Inside Tucson Business 10/05/2012

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Manufacturer to open new Tucson plant this year

Tucson residents voice their vision Imagine Greater Tucson unveils hoped-for future of region Page 7

Inside Tucson Business

Jittery economy jilts recovery Extreme uncertainty, consumer confidence too low to predict what happens next Page 8

SAHBA Home Show Oct. 5–7 Pools, spas, wines, builders, remodelers, pets,, DIY tips, crafts and booths galore Page e 30

PAGE 3

Anil Nanji calls his company a “turtle” compared to fastgrowing companies that are tracked in lists, but at the same time he says he can’t get his Tucson assembly and testing plant open fast enough.

Nanji is president of Integrated Technologies Group Inc., which has acquired a 25,000 square-foot facility at 3590 E. Columbia St. in Butterfield Business Center southeast of South Palo Verde Road and Ajo Way. He said he hopes to have it operational by the end of the year or shortly thereafter with 30 to 40 employees.

It will be the company’s fourth production facility, after one in its headquarters city, Culver City, Calif.; another in Huizhou, China, that was opened in 2002, and a third in Nogales, Sonora, that was opened in 2008. If the growth for the Tucson plant follows a similar trajectory as those others, Nanji said he anticipates it would have around 200 employees in five years.

Nanji described Integrated Technologies Group as a vertically integrated company that will use components manufactured at its other locations to assemble and test custom-made electrical machines such as motors, actuators and alternators for use in high-tech applications. He said the company also designs and produces custom-made machines which is one of the reasons he decided to open a plant in Tucson.

With the facility at Nogales currently operating at capacity, Nanji said he was looking to expand but at the same hearing concerns from some customers over intellectual property protections for items made outside the U.S. “I have such a great feeling about Tucson, it is such a welcoming place,” Nanji said by phone this week after returning from Tucson. Three people from the Culver City plant are already in Tucson and “others have asked to move there but we won’t let them,” he said, adding that most of the new hires will be done in Tucson.

Nanji, who is of Indian descent and born in Kenya, was educated and worked in England before arriving in the U.S. in 1981 when he acquired a small consumer magnet distributing firm with 12 employees. That firm grown to about 450 employees and is now evolving away from that original business into Integrated Technologies Group.

Nanji’s eagerness to get the Tucson plant opened was felt

by Tucson Regional Economic Opportunities (TREO) which made the announcement in time to coincide with the Arizona Daily Star’s larger Sunday circulation.

“I had nothing to do with that,” Nanji said. “In fact after I was interviewed I thought I would have to look for some story on the back page.” The announcement was front-page news in the Star.

2 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

OCTOBER 5, 2012

3

NEWS

Fight over tomato imports has combatants in Southern Arizona

TMC plans to open 32-bed hospital in Green Valley

Southern Arizona’s economy doesn’t often land at the center of discussions about agriculture and international policies, but a debate over imported tomatoes could have tremendous implications for two industries important to the state.

At issue is a lobbying campaign from growers of fresh tomatoes wanting to convince the U.S. Department of Commerce to scrap an agreement from the 1990s designed to prevent Mexican growers from undercutting prices in the U.S. The agreement covered fresh tomatoes grown for direct consumption as opposed to those that are used for canning or other processes.

“What we’ve seen happen in the past year or so is our price controls are lower than we’ve ever seen,” said Frank van Staalen, CFO of EuroFresh Farms, Willcox.

Van Straalen said domestic growers such as EuroFresh have seen their profit margins dwindle in recent years, and he thinks the reason is clear.

“It certainly seems that the imports from Mexico are responsible,” he said.

EuroFresh has joined with fresh tomato growers in Florida in an effort to rework or abandon the agreement, an endeavor that appears to have been a success. Last week, the Commerce Department set in motion a process that could result in ending the longstanding agreement.

Florida and California growers account for more than two-thirds of domestic fresh tomato production.

The situation has provoked a different reaction from produce importers in Nogales, who see protectionism at play.

“That’s essentially what they’re trying to do,” said Lance Jungmeyer, president of Fresh Produce Association of the Americas. “They resent that they can’t compete with the Mexican growers.”

The row dates to a 1996 pact, called the

CONTACT US

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

Patrick McNamara

By Patrick McNamara Inside Tucson Business

Kees Rodenburg, general manager at EuroFresh Farms in Wilcox, inspects rows of grape tomatoes.

suspension agreement, which quieted a dispute between Mexican and U.S. producers.

At the time, growers in Florida and other fresh-tomato producing states were pursuing legal action against growers in Mexico, accusing them of dumping their product on the U.S. at prices below the cost of production.

The suspension agreement resulted in the setting of a floor on the price of imported Mexican fresh tomatoes. The current price is

21 cents per pound.

Van Straalen said that it costs EuroFresh at least 61 cents per pound to grow tomatoes inside one of its climate-controlled greenhouses in Arizona.

EuroFresh was started in 1992 by Johan van den Berg and Wil van Heyningen, who brought indoor growing technologies they had honed in the Netherlands.

SEE TOMATOES PAGE 7

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Tucson Medical Center is exploring the development and operation of a 32-bed acute-care hospital in Green Valley, one that could be expanded and will have nearby medical offices.

TMC HealthCare, through its subsidiary, Saguaro Medical Holdings LLC, announced Sept. 27 it has entered into a Memorandum of Understanding with Scottsdale-based McDowell Enterprises LLC to explore the development and operation of the Green Valley Medical Center.

The hospital is expected to open in the first quarter 2014 and will provide emergency inpatient care as well as outpatient medical care. The facility will include a full-service emergency department; cardiac catheterization lab; four operating rooms; two minor procedure rooms; on-site radiological imaging labs; 26 inpatient private rooms; a six-bed intensive care unit; and medical office space for primary and specialty physicians.

“We are pleased to be able to continue the due diligence process and obtain input from key stakeholders,” said Judy Rich, president and CEO of TMC HealthCare. “Green Valley has long been identified as medically underserved, with emergency services being nearly 30 miles away. TMC is committed to serving the residents of Green Valley with the same patient-focused health care that we are known for throughout the region.”

McDowell Enterprises CEO Jim McDowell said “We are thrilled to be in this process with TMC. This is one of those rare development opportunities that can truly improve the quality of life for the residents of Green Valley.”

Gas prices start their post-Labor Day drop Gas prices have started to fall once again with the Tucson price for regular this week dropping to an average $3.52½ per gallon, from $3.57 a gallon a week ago, according to AAA Arizona’s weekly Fuel Gauge survey.

AAA said it’s typical for gas prices to start dropping after Labor Day and the trend usually lasts until the holidays.

Tucson continues to have the lowest average prices in Arizona. The statewide average this week was $3.68 per gallon, down from $3.71 per gallon a week ago. The national average is $3.78 per gallon, down from $3.80½.

EDITION INDEX Public Notices 6 Inside Media 10 Lists 12-13 Profile 15 Meals and Entertainment 16 Arts and Culture 16 Calendar 20

People in Action 23 Briefs 26 Finance 29 Real Estate & Construction 30-31 Biz Buzz 32 Editorial 32 Classifieds 35

4 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

NEWS

What’s coolest about airport project: Solar or covered parking?

CenturyLink workers authorize possible strike Employees of CenturyLink in Arizona and 12 other states have authorized their union leaders to call a strike if they cannot reach a contract agreement.

The company’s contract with the Communication Workers of America (CWA) expires at midnight Saturday. More than 88 percent of its 13,000 members working for CenturyLink voted to authorize the strike if necessary. It would involve employees who are customer service agents, network technicians and work in Internet support.

CWA officials say the sticking points in negotations have been over the company’s proposal to raise health insurance premiums and the union wanting to bring more jobs back to the U.S. The CWA said negotiations are continuing.

The DREAM Act, federal legislation that would grant a pathway to legal status to about 90,000 undocumented youths in Arizona, would add $18.4 billion to the state’s economy and create 84,000 new jobs by 2030, according to a new study released Monday by the Center for American Progress, a research and educational insitute in Washington, D.C. The Development, Relief, and Education for Alien Minors Dream Act would provide a way to legal status for 2.1 million undocumented youth living in the U.S. According to the report, the act would add $329 billion to the national economy by 2030, support the creation of 1.4 million new jobs and generate more than $10 billion in increased revenue for the federal government.

UA veterinary program gets Regents’ approval The Arizona Board of Regents approved the University of Arizona’s request for $3 million to study the possibility of starting a veterinary program.

The request was part of a $81.9 million budget funding request for the 2013-2014 fiscal year for the state’s three universities.

The request now goes to the governor for possible inclusion in her budget request in January and ultimately will be considered by the Legislature.

Image courtesy Tucson International Airport

DREAM Act would add $18.4B to Arizona economy

This rendering shows what the Tucson International Airport’s solar project would look like.

By David Hatfield Inside Tucson Business With Tucson averaging more than 360 days of sun a year, it stands to reason that if solar energy were to be viable anywhere, it would be here. But what may be the coolest part— both in terms of temperature and hipness — about Tucson International Airport’s plans to build a new solar array is that it will provide a shady environment to park a car.

That last bit wasn’t part of the criteria the airport used to win a $5.7 million grant from the Federal Aviation Administration (FAA) that will be used to help design and construct the first phase of the project, but Jordan Feld, director of planning for the Tucson Airport Authority, won’t deny it’s a benefit.

“I’d like to think shade is part of sustainability,” Feld said in an interview.

“The average user should have two big experiential take-aways from this. One, is the iconic massive solar canopy and the other is ‘wow, my car sure is cooler under it’.”

One indication that the excitement isn’t solely on the solar aspects of the project came to light when some members of the airport authority’s board of directors raised questions about the project before approving it as part of

the fiscal year budget last month.

Board member Mike Hannley expressed concerned about the estimated energy payback of five to 11 years and asked whether that included maintenance and repair costs that would lengthen that time. Hannley, who is president and CEO of the Bank of Tucson, said he has found that return on investment estimates for solar aren’t real.

He said he also had issues with estimate changes that resulted in the airport authority having to shoulder more of the costs.

That payback estimate is only for the airport authority’s portion of the entire project, which could total up to $1.4 million. In addition to the grant from the FAA, the Arizona Department of Transportation is contributing $280,000 to the first phase of what could take up to three phases to complete.

If this were only a solar project, Feld said there are “less visiually exciting ways” the airport could have constructed a solar array.

But this project will be front and center and something of a showpiece for Tucson.

Integral to the solar panels, the project includes vegetated “green walls” with live plants and vines to help create a cooling microclimate effect within the parking lot, Feld said.

The first phase of the project should get underway next Spring, covering five acres of the daily parking lot in front of the ter-

minal building. Depending on how future grants come in, Feld said the remainder of the 12-acre parking lot will either be finished in one or two phases and cover all of the airport-run daily and hourly lots. He said he hoped the entire project could be finished in three years.

From 20 to 70 workers will be employed during the construction of the project, according to airport authority.

The first phase will generate about 1 megawatt of power annually, which will feed into the airport’s central utility plant and serve the terminal complex. Once complete, the entire project is expected to produce about 2.5 megawatts.

The federal grant is part of a new program that provides funding for airport projects that promote energy efficiency under the FAA Modernization and Reform Act of 2012.

One stipulation of the FAA grant is that the resulting improvement cannot directly be used to enhance revenues.

So whether you’re looking at the airport’s new solar parking canopies from a sustainability point of view or that you’ll be able to park your car in shade, it won’t cause parking lot rates to change.

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

InsideTucsonBusiness.com

OCTOBER 5, 2012

5

NEWS

Boost in funding spurs national tourism campaign for Arizona

This Week’s

Good News Ballpark fiesta One of these days it’s supposed to start cooling down but in the meantime we’ve still got baseball weather here for the second annual Vamos a Tucson Mexican Baseball Fiesta through Sunday (Oct. 7) at Kino Stadium, 2500 E. Ajo Way, and are they planning to party. It is a fiesta.

Mexico’s Pacific Coast League has sent teams from Hermosillo, Ciudad Obregon, Mazatlan and Culiacan to play a series of exhibition double-headers.

Buy tickets at the stadium’s box office or call (520) 434-1367. Info is also online at www.tucsonpadres.com .

BIZ FACTS

Arizona Office of Tourism budgets by fiscal year: • 2008: $26.7 million • 2009: $26.6 million • 2010: $27.4 million • 2011: $11.8 million • 2012: $12.5 million • 2012: $20.2 million

The Tucson

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

Tara Alatorre, Cronkite News Service

Election heats up

By Sarah Pringle Cronkite News Service PHOENIX — Those walking along Chicago’s chilly streets in the coming months will see a saguaro cactus, the Grand Canyon and Sedona’s red rocks on buildings and billboards.

With words like “monumental,” “unexpected” and “timeless,” the ads will invite people to escape to Arizona.

“The idea is to get your attention with the iconic images,” said Sherry Henry, director of the Arizona Office of Tourism.

It’s part of a national campaign made possible by a $7 million appropriation from the state’s general fund.

Beginning in November and running through March, the ads also will appear in nationwide publications such as Travel + Leisure and Condé Nast Traveler, as well as in other print, outdoor and online media.

Arizona will be featured on the homepage of the Orbitz website.

The campaign includes a special emphasis on the target markets of Chicago, Minneapolis and Denver.

“We haven’t been able to do that in almost three years,” Henry said. “And it’s just like any other business. If Coca-Cola doesn’t advertise, who’s going to get market share?

Pepsi-Cola.”

The office had been funded largely by a share of hotel, restaurant and amusement taxes collected around the state, as well as a share of tribal gaming proceeds and a hotel and car rental tax in Maricopa County intended for marketing that region.

But in 2010, state lawmakers addressing the budget deficit removed the Tourism Funding Formula that provided the largest share of the office’s budget. The formula accounted for $14.4 million of the office’s $27.4 million budget in fiscal 2010.

Gov. Jan Brewer pushed for the $7 million general fund appropriation in her fiscal 2013 budget to help boost tourism. That brought the office’s budget to $20.2 million for the current fiscal year.

Henry said investing in tourism pays off.

“The exposure generates additional visitors, visitors generate visitor spending, visitor spending generates taxes,” she said. “The travel dollar trickles all the way down so that everybody in the state of Arizona is basically affected.”

The 37.6 million overnight visitors to Arizona in 2011 spent $18.3 billion, generating approximately $2.7 billion in local, state and federal tax revenues, according to the Office of Tourism.

Dennis Hoffman, a professor and director of the L. William Seidman Research Institute at Arizona State University’s W.P.

A $7 million boost in state funding for the Arizona Office of Tourism has prompted a marketing effort to lure people in Chicago, Minneapolis and Denver, as well as areas of China and Brazil, to sites such as the Grand Canyon.

Carey School of Business, said that national marketing is valuable because the tourism industry captures billions in spending for the state.

“Investments in the Arizona Office of Tourism clearly pay dividends,” Hoffmann said. “The question is should we be doing even more?”

Jim Rounds, senior vice president and senior economist with Elliott D. Pollack and Co., said Arizona may have lost some marketing momentum when the state funding dried up and that it will take some time for the new effort to gain traction.

He said the Office of Tourism and various tourism entities, including chambers of commerce and economic development organizations, will have to fight to maintain or increase state funding.

“It takes everybody on the same page to make this work,” Rounds said. “What they need to do with lawmakers is provide a more cohesive message and explain more clearly why this benefits the state as a whole.”

Early ballots for the Nov. 6 election should start arriving in voters’ mailboxes next week and with data showing that more voters are making their decisions earlier, so expect a flurry of activity next week.

Among the more intriguing possibilities, Insider hears that a couple of long-time Republican officer holders who won’t be seeking re-election to their respective offices are toying with the idea of publicly endorsing Democratic candidates.

In one case, a local race, Insider is being told it’s pretty much a done deal and just a matter of timing of when to make the announcement.

In the other case, the office holder’s Republican roots are deep except for some particular animosity toward a particular candidate.

Hot housing Research shows that owning a house no longer holds the allure for some young, upwardly mobile professionals but that doesn’t mean they’re willing to give up too many amenities.

Proof of that may be the HSL Properties’ 304unit luxury apartment complex that just opened in July and is already fully occupied. And that was without any special offers.

Amenities at the $32 million Encantada at Riverside Crossing, 1925 W. River Road, include 69,000 gallon resort-style pool and spa, a 27-seat, stadium-style THX certified theater, a professional fitness center and Starbucks coffee bar.

With that success under its belt, HSL Properties has started construction on a $29 million, 272-unit complex called Encantada at Dove Mountain in Marana and next year will break ground on a $30 million, 288-unit Encantada at Steam Pump Ranch in Oro Valley.

What’s good news is that each complex employs close to 300 workers during construction.

6 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES Chapter 11 Business reorganization Cristiani LLC, 208 E. Prince Road. Principal: John A. Cristiani, president. Assets: $1,512,500.00. Liabilities: $1,229.403.00. Largest creditor(s): Ryan Salvador Trust, Elk Grove, Calif., $1,194,900.00. Case No. 1221464 filed Sept. 27. Law firm: Marshall Fealk Rim Restaurants of Arizona LLC, 5870 E. Broadway, Suite 524. Principal: Paul Kakers, member. Estimated assets: More than $100,000 to $1 million. Estimated liabilities: More than $100,000 to $1 million. Largest creditor(s): Schedule not filed. Case No. 12-21605 filed Sept. 28. Law firm: Thompson Krone Gibson

FORECLOSURE NOTICES Integrity Development Inc. Lot 163, Blanco Estates, 17765 W. TricoMarana Road, Marana 85633 Tax parcel: 208-11-16607 Original Principal: $20,000.00 Beneficiary: David Schiessel PC Profit Sharing Plan Auction time and date: 10 a.m. Dec. 18, 2012 Trustee: David Schiessel, 21 E. Speedway Mango Investments LLC 2412-2420 N. Campbell Ave. 85719 Tax parcel: 112-06-28002 Original Principal: $53,500.00 Beneficiary: US Bank, San Diego Auction time and date: 11:30 a.m. Dec. 27, 2012 Trustee: Robert W. Saxton, SBS Trust Deed Network, 31194 La Baya Drive #106, Westlake Village, Calif.

Mango Investments LLC 2412-2420 N. Campbell Ave. 85719 Tax parcel: 112-06-28002 Original Principal: $345,000.00 decreased to $292,500.00 Beneficiary: US Bank, San Diego Auction time and date: 11:30 a.m. Dec. 27, 2012 Trustee: Robert W. Saxton, SBS Trust Deed Network, 31194 La Baya Drive #106, Westlake Village, Calif.

LIENS Federal tax liens Planet Hair Care Inc., 8327 N. Rose Marie Lane.

Amount owed: $5,417.68.

M&S Green Valley Enterprises LLC and James Estes, PO Box 1403, Sahuarita 85629. Amount owed: $1,058.29.

Western America Leasing LLC, 4180 E. Illinois St. Amount owed: $29,395.91.

F&J Restaurants LLC and Jeffrey Fuld, PO Box 262, 85702. Amount owed: $19,949.59.

MBD Tucson Distributors LLC and Michael Duran, 7006 W. Dupont Way. Amount owed: $14,018.87.

AutoWorld of Tucson Inc., 2411 W. Wetmore Road.

Amount owed: $11,292.69.

Physicians Management Strategies Inc., 5445 N. Kolb Road, Suite 141. Amounts owed: $33,802.63 and $7,972.05.

MSDX Multiple Sclerosis Diagnostics LLC and Allan J. Conger, 8641 S. Long Bar Ranch Place, Vail. Amount owed: $31,207.70.

Ron’s Maintenance and Darlene Jones, PO Box 90238, 85752. Amount owed: $5,073.73.

A Plus Office Services Inc., PO Box 425, Vail 85641. Amount owed: $3,791.81.

Fleur De Lis Institute Inc., 1133 S. Swan Road. Amount owed: $12,676.72.

Creative Iron Works LLC and Gabriel Puente, 1241 S. San Jacinto Drive. Amount owed: $1,923.91.

Kore Press Inc., PO Box 42315, 85733.

Amount owed: $14,761.26.

Maria’s Cafe and Manuel J. Canez and Joann A. Canez, 3530 S. Sixth Ave. Amount owed: $3,641.62.

IRI Sabino Springs Golf Course LLC, 9777 E. Sabino Greens Drive. Amount owed: $31,371.51.

Asia Injury Prevention Foundation Inc., 5055 E. Broadway, Suite A200. Amount owed: $30,500.00.

Nunley Transport LLC and Doby L. Nunley, 9420 E. Golf Links Road. Amount owed: $4,273.37.

Golden Dragon Restaurant and Nu Huynh, 6433 N. Oracle Road. Amount owed: $13,155.08.

Report: Money should drive whether state sells land for Picacho rail yard

By Alan M. Petrillo Inside Tucson Business It all comes down to the matter of money — at least as much money as Union Pacific Railroad might be willing to pay for state trust land it wants for a rail-switching yard near Picacho Peak.

That’s the assessment of a report consultants Gruen Gruen + Associates submitted to the State Land Department, recommending that if the department chooses to auction the 900 acres of state trust land the railroad has requested for the rail yard, it should value the land to reflect the costs of developing the switching yard, including costs of mitigation for an impact zone around the site and have Union Pacific provide infrastructure improvements to negate reduced values on adjacent state trust land holdings.

The land sought by the railroad — about 6 miles long and a mile wide — would accommodate a switching yard northeast of Union Pacific’s current right of way and west of Kodial Road, across Interstate 10 from the Rooster Cogburn Ostrich Ranch in Picacho, and might contain up to 74 tracks at its widest point.

Vanessa Hickman, deputy state land commissioner, said the purpose of the Gruen Gruen report was “to review the existing reports produced by consultants for Union Pacific and use them as a baseline for discussions with UP and Pinal County on proceeding with the project.”

She noted other state trust land adjacent to the property being sought by Union Pacific could be negatively affected by a sale of the 900 acres, and if that were the case, some form of mitigation would have to be considered.

“The report shows the possibility of industrial development around the proposed UP switching yard,” Hickman said, “perhaps in the form of a large industrial park.”

But it also shows that such development is not likely in the immediate fu-

ture, she added, due to all the other land in Pinal County that’s more closely located to existing development.

“If we were to put the land up for auction, we would make sure to get an economic return for the trust land and also the infrastructure necessary to serve that land and other adjacent state trust lands impacted by the sale,” Hickman said.

The Gruen Gruen report identified an impact zone around the 900 acres as “an area within one-half to a mile of the proposed Classification Yard (switching yard) that will experience negative environmental, property value and other impacts.”

Hickman said because the State Land Department owns all the land surround-

in response to an interview request.

Pinal County Supervisor David Snider said the county has been an active participant in discussions about the switching yard, and if the land sale is approved, the yard’s construction would be done under Pinal County regulations.

“We have a site plan review process that deals with elements of domestic water, waste water, drainage, flood and storm water issues, and transportation issues,” Snider said. “We’ve talked with both sides and helped them evaluate some of those elements and what might be required if the sale is approved.”

Snider noted the Gruen Gruen report bases some of its recommendations on State Land Department assumptions that the best and highest use for state land is for residential subdivisions.

“I personally don’t share that as an absolute,” Snider said. “Employment is at least as critical and as high a beneficial use.”

On the issue of mitigating the effect of a lowered value of adjacent state trust land, Snider said he wasn’t aware if that was common practice for the State Land Department, and added, “Usually they attempt to work with a prospective purchaser to plan benefits for adjacent parcels to add value to them.”

Hickman noted now that the State Land Department has the Gruen Gruen report in hand, it can sit down with Union Pacific and Pinal County to determine the allocation of costs for the necessary infrastructure around the land and determine who would pay for the costs of building that infrastructure.

“Joint meetings with UP, Pinal County and the State Land Department are likely to occur early in October with all parties at the table,” Hickman said. “But we do not have a timetable set for making a decision on auctioning the property.”

Snider said there’s a great deal of support for the switching yard project from Pinal County government and private entities within county boundaries.

“If we are invited by the State Land Department to be part of discussions, we’ll certainly participate,” he said.

The land sought by the railroad — about 6 miles long and a mile wide — would accommodate a switching yard northeast of Union Pacific’s

current right of way and west of Kodial Road, across Interstate 10 from the Rooster Cogburn

Ostrich Ranch in Picacho, and might contain up to 74 tracks at its widest point.

ing the parcel being sought by Union Pacific, “the cost of the infrastructure for that land would be assessed to the land when we go to sell it for the future.”

To mitigate that eventuality, she noted if the 900 acres goes up for auction, the cost of freeway interchanges, drainage, access to other state trust land parcels, internal transportation needs, water and wastewater considerations should be considered in the purchase price.

The State Trust Department manages 1.2 million acres of trust land in Pinal County, where the proposed switching yard would be located.

Aaron Hunt, director of corporate relations and media for Union Pacific, said the railroad is in the process of reviewing the Gruen Gruen report.

“We plan to continue to work closely with the State Land Department to purchase the property, but there is no timeline for that process,” he wrote in an email

InsideTucsonBusiness.com

OCTOBER 5, 2012

7

NEWS

Imagine Greater Tucson offers vision of future it says residents want BIZ FACTS

By Patrick McNamara Inside Tucson Business

700 N. Stone Ave P.O. Box 57719 Tucson 85732-7719 www.imaginegreatertucson.org (520) 209-2448

Gordon Bates

After more than two years of meetings, discussions and workshops, Imagine Greater Tucson has completed its vision for the future of the Tucson region.

At a community event Sept. 28 attended by more than 400 people, the group unveiled the vision it said was created with participation from thousands of residents and laying out what they said they want for the future. Those include better schools, a stronger economy, better transportation infrastructure and protection of the natural environment.

“We want to build something that our 20-something generation wants to stay for, and right now they’re not,” said Mike Holmes, executive director of Imagine Greater Tucson. The group is a non-profit organization that was established to gauge what residents want for the future of the region.

The vision includes more walkable neighborhoods, more bicycle thoroughfares, higher density development in urban areas and in general, less sprawl.

In short, the Imagine Greater Tucson vision includes many of the principles of New Urbanism, an urban design movement begun in the 1980s that sought to create more center-based communities, drawing on an era before the rise of automobiles.

“I think that was more by coincidence than design,” Holmes said, adding that the purpose of the Imagine Greater Tucson process has been to gather and compile the comments of residents in an effort to codify the vision.

If the information they gathered had shown a desire to live in “five-acre ranchettes,” as Holmes said, the vision would have

Imagine Greater Tucson

More than 400 people showed up at the Unisource Energy Services building downtown for the unveiling of the Imagine Great Tucson vision.

reflected that.

He acknowledged the trend to New Urbanism is happening elsewhere. Places including Memphis, Tenn., Miami, Fla., and San Antonio, Texas, have elements of their planning codes that incorporate principles of new urbanism.

The Imagine Great Tucson plan shows a desire to change the current growth trend that for decades has pushed development further into the rural areas in favor of a city with more public transit and several regional centers.

“The Preferred Future Scenario is nearly four times more compact than the trend, and it contains a much greater variety and mixing of housing types and land uses,” according to the vision document.

Significant changes to the current growth trends also include clustering residential development closer to employment and retail centers to build that greater density and min-

imize the encroachment into undeveloped areas.

For longtime residents, none of this should come as a surprise as growth, transportation and the environment are issues the region has grappled with for decades.

“There’s probably 30 similar plans sitting in the planning offices that say the exact same thing,” Holmes said.

But he differentiates Imagine Greater Tucson’s vision from those because of the broadbased community support the organization sought throughout its process. Past efforts were largely top-down approaches that governments created, he said.

“We represent what the people have told us,” Holmes said.

While having a vision for the region is fine, fostering changes to the growth pattern almost certainly will need the force of law behind them.

sion agreement have concerns the move would clear the way for domestic growers to pursue anti-dumping lawsuits again.

“What we have been trying to avoid all along is what the Florida growers say they intend to do,” Jungmeyer said.

Another problem Jungmeyer foresees is the imposition of tariffs on Mexican tomatoes.

That could create a situation where importers have to pay excessive amounts of money upfront to cover tariff costs with no guarantee of recovering their money.

In addition, he said many jobs in Arizona are at stake.

The Fresh Produce Association of the Americas represents about 110 produce importers in the state.

Fresh tomato imports through Nogales account for more than $816 million per year. The total amount of Mexican produce to cross the border in Nogales tops more than $2.5 billion.

“If you chopped a third off of that, you could see the economic impacts,” Jungmeyer said, referring to tomato imports.

Another potential issue with cracking down on the perception of Mexican dumping on the U.S. market is the reaction from Mexico.

“That scares the daylights out of us,” Jungmeyer said.

There has been speculation that an all-out trade war could ensue if the U.S. allows tomato growers to push forward with lawsuits or slapped tariffs on Mexican imports.

Mexico targeted U.S. imports like potatoes, pork and toilet paper with tariffs in 2009 during a dispute over allowing Mexican truck into the United States. That battle was estimated to cost U.S. producers billions of dollars in lost business.

Van Straalen said he’s not gunning for a fight, he just wants to have a level playing field.

“I’m not afraid to compete head-to-head with anyone in the world,” he said. “But we don’t think there’s fair competition.”

Imagine Greater Tucson agrees that working with regional governments will be important and Holmes said the organization has worked with and included government planners and other officials throughout the process.

In working with regional leaders, the organization early on asked governments to postpone updating their general plans until the Imagine Greater Tucson vision was completed. All but Marana agreed to do so, Holmes said.

State law requires municipalities to have general plans that show land use and other growth-related polices in the long term.

The group has been present during the meetings leading up to the City of Tucson’s upcoming general plan workshops, which involve community participation and input.

Holmes said, however, the group has no authority over what regional governments decide or whether they chose to incorporate elements of the Imagine Greater Tucson vision into their planning codes.

“What they do with it, I don’t know, we’ll just have to see,” he said.

The group has been the subject of some critical murmurings throughout the process, with some calling them anti-growth and others pro-development.

Holmes said he sees it as good sign that both sides have criticized the group and noted that the anti-growth advocates largely abandoned the organization in the early stages.

“From our standpoint, arguing about growth or no growth is like arguing over whether we’ll have a monsoon or not,” he said, “it’s coming.”

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

Since then, EuroFresh has grown into a large-scale commercial producer with more than 300 acres under glass.

It produces more than 150 million pounds of tomatoes annually and employs a workforce of more than 1,200 people.

In recent years, EuroFresh has expanded into growing varieties of cucumbers and sells its products throughout North America.

Indoor-grown tomatoes make up more than half of the fresh tomato market in the United States.

Van Straalen said that in addition to costs, one of the issues with Mexican imports has to do with labeling.

“The majority of the product (labeled as hot-house tomatoes) is at best grown in a plastic tunnel without heating,” he said.

There is no regulatory definition of a greenhouse- or hot-house-grown tomato. That allows products grown using minimal technology to be labeled as greenhouse or hot-house, van Straalen said.

Jungmeyer said he and others in the produce industry who want to keep the suspen-

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

Patrick McNamara

TOMATOES CONTINUED FROM PAGE 3

EuroFresh Farms has more than 300 acres of enclosed growing facilities like this greenhouse in Wilcox.

8 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

Jittery, uncertain economy keeps consumers in check

By Roger Yohem Inside Tucson Business Economists say about 70 percent of the nation’s gross domestic product (GDP) is driven by consumer spending. When consumers feel confident about their jobs, income and the economy, GDP grows.

In Southern Arizona, “local GDP” is being held back by uncertainty. Factors that affect consumer confidence include high unemployment, stagnant wages, a concentration of government-dependent jobs and property taxes.

Add to those national concerns over rising prices, healthcare reform, the Nov. 6 election and the “fiscal cliff ” forecast to happen if Congress doesn’t act before the end of the year.

Globally, the Euro-crisis and turmoil in the Middle East also are issues that will impact the U.S. economy.

“There is a lot of fear out there, fear that the other shoe is going to drop. Consumers just don’t have a lot of confidence to move forward. Businesses are nervous about making investments. That’s what’s slowing the economic recovery,” said George “Hank” Amos, president of Tucson Realty & Trust.

Amos, National Bank of Arizona regional president David Lyons, and local housing analyst John Strobeck were panelists at the annual Future Economic Outlook for Southern Arizona put on Sept. 28 by the Northwest YMCA. According to the Congressional Budget Office, the fiscal cliff is a $560 billion mix of tax hikes and federal spending cuts due to go into effect Jan. 1. If unresolved, the economy would immediately contract and “probably” cause a recession next year.

Roger Yohem

David Lyons, National Bank of Arizona president, speaks at the annual Future Economic Outlook for Southern Arizona, sponsored by the Northwest YMCA.

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Lyons characterized the fiscal cliff as one of the “toughest headwinds” facing the region.

“It’s a very precarious situation. Everybody, both sides of the aisle, are nervous about what’s coming after the election,” he said. “The uncertainty going forward makes everybody nervous. Consumer confidence is very important, it drives GDP.” The weak economy has changed the way consumers and businesses put excess cash to work. Instead of hiring people to expand, businesses are retiring debt that was incurred over the past few years. Consumers are doing the same.

“Banks are lending, flush with cash.

That’s one reason why deposit rates are so low,” said Lyons. “Since people are not growing their businesses, loan demand has been off. Not a lot of debt is being created.”

In new home construction, Strobeck said 2012 will endup as a “turnaround” year. Over the past six months, the market has posted gains in almost every metric. Prices of new and resale homes are higher. Existing home inventory is stable while new home permits are rising.

“Foreclosures drove our market the last few years, often as high as 900 new notices a month. Today, much of the distressed product has been cleared out,” he said.

“New construction is better because banks are taking too long to process short sales.

They’re losing sales dragging it out. Buyers won’t wait anymore so they’re back in the new home market.”

The panel was optimistic about the Tucson region’s economic outlook. Clearly, a recovery is taking place albeit at a very slow pace. This year will be better than 2011, but no one would predict with confidence what happens come January.

“That answer will come only with some economic certainty and clear direction,” Lyons said.

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

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INSIDE TUCSON BUSINESS

NASA/ISS

ARIZONA Science & Astronomy EXPO

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November 10-11, 2012 Tucson Convention Center Tucson, AZ 9 231/."432 9 NASA exhibits 9 /1,% 1&./6&% 20&"+&12 9 231/. omy products from around the world 9 4. ".% 2$*&.$& for all ages!

Expo Admission and Hours: Sat., Nov. 10, 8:30 AM to 6 PM: $10 — access to all exhibits and speakers

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Be sure to check our website for the latest information: www.asaexpo.com Connect with us on Facebook: www.facebook.com/groups/ASAExpo/ Photo © Wally Pacholka AstroPics.com

To register for a booth contact Alan Traino: a.traino@luntsolarsystems.com SPONSORED BY:

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Nielsen: Tucson TV market shrinks but still at No. 70

By David Hatfield Inside Tucson Business The new TV season is underway. Aside from premiering new shows at this time of the year, the ratings company Nielsen takes the opportunity to re-adjust its market-bymarket data and rankings.

For 2012-2013 season, the Tucson TV market remains unchanged at No. 70, though Nielsen says the number of TV households is down 0.8 percent to 438,440, from 442,020 for the 2011-2012 season.

Tucson wasn’t alone in losing households: 163 of the nation’s 210 TV markets lost households and the total for the nation was down 0.4 percent, or 475,620, to 114,173,690. Six of the nation’s largest TV markets — New York, Chicago, Philadelphia, San Francisco, Boston and Washington, D.C. — also lost TV households.

Nielsen said the latest estimates are the first to reflect demographic details such as age, sex and ethnicity from the 2010 Census.

“Accordingly, some of the year-to-year changes reflect adjustments rather than true one-year population changes,” the ratings company said.

But Nielsen said the drop also reflects “a continued technological shift where increased viewing options — from over the top services to streaming devices — have driven a pattern of some change in consumer behavior.”

Over the top viewing refers to people viewing video via streaming on services such as Netflix and Hulu, as well as on mobile devices and video game consoles.

Among the markets that did not lose households this year was Phoenix, which gained 710 TV households for a total of 1,812,040. It remained ranked market No. 13.

The Tucson designated market area is made up of Pima, Cochise and Santa Cruz counties. The Phoenix market is made up of Maricopa, Pinal, Coconino, Navajo, Yavapai, Gila, Graham, Greenlee and a portion of Apache counties.

Among markets that lost significant households — enough to fall in the rankings — were Palm Springs, down three to No. 148 and Albuquerque, down two No. 47.

Truth changes Lots of changes at the Truth KQTH 104.1FM that this week. Most notably, the departure of the nationally syndicated Michael Savage talk show, after the host won an arbitration ruling that allowed him out of contract with his national distributor.

Under the headline “Free at Last,” Savage posted a notice on his website saying his show “will not be heard on the radio for

some time.” This week, the syndicator, Talk Radio Network, moved another host, Jerry Doyle, into the time period formerly occupied by Savage.

For its part, the Truth a month ago had made some program shifts that resulted in removing Savage from his live broadcast to a later time slot to make room for local host James T. Harris, whose show was moved to the 3-6 p.m. “afternoon drive” slot.

Ryan McCredden, program director at the Truth, said the move was made because Harris’ program has continued to grow in popularity and “this now gives us a local host in our two most important time periods, Jon Justice in the mornings and James T. Harris in afternoons.”

One other change, since Sept. 10 Justice’s show is now also live on TV. Two hours of his morning show, from 7-9 a.m., are airing on TV station KWBA 58/cable 8, which is also part of the local Journal Broadcast Group of stations.

“For those of us who see Jon work every day — his animation and his energy — it seemed like a natural (to add TV),” McCredden said. “And I’ve got to tell you it has exceeded my expectations. The reactions we’re getting are amazing.”

In the meantime, what’s to become of Savage remains an unknown. In an online show this week, he suggested he may want to go up against and challenge the big dog of conservative talk radio, Rush Limbaugh.

For his part, McCredden wasn’t so sure, He said the Truth will wait to see what transpires but whether Savage returns to the station depends on numerous factors including the time period and whether he still has the “passion and fire” that has been missing the past two years since he got into his legal battle with Talk Radio Network.

All Michael Jackson Elsewhere on the radio dial, after 10 days off the air KWFM 1330-AM resumed broadcasting again Sunday (Sept. 30). The liberal talk shows were gone, replaced by Michael Jackson songs.

As has been the case, station officials weren’t talking. The only tidbit of information about what might be in store is that there was word the station had conversations about carrying a nationally syndicated morning show hosted by Dallas personality Kidd Kraddick. In many markets it airs on top 40 stations.

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

Inside Tucson Media appears weekly.

InsideTucsonBusiness.com

OCTOBER 5, 2012

11

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InsideTucsonBusiness.com

OCTOBER 5, 2012

13

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14 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

SALES SALES JUDO

Why we hate sales people and the horses they ride in on In recent “show of hands” surveys I conducted in classes I teach, 50 adult students and 40 college undergraduates described sales people as manipulative, pushy, deceitful, dishonest, aggressive, transparent, predatory, conniving, malodorous, obnoxious, offensive and well, just plain “icky.”

But here’s the strange bit: all of these people, young and old, either had to generate revenues for their own businesses or, upon graduation, to produce revenues for their employers. Jumping cognitive dissonance, these folks were truly conflicted!

So our collective mission became this: how can one sell products and services without offending others or debasing oneself? A good place to begin is to turn the mission statement on its head: what are offensive selling behaviors and where do they come from? How did sales people get such a bad rap?

Let’s warm up with the late Billy Mays, the TV pitchman for products including Oxyclean stain remover, and Vince Offer also known as Vince Shlomi, star barker for products including Sham Wow sponges and the Slap Chop veggie slicer.

To begin with, it’s their voices, overly energetic and even manic, that cause us to stop, look up and listen. Who really talks that way!?

And then their punching and chopping hand movements grab and continue to hold our attention. Are these guys for real!?

Then come the amazing demos of features and benefits punctuated with gag lines like “It’s gotta be good! Germans make it! And now, for the low, low price of only $9.99 plus shipping and handling it can be yours, if you order now, ‘cause, really folks, I can’t do this all day. But wait, I’m still not done, there’s more…”

Mays and Shlomi didn’t invent these

techniques. They were antedated by carnival show barkers of times past. There’s a rendition of a classic carny pitch or “bally” — from the word ballyhoo — by the SAM WILLIAMS Beach Boys’ Brian Wilson and Gary Usher in their song “County Fair”. It goes, “Hurry, hurry, hurry folks! Step right up to the best little show in town…It’s only a dime folks, one thin dime, just one tenth of a dollar. Come on in and see Stella the snake dancer…She walks, she talks, she wiggles on her belly like a snake.”

By the way, carny show barkers called themselves “talkers,” and their goals were structurally similar to those of Mays and Shlomi. First they needed to get your attention and according to an authority on carny lingo, Wayne Keyser — www. goodmagic.com — this was called “the opening” or “building the tip.” That was followed by “freezing the tip.”

According to Keyser, “You need to ‘freeze the tip’ while the ‘talker’ makes the pitch. The things that work best in the daytime is a beautiful girl in a revealing costume holding a big fat snake. And at night, a fire eater with a fire blast, fire juggling or even better, a strong freak.”

Once the barker got that far, “(I)t’s time to give them the pitch, the part where you describe in glowing hyperbole the glories to be seen inside the tent (features and benefits).

You might want to introduce a ‘hook,’ a promise of something that is just about to happen or a feature you must not miss.”

Next it’s “turning the tip” and “the jam.”

“The ‘turn’ is the point at which the sales

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pitch becomes a call to action. The term probably comes from turning a herd of cattle, and what human cow could resist a bargain? For that matter, who could get out of ‘the jam,’ the assembled, tightly packed ‘tip’ once the crowd started moving to the ticket booth and through the entrance?”

Finally, there’s the “blow off ” or “but wait, there’s more.” “After you have them inside, fairly captive, and have shown them the best you have, you have a chance to make your real money. Now it’s time for a final ‘surprise’ sales pitch. After you’ve delivered all you promised, the star attraction or the ‘inside talker’ would always give the people a chance to see something really special, for an extra charge.”

This type of sale isn’t too far removed from products of old that were sold door-to-door.

They are low value and low cost business-to-consumer sales, not businessto-business sales. In these cases, the buyer isn’t as experienced as a business-to-business purchaser.

“Turning the tip” is really a closing technique and salespeople of today who are involved in simple transactional consumer sales are often trained to “ABC,” always be closing, or “close early and close often,” at tribute to the late Chicago Mayor Richard Daley who made popular the expression “vote early and vote often.”

These type of techniques can work for low cost — “one thin dime” — one-time opportunities. The sellers will probably never see these prospects again. So, they have license to use cheesy closes, pressure, manipulation and to be, well, just plain icky.

But they have become part of permanent cultural memory.

Higher value, complex, consultative sales, whether business-to-business or business-to-consumer, there may be three

to seven calls made as sales professionals advance the opportunity from first meeting, to fact finding, draft proposal, proposal, negotiation, protecting the sale from incumbents, contract signing, issuance of a purchase order and initiation of product or service delivery.

Just try using a carny barker-type close in a complex consultative sale and you’ll discover a variant of “ABC,” namely Always Be Crying. Not only will you not close very many sales, you are likely to be thrown out of people’s homes or offices.

At the request of CEOs and senior vice presidents of sales at Xerox, IBM, Kodak and Citicorp, British industrial psychologist Neil Rackham observed 35,000 sales calls to try to uncover closing techniques used by their very best sales people. All of the business-to-business sales opportunities he examined were of a high value, complex, consultative nature.

The best closing technique he discovered was not to use a technique at all.

Instead of pitching, investigate. Let prospects design their optimal solutions.

Let those solutions address their needs and most especially their personal “pains,” the things they fear might happen to them and their careers if the problems you have helped them with are left unaddressed and unresolved.

So, aspiring new sales people, take heart! Good sales people aren’t carny show barkers, and there’s no need for them to be “icky.” They don’t just sell. They help.

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

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InsideTucsonBusiness.com

OCTOBER 5, 2012

15

PROFILE

Benchmark Concrete likes the challenge of custom work

By Alan M. Petrillo Inside Tucson Business

Benchmark Concrete

Alan M. Petrillo

One might say Terry Carson is a pretty picky person. After all, he admits to going through 72 employees during his first year in business in 1985 before he found the right dozen or so people to help him and his wife Diana make Benchmark Concrete Co. Inc. successful.

Carson’s pickiness is reflected in the work he and his crew do in creating custom concrete products that can be found Diana and Terry Carson discuss an around Arizona, from Mount Lemmon to upcoming custom concrete project.

Nogales and from Scottsdale to Douglas.

“We have the knowledge and BIZ FACTS experience to take on a project from the Benchmark Concrete beginning,” Terry 1986 W. McMillan St. Carson said, “setting www.benchmarkconcrete.com grades and forms, footings, tie steel, (520) 293-1305 pour stem walls and floors, as well as driveways, pool decks, steps, tunnels and multi-floor structures.”

Carson credits Benchmark’s employees with the expertise and skill to build unusual concrete structures that have won a number of awards, singling out Eric Lomeli, Benchmark’s vice president of construction, and John Gilbert, finish foreman, for special praise.

Carson built his company’s headquarters at 1986 W. McMillan St. 16 years ago and uses it as a test center where he experiments with various types of concrete and poured surfaces.

Benchmark Concrete has created a lot of bases for artwork around the state, said Diana Carson, An example of Benchmark including the sundial base Concrete’s countertops can at Innovation Corporate be found in the Carson’s pieces were custom shaped, formed own kitchen.

Center in Oro Valley, glass and cast in place. Carson pointed chromosomes cast in out that 99 percent of the counterconcrete for a Ventana tops his firm builds are cast in Medical Systems project, place. the Button Salmon Memo“Before North (restaurant) rial at the University of opened in La Encantada, we cast the Arizona, decorative colored concrete countertops for glass-in-concrete work both the men’s and women’s along the Oro Valley bathrooms,” Carson noted, “and right Marketplace river walk and now we’re working on a concrete the base for the Father Kino table top for a customer that is statue in Tucson.

3½-feet wide and 6 feet long which “Another of our specialwill go on top of a framework with ties is hardscape work,” she concrete floors in homes — reds, greens, 8-inch steel wheels the client built.” pointed out, “especially color-scored floors yellows and maroons,” he said. “We’ve even Water features and fireplaces are other where the color is integral with the been called in to repair some of those old niche products that Benchmark Concrete concrete. We do that by dropping the liquid floors.” produces. Examples of its work can be color directly into the concrete mixer Benchmark Concrete has seen a found in the water feature in the entrance before the concrete is poured.” growing interest in concrete countertops patio and the fireplace in the main dining Terry Carson noted that colored and table tops, both in homes and comroom at Old Pueblo Grill. concrete floors are very much a part of the mercial settings. Carson said he recently Carson said that while the recession has look of homes in the Southwest. completed a sink and countertop for affected Benchmark Concrete, he and “In the 1930s they were putting colored Morning Star Ranch in Tubac where seven Diana expanded their vision of the kind of

work they would seek and began taking more of the smaller jobs than they had in the past. Before the recession hit, Benchmark Concrete was working on at least one large custom home project a month.

“Over the last few years, we’ve done all kinds of work, from replacing sidewalks and driveways to putting in spa slabs,” he said. “The people who need smaller jobs done are as important to us as a custom 30,000-square foot house. That custom house might take two years to complete, where we pour the footings and floors at the beginning of the job and then at the end pour the driveway, patio and pool deck. You have to have other work between those times.”

Yet the smaller jobs often take as much time to manage as the larger ones, Carson added, and they require that the same quality be built into the job.

“The recession has humbled us,” Carson said. “Every client is as important to us as the next. We think that’s a pretty good lesson.”

16 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ARTS & CULTURE

MEALS & ENTERTAINMENT

Format and venues change for Two plays, two strong women in 10th annual culinary festival Invisible Theatre performances The Tucson Originals cooperative of locally owned restaurants holds its 10th annual Tucson Culinary Festival starting this weekend, with two big changes — a new format and a new location.

In the past the festival has concentrated its events over one weekend but this year the events are spread out over the entire month of October and is taking place at some new venues.

Casino Del Sol, 5655 W. Valencia Road, is the new location for the signature wine tasting events, which will take place Saturday (Oct. 6). The Grand Tasting will be from 6-9 p.m. and features more than 100 wines and a selection of micro brews and beers along with tastings of dishes from Tucson Originals restaurants. Tickets are $80 at the door.

The World Magarita Champsionship, which in the past has been the festival’s kick-off event, will take place Oct. 26 at the Tucson Museum of Art. • Tucson Culinary Festival — www. tucsonculinaryfestival.com

Buffalo wings doused Buffalo Wild Wings had an inauspicious opening of its third Tucson location this month when the place was flooded with water on its second day of business forcing it to close for a week to make repairs.

The restaurant, in a building on North Oracle Road formerly occupied by a Furr’s cafeteria, is now opened and bustling again, complete with 360-degree views of TVs tuned to just about every sports event

imagineable.

It’s a chain headquartered in Columbus, Ohio, that was started in 1981 by a couple of friends who had come from Buffalo, N.Y. It’s now up to more than 800 MICHAEL LURIA locations.

• Buffalo Wild Wings — www.buffalowildwings.com — 4329 N. Oracle Road, (520) 888-3184; 68 N. Harrison Road, (520) 296-8409; and 1390 W. Irvington Road, (520) 799-9464

More wings Another restaurant chain that likes to stake a claim on its Buffalo Wings, Native New Yorker has opened its second Tucson location in a former Chuy’s on East Speedway. Native New Yorker is a Phoenixbased chain that is now up to 24 locations in three states.

Besides the wings, the menu has salads, sandwiches, burgers and pizzas.

• Native New Yorker — www.nativenewyorker.com/ — 3100 E. Speedway, (520) 325-3489; and 8225 N. Courtney Page Way, Marana, (520) 744-7200

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

Invisible Theatre Company, 1400 N. First Ave., wraps up a four-performance run of “New Eyes” Sunday (Oct. 7). The one-woman play, written by and starring Israeli actress Yafit Josephson, tells the story of a young soldier turned actress in her country who is tired of being cast as the villain, and who sets out to change that perception. The final two performances are at 8 p.m. Saturday and 3 p.m.

Sunday. Tickets are $35 each.

Next week, the popular “A Conversation with Edith Head” returns to the Invisible Theatre for four performances Thursday through Sunday (Oct. 11-14). It features Invisible Theatre’s managing artistic director Susan Claassen in the role of famed costume designer Edith Head presenting a series of stories and memories from her award-winning Hollywood career. The piece has won awards for Claassen’s uncanny presentation and witty writing. Performances are at 7:30 Thursday, 8 p.m. Oct. 12 and 13 and 3 p.m.

Oct. 14. Tickets are $35 each.

Art Two new exhibits open this weekend at the Tucson Museum of Art, 140 N. Main Ave. One is “Barbara Rogers: The Imperative of Beauty,” a 50-year retrospective. Rogers, a retired University of Arizona art professor, is known for her lush and complex paintings depicting the chaos of form and color of gardens. The show will run through Jan. 13. Also

opening this weekend at TMA is a show titled “The Shape Of Things” examining four decades of paintings and sculpture created out of non-traditional shapes. The HERB STRATFORD exhibition features works from a variety of acclaimed artists and runs through Jan. 6.

Film Some excellent films are playing on movie screens this weekend. At the Loft Cinema, 3233 E. Speedway, the critically acclaimed new film “Killer Joe” features stand-out performances by Matthew McConaughey and Emile Hirsch in a dark comedy about a Texas murderer. Continuing its run is “Compliance,” a controversial film based on a true story of a fast-food restaurant manager who is convinced by a prank caller pretending to be law enforcement to interrogate an innocent employee which turns into the twisted sexual humiliation of the employee.

Contact Herb Stratford at herb@ ArtsandCultureGuy.com. Stratford teaches Arts Management at the University of Arizona.

He appears weekly in Inside Tucson Business.

T: 520-722-0707

www.cpgraphics.net

InsideTucsonBusiness.com

OCTOBER 5, 2012

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18 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

LOOKING BACK REMEMBERING TUCSON

Jonathan Landeen, the man behind venerable Cork restaurant The restaurant has morphed over the past 45 years from the Cork â&#x20AC;&#x2DC;n Cleaver to the Tucson Cork and continues to reign on Tucsonâ&#x20AC;&#x2122;s east side as Jonathanâ&#x20AC;&#x2122;s Cork.

Jonathan Landeen, who refers to himself as a cook rather than as a chef, says he is a hometown kid. He came here as a seven year-old in 1957 when his father, Fred, arrived to do his residency in anesthesiology at Tucson Medical Center. His mother Rae also was active at the hospital.

Fred Landeen later purchased the medical practice of Metz Wright, who wanted to return to school to become a surgeon. Landeen would then go on to found Tucson Medical Centerâ&#x20AC;&#x2122;s Ambulatory Surgery Center. In his spare time, he enjoyed hunting Working with the Arizona Game and Fish Department, Fred Landeen helped develop tranquilizer darts that were used on animals. It was a natural combination of his fondness for hunting and being an anesthesiologist.

Fred Landeen passed away in 1996, seven years after his wife Rae. The Landeens had lived in one of the

first homes in the Indian Ridge development near Tanque Verde and Sabino Canyon roads later, they moved to a home near Fort Lowell and Swan roads MARY LEVY PEACHIN where they live on seven acres that included a bamboo orchard and their own well.

Young Jonathan bicycled to school, attending Lizzie Brown (which later became Dodge Elementary), Whitmore then Townsend Junior High then Catalina High School.

After attending the University of Wyoming and the University of Arizona, Jonathan Landeen drove a beer truck for Harold Finleyâ&#x20AC;&#x2122;s Finley Distributing. Then, following short stints with Grant Road Lumber and working at Falstaff Beer, Landeen moved to Flagstaff to work for United Liquor.

Landeenâ&#x20AC;&#x2122;s roasting skills grew into an annual Patio Pig event.

In 1976, Landeen went to New Orleans where the famous Paul Prudhomme was the chef at the renowned Commanderâ&#x20AC;&#x2122;s Palace, owned by Dick and Ella Brennan.

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Two years la later, Landeen came back in Tucson to go work wo for Charles Kerr who was preparing to open his own retaurant, Charles, earned his reputation as manager of the Tack Room, the only Tucson restaurant ever to be both AAA five diamond and Mobil five-star award-winners.

The restaurant was housed in the historic grand Stone Ashley building that was the home of Florence L. Pond, daughter of a Detroit lawyer. Pond sold the building in 1947 and it became El Dorado Guest Lodge and Palm Court Restaurant.

The restaurant, at 6400 E. El Dorado Circle, later became named Stone Ashley and is now the home of the Mountain Oyster Club.

In 1983, Landeen helped open Ventana Golf and Racquet Club, now the Lodge at Ventana Canyon. He then moved on to work briefly for Jean Claude Berger, owner of Le Rendez-Vous, and then the Solarium, one of several restaurants along what was then called Tanque Verde Restaurant Row. Landeen worked there for 10 years. â&#x20AC;&#x153;That was my last big gig working for somebody else,â&#x20AC;? Landeen says. He left before the restaurant was shut down, then in 1999 ravaged by fire never to reopen again. The location is now the site of an office for Northern Trust.

The Cork, 6320 E. Tanque Verde Road, was originally built as part of the Cork â&#x20AC;&#x2DC;n Cleaver chain that started in Phoenix.

When the Tucson location opened, â&#x20AC;&#x153;it was a real hot spot,â&#x20AC;? recalls Landeen. Wellknown Tucsonans who worked there include Dave Sitton and Bucky Lovejoy.

Bill Hillenbrand, bought the restaurant from the chain in 1984 and renamed the Tucson Cork.

A decade later, Landeen bought it and later renamed it Jonathanâ&#x20AC;&#x2122;s Cork.

InsideTucsonBusiness.com

OCTOBER 5, 2012

LOOKING BACK reached back to his childhood days offering Not only has there been longevity in the his mother Raeâ&#x20AC;&#x2122;s meat loaf. The next thing restaurant itself, Landeen has been he knew, diners started asking when he fortunate to have some members of a loyal was going to offer it again. staff. Joel Mullen, who starting working at Jonathanâ&#x20AC;&#x2122;s Cork now has a regular the retaurant when he was 16, has been rotation for nightly specials. there for 35 years. Manager Jeff Hughes has Landeen believes one of the reasons for been there 14 years. His mother Sandal was his restaurantâ&#x20AC;&#x2122;s success is being a member a cocktail waitress. Chef Dave Samaniego of the Certified Angus Beef program, which has been with Landeen since his Solarium shows in the steaks served but especially so days. in the prime It takes rib. He is so creativity to confident in the stay relevant in beef, Landeen the restaurant says heâ&#x20AC;&#x2122;ll business. prepare steak â&#x20AC;&#x153;Having a tartare from his small restaufresh-cut rant, we donâ&#x20AC;&#x2122;t tenderloin to have a lot of diners who call room. Summer ahead. wine dinners Landeen has allow us to be been married more creative,â&#x20AC;? for 33 years to Landeen says.

Colette, a â&#x20AC;&#x153;My concept is Wisconsin comfort food, dairy farmerâ&#x20AC;&#x2122;s cook simple daughter he menu with met in Flagstaff. good basics. A She is now the steak is still a executive direcsteak.â&#x20AC;? tor of Tucson Jonathanâ&#x20AC;&#x2122;s Oroginals, the Cork has so association of many regulars locally owned Landeen restaurants that started creating has more than more innova50 members. tive menus. His Colette and New Orleans Jonathan have experience a 28 year-old prepared him im son Alex, who to incorporate ate Landeen loves creating creative menus. is a professional photographer. fresh fish and nd shrimp dish into his menu. professi Landeen isnâ&#x20AC;&#x2122;t cooking, His annual ual Patio Pig event was created When Jonathan Jo he likes to fly fish, vacation in the White because June was such a slow month. Each Mountains, and do a little hunting.

Thursday during the month, the restaurant â&#x20AC;&#x153;We have a nice house, and I like to puts a whole 80-pound on a spit and slow work in the yard,â&#x20AC;? he says. â&#x20AC;&#x153;But in the cooks it all day. Then in the evening, they restaurant business, you just canâ&#x20AC;&#x2122;t get away have a patio party. from it for long.â&#x20AC;? â&#x20AC;&#x153;It is a real local summer happening,â&#x20AC;?

Landeen says.

Do you have a historical Tucson story During the NFL season, the menus on to share?

Contact Mary Levy Peachin at Monday Night are determined by the teams mary@peachin.com.

Her historical columns playing. Chicago-style dogs might be on the appear the first week of each month in Inside menu when the Bears are playing and you Tucson Business. can be sure cheese is involved if the Green Bay Packers are playing. Landeen also

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20 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

CALENDAR SPECIAL EVENTS

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

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 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 Casas Adobes Rotary Club Every Wednesday 7 to 8 a.m.

La Paloma Country Club, 3660 E. Sunrise Drive Information: www.casasadobesrotary.org 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.

McMahonâ&#x20AC;&#x2122;s Prime Steakhouse 2659 N. Swan Road RSVP: Cindy Morgan at (520) 403-8798 or morgansautoshop@aol.com Cost: $16 includes lunch

InsideTucsonBusiness.com

OCTOBER 5, 2012

21

CALENDAR 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) 663-9118 or jim_eng@juno.com

Information: www.Desertstars.freetoasthost.com

Information: www.barcafinancial.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

Foothills Optimist Club First and third Wednesdays, noon Macayo’s Restaurant 7360 N. Oracle Road Info and RSVP: (520) 744-5927

Financial Workshops for Women Every Tuesday at 6 p.m.

Barca Financial Group 5470 E. Speedway Suite A106

Foothills Rotary Club Every Friday, noon Metropolitan Grill 7892 N. Oracle Road RSVP: Eric Miller, (520) 979-1696

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22 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

NEWS

Public hearings set on plans for gas pipeline

By Keith Rosenblum Inside Tucson Business Whether a natural gas pipeline should built from west of Tucson to the border at Sasabe will be the topic of hearings conducted this month by the Federal Energy Regulatory Commission (FERC).

The scoping meetings will evaluate a proposal by Houston-based Kinder Morgan Co. to install 60 miles of pipeline from Picture Rocks along two potential paths to Sasabe, Sonora. The project would be of little consequence to Arizonans, providing right-of-way royalties to a handful of landowners though it would create 500 temporary construction jobs. It has received a negative initial response.

On the other side of the border it has profound implications for Mexico, which is seeking to introduce natural gas to its northern region and create an 800-mile grid of natural gas pipelines, originating in Sasabe.

Comisión Federal de Electricidad (CFE), Mexico’s national electric company, plans for natural gas to replace bunker oil at four power plants along the Sea of Cortez and provide an inexpensive energy alternative for industrial and residential use.

Natural gas prices in the United States right now are so far below other fuels the savings from converting a single power plant would pay for the entire pipeline, Mexican officials say.

The hearings are scheduled Oct. 18, at 6 p.m. at Robles Elementary School, 9875 S. Sasabe Road, south of Three Points; and Oct. 20, at 10 a.m., at San Fernando Elementary School, 1 Schoolhouse Drive, Sasabe.

The scoping process is part of an environmental impact statement Kinder Morgan announced it would undertake Aug. 1.

The scoping process is to determine if the pipeline is “in the public convenience and necessity” and must take into account if there is “potential for significant adverse affects to the human environment.” Community input is but one of many factors regulators will take into account before making a decision. The Mexican government is push-

ing Washington, D.C., to approve the project, accordinig to CFE and other officials.

The initiative, formally named the Sasabe Later Project, would connect the company’s South Mainline System via a 36-inch pipeline and pump 200 million cubic feet of natural gas per day in its first year.

Under CFE plans, the grid would carry the gas 800 miles to several Sonoran cities and eastward to Chihuahua state. The project was initiated by El Paso Natural Gas. Kinder Morgan acquired the company’s pipeline operations in May. That quantity of natural gas would be enough for conversion of a 632 megawatt power plant at Puerto Libertad, 250 miles from the Arizona border and for much of a combined-cycle generating plant planned for 2017 in Guaymas.

The Puerto Libertad plant now spews black smoke into the air, which is high in sulfur. That would be eliminated with natural gas.

Conversions to natural gas would follow at power plants in Topolobampo and Mazatlán.

The natural gas project has been presented as a fait acomplí in Mexico.

Neither CFE nor Kinder Morgan has commented publicly on the possibility that a pipeline might not get regulatory approval in the U.S. The Mexican government has now awarded six contracts in anticipation of the pipeline. Three segments are in operation, three are under construction and another three — including those in the area around Sasabe, Sonora — are pending.

The natural gas in the pipeline is to be come from a U.S.-subsidiary of Pemex, Mexico’s national oil company.

Sonora ranchers along the route say Fermaca, based in Hermosillo, Sonora, has been seeking to purchase rights-of-way. The same company was recently awarded pipeline rights for pipeline segment in the states of Chihuahua, Durango and Coahuila. If agreement is not reached, Mexican law offers government the option of expropriation which are similar to eminent domain laws in the U.S. An abundant supply of natural gas in the U.S. now sells at prices that are the equivalent of oil priced around $10-15 a barrel.

Natural gas prices in the United States right now are so far below other fuels the savings from converting a single power plant would pay for the entire pipeline, Mexican officials say.

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Register for upcoming boot camp classes, enjoy refreshments, hear presentations from renowned speakers in the health care industry, and participate in a demonstration boot camp class.

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InsideTucsonBusiness.com

OCTOBER 5, 2012

23

NEWS

46 businesses are finalists for Copper Cactus Awards Inside Tucson Business Taking over as the new title sponsor of this year’s Copper Cactus Awards, the Tucson Metro Chamber announced 46 businesses and five business leaders are finalists for the awards that will be handed out in ceremonies Nov. 13.

More than 400 nominations were submitted for this year’s 15th annual awards recognizing the achievements of small businesses — those employing 250 or fewer — in Southern Arizona.

Three awards will be handed out in each category — one for businesses with 30 or fewer employees, another for businesses with 31-75 employees and another for small business with more than 75 employees. This year’s finalists are:

Best place to work Honoring businesses that encourage and support professional growth, education, and development for employees.

• Bank of Tucson, 4400 E. Broadway • Beach Fleischman certified public accountants, 1985 E. River Road • CEDR Solutions human resources, 2015 N. Forbes Blvd., Suites 105/106 • Cemrock Naturalistic Environments, 4790 S. Julian Ave. • Easycare Horse Hoof Boots, 2300 E. Vistoso Commerce Loop Road, Oro Valley • Gaslight Theatre, 7010 E. Broadway • Goodman’s Interior Structure, 3925 N. Business Center Drive, Marana • LP&G, 2329 N. Tucson Blvd.

• Maids of Tucson, 4425 E. Broadway

• Merle’s Automotive Supply, 4015 S. Dodge Blvd.

• O’Rielly Chevrolet, 6100 E. Broadway • Patio Pools & Spas, 7960 E. 22nd St. • Pima Dermatology, 5150 E. Glenn St. • Rosemont Copper, 2450 W. Ruthrauff Road, Suite 180 • Zanes Law, 3501 E. Speedway, Suite 101

Business growth Honoring businesses successfully tackling marketplace challenges.

• Casa de la Luz Hospice, 7740 N. Oracle Road • Commercial Carpet Cleaning, 4925 N. Shamrock Place, Suite 105 • Crest Insurance, 5285 E. Williams Circle, Suite 4500 • Realty Executives Tucson Elite, 6760 N. Oracle Road, Suite 130 • Spectrum Ina Road Auto Collision, 4425 W. Ina Road, Marana • Synergy HomeCare, 1926 E. Fort Lowell Road, Suite 103 • Tattoo Manufacturing, 3741 E. Technical Drive • TCI Wealth Advisors, 4011 E. Sunrise Drive • Tucson Tamale Company, 2545 E. Broadway • Xcel Delivery Services, 3770 S. Broadmont Drive

Community service Going to businesses that demonstrate uncommon civic leadership.

• CAID Industries, 2275 E. Ganley Road

Innovation through technology This award goes to businesses that are technology-led and/or look to information technology to solve problems and increase efficiency. The award is sponsored by the IT consulting firm Nextrio.

• 4D Technology Corporation, 3280 E. Hemisphere Loop, Suite 146 • BestComm Networks, 5605 E. River Road, Suite 219 • Darling Environmental & Surveying, 9040 S. Rita Road, Suite 2350 • Dataforth, 3331 E. Hemisphere Loop • Engineering & Environmental Consultants, 4625 E. Fort Lowell Road, Suite 200 • IntelliQuick Delivery, 4650 S. Coach Drive, Suite 180 • Larsen Baker, 6298 E. Grant Road • Pace Technologies, 3601 E. 34th St. • Simpleview, 7458 N. La Cholla Blvd.

• SynCardia Systems, 1992 E. Silverlake Road • Tucson Embedded Systems, 5620 N. Kolb Road, Suite 160

Small business leader of the year Honoring exceptional leadership by a manager or owner who is active in the dayto-day activities of his or her company.

• Ron Adair, Adair Funeral Home, 1050 N. Dodge Blvd.

• Bob Breault, Breault Research Organization, 6400 E. Grant Road • Jeffrey A. Hamstra, Hamstra Heating & Cooling, 2035 E. 17th St. • Amanda Holbert, Elegant Iron, 321 S. Kino Parkway, Suite 111 • Mic Williams, Micro Import Service, 1033 N. Catalina Ave. The awards dinner and ceremony begins at 5 p.m. Nov. 13 at the Westin La Paloma Resort and Spa, 3800 E. Sunrise Drive. Emcees for the event are Bobby Rich, morning host on Mix-FM KMXZ 94.9-FM, and Sean Mooney, weekend news anchor on KVOA 4.

Tickets are $75 each and table sponsorships are available for $2,500. Buy them online at www.TucsonChamber.org/CopperCactusAwards .

Wells Fargo, which launched the Copper Cactus Awards, continues as a presenting sponsor of this year’s event. Supporting and co-sponsors are Casino Del Sol Resort and Conference Center and Intuit.

PEOPLE IN ACTION

NEW HIRES The University of Arizona Department of Pediatrics and University of Arizona Health Network have hired Dr. Yi Zeng to the Section of Hematology/ Oncology/BMT. Zeng is a physician-scientist who will provide clinical care to children with cancer and blood disorders at The University of Arizona Medical Center – Diamond Children’s and conduct pediatric cancer research at the UA Steele Children’s Research Center. Zeng completed medical school and a pediatrics residency at West China University of Medical Sciences. She then came to the United States to earn a doctorate in microbiology and immunology at the University of Arizona College of Medicine.

• Commotion Studios, 1802 W. Grant Road, Suite 108 • Cook & Company Signmakers, 134 S. Tucson Blvd.

• Golden Eagle Distributors, 705 E. Ajo Way • Horizon Moving Systems, 3600 E. 36th St. • Jonathan’s Cork, 6320 E. Tanque Verde Road • Picor Commercial Real Estate Services, 1100 N. Wilmot Road, Suite 200 • Shaffer Dry Cleaning & Laundry, 2901 N. Campbell Ave. • Strongpoint Marketing, 3131 E. Second St. • Swaim Associates architects, 7350 E. Speedway, Suite 210

DR. YI ZENG

The Tucson Metro Chamber has hired Laura Nagore as the accounting and operations manager.

Nagore has 15 years experience in accounting, human resources and office management. Most recently she served as the business office manager at Friendship Villas at La Cholla LLC. She has also worked at the University of Arizona and the National Headquarters of the Muscular Dystrophy

Association. Nagore holds an A.G.S. specializing in business from Pima Community College.

HTG Molecular Diagnostics has hired Dr. Vijay Moduras as vice president of translational science and chief medical officer. Modur joins HTG Molecular Diagnostics from Novartis Molecular Diagnostics where he served as global head of diagnostic discovery.

LAURA NAGORE

DR. VIJAY MODURAS

{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.

He has a medical degree from Karnatak University in India, a doctorate in experimental pathology from the University of Utah School of Medicine and

completed a residency at the Washington University School of Medicine.

GUILLERMO FIGUEROA

AWARDS Snell & Wilmer has announced that nine of the firm’s Tucson office attorneys were selected among The Best Lawyers in America 2013. Since it was first published in 1983, Best Lawyers has become regarded as the definitive guide to legal excellence.

The following Snell & Wilmer Tucson attorneys are named in The Best Lawyers in America 2013:

Charles E. Giddings, William N. Poorten III, Curt D. Reimann, John A. Robertson, Jon Saffer, Amy M. Samberg, Marc G. Simon, M. Roxanne Veliz and Jeffrey L. Willis.

APPOINTMENTS CenturyLink has appointed Guillermo Figueroa to the position of marketing development manager. He is responsible for media interaction,

community affairs, sales and marketing events. Guillermo has more than 22 years of management experience in the telecommunications field with companies like Motorola, US West and Qwest Communications.

He has a bachelor’s degree from Instituto Tecnologico de Hermosillo in Sonora, Mexico.

Dr. Sam Keim has been appointed head of the Department of Emergency Medicine and director of the Arizona Emergency Medicine Research Center (AEMRC) at the University of Arizona College of Medicine. He has a medical degree from the UA College of Medicine and a master’s degree in clinical epidemiology from the UA Mel and Enid Zuckerman College of Public Health.

24 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

GOOD BUSINESS ON GUARD

Nurturing ethics and trust can help a business succeed Start with Trust. This is the Better Business Bureau’s slogan, but it begs the question: where does trust start? Trust between a business and its customers must be developed and nurtured over time in a number of different ways, but the ethical foundation for trust lies with the people who a company employs.

Some of the most easily avoidable complaints we receive at BBB stem from situations where an employee of a company initially mishandles their customer service duties, is less than honest with a consumer about their company’s product or service. In extreme cases a customer might even have a personal item stolen while they’re on the business premises.

More often than not, owners and managers are horrified when they receive these sorts of complaints, and usually bend over backwards in an attempt to make amends with their customer. But often by that point the damage has already been done. The customer has already lost trust in that business.

The Ethics Resource Center (ERC), a non-profit organization specializing in the research and advancement of high ethical standards in both public and private institutions, outlined some disturbing workplace trends in their bi-annual National Business Ethics Survey. Among the trends ERC uncovered were: • Retaliation against whistleblowers rose sharply. More than one in five employees who reported misconduct in the workplace said they experienced some form of retaliation in return. ERC says this compares to only 12 percent who experienced retaliation in 2007, and 15 percent in 2009.

• ERC found that the percentage of employees who perceived pressure to compromise standards in order to do their jobs climbed five points to 13 percent, just shy of the all time high of 14 percent in 2000.

• The share of companies with what ERC defines as “weak ethics cultures” climbed to near-record levels at 42 percent, up from 35 percent two years ago.

While these trends clearly indicate there’s been an erosion of ethical behavior in many workplaces across the country, ERC suggests several courses of action for owners and KIM STATES managers looking to shore up ethical behavior among their employees: • Invest deeply in ethics and compliance programs and make ethics a business priority.

Companies that do not have ethics and compliance programs should invest in the development of a code of conduct and the implementation of program practices that are considered to be best practice. Even if an ethics and compliance program is in place, what matters most is employee awareness that standards and resources are available and being actively used to ensure that integrity is a priority in business activity.

• Communicate your personal commitment to ethical conduct. During the recession, employees noticed their business leaders were talking more about the importance of integrity despite difficult external circumstances. Even though the financial outlook may now be improving, these leadership actions should not only be continued, but heightened.

Integrate references to company values and standards in formal and informal communications. Explain how your commitment to business integrity factors into your decisions about business strategy. While seemingly unimportant, these efforts – if consistently done – have an infectious effect on employees throughout the organization.

• Develop ways to strengthen your ethics culture using social networks. Connections between people via technology are here to stay. Seize the opportunity for social networks to connect employees, engaging them in discussion about ethics issues. Seek out active

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

SI O T E E FR

social networkers and enlist them in efforts to positively integrate social networks into your business culture.

• Revisit your company’s non-retaliation policy and practices. Determine whether improvements are required; make sure anti-retaliation rules are communicated effectively to employees at all levels. Insist the rules be respected and enforced. Regularly communicate with employees about the company’s response to allegations of misconduct — the more employees perceive that appropriate action will occur and whistleblowers will be protected, the more likely they will be to report misconduct.

A company that employs honest, ethical employees is more likely to be an ethical company, with a large degree of trust between itself and its customers. On the flip side, a company that employs unethical employees more often than not will struggle to not only earn and maintain customer trust, but often will also struggle to stay in business.

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

TUCSON BBB ACTIVITY REPORT SEPTEMBER 2012 Top 10 most-complained-about industries

Complaints

Settled

Travel agencies and bureaus

14

None

Real estate

11

45%

Auto repair and service

9

78%

Air conditioning contractors

9

89%

Apartments

8

63%

Property management

8

75%

Movers

7

57%

Martial arts supplies and equipment

6

None

Collection agencies

5

100%

Dentists

5

Top 10 most-inquired-about industries

100%

Inquiries

1.

Roofing contractors

1,504

2.

Air conditioning contractors

1,324

3.

Auto repair and service

1,294

4.

Used car auto dealers

1,134

5.

Pest control services

1,074

6.

Plumbing contractors

1,008

7.

General contractors

923

8.

Travel clubs

863

9.

Property management

814

Real estate

714

10.

Source: BBB of Southern Arizona

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26 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

BRIEFS GET ON THE LIST

Next up: Alarm system companies, Security firms, Insurance agencies and brokers, Property casualty insurance agencies

A Tucson Classic.

Inside Tucson Business is coming up on the finals months 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: • Oct. 12: Franchises, Employment agencies • Oct. 19: Alarm system companies, Security firms, Insurance agencies and brokers, Property casualty insurance • Oct. 26: Women-owned businesses • Nov. 2: Chambers of commerce, Business and trade organizations • Nov. 9: Telephone service providers, Telecommunications equipment providers, Teleservices firms If your business fits one of these categories, now is the time to update your profile.

Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions.

The Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

LEGAL

Ponzi scheme gets Tucson man 33-month sentence A Tucson man has been sentenced to nearly three years in federal prison in connection with an investment scheme.

Anthony Eugene Linton, 57, was sentenced by U.S. District Judge Jennifer Guerin Zipps to 33 months in federal prison following his guilty plea to wire fraud and engaging in illegal monetary transactions greater than $10,000.

According to the plea agreement, Linton devised a scheme to defraud individual investors by convincing them to invest in his “Private Trading Pool” (PTP).

Investors were told that their money would be invested in the Foreign Currency Exchange Market. But Linton instead used the funds to buy and sell items on e-bay and pay personal expenses including mortgage, car and credit card payments, according to the U.S. Attorney’s office.

Linton advised investors that their investments would be free of tax consequences because they could “gift” to him up to

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InsideTucsonBusiness.com

OCTOBER 5, 2012

27

BRIEFS $12,000 a year to invest with him tax free.

They were led to believe that Linton would then “gift” their return on investment back free from taxes at amounts up to $12,000 a year.

At least 26 people invested with Linton at total of $808,685. Linton paid investors approximately $331,127 in Ponzi-type repayments with the use of other investors’ funds.

A restitution hearing is set for Dec. 20.

1310 W. Miracle Mile.

• 6-8 p.m. Oct. 10 at Palo Verde High School, 1302 S. Avenida Vega.

• 9:30-11:30 a.m., Oct. 13 in the Multipurpose Room of the Tucson Police Department’s Midtown Substation, 1100 S. Alvernon Way. Information about the workshops and Plan Tucson are online at http://cms3.tucsonaz.gov/plantucson or call (520) 7922489.

HEALTH CARE

Sierra Tucson adds new data-driven evaluation Sierra Tucson is developing a new realtime evaluation program called Outcomes Research that will gather health-related data during and after the treatment of patients.

The main goals of Outcomes Research are to: 1. Assess patient pre- and post-treatment clinical status 2. Differentiate the relative contributions of various treatments to clinical gains and 3. Explore the sustainability of those gains over the course of the patient’s recovery.

Leading the project are Medical Director Dr. Robert Johnson, D.O.; Antoinette Giedzinska-Simons, Ph.D., health psychology practitioner; and Holly Jindrick, Psy.D., manager of the Psychology Department.

They and other staff members are finalizing the methodological infrastructure and working to formalize the research department.

Sierra Tucson treats patients with addictions, mental/behavioral disorders, and chronic pain.

POLITICS

Metro chamber says vote ‘yes’ on 3 propositions The Tucson Metro Chamber’s board of directors has come out with endorsements encouraging voters to support three ballot measures on the Nov. 6 ballot, including the City of Tucson’s request for $100 million in bonds for road repairs.

The other two receiving support are state-wide measures.

The three are:

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The City of Tucson plans a series of public workshops in preparation for a new general plan, called Plan Tucson.

The input gathered from the workshops will help set the direction for the city’s future pattern of land uses and transportation, which will be documented in Plan Tucson.

The new general plan, which is required by state law, will go to voters for approval in November 2013.

Each workshop will have the same content and are intended to complement a series of 39 working groups that have been held with stakeholders over the past year to develop draft policies for Plan Tucson.

The workshops are scheduled for: • 1:30-3:30 p.m. today (Oct. 5) in the Sentinel Building at the Community Resources Center, 320 N. Commerce Park Loop.

• 10 a.m.-noon Saturday in Building 9 of El Pueblo Regional Center, 101 W. Irvington Road.

• 6-8 p.m. Monday in the Multipurpose Room of the Westside Police Service Center,

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• Proposition 116, the Small Business Job Creation Act, would change the way businesses can claim the tax exemption on newly purchased business equipment. The measure would hold the state nearly harmless, costing it $8.2 million in revenues in the first year, the 2014-2015 fiscal year, but would provide significant encouragement for businesses to purchase new equipment as well as encourage businesses to expand and move to the state.

• Proposition 117 would alter the formula for calculating property valuations for tax assessments to prevent the limited cash

28 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

BRIEFS value, which is used to calculate primary property taxes, from increasing by more than 5 percent in a year and never allow to exceed the full cash value. Currently the limited cash value can increase by either 10 percent from the previous year or by 25 percent of the difference between the current year’s full cash value and the previous year’s limited cash value. The chamber believes ballot measure would simplify the tax code.

• Proposition 409, the City of Tucson’s $100 million bond request to repair streets.

The bonds would be issued in five, $20 million allotments and would have minimal effect on taxes; $18 per year per $100,000 of full cash value.

Hispanic chamber supports 3 propositions, opposes 2 The Tucson Hispanic Chamber of Commerce’s board of directors has taken a stand

on five of the nine propositions on the Nov. 6 state-wide ballot.

The three measures it is supporting are: • Proposition 116 to reset the tax examption for new equipment and machinery purchases. The Hispanic chamber said it believes the measure will encourage businesses to grow and expand by stimulating reinvestment.

• Proposition 119 would allow for a process of exchanges of state trust land if it is related to protecting military installations.

The Hispanic chamber said the measure will allow military bases to be sensitive to neighborhood concerns while at the same time safe-guarding their ability to grow.

• Proposition 121 would change the way Arizona conducts primary elections so that candidates from all parties would appear on the same ballot and the top two vote getters

would move to the general election, regardless of political party. The Hispanic chamber says the measure would calm the divisiveness of elections and provide more opportunities for moderate and pro-business candidates.

The two measures opposed by the Hispanic chamber: • Proposition 117 to change how much the limited cash value on property for tax purposes can be increased. The Hispanic chamber said that while it supports tax reform, this measure would cap property taxes further impeding the ability of elected official officials to make decisions regarding services.

• Proposition 204, the Quality Education and Jobs Initiative, that would make permanent a temporary 1 percent sales tax that’s due to expire at the end of May 2013. The Hispanic chamber says the promise was that the sales tax would be temporary and passing it would further tie the hands elected officials.

HUMAN RESOURCES

C3 call center to hire hundreds more workers Call center operator C3/CustomerContactChannels (C3), has announced plans to hire hundreds of new customer service agents for its Tucson center.

The majority of new positions will be in customer services, management positions also will be hired, according to a company news release.

C3, based in Plantation, Fla., came to Tucson in August. Its announcement at that time to hire 600 workers brought out more than 1,600 applicants to a two-day recruiting event.

The company’s call centers provide support to clients in the telecommunications, healthcare and social commerce industries.

The company is accepting applications

Local to you.

online at jobs.c3connect.com.

KUDOS

East Lawn Palms named 2012 AZ cemetery of the year East Lawn Palms Cemetery has been named the cemetery of the year for 2012 by the Arizona Funeral, Cemetery & Cremation Association.

The association has been giving out the award for the more than 20 years. Criteria includes demonstrating demonstrating high, measured levels of customer service; minimal amount of licensing board complaints; commitment to the local community and commitment to the betterment of the industry.

It is part of the group’s efforts to promote continuing education, high ethical standards and advocacy for families and professionals in the death care industry.

East Lawn Palms, 5801 E. Grant Road, occupies 52 acres offering families a peaceful and serene setting with a backdrop of the Santa Catalina Mountains. The cemetary is planning an expansion cremation garden.

EVENTS

Rotary Club panel to cover regional economy The Rotary Club of Tucson plans a discussion panel on the regional economy.

“The Future of the Tucson Economy,” is planned for the club’s Oct. 31 meeting at noon at the Doubletree Hotel, 445 S. Alvernon Way. Panel members include Pima County Administrator Chuck Huckelberry, Tucson Mayor Jonathan Rothschild, Tucson Chamber of Commerce CEO Michael Varney and TREO president Joe Snell.

For More information, contact Alan Schrope at (520) 308-3439 or aschrope@ tucsonvah.com.

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FINANCE YOUR MONEY

How to make a 401(k) or IRA free from income tax, for life Unrelenting, incessant, intrusive and pervasive. These are just a few descriptions of the way many folks feel about taxes.

While necessary, we should not pay a dime more than we have to. And what does the future look like? More taxes, I suspect.

Your 401(k), 403(b), individual retirement accounty and other qualified plans require you to pay taxes on withdrawals as those dollars are un-taxed. At age 70½, the government mandates a “required minimum distribution” annually even if you don’t need the money. Failure to take those distributions, incurs a 50 percent penalty. Those distributions may also trigger taxes on your Social Security.

There is a legal way around the taxes.

The government gave us a gift—a lifetime of income-tax free benefits. It’s a gift that not only keeps on giving but may be passed on to heirs. It’s called a Roth IRA. And now, before the end of the year, is a great time to give serious consideration to this important strategy if you believe taxes will never be this low again.

If you are counting on your qualified plan to provide income for your retirement you may want to consider a strategy that will give you safety, guaranteed growth, and guaranteed income for life, free of income taxes.

The single biggest fear most people have for retirement is running out of money before they run out of life. There is no way of knowing how long your money will last while invested in securities. Retirement plan holders often need a statement to tell you where their money is invested. Fewer still are able to talk about expense ratios within their funds, internal costs or the name of the fund manager handling their funds.

Most people over the age of 50 are concerned about the combined impact of future taxes and continued market volatility knowing it can significantly impact their futures. There is a viable alternative to current retirement plans that will: • Preserve and protect your retirement account.

• Eliminate market volatility • Eliminate Required Minimum Distributions • Eliminate potential additional taxes on Social Security • Never pay federal income taxes again • Create an income tax-free benefit for your heirs • Increase your retirement account by 10 percent immediately • Create guaranteed income for life for you and your spouse All of these can be accomplished by rolling over retirement funds to a Fixed

Indexed Annuity with a bonus, a Lifetime Income Rider and converting to a Roth IRA. The down side is you will pay the taxes now. If you have the money available from non-qualified SUSAN L. MOORE (non-IRA) funds, this is a truly great strategy.

Let me give you an example: John is 60, his wife Jane is 58. He has $500,000 in his 401(k) invested in stocks, bonds and mutual funds. If John leaves it there and starts drawing his money at 4 percent, when the market is declining he has no guarantee how long that money will last.

If John rolls over his 401(k) into a Fixed Indexed Annuity and converts to a Roth and uses other non-qualified funds to pay the taxes, the results will be: • Elimination of market risk forever • An immediate 10 percent bonus creating a $550,000 Roth IRA • An annual “roll-up” at 6.5 percent (increase in the Income Account Value) • At Jane’s age 65, start taking 4.5 percent of Income Account Value • Guaranteed annual income of $38,461.17, free of income tax for life.

• Income will continue for life for a surviving spouse • Any funds left in the Roth IRA after both John and Jane die will be free of income tax to heirs • No required minimum distributions, ever • No impact on Social Security or Medicare • No income requirements. Anyone may convert a qualified plan to a Roth Would you rather pay taxes on the seed or the harvest? The Roth IRA is a strategy if you have the non-qualified funds available to pay the taxes on your qualified plan.

Fixed Indexed Annuities offer safety, guarantees and lifetime incomes. They are sold by insurance agentsand not to be confused with Variable Annuities sold by brokers which subject your nest egg to market risk. As always, talk to a licensed insurance specialist and understand your options so you can make informed decisions.

Contact Susan L. Moore Vault, president of Moore Financial Strategies, at susan@ moorefs.com or (520) 296-4464. She hosts “Safe Money Strategies” now airing from 7-8 a.m.

Saturdays on KNST 97.1-FM/790-AM.

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

Company Name

Symbol

Oct. 3 Sept. 26 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

0.03 0.01 12.24 41.41

0.04 0.02 12.69 42.30

-0.01 -0.01 -0.45 -0.89

0.03 0.01 9.56 34.28

0.37 0.10 15.94 42.71

8.78 0.39 2.78 9.11 59.35 7.81 89.49 17.76 59.18 3.79 19.27 34.06 36.19 29.75 31.78 15.50 99.62 39.88 48.86 10.16 73.66 58.39 21.99 39.41 29.09 61.77 60.96 210.51 34.45 61.06 5.36 40.86 35.84 15.37 52.24 23.79 1.50 37.41 30.70 41.29 58.21 39.49 39.00 40.66 47.47 68.08 23.89 16.50 54.98 47.87 16.02 43.90 56.46 10.70 9.14 43.79 35.38 63.09 17.01 27.47 45.80 21.14 120.64 27.76 11.78 34.88 74.20 36.36 35.44 10.27 21.17

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

-0.11 0.29 0.00 0.30 0.57 -0.02 1.16 0.17 0.52 0.15 0.72 1.55 1.07 1.22 -0.15 0.14 -1.38 -1.35 1.03 1.00 0.72 -0.48 1.09 0.13 0.89 2.60 1.52 6.51 0.84 3.09 0.02 0.62 0.10 1.47 0.85 0.28 0.01 2.77 0.70 0.33 0.91 1.74 -0.01 2.67 1.06 1.89 -0.66 1.20 -2.61 0.68 0.03 0.35 1.62 0.17 0.22 -0.66 0.73 -0.74 0.18 -0.10 1.16 0.98 1.72 -0.99 1.28 0.93 0.01 0.54 1.02 0.05 0.80

7.97 0.20 1.48 4.92 50.95 5.30 69.07 16.25 46.02 3.30 13.24 23.29 20.88 14.61 22.19 9.03 78.41 31.81 32.71 7.08 41.50 46.96 8.60 31.08 19.05 31.75 43.26 172.68 27.10 46.40 3.01 28.28 26.10 5.46 42.72 20.98 0.49 12.98 19.30 33.91 38.72 25.28 26.71 14.68 34.87 51.14 19.06 3.58 39.61 36.50 14.73 31.61 28.89 6.25 7.32 35.80 21.59 47.25 14.04 26.06 29.90 15.51 82.62 25.77 3.96 22.76 52.13 28.53 23.19 5.41 14.22

11.66 3.10 4.06 10.10 61.40 9.94 89.95 28.53 60.00 4.93 21.16 38.40 36.90 30.00 34.74 16.55 103.51 43.43 48.98 12.25 79.23 67.20 22.79 48.96 30.88 61.78 62.00 211.75 34.60 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 37.35 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.

30 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

INSIDE REAL ESTATE & CONSTRUCTION

SAHBA Home Show opens today; foreclosures fall… Yes! The free event features educational resources on topics such as affordable housing and family financial literacy, along with entertainment, food, door prizes, a food and diaper drive, and other activities by various non-profits.

By Roger Yohem Inside Tucson Business Southern Arizona’s largest and longestrunning home show, the SAHBA Home & Garden Show opens today (Oct. 5) at the Tucson Convention Center, 260 S. Church Ave. Presented by the Southern Arizona Home Builders Association, it runs through Sunday.

Builder and trades professionals who are SAHBA members will anchor several major consumer education exhibits. At SAHBA Central, Certified Custom Builders Council and Green Build Council members will provide advice on best practices in home construction.

At SAHBA Remodeler’s Row, consumers can access remodelers, suppliers and ideas about home improvement.

Other activities include free do-it-yourself and how-to classes from Home Depot.

Make-it take-it crafts and other crafting ideas will be showcased by Michaels arts and crafts stores.

The Central Pet Experience will offer pet agility training demonstrations. Pima Animal Care Center will do pet adoptions. And the Sonoita-Elgin Chamber of Commerce will exhibit regional wines with tasting samples.

Sponsors of the event are Patio Pools and Spas, Home Depot Home Services, Southwest Gas, Kinetico Water Systems, Mattress Firm and Central Pet. Discount admission tickets are available, check online at www. sahbahomeshow.com.

The show opens daily at 10 a.m. and closes at 7 p.m. today and Saturday and 5 p.m. on Sunday. Parking at the convention center is free during the event.

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

TUCSON REAL ESTATE

9/17/2012

9/24/2012

$145,000 4,256 383 346 182

$148,000 4,375 418 352 305

Source: Long Realty Research Center

MLS 2013 board named The Tucson Association of Realtors Multiple Listing Service (TAR/MLS) has named its 2013 board of directors.

TAR/MLS is a wholly owned subsidiary of the Tucson Association of Realtors. The service is a cooperative real estate database of home listings and sales information in Southern Arizona, explained TAR executive director Phil Tedesco.

Next year’s board includes James Adams of Long Realty Company; Sue Cartun of Keller Williams Southern Arizona; Kelly Hand of Tierra Antigua Realty; Kevin Kaplan of Long Realty; David Painter of Realty Executives Tucson Elite; and Steven Redmond of Long Realty who will serve as the liaison to the association’s board of directors.

Also serving are Dan Santa Maria of Santa Maria Realty; James Strong of Coldwell Banker Residential Brokerage; Maureen Thompson of Integra Group Real Estate; Bob Zachmeier of Win3 Realty; and Henry Zipf of Henry Zipf Co. The new directors will take office in January 2013.

Foreclosures get interesting The SAHBA Home Show features hundreds of vendors and exhibits on home ownership and remodeling.

Hamstra’s ‘ACT’ 2 It looks like its déjà vu all over again for Jeff Hamstra, president of Hamstra Heating & Cooling.

He has been re-elected to serve a second term as chairman for 2012-2013 of the board of directors of the Alliance of Construction Trades (ACT).

Joining Hamstra as officers are vice chairman and secretary Bob Dinius, Qualified Mechanical; and treasurer Fred Gomez, Desert Barricades.

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

Current

Last Week

10/2/2012

One 12 Month 12 Month Year Ago High Low

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

ACT directors are: Bob Bachani, Premium Contractor Supply; Bill Buhs, White Cap Construction; Terry Carson, Benchmark Concrete; Jerry Duffy, Duffy Electrical Contractors; Mark Flynn, Flynn Electric; Jim Horn, Border Construction Specialties; Doug Jones, Sabino Electric; Jim Meyer, F&M Electrical Contractors; Maggie Mozingo, Precision Tool; Chris Niccum, Sonoran Gardens; Paul Polito, Tucson Asphalt; Terry Rathbun, Sun Valley Masonry; Mark Schmidt, Romanoski Glass and Mirror; Tim Schutte, Earhart Equipment; and Leann Skalsky, GLS Concrete.

ACT represents about 295 specialty contractors and suppliers in the construction industry in the Tucson region.

Realtors ‘Seize the Day’ On Saturday (Oct.6), the Tucson Association of Realtors hosts a public event highlighting non-profit organizations called Seize the Day: Impact the Future.

It runs from 10 a.m.-2 p.m. at the Reid Park Bandshell, 1100 S. Randolph Way.

Now things are about to get really interesting: the long-anticipated 2012 fourth quarter.

The next six months is the time frame during which the destructive, crushing wave of home foreclosures was forecast to turn into a trickle. More than five years ago, local and national housing and financial analysts were pointing to this time as the beginning of the end.

For September, the drop in notices of trustee’s sales appears to be the first sign that it is happening. The 625 notices issued during the month were down 169 from August and down 172 from September 2011.

Year-to-date, the 7,583 notices issued were up 356, or 4.9 percent, over 2011 (see chart on next page).

Notices peaked this year in May at 984 and have declined somewhat erratically since then. The May total was nine more than the highest month of 2011 that peaked in January. This year’s monthly average is 843, compared with 803 in 2011.

Following the crash of the housing market, foreclosure notices in Pima County topped out at 12,184 in 2009. They deccreased slightly in 2010 to 11,663. Last year there were 9,433 notices and at the current pace, 2012 should end up within a few hundred — either more or less — of that total.

InsideTucsonBusiness.com

OCTOBER 5, 2012

31

INSIDE REAL ESTATE & CONSTRUCTION Trustee’s notices are the first step in the foreclosure process. The new data is from the Pima County Recorder’s Office.

Actual foreclosure sales, however, continue to move in the opposite direction. The 419 distressed sales in September were down 254, or 38 percent, from August. Yearto-date, the 4,344 foreclosure sales are down 1,269, or 23 percent, from 5,613 last year.

Foreclosure sales have averaged 483 per month this year, down 23 percent from an average of 624 over the first nine months of 2011.

Sales and leases • Compass RE LLC purchased 24,830 square feet at 3590 E. Columbia St. in Butterfield Business Center for $1.46 million from Applied Energetics Inc. Rob Glaser, Picor Commercial Real Estate Services, handled the transaction.

• Alta Vista Communities purchased a 6.65 acre lot at the northeast corner of West River Road and North Hansen Avenue, which is between Oracle Road and La Canada Drive, for $970,000 from Underdown/Foley Revocable Trust, The seller was represented

by Patrick Welchert, Picor Commercial Real Estate Services. The buyer was represented

by Jim Vincent, Carlier Company.

• Dahlstrom Investments LLC purchased a 5,525 square-foot free standing retail building at 4733 E. Broadway for $705,000 from JRM Dana LLC, represented by Pete Villaescusa and Jesse Peron, CBRE. The buyer was represented by Terry Dahlstrom, Volk Company Commercial Real Estate.

• Willway 2 LLC purchased Fontana Mobile Home Park, a 15-site facility on 0.9 acre at 5741-5755 S. Fontana Ave., for $220,000 from NPBK LLC. The property includes a 1,045 square-foot house. The transaction was handled by Chuck Corriere, Keller Williams Southern Arizona.

• Majabeju LLC purchased industrial property at 704 and 710 W. Green St. for $97,900 from Manuel B. Munoz Revocable Living Trust, represented by Chuck Corriere, Keller Williams Southern Arizona. The buyer was represented by Richard Gonzales, Coldwell Banker.

• Get Air Tucson LLC, a trampoline entertainment facility, leased 26,250 square feet at 330 S. Toole Ave., Suite 300, from Levin Family LP, represented by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services. The tenant was represented by Carter Randall, PPC Commercial.

• International Paper/Papeleria KIF de Mexico SA de CV leased 25,601 square feet at Parque Industrial San Carlos, Nogales, Sonora, from Operadora de Negocios Inmobiliarios SA de CV. The transaction was handled by Denisse Angulo, Picor Commercial Real Estate Services.

• Einstein and Noah Corp. leased 25,500 square feet of land at 4105 N. Oracle Road from Ricisaar Investments III LLC, represented by Rick Borane, Volk Company Commercial Real Estate. A building on the site that housed a Long John Silver’s restaurant will be demolished and replaced with a

Notices of Trustees Sales Pima County Recorder Foreclosures Jan. Feb. March April May June July Aug. Sept.

Oct. Nov. Dec. Total Mo. avg.

2007 346 276 305 300 396 377 419 503 394 483 540 475 4,814 401

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

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

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

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

2012 705 918 904 910 984 946 797 794 625

7,583 843

Pima County Recorder’s Office data

2,200 square-foot Einstein Bros. Bagel restaurant. The tenant was represented by Matt Milinovich, Strategic Retail Group.

• Spirit Halloween Superstores leased a 5,612 square-foot building at 4640 E. Broadway from Wright-Oracle LLC, represented

by Terry Dahlstrom, Volk Company Commercial Real Estate. The tenant was represented by Phoenix Commercial Advisors.

• Applied Energetics leased 3,650 square feet at 4585 S. Palo Verde Road, Suite 413, and 2,291 square feet at 3860 S. Palo Verde Road, Suite 313, from Presson Equity Partners LLC. The landlord was represented by Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services.

• Daeros Pacific Group LLC leased 3,600 square feet at 4401 E. Speedway from Rich Rodgers Investment Inc. The transaction was handled by Thomas Nieman, Brandon Rodgers and Rob Tomlinson, Picor Commercial Real Estate Services.

• Truly Nolen leased 3,175 square feet at 3275 W. Ina Road, Suite 135, from Caldor Investments, represented by Tom Nieman, Picor Commercial Real Estate Services. The tenant was represented by Brian Harpel, the Harpel Company.

• The Vitamin Shoppe leased 3,016 square feet at 698 E. Wetmore Road in Wetmore Plaza from Larsen Baker, self-represented by Andy Seleznov. The tenant was represented by Tom Woods, Colliers International.

• Lifetouch National School Studios leased 2,800 square feet at 2104 N. Forbes Blvd. from Cretcher Designs LLC, represented by independent broker Paul Rosado.

The tenant was represented by Bruce Suppes, CBRE. • Subway leased 2,400 square feet at 22nd and Craycroft Plaza from Larsen Baker, self-represented by Andy Seleznov.

• Brandon Cooley Agency leased 2,006 square feet at 655 N. Alvernon Way from Alvernon Place, represented by Andrew Sternberg and Robert Nolan, Oxford Realty

Advisors. The tenant was represented by Bruce Suppes, CBRE. • Slot Machine Store leased 1,843 square feet in Tucson Place shopping center at the northwest corner of First Avenue and Wetmore Road from Larsen Baker, self-represented by Andy Seleznov. The tenant was represented by Gary Emerson, GRE Partners.

• The Fix, a macaroni-and-cheese themed restaurant, leased 1,822 square feet at 943 E. University Blvd., Suite 115, from the Marshall Foundation, represented by Tamra Williamson, Bourn Advisory Services.

• Rock’N Babies LLC leased 1,800 square feet at 2840 W. Ina Road, Suite 156, from EJ Sonora Plaza LLC, represented by Craig Finfrock, Commercial Retail Advisors.

• Kumon Learning Center leased 1,800 square feet at 5675 N. Swan Road from Swan and Sunrise Associates LLP, represented

by Aaron LaPrise, Picor Commercial Real Estate Services. David Carroll, Romano Real Estate, represented the tenant.

• Morado Canyon Realty leased 1,745 square feet at 7930 E. Speedway in Speedway Pantano Square from Larsen Baker, self-represented by Andy Seleznov.

• Campbell Tucson Retail LLC leased a 1,700-square-foot building at 2553 N. Campbell Ave. from Greg Velasquez, Sciotto Family Trust and Edward E. Colson III Trust, represented by Rick Borane, Volk Company Commercial Real Estate.

• Carl Brownd DDS leased 1,686 square feet at 5099 E. Grant Road from TMC Holdings, represented by Tom Knox and Rick Kleiner, Picor Commercial Real Estate Services.

• Steven Shocat DC leased 1,600 square feet at 5813 N. Oracle Road from CAS Real Property, represented by Greg Furrier, Picor Commercial Real Estate Services.

• Mendoza Medical LLC leased 1,572 square feet at 2001 W. Orange Grove in Desert Life Medical Center from Healthcare Trust of America, represented by Howard Schwiebert, the Plaza Companies. The ten-

ant was represented by Doug Marsh and Virginia Land, Oxford Realty Advisors.

• Rosendin Electric Inc. leased 1,550 square feet at 1801 S. Alvernon Way, Suite 112, from Presson Midpoint LLC, represented by Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services.

• Jewish Federation of Southern Arizona leased 1,534 square feet at 190 W. Magee Road, Suite 162, from WVLC LLC, represented by Doug Richardson and Michael Gross, Tucson Realty & Trust. The tenant was represented by Rick Kleiner, Picor Commercial Real Estate Services.

• Marana Physical Therapy LLC leased 1,516 square feet at 9190 N. Coachline Blvd., Suite 100, Marana, from SJRJ Investments LLC, represented by Greg Furrier and Rob Tomlinson, Picor Commercial Real Estate Services.

• Interactive Controls leased 1,500 square feet at 4585 S. Palo Verde Road, Suite 413, from Presson Equity Partners. The transaction was handled by Rob Glaser, Picor Commercial Real Estate Services.

• Gilbert and Sherry Garcia leased 1,500 square feet at 1550 S. Craycroft Road from Craycroft Property LLC, represented by Joe Warren, Tucson Realty & Trust.

• New Looks Wellness Spa & Salon leased 1,500 square feet at 6860 E. Sunrise Drive, Suite 100, in Ventana Village Shopping Center from Westwood Financial Corporation, represented by Craig Finfrock, Commercial Retail Advisors. The tenant was represented by Jean Barkley of Oxford Realty Advisors.

• SFA LLC, doing business as Frank’s Smoke Shop, leased 1,200 square feet at North Pima Center on the southeast corner of north Thornydale and west Ina roads from North Pima Center LLC, represented by David Dutson of CBRE. • American Liberty Transportation leased 1,100 square feet at 3820 E. 44th Street, Suite 416 from RRL Inc., represented by Brandon Rodgers with Picor.

• SEU Enterprises, doing business as Sport Clips, leased 1,099 square feet at 5920 Arizona Pavilions Drive, Suite 105, in Marana from Az Pav LLC, represented by David Hammack of Volk Company Commercial Real Estate. The tenant was represented by Ben Craney of Bourn Advisory Services.

• EMG Enterprises leased 1,000 square feet at 8051 E. Lakeside Parkway from Tesoro Enterprises LLC, represented by Gary Emerson of GRE Partners.

• First Cut Cabinets leased 1,000 square feet at 2112 N. Dragoon, Suite 21 from Rich Rodgers South Inc., represented by Brandon Rodgers of Picor.

• Posh Paws Grooming leased 975 square feet at 60 N. Harrison Road, Suite A100 from Broadway/Harrison Albertson’s LLC, represented by Greg Furrier and Rob Tomlinson with Picor.

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

32 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Hotels can’t get you a newspaper, at any price You hear stories about how nobody reads newspapers anymore. If you’re a road warrior, it’s because nobody’s giving you a chance. Try to get a newspaper delivered to your room at a hotel these days.

That amenity went away in a hurry.

So fast in fact, a hotel I stayed at on a business trip to Milwaukee, Wis., this summer didn’t have the time to take a notation of the fee off my bill. Never DAVID HATFIELD got the newspaper delivered but I noticed — after I got home again, of course — the pre-printed information on the bill included a newspaper delivery fee. I hope it wasn’t much.

Another time on a leisure trip to San Francisco where my wife and I stayed in a new hotel where they talked us into a room with a view and access to their club — normally a $100 a night value that I got for $30. We took it for the view and that part of it was great.

The hotel didn’t deliver newspapers but I noticed the “club” listed them among the services. The first morning we were rushed and I never checked it out. The second morning, a Sunday, I went to the club and while my key didn’t work the woman who ran it gave me a newspaper. Later when I called the front desk, I discovered club access “wasn’t noted” on my reservation. I didn’t care. We got the view but I did want to find a way to get a newspaper in the morning.

She offered to refund the $30 a day I was paying. That wasn’t the solution I was expecting.

Last weekend when I went to the Arizona Newspapers Association conference in Scottsdale, I asked if I could get a newspaper delivered to my room. The fellow at the front desk said newspapers were only delivered on weekdays. Since this was going to be a Sunday, I offered to pay extra and I didn’t need a special newspaper, the Arizona Republic would be fine.

What’s that cost these days, $2? I offered $10, he said no. I even offered $20 to see what he would say. He wouldn’t/ couldn’t do it. And mind you, this was a conference of newspaper people. Was I the only one asking?

The next morning, the hotel managed to deliver the bill under my door. But no newspaper.

Award winners It’s self-serving, but Inside Tucson Business came away from the Arizona Newspapers Association with nine awards this year. Congratulations to reporter Patrick McNamara on receiving a first-place enterprise reporting award for his stories on Rio Nuevo. He also won a second place award for a feature story. Roger Yohem won a second place award for a Business Ink column about occupy Tucson.

Digital sales manager Jim Keyes also won a first place award for an online advertisement.

Overall, Inside Tucson Business won second-place awards for page design, reporting and news writing, news and copy editing and editorial page. We came in third best in the state among our peers in the 3,500 to 10,000 circulation category for overall excellence.

The awards allow me to publicly congratulate and thank our team for their fine work.

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

EDITORIAL

Surprised by Tucson’s poverty?

Come on now, nobody who lives here should have been surprised by the Census Bureau report that showed Tucson tied with two other areas for having the sixth- highest rate of poverty among the more than 100 metropolitan areas in the U.S. populations of over 500,000.

It’s laughable that there are people who are making excuses.

When interviewed, one executive at a social advocacy center said the high poverty rate could be fixed by raising the minimum wage. Except Arizona is one of 19 states, and the District of Columbia, that already has a minimum wage that’s higher than the federal minimum wage. And there are a whole lot of cities in the 31 states with a lower minimum wage that have a lower percentage of people living in poverty.

We also had to laugh at a letter to the editor that was printed in the Arizona Daily Star Monday (Oct. 1).

The the author told of seeing a Bentley and a Maserati on Sunrise Drive in the Catalina Foothills and found the parking lot full at the upscale La Encantada shopping center. Obviously there is money in the region.

“What illustrious politicians failed to incorporate the Catalina Foothills and Oro Valley decades ago? And more importantly ‘why?’” the letter-writer asked, we’ll presume seriously.

We’re going to guess the letter-writer was a newcomer.

Some politicians — most notably mayors of Tucson — had sought to try to incorporate more of the region within the city limits. Catalina Foothills residents fought annexation. Arguably, one of the reasons Oro Valley was incorporated in 1974 was to prevent it from becoming a part of the mess that even then was Tucson.

The real question is why would any taxpaying resident want to become a part of Tucson?

The political power that runs Tucson likes its people

poor. That way, they’re more beholden to the power structure and will keep them in office.

Just look at the way the City of Tucson this year is subsidizing Sun Tran to the tune of $39 million. Because of that subsidy, the system can sell a monthly bus pass for as low as $15 for unlimited rides. Just think, that works out to less that 38 cents a ride for a person traveling twice a day for 20 days a month. It’s a good deal. The catch is you just have to make sure you don’t earn a decent wage.

The city also is famous for funneling money into pet projects in the wards of the power structure. It’s one thing to pay taxes to support a community as a whole but nobody who strives to achieve success wants to participate in the city’s Robin Hood schemes meant to keep certain politicians in office while their subjects are kept poor and beholden.

And who’s to say the “government will take care of you” attitude didn’t contribute to the culture in the City of Tucson’s Department of Transportation? Last month, it was revealed that city workers were using city equipment and material to go out and do private side jobs for their friends and relatives.

Tucson’s leaders apparently never heard the old proverb “Give a man a fish and you feed him for a day.

Teach a man to fish and you feed him for a lifetime.”

The Tucson Weekly had a report in June 2011 that started out, “If poverty were a disease, Pima County officials would have declared an epidemic by now.” That report included the statistic that one in five residents of the region are getting by on incomes of less than $10,890 a year for an individual. It was $22,350 for a family of four.

Now that the Census Bureau has told the entire country about poverty in the Old Pueblo, we can point out that those who are feigning surprise are a large part of the problem.

InsideTucsonBusiness.com

OCTOBER 5, 2012

33

OPINION WAKE UP, TUCSON

This is what we’ve been talking about. Consider yourself warned.

In past columns we’ve taken you on a journey of how this region actually works.

We’ve developed the characters, told the stories and pointed out at pivotal moments when given the opportunity to move forward, Tucson and Pima County leadership took a bizarre turn. So now it’s your turn.

The way to reverse the tide of failure is to change leadership. If we miss this opportunity to move our region into a new direction, the Census Bureau’s ranking of Tucson as having the sixth highest rate of poverty of any major metro area in the U.S. will only be the beginning of what will surely get worse.

As will the ranking by the Ewing Marion Kauffman Foundation and Thumbtack.com putting Tucson among the five worst cities for its small business environment.

Some might see the various paths ahead and be able to make changes midstream, but that’s rare. Most of us have endured enough pain to change. Have you enough pain yet?

Critical moment: 1987 A University of Arizona political science professor, Tom Volgy, was elected Tucson mayor in 1987, following a successful 16-year run under the leadership of Mayor Lew Murphy and City Manager Joel Valdez.

Much of what has resulted in one out of five residents living in poverty — and mind you that’s the metropolitan region as a whole, inside the city it’s probably an even higher

percentage — can directly be attributed to the kind of thinking that was ushered in under Volgy.

He established the city’s Department of Neighborhood Resources, JOE HIGGINS which organized, formalized and empowered a process that allows the flimsiest of objections by one or two people to derail a project.

The Volgy administration told IBM its production facilities weren’t CHRIS DeSIMONE welcome here. A similar message was sent to Motorola. At a time when Burr-Brown, Texas Instruments, Honeywell and others were looking to Southern Arizona as a possible next Silicon Valley, Tucson’s elected leaders said no.

It was Volgy who also thought it would be a good idea to put government in charge

of economic development and this region has struggled ever since.

Critical moment: 1996 In 1996, the Pima County Board of Supervisors took on a new majority and a new tone with the election of Sharon Bronson to join Raúl Grijalva and Dan Eckstrom. The following year voters approved a bond package that included $230 million to buy up open space. More than $300 million was spent in and around the county’s hospital, then known as Kino Hospital. It included a professional baseball there instead of investing in downtown revitalization. During the first decade of this century, the bureaucracy of county government grew from $770 million to more than $1.4 million.

Two powerful Democratic political machines got measurably stronger in 1996 and they have flourished by protecting the politically connected punishing those who refuse to adhere to what they want.

But since then, outside capital and investment money has stopped coming. Our tourism industry is struggling. Resorts have gone through bankruptcy or foreclosure. Roads are crumbling and government debt grows.

Critical moment: 2012 This year’s election is as big as most of us in southern Arizona will see in our

lifetimes. The electorate is uneasy. The Democratic brand is bruised and battered, locally and nationally. We’re living the failures — high poverty and few new jobs, just 800 created in two years, according to UA economist Marshall Vest, who reports the Phoenix metro has added 69,000 jobs.

A shadow group manages to claim it speaks for all of Tucson in persuading the Air Force to build an F-35 jet fighter training facility at Luke Air Force Base near Glendale instead of here. And, according to a court ruling, Pima County overstepped its authority as it delays development of the Rosemont Copper mine.

The community we live in is approaching a point where if we continue down this path, there will be no turning back.

That will happen if on Nov. 6, voters don’t make changes to the Pima County Board of Supervisors. And if we don’t make those changes, it will be your fault. We either do it now, or never.

If we miss this opportunity, will the last one out, please turn out the lights?

Contact Joe Higgins and Chris DeSimone at wakeuptucson@gmail.com.

They host “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM. Their blog is at www.TucsonChoices.com.

SPEAKING OUT

Prop. 115: Choosing judges on merit is good, so why change it?

Proposition 115, judicial selection, was referred to the Nov. 6 ballot by the Legislature. The proposal would change the way the Judicial Nominating Commission (JNC) is appointed, giving the governor more power over who is selected.

The state constitution provides for a merit selection system for judicial appointments to the state Supreme Court, the Appellate courts, and trial courts in counties with populations of at least 250,000, which has been Pima and Maricopa counties and now, includes Pinal County. Voters in the state’s other 12 counties elect their judges to four-year terms.

In the merit system, a non-political judicial screening commission conducts the judicial nomination process and forwards nominees to the governor for appointment.

If Proposition 115 is passed by voters, the governor would appoint 14 of the 15 members of the Judicial Nominating Commission and the Arizona Bar Association would appoint one. The Legislature would be able to do its own additional judicial retention reviews if the lawmakers choose to do so.

Additionally, the governor would receive eight nominees from which to make each

CAROL WEST

judiciary appointment rather than three, as is currently the case.

Terms for Superior Court judges would increase to eight years from four years and terms of Appellate Court judges’ would increase to eight

years from six years.

First, some background on the current merit system, which was part of an ammendment to the constitution passed by voters in 1974, that applied to the state’s two largest counties, Pima and Maricopa. The intent was to remove politics from the judiciary branch.

The merit selection process is headed by a Judicial Nominating Commission that includes 10 members of the public appointed by the governor and five attorneys appointed by the Arizona Bar Association. The commission is confirmed by the state Senate.

Potential applicants for the judiciary complete a lengthy application process. They apply to the Judicial Nominating Commis-

sion where they are interviewed, and their backgrounds are thoroughly investigated.

The commission seeks potential judges with a belief in judicial independence, impartiality and a professional demeanor.

The commission forwards three names to the governor who then interviews them and makes the final selection.

Judicial oversight doesn’t stop there.

There is a citizens Judicial Performance Review Commission appointed by the governor. The performance review commission encourages public input and interviews the judges. Information it gathers is posted on a website accessible to the public.

Every four years voters have the opportunity to vote on retaining Superior Court judges. The term is six years for Apellate Court judges.

The Judicial Conduct Commission is a disciplinary body that oversees the judicial ethics standards. Citizens can bring complaints against a judge to the conduct commission. The Supreme Court can remove a judge for just cause.

These commissions and the merit selection ensure that Arizona’s judiciary is well-qualified and adheres to the highest standards. The system has been a model for

other states across the country.

Legislators say Proposition 115 is a “compromise” that would delay future legislative moves to propose a repeal of the entire merit selection process.

The Judicial Nominating Commission also nominated people to the independent redistricting commission. Legislators believe if the governor had more authority over that, there would have been less friction in the process this year.

Supporters of Proposition 115 argue the Bar Association has too much control over the judicial selection process. The governor is accountable to the public in a way the unelected members of the commission are not.

Oppontents of Proposition 115 say the changes “inject politics into a judicial system that must remain impartial.”

In an interview with Phoenix TV station, former Supreme Court Justice Sandra O’Connor talked about the merit system and it’s effectiveness, using an old cowboy expression: “If it ain’t broke, don’t fix it.”

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.

34 OCTOBER 5, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Hours after school can be as important as hours in class extension of Now that the school year in full swing, in-school educaparents may feel relieved to have finished tion that support their annual to-do lists of new clothes and learning, academic school supplies. One critically important achievement and item too often overlooked, is determining personal growth how to best use the hours a child spends and development. out of the classroom.

Nine out of 10 Research consistently shows that quality Americans believe afterschool programs result in improved all youth should school attendance, higher academic MELANIE MCCLINTOCK have access to achievement in reading and math, inafterschool creased levels of student engagement and programs, but two-thirds say they have motivation to learn, higher self-esteem, trouble finding local programs. reduced delinquency and greater likeliA new resource available to Arizona hood of high school graduation. parents, children and families is the state’s Quality afterschool programs reaffirm first comprehensive Web-based bilingual what is taught in school by exposing directory of afterchildren to experienschool and out-oftial learning and areas s BIZ FACTS school programs. The of interest not s Afterschool necessarily possible A Find a complete Quality Afterschool Arizona Directory, developed, in the daily classroom D Program Check List as well as the organized and environment. o Arizona Afterschool Directory online managed by the The National m at www.azafterschool.org.

Arizona Center for Youth Violence A Afterschool ExcelPrevention Resource A lence — www.azafterschool.org — includes Center reports that 49 percent of children consistently updated information about not in afterschool programs are more likely hundreds of diverse programs. to use drugs and 37 percent are more likely The directory lets parents search for proto become teen parents. grams by curriculum (educational focus, Beyond the safety factor, afterschool arts, sports, science, technology, life skills, programs are a logical, strategic and vital

socialization, special needs, tutoring, mentoring, homework assistance etc.), location, type (before school, weekend, or school vacation), cost (free, fixed fees, JOHN PEDICONE sliding scale, available financing options, DES subsidy, etc.); language and other information.

Another important tool for parents and children — who certainly should be involved in the decision-making process — is to know the right questions to ask program managers, administrators and providers.

Questions should provide insight into the overall program itself, the physical space and facility, social and emotional development goals and strategies, academic enrichment tactics and the staff.

Among other important questions: • What is the program’s mission and philosophy and is the program licensed?

• What is the program fee and is financial assistance available?

• Does the program serve children with special needs?

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• Are there quiet spaces for reading, homework and when a child may want to be away from the larger group?

• Do children and parents have a role in planning program activities, content and schedule?

• Are children encouraged to try new activities and build new skills that may be unfamiliar to them?

• How are children encouraged to resolve differences among themselves?

• Does the program provide a rich, informal learning atmosphere that expands on and reinforces concepts learned in the classroom?

• Is homework assistance provided?

• Is technology available and what meaningful role does it play beyond the playing of video games?

• Is consistent, meaningful feedback provided to parents about a child’s growth and development?

Don’t be afraid to ask tough questions.

After all, these are critically important hours for your child that may impact not only their success in school but help frame their lives as adults.

Melanie McClintock is executive director of the Arizona Center for Afterschool Excellence. John Pedicone is superintendent of Tucson Unified School District.

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INSIDE TUCSON BUSINESS

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