Inside Tucson Business 8/31/12 by Territorial Newspapers

A WILDCAT WELCOME Community turns out to greet new UA Pres. Ann Weaver Hart PAGE 4

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • AUGUST 31, 2012 • VOL. 21, NO. 66 • $1

Long-time TCC exec placed on ‘imposed leave’

Banking on technology UA makes hire for new Tech Launch Arizona center Page 3

By Patrick McNamara Inside Tucson Business

Keep on truckin’ Desert Toyota celebrates rates 40 years in Tucson Page 7

Retail revampp

Mamie Parris stars as Elphaba, the Wicked With of the West, in the return of “Wicked” March 20 to April 7, this time at the Tucson Music Hall, as part of Broadway in Tucson’s 2012-2013 season.

Joan Marcus

Multi-million dollarr renovation creates 200 jobs Page 19

Tommy Obermaier, who was demoted in March from his job as director of the Tucson Convention Center, has now been suspended for an indefinite period of time by the City of Tucson. Obermaier was placed on “imposed leave” Aug. 21 and will remain on leave pending the results of an investigation, according to a memo from Deputy City Manager Liz Miller. City officials would not comment on the nature of the investigation or whether it has broader implications affecting convention center’s operations. City Councilman Steve Kozachik said, based on his own observations, the TCC was plagued with personnel issues. “I’ve met multiple times with multiple tenants and they’ve talked about their problems with getting contracts in a timely manner,” Kozachik said. Other tenants have complained about issues with box office sales, he added. Kozachik said he thought the reduced TCC workforce was being asked to do the same amount of work that a much larger staff had done in years past. The current TCC budget funds 43 fulltime positions. In fiscal 2002, the department had 63 fulltime employees. Convention Center operations receive an annual multimillion dollar subsidy from the city’s general fund to keep it in the black. The total this fiscal year is expected to be more than $2 million. In the 2011 fiscal year, TCC operations brought in $3.4 million in revenue toward a $5.4 million operating budget. The city has identified more than $40 million in needed capital improvements. Among other issues, the foundation beneath meeting rooms on the south side of the TCC were recently found to be sinking. The number of event days booked at the TCC have fallen in years to 916 last year, from nearly 2,800 in 2001. In March, City Manager Richard Miranda named former Tucson Police captain Mark Timpf as head of the TCC in place Obermaier. “To the extent that management changes are necessary,” Kozachik said, “I give the manager high marks.”

2 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

AUGUST 31, 2012

NEWS

Colorado expert tapped to launch Tech Launch Arizona By Patrick McNamara Inside Tucson Business The University of Arizona’s newly established technology commercialization office, called Tech Launch Arizona, has hired its inaugural executive director. David N. Allen comes to Tech Launch Arizona from the University of Colorado where for a decade he was associate vice president for technology transfer. “The opportunity presented by Tech Launch Arizona is very compelling and I’m excited about the possibilities,” Allen said in an interview. In his new position, Allen reports directly to UA President Ann Weaver Hart. The UA created Tech Launch Arizona eight months ago. The office is charged with facilitating commercialization and monetizing technology developed at the UA. To that end, Tech Launch Arizona’s efforts will be coordinated with the UA’s existing Office of Technology Transfer as well as individual departments and the private sector. Some have argued that the UA has been lagging in that regard, especially considering the quality of research that has been developed and what can be expanded upon in the business incubator program at the Arizona Center for Innovation, 9040 S. Rita Road in the UA’s Science and Technology Park. “We want the University of Arizona to have an active part in solving the problems of the world and of the state,” said Rick Myers, chair of Arizona Board of Regents. Myers said the combination of liberal arts, a law college, extensive scientific research and a medical school make the UA one of the most comprehensive in the country. That combination, Myers said, makes it fertile ground for turning theoretical research into practical working solutions.

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

DAVID ALLEN

“(Allen) certainly has the opportunity to make this work and make this work fast,” Myers said. Another element, Myers said, was to create a change in mind set among academics and administrators in the university environment, that in many instances has been resistant to commercialization. “This isn’t a mechanical process, this is a cultural process,” Myers said. “You want to have an environment that encourages industry and university interaction.” While at the University of Colorado, Allen helped create the sort of interaction Myers talked about to increase technology transfer and the revenue it brings in. “In 2002, there was around $1 million in royalty revenue (at Colorado),” Allen said. Over the next decade, revenue to the office increased rapidly, growing to $3.4 million in fiscal 2003 and to $5.8 million in fiscal 2004. Revenue spiked in fiscal 2005, with $21.7 million, the result of several lucrative licensing deals, he said. Since then, licensing revenue has remained strong, with $3.9 million last fiscal year. Over the past decade, University of Colorado Technology Transfer Office was responsible for more than $157 million in

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

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revenue from royalties, fees, payments, monetizations, legal settlements and equity liquidations, Allen said. During Allen’s time in Colorado, the university’s technology transfer office entered into nearly 400 licensing agreements and spun off 66 startup companies. “The situation at the University of Arizona is very similar to where the University of Colorado was in 2002, in that the technology transfer office was under performing and there was an intense desire to see it do better,” Allen said. Revenue for the UA’s tech transfer in fiscal 2011 was $981,495, according to an annual survey conducted by the Association of University Technology Managers (AUTM). Its cumulative revenue for 2009 to 2011 was $2.3 million. Over the same time, revenue recorded at the University of Colorado was $11.1 million. In 2011, UA completed 80 licensing agreements and formed eight startups. Allen said one of the first objectives when he begins at UA will be to create a strategic plan that creates a set of goals for the new office and provides options of how to achieve them. Allen said technology transfer resembles venture capitalism because the revenue streams tend to be “lumpy,” in his words. Like venture capitalism, success comes through making numerous, but wise, investments. “The University of Arizona has many of the requisite ingredients for successful technology commercialization,” Allen said. Allen starts at Tech Launch Arizona Tuesday (Sept. 4).

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

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

Rio Nuevo gives progress report to Senate president In the three months he has chaired the Rio Nuevo Multipurpose Facilities District, Fletcher McCusker says progress has been made through more cooperation with the City of Tucson, increased tax revenue and growing private development in downtown Tucson. In an Aug. 23 memo to state Senate President Steve Pierce, McCusker says Rio Nuevo’s tax increment financing revenues now amount to about $13 million more than expenses and that, all totaled, the district has $32 million on hand, half of which is intended for debt repayment on past bond sales. “We are working with the mayor to try and settle our differences and regain the partnership that is required for the TIF district to work,” McCusker wrote. “A litigious and adversarial relationship will not produce economic development.” McCusker called the previous board’s lawsuits “an ill fated attempt to litigate the City of Tucson into a compliant partnership.” However, McCusker acknowledged Rio Nuevo’s primary charges to improve the Tucson Convention Center and building a downtown convention hotel, remain challenges.

County supervisor candidate targeted in finance complaint Two candidates who lost to Ally Miller in Tuesday’s Republican primary for a Pima County Board of Supervisors seat, have filed campaign finance complaints taking issue with an independent group that paid for advertisements on behalf of her candidacy. Mike Hellon and Stuart McDaniel say Mitch Stallard, one-time executive with shopping center developer Westcor who now runs his own consulting firm, spent as much as $10,000 on advertising supporting Miller. They argue it was unfair coordination because the public relations firm, TagLine Media Group, handled Miller’s election campaign. As a result of Miller’s victory, she now faces Democrat Nancy Young Wright in the Nov. 6 general election. Ann Day, who currently holds the seat, is not seeking reelection.

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com CARTOONIST WES HARGIS

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.

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Biz Buzz Editorial Classifieds

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4 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

NEWS ‘Donut hole’ land sold for $10M in Rancho Vistoso The last tract of undeveloped residential land in the Rancho Vistoso master planned community in Oro Valley has sold for $10 million to a California-based investment/ development group. The parcel is known as the “Donut Hole” because most of the 168-acres are surrounded by fairways of the Rancho Vistoso Golf Course. “This is irreplaceable, infill property with the golf course that wraps around it. We will handle the marketing to home builders,” said Will White of Land Advisors Organization – Tucson, who brokered the deal with Ryan Semro of Land Advisors’ Scottsdale office. “This is a premium location, the homes probably will be move-up product or better.” The purchaser was Vistoso Holdings LLC, San Ramon, Calif. The company is an affiliate of True Life Communities, a real estate investment and management firm with operations in California and Arizona. The seller was Arizona Vistoso Return LLC, Kansas City, Mo. The “Donut Hole” features golf course frontage and natural open space. Tentatively, slightly less than 100 acres will be developed west of Pebble Creek and Desert Fairway drives on the west side of Rancho Vistoso Boulevard. It is zoned for mediumto high-density residential and will take about a year to bring the land to market, White estimated. On the east side of Rancho Vistoso Boulevard, about 70 acres will be left as open space.

UA holds official welcome for new UA president Inside Tucson Business

Pima Community College’s governing board on Monday set out a timeline to find a permanent chancellor with an eye to having someone named by March and on the job in July 2013. A search team headed by Elizabeth Rocklin of R.H. Perry & Associates, an executivesearch firm, will seek to recruit candidates this fall. By December, a search advisory committee made up of members of PCC faculty, staff and administrators, a student and members of the community will select semifinalists. Then in January, three to five finalists will be named after face-to-face interviews with seach advisory committee with interviews the following month by the governing board and other constituencies. The new chancellor will replace Roy Flores, 70, who under terms of an agreement with the governing board agreed to end his affiliation with PCC as of June 30. Flores had been PCC’s chancellor from March 2003 to February 2012. Suzanne Miles, a 26-year veteran of PCC, is serving as interim chancellor. She has said she will not apply to be permanent chancellor.

Gordon Bates

PCC sets timeline to find new chancellor

New University of Arizona President Ann Weaver Hart and her husband Randy were the guests of honor at an official welcome reception Tuesday at the UA’s Student Union Memorial Center ballroom. Among the hundreds in attendance were members of the Arizona Board of Regents, state lawmakers, local government officials and representatives from Gov. Jan Brewer and Congressional offices. Weaver Hart officially took over as the UA’s first woman president July 1. She came from Temple University, Philadelphia, where she was also president. Board of Regent’s Chair Rick Meyers said Weaver Hart was the right candidate for the job because she was “a proven leader.” “We were looking for someone to lead Arizona into the future,” Meyers said. Other attendees gave laudatory welcomes to Weaver Hart including the Thomas R. Brown Foundation’s President Sarah Smallhouse and University of Arizona Alumni Association President Melinda Burke. Weaver Hart has said she intends to become an active part of the larger Tucson community outside the university. While at Temple, she was active in numerous nonprofit organizations and charity groups. She also has said she intends to work closely with the university’s new Tech Launch Arizona, whose executive director David Allen will report directly to her. Weaver Hart has also expressed her intention to further the research efforts at the University of Arizona Medical Center, saying at an initial meeting with the community in February that she sees academic medicine as a key factor to the university’s success. Weaver Hart’s contract includes an annual salary of $475,000, an annual housing allowance of $50,000, a $10,000 car allowance, $20,000 in moving expenses and a $100,000 transition expense payment.

New University of Arizona President Ann Weaver Hart at a reception on campus Tuesday.

Correction Due to a problem receiving complete information, not all of Larsen Baker’s shopping centers were included in the List of shopping centers that appeared in the Aug. 10 issue. An updated List of the Tucson region’s largest shopping centers is on page 8 of this week’s issue and the complete List will appear in the 2013 Book of Lists when it is published in January.

InsideTucsonBusiness.com

AUGUST 31, 2012

NEWS ‘Name’ politicans fall in primary balloting Inside Tucson Business After spending about $8 million of his own money, Mesa businessman Wil Cardon garnered just 21 percent of the vote in the Republican primary for U.S. Senate, losing to U.S. Rep. Jeff Flake. But that wasn’t the only “name” to be eliminated in Tuesday’s Arizona primary election. U.S. Rep. Ben Quayle, son of former Vice President Dan Quayle, won’t be returning to Congress for a second term after losing a fierce Republican primary battle to another freshman congressman, David Schweikert.

As a result of redistricting, Quayle opted to face Schweikert head-to-head rather than run in a separate district that had its boundaries redrawn to become more Democratic. And Russell Pearce, the architect of Arizona’s anti-illegal immigration legislation SB 1070 and employer sanctions law, lost in his bid to return to the state Legislature. Pearce was voted out of office last year in a recall election. As a result of Tuesday’s primary, 28 of the state’s 90 legislative races are now decided — 10 state Senate seats and 18 House seats.

Of those that are now decided in the state Senate, Democrats represent eight seats and Republicans represent four. In the House, Democrats represent eight seats and Republicans represent 10. It’s widely believed that as a result of redistricting, Republicans will lose some of their clout though they are expected to hold on to their majority. For the U.S. Senate seat, Flake now faces former U.S. Surgeon General Richard Carmona, who was unopposed in the Democratic primary for the U.S. Senate being given up by Jon Kyl.

Primaries narrow field to these competitive election races Inside Tucson Business Here are the Nov. 6 general election major competitive races affecting Southern Arizonans as a result of Tuesday’s primary: (Asterisks indicate incumbents in statewide and county races. Incumbents are not noted in Congressional and Legislative districts due to redistricting.) U.S. Senate Richard Carmona, Tucson, Democrat Jeff Flake, Tempe, Republican Congress, District 1 Ann Kirkpatrick, Flagstaff, Democrat Jonathan Paton, Oro Valley, Republican Congress, District 2 Ron Barber, Tucson, Democrat Martha McSally, Tucson, Republican Congress, District 3 Raúl M. Grijalva, Tucson, Democrat Blanca Guerra, Tucson, Libertarian Gabriella Saucedo Mercer, Tucson, Republican Legislature, District 2 House (elect two): Christopher John Ackerley, Sahuarita, Republican Andrea Dalessandro, Green Valley Rosanna Gabaldon, Green Valley, Democrats Legislature, District 4 Senate: Perla Inzunza, Goodyear, Republican (pending verification of sufficient write-in votes) Lynne Pancrazi, Yuma, Democrat Legislature, District 9

Senate: Steve Farley, Tucson, Democrat Tyler Mott, Tucson, Republican House (elect two): Ethan Orr, Tucson, Republican Mohur Sarah Sidhwa, Tucson, Democrat Victoria Steele, Tucson, Democrat Legislature, District 10 Senate: Frank Antenori, Tucson, Republican David Bradley, Tucson, Democrat House (elect two): Todd A. Clodfelter, Tucson, Republican Stefanie Mach, Tucson, Democrat Ted Vogt, Tucson, Republican Bruce Wheeler, Tucson, Democrat Legislature, District 11 Senate: Jo Holt, Oro Valley, Democrat Al Melvin, Tucson, Republican House (elect two): Dave Joseph, Oro Valley, Democrat Adam Kwasman, Tucson, Republican Steve Smith, Maricopa, Republican Legislature, District 14 Senate: Patricia V. Fleming, Sierra Vista, Democrat Gail Griffin, Sierra Vista, Republican House (elect two): David Gowan, Sierra Vista, Republican Robert Leach, Sierra Vista, Democrat David Stevens, Sierra Vista, Republican Mark Stonebraker, Sierra Vista, Democrat

Arizona Corporation Commission (Elect three) Susan Bitter Smith, Scottsdale, Republican Robert “Bob” Burns, Peoria, Republican Marcia Busching, Phoenix, Democrat Sandra Kennedy*, Phoenix, Democrat Paul Newman*, Tucson, Democrat Bob Stump*, Peoria, Republican Pima County Supervisor, District 1 Ally Miller, Republican Nancy Young Wright, Democrat Pima County Supervisor, District 2 James Kelley, Republican Ramón Valadez*, Democrat Pima County Supervisor, District 3 Tanner Bell, Republican Sharon Bronson*, Democrat Pima County Supervisor, District 5 Richard Elías*, Democrat Fernando Gonzales, Republican Pima County Attorney Claudia Elquist, Green Barbara LaWall*, Democrat Pima County Sheriff Dave Croteau, Green Clarence Dupnik*, Democrat Mark Napier, Republican Pima County Recorder Bill Beard, Republican F. Ann Rodriguez*, Democrat Pima County Treasurer Beth Ford*, Republican Elaine Richardson, Democrat

7 races decided in primary Inside Tucson Business Barring any last-minute circumstances, Tuesday’s primary election put the following Southern Arizona candidates into office because none are facing opposition in the Nov. 6 generation election: Legislature, District 2 Senate: Linda Lopez, Tucson, Democrat Legislature, District 3

Senate: Olivia Cajero Bedford, Tucson, Democrat House: Sally Ann Gonzales, Tucson, Demcorat Macario Saldate, Tucson, Democrat Legislature, District 4 House (elect two): Charlene R Fernandez, Yuma, Democrat Lisa Otondo, Yuma, Democrat (With only one Maricopa County precinct yet to report, Juan Carlos “J.C.” Escamilla, San Luis, Democrat, was trailing by

less than 150 votes. But both other candidates were pacing above 36 percent of the county’s vote total compared to Escamilla’s less than 25 percent so the margin was expected to widen.) Pima County Supervisor, District 4 Ray Carroll*, Republican Pima County Assessor Bill Staples*, Republican Pima County School Superintendent Linda Arzoumanian*, Republican * Indicates incumbent in county offices.

This Week’s

Good News They’re baaack! Nearly 40,000 students — maybe even more than 40,000 students when the final numbers are tabulated in October — are back at the University of Arizona, including 7,450 freshmen, which is up more than 150 from last year and the largest incoming freshmen class yet. And they’re smarter, too. The average grade point average for incoming freshmen is 3.44, up from 3.41 in 2011. The average SAT score is 1117 in math and critical thinking, up from 1109 in 2011. The average ACT score is 24. About 4,500, or 61 percent, of incoming freshmen are Arizona residents and close to 3,000 are non-residents, either from other U.S. states or international students. More than 1,100 new students are in the freshman class at the Honors College and more than 1,900 students are transfers from other colleges.

The Tucson

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

One that didn’t get away Tucsonans have been on the receiving end of news stories about how another region snatched away a business, so it was interesting to read a report from the Denver Business Journal about how Tucson lured away Accelr8 Technology Corp. According to the article by Greg Avery, it has a lot to do with incentives. Accelr8 will get up to $2.4 million in building improvements and funding as well as below-market rental rates of $9.25 per square foot for the first three years. That goes up to $19.80 per square foot after the third year. Accelr8 can double its initial space of 15,000 square-feet under the terms of the deal. To get the reduced rate, Accelr8 must hire at least 30 people with a median salary of $70,000 within 18 months of moving in and then maintain that level or grow it. The Denver report also said the Arizona Commerce Authority has pledged a grant of up to $1 million that Accelr8 can use on its product. To qualify for all of the incentives, Accelr8 agreed to: • Relocate from Denver and create 15 jobs averaging wages of at least $63,000 annually and pay at least 65 percent of health insurance premiums. • Within a year surpass 30 new jobs, with the same salary and benefits parameters. • And within two years exceed 40 new jobs, under the same conditions. • At the end of three years create at least 65 such jobs. • Spend at least $4.5 million in capital improvements.

6 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

NEWS Selected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIES Chapter 11 Business reorganization Joshua M. Conzemius and Erica L. Hoffman, 4315 N. Camino Del Obispo. Principal: Joshua M. Conzemius and Erica L. Hoffman, joint debtors. Assets: $790,177.52. Liabilities: $1,357,183.78. Largest creditor(s): Marshall & Ilsley Bank, Brookfield, Wis., $731,878.00 and Bank of America, Simi Valley, Calif., $246,071.00. Case No. 12-18579 filed Aug. 20. Law firm: Eric Slocum Sparks

FORECLOSURE NOTICES No ﬁlings on businesses.

LIENS Federal tax liens Hollis Graphics Inc., 178 E. Broadway. Amount owed: $1,070.47. Carson Concrete & Decking Inc., 3475 N. Dodge Blvd. Amount owed: $26,656.10. Saunmik Investments LLC and Michael Mahaffey and Saundra Mahaffey, 7401 W. Beryllium Lane, Marana. Amount owed: $38,138.00. Baruch Investments Inc. and Michael Mahaffey and Saundra Mahaffey, 7401 W. Beryllium Lane, Marana. Amount owed: $38,138.00. Los Dos Amigos Meat Market Inc., 2949 W. Drexel Road. Amount owed: $7,142.11. Truquest Inc., 5151 E. Broadway, Suite 1290. Amount owed: $54,644.14. Zeb-Tech Services and Al-Tech Inc., 3895A N. Oracle Road. Amount owed: $13,419.60. Snowdriftfarm.com Inc., 4420 N. Highway Drive. Amount owed: $5,763.76. R.A. Plumbing and Ramon Michael Alvarez, 8055 W. Savi Place. Amount owed: $7,363.94.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) LTD Group, 13802 N. Javelina Springs Place, Oro Valley. Amount owed: $30,841.74. Mastermind Electronics, 2200 El Mercado Loop, Sierra Vista. Amount owed: $11,900.57. R&R BBQ Company Togo, 1101 N. Wilmot Road, Suite 119. Amount owed: $8,862.99. Kelly’s Coffee & Fudge Factory and Patrick Martinez & Family LLC, 3538 E. Farrier Drive, Catalina. Amount owed: $26,854.24. Karuna’s Thai Plate and Farrell Karuna, 1917 E. Grant Road. Amount owed: $24,307.60. Kim Melvin Design & Construction, 2991 W. Calle Lucinda. Amount owed: $17,648.53. Ernie’s Midas Auto Service Experts, 1317 E. Fry Blvd., Sierra Vista. Amount owed: $65,572.38. Crossroads Market & Cafe and Crossroads Market LLC, 7 N. Main St., Pima. Amount owed: $16,154.76. Steak Out and Sonoita Mercantile Corp., PO Box 69, Sonoita 85637. Amount owed: $176,980.70. Carson Concrete & Decking Inc., 3475 N. Dodge Blvd. Amount owed: $34,861.56. Mighty’s Sports Grill and Resolute LLC, 515 Pan American Ave., Douglas. Amount owed: $4,143.29. Blue Mesa Studios and Mother Hubbard’s and Little Big Noise LLC, 522½ E. Speedway. Amount owed: $1,329.82. Vistoso Golf Course LLC, 955 W. Vistoso Highlands Drive, Oro Valley. Amount owed: $17,024.09. Arizona National and IRI Sabino Springs Golf Course LLC, 1700 Country Club Drive, Plano, Texas. Amount owed: $37,311.24. Daglio’s Cheesesteaks & Hoagies and Daglio’s LLC, 2574 N. Campbell Ave. Amount owed: $56,391.32. Canoa Hills Golf Course and Canoa Hills Golf Course LLC, 1700 Country Club Drive, Plano, Texas. Amount owed: $6,342.14. San Ignacio Golf Course and San Ignacio Golf Course LLC, 1700 Country Club Drive, Plano, Texas. Amount owed: $16,624.80.

City to fire transportation workers following investigation By Patrick McNamara Inside Tucson Business The City of Tucson has moved to fire at least a half-dozen of its Department of Transportation employees following an investigation into misappropriations over an extended period of time of city materials and equipment. “As city manager, I’m disappointed to have to report this information to you and to our city employees,” Tucson City Manager Richard Miranda said at a Tuesday news conference. Miranda said that despite the allegations and firings, which the employees could decide to contest at pre-discharge hearings, most city employees are honest and hardworking. Officials would not name the employees involved nor disclose the specific allegations of wrongdoing against them, citing confidentiality and privacy issues. At least some of the employees have been on paid administrative leave since the investigation began in September 2011. The allegations against the unnamed employees of the Streets and Traffic Maintenance Division are connected to reports of employees soliciting and accepting side work for road projects and in some cases

sion and have begun training staff on the proper reporting of materials. The city also has hired a new director for the Department of Transportation, Daryl Cole, who started on Aug. 20, permanently replacing Jim Glock, who retired and was not directly connected to any wrong-doing, according to officials. Cole comes to Tucson from the City of El Paso where he was director of that city’s Department of Transportation. The Tucson city employees to be fired had seven days to request pre-discharge hearings where they could contest the terminations. In addition to the employees the city plans to dismiss, several more employees in the Transportation Department face possible discipline and demotions for their involvement. The city also has a separate ongoing investigation into possible related misconduct among employees of the department’s Engineering Division. City officials would not comment whether any of the employees would face criminal prosecutions for their alleged actions.

using city-owned materials such as asphalt to complete the jobs. Mayor Jonathan Rothschild said he called the news conference to show his support for Miranda’s decision on the matter. “Wrongful conduct will not be tolerated by any employee in any city department,” Rothschild said. “We are trying to bring a new day and new age to City Hall.” The meeting also stood as an effort by city officials to get in front of the issue in light of a Nov. 6 city proposition that will ask voters to approve spending $100 million to fix roads. “I have concerns,” Rothschild said when asked if the firings and alleged mismanagement would affect passage of the bond package. Both the mayor and city manager wanted to highlight what they said were positive changes made in the department since the investigation began 11 months ago. “City management has done a whole lot to bring in new processes so that this doesn’t happen again,” Rothschild said. Those changes included hiring of an interim department director, replacing the streets division director, implementing a new time clock, installing GPS devices on vehicles, new material and equipment storage protocols, restructuring the streets divi-

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

McCain: Looming defense spending cuts would harm Arizona By AJ Vicens Cronkite News Service PEORIA — Arizonans celebrating the Pentagon’s decision to base three F-35 fighter squadrons at Luke Air Force Base, heard a warning from U.S. Sen. John McCain that potential defense spending cuts could cost thousands of jobs and $3 billion to the state’s economy. “We need the people of this country to understand the devastation and the inability to defend our nation if these cuts take place,” McCain said after meeting with mayors and other leaders of the area west of Phoenix. Roughly $1.2 trillion in cuts from defense and non-defense programs would begin Jan. 2, 2013, if the president and Congress can’t agree on more than $1 trillion in deficit reductions by the end of the year. The first $110 billion in cuts would take place in 2013, according to the deal struck

Sarah Pringle, Cronkite News Service

PUBLIC NOTICES

U.S. Sen. John McCain explains his concerns that potential defense spending cuts could have on Arizona’s economy.

in 2011 to raise the nation’s borrowing limit. Defense spending would be cut by $55 billion in 2013. Urging Arizonans to pressure their elected leaders and President Obama, Mc-

Cain said both major political parties share some blame, though he said the president should be forcing Congress to resolve the matter. “It requires the president’s leadership,” McCain said. “So far the president’s been A-W-O-L.” The White House Press Office didn’t respond to a request for comment, but Obama told The Virginian-Pilot newspaper Aug. 20 that Republicans’ refusal to raise taxes on wealthier Americans is blocking a deal. McCain cited a 2011 study by George Mason University economist Stephen Fuller estimating that Arizona would lose more than 33,000 jobs and $2 billion in earnings if the mandated cuts take place in 2013. The study, funded by a defense industry trade group, pegged the total loss to Arizona’s gross state product at $2.9 billion. McCain said he’s in favor in savings in defense and domestic spending, “But you don’t want to do it with a meat ax.”

InsideTucsonBusiness.com

AUGUST 31, 2012

PROFILE

Desert Toyota holds steady for 40 years By Christy Krueger Inside Tucson Business A business can go through many changes in 40 years. Thatâ&#x20AC;&#x2122;s the case with Desert Toyota. At the same time, the east side dealership also lays claim to maintaining the same ownership and location through four decades. In April this year, Desert Toyota celebrated its 40th anniversary. Brent Berge opened the dealership in 1972 on the southeast corner of East 22nd Street and Kolb Road, where it remains today. General Manager Bob Rockov said that although Berge lived in Mesa, he graduated from the University of Arizona where he played football and baseball and he wanted a dealership here. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s been driving down every Tuesday for 40 years,â&#x20AC;? Rockov said. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s the most consistent person Iâ&#x20AC;&#x2122;ve ever met.â&#x20AC;? In 1972, Kolb Road was most definitely considered the far-east side. â&#x20AC;&#x153;This was the end of Tucson. But Brent Berge had a vision Tucson would grow, and his vision proved to be correct,â&#x20AC;? Rockov said. â&#x20AC;&#x153;He also opened Berge Mazda in Mesa the same year.â&#x20AC;? Today, the Berge Auto Group includes seven Phoenix-area dealerships. Desert Toyota/ Desert Scion of Tucson is the only Berge location in Southern Arizona. Being practically a relic in car dealer years doesnâ&#x20AC;&#x2122;t mean Desert Toyota looks or acts its age. Rockov explained that it went through

Otis Blank

General manager Bob Rockov

several renovations over the years, but in 2008 the old building was completely torn down and replaced with a new four-story facility. The 260,000-square-foot dealership has an indoor parking garage, a restaurant and room for its 183 employees. Proof that Berge and his people have up-todate attitudes and social values sits on the roof. In May, the business went live with a 120,000watt solar system that is generating a 15 percent electrical savings, according to Jerry Cannella, former general manager of Desert Toyota who now oversees various operations. â&#x20AC;&#x153;This was not just about savings. The significant factor was trying to be environmentally responsible. We wanted to be on the cutting edge,â&#x20AC;? said Cannella, who has been affiliated with Berge and Desert Toyota for almost 40 years.

â&#x20AC;&#x153;We wanted to focus on several worthy causes centered around TMC and UMC because they do so much for so many people,â&#x20AC;? said Cannella regarding Bergeâ&#x20AC;&#x2122;s charitable choices. â&#x20AC;&#x153;He and Dr. Jack Copeland and Sarver Heart Center in conjunction with UA Foundation became very close. Heâ&#x20AC;&#x2122;s a big UA supporter and a great guy. We were one of the first to provvide cars for the early athlletic program in the â&#x20AC;&#x2DC;70s.â&#x20AC;? BIZ FACTS Sustaining this kind of Desert Toyota/Desert Scion llongevity requires more of Tucson tthan just a consistent leadeer. â&#x20AC;&#x153;We have long-term 7150 E. 22nd St. ccustomers who are loyal to www.deserttoyota.com tthe store. Customers come (520) 296-8535 back to us because weâ&#x20AC;&#x2122;re b The solar sysffair. We even have grouptem, he said, is part iies,â&#x20AC;? Rockov maintained, of a bigger picture of sustainability. â&#x20AC;&#x153;We got involved with water telling of a retiree who comes everyday to say harvesting in July 2008, before it was mandated hello and have coffee. The staff doesnâ&#x20AC;&#x2122;t mind. by the city. We wanted to do things that would â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s bought about 20 cars in the 12 years Iâ&#x20AC;&#x2122;ve benefit the environment specific to our part of been here,â&#x20AC;? Rockov said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a wonderful atmosphere,â&#x20AC;? Cannella the world.â&#x20AC;? The company also initiated a recycling added. â&#x20AC;&#x153;I hear compliments about Bob, our program throughout the facility and installed other employees and the store constantly.â&#x20AC;? While Brent Berge has two sons involved in landscaping designed for low-water usage. Early on, Berge became philanthropically the Phoenix dealerships, no family members involved in the community, particularly with are currently in Tucson. But Cannella doesnâ&#x20AC;&#x2122;t Tucson Medical Center and University of Ari- seem concerned about the future of Desert zona Medical Center. Desert Toyota has been Toyota and the Berge familyâ&#x20AC;&#x2122;s ties to the busithe title sponsor of Rock â&#x20AC;&#x2DC;N Rodeo since its ness. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;ll probably continue to drive down inception more than 15 years ago. The annual here every Tuesday for the next 40 years,â&#x20AC;? CanTMC Foundation gala is a fundraiser for Pep- nella predicted. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a safe bet to say that Brent will never retire.â&#x20AC;? piâ&#x20AC;&#x2122;s House hospice.

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8 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

AUGUST 31, 2012

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Summer’s over, lots of events are on tap for September

Big acts wrap up summer at Casino Del Sol’s AVA

Get your calendar out, the fall frenzy of events is about to hit.

Tucson Beer Cup • 7-10 p.m. Sept. 21 at Hotel Congress, 311 E. Congress St. An off-shoot of Hotel Congress’s summer beer tastings is a new “Born & Brewed” event celebrating local breweries as each goes head-to-head in a competition for the people’s choice vote for the Best Brew in Tucson. There will be samples from 1702, Barrio, Borderlands, Dragoon, Nimbus and Thunder Canyon. The winner of the first annual beer cup will get a handle in Hotel Congress’s Tap Room for a year. Tickets are $20 each ($25 the day of the event) and include a keepsake pilsner glass for tastings, 12 tastes of beer and snacks. Buy tickets at Hotel Congress or online at www.hotelcongress.com.

Greek Festival • 5-10 p.m. Sept. 20, 5-11 p.m. Sept. 21, 4-11 p.m. Sept. 22 and noon-6 p.m. Sept. 23 at Saint Demetrios Greek Orthodox Church, 1145 E. Fort Lowell Road The 37th annual festival is four days of music, dancing, cooking demonstrations and, best of all, an array of traditional Greek dishes. There is also a Greek market of food, spices, coffee and candies. Admission is $3 per person per day. Children under 12 and active duty military (with an ID) are free. A four-day pass is available for $5 and those bringing a can of food for the Community Food Bank will receive a $1 coupon (limit one coupon per adult) good toward the purchase of an item from the food line. Details, including information about parking and shuttles, is online at www. tucsongreekfest.com.

Flavors of Tucson • 6:30 p.m. Sept. 27 at Loews Ventana Canyon, 7000 N. Resort Drive Benefitting the American Liver MICHAEL LURIA Foundation, 16 chefs each preparing at least five-course meals for tables of 12. Tickets are $225 each, at www.liverfoundation.org/events/flavors Participating chefs are Jason Jonilonis, Casino Del Sol Resort; Ken Harvey, Loews Ventana; Addam Buzzalini, Maynards Kitchen; Aris Cabrera, Quail Creek Country Club; Ryan Clark, Lodge on the Desert; Serge Delage, Westin La Paloma Resort; Albert Hall, Acacia; Gregg Carra, Hacienda del Sol; Danny Perez, JW Marriott Starr Pass Resort; Jonny Ricketts, Sullivan’s Steakhouse; Ramiro Scavo, Pasco Kitchen; Ethan Schulz, Fleming’s Prime Steakhouse; David Serus, Ritz-Carlton, Dove Mountain; Brian Steiner, Gallery Golf Club; Steven Shimmin, DoubleTree Reid Park; and Jack Tate, Union Public House.

Grape Expectations • 6-10 p.m., Sept. 21, at St. Philip’s Plaza, 4280 N. Campbell Ave. The 10th annual event to benefit Ronald McDonald House Charities offers guests more than 100 wines and food samples from restaurants. Tickets are $100 each. The afterparty at Union Public House is part of a $150 ticket. Buy tickets online at http:// rmhctucson.org/events/grape-expectations

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

The summer concert series at Casino Del Sol’s AVA Amphitheater, 5655 W. Valencia Road, wraps up with a couple of big-name acts over the next two weeks. At 8 p.m. Wednesday (Sept. 5) the legendary trio David Crosby, Stephen Stills and Graham Nash will be on stage. Ticket prices range from $27 for lawn seating up to $176 for a VIP package with extra goodies. Then at 7 p.m. Sept. 12, the stage moves forward to the pop-metal music of the 1980s with a double bill featuring Def Leppard and Poison. Tickets range from $60 for lawn seating up $150 for gold or box seats.

Art The cooperative associates of Tucson Drawing Studio, 33 S. Sixth Ave., open a new exhibit Saturday of images under the title “Capturing Nature’s Light.” Running through Sept. 29, the show features renderings of nature that are only possible when working “plein air” — painting landscapes while outside as opposed to painting them from photographs or other resources. There will be an opening reception from 6-9 p.m. Sept. 8 as part of the monthly “Second Saturdays Downtown.”

Theater Invisible Theatre, 1400 N. First Ave., kicks off its 42nd season Tuesday (Sept. 4) with a production of “Motherhood Out Loud,” a play composed of short narratives about motherhood from a variety of authors and performers. After Tuesday’s preview performance, the play runs evenings Wednesdays through Saturdays and Sunday matinees through Sept. 23.

Film Late August is typically the time when films that Hollywood didn’t know what else to do with are released. So there’s a mixed bag for this Labor Day HERB STRATFORD weekend. Among the offerings: the horror flick “The Possession,” which is loosely based on a real life tale of a possessed object and the damage it does to whomever owns it. Others are the indie comedy “Jessie and Celeste Forever,” with Rashida Jones and Andy Samburg as a divorcing couple who might be changing their mind; and “Lawless,” featuring Tommy guns and an all-star cast including Shia Labeouf, Tom Hardy and Guy Pierce as depression-era bootleggers and G-Men. On a different note, Loft Cinema, 3233 E. Speedway, opens three films of note open. They are “Cosmopolis,” the latest from director David Cronenberg about a billionaire in his limo; “Headshot,” a film from Thailand about a cop turned hitman; and “2 Days in New York,” a comedy with Julie Delpy and Chris Rock.

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 31, 2012

INSIDE TUCSON BUSINESS

FOCUS ON NON-PROFITS

Tragedies started Ben’s Bells and taken it to a national level A pair of Tucson tragedies almost nine years apart – one devastating a family, the other bringing an entire community to tears — came full circle for a brave and selfless Jeannette Maré is founder of Ben’s Bells. woman who turned the horrific events into something positive. Because of her actions, she is affecting lives — both in the Tucson region and around the country — in ways she never dreamed. Three-year-old Ben Maré died suddenly on March 29, 2002. His parents, Jeannette and Dean Maré, were almost too overwhelmed to go on. But when support in the way of kindness began to pour in, their hearts opened BIZ FACTS up. They found healing in the creative act of forming bells Ben’s Bells of control,” she said. o from clay while being sur816 E. University Blvd. A week later, “NBC rounded by others. Nightly News” ran a feature N Jeannette Maré started 40 W. Broadway rreport on Ben’s Bells and Ben’s Bells that year with the www.bensbells.org how it was helping Tucsoh intention of inspiring kindness (520) 628-2829 nans deal with the shooting n in others. Each bell includes a ttragedy. Maré’s phone benote to pass along kindness. Over the years, the organization has become gan to ring. “We got national coverage, and a huge refamiliar to many Tucsonans, but it had response from outside Tucson happened. We mained relatively unknown elsewhere. Then came the shootings at U.S. Rep. Ga- didn’t know how to respond. Other cities brielle Giffords’ constituent event Jan. 8, wanted to make bells themselves.” She said. Now the staff of Ben’s Bells has taken the 2011. While Tucsonans lived through feelings of helplessness and sorrow, Ben’s Bells program to other states including North volunteers went into gear, hanging 1,400 Carolina, New Jersey and Florida. Although the organization had been bells around the city. Maré immediately noticed kindness be- growing steadily, Maré and her board of directors were unprepared for the sudden ing adopted on a community level. “They got the message more clearly. It outside interest and have had to make strawas simple acts of connection that helped tegic decisions on how to proceed. They me, and January 2011 made people feel out hired a consultant and are receiving pro

Otis Blank

By Christy Krueger Inside Tucson Business

bono advice from a local attorney. One of the concerns they face is funding. Ben’s Bells has been mostly self-sustaining. “We’re not grant dependent; we get no state or federal funding,” Maré said. “Forty percent of our funding comes from individuals and 45 percent from the sale of Be Kind merchandise.” In Tucson, Ben’s Bells has two studios where staff members and volunteers make tiles that attach to the bells. Having chapters in additional communities seems to make sense, but opening studios with enough space to house kilns and other equipment takes money. So does hiring staff. “It’s a chicken and egg situation,” Maré noted. “Once they open, they begin supporting the message and the studio. We’re at the point now where it’s a business and we have a recognizable brand, and that takes it up a notch.” Perhaps of bigger concern is maintaining the integrity of the mission and the story

behind it. Questions arise such as how to manage growth, protect the message and keep all components uniform. Dev Sethi, a passionate Ben’s Bells board member and attorney, said tangibles, such as the logo, tile, bell shapes and font can be registered. “The problem is what to do to protect the way of delivering the message. We can’t protect kindness; we don’t want to,” Sethi said. Many Tucsonans are aware of the bell hangings performed twice a year and the weekly bellings in which a deserving person is selected to receive a bell. But perhaps the group’s most important program is Kind Kids. Offered in more than 100 schools in the Tucson region, Kind Kids helps to create a culture of kindness among children. It first came to Sethi’s attention when his daughter, who was nine years old at the time, came home from school and started writing thankyou notes to other kids for being kind. “Ben’s Bells created an environment of empathy, where being kind is expected behavior,” Sethi said. “Now kids who try to bully others are looked at as being outside the norm. Ben’s Bells allows kids to experience what it feels like to be kind to someone else and have others be kind to them.” The organization is taking the Kind Kids initiative a big step further by having social scientists at the University of Arizona and Stanford University perform quantitative studies on how kindness affects people. “Collecting data from kids over time, researchers are testing theories that compassion and kindness increases satisfaction and relationships and health. The real benefits of Ben’s Bells will be 20 years from now when the kids are co-workers and bosses and spouses,” Sethi said.

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InsideTucsonBusiness.com

AUGUST 31, 2012

GOOD BUSINESS GETTING FIT

Tucson’s Y picked to test diabetes prevention program for Disease Control The YMCA of Southern Arizona has and Prevention been chosen to participate in a project to (CDC) led National assess if the YMCA’s Diabetes Prevention Diabetes Prevention Program can lower incidence of type 2 Program, is a diabetes and reduce health care costs. As 12-month evidenceone of 17 Ys participating in the project, if based program that successful, it could potentially save includes 16 weekly millions in future health care costs and core sessions create an infrastructure for how commufollowed by nity based organizations may deliver health DANE WOLL monthly maintecare services to the Medicare population in nance sessions. The the future. program is delivered in a classroom setting by YMCA of the USA (Y-USA), the national trained lifestyle coaches and provides a office for the Y, was named as a preliminary supportive environment where a small group awardee of the Health Care Innovation of individuals work together to learn how Award by the Center for Medicare and healthier eating and increased physical Medicaid Innovation. The award will help activity can help reduce their risk for the YMCA of Southern Arizona recruit and developing type 2 diabetes. Long-term deliver the program to Medicare beneficiaprogram goals include reducing participants’ ries and track health outcomes for those body weight by 7 percent and increasing individuals. physical activity to 150 “We have offered p minutes per week. the YMCA’s Diabetes m BIZ FACTS Because research Prevention Program has shown that since January 2011 h Find out more about the and we’ve seen great YMCA of Southern Arizona’s pprograms like the YMCA’s Diabetes results and will now Y Diabetes Prevention Prevention Program be able to reach even P Program more people in need,” ccan reduce incidence http://tucsonymca.org/social/ of diabetes among said Vivian Cullen, o diabetesPrevention.cfm Medicare-age community outreach M individuals by about director of YMCA of i (520) 623-5511 ext. 218 Southern Arizona. 770 percent (compared “Participating in this tto 58 percent for project will not only help us further prevent younger individuals), the program has been diabetes in a population that is at great risk, identified as a promising approach in lowering Medicare expenditures. but it will help shape the future of how The demonstration project will take place prevention programs are delivered and in 17 communities where the YMCA’s paid for across the nation.” Diabetes Prevention Program is currently The YMCA’s program, part of the Centers

available, but will provide best practices and create an infrastructure for serving the Medicare population that can eventually be leveraged nationally by the Y and other community-based providers of prevention services. Because we know that healthy lifestyles are achieved through nurturing mind, body

and spirit, well-being and fitness at the Y is so much more than just working out.

Contact Dane Woll, president and CEO of the YMCA of Southern Arizona, at DaneW@tucsonymca.org. His Getting Fit column appears quarterly and is next scheduled to appear in the Nov. 30 issue.

(FRQRPLF %HQHÀ WV 19 million dollars in tax revenue annually could help support our police and fire departments, schools and road repair needs. Well-paying jobs will be created, adding 400 jobs to the site per year. An additional 1700 indirect jobs will be created annually.

/RFDOO\ 9HVWHG The Rosemont management team is made up of over 40 of your Tucson neighbors. Ten are Arizona natives and six are UA grads. Many are involved in our community and youth programs.

12 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

MEDIA

July ratings have TV executives scratching their heads By David Hatfield Inside Tucson Business In the first media column I wrote for the Arizona Daily Star in November 1976 — yes, I’m going back nearly 36 years for this — I wrote about “sweeps” ratings months and how TV stations and networks put their marketing efforts into winning them. That’s why we were seeing so many high-profile shows in November and we would again in February and May. I had not met everyone in local media when I wrote that column but the first call I got the morning the column appeared was from Jon Ruby, the general manager at KVOA 4. He was one I hadn’t met yet. I remember he told me, “You made a mistake in the column. There are four sweeps a year. You left out July. It’s not a big deal. Hardly anyone ever pays attention to them. Things can get pretty screwy in the summer, especially around here.” I got to know Ruby better of the years — he was my boss for 21 of those years. He died in May 2011, but if he took a look at the July 2012 Nielsen TV ratings for Tucson that just came he’d know not a lot has changed in 36 years. In fact, these latest ratings are leaving some local TV executives simply not believing them. Word out of one TV newsroom was crew members on one newscast who wanted to celebrate a jump in their ratings were told by management, not to. But when they asked why, the executive told them, “Because we can’t believe they’re real.” Meanwhile, at KOLD 13, researchers have come up with a presentation that indicates Nielsen under-represented viewing to local newscasts by anywhere from about

1,770 households to as many as 13,700 households in one case. The research was based on data collected by Rentrak, a media data firm that started into TV ratings in January 2011. Nielsen and Rentrak have different methodologies. Nielsen’s July sweeps were taken over a four-week period from June 28 through July 25. Rentrak did its calculations based on viewing over five weeks from June 25 through July 29. That means Rentrak’s numbers included the Summer Olympics opening ceremonies and first weekend of coverage. Nielsen basis its estimates from diaries filled out by a selected sample of viewers that changes each week. Rentrak basis its calculations from set-top readings from devices attached to Dish Network subscribers. KOLD’s research says the undercount from Nielsen affected every station in Tucson and nearly all newscasts. There were only two weekday newscasts — “NBC Nightly News” and “ABC World News Tonight,” both at 5:30 p.m. — where Nielsen showed higher viewing than Rentrak. Questions aside over the outcomes, the latest Nielsen ratings produced a rarity — maybe the first in at least 36 years — where every station in the Tucson market could lay claim to having a No. 1-rated newscast. KVOA 4 took the top honors in the earlymorning; KOLD News 13 won at noon, 4 p.m., 6 p.m. and 10 p.m.; KGUN 9 won at 5 p.m. and KMSB Fox 11 won at 9 p.m. Meanwhile, these ratings are likely to be brushed aside with the end of summer as stations and networks get set for the next Nielsen sweeps: Oct. 26-Nov. 21.

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

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TUCSON TV NEWS RATINGS Rating, viewers 25-54* July 2012

May 2012

July 2011

Market share, households * July 2012

May 2012

July 2011

Trend*

5-7 a.m. Monday-Friday KVOA 4

Tucson Today

2.1

1.5

0.8

17.4%

14.8%

12.0%



KOLD 13

News 13 This Morning

1.3

1.9

1.8

17.2%

16.6%

17.2%



KGUN 9

Good Morning Tucson

0.8

0.7

1.5

12.5%

12.6%

14.7%



7-9 a.m. Monday-Friday KVOA 4

Today Show

2.4

2.0

1.4

22.4%

19.8%

18.0%



KGUN 9

Good Morning America

0.8

0.5

1.7

9.0%

11.5%

12.0%



KOLD 13

CBS This Morning

0.6

0.5

6.7%

8.5%

7.3%



KMSB 11

Fox 11 Daybreak **

0.2

0.3

0.7

1.8%

2.0%

3.0%



0.1

0.0

2.1%

3.8%

0.5%



11 a.m. Monday-Friday KGUN 9

The Morning Blend

Noon Monday-Friday KOLD 13

News 13

1.1

0.5

1.1

18.7%

13.2%

16.6%



KVOA 4

News 4 Tucson

0.4

0.8

0.9

13.6%

18.4%

12.0%



4 p.m. Monday-Friday KOLD 13

News 13 **

0.7

0.9

8.4%

6.2%

7.1%



KVOA 4

News 4 Tucson

0.4

0.6

7.8%

6.6%

7.8%



5 p.m. Monday-Friday KGUN 9

KGUN 9 News

2.2

1.2

1.9

15.7%

13.4%

13.0%



KOLD 13

News 13

1.8

1.3

2.1

15.4%

9.2%

13.6%



KVOA 4

News 4 Tucson

1.7

1.9

1.3

16.0%

15.3%

13.0%



NBC-Brian Williams

2.6

2.9

2.0

20.0%

19.0%

18.0%



KOLD 13

CBS-Scott Pelley

1.9

1.4

2.3

12.5%

8.3%

11.0%



KGUN 9

ABC-Diane Sawyer

1.7

1.6

2.5

15.0%

12.8%

13.0%



5:30 p.m. Monday-Friday KVOA 4

6 p.m. Monday-Friday KOLD 13

News 13

1.8

1.6

2.5

10.2%

8.1%

9.9%



KGUN 9

KGUN 9 News

1.6

0.6

2.2

11.9%

10.0%

9.7%



KVOA 4

News 4 Tucson

1.4

2.6

1.8

9.0%

13.6%

10.0%



9 p.m. Monday-Friday KMSB 11

Fox 11 News

1.5

1.3

5.6%

4.7%

5.5%



KWBA 58

KGUN 9 News-CW

0.1

0.3

0.2

0.4%

0.9%

0.6%



10 p.m. Monday-Friday

AFTER

WE CAN HELP.

KOLD 13

News 13

2.4

3.8

3.6

16.9%

21.8%

17.3%



KVOA 4

News 4 Tucson

2.0

2.1

3.5

14.3%

13.8%

15.6%



KGUN 9

KGUN 9 News

1.8

2.1

2.3

14.0%

11.8%

11.2%



* Rating: Each whole rating point represents an estimated 4,230 viewers ages 25-54 in 2012 and an estitmated 4,520 viewers in 2011. * Market share: Percentage of households watching TV at that time that are tuned to the program. * Trend: Year-over-year changes of more than 15% or at least 0.4 of a ratings point in viewers 25-54. ** Fox 11 Daybreak replaced Good Morning Arizona effective Feb. 1, 2012. News 13 at 4 p.m. replaced Oprah Winfrey effective Sept. 1, 2011

Source: Nielsen Viewers In Profile report, July 2012

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InsideTucsonBusiness.com

AUGUST 31, 2012

PEOPLE IN ACTION

NEW HIRES The Pima Air and Space Museum has hired Mark Velbeck to manage the group sales activities. He brings more than 20-years experience in sales and marketing with a primary focus on business-tobusiness sales. Prior to his new role at the Pima Air and Space Museum, Velbeck worked at the ArizonaSonora Desert Museum.

Before moving to Tucson, he worked at the Universal Orlando Resort where he helped develop and implement sales collateral for the launch of a new attraction, â&#x20AC;&#x153;The Wizarding World of Harry Potter.â&#x20AC;? Valor Hospice Care has hired Melissa Phillips as a business development director. Phillips will oversee marketing, community outreach, education and

MARK VELBECK

BRIGHID BROWN

admissions programs. She has more than 16 years of hospice experience. Brighid Brown has been hired as marketing manager for Tucson Mall and Park Place. Brown will be responsible for strategic planning efforts, including overseeing

MAURICIO VALENCIA

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the â&#x20AC;&#x153;People in Actionâ&#x20AC;? button. From there you can submit your announcement and weâ&#x20AC;&#x2122;ll publish it online and in print.

marketing planning, retailer communications, public relations, community relations, event planning and more marketing-related activities. Prior to her current position, Brown served as the marketing specialist and earlier, as the marketing coordinator for Woodfield Mall, one of the

nationâ&#x20AC;&#x2122;s largest shopping centers. Before joining Woodfield Mall, Brown was the marketing coordinator for Dobbe Marketing & PR, a firm based in Crystal Lake, IL. Brown holds a bachelorâ&#x20AC;&#x2122;s of arts degree in corporate communications from Northern Illinois University, DeKalb, Ill. Northwest Allied Physicians has hired family medicine physician

70 years

still counting.

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Mauricio Valencia, M.D., as the newest member of its medical staff. Valencia specializes in family medicine with an emphasis on preventive and holistic medicine. Valencia received his medical degree from the University of California Los Angeles and completed his residency at Glendale Adventist Medical Center in Glendale, Calif.

14 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

ARTS & CULTURE SPECIAL

Extraordinary performances highlight Tucson’s art season By Herb Stratford It sounds like a bad cliché, but Tucson really is home to an embarrassment of riches in regards to our performing arts. With the 2012-2013 seasons set to begin next month, this is a brief look at what is coming up on stages across the region. The range of events this season is extraordinary and includes world-class visiting artists, Arizona premieres and something for every member of the family. For the purposes of this preview, we are looking at nine of the “major” entities in Tucson and offering a snapshot of their upcoming offerings. In my regular weekly column over the coming months, I’ll will go into detail on specific shows.

non-conventional music and acrobatics. Also on the schedule this season is the return of “Wicked” in late March and early April, this time at the Tucson Convention Center’s Music Hall as opposed to Centennial Hall. Audience favorite “Blue Man Group” will be on stage in late April. The season also will include a revival of the classic revival musical “Anything Goes” in November and recent Tony Award-winning musical “Memphis” in late February-early March. The show that seems to have Broadway in Tucson General Manager Lendre Kearns most excited, is a joint presentation with UApresents of Carol Burnett on Jan. 28. The one-night event has been two years in the making and invites audience members to ask questions of the famed comedienne. Most Broadway in Tucson presentations are at the Music Hall in the Tucson Convention Center, 260 S. Church Ave., though Carol Burnett show will be at Centennial Hall, 1020 E. University Blvd. on the UA campus. • Broadway in Tucson — www.BroadwayInTucson.com

Tucson Jazz Society

Arizona Opera

The Jazz Society is an organization that continues to feature an amazing array of shows featuring local and national talent. Executive Director Sandy Riser says this season’s diverse and unique programming literally has “something for everyone.” The seventh annual New Year’s Eve event again will bring in big-name acts and there will be a new event in March called “Jazz Del Sol” featuring performances of both jazz and blues at AVA Amphitheater at Casino Del Sol. Additionally, the jazz society puts on regular shows featuring local talent. The New Year’s Eve event takes place at the JW Marriott Starr Pass Resort and Spa, 3800 W. Starr Pass Blvd.; Casino Del Sol is at 5655 W. Valencia Road, and Tohono Chul Park is at 7366 N. Paseo Del Norte, northwest of the intersection of Oracle and Ina roads. • Tucson Jazz Society — www.TucsonJazz.org.

The fiery heroine, Lucia, exchanges rings with her family’s enemy, Sir Edgardo, pitting her in the cross hairs of a duel between family honor and secret passion 17th century Scotland in Arizona Opera’s presentation of Gaetano Donizetti’s “Lucia di Lammermor” Oct. 6 and 7.

Arizona Opera

Broadway in Tucson

According to Arizona Opera General Director Scott Altman, opera is perhaps the “highest art form” in that in encompasses many other art forms including music, dance and theatre. With a great mixture of classics and cutting edge operas not recently seen on stage in Tucson, this season appears to have something for everyone. Opening the season Oct. 20, according to Altman, is a “tour de force” performance of “Lucia di Lammermor,” starring rising star guest soprano Lisette Oropesa, making a return to the Tucson stage. Up next are “Romeo et Juliette” in November and “Tocsa” at the beginning of February. “Il Trovatore” follows in March and wraps up in April with a season ending “Marriage of Figaro,” arguably one of the finest operas ever written All performances are at the Music Hall in the Tucson Convention Center, 260 S. Church Ave. • Arizona Opera — www.azopera.com/

Comedienne Carol Burnett will interact with the audience as part of a joint presentation of Broadway in Tucson and UApresents Jan. 28 at Centennial Hall.

Broadway In Tucson This season, Broadway In Tucson’s eighth, features a mixture of shows. Opening in September, for an abbreviated run is “Stomp,” the Broadway favorite featuring a rousing mixture of

The Eroica Trio will perform a special recital at the Tucson Symphony Orchestra.

Tucson Symphony Orchestra Symphony Executive Director Andrew Birgensmith has some exciting offerings for 20122013 season. The classic series includes crowd-pleasures such as the return of acclaimed violinist Joshua Bell Feb. 16 and the Eroica Trio performing Beethoven’s triple concerto performing opening weekend, Oct. 5 and 7. An all-new Pops! Show, “The Magic of Christmas” will feature the symphony playing with the TSO Chorus and Tucson Boys Chorus and other guests. Rounding out the season are some special shows including a March 16 concert by the group Pink Martini, whose music is internationally influenced, and a TSO Pops! presentation Jan. 26 27 called “Ballroom with a Twist,” which combines world-class ballroom dancing, music and more. The venue for the classic series and the TSO Pops! is the Music Hall at the Tucson Convention Center, 260 S. Church Ave.; the MasterWorks series chamber orchestra performs in the auditorium at Catalina Foothills High School, 4300 E. Sunrise Drive; a series of concerts for children take place on Saturdays at the Tucson Symphony Center, 2175 N. Sixth Ave.; and there will even be a couple of TSO Rocks the Fox concerts (one in October paying tribute to Michael Jackson and the Jackson Five and one in April paying homage to Freddie Mercury and Queen) at the Fox Tucson Theatre, 17 W. Congress St. • Tucson Symphony Orchestra — www.TucsonSymphony.org

see FALL ARTS on PAGE 16

InsideTucsonBusiness.com

AUGUST 31, 2012

2012-13 SEASON On Sale Now!

†

SEPTEMBER Bonnie Raitt

OCTOBER

The Daily Show Live: “Indecision Tour 2012” Shaolin Warriors Lang Lang

NOVEMBER

LANG LANG

Aszure Barton & Artists Mummenschanz David Sedaris Sybarite5*

Date

Time

09/26/12

7:30pm

Fri. Sun. Sun.

10/19/12 10/21/12 10/28/12

8pm 3pm 7pm

Sat. Sat. Tues. Thurs.

11/03/12 11/17/12 11/27/12 11/29/12

8pm 8pm 7:30pm 7:30pm

Sun.

12/16/12

7pm

Fri. Sat. Sat. Sat. Sun. Sun. Sun. Sat. Sat. Sun.

01/11/13 01/12/13 01/12/13 01/12/13 01/13/13 01/13/13 01/13/13 01/19/13 01/26/13 01/27/13

7pm 1pm 4pm 7pm 1pm 4pm 7pm 8pm 8pm 4pm

KATHLEEN BATTLE

DECEMBER

Celtic Woman: A Christmas Celebration – The Symphony Tour

JANUARY

Zoppé Family Circus**** Zoppé Family Circus**** Zoppé Family Circus**** Zoppé Family Circus**** Zoppé Family Circus**** Zoppé Family Circus**** Soledad Barrio's Noche Flamenca Chick Corea and Gary Burton*** Laughter and Reflection with Carol Burnett Harold and the Purple Crayon

FEBRUARY

MOMIX: “BOTANICA”

Day Wed.

Vancouver Symphony Orchestra Alonzo King LINES Ballet Nathan Gunn* UA Dance: "Premium Blend"** John Pizzarelli Quartet*** From the Top Live with Christopher O'Riley Barbara Cook*** MOMIX: "Botanica" Bridget Kibbey “Music Box”*

Fri. 02/01/13 8pm Sun. 02/10/13 7pm Thurs. 02/14/13 7:30pm 4 performances 02/14 – 02/17/13 Sat. 02/16/13 8pm Sun. 02/17/13 4pm Fri. 02/22/13 8pm Sun. 02/24/13 7pm Thurs. 02/28/13 7:30pm

CHRIS BOTTI

MARCH

UA Dance: "Premium Blend"** 4 performances 02/28 – 03/3/13 Academy of St. Martin in the Fields Tues. 03/05/13 7:30pm Wynton Marsalis and the Jazz at Lincoln Center Orchestra Sat. 03/09/13 8pm The Underground Railroad, An Evening with Kathleen Battle Fri. 03/22/13 8pm Come to the Cabaret!** Sat. 03/23/13 6:30pm Limón Dance Company Sun. 03/24/13 7pm

CAROL BURNETT

Co-presented by UApresents and Broadway in Tucson

APRIL

Chris Botti FELA! FELA! FELA! Lila Downs*** Les Ballets Trockadero de Monte Carlo

Sun. Fri. Sat. Sat. Sun. Sat.

04/07/13 04/12/13 04/13/13 04/13/13 04/14/13 04/20/13

7pm 8pm 2pm 8pm 7pm 8pm

LILA DOWNS

† Restrictions apply. Savings in sections “B,” “C,” “D” and “E” only. *Crowder Hall **Eller Dance Theatre ***Fox Theatre ****Reid Park

Most performances at UA Centennial Hall

UApresents.org

(520) 621-3341

16 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

FALL ARTS continued from PAGE 14

• Invisible Theatre — www.InvisibleTheatre.com

Arizona Theatre Company

Ed Flores

With three plays making their Arizona premieres, the season will introduce audiences to exciting new works such as “Lombardi” about the legendary football coach running Oct. 20 to Nov. 10 and “Nest to Normal” a musical about suburban crisis running Sept. 15-Oct. 6. A new look at a classic tale, “Jane Austen’s Emma,” will be on stage from Dec. 1-22. Combine those with the Neil Simon claissic “The Sunshine Boys” March 2-23;) the OffBroadway show about psychoanalysis “Freud’s Last Session” Jan. 19-Feb. 9; the drama-comedy about real estate “Clybourn Park” April 6-27; and you can see why this is going to be a season of diverse plays at Arizona Theatre Company. Artistic Director David Ira Goldstein says he’s “feeling electric” about the upcoming season that he describes as “wildly different genres, but artistically accessible.” Performances in Tucson are at the Temple of Music and Art, 330 S. Scott Ave. • Arizona Theatre Company — www.ArizonaTheatre.org

Winner of three Tony awards, “Fela!” will be on stage at Centennial Hall for three performances, April 12 and 13.

Nine-time Grammy winner Bonnie Raitt is the Sept. 26 season opener for UApresents.

UApresents Jenna Johnson and Daniel Precup perform in “Pasión Argentina.” This season, Ballet Tucson will present the premiere of another tango piece, “Passionately, Piazolla!”

Ballet Tucson Founding Artistic Director Mary Beth Cabana and Ballet Tucson have a pretty exciting and unique show on their schedule, both groundbreaking and fun. Entitled “Passionately, Piazzolla!” the work is a collaboration with Chamber Music Plus and the Tucson Guitar Society that will celebrate and illustrate the genius that is the music of Astor Piazzolla and tango dancing. Part of the inaugural Tucson Song Festival, this event bends music, dance and song in a way that you have never seen before. The haunting music of Piazzolla, long considered the godfather of tango, will be familiar to many, but the show Ballet Tucson has in store should be spectacular. It will be at the Temple of Music and Art, 330 S. Scott Ave., from Feb. 15-17. Ballet Tucson venues also include the Stevie Eller Dance Theater, 1737 E. University Blvd. on the east mall of the UA campus, and Centennial Hall, 1020 E. University Blvd. • Ballet Tucson — www.BalletTucson.org

Invisible Theatre Perhaps the most unique event on Invisible Theatre’s schedule this season is “Hollywood Revisited” which combines music, performance and vintage Hollywood costumes. Featuring Greg Schreiner at the piano, and his world famous vintage movie costume collection worn by performers singing the songs from the films in which they were used, this is a multi-genre event. There will be only one show, Dec. 16, at the Berger Center for the Performing Arts, 1200 W. Speedway on the campus of the Arizona State School for the Deaf and the Blind. Invisible Theatre’s 38-year grand dame and Artistic Director Susan Claassen has a few other surprises up her sleeve, along with a season of Arizona premieres as the venerable theatre company enters its 42nd season in Tucson. The Invisible Theatre’s primary venue is at 1400 N. First Ave.

Executive Director Chuck Tennes can’t pick out a favorite show in UApresents’ upcoming season, and how could he with 34 different acts hitting stages in the coming months? He did confess he’s excited about their opening musical shows featuring singer songwriter Bonnie Raitt on Sept. 26 and piano phenom Lang Lang on Oct. 28. He’s also equally looking forward to the staging of the Broadway hit “FELA!” April 12 and 13 at Centennial Hall. The musical celebrates the life of a Nigerian dissident, and ends a dry spell of sorts for UApresents in terms of presenting Broadway shows. Most UApresents events are in Centennial Hall, 1020 E. University Blvd. on the UA campus, but some take place in Crowder Hall, 1017 E. Olive Road in the School of Music building on campus, and at Stevie Eller Dance Theater, 1737 E. University Blvd. • UApresents — www.UApresents.org.

Rogue Theatre Fresh off of their exciting international performance trip to India, the artists at the Rogue Theatre Company are coming back with a series of five compelling works this season. Both Artistic Director Joseph McGrath and Managing Director Cynthia Meier are eager to show Tucson their first production of the season, “Journey to the West,” which tells the tale of a 16th century monk traveling from China to India. Packed with “fantastical characters,” the play is both philosophical and beautiful while it is also very theatrical. Another exciting development for Rogue this season is the addition of a resident company of actors—11 in all—who will perform in all works this year. This is a first for the Rogue, and a milestone for the company and the actors, in that they all will be working as a troupe on all productions. Performances are at the Historic Y, 300 E. University Blvd. • The Rogue Theatre — www.TheRogueTheatre.org Whew, that’s a lot of worthy performances this season. Hopefully you can catch a few. While we’ve touched on some of the biggest organizations, there are many other great groups in Tucson who also will be presenting unique and interesting work this season.

Contact Herb Stratford at herb@ArtsandCultureGuy.com. Stratford teaches arts management at the University of Arizona.

InsideTucsonBusiness.com

AUGUST 31, 2012

BRIEFS GET ON THE LIST

Next up: Minority-owned business, Exporters 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: • Sept. 7: Television stations, Radio stations • Sept. 14: Minority-owned businesses, Exporters • Sept. 21: Locally-owned restaurants, Chain-owned restaurants • Sept. 28: Commercial printers, Copying/Duplicating firms, Mailing service firms, Promotional product suppliers • Oct. 5: Home builders, Custom home builders, Largest apartment complexes If your business fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

NEW IN TOWN

Family dentistry office opens in Sonoita Santa Cruz Family Dentistry has opened at 3121 Highway 83, Suite D, in Sonoita. Dr. Christina Pace is seeing patients on Mondays, Tuesays and Fridays in the stateof-the-art office in a refurbished building. Pace, who grew up in Tucson, graduated from the University of Arizona and earned her dental degree from the University of Southern Califonria in 1988, relocated to Sonoita last November. “With Santa Cruz Family Dentistry now

open, one of my primary goals is to ensure that high-quality, affordable and compassionate dental services are available in the local community,” she said in an announcement of the opening of her new office. Pace welcomes children and adult patients for routine and emergency visits as well as patients who require dentures, bridges and other prosthodontics. Contact the office at (520) 455-9230 to schedule an appointment.

the College of Engineering and McGuire Center for Enterprise are both finalists for Innovator of the Year in Academia. Arizona State University’s School of Life Sciences is also a finalist. The awards, presented annually by the Arizona Technology Council and the Arizona Commerce Authority, will be handed out this year in ceremonies Nov. 8 at the Phoenix Convention Center. Details about the event are online at www.aztechcouncil.org.

TECHNOLOGY

COMMERCIAL REAL ESTATE

Tucsonans among finalists for state technology awards

Transwest faces auction of large land parcel

IBM, two smaller Tucson firms and some University of Arizona researchers are among those named this week as finalists in the Governor’s Celebration of Innovation, the annual contest honoring the technology industry in the state. IBM’s Tucson operation was among three firms picked to be finalists in the category of large company Innovator of the Year. The other two firms named finalists are American Express, Phoenix, and Enghouse Interactive, Phoenix. The Solar Zone at the University of Arizona Science and Technology Park and Tucson Embedded Systems, 5620 N. Kolb Road are both in the running for Green Innovator of the Year, given to companies to recognize their work in sustainable fields. A third company, Ecotality Communications, Phoenix, is also in the running. Other Southern Arizona finalists are: • Northrup Grumman Technical Services STEM Innovation Campus Project, Sierra Vista, for Pioneering Award, for advancements in technology. Other finalists are IO and Signature Technology Group, both Phoenix. • The University of Arizona’s Department of Electrical and Computer Engineering in

A large tract of vacant land on the far west side, owned by an affiliate of financially troubled Transwest Partners, is in default and scheduled to be sold at public auction in November. Located at 4545 W. Ajo Highway, the approximate 30-acre parcel has an original principal balance of $2.5 million, according to public records. The land is owned by Transwest Camino de Oeste LLC, an affiliated business of Transwest Partners LLC of Tucson, whose principals are Michael J. Hanson and Randal G. Dix. The site is southwest of the intersection of West Ajo Highway and South Camino de Oeste. Transwest Partners has experienced financial problems on several acquisitions it made during the peak of the real estate market about five years ago. Some of those properties were placed into voluntary bankruptcy protection, and/or sold. Transwest’s troubled Tucson portfolio includes the Doubletree Hotel at Reid Park, 445 S. Alvernon Way; three properties near North Oracle and Rudasill roads, La Posada Lodge & Casitas, Hampton Inn & Suites and Marriott TownePlace Suites and the Gallery Row center at the northeast corner of Skyline Drive and Campbell

Avenue. This year, Transwest’s interest in Westin La Paloma Resort and Spa was sold in bankruptcy court. The law firm of Waterfall, Economides, Caldwell, Hanshaw & Villamana is handling the trustee’s sale. The land is scheduled to be sold at 11:30 a.m. Nov. 21 at the Pima County Courts Building, 110 W. Congress St.

EDUCATION/RESEARCH

UA to lead 5-year, $5M solar research project The University of Arizona will lead a fiveyear, $5 million research project to find new solutions to for concentrated solar power. The grant, announced Tuesday, is part of the U.S. Department of Energy’s SunShot Initiative, which is seeking to make solar power cost competitive. UA researchers will team with researchers at Arizona State and Georgia Tech universities to develop new fluids based on molten salt that would be used in place of traditional heat-transfer fluids. The fluids are used in concentrated solar power systems when a power plant’s mirrors reflect the sun’s light onto tubes carrying that material. It is transported to the plant’s generation unit, where it is used to boil water to make steam that in turn runs the turbines and produces the power. Molten salt is being used in concentrated solar power plants as a storage method, notably in Abengoa Solar’s Solana Generating Station near Gila Bend. The idea behind the grants is to find a fluid that can generate higher temperatures and lead to greater efficiencies in CSP production, thus lowering the cost. The University of California, Los Angeles also received a $5 million, 5-year grant. It will team with Yale University and the University of California, Berkeley to look at using liquid metals as a fluid.

18 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

FINANCE

CBO issues gloomiest estimate yet on impact of ‘fiscal cliff ’ By David Grant The Christian Science Monitor Every time the Congressional Budget Office recalibrates its projections for the economic impact of the nation’s impending “fiscal cliff,” the picture gets bleaker. That’s the headline news from the CBO’s latest update issued this month on its budget outlook for the next decade: The $560 billion mix of spending cuts and tax hikes that make up the year-end fiscal cliff will “probably” cause a recession in 2013, as the economy would shrink by 0.5 percent for the year. And not only are the impacts of going over the cliff worse, but the CBO also believes the American economy will be weaker overall even if Congress punts on all of the nation’s pressing issues of taxing and spending by pushing off the expiration of tax breaks and the beginning of spending cuts for a year or longer. Why? First, the economy is not moving as quickly as the CBO expected it would early in 2012. Second, policies enacted after the CBO’s early-year forecast, such as a one-year extension of the payroll tax cut and emergency unemployment benefits, helped GDP growth this year but their expiration at year’s end will lower it in 2013. Moreover, uncertainty about how the fiscal cliff will play out is already hurting spending by both businesses and consumers. The CBO’s 2012 economic outlook holds that some households will “probably pull back on spending later in the year in response to rising concerns about the effects of the future fiscal tightening.” Likewise, while business investment is currently growing “strongly” and is “supported by favorable conditions in markets for corporate borrowing,” it is also being “restrained by businesses’ concern about possible major changes in fiscal policies.” Economists generally are ascribing at least some part of the slowing economy to uncertainty over the fiscal cliff. Congress’ nonpartisan budget analysts now project the economy will contract by 0.5 percent between the fourth quarter of

this year and the same quarter in 2013, if the economy is allowed to sustain some $560 billion in higher taxes and lower spending. In May, the CBO said the economy would shrink by 1.3 percent in the first half of next year before rebounding to 2.3 percent growth in the second half for a yearly gain of 0.5 percent. In January, the CBO estimated that the economy would grow by 1.1 percent even if it went off the fiscal cliff. Going off the fiscal cliff would increase the unemployment rate a notch more than previously expected. Without congressional action, unemployment would breach 9 percent come December of 2013. Previously, CBO expected it to come in at 8.8 percent. Even if Congress pushes off a reckoning with these budget issues for a year or longer in order to give them even more time to negotiate a solution, CBO believes the economy will be weaker next year than it previously thought. Annual economic growth with a congressional punt on the fiscal cliff would hit an anemic 1.7 percent in 2013 versus the CBO’s May estimate of 4.4 percent growth. A 1.7 percent growth rate would be slower than the 2.1 percent growth the CBO expects the economy to clock in at this year. As in previous reports, the CBO noted that allowing the tax hikes and spending cuts of the fiscal cliff to come to pass will dramatically shrink the nation’s deficit in coming years. In 2013, for example, the deficit would be $641 billion (or 4 percent of GDP) if the US hits the cliff head-on versus an estimated deficit of $1 trillion (6.5 percent of GDP) if current taxing and spending policies are extended. Allowing fiscal cliff-like fiscal policy to continue for the next decade would lower US deficits to just 0.9 percent of GDP in 2022 with the nation’s overall debt falling from 77 percent of GDP in 2014 to 58 percent in 2022. That’s versus a deficit averaging 5 percent of GDP over the next decade if current tax laws are extended and spending cuts are eliminated, with America owing 90 percent of its GDP in debt come 2022.

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

Company Name

Symbol

Aug. 29 Aug. 22 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.04 0.02 11.57 40.78

0.04 0.02 11.60 40.05

0.00 0.00 -0.03 0.73

0.03 0.01 8.35 34.28

0.44 0.10 15.94 42.10

8.54 0.45 2.74 8.00 58.83 7.31 84.55 18.21 58.31 3.52 17.41 29.91 33.95 27.16 32.49 15.60 97.11 41.38 45.43 8.61 75.84 57.55 18.75 35.58 28.15 56.84 58.73 195.08 33.00 59.01 5.63 37.30 33.09 10.84 52.30 22.15 1.43 32.22 28.34 40.37 59.79 40.47 37.60 36.22 46.38 67.25 26.23 13.40 56.74 45.30 15.58 40.90 57.45 8.71 8.89 43.03 31.59 64.26 16.80 29.40 41.85 18.33 122.78 26.55 10.45 33.50 72.77 35.30 34.07 9.20 19.30

8.97 0.49 2.81 8.22 58.19 7.30 85.69 17.72 57.56 3.61 17.89 30.49 33.97 25.91 32.94 15.34 95.53 41.51 45.70 9.53 74.92 57.51 19.00 37.00 26.51 56.64 58.88 197.25 32.86 59.65 5.65 37.83 33.37 10.74 51.49 21.96 1.57 32.35 27.24 40.44 57.36 39.33 37.24 37.85 46.88 68.34 24.40 13.29 55.81 45.29 15.97 41.16 55.94 8.67 9.32 42.93 31.72 63.68 16.75 29.38 42.19 19.35 124.69 27.95 11.61 32.90 71.77 35.55 34.18 9.31 19.33

-0.43 -0.04 -0.07 -0.22 0.64 0.01 -1.14 0.49 0.75 -0.09 -0.48 -0.58 -0.02 1.25 -0.45 0.26 1.58 -0.13 -0.27 -0.92 0.92 0.04 -0.25 -1.42 1.64 0.20 -0.15 -2.17 0.14 -0.64 -0.02 -0.53 -0.28 0.10 0.81 0.19 -0.14 -0.13 1.10 -0.07 2.43 1.14 0.36 -1.63 -0.50 -1.09 1.83 0.11 0.93 0.01 -0.39 -0.26 1.51 0.04 -0.43 0.10 -0.13 0.58 0.05 0.02 -0.34 -1.02 -1.91 -1.40 -1.16 0.60 1.00 -0.25 -0.11 -0.11 -0.03

7.97 0.20 1.48 4.92 50.95 5.30 65.35 16.25 43.82 3.30 12.30 21.40 19.72 14.61 22.19 8.49 76.59 31.16 32.28 6.64 40.01 43.64 8.03 28.85 17.50 31.03 41.22 158.76 27.10 44.82 2.69 27.85 25.73 5.02 42.14 20.98 0.49 12.14 18.28 32.90 38.64 24.20 25.49 13.68 33.20 49.97 19.06 3.29 38.35 36.50 14.73 31.00 28.89 6.25 7.15 34.24 20.96 47.25 14.04 24.34 28.26 15.51 77.73 25.77 3.96 20.75 49.94 28.53 22.61 4.44 13.18

12.93 3.73 4.30 10.10 62.80 9.94 86.01 28.53 60.00 5.29 21.16 38.40 35.16 28.79 33.80 15.84 97.76 43.43 48.69 12.25 76.48 67.20 19.35 48.96 30.49 57.18 62.00 210.69 34.77 62.33 5.85 46.49 35.86 13.12 56.66 24.83 1.81 32.85 32.29 41.80 62.83 42.17 40.45 38.65 48.31 70.20 43.18 13.91 56.92 46.40 23.16 42.31 85.90 14.32 10.05 46.08 32.99 64.99 18.66 34.24 43.05 25.84 126.91 58.29 14.51 34.10 75.24 37.61 34.80 9.92 22.81

Southern Arizona presence Alcoa Inc (Huck Fasteners) AA AMR Corp (American Airlines) AAMRQ Augusta Resource Corp (Rosemont Mine) AZC Bank Of America Corp BAC Bank of Montreal (M&I Bank) BMO BBVA Compass BBVA Berkshire Hathaway (Geico, Long Cos) BRK-B* Best Buy Co Inc BBY BOK Financial Corp (Bank of Arizona) BOKF Bombardier Inc* (Bombardier Aerospace) BBDB CB Richard Ellis Group CBG Citigroup Inc C Comcast Corp CMCSA Community Health Sys (Northwest Med Cntrs) CYH Computer Sciences Corp CSC Convergys Corp CVG Costco Wholesale Corp COST CenturyLink (Qwest Communications) CTL Cvs/Caremark (CVS pharmacy) CVS Delta Air Lines DAL Dillard Department Stores DDS Dover Corp (Sargent Controls & Aerospace) DOV DR Horton Inc DHI Freeport-McMoRan (Phelps Dodge) FCX Granite Construction Inc GVA Home Depot Inc HD Honeywell Intl Inc HON IBM IBM Iron Mountain IRM Intuit Inc INTU Journal Communications (KGUN 9, KMXZ) JRN JP Morgan Chase & Co JPM Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN KB Home KBH Kohls Corp KSS Kroger Co (Fry's Food Stores) KR Lee Enterprises (Arizona Daily Star) LEE Lennar Corporation LEN Lowe's Cos (Lowe's Home Improvement) LOW Loews Corp (Ventana Canyon Resort) L Macerich Co (Westcor, La Encantada) MAC Macy's Inc M Marriott Intl Inc MAR Meritage Homes Corp MTH Northern Trust Corp NTRS Northrop Grumman Corp NOC Penney, J.C. JCP Pulte Homes Inc (Pulte, Del Webb) PHM Raytheon Co (Raytheon Missile Systems) RTN Roche Holdings AG (Ventana Medical Systems) RHHBY Safeway Inc SWY Sanofi-Aventis SA SNY Sears Holdings (Sears, Kmart, Customer Care) SHLD SkyWest Inc SKYW Southwest Airlines Co LUV Southwest Gas Corp SWX Stantec Inc STN Target Corp TGT TeleTech Holdings Inc TTEC Texas Instruments Inc TXN Time Warner Inc (AOL) TWX Ual Corp (United Airlines) UAL Union Pacific Corp UNP Apollo Group Inc (University of Phoenix) APOL US Airways Group Inc LCC US Bancorp (US Bank) USB Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT Walgreen Co WAG Wells Fargo & Co WFC Western Alliance Bancorp (Alliance Bank) WAL Zions Bancorp (National Bank of Arizona) ZION Data Source: Dow Jones Market Watch *Quotes in U.S. dollars, except Bombardier is Canadian dollars.

InsideTucsonBusiness.com

AUGUST 31, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Retail center rebuild brings 200 jobs, $4 million tween Interstates 10 and 19. Due to a timing quirk for “active” listings, more houses sold there in July.

By Roger Yohem Inside Tucson Business

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

TUCSON REAL ESTATE

8/20/2012

8/13/2012

$134,250 4,087 337 333 222

$134,900 4,114 350 390 213

Source: Long Realty Research Center

High marks for Keller Williams

Otis Blank

With W.E. O’Neil Construction Company as the general contractor, more than 70 percent of the subcontractors working on the retail renovation of the northeast corner of East Broadway and Craycroft Road are local. That is a welcome economic boost to a construction industry that is still struggling to recover 12,000 jobs in the Tucson region lost during the Great Recession. Of 36 subcontractors working on the 7.4acre Benenson Broadway-Craycroft Retail Center Project, 26 are local, according to Tommy Roof, vice president of O’Neil Construction, 710 S. Campbell Ave. Among the non-local firms, three are from Phoenix and “most of the rest are owner-specified vendors. They come with the project and mesh with our contractors,” Roof said. “We always try to use local contractors,” he said. “Every job in construction is important right now, we have so much unemployment here. In our industry, we had a depression, not a recession. These jobs feed local families.” The retail center project is renovating an 81,000 square-foot former Mervyn’s store into a building that will be split between two tenants: SteinMart and Hobby Lobby. The project also includes construction of a new 14,500 square-foot building on site for Mattress Firm, the Vitamin Shoppe, and space for two future tenants. The entire site is owned by Benenson Capital Partners, New York. SteinMart “is the big push” and plans to open for the holiday season. “In mid-October, they want to start moving in,” Roof said.

Redevelopment of the Broadway-Craycroft Retail Center will employ about 200 construction workers.

Hobby Lobby, Mattress Firm and the Vitamin Shoppe plan to open next year. Roof estimated the $4.2 million redevelopment project is employing about 200 local trades workers. It will require some 84,000 hours of labor and only $300,000 to $350,000 will go to outside companies. “So just under $4 million stays here,” he said. In mid-2006, construction in Pima County peaked at 28,700 workers. The economic downturn eliminated 11,900 of those jobs through July, according to state employment data. Local businesses working on the renovation project include: AAA Landscaping, Action Scaffolding, Allan Fire Protection Systems, Applied Rite Doors & Docks, Armour Shield Roofing, BW Plumbing, Babby-Henkel Building Specialties, Catclaw Contractors, Cornerstone Electrical Contractors, D&J Air Conditioning, and Dar-Hill Corporation. Other companies include: Eagle Roofing, Glass Unlimited, Grids, Herschman Architects, Liner Drywall, Meridian Surveying & Development, Mirage Plastering, Northwest Exterminating, Sierra Woodworks Blue Sierra, Southwest Hazard Control, Steel Management, Stonart, Sweetwater Group, Tom White Carpentry and W.G. Valenzuela Drywall.

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

Current

Last Week

8/28/2012

One 12 Month 12 Month Year Ago High Low

3.50% 3.75%APR 3.75% 4.00%APR 4.95% 2.88% 3.125%APR 3.13% 3.375% APR 4.22% 2.88% 3.125%APR 2.88% 3.125% APR

4.95% 4.22%

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

3.50% 3.00%

Rheem honors Perry Heating Perry Heating & Cooling, 3266 E. Grant Road, has been recognized by the Rheem Company as one of its top 10 contractors in the nation. As a member of the Rheem Team Top Contractors of 2011, Perry was honored for its outstanding employee training, high business standards, and customer service performance. Perry Heating & Cooling has about 30 employees. It was established in 1949 and is owned by George, Courtney and Butch Ashbrook. The company is known for featuring former University of Arizona basketball coach Lute Olson in its advertising. Rheem is an international manufacturer of residential and commercial heating and cooling systems and equipment.

Lower listings Now that the real estate market is maintaining some positive momentum, the number of neighborhoods with more than 200 homes for sale is falling. In July, only two zip codes in the Tucson region had more than 200 active listings. That’s a significant improvement on the dark days of 2010 when there were nine zones with 250 or more homes for sale. According to Tucson Association of Realtors’ Multiple Listing Service, the most listings in July were in zip code 85739 with 226 houses. This area is along North Oracle Road from Catalina State Park to the junction of state routes 77 and 79. The other zip code was 85718 in the Catalina Foothills with 206 listings, an area that frequently topped 300 listings through 2010 and into mid-2011. For the fifth consecutive month, more homes sold than were listed in the 85756 zip code. With 35 official listings, one additional home sold there in July. This is an area around Tucson International Airport be-

Based on several key measures, home buyers and sellers gave Keller Williams their highest customer satisfaction scores in a new national J.D. Power and Associates survey. In the home-buyer segment, Keller Williams was followed in the rankings by Prudential Real Estate and Coldwell Banker Real Estate. For home selling, Keller Williams was followed by Coldwell Banker then Prudential. All three companies have several local offices. The study measured how well the nation’s largest real estate companies delivered on customer satisfaction. The home-buying experience rated the agent/salesperson, office, and various services. The home-selling experience rated these three categories plus marketing. The survey also found that the topperforming companies captured a higher percentage of listing prices for clients. On average, sellers received 89 percent of their listing price when using a top-rated broker.

Sterling buys 16 lots A.F. Sterling Homes, 6340 N. Campbell Ave., soon will launch a new development project in Campos Adobes, at the southwest corner of Northern Avenue and Magee Road in Oro Valley. The home builder has purchased 16 finished lots there for $836,973 from Landmark Title Trust of Tucson, represented by Ben Becker and Adam Becker, CBRE.

Sales and leases • El Rio Community Health Center leased a 3,006 square-foot medical office building at 340 W. Prince Road from Joyce Pedersen, represented by Buzz Isaacson, CBRE. The tenant was represented by James Hardman, Desco Southwest. • Café Francais & Patisserie leased 3,000 square feet at 2900 N. Swan Road in Plaza Palomino from WCCP Plaza Palomino LLC, represented by David Montijo and Shannon Murphy, CBRE. • Abundant Health Family Practice leased 1,921 square feet at 2055 W. Hospital Drive in Northwest Professional Plaza, from Windrose Northwest Professional Plaza. The transaction was handled by Bruce Suppes and David Volk, CBRE.

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

20 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

‘Stakeholders’- new name for NIMBYs A stakeholder. you’d think that would include anyone affected by whatever it is you’re talking about. But it seems that’s not the case when it comes to making decisions within a governmental framework. I say that after reading a letter to the editor printed in the Aug. 24 issue of Inside Tucson Business. In part: “For years, city and Regional Transportation Authority staff have repeated the lie DAVID HATFIELD that stakeholders approved the plan. Yet the record shows consistent opposition from the 1980s to 2005 to today.” And yet on May 16, 2006, every registered voter in Pima County was given the opportunity to put their money where their mouths are and approve two measures: a half-cent sales tax to raise $2.1 billion and a 20-year regional transportation plan. Both were passed by about 20 percentage point margins. In election terminology, those were close to landslide victories. Solid wins in any case. In terms of defining the word stakeholder, the vote couldn’t have been any more encompassing. There are items within the transportation plan that not everyone agrees on. Even people who voted “yes” in 2006 probably didn’t support every item in it. But you can’t argue that stakeholders didn’t have their say. At a time when our local governments are having trust issues with voters, the bigger problem would be to selectively try to eliminate an approved project or two. No matter how good a reason someone thinks they have, a majority of voters approved it. Surely, that also had to be a “stakeholder” whose letter to the editor of the Arizona Daily Star was published on Aug. 23 under the title “Be thankful F-35s are going to Luke.” The letter writer, described as a retired Tucsonan, was critical of an earlier letter written by Ellen Jimenez, chair of the military affairs committee of the Tucson Metro Chamber, who was optimistic that Tucson may yet land a training center for the F-35. The letter writer took Jimenez to task as a person who “doesn’t, nor has ever, lived under or close to a flight path.” Rather than continuing to fight to get an F-35 training center at the Air National Guard’s 162nd Fighter Wing at Tucson International Airport, the letter writer notes the F-35s and Luke Air Force Base “are straight up the road on Interstate 10. Anyone who can put up with the congestion and noise that a big-city area like Phoenix grew into knows the way.” So if you follow this “stakeholder’s” thinking, he moves in underneath the flight path to a landing strip. He doesn’t say which one but Davis-Monthan Air Force Base has been there since 1927 and Tucson International Airport has been at its current location since 1948 — except that he doesn’t like hearing planes land so now the rest of us should move to Phoenix. Why doesn’t he move into a cave? But that’s the new definition of a “stakeholder.” NIMBYs have hijacked the meaning of the word. You’ve got to give them credit, though. It’s a masterful move because it gives the exact opposite impression of the original intent of involving as many people as possible.

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

EDITORIAL

Lessons learned Tuesday Now that we’re finished with Tuesday’s warm-up for the Nov. 6 general election, it’s worthwhile to take note of take-away lessons to be learned from the exercise. These three caught our attention.

Dirty doesn’t win Ray Carroll won his Republican primary — and ostensibly re-election to the Pima County supervisorial district he has served for 15 years since there’s no Democratic challenger. But the primary against challenger Sean Collins got to be a nasty one. Neoconservatives accused Carroll of not being a true Republican, noting that at one point in his life he had been a registered Democrat and has supported issues backed by the Democratic-majority on the Board of Supervisors. Republican National Committeeman Bruce Ash came to Carroll’s aid and even took to the airwaves with a radio commercial supporting Carroll. “There are a few people who have been up to no good in this election. It’s not OK to make stuff up, and the crew that’s helping wannabe supervisor candidate Sean Collins have been purposely trying to mislead us.” Ash said on the spot. That brought charges from Collins’ supporters calling Ash a RINO; Republican In Name Only — the term meant to imply a lack of conservative credentials. But Ash has been driving the Republican Party’s conservative train. It would be hard to find an Arizona party official who is more conservative than Ash on any issue. The race between Carroll and Collins really boiled down to one main point: the Rosemont Copper mine. Carroll has been a leading opponent. Collins supported it. We at Inside Tucson Business have supported development of the mine since 2006 and continue to believe it will provide a long overdue major boost to the region’s economy when it opens. But some people connected to Rosemont are harming the project through their tactics. This election showed it.

Work pays off There was a story floating around that early-on in the campaign for the Republican primary for the county supervisor seat being given up by Ann Day, Mike Hellon operatives showed up at a sparsely attended event put on by Ally Miller and decided at that point to write her campaign off. Hellon apparently thought he could rest on laurels he had gained as chairman of the Arizona Republican Party from 1997-1999 and as a Republican National Committeeman from 1992-2004, neglecting to realize “insider politics” isn’t exactly popular these days. And besides Hellon held those posts many years ago. Whatever deficit she might have had when she started, Miller played the outsider role masterfully and diligently.

Say something What may have been one of the oddest primary campaigns was the challenge to Pima County School Superintendent Linda Arzoumanian. Quick, name that challenger! You can’t? Mace Bravin didn’t say a whole lot to get noticed, even if he did manage to collect 45 percent of the vote. That has as much to do with the fact that the office isn’t exactly high profile so unless a person has a particular reason to vote one or another, it’s liable to be skipped as was evidenced by the undercount in the race. Bravin had a slogan on his website — “Putting the Public Back in Public Education.” And he cited his reasons for running as “transparency,” “accountability” and “putting children first.” All that says is he’s good at regurgitating buzzwords. Anyone would have been hard-pressed to find real reasons to fault the job Arzoumanian has done, but come on man, if you’re going to run for office, at least give a reason somebody should vote for you.

InsideTucsonBusiness.com

AUGUST 31, 2012

OPINION BUSINESS INK

This Labor Day, let’s rebuild our business reputation Fire up the grill. Break out the margarita pops. There are many reasons to celebrate this Labor Day weekend. But before we get too self-absorbed in our personal good fortune, consider this: there are some 34,500 of our neighbors who have little reason to cheer. This national holiday will find them feeling frustrated, hopeless, unfulfilled, unhappy, inept, and perhaps a bit embarrassed. They are all on the outside looking in, make that looking FOR, a job. It’s been three years since economists declared an official end to the Great Recession. Statistically, June 2009 was the tipping point. That’s when the national economy hit bottom and the recovery began. In Southern Arizona, the recovery has been lackluster, with an emphasis on the “lack.” As in the lack of job recovery, the lack of job creation, the lack of job growth, the lack of certainty about job security, the lack of wage growth, and the lack of a well-diversified private-sector economy. Here in Baja Arizona, there’s a sour mix of business, political, neighborhood, public policy, regulatory, tax, environmental, and other conflicting interests. That’s why the local economy is what it is and Tucson’s anti-business reputation, deserved or not, has gained notoriety over the decades. The reality about a negative business

setting is that it is spread by national news agencies, discussed at national conferences, talked about at corporate headquarters, analyzed by investors, blogged and tweeted ad ROGER YOHEM nausea, and used against us by others who aggressively compete for economic development. The region has a perception that likewise, will take years to turn around. In recognition of the crisis, kudos to Pima County Administrator Chuck Huckelberry and Tucson Mayor Jonathan Rothschild for their recent attempts to put the “pro” back in front of “business.” The challenges are many and the list of negatives is long, from mediocre airline service at our airport to the loss of Major League Baseball spring training and thorny land use restrictions. Then there’s Rio Nuevo. A key downtown booster once told me that wherever he travels the country on business, business people have heard of this Baja debacle. As a tertiary, mid-major city, the reality

is that job creation will be organic, mostly home grown with a small mix of “imports” from other states. When was the last time a big company came here with hundreds of well-paying non-call center jobs? So in the spirit of Labor Day, entrepreneurship, the free market, and America as the land of opportunity, let’s celebrate the positives. According to state employment data, Southern Arizona has turned the corner and is moving in the right direction. Over the past 12 months, the jobless rate for the Tucson region has dropped to 7.7 percent in July, from 9 percent. Knocking at the door of opportunity is some quick-fix relief: Walmart has five “organic” projects underway that will create 950 new retail jobs. Pharmacy benefits manager OptumRx plans to hire 400 employees. The Rosemont Copper mine is worth about 400 direct jobs and 1,500 indirect jobs for suppliers and support services. Newcomer Accelr8 Technology Corp. hopes to have more than 200 employees within a decade. That’s almost 3,500 new jobs from just these four companies. If all goes as planned, that would put 10 percent of our 34,500 jobless neighbors back to work. That’s a labor situation that would make them feel successful, fulfilled, happy, productive and more than a bit proud.

For the 92.3 percent of us who have jobs, pay it forward. Literally, celebrate Labor Day with labor. Donate your own labor, time and resources as a community service volunteer. Habitat for Humanity Tucson always needs labor. And although this year’s 9/11 Freedom Day home-building event is fully booked, the need for volunteers continues long after September. Another option is the Arizona Builders Association’s Volunteer Day. You don’t have to be a drill and drywall whiz for this project to help 75 homeless military vets in transitional housing. In December, Esparanza En Escalante, is slated for a major renovation and upgrade. Arizona Builders Association executive director Tom Dunn welcomes anyone interested in helping with Volunteer Day. Contact him at tdunn@azbuilders.org . Since 1894, Labor Day has celebrated the economic and civic achievements of the American worker. This year, let’s also cheer those who are in the business of creating jobs and those who are working on building a new reputation for doing business in Southern Arizona.

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

GUEST OPINION

Faux science and bullying wants to create a jaguar habitat The U.S. Fish and Wildlife Service (USFWS) has released a notice soliciting comments on a proposal to designate critical habitat for the jaguar in New Mexico and Arizona. The request appears to be based as much on legal threats by the Center for Biological Diversity to sue if they don’t get their way, as it is on science. The Center for Biological Diversity has a history of gaining millions of our federal tax dollars through intimidation and litigation. In a High Country News Dec. 21, 2009, interview, Kieran Suckling, founder of the Center for Biological Diversity (CBD), was quoted as saying: “New injunctions, new species listings and new bad press take a terrible toll on agency morale... Psychological warfare is a very underappreciated aspect of environmental campaigning. “The core talent of a successful environmental activist is not science and law. It’s campaigning instinct. That’s not only not taught in the universities, it’s discouraged.” We are confident that the USFWS and

U.S. Forest Service (USFS) will not be intimidated by a group that prides itself on bullying public agencies. We have seen firsthand how seriously the USFWS and the JAMES A. STURGESS USFS take their mission to be good stewards and to develop reasoned, scientifically based assessments. It is widely known that the few jaguar sightings in Southern Arizona in the last half-century or more have been males. Even the Center for Biological Diversity biologists would have to agree that a species with only sparse wandering males does not constitute a breeding population. Records show the last recorded sighting of a female jaguar in Arizona was in 1910. As to potential impacts from the Rosemont Copper project, and any related

activity for that matter, Section 7 Consultation under the National Environmental Policy Act involving the USFWS, USFS, and Rosemont Copper is underway and the jaguar is part of that review. This multiagency process evaluates the facts, the data, and the record, to define conservation measures appropriate to the level of impact possible or anticipated. The northern Santa Rita Mountains is an area that has been used for mining, ranching, recreation, and similar activities since the 1800s. The Rosemont Copper project site has been described and characterized throughout the Environmental Impact Statement as subject to heavy mechanized use with significant human presence. With or without the Rosemont project, this ongoing activity level is not going to make ideal conditions for the large cat, making the statements from the Center for Biological Diversity a wish rather than science. The jaguar’s wide range extends from northern Mexico through Central America

and much of South America. Therefore, it’s unclear how a fringe area on the northern periphery of the Santa Rita Mountains could possibly be considered essential to the species’ conservation and recovery especially when the area has a century of ongoing human use. Our project will not adversely affect the ability of conservation organizations to conserve and recover this species. In the meantime, this question is being dealt with today within the existing National Environmental Policy Act process. We are confident that thoughtful analysis will relegate the faux science and bullying tactics of the Center for Biological Diversity as activism, and that the agency will see that designation of critical habitat in other areas may be warranted for the conservation and recovery of the species, but not the northern Santa Rita Mountains.

James Sturgess is senior vice president of corporate development and government affairs for Rosemont Copper.

22 AUGUST 31, 2012

INSIDE TUCSON BUSINESS

LETTERS

Not ‘ungrateful,’ but working to solutions TO: The Editor FROM: Steve Kozachik, Tucson City Council RE: Being ‘ungrateful’ Creating good public policy isn’t about a persistent cadence of divisiveness and criticism over the airwaves, or running around with little bubble diagrams purporting to show that our problems are the result of factions that we need to dissolve. Doing that only serves to further entrench divisions and drive a wedge between parties (small p) and Parties (capital P) thus making common ground more difficult to achieve. Creating good public policy is absolutely about working to break down barriers, bringing otherwise disparate groups to the table and working for solutions. That means creating a new normal for the region. And where that means crossing Party lines, or refusing to buy into the notion of “my party right or wrong” it is considered by columnists Joe Higgins and Chris DeSimmone as being ungrateful.

They’re wrong – and their approach to regional policy is unhelpful. In their column in the Aug. 24 issue of Inside Tucson Business, Higgins and DeSimone wrote: “Kozachik has since endorsed Democrats Ron Barber for Congress and Richard Carmona in his bid to go to the U.S. Senate. Neither of those guys are going to help Kozachik at Tucson city hall. Memo to Mr. Kozachik: You’re not taking heat because you’re supporting Democrats, you’re taking heat because you’re ungrateful.” The first sentence explicitly calls out Party affiliation, and the second tries to negate it. Both of the gentlemen they cite have demonstrated an ability to cross party lines to find common ground. They’re smart enough to recognize that when the water rises, the island you’re on isn’t going to tilt. You can compromise on position without compromising on principle. Since my election, I have walked the walk of bringing to the table voices who had previously only shouted at one another across a divide. The most recent examples include major civic event coordinators meeting with the Metropolitan Tucson Convention and Visistors Bureau and the city manager to better coordinate support for those

economic drivers. They include my bridging the gap between the city, Pima County, Tucson Department of Transportation, the Regional Transportation Authority, two county supervisorial districts, along with homeowners associations and a developer in the River-Craycroft roads area in an effort to better plan transit capacity issues. They include pushing for the formation of stakeholders in support of a film incentive bill that will necessarily require inter-Party support, across multiple levels of government, various retail sectors and the hospitality industry if it is to pass. It includes working with builders who own property around the University of Arizona, bringing them to the table with residents who live in historic neighborhoods in the area, trying to find collaborative solutions to the inevitable growth of the UA and how that will occur in the complex interplay of preservation and growth. Those efforts don’t lend themselves well to bubble diagrams or sniping over the air. They require the ability of adults to sit with one another and work towards solutions. That needs to be the new normal for our region. Higgins and DeSimmone criticized me for taking on state Sen. Frank Antenori,

R-Tucson. Guilty as charged to the extent that I spoke out against legislation he sponsored that infringes on local decision making and would negatively impact our general fund. State government balanced its budget on the backs of cities and counties. Higgins and DeSimone criticized me for not supporting Tyler Vogt in last year’s city council elections. In fact, I did work with Mr. Vogt, provided him counsel on the budget and other important issues. When he came out in support of the lawsuit against the City of Tucson filed by the Rio Nuevo Multipurpose Facilities District board, I could no longer support his candidacy. One does not sue the constituents he seeks to represent and hope it will end well. I’ll continue to reach out to stakeholders, not ungrateful for the support I was given, but focused on working towards a greater good for the region, irrespective of Party affiliation, and irrespective of whether or not the factions I’m bringing together have worked well with one another in the past. Higgins and DeSimmone will continue their zero sum approach to politics. That will only guarantee the community loses if they win. Fortunately, their track record is pretty much all hat and no cattle.

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24 AUGUST 31, 2012

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