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LIVING IN A MATERIAL WORLD ... OF PLANTS Sonoran Gardens digs business of outdoor landscape construction PAGE 14

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • OCTOBER 19, 2012 • VOL. 22, NO. 20 • $1

Ahwooga.com courts car buffs

DataDriven

Online portal for auto parts gears up Page 4

UA Research Data Center revs up university’s computing power

PAGE 3

Downtown diners to eat more ‘local’ Duo wants foods with local connections Page 5

Back in the saddle again

Gordon Bates

New home builders singing a new song Page 19

Ballot propositions reflect the nation’s mood By Daniel B. Wood The Christian Science Monitor Proponents call it “direct democracy,” opponents call it “vigilante democracy” — and political scientists call it a vibrant part of American democracy. Arizona’s nine propositions on the Nov. 6 ballot, are among a total of 174 propositions going before voters in 37 states — the most in six years, though well below the record numbers of the late 1990s and early 2000s. The slate of initiatives points to several trends across American politics. For one, the number of initiatives

put on the ballot by citizens (as opposed to legislatures) has dropped, suggesting the weak economy is hampering grass-roots efforts. Meanwhile, in “a symptom of the polarization in American politics,” 12 popular referendums qualified for the November ballot, noted Jennie Drage Bowser of the National Conference of State Legislatures to Governing magazine. Referendums and initiatives serve as a Rorschach test for what is on voters’ minds. Medical marijuana initiatives will take another step this year when voters in three states — Colorado, Oregon and Washington — consider making them the first in the nation

to legalize marijuana for recreational use. Polls in Colorado and Washington indicate the measures have majority support. An effort in Maine is attempting to make that state the first to legalize same-sex mariage by ballot initiative. Among propositions in other states: • Oklahoma voters will consider a measure that would prohibit discrimination or preferable treatment based on race, sex, ethnicity, and national origin. It would undercut some affirmative-action programs in the state, similar to a measure that’s already been passed in Arizona and

four other states. • In Massachusetts a proposition would allow a person diagnosed as terminally ill by physicians to be given a lethal injection. Washington and Oregon have passed similar measures. • For the third time, a California proposition will try to prohibit union dues from being used for political purposes without explicit authorization of members. Similar measures were defeated in 1998 and 2005. • Another California proposition would abolish capital punishment in the state, converting existing deathrow sentences to life imprisonment without possibility of parole.


2 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

OCTOBER 19, 2012

3

NEXT GENERATION

Impacts of UA Research Computing Data Center could go beyond academics

UA ranks No. 19 in basketball spending The University of Arizona spent $6.9 million in 2011 on its basketball program and took in $21.2 million in revenue, according to a study by the Memphis Business Journal of data compiled by Equity in Athletics. The amount of money spent puts the UA at No. 19 in the nation. The UA’s record that year was 30-8, one game short of making it to the NCAA’s Final Four. The study found that the amount of money spent on basketball doesn’t necessarily correlate to a successful program. While the UA’s program is successful, Arizona State University spent $6.2 million on its basketball program in 2011 and took in $8.5 million but ended up with a won-loss record of 12-19. Duke University, which lost to the UA in the Sweet 16 in 2011, spent the most on its basketball program that year, $13.8 million.

Gordon Bates

Univ. of Phoenix to cut 300 jobs in Arizona

Computers at the University of Arizona Research Data Center stand on display behind glass. The new center has greatly increased the university’s research computing capacity.

By Patrick McNamara Inside Tucson Business In the early days of the Internet, some commentators proclaimed the age of the supercomputer had died and the age of the personal computer was ascendant. But as more data gets digitized and compiled, supercomputers might become more relevant today than ever before. The University of Arizona has unveiled its updated supercomputer facility, the Research Computing Data Center, which

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has greatly increased the capacity in highthroughout computing, high-performance computing and data storage. “Research computing here on campus has gone from less than a teraFLOP to 50 teraFLOPS and in 2013 will be over 300 teraFLOPS,” said Joellen Russell, associate professor in the Department of Geosciences at the University of Arizona. Russell also heads the Research Computing Steering Committee, which is charged with establishing a governance plan for the center.

For the uninitiated, teraFLOPS refer to a measure of computer performance called floating-point operations per second or FLOPS. In supercomputer speak, one teraFLOPS means the capacity of a computer to perform a staggering 1 trillion operations per second. It’s that computing capacity that has researchers like Russell and others at UA excited. “As with everything, technology has become a dependant factor in research,” CONTINUED ON PAGE 6

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In an effort to save $300 million, University Phoenix says it will close 115 campuses and learning centters and eliminate 800 positions. Parent company Apollo Group Inc. said the campuses aren’t necessary because a majority of its 328,400 students nationwide take classes online. The learning center at 870 W. Shell Road, Nogales, is among those that will be closed. And while the Southern Arizona campus, 300 S. Craycroft Road, and the learning center, 555 E. River Road, will remain open, the company said that just under 300 of the 800 positions to be eliminated will be in Arizona. After the closures take effect, University of Phoenix will have 112 locations in 36 states. The centers that will remain open are those that require hands-on learning programs, such as nursing and counseling. On Tuesday, Apollo Group reported that for the quarter ended Aug. 31 it had net income of $74.2 million from $996.5 million, which was down $183.9 million in income from $1.1 billion in revenue for the same quarter a year ago. The quarter marked the end of the fiscal year for Apollo. Total income for the year was $417 million on $4.25 billion revenue, down from fiscal year 2011’s total of $535.8 million income on $4.7 billion revenue. Total enrollment was down 13.8 percent.

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

6 7-9 12 13 13 14 15

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

16 18 19 20 20 23


4 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

NEWS

Ahwooga.com seeks share of auto parts sales with online portal

The 261,000 square-foot manufacturing facility built for Weiser Lock and last used by Pella windows, and two other large industrial properties are in escrow and expected to close by the end of the year. Two commercial real estate companies confirmed the pending sales but said the buyers are not being publicly identified at this point. The largest facility, at 6700 S. Pella Drive off Valencia Road west of Interstate 19, has been vacant since Pella Corporation shut down its vinyl door and window manufacturing operations there in November 2008. The building was part of the 25.7-acre site Pella had purchased two years earlier. This time it was on the market listed for $9.9 million. Also in escrow is the 85,000 square-foot call center building at 3350 E. Valencia Road that had been used by American Airlines, which shut down the Tucson call center in August. The building is part of a 14.47-acre site. American had opened the building in 1991. It was listed for sale at $7.286 million. The third property is a 19,980 square-foot manufacturing building at 6393 S. Campbell Ave. that formerly housed LeTourneau Technologies, which specialized in the mining, steel and forestry markets. The three sales are positive indicators for the region’s commercial real estate market. As of Sept. 30, there was 35.5 million square feet of industrial space in the Tucson-area market. If all three sales close, the transactions will about double the absorption of all the industrial space year-to-date. That total is 329,079 square feet, according to CBRE.

Entrepreneurs invited to IdeaFunding Pitch Entrepreneurs seeking capital, customers or exposure for their ideas are invited to attend IdeaFunding’s Pitch Arizona on Oct. 25 at Tucson Marriott University Park, 880 E. Second St. IdeaFunding works to advance and stimulate entrepreneurial opportunities through networking, business integration, and knowledge-sharing. Pitch Arizona is an event that helps entrepreneurs find the right resources, partners, and capital to execute their business ideas. Pitch Arizona is known for its large turnout of investors, mezzanine lenders, corporate venture capitalists, executive managers and entrepreneurs. The event begins at 1 p.m. and will feature a discussion with David Allen, executive director of Tech Launch Arizona, at 5:15 p.m. Register online at www.regonline. com/PitchArizona2012 or (520) 621-4823.

Clayton R. Norman

Three large industrial properties in escrow

Joe Chirco, left, owner and founder of Ahwooga.com, and Patrick Wood, project manager, have relaunched their direct buy online marketplace for auto parts.

By Clayton R. Norman Inside Tucson Business Disgruntled with paying high listing fees and dealing with clunky processes to sell items on eBay, Tucsonan auto-parts dealer Joe Chirco launched his own online marketplace, Ahwooga Automotive Market. Last month, he streamlined it and relaunched it. Chirco originally launched the site — www.ahwooga.com — in early 2010 and built it up to about 5,800 merchants and buyers but with that volume the site’s performance suffered. “Things were going great and then the site performance began to go down,” Chirco said. “We realized we were totally on the wrong platform, so we decided that there was only one way to fix this thing and that was to rebuild the entire platform knowing what we can do with it now.” The new site, released Sept. 26 after six months of reworking, is focused on easeof-use for sellers as much as buyers. “If you don’t have any sellers you don’t have any buyers,” said Chirco who charges no membership or listing fees. The site collects 4 percent of the total cost of each order, including shipping. As of the beginning of this month, Ahwooga had 53 “garages,” individual seller’s pages, including listings for vintage auto

parts, snowmobile accessories and watercraft parts. Chirco said the site is dedicated to automotive parts and accessories, or “anything that moves you.” He expects to have 350 to 400 “garages” added to the site by the end of the year. Ahwooga also includes social network interfaces so users can share “likes,” wishlists and comments via Twitter, Facebook and Google Plus as well as an Ahwooga blog embedded in the site with regular “car guy” themed updates. The site is a “direct buy” site with no eBay-type auctions and, Chirco says, easy and direct lines of communication for sellers to connect directly with their buyers. Patrick Wood, project manager for Ahwooga, said sellers should appreciate features like bulk upload and item editing tools and a feature for creating shipping templates which were missing from the site’s beta run. “Not only can our users easily connect with other buyers and sellers, but they can also see who else is interested in those same products, it’s all integrated within the site,” Wood said. To address the site performance issues in the beta run of Ahwooga.com, Wood says the new site is hosted using Amazon’s cloud computing service. “This way we have endless expansion

when we need it,” said Wood. “And the customers feel that too, when they want to bulk upload or bulk edit their stuff. They don’t have to do it one item at a time like they had to on the old site.” The U.S. Department of Commerce reported that aftermarket auto parts sales totaled between $62 billion and $78 billion in 2010. The same report noted that the auto parts sales industry accounted for some 462,300 jobs nationally in 2010. Figuring the auto parts sales market in the U.S. is somewhere between $150 billion and $200 billion annually, Chirco and Wood say they want to capture about 0.25 percent of that by facilitating $400 million in annual transactions. Given Ahwooga’s 4 percent transaction fee, that translates into $16 million in annual revenue for the company. They estimate eventual traffic-driven advertising revenue at a potential of $8 million annually. Chirco said the next step for Ahwooga. com is to hit the trade show circuit with a marketing booth to start drumming up community members. At the end of this month, he said they will be attending the Specialty Equipment Market Association show in Las Vegas. “You don’t have to be in Silicon Valley to start a marketplace,” Chirco said.


InsideTucsonBusiness.com

OCTOBER 19, 2012

5

NEWS

New downtown restaurants to expand the ‘eat local’ philosophy By Patrick McNamara Inside Tucson Business

Good News Openness in government The City of Tucson has begun an open government initiative that seeks to provide better and faster access to public records and increased transparency. The effort includes compiling records from specific departments into searchable databases. The first of these will include transit information, crime data, business licenses, traffic incident locations and city employment records. This is a good development not just for those of us in the media, but for residents everywhere who want to know how local government spends their money but might not know where to begin looking for the information.

BIZ FACTS

Sleeping Frog Farms 4510 N. Cascabel Road, Benson (520) 212-3764 sleepingfrogfarms.com Criollo criollolatinkitchen.com Brix brixflagstaff.com Diablo Burger www.diabloburger.com

The Tucson

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

A pair of Flagstaff restaurateurs looking to expand have picked downtown Tucson for their new eateries. Derrick Widmark, owner of Diablo Burger, and Paul Moir, owner of Brix and Criollo, each plan to open restaurants in the Rialto Block on Congress Street, adding to the burgeoning dining scene downtown. Widmark plans to open a second Diablo Burger and a bar in the Rialto Block called The Good Oak Bar. Moir plans on opening a restaurant called Proper. Both intend to open by the spring. “Trying to find a space in Phoenix was tough, it’s really competitive and it’s a huge market,” Moir said. Widmark, too, had difficulty in the Phoenix area, putting 10,000 miles on his car driving around and looking for a location before he decided to head further down Interstate 10 to Tucson. But it’s more than just choosing Tucson over the Phoenix area that makes what they’re doing remarkable — it’s the philosophy both owners have when it comes to food and supporting the local economy. “Our intention is to connect community to place and to the landscape through food, and we do that by forging relationships with the best local producers,” wrote Widmark in an email. Widmark requested to conduct an interview via email. For several years restaurants across the country have increasingly looked to nearby farms, ranches and fishermen to fill their menus with foods that have some connection to the local economy. In other places such as San Francisco, New York and the Midwest where agriculture and animal husbandry are common, the local food movement has been easy to tap in to. But in Southern Arizona, it can be a challenge to source local food products. The largest agricultural product by far in Southern Arizona remains cotton. Widmark said restaurants in other areas of the country can easily source most of their ingredients from within a 50-mile radius. The vastness and relative scarcity of agriculture in Arizona has required Diablo Burger to expand its definition of local to include a 250-mile radius. True to the local ethos, Diablo Burger uses beef from a partnership of two ranches east of Flagstaff called the Diablo Trust, which Widmark described as one of the most “progressive and impactful collaborative conservation groups in Arizona.” “This is landscape-scale conservation that you can taste, and the importance of

This Week’s

Clay Smith harvesting at Sleeping Frog Farms near Benson.

supporting producers who are good stewards of our lands is critical to DB,” he said. Diablo Burger has begun to build relationships with other small-scale, conservation-minded ranches in Southern Arizona as well. They plan to source beef from producers like Dennis Moroney’s Sky Islands Brand, the Malpais Borderlands Group, the Altar Valley Conservation Alliance and Double-Check Ranch. To this end, both Widmark and Moir have sought help from Gary Nabhan, a research scientist at the Southwest Center of the University of Arizona and local agriculture advocate. “Within easy reach of Tucson, we now have Sleeping Frog Farms, Avalon Gardens, Harris Heritage Farm, Cross-U Ranch, Double Check Ranch, La Querencia Organics and my own orchard, Almunia de los Zopilotes, which alone offers 70 varieties of fruits and nuts,” Nabhan wrote in an email in response to questions from Inside Tucson Business. At the time of the interview, Nabhan was travelling outside of the country and unable to speak on the telephone. Nabhan has written and edited numerous books on regional food and agricultural traditions. Part of advocating for local products, Nabhan said, means supporting local businesses and improving the local economy. “Study after study has shown that linking new food micro-enterprises to independently-owned bakeries, farms, or-

chards and ranches is the quickest means of stimulating economic recovery in communities like ours,” he said. C.J. Marks, one of the people behind Sleeping Frog Farms, a growing force on the local agriculture scene, said interest in local products has been on the rise. The farm expanded last year from its few-acre plot on the northwest side to a 75acre parcel along the San Pedro River near Cascabel. Along with the expansion has come an increasing repertoire of restaurants and community-supported agriculture programs the farm serves with heirloom and specialty vegetables not usually found in grocery stores. “These are products the big commercial farms aren’t going to spend their time on,” Marks said. He said that supporting local agriculture not only can help locally owned businesses like Sleeping Frog Farms, but help to increase food security by lessening the reliance on products grown in foreign countries or areas distant from Tucson. Moir agrees that supporting local agriculture can increase food security, but said there’s a much more practical reason to buy local. “I just think it’s better food,” Moir said. “It’s just more interesting.”

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

Lodging looking up Some positive signs for the hospitality industry. Although market reports indicate room occupancy rates for the month of September were some of the lowest ever seen by some establishments — did someone say the economy is recovering? — October numbers are showing a definite uptick. It’s also interesting to note that developers planning a couple of smaller hotel projects, one next door to the Marriott University Park Hotel near the University of Arizona and another at the east end of downtown, say they have interest from multiple brands. When asked to expand on that, one developer said he could probably get at least five good proposals from well-known brands, some already in the market and others that would be new.

Airport traffic Despite Frontier Airlines’ ending all service in May and a significant reduction in available seats by US Airways, passenger traffic at Tucson International Airport is still running slightly — just. 0.2 percent — ahead of 2011 through the first eight months of the year. But the crystal ball gets a little fuzzy looking to next year. As part of preparation for its fiscal year budget, which took effect this month, the Tucson Airport Authority asks airlines to estimate plans for the coming year. No airline forecast a major increase in service but most said they anticipated relatively minor adjustments. United, however, told airport officials it anticipates a doubledigit percentage cutback. Airport officials, caution against reading too much into the estimates. The airlines aren’t held to them. They’re really used to calculate a balanced budget for the airport’s operations.


6 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES Chapter 11 Business reorganization Sierra Industrial Park Delaware LLC, 4750 N. Oracle Road, Suite 210 (principal assets at 7109-7245 E. Golf Links Road). Principal: Ebby Shakib, managing member. Estimated assets: More than $1 million to $10 million. Estimate liabilities: More than $1 million to $10 million. Largest creditor(s): Schedule not filed. Case No. 12-22496 filed Oct. 12. Law firm: Mesch Clark & Rothschild 26 Palms Delaware LLC, 4750 N. Oracle Road, Suite 210 (principal assets at 7109-7245 E. Golf Links Road). Principal: Ebby Shakib, managing member. Estimated assets: More than $1 million to $10 million. Estimate liabilities: More than $1 million to $10 million. Largest creditor(s): Schedule not filed. Case No. 12-22498 filed Oct. 12. Law firm: Mesch Clark & Rothschild

FORECLOSURE NOTICES Shannon Partners LLC 37 acres at Cortaro Farms Road and Shannon Road, known as Villas on Shannon Ridge (not built) 85704 Tax parcel: 225-54-0010 through 225-54-5020 Original Principal: $55,000,000.00 Beneficiary: Cole Taylor Bank, Burbank, Ill. Auction time and date: 10 a.m. Dec. 31, 2012 Trustee: John S. Craiger, Quarles & Brady, 2 N. Central Ave., Phoenix Stone Canyon LLC 14330 N. La Cholla Blvd., Oro Valley 85755 Tax parcel: 219-15-0010 Original Principal: $300,000.00 Beneficiary: Textron Financial Corp., Alpharetta, Ga. Auction time and date: 2 p.m. Jan. 4, 2013 Trustee: Kevin J. Morris, Greenberg Traurig, 2375 E. Camelback Road, Suite 700, Phoenix Hilltop Haven LLC 16740 N. Twin Lakes Drive, Catalina 85739 Tax parcel: 222-10-0450 Original Principal: $651,000.00 Beneficiary: Wells Fargo Bank, Phoenix Auction time and date: 11:30 a.m. Jan. 4, 2013 Trustee: Wade M. Burgeson, Engelman Berger, 3636 N. Central Ave., Suite 700, Phoenix

LIENS Federal tax liens Hunter’s Tile Interiors LLC and John Perquiera, 4115 W. Ironwood Hill Drive. Amount owed: $24,771.31. KGVY LLC, PO Box 767, Green Valley 85622. Amount owed: $56,687.00. Pizzeria La Ferlita Inc., 446 N. Campbell Ave., Suite 100. Amount owed: $148,059.50. Montgomery’s Irish Pub and B&E Kline Properties Inc., 9155 E. Tanque Verde Road. Amount owed: $45,961.33. Al-Munt Corporation, 3720 W. Ina Road, Suite 134. Amount owed: $4,426.78. Innovative Landscapes Inc., 7709 N. Jensen Drive. Amount owed: $1,586.49. Wa:K Snack Shop and Simon J. Ignacio, 1909 W. Koli Ki Wog. Amount owed: $5,390.72. Checkered Flag Construction LLC and Armando R. Rico, 3042 W. Camauba St. Amount owed: $3,340.12. CDK Enterprises Inc., 10645 N. Oracle Road, Suite 121319, Oro Valley. Amount owed: $1,791.39. Plants of Distinction Inc., 6930 E. Tanque Verde Road. Amount Owed: $7,439.15. Southern Arizona Air LLC and Mahmood Basharat, 702 E. Fair St. Amount owed: $9,108.48. Meyer’s Creative Concepts Paint & Body LLC and Michael Holmes, 2550 E. Grant Road. Amount owed: $46,599.39. Floors To Go of Tucson LLC and Suzanna T. Harrison, PO Box 89655, 85752. Amount owed: $149,783.26. Tortilla Factory De Tucson and Juan M. Villalva and Maria I. Villalva, 1755 W. Ajo Way. Amount owed: $8,239.41. Tami’s Personalized Care and Tamra Diaz, 8670 E. Olympic Club Circle. Amount owed: $4,644.05. Cray’s Mobile Home Service and Richard J. Cray, 2465 W. Placita Algodem. Amount owed: $1,957.61. F&J Restaurants LLC and Jeffrey Fuld, PO Box 262, 85702. Amount owed: $13,462.58.

State liens

CONTINUED FROM PAGE 3

(Liens of $1,000 or more filed by the Arizona Department of Revenue or Arizona Department of Economic Security.) Romisco Sign Systems LLC, 214 Tacoma St., Sierra Vista. Amount owed: $5,425.11. Chandler Hill Partners, 2450 N. Pantano Road. Amount owed: $1,218.21. Parties Plus Tucson LLC, 3510 S. Campbell Ave. Amount owed: $6,476.55. Unicorn Sport Lounge and Lazy B&G Ent LLC, 8060 E. 22nd St., Suite 118. Amount owed: $1,391.44. TBJ Construction LLC, 5951 E. Linden Place. Amount owed: $16,056.51. Vistoso Golf Course LLC, 955 W. Vistoso Highlands Drive, Oro Valley. Amount owed: $26,746.86. Amado Mini Market and Karissa G. Nava, 2403 E. Second St. Amount owed: $27,207.90. IRI Sabino Springs Golf Course LLC, 1700 Country Club Drive, Plano, Texas. Amount owed: $5,933.37. San Ignacio Golf Course LLC, 1700 Country Club Drive, Plano, Texas. Amount owed: $3,049.29. Boca and Boca LLC, 828 E. Speedway. Amount owed: $8,593.84. Pappoule’s and Pappoule’s Electra Investments Inc., 4500 N. Oracle Road, Suite FC06. Amount owed: $42,124.17. Guiseppe’s and CVR Holdings LLC, 6060 N. Oracle Road. Amount owed: $26,674.94.

said Michele Norin, chief information officer and executive director of University Information Technology Services. “Having an asset like this furthers that research work.” As more and more information becomes digitized, the challenge of sorting, storing and making sense of information grows greater. Russell, for example, works in climate research and modeling, which involves running large and complex mathematical calculations or computer codes. The computing capacity the new center provides is relevant to researchers across most of the hard-sciences including those in astronomy and planetary sciences, biological sciences and agriculture because supercomputers, like those at the Research Computing Data Center, can process massive calculations and help researchers analyze data in ways that would not be possible using conventional computers. The power of large-scale computing systems like that at the University of Arizona is so great as to be almost incomparable to a standard PC. Home computers typically have about two processors, which works fine for normal functions. The machines at the Research Computing Data Center hold the equivalent of 6,000 processors and have the capacity for expansion. The storage space available at the new center also dwarfs that of a home or business computer. Storage on a PC is usually measured in terms of gigabytes, while at the UA center storage goes into petabytes, or more than a quadrillion bits of data, according to the research computing website. By comparison, that’s more than 500 million mp3 songs or enough storage to hold a 26-year long playlist of high-definition movies, also according to the university. “Although I haven’t been here long, it’s clear to me that the University of Arizona has a distinct strength in large-scale computing,” said David Allen, the university’s new executive director for Tech Launch Arizona at the Office of Technology Transfer. Allen said the center’s capabilities establish the university as a player in the field of large-data processing and management. The computers themselves, housed in the basement of University Information

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

Able Tucson 362, 702 E. 17th St., against Southwest Fiberglass LLC, 4798 S. Julian Ave. Amount owed: $8,486.29. Able Tucson 362, 702 E. 17th St., against Southwest Fiberglass LLC, 4798 S. Julian Ave. Amount owed: $8,493.69. Brown Wholesale Electric, 3425 E. Van Buren St., Suite 140, Phoenix, against Sierra Bravo Properties, 3230 W. El Camino Del Cerro, and Farwest Development & Construction of the SW LLC, 2231 W. Ina Road. Amount owed: $40,821.23. Smith Pipe and Steel Co., 735 N. 19th Ave., Phoenix, against Central One Inc., 5735 N. 25th St., Phoenix, and Walmart Stores, 2001 SE 10th St., Bentonville, Ark. Amount owed: $4,542.00. Smith Pipe and Steel Co., 735 N. 19th Ave., Phoenix, against Fidelity National Title Agency Inc., 4549 E. Fort Lowell Road, and Rancho Sahuarita Village, 15455 S. Camino Lago Azul, Sahuarita. Amount owed: $4,100.00. Tucson Winnelson Co., 1057 E. Mill St., against Southwest Fiberglass LLC, 4798 S. Julian Ave. Amount owed: $15,337.15. Qualified Mechanical Contractors, 1001 S. Euclid Ave., against Southwest Fiberglass LLC, 4798 S. Julian Ave. Amount owed: $188,285.45. Bates Paving & Sealing Inc., 3225 E. 44th St., against Crown Mediterranean LLC, 95 Argonaut, Suite 160, Aliso Viejo, Calif. Amount owed: $7,440.00. Ferguson Enterprises Inc., 111 E. Buckeye Road, Suite 2, Phoenix, against Desai Family Trust, 2510 N. Castle Rock Drive. Amount owed: $11,209.00. Barker Morrissey Contracting Inc., 3619 E. Speedway, Suite 101, against Southwest Fiberglass LLC, 4798 S. Julian Ave. Amount owed: $762,671.00. Ace Asphalt of Arizona Inc., 4030 E. Michigan St., against Plaza De Vista LLC, 9920 S. Rural Road, Suite 108 PMB 77, Tempe. Amount owed: $2,999.51. Ace Asphalt of Arizona Inc., 4030 E. Michigan St., against Partnership for Quality Affordable Housing #5/ Centurion Management and Speedway Land Holdings LLC, 8585 E. Bell Road, Suite 104, Scottsdale. Amount owed: $1,535.77. Abracadabra Restoration, 4814 N. Shamrock Place, against Sarmad Albanna, 3158 N. Avenida Del Clarin, and Sundt Mortgage Group, 4810 E. Camp Lowell Drive. Amount owed: $11,009.89. Cutting Edge Fabrication, 8317 S. Camino De Cafe, against Sierra Bravo Properties, 3230 W. El Camino Del Cerro. Amount owed: $22,760.00. JMAC Electric LLC, 4455 S. Park Ave., Suite 106, against Sierra Bravo Properties, 3230 W. El Camino Del Cerro. Amount owed: $87,167.06. HD Supply Facilities Maintenance Ltd., 10461 Scripps Summit Court, San Diego, against Palo Verde Property LLC, 5251 S. Julian Drive, and Choice Hotels International, 10750 Columbia Pike, Silver Springs, Md. Amount owed: $11,589.66. Superior Plus Construction Products Corp., doing business as Winroc, 4225 W. Glenrosa, Phoenix, against Southwest Fiberglass LLC, 4798 S. Julian Ave. Amount owed: $1,913.17.

Technology Services building on Highland Avenue near Speedway, sit behind glass in climate-controlled room. With multicolored lights flashing, miles of cables and chilled-water cooling system, the rows of computer towers certainly evoke images from science fiction film and literature. But the larger Research Computing Data Center isn’t fiction, in fact, it holds real-world implications for the university and the region. “This isn’t bigger because I want a bigger lab, it’s bigger because I want to teach better students and increase the pie for everyone,” Russell said. She said the increased computing capacity could help to interest more researchers to the university, attract better students and pull in more grant money. “It can be an attracting factor,” Norin said, adding that many researchers and students will choose a university based on the technological assets available at the school. Russell also sees the new computing capacity as helping to increase collaborations with industry and more transfer of technologies into the market. The entire industry of climate consulting, which is closely related to Russell’s field, almost didn’t exist a decade ago, but today has become a multi-billion dollar industry, she said. That could provide more opportunities for collaboration between the university and industry. “We’d like more spin-offs to come out of our university,” she said. “We’d love to see more partnerships with local businesses and tech startups.” How or in what form any partnerships would take remains to be seen, Norin said, but thinks it could certainly happen. Another benefit of the new center is that it eliminates the need for UA researchers to outsource their research computing needs to other universities or organizations or to purchase smaller data centers and manage them on their own. The centralized research data center will be accessible for all UA researchers along with support services.

Next Generation is a monthly feature of Inside Tucson Business profiling Southern Arizonans on the cutting edge of developing their ideas. If you’ve got an idea or someone you think should be profiled, contact reporter Patrick McNamara at pmcnamara@azbiz.com or (520) 295-4259.

Correction Each time over the last 32 years that voters have been asked to approve road and street bonds — three times in the City of Tucson and five times in Pima County — they have been approved. Voters have rejected four proposals transportation improvement projects financed through sales taxes, but not through bonds. An article in the Oct. 10 issue about Proposition 409 on the Nov. 6 ballot conflated the two types of financial mechanisms.


InsideTucsonBusiness.com

OCTOBER 19, 2012

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10 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

SALES SALES JUDO

Why do we hate the car buying experience so much? As clichés go, the sales experience consumers most hate is buying a car. I have never entirely understood why this is so because I haven’t had any really bad experiences. I research what I want to buy on the Internet, including options, then call around for pricing and make my purchase either from a dealer or a broker. The only unfavorable experience I remember was dealing with a finance and insurance manager who was intent on trying to cross-sell me on a number of services and products. It was the only time I felt as though I was dealing with a shark. (And I may have been. A Tennessee outfit called Reahard and Associates trains finance and insurance managers and if you want to see the stereotypical look of a salesman who thinks you’re about to become his next meal, check out the photo of the CEO on the company’s home page — www.go-reahard.com. You almost expect to see the gleam of a gold tooth.) So, besides the finance and insurance

department, why do we feel the way we do about the car buying experience? David Weliver, a personal finance expert who runs a blog named Money Under 30 SAM WILLIAMS — www.moneyunder30.com — did a piece early this year titled “5 Big Car Buying Mistakes” in which asked a focus group about their biggest fears when they think of buying a car. Out of more than 50 responses, the majority shared a theme: • Getting ripped off on price • Overpaying because I am a woman and the salesman would take advantage of that. • I am not good at negotiating. • I didn’t want to get screwed over on the price. • Getting ripped off by a salesman.

PROP. 117 CAN RAISE PROPERTY TAXES

• That the salesman would try to intimidate me into paying too much or push me into (buying) something I didn’t want. “This is how we all set out to buy a car…with our guard up and feathers out,” writes Weliver. Michael Royce, a former car salesman himself, has a site called Beat the Car Salesman — beatthecarsalesman.com/ — that includes a section that has emails expressing the views of car sales people, such as: “…Car buyers expect a sleaze ball, that’s our reputation. Showing the consumer that you are there to help them buy a car, and are sincere about it, goes a long way! You don’t have to trick a customer in order to keep a decent profit on a vehicle…Show the customer that you care about them, before, during, and after they buy the car, and people will WANT to buy a car from you again (and tell their family and friends to buy from you) and just might be willing to pay a little extra for your knowledge and courtesy.” “I have been a car salesman for a little over a year… I have a 4 year degree from Purdue…I deal with (difficult) people all day long. I just want to know, when you go to a dealership, why do you act so angry and put on such a big show? I mean it’s really something!... I’ve had people throw the paper (bid) at me after I showed them numbers. Is it because you can’t afford the car or you’re mad at yourself for going to the dealership without doing your homework?! I mean it’s just business, and I’m just curious why some people don’t realize it’s a business just like every other (one) in this country. ..” “I am a female working on the sales floor ...and I am appalled by this entire website. YOU are the reason my job is hard; YOU are the reason I get beat up at work every day by consumers; and YOU are the reason everyone hates car salespeople…Have you ever thought about this? When you go to the grocery store, do you walk up to the counter with a gallon of milk and say, ‘I’ll give ya two bucks for this milk?’ NO! The milk company has to make a profit. WELL, I CAN’T WORK FOR FREE, and I’m sick and tired of people coming into my place of business and beating…(me up)… because of people like you.” I know a well-educated (MBA) and ethical young man who loves cars and went to work as a salesperson for Jim Click Ford. I bought a car from him without a hitch. When I asked him what it was like to sell cars, he explained that, while he loved the industry, a lot of customers were really hard on the

salespeople. They came into the dealership with highly defensive attitudes and seemed to believe they were perfectly justified in misleading and mistreating salespeople. So, could it be that we, as customers, are part of a dysfunctional feedback loop with car sales people? Sure, there are some bad apples out there, but could we actually a part of the problem? I’m not saying that we should all go out and hug a car salesperson today, but might it be that, per the late Walt Kelly’s famous quote from his comic strip, Pogo, “We have met the enemy, and he is us!” In my next column I’ll explore still more reasons for hating most sales people: 60 cheesy and manipulative closing techniques and why they think they should use them.

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.

Turning down the volume By Sam Williams Inside Tucson Business In my last column dealing with why so many of us dislike sales people, I wrote about how the techniques of carnival barkers were being used by TV pitchmen like Billy Mays and Vince Shlomi. Viewers may be interested to know that effective Dec. 13, the Commercial Advertisement Loudness Mitigation Act, or CALM Act, goes into effect requiring the Federal Communications Commission to ensure that TV commercials are no louder than TV programs. You can thank U.S. Rep. Anna Eshoo, D-Calif., for having introduced the legislation.


InsideTucsonBusiness.com

OCTOBER 19, 2012

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Smartphone email business etiquette: Is there any? Business people you care about are sending you email from their smartphones and getting your emails on their smartphones. Smartphones make up more than half of all mobile phones now and more than 90 percent of smartphone users check their email on their phones, often before they even read it on their computer. In fact, one June 2012 study suggests that smartphone email now surpasses traditional email in volume. This sudden change means that email users will change some of their best practices for email use and adopt some new ones. The first set of changes apply to email you send. Two simple steps help. One, shorten your subject lines to five words or less and punch them up to get people’s attention. Never mind that Outlook encourages you to write more than a Tweet in your subject line alone. Also, don’t bother attaching a 52-page PDF unless you’re sure the recipient can view the PDF later, on a computer. Next, as a sender of smartphone email, be professional. As a first step, customize your signature line (sig) so it does not simply promote your iPhone or BlackBerry, as in “Sent from my iPhone.” Here’s another step. Don’t make excuses. A smart phone email sig that caught my attention was identical to the sender’s computer email sig line with the additional statement, “Please forgive typos.” True, business people haven’t adopted many conventions or rules of etiquette yet for the use of a smartphone to send email, but you don’t have to be one of them. While you think about the smartphone rules you wish other people would follow, here are some guidelines to consider. One: Doing so proves that you’re considerate, with it and technically capable. Two: Recognize that sending email from a smartphone is different than using your Mac or PC and different from sending a text message. One obvious difference is that smartphone email tells the recipient you were not in your office when you sent the email. If you were, you’d use your computer. Given that assumption, if your sig line does not include your mobile phone number, what does that tell the recipient about you? Three: Arguably a smartphone email may have some similarities to texting (urgency, brevity), so abbreviations may be OK, but typos aren’t – at least, not many. That’s going to be especially true going

forward, with the latest and greatest smartphones offering spell check — that’s right, true spell check, not “word completion.” Four: Identify for yourself what DAVE TEDLOCK your personal rules are for when you email someone with your phone as opposed to waiting until you’re in your office. Is smartphone email friends and family only? Is your goal to seem highly responsive to your staff? To your customers? Interestingly, research indicates people use their smartphones to read, and respond to, email before they get their computer turned on. That suggests conventional email rules must change. Shorter emails become more important, or if the email must be long, try an executive summary up front, with details coming second. For starters, you may want to start by asking yourself who is getting your smartphone email. Do they like it? Does it make them feel like you are highly responsive or sloppy? Ask them. You can also survey your VIP folks and ask them whether they tend to read your email more on their phone or on their computer. Whatever choices you make, the trend is clear: millions of people are converting to smartphones, smartphone email is getting easier to use all the time (some phones enable dictation of email), so the role of smartphone email will continue to grow much faster than we can imagine. So now it’s your turn. Email me — at dave.tedlock@netoutcomes.com — your suggestions or comments. What aggravates you? What pleases you? What doesn’t faze you? I’ll compile the results and email them back to you as a thank you. You don’t have to use your smartphone to send the email, but if you do, you can be sure I’ll be reading your sig line.

Contact Dave Tedlock, president of the website development and marketing company NetOutcomes, at dave.tedlock@netoutcomes. com or (520) 325-6900, ext. 157. His Technically Speaking column appears the third week of each month in Inside Tucson Business.

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12 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

MEDIA

Network TV viewing patterns show changes are taking place By David Hatfield Inside Tucson Business

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With two weeks of data in, the new fall TV season already has its first cancellation — CBS’ “Made in Jersey” — but more importantly for local affiliates it appears viewers may be changing channels. For the first time in nine years, NBC nationally is the No. 1-rated network among the targeted 18-49 age group, up 11 percent over the first two weeks of last season. CBS is down 23 percent, Fox is down 21 percent and ABC is down 13 percent. Overall viewership among 18-49 year-olds is down 11 percent. At NBC (KVOA 4) new shows performing well include Matthew Perry’s “Go On” (8 p.m. Tuesdays), “The New Normal” (8:30 p.m. Tuesdays) and “Revolution” (9 p.m. Tuesdays). CBS (KOLD 13) has just one hit so far among the new series, Dennis Quaid’s “Vegas” (9 p.m. Tuesdays). Showing more comitment than network officials have had in recent years, Fox (KMSB 11) has already given the green light for full-season productions of sitcoms “The Mindy Project” (8:30 p.m. Tuesdays) starring Mindy Kaling, and “Ben & Kate” (7:30 p.m. Tuesdays). Neither could be described as a bona fide hit yet. At ABC (KGUN 9), “Nashville” (9 p.m. Wednesdays) premiered impressively Oct. 10 and “The Last Resort” (7 p.m. Thursdays) is showing some promise. New shows that are already in trouble include Fox’s “Mob Doctor,” ABC’s “666 Park Ave.” and “The Neighbors,” CBS’ “Partners,” and NBC’s “Animal Practice” and “Guys With Kids.”

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At last, Wildcats football fans won’t need their night vision goggles in Arizona Stadium next weekend. The Oct. 27 game against USC has been picked up by ABC/ESPN for a 12:30 p.m. kickoff. In this part of the country, the game will be shown on ABC (KGUN 9) and outside of the Pac-12 it will be on ESPN2. This Saturday’s (Oct. 20) Family Weekend game against Washington kicks off at 7 p.m. with TV coverage is on the new Pac-12 Networks.

Names for honors The Voice of the Arizona Wildcats Brian Jeffries was inducted into the Arizona Broadcasters Association Hall of Fame Thursday (Oct. 18) in Phoenix. He has been involved with broadcasting games since 1980 when he started out as a sideline reporter working for radio station KMGX. He became the play-by-play voice in 1987. Jeffries has called more than 2,000 Wildcats football, basketball and baseball games.

He’s now the director of broadcasting for UA sports with IMG, which means he oversees all of the Wildcats broadcasts, in English and Spanish and on radio and TV. Jeffries started his career as a disc jockey in 1975 in Yakima, Wash., later moving to Boise, Idaho, before coming to Tucson. Meanwhile, the Rocky Mountain Southwest Chapter of the National Academy of Television Arts and Sciences — who hands out Emmy awards — this month inducted KOLD 13’s Barbara Grijalva into its Silver Circle, which honors people who’ve been in the broadcasting industry for at least 25 years. A native Tucsonan, Grijalva has been at KOLD since 1983 and before that worked in local radio. For the sake of closure, a morning show on a Florida radio station won the Country Music Association award for best personalities in a medium market. Buzz Jackson, afternoon personality on KIIM 99.5-FM, was a finalist for the honor. It was three against one. That hardly seems fair.

The Emmy goes to ... Tucson TV stations came back from this year’s Rocky Mountain Emmy Awards this month with plenty of hardware — 13 awards in all. Both KGUN 9’s Erin Christiansen and KOLD 13’s Aaron Pickering won Emmys as weather anchors, KOLD’s Dave Cooney won one as sports anchor and KVOA 4’s Ryan Recker won one for sports reporting. Additionally, KOLD’s 4 p.m. weekday newscast won an Emmy for best daytime or evening newscast in a medium-sized market. As for how two people could win an Emmy for best weather anchor, the Rocky Mountain Southwest Chapter of the National Academy of Television Arts and Sciences explains that theirs is not a competition in the traditional sense of competing against each other. Instead, each is judged individually on its own merit against a standard of excellence. So congratulations to both Christiansen and Pickering and to Cooney and Recker; Tucson has two Emmy Award-winning weather anchors and sports talents this year. Other Emmys went to KGUN reporter Claire Doan and photographer Alfonso Sahagun; KOLD photographer/editor Edgar Ybarra and KUAT-TV 6 producers and editors Luis Carrion, Thomas Kleespie, Tony Paniagua and Mitchell Riley; and videographer Cooper James. All totaled, KUAT-TV brought home six awards, KOLD got four, KGUN got two and KVOA received one.

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


InsideTucsonBusiness.com

OCTOBER 19, 2012

13

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Giving is a 2-way street; restarauteur needs help

Musical offerings: Cool, hot jazz and Julliard Quartet

As a former restaurateur and now executive director of the Children’s Museum Tucson, I have been on both sides of the street when it comes to giving and receiving for causes. Restaurateur Brian Metzger, owner of Jax Kitchen and the Abbey, is among those who has contributed countless gift certificates as fund-raisers. Now Metzger could use a little help himself as his twin brother, Jay, fights Guillain-Barre Syndrome, a paralyzing neurological disorder. At 6:30 p.m. Monday (Oct. 22), Metzger will host Jay Day Dinners simultaneously at both of his restaurants to help his brother pay mounting medical bills. The menus include coctails, threecourse dinners and wine — all donated — along with the labor from the staffs of the two restaurants so the entire $150 per person can be donated to Jay Metzger and his family. Make reservations directly with the restaurant of your choice. • Jax Kitchen, 7286 N. Oracle Road — www.jaxkitchen.com — (520) 219-1235; or The Abbey, 6960 E. Sunrise Drive — www.theabbeytucson.com — (520) 299-3132

Celebrate Cosecha Dos Cabezas Wine Works in Sonoita is celebrating the end of harvest with a Cosecha festival Oct. 27 and 28. Cosecha, the Spanish word for harvest, gives proprietors Todd and Kelly Bostock an opportunity to share the fruits of their labor

(pun intended) from their two vineyards. It’s a ticketed event where guests are treated to a special barrel tasting tour, including newly released wines MICHAEL LURIA and unreleasedunblended wines. Also included is a lunch from Cafe Baratin, an acclaimed Scottsdale restaurant owned by chef Charleen Badman, who once worked at Café Terra Cotta. Tickets are $50 each and can be bought from Dos Cabezas website. For those not up to commiting the entire event, wine tasting tickets can be purchased for $12 and a la carte lunches are $15. Winemaker Todd Bostock says this is a particularly good year to celebrate. “After subjecting us to two years of meteorological brutality, Mother Nature finally let up and allowed the vines to not only load up on fruit, but also ripen it,” he said. • Dos Cabezas Wine Works, 3248 Highway 82, Sonoita — www.doscabezaswineworks.com — (520) 455-5141

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

There are a couple of musical offerings of note coming up — one jazz and the other chamber music. The third concert in the Tucson Jazz Society’s Jazz Under the Stars is titled “Cool and Hot” and is at 7 tonight (Oct. 19) at Tohono Chul Park, 7366 N. Paseo Del Norte. The hot part features Matt Mitchell’s Hot Club of Tucson performing Django-style Gypsy Jazz and the cool part features Eric Hines and Pan Dulce. Tickets are $30 at the door or buy them online — tucsonjazz.org — for $25, or $20 for jazz society members and military with an ID. Next week the world famous Julliard String Quartet performs two different concerts, one at 3 p.m. Oct. 23 and the other at 7:30 p.m. Oct. 24 in the Leo Rich Theater in the Tucson Convention Center (TCC), 260 S. Church Ave. The performances will include late works by Beethoven and Mozart. Tickets are $31 each with student discounts. Buy them online from the from Arizona Friends of Chamber Music at www.arizonachambermusic.org.

Opera Arizona Opera’s first production of the season “Lucia di Lammermoor” takes the stage at the Tucson Music Hall at the TCC this weekend. Set in the Scottish highlands of the 17th century, staging for the tragedy features gloomy castle sets and ornate costumes. The opera by

NEWS TO YOU!

Gaetano Donizetti is sung in Italian with English subtitles. Performances are at 7:30 p.m. Saturday and 2 p.m. Sunday.

Theater Arizona Theatre Company’s second production of the season “Lombardi” begins a week of preview performances Saturday night in anticipation of the opening next Friday (Oct. 26). This Southwest premiere looks inside the world of famous Green Bay Packers coach Vince Lombardi during a pivotal week in 1965. The play was written by Academy Award winner Eric Simonson based on the book “When Pride Still Mattered: A Life of Vince Lombardi.” Performances continue nightly except Sundays and Mondays through Nov. 10 at the Temple of Music and Art, 330. S. Scott Ave. There are also several matinees scheduled, including each Sunday. Single show tickets are on sale online at www.arizonatheatre.org or through the Tucson box office at (520) 622-2823. HERB STRATFORD

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

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14 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

PROFILE

Sonoran Gardens a growing business, through close designer relationships By Alan M. Petrillo Inside Tucson Business

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Growing a business may seem like a natural metaphor for a landscaping company, but doing so in a difficult economy and keeping the services provided at a high level to meet expectations are a couple of the growth elements that occasionally keep Chris Niccum, president and owner of Sonoran Gardens Inc., up at night. However, insomnia notwithstanding, Sonoran Gardens is flourishing at a time when competing businesses have shut their doors. Niccum says the core business focus of Sonoran Gardens has been designing outdoor living spaces for residential customers since the company’s inception in 1996, and the company’s expansion into a Custom Care division a few years ago has given it a boost that has fueled a part of its growth. Sonoran Gardens also has just completKira Niccum-Pritzl, left, Jean and Chris Niccum review a Sonoran Gardens landscape design plan. ed the purchase of the Contained Gardenbeing developed that allows you to sit in er, a company specializing in potted plants ing all jobs, ordering materials and front of a client with a laptop and show for residential and commercial customers, assisting the Custom Care manager, them in 3-D what their project will look like that Niccum said fits neatly into the Roberta Braegelmann. when its done.” Custom Care division Niccum, who holds a Technology comes into play on the mold of providing bachelor’s degree in b BIZ FACTS service side of the business too. The landscape maintenance ornamental horticulture o Sonoran Gardens Sonoran Gardens service technicians have and service, pool care ffrom Purdue University, iPads with estimating software loaded into and handyman services. ssaid his goal is to double 4261 W. Jeremy Place them, Niccum noted, “which means he has “Our core business is tthe size of Sonoran http://sonorangardensinc.com Gardens in terms of an office in his pocket where he can access still the design and G (520) 579-9411 the internet and maybe have a look at an building of outdoor rrevenue over the next living spaces,” Niccum five years, hoping to take owner’s manual if necessary.” He sees one of the biggest challenges to said, “which is how we survive as a the business over the $3 million mark all residential construction companies as company. But balancing that with our annually. the difficulty clients are having in obtaining Custom Care business means we have “Our landscape construction business money. become much less construction depencontinues to grow and a lot of that is due to “The decline in the housing market has dent.” the marketing we do and the close relationbeen a big hit for everyone,” Niccum Niccum said Sonoran Gardens was ships we’ve developed with designers,” observed. “It’s difficult for people to get “pretty much a residential construction Niccum said. “We have two designers who home equity loans for construction landscape company in 2008,” but that after work for us as contract employees, but still projects because many don’t have much revenues dropped 50 percent in 2009, “we maintain their own design firms.” equity left in their houses. But the market is knew we had to do something different to Niccum says Sonoran Gardens won’t do starting to change and we’re seeing some survive that downturn.” a landscape construction job without first banks loosening up on their lending And survive it did, becoming a bigger having a design developed, calling it the standards, which has been reflected in company today in terms of people and “first step in the job, where the designer more residential custom home work for us.” revenue than it was in 2008, Niccum said. meets with the client and gets the project He also believes that one of the chief “We have 16 employees now, including going.” reasons Sonoran Gardens recovered so the four family members who make up the He believes one of the biggest innovaquickly from the recession is due to management team of Sonoran Gardens,” tions in the landscape construction marketing. Niccum said. “That’s the big change in the business is that most of the marketing is “We fully understand the value of last few years — I’m the CEO now with a done on the Internet. For instance, when marketing and spend money to do it well, strong focus on financial management and he gets an initial phone call from a client, and right,” he said. “We’re constantly working on new opportunities.” Niccum first calls up a Google Street View updating and changing our marketing Niccum’s wife Jean serves as bookkeepof the residence and takes a bird’s eye look tactics, and even with the economic er and office manager. Their son Matt at the house to get a first impression of the downturn when we cut costs, we never cut manages the construction side of the scope of the job. back on our marketing budget. We want to business and builds all of the outdoor living “Using technology is the wave of the be out there always trying and doing new spaces, and their daughter, Kira Niccumfuture in every business,” he said. “From things ourselves.” Pritzl, is the operations manager, schedulthe design side, there is a lot of software Alan M. Petrillo

I.T. Genius


InsideTucsonBusiness.com

OCTOBER 19, 2012

CALENDAR SPECIAL EVENTS

Eighth 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 memorabilia. Dealer tables are $35. Tax-Free Trust of Arizona Annual Outreach Meeting Tuesday (Nov. 13) 10 a.m. to 12 p.m. Westward Look Resort 245 E. Ina Road Contact: Al Stockman astockman@ aquilafunds.com of (602) 820-1859 www.aquilafunds.com Annual outreach meeting feature speakers include Arizona economist John Lucking, who will provide an economic update for Tucson and Arizona, and Todd Curtis, portfolio manager of the Fund.

Lions Club – Weekly Breakfast Every Wednesday 7 to 8 a.m. Radisson Suites 6555 E. Speedway Information: TBLCTREA@Dakotacom.net Marana Chamber of Commerce Breakfasts First Wednesday, 7:30 a.m. Taste of Texas 8310 N. Thornydale Road RSVP: (520) 682-4314 Marana Chamber of Commerce Mixer Fourth Tuesday of each month 5:30 to 7:30 p.m. Locations vary

Information: www.maranachamber.com

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Metropolitan Tucson Convention & Visitors Bureau First Tuesday Monthly Luncheon 11:45 a.m. to 1 p.m. Arizona Inn 2200 E. Elm St. RSVP Required: (520) 770-2131 or www.visitTucson.org/PartnerRSVP Cost: $25 MTCVB Partners; $30 Others

NAWBO Monthly Breakfast Fourth Tuesdays, 8 to 9:30 a.m. Locations vary Info: Morella Bierwag, (520) 3262926 or info@nawbotucson.org

NAWBO Monthly Mixer Third Thursdays 4 to 7 p.m. Locations vary

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Kiwanis Club of Oro Valley Wednesdays, 7 a.m. Holiday Inn Express 10150 N. Oracle Road Info: jepsenaz@comcast.net Cost: $8

Solar Water Heating Systems

LeTip Midtown Every Tuesday, 7:01 to 8:31 a.m. El Parador Restaurant 2744 E. Broadway RSVP: (520) 296-9900 Cost: $10 LeTip Tucson Executives Chapter meeting Every Tuesday, 11:30 a.m. to 1 p.m. Macayo’s Mexican Kitchen 7360 N. Oracle Road RSVP: (520) 299-9600, bwmartin@cox.net LeTip International I-19 Business Networkers Every Tuesday, 11:30 a.m. to 1 p.m. Amado Territory I-19 exit 48 Information: (520) 591-5500 Cost: $15

Rebate Amount

Commercial water and pool heating systems $15/therm up to 50%

Additional Rebates Available To learn more about other available commercial and residential rebates, visit www.swgasliving.com/intucsonbiz or call our Energy Specialists at 1-800-654-2765.

Saving money is Smarter. Energy Efficiency is Greener. Rebates are Better.

Scan this with your mobile device.

NAWBO Monthly Luncheon Second Tuesdays 10:30 a.m. to 1:30 p.m. Locations vary Info: Morella Bierwag, (520) 3262926 or info@nawbotucson.org

15


16 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

BRIEFS THE

RANCH-STYLE ET OUR EVENT COORDINATOR HANDLE , ALLTHEDETAILSOFYOURHOLIDAYPARTY sINDOOROROUTDOORVENUESFOR UPTOPEOPLE sHORSDOEUVRESPARTIES HOLIDAY BUFFETS PLATEDDINNERS AND""1S sENJOYAHORSEBACKRIDE

4ANQUE6ERDE2ANCHCOM  

GET ON THE LIST

NEW IN TOWN

Next up: Chambers of commerce, Business and trade organizations

Grand opening Saturday at Furrierâ&#x20AC;&#x2122;s 13th store

Inside Tucson Business is near the final weeks of gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are: â&#x20AC;˘ Oct. 26: Women-owned businesses â&#x20AC;˘ Nov. 2: Chambers of commerce, Business and trade organizations â&#x20AC;˘ Nov. 9: Telephone service providers, Telecommunications equipment providers, Teleservices firms â&#x20AC;˘ Nov. 16: Tourist attractions in Southern Arizona â&#x20AC;˘ Nov. 23: Hotels, resorts and guest ranches; Travel agencies 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.

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Jack Furrier Tire and Auto Care will have a grand opening Saturday (Oct. 20) for its 13th Southern Arizona location in Marana near Interstate 10 and Cortaro Road. The store, 8051 N. Casa Grande Highway, is on the eastbound I-10 frontage road south of Cortaro Road. Like Furrierâ&#x20AC;&#x2122;s other locations, the Marana store is open from 7:30 a.m. to 5:30 p.m. weekdays and 7:30 a.m. to 4 p.m. Saturdays. The phone number for the new location is (520) 744-4800. Started in 1960 as Western Tire Center, the Tucson-based retailer says it now has 12 locations that are within five minutes of 95 percent of the population of the Tucson region. It also has a location in Sierra Vista. The companyâ&#x20AC;&#x2122;s website is: www.jackfurriers.com.

ECONOMIC DEVELOPMENT

Commerce Authority CEO choice narrowed to one The interim CEO of the Arizona Commerce Authority (ACA) has been named the sole finalist to permanently lead the statewide economic development agency. Sandra Watson has been serving as the interim CEO since Don Cardon resigned the position early this summer. She had been the chief operating officer and with the state Department of Commerce since 1996. According to Nicole McTheny, spokeswoman for the ACA, the next step is to work out a contract with Watson. She is currently being paid an annualized salary of $218,000 as interim CEO. Cardonâ&#x20AC;&#x2122;s salary was $300,000. The ACA was established last year as a public-private agency to replace the Arizona Department of Commerce. It receives $10 million from the state but is run by a board made up mostly of CEOs of private firms named by Gov. Jan Brewer. According to the Arizona Capitol Times, the ACA spent $75,000 on the search for a new CEO.

ENTERTAINMENT/SPORTS

4 MLS teams to return to Tucson in February

(520) 408-7200 â&#x20AC;&#x201C; xceldelivery.com 3770 S. Broadmont at Ajo Way â&#x20AC;&#x201C; Tucson, Arizona

Building on the success of the past two years, four Major League Soccer (MLS) teams have accepted invitations to come to Tucson to pay in the third annual FC Tucson Desert Diamond Cup next February at Kino Veterans Memorial Stadium, 2500 E. Ajo Way. Additionally, NBC Sports Network, formerly Versus, has announced it will show the eventâ&#x20AC;&#x2122;s final game live. â&#x20AC;&#x153;Tucson has become the â&#x20AC;&#x2DC;Western Hub of MLS Pre-Seasonâ&#x20AC;&#x2122; and we look forward to celebrating the worldâ&#x20AC;&#x2122;s game with our


InsideTucsonBusiness.com

OCTOBER 19, 2012

17

BRIEFS friends and family all around the region, including northern Mexico,” said Greg Foster, managing member of FC Tucson, in making the announcement today (Oct. 11). Three of the teams — the New England Revolution, the New York Red Bulls and Real Salt Lake — are returning from this year’s Desert Diamond Cup and will be joined by the Seattle Sounders. The 2013 FC Tucson Desert Diamond Cup will take place over four day, consecutive Wednesdays and Saturdays, Feb. 13, 17, 20 and 23. The tournament championship final will be played at 6 p.m. Feb. 23.

LEGAL

AZ Voter registration law to be heard by high court An Arizona law requiring proof of U.S. citizenship before allowing someone to register to vote will be taken up by the U.S. Supreme Court. Passed in 2004 as Proposition 200, critics say the law imposed a substantial burden on the ability of citizens to register and cast ballots. A 2006 lawsuit argued the requirement clashes with a 1993 federal law – the National Voter Registration Act (NVRA) – that set the terms for voter registration nationwide and did not include a requirement that prospective voters show ID proving citizenship before being permitted to register to vote in a federal election. State lawyers are asking the Supreme Court to reverse an 8-2 decision of the Ninth Circuit Court of Appeals that blocked enforcement of the Arizona proof-of-citizenship requirement against those using the federal NVRA form to register to vote.

HUMAN RESOURCES

Convergys seeks to fill 285 new jobs Looking to add 285 jobs, Convergys Corporation will hold a job fair from 11 a.m. to 4 p.m. Oct. 30 at the Doubletree Hotel by Hilton at Reid Park, 445 S. Alvernon Way. Convergys, 3760 N. Commerce Drive, operates a customer service center. New employees will provide inbound customer service support to a client in the healthcare industry. New hires will also have the opportunity to earn a pharmacy technician certification, the training for which will be fully covered by Convergys. The company is also accepting applications online at http://careers.convergys.com. Potential employees must have exemplary customer service skills, computer literacy, and candidates should posses some sales experience, according to Dan McKelvy, site leader for the Convergys center in Tucson.

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YMT-12-618


18 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

TUCSON STOCK EXCHANGE

What to do with 401(k) if you leave your job If you leave your job where you have contributed to a 401(k) plan you will have three options available to you: cash out the 401(k), keep it in the current plan or move it into another qualified retirement account. A qualified account could be your new employer’s 401(k) plan, a traditional IRA or a Roth IRA. When you transfer your 401(k) to another qualified retirement account, it’s called a rollover. The first option, cashing out your 401(k), is usually the worst thing you could do. Not only will you be taxed on the withdrawal, but the withdrawal may also push you into a higher tax bracket. Additionally, if your under 59½ years of age, you are subject to a 10 percent early withdrawal penalty. For example, let’s assume a combined federal and state tax rate of 35 percent, a $100,000 premature withdrawal from a 401(k) could cost you $45,000 in taxes and penalties leaving you with only $55,000. Keeping your 401(k) in the existing current plan does have some benefits. If the 401(k) has a lot of highly appreciated company stock, from the company you actually worked for, you may want to take advantage of the net unrealized appreciation tax break. Net unrealized appreciation is the difference between the value of the company stock at the time it was put into your 401(k) account and the time of distributions, or transferred out of the 401(k). So the only part of your company stock subject to your ordinary income taxes is the value of the stock when it was first acquired by the 401(k) plan. To summarize, because of the net unrealized appreciation tax break, it may be beneficial for you not to roll over your company stock from the 401(k) to an IRA. Mostly likely, though, you want to roll over other assets that don’t receive the net unrealized appreciation tax break for continued tax deferrals on past and future growth. Here is an example: Joe is 57 and has company stock in his 401(k) plan. The original cost was $200,000, but now it is worth $1 million. This example is assuming Joe immediately sells his stock. Not rolling into an IRA 35% income tax on $200,000 = $70,000 15% lower capital gains tax on $800,000 = $120,000 Total tax $190,000

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

Company Name

Symbol

Oct. 17

Oct. 10 Change

52-Week 52-Week Low High

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

Rolling into an IRA 35% tax on $1 million = $350,000 Total tax $350,000

If you plan on working past 70½, 401(k) plans don’t DREW BLEASE usually force you to take a required minimum distribution as IRAs do. Additionally, 401(k) plans have loan provisions allowing you to borrow against them without taxation or penalties. Though, any amount not repaid is treated as a taxable distribution. Lastly, your current 401(k) may have lower fees than an IRA. The last option is to do a rollover of your 401(k) to an individual IRA or a Roth IRA. A rollover into a Roth IRA does increase your taxable income and potentially bump you into a higher marginal tax rate. If you are not sure if a rollover into a Roth IRA is beneficial for you, you can always transfer your 401(k) into a traditional IRA and then, later do a partial or full conversion into a Roth IRA. Limitations and restrictions may apply. Rollovers to traditional IRAs are tax-free and benefits include: more investment flexibility (into such things as stocks, bonds, CDs and even real estate) and continued tax deferral on past and future investment gains. If you elect to do a rollover into an IRA, make sure your employer makes the check payable to the investment company you’ve chosen. This is called a trustee-to-trustee transfer and it helps avoid the 20 percent automatic tax withholding. After your transfer is complete, you want to invest it appropriately in a well-balanced and diversified portfolio with low correlated asset classes including different types of bonds and equities. Please consult a financial/tax advisor that specializes in retirement planning to protect yourself, your family and your retirement nest egg.

Contact Drew Blease, president and founder of Blease Financial Services, 7358 N. La Cholla Blvd., Suite 100, at drewblease@ bleasefinancial.com or (520) 299-7172.

AERG.OB CEXIQ.OB PRSC UNS

0.03 0.30 11.35 42.32

0.03 0.01 11.44 41.40

0.00 0.29 -0.09 0.92

0.03 0.01 9.56 34.62

0.69 0.24 16.87 27.02

9.18 0.37 2.79 9.44 60.84 8.67 90.50 17.59 58.39 3.79 19.31 38.43 37.12 28.09 32.42 16.35 96.78 39.33 46.65 10.19 78.51 56.01 21.56 42.31 29.56 61.39 61.89 200.63 37.69 60.91 5.60 43.32 36.43 16.76 52.81 25.01 1.49 38.13 32.79 42.69 59.33 40.84 38.79 41.55 48.21 70.60 26.58 17.44 56.66 50.06 16.33 45.08 61.47 11.45 8.95 44.72 35.59 63.04 17.53 28.47 45.66 20.62 123.73 21.40 11.62 34.20 77.03 35.83 34.47 10.78 22.06

8.71 0.38 2.70 9.21 59.77 7.60 88.73 17.80 59.55 3.67 18.45 35.14 35.16 27.93 31.33 15.84 101.56 39.58 48.06 9.84 73.53 55.22 20.73 40.22 28.65 59.74 60.24 205.82 34.35 59.64 5.33 41.77 35.27 14.86 50.14 23.30 1.47 36.78 30.89 41.55 58.77 39.00 38.38 40.53 46.80 68.21 24.15 15.89 54.81 48.30 16.29 42.75 59.36 10.36 8.77 43.75 34.96 62.66 17.14 27.17 45.34 20.18 120.93 28.10 11.34 34.60 75.42 35.63 35.23 10.47 21.86

0.47 -0.01 0.09 0.23 1.07 1.07 1.77 -0.21 -1.16 0.12 0.86 3.29 1.96 0.16 1.09 0.51 -4.78 -0.25 -1.41 0.35 4.98 0.79 0.83 2.09 0.91 1.65 1.65 -5.19 3.34 1.27 0.27 1.55 1.16 1.90 2.67 1.71 0.02 1.35 1.90 1.14 0.56 1.84 0.41 1.02 1.41 2.39 2.43 1.55 1.85 1.76 0.04 2.33 2.11 1.09 0.18 0.97 0.63 0.38 0.39 1.30 0.32 0.44 2.80 -6.70 0.28 -0.40 1.61 0.20 -0.76 0.31 0.20

7.97 0.20 1.48 4.92 50.95 5.30 72.60 16.25 48.36 3.30 14.12 23.30 20.90 15.97 22.19 9.86 78.41 34.06 34.28 7.08 42.54 50.14 10.11 31.08 20.78 34.58 47.85 176.17 27.10 48.91 3.40 28.28 26.10 6.17 42.72 20.98 0.49 14.87 20.34 35.59 43.30 28.69 27.53 16.43 34.87 52.69 19.06 4.24 42.00 36.50 14.73 31.61 28.89 6.25 7.37 37.05 22.41 47.25 14.04 26.06 32.09 15.51 90.56 21.34 3.96 23.72 55.68 28.53 23.19 5.46 14.52

17.60 9.24 7.02 3.61 19.10 19.78 7.10 80.09 45.55 50.78 5.64 7.08 14.38 5.43 17.88 40.11 58.36 12.76 61.45 38.27 13.73 20.17 46.48 13.90 90.55 45.94 31.03 43.21 8.99 134.25 32.04 33.15 4.80 47.47 26.29 20.70 60.89 24.80 4.77 17.88 24.50 38.41 38.22 20.84 29.88 10.79 24.35 66.08 62.23 37.21 13.59 4.87 56.30 45.19 6.83 23.94 41.59 106.06 18.56 12.73 29.48 29.53 52.46 20.95 27.00 32.85 16.34 68.66 81.20 7.23 26.84

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


InsideTucsonBusiness.com

OCTOBER 19, 2012

19

INSIDE REAL ESTATE & CONSTRUCTION

Home builders singing ‘Back in the Saddle’ By Roger Yohem Inside Tucson Business

YEARTODATE BUILDING PERMITS: SEPT. 2012

For the first time in at least six years, new home builders are singing a new song. Like Aerosmith’s Steven Tyler, they are “Back in the Saddle.” In September, building permits passed the total volume for 2011. Year-to-date, 1,526 permits have been issued compared to 1,438 for all of 2011, to which Ginger Kneup, owner of Bright Future Real Estate Research, simply sang praises of “good news!” After the housing and mortgage crash, builders had to “take the long way home” a la Supertramp. They struggled to find their way back to profitability amid a market of “dis-chord,” blasted by foreclosures, shadow inventory and mortgage fraud. To exceed the 2010 total of 1,865 would require an average 113 permits a month for the rest of the year. Although new construction typically slows this time of year, Kneup said, “This is a possibility. We expect Oro Valley to continue strong through the fourth quarter.” Lennar, Meritage Homes and Richmond American Homes soon will have new projects humming in the Rancho Vistoso area, she explained. During September, the city of Tucson “topped the charts” with 35 permits, followed by Oro Valley with 33 (see chart). Sahuarita had the least at 9 permits. Year-to-date, Pima County has issued the most permits at 436, followed by Marana at 385. The fewest permits were in Oro Valley at 103. However, that total is almost a 300 percent increase over 2011, an economic boost that puts the town “on the road again” to recovery.

2012

2011

2010

2009

Pima County

436

412

579

574

Marana

385

230

288

153

Tucson

247

175

276

282

Sahuarita

211

149

279

445

So. Pinal

144

133

147

131

Oro Valley

103

35

39

43

1,526

1,134

1,608

1,628

Total Source: Bright Future Real Estate Research

MONTHLY BUILDING PERMITS: SEPT. 2012 2012

2011

2010

2009

Pima County

31

41

43

93

Marana

29

20

17

26

Tucson

35

10

17

33

Sahuarita

9

15

23

48

So. Pinal

11

15

16

14

Oro Valley

33

0

3

7

148

101

119

221

Total Source: Bright Future Real Estate Research

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

TUCSON REAL ESTATE

10/8/2012

10/1/2012

$150,000 4,507 392 367 170

$129,500 4,454 475 319 169

Source: Long Realty Research Center

Consider it a sign of the times, the still uncertain yet optimistic economic times. Now that the 2012 third quarter has closed, commercial real estate brokers are eagerly looking forward to several planned projects for 2013. In the office sector, all eyes are on the much-anticipated construction of a 124,000 square-foot mixed-use building downtown. In industrial, there is 175,000 square feet of new product in the pipeline. In retail, Walmart is driving most of the 377,000 square

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

Current

Last Week

10/16/2012

One 12 Month 12 Month Year Ago High Low

3.63% 3.875%APR 3.63% 3.875%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%

feet of space under construction. The bottom line? The third quarter performance was just kinda… there. “Economic uncertainty continues to stall the office market rebound. As a result, Tucson’s office market recorded its second straight quarter of negative absorption,” said David Montijo, first vice president at CBRE. In the third quarter, the office market lost 45,838 square feet of occupied space. That pushed the overall vacancy rate to 17.6 percent from 17.1 percent in the second quarter, according to Montijo. CBRE tracks non-owner occupied properties larger than 10,000 square feet. Rick Kleiner, a principal with Picor Commercial Real Estate Services, pointed to three “significant distressed buys” that closed during the quarter. The highest-priced parcel was Southwest Professional Plaza, 2122 N. Craycroft Road, that was bought at auction for $4.85 million by a California investor. Corporate Center Broadway, 7750 E. Broadway, was purchased for $2.8 million by the Easter Seals Blake Foundation. And Pima County bought the former HUD Building at 160 N. Stone Ave. for $635,000, he said. The industrial sector recorded its “larg-

est occupancy gains of the year,” said Tim Healy, vice president at CBRE. “The best performer was the southeast submarket.” Overall, there was about 150,000 square feet of net absorption in the quarter. Although the sector has scored three consecutive quarters of gains, the year-overyear vacancy rate is basically flat, currently at 10.9 percent compared with a year ago at 11 percent, according to CBRE. With several large properties in escrow and the arrivals of Accelr8 and Integrated Technologies to the market, “we expect a strong finish to 2012 in terms of activity and absorption,” added Stephen Cohen, another principal with Picor. Lastly in retail, the holiday shopping season can’t start fast enough. During the third quarter, about 19,000 square feet of space was vacated, “ending a streak of five straight quarters of positive gains,” said Nancy McClure, first vice president at CBRE. During those five quarters, 372,795 square feet of space was absorbed. Occupancies are still stronger compared to last year. The third quarter ended with a 10.2 percent vacancy rate compared with 12.4 percent a year ago. Total retail inventory now stands at 21.4 million square feet, she added. Looking ahead, McClure captured the optimism of her peers: “As available space in the prime retail hubs diminishes, more new development will likely occur.”

Contractors’ treat Martina and Alvaro Leon, who will open their second Dairy Queen Treat Shop in December, typify the small business owners who grow the local economy. Their new $1.1 million restaurant will create up to 15 construction-related jobs and once open, up to 30 retail jobs. The 2,000 square-foot building at 6550 S. Midvale Road will feature a modern design concept that will offer drive-through, dinein and outside seating. The architect/engineer/general contractor is KBP Architecture LLC/Kevin Petrick & Associates, 11635 E. Tanque Verde Road. Opening a southwest location was important to Alvaro because he lived in the area as a teenager. The Leons also own and operate a Dairy Queen at 6780 E. Tanque Verde Road.

Sales and leases • TMC Holdings purchased 1,500 square feet at 5200 E. Farness Drive, Suite 100, for $105,000 from Paul and Maureen Lichtenstein, represented by Andrew Sternberg, Oxford Realty Advisors. The buyer was represented by Rick Kleiner and Tom Knox, Picor Commercial Real Estate Services.

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


20 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

To vote now or to vote later? So now, not only do we have to figure out which candidates to vote for and how to vote on the propositions, the new dynamic is when to vote. Do it too soon and you might cast your vote for somebody who is later found to have kicked a puppy. But the longer you put it off, the longer you’re faced with a barrage of robocalls and junk mail. By the time this column hits the DAVID HATFIELD printed issue of Inside Tucson Business, probably about one out of five of us who will vote in the Nov. 6 election in Pima County already will have mailed back their completed ballots. That’s according to trends from previous elections. In the Aug. 28 primary, 60 percent of ballots were cast by mail and 40 percent of those were returned within the first 10 days. For the Nov. 6 election, the bulk of the county’s early ballots arrived in mailboxes last Friday (Oct. 12). There’s plenty of upside to voting early. As soon as Pima County Elections officials receive completed early ballots they remove them from the outer envelopes and mark off the name of the voter who has returned the ballot. The ballots, which are still inside another envelope, are then sent to the counting area where they are held, unopened, until they are counted. The important part is that once you’re checked off as having voted, you’re no longer an influenceable voter in the eyes of a campaign. They stop phoning you and they stop the mailings. At least the sophisticated campaigns do. On the other hand, these last weeks before Election Day is when campaigns pull out all of the stops to dig up dirt. Voting too early might mean voting for a candidate who has done something bad. Or maybe somebody will find an unintended consequence on a ballot measure. For my money, a candidate who gets so desperate that he or she needs to lie to try to get elected is a sure “no” vote. There’s also the matter of evaluating endorsements. We at Inside Tucson Business last week outlined our recommendations for the propositions and this week’s editorial lists the candidates for Congress and the Legislature who will work for the best interests of businesses and the economy. More endorsements are planned for next week’s issue. The choice is: Vote early, get it over with and enjoy the peace and serenity of fewer phone calls and junk mail or continue gathering information? If you wait, know that others are doing the same. In the Aug. 28 primary, about 9 percent of ballots were turned it at polling places on Election Day.

Getting the newspaper My column two weeks ago about my frustrations in getting a newspaper delivered to a hotel room garnered some interesting responses, including from hotel executives. It turns out discontinuing newspaper delivery was a cost-saving move for most hotels. However, executives from two of Tucson’s top resorts said they both have systems in place to deliver a newspaper to a room for a guest who really wants one. I should have stayed in Tucson.

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

EDITORIAL

Elect clout for Southern Arizona At a time when Southern Arizona’s economic and business interests can be overwhelmed by the wants of Maricopa County or lost in political partisanship, deciding which candidate is best in this election can boil down to who gets us clout in Congress and in the Legislature. So we at Inside Tucson Business are taking a different look at the candidates this year, with an eye to endorsing those who stand the best chance of listening and then doing something good for Southern Arizona.

Congress • U.S. Senate: Richard Carmona. There hasn’t been a Tucsonan in the U.S. Senate since Dennis DeConcini left 18 years ago. Although he’s running as a Democrat, Carmona has been an independent and thinks that way, which could make him a crucial decision-maker depending on how the political make-up of the Senate after this election. • Congressional District 1: Jonathan Paton. In his time in the Legislature, Paton proved to be diligent listener and, more importantly, someone who will work with others to see a solution through. He would be a voice of reason within the Republican majority in Congress. • Congressional District 2: Martha McSally. As the first woman to command a U.S. Air Force fighter squadron and at age 46, Republican McSally is the person who can start working now to regain clout for Southern Arizona in Congress. Her opponent, who is also new to the job, is a 67-year-old career bureaucrat and can’t possibly get clout before he retires. • Congressional District 3: Raúl Grijalva. Facts are facts, one of the most liberal members in Congress will be reelected because, unlike two years ago, Republicans don’t have a serious challenger.

Legislature • Legislative District 2: Oddly, considering this district includes the Republican stronghold of Green

Valley, there’s only one Republican candidate running for any of the three seats: Chris Ackerley (his name is John Christopher Ackerley on the ballot), a teacher who knows the value of education which would make him an important asset to a Republican majority caucus. • Legislative District 9: He may be a Democrat but Steve Farley has always been approachable and willing to work with anyone — even Republicans — who has good ideas. For the House, Ethan Orr is the epitome of the kind thoughtful Republican who can make a difference for Tucson. • Legislative District 10: Talk about a clout quandary. There’s Republican Frank Antenori, a man who will meet with any constituent but who can be frustrating to business interests, including the Tucson Metro Chamber, when he says, “I’m not their little butt-boy,” as quoted in the political Yellow Sheet Report. Some Republicans have even started to distance themselves from Antenori. In a district with a Democratic registration edge, David Bradley should have an upper hand. He’s an amiable fellow who has Legislative experience. His passion is healthcare. The choice for the House is easier with two incumbents of different parties who’ve proven their abilities at consensus-building: Republican Ted Vogt and Democrat Bruce Wheeler. • Legislative District 11: While Republican Al Melvin looks to have the upper-hand at re-election, he too (like Antenori) has lost some business support, including the Tucson Metro Chamber because he’s unwilling to work with them. Democrat Jo Holt, a scientist, is an intriguing candidate because she’s willing to listen before acting. For the House, two newcomers show promise: Republican Adam Kwasman, who has a degree in economics, and Democrat Dave Joseph, who has been a TV broadcast executive and worked for the Pima Association of Governments.


InsideTucsonBusiness.com

OCTOBER 19, 2012

21

OPINION WAKE UP, TUCSON

Two views redux: The employee and the boss, 2012 version Instead of getting into a version of “Dueling Brandos” with Pima County Administrator Chuck Huckelberry and his employees on the Board of Supervisors, we’d like to reintroduce you to an old favorite. You may recognize yourself as a business owner and an employee, who with their families are counting on you to make payroll. Hopefully, there will be a few shekels left to pay your bills. Now, let’s sit down with a typical buisness owner and an employee to talk about the Nov. 6 election. Tell us about yourself and what you do. Business owner: “I started my business 12 years ago. We sell furniture. I put my life savings into opening. I built the company to two locations and 18 employees. The hours are long but I love the independence.” Employee: “I work for a furniture store. They treat me good but I haven’t had a raise in two years. If I could find another job I’d probably leave.” Have you worked on a candidate’s campaign? Owner: “I’m so busy trying to stay open I don’t have much time to help on campaigns.” Employee: “I’ve walked the neighborhood for the Democratic party. They have pizza.” Do you financially support candidates? Owner: “Why should I contribute to a

pro-business candidate? It won’t make a difference. I don’t like my name on any donor lists” Employee: “I donate $20 here and $50 there. I get out and help where JOE HIGGINS I can.” Do you support political organizations that make the community better? Owner: “I joined the chamber of commerce. I think they are involved in politics and electing pro-business candidates CHRIS DeSIMONE but I’m not really sure.” Employee: “I am the vice president of the Pima Mountain Quail and Lizard Hugging Association.” Who best represents your interests at the federal level? Owner: “Nobody really. I’d like to see

someone run against Congressman Raúl Grijalva. He really hurt business when he called for a boycott of Arizona.” Employee: “I am proud to be represented by Raúl Grijalva. He stands up against corporations and it was right that he should tell the world not to come Arizona.” Have you ever gone to a Tucson City Council or county Board of Supervisors meeting? Owner: “Where do they meet again?” Employee: “I go all the time. I speak out against fat-cat business owners who don’t pay their fair share to build low-income housing and fund the arts.” What do think about the condition of the roads in Pima County? Owner: “I keep hearing the state reduced HURF funding to all municipalities. But why do the roads in Maricopa County, Marana and Oro Valley look so good when ours look like downtown Kandahar?” Employee: “Those fascists at the state Capitol took all the money! That’s what my Pima County Board, the Tucson paper and Tucson Council people told me.” Do you vote? Owner: “No. Like I said earlier, it doesn’t make any difference.” Employee: “I always vote by early ballot. I also help collect other early ballots for a

bunch of my neighbors and deliver them.” Did your property taxes go down when your property values went down? Owner: “No. My property taxes went up, even though my property value went down 17 percent.” Employee: “I rent so I don’t pay property taxes. How have you been making it through this economic downturn? Owner: “It’s been tough. I’ve been losing money. I can’t sleep. I’ve had to cut employees’ hours in half just to try to keep it going.” Employee: “My lousy boss cut me down to 20 hours a week.” So how do you see your future in Tucson? Owner: “After 12 years in business, I’m not sure I can make it much longer. My kids graduated from the U of A and moved to Austin. I may join them.” Employee: “The place where I work is talking about closing, but I’ll find something. I’d like to get a job with the county or the city.” Vote bravely in the Nov. 6 election or you might be closing in December.

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. 121 would change the way we do primary elections Proposition 121 on the Nov. 6 ballot would change the way we do primary elections in Arizona. Under our present system, voters in each political party votes for the candidates from within their party to go on the general election. This proposition would have all candidates, regardless of party, appear on a single ballot and the top two vote-getters would go on to the general election. It would apply to all elections in Arizona, except those that are already non-partisan and for the election of U.S. President and Vice President. It would apply to our elections for U.S. Senate and Congress, to statewide offices including governor, secretary of state and attorney general; the Legislature, and county offices. If it’s approved by voters, the new “top two” system, as it’s called, would go into effect Jan. 1, 2014. The change would have special significance for the City of Tucson which is the only city in the state that holds partisan primary and general elections. That would be changed to this new system. Proposition 121 drafters say that in the present system, a small number of highly partisan voters vote in the primaries. They believe the top two primaries result in more

moderate candidates who would advance to the general election. They say the expected result would be increased voter turnout — especially among independent voters CAROL WEST — in primaries and election of candidates who better represent “the broad majority of voters” who are moderates. The states of California and Washington already have passed similar initiatives. Oregon voters in 2008 turned down the idea. Political activists believe “Arizonans want change. It appears that our elected officials are beholden to political party bosses and lobbyists rather than to the voters who elected them. Partisan political bosses set the agenda and handpick candidates to run. What is needed, they say, is a ‘sensible center’.” Opponents of Proposition 121 say that “ultimately this will reduce choices voters have in the general elections. Voters in some districts where one party has a large

majority will find themselves with only a choice between two candidates of the other party in the general election.” However those who support the measure believe “this system will level the playing field, forcing all candidates to meet the same qualifications, play by the same rules, and appeal to the same voters in the primary election.” Critics note that “independent and minor party candidates will be unlikely to advance to the general elections (where most voters participate) and cannot present their ideas to the electorate.” Those in support argue that “since independents are one of the largest growing political groups in Arizona, even if independent candidates don’t make it to the general election ballot, it would still give them more clout to elect moderates in the general election.” Supporters believe “this is a voter’s choice initiative. Those on the ballot will have to reach out and cross party lines. Party labels will be less important. It is the responsibility of the voters to do their homework on the candidates. This is a fair system to all.” Some Democrats argue the proposition

could reduce the ability of minorities to elect candidates of their choice. Yet, at least two prominent Hispanic groups have signed arguments in favor of the initiative: Chicanos por la Causa and the Tucson Hispanic Chamber of Commerce. A news opinion piece argues that Proposition 121 “would take power away from the parties and put it back in the hands of the voters” where it belongs. “It gives voters rather than a few party zealots the right to have a say about which candidates advance to the general election.” The news account indicates that in other states where top two primaries are the law, there hasn’t been a larger turnout in primary elections. However, the citizens group spearheading Proposition 121 cannot be faulted for wanting more accountability from elected officials. Voters can now decide if Arizona primary elections should change.

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.


22 OCTOBER 19, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

My commitment: Solutions to get people working again The American economy is suffering from a severe case of the “Uns” — unemployment, underemployment, unfunded mandates, unaffordable health care, and unsustainable debt. Congress is adding to the problem by creating uncertainty by failing to address these challenges in a bi-partisan, thoughtful, pragmatic way. We have had the longest stretch of high unemployment (43 months above 8 percent) since the Great Depression. Gross Domestic Product is growing at an anemic pace. The median net worth of American households declined 35 percent between 2005 and 2010. Median household incomes declined by 8 percent between 2007 and 2011. Four million Americans lost their homes to foreclosures and 9 million more have been served notices. Seniors are suffering from low interest rates that diminish the value of their hard-earned savings for retirement. College students are graduating with huge debt and moving back in with their parents unable to find a good job. Our debt recently topped $16 trillion, equating to $50,000 for every man, woman, and child. And we continue to run more than $1 trillion deficits. Additionally, Medicare will be insolvent in 2024 and Social Security in 2033. Although the causes of the initial recession are complex, the recovery has

been hampered by a failure of leadership. Washington, D.C., should be charged with dereliction of duty. Democrats, Republicans and independents all agree the country is MARTHA MCSALLY on the wrong path but instead of solving problems and bringing certainty to the tax, regulatory, spending, and debt environment, they pick petty partisan fights. Businesses are justifiably hesitant to invest or hire since there is no confidence of future tax rates, government mandates, and penalties such as the unaffordable health care program. Banks are not lending due to unknowns over regulations and small business owners are struggling to get credit. The looming “fiscal cliff ” created by Congress adds even more uncertainty, further disincentivizing growth, investment, and job creation. Due to the failures of Congress, we all face tax increases on all incomes plus deep cuts in defense and domestic programs. This will put America into a deeper recession while risking our national security. Congress is more concerned about their next election than the next generation.

Washington is broken and the economic uncertainty they have created is wrong. When I see something is broken, I fix it. When something is wrong, I stand up to make it right. We need to change Washington by changing the people we send there. We must get our economy going again and put people back to work. Small businesses are the engine of growth, creating seven of 10 jobs. We need to reform the tax code, simplify it and bring corporate rates down to bring jobs back to the U.S. We need to roll back suffocating regulations. We need to access our energy resources and improve education and job training. We need to reduce government spending and ensure our military is ready to protect us. My opponent Mr. Barber voted against multiple bi-partisan legislative initiatives that would help small businesses and bring certainty to the economic situation. He voted against legislation that would put a moratorium on new regulatory burdens on small businesses. He voted against the “No More Solyndras Act,” the failed stimulus program that put taxpayers’ money into failing companies. He voted to rob $716 billion from Medicare to pay for the government take-over of healthcare that increases taxes and penalties on small businesses. He voted against streamlining the permit process for American energy

development and simplifying the tax code. Finally, he voted against a bi-partisan plan to avoid “sequestration,” the devastating cuts that will risk our national security and result in thousands of lost jobs here in Southern Arizona. Due to my commitment to fight for economic growth, small businesses, and putting middle-class people back to work, and Mr. Barber’s anti-small business and anti-jobs voting record, I have been endorsed by the National Federation of Independent Businesses, U.S. Chamber, Mational Association of Wholesalers, of Commerce, National Association of Home Builders and Associated Builders and Contractors. All groups supporting small and large businesses nationwide. I will bring the leadership, guts, education and a results-driven mindset to Congress to lead efforts towards bi-partisan solutions that bring certainty to the economy, empower small businesses, and put our middle class back to work. Too much is at stake and I am committed to champion thoughtful, pragmatic solutions to cure us of the “Uns.”

Martha McSally is the Republican candidate for the U.S. House of Representatives from Arizona’s Congressional District 2. Here website is http://mcsallyforcongress.com

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INSIDE TUCSON BUSINESS

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Inside Tucson Business 10/19/12