Inside Tucson Business 12/14/2012 by Territorial Newspapers

IF WALLS COULD TALK Universal Wallboard has been part of many major construction projects in S. Ariz. PAGE 10

Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • DECEMBER 14, 2012 • VOL. 22, NO. 28 • $1

Clawing its way back Forecasters say regional economy getting better Page 3

It’s all good

Patrick McNamara photo | Andrew Arthur illustration

Prices, inventory and home sales climb in November Page 19

Carondelet latest to announce plans for healthcare facility in Sahuarita Inside Tucson Business In what could be shaping up as something of a competitive battle, Carondolet Health Network on Wednesday announced plans to open a healthcare facility in Sahuarita. On Sept. 27 Tucson Medical Center officials announced they were exploring plans to develop and operate a 32-bed acute-care hospital just to the south in neighboring Green Valley, along with medical offices. Carondelet officials are calling their planned facility a “health and wellness pavilion” that will take a proactive approach to patient health

needs as opposed to treating people in hospitals once they become ill. “We call it that because we are moving in the direction toward caring for a community’s health and wellness,” said Lisa Contreras, director of external communications for Carondelet. Construction of the Carondelet facility should begin next summer with the first phase completed in summer 2014. The initial phase is expected to be a 16,000-square-foot outpatient facility that will more than double the number of primary care physicians serving the Sahuarita area as well as serve as a satellite location for car-

diovascular specialists from the Carondelet Heart & Vascular Institute at St. Mary’s Hospital and neurologists from the Carondelet Neurological Institute at St. Joseph’s Hospital. Officials are still evaluating what would be included in the second phase but said it could include urgent and/or emergency care services, same-day surgery and lab and imaging facilities. The 21-acre site for the facility at Sahuarita and La Vallita roads, was acquired by Carondelet in 2006 when plans were announced to build a 78-bed, $62 million hospital. Those plans were dropped in 2008 but Ca-

rondelet officials remained in discussions with the Rancho Sahuarita Company, which developed the large master-planned community in the area. Contreras said the amount of money Carondelet plans to invest in the project is undetermined at this point. Carondelet’s announcement has no bearing on Tucson Medical Center’s plans for Green Valley. Vice president Julia Strange said TMC Healthcare is continuing its due diligence on its plans, which it is jointly pursuing with Scottsdale-based McDowell Enterprises.

2 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

InsideTucsonBusiness.com

DECEMBER 14,2012

NEWS

Tucson’s economy is improving: next year you might even feel it By David Hatfield Inside Tucson Business

C-Path, MS society form therapies consortium

TUCSON ECONOMIC INDICATORS FORECAST

The Tucson region’s economy is improving. Really. Not feeling it? Maybe next year. That’s the forecast from Marshall Vest, director of the Economic and Business Research Center for the University of Arizona’s Eller College of Management. The recovery, now in its fourth year, remains painfully slow by historic standards Vest told an audience of about 550 business

2011

2012

2013

2014

Jobs (non-farm)

+0.1%

+0.8%

+1.3%

+1.9%

Personal income

+4.5%

+3.6%

+4.4%

+5.4%

Retail sales

+7.6%

+6.1%

+3.4%

+3.5%

+15.7%

+29.3%

+31.6%

+20.1%

+0.5%

+0.9%

+1.1%

Housing permits Population

Annual growth percentage. 2011 is actual, 2012 is projected and 2013 and 2014 are forecasts. Source: University of Arizona Eller College of Management Economic and Business Research Center.

CONTINUED ON PAGE 4

UA economist Gerald Swanson’s swan song

Cale Ottens, Cronkite News Service

Inside Tucson Business This year’s Economic Outlook forecast luncheon may have marked the end of an era — Professor Gerald Swanson’s final presentation. His presentation, usually focusing on the U.S. and global economy, was often a highlight of the annual presentation because of his down-to-earth, comedic persona. This year was no exception. Swanson talked of some serious issues, noting for example that education matters when dealing with the unemployment rate for people 25 and over. People with CONTINUED ON PAGE 4

Marshall Vest

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Tucson’s Critical Path Institute, or C-Path, has joined forces with the National Multiple Sclerosis Society to launch a consortium to develop new standards for assessing outcomes in clinical trials of MS therapies. The goal is to accelerate the development of drug treatments. MS, a chronic, unpredictable neurological disease that affects the central nervous system, involves an immune system attack against the brain and spinal cord. Symptoms may be mild, such as numbness in the limbs, or severe, such as paralysis or loss of vision. These problems may be permanent or may come and go. According to the National MS Society, at least 400,000 in the U.S. have MS, and every hour someone is newly diagnosed. MS affects about 2.1 million people worldwide. The new coalition — called the Multiple Sclerosis Outcome Assessment Consortium — also includes industry, academia, patients and regulatory agencies. There are no treatments for the progressive forms of MS, said Carolyn Compton, president and CEO of C-Path.

Railroad tie maker extends UP contract L.B. Foster Company and Union Pacific Railroad announced they’ve agreed to a multi-year contract extension to continue supplying the railroad with pre-stressed concrete railroad ties manufactured at its plant at 2965 E. Fairland Stravenue, adjacent to Union Pacific’s main Tucson yard. Foster, which is headquartered in Spokane, Wash., said the extension will enable the company to continue improving the development of its name-brand CXT Concrete Ties. Since opening in 2006, the company has invested more than $15 million in its Tucson facility, which has about 50 employees. The previous contract was due to expire at the end of this month. As part of the extension, L.B. Foster and Union Pacific also agreed on new plans for handling warranty claims over the concrete ties. In February, the company closed a plant in Grand Island, Neb., acknowledging that some of the concrete ties made there were defective. More than 60 employees lost their job with that closure. The company also took a $19 million charge to support its corrective plan. In addition to Tucson, Foster makes CXT Concrete Ties at its Spokane facility.

EDITION INDEX Public Notices Lists Profile Inside Media Calendar On the Menu Arts and Culture

6 7-8 10 11 15 16 16

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

17 18 19 20 20 23

4 DECEMBER 14, 2012

Print subscribers of Inside Tucson Business should receive a mailer next week inviting them to change their delivery address for the weekly publication as part of a planned change to home delivery that will take effect Jan. 18. Circulation manager Laura Horvath said the mailer will be on heavy paper and allows subscribers to tear off a postcard-sized mailer to send back by return mail. On that postcard, subscribers can indicate whether the address is good for home delivery or change it to a better address. The change is being made as a result of the U.S. Postal Service’s planned closure of the Tucson mail sorting facility. Subscribers can continue to receive Inside Tucson Business by mail but deliveries most likely will not arrive until Monday or later each week after the sorting facility is closed in February. Under the new delivery system, Inside Tucson Business will be delivered along with other newspapers on Friday mornings each week.

2 Tucson firms noted for creating new jobs When it comes to job creation two Tucson companies, CyraCom International and Buffalo Exchange, were acknowledged by Inc. magazine this week for adding employees over the past three years. The magazine called them the Hire Power Awards. CyraCom, headquartered at 5780 N. Swan Road, created 453 jobs, or 69 percent of its total of 659 employees since the end of the Great Recession. The company was ranked No. 2 in Arizona and No. 46 on the magazine’s list of the top 100. CyraCom, which provides medical translation services, was reported by Inc. to have 2011 revenues in the range of $20 million to $50 million. Coming in at No. 10 on the state list was Buffalo Exchange, which specializes in selling and trading used clothing. The retailer created 65 jobs and has a total of 718 employees. Its 2011 revenue was in the range of $50 million to $100 million, according to Inc. Of the remaining eight companies, all but two were in the Phoenix area, including the state’s top-ranked firm Go Daddy, based in Scottsdale. The Web domain registration business created 1,403 of its 3,443 jobs in the past three years. Its revenue range was listed as $500 million to $1 billion in 2011. The two businesses recognized outside either of the state’s two largest metro areas were Safety Sam, a business products and services company in Yuma; and Chiricahua Community Health Centers in Douglas, which added 72 jobs for a total workforce of 176 employees. Its revenue was listed as $10 million to $20 million.

NEWS Study: Keeping courts out of foreclosures helps Arizona By Melanie Yamaguchi Cronkite Newes Service Not requiring mortgage lenders to take foreclosure cases to court has helped Arizona recover from the housing crisis faster than states that do have that requirement, according to an Arizona State University researcher. In a paper, Andra Ghent, an assistant professor specializing in real estate at the W.P. Carey School of Business, examines differences between states that require court hearings on foreclosures, referred to as judicial states, and those that don’t. Arizona allows both judicial and non-judicial procedures. “The overall time cost is really a big issue and the poor condition the properties are going to be in in these judicial states,” Ghent said. “For these judicial states, you have

to start a court proceeding, so you actually have to go to a judge and that depends, of course, on the judge’s availability.” Ghent said that in general, states like Arizona that don’t require judicial involvement have been able to get through the bulk of foreclosures caused by the housing crisis. States that require judicial approval of foreclosures, such as Florida and New York, face backlogs and shortages of judges available to hear cases, she said. “They still have a lot of excess in supply, whereas in Arizona we’re not out of the woods completely but we worked our way through a lot of the foreclosures in the queue,” she said. A foreclosure occurs when a property owner can’t make a payment on his or her loan, and the first step of the process usually involves the lender sending the borrower a formal notice of default. In Arizo-

na, lenders can proceed with a judicial or non-judicial foreclosure. Diane Drain, a Phoenix real-estate attorney, said 99 percent of lenders in Arizona dealing with residential foreclosures will choose the non-judicial route. Known as a trustee sale, it involves a third party who will sell the property within 90 days. “That’s efficient,” Drain said. “It is inexpensive for the lender because lawyers don’t have to do them. They can be done by title companies and others who are licensed.” Drain said foreclosures in Arizona are slowing because lenders are becoming more efficient in processing trustee sales. “Lenders are being a little smarter about doing their foreclosures,” she said. “They’re speeding them up a little bit rather than just letting homeowners stay in their homes for months and years.”

SWANSON CONTINUED FROM PAGE 3

bachelor’s degree or more are twice as likely to have a job as those with less than a high school degree. Although the potential fiscal cliff could send the U.S. economy back into recession if politicians in Washington, D.C., don’t act, he said it’s a misnomer to call it a cliff. “It’s more like a slope. It’s not all going to happen at once.” And, after explaining the differences among a progressive, regressive and proportional tax, he said the trick is to dry to develop a “fair tax” that will satisfy the needs of the taxpayer, the government imposing the tax and the public at large. To really fix the economy, he said, “What we need is the ‘Wizard of Oz’ to give consumers a heart, give businesses courage and give politicians a brain.” And with that this year’s forecast lun-

cheon ended but not before Ken Smith, who was dean of the University of Arizona’s Eller College from 1980 to 1995 and again on an interium basis in 2004, gave Swanson a send-off gift and asked the cheering audience if they wanted him to come out of retirement for next year’s forecast luncheon. Technically, Swanson retired two years ago after 41 years as an economics professor at the UA but he came back to teach a few classes. Students in his last course took their final exams on Tuesday. In an interview Swanson was noncommittal about the future. He admitted he was surprised at how emotional it was to pack up his office. Asked what he was going to do next, Swanson said: “I don’t know. I just really Gerald Swanson don’t know.”

Thomas Veneklasen

Subscribers invited to change delivery address

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ECONOMY CONTINUED FROM PAGE 3

leaders attending the UA’s 32nd annual economic forecast Dec. 7 at the Westin La Paloma Resort and Spa. As he said a year ago at the event, it will take until around 2015 before the damage from the recession will be repaired. The good news, he said, is that there appears to be some modest acceleration as 2012 comes to a close. For the Tucson region, which has depended on the housing market to stimulate the economy, that industry is now beginning to show the first glimmers of renewed life. After peaking at about $225,000 in 2006, median home prices in the Tucson region plummeted plummeted to about $120,000 in 2011 and bumped along around $125,000 until a steady increase began in mid-year and is now past $140,000. Meanwhile the inventory of homes on the market is starting to get lean and new

home construction permits are starting to tick upward. Still though, Tucson remains hampered by slow growth, recovering just 11 percent of jobs that were lost in what’s now called the Great Recession. Nationally, the U.S. has recovered almost half of the jobs that were lost since 2008. Vest said that lack of mobility remains a major factor in Tucson’s recovery. People who want to move here aren’t able to do so because they can’t sell their houses in other parts of the country. Consumers are spending money, though there have been some recent signs showing slower retail sales in recent months. October year-over-year retail sales in the Tucson region were up 1.8 percent. Restaurant and bar sales are up a robust 7.2. percent. Gasoline sales were down 0.9 percent but Vest said that also had to do with the price of gas dropping.

Going in to 2013, Vest painted three potential scenarios for Tucson’s job growth. The most pessimistic would see about 5,000 jobs added over the next three years. A middle ground would be about 15,000 jobs and the most optimistic projection is for about 35,000 new jobs. At the annual economic outlook forecast, Vest has typically offered statistics focusing on the Tucson region and comparing them to Phoenix, statewide and U.S. statistics. At one point in this year’s presentation, he suggested that Tucson be compared with Phoenix as part of Arizona’s megapolitan region called the Sun Corridor. “We really are dependent on each other,” Vest said, a remark that drew groans from the audience. Contact reproter David Hatfield at dhatfield@azbiz.com or (520) 295-4237.

InsideTucsonBusiness.com

DECEMBER 14,2012

NEWS

Safety report card gives hospitals mixed grades

This Week’s

Good News UA, ASU agree: The economy is improving When it comes to economists, the University of Arizona’s Marshall Vest and Arizona State University’s Lee McPheters are two of the most respected in the state. And whether we’re talking Tucson or Phoenix, it should be considered somewhat of a relief that this month both are on essentially the same page when it comes to forecasting the future. The recovery is slowly continuing and the state is about three years away from what will be considered full recovery, including the jobs that were lost in the financial meltdown. Not to put a damper on things though, there is that matter of the “financial cliff ” that could throw the timetable out of whack.

Patrick McNamara

The Tucson

The University of Arizona Medical Center received poor grades in the report.

By Patrick McNamara Inside Tucson Business An updated report card on hospital safety gives mixed reviews to hospitals in the Tucson region. Oro Valley Hospital earned a top grade of “A,” two other hospitals received “B” grades, two others got “C”s and two got “D”s in the report issued this month by the Leapfrog Group. No Tucson area hospitals received an “F.” “We are laser-focused on safety,” said Leah Binder, CEO of the Leapfrog Group, the Washington, D.C., organization that issued the Health Safety Report. “People in Tucson deserve better, these scores are not good.” The report card has its critics, including the American Hospital Association, that says “many of the measures Leapfrog uses to grade hospitals are flawed and they do not accurately portray a picture of the safety efforts made by hospitals,” according to a statement issued by Nancy Foster, vice president of quality and patient safety policy for the association. The data in the latest report card included some that was used in Leapfrog’s earlier report card issued in June, though hospitals were asked to submit additional details this time. The Tucson region’s lone “A”-graded hospital, Oro Valley Hospital, 1551 E. Tangerine Road, had received an “A” in the previous report. Carondelet St. Mary’s Hospital, 1601 W.

St. Mary’s Road, and Northwest Medical Center, 6200 N. La Cholla Blvd., both received “B” grades in the latest report. That’s the same grade St. Mary’s had received in June but Northwest was moved up from a “C.” Carondelet St. Joseph’s Hospital, 350 N. Wilmot Road, and the University of Arizona Medical Center-South Campus, 2800 E. Ajo Way, both received “C” grades, both of which were the same as in June. The University of Arizona Medical Center (UAMC) main hospital, 1501 N. Campbell Ave., and Tucson Medical Center, 5301 E. Grant Road, both were dropped to “D” grades from “C” grades in June. Unlike after the June report, hospitals that didn’t fare so well this time around generally took benign positions with these latest results. Julia Strange, a vice president at Tucson Medical Center, put out a statement saying, “There are many hospital surveys and rating systems out there measuring different information in different ways. Leapfrog, although this is their first year, provides yet another data set that we will use to identify opportunities to continue to improve patient care.” Without commenting on the Leapfrog results, officials at UAMC noted their hospital has ranked high in similar surveys done by others. “We value the importance of continuously measuring and improving patient safety and the quality of care we provide,” said Dr. Andy Theodorou, chief medical of-

ficer for UAMC, in a written statement. “We also feel there is value in the various methods available to compare ourselves to our peers as a way to always raise the bar and improve the standard of care. At this point in time, we use the University HealthSystem Consortium for this purpose.” UAMC has been ranked among the University HealthSystem Consortium’s top 10 hospitals in four of the past five years. Both the University HealthSystem Consortium and the Leapfrog Group are membership-based organizations and while some hospitals have said they believe participation in the research played a role in the rankings, Leapfrog says that is not the case when it comes to the safety report card. Larry Aldrich, of the Arizona Business Coalition on Health and a regional partner of the Leapfrog Group, said half of the 790 hospitals that received “A” grades, including Oro Valley Hospital, did not participate in the survey. “The criticism Leapfrog is experiencing stems from the fact that, like other publicly reported measures, the data accumulated and measured is often dated by up to a year or more because it must go through a lengthy validation process,” said Jim Beckmann, president and CEO of Carondelet Health Network, in a written response to submited questions. “That being said, when the Leapfrog Group first handed out individual grades back in June it was a wake-up call for the more than 2,600 hospitals measured. Despite any debate about CONTINUED ON PAGE 6

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

Easier time for school funding? While many of us are focused on things either associated with the holidays or the end of the year, 90 people are preparing to take their seats for the first session of the 51st state Legislature, which is due to convene Jan. 7. Whether it’s the fact that revenues are showing some improvement or just plain political cynicism, there is a growing belief among those in the education lobby that school funding may not be targeted for cuts so much this year. The first session of any two-year legislature is a time when lawmakers want to get as much done as possible. If it proves to be good, they can tout it a year later during a re-election bid. If it’s bad, they get it out of the way and hope voters have short memories. In light of the failure of Proposition 204, which would have made a 1 percent state sales tax a permanent funding source for education — a measure many politicians viewed as being bad policy — there is the added incentive to try to prove that it was never needed in the first place. To do that, lawmakers will need to come up with as much of $1 billion Proposition 204 would have generated.

1 week to ﬁscal cliff solution? On the subject of politicial cynicism, there was this from the University of Arizona’s Economic Outlook luncheon Dec. 7. If there’s going to be a solution to the fiscal cliff, it will likely come at the last minute a week from today, Dec. 21. That’s the last day before Congress is scheduled to take its winter recess. And no matter how many peoples’ livelihoods may be at stake, “something magical happens” when there’s a looming Congressional recess. Will this time be different?

6 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

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

FORECLOSURE NOTICES Tucson Aviation Supply LLC 1540 E. Weiding Road 85706 Tax parcel: 140-24-0620 Original Principal: $272,000.00 Beneﬁciary: Bank of Tucson Auction time and date: 11 a.m. Feb. 21, 2013 Trustee: Ronald M. Horwitz, Jaburg & Wilk, 3200 N. Central Ave., Suite 2000, Phoenix First American Title Insurance Co. 4678, 4784, 4690, 4696, 4677, 4667, 4661, 4711, 4751, 4761, 4771, 4781, 4730, 4740 and 4750 S. Calle De Montoya; and 7740 and 7748 W. Calle Don Quixote 85735 Tax parcel: 212-43-1930 through 212-43-2000, 212-432040 through 212-43-2100, 212-43-2130 and 212-43-2140 Original Principal: $125,000.00 Beneﬁciary: Herbert M. Grossman and Nancy Lee Brock Auction time and date: 10 a.m. Feb. 27, 2013 Trustee: G. Lawrence Schubart, Stubbs & Schubart, 340 N. Main Ave.

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

IFS Flooring LLC, 2122 W. Lone Cactus Drive, Suite 14, Phoenix, against Pennington Street Partners LLC, co/ Fenton Investment Co. Inc., 6700 N. Oracle Road, Suite 233. Property: 101 E. Pennington St. Amount owed: $3,858.95. Vulcan Materials Company Western Division, 2526 E. University Drive, Phoenix, against Hutton Partners LLC, 734 Cherry St., Chattanooga, Tenn., and Family Dollar Stores, PO Box 1017, Charlotte, N.C. 28201. Property: 6641 N. Sandario Road, Picture Rocks. Amount owed: $12,782.22.

Release of state liens Raygarr LLC, 18848 S. Garrison Hills Drive, Sahuarita Southern Arizona Glassworks Inc., 8455 E. Broadway Desert Brickworks Inc., 8940 E. Indian Bend Road Ground Effects Landscaping Inc., 1602 S. Burning Tree Ave. Peter G. Schmerl PC, 105 E. Speedway Appaloosa In The Woods LLC, 11680 N. Copper Mountain Drive, Oro Valley Casa Molina Inc., 6225 E. Speedway Dragon Fly Cafe, Livorno and KTN Restaurant Management Inc., 1935 E. Via Linda, Suite 120, Scottsdale Club 21 and Jacob Enterprises Inc., 2920 N. Oracle Road Lytle Electric LLC, 3637 E. Monte Vista Drive #1 Jeff Engler Insurance Agency, 1650 E. River Road, Suite 202 Kim & Sons LLC, 4650 W. Ina Road, Marana R-Place Bar & Grill LLC, 3412 N. Dodge Blvd. Malek’s Cars and Trucks, 3641 E. Fort Lowell Road, Suite A Canoa Hills Golf Course LLC, 1700 Country Club Drive, Plano, Texas Casa Bonita Painting LLC, 1766 W. Rue De La Montagne Canoa Hills Golf Course LLC, 1700 Country Club Drive, Plano, Texas A Plus Heating & Cooling and Timothy Mansﬁeld, 4545 S. Mission Road, Trailer 135 La Indita and Maria S. Garcia, 622 N. Fourth Ave. Finan Land Development LLC, 332 N. Longfellow Ave. Saguaro Ranch Developoment Corp., PO Box 70207, 85737 Bubby’s LLC, 8687 N. Golden Moon Way, Marana

Release of mechanics liens CIS Rooﬁng Inc. against Stewart Title & Trust of Tucson, Kaufman Pebble Creek LLC and Kaufman Properties LLC Cemex Construction Materials South LLC against Sahuarita Self Storage LLC United Metal Products against Moreland Arizona Properties and Avondale Auto Group HD Supply Facilities Maintenance Ltd. against Firm Foundations-Columbus Village Servpro of Northeast Tucson against Corbett Partners Cemex Construction Materials South LLC against Rancho Sahuarita Commercial Ventures LLC

National drug shortage is having effect in Arizona By Lorri Allen Cronkite News Service A national drug shortage is endangering patients’ health and forcing doctors, pharmacists and first responders to scramble to find supplies, according to experts. “It’s a terrible problem,” said Tom Van Hassel, vice president of the Arizona State Board of Pharmacy and director of pharmacy at Yuma Regional Medical Center. “On any given day, there are 15-20 drugs we’re scrambling to find.” Pharmacists, especially in rural Arizona, are paying more and spending more time to get drug supplies, Van Hassel said. “These are drugs used every day in our hospital. I don’t think any hospital in the state has escaped this shortage,” he said. “When we’re out, we’re truly out. The nearest hospital is 150 miles away.” Van Hassel said a pill that used to cost 40-60 cents may now cost $8-$20. Rural hospitals can be especially susceptible to drug shortages, said Neil MacKinnon, director of the Center for Rural Health at the University of Arizona’s Mel and Enid Zuckerman College of Public Health. “The supply chain is more fragile in rural settings, so when the drug is short, it can impact care for the entire community,” he said. “In that case, the surgery has to be postponed or the patient has to go to a different community to receive care.” Van Hassel blamed the shortage on an inconsistent supply of raw materials to drug makers and the consolidation or closing of manufacturing plants. Plus, once some suppliers realized shortages could occur, they bought up supplies, he said. “It’s like a snowball going downhill,” Van Hassel said. “When one product runs out, everyone goes to the second and then the third.” Going to second and third choices is a common occurrence for Dr. Sean Elliott, a

pediatrician who oversees infection prevention for the UA Health Network. With a girl who’d been on a heart-lung machine for three months, Elliott said he was worried about side effects from a drug that wasn’t his first or second choice. “I was forced to use an antibiotic called Colistin, which is highly toxic to kidneys,” Elliott said, “and at the time, my patient’s kidneys were one of the only working organs in her body.” The drug stopped the resistant infection, and the girl’s kidneys are working, too, Elliott said. But he added that doctors must be creative to deal with the drug shortage. In addition to antibiotics, the most severe shortages have been for cancer drugs, anesthesia and pain control medication. The shortage has led to medical errors because health care providers are not as

familiar with second-choice medications, said Dr. Melinda Burnworth, a member of the Arizona Pharmacy Association and an associate professor at Midwestern University College of Pharmacy-Glendale. “It’s not fatalities – it’s more close calls or near misses, meaning that the medication was dispensed and an inappropriate amount was given to the patient or a different concentration was not intended for the patient,” Burnworth said. A silver lining of the shortage may be that pharmacists and doctors are talking to each other and to colleagues in other facilities. “Our hospital complex and I’m sure all the others as well have become very, very good at communicating with each other and trying to be proactive,” said the UA’s Elliott. “We’re facing the challenges.”

tients.” Aldrich, who had been CEO of University Physicians Healthcare before it was merged and became part of UAMC in 2010, said the Health Safety Report is designed to give patients and medical professionals a standardized measure of comparing safety at hospitals across the country. “I think patients are asking the question of where they should go to get great medical care,” Aldrich said. More than 180,000 people die each year as result of avoidable hospital errors, Aldrich said. More than 2,600 hospitals across the U.S. were given grades in this latest report. Process and structure make up half of

the total score with the other half of the score based on outcomes. Evaluations in the process category measure how often hospitals give patients the treatment recommended by their physicians. Structural evaluations measure the environment where patients receive care and whether the facility has computerized systems to help prevent patient care errors. And outcome criteria measure what happens while a patient is receiving care and includes data on errors, accidents and injuries the occur while a patient is in a hospital.

SAFETY REPORT CONTINUED FROM PAGE 5

scoring, those of us who work in healthcare recognize that we must do better.” For their part, officials overseeing both Oro Valley Hospital and Northwest Medical Center saw their high grades as confirmation its employees do quality work. “When we receive recognition from the Leapfrog Group and other external organizations, it affirms the important work being done by our medical staff, nurses and other employees as they care for patients every day,” said Kim Chimene, director of system marketing for Northwest Medical Center and Oro Valley Hospital, in a written statement. “Oro Valley Hospital values transparency and consumer knowledge about the quality of care provided for pa-

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

InsideTucsonBusiness.com

DECEMBER 14,2012

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8 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

DECEMBER 14,2012

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10 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

PROFILE

Universal Wallboard is big player in commercial structures By Alan M. Petrillo Inside Tucson Business If walls could talk, many of them inside Southern Arizona’s biggest and most notable commercial buildings would be whispering the same name — Universal Wallboard Corp. Those whispering walls include the University of Arizona’s football stadium, the U.S. General Services Administration’s Mariposa Port of Entry at Nogales, the UA’s Stevie Eller Dance Theater at the School of Dance, the Unisource Energy headquarters building in downtown Tucson, the original Biosphere 2 near Oracle and an assortment of hospital, medical, military, college, church, government, casino and hotel facilities. Universal Wallboard Corp., with its 100plus employees, is a full-service commercial and residential drywall and metal framing contractor, but the lion’s share of its business these days comes from commercial contracts. Universal Wallboard was incorporated in 1972 when Joe Wittman Sr. and Robert Hall bought the company and began primarily as a residential drywall contractor. Hall died about 15 years ago and Wittman Sr. became the sole owner of the firm. “We did a lot of work for Fairfield Green Valley for 22 consecutive years at a time when residential work was 70 percent of our business. But with the latent work defect litigation running through California at that time, our insurance underwriter suggested we concentrate on commercial work and we ended up solely in that area,” Wittman Sr. said. After starting in rented space, where the company was for 14 years, it is now at 1.5-acre site on 44th Street near the Palo Verde overpass. “We have a 10,000-square foot building with about 3,500-square feet of office space and the rest warehouse space,” he said. “We also have a fleet of 24 pickup trucks with all our necessary working equipment on them.” Joe Wittman Jr., operations chief of the firm, said Universal Wallboard has been involved in a number of high-visibility jobs.

BIZ FACTS

Universal Wallboard 3555 E. 44th St. (520) 512-8444 www.universalwallboard.com

ABOVE Universal Wallboard’s Joe Wittman Jr., left, Joe Wittman Sr. and senior estimator Wayne Murray. LEFT Universal Wallboard employees at the University of Arizona’s north end zone stadium expansion, from left foreman Ron Hyvonen, foreman Jason Sabourin and project manager Wade Wheat.

“We’ve worked from the New Mexico border to Yuma, and from the Mexican border up to Casa Grande,” he said. “Anything you can imagine in the commercial world — industrial, retail, hospitals, schools, government, even barracks at Davis-Monthan Air Force

Base, we’ve done them.” Wittman Jr. noted that Universal Wallboard currently is working on the north end zone expansion at the UA’s Arizona Stadium, as well as at the Mariposa Port of Entry where he said they are “dramatically expanding the entryway from four cars and two truck lanes to 12 cars and eight truck lanes.” On the north end zone project, he said his company is installing metal stud framing both on the interior and exterior walls, followed by drywall on the interior. The exterior is a glass-mat board sheathing, a fiberglasstype product, which will be overlaid with the exterior finish of the building. The Mariposa Port of Entry will have similar interior and exterior finishes, Wittman Jr. said. The Stevie Eller Dance Theater on the east mall on the UA campus is “an exotic-looking building with a metal exterior that’s won numerous awards, and has architectural and acoustic crags on the wall that was an interesting and fun project to work on. It was very conceptual and has a very nice finish inside,” Wittman Sr. said. One of the things that made it unusual was

the height of the interior walls, he said. “Usually there’s a steel superstructure that we attach our steel studs to,” Wittman Sr. said. “In this case we built walls 70 vertical feet into the air in a truss system of double walls, reinforced back and front with our materials to create a vertical truss. It is very unusual in that there is no structural steel supporting the wall.” Universal Wallboard also worked on the interior living spaces at the Biosphere 2, which was built between 1987 and 1990. “We were relatively new on the commercial market then and they asked us for interior living spaces four stories high that could not be attached to the existing superstructure of the Biosphere,” Wittman St. said. “We couldn’t attach to it because the stress on the outer skin might have broken the bio seal, so we came up with our own unique solution to build the structure without outside attachments.” Wittman Jr. noted that Universal Wallboard recently completed the 9-story high Unisource Energy headquarters, where it framed all the interior and exterior of the project. Another project the company just completed were dual student residence halls on the UA campus. Wittman Jr. said working with various commercial clients means his firm is faced with different forms of complexity with each job. “But ultimately, a wall is a wall, and we have the experience to put them up,” he said. “We look at the challenges we face with each job, take what we’ve learned in the past and apply it so that we can do the job safely and with our usual quality.”

InsideTucsonBusiness.com

DECEMBER 14,2012

MEDIA

Star’s owner still plans to launch pay website next year By David Hatfield Inside Tucson Business It hasn’t happened yet at the Arizona Daily Star but parent company Lee Enterprises says it is still pursuing plans to put paywalls up on its digital websites. As part of the company’s fourth-quarter earnings report, company officials said they will have paywalls up by the end of this month at nearly all of the company’s websites but, notably that excludes its two largest newspapers, the Star and the St. Louis Post-Dispatch. Details of how the paywall would work haven’t been announced — and indeed that may be part of the issue since Lee isn’t following a set pattern at each location — but all should be in place some time early in 2013, according to company officials. In most cases, Lee Enterprises has adopted a metered system under which a certain number of stories can be viewed for free before a charge kicks in. Also, contrary to some earlier reports, most Lee websites are offering lower fees to subscribers of its print editions. As for the financials for the fiscal year ended Sept. 30, Lee Enterprises reported a loss of $21.3 million, or 43 cents per share, an improvement from the previous year’s loss of $147 million, or $3.27 a share.

The company said it is continuing to be hit with interest expenses on its debt but is ahead of its own schedule to reduce that debt. As of the end of the fiscal year, the debt for the 2005 acquisition of Pulitzer newspapers, which included the Star, was down $48 million from a year ago to $946 million. The company said it benefitted from reduced operating costs, including a 7 percent reduction in full-time employees last fiscal year.

Names in news After nearly 25 years at KOLD 13, Mindy Blake is leaving the station to become community relations director for Amphitheater Public Schools. Over the years Blake has anchored several different KOLD newscasts and currently is the “breaking news” and noon news anchor. Here last day on the air is today (Dec. 14). In a memo to staffers, news director Michelle Germano noted that Blake’s career at the station included “corporate changes.” Looking back on it, Blake certainly has seen her share of KOLD ownership changes — eight to be exact: From 1987 the station’s owners have been the Detroit Evening News, Gannett (which within one day spun it off due to conflicting ownership of the Tucson Citizen

newspaper), Knight Ridder Broadcasting, News-Press & Gazette Company, New Vision Television, Ellis Communications and the Retirement Systems of Alabama, which in 1997 merged its broadcast divisions together forming Raycom Media, the company that now owns the station. An overdue acknowledgement of the arrival of Craig Fleming as marketing director at KOLD. He fills the spot that was vacated early this year by Lec Coble, who was promoted to a corporate position within Raycom in Birmingham, Ala. Fleming came to Tucson from Orlando, Fla., where he had been the marketing director for WFTV, the ABC station for just over a year. Previously he had worked as a writer and producer at stations in New York, Boston, Pittsburgh and Indianapolis. Long-time Tucson advertising executive Joe Erceg has joined the sales staff at KOLD. Among his previous stops, Erceg was with Arrowhead Advertising and the Journal Broadcast Group. One more from the where-are-they-now department; former KOLD 13 anchor Kris Pickel is now in Cleveland co-anchoring NBC-affiliate WKYC’s newscasts at 6 and 11 p.m. weekdays. Pickel was KOLD’s main news anchor for nearly 10 years before leaving in

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the summer of 2006 to go to work in her hometown, Sacramento, Calif., where she was weekend co-anchor on the CBS-owned station, KOVR, before going on to Cleveland in April this year.

Breaking news in lobby A Kentucky sister station to KVOA 4 had a news story walk in its front door on Monday. A man wanted for murder in Lexington, Ky., showed up in the lobby of WLEX about 10 a.m. saying he wanted to turn himself into police. In an interview on the station’s sofa Brandon Lamont Bailey, 28, said he had thought about fleeing to Louisiana but family members persuaded him to turn himself in. Bailey said he shot a 22-year-old Dec. 1 in self-defense after an argument. Both KVOA and WLEX are NBC affiliates owned by Cordillera Communications, the broadcast division of Evening Post Publishing, headquartered in Charleston, S.C.

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

2012-2013 United Way Campaign Cabinet All Stars Chaired by Paul Bonavia, Chairman and CEO, Tucson Electric Power Left to Right: Doug Myers, Hilton & Myers Advertising; Donna Morton, TMC Foundation; Mike Hammond, PICOR; Debbie Chandler, City of Tucson; Craig Martin, Starwood Hotels & Resorts Worldwide Inc.; Ed Palma, Jim Click Automotive Team; Jaime Gutierrez, University of Arizona; Howard Stewart, AGM Container Controls, Inc.; Dan Anderson, Dillard’s; Eric Schindler, Child & Family Resources, Inc.; Paul Bonavia, Tucson Electric Power; Teddi the United Way Bear, Jim Holmberg, Community Volunteer; Tony Penn, UWTSA Not pictured: Brett Rustand, Brian Kish, Brian Spencer, Cindy Parseghian, Codie Ritchie, Hank Atha, Joe Snell, Karla Avalos-Soto, Ken Haley, Kristin Wendler, Lillie Roman, Lisa Lovallo, Maggie Shafer, Mike Deconcini, Nancy Wimer, Phil Swaim, Steve Lace

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You work and live in a small city in the Western United State. You are president of the local chapter of a national professional association. You took the job because there didn’t seem to be an overwhelming desire among the membership to take that position and you believe strongly in the organization’s purpose. You want to see it succeed but, of late, attendance at meetings has been faltering and the enthusiasm among the membership has waned. Now what? First, understand that you are not alone. Data published by the American Society of Association Executives (ASAE) notes that in the past few years retention rates for professional associations has dropped from percentages in the 90s to 70s and low 80s. To keep the organization relevant to its members, time constraints — today you are doing your work and that of two people who got “downsized” and not replaced — as well as economic, generational — programming that appeals to up-and-comers has little relevance to seasoned pros — and attitudinal — what’s in it for me — challenges must be overcome. You are also not alone because your greatest resource is the membership. Engage them. Involve them in committee work and small projects. There’s not enough space in this column to give you all of the answers you may seek in your quest to keep the organization vibrant. For that, let me recommend two superb books: “Race for Relevance” by Harrison Coerver and Mary Byers, and “The End of Membership As We Know It” by Sarah L. Sladek. Between the two, you will be well on your way to gathering information to make your organization relevant to its members. Let’s look at three themes these two works have in common. 1. Build strong, nimble, competencybased boards. Boards are funny entities, sometimes. The myth is “bigger is better.” Not so. A small and competent group of decision makers can often accomplish more in an hour than many boards do over several meetings. And leave the negative thinking at the door. Naysayers suck the energy out of a meeting and accomplish nothing. 2. Understand the membership. Why would someone join this association? Why did you? Have the reasons for joining now evolved into a different need? Can someone participate as a non-member and simply pay a little more? Do you really provide something exclusive not available

elsewhere? 3. Master the demographics. What is the universe in which you exist? If you have a small chapter, but members represent 90 percent of the potential universe, BOB BERRY you’re doing pretty well. Find out. And while you’re at it, be unrelenting about retention. Steve Cary, a strategist with ASAE, advises to figure your “true retention rate,” which is your drops minus those drops who have changed fields, passed away, have budget problems, or other issues beyond your control. This will clarify your relevance picture to determine if you really are sinking or your boat is just at low tide like everyone else in a down economy. In November you read in this column that “Content is King” regardless of the delivery system. That imperative is especially true for professional associations that expect the programming content offered at meetings to drive revenue. John Guare’s “Six Degrees of Separation” is fiction, but also a theory that has become widely accepted. So why not put it to work for your association? How many members do you have? Every one of them knows someone who knows someone etc. Somewhere in that flow will be exciting, interesting, relevant presenters. Go find them. And finally there is a point at which you are alone. And that is vision and leadership. Only you can provide that. But if you provide a clear direction and purpose and create a culture of commitment where all members, regardless of age or experience, are dedicated to the success of the association, then you will indeed have made your organization relevant to its members.

Contact Robert “Bob” Kingdon Berry, CEO of Kingdon-Nichols Public Relations, at www.kingdon-nichols.com. Berry is a member of the Public Relations Society of America, Southern Arizona chapter, whose members write this monthly column.

InsideTucsonBusiness.com

DECEMBER 14,2012

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Organizations and the quest to stay relevant Perhaps you have heard Arizona has more non-profit organizations per capita than most states. Maybe you have simply noticed the increasing number of community and business organizations. This is both a blessing and a curse. A blessing because these organizations are doing good work serving our community. A curse because the pie to support them has gotten smaller. Although each organization serves a specific purpose or niche, there are a couple of reasons why we have seen an increase in new organizations over the last five to 10 years. First, the barrier to entry is not hard to overcome. It doesn’t take much to start a nonprofit in Arizona. Second and more significant in my opinion, is the efficient means by which to communicate with stakeholders. Social media and email marketing tools such as Constant Contact and Infusionsoft have made it easy to effectively communicate to the masses, and the cost is minimal. Do you remember getting a printed newsletter from your chamber of commerce or trade association? Monthly newsletters are practically nonexistent these day, yet not that long ago, they were the primary source of communications for organizations. They were expensive, too. Most organizations could not afford to mail a newsletter to promote their programs and events, so those that did got the attention and attendance. Competition for membership and sponsorship dollars is at an all-time high. Changing demographics in the workplace are also playing a stronger role. Baby Boomers were arguably the best thing to happen to business groups, Rotary clubs and other civic organizations. Baby Boomers are loyal and willing to commit long term. As Baby Boomers leave the workforce decreases, and are replaced by Gen X and Millennials, an organization’s value proposition needs to change accordingly. What we offer, how we communicate our message, and the way we deliver it are more crucial than ever. Belonging to a civic or business group because it is “the right thing to do” is quickly fading. Business professionals don’t stick around in the same places as long as they used to; so meeting their current needs, and being flexible and willing to adapt is essential to an organization’s ability to sustain a high level of relevance. Relevance is what sells memberships and keeps people engaged. An organization can’t be everything to everyone. It can’t cover all bases (politically and

socially), and throwing programs at the wall to see what will stick is a recipe for disaster. The Arizona Small Business Association (ASBA) is no JERRY BUSTAMANTE exception. Having been in existence for 40 years is no guarantee that we will be around for the next 40 years. We must remain relevant. Not that long ago, ASBA’s Southern Arizona office looked and functioned like it was the Eastside Chamber of Commerce, and many referred to us as that. Today, we are a very different organization. We have proactively reinvented ourselves to serve a unique purpose and not duplicate activities. As a statewide business organization, our vantage point is from a higher altitude, and we are much more focused now. I describe ASBA as a statewide buying group that leverages the purchasing power of 11,000-plus small businesses to help them save money on everything from paper clips to medical insurance. We help our members make money by connecting them through a unique social media tool that promotes them and helps them get found. Finally, we are a political organization that strongly believes what is good for Arizona small businesses is good for Arizona. Our lobbying efforts are also focused statewide. You will find us camped out at the state Capitol when the Legislature is in session, because that is where we are concentrating our efforts and can make the biggest impact It’s all about relevance and the perpetual quest to increase it. At the end of the day, a non-profit organization is no different than a for-profit business. It has customers, bills to pay and needs to stay in business and succeed. Perhaps the biggest upside to having so many organizations in our state — while the size of the pie remains the same — is that we have become highly efficient and more in tune to the needs of our members and community. Those that fail to change will cease to exist.

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, (520) 327-0222.

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When you hear the word â&#x20AC;&#x153;convention,â&#x20AC;? what springs to mind? Economic impact? More visitors to the region? People wearing nametags? How about volunteers? Each year Destination Marketing Organizations (DMOs), like the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), deliver thousands of volunteers to their respective communities. Call it Volunteer Tourism â&#x20AC;&#x201D; or â&#x20AC;&#x153;Voluntourismâ&#x20AC;? â&#x20AC;&#x201D; corporate social responsibility or just plain â&#x20AC;&#x153;giving back,â&#x20AC;? convention groups are doing it and doing it in droves. The MTCVB Voluntourism program, part of Convention Services, was started a few years ago when we hosted a gathering of local nonprofit staff responsible for coordinating volunteers for their respective organizations. It grew into a section of visittucson.org â&#x20AC;&#x201D; visittucson.org/voluntourism â&#x20AC;&#x201D; that connects MTCVB clients with the right local volunteer opportunity. But donâ&#x20AC;&#x2122;t take my word for it. Here is what one local nonprofit has to say: Voluntourism activities are a tremendous benefit to local non-profit organizations by allowing them to share their mission with people who might not discover it in their hometown. Volunteering provides a hands-on way for visitors to see their positive impacts and feel a personal connection to those Tucsonans they are helping. In the case of Benâ&#x20AC;&#x2122;s Bells Project, an organization founded in Tucson, voluntourism groups have been instrumental in spreading the mission across the United States. It is one thing to read about Benâ&#x20AC;&#x2122;s Bells story, but to hear it come alive while sculpting a clay piece that will go on a Benâ&#x20AC;&#x2122;s Bell is truly inspirational. â&#x20AC;&#x201D; Barb Anderson, development Director, Benâ&#x20AC;&#x2122;s Bells Project Since the inception of our Voluntourism Program, we have linked hundreds of convention attendees and individuals with local nonprofits like Benâ&#x20AC;&#x2122;s Bells, including Habitat for Humanity, United Way of Tucson and Southern Arizona, Community Food Bank and others. Recently, and in honor of our professional societyâ&#x20AC;&#x2122;s Celebrate Services Day, we collaborated with the event services team at the Hilton El Conquistador Golf and Tennis Resort on a Voluntourism trade show hosted at the MTCVB offices downtown attended by 45 non-profit professionals, hotel services staff and meeting planners. Since no two conventions are alike, it can sometimes take an effort on our part to help the client assess the groupâ&#x20AC;&#x2122;s needs. For

example, we have to ask is the group able to leave the hotel? If not, an experience using Benâ&#x20AC;&#x2122;s Bells â&#x20AC;&#x153;to-goâ&#x20AC;? kits for bell painting and assembly may be just the right fit. A JANE ROXBURY meeting planner secures a room at the hotel or resort, posts an announcement in the conference program, creates a few signsâ&#x20AC;Śand weâ&#x20AC;&#x2122;re off. With volunteer time going to a Tucson-specific charity! Other groups already have relationships with known entities such as Habitat for Humanity, and will work with us to get the connection and then work with Habitat to help fund and plan the build sometimes years in advance of the event. Then there are those like a corporate incentive group from a few years ago, that told us â&#x20AC;&#x153;we typically collaborate with a local artist to create a mural for a charity that serves women and children.â&#x20AC;? Loving the specificity of it, we quickly connected them with locals who fit the bill. They wound up creating a beautiful triptych, under the leadership of Diana Madaras, which was then donated at the grand opening of Diamond Childrenâ&#x20AC;&#x2122;s Medical Center. So, the next time you attend a conference or convention in another city, check your registration materials to see if there is an option for you to volunteer in the host community. And when you go to that volunteer gig, know that thereâ&#x20AC;&#x2122;s likely a counterpart here in Tucson doing something similar, paying it forward!

Contact Jane Roxbury, director of Convention Services at the Metropolitan Tucson Convention and Visitors Bureau, at jroxbury@visittucson.org. This monthly column is prepared by the MTCVB.

InsideTucsonBusiness.com

DECEMBER 14,2012

CALENDAR SPECIAL EVENTS

23rd Annual Holiday Electric Parade Every Friday and Saturday Dec. 7 through Dec. 22 7:15 through 9:15 p.m. Tanque Verde Swap Meet 4100 S. Palo Verde Road Contact: Marie DeGain supersunday@ tanqueverdeswapmeet.com (520) 822-6666 www.tanqueverdeswapmeet.com Building a Diverse and Vibrant Community Award Dinner Saturday (Feb. 9) 6:15 to 9 p.m. Westin La Paloma Resort & Spa 2800 E. Sunrise Drive Contact: Naomi Weiner director@ aiďŹ&#x201A;tucson.org 520.322.9544 www.aiďŹ&#x201A;tucson.org Proceeds from this dinner event will beneďŹ t the Arizona Israel Friendship League REGULAR MEETINGS

Arizona Business Leads of Tucson North Every Wednesday except the ďŹ rst Wednesday of the month 7:30 to 9:00 a.m. Mimiâ&#x20AC;&#x2122;s CafĂŠ 4420 N. Oracle Road Info and RSVP: jill@ronstadtinsurance.com Arizona Real Estate Investors Association Second Tuesday, 5:30 to 8:30 p.m. Windmill Suites 4250 N. Campbell Road Information: (480) 990-7092 or www.azreia.org Cost: Free, members, $15 nonmembers pre-registered ($20 door) Arizona Small Business Association SO/HO (Small OfďŹ ce/Home OfďŹ ce Community) First and Third Wednesdays 8:15 to 9:30 a.m. ASBA conference center, 4811 E. Grant Road, Suite 262 Information: www.asba.com Cost: Free to ASBA members Avra Valley Community Council Monthly meetings Fourth Tuesday of every month, 6 p.m. Halberg Center 15790 W. Silverbell Road Contact: Carlie Page at (520) 682-5139 or Luis Castaneda at (520) 682-6619 BNI Executive Partners Chapter Business Network International Every Wednesday, 1 to 2:30 p.m. Tucson Osteopathic Medical Foundation 3182 N. Swan Road RSVP: Phyllis Daugherty (520) 405-5659 BNI Leading Edge Chapter Business Network International Every Tuesday, 7 to 8:30 a.m. Viscount Hotel 4855 E Broadway RSVP: Earl Yousey (520) 229-7718 BNI Givers Gain Chapter Business Network International Every Friday

11:30 a.m. to 1 p.m. El Parador, 2744 E. Broadway RSVP: Chuck Zaepfel (520) 740-0911 BNI Northwest Chapter Business Network International Every Thursday 7 to 8:30 a.m. Home Town Buffet, 5101 N. Oracle Road RSVP: Audrey Sharpe (520) 405-1405 Tucson Night Out First Tuesday Mixer First Tuesday of the month 5 to 7 p.m. McMahonâ&#x20AC;&#x2122;s Prime Steakhouse, 2959 N. Swan Road Information: www.tucsonnightout.com

BNI Peak Performers Business Network International Every Tuesday 11:30 a.m. to 1 p.m. The Grill at Hacienda Del Sol, 5601 N. Hacienda Del Sol Road RSVP: Rochelle Riley (520) 297-9067 BNI Platinum Chapter Business Network International Every Thursday 11:30 a.m. to 1 p.m. The Hilton El Conquistador, 10000 N. Oracle Rd. RSVP: Andrew Hayes (520) 975-4504 BNI Sunrise Success Chapter Business Network International Every Thursday 7 to 8:30 a.m. Miguels, 5900 N. Oracle Road RSVP: Alexcis Reynolds (520) 690-6576 BNI Professional Partners Chapter Business Network International Every Wednesday 11:30 a.m. to 1 p.m. Tucson Country Club, 2950 N. Camino Principal RSVP: Kevin Wood (520) 260-3123 Business Principals of Tucson First and third Thursdays 7 to 8 a.m. The Hungry Fox, 4637 E. Broadway RSVP: Steve Dunlap at (520) 622-0554 Casas Adobes Rotary Club Every Wednesday 7 to 8 a.m. La Paloma Country Club, 3660 E. Sunrise Drive Information: www.casasadobesrotary.org

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16 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ON THE MENU

ARTS & CULTURE

Tana Fryer cares deeply about her cheeseâ&#x20AC;Śliterally

Train museum and Boys Chorus holiday events are this weekend

nance such as slicing paper-thin layers Call her Tucsonâ&#x20AC;&#x2122;s Cheesemonger-infrom the surface perimeter of the blocks Chief. with surgical precision, regularly re-wrapWhen Tana Fryer arrives at work each ping the blocks in a special storage wrap, day, sheâ&#x20AC;&#x2122;s reminded why she put her taking in the unique aroma of each cheese corporate career plans aside to â&#x20AC;&#x153;run away to evaluate its distinctive â&#x20AC;&#x153;noseâ&#x20AC;? and join the circus.â&#x20AC;? and tasting each cheese to But Fryerâ&#x20AC;&#x2122;s circus is not ensure the intentions of the about animals, clowns and cheesemakers have been tightropes. The starring role fulfilled. here is cheese â&#x20AC;&#x201D; specialty and Once the cheese is cared for, artisan cheese â&#x20AC;&#x201D; and her Fryer moves on to the other passion for what she calls this functions of Blu, assembling â&#x20AC;&#x153;living foodâ&#x20AC;? has guided her specialty cheese trays and gift down a path that now leads to a baskets for customers, preparing commercial kitchen in Mercado for her next catering job and San AgustĂn, 100 S. Avenida del MATT RUSSELL working with local chefs to develConvento just west of downop custom cheese programs for town. their restaurants. The journey began when Fryer was To keep current, Fryer is a regular fixture selected for an intensive cheesemonger at American Cheese Society conferences, training program at Pastoral Artisan which can showcase more than 1,500 Cheese and Bread in Chicago. cheeses from around the world. The curriculum focused on the things She occasionally stumbles across an youâ&#x20AC;&#x2122;d expect in an academic immersion â&#x20AC;&#x153;exciting findâ&#x20AC;? such as a Rogue River Blue into the world of cheese â&#x20AC;&#x201D; how cheese is wrapped in pear brandy-soaked syrah made, storage and aging techniques, food leaves from Oregon or the Fiore di Capra safety, wine pairings and the art of tasting. Chevre from Pomerene down the road in But a core part of the program was Cochise County. among the most important lessons for this Freyer loves being a part of what she monger-in-residency to learn, cheese care, calls a â&#x20AC;&#x153;renaissance in the cheese moveand that is what she brings to her new ment.â&#x20AC;? Hail to Tucsonâ&#x20AC;&#x2122;s Cheesemonger-inTucson business called Blu. Chief! â&#x20AC;&#x153;Cheese is alive, and requires regular attention and care,â&#x20AC;? she told me as she discussed the importance of rotation and Contact Matt Russell, whose day job is why itâ&#x20AC;&#x2122;s important to maintain a consistent CEO of Russell Public Communications, at 40-degree temperature and demonstrated mrussell@russellpublic.com. Russell is also hands-on caring techniques that â&#x20AC;&#x153;make the the host of â&#x20AC;&#x153;On the Menu Liveâ&#x20AC;? that airs 4-5 most out of the milk.â&#x20AC;? p.m. Saturdays on KNST 97.1-FM/790-AM. Cheese care requires routine mainte-

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Santa Claus pays a visit to the Southern Arizona Transportation Museum An exhibit of oil paintings New Mexico Saturday (Dec. 15) for its eighth annual contemporary artist Ed Sandoval and Holiday Express event featuring a reading pastels by Ann Huston are part of a holiday of the 1985 childrenâ&#x20AC;&#x2122;s book â&#x20AC;&#x153;The Polar exhibition at the Bridge Gallery, 5425 N. Express,â&#x20AC;? holiday singing and Kolb Road in Ventana Plaza. photos. The free event takes From 6-8 p.m. Saturday, Navajo place from 11 a.m. to 1:30 p.m. artist Norbert Peshlakai will at the museum, 414 N. Toole appear with his jewelry creations. Ave. in the Historic Depot. The Bridge Galllery is open 11 Also this weekend the a.m. to 7 p.m. Mondays through Tucson Arizona Boys Chorus Saturdays and noon to 5 p.m. presents its annual holiday Sundays. concert at 3 and 7:30 p.m. in Crowder Hall in the College of Fine Arts, 1015 E. Olive Road on HERB STRATFORD the University of Arizona Seventy-five years after J.R.R. campus. Tickets are $15 for Tolkienâ&#x20AC;&#x2122;s book was published, the general seating, $20 for premium seating first installment of a three-part film and $8 for children. Buy them online at adaptation of â&#x20AC;&#x153;The Hobbitâ&#x20AC;? opens today. www.boyschorus.org. Expectations couldnâ&#x20AC;&#x2122;t be much higher from fans and from the studios, New Line and MGM, that co-financed the film. Early reviews are positive so expect lines for A unique one-time-only performance awhile. takes place at 3 p.m. Sunday when the Another film of note opening this Invisible Theatre presents â&#x20AC;&#x153;Hollywood weekend is â&#x20AC;&#x153;Chasing Ice,â&#x20AC;? a documentary Revisited,â&#x20AC;? a stunning musical review that follows award-winning photographer putting the vocalists in the actual costumes James Balog on his quest to document the worn by the actors who made the music worldâ&#x20AC;&#x2122;s disappearing glaciers. Itâ&#x20AC;&#x2122;s playing famous. Pianist Greg Schreiner, who owns the Loft Cinema, 3233 E. Speedway. the costumes, accompanies the performers as they recreate the classic moments. The Contact Herb Stratford at herb@ show is at the Berger Performing Arts ArtsandCultureGuy.com. Stratford teaches Center, 1200 W. Speedway on the campus Arts Management at the University of Arizona. of the Arizona State Schools for the Deaf He appears weekly in Inside Tucson Business. and the Blind. Tickets are $42 each. Buy them online at www.InvisibleTheatre.com or make reservations at (520) 882-9721.

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InsideTucsonBusiness.com

DECEMBER 14,2012

PEOPLE IN ACTION

PAUL BUTLER

ELECTIONS Two Frisby Insurance members have been elected to the state board for the National Association of Insurance and Financial Advisors, NAIFA-Arizona. Michael A. Sandoval will serve as vice president and Diana Brettrager will serve as immediate past president. NEW HIRES

hired David R. Updegraff, M.S.W., Ph.D., as its new CEO. PCOA for All, Inc., is a subsidiary of Pima Council on Aging. Updegraff is the retired president of a private school for deaf children in Buffalo, N.Y. He formerly served on the PCOA board. Northwest Allied Physicians at Oro Valley Hospital has announces the hiring of several new physicians in the areas of family medicine, neurology

PCOA for All, Inc. has

REBECCA MILHOLLAND

and gastroenterology. Dr. Paul Butler is a boardcertified gastroenterologist with more than 27 years of practice experience. He treats patients with diseases and disorders of the digestive system. Butler completed both his residency in internal medicine and fellowship in gastroenterology at The Ohio State University Hospitals in Columbus, Ohio. Dr. Rebecca Milholland is a neurologist who completed all of her medical education,

KENT DIEHL

JULIA MCKEE

{TELL US ONLINE} Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print. including her fellowship, at the University of Arizona. Milholland went on to complete a fellowship in headache and epilepsy with a focus on evaluation, classification, diagnosis and

treatment of both classes of disorders. Dr. Kent Diehl is a board-certified family medicine physician practicing at the Northwest Allied Physician office in SaddleBrooke. He completed

his residency at the University of North Dakota Center for Family Medicine in Bismarck, North Dakota. Dr. Lorraine Manciet is a family medicine physician and a fourth generation Tucsonan. Prior to her medical education, she was a research scientist at the University of Arizona where she studied the benefits of healthy lifestyle choices, including diet and exercise, for the treatment of diabetes.

MARK C. IRVIN

ABCO Solar, an electrical contracting and solar installation company with offices in Tucson, Phoenix and New York City, has announced the hiring of Julia McKee as sales associate. Previously, McKee was the co-founder of a national water treatment company and an account executive with several local radio and TV stations.

AWARDS The Society of Industrial and Office Realtors (SIOR) recognized Mark C. Irvin with its “President’s Award for Community Service.” Although active in helping many Tucson non-profits and civic groups, Irvin was recognized primarily for his efforts with the Boys and Girls Clubs. He also was presented with a check from SIOR for $5,000, which he directed to the Boys and Girls Clubs of Tucson.

BRIEFS GET ON THE LIST

Last call for the year Inside Tucson Business is wrapping up data gathering for the 2013 edition of the Book of Lists. Information that was published in Lists throughout the year, as well as those in the yet-to-be-published final two Lists will be included in the publication. Businesses that need to update data from what was submitted earlier in the year can do so by going to www.InsideTucsonBusiness.com, then click on the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions. The final two lists remaining to be published in the weekly edition of Inside Tucson Business are: • Dec. 21: Oldest business • Dec. 28: Health and fitness clubs, Book stores 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.

TRANSPORTATION

RTA names interim to replace Hayes The Pima Association of Governments Regional Council and Regional Transportation Authority Board have named Cherie Campbell as interim director. Campbell will step in to replace Gary Hayes who resigned because of unspecified health reasons. Hayes has been dealing with some health issues for several months and been working

from home since April. Campbell had been the PAG and RTA director of planning. Previously, she had served as PAG’s transportation planning director and was actively engaged in development of the $2.1 billion, multi-modal Regional Transportation Authority plan approved by Pima County voters in May 2006. Campbell has worked for PAG for 20 years. Hayes was hired in January 2004. Prior to that, he served as executive director of the Central New York Regional Planning and Development Board in Syracuse, N.Y., since 1976.

Gas priced under $3 per gallon in Tucson Tucson area gas prices continued their downward trend this week, reaching their lowest price of the year, according to AAA Arizona’s weekly Fuel Gauge report. The price for unleaded regular averaged $3.01 per gallon this week, down nine cents from a week ago and down from $3.01½ a year ago. The average indicates there are significant numbers of stations selling gas at less than $3. per gallon. The Tucson price continues to be the lowest average in Arizona, which statewide averaged just $3.24 per gallon. Prices have steadily been declining since the second week of October.

SPORTS/RECREATION

County buys 615-acres for future park The Pima County Board of Supervisors approved on Dec. 11, the purchase of

615-acres on the northwest side for a park. The county will pay CalPortland Company $4.2 million for the property at the confluence of the Santa Cruz River, Cañada del Oro Wash and Rillito River near Orange Grove Road and Interstate 10. Funds for the purchase come from the Pima County Regional Flood Control District, a special taxing district that charges a secondary property tax on properties within the county. County officials plan to use the property for bicycle trails, athletic fields and new roadways. Additional recreational proposed on this property include a dog park, BMX park,

competition-level mountain bike park and a model airplane park. In addition, residents will be able to reach the area by walking or biking on the improved Loop multiuse path that passes through the project area. In 2010, the Pima County Bond Committee approved $10 million for improvements to the area, which county officials have named Corazón de los Tres Ríos del Norte after the three waterways that converge there. The proposed bond spending would be subject to voter approval in the next bond election, which county leaders have discussed as possible for 2013 or 2014.

18 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

Putting your money where it will have the biggest social impact The days of protest marches and songs may be over. A new method of voicing beliefs or dissention with the status quo is available via socially responsible investments (SRI). Whether the focus is on advancing environmental causes, building healthy communities or promoting corporate ethics, investors interested in making a difference in the world are spurring interest in SRIs. Socially responsible investing traces its roots to religious concerns and expanded in scope in the 1970s and 1980s as investors joined other protestors against apartheid by choosing not to invest in companies involved in South Africa. From there, the definition of SRI evolved to include the avoidance of “sin stocks” — stocks of companies that derive earnings from gambling, alcohol or tobacco. More recently, the concept has expanded further to include any number of social and environmental issues as well as a growing concern with “corporate character” — seeking out companies that have commendable records on corporate governance. According to the Forum for Sustainable and Responsible Investment, an association that works to advance investment practices for positive societal impact, assets in professionally managed SRI funds totaled $569 billion in 2010, up from $12 billion in 1995. With more than 250 mutual funds, 25 exchange traded funds and 175 alternative investment vehicles available to U.S. investors who use ESG factors, there are many opportunities for individual investors to find suitable socially responsible funds. Among some of the more popular options: • Alternative energy funds: These hold baskets of securities of corporations that are actively involved in researching or producing alternative energy sources. They search out corporations involved with technologies including solar and wind power, biofuels, hydropower and other sustainable and renewable energy sources. • Eco-friendly funds: Focus on ecofriendly corporations and can include can include companies that strive to improve the environment, produce environmentally friendly products or take steps to minimize their negative impact on the environment. • Sustainable resource funds: Invest in companies that strive to maximize returns while ensuring the survival of natural resources. Examples include sustainable water, which includes everything from water distribution to treatment to consumption, and sustainable climate. One of the ways to find these funds — or

to invest in individual stocks or bonds of these companies — is through screening, the practice of evaluating investments by defining certain guidelines. Originally, the W. DAVID FAY focus of SRIs was to avoid companies that were engaged in undesirable activities but that has given way to a positive screening approach to invest in companies that make progressive contributions to society. Another way to engage in socially responsible investing is through shareholder activism. Investors seek to positively influence corporate behavior of the companies whose securities they own by prodding management to steer a more responsible social and/or environmental course. A third way is through community investing. Community investing projects are small and local, and work by lending individuals and local groups the capital they need to improve their own communities in a socially positive and environmentally sustainable way. Your dollars will help provide access to capital and basic financial services to low-income communities. Proponents of socially responsible investments have always had to combat the notion that SRI underperforms the broader universe of investments. Yet there is a growing body of evidence that suggests otherwise. For instance, the MSCI KLD 400 Social Index (which screens out sin stocks and companies with poor human rights records) shows that since its inception in 1990, the index posted annualized returns of 9.51 percent versus 9.07 percent for the S&P 500. Still, skeptics of sustainable and responsible investing say selecting one or two quality funds from the SRI fund universe is one thing, but building a well-diversified portfolio consisting entirely of socially screened funds is quite another. Even though top-performing SRI funds can now be found in all major asset classes, adequate diversification remains a key consideration.

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

Dec. 12

Dec. 5 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

0.02 0.08 15.54 42.48

0.02 0.07 13.85 42.71

0.00 0.01 1.69 -0.23

0.03 0.01 9.56 35.20

0.12 1.00 15.94 43.40

8.65 0.65 2.60 10.61 60.97 8.71 89.32 12.18 54.74 3.39 19.69 37.53 37.42 29.87 39.84 16.16 97.72 39.07 47.54 10.72 83.82 64.17 19.21 32.52 31.83 62.93 61.10 192.95 31.25 60.28 5.55 42.77 35.73 15.27 43.75 26.59 1.18 37.87 34.73 41.44 58.40 38.86 35.92 37.37 47.72 68.15 19.45 17.11 58.14 50.61 17.85 46.66 42.38 11.90 10.02 41.94 39.64 60.54 17.74 31.06 47.26 21.41 124.70 21.01 12.70 31.87 68.94 36.67 33.50 10.10 20.60

8.57 0.50 2.22 10.46 60.10 8.60 87.62 12.08 55.08 3.28 18.75 36.46 36.88 30.04 38.60 15.92 105.95 38.88 46.18 9.71 83.04 63.50 18.59 32.16 30.30 64.02 61.57 188.65 31.46 59.97 5.60 41.20 35.50 14.04 44.15 26.71 1.20 36.42 35.20 41.06 57.34 38.87 35.27 35.20 47.44 66.76 17.53 16.20 57.25 48.83 17.46 45.80 41.21 11.57 9.79 42.44 38.56 62.04 17.33 29.86 46.05 19.89 122.86 20.42 12.11 31.76 71.65 35.57 32.98 10.12 19.57

0.08 0.15 0.38 0.15 0.87 0.11 1.70 0.10 -0.34 0.11 0.94 1.07 0.54 -0.17 1.24 0.24 -8.23 0.19 1.36 1.01 0.78 0.67 0.62 0.36 1.53 -1.09 -0.47 4.30 -0.21 0.31 -0.05 1.57 0.23 1.23 -0.40 -0.12 -0.02 1.45 -0.47 0.38 1.06 -0.01 0.65 2.17 0.28 1.39 1.92 0.91 0.89 1.78 0.39 0.86 1.17 0.33 0.23 -0.50 1.08 -1.50 0.41 1.20 1.21 1.52 1.84 0.59 0.59 0.11 -2.71 1.10 0.52 -0.02 1.03

7.97 0.24 1.48 4.92 50.95 5.30 73.73 11.41 52.10 2.97 14.18 24.40 22.37 15.97 22.19 11.94 78.81 34.81 36.44 7.83 42.54 50.27 11.65 30.54 21.38 38.84 51.43 177.06 27.10 50.89 3.94 30.42 26.10 6.17 42.72 20.98 0.65 18.21 24.12 36.42 48.01 30.42 27.93 20.21 38.15 55.00 15.69 5.54 44.56 38.63 14.73 33.03 28.89 6.25 7.76 38.20 25.08 47.25 14.04 26.06 33.41 17.25 97.82 18.36 4.97 25.43 57.18 28.53 25.18 5.59 14.52

10.92 0.83 3.65 10.71 61.17 9.75 90.93 27.95 60.00 4.93 21.16 38.72 37.96 32.70 39.93 16.55 105.97 43.43 49.23 12.25 89.98 67.20 22.79 48.96 32.50 65.92 63.89 211.79 37.70 62.33 5.85 46.49 37.54 17.30 55.25 27.11 1.81 39.33 36.47 43.36 62.83 42.17 41.84 42.59 49.68 71.25 43.18 18.30 58.70 50.83 23.16 47.03 85.90 14.32 10.20 46.08 40.35 65.80 18.23 34.24 47.90 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

DECEMBER 14,2012

INSIDE REAL ESTATE & CONSTRUCTION

Home prices, sales and inventory all on the rise By Roger Yohem Inside Tucson Business Along with an increase in the prices of homes sold, inventory continued to climb for the fifth consecutive month in November. The average sales price hit $182,539, a new high for the year, according to the latest data from the Tucson Association of Realtors Multiple Listing Service. The median sales price continued to hold in the mid-$140,000s for a fourth consecutive month. Year-to-date, total sales are now within 185 of last year’s 12,791 closings. Through November, 12,506 homes have been sold (see chart). Since January, the average sales price has increased $25,480, or 16 percent, to $182,539 from $157,059. The November median sales price is up $19,627, or 15.7 percent, to $144,627 since January. After bottoming out in June at 3,474, the number of active listings has steadily risen to 4,430 in November. The highest number of listings, 517, were in the price range of $200,000 to $249,999. Next highest amount of inventory, at 475 homes, was in the $300,000-to-$399,999 range. The best-selling homes were priced from $100,000 to $139,999 with 205 deals closed. There were 168 homes priced at $1 million or more on the market but only three sold. Last month, 994 homes were sold, down from 1,074 in October. Through November, closings for 2012 are averaging 1,137 per month, according to the Realtors report. Although inventory has been increasing the past five months, it’s down 14.7 percent from November 2011.

THE PULSE:

TUCSON REAL ESTATE

12/3/2012 11/26/2012

Median Price Active Listings New Listings Pending Sales Homes Closed

$151,000 5,012 372 322 165

Source: Long Realty Research Center

$155,000 5,056 382 297 341

2007 3,258 4,114 3,035 884 810 753 12,881 1,073

1st Qtr 2nd Qtr 3rd Qtr Oct. Nov. Dec. Total Mo. avg.

30 YEAR 15 YEAR 3/1 ARM

Current

2008 2,312 3,155 2,847 846 654 802 10,616 885

2009 2,235 3,153 3,222 1,063 1,011 886 11,570 964

2010 2,622 3,667 2,547 752 800 907 11,295 941

2011 2,828 3,711 3,294 982 1,015 961 12,791 1,066

2012 3,321 3,863 3,254 1,074 994 12,506* 1,137*

*Year-to-date Tucson Association of Realtors Multiple Leasing Service Data.

Sundt taps Hedlund Sundt Construction executive Eric Hedlund has been named to the company’s charitable Foundation’s board of directors replacing chief financial officer Ray Bargull who retired this year. Hedlund is Sundt’s executive vice president and chief operating officer who manages the company’s Building Group. The Sundt Foundation enables the company’s employee-owners to financially support charitable, non-profit organizations. It is funded primarily through employee donations and company matching. The foundation’s focus is on improving the lives of disadvantaged children and adults living near a company office or a major Sundt project. Hedlund, who has been with Sundt for more than 20 years, is a registered professional civil engineer and certified professional constructor. He is a past president and life director of the Arizona Builders’ Alliance. He also has held leadership positions with national construction industry organizations.

HSL buys 41st complex HSL Properties has acquired its 41st apartment complex in Arizona with the purchase of Sundown Village Apartments, 8215 N. Oracle Road, Oro Valley. The 14.9-acre, 330-unit complex was acquired for $18.55 million from JIK Properties, Miami Lakes, Fla.

WEEKLY MORTGAGE RATES Program

Sales and leases

Residential Home Sales Tucson Metropolitan Area

Last Week

12/10/2012

One 12 Month 12 Month Year Ago High Low

3.38% 3.625%APR 3.38% 3.625%APR 4.95% 2.88% 3.125%APR 2.88% 3.125% APR 4.22% 2.75% 3.00%APR 2.75% 3.00% APR

4.95% 4.22%

The above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000 Information provided by Randy Hotchkiss, National Certified Mortgage Consultant (CMC) Hotchkiss Financial, Inc. P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000 MB #0905432. Rates are subject to change without notice based upon market conditions.

3.38% 2.88%

Built in two phases, in 1984 and 1994, Sundown Village has four swimming pools and a spa, a fitness center and clubhouse. The complex is currently undergoing a $2 million renovation. HSL Properties, 3901 E. Broadway, and its affiliated companies are owned by Humberto Lopez. The firm owns apartment, hotel and office properties primarily in the western U.S. It also lays claim to being the largest apartment owner in Southern Arizona. The Sundown Village acquisition was financed by National Bank of Arizona. Art Wadlund, Hendricks & Partners, handled the transaction. HSL Properties is currently building two new luxury apartment projects. One is a $29 million, 272-unit complex called Encantada at Dove Mountain, Marana. The other is a $30 million, 288-unit complex called Encantada at Steam Pump Ranch, Oro Valley.

Cartun to lead MLS Sue Cartun, Keller Williams Southern Arizona, is the 2013 president of the board of director of the Tucson Association of Realtors Multiple Listing Service. Cartun, based at 1849 N. Kolb Road, has more than 30 years experience in the industry and is Keller Williams’ operations manager and designated broker. She will be joined on the board by president-elect Kimberly Clifton, Tierra Antigua Realty; vice president Henry Zipf, Henry Zipf Co.; and treasurer David Painter, Realty Executives Tucson Elite. The 2013 directors are Jim Adams, Kevin Kaplan and Steven Redmond, all with Long Realty; Dan Santa Maria, Santa Maria Realty; Jim Strong, Coldwell Banker Residential Brokerage; Maureen Thompson, Integra Group Real Estate; and Bob Zachmeier of Win3 Realty. A subsidiary of the Tucson Association of Realtors, the Multiple Listing Service is a cooperative real estate database of home listings and sales in Southern Arizona.

• Redyns Development LLC purchased a 12,800 square-foot building at 5455 S. Nogales Highway for $1..2 million from Fluoresco Lighting-Sign Maintenance Corp. The transaction was handled by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services. • Industry Hair Studio LLC purchased a 7,691-square-foot retail at 4045 E. Broadway for $400,000 from Obedin Family, represented by Nancy McClure and Jayme Fabe, CBRE. The buyer was represented by Kristy Kelly, Long Real Estate. • Code Plus Mechanical LLC purchased a 4,790 square-foot industrial building at 3441 E. Milber St. for $250,000 from James M. and Sharlyn Riley, represented by Rob Glaser and Brandon Rodgers, Picor Commercial Real Estate Services. The buyer was represented by Ron Campbell, Prudential Foothills Real Estate. • BE Aerospace leased 74,325 square feet at 1668 S. Research Loop from Foothills Business Ventures LLC, represented by Gary Emerson, GRE Partners. Peter Douglas, Picor, represented the tenant. • Euro Design Systems leased 15,625 square feet at 2560 N. Huachuca Drive from Legacy Business Properties LLC, represented by John Wilson and Mike Hennessy, Burris, Hennessy and Co. The tenant was represented by Rob Glaser, of Picor. • Presson Midway LLC, 4500 E. Speedway, leased space to the following: 2,400 square feet to MIKID; 1,822 square feet to A Plus Printing & Typesetting; 1,765 square feet to European Market; 1,200 square feet to Shut Out Inc.; and 1,200 square feet to United Standard Systems. The transactions were handled by Rob Glaser and Paul Hooker with Picor. • Wearpro Inc. leased 1,500 square feet at 4855 N. Shamrock, Suite 101 from Shamrock Properties LLC. Brandon Rodgers with Picor handled the transaction. • Presson Corporation, 1870 W. Prince Road, leased 1,440 square feet to each of the following: Maricopa Water Processing Systems; S.M.S. Systems Maintenance Services; Natural Energy Plus; and Coronado Engineering & Development. The transactions were handled by Rob Glaser and Paul Hooker with Picor. • A1 Garage Door Service leased 1,300 square feet at 3710 S. Park Ave., Suite 709, from Gateway Industrial Park LLC, represented by Pat Welchert and Jeff Zellet with Picor.

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

20 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

Economy is improving, really ... it’s news Could it be people don’t care about the economy anymore? Sure we get inundated with more than we could ever hope to absorb from the lip-flappers and other know-it-alls in the national media but come on, who knows more about what’s happening in Tucson and Southern Arizona than Marshall Vest, director of the Economic and Business Research Center at the University of Arizona’s DAVID HATFIELD Eller College of Management? For 32 years each December, he has given the region’s preeminent economic forecast for the upcoming year. Just last week, Inside Tucson Business columnist Roger Yohem referred to Vest as “professional economist extraordinaire.” Each year, the forecast has been preceded by a news conference. Eight years ago, the first year I was editor of Inside Tucson Business, that news conference was attended by reporters from multiple newspapers. Besides the Arizona Daily Star, there was the Tucson Citizen and the Arizona Republic from Phoenix. Several TV stations had news crews there, even a reporter from NPR outlet KUAZ. When I showed up to this year’s news conference, I was the only one. I chatted briefly with Vest, retiring professor Gerald Swanson, J.P. Morgan Chase economist James Glassman and George Hammond, the new associate director of the Economic and Business Research Center. I had four of the brightest minds on the Tucson economy all to myself. As happens in unexpected circumstances, I didn’t make the most of my good fortune. We wound up talking a bit about the economy, some other issues and a little small talk. Still, I couldn’t help but wonder why I was the only member of the news media amongst them. Liz Warren-Pederson, manager of marketing and communications for the Eller College, said no other media outlets asked to attend. She sent out notices but couldn’t come up with an answer for the media shutout. At the luncheon event, I sat next to Debbie Drysdale who runs the CEO Roundtable of Southern Arizona and told her what happened. “Are people tired of hearing about the economy?” she wondered. Maybe, but news is news and Southern Arizonans deserved to hear about the forecast. About 550 people paid $80 a person to hear the forecast that day at the Westin La Paloma Resort and Spa. I figured other reporters got there late and simply missed the news conference. Surely they would still cover what Vest and the economists had to say. But no. Nothing in print. Nothing on TV or radio. Nothing in any other digital media I could find. The only mention was what the Economic and Business Research Center posted on its own website. I realized this wasn’t about news. This was about the state of the news media. There may be more digital platforms where people can go to get news but the number of people actually doing the work of real news gathering has shrunk. Fortunately, Vest had mostly positive news to report. Tucson’s economy is continuing its slow recovery and next year, if things work just right, we might all actually start feeling it at this time.

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

EDITORIAL

Opportunity for TUSD to innovate Poor Tucson Unified School District. Try as they might, the people working within the distict can’t catch a break. On the heels of closing nine schools in 2010, administrators are now looking at shutting down up to 14 more by the start of next school year. And even that might not be enough to meet next school year’s projected $17 million budget deficit. The problem: TUSD has excess capacity to the tune of 13,000 students who, over the past 10 years, no longer attend classes there. By some estimates, 25 percent or more of students living within the TUSD boundaries don’t attend district schools. They go to charter schools, private schools or attend classes in neighboring districts under Arizona’s open enrollment program. Some are home schooled. The problem isn’t entirely unique to TUSD, the state’s second largest, but the magnitude is. Arizona’s largest district, Mesa Unified School District has lost about 10,000 students over the past 10 years. It too, is struggling to find solutions and for this year, at least succeeded in maintaining its enrollment numbers by renewing an empahsis on neighborhood elementary schools. Other Tucson-area school districts including Sunnyside, Flowing Wells, Catalina Foothills and Tanque Verde are stemming their declining student numbers through open enrollment by significantly targeting families living in TUSD. Arizona’s charter schools program has allowed for the development of more charter schools per capita than in any other state. Charter schools have become attractive alternatives for families who like the combination of accountability and targeted curriculum that appeals to different learning patterns. Arizona also has a generous private school tuition program that gives state income tax payers a $500 credit — double that for married couples filing jointly — for contributing to tuition funds.

Yes, there have been plenty of reasons over the past decade for families to take their children out of TUSD schools. The district has been working to give families fewers reasons recently but changing public perception takes time. And there’s still plenty of work to be done. Test scores are going up at many schools but the district’s dropout rate last year also went up. Unfortunately, TUSD officials don’t have the luxury of time to nuture their good deeds and see them flourish. Closing schools is about the most difficult task any school administrator can face. Families, especially those with young children, like their neighborhood elementary schools and fight to keep them. But smaller schools are not inherently cost-efficient. Nor do they allow for the delivery of the best wellrounded education. Larger schools can be better equipped and staffed to offer a variety of different programs to meet students’ needs. In Mesa, which focused on saving neighborhood schools, the vast majority of those elementary schools have enrollments approaching 700 to nearly 1,100 students. That’s half again or double what is typically found in TUSD and most other Tucson-area schools. But first things first. Schools need to be closed and it cannot be done piecemeal. That’s the old Chinese torture of death by a thousand cuts. Do what needs to be done as quickly as possible. It will be painful but less painful than dragging it out. Once that’s in place, TUSD officials say they are going to comb the budget looking for other efficiencies. That’s opportunity. At this time of adversity, TUSD also has a chance to innovate. There are stories out there of educational situations that when pushed to the brink, have been rescued and better met the needs of the students they serve.

InsideTucsonBusiness.com

DECEMBER 14,2012

OPINION WAKE UP TUCSON

I can see clearly now (but the rain’s not gone) First and foremost, I want to thank my radio co-host Joe Higgins. He is to be commended for his hard work to make this region the best it can be for small business. He has spent many hours away from family and business to make it happen. Sad to say the Tucson business community isn’t ready yet to join him. Some of you thought our column was totally going away. We appreciate all of the emails of support after the last column (Nov. 16). We also loved the hateful ones. Those came from all the right people. Since the election, people have asked me if I was disappointed in the results. Of course I was. I was also bewildered by the absolute atrocity known as Pima County Elections Department. At worst, there may be shenanigans. At best, it seemed like a group of stoners trying to put on an election: “Dude, where’s my vote?” After ruminating on it for a few weeks, there were some lessons to be learned. After all the debates, fundraisers, radio shows, columns, get togethers, rubberchicken lunch presentations and finally Election Day itself, a beautiful gift was bestowed upon me. Like St. Paul on the road to Damascus,

an amazing clarity has come upon me. I have learned something of the characters in the Pima County drama and who they really are. These four groups do not incorporate everyone but they CHRIS DeSIMONE highlight what happened in the 2012 election: • The Worker Bees are the people who really worked their tails off. A Worker Bee could be a candidate, a campaign worker or someone in business. They can belong to any political party. Newly elected Pima County Supervisor Ally Miller is a perfect example. She started knocking on doors 13 months ago. Her efforts paid off. In the primary she defeated Mike Hellon, a former state campaign manager for Ronald Reagan’s presidential campaign, and state Rep. Vic Williams even though their combined funding was about 10 times that of Miller’s. It’s the Worker Bees who make or break a campaign. And the best Worker Bees are those you never knew existed until the campaign started.

• A Remora. This is a fish that attaches itself to the underside of a shark and eats the scraps that are left behind. This describes those in the business community who blindly support the “powers that be” for short term gain despite the long-term detriment the entire business community must endure. Their names can be found on the Machine candidates’ donor lists. If it’s a developer, that person could be a hostage (see next group). • The Hostage is your classic development guy or gal. They know if they show up on a campaign finance report for a Republican, they’re toast. The Machine will make sure they never get anything done again in this town. Don’t hate these Hostages, they are just trying to eek out a living in an environment that is anti-business. Instead, pray for them. • The Invertebrates are among the biggest disappointments. These are people who said, “yeah, this place needs some major change.” These people are the like one who came up to me at a fundraiser with a check in hand, asking “Who do I give this to?” After directing him to a table, I watched as he made his move toward the table only to make a last-minute turn and walk out of the room, check still in hand,

out to the parking lot. It was as if I was watching George Costanza on an episode of “Seinfeld.” I know who you are now and I’ll never ask you to do a thing in the future. These classifications serve only as a guide to the characters who come to the surface at election time. There is a Tucson city election coming up less than 11 months from now, on Nov. 5, 2013. The Pima County Board of Supervisors is also probably going to drop its $200 millionplus bond-doggle — copyright that word — for economic development. So, what’s a small business owner to do? First, excel in your corner of the economy. Every customer who walks through the door is precious and you have to show them that. You have to separate yourself from the competition and not let up. It’s going to be tougher than ever on small business, but it can be done. If that fails, Marana and Pinal County aren’t that far away.

Contact Chris DeSimone at provenpartner@comcast.net. DeSimone co-hosts “Wake Up Tucson,” 6-8 a.m. weekdays on The Voice KVOI 1030-AM.

GUEST OPINION

‘Fiscal cliff ’ or not, tax reform is easier said than done As part of any “fiscal cliff ” bargain, Congress will probably take up comprehensive tax reform next year. At first, its benefits seem almost magical. Just scrap the loopholes that benefit special interests, and — presto! — we can ease burdens on the middle class, toss out tons of paperwork, and raise revenue for the government. Alas, Congress isn’t Hogwarts, and tax legislation isn’t sorcery. Reform is a worthy goal, but it will involve more political and economic pain than lawmakers would like to admit. A misunderstanding tends to warp discussions of the federal tax code. Because of billionaire Warren Buffett’s claim that he pays a lower tax rate than his secretary, there is a belief the rich pay little tax and working people carry the lion’s share of the load. Wrong. According to the nonpartisan Congressional Budget Office, the top one-fifth of households contributed about two-thirds of total federal taxes in 2009, the latest year for which data are available. This group paid an effective rate of 23.2 percent, while lower-income groups paid progressively lower rates, down to just one percent for the bottom one-fifth. Some argue that, as a matter of fairness, we should make the affluent pay an even

higher rate than they already do. Fine, but we can’t squeeze them for enough additional revenue to balance the budget. That’s where “loopholes” come in. By ending a JOHN J. PITNEY JR. number of deductions or credits, Congress would enable the government to collect more money, at least in principle. There’s just one problem: Every line in the tax code has its own constituency and rationale. For example, the mortgage-interest deduction costs the Treasury more than $80 billion a year, but it has succeeded at fostering home ownership, and few politicians would dare to cross the millions of taxpayers who use it. Likewise, curbing the deduction for charitable contributions would be a blow to churches and other non-profits. Go down the list of “loopholes,” and you will see a comparable story every time. Despite such obstacles, Congress did pass a 1986 law that eliminated numerous tax shelters while lowering rates and

simplifying the tax code. That measure proved that reform is possible, but its enactment hinged on circumstances that are hard to repeat. The first was an intellectual consensus that bridged ideological lines: Supporters of reform included U.S. Rep. Jack Kemp, R-N.Y., on the right and Sen. Bill Bradley, D-N.J., on the left. They agreed the tax code rewarded individuals and businesses for gaming the system rather than contributing to economic growth and job creation. Moreover, key leaders had unusually strong motives to move the bill. President Ronald Reagan had believed in tax reform ever since paying exorbitant rates at the peak of his movie career. Dan Rostenkowski, D-Ill., chairman of the tax-writing House Ways and Means Committee, wanted to prove he was a statesman, not just a Chicago hack. Bob Packwood, R-Ore., chairman of the Senate Finance Committee, initially undercut the reform effort but turned around after enduring brutal criticism from the press. The bill had a wild ride through Capitol Hill. At one point, House Republicans almost derailed it through a procedural maneuver, and it took personal lobbying by President Reagan to put it back on track. Conditions for passage are less favorable

today. Lobbyists have become adept at collective action to beat legislation, while political polarization has made it harder for Republicans and Democrats to join in passing anything at all. Why do so many lawmakers think they can enact a tax reform bill in 2013? One reason is that so few of them experienced how arduous the last one was. Of 435 lawmakers who will sit in the House next year, only 21 were serving in 1986. Those 21 do not include Speaker John Boehner, Minority Leader Nancy Pelosi, or any GOP member of the Ways and Means Committee. The 100-member Senate will have a somewhat larger fraction of 1986 veterans: 11 who were in the Senate at the time, 10 who were in the House. Majority leader Harry Reid and Minority leader Mitch McConnell were on Capitol Hill in 1986, but did not play major roles in the tax drama. Lawmakers who back tax reform should speak with those who went through the 1986 debate. Then they should fasten their seatbelts. It’s going to be a bumpy year.

John J. Pitney Jr. is the Roy P. Crocker professor of American politics at Claremont McKenna College, Claremont, Calif. He is coauthor of “American Government and Politics: Deliberation, Democracy, and Citizenship.”

22 DECEMBER 14, 2012

INSIDE TUCSON BUSINESS

OPINION ADVOCATING FOR BUSINESS

10 timeless principles and today’s applications citizens in our society need two things, in my opinion. First is a safety net to catch them before they fall into total despair. Second is a path toward upward mobility. MIKE VARNEY Education is at the heart of that path. So are the internal qualities of hard work and perseverance. Success and upward mobility are largely personal qualities. They aren’t sold anywhere. They aren’t gifted. They are not confiscated from others. They are earned. 4. You cannot lift the wage earner by pulling down the wage payer. Anyone want a Hostess Twinkie? Try to find one. Hostess has shut down its baking operations. A stubborn union actually decided it would rather see Hostess go out of business than accept a pay cut so the company could remain profitable. Be careful what you ask for. 5. You cannot help a poor person by destroying the rich. “Tax the rich” is a convenient bumper sticker slogan, but most wealthy people got to be that way by helping other people. Taxing them and tearing them down may earn a political merit badge, but what real purpose does it serve? 6. You cannot keep out of trouble by

Some common sense thinking is worth revisiting from time to time. Aesop’s fables are an example. Ben Franklin is another notable example of simple, irrefutable thinking about how to conduct one’s life. One of my favorite examples of common sense thinking is the “Ten Cannots” from William J. H. Boetcker, an American religious leader and influential public speaker in the first half of the 20th century. 1. You cannot bring about prosperity by discouraging thrift. Prosperity is an economic state that is characterized by jobs, a high standard of living and growth. No where in the recipe for prosperity can one find room for waste and careless accounting of one’s assets. A quick examination of the prosperous economies around the world (like Singapore) underscores that point. Leaders of both U.S. major political parties have vowed to improve our prosperity by identifying and eliminating waste in federal spending. Does anyone believe they have or ever will? 2. You cannot help small people by tearing down big people. Attacks on well-known political leaders, business leaders and celebrities sell tabloids and fuel the blogosphere. Many people experience an odd delight in the “get ’em” mentality. But at the end of the day, these attacks do nothing to improve the lives of average citizens like you and me. 3. You cannot strengthen the weak by weakening the strong. Less fortunate

spending more than your income. Does anyone really believe the federal government (and the governments of many states, counties and cities) can go on forever spending more than is generated in revenue? With an 8 percent approval rating and political polarization at historically high levels, the likelihood of Washington, D.C., getting its leadership act together seems remote. 7. You cannot further the brotherhood of mankind by inciting class hatred. When I was very young, I remember a wise old person in my life telling me to look around. “You don’t have to look too far to see people who have more than you do and people who have less than you do,” he said. That notion is true the world over. At the same time, no country affords its citizens more opportunity to determine their own destiny than the United States. Class warfare is a recipe for divisiveness and social unrest. 8. You cannot establish security on borrowed money. No further comment necessary. 9. You cannot build character and courage by taking any person’s initiative and independence. At the top of Abraham Maslow’s Hierarchy from his essay called A Theory of Human Motivation is a state of being called “self actualization.” It is the pinnacle of personal fulfillment. It is a state of being that people the world over strive to achieve. It is the story of penniless immi-

InsideTucsonBusiness.com

grants who build major business enterprises. It is the story of college kids tinkering with silicon and building computer companies. It is the story of the entrepreneur who takes an idea and grows it into a thriving business over 20 years. Initiative and independence are the twin engines of success. 10. You cannot help people permanently by doing for them what they could and should do for themselves. I used to coach ice hockey for kids. Some of the teams I coached were made up of really young skaters. We had a rule about lacing up skates: the coach doesn’t do it. The skater could do it or one of his parents could do it, but the coach was not going to lace 15 pairs of ice skates before every practice or game. Early in the year, the parents laced their kids’ skates. As the year went on, more and more kids laced their own skates instead of waiting for Mom or Dad to do it for them. I suspect Moms and Dads got smart and taught their little icemen how to lace skates for two reasons: Mom and Dad were tired of it and the skater actually could lace his own skates if he really tried. There are countless applications of this same principle in our society today.

Contact Mike Varney, president and CEO of the Tucson Metro Chamber, at mvarney@tucsonchamber.org or (520) 792-2250. His Advocating for Business column appears monthly in Inside Tucson Business.

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