits Marana needs to operate the treatment facility. Instead, the town operates the 1,800-connection facility on a provisional basis. If Marana can’t get support of the residents, it could find itself back at square one in terms of securing its fresh water supply. A few options remain, however. “Even a municipality without a CAP (Central Arizona Project) allotment can grow by joining the Central Arizona Groundwater Replenishment District,” said Chris Avery, chief water council with the Tucson City Attorney’s Office.

The Central Arizona Groundwater Replenishment District (CAGRD) replenishes groundwater reservoirs with CAP water. Members, which includes water providers, housing developments and local governments, earn credits for their groundwater usage. That’s an option that Pima County Administrator said Marana needs to further explore. “They could completely solve all their future growth issues by making new growth become members of CAGRD,” Huckelberry said. Davidson said that’s not a fail-safe for the town. “We can use that as a backstop,” Davidson

WATER PAGE 6

It all makes sense now for one small business owner along East Broadway near Swan Road who recalls getting an indignant phone call from a Tucson city official earlier this year notifying him that the city wasn’t getting their share of his sales tax receipts. After spending time huddling with his accountants they figured out the business was paying the proper amount. It turns out, though, the business wasn’t coding his filings to include money that should have gone to the Rio Nuevo tax increment financing district. The businessman tells insider that at first the city official tried to put the onus on him but he fought back, telling the city, “If you’re not getting your share of money from the state, that’s you’re problem with the state, not me.” The city official relented but asked the accountant to start putting the proper code on the forms. A problem that might have been avoided in the first place had the business owner been told about the code in 2004 when he opened.

Twitter password, please Social media continues to test the bounds of employee-employer matters. As part of what they do at the Arizona Daily Star, reporters tweet about items they’re covering and sometimes other matters. But are those reporters’ Twitter accounts personal or business? The Star thinks they’re business. Specifically their business. About two dozen reporters have received emails requesting they turn over their Twitter account passwords. It must be so their writing can be properly edited for grammatical errors.


6 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

NEWS PUBLIC NOTICES

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

WATER | CONTINUED FROM PAGE 5

Ascent Aviation Services Corp. against Vision Asset Company LLC and Wells Fargo Bank Northwest. Amount owed: $8,322.75. Ascent Aviation Services Corp. against Vision Airlines Inc. Amount owed: $220,504.94.

said. But the option also poses problems because water through the CAGRD has a higher cost than groundwater or CAP water. Additionally, the price per acre-foot of water isn’t set, and likely will continue to rise. Davidson said the town through its membership in the district pays $474 per acre-foot but anticipates the cost will rise to more than $600 per acre-foot in five years time. An acre-foot equates to the annual water usage of a four-person household, about 326,000 gallons. Plus, the supply of that water is subject to flows of the Colorado River, which has claims on it not only from the CAP in Arizona but from Nevada and Southern California as well. “That’s not a guaranteed supply,” Davidson said, noting that the town has slated the northern areas of the town for thousands of residential units and much commercial development. That leaves effluent as the town’s best option for future growth and guaranteed water supplies. Pima County, which until January operated the Marana wastewater facility, has said it’s happy to provide the town with up to 90 percent of the effluent the facility produces. “Apparently, that wasn’t good enough for them,” said Pima County Administrator Chuck Huckelberry. Dating to at least 2004, the county has offered effluent to Marana on the condition that it be used for irrigation at parks and other public spaces that currently use groundwater. According to Huckelberry, that option would be more cost effective to Marana residents as well. He said the town would have gotten about 256 acre-feet of effluent per year without cost, instead of paying $2 million annually to operate a facility that produces the effluent.

Release of federal liens Chapter 11 Business reorganization Next Level FP LLC, 2809 Northridge St., Sierra Vista. Principal: Thomas Roar. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $500,000 to $1 million. Largest creditor(s): Schedule not filed. Case No. 12-17086 filed July 31 (Case dismissed Aug. 2 due to lack of legal representation). Law firm: Pro se Ventana 20/20 LP, 5800 N. Kolb Road. Principal: John Murphy, manager. Estimated assets: More than $10 million to $50 million. Estimated liabilities: More than $10 million to $50 million. Largest creditor(s): Schedule not filed. Case No. 12-17493 filed Aug. 3. Law firm: Mesch Clark & Rothschild

FORECLOSURE NOTICES Collings Construction Co. LLC 12320 N. Durham Wash Drive, Marana 85658 Tax parcel: 219-36-0840 Original Principal: $260,250.00 Beneficiary: Washington Federal Savings, Oro Valley Auction time and date: 10 a.m. Nov. 6, 2012 Trustee: Craig H. Kaufman, Quarles & Brady, 1 S. Church Ave., Suite 1700 Collings Construction Co. LLC 12370 N. Faraway Wash Trail, Marana 85658 Tax parcel: 219-36-0840 Original Principal: $237,750.00 Beneficiary: Washington Federal Savings, Oro Valley Auction time and date: 10:30 a.m. Nov. 6, 2012 Trustee: Craig H. Kaufman, Quarles & Brady, 1 S. Church Ave., Suite 1700

LIENS Federal tax liens AWOL Industrial Supply LLC, 6420 E. Broadway A200. Amount owed: $10,656.28. Schoen Estate Inc., 6241 N. Panorama Drive. Amounts owed: $126,357.51; $80,680.14; and $1,689.99. Michael Richard Griffith LLC, 7017 E. Strike Eagle Way. Amounts owed: $108,114.91 and $62,264.48. Precision Alignment & Brake and Griffith Group LLC, 1400 S. Alvernon Way. Amount owed: $42.292.90. Kyosushi Chinese Combo & Vietnamese and Ung Vo, 9040 E. Valencia Road. Amount owed: $2,716.21. Taqueria Juanitos and Juan Suazo, 708 W. Grant Road. Amount owed: $2,132.37. Carson Concrete & Decking Inc., 3475 N. Dodge Blvd. Amount owed: $12,253.89.

State liens (Liens of $1,000 or more filed by the Arizona Department of Revenue or Arizona Department of Economic Security.) RCG Enterprises and Robert C. Gutierrez and Rose Marie Gutierrez, 2240 N. Via De Suenos. Amount owed: $13,326.14. Zachary’s Classic Pan Pizza and David C. Ellis, 1028 E. Sixth St. Amount owed: $71,842.36.

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

Ascent Aviation Services Corp. against Falcon Air. Amount owed: $189,120.48.

W Boutique LLC, 4340 N. Campbell Ave., Suite 185 Yokohama Rice Bowl and Andrew J. Weber, 5402 E. Speedway Gateway West Realty Inc., 2151 W. Felicia Place Motto Productions Inc., 135 W. Council St. Loft Cinema Inc., 3233 E. Speedway Continental Ranch Family Practice PC LLC, 8275 N. Silverbell Road, Suite 113, Marana Party Carousel LLC, 903 N. Swan Road Jani King, A&R Professional Services LP and Art Kingman and Richard Salazan, PO Box 12094, 85732 Planet Hair Care Inc., 8327 Rose Marie Lane Western International Aviation Inc., 5951 S. Wilmot Road Massengale & Associates Consulting Inc., PO Box 30722, 85751 Raymond S. Sardina Distribution Inc., 1892 W. Merlin Road Acoma Animal Clinic Inc., 1000 E. Butler Ave., Suite 101, Flagstaff AAA Pool Service of Tucson Inc., 4039 S. Escalante Place Head East & Head West and MRN Ltd., PO Box 17009, 85731 Rick’s Pest Control LLC and Richard R. Woodard, 1870 N. Curvo Pasto, Green Valley Tohono O’odham Community Action, PO Box 1790, Sells 85634 Strategic Space Development Inc., 9121 E. Tanque Verde Road, Suite 105 Radius Architects LLC and Robert Castle Gay, 8220 N. Rancho Catalina Ave., Oro Valley Rumsey Architecture LLC, 3541 S. Calexico Ave. Rafael Tovar Roofing Inc., 134 E. 25th St. Arizona Small Animal Clinic and Cleo Corp., 10 E. 31st St., South Tucson

Release of state liens Fuku Sushi & Teppan LLC, 845 E. University Blvd. #175 Industrial Pavement Maintenance, 637 N. Catalina Ave. Trajen Flight Support LP, 3131 Briarcrest Drive, Suite 100, Bryan, Texas AZ Pollution Control and Christopher S. Bond, 1322 N. First Ave. Perfection Automotive and Greg Blainer, 3616 N. Forgeus Ave. Green Valley Auto Service Inc., 261 W. Calle De Las Tiendas, Green Valley Parker Consulting LLC, 4500 E. Speedway, Suite 16

Release of mechanic’s liens Cactus Rose Construction Inc. against City South Plaza LLC and La Curacao ATS Electric Inc. against Vratsinas Construction Company, City South Plaza LLC, Volk Company and La Curacao Majestic Drywall LLC against City South Plaza LLC, La Curacao and Vratsinas Construction Company California Wholesale Material Supply Inc. and Desert Building Materials/Tucson Branch against City South Plaza LLC and Majestic Drywall LLC City Electric Supply against Parkway Construction & Associates LP Kelley Bros. Arizona against QIP Tucson Office I LLC Benson Security Systems Inc. against Valencia I-19 Investments LLC and Southgate Academy Southwest Hazard Control against Wetmore Plaza LLC Ascent Aviation Services Corp. against North Shore Aricraft LLC and Wells Fargo Bank Ascent Aviation Services Corp. against Falcon Air

Contact reporter Patrick McNamara at pmcnamra@azbiz.com or (520) 2954259.

Patrick McNamara

BANKRUPTCIES

“They’re not legitimate offers,” Davidson counters. “They can’t give an infinite agreement, the agreements can be cancelled.” Davidson said such an agreement would leave Marana at risk of not having a guaranteed water supply and put the town at the future whims of county leadership. He and other town leaders have in the past claimed the county has thwarted Marana’s growth plans through sophisticated bureaucratic machinations. For instance, Davidson told an Arizona Senate committee in 2011 that Pima County refused to connect a proposed hospital in Marana to the regional wastewater system. Huckelberry denies that, saying the developer of the proposal chose not to construct the pipeline connecting to the main sewer lines and abandoned the plans. “We have never turned down a single permit for construction in Marana that was ready to connect to the treatment plant,” Huckelberry said. Huckelberry also said the cost to Marana residents for wastewater service would increase under a town-run system because they won’t have the economies of scale that exists for the county. County estimates show Marana residents would pay $95 per month compared to $37.50 that county ratepayers pay. Such disputes aside, Marana almost certainly has to acquire additional water by some means. Davidson said the town intends to continue to pursue the wastewater option to secure the town’s water and growth futures. “If we want to attract good residential and good commercial development, we have to be serious about the cost of utilities,” he said. “The cost today to get into the wastewater business seems high, but compared to CAGRD, it’s a drop in the bucket.”

A pipeline delivers water to the final treatment stage before it’s discharged into the wash at Marana’s wastewater treatment facility. The town wants the treated water to offset groundwater pumping and facilitate future growth.


InsideTucsonBusiness.com

AUGUST 10, 2012

7

SMALL BUSINESS

New project helps employers talk to employees about election There is no doubt that election season is in full swing. It’s hard to ignore the political signs lining our roadways, television commercials and our mailboxes filled with full-color, glossy pieces. If nothing else, keep in mind that many small businesses and advertising sales representatives benefit from this activity, and our local economy enjoys a temporary boost. But so much coming at us all at once can also be overwhelming. Especially here in the Tucson region where we have Tucson city wards, county districts, state legislative districts and school districts. It can be enough to discourage people from voting or even worse, being an uninformed voter. I believe the average voter wants to do the right thing and not waste a vote. I also believe that now, more now than ever, the average voter considers how hers or his vote will impact an employer or clients. Job security is no longer undervalued or an afterthought, it’s a real concern for American workers who understand that elections have consequences. This is a positive because it encourages voters to find a balance between their personal beliefs and what’s in the best interests of their employer. With so much information competing for

our attention, much of it partisan, where is a person to go for unbiased and factual information? Arizona workers and employers now have a new JERRY BUSTAMANTE resource, the recently launched Arizona Prosperity Project. The Prosperity Project is a national, grassroots program that provides employers with straightforward, non-partisan information for their employees on issues and candidates at the state and federal level. When workers are informed and active in government and elections, our families, our communities and our state will benefit. That is a fundamental belief of the Prosperity Project. The program is independently managed by local organizations that understand the needs of their state’s business interests and the program is currently in 40 states. The Arizona Prosperity Project will not tell people how to vote, but it will empower voters and

help them better understand the most important issues facing Arizona businesses. The Arizona Small Business Association (ASBA) is pleased to be among the first organizations, along with the Arizona Chamber of Commerce and Industry and a handful of others, to take the lead in bringing the Prosperity Project to Arizona. The Arizona Prosperity Project has been launched at an ideal time and is focused on providing election resources such as voter registration and polling place finder, zip code search displaying candidates running in your district, and the voting records of incumbent state legislators on business-friendly legislation. Another fundamental belief of the Prosperity Project is that America works best when its citizens cast informed votes. Given the impact elections have on the bottom line of every business, voters should not make decision based on attack ads and limited information. Narrowly focused interest groups are making great use of social media and other technology to spread their messages to voters. They rarely address how an election will impact competitiveness, job security and future prosperity. The Arizona Prosperity Project gives

employers tools to help their employees be better informed voters, while respecting their individual beliefs and their right to choose. Research has shown that employers are viewed by their employees as a credible source of election information and they welcome their feedback. I invite you to visit the Arizona Prosperity Project — www.azprosperity.org — to learn more about the top issues facing Arizona businesses and explore the available resources. I also encourage you to begin the political dialogue with your staff. It’s important that everyone keep an open mind and all positions are respected. Designate a fixed amount of time for this discussion and remember that it’s OK to discuss business issues in a business environment. We’re not talking religion here. Finally, help you employees learn how to find their elected officials and candidates running for public office and encourage them to be informed voters.

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

PEOPLE IN ACTION

NICOLA RICHMOND

APPOINTMENTS Judith H. DiMarco, PhD, has been appointed associate dean of administrative affairs and chief of staff for the University of Arizona College of Medicine – Tucson. Prior to joining the UA College of Medicine, DiMarco served as administrator for a University of Texas Medical Branch (UTMB) School of Medicine Administrative Services Group. DiMarco earned a bachelor’s degree in psychology and sociology from Alma College, Alma, Mich.; a master’s degree in community

psychology from Long Island University, Greenvale, N.Y., and a doctorate in population health sciences/epidemiology from UTMB in Galveston.

doctorate in geophysics from University College London and a bachelor’s of science degree in geophysics from the University of Southampton in England.

PROMOTIONS

Aviar Commercial Space Planning & Design has promoted Lullen Pajor to an interior designer. Pajor is now a full time commercial interior designer. Pajor graduated from the Southwest University of Visual Arts in Tucson. She has five years of design assistant experience.

Nicola C. Richmond, executive director of planning and institutional research at Pima Community College, has been named dean of business, occupational and professional programs at PCC’s Downtown Campus. Richmond has worked at PCC since January 2008. Richmond has a

LULLEN PAJOR

THOMAS PALUDA

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print. ELECTIONS Handi-Dogs, a local non-profit with a mission to help seniors and people with disabilities, has elected the following people to its board of directors: Luba Chliwniak, Ph.D., president of Pima Community College - Downtown Campus; Dr.

Curtis Mack, physician with Arizona Oncology; Adina Wingate, director of marketing at Pima Council on Aging; Jane Klipp, educational consultant. The Foothills Club of Tucson, a non-profit, charitable organization, has selected its board

CHRIS GORDON

of directors for 201213. The newly elected board of directors are: President - Marc Bleaman, Bleaman Law Firm, P.C.; Vice President - George Couston, Clarke Custom Homes; Secretary/Treasurer - Justin Martinez, National Bank of Arizona; Information Officer - Ed Alexander, KVOI/KCEE Radio; Membership Chair - Kim Kennedy, Richard Kennedy, CPA; Networking Chair - Tony Williams, Williams Technical Services; Giving Chair - Chrissy Frey, Frey Financial; Social Chair - Ed Lochhead,

Roadrunner Auto Glass/ Tinting; Valentines Chair – Sandra Swanson; Golf Chair - Gary Oschmann, Oschmann Employee Screening Services; Member-AtLarge - Carol Cristiani, Aqua Chill of Tucson; Member-At-Large - Keith Cooper, Alphagraphics.

NEW HIRES Moore Financial Strategies, has hired Thomas Paluda. Paluda has a background in insurance and

financial services. CREST Insurance Group has hired Chris Gordon as an employee benefits and insurance consultant. Gordon has more than 13 years of experience in the employee benefits and insurance field. His areas of expertise are in traditional employer benefits, alternate funding strategies, health care reform compliance and providing a full service brokerage experience to clients of all sizes. He has a degree in sociology from Northern Arizona University.


8 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

TOURISM

GOOD BUSINESS PR CORNER

TOURISM IN TUCSON

Tucson’s ‘the Real Southwest’ Two-way communication connects with new Brand USA with a ‘village’ achieves success With more than 9 in 10 U.S. registered voters saying in a recent USA Today/Gallup poll that the economy is extremely or very important to their vote in this year’s presidential election, “The economy, stupid quip,” is as relevant today as it was 20 years ago. The Obama Administration says its No. 1 priority is strengthening the economy and putting more Americans to work. Although the U.S. economy is growing at a 2 percent rate, most economists say it’s not enough to make a noticeable difference in unemployment. But there is a silver lining trending in one sector: Tourism. According to the U.S. Travel Association, the tourism industry is creating jobs 26 percent faster than other industries. And with 29 consecutive months of growth in travel-related expenditures, the U.S. Commerce Department says 2012 will be a record-breaking year. Global travel spending is expected to double to $2.1 trillion by 2020, but competition for this market share is fierce. Unlike neighboring countries Canada and Mexico, which spend $91.9 million and $173.8 million respectively on unified tourism branding and promotion, the United States has not, until the passage of the Travel Promotion Act in 2010, engaged the industry or invested in this lucrative sector. That is, our country has relied solely on state tourism offices and CVBs (convention and visitors bureaus) such as the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), to lure travelers from their international target markets to experience a slice of Americana – or in our case, a taste of the Real Southwest. While destinations across the country welcomed an impressive 60 million international travelers in 2010, truth be told, the U.S. world market share had actually nose-dived in the last decade as countries including the United Kingdom, Canada and Mexico – with established, recognizable brands – were outspending the U.S. significantly, thus making greater gains in market share and returns on investment. Because of the successful lobbying of the president and Congress on the part of a unified travel industry, the administration is seeing the power of tourism. In January, President Obama announced the creation of a national travel and tourism strategy to grow the U.S. economy. For the first time in our nation’s history, we now have an established corporation for travel promotion, known as “Brand USA” — www. thebrandusa.com . With an annual budget of $200 million. Brand USA’s mission is to increase international visitation to the United States and grow global market share,

which will in turn strengthen our economy and job growth, while maximizing the marketing efforts for destinations and travel brands, like ours, across the country. ALLISON COOPER Through research and an elaborate branding effort, Brand USA has developed a global brand that’s welcoming, unexpected and inclusive – and one that celebrates the idea “there’s no one thing that defines the U.S. but that each visitor and each experience helps create the fabric of our American culture.” Positioned as “The United States of Awesome Possibilities,” the brand comes to life in four experiential pillars – Great Outdoors, Urban Excitement, Indulgence, and Culture. You can see examples at www.DiscoverAmerica.com. As part of a globally coordinated marketing effort, the campaign launch “Land of Dreams” is currently being tested in Canada, Japan and the U.K. Before the end of the year additional markets will be added, including Mexico, France and Germany. With the exception of Japan, the MTCVB allocates resources to reach key audiences in these feeder markets. The lion’s share of our international budget is spent marketing to the Mexican visitor as they pump nearly $1 billion annually into Tucson’s economy. Also significantly important to Tucson are Canadian travelers, who spend nearly $800 million annually and account for over half of all international spending in Arizona. The MTCVB has entered into a partnership with Brand USA, which will extend our international market reach by 30 percent. This added exposure will increase brand awareness for the Real Southwest campaign, which emphasizes Tucson’s rich cultural heritage and plays off our region’s spectacular climate and immense natural assets, all of which aligns with Brand USA’s experiential pillars. The economic impact of tourism promotion is clear and compelling. It increases visitation, generates greater tax revenues that lessen the burden on local taxpayers and creates jobs. See how tourism impacts Tucson’s economy at www.visittucson.org/tourismpays .

Contact Allison Cooper, director of Marketing at the Metropolitan Tucson Convention and Visitors Bureau, at acooper@visittucson.org . This monthly column is prepared by the MTCVB.

When I meet with various stakeholders in the community regarding air service, I often tell them, “It takes a village to raise an airline.” Sometimes, however, the “village” isn’t fully aware of just how much benefit and positive change it can create by pooling efforts toward a common goal; thus creating the perfect opportunity for implementation of a comprehensive community outreach program. Just over a year ago, Tucson Airport Authority (TAA) embarked on the Working Together initiative, our community outreach effort to bring together and work with the community at all levels to achieve common goals with respect to air service. TAA recognizes the role of air service in economic development, generation of high quality jobs and overall quality of life, and we know it’s important to work with our stakeholders and customers who are vested in the success of TAA’s two airports — Tucson International Airport and Ryan Airfield. For this program, we first identified the various stakeholder groups who rely on the airports for their business needs. We then developed a set of questions based on the subjects we wanted to cover with them and scheduled meetings with key staff members who would have the best knowledge of those topics. For example, in the lodging industry, we met with the general managers and sales teams of our region’s major resorts to identify where they are gaining or losing market share, how air service at Tucson International Airport plays a role in their ability to gain business, and what information we could provide to help their sales teams be more successful. This allowed us to identify target destinations that we could then use to quantify travel demand. The Working Together initiative has allowed us to connect with our customers and stakeholders in a more personal and direct way to better understand how air service affects their bottom line. From lodging to biotech, we have discovered new opportunities to share information, market amenities, gather data and develop ideas that will make Tucson more attractive in the eyes of the airlines. The results of this community outreach program have far exceeded our expectations. Through personal engagement, we have created avenues for new sources of information that is critical to our air service development efforts that we could never have developed on our own. We’ve better informed business leaders at all levels on how they can help the

airport retain and grow air service in the region. We’ve engaged our customers in all sectors to help support air service development through privatesector investment, bringing Tucson MARY DAVIS more in line with what other comparable cities are doing to attract new routes. We also were able to discover the tremendous pride that our community has in its airport, and that is probably one of the most important pieces of information of all. This level of community outreach is often an overlooked tactic that businesses large and small don’t fully utilize in their public relations efforts. This frequently stems from a fear of what organizations will hear when they “put themselves out there.” The reality is that the conversation — good or bad — is happening without you, and your customers are just waiting to be asked and would welcome the opportunity to engage with you. The discoveries — positive and negative — can be nothing but valuable in helping your organization improve its level of service or product delivery. When it comes to achieving success, this customer connection can make or break your bottom line. While social media and other tactics allow for an ongoing dialogue with customers, there’s nothing like talking to a real person. You can ensure your messages are being delivered — and heard — while at the same time gathering feedback essential for improving your efforts. Whether it’s speaking to a local group, or just sitting down one-on-one with your customers, the time will be well spent. Success, no matter how you define it for your organization, can’t be achieved alone.

Contact Mary Davis, senior director of Business Development and Marketing for the Tucson Airport Authority, at mdavis@ tucsonairport.org. Davis also serves as Southern Arizona chapter delegate to the Public Relations Society of America, whose members produce this monthly column.


InsideTucsonBusiness.com

AUGUST 10, 2012

9

OUT OF THE OFFICE ARTS & CULTURE

MEALS & ENTERTAINMENT

Tucson’s film industry to be Salsa and tequila challenges return to La Encantada Aug. 25 subject of town hall meeting The Southern Arizona Arts and Cultural Alliance (SAACA) is teaming again this year with La Encantada for the 2012 Salsa and Tequila Challenges Aug. 25. The festivities start with a Salsa Challenge at 5 p.m. that feature live mariachis, dance lessons, children’s activities and samplings of about 30 salsas coming from both professionals and amateurs. Fifteen restaurants are participating in the professional salsa competition. Last year, the judges’ championship award went to The Grill at Hacienda del Sol and the peoples choice award went to co-owned Jax Kitchen and The Abbey. The Tequila Challenge begins at 6 p.m. and will feature flamenco dancers, fusion Latin music, food and tequila pairings from a dozen plus restaurants. In addition to being able to sample a variety of tequilas straight up, participating restaurants will be concocting tequila based cocktails – no margaritas, however. Tickets to both salsa and tequila changes are $70 or $20 for just the salsa challenge. Buy them online through SAACA’s website http://saaca.org/ (click on “events”). Proceeds from the event benefit the Tucson Community Food Bank and SAACA.

Sprucing up RA RA Sushi has been busy this summer adding items to its dinner and beverage menus. There is a lot of variety on the new menu, including items such as a creamy edamame and spinach dip served with warm wonton chips, mussels steamed in sake, soy sauce and garic, salmon and green beans drizzled with a spicy yuzu sauce and their new crispy Asian tacos in which crispy rice paper shells are filled

MICHAEL LURIA

with your choice of chicken, crispy white fish, spicy tuna or shrimp. Additions the cocktail menu include a “strawberry saketini,” “coconut moshi” and a cucumber collins. All are great cool down

drinks after a hot day. The menus aren’t all that’s new at RA. The restaurant, including the entryway, bathrooms and the dining room, have also been remodeled. New tables and chairs are due to arrive. • RA Sushi, 2905 E. Skyline Road in La Encantada — http://rasushi.com/ — (520) 615-3970

Fried chicken Sunday If your taste buds are craving comfort food, then Downtown Kitchen + Cocktails’ “Sunday Comfort” Fried Chicken might fit the bill. First the chicken is brined, then lightly roasted, dipped in a buttermilk bater and fried. It’s served with macaroni and cheese that’s been cooked with andouille sausage and bacon and southern style green beens. That’s all kinds of goodness on a plate for $17. • Downtown Kitchen + Cocktails, 135 S. Sixth Ave. — http://downtownkitchen. com/ — (520) 623-7700

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

The future of Southern Arizona’s film industry will be the topic of a town hall and panel discussion next Thursday (Aug. 16) evening in the auditorium of the Center for Creative Photography, 1030 N. Olive Road near the southeast corner of East Speedway and Park Avenue on the University of Arizona campus. Among those participating are Tucson Film Office Director Shelli Hall, Tucson City Councilman Steve Kozachik and industry professionals. The discussion will be moderated by Harry Tate, former director of the Arizona State Film Office. Doors open at 6 p.m. and the discussion begins at 7 p.m. Seating is limited so interested attendees are asked to make reservations through the Tucson Film Office by calling (520) 770-2151.

Music The 1980s British group Duran Duran, part of the so-called second British invasion who took their name from the cult film “Barbarella,” will perform at 8 p.m. Sunday at AVA Amphiteater at Casino Del Sol, 5655 W. Valencia Road.

Art “Funny and Fine” is the name of a group show featuring works of five Tucson artists that will hold its opening reception from 2-4.p.m Sunday (Aug. 12) at the Tucson Jewish Community Center, 3800 E. River Road. The show will be up through Sept. 11. An exhibit called “A Classic Collection,” featuring photographs by master artists will end its run Aug. 31 at Etherton Gallery, 135 S. Sixth Ave.

Film This week a slew of films hit Tucson screens including the highly anticipated revisit to “The Bourne Legacy,” which marks actor Jeremy Renner’s HERB STRATFORD debut in the Matt Damon-led franchise. Also, out for a different demographic this week, is “Hope Springs,” which follows a married couple — Tommy Lee Jones and Meryl Streep — as they work through intimacy issues with a therapist played by Steve Carell. A political comedy, “The Campaign” stars Will Ferrell and Zach Galifianakis about a wacky duo seeking election. And then there’s my pick of the week; the charming “Ruby Sparks,” about a writer who invents his ideal girlfriend on paper and she becomes real. The Loft Cinema, 3233 E. Speedway, is opening two compelling documentaries, “Ai Weiwei: Never Sorry” and “Neil Young Journeys” this week along with the outrageous Danish comedy “Klown.”

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


10 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

MEDIA

KRQ holds its own in first test against i97-5; Mix-FM takes a hit

Station

Format

Owner

Cumulus Clear Channel Journal

9.4 7.9

10.3 7.8

9.3 8.3

6.6

8.4

8.7

Lotus

6.3

5.3

7.0

Cumulus Lotus Arizona Public Media Lotus Clear Channel Clear Channel Clear Channel Journal

4.9 4.7 4.6

5.4 5.2 5.2

4.9 3.7 5.3

was known as Bob FM. Instead of wounding KRQ, the two stations may have created a synergy that contributed to a slight, 2.4 percent, increase in overall numbers of listeners tuning in top 40 music in a typical week. On the adult contemporary front, it appears that Mix-FM took a ratings hit, though it’s hard to pinpoint exactly where the audience might have gone. Audience numbers were up slightly for Clear Channel’s new hot adult contemporary music station My 929 KMIY 92.9-FM over what it did a year ago as the Mountain but outside of the increases for KRQ and i97-5, only Cumulus’ classic hits station K-Hit KHYT 107.5-FM registered significant gains among the targeted 25-54 year-old listeners. Overall, the country music format on Cumulus’ KIIM 99.5-FM remains the No. 1-rated radio station in the Tucson market, with KRQ moving up into the second-place position, Mix-FM dropping to No. 3, Lotus Corp.’s regional Mexican La Caliente KCMT 102.1FM back in at No. 4 and K-Hit at No. 5. There were also some interesting developments on the talk radio front, but more on that next week.

4.3 3.8

3.2 3.7

3.6 3.0

Harris leaves building

3.6

5.3

3.7

3.0

3.3

3.1

2.6

3.5

2.5

KZLZ LLC

2.6

3.0

1.4

Arizona Public Media Cumulus Clear Channel Journal Cumulus One Mart Clear Channel Journal

2.5

2.2

3.2

2.1 2.1

2.0 0.8

1.9 0.7

1 Johnjay and Rich

KRQ 93.7-FM

14,500

2.1 2.0 1.2 1.2

1.8 1.5 0.3 1.1

3.3 1.3 1.2 1.0

2 Max, Shannon and Porkchop

KIIM 99.5-FM

14,400

1.1

0.9

By David Hatfield Inside Tucson Business At first blush, it looks like the prognosticators got it wrong when they said Clear Channel’s KRQ 93.7-FM might get knocked down a peg or two in the ratings by the competition from Cumulus Media’s new i97-5 KSZR 97.5FM. They may have also missed the mark predicting that Journal Broadcast Group’s MixFM KMXZ 94.9-FM shouldn’t have too much of a problem fending off new competition. One ratings period doesn’t necessarily

decide anything. Most in the industry generally agree that it takes about a year for listener habits to settle in after a format change but the latest Arbitron ratings are the first full three-month ratings taken since a flurry of format changes took place between mid October and early February. This latest survey was conducted from March 29 to June 20. In the top 40 battle, KRQ held on to its No. 1-rating among younger listeners but i97-5 more than doubled its ratings from a year ago when it played adult contemporary music and

TUCSON RADIO RATINGS Average percentage of listening audience 12 years old and older, Monday-Sunday 6 a.m. - midnight

Ranking This

Last

1 2

1 3

KIIM 99.5-FM KRQ 93.7-FM

Country Top 40 hits

3

2

Mix-FM KMXZ 94.9-FM

4

5T

La Caliente KCMT 102.1-FM

5 6 7

4 7T 7T

K-Hit KHYT 107.5-FM KLPX 96.1-FM KUAZ 89.1-FM/1550-AM

Adult contemporary Regional Mexican Classic hits Classic rock NPR/jazz

8 9

12 9

KFMA 92.1-FM/101.3-FM KNST 97.1-FM/790-AM *

Alternative rock News-talk

10

5T

Hot 98.3 KOHT 98.3-FM

R&B hits

11

11

My 92.9 KMIY 92.9-FM *

12T

11

12T

13

The Groove KTGV 106.3FM * La Poderosa KZLZ 105.3-FM

Hot adult contemporary Rhythmic oldies

14

14

KUAT-FM 90.5-FM/89.7-FM

15T 15T

15 21

Pop standards Spanish oldies

15T 18 19T 19T

16 17 25 19

KTUC 1400-AM La Preciosa KTZR 1450AM * The Truth KQTH 104.1-FM i97-5 KSZR 97.5-FM * KEVT 1210-AM Tejano KXEW 1600-AM

21T

20

Sports-talk

Regional Mexican Classical music

News-talk Top 40 hits Spanish variety Tejano

21T

18

ESPN Radio KFFN 1490-AM/104.9-FM * KCEE 690-AM

23 24

22 24

The Source KCUB 1290-AM The Voice KVOI 1030-AM

Sports-talk News-talk

25T

-

KFLT 830-AM

Christian

25T

-

25T

23

-

-

KFLT-FM 88.5-FM KGVY 1080-AM/100.7-FM *

Star KWFM 1330-AM *

Pop standards

Inspirational music Oldies/ pop standards News-talk

April-June 2012

Good News Cumulus Good News Family Life Family Life KGVY LLC

Hudson

Jan-Mar 2012

April-June 2011

Steve Harris has departed Journal Broadcast Group where he had been creative services director of Tucson operations

for nearly seven years and, assuming there were no hitches along the way, he starts work Monday as creative services director at the CBS affiliate in Austin, Texas. The station, owned by Sinclair Broadcast Group, has the call letters KEYE, as in “K-Eye” — get it, “eye,” the CBS logo? As he was walking out the door in Tucson, Harris said he enjoyed his time here and spoke highly of Journal. As for why he made the move, “I’ve always wanted to live in Austin. It’s the Live Music Capital of the World,” he said, adding that he really didn’t seek out the job. “I mentioned once to a friend I know at Sinclair that I like Austin and of the markets where they have stations, I could go there.” As it turned out, they called him. In terms of responsibility, Harris will over see one TV station, as opposed to the two TV stations and four radio stations Journal operates in Tucson — KGUN 9, KWBA 58, Mix-FM KMXZ 94.9-FM, the Truth KQTH 104.1-FM, the Groove KTGV 106.3FM and ESPN KFFN 1490-AM/104.7-FM. This marks Harris’ return to working for Sinclair. Prior to coming to Tucson he was director of advertising and promotion at a station in Sacramento, Calif., for 13½ years and for eight of those years it was owned by Sinclair.

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

TOP 10RATED MORNING RADIO SHOWS Rank

Show

Station

Average audience 6-10 a.m. weekdays

3 Los Hijos de La Manaña

La Caliente KCMT 102.1-FM

11,900

4 Bobby Rich Morning Mix

Mix-FM KMXZ 94.9-FM

10,300

0.8

5 The Frank Show

KLPX 96.1-FM

8,300

6 Garret Lewis Morning Ritual

KNST 97.1-FM/790-AM

6,800

7 Tim Tyler

K-Hit KHYT 107.5-FM

6,400

8 Mojo in the Morning

Hot KOHT 98.3-FM

6,600

KFMA 92.1-FM/101.3-FM

4,900

La Preciosa KTZR 1450-AM

4,700

1.1

1.2

1.8

0.7 0.6

0.7 0.6

0.6 0.8

0.4

n/a

0.3

0.4

n/a

0.4

0.4

0.6

<

<

<

0.5

9 Fook 10 Alex "El Genio" Lucas Source: Arbitron Inc.

Source: Arbitron Inc. Exact dates of laterst ratings survey were March 29-June 20, 2012. Previous survey was conducted Jan. 5-March 28, 2012. Year ago survey dates were March 31-June 22, 2011. < - Indicates ratings below minimum for reliability. n/a - Noncommercial or religous station ratings unavailable. * Notes: KGVY began broadcasting on its FM frequency April 1, 2011. KMIY was formerly The Mountain KWMT with modern music format until Nov. 18, 2011. KNST began broadcasting on its FM effective Nov. 28, 2011. KSZR was formerly branded as Bob-FM with adult contemporayr music format until Feb. 3, 2012.

TOP STATIONS: ADULTS 2554

TOP STATIONS: ADULTS 1834 Rank

Station

Rank

Average audience

Station

Average audience

1 KRQ 93.7-FM

4,300

1 KIIM 99.5-FM

5,900

2 KIIM 99.5-FM

2,700

2 KRQ 93.7-FM

4,400

3 Hot 98.3 KOHT 98.3-FM

2,000

3 La Caliente KCMT 102.1-FM

4,200

4 tie La Caliente KCMT 102.1-FM

1,900

4 Mix-FM KMXZ 94.9-FM

3,900

4 tie KFMA 92.1-FM/101.3-FM

1,900

5 KFMA 92.1-FM/101.3-FM

3,200

4 tie KLPX 96.1-FM

1,900

6 KLPX 96.1-FM

3,100

1,400

7 K-Hit KHYT 107.5-FM

2,700

KTGV was formerly Mega KGMG with R&B and oldies format until Oct. 17, 2011.

8 tie K-Hit KHYT 107.5-FM

1,300

8 My 92.9 KMIY 92.9-FM

2,300

KTZR was formerly Funny KWFM with all-comedy format from Jan. 26-Nov. 21, 2011, and before that was Cool KWFM with oldies format..

8 tie My 92.9 KMIY 92.9-FM

1,300

9 Hot 98.3 KOHT 98.3-FM

1,900

KWFM was formerly branded The Jolt KJLL, but with same format, until Jan. 21, 2012.

7 Mix-FM KMXZ 94.9-FM

10 La Poderosa KZLZ 105.3-FM

10 La Poderosa KZLZ 105.3-FM

1,100

1,700

Source: Arbitron Inc.,average audience Aomen ages 25-54 Monday through Sunday, 6 a.m. to midnight.

Source: Arbitron, average audience Adults ages 18-34 Monday through Sunday, 6 a.m.midnight. `


InsideTucsonBusiness.com

AUGUST 10, 2012

11

BRIEFS GET ON THE LIST

Next up: Highest paid city and county officials, Salary comparison of regional government officials 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. 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 • Sept. 14: Minority-owned businesses, Exporters 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.

HEALTH CARE

Northwest hospital plans $50 million expansion Northwest Medical Center, 6200 N. La Cholla Blvd., this week announced plans to spend almost $50 million to expand its operating room expansion to include a new surgical wing. The project is to be completed in a series of phases beginning this winter and will take up to 20 months. Officials say construction won’t disrupt services at the hospital. Currently, Northwest Medical Center has 12 operating rooms. The expansion will bring that total to 16 rooms, all outfitted as minimally invasive operating room suites. An increasing number of surgeries are minimally invasive and the new suites will better accommodate that technology, the hospital said. Operating rooms will be an average of 550 square feet; the existing suites average 400 square feet. Larger rooms will allow greater access for the da Vinci Robot for minimally invasive surgical procedures.

MINING

State to issue Rosemont permits The Arizona Department of Environmental Quality on Friday (Aug. 3) announced plans

Sunflower is now officially Sprouts

As part of the final stages of completing their merger announced earlier this year, the Tucson region’s four former Sunflower Farmers Market locations were changed to Sprouts last weekend. The merged company, based in Phoenix, now operates under the Sprouts name at 4282 N. First Avenue at Limberlost Road, 7877 E. Broadway at Pantano Road, 4645 E. Speedway at Swan Road and 3860 W. River Road Orange Grove Road, Marana. They join one store Sprouts was already operating in Tucson at 7665 N. Oracle Road, Oro Valley.

to move forward on issuing an air quality permit for the proposed Rosemont Copper mine in the Santa Rita Mountains, about 30 miles southeast of Tucson. The ADEQ decision begins a 60-day process of public comment on the issuance of the air quality permit. The move follows a July ruling in Pima County Superior Court wherein a judge called Pima County Air Quality Control District and Pima County Air Quality Hearing Board “arbitrary and capricious” in denying Rosemont Copper the requisite permits. In a letter dated Aug. 3 to Ursula Kramer, director of the Pima County Department of Environmental Quality, the reiterated the assertion that the county had acted unfairly. “ADEQ finds PDEQ’s actions on the Rosemont permit have caused significant regulatory uncertainty by denying a permit application based on the lack of applicable SIP (State Implementation Plans) requirements, especially since the identification of those requirements has not been required of any precious applicant for at least a decade,” wrote Eric C. Massey, director of air quality for ADEQ. Because of that uncertainty, Massey wrote, the state chose to assert jurisdiction over air quality issues in relation to Rosemont. The legal and regulatory wranglings over the proposed open-pit copper mine in the Santa Rita Mountains has been going on since 2007. The project still requires regulatory approval from the federal government.

POLITICS

Chamber’s PAC issues 5 primary endorsements The Tucson Metro Chamber’s politicial action committee, the Southern Arizona Business Political Action Committee, has issued endorsements in five competitive primary election races. The candidates that are endorsed are either in a race that will be determined in the primary or must win the Aug. 28 primary to move on to the general election. Each of the endorsements is a result of an evaluation done by a committee of 11 chamber members, comprised of registered Democrats, Republicans and independents. The endorsed candidates are pro-business and “understand the vital role Arizona’s businesses play in the state’s economic vitality and thus are committed to preserving Arizona’s strong business climate and Arizona’s prosperity,” according to the chamber. For the state Senate, Olivia CajeroBedford is endorsed in the Democratic primary over Maria Garcia in Legislative District 3. There is no Republican running in the general election so, barring a writein candidate, the winner of the primary will be elected. For the state House, the committee endorsed Victoria Steele in the Democratic primary in District 9. There are two other candidates in that race, Dustin Cox and Mohur Sara Sidhwa. The two highest

vote getters will face Ethan Orr, the only Republican seeking to fill the two open House seats. In District 10, the committee endorsed incumbent Bruce Wheeler in the Democratic primary over the two other candidates, Stefanie Mach and Brandon Patrick. There are also two Republicans seeking House seats in that district, Todd A. Clodfelter and incumbent Ted Vogt. The other two endorsements were made in county races. For Board of Supervisors in District 1, the committee endorsed Mike Hellon over Stuart McDaniel, Ally Miller and Vic Williams in the Republican primary. The winner will face Democrat Nancy Young Wright in the general election seeking to fill the seat being vacated by Ann Day. And for Pima County School Superintendent, the chamber committee endorsed the re-election of Linda Arzoumanian over Mace Bravin in the Republican primary. There is no Democrat running in the race. Early voting is already underway and continues through Aug. 24 for the primary election. The Southern Arizona Business PAC is a pro-business committee that supports candidates of all parties who understand the vital role Arizona’s businesses play in the state’s economic vitality and thus are committed to preserving Arizona’s strong business climate and Arizona’s prosperity. SAZPAC is the political action arm of the Tucson Metro Chamber.

Realtors make endorsements in 3 of 5 supervisor races The Tucson Association of Realtors has issued endorsements in three of the five Pima County Supervisor election races. The group endorsed incumbents Ray Carroll in District 4, and Democrat Ramón Valadez in District 2. Carroll is facing a primary election challenge from Sean Collins but there is no Democrat running in the general election. Valadez has no primary challenge but will face Republican James Kelly in the general election. The Realtors’ other endorsement went to Stuart McDaniel, one of four Repbulicans seeking to fill the vacancy created by the retirement of Ann Day. The other Republicans are Mike Hellon, Ally Miller and Vic Williams. The winner of that primary will face Democrat Nancy Young Wright in the general election. The Realtors made no endorsements in the other two supervisor races. In District 3, incumbent Demcorat Sharon Bronson is facing a challenge from Republican Tanner Bell and in District 5 incumbent Democrat Richard Elias is being challenged by Republican Fernando Gonzales.


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13

PROFILE

Chapman Lindsey’s positive attitude helps clients get through down cycles By Christy Krueger Inside Tucson Business

BIZ FACTS Otis Blank

A slow real estate market can have its advantages depending on how one looks at it. From James Marian’s perspective as a longtime Tucson commercial real estate broker, what’s bad on one side of the coin may be good on the other side. “When the market is hot, it’s difficult to make deals. The easiest time to sell real estate is when the market is in the toilet,” Marian said. In 1991, Swaim Chapman, Paul Lindsey, Ben Becker, Daniel Feig and Marian formed Chapman Lindsey Commercial Real Estate Services. Today, Marian and Feig are the only remaining original partners. Alan Moore has since become a third partner and Aaron Mendenhall and Juan Teran are associates. The company handles all facets of commercial transactions, including investments, land, office, industrial, leasing and shopping center management. The Chapman Lindsey team members have been around long enough to live through several economic cycles and are familiar with how market swings affect their business. They take the positive approach, sometimes going after business others may not want to touch. “We’ve done very well in the worst markets,” Marian said. “We formed during the RTC (Resolution Trust Corporation) days; we did 52 transactions with RTC. We do a lot of foreclosure work. We’ve done $600 million in real estate deals with only four or five partners.” Although their specialties overlap with one another, Feig concentrates on selling subdivisions, vacant land and shopping centers; Moore sells and leases office and industrial space; and Marian works with land, which can be different than other segments of commercial real estate. “It takes longer to close, especially if rezoning is involved, which can take six to 12 months. There is a lot of analysis, feasibility, engineering, title reports and setbacks. Land buying is as varied as they come,” he said. Land clients include end-users, such as drug stores chains, churches and charter schools. “Then there are investors who look. They’re from both in and out of town,” Marian noted. Among the firm’s largest land clients over the years have been homebuilders. “We’ve done business with every single homebuilder in town.” Many were once headquartered in Tucson, Marian added,

The Chapman Lindsey team, from left: Juan Teran, Jim Marian, Aaron Mendenhall, Daniel Feig, Alan Moore.

Chapman Lindsey Commercial Real Estate Services LLC but have since consolidated and moved to Phoenix. Business for Chapman Lindsey comes mostly through word of mouth. “Ninety percent or more of our business is from referrals, we’ve been in town so long. They come from prior buyers and sellers, other real estate brokers, civil engineers, attorneys and bankers,” Marian said. Sometimes contacts from decades past become clients. In the late seventies, while a student at University of Arizona, Marian was the business manager for the Arizona Daily Wildcat. One of his advertising accounts was Posner’s Art Store. Marian recently represented Posner’s in its search for a new location, made necessary due to a student housing project being built on the site at 1025 N. Park Ave. where it has been for close to 40 years. This month, Posner’s opened at its new location, 944 E. University Blvd. in the Main Gate Square area. Outside of work, the partners and associates of Chapman Lindsey are active in the community and describe themselves as family oriented and highly ethical. They’re involved in civic and church groups, as well as industry organizations, such as Pima County Real Estate Research Council and Tucson Association of Realtors.

7411 E. Tanque Verde Road www.chapmanlindsey.com (520) 747-4000 Marian and Teran are past presidents of Certified Commercial Investment Member, and Marian is the founder of the CCIM annual market forecast competition. Chapman Lindsey’s forecast for the upcoming months is an improvement in the market. “We’re in what’s called a sweet spot — not for apartment land, but for invest-

ment land. Buyers are more optimistic and sellers are finally discounting,” said Marian. In his experience, and that of his partners, large investment land is moving, while the market is soft for small investment parcels. On the other hand, Marian realizes that the health of a particular real estate segment depends on which point of view you have. “There’s always demand for a given price,” he said, “but it may not be what the seller wants.”

The Chapman Lindsey partners, from left: Jim Marian, Daniel Feig, Alan Moore.


14 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

COMMERCIAL REAL ESTATE

INDUSTRIAL SECTOR

Fundamentals are mostly flat with small gains

George Howard

By Roger Yohem Inside Tucson Business

Involta moved into the market with a $2 million building acquisition.

Although the sector’s fundamentals remain fairly flat, industrial real estate managed to eek out a slight improvement in occupancy and rental rates in the second quarter of 2012. Overall, the sector absorbed 122,175 square feet, nudging the vacancy rate down to 11.6 percent from 11.7 percent at the end of the first quarter, according to CoStar Group. The flex-building subsector performed best, gaining 64,229 square feet of occupancy. “Some of the positive absorption numbers are a great sign the market has come to life. Yet while many companies are looking to expand their industrial space, nearly as many are looking to contract,” said Tim Healy, CBRE vice president and industrial market specialist. “This tug-and-pull of space may continue for the next few quarters but it is hoped the expansion and absorption will begin to outpace contraction.” Although the improved performance and “brokers are busy” mantra have not yet brought substantive expansion and job growth, Healy is optimistic about the com-

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InsideTucsonBusiness.com

AUGUST 10, 2012

15

COMMERCIAL REAL ESTATE BIZ FACTS

INDUSTRIAL SECTOR (2nd Quarter) • Vacancy rate 11.5% at 2011 4Q 11.7% at 2012 1Q 11.6 % at 2012 2Q Absorption: 122,175 square feet • Largest building sale $4 million for 110,026 square feet 2650 E. Elvira Road Seller: Veeco Instruments Buyer: Zygo Corporation • Largest building lease 101,226 square feet 6950 S. Country Club Road Solon America • Largest land sale $2.97 million for 11 acres SWC Houghton/Mary Ann Cleveland Way Seller: Diamond Ventures Buyer: Wal-Mart Real Estate • Largest new completion 55,000 square feet 3760 E. Tennessee St. Graybar Electric Company • Largest under construction 125,000 square feet 6720 S. Alvernon Way American Tire Distributors ing months months. For the past few years years, every local industrial market report was negative. Absorption was negative. Rent rates were eroding. “Now we see quarterly swings from negative to positive, a sign that we are on the road to recovery. Eventually, this will lead to expansion. You don’t go from A to Z in one leap. We’re somewhere in the middle, that’s how I look at the recovery,” he said. “The conditions are starting to line up to get us there.” A positive was Pima County’s move to secure a buffer zone around Raytheon Missile Systems south of Tucson International Airport. At $6 million for 382 acres, the safety and operations buffer also includes plans for a business park. “That sent a good message to the market, local and national, that Pima county and Tucson city governments are serious about keeping Raytheon happy. Government is important to business, they can be a good partner or a bad partner,” Healy said. During the second quarter, three new buildings totaling 79,153 square feet were delivered. The largest was Graybar Electric’s 55,000 square-foot facility near South Alvernon Way and East Irvington Road.

Construction in-progress totaled 175,000 square feet, according to CBRE. The largest project is a 125,000 square-foot logistics center by American Tire Distributors at 6720 S. Alvernon Way. Also notable is the purchase and redevelopment of a 40,000 square-foot building at 4400 S. Santa Rita Ave. by Involta. The $15 million, state-of-the-art data center will feature 600 cabinets of high-security IT equipment serving national healthcare, government, educational, and other business clients. “Sales in the quarter were larger, of a higher quality than in recent periods although volume remains far from robust,” said Peter Douglas, principal of Picor Commercial Real Estate. “Investor activity remains dominated by short sales and purchases directly from foreclosed lender inventory. We do see some opportunistic activity as both businesses and investors pick up business from compressed competition.” Since January, 32 industrial buildings have been sold and the current inventory stands at about 135 properties, added Hank Amos, president of Tucson Realty & Trust. That is enough “for the next two-plus years,” he said. The Tucson market’s total industrial inventory now stands at 39.46 million square feet in 2,449 buildings, according to CoStar. Having lost 99,215 square feet of absorption in the first quarter, the sector currently stands at 22,960 square feet net absorption. Owner-occupied buildings account for about 4 million square feet in 99 buildings. The southwest/Tucson Airport subsector had the highest vacancy rate at 17.7 percent. The downtown zone had the lowest vacancy rate of 5.7 percent. For the total industrial sector, the average asking lease rate increased 17 cents to $6.65 per square foot in the second quarter. One year ago, the rate was $6.62, according to CBRE. For this sector to progress, the region must cash in on its status as a hub for defense and aerospace manufacturing, medical and life sciences research, and as a logistics location for international trade. “The tenor of the market remains tentative, with fundamentals fairly flat. Activity is fairly shallow, and velocity remains slow,” said Douglas of Picor. Added Healy, there is a lot of activity but much of it is “existing businesses moving around. At the end of the day, we need job growth. A town creates wealth by exporting goods.”

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

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16 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

COMMERCIAL REAL ESTATE

OFFICE SECTOR

Downtown, medical share spotlight as sector stabilizes By Roger Yohem Inside Tucson Business

George Howard

Two dissimilar business zones split the spotlight for office space during the second quarter. As the downtown sector continued to lose tenants and evolve, an eastside health care cluster tended to some large-scale “vertical” new construction. “The only submarket to experience a significant change in vacancy last quarter was downtown, which saw vacancy increase by 4.2 percent to 35.7 percent,” said David Montijo, first vice president of CBRE. “The increase is largely due to the FBI vacating roughly 25,000 square feet, along with several other tenants contracting space on renewal leases at the office tower at 1 South Church.” CBRE represents the downtown tower that also lost UniSource Energy as a tenant. The utility company vacated 35,000 square feet when it moved into its own new headquarters at 88 E. Broadway. At 275 N. Commerce Loop west of downtown, the FBI has occupied its new 92,000 square-foot regional headquarters. Downtown has the region’s highest office vacancy rate at 35.7 percent, or about 340,000 square feet, according to CBRE. The

The quarter’s largest lease was for 19,457 square feet by the University of Arizona Medical Center in an east side medical cluster.

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strongest area was the north central zone at 11.9 percent, gaining just over 10,000 square feet of occupancy during the quarter. This area basically covers properties north of River Road. CBRE analyzes properties larger than 10,000 square feet and put the region’s overall vacancy rate at 17.7 percent. CoStar tracks all office buildings and set the region’s vacancy rate at 12.2 percent. Despite a small second quarter occupancy loss of 23,347 square feet, some 68,000 square feet of office space has been absorbed year-to-date. “Tucson’s office market remains stable, yet far from dynamic, due largely to limited job creation. Lease activity was dominated by renewals and relocations to upgrade quality of space and location. Often, those were downsizing moves to more efficient space,

AUGUST 10, 2012

COMMERCIAL REAL ESTATE some two-story structures were built in the late 1920s. Tucson Orthopedic Institute will vacate a nearby building and lease the West Pavilion’s first floor. That move and the expansion will open about 77,000 square feet of office space at the health care cluster. “Clearly, activity is strongest in the medical sector,” said Kleiner. The Tucson market’s total office inventory now stands at 23.8 million square feet in 2,409 buildings, according to CoStar. There are only 18 Class A offices in the sector. At the end of the second quarter, the aver-

age quoted rate was $22.92 in Class A; $18.85 in Class B; and $14.96 in Class C. Quarter over quarter, rates in Class A and C increased slightly while Class B recorded a small decrease. Often referred to by industry insiders as “jobs in a box,” the office sector was basically stable in the second quarter. The category’s fundamentals “have ceased deteriorating,” explained Kleiner. “On the sales side, office and medical office properties still do not sell under traditional investment criteria in this climate of gradual recovery. Most investor sales are

driven by distress, namely short sales and auction activity,” Kleiner added. Looking ahead, as office markets in larger western cities continue to improve, those gains should spill over into Southern Arizona. But since Tucson is a “tertiary, thirdtier city, decisions affecting the local market here will be made after companies take care of their first and second tier operations,” explained associate broker Michael Gross of Tucson Realty & Trust.

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

BIZ FACTS

OFFICE SECTOR (2nd Quarter) •Vacancy rate 12.1% at 2011 4Q 12.1% at 2012 1Q 12.2% at 2012 2Q Absorption: Minus 23,347 square feet • Largest building sale $575,000 for 4,382 square feet 400 W. Magee Road Seller: Eichman Trust Buyer: Soofia Rubbani • Largest building lease 19,457 square feet University of Arizona Medical Center 535 N. Wilmot Road • Largest under construction 15,067 square feet 1020 S. Harrison Road Hazen Enterprises driven by technology and reduced head count or consolidation,” said Rick Kleiner, a principal with Picor Commercial Real Estate Services. “The pendulum still swings toward the tenant, with abundant concessions in the market,” he added. Despite the glut of vacant office space downtown, a six-story mixed-use project is being planned at 1 E. Broadway. Its intended main tenant is the Pima Association of Governments/Regional Transportation Authority in a 124,000 square-foot building. To be developed by Robert Caylor Construction, the site also would feature apartments and street-front retail space. Caylor also owns the Chase Bank building next door at 2 E. Congress St. Much of the sector’s brightest spotlight shifted to the east side where Tucson Medical Center, 5301 E. Grant Road, is building a 200,000 square-foot addition known as the West Pavilion. The four-story state-of-theart facility, set to open next April as part of a $109 million construction improvement program, is the first multi-story hospital building — outside of parking garages — since

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18 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

COMMERCIAL REAL ESTATE

RETAIL SECTOR

Retailâ&#x20AC;&#x2122;s invasion of the C-stores and Walmart BIZ FACTS

RETAIL SECTOR (2nd Quarter) â&#x20AC;˘ Vacancy rate 8.4 % at 2011 4Q 8.6% at 2012 1Q 8.5 % at 2012 2Q Absorption: 74,762 square feet â&#x20AC;˘ Largest building sale $9 million for 90,312 square feet 3390 S. Sixth Ave. Seller: Bankers Trust Buyer: Curacao Ltd. â&#x20AC;˘ Largest building lease 50,000 square feet 5545 E. Broadway Hobby Lobby

George Howard

â&#x20AC;˘ Largest new building 9350 E. Golf Links Road 37,470 square feet LA Fitness

Walmartâ&#x20AC;&#x2122;s new supercenter opens at The Bridges this year.

By Roger Yohem Inside Tucson Business

THE PLACE BRIGHTER

As the absorption of existing space runs at a modest pace, the retail race is being led by another base. New construction, raze and rebuild, expand by renovation, and gather the old to build-anew projects are heading the sector. â&#x20AC;&#x153;We could easily call this the Wal-Mart invasion. That and the C-Stores (convenience). QuikTrip and Circle K are really aggressive right now. They are assembling properties to get the larger sizes they need,â&#x20AC;?

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InsideTucsonBusiness.com

AUGUST 10, 2012

COMMERCIAL REAL ESTATE

at 2711 S. Houghton Road. And in June, Wal-Mart closed on 11 acres of land for $2.97 million on the southwest corner of Houghton Road and MaryAnn Cleveland Way. Razing and rebuilding is rocking at two outdated plazas. Portions of the Rolling Hills Shopping Center, 2550 S. Kolb Road, and Berkshire Village, at East Broadway and South Camino Seco, are being redeveloped as 40,000 square-foot Walmart Neighborhood Markets. The region’s highest-profile renaissance is in midtown where a new Stein Mart,

Hobby Lobby, Mattress Firm, and Vitamin Shoppe are reviving the northeast corner of East Broadway and Craycroft Road. The 7.4acre site, last occupied by a Mervyn’s Department Store, is getting a total makeover from owners Benenson Capital Partners, New York. Nancy McClure, CBRE first vice president, brokered the deal that brought the four tenants into the long-vacant parcel. Stein Mart and Hobby Lobby will occupy the existing 81,000 square-foot building. Mattress Firm and Vitamin Shoppe will take part of a new free-standing, 14,500 square-foot pad. Some

retail space is still available on the pad. For the total retail category, the vacancy rate dipped from 8.6 percent in the first quarter to 8.5 percent in the second quarter. Absorption was 74,762 square feet, putting the year-to-date pace at positive net 37,896 square feet, according to CoStar Group. “Positive is positive. The Tucson retail market did experience a slight increase in occupancy,” said Greg Furrier of Picor Commercial Real Estate Services. “Looking back over the past two years, vacancy has been hovering in the mid-eight percent range with only minor fluctuation.”

Average quoted rental rates ended the quarter at $14.50 per square foot per year, 8 cents higher than the first quarter. One year ago, CoStar reported the value was $14.89, or 2.6 percent higher. With lease rates relatively flat, “Retailers continue to move up to higher-quality locations, with tenants taking advantage of higher-traffic locations with visibility near Tucson’s major malls,” Furrier said. “Former Blockbuster locations continue to turn, with users such as urgent care centers, restaurants, and mattress retailers benefiting from these corner sites. Medical clinics and urgent care are also striking deals at competitive lease rates in shopping centers as landlords continue to solve vacancy issues,” he added. Although progress is welcome, economic uncertainty continues to haunt the market. Tucson’s retail real estate recovery is being held back by slow local job growth, shaky consumer confidence, credit rating downgrades and the Euro debt crisis. Politically, the nation is anxious about November’s presidential election “We need to give credit to our local Mom and Pop tenants. They’re working hard, found a niche, but are constantly battling national and regional tenants,” said Darcy. “We need to support them as much as we can.” “For the most part, the second quarter saw an uptick in activity among small tenant and local merchants, which had been missing in recent periods. High asking rents within anchor space has made it difficult to entice large national retailers to Tucson,” said McClure of CBRE. “Retailers have recently become more flexible with their space requirements,” McClure added, “suggesting that the Tucson market is ripe with opportunity.”

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QuikTrip is part of the C-store “invasion.”


20 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

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The Tucson Weekly and Inside Tucson Business are looking for a person to lead our new media efforts. Our Web Producer will: â&#x20AC;˘ Under the direction of the editors and the publisher, take the lead on the day-to-day management of all of Territorial Newspapersâ&#x20AC;&#x2122; various Web projects, including InsideTucsonBusiness.com and TucsonWeekly.com. A high priority is placed on constant updates on all online and social media platforms. â&#x20AC;˘ Work with writers, editors, photographers and designers to develop Web-exclusive content. â&#x20AC;˘ Develop Web-exclusive content for the Territorial Newspapersâ&#x20AC;&#x2122; websites. This will require making contacts in the community, keeping up with local happenings and simply being the first to know everything relating to Tucson. Some days this person will be covering breaking news and reporting online. On other days, will involve browsing the Internet for Tucson content. On other days, it will involve long-term planning for our Websites. Consideration will go only to those who have writing and reporting experience in addition to the necessary technical skills. The ideal candidate will have a wide variety of experience doing Web development; have knowledge of basic HTML; be familiar with various website and social-networking platforms; and be fantastic at working with people. A working knowledge of Adobe Photoshop and Indesign is a plus, as is video-editing experience. This is a full-time position, with benefits. The deadline for applications is 5 p.m., Wednesday, Aug. 15. Please send a cover letter, a resume and links to work samples to editor@azbiz.com or mailbag@tucsonweekly.com.

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26 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE

Make the right financial moves in your marriage

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

Marriage affects how you build wealth, pay taxes and plan your estate. It’s important to make the right moves, especially at the beginning. When you and your spouse plan your finances, your focus is likely to span careers, lifestyle issues, family, wealth management and virtually every element of your life as a couple. Sophisticated planning can enhance your progress in these and other areas from the start.

Southern Arizona presence

Protect your assets As a first step, understand your options for protecting assets that each of you brings to the marriage. • Decide whether a prenuptial agreement is appropriate. If one or both of you have an interest in a business, an inheritance or other substantial assets, there may be compelling reasons for maintaining those assets separately. This is especially true in community property states, where property may be divided evenly in the event of a divorce, regardless of how it came into the marriage. • Review the beneficiary designations on your insurance policies, banking and investment accounts and retirement plans. A beneficiary designation is important because it can override the terms of a will. With an employer-sponsored retirement plan, you may be required to name your spouse as beneficiary unless your spouse waives this right in writing.

Create a budget Agreeing on short-term cash management can go a long way toward assuring that mutual goals are met. • Build a budget. Even if you did not have a formal budget prior to marriage, creating one now will help you and your partner get a clear picture of where you stand financially. • Determine how you will pay debt incurred before you got married. Generally speaking, debt incurred prior to marriage remains the legal obligation of the person who took out the loan. But if the loan is secured by jointly held assets, such as a car, it can get more complicated. • Envision your desired lifestyle five or ten years into the future. If a larger home, a

family or your own business is in the picture, start budgeting now to make these goals happen.

Review your investments Adequate diversification could help you build wealth and manage the short-term volatility of the financial markets, even though it may not assure success. • Review your joint financial assets, both retirement and nonretirement. Also consider real estate if either of you owns a primary residence or a vacation home. • You may not be adequately diversified if your assets mirror one another. Consider the diversification available through mutual funds and professionally managed accounts, and think beyond traditional asset classes such as stocks and bonds. W. DAVID FAY

Plan for the future Retirement saving, life insurance and estate planning are important, even if these areas are not your immediate focus. • Make investing for retirement a priority. If both of you are employed and have access to employer-sponsored retirement plans, you each can contribute a maximum of $17,000 for 2012. • There are several types of trusts that an estate planning attorney can review with you. A living trust allows the grantor (the owner of the assets) to remain both a trustee and beneficiary of the trust while he or she is alive. Upon the grantor’s death, a successor trustee manages or distributes the remaining assets. When philanthropy is part of the picture, consider a charitable lead trust or a charitable remainder trust. You and your spouse are at a critical juncture in your joint financial life. Contact your Financial Advisor to help you make the most of it.

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

Company Name

Symbol

Aug. 8

Aug. 1 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

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.

0.04 0.02 12.59 41.07

0.05 0.01 12.31 40.15

-0.01 0.01 0.28 0.92

0.03 0.01 8.35 33.98

0.50 0.10 15.94 42.10

8.74 0.50 2.23 7.72 57.45 7.06 84.67 19.99 58.90 3.76 18.01 28.95 34.35 24.43 29.85 15.72 95.56 41.76 45.21 9.48 71.45 56.36 17.89 35.65 25.93 52.66 58.99 199.31 33.23 59.44 5.80 37.27 32.92 10.04 52.23 22.68 1.25 30.33 26.15 40.52 57.42 38.04 37.51 35.67 46.18 67.88 21.26 11.97 55.60 44.67 15.92 41.53 53.36 8.28 9.09 43.64 32.12 62.91 16.45 29.23 42.26 18.05 122.01 28.22 10.34 33.08 74.49 36.12 33.79 9.61 19.04

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

0.31 -0.01 0.40 0.50 0.34 0.33 0.05 1.92 3.14 0.16 1.34 2.17 0.80 -0.05 5.35 0.69 -0.38 -0.36 0.37 0.00 6.13 2.41 0.62 2.16 1.02 0.98 0.99 4.13 0.89 1.51 0.29 1.27 1.30 0.84 2.50 0.48 0.05 1.36 1.01 1.07 -0.75 2.98 1.16 1.10 1.13 2.04 0.24 0.93 0.69 0.53 0.34 1.08 4.82 1.73 -0.09 -0.59 3.72 2.29 0.50 1.60 2.66 -0.12 0.42 1.59 -0.49 -0.24 0.87 -0.15 -0.11 0.64 0.76

7.97 0.20 1.48 4.92 50.95 5.30 65.35 16.97 43.77 3.30 12.30 21.40 19.46 14.61 22.19 8.49 70.22 31.16 31.79 6.60 38.99 43.64 8.03 28.85 16.92 28.32 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 33.09 20.96 46.61 14.04 24.34 27.62 15.51 77.73 25.77 3.96 20.10 48.31 28.53 22.58 4.44 13.18

12.93 3.94 4.30 10.10 62.80 9.94 86.01 28.53 60.00 5.45 21.16 38.40 35.16 28.79 33.80 15.83 97.76 42.70 48.69 12.25 72.46 67.20 19.35 48.96 30.49 54.28 62.00 210.69 34.77 62.33 5.85 46.49 35.86 13.12 56.66 24.83 1.81 31.90 32.29 41.80 62.83 42.17 40.45 38.16 48.31 67.96 43.18 12.19 56.92 46.40 23.16 42.30 85.90 14.32 10.05 46.08 32.79 62.18 18.66 34.24 42.26 25.84 126.91 58.29 14.51 34.10 75.24 37.61 34.80 9.92 22.81


InsideTucsonBusiness.com

AUGUST 10, 2012

27

INSIDE REAL ESTATE & CONSTRUCTION

Foreclosures and distressed sales out of sync By Roger Yohem Inside Tucson Business Like an annoying, amateur drummer, with one hand banging out a faster rhythm while the other plays a slower beat, July residential foreclosures continued to be out of sync, Trustee’s notices still far outpace sales of distressed homes. According to the Pima County Recorder’s Office, foreclosure notices totaled 797 for the month, bringing the year-to-date total to 6,164 (see chart). That is 12 percent more than the 5,513 notices issued during the first seven months of 2011. Meanwhile, sales of distressed homes are down about 1,300 for the same comparative months. The 20 percent drop is significant, slowing to 3,252 sales this year from 4,549 last year. Ginger Kneup, owner of Bright Future Real Estate Research, expects the numbers to continue in opposite directions until year-end. “There are still a lot of distressed homes out there, people who have stopped paying their mortgages but haven’t received notices yet. They are simply not that far into the foreclosure process,” Kneup said. A trustee’s notice, notifying owners their property is in default and scheduled to be sold at a public auction, is the first step in the foreclosure process. Comparatively, trustee’s notices are averaging 881 per month this year, up from 786 notices in 2011. Diverse factors “complicate the reality” of where the distressed housing market is headed. Kneup believes more short sales are now in play, banks are shifting their approaches to delinquencies, and shadow inventory remains an unknown.

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

TUCSON REAL ESTATE

7/30/2012

7/23/2012

$137,900 4,085 342 364 245

$140,100 4,091 306 411 235

Source: Long Realty Research Center

Notices of Trustees Sales Pima County Recorder Foreclosures 2007 346 276 305 300 396 377 419 503 394 483 540 475 4,814 401

Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Total Mo. avg.

30 YEAR 15 YEAR 3/1 ARM

Current

2009 882 1,016 1,154 1,093 991 1,002 1,063 1,130 1,008 948 859 1,038 12,184 1,015

2010 863 982 1,089 985 890 862 1,111 1,067 1,090 1,019 829 876 11,663 972

2011 975 762 948 721 748 693 666 917 797 816 754 636 9,433 786

2012 705 918 904 910 984 946 797

6,164 881

Pima County Recorder’s Office data

“We hope notices drop by the end of the third quarter,” Kneup said. “I now expect the volume will not accelerate further but the year-end number will be higher.”

Sundt is decade’s best Sundt Construction has been named one of the “100 Best Arizona Companies of the Decade” for its workplace performance with employees. Mesa-based business consultant BestCompaniesAZ honored the firm for its quality employee-centered policies and programs. “We believe it is our people who make the difference,” said Richard Condit, chief administrative officer for Sundt. “We know if we keep our employees happy, they in turn, will work hard to keep our customers happy. We are grateful to be honored among other Arizona companies dedicated to creating great workplaces and maintaining the highest performance standards.” Sundt Companies, 2015 W. River Road, has subsidiary Sundt Construction in Tempe. The contractor was recognized for its employee benefits, employee stock ownership plan, and its Sundt Foundation, a separate non-profit organization that helps disadvantaged children and adults.

WEEKLY MORTGAGE RATES Program

2008 699 598 661 700 720 742 721 814 782 921 675 923 8,956 746

Last Week

8/7/2012

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

4.95% 4.22%

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

3.50% 3.00%

Sundt’s roots go back more than 120 years to a small construction company that was started in New Mexico by Mauritz Martinsen Sundt, a Norwegian immigrant. The company moved to Tucson in 1929 and is now owned by its 1,300 employees.

Hamstra’s top techs “NATE” knows Tucson’s Hamstra Heating & Cooling well because the company now has the most NATE-certified technicians in Arizona. NATE stands for North American Technical Excellence and is the nation’s highest heating, cooling and ventilation certification program. Hamstra Heating & Cooling, 2035 E. 17th St., has 22 NATE-certified technicians and four Building Performance Institute residential energy building science experts. Founded in 1983 by Glenn Hamstra, the third-generation company is now run by sons Jeff Hamstra, David Hamstra and grandson Wade Hamstra.

RTA digs Grant Road The first shovel of dirt has been turned in the Regional Transportation Authority’s $200 million, five-mile Grant Road widening project. In Phase I, reconstruction of the Grant Road/Oracle Road intersection is underway. This phase will widen Grant Road to six lanes from 15th Avenue to Castro Street. Turning lanes and medians also will be reconfigured at the intersection. The lead contractor is Tucson-based Falcone Brothers & Associates, which specializes in highways, streets and bridges. The $7.5 million project will take about one year to complete. Construction along the Grant Road corridor will continue through 2026.

Sales and leases • John R. McDade II purchased a 10,772 square foot office-showroom at 3650 N. Oracle Road for $625,000 from Three Dog Dancer LLC, represented by Stephen Cohen, Russell Hall and Patrick Welchert with Picor Commercial Real Estate Services. The buyer was represented by Brandon Rodgers, also with Picor. • 1-800-Pack-Rat LLC leased 13,879 square feet at 2430-2460 N. Flowing Wells Road, Units A and B, from German Ustariz. The transaction was handled by Chuck Blacher, Tucson Realty & Trust. • Wal-Mart leased 3,520 square feet at 1010 E. Palmdale St. from Foothills Business Ventures, represented by Gary Emerson, GRE Partners. The tenant was self-represented. • Alphagraphics leased 2,700 square feet at 4811 E. Grant Road in Crossroads Festival from Larsen Baker, self-represented by Andy Seleznov. • Dyson Dermatology leased 2,697 square feet at 2141 N. Beverly Ave. from TMC Holdings, represented by Tom Knox of Picor. The tenant was represented by David Montijo, CBRE. • Select Comfort Retail Corp. leased 2,500 square feet at 4500 N. Oracle Road from BP Thackeray Investors LLC, represented by Alan Tanner, CBRE. • Dental Village leased 2,400 square feet at 3908 E. Grant Road from Grant Alvernon Realty Trust, represented by Greg Furrier, Picor Commercial Real Estate Services. • Southern Arizona Restaurant Company doing business as Smashburger leased 2,300 square feet at 4821 E. Grant Road from Crossroads Canada LLC. The tenant was represented by Greg Furrier of Picor. • EV Gourmet International Cuisine doing business as Tapas Fusion leased 2,297 square feet at 2800 N. Campbell Ave. in Campbell Plaza from Camelback Corporate Center Joint Venture LLC, represented by Nancy McClure, CBRE. Denise Yardy, Long Business Brokerage, represented the tenant. • Rural/Metro Corporation leased 1,162 square feet at 2224 N. Craycroft Road, Suite 105 from U.S. National Bank Association, represented by Rick Kleiner with Picor. • Chris Bubany Studio leased 1,044 square feet at 6530 E. Tanque Verde from La Plaza Shoppes, represented by David Carroll of Romano Real Estate Corporation. • Mark Heltemes State Farm Insurance leased 980 square feet at 18805 S. I-19 Frontage Road A-109 in Sahuarita from Sunlife Assurance Company of Canada, represented by Greg Furrier and Rob Tomlinson of Picor.

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


28 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

From here to there, by way of Michigan I’m thinking local government officials ought to seriously consider publishing a Tucson regional supplement to the Arizona Driver License Manual — if only to help alleviate confusion to the array of left-turn options drivers are given here. Tucson drivers are about to be introduced to yet another — a third — style of left turns. And here you thought there was only way to make a left turn. DAVID HATFIELD Not content to leave things as they are in most other cities where traffic lights signal a green left turn arrow at the beginning of a phase, several years ago Tucson’s traffic engineers introduced the “lag left turn” in which the green arrow comes at the end of the cycle. I’ll admit that when they were first introduced, I thought it seemed like a good idea. If you could safely make a left without the green arrow so much the better but it was there if you needed it. Come to find out there are two reasons lag left turn traffic signals weren’t adopted in most other places. First, intersections with lag left-turn lights tend to have more crashes because they’re confusing to drivers. Second, the lag left-turn signals screw up traffic flow and make signal synchronization virtually impossible. As if we ever had synchronized traffic signals in Tucson. Oh, there were those few years in the 1980s when Pima County tried it on Ina Road but they could never figure it out right. And now version number three for how to make a left turn is called a “Michigan Left Turn,” apparently so named because they were introduced in Michigan in the 1960s. There’s no reason to get too excited just yet. Work only began last month on the road where they will be implemented, Grant from Oracle to Swan roads. The project is going to take 14 years to be completed. Just the first phase of the project, widening the Grant and Oracle intersection, is going to take a year. Once installed, drivers traveling east and west on Grant Road will no longer be able to make left turns directly on to major cross thoroughfares. Instead, the Michigan Left Turn entails drivers traveling straight through the intersection to the next cross street where they will make U-turn and then double-back to make a right turn on to the thoroughfare. I’m not doing this justice in words and our friends at the Regional Transportation Authority (RTA) have put together a 4 minute and 11 second video demonstrating the maneuver, which can be found here: www.grantroad.info/left_turn_video. htm . Among the features that must be incorporated into the design of these Michigan Left Turns is providing enough room for semi-trucks to make the U-turn and that means more right-of-way. Supposedly there are some sound arguments in favor of these kinds of left turns. They allow for more through traffic at intersections by eliminating the traffic light phase for left turns. That’s well and good but don’t you wonder if they were really so good, why are they still called Michigan Left Turns? Shouldn’t they be everywhere?

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

EDITORIAL

Tucson Forward sets Tucson back Ever hear of a group named Tucson Forward? We aren’t surprised if you haven’t. But Tucsonans might be surprised to learn that decision-makers at the Pentagon are under an impression the group represents the majority view here. This month those decision-makers picked Luke Air Force Base in Glendale to be the new pilot training center F-35 fighter jets. And with that decision, the Tucson region lost out on up to $125 million in federal funds for constructionrelated projects, 1,000 direct and indirect permanent jobs and $17 million that would come in to local governments from tax revenues. So who or what is Tucson Forward? A misnomer for sure. And thanks to a “media blackout” — their term, not ours — they’ve managed to wage their campaign without scrutiny or much public attention. Even the group’s original public notification for its articles of incorporation as a non-profit were published in Maricopa County in the Record Reporter, a three-daya-week publication printed on 8½-by-11-inch paper that has a total circulation of 61, according to the Arizona Newspaper Association’s annual directory. According to filings with the Arizona Corporation Commission, Tucson Forward was founded in June 2011 with an original board of directors of just one person, a Jessica Rafka, who listed her occupation as an editor for her own firm, Contemplative Editing. Paperwork filed this year shows that she resigned in April, at which time the group’s address was changed from a house on Tucson Boulevard between Grant Road and Glenn Street to a post office box. Currently, all of the other directors of Tucson Forward list addresses in midtown with one thing in common: They live under or near the regular flight path to aircraft landing at Davis-Monthan Air Force Base. Much of the correspondence from Tucson Forward this year came over the signature of Mary Terry Shiltz, president of the board of directors. Shiltz is also the

president of the Broadmoor-Broadway Village Neighborhood, an area of approximately one-quarter square mile. Over the years, Shiltz other campaigns have included an unsuccessful run for a seat on the Tucson Unified School District governing board in 1996 and vice president of the Pima Association of Taxpayers. From their addresses, Shiltz and the other directors of Tucson Forward have obvious reasons for their concerns: they don’t like Davis-Monthan Air Force Base, even if it has been there since 1927. And never mind that the proposal for the F-35s was to locate them at the Air Guard’s 162nd Fighter Wing at Tucson International Airport. Indeed, Tucson Forward’s celebration over the decision that the F-35s will go to Glendale seems to be short-lived. According to its website, the group is mounting a full-scale effort to fight a program at Davis-Monthan called Operation Snowbird that trains pilots from allied nations here. Tucson Forward is classic Tucson decision-making: nothing can be allowed to change even if romantic recollection no longer exists. Despite its near-invisible public profile, it was allowed to portray itself as carrying an opinion representative of the region as a whole. Interesting that just last week, Mayors Satish Hiremath of Oro Valley, Ed Honea of Marana and Duane Blumberg all signed their names to an opinion column in Inside Tucson Business encouraging support for the F-35 coming here. Where were the elected leaders of Tucson or Pima County? Certainly not showing themselves to be leaders. Were they complicit in Tucson’s loss by their lack of support? If, as the Air Force hopes, the F-35 program continues to grow there will be other opportunities to locate a training facility in Tucson. When that happens, Tucson must let the Pentagon and other decision makers know where the majority stands.


InsideTucsonBusiness.com

AUGUST 10, 2012

29

OPINION WAKE UP, TUCSON

Don’t take our word, these rankings speak for themselves In recent weeks you’ve had an opportunity to read on the opinion pages of Inside Tucson Business a debate between our interpretation of the state of business and the economy in Pima County versus the election year version put forth by the county itself. The journey to turning around this county starts first with admitting there are some serious problems. Ignoring these issues will bring more of the same. We love this place but think political decisions and lack of a clear direction has left the Tucson region looking in the rear-view mirror on what could have been. Pima County has been run by a threeperson majority, Democratic-controlled Board of Supervisors for more than a decade and a half and the results speak for themselves. Don’t take our word for it let the rankings speak for themselves:

Contact Joe Higgins and Chris DeSimone at wakeuptucson@gmail.com. They host “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM. Their blog is at www.TucsonChoices.com.

JOE HIGGINS

CHRIS DeSIMONE

ADVOCATING FOR BUSINESS

Rx for city and county goverments: New attitudes I do a lot of listening. In my business, it pays to inquire and discover. Over the past 45 days, I have been on a formal “listening tour” that is part of the Tucson Metro Chamber’s mission to promote a stronger local economy and create more jobs. This most recent tour included 14 stops with members of the Tucson City Council, mayors of all metro municipalities, the Tucson city manager, members of the Pima County Board of Supervisors and the county administrator. I asked a lot of questions. I was especially interested in hearing reactions to a startling statistic presented by economists Marshall Vest and Gerald Swanson from the University of Arizona’s Economics and Business Research Center at their mid-year economic forecasting event. One of the stats in their presentation really hit home: Since August 2010, the state of Arizona has created 75,000 new jobs. More than 69,000 of those jobs were created in the Phoenix metro area. Just 800 were created in the Tucson metro area. When asked for comment, only a few seemed genuinely interested. Some just shrugged. Some wanted to delve into research methodology (as though the wide-

ly respected Vest and Swanson didn’t present reliable research). The exceptions were the townships surrounding Tucson. There I heard about specific plans for MIKE VARNEY thoughtful yet aggressive development of their communities and their respective economies. The townships have strategic plans. They have teams of customer-centric public officials prepared to embrace new business opportunities and serve anyone with an interest in bringing commerce and jobs to their locale. They have dreams about their future and articulate them with ease. These plans include specific measurable performance outcomes, identify the responsible parties and have timelines. The attitude of progress is palpable. To be fair, Tucson and Pima County governments have taken steps intended to promote economic development. Credit should be given where it is due. But the passion is missing.

We need an “all-in” level of enthusiasm to get leaders, department heads and staff at the city and county revved up about growing jobs and promoting a higher level of commerce. Business goes where it is welcomed. A bear hug sends a different message than a pat on the head. In his best-selling book “The Coming Jobs War,” author and chairman of the Gallup Research Corporation James Clifton warns us about the urgency of making economic development and jobs top priorities: “The jobs war is what should get city (and by extension county) leaders up in the morning, what they should work on all day and what should keep them from getting to sleep at night” Cities need to develop a job growth attitude, align their local forces and declare an all-out war. 1. Recognize that the most important solutions are local. Weak local leaders will look to Washington for solutions. 2. The entire city must wage a war for jobs. 3. Align efforts city-wide and include local tribal (business) leaders. 4. Don’t allow your local constituencies to look to Washington, D.C. Free money eventually makes you more dependent. Clearly, what is needed at Tucson City

Hall and in Pima County government is a new attitude. The small steps they have taken to demonstrate connection to economic development and jobs are appreciated, but few are convinced they are doing all they can. Economic development isn’t something that should be “tolerated.” It must be embraced! Over the years, Tucson lost opportunities with Motorola, IBM, Major League Baseball and Raytheon Missile Systems because of less-than-passionate attention to those opportunities. It is time for an attitude adjustment. Let’s end on a high note. I am a big fan of Dr. Martin Luther King. One of his best quotes was: “A nation or civilization that continues to produce soft-minded men purchases its own spiritual death on the installment plan.” I submit that an economic death can be purchased on the same plan.

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


30 AUGUST 10, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Rodney King may have said it best: ‘Can’t we all just get along?’ When it comes to regional planning, the answer all too often seems to be that we cannot – or that we do not. Witness recent squabbles between Tucson and Pima County related to roadway capacity, design and annexation. In its 2030 transit plan, the county had $73 million budgeted for the segment of River Road from Pontatoc to Sabino Canyon roads. In its 2040 plan, that project had disappeared, despite the fact that no work had been done to alleviate the undeniable capacity issue that exists on that stretch of roadway. The stated reason for the removal was that other projects were of a higher priority. The suspected reason is that the decision could be used to leverage opposition to annexation of a part of the segment. Finding himself unable to get permits from the county for a sizable development in one corner of the intersection of Craycroft and River roads, a developer turned to the city and offered to be annexed in exchange for construction permits. So last month, the city council voted 6-1 to approve annexing the southeast corner of that intersection. Mind you, we did not

annex any portion of River Road. We took the developable property and left the transit issue to the county to figure out. The losers are the residents who live in the area, STEVE KOZACHIK and who travel that stretch of road. They were not served well by the vote to annex, nor had they been served well by the failure of the county to have earlier addressed the issue of gridlock along that roadway. Now a similar situation is playing itself out in the Kolb-Valencia roads area. The county is considering transit solutions to a capacity issue that are at odds with the proposed development of a retail and housing project there. The developer is considering annexation simply to avoid having to work with the county. The city will again have an opportunity to either pick up some taxable space and leave the transit issue to the county to figure out, or do the right thing and begin to work

corroboratively across jurisdictions and sort out the issue prior to annexing. These are just two examples of where Tucson and Pima County — and toss in the Regional Transportation Authority (RTA) for good measure — find themselves at cross purposes, unable or unwilling to sort out differences that would reflect a good greater than their own parochial interests. This speaks to the inability of our jurisdictions to come together and work out issues that have regional implications. The Craycroft-River vote was viewed by some as a victory for the city over the county. The criticism I received from some locals who are invested in the results of this year’s Board of Supervisor elections was quick and openly political. I had supported the county. How dare I? That reaction speaks to the fact that far too often our decisions are motivated not by the desire to drop labels and work for broad solutions, but reflect a zero sum opportunity to win one. When that motivation carries the day, taxpayers lose. In reaction to the Craycroft-River annexation, I have invited members from county and city governments, the RTA, the developer, surrounding residents, two

supervisorial districts and one council ward to come and break bread together to work towards a solution that will hopefully serve as a model. What will we be modeling if the meeting is a success? The ability to set aside differences that too often leave one jurisdiction or the other cleaning up a mess created by pure political maneuvering. We need to be better than that, or the community loses. That meeting will be held beginning at 4 p.m. Thursday (Aug. 16) at the Tucson Ward 6 Council office, 3202 E. First St. The affected residents already plan to come out in force to show the electeds and staff they’re tired of the inability of pols and bureaucrats to find solutions. Join us if you’d like to. The words of Rodney King — Can’t we all just get along? —will be the basis for moving the dialogue forward.

Contact Tucson City Councilman Steve Kozachik, who represents mid-town Ward 6, at ward6@tucsonaz.gov or (520) 791-4601.

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Inside Tucson Business 08/10/12