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PUMPED UP FOR A BIODIESEL COMEBACK Arizona Petroleum makes push to rebuild market PAGE 16

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • SEPTEMBER 7, 2012 • VOL. 22, NO. 14 • $1

Gym owner gets shot on TV’s ‘Ultimate Fighter’

FBI and state enter embezzlement case Rathbun Property officials deal with missing monies Page 6

By Patrick McNamara Inside Tucson Business

On the air

Metropolitan Pima Alliance names its Hopeful nominees Page 19

ses s e sin into u b s ng all Sm tappi d app iPa e v i t crea

Photo illustration by Andrew Arthur

Common Ground finds finalists


A look back at KTKT Color Radio Channel 99 Page 8

Joey “Boom Boom” Rivera, who with his wife Nicole owns Apex Mixed Martial Arts, has been selected to be in the cast of the newest episodes of the FX Network show, “The Ultimate Fighter Fridays.” Rivera, 32, was selected from a group of 60 fighters to make up the cast of 32 contestants. Nicole Rivera said she hasn’t spoken with her husband for nearly six weeks while the reality TV show has been filming in Las Vegas. She says her husband has been involved in mixed martial arts for nearly 15 years. Since turning professional, his won-loss record is 7-1. “The Ultimate Fighter Fridays” features an initial elimination round where 16 of the contestants have to fight to remain on the show. Those who make it will be selected to compete for one of two teams for the remainBIZ FACTS der of the season. ConApex Mixed Martial Arts testants fight in a series of single-elimination 701 E. Fort Lowell Road (520) 344-4842 bouts for the chance at a contract with the timate Fighter Championship. The two-hour season premiere is scheduled for 9 p.m. Sept. 14 (viewers to the East Coast feed see the show at 6 p.m., Tucson time). In the season finale, scheduled for Dec. 15, two finalists will fight for the contract. Nicole Rivera said she doesn’t know how her husband did in the six weeks of filming, which included training and matches. “It will be pretty excruciating to watch it on TV,” she said. At their small gym, at 701 E. Fort Lowell Road, Joey Rivera and other former and current professional fighters teach mixed martial arts, grappling and kick boxing. The gym also has classes tailored for women and for children. In addition to the chance at making his name in professional fighting, Nicole Rivera said the appearance on “The Ultimate Fighter Fridays” should be a boom for Apex Mixed Martial Arts. “I definitely think it’s going to help,” she said.

Contact reporter Patrick McNamara at or (520) 295-4259.

2 SEPTEMBER 7, 2012


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Jason Smith - Attorney, Scott McLaughlin - Insurance Specialist & Adam Escobar - VP of Finance

LEGAL & LEGISLATIVE CONCERNS HOA INSURANCE ISSUES & RESPONSIBILITIES BUDGET & FINANCE STRATEGIES September 22, 2012 | 9am - Noon Windmill Suites at St Philip’s Plaza 4250 North Campbell Ave, Tucson, AZ 85718

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Tucson businesses put iPads to use in a variety of ways Stories and photos by Alex Dalenberg Inside Tucson Business Tablet computers are heavily marketed to consumers, with an emphasis on movies, games and personal productivity. But the iPad and devices like it are also changing how companies in the Tucson region go about their daily business. The iPad debuted in April 2010, but the last year or so has seen massive business adoption for the device. Apple announced in the fall that more than 90 percent of Fortune 500 companies have at least begun experimenting with using iPads. Many even have developed their own proprietary, custommade apps that are used for specialized business processes. But it’s not just mega companies that are deploying tablets. The iPad’s simplicity and relatively low price — a basic model costs $499 — have allowed small and medium businesses to capitalize on the trend as well. A study conducted by New York-based market research firm NPD Group found that nearly three quarters of U.S. businesses with fewer than 1,000 employees have plans to purchase tablets this year. The iPad isn’t the only tablet computer, of course. There are alternatives, including the Kindle Fire by Amazon and several devices that run Google’s Android operating system. And software giant Microsoft recently announced its own line of tablet PCs that will be known as Surface. But the iPad, which accounts for more than 60 percent of the global tablet market, was the most considered tablet for small businesses in NPD’s study. Tucson businesses are using the iPad to cut costs, simplify complex tasks and improve customer service. Here is how five Tucson businesses are using the device.


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

Mark Sykes, CEO and director of the Planetary Science Institute, talks with Matt Balme, a research scientist with the institute who is based in Milton Keynes, United Kingdom.

A cooler cash register Sparkroot Coffee Bar + Fare 245 E. Congress St.

Sparkroot owner Ari Shapiro doesn’t consider himself an early adopter, in fact, quite the opposite. “I’m actually a bit of a luddite. If I could use an old-fashioned cash register, I would,” he said. But when the entrepreneur decided to open Sparkroot, a downtown artisan coffee bar, he found himself opting for a completely tablet-based point of sale system over a traditional cash register. “I’m always one for choosing simplicity,” Shapiro said. “I was intrigued.”

The setup is simple. Using an app called ShopKeep POS, baristas punch in orders on an iPad. Customers either pay in cash or scan their debit or credit card through a scanner that is plugged into the iPad. ShopKeep also tracks data such as sales and inventory which Shapiro can then review from anywhere. The iPad has been causing a major disruption when it comes to point of sale, which traditionally has been cumbersome and expensive, often requiring long-term contracts and sophisticated equipment. Traditional point-of-sale systems can run into the tens of thousands. But the initial set-up at Sparkroot cost about $1,000, SEE iPADS PAGE 4














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Arizona e-book buyers due refunds in settlement Consumers in Arizona are due to get $1.5 million in refunds from Hachette Book Group Inc., HarperCollins Publishers LLC and Simon & Schuster Inc. after the publishers agreed to settle a lawsuit filed by 16 states saying they were setting prices higher across the board. “Consumers paid millions of dollars more for e-books than they should have because of the defendants’ illegal conduct,” said Arizona Attorney General Tom Horne. Litigation is still pending against two other publishers, Penguin Group Inc. and Holtzbrinck Publishers LLC , as well as Apple Inc. The settlement covers e-books purchased from the publishers between April 1, 2010, and May 21, 2012. The price-fixing charge stems from a deal the publishers made with Apple to get their books on the iTunes site. The deal with Apple sought to raise the price of new books to above $13, compared with was charging at the time, typically $9.99. Apple said it based its model on what it was doing for music sales, where the industry sets the price and Apple takes a percentage of each sale. Apple officials said last month they believed was behind the push for the lawsuit.

Cosmetology pharma firm in Scottsdale to be sold Medicis Pharmaceutical Corp., a publicly traded specialty pharmeceutical company based in Scottsdale, has agreed to be bought out for $2.6 billion by Valeant Pharmaceuticals Inc., based in Montreal, Quebec. Medicis will operate as a division of Valeant and maintain its commercial dermatology operations in Scottsdale but otherwise the combined company expects to have a smaller workforce in Arizona. In an investor conference call, Valeant’s chairman and CEO Michael Pearson said he expects to achieve annual operating costsaving synergies of $225 million within the first six months of closing the transaction in 2013.

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

6 7, 9 8 10 10 16

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

17 18 19 20 20 23

4 SEPTEMBER 7, 2012


NEWS TREO tells city it helped create 2,200 jobs At a presentation before the Tucson City Council on Wednesday (Sept. 5), Tucson Regional Economic Opportunities president Joe Snell said the economic development organization helped facilitate the creation of more than 2,200 jobs in the region in the fiscal year ended July 31. The annual report notes that TREO’s efforts have helped bring in as much as $69 million in capital investments to the region with a total economic impact of $377 million.

BBB warns about firm using bogus Tucson address Better Business Bureau of Southern Arizona this week issued a warning to businesses about a company going by, which claims to be based in Tucson and is soliciting contractors around the country, offering a “free” list of biddable jobs in their area for a $100 background check fee. According to businesses who spoke with BBB, U.S. Workmen claims the list of biddable jobs is free, but the businesses must pay a $100 fee for a background check before receiving the list. Businesses who paid the $100 fee tell BBB they never received a list, and that they’ve been unable to contact the company to collect a refund. Since July, BBB has received 545 inquiries from businesses and consumers into U.S. Workmen, making them one of the most inquired about Southern Arizona businesses of the summer. U.S. Workmen says its address is 5151 Broadway, but BBB could find no such company at that address. A virtual officer service, Intelligent Assistant, has a suite at 5151 E. Broadway but company management say they have no contract with U.S. Workmen for their services. BBB said it was able to briefly talk with a sales representative for U.S. Workmen who said he was based in Oregon, though he insisted the company’s corporate headquarters are in Tucson.

iPADS CONTINUED FROM PAGE 3 including the device and software. After that, the coffee bar’s ShopKeep POS subscription costs roughly $50 per month. The iPad is also easier to train employees to use, Shapiro said. The touch screens are easy to navigate and the staff is comfortable with the technology. The iPad also fits with Sparkroot’s hip look and feel. “It’s easy to use and it’s fun,” he said. “And I wanted something sleek, to go with the environment.”

Paperless planes

Sonoran Wings Flight Training Centre 6720 S. Plumer Ave.

Using an iPad behind the wheel of a car will likely cause an accident, but they’re becoming indispensable in a cockpit. Jerry Williams, owner of Sonoran Wings Flight Training Centre, is an enthusiastic convert to tablet computing. Students at his school use the iPad for help in everything from dispatching to flight planning to navigation. “This thing is taking over aviation,” Williams says. From puddle jumpers to jumbo jets, the iPad is being used to tackle one of the biggest nuisances in the skies: paper. For years, federal regulations have required pilots to carry heavy flight bags containing aeronautical and navigation charts, airport directories, flight plans and more. The weight adds up, especially in smaller airplanes, Williams said. The Federal Aviation Administration also updates some flight materials nearly weekly, which means keeping paperwork current can also be cumbersome. But using simple e-reading apps, such as iBooks, pilots can cut down on paper and actually have quicker access to important information swiping a screen than flipping through a heavy chart. The U.S. Air Force ordered some 18,000 iPads for pilots. Several major airlines, including United and American, also are plan-

ning to start using “paperless cockpits. its.” Williams said that some of his students udents use flight-based apps such as ForeFlight, Flight, which uses the iPad’s GPS, to help write flight plans and analyze their piloting iloting skills. The iPad also is handy for looking ng up weather, which is always on a pilot’s mind, Williams says. Williams has been working with computers since 1956 and still has the Apple pple II he bought in 1979. “Computers are a way of life for me,” he says, “But this is one of the biggest changes I’ve seen since I started using them. m.”

A tech friendly community ity

La Posada 350 E. Morningside Road, Green Valley

La Posada, a 700-resident retirement ement community where the average resident dent is about 85 years old, is out to end any nony no tion that seniors and technology don’t mix. The nonprofit is dedicated to making its campus tech-friendly. The iPad is central to those efforts, said Paul Ide, a senior vice president at La Posada. The community loans iPads from its library and has encouraged informal iPad clubs for residents to share what they’re doing with their devices. “We try to help the residents use technology to do things they enjoy,” Ide said. “If we can do that, we’re way ahead.” Ide said the iPad is a good fit for a number of reasons. For one thing, it’s more comfortable to use. Residents don’t have to sit at a computer desk and can move easily with it from room to room. It’s also not susceptible to viruses the way PCs are, making it easier to maintain. La Posada has also equipped some of its meeting rooms with Apple TVs, which allow residents to broadcast what’s on SEE iPADS PAGE 5

After upward spike, gas prices may hold Gas prices in Tucson are up an average of 43 cents a gallon over the past month to $3.58½ a gallon for regular, according to AAA Arizona’s weekly Fuel Gauge report. But now that the Labor Day holiday has passed marking the end of the summer travel season, price fluctuations during the week remained flat day-to-day and didn’t continue upward as they had been most days over the past five weeks. Arizona’s statewide average was $3.68 a gallon this week, up from $3.28½ a month ago. A “paperless cockpit” will enhance the efficiency of aeronautical charts and flight plans

• Collecting payments — The iPad can double as a sales terminal with apps such as Square and Intuit GoPayment that can collect credit card payments on the go. • Presentations — Light and portable, slideshow apps such as KeyNote and SlideRocket are a way to deliver a face-to-face sales or marketing pitch. • Video conferences — Apps such as Skype and FaceTime that use the iPad camera can connect coworkers from anywhere. Professional meeting software such as GotoMeeting allow computer desktop and screen sharing. • Laptop replacement — With a wireless keyboard, the iPad can take the place of a bulky laptop for most basic business work. Office apps including Documents to Go and QuickOffice Pro allow users to create and edit Microsoft Office documents on the iPad. • Accounting — Apps such as QuickBooks Mobile and Kashoo Accounting enable business owners to quickly review their finances from anywhere. • Taking notes — Evernote is a powerful way to collect, save and review important information from meeting notes to ideas. Apps such as Notability and Skitch that use an iPad stylus let users “write” notations on PDFs by drawing on the screen. • Making “To-Do” lists — A slew of productivity apps such as Omnifocus, Todo and BentoBox can be an effective way to organize and store everything that has to get done during the day. • Saving paper — Reading on the iPad is more natural than on a computer screen and more cost effective than printing. Reading apps including iBooks and Kindle can store important documents such as Word files and PDFs.



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iPADS CONTINUED FROM PAGE 4 their iPad to a group. Residents meet regularly to share photos, interesting stories, or simply get more familiar with the device. “The philosophy is residents helping residents,” Ide said. When it comes to computing, there is plenty of that. La Posada has a tech helpline staffed by volunteers that offers assistance with frequently asked questions. The iPad has also been used in Hospice and Memory care, sometimes to play a patient’s favorite music or for video chatting with relatives.

Good News From No. 49 to No. 4 While it may not feel like a fast-pace, Arizona ranks No. 4 among states for job growth up from No. 35 a year ago and No. 49 in 2010, according to a new study of Bureau of Labor Statistics data by Arizona State University. The state added 55,700 jobs between July 2011 and July 2012, for a growth rate of 2.38 percent, according to the study. Most of the new jobs were created in the Phoenix metro area, which added 48,500 for a growth rate of 2.91 percent. The Tucson region added 3,100 jobs for a growth rate of 0.91 percent.

International meetings Planetary Science Institute 1700 E. Fort Lowell Road

The Planetary Science Institute might have its eyes on the stars, but it also has to keep track of its staff here on earth. The nonprofit research institute focuses on the exploration of the solar system and works with NASA as well other space agencies. It has about 100 employees, with roughly one-third based at its Tucson headquarters. Others are distributed across 18 states and Washington, D.C., and in countries such as the United Kingdom, Switzerland, Russia, Australia and others. And many of those people spend ample amounts of time on the road, traveling to conferences and meetings. In short, building a team atmosphere can be tough said director Mark Sykes. The institute started out using iPads to do basic work on the road, like email. But when the iPad 2 came out, and was equipped with a Web camera, Sykes had the institute trade in for the brand new version. Every employee now has an iPad 2. The institute also built a custom iPad app called PSI Connect. It contains a directory of every employee and shortcuts to connect with them via video apps such as FaceTime or Skype. “The value of iPads in our business is communication,” Sykes said. The ability to have live video has been a major upgrade to the institute’s weekly staff meetings. The iPads also helped the institute get around having to buy a pricey video conferencing tool, with a special telephone line and camera. “We’ve gotten people used to seeing each other. We know what we look like. We talk with each other,” Sykes said. “It builds and helps to maintain our community.”

Remote business management Z Mansion 288 N. Church Ave.

Tom Hill runs a true home-based business. Z Mansion, the historic downtown wedding and event venue Hill owns, doubles as his family’s actual house. The trouble is, Hill is seldom home. After a successful career as a writer, then

The Tucson

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

El Conquistador owner is about to give up For retailers, an iPad can be set up as a cash register.

as a Web entrepreneur, Hill splits his time between Tucson and France, and travels around the globe doing a mix of exploring and volunteering. The iPad lets Hill manage the business of Z Mansion from just about anywhere. The dozen or so vendors Z Mansion works with handle most of the nitty gritty of event planning, but Hill uses Apple’s Web-based iCloud to update and review slideshows, spreadsheets, and the company’s books from the road. The company keeps everything, from planning worksheets to rehearsal instructions in the cloud where they can be easily updated and accessed from any of the company’s devices. “It’s really easy to use and update,” Hill

said. “And it lets us continue to be involved in a company that we like. It’s fun for us to do this.” Hill also uses an app called HelloFax to send and receive faxes and electronic signatures. And for staff meetings, he uses the iPad’s camera. Z Mansion vendors also use iPads to give walking tours to prospective customers using KeyNote, a slideshow app for Mac products. You couldn’t do that with a laptop, Hill said. “It’s interactive, good-looking and mobile,” he said. They also can show the house to anyone who might not be able to tour in person using the built-in webcam. For example, one half of a prospective couple toured the venue from a base in Afghanistan.

Three iPad Alternatives • Kindle Fire by Amazon ($199) — Amazon’s answer to the iPad is one of the least expensive tablets available. It’s not fancy — it’s significantly smaller than the iPad and doesn’t support as many apps — but it has the basics such as email, Web browsing and e-books and documents. • Samsung Galaxy Tab ($399) — This tablet is a popular alternative to the iPad. It has a slightly larger screen and access to hundreds of thousands of apps in the Android Marketplace. Unlike the iPad, the Galaxy Tab has a MicroSD card slot for adding memory or transferring photos

and there are shortcuts for switching between apps and functions like taking screenshots. • Asus Transformer Prime (about $500) — This Android device is something of a laptop/tablet hybrid. The Transformer Prime comes with a detachable keyboard dock meaning it converts from a tablet, to a laptop-like device and back again. It also boasts about 18 hours of battery life, which is convenient for long stretches of work. A USB port also means it can connect to printers and other devices.

After looking for a buyer for at least a year but finding no takers, Ashford Hospitality Trust is ready to give up on the Hilton El Conquistador Golf and Tennis Resort in Oro Valley and give the keys back to the lender, MetLife. In its quarterly report, Ashford said it is negotiating with the lender for a potential deed-inlieu or consensual foreclosure and receivership transaction. Ashford, a Dallas-based real estate investment trust specializing in hospitality industry properties, acquired the El Conquistador in the second quarter of 2007 as part of a $2.4 billion, 51-property acquisition. The company has been trying to find a buyer, either for the resort or the El Conquistador Country Club and Golf Course and preferably both, saying the properties have negative operating income. An indicator of how resorts in the Tucson region are contiuing to struggle, in December Ashford announced it had a refinancing agreement with MetLife on a $19.7 million for the El Conquistador that called for interest-only payments for five years. The interest was to be the greater of 5.5 percent of the loan amount or Libor (London Interbank Offered Rate) plus 350 basis points. Others within the Tucson hospitality industry say they believe the El Conquistador is continuing to operate at a loss and that’s why Ashford is throwing in the towell. Aside from the local conditions, another albatross is that the water bill to maintain the 45hole golf course runs about $1 million a month. Despite the problems, the resort has undergone several renovations recently, including one of its restaurants which will reopen Sept. 14 as Epazote Kitchen & Cocktails, focusing on Southwest cuisine. Regardless of what happens to the resort’s ownership, the plan is for Hilton to continue to manage it and operate it.

6 SEPTEMBER 7, 2012


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


FBI, state enter Rathbun Property Management embezzlement case

No filings for businesses.

FORECLOSURE NOTICES Transwest Camino de Oeste LLC 4545 W. Ajo Highway 85746 Tax parcel: 119-45-013A Original Principal: $2,500,000.00 Beneficiary: Ajo Camino de Oeste LLC Auction time and date: 11:30 a.m. Nov. 21, 2012 Trustee: Steven J. Itkin, Waterfall Economidis Caldwell Hanshaw & Villamana, 5210 E. Williams Circle, Suite 800

LIENS Federal tax liens AAA Security Products Inc., 4101 S. Sixth Ave. Amount owed: $24,454.79. Rebecca Patsch PC, 3042 N. Avenida De La Colina. Amount owed: $18,372.09. Firebird Logistics & Storage LLC and Marc A. Espinoza, 2481 W. Poppy Ave. Amount owed: $12,982.09. Frankie’s South Philly Cheesesteaks & Hoagies and Frank Santos, 2574 N. Campbell Ave. Amount owed: $33,984.47. Bird & Burky Concrete Contractors LLC and Larry Burkhard, PO Box 65563, 85728. Amount owed: $10,617.97. Fraternity Management Group and Jenson Noble Inc., 5055 E. Broadway, Suite C214. Amounts owed: $210,814.62 and $1,389.69. R.A. Plumbing and Ramon Michael Alvarez, 8055 W. Savi Place. Amount owed: $10,504.29.

State liens (Liens of $1,000 or more filed by the Arizona Department of Revenue or Arizona Department of Economic Security.) Hollis Graphics Inc., 178 E. Broadway. Amount owed: $2,111.27. Maesat Enterprises LLC, 3833 S. Stockton Road, Safford. Amount owed: $6,430.15. Mighty’s Sports Grill and Resolute LLC, 515 Pan American Ave., Douglas. Amount owed: $3,724.83. Proud Automotive Inc., 1045 W. Wetmore Road. Amount owed: $52,020.17. Long Horn Grill and Santa Cruz Excavating Inc., 2034 W. Silver Place. Amount owed: $5,504.11. Fine Furniture Outlet, Discount Furniture and Chang H. Han, 2134 Silva Drive, Fullerton, Calif. Amount owed: $6,144.97. Romano Landscaping Inc., PO Box 13393, 85732. Amount owed: $1,061.78.

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

Sandra J. Mack against Marvin R. Dodd and R&R Hospitality LLC. Amount owed: $105,803.50. Granite Construction Co. against Via Entrada Townhouses HOA. Amount owed: $35,549.07. Excel Mechanical Inc. against Graybar Electric Co. Inc. Amount owed: $6,252.90. Escalante Concrete Construction Inc. against Barker Morrissey Contracting Inc. and Southwest Fiberglass LLC. Amount owed: $66,673,12.

Release of federal liens Catalina Limousine & Transportation Services Inc., 3365 S. Country Club Road La Baguette Bakery, La Baguette Parisienne and Norbert A. Satta, 1797 E. Prince Road Adobe Home Health Care Inc., 7670 E. Broadway, Suite 280 Rumsey Architecture LLC, 3541 S. Calexico Ave. X-Ray Physicians Ltd., 2001 W. Orange Grove Road, Suite 104 K&K Insurance Agency LLC and Carlos M. Arias, 536 W. Utah St. Northwest Tool Corp. and Sheldon Lazarow, 4345 N. Sullinger Ave. Care Haven Adult Care Home and Ubaldina Trejo, 1625 S. San Joaquin Ave.

By Roger Yohem Inside Tucson Business Officials of Rathbun Property Management are being questioned by the FBI about $1.8 million missing from a trust account while at the same time the Arizona Department of Real Estate on Tuesday issued a cease and desist order barring two of the firm’s designated brokers from doing realty business. The firm’s office, at 5650 E. 22nd St., remained opened Wednesday (Sept. 5). Bette Rathbun told KOLD News 13 that the order did not require her to close and she is working to get the business into compliance with state regulators. State officials’ cease and desist order against George W. Glover and Cassandra Leigh Arnold stems from the $1.8 million that was missing from a trust account held by Rathbun Property Management. According to state documents, Glover discovered the money was missing during an audit on Aug. 13 at which time he notified the state Department of Real Estate.

On Aug. 21, he filed a complaint with the department saying Arnold had taken the money. Then on Aug. 23, the state subpoenaed Glover and Arnold to appear Aug. 31 but neither showed up. They also failed to respond to the state’s requests for documents or written statements related to the case. The Department of Real Estate’s enforcement and compliance division ordered Glover, Arnold, Rathbun Realty and Rathbun Property Management to “immediately cease and desist from engaging in any real estate activity.” The order identified Glover as designated broker for Rathbun Realty Inc. and Arnold as designated broker for Rathbun Property Management. Bette Rathbun established Rathbun Realty in 1974. It became Rathbun Property Management on May 18, 2012, according to state records. The officers were listed as Rathbun, Glover and Arnold. Glover is Rathbun’s husband. When the shortage in the trust account was discovered in August, Tucson Police

officers were told only Rathbun, Glover and Arnold had access to the account, which held tenant deposits and rents. When contacted Wednesday, Rathbun-Glover said the FBI has three agents working on the case and “they are doing an awesome job. Other than that, they’ve asked me to limit my discussion of the case. I understand the process may take six to 12 months.” She added she has kept the business running with volunteers from her church and other friends. Rathbun said her firm had been managing about 700 rental properties in the Tucson region but since the alleged embezzlement surfaced, she has lost about 10 percent of those clients. Previously, in March 2006, Rathbun had her real estate license revoked by the state for “trust account irregularities.”

Contact reporter Roger Yohem at or (520) 295-4254.

Report finds 1 of 5 Arizonans lacked health insurance in 2010 By Khara Persad Cronkite News Service Almost one out of five Arizonans was without health insurance in 2010, with the number rising to one in four in some of the state’s hardest-hit counties, according to a Census Bureau report. The report said that Arizona’s overall uninsured rate for people under age 65 stood at 19.3 percent in 2010, slightly higher than the national average of 17.7 percent for the same year. The average in Pima County was 18.6 percent, the third-lowest among Arizona’s 15 counties. Texas was the worst state in the nation, with 26.3 percent of its population uninsured in 2010, while Massachusetts had the best rate at 5.2 percent. Tara Plese, a spokeswoman for Arizona Association of Community Health Centers, said the numbers are significant for Arizona, as they translate into a “tremendous number” of patients seeking uncompensated

medical attention. “We are really seeing it in our health centers,” Plese said. The bureau’s Small Area Health Insurance Estimates (SAHIE) report said the worst-off Arizona counties were Santa Cruz, La Paz and Yuma counties. The Santa Cruz County rate was 28.4 percent in 2010, the most recent year for which figures are available. The Census report includes almost any type of insurance – whether Medicaid, private or employer-based – when determining who is covered and who is not. The only type of health care coverage excluded from the report is Indian Health Service coverage. Wes Basel, team lead for the Census Bureau’s SAHIE project, said the exclusion of Indian Health Service coverage could help explain the higher rates of uninsured people in those parts of the country with large numbers of American Indians. Overall, the percentage of Arizonans with health insurance had improved — but only

slightly — from 2008 to 2010, according to the report. “Some of those numbers may have increased because 2008 was the heart of the recession,” said Monica Coury, spokeswoman for Arizona Health Care Cost Containment System, the state’s Medicaid system. As the economy and job market improved, it might have contributed to a slight rise in the number of people who had health insurance. But in general, Coury said, “Arizona’s uninsured rates have been fairly steady.” But even having a job is no guarantee of coverage. Plese said in many cases, employers cannot afford to provide insurance to workers. “Small businesses are not able to afford health insurance because of the cost of covering their employees,” Plese said. The report said the Arizona counties with lowest rates of uninsured in 2010 were Greenlee, at 15.1 percent, and Cochise, at 17.9 percent.


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8 SEPTEMBER 7, 2012



Former KTKTers remember ‘Color Radio, Channel 99’ Counting down the top 40 hits By Lee Allen Inside Tucson Business

Lee Allen

It’s been nearly half a century since KTKT Color Radio, Channel 99 “owned” Tucson’s airways with the introduction of top 40 music. Frank Kalil, one of the original Swinging Seven doo-woppin’ DJs, is credited with initiating the concept and he proudly admits: “At the time it was radical (and) we kind of blew the doors off the market.” Did they? And how! Writing in the Tucson History section of The Broadcast Archive website, engineer and historian Barry Mishkind notes: “KTKT had stratospheric ratings. Their staff was the next best thing to local royalty.” Attesting to that popularity during the decade of the 1960s, the station’s historical tribute page notes that BIZ FACTS KTKT, at many • December 1949: KTKT signs on the air times, had more as Tucson’s fifth radio station, broadcastaudience than ing on 1490-AM. Unlike other stations at the total the time, it was not affiliated with a major listeners of all network. other radio • 1956: KTKT moves to 990-AM and instations creases broadcast power to 10,000 watts, combined from 1,000 watts, though it’s restricted to — and by 1969, broadcasting only until sundown. there were a • 1957: Frank Kalil is hired, eliminates dozen others, a variety of other music programs and all on the AM launches full-time top 40 music format, dial. calling it Color Radio, Channel 99. A newspaper • April 14, 1960: KTKT launches 24-hour ad in the a day operations after receiving approval mid-60s showed a police from the Federal Communications Comline-up photo of mission. DJ Kalil in • 1966: KTKT begins down-playing the prison stripes “Color Radio” branding but continues to under the focus on top 40 music. It also gets a direct heading competitor when KIKX signs on, first as a “Wanted for daytime-only station at 1550-AM but later Stealing (68.2 moving to 580-AM. percent of • Late 1967: Kalil leaves KTKT, forms Tucson’s radio partnership with other Tucsonans to buy home listeners). KAIR 1490-AM. FFrank Kalil, right, “Mr. Color Radio” and Swinging Seven DJ Ray Lindstrom are Also suspected • July 1977: KRQ 93.7-FM goes on the sstill comfortable behind a microphone. of Breaking and air. Although KTKT continued to rank as the The KTKT homestead page labels him Entering market’s No. 1-rated station during most of ggathered at the Maverick to as the No. 1 Disc Jockey of All-Time — “The recall the heyday of their r Tucson’s vast the 1970s, within three years KRQ would best DJ Tucson ever had. Competitors station. Th e passage of s automotive surpass it in the ratings. came and went. They couldn’t beat Frank.” ttime was evident as the audience.” The Students flocked to their radios after the llong hair and tie dye of the ad, according to last school bell to catch Kalil’s program, 1960s were replaced by thinning and — or the Web page, procleverly placed in the 3-6 p.m. after-school bald — pates and orthopedic shoes. nounced the Swinging Seven DJ’s “guilty of timeslot. Probably the best known of the attendees kidnapping an audience at times greater “He was unofficially the program was “the Man With the Plan,” now-76-yearthan all other Tucson stations combined.” director without title, the one who ran the old Kalil who told the other 40 or so, “Well, Time flies, station ownership and machine that made KTKT the most popular here we are, former rock and rollers gathered formats change, and personalities move on radio station among teens in the 1950s and in a country and western bar to talk about — until Sept. 1 when former on-air platter what is now a Spanish language station.” spinners and other former KTKT staffers KTKT PAGE 9

Inside Media David Hatfield’s media column is scheduled to resume in the Sept. 21 issue.

Inside Tucson Business “I was a KTKT addict beginning in the 6th grade,” says Jim Franiks, retired Tucson Unified School District teacher and now director of admissions at St. Michael’s Parish Day School on the east side. “Like most early teens, I was glued to my transistor radio every day. The highlight of my week was going to Rubitom’s (a record store) and picking up the new KTKT Top 40 sheet and in 1966, I had all 52 chronologically arranged and frequently referred to,” he said. Every Saturday KTKT would start their playlist with No. 40 and count down to the song that topped the chart at No. 1 that week. On New Year’s Eve for six hours, DJ’s would unveil the Top 99 songs of the past year. And thats where the Franks love affair with the station started to unravel. “Being a top 40 junkie and a statistician, I noticed there didn’t appear to be any particular formula for creating the Top 99 and on Jan. 1, 1967, I became infuriated by their selection process. With all the arrogance and initiative of a 14-year-old, I called the station and proposed a points system to determine song popularity,” he said. Not only did he suggest an accurate way to chart the Top 99, he was given the job to do so, keeping a running tally every week on a song’s ranking. “On January 1, 1968, when they played my Top 100 songs of the previous year, my biggest disappointment was that they didn’t announce who had calculated the rankings,” Frankis said. “They did, however, present me with a box of 24 Mars bars and a Rubitom’s gift certificate, enough reward for me to compile statistics for three years until I became a senior in high school and relinquished the job.”




Lee Allen

â&#x20AC;&#x2122;60s,â&#x20AC;? according to the Tom Phillipsâ&#x20AC;&#x2122; Radio on the Border blog. â&#x20AC;&#x153;He demanded you act professional.â&#x20AC;? â&#x20AC;&#x153;Frank was my boss, a tough task-master who insisted on perfection,â&#x20AC;? said former Swinging Seven DJ Ray Lindstrom. â&#x20AC;&#x153;He wanted the station to be fast-paced, tight, no dead air â&#x20AC;&#x201D; fast, lively, and interesting. And we delivered. It was either that, or our jobs.â&#x20AC;? Kalil is still acting professional as the owner of Tucson-based Kalil & Co. Inc, which he describes as â&#x20AC;&#x153;the biggest media brokerage firm in the U.S.â&#x20AC;? As of a couple of years ago, Kalil & Co. reportedly did more business than all of the other media brokerage firms combined. â&#x20AC;&#x153;I can assure you there never was a plan for me to be a media broker. All I ever wanted to be was a deejay â&#x20AC;&#x201D; I loved it,â&#x20AC;? he says. â&#x20AC;&#x153;All that talent in one spot. No wonder we were great!â&#x20AC;? â&#x20AC;&#x153;Kalil made KTKT everything it was, long before I appeared without warning,â&#x20AC;? said Phil Richardson who spent a turbulent decade as station manager, â&#x20AC;&#x153;The apex of my long and checkered broadcasting career,â&#x20AC;? as he put it. Abruptly yanked from a DJ-sales job at KRUX radio in Phoenix, Richardson was transferred to Tucson in a matter of hours.

â&#x20AC;&#x153;How many people are offered the chance to run a radio station almost without any direction from owners?â&#x20AC;? he said. Ah, the good ole days when former Federal Communications Chairman Newton Minnow described non-network station KTKT as â&#x20AC;&#x153;broadcasting phonograph recordings interspersed with numerous commercial messages.â&#x20AC;? Lots of ads. â&#x20AC;&#x153;Minnows analysis of our programming was accurate,â&#x20AC;? says Richardson, â&#x20AC;&#x153;Up to seven commercials sandwiched between two 45 RPM Do-Wops.â&#x20AC;? But no one complained. A number of former KTKTers didnâ&#x20AC;&#x2122;t make it to the reunion â&#x20AC;&#x201D; some are now spinning discs for an audience of heavenly hosts, others are retired and have relocated. Those who did attend, made up a â&#x20AC;&#x153;blast from the pastâ&#x20AC;? playlist of professionals: Kalil; Lindstrom, Roger Collins, Ed Alexander, Jim Arnold, Tom Lang, Lou Waters, Bob Lee, Jim Gilley, Mike Letson, Jay Zucker, Jim Bednarek, Sharon Kha, John C. Scott and others.

DJ Roger Collins, left, with Lou Waters, who went on to be a TV anchor at KVOA 4, KOLD 13 and CNN and today is an Oro Valley Town Council member.

Lee Allen, a regular contributor to Inside Tucson Business, is himself a former KTKTer as a news and public affairs director. He says he still remembers the closing line for newscasts: â&#x20AC;&#x153;If you donâ&#x20AC;&#x2122;t want it heard on KTKT news ... donâ&#x20AC;&#x2122;t let it happen.â&#x20AC;?

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10 SEPTEMBER 7, 2012




New North’s Italian menu will Etherton Gallery opens emphasize fresh ingredients seminal ‘Easy Rider’ exhibit gatherings. The inspiration for the makeover comes from the company’s Executive Chef Christopher Curtiss who started his career in the San Francisco Bay MICHAEL LURIA Area before moving to Phoenix where he was behind the acclaimed Restaurant Noca before joining Fox Restaurant Concepts in 2011. Under the new concept, North Fattoria Italiana will still be open for lunch and dinner and will introduce brunch from 10 a.m. to 4 p.m. Saturdays and Sundays. • North Fattoria Italiana, 2995 E. Skyline Drive in La Encantada — www. — (520) 299-1500 Fox Restaurant Concepts

Much like it did a few years ago when it closed Zin Bistro to make it into Zinburger and freshened its original Wildflower American Cuisine, Fox Restaurant Concepts is doing another makeover, turning North Modern Italian at La Encantada into North Fattoria Italiana. The restaurant has been closed and the company is spending more on the remodel than it did on the original build-out nine years ago. When it reopens Sept. 19, the emphasis on using fresh ingredients — fattoria means farm in Italian. A prominent feature in the new restaurant will be a Berkel salumi slicer, a hand-cranked slicer with a precision-sharp blade, producing extraordinarily thin slices

The addition of a hand-cranked Berkel salumi slicer will play a major role in the new North Fattoria Italiana.

of cured meats, such as prosciutto. There also will be a home-made pasta table on “center stage” in front of the exhibition kitchen. Pizzas will also be a central part of the new menu. A series of cascading windows in the bar area will open to the outside patio complete with bar seating. The patios will be shaded with boldly striped awnings and citrus trees. A large fireplace on the back patio will welcome guests for cool weather

Halfway to St. Paddy’s If you haven’t noticed, six months have passed since St. Patrick’s Day. But you don’t have to wait another six months to celebrate an Irish holiday. Pastiche Modern Eatery will celebrate “half way to St. Paddy’s Day” by transforming itself into an Irish pub from 11:30 a.m. to 10 p.m. Sept. 17. • Pastiche Modern Eatery, 3025 N. Campbell Ave. in Campbell Village — www. — (520) 325-3333

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

This weekend, Etherton Gallery opens its first show of the 2012-2013 season with a blockbuster titled “Danny Lyon: The Bikeriders.” The show features seminal work by photographer Danny Lyon from the 1960s, which documented his time riding with a motorcycle gang and photographing them. This body of work, when first published, exposed the motorcycle counter-culture to mass media and was the inspiration for the 1969 film “Easy Rider.” Lyon also will be present at the opening reception, from 7-10 p.m. Saturday at the gallery, 135 S. Sixth Ave. The show runs through Oct. 27.

Museum Many Tucsonans might be surprised to find our city is home to one of the top photographic institutions in the country, the Center For Creative Photography. The center, at 1030 N. Olive Road on the University of Arizona campus near the southeast corner of East Speedway and Park Avenue, houses the archives of luminaries from the field of photography. Not only does it mount ambitious exhibitions throughout the year, it allows the public to come view prints one-on-one on a regular basis. While you can make an appointment to view specific works, you can also participate in scheduled “Photo Friday” events that feature a hand-selected group of images around a theme. Today, for example, the theme is “Family” and features well-known works from a variety of artists. The free viewing is from 11:30 a.m. to 3:30 p.m.

Theater The Rogue Theatre, 300 E. University Blvd., kicks off its season this weekend with a production of “Journey To The


West,” which tells the story of a 16th century monk and his journey of enlightenment to India. The play runs evenings Thursdays through Saturday and Sunday matinees through Sept. 23.

Film There are just four new films opening this weekend, with two at the multiplex and two at the Loft Cinema, 3233 E. Speedway. “The Words” starring Bradley Cooper, Zoe Saldana, Dennis Quaid and Jeremy Irons, is a story about a struggling writer who finds an unpublished manuscript he presents as his own work. It’s odd to see a big screen, mainstream film about morals and ethics, and the film does a good job at telling a story. Also opening this week is an action flick titled “The Cold Light of Day” about a young man’s attempt to get his family back after a kidnapping. It stars Sigourney Weaver, Bruce Willis and Henry Cavill. The Loft debuts two critically acclaimed films. “Sleepwalk With Me” is a new comedy from stand-up comedian Mike Birbiglia and Lauren Ambrose about the struggle of a man, his choices and the consequences. “Farewell My Queen” is set in the final days prior to the French Revolution and the court of Marie Antoinette starring Diane Kruger.

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






â&#x20AC;&#x2DC;Iâ&#x20AC;&#x2122;m not a bad rabbit, they just draw me that wayâ&#x20AC;&#x2122; Judging from some of the reaction I got after my Aug. 17 column, it seems some thought I was defending the nefarious practices of recruiters in the for-profit college industry. Clearly, there are serious problems in the education industry, be it in the non-profit or for-profit sectors. Dropout rates are as high as 80 percent in for-profit institutions. They are costly for taxpayers, students and especially the guarantors of their student loans. For-profit institutions do appear to put profits and executive compensation ahead of student outcomes. For example the total compensation (salary and stock) in 2009 for Robert Silberman, president of Strayer Education, was reported to have been $41.5 million. Andrew Clark, CEO of Bridgeport Education, received $20.5 million. Compensation for the presidents of the top eight Ivy League colleges averaged a mere $1.1 million. Iâ&#x20AC;&#x2122;m just not at all certain of how much blame can be laid at the feet of the recruiters and their tactics. Whatâ&#x20AC;&#x2122;s happening here reminds me of the franchising industry 30 years ago. One of the major draws for prospective buyers was that the failure rates were represented to be far lower than those for independent start ups. The International Franchise Association maintained at the time that only 2 percent of franchisees failed, when in fact more than half of franchisees either went out of business or were forced to sell at a loss. The government became concerned when failed franchisees defaulted on some thousands of Small Business Administration loans used to finance license fees and start up costs. Gradually a uniform code developed that regulated franchising in all 50 states. Franchisors also realized that too many failed franchisees would kill their own franchising programs. In fact, roughly 60 percent of all new franchisors stopped franchising after only three to four years. Over time, enlightened franchisors learned how to select only the most qualified candidates. Itâ&#x20AC;&#x2122;s time for something similar to happen in the college / trade school industry. In 2009, California passed the Postsecondary Education Act requiring institutions to provide: 1. Completion rates for each program of instruction 2. Placement rates for each program of instruction 3. License-examination rates 4. Salary or wage information for each career, occupation, trade, job or job title for which students are prepared Most recruiters now carefully toe the line. One 13-year veteran said during an interview recently, â&#x20AC;&#x153;Our job description has also changed. Weâ&#x20AC;&#x2122;re no longer â&#x20AC;&#x2DC;enrollment

councilors.â&#x20AC;&#x2122; Weâ&#x20AC;&#x2122;re now â&#x20AC;&#x2DC;graduation coachesâ&#x20AC;&#x2122; and â&#x20AC;&#x2DC;academic councilors.â&#x20AC;&#x2122; This means that weâ&#x20AC;&#x2122;re personally responsible for helping each student that we SAM WILLIAMS recruit make it through any rough spots and to graduate.â&#x20AC;? The recruiter went on to say the position is now salaried and, although there are quotas to be met, commissions no longer exist. Performance reviews include student retention rates. So, as I reflect on the report from U.S. Sen. Tom Harkin, D-Iowa, on the business and recruiting (sales) practices of for-profit colleges, I am reminded of the quote from Jessica Rabbit in the movie â&#x20AC;&#x153;Who Framed Roger Rabbit,â&#x20AC;? â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m not a bad rabbit. They just draw me that way.â&#x20AC;? Substitute â&#x20AC;&#x153;enrollment councilorsâ&#x20AC;? for â&#x20AC;&#x153;bad rabbit.â&#x20AC;?

Industry recruiting force Harkinâ&#x20AC;&#x2122;s report implies there are disproportionate numbers of recruiters when compared to the number of students, 35,000 to 1.7 million, or a ratio of one recruiter for every 49 students. On the other hand, according the U.S. Department of Laborâ&#x20AC;&#x2122;s Bureau of Labor Statistics, close to 12 million of us, or 10 percent of the total U.S. workforce, are employed in sales. It just takes a lot of effort to create revenues, and the ratio of recruiters to students in the for-profit education industry doesnâ&#x20AC;&#x2122;t seem that far out of line.

Lead generation Harkinâ&#x20AC;&#x2122;s report states that recruiters of forâ&#x20AC;&#x201C;profit colleges obtain lists of leads whom they subsequently contact via phone, mail and email. In some cases they even pay for leads! Please tell me, whatâ&#x20AC;&#x2122;s wrong with this practice? Marketing departments of all companies purchase or produce lists of people or companies that might be likely purchases of their products.

qualified leads but to identify target markets? And what better markets are there for educational institutions to approach?

Studies of 35,000 Sales Calls,â&#x20AC;? by British industrial psychologist Neil Rackham lays out just such a well accepted methodology.

Structured sales calls

Closing techniques

Other evidence of recruiting â&#x20AC;&#x153;abuseâ&#x20AC;? includes a training slide that lays out the objectives of a first call with a prospect: create trust, credibility and rapport; acquire simple preliminary information; create excitement and mystery; identify a plan, and; set a face-to-face appointment. These objectives are hardly predatory. They are usual and customary.

On page 68 of his report, Harkin reveals that â&#x20AC;&#x153;Recruitersâ&#x20AC;Śwere specifically trained to exploit the emotional vulnerabilities of prospective students by using an array of ethically questionable tactics. The techniques included pushing on â&#x20AC;&#x153;pain points,â&#x20AC;? â&#x20AC;&#x153;overcoming objectionsâ&#x20AC;? â&#x20AC;Śand â&#x20AC;&#x153;creating urgency.â&#x20AC;? If all of these practices are as evil as Sen. Harkin makes them out to be, then most good sales people are indeed well along the path to perdition. Remember, the author is well-versed in the more advanced arts of a very special sale known as â&#x20AC;&#x153;getting re-elected.â&#x20AC;? Harkin will be running (or â&#x20AC;&#x153;sellingâ&#x20AC;?) for his sixth term in November 2014.

Investigating for pain Recruiters are also accused of manipulating candidates by identifying and magnifying their fears and dreams. Diagrams included in the report and called the â&#x20AC;&#x153;Pain Funnel â&#x20AC;&#x153;and the â&#x20AC;&#x153;Pain Puzzleâ&#x20AC;? could have been drawn from any number of formal training programs for consultative sales skills. No complex sale has ever been closed without first identifying the needs, pains and fears of oneâ&#x20AC;&#x2122;s prospects. The classic text, â&#x20AC;&#x153;SPIN Selling, the Best-Validated Sales Method Available Today, Developed from Research




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Targeting of markets The report states that for-profit recruiters target and prey upon certain â&#x20AC;&#x153;vulnerableâ&#x20AC;? groups. One includes members of our military because they are either recipients of the GI Bill or they have the income to pay for education because they are employed by the government. Another consists of those who would be the first in their families to receive a degree. A third consists of those in low-paying, â&#x20AC;&#x153;dead endâ&#x20AC;? jobs who want to win better ones. How else would any enterprise generate

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

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1960s era led to founding of Up With People I.T. Genius


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They have performed in four Super Bowl half-time shows, were the first U.S. entertainers to visit and perform in the People’s Republic of China after the Bamboo Curtain fell in 1978, and performed in the Soviet Union in 1990, a year after the fall of the Iron Curtain. Thanks to the vision of John Blanton Belk Jr. along with the support of his wife Betty, Up With People began in Tucson in 1965. “Today, Up With People represents 22,000 young men and women from more than 108 countries who have come together to travel to deliver a common message of hope and goodwill to people around the world. They have pursued global education and personal growth through service, music and travel. More than 180 casts have lived in half a million homes around the world creating a message of building peace around the world,” says Belk in a drawl that gives away his roots from Richmond, Va. Jokingly, he says marrying Betty was an “arranged marriage.” The reality is that while Belk was serving as a World War II Naval cadet, his father asked him to come to Richmond to meet some visiting friends. Betty’s family was visiting from Summit, N.J. She wore a long pleated skirt and saddle shoes. Belk found himself smitten. After his The cast of Up With People on the Great Wall of China in 1978. service, they married. “Towards the end of that summer, 90 of “The world After World War II, Belk worked with them came to me and told me they wanted knows what you Moral Re-Armament, an ecumenical to present their show beyond Mackinac are against, but organization that sought to promote world Island and take it to the public,” Belk what do you understanding. His goal was to create world recalled. “We went to Cape Cod, got an old support?” Belk reconciliation by attempting to bring Japan barge, dressed it like a Mississippi showtold them. “When and Germany back into the family of nations. boat and sailed around the cape performyou are responDuring the turbulent 1960s, a prevalent ing free performances. A group of senators sible for your scene in the U.S. was one of hippies and congressmen, who were at the future, what do occupying university presidents offices. It Kennedy compound, came to see the show you want to was a time of demonstrations, around the MARY LEVY PEACHIN and asked if I would bring the show to build?” world from the University of California in Washington, D.C.” Music was the Berkeley to the Sorbonne in Paris, and to A 72-person congressional committee medium of the generation. He told them to San Marcus University in Lima, Peru. had arranged a performance venue at the bring their instruments. Belk was at a point in his life when he Washington Hilton Hotel. Thousands came from across the U.S. to was ready to take on a big challenge. He “More than 5,000 people attended. Mackinac Island, Mich. gathered student There was thunderous applause and a “We put up tents leaders from half a standing ovation,” Belk remembered, and a had a hootenanBIZ FACTS dozen universities adding that backstage after the perforny,” Belk said, noting n challenging them to Up With People mance, “A member of the committee told that it was four years t find a “positive voice” the Woodstock me ‘Mr. Belk, we’ve got something going. b The performance group Up With People still before as an alternative to Did you see Senator Goldwater sitting next Festival. F exists, though its headquarters are now in what he regarded as to Senator Fulbright?’” Denver. Issues in 1965 the negativism of the Arizona’s Republican Sen. Barry were civil rights, the w times. ter and Arkansas’ Democratic Sen. James war in Vietnam, and w “I decided to do 1-877-264-8856 or (303) 460-7100 Fulbright were about as politically oppostie a dichotomy between something about it. I Former cast members hold annual summer the as two senators could be in those days. t old and the wanted to feel like I reunions. Next year’s reunion is scheduled Encourage by the reception, “Betty and I young, which could y could do something from July 25-28 at the Westin La Paloma took a great leap of faith and said we’ll keep be characterized by b that would make a Resort and Spa. them singing. At that time Herbie Allen, the t young people’s difference in the Steve, Paul and Ralph Colwell and Don expression “Don’t e world,” he said. Birdsall were helping me. That in a sense, was trust anyone over 30.” In 1964, Belk met with four student body the beginning of Up With People,” Belk said. The get together on Mackinac Island presidents to tell them that he would like to Up With People started with no outside resulted in an amateur show called “Sing hold a summer conference. “What are the funding, so the group had to come up with Out 65.” rules?” they asked.




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The late F. James “Jim” McDonald, then president and CEO of General Motors, and Betty and Blanton Belk meet with Pope John Paul II after a concert in 1985.

ideas to make it work. “We came up with the idea of having host families for the cast. That would grow to half million homes around the world, and it was one of the program’s greatest educational experiences,” Belk said. “During their annual tours, each cast member would stay with 60 to 80 different families. In 1965-’66, we had 90 in the cast, within two years, we had two casts.” He remembers one time flying home from Mexico and landing on an airstrip in Nogales when a woman ran out to the plane telling Belk that former President Dwight Eisenhower was on the telephone. “How the hell did he know that I landing there,” Belk said. “The general said to me, ‘I have just met with one of your young Japanese students. I knew her father when he was a member of Japan’s Diet (Congress). She tells me that you already have 600 students participating in your program. My vision is that some day 6 million students will have this global education experience’.” For years Up With People had its headquarters at 3103 N. Campbell Ave. in Tucson. In 1990, after a 25th anniversary performance in Denver, the group was wooed away by that city’s major fundraisers and foundations. Belk recalled an early private performance at New York City’s Pierre Hotel. A tall gentlemen who had hung around after the show finally asked one of the students, “who is in charge of this outfit?” He came over to Belk and introduced himself as DeWitt Wallace. “I have been terribly moved by your

performance,” Belk recalled the man saying. Not knowing who he was, Belk declined the man’s invitation to meet with him in Pleasantville the next day because he was on his way to attend the funeral Konrad Adenauer, who had been former chancellor of West Germany. That’s when Belk’s wife Betty stepped in and volunteered that Belk would change his travel plans and leave a day later. She recognized DeWitt Wallace, a founder of Reader’s Digest. That meeting led to some of Up With People’s first funding. And Wallace himself donated more than $1 million to the organization. The CEOs of major corporations, world wide royalty, and popes have been friends of the Belks. They have traveled the world meeting dignitaries. Now in his spare time, Belk fishes and hunts all over the world. The Belks have two daughters. Both were cast members of Up With People and did their own fund raising to travel. Now the Belks have four grandchildren. In March this year the Up With People archives — including photos of the cast at the Great Wall of China and Belk’s meetings with former President Eisenhower and Pope Paul II — were donated to the University of Arizona Libraries. Blanton and Betty Belk took on a big challenge. And with it succeeded in contributing to world understanding.

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

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14 SEPTEMBER 7, 2012



Author shares 8 pillars to getting ‘The Trust Edge’

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I had the opportunity not long ago to listen to a presentation by David Horsager, author of “The Trust Edge.” His book offers a practical guide for leaders on how to implement Eight Pillars of Trust in order to enjoy better relationships, reputations, retention, revenue and results. Horsager agreed to let Better Business Bureau publish a good portion of a recent article he penned that will provide you a synopsis of his Eight Pillars of Trust. His book offers much more detail on each pillar, including practical ways to build these pillars into every aspect of your business, organization and relationships. Enjoy: Without trust leaders lose teams and sales people lose sales. Without trust we all lose productivity, retention of good people, reputation, morale and revenue. The lower the trust the more time everything takes, the more everything costs, and the lower the loyalty of everyone involved. However, with greater trust come greater innovation, creativity, freedom, morale, and a bigger bottom line. All of my master’s research points to the

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fact that trust is the unique commonality of the most successful leaders and organizations. Obtaining this level of trust isn’t easy. If you are looking for a quick fix, don’t look to KIM STATES trust. While it may appear to be static, in reality it is more like a forest—a long time growing, but easily burned down with a touch of carelessness. Trust is by nature solid and proven. Without trust, no lasting genuine success exists — just a brittle, fluffy, mirage of the real thing. The good news is that we can build this fundamental key to success. It is worth it! And it is the ONLY way to genuine relational or organizational success. Following is a synopsis of the eight pillars that build the Trust Edge. 1. Consistency: It’s the little things, done consistently, that make the big difference. In every area of life it is the little things.




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GOOD BUSINESS If I am over weight, it is because I have eaten to many calories over time, not because I ate too much yesterday. If I am a good husband, I am doing the little things that honor my wife on a daily basis. It is the same in business. The little things done consistently make for leaders being followed, increased sales and retention, and a higher level of trust. Consistency is the way brands are built and character is revealed. Even if we don’t like McDonalds, we trust them because they deliver the same burger in Cleveland as in Tokyo. Do the little things, consistently. 2. Clarity: People trust the clear and mistrust or distrust the ambiguous. Be clear about your mission, purpose, expectations, and daily activities. When people are clear about the mission, they do the little things differently. A clear mission unifies and inspires. When a manager is clear in expectations, she will likely get what she wants. When we are clear about priorities on a daily basis we become productive and effective. 3. Compassion: Think beyond yourself. Never underestimate the power of sincerely caring. It is the reason we trust our mothers over some sales people. We are skeptical if the sales person really has our best interest in mind. “Do unto others as you would have them do unto you” is not just an old saying; it is a bottom line truth. If followed it builds trust. 4. Character: Do what is right over what is easy. Character is a mix of two things. One is integrity, which means being the same from beliefs to words to actions. The other is moral character. It could be argued that Hitler had great integrity but low moral character. Most people know what is right. It is doing what’s right that is the difficult.

We know we should respond to that email or stop watching TV and exercise or read to the kids. Take the high road in every interaction. 5. Contribution: Few things build trust quicker than actual results. Be a contributor that delivers real results! 6. Competency: Staying fresh, relevant and capable builds trust. The humble teachable person keeps learning new and better ways of doing things. They stay current on ideas and trends. According to one study, the key competency of new MBAs is not a specific skill, but rather the ability to learn amidst chaos. Arrogance and a “Been-there-done-that” attitude keep people from growing. There is always more to learn so make a habit of reading, learning, and listening to fresh information. 7. Connection: People want to follow, buy from and be around friends. People become friends when they build connection. Ask questions. Listen. Life, work, and trust are about relationships. All relationships are best built by establishing genuine connection. 8. Commitment: Stick with it through adversity. Followers trusted General Patton, Martin Luther King Jr., Gandhi, Jesus and George Washington because they saw commitment. They saw sacrifice for the greater good. Commitment reveals and it builds trust. Trust does not start with the economy or government. It starts with individuals becoming trusted.

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David Horsager, MA, CSP is an award-winning speaker, entrepreneur and business strategist. He has led organizations and energized audiences on four continents toward gaining the Trust Edge. He has more online at or call 1-800-608-8969.

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B! A T R E ETT L S W E EN H T K C I CL D N A M .CO S S E N I BUS N O S C ETU Are you interested in business D I S N I O news everyday? SO ARE WE! GO T Sign up today and receive the Inside Tucson Business e-newsletter directly to your inbox everyday.


16 SEPTEMBER 7, 2012



Arizona Petroleum keeps pumps going to rebuild market for biodiesel By Clayton R. Norman Inside Tucson Business

Clayton R. Norman

Arizona Petroleum, a division of Denver-based Colorado Petroleum Products Co., is preparing to pick up it’s second load of biodiesel from a newlyopened terminal in Clovis, N.M. The first 7,000 gallon load from the facility, which is owned by Renewable Energy Group (REG), is almost gone said Arizona Petroleum administration manager Arizona Petroleum Administration Jerry Kachenko hopes to keep prices down and rebuild the retail market for biodiesel in Tucson. Manager Jerry Kachenko. Arizona Petroleum has been blending lubrihead-to-head with them on h Affairs, Alicia Clancy, will have a capacity BIZ FACTS cants and fuels at its the of 15 million gallons of biodiesel annually t fuel business, so we facility at 1015 S, Cherry Arizona Petroleum looked for a little bit of a when completed. At the moment, Clancy l Ave. since 1990. In 2002, 1015 S. Cherry Ave. niche and we got into the said, the facility is not producing biodiesel, n Pachenko said, the biodiesel business,” but only serving as a transportation hub for b (520) 623-4721 company started to have Kachenko said. “Then in moving REG products into the Southwest. K an interest in alternative 2004 we got into (ethanol).” Clancy said REG has operated a plant 2 fuels and began selling Until recently, Arizona producing biodiesel in Houston, Texas for biodiesel. Petroleum’s biodiesel came from a facility several years. “We were looking for a little bit of a in Ralston, Iowa. The new REG plant in Clancy said REG is “excited by the enthusiniche because we didn’t have the strength Clovis, which is about 40 percent complete, asm” that Arizona Petroleum and other groups that some of our competitors had to go according to REG Manager of Corporate like Clean Cities Coalitions in Tucson and New



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Mexico have shown for raising awareness about biodiesel in the region. Kachenko said REG’s push into the Southwest is good news for Arizona Petroleum. “Until this point we had been trucking it ourselves or buying railcar or paying a trucking company to run it from Ralston, Iowa to Tucson,” he said. “As you can figure there’s a whole lot more miles between Rawlston and Tucson than between Clovis and Tucson.” Ralston is about 1,470 highway miles from Tucson. Clovis is 575 miles away — less than half the distance. Kachenko can send his own Arizona Petroleum trucks to pick up a load and save on the cost of going out-of-house for shipping the product. Kachenko picks up B99 biodiesel from the Clovis facility — that is 99 percent biodiesel and 1 percent regular, petroleumbased diesel — and at the South Cherry location it is blended down to B20 and B5 biodiesel, which are 20 percent and 5 percent, respectively, blends of biodiesel. With the proximity of the new REG facility, Kachenko said, he is able to price his biodiesel competitively with regular diesel. Last month Kachenko said he had B5 and B20 biodiesel priced about $3.949⁄10 per gallon and B99 at $4.159⁄10 per gallon. “We generally try and market our B5 and B20 at the regular price at which we market our diesel,” Kachenko said. “That way you’re getting the benefits of the biodiesel but paying the same price... I think we’ll be able to keep it competitive with the new facility being so close.” Earlier in August, the U.S. Senate approved the reinstatement of a $1 per gallon tax benefit on biodiesel purchases. Kachenko said he hopes the House of Representatives will pass the bill reinstating the incentive by sometime in September. Biodiesel producers generated nearly 1.1 billion gallons of fuel in 2011 and supported some 39,000 jobs nationally, according to information on a National Biodiesel Board (NBB) website. The NBB credits reinstatement of the tax incentive after it expired in 2010 with last year’s growth in the industry. Arizona Petroleum has 20 employees in Tucson, Pachenko said. He said many biofuels producers have been a “holding pattern” since the incentive expired again at the end of last year. Since then the price of biodiesel has gone up, Kachenko said, and retail sales of biodiesel in the area have dried up. He’s hoping that quick action from the House on bringing the incentive back and the improved logistics of picking up biodiesel in Clovis will help. “With the Clovis facility we can keep it competitive and if the tax incentive comes back we can drive the price back down,” Kachenko said. “But we still almost have to start at square one again to rebuild the retail market.”




records list the president as Donald Medoff. At one time, Solar Industries employed over 300 people and had branch operations in Phoenix, New Mexico, California and Nevada.

Next up: Locally-owned restaurants, Chainowned restaurants 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. 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 • Oct. 12: Franchises, Employment agencies If your business fits one of these categories, now is the time to update your profile. Go to 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.


$2.6M tax lien filed on Solar Industries Inc. The Internal Revenue Service has filed a $2.6 million federal tax lien against Tucsonbased Solar Industries Inc., a once-thriving skylight, window and door manufacturer. According to public records, the unpaid assessments date back to 2008. The company, headquartered at 6151 S. Tucson Blvd., opened in 1979. Public


Walgreens launches new customer loyalty program

received more than $1 million as a result of his use of company checks and credit card charges. Narum’s employment was terminated in 2008, after company employees discovered, while Narum was on vacation, multiple unauthorized payments made to him. He paid back approximately $61,049 to Young & Sons before he was fired.

Walgreen Co., operator of 248 Walgreens stores in Arizona, has become the latest retailer to launch a customer loyalty program. Called Balance Rewards and launched Thursday, the program allows members to redeem points to receive up to $50 in free products. Walgreens says its program will take advantage of the latest technology, including a smartphone application that will allow participants to scan the face of their phone at the register for automatic discounts. The company said it is also introducing a new store concept called the Well Experience that it is using in newly constructed stores as well as at locations being remodeled.


Oro Valley state of town next week Oro Valley Mayor Satish Hiremath is scheduled to give his his third state of the town address at a luncheon Thursday (Sept. 13) starting at 11:30 a.m. at the Hilton Tucson El Conquistador Golf and Tennis Resort, 10000 N. Oracle Road, Oro Valley. The Greater Oro Valley Chamber of Commerce will host the event.


Former Marana man gets 48 months for fraud A judge in Federal Court in Tucson has sentenced Phillip E. Narum, 46, formerly of Marana, to 48 months in prison. In March a jury found Narum guilty of 14 counts of wire fraud for defrauding his employer with the use of wire transfers, a company credit card and company checks. Evidence presented at trial showed that in 2004, Narum was hired as an independent contractor at Young and Sons Contracting, Inc., a family owned and operated construction firm. Although Narum was entitled to approximately $413,673 in compensation for the period of Nov. 2004 to June 2008, he

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18 SEPTEMBER 7, 2012



With financial advisors, remember to trust, but verify Everyone loved Bernie, a successful, respected financial expert. He was founder of the Nasdaq stock exchange and served a term as its chair. His clients included Zsa Zsa Gabor, Kevin Bacon and Steven Spielberg as well as banks and charities across the U.S. The affluent and influential pursued the opportunity to rub elbows with Bernie and bask in the sunlight of his success. Clients trusted Bernie with their entire estates. But, it was all a Ponzi scheme that wasn’t discovered until Bernie Madoff confessed. According to some, examinations by the Securities and Exchange Commission (SEC) of Madoff ’s dealings fell far short. Madoff himself later said he was “astonished” the SEC failed to catch him. In 2009, Madoff pled guilty to the charges against him and was sentenced to 150 years in prison the following June. Maybe you have never been involved with a high-profile con artist but there are lowprofile scammers just looking for a victim to rip off. It could even be your own advisor. Con artists will lie and cheat to convince their victims they will have an incredible return on investment by taking advantage of trust or weakness, loneliness or simple ignorance in order to swindle money from clients or victims. They lack a conscience. At the same time, there is always a “greed” factor that makes victims susceptible. As I am in the financial field, I have seen and read innumerable accounts of investment scams. Many committed by “trusted advisors” who got into their own financial difficulty and took advantage of their clients. I have had two clients victimized this way in the last year. I will share their stories with you in hopes you will be leery of similar approaches or requests by an advisor you use. Obviously I won’t reveal names. Client No. 1, Mr. and Mrs. Smith, listened regularly to a financial advisor who had a radio show. He was from Phoenix but his show aired in multiple cities. The Smiths subsequently met with the man and rolled over their 401(k). This was a legitimate transaction. The advisor had earned their trust. Once the advisor had the Smiths’ confidence, he offered them an incredible opportunity to participate in an initial public offering that would bring them 15 to 20 percent returns in the first year. He convinced them to remove $100,000 from their 401(k) telling them it would be considered a rollover. When I asked to see the paperwork, they had just one page that didn’t define the company, the investment or contact information. After giving the advisor the money they did not hear from him again.

I immediately checked on this advisor’s brokers license and found he had been suspended due to other fraud allegations under investigation. Then I checked the Department of SUSAN MOORE Insurance and found his license had expired. Next, I called the FBI, which is now investigating the case. Client No. 2, Mrs. Jones, had worked with her advisor for more than a year. He had befriended her with his charm and compliments. After completing a legitimate transaction, he came to her and said he needed money for a personal situation and hoped he could count on her for a small, $20,000 loan that would be repaid in a few weeks. He never paid it back nor did he return her calls. The only subsequent communication was a letter from the advisor’s lawyer saying he had declared bankruptcy. Not only were both of these clients ripped off by a “trusted advisor” but to add insult to injury, the money was taken from their individual retirement accounts and, consequently, they were responsible for paying the taxes on the withdrawals. It’s your money. You have every right to check out your advisor’s background. Due diligence is your responsibility. Never invest your money without researching the person and the product or investment. Remember President Ronald Reagan’s admonition: “Trust but verify.” It applies here. Here are some resources: • For the latest financial scams go to • The Securities and Exchange Commission’s (SEC) website is or call 1-800-732-0330 • Check registered brokers at www. , go to Broker Check • Arizona Corporation Commission, securities division can be reached at (602) 542-4242 • Arizona Department of Insurance is at • Better Business Bureau of Southern Arizona is at or (520) 888-5353

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

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

Company Name


Sep. 5 Aug. 29 Change

52-Week 52-Week Low High

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


0.04 0.02 11.91 40.41

0.04 0.02 11.57 40.78

0.00 0.00 0.34 -0.37

0.03 0.01 8.35 34.28

0.43 0.10 15.94 42.10

8.52 0.48 2.63 7.95 57.74 7.59 84.25 17.91 57.72 3.38 17.01 29.77 33.71 27.24 32.36 15.84 98.22 42.70 45.53 8.88 74.88 56.96 19.44 35.25 28.21 56.54 57.52 195.04 32.56 58.29 5.46 37.01 33.57 11.35 51.20 22.56 1.50 32.88 28.10 40.93 59.99 39.87 37.40 37.24 46.74 66.52 25.96 14.04 56.84 45.49 16.50 40.98 52.11 9.06 9.09 43.52 32.30 63.73 16.94 28.52 42.25 19.07 119.23 28.19 11.22 33.08 73.55 35.88 33.75 9.37 19.36

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

-0.02 0.03 -0.11 -0.05 -1.09 0.28 -0.30 -0.30 -0.59 -0.14 -0.40 -0.14 -0.24 0.08 -0.13 0.24 1.11 1.32 0.10 0.27 -0.96 -0.59 0.69 -0.33 0.06 -0.30 -1.21 -0.04 -0.44 -0.72 -0.17 -0.29 0.48 0.51 -1.10 0.41 0.07 0.66 -0.24 0.56 0.20 -0.60 -0.20 1.02 0.36 -0.73 -0.27 0.64 0.10 0.19 0.92 0.08 -5.34 0.35 0.20 0.49 0.71 -0.53 0.14 -0.88 0.40 0.74 -3.55 1.64 0.77 -0.42 0.78 0.58 -0.32 0.17 0.06

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 24.38 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

12.34 3.63 4.06 10.10 61.40 9.94 86.01 28.53 60.00 4.93 21.16 38.40 35.16 28.79 33.80 15.99 99.28 43.43 48.69 12.25 76.48 67.20 19.59 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 33.14 32.29 41.80 62.83 42.17 40.45 38.65 48.31 70.20 43.18 14.08 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.




Finalists named for MPA Common Ground awards By Roger Yohem Inside Tucson Business Finalists have been announced for the Metropolitan Pima Alliance’s 2012 Common Ground Awards celebrating collaboration between the private and public sectors, neighborhood and special interest groups, and other stakeholders. The annual program recognizes “successful cooperation” in areas such as land development, economic development, revitalization, planning/design, and public policy “for the overall benefit of the community,” said MPA executive director Amber Smith. The recipients of a special Award of Distinction already have been determined, she added. This honor goes to the University of Arizona and City of Tucson for the university baseball team’s move to city-owned Hi Corbett Field. The finalists by category are: • Community building: Bring Back the Splash, which reopened several City of Tucson pools that had been closed due to budget cuts; First Impressions, a project to landscape road medians leading out of Tucson International Airport; Literacy Connects, a merger of five literacy organizations into one; and the new Sahuarita Town Center. • Economic development: Pima County’s land acquisition to provide a buffer for Raytheon Missile Systems and a future aerospace business park; Tucson Technology Corridor, an economic development marketing program at the University of Arizona Technology Park; and the UA Tech Park’s Business Development Program. • Planning/design/construction: El Corredor, an Oro Valley project to convert a partially built failed hotel into apartments; First Avenue/Grant Road revitalization ef-

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




$159,950 4,161 382 385 268

$134,250 4,087 337 333 222

Source: Long Realty Research Center

emonies starting at 5:30 p.m. Nov. 30 at the Westward Look Wyndham Grand Resort and Spa, 245 E. Ina Road. Tickets are $125 each if purchased by Oct. 31. Buy them online at or call (520) 878-8811. This year’s title sponsor is HSL Properties.

Campbell is ‘Good Neighbor’

Michael Campbell

fort to allow for a Walgreens store to be built; Tucson Medical Center campus improvements; and Valencia Crossing annexation into the city of Tucson of 350 acres near Interstate 10 and Valencia Road. • Programs/events: Connecting Tucson, a resource fair for people with disabilities; Dispose-A-Med, a Pima County outreach program to provide safe and effective methods for disposal of drugs; Southern Arizona Candidate Academy, a program teaching attendees about issues and details for people interested in running for public office. • Public policy: City of Tucson/Gateway redevelopment promoting revitalization of gateways to downtown Tucson; the effort to simplify the City of Tucson’s land use code; and the initiative that resulted in lower connection fees to Pima County’s sewer system. • Public works: Tucson Police Department’s crime lab; Cortaro Road loop and underpass at I-10; Cushing Street/Gutierrez Bridge across the Santa Cruz River; and Oro Valley/City of Tucson delivery of Central Arizona Project water. • Revitalization: Ben’s Bells downtown studio; development by the City of Tucson of Blue Moon Community Garden, a barrier-free community garden near the Oracle Road-Drachman Street intersection; and Downtown Tucson Partnership’s Toole Avenue streetscape. Award-winners will be announced in cer-



Last Week


One 12 Month 12 Month Year Ago High Low

3.63% 3.875%APR 3.50% 3.75%APR 4.95% 2.88% 3.125%APR 2.88% 3.125% APR 4.22% 2.75% 3.00%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% 2.88%

Michael Campbell, president of the Hearth Foundation and an associate broker with Coldwell Banker Residential Brokerage, is one of 10 national finalists for the real estate industry’s Good Neighbor Award. The honor is presented by the National Association of Realtors and Realtor magazine. The nonprofit Hearth Foundation provides transitional housing for low-income families. Campbell is credited with reorganizing and stabilizing the organization, and establishing partnerships with other organizations to provide services to the residents. He recently secured a $720,000 grant that allowed the foundation to make muchneeded renovations to the property. In October, the 10 finalists will be honored at the National Association of Realtors Conference in Orlando, Fla. In support of their respective community service projects, five finalists will each receive $10,000 grants. The remaining five honorable mention recipients will each receive $2,500 grants. Campbell has spent his entire 28-year real estate career with Coldwell Banker, 2890 E. Skyline Drive, Suite 250. He is a Certified Residential Specialist, Certified Relocation Specialist, and Previews Property Specialist. Earlier in his career, he was a university professor.

Solfisburg to Tucson Realty Veteran broker Robert Solfisburg has joined Tucson Realty & Trust as a land and investment specialist. He has more than 30 years of local land brokerage experience, including 18 years with Grubb & Ellis. For the past seven years, he was with JBS Real Estate. Tucson Realty President George “Hank” Amos said Solfisburg’s expertise will enable him to focus on market valuation and consulting services for vacant land investment and/or development opportunities, including rezoning and change of land uses. His contact information is or (520) 577-7000.

Maracay’s Smart Move Maracay Homes’ newest sales program allows consumers to buy a new Maracay Home and delay the sale of their existing home until the real estate market improves. For a fee, the company’s Smart Move Advantage project manages and guarantees rental of clients’ homes for up to three years. Andy Warren, presaident of Maracay Homes, said the strategy allows existing ho-

meowners to take advantage of historically low interest rates to buy a new home. Based in Scottsdale, Maracay Homes has five communities in Southern Arizona.

Homes with horses The developers of a rural community between Vail and Benson want to lasso some new buyers by offering specialized custom home lots where they can keep horses. The 2.5- to 5-acre parcels are available at Red Hawk at J6 Ranch, about 20 miles east of Tucson. “We saw a demand from buyers who want to have horses on their property without a large land purchase. The homeowners were receptive to the idea and we think it is the best land value for horse lovers on the market,” said Tricia Friedrich, a broker with Western Land Investments, 2850 E. Skyline Drive. Western Land co-manages Red Hawk at J6 Ranch with J.V. Properties. The development is south of Interstate 10 off Exit 297 in Cochise Country. Custom home lots start at $59,900. Red Hawk at J6 Ranch is fully improved with all utilities and paved roads in place.

Sales and leases • New Renaissance Christian Church purchased a 3,355 square-foot building at 1436 E. Benson Highway for $199,000 from John P. Wilkey, represented by Paul Hooker, Picor Commercial Real Estate Services. • Motorola Solutions leased 4,304 square feet at 3865 N. Business Center Drive, Suite 121, from NTBC Trust Partners LLC, represented by Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services. The tenant was represented by Bob Delaney, CBRE. • Medassure Inc. leased 3,145 square feet at 1955 W. Grant Road, Suite 235, from West Grant Centre LP, represented by Ron Zimmerman, Newmark Grubb Knight Frank. The tenant was represented by Paul Hooker and Jeff Zellet, Picor Commercial Real Estate Services. • TGK Industries leased 3,025 square feet at 752 E. 46th St., from Rich Rodgers Investments Inc. represented by Brandon Rodgers, Picor Commercial Real Estate Services. • Redline Executives leased 1,944 square feet at 3690 S. Park Ave., Suite 809, from Gateway Industrial Park LLC, represented by Pat Welchert and Jeff Zellet, Picor Commercial Real Estate Services. • The Center for Employment Dispute Resolution leased 1,920 square feet at 2015 N. Forbes Blvd., Suite 110, from Forbes Tucson LLC, represented by Rob Glaser, Picor Commercial Real Estate Services.

Email news items for this column to Inside Real Estate & Construction appears weekly.

20 SEPTEMBER 7, 2012



It’s happening... in other places When I moved here permanently back about 40 years ago I remember feeling like Tucson was down in a corner of the country while most of the action in the U.S. was taking place on latitudes north of us. Obviously, I learned to deal with it, but I got a recurrence of that feeling again this week after returning from a Labor Day weekend visit with family in San Francisco. Some would have us believe DAVID HATFIELD businesses are just itching to escape oppression in California and a carefully placed phone call from an Arizona economic developer could turn the trick. If there’s one place in California you’d think would be especially ripe for such a pitch it would be San Francisco — a city that has a 1.5 percent payroll tax, a minimum wage of $10.24 an hour (the highest in the U.S. and above California’s $8.00 an-hour minimum), mandates paid sick leave for employees and requires any business with 20 or more employees to either offer health insurance or help pay for the city’s health care access program, called Healthy San Francisco. That may sound oppressive but a business contemplating a move out of the city, would face a serious challenge finding employees. A move someplace else in the Bay Area might work — maybe down the peninsula to Silicon Valley or to the East Bay — but not to Arizona. It’s not like people necessarily have strong negative feelings about our state. We’re simply not on their radar. I don’t pretend I was doing any kind of meaningful research on this trip. After all, it was to be with family, our son and my brother and his family. My brother’s software firm is in San Francisco because the city is centrally located and easy to get to from the entire Bay Area. Our son and his friends — many of whom grew up in Tucson — like all that there is to do in San Francisco. If you really want to get an idea of how Tucson has been left in the dust, you need look no further than our restaurants. I challenge you to name a Tucson restaurant that has opened in the last year that generated buzz and genuinely altered the culinary scene here. Promising things are said about Agustín Brasserie in the Mercado San Agustín that opened in March. Unique restaurants are opening almost weekly in San Francisco. I get it that San Francisco is the country’s 14th largest city in population and Tucson is 33rd, according to the 2010 Census, but we ought to have some semblance of a creative community — and that includes chefs — that can make a splash every once in a while. Reporter Patrick McNamara in our office thinks Tucson’s lag has something to do with the fact that we don’t have much agriculture here while northern California capitalized on the “farm to table” phenomenon combining nearby fresh ingredients. But even in San Francisco, while fresh is de rigueur, restaurants are expanding and no longer confining themselves to what’s nearby. Of the restaurants we visited, one was French and another was Italian and both featured only wines from those countries. It’s one thing to hear and see the data from University of Arizona economist Marshall Vest about how the Tucson region is still sputtering, but there’s nothing like a trip out of town to really show how stuck we are. There are a lot of things happening across this country. We’ve got to make more of it happen in Tucson.

Contact David Hatfield at or (520) 295-4237.


Incentives can’t revive Westerns There was a time when it was a rather common sight to see the likes of movie stars in Tucson. John Wayne, Michael Landon and Merlin Olsen came here frequently to shoot movies and TV shows. Go back farther and the list of stars includes Gene Autry, Bing Crosby all the way back to 1939 when William Holden and Jean Arthur starred in the movie “Arizona” for which Old Tucson was originally built. To be sure it’s disappointing that Tucson no longer holds the allure for Hollywood filmmakers. So how much are we as a state willing to spend to try to gain back what we’ve lost? Arizona had a film incentive program that until the end 2010. Efforts to keep it going or start a new one have failed in the Legislature each of the last three years. Supporters are gearing up to try yet again next session. The trouble is, the movie and TV industries are about as fickle as the audiences they’re trying to entertain. Just having an incentive program doesn’t mean the industry will come back. Indeed, 37 states currently offer some kind of film incentive program. At best they’ve been shown to have mixed results. More states are getting rid of them than adding them. Under Arizona’s previous incentive program, production companies who spent $250,000 to $1 million could receive back 20 percent of their qualified production expenses. For productions of more than $1 million the rebate was 30 percent. Qualified production expenses included wages paid to Arizona residents. Subsequent efforts to revive an incentive generally reduced the percentage of rebates but included other provisions such as additional rebates for capital expenses used to build production facilities. The idea was to encourage the industry to do more in Arizona besides filming exterior shots and then editing and producing a movie or TV show somewhere else. At one time there were five film studios in Arizona. Currently there are none.

Supporters of an incentive program for the film industry point to New Mexico as a state that hurt Arizona by luring film productions there. Except New Mexico’s program is different than any that have so far been proposed for Arizona. And it is now the target of an effort from Gov. Susana Martinez, a Republican, who wants to get rid of it as an expense the state can no longer afford. Under New Mexico’s incentive, the state offers no-interest loans of up to $15 million for each film or TV production. The program required 85 percent of principal photography to take place in New Mexico and required 60 percent of total below-the-line wages go to New Mexico residents. Last year, Martinez was successful in getting the loan program capped at a total of $50 million. Opponents of New Mexico’s program note that “The Avengers” movie is now the third highest grossing motion picture in Hollywood history, having taken in more than $1.5 billion so far. Since 80 percent of the movie was shot in and around Albuquerque, the Walt Disney Co. got $22 million in tax credits from the state of New Mexico. Of course if the Disney Co. had not shot “The Avengers” in New Mexico, the state wouldn’t have had the money to give back to the company. And therein lies the dilemma. Unlike incentives such as the one that lured Intel to build a $300 million research and development facility in Chandler, there are no such promises for long-term job development coming from film companies that would take advantage of incentives in Arizona. Back in the heyday of film production around Tucson, most of the productions were Westerns. The the fact that the Western genre has ridden off into the sunset had a lot to do with the film industry leaving Tucson. It remains questionable at best whether incentives will change that.




Raùl H. Castro is Arizona’s only Hispanic governor. His autobiography, “Adversity is My Angel,” illustrates his extraordinary perseverance and ingenuity in spite of his extreme poverty. In this inspiring account, Castro entertains the reader with his sense of humor. Castro was born June 12, 1916, in Cananea, Sonora. He was one of 11 children. When he was 10 years-old his parents moved to Douglas where his father worked in the mine until his death at the age of 43. All of the children helped their mother, who was a midwife. Castro credits a sixth grade teacher with inspiring him to do his best. He worked hard for good grades and participated in athletics, drama, and edited the school paper. CAROL WEST When Arizona’s first governor George W.P. Hunt came to Douglas, young Castro went to the park to hear him speak. That park, by the way, is now named Raùl H. Castro Park. During the address, Hunt pointed toward Castro and said, “In this great state of ours, anyone can be governor, even one of these barefooted little Mexican kids.” When Castro graduated from high school, school administrators discouraged him from going to college. But he received a football scholarship to Arizona State Teachers College in Flagstaff, now Northern Arizona University. Castro, who weighed 140 pounds, dropped out of football after his sophomore year and became a boxer. He won several academic and athletic awards and graduated in June 1939. Returning to Douglas, Castro was told Mexican Americans could not be hired for teaching jobs. He took the civil service examination and received high scores, but was never called for an interview. For two years Castro hopped freight trains, and rode all over the country, picking produce and winning boxing matches as well. Boxing promoters in New York wanted him to become a professional. He declined. Castro returned to Arizona in 1941 and was hired by the U.S. State Department at the consulate office in Agua Prieta, Sonora, across the border from Douglas. Although he signed up for the draft, Castro was never called up because his State Department job was considered essential. In 1946, Castro applied and was accepted into law school at the University of Arizona. He had little money and no place to live in Tucson. Richard Harvill, who at the time was

Denise Holley, Nogales International

Raùl Castro, Arizona’s only Hispanic governor continues to inspire

Raùl Castro

dean of the graduate college, hired Castro to teach Spanish at the UA. That didn’t go over well with the dean of the law school who objected to Castro having a full-time teaching job while going to school. “The law is a jealous mistress,” he told Castro. But Castro persisted and appealed to UA President Alfred Atkinson, who interceded on his behalf. Castro graduated from law school in 1949. After starting his law practice in Tucson, Castro met and married the former Patricia Norris who had just moved from her native Milwaukee, Wis. The two of them share a love of horses. In 1952, Castro became a deputy attorney and in 1954 ran for Pima County Attorney and won. Four years later he was elected a Superior Court judge. One day Castro was painting a fence at his El Milagro Pony Farm on River Road when he had an encounter with two officers of the Border Patrol. They asked him for his green card. When Castro told them he didn’t have one, the officers started to become rude and surly. That was until he pointed to a sign that read “Judge Castro” at which point they realized who they were talking to and apologized profusely. Castro wrote in his autobiography the

encounter really hurt his feelings but, as it turns out, he would find himself in similar circumstances with border agents, not once but two more times. Meanwhile, in 1965 President Lyndon Johnson appointed Castro to be ambassador to El Salvador. Johnson asked his new ambassador to consider taking his mother’s maiden name, Acosta, so as to avoid any confusion with Cuban dictator Fidel Castro’s brother, also named Raùl. But Castro declined. In 1968, Johnson appointed Castro ambassador to Bolivia, a position he was allowed to keep a year later after Richard Nixon became U.S. president. Nevertheless, Castro decided he wanted to return to Arizona and did so in November 1969. At the urging of Democrats, Castro ran for governor in 1970 against incumbent Republican Jack Williams, who won by a slim margin. Castro ran for governor again in 1974 and won, beating Republican Russ Williams. It was during his time as governor when Castro had his second run-in with border agents. It was in San Diego and ended quickly when a bystander recognized him and greeted him saying, “Governor, how are you?” Castro resigned the governership in 1977 when President Jimmy Carter appointed him to be ambassador to Argentina.

The Castros returned to Phoenix in 1980 where he continue his law practice for 20 years before moving to Nogales, where he practiced international law for another six, until he was 90. At this point, you may be wondering about the governor’s third run-in with border agents. It happened less than three months ago. On his way to his 96th birthday celebration in Tucson on June 12, he was stopped at the Border Patrol checkpoint at Tubac after residual radiation from a medical procedure he had undergone triggered an alarm. On a day when the temperature reached triple digits, Castro was told to get out of the air conditioned car and wait in a tent. In an article in the Nogales International, Anne Doan, who was driving the car, wrote, “I was embarrassed as I watched the governor being needlessly treated like a nuclear threat, especially because they knew he had just had a treatment at Tucson Heart Hospital the day before. I felt he was being disrespected as a senior citizen, much less the amazing statesman that he is.” Through adversity, at age 96, Castro continues to inspire.

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

22 SEPTEMBER 7, 2012



There are some local races that will change your life Politics and business intersect on multiple levels. The policy decisions made by those we elect can determine the quality of your children’s school, the condition of the roads we drive on, the amount we pay in taxes, to the ability to turn on water in the shower or flush the toilet. Government separates great communities with a promising economic future from those that struggle. Intel chooses to bypass its home state California and expand in Chandler. After more than 100 years in Peoria, Ill., Caterpillar leaves for the better business climates of Georgia and North Carolina. With the political conventions the past two weeks, it’s hard to miss the impact of the choice for president between Mitt Romney and Barack Obama. Then there are the races for U.S. Senate, three Congressional races and the state legislative races. They’re almost enough to overshadow the races in Pima County, which could be the most important in terms of how they affect your daily life. • Pima County Supervisor District 1: Ally Miller, a Republican, versus Nancy Young Wright, a Democrat. Miller won a hard-fought primary beating three candidates, all of whom were probably better known when the campaign started. With Miller you’ve got someone who won’t won’tt back down and will work stop, won

toward transparency and a pro-business platform. Young Wright garnered fame during her tenure on the Amphitheater school board and as an advocate for JOE HIGGINS the pygmy owl, which delayed construction of the district’s Ironwood Ridge High School, costing the district hundreds of thousands of dollars. The delays and mitigation also resulted in about $20,000 added to the cost of each CHRIS DeSIMONE new home built in the district. • Pima County Supervisor District 3: Tanner Bell, Republican, versus, Sharon Bronson, Democrat. Bronson is asking voters another four years, for a total of 20 as part of the majority of the Board of Supervisors that has left the region short on jobs, bogged down in costly broken roads and bog

legal fights with other political jurisdictions and anybody else who dares step out of line. Bronson narrowly beat Republican Barney Brenner four years ago. Now with Bell, a young energetic former University of Arizona athlete, this seat is ripe for a change that could change the majority on the Board of Supervisors and the direction Pima County takes going forward. • Pima County Supervisor District 5: Richard Elías, Democrat, versus Fernando Gonzales, Republican. Gonzales is the real deal — a small business owner with 60 employees, who makes a payroll, volunteers with his church and has deep roots in the community. Elías is a disciple of the Raúl Grijalva regime, being appointed to the seat when Grijalva left to run for Congress. Even though this district is heavily weighted Democratic, there’s trouble in paradise as was shown when the United Steelworkers Local 937 showed up to protest Grijalva’s opposition to the Rosemont Copper mine. Democrats want to be successful and have jobs, too. • Pima County Sheriff : Clarence Dupnik, Democrat, and Mark Napier, Republican. In the time since Dupnik first became sheriff in 1980, Pima County has doubled in population. The Pima County Sheriff ’s Office operates on a budget of about $125 million putting out one officer

per 1,000 residents. The Tucson Police Department’s ratio is 2.1 per 1,000. That begs the question, are we safe? Those of us who pay way too much attention to local politics also remember that in 2009 Dupnik found himself in hot water when he suggested illegal immigration could be deterred and the border secured if schools were required to check citizenship status when students enroll. He said problems such as failing schools, high dropout rates and gang affiliation are caused by illegal immigration. Napier, who has executive management experience and been a beat cop, won his five-way primary race with a whopping 40 percent of the vote. He’s the guy who can set some new direction when it comes to public safety. There is a reason this is one of the best slates of candidates to challenge the status quo in a long time. The choice is between allowing Pima County to continue to stagnate in economic purgatory or to make changes to create economic vitality and make all of our lives better.

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

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