Inside Tucson Business 09/28/2012 by Territorial Newspapers

DIRT ALERT 2 Falling supply of finished lots will create ‘pocket’ shortages when construction recovers PAGE 4

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • SEPTEMBER 28, 2012 • VOL. 22, NO. 17 • $1

American flight delays subside on word of talks

Airports courting more local tastes Terminal concessions want more food with local connections Page 16

Inside Tucson Business

More positive performances Housing in all submarkets score higher metrics Page 23

Restaurant, bar revival taking shape in Tucson’s urban core PAGE 3

After cancelling 436 flights — including six to and from Tucson International Airport — and delaying 5,788 others — including 22 of 57 others through Tucson — American Airlines and the Allied Pilots Association (APA) this week made plans to resume talks toward a new labor agreement. The cancellations and delays had mounted since Sept. 20 after a bankruptcy judge earlier in the month agreed to allow American to void its labor agreement and impose deep new concessions on pilots. That came after 61 percent of pilots somewhat surprisingly voted to reject an agreement the airline and the APA had reached over the summer. The showdown intensified as pilots started requesting more aircraft maintenance checks. American said the number of such requests had more than quadrupled since July. As the backlog mounted, American’s schedulers sought to stay ahead of the situation by pre-emptively cancelling some flights but as September wore on, the airline found it increasingly difficult to maintain the schedule. As the month end approached the airline also faced the situation of pilots using up their government-mandated allowable monthly flight hours. In Tucson, the most severe days were from Sept. 21 through Tuesday this week when the six flights were cancelled. The delayed flights were anywhere from 16 minutes late to one going to Chicago on Sunday that was nearly six hours behind schedule, according to data from Flightstats.com. Numerous flights were four hours or more late, including one on Monday that was due in from Dallas-Fort Worth at 10:45 p.m. but instead arrived at 3 a.m. Tuesday. The delays affected only flights Ammerican operates using MD-80s and Boeing 737s, which from Tucson are to Dallas-Fort Worth and Chicago O’Hare. American Eagle flights to and from Los Angeles were not impacted by the pilots’ actions. Wednesday this week, American said it anticipated operating more flights as scheduled, though it was still planning to cancel one flight to and from Dallas-Fort on Thursday. American is the second busiest airline at Tucson International, carrying 23.4 percent of the airport’s passengers this year.

2 SEPTEMBER 28, 2012

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

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

INSIDE TUCSON BUSINESS

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

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

NEWS

Downtown restaurant revival pours more than $12.4M into economy By Patrick McNamara Inside Tucson Business

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

BIZ FACTS INVESTMENTS IN DOWNTOWN TUCSON 2008-2013

Total public investments $589 million Construction jobs created 7,544 Samantha Sais

Behind the tractors and front-end loaders with workers laying tracks along Congress Street for the SunLink, the modern streetcar project, there’s a quieter but steady revitalization of the downtown restaurant and bar scene. Since 2008, nearly 50 new restaurants, cafes and bars have opened or expanded downtown, pouring more than $12.4 million in private investment into the area. “There’s never been this large an influx of new business in this short of a time in downtown Tucson,” said Michael Keith, CEO of the Downtown Tucson Partnership. The organization has just completed a survey that tracks the amount of public and private investment made in downtown Tucson. Taken together, the private and public investment in the past five years totals nearly $800 million. “It’s staggering, absolutely no one could have predicted this level of investment, especially given the global financial situation,” Keith said. Numerically, the Downtown Tucson Partnership study shows restaurants and bars have been the most common new businesses since 2008. In terms of money invested, multi-family housing developers have spent the most, putting more than $90.9 million into six different projects. Major investments also have been made in office buildings, with $81.1 million spent on new projects and improvements to existing buildings. An early convert to downtown was Kade Mislinski, who in less than two years has opened The Hub, 266 E. Congress St., The Playground, 278 E. Congress St., and the forthcoming Lulu’s Shake Shoppe, which will be located between the two.

Elliott’s on Congress opened in May. It’ among the many bars and restaurants in the resurgent downtown food scene.

“Before we came here, everyone was like, ‘you guys are nuts,’” Mislinski said. “We believe in downtown.” His investment in the three locations has topped $2 million and the restaurants employ 112 people. For him, opening a bar and restaurant downtown was only natural. He had spent years promoting concerts and raves and DJing events at clubs and warehouses around downtown and another decade with Fox Restaurant Concepts. “What was happening downtown was fun when we were kids and it’s becoming fun and useful again,” he said. Fun is what Mislinski says he’s all about, and it shows in the toy-themed Playground and house-made ice cream at the Hub. Elliott’s on Congress, 135. E. Congress St., is another newcomer to downtown.

see RESTAURANT Page 6

Total private investments $208.6 million Restaurants/bars: 48 Office: 23 Retail: 38 Entertainment: 4 Multi-family housing: 6 Residential: 21 Hotel: 1 Total project by sector: 141

Private investment by sector Restaurants/bars $12.4 million Office: $81.1 million Retail: $11 million Entertainment: $4.9 million Multi-family housing: $90.9 million Residential: $8.2 million Hotel: $25,000

Jobs created or relocated Construction: 2,912 Relocated: 720 Created: 906 Source: Downtown Tucson Partnership

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

LIST COORDINATOR JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

STAFF RESEARCHER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAVID MENDEZ dmendez@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

Inside Tucson Business (ISSN: 1069-5184) is published weekly, 53 times a year, every Monday, for $1 per copy, $50 one year, $85 two years in Pima County; $6 per copy, $52.50 one year, $87.50 two years outside Pima County, by Territorial Newspapers, located at 3280 E. Hemisphere Loop, Suite 180, Tucson, Arizona 85706-5027. (Mailing address: P.O. Box 27087, Tucson, Arizona 85726-7087, telephone: (520) 294-1200.) ©2009 Territorial Newspapers Reproduction or use, without written permission of publisher or editor, for editorial or graphic content prohibited. POSTMASTER: Send address changes to: Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087.

Tucson’s unemployment rate drops to 7.6% in August Tucson’s unemployment rate improved in August to 7.6 percent, from 7.7 percent in July and down from 8.6 percent in August 2011, according to the state’s Office of Employment and Population Statistics. Significantly, both the number of people working and the number of people in the available workforce were up, 1.7 percent and 1.5 percent, respectively, compared to July. That’s something of a reversal from previous months’ trends. Compared to a year ago, the numbers in both cases are down. This year in August, 419,800 Tucsonans were working, which is up from 412,800 in July but down from 422,400 in August 2011. Tucson’s total civilian labor force in August was 454,200, up from 447,300 in July but down from 462,400 in August 2011. Arizona’s statewide unemployment rate remained unchanged at 8.3 percent in August but down from 9.5 percent a year ago. The statewide unemployment rate is seasonally adjusted but the Tucson rate is not, which means month-tomonth comparisons are not as indicative locally as year-to-year comparisons. With the start of the school year, it’s typical for Arizona to add jobs in August. State officials said the number of government jobs added this August exceeded the average of the past 10 years while the number of private sector jobs was below average.

Rathbun Realty files bankruptcy, closes Rathbun Realty Inc., which earlier this month was told by the Arizona Department of Real Estate to cease and desist doing business, has now filed for Chapter 7 liquidation. The bankruptcy filing essentially means Rathbun is out of the real estate and property management business, according to a man who answered the phone at the company Wednesday. Attorney Alan Solot did not return a phone call as of press time. In the filing, Rathbun said it had estimated liabilities of more than $1 million to $10 million but had not yet filed a schedule of creditors. The company said its assets amounted to $50,000 or less. The cease and desist order which suspended the licenses of Rathbun’s two brokers was issued Sept. 4 over $1.8 million that was missing in trust accounts. Three days after the order, Rathbun said it had signed an interim broker in an effort to continue operating. Rathbun Realty’s office is at 5650 E. 22nd St.

EDITION INDEX Public Notices 6 Lists 9-12 Profile 13 Meals and Entertainment 15 Arts and Culture 15 Briefs 18-20 People in Action 19

Inside Media Calendar Finance Real Estate & Construction Biz Buzz Editorial Classifieds

20 21 22 23 24 24 27

4 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

NEWS The University of Arizona wants to look into the possibility of launching a veterinary program. An item that would allocate $3 million for feasibility study was on the Arizona Board of Regents meeting agenda for Thursday. Arizona currently does not have a veterinary school and pays to send residents to programs outside the state. In this current school year, 47 students are participating in a veterinary medicine program through the Western Interstate Commission for Higher Education Professional Student Exchange Program, where the state provides a $30,000 support fee per student, according to the Arizona Board of Regents. This totals state support of $1.4 million for the 2012-13 academic year. The UA already has a veterinary diagnostic lab, multiple laboratory animal research facilities, a product and safety laboratory with two working ranches, research farms, and does microbiological research, according Dr. Shane Burgess, vice provost and dean of UA’s College of Agriculture and Life Sciences. And, the facilities are already connected with the UA’s schools of public health, medicine and pharmacy and a faculty with animal and biomedical expertise. The Arizona Board of Regents was meeting Thursday and today in Flagstaff.

Official: UA enrollment tops 40,000 for 1st time It’s now official, after teetering near the 40,000-student mark for a few years, student enrollment at the University of Arizona has for the first time topped that, with 40,223 students this year. That’s up from 39,236 students last year. Also, the UA’s efforts to have students stay beyond their first year appears to be paying off with a first-year retention rate of 80.2 percent, up from 77.2 percent a year ago. The freshman retention rate for residents grew to 82.7 percent from 80.1 percent and for non-residents, it was 75.9 percent, up from 71.9 percent. In making the announcement, Melissa Vito, vice president for student affairs, credited the UA’s targeted efforts for the improvement in student retention. One program specifically cited by Vito is called Think Tank, which was visited by nearly 7,500 students about 45,000 times last year. “Over 70 percent of these students are freshmen and sophomores, and early data shows that students who use these services do better than those who don’t. Our least academically prepared students who use Think Tank services returned at a 21 percent higher rate than students who did not use these services,” Vito said. The newly released data also noted the UA’s four-year graduation rate in 2011 was 39.9 percent, up from 36.3 percent in 2010, and the sixyear graduation rate was 61.4 percent, up from 59.8 percent.

DIRT ALERT PART 2

Will builders face a possible 15,000-lot shortage? By Roger Yohem Inside Tucson Business Conclusion of two parts Start the countdown. When will all of the finished lots be gone? In December 2009, D.R. Horton Homes bought 203 lots in Marana’s Continental Reserve. By mid-2010, Richmond American Homes and Maracay Homes picked up 160 lots off Interstate 10 around Arizona Pavilions. As 2011 closed, Meritage Homes and Miramonte Homes had grabbed more than 210 lots in the hot area called the Tangerine Corridor. In northwest Marana, developers secured 800 acres of dirt. This year, the acquisitions have accelerated. By the end of the year lot sales could triple the volume of 2011. Is now the time to re-stock? It’s a developing situation with no certain answers. What is certain however, are concerns the supply-demand balance is nearing an imbalance. “By 2014, we may not be able to deliver enough finished lots to meet consumer demand for housing,” said Will White, Tucson manager of Land Advisors Organization, 3561 E. Sunrise Drive. “There is a substantial amount of platted lots, but who is going to build those? The owners don’t want to shell out that kind of money.”

Signs of improvement In the past 18 months, there have been clear signs of improvement in the region’s real estate market. Small price gains in used homes are holding. Builders have inched up prices for new homes. Foreclosure notices are higher but expected to fall sharply in 2013. Generally, active listings are settling despite the overhang of shadow inventory. Lots cost more. And the large national builders have sophisticated new business plans based on lessons learned from the Great Recession. “Developers and builders now are smarter than they get credit for. They don’t want to own raw land. Holding land ties up financial assets that aren’t producing any revenue,” said Jim Marian, a principal with Chapman Lindsey Commercial Real Estate. A “just-in-time” strategy of inventory management, based loosely on what transformed the manufacturing industry decades ago, has entered the business. “Like manufacturing, home building is all about production,” Marian said. When builders buy land, that’s “a real obvious good sign” they are going to build again, he added. That means builders who consolidated their Tucson oper-

Otis Blank

UA seeks to consider veterinary program

Over the past 18 months, builders have paid a “decent premium” for lots. Prices are higher, especially in Marana.

ations to Phoenix will have to re-staff locally with new construction-related jobs. Over the last two years, White estimates builders have bought $30 million to $40 million in dirt in and around the Tangerine Corridor in Marana. From Rancho Vistoso Boulevard west to Dove Mountain Boulevard, this area contains most of the prime “A” lots in good locations. “Not one other area of Pima County can make that claim,” White said. Meritage Homes has been the most aggressive buyer along the corridor, having picked up several hundred lots in the communities of SkyRanch, Tangerine Crossing, Dove Mountain, and Rancho Vistoso (see chart). Typically, those lots were abandoned by other builders/investors and/or foreclosed during the recession.

Higher land prices Rising from the housing collapse, national builders are emerging as the major players. They are now cash rich with aggressive business plans. That has enabled them to control about 90 percent of recent land transactions, said White. Before the crash, KB Home and Lennar “often traded places as the biggest builder in town. But now, DR Horton is setting themselves way apart,” White said. Horton has been an early and steady land buyer and “could be a 30 or 40 percent market share

builder here.” As Horton, Meritage, Richmond American and others put their plans into action, they paid a “decent premium” for land, added White. “Prices are up. Land is the foundation of their business plan.” In August, 150 new home sales closed region wide, the highest since June 2010, said Ginger Kneup of Bright Future Real Estate Research. “There are good signs this pace will continue in the final months of the year. The best indication is that the number of permits pulled in May through August exceeded the same 2011 period by 53 percent,” she said. “Builders are reporting good sales and advertising few specs, so the market is wellpositioned to exceed 2011, likely by 200 to 250 units.”

Back to the core Near the peak of the 2005-2006 housing frenzy, developers searched the outskirts of the metroplitan area for dirt. Along the I-10 corridor, Pulte leapfrogged Marana to Red Rock. Speculators eyed tracts to the west along Ajo Highway almost to Three Points. Others saw Sahuarita growing south along I-19 to the Santa Cruz County line. Even Benson and Whetstone to the southeast made it onto the radar screen. “The drive ‘til you qualify option was hot but now there is no incentive to go out that far. The economy killed that. All it took was

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

NEWS This Week’s

falling home prices in Tucson to move development activity back into the core metro area,” White explained. That swung the spotlight back to northwest Marana, an area abundant in “laser-leveled farm land.” In addition to the Tangerine Corridor, builders will return to communities with existing entitlements for over 6,500 lots along I-10 like Gladden Farms, Sanders Grove and Saguaro Bloom. Gladden Farms has 1,900 finished, platted and zoned lots. Sanders Grove has 2,500 planned lots and Saguaro Bloom holds 2,200 partial, platted and zoned lots. “Once the economy turns, this will be the fastest growing area,” White said. “Home prices are back to reasonable back in the core.” As the Tangerine Corridor and the northwest area build out, builders will be drawn to other currently calm submarkets. Those areas are Sahuarita, the Houghton Road Corridor and Vail, said Pete Herder, CEO of the Herder Companies. Since 2005, White estimates some 34,000 finished lots have been absorbed “during the worst economic times.” Currently, there are about 4,000 finished lots available to the market. Based on new home permits projections of about 2,000 this year and 2,200 next year, “we’re at 4,200 and out of lots by the end of 2013. Permits could be 2,500 to 3,000 in 2014, a worst-case scenario caused by a horrific market crash that nobody prepared for is coming back.” The shortage of finished lots could approach 15,000 by 2017-2018. That is “a daunting task because only paper lots will be left,” said White. “So the big issue becomes who builds them?” Several thousand planned “paper lots” exist in the region. But due to ongoing economic and tax uncertainty, “many owners will not put out the money or time to develop their lots,” Herder emphasized. “From scratch, raw land can take 12 to 18 months to do finished lots. I see the builders taking on that role more.”

Curtain goes up On Monday (Oct. 1) the Westin La Paloma Resort and Spa, 3800 E. Sunrise Drive, will unveil its first block of 24 renovated rooms that will be ready for guest occupancy. It represents a milestone in the resort’s $30 million makeover under new ownership after emerging from bankruptcy. So now it’s 24 down, 363 rooms to go restoring the luster to one of Tucson’s resort jewels.

The Tucson

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

Shortage of lots

Good News

The Tangerine Corridor has the most prime “A” lots, says Will White of Land Advisors.

In two subdivisions, Herder has held about 120 finished lots for three years. His son John will develop some of those and the balance likely will be sold in bulk to builders. Whether the shortage reaches a crisis is unclear. There are too many variables in play. “It all comes down to consumer confidence and that will be determined by jobs and land location. Until jobs come back to Tucson, strong housing demand will not come back,” Herder said. Although the shortage of lots is a serious issue, neither Herder nor Marian sees it escalating into a major crisis. As absorption shifts to paper lots, development will still driven by economics. “It’s a risk-reward situation. If the risks are way off the chart, land owners are not going to put money into improving their lots. Most would rather have the builders do it. But if the opportunity, the reward is there to make a profit, they’ll do it themselves,” Mar-

ian said. “Builders will go where the economics of a deal work, including infill,” he added. “There will be very tight pocket shortages of lots in certain areas, but not a severe shortage market-wide.” Over the next five years, annual volumes of about 4,000 new home permits would be a welcome, healthy and manageable “sweet spot,” said White. To meet demand, “builders will have to build their own lots again.” Looking ahead 10 to 15 years, a projected population growth of 500,000 people will pressure Arizona to release state trust land. The state owns about 1 million acres in the Tucson region. “That will be the next big challenge,” said White. “The search for new land is a very tough task.”

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

Tangerine Corridor/Northwest Marana dominate land sales Date 9/2012 8/2012 8/2012 6/2012 6/2012 5/2012 5/2012 4/2012 1/2012 5/2011 1/2011 9/2010 6/2010 5/2010 12/2009

Buyer

Submarket/General Location

Sales Price

Acres

Lots/Type

Price/lot

Richmond American True Life Communities Meritage Homes Meritage Homes D.R. Horton Homes D.R. Horton Homes Meritage Homes Lennar D.R. Horton Homes Meritage Homes Miramonte Homes Pulte Homes Richmond American Maracay Homes D.R. Horton Homes

Marana: Tangerine/Dove Mountain Oro Valley: Tangerine/Rancho Vistoso Marana: Tangerine/Dove Mountain Oro Valley: Rancho Vistoso/Moore Marana: The Pines Marana: Camino de Manana/Oasis Marana: Tangerine (Sky Ranch) Marana: Tangerine/Dove Mountain SW: Rancho Sahuarita Marana: Tangerine (Sky Ranch) Oro Valley: Tangerine/Dove Mountain Oro Valley: Tangerine/Dove Mountain Marana: I-10/Arizona Pavilions Marana: I-10/Arizona Pavilions Marana: Continental Reserve

$3.4 million $10 million $2 million $7.2 million $2.35 million $3.5 million $1.59 million $1.96 million $4.39 million $2.23 million $3.9 million $2.66 million $2.58 million $2.88 million $5.8 million

9 168 99.7 50.9 7.7 12 17.6 5.8 37.2 6.6 20.8 8 7 7.8 112.7

63 finished Raw land 61 platted 128 finished 56 finished 83 finished 53 platted 29 finished 88 finished 32 finished 130 finished 38 finished 43 finished 60 finished 203 finished

$54,000 N/A $33,242 $56,250 $42,000 $42,000 $30,000 $69,500 $51,000 $69,687 $30,276 $70,000 $60,000 $48,000 $28,571

Land Advisors Organization data

On the F-35 As the Air Force continues to evaluate sites for future basing of training facilities for the F-35 Joint Strike Fighter, it could be nearing crunch time. The Air Force has already identified Hill Air Force Base near Ogden, Utah, as a preferred site. That doesn’t make it a done deal but it gives them a leg up while Tucsonans are still trying to make the case for the Air National Guard’s 162nd Fighter Wing at Tucson International Airport. What could be a wild card, is what Tucson Mayor Jonathan Rothschild says after he takes an upcoming trip to Lockheed Martin to hear first-hand what the fighter jet sounds like. Rothschild says he doesn’t want others to accompany him on the trip, presumably so as not to try to unduly interfere with what he hears.

Fighting Padres move Even though the El Paso business group MountainStar Sports this week signed an agreement to buy the Triple A Tucson Padres, there are some who are still trying to fight it. Some of the loudest are coming from El Paso where voters aren’t being given a say in the city’s plans to spend $50 million to build a ballpark downtown because the city plans to do it through certificates of participation, a type of bonding mechanism that doesn’t require voter approval. Separately, meanwhile, the El Paso City Council is asking voters in November to approve a $462 million bond sale for quality-oflife improvements for parks and recreation facilities, open space, libraries, museums, the zoo, neighborhood improvements, and cultural and performing arts facilities. Voters also will vote whether to impose a 2 percent hotel room occupancy tax, which could raise revenues to help pay for the ballpark but city officials say the planning for that was always a separate issue and those revenues aren’t needed to build the ballpark. Under MountainStar’s ownership, the Tucson Padres will play their final season in 2013 at Kino Memorial Stadium before moving to El Paso in 2014.

6 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES Chapter 7 - Liquidation Rathbun Realty Inc., 5650 E. 22nd St. Principal: Bette Glover, president. Estimated assets: $50,000 or less. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Schedule not filed. Case No. 12-20996 filed Sept. 21. Law firm: Tilton & Solot

Chapter 11 Business reorganization John Wesley Dorris III, 7635 E. Ocotillo Overlook Drive. Principal: John Wesley Dorris III, debtor. Estimated assets: $50,000 or less. Estimated liabilities: More than $100,000 to $500,000. Largest creditor(s): Cadles of Grassy Meadows II LLC, Smoot, W.Va., $88,052.48 and American Express, Malvern, Pa., $70,287.44. Case No. 12-20712 ﬁled Sept. 18. Law ﬁrm: Davis Miles McGuire Gardner, Tempe

Foothills Land LLC 5490 N. Falcon Crest Place 85749 Tax parcel: 205-30-1150 Original Principal: $300,000.00 Beneficiary: Meryll M. Frost Jr. and Susan C. Frost, Gainesville, Fla. (42%); John H. Valdata (33%) and Francis Henry Champagne as trustee for the Francis Henry Champagne Revocable Trust (25%) Auction time and date: 10 a.m. Dec. 12, 2012 Trustee: Albert H. Hartwell Jr., 1177 N. Church Ave., Suite 703 Artistic Glass & Mirror Company Inc. 2029 E. 14th St. 85719 Tax parcel: 129-04-2720 Original Principal: $612,000.00 Beneficiary: California Bank & Trust, Sacramento, Calif. Auction time and date: 11:30 a.m. Dec. 14, 2012 Trustee: Fidelity National Title Insurance Company, 11000 Olson Drive, Suite 101, Rancho Cordova, Calif. Euclid N.T. Partnership LLC 17121 W. Tiro Road, Marana 85653 Tax parcel: 208-19-210R Original Principal: $15,000.00 Beneficiary: Katherine Rutherford Auction time and date: 11 a.m. Dec. 20, 2012 Trustee: Timothy Ingraham, PO Box 36825, 85740 Phone: (520) 529-6740 Fidelity National Title Insurance Company, 11000 Olson Drive, Suite 101, Rancho Cordova, Calif.

LIENS Federal tax liens Arizona Laminate Fabricators Inc., 8020 N. Business Park Drive, Marana. Amount owed: $24,439.11. Frankie’s South Philly Cheesesteaks & Hoagies and Frank Santos, 2574 N. Campbell Ave. Amount owed: $8,201.16. Hacienda Custom Builders Inc., 9760 S. Camino De La Calinda, Vail. Amounts owed: $7,673.79 and $171,346.45. Arizona Lending Group Inc. and Robert L. Schmidt, PO Box 32830, 85751. Amount owed: $83,184.93. Strategic Retirement Plan Dynamics Inc., 1010 N. Finance Center Drive, Suite 106. Amount owed: $67,117.75. Renaissance Renovating LLC and Timothy J. Duvall, 3421 W. Eunice Place. Amount owed: $3,710.61. Redhair Law Group PC, 7440 N. Oracle Road, Building 3. Amount owed: $21,373.71. Express Tune-Up & Lube and S&H Enterprises Inc., 777 E. 22nd St. Amount owed: $8,044.38. Law Ofﬁce Laurence M. Berlin and Laurence M. Berlin, 4525 E. Skyline Drive, Suite 111. Amount owed: $5,995.71. Daniel J. Rylander PC, 4340 N. Campbell Ave., Suite 266. Amount owed: $33,911.97. Wade Law Firm and Gladys S. Wade, 100 N. Stone Ave., Suite 502. Amount owed: $8,968.43. Seawater Foundation, 4230 E. Whittier St. Amount owed: $35,302.72. Product Development Industries Inc., 4500 E. Speedway, Suite 50. Amount owed: $1,703.56. JJ’s Smoke Shop and Jason Geiser, 5846 E. Speedway. Amount owed: $5,691.03. Fund-Net Corp., 2100 N. Wilmot Road, Suite 218. Amounts owed: $233,327.94 and $195,594.65.

Samantha Sais

FORECLOSURE NOTICES

Sparkroot, a coffee shop and café, is one of the nearly 50 restaurants and bars to open downtown in recent years.

RESTAURANT continued from Page 3 Billy Elliott and wife Valaree opened the bar and restaurant in May hoping to tap into the area’s new energy. “It seems like there’s a lot of new stuff going on and we wanted to be a part of it,” Billy Elliott said. In addition, he wanted Elliott’s to offer something slightly out of the ordinary. The menu includes duck, which they use in numerous applications and whimsical desserts like chocolate-covered bacon and deep-fried peanut butter-and-jelly sandwiches. “I don’t want our menu to look like Friday’s,” he said. Elliott’s on Congress also offers a selection of house-infused vodkas and cocktails that riff on the theme. Myles Stone, co-owner of Borderlands Brewing Company, 119 E. Toole Ave., said he and his partners sought a downtown location because they liked the burgeoning urban environment and the connection to history. “We just loved the personality and the history,” Stone said. “It’s got so much more soul.” He and his partners started the downtown brewery on a paltry $2,000. They’ve since attracted more than $200,000 in investment and anticipate reaching the $500,000 threshold by year’s end. Despite the shoestring budget, demand for their beer has swelled, Stone said. “We’ve been under capacity since the minute we opened,” he said. A handful of Tucson bars and restaurants has Borderlands’ beer on tap. Stone said demand has grown to where

Borderlands has already ordered new brewing equipment to increase capacity ten fold. Keith said the influx of private investment projects in downtown has followed on the heels of public infrastructure improvements. “The level of public investment that had gone in already has set the table for the restaurant industry,” Keith said. He notes projects such as the SunLinks modern streetcar, the Fourth Avenue underpass, Plaza Centro Garage and even a nearly $40 million infrastructure investment using funds from the much-criticized Rio Nuevo Multipurpose Facilities District all have played a role in preparing downtown for private development. “All of that has set the stage for small investors to go downtown,” he said. That public investment downtown seemed long overdue, as what once was the heart of the city fell into a state of decline due to suburban growth. Downtown’s proximity on the west side of where much of the population lived, also hurt. By the end of the 1970s the exodus was complete. Excepting a few venerable retail mainstains and private offices, government workers, attorneys and the homeless seemed to be what remained downtown. Several attempts by government over the decades to revive downtown fell flat. But now downtown Tucson appears to be in the midst of a true urban revival. Tucson Electric Power and its parent company UNS Energy Corp. last November moved into its new $64 million, nine-story headquarters building at 88 E. Broadway. A

year earlier, Providence Service Corporation relocated its national headquarters to 64 E. Broadway downtown, investing millions to rennovate a building that was originally constructed in 1909. Blocks of student housing have begun a vertical assent as well, and the $200 million SunLink modern streetcar project continues to wind its way through downtown. “All of these things are beginning to create a sense of place,” Keith said. In addition to the nearly 50 new bars and eateries opening downtown over the past five years, Keith said at least 10 more are on their way. Thunder Canyon Brewery, a long-time fixture in Foothills Mall, plans to move into the Brewery Block at 220 E. Broadway. Further west on Broadway, next to the Providence Service’s headquarters at Scott Avenue, a new bar is poised to open. Renovation activity is underway at the now-closed Vaudeville Cabaret site at 110 E. Congress St. Two restaurants and a bar have pending liquor license applications for spaces in the Rialto Block on Congress. The thing all these places have in common, Keith said, is local ownership. That, according to him, is the key to keeping downtown Tucson a unique and growing location, free from the homogeneity of chain restaurants. “Tucson can be very good at being itself,” Keith said, “but being itself very well.”

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

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

GOOD BUSINESS HR IN THE WORKPLACE

Deferred deportation process raises new legal issues for employers Editor’s note: Normally, this monthly column has been dealing with issues surrounding social media in the workplace, but is switching topics this month to deal with the potential legal challenges facing employers under the federal government’s “Deferred Action” program for previously undocumented people. Employers are facing a new set of hiring issues now that previously undocumented individuals are now eligible for Employment Authorization Documents (EAD) through the federal government’s “Deferred Action for Childhood Arrivals” process, which puts deportation on hold for two years while allowing a legal work permit. The process is designed for young people, often brought to the United States from other countries by their parents and who are considered to be low priority by U.S. immigration enforcement officials. To qualify for the deferred action process, applicants must meet these criteria: 1. Under the age of 31 as of June 15, 2012. 2. Come to the U.S. before reaching his or her 16th birthday. 3. Continuously resided in the U.S. from June 15, 2007, to the present. 4. Was physically present in the U.S. on June 15, 2012. 5. Entered “without inspection,” meaning not through a U.S. Port of Entry, before June 15, 2012, or his or her lawful immigration status expired as of June 15, 2012. 6. Is currently in school, has graduated or obtained a certificate of completion from high school, has obtained a general education development (GED) certificate, or is an honorably discharged veteran of the Coast Guard or Armed Forces of the

United States. 7. Has not been convicted of a felony, significant misdemeanor, three or more other misdemeanors, and does not otherwise pose a threat to national JARED LEUNG security or public safety. Deferred action job applicants raise distinct issues for employers: • A new applicant may apply for a position with an EAD from the deferred action process. Whether the individual does or does not have “lawful” or “legal” status is an open question. Nonetheless, with a properly issued EAD from U.S. Citizenship and Immigration Services, he or she is authorized to seek and accept employment. • A current employee may come forward with a new EAD from the deferred action process, which may contain information inconsistent with documents provided to the employer during the original I-9 process. By virtue of the requirements of the deferred action process, the employee may not have had lawful status in the U.S. when initially hired, which suggests he or she may not have provided a genuine document when initially completing the I-9 process. In the first scenario, the EAD issued under the deferred action process is an acceptable “List A” document for the Form I-9. As a result, the employment process can proceed. The employer must treat that person similarly to other work authorized applicants. The key question for the employer to ask is, whether the applicant can provide a valid List A document or a List B and List C

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document to demonstrate work authorization on the Form I-9. The immigration “status” of the individual is not relevant. The second scenario is more JOHN BALITIS complicated. Although an employee presenting a work permit obtained through the deferred action process currently has work authorization, the employee may have misrepresented himself or herself when completing the initial I-9. The deferred action process applicant may now have a new social security number. Clearly, the individual now has work authorization, and cannot be terminated on that basis alone. The employer must take into account its policies toward employees who have falsified information on the job application or were otherwise less than truthful to the company. The employer must consider these questions: • What is the company’s written policy, if any? • Did the company include this subject during orientation or in any materials provided at the start of the employment? • Is there any flexibility in the written policy or documents to allow the company to enforce its policy on a case-by-case discretionary basis? • What has been the company’s actual practice? If there has been no policy concerning employees who have provided falsified information or an inconsistent practice in the past, it would be wise to establish a policy for false statements to the employer.

In addition to immigration-related issues, such a policy will allow employers to resolve misrepresentations in other areas such as prior criminal convictions, exaggeration on résumés, etc. NANCY-JO MERRITT A transparent policy on these issues is clearly a best practice. And, if the employer wants to create flexibility in how it handles these situations, a provision for “notice and cure” should be considered, so employees may be given a chance to correct prior misrepresentations and save the company from having to terminate an otherwise valuable employee, at the employer’s discretion. In creating a new policy or modifying an existing one, employers should retain the ability to exercise judgment on a case-bycase basis. Should the employee be terminated and rehired under the new and corrected information? What are the implications? These are questions with complicated answers that should be carefully considered and are beyond the scope of this article. Consult with your immigration and labor/employment attorney to develop such a policy or to fine-tune an existing policy.

The authors are with law firm of Fennemore Craig. Contact Jared Leung, who practices in the area of immigration law, at Jleung@fclaw.com; John Balitis, who practices in the labor and employment area, at Jbalitis@fclaw.com; and Nancy-Jo Merritt, who practices solely in the field of immigration and nationality law, at Nmerritt@fclaw.com.

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8 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

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Tucson sixth-poorest among metro areas By Khara Persad Cronkite News Service WASHINGTON — Tucson tied with two other U.S. metropolitan areas to be as the sixth-poorest in 2011, with a poverty rate of 20.4 percent, according to data from the Census Bureau. That rate, which was well above the national poverty rate of 15.9 percent last year, was attributed to the region’s high unemployment, slow economic growth, low education levels and low-paying jobs. “Obviously it is a statistic we’re not happy about,” said Mike Varney, president and CEO of the Tucson Metro Chamber. He pointed to the region’s unemployment — which has hovered between 8.4 and 9.4 percent over the last three years — as a major factor. “No paychecks and no jobs mean problems in the household,” Varney said. Tucson Mayor Jonathan Rothschild said the numbers were not surprising, but he thinks they are “down a bit” from previous years. He said one problem is the high rate of poverty among children in Pima County, which is included in the Tucson metro area. The sixth-place ranking, tieing with Albuquerque and Toledo, Ohio, was among just over 100 metropolitan areas with populations over 500,000 that were included in the report issued Sept. 17. Marshall Vest, director of the University of Arizona’s Economic and Business Research Center, described Tucson as having very slow economic growth, with a consistently high rate of poverty compared to the rest of the nation. “There is little demand for additional housing, offices, retail space — therefore

construction, and industries related to growth operate at a reduced level,” Vest said Monday. “There is very low employment growth. Employers are cautious.” An official at Tucson Regional Economic Opportunities (TREO) agreed that improvements are coming slowly to the metro area. “Our region is in economic recovery but like many markets, it is not fast enough,” said Laura Shaw, a spokeswoman for the economic development agency. Shaw said the traditional elements of Tucson’s economy are now beginning to recover, and it is critical that the region “not revert to reliance on population growth to drive our economy again.” Vest and others also pointed to the impact of high poverty rates of the Tohono O’odham and Pascua Yaqui reservations in Pima County. In Arizona, 4.5 percent of the population is American Indian and in Pima County they account for 3.2 percent of the population. That 3.2 percent is “a large number compared to other metropolitan areas around the country,” Vest said. “Income levels, unemployment rates and poverty are much higher on reservations, and are significant factors compared to the rest of the country,” he said. Varney said low-income jobs are also a problem for the region. “We have a service-driven, tourist industry where there is an over-abundance of lower paying jobs,” he said. Varney said there are a number of things that can be done to lower the area’s poverty level, but he believes education is most important because it will help capture more high-paying jobs. “Education is the pathway to get 21st cen-

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Rich metro, poor metro

Cronkite News Service U.S. metropolitan areas with the highest poverty rates in 2011: 1. McAllen-Edinburg-Mission, Texas, 37.7% 2. Fresno, Calif., 25.8% 3. El Paso, 24.7% 4. Bakersfield-Delano, Calif., 24.5% 5. Modesto, Calif., 23.8% 6T. Tucson, Albuquerque and Toledo, Ohio, 20.4% 9. New Orleans-Metairie-Kenner, La., 19.5% 10. Lakeland-Winter Haven, Fla. 19.4 Metro areas with lowest poverty rates in 2011: 1. Washington, D.C., 8.3% 2. Bridgeport-Stamford-Norwalk, Conn., 9.4% 3T. Ogden, Utah, and Honolulu, Hawaii, 10.1% 5. Harrisburg-Carlisle, Pa., 10.5% 6. San Jose-Sunnyvale-Santa Clara, Calif., 10.6% 7. Boston-Cambridge-Quincy, Mass., 10.7% 8. Lancaster, Pa., 10.9% 9. Minneapolis-St. Paul-Bloomington, Minn. 11.0% 10. Des Moines, Iowa, 11.1%

tury jobs,” said Varney, adding that education will prepare workers for jobs in science, technology, engineering and mathematics. Shaw and Vest agreed that education, in Vest’s words, is “absolutely the key.” Vest said Tucson will create a lot of jobs in the future — the question is whether or not they will be good jobs. “There’s a lot of growth yet to come and a lot of questions to be answered,” he said.

“You need to have more jobs and a vibrant economy for the poverty rate and the unemployment rate to decline.” In addition to education, Rothschild said it is important to “educate people about what the problem is, and different ways to approach it concretely.” That includes helping improve children’s reading levels, and creating opportunities for them to find jobs and internships.

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

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INSIDE TUCSON BUSINESS

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12 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

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2013

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OF LISTS Space deadline

November 12, 2012 Publication date

January 25, 2013

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

PROFILE

CP Graphics merges printing needs with new market demands By Christy Krueger Inside Tucson Business

Samantha Sais

Young entrepreneur Jake Walker had the vision in 2010 to rescue and revive a longtime Tucson printing company before it could fall into the jaws of recession and changing times. Founded in 1983, City Press had a good track record and a solid reputation. But the printing industry in general was losing ground to electronic communication solutions. The National Association for Printing Leadership (NAPL) reported there are half as many print shops across the country today compared to the 1990s. Walker, 33, had a background in managing change for companies. He saw an opportunity with City Press and put together an investment group to purchase the business. After taking on the role as BIZ FACTS operating partner, he made the decision to CP Graphics Jake Walker, president of CP Graphics stands near a printing press in retain former owners their production area of the building in Tucson. 1635 S. Research Loop Phil and Pam Wilber and change the www.cpgraphics.net company name to CP www.scoreboardwhiz.com Graphics. (520) 722-0707 The new team immediately began working to bring the commercial printer into the age of technology, concentrating on both offset and digital printing, website development, marketing and graphic design. Walker added a handful of employees to help carry out his plan to increase products and services. “We do asset management, working with companies with multiple locations to create logos, videos, print ads and manage web environments,” Walker said. Although he wouldn’t name any specific Jake Walker, president of CPGraphics points to an example of some of their company’s work beclients, approximately 40 percent of CP ing done in their production room. The company is located in Tucson, Ariz. Graphics’ business is from out of town. Many are large, national companies. month, he was part of a panel that spoke on San Diego-based ScoreboardWhiz.com to “A lot are in the finance industry and in post-merger integration during the NAPL Tucson in May of this year and hired local the technology industry,” he added. conference in Washington, D.C. employees to support the division. CP Graphics also handles direct mail, Even before the golf company acquisiThe company creates golf scorecards and which Walker said has changed quite a bit scoreboards for tournaments in the U.S. and tion, CP Graphics began experiencing in recent years. Technology allows for more Europe. Clients include United States Golf tremendous growth in a short time. targeted and individualized direct mail “We had 30 percent growth in 2011 and Association, Ladies Professional Golf Assomarketing. For example, using its own ciation and “a lot of other associations and 65 percent in the first half of 2012,” Walker database, a business can match postcards said. He attributes this not only to having a country clubs,” Walker said. advertising different products to specific range of products, but also to listening to The acquisition is in line with his customers, depending on their interests strategy to expand product offerings, which his customers. and past buying habits. All can be sent out “Last November, we polled our higherin this case could include printed materials in one mailing. volume clients to find out what we’re doing such as fliers and menus. In the traditional printing realm, CP “The pricing model is very attractive to the well and not. A lot of initiatives this year Graphics produces posters, announcecame from those conversations. We’re industry,” Walker noted. Standard practice ments and business cards and has the pro-active,” he said. has been for tournament directors to hire capability for foil stamping and embossing. calligraphers to fill out scoreboards. But Despite many clients being located It has a binding department and prints hundreds of miles away, Walker believes ScoreboardWhiz.com can save money by books and magazines. it’s important to have personal interaction pre-printing scoreboards in calligraphy font. While only two years old, CP Graphics with them. “It makes it quicker and it’s great looking.” has already acquired another company. “We make a point to visit. We need to Walker is fast becoming an expert on Walker purchased and moved the formerly have a face, shake hands. We also do online acquisitions in the printing trade. This

demos and use Skype to meet them. We embrace technology to grow and we do it as efficiently as possible,” he said. He’s never shied away from diving into a new business, even during difficult economic times, because he believes in himself and the possibilities he envisions for the future of the industry. “Some of the greatest accomplishments happen in a downturn,” he said. “We saw (buying the companies) as an opportunity, he said. “Shops were closing because people were not looking for ways to increase value-add to their clients. There’s a demand for what we’re doing and we’re excited about our growth.”

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14 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

GOOD BUSINESS WOMEN IN BUSINESS

Riding a motorcycle can be a lot like running a business

Have you seen this person ?

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Jill Aâ&#x20AC;&#x2122;Hearn, Advertising Director P.O. Box 27087 Tucson, AZ 85726 0S FNBJM UP jahearn@azbiz.com /P QIPOF DBMMT QMFBTF %SVH GSFF XPSLQMBDF &0&

I met my first motorcycle on the day I met my husband. He wasnâ&#x20AC;&#x2122;t my husband at the time nor was it the first motorcycle Iâ&#x20AC;&#x2122;d ever seen, but it was my first experience with a pitch black, chrome-piped, loud Harley Davidson motorcycle. Did I mention loud? I like to say that my husband came as a complete package â&#x20AC;&#x201C; wit, charm, intelligence, humor, good looks â&#x20AC;&#x201C; on a motorcycle. So, I became part of the package as a passenger. After a couple of years, I learned to ride. After another year or so, we rode 7,000 miles cross-country, my first time as a solo rider. A few years ago, I rode completely solo from Arizona to Oregon and back; in part, to prove I could. After almost 10 years of riding solo, Iâ&#x20AC;&#x2122;ve covered more miles by bike than car, and experiencing adventures on the road Iâ&#x20AC;&#x2122;d never imagined. Whatâ&#x20AC;&#x2122;s interesting is how my experiences as a woman who rides a motorcycle have paralleled my experiences as a woman whoâ&#x20AC;&#x2122;s owned a business for more than 10 years now. Each endeavor entails a bit of risk, some adventure, and many learning opportunities along the way. Just as business ownership comes with its own set of unwritten rules, so does riding the road. Itâ&#x20AC;&#x2122;s interesting how many of these are the same. Consider... Bikers: Acknowledge other riders with a wave. Courtesy never goes out of style. Business: Acknowledge your clients. Not only does it tell them youâ&#x20AC;&#x2122;re aware, but you care. Bikers: Stop to help another rider. Someone will always stop to help you. Business: Good deeds paid forward will bring you much in return, whether from clients, staff, colleagues, or business associates. Bikers: When riding as a group, donâ&#x20AC;&#x2122;t ride directly behind the rider in front. The view isnâ&#x20AC;&#x2122;t that great and you canâ&#x20AC;&#x2122;t see the road ahead. Business: As a business owner, your path wonâ&#x20AC;&#x2122;t always be clear. Learn to shift your position for maximum perspective. Bikers: Wherever possible, get out in front, but not at the expense of those behind you. Business: A leader without followers is not a leader. Bikers: Donâ&#x20AC;&#x2122;t back uphill into a parking spot. It doesnâ&#x20AC;&#x2122;t make you look any cooler. Business: Donâ&#x20AC;&#x2122;t re-invent the wheel. Use your time and energy wisely. Bikers: Always put your kickstand down before dismounting. Business: When you do drop the ball â&#x20AC;&#x201D; and you will â&#x20AC;&#x201D; rememberâ&#x20AC;Śkickstand down. Along with the rules of the road, come the lessons learned in business and on the

MARY A. KEYSOR

highway. In my case, some of these lessons have an annoying habit of being repeated regularly. Biker: If your mouth is open, you will eat bugs. Business: If youâ&#x20AC;&#x2122;re doing all of the talking, youâ&#x20AC;&#x2122;re

not listening. Biker: Gentle raindrops feel like biting nails at 70 miles per hour. Business: What may seem trivial to you, may be your clientâ&#x20AC;&#x2122;s greatest concern. Biker: Deer will choose to cross the road in front of you. Business: Some obstacles are unavoidable. Always have a Plan B. Biker: You will forget to put your kickstand down when no one is around to help you pick up the bike. Business: We all experience personal failures. Isnâ&#x20AC;&#x2122;t it more important that you took the risk? Biker: You will manage to unintentionally drop your bike in front of 50 beer-drinking, tattooed, entertainment-seeking bikers. Business: A sense of humor is critical. Biker: If you clean your windshield, it will rain. Business: Otherwise known as Murphyâ&#x20AC;&#x2122;s Law. Biker: The shortest day is the first one, the longest one is the last one. Business: Owning a business is a marathon, not a sprint. Biker: Every ride that ends with you still upright and in one piece is a grand one! Business: Business ownership is a journey filled with milestones. Donâ&#x20AC;&#x2122;t forget to celebrate the daily successes. A final few words for my fellow female compatriots â&#x20AC;&#x201C; business owner, motorcycle rider, rock climber, household commander, teacher, chef - the choice is ours to make. Do what you love and you will love what you do. No, it wonâ&#x20AC;&#x2122;t always be easy. Yes, we will fail on occasion. But when you grab those metaphysical handlebars and point that imaginary wheel in the direction you want to go, you are taking control of your own destiny. And that, my friends, is the greatest lesson to be learned.

Contact Mary A Keysor, principal human resource strategist with ĂŠlan BenefĂŹts, at www. elanbenefits.com or (520) 990-7202. Keysor belongs to the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO), whose members contribute this monthly column.

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Resort or not, Epazote is worth a visit from locals

11 to be inducted into museum as part of musical celebration

On one hand, owner Ashford Hospitality Trust hasn’t exactly made a secret of the fact that it has been trying to find a buyer for the Hilton El Conquistador Golf & Tennis Resort in Oro Valley. On the other hand, it has been busy with renovations like soft changes to the décor in the lobby, the addition of a new 11,000 square-foot state-of-the-art conference center to cater to groups from 10 to 75 and last but not least, the resort has redone its dinner-only restaurant, which opened this month as Epazote Kitchen + Cocktails. The restaurant is named after the Mexican herb Epazote, which has a strong, pungent and earthy flavor and is often used in Mexican and Southwestern cooking. Formerly named La Vista, the restaurant space has been completely renovated for a Southwestern experience that includes locally sourced and sustainable products on its menu. From Arizona grass-fed beef, regionally grown produce, local beers and Arizona wines, diners will find a lot of ingredients that speak to this region. Those influences are evident with unique dishes such as the goat milk mashed potatoes that go along with the smokey beef short ribs. Entrees include the aforementioned beer short ribs, a roast pork tenderloin with a sundried cherry barbeque, Santa Fe chicken enchilada, vegetarian casserole and a big bison burger with red onion jam, bacon, asadero cheese and chile spiced fries. For dessert, while I would have pre-

ferred ice cream over the whipped cream garnish, the Epazaote peach cobbler with an oat crumb topping was everything a post-dinner sweet should be. The décor in MICHAEL LURIA Epazote is clean and contemporary without being Southwest “kitschy,” which may appeal to some tourists but can wear thin for us locals. With the change of seasons bringing in cooler termperatures, my recommendation is to dine on the patio. It’s a great way to enjoy an evening breeze and you can’t beat the up-close and personal views of Pusch Ridge. It may be part of a resort, but Epazote is a great spot for us locals to enjoy a dinner out. Dinner is served daily from 5-10 p.m. and there’s a “social hour” — known elsewhere as a happy hour — served from 4-6 p.m. Sundays through Thursdays. • Epazote Kitchen + Cocktails in the Hilton el Conquistador Golf and Tennis Resort, 10000 N. Oracle Road, Oro Valley — epazotekitchen.com — (520) 544-1705

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

A “Celebration of Music and Culture,” hosted by the Tucson Musicians Museum, will take place from 4-7 p.m. Sunday (Sept. 30) in the Leo Rich Theater at the Tucson Convention Center, 260 S. Church Ave, where 11 Tucson musicians will be inducted this year. This is the sixth annual event honoring Tucson’s amazing musical talent and eventually the museum hopes to honor its inductees in a permanent location, but for now they throw this party once a year. This year’s inductees are jazz musicians Brian Bromberg and David Bromberg, rock musician Bobbie Kimmel, percussionist Black Man Clay, Spanish guitarist Domingo DeGrazia, folk musician Ned Sutton, gospel music leader the Rev. Amos Lewis, violinist David Rife, blues and zydeco musician Sidney George, country music performer Rosemary Koshmider, mariachi guitarist Carlos Bedoya Saldivar. Two people will be inductee, posthumously; drummer Howard Bromberg and guitarist Norman Douglas Sholin. Sunday’s musical celebration will include live music performances, including inductees Brian and David Bromberg, and a silent auction. The Tucson Junior Strings will perform in the lobby before the event. Tickets are $40 each and are available online at www.tucsonmusiciansmuseum.

HERB STRATFORD ship program.

org or at the Chicago Store, 130 E. Congress St. and 5646 E. Speedway, or the 17th Street Market, 840 E. 17th St. Proceeds from the event will go to the Tucson Musicians Museum’s mentor-

Art Davis Dominguez Gallery, 154 E. Sixth St., opens its 37th season with a show titled “Take Five — Interpreting the Landscape,” featuring four artists; Charlotte Bender, Thomas Chapin, Duncan Martin and Phillip Melton along with guest artist Diane Meyer. The show will be up through Nov. 3. Also currently on display at Obsidian Gallery, 410 N. Toole Ave., is a two-person ceramic show with work by Jill Marleah Bell and Barbara Reinhart. It will be up through Oct. 14.

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

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16 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

U.S. airports find there’s money to make going local airlines’ share of airport operating costs has dropped to about 40 percent on average from 70 percent. At Sky Harbor, Kucharz says it’s too early for quantitative data from the change in concessions but she says anecdotally, concessionaires say they are pleased with sales as well as customer feedback. A benefit for travelers that may also be helping boost sales is that all of the new concessions at Sky Harbor are following a “street pricing policy” in which the prices charged at the airport are the same as at the restaurant’s other location in the Phoenix metro area.

By David Hatfield Inside Tucson Business

What’s cookin’ with your travel plans for the holidays?

Non-stop destinations. Connections around the world. Alaska, American, Delta, Southwest, United, US Airways

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

Phoenix Sky Harbor International Airport

By the end of this year, Phoenix Sky Harbor International Airport will finish up half of a two-year project to makeover concessions in its Terminal 4 and it includes a decidedly local bent. McDonald’s, Burger King and Pizza Hut are still there but right next to them, travelers have the option of going to versions of Fox Restaurant Concepts’ Blanco Tacos and Tequila and even Tucson-based Sir Veza’s Taco Garage, among others. Next year, Sky Harbor will add an outlet serving beers from Tempe’s Four Peaks Brewing Company, along with Joe’s Real Barbecue from Gilbert, Los Taquitos Mexican Grill from Ahwatukee Foothills and Matt’s Big Breakfast from Phoenix. And once Terminal 4 is made over, Paula Kucharz, terminal concessions manager at Sky Harbor, says the plan is to continue on into Terminals 2 and 3 as existing contracts expire. The airport, which is operated but not subsidized by the City of Phoenix, decided to split the 10-year concession contracts in Terminal 4 into two bids. The contracts, worth an estimated $650 million in sales, were won by HMS Host, Bethesda, Md., a company that has concession contracts in 100 airports worldwide, and SSP America, based in Leesburg, Va., which operates in about 40 airports in the U.S. and touts its efforts to at getting local brands into its locations. In these days of flight cutbacks and airport security, food and beverage concessions are among the few revenue sources where airports are seeing increases. San Francisco International Airport reports its concession sales excluding rental cars were up 12 percent for the fiscal year ended June 30 to $329.4 million. The airport credits much of the increase to its revamped — and award-winning — concessions reflecting Bay Area culture. Sales in the two terminals where the upgrades have been finished are 22 percent higher than in the other two terminals. Going the other direction this past year was Los Angeles International Airport where concession revenues dropped 5.4 percent to $277.3 million. Food and beverage revenues, alone, were down 11.7 percent. Recognizing its concessions are the source of numerous complaints, Los Angeles World Airports, the division of the city that runs LAX, has set out on an aggressive plan to improve its concessions. Higher revenue from concessions serves another purpose; it helps reduce the costs airlines pay to use airports. Across the U.S.,

Scottsdale-based restaurant company Fox Restaurant Concepts opened Blanco Tacos and Tequila in Phoenix Sky Harbor International Airport.

Tucson’s airport has one local name Inside Tucson Business OTG Management, the Philadelphia-based company holding concession contract at Tucson International Airport, made an attempt to go local when it took over in 2006, opening outlets of Ike’s Coffee and Taco Bron. There are still two Ike’s locations in Tucson but Taco Bron closed its last city location in 2007. The airport location, on Concourse A, is still in operation. OTG’s concession contract comes up for review in 2014.

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

Making connections with good airport food Inside Tucson Business The trend among airports to improve concessions is good for air travelers. With the help of business journals and other news media, Inside Tucson Business checked out what travelers from Tucson can expect in connecting cities. Our criteria were simple. We only checked what’s available within the secure area of the airlines flying non-stop from

Tucson. After all, the last thing anyone wants to do these days is make a needless extra trip through security. The emphasis was on finding something local and good. It should also be noted that in most cases, the airport version of a restaurant is often run by a company that holds a concession contract with the airport, not by the restaurant itself.

ALBUQUERQUE co e of Sunport awarded a mas master contract to an Albuquerque firm 15 years ago and it still holds it to this day. Although there are a couple he food fo offerings are connected to local establishments. Unfortunately, the best restaurant in the airport, ort, a branch ran national brands, most of the of the local chain Los Cuates, is ou outside security. ses th ecu y. To/From Tucson: Southwest uses the A Concourse though both of the airport’s main concourses are interconnected, post-security. ew M king for a cup of Best bites: Tia Juanitas serves New Mexican food, Route 66 Lounge serves its namesake local microbrew and, if you looking rses coffee, Comida Buena serves the locally roas roasted Red Rock. All three are in the connector area between the A and B concourses. ATLANTA ral A In spite of a legal batt battle involving the Federal Aviation Administration eorgia De ation airport considered investigating how the Georgia Deport of Transportation ontra disadvantaged businesses in awarding concession contracts, Hartsfieldme good re ions of local food Jackson International Airport offers some representations with more to come in the next two years. To/From Tucson: Delta uses the A, B, C and D Concour Concoursess an and are interconnected with all concourses via the Plane Train. tauran rant Best bites: One Flew South, on the E Concourse, is an upscale restaurant featuring new takes on Southern fare as well as sushi, and an outlet of Paschal’s Southern Cuisine, an Atlanta institution since 1947, is on the A Concourse. New local restaurants should open on the B Concourse by May 2013. CHICAGO MIDWAY Being Chicago’s second airport may have helped Midway avoid the allcookie cutter approach to food vendors. The city-run Chicago Airport System is in the process of rebidding about a third of Midway’s concession space so there will be some changes next year. To/From Tucson: Southwest uses both the A and B concourses; all concourses are interconnected, post security. Best bites: Manny’s, a cafeteria and delicatessen that’s been in downtown Chicago since 1942, is on the A concourse and Potbelly Sandwich Works, an orhood, old-school sandwich shop that originated in the Lincoln Park neighborhood, is on the B concourse. If you’ve got time to spare, Harry Caray’s Sev Seventh oncourses come c Inning Stretch, in the Food Court near where the concourses together, ving steaks, seafood, as well as is a full-service sit-down restaurant serving burgers and salads. CHICAGO O’HARE Though it’s only beginning to show, the city’s Chicago Airport System is making a concerted effort to get better representation of local establishments at the airport. sed w utt ggoi To/From Tucson: American is in Terminal 3, using gates on the G, H, K and L concours concourses, all of which can be accessed without going through security. Going to other terminals requires exiting the secured area. rill and an Top ed Tortas To near gate ga K3, Best bites: TV food chef Rick Bayless, owner of Frontera Grill Topolobampo in Chicago, has opened Frontera near m molle ry, a Chicago Chic offering versions of the grilled Mexican sandwiches as well ass mo molletes, soups, salads and a guacamole bar. B. B.J.’s Market & Bakery, he K Concourse. Garrett Popcorn, a local chain ain of o flavored popcorns, hass a location catio south side soul food restaurant, is in the Food Court on the ve n at near Gate H2. It’s not Chicago, but if you’ve got time to sp spare, there’s a sit-down Wolfgang Puckk Café – not the usual “express” version etween tthe K an other airports – in the connector area between and L concourses. DALLAS-FORT WORTH (TR The DFW Airport Board is in the midstt of a $2.3 billion renovation project calledd the TTerminal Renewal and Improvement Program (TRIP) op const 01 that is actively seeking local concessionn operators. Terminal A is currently under construction and Terminal B is next, due to finished in 2015. dy ha Terminal D, being the newest, already has some interesting local options. ses Te cts To/From Tucson: American uses Terminals A, B, C and D, all of which are ac accessable via the Skylink automated train service that connects all of the airports terminals, post ssecurity. arbec a Dallas-based Texas-style barbecue ecue chain that’s been around since 1983, has locations near Gate 27 in Best bites: Cousin’s Barbecue, ate 228 in Terminal D, and Lo Bodega Winery ery se Terminal B and near Gate serves wines from Texas near Gate 24 in Terminal D. If you have extra time, ate 333 in Terminal D, is an outlet of Fort Worth Wort restaurant that combines Soutwestern and Creole food with a traditional Reata Grill, near Gate Texas steakhousee for such things as tenderloin tamales. DENVER terna Ever since it opened in 1995, Denver International has made a big deal of trying to show off Colorado and that includes its food concessions. To/From Tucson: United uses the B Conco Concourse and Southwest is on the C Concourse. All three of the airport’s concourses are interconnected by an underground train (make suree you don’t go in beyond Concourse A to avoid leaving the secured area). Best bites: Fort Collins-basedd New Belgium Brewing, maker of Fat Tire, near Gate 80 on the B Concourse serves top-notch bar food with erer, Pour La France, has a location on the B Concourse in the Center Core area near the entrance from the train. its brew. A Denver-based caterer, e, the classiest place in the entire airport may be Lounge 5280 (the Mile High City is 5,280 feet above sea level) is on If you’ve got time to spare, the mezzanine level att the Center Core of the B Concourse and has huge lists of wine and cocktail choises, 10 Colorado-inspired drinks. Food stly ap selections are mostly appetizers and small plates intended to go with drinks. HOUSTON About eight years ago, Bush Intercontinental Airport started a push to upgrade its food concessions, though the emphasis wasn’t necessarily on local; the argument being international travelers are more inclined to patronize names they recognize. To/From Tucson: United (Continental) most often uses gates in Terminal B but its operations extend into Terminals A, C, D and E as well. A

train called TerminaLink connects all terminals, post-security. Best bites: Unless you’re in the mood for a doughnut – the local chain Shipley’s Donuts has a location in the Terminal B Food Court – you better hope your connecting flight requires you to got to another terminal. In Terminal C Urban Cave is a trendy bar and food place and Le Grand Comptoir is a full service restaurant that are both near Gate 29. In Terminal E Pappadeaux Seafood Kitchen is near Gate 2 and celebrity chef Cat Cora’s Kitchen is near Gate 10. LAS VEGAS Let’s face it, in Las Vegas they want you to spend money gambling, not eating food, even at McCarran airport where the “local” phenomenon hasn’t hit. The only truly home grown brand in the airport is chocolate candy maker Ethel M. To/From Tucson: Southwest uses both the B and C concourses, which are interconnected post security. Best bites: With no Vegas names in sight, the best option is an outlet of the Phoenix-based restaurant Blue Burrito Grill, near Gate 25 on the C Concourse. Otherwise one of the few unusual offerings in the airport is a place called Burke in the Box by nationally-known chef David Burke but it’s in the D Concourse, which is tricky to get to from Southwest’s gates, and may be too risky if time is a concern. LOS ANGELES Admitting it was receiving numerous complaints about the embarrassing state of food concessions, Los Angeles World Airports, which oversees Los Angeles International, has put out requests for proposals for new operators. The makeover is still a work in progress and, judging from trips through the airport this month, no effort is being spent on efficiency or training employees. The Encounter Restaurant in the iconic “futuristic” building in the center of the airport is outside security. To/From Tucson: American uses Terminal 4, Southwest uses Terminal 1, and United Express uses Terminal 8, with other United flights extending into Terminals 5, 6 and 7. The United terminals are interconnected post security, the others are not. Best bites: Considering that things are still chaning, this is the best of what’s currently available: In Terminal 4, an outlet of the San Diego-based chain Sammy’s Woodfired Pizza is across from Gate 43. In Terminal 1 a sandwich outlet of the local La Brea Bakery is in the Food Court. And in United’s Terminal 7, there’s another outlet of LaBrea Bakery and a Wolfgang Puck Express across from each other in the Food Court area. MINNEAPOLIS-ST. PAUL The Twin Cities airport has won awards for its concession offerings, including one last year for best new concept, Surdyk’s (see below). To/From Tucson: When it’s offering non-stop flights – they’ve been suspended until Oct. 1 – Delta uses the A, B, C, D, F and G Concourses in Terminal 1, also known as the Lindbergh Terminal. While all of the concourses within the terminal are interconnected post security, the airport’s two terminals are separated. Best bites: Surdyk’s Flights, near the C gates in the Terminal 1 Mall, is an offshoot of a liquor, cheese shop and deli that’s been in downtown Minneapolis since 1934 serving gourmet sandwiches, salads and cheese boards – either grab-and-go or in a sit-down setting; Axel’s Bonfire, in the mall near checkpoint 3, is an outlet of a Minnesota chain serving rotisserie chicken, steaks and fish; and, if you’ve got time there’s Ike’s Food and Cocktails, on the Mall across from checkpoint 1, a retro upscale bar that’s known for its Bloody Mary’s served with a beer back. Coffee made from locally roasted beans is available at Dunn’s Coffee on the C Concourse. PHOENIX Sky Harbor this year launched a makeover of its concessions in Terminal 4 to bring a mix of regional and local brands with the familiar national brands. To/From Tucson: US Airways uses Gates on the A and B Concourses of Terminal 4. And while all of the Concourses in Terminal 4 are accessible post security, a central Food Court is not. Best bites: A couple of Fox Restaurant Concepts, Blanco Tacos and Tequila and Olive and Ivy (which is in Scottsdale) can be found near Gate A5, separated by an outlet of the local Modern Burger; Scottsdale’s Cowboy Ciao, which combines Tex-Mex and Italian, is open near Gate B26. Tucson’s Si Veza’s Taco Garage and an outlet of Cartel Coffee are open near Gate C13 (a Southwest Airlines gate). SALT LAKE CITY Salt Lake City International is wrapping up a makeover of its concessions, though it wasn’t entirely focused on going local. A long-time local gift shop concession was replaced with a national operator. To/From Tucson: Delta uses Concourses B, C and D. All five of the airport’s concourses are interconnected post security. Best bites: In a state known for strict liquor laws, the airport’s shining local effort is Squatters Pub Brewery near Gate 3 on the C Concourse which has a history dating back to just after Prohibition. It’s not local but, Cat Cora’s Kitchen opened this month on the B Concourse. SAN DIEGO For a city that calls itself America’s Finest City, for this endeavor its Lindbergh airport is anything but fine. Food upgrades are promised for next year and it looks as if there’s been at least a token effort to go local. To/From Tucson: Southwest uses Terminal 1 but Gates 1 and 2 have separate security from Gates 3 through 10, which means you may not be able to avoid a trip through security. Best bites: If you’re forced to go through security and you have the time, leave the airport. Island Prime and C Level are less than a quarter mile away, across Harbor Drive. Promising things to come in 2013 include an outlet of the downtown San Diego Banker’s Hill Restaurant and Bar in the center of the area for Southwest’s Gates 3-10 and a pub featuring craft brews from San Diego’s 30th Street near Gates 1 and 2. SAN FRANCISCO City-run San Francisco International has long emphasized local and sustainability and this year won awards for its food offerings in the newly renovated Terminal 2, which reopened last year, and the International Terminal. To/From Tucson: United mostly uses Terminal 3, but a few domestic flights arrive and depart from gates 24-38 in Terminal 1. Checkin, security and baggage claim for all domestic United flights is done at Terminal 3. The airline provides a shuttle to Terminal 1. There is also a connector in the secured area between Terminal 3 and the International Terminal. Otherwise none of the airport’s terminals are interconnected. Best bites: In Terminal 3, the brewer of Anchor Steam has a place near Gate 70 and a small Bay Area chain called Yankee Pier featuring New England-style seafood is near Gate 72. In the International Terminal the top choices are Ebisu Japanese Cuisine and Sushi Bar and the Burger Joint, both in the Food Court. And if you’re among those sent over to Terminal 1, Perry’s, near 42 could make up for the hassle, though it isn’t on the same concourse as United’s gates. Perry’s has dark-wood décor and features old-school food and, in the day, the original downtown location was known as a singles bar. SEATTLE The Port of Seattle has been so eager to go local, it took some heat earlier this year when it quickly approved a contract with local hamburger chain Beecher’s but stalled before ultimately approval a contract with McDonald’s. To/From Tucson: Alaska Airlines’ gates are on the C and D Concourses and in a satellite building connected to them by an automated train system. Best bites: Anthony’s, a Seattle-based fish restaurant chain that dates back to 1969 (different from the Anthony’s in San Diego), is in the Central Terminal and has huge picture-window views of … the airport. Nearby in the Central Terminal, is Dish D’Lish, a soup, sandwich and salad place from a well-known Seattle chef, Kathy Casey, and Ivar’s Seafood Bar is an outlet of a local chain that dates back to 1938 known for its chowders.

18 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

BRIEFS GET ON THE LIST

Next up: Franchises, Employment agencies Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are: â&#x20AC;˘ Oct. 5: Home builders, Custom home builders, Largest apartment complexes â&#x20AC;˘ Oct. 12: Franchises, Employment agencies

â&#x20AC;˘ Oct. 19: Alarm system companies, Security firms, Insurance agencies and brokers, Property casualty insurance â&#x20AC;˘ Oct. 26: Women-owned businesses â&#x20AC;˘ Nov. 2: Chambers of commerce, Business and trade organizations If your business fits one of these categories, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions. The Book of Lists is a year-round reference for thousands of businesses and

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individuals. To advertise your business, call (520) 294-1200.

ECONOMIC DEVELOPMENT

Center for Innovation announces new companies The Arizona Center for Innovation (AzCI) has admitted four startup companies into its fall 2012 Mentored Launch Program. The new clients are: â&#x20AC;˘ DemeteRx Pharmaceuticals, an early stage biotechnology company developing human cancer therapeutics derived from natural products. â&#x20AC;˘ Dâ&#x20AC;&#x2122;Mention Systems, a company developing a software system to facilitate activity between University students and host organizations. â&#x20AC;˘ Legionnaire Credit Solutions (LCS) LLC, which is developing an innovative solution to help customers improve their credit scores. â&#x20AC;˘ Puretex Hygienics, which is focused on developing and manufacturing eco-friendly personal care products for the worldwide market. Mentored Launch is a program of business development that assists start-up companies through a series of workshops, seminars and networking events. The companies also receive individual coaching from mentors experienced in technology innovation, product development and business management. The companies will work out of spaces at AzCIâ&#x20AC;&#x2122;s Innovation Center in the UA Tech Park, 9040 S. Rita Road.

PUBLIC SAFETY

Insurers give San Manuel Fire Dept. $5K grant Independent Insurance Agents & Brokers of Arizona (IIABAZ) and Firemanâ&#x20AC;&#x2122;s Fund Insurance Company are awarding a $5,000 grant to San Manuel Fire Department to purchase new fire hoses. The fire department will replace worn out, defective water supply hoses and quick attack hand-held lines. The IIABAZ solicited and received numerous grant nominations from independent insurance agents throughout Arizona for local fire departments in need. The Mahoney Group helped identify the San Manuel Fire Department as one in need for funds in the grant application. The grant is part of a nationwide philanthropic program funded by Firemanâ&#x20AC;&#x2122;s Fund Insurance Company. The program is designed to provide needed equipment, training and educational tools to local fire departments and burn prevention organizations. Since 2004, Firemanâ&#x20AC;&#x2122;s Fund has issued grants to nearly 1,900 different organizations totaling more than $29 million â&#x20AC;&#x201D; including more than $310,000 in Arizona.

HEALTH CARE

Carondelet relocation to west side underway Carondelet Heart and Vascular Institute has announced plans to complete the first phase of its planned relocation to the Carondelet St. Maryâ&#x20AC;&#x2122;s Hospital campus by early November. In April, Carondelet Health Network announced plans to relocate the institute from the campus at 4888 N. Stone Ave., to the west side campus at 1601 W. St. Maryâ&#x20AC;&#x2122;s Road. Carondelet plans to invest $17 million to build the instituteâ&#x20AC;&#x2122;s new home at St. Maryâ&#x20AC;&#x2122;s Hospital. That work is well underway and construction is expected to be completed by May 2013. Surgeons, clinicians and care teams will be in place and set to perform their first open heart surgery at St. Maryâ&#x20AC;&#x2122;s on Nov. 7. The Carondelet Heart & Vascular Institute at St. Maryâ&#x20AC;&#x2122;s Hospital will include a dedicated Cardiovascular Intensive Care Unit, a specially appointed hospital wing with all-private rooms for the care and recovery of cardiovascular patients, inpatient and outpatient cardiac rehabilitation services, new cardiovascular operating suites, new catheterization labs, electrophysiology and cardiac testing area. Patients will continue to be cared for at Carondelet Heart and Vascular Instituteâ&#x20AC;&#x2122;s River and Stone facility until early November.

COMMERCIAL REAL ESTATE

Scottsdale developer boosts old Sendero Pass project A 516-acre parcel in the â&#x20AC;&#x153;path of growthâ&#x20AC;? directly across from Ryan Air Field has been acquired by a Scottsdale investor/developer for $2.84 million. The property is part of the large 837-acre Sendero Pass Master Plan that will be developed as a residential, commercial and industrial mixed use project. Known as Sendero Pass 516, the site is located at west Valencia Road and south Victor Drive, just south of Ryan Air Field at 9698 W. Ajo Highway. The seller was Tucson 516 LLC, based in Las Vegas. The buyer was SBH Sendero LP of Scottsdale, an affiliate of Sunbelt Investment. The transaction was handled by Will White of Land Advisors Organization. â&#x20AC;&#x153;This is really good for the southwest side, a rebirth of old plans dormant since about 2006,â&#x20AC;? said White. â&#x20AC;&#x153;Sunbelt is an extremely talented, experienced developer that will breathe some life into the area.â&#x20AC;? Pima County has identified Sendero Pass as a designated location that is expected to experience a significant growth in population.

POLITICS

Tucson Chamber PAC endorses candidates The Tucson Metro Chamberâ&#x20AC;&#x2122;s Southern Arizona Business Political Action Committee has issued its endorsements for the Nov.

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

PEOPLE IN ACTION

ALI A. BAAJ

NEW HIRES The Ritz-Carlton, Dove Mountain has hired Daniel Mangione to executive pastry chef. A native of California, Mangione has advanced degrees in baking and pastry arts. He joins The Ritz-Carlton, Dove Mountain from The Ritz-Carlton, Washington, D.C. and The Ritz-Carlton, Georgetown, where he served as executive pastry chef. Neurosurgeon Ali A. Baaj, MD, a specialist in minimally invasive spine surgery, has joined the University of Arizona Department of Surgery as assistant professor and director of the Spinal Neurosurgery Program. He brings to Southern Arizona new minimally invasive spine surgical techniques for patients with disorders of the spine and spinal cord. In addition to minimally invasive spine surgery, Baaj is trained in complex spinal reconstruction and the surgical management

ELI CHAPMAN

of spinal tumors and adult deformities. His clinical interests include spinal oncology, complex thoraco-lumbar and sacro-pelvic reconstructions and minimally invasive spine procedures. Baaj recently completed a spinal neurosurgical fellowship at Johns Hopkins University with emphasis on spinal column tumors. Baaj obtained his medical degree from Boston University, and neurosurgery residency training at the University of South Florida in Tampa. He also completed a research fellowship in spinal biomechanics at the Barrow Neurological Institute in Phoenix. Catalina Foothills School District Foundation has hired Betsy T. Green as executive director. Green has more than 25 years of experience in marketing and development management. She most recently was director of development for Gabriel’s Angels of Southern Arizona. She also worked for 15 years

6 general election. For the Arizona Corporation Commission, the group bypassed the three incumbents up for reelection and instead endorsed the three challengers: Democrat Marcia Busching and Republicans Susan Bitter Smith and Robert “Bob” Burns. Among contested state legislative races, the chamber endorsements are: District 9: Democrat Steve Farley over Republican Tyler Mott for Senate. Democrat Victoria Steele and Republican Ethan Orr over Mohur Sarah Sidhwa for the House. District 10: Democrat David Bradley over Republican Frank Antenori for Senate. Democrat Bruce Wheeler and Republican Ted Vogt, over Todd Clodfelter and Stefanie Mach for House. District 14: Republican Gail Griffin over Democrat Patricia Fleming for Senate. Republicans David Gowan and David Stevens over Robert Leach and Mark Stonebraker for the House. The chamber PAC made endorsements in two of the four contested Pima County supervisors races: Republican Ally Miller in District 1 over Democrat Nancy Young

MARCELLA HOYLAND

with KMSB-TV in Tucson where she was director of business development. Green has a B.S. in education from the University of Wisconsin-Madison. The Catalina Foothills School District Foundation is an independent non-profit organization founded in 1983 to provide support to the Catalina Foothills Unified School District No. 16. The group has raised more than $1 million for the school district’s students in the last three years.

University of California at Berkeley, a master’s degree in chemistry from Columbia University in New York and a doctorate in chemistry from the Scripps Research Institute in La Jolla, Calif.

The University of Arizona College of Pharmacy has hired Dr. Eli Chapman as an assistant professor in the Department of Pharmacology and Toxicology. Chapman came to UA from the Scripps Research Institute in La Jolla, Calif. His research interests include macromolecular machines, drug discovery and small-molecule drug discovery. Chapman teaches principles in drug discovery, design and development. He has a bachelor’s degree in chemistry from the

The University of Arizona College of Pharmacy has hired Dr. Marcella Hoyland as an assistant professor in the Department of Pharmacy Practice and Science. She has a joint appointment as an internal medicine pharmacist at The University of Arizona Medical Center – University Campus. Hoyland has clinical interests in internal medicine and nephrology. Her academic interests include creating simulations and case-based learning scenarios for pharmacy

NANCY WHITLOCK

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print.

Wright and incumbent Democrat Ramón Valadez over his Republican challenger James Kelley in District 2. It’s only other county-wide endorsements went to incumbents in two races: County Recorder F. Ann Rodriguez, a Democrat, over Republican Bill Beard and County Treasurer Beth Ford, a Republican, over Elaine Richardson, a Democrat. To receive an endorsement, candidates were interviewed by the chamber’s Candidate Evaluation Committee, which is made up of five registered Democrats, five registered Republicans and four registered Independents.

EDUCATION/RESEARCH

UA study seeks better breast cancer treatment University of Arizona Cancer Center researchers seeks participants for a study designed to determine if a compound found in broccoli can enhance the health-promoting effects of the breast cancer drug Tamoxifen in women at risk of developing breast cancer or those previously treated for early-

students. She teaches within the pharmacotherapy sequence. Hoyland holds a doctorate degree from West Virginia University School of Pharmacy. The Tucson Junior Strings Board of Directors has hired Nancy Whitlock as a business manager. Whitlock will be responsible for leading the strategic growth and business management of the organization. Whitlock has more than 15 years of leadership experience with non-profit organizations and 25 years of management experience in the corporate sector. Whitlock studied at the University of Illinois, the Appraisal Institute and earned a bachelor’s of fine arts from Cranbrook in

JOHN GIBSON

Bloomfield Hills, Michigan. AWARDS Lewis and Roca has announced that six of the firm’s Tucson-based attorneys have been named to the 2012 Super Lawyers Business Edition. They include: Frank S. Bangs Jr., Robert M. Charles Jr., John N. Iurino, Andrew D. Schorr, Lewis D. Schorr and S.L. Schorr. The 2012 Super Lawyers Business Edition is a resource that features attorneys selected in 2011 to the Super Lawyers list from 29 specific business practice areas. PROMOTIONS Wells Fargo has announced that John Gibson has been named area president for Wells Fargo in Southern Arizona. In his new role, Gibson will be responsible for 582 team members and 42 banking stores with $2.5 billion in deposits. Gibson began his career with Wells Fargo in 2005

stage breast cancer. Since receiving a $3 million grant from the National Cancer Institute in 2011, UACC researcher Dr. Cynthia Thomson and her team have recruited about 50 women who are taking Tamoxifen for the DIME study. Enrollment will continue through December 2013 with a goal of 170 participants. Tamoxifen is an accepted treatment for breast cancer. Thomson, a professor of Health Promotion Sciences in the Mel and Enid Zuckerman College of Public Health at the University of Arizona, notes that data from diet studies of people who have a higher intake of cruciferous vegetables – cauliflower, Brussels sprouts, kohlrabi and broccoli – suggest that intake may reduce the risk of certain cancers, including breast, colorectal, bladder and possibly prostate. Study participants will be asked to take the supplement or placebo for 18 months and complete periodic clinical evaluation visits.

JESSE R. CALLAHAN

as a teller and since that time has been a personal banker, service manager and store manager. Gibson most recently served as district manager for Greater Tucson Metro where he was responsible for 275 team members and 17 stores. He earned bachelor’s and a master’s degrees in business administration from Arizona State University and currently is enrolled in the Pacific Coast Banking School at the University of Washington.

Phoenix and Tucson offices. His primary areas of practice include bankruptcy and commercial litigation, with an emphasis on construction law related issues. C. Bradley Vynalek, an attorney with Quarles & Brady, has been elected president of the University of Arizona’s Law College Association. The association provides support in financial assistance, fund-raisers and alumni activities. Vynalek has a law degree from the University of Arizona.

ELECTIONS CERTIFICATIONS Loose, Brown and Associates attorney Jesse R. Callahan has been elected a member of the Pima County Bar Association Board of Directors. Callahan is a 2007 graduate of the University of Arizona James E. Rogers College of Law and an active member of the Volunteer Lawyers Program and Phi Beta Kappa. Callahan is an associate attorney at Loose, Brown, & Associates, P.C., where he works in both the

Bogutz & Gordon, P.C. attorney, Ana PerezArrieta, has been certified by the State Bar of Arizona as a specialist in estate and trust law. Perez-Arrieta is one of only 10 lawyers in Tucson to receive the certification. She joins fellow Bogutz & Gordon attorneys Craig Wisnom and Benjamin Burnside with this distinction. Ana joined Bogutz & Gordon, P.C. in October 2011.

For more information about the DIM study, call Julie West at (520) 321-7748.

HUMAN RESOURCES

Pima County gets $1.25M for veterans training Pima County has received a $1.25 million federal grant to help train veterans in Southern Arizona. The U.S. Department of Labor grant was awarded to the Pima County One-Stop career centers. The county operates the Kino Veterans Workforce Center, which is focused on helping unemployed veterans. The grant will fund training in fields including software and computer services, construction, auto mechanics, security, logistics, nursing, physical and occupational therapy, hospitality and the culinary arts, among others. Pima County won the only Arizona grant in this round of awards. Eleven grants totaling $11.53 million were awarded on a competitive basis to organizations in 10 states. The winning agencies are familiar with

20 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

MEDIA

Alan Michaels and KWFM part ways; station off the air for days By David Hatfield Inside Tucson Business Radio station KWFM 1330-AM — formerly KJLL “the Jolt” — stopped broadcasting late the morning of Sept. 20, although it continued to stream its mostly progressive talk programming until some point late in the day Tuesday this week when even that stopped. Separately Alan Michaels, who had been operations manager since February, said he and the station had parted ways. He said he didn’t know why the station was off the air, saying it happened after he had left. “Right now, I’m just looking for the next opportunity,” Michaels said, adding he thought it may be be difficult to stay in radio, but he’s leaving all doors open. “The one thing I would really like to be known is that I went in there with the best of intentions and I believed we could really do something good,” Michaels said. In January, the station changed its branding from the Jolt to the Star. Hiring Michaels in February fed rumors of an impending change in formats from talk to music. Michaels now says he was making plans to convert the format to a personality-driven music station playing hit songs from the 1960s, ’70s and ’80s. He planned to do the morning show himself — something he had been known for when he worked for Clear

the areas and populations to be served, and have demonstrated that they can administer effective programs, Solis said. The county has received grants as part of this program since 2006, with 1,667 veterans placed into private sector jobs.

Metro Chamber partners with EffortlessHR The Tucson Metro Chamber and EffortlessHR have entered into a partnership which will offer chamber members access to a human resource information system at a discounted rate. EffortlessHR is an Internet-based human resource program built specifically for small and mid-sized businesses that need an easy-to-use way to set up and manage their employees. EffortlessHR’s services are designed to help the busy small business owner better organize and communicate with their employees.

CIVIC

Medical foundation to award nonprofit grants The Tucson Osteopathic Medical Foundation has re-launched the Trustee Awards, a microgrant program that will give $1,000 each month to a different non-profit organization working to improve community

Channel’s oldies format station, Cool. Beyond that he said he had found a local midday personality who agreed to come over to the station. Initially, Michaels said he had hoped to have the format change in place in April but that got delayed and then, due to various subsequent complications, the change was never green-lighted. Although Michaels says he wished he could have pursued the format change. He says he gave up a good position with a tech firm to go to work at KWFM. “I just have a passion for radio,” he said. Although it didn’t work out, he says he doesn’t want to come off sounding like he has a case of sour grapes. He wouldn’t even say whether he felt he had been fired or quit, acknowledging only that he and the station had parted ways. Meanwhile, KWFM remained off the air for a sixth consecutive day Wednesday. The receptionist who answered the phone at the station was adamant that the station would return the air but she didn’t know when. The station could be heard when she placed my call on hold on Wednesday, although online streaming was not functioning. The station was off the air Sept. 20 when former Tucson City Councilman Steve Leal came in to do his talk show at noon Sept. 20. Although it wasn’t broadcast he went ahead and taped and was told it would air when-

health. The first award will be given in January, however applicants can submit proposals now at www.tomf.org. The previous version of the Foundation’s Trustee Awards was less frequent but funded many organizations including the Community Food Bank, Children’s Museum Tucson, and Arizona Theatre Company.

ever the station resumed broadcasting.

UA game on Ch. 11 So much for my theory last week that University of Arizona Wildcats fans might finally find themselves outraged Oct. 6 over the impasse between the Pac-12 Networks and DirecTV to make a deal. The conference announced this week the Wildcats game at Stanford that day will be shown live on Fox. So not only is it not necessary to have the Pac-12 Network that weekend to see the game in Tucson, you won’t even need cable or satellite as the game will be shown live on KMSB 11. Kickoff is at noon.

Names in news A management position is opening up at the Arizona Daily Star where managing Teri Hayt is leaving to become an executive editor for GateHouse Media and its eight publications in Ohio, which includes three dailies: The Repository in Canton, the Times-Reporter in New Philadelphia and the Independent in Massillon along with three weekly entertainment publications and two free shoppers in the state. Earlier this month, Hayt was elected an officer in the Associated Press Media Editors organization which puts her in line to be president in 2016. Hayt is due to start her new job Oct. 15. Debbie Wagner, who spent all but five

Food Bank gets $40k from Fry’s Food Stores The Community Food Bank of Southern Arizona has received a $40,000 donation from Fry’s Food Stores. The donation comes from Fry’s “Bringing Hope to the Table” annual cause-marketing program partnership. Since 2006 the program has directed over $25 million in cash and food to local food banks across the country. Fry’s 2012 “Bringing Hope to the Table” campaign raised nearly $154,000.

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

TUCSON INTERNATIONAL AIRPORT 2012 PASSENGER STATISTICS Airline passenger traffic through Tucson International Airport in August was up 2.5 percent to 281,383 from 274,583 in August 2011. The increase tipped the year’s passenger totals back over to an increase for the year over 2011. The August increase came despite airlines reducing capacity at the airport 6.2 percent from a year ago. Through eight months of 2012, passenger numbers are up 0.2%. This chart shows each airlines’ passenger totals and market share so far for 2012 compared to the first eight months of 2011.

Airline

NONPROFITS

years of her 33-year media career in Tucson, is out as president and market manager of Clear Channel’s seven-station radio group in San Diego. She was replaced without explanation this month. Wagner had been Clear Channel’s Tucson market manager for five years before she was tapped by the company in December 2008 to go to San Diego. Among her claims to fame while in Tucson was launching the “Johnjay and Rich” morning radio show that is now based in Phoenix and airs on eight other stations. This summer Wagner was named one of Radio Ink magazine’s Most Influential Women for 2012. Monday was the last day on the job for Tammy Vo, a reporter and weekend anchor who had been at KGUN 9 since January 2008. Her husband, KGUN’s former weekend sports anchor Jake Knapp, left the station earlier this year for Phoenix where he’s now working for Gannett. Valerie Cavazos is the new weekend news anchor on KGUN. She joined the station a year ago. Previously in her career Cavazos had been a morning co-anchor at KOLD 13 for nearly six years until October 2004 before leaving to start her own multimedia firm.

Jan.-Aug. 2012 Jan.-Aug. 2011 Change Passengers Market Passengers Market Passengers % Share

Nonstop destinations

Southwest

838,828

34.3%

823,848 33.8%

+14,980

+1.8%

547,704 22.4%

+25,765

+4.7%

334,348 13.7%

+20,507

+6.1%

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

American

573,469

23.4%

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

United (Continental)

354,855

14.5%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways

273,906

11.2%

290,079 11.9%

-16,173

-5.6%

269,957

11.0%

264,262 10.8%

+5,695

+2.2%

Phoenix

Delta

Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska

81,423

3.3%

72,014

3.0%

+9,409

+13.1%

53,796

2.2%

109,092

4.5%

-55,296

-50.7%

+4,887

+0.2%

Seattle

Frontier

Discontinued service as of May 18

Total

2,446,234

2,441,347

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

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

CALENDAR SPECIAL EVENTS

Employment Law Breakfast Brieﬁng Tuesday (Oct. 2) 7:30 to 9:30 a.m. Westward Look Resort 2450 E. Ina Rd. Contact: Shirley Wilka swilka@tucsonchamber. org or (520)792-2250 www.tucsonchamber.org Presented by Fennemore Craig, learn how to protect yourself from costly NLRB charges and ADA complaints SAHBA Fall Home and Garden Show Friday (Oct. 5) through Sunday (Oct. 7) 10 a.m. to 7 p.m. Friday and Saturday and 10 a.m. to 5 p.m. Sunday Tucson Convention Center 260 S. Church Avenue Contact: Amy McReynolds, amy@sahba.org or (520) 795-3025 $8 for adults www.sahbahomeshow.com Candidate forum Tuesday (Oct. 9) 6 to 8:30 p.m. Pima Community College West Campus--Proscenium Theater 2202 W. Anklam Road Contact: Shirley G. Muney, smuney2k@yahoo.com or (520) 327-7652 Candidate forum for Congressional District 3 organized by The League of Women Voters of Greater Tucson, Pima Community College and the Hispanic Chamber of Commerce. Tucson Meet Yourself Folklife Festival Friday (Oct. 12) through Sunday (Oct. 14) 11 a.m. to 10 p.m. Friday and Saturday 11 a.m. to 6 p.m. Sunday Downtown Tucson 7 sites spanning 60 acres off Church Avenue Contact: Echo Surina echo@tucsonmeetyourself. org or (602) 332-9445 www.tucsonmeetyourself.org 8th Annual Tucson Record Show Sunday (Nov. 11) 9 a.m. to 3 p.m. Las Cazuelitas Event Center 1365 W. Grant Road Contact: Bruce Smith cassidycollectibles@earthlink. net or (520) 622-0104 Cost: $4 Dealers from all over the Southwest will be selling vinyl, tapes, CDs and

music memoribilia. Dealer tables are $35. REGULAR MEETINGS

Annuity Investment Seminars Common mistakes of annuity owners Every Tuesday 3:30 p.m. Bookmans 6230 E. Speedway Information: (520) 990-0009 Arizona Business Leads of Tucson North Every Wednesday except the first Wednesday of the month 7:30 to 9:00 a.m. Mimi’s Café 4420 N. Oracle Road Info and RSVP: jill@ ronstadtinsurance.com Arizona Real Estate Investors Association Second Tuesday, 5:30 to 8:30 p.m. Windmill Suites 4250 N. Campbell Road Information: (480) 9907092 or www.azreia.org Cost: Free, members, $15 nonmembers preregistered ($20 door) Arizona Small Business Association SO/HO (Small Office/ Home Office Community) First and Third Wednesdays 8:15 to 9:30 a.m. ASBA conference center, 4811 E. Grant Road, Suite 262 Information: www.asba.com Cost: Free to ASBA members Avra Valley Community Council Monthly meetings Fourth Tuesday of every month, 6 p.m. Halberg Center 15790 W. Silverbell Road Contact: Carlie Page at (520) 682-5139 or Luis Castaneda at (520) 682-6619 BNI Executive Partners Chapter Business Network International Every Wednesday, 1 to 2:30 p.m. Tucson Osteopathic Medical Foundation 3182 N. Swan Road RSVP: Phyllis Daugherty (520) 405-5659 BNI Leading Edge Chapter Business Network International Every Tuesday, 7 to 8:30 a.m. Viscount Hotel 4855 E Broadway RSVP: Earl Yousey (520) 229-7718

BNI Givers Gain Chapter Business Network International Every Friday 11:30 a.m. to 1 p.m. El Parador, 2744 E. Broadway RSVP: Chuck Zaepfel (520) 740-0911

Business Principals of Tucson First and third Thursdays 7 to 8 a.m. The Hungry Fox, 4637 E. Broadway RSVP: Steve Dunlap at (520) 622-0554

BNI Northwest Chapter Business Network International Every Thursday 7 to 8:30 a.m. Home Town Buffet, 5101 N. Oracle Road RSVP: Audrey Sharpe (520) 405-1405

Casas Adobes Rotary Club Every Wednesday 7 to 8 a.m. La Paloma Country Club, 3660 E. Sunrise Drive Information: www. casasadobesrotary.org

Tucson Night Out First Tuesday Mixer First Tuesday of the month 5 to 7 p.m. McMahon’s Prime Steakhouse, 2959 N. Swan Road Information: www. tucsonnightout.com BNI Peak Performers Business Network International Every Tuesday 11:30 a.m. to 1 p.m. The Grill at Hacienda Del Sol, 5601 N. Hacienda Del Sol Road RSVP: Rochelle Riley (520) 297-9067 BNI Platinum Chapter Business Network International Every Thursday 11:30 a.m. to 1 p.m. The Loop, 10180 N. Oracle Road RSVP: Rose Ann Weaver (520) 818-3673 BNI Sunrise Success Chapter Business Network International Every Thursday 7 to 8:30 a.m. Miguels, 5900 N. Oracle Road RSVP: Alexcis Reynolds (520) 690-6576 BNI Professional Partners Chapter Business Network International Every Wednesday 11:30 a.m. to 1 p.m. Tucson Country Club, 2950 N. Camino Principal RSVP: Kevin Wood (520) 260-3123

Catalina Tucson Rotary Weekly meeting of the Catalina Tucson Rotary Club Every Friday noon Viscount Suites Hotel 4855 E. Broadway Info: Steve Pender steve@ familylegacyvideo.com or (520) 745-6500 Cost: $20 www.catalinarotary.org Cienega Rotary Club Every Tuesday 5 to 6:15 p.m. Del Lago Golf Club 14155 E. via Rancho Del Lago Information: http:// cienegarotary.org Connections Monthly contacts luncheon First and third Wednesdays 11:30 a.m. to 1 p.m. McMahon’s Prime Steakhouse 2659 N. Swan Road RSVP: Cindy Morgan at (520) 403-8798 or morgansautoshop@aol.com Cost: $16 includes lunch Conquistador Toastmasters Every Wednesday 7 to 8:30 p.m. ASBA conference center 4811 E. Grant Road, Suite 261 Contact: Saul Silven at (520) 885-3497 RSVP: requested for guests Cost: guests free Desert Stars Toastmasters Every Tuesday, noon U of A Science & Tech Park Building 9040, Room 2216 Contact: Jim Eng (520) 6639118 or jim_eng@juno.com

{YOUR EVENT HERE} Submissions: Deadline for calendar submissions is 10 days prior to publication. Post your event online at www. insidetucsonbusiness.com/calendar. Email any questions to pmcnamara@azbiz.com.

A complete calendar listing is at

InsideTucsonBusiness.com

Information: www.Desertstars. freetoasthost.com

446 N. Campbell Ave. Suite 150 Info: www.grotucson.com

Entrepreneurial Mothers Association Monthly luncheon First Thursday 11:30 a.m. to 1 p.m. Old Pueblo Grill 60 N. Alvernon Way Information: Sherry Goncharsky, sherry@ tucsoncomputerskills.com

Independent Business Networking Tucson “IBNT” Second and fourth Tuesdays El Parador 2744 E. Broadway RSVP: Jennifer Row at (520) 603-3315 or jenniferrr@ novahomeloans.com Cost: First time is free

Financial Workshops for Women Every Tuesday at 6 p.m. Barca Financial Group 5470 E. Speedway Suite A106 Information: www. barcaﬁnancial.com Foothills Optimist Club First and third Wednesdays, noon Macayo’s Restaurant 7360 N. Oracle Road Info and RSVP: (520) 744-5927 Foothills Rotary Club Every Friday, noon Metropolitan Grill 7892 N. Oracle Road RSVP: Eric Miller, (520) 979-1696 The Foothills Club of Tucson Second Friday 12:30 to 2:30pm Hacienda Del Sol 5501 N. Hacienda Del Sol Rd Contact: Leslie Hargrove (520) 445-9237 www.foothillscluboftucson.com Fountain Flyers Toastmasters Every Tuesday 6:30 a.m. Coco’s Restaurant 7250 N. Oracle Road Information: Cheryl at (520) 730-4456 Cost: Free to visit Got a business challenge, 30 minutes & 20 bucks? Every Tuesday and Thursday 8 to 9 a.m. Savaya Coffee Market 5530 E Broadway Ste.174 Info: Dale Bruder, Dynamic Strategist strategy@ dalebruder.com (520) 331-1956 www.dalebruder.com $20 Group Referral Organization networking group First and third Wednesdays Luna Bella 2990 N. Swan Road Suite 145 www.grotucson.com GRO II Second and fourth Thursdays Sam Hughes Championship Dining

Inside Connections Second and fourth Wednesday, 7:15 a.m. Home Town Buffet 5101 N Oracle Road RSVP: Eric Miller at (520) 979-1696 Institute of Management Accountants Third Thursday, (September through May) 6:30 p.m. to 8 p.m. Old Pueblo Grille 60 N. Alvernon Way RSVP: Gale McGuire (520) 584-3480 or gale. mcguire@roberthalf.com International Association of Administrative Professionals San Xavier Chapter monthly dinner & professional development meeting Every third Wednesday, 5:30 to 8 p.m. Sheraton Four Points Hotel 1900 E. Speedway RSVP: Kay at franklin@ dakotacom.net or (520) 883-1819 Cost: $18 members, $20 nonmembers, includes dinner “Real Estate Investment Plan” Keller Williams Southern Arizona 1745 E. River Road, Ste. 245 Third Tuesday 6 p.m. Workshop for individuals considering investment RSVP by noon Mondays (520) 909-9375 Kiwanis Club of Oro Valley Wednesdays, 7 a.m. Holiday Inn Express 10150 N. Oracle Road Info: jepsenaz@comcast.net Cost: $8 LeTip Midtown Every Tuesday, 7:01 to 8:31 a.m. El Parador Restaurant 2744 E. Broadway RSVP: (520) 296-9900 Cost: $10 LeTip Tucson Executives Chapter meeting Every Tuesday, 11:30 a.m. to 1 p.m. Macayo’s Mexican Kitchen 7360 N. Oracle Road RSVP: (520) 299-9600, bwmartin@cox.net

22 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Some ideas to consider to be prepared for the ‘financial cliff ’ As an investor, you can sometimes still feel you’re at the mercy of forces beyond your control. This may be especially true these days, when the Federal Reserve has warned of an approaching “fiscal cliff.” What can you do in the face of such a dire prediction? First of all, you need to understand what led to the Fed’s remarks. Here’s the story: Some $1.2 trillion in spending cuts are scheduled to begin in 2013 while, simultaneously, the Bush-era tax cuts — including the reduction in capital gains and dividend taxes — are set to expire. This combination of spending cuts and higher taxes could take $600 billion out of the economy, leading to a possible recession — and maybe something much worse, at least in the eyes of the Fed. Still, there’s no need for panic. Despite the political infighting, Congress is likely to reduce the “cliff ” to a smaller bump, though it probably won’t happen until after the Nov. 6 election. But as an investor, you may need to be prepared for two significant events: market volatility, at least in the short term, and higher taxes, probably for the foreseeable future. To combat market volatility, you need to own a broadly diversified portfolio that can handle “bumps,” “cliffs” and other rugged investment terrain. This means you’ll need a mix of stocks, bonds and other securities that are suitable for your needs. Keep in mind though, that while diversification can reduce the impact of market volatility, it cannot guarantee profits or protect against losses. You may also need to “rebalance” your portfolio to ensure that it’s still aligned with your goals, risk tolerance and time horizon, despite the impact of volatility. Now, let’s turn to taxes. Even if taxes on income, capital gains and

dividends do rise, they will still, in all likelihood, be much lower than they’ve been at various points in the past. Nonetheless, you may want to consider a variety of steps, including the following: TIM BEITHON • Take advantage of tax-deferred vehicles. Contribute as much as possible to your traditional IRA, your 401(k) or other employersponsored retirement plan, and any education savings accounts you may have, such as a 529 plan. • Consider converting your traditional IRA to a Roth IRA. A Roth IRA provides tax-free earnings, provided you don’t start taking withdrawals until you’re 59½ and you’ve had your account for at least five years. Be aware though, that this conversion is taxable and may not be appropriate if you don’t have money readily available to pay the taxes. • Consider municipal bonds. If you’re in one of the upper tax brackets, you may benefit from investing in “munis,” which pay interest that’s free of federal taxes, and possibly state and local taxes as well. Not all these choices will be suitable for your situation, of course. Before taking action on these items, consult with your tax and financial advisors. Give these options some thought because they may prove helpful in keeping your financial goals from going “over a cliff.”

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

BBB of Southern Arizona • 520-888-5353 • 5151 E. Broadway Blvd., Ste. 100 • Tucson, AZ

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

Company Name

Symbol Sept. 26 Sept. 19 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.04 0.02 12.69 42.30

0.04 0.02 13.02 40.80

0.00 0.00 -0.33 1.50

0.03 0.01 9.36 34.28

0.37 0.10 15.94 42.71

8.89 0.10 2.78 8.81 58.78 7.83 88.33 17.59 58.66 3.64 18.55 32.51 35.12 28.53 31.93 15.36 101.00 41.23 47.83 9.16 72.94 58.87 20.90 39.28 28.20 59.17 59.44 204.00 33.61 57.97 5.34 40.24 35.74 13.90 51.39 23.51 1.49 34.64 30.00 40.96 57.30 37.75 39.01 37.99 46.41 66.19 24.55 15.30 57.59 47.19 15.99 43.55 54.84 10.53 8.92 44.45 34.65 63.83 16.83 27.57 44.64 20.16 118.92 28.75 10.50 33.95 74.19 35.82 34.42 10.22 20.37

9.47 0.41 2.76 9.29 59.77 8.43 88.95 17.94 59.03 3.64 19.50 34.18 35.38 29.37 33.54 16.06 101.88 42.18 47.71 9.37 78.76 60.58 22.22 41.54 29.57 59.47 61.28 206.43 33.65 58.63 5.59 41.34 36.44 13.16 53.46 23.99 1.50 36.26 29.59 41.72 60.25 39.04 40.90 39.73 47.83 66.90 29.09 16.43 58.15 48.08 16.46 44.22 61.60 10.75 9.06 43.92 35.17 65.01 17.17 28.69 45.51 20.69 125.05 29.62 10.97 34.34 74.37 35.81 35.25 9.99 21.15

-0.58 -0.31 0.02 -0.48 -0.99 -0.60 -0.62 -0.35 -0.37 0.00 -0.95 -1.67 -0.26 -0.84 -1.61 -0.70 -0.88 -0.95 0.12 -0.21 -5.82 -1.71 -1.32 -2.26 -1.37 -0.30 -1.84 -2.43 -0.04 -0.66 -0.25 -1.10 -0.70 0.74 -2.07 -0.48 -0.01 -1.62 0.41 -0.76 -2.95 -1.29 -1.89 -1.74 -1.42 -0.71 -4.54 -1.13 -0.56 -0.89 -0.47 -0.67 -6.76 -0.22 -0.14 0.53 -0.52 -1.18 -0.34 -1.12 -0.87 -0.53 -6.13 -0.87 -0.47 -0.39 -0.18 0.01 -0.83 0.23 -0.78

7.97 0.20 1.48 4.92 50.95 5.30 69.07 16.25 45.07 3.30 12.51 21.40 19.72 14.61 22.19 8.49 78.41 31.16 32.28 6.64 40.01 43.64 8.03 28.85 17.52 31.03 41.22 168.88 27.10 44.82 2.69 27.85 25.73 5.02 42.72 20.98 0.49 12.14 18.55 32.90 38.64 24.38 25.56 13.68 33.20 50.13 19.06 3.29 38.68 36.50 14.73 31.61 28.89 6.25 7.15 34.55 21.09 47.25 14.04 26.06 28.43 15.51 77.73 25.77 3.96 21.84 51.29 28.53 22.61 4.99 13.18

11.66 3.33 4.06 10.10 61.40 9.94 89.24 28.53 60.00 4.93 21.16 38.40 36.90 29.59 34.74 16.55 103.51 43.43 48.69 12.25 79.23 67.20 22.79 48.96 30.88 60.58 62.00 210.69 34.18 62.33 5.85 46.49 37.17 15.65 56.66 24.83 1.81 38.27 32.29 42.86 62.83 42.17 41.84 42.59 49.68 70.20 43.18 17.47 58.68 48.20 23.16 44.97 85.90 14.32 10.05 46.08 36.28 65.80 18.66 34.24 46.56 25.84 129.27 58.29 14.51 35.15 75.24 36.85 36.60 10.43 22.81

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

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Housing performance scores stronger in all submarkets make foreclosed and vacant homes in the target area energy efficient, available and affordable. For program details: go to www.pnip.org or call (520) 243-4663.

By Roger Yohem Inside Tucson Business

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

TUCSON REAL ESTATE

9/17/2012

9/10/2012

$145,000 4,256 383 346 182

$145,000 4,202 399 351 183

Source: Long Realty Research Center

Three under 200

Roger Yohem

Coldwell Banker’s August Residential Market Report provides further evidence the Tucson region’s real estate market continues to make slow, steady gains. Based on a year-over-year analysis, each governmental jurisdiction within the region has posted improved performance. In the city of Tucson, there have been 7,489 sales year-to-date, 8 percent ahead of last year’s 6,930. On average, homes sold four days faster in the city than in August 2011. The August selling price per square foot was $95, up from $83 a year ago. The measure indicates the direction of property values since the mix of high and low-end sales impact median and average sales prices, according to Malcolm MacEwen, CEO of Coldwell Banker. The median sales price in Tucson was $142,000, up 23.5 percent from $115,000 in August 2011. The average sales price was $177,702, up 16 percent from $153,185 a year ago. In Oro Valley year-to-date, there have been 514 sales, 23 percent more than last year’s 419. The median sales price was $240,459 up 14.5 percent from $210,000 in August 2011. Year-over-year, the average sales price rose 12 percent from $256,579 to $287,172. The selling price per square foot was $127 compared to $120 a year ago. In Sahuarita, home sales have dropped to 334 year-to-date, from 380 for the same period a year ago. The August days-onmarket was 135, up from 89 days a year ago. The median sales price was $138,000, a

By almost every measure, housing market is showing year-to-date improvement

$10,000 increase from August 2011. The average sales price of $156,643 was 11 percent higher than the August 2011 level of $140,735. The selling price per square foot was $73 compared to $70 a year ago. In Marana, August sales were 340 compared to 328 a year ago and the average selling time has lengthened from 108 to 128 days. Last month, the $180,000 median sales price rose from $172,000 in August 2011. The average sales price of $270,231 was 42.5 percent higher than the $189,578 in August 2011. The selling price per square foot increased 36 percent to $120 from $88 a year ago, according to Coldwell Banker.

Architecture week Architects will look “back to see the future” during Southern Arizona Architecture Week, starting Saturday (Sept. 29) and running through Oct. 7. In recognition of the state’s centennial, the Tucson chapter of the American Institute of Architects (AIA) will present a series of lectures, mall exhibits, a home tour and other activities. Three public events kick off the celebra-

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

Current

Last Week

9/25/2012

One 12 Month 12 Month Year Ago High Low

3.50% 3.75%APR 3.63% 3.875%APR 4.95% 2.88% 3.125%APR 3.00% 3.25% 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%

tion Saturday: “CanStruction,” at 9 a.m. at Park Place Mall, 5870 E. Broadway, features architect and engineering offices competiting to design and build sculptural installations using only canned food, which will then remain on display at the mall through Oct. 7. “KidStruction” Awards at noon at Sears Court in Park Place, honors middle school students who designed and built structures on a 12 inch-by-12 inch base using only business cards, toothpicks and glue using the theme “Celebrating Arizona’s Centennial.” A two-hour walking tour of Barrio Libre (Viejo) starts at 9:30 a.m. at Cushing Street Bar, 198 W. Cushing St., hosted by John Messina who will talk about the origins, style and typology of buildings in the neighborhood, one of the two oldest in Tucson. Information about events for the entire week are online at www.aiasouthernarizona.org .

Down payment help Up to $15,000 in down payment assistance to buy a home is available for residents who meet certain income and location criteria. Through the Pima Neighborhood Investment Partnership, a collaboration among Pima County, the City of Tucson and seven nonprofits, funding is available through Nov. 30. Individuals and families with up to 120 percent of the average Pima County household income may qualify. For a couple, that can be as high as $58,000. For a family of four, income is capped at $72,500. Buyers must contribute a minimum of $1,000 of their own funds. The eligible homes are generally South of 22nd Street. In 2010, Pima County received $22 million in federal stimulus funds to

After years of listings that often exceeded 300 homes in zip codes across the region, August’s residential data offered another good metric indicating the real estate market is holding steady. Inventory levels are 30 percent lower than they were a year ago and only three zip codes had 200 or more homes for sale. Gone, hopefully for good, are the days of more than 3-0-0. Here to stay, hopefully, are the days of under 2-0-0. With 3,564 listings in August, the most inventory was in zip code 85739 with 219 units, according to the Tucson Association of Realtors Multiple Listing Service. The neighborhood is along North Oracle Road from Catalina State Park to the junction of State Routes 77 and 79. Next was the Green Valley zip code 85614 with 209 units; followed by 202 houses in 85750 in the Sabino Canyon area. The Realtors reported three areas sold all their listings in August. Extra sales were highest in zip code 85706 where 32 homes sold in a zone of 25 listings. The area is near Tucson International Airport, around Drexel Road and Alvernon Way. In zip code 85714, the Midvale Park area along Drexel Road west of Interstate 19, eight homes were listed and nine sold. One extra home also sold in zip code 85741, the area from I-10 east to La Cholla Boulevard between Cortaro Farms Road and River Road. There, 53 homes sold with 52 listings. Due to timing issues, it is possible to sell more homes than are officially listed for sale.

Sales and leases • Old Pueblo Rentals LLC purchased the 11-unit Cameo Place Apartments, 1151 N. Sonoita Ave. for $515,000 from Baran Family Trust, represented by Kent Simpson and MaryLou Thompson, Tierra Antigua Realty Downtown. The buyer was represented by Andrew Ford, Coldwell Banker. • McDonald’s USA leased 29,000 square feet at 1795 W. Ajo Way from WPW Investments LLC, represented by Terry Dahlstrom, Volk Company Commercial Real Estate. McDonald’s demolished a former Blockbuster Video store at the site and is building a 3,500 square foot restaurant, to open in November. Brian Harpel, the Harpel Company, represented McDonald’s.

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

24 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Prop. 204 would let Legislature off hook It didn’t seem like it at the time, but one of the smarter things I did in my life was serve eight years — 1991-1994 and 1999-2002 — on the Catalina Foothills School District No. 16 school board. I met a lot of people doing wonderful things for those who will become our leaders. People who say things categorically about the decline of public education haven’t seen the work of the educators I’ve met who are challenging students in DAVID HATFIELD ways I suspect those saying those things couldn’t possibly fathom. In recent years Arizona educators, like many of the rest of us, have had to do more with less. And it’s not as if they had that much to begin with. I remain concerned about the state of education in Arizona. So why am I having so much trouble finding it within myself to support Proposition 204 on the Nov. 6 ballot? If passed, it would make permanent a temporary sales tax due to expire May 31, 2013. Arizona’s state sales tax rate would remain at 6.6 percent instead of dropping to 5.6 as it’s scheduled to do. But unlike the temporary tax, which directs money to fund education, Proposition 204, which is estimated to raise $1 billion in its first year, guarantees only $125 million of that would go to K-12 education for inflation adjustments. The largest chunk, $500 million, would go to helping schools meet their “assessment and accountability” requirements — something needed in these days when students spend so much time being tested. Except Proposition 204 uses the words “may use the monies,” which begs the question how else may the money be used? Another $150 million would go to funds for education accountability and improvement, education learning and accountability and for university scholarships, operations and infrastructure. And although the words accountability show up in the names of those funds, there is little accountability in how those monies would be spent. The final $220 million from Proposition 204 wouldn’t even go to education; $100 million would be spent on public transportation and roads, another $100 million would go to a family stability and self-sufficiency fund and $25 million would go to a children’s health insurance fund. The anti-tax crowd is right to point out that Arizona’s state sales tax is the second highest in the U.S. But they’re not right when they say school funding has increased over the last decade or when they cite a state Auditor General report that says just 55 cents of every tax dollar gets into the classroom. What they conveniently leave out is that the state has diverted money away from public education in recent years. And the Auditor General doesn’t consider jobs such as librarian or those directly responsible for curriculum delivery as “classroom” jobs, even though they can have as much to do with student performance as any teacher. I do agree with state Treasurer Doug Ducey who says Proposition 204 is bad public policy. At the same time though, what do we do when we have bad public policy makers at the state Capitol? That can’t be fixed by having voters pass a proposition that would let lawmakers off the hook on education so they can continue to squander the state’s money elsewhere.

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

EDITORIAL

Postal Service cuts sweetheart deal Sometime after the first of the year, the U.S. Postal Service is planning to shut down its Tucson mail sorting facility at 1501 S. Cherrybell Stravenue and begin trucking all mail 100 miles north to Phoenix where it will be sorted and then, if it’s to be delivered to a Tucson address, trucked back for delivery. Postal Service officials say they’ll be able to continue delivering mail just as they have in the past under this scenario for a few months before another cutback kicks in later in the year. Then, first-class mail deliveries will take a day longer in transit, though they say all mail should still be delivered within three days, just as it is now. Though the dates may be new information, most Tucsonans already know the basics of that story as the Postal Service struggles to stave off a projected $18 billion deficit by 2015. It’s hard to see how that will happen. When word first came out almost a year ago about the sorting facility shutdown, it was suggested that about 300 jobs would be on the line. That was later cut in half and is now said to be 147 jobs. But none of those jobs is being cut, all will be reassigned, says the Postal Service. Service industry firms don’t achieve savings cutting service without cutting employees. So would you like to know the latest idea from the U.S. Postal Service? This one is supposed to generate revenue. They want to deliever more mail you never asked for. Yes, more junk mail. In August, the Postal Regulatory Commission agreed to give discounts of up to 36 percent to Valassis Direct Mail. This is the first time the Postal Service has cut this kind of exclusionary deal with a single private entity at the expense of competitors in the same field. Other direct mail advertisers, who can’t have the same deal, will pay up to three times as much to send the same

advertisements. The newspaper industry is up in arms, because the Postal Service deal gives Valassis a government subsidy to undercut rates. (We’ll point out that Inside Tucson Business isn’t directly affected by the deal because we don’t currently have any advertisements of the type Valassis carries but that’s not to say the situation couldn’t change in the future.) This deal also hurts any business that uses direct mail and that includes small local retailers who can’t get the same deal from the Postal Service. Beyond that, the deal raises questions about the business acumen of those making decisions at the U.S. Postal Service. Consider that the Postal Service ran up losses totalling $5.2 billion for the quarter ended June 30. The three-year deal with Valassis is projected to bring in nearly $15 million. Yes, the losses for three months was billions, with a “b,” the hoped-for revenue for three years is millions, with an “m.” The Postal Service has previously granted volume discounts for mass mailings from companies including Capital One Services Inc., Bank One Corp., Discover Financial Services Inc., and Bank of America Corp. The guideline under which those agreements were made were that had help the Postal Service improve finances, enhance operations and not unreasonably harm the marketplace. That hasn’t turned out to be the case. As of 2006, the Postal Service was required to report the results of such deals. Ann Fisher, spokeswoman for the Postal Regulatory Commission, told the Associated Press that the eight volume discount agreements in effect from 2007 to 2011 lost $20.9 million. This is the kind of decision-making that cost Tucson it’s mail sorting facility. Where’s Congress?

InsideTucsonBusiness.com

SEPTEMBER 28, 2012

OPINION BUSINESS INK

It’s OK to lie, honest, the U.S. Supreme Court says so It’s official: the First Amendment that protects free speech now includes the right to lie. Fib. Deceive. Tell falsehoods. Honestly, the U.S. Supreme Court says it’s true. This summer, The Supremes ruled it is legal to lie about being a war hero. Their decision crushed the little-known Stolen Valor Act of 2006. The act made it a federal crime for a person to falsely claim, fake or lie about having received military honors. The case focused on Xavier Alvarez, a public official in Pomona, Calif. After winning election to a local water board, he boldly claimed to be a 25-year Marine and Congressional Medal of Honor recipient. Neither was true and he was the first person charged and convicted under the law. Alvarez pleaded guilty but appealed. Ultimately, the Supreme Court justices declared the act unconstitutional and simply put, said there is a broad, general First Amendment right to lie. The ruling opens the door to a new government entitlement program: Truth Fabrication. (To enroll, get in line behind the gamblers, golfers, fishermen, dieters, red-light runners, unfaithful spouses, Madison Avenue advertising executives, and Harvard University plagiarists.) If you accept the court’s logic, it’s not much of a stretch to see what’s coming. Fraud is now regarded as “free speech.”

Say it ain’t so. Look for Ponzi scheme swindler Bernie Madoff to petition the courts for a Get Out of Jail Free card. In Chicago, voter fraud will come out of the shadows as “freedom of ROGER YOHEM expression” and dominate pop culture across America. On Wall Street, bonuses for financial fraud will be written into the employment contracts of brokers. Protected “free speech” makes it OK to lie to get a home mortgage or to dupe a bank to borrow money. (In Tucson, that’s so yesterday.) To safeguard your credit, insist that MasterCard remove the cost of those four new iPhones from your account. Even though you bought them as Christmas presents, just lie and deny. No special conditions apply, not even having to cross your fingers behind your back. “Free speech” now protects fabricating a résumé or job application to advance your career. When challenged by the human resources director, just act incredibly indignant. Who is he or she to question your triple major in Rocket Science,

Bio-nuclear Genetics, and Euro-Economics at Idaho’s prestigious Moose Creek Community College? Based on the decree, does the First Amendment now give you the right to impersonate a mall cop and arrest city workers for alleged on-the-job improprieties? Does it grant your neighbor the privilege to pilfer your mail to commit identity theft? The High Court’s “no fraud, no foul” thinking also suggests that it is an unalienable right to lie about being a legal U.S. citizen and to vote without a photo ID. Even worse, will terrorists hide behind “freedom of expression” to someday blow up America’s elementary school busses because they hate the color yellow? And Lord knows how rampant welfare and Medicaid fraud already is. So now, are those frauds legit? Where will the abuse of free speech stop? As if this nation and community isn’t contentious and un-civil enough, brace yourself for an escalation of rhetoric on issues such as growth boundaries, the Rosemont Copper mine, NIMBYs, SB 1070, taxes, unemployment, Fast and Furious, and the assassination of a U.S. ambassador in the Middle East. Here’s a thought: If lying were against the law, politics would be illegal. Washing-

ton, D.C., would still be a swamp and Clint Eastwood wouldn’t be talking to a chair. Thanks to the Supremes, why believe anything you hear, read or see? Truth as a moral and ethical value has been forever weakened and tainted. Low standards have been given a free pass. Don’t think the federal ruling will affect you? How will you know what to believe? Clearly, the permission to lie will change how news is presented: KGUN 9 On Your Side… if you tell the truth. KOLD News 13 is Live, Local, Late Breaking with the latest high-tech equipment… except a lie detector. CNN: The Worldwide Leader in News… that we can’t verify. 104.1 The Truth with Jon Justice… calling out the liars. Fox News: Fair and balanced… bias. The New York Times: All the news that’s fit to print… from our political agenda. And at CBS News, let’s just say that Dan Rather abused the First Amendment long before the Supreme Court.

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

SPEAKING OUT

Whether you vote early or at the polls, vote! Ballots for the Nov. 6 general election will be mailed to early voters Oct. 11. The Pima County Recorder’s Office recommends the completed early ballots be mailed no later than Nov. 1. Procrastinators can drop them off at any polling location on Election Day. This is an important election. Voters will choose the President of the United States for the next four years, a new U.S. Senator, congressional representatives, state legislators, county officials, plus three of the five seats on the Arizona Corporation Commission. The ballot will include nine state propositions, plus a number of local issues including members of the Pima Community College governing board as well as several school board races. Within the city, voters will also be asked to approve selling up to $100,000 in bonds for road repairs. Voters have until Oct. 9 to register to vote in the November election. Anyone who has changed his or her address, political party, or name is required to re-register. You can do this online at www. servicearizona.com . Some libraries and government offices have voter registration forms for those who prefer to register in

person. County Recorder F. Ann Rodriguez says that typically just over half of Pima County voters vote early. What happens to those early ballots after they are mailed back to the CAROL WEST Recorder’s Office? Signatures are verified by a bipartisan team and the signed envelope is separated from the ballot. The ballot then goes to the Division of Elections where it is electronically tabulated. Political party representatives are notified and can come to monitor this process. Can a person learn whether or not a ballot has reached the Recorder’s Office? Yes. A voter can track the ballot from its arrival at the Recorder’s Office to signature verification and on to the turnover for tabulation with the Division of Elections. Any citizen can go to www.recorder. pima.gov and then to “ballot status.” The

voter can type in his or her name and birth date to see if the ballot has arrived. A person can continue to track the ballot from signature verification to its arrival at Elections for tabulation. If there is a problem with verification of the signature, the voter will be called, using the phone number the voter wrote on the ballot affidavit. A follow up letter will be sent if the signator is not reached by phone. When soldiers and others are working overseas, they can still vote. The ballots are sent electronically encrypted. Right now this cannot be done for all voters. Because so many people now vote early, the number of Pima County precincts has decreased from 288 from 417 in 2010. Arizonans going to the polls must show proof of citizenship in order to vote. Possible identification includes a valid Arizona driver’s license, tribal enrollment card with photo, state or local government ID card with photo, or any two of the following: Arizona vehicle registration, Indian census card, property tax statement, vehicle insurance card, or current utility statements from two different utilities. Following the 2010 census, Arizona’s

legislative and congressional districts were redrawn. New Pima County voter registration cards were mailed out in June. It is a good idea to check to be sure that a person wanting to vote has the updated voter registration card. It will reflect precinct, Board of Supervisors district, legislative district, and congressional district information. Those living in a city will also have ward information. If the registration card is out of date or lost, it is important to call the County Recorder’s office to ensure a new card is on file. The phone number is (520) 724-4330. Recorder staff can advise callers about this. The right to vote is precious. Early ballots have made it convenient to vote. However, the voter has some responsibility to follow through on being properly registered and to be aware of acceptable identification if choosing to vote at the polls.

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

26 SEPTEMBER 28, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Unfair tomato trade with Mexico threatens Southern Arizona jobs Greenhouse tomato growers across the United States, including EuroFresh Farms and others in Arizona, may be out of business soon and several thousand American jobs lost if an outdated tomato trade agreement between the U.S. and Mexico is not withdrawn. The 1996 agreement between the U.S. Department of Commerce and Mexican tomato growers was enacted to suspend an anti-dumping investigation into alleged predatory marketing practices. The agreement set a minimum “reference” price for tomatoes at 21 cents per pound. Unfortunately, minimal enforcement combined with Mexico’s lower labor costs and government subsidies have caused a massive increase in the volume of tomatoes exported to the U.S. over the past 16 years. When the agreement was enacted, field production was the main growing method in both countries. The greenhouse tomato business was virtually nonexistent in 1996. Greenhouse technology is considered a superior and sustainable growing method, resulting in year-round availability of high quality, safe and great tasting tomatoes. Investments in technology are significant. Combined with higher U.S. employee wages, strict regulations and safety standards, production costs are approximately 61 cents per pound or almost three

times higher than the current reference price. While the U.S. greenhouse growers can happily compete with Mexican imports on the basis of quality, FRANK VAN STRAALEN taste and food safety, it is appalling to see that many tomatoes are imported into the U.S. as hothouse or greenhouse, while in fact they are grown in facilities that are not remotely akin to what is considered a greenhouse in the rest of the world. Farms operated by EuroFresh and most of its U.S. competitors are high-tech, fully enclosed glass and steel structures with automated irrigation and climate control features. Produce is grown in a controlled, clean and worker-friendly environment. In contrast, the typical “protected agriculture” facility in Mexico consists of plastic tunnels or tarp providing little protection from disease, weather, pests or animals. To sell this produce as “greenhouse grown” is misleading at best and potentially a huge risk to public health. Ultimately, what is at stake is the ability to produce our own food in the U.S. rather

than rely on imports from elsewhere, over which we have little control in terms of food safety and ethical and environmentally responsible production methods. It is disheartening to see that so many politicians favor foreign producers and importers rather than support domestic food production, local farmers and U.S. jobs. Earlier this month, U.S. tomato growers, sellers, distributors and others met in Florida during the 37th Annual Joint Tomato Conference. They focused on the trade agreement and its hard-hitting repercussions. Reggie Brown, manager of the Florida Tomato Committee, told the Naples Daily News that U.S. tomato production will cease if the government does not step in right away. As U.S. tomato profits continue to decline, industry leaders, lawmakers and other supporters have asked the U.S. Department of Commerce to do away with the agreement. The department is expected to make a decision as early as January. Some lawmakers in Arizona have written letters in support of local growers, including state Sen. Gail Griffin, R-Hereford, who urged the Department of Commerce to protect U.S. growers by reestablishing fair trade. She stressed the urgency of the situation, as have many others. The issue is critical to Arizona because

several U.S. growers, such as EuroFresh Farms, pay taxes here and employ hundreds of Arizonans. Located in Willcox, EuroFresh Farms is one of the largest tomato greenhouse operations in the world. It contributes $209 million annually to Arizona’s economy and employs more than 1,100. With so many residents already unemployed and a weak state budget, cutting millions in taxes and adding thousands to the unemployment line will only hurt Arizona further. Other states, such as Florida, Texas and California with large tomato production facilities also face millions in lost taxes and thousands of lost jobs. EuroFresh Farms urges Southern Arizona residents to write to the U.S. Commerce Department in support of the domestic tomato industry and all those employed by U.S. growers in Arizona and across the country. Send letters of support to: The Honorable Rebecca Blank, Acting Secretary of Commerce, U.S. Department of Commerce, Office of the Secretary, 1401 Constitution Ave., NW, Washington, D.C. 20230 It’s time to once again level the playing field, and support U.S. tomato growers and the jobs they create.

Frank van Straalen is chief financial officer at EuroFresh Farms, Willcox.

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