Inside Tucson Business 11/09/2012 by Territorial Newspapers

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Residential construction obstruction County hit with civil rights complaint over home’s construction Page 6

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Nagging foreclosures still stress market Foreclosure notices on pace to exceed 2011 Page 19

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Pima County ponders $200 million bond to boost economic development

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2013 Forecast: Tucson will be last in state’s job growth By Roger Yohem Inside Tucson Business Through 2013, Arizona’s employment growth will continue to improve modestly, led by the Phoenix area that is projected to add 93,000 non-farm jobs. Tucson, however is forecast to have the state’s slowest growth rate, adding only 5,800 jobs by January 2014. The Arizona Department of Administration released an updated 2012-2020 employment forecast showing that through 2020, average annual growth rates in all job classifications are expected to be “grad-

ual.” For 2012, Arizona’s job base is forecast to grow 2.1 percent. In the Phoenix area, the anticipated rate is 2.6 percent. For the Tucson area, just a 0.6 percent gain in jobs is forecast. In the “balance” of the state, for all counties outside Maricopa, Pinal and Pima, the projection is 1.6 percent growth. Statewide, the fastest-growing job sectors will be construction; leisure and hospitality; and professional/ business and financial services. In Tucson, the forecast is for the education and health services category to gain the most jobs this year, adding about 1,300 workers. The

second-largest growth sector is leisure and hospitality with 900 jobs. Slight losses are likely in trade, transportation and utilities; and other services. The information sector is expected to lose 200 jobs. For 2013, the statewide data calls for modest employment gains of 2.5 percent. Phoenix-area jobs will grow the fastest at 2.8 percent, or 49,300 jobs. In Tucson, only 3,600 new net jobs are expected, a 1 percent increase. The balance of the state should see 2.3 percent growth, adding 8,000 jobs. Tucson’s leading sectors in 2013 are projected to be 1,400 jobs in edu-

cation/health services; 1,100 jobs in leisure and hospitality; and 400 jobs each in professional/business services, and government. Information services is expected to lose another 200 jobs. Despite many positive economic signs, ADOA warned that many factors could “dampen” local economic growth. Those issues include rising gasoline and food prices, energy and healthcare, low wages, and employment insecurity.

Contact reporter Roger Yohem at ryohem@azbiz.com or (520) 2954254.

2 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

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NOVEMBER 9, 2012

NEWS Thousands of ballots could change election outcomes

County considers $197M bond package for economic development

As of Wednesday there were an estimated 80,000 votes left to be counted in Pima County, according Elections Director Brad Nelson. Roughly 54,000 of the outstanding ballots were early ballots that got dropped off at the polls or arrived in the mail too late for processing before Tuesday’s count. Another 26,000 are provisional ballots that were cast by people at their polling place but there was some irregularity. Nelson confirmed he had heard stories about “misprints or omissions within the signature rosters” at polling places. He said he didn’t know if the problems were in specific areas. “The Recorder is responsible for printing up those registers and rosters and would give you a better answer to that, but my gut feeling, from what I heard from the polls yesterday and traveling through the Tucson metropolitan area, it was countywide,” Nelson said. “I don’t know how deep the problem was, but I know they were experiencing it in Ajo, in midtown, in the Foothills. It seemed to be a little bit of everywhere.” According to Nelson about 39,000 early ballots still needed to be processed to verify signatures before being counted, another 10,000 arrived in the mail on Tuesday and also needed to have signatures verified, and about 13,500 were in the process of being counted. The number of ballots remaining to be counted could impact two extremely close elections, the race between Ron Barber and Martha McSally in Congressional District 2 and Proposition 409, the City of Tucson’s proposal to sell $100 million in bonds to repair roads. Arizona Secretary of State Ken Bennett said Wednesday there were more than 600,000 provisional ballots statewide that still needed to be verified and counted. He said counties have until Nov. 16 to process those ballots.

On the heels of one election, the Pima County Board of Supervisors on Tuesday (Nov. 13) will discuss an economic development proposal requiring voter approval of nearly $200 million in bonds. Among the recommendations of the Pima County Economic Development Plan 2012-2014 are $37 million in spending to expand and improve tourism venues, $30 million toward noise abatement around Davis-Monthan Air Force Base and Tucson International Airport, $30 million to support economic development efforts in smaller municipalities and $10 million to improve infrastructure and access to the University of Arizona Science and Technology Park. When — or if — the county would pursue a bond election is something that is yet to be determined by the Board of Supervisors. By far, the largest portion of the proposed $197 million bond package would be spent on roadway construction and improvement projects. County Administrator Chuck Huckelberry suggests spending as much as $90 million to fund construction of an Aerospace Parkway south of Tucson International Airport that would stretch from Nogales Highway east to Interstate 10 at Rita Road. The plan also would extend Alvernon Way south to connect to with the new parkway. The proposed parkway would realign Hughes Access Road south of the airport and Raytheon Missile Systems’ main plant. The road would connect with Old Vail Connection Road, which would also require widening and other improvements. In a memo to the supervisors, HuckelCONTINUED ON PAGE 7

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

Pima County

By Patrick McNamara Inside Tucson Business

Pima County leaders plan to discuss a bond package to increase economic development efforts in the region. The plan includes roadway improvements and a defense and aerospace industry business park proposal, as seen above.

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

RESEARCHER JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

EDITORIAL DESIGNER DUANE HOLLIS dhollis@azbiz.com

EDITOR DAVID HATFIELD dhatfield@azbiz.com

LEGAL REPORTER CELINDA ARGUE cargue@azbiz.com

ART DIRECTOR ANDREW ARTHUR aarthur@azbiz.com

CARTOONIST WES HARGIS

STAFF WRITER ROGER YOHEM ryohem@azbiz.com

WEB PRODUCER DAVID MENDEZ dmendez@azbiz.com

ADVERTISING DIRECTOR JILL A’HEARN jahearn@azbiz.com

CIRCULATION MANAGER LAURA HORVATH lhorvath@azbiz.com

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

Tucson gas prices continue downward Tucson area gas prices are continuing their downward spiral, to an average of $3.34 per gallon for this week, according to AAA Arizona’s Weekly Fuel Gauge report. The price was down from $3.39 per gallon a week ago and from $3.51 a month ago. The statewide average this week was $3.57½ per gallon, down from $3.64 a week ago.

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

6 8-9 10 12 12 14

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

17 18 19 20 20 23

4 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

NEWS Investor buys last 63 Tangerine Crossing lots As part of a large land portfolio, Mountain Real Estate Capital LLC of Charlotte, N.C., has acquired the last 63 residential lots in the Tangerine Crossing master-planned community in Marana. The parcels were sold by Cleveland-based Forest City Land Group as part of its plan to sell off most of its residential real estate holdings nationally. Overall, Mountain Capital acquired some 1,200 lots in master-planned communities from Forest City. In addition to Marana, the portfolio included a mix of finished and partially finished lots, and undeveloped land for residential and commercial development in Olympia, Wash., and in Pinehurst and Charlotte, N.C. Tangerine Crossing is at the northeast corner of Thornydale Road and Tangerine Road. The 300-acre development features singlefamily homes, open space and a 23-acre retail center. Mountain Capital did not disclose financial terms of the transaction. All 63 Tangerine Crossing lots are fully developed with a future sales agreement in place with Meritage Homes and Maracay Homes, according to Forest City. As the new owners, Mountain Capital will assume and administer those existing contracts.

More charges filed against former Chuy’s owners The U.S. Attorney for the District of Arizona has filed additional indictment papers against two people accused of hiring illegal immigrants and avoiding taxes. Mark Harold Evenson, Paradise Valley, and Christopher Mark Evenson, Oro Valley, owned Adobe Management Services LLC., a company that operated 13 Chuy’s Mesquite Broiler restaurants in Arizona, including seven in Tucson. The pair had previously been indicted on charges they knowingly hired illegal immigrants to work as kitchen staffers at the restaurants, paying the workers cash and not filing or paying the required payroll and other taxes. In April 2011, federal authorities raided several of the restaurants where illegal immigrants were found working. The Evensons, a father and son, were indicted that month along with a bookkeeper working for them. The latest indictment filed Oct. 25 accuses the two of continuing to employ and hire people they knew to be illegally in the U.S. even after the April arrests and indictment. A trial date for the Evensons has been set for April 2013. Former bookkeeper Diane Ingrid Strehlow pleaded guilty to conspiracy to impede and impair the functions of the Internal Revenue Service. Her sentencing is scheduled for Nov. 27. All of the Evensons restaurants in the Tucson region are now closed. The Chuy’s Mesquite Broiler restaurants that are still open in the market are owned by other companies.

ACT University helps contractors with businesses By Alan M. Petrillo Inside Tucson Busienss Contractors and subcontractors generally don’t attend college or university to get advanced degrees, but instead go the route of trade schools, apprenticeships and on-the-job training. In order der to fill in some of the blanks that might occur when operating a contracting business, a Tucsonbased non-profit trade association of specialty contractors and suppliers has put together an educational effort for its members and others to get up to speed on the latest legal, business and safety issues. “Specialty contractors usually don’t attend the University of Arizona to get a degree in plumbing, electrical, HVAC (heating, ventilation and air conditioning), drywall or concrete,” said Jim Kuliesh, president and chief executive officer of the Alliance of Construction Trades (ACT). “They may be the best in their field, but sometimes they need help with their business organization plans. So we’ve formalized a series of seminars, workshops and programs in three major areas and are offering them through ACT University.” The three areas of instruction being offered are the legal aspects of construction, business strategies and safety. Kuliesh noted ACT University will conduct monthly programs led by local specialists in each of the fields. “In the legal field of study, we want to be sure contractors and subcontractors understand the ramifications of all the legal aspects that apply to their companies,” Kuliesh said. Instructors in legal programs will include attorneys Neil Eckel, Pat Durazzo and Eric Hawkins, all Durazzo, Eckel and Hawkins; Terry Esser of Terry P. Esser Law Offices; and Lisa Thompson of Thompson Law Group. Eckel said that subcontractors and suppliers are in continual need of updates on their contractual and payment rights. “The first program we’re doing covers the benefits of having contractual terms

agreed to in advance, what fair contract terms are, and how companies can protect their payment rights,” Eckel said. “We’ll look at the tools subcontractors and suppliers have to collect payment — whether through the Prompt Pay Act, liens, bonds, Registrar of Contractor complaints or stop payment notices. notices.”

Eckel noted that last year the Legislature “made changes to the substantial completion and final completion terms in the Prompt Pay Act, which means we’ll also be talking about those changes.” The business strategies programs through ACT University will revolve running a business, business planaround ru ning, project management, financials and taxes, social media and marketing, Kuliesh said. Business courses will be presented by John Dennis of Strategy1 in Tucson. Dennis, president and cofounder of Strategy1, noted the first session on marketing and social media was conducted last month, while the current month’s course will deal with project management as a key to profitability in a business. “We anticipate that the human resources and leadership courses and a couple of different finance programs will be presented in the months after that,” Dennis said. Safety is a continuing concern among subcontractors and contractors, so the Alliance of Construction Trades regular safety seminars will become part of ACT University, according to Kuliesh. Sharon Powers, a certified OSHA (Occupational Safety and Health Act) instructor and owner of Powers Safety Services, will present the safety programs. Powers noted that OSHAapproved safety classes to be offered through ACT University include fall protection and ladders, fork lifts, confined space, excavation and confident person’s scaffold, among others. “All required training meets OSHA standards and once the individual takes the class and passes the test, he or she gets a training card certifying he or she met the standard,” Powers said. Powers noted that two other programs she expects to conduct will be on rigging safety and signal person safety. “Both of those courses are required by the new federal construction crane standard, so people involved with cranes should be involved in those programs,” she said.

InsideTucsonBusiness.com

NOVEMBER 9, 2012

NEWS

Tuesday’s election results — questions still abound U.S. Senate

Flake defeats Carmona Inside Tucson Business Arizona will continue to be represented by two Republicans in the U.S. Senate as Jeff Flake, who has served six terms representing the Mesa area in the U.S. House of Representatives, won the election to replace Jon Kyl. Flake won slightly more than 50 percent of the vote in the three-way race. Tucson Democrat Richard Carmona a few weeks preceding the election was thought to stand a chance of an upset, but in the end he fell about 5 percentage points behind.

U.S. House of Representatives

Democrats to Congress but McSally-Barber undecided Inside Tucson Business Democrats will continue to represent Southern Arizona in two of three Congressional Districts with the third race not expected to be decided until possibly sometime today (Nov. 9). Ann Kirkpatrick, a Democrat from Flagstaff, appears to have beaten Oro Valley Republican Jonathan Paton in Congressional District 1. The margin of votes between the two was less than 7,300 votes, which was enough for the Associated Press to call it for Kirkpatrick. However, Pima County still had an estimated 40,000 provisional votes county-wide to tabulate. It was unknown exactly how many of those were in the Congressional District. In Congressional District 2, Republican challenger Martha McSally was ahead of incumbent Democrat Ron Barber by fewer than 500 votes. It’s likely the uncounted Pima County votes will be a factor in the ultimate outcome since Barber’s strength was in Pima County. In Congressional District 3 there was no contest, as Raúl Grijalva won with 57 percent of the vote.

but often argumentative demeanor. In the District 10 House race, Stefanie Mach and Bruce Wheeler won the two, giving Democrats a sweep and toppling incumbent Republican Ted Vogt, who was considered a moderate. In other Southern Arizona Legislative races, Legislative District 2, which includes Green Valley and Sahuarita, is also represented entirely by Democrats. Sen. Linda Lopez ran unopposed and Andrea Dalessandro and Rosanna Gabaldon won the House seats. In Legislative District 9, north central Tucson and the Catalina Foothills, Democrat Steve Farley, who had been in the House, was elected to the Senate seat and the House representatives will be Democrat Victoria Steele and Republican Ethan Orr. In District 11, which stretches from Marana and SaddleBrooke nortwest around Casa Grande to Maricopa, Republican Al Melvin won re-election to the Senate and Republican Steve Smith, a former Senator, won election to the House. Adam Kwasman, another Republican, won the other Hosue seat. On Wednesday, lawmakers began meeting to pick leaders for the next two years. Although Democrats picked up some seats that cost the GOP its super majority, Republicans are still in control. Andy Biggs, RGilbert, was elected president of the Senate beating the current president, Steve Pierce, R-Prescott. Biggs is considered a hardline conservative.

This Week’s

Pima County Supervisors

Good News

Ally Miller, incumbents win

$7,800 more for students

Inside Tucson Business There will be only one new face on the Pima County Board of Supervisors next year. Republican Ally Miller beat Democrat Nancy Young Wright, 54 percent to 46 percent, to fill the seat being vacated by Ann Day. Although Miller’s election keeps the seat in Republican hands, the five-member board will continue to have a 3-2 Democratic majority with the re-elections of Democrats Richard Elias, Ramon Valadez and Sharon Bronson. The only other Republican, Ray Carroll faced no general election opposition.

Not to bruise the egos of Inside Tucson Business columnists and radio personalities Chris DeSimone and Joe Higgins, but the folks who turned out for the Auction by the Tucson Utility Contractors Association (TUCA) last week weren’t there to laugh at their jokes as the event’s emcees. They were there to raise money for TUCA’s Sam Witt Scholarship Program. The fund awards four–year college scholarships worth $8,000 to students who have a family member working in the utility construction industry The Auction raised almost enough money to fund one scholarship, coming in at $7,800.

Ballot propositions

INSIDER

The Tucson

116 - Business property tax exmption rejected

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

By Sophia Solis Cronkite News Service Voters by a margin of 56.5 percent to 44.5 percent rejected Proposition 116, a measure that was touted for what it would do to encourage businesses to spend on capital expansion. Dubbed the Small Business Creation Act, the measure would have raised the annual tax exemption on property used for business, agriculture and trade from

County GOP couldn’t deliver The Pima County Republican party put much of its effort into delivering the county for Republican candidate Mitt Romney. Too much of its efforts, according to some party members who worked on get-out-the-vote efforts for local GOP candidates. Many campaigns complained that GOP executive committee members actively discouraged candidates’ volunteers from calling or knocking on the doors of Democrats or independents for fear that those voters might support the local GOP candidates but not vote for Romney at the top of the ballot. Despite these attempts, their efforts fell short, although Romney carried Arizona he didn’t carry Pima County. President Obama took 51 percent of the county’s vote for president while Romney got 47 percent.

CONTINUED ON PAGE 17

El Paso gets it done

Legislature

By Patrick McNamara Inside Tucson Business In what was the most expensive and closely watched Tucson race, Democratic challenger David Bradley defeated incumbent Sen. Frank Antenori. Bradley received 53.7 percent of the vote to Antenori’s 46.2 percent, in unofficial tabulations. Antenori had become a leader in the GOP, earning leadership positions and chairmanship positions in his legislative career. But along the way he also alienated at least some people for his straightforward Raúl Grijalva speaks on election night.

Noelle Haro-Gomez

Democrats make gains but GOP still in control

Tucson is losing its AAA Padres after next year to El Paso and in this week’s election, and Tucson had trouble getting a $100 million bond passed to fix roads. Something is sure different in the political attitude in El Paso. The city there put three “quality of life” measures on the ballot and everyone of them got approved and none were close. One measure effectively raises the total tax on a hotel room another 2 percentage points to 17.5 percent. The money will be used to build a downtown ballpark the Padres will use. But the other two measures were bond proposals that taxpayers will pay on their property taxes. One is for $245 million for park, recreation, open space and zoo improvements and the other is $228 million to fund museum, cultural, performing arts, library facilities, including a multi-purpose performing arts and entertainment and an interactive digital wall. And none of the three came close to losing.

6 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

NEWS Selected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIES Chapter 11 Business reorganization Whetstone Partners LLP, 7101 N. Corrida De Venado. Principal: Ernest L. Graves, manager Kino V LLC managing general partner. Estimated assets: $50,000 or less. Estimated liabilities: $50,000 or less. Largest creditor(s): Schedule not filed. Case No. 12-23881 filed Oct. 31. Law firm: McEvoy Daniels & Darcy Miguel P. Larios and Maria Larios, 4316 S. Lundy Ave. Principal: Miguel P. Larios and Maria Larios, joint debtors. Assets: $328,838.00. Liabilities: $519,603.55. Largest creditor(s): Green Tree, Rapid City, S.D., $173,435.92, and US Bank Home Mortgage, Owensboro, Ky., $126,747.91. Case No. 12-23889 filed Oct. 31. Law firm: C.R. Hyde

LIENS Federal tax liens DJ’s Pizza of Little Italy and CEN Pizza Inc., 150 S. Eastbourne Ave., Apt A8. Amount owed: $2,411.28. Dependable Rooﬁng and Repair LLC and Guillermo Ramirez, 3259 E. Alvord Road. Amount owed: $9,085.23. GRS Landscape Architects Inc., 11047 N. Cloud View Place, Oro Valley. Amount owed: $1,221.28. K&K Insurance Agency and Carlos M. Arias, 540 W. Utah St. Amount owed: $3,800.88. H Three Appliance Inc. and Timothy J. Hunt, 5648 E. Broadway. Amount owed: $1,450.47. Glass Blasters LLC and John Jansen, 5029 E. 29th St. 5029 E. 29th St. Amount owed: $1,126.65. Joe’s Landscape and Maintenance and Joel Vega Manriquez, 300 E. Vaquero Place. Amount owed: $1,924.36. Hollis Graphics Inc., 7360 N. Yucca Via. Amount owed: $8,771.79. Concrete & More LLC and Marcelo Oliva, 140 E. Elm St. Amount owed: $6,628.86. Los Campas LLC and Leonel E. Campas, 13116 S. Highway 191, Pearce. Amount owed: $80,305.48. Taqueria Juanitos Mexican Fast Food and Antonia Suazo, 708 W. Grant Road. Amount owed: $4,524.00. PACE Electrical Construction Inc., 515 E. 24th St. Amount owed: $95,428.71. Professional Appraisals Inc., PO Box 1122, Marana 85653. Amount owed: $59,255.40. Rosa’s Assisted Living Homes LLC and Rosa Quirrin, 3141 W. Painted Hills Ranch Court. Amount owed: $15,169.75. Aria International Inc., 9040 S. Rita Road, Suite 236. Amount owed: $121,733.63. DAR Tile LLC, 4300 W. Bilby Road. Amount owed: $10,335.72. American Meat Co. Inc., 1439 S. Fourth Ave. Amount owed: $63,313.55. Sigifredo Rodriguez LLC and Sigifredo Rodriguez, 2100 W. Grant Road, Suite 120. Amount owed: $12,138.40. Valor Hospicecare LLC and Grant A. Rowe, 1860 E. River Road, Suite 200. Amount owed: $33,835.03. Zytoon LLC, 2744 E. Broadway. Amount owed: $27,207.70. Belyn’s Bonanza LLC, 8431 E. Brookhill Drive. Amount owed: $26,947.95. Crimson Hair-Skin-Nail Salon Inc., 5060 S. Dominion Drive. Amount owed: $28,126.63. Eggrolls Etc LLC, 4955 N. Sabino Canyon Road, Suite 111. Amount owed: $5,067.16. 911 Towing and Recovery LLC and David H. Polsky, 1220 S. Calle De Las Casitas, Green Valley. Amount owed: $6,426.04.

State liens (Liens of $1,000 or more ﬁled by the Arizona Department of Revenue or Arizona Department of Economic Security.) Law Ofﬁces Steven G. Sandoval PC, 177 N. Church Ave., Suite 625. Amount owed: $1,137.98. Crescent Colours and Sharon Crescent, 1010 E. Palmdale St., Suite 103. Amount owed: $2,311.16. Bamboo Club Asian Bistro and Rim Restaurants Arizona LLC, 3420 N. Calle Largo. Amount owed: $74,492.20.

After years of battles over construction of house, owner files legal claim against county By Patrick McNamara Inside Tucson Business When Adi Halili bought a three-acre parcel in the Tucson Mountains in 2007, he hadn’t anticipated it would take three years of battles with Pima County government and some of his new neighbors to try to get a house built. Because of what Halili said was a sustained effort to prevent him from building his family home in the already heavily populated westside foothills, he decided to file a civil rights complaint with the Arizona Attorney General’s Office against Pima County Supervisor Sharon Bronson and Pima County Administrator Chuck Huckelberry. “There were continuous attempts by Sharon Bronson and the Tucson Mountain Association to sabotage us,” said Halili, a physical therapist with a doctorate from Northern Arizona University. He runs two physical therapy clinics in the Tucson region. In his complaint with the Attorney General, Halili said members of the Tucson Mountain Association, a neighborhood association, used their influence with Bronson to get county officials to delay construction of the home on El Camino del Cerro west of Camino de Oeste. The delays, stop-work orders, additional planning and legal expenses cost Halili an estimated $250,000, he estimates. The county issued three stop-work orders during construction following what officials said were violations of code or work done that was inconsistent with plans. During the early stages of construction, for instance, workers had cleared an area larger than allowed under original plans. Halili said it’s true that a larger area was graded, but that it was only done because pipelines from the house to a septic tank and leech field had to be installed. “We restored it as we intended to all along,” he said. To mitigate that and other issues, however, the matter was sent to the county’s development review committee (DRC) where Halili requested an exemption to the hillside development zone ordinance, which seeks to protect desert areas from excessive grading. That’s when the battles with the county and neighbors began. “The moment he went to the DRC, that’s when all hell hit,” said Peter Petrowski, an architect who designed Halili’s house and worked with him throughout much of the building. “They made him jump through hoops on every last item.”

Patrick McNamara

PUBLIC NOTICES

Adi Halili claims his construction of his house, above, was delayed by collusion among Pima County officials and neighborhood association members.

Pima County Development Services Director Carmine DeBonis said the troubles with Halili’s home building project were of his own making. “I think Mr. Halili was one of the biggest obstacles of getting final approval,” DeBonis said. For instance, DeBonis said workers at Halili’s property began construction before permits were granted. As the project moved ahead, DeBonis said there were numerous instances of work occuring outside of what was allowed and in defiance of a list of 24 conditions set by the development review committee. “A path was set in motion that made it difficult for him to get through the approval and occupancy process,” DeBonis said. Halili provided Inside Tucson Business with hundreds of pages of documents and emails, which he says show attempts by Tucson Mountain Association members to derail his project and a pattern of collusion among county officials and association members. Those documents include numerous emails between Bronson and Tucson Mountain Association President Edwin Verburg, who occupied the neighborhood association’s seat on the development review committee. Verburg and other residents watched construction activity at the Halili home closely and communicated regularly with Bronson and county officials. On several occasions, Verburg’s emails alleged improper construction activity at

the house, which Bronson later forwarded to Huckelberry and other county employees asking for investigations. Bronson said it’s normal for her to communicate with residents in her district, particularly if they need help with county issues. “The neighbors were concerned that he (Halili) wasn’t following the rules,” Bronson said. “We merely asked him to play by the rules and he consistently has not done that.” In an April 2010 exchange, Verburg and the Tucson Mountain Association sent county planner Sue Morman, who was the planner for the Halili project, a list of potential violations association members claimed that they saw at the Halili house and requested a stop-work order. Those also included perceived improper dumping of excavation spoil and that a wash on the property had been filled with the material. County staffers investigated, but found no violations. The emails also reveal an incident from April 2010, in which Halili said neighbors verbally assaulted workers at the house and hurled rocks at them. In an April 7, 2010, email to Morman, Halili said the Pima County Sheriff ’s Department had been contacted about the incident and that he told workers to call police if they suspected neighbors were stalking them or trespassing on the property. CONTINUED ON NEXT PAGE

InsideTucsonBusiness.com

NOVEMBER 9, 2012

ECONOMIC DEVELOPMENT CONTINUED FROM 3

berry casts the roadway aspects of the plan as a strategy to retain existing employers such as Raytheon and enable them to expand. â&#x20AC;&#x153;We can protect and help our existing employers and create an overall environment that is attractive to companies desiring to relocate,â&#x20AC;? Huckelberry wrote. In February, the county spent $5.9 million to purchase 382 acres south of the airport to be used as a safety buffer between Raytheon and future development. In the new economic development proposal, Huckelberry is proposing to add more land south of the airport that would be available for commercial development by aerospace and defense industry companies. â&#x20AC;&#x153;Creation of an aerospace oriented business park associated with Tucson International Airport (TIA) must be a high priority in any economic development plan for the future,â&#x20AC;? Huckelberry wrote. He suggests the county purchase as much as 455 acres from the Tucson Air-

port Authority (TAA) for about $8 million, which was the amount the authority spent to buy the properties in 1995 and 2002. Alternatively, Huckelberry said the property could be obtained through a non-specified trade. â&#x20AC;&#x153;However, it is likely most of this property would be acquired in an exchange with TAA for the second runway (which the airport intends to build),â&#x20AC;? Huckelberry wrote. The Tucson Airport Authority takes exception to that point and at this weekâ&#x20AC;&#x2122;s board of directors meeting chairman Tom Zlaket said there is no way the airport would give away the acreage. â&#x20AC;&#x153;First of all, we have a fiduciary responsibility and under no circumstances we will ever give away that 500 acres of land,â&#x20AC;? Zlaket said at Tuesdayâ&#x20AC;&#x2122;s TAA board meeting. â&#x20AC;&#x153;But more importantly we have responsibility to provide an airport that is functional and safe for many years into the future.â&#x20AC;? Beyond that Bonnie Allin, president

and CEO of the Tucson Airport Authority, said the airport has met with stakeholders, including Raytheon, Bombardier and the Arizona Air National Guard and already has plans to add a second main runway within the next 10 years. Those plans donâ&#x20AC;&#x2122;t require the airport to acquire any additional property. Zlaket and other directors at this weekâ&#x20AC;&#x2122;s TAA board meeting indicated that the airport authority is willing to work on solutions that could include leasing the property to Raytheon or selling it at fair market value. In the planning for a potential 2,800acre aerospace and defense business park near Raytheonâ&#x20AC;&#x2122;s plant, the county proposal identifies potential uses for many of the properties around the airport. Preliminary drawings are posing safety concerns by the airport authority over plans to add taxiway development lots underneath the landing and take-off zones to the southeast of the airportâ&#x20AC;&#x2122;s main runways.

Under the bond program, Huckelberry proposes a $4 million contribution to the Arizona-Sonora Desert Museum to help create a new exhibit. Another $4 million is recommended for the Pima Air and Space Museum to create a Cold War display. The plan asks for an investment of $10 million toward a visitor center at Tumamoc Hill. Under the proposal, the the Childrenâ&#x20AC;&#x2122;s Museum Tucson would receive $6 million to build a new facility. The Tucson Museum of Art would receive $5 million to renovate the north wing of the Old Pima County Courthouse building. The project would create a Western art exhibit. The plan also calls for the county to invest in improvements to its technology infrastructure to help accelerate and streamline building permitting and approvals.

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

LEGAL CLAIM CONTINUED FROM 6

In another exchange in February 2011, Verburg again contacted Pima County Development Services with concerns that construction workers had improperly dumped excavation spoil on the property. After county officials informed Verburg that there were no violations, his concerns were forwarded to Bronson. â&#x20AC;&#x153;Why is staff allowing this? Is this normal procedure?â&#x20AC;? Bronson wrote in a Feb. 15, 2011, email to Huckelberry. In response, DeBonis explained that Tucson Mountain Associationâ&#x20AC;&#x2122;s allegation of improper dumping were incorrect. â&#x20AC;&#x153;It is not customary to require materials that will be used at later stages of work to be removed, only to be brought back again,â&#x20AC;? DeBonis wrote. â&#x20AC;&#x153;At this point, the project is not deemed to be in violation of the condition (for construction).â&#x20AC;? Squabbling with TMA members continued throughout the stop-and-start construction process, when in late 2011 Halili, saying he was fed up with residents trespassing on his property, filed for an injunction against Verburg in Pima County Justice Court. The case was ultimately dismissed, with the judge finding no factual or legal basis to issue the injunction. Verburg wrote of the judgeâ&#x20AC;&#x2122;s decision in an email to Bronson, saying: â&#x20AC;&#x153;The case presented by â&#x20AC;Ś Halili had no substance â&#x20AC;&#x201C; they just wanted us to stop sending complaints to the County.â&#x20AC;? In a brief response, Bronson wrote: â&#x20AC;&#x153;Score one for the good guys!â&#x20AC;? Around the same time, Verburg wrote to

Huckelberry and other county officials that he was at the property and saw furniture on the patio and that other neighbors said they had seen a party going on at the house, which had still not been granted a certificate of occupancy. â&#x20AC;&#x153;We are concerned that Mr. Halili is establishing residency before issuance of the final occupancy permit,â&#x20AC;? Verburg wrote. County officials again investigated but no citations were issued. Halili said the constant battles with neighbors and the county and the delays those caused demonstrate a pattern of repeated attempts to stop construction of his house. â&#x20AC;&#x153;I think they thought I was just some foreigner and they could do to me what theyâ&#x20AC;&#x2122;ve probably done to 100 other people,â&#x20AC;? said Halili, who emigrated from Israel 25 years ago. â&#x20AC;&#x153;This is not what a public servant should do â&#x20AC;&#x201C; not to me and not to anybody else.â&#x20AC;? DeBonis, however, said frequent violations at the home site required excessive time and attention of county officials. â&#x20AC;&#x153;This was anything but typical or standard,â&#x20AC;? he said. The county issued the certificate of occupancy earlier this year and Halili and his family have since moved into the house. Halili said he has not gotten a response from the Attorney Generalâ&#x20AC;&#x2122;s office concerning his complaint.

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8 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

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THE

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Whatever youâ&#x20AC;&#x2122;ve told us drives our every move. Therefore, what you want is what we pursue. What you need is what we get. We never forget that we work for you. CORPORATE REAL ESTATE SERVICES 3709 N. Campbell Ave, Suite 201 | Tucson, AZ 85719 | 520.881.8180 | FAX 520.881.5844 Contact us at 1.800.831.4090 or at www.cotlow.com | Dean P. Cotlow Cotlow@cotlow.com

10 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

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After 5 years, Julie Brinks out as GM of Journal Group By David Hatfield Inside Tucson Business After five years and one month, Julie Brinks is out as vice present and general manager running Journal Broadcast Group’s Tucson operations — KGUN 9, KWBA 58/cable 8, Mix-FM KMXZ 94.9-FM, the Truth KQTH 104.1-FM, the Groove KTGV 106.3-FM and ESPN KFFN 1490-AM/104.9-FM. She had been the longest tenured general manager at a commercial TV station in Tucson. For now, the stations will be overseen by Jim Prather, Journal’s executive vice president of television and radio operations, who is headquartered in Las Vegas where he runs the company’s ABC-affiliate TV station. The company says it is looking for Julie Brinks a new vice president and general manager to run the Tucson operations but otherwise offered no explanation for Brinks’ departure. Brinks apparently was working out the terms of her severance and couldn’t be reached for comment. As general managers go, Brinks wasn’t particularly high profile but recently took that up a notch as the luncheon chair of the American Heart Association’s Go Red For Women movement. The luncheon was held Nov. 1, the day before she was shown the door at Journal Broadcast Group. Staffers say that when management announced the change to the staff, the reaction was matter-of-fact and people went on about their jobs. There had been off-and-on rumors for a couple of years about Brinks but at the same time, the company had put her temporarily in charge of its Palm Springs TV station when it lacked a general manager. As for the timing, competitors note that this is when stations typically do their budgets for the upcoming year and that likely had some-

thing to do with it. This has been a relatively good revenue year for Tucson TV stations, though radio stations are still having some issues. With intense competiton from Clear Channel, Cumulus and Lotus, Journal’s radio group was believed to be lagging in getting its share of advertising business, say the competitors. When she arrived in Tucson Oct. 1, 2007, Brinks was originally the vice president and general manager of only KGUN. Four months later she oversaw the combining of the TV station with Journal’s four radio stations. Then six months later, the company acquired the second TV station, KWBA. All are now housed in a single facility, at 7280 E. Rosewood St. near East Speedway and Kolb Road. Before coming to Tucson, Brinks worked for two years at a station in her home town of Traverse City, Mich. She also worked in management positions for companies in several markets including Lansing, Mich.; Peoria, Ill.; Davenport, Iowa; Syracuse, N.Y., and Las Vegas.

Wildcats TV The kickoff for the Nov. 17 University of Arizona Wildcats football game at Utah will be announced Sunday (Nov. 11). The TV networks make their decisions of games based on how well the teams play this weekend. After their horrible showing against UCLA last weekend, the Wildcats will have to put on a heck of a performance against lackluster Colorado to snag a high-profile network and time slot Nov. 17.

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

W FOLLO DER A E L E TH

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InsideTucsonBusiness.com

NOVEMBER 9, 2012

TOURISM TOURISM IN TUCSON

Working on three fronts to market Tucson to the world The Metropolitan Tucson Convention and Visitors Bureau (MTCVB) is the sole organization responsible for marketing Tucson and Southern Arizona as a premier travel and meetings destination to national and international audiences. Our efforts to market the region take many forms: some out front, some behind-the-scenes — all looking forward.

Out front • US Airways Magazine. If you fly US Airways over the holidays you’ll enjoy a 45-page editorial spread on the Tucson region in US Airways Magazine — the result of a successful partnership among MTCVB, our partners in tourism and economic development and the US Airways Magazine team. The magazine will be on board US Airways’ flights in December, reaching more than 3 million of the most affluent and sophisticated travelers nationally and internationally. • Leisure travelers in the United Kingdom. To encourage more visitors from the United Kingdom, MTCVB recently participated in a sales mission reaching more than 300 tour operators and travel agents with information and training on the “Southwest product” including Tucson-area ranches, resorts, outdoor recreation and unique visitor amenities. MTCVB partnered with the Scottsdale Convention and Visitors Bureau, Grand

Canyon, Detours of Arizona and the Boulders Resort to promote the “buy Arizona” message and ultimately reach high-end leisure travelers. • Meeting planners in VICKI DOYLE Washington, D.C. MTCVB partnered with four area resorts on a sales mission to the Washington, D.C., area — home to many large associations and meeting professionals responsible for booking business into numerous cities. The group presented Tucson’s meeting amenities and attributes to more than 150 planners through sales calls and client receptions. The effort generated leads, bookings and room nights from pre-qualified meeting planners and serves to introduce our product to new meeting planners who are considering the Southwest. • Travel-lovers in Canada. Thanks to advance work by MTCVB’s public relations department, Canadian travelers’ enthusiasm for all things Southwest are getting a boost from a unique story that includes Tucson in the November issue of Canadian Geographic Travel Magazine. Canadian Geographic is Canada’s sixth most-read magazine, with a subscription and newsstand circulation of

approximately 200,000 and an estimated 3.3 million readers per issue.

Behind the scenes • Business and tourism development in Mexico. MTCVB is working with the Arizona District Export Council and other key partners to take a delegation of U.S. companies to exhibit at the Nogales Supplier Expo, Nov. 15, hosted by the Maquiladora Association in Nogales, Sonora. MTCVB saw an opportunity to strengthen our community’s business relationships and is taking the initiative to bring together suppliers and buyers from different maquiladoras throughout Mexico. • Preparation for Gem Show 2013. Area businesses will again participate in a “Welcome Program” coordinated by the MTCVB during the Gem, Mineral & Fossil Showcase, Feb. 2-17, 2013. MTCVB works with City of Tucson transportation, police and fire departments to contribute to smooth operations for the 50,000-plus participants of this cornerstone event. • Educating frontline hospitality employees. Each year, MTCVB partners with the Southern Arizona Attractions Alliance for a day of site visits to attractions and visitor venues. The seventh annual Ambassadors Familiarization Tour was Monday (Nov. 5) and drew more than 150 tourism and hospitality industry employees, docents and volunteers (including

colleagues from Phoenix and Sedona). Participants chose one of seven half-day tours and honed their customer service skills during a luncheon presentation, followed by an attractions tradeshow.

Looking ahead • Branding the region for tourism. During the next several months, MTCVB will engage in a destination branding initiative that will define Tucson’s unique tourism attributes and develop new messaging to promote this region to potential visitors. In early 2013, Tucson’s business community and residents will be asked to weigh in on the process. We hope you will participate. • Visitor analysis. MTCVB is in the midst of a visitor analysis, which is aggregating customer data from nearly 20 area hotels and resorts to determine top visitor feeder markets, when customers book, how long they stay and how much they spend. MTCVB will use this data to determine when and where to place future Tucson travel advertising.

Contact Vicki Doyle, vice president of community relations and visitor services at the Metropolitan Tucson Convention and Visitors Bureau, at vdoyle@visitTucson.org. This monthly column is prepared by the MTCVB.

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12 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE MEALS & ENTERTAINMENT

ARTS & CULTURE

New arrivals in for Saturday oyster fest at Kingfisher

Loft Cinema brings film festival experience to Tucson

a bit, have some laughs and share some Kingfisher Bar and Grill is hosting its third annual Oyster Festival from 10 a.m. to great food,â&#x20AC;? said Harvey. â&#x20AC;&#x153;After all, thereâ&#x20AC;&#x2122;s no better way to connect with people than 3 p.m. Saturday (Nov. 10) featuring a dozen over great barbeque and great beer.â&#x20AC;? Tickets varieties of oysters on the half shell from are $50 per person (plus tax and gratuity) regions including the Pacific, Pacific and reservations are required. Northwest, Gulf, the mid- and â&#x20AC;˘ Loews Ventana Canyon, north Atlantic. 7000 N. Resort Drive â&#x20AC;&#x201D; www. Varieties of oysters have been loewshotels.com/en/Ventanaexpanded this year to include Canyon-Resort â&#x20AC;&#x201D; (520) 299-2020 some from the East Coast that are unique. In addition to oysters on the half shell, other specials include Congratulations to Beyond oyster stew, baked oysters and Bread for taking second place in clam chowder. Also, Kingfisher last weekendâ&#x20AC;&#x2122;s World Food will have its daily lunch menu MICHAEL LURIA Championships in Las Vegas. In items available. the inaugural event, Beyond â&#x20AC;˘ Kingfisher Bar and Grill, Breadâ&#x20AC;&#x2122;s Everything Reuben was 2564 E. Grant Road â&#x20AC;&#x201D; www.kingfishertucthe runner-up in the sandwich category of son.com â&#x20AC;&#x201D; (520) 323-7739 the competition. Aside from the accolades, Beyond Bread received $4,000 for the accomplishment. â&#x20AC;˘ Beyond Bread â&#x20AC;&#x201D; www.beyondbread. Dragoon Brewing Company is partnercom â&#x20AC;&#x201D; 3026 N. Campbell Ave. (520) ing with Loews Ventana Canyon for a Beer 322-9965; 6260 E. Speedway in Monterey Garden dinner at 6:30 p.m. Friday (Nov. 16) Village (520) 747-7477; and 421 W. Ina that will feature the breweryâ&#x20AC;&#x2122;s craft beers Road (520) 461-1111. with barbecue from Loews Executive Chef Ken Harvey. Dinner includes four courses of barbeque prepared using fresh herbs Contct Michael Luria at mjluria@ grown on the grounds of the resort and gmail.com. Meals & Entertainment appears paired with Dragoonâ&#x20AC;&#x2122;s signature beers. weekly in Inside Tucson Business. â&#x20AC;&#x153;Guests rarely get to interact with the chef who prepares their food or the vintner or brewmaster who makes their drink, and vice versa, so this is a really fun way to break down that barrier, educate our guests

$4,000 Reuben

Herbs, brews, barbecue

Opera

Not everyone can jet off to Sundance, Cannes or Toronto for a film festival, The Arizona Opera presents a version so the Loft Cinema, 3233 E. Speedof the most famous of love stores, Shakeway, is going to do its part to bring a speareâ&#x20AC;&#x2122;s â&#x20AC;&#x153;RomĂŠo et Julietteâ&#x20AC;? at 7:30 p.m. film festival experience to Tucson. Friday and 2 p.m. Sunday in the Music This year is the third Hall at the Tucson Convention iteration of of the Loftâ&#x20AC;&#x2122;s event Center, 260 S. Church Ave. and includes a variety of If you havenâ&#x20AC;&#x2122;t seen an opera, documentaries, quirky and this is a good one to start with original narrative features because everyone knowns the as well as award winners. story. It will be sung in French The 40-plus films culled with English subtitles. Buy from around the world insingle performance tickets clude â&#x20AC;&#x153;Post Tenebras Lux,â&#x20AC;? online at www.azopera.com. â&#x20AC;&#x153;A Royal Affair,â&#x20AC;? â&#x20AC;&#x153;Gregory Crewdson: Brief EncounHERB STRATFORD ters,â&#x20AC;? â&#x20AC;&#x153;Jobraith A.D.,â&#x20AC;? â&#x20AC;&#x153;Fame Two major releases this High,â&#x20AC;? â&#x20AC;&#x153;Holy Motors,â&#x20AC;? weekend, â&#x20AC;&#x153;The Sessionsâ&#x20AC;? starring â&#x20AC;&#x153;Sister,â&#x20AC;? and â&#x20AC;&#x153;Teddy Bear.â&#x20AC;? Helen Hunt, John Hawkes and William H. The festival, which began ThursMacy about a polio victim who has spent day, runs through next Thursday more than 30 years mostly in an iron lung (Nov. 15). At 5 p.m. today the Loft and wants to experience intimacy, and will debut its new third screen with a â&#x20AC;&#x153;Skyfall,â&#x20AC;? the latest James Bond feature ribbon-cutting and champagne. starring Daniel Craig and Javier Bardem. See the schedule and buy tickContact Herb Stratford at herb@ ets at the festivalâ&#x20AC;&#x2122;s website, http:// ArtsandCultureGuy.com. Stratford teaches loftfilmfest.com/films. Arts Management at the University of Arizona. He appears weekly in Inside Tucson Business. More than 200 artists are opening the studios to the public for the annual Fall Open Studio Tour, which runs from 11 a.m. to 5 p.m. Saturday and Sunday. The event is free. A map and details are online at www.tucsonpimaartscouncil.org/programs/open-studio/ .

More film

Art studio tour

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InsideTucsonBusiness.com

NOVEMBER 9, 2012

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14 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

PROFILE By Alan M. Petrillo Inside Tucson Business

Courtesy Copper State Communications

Copper State Communications grows as one-stop shop Despite the anemic economy, Copper State Communications continues to grow. That probably has to do with the fact that it helps other businesses and organizations become more efficient, productive and improve their bottom lines by intergrating their commu n i c at i o n s technologies. BIZ FACTS Copper State CommuCopper State nications has Communications been in busi1919 S. Country Club Road ness in Tucson since 1982, prowww.copper-state.com viding custom(520) 795-1877 ers with what corporate sales director Fermin Perez calls “a one stop shop Some of Copper State’s Tucson employees. Front row, from left, for all of their telecommunications and in- Colleen Osland, Becki Ahrendt, Carolyn Henderson, Joanna Stidham, Phyllis Walker, Laura Wheeler, Karen Roberts and Gina Eckles. Back formation technology (IT) requirements.” In addition to its Tucson corporate offices, row Marcia Krumwiede, Rene Morales, Janine Pfeifer-Brown, David the company opened a Phoenix office in 1987 Kriegsman, Louis Anderson, Deborah Bayze, Fermin Perez and Ian Miller. and a Flagstaff facility in 2008. Companywide, it has 83 employees, with 34 in Tucson. “In the old days, a business might buy a Video surveilPresident Steve Sutton and vice president phone system from us, computers from anoth- lance services are Roger Bingham are the company’s founders. er provider, a server from a third party and In- another option Perez said Copper State Communica- ternet services from someone else,” Perez said. offered by Copper tions sells and services telephone equip“But technology is converging. Phones State Communiment from Avaya, ShoreTel, Mitel and are now computers and computers are cations. Copper State Toshiba, and has business partnerships phones. Companies are looking for someone For businesses technician John with CenturyLink, TW Telecom, Integra, like Copper State Communications to help that are required to Ahrendt routes Paetec and more than 60 other telecommu- them with the complexity of converting to a track assets and and terminates nications providers around the country. simple, integrated platform,” he added. monitor their fa- a Cat6 cable to That gives Copper State Communications Copper State Communications has certi- cilities, Copper a data rack for a the ability “to assist businesses with selecting fied network engineers who install network- State Communica- customer. the most appropriate, cost effective services ing systems and equipment for customers, tions offers options for their phone and Internet needs.” and also provide training where needed. including analog and DVR-based systems, naPerez pointed out that as technology changes, Perez noted that the company also is part tive IP (Internet protocol) camera solutions, the communications business also is affected. of the Apple Certified Network. offsite monitoring and response services. Copper State Communications customers run the gamut of business and group types, including construction, manufacturing, engineering and mining, as well as schools, hospitals and medical facilities. Perez said the company recently completed a large data infrastructure upgrade at Copper Creek Elementary School in the Amphitheater Public Schools District that now allows for high-speed Internet and video connectivity in each classroom. Copper State Communications also installed all the fiber optic cables for the new scoreboard at the University of Arizona’s football stadium. Liz Hershberger, facilities coordinator for M3 Engineering and Technology, said her firm uses Copper State Communications for all of its networking and communi{ Teaching by example. That’s what we’re all about too. } cation needs. With more plans and dentists to choose from, at prices you can afford, we are “Three years ago, we moved 467 people to a new building on Sunset Road,” Hershberger proud to have insured healthy, happy smiles in Arizona for the past 40 years! said. “Copper State’s people were here workEvery Smile Matters. Get Delta Dental. MySmileAZ.com ing day and night over the weekend so there were no lost work hours or any down time for

us. We’ve also used them to install communication and networking systems when we added a building to our Chandler facility.” As for the future, Perez sees Copper State Communications becoming more of an integrated solution provider and focusing more on data, cloud-based services and VoIP (Voice over Internet Protocol). “Technology changes so fast, it’s difficult to predict where we will be,” Perez observed. “We think we’ll be on the bleeding edge of technology, helping businesses communicate with their databases and pushing things into cloud technology.” Cloud technology has been around for the past 15 to 20 years to sell networking, he said. “In the 1990s, we described it as a cloud of wires, but now instead of connecting point A to point B, we’ve expanded to a cloud of servers, switches and software services,” Perez said. “Many people use cloud based services and don’t even know it, like Google email, which is a cloud-based service that you can get to anywhere with an internet connection and need only simple identification. We’re going to see more cloud-based services in the future,” he said.

InsideTucsonBusiness.com

NOVEMBER 9, 2012

SMALL BUSINESS

GOOD BUSINESS SMALL BUSINESS

PR CORNER

Make your money count more, Content versus channel — getting response, not followers shop local this holiday season It is impossible to read or hear about business marketing and communication trends without being buried by a plethora of statistics on the power of the social medium. All of them are true and all are overwhelming. According to some reports, those under the age of 30 now represent 50 percent of the people in the world. One in eight new couples has reportedly met through social communication, as opposed to old-fashioned social interaction. Even Baby Boomers, for example, are growing social media advocates. This is in order that we might better communicate interpersonally in any fashion possible with grandchildren! This young demographic group, the Millennials, has been raised on social media communication, just as I was raised watching television, my father was raised listening to the radio and my grandfather reading the newspaper. It has proven to be much more than just a teenage fad and its WOM (word of mouth) direct appeal and scope far surpasses any communication channel we have yet seen. As impressive as this exploding social media channel is, however, “content is still king”! As a matter of fact, content may be more important than ever through this blossoming channel. A business certainly would and should want Twitter followers, YouTube viewers, webinar attendees and Blog readers. But as these followers have short attention and retention spans, an integrated understanding of “moving the needle” with a strategic flow of message content remains essential to business return on investment. Your company doesn’t just “need” to be involved in social media any more than it “needed” to publish a newsletter to secure and promote business in the 1980s. That was responsiveness to the fad of desktop publishing, which many are inclined to associate now with social media. Social media, however, has proven to be much more. The social media channel is something to be respected, attended to, utilized and managed for business, but not at the expense of conventional media. Channels must be professionally

calculated in order to sell products in both the businessto-consumer (B-to C) or business-to business (B-to-B) environment, not just to create followers. A sole dependency on social DONALD A. MOUNCE media communication may give you a greater sense of message control, but it does have one substantial drawback. Conventional media message vetting has and still does greatly benefit business by adding third-party value that is lacking in direct social media. The weight of credibility offered through gatekeepers in the news media, such as TV, radio, trade magazine, and newspaper reporters and publishers, cannot be ignored. If you have any doubts, ask yourself how and why these conventional media members stay in business; their numbers may be dwindling as they adjust and consolidate their own social presence, but they have not died for a reason...people still follow them, too! Professional understanding and counsel on fresh messaging content, information timing and the strategic incorporation of communication with business goals are imperative to the bottom line of getting results. Compelling content remains the best way to accommodate for any perceived credibility imbalance. That “content is still king” is a key matter your business needs to remember. And that is why professional communication counsel remains a trusted business partner in helping you achieve success through the navigation of all channels, including social media.

Contact Donald A. Mounce, APR, an award-winning public relations and marketing communications consultant and college and university instructor, dmounce1@cox.net, or (520) 625-5141. Mounce is professional accreditation chair for the Public Relations Society of America, Southern Arizona chapter, whose members write this monthly column.

Finally, November has arrived and with it the anticipation of increased sales for local merchants. I can hear the collective, “Hurrahs!” Perhaps we welcome November because it finally brings to an end this year’s brutal election season and the joy of finally having it in the rear-view mirror. The level of uncertainly has decreased. We may or may not be happy with the outcomes of the election, but at least moving forward we know what we have, what to expect and what we have to work with. This renewed sense of certainty will boost the level of activity in our economy, new investments in businesses and job creation. That’s good news for us all. Too much money has been sitting on the sidelines for too long, and we need to get that money back where it belongs — in the playing field we call our economy. If gasoline fuels the engines that move our vehicles forward, then cash is the fuel that powers our economic engine that moves our economy forward. The more cash that flows through our economic engine, the faster our economy moves forward. Where we spend our money is critically important. We need to spend more locally. I have friends who live and own businesses in on the Arizona side of Nogales and they talk about how local businesses struggle perpetually. Nogales is no charity case — there is a lot of wealth in that community and a constant flow of new money from outside sources generated by international trade and commerce. Unfortunately, that new money does not exchange hands enough times locally as Nogales residents cross into Mexico to dine and get their dry cleaning done, and then travel to Tucson for shopping and entertainment. Nogales is missing out on the multiplier effect. The multiplier effect is caused when money recirculates in a local economy, and its economic impact multiplies each time that money is exchanged. It’s a ripple effect, and studies have shown that for every $100

spent in a local economy, about $45 is reinvested locally, further increasing economic activity and new business opportunities. The end results are big payoffs to JERRY BUSTAMANTE local businesses, our local economy and our community as a whole. There are a number of cities and towns across Arizona that have developed “shop local campaigns” to increase awareness and remind residents to shop local. There is also Local First Arizona, a non-profit organization working to strengthen our state’s economy by supporting and celebrating the contributions of local businesses across the state. One of their latest economic development projects that I just love is their Small Wonders Map. It’s a collection of 60 locally owned businesses and events found in and between the University of Arizona Main Gate area and downtown Tucson. It’s a great piece, and I invite you to pick up a free copy of the Small Wonders Map at the offices of the Arizona Small Business Association in Crossroads Festival (see the address at the end of this column). . I encourage you to join me this holiday season and put the multiplier effect to work here in Tucson and Southern Arizona by shopping locally. We have many locally owned businesses to choose from who are vested in our community and collectively leading the charge in our state’s recovery. They deserve our support and are a pleasure to do business with.

Jerry Bustamante is senior vice president of public policy and oversees the Southern Arizona office of the Arizona Small Business Association, 4811 E. Grant Road, Suite 262, in Crossroads Festival, phone (520) 327-0222.

16 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

PEOPLE IN ACTION NEW HIRES Northwest Allied Physicians at Oro Valley Hospital has hired gastroenterologist Dr. Paul Butler. With more than 27 years experience, Butler provides care to patients with diseases and disorders of the GI tract and digestive system. Butler holds a medical degree from the Ohio State University and completed his residency and fellowship at Ohio State University Hospitals in Columbus, Ohio. Loose, Brown & Associates, P.C. has hired

attorney Frank A. Scerbo. Scerbo attended St. Peter’s University, where he received a marketing management degree. Scerbo earned a law degree from the University of Detroit School of Law School. Scerbo is a member of the state bars of Michigan and Arizona. He practices in the areas of business and corporate law, contracts, financial transactions, real estate and employment law. Simpleview has named Lisa Love as its creative director. In her role, Love will establish website design goals for clients, and work closely with a

in Athens, Ohio. ELECTIONS

PAUL BUTLER

development team to create rich, interactive online applications. Love’s work has been profiled by publications in the advertising industry including Graphis and HOW. She has also received numerous international, national and regional design and advertising awards.

LISA LOVE

ARTHUR SANDERS

{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.

Prior to joining Simpleview, Love served as the CEO and creative director for L3 Creative – a strategic branding, advertising and graphic design agency she founded in 1991. Love earned a bachelor’s degree in graphic design from the Ohio University

INSIDE TUCSON BUSINESS

Is outdated telecommunications technology costing you too much money?

9TH ANNUAL

WOMEN OF

INFLUENCE

Please join us as we recognize this year’s recipients. Friday, November 16th

W2i

:20(1 2) ,1)/8(1&( 2012

Arthur B. Sanders, MD, MHA, professor with the Department of Emergency Medicine at the University of Arizona College of Medicine – Tucson, has been elected to the Institute of Medicine of the National Academies. Sanders also is a member of the Arizona Emergency Medicine Research Center and the University of Arizona Sarver Heart Center. Election to the IOM is considered one of the highest honors in the fields of health and medicine and recognizes

individuals who have demonstrated outstanding professional achievement and commitment to service. Sanders earned his medical degree from Cornell University and completed his residency in medicine at the UA College of Medicine. He joined the UA faculty in 1977 and worked in the emergency department of University Hospital, now called The University of Arizona Medical Center – University Campus.

Tucson Marriott University Park 880 E. 2nd Street, Tucson, AZ 7:00am Registration 7:30am – 9:30am Breakfast and Presentation

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$50 per seat or a table of 10 for $500 RSVP by noon on November 12, 2012 RSVP: www.insidetucsonbusiness.com/womenofinfluence For more information contact Jill A’Hearn at 295-4236 Sponsored by:

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InsideTucsonBusiness.com

NOVEMBER 9, 2012

BRIEFS GET ON THE LIST

HOSPITALITY & LEISURE

Next up: Hotels, resorts and guest ranches; Travel agencies

Casino del Sol resort gets AAA four diamonds

Inside Tucson Business is in the final stages of gathering data for the 2013 edition of the Book of Lists. Categories to be published in upcoming weekly issues of Inside Tucson Business are: • 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 • Dec. 7: Art galleries, Sign companies • Dec. 14: Private golf course, Public golf courses If your business is in one of these categories, please update your profile now. If the List for your business has already been published in a weekly edition of Inside Tucson Business but there have been changes since then, there is still time to make those changes before the Book of Lists is published. To make any changes to a List, 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. The 2013 edition will be published in January. To advertise your business, call (520) 294-1200.

The Pascua Yaqui Tribe’s Casino Del Sol Resort Spa and Conference has joined AAA’s list of four-diamond resorts in the Tucson region. When the resort opened a year ago, on Nov. 11, 2011, — 11/11/11 — officials said it was a goal of theirs to be a top-tier resort and it has succeeded with AAA in just the first year. Casino Del Sol joins other resorts that have been on the list for several years. Loews Ventana Canyon has been a fourdiamond resort for 28 years, the Lodge at Ventana Canyon for 17 years, Westin La Paloma Resort and Spa for 11 years, Arizona Inn for nine years, and both the Omni Tucson National and Wesward Look Wyndham Grand Resort and Spa have been on the list for four years. Tucson restaraunts receiving four diamonds for 2013 are Anthony’s In the Catalinas, Gold at Westward Look Wyndham Grand, Main Dining Room at the Arizona Inn, Primo at JW Marriott Starr Pass Resort and the Grill at Hacienda Del Sol.

LEGAL

Tucsonans plead guilty in embezzlement case Tucsonans Mark Ophelia Islas and Mayra Jeannette Angulo have pleaded guilty in U.S. District Court in Tucson in connection with charges of mail fraud and money laundering.

Angulo pleaded guilty to mail fraud and engaging in an illegal monetary transaction. She is scheduled to be sentenced Jan. 7, 2013. Islas pleaded guilty to the same charges earlier this year. He is scheduled to be sentenced Nov. 26. The two were implicated in a scheme to defraud Woodbury Financial Services, a subsidiary of Hartford Financial Services. Islas and Angulo had worked for Woodbury as agents. Beginning in 2002, Angulo and Islas embezzled insurance premium payments from clients, the government charged. They later transferred the embezzled money to personal bank accounts, using the monies for their personal benefit.

Lewis and Roca has 10 attorneys honored Based on high standards of ethics and professional ability, 10 attorneys with the law firm of Lewis and Roca have been named as 2012 Arizona’s Top Rated Lawyers. The ratings are from MartindaleHubbell, a national information services company that provides reviews of lawyers and law firms to consumers and professionals. In the specialty of real estate, the honorees were Roy Kyle, Linda McNulty, S. L. Schorr, Lewis Schorr and Andrew Schorr. Awardees in other disciplines were: Rob Charles (bankruptcy); John Hinderaker (real estate litigation); John Iurino (civil litigation); Michael McNulty (natural resources); and Doug Metcalf (tax). Lewis and Roca, 1 S. Church Ave., was founded over 60 years ago and has offic-

es in Tucson, Phoenix, Reno, Las Vegas, Albuquerque and Mountain View, Calif.

KUDOS

Green kudos to Levitz, St. Michael’s School Sam Levitz Furniture and St. Michael’s Parish Day School have been honored for their environmental efforts in Mrs. Green’s World’s third annual Arizona’s Greenest Workplace Challenge. Sam Levitz Furniture, headquartered at 3430 E. 36th Street, won the People’s Choice Award. The retailer is on track to reduce its landfill waste by 16 percent this year and to recycle almost one million pounds of cardboard. The company also updated its truck fleet to lower carbon emissions and reduce fuel usage by almost 3,000 gallons. St. Michael’s School, 602 N. Wilmot Road, was named Arizona’s Greenest Workplace. The school’s green initiatives focus on water, electricity and paper. The school harvests over 50,000 gallons of rain water annually for its landscaping and recently installed 800 solar panels. Teachers use iPads to access educational materials electronically instead of on paper. Mrs. Green’s World features founder Gina Murphy-Darling as Mrs. Green. She advocates for environmental sustainability and green initiatives and also hosts a weekly Internet show.

ELECTION RESULTS CONTINUED FROM 5

$68,079 to an amount equal to the combined earnings of 50 Arizona workers — estimated for 2013 at $2.4 million. It would have applied to property purchased during or after 2013. Supporters said the change would create an incentive for businesses to invest in equipment and add jobs. There was no formal opposition to the measure, something that Farrell Quinlan, Arizona director of the National Federation of Independent Business, said worked against the ballot measure. People thought it “was a no-brainer”, Quinlan said. He said only about $66,000 was raised to support the proposition and it would have taken about ten times that amount to reach voters. It was hard to win without a well-funded “yes” campaign, Quinlan said. Confusion, he said, was “our biggest enemy.”

119 - State land exchanges to keep military approved By Brittany Smith Cronkite News Service Proposition 199 to allow swapping state trust land for federal land to preserve military bases was approved by 62 percent of voters. The state Constitution requires that millions of acres of trust land managed by the state be leased or sold to benefit education and other causes. That prevents the federal government from trading land elsewhere for state land that guards against encroachment around bases. The measure was supported by a broad coalition of education leaders, state officials, conservation groups, military leaders and ranchers.

204 - Permanent 1% percent sales tax rejected By Danielle Verbrigghe Cronkite News Services By a margin of 65 percent to 35 percent, voters decided to let a temporary 1 percent

sales tax expire as planned on May 31, rolling the state sales tax back to 5.6 percent. Proposition 204 would have raised an estimated $1 billion in the first year, most of which would have gone toward various education funds. About $100 million was earmarked for transportation projects each year. Opponents, including State Treasurer Doug Ducey, criticized the measure as bad policy and said it would restrict the Legislature’s ability to budget effectively. “I traveled around the state and it was obvious to me that Arizonans think this is a bad idea,” Ducey said. Supporters of the initiative, including Ann-Eve Pedersen, chairwoman of the Yes On 204 campaign, said Arizona needs a permanent revenue source for education the Legislature can’t touch. Pedersen said that while voters support education, many voted against Proposition 204 because they were misled by misinformation spread by the opposing campaign. Pedersen said she would continue her efforts by putting pressure on the Legislature

and possibly trying to get another measure on the ballot in the future. “Some people assume we feel defeated, but the opposite is true,” she said. “We feel empowered and more motivated than ever to fight for our children.”

Tucson city proposition

Road repairs in jeopardy Inside Tucson Business Compared to other recent requests for money, City of Tucson officials have to take some satisfaction that Proposition 409 didn’t get shot down by a huge margin. It wasn’t winning but the margin was just 0.7 percent, less than 800 votes with thousands of provisional ballots remaining to be counted. If the final outcome stands, city government faces a major financial challenge of road maintenance and repair without a long-term dedicated funding source. The $100 million bond proposition would have funded a five-year program to resurface over 200 miles of crumbling and pot-holed streets in the city.

18 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Get your children involved in saving for their education Most articles about college planning focus on advice for parents or other adults who expect to pay the cost for a younger person’s education. But what about the beneficiary who plans to attend college? Although most young people don’t have the assets for college savings their elders do, being part of the planning process can be educational, offering financial lessons for the future. Children can earn money, learn about sources of financial aid, research potential colleges and take other steps that may relieve their parents of some of the responsibility of college planning.

Starting early According to the U.S. Department of Education, the best time to introduce children to college planning is when they are in the sixth, seventh or eighth grade. You may want to initiate discussions about college and explain the importance of developing good study habits and getting involved in extracurricular activities — to instill the idea that your family supports higher education. You may also want to encourage your children to begin thinking about the career they would like to pursue, which is likely to influence their choice of college, as well as to establish a savings account that could be earmarked for education expenses.

Budgeting basics You can help your child plan for college by assisting him or her with developing a realistic budget. Develop a basic budget illustrating the various costs a student is likely to pay in tuition, fees, books, supplies and room and board.

Higher gear in high school Many high school students are mature enough to plan for college at a deeper level. Appropriate planning may include the following: • Matching personal aptitudes with vocational interests. High school guidance counselors can help students learn about careers that utilize skills in math, science, language arts, social studies and other areas of interest, as well as postsecondary courses of study in these areas. • Maintaining high academic standards. Colleges prefer applicants that have exceeded basic requirements and taken more challenging courses in language arts, math, science, social studies, foreign languages, and other areas. Many high schools permit qualified students to earn college credits by taking Advanced Placement courses. Excelling in these classes may demonstrate motivation and reduce the number of academic requirements after a student enters college.

• Learning about college costs. Students may gain a deeper appreciation of their family’s financial sacrifices when they realize how expensive college is. They can learn about college costs W. DAVID FAY from the College Board at www.collegeboard.com, the U.S. Department of Education at www.ed.gov, and high school guidance offices. • Researching scholarships. There are numerous websites with information about sources of financial aid. For example, www. fastweb.com and www.finaid.org contain search engines with data about thousands of scholarships with varying eligibility criteria.

Points to remember 1. Although young people may not have access to the same level of assets that their parents do, there are many ways they can help their families plan for college — maintain good study habits, take college preparatory classes, and set aside money from part-time jobs for college expenses. 2. Many experts recommend introducing children to college planning when they are in the sixth, seventh, or eighth grade, depending on the child’s maturity level and interests. Children at this age can be encouraged to maintain good grades, enhance computer skills, and think about potential careers. 3. High school students can explore college planning at a deeper level, including using the Internet to research college costs and sources of financial aid. Websites such as www.ed.gov, www.collegeboard. com, www.fastweb.com, www.finaid.org, and www.fafsa.ed.gov provide considerable information in these areas. 4. Since attending and financing college requires planning and attention to detail, high school students can help their parents develop a plan to make sure things get done on time. 5. Parents and students can work together to develop a budget for college expenses. Average costs for various types of two-year and four-year colleges are available at www.collegeboard.com.

Contact W. David Fay, a second vice president in wealth management and financial advisor with Morgan Stanley Smith Barney, at http://fa.smithbarney.com/ thefaymillergroup or (502) 745-7069.

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

Company Name

Symbol

Nov. 7

Oct. 31 Change

52-Week 52-Week Low High

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

AERG.OB CEXIQ.OB PRSC UNS

0.03 0.18 9.92 41.35

0.03 0.22 10.20 42.64

0.00 -0.04 -0.28 -1.29

0.03 0.01 9.56 34.62

0.14 1.00 15.94 43.12

8.48 0.37 2.70 9.23 58.97 7.83 85.45 15.47 57.99 3.45 17.53 56.05 36.58 30.39 35.80 16.36 97.30 37.88 46.69 9.94 80.81 60.16 21.42 39.29 29.52 61.99 62.12 191.16 34.26 60.53 5.57 40.48 33.75 16.41 54.32 24.64 1.49 39.05 32.77 41.20 56.69 40.45 36.01 37.42 47.01 66.70 22.80 17.76 55.47 48.15 16.30 43.35 64.16 11.21 9.01 41.85 37.26 62.79 16.26 29.29 44.91 20.53 122.14 19.89 12.59 32.39 73.11 33.44 32.91 10.17 20.41

8.57 0.38 2.73 9.32 59.12 8.30 86.35 15.21 58.65 3.80 18.02 37.39 37.53 27.42 30.45 16.81 98.43 38.38 46.40 9.63 77.00 58.22 20.96 38.88 30.21 61.38 61.24 194.53 34.60 59.43 5.61 41.68 37.20 15.98 53.28 25.22 1.48 37.47 32.38 42.28 57.00 38.07 36.48 36.98 47.80 68.69 24.01 17.34 56.56 48.02 16.31 43.85 62.67 10.94 8.82 43.47 34.25 63.75 16.84 28.09 43.47 19.21 123.03 20.08 12.18 33.21 75.02 35.23 33.69 10.26 21.48

-0.09 -0.01 -0.03 -0.09 -0.15 -0.47 -0.90 0.26 -0.66 -0.35 -0.49 18.66 -0.95 2.97 5.35 -0.45 -1.13 -0.50 0.29 0.31 3.81 1.94 0.46 0.41 -0.69 0.61 0.88 -3.37 -0.34 1.10 -0.04 -1.20 -3.45 0.43 1.04 -0.58 0.01 1.58 0.39 -1.08 -0.31 2.38 -0.47 0.44 -0.79 -1.99 -1.21 0.42 -1.09 0.13 -0.01 -0.50 1.49 0.27 0.19 -1.62 3.01 -0.96 -0.58 1.20 1.44 1.32 -0.89 -0.19 0.41 -0.82 -1.91 -1.79 -0.78 -0.09 -1.07

7.97 0.20 1.48 4.92 50.95 5.30 72.60 14.38 49.37 3.30 14.18 23.30 20.90 15.97 22.19 11.40 78.81 34.14 35.57 7.08 42.54 50.14 10.75 31.08 21.38 36.41 48.82 177.06 27.10 48.91 3.72 28.28 26.10 6.17 42.72 20.98 0.49 16.31 20.78 35.59 45.62 29.43 27.53 17.75 34.87 52.69 19.06 5.08 42.00 36.50 14.73 31.61 28.89 6.25 7.37 37.05 23.21 47.25 14.04 26.06 32.09 15.51 95.15 18.46 3.96 23.72 56.26 28.53 23.19 5.46 14.52

10.92 2.34 3.97 10.10 60.99 9.75 90.93 28.53 60.00 4.93 21.16 38.72 37.96 32.70 37.80 17.42 104.43 43.43 49.23 12.25 82.99 67.20 22.79 48.96 30.97 63.20 63.48 211.79 37.70 62.33 5.85 46.49 37.54 17.30 56.66 25.44 1.81 39.33 33.63 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 38.00 65.80 18.23 34.24 46.59 25.84 129.27 58.29 14.51 35.46 77.60 37.35 36.60 10.99 22.81

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

InsideTucsonBusiness.com

NOVEMBER 9, 2012

INSIDE REAL ESTATE & CONSTRUCTION

Residential foreclosures could exceed 2011 totals By Roger Yohem Inside Tucson Business Based on the latest housing statistics, hundreds of struggling homeowners still have a long way to go to try to fix their distressed mortgages. During October, foreclosure notices remained on pace to exceed last year’s total. With two months of the year remaining, 178 more notices have been filed in 2012 compared with the same 10-month period a year ago. This year’s 8,221 trustee’s sale notices are up 2 percent over the 8,043 notices through October 2011 (see table). During 2012, monthly notices peaked at 984 in May and have dropped somewhat erratically since. The comparable monthly averages now stand at 804 notices in 2011 and 822 in 2012. If that rate continues, about 400 more homeowners will receive foreclosure notices this year compared to last year. Trustee’s notices are the first step in the foreclosure process. The data is from the Pima County Recorder’s Office. Foreclosure sales increased significantly last month but are still far behind last year’s pace. The 627 distressed sales in October were 208 more than in September. Year-to-date, however, the 4,971 sales are 1,036 behind last year’s pace of 6,007 closings. From January through October 2011, an average 601 foreclosures were sold monthly. The comparable 2012 average is now 497 per month, a 17 percent slow down in sales.

Long Realty brand In a move to establish a powerful new brand, holding company giant Berkshire Hathaway Inc. is combining its real estate

THE PULSE:

TUCSON REAL ESTATE

10/29/2012 10/22/2012

Median Price Active Listings New Listings Pending Sales Homes Closed

$155,000 4,724 436 315 277

Source: Long Realty Research Center

$144,500 4,640 410 354 194

Notices of Trustees Sales Pima County Recorder Foreclosure January February March April May June July August September October November

2007 346 276 305 300 396 377 419 503 394 483 540

December Total Monthly avg.

475 4,814 401

30 YEAR 15 YEAR 3/1 ARM

Current

2009 882 1,016 1,154 1,093 991 1,002 1,063 1,130 1,008 948 859

2010 863 982 1,089 985 890 862 1,111 1,067 1,090 1,019 829

2011 975 762 948 721 748 693 666 917 797 816 754

923 1,038 8,956 12,184 746 1,015

876 11,663 972

636 9,433 786

2012 705 918 904 910 984 946 797 794 625 638

8,221 822

Pima County Recorder’s Office data

operations across the U.S. The move includes Long Realty, headquartered at 900 E. River Road, as an affiliate of Berkshire Hathaway. “Our logo tagline will change and we will incorporate that over time. It will be along the lines of Long Realty Company, a Berkshire Hathaway affiliate,” said Rosey Koberlein, president and CEO of Long Companies. “Where appropriate, the logo will change. The value of the Berkshire Hathaway name is huge, we are very proud to be a part of this change.” Berkshire Hathaway is run by famed business investor Warren Buffet, the company’s chairman and CEO. HomeServices of America, also a Berkshire Hathaway company, has acquired a majority interest in the Prudential Real Estate and Real Living brands from a Canadian firm. In 2013, the Prudential and Real Living operations will be rolled into a new franchise brand to be called Berkshire Hathaway HomeServices. In 1999, Long Realty was acquired by HomeServices of America, the nation’s second-largest residential real estate brokerage firm. “Immediately, we grow by leaps and bounds by being part of a national network. To consumers, listings in Tucson will have

WEEKLY MORTGAGE RATES Program

2008 699 598 661 700 720 742 721 814 782 921 675

Last Week

11/6/2012

One 12 Month 12 Month Year Ago High Low

3.50% 3.75%APR 3.63% 3.875%APR 4.95% 3.00% 3.25%APR 2.88% 3.125% APR 4.22% 2.63% 2.875%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%

greater exposure across the country. Likewise, someone from Michigan thinking of moving to the Southwest will have greater exposure to our market and assurance through the strength of the new network,” Koberlein said. On several occasions, Koberlein has met and dined with the legendary Buffett, 82, during company events in Omaha, Neb. She described him as “very down to earth. With all his knowledge, he is absolutely fascinating.”

Multi-family investments Integra Group Real Estate, 501 W. Grant Road, has launched a program to provide education and opportunities for investors in multi-family properties. Their MultiFamily Home Investors Initiative expands the company’s traditional services and provides a high level of education for potential investors. The initiative offers workshops, one-onone consulting and an educational newsletter. Integra Group specializes in the property management and marketing and sale of bankowned and other distressed properties. For details, call (520) 308-6916.

Sales and leases • LM Investment Group purchased a 10,584-square-foot building at 1201-1215 E. Broadway for $520,000 from Target Commercial Interiors Inc., represented by Nancy McClure, CBRE, and Mark McCary, Target, Minneapolis, Minn. Target Commercial Interiors has consolidated its office, showroom and warehouse operations to 1665 E. 22nd St. The buyer will convert the Broadway property into offices and TV studios for its Azteca America station, KUDF 14. The TV station is currently located at 245 S. Plumer

Ave. The buyer was represented by Jim Marian, Chapman Lindsay Commercial Real Estate Services. • DCTN3 360 Sahuarita Az LLC purchased a 33,000 square-foot pad in Madera Marketplace, at the northeast corner of Interstate 19 and Nogales Highway, Sahuarita, for $345,000. Seller Evergreen-Interstate 19 & Nogales LLC, was represented by Brenna Lacey, Volk Company. The buyer, represented by Pat Sauer, Velocity Retail Group, plans to build a Mattress Firm retail store on the site. • CP-East Valencia LLC purchased 4.52 acres of land at 2310 E. Valencia Road for $345,000 from Sterling Savings Bank, represented by Rick Volk, Volk Company Commercial Real Estate. • TMC Holdings purchased 1,500 square feet at 5200 E. Farness Drive, Suite 100, for $105,000 from Paul and Maureen Lichtenstein, represented by Andrew Sternberg, Oxford Realty Advisors. The buyer was represented by Rick Kleiner and Tom Knox, Picor Commercial Real Estate Services. • Schletter Inc. leased 67,500 square feet at 3761 E. Farnum Place from L.B.S. Farnum Place LLC. The transaction was handled by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services. • Cactus Portable Storage LLC leased 45,908 square feet at 6161 S. Palo Verde Road from Cobalt Industrial REIT II, represented by Rob Glaser and Brandon Rodgers, Picor Commercial Real Estate Services. • Heating and Cooling Supply leased 28,500 square feet at 2301 S. Friebus from Oak Properties, represented by Rob Glaser with Picor. Robert Delaney with CBRE and Robert Bode with Mark V Commercial represented the tenant. • Long O. Lin leased a 10,808 squarefoot building at 715 E. Wetmore Road, a former Golden Corral restaurant, from Koi Enterprises Inc. The tenant was represented by Rick Borane of Volk Company Commercial Real Estate. • Eden Customs LLC leased 8,000 square feet at 1700 W. Grant Road from Albert E. & Debbie L. Farner Trust, represented by Rob Glaser with Picor. The tenant was represented by William Mordka of Harvey Mordka Realty. • FreedomSmokeUSA leased 6,768 square feet at 3805 W. River Road, Suites 101 and 151, from Orange Grove Center LLC, represented by Debbie Heslop of Volk Company Commercial Real Estate. • Conn Appliances leased 6,000 square feet at 750 E. Ohio, Suites 3 and 4 from Ohio Street Building No.2 Ltd. LLLP, represented by Rob Glaser of Picor. The tenant was represented by Robert Delaney with CBRE.

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

20 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Elections are over, all businesses need help Inside Tucson Business is a publication about business for businesses. But business isn’t monolithic and business leaders’ views don’t all go down the same road either. The point hit home with me at the annual luncheon for Tucson Regional Economic Opportunities (TREO) Nov. 1. The economic development organization has taken its share of PR hits this year. Its critics say it spends DAVID HATFIELD lots of money but doesn’t give us much in return. Under its new funding formula relying more on private investment, it’s hard to say what its future will be. One not-sogood sign is that this year’s luncheon keynote speaker was about the least relevant in the seven years TREO has existed. Perhaps that has to do with the fact that last year’s speaker, Arizona State University President Michael Crow, may have been the most relevant — and was a heck of a speaker to boot. So as I looked around the room at Casino Del Sol, I realized that despite the bad raps, TREO still can get together a few hundred of some of the most influential people in the region. They are people who literally hold the purse strings of this region’s economy, representing Raytheon Missile Systems, Providence Service Corp., Roche Group’s Ventana Medical Systems, Sanofi, Accler8, Arizona Canning Co. and others. Without these companies, Tucson wouldn’t have many dollars coming in from outside the region. They are part of the foundation of our region’s economy. And they are companies that could be located anywhere else. A lot of other businesses depend on them. Dillard’s or Macy’s might not be here without them. There would be fewer dollars to spread around to our unique mom and pop businesses, too. If you get right down to it, UNS Energy and Tucson Electric Power or Cox Communications would be shadows of what they are without these purse-string companies. Tucson has had a rough go of it during the recession. And the future doesn’t look particularly bright. On the same day TREO was having its luncheon, the Arizona Department of Administration released a forecast showing that statewide Arizona is expected to add 112,200 jobs this year and next, but only about 5 percent of those jobs, 5,800, will be in the Tucson region. Looking at it another way, Tucson’s rate of projected job growth is less than half than anywhere else in the state. The statewide forecast for job growth is 2.1 percent this year and 2.5 percent in 2013. Job growth in the Phoenix area will go up 2.6 percent this year and 2.8 percent next year. The rest of the state, not including Tucson or Phoenix, will see job growth of 1.6 percent this year and 2.3 percent next year. Tucson’s anemic forecast is for 0.6 percent job growth this year and 1.0 percent next year. A lot of different types of businesses contribute to Tucson’s economy. Tourism and retail are a couple that are outside of TREO’s domain. Small businesses have their own issues. Meanwhile other significant employers, such as IBM for reasons I’ve never understood, stay outside of TREO. Now that this year’s elections are over, maybe we can put at least some of the sniping behind us and agree that all kinds of businesses in this region could use some help.

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

EDITORIAL

Disarray in the Republican party When he switched political parties in 1962, Ronald Reagan famously said, “I didn’t leave the Democratic Party. The party left me.” You’d have to wonder what Reagan would think and do after the election we saw this week, especially in Arizona and here in Pima County. Would he even recognize what has happened to the party that claims to idolize him so much? Obviously, Reagan nor many other Republicans would ever see themselves switching to Democrats. The thing to do these days is to become an independent. The two major political parties have become less and less representative of growing numbers of people. Of Arizona’s more than 3.1 million registered voters in Tuesday’s election, 36 percent were Republican, 33 percent independent, 31 percent Democrats. (Fewer than 1 percent were registered in other parties.) Now, consider what happened, politically, to Republicans in this week’s election: • It starts right at the top of the ticket. Arizona voters delivered the state’s 11 electoral votes to Mitt Romney, but it didn’t matter. Nationally, the race wasn’t close. Barack Obama had his re-election sewed up shortly after 9 p.m., only about two hours after Arizona polls had closed. Republican party leaders’ focus on delivering votes for the top of the ticket produced a mixed bag further down the Arizona ballot. • Jeff Flake, as expected, will keep both of Arizona’s U.S. Senate seats on the Republican side of the aisle. But Democrats held on to control of the body. • The three Congressional districts that come into Southern Arizona show textbook examples of Republicans’ botched campaigns. Jonathan Paton had the best organization to overcome an initial financial shortfall and ultimately ran a good race in District 1. The race was so close that it couldn’t be decided until provisional or otherwise questionable ballots were tabulated. In District 2, Republicans nearly ceded Martha McSally’s efforts until close to the end of the campaign in another race that came down to a razor-thin margin. Who’s to

say how big a win she could have had if the Republicans were paying attention? And in District 3, where a well-run Republican campaign nearly upset Democrat Raúl Grijalva two years ago, the GOP this year found a candidate who didn’t even put a scare into the five-term congressman. Grijalva claimed victory even before the first official vote count was released Tuesday night. • In the Legislature, Republicans lost their 21-9 supermajority. When the next session starts in January, they’ll have a 17-13 majority and that means they’ll have play nice now with Democrats. Who is to say their fall isn’t a result of voters tiring of the cram-down politics of Republican ideologues? Nowhere was their a bigger target than state Sen. Frank Antenori, R-Tucson, who not only failed to win re-election, the Democrats took a clean sweep of the district, even ousting the politically moderate Ted Vogt from the state House. In the waning days of the campaign, Antenori said more than $200,000 was spent on advertising to try to defeat him. But Antenori had trouble raising funds. Saying things like he wouldn’t be a “butt boy” to business interests didn’t help him raise money, either. • Ally Miller won her race for Pima County Supervisor, making her the first avowed Tea Party candidate to win an election in this region. Considering Republicans have represented the district for 36 years, it’s not particularly remarkable that she won. Her biggest challenge now is to serve in such a way that she will win re-election, something that hasn’t always been the case for Tea Party candidates. We started this editorial with a quotation and we’ll end it with another that’s apropos. This one is from Will Rogers who was supposed to have said, “I am not a member of any organized party — I am a Democrat.” That about describes the disarray of the Republican party. If Republicans ever hope to be a party that can make a difference, they’ll have to lose the ideologues and pugilists and put some adults in charge again.

InsideTucsonBusiness.com

NOVEMBER 9, 2012

OPINION GUEST OPINION

7 questions to ask when looking for a home care agency When a home care worker goes bad, it’s big news. Elder abuse, raided bank accounts, vanishing heirlooms — these events make splashy headlines. But if someone in your family needs help with bathing, cooking, getting in and out of bed or other activities of daily living to continue living safely at home, you may need home care services regardless of the headlines. Your job is to find the best provider. In Arizona most health facilities — including hospitals, nursing homes, rehabilitation centers and home health agencies (which provide skilled nursing and therapy care) — are licensed and monitored by the state Department of Health Services. Home care agencies are licensed in 23 states but in Arizona it’s buyer beware. Here, agencies need only a business license. The state has no say in how well they serve their clients — until a client becomes a victim, and by then it’s a police matter.

Replacing scary headlines with solid information can help assure that a safe, qualified worker is placed in the home. As you shop for a home care agency, here are some questions to JUDY CLINCO ask: • How do you screen applicants? Expect a current fingerprint card from the Department of Public Safety, a background check including driving and credit histories, verified references, and current CPR training and TB test. • Is your staff formally trained? Training needs vary. A companion-only placement doesn’t require formal training, but dementia and other conditions may call for

certified nursing assistant or caregiver certification. In Tucson, Pima Community College and the CareGiver Training Institute offer certification classes at different levels. • What experience do your caregivers have? Caregivers can gain experience by working at formal nursing homes, assisted living facilities, home care agencies or private placements. • How are your caregivers supervised? The agency should provide in-home supervisory visits to make sure medical protocols are being followed, the clientcaregiver relationship is appropriate, agreed-upon tasks are being done and the client is satisfied. • What insurance does your company have? Look for worker’s compensation (in case the caregiver is injured on duty), liability insurance (in case the client is injured), and bonding or third-party theft insurance.

• What if a caregiver misses a shift? The agency should have a staff member on call at all times in case a caregiver doesn’t show up for work, a problem arises during the shift or the client’s health changes suddenly. • Do you require a contract? If so, run. You should be able to cancel a service with 24 hours notice. These questions cover just the basics. You can also check with your physician or hospital social worker, friends and colleagues, and the Better Business Bureau. At last count there were 72 home care agencies in Tucson — they can’t all be the best. Choosing a home care agency is a big decision. For the safety and comfort of your loved one — and for your own peace of mind — ask the questions. Do due diligence. Don’t risk an uninformed choice.

Judy Clinco is founder and president of Catalina In-home Services Inc.

SPEAKING OUT

Domestic abuse is a costly problem for businesses Claudia, a hairdresser at the salon I frequent, impressed me as a woman who had her life together. She was also a caring mother of two children. Therefore I was shocked to learn that Claudia’s former boyfriend went to her home, shot her to death and then turned the gun on himself! Few would have guessed that Claudia’s life would take such a tragic turn. Sarah Jones, CEO of Emerge Center Against Domestic Abuse, says one in every four women will experience domestic violence in her lifetime. In Arizona there is a domestic-related death every three days. Nationally, an estimated 1.3 million women are victims of physical assault by an intimate partner each year. About 85 percent of domestic violence victims are women. Jones says, “domestic abuse does not discriminate. People in all socioeconomic levels of our society can be victims.” Domestic abuse workplace costs exceed $5.8 billion each year; $4.1 billion of this is for direct medical and mental health services, according to the Centers for Disease Control and Prevention (CDCP). In addition, the CDCP says “victims lost almost 8 million days of paid work because of the violence perpetrated against them by current or former husbands, boyfriends, and dates. This is the equivalent of more

CAROL WEST

than 32,000 full time jobs and almost 5.6 million days of household productivity as a result of violence!” What warning signs should employers look for? • An employee who is often

absent from work. • An employee who sometimes shows physical signs of abuse such as bruises. • An employee whose behavior changes • A person who frequently calls the workplace “to check up” on an employee; the victim. • Sometimes an abuser will force an individual to quit a job which makes the situation even worse because the former employee becomes more dependent, both financially and emotionally, on the abuser. In a situation where a victim has confided in a friend, the confidant can call Emerge’s 24 hour a day confidential hotline — 1-888-428-0101 or (520) 795-4266 — as many times as necessary. The victim can call the hotline as well for help and advice. The hotline receives more than 6,000 calls per year.

Emerge’s Jones says each person’s case is unique. It takes courage for the abused to leave a relationship. They won’t leave until they are ready. Victims are more vulnerable when they try to flee the situation, so it is vitally important for them to develop a safety plan. Jones urges those experiencing any kind of abuse to seek assistance. Emerge has an outreach center where victims can come for help. They can confidentially describe their situation and receive advice on establishing a safety plan, along with how to deal with repercussions when they leave the abuser. Employers are encouraged to talk about domestic abuse with employees. Human resource professionals and management teams concerned about productivity in the workplace and worker wellbeing should not hesitate to discuss the topic with employees. Emerge is always available to make presentations to businesses because they can become part of the solution for this serious workplace problem if the business people are better informed. Emerge is the result of a merger of several community agencies that served domestic abuse victims. It is “dedicated to stopping the cycle of domestic abuse and providing a safe environment and resourc-

es for victims and survivors of all types of abuse on their journey toward healing and self empowerment.” The organization provides community education and outreach. They teach awareness and send information out to churches and restaurants. Emerge assists more than 2,500 women and children annually through two emergency shelters. Jones says it costs $67 per day per person for shelter, food, and housing. There are referrals, information, legal assistance and support groups for those in need. Emerge relies on private contributions and government support for its services. During the recession the agency has lost 25 percent of its funding, which amounts to $1 million. What can the community do to help? Grocery store gift cards are needed for persons Emerge serves. Jones says we can become informed about domestic abuse and share the information with three other persons. Awareness is important.

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

22 NOVEMBER 9, 2012

INSIDE TUCSON BUSINESS

OPINION BUSINESS INK

Vehicle emissions test should be called American ‘Idle’ One hour and 6 minutes. Pull up to the entry gate. Take the little customer ticket. Drive around the corner. Pick a line. Three lanes to choose from, each about six cars deep. Wait. Idle. Welcome to another episode of “American Idle,” presented by the Arizona Department of Environmental Quality (ADEQ). Arizona’s vehicle emissions inspection stations are a place of business where you pay for the pleasure of wasting pricey gasoline while idling in line. Put it in park and spew those nasty pollutants. Plus, you get poor customer service. One hour and 6 minutes. You know the routine. In pursuit of cleaner air, ADEQ runs an emissions testing program. It’s mandatory, every year. Right up your tailpipe unless your car is 2008 or newer. Don’t blow a gasket, I love to inhale clean air. Yet I realize the state also is in desperate pursuit of revenue. There’s a $4 car title fee. The $8 registration fee. Plus, the vehicle license tax can be hundreds of dollars. Last year, drivers “emitted” some $850 million to the state via the program. But it’s not the fees that grind my gears, it’s the poor service and unintended consequences. Recently, we had a vehicle due for its test. Depending on your perspective, we’re either

mechanically fortunate or financially cursed to have a 1995 Ford in our family. Basically, after pulling into the testing bay after a long wait, the technician sneered ROGER YOHEM that I was in the wrong lane. His special lane was only for newer cars. Politely, I asked why he hadn’t walked the line and told customers in old cars to please move over one lane. His impolite reply was, “that’s why we have signs.” Back to the entry gate. Took another little ticket. Drove back around the corner. Three lanes to choose from, each now seven or eight cars deep. What signs? Those rectangles? High above the tall bay doors? Being over 50 with the eyes of an umpire, I crept forward to read them. Set into the building’s tile finish, the “that’s why we have signs” were about 18 by 24 inches and not especially noticeable. The vague message was: Designated lane for 1996 and newer vehicles. I pulled into the

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pounds of carbon dioxide (CO2). So while waiting in line, that old 1995 Ford put 20 pounds of CO2 into the air. Those 30 other cars around me exhausted about 300 pounds of CO2 while idling for 30 minutes. For a typical week, idling during those 15 peak hours produces 9,000 pounds of CO2. And when you include two really busy test stations, the exhaust is double that. (For anyone wanting to quibble with the numbers, I’ll allow a generous plus or minus 5 percent margin of error. The bottom line doesn’t change much.) Over time, residents should benefit from other consequences. In 10 years or so, most of those 1995 and older cars will be history. So should the smog stations and emissions “tax” if there are no clunkers left to test.

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correct lane. While waiting, the lines grew to over 30 cars. After about 10 minutes, ADEQ opened up a fourth testing bay. Driving away after one hour and 6 minutes, I started to wonder about the unintended consequences of the emissions program. With a little research, the dirty data spewed. A car that idles 30 minutes (with the air conditioning on) burns roughly a half gallon of gas, according to the American Automobile Association. Since most of my 66 minutes was spent idling, that cost me about $3.25. For those 30 other cars in line, if each idled an average 30 minutes, their communal burn was 15 gallons. Together, our fuel efficiency was an amazing zero miles per gallon. Typically, the smog stations are open about 60 hours a week. For the sake of discussion, say there are 15 hours a week of peak periods when 30 cars idle in line for 30 minutes. That’s 450 gallons of wasted gas. Multiply that by two really busy local stations and the squander is 900 gallons. That’s about $2,900 in fossil fuel gone up in smoke. And speaking of smoke, what about toxic emissions like carbon dioxide, sulfur and benzene? One gallon of burned gas emits about 20

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