BizTucson Fall 2024

FALL FALL2024 2012

THE REGION’S BUSINESS MAGAZINE

&

SPECIAL REPORTS: Town of Sahuarita JKaiser Workspaces FALL 2024 • $3.99 • DISPLAY UNTIL 12/31/24

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BizLETTER DOWNTOWN MOMENTUM It has been exciting, to say the least, to watch Downtown Tucson transform into a vibrant urban center over the years. Journalist Jay Gonzales takes us on a compelling deep dive and update on its remarkable renaissance. The story rightfully begins with Rio Nuevo, the driving force behind its momentum.

“The ROI of RIO: Rio Nuevo Sets Successful Path for Downtown Revitalization” headlines our package.

Gonzales writes “Downtown Tucson revitalization, and its massive undertaking over the last 10 years, has been about more than return on investment – or ROI − for those who have brought the city’s core back to life. One might say Tucson has a proverbial bounce in its step thanks to the developers, business leaders, state and local governments and community organizations that have all collaborated to create a hip downtown with hundreds of millions of dollars in investment.”

Rio Nuevo Chair Fletcher McCusker said, “Since 2012, Rio Nuevo has invested $108 million in Tax Increment Financing funding into downtown projects which has generated more than $1.2 billion in private investment made into hotels, restaurants and bars, office buildings and other amenities.”

Our Downtown Momentum coverage highlights the dining scene, “Living Large: Live, Work and Play,” and the Sun Link Streetcar, which over the last decade has spurred $4.9 billion in transit investment along the 3.9-mile route from the University of Arizona to downtown. Tiffany Kjos shares the story of the crown jewel of downtown’s arts scene, the Tucson Museum of Art and Historic Block as it celebrates a century of excellence. Tara Kirkpatrick writes about Children’s Museum Tucson, housed in the historic Carnegie building, receiving a record $1 million grant from Angel Charity for Children. And finally, USA Today’s No. 1 bike race– our own El Tour de Tucson–chooses downtown for the race’s start and finish.

For so many reasons, our downtown is the heart and soul of Tucson.

JKaiser Workspaces, founded by CEO Jessica Kaiser 10 years ago, is in the heart of downtown and is the subject of a special report by Loni Nannini. She writes, “Kaiser’s portfolio includes the $20 million headquarters for Hexagon Mining in Downtown Tucson, the $62 million University of Arizona Student 4 BizTucson < < < Fall 2024

Fall 2024

Volume 16 No. 3

Publisher & Owner

Steven E. Rosenberg Brent G. Mathis

Creative Director

Jay Gonzales Tara Kirkpatrick Loni Nannini

Editor Emeritus

Donna Kreutz

Contributing Editors

Contributing Writers

Success District, the $29 million renovation of the UA Chemistry Building, and the $40 million Tucson GEICO office.

Other projects include Pima JTED Innovative Learning Center at the Bridges, Hughes Federal Credit Union, Tucson Electric Power and many more.”

This edition also contains a special report on the Town of Sahuarita, written by Christy Krueger and Tara Kirkpatrick. Krueger writes, “The Town of Sahuarita, set in the scenic desert vistas of Southern Arizona, has come a long way in the 30 short years since incorporating in 1994, in large part due to the insightful planning by its early leaders. They laid out a vision that prioritized community, family and culture–all factors that have helped this bedroom community blossom into what it is today– a well-governed, inclusive town with top education, a quality lifestyle and a solid base for corporate and business growth.”

In this issue, we also celebrate 30 years of Tech Parks Arizona, which has yielded a $2 billion annual economic impact on the region. Writer Romi Carrell Wittman delivers a thorough roundup of its successes over three decades.

And speaking of anniversaries, April Bourie writes that our iconic La Encantada marks 20 years here as Tucson’s luxury retail center.

We hope you enjoy this issue. As always, we are grateful for our loyal readers, our advertisers and our team, committed to exceptional journalism and cutting-edge design and photography.

April Bourie Rodney Campbell Jay Gonzales Tara Kirkpatrick Tiffany Kjos Christy Krueger

Thomas Leyde Loni Nannini Dave Perry Steve Rivera Valerie Vinyard Romi Carrell Wittman

Contributing Photographers

Chris Mooney Ché Wilson

Kathleen Dreier Dean Kelly Brent G. Mathis BizTucson News Update (Email Newsletter)

Brent G. Mathis Tara Kirkpatrick

Contributing Technology Director

Mike Serres

Contributing Project Coordinator

Maricela Robles

Member:

American Advertising Federation Tucson DM-50 Metropolitan Pima Alliance Oro Valley Chamber Southern Arizona Leadership Council Sun Corridor Inc. Tucson Metro Chamber BizTucson Magazine Issue 4 (ISSN 1947-5047 print, ISSN 2833-6739 online) is published quarterly for $16 per year by Rosenberg Media, LLC., 4729 E. Sunrise Dr., PMB 505, Tucson, AZ 85718-4534. Periodicals postage pending at Phoenix, AZ, and additional mailing offices.

POSTMASTER: Send address changes to: BizTucson Magazine, 4729 East Sunrise Dr., PMB 505, Tucson, AZ 85718-4534 © 2024 All rights reserved. Reproduction in whole or in part without written permission is prohibited.

Opinions expressed in columns or articles do not necessarily reflect the views of the publisher.

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Steven E. Rosenberg Publisher & Owner BizTucson

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Steve Rosenberg 520.299.1005 or 520.907.1012 steve@BizTucson.com

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BizCONTENTS

FEATURES COVER STORY: 30 38 42 46 48 50 54

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BizSPORTS Arizona Sports Enterprises: New Entity for University of Arizona Athletics

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BizCOMMUNITY United Way of Tucson and Southern Arizona

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BizLETTER From the Publisher

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BizLEADERSHIP University of Arizona’s New President: 156 Suresh Garimella

BizAWARDS Special Needs Solutions Honored

by Social Venture Partners

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BizSPORTS Snoop Dogg Brings the “Juice” Sponsorship Puts Arizona Bowl on Global Stage

158

Oro Valley Chamber of Commerce Awards

159

BizCHARITY Rotary Club Classic Car Show

160

BizCOMMUNITY Long Realty Cares Foundation Reaches $4 Million in Donations

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BizRANKINGS On The Radar

83 86

BizAWARDS Tucson Electric Power Net Zero Hero Awards SMALLBiz Piece by Piece Wear

BizMILESTONE Tech Parks Arizona Celebrates SPECIAL REPORT 30 Years: $2 Billion Annual Economic 67 Impact on the Region BizCONSTRUCTION New To Market Update: Noteworthy Projects

92 96

SPECIAL REPORT 2024

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BizWORKFORCE Jim Click, Pima Community College Partner to Fast-Track Technicians

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BizMILESTONE La Encantada Celebrates 20 Years as Region’s Luxury Retail Center

ABOUT THE COVER DOWNTOWN MOMENTUM Creative Design by Brent G. Mathis Photography by Dean Kelly Skypod Images

THE REGION’S BUSINESS MAGAZINE

JKAISER

BizDEVELOPMENT Ari on 4th: $130 Million Apartment Project Opens Near Downtown

WORKSPACES

BizLEADERSHIP 104 Jeffrey P. Nasse is New Pima Community College Chancellor

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VOLUME 16 NO. 3

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DEPARTMENTS

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DOWNTOWN MOMENTUM The ROI of RIO: Rio Nuevo’s Success for Revitalization Wine & Dine: Eateries Offer Flavorful, Fun Vibe Living Large: Live, Work and Play Sun Link Streetcar at 10: $4.9 Billion in Transit Investment Tucson Museum of Art Marks 100 Years El Tour de Tucson Chooses Downtown for Start, Finish Children’s Museum Tucson Gets $1 Million Grant from Angel Charity for Children

FALL 2024

JKaiser Workspaces: Decade of Design

DECADE OF DESIGN www.BizTucson.com

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113 SPECIAL REPORT 2024

THE REGION’S BUSINESS MAGAZINE

TOWN OF SAHUARITA

Town of Sahuarita: 30 Years of Growth

30 YEARS OF GROWTH

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BizLEADERSHIP

University of Arizona Names New President Suresh Garimella Suresh Garimella has been chosen as the next University of Arizona president and will begin on Oct. 1, after the Arizona Board of Regents approved his contract.

“The board is proud to welcome Dr. Garimella to Arizona,” said ABOR Chair Cecilia Mata. “We have high expectations for both the University of Arizona and its new president. He is a tireless champion for students and has the experience, vision and steadfast leadership needed to guide our state’s oldest university into the future.”

Garimella has already hit the ground running, meeting with campus and community members.

“It is an honor to lead the University of Arizona. I believe strongly in the university’s land-grant mission to educate a talented and diverse student body and serve the state of Arizona,” Garimella said. “The U of A’s reputation for 18 BizTucson < < < Fall 2024

world-class research and innovation, academics, athletics and the arts is a result of the incredible work of faculty, staff, students, alumni and friends, and I cannot wait to join the effort.”

The board action follows a comprehensive national search fueled by the work of the UA Presidential Search Advisory Committee and informed by robust community feedback. Over the last five months, the 18-member committee met numerous times to gather feedback from the campus and community and vet all prospects in search of a leader with the qualities and experience needed to lead Arizona’s land-grant institution.

“Dr. Garimella’s strong emphasis on student success aligns with the University of Arizona community’s priorities,” said Melanie Hingle, UA professor of nutritional sciences and wellness and a member of the search committee. “As

a fellow scholar, our new president possesses the vision, experience and skills to tackle our challenges and lead the U of A to new heights of excellence, access and impact.”

Garimella is celebrated in higher education for his innovative leadership, his profound commitment to the land-grant mission, and an exceptional record of putting students first. He most recently served as president of the University of Vermont, and before that, as executive VP for research and partnerships at Purdue University. He is not only a highly cited scholar, researcher and professor of mechanical engineering, but he also helped increase and strengthen the research enterprises at both schools.

Garimella succeeds UA President Dr. Robert C. Robbins, who has led since 2017. Robbins will remain in his role until Garimella begins.

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Snoop Dogg Brings the ‘Juice’ Sponsorship Puts Arizona Bowl on Global Stage

By Steve Rivera In the eyes of Kym Adair’s teenage daughter, mom has been just “kinda cool” all these years. Then, she started rubbing elbows with Snoop Dogg, the world-famous rap artist and media personality who has signed on as the primary sponsor of the Arizona Bowl.

“She’s 18 and now thinks I’m super cool because I’m having conversations 22 BizTucson < < < Fall 2024

with Snoop Dogg,” said Adair, the bowl’s executive director. “She can’t believe it.”

The Arizona Bowl, with Adair and her local staff, has caught lightning – er, gin and juice – in a bottle, er can, for 2024 with the game now called the Snoop Dogg Arizona Bowl presented by Gin & Juice by Dre & Snoop.

As Snoop said, “I’m bringing the juice” to college football.

It’s the first bowl game to have an alcohol brand as a presenting sponsor and it comes with the added visibility of one of pop culture’s biggest stars.

The Arizona Bowl, Tucson and all involved have become super cool now that ubiquitous D-O-Double-G has come www.BizTucson.com

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on to help promote his brand and the game.

As he said when he announced the game, “I’m taking my talents to Arizona – believe me, Arizona baby. I’ll be there, will you be there?”

The game also comes just a few months after his gold-medal gig at the Paris Olympic Games where NBC paid him for various appearances at Olympic venues.

He’ll bring his unique style, given he’ll be in the booth to help with color commentary. He was a hit at the 2024 Olympic Games and will likely be the same in Tucson this December.

“It’s been an unexpected but welcome boost to our brand by proxy of the fact that the next sporting event that America will be able to get their fix of Snoop on the mic and with the people, will be right here in Tucson during Bowl Week 2024,” said Eric Rhodes, Arizona Bowl’s VP of communications.

Arizona Bowl officials are hopeful he’ll attract a curious audience given Snoop Dogg’s ability to transcend the game and the generations of fans. www.BizTucson.com

Since announcing the event in early summer, there’s been nothing but positive vibes for the game, which will be played Dec. 28 at 2:30 p.m. at Arizona Stadium. The game pits teams from the Mountain West Conference and the Mid-American Conference.

When the deal was announced in

“

When you are working with a partner who has more than 80 million Instagram followers it’s pretty fantastic.

”

– Kym Adair Executive Director Snoop Dogg Arizona Bowl presented

by Gin & Juice by Dre & Snoop

early May, there were more than 4,500 mentions and a reach of more than 2 billion, locally, nationally and in Canada about the game.

“When you are working with a partner who has more than 80 million Instagram followers it’s pretty fantastic,” Adair said. “The news has been all over the world.”

Rhodes said the initial coverage has led to unparalleled social media attention.

“Those numbers don’t include his X, Facebook and other social media platforms,” Rhodes said. “The image of Snoop Dogg putting on a bucket hat with our Arizona Bowl logo, and mentioning Tucson specifically, placed our name and our game in front of over 100 million social media followers in one post.”

As for the love in Canada, well, Rhodes had no explanation only to say, “We will absolutely take our brand becoming international.”

From the likes of ESPN’s Stephen A. Smith to other national media figures to continued on page 24 >>> Fall 2024 > > > BizTucson 23

PHOTOS: COURTESY ARIZONA BOWL

1. Kym Adair, Executive Director Snoop Dogg Arizona Bowl presented by Gin & Juice by Dre & Snoop 2. New Helmet 3. Gin & Juice by Dre & Snoop CEO, Patrick Halbert, signing record 4. The Arizona Bowl’s Blue Blazers, volunteers who support the event.

BizSPORTS

The Wyoming Cowboys celebrate their 16-15 win over Toledo in the 2023 Arizona Bowl, decided when kicker John Hoyland, 46, hit a game-winning field goal as time expired. continued from page 23 EA Sports having an Arizona Bowl simulation on its college football video game platform, the excitement has been tremendous.

“It’s amazing to see how far-reaching this partnership has been,” Adair said. “Everyone is really excited about the partnership. It’s been awesome to see how far the message about the game has gone in a short period of time.”

It’s opened sponsorship opportunities with national companies curious about joining in on the fun. Plenty is planned, including a youth all-star game, something with which Snoop has a tremendous background given he’s had a youth league in California.

And for the first time in any bowl game, participating players will be getting NIL − name, image and likeness − deals, meaning they will get paid to do public service while in Tucson.

“Snoop really wants the game to be the first for that,” Adair said. “There will also be a few more activities that will be announced (soon) because of it. It’s been exciting all around.”

Local officials appreciate the special name recognition for the city.

“With its beautiful surroundings, Tucson is the perfect place to host the Snoop Dogg Arizona Bowl,” said Tucson Mayor Regina Romero.

“College athletics brings us together and are such an important part of our identity as Tucsonans.

“I am looking forward to welcoming our guests from across the country who are excited to experience a college bowl atmosphere and all the natural beauty, history, arts, culture and food that Tucson has to offer.” continued on page 26 >>> 24 BizTucson < < < Fall 2024

Giving a ‘Core Value’ for Arizona Bowl

By Steve Rivera Where would some Tucson nonprofits be without the help of the Arizona Bowl?

Not where they are currently.

So many have been helped through the years.

Make-A-Wish Arizona was able to use its money to cover a portion of the cost of a wish.

“We at Make-A-Wish Arizona were honored to have received a grant in 2023 from the Arizona Bowl to help grant life-changing wishes to critically ill children in Southern Arizona,” said Rob LaMaster, region director for Southern Arizona. “The Arizona Bowl continues to have an incredible impact on the Tucson and Southern Arizona community.”

Impact has been felt throughout the community and is still the only bowl game that gives 100% of net proceeds to local charities.

The bowl has donated an estimated $5 million to a variety of charities since 2015.

“Giving back to charity has been a core value of the Arizona Bowl since its inception,” said Kym Adair, the bowl game’s executive director. “Before every decision we make, we consider

how it affects our ability to give back. Our Board, Blue Blazer Committee and staff are all motivated by generating meaningful impact for our community and local charities. It’s a joy to work for an organization that endeavors to do so much good for its community.”

Banner University Medicine felt it first-hand.

“The Diamond Children’s Medical Center Play Zone received a generous contribution from the Arizona Bowl, thanks to its commitment to give back to the Tucson community,” said Rebecca Ruiz Hudman, senior regional marketing and public relations manager. “Their contribution helped us meet our goal to build the Diamond Children’s Play Zone giving our pediatric patients a space to heal through therapeutic play.

“In addition, each year, Arizona Bowl teams, cheerleaders and mascots visit Diamond Children’s the week of the bowl, and last year, the teams delivered teddy bears which were distributed to our pediatric patients who had an opportunity to meet the players and pose for photos.”

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BizSPORTS

“

I can’t wait to see the energy he brings to the bowl this year.

– Mark Irvin Founder, Arizona Bowl

continued from page 24

”

Felipe Garcia, president and CEO of Visit Tucson, agreed.

“We are excited to see the Snoop Dogg affiliation with the Arizona Bowl,” Garcia said. “For us, the bowl has been a great way to bring visitors to Tucson, during a time that historically has been ‘soft.’ We hope that the excitement we see outside of Tucson is also reflected in our community, since the bowl supports many nonprofits in our community.”

One of the bowl founders, Mark Irvin, was thrilled about the sponsorship. “Snoop is a well-known and universally loved musician and businessman who loves football, charitable giving and creative thinking. Those attributes align perfectly with who we are as a bowl, making Snoop an ideal collaborator. I can’t wait to see the energy he brings to the bowl this year. Hats off to Kym Adair, our executive director, for being the brain trust on this. She continues to amaze me.”

Adair just celebrated her sixth year as the bowl game’s executive director, seeing it go from the Nova Home Loans Arizona Bowl to the Barstool Sports Arizona Bowl and to what it is today – a much-talked-about event where national media has taken interest.

“It has definitely pushed us into the forefront of the bowl game conversations,” she said. “I think bringing this creative, exciting, new approach to a bowl game has definitely quelled some of that because this is something people are really excited about. People are talking about the bowl game, and it’s definitely pushed us farther into conversations of bowl games.”

How did it all happen? In March 2021, the Arizona Bowl formed its partnership with Playfly Premier Partnerships, a division of Playfly Sports, and after the conclusion of the Barstool sponsorship, the Snoop Dogg possibility was mentioned.

“I said, ‘Put me on the phone with Snoop – this would be incredible,’ ” Adair said, when she first heard of the possibility. “A terrific opportunity because I thought we were already doing things that would align with him as it relates to football, the charitable giving we do … we felt it would resonate in an authentic way.”

Biz

SNOOP DOGG ARIZONA BOWL PRESENTED

BY GIN & JUICE BY DRE & SNOOP

BizEVENT

Saturday, Dec. 28, 2:30 p.m. Arizona Stadium thearizonabowl.com 26 BizTucson < < < Fall 2024

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The ROI of RIO

Rio Nuevo Sets Successful Path for Downtown Revitalization

By Jay Gonzales

PHOTO BY DEAN KELLY

D

owntown Tucson revitalization, and its massive undertaking over the last 10 years, has been about more than return on investment – or ROI − for those who have brought the city’s core back to life.

One might say Tucson has a proverbial bounce in its step thanks to the developers, business leaders, state and local governments and community organizations that have all collaborated to create a hip downtown with hundreds of millions of dollars in investment.

The dollar amounts are staggering but so is the change that has taken place downtown, particularly for those who have been here 10 years or longer and have witnessed the dramatic revitalization.

The Rio Nuevo Tax Increment Financing District – or TIF – was approved by voters in 1999 for the express purpose of revitalizing downtown, but it had a troubled start. More than $230 million was collected and spent through roughly 2009 with little to show for it, generating a collective frown from the Arizona Legislature. continued on page 33 >>>

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AC MARRIOTT

75 E. BROADWAY CATERPILLAR

THE MONIER DOUBLETREE BY HILTON

THE MARIST

THE FLIN

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D O W NBizT O W N DOWNTOWN

“

Our model now is no longer that government does everything.

We partner with private-sector developers.

”

– Fletcher McCusker

Chair Rio Nuevo

continued from page 30 The legislature seized control of the TIF from the city of Tucson in 2009 and after years of litigation to resolve some issues, it appointed a board of directors reporting to the legislature in 2012. Local businessman Fletcher McCusker was appointed as its chair, and the legislature demanded immediate results.

This time, they came in spades.

“I think the thing that matters to them is economics,” McCusker said of the legislature. “It’s not rankings or popularity or livability or walkability. They’re looking at straight-up numbers.”

Since 2012, McCusker said, Rio Nuevo has invested $108 million in TIF funding into downtown projects which has generated more than $1.2 billion in private investment made into hotels, restaurants and bars, office buildings and other amenities.

Independent audit reports are now required by the legislature every three years. The last one, completed in 2022, showed that during that three-year period, for every dollar Rio Nuevo had invested into downtown, the return was $10 in private investment, McCusker said. www.BizTucson.com

The audit “identified us as one of the most effective tax districts in the United States,” he said. “That’s high praise coming from where we were. Our model now is no longer that government does everything. We partner with private-sector developers. That’s a huge piece of the return.”

The private investment dollars add up fast when looking at the major downtown projects.

And, as the businesses and activity have picked up in the Rio Nuevo District, so has the sales tax revenue, some of which goes into the coffers of the State of Arizona, and some of which, through the TIF, comes back to Tucson for reinvestment in downtown.

In the 2012 calendar year, Rio Nuevo collected just over $10 million in TIF funds. By 2023, annual collection of TIF funds had nearly doubled to just under $18 million.

The AC Hotel Tucson Downtown, the first new hotel built downtown in 40 years and built and operated by developer Scott Stiteler, was one of the first “gamechangers” in the revitalization.

It had a total building cost of $32 million with a $7.7 million boost from Rio Nuevo in the form of tax rebates. But that level of investment came only after Stiteler and his partners had dipped their proverbial toe into downtown and renovated some apartments and opened Hub Restaurant & Ice Creamery and Playground Bar & Lounge − neighboring establishments at East Congress Street and Fifth Street.

“While some people were saying, ‘Let’s go big…let’s build a hotel,’ I was in the walk-before-you-run camp to make sure that anything I promised would happen and not be delayed or half-realized,” Stiteler said.

As the hotel project took shape, activity was mounting. The Tucson Arena was undergoing its renovation, the start of a $65-million investment into the Tucson Convention Center. The streetcar, at a total cost of more than $200 million, was approved as part of a long-term transportation plan of the Regional Transportation Authority and went into operation in 2014.

Stiteler began to delve into the hotel idea. But it wasn’t just about the investment of dollars and potential for a

return, he said.

“I probably spent less time thinking about ROI and more time thinking about being a part of something that had lots of potential and is interesting, fixing − for lack of a better word – a broken area,” Stiteler said. “If I would have spent more time on the cost/benefit analysis and return on investment, it probably would have scared me away.”

The ball was now rolling and more began to happen.

Caterpillar’s Surface and Mining Division, with its 1,100 employees, moved into town with a $50-million building built by Rio Nuevo on city-owned land that was deeded to Rio Nuevo in litigation that took place after 2009. That development brought added life to the Mercado District on the west side of Interstate 10, south of Congress Street.

By that time, The Gadsden Company was all-in in the Mercado District with the $36 million Monier mixed-use project with 122 residential units on South Avenida del Convento south of Congress Street. The $140 million Bautista, a 256-unit mixed-use project on the banks of the Santa Cruz River, is currently under construction and expected to be completed fall 2025.

To help ensure the viability of both of those projects and the Mercado District continued on page 34 >>>

“

Rio Nuevo was critically important at getting those venues up.

”

– Omar Mireles

President HSL Properties

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BizDOWNTOWN

FOX THEATRE continued from page 33 as a whole, Gadsden invested $3.2 million into the streetcar project to make sure the line reached the area instead of ending at the freeway.

“The certainty of the modern streetcar being funded was critical,” said Adam Weinstein, president and CEO of The Gadsden Company. “It was a major catalyst for our interest in investing in that area.”

HSL Properties pumped in $80 million to build The Flin, a 245-unit residential project on the footprint of the old La Placita Village at the southwest corner of Broadway and Church Avenue, just north of the convention center.

“We already owned the land and we wanted to do something productive with it,” said HSL President Omar Mireles.

“But we had to be convinced that the market was going to be attractive to residents.

“We knew there was a lot of excitement about the activities downtown.

Rio Nuevo was critically important at getting those venues up, and Downtown Tucson Partnership was doing a lot to beautify the area to foment the business and entertainment down there.”

The Doubletree Hotel built on the TCC property was helped along with $2.5 million coming from Rio Nuevo tax rebates.

Looking back, though, it was a close call for Rio Nuevo to even be able to continue its work after the early troubles. When the new board was appoint34 BizTucson < < < Fall 2024

ed by the state in 2012, it was given six months by the legislature to show some progress with the millions in TIF funds that had been generated for investment downtown, McCusker said.

He said the board looked for an obvious and necessary project to kickstart revitalization and to demonstrate a credible use of TIF funds. The TCC, and specifically the Tucson Arena, was it.

“We said that should probably be job one for us,” McCusker recalled. “Let’s do something in the arena itself that will

“

They did a fantastic job of getting so much out of the amount of money they put in.

”

– Glenn Grabski

GM Tucson Convention Center

at least attract people back. So we did.”

“It was high stakes,” said Phil Swaim, whose company, Swaim Associates, was the architect of the arena renovation as well as a number of other downtown projects. “Tucson had to be able to come up to the next level and this was one of those key first steps that needed to happen to be able to make it work.”

The price tag for the arena alone was $13 million, but its real value was in the fact that Rio Nuevo could show something was happening downtown not only to convince to the legislature to not shut down the TIF, but to also provide a reason for more investment and for people to start coming downtown for something other than work.

“It had to be done just to make it viable again,” said Glenn Grabski, general manager for SMG, which was hired to run the TCC. “They did a fantastic job of getting so much out of the amount of money they put in. I’m extremely grateful that they did and everything that they’ve done here because it gives me something to sell.”

And that’s what Tucson now has, a downtown that sells.

More than three dozen restaurants and food establishments have been helped by Rio Nuevo. The construction jobs are in the hundreds, if not thousands. People are working and living there. There are now nearly 1,000 hotel rooms in and around downtown within continued on page 36 >>> www.BizTucson.com

BY THE NUMBERS

$2 Billion of Economic Impact through Rio Nuevo RECENT SELECTED PROJECTS 44 E. Broadway The Peach-Dabdoub partnership renovated this multiuse building into new, upgraded office space and penthouse condos.

Completion - 2017 Rio Nuevo Investment - $4.5 Million Bautista One of the biggest projects in the history of the tax increment district, Bautista will include 16,500 square feet of retail space, 253 residential units and a restaurant.

Completion - TBD Rio Nuevo Investment - $7.25 Million Indian Village Trading Post Rio Nuevo purchased the historic Indian Trading Post building at Congress and Scott. It will be developed

by Fenton Investments into a space with a restaurant, bar and live entertainment.

Completion - TBD Rio Nuevo Investment - $2 Million Julian Drew Lofts The project in the historic Julian Drew block includes 3,350 square feet of ground-floor retail and 44 loft rental units with 160-foot ceilings.

Completion - 2022 Rio Nuevo Investment - $1.75 Million Leo Kent Hotel The beautiful Leo Kent Hotel, a Marriott Tribute brand, is located inside the 23-story tower at 1 S. Church Ave. It has 150 rooms, 1,500 square feet of meeting space and a restaurant and fitness center.

Completion - 2023 Rio Nuevo Investment - $1 Million Tucson Convention Center Capital Improvement Project This massive project included renovation and expansion of convention spaces and meeting rooms, music hall renovation and upgrades, technology enhancements and new arena upgrades.

Completion - 2022 Rio Nuevo Investment - $65 Million

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continued from page 34 the Rio Nuevo District with one more, the long-vacant Hotel Tucson at Broadway and Granada Avenue, in the works to be renovated and reopened by HSL Properties in the relatively near future.

The Fox Theatre, which underwent a renovation and reopened in 2005, is now undergoing a major expansion to enhance its status as a major downtown entertainment venue.

In 2022, Rio Nuevo sold the theatre to the Fox Tucson Theatre Foundation for $100 to give it the ability to use the building for future financing. The foundation was able to purchase two properties adjacent to the Fox for the expansion, which is planned to include dining space, a rooftop bar, expansion of the lobby and a new entrance.

Rio Nuevo has committed to contribute $2 million in matching funds for the project with a cost estimated to be in the area of $21 million.

“We’ve set forth a bold vision, one that we believe will secure the legacy of the crown jewel of Tucson as not only

36 BizTucson < < < Fall 2024

an iconic, historic building, but also as an enduring, flagship arts organization at the heart of Downtown Tucson,” Fox Foundation Board President Brent Davis said at the 2023 announcement of the purchase of the adjacent properties.

And at 75 E. Broadway, a project that reached the planning and rendering stages as a high-rise office building but fizzled because of COVID, is back on after an Oregon developer, Obie Companies, developed an interest in Downtown Tucson.

Obie Companies was selected by Rio Nuevo to develop the property through a Request For Proposal process.

“They’ve been following Tucson and are excited about the energy and the enthusiasm. They want to participate,” said Swaim, whose firm has been hired as the architect. “I think they see they can make a difference here. You can’t have the same impact if you go to Chicago as you can here in Tucson. They also see that financially and businesswise, they can be successful here in Tucson.”

The company is looking at building a

boutique hotel with retail and residential, including what it calls a “festival alley” with retail, restaurants and bars.

The building itself is expected to be between seven and 13 stories tall. Two local developers, Peach Properties and Dabdoub Investments, are minority partners in the project.

Swaim Associates is just one of many companies that have benefited from the downtown momentum. In addition to the arena, Swaim was the architect of some of the major projects including the AC Marriott, the Doubletree at the TCC and the new Greyhound bus terminal.

“It feels so good to be able to help make an impact on Tucson and who we are,” Phil Swaim said. “We certainly want to envision ourselves as architects that are more than just somebody who you can come to and get a set of blueprints to be able to build a building.

We’ll partner with you to really make a difference, step out and try and do something a little bit extraordinary. It’s felt really, really good to be able to help make that difference.”

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THE MONICA

LA CHINGADA

BATCH WHISKEY AND DONUTS

LE MACRON

BLUE FRONT

LA ESTRELLA BAKERY

EMPIRE PIZZA EXPANSION PLAYGROUND

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REILLY CRAFT PIZZA & DRINK

&

Wine Dine Downtown Eateries Offer Flavorful, Fun Vibe

By Jay Gonzales

CHARRO STEAK

KAVA DEN

HUB RESTAURANT

Opening a restaurant anywhere is always a gamble, but that hasn’t stopped dozens of entrepreneurs from doing so in Downtown Tucson, creating a vibe and a food mecca not seen there likely ever.

Young and old, established and newcomers, restauranteurs saw opportunity in the momentum generated in the mid-2010s by the Rio Nuevo Tax Increment Financing District, the modern streetcar on the way, and a confidence that downtown revitalization was real.

For some of the young − the Fenton siblings, Tyler, Courtney and Zach − all those factors were fine and well. But the family that grew up in Tucson saw more when they purchased the old Reilly Funeral Home in 2011 and converted it to a chic pizza restaurant on Pennington Street and Scott Avenue. It opened in 2012. The family also has a second downtown restaurant, BATA, at 35 E. Toole Ave. The Fentons knew the streetcar was on the way, but when Reilly Craft Pizza & Drink opened, it was still two more years before the streetcar would start moving thousands of potential diners into downtown. They just sensed opportunity.

“I’ve lived here my entire life,” said Tyler Fenton. “The only time I came downtown was to maybe go to a concert. You’d come in, you’d get out. We were excited to be a part of helping to bring some life downtown and revitalize our downtown.

“Restaurants in general are very risky. I think you just maybe chalk it up (to the fact) we were super young. We were excited.”

Reilly is one of more than 30 restaurants in the Rio Nuevo District that have received some of the nearly $167 million investment into downtown through the TIF formed in 1999.

Not so young and new in the restaurant business is the Flores family, whose El Charro Café is an icon, not only downtown, not only among Mexican restaurants, but for all of Tucson.

El Charro, at 311 N. Court Ave., sits about a block outside of the Rio Nuevo District and hasn’t been able to partake in TIF funds, but continued on page 40 >>>

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BATA

TABU BAR AND RESTAURANT continued from page 39 the Flores family opened three restaurants inside the district. They recently combined two of them − Charro Steak and Charro del Rey − into one at 178 and 188 E. Broadway. The third restaurant is The Monica, at 40 E. Congress, named for Monica Flin, matriarch of the El Charro brand, who started the business in 1922.

Ray Flores, president of Flores Concepts, the umbrella company for the family’s restaurants, has a perspective that recognizes the progress and the excitement downtown, but also encourages more strategic thinking, planning and collaboration.

Some of that is happening now, Flores said.

“If that continues, and (Rio Nuevo) continues to seek input from existing stakeholders, I think that’s good,” Flores said.

“It’s hard for me not to look at it from a 100-year-old lens,” he said. “I’m really happy with the big work that Rio Nuevo did. Now, I feel like it needs to be a little more surgical. We got the cancer out so how do we sew this back up so that we have a long life.”

Another who brought life to the downtown restaurant business, developer Scott Stiteler, opened two estab40 BizTucson < < < Fall 2024

lishments side-by-side, Hub Restaurant & Ice Creamery and Playground Bar & Lounge. Both sit across the alley from the AC Hotel Tucson Downtown, which Stiteler also built and operates.

Stiteler and new partner Regan Jasper recently added Corbett’s, a bar and grill featuring pickleball courts at 340 N. Sixth Ave. and inside the Rio Nuevo District, to the portfolio.

As with the Fentons, Hub and Playground were a roll of the dice for Stiteler, in that they were established well before the pivotal streetcar began operating in 2014, and the landmark AC Hotel opened in 2017.

Launched in 2009, the Hub and Playground were nonetheless instrumental in establishing what many call a “vibe” downtown with the type of restaurants and bars that hadn’t been seen in the area, maybe ever.

“We didn’t just come in and put fancy light bulbs and paint the wall a new color, put new upholstery on old chairs and open with a good menu,” Stiteler said. “We got a 100-year-old space and started over. It felt warm and comfortable and inviting. It just felt right. We caught lightning in a bottle.”

The lightning has now extended to Corbett’s on Sixth Avenue – literally on

the other side of the tracks. Corbett’s sits in a 90-year-old building that was a lumber yard before Jasper and Stiteler made it one of the hippest joints downtown with pickleball courts, banks of televisions and bar-and-grill fare.

Stiteler and Jasper are now renovating Hub and Playground as a space to attract business from the AC Marriott and to continue to add to the vibe.

Even with all the residential properties and other developments that have sprung up downtown, the restaurants doing business there still need people coming in from outside downtown and more investment to sustain them, Jasper said.

“There’s not enough critical mass down here with residential to make it so that the people that are living downtown are filling the restaurants,” he said.

“There needs to be a reason to come down. It’s either a show, some activities going on at Tucson Convention Center, the Gem Show.

“What helps is the AC Marriott.

What helps is a new hotel getting built that physically brings more outsiders down here. But to me, it’s still a destination, so you’ve got to make the destination piece of it work.”

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DUSK MUSIC FESTIVAL

YMCA

THE FLIN

THE FL

LINDA RONSTADT MUSIC HALL

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Living Large Downtown Tucson Offers Hip Spots to Live, Work, Play

By Jay Gonzales

HE FLIN

TEMPLE OF MUSIC & ART www.BizTucson.com

Live, work and play.

It’s a mantra that fits so many facets of so many communities and can mean so many different things to different cities.

For decades, Downtown Tucson was top-heavy on the “work” part.

There were a few places to play, such as the aging Tucson Convention Center, the Temple of Music and Art, the Tucson Museum of Art and the refurbished Fox Theatre.

The “live” part – not so much.

But for about the last dozen years, business, community and government forces have joined together to turn downtown into a hub of activity where live, work and play is now a thing.

“They say that for a vibrant downtown, you have to live, work and play,” said Fletcher McCusker, chair of the Rio Nuevo board of directors, which has driven much of the development downtown with access to millions of dollars in assistance from the tax increment financing district.

“All of a sudden, things started coming together,” McCusker said. “And once you have that kind of mass, you start seeing retail, grocery stores, Starbucks, hotels.”

You also get unique activities like one of downtown’s signature events, the DUSK Music Festival. This November will be the eighth festival, bringing in an eclectic group of musicians and DJs for a two-day event on the streets of downtown around the Jacome Plaza adjacent to the Main Library.

The event combines music from a wide range of genres with food, drink and art for a festival with something for everyone.

This year’s event is Nov. 9 and 10.

Each piece of what has happened to make downtown attractive as a place to live, work and play relies on another piece.

The modern streetcar started bringing people downtown when it connected the University of Arizona and the thousands of students looking for urban living. It also helped attract restaurants and businesses with a total investment along the streetcar line well into the billions of dollars.

Downtown Tucson Partnership, funded mostly by the downtown Business Improvement District, the city of Tucson, Pima County, Rio Nuevo and donors is tasked with keeping downtown safe, clean and vibrant, and it’s doing just that, making it safe for downtown residents and visitors to walk the streets at night.

“When people walk downtown, we want it to be abundantly clear that someone is caring for downtown,” said Kathleen Eriksen, DTP president and CEO. “But it’s not just a one-time thing. Every 24 hours, we have to do it again and again.”

With so much investment going on around it, the YMCA of Tucson raised the funds for a $4 million upgrade and renovation of the Lohse Family YMCA, 60 E. Alameda St. The downtown YMCA provides a variety of services, including a place for kids of parents working downtown as well as all the signature health club amenities for those living and working there.

“Seeing the transformation of downtown was definitely a key part of it, but it was not the only factor in that decision for us,” said Kurtis Dawson, president and CEO of the YMCA of Tucson. “It was continued on page 44 >>> Fall 2024 > > > BizTucson 43

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continued from page 43

clear that with building, and the people living downtown, and everything else that’s happened, that we needed to be a part of the transformation.”

Jim Tofel, managing member of Tofel Dent Construction, managed the construction of The Flin, the largest residential development opened to date with 245 units. The challenges of the project, because of its location and footprint, were a difficult learning experience for how to build downtown, Tofel said, yet he’s ready for more.

“I love it,” he said of the opportunity to add living space downtown. “I think it’s important. I feel like we understand it. I’m looking at a handful of other projects right now that are in the development pipeline downtown and they don’t scare me.”

As Eriksen looks around the area where DTP plays a key role in downtown management, she observes the activity and sees who is living there and playing there.

“

We have young professionals that come here.

This is a really attractive space for them because it’s luxurious, it’s high-end, and it’s convenient.

There’s a lot to do downtown.

”

– Kathleen Eriksen

President & CEO Downtown Tucson Partnership

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“When I first started here, I was very intentional about living downtown because I wanted to be a downtown resident and experience it from that perspective,” said Eriksen, who took the DTP job in 2016. She sees two primary demographics living downtown.

“We have young professionals that come here. They’re new to the community and this is a really attractive space for them because it’s luxurious, it’s highend, and it’s convenient. There’s a lot to do downtown,” she said.

“Then, the people that are retiring, that are downsizing, their children have grown, they’re empty nesters, they want a beautiful space, but they also want a sense of community,” Eriksen said. “They want a neighborhood of people. They want to be able to walk everywhere. They get downtown and they don’t need a car. They’re walking around, riding the streetcar. They’re going to shows. They’re going out to eat at lovely restaurants.

“And they’re enjoying it. It is the coolest neighborhood in the city.”

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Sun Link Streetcar Turns 10

Transit Project Spurs $4.9 Billion in Investment

By Jay Gonzales The list of gamechangers is long and distinguished in the revitalization of Downtown Tucson. There have been many – hotels, restaurants, entertainment venues and a rail line.

“People use that word lightly,” said Shellie Ginn, the city of Tucson’s deputy transportation director.

But when it comes to the 10-year-old modern streetcar that shuttles people downtown, that word has meaning to the tune of $4 billion invested along a 3.9-mile line that starts at Banner − University Medical Center Tucson and runs to the Mercado District, west of Interstate 10, Ginn said.

“Mayor (Bob) Walkup, who was the mayor at the time we were putting this whole thing together, called it a ‘gamechanger’ and it was a gamechanger,” said Ginn, part of the team that developed and executed the building of the streetcar. “It’s truthful when it comes to this system.”

The streetcar had a hefty price tag of more than $200 million in federal, state, local and private funding. But considering the return on investment − not only the $4 billion in development along the line, but also its image by the community, the jobs created, and the boon in business downtown − it was a small price to pay.

“If you look at property values along the streetcar, within a block or so, they all rose at a higher rate than other properties in the same vicinity but not near the streetcar route,” said Ted Maxwell, current chair of the Regional Transportation Authority. The RTA contributed $87 million to the project. “You look at the number of restaurants that have 46 BizTucson < < < Fall 2024

been thriving downtown, the streetcar is an option for people to get there. It just leads them to it.”

The $4 billion Ginn refers to is a collection of projects that includes the roadwork to accommodate the streetcar, the hotels and other businesses that have opened along the line, and the new housing bult within striking distance and, in some cases, because of the streetcar.

The streetcar was already operating when developer Scott Stiteler built AC Hotel Tucson Downtown, which is right on the line on Broadway at Fifth Street.

But for him, it was a big piece of the downtown momentum and helped convince him to expand from apartments and restaurants to building the hotel.

“At every university, the beating heart is the downtown and we were going to be connected with the modern streetcar,” Stiteler said. “All those parts just

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started to click together, crystallize, and that’s when this downtown really began to happen.”

While there is often angst for a project that commands $200 million in mostly public funding, Ginn recalled that the streetcar had widespread support.

“I think we just got to the right time to be able to do it,” Ginn said. “When we put our advisory committee together, they were hugely supportive. Tucson was ready for it right at time that we got going.”

“The other piece that I think people have missed is that the streetcar really is a way of connecting the university with downtown” Maxell said. “It led to the ability for people to also thrive, and it reinvigorated the desire to live downtown.”

To a fresh set of eyes like those of newcomer Mikel Oglesby, hired in July as general manager of Suntran, Sun Van and Sun Link, which operates the streetcar, it’s “impressive,” he said.

Oglesby has worked for transportation departments in Detroit and Boston that have expansive rail systems – well beyond the 3.9 miles in Tucson. But even in his short time here, he has recognized the streetcar’s importance to the community.

“I think the need for the streetcar was greater here,” Oglesby said. “I think that what it did for, not only the restaurants and everything else that it’s attached to, is a lot greater here than in a lot of other locations, simply by bringing Tucson to a level that people take a look at and say, ‘Wow, I want to travel there. I want to see what this is about.’ ”

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Museum Mainstay Tucson Museum of Art Marks 100 Years

PHOTOS COURTESY TUCSON MUSEUM OF ART

By Tiffany Kjos The region’s oldest and largest museum has been a cultural beacon in Downtown Tucson thanks to the pioneering women who brought it to life, unwavering community support, and the visionaries ushering it forward.

The Tucson Museum of Art and Historic Block celebrates its centennial this year and, next spring, will mark 50 years at its current location at 140 N. Main Ave. “The museum has always been supported by individuals in Tucson who believed so emphatically that arts add to the social life, the economic level and the vibrancy of the city,” said Norah Diedrich, the museum’s Jon and Linda Ender director and CEO. “For 100 years, it really has been about the people involved and their belief in what the arts can do for a community.”

TMA, accredited by the American Alliance of Museums, will welcome more than 70,000 visitors this year – a boon for downtown, said Felipe Garcia, president and CEO of Visit Tucson and a Downtown Tucson Partnership board member.

“A visitor to the museum is very likely to go, after visiting the museum, to a restaurant,” Garcia said. “And while in Downtown Tucson, they might discover another attraction and will either come back or stay longer.”

Diedrich is excited about the downtown’s momentum, including an uptick in overnight stays. “The number of visitors traveling to Tucson and staying in the downtown area has increased, which is a positive for all of the organizations located in Tucson’s downtown.” www.BizTucson.com

Museum visitors can explore nearly 12,000 works of art spanning thousands of years, including indigenous art, art of the American West, Latin American art and modern and contemporary art.

“Someone can walk in here and see work that was made two months ago, or they can see work that was made 3,000 years ago,” Diedrich said.

TMA was founded in 1924 by three Tucson Woman’s Club members who created the Tucson Fine Arts Associa-

“

For 100 years, it really has been about the people involved and their belief in what the arts can do for a community.

”

– Norah Diedrich Jon and Linda Ender Director & CEO Tucson Museum of Art

tion. Over its history, the museum has benefitted from numerous donors, most notably I. Michael Kasser and his wife Beth, who backed a 6,000-square-foot expansion for the museum and contributed extensively to its pre-Columbia and Latin American art collections.

“This organization has hopped all over downtown,” Diedrich said. “It has rented space at the Temple of Music and Art, we spent about 50 years on Franklin Street, and we’ve changed our names a couple of times.”

It settled on Main Avenue in 1975 when the city of Tucson leased an entire block to the museum which would become the Tucson Museum of Art and Historic Block. The site was one of the original territories of the Tohono O’odham, who were among Tucson’s earliest inhabitants, and was later part of the Presidio “Art, culture, history, and heritage all intersect at this site. And that combination is exciting to people, particularly in a place like Tucson,” Diedrich said.

The block encompasses the museum, the Alice Chaiten Baker Center for Art Education and five historically significant buildings. La Casa Cordova houses the stunning El Nacimiento nativity display. Though it’s been closed since the COVID-19 pandemic, it will reopen for a Nov. 10 community block party marking the museum’s five decades on Main Avenue.

While celebrating its past, Diedrich is collaborating with community partners and others to forge its future. “We will be emphasizing the fact that this is not just an art museum – it is much more.”

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Premier Event, El Tour de Tucson Chooses Downtown for Start, Finish

By Tiffany Kjos

Everything about the nation’s top-rated El Tour de Tucson is getting bigger. And much of the renowned cycling event’s appeal is Downtown Tucson – the ride’s home base – with its new hotels, renovated convention center, and acclaimed restaurants and bars.

El Tour and its three-day Expo & Fiesta attract thousands of visitors, and downtown in-turn offers a great place to sleep, eat and enjoy Tucson’s unique southwestern vibe.

“It’s a two-way street. We’re an event that definitely brings in tourism, people from all over the world, and when we’re able

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to showcase the hotels, the riding, the taverns, the restaurants, it adds to an amazing experience,” said T.J. Juskiewicz, executive director of Perimeter Bicycling Association, the nonprofit that produces El Tour. “It’s not just a bike ride. Come for the weekend, come for the week, and experience all these great things.”

El Tour’s signature rides used to begin at various places and wind up downtown. Now, riders set off from the TCC, at 260 S. Church Ave., which just completed a $65-million renovation.

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Downtown Convention Center.

“There’s nothing better for us, an active cycling event, than to have hotels where people can come into those hotels and be able to ride their bike over to the event. That’s just fantastic,” he said.

New restaurants and bars, such as Sonora Moonshine Co., also add to El Tour and downtown’s allure, Juskiewicz said.

“There is business, commerce that is happening. We have a vibrant downtown, and the more stuff that keeps happencontinued on page 52 >>>

PHOTO: KATHLEEN DREIER

“In the past we’ve started at places like Udall Park and up in Marana, then they would ride to downtown,” Juskiewicz said.

“Now people start and end downtown. It just really puts that emphasis that this is a downtown event.”

In his four years in Tucson, Juskiewicz has already seen a huge spike in El Tour ridership, from around 5,000 riders in 2019 to 9,000 today. Juskiewicz also has witnessed great growth downtown, including the opening of the new Leo Kent Hotel, the Hampton Inn Tucson Downtown, Home2 Suites

by Hilton Downtown, and the DoubleTree by Hilton Tucson

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ing downtown, more events, different things like that, it’s going to build downtown back up.”

Es Teran is owner and CEO of Sonoran Moonshine and Borderlands Brewing Co, which are both downtown.

“Events like El Tour de Tucson are incredibly important to Borderlands Brewing and Sonora Moonshine Company,” Teran said. “Since Sonora Moonshine opened in May of this year, we’ve seen tremendous local support from our community. As the weather cools and University of Arizona students return, we notice an influx of out-of-town visitors eager to explore Tucson’s unique charm, culinary experiences and the Old Pueblo’s allure.

“We’re excited to host these visitors at both Sonora Moonshine and Borderlands Brewing, but we’re equally committed to maintaining and celebrating the strong support of our Tucson community.”

Both of Teran’s venues will no doubt see lots of spillover from El Tour’s free Expo & Fiesta, which easily sold 120 booths last year at the TCC and features food, drinks and entertainment.

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“

Now people start and end downtown. It just really puts that emphasis that this is a downtown event.

”

– T.J. Juskiewicz Executive Director Perimeter Bicycling Association

“We pretty much fill up the convention center, the big main expo hall, so that’s a good thing,” Juskiewicz said.

“We’re bringing in vendors from all over the world. A lot of them are here

to showcase what they’re doing as far as say, bike manufacturers, but we have a lot of our nonprofits that want to reach the people and just say, hey, we’re riding for this cause.”

El Tour partners with about 75 charitable organizations, including Rotary, whose members come from all over the world to ride, and have raised more than $65 million in 14 years of participating in El Tour. That amount includes a 2-for-1 match from the Bill and Melinda Gates Foundation.

El Tour is considered the biggest fundraiser in Rotary’s 100-year history, with many Rotarians returning every year to experience Tucson and raise money to stamp out polio, which is Rotary’s No. 1 objective, said Southern Arizona Rotary ride director and participant Gary Hirsch.

“It’s become a major party, and it’s actually spawned other events all around the world,” Hirsch said. “It’s just an amazing event for us every year, and 100% of the money we raise goes to polio eradication. We take nothing for our own operating costs. But without El Tour we wouldn’t have this opportunity. We could never do this if it were not an organized ride.”

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From left –

Tana Lopez

Hilary Van Alsburg Executive Director Children’s Museum Tucson

Kellie Terhune Neely 2024 General Chair Angel Charity for Children 54 BizTucson < < < Fall 2024

TO SUPPORT THIS PROJECT AND THE CHILDREN IN OUR COMMUNITY, PLEASE DONATE BY VISITING ANGELCHARITY.ORG AND CLICKING www.BizTucson.com “DONATE.”

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PHOTO: BRENT G. MATHIS

2024 Capital Campaign/Underwriting Angel Charity for Children

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Education Expansion Children’s Museum Tucson Gets Record $1 Million Grant from Angel Charity for Children Education Center

By Tara Kirkpatrick Housed in a historic Carnegie Library building, the Children’s Museum Tucson has been a downtown staple for youth discovery, education and fun for 30-plus years.

Thanks to Angel Charity for Children, it’s about to impact even more kids.

In its largest single grant to date, the organization devoted to improving the quality of life for Pima County children has committed $1 million to the museum to create a new education center with additional program space and expanded access for children from Title I schools.

“Our members were really behind this mission,” said Kellie Terhune Neely, the group’s 2024 general chair.

“This center will be adding three additional program spaces, and it will serve children through a variety of programs.

So, they’ll have field trips, after-school activities, art programs, and it’s going to increase accessibility for an additional 40,000 kids in the first year alone.”

Children’s Museum Tucson was founded in 1986 as the Southwest Children’s Exploratory Center in a small space on Pennington Street. It moved to the Historic Y on University Boulevard before finding a permanent home in the 1901-built Carnegie Library in 1991.

Its mission from the start has been hands-on, play-based learning for kids. www.BizTucson.com

The museum also has an Oro Valley branch.

The museum purchased the adjacent Scott Avenue Building in 2023, which most recently housed the Udall Founda-

“

So many people’s lives in Tucson have been touched by the Children’s Museum.

”

– Dawn Darling 2024 Vice Chair Angel Charity for Children

tion. The $1 million grant will aid the building’s renovation for the new Angel Charity for Children Education Center.

Construction is already underway and should be completed by 2025.

“Everything about this project is exciting,” said Hilary Van Alsburg, the museum’s executive director. “We have been at a pinch point at the museum in our ability to grow for many years, and we have actually had to turn people away. Because of the historic nature of that building, we are limited in that footprint.”

“So, we knew that if we wanted to be able to stay downtown, we would have to do something nearby. To be able to stay when things are getting so exciting and so much investment is going on, we are very lucky and very excited to be part of that.”

The project adds 13,000 square feet to the museum. In addition to the Angel Charity for Children Education Center, the museum’s administrative offices will relocate to the new building. Swaim Associates Architects and Sundt Construction are contractors on the project.

“The biggest part of the Children’s Museum mission is making sure that this is the museum for all children, not just those who can get there, and making sure that once they’re there, it’s an accessible space,” said Van Alsburg. “So, continued on page 56 >>> Fall 2024 > > > BizTucson 55

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continued from page 55 we’re making all kinds of accessibility improvements in this new building.”

Angel Charity 2024 Vice Chair Dawn Darling praised Van Alsburg and her team for its meticulous preparation amid the grant process. “They knocked our socks off,” she said. “A lot of worthy projects come forth to us, but they’re just not ready. But they answered every question that was asked of them at charity selection and in the general membership voting meeting. That’s an

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intimidating process, and they killed it.”

Darling added that the Tucson community, which Angel Charity depends on for fundraising, has embraced the museum as a grant recipient. “So many people’s lives in Tucson have been touched by the Children’s Museum,” she said. “Everybody has had some sort of impact that has been positive.”

The museum was the previous recipient of a $236,500 grant from Angel Charity in 2011, which helped create

an investigation station. “They’ve been a wonderful partner,” Terhune Neely said.

The new Angel Charity for Children Education Center is just part of a $15 million, five-phase expansion project for which the museum is raising funds. It includes a future Science Park, updating the existing exhibits and adding a new entrance, café and shop to the Carnegie building.

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BizAWARDS

Tucson Electric Power Net Zero Hero Awards

MEDIA PARTNER

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Tucson Electric Power Net Zero Hero Award Recipients Support a Cleaner, More Sustainable Future Tucson Electric Power is working to achieve net zero carbon emissions by 2050 while keeping energy affordable and reliable.

But we can’t do it alone: We need our customers to help us get there.

Customers can partner with us by taking simple steps to save energy and shifting usage to periods when we have more wind and solar power available. In addition to saving money, these steps reduce our community’s carbon footprint, save water, protect our environment and reduce the need for new energy resources.

We recognize our leading partners in these efforts with Net Zero Hero Awards, previously known as our Go Green Awards.

We selected winners from nominations we received from our employees and the community for local businesses, nonprofit groups, and other entities that champion sustainability, embrace innovation and make thoughtful choices about the environment.

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In the coming pages, you’ll meet the 2024 recipients of TEP’s Net Zero Hero Awards and the ways they’re inspiring change. These winners are going above and beyond, and we want to recognize their outstanding efforts.

What is TEP doing to achieve its net zero goal?

We’re working to expand our energy resources while reducing carbon dioxide emissions.

So far, we’ve achieved a 37% reduction in annual CO2 emissions from TEP’s generating resources since 2019, mainly through the retirement of coalfired power plants and the addition of new wind and solar power systems.

Our next steps along the path to net zero are outlined in our 2023 Integrated Resource Plan, which calls for 2,240 megawatts of new renewable generation and 1,300 MW of new energy storage by 2038. Our first large-scale storage facility, the 200 MW Roadrunner

Reserve system, is expected to come online in southeast Tucson in summer 2025.

Learn more about the Integrated Resource Plan at tep.com/2023-irp What can you do?

Celebrate local businesses and other entities, such as our award recipients, who are doing important work to ensure a brighter future.

You also can take small steps in your own homes and businesses to help us reduce CO2 emissions and make the most efficient use of our clean energy resources. There are easy ways to save energy – and possibly money – in the process.

By taking our Net Zero Hero pledge to save, shift or invest in smart energy, you can earn a free cape, hat or T-shirt.

Learn more and sign up at tep.com/net-zero-hero

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BizAWARDS

Net Zero Hero Conservation Partner Award

Smart Rewards Participants Help Manage Peak Consumption Managing energy demand during peak hours is an increasingly important tool to reduce the need for new generation resources, to use more of our cleanest energy sources and to avoid buying power from the market when prices are typically highest.

Last summer, we turned to customers to help reduce strain on the summer grid with a new program that provides rewards for allowing your thermostat provider to increase temperature settings temporarily by a few degrees on the hottest days.

Adriana Leyva, account manager for a local health insurance agency, was one of roughly 7,000 customers who participated. Leyva, who also participates in TEP’s solar programs, has watched other states grapple with reliability.

“TEP is offering a way to support reliable service with a program that lets us be proactive as a community,” she said.

Her two teenagers were skeptical at first, but the active family barely noticed the events. “I have shade trees and my home insulation is pretty good. I already replaced the windows, and it just wasn’t www.BizTucson.com

a big deal to us to move up a few degrees,” she said. “It was reassuring to know I also had control the whole time if I needed it.”

Leyva and other participants collectively saved enough energy across nine separate events to power the equivalent of roughly 2,300 homes.

“You might remember that 2023 was the third hottest summer on record, with record-setting temperatures in July,” said Julie Donavant, principal of energy programs. “Those conditions were perfect to demonstrate the extent to which our residential customers can work collectively to make a big difference in reducing peak consumption.”

Cooling and heating account for up to half of a typical home’s energy usage. The impact can be even greater in Southern Arizona, where extended use of air conditioning is a necessity during long, hot summers. Even an adjustment of a few degrees can make a difference.

“The program has proven that partnering with our customers during critical times is a powerful tool for energy management and environmental sus-

tainability,” Donavant said.

Post-event and summer surveys identified that participants were motivated to help support reliable energy for everyone.

Customers, who can opt out of any event by simply adjusting their thermostat, can earn rewards for their help.

Successful participants receive a $50 prepaid Mastercard and can receive an additional $40 prepaid Mastercard for each year they remain enrolled. Two thermostats are eligible, so a participant could earn as much as $180 for the first year.

“Our Net Zero Hero Awards recognize that customers are part of the solution, and that by working together through programs like this, we can achieve reliable, affordable and sustainable service,” Donavant said.

Although the program only runs during the summer, TEP welcomes new participants throughout the year.

Please visit www.thermostatrewards.com/tepbyot.

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BizAWARDS

Net Zero Hero Sustainable Partner Award

St. Francis Shelter Community Opens Windows of Opportunity A 1940s-era repurposed convent on the Sacred Heart campus offers a safe space for 10 formerly homeless men building new lives.

The men, in turn, help take care of the church grounds. Their presence has reduced vandalism on the campus.

It’s one of the many ways the St. Francis Shelter Community, working in partnership with the church, is making a difference for the community, from running a food pantry for vulnerable community members to operating a cooling center five days a week.

Every dollar counts, so it was unacceptable that conditioned air was flying right out of the convent’s original single-paned windows.

Ron Hess and his team at The Window Depot stepped in with all new energy efficient windows, ensuring the space in the Amphitheater area is comfortable for the men while preserving precious financial resources for other critical needs.

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“Before, we would run the AC all day and you almost couldn’t tell,” said Charles Dunn, the organization’s executive director. “Now, with all the new energy efficient windows, our electric costs are a fraction of what they were before, and our entire building is cool and comfortable.”

The shelter also upgraded its HVAC system and installed a more efficient drip system to save water. With a matching grant from auto dealer Jim Click, it replaced an older gas-guzzling truck with a gently used 2020 upgrade, allowing an expansion of its food distribution network.

This year, St. Francis is rehabilitating the old maintenance building on campus with plans to expand its food distribution ministry and add rooftop solar after a leaking roof is replaced.

“We take a holistic view of a sustainable and renewable future for Tucson,” Dunn said. “At St. Francis, we believe that by reaching out to our less fortunate neighbors with compassion, respect and kindness, we will make a positive difference in their lives and help make Tucson a more hospitable place to live.”

Lynne Petersen, senior director of TEP’s customer experience, commended the shelter for reducing energy consumption and carbon emissions in support of a larger objective. “The work they’re doing to rebuild lives is reflective of a broader understanding of sustainability,” she said.

“Ultimately, that kind of engagement in finding solutions to societal challenges is what will make our community as a whole that much stronger.”

Please visit www.tep.com/business-energy-solutions

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BizAWARDS

Net Zero Hero Eco-Friendly Partner Award

Off-Campus Student Housing Community Installs EV Chargers, Efficiency Upgrades College students living at the Stone Avenue Standard apartments are leaving a lighter footprint on the planet, thanks to upgrades that save energy and charge electric vehicles.

In 2023, the apartments’ managers replaced every kitchen appliance with new Energy Star-rated appliances.

They also upgraded to LED lighting, installed a high-efficiency cooling device in each air handler, sealed AC ductwork and transitioned to new electric water heaters for additional savings.

They replaced older washers and dryers with efficient models and installed new roofs with reflective coating. With water sustainability in mind, the complex also installed the lowest flow toilets available through a program with Tucson Water.

The 224-room housing community, minutes from the University of Arizona campus, added EV chargers to support residents and guests, and an electric shuttle bus.

“As a student-only community, we feel obligated to be good stewards of environmental conservation and promote www.BizTucson.com

greater awareness,” said Oliver Swan, property manager. “We were pleased to partner with TEP on a number of these upgrades, including lighting and EV charger incentives to reduce our energy footprint and promote cleaner air.”

The apartment complex qualified for several TEP energy efficiency and beneficial electrification rebates and programs that helped offset the investment costs. The complex has participated twice in TEP’s Business Energy Solutions Commercial Program, which provided incentives for high-efficiency lighting.

Stone Avenue Standard also participated in TEP’s Smart EV Charging Program, which offers rebates to commercial businesses, multifamily housing communities, nonprofits, schools and government agencies that purchase and install EV charging ports at their location. The program supports customers by providing EV charging resources, qualified product lists, and technical support to assist them on their transportation electrification journey.

“The Net Zero Hero awards recognize each of us for doing our own part in our own spheres of influence to lead the way to a cleaner, greener future.”

“We know our residents have choices in where they live. With sustainability top of mind, making these investments is not only a smart decision for our bottom line, but also positions us favorably for those who appreciate these kinds of responsible investments,” Swan said.

Camila Martins-Bekat, Principal of Beneficial Electrification, agreed.

“Stone Avenue Standard is a great example of how demonstrating a commitment to sustainability by promoting energy efficiency and EVs makes environmental – and financial – sense for companies.

This helps set them apart from other developments while offering new amenities and products to their residents.”

Please visit www.tep.com/smart-rewards

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BizAWARDS

Net Zero Hero Community Impact Award

Tucson Old Pueblo Credit Union Leverages Green Loan Program to Accelerate Investment Transitioning to a lower carbon future takes investment.

The green loan program at Tucson Old Pueblo Credit Union is helping to finance the path to reduced energy and water usage.

The local financial institution, which has been serving Tucson since 1935, helps provide loans to help residents and businesses invest in clean energy upgrades, including energy efficient appliances, electric vehicles, solar arrays, rainwater collection systems, or grass-to -turf projects.

Low- and moderate-income communities, communities of color, underbanked populations, and energy-burdened households are a particular focus for the not-for-profit cooperative, which carries the designation of a Community Development Financial Institution and a Low-Income Designated credit union.

Loans to low-income applicants comprise nearly 40% of the company’s green loan portfolio.

Sustainable Lending Manager Joanna Jackson noted that the green loan program launched in 2015 in response to a request from Technicians for Sustainability for affordable loan options that could support green investments.

“We started by seeking a solution to a community need and the program expanded from there,” she said.

Not only do the investments often help provide operational savings, she said, but they’re also an important part of improving the environment, which is important to their team.

Both company locations feature rooftop solar and xeriscape landscaping for reduced water usage. The locations are committed to recycling and the sustainable lending program is more than 99% electronic, reducing paper waste.

“Tucson Old Pueblo Credit Union is not only doing their part at their own facilities to support a more sustainable future, but importantly, is removing financial barriers to participation for all of our customers, including those with limited financial resources,” said Walter Yosin, Manager of Energy Programs.

“We applaud their work in support of energy and water conservation.”

Please visit www.tep.com/business-energy-solutions

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BizAWARDS

Net Zero Hero Efficient Partner Award

HighWire Sets a High Bar for Energy Savings When the owners of the HighWire Tucson bar had an opportunity to expand, they also had an opportunity to reconsider their impact on the planet.

It was an evolution for co-owner Nick Wayne Eggman that began when he joined the Southern Arizona Green Business Leaders program through Local First Arizona, which helps local businesses learn about clean energy solutions for their business.

At the time, the HighWire was in the process of expanding outside its venue, north of a passageway behind Johnny Gibson’s Downtown Market. When another bar south of the passageway closed during the pandemic, Eggman and his partner decided to take over the space to expand.

At first, Eggman said he was most interested in saving money, and TEP’s rebates and programs were a big factor in helping him accomplish his goals with new lighting, smart thermostats, and other measures. www.BizTucson.com

But as he learned more, including hearing about real-life examples and stories from participating businesses, he became more invested in making thoughtful energy choices to ensure a brighter environmental future.

With his newfound knowledge, Eggman went to his architect and switched to as many energy-efficient and environmentally friendly measures as possible when he gutted and redesigned the century-old building.

When the new space was unveiled in February 2022, it featured LED bulbs on tracks over the bar and seating area, as well as low-energy disc lighting in the bathroom. He maximized efficiency with TEP-recommended smart thermostats.

Beyond energy-saving measures, the bar features low-flow toilets and faucets and compostable drinking straws for the cocktails.

He has since conducted environmentally focused staff trainings twice a year, inviting TEP staff to a session in early 2024 to share more information about residential energy efficiency rebates that employees could tap into for their own homes.

“HighWire has such an inspiring story in that they not only made smart, impactful changes to their own commercial space, but they’re extending the knowledge that they’ve learned to help others make a difference, whether at work or at home,” said Kathleen Patton, TEP’s Director of Energy Programs, and Economic & Business Development.

“We’re really proud to partner with them because they exemplify what the Net Zero Hero awards are all about – taking manageable steps to build a brighter future for everyone.”

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BizPEOPLE Lisa Hagins

Lisa Hagins has been named executive director of Arizona Transportation Builders Association, a Tucson nonprofit that educates, sustains and promotes common interest in the construction industry and builds a transportation network that enriches American life. Hagins has worked in finance for several years, first in banking and then joining OneAZ Credit Union, where she became regional president in 2019.

Steve Odenkirk

Steve Odenkirk is Principal of Peritus Commercial Finance, which offers commercial mortgage brokerage and commercial finance consulting services. Odenkirk brings 40 years of expertise to his role, having served as a loan officer, Chief Credit Officer and workout officer for local, regional and national banking institutions. A licensed Commercial Mortgage Broker, Odenkirk provides access to both traditional and non-traditional lenders.

Pamela Fletcher

Automotive veteran Pamela Fletcher is the new CEO of Sion Power Corporation, a leading technology developer of next-generation batteries for electric vehicles. Fletcher brings a proven track record of electric vehicle development and deployment, which she will leverage to accelerate the company’s transition to commercialization. She succeeds Tracy Kelley, who will transition to Sion president and CSO. 66 BizTucson < < < Fall 2024

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SPECIAL REPORT 2024

THE REGION’S BUSINESS MAGAZINE

JKAISER

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Jessica Kaiser

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Creativity & Personal Touch

Impacting Workplace Culture & Environment In the past decade, JKaiser Workspaces has evolved into a powerhouse in the $579-billion global industry of commercial furnishings and design.

Since 2019, JKaiser Workspaces has twice been ranked as one of America’s fastest-growing private companies in the country by Inc. 5000. In 2020, the company was at the top of the list for fastest-growing companies in Tucson with 274% growth. The full-service furnishings and design firm is led by Founder and CEO Jessica Kaiser, who prides herself on unparalleled personalized service.

“Even as my revenue has grown, my staff stays small and that is intentional,” Kaiser said. “I like efficiency.

Sometimes when companies get too big, the client experience suffers. I like to operate very small and work hands-on with my clients.”

That clientele spans the public, private and nonprofit sectors. Kaiser has designed more than 1,300 projects of varying sizes for partners in education, healthcare, food and entertainment, financial services, mining, utilities, defense, technology and other industries.

Kaiser’s portfolio includes the $20 million headquarters for Hexagon Mining in Downtown Tucson, the $62 million University of Arizona Student Success District, the $29 million renovation of the UA Chemistry Building, and the $40 million Tucson GEICO office. Other projects include Pima JTED Innovative Learning Center at the Bridges, Hughes Federal Credit Union, Tucson Electric Power and many more.

Through her work, Kaiser has cultivated professional relationships with many local, regional and national stakeholders in the building and design industries. Frequent collaborators include Swaim Associates Architects, Bourn Companies, Sundt Construction among others.

The extensive network stems from a foundation of commercial furnishings.

“When describing my business, I lead with commercial furnishings because we really are product-based,” www.BizTucson.com

Kaiser said. “The industry is interesting in the sense that you can be a commercial designer and not procure furniture. But JKaiser Workspaces is a one-stop shop where we can assist with furnishings and every aspect of interior design − ergonomics, acoustics, lighting, artwork, architectural finishes, greenery and accessories, basically anything from the drywall in. We can create a total turnkey design package if that is what a client needs.”

Kaiser works routinely with premier manufacturers whose products feature high-end and luxury finishes and lifetime warranties.

“Jessica really has a passion for office furniture and for the design work that she does,” said Tony Ferradino, a principal for 360 Furniture Group, which has worked with Kaiser for 15 years. “She loves picking out fabrics, finishes and color schemes for her customers and getting them the best products to fit their needs.

We use her work with Hexagon Mining and Hughes Federal Credit Union as case studies on our website and showpieces if we have customers in Tucson.”

Kaiser’s extensive knowledge is a huge asset to clients who view their projects as investments in both their businesses and their employees.

“Jessica has a wide range of availability from different manufacturers and can look at design styles as well as price, and work with us to find the best solution for each client, not only aesthetically and functionally, but within their budgets,” said Michael Cuthbert, principal with Swaim Associates Architects and a frequent collaborator with Kaiser. “Maintenance is always a concern for our clients, and she knows the products that will last and provide the highest quality for the best price.”

“First and foremost, Jessica is a professional,” said Ian McDowell, VP and regional director for Sundt Construction. “She does what she says she will do when she says she will do it” continued on page 72 >>> Fall 2024 > > > BizTucson 71

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By Loni Nannini

continued from page 71 “She is very reliable and always shows up prepared with answers,” McDowell added. “We can recommend her to business partners and know the job will turn out well. She always delivers on what she says.”

Kaiser’s customer care is grounded in her creativity and problem-solving skills.

“I have always been creative, and I think my love of guiding people and helping to solve problems drew me to this field,” Kaiser said.

She said she honed those skills and her business acumen as a real estate professional after relocating from the Pacific Northwest 20 years ago.

When the residential real estate bubble burst in 2008, the mother of three transitioned into project management for a small commercial furnishings firm.

She knew immediately she had found her niche.

She immersed herself in furniture sales, taught herself AutoCAD, the prominent design software, and learned the ins and outs of operating a commercial furnishings firm. After several years, she struck out on her own with a small office in Connect Coworking in downtown.

“I had enough money saved to start my business with no debt and I said, ‘If I can’t do this in six months and be profitable, I don’t want to be doing it.’ That is not a traditional business model, but normal is not my pace. I blaze trails,” she said.

JKaiser Workspaces was profitable within the first month and business snowballed. In 2015, the company moved to a space in the basement of Bourn Companies at 20 E. Congress, cementing a mutually beneficial relationship between the developer and the designer.

Business continued to boom until the onset of the COVID-19 pandemic. By April 2020, JKaiser Workspaces had lost $1 million in anticipated revenue.

An offer to buy out her lease and the furniture in her showroom enabled her to transition to remote work and weather the pandemic.

In 2021, she again partnered with Bourn to build out a dedicated space in the vacant first floor of the building known as City Park at 40 E. Congress 72 BizTucson < < < Fall 2024

St. It was a strategic move to maximize her business profile, particularly since her client, Hexagon Mining, occupies the upper floors.

“I have always loved the energy downtown and I have always appreciated the synergy with Bourn and Hexagon,” Kaiser said. “For my 2,000-squarefoot-office, I basically get a five-story showroom because Hexagon is so great about letting me tour clients through their space.”

The working showroom gave JKaiser Workspaces its first street presence while helping Kaiser realize her philanthropic aspirations.

“I really put my mark on it and designed it exactly the way I wanted, from the dirt floors up,” she said. “I love this space, and I love working here. In addition to showcasing what we do, it provides a space for the community to come together for events and fundraisers.”

Kaiser said she is grateful for opportunities, through JKaiser’s work, to elevate corporate culture for her clients and work experiences for their employees and, ultimately, the community.

“I have built a business where I have an impact on the community, the environment and on the way people work, not just in Tucson, but around the globe,” said Kaiser.

On the design horizon, Kaiser is gratified by trends in flex working models and workspaces dedicated to general health and wellness, including gyms, yoga spaces, meditation rooms and other quiet areas.

“It is rewarding to see that many businesses are taking mental health and their overall concern for work families into consideration when furnishing and designing spaces. It has also been really cool to see the hybrid work model develop,” Kaiser said.

Ultimately, Kaiser looks forward to continued expansion of her professional network and her long-term client base.

“I want to work on meaningful projects and have partnerships of longevity,” Kaiser said. “I am strategic about the projects I take on because I know I am entering into relationships with my clients. I support them not just throughout the lives of their projects, but as years go by with the care of their furniture.”

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PIMA JTED

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Process & Communication Maximize Productivity Support from Start to Finish Ensures Customer Satisfaction, Efficiency

HEXAGON MINING

PHOTOS COURTESY JKAISER WORKSPACES

By Loni Nannini Creative, concise, customized, clientcentric: the JKaiser Workspaces approach is built around principles that deliver superior designs while optimizing wellness and productivity for clients and their work families.

“I want to maximize every budget and make sure I deliver the most impeccable designs possible while helping teams be more efficient and ergonomically comfortable,” said Jessica Kaiser, founder and CEO of JKaiser Workspaces. “This is a benefit to the health and productivity of employees and, therefore, the overall profitability of the company.”

JKaiser’s design philosophy centers around communication, Kaiser said. The process often begins with referrals from existing clients or Kaiser’s extensive professional network of architects, developers, contractors and colleagues.

Next, a programming session with the client and stakeholders clarifies project goals.

Conceptualization also involves space planning, including sizing and placement of offices, conference rooms, break rooms, flex spaces, public spaces and furniture placement.

“We talk about how they office, whether they prefer a hybrid model or a full-time workspace, and various functions of the different teams and departments, and whether people collaborate or work independently,” Kaiser said. “I want to understand their pain points and where they want to go as a company so I can incorporate that into their interior.”

Kaiser establishes a list of deliverables and prepares a design contract with an option for à la carte services. Her product-based services encompass furniture specification, space planning, project management, power planning and installation while an interior design

scope may include architectural finishes such as paint, wall coverings, flooring, lighting, art and other accessories.

One highlight is a digital presentation displaying options for “good, better and best” models at different price points.

“My clients see a good range of product so they understand that I am not leading with an agenda or quota-driven model. I want to meet all their needs for budget, timeline, aesthetics and function,” she said.

Finally, Kaiser establishes timelines and provides project management, working closely with contractors and other stakeholders to meet deadlines.

Kaiser’s efficient coordination of scheduling, product delivery and installation boosts overall client satisfaction, said Matt Dickey, project manager for Bourn Companies. A frequent collaborator with JKaiser Workspaces, Bourn has developed more than 4.2 million square feet of industrial, commercial and mixed-use real estate across the Southwest.

“JKaiser Workspaces is unique. She is relatively small, but she provides ultra highquality service,” said Dickey. “As the owner, Jessica can be flexible and she is committed to making sure that projects progress appropriately. When it comes to the install and finish, she is there working alongside the install team to ensure that everything comes together perfectly.”

Kaiser’s solution-oriented mindset is on full display at the 65,000-square-foot headquarters for Hexagon at 40 E. Congress St. For its “crown jewel,” the company envisioned an open and modern industrial feel representative of its image as a global leader in digital reality solutions that combine sensor, software and autonomous technologies. continued on page 76 >>> Fall 2024 > > > BizTucson 75

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“Jessica was great about listening to everyone, gathering varied opinions and then finding the perfect solution,” said Laura Hearron, an executive assistant for Hexagon. “A good designer hears what you are saying and fits the furniture and design to the client’s needs, and Jessica is an expert.”

Kaiser worked closely with Bourn Companies, architects and engineers to optimize space and furniture planning in the large-scale project. Kaiser also selected furniture, artwork, large-scale wall graphics, custom window film, lighting, millwork, white noise, flooring and decorative accessories. She coordinated furniture delivery via a lift to the upper floors, which required temporary closure of the streetcar line anterior to the building.

“Partnering with JKaiser Workspaces proved to be pivotal in ensuring our facility was completed on time, on budget, and without the stress typically associated with such projects,” said Nicholas Hare, VP of mining for Hexagon Mining. “Both agile and attentive, JKaiser was always flexible enough to deal with ever-changing project details and time-

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lines without sacrificing deadlines.”

JKaiser and Bourn also collaborated on construction of the 200,000-squarefoot Tucson GEICO Office completed in 2019 on a seven-month timeline.

In addition to supplying design layout and furnishings for office spaces, conference rooms, training rooms and break rooms, Kaiser sourced soft seating in flex spaces, lobbies, dining areas and the cafeteria. The non-traditional spaces give employees “a take-me-away-fromthe-office feel,” while central engagement zones in each quadrant facilitate management-employee coaching and collaboration.

“Our goal was to create a modern building that maintained an open, outdoor feel to bring energy into the space and energy into people,” said Chris Ott, site operations manager for GEICO. “Jessica was a big help in brainstorming and finalizing ideas for effective collaboration spaces. We spent a lot of time on small details.”

Kaiser’s attention to detail, guidance and experience were also key for a recent renovation for Hughes Federal Credit Union. The 80,000-square-foot facility, which functions as a back-office

location for lending and call center staff, required a customized build-out for offices, meeting and training rooms, and cubicles.

“Jessica listened carefully to the various stakeholders to conceptually understand our initial vision for the project,” said Andrew Britton, president and CEO of Hughes Federal Credit Union.

“She then guided us through a thought process that resulted in adjustments that made the finished product much more successful than we had envisioned originally. Jessica’s ability to blend our vision, practicality, and her forward-thinking gained by her experience allowed the final product to be a huge success.”

Ultimately, Kaiser is all about delivering superior design to satisfied clients in a timely, efficient manner.

“Not only am I going to hit deadlines, which I am very effective at, but I provide communication and support for my clients with their architect, contractor and vendors,” Kaiser said. “That is one of the things that really wins them over. At the end of the day, they feel supported and that feels good.”

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Philanthropy Essential to the Business Model

JKaiser Workspaces Impacts More than Clients

By Loni Nannini Jessica Kaiser is on a mission to elevate and inspire people, workplaces and the community.

For the founder and CEO of JKaiser Workspaces, philanthropy is both personal and professional.

“I believe a good business model is also a means for investment in the community. I want to focus on efficiency and profits because then I am able to have a bigger impact on the community,” Kaiser said. “Philanthropy is part of that focus.”

That philosophy is woven into the very fabric of her company. Kaiser surrounds herself with like-minded colleagues and stakeholders in the furnishings, design and construction industries, and prides herself on lifting others up as a woman-owned business.

“I approach my role as an employer with the memory of how difficult it had been to be an employee in many different roles,” Kaiser said. “I like to train people and provide the support that I often didn’t receive as an employee.”

That support extends to internships and shadowing opportunities to provide local students with exposure to a multitude of roles within a design firm.

“I got great hands-on insight into the everyday life of a project manager and interior designer,” said Olivia Del Castillo, who completed an internship for JKaiser in June 2024. “Jessica fully trusted my capabilities. She included me in meetings and phone calls. We spent one-on-one time working with software and discussing attributes and characteristics of her design projects.”

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The Northern Arizona University student said the internship spurred her motivation and reaffirmed her pursuit of a major in interior design and a minor in construction management.

“Jessica is very inspiring,” Del Castillo said. “During my internship she was more than my boss. She is open to ideas and is determined and diligent in her work, but has a soft kindness that makes her very personable and easy to talk to.”

Kaiser’s entrepreneurship is also the means to elevate women and children in the community.

“Having grown up in a family where I wasn’t necessarily protected and cared for in the way I should have been, I have empathy for children in the foster care system and otherwise marginalized kids on the cusp of society. I know what it is like to be there,” said Kaiser, who became a mom at age 19. Ten years later, she was a divorced mother of three with no family nearby. She credits a fierce innate strength with enabling her to survive and thrive and driving her to help others.

“There is just a fire in me that says, ‘We will move on and heal and be better than we were.’ I use that to help as many people as possible,” Kaiser said.

“It is so powerful to redirect a child’s life and women become so powerful when they are supported.”

Kaiser translates words into action through charitable giving to organizations including The Salvation Army Hospitality House, Beauty From Ashes Ranch, Girl Scouts of Southern Arizona, Boys & Girls Clubs of Tucson,

Tu Nidito Children & Family Services, Lapan Sunshine Foundation, Leukemia & Lymphoma Society, Planned Parenthood, Global Children’s Fund and many more.

She has also been an avid volunteer with I Am You 360, a local nonprofit dedicated to supporting youth and young adults who are in the foster care system or experiencing homelessness.

Last year, Kaiser spearheaded the firstever fundraiser to benefit the I Am You 360 Small Home Experience, Tucson’s first green, energy-efficient tiny home community for adults ages 18 to 22.

Havana Nights Prom 2023 came together on an eight-week timeline and was a revelation for the grassroots organization, said Desiree Cook, I Am You 360 founder and CEO. “We had never done a fundraiser like this before,” said Cook. “Because of who she is as a confident woman in her field and in the community, Jessica Kaiser took us to another space and place, helping I Am You 360 raise over $110,000 for our tiny home roofs.”

For her part, Kaiser is grateful for the chance to directly impact displaced youth through the I Am You 360 Tiny Home Community slated to open this fall. In addition to safe, affordable housing, the project will provide residents with opportunities for secondary education, assistance with saving for home ownership, and a holistic curriculum featuring training in financial literacy, cooking and other life skills. The goal is for unhoused youth to become “wholly healed and productive” and to end generational homelessness.

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SMALLBiz

Julie Penny

Owner Piece by Piece Wear

Piece by Piece Wear

Local Clothing Boutique Boasts Stylish, Soft Brands

By Tara Kirkpatrick There are two things immediately evident when you walk through the beautiful art deco doors of Piece by Piece Wear.

Every piece of clothing is both chic and soft.

“I walk around the markets and touch everything,” said Julie Penny, owner of the stylish women’s clothing store in St. Philip’s Plaza. “I want everything to look amazing and feel like you are wearing pajamas.”

It’s why Piece by Piece Wear has enjoyed a loyal following throughout its 35 years in Tucson. Penny has customers ordering items from as far as New York and Texas. Her Facebook and Instagram feeds are not only filled with her new arrivals, but also ecstatic reviews from first-time and longtime shoppers alike.

“My goal is whenever you get something from me, it becomes your go-to piece,” said Penny. “I want it to be like, ‘What did I wear before I had this?’”

The store is filled with luxe clothing lines such as Pure Amici, Z Supply, PJ Salvage, Cosabella and Spiritual Gangster.

She also carries richly woven, reversible www.BizTucson.com

tote bags by Ilse Jacobsen of Denmark and a selection of premium denim.

“It all starts with what I want to wear and what my friends want to wear,” she said.

A science major at DePaul University, Penny credits a stint at a designer consignment store for her fashionable fate.

“I just fell in love with fashion.” She and her husband moved to Arizona after she joked that frost began forming inside their apartment windows in Illinois.

Though they initially thought Phoenix, Tucson’s inclusive community and charm won them over. “Everyone here says hello and smiles at you.”

Penny first worked at Piece by Piece Wear as an employee, then had the opportunity to buy it roughly 18 years ago. All in all, she has been a part of the store’s history for 30 years. And she is a devoted promoter of all things local. The store is the exclusive carrier of Tucson designer Annie Hammer’s jewelry line, mosaic stones by talented local artist Kris Johnson and coveted copper candles by Vim & Vigor.

“It’s pretty amazing the friendships that have developed here,” Penny said.

“I have had customers shopping here for 10, 20, 30 years. It’s been so special to curate wardrobes for them.”

She also supports both her favorite and her customers’ favorite charities.

She sells dog toys in her store, with a portion of proceeds given to The Sanctuary Project animal rescue, where she adopted all three of her dogs. Penny has also supported Angel Charity for Children, Boys & Girls Clubs of Tucson and Tucson Museum of Art. “I love to support my clients that serve on local charity boards. You take care of your people,” she said.

“I love shopping at Julie’s store,” said Mindy Thomas, a frequent Piece by Piece shopper. “It’s my favorite place in Tucson to get cute, on-trend pieces.

I always leave with a smile on my face, spending my money locally and looking fashionable.”

Added customer and friend Lori Carroll: “Julie Penny is truly one of a kind, with an impact that extends well beyond the walls of Piece by Piece Wear. Her dedication to both style and philanthropy embodies a deep commitment to enhancing Tucson.”

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SPONSORED CONTENT

BizHEALTHCARE

4 Steps Tucson Employers Can Take to Prioritize Employee Mental Health and Create a Healthier Workforce Submitted By: Dr. Patricia Tan, Chief Medical Officer for Arizona & New Mexico, UnitedHealthcare Employer & Individual A recent survey revealed that 90% of Americans believe the U.S. is in the midst of a mental health crisis, and one-third of Americans reported they found it difficult to access help. In Arizona, the percentage of adults experiencing frequent mental distress has increased in recent years. Notably, lowacuity conditions, like stress or anxiety, account for a significant portion of behavioral health claims.

Whether low- or high-acuity, unaddressed mental health conditions can create long-term and near-term impacts in the workforce, including detrimental effects on employee motivation.

As behavioral health care needs continue to increase, many are looking to their employers for support – and employers are seeking to reduce the prevalence of mental health concerns among employees, to help nurture a healthier workplace culture.

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For benefits managers who are already designing strategies for the coming year, here are a few action items to consider:

1. Support a full continuum of care needs.

Mental and physical health are interconnected; having poor mental health can negatively impact physical health, and vice versa. Focusing too heavily on one side of the spectrum does not address the full picture of employee wellbeing, and a “one size fits all” approach to offerings can be harmful to employees. Integrate both physical and behavioral health benefits across a full spectrum of care needs to ensure your benefits strategy encompasses a holistic, whole-person approach to healthcare.

Dr. Patricia Tan Chief Medical Officer for Arizona & New Mexico, UnitedHealthcare Employer & Individual

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SPONSORED CONTENT

2. Select a network that meets members where they are.

There are still barriers to accessing care – in fact, nearly half of Americans live in areas with mental health workforce shortages. Although Arizona has seen a 47% increase in its mental health provider network since 2018, increasing the number of providers within a network is not currently enough. Virtual health options and digital tools help employers address these gaps by allowing members to access care when and where they want.

Some providers, like UnitedHealthcare, offer virtual programs aimed specifically at increasing access to care and reducing cost barriers. For example, virtual behavioral coaching provides individualized coaching and mental health support for adults experiencing symptoms of mild depression, stress, and anxiety through digital modules and one-on-one video or telephonic conferencing and messaging with trained, dedicated coaches.

3. Offer a guided experience to help employees navigate care options.

Ensuring employees feel connected and supported while navigating the health system is as important as crafting a benefits strategy that encompasses the right balance of offerings. A robust digital experience allowing employees to navigate care with a single sign-on to search for providers, pharmacies, costs and more enhances the member journey and presents more opportunities for personalization. Also, some providers offer advocacy programs to connect members to advanced care and resources, and predictive tools that help segment and identify high-risk members and make suggestions for care. For example, UnitedHealthcare provides this service to employees when they sign in to myuhc.com or the UnitedHealthcare app.

4. Reduce the stigma.

While discussing mental health has become more accepted in recent years, some employees may not feel comfortable discussing it with their employer.

Therefore, explore different avenues of internal communications, such as targeted campaigns, to highlight available resources and services, without requiring individuals to share information beyond their comfort zone.

Mental or behavioral health conditions can have a large impact on a company’s workforce and on individual employees. By designing programs with employees’ whole-person health needs in mind, employers can help nurture a healthier workplace culture, reduce workplace stigma, and improve people’s lives and productivity.

For more information, visit uhc.com.

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1. Carol Stewart, VP for Tech Parks Arizona. 2. Elliott Cheu, interim senior VP of research and innovation, University of Arizona. 3. Matt Jensen, partner with The Boyer Company, Tech Park Arizona’s development partner. 4. UA Tech Park (Rita Road). 5&6. Solar Zone, a 223-acre living laboratory devoted to testing and developing solar technologie 7. The 30-year celebration included a special myrtle tree dedication, symbolizing Tech Parks Arizona’s strong legacy and future growth.

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Tech Parks Arizona Celebrates 30 Years

$2 Billion Annual Economic Impact on the Region

IMAGES: COURTESY OF TECH PARKS ARIZONA

By Romi Carrell Wittman In the shadow of the Rincon Mountains on the outskirts of Tucson sits a sprawling 1,267-acre campus that has become one of the most dynamic hubs of innovation in the Southwest.

The UA Tech Park (Rita Road), the University of Arizona’s flagship Tech Park location, may appear simple at first glance, but what is driving behind the scenes is something extraordinary. For the past 30 years, the site where IBM first called home in Tucson has been at the forefront of groundbreaking research, technological advancement, and economic development.

As Tech Parks Arizona celebrates its 30th anniversary, it has grown far beyond its initial UA Tech Park (Rita Road) site to encompass multiple locations and programs that are shaping the future of Tucson, the UA and the world. From solar energy innovations to defense systems to artificial intelligence, the work happening at Tech Parks Arizona touches nearly every cutting-edge field of technology and research. By connecting academic researchers with industry, innovative new products and technology are born.

“Everything we do is very purposeful,” said Carol Stewart, VP, University of Arizona, Tech Parks Arizona. “We create spaces, programming and opportunities where that collision of academia, startups and industry happens.

That’s the magic of what we do. It’s the magic of the mashup.”

Elliott Cheu, a distinguished professor of physics and UA’s interim senior VP of research and innovation, said the Tech Parks are closely aligned with the university’s research mission. “With

$955 million in annual research activity, the UA is leading the way in tackling the most pressing and complex challenges of our time,” he said. “The Tech Parks are a critical convergence of research and impact as well as the path to take UA research and innovations to the larger world.”

Tech Parks Arizona Defined The “magic of the mashup” began in 1994 when the UA made the visionary decision to purchase IBM’s tech campus on the Tucson’s southeast side for $112 million. The move occurred as universities across the country were establishing research, technology and science parks to bridge the academic and business worlds.

While the UA Tech Park (Rita Road) is a key location and the most well known, Tech Parks Arizona encompasses three distinct entities: the UA Tech Park (Rita Road), the University of Arizona Center for Innovation, and the UA Tech Park at The Bridges.

UA Tech Park at Rita Road The UA Tech Park (Rita Road) houses over 100 companies employing 6,000 knowledge workers in 15 different industries. It contributes a staggering $2 billion annually to the Southern Arizona economy and contributes an estimated $52.8 million in tax revenue for the state, city and county. UA Tech Park companies also contributes $359 million in direct wages.

It also provides a strong infrastructure for the businesses that call the UA Tech Park (Rita Road) home. Calline Sanchez, VP of IBM global TSS planning and premium support and the Ari-

zona and New Mexico state leader, has worked alongside Tech Parks Arizona for many years. “The UA Tech Park at Rita provides a home for IBM Tucson that is one of the company’s major innovation hubs in data storage, cloud computing, cybersecurity and artificial intelligence,” she said. “Our partnership enables innovation incubation.”

The Solar Zone The UA Tech Park (Rita Road) location is also home to the Solar Zone, a 223-acre living laboratory devoted to testing and developing solar technologies. Launched in 2010, it’s the largest multi-technology solar demonstration site at the grid level in the United States.. The space enables solar and energy companies to operate side-by-side and research various technologies in identical conditions. The site integrates research and development, power generation and distribution, and product development. The site generates 25 megawatts of power, enough to power nearly 5,000 homes.

New Tenants Immersion Labs, a leading-edge tech company in the fields of spatial computing and artificial intelligence, expanded operations to UA Tech Park in 2024. In a release announcing the expansion, Immersion Labs’ Project Manager Dylan Cota-Robles said, “This move marks a significant milestone in our journey to revolutionize spatial computing and AI. The UA Tech Park offers unparalleled opportunities for collaboration with academic researchers, industry leaders, and fellow innovators.” continued on page 88 >>> Fall 2024 > > > BizTucson 87

BizMILESTONE continued from page 87 UA Center for Innovation Established in 2003, the UA Center for Innovation is the longest running incubator with the highest concentration of science and tech startups in the state of Arizona. UACI has supported 300 business start-ups by providing direct access to people, programming and place to help entrepreneurs take their ideas to market. With centralized resources to accelerate inventions and scale business operations, UACI helps founders overcome common start-up challenges. Last fall, UACI was assisting a record 70 start-ups.

“We have the highest concentration of startups in Arizona,” Stewart said.

“It adds to the brand of the University of Arizona as an R1 research institution.”

Many of those startups have roots in university research that are being commercialized through Tech Launch Arizona, the UA’s technology transfer arm.

For example, Paramium Technologies LLC, a startup based on UA research,

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specializes in Ground Station as a Service (GSaaS). They develop low-cost ground stations and manufacture precision satellite reflectors using a unique molding method. They received a $1 million NSF SBIR grant to advance their technology and scale production.

Since joining UACI, they have expanded lab space and are testing their technology with Steward Observatory at the UA Tech Park off Rita.

In an interview celebrating UACI’s 20th anniversary, Executive Director Casey Carrillo emphasized the organization’s unique insight into the future of scalable and sustainable businesses. “We have a front-row seat to tomorrow’s innovations. The leading-edge technologies and companies that are just emerging... we get to see them first,” Carrillo said.

To date, UACI startups have raised more than $105.8 million in funding leading to successful enterprises, spinoff businesses and skilled, local jobs.

Looking ahead to the next 30 years, UACI is forecasted to create 18,875 jobs and more than $600 million in wages,

$1.5 billion in economic activity, as well as nearly $85 million in state and local tax revenue.

To meet innovators where they are, the UACI has several outposts. These include headquarters at UA Tech Park (Rita Road), as well as the UA Tech Park at The Bridges, Biosphere 2, Oro Valley, Vail and Sahuarita.

“Over the last 5½ years, the university has viewed Tech Parks as a resource to get really difficult projects off the ground. We are advancing the University of Arizona’s mission by fostering innovation and providing a bridge between academic research and industry.”

UACI also offers the Global Advantage program to assist international companies in establishing a U.S. presence. across North America as well as internationally. Businesses are provided with tools, including access to an impressive network of partners with expertise in international business.

UA Tech Park at The Bridges Strategically located just three miles south of the UA’s main campus, UA

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Tech Park occupies 65 acres of the larger 350-acre mixed-use site known as “The Bridges”.

Located in an Opportunity Zone, the long-term vision for UA Tech Park at The Bridges will encompass approximately 1.2 million square feet of developed office and laboratory space that could support 5,000 knowledge workers.

The UA Tech Park at The Bridges is anchored by “The Refinery,” a fourstory, 120,000-square-foot building that symbolizes the cultivation of talent and innovation from the University of Arizona. The multi-tenant building serves as the ideal place for businesses looking to co-locate with the University of Arizona expertise allowing them to recruit top talent, develop research partnerships and drive innovation through university-industry collaborations. The Cat Tran program provides transportation to and from, giving students easy access to internships, real-world research, and career-building opportunities.

The Refinery is home to UA Online, the university’s highly ranked online degree programs, underscoring its im-

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“

The Tech Parks are a critical convergence of research and impact as well as the path to take UA research and innovations to the larger world.

”

– Elliott Cheu Interim Senior VP Research and Innovation University of Arizona

portance as a hub for learning, business, and community growth. Plus, Tech Launch Arizona the commercialization arm of the university, UA Applied Research Corporation and Raytheon.

Since opening The Refinery in April 2022, the UA Tech Park at The Bridges has quickly gained momentum. Adjacent to The Refinery, SpringHill Suites

by Marriott operates a 126-all-suite ho-

tel with various meeting and conference areas.

In December 2022, the University of Arizona’s Mission Integration Lab opened at the UA Tech Parks at the Bridges. This cutting-edge facility allows researchers and students to develop and test high-altitude balloon technology, driving innovation in aerospace.

Coming soon to the park is the new, state-of-the-art facility for the Arizona Public Media operations. The 61,500-square-foot building is designed to meet current and future technical and broadcast requirements. The new Paul & Alice Baker Center for Public Media studio will provide upgraded production and broadcast technology, improved community engagement and new opportunities for increased original local content.

“Tech Parks serve as an extension beyond the main campus,” Cheu said. “It creates a perfect interface environment for university researchers and students to work directly with companies, building their professional resumes.” continued on page 90 >>>

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IMAGES: COURTESY OF TECH PARKS ARIZONA

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The Boyer Company representative architecture plans to enhance the live-learn-work-play-stay environment at UA Tech Park (Rita Road)

continued from page 89 Where Talent Meets Opportunity Stewart said this particular mashup tackles the top priority for CEOs − the workforce and talent pipeline. “The No. 1 thing that keeps CEOs awake at night is securing qualified talent,” Stewart said. “We help these companies navigate to the best and brightest minds coming out of the university.”

The university’s talented workforce and extensive resources have been a major draw for companies of all sizes. At any given moment, approximately 100 student interns are working at the companies located within the Tech Parks, gaining invaluable practical experience.

About two-thirds of the employees at the Tech Park are graduates of the University of Arizona.

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Expanding and Adapting As Tech Parks Arizona charts its course for the next 30 years, flexibility and adaptability remain key. Stewart sees continued value in the “mashup” enabled by physical proximity at the Tech Parks.

In August 2024, Tech Park Arizona announced two major projects at the UA Tech Park (Rita Road) − workforce housing in the form of a 315-unit apartment complex as well as the development of an on-site daycare. There also is a plan for 100 townhomes to be built in a later phase.

Matt Jensen, partner with The Boyer Company, Tech Parks Arizona’s development partner, said, “Tech parks across the country are hubs where businesses thrive and employees are supported. We have ambitious plans to enhance and

elevate the live-learn-work-play-stay experience, building on the success of Tech Parks Arizona to create an even more dynamic ecosystem for innovation and growth.”

Cheu said that Tech Parks Arizona benefits the entire university community, not to mention the entire region.

“It provides connections and value to everyone on campus,” he said. “Tech Parks serve as an extension beyond main campus. Together, we are leading the way in tackling the most pressing and complex issues of our time.

“The ecosystem that we have created, including the tech parks, it’s an amazing opportunity for us to bring together companies from outside, have them collaborate with the University of Arizona and then bring those ideas to fruition.”

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Project: Belvedere Terrace Location: 4431 E. 22nd St. Owner: Belvedere Terrace, L.P. Contractor: Tofel Dent Construction Architect: Poster Mirto McDonald Completion Date: First Quarter 2026 Construction Cost: $19.5 million Project Description: This three-story, 72-unit project is being built as a low-income housing tax credit apartment building for seniors.

Project: Mister Car Wash Tangerine Location: 11897 N. Tangelo Park Place Owner: Mister Car Wash Contractor: Concord General Contracting Architect: A23 Studios Completion Date: August 2024 Construction Cost: $4,175,000 Project Description: This project is a new, ground-up car wash facility that includes site improvements, a waiting room, offices and restrooms.

Project: Del Webb Rocking K Recreation Center Location: 13655 E. Gamble Oak Dr. Owner: Pulte Development Corporation Contractor: Building Excellence Architect: Nelson Partners Completion Date: August 2025 Construction Cost: $10 million Project Description: Rocking K Recreation Center is a state-of-the-art facility offering a fitness center, aquatics, sports courts and multipurpose activity rooms.

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Project: Location:

I-10 International East Los Reales Road and South Alvernon Way Owner: Lincoln Property Co. Architect: Butler Design Group, Ware Malcomb Builder: Brinkmann Constructors Civil Architect: Rick Engineering Listing Agent: Jesse Blum, Cushman & Wakefield|PICOR Completion Date: 2025 Project Description: A 1 million square-foot, Class-A industrial development in the Tucson airport submarket that will include four warehouse buildings with state-ofthe-art cold storage, full concrete truck courts and insulated roof deck system.

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BizDEVELOPMENT

Ari on Fourth

$130-Million Apartment Project Opens Near Downtown

PHOTOS BY CHRIS MOONEY

By Tom Leyde A new 13-story apartment complex in the heart of Downtown Tucson officially opened in August, offering 323 multi-family units for lease.

A ribbon cutting ceremony for Ari on Fourth, 211 N. Fourth Ave., was held on Aug. 8 and marked the conclusion of the $130-million project that began with city approval in 2018.

Opus Group, headquartered in Minneapolis, developed, designed and constructed the 13-story project in partnership with Bridge Investment Group.

The building offers one-, two-, threeand four-bedroom apartments with many amenities.

The project also includes 4,971 square feet of retail space on street level.

The ribbon cutting took place on the third-floor deck of the project which features a pool, hot tub, game room, lounge and a mural by Tucson muralist Joe Pagac. The third floor also includes a large gym and sauna, and there are study rooms on each floor.

“We just love the value of Fourth Avenue,” said Jay Ramos, senior director of development for the Opus Group. “It’s such a great historic street. I think we can add to it and be a part of it.”

“I want to congratulate those involved in this beautiful, wonderful addition to our community,” said Tucson Mayor Regina Romero. “This development is a perfect example of and model to what we want to see happen in the city of Tucson.

“It embraces the streetcar and the location where you are, and it provides valuable housing opportunities for families and students and young professionals in our community,” Romero said.

“So, I’m really happy that we’re finally here.” www.BizTucson.com

Romero added that the project provides space for electric vehicles.

“I know that you’re working hard with the Fourth Avenue Coalition and the Fourth Avenue Merchants Association to be a good neighbor, to be a good partner,” Romero said. “Because this particular development created an agreement with the neighbors and the Fourth Avenue Merchants Association, we have a wonderful model for other developments to work with, to be mutually beneficial.”

Alex Murphy of Bridge Investment Group called the project unique. “We had 20 or 30 projects that started at the same time and this is the only one, literally the only one, that came in on time,” he said.

Cardinal Group is managing Ari on Fourth. At press time, the building was about 35% leased. Move-in began in mid-August. The units range in price from $1,600 to $3,600 a month.

Fans of the new complex posted comments on Cardinal Group’s website:

“I appreciate the details such as walkin glass showers, the high efficiency glass windows to reduce heat and electric costs, the ceiling fan/lights in the bedrooms and the kitchen appliances,” said Ruth Simmons. “The amenity spaces look amazing. Having the college pickup spot right outside their front doors is a huge plus.

“My daughter is very lucky to be moving into such a beautiful place so close to campus. The rent was very reasonable. We toured many places both higher and lower in cost and Ari was the clear winner between all three girls who are rooming together.”

Added Ameshea Grays: “I’ve been thoroughly impressed with my experience at Ari on Fourth! The property itself is stunning, with a unique and modern design that truly sets it apart. But what really makes Ari on Fourth stand out is the exceptional management team. The combination of amazing amenities and top-notch management makes Ari on Fourth the perfect place to call home.”

A government property lease excise tax offered through the City of Tucson provided incentive for project. Allowed by state statute, it gives city-approved projects eight years of deferred property taxes.

After eight years, 10% of what would have been paid in property taxes is collected for other institutions that would have shared the deferred taxes.

“We try to smooth the (development) process,” said Barbara Coffee, the city’s economic initiatives director. “We enjoy when we get to this point to celebrate.”

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BizLEADERSHIP

Jeffrey P. Nasse is New Pima Community College Chancellor Jeffrey P. Nasse, provost and senior VP of academic affairs and college operations at Broward College in Ft. Lauderdale, Fla., was selected as the new chancellor of Pima Community College.

Nasse brings over 20 years of experience in collegiate teaching and administration across multiple areas of higher education. Besides serving as college provost, some of his roles at Broward College included senior associate VP of academic affairs, dean of the education pathway, dean of academic affairs, dean of academic resources and writing programs, associate dean of English, communication and fine arts. He also held adjunct faculty positions at Florida Atlantic University, Central Maine Community College and East Carolina University.

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“I am deeply honored and humbled to join the Pima Community College family,” said Dr. Nasse. “This institution holds such an essential place in the Tucson community, and I accept this role with great pride and a tremendous sense of responsibility.”

Nasse continued: “Education can be such a transformational opportunity for our entire community. As I step into the position of chancellor, I am certainly mindful of the great work that has been done before me and all the dedicated professionals who have contributed to the accomplishments of this great institution.”

Nasse was selected after a nationwide search conducted by Anthem Executive and vetting by a 20-member Chancellor’s Search Advisory Committee made up of college and community members.

He also participated in a series of oncampus meetings and a public forum.

“As we embark on this exciting journey together, let us extend our warmest welcome to Jeffrey Nasse,” said Theresa Riel, PCC governing board chair. “His arrival marks a significant milestone for all of us, and we look forward to working closely under his guidance to continue our tradition of academic distinction and community engagement all while furthering our students’ successes.

After receiving an honorable discharge from the Marine Corps in 1994, Nasse attended East Carolina University, where he earned a bachelor’s degree in communication in 1999 and a master’s degree in English in 2002. He completed his doctorate in educational leadership and research methodology at Florida Atlantic University in 2013.

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BizWORKFORCE

Auto Asset

Jim Click, Pima Community College Partner to Fast-Track Technicians

PHOTOS COURTESY PIMA COMMUNIT Y COLLEGE

By Rodney Campbell As a youngster, Angel Rojas enjoyed tinkering with things. Whether it was building with Legos, working on his bicycle or helping his dad make repairs around the house, Rojas was always working with his hands to fiddle with something.

The 2022 Sahuarita High School graduate is now on his way to making a living from his childhood interests as a member of the first cohort of the Ford Automotive Student Service Education Training Program at Pima Community College, sponsored by the Jim Click Automotive Team.

“When I was very young, I had a keen interest in fixing things,” he said. “When I got older, I set my mind on something that would be a good career choice.”

The ASSET program is helping Rojas and his colleagues become master technicians and likely earn six-figure salaries. The program combines handson classroom education at PCC with on-the-job training at Click’s Ford and Lincoln dealerships.

The two-year pathway has students alternate spending eight weeks in class, then eight in a Click dealership, working in one-on-one paid apprenticeships with a mentor.

“Every student is sponsored by a dealership,” said Daryl Koeppel, parts and services director for the Jim Click Automotive Team.

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Koeppel has been with the Click team for 50 years and was instrumental in getting ASSET started in Tucson.

There are 41 participating community colleges offering this technician training program across the country. The other one in Arizona is in Glendale. Pima

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It’s a great example of public-private partnership and the transformative nature of innovative collaboration.

– Marcy Euler President & CEO Pima Foundation

”

College was one of three added in 2022, along with Wake Technical College in Raleigh, N.C., and Gwinnett Technical College in Lawrenceville, Ga. Part of Koeppel’s duties include visiting local high schools to recruit students who have an interest in automotive ca-

reers. With the ASSET program now as one of his drawing cards, he’s having no problem finding takers. There’s a crop of 21 students who start the program in late August and Koeppel has already hired another 30 who want to be part of next year’s class. The first class of 16, including Rojas, graduates in December.

“Ford ASSET is one of the strongest automotive training programs in the U.S.,” Koeppel said. “We have the diamond that students are looking for in Tucson.”

The Jim Click Automotive Team pays tuition costs for the students and provided funding to the Pima Foundation to purchase six vehicles for the training curriculum. The Connie Hillman Family Foundation provided a 50% match, bumping the total investment to $750,000.

“It’s a great example of public-private partnership and the transformative nature of innovative collaboration,” said Marcy Euler, president and CEO of the Pima Foundation.

Click is happy to support the program, calling it “an investment, not an expense.” It also helps that the students are learning how to become professionals from Ford and the Click team.

“This program has been a real asset to our company,” Click said. “Trying to find master technicians today is almost continued on page 108 >>> www.BizTucson.com

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BizWORKFORCE continued from page 106 impossible. We have been so successful growing our people from within. (The students) already know us. They have been in our dealerships the past couple of years.”

Shane Peidl was hired in July 2022 as Pima’s first ASSET instructor. A long-time Ford employee, Peidl moved to Tucson from his native Illinois, where he was an ASSET educator at Parkland College.

Peidl taught his first class at Pima in January 2023. He sees similarities between his current students and the ones he taught back home. They all have strong work ethics and want to succeed in a tough field.

“You need self-discipline and patience,” he said. “The nature of the environment is physically difficult. You need a mental approach of toughness. It’s going to be hot, you’re going to get scratched and bruised. You have to be a selfstarter.”

Instruction is comprehensive, including both manual and automatic transmission vehicles and those with diesel and gasoline engines. Steering and suspension, electrical systems, climate control and brake systems are included in the curriculum. The program has 14 vehicles for the students to work on that range from 2010 to 2024 model years.

“Technology never stays still very long,” Peidl said. “You need to be prepared to service any car that comes into the shop.”

Learning in the classroom and at the dealership has given Rojas confidence in his skills. When a more senior technician asks him a question, he feels more assured in his answers.

“I used to question myself,” said Rojas, who works at Jim Click Ford in Green Valley. “I was never actually sure if the advice I was giving was solid. Now I can confidently tell people what’s wrong with their cars. It’s really awesome. It’s like a superpower.”

Students in the program are fast-tracking their way to becoming master technicians. Koeppel said it can typically take between five and 10 years to reach that goal. Participants in the ASSET program can reach this level of expertise in as little as three to five years. Ford guidelines state they must complete five years of service to be officially recognized.

“This could not have been achieved without great representatives at Pima College who worked side by side with the Jim Click Automotive Team for several years to make this a reality,” Koeppel said.

Rojas is grateful to be part of the first graduating class − he learned about the program from one of his high school instructors. Now, he considers himself fortunate to receive the training and financial support that he could never have imagined as a youngster.

“It’s almost like a dream,” Rojas said. “I’m pretty much set for life thanks to this program.”

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SPONSORED CONTENT

BizHEALTHCARE

How the Surest Health Plan Helped Improve Access to Care and Lowered Costs Submitted by: Heather Kane, Health Plan CEO for Arizona & New Mexico, UnitedHealthcare Employer & Individual Encouraging a healthier workforce has long been a priority for employers aiming to attract and retain top talent and spur productivity.

According to a survey by Gallup, 38% of Americans avoid or delay healthcare due to costs, so making medical services more affordable is imperative to help improve access and promote a more equitable system.

Surest represents the next evolution in value-based health benefits that aim to deliver a better experience. The upshot of the Surest model is improved access to care, more satisfied consumers, and lower total costs, which is important as many employers and employees grapple with issues such as inflation and navigating an often-complex health care system.

We are often creatures of habit when making health care benefit decisions.

As a result, some employees may feel inertia and stick with a traditional plan.

If your organization offers the Surest health plan, or if you are considering such a change, your employees may have questions.

Here’s a look at how Surest is different from traditional health plans and how this approach may help meet the care needs of employees and bolster your company’s bottom line.

Surest helps remove financial barriers to care Because 38% of Americans avoid or delay health care due to costs, making medical services more affordable is imperative to help improve access and promote a more equitable system.

Research has shown many consumers struggle to fully understand traditional health plans, including concepts such as deductibles and coinsurance.

By contrast, Surest eliminates deductibles and coinsurance and provides upfront cost and coverage information through an intuitive mobile app. Rather than having to chip away at a deduc110 BizTucson < < < Fall 2024

ible before coverage kicks in, people enrolled in Surest can use their benefits right away, including for low-or-no-cost virtual options.

Due to this approach, some employees may be reluctant to switch plans because they have a health savings account (HSA), which must be paired with a high-deductible plan. With Surest, employees keep their HSA savings and can continue to spend those dollars on qualified health care expenses. The Surest health plan can be paired with a flexible spending account (FSA).

Surest helps make comparison shopping for care simpler Costs for the same health care services can vary within the same city. In the past, it was difficult for people to access cost information for health care services, limiting the ability for many consumers to comparison shop for medical services.

Surest empowers consumers with the cost and coverage information they need to inform their choices. Surest uses variable copays, which means the copay may vary depending on the care provider and facility selected, with

Heather Kane Health Plan CEO for Arizona & New Mexico, UnitedHealthcare Employer & Individual

higher-value options generally assigned a lower copay.

For instance, when Surest members use the app or website to search for a service such as back surgery, they can know their actual cost in the form of a co-pay before they schedule the procedure. The member’s copay may be lower – in some cases by thousands of dollars – if they select a particular care provider and facility. Providers are evaluated based on effectiveness, safety and cost efficiency.

Surest is designed to make it simpler, clear, and easier for members to comparison shop for care, and more than 90% of the time Surest members select care providers and facilities that have been evaluated for quality and value.

Surest does this without limiting members’ options in terms of network care providers and without adding additional referral requirements. Importantly, Surest uses the broad, national UnitedHealthcare and Optum Behavioral Health networks of doctors, hospitals, and clinics.

Surest improved access to preventive care A study showed the Surest plan is making it easier for consumers to access preventive care, which may help identify potential health concerns earlier and may contribute to better health outcomes and improved quality of life.

For employees in a traditional highdeductible commercial plan, a UnitedHealthcare survey found that 42% of consumers chose to skip or delay care whenever they could, primarily because of concerns related to the deductible.

Surest members had a 20% increase in physician visits[1] and a 9% increase in preventive physical exams compared to people enrolled in highdeductible plans. That included a 15% increase in preventive mammograms and a 34% increase in preventive colonoscopies. www.BizTucson.com

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Surest helped lower total cost of care for employers and employees With medical care ranking as the second largest expense for employers behind salaries, it is vital companies maximize the value of their health benefits. At the same time, employers want to avoid shifting care costs to employees, such as through higher paycheck deductions.

Some employers are achieving that outcome through the Surest plan. Due to its user-friendly digital experience, the Surest plan can drive impressive savings for employers and employees.

In fact, Surest members had 54% lower out-of-pocket costs.

Surest enhanced member A leading global professional services satisfaction firm recently released a study showing For employees enrolled in Surest, the the Surest health plan delivered more Net Promoter Score® – a key measure affordable and equitable care. of consumer satisfaction – was sigThe study found the Surest health nificantly higher than industry benchplan’s a copay-driven model that allows marks. Nine out of 10 Surest members members to see the full cost of care bere-enroll in the health plan year-overfore they seek care led to lower claim year. costs exceeding $400 per member per Surest offers a compelling, proven year. Plus, improved spend and utilizaapproach to health benefits, helping tion were observed in all age groups, empower consumers and simplify the over multiple years and across various health system. UnitedHealthcare is conditions. working to apply these lessons more This third-party research showed a broadly to make the health system work reduction in the total cost of care with better for everyone and help our memthe Surest health plan, sustained over bers live healthier lives. time, across demographics, conditions, and comorbidities.

For more information visit, www.uhc.com/SurestAZ.

B

Footnotes 1. Surest 2022 book of business plan sponsors with both medical and pharmacy data within our warehouse; industry 2022 commercial benchmarks and risk adjustment methodology. Risk adjusted for demographics, geography, and disease burden. 168_V01, 66_V03, 169_V01, 71_V03, 67_V03. 2. 2023 UnitedHealthcare Consumer Sentiment Survey was conducted Aug. 2-4, 2023, using Engine INSIGHTS CARAVAN® online survey of 1,005 U.S. adults 18 and older. The margin of error was plus or minus 3% at the 95% confidence level. 3. Study comparing Surest financial and utilization outcomes to a matched control group composed of non-Surest members from the same employers, using the same network. Members were matched on age, gender, geography, and chronic conditions. March 2023. 4. Aon’s Cost Efficiency Measurement of Surest 2022, March 2024. 5. Surest 2023 book-of-business digital engagement analysis www.BizTucson.com

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SPECIAL REPORT 2024

THE REGION’S BUSINESS MAGAZINE

TOWN OF SAHUARITA 30 YEARS OF GROWTH

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Town of Sahuarita 30 Years of Progress

By Christy Krueger growth, including that “the founding fathers had The Town of Sahuarita, set in the scenic desthe wish to incorporate to have the local governert vistas of Southern Arizona, has come a long ment be the decision-makers.” way in the 30 short years since incorporating in It began with the vision of Bob Sharpe, who 1994, in large part due to the insightful planning by its early leaders. developed Rancho SahuarThey laid out a vision ita, its largest housing comthat prioritized community, munity that now encomfamily and culture–all facpasses more than 18,000 tors that have helped this residents and 6,000 homes. bedroom community blosThe community includes som into what it is today– access to a variety of parks, a well-governed, inclusive trails and is near schools town with top education, a and commercial developquality lifestyle and a solid ment. Rancho Sahuarita’s base for corporate and ninth residential phase has business growth. started and will include apAnchored by the masproximately 2,000 homes. terfully planned, family“Part of Bob Sharpe’s vicentric Rancho Sahuasion was for a community rita housing community, with retail and commercial,” said Murphy. Sharpe a thriving marketplace, a beautiful man-made lake, donated over 100 acres of – A.C. Marriotti and a growing Town Cenproperty for schools, and he Director of Fnance & Technology ter, Sahuarita is a place its donated the land where the Town of Sahuarita thousands of residents are town hall was built. proud to call home.

Sahuarita’s rapid inArmed with a new, comprehensive master crease has indeed been driven by this robust plan and numerous amenity ambitions laid out residential sector, along with plentiful recreation, in an upcoming bond election, the Town of Sagood schools, parks and safety programs. The huarita is poised for the next level. town is also known for its cultural and signature events.

A Legacy of Local Leadership “We have signature events like Fiesta Sahua“We went from 1,800 residents to 38,000 torita, July 4th, Spooktacular at Halloween and day,” said Sahuarita Mayor Tom Murphy, who continued on page 118 >>> credits several factors for the town’s exponential

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We create an environment where a business can get started as quickly as possible.

It’s easier, faster and cheaper.

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BizMILESTONE continued from page 117 Winterfest,” Murphy said. “There’s also Music at the Lake and sporting events.

There are 15,000-20,000 people attending the big events.”

Added Town Manager Shane Dille, “when the goal is to create a well-balanced community, these opportunities need to be available for the residents, for their quality of life and health.”

An Eye for More Business, Annexation A.C. Marriotti, the town’s director of finance and technology, said the nonresidential sector of Sahuarita’s economy is starting to catch up, with approximately 40% of the town’s total revenues now coming from businesses. Medical facilities have also flourished, with Northwest Medical Center, a Banner clinic and United Community Health Centers in and near Sahuarita.

Marriotti characterizes Sahuarita as business-friendly. “We don’t have impact fees or a business license charge,” he said. “We create an environment

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where a business can get started as quickly as possible. It’s easier, faster and cheaper.”

And residents are eager for even more. “Residents want Trader Joe’s, every sit-down restaurant, goods and services close to them,” Murphy added.

Marriotti sees more commercial growth ahead as the town is able to add infrastructure and annexations. “We just got a $3 million federal road grant and we worked with a Pima County supervisor,” he said. “We hope to develop vacant land. The town doesn’t own a lot of land, but we help facilitate growth by working with developers.”

The town’s current goal is to annex land east of town with the help of the State Land Department. “Our growth opportunity is to the east with state land parcels. We’d like to annex it into our town and bring infrastructure.” Murphy said.

Another annexation in the works is for the Phoenix Zoo, which plans to build a research facility and safari park here. “We’re getting prepared for it on

the northeast side of town,” Marriotti said. “Some land is not in town boundaries, so we’ll annex some land. It’s a small annexation, but it’s important.”

Looking Ahead Now that Sahuarita has reached a milestone anniversary, its leaders are planning for the next phase.

In November, residents will vote on Proposition 403, a $66 million bond program that, if passed, will fund infrastructure and recreational projects such as a recreation center, trails and town hall remodeling.

The town plans to contribute $10 million for a total of $76 million to be spread out over the various projects during an eight-year period.

While the Town of Sahuarita has a number of factors that make it an attractive place to live and work, it really comes down to the devoted residents.

“There’s good participation, the community is very involved, and they’re engaged because they care,” said Marriotti.

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From left –

John Noland

Police Chief Town of Sahuarita

Chuck Wunder Fire Chief Town of Sahuarita

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BizMILESTONE

Safe Bet

Sahuarita is One of Arizona’s Safest Towns

PHOTO: BRENT G. MATHIS

By Christy Krueger As the Town of Sahuarita continues to increase in size and population, so has its support systems including the police and fire departments.

Sahuarita’s leaders believe that if the town is going to continue attracting residents and businesses, it must live up to its slogan - “Making Sahuarita a safe place to live, work and play.”

John Noland was hired as Sahuarita’s chief of police 10 years ago after serving with the Santa Rosa Police Department in California for 30 years, and he’s substantially grown the Sahuarita department. “When I came here, we had 44 sworn officers and seven civilian staff members. We currently have 61 sworn officers and 18 civilian staff members,” he said.

To make room for this growth, the department is about to embark on an expansion of its facility at Sahuarita Town Center. “We’ve outgrown the police station, and the town recognized that. The police department will double in physical size to accommodate expansion needs for 10-15 years. It will help with retention of staff,” Noland said.

Some of his primary goals going forward include recruitment, retention and succession of officers. He said the nation’s political environment in recent years has made it more difficult to hire and keep officers.

As a result, Noland has embarked on a promotional campaign. “We go to recruiting events, military bases, schools and we use social media and our messaging signs that we move around town.”

While attracting people to the field of law enforcement may be tougher these days, attracting residents to Sahuarita is not. Along with the relatively low cost of housing, plentiful amenities and family-friendly events, the town is also a very safe place to live. Safewise chose Sahuarita as the third safest town in Arizona for 2024.

“I’ll take that ranking anytime,” said Noland, “but crime happens even in safe cities. My job is to make it as safe as possible.”

Other safety programs provided by the police department include school resource officers who offer law enforcement services, security, and classes on responsibility; a traffic bureau with officers assigned to special traffic enforcement; and the addition of a criminal investigation bureau.

Significant to Sahuarita’s continued ability to attract residents has been the recent availability of medical facilities. This includes Banner Multispecialty Clinic; United Community Health Center, with multiple locations near Sahuarita; and Northwest Medical Center, a hospital facility affiliated with the Tucson hospital by the same name. “Northwest has been significant for us,” Noland said. “It’s a huge success for the town.”

Working closely with the police department to help make Sahuarita a safe community is the fire department, which recently had a name change.

“Since 1975, it’s been Green Valley Fire District,” noted Fire Chief Chuck Wunder, who’s been with the department since 1995 and is starting his 11th year as chief. “We’ve seen a lot of growth and our board of directors decided to change the name to reflect the area we cover. The name was changed to Santa Rita Fire District.”

The district currently includes five stations – three in Green Valley and two in Sahuarita, handling an estimated 15,000 calls per year. And Wunder expects to add more in the future. “We’re poised for growth.

We’ll look at growth in Quail Creek and areas to the east as infrastructure grows. To meet response time, we need to grow and we need to support that growth.”

Santa Rita Fire District also has a special operation for wildlands firefighting.

Wunder strives to involve the area’s citizens as much as possible. “We have a volunteer-run program called Fire Corp Program with more than 80 participants.

These are community volunteers who handle nonemergency calls, such as our smoke alarm and battery changing service. We work to get involved in the school district. Right now, we’re having Camp Nitro where we host summer camps to introduce high schoolers to the public arena for recruiting and to get the message out about public work as a career.”

Santa Rita Fire District hosts at least 30 public outreach events each month. “We do HOA presentations, CPR training to the public and healthcare providers, swift-water rescues in the summer and pool safety,” Wunder said. “We’re super excited about our growth – the future is bright. We want to make sure the public knows about our services.”

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PowerPhotonic

ASARCO

Sahuarita Advanced Manufacturing & Technology Center

Hydronalix

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La Posada

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BizMILESTONE

Grow and Prosper Town of Sahuarita Looks Forward to the Future

By Tara Kirkpatrick

Northwest Medical Center-Sahuarita

With thoughtful leadership and managed growth, Sahuarita has the potential to become one of the premier suburban destinations in the United States.

That’s the consensus behind the town’s new master plan, developed with Austin-based consultant firm TIP Strategies, which outlines a comprehensive roadmap for building on Sahuarita’s threedecade success and aiming for the results of nationally prominent suburbs such as Scottsdale, Ariz., Round Rock, Tex. and Alpharetta, Ga. “We believe that Sahuarita has the potential to be much more than a bedroom community,” said TIP project lead Luke Shuffield.

“Whether it’s the existing and new industries that can be really innovative, whether it’s collaboration with the Tucson area, certainly the University of Arizona, foreign direct investment coming from the border of Mexico, there’s a lot to be excited about.”

Shuffield and his team visited Sahuarita several times throughout 2023 and worked not only with town officials and a welcoming economic development team led by Victor Gonzalez, but also spoke with numerous regional stakeholders in compiling the plan adopted in February. It focuses on three pillars – People, Prosperity and Place.

“We wanted a blueprint to help how we go about strategically identifying and/or pursuing opportunities,” said Gonzalez, Sahuarita’s economic development and public affairs director.

People Incorporated in 1994, Sahuarita has grown to a population of more than 35,000, no doubt led by people who flocked to its stunning desert vistas, safe and inclusive neighborhoods, excellent schools and vibrant quality of life. Looking forward, even with just baseline growth, the population’s on track to more than double in the next 20 years. Indeed, it’s already one of America’s fastest growing towns. continued on page 124 >>>

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BizMILESTONE continued from page 123

Moving forward, a dynamic and skilled workforce is key.

“We are thinking of the next generation,” said Alex Magallanes, an economic development specialist for Sahuarita.

“It’s a good way to get started–how to create pathways so we can attract the younger generation.”

The plan urges vigorous collaboration with UA, Tech Launch Arizona and Pima Community College. Gonzalez’ team is exploring apprenticeship programs with local industries, including mining, photonics, water management and more.

Also beneficial is bolstering civic leadership. “We have 33% of our population as young families,” Magallanes said. “We want to bring resources to help them connect with their peers.”

Town economic leadership is focused on strengthening from within, aiding those who already run homebased businesses. Magallanes touted the town’s free development program, Grow IN Sahuarita, to help local entrepreneurs take their businesses from

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We want to grow and I’m excited about the opportunities to complement the residential growth, developing employment and industry.

– Victor Gonzalez Economic Development & Public Affairs Director Town of Sahuarita

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home to potentially brick and mortar.

Currently, 74 participants are enrolled, with an immediate eye for 120.

“We focus a lot of our energy on the entrepreneur in Sahuarita,” Magallanes said. “Our school of thought is growing our own businesses into what could be major employers.”

Prosperity Sahuarita already benefits from industries such as mining, with large operations by ASARCO, Freeport McMoRan, Caterpillar and UA’s San Xavier Underground Mining Laboratory nearby. Healthcare continues to grow with Northwest Medical Center-Sahuarita and the nationally recognized La Posada retirement community in Green Valley.

The new Sahuarita Advanced Manufacturing & Technology Center has also been a game-changer, housing PowerPhotonic, a leading international optics manufacturer based out of Scotland; ATAG, a 3D printing company; and Global Water Resources, a water recontinued on page 126 >>>

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Congratulations to the Town of Sahuarita on their 30th Anniversary

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BizMILESTONE continued from page 124

source management company. Other Sahuarita-based companies, such as the maritime tech company Hydronalix, have found the town to be a secret weapon for growth.

But more is needed.

“It’s really about growing and diversifying our industry sectors here in Sahuarita,” said Gonzalez. “How do we continue to support existing industries and identify opportunities for additional technology and innovation.”

The town is advantageously positioned not only within 15 minutes of Downtown Tucson, but 35 miles from the U.S. Mexico border, so international business could bring numerous opportunities. Additionally, its proximity to Davis-Monthan Air Force Base and the region’s top employer, Raytheon, brings vast potential for expansion in aerospace.

The master plan also envisions the recruitment of additional machine shops, 3D printing operations, packaging and hardware suppliers that support existing industries.

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Place Surrounded by Southern Arizona’s desert meadows and majestic mountain passes, Sahuarita is renowned for its safe, family-friendly communities and responsive government. The town is home to a beautiful lake and five-acre park with walking paths and public fishing, in addition to numerous recreation spaces. It’s also adjacent to the world’s largest irrigated pecan orchard.

“One of the first things people notice is that it’s a beautiful community,” Gonzalez said. “We have beautiful landscaping, the Santa Cruz River runs right through.”

The potential for growing this stunning place is rife with opportunity.

Planning for the future should include more hotel rooms, according to the master plan. In fact, a goal to reach 500 new hotel rooms by 2034 is “ambitious yet achievable.” Also, more restaurants are not only urged in the plan, but also desired by existing Sahuarita residents, according to its 2022 Citizen’s Survey.

Key among these could be craft breweries, live music venues, coffee shops and

other businesses to attract young professionals.

“Our economic development team has been connecting with various restaurant and operators and doing our best sales pitch,” Gonzalez said. “We are highlighting the existing growth, the purchasing power, and our household incomes.”

Also exciting is the desire to create a bustling Town Center in Sahuarita, which will offer a central gathering place and additional spaces for recreation.

“We are very much still a blank slate,” Gonzalez said. “We want to grow and I’m excited about the opportunities to complement the residential growth, developing employment and industry.”

For Shuffield, helping to craft the town’s master plan has been one of his favorite projects to date. “The entire leadership of Sahuarita is ready for this kind of direction.”

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Mark McElhinney CEO PowerPhotonic

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PowerPhotonic Finds U.S. Home in Sahuarita

By Christy Krueger For McElhinney and PowerPhotonic employees, it was When an international optics company was looking a great fit – they were still in Southern Arizona and close for a location to set up its U.S. facility, Sahuarita was the to defense clients. “It was 14,000 square feet and easily perfect choice. configurable. We worked with a local architecture comPowerPhotonic started in Edinburgh, Scotland 20 pany who helped us design and we built the clean room. years ago making precision lenses and other optical elIt was operating by March 2023. We told the architect ements for high power lasers, said Mark McElhinney, CEO of the company’s U.S. facility in Sahuarita. we wanted a European feel; inside there’s aluminum and “We start with a flat piece of glass and use a laser to glass, bright colors, a modern feel. Everything is clean shape the glass for optical functions needed in highand bright. It feels like the U.K. facility,” he said. powered laser applications like shooting down drones As far as the town itself and the people, McElhinand missiles,” he said. “The U.K. facility mostly deals ney has all positives to say. “The town is very supportwith commercial applications such ive. Mayor Murphy helped us set as laser cutting and welding for apup and made us feel welcome. Saplications like automotive manuhuarita wanted to bring high-tech facture. One of the biggest uses for companies to the town to broaden PowerPhotonic parts is in retinal the local employment base. It was imaging systems. The retinal imaga great fit for both of us. Engageing systems in an eye doctor’s office ment with the town helped us decontain optics that are likely made velop a feeling of place. We wanted by us.” a sense of belonging, we wanted to The U.S. operation in Sahuarita, engage with the community. That however, mostly handles defense was a great advantage of locating applications. “We support U.S. dein Sahuarita. We could develop a fense and big government labs,” company culture that felt welcomMcElhinney said. Customers ining and friendly.” clude Raytheon and other defense PowerPhotonic has 10 employcompanies in California, Colorado ees, some of whom live in Sahuaand Texas. “We’re in the center of rita, he noted. “That’s important our customers and there is a skill to have them live here locally in – Mark McElhinney base here we can use.”

Sahuarita.”

CEO McElhinney previously worked In order to connect with other PowerPhotonic in Tucson for Leonardo Electronlike businesses in the region, Powics, a manufacturer of laser components and a customer erPhotonic belongs to Optics Valley. Optics Valley refers of PowerPhotonic U.K., so he was already familiar with to the Southern Arizona optical cluster that is home to a the Scottish company and was hired to open and operate high concentration of optics companies, many originata Tucson subsidiary. Tucson was initially selected to be ing at UA. It is also a trade association for members. the company’s U.S. location because of its proximity to McElhinney believes the business climate of Sahuaridefense clients. ta is forward-thinking. “Sahuarita is trying to encourage “When we started our search in 2022, there weren’t other companies like us to come here. We expect more a lot of places the right size,” McElhinney said. “We technology companies to come to Sahuarita.” were looking for a space of 15,000 square feet and there He feels the town is very engaged with growing the wasn’t much in Tucson of that size. We widened our community while also being welcoming, supportive and search and our realtor suggested a new facility in Sahuaenthusiastic. “I can’t stress how supportive they’ve been.” rita, established to attract high technology companies And the mayor is right up there. During construction – SAMTEC (Sahuarita Advanced Manufacturing and inside PowerPhotonic’s space, McElhinney didn’t have Technology Center).” a place to sit down and work. “So the mayor offered me his office,” he recounted.

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One thing we looked for was a feeling of place.

We wanted a sense of community, we wanted to engage with the community.

PHOTO: BRENT G. MATHIS

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Julia Johnson Founder Julia Johnson Fitness

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Julia Johnson Fitness Thrives in Sahuarita

By Tara Kirkpatrick Her Sahuarita boot camps are just the beginning.

Julia Johnson Fitness is just one example of entrepreJohnson holds a “Ladies Night” once a month where neurial success in Sahuarita. participants paint or go to movies, etc. and then the Johnson’s tri-weekly, early-morning boot camps, held group also plans a hike or a run outside of class. “I outdoors in a town park no matter the weather, have open this up to anybody that wants to come and be a become a community staple, as are the group training part of it,” she said. “I’ve built a good business and it’s sessions in her garage. not about me, but it’s really about “I started this about five years the people that are in it and the ago in our community,” said Johnfriendships made.” son. “I’ve had people that have Her garage training sessions are been with me for all five years. It’s a by-product of her boot camps. really something special because “It’s been about two years now, you’ll get people that don’t know and I’m so thankful that I started any neighbors or don’t know each it. When you see other people that other, and they come to the group, are pushing themselves....it makes and before you know it, they have you want to go harder. It just really these friendships.” makes such a difference” Johnson, a mother of three Johnson is one of the particiwhose husband serves in the U.S. military, chose Sahuarita to live pants in Grow IN Sahuarita, a free local program that helps local and felt it was a place where she entrepreneurs progress their busicould build her fitness business. nesses. She meets with economic “I needed the community feel development specialist Alex Mabecause I knew that I wanted to gallanes consistently to develop a start my boot camp here. I needed plan for growth. something that felt a little more “We’ve only worked together for personal.” a very short amount of time...but I Fitness has been an accidenwill tell you, in those two or three tal, yet fulfilling career path for – Julia Johnson months, I really learned so much Johnson. As a military wife and young mom, she attended classes from him. How cool that our town Founder in other cities to meet people, and is so invested in businesses.”

Julia Johnson Fitness stood out for her natural ability. “I Magallanes and Johnson have had people come up to me and ask if I was an instruccreated a 90-day plan and he essentially acts as her actor,” she recalled. “All these little seeds were planted. I countability coach. “Every month I am getting five new realized, I love this. I was already going to school for clients and it’s just doing small things,” she said. “I’m something else, but once I switched it, it was like I came not even investing money. It’s more about being smart alive.” She would go on to earn her bachelor’s degree with my time. Having him as my accountability partin corporate fitness. ner, I’m so grateful for it.”

“

PHOTO: BRENT G. MATHIS

I needed the community feel because I knew that I wanted to start my boot camp here. I needed something that felt a little more personal.

”

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A Home for Hydronalix

Maritime Company Finds Success in Sahuarita

By Tara Kirkpatrick Hydronalix, a high-tech company whose robotic water and air rescue systems are used all over the world, has found Sahuarita to be the perfect town for its headquarters.

Even, perhaps, its secret weapon.

“When you think about a maritime company, it’s usually in a seaport town,” said Tony Mulligan, founder and CEO of Hydronalix. “For the first number of years, we didn’t want others in the industry to know what we were doing. It gave us a chance to grow and develop our technology.

“We also had another idea that if we trained and educated people who live in Sahuarita how to do this work, our retention would be higher because they want to live here.” Mulligan said. “We were looking for the long haul, people that would want to spend their entire careers with us.”

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He has done just that. Founded in 2009, Hydronalix is a leader in extreme performance, small unmanned vehicles for water and air. A mechanical engineer, Mulligan leads a team of 47 people who pride themselves on design and development, test and evaluation, production, marketing and customer training and service. The company has produced more than 2000 systems to date.

His team comprises not only scientists and engineers, but also retired fire chief personnel and former military.

“We train a lot of firemen and policemen and first responders from all over the world here.” Mulligan said.

Hydronalix tests and trains its products locally, on Sahuarita Lake and nearby Patagonia Lake, but also globally. Its team takes part in U.S. Marine Corps training exercises across Europe.

The company also will soon open an of-

fice at the NATO training facility on the island of Crete. “We send people from Sahuarita there,” he said. “We have 10 people in Sweden right now. We also have boats in 53 countries and about 900 locations that we work with.”

Sahuarita offers Hydronalix the trusted vendors, suppliers and other infrastructure of nearby Tucson, with a dedicated local workforce. Traveling all over the country only confirms Mulligan’s appreciation of the town for his company.

“The key to production isn’t that you’re on the water, but it’s that people do very high-efficiency, high-quality work, and so we get people here that are very dedicated and very passionate,” Mulligan said. “We feel very strongly that this is a very well-organized, planned out and well-run community.”

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Farmer’s Investment Co. Invested in Sahuarita’s Success

By Tara Kirkpatrick On the storied Southern Arizona land that encircles Sahuarita, R. Keith Walden became one of the largest pecan producers in the world.

Today, the company he started, Farmers Investment Co., is one of Sahuarita’s biggest supporters, if not its most fruitful partner.

From donating significant acreage for housing, a high school and a church in the town to hosting annual running events and providing scholarships, the Walden family and FICO are invested in Sahuarita’s success.

“The Waldens have stayed true to their Sahuarita roots by giving back and celebrating the community that has helped them flourish,” FICO’s website proclaims.

In 1914, Bernard Baruch, Joseph Kennedy and J.P. Morgan chose the Santa Cruz Valley here to grow guayule, a source of rubber, because of a feared shortage during World War I. When the project was canceled after the war’s end, Queen Wilhelmina of the Netherlands purchased the land and invested in a cotton-growing operation.

A California farmer, Walden started Farmers Investment Company and was looking for opportunities outside the state. In 1949, he would buy the land after the queen’s death and continue 138 BizTucson < < < Fall 2024

to grow cotton, expanding with an additional land purchase in 1958 and making Sahuarita his company’s official headquarters.

Yet, in 1965, fearing a drop in cotton demand because of the advent of new synthetic fibers and other market factors, Walden experimented with different crops and ultimately switched his crop to pecans. It was a prosperous decision. By 1969, FICO had more than 6,000 acres of planted pecan trees. Today, it yields an average of 2,200 pounds per acre of pecans.

Over the years, the Walden family, which continues to run FICO, has donated hundreds of acres for many community related needs. For example, when the town’s lone high school exceeded capacity in the early 2000s, the Waldens donated the land to build a second one–the now-thriving Walden Grove High School.

“Not only did the Waldens donate land for the high school, but they worked with us on several other issues,” Jay St. John, retired superintendent of Sahuarita Unified School District, wrote in a 2015 editorial for Green Valley News.

“We had to put in a septic system, with which the Waldens also helped. We had to build a safe road to access the school, which the Waldens allowed us to do

across their land. The Waldens even helped us get drinking water to the campus and to Sahuarita Park.”

For a decade, FICO also ran the Sahuarita Pecan Festival, which became a pivotal family-friendly event and raised more than $120,000 for the community before it came to an end in 2019.

Since 2008, FICO’s annual running events also have made a significant impact on the Sahuarita community. These events have raised close to $20,000 in total donations, benefitting a variety of local organizations, including The Continental School Foundation, The Green Valley Sahuarita Chamber Foundation, the Sahuaro City Music Theater, and the Green Valley Firefighters Charities.

Last year, FICO gave out scholarships to four high school students through the Sahuarita-Green Valley Chamber Foundation.

“We firmly believe in the positive impact of fostering these activities, which align with our core objectives of promoting physical and mental well-being, providing vital support to local organizations, fostering a stronger sense of community, and sharing our journey and stories with our neighbors,” said Paula Beemer, FICO’s events director.

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6 Ways to Make Sure Your Business Stands Out Among Competitors Staying competitive in today’s market can be a challenge. These steps will help.

As the business landscape continues to evolve, paying attention to the competition is more important than ever.

Business isn’t run in a vacuum, and understanding what’s working — and equally as important what’s not working — for other successful companies is an integral step in staying ahead of the game. Here are some ways to do that.

Set a Google Alert One of the easiest things you can do, setting up a Google alert allows you to immediately be alerted of big news that’s being reported on your major competitors.

ter three or fewer bad experiences with customer service. It’s worth running through your competitor’s customer experience from time-to-time to see how smoothly it operates and what they’re doing differently.

Pay Attention to How They Use AI Incorporating AI into a website can lead to a 15.4% increase in traffic, while 91% of customers believe that a company website should have AI chatbots.

If you’ve noticed an uptick in business for a competitor that’s recently instituted AI on their website, that could be one reason why.

Follow Websites and Track SEO Poor user experience on a website drives 50% of potential customers to competitor businesses. Track what your major competitors are doing on theirs — taking special note of anything new or innovative — to ensure you stay viable in this area. Start by paying attention to their SEO. Compare web traffic and look for similarities and differences in your online strategies.

Go Through the Customer Experience 80% of customers said they would leave a brand they’ve been loyal to af-

Invest in Data Technology There are plenty of automation tools on the market that help track how competitors are doing in various areas.

Look for companies that offer things like competitive and social post analysis, social media audits and social listening for the most complete overview.

Track Pricing Technology aside, pricing is one of the most important aspects of a business. Understand where your company falls by comparing pricing strategies among your competitors. Customers are willing to pay more for certain things so understand your customer base and price accordingly for best results.

It’s not just about having the above data. Besides assessing your competitors, institute the following as benchmarks of your business to keep customers coming:

• Provide unparalleled customer service

• Define and build your brand based on the value you provide

• Position yourself — and your

business — as experts in the field

Corie McGrath

PNC Business Banking Sales Manager for Tucson and Southern Arizona

• Put a face to your product or service • Have a clear and unique voice in the market

Ready to Help Learn more about managing, running, and growing your business at pnc.com/smallbusiness or by contacting Corie McGrath, Business Banking Sales Manager for Tucson and Southern Arizona, at corie.mcgrath@pnc.com.

PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). ©2024 The PNC Financial Services Group, Inc. All rights reserved. www.BizTucson.com

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Jill Harlow

General Manager La Encantada

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Marc McLaughlin Director of Operations La Encantada

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BizMILESTONE

Top Shops

La Encantada Celebrates 20 Years as Region’s Luxury Retail Center

PHOTOS BY BRENT G. MATHIS

By April Bourie The region may remember the excitement in 2004 when La Encantada was built in the scenic Catalina Foothills, with anchor stores such as Apple, Crate and Barrel, Williams-Sonoma, Pottery Barn, Anthropologie and AJ’s Fine Foods.

With the opening of this outdoor marquis shopping destination, many felt Tucson had finally made it on the high-end retail scene. And now, La Encantada is celebrating two decades here.

“With breathtaking views of the Santa Catalina Mountains and being nestled among six major resorts, La Encantada set the standard for luxury shopping in the Sonoran Desert when it opened,” said Jill Harlow, La Encantada general manager.

The architecture and desert beauty of the shopping center pleased many early shoppers and continues to do so today.

“La Encantada celebrates the splendor of Old-World Spanish traditions alongside modern sophistication,” said Harlow. “In addition, La Encantada is famous for delivering world-class, upscale brands that are exclusive to Tucson and first to market.”

Through the years, La Encantada tenants have included Louis Vuitton, Kate Spade, Lucky Brand and Tiffany & Co. Today, new additions such as Drybar, Tecovas and Free People and more have joined the ranks.

La Encantada has also established many key events throughout the year that have long-attracted Tucson shoppers. Those include the Halloween Extravaganza, which offers trick-or-treating at various stores, and Enchanted Snowfall, which features falling “snow,” live entertainment and refreshments.

Smaller events include art classes by the Southern Arizona Arts Guild and sales www.BizTucson.com

and special events offered by individual stores.

In 2021, the company that originally developed and managed La Encantada decided to sell it. Jim Horvath, Town West Realty CEO, and Toby Horvath, Town West’s president, reached out to local companies HSL Properties and Iridius Capital to suggest they create an investment group to purchase the property. The sale went through in late 2021. “Jim and Toby were interested in purchasing the property to get it into local hands and make it the best it could be for the local community,” said Harlow.

“

La Encantada is famous for delivering worldclass, upscale brands that are exclusive to Tucson and first to market.

”

– Jill Harlow General Manager La Encantada

Today, Town West is responsible for positioning and marketing the center as well as filling any retail space that becomes available. This strategy includes bringing more first-to-market retailers to the center.

Since taking over management, Town West has been working on a “phased refresh” for the property, according to Harlow. “We have brought in many new tenants and have worked to help existing retailers expand. There is more excitement to come.”

“We have been able to bring in many new tenants to La Encantada that are unique to Tucson securing our position as the premier shopping experience in the foothills and Tucson,” said Jim Horvath.

More new coveted stores that recently opened or are in the works at the center include Alo Yoga, a yoga clothing store for men and women; Evereve, a women’s clothing store for elevated, everyday style and Gorjana, a women’s jewelry store.

“There have been many changes over the years, but with those changes, the integrity of the property has always remained the same through the years,” said Marc McLaughlin, La Encantada’s director of operations who has been with La Encantada since it opened. “I think we are in the best phase now with the new ownership group and the recent additions to the property. It’s an exciting time to be at La Encantada.”

Moving forward, the center would like to host more large events; especially after some dropped during the COVID-19 pandemic. “Since COVID, the event landscape has changed, and many events like ‘The Event’ with the Boys and Girls Club didn’t make a comeback. La Encantada hopes to add more of these one-of-a-kind events in the future that draw local interest and crowds,” said Harlow.

Added Horvath: “We continue to work on repositioning the property to provide the best experience for all Tucsonans for dining and shopping. The future is very bright for La Encantada.

We have more tenants wanting to be a part of what we are building than we have space available.”

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Arizona Sports Enterprises New Entity to Generate Needed Revenue for Wildcat Sports

In the ever-changing landscape that is NCAA athletics, Desireé Reed-Francois is prepared to pivot as needed.

She’s actually more than ready, given her swift and definitive moves to make the University of Arizona’s financial situation more manageable and back in the black. One move – and a not so subtle one – is pivoting from longtime media partner Learfield IMG College to newly created Arizona Sports Enterprises.

Reed-Francois called it a “methodical” decision but “innovation is part of who we are.”

“We have to look at things differently,” she said. “We respect our Learfield colleagues and have contracted (with them) to do our national sales, but we felt we can enhance that connectivity with our community, which would strengthen our overall corporate partnerships but give us some flexibility in the evolving landscape.”

Essentially, the move would cut out the middleman for local sponsorships.

Reed-Francois added it was a difficult decision but “whenever you are taking on something new, you are taking on a risk.”

Betting on yourself means banking on the block A, and betting on the championship-level sports and people that Arizona has. It meant something when she was a UA student in the mid144 BizTucson < < < Fall 2024

“

We are a prominent brand, and we have a storied past, but we have to continue to evolve into the future.

”

– Desireé Reed-Francois VP & Director of Athletics University of Arizona

1990s and perhaps has heightened as she’s now the athletics director.

“College athletics is evolving and it’s our job to stay above that line,” she said.

UA “represents $266 million in annual economic impact to our state,” Reed-Francois said. “We are a prominent brand, and we have a storied past, but we have to continue to evolve into the future. And this is one of the things that’s going to help provide resources so we can continue along that championship road.”

She said the athletics department looked at different models and approaches to help Arizona become more financially successful when it came to media rights. It was prompted by a university-commissioned report by Ernst & Young that recommended changes.

“Based on that analysis, we made the decision we wanted to bet on ourselves,” Reed-Francois said. “We recognized 81% of our corporate partners are local. We wanted to enhance the connectivity.

“It’s a massively changing athletic landscape, and that flexibility we thought would be something important as we continue to navigate the evolving college landscape.”

So, in comes Arizona Sports Enterprises, an in-house entity, to gain sponsorships and more to keep the money continued on page 146 >>> www.BizTucson.com

PHOTOS COURTESY ARIZONA ATHLETICS

By Steve Rivera

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continued from page 144 coming in. Learfield was a third-party partner responsible for the school’s media rights outside of network TV. For years, Arizona received about $7 million of guaranteed revenue from Learfield.

According to the Ernst & Young report – which was 49 pages detailing many suggestions to help Arizona financially – it said, “Arizona Athletics, under its new leadership, should consider opportunities to improve core business processes, strengthen internal controls, and increase transparency around spending trends and budget-to-actual performance − ultimately leading to both cost containment and additional revenue generation.”

Reed-Francois admits Arizona Sports Enterprises will take time to take hold, generate a profit, and get to a projected $18 million a year.

“We’re being conservative,” she said.

“We are relying on the EY (Ernst & Young) information to kind of give us the financial performance. In the first year, we’re building a brand-new business from scratch. So, the first year, we’re not expecting massive returns. But we know that this is a long-term play.

EY projects $18 million but definitely not this first year. That’s our long-term plan.”

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Ernst & Young wrote, “Implementing these opportunities could take one to five years and would leave Arizona Athletics better positioned to respond to the increasingly complex demands of running a high-performing athletics department in a fast-changing collegiate athletics landscape.”

Soon after the announcement about Arizona Sports Enterprises, Reed-Francois invited local heavy-hitters, boosters, student athletes, coaches and more to the Sands Club at Arizona Stadium to discuss the future and gauge support for UA’s much-needed revenue-generating efforts.

“It was fantastic,” she said. “I think we had between 200 and 250 people there. It was phenomenal to get out and talk to different corporate partners and hear what was important to them, but also share our enthusiasm. We’ve got a lot of good momentum going.”

Nikki Barry, Arizona’s multimedia operations and brand manager, said, “It’s been an exciting time and cool to meet with the partners and be in the community to see how they are excited to be part of this. It’s a good chance to see how strong University of Arizona athletics and the Tucson community are. I’m excited to see how this grows over the next six months, year and five years.”

Lamonte Hunley, a fan, booster and former Arizona football player, also liked what he heard. “That meeting was very encouraging and insightful to see the direction Arizona is taking with the community business partners,” he said.

“We are encouraged,” Reed-Francois said. “The future is bright. We are thankful for the corporate partners we’ve retained and to the people who have come on board who were not part of us.”

Looking forward, it’s possible that Arizona may sell naming rights for Arizona Stadium and/or McKale Center– possibly in the next three to five years.

“We have to be creative and have to be aggressive,” she said. “We have a brandnew revenue share coming and we’ve got to create that business model. This is one step to do that.”

Arizona plans to keep the longtime Voice of the Wildcats, Brian Jeffries, who has been part of the program since the mid-1980s. Additionally, KCUB 1290 radio will continue to broadcasting the games on the radio and streaming.

“Brian Jeffries is a big part of our future,” she said. “We have a contract out there and that is in the process (of being signed). It was important that we kept (1290) the same, so our fans won’t see any difference there.”

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PHOTOS COURTESY ARIZONA ATHLETICS

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From left –

Sean Murray

Tucson Market President

Terri Gomez

Senior Relationship Manager

Paul Tees

Chief Credit Officer 148 BizTucson < < < Fall 2024

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Introducing Southwest Heritage Bank Merger Strengthens Former Commerce Bank of Arizona

PHOTO BY BRENT G. MATHIS

By Romi Carrell Wittman Imagine having access to “big box” inventory at your favorite neighborhood store where you’ve come to rely on personalized service and local expertise. That’s precisely what Southwest Heritage Bank is doing after a recent merger.

In early 2024, Commerce Bank of Arizona merged with Bank 34, a 90-year-old community bank originally from New Mexico. The combined bank mutually changed its name to Southwest Heritage Bank to honor the legacy each bank has in the Southwest and to recognize the expanded footprint in Arizona and New Mexico. SWHB will be one of the largest community banks headquartered in Arizona. This union has strengthened the bank’s capabilities while reaffirming its commitment to the local communities it serves.

Sean Murray, SWHB’s Tucson market president, emphasizes that while the name is new, the people and principles remain unchanged.

“We’re still the same team with the same focus that Tucsonans have trusted for 22 years,” Murray explained. “Our merger has simply given us more tools to serve our community better.”

This amplified capacity is evident in the bank’s enhanced ability to handle larger loans and pro-

vide a broader range of services. Chief Credit Officer Paul Tees, a member of the Tucson leadership team, highlights the merger’s benefits: “We can be even more responsive and flexible with an increased lending capacity. And it’s all done locally by local people who understand our customers’ businesses.”

A local advisory board composed of business leaders and clients who share the bank’s passion for advancing and improving local communities is key to SWHB’s community connection. This structure ensures the bank remains deeply connected to the community it serves.

Steve Pickering, a longtime local businessman, serves as chair of SWHB’s advisory board. He said the board provides insight to the unique needs of businesses, both small and large.

“One of our key goals after the merger is to further enhance our relationship with business leaders in our community,” Pickering said. “Their counsel will generate new ideas on how to continue growing relationships with new and current bank customers.” continued on page 150 >>> Fall 2024

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continued from page 149 Mike Hammond, a principal at PICOR Commercial Real Estate Services and a member of the SWHB advisory board, said, “Our role is to ensure that the bank remains responsive to the needs of the community. We’re the bridge between the bank and the people it serves.”

Terri Gomez, SWHB’s senior relationship manager, added, “When you apply for a loan with us, you’re not dealing with an algorithm or a faceless committee halfway across the country. We are guided by the needs of the Tucson community, creating a healthy financial ecosystem across Southern Arizona.”

But what exactly makes a bank a “community bank?” The Federal Deposit Insurance Corporation generally defines community banks as those with less than $10 billion in assets. However, the true essence of a community bank

“

We’re still the same team with the same focus that Tucsonans have trusted for 22 years.

Our merger has simply given us more tools to serve our community better.

”

– Sean Murray Tucson Market President Southwest Heritage Bank

lies in its approach to banking. These institutions are deeply rooted in their local areas, reinvesting deposits back into the community through loans to local businesses and individuals.

Some confuse the term “community bank” with a credit union. While they are similar, there are some key differences. Community banks are shareholderowned and maintain a focus on small business. Credit unions mostly focus on individual clients and are memberbased, non-profit organizations, allowing for more favorable income tax treatment. Typically, members must be part of a specific group to join a credit union.

In an age of digital banking and fintech disruption, the community-based SWHB competes by blending modern technology with personalized service.

The bank offers all the digital conveniences of larger institutions – online banking, mobile apps, remote deposit

PHOTOS BY BRENT G. MATHIS

Southwest Heritage Bank’s branch managers, from left – Roberto Castelo, Green Valley; Sarah Roush, Oracle/Ina; Mary Kay Boggie, Williams Center.

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capture – coupled with the personal touch of a community bank. Clients have access to a range of traditional banking services, including savings and checking accounts, loans and mortgages for both individuals and small businesses.

SWHB’s local focus extends beyond its banking functions to community involvement and philanthropy. The bank actively partners with local organizations and supports community initiatives, demonstrating that modern banking can coexist with traditional community values.

SWHB remains committed to the principles that have guided the bank for more than two decades: prioritizing customers and clients, valuing employees, and creating shareholder value.

This balanced approach ensures that all stakeholders benefit from the bank’s success.

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Looking ahead, the bank’s priorities include further enhancing its technological capabilities, expanding its range of services, and deepening its community relationships. However, the core mission remains unchanged: To be a reliable financial partner that understands and supports the unique needs of Southern Arizona’s communities.

To maintain its local-first approach, SWHB’s strategy involves preserving strong local leadership and decisionmaking authority in each of its markets.

While each of SWHB’s markets offer unique characteristics, the goal remains unified in advancing the communityfocused mission. This ensures that the community bank ethos remains intact even as the institution grows.

SWHB is not just a place to deposit checks or apply for loans; it’s a financial institution deeply invested in the success and well-being of the communities it

BizBANKING serves. In the world of banking, SWHB is proving that it’s possible to think globally while acting – and banking – locally.

Murray said he hopes people will realize that SWHB is not a new bank in town but rather the continuation of Commerce Bank of Arizona.

In an era where banking often feels impersonal and detached, SWHB stands out for its commitment to community-focused finance. It’s a reminder that even as the financial world becomes increasingly digital and global, the demand and desire remain for local banks that prioritize personal relationships and local knowledge.

For Southern Arizonans, SWHB represents not just a bank, but a true community partner that lives and works alongside the people it serves. It’s a testament to the power of collaboration and innovation in the banking industry.

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BizCOMMUNITY

United Way Takes on More

Homelessness, Mental Health Become Priorities

By Valerie Vinyard The United Way tried to make life better for more than 48 million people worldwide last year, nearly a half million of those in Southern Arizona. With its long history of tackling society’s most difficult issues, the United Way of Tucson and Southern Arizona is expanding its efforts to tackle two of the toughest – homelessness and mental health.

The international organization, which was founded in 1887 in Denver and is engaged in more than 1,100 communities in 37 countries and territories, boasts a tall mission: “Building a thriving community by uniting people, ideas and resources.”

It wasn’t until 1922 when the United Way of Tucson and Southern Arizona started as the Tucson Community Chest and ran its first annual campaign that December.

Melissa D’Auria, VP and chief advancement officer for United Way of Tucson and Southern Arizona, expanded on her organization’s mission.

“I think we all know and understand the issues facing our region are complex,” she said. “We can’t solve major issues like homelessness and educational attainment with one solution for one area of town. We need the county, the city, nonprofits, school systems and community members all working together to change things at the root.

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“We break down silos, bring funding in from outside the region and create pathways for local donors to establish data-driven strategies that impact this generation and the next. That’s what United Way does.”

Recently, the organization identified and started addressing two new issues: homelessness and mental health. United Way focuses its work on four pillars – educational success, financial wellness, healthy living, and housing stability and homelessness.

D’Auria noted that while the United Way has offered existing programs in homelessness and mental health in the past, the two issues haven’t been a part of its core strategic imperatives.

“Our United Way hasn’t ventured into these new areas before,” she said.

“The community responded and wanted their United Way to focus on these critical issues affecting our community.”

United Way is already making an impact. D’Auria said more than 3,000 individuals and families have been provided with emergency support services and more than 18,000 older adults have been provided with supportive services to remain and age at home.

This short-term help can be a lifesaver. D’Auria pointed out that the majority of Arizona households who fall behind on rent only need one to

two months of income to catch up.

Short-term, intensive assistance is often enough to help them get back on their feet and start re-building stability.

She added that $50 million has been advocated for federal funding to create three new housing developments for 55-and-older populations.

United Way also has made forays into protecting Southern Arizona residents from eviction. Through a partnership with the Siemer Institute, United Way of Tucson and Southern Arizona is supporting four local organizations to offer eviction prevention resources such as housing case management and financial education and coaching for families.

D’Auria said that in 2022, the United Way’s eviction prevention efforts supported 116 families, which included 266 children. She said that all of the families engaged avoided a move that would have disrupted their children’s health or education.

“United Way of Tucson belongs to this community,” said Tony Penn, United Way’s president and CEO. “We work at the pleasure of our stakeholders, beneficiaries and partners. We heard loud and clear that mental health and affordable housing need United Way’s strategic advantage. We’re primed to take a continued on page 154 >>> www.BizTucson.com

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BizCOMMUNITY continued from page 152 collaborative approach to increase our impact in these areas.

“There’s never been a better time to invest in these issues that are clearly visible every day.”

Another success has been the Cradle to Career Partnership, which started in Tucson in 2015. It is one of 80 chapters nationwide but the only one in Arizona.

Cradle to Career is a results-focused collaborative committed to ensuring that youth in Pima County have access to opportunities to succeed in school and life. Three goals define the work of its partnership: Thriving Futures, Empowering STEM Innovators and Leaders in Literacy.

Melissa Hernandez, associate VP of Cradle to Career Partnership, calls the program a “premiere educational initiative” and said there’s a readiness for this that they haven’t seen before.

“I think there is an acknowledgement in our community that we want better for all of us. Our community is ready for change,” Hernandez said. “We really are bringing partners across various

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sectors to address generational poverty.”

As part of this, United Way offers monthly workforce readiness workshops to 16- to 24-year-olds known as “opportunity youth,” meaning they’re often not working or going to school.

That also includes Leaders in Literacy work, which helps Pima County teachers improve their skills.

“It helps teachers become master teachers, which helps teachers stay teaching,” said D’Auria, who noted that a significant percentage of K-8 teachers leave the field in less than five years.

“Our Cradle to Career Partnership is receiving national attention for their collaborative and innovative work impacting Pima County’s educational system,” Penn said. “This exciting work is reaching teachers, students, parents and administrators like never before.

This designation is an honor and tells our community that the status quo is no more – we’re making moves that are already impacting the future of this region.”

In order to do all of this good, the United Way must garner enough funds.

“More than one-third of our funding

comes from grants – an incredible resource, but they can be unpredictable,” D’Auria said. “We need donors and corporations to understand that investments to United Way of Tucson stay here, help real people and ultimately bolster the economy.”

D’Auria noted that 83 cents of every dollar donated to United Way goes back into the Tucson and Southern Arizona community.

She said that the United Way is putting anywhere between $10 million and $24 million back into our economy annually. These funds support dozens of programs, multiple counties and hundreds of thousands of people.

“United Way can be hard to understand and hard to talk about because of the vast and complex nature of this social service model,” D’Auria said.

“What we want the community to know is we’ve been filling in the gaps and supporting Tucson and Southern Arizona for more than 100 years. Without this United Way, our donors, stakeholders and supporters, Southern Arizona would look very different.”

Biz

www.BizTucson.com

BizPEOPLE

Kelly Huber

Kelly Huber has been appointed the new executive director of The Marshall Foundation.

Huber brings with her more than 20 years of experience in the nonprofit sector, including more than a decade of service at the Community Foundation for Southern Arizona, where she most recently was VP for philanthropy. In its 2024 giving, the foundation awarded more than $816,000 to 21 nonprofits and initiatives.

Travis Jones BeachFleischman PLLC has announced the promotion of Travis Jones, CPA, to Innovation Principal. Jones will lead efforts to enhance the firm’s client experience, drive digital transformation, explore new business models, and optimize data-driven insights. He has 17 years of experience serving in the firm’s accounting & assurance department.

He also leads the firm’s technology committee, which monitors and evaluates current and emerging technologies.

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David Gordon Executive Director Special Needs Solutions

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BizAWARDS

The Right Equipment

Special Needs Solutions Builds Tools to Help Disabled

By Tom Leyde Special Needs Solutions helps Southern Arizona’s disabled citizens live better lives every day.

The nonprofit, started in 2018 by executive director David Gordon, creates equipment at its shop at 4555 S. Palo Verde Road, Suite 131.

It was honored for its efforts at the ninth annual Social Venture Partners Fast Pitch Tucson event Mar. 26 at Fox Tucson Theatre. The group won the $10,000 Tucson Electric Power’s Power to the People Award, voted on by audience members.

Special Needs Solutions also received the $10,000 Judge’s Award, the $5,000 Anne Maley & Tim Schaffner Innovative Solutions Award and the $2,000 Steve Goulding Celebration of Life Award, for a total of $27,000.

“It’s very gratifying,” Gordon said. “I very much appreciate that they appreciate what we bring to the community.”

Just what does the nonprofit make?

“At the moment, we are adapting a saddle for a young woman with cerebral palsy who wants to ride horses,” said Gordon. A back support and straps will allow that to happen.

For a boy who likes to make music on a keyboard but could only pummel it hard, the crew made a plexiglass case for the keyboard so he can pound on it and not destroy it.

Another woman with cerebral palsy operates a communication device with her toes. A special chair was made that reclines, making it easier for her to operate the device. www.BizTucson.com

Environmental adaptations, habilitation equipment, sensory equipment and positioning equipment are all within the realm of Special Needs Solutions.

Gordon is the only paid employee. The work is mainly done by some 20 volunteers and the group only charges for materials. The overhead is paid for through donations and grants.

Special Needs Solutions has a 2,500-square-foot building. “Everything is made right here,” Gordon said. “We have a big sewing shop, varnishing shop, wood shop, electronic shop and we do some welding too.”

“It’s a dream come true,” Gordon, 73, said of his position as executive director. “I am blessed to be able to be involved with this. Every day, all we do is help people have a somewhat better life.

People can’t believe it when they ask the price (of a special item),” he said. “Often, they just burst into tears. It happens almost every day here.”

Originally from Lancaster, Calif., Gordon earned a master’s degree in marriage, family and child counseling at the University of California Santa Cruz. He spent 40 years as a psychologist and psychotheraptist, traveling the world conducting seminars. He also taught elementary school for a time.

“I like to make things and fix things and I could not help and fix kids in class every day,” he said. So, he started building and remodeling houses. Eventually, he met Rhonda Chance at the Arizona Office of Development for Disabilities in Tucson.

Chance started a program called the Adaptation Station, adapting equipment for the disabled. It grew and Gordon joined the program. After 26 years, Chance retired and Gordon took over.

But the station closed in April 2018 after Arizona’s Developmental Disabilities Division cut funding and limited what it could provide for adults and children living with different challenges.

That’s when Gordon decided to create Special Needs Solutions, taking the state program’s volunteers with him.

His brother, a lawyer, convinced him it wouldn’t be that much trouble to start a nonprofit. “It’s the best thing I ever did in my life,’ Gordon said. “I enjoy my life. I think it’s amazing now.”

“Now we make whatever we want for whoever we want,” Gordon said.

“We’re free to take on any equipment challenge that people need.”

People seeking special equipment for the disabled can call or write Special Needs Solutions, Gordon said. Requests come from families and from occupational and physical therapists.

“There’s some things that take more trial and error and some things that take more time,” Gordon said. “For us, it’s just a challenge and we figure it out. ...

If it’s difficult, then it’s a pleasure, because then we get to say, ‘OK, how do we do this?’”

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Oro Valley Chamber of Commerce 2024 Awards The Oro Valley Chamber of Commerce presented its 2024 awards at its annual meeting and awards breakfast on Aug. 13.

The event, which was held at the El Conquistador Tucson, a Hilton Resort,

also included a nonprofit fair, highlighting several community organizations and enabling them to connect with business professionals.

The annual meeting is a large community event in which the Chamber

offers a comprehensive progress report and honors the exceptional businesses and individuals throughout Oro Valley.

Biz

THE LIST OF THE 2024 WINNERS: 1. Small Business: Crispin and Lizzy Jeffrey-Franco, Stacks Book Club

5. Community Leader: Renee Deeter, Cabi

2. Midsize Business: Lindsey Wiederstein, OOROO Auto

6. Legacy Award: Larry Clark and Stephanie Urdiales, Golden Goose Thrift Shop

3. Large Business: Cody Barnhart, Oro Valley Hospital

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4. Nonprofit: Tom McKinney, Interfaith Community Services 158 BizTucson < < < Fall 2024

Lifetime Chamber Member: Cathy and Bob Workman, Workman Insurance

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PHOTOS: COURTESY ROTARY CLUB OF TUCSON

BizCHARITY

18th Annual Tucson Classics Car Show The 18th annual Tucson Classics Car show, presented by Rotary Club of Tucson will be held Oct. 19 at The Gregory School.

Over the show’s past 17 years, the Rotary Club of Tucson Foundation has raised more than $2.6 million dollars for local charities. Over 200 local volunteers, thousands of volunteer hours from Rotary members and other community members, and countless in-kind contributions from area businesses have made this event possible every year.

This year, over 420 classic vehicles will be on display, including classes for Resto-Mod/Pro-Touring and Tuners.

The grand raffle prize is a 2017 convertible Corvette (or winner may choose a $40,000 cash option). Tickets are $10.

Additional raffle prizes include $2,000 in appliances from Tucson Appliance Co., $1,000 in car care from Jack Furrier Tire & Auto Care, or $500 in ink cartridges from Cartridge World. Sponsored by WeBuyHouses.com

This year’s benefiting charities are: Pima Community College Center of Opportunity Pima Community College Center of Opportunity is a three-year beneficiary of show funds and last year, received $80,710. PCC’s workforce program provides a pathway out of poverty for residents in temporary housing at Gospel Rescue Mission’s Center of Opportunity. The program’s goal is to provide tuition-free training and future employment in four focus areas: Building & Construction Technology, Culinary Arts, Information Technology, and Logistics/Truck Driving.

TUCSON CLASSICS CAR SHOW

BizEVENT

Saturday, Oct. 19, 10 a.m. to 4 p.m.

Tickets: $10 For more information: www.TucsonClassicsCarShow.com

Wright Flight The Mission of Wright Flight is to use the inherent motivational power of aviation as a stimulus for students to set and achieve goals in their educational and personal development. Using examples of aviation role models, it teaches students that through commitment and hard work, they can achieve their own goals, earn the reward of exciting aviation-related activities and develop a positive self-concept.

Sister José Women’s Center Sister José Women’s Center shelter expansion project will add 5,460 more safe nights of sleep for Tucson’s unsheltered women, including those living with multiple disabilities and age-related illness. Its center provides women with a safe environment to recuperate from the struggle of homelessness and extreme poverty. With this funding, Sister José Women’s Center will increase its overnight capacity by 35% and provide secure shelter for 57 women, including their pets, every night. Support services help women stabilize their health and begin the process of becoming permanently housed.

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BizCOMMUNITY BEN’S BELLS

HABITAT FOR HUMANITY

COMMUNITY FOOD BANK

Long Realty Cares Foundation Donates More Than $4 Million to Community The Long Realty Cares Foundation has achieved a milestone in its mission to support the Southern Arizona community. The foundation has exceeded $4 million in grants awarded to Southern Arizona nonprofits since its inception in 2002.

This achievement underscores the power of collective effort and the profound impact that can be achieved when a community and organization unite with a shared purpose, the foundation said in a news release.

It was reached largely due to the generous annual donations from Long Realty Company and the unwavering commitment of Long Realty agents and staff, whose contributions constitute the majority of the funding. Many agents and staff members also extend their support by volunteering with local charitable organizations.

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“We are deeply grateful to everyone who has contributed to this milestone,” said Ron Sable, the foundation’s president. “Our donors, volunteers and partners demonstrate extraordinary generosity and dedication. Together, we continue to create lasting positive change in our community.”

Sable brings a wealth of experience and dedication to his role as president.

As former chairman of the United Way of Tucson and Southern Arizona, a decorated U.S. Air Force veteran, and a respected business consultant, Sable has been with Long Realty as an agent since 2013. The foundation board is composed of representative and volunteer Long Realty agents and staff.

Since 2002, the foundation has been committed to identifying and supporting local organizations addressing a wide range of needs, from education

and healthcare to housing and social services. Its mission is to offer hope to those needing shelter, sustenance, and comfort while serving the needs of the communities where agents work and live.

The $4 million in grants enabled numerous meaningful projects that have significantly improved the quality of life for many individuals and families in Southern Arizona.

Grant recipients have included Youth On Their Own, Tu Nidito, Literacy Connects, Step Up To Justice, Casa de los Niños, Ben’s Bells, Integrative Touch for Kids, Artworks, Greater Vail Community Resources, Boys and Girls Clubs of Tucson, Children’s Clinics, and many others.

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PHOTO: COURTESY LONG REALTY CARES FOUNDATION

YOUTH ON THEIR OWN

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BizRANKINGS

TUCSON On The Radar How the Region is Getting Noticed

Tucson is No 1 Fastest-Growing Hiring Market for New College Grads

CNBC Based on data from LinkedIn, CNBC reported that the Tucson metro area is the top fastest-growing job market for entry-level roles. The ranking is based on where LinkedIn members listed their first jobs after graduating college in 2023 versus in 2022.

The job site identified the regions that saw the most growth and also analyzed which industries are on a hiring spree for new grads.

For Tucson, the top industry is manufacturing, according to the list.

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Tucson Named Top U.S. City in West for Gen Z in 2024

Commercial Café The commercial real estate blog set out to highlight cities with the greatest potential benefits for Gen Z, ranking cities by Internet cost, employment for new graduates, affordability and places for recreation.

Tucson ranked No. 8 among the country’s top cities with a total of 57.7 points while also placing No. 1 regionally.

Tucson Ranks No. 15 Among Up-andComing Markets for Tech Talent

CBRE Tucson was included among the top 25 North American markets for potential talent pools in tech.

Ranking No. 15, the city is one of several markets highlighted for employers seeking to expand their geographical reach and opportunities.

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