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CARESS OF STEEL Elegent Iron brings a woman’s touch to metral fabricating PAGE 13

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • OCTOBER 26, 2012 • VOL. 22, NO. 21 • $1

Hot air

$13.5 million rehab planned for UA icon PAG E3

Proposed gas pipeline sparks fear among residents Page 9

Renewable Mexico U.S. ambassador lauds country for sustainability efforts Page 9

Corner of zero and zero

Otis Blank

New mixed-use project breaks ground downtown Page 31

20 Women of Influence who make Tucson better Inside Tucson Business Insid

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WOi Women

of Influence

2012

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If this week’s issue of Inside Tucson Business feels a little heavier than normal, you can thank a woman — make that lots of women. mak IIncluded this week is the annual special section announcing the 2012 Women of Influence Wo in Southern Arizona as nominated by you, readers of Inside Tucson rea Business. This year, the Bu number of honorees has nu doubled to 20. do Our honorees are: • Carmen Bermudez, Mission Managed ment and Trust m • Ginny Clements, Golden Eagle DistribuG ttors • Carolyn Compton,

Critical Path Institute (C-Path) • Valerie Diaz, Sol Casinos • Colleen Edwards, Tucson Appliance and TWS • Jacquelyn Jackson, Tucson Values Teachers • Raena Janes, La Paloma Academy and APEX Charter Services • Kathleen “Rocky” LaRose, University of Arizona Athletics • Barbara LaWall, Pima County Attorney • Lori Mackstaller, UA Sarver Heart Hospital • Jeannette Mare, Ben’s Bells • Kelle Maslyn, Comcast • Jane McCollum, Marshall Foundation and Main Gate Square • Linda McNulty, Lewis & Roca • Karen Mlawsky, the University of Arizona Health Network • Cindy Parseghian, Ara Parseghian Medical Research Foundation • Jane Poynter, Paragon Space Development

• Barbi Reuter, Picor Commercial Real Estate Services • Neelam Sethi, philanthropist • Amber Smith, Metroplitan Pima Alliance Within this short space we couldn’t possible list all that each of this women have done but there’s no doubt that the Tucson region is better because of what they bring to the table. In addition to the special section, please also take note of the List of Women-owned businesses starting on page 14. This year’s List contains the names of nearly 250 businesses that are at least 50 percent owned by a woman. All of this leads up to the ninth annual Women of Influence breakfast celebration, from 7 – 9:30 a.m. Nov. 16 at the Marriott University Park Hotel, 880 E. Second St. Tickets are $50 each and can be purchased online at www.InsideTucsonBusiness.com/WomenofInfluence or contact Jill A’Hearn at (520) 295-4236.


2 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

OCTOBER 26, 2012

3

NEWS Tucson’s unemployment rate drops to 7%

Rehab of UA’s Old Main balances structural repair, preservation

Otis Blank

The September jobs report for the Tucson region is one of the more encouraging since the beginning of the economic recession nearly eight years ago. People are returning to the workforce, total employment is up and the unemployment has dropped to 7.0 percent. According to data from the Arizona Office of Employment and Population Statistics, 424,100 Tucsonans of a total civilian workforce of 456,200 were working last month. That’s up from 418,600 out of a workforce of 418,600 and an unemployment rate of 7.6 percent in August. Despite the positive trend, the total civilian workforce was down from 466,800 in September 2011 when 427,700 were working. That produced an unemployment rate of 8.4 percent. September is a month that normally sees jobs added, especially in the government sector as schools go back into session, but this year the statewide gains were 1.2 percent higher than the average over the previous 10 years. The statewide gains in the private sector were even stronger, adding 5,200 jobs compared with an average over the previous 10 years of 1,400. Of the 5,000 jobs added in the Tucson region from August to September, 4,500 were in state and local schools, while 500 were in the private sector and nearly all were service industry jobs.

No original plans exist to help Sundt Construction rehab Old Main.

By Roger Yohem Inside Tucson Business As the contractor to renovate historic Old Main on the University of Arizona campus, Sundt Construction is anxious to apply its rehabilitation and preservation expertise to the 121-year-old icon. “It’s still very early in the evaluation process, finding out what’s wrong and right structurally with the building,” said Kurt Wadlington, senior project director

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for Sundt. “We have to be sensitive to the building’s existing condition to come up with a plan to restore it. Clearly, we want to get back Old Main’s historic character. It has to be brought up to today’s building codes,” he added. “We’ll have to find that balance between the two: preservation and structural repair.” Built on a $38,000 budget, Old Main was the first building on campus. When the UA opened on Oct. 1, 1891, with 32 students,

Old Main housed the university’s classrooms, library, offices and sleeping quarters. San Xavier Mission, built about 100 years earlier, is the only building in Arizona older than Old Main. In 1938, Old Main “was condemned because the university didn’t have the funds for upkeep,” said Wadlington. In stepped the U.S. Navy to save it from demolition. CONTINUED ON PAGE 6

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

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ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

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

Payroll tax hike set to take effect in Jan. A temporary reduction in the Social Security payroll tax will expire at the end of the year and 163 million American workers could see their taxes increase, unless Congress votes to extend the reduction. The tax increase would cost the average worker about $1,000 annually and cost $4,500 for a two-earner family with a six-figure household income, according to the Associated Press. Lawmakers, however, are hesitant to extend the reduction due to the fact that such measures would endanger the revenue stream that funds Social Security. The Financial Times reports that Democrats in Congress are looking to extend the payroll tax cut. For the past two years, the tax cut has resulted in higher take-home pay. Social Security is funded through a 12.4 percent tax on all wages up to $110,100. Half of the tax is paid by employees, the other half paid by employers.

EDITION INDEX Public Notices 6 Inside Media 10 Meals and Entertainment 12 Arts and Culture 12 Profile 13 Lists 14-24 Calendar 25

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

28 30 31 32 32 35


4 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

NEWS Former Pella site sells for $5.25M A 261,000 square-foot manufacturing facility that’s been vacant since Pella Corp. shut down its window manufacturing operations there in November 2008 has been purchased for $5.25 million by a California real estate investor. The buyer is BH Pella Drive LLC, an affiliate of BH Properties, Los Angeles, a company that specializes in turning around underperforming and troubled assets. The site, at 6700 S. Pella Drive off Valencia Road west of Interstate 19, is part of a 25.7-acre property. The facility includes 40,000 squarefeet of headquarters-style office space. Pella Corp. acquired the property in 2006 from Weiser Lock. “The buyer will not occupy the building, it will be available for lease. And we do already have prospects for the space,” said Steve Cohen, with Picor Commercial Real Estate Services and who co-represented buyer BH Properties with Russ Hall. The property was listed for sale at $9.9 million.

Royal has ‘big’ car news named MINI Cooper

UPS, FedEx send mixed messages for holidays The nation’s two major package express delivery companies sent mixed signals this week about their forecasts for the upcoming holiday season. In its quarterly financial report, UPS said it expects year-over-results to be up between 5 and 7 percent and notes that its shipping is changing. About 40 percent of its business is now made up of shipments from businesses to consumers, up from about one-third overall a few years ago. Those kinds of shipments, generally from Internet retailers, will account for about half of all shipments during the holiday season. Despite its lackluster performance for the year until now, UPS anticipates its holiday business will exceed Wall Street forecasts. Separately this week, FedEx said it expects holiday shipments will be up 13 percent this year but that it will try to hold down costs hiring about the same number of temporary employees as it did a year ago. The company said it expects to hired about 20,000 temporary employees system-wide and handle 289 million shipments between Thanksgiving and Christmas.

State minimum wage to go to $7.80 per hour Arizona’s minimum wage will increase to $7.80 per hour effective Jan. 1 from the current rate of $7.65 per hour. The rate is based on the annual Consumer Price Index measured each August. The state Industrial Commission says that this year, the cost-of-living rose 1.7 percent from August 2011. Although there are provisions to increase the minimum wage there is no provision for decreasing it.

By Kaity Sitzman Inside Tucson Business The next new “big” car to hit the streets of Tucson is from a company better known for being “mini.” Royal Automotive Group will open the market’s first MINI dealership early in 2013. MINI of Tucson should be welcomed by those in the region who already own a MINI Cooper and for those who have been interested in them since they were introduced in the U.S. in 2002 but were avoiding the trip to the Phoenix area. Construction already has started on the dealership at 4635 E. 22nd St., which had been the location for Royal Kia, which in April was moved to 4333 E. Speedway. The facility is being renovated. Neal Weitman, general manager of Royal Automotive Group, says securing the Mini dealership was a big deal. “Mini awarded the Royal Automotive Group over a few other dealerships in town,” he said. Part of Weitman’s excitement for MINI comes from the personality of the car itself, he said. “They are fun, interesting and people talk about them,” Weitman said. There is no specific demographic the dealership will target. People who buy a MINI want something different, he said. “MINI has a really great, unique culture.

They are very in tune with the personalities of their owners,” said Todd Helmick, marketing director for Royal, adding that plans already are in the works for social media contests and interactive events to get Tucson excited about MINI. “I would like to get all of the customers who currently own MINIs in town to get in touch with us,” Helmick said. “We want to get their opinions and have them help shape what the dealership experience is going to be like.” The goal, he said, is to meet or exceed customers expectations. From the time more than 35 years ago when Paul Weitman opened Royal Buick, then at Speedway and Columbus Boulevard, the mission statement for Royal Automotive Group has been to “treat every customer like family.” Over the years, Royal expanded in Tucson, adding dealerships for Lexus in 1989, Kia in 1994, Jaguar in 2000, a second Lexus dealership in 2003, Land Rover in 2005, and Cadillac and GMC in 2009. “Like any of the Royal brands, customers are an integral part of the experience,” Helmick said. “We have a great time with our customers and we plan to continue that into the future with MINI.” Royal says it anticipates hiring between 20 and 30 people at MINI of Tucson. Employment applications are being taken on-

BIZ FACTS

MINI of Tucson Expected to open by Spring 2013 4635 E. 22nd St. www.minitucson.com (520) 325-6464 (325-MINI) line at the dealership’s website — Minitucson.com. It also has an information hotline at (520) 696-2878. The Mini compact sports car was originally created in 1956 by Sir Alec Issigonis from a sketch he had drawn on a restaurant table cloth. British Motor Cars began manufacturing the cars three years later and they became a British icon of the 1960s. The new MINI was introduced for sale in the U.S. in 2002 and is known for being a high-performance car with gas mileage averaging about 25 miles per gallon in city driving. According to MINI’s website, suggested retail prices for new Minis start at $20,400 for a base hatchback and can go to more than $36,000 for top-of-the-line John Cooper Works model roadsters and convertibles. Royal Automotive Group says there are literallly thousands of special edition MINIs that can make each car almost unique.


InsideTucsonBusiness.com

OCTOBER 26, 2012

5

NEWS

Downtown’s resurgence rewarding, challenging for architects and engineers

This Week’s

Good News Showing downtown support More than 250 Tucson Electric Power (TEP) employees participated in an effort to support downtown restaurants and other merchants during the company’s downtowndining event Wednesday (Oct. 24). Employees wore bright blue shirts while patronizing businesses within walking distance of TEP’s Corporate Headquarters at 88 E. Broadway. Some employees wore polo shirts printed with “Dining Downtown: It’s the Bright Thing to Do.” More than 500 TEP employees commute to the company’s headquarters downtown that was opened at the end of last year.

By Roger Yohem Inside Tucson Business

Trending up The buzz generated by the city’s “mostactive construction zone” was the topic of an Oct. 19 event called “Trending Up,” which looked at downtown through the eyes of the Southern Arizona Architects and Engineers Marketing Association (SAAEMA). Featured participants included Mayor Jonathan Rothschild; architects Corky Poster, with Poster Frost Mirto, and Sonya Sotinsky and Miguel Fuentevilla, owners of Fors Architecture & Interiors; and a marketing clinic by Kristyn Meza and Chris Baker of Strongpoint Public Relations and Market Research. “A few key things have happened the last 10 months to really lay the groundwork for the future of downtown,” Rothschild said. Specifically, he cited reforms to the land use code, faster approval times by the city for building permits, cross-training of building and code inspectors, and the Government Property Lease Excise Tax, a new city tax incentive program for downtown and designated gateway corridors. “The east side of downtown is really hopping,” Rothschild said. The mayor said he believes the six-story student housing addition going up atop Plaza Centro Garage, 345 E. Congress St.,

The Tucson Roger Yohem

As an architect, part of Rick McClain’s job is to envision what an old building or vacant space could be. It’s often a fine line of design that must strike a balance between preservation, renovation and creating profits from patronization. In 2011, his firm was contacted by a prospective tenant to evaluate a small commercial space in downtown Tucson owned by developer Scott Stiteler. At the southeast corner of the renovated 1 North Fifth Building, the space was “just a shell and dirt floor,” said McClain, a partner in Repp Design & Construction. But that was the perfect palette for Ari Shapiro to create his vision for a “bigcity” styled establishment from scratch. The structure was in a resurgent part of downtown and along the Sun Link modern streetcar route now under construction. “Every great city should have a great urban downtown. This was a dream of mine, to create a downtown gathering place,” said Shapiro, who turned that open-dirt shell into Sparkroot Coffee Bar & Fare, 245 E. Congress St. “I wanted to be a player in Tucson’s revitalization,” he said.

Sparkroot owner Ari Shapiro (front left) hosted an “urban crawl” for architects and engineers.

will be a signature project “that will transform activity downtown and all along Fourth Avenue. That will really solidify the link between the university and downtown.” To continue the relationship-building process, University of Arizona and city officials “talk regularly,” he said. The discussions include new UA President Ann Weaver Hart with an emphasis on exploring what the university could bring downtown. “Much of the focus has been on entrepreneurship, start-ups and technology,” said Rothschild.

Too many entities From the perspective of the architectural and engineering community, Sotinsky and Fuentevilla discussed the process of working with the city to get designs, plans and projects approved. The husband-and-wife team has done about 10 projects downtown and is currently involved in six more. Based on their experiences, they say trying to renovate, redevelop or build a new downtown is rewarding and challenging at the same time. “Since we’re dealing with historic buildings, there are many, many entities that have jurisdiction on projects. It’s a big time commitment to deal with them all,” said Fuentevilla. For example, the firm was buried in 30 different meetings for a street-side curb project. Sotinsky characterized the excessive oversight as akin to “dealing with the world’s largest home owners association.” Although both complimented officials

for recent improvements, the idea of private-public collaboration is yet to spread throughout city government. “The bureaucratic oversight. It’s easier to build anywhere except in downtown Tucson. We can do projects in Phoenix in half the time,” said Fuentevilla. “The bureaucracy has started to make the transition, but it has to be all the way from upper management down to all staff.” The first stop in SAEEMA’s urban crawl event was at Shapiro’s Sparkroot. Since opening in August 2011, the trendy hangout has been a success, especially a mezzanine area that has impressive views. Shapiro, who also owns Xoom Juice, has urban roots and eatery experiences in New York and San Francisco. The Trending Up tour also made stops along East Congress Street at Buffalo Exchange, The Hub Restaurant and Creamery, and The Playground Bar and Lounge. “There are so many positives in downtown now, as we shift to a better focus like student housing and restaurants instead of an aquarium,” said Fuentevilla, referring to a proposal made more than a decade ago that never materialized. Poster, who also is a professor emeritus at the UA College of Architecture and Landscape Architecture, pointed out that the downtown-area construction “is very significant since most of it has taken place during a serious recession. The projects are worth hundreds of millions of dollars. We have made more progress downtown than anyone gives credit for.”

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

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

Wrightstown project dead It looks as if Wrightstown Elementary School, 8950 E. Wrightstown Road, won’t be torn down for a rental home project so it’s back to square one for Tucson Unified School District as to what it might do with the school that was closed in 2010. The plan, proposed by Roger Karber Realty Advisors, was to build 108-rental homes on the 9.2-acre site. The TUSD school board voted 3-2 in May to sell it for nearly $1.6 million, contingent on getting the necessary approval for the development. The plan was met head-on with objections from neighbors and the fact that it doesn’t fit with the current neighborhood plan meant the project would have faced a potentially costly and difficult rezoning. As a cost-saving measure due to declining enrollments, TUSD closed nine schools in 2010. Two so far have been sold but in both cases the buildings are being repurposed. Wrightstown was the first project that would have involved tearing down the school for redevelopment.

‘No’ on sales tax One ballot measure that appears headed for defeat is Proposition 204 that seeks to make permanent a 1 percent sales tax that’s otherwise due to end May 31, 2013. An Oct. 17 auto-dial poll commissioned by the Arizona Chamber of Commerce and Industry (which opposes the proposition), found 58.3 percent of likely voters opposed the measure and 34.6 percent favored it. The 7.1 percent who said they were undecided doesn’t come close to closing the differential gap of 23.7 percent.


6 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

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

BANKRUPTCIES No filings for businesses.

FORECLOSURE NOTICES GT Outreach Program Inc. 4701 E. 25th St. 85711 Tax parcel: 131-04-1910 Original Principal: $112,000.00 Beneficiary: Vantage West Credit Union Auction time and date: 11:30 a.m. Jan. 17, 2013 Trustee: Howard A. Chorost, 21 E. Speedway GT Outreach Program Inc. 4742 E. Andrew St. 85711 Tax parcel: 131-04-2270 Original Principal: $131,920.00 Beneficiary: Vantage West Credit Union Auction time and date: 11:30 a.m. Jan. 17, 2013 Trustee: Howard A. Chorost, 21 E. Speedway

LIENS Jeff’s Total Performance Inc., 219 W. Calle De Las Tiendas, Green Valley. Amount owed: $4,520.05. Law Office Jennifer Maldonado and Jeniffer Maldonado, 100 N. Stone Ave., Suite 1105. Amount owed: $7,051.96. Care Give Connection of Arizona LLC and John C. Rambow and Dana A. Rambow, 698 E. Westmore Road, Suite 210. Amount owed: $37,569.19. Meadows Enterprises Inc., 1368 W. Roger Road. Amount owed: $2,074.11. Robert Wolkin PC, 3301 E. Camino Campestre. Amount owed: $1,983.72. Elizabeth D. Bushell PLC, 8987 E. Tanque Verde Road, Suite 309-171. Amount owed: $23,987.46. Beach Baby Tan Club Ltd LLC, 5635 E. River Road. Amount owed: $24,098.96. Southern Arizona Medical Specialists Ltd, 4733 N. First Ave. Amount owed: $4,364.07. Zeb-Tech Services and Al-Tech Inc., 3895-A N. Oracle Road. Amount owed: $40,567.78.

State liens (Liens of $1,000 or more filed by the Arizona Department of Revenue or Arizona Department of Economic Security.) Four Star Liquor and Edward Phillip Lopez, 2650 W. Santa Louisa. Amount owed: $20,819.22. Grand Cafe, 1119 N. G Ave., Douglas. Amount owed: $7,504.13. My Big Fat Greek Restaurant and Olympia Dining LLC, 6650 N. Oracle Road, Suite 111. Amount owed: $57,503.42.

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

Arizona Commercial Lighting & Supply, 1436 E. 17th St., against Pennington Street Partners LLC and Pennington Restaurant Partners LLC, c/o Fenton Investment Co. Inc., 6700 N. Oracle Road, Suite 233. Amount owed: $1,687.68. Agate Steel Inc., PO Box 117, Scottsdale 85252, against 5101 East Speedway LLC, doing business as Parker Automotive, 5101 E. Speedway. Amount owed: $43,051.00. Yaqui Electric Co. LLC, 209 S. Huachuca Blvd., Huachuca, against PS From Aeropostale, 125 Chubb Ave., Fifth Floor, Lyndhurst, N.J. Property: 7401 N. La Cholla Blvd., Suite 185. Amount owed: $24,000.00. Ascent Aviation Services Corp., 6901 S. Park Ave., against Falcon Air, 2601 NW 105th Ave., Doral, Fla. Property: McDonnell Douglas MD83 N836RA. Amount owed: $124,856.21. Ascent Aviation Services Corp., 6901 S. Park Ave., against Vision Asset Company LLC and Wells Fargo Bank Northwest, 260 Charles Lindbergh Drive, Salt Lake City. Property: Boeing 737-300 N742VA. Amount owed: $124,818.78. Star Aluminum, 809 W. Irvington Road, against Arizona-Sonora Desert Museum, 2021 N. Kinney Road. Amount owed: $21,530.00. Architectural Openings, 910 S. Campbell Ave., against LBSC LLC, 12792 N. Seacuff Road, and Bank of Tucson, PO Box 12766, 85732. Property: 1018 W. Tortolita Mountain Circle. Amount owed: $9,100.00.

Otis Blank

Federal tax liens

Re-roofing with an all-copper roof may be an option. CONTINUED FROM PAGE 3

During World War II, the Navy needed space and converted it into a training school. “Then after the war, the Navy became our client to get it back in shape,” Wadlington said. Under that $20,000 contract, Sundt fixed exterior walls, replaced failing roof trusses, patched and re-finished interior walls, and made various other repairs. The university then reclaimed Old Main as a functional building. In 1972, the building was listed on the National Register of Historic Places. From 2006 to 2008, another $4.6 million was spent in partial upgrades, mostly on the first floor.

No original plans From this point forward, Sundt will be working without the benefit of any early construction drawings. Wadlington said there are no original plans to be found. Although the building’s intended new use is still to be determined, several structural issues already have been identified. The building and surrounding porch are on separate foundations. To minimize heat gain during the summer, the main building was set about six feet below ground level. As the footings have settled, the porch has pulled away. “It’s not a dangerous situation, we have to figure out what the problem is. There is evidence of underground water issues we’ll have to deal with. Likely, the roof isn’t draining far enough away from the foundation. Maybe there is a plumbing leak,” explained Wadlington. “We’ll have to investigate the source of the moisture.” Old Main’s eight downspouts dump roof water close to building’s exterior. If poor drainage is the problem, it’s probable that sections of the porch would have to be re-

built. Sundt would salvage as much of the original floor as possible. Other damage is from water that has “wicked” up into the base of the foundation’s stone joints, causing them to deteriorate. Two types of stone were used based on the common practices of the day. Mexican stone was set as a wainscot around the base, an architectural touch on the lower part of a structure. From “A” Mountain, volcanic rock was used for decorative landscaping. “We’ll preserve both,” Wadlington said. “There also are beams and unreinforced columns that somehow, will have to be reconstructed.” Sundt plans to fence off the site by December. Then, shoring-up the porch is a priority. Another priority is preserving the visual appeal of the building’s design. It is similar to a southern plantation home because it was designed by a Louisiana architect, Wadlington noted. “That was the architectural style of the times.” Another intriguing characteristic from that era is the original terne-metal shingles that still cover parts of Old Main. Much of that lead-tin style roofing is in poor condition and it is no longer made. “We’re doing research to determine the best replacement material,” said Wadlington. The odd-shaped shingles would have to be custom-manufactured using modern technology. “Duplicating the look” with tincoated lead or some other alloy may be an option. “Some people want to make the roof all copper,” he added.

A look inside Inside Old Main, much of the historic character has been lost through decades of continuous remodeling. The original wide

“axis corridor” on the second floor is gone and ceilings have been lowered to cover modern ductwork with acoustic tiles. “When they needed another office or more space, they just punched the wall out into the corridor. I suspect the second floor will need a lot of work,” Wadlington said. The floor’s load-bearing structure for weight also will be analyzed. The mechanical system will be replaced and plumbing, lighting, electrical and safety upgrades made as needed. On Oct. 17, UA president Ann Weaver Hart toured Old Main for the first time. One of the options being considered is relocating her office there. University officials will decide the future use, or “program” for Old Main. “They still have months of meetings ahead of them. Their program will determine what we have to design and build,” Wadlington said. In June, the Arizona Board of Regents approved $13.5 million to rehab Old Main. Sundt’s design/build role is about $9 million with a completion date of January 2014. The regents also approved $27.4 million in renovation to Bear Down Gym. The two projects are related, to house UA staff who will move their permanent offices from Old Main to Bear Down. Sundt also will do this rehabilitation. Since preservation projects are so interesting and time intensive, Wadlington looks forward to working with the project’s architectural team. He highly respects Poster Frost Mirto, 317 N. Court Ave., and Ntd Architecture, 2940 N. Swan Road, as “specialists in historic preservation. We are so confident in their talents.”

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


InsideTucsonBusiness.com

OCTOBER 26, 2012

7

TRAVEL

Do you drive to Phoenix to fly to San Diego? TIA wants to know why? By David Hatfield Inside Tucson Business OK, for those of you who have occasion to go to San Diego, here’s a question: Why do 30 percent of you drive to Phoenix Sky Harbor International Airport to take your flight? “It makes no obvious sense,” says Mary Davis, senior director of business development and marketing for the Tucson Airport Authority. Among Davis’ responsibilities is overseeing efforts to try to persuade airlines to boost service at Tucson International Airport. She says she is continuing to learn things from the airlines about how they make their decisions. Every once in a while there will be a statistic she can’t readily explain. Such is the case about San Diego. According to the airport authority’s business travel survey conducted earlier this year, 30 percent of people flying from the Tucson region to San Diego drive to Sky Harbor to catch a flight. At first, airport officials weren’t so sure they believed it but Davis says further research indicates the statistic is valid. Among the things that makes this a headscratcher is that these are people who are either driving or taking ground transportation to Phoenix. They’re not flying to Phoenix and making a connection at Sky Harbor.

What’s more, the scheduled flying time to San Diego from either Tucson or Phoenix is about the same. If anything, it’s about five minutes longer flight-time from Phoenix. So people are driving 1½ to two hours to Phoenix to spend about the same amount of time on a plane. Fares might play a role in the decision. A check earlier this week found one-way fares for a mid-December flight from Phoenix to San Diego ranged from $70 to $207 while flights that same day from Tucson to San Diego ranged from $98 to $241. While the flights from Phoenix are cheaper, there is the additional cost involved with traveling and parking at Sky Harbor. Not to mention the added time. If you’re among the 30 percent of people who’ve driven to Sky Harbor to take a flight to San Diego, Davis says she would like to hear from you. Why do you do it? Contact Mary Davis at mdavis@tucsonairport.org or call her at (520) 573-4840.

307,901

11.3%

323,882 11.9%

-15,981

-4.9%

295,951

10.9%

296,559 10.9%

-608

-0.2%

US Airways strike?

Service notes On a positive note, United Express will resume its second daily non-stop flight from Tucson to San Francisco next month and then by the end of the month will boost it to three flights a day Wednesdays through Sundays. That’s the most number of non-

Airline passenger traffic through Tucson International Airport in September fell 4.7% to 267,583 from 280,886 in September 2011. Available seat capacity in September was down 7.2% from a year ago. Through nine months of 2012, passenger totals are down 0.3%. This chart shows each airlines’ passenger totals and market share so far for 2012 compared to the first nine months of 2011.

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

Nonstop destinations

Southwest

934,971

34.5%

Share

916,377 33.7%

+18,594

+2.0%

617,809 22.7%

+19,034

+3.1%

371,156 13.6%

+24,002

+6.5%

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

American

636,843

23.5%

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

United (Continental)

395,158

14.6%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways

Slow September September has often been the slowest month of the year at Tucson International Airport but that was especially so this year. Numbers from the Tucson Airport Authority show that 267,583 passengers went through the terminal last month, down 4.7 percent from September 2011, and the slowest month in nine years, since September 2003 when there were 246,490 passengers. Much of the decline can be attributed to significant cuts in capacity by the airlines. A combination of cuts by United and the withdrawal entirely of Frontier reduced the number of daily flights to Denver to four last month from seven in September 2011. And in September Delta had suspended — though now has resumed — its flights to Minneapolis. Average daily outbound seat capacity from the airport was down 7.2 percent to an average of 5,518 per day. On average 80.3 percent of available seats were filled in September. That’s up from 78.5 percent filled in September 2011. Passenger traffic through Phoenix Sky Harbor International Airport is also down. Through August, the latest month data is available, the numbers are down about 103,000 passengers, or about 0.4 percent to just under 27.4 million for the first eight months of the year.

TUCSON INTERNATIONAL AIRPORT 2012 PASSENGER STATISTICS

Airline

stop flights United has ever offered between Tucson and San Francisco. The business travel survey that found 30 percent of Tucsonans driving to Phoenix to fly to San Diego also identified San Francisco as one of the most in-demand destinations for improved non-stop flights. United is scheduled to maintain at least two flights a day between Tucson and San Francisco through March. On the negative side, Southwest is planing to drop one of its two daily non-stop flights to Albuqerque effective April 14. Demand for flights between Tucson and Albuquerque isn’t especially strong and many of the passengers who were taking the flight were making connections on to other destinations. Since Southwest has begun building up service in Denver, many of those passengers are now going that route instead.

Phoenix

Delta

Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska

89,197

3.3%

80,073

2.9%

+9,124

+11.4%

53,796

2.0%

116,480

4.3%

-62,684

-53.8%

-8,519

-0.3%

Seattle

Frontier

Discontinued service as of May 18

Total

2,713,817

2,722,336

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

Unable to come to an agreement after seven years, flight attendants at US Airways are scheduled to take a vote starting next

week for a possible strike. The Association of Flight AttendantsCWA said the voting will take place from Oct. 31 through Nov. 20. The union represents 6,700 flight attendants who are still working under two separate contracts dating back to before the 2005 merger of American West and US Airways. The union says it has been trying to reach a joint agreement and that twice this year, its members have rejected proposed contracts. The first time was in March over an agreement that had been reached with the help of the National Mediation Board. Then in September, membership by a vote of 51 percent to 49 percent rejected a five-year management proposal. Under federal law, airline workers cannot strike until after the National Mediation Board releases the two sides from negotiations and they go through a 30-day cooling down period. That means that if the membership should vote for a strike and the two sides don’t negotiate and are released by the mediation board, a strike could come as early as the December holiday season. A spokeswoman for US Airways told Reuters that the airline had been advised by the mediation board that no additional talks are likely to be set.

14 fare hikes In case you might not have been keeping track, the nation’s airlines have instituted 14 fare increases so far this year, the latest was Oct. 16 when Southwest raised fares $4 to $10 per round-trip, depending on the length of the flight. Its competitors matched the fare. Interestingly, United had tried the same thing less than a week earlier but wasn’t matched so it rolled back the fares only to jump on board again after Southwest’s move. Passengers looking for the silver lining in these increases can take some solace in the fact that the average fare is up 4.5 percent to $375.35 compared with an 8.3 percent increase in 2011, according to the Airline Reporting Corp., an Arlington, Va., company that manages payments for tickets between travel agents and airlines. The forecast is for fares to continue going up in 2013, though by smaller percentages. Contact David Hatfield at dhatfield@ azbiz.com or (520) 295-4237. Inside Business Travel appears the fourth week of each month.


8 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

SOCIAL MEDIA SOCIAL MEDIA IN THE WORKPLACE

What employees should know if and when working for you According to statistics, 62 percent of adults worldwide now use social media. It’s no wonder then, that one of the biggest issues in the workplace is the role played by social media. The issue has forced legal experts to grapple with multiple questions, such as whether it is appropriate for an employer to conduct an Internet background search on an applicant, whether it is appropriate for an employer to control employees’ online activities, whether it is appropriate for an employer to discipline employees for communicating about work-related topics via social media and whether an employer owns the social media accounts used by employee to promote the employer’s business. Here are some tips for employers to consider, starting from the pre-hire process through to the end of an employment relationship:

Before the hire Employers should use caution when performing Internet background checks on applicants. While it is clear an employer can learn a good deal of information about a potential employee from the Internet, it is not so clear whether the employer should use that information to make hiring decisions. In some cases, an employer may obtain useful information that is legally harmless, and in other cases, it may obtain information that exposes it to liability for such claims as discrimination and negligent retention and hiring. Even

if the employer does not use the information in the hiring decision, the fact that the employer obtained such information before making a determination may cause the appliLORI HIGUERA cant to believe a legal violation occurred. As a best practice, if an employer conducts an Internet background search on an applicant, the employer should take two precautions: Do not request access information for the applicant and ensure that the person performing the search is not the same person who will make the hiring decision.

At the hire Employers should maket it clear who owns the social media forum employees use to promote the employer’s business. As employers leverage social media to increase their business, cases have arisen concerning who owns the pages and accounts for an employee’s Facebook, LinkedIn and Twitter accounts when such social media forum is used by the employee for work-related purposes. Even if employers ultimately prevail in such litigation, it is not without considerable expense. As a best practice, an employer should have a social media policy that clearly

discusses appropriate content for such communication and provides for ownership of social media forums during and after employment.

During employment Employers should beware when disciplining an employee for work-related comments made over social media. The National Labor Relations Act protects an employee’s right to communicate with co-workers regarding wages, hours and working conditions. This protection applies to employees in both unionized and non-unionized workplaces. Thus, while there are circumstances where an employer can terminate an employee for his or her personal online communication performed off-the-clock and outside the office, there are other contexts where an employer cannot take such action. The National Labor Relations Board has said that it would not be a violation of the National Labor Relations Act to terminate an employee for posting photos of an embarrassing and potentially dangerous accident at an employer’s adjacent dealership. But, the board has said it would be a violation of the National Labor Relations Act to terminate an employee for posting mocking comments and photos with co-workers about serving hot dogs at the employer’s car event. As a best practice, employers should establish a narrow social media policy that does not chill employees from

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discussing the terms and conditions of their employment. Before taking disciplinary action against an employee for communication via social media, the employer also should carefully consider whether such conduct is protected by the National Labor Relations Act.

After employment ends Employees should appreciate their social media activity is fair game following termination. Employees often do not appreciate that, in the event of litigation, their social media activity may not be considered private or confidential. Courts have permitted employers to conduct discovery of former employees’ social media communications relevant to the employees’ emotional distress claims, noting that the communications may be relevant to the cause and the severity of the employees’ alleged emotional distress. As a best practice, in the event that an employer becomes involved in litigation against a former employee, the employer should consider whether social media activity may be relevant to the claims alleged.

Contact Lori Higuera, a labor and employment attorney with Fennemore Craig, at lhiguera@fclaw.com. Higuera represents employers in internal and external investigations, arbitration, mediation, litigation, and administrative proceedings.

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OCTOBER 26, 2012

9

NEWS

Gas pipeline proposal brings out few but passionate Altar Valley residents By Keith Rosenblum Inside Tucson Business SASASBE — Those with apocalyptic predictions showed up: A proposed 60-mile pipeline to carry natural gas from the Tucson region to the border here would create a corridor for Mexican drug cartels and alien smugglers, they said. The pipeline would conduct electricity from nearby power poles, explode, create 40-feet craters and endanger the lives of students at three rural schools. It would enrich Mexico and produce little in the U.S. except higher natural gas prices. Those with more moderate warnings were in attendance, too. Lighting, noise, traffic and occasional gas leaks would permanently alter the behavior of insects and mammals alike, destroy pristine habitat, they cautioned. And, against an overwhelming rejection of a proposal to bury a 36-inch line that would move 200 million cubic feet in its first year through the Altar Valley, there were a few voices urging neutrality — and even one who expressed support. If public hearings alone were to determine whether the pipeline will be built, then gatherings Oct. 18 and 20 would have meant a death knell for a project that proposes to bring natural gas for the first time to northwestern Mexico. But hearings, part of the government’s scoping process, held at at Robles Elementary School near Three Points and two days later at

San Fernando Elementary School in Sasabe, are just one facet of an environmental impact statement process now underway. The hearings, conducted by the Federal Energy Regulatory Commission (FERC), are held to examine whether either of two routes proposed by pipeline operator Kinder Morgan Inc. can meet federal standards. At both hearings, Daniel Tygret, senior analyst for regulatory affairs for Kinder Morgan, did his best to appease a group not ready to be persuaded of the pipeline’s merits. Houston-based Kinder Morgan, which in August acquired ownership of El Paso Corp., parent of El Paso Natural Gas, Co., has a history as a conscientious steward of the land, Tygret said. The pipeline, which would run from Picture Rocks northwest of Tucson through the Altar Valley to an interconnect at Sasabe, Sonora, would provide residents with royalties and increase tax revenues by at least $3.5 million annually as well as create several hundred jobs, Tygret said. It would pose no safety hazards to ranchers or wildlife. During the meeting, Tygret for the first time named Comisión Federal de Electricidad, Mexico’s national power company, as Kinder Morgan’s client for the project. The audience of 25 at Robles Elementary filled but one-third of the seats available and only eight people spoke to the FERC team. The Sasabe hearing was attended by 30, of whom a dozen spoke. The process also includes writ-

ten comments which must be submitted by Saturday (Oct. 27). Of the two routes proposed by Kinder Morgan, an eastern would go through Buenos Aires National Wildlife Refuge and a western route would pass through state and private property. Earlier this month Pima County went on record saying it preferred construction of the pipeline along the eastern route. In an Oct. 3 letter to U.S. Rep. Raúl Grijalva, D-Ariz., Pima County Administrator Chuck Huckelberry, wrote the route through the Buenos Aires National Wildlife Reserve “is the most justifiable and prudent route.” The county could have rejected both routes. Residents picked apart Kinder Morgan’s argument that the pipeline is needed. In Sasabe, Walter Lane, of the Santa Margarita Ranch, said nothing in the application demonstrated a need, instead calling it a desire by two companies to do business. Absent the element of “need,” he said, the company should be denied permits through Altar Valley and required to use existing pipelines through Nogales or Willcox. Marshall Magruder, whose home in Tubac is near a Kinder Morgan pipeline, also insisted the company should be required to use that line. It would be up to the Mexican power company to then do its own work in Mexico to accommodate U.S. rules, he said. Both companies ought be required to post performance bonds, he added.

At the hearing at Robles Elementary School, Peter L. Steere, an anthropologist who works for the Tohono O’Odham Nation, noted that both of the proposed pipeline routes cross through lands sacred to the tribe. Steere said he was speaking as an individual, not on behalf of the tribe, but said he was delivering a request that FERC visit with Tohono O’Odham council. The most emotional presentation was made here by Melissa Owen, who with her husband owns a nearby ranch. The couple had “worked our entire lives to own and work the 648 acres,” she said. “This project is about greed, plain and simple. We have to say, “no,” to fat-cats in Houston and Mexico City.” Cindy Granger, who said she had recently found an AK-47 in her yard, said she believed more drug trafficker would come north with a new right-of-way. The lone speaker in favor of the project was Barbara Stockwell, whose family has lived in Arivaca for 70 years and now earns a living making mesquite honey. The pipeline would be of immense value to northwestern Mexico, she said. Believing a pipeline to the border would cause new illegal entry is absurd, she said. “Nothing will stop people, whether it’s a wall or a road, or laws. It won’t make things worse because it’s already bad enough.” The scoping process should take at least a year and up to 18 months, after which an order would be issued and a 30-day appeals process.

U.S. Ambassador: Cross-border, renewable cheaper energy is at hand By Keith Rosenblum Inside Tucson Business HERMOSILLO, Sonora — A who’s who in renewable and traditional energy generation along the U.S.-Mexico border were told Tuesday that an unprecedented era of innovation, investment and less-expensive energy is in the making and the time for information sharing is now. The man behind that assessment, Earl Anthony Wayne, U.S. Ambassador to Mexico, traveled the 1,200 miles from Mexico City to pass that message on to 250 private sector, government and non-governmental organization attendees at Border Energy Forum XIX. In an address delivered in both English and Spanish, the ambassador said “the time has come” for interconnections to be built from nation in North, Central and South America to the next and for renewable energies to carry across those borders. The ambassador lauded Mexico for taking the initiative to bring gas to its northern region from Arizona, a strategy that would make energy costs less for northern Mexican households and clean up the atmosphere by replacing generating plants now using bunker oil. The conference, which serves as a show-

case for both pilot programs and successful traditional programs in the four U.S. and six Mexican border states, was held at Hotel Fiesta Americana. This week’s forum, which started Monday and concluded Wednesday, was sponsored by the Texas General Land Office and supplemented by donations from industry and government. Representatives of several firms spoke of strides they have made to move Mexico toward its ambitious goals of renewable energy use. President Felipe Calderón, who leaves office at the end of is six-year Dec. 1, has pushed for Mexico to be using 30 percent energy from renewable sources by 2020 and 50 percent by 2050. Currently, just 7 percent of Mexico’s energy comes from renewable sources. Messages from other speakers at the energy forum, included: • Francisco Acuña, CEO of InTrust Global Investments in Washington, D.C., told of several $20 million to $100 milliion projects in Mexico in which communities were essentially working as shareholders. “Clean energy is the new NAFTA,” he said, referring to the 1994 North American Free Trade Agreement made among Canada, Mexico and the U.S. • Rafael Carmona, promoter of Cleantech Challenge México, a non-profit cultivating

start-ups in clean energy, told of its Mexico competition that attracted 1,000 entries to win a first prize of 250,000 pesos (about $20,000). The firm, connected to Silicon Valley’s Green Momentum, produced ideas ranging from alternative uses of avocado pits to cleaning techniques for piers, changes in concrete to allow for water recovery and auto-sharing programs. • Oscar René Téllez, executive director of Sonora’s Comisión de Ecología y Desarrollo Sustenable Executive (Commission of Ecology and Sustainable Development), announced that the Mexican state’s schools and public buildings will be powered by up to 30 megawatts from a new solar facility. • Antonio Astiazarán, a federal deputy in Sonora, explained how Energía Sonora, he introduced while running for office, now includes 10,500 families who are essentially equity-holders in a program to reduce electricity costs to residents in his district and may serve as model for other states. • Javier Fortuna, a member of Sociedad Mexicana de Hidrógeno, provided a history of the use of hydrogen cells in Mexico from the time a hydrogen-powered 1998 Mercedes Benz drove the streets of Mexico City. • Andrés Bayona Insignares, director at

Promotora Energética E3, which delivers compressed natural gas to industrial regions of Mexico with no pipelines, said Mexico’s use of natural gas has the potential to cut energy costs up to 80 percent. The conference was opened by Sonora Gov. Guillermo Padrés, who announced the state would become host to a solar research and production facility called Centro Mexicano de Innovación en Energía Solar. The center will be staffed by 16 universities in Mexico, plus the University of Arizona; 11 Mexican technological institutes, 15 research facilities and 19 companies including the multinational Spanish corporation Abengoa S.A. Sonora state invested about $25 million to land the solar facility, Padrés said. Padrés also signed a letter of intent with Carlos Domenech, president of Sun Edison Corp., based in Belmont, Calif., to establish a 50 megawatt photovoltaic park in Sonora. The project is to provide the state government with its own renewable energy. And in yet another announcement, the governor said Heliotrop, a French firm, would install high-concentrate photovoltaic cells in a joint $1 million project in Sonora in cooperation with Comisión Federal de Electricidad, Mexico’s national electricity utility.


10 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

MEDIA

Court rules Yellow Pages are protected free speech By David Hatfield Inside Tucson Business

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Earlier this month, most Tucsonans probably found a copy of the new Dex Media Yellow Pages at their doorstep or on their driveway. Whether you consider it a valuable tool and put it someplace to have it handy or a nuisance and immediately tossed in a recycling bin, you might be interested to know a federal appeals court determined this month, the Yellow Pages are protected by the free-speech guarantees of the 1st Amendment. The Oct. 15 ruling by the 9th Circuit U.S. Court of Appeals struck down a two-yearold ordinace in Seattle that required publishers of directories to obtain permits and pay fees before tossing the books at people’s homes. The fees were to go to pay for a program that would allow residents to opt out of receiving the books. Dex Media and other Yellow Pages publishers sued arguing the regulations were unconstitutional. While allowing that technology has replaced the need for phone books and that some people no longer want them, the judges ruled, “The 1st Amendment does not make protection contingent on the perceived value of certain speech.” A similar but even more restrictive ban than Seattle’s, was passed in May 2011 in San Francisco where officials were preparing to launch a program that would prohibit the distribution of Yellow Pages directories to homes unless the receiver had previously requested it and were home at the time of delivery. The plan was supposed to start in May but San Francisco, like Seattle, was sued by the Yellow Pages publishers. Tucsonans may have noticed Dex Media scaled back some deliveries. The Yelllow Pages deliveries this month did not include the residential listings directory, the socalled white pages. Those now are available by request only.

Wildcats TV So much for the light of day for the Arizona Wildcats. Saturday’s 12:30 p.m. game against the University of Southern California at Arizona Stadium will kick off about 12:30 p.m. but next weekend’s game, Nov. 3 at UCLA, is back to a 7:30 p.m. game and will be shown on the new Pac-12 Networks. It could have been worse, Daylight Saving Time ends the next day and from then on, a 7:30 p.m. California time kick-off becomes 8:30 p.m. in Arizona. It will be interesting to see how the TV rights hierarchy plays out as to what time kick-off will be for the homecaming game

Nov. 10 against Colorado. Fox has already tentatively picked the Oregon-at-California game for 1 p.m. (Tucson time). Depending on how things go these two weekends, TV execs will be tryng to pick the most opportune game from among ASU at USC, Oregon State at Stanford, Utah at Washington, UCLA at Washington State as well as Colorado at Arizona. Let’s hope it’s not an 8:30 game.

Savage relaunches Conservative national talkshow host Michael Savage returned to the airwaves Tuesday (Oct. 23) on a line-up of what was said to be about 100 stations, most of those owned by his new syndicator, Cumulus Media. But the new “Savage Nation” doesn’t have a home on Tucson radio. For one, Cumulus doesn’t operate a political talk station in the market so it would be up to another station to carry it. Savage’s former home, Journal Broadcast Group’s the Truth KQTH 104.1-FM, has been approached about carrying the show, according to Program Director Ryan McCredden, but already has program comitments for the 6-9 p.m. weeknight time slot. I guess it’s one of those “stay tuned” things. Stay tuned to see whether Savage is reincarnated or whether listeners simply lose interest.

Programmers vs. satellites It took nearly four months, but Dish Network subscribers once again have access to AMC, IFC, Sundance Channel and WE tv after the satellite operator and AMC Networks agreed Oct. 21 to settle a legal dispute over a moving Voom HD that no longer exists but was partically owned by AMC. In exchange for once again agreeing to carry AMC’s channels, Dish network will pay a settlement of $700 million to Cablevision and AMC Networks, the two owners of Voom. I bring this up as an example of how long stand-offs can go on in light of the ongoing dispute between Pac-12 Networks and DirecTV, which are showing no signs of agreeing to terms.

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


InsideTucsonBusiness.com

OCTOBER 26, 2012

11

GOOD BUSINESS PR CORNER

No spin: IMPACT Awards honor the best in PR Unfortunately, more often than not recently, when public relations campaigns and practitioners are part of the news, there is a negative message, an insincere apology, or the dreaded mention of “spin” involved. In essence, PR usually makes news when it is an example of bad PR. When a PR campaign is done well, the pervasive chatter is about the product or benefactor — not the actual PR work, which is the intention. For this month’s PR Corner column, allow me to present some intentional, overtly promotional, good news about PR practitioners and the excellent work they create. This week, the Southern Arizona Chapter of Public Relations Society of America (PRSA) offered nods to worldclass work presented by local PR and communications practitioners at the annual IMPACT Awards ceremonies at the Stillwell House and Gardens. Forrest Carr, news director at KGUN 9, was the emcee this year. IMPACT Awards are coveted recognition of outstanding efforts and commitment to the practice of public communications. This year’s entries were reviewed and judged by a panel of public relations professionals from the PRSA chapter in Hampton Roads, Va. Here are this year’s award recipients. If you know any of them, please join me in congratulating them on work well executed and received.

Lifetime Achievement Award Lew Riggs, Ed.D., APR, a public relations professional, mentor, philanthropist and trusted friend. He began his career in the U.S. Air Force and has 50 years of PR experience. He earned his MBA from George Washington University and a Ph.D. in Education from the University of Arizona. Riggs currently serves as executive director of the Tucson Osteopathic Medical Foundation and is an active member and co-founder of PRSA Southern Arizona, board member of 88-Crime and a Tucson Rotarian.

Media relations • StrongPoint Public Relations and Market Research work for the Worthy Publishing/Christina-Taylor Green Memorial Foundation’s “As Good as She Imagined” book tour. • StrongPoint Public Relations and Market Research work for the Girl Scouts of Southern Arizona/Arizona Cactus Pine Council’s Girl Scouts of Southern Arizona 100th Anniversary.

Public service announcements • Bolchalk Frey Marketing, Advertising and Public Relations work for the Reid Park

Zoological Society’s Reid Park Zoo New Elephant Habitat-Expedition Tanzania.

Special events • Bolchalk Frey Marketing, KIMBERLY SCHMITZ Advertising and Public Relations work for the 390th (Bombardment Group) Memorial Museum’s Veterans Day open for military veterans.

Groundbreakings/grand openings • Russell Public Communications work for the Center for Neurosciences’ launch of its Radiation Therapy Center of Excellence. • University of Arizona Office of University Research Parks work on the dedication of the Solar Zone for Tucson Electric Power, Solon, Amonix and AstroSol.

Feature stories • Freelance journalist Alexis Blue for her article “Heroes Among Us” written for the University of Arizona Health Network.

Newsletters and magazines • UA Office of University Research Parks, Arizona-Mexico Commission and BizTucson magazine for a special section on the Arizona-Mexico Commission in BizTucson.

Seminars/receptions • Arizona Center for Innovation (AzCI) for its dedication and ribbon-cutting ceremony.

Video/audio programs • UA Office of University Research Parks and WestWord Vision on “Thinking the Impossible” done for the UA’s 2012 Innovation Day event.

Community relations campaign • Tucson Airport Authority for the Working Together campaign.

External communications campaign • UA Office of University Research Parks for its Border Tec program.

Integrated communications campaign • Russell Public Communications for its work with the Nissan Automotive Team to raffle a Jim Click Leaf for charity. As part of the judging, two Best in Show awards were handed out, selected from among all submission as best exemplifying excellence in research, planning, implementation and results.

Best in Show - Tactics • UA Office of University Research Parks for the Solar Zone dedication.

Best in Show - Campaigns • Russell Public Communications for the Jim Click nissan Leaf for charity raffle.

Certificates of Excellence • Russell Public Communications, two certificates • The University of Arizona Health Network • UA Office of University Research Parks

• Shelley Shelton, the University of Arizona • Tucson Airport Authority

Contact Kimberly Schmitz, owner and consultant of Spur Public Relations, at Kimberly@SpurPublicRelations.com or (520) 247-5778. Schmitz is external communications chair for the Southern Arizona Chapter of the Public Relations Society of America, whose members write this monthly column. The next column is scheduled to appear in the Nov. 9 issue.


12 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

Don’t blink or you might miss Amelia Grey’s Cafe

Exhibit shows ‘Pollinators’ keeping desert blooming

through Jan. 26. The tea service consists of If you blink while driving along Campbell four courses and includes Champagne, Avenue just south Fort Lowell Road, you might miss Amelia Grey’s and that would be a holiday pastries, scones and tea, of course. Cost is $26. Reservations required. shame. The restaurant named after propri• Loews Ventana Canyon, etor Annette Hartman’s 8-year7000 N. Resort Drive — www. old daughter, opened in June on loewshotels.com/en/Ventanathe west side of the street and Canyon-Resort — (520) 299-2020 serves breakfast, lunch and afternoon team from 7 a.m. to 5 p.m. Mondays through Saturdays. Hartman, who has been in the There are some decidedly catering business for many years adult ways to spend Halloween and most recently ran a place next Week. inside the Copper Country • RA Sushi, 2905 E. Skyline Antique Mall on East Speedway, Drive in La Encantada, will hold has decorated Amelia Grey’s with MICHAEL LURIA a Boo Bash at 7 p.m. with the feel of a modern, well-appointHalloween-themed food and ed farm-house look, including drink along with a DJ and a fresh flowers on each table. It’s befitting costume contest with prizes. something you’d see in Sunset magazine. • Maynards Market, 400 N. Toole Ave. in The menu offers a variety of breakfast the Historic Depot, is hosting a “Devil’s Night specialties, cold and toasted sandwiches, Dinner with Brother’s Macabre” the night salads, desserts and pastries. High tea, which requires 24-hour advance reservations, is $17 before Halloween, starting at 7 p.m. Tuesday (Oct. 30). The four-course dinner, with wine and includes tea; scones with condiments of pairings, and the show costs $100 person. homemade lemon curd, Devonshire cream Call (520) 545-0577 to make reservations. and jam; petite sandwiches, and gourmet • Lodge on the Desert, 306 N. Alvernon desserts. Regular tea service for $5 features Way, is featuring a “Organs and Craft Brew” the tea and scone with condiements. dinner the night after Halloween, Nov. 1. I’m glad the sign caught my eye. Warning: The menu isn’t for the faint of heart. • Amelia Grey’s Café and Catering, The organs on the menu include sweet3073 N. Campbell Ave. — http://amebreads, duck liver, tripe and beef tongue. The liagreyscafe.com — (520) 326-2663 five-course menu, $60 inclusive of tax and tip and you get to keep your beer glass. Call (520) 320-2014 to make reservations. On the subject of afternoon tea, it Contact Michael Luria at returns to Loews Ventana Canyon Nov. 1 mjluria@gmail.com.

Halloween for adults

Spot of tea?

Film

A fun exhibit is on display in the Porter Hall Gallery at the Tucson Botanical Now playing at the Loft Cinema, 3233 E. Gardens, 2150 N. Alvernon Way. Called Speedway, are the horror found-footage “Pollinators,” the work by local artist flick “V/H/S” just in time to scare folks for Catherine Eyde focuses on desert creaHalloween, and “The Well tures such as birds, bees and Digger’s Daughter,” a French bats and their crucial part in film about star-crossed lovers in keeping the desert blooming. France prior to the start of World The show will up through Nov. War I. A couple of film documen12. taries are at the Loft: “Diana Another new exhibit, “Faces Vreeland: The Eye Has To Down The Tracks” is up Travel,” about the fashion through Nov. 25 at the Obsidian industry, and “Detropia,” about Gallery, 410 N. Toole Ave. in the Detroit. Historic Depot. It features the Opening at the multiplexes: works in paint or on paper of the latest James Bond film HERB STRATFORD Titus Constanza, Nick Geor“Skyfall” with Daniel Craig, and giou, Laurel Hansen and Alec “Cloud Atlas,” from the creators Laughlin, all of whom work in the Wareof the “Matrix” films starring Tom Hanks house Arts District. and Halle Berry in multiple roles.

Jazz Inspired by espionage and underworld movie music, the Dmitri Matheny Group draws on classic film noir, B-movies, spy thrillers and crime dramas for its performance at 7 tonight at Tohono Chul Park, 7366 N. Paseo del Norte. The concert, titled “Crime Scenes Jazz Noir” marks the end of the Tucson Jazz Society’s fall Jazz Under the Stars series. Tickets are $26.50 with discounts for jazz society members, military and students. Buy them at http://tucsonjazz.org.

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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InsideTucsonBusiness.com

OCTOBER 26, 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 The Tax-Free Trust of Arizona annual outreach meeting features speakers include Arizona economist John Lucking, who will provide an economic update for Tucson and the state of Arizona, and Todd Curtis, portfolio manager of the Fund. REGULAR MEETINGS

Meet Toastmasters Every Wednesday 6:15 a.m. Chaffins Diner 904 E. Broadway Contact: Hitch Paprocki hitchpaprocki@hotmail.com (520) 907 4455 www.toastmasters.org

noon to 1 p.m. Sullivan’s Steak House 1785 E. River Road RSVP: Johnna Fox (866) 551-3720

rebecca@nariofsouthernarizona.com Cost: Free to members and first timers Networks @ Work First Wednesdays 11:30 a.m. to 12:30 p.m. Sullivan’s Steak House 1785 E. River Road Contact: Ricardo Carrasco at (520) 9778812 or Ricardo@gsfloans.com Cost: Meal from menu ($12-$25)

Networking Entrepreneurs of Tucson Networking breakfast First and third Wednesday 7 to 8:30 a.m. Hometown Buffet 5101 N. Oracle Road Information: (520) 240-4552

Networking Club in Northwest Tucson Ali Lassen’s leads club First Wednesday

Greater Oro Valley Chamber Monthly Luncheon

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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

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NAWBO Monthly Breakfast Fourth Tuesdays, 8 to 9:30 a.m. Locations vary Info: Morella Bierwag, (520) 3262926 or info@nawbotucson.org 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 National Association of the Remodeler’s Industry (NARI) Tucson Third Tuesday 5:30 p.m. Varies, call for location Information: (520) 310-3386

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Fourth Thursday of the month 7 to 8:30 a.m. El Charro Café 7725 N. Oracle Road http://the-chamber.com Greater Oro Valley Chamber Monthly Membership Breakfast Second Thursday 11:30 a.m. Loews Ventana Canyon 7000 N. Resort Drive Cost: $20 members / $30 non-members Contact: Alex Demeroutis (520) 297-2191 alex@orovalleychamber.com

25


26 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

OCTOBER 26, 2012

CALENDAR Northwest Power Group (referral group) Mondays 7:30 a.m. to 8:30 a.m. Hilton El Conquistador Country Club, 10555 N. La Cañada Drive RSVP: (520) 229-8283 Cost: $50 one-time fee (first two visits free) Northwest Power Group Networking business group Every Tuesday 7:15 to 8:30 a.m. Village Inn 6251 N. Oracle Road RSVP: Don at (520) 777-4240 Cost: Breakfast Oro Valley Business Club Monthly Luncheon First Thursday of each month. Carrabbas Italian Grill 7635 N. Oracle Rd. Information: www.scoretucson. org, (520) 670-5008 Cost: $15 members and non-members Oro Valley Kiwanis Club Every Wednesday 6:45 to 8 a.m. Resurrection Lutheran Church Outreach Center 11575 N. 1st Ave. Information: Gary Kling (520) 818-3278 Pima Rotary Club Weekly meeting Every Friday except the last Friday of the month 11:30 a.m. to 12:30 p.m. Chad’s Steakhouse 3001 N. Swan Road Information: www.pimarotary.org Note: Bring your own lunch Pima Rotary Club Monthly membership mixer Last Friday 5 to 7 p.m. Location varies Information: pimarotaryclub@yahoo.com Project Management Institute (PMI) Tucson Chapter Second Tuesday of the month 5:30 to 7:30 p.m. Hotel Arizona 181 W. Broadway Information: www.pmi-tucson.org or archboldk@consulting.ky Cost: $25 members, $30 nonmembers Rotary Club of Tucson Every Wednesday Noon Doubletree Reid Park Hotel 445 S. Alvernon RSVP: Mary Laughbaum (520) 623-2281 www.tucsonrotary.org Rotary Club of Tucson Sunrise Thursdays 7 to 8:10 a.m. Arizona Inn 2200 E. Elm Street Information: rsuskind@mac.com Rotary Club of Tucson Sunset Tuesdays 6 to 7:30 p.m. El Parador Restaurant

2744 E. Broadway Information: (520) 349-4701 SAAEMA Monthly Program Third Tuesday 11:30 a.m. to 1 p.m. Viscount Suites Hotel 4855 E. Broadway Information: www.saaema.org RSVP: m.sage@wt-us.com Cost: $20 members, $30 nonmembers Saguaro Business Club Business leads meeting Every Thursday 7 to 8 a.m. Mimi’s Café 120 S. Wilmot Road RSVP: (520) 891-5430 Saguaro Rotary Club Every Tuesday 12:10 to 1:15 p.m. The Manning House 450 W. Paseo Redondo Information: Fred Narcaroti (520) 628-7648 Saguaro Toastmasters Every Monday 6:30 p.m. Ward 6 office 3202 E. First Street Info: Mark Salcido (520) 991-6127 or gerontologist@hotmail.com http://saguaro.freetoasthost.com SCORE Southern Arizona free business counseling Every Tuesday, Wednesday and Thursday 9 a.m. to 1 p.m. SCORE Main Office 330 N. Commerce Park Loop Info: (520) 670-5008 SCORE Southern Arizona free business counseling Every Wednesday 9 a.m. to noon Oro Valley Library 1305 W. Naranja Drive Call Oro Valley Library at (520) 229-5300 to schedule Roadrunner Civitan Club of Civitan International SCORE Southern Arizona free business counseling Every Monday 10 a.m. to 1 p.m. Nanini Branch Library 7300 N. Shannon Road Info: (520) 791-4626 SCORE Southern Arizona free business counseling

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

A complete calendar listing is at

InsideTucsonBusiness.com

First and third Tuesday 9 a.m. to 1 p.m. ASBA 4811 E. Grant Road, Suite 261 Call ASBA at (520) 327-0222 to schedule SCORE Southern Arizona free business counseling Every Tuesday 9 a.m. to noon Marana Urgent Care Center (South Classroom) 8333 Silverbell Road Info: (520) 682-4314 SIDT Thursday Breakfasts Soroptimist International of Desert Tucson Every Thursday through Sept. 06 7:15 am The Good Egg 4775 E. Grant Road Contact: Carol Cloutier carolcloutier@cox.net (520) 882-4873 sideserttucson.com Small Business Commission Meeting Fourth Thursday 3 to 5 p.m. Mayor and Council chambers 255 W. Alameda First floor Info: Ellen Hitchings, (520) 791-4343 ext. 245 or small.business@tucsonaz.gov The S.M.A.R.T. Group Every Friday 12 to 1:30 p.m. Nova Home Loans Multi-Media Conference Room 6245 E Broadway Blvd., 5th Floor $25 Members $45 nonmembers Contact: Dale Dillon Lips (520) 4296000 or dillonadvisory@gmail.com Society for Human Resource Management - Greater Tucson Chapter Second Tuesday 11 a.m. to 1 p.m. DoubleTree, 445 S. Alvernon Way Membership:Garrett Kowalewski, (520) 647-9100 garrettk@staffmattersinc.com RSVP by Thursday prior to meeting: www.shrmgt.org Solutions Forum Fourth Monday Noon to 4 p.m. Clements Insurance 6245 E. Broadway, Suite 310 Information: 1-800-716-9626 or (480) 200-5678 RSVP required Open only to business owners and divisional heads Southern Arizona Chapter of Enrolled Agents Third Tuesday 11:30 a.m. Knights of Columbus Hall 601 S. Tucson Boulevard Info: (520) 751-8986, www.aztaxpros.org/sacea Southern Arizona Architects & S Engineers Marketing Association E TThird Tuesday 11:30 a.m. to 1 p.m. 1 SSheraton Tucson 5151 E. Grant Road 5 RSVP: Dana Dietrich ddietrich@eectuc.com R Cost: $25 members / $35 Nonmembers C

27


28 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

PEOPLE IN ACTION NEW HIRES The Mini Time Machine Museum of Miniatures has hired Ben Collinsworth as museum outreach educator. In this role he will bring the museum to classrooms for a multi-sensory experience. Collinsworth is pursuing certification in Elementary Education at NAU Tucson, with an emphasis on preschool to second grade. John Dunne has joined Rosemont Copper as plant maintenance planner. Dunne is experienced in the mining, technology, engineering and maintenance fields. He will be responsible for insuring that all equipment operates efficiently, as well as promoting the safe use of equipment in the workplace. Before joining Rosemont, Dunne was with Freeport McMoRan Copper & Gold in Morenci. Dunne holds a bachelor’s of science degree from

BEN COLLINSWORTH

the New Mexico Institute of Mining and Technology and a master’s of arts degree in administrative management from Western New Mexico University.

public and private sectors. The corporation’s purpose is to improve and promote the economies of Casa Grande, Coolidge, Eloy and Pinal County through job creation.

James Dinkle has been hired as director for the Central Arizona Regional Economic Development Foundation (CAREDF). Dinkle has 24 years experience in economic development. Dinkle was previously president of Dubois Strong in Jasper, Ind. CAREDF is a nonprofit corporation designed as a regional partnership between the

Dr. Esther Sternberg has joined the University of Arizona Center for Integrative Medicine as director of research. She also joins the faculty of the UA College of Medicine – Tucson and the UA College of Architecture and Landscape Architecture (CALA), where she will establish and direct the Institute on Place and Well-Being. Sternberg comes

JAMES DINKLE

STEVEN IVANOFF

{YOUR NAME HERE} To announce a professional promotion, appointment, election, new hire or other company personnel actions, fax press releases to (520) 295-4071, Attention: People; or email submissions to pmcnamara@azbiz.com. Include an attached photo at 300 dpi. to Tucson with her research team and program from the National Institutes of Health (NIH) in Bethesda, Md. She has a medical degree and trained in rheumatology at McGill University, Montreal, Canada, and was on the faculty at Washington University, St. Louis, Mo., before joining the National

Institutes of Health. Regier Carr & Monroe, LLP has hired Steven A. Ivanoff as a staff accountant. Ivanoff will be responsible for preparation of income tax returns, tax compliance and planning, audit, review and compilation

PRESTON GODFREY

services and general accounting. Ivanoff earned his bachelor’s degree in accounting from Concordia University in Seward, Neb. Home Instead Senior Care-Tucson has hired Julie Stafford as community relations manager. Stafford will be responsible for presenting information to the healthcare community and related fields regarding the service offerings of Home Instead Senior Care. Before joining Home Instead Senior Care, Stafford worked in the senior care industry in a variety of senior living and hospice settings.

Kittle Design and Construction has hired Preston Godfrey as a document specialist. Godfrey is an architect and LEED Accredited Professional who ensures LEED compliance and complete project documentation on Kittle’s commercial construction projects. APPOINTMENTS Dr. Iman Hakim, dean and professor of the Mel and Enid Zuckerman College of Public Health at the University of Arizona, has been appointed chair of the

Arizona Biomedical Research Commission (ABRC). Hakim was appointed to the ABRC Commission by Gov. Jan Brewer in December 2011. Hakim is internationally known for her translational research and work on the role of phytochemicals such as green tea and limonene in modulation of oxidative damage and prevention of chronic diseases, such as cancer and cardiovascular diseases. She has been the principal investigator of several large-scale, behavior change interventions and clinical trials. The wide scope and significance of her work can be seen in the range of her current other academic appointments at the University of Arizona, which include the Arizona Cancer Center, the Sarver Heart Center, the College of Medicine and the Department of Nutritional Sciences at the College of Agriculture and Life Sciences.

BRIEFS GET ON THE LIST

NEW IN TOWN

ENTERTAINMENT/SPORTS

Next up: Telephone service providers, Telecommunications equipment providers, Teleservices firms

Walmart opens new south side store

City to close golf course, but still seeks options

A new Walmart Supercenter opens today (Oct. 26) at 1260 E. Tucson Marketplace Blvd., in the Bridges near Interstate 10 and Park Avenue. The company said the new store will have about 300 employees earning an average hourly wage of $12.46 for full-time employees. The store is open 24 hours a day, seven days a week and includes a grocery section, full bakery, meat and dairy products, as well as a pharmacy with two drive-through lanes. The 155,000-square-foot store features many energy-saving elements, part of Walmart’s overall efforts to reduce the total amount of energy used in stores and other operations. These features include LED lights in signage, freezer cases and the parking lot, which use about 50 percent less energy than traditional lighting. The company also plans to provide $15,000 in grants from Walmart and the Walmart Foundation to local organizations at the grand opening. Grant recipients include Tucson Urban League, John A. Valenzuela Youth Center, Holladay Magnet School, Boys and Girls Clubs of Tucson, YMCA of Southern Arizona, Casa Maria Free Kitchen, League of United Latin American Citizens, Iglesia de Dios Comunidad de Amor and Park Villa Casitas.

The Tucson City Council voted unanimously Tuesday (Oct. 23) to close the Fred Enke Golf Course, 8251 E. Irvington Road on the east side, but that could change as part of an overall plan to turn over the operations of city courses to a private management company. City Manager Richard Miranda had recommended the council approve a plan to convert the course to a natural open space park, which requires approval from the National Park Service because the land was purchased as park space using a federal grant. The closure is expected to take place by June 2013. But that could change if the city can find a private management company to take over city golf operations. No decision has been on that issue, however. Under Miranda’s proposal, golf operations at El Rio Golf Course, 1400 W. Speedway, would be curtailed and portions of the property converted to park space. Some golf would remain at El Rio for at least another six years because the city has a contract with a youth golf program at the course. Fred Enke and El Rio were singled out because the courses have sold fewer rounds of golf than the city’s three other courses: Dell Urich and Randolph North, both at 600 S. Alvernon Way, and Silverbell, 3600 N. Silverbell Road.

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: • Nov. 2: Chambers of commerce, Business and trade organizations • Nov. 9: Telephone service providers, Telecommunications equipment providers, Teleservices firms • Nov. 16: Tourist attractions in Southern Arizona • Nov. 23: Hotels, resorts and guest ranches; Travel agencies • Nov. 30: Computer repair and maintenance firms, Computer network development companies 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.

City golf operations are intended to be self-sustaining but have run a deficit for several years, accumulating $7.5 million in debt that the general fund has covered. Rounds of golf sold have been declining since 2002. That year about 300,000 rounds were sold at city courses while in 2011 the number of rounds dropped to 193,000.

College all stars to return to Tucson College football’s top players are scheduled to return to Tucson in January for the Casino Del Sol College All-Star Game. The Jan. 11 game will see some of the nation’s top seniors compete at Kino Stadium, 2500 E. Ajo Way. ESPN had agreed to show the game on its online streaming service, ESPN3. Last year’s roster produced six NFL draft picks including the 98th overall pick, Gino Gradkowski, who went to the Baltimore Ravens. An additional 61 players off of the 2012 roster entered NFL training camps in July. Organizers plan to hold a news conference in November announcing ticket information and additional details about game week events.

HOSPITALITY & LEISURE

Hilton El Conquistador completes $6M makeover As part of a three-year, $3 billion program to renovate all its global proper-


InsideTucsonBusiness.com

OCTOBER 26, 2012

29

BRIEFS ties, Hilton Worldwide has completed an extensive $6 million upgrade of the Hilton Tucson El Conquistador Golf & Tennis Resort, 10000 N. Oracle Road. The makeover features an age-restricted retreat, two new restaurants, a redesigned lobby and lounge, and 16 resurfaced tennis courts. Earlier this year, the 428-room resort opened an executive conference center with eight meeting rooms as part of the renovation. â&#x20AC;&#x153;We are pleased to offer guests attractive new public spaces including a peaceful retreat as well as a new restaurant concept and a premier conference center,â&#x20AC;? said Lynn Ericksen, the resortâ&#x20AC;&#x2122;s general manager. For the past 28 years, the property has earned the prestigious AAA Four Diamond rating. Adjacent to the lobby, the new Epazote Kitchen & Cocktails will serve Southwestern-style cuisine. The Sundance CafĂŠ was upgraded to feature a more modern dĂŠcor. The makeover also created a new age-restricted retreat called Acacia that features private casitas and a secluded pool set away from the hotelâ&#x20AC;&#x2122;s main building. Ashford Hospitality Trust, a Dallasbased real estate investment trust, owns the resort and has defaulted on an original $19.7 million note. Although a public auction has been set for December, Hilton and Ashford officials have said the resortâ&#x20AC;&#x2122;s operations will continue as normal.

HEALTH CARE

Diamond Center honored for pediatric care The University of Arizona Medical Center â&#x20AC;&#x201C; Diamond Childrenâ&#x20AC;&#x2122;s, is one of three hospitals honored at the annual Childrenâ&#x20AC;&#x2122;s Action Alliance â&#x20AC;&#x153;Through the Eyes of a Child.â&#x20AC;? The tribute celebrates outstanding pediatric medical care in Arizona. Banner Healthâ&#x20AC;&#x2122;s Cardon Childrenâ&#x20AC;&#x2122;s Medical Center and Phoenix Childrenâ&#x20AC;&#x2122;s Hospital also were honored. All three facilities have invested in growing exceptional medical care designed specifically for children.

CareMore to open clinic near heart hospital By the end of the year, CareMore Medical Enterprises plans to open a large clinic at 4881 N. Stone Ave. in a retail center space formerly occupied by Cost Plus. The 18,229 square-foot facility at Northmall Center, at the southwest corner of River Road and Stone Avenue, is across the street from the Carondelet Vascular and Heart Instutute, which Carondelet is in the process of closing. CareMore, a chain based in Cerritos, Calif., specializes in senior health care. This will be the companyâ&#x20AC;&#x2122;s fourth location in Tucson. Nancy McClure, first vice president with CBRE represented the landlord in the transaction. She said retail health clinics and urgent care facilities â&#x20AC;&#x153;are certainly active tenants in the local market and across the country.â&#x20AC;? â&#x20AC;&#x153;With the onset of the Affordable Care Act and more doctors moving from private to group practice, these facilities are opening in easy-to-find locations in order to provide consumers with convenient, accessible medical service. Plus, utilizing full-service clinics, like CareMore, will lessen the burden on hospital emergency rooms,â&#x20AC;? she said.

CONSTRUCTION/TRADES

Sundt CFO Ray Bargull retires after 35 years Following a 35-year career with the Sundt Companies, Raymond Bargull has retired as the chief financial officer and executive vice president. Bargull, who joined Sundt in 1977, turned over his financial duties to senior vice president Kevin Burnett who has been working alongside him the past several months to prepare for assuming the role of CFO. Bargull began his Sundt career as payroll manager. Over the years, he also served as senior vice president, controller and general accounting manager. In 1990, he was named CFO and became responsible for directing treasury,

budgeting, auditing, tax, accounting, real estate and insurance activities for the corporation and its subsidiaries. In 1991, he became executive vice president. Sundt Companies, headquartered at 2015 W. River Road, is the holding company of Sundt Construction Inc. Bargull also served on the Sundt Companies board of directors. His official retirement date was Sept. 30. â&#x20AC;&#x153;Ray has been an absolute asset to this company for more than three decades,â&#x20AC;? said Sundt CEO Dave Crawford. â&#x20AC;&#x153;While we are saddened to see him go, we remain grateful for the contributions he has made through his unwavering dedication to guiding the overall direction of Sundtâ&#x20AC;&#x2122;s financial plans and policies. The groundwork he established will continue to pay dividends well into the future.â&#x20AC;? For almost a decade, Bargull has been a board member of the Tucson Metro Chamber and served as its 2009-2010 chairman. His board service will conclude at the end of this year. He also has held leadership roles with the Construction Financial Management Associationâ&#x20AC;&#x2122;s Sonoran chapter, and is a member of the Arizona Society of Certified Public Accountants and the American Institute of Certified Public Accountants.

POLITICS

Red state Arizonans ponying up for Obama Arizona is generally considered a red state politically and, although itâ&#x20AC;&#x2122;s not considered a slam dunk, the state is considered to be strongly leaning to Mitt Romney for president but for a second consecutive month Barack Obamaâ&#x20AC;&#x2122;s campaign has raised more money in the state than his Republican challenger. According to Federal Election Com-

mission filings for September, Obama for America raised $1.05 million in Arizona for the month while Romey for President Inc. received $705,000. In August the Obama campaign raised $713,000 and the Romney campaign took in $412,000. Overall, however, Romney has raised more money in Arizona, $5.6 million compared with Obamaâ&#x20AC;&#x2122;s $4.7 million. That includes money that was raised during the primary campaign.

EDUCATION/RESEARCH

PCC starts pilot one-year â&#x20AC;&#x2DC;sprintâ&#x20AC;&#x2122; degree program Pima Community College is offering ambitious students the opportunity to complete an associateâ&#x20AC;&#x2122;s degree in liberal arts in one year. PCCâ&#x20AC;&#x2122;s new sprint schedule is offered as a pilot program at the East Campus and will require students to maintain an aggressive load of traditional and online courses over a calendar year. Sprint schedule students must take at least 23 credits in the fall and spring semesters, plus 15 credits during the summer 2013 semester. The program starts in spring 2013. Registration for sprint schedule classes begins Nov. 12. The schedule of classes is available online at ww.pima.edu/schedule. To learn more, see the sprint schedule webpage, www.pima.edu/sprint-schedule. Students interested in enrolling should see an East Campus advisor for more information. East Campusâ&#x20AC;&#x2122; student serviceâ&#x20AC;&#x2122;s can be reached (520) 206-7662. The East Campus is located at 8181 E. Irvington Road.

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30 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Some ‘scary’ investment moves you want to avoid A presidential election is almost upon us. But if you have young children or grandchildren, you know the thing coming up that’s really important has to do with Butterfingers, not ballots, and Pop Rocks, not the popular vote. Wednesday night (Oct. 31) is Halloween. For most of us the witches and vampires that will be scurrying around are more amusing than frightening. But if you’re looking to frightened, I’ve got a few in the way of some scary investment moves. • Paying too much attention to the headlines. Some headlines may seem unnerving, but don’t abandon your investment strategy just because the news of the day appears grim. • Chasing “hot” investments. You can get “hot” investment tips from the talking heads on television, your next-door neighbor or just about anybody. But even if the tip might have been accurate at one point, by the time you get to a “hot” investment, it may already be cooling down. More importantly, it simply may not be appropriate for your individual risk tolerance and goals. • Ignoring different types of investment risk. Most investors are aware of the risk of losing principal when investing in stocks. But if you shun stocks totally in favor of perceived “risk-free” investments, you’d be making a mistake because all investments carry some type of risk. For example, with fixed-income investments, including CDs and bonds, one risk you will encounter is inflation — the risk that your investment will provide you with returns that won’t even keep up with inflation and will, therefore, result in a loss of purchasing power over time. Another risk is interestrate risk — the risk that new bonds will be issued at higher rates, driving down the

price of your bonds. Bonds also carry the risk of default, though you can reduce this by sticking with bonds that receive the highest ratings from independent rating agencies. • Failing to TIM BEITHON diversify. If you only own one type of investment, and a market downturn affects that particular asset class, your portfolio could take a big hit. But by spreading your dollars among an array of vehicles, such as stocks, bonds and government securities, you can reduce the effects of volatility on your holdings. (Keep in mind, though, that diversification cannot guarantee profits or protect against loss.) • Focusing on the short term. If you concentrate too much on short-term results, you may react to a piece of bad news, or to a period of extreme price gyrations, by making investment moves that are counterproductive to your goals. Further, if you’re constantly seeking to instantaneously turn around losses, you’ll likely rack up fees, commissions and possibly taxes. Avoid all these hassles by keeping your eyes on the future and sticking to a long-term, personalized strategy. You can’t always make the perfect investment choices. But by steering clear of these “scary” moves, you can work toward your long-term goals and hopefully avoid some of the more fearsome results.

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

W FOLLO DER A E L E TH

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

Company Name

Symbol

Oct. 24

Oct. 17 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.29 0.19 10.19 42.02

0.03 0.30 11.35 42.32

0.26 -0.11 -1.16 -0.30

0.03 0.01 9.56 34.62

0.69 0.24 16.87 27.02

8.70 0.36 2.79 9.31 59.42 8.10 86.94 16.92 58.01 3.72 18.49 37.30 36.42 27.07 30.78 15.99 95.62 38.66 45.95 10.04 75.10 57.52 21.41 38.79 28.30 61.28 61.02 190.72 33.42 59.60 5.24 41.71 35.53 16.72 51.36 25.01 1.50 38.20 32.29 42.02 56.64 38.88 36.44 39.32 47.09 69.33 24.71 17.45 55.15 48.50 16.12 42.82 61.67 11.23 8.75 43.70 35.15 62.83 16.82 27.70 44.01 20.27 120.87 19.86 12.37 33.13 74.82 35.45 33.72 10.54 21.31 53.92 35.50 27.66 5.65 18.67

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 54.06 34.19 27.33 4.82 18.05

-0.48 -0.01 0.00 -0.13 -1.42 -0.57 -3.56 -0.67 -0.38 -0.07 -0.82 -1.13 -0.70 -1.02 -1.64 -0.36 -1.16 -0.67 -0.70 -0.15 -3.41 1.51 -0.15 -3.52 -1.26 -0.11 -0.87 -9.91 -4.27 -1.31 -0.36 -1.61 -0.90 -0.04 -1.45 0.00 0.01 0.07 -0.50 -0.67 -2.69 -1.96 -2.35 -2.23 -1.12 -1.27 -1.87 0.01 -1.51 -1.56 -0.21 -2.26 0.20 -0.22 -0.20 -1.02 -0.44 -0.21 -0.71 -0.77 -1.65 -0.35 -2.86 -1.54 0.75 -1.07 -2.21 -0.38 -0.75 -0.24 -0.75 -0.14 1.31 0.33 0.83 0.62

7.97 0.20 1.48 4.92 50.95 5.30 72.60 16.25 48.36 3.30 14.18 23.30 20.90 15.97 22.19 10.02 78.81 34.10 35.09 7.08 42.54 50.14 10.74 31.08 20.78 34.58 48.82 177.06 27.10 48.91 3.58 28.28 26.10 6.17 42.72 20.98 0.49 15.61 20.34 35.59 45.62 28.69 27.53 16.85 34.87 52.69 19.06 4.72 42.00 36.50 14.73 31.61 28.89 6.25 7.37 37.05 22.56 47.25 14.04 26.06 32.09 15.51 95.04 19.41 3.96 23.72 55.68 28.53 23.19 5.46 14.52 47.00 21.39 7.80 2.99 5.90

11.66 2.79 4.06 10.10 61.40 9.94 90.93 28.53 60.00 4.93 21.16 38.72 37.60 30.00 34.74 16.55 104.43 43.43 49.23 12.25 79.24 67.20 22.79 48.96 30.88 63.20 63.48 211.79 37.70 62.33 5.85 46.49 37.17 17.30 56.66 25.36 1.81 39.25 33.29 43.36 62.83 42.17 41.84 42.59 49.68 71.25 43.18 18.30 58.68 50.82 23.16 45.72 85.90 14.32 10.05 46.08 36.28 65.80 18.66 34.24 46.59 25.84 129.27 58.29 14.51 35.46 77.60 37.35 36.60 10.99 22.81 55.20 40.69 31.53 9.22 20.97

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 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 26, 2012

31

INSIDE REAL ESTATE & CONSTRUCTION

Multi-purpose project breaks new ground tion to the 85714 and 85706 zip codes, the other five were: 85757 on the far west side near Ryan field south of Ajo Way 85746 on the far southwest side in the Ajo Way-Mission Road area 85756 around Tucson International Airport between Interstates 10 and 19 85730 south of Golf Links Road between Saguaro National Park and Davis-Monthan Air Force Base 85741 from I-10 east to La Cholla Boulevard and between Cortaro Farms and River roads. The 85739 zip code also had the most months of inventory at 13.7. Next highest at 9.9 months was zip code 85749, which is the Catalina Highway area north of the Tanque Verde Wash, according to Long Realty.

For three years, Art Wadlund and Rob Caylor toyed with the idea of developing a vacant parking lot downtown at 1 E. Broadway. What type of project would be a good fit? Financially, would it pencil out? Would city officials support it? “There were times we were ready to abandon this. It was taking too much time and cash,” said Wadlund. “But we made it, downtown is going to get a project unlike any done before.” Wadlund, Caylor and several government officials celebrated their persistence Oct. 19 during groundbreaking ceremonies that also “broke new ground” for privatepublic collaboration. Under a new tax incentive program, their six-story, mixed-use building will feature ground-floor retail, commercial offices, 24 apartments and underground parking. Caylor, owner of Caylor Construction, and Wadlund, a founder of Hendricks & Partners commercial real estate, also own the adjacent Chase Bank property at 2 E. Congress St. Caylor’s company plans to complete the $16 million project behind that building by late 2013. “This will be a gateway project for downtown and the modern street car,” said Caylor. “We’re creating value out of a vacant lot at Broadway and Stone, the corner of zero and zero.” The city’s Sun Link modern streetcar project was a major factor in the developers’ decision to move ahead. Their site is right on the streetcar route. On top of that, Pima Association of Governments and its Region-

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

TUCSON REAL ESTATE

10/15/2012

10/8/2012

$143,500 4,541 363 336 199

$150,000 4,507 392 367 170

Source: Long Realty Research Center

Roger Yohem

By Roger Yohem Inside Tucson Business

Contractor Rob Caylor’s downtown development is at the corner of “zero and zero.”

al Transportation Authority, which is coordinating most of the funding for the streetcar, has signed on as tenants and will occupy all the office space. “This is a milestone for the city, the first project in our new development incentive program,” said Tucson Mayor Jonathan Rothschild to about 75 attendees at the groundbreaking. Known as GPLET (Government Property Lease Excise Tax), the city incentive is a tool to spark private investment along designated gateways. Projects must benefit taxpayers more than developers and have economic benefits verified by an independent third party. Basically, the city takes ownership of a project when finished and leases it back to the developers. For up to eight years, the owners are exempt from property taxes while they grow the new venture. “That incentive to invest downtown was huge for us,” said Wadlund.

Hot Rancho Vistoso Welcome back Rancho Vistoso. This Oro Valley community is back as the region’s hottest market for new home construction. “We missed you,” said housing analyst Ginger Kneup, owner of Bright Future Real Estate Research. “September gave us our

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

Current

Last Week

10/23/2012

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%

first look into the good performance we have anticipated there to bolster sales the next few months.” Meritage Homes, DR Horton Homes, Richmond American Homes and Lennar all have picked up the pace of new construction in and around Rancho Vistoso’s submarket of Oro Valley and Marana. Last month, Meritage topped all builders with 22 new home permits there. For the month, Meritage also pulled the most permits at 29, followed by DR Horton with 22. Richmond American and PulteGroup each pulled 16 permits, Kneup said. Across the entire Tucson region, 148 permits were issued. Year-to-date, 1,526 permits have been issued compared to 1,438 for all of last year. New home sales so far this year are at 1,093, a pace that also will exceed all of 2011 when 1,288 new homes closed.

Listings down 25% What a difference a year makes. In the last 12 months, the number of homes for sale in the region has decreased 25 percent to 3,845 last month from 5,155 in September 2011. The most listings were 254 in Green Valley. The far north zip code 85739, basically from Catalina State Park to the junction of State Routes 77 and 79, had 249 listings. This was the second-highest inventory in the region, according to the Tucson Association of Realtors Multiple Listing Service. Regarding sales, every available home (seven) in the Midvale Park 85714 zip code area sold last month. In zip code 85706, 33 of 38 listings sold, an 87 percent ratio. This is the area near Tucson International Airport to the southeast around Drexel Road and Alvernon Way. Going into October, seven zip codes had less than two months of inventory, according to Long Realty Research Center. In addi-

Price metric going up Based on the last 12 months of housing data, the catastrophic impact of distressed foreclosures are coming to an end. Although it will still take months to play out, foreclosures are losing their devastating impact on home prices. In the region’s three largest submarkets, sales prices are trending up primarily because foreclosures are trending down. The most significant metric is the average sales price per square foot that “normalizes the mix” of high-end and bargain properties, according to Malcolm McEwen, president of the Arizona division for Coldwell Banker Residential Brokerage. Since September 2011, Marana home prices have improved the most. The selling price per square foot has risen 33 percent to $124 from $93. Next was in the city of Tucson, where the square-foot metric has increased 19 percent, to $94 from $79. In Sahuarita, the selling price per square foot is up 9 percent, to $79 from $72 in September 2011.

Sales and leases • HealthMedica leased a total of 28,818 square feet at the following four locations: 13,069 square feet at 630 N. Alvernon Way; 7,866 square feet at 6130 N. La Cholla Blvd.; 4,642 square feet at 6565 E. Carondelet Drive; and 3,241 square feet at 13101 N. Oracle Road, Oro Valley. The properties are owned under various affiliates of a real estate investment trust in Tennessee, all represented by Tom Knox and Rick Kleiner, Picor Commercial Real Estate Services. The tenant was represented by Doug Richardson and Terry Lavery, Tucson Realty & Trust Company.

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


32 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Obama or Romney; neither is Reagan According to the political know-italls, the odds are that a majority of us in Tucson will vote to re-elect Barack Obama as president. Despite that, Arizona is considered “strongly leaning to” Mitt Romney which means he would wind up getting the state’s 11 electoral votes. The winner will need to get at least 270 electoral votes. Makes it seem like my puny little vote really won’t make much of a DAVID HATFIELD difference when it comes to deciding who the next president will be. I’ll admit that more than once I’ve skipped voting for president. I vote, just not for president. I’ve never voted for a Bush — neither George Herbert Walker nor George W. At least not when either man’s name was at the top of the ticket. And when the other front-runner’s name was either Michael Dukakis or John Kerry, it made it hard to vote for any viable candidate, so I didn’t. At least I could honestly say I didn’t help any of them get elected. This year we’re hearing from Republicans trying to invoke Ronald Reagan. That got me thinking about Reagan who I got to meet as a young reporter when he was governor of California. When he was governor and later president, I saw him as a master politician who remained focused on the issues he felt were important — fiscal conservatism — but would do what was necessary to get what he wanted accomplished. I believed he picked George H.W. Bush to be his vice president because it was politically expedient, not because he respected Bush. In my first job at a newspaper, the now defunct Sacramento Union, I met Reagan. I was in the parking garage under the state Capitol building with one of the paper’s photographers, Jerry Rainbolt, who the governor recognized. Reagan asked Rainbolt who he was with. “The Union,” he replied. “OK, good. I was afraid if you were with the Bee you’d follow me until I was about to pick my nose and then take my picture.” (The Sacramento Bee, owned by McClatchy, was Democratic. The Sacramento Union, owned at the time by San Diego-based Copley, was Republican.) Rainbolt and I were on assignment to do something else but I don’t remember what it was. Meanwhile, Reagan allowed us to ride up in the elevator with him. Rainbolt took the opportunity to snap a few updated photos in the governor’s office and after exchanging more pleasantries we were on our way. He was personable and impressive. The only other time my path directly crossed Reagan’s was when the Arizona Daily Star sent me to the 1976 Republican National Convention in Kansas City, Mo. Reagan came remarkably close to wresting the nomination away from incumbent Gerald Ford. This time I was covering Reagan and his campaigning was even more impressive. These days I wonder if even Reagan would pass a litmus test to be a conservative, especially when it comes to social issues. After all, Reagan signed a bill that legalized abortion in California. He campaigned against a 1978 proposition that would have banned gays and lesbians from working in schools. (The measure was defeated.) Whatever anyone thinks of him now, Reagan knew how to get some things accomplished. That’s more than what’s likely to happen regardless of who wins the presidency Nov. 6. Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237.

EDITORIAL

Election endorsements, final round In keeping with editorials of the past two weeks, this week Inside Tucson Business finishes up its endorsements for this year’s elections from the standpoint of who might best represent the issues of business and bring the clout necessary to get something done.

Pima County Supervisors All five seats on the Board of Supervisors are up for election this year. One race has already been decided. District 4 Republican Ray Carroll, who has been on the board Board of Supervisors since 1997, will be back. That assures there shouldn’t be a unanimous vote for any new taxes, which is required by state law. Another race will produce a new member on the board because District 1 Republican Ann Day isn’t seeking re-election. By all rights, Ally Miller should keep the district Republican, but Democrat Nancy Young Wright is making a last-minute surge portraying herself as the more moderate candidate. The Tucson Metro Chamber has endorsed Miller. Geographically, Miller’s popularity is in the northwest, Marana and Oro Valley. Young Wright’s strength is the more moderate central Foothills. The only other supervisor’s race with the most potential for change is the west side and western Pima County District 3 contest between Republican Tanner Bell and incumbent Democrat Sharon Bronson. There is an even more divided business community in this race. The Tucson Metro Chamber didn’t make an endorsement and the Tucson Association of Realtors endorsed Bronson. Bell is an intriguing candidate and his election, combined with a Miller win, would swing the majority on the board to Republican and likely mean Pima County Administrator Chuck Huckelberry would be out of a job. Business interests aren’t expressing much interest in changing either of the other two supervisor seats, now held by Democrats Ramón Valadez in District 2 or Richard Elías in District 5.

Arizona Corporation Commission Three seats on the five member regulatory commission are up for election this year. The tendency in this race is to look at this office as the regulatory body for consumers. But equally important is assuring that utilities can deliver safe and reliable services. Solar continues to be the big issue in this campaign. Republicans think the current requirement that investor-owned utilities get at least 15 percent of their power from renewable sources by 2025 is about right. Democrats want to add incentives to raise that. At this point Republicans are correct. But we have one concern. Paul Newman, a Tucson Democrat, is the only commissioner from outside the Phoenix area and that is an important perspective. Because of that Inside Tucson Business endorses Newman and two Republicans, incumbent Bob Stump and Susan Bitter Smith because of her business relationships.

School districts Tucson Unified School District (TUSD) has begun to improve student performance while beating back an entrenched bureaucracy. Inside Tucson Business recommends re-electing two incumbents, Mark Stegeman and Alexandre Sugiyama, despite the fact that both also support Proposition 204, which would make the 1 percent sales tax permanent. For the third seat, Inside Tucson Business recommends Robert Medler, vice president of government affairs for the Tucson Metro Chamber. Additionally, residents of three school districts are being asked to approve budget overrides to maintenance and operations budgets. Inside Tucson Business encourages “yes” votes on Proposition 412 in Sunnyside for a 15 percent override, Proposition 414 in Tanque Verde for a 5 percent override and Proposition 413 in Altar Valley for a 10 percent override. The budget overrides are the very last questions on your ballots but may be the most important.


InsideTucsonBusiness.com

OCTOBER 26, 2012

33

OPINION BUSINESS INK

Herder’s ‘calling’ rooted in years as coach, counselor Which one family member, old friend, neighbor, business contact, former co-worker, college buddy, ex-lover or other long-ago part of your distant past have you been meaning to call for years? In this short life, few things are more rewarding than reconnecting with someone whose ties have been cut by only the long passing of time. And I’m not talking shallow birthday, anniversary and obligatory death calls here. This is about character, a quality deeply based in nurturing. It’s a unique gift and few live it and pay it forward like local business icon Pete Herder. “It has a special definition: a servant’s heart. Get excited about making the other person successful,” said Herder, president of the Herder Companies. He also is an Arizona Commerce Authority founding member, National Association of Home Builders past president, past director of President Reagan’s Commission on Housing and the U.S. Chamber of Commerce and, well, you get the idea. “I’ve learned to be an encourager to people,” he added. For more than six decades, his “servant’s heart” has prompted him to make over 100 phone calls every single year. Herder’s “calling” is rooted in his college days as a coach and youth chaplain. He attended San Jose State University, drawn to its “cradle of coaches” reputation. He wanted to part of that prestigious coaching fraternity. Matriculating there paid off as he became a wrestling and football coach at

San Jose High School and later at San Jose State. In those mentoring roles, he learned to treat everyone equally. “A lot of coaches get into trouble, especially at the elite level, paying ROGER YOHEM more attention to the superior athletes. Less-skilled players contribute more as a group. To make them successful, they also deserve encouragement,” he said. This novel strategy was practiced in tandem with Bill Walsh, a college buddy. The two were football teammates and statistics classmates at San Jose State. After graduating, they grew closer as young coaches and ultimately became life-long friends. They stayed connected and Walsh went on to win three Super Bowls as coach of the San Francisco 49ers. While working on his master’s degree at the University of Southern California, Herder further strengthened his counseling skills by working as a chaplain with Los Angeles County Juvenile Hall. “Looking back, those were wonderful times,” Herder said. Since those early coaching-chaplain days, the calls have never slowed. His basic approach is to touch on health, family and faith; a little business, sports and politics; and reminisce about old business dealings and good times.

Peter Herder

Herder is quick to point out that he has been blessed with many diverse, interesting and unique life experiences that added to his roll call. For example, while serving as president of the national builders association, the Rev. Dick Halverson, chaplain of the U.S. Senate, took Herder on his rounds and personally introduced him to all 100 senators. “I went to a lot of meetings at the White House,” Herder laughed. Today, many of those Washington, D.C.,

politicians and government officials still have Herder’s attention. Sure, they get a birthday call but Herder emphasized his “labor of love” is deeper than a shallow, “Hi, how’ya doing?” “It’s above and beyond the obvious. The last few years, a lot of friends in business have struggled. I’ll ask what they’re going through, then walk with them through their struggles,” he said. “The talk perks them up, makes a difference.” Obviously, the list has gotten shorter with time. Today, those with serious health issues or having lost a spouse are apt to get a call more often. It’s a rough period for them personally, a time when they could use a little lift from an old acquaintance. “That becomes a special blessing to you and person you call,” said Herder. In a sometimes harsh and cold world, Herder is a warm person, a class act. He’s still nurturing, still coaching. Still wants to see people succeed. He still makes the call, to be an encourager and pay it forward. Truth be told, I have been on the receiving end of many of Herder’s calls over the years. I have experienced and welcomed his encouragement, advice and servant’s heart. On both ends of the line, it has been a rewarding experience. Thank you, Pete. Your list is one of the few I am thankful to be on.

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

GUEST OPINION

Super heroes don’t always wear masks We all know the real reason why super heroes wear masks. Super heroes want to keep their focus on doing good rather than being distracted by the glory which ultimately comes with recognition. We learned after our first Superman comic that the second rule of super heroes is only use your super powers when needed. I want to point out a group of super heroes who can’t wear masks, but definitely are using their super powers to make sure your children are safely picked up and delivered to their schools, and they are needed now more than ever. As I drive around our Metropolis on any school day, I’m well aware of evil and villains that call for focused Bus Driver Super Heroes. There are tall building-sized construction cones topped with orange pulsating kryptonite, blocking turn lanes, squeezing off shoulders and moving each

day, just in case you figured out the pattern. Potholes are big enough to swallow the Batmobile, I know I am exaggerating, but their definitely big enough to take down the Batcycle. NICHOLAS CLEMENT There are drivers texting and talking on their Batphones with Alfred and what seems to be the entire Justice League while attempting to drink their double shot, soy milk frappe elixir. They pull up next to school buses thinking they are Spider-Man, trying to sip, type and steer with their webbing. At schools, drivers of cars interpret signs stating “Buses Only” as “Reserved for Green Hornet Fans” and

drive right through and park. OK, I think I made my point, and the last time I checked, the Avengers weren’t looking for Metaphor Man to complete their team. I have always had great respect for school bus drivers. My grandfather was the first bus driver for my small school in Michigan. No offense Grandpa Earl, but you would not last a day driving a school bus these days. Today’s drivers need patience, lightning quick reflexes, expert judgment and they can never be grumpy. Think about your own driving skills. I have been driving 42 years and still can’t pull my truck straight into a parking spot. This summer I backed into someone’s bumper at the landfill. The landfill! Do you know how wide the landfill is? Bus drivers on the other hand are maneuvering 40-feet long, 8-feet wide vehicles on seven-feet wide turns while

making sure the 70 students on board are behaving and safe. I think you agree that school bus drivers definitely meet the criteria for super hero status. They quietly and without wanting to be noticed, pick up their precious citizens of Gotham and protect them from evil every day. I know you have always wanted to help a super hero. When schools are in session is a good time. First of all, if you see a school bus, give the driver a little super hero salute. Second, obey state traffic and common courtesy laws when you are driving. Last, every school district in the Tucson region is looking for more Bus Driver Super Heroes. If you’re interested, please apply!

Contact Nic Clement, superintendent of the Flowing Wells United School District, at clementn@flowingwells.k12.az.us


34 OCTOBER 26, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Vote ‘yes’ on Prop. 409 now; we won’t have a choice later through an open If there’s one area of bipartisan agreebidding process. ment among Tucsonans this election, it’s That will bring this: we need to fix our roads. A “yes” vote much-needed jobs on Proposition 409 is the most cost-effecand economic tive, common-sense way to do it. stimulus to the There’s skepticism among many about community. The the effectiveness of city government, with remaining 1 some even advocating an unrealistic percent will go to “extreme slashing” of government expendipay for the cost of tures. Such people ignore the fact that the issuing the bonds. city endured an unparalleled 20-year period JONATHAN ROTHSCHILD A map showing of population growth of 50 percent, inmajor streets and their expected work dates creased traffic and funding shortfalls, while is available online — tucsonaz.gov/ costs increased 60 percent. Street maintestreetbonds. Most of the money, 85 percent nance has shrunk along with cuts to other city departments. This negative criticism lies of it, will go to the major streets we all travel every day. The other 15 percent will go to with the ghosts of past administrations. I’m now your new mayor. We also have a neighborhood streets. A citizens’ committee will provide oversight so that the bond new city manager, a new director for the money is spent according to plan. Department of Transportation and a new Streets have been selected based on direction forward. This plan is responsible engineering analysis and the goal is to give our and transparent, is endorsed by the roads their maximum life expectancy. Roads Arizona Daily Star, Tucson Weekly, Tucson Metro Chamber, Tucson Utility Contractors in good condition will get preventive maintenance to extend their service life. Roads in bad Association, Alliance of Construction condition will get more extensive repair to Trades, and is a similar plan to those of restore them to good condition. Austin, Texas, Portland, Ore., and other Roads are one area where an ounce of progressive cities. prevention is worth a pound of cure. The In addition, no money from Proposition longer we wait, the more costly the repairs. 409 will go to the city — 99 percent of it is Either way, now or later, somebody is going locked into the actual pavement fixes to have to p payy it. If you don’t change the oil which will be done byy private contractors p

Joe LaRusso, an executive with Western Emulsions and Treasurer of the “Yes On 409” Committee

in your car or go to the doctor, the ultimate cost of fixing the damage is much higher. Our options are few. In the past, cities relied on Highway User Revenue Fund (HURF) money from the state to do major road repair and maintenance. HURF money comes to the state from gas taxes and other motor vehicle fees and taxes. But the state has swept much of our share of HURF money for years now, using that money for other purposes, such as the Department of Public Safety and the Motor Vehicle Division. Although last year the Legislature took away less from cities than

in the past, we still aren’t receiving our full share of HURF money. Frankly, even if we received our full share tomorrow, it would not be enough to take care of the backlog from the years of state reductions. If Proposition 409 is accepted by voters, the city will pivot its street maintenance resources to ramp up affiliated maintenance activities and a 10-year plan is being developed so that we don’t end up in this situation again. No one is going to step in and solve this problem for us. We are going to have to take care of our roads ourselves. Proposition 409 will cost property taxpayers about $18 per year per $100,000 of assessed value. That’s a pretty good bargain for fixing our roads. If we don’t pass Proposition 409, the city will continue to patch potholes, but those potholes will reappear with the rains. There’s no substitute for resurfacing when that’s what a road really needs. There’s no question that Tucsonans deserve good roads. We just have to decide we’re willing to pay for them. Opponents to Proposition 409 offer no viable solutions. Right now, we have a choice. Very soon, we will have no choice.

Contact Tucson Mayor Jonathan Rothschild through his office at mayor1@ tucsonaz.gov or (520) 791-4201.

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36 OCTOBER 26, 2012

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

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INSIDE TUCSON BUSINESS

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


Inside Tucson Business 10/26/2012