Inside Tucson Business 12/28/2012

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2 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

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InsideTucsonBusiness.com

DECEMBER 28,2012

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NEWS Tucson unemployment rate drops to 6.6%

TOP STORY OF 2012

At long last, downtown Tucson is being revitalized

Downtown Tucson is looking up, pun intended. After what has been decades of neglect and decline, a renaissance is happening.

Structurally, construction cranes tower over downtown for the first time in decades.

Visually, the changes can been seen in streetscapes. Emotionally, there is a sense of excitement.

During the Great Recession, several downtown Tucson properties had become vacant, financially stressed, outdated, in disrepair or vandalized. Yet despite the gloomy downside, developers saw the potential upside. Under the right conditions, some revitalization projects made sense.

Many of those projects that had been in the planning and permitting process for years began to come to fruition in 2012. The Downtown Tucson Partnership estimates that over the past three years, more than $320 million in public and private investment has been made downtown.

From the private sector, creative makeovers have dominated. Several completed and in-progress mixed-use projects cover a mix of urban-style housing, edgy entertainment and casual dining, retail and professional services.

Among the revivals in housing are The Flats at Julian Drew, 128 S. Fifth Ave. Local developer Ross Rulney re-purposed the entire Julian Drew/Carriage House/Tiburon Apartments block for about $4 million that also included new retail and a fitness business.

In August, Sentinel Plaza, 795 W. Congress St., was opened for low-income seniors. The $27 million complex was built by Chicago-based Senior Housing Group as replacement housing for former residents of

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Armory Park Apartments, 211 S. Fifth Ave., which was acquired this month for about $3 million by local developers Peach Properties and Holualoa Arizona. They are renovating the neglected, 40-year-old building into contemporary, marketrate apartments.

Also under construction is Plaza Centro, at Congress Laying rail for the modern streetcar.

Street and Fourth place, the underground utilities upgraded Avenue, which is part of the boom to meet University of Ari- and the rail track down. There may be some zona student housing demands (see Item delays but streetcars are expected to start rolling next year.

3).

In addition, government invested $22 In the office sector downtown, Caylor Construction broke ground on a new $16 million in parking garage projects; $11 milmillion multi-use project at 1 E. Broadway. lion for the Cushing Street Bridge; $2.3 milWith business partner Art Wadlund, a va- lion to improve the Ronstadt Transit Center; cant parking lot will arise as a six-story tower and $950,000 for the Roy Place/Walgreens with commercial offices, 24 apartments and Building at the southeast corner of Stone street-level retail. Completion is set for late Avenue and Pennington Street.

Living, working, shopping, dining and 2013.

At the southeast corner of East Toole and subsisting in a downtown neighborhood North Stone avenues, Pima County is build- may not appeal to all but there are enough ing its new $75 million Courts Complex. The people who like and want that lifestyle to City of Tucson was to be a financial partner create niche business opportunities for embut dropped out due to a lack of funding. ployers, restaurateurs, retailers and other The seven-story complex also includes a urban-oriented entrepreneurs A major factor contributing to down1,200-space parking garage.

Certainly, downtown’s revitalization has town’s renaissance during 2012 included benefitted from millions of dollars of pub- UniSource Energy building and opening its lic sector investment in core infrastructure, $60 million corporate headquarters at 88 E. building façade and streetscape improve- Broadway that brought 400 employees into ments, and basic business-related needs. the nine-story building.

That, along with the synergies created The largest taxpayer-funded project is the $200 million modern streetcar to be known from the UA moving some facilities downas Sun Link that is attracting development- town and student housing projects are all related interest from the private sector along contributing to creating and maintaining the critical infrastructure necessary to susits route.

Most of the electrical infrastructure is in tain a vibrant downtown.

PUBLISHER THOMAS P. LEE tlee@azbiz.com

STAFF WRITER PATRICK MCNAMARA pmcnamara@azbiz.com

RESEARCHER JEANNE BENNETT list@azbiz.com

INSIDE SALES MANAGER MONICA AKYOL makyol@azbiz.com

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Otis Blank

At the end of each year, the staff of Inside Tucson Business looks back on the news events that took place to try to sort out what has longterm meaning for business from what was just a temporary side note. Here is our list of the top 20 most important things that happened in 2012.

Unemployment rates in Arizona have fallen to their lowest in four years with the Tucson rate dropping to 6.6 percent in November, according to the state’s Department of Administration.

It was the third consecutive monthly decline. Tucson’s unemployment rate was down from 7.1 percent in October and 7.6 percent in November 2011.

The state added 22,700 jobs in November.

Of those new jobs, 96 percent were in the private sector and most were in lower-paying positions such as retail, food service and administrative support.

The statewide unemployment rate for November was 7.8 percent.

State fails 15 airline scales at Tucson airport Fifteen of 29 scales used by airlines to weigh luggage at Tucson International Airport ticket counters failed surprise tests conducted Dec. 3 and 4 by the Arizona Department of Weights and Measures.

At least one scale used by each airline at the airport failed the inspection.

State-wide the department called the 72 percent compliance rate “substandard.” Violations included scales that were not calibrated correctly, tamper-proof seals or had other abnormal performance issues.

Additionally, the department issued 12 directives for airlines to comply with requirements to post notices of overweight bag charges.

The tests at TIA were: • Alaska Airlines — Its one scale failed because it was missing a tamper-proof security seal. Overweight charges were not posted.

• American Airlines — Two of seven scales failed for issues of faulty display readings, not being level and missing identification.

• Delta Air Lines — All six tested scales failed. Three were out of tolerance, two in favor of the airline and one in favor of the passenger, security seals were missing and identification requirements were not met. Overweight charges were not posted.

• Southwest Airlines — One of six scales tested failed for being unlicensed, missing security seals and identification.

• United Airlines — All four scales tested failed for being out of tolerance in favor of the passenger and did not show the actual weight.

Overweight charges were not posted.

• US Airways — One of five tested scales failed for being out of tolerance in favor of the passenger. Overweight charges were not posted.

EDITION INDEX

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

6 8 9 10 12 16 16

Briefs Finance Real Estate & Construction Biz Buzz Editorial Classifieds

17 18 19 20 20 23

4 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

2012 THE YEAR IN REVIEW Top 15 online stories at InsideTucsonBusiness.com OK, it’s one thing to rank the most meaningful business news stories of the year. But what is it people are reading?

Without editorial comment, here are the top news stories of the year in terms of the numbers of viewers who read them online at www.InsideTucsonBusiness.com: 15

Officials try to find ways to stop City Golf from losing $1 million a year.

14 An editorial that argued a group called Tucson Forward was misrepresenting Tucson about the Air Force’s plans to locate an F-35 training facility here.

A Sales Judo column by Sam Williams titled “Training a sales team — then paying them to quit.”

13

D&H Air joins forces with Ace Hardware in a non-traditional marketing effort.

12

Restaurant revival in downtown Tuc11 son pours more than $12.4 million into the economy.

10 A media column ranking the ratings of radio talk shows in the Tucson market, indicating that audiences were tuning out political shows.

Details of Hobby Lobby, SteinMart, and two other retailers and the major renovation of the northeast corner of East Broadway and Craycroft Road, the site of a Mervyn’s store that closed in 2008.

09

08 State regulatory officials and the FBI step in to the case of embezzlement in the property management division of Rathbun Realty.

07 A blog post about how the financial cliff impacts NASA moon probes.

06 A real estate report on how the market for housing is beginning to come back and that builders could be facing a shortage of as many as 15,000 lots.

The initial announcement of the retail renovation at Broadway and Craycroft (item No. 9).

05

04

Long delayed Curacao mega-store finally opens.

03

Wal-Mart moves forward on plans to open five new stores in the Tucson re-

gion.

02

Tucson nightclub Cactus Moon to close.

01

TV news anchor Martha Vazquez’ sad end to a long career.

20. American closes reservations center

American Airlines and Tucson have had a long relationship dating back to 1927 when its predecessor, Standard Air Lines initiated the first airline service to Tucson. Its Tucson workforce grew in 1991 when the airline opened an 83,000 square-foot state-of-the-art reservations center at 3350 E. Valencia Road. As technology changed, the need for phone reservation centers diminished and on Aug. 24, the Tucson center was closed, leaving American with just two. Although the center had about 700 employees, nearly all were offered transfers to other locations or given the opportunity to work from home.

The building didn’t remain on the market long. Freeport-McMoRan Copper & Gold purchased the 14.47-acre site for $5.15 million in October and is in the process of renovating the building to relocate about 100 administrative and technology jobs to Tucson from Safford.

19. Retail revival

Signs that the Tucson region’s retail market may finally be moving in a positive direction started sprouting in 2012 with the April opening of a Costco Wholesale as the first store in the Tucson Marketplace at The Bridges near Interstate 19 and Kino Boulevard, and announcements by Wal-Mart that it is planning several store openings throughout the region in the next couple of years. But no sign was more Sales clerk Stacy Yates at new SteinMart prominent than the redevelopment of the vacant and neglected retail property at the northeast corner of Broadway and Craycroft Road.

Now known as the Benenson Retail Center, the 7.4-acre site that last housed an 81,000 square-foot Mervyn’s store until it was closed in 2008, now houses a SteinMart that was opened in November and in early 2013 will see the arrivals of the market’s first Hobby Lobby as well as a Mattress Firm store, the Vitamin Shoppe and Broadway Smiles dentistry and orthodontics.

General contractor W.E. O’Neil Construction split the original building’s shell to accommodate SteinMart and Hobby Lobby and built a new 14,500 square-foot multi-tenant building on the site replacing a long-vacant dilapidated tire store that was razed.

Benenson Capital Partners, New York, a privately held real estate investment and development company spent $4.2 million on the transformation.

18. Resorts, hotels woes

Considering the financial impact of the tourism industry on Tucson’s economy, the region’s resorts are continuing to have a tough time recovering from the Great Recession. Numerous properties have fallen into bankruptcy the past three years but the biggest shocker of the year occurred in January when Bankruptcy Court Judge Eileen Hollowell approved plans for the Westin La Paloma Resort and Spa, 3800 E. Sunrise Drive, and a companion property, the Westin Hilton Head Island Resort in South Carolina, to emerge from Chapter 11 valuing them together at $92 million — less than 40 percent of the $240.5 million Tucson’s Transwest Resort Properties owed on the debt when they were put into bankruptcy protection Nov. 17, 2010.

The resorts’ new owners are Southwest Value Partners, a real estate investment company based in San Diego that was co-founded in 1990 by former Tucsonan Robert G. Sarver, who is now managing partner of the NBA Phoenix Suns and chairman and CEO of Western Alliance Bancorporation. The new owners are now in the midst of making $60 million in renovations to the two resort properties under a new 20-year agreement for them to remain Westin properties. Just last month, La Paloma, which had not undergone a total update since it opened in 1986, unveiled the first of its newly renovated rooms.

Meanwhile, the JW Marriott Starr Pass Resort and Spa, 3800 W. Starr Pass Blvd., is continuing to try to work through some legal issues involved in its receivership. This month, lender Metropolitan Life Insurance Co. took back ownership of the Hilton El Conquistador Golf and Tennis Resort, 10000 N. Oracle Road, Oro Valley, under a pre-arranged agreement with Ashford Hospitality Trust that had tried unsuccessfully for two years to sell it.

Another Transwest property in bankruptcy is Doubletree Hotel at Reid Park, 445 S. Alvernon Way, which is still going through court proceedings.

Lenders took back two other Transwest properties, La Posada Lodge and

Casitas, 5900 N. Oracle Road, and TownePlace Suites by Marriott Tucson, 405 W. Rudasill Road.

Overall, lodging properties in the Tucson region are looking to finish the year with occupancy rates up just 0.1 percent.

One part of the region that’s going against the negatives is around the University of Arizona campus where a 150-room Aloft Tucson University is expected to open at the end of March at 1900 E. Speedway. It was once a Four Points by Sheraton property. And officials anticipate announcing plans during the first quarter of 2013 for another hotel at the southeast corner of East Second Street and Tyndall Avenue across the street from the Marriott University Park Hotel.

17. F-35s fly to Luke

In August, the Air Force confirmed plans to put a pilot training facility for the new F-35 stealth fighters at Luke Air Force Base in Glendale, bypassing for now a proposal to put it at the Arizona Air National Guard’s facility at Tucson International Airport.

With the arrival of the 72 jets at Luke, will also come an estimated 1,000 permanent direct and indirect jobs and an economic impact of $17 million annually. Luke had always been the front-runner for the first award but Tucson had tried to mount an effort to get the Air Guard’s facility noticed.

Apparently, Air Force officials heard enough negative comments from a group called Tucson Forward that it wasn’t ready to pursue Tucson as a viable option this time around. But the Air Force is contemplating a second award around the end of 2014 and efforts have been launched to make sure supporters of the F-35 are heard the next time.

16. Elections mostly status quo

For as much media attention as the campaigns for the 2012 elections generated, the outcomes weren’t so surprising or unexpected.

In Tucson, city voters approved spending $100 million over the next five years to fix up roads. The approval came with just a 953-vote margin, just 0.7 percent of the 144,013 votes cast on the measure. It was a victory not only for fixing the roads but also for the city and Mayor Jonathan Rothschild who spearheaded a campaign that sought to restore voters’ trust in the city.

The balance of power on the Pima County Board of Supervisors remained unchanged at 3-2 Democratic as the four incumbents who sought re-election won. Ally Miller was elected to replace retiring Ann Day. Both are Republicans, though Miller sought to appeal to the Tea Party faction.

Statewide, Republicans still hold the majority in the Legislature, though they lost their super majority. In one of the most notable races in the entire state, Democrat David Bradley ousted Republican Frank Antenori from the state Senate.

As for ballot propositions, voters soundly rejected the idea of making permanent a 1 percent state sales tax and as a result, the state sales tax reverts back to 5.6 percent effective June 1, 2013. The one surprise among ballot measures was the rejection of a measure that would have increased the exemption of capital purchases made after Jan. 1 despite widespread support and no opposition.

Contributing to what seemed like endless campaigning in 2012 were the special elections held earlier in the year to replace U.S. Rep. Gabrielle Giffords, who stepped down in January to continue her recovery from being shot Jan. 8, 2011. Her former aide, Ron Barber won the election against Jesse Kelly, who ran against Giffords in 2010, and had beaten three others in a Republican primary. Despite initial indications that he only intended to fill the special term, Barner sought and won election in November to fill the seat for the next two years.

15. New City Manager

When Richard Miranda, former Tucson police chief and assistant city manager, was officially named City Manager in May, it created the kind of buzz that had not been heard from City Hall since the days when Joel Valdez had the job for 16 years, from 1975 to 1990. Fittingly, Miranda went to see Valdez, who continues recuperating from a stroke, and his family after being named the permanent city manager.

Miranda had been interium city manager for eight months after his former boss, Mike Letcher, quit and then was fired by the City Council, after a rather bizarre exchange which started with his announcing his resignation would take place in mid-2012 and then trying to pin blame on others for shortcomings in city government.

Miranda and new Mayor Jonathan Rothschild have teamed up to return accountability and trust to City Hall, through investigations that found Department of Transportation employees using city equipment and supplies to do side jobs for friends while on the clock to the city and uncovering

InsideTucsonBusiness.com

DECEMBER 28,2012

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2012 THE YEAR IN REVIEW irrogularities at the Tucson Convention Center. At the same time, Miranda has launched efforts to streamline bureaucracy, encourage economic development and in general, make City Hall more business friendly. On top of everything else, he’s a native Tucsonan.

14. Airport losses

When the year started Bonnie Allin, president and CEO of the Tucson Airport Authority, predicted airport traffic would grow by about 3 percent based on some positive signs from airlines at the end of last year. Now as the end of the year approaches, it appears Tucson International Airport passenger totals will finish 2012 down about 1.5 percent from 2011.

The biggest setback of the year was Frontier Airlines’ decision to discontinue service to Tucson in May. Two years ago, Frontier had been the leading carrier of passengers between Tucson and Denver but, faced with its own financial issues, the airline is trying to reinvent itself as it looks for a buyer.

Airlines also are getting more savvy in flight schedules. Reducing capacities on certain days of the week and certain times of the year.

With news that Southwest and Delta are both planning cutbacks in schedules at Tucson, 2013 doesn’t look as if it’s going to be a stellar year for growth either.

13. Visit Tucson changes

Brent DeRaad, 45, arrived in April to take the helm of the Metropolitan Tucson Convention and Visitors Bureau (MTCVB) following the retirement of Jonathan Walker, who stepped down after 18 years as CEO. DeRaad, who had been vice president of the Scottsdale Convention and Visitors Bureau, has reinvigorated the organization’s membership. In 2013, it plans to launch a rebranding effort under which the organization’s name will change to Visit Tucson.

Among other things, the organization also is looking to embark on a promotion to market Tucson as the home of the best Mexican food in the U.S. to try to capitalize on the growing trend of gastro-tourism.

But everything hasn’t gone entirely smoothly since DeRaad’s arrival.

Marana wouldn’t sign a marketing agreement to send a portion of its hotel bed taxes to the MTCVB so the organization’s board voted last month to make lodgings in the town ineligible for membership as of Jan. 1. Town officials said they couldn’t do the agreement because the town spends its bed tax money on a state trust land lease to meet open space requirements for the Ritz-Carlton Dove Mountain resort.

12. TREO’s new direction

Almost every year since its conception in 2005, the economic development agency Tucson Regional Economic Opportunities (TREO) has taken investors on a trip to another city to learn about best practices. Those cities have been Austin, Texas; Albuquerque; Huntsville, Ala.; Portland, Ore.; and this year, San Diego.

But something happened one night on this year’s trip at the bar at the Lodge at Torrey Pines when City Councilman Paul Cunningham, who later admitted he had too much to drink, made some sexually inappropriate comments to a couple of female city employees. He apologized and said he would take corrective action for his behavior.

But the most lasting impact of the events was the public outcry of government spending and the accountability of TREO. Tucson Mayor Jonathan Rothschild had already been questioning the contribution from the city, which was adding staffers for its own economic development efforts.

Marana stopped paying TREO in 2008. Besides Tucson, Oro Valley and Sahuarita were paying members.

TREO announced it would continue its evolution toward more private funding by no longer requiring local municipalities to pay to participate in its efforts. Pima County’s Board of Supervisors however, agreed in November to contribute $500,000 to TREO, which accounts for about 22 percent of the agency’s budget. Pima County Administrator Chuck Huckelberry said the contribution will come with accountability measures. Unlike municipalities, which have territorial interests in TREO’s efforts, Pima County does not, says Huckelberry who says the county wants to support economic development throughout the region, regardless of where it happens.

11. Hotel Arizona closes

Counter to what’s happened elsewhere in downtown, the Tucson Convention Center and the area around it has become the blackhole of downtown. In April, HSL Properties shuttered the struggling Hotel Arizona, 181 W. Broadway, the only hotel adjacent to the TCC and likely the only one for some time after the city’s failed effort in 2011 to build a 500-room hotel.

The 308-room, 39-year-old Hotel Arizona is in need of refurbishing but

city officials have balked at HSL’s proposals. The latest public offer would have had HSL spending $25 million to $35 million over a two-year period to upgrade the hotel and affiliate it with a national brand in exchange for the city allowing the company to keep the hotel’s sales and bed tax revenues to repay a loan. During the time of the renovations, the hotel would be deeded to the city.

City officials say they’ve continued to have some discussions with Humberto S. Lopez, president of HSL Properties. In the meantime, Lopez says he’s not interested in even attempting to reopen the hotel without an agreement. At least he’s not losing money trying to operate it.

10. Bottom up for real estate

It will be official in just a few days: 2012 will be the definitive turning point for Southern Arizona’s real estate market. Benchmarks now show the industry in the Tucson region hit bottom in 2011 and has begun to improve.

Since the beginning of the year, average home sales prices are up 13 percent. Median sales prices are 20 percent higher. New home permits have climbed to 1,903 through the first 11 months of the year, compared with 1,438 for all of 2011. Every jurisdiction within the region has issued at least 10 percent more permits than a year ago. And it’s now likely builders will pull more than 2,000 permits in 2012.

Existing home sales are within 185 of last year’s 12,791 closings and foreclosure notices should end 2012 slightly below last year’s mark of 9,433. Unless there is an expected shock to the market, the worst is over.

9. Fore! Not so much

Both private and public golf courses are feeling the impact of fewer people playing golf these days.

On Tucson’s east side, the struggling Forty-Niner Country Club, 12000 E. Tanque Verde Road, was on the verge of closure in June after Tucson Water cut off service because owner IRI Arizona had not paid $800,000 owed for service and installation of a pipeline to deliver reclaimed water.

Resident Ronald McKenzie bought the course in June, made amends with Tucson Water and is paying down the debt. The water is back on and play has resumed.

Similarly, a partnership including restaurateur Bob McMahon and Green Valley developer David Williamson rescued San Ignacio Golf Club, 4201 S. Camino Del Sol, Green Valley; and Canoa Hillls, 1401 W. Calle Urbano, Green Valley, in October after both courses had been closed when IRI Golf Group didn’t pay its water bills and the water was shut off.

The two Green Valley courses reopened this month.

As for public courses, Tucson City Golf, a division of the Parks and Recreation Department, continues to lose money that this year amounted to nearly $7 million of subsidies coming from other city sources. Intended to be an enterprise fund that pays its own, the city’s golf losses date back to 2002.

Leaders are considering turning operations of the city’s five golf courses over to an outside vendor but in the meantime, have said they intend to close the two poorest performing courses: El Rio, 1400 W. Speedway, and Fred Enke, 8251 E. Irvington Road.

8. New arrivals

Tucson Regional Economic Opportunities’ reorganization (item No. 12) didn’t stop the economic development agency being in the forefront in announcing promising relocations that will add jobs.

OptumRx, a subsidiary of UnitedHealth Group Inc., announced in March it is creating at least 400 jobs at a new customer service facility in the University of Arizona Science and Technology Park. Hiring is already underway and the company expects to be fully staffed a year from now.

Accelr8 Technology Corporation, a firm that develops instruments used for the detection of pathogenic microorganisms, announced in August that it would move its corporate headquarters from Denver to the Pima County Herbert K. Abrams Public Health Center, 3950 S. Country Club Road. The company says it plans to fill 65 positions in its first three years here and potentially grow that to more than 200. Pima County is spending $1.4 million to build out the space, which should be finished early in 2013.

Integrated Technologies Group, which designs and produces custommade machines for use in high-tech applications, is moving into a 25,000 square-foot facility at 3590 E. Columbia St., with about 35 new jobs to start

This Week’s

Good News Job creators: Restaurants One of the brightest spots in Arizona retail has been restaurant sales. In his annual economic outlook this month, University of Arizona economist Marshall Vest noted restaurant and bar sales in Tucson were up 7.2 percent year-over-year in October, compared with overall retail being up 1.8 percent.

The National Restaurant Association says its industry is continuing to be a leading job creator, currently employing 260,200 people in Arizona, which is about 11 percent of the state’s workforce. That group projects that number will grow by 16.4 percent by 2022.

When all is said and done for 2012, the industry will have taken in $10 billion in Arizona sales this year.

The Tucson

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

Coyotes profitable not playing The Phoenix Coyotes, the perennial money-losing National Hockey League franchise that plays at Jobing.com Arena in Glendale, might actually be profitable this year for a change — provided the team doesn’t play any games.

Phoenix Business Journal reporter Mike Sunnucks reports the team is avoiding millions in payroll during the NHL lockout and at the same time, could be in line for money to manage its arena if a sale finally goes through.

The team has been losing $20 million to $30 million annually.

Long to leave When Wendell Long steps down as CEO of Pascua Yaqui Gaming Enterprises, operators of Sol Casinos, the Tucson region will most likely lose one of its most positive personalities.

Long, who will have been in his post for more than six years when he leaves no later than early June, has been an example of a leader involved in making changes for the good at the Tucson Metro Chamber, Tucson Regional Economic Opportunities and the Metropolitan Tucson Convention and Visitors Bureau.

The odds of Long staying in the Tucson region are, well, long. At the risk of trying to inject too many gambling expressions, Long hopes to parlay his 30 years of gaming experience, possibly working for another tribal casino. But it won’t be in Tucson because he has a non-compete clause in his contract.

6 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

2012 THE YEAR IN REVIEW

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

FORECLOSURE NOTICES Ross Intertraders LLC 4844 N. Davis Ave. 85705 Tax parcel: 101-15-1030A Original Principal: $275,000.00 Beneficiary: KOBA LLC, Paradise Valley Auction time and date: 11:30 a.m. March 7, 2013 Trustee: Western Regional Foreclosures, 1 W. Deer Valley Road, Suite 103, Phoenix Hillcrest LLC 711 E. Lester St. 85719 Tax parcel: 123-14-126D2 Original Principal: $100,000.00 Beneficiary: J.B. and M.J. Cobb Trust (60%) and D.A. and K.U. Hurlburt Trust (40%) Auction time and date: 10 a.m. March 12, 2013 Trustee: Charles H. Whitehall, 110 S. Church Ave., Suite 4398 Industrial Development Authority of County of Pima, Pima County IDA 473 E. Cactus Mountain Drive, Vail 85641 Tax parcel: 305-24-68202 Original Principal: $130,266.00 Beneficiary: CitiMortgage Inc., O’Fallon, Mo. Auction time and date: 10 a.m. March 20, 2013 Trustee: David W. Cowles, Tiffany & Bosco, 2525 E. Camelback Road, Suite 300, Phoenix

LIENS Federal tax liens Golden Dragon Restaurant and Nu Huynh, 6433 N. Oracle road. Amount owed: $7,719.18.

Olanik Construction Co. Inc. and 401K Plan Account Under Tax Equity and Fiscal Responsibility Act, 2900 E. Broadway, Suite 116. Amount owed: $7,966.81.

China Vic Chinese Restaurant and Hsueh Yung Yeh, 190 W. Continental Road, Suite 216, Green Valley. Amount owed: $10,774.32.

Brawley’s Restaurant and Ricky Ellison, 6367 E. Broadway. Amount owed: $19,859.60.

Silva Concrete & Construction LLC and Manuel O. Silva, 6035 S. Gunsight Lane. Amount owed: $18,552.82.

Fred J. White DDS PC, 3822 E. Fourth St. Amount owed: $2,356.73.

Access Advertising Systems LLC and Anthony Venuti, 105 E. Grant Road. Amount owed: $13,909.85.

Lewis Electric and Anita Lewis, 850 N. Silverbell Road, Suite 114-327. Amount owed: $16,367.52.

Physicians Management Strategies Inc., 5445 N. Kolb Road. Amounts owed: $4,241.05 and $1,812.05.

One Call Cleaning LLC and Nancy A. Race, 9661 E. Stonehaven Way. Amount owed: $29,052.71.

JVS Complete Landscaping and Jorge A. Villagrana, 750 E. Irvington Road, Apt. 1004. Amount owed: $16,496.48.

Take It For Granted Fundraising Counsel Inc., 12103 N. Portico Place, Oro Valley. Amount owed: $18,485.81.

Affordable Septic Systems & Excavation Inc., 8541 E. Colette St. Amount owed: $7,630.39.

Nordbrock Family Limited Partnership, 6642 E. Calle De San Albierto. Amount owed: $645,067.15.

State liens (Liens of $1,000 or more filed by the Arizona Department of Revenue or Arizona Department of Economic Security.)

Drive Today Auto Solutions, 5200 E. Speedway. Amount owed: $26,797.27.

Release of federal liens Taylor-Heddings Arizona Pizza Co. Inc., 4955 N. Sabino Canyon Road.

Columbus Glass & Screen LLC, 1226 N. Columbus Blvd.

Laurel Creek Homes LLC and Bryon Blandin, 2935 E. Benson Highway Sabino Canyon Gateway LLC and Vincent J. D’Elia, 7225 E. Camino De Cima Rogo’s Finishing Touch Inc., 3535 S. Palo Verde Road Best Radiator & Auto Service and Jesse Escarecga, 2101 S. Fourth Ave., South Tucson Aria International Inc., 9040 S. Rita Road, Suite 236 IRI Sabino Springs Golf Course LLC, 9777 E. Sabino Greens Drive Cake Gourmet LLC and Christie O’Rourke, 6781 N. Thornydale Road, Suite 22

the new year.

American Tire Distributors has finished building a 125,000 square-foot distribution center on Palo Verde Road, south of Valencia Road, where it is employing 30 people.

Aris Integration LLC, manufacturer of a panelized-wall system, will open a production plant in the region by late 2013 employing 600 people.

7. Rosemont Mine progress

It has taken far longer than originally envisioned but Rosemont Copper continues to make progress, albeit slowly, toward opening a copper mine on the eastern slopes of the Santa Rita Mountains southeast of Tucson. The Arizona Department of Environmental Quality this year issued a draft air quality permit for the mine but the Coronado National Forest announced in November that plans to release the Final Environmental Impact Statement for public review by the end of this year would be delayed, citing the need for more consultation with various agencies.

The environmental impact statement most likely will be issued early in 2013 and Rosemont officials remain optimistic they can begin construction on the mine by summer.

An economic impact study done by Arizona State University’s L. William Seidman Research Institute in the W.P. Carey School of Business, estimates the mine will have an economic impact of $701 million a year to Southern Arizona counties creating 2,100 direct and indirect jobs in the region.

6. City Hall gets business-friendly

Improvements to public policy can take a significantly long time. Not to mention, significant leadership.

As soon as he took office in December 2011, Tucson Mayor Jonathan Rothschild was laser-focused on a top priority: to fix the city’s cumbersome, inconsistent, confusing and self-contradictory Land Use Code. He knew that simplifying the regulation would make the city more business friendly.

Rothschild inherited a review process that had started three years earlier.

“When I ran for office, I said that’s Chandler (left) and Solis just crazy, let’s get it done,” Rothschild told a large gathering of business folks in January. In October, an updated code was finally approved by the city council.

Another pro-business issue on Rothschild’s radar was getting the city’s Development Services to process building permits faster. He set the bar at 20 days or less.

With Maricela Solis on board as business advocate, the city formalized its economic development function.

There was one significant setback. At the beginning of December Debbie Chandler resigned after less than a year as the economic development manager. A reason hasn’t been publicly announced but speculation has it she was not being included in the loop on some matters. Whether that becomes an issue remains to be seen.

As the year progressed, city leaders also put together a package of 21 incentives for business development. The goal being to help create jobs in the private sector.

5. Property values plummet $3B

Pima County property values dropped by a total $3.3 billion in a year according to valuation notices issued in February by the Pima County Assessor’s Office.

Most of the reductions went to home owners and owners of vacant land. At the other end of the scale, owners of lodgings saw their property valuations go up 17 percent and restaurants were up 13 percent.

Homeowner’s reductions were based on the misfortune of others. The sale of 15,000 foreclosures over the previous two years were a part of the calculations used by the Assessor’s office that sent average valuations down by 5.6 percent.

Pima County’s full cash property values totaled $59.7 billion and the reduction amounted to a 5.2 percent drop.

4. Postmark canceled

On Dec. 28, 2011, the U.S. Postal Service said it was reviewing plans to shut down numerous mail sorting facilities, including the one at 1501 S. Cherrybell Stravenue. In May, the Postal Service confirmed plans to include Tucson’s only mail sorting facility among 140 to be shut down.

The Tucson facility is scheduled to close by the end of February. All mail — even if it’s destined to go from one Tucson address to another Tucson address — will be trucked to Phoenix and returned for delivery. It’s part of a larger Postal Service plan that will increase delivery times.

The consolidation will reduce the size of the Postal Service workforce by approximately 13,000 employees and when fully implemented, will generate cost reductions of approximately $1.2 billion annually, according to officials. Postal Service officials said 147 jobs would be affected by the Tucson closure but that those employees are being offered positions elsewhere within the system.

At a news conference to try to rally opposition to the closure, U.S. Rep. Raúl Grijalva, D-Ariz., said the closure would leave a $14 million void in the Tucson economy.

3. UA beds boom

Two hundred beds here, 750 beds there and like wildflowers after a spring rain, off-campus student housing is about to burst into full bloom.

By the time classes begin at the University of Arizona next August, about 3,000 campus-area beds will have been added to the market by private Campus-area housing developers.

This year’s jewel was The District on Fifth, a 756-bed, $67 million pedestrian-to-campus project at 550 N. Fifth Ave. The luxury student housing complex opened before the start of this school year at full capacity.

On a 22-acre site at 1000 E. 22nd St., The Retreat also opened in August with 774 beds in 183 residential units. The cottage-style student housing complex included a 12,000 square-foot clubhouse.

By next August, Campus Acquisitions plans to open the first of its two upscale, high-rise towers just west of campus near East Speedway and Tyndall Avenue. The $25 million, 14-story project known as Level will house 550 students in 176 units. Phase 2 is a 13-story tower that will include ground-floor retail space.

Downtown at a project called Plaza Centro, about 425 beds are under construction in two buildings at Congress Street and Fourth Avenue. The project will be completed by summer and also contain retail commercial space. The complex is under the direction of local developer Jim Campbell.

Meanwhile back on campus, two new residence halls with 850 beds will be ready for students by fall.

2. Fixing roads

Despite an annual budget of more than $20 million for street maintenance and repairs, more than 25 percent of major roadways and some 55 percent of residential streets were considered to have failed or be in poor condition, according to the city’s Department of Transportation.

How did things get so bad?

The favorite target was the Legislature, blamed for sweeping money from special funds under its jurisdiction to fix the state’s own budget shortfalls. When it came to roads, critics cited the loss of Highway User Revenue Funds (HURF) that comes primarily from gas taxes.

But that argument didn’t hold water under a closer look.

More accurate than claims that the Legislature “swept” HURF funds, lawmakers simply changed the funding formula that for years favored road funding over other areas such as the Department of Public Safety.

“The city is absolutely culpable for the condition of the roads because we’ve let them go to hell,” City Councilmember Steve Kozachik commented during the crisis, saying the city hasn’t put enough money into maintenance to prevent roads from falling into the state of disrepair that exists today.

It made little difference as to where to place blame, as noted in Item 16, city resident voted in November to raise their property taxes to bond for $100 million in street improvements. As part of its efforts to restore trust in City Hall, officials insist that all but 1 percent of the $100 million will go directly to fixing the roads.

InsideTucsonBusiness.com

DECEMBER 28,2012

7

TRAVEL

Albuquerque, Minneapolis flights to be cut in 2013

By David Hatfield Inside Tucson Business 2013 hasn’t started but already airlines have decided to erase two of the 15 non-stop destinations passengers can reach from Tucson International Airport — one for part of the year and the other permanently.

June 1 will be the last day Southwest Airlines flies between Tucson and Albuquerque.

That’s also the last day Delta Air Lines will fly between Tucson and Minneapolis-St. Paul, though it plans to resume the flights on a seasonal basis again effective Oct. 1. This year, Delta had suspended the Tucson-Minneapolis flights for the month of September.

In addition to these two cuts, Southwest is trimming its summer schedule eliminating one of four daily round-trip flights to Los Angeles International Airport and one of five daily flights to Las Vegas.

Dick Gruentzel, director of finance and administration for the Tucson Airport Authority (TAA), said the reasons behind the cuts are different between the two airlines but said they are the kinds of decisions affecting lots of airports, not just Tucson.

In the case of Southwest, the airline is deep in the throes of completing its merger with AirTran, an airline that mainly operated in the Southeast U.S. As part of combining the two airlines, Southwest is getting rid of 88 Boeing 717s it acquired in the AirTran merger but is not replacing them with additional aircraft.

Southwest, which is noted for the efficiencies of flying only one type of aircraft, the Boeing 737, found that it was costing too much to fly the 717s.

As a result, Southwest is combining the route structures of two airlines essentially using the fleet it had before the merger took place. Something had to give. The first to go are unprofitable flights.

Gruentzel said it was difficult for Southwest to justify the Albuquerque flights, which was the airline’s poorest performing route

TUCSON INTERNATIONAL AIRPORT 2012 PASSENGER STATISTICS Tucson International Airport passenger traffic for November declined 6.3% to 316,320 from 296,30 in November 2011.

Available seat capacity was down 11.5% to an average of 5,693 outbound per day from 6,431 in November 2011.

Through 11 months of 2012, passenger totals are down 1.2% from 2011. This chart shows each airlines’ passenger totals and market share so far for 2012 compared to the first 11 months of 2011.

Airline

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

Non-stop destinations

Southwest

1,152,497

34.8%

Share

1,125,467 33.5%

+27,030

+2.4%

770,293 23.0%

+6,105

+0.8%

457,923 13.6%

+20,714

+4.5%

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

American

776,398

23.4%

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

United (Continental)

478,637

14.4%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways

380,835

11.5%

397,710 11.9%

-16,875

-4.2%

364,580

11.0%

366,911 10.9%

-2,331

-0.6%

Phoenix

Delta

Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska

107,114

3.2%

97,481

2.9%

+9,633

+9.9%

53,796

1.6%

139,543

4.2%

-85,747

-61.4%

-41,471

-1.2%

Seattle

Frontier

Discontinued service as of May 18

Total

3,313,857

3,335,328

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

from Tucson. For the 12 months ended July 2012, average load factor — the number of seats filled — was 61.2 percent.

“That is just unsatisfactory when airlines these days expect to fly planes that are at least 85, 86, or 87 percent full,” Gruentzel said.

When Southwest initially started flying from Tucson to Albuquerque in June 1999, it opened up the airline’s first east-bound connecting flights. Up until that time, all

Southwest flights from Tucson went either to cities in California or Las Vegas.

Since then, Southwest has begun flying to Chicago Midway and Denver so, as a practical matter, elimination of the Albuquerque flights shouldn’t change connectivity to other destinations. And unlike previous years, Southwest is planning to maintain two flights a day to both Chicago and Denver through the summer.

Tucson isn’t alone in losing Southwest flights to Albuquerque. The airline has been eliminating other flights there as a result of the end of federal legislation that restricted flights to Southwest’s home airport, Dallas Love Field.

The Wright Amendment, passed in 1979 as part of the Federal Aviation Administration’s plan to encourage expansion of operations at the new Dallas-Fort Worth International Airport, restricted most airline flights at Love Field to destinations within Texas or a state bordering Texas. Any airline that wanted to fly to a destination farther away was required to use a small plane with a capacity for no more than 56 passengers.

The amendment was repealed in 2006 with a planned phase-out that will eliminate it entirely in 2014.

As for Delta’s plans to discontinue flights to Minneapolis-St. Paul, Gruentzel said that while the airline had satisfactory load factors averaging at 86 percent of seats filled, the problem was “yield.” In order to fill those seats, tickets were priced so low the route wasn’t as profitable as other routes where it can make more money.

The elimination of the Delta flights over the summer will be more problematic than losing the Albuquerque flights. The Minneapolis-St. Paul flights provide the only onestop connections to eight smaller airports in the upper Midwest: Bemidji, Brainerd, Chisholm-Hibbing and Duluth, Minn.; Grand Forks, N.D.; Lansing and Saginaw-Bay City, Mich.; and Wausau, Wis. But to the Twin Cities themselves, TAA officials note that every airline at Tucson International Airport — Alaska, American, Delta, Southwest, United and US Airways — offers one-stop connecting flights.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Business Travel appears the fourth week of each month.

What happens to Tucson in American-US Airways merger?

By David Hatfield Inside Tucson Business Talk of a merger between US Airways and bankrupt American Airlines moved forward this month with an official offer and negotiations that, according to reports, are intended to result in an agreement by Jan. 9 when the board of directors of American’s parent AMR Corp. are scheduled to meet.

Negotiations center on how the two airlines would combine their workforces, including seniority ranks of pilots and other unionized personnel, and departments.

To avoid antitrust issues, nothing is being said about how the two carriers might combine their route structures.

For Tucson, that’s big. As the second and fourth largest airlines at Tucson Interna-

tional Airport, their combined total number of passengers through November this year surpasses the airport’s busiest airline, Southwest by 4,736.

The most pertinent question for Tucson is whether the combined carrier would follow US Airways’ scheduling model of funneling all passengers through its hub at Phoenix Sky Harbor International Airport.

Virtually nobobdy flies just from Tucson to Phoenix and no other airline connects the two, even though every airline at Tucson International also serves Sky Harbor.

One indicator that suggests a de-emphasis on the Sky Harbor connection is that even without the merger, US Airways has cut back on the route. Available seat capacity is down 21 percent this year from 2011.

Despite being in bankruptcy, American has maintained its seat capacity and grown its passenger numbers at Tucson this year.

American is the airport’s second busiest airline, carrying 23.4 percent of passengers behind Southwest, which has accounted for 34.8 percent. US Airways is fourth in market share, with 11.5 percent of passengers, behind the combined United and Continental airlines at 14.4 percent.

Experts agree that some hubs would be downgraded under a merger. US Airways has three major hubs, at Philadelphia and Charlotte, N.C. as well as Phoenix. American’s hubs are at Dallas-Fort Worth, Chicago O’Hare, Los Angeles, New York Kennedy and Miami, Fla. Sky Harbor and Philadelphia are seen as

the two that could be in the most jeopardy, in favor of routing passengers through LAX and New York, respectively.

A reduction at Sky Harbor, currently also a major airport for Southwest, would reduce the low-cost competition there and in a back-handed way, help Tucson International Airport which is losing air service because of its proximity to Phoenix.

It’s also noteworthy that although US Airways is leading the takeover effort, officials of the airline already have said the name of the combined carrier would be American and its headquarters would be in Fort Worth, Texas, not Tempe. Also, the frequent flyer program would be under American’s Oneworld Alliance, not the Star Alliance in which US Airways is currently a member.

8 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

PROFILE

By Lisa K. Harris Inside Tucson Business Everyone has a story, the saying goes.

Oro Valley-based Western National Park Association has 66 of them and is eager to share each tale.

Working in conjunction with the National Park Service, the non-profit operates bookstores in 66 park units in 12 western states from Kansas to Montana. An education organization, WNPA “engages people with stories of our parks resources,” says Executive Director Jim Cook.

And what stories they are — African Americans experiencing freedom after the Civil War at Kansas’ Nicodemus National Historic Site; Lakota and Cheyenne warriors defending their way of life at Montana’s Little Bighorn Battlefield National Monument; and seagull chicks begging for food in jammed packed rookeries at California’s Channel Island National Park.

Closer to home, WNPA’s bookstores tell visitors about what life was like in the cliff dwellings of Flagstaff ’s Walnut Canyon National Monument, Father Kino establishing a mission at Tumacacori National Historic Park, and how plants and animals adapt to the desert at Tucson’s Saguaro National Park.

Overall, WNPA offers 600 educational products through its bookstores and online, including publishing 175 of its own books. Each park’s story is different and the bookstores within each partner park are tailored to fit its interpretative message.

“The bulk of what we sell are books, books about the park and the natural and cultural elements of the park. But we also offer other products as well,” Cook said.

The bookstores sell plush toys representing park plants and animals, puzzles, games, and in some parks Native American-made rugs and pottery.

“Our merchandise is all mission related,” Cook said.

Revenues return to the park by way of a revenue sharing model.

“Each park is important, and the parks that generate more resources share with smaller

Jim Cook, Western National Park Association

Oro Valley’s Western National Park store has stories to tell

BIZ FACTS

Western National Park Association Western National Park Association, National Park Store.

parks that see fewer visitors,” Cook said.

Western National Park Association supports all the free materials which parks hand out to visitors: maps, event notices, interpretive brochures, and newsletters.

The association supports park programming such as the Junior Ranger Program where kids and teachers explore parks both in the classroom and on-site.

The WNPA also supports research that takes place within parks. For example, the association donated revenues for studies which seek to understand more about saguaro cacti and the extent of invasive buffelgrass in Saguaro National Park. WNPA funds have helped preserve centuries-old adobe walls of Tumacacori National Historic Park’s missions and convents.

In 2011, WNPA contributed $4.3 million in cash and in-kind aid to parks, and since its origination, has given $55 million.

Western National Park Association began in 1938, originally as the Southwest Monuments Association. Its purpose, like its mission today, was to tell the story of parks and monuments.

Initially tasked with communicating information about eight park units in Arizona and New Mexico, over time more parks in more states were added and the organization became the WNPA in 2002.

12880 N. Vistoso Village Drive, Oro Valley www.wnpa.org (520) 622-1999 (520) 622-6014 (store) Store hours: 9:30 a.m.-5 p.m. Mondays through Saturdays

Staff members at individual parks wear dual hats, particularly at smaller parks, according to Cook. They are in charge of the store, selling and offering insights into books and other merchandise, as well as serving as the face of the park, the person who greets visitors and answers questions such as directing visitors to trailheads, campsites, area hotels and other nearby destinations.

As a non-government organization, WNPA aids the National Park Service in areas the government entity cannot — selling, or trading, to be exact. Its Hubble Trading Post outside Ganado on the Navajo Nation in the northeastern corner of Arizona. The mercantile continues to sell groceries, grain, hardware, and horse tack, as well as Native American rug, pottery, and silver, much as it did when John Hubble and his family opened the store in 1876.

Park of WNPA’s mission is to make parks accessible but not everyone can visit a park, so WNPA brings pieces of the parks to its Oro Valley flagship National Park store.

Each month the WNPA features artists, writers, and scientists at book signings, art gallery shows and lectures.

Offerings are as diverse as the parks they

represent Upcoming events include a represent. turquoise jewelry show on Jan. 5, Hubbell Trading Post show with Navajo rugs and lectures Jan. 19, Western art show on Jan. 26 and Mata Ortiz pottery on Feb. 1.

The association also coordinates field trips to nearby parks. One recent trip was to Cochise Stronghold in the Dragoon Mountain southeast of Benson and the Butterfield Stage Station with historian Jack Lasseter. In 2013, WNPA will celebrate its 75th anniversary and actor and conservationist Ted Danson will help commemorate the milestone at an event on March 9.

Cook believes WNPA plays an important role in the future of our national parks.

“We help make parks relevant by telling unique and fascinating stories to visitors and to people who many never have visited a park,” he said.

By doing so, WNPA assists the National Park Service in protecting and conserving our national heritage.

InsideTucsonBusiness.com

DECEMBER 28,2012

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10 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

MEDIA

An ownership question ... and a few good others

By David Hatfield Inside Tucson Business Over the course of a year, I get questions about media matters. I figure if one person wants to know about something maybe others do too. So here’s a sampling, starting with one I just received last week.

Q. Your Dec. 14 column mentions the Gannett Co. having to quickly divest itself of KOLD because it already owned the Tucson Citizen got me wondering, are there still laws that prohibit cross-ownership of newspapers and broadcast media in the same market?

A. Technically yes, but as a practical matter, not so much. And the Federal Communications Commission appears to be working toward eliminating the restriction. This month, FCC was still seeking public comments (due by Dec. 26) on the matter. The biggest issue is whether relaxation of the rule will have an impact on minority ownership of media outlets. Otherwise, there seems to be little opposition to the idea and it could get approved by the end of January.

It’s a thought-provoking proposition, however, to realize the ownership clout Gannett would have had in Arizona if it had been allowed to keep both KOLD and the Citizen. Even with the Citizen’s demise in 2009, it still owns half of the company that

ern dance and the xylophone. In the highly unlikely event that these efforts do not prove fruitful, I intend to return to radio.” She is returning with a new syndicator and her show will be back on the Truth KQTH 104.1-FM starting Jan. 22 replacing Neal Boortz, who previously announced he is retiring. In the meantime, Ryan McCreddon, program director at the Truth, says the station is testing out Rusty Humphries in the afternoons. This month Humphries moved to Phoenix, where he now originates his show.

Q. Is there any chance progressive talk radio will come back to Tucson?

A. There’s always a chance but the way things are now, it’s not likely. Given it’s track record, another station would have to be in pretty dire straits to consider it. For whatever reason, progressive talk radio has trouble generating ratings. Even in San Francisco and Portland, Ore., it doesn’t work well. Two stations in San Francisco that once prominently featured talk shows with a liberal slant are mixing in hosts with other points of view. The day after Election Day last month, the progressive talk station in Portland dropped the format in favor of all-sports and its ratings have climbed by 40 percent.

Q. Separately, two of my news junkie friends asked: Is another radio station in Tucson going to pick up the CBS radio af-

publishes the Arizona Daily Star. In Phoenix, it owns both the NBC affiliate KPNX and the Arizona Republic under a waiver granted by the FCC, not to mention KNAZ, the NBC affiliate in Flagstaff, which is really nothing more than a repeater for KPNX. Q. I know this is getting old but will DirecTV get the Pac-12 Network?

A. Apparently, DirecTV is not feeling pressure from its customers to add it — at least not under the same terms and conditions accepted by Cox, Comcast, other cable companies and Dish Network. In its latest message to subscribers, DirecTV says the Pac 12 either needs to agree to a lower price to make it affordable to all of its customers on a basic tier or agree to let the satellite company sell it as a separate package or on a pay-per-view basis.

It’s worth noting however, DirecTV apparently did feel the pressure from Los Angeles Lakers’ fans and gave in to a deal to carry that NBA team’s games for a deal that reportedly will cost more than four times per subscriber. And it’s doing so on a basic tier in the L.A. area.

Q. What happened to Laura Ingraham?

A. After nine years, Ingraham quit her conservative talk radio show when her contract with her syndicator ended Nov. 26. At the time she said, “After much thought and reflection, I have decided to pursue my first loves — mod-

filiation now that the former Jolt is no longer carrying its news broadcasts?

A. An informal check suggests the answer is no. The most likely suspects would be another news-talk station but Clear Channel’s KNST 97.1-FM/790-AM already has Fox and is happy with it; Journal Broadcast Group’s the Truth KQTH 104.1-FM is happy with ABC (the same network of its sister TV station KGUN 9); and Good News Communications’ KVOI 1030-AM is tied in with the Salem Radio Network (SRN).

It turns out there’s also a slight matter that the former Jolt, now KWFM 1330-AM, has a contract with CBS. Now that probably wouldn’t prevent another station from taking it away but it does beg the question as to whether CBS might want to try to enforce its contract.

Q. What’s going on with 1330-AM (the old Jolt)?

A. The people in charge at the station aren’t talking and frankly, I haven’t been listening though I tuned in this week to hear them still playing holiday music after Christmas. In an hour’s worth of listening during morning drive, I heard one commercial for a restaurant so it’s not like too many advertisers have been clued in either.

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

Inside Tucson Media appears weekly.

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INSIDE TUCSON BUSINESS

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REGULAR MEETINGS

Women Impacting Tucson Luncheon Cultural anthropologist Debora Neff speaks on gender rights activist Betty Makoni Jan. 7 11:30 a.m. – 1 p.m.

Arizona Inn 2200 E. Elm Street RSVP: arizonainn.com/witlunch

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

Health and Wellness Expo Jan. 8 9 a.m. – 3 p.m.

Doubletree Hotel 445 S. Alvernon Way RSVP: 326-2926; nawbotucson.org Register by Dec. 31 to be entered in Early-Bird prize drawing Building a Diverse and Vibrant Community Award Dinner Feb. 9 6:15 to 9 p.m.

Westin La Paloma Resort & Spa 2800 E. Sunrise Drive Contact: Naomi Weiner director@ aifltucson.org 520.322.9544 www.aifltucson.org Proceeds from this dinner event will benefit the Arizona Israel Friendship League

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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

InsideTucsonBusiness.com

DECEMBER 28,2012

On behalf of all of us at the Inside Tucson Business and is page, businesses represented on th and partners I wish our readers, clients and a wonderful holiday season much success in 2013!

Sincerely, Publisher Thomas P. Lee,

13

14 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

NEWS

In Need of Special Care?

Volunteers surprise school students, staff with makeover

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Inside Tucson Business More than 1,000 volunteers from Victory Worship Center, 2561 N. Ruthrauff Road, spent the weekend of Dec. 9 on a one-day “make over” of Laguna Elementary School, 5001 N. Shannon Road, in the Flowing Wells Unified School District.

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16 classrooms, installing a school-wide wireless sytem and painting the school buildings.

Just like the TV series “Home Makeover,” students and staff were surprised when they showed up the following Monday morning.

Read Flowing Wells Superintendent Nic Clement’s column on page 22 about the make-over and how community partners can make a difference in schools.

InsideTucsonBusiness.com

DECEMBER 28,2012

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How about using a book as a business marketing tool?

The book-as-business-card crowd already includes consultants, speakers and trainers who know that a book boosts their credibility and yields more media attention and higher fees. Dentists, CPAs and attorneys are learning to use books to leverage themselves as experts, creating more visibility, prestige and business.

Executives changing career direction count on a book to establish their new positioning.

Maybe your business or organization could benefit from having a book as a marketing tool but wonder about the cost and difficulty of writing and publishing on your own.

A multi-author book could be the answer.

Through shared costs and writing, a multiauthor book becomes a manageable and practical alternative, especially with the help of a good publishing partner. Here are five potential groups who are well positioned to use this cost-effective marketing tool.

Specialty retailers If you are a specialty retailer, you are in a unique position to enjoy the marketing benefits of a book at potentially no cost.

Done right, your book becomes a product you can sell to customers eager for a souvenir of their unique shopping experience with you.

A multi-author book featuring several similar retailers in different geographic, tourism-oriented areas is a worthwhile cooperative approach for this type of business.

Chocolatiers of the Southwest, anyone?

Franchisers, advisors Are you a franchiser or established industry advisor? You might offer a multi-author book opportunity to your franchisees or clients. These can be collaborative, content-based or might focus on the unique story of each participating author, or both.

For example, a home decorating franchiser invites her franchisees to participate in a multi-author book about key design topics that will interest and educate prospects and clients. Each designer is featured in a chapter.

Each participating author uses the book to market herself in her geographic area. She uses the book as a conversation starter with prospective clients or as an opening to media for free publicity. Itâ&#x20AC;&#x2122;s a perfect give-away at seminars, talks and other marketing events.

Health and wellness Teaming up with peers in related areas of health and wellness can lead to a mutually beneficial book that can be geographically diverse or regionally focused. Each author presents their expertise yet benefits from exposure to the broader audience offered by

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Non-profits Books about your staunchest GAIL WOODARD supporters or happiest successes can become fundraising tools. Veteransâ&#x20AC;&#x2122; organizations sponsor multi-author memoirs of aging veterans and then sell the books to family, friends and community members. Organizations that help people improve their lives might highlight a selection of recent inspiring stories and sell the resulting book.

A book that honors your key contributors can be part of a celebratory fundraiser â&#x20AC;&#x201C; as an incentive or gift. Proper planning with your publishing partner ensures a quality product and achievable revenue goals.

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Local business organizations Cooperative book programs sponsored by local business organizations make it possible for small business owners to enjoy the benefits of having a book and can generate non-membership fee revenue for the sponsoring organization at the same time.

A key to making multi-author books viable is an easy process for writing the content. We like the idea of interviews that yield questionand-answer formatted chapters or ghostwritten narratives. Busy professionals and business owners need only talk to the interviewer for an hour or two and approve the chapter when itâ&#x20AC;&#x2122;s done. Your publishing partner takes care of the rest.

Whether your book is a solo effort or a cooperative, multi-author project, be sure to allocate sufficient time and funds to produce a quality project. Donâ&#x20AC;&#x2122;t go it alone.

It takes almost as much effort to produce an amateurish book as it does to create one of professional quality. The returns, both economic and psychological, will reflect your investment and industry knowledge.

You donâ&#x20AC;&#x2122;t get a do-over once the book is out, so be sure to get the best book possible to help you achieve your marketing goals.

Contact Gail Woodard, owner of Dudley Court Press, at publisher@dudleycourtpress.com. Woodard wrote her own â&#x20AC;&#x153;Your Book as a Marketing Tool. â&#x20AC;&#x153;She is a member of the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO), whose members contribute this column.

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16 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

OUT OF THE OFFICE ON THE MENU

ARTS & CULTURE

Tom Alfonso’s happy hour is first cold pressed

A couple of musical ways to ring in the new year

and that’s what you’re after when looking Wine tastings have long given us the for the right oil for the right occasion, opportunity to try before we buy. Beer whether it’s used as a finishing oil, the base tastings have also bubbled up. There have for a salad dressing or marinade, or an oil also been some shot samplings of other to enjoy all by itself. libations.

Tasting an aged balsamic And now Tucson has a first vinegar is a more refined cold pressed happy hour. encounter, resembling the way in Alfonso Gourmet Olive Oil which you would taste a fine and Balsamics, 4320 N. Campwine. Once the balsamic is bell Ave. in St. Philip’s Plaza, has drawn from the fusti, Alfonso become the dynamic setting for begins with a gentle swirl to daily olive oil “slurpings” and release the aroma for you to balsamic vinegar “sippings.” enjoy before you move forward Owner Tom Alfonso lines up with a small and intentional sip. complimentary shots of the Most of Alfonso’s balsamics classic accompaniments to MATT RUSSELL have been aged between 12 and show off the wide range of oils 18 years, with qualities similar to and vinegars from around the wine, leaving the taster with full fruit world, each representing its own unique flavors and a “velvety mouth feel.” profile and personality, Alfonso and his team can suggest approNothing is pre-bottled in Alfonso’s store. priate companions for the balsamics Each order is custom drawn, bottled, and — though many customers actually enjoy corked from stainless steel tanks called them straight — including a drizzle over ice fustis, which shield the product from heat cream or a few drops in a cocktail. and light.

With 28 olive oils and 29 balsamics in What fascinated me most about the tasting scene at Alfonso’s is the distinct pro- his current rotation, Alfonso has a lot to slurp and sip. tocol for sampling the oils and vinegars, For those of us olive oil and balsamic each of which requires a different approach enthusiasts, perhaps the intravenous drip – and attitude. will be next?

Once an olive oil is drawn from the fusti into a small tasting cup, the objective is to slowly warm the cup by rotating it in the Contact Matt Russell, whose day job is palm of your hand.

CEO of Russell Public Communications, at Alfonso explains that this releases the mrussell@russellpublic.com. Russell is also aroma, as you’re invited to bring the cup to the host of “On the Menu Live” that airs 4-5 your nose and breathe it in. Then it’s time p.m. Saturdays on KNST 97.1-FM/790-AM. for the tasting – er, slurping.

Alfonso suggests an audible and dramatic slurp of the oil to transport it to the back of your tongue and across your palette as quickly as possible. The lingering flavor is the true flavor of the oil, he says,

Film

The Tucson Jazz Society will present its seventh annual New Year’s Eve gala The last big movie weekend of the year Monday night at the J.W. Marriott Starr is upon us and two major films looking for Pass Resort and Spa, 3800 W. Starr Pass award recognition and, hopefully an Blvd. This year’s concert features renowned audience, opened this week. One trumpeter Rick Braun, is the long-awaited adaptation of saxophonist Richard Elliott Broadway smash “Les Miseraand guitarist Peter White. Also bles,” that has an amazing cast on the bill is a performance by including Hugh Jackman, the Tucson Jazz Institute’s Russell Crowe and Anne Ellington Band.

Hathaway as it tells the story set The evening begins at 6:30 in 19th century France of one p.m. and features a five-course man’s obsession with finding and dinner, silent auction (to bringing a petty criminal to benefit the Tucson Alliance for justice. Also new out this week is Autism, the National Autism the latest from director Quentin HERB STRATFORD Society, and the newly created Tarantino, “Django Unchained.”

Tucson Jazz Society’s Youth This quasi-western features a Music Education Program) and champagne man’s quest to get his wife back from an toast. Ticket prices range from $203 to $273, evil slave owner. It stars Jamie Foxx, depending on a table’s location. Buy them Leonardo DiCaprio and Christoph Waltz. online at http://tucsonjazz.org/ . Gala attendees can make a night of it with special resort room rates starting at $137, plus tax and resort fees.

Tohono Chul Park, 7366 N. Paseo del Another New Year’s Eve celebration will Norte northwest of Oracle and Ina roads, take place at the Arizona Inn, 2200 E. Elm has an exhibit up through Jan. 20 called St., where the Tucson Symphony Orches“Horse Country: Horses in the Southtra presents its “Moveable Musical Feasts,” west.” Featuring works by nearly 30 also starting at 6:30 p.m. Monday. The different artists using various media evening features musical performances in including paint, sculpture and photograintimate settings throughout the inn, along phy, the exhibit highlights the role of the with an open bar, a gourmet dinner that horse in Southwestern life. Tohono Chul is includes hors d’oeuvres, salad, an entrée of open from 8 a.m. to 6 p.m. daily but will be seared Mediterranean sea bass paired with closed New Year’s Day. a grilled filet mignon, a post-dinner dessert and then at midnight a dessert buffet, Contact Herb Stratford at herb@ champagne and Viennese coffees to fuel ArtsandCultureGuy.com.

Stratford teaches dancing into the New Year.

Arts Management at the University of Arizona.

Tickets are $225, which is all-inclusive.

His column appears weekly in Inside Tucson Buy them through the symphony’s website Business. www.tucsonsymphony.org.

Art

InsideTucsonBusiness.com

DECEMBER 28,2012

17

BRIEFS GET ON THE LIST Next up: Economic development organizations The 2013 Book of Lists will be published Jan. 25. Now it’s time to start gathering data for the 2014 edition.

For January, regular weekly editions of Inside Tucson Business will publish lists of businesses and organizations in these categories: • Jan. 4: Accounting firms, Tax preparers • Jan. 11: Economic development organizations • Jan. 18: Advertising agencies, Public relations firms, Graphic design firms • Feb. 1: Public school districts, Private elementary schools, Private secondary schools, Charter schools • Feb. 8: Colleges and universities, Specialty and training schools, Child care providers If your business fits one of these categories, update your profile now. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profile by following the directions.

The Book of Lists is a year-round reference for thousands of businesses and individuals.

There is still a short period of time to place advertisements in the 2013 Book of Lists to be published in January. Call (520) 294-1200.

SUBSCRIBER ALERT

3 weeks to delivery changes for Inside Tucson Business In three weeks, effective Jan. 18, subscribers to the print edition of Inside Tucson Business will start receiving their copies Friday

mornings, along with other newspapers.

Circulation Manager Laura Horvath encourages all subscribers to make sure their delivery address for Inside Tucson Business can receive newspapers. Under the new system, Inside Tucson Business will arrive in a bag but without an address label.

A mailer sent to all subscribers last week included a card inviting subscribers to change their address.

Subscribers also may change their delivery address by sending an email to circulation@ azbiz.com. Put “Change my delivery address” in the subject line. Include your address as it currently appears on the front label and then the new address where you would like to start receiving Inside Tucson Business.

east corner of Silverbell and Goret roads.

• Purple Heart Park, 10050 E. Rita Road at the southeast corner of Esmond Loop.

• Randolph Golf Course, 600 S. Alvernon Way in the southeast portion of the parking lot.

Ornaments, other decorations and tree stands need to be removed from the trees before dropping them off at TreeCycle locations.

From Jan. 2-6, free wood chips will be available at the Udall and Randolph park locations.

Anyone wanting to take home the wood chips should bring their own containers.

The city does not collect Christmas trees as part of regular garbage collections. And green waste other than Christmas trees cannot be accepted at the TreeCycle locations.

TECHNOLOGY

HOLIDAYS

TreeCycle Christmas trees at 9 sites through Jan. 6 TreeCycle, the City of Tucson’s annual program that turns Christmas trees into landscaping wood chips, is open through Jan. 6 at nine locations.

This is the 17th year of the program.

Dropoff locations are open every day during daylight hours at: • Naranja Town site, 660 W. Naranja Drive, Oro Valley • Rillito Race Track, 4502 N. First Ave., in the east parking lot.

• Udall Park, 7200 E. Tanque Verde Road, south of the ball fields.

• Golf Links Sports Park, 2400 S. Craycroft Road.

• Tucson Rodeo Grounds, 4823 S. Sixth Ave. • Los Reales Landfill, 5300 E. Los Reales Road.

• Silverbell site, a city-owned property south of Silverbell Golf Course at the north-

2 Tucson tech firms get Innovation grants Two Tucson firms are among six companies the Arizona Commerce Authority has selected to receive Innovation Challenge grants.

This is the second grant award issued by the commerce authority, which says it wants to continue issuing them semi-annually.

The Tucson recipients are Instant BioScan and Post.Bid.Ship.

Instant BioScan, 2102 N. Forbes Blvd., Suite 105, will use its award to further commercialize its testing methods in large drinking, recreational and industrial water systems. The company was started by Deward “Dewey” Manzer, who previously had been a co-founder of BioVigilant, which made technology to detect airborne microbial contamination.

Post.Bid.Ship, a company that connects businesses with freight transportation options. It was devised by Jarret Hamstreet and Micky Thompson as a school project while

they were attending the University of Arizona Eller College of Management.

Each company will receive up to $250,000 and given 12 months to commercialize their products.

The winners were chosen from a pool of 200 applicants and 25 semifinalists. The ACA plans to conduct another challenge in the spring. The two grant awards issued this year provided a total of $3 million.

GOVERNMENT

City sets five forums on new general plan The draft of Plan Tucson, the city’s proposed new general plan is now available for public comment. The plan is required by state law and will be on the Nov. 5, 2013, ballot for voters to ratify.

The idea is for Plan Tucson to be the guiding document for growth and development of Tucson over the next decade. It covers of economic development, parks and recreation, arts and culture, public infrastructure and facilities, natural environment, revitalization and redevelopment, and land use and transportation.

Five open house events are scheduled to present the plan and then allow for feedback.

Upcoming meetings are: • Jan. 9, from 7-8:30 p.m. in the meeting room at the Tucson Police Department’s Westside Service Center, 1310 W. Miracle Mile.

• Jan. 12, from 9-10:30 a.m. in the meeting room of the Tucson Police Department’s Hardesty Center, 1100 S. Alvernon Way. • Jan. 31, from 7-8:30 p.m., in the conference of the Ward 2 Tucson City Council office, 7575 E. Speedway.

The draft plan is also online at www.tucsonaz.gov/plantucson .

PEOPLE IN ACTION NEW HIRES Cox Communications has hired Stephanie Barat Healy as its new director of public affairs for Southern Arizona. Healy will be responsible for all public affairs and community relations activities in Pima and Cochise counties. Prior to Cox, Healy was the executive vice president for the Southern Arizona Leadership Council (SALC).

Healy also served as president of the Hospital Council of Southern Arizona and director of economic development for the Tucson Metropolitan Chamber of Commerce.

The Center for Planned Giving Planned, which operates under the

auspices of the Community Foundation for Southern Arizona (CFSA), has hired Leah Geistfeld as executive director. Over the past 10 years in Tucson, Geistfeld built two financial services practices with State Farm and New York Life, and she has a background in management, finance and accounting. Geistfeld’s professional and volunteer contributions include serving as a board member and director of government relations for the National Association of Insurance and Financial Advisors, advisory board member for Arizona Youth Education Scholarships, professional advisors committee member for CFSA, volunteer bingo caller at local Senior Center, child ID administrator

STEPHANIE HEALY

at local events and an economic success instructor for Junior Achievement.

Westward Look Wyndham Grand Resort & Spa has hired William L. Oviatt as director. Oviatt comes to the Sonoran Spa from Spa Nordstrom in Scottsdale, where he served as spa manager. Oviatt also served as spa director at The Village Health Club and Spa in Phoenix, clinic

LEAH GEISTFELD

SALLEY REEL

{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. manager at Massage Envy in Phoenix and spa director and membership manager at CopperWynd Resort & Club in Fountain Hills.

APPOINTMENTS Sally J. Reel, Ph.D., RN, FNP, BC, FAAN,

FAANP, associate dean of academic practice at the University of Arizona College of Nursing, has been appointed to the National Advisory Council on Nurse Education and Practice of the Health Resources and Services Administration, U.S. Department of Health and Human Services.

The National Advisory Council is comprised of 21 members selected by

the secretary of the U.S. Department of Health and Human Services. Over 11 years at the UA College of Nursing, Reel has been the principal investigator on multiple grants totaling more than $18 million. She also serves as the director of the Arizona Area Health Education Centers program.

Her term on the council runs through Sept. 30, 2016.

ELECTIONS The Arizona’s Children Association has announced that Ingrid Novodvorsky, Ph.D., will serve as the chair of the board of directors for the 20122013 year. Novodvorsky is currently the director of the College of Science Teacher Prep Program for

the University of Arizona in Tucson. Additional new officer positions include: Holley Stacy, chair-elect, Vice private of banking, M & I Private Bank, Scottsdale; Tom McKenna, first vice chair, vice president, Tucson Electric Power; Barbara Sparks, second vice chair, vice president, Ridgewood Associates Public Relations; Amelia Anderson, treasurer, managing director of corporate finance and treasury, U.S. Airways, Tempe; and Renee Dinwiddie, secretary, SW Regional Service Manager, Blue Cross, Blue Shield, Yuma.

18 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

FINANCE YOUR MONEY

5 investment opportunities now that you have less debt In the past few years, Americans have done a pretty good job of whittling down their debt load.

If you’re in this group, you may now have a chance to use your lower level of indebtedness to your advantage — by investing for the future.

Consider the numbers: In 2007, just before the financial crisis, the household debt service ratio in the U.S. was about 14 percent. (Debt service ratio is the ratio of debt payments, including mortgages and consumer debt, to disposable personal income.)

In 2012, the ratio has dropped to below 11 percent, the lowest it has been since 1994.

These figures are national averages, but they do translate into real-life savings for many of us. If you’re in this group — that is, if you’ve lowered your debt payments noticeably — what should you do with this “found” money?

Of course, you could spend it on material objects, which in some cases, may make your life more pleasant today. But you’d probably be better off by devoting your financial resources to your goals for tomorrow, such as college for your children and, eventually, a comfortable retirement lifestyle for yourself.

Save for the goals Consequently, you want may want to consider these suggestions: • Increase your contributions to your retirement plan. Try to put more money into your employer-sponsored retirement plan, such as a 401(k), 403(b) or 457(b).

Your contributions are typically made with pretax dollars, so the more you invest, the lower your taxable income. Plus, your earnings can grow on a tax-deferred basis.

• Fully fund your IRA. You can put in up to $5,000 per year (as of 2012) to a traditional or Roth IRA, or $6,000 if you’re 50 or older. A traditional IRA grows tax-deferred, while a Roth IRA can grow tax-free, provided you meet certain conditions.

• Fill in “gaps” in your financial strategy.

With a little extra money each month, can you find ways to fill in the “gaps” in your financial strategy?

For example, do you have sufficient life insurance and disability income insurance? Or can TIM BEITHON you add some investments that can help diversify your overall portfolio?

While diversification can’t guarantee profits or protect against loss, it can help reduce the effects of volatility on your holdings.

• Build an emergency fund. It’s a good idea to build an emergency fund containing six to 12 months’ worth of living expenses.

Without such a fund, you may be forced to dip into long-term investments to pay for unexpected costs, such as a large bill from the doctor or a major car repair. Keep the money in a liquid, low-risk account.

• Establish a 529 plan. If you have children or grandchildren whom you would like to help get through college, you might want to contribute to a 529 plan.

Your earnings grow tax-free, provided withdrawals are used for qualified higher education expenses. Plus, your contributions may be deductible from your state taxes. (Be aware though, that withdrawals used for purposes other than qualified education expenses may be subject to federal and state taxes, plus a 10 percent penalty.)

Reducing your debt level can remove some stress from your life. And you’ll gain even more benefits from debt reduction by using your savings to speed your progress toward your important financial goals.

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

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

Company Name

Symbol

Dec. 26 Dec. 19 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 0.09 16.74 42.87

0.02 0.07 15.92 43.01

0.00 0.02 0.82 -0.14

0.02 0.01 9.56 35.20

0.12 1.00 16.88 43.56

8.71 0.80 2.30 11.41 61.46 9.17 89.40 11.46 54.61 3.75 19.67 39.29 37.07 30.60 39.13 16.32 98.68 39.12 48.40 11.73 81.69 64.57 19.49 33.93 33.50 61.14 63.83 191.54 31.15 60.87 5.27 43.82 36.27 15.35 42.69 26.10 1.12 38.27 35.15 40.55 58.10 36.41 36.94 36.77 49.69 68.10 20.14 18.03 57.78 51.27 17.97 47.22 38.90 12.67 10.39 42.41 39.77 58.77 17.49 30.90 47.33 23.81 124.71 20.44 13.34 32.18 67.98 36.52 34.24 10.67 21.25

8.64 0.94 2.33 11.19 61.65 9.19 90.10 11.90 55.38 3.57 19.96 39.45 38.01 31.46 40.05 16.48 98.68 39.75 48.75 11.83 84.30 64.92 19.92 33.95 34.43 61.77 63.77 195.08 31.11 62.13 5.53 43.53 36.64 16.66 44.75 26.50 1.16 39.27 35.11 41.17 57.73 38.77 37.22 37.95 49.60 68.70 20.88 18.46 58.75 51.30 18.14 46.74 44.28 12.80 10.56 42.64 39.75 61.52 17.87 31.25 47.64 23.96 125.77 20.72 13.48 32.20 68.52 37.24 34.62 10.65 21.54

0.07 -0.14 -0.03 0.22 -0.19 -0.02 -0.70 -0.44 -0.77 0.18 -0.29 -0.16 -0.94 -0.86 -0.92 -0.16 0.00 -0.63 -0.35 -0.10 -2.61 -0.35 -0.43 -0.02 -0.93 -0.63 0.06 -3.54 0.04 -1.26 -0.26 0.29 -0.37 -1.31 -2.06 -0.40 -0.04 -1.00 0.04 -0.62 0.37 -2.36 -0.28 -1.18 0.09 -0.60 -0.74 -0.43 -0.97 -0.03 -0.17 0.48 -5.38 -0.13 -0.17 -0.23 0.02 -2.75 -0.38 -0.35 -0.31 -0.15 -1.06 -0.28 -0.14 -0.02 -0.54 -0.72 -0.38 0.02 -0.29

7.97 0.24 1.48 5.27 50.95 5.30 75.86 11.41 50.89 2.97 14.66 24.61 23.38 16.11 22.19 12.13 78.81 36.25 40.78 7.83 42.54 50.27 12.06 30.54 21.38 41.52 52.21 177.35 27.10 51.88 3.94 30.83 26.10 6.17 42.36 20.98 0.68 18.83 24.76 37.02 49.67 31.95 29.02 22.20 39.40 56.56 15.69 5.88 47.50 38.63 14.73 33.03 28.89 6.25 7.76 39.01 25.74 47.25 14.04 26.06 33.62 17.25 104.08 18.36 4.97 28.53 57.18 28.53 27.08 6.02 16.02

10.92 0.99 3.65 11.52 61.84 9.75 90.93 27.95 60.00 4.93 21.16 40.18 38.22 32.70 40.63 17.42 105.97 43.43 49.80 12.25 89.98 67.20 22.79 48.96 34.46 65.92 64.35 211.79 37.70 62.86 5.85 46.49 37.54 17.30 55.25 27.11 1.81 39.88 36.47 43.36 62.83 42.17 41.84 42.59 50.46 71.25 43.18 18.66 59.34 51.75 23.16 47.76 85.90 14.32 10.61 46.08 41.82 65.80 18.23 34.24 48.54 25.84 129.27 58.29 14.51 35.46 77.60 37.75 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 28,2012

19

INSIDE REAL ESTATE & CONSTRUCTION

Tax credit to expire on ‘underwater’ homes

By Roger Yohem Inside Tucson Business Beyond the “fiscal cliff ” debate, there is a more serious and immediate situation for “underwater” homeowners. It’s a situation that could negatively impact builders, real estate agents and lenders in 2013.

The Mortgage Forgiveness Debt Relief Act, passed in 2007 in response to the housing market crash, is set to expire after Monday. If that occurs, financially stressed “underwater” homeowners who go through a foreclosure, short sale or principal reduction could face significant tax consequences.

Basically, these people would be liable to pay income tax on the amount of the mortgage that is forgiven. For example, if $150,000 is owed on the mortgage and the house sells for only $100,000 in foreclosure, the home owner would owe tax on the $50,000 difference.

That’s a $12,500 hit for someone in the 25 percent tax bracket.

“Expiration of this law will directly impact the middle-class home owner,” said housing analyst Ginger Kneup, owner of Bright Future Real Estate Research. “The no-cost short sale will no longer be an option for underwater home owners. It could significantly impact our local housing market and the economy in general.”

Mortgage debt that is forgiven or written off is treated the same as income by the Internal Revenue Service. If the law expires, forgiven mortgage debt will be taxable regardless of the liquidation or loan modification process used by the lender.

About 500 homeowners each month in the Tucson region go through foreclosure.

If the tax break expires, “foreclosures are likely to rise again. This would set our prog-

THE PULSE:

TUCSON REAL ESTATE

12/17/2012 12/10/2012

Median Price Active Listings New Listings Pending Sales Homes Closed

$156,250 4,972 257 290 186

Source: Long Realty Research Center

$163,250 5,007 325 325 152

Sales and leases

Foreclosed homeowners could face a huge tax bill next year.

ress back several years. More homeowners will be stuck in properties they can’t sell, greatly limiting demand in the move-up and new home markets,” Kneup said.

Realtors’ top achievers The Tucson Association of Realtors has honored members and affiliates for outstanding achievements, association participation and community leadership during 2012.

Each honoree was nominated, evaluated and selected by their member-peers. The individual winners were: • Realtor of the year: Eric Gibbs, Coldwell Banker Residential Brokerage • Affiliate of the year: Steven Van De Beuken, Sunstreet Mortgage • Outstanding Service (to the association): Wendy Trush, Tierra Antigua Realty, and Lynn Hellwig, HomeSmart • Roy P. Drachman Community Achievement Award: Liz Peckham, Long Realty Company

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

Current

Last Week

12/24/2012

One 12 Month 12 Month Year Ago High Low

3.38% 3.625%APR 3.50% 3.75%APR 4.95% 2.75% 3.00%APR 2.88% 3.125% APR 4.22% 2.63% 2.875%APR 2.75% 3.00% APR

4.95% 4.22%

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

3.38% 2.75%

• Florence Johnoff Community Achievement Award: Tom Heath, Bancapital • Corporate and community achievement: Win3 Realty, Long Realty, and Tierra Antigua Realty.

• Committee of the year: Seize the Day, Impact the Future

Inside the stats With the exception of Oro Valley, home sales values in each sector of the Tucson region have increased at least 14 percent over the past 12 months. Since November 2011, selling values improved the most inside the city of Tucson.

Oro Valley prices have remained essentially flat compared to a year ago. The new monthly data is from Coldwell Banker Residential Brokerage.

In Tucson, the average selling price per square foot increased 14.6 percent yearover-year, rising to $94 from $82. That compares with Sahuarita where selling prices were up 11.3 percent over the same period to $79 per square foot from $71, Marana where they were up 8.7 percent to $112 from $103 and Oro Valley where they remained steady at about $130 per square foot.

Malcolm McEwen, Arizona division president for Coldwell Banker, says this pricing analysis is the “most significant” metric because it “normalizes the mix” of high-priced and bargain properties.

Year over year, listings region-wide have declined 15 percent to 4,430 last month from 5,191 in November 2011. Inventories dropped 32 percent in Tucson to 3,241 from 4,767.

• TMC Holdings Inc. purchased a 7,258 square-foot medical office building 2325 N. Wyatt Drive for $550,000 from Wyatt Medical Offices LLC, represented by Andrew Sternberg and Robert Nolan, Oxford Realty Advisors. The buyer was represented by Rick Kleiner and Tom Knox, Picor Commercial Real Estate Services.

• VIP Mortgage leased 4,810 square feet at 2120 W. Ina Road, Suite 250, from Foothills Retail Plaza LLC, represented by Bruce Suppes and David Montijo, CBRE. he tenant was represented by Jean Barclay, Oxford Realty Advisors.

• Douglas Diesel leased 3,750 square feet at 3680 S. Park Ave. from Wilkie Trust, represented by Dave Gallaher, Tucson Industrial Realty. The tenant was represented

by Esther Empens, Tierra Antigua Realty.

• CoreLogic leased 2,983 square feet in Centro de Negocios Las Palmas, Hermosillo, Sonora. Denisse Angulo, Picor Commercial Real Estate Services, handled the transaction.

Picor is licensed to do business in Mexico.

• Desert Hope Lutheran Church leased 2,894 square feet at 2500 N. Pantano Road in Woodland Plaza from North Pantano Associates LLC, represented by Randee Turner, Mandala R/E LLC. The tenant was represented by Ian Stuart, CBRE. • Ignite Personal Training and Group Fitness leased 2,738 square feet at 6437 N. Oracle Road from Three-D Properties, represented by Craig Finfrock, Commercial Retail Advisors. The tenant was represented by Duane Mann, D. Mann Real Estate.

• Midair Spares Corporation leased 1,265 square feet at 10371 N. Oracle Road, Suite 103 from Lake Investment Group LLC, represented by Tom Nieman with Picor. The tenant was represented by Tari Auletta with Newmark Grubb Knight Frank.

• Workmens Boots and Shoes leased 1,200 square feet at 1835 S. Alvernon, Suite 211 from Presson Midpoint LLC, represented by Rob Glaser and Paul Hooker with Picor.

• PM Tucson LLC leased 1,200 square feet at 2118 W. Grant Road from Massapequa Associates LLC, represented by David Hammack of Volk Company Commercial Real Estate.

• AlteTech Cell Phone leased 1,200 square feet at 4695 N. Oracle Road, Suite 110 from 4695 North Oracle Group LLC, represented by Greg Furrier and Jeff Zellet with Picor.

• Cactus Counseling Associates leased 1,170 square feet at 3710 S. Park Ave, Suite 704 from Gateway Industrial Park LLC, represented by Jeff Zellet and Patrick Welchert with Picor.

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

20 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

EDITORIAL BIZ BUZZ

I made it without the NFL Ticket, go Pac-12 Phew. I’ve just about made it through the entire NFL regular season without the NFL Ticket.

This year, sports fans in the Pac 12 were faced with a tough TV decision: we could either have the new Pac-12 Network or the NFL Ticket. Only someone with too much money on their hands could have both because it would mean signing up for two TV cable or satellite services.

DAVID HATFIELD I should know, I used to do that.

For me, the decision came a year ago when I cancelled my subscription to DirecTV. I live in an area where I can’t receive local TV without cable so basically the satellite service was my splurge so that I could watch NFL Ticket. And I liked it.

But for as good as the sports programming was, their customer service is rotten. I always dreaded having to call in. I can’t remember a time when it didn’t end in frustration, usually resulting in having to send a service technician out. All I wanted to do was watch TV. My frustration peaked in 2011 when DirecTV gave new subscribers free access to NFL Ticket but left us long-time customers paying the full “early renewal” rate of $399. To top it off, on the opening Sunday of the season, the satellite service had a major meltdown that prevented those of us who had a certain kind of receiver from being able to see the games. (That call took an hour and 40 minutes.)

That’s when I decided I’d had it. A couple days later, I called to ask specifically what they intended to do about my not receiving a day’s worth of the NFL Ticket. They credited my account for $23 but said I couldn’t cancel. I promised them at that time I would cancel my entire service as soon as the NFL season ended.

So it was a year ago next week. I made the call. It was the easiest one I ever made. I was either a big-enough pain in the you-know-what or that customer service rep back in September had made a note that I was a hopeless cause. They didn’t try to talk me out of it.

I must admit I almost slipped back earlier this year. I called DirecTV and figured out the costs for signing up just for the NFL season, then cancelling and paying the early termination fees. It would have been about $500.

Now that the NFL regular season is about to end, I’m feeling as if I’ve won a personal victory. I’ll watch the playoffs and the Super Bowl. Beyond that, there’s the University of Arizona Wildcats for what is shaping up to be a remarkable basketball season.

And I’ve got the Pac-12 Networks. Yeah, baby!

There’s been a lot of talk and blame over the Pac-12 not coming to a deal with DirecTV. Nobody outside of those directly involved knows why they haven’t come to terms after six months.

So’s here’s the way I figure it: The Pac-12 has made agreements with every other TV provider in the Tucson market — Cox, Comcast, Dish Network and independent cable companies including Western Broadband. The conference says it won’t do a deal that undercuts those deals.

DirecTV has its own argument, saying the Pac-12 is refusing to either price its network low enough for it to be on a basic tier or allow it to be sold as a premium channel.

Let me think about that for a second. OK, I know which I believe. After all, I was a DirecTV subscriber once.

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

EDITORIAL

To a prosperous New Year For eight years now, Inside Tucson Business has conducted a poll of its staff to rank the most meaningful and impactful business news stories of the year. It’s not just a popularity ranking. The idea is to try to get to the things that will affect the Tucson region long-term.

An example would be this year’s elections. For all the campaigning that was done, the outcomes were less than startling. As a result, compared to some other years, this year’s election ranked rather low at No. 16.

We’re not saying that’s either good or bad. It’s just that we don’t believe this year’s elections bring any meaningful long-term change. That’s part of the point.

The staff is made up of humans and sometimes emotions do enter into the poll.

Last year for example, there was no way to escape the fact that we were all affected by the Jan. 8, 2011 shootings at the Congress on Your Corner event being held by then-U.S. Rep. Gabrielle Giffords. Tucsonans will have lasting memories of the six people who lost their lives that day: Christina-Taylor Green, Dorothy Morris, John Roll, Phyllis Schneck, Dorwan Stoddard and Gabe Zimmerman.

This year though, we have to admit some surprise that the staffers’ collective wisdom chose the revitalization of downtown Tucson as our most meaningful business story. Something, actually lots of things, are happening downtown. Sun Link, the modern streetcar, student housing developments, a burgeoning restaurant scene and other activities are bringing life to a place that hasn’t seen much of it since the 1970s.

Downtown revitalization also made the No. 1 spot once before, in 2009. But that time it was due to the fact that the City of Tucson had squandered a decade’s worth of work and tax revenues and that state lawmakers had seized control of the Rio Nuevo Multipurpose Facilities District.

As it turns out, downtown revitalization doesn’t solely revolve around Rio Nuevo and the Tucson Convention Center. Things are happening and they’re exciting things.

Positive news hasn’t always topped the list of most meaningful news stories.

Besides the shootings last year, in 2010 there was Raytheon Missile Systems choosing to bypass its hometown to build a manufacturing facility in Alabama, in 2009, there was the aforementioned Rio Nuevo fiasco.

In both 2008 and 2007, the ongoing Great Recession topped the list and in 2006, it was the bust in the housing market.

Which takes us back to the first year Inside Tucson Business conducted this exercise: 2005.

Just to refresh your memories, these are some of the things that happened that year: The U.S. Department of Defense and the Base Realignment and Closure (BARC) commission decided to maintain staffing levels at Davis-Monthan Air Force Base and increase them at Fort Huachuca, Tucson Regional Economic Opportunities (TREO) was created, copper was setting record high prices, and Raytheon was winning one defense contract after another. Democrats Nina Trasoff and Karin Uhlich won seats on the Tucson City Council, ousting Republicans Kathleen Dunbar and Fred Ronstadt. U.S. Rep. Jim Kolbe decided against seeking re-election and the Critical Path Institute (C-Path) was created. Also, Pella Corp. opened a window manufacturing plant and the JW Marriott Starr Pass Resort and Spa opened.

All in all, an impressive series of events. Some didn’t last long.

But the biggest news story of the year in 2005? The housing boom. By October that year, local jurisdictions has issued a record 10,046 housing permits. Home prices were at record highs. During summer, the average number of days a home was on the market dropped to just 26.

At least our crystal ball saw “a cooling down” of the “madness and mayhem,” as we called it at the time, but economists assured us the bubble would burst.

Things were good then. If only some things like those could happen next year, 2013 will be prosperous. Happy New Year.

InsideTucsonBusiness.com

DECEMBER 28,2012

21

OPINION WAKE UP, TUCSON

Now I present to you, the 2012 Wakey awards Every columnist must include the ubiquitious “Best of 2012” awards and this column is unoriginally no different.

Without further adieu, let’s get on to the inaugural “Wakeys”!

• The One-Man Band Award: Tucson Mayor Jonathan Rothschild. This guy has to deal with a schizophrenic city council, an entrenched bureauacracy drowning in union antics and years of well-earned public mistrust. Like Dr. Leo Marvin in “What About Bob?,” it’s all about the “babysteps” Rothscild is making nice strides in land use code, relations in Mexico relations and calling out Tucson Regional Economic Opportunities to show us its “results.” If the mayor can find a consistent four votes, he could make some nice things happen.

• 10,000 Pictures of People Point at Maps Award: Imagine Greater Tucson. This boondoggle is the poor country cousin to the Sonoran Desert Conservation Plan.

More than $500,000 of taxpayer dollars has been spent creating — without much business input — a document that will give cover to the region’s no-growthers. If they don’t have a picture of a map-pointer, then

the stock photo of a Rio Nuevo folklorico dancer can be used.

• The Windex Award: Brent DeRaad, new CEO of the Metropolitan Tucson Convention and Visitors Bureau. Since his CHRIS DESIMONE arrival, DeRaad has been a breath of fresh air. He is transparent, accountable and accessible. He even says crazy things like: “If I am not getting the job done in a couple of years, get rid of me.” (That’s paraphrased.) DeRaad is polishing the tarnished image of the MTCVB and executing a smart plan of research, rebranding and aggresively telling Tucson’s great story.

• Thank You, Sir. May I Have Another?

Award: Downtown business owners. They have to be the nicest, most trusting group of masochists in the region. They are determined to power through this construction of the modern streetcar line in the

face of dealing with ever-changing construction deadlines, weak marketing and support from City Hall and pretty bureaucrats.

• The ‘Diners, Drive-Ins and Dives’ Award: Tucson restaurant owners. Our region has an amazing group of locally owned restaurants. A Scottsdale friend who works for Wine Spectator tells me of Tucson’s culinary superiority on a regular basis. Start with the amazing Sonora-influenced eateries from carne seca to al pastor to pan dulce, all of which will be featured

by Visit Tucson in 2013. Top that off with places that feaure the best of international cuisine and American regional dining. Mix in a little Ethiopian and Bosnian cuisine and finish off with a Philly cheesesteak.

• Cheech and Chong Award: Pima County Elections. An Arizona Daily Star article on Nov. 7 reported, “The American Civil Liberties Union named Pima County as the worst offender in disenfranchising voters in 2008.” The county retained that reputation this year. Between messed up voter registration logs and the post-Election Day boondoggle of counting provisional ballots, voters got the a raw deal.

Here’s a question for Brad Nelson, director of Pima County Elections: What percentage of Pima County’s voters’ votes are sacred and should be treated that way? Answer: All of them.

• Low Hanging Fruit Award: F-35 and Rosemont Copper. Both economic opportunities are right there. Mayor Rothschild visited Dallas last week to listen to how much noise the F-35 makes. Now he needs to lead Tucson officials in getting on board to bring a training facility here.

(Pima County, Oro Valley, Marana and Sahuarita are already on board.) Meanwhile, Rosemont Copper should get a positive decision in February and this region can get going on the $1 billion mine that will employ a couple thousand Tucsonans.

Now it’s on to 2013. There are some bright spots out there. Let’s see if they come together. We all could use a happy and more prosperous new year.

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

Pima County lays the base for region’s economic development The economic future of the Tucson region rests on our ability to create a favorable environment that attracts new businesses, expand those already here, and increases employment opportunities. This combination generates the wealth from which all other businesses benefit.

With this in mind, the Pima County Board of Supervisors last month approved a comprehensive economic development action plan. In its simplest form, the plan builds upon a strategy for public investment that will help jumpstart commercial activity and create new jobs.

With strong leadership from the Board of Supervisors, we have placed increased emphasis in recent years on identifying specific ways we can partner with business to benefit the region as a whole.

These efforts are beginning to bear fruit.

Tucson Regional Economic Opportunities reports that in the past two fiscal years and within the first six months of the current fiscal year, 24 companies have arrived or expanded in the region, bringing with them the potential for 4,600 jobs.

Among some of the announcements just this year: • Pima County played a critical role in securing the headquarters of Accelr8 Technology Corporation, which develops instruments to rapidly detect pathogenic microorganisms and has the potential to

generate 300 jobs.

Pima County obtained financing for improvements in the County’s health department building, including the construction of wet lab space, which will be available to serve CHUCK HUCKELBERRY other companies once the company settles in permanent quarters.

• Pima County was actively involved in the recruitment of Integrated Technologies Group and welcomed it’s new manufacturing operation with the potential for 200 jobs. The county’s new certificate of occupancy process spelled a smooth transition for the company into existing vacant space, since no inspections are necessary from the County if there are no changes to the building structure.

• Meanwhile, Pima County has offered staff expertise and support to Aris Integrated, a building design and manufacturing center, with the potential for 600 jobs in the coming years. The county will work with the company in securing a Foreign Trade Zone designation, if appropriate, and can assist with the accreditation process that can expand the use of its materials in the construction industry.

While high-paying jobs are coveted throughout the country, it’s becoming increasingly clear nationally that the answer rests not so much in one-upping one another with lucrative incentives.

Pima County instead has taken the approach that we will work to be a solid partner with our local businesses and industry leaders, to foster connectivity and support them in efforts to become more competitive.

Pima County does this in a number of ways. To name a few: • Pima County ensures regional collaboration in the economic development process.

As a regional government, Pima County does not have a stake in whether a company prefers Tucson or Marana or Oro Valley or Sahuarita or South Tucson. As a result, we increased annual funding for Tucson Regional Economic Opportunities, allowing our region’s lead regional recruitment arm to continue to speak with a unified voice in attracting new, high-paying jobs.

• Pima County’s One-Stop Career Center is far more than a placement agency.

Although One-Stop is a great resource for adults and youth seeking work, it is likewise an important resource for businesses by helping to pinpoint gaps in workforce needs.

When it became clear there was a shortage of skilled workers to install new large-scale solar systems, One-Stop helped develop training programs to meet the need.

One-Stop trained auto mechanics to work with the new hybrid and biodiesel technology to meet the evolving needs of consumers. One-Stop also helped create a certification program to address a training shortage in supply chain management. One-Stop continues to offer advanced training for occupations requiring increased technical skills, and is working with a focus group of aerospace-related companies to develop a pool of precision machinists.

• Development Services is serious about quality performance. As a result of ongoing discussions with industry stakeholders, Pima County is shortening the time it takes to get business projects started. In fiscal year 2011-12, nearly 85 percent of all building permits were approved in 5 working days, and 99 percent of building inspections are performed on the scheduled inspection date.

• The Regional Wastewater Reclamation Department is streamlining its processes.

Among other improvements, the department is also adding a “pre-application” feature.

We’ve said we were serious about doing business. We mean it.

We still have work to do. But we’re laying a strong foundation for the future and look forward to building our economic base.

Chuck Huckelberry is the Pima County Administrator.

22 DECEMBER 28, 2012

INSIDE TUCSON BUSINESS

OPINION GUEST OPINION

Community partners help make schools shine Remember your heart-felt amazement when you first watched the TV show “Extreme Makeover-The Home Edition?”

Now imagine that same concept, only on a much larger scale without the glitz and glamour of the cameras, advertising sponsors’ money and hundreds of paid staff.

Extreme Makeover - the Laguna School Edition actually happened two weeks ago thanks to the overwhelming generosity of the Victory Worship Center, 2561 W. Ruthrauff Road.

Providing more than 1,000 volunteers and all the materials and supplies, Victory, in just one day, completed a once-in-alifetime makeover of Laguna Elementary School, 5001 N. Shannon Road, in the Flowing Wells Unified School District.

Projects included exterior painting of the entire 100,000 square-foot school, installation of new outdoor play areas including regulation grass and sand volleyball courts, installation of countertops in 16 classrooms, installation of school-wide wireless equipment, hand-

painted murals, and a large number of other school improvement projects.

Unlike the TV show, the projects at Laguna were all completed in one day with the help NICHOLAS CLEMENT of rented lights to allow volunteers to work late into the night. In addition to the external school improvements, Victory Worship Center surprised the Laguna teachers and staff the following day with a gift of a new iPad. Not unlike the families receiving new homes on the TV show, the family that makes up the Laguna school faculty and staff showed their gratitude with tears of joy. Students arrived at school Monday morning in awe, along with more tears and even a few screams of excitement.

This is just one example of hundreds of partnerships that are occurring among

churches, small and large business, colleges, and non-profits with Southern Arizona public, private, and charter schools.

Our partners rarely toot their horns and instead quietly dedicate their energies and resources to making a difference in students’ lives, one program at a time.

Our partners understand the importance of sustaining their support and many school community partnerships have been in existence for years.

Benefits schools receive from partnerships go way beyond helping fill the budget gaps created by the down economy.

Partnerships help schools keep from being isolated and insulated from our communities and the real world of work and careers.

Students experience first-hand the power of volunteerism and are more apt to volunteer themselves when they see adult role models coming on their school campuses fixing playground equipment, planting trees, and painting.

Partnerships provide much-needed individual tutoring through Reading Seed

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and other Literacy Connects programs.

Students can learn about science careers in class, but participating in an off campus hands-on science camp with a partner like IBM, Raytheon, and the University of Arizona can be life changing.

It is time to stand up and recognize the incredible impact these partners are making in our Southern Arizona schools.

If you are a parent, take some time to find out which community partners are involved in your school and let them know how much you appreciate their contributions. If you want to become a partner, contact your local school principal or superintendent.

We want to expand the movement. All it takes is one partner, one school, and one project to transform student lives.

Contact Nic Clement, superintendent of the Flowing Wells United School District, at clementn@flowingwells.k12.az.us See page 14 for photos of the Laguna school “makeover.”

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