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BizLETTER GOING FOR GOLD

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Summer 2012

Volume 4 No. 2

Publisher & Owner

Steven E. Rosenberg Brent G. Mathis

Creative Director Photo: Steven Meckler

In business we all try to leverage our assets – and go for the gold. As a mid-size market we’ll never attract the NBA, MLB or NFL, but being anchored by an NCAA Division I university has made us a great college sports town. Our city also has become an Olympic training ground for some of the world’s finest athletes and coaches. This edition is in part a celebration and a salute to our Olympic hopefuls. Their dedication and commitment to excellence make us proud. Steve Rivera provides us with a preview of some of the stellar performers with Tucson ties who are going for Olympic gold in London – more than 50 athletes in a wide variety of sports (on land, sea and air). The best sentiment of all comes from three-time Olympic medalist Bernard Lagat, who tells us, “In the other Olympics I was just happy to be there. I just wanted to do my best. Now I want to win. It’s my No.1 priority. This is the moment.” He’s trying to become the first American to win the 5000-meter run since Bob Schul did it in Tokyo in 1964. Lagat is preparing for his fourth Olympic games. Vying for coveted Olympic team status is Brigetta Barrett, a University of Arizona junior majoring in theater arts. At press time, she had the No. 3 best high jump in the world. Then there’s Tucson’s tourism team at the Metropolitan Tucson Convention & Visitors Bureau and their new strategic partnership with UA Athletics Crew. The MTCVB team and Greg Byrne & Co. have collaborated to create a vision for what our community can become. Hosting and producing more championship sporting events will attract more visitors to our expanding selection of venues, causing our region’s revenues to climb. Other strategies, including focusing on the film industry and partnering with the university’s Hanson Arizona Film Institute are outlined in the report. In our special report on tourism, you’ll also get the opportunity to meet Brent DeRaad, the new president & CEO of MTCVB. DeRaad has a passion for the industry and a vision for our Sonoran desert. He’s calling for an increased marketing investment in 10 major markets. Tourism is our region’s $2.5 billion industry, and is definitely goin’ for gold.

The BizTucson “dream team” of Rivera, Christy Krueger, Teya Vitu, Edie Jarolim, Gabrielle Fimbres, Romi Carrell Wittman and “Coach” Donna Kreutz lead the way with medal-worthy reports. This issue has something for every reader’s taste. Vitu reports on Len Jessup, the UA business college dean, as well as UA Engineering Assistant Professor Erica Corral. Vitu also provides us with an interesting glimpse of the new CEO of the Critical Path Institute, Dr. Carolyn Compton. Eric Swedlund files a compelling report on UA breast cancer researcher Joyce Schroeder. You’re sure to be inspired by Fimbres’ profiles on four Father of the Year honorees, selected by the Father’s Day Council Tucson. Besides being role model dads and true givers to our community, they’re committed to efforts to fund vital type 1 diabetes research at Steele Children’s Research Center. There’s a wide variety of business covered in this edition: the arts, investment, medicine, automotive, construction, aerospace, real estate, accounting, technology and more. To top it off, for all who dream of writing the great American novel, we have a real-life mom who walked away from a career in banking to self-publish three novels. Read a fascinating account of how creative marketing – along with Amazon and Kindle – got Kate Mathis “on the radar,” as they say. Her first novel climbed to No. 14 out of the Top 100 Kindle e-books. Have a terrific summer, and don’t forget to start it in your own backyard. Check out the resort update on page 101 for some cool staycation ideas.

Contributing Editors

Donna Kreutz Gabrielle Fimbres

Seth Norris Mike Serres

Contributing Technology Director

Contributing Cuisine Writer Edie Jarolim Contributing Event Coordinator

Yvette Critchfield

Contributing Writers

Sarah Burton

Mary Minor Davis Pamela Doherty Gabrielle Fimbres Edie Jarolim Donna Kreutz Christy Krueger Ethan Orr David B. Pittman Brad Poole Steve Rivera Monica Surfaro Spigelman Eric Swedlund Teya Vitu Romi Carrell Wittman

Contributing Photographers Carter Allen

Kris Hanning Brent G. Mathis Steven Meckler Chris Mooney Balfour Walker

Member:

Metropolitan Tucson Convention & Visitors Bureau Tucson Advertising Federation Tucson Hispanic Chamber of Commerce Tucson Metro Chamber Tucson Regional Economic Opportunities (TREO)

BizTucson Phone: 520.299.1005 Subscription Information:

www.BizTucson.com subscriptions@BizTucson.com Advertising information:

Steve Rosenberg 520.299.1005 or 520.907-1012 steve@BizTucson.com BizTucson is published quarterly by Rosenberg Media, LLC. ,Tucson, AZ © 2012 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.

POSTMASTER:

Steven E. Rosenberg Publisher & Owner, BizTucson

Please send address changes to: BizTucson, 4729 East Sunrise Drive, #505 Tucson, AZ 85718.

Biz www.BizTucson.com


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BizCONTENTS

FEATURES

SUMMER 2012 VOLUME 4 NO. 2

COVER STORY: 46

44 80

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BizSPORTS Going For Gold: Olympic Hopefuls with Tucson Ties

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BizMARKETING Long on Innovation

DEPARTMENTS

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BizTECHNOLOGY UA Celebrates Innovation

BizDOWNTOWN Downtown Rebounds on 2nd Saturdays

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BizEDUCATION Getting Down to Business at UA Eller College

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BizMEDICINE Construction Update: Tucson Medical Center

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BizHEALTH Children’s Wellness Crusader

115 116 122

BizHEALTHCARE El Rio Receives $5 Million Federal Grant

4 26

BizLETTER From the Publisher

28

BizAUTHOR Between the Lines: The Novels of Kate Mathis

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BizARTS The Loft Cinema’s High-Tech Vision

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BizEDUCATION Tucson Metro Chamber’s Education Summit

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BizAWARD Jon & Heather Volpe Honored

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BizPHARMACEUTICAL Critical Path Institute’s New CEO

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BizENTREPRENEUR Taking Aim at Archery

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BizSPORTS Olympic Training Ground

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BizBIOSCIENCE Ventana Medical Systems Hosts Global Symposium

BizSALES Guru Jeffrey Gitomer

BizLEADERSHIP Energize Your Enterprise

67 BizSPECIAL

REPORT

TOURISM: Sporting New Strategies

74 Tourism: $2 Billion Economic Impact 80 Leading a New Era: President & CEO, Brent DeRaad 82 Getting “Real”: Marketing Strategies, Allison Cooper 84 Partnering to Grow Tourism: Arizona Athletics & MTCVB 89 Tucson’s a Natural for Geotourism 90 Lights, Camera, Action: Film Industry

BizHONORS 2012 Father of the Year Honorees Paul Bonavia John Rafferty Joaquin Ruiz Ron Shoopman BizCOUPLE Positive Energy for Diabetes Research

BizINVESTMENT 124 Trending in Tucson: Upscale Rentals 126 128

BizBOOK Canyon Ranch Founder: “Restless Visionary” BizAUTOMOTIVE Expanded Facility Increases BMW Sales

BizRESEARCH 130 Breast Cancer researcher Joyce Schroeder 132 134

BizMEDICINE New Patient Model: Based on Old-Time Medicine

136 142

BizAEROSPACE Business Leaders Support F-35

BizMILESTONE R&A: 70 Years in the Numbers Game

BizAWARDS Cornerstone Building Foundation Awards

BizGOVERNMENT 145 Mayor: First 180 Days

96 Mexico Ready Workshops 98 Tucson Jewel for Gems Year Round 101 Business looking up for Resorts 106 BizART: Glass Act 12 BizTucson

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108 MTCVB Board of Directors

ABOUT THE COVER

“Going For Gold”: Bernard Lagat Photo: Chris Mooney, Created by Brent G. Mathis


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Downtown Rebounds on 2nd Saturdays

PHOTOS: LEIGH SPIGELMAN

By Monica Surfaro Spigelman

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BizDOWNTOWN Even with streetcar construction underway, is downtown’s trademark event – 2nd Saturdays – still an essential Tucson gathering point? You betcha. The hip, grit-and-glam monthly festival is tweaking its configuration to keep its popular urban entertainment scene alive during downtown street closures. Tucson’s quirky 2nd Saturdays continues to inspire a return to a successful combination of life, arts and business, said Michael Keith, CEO of Downtown Tucson Partnership. Even independent entrepreneurship and small businesses are getting a boost from the urban street fest that now accounts for bringing 15,000-plus downtown each month, he said. “We’re beginning to see the power of this long-term event and how people are attaching themselves to it to achieve other goals,” he said. Revived in May 2010 by an enterprising group led by Providence Service Corp.’s Fletcher McCusker, this latest iteration of a trendy Tucson block party is fueling the economic engines of many local businesses. Once a happening that overtook downtown regularly – it’s based upon Downtown Saturday Nights begun in1988 – today 2nd Saturdays is the crux of three-legged formula for downtown vitality, Keith said. One leg is an increase in event staging downtown: “We’re now looking at more than 40 events September through May bringing about 250,000 people with them. 2nd Saturdays is at the heart of the momentum.” Cross-marketing opportunities for current businesses plus the emerging recognition that retail is sustainable comprises the second leg. “2nd Saturdays regularly coordinates merchant promos, bar specials and venue happenings. You have everyone now saying ‘hey, there’s opportunity here.’” The third leg of the formula is how 2nd Saturdays sets the stage for an entertainment-culture corridor that provides spinoff benefits. “This unique and artfully rich happening translates directly into support for local businesses,” Keith said. Although streetcar construction is bringing challenges, diverse enterprises are encouraged by the vitality being injected into a downtown once languishing. www.BizTucson.com

“With 2nd Saturdays generating more business, it is an antidote to economic hard times,” said Huna Hammond, founder of Event Horizon Productions, who along with partner Gary Wagner, has provided lighting, sound, video, power and production management for Tucson corporate, education and entertainment events for more than a decade. The 2nd Saturdays opportunity helped businesses like his survive economic hurdles and in his case boosts business by 30 percent, miraculously replacing revenue from other events that have not survived the budget reductions in the public and private sectors. “It’s the bread and butter that form the spine of cash flow,” said Hammond, who explains that 2nd Saturdays’ consistency is what is so appealing to businesses like his. “It’s a tremendous shot in the arm financially.” Joanne Diggins of Diggins Environmental Services is no entertainer, but she represents another example of 2nd Saturday business success. Diggins established an environmental services di-

Fits and Starts 1988 to early 1990s – Downtown Saturday Night spotlights Congress Street art galleries. The event is managed by Tucson Arts District Partnership. 1999 to 2006 – A new Business Improvement District is created and a series of urban street parties continue to be staged by the newly created business improvement district, the Tucson Downtown Alliance. 2008 – After a few years’ hiatus, revivalists stage Congress Street Urban Block Party, focused on bringing back a family-friendly atmosphere complete with performance artists, gallery openings and street vendors. 2009 – 4th Avenue Underpass reopens. Fletcher McCusker plans to move his Providence Corporation downtown and spearheads a committee along with former BID director Donovan Durband aimed at reviving weekend street fests. May 2010 – The program is retooled as 2nd Saturdays and creates a new urban vibe.

vision in 2009, and her venture supplies portable restroom and handwasher service to 2nd Saturday events. This has added more than 3 percent to her monthly revenue base, but the branding opportunity is the big plus for her business. “Being a 2nd Saturdays vendor has given us invaluable exposure in the community, and helped open the door for servicing other events such as Spring Fling, UA tailgating, St. Patrick’s Day Parade & Festival and more,” said Diggins, whose family business has more than 30 years of service and three generations in Tucson. Orlando Saldarriaga manages another business with plenty of what an urban street fest needs – table and chair rentals. Orlando and Cria Saldarriaga, who began Party Express Rental Equipment 13 years ago, see tremendous advantage in regularly scheduled events like 2nd Saturdays. “It’s exactly like having a gem show, only business is every month,” said Saldarriaga. 2nd Saturdays intends to provide a bit of relief as downtown feels the impact of the streetcar construction project currently underway. “We are using 2nd Saturdays to bridge discomfort during upheaval, said Keith, noting that the event is moving stages, streetside performances and street-vendor areas in conjunction with construction to best support businesses. During construction, four parking garages will be open and accessible – Centro Garage, located just as you enter downtown from the east; Depot Garage, located below Martin Luther King building; the Pennington Garage, accessed via Pennington Street from either Stone Avenue or 6th Avenue, and La Placita Garage on Jackson Street. Information and event maps are updated regularly at www.2ndSaturdays.com. The ultimate goal is a permanent transportation system supporting a vibrant urban core – made even more electric by events like 2nd Saturdays. “The walk-ability of it, the add-on benefits – it’s all positive vibe,” said Keith.

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Author Kate Mathis

Between the Lines 28 BizTucson

PHOTO: BRENT G. MATHIS

By Gabrielle Fimbres

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BizAUTHOR Surrounded by stacks of laundry and with endless diapers to change, Kate Mathis needed a break. The young Tucson mom spent the week caring for her adorable twin daughters, reading nursery thymes and playing patty cake. When the weekend came, that was her time. With husband Brent left behind as chief cook and bottle washer, Mathis – armed with her laptop – would sneak off to the corner fast-food joint for refuge. It was there that Agent Melanie Ward was born in her first novel, “Living Lies.” “I don’t know what my goal was,” Mathis said. “I wanted to get away from diapers and bottles and laundry.” With the babies now in middle school, Mathis is the author of two Agent Melanie Ward novels, with a third due out this summer. She also has delved into the world of young adult literature with “Moon Over Monsters,” now on Kindle and due out in print this summer. Mathis, a third-generation Tucsonan and Salpointe Catholic High School and University of Arizona grad, was raised in a family of postal workers who believed in steady jobs with good income. After college, Mathis chose banking. Once her girls were born, Mathis found that much of her paycheck was going to daycare. “I wanted to do something where I could work and still take care of the girls,” she said. Born were the weekend writing marathons at McDonald’s. “All of my characters have some of me in them,” Mathis said. “I’m just not

telling which parts.” The road to becoming a published author, as one might expect, was not simple. After she thought she had finished “Living Lies,” Mathis attended a writer’s workshop at Pima Community College. It was there that she discovered novels are at least 80,000 words. Hers

No.1 Action & Adventure No.1 Spy Stories & Tales of Intrigue No.14 Top 100 Kindle eBooks Top Amazon rankings of ebook categories for “Living Lies”

Kindle Nation Sponsorship Results 4/27/2012

weighed in at 60,000. It was back to McDonald’s for rewriting. Mathis would spend the week thinking about her characters then write about them on weekends. Soon it was time to put Melanie out there, and Mathis submitted “Living Lies” to about 60 literary agents. They all turned her down. “They tell you don’t take it personally – but how can you not take it personally?” After she received the final rejection, her husband posed the question: “Why don’t we just do it ourselves?”

Mathis and her husband, published “Living Lies” in 2009 and PowWow Publishing was created. Together they have handled all marketing and distribution. They have attended book festivals, author signings and special events at retirement homes, art festivals – you name it. Through it all, Mathis continued writing the adventures of Agent Melanie Ward in “Second Chance,” published by PowWow in 2011. “Melanie does things I can’t do,” Mathis said. “She’s adventurous. She’s brave.” The adventures of Agent Melanie Ward appeal to women of all ages, but the neighbor guy across the street loved it, too, Mathis said. She calls the genre “light mystery, romance, humor, with a chick lit edge to it.” Bonnie Lewis, reviewer for TheVirtualScribe.net, had this to say: “Author Kate Mathis has emerged as a master storyteller, packing each page with plenty of action and leading her characters through life at a hasty pace.” No book is without its critics, which Mathis said has been perhaps the toughest part of the journey. “You put all this out there and then it gets judged,” she said. The judging part is hard, Mathis said, but is softened by the many readers who tell her they couldn’t put the book down. She receives emails from readers around the world, who tell her how much they enjoy getting to know Agent Ward and that they can’t wait for book three. Today, Mathis writes about five hours a day, seven days a week. She sometimes writes from the brick home she shares continued on page 30 >>>

1 & 2 of the Agent Melanie t Books Ward Novels (Book 3 due out late Summer 2012)

u

Moon Over Monsters, Book 1 of Christina’s Chronicles – a modern day fantasy, about a girl, a dragon and an elfin prince

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BizAUTHOR

continued from page 29 with Brent, 12-year-old daughters Samantha and Sydney and Weimaraners Jack, Libby, Tori and Luxa. The characters in her books are never far from her mind. “I’ll be driving trying to figure out her next move,” Mathis said of Melanie and her friends. “I go to bed thinking about them and I wake up thinking about them. They’re like friends.” She is also working on the next installment in the “Moon Over Monsters” trilogy, inspired by a little girl that Mathis and her daughters met a few summers ago. “She had the girls believing she was a fairy, and I thought, well, maybe she is.” With dragons and elves and fairies, “Moon Over Monsters” is the story of a girl who finds out why she is different as she joins her journalist father on a journey to Germany to report on a dragon sighting. “It’s fun,” Mathis said. “You can have a crazy, kooky idea, and it works in that genre.” Mathis is unsure how many copies of her books – in hardback, paperback and electronic versions – have been sold. Melanie Ward novels are sold on Amazon, but the greatest number of sales comes from Kindle. “The eReader has changed the game for little people like me,” Mathis said. “It’s a new world. It’s like your own book festival at your fingertips. The eReader is cheaper and you make more money.” “Living Lies” was given away during a free promotion on Kindle for five days recently, with 25,000 copies downloaded. Mathis said the promotion boosted sales of her other books. Writers can earn a living self-publishing, Mathis said. “The key is you have to have enough books so readers can go to the next and the next and the next. If you have enough product and people like your work, you can make money. And self-publishing allows the author to keep control of the content, the cover, everything.” Her next challenge is a screenwriting class in Los Angeles this summer, coupled with writing the next adventures of her characters. “Everything you do, you have to have fun,” Mathis said. “This is fun.”

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BizARTS

PHOTO: KRIS HANNING

Debi Chess Mabie (left) Director of Development and Educational Programming, The Loft Cinema Peggy Johnson (right) Executive Director The Loft Cinema

The Loft’s High-Tech Art Vision Celebrating the World through Film By Monica Surfaro Spigelman Don’t be fooled by The Loft Cinema’s funky Old Pueblo grit. It only adds to the charm of this independent local cinema that is on its way to building a big-city high-tech art vision for the community. Always a cultural resource that went beyond showing quirky movies, The Loft has fast-forwarded on its dream to build a non-traditional cinematic complex. A $2.5 million Building for the Future Campaign is underway – with more than $800,000 already raised toward that goal. Prepare to be wowed by forward-thinking renovations that signal big things for this Tucson arts showcase and lively gathering spot. Originally opened as an art house in 1972 on Sixth and Fremont, The Loft went through various iterations before at32 BizTucson

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torney Joe Esposito purchased it and ran it as a private independent theatre. The Loft moved to its current location on East Speedway when the University of Arizona needed the original site for additional parking. In 2000, when a core group of movie devotees saw a “for sale” sign go up on The Loft, they were devastated. “About six of us started thinking about what we could do, and in 2002 we made our move, incorporating as a nonprofit and buying the cinema,” recalled Peggy Johnson, one of the original devotees who now is The Loft’s executive director. “We knew without The Loft it wouldn’t be the Tucson we love – so we had to find a way save the cinema,” said Johnson, whose background was in art-films and broadcasting before she joined The Loft. www.BizTucson.com


We want to give the community ways to experience art and ideas from around the world in a venue that not only retains the neighborhood character but makes it a more exciting and fun place to live, work and visit. –

That core group formed The Tucson Cinema Foundation and became The Loft’s new owners. Next step was ensuring a programming mix of critically acclaimed foreign and independent features and documentaries. Then the foundation further enhanced the experience with visiting filmmakers, collaborations with community groups, film festivals (including the free nine-day Tucson International Children’s Film Festival), film series (including First Friday Shorts – now in its eighth year, Late Night Cult Classics and Mondo Mondays) and more. Even with all the arts initiatives, The Loft needed to keep its edge. Running 220+ first-run films a year and 115 special events was taking a toll on the small physical space. The Building for the Future Campaign, Johnson said, will allow expansion, improve accessibility, make necessary repairs and update digital technology. “We are repurposing and renovating as much as possible,” Johnson said. “We want to give the community ways to experience art and ideas from around the world in a venue that not only retains the neighborhood character but makes it a more exciting and fun place to live, work and visit.” The Loft’s Building for the Future projects will be completed in three phases. First is revamping the adjacent J&L automotive repair shop, which will transition into a state-of-the-art black box theatre, with two fully accessible restrooms. An attached covered patio will be a flexible screening space for special events. Also moving ahead this summer is paving a new parking lot, located on adjacent vacant land the Foundation purchased in 2010. The second phase will renovate the existing building. The Loft’s main 500-seat theatre will have new seats, acoustical treatment and other improvements, including infrastructure wiring and air conditioning. The upstairs theatre is envisioned as a “living room” with sofas, armchairs and coffee tables positioned so that each has perfect sightlines. According to Johnson, the entire complex will be a model of accessibility and technology. “We’re consulting with local groups and individuals to ensure that The Loft accommodates every citizen,” she said. All three theatres also will have digital projection and sound, with an acoustical engineer consulting on the design. “This includes upgrading 35mm projection to include reel-to-reel so that we can borrow rare prints from archives,” Johnson said. The final phase will construct a connecting building bewww.BizTucson.com

Peggy Johnson, Executive Director, The Loft Cinema

tween the existing Loft and the new black box facility. This will include a large lobby with a gallery, a larger box office and concession stand, more restrooms, offices and community meeting rooms. A spate of standout events are planned when The Loft unveils Phase 1 this fall. A ribbon cutting for the black box theatre is planned during the Loft Film Festival (November 8-15), on the festival’s closing night – which coincides with The Loft’s 40th anniversary. After the candles are blown out, The Loft expects to continue finding exciting ways to help celebrate the world through film, Johnson said. One goal is to make the film festival a destination festival with economic impact on the community. Another is to evolve The Loft’s successful Science on Screen series into Science on Screen Jr. to help younger children build an interest in science. All this reinforces support already received from donors, including Cox Communications, which made the lead gift to the campaign. “Arts and culture are the foundation of a livable community,” said Lisa Lovallo, VP of Cox Communications. “A prosperous community that has good jobs, good governmental structure and good educational institutions also enjoys strong arts and culture.” Gadabout SalonSpas has pledged $20,000. “It is amazing when neighborhoods get together and make a commitment to better our community and support the arts of Tucson. It is great to look back at the end result and know that you made a difference,” said Frank Westerbeke, Gadabout co-president. Johnson sees The Loft’s role as connective tissue in Tucson. “The Loft has the capacity to inspire, educate and bring the community together with the power of film,” she said. Biz

Building for the Future Campaign The Loft Cinema – Established 1972 Donate online at http://loftcinema.org/thefuture For naming opportunities and program sponsorships: Contact Development Director Debi Chess Mabie:dcm@loftaz.com. The Loft encourages donations that are fulfilled over several years; any amount is welcome.

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BizEDUCATION

Boosting Education Critical for Tucson By Ethan Orr Greatness does not just happen, Bearden tells teachers. It is a choice. The principles of her training are this: First, never lower the standards for teachers or students. Second, create an atmosphere that makes families a welcome part of the educational process, and lastly, create a culture of lifting up others in the school and in the community. These principles, while difficult to achieve, will have a lasting impact on the lives of the children who will be the community leaders of the future, Bearden said. Calvin Baker, superintendent of Vail School District, which has been ranked as the top school district in the state, appreciated Bearden’s perspective, “We are constantly looking for methodologies and technologies to improve edu-

cation. Kim Bearden reminded us those efforts must be built on the foundation of unabashed passion and commitment.” Pima County Superintendent of Schools Linda Arzoumanian reported that only 77 percent of students in the county graduate high school. “What happens to the ones that don’t, or worse yet, the ones that do but graduate unprepared for life? We can and must do better.” The lunch also celebrated educational systems that are working in Tucson. Three schools – BASIS, Sonoran Science Academy and University High School – are in the top 50 high schools nationwide and two school districts, Vail and Catalina Foothills, are in the top 10 districts in the state.

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(L to R) Dr. Vaughn Croft, Senior Program Coordinator, Business Education Partnerships Office of the Pima County School Superintendent; Guy Gunther, Vice President/General Manager for Outstate Arizona CenturyLink; Dr. Ruann Ernst, Chair of the Healthy LifeStars Board.

(L to R) Leonard Jessup, Dean, Eller College of Management, University of Arizona; Kristi Staab, Executive Director, Speaker & Consultant, Kristi Staab Enterprises; Bruce Dusenberry, President Horizon Moving Systems and Tucson Metro Chamber Chairman of the Board.

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PHOTOS: KEVIN VAN RENSSELAER, KVR CREATIVE

When deciding whether to move to a new city, the top consideration for any company is the talent level of the workforce. If the workforce is well trained, they will come. The Tucson Metro Chamber has made education and workforce development a top priority. At this year’s State of Education Luncheon presented by CenturyLink, award-winning teacher Kim Bearden discussed why teachers are important and how to support them. “Think about how many lives are changed for good or for bad because of teachers,’’ said Bearden, who trains teachers in motivation and classroom management at the Ron Clark Academy in Atlanta.

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BizSALES

Sales Moves Creating Ongoing Positive Attitude by Jeffrey Gitomer

I’m in Las Vegas, where nine of the ten largest hotels in the world reside. Each competes against the other for huge contracts. Business meetings. Conventions. Super Bowl. New Year’s Eve. High rollers. Las Vegas – a one-of-a-kind destination. Then the economy crashed. And everyone’s business dropped significantly. Slowly, the economy is rebounding and Las Vegas is experiencing a spurt in business. But the competition is still fierce. So what are these big hotels doing about it? The answer is pretty much nothing special. Bidding wars. Price reductions. Other concessions in order to differentiate themselves from one another and woo the big customers. Each hotel offers amenities and attractions that are unbelievable. Broadway shows. Rock concerts. Prize fights. Great food. And accommodations the likes of which you have never seen. So what’s the difference? I believe every hotel is overlooking THE difference. The difference is service – and the perception that someone cares. That’s memorable service and service recovery. REALITY: These big hotels have policies. They have to in order to deal with thousands of people every day. These big hotels have procedures. They have to in order to deal with thousands of people every day. REALITY: There’s a severe lack of friendliness. There’s a severe lack of sincerity. There’s a sincere lack of attitude. REALITY: The employees take very little pride in serving. They’re just “doin’ their job for their pay.” So much for Las Vegas. Let’s talk about you.

YOUR REALITY: If you employ people who sell, serve and talk to customers on the phone or in person, the key to their success is their attitude, their desire, their friendliness, their sincerity and their love of job.

So, the first question any employee has to ask is: How do I feel about myself ? Because if they don’t feel good about who they are, the rest of their tasks will be executed somewhere between poor and mediocre. Their expressions, their interactions and their casual talk will all be based on negative feelings. Not good. The answer is simple, but not simplistic. All companies (yours included) need to change the way they look at training their people. Most companies have training programs all about how to do a job and circumstances regarding the business (your business). There’s zero about serving with pride, having a great

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attitude and feeling good about themselves, first. For your company to surge past your competitors and be perceived in your market (and by your customers) as the best, here are the 6.5 internal actions you must take starting now: 1. An ongoing positive-attitude course. Something that each person perceives is for their life – not about their job.

2. A course in personal pride, and ongoing events to support it. Teach your people the difference in pride between owning and renting. Encourage them to take ownership. KEY IDEA: Recognition. Make certain that achievement and improvement is rewarded in public. 3. Benchmark “how to respond” to 25 specific situations. Write down the most common customer interactions and create (collaborate to uncover) “best responses” for each. Train everyone in these responses so that there is a common positive language. 4. Create specific empowerment. Once you’ve finished the common language answers, empower every employee with these answers AND other specific recovery options and actions they are allowed to take. 5. Establish a positive workplace environment. Replace old, worn out stuff. Fix broken stuff. Serve free food and drink. Celebrate birthdays and anniversaries. Make your workplace positive so that your employees can be positive.

6. Total company involvement. Leadership must embrace the process and take the training too. This sets the example – and the environment.

6.5 The understanding that communication starts mentally. Create an awareness that each person holds the key to company morale – and that a positive atmosphere starts with positive thought.

BIG SECRET: For the past 20 years, I have espoused the philosophy and strategy of “tell me what you CAN do, not what you CAN’T do.” This one strategy will change your responses from negative to positive. I am willing to bet that your company could stand an injection of “positive.” Go to www.gitomer.com and enter the words Attitude Starters in the GitBit box for a few more ideas on what you can do right now. Happy people create positive results and vice versa. Happy people create loyal customers and unlimited profit opportunities. How happy are your people? How positive are your people?

Biz

Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership and Social BOOM! His website, www. gitomer.com, will lead you to more information about training and seminars. Email him at salesman@gitomer.com. © 2011 All Rights Reserved - Don’t even think about reproducing this document without written permission from Jeffrey H. Gitomer and Buy Gitomer. 704 333-1112 www.BizTucson.com

Summer 2012 > > > BizTucson 37


Jon & Heather Volpe

Jon & Heather Volpe Receive Click for Kids Award By Christy Krueger Thirty-plus years ago Jon Volpe spent every day after school at what is today known as Boys & Girls Clubs of Tucson. Now, as CEO of NOVA Home Loans, he’s one of the organization’s most generous contributors. For that, the clubs are acknowledging his support. Volpe and his wife, Heather, were selected as this year’s recipients of the Click for Kids Award, created in 2009 in honor of long-time supporter Jim Click. The award recognizes an individual, couple or organization that has made a substantial impact on club members. “It’s easy to give your money, and Jon Volpe and his wife, Heather, and their company have obviously been very financially supportive of the Boys & Girls Clubs of Tucson and many other charities,” Click said. “However, to give of your time, energy and effort on the board, raising money and bringing awareness to the club like Jon and Heather have done is 38 BizTucson

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truly a gift of the heart. I congratulate them on receiving this wonderful award.” Volpe is a prime example of the positive influence the BGCT makes on Tucson’s youth. He believes that without its support, he might have ended up in a bad place as others without direction often do. “My older brother opted not to go there and he’s been in and out of prison since he was 17. Had I not gone to the clubs, I probably would have tagged along with my brother and wouldn’t be where I am today. It kept me off the streets and was a place to hang out.” Heather added, “It’s a way for kids to stop the cycle of dysfunction. People take them under their wing and show them things they wouldn’t otherwise experience.” While Volpe didn’t continue at the clubs in high school because of his participation in sports, BGCT and its mentors www.BizTucson.com

PHOTO: CARTER ALLEN

BizAWARD


Had I not gone to the clubs, I probably wouldn’t be where I am today. It kept me off the streets. –

Jon Volpe, CEO, NOVA Home Loans

were still part of his life. “I wanted to go to football camp and didn’t have the money. Jim Click sponsored me to go. He wrote a check. I received awards in high school and he was always there, remembering my name and encouraging me,” Volpe said of the man he considers his hero. Click’s involvement continued after high school, when Volpe earned a four-year football scholarship to Stanford University as a running back, leading the Pac-10 Conference in rushing one year. Volpe went on to play in the Canadian Football League and in the National Football League with the Pittsburg Steelers until an injury sent him home and he began working at NOVA Financial. Meanwhile he had married Heather, whom he met while both attended Amphitheater High School. Once he was settled back in Tucson and earning a steady living, Volpe started to look around and appreciate how far he’d come. “I wanted to give back because of the support I received – from teachers, coaches, Jim Click, Boys & Girls Clubs. We started giving financially.” Later, NOVA began sponsoring major club fundraisers and the couple started volunteering as judges for the clubs’ Youth of the Year Awards. “It’s a very emotional day,” said Heather. “You get to hear what they do for the kids.” For Jon, the kids’ stories bring back memories of when he was in their shoes. “Listening to their backgrounds, I can relate to what they say. That was me – I was in the same situation.” Quite appropriately, Click was the person who notified Volpe about his selection for the Click for Kids Award. “It meant a lot to me that he told me – because I grew up wanting to someday be like him and helping the Jon Volpes of the world. Nobody does that more than Jim Click.”

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Taking C-Path to Next Level Dr. Carolyn Compton, CEO, Critical Path Institute 40 BizTucson

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Photo: BalfourWalker.com

By Teya Vitu

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BizPHARMACEUTICAL A big change is in the air at the Critical Path Institute, the Since 2005 Woosley built a C-Path that covers 17 time organization charged with bringing the entire pharmaceutical zones with 41 pharmaceutical giants on board to share drug world together to deliver safer drugs to market faster. research data, successes and failures. This has assembled the Its founder and chief executive for the first seven years – largest databank in the world on Alzheimer’s disease. Clinical Ray Woosley – stepped aside Feb. 1. Woosley cringed when trials that used to take three years to get off the ground now he saw the C-Path board trying to find another Ray Woosley can get launched in three months. to replace him. C-Path essentially is the meeting planner for dozens of “Don’t do that. You need someone who can take this orgagroups of scientists to confer on a monthly basis, if not binization to the next level,” Woosley said. weekly. Enter Dr. Carolyn Compton. She arrived at her community Up to now, these meetings have revolved around research reception wearing a leopard print jacket and horn-rimmed and development scientists – but not corporate leaders. glasses. As she was introduced, her gastrointestinal medical “This is something I’m aiming to change,” Compton said. specialty was described as “butts and guts.” Compton herself “This is still not the big decision makers – not the CFOs, not mentioned her executive training coach by name in her comthe CEOs. This is something I need to change.” Her plan is ments and said outright “I’m not a drug developer” – pre“to take the activities and the work of these people higher cisely the world in which C-Path is steeped. up in the organization to make sure the decision makers and She is not Ray Woosley. Or those who control the funds unanybody else on the Tucson derstand the full-blown potential mover-and-shaker circuit. of this. My own personal view of You will never be bored in this is the sky’s the limit. We are a conversation with Carolyn only limited by the ingenuity and Compton, who became C-Path’s the way we go with this.” chief executive on Feb. 1. Just ask Compton wasn’t always in the her if she’s just a C-Path caretakcorporate world. Indeed, Comper for a couple years, given her ton is not at all shy in crediting 65 years – though she fully emexecutive coach Lynn Newman bodies the maxim 65 is the new for giving her the tools to succeed 45. in the corporate world. At Comp “My goal in life has never ever ton’s reception, Newman said been to retire,” Compton said. “I about Compton: “I’ve never seen come from a line of women who a personality test like this. lived well beyond 95. I’m a very “She’s a game changer,” Newhigh-energy person.” man said. “She has the ability to Compton indeed is zeroed in engage and connect with people on taking Woosley’s dream child and to see connections across into the next level – but first she dustry and government and make has to make sure C-Path even those connections at warp speed.” makes it to 2014. Compton’s transition from aca The most critical element for demia – first to the National CanC-Path’s next level is a new revcer Institute and now to C-Path enue model. C-Path has largely – is entirely due to Anna Barker, operated on its $20 million startsince fall 2011 director of the up funds from 2005, notably Transformative Healthcare Netincluding $7.5 million raised works at Arizona State University from the Tucson community. and its Complex Adaptive Systems – Anna Barker, Director, That money is largely exhausted, Initiative. Before that, Barker was Transformative Healthcare Networks other funding sources have withdeputy director at the National Arizona State University drawn, and the promise from Cancer Institute and she plucked 2005 that other funding would kick in after five years did not Compton away from McGill University in Montreal. materialize. A few months ago, Barker got to talking to Rick Myers, “If I don’t raise money, C-Path won’t exist in a year,” C-Path’s former COO and a university regent. Barker said he Compton said. “I’m looking for new money from the FDA, should take a look at Compton for C-Path’s new CEO. and I’m revisiting sources from the past. I see this as a critical “She’s the kind of person who really wants to change the period. I need $3 million in a fashion that is unencumbered. world. She has a consuming belief in this mission,” Barker “C-Path has been successful. We’re growing activities. The said. “She’s a pathologist – but she’s also a visionary in the FDA wants us to do more. Industry wants us to do more. We way we need to change medicine.” cannot be laying people off. That would be a downward spiral Myers quickly saw in Compton the same things that attractfrom which we cannot recover. I bet my career on this.” ed Barker’s attention. continued on page 42 >>>

She’s the kind of person who really wants to change the world. She’s a pathologist – but she’s also a visionary in the way we need to change medicine.

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BizPHARMACEUTICAL

If I don’t raise money, C-Path won’t exist in a year. The FDA wants us to do more. Industry wants us to do more. I bet my career on this. – Carolyn

Compton, CEO, Critical Path Institute

continued from page 41

“I really tell you she has such a strong track record at NCI and McGill and all the way back to Harvard,” Myers said. “The great work she has done in trying to advance medical research at NCI makes her a great addition to the C-Path team.” One would not have guessed Compton was accolade bound when she arrived as a freshman at Bryn Mawr University, not because it was a Seven Sister, something Compton was oblivious to, but because Bryn Mawr was her neighborhood university, about 5 miles from the family home. “I come from a blue-collar family, not part of the academic elite,” Compton said. “I didn’t know anything about academia.” Bryn Mawr is a strong feeder school to Harvard, where Compton ended up the first woman among 19 men in Harvard’s then-new combined MD/PhD program designed to train the next generation of scientists to function in the medical and corporate/government world. “It made all the difference in the world,” Compton said. “MDs think PhDs are doctors who couldn’t get into medical school. PhDs think MDs are all dilettantes. To have credibility in both worlds you need both degrees.” (Interesting, founder Woosley also earned both MD and PhD degrees.) The closing decades of the 20th century had Compton at Harvard and Massachusetts General Hospital as director of gastrointestinal pathology. She dropped all that to go to McGill in Montreal as the first “super chief ” as pathologist-in-chief and Strathcona Professor of Pathology. “The biggest factor was I wanted a leadership position. Harvard doesn’t make women department chairs,” Compton said. “I was given a job it would have taken six men at Harvard to do.” The National Cancer Institute created the Office of Biorepositories and Biospecimen Research for Compton. Her focus was how you get material out of a person and store it and access it. She left NCI and McGill for the same reasons – her projects fell victim to political shifts. She has quixotic confidence that will not happen a third time with C-Path. “I’d like to parlay C-Path into an organization that really keeps up with the future as it changes,” Compton said.

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BizBRIEF

Vaughan moves from MTCVB to simpleview By David B. Pittman Rick Vaughan has moved from a high-ranking position at the Metropolitan Tucson Convention and Visitors Bureau to become VP of sales and marketing at simpleview, providing interactive marketing tools and services to destination marketing organizations. “Rick’s proven expertise and vast experience in the tourism industry will be an asset to help simpleview expand into new markets and provide our clients with well-executed growth strategies,” said Ryan George, CEO of simpleview. “Our staff and colleagues will benefit from his knowledge, counsel and leadership.” Vaughan brings more than 34 years of experience in the tourism industry to simpleview. He has held executive positions with global hotel brands such as Westin Hotels and Resorts, Sheraton Hotels and Resorts and Marriott International. Most recently, Vaughan served as senior VP of MTCVB. In this role, he oversaw sales, marketing, advertising, public relations, convention services, creative services and website development campaigns for more than 12 years. Vaughan serves on several national tourism-related boards. He is a certified destination management executive by Destination Marketing Association International and a certified tourism ambassador by the Tourism Ambassador Institute. “I am excited to be joining an organization with such a tradition of excellence and understanding of what destination marketing organizations need today,” said Vaughan. “It is my plan to focus on providing customer service that generates the positive results our tourism-focused clients have come to expect from simpleview.” Founded in 1991, simpleview employs more than 100 people with offices in Arizona, Texas, Minnesota and California who serve more than 200 domestic and international destination marketing organizations.

Biz

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Jennifer Nichols, Olympic Archer Precision Shooting Equipment in Tucson is sponsoring Jennifer Nichols, 28, an Olympic hopeful currently competing in the qualifying rounds for the 2012 London Olympic Games. Nichols’ passion for archery began at age 12, after her father gave her a bow for Christmas. This Wyoming girl began working with Coach Alexander Kirillov in 2001 at PSE’s archery training facility in Tucson. That year, she won her first national championship and became an honorary member of the Junior USA Team in 2002. In 2003 she became a member of the Senior USA Team, where she remains today. Kirillov, who has coached numerous Olympic archers in Tucson, helped Nichols qualify for both the 2004 games in Athens and the 2008 Beijing games. She trained for this year’s games in Tucson earlier this year. Kirillov also trained the Venezuelan archery team at PSE this spring. “It should be good for people to know that we have an Olympic trial training center here,” Kirillov said. “Locals don’t know we have indoor and outdoor ranges – everything to train top archers.”

Taking Aim at Archery By Christy Krueger

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Photo: Courtesy Jennifer Nichols


BizENTREPRENEUR dad credit for building a great team. Most managers have been with the company for more than 20 years. PSE’s local anonymity is partly due to its almost non-existent retail presence, with only a small scratch-and-dent store inside the plant. The Shepleys don’t want to compete with their dealers, which include retail chains such as Dick’s Sporting Goods, Bass Pro Shops and Sportsman’s Warehouse, as well as 1,500 independent retailers. Some PSE bows are made of fiberglass, others of cast aluminum or aircraft-grade machined aluminum, and all components – with the exception of arrows – are made in-house. That means the bow frames, the wheels, bowstring, even the parts to make the parts are produced in the 160,000-squarefoot facility not far from Interstate 10 and Grant Road. PSE’s arrows are produced in China, but Shepley hopes to find a manufacturer in Mexico to bring production closer to home and shorten turn-around time. Social media, such as Facebook, and targeted television advertising are effective in promoting the company’s products. “Our primary focus has been outdoor programs on the Hunting Channel, Versus and the Outdoor Channel,” Shepley said. PSE sponsors professional hunters who appear on these cable networks and professional

competitive archers. Alexander Kirillov, one of the world’s top archery coaches, trains Olympic hopefuls at PSE, bringing additional visibility to the line. The company’s economic contributions have been recognized elsewhere, if not in Tucson. “A couple years ago (Texas governor and former presidential candidate) Rick Perry called my dad and said ‘we want your business to come to Texas; we’re a business-friendly environment.’ My dad thought it was too much work to move and he was too close to retiring. I would have considered it,” said the younger Shepley, who says the business climate here could be improved. Local awareness of PSE will likely grow in the near future, as Shepley has become involved in the new archery range to be built at Naranja Park in Oro Valley. The project is drawing interest from residents on the northwest side, including many from SaddleBrooke. Shepley started a nonprofit archery club and plans to hold competitions and help organize classes at the park. “I want people to have the opportunity to try archery,’’ Shepley said. “Once they try it, they’ll get hooked. You can do it as a family, you don’t have to be a gifted athlete and there are no age or gender restrictions.”

Biz

PHOTO: CARTER ALLEN

Secret gems lie hidden among us. They’re bright lights in their industries but barely create a blip on the radar in their hometown. One such unsung hero of Tucson is Precision Shooting Equipment, the world’s largest privately owned manufacturer of archery equipment. It contributes to the local economy by paying taxes and employing 200 workers, yet many of us are unaware of this quiet neighbor. Pete Shepley started the company in 1970 in Mahomet, Ill. A missile designer for Magnavox Corporation, he had access to military machinery, said son Jonathan Shepley, who took over the company when his father retired last November. “Archery was his hobby. He patented a few archery industry products and quit his job and sold archery equipment out of an RV.” In 1982 the company moved to Tucson. “He loves horses and the environment here,” Shepley said of his father. “And a guy we needed who had experience molding fiberglass – he was here. The employees all moved; we had 28 moving vans.” One reason PSE is a leader in its industry, asserted Shepley, is innovation. “Our engineers are active hobbyists so they’re out in the field and know how to make it better.” Ten percent of the equipment manufactured by PSE is for tournament archery use and the other 90 percent is for hunting. However, archers buy equipment more frequently, so engineering new designs starts on the archery side. Eighty percent of the product line changes every year, according to Shepley, to give customers a reason to continue buying new equipment. A month after the younger Shepley became PSE’s president, the company had its best month ever, and the company is seeing continued growth. “The biggest challenge,” he said, “is creating a workforce going in the same direction – they should be comfortable giving critique and criticism.” To help with that aspect, all employees are engaged in communications workshops. Shepley also says recruiting and retaining employees is difficult, although the number of long-time staff members seems to show otherwise. He gives his

Jonathan Shepley, President Precision Shooting Equipment Summer 2012 > > > BizTucson 45


(clockwise from left)

Matt Grevers

Four-time NCAA Champ 2008 Olympics – • 400 Free Relay – Gold; • 400 Medley Relay – Silver

Lara Jackson

Nine-time NCAA Champ • 2 NCAA Records (200 Free Relay, 50 Free)

Whitney Myers Burnett

• 3 American Records (200 Free Relay, 50 Free, 400 Medley Relay)

Adam Ritter

• 2 U.S. Open Records (200 Free Relay, 50 Free)

Four-time NCAA Champ

Three-time NCAA Champ

Training Ground By Steve Rivera

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PHOTO: CHRIS MOONEY

Olympic


BizSPORTS From George Young and Amanda Beard to Mike Candrea said. “People come here and hope to go onto bigger things and Gayle Hopkins, Tucson and the University of Arizona and that happens a lot. Bernard Lagat is a good example. He’s have had their share of Olympic favorites. been a great ambassador for Tucson.” Who can ever forget the memories Kerri Strug provided Since 2010, Lagat, the Kenyan turned United States citizen, with her leap from the vault with a severely injured ankle to has been all about breaking records. He’s one-upped himself secure gold for the team in 1996? Shivers to be sure at the numerous times since then in preparation for the 5000 meter Atlanta Games. Olympic Games. In his American debut in the indoor 5000m There could be more in store for a host of locals in a variety in Boston, he set an American indoor record of 13:11.50. Four of sports. months later, he broke the 5000m outdoor record in 12:54.12 In the pool, on the track, on the field and some other sur- in Oslo. Just a month later, he broke it again at 12:53.60. Earfaces in between, Tucson has been home to many Olympians lier this year, he also topped himself at the Millrose Games, through the years. The 2012 London Games won’t be any dif- running an American record in the 5000m at 13:07.15. ferent. The count could be numerous. Now, if he can just stay injury-free. Injuries were what did For the 2012 Olympics, there’s even BMX where 20-year- him in in 2008, making Beijing his “biggest disappointment old Corben Sharrah shines. And, yes, of my athletics career.” He’ll do so by tryof course, basketball. ing to win the gold in the 5,000-meter run, And, why not? Hoop dreams are the same event where he was among the synonymous with the Old Pueblo. favorites in at the 2008 Bejing Games only to finish ninth due to an injured Achilles Former UA star Andre Iguodala tendon. hopes to be part of 2012 version of “That injury took a lot from me,” he the Dream Team. Tucsonans and the UA will be wellsaid. represented, making Southern ArizoBut he’s back. The two-time Olympic na a possible haven for hardware – be medalist – silver in Athens in 2004, bronze it gold, silver or bronze. in Australia in 2000 – is more prepared “Tucson is a great place to be – and than ever as he readies for his fourth to train,” said former UA track coach Olympic games in London. He’s looking Dave Murray. “It’s been a great place to become the first athlete representing for swimming and track and field.” the United States in the 5,000 meters since And volleyball, too. Former UA star Bob Schul in 1964. Kim Glass is back to try to win gold, “It will mean a lot to my career,” he after helping Team USA win silver in said. “It would say that I’ve stayed on top Beijing in 2008. (for a long time).” Gold isn’t foreign to UA and TucThis time he really means business. – Bernard Lagat son. Former Arizona swim coach “I need to have more focus than ever Two-time Olympic Medalist Frank Busch has helped lead 34 before,” he said. “In the other Olympics Olympians and 10 medalists. Now I was just happy to be there. I just wanted he’ll do so as Team USA’s director of Swimming. This sum- to do my best. Now, I want to win. And, how am I going to mer more than 50 swimmers with ties to UA, Tucson and the win it? It’s by going all out. It’s my No. 1 priority. This is the Tucson Ford Aquatics team are vying for a spot on Team USA. moment.” As UA coach Eric Hansen said, the talent here is “mind-bog- In part he wants to win a gold medal as a U.S. citizen. He gling.” became a naturalized citizen in 2004. Winning for the USA Even renowned swimmer Ed Moses, 31 and a former world would be “awesome,” he said. record holder, moved to Tucson to be part of the world-class “When I won a medal for the USA at the 2007 World Chamaction. pionships in Osaka, Japan in the 1500m and 5000m it felt so The Olympic Trials are in late June. It’s the official start- good because it felt like I was giving back. It was the moment I ing line for gold medalists at the London Games – at least for had been waiting for. swimmers. “Now, this is the big stage and if I win it, it would mean so “My job is not to do any sightseeing,” Busch said with a much if I were to win the gold medal.” laugh when he took the job last year, leaving Arizona after two Ditto for Abdi Abdirahman, the former UA long-distance decades of excellence. “My job is to make sure everyone has a runner soon-to-be four-time Olympian. Abdirahman will be chance to do the best they can do. Having been a coach on a running the marathon in London after finishing third at the couple of staffs, I have learned some things that are very im- Olympic Trials earlier this year. portant. Most of it will be in the background though.” “I thought maybe one time I’d be an Olympian – but four Murray attributes Busch’s success – “getting the ball rolling” times?” he said. “It’s amazing. I’ve had a great career. I’m just in recent years to make Tucson a hotspot for future Olympians, enjoying the moment.” or at least in making the Old Pueblo a place to train and stay. In previous years, he was the U.S. three-time 10000-meter “The (Arizona) program kind of draws people in,” Murray continued on page 48 >>>

In the other Olympics I was just happy to be there. I just wanted to do my best. Now, I want to win. It’s my No. 1 priority. This is the moment.

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PHOTO: CHRIS MOONEY

Amanda Beard

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PHOTO: COURTESY ARIZONA ATHLETICS MEDIA RELATIONS

Jill Camarena-Williams

continued from page 47 champion. Now, he’ll be going the distance in the 26-mile marathon. “I’m excited and I think it’s going to be fun,” said Abdirahman. “I ran well in the trials with minimal training – so with more training and fitness I think the sky is the limit.” At age 35, he’s in prime condition for the distance. The fourth time the charm? He says he feels good. “I think my chances are as good as anyone else’s,” he said. “That’s why you run the race. I’m training hard. Things are going well.” And if he and Lagat were to win or medal? “It would be amazing,” he said. “It’s why we run.” It’s to win, of course. Or medal. It’s very likely to happen for Arizona volunteer assistant track coach Jill CamarenaWilliams, who recently set a meet record at the Tucson Elite Classic in the shot put competition. Her distance was 64-feet 9-inches. Camarena-Williams, an eight-time indoor champion and three-time indoor champion, is currently the No. 3 ranked shot putter in the world. This will be her second Olympics after qualifying in 2008, finishing 12th. Camarena-Williams is married to UA track and field trainer Dustin Williams. “How many athletes will be able to have that (their husband or wife as their trainer) at the Olympics?” CamarenaWilliams asked. “Maybe one other person, maybe just me. So having him there is going to be a huge advantage.” Said Murray: “If she stays healthy, she could very well win it.” But as she said, there are “no locks for the Olympics.” She knows she must first make the team. Amanda Beard knows the feeling. Then again, she’s been there and done that before. She’ll be attempting to make her fifth Olympic Games. At age 30, anything is possible, especially when it comes to Beard, a former UA star and seven-time Olympic medalist – two gold, four silvers, one bronze. Can she make the team? When Busch took his job with the U.S. Olympic team last year, he didn’t doubt she could. “I don’t usually make any statements about those kinds of athletes or anything like this – but I have never coached anyone quite like Amanda Beard,” he said last year. “First of all, I have never met anyone as competitive as she is. I mean, you’d never know that just standing next to her or if you were her neighbor – but if you put that cap and goggles on her and race her, you would know it. She’s going to make her fifth consecutive Olympic team, which just makes you really think. Yet she’s absolutely a positive influence on everyone she comes in contact with. She has been a super human being with my program from day one.” Matt Grevers wasn’t part of UA’s program but he’s part of the Tucson Ford Aquatics team. The former All-American earned a silver medal in the 100-meter backstroke and won two gold medals as part of Team USA relays in preliminary rounds in Beijing. “Hopefully,” he said, “I can repeat what I did in 2008 and swim fast.” Whatever it takes. And he’ll use every inch of his 6-foot-8 frame, using that sweeping bird-like motion. continued on page 50 >>>


BizSPORTS

PHOTO: CHRIS MOONEY

PHOTO: COURTESY ARIZONA ATHLETICS MEDIA RELATIONS

Brigetta Barrett

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BizSPORTS continued from page 48

PHOTOS: COURTESY ARIZONA ATHLETICS MEDIA RELATIONS

Andre Iguodala

Kim Glass

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“I think it was measured at 7 feet,” he said of his wingspan. “So it helps in swimming. Every stroke grabs a lot of water, so it’s good. I’m a pretty tall swimmer, probably the tallest U.S. swimmer and one of the tallest in the world. My wingspan is bigger than Michael Phelps’ wingspan and my feet are bigger too. But he’s 6-4 and I’m 6-8.” Georganne Rochelle Moline is 5-9 and a wisp of an athlete. Thin but strong. Petite, yet a powerhouse. She’s gone from virtual unknown – out of Phoenix Thunderbird High – to being one of the best in the United States in the 400m hurdles. She’s a junior at UA and qualified for the Olympic Trials by going a personal best 55.25 seconds, beating her own school record. Her potential is unlimited. “My ultimate goal has always been to make it to the Olympics but it wasn’t until this year that I opened my eyes to the reality that I had a chance of not only going to London but actually being a potential threat there,” Moline said. “It amazes me that the athletes I see as icons are now my competitors.” She’ll be ready and determined. It’s brought her to this point so there will be no looking back, no relenting. “The knowledge I have now (with regard) to being an elite athlete is what clicked for me,” she said. “I was set in my ways and stubborn to the fact of changing but I knew I wanted different results. This year, I allowed myself to accept the fact that hard work and talent alone wasn’t going to get me to the Olympics. It’s the want and drive for the sport that’s an ingredient I needed to add to the mix.” UA teammate Brigetta Barrett has the drive and the wherewithal. Perhaps more importantly, Barrett, a worldclass high jumper, has belief in herself. It’s resulted in her being the U.S. indoor champion a year ago and a two-time NCAA champion. Literally, the sky is the limit. “Participating at the international level just solidified in my mind ‘this is where I belong,’” she said. “It was the most competitive environment I had ever experienced in my life, and yet I was not surprised at how I responded to that type of pressure. I feel that I was able to rise to the occasion to the best of my ability and then some. But most importantly, it reminded me why I started to do track and field as an organized sport in the first place. It is the excitement of being pressed to the fire and coming out refined or burnt. I feel that sport truly tests what you are made of as a human being, and being at such a highly competitive environment at times forces you to do things you never thought that you could.” Iguodala has a chance to do something former UA star Richard Jefferson wasn’t able to do – win a gold medal. Jefferson was part of the 2004 Dream Team. It finished third. “It would be incredible, not ever really thinking that I could be there as a kid,” Iguodala said when he was first named to roster of possibly making the team. “I remember Penny (Hardaway) had the Olympic shoe out. I bought that. That was my favorite shoe. Just watching the Dream Team, Dream Team II, and then just following the guys every time the Olympics are on. Just being mentioned in that is crazy.”

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BizLEADERSHIP

Entrepreneurs Lead to Economic Recovery by David B. Pittman Lovallo discussed how to create a customer-first business culture. “You have to have a vision for your employees beyond the nuts and bolts of what they do,” she said. “At Cox Communications we created a vision for our employees around the customer experience. We don’t do internet, phone and video product. What we do as a business is assist our customers in making life’s most important connections. Our employees must believe that what they do, the product they sell, and their dayto-day work activity has a big impact on peoples’ lives.” For the vision to become reality, a company must put its money where its mouth is. “You can’t say we are making life’s most important connections and never upgrade technology. If you are going to have a customer-centered environment, you better make the investments necessary to actually serve customers,” she said. Abrahams said many business owners become isolated and need people to confide in regarding issues of importance within their business. “Often you meet the enemy and it is yourself that is holding you back. Having a conversation on a regular basis with somebody who can share your experience and give you honest feedback is very important to drive success in a company.” Beach said his accounting firm, Bank of Tucson and other organizations are available to help entrepreneurs grow their businesses. “If you need capital, if you need investors, if you need entrepreneurial assistance, we hopefully can connect you to the right place at the right time so you can get the assistance you need to grow your own company.”

Biz Don Diamond

Photo: www.balfourwalker.com

Lisa Lovallo Photo: www.balfourwalker.com

Bruce Beach

promising ventures. “We have enough entrepreneurs and we have enough heavy-duty people working in the universities. We need to work with them, encourage them and invest in them. If we do that, I believe that in the next five years entrepreneurship is going to carry us out of the doldrums we’re in.” The Diamond Ventures chairman said Southern Arizona faces challenges in making an entrepreneurial growth strategy work. “We do have a shortage of capital and we do not have a good political environment, I would admit that,” Diamond said. “But we do have the talent. If we all work together, we can turn the economic tide and build a new future.” Bruce Beach, chairman and CEO of BeachFleischman, moderated the event. “Communities like Boston, Austin and San Diego have shown that the grow-your-own strategy will work. We need to get on the same train,” he said, because “the paybacks are significant.” UA dean Jessup detailed elements that make up an entrepreneur’s DNA – including courage, passion, confidence, optimism, determination, intelligence, persistence, decisiveness, independence and leadership. Entrepreneurs are action-oriented change agents with no fear of failure. Entrepreneurs are all about assuming risk and achieving commercial success. “We have a lot of very clever people all across the University of Arizona,” Jessup said. “They are great at coming up with ideas that have interesting ways to be applied in the marketplace. It is far more difficult to find entrepreneurs. We have thousands of innovators on campus, but only a handful of entrepreneurs.”

PHOTO: CARTER ALLEN

Legendary Tucson developer Donald Diamond said the real estate industry will not lead the state out of its economic troubles. Instead, he predicted home-grown entrepreneurial endeavors will be at the forefront of Arizona’s economic recovery. Diamond spoke at a workshop called “Energize Your Enterprise for Value and Growth.” The invitation-only event in April, underwritten by Bank of Tucson, BeachFleischman and the Jim Click Automotive Group, was attended by about 100 business leaders. This was the first in an anticipated series of gatherings where leaders of growth-oriented businesses share challenges, explore opportunities and build relationships. Other speakers included Len Jessup, dean of University of Arizona Eller College of Management; Lisa Lovallo, VP and systems manager of Cox Communications in Southern Arizona; Marc Sandroff, principal and founder of Cadre Partners; Ken Abrahams, principal in Cadre Partners and former executive VP for Diamond Ventures, and David Cohen, executive VP of BeachFleischman. “This is the fourth recession I’ve been through here in Arizona, the first was in 1962,” said Diamond. “In those past recessions it was growth that dug us out. Real estate was the barometer of that growth. This year is a better year for real estate than any of the last four years have been – but we will not return to the boom years we experienced in real estate in the past, at least not while I’m still around,” said the 84-year-old Diamond. He said home-grown entrepreneurialism will set the pace for the state’s recovery if private business interests are willing to assist and invest in the most

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BizBIOSCIENCE

Ventana Draws 450 Scientists to Global Symposium By David B. Pittman Ventana Medical Systems recently hosted the Tucson Symposium, attended by more than 450 top scientists and physicians from around the globe focused on personalized health care in oncology. Personalized health care – which fits the right treatments to patients based on an individual’s particular genetic makeup – is critical because expanding knowledge of disease mechanisms and individual genetic variation is enabling doctors to provide more precise diagnoses and targeted treatment options to all patients, particularly those with cancer. The three-day Tucson Symposium, held at Westward Look Wyndham Grand Resort & Spa, not only brought key scientists and doctors together for an insightful exchange of ideas around

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the latest developments in pathology and oncology, but also spotlighted the Southern Arizona region as a strong research hub for bioscience technology. For Ventana, whose mission is to improve the lives of all patients afflicted with cancer, hosting the symposium underscored the company’s commitment to establishing new standards for patient care. Ventana President Mara G. Aspinall said personalized health care is ushering in a new era in medicine. “In recent years, incredible advancements have been made in science that highlight the tremendous importance of treating individual patients according to their unique genetic makeup,” she said. “Ventana enables this through our sophisticated diagnostic instru-

ments and tests that analyze human tissue to help identify those patients most likely to respond to a specific treatment as well as those patients for whom a treatment may be ineffective or even dangerous.” As a global leader in tissue-based cancer diagnostics, Ventana, a member of the Roche Group, has been on the leading edge of the personalized health care revolution. “By hosting (the) Tucson Symposium, we bring together the brightest minds in cancer today – this leads to knowledge sharing, future collaboration and new research that will seed the market for further innovation and most, most importantly, save patient lives,” Aspinall said. Aspinall said increasing personalized

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health care lies with patients. “The patient is the core of everything we do,” she said. “As personalized health care continues to advance, patients will need to become better educated about the specific cancer they are fighting, making them better equipped to work with their physician on their personalized treatment plan.” Other topics discussed at the symposium included the latest developments in biomarkers, cervical cancer diagnosis and treatment, gastrointestinal cancer treatment, innovations in cancer research, and medicine that will change patient care. In other news, Aspinall was presented with a framed copy of an entry in the Congressional Record which praised the work done by Ventana. The presen-

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tation was made in April at Ventana’s Oro Valley campus by members of the staff of former U.S. Rep. Gabrielle Giffords. The comments in the Congressional Record were made by U.S. Rep. Bruce Braley from Iowa, on behalf of Giffords. Braley stated that Ventana Medi-

cal Systems was “a leading global provider” of “patient-focused, tissue-based cancer diagnosis.” He said Ventana exemplified the mission of every medical laboratory to “deliver the right patient results in a timely manner.”

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BizBRIEFS

Overton Named Senior Commercial Banker at Mutual of Omaha Tim Overton has joined Mutual of Omaha Bank as a senior commercial relationship manager in Tucson. Overton, who has nearly 20 years of commercial banking experience, will work with area businesses, offering a full suite of business banking services, including deposit accounts, treasury services, merchant services, business loans and commercial real estate financing. He earned his bachelor’s degree in economics from the University of California, Riverside. Overton currently serves on the board of the YMCA Foundation of Southern Arizona and is a member of the Tucson Fiesta Bowl Committee, the Tucson Airport Authority and the Financial Executives and Associates of Tucson. With more than $5 billion in assets, Mutual of Omaha Bank is one of the fastest growing banks in the nation. It is a subsidiary of Mutual of Omaha, in business since 1909. Biz

McCaleb Construction Named Regional Contractor of the Year

It’s been a big couple of years for awards for McCaleb Construction. The Tucson company was named the 2012 regional recipient of a Contractor of the Year award from the National Association of Remodeling Industry for Best Kitchen in the South Central Region, which includes Arizona, Arkansas, Texas, Oklahoma, New Mexico, Mississippi, Louisiana and Nevada. It also received the 2012 Better Business Bureau of Southern Arizona’s Torch Award for Ethics, which recognizes trustworthy and honorable business practices. McCaleb was named the 2011 Remodeler of the Year at the annual Southern Arizona Home Builders Association Celebration of Excellence. This is the fourth time since 2002 that the firm has received the award. Additionally, McCaleb received Professional Remodeler Magazine’s Chrysalis Award for Remodeling Excellence for a Residential Exterior, presented in December 2011. McCaleb Construction and owner John McCaleb have been designing and remodeling Tucson homes for more than 30 years. In 1997, McCaleb was featured on PBS’s “This Old House” program. Biz

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www.BizTucson.com


Photos: Courtesy of Long Realty Company

BizHONOR

Winning contest entry (left) by Bryan Salzman, along with entries from two other finalists.

Long on Innovation Local Realty Company Earns Global Award By Monica Surfaro Spigelman Innovations abound in every corner of the real estate market – yet Long Realty Company proved it was a cut above the rest when it netted a prestigious honor from Leading Real Estate Companies of the World, the largest global network of premier locally branded real estate firms. For its “Why I Love Arizona” website launched last fall, Long Realty was designated the Most Innovative Brokerage at LeadingRE’s 2012 Annual Conference held in Orlando, Fla. It was a case of the right program at the right time – as Long Realty’s online campaign engaged community creativity while generating positive energy about Arizona. Long Realty created a photo contest that invited the community to submit photos that portrayed the spirit of “Why I Love Arizona.” Winners were selected based on online voting. The grand prize – $1,926 – was an amount representing the year Long Realty was founded. Long Realty employees and sales associates also were encouraged to submit their own Arizona photos for a special online gallery. “Our goal was to bring the community together through photos – for everyone to show our Arizona pride,” said www.BizTucson.com

Rosey Koberlein, CEO of Long Companies. Long Companies comprises Long Realty Company, Long Mortgage Company, Long Title Agency and Long Insurance Group. The photo contest generated hundreds of submissions. Tens of thousands of votes were cast from across Arizona. “We wanted to get people talking and sharing the positive, and it worked,” Koberlein continued. “The contest turned attention on Arizona’s natural wonders and inspired community spirit and loyalty.” Long Realty partnered with KVOATV, Clear Channel Radio, Arizona Daily Star, Tucson Lifestyle, Truly Nolen, Comcast and Dental Village to promote the contest and encourage participation. With collaboration at the heart of the initiative, the community got creative, generating votes as well as conversations about the contest in social media. The “Why I Love Arizona” grand prize award winner – Tucson’s Bryan Salzman – and finalists were announced in December. The gallery of winning photos remains online at www. whyilovearizona.com. Long Realty has made significant investments in people, technology and

systems to provide an exceptional experience to consumers and to sales associates, according to Kevin Kaplan, VP of marketing and technology for Long Companies. “The ‘Why I Love Arizona’ campaign is one in a long line of innovative ideas Long Realty has brought to life,” he said. Long Realty was the buzz of the industry at the recent LeadingRE conference at the Hilton Orlando Bonnet Creek, which attracted 1,000 real estate brokers, managers, relocation professionals, sponsors and guests from across the U.S. and over a dozen countries worldwide. “Long Realty created an amazing community outreach campaign,” said LeadingRE President and CEO Pam O’Connor. “As the recipient of our Most Innovative Brokerage Award, Long Realty has earned distinction as one of the country’s top-performing real estate companies.” Only the best among locally and regionally branded firms are selected for membership in the LeadingRE network. Long Realty is the local representative in this network producing $235 billion in annual home sales.

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BizAWARDS

UA Celebrates Innovation By Brad Poole

The University of Arizona sets aside a day to celebrate innovation and honor folks from academia whose research is leading the world into the 21st century. Among those honored this year were Dr. Ronald S. Weinstein, a pathologist whose work has influenced global telepathology for decades – and doctoral candidate Amanda Armstrong, whose chicken vaccine could protect millions from Campylobacter, the second most common cause of foodborne illness in the world. The two received Technology Innovation Awards at the ninth annual Innovation Day on March 6, which included a panel discussion, presentations from other campus innovators and the awards ceremony that also recognized five Leading Edge Researchers. Ronald S. Weinstein

Siemans and Philips – have invested more than $200 million in the field. Tucson’s Sunquest and Ventana Medical Systems have driven the business in Southern Arizona, along with contributions from the IBM’s mass-storage researchers, Weinstein said. Weinstein also founded the Arizona Telemedicine Program in 1996, which he still heads. Today technology puts telemedicine directly into the palms of physicians. Recently a doctor in Sells connected to the program via a smart phone to diagnose a man’s neck fracture.

Amanda Armstrong

When Amanda Armstrong came to UA to study veterinary science, she had no clue it would lead her to a vaccine for chickens that could protect millions. But her work indeed led her there, and now the final-year doctoral candidate is planning a company that will produce the vaccine to control Campylobacter, which is normal in chickens but causes illness in people who eat the birds. She plans to dedicate her life to food safety. “I think food safety is the most important feature of a developed nation,” she said.

Photos: BalfourWalker.com

Weinstein got his start in telepathology in the 1980s, when pathologists viewed slides via video from remote microscopes. Today slides are recorded in high-definition digital images, then sent to the doctors for viewing. The newer paradigm, which Weinstein pioneered, has become the method of choice in telepathology. “It has evolved with the ability to store very large digital files,” Weinstein said. Telepathology is still advancing. In just the past three years, numerous companies – including GE, Roche,

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Amanda Armstrong


Leading Edge Researchers

Weinstein and Armstrong are far from the only innovators at UA. Innovation Day is really about recognizing the breadth of innovation across the campus – from digital art techniques used in Hollywood to water policy in arid lands, said Leslie Tolbert, UA’s senior VP for research. “These are the crème de la crème – but there’s more crème there,” Tolbert said. “If we had 50 awards to give out, we’d find 50 amazing people.” Innovation Day recognized five Leading Edge Researchers for their innovations in diverse areas of study: • Eric A Betterton heads the UA Atmospheric Sciences Department and the Institute of Atmospheric Sciences. He is developing software models to forecast the effects of blowing dust – a surprisingly dangerous and common problem in Arizona. His work could help protect millions from the windborne contaminants from mines or other man-made sources, as well as help authorities plan for health advisories or road warnings. • Leslie Gunatilaka is a UA professor of Natural Resources and the Environment and director of the Natural Products Center. He strives to connect academics across the nation with businesses to develop pharmaceuticals or other useful compounds from desert plants. • Larry Head is an associate professor and head of the UA Systems and Industrial Engineering Department. His algorithms led to research that could allow traffic control systems to simultaneously adapt to input from emergency vehicles, public transit, commercial and personal vehicles and pedestrians. Head’s research could lead to safer streets for everyone. • Sharon B. Megdal is the director of the UA Water Resources Research Center, a distinguished outreach professor and the C.W. and Modene Neely Endowed Professor for Excellence in Agriculture and Life Science. Her comparative analysis of water policy is widely recognized. She strives to develop new water policy nuances that recognize the demand of all stakeholders – including the environment – on water supplies. • James T. Schwiegerling is a UA professor of ophthalmology and vision sciences. He is developing artificial lenses that can adapt to eye muscle contraction, much like natural lenses, to allow people to focus near and far after cataract surgery. The UA also recognized the accomplishments of the late Regents’ Professor Michael J. Drake, who joined the UA planetary sciences faculty in 1973 and headed the Lunar and Planetary Laboratory and Planetary Sciences Department since 1994. He was the guiding force in the Phoenix Mars Mission and the pending OSIRIS-Rex mission.

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Getting Down to Business Len Jessup, Dean of Eller College, University of Arizona 60 BizTucson

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PHOTO: CARTER ALLEN

By Teya Vitu

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BizEDUCATION

We can’t be a great business school unless this is a great university. We know we need to help. –

Len Jessup, Dean of Eller College, University of Arizona

Keep an eye on the Eller College of Management. The University of Arizona already has one of the best business schools in the country – but don’t think it is business as usual under the leadership of Len Jessup, who just finished his first year as Eller’s dean. “Part of the conversation of my coming here was how do we continue to grow the college and continue getting better? How do we do that without state funding?” said Jessup, who became dean in May 2011. Eller is ranked the No. 14 public business school in the nation, according to U.S. News & World Report and No. 24 if you mix in the private universities. Eller’s management information system program is No. 1, entrepreneurship is No.3 and management is No. 9. Jessup wants to see all of Eller’s programs and the college itself in the Top 10. What does it take to make a No. 14 business school a Top 10 business school in Jessup’s mind? For one, wean Eller off state funding as much as possible. Eller already is 75 percent selfsustaining. “The Top 10 public business schools are in the single digits,” he said, with less than 10 percent public funding. Jessup also wants Eller to take a lead in helping the entire university become more self-sustaining. “We can’t be a great business school unless this is a great university. We know we need to help.” He returned to UA as dean 23 years after earning his doctorate in MIS and organizational behavior at Eller College. Jessup wants to double the enrollment of the much-vaunted McGuire Entrepreneurship Program, which has capacity for only 100 budding entrepreneurs at any one time. www.BizTucson.com

That’s where a new building comes in. Eller is just finishing the pre-design phase for a new 100,000-square-foot building across the street from Eller’s 250,000-square-foot McClelland Hall. Jessup estimates a cost of $35 million to $50 million. Serious fundraising starts now. He envisions having this new home for the entrepreneurship, MBA and executive education programs ready in the next two or three years. “The big home run for us is to build a new building next door and push the entrepreneurship and the MBA programs out (of McClelland Hall) so they can grow.” Eller already has close relationships with the colleges of science and engineering. And Jessup’s own research focuses on commercializing university research, that is, technology transfer. His research, in collaboration with Monte Shaffer and Robert Lusch, is on predicting the potential success of technology patents. This would help determine the viability of an innovation early on in the patent filing process. Jessup is not the first to notice that UA is a Top 20 research institution bringing in more than $600 million in federal research grants, while generating only $981,000 in licensing revenue in 2011 from companies that were spun off from UA research. Top 20 universities with revenue from licensing research on average bring in more than $17 million a year. “Our spin-off level is not where it should be,” said Jessup, adding that UA should fall anywhere between University of California, Berkeley’s $6.8 million and University of Utah’s $38 million. Right now, Jessup has faculty looking around the country for ideas to add a new element to the MBA program to write business plans around university

intellectual property. The course will launch this fall. In his first year Jessup has traveled widely, visiting prominent business schools and technology transfer offices. One trip involved three universities that he says “fire on all pistons” in regards to self-sufficiency, spin-off companies and licensing revenue – University of California, San Diego, University of Colorado and University of Texas. “I came back from those really charged,” said Jessup, who spent 11 years at Washington State University before coming to Tucson. “We have better pre-conditions than those communities have. We could be Austin times 10.” Jessup grew up in the San Francisco Bay Area, descending from Italian immigrants on both his mother’s and father’s side. He received his bachelor’s and master’s degrees at California State University, Chico. He originally cane to Tucson in 1985 to study for his doctorate at Eller. “The experience here was not only pivotal for me, but I fell in love with Tucson,” Jessup said. “I went back to California (in 1989), but I knew I would come back.” Jessup spent the early part of his career in the 1990s at the Kelley School of Business at Indiana University. Jessup rose in stature during his 11 years at fellow Pac-12 school Washington State University from 2000 to 2011, first as head of its MIS Department. He rose to dean of the College of Business, then VP of university development, then president of the Washington State University Foundation, where Jessup doubled the foundation’s fundraising totals and achieved a record number of donors.

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BizMEDICINE

TMC Surgical Tower Centered on Orthopedic Care By Ethan Orr This year the low profile of Tucson Medical Center is set to change – with the addition of a $109 million, fourstory, 200,000-square-foot surgical and orthopedic tower. For nearly 70 years, TMC’s been recognized for its historic roots, generous nature – and flat single-story campus. Not anymore. Judy Rich, president & CEO of the TMC sees the new surgical tower project as far more than just a building. “This will move our hospital into the next generation.” With 24 operating rooms, 40 private patient rooms and an entire floor dedi-

cated to orthopedic surgery, the new facility clearly moves TMC – already one of the 300 largest hospitals in the United States – into a nationally recognized level of service and stature. Richard Prevallet, VP of facilities and construction at TMC said, “This project will move us to an elite level – comparable to Johns Hopkins in Baltimore or the Ronald Reagan UCLA Medical Center.” Nationally, orthopedic surgery – which deals with skeletal and muscular trauma – is a growing field with more than 132 million patient visits last year. This trend is driven by an increase in

sport injuries, office injuries such as carpel tunnel syndrome and the overall aging of our population. The American Academy of Orthopedic Surgeons estimates that one out of every four Americans has a musculoskeletal impairment. TMC’s Orthopedic Center is operated jointly with the Tucson Orthopaedic Institute, one of the largest full-service orthopedic practices in the Southwest. “TMC is one of the most progressive hospitals in the community,” said Greg Waters, CEO of TOI. He previously told Biz Tucson, “In asking ourselves if we could build the best world-class center for orthopedics, what would that

Radioactive Beads Provide Hope for Cancer Patients By Ethan Orr Colorectal cancer, which develops in the large intestine, is one of the most common and lethal caancers in the United States. Once it has spread to the liver, it is notoriously difficult to treat. Now Tucson Medical Center is introducing a promising FDA approved treatment option for patients with colorectal cancer that spreads to the liver. Selective Internal Radiation Therapy, known as SIRT, using SIR-Spheres microspheres, is a novel treatment that directly targets liver tumors. It is a new form of treatment that surrounds a tumor with millions of microscopic highly radioactive beads. Each bead is less than a third of the width of a human hair. The micro62 BizTucson

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spheres deliver beta radiation directly to the tumor. This localized effective solution “is the newest non-invasive treatment for cancer that is showing a lot of promise,” said Dr. Julie Zaetta, a board-certified radiologist with Radiology Ltd. who has worked to bring the program to TMC. Zaetta also has a subspecialty in vascular/interventional radiology. The 90-minute treatment is performed on an outpatient basis and the beads become inert after two weeks. This is the only fully FDA-approved microspheres therapy available to these patients. The treatment “improves patient prognosis and it extends life,” Zaetta said.

This is not a cure but a great next step. When combined with chemotherapy it can extend life expectancy and dramatically increase survival rates, she said. This is a tool “to help patients manage the disease or provide longer diseasefree intervals.” Colorectal cancer spreads to the liver in as many as 60 percent of cases. The SIR-Spheres microspheres deliver a dose of radiation up to 40 times higher than conventional radiotherapy – while sparing healthy tissue, Zaetta said. This new treatment is suitable only for patients with liver tumors and has no effect on tumors outside the liver.

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This project will move us to an elite level – comparable to Johns Hopkins in Baltimore or the Ronald Reagan UCLA Medical Center. –

Richard Prevallet, VP of facilities and construction at TMC look like? I think we found it.” This is designed to be a world-class specialty center that will “focus us squarely on the future by putting the best medical quality and state-of-the-art resources at the patient level,” according to Louise Francesconi, chair of the TMC board of trustees. The surgical tower will increase the total number of in-patient rooms for orthopedic patients from 30 to 40. Community leaders also see the value and impact of this expansion. Tucson Mayor Jonathan Rothschild said, “TMC’s new orthopedic and surgical tower will add to Tucson’s health care cluster. It will serve area residents – but also add to our ability as a community to attract patients seeking top-notch health care, both nationally and internationally.” He added it also “builds Tucson’s reputation as a Science City.” Pima County Supervisor Ray Carroll sees the value to both the patient and the community. “Having one of the best orthopedic centers in the nation will improve our quality of life and help us attract business. Overall, this will positively impact our economy, create jobs and will improve medical service in Pima County. ” Currently, more than 100 construction workers are on site. This is projected to increase to more than 200 this year, adding over $10 million in direct wages to the Tucson economy in 2012. Judy Rich also acknowledged that previous leading-edge projects, such as the conversion to electronic medical records, have been an enabler for this facility. “Had we not laid the groundwork with electronic medical records, this facility could not function as effectively as it will.” She also noted that with the addition of a new 600-car parking garage and moving surgery into a single building, transportation becomes a lot easier. The old operating rooms will be converted into a gym and workout center – much to the delight of the hospital staff. The surgical tower is set to be completed in Spring 2013 – much to the delight of the entire community. Biz www.BizTucson.com

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BizHEALTH Dr. Jessica Schultz Pediatrician & Founder Grow 2B Fit

Growing Strong

Program Inspires Kids to Make Healthy Choices

PHOTO: CHRIS MOONEY

By Romi Carrell Wittman

When Dr. Jessica Schultz began referring 12-year old children to the cardiologist for elevated cholesterol levels, she knew she had to do something. “I was so frustrated seeing so many overweight children, kids that were morbidly obese,” said the Tucson pediatrician. “I knew we had to help them. We had to do more than what we could offer in a 10-minute office visit.”

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While there were some kid-focused nutrition and exercise programs available, working families often couldn’t attend them because of scheduling issues. That’s how Grow 2B Fit was born. “It started as a kids’ camp – a free monthly class for families, with a portion on nutrition and a portion on exercise,” Schultz said of the program, which began in the fall of 2009. At the camps, families learn how to

make better food choices and how to incorporate exercise into their dayto-day lives. The idea is to make the exercises simple enough for people to do at home, with little to no special equipment needed. The camp also provides kids with activity books targeted to a variety of age groups. “Kids and parents that come get a pedometer,” Schultz added. “And we offer small prizes for the number of steps.’’ She said the program encour-


There are a lot of resources that parents just don’t know about and we want to make it easy for them to find those resources. – Dr.

ages making good choices by making it fun. The camps eventually evolved into a full-fledged foundation, which received its 501(c)3 nonprofit status in 2010. Initial funding for the organization came from the community, including Tucson Medical Center. A grant from the American Academy of Pediatrics supported the formation of the Grow 2B Fit Childhood Obesity Coalition. Grow 2B Fit still offers monthly Kidz Camps at Apollo Middle School, but now also boasts a robust, family-friendly website at www.grow2bfit.org. The site provides links to a multitude of websites offering recipes, activities and tips for incorporating healthy habits into dayto-day life. The organization is in the process

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Jessica Schultz, Pediatrician and Founder, Grow 2B Fit of developing a Fit Buddy program, a mentorship program matching volunteers with children to provide one-onone teaching and support. Grow 2B Fit is working to get the home economics kitchen at Apollo renovated so that it can be used to teach healthy cooking. “The kitchen is the same one that was built when the school was constructed. It’s about 40 years old and the school hasn’t been able to use it for the past 10 years,” Schultz said. Once the kitchen is remodeled, it will be used not only for home economics classes, but also to offer hands-on healthy cooking demonstrations at the monthly Kidz Camps. Schultz said that as a nonprofit organization operating on a shoestring budget, the group is looking for vol-

unteers to help teach nutrition and exercise classes at monthly camps. The organization also needs volunteers to help with support functions. Currently, Schultz and Dr. Shook Yap, also a pediatrician, are the only staff. “We have a lot of plans,” Schultz said. “We are in need of volunteers and welcome any donations, including inkind gifts like small sporting goods.” More important, Schultz said, is getting the word out. “We want to let families know this is out there for them. There are a lot of resources that parents just don’t know about and we want to make it easy for them to find those resources.” For tips on healthy eating and exercise, go to www.grow2bfit.org Biz

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BizBRIEFS Commerce Bank Names Lewis President & CEO By David B. Pittman Commerce Bank of Arizona has named John S. Lewis president and CEO, responsible for managing the bank’s statewide operations. Lewis, an executive with more than 30 years of senior level business banking experience, will work from offices in Scottsdale and Tucson. Prior to joining Commerce Bank, Lewis served as president and CEO of Sunrise Bank of Arizona and chairman and CEO of First Interstate Bank of Arizona. Former Commerce Bank president and CEO Randall J. Yenerich has moved to the position of president and CEO of the bank’s holding company, CBOA Financial. “CBOA Financial is pleased that John Lewis will lead Commerce Bank of Arizona’s continued statewide expansion plans,” said Yenerich. “John has a proven track record of community bank leadership focused on local customer relationships, which is the hallmark of our organization.” Lewis said he is looking forward to leading the bank. “Our team of banking professionals have decades of local banking experience, and our goal is to ensure that our customers experience the benefits of our expertise and communityfocused banking decisions,” he said. Founded in 2002 by Yenerich and a group of local investors, Commerce Bank of Arizona offers business and consumer banking services, including commercial, real estate and mortgage loan products. The bank has offices in Scottsdale, Mesa, Tucson, Green Valley and Tubac, with about $267 million in assets. Biz

Bowles Joins Russ Lyon Sotheby’s International Realty By David B. Pittman

Charlie Bowles, longtime leader in the Southern Arizona real estate and homebuilding industries, is now associate broker manager at the Tucson office of Russ Lyon Sotheby’s International Realty, which specializes in the sale of fine homes and real estate throughout Arizona. Bowles previously was VP of marketing and sales for Diamond Ventures, where he worked for 13 years. From 1988 to 1999, he was VP of marketing and sales at Estes Homebuilding Co. Bowles also has been president and broker for Cottonwood Homes at Cottonwood Properties and co-owner and vice president of Crain and Associates Management Co., where he managed and marketed 11 Arizona apartment communities. Gov. Jan Brewer appointed Bowles to the Arizona Real Estate Advisory Board, where he serves as chairman. He was 2011 chairman of the Southern Arizona Home Builders Association Board of Trustees. From 2007 to 2011, he was chairman of the board of Tu Nidito, a nonprofit agency dedicated to providing care to children who have experienced the death of a parent, sibling or other loved one.

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SPECIAL REPORT 2012

THE REGION’S BUSINESS MAGAZINE

Tucson’s Tourism Bureau

Sporting

New Strategies


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ture, cuisine, sporting & cultural events. These remain the focus of the game plan. This year’s update also includes news of geotourism, the Mexico market, the region’s resorts, spas and other gems. After reading this report, I think you’ll agree that this is a “wow” destination – and a very real economic jewel for this region. This summer I urge you to “play tourist” at our resorts, attractions, airport, restaurants and arts events. They deserve our support. And think Tucson whenever you have the chance to book a conference, family reunion or client outing. photo by: Steven Meckler

This is an exciting time for tourism as travelers are enticed here by The Real Southwest – a marketing campaign launched by the Metropolitan Tucson Convention & Visitors Bureau. This is also the start of a new era – under the leadership of Brent DeRaad, the bureau’s new president and CEO. DeRaad completed his successful tenure at the Scottsdale CVB to join the Tucson bureau this spring. His passion for our region is already evident. He has great plans for this destination. To address the economic adversity of the past few years, the MTCVB developed new strategies to diversify their economic development “toolkit,” including innovative collaborations. We’re a college sports town – so the MTCVB became a corporate partner of Arizona Athletics to help draw sports tourists. Enter visionary Athletic Director Greg Byrne and think Hi Corbett Field – where baseball is back – and so are the fans. Tucson’s also a film town. The first studios date to 1914. With the loss of film incentives, local promoters shifted their focus and now we’re getting independent films, like “Goats” with David Duchovny and Vera Farmiga, plus lucrative TV commercials and reality shows. This special report focuses on tourism, an economic driver that has a $2 billion impact on the region, or $2.5 billion for all of Southern Arizona. A Pima County audit showed that every tourism dollar invested in 2009 had a 30-to-1 return. That’s why it is so important to invest in tourism marketing. Remember that Colorado cut tourism expenditures in 2003, thinking that visitors would continue to come. Tourism plummeted and the state has yet to fully recover. Last year we reported the MTCVB’s focus on seven key economic drivers of Tucson tourism – spas & resorts, outdoor adventure & eco-tourism, golf, arts & attractions, history & cul-

Steven E. Rosenberg Publisher & Owner BizTucson

Subscription & Advertising Information: BizTucson, 4729 East Sunrise Drive, #505 Tucson, AZ 85718 520.299.1005 www.BizTucson.com steve@BizTucson.com BizTucson is published quarterly by Rosenberg Media, LLC. © 2012 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. Special Report cover photo by Jamie Williams, That Girl Productions

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BizTOURISM

Local Tourism $2 Billion Economic Impact By Romi Carrell Wittman

MTCVB Generated $170 Million in 2009

A performance audit of the MTCVB conducted by Pima County in 2011 reported that the bureau was responsible for generating $170 million in 2009 – a 30-to-1 return on every dollar invested. Over the past several years, well-targeted marketing by the bureau is making an impact – including group sales, sports,

Winter 2012 cold-weather transit marketing in Denver

Mexico and film. Allison Cooper, director of marketing, shared these statistics: • Last year, travel by MTCVB clients for conventions, meetings and group tours accounted for more than 387,750 occupied hotel and resort rooms in the greater Tucson area. That translates to an estimated overall economic impact of nearly $157 million. (Group travel represents about 30 percent of hotel bookings, with the balance from leisure travelers.) • Since 2005, the bureau’s Tucson Sports division has generated 231,000 room nights for an estimated impact of $147 million. • The only bureau in Arizona with two offices in Mexico, the MTCVB saw a 24 percent increase in the number of hotel room nights they booked last year from Mexico visitors – an impact of nearly $553,000 in revenue for midtown and downtown hotels. • The bureau’s film office generated an estimated economic impact of $6 million last fiscal year. Recruiting a single commercial to film here in Southern Arizona can generate $500,000 or more for the local economy – in less than two days.

Ongoing aggressive marketing and a highly targeted branding campaign – The Real Southwest – are paying off, Cooper said. Why Tourism Matters

All told, in 2010 the tourism industry in Tucson and Pima County generated 21,520 jobs, $124 million in direct tax receipts and an overall economic impact of more than $2 billion, according to the Arizona Office of Tourism. The study by Dean Runyan Associates also showed that of Southern Arizona attractions, Saguaro National Park had the most visitors continued on page 76 >>> Photo: Courtesy MTCVB

Like the first green buds of mesquite trees in the spring, there are signs that Tucson’s economy is rebounding. That includes tourism, which generates an economic impact of more than $2 billion in this region. For the first time since the economy tanked in 2008, local hotel and convention bookings and rates are trending steadily up, as are other indicators that travelers are on the move again. This local re-awakening hasn’t been easy. These glimmers of success come in part from ongoing aggressive marketing and a highly targeted new branding campaign launched by the Metropolitan Tucson Convention & Visitors Bureau in 2011. Oro Valley Mayor Satish Hiremath said the MTCVB has been Tucson’s saving grace during a very difficult time. “They’re saving us in a time when the economy is in turmoil. When jurisdictions are trying to find sources of revenue, the MTCVB is indispensable.” As examples, Hiremath cites the 2012 Duathlon National Championship and the Iron Kids – two athletic events the MTCVB was instrumental in bringing to Oro Valley. Earlier this year, the MTCVB also helped bring a six-day scientific conference to Oro Valley. “That’s 450 scientists,” Hiremath said. “It was an economic impact of $600,000 for Oro Valley.” People oftentimes don’t know or understand what the MTCVB does, he said. ���A lot flies under the radar – but it’s time people make a big deal about it.”

BizFACTS Tourism by the numbers 21,520 tourism-related jobs $124.1 million in direct tax receipts in Tucson and Pima County $2.02 billion total impact to the region, $2.5 billion for all of Southern Arizona Source: Arizona Office of Tourism

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BizTOURISM continued from page 74 – 664,000. Second was Reid Park Zoo with 536,000. Lynn Ericksen, chairman of the MTCVB Board of Directors and GM of the Hilton Tucson El Conquistador, said that money spent to promote Tucson and tourism shouldn’t be thought of as an expense – but rather an investment. “Sometimes you get 30 times what you put into it,” Ericksen said. This year the MTCVB set out to sustain the momentum despite a budget cut of 30 percent – from nearly $10 million in 2008 down to its current $6.2 million. The bureau’s efforts revolve around a new branding campaign designed to sell this region as The Real Southwest. “Tucson has world-class attributes and is truly unique among travel destinations. We have so many things you just can’t get anywhere else,” Cooper said. “The message is one that resonates with travelers on an emotional and personal level. Travelers seek a memorable experience. They find it here – and they come back. “Our mission is to drive economic impact through tourism,” Cooper said. “We’re creating awareness and driving people to the website.” Since launching The Real Southwest campaign last year, she’s seen a 287 percent increase in campaign-specific page views. MTCVB works with the world’s largest custom market research company TNS (formerly Taylor Nelson Sofres) to evaluate consumers’ website usage. TNS research shows that nearly 80 percent of all visits to the visitTucson.org website are new visitors – an indicator that new awareness for Tucson is being created, Cooper said. TNS reported that for every $1 invested in the website, the return in direct travel spending was $4,542. The MTCVB is primarily funded by a bed tax levied on overnight hotel stays by the City of Tucson and Pima County. The MTCVB saw its portion of this tax slashed when the economy soured. Cuts totaled roughly $4 million.

Mission San Xavier del Bac

BizFACTS MTCVB Funding FY 2011-12 $6.2 million 85 percent of the MTCVB budget comes from bed tax on 16,000+ rooms in metro Tucson and Pima County Source: Metropolitan Tucson Convention & Vistors Bureau

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PHOTO: RANDY PRENTICE

New Leadership: Brent DeRaad

Restoring the MTCVB’s budget is one of the first orders of business for Brent DeRaad, the new president and CEO of the MTCVB. DeRaad came to the MTCVB from the Scottsdale Convention & Visitors Bureau, replacing Jonathan Walker, who retired after 18 years with the bureau. DeRaad was selected after an intense six-month nationwide executive search led by the MTCVB board. “Brent just came out of the pack in an absolutely compelling way,” said board chair Ericksen. “He came to the interviews with a full understanding of tourism in Arizona and what it takes the sell the region. He came to us with a background that’s heavy with everything we needed. We really think that Brent is the right guy at the right time.” “It’s a time of change,” Ericksen said. “But we have a very engaged board of directors that has stepped up in a stellar way. I think our CEO has an enormous opportunity to take advantage of the momentum already in place.” DeRaad, who started his new job in April, has hit the ground running. His number one priority is to restore the MTCVB’s budget so that it can compete head-to-head with other markets. “Tucson and Scottsdale were both $10 million organizations in 2007” he said. While the MTCVB’s budget was cut, Scottsdale’s budget now exceeds $11 million. This disparity affects how and where the MTCVB can


They’re saving us in a time when the economy is in turmoil. When jurisdictions are trying to find sources of revenue, the MTCVB is indispensable.

– Satish Hiremath, Mayor, Oro Valley

market – and puts Tucson at a distinct disadvantage to cities with larger marketing and advertising budgets. To put it into greater perspective, the city of Las Vegas has a larger tourism budget than the entire state of Arizona. Funded by Bed Tax

To get the MTCVB budget back where it needs to be, DeRaad hopes to increase the portion of the bed tax that the MTCVB receives. “If we’re able to get all of the entities that we work with to invest 50 percent of the bed tax, that will get us to an $8 to $9 million budget,” he said. DeRaad hopes the other 50 percent of the bed tax would be devoted to tourismrelated improvements and special events. It’s important to remember that the bed-tax is not paid by residents – just travelers, Ericksen said. “We understand it’s been hard on our elected officials and that budget cutbacks were happening in virtually every area. But as the economy recovers, we want to be sure we’re out there competing as we need to.” In addition to restoring the budget, DeRaad also wants to address key issues like air service in and out of Tucson. “There have to be more nonstop flights, more flights to the East Coast and nonstop flights into Mexico,” DeRaad said. “We have to make it easy for people to get here.” The beleaguered Tucson Convention Center is also a priority. It’s a facility that can accommodate large groups – but with no major hotels nearby within walking distance, it’s underutilized. Advantage: Mexico

Tucson has some significant advantages, among them its relationship with and proximity to Mexico. The MTCVB is among the first convention and visitors bureaus in the nation to open visitor centers in Mexico. The first was in Hermosillo. The second opened earlier this year in Ciudad Obregón. “Thanks to the visitor centers and our online reservation system, Tucson has booked more than 33,000 room nights since 2006, generating over $2.7 million in direct revenue primarily for midtown and downtown hotels. Last year alone, we booked 7,000 room nights,” DeRaad said. “We have a unique niche and will continue to market aggressively to Mexico visitors.” The MTCVB is also the first bureau in Arizona with a website dedicated to travelers from Mexico – vamosaTucson.com – principally travelers who spend nearly $1 billion a year here on principally shopping and restaurants. Advantage: Youth and Amateur Sports

Another competitive advantage is youth and amateur sports. “Losing spring training was a blow,” DeRaad conceded.

“But we have great facilities in place. And we are attracting a lot of amateur athletics as well as youth soccer, baseball and club teams. These are recession-resistant types of industries,” he said. Vince Trinidad, Director of Tucson Sports, is determined to bring more youth and collegiate sports to Tucson. He’s already succeeded teaming up with local sport organizers to market and attract more than 100 collegiate softball and baseball spring training teams here, not to mention BMX racing and volleyball. “When these sports come here, each player usually brings two or three people with them,” he said, which translates into more room nights, more meals, more attraction tickets sold. “There is huge growth potential in these areas.” The MTCVB also established a unique partnership with University of Arizona athletics to attract more sports travelers. (See Partnering to Grow Tourism on p. 84.) Advantage: Film

Once the film capital for Western movies and television series, Tucson lost some of its luster as a film location in recent years, in part because it does not offer tax incentives as do several other competing states, including New Mexico. Arizona once had an incentive program. Since it expired the legislature has not passed any of the new versions presented. As a result, the MTCVB Film Office shifted its marketing efforts to projects that are not incentive-driven – such as big TV commercials, reality TV, smaller-budget films and productions that simply cannot find what Tucson has anywhere else. According to Shelli Hall, director of the Tucson Film Office, many up-and-coming filmmakers with low budgets like the advantages of being the bigger fish in a smaller pond. (See Lights, Camera, Action on p. 90.) Films include “Goats,” scheduled for release in August. Commercials include one for Skechers that aired during Super Bowl 2012, plus several car ads. The reality show “The Great Escape” filmed here in May and several episodes of the Food Network’s “Chopped” are airing in June. Reinstating a state film tax incentive would make a big difference by attracting big-budget productions. “That would really open the doors to bring more film-related business to Tucson,” DeRaad said. “It would make us more competitive with New Mexico and other neighboring states.” The bureau also collaborates with the University of Arizona Hanson Film Institute on a variety of projects to showcase local film talent, including faculty who work in the industry, to connect with alumni working in the industry and to hire students for local filming. Tried and True

To attract and book group meetings and conventions, the bureau uses two award-winning strategies that have proved so effective they’ve been copied by other CVBs. The bureau initiated the “You Fly, We Buy” program, bringing meeting planners to Tucson for the real experience. Eight out of 10 planners who avail

Graeme Hughes MTCVB’s Director of Convention Sales

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BizTOURISM continued from page 77 themselves of the program subsequently book meetings here, according to Graeme Hughes, director of convention sales. The sales team also offers an incentive program to qualifying meetings and events that provides a credit for food, beverage and other expenditures at the hotel or resort. Since 2009, this program has booked over 153,000 room nights. Hughes estimates the economic impact to be over $49 million. The bureau’s tourism department markets to leisure travelers, working with tour operators, travel agents, group tour companies and airlines both here and abroad. The partnership development program works closely with the local hospitality industry to expand connections and maximize their tourism opportunities. This includes cooperative advertising to reach qualified consumers. The bureau also has a long-established public relations program that works with domestic and international travel writers to showcase the region. In fiscal 2010-11, the publicity generated was valued at $4.5 million. The Road Ahead

Despite many challenges, Tucson’s tourism future remains bright. Ericksen said Tucson just needs to make sure that it’s

at the table when the economy does rebound to pre-recession levels. “Our industry is producing in excess of $2 billion a year,” Ericksen said. “But it can grow. I believe we are positioned in a unique way to do just that.” Ericksen added a caveat: “We need to restore our historic funding to the MTCVB. “We just have to remember that tourism promotion produces far more in revenue, taxes and jobs than the money we invest to fund the organization that markets the region.” DeRaad and Ericksen agreed that, to get there, Tucson can’t fragment into pieces or small special interest groups. “We can’t go to war with one another,” Ericksen said. “We need to be greater than the sum of our parts. We need to be fiercely competitive with San Diego, with Salt Lake City, with Albuquerque.” These are, after all, the cities that want Tucson’s tourism dollars, jobs and taxes. Ericksen summed it up: “We’ve been through a difficult time. But I see the MTCVB – its staff and its board – rejuvenated. I personally have never been more excited about the opportunity to sell and market this region.”

Biz

The more you fund CVBs, the more revenue acheived. Credit:Smith Travel Research

BizFACTS

Hotel Occupancy Occupancy Percentage 2011 – 60.9 percent 2010 – 59.1 percent Average Daily Rate 2011 – $96.19 2010 – $96.75 Revenue per available room 2011 – $58.54 2010 – $57.16 Source: MTCVB 78 BizTucson

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Leading a New Era

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By Romi Carrell Wittman


By the end of his interview with BizTucson, Brent DeRaad sounded a little raspy. “I’m losing my voice,” he said. “Too many meetings,” he added with a laugh. Despite having been in meetings non-stop from 7:30 in the morning until this 5 o’clock interview, DeRaad was upbeat and excited to talk about his plans as the new president & CEO of the Metropolitan Tucson Convention & Visitors Bureau. DeRaad had been on the job just six days when we spoke. Yet, in that incredibly short amount of time, he’d already met with elected officials as well as community leaders at all levels – no small feat in a town that historically has not been known for collaboration. DeRaad replaces long-time MTCVB President Jonathan Walker, who retired after 18 years at the helm of the bureau. DeRaad, who was selected after a nationwide executive search, is responsible for the overall operation of the MTCVB, its $6.2 million budget and various departments – including marketing and advertising, convention sales, tourism, partnership and visitor services, public relations, sports, Mexico and film. Lynn Ericksen, MTCVB board chair, said of DeRaad: “He is the right guy, in this economic climate, to continue the momentum and maximize the power of the MTCVB.” DeRaad comes to Tucson from just up the road – Scottsdale to be exact. DeRaad’s ties to the Valley of Sun run deep. He earned a bachelor’s degree in journalism and public relations plus a master’s degree in mass communication from Arizona State University. After graduating, he went to work in public relations for the Fiesta Bowl and later the City of Scottsdale as media relations manager. During his tenure, he played an instrumental role in the 1996 Super Bowl, which was held at Sun Devil Stadium in Tempe. “They loaned me to the Super Bowl host committee. I got to work with the NFL and the 3,000 media that came to town,” he said. “It was a lot of fun.” After several years at the City of Scottsdale, he made the jump to the tourism industry, taking a job at the Scottsdale Convention and Visitors Bureau. www.BizTucson.com

In all, he has more than 20 years’ experience in management, marketing, community affairs and public relations – 14 of those in the tourism industry. He was most recently the executive VP of the Scottsdale Convention & Visitors Bureau. His previous roles there included VP of marketing and VP of corporate communications. DeRaad also led the 2010 campaign for Proposition 200, in which Scottsdale voters approved a two percent increase in the local bed tax. Half of Scottsdale’s bed tax is allocated to the Scottsdale CVB. DeRaad hopes to have a similar impact in Tucson. He intends to use his high-octane energy and laser-sharp fo-

He is the right guy, in this economic climate, to continue the momentum and maximize the power of the MTCVB.

– Lynn Ericksen Board Chair, MTCVB

cus to shape the MTCVB’s future. It’s a challenge he said he’s looking forward to. “We’re selling the Real Southwest,” he said. “We have spectacular attractions here. We have world-class resorts, spas, golf and dining. That’s what attracted me to Tucson.” In the short term, DeRaad hopes to increase the MTCVB’s investment in advertising, sales and marketing. In the longer term, his goal is to make the MTCVB a viable part of the economic development landscape of Southern Arizona. To that end, he hopes to pinpoint the areas that can be improved upon and made better. “What is it that we can help build – or bring in – that would benefit tourism

and would also be good for Tucson?” he asked. “If something is good for tourism, it’s most likely good for the community, too. It adds value.” DeRaad faces some pretty significant challenges. One is addressing Tucson’s inability to host large convention groups. Another, more immediate concern is increasing MTCVB’s budget, which DeRaad hopes to do through a reallocation of Tucson bed tax, levied on all hotel rooms in the city. DeRaad believes that informing people about Tucson and Pima County, just letting them know how great it is here, is critical. Tucson – and the entire state of Arizona – has suffered from bad publicity, with everything from the passage of the controversial SB1070 to the events of Jan. 8 affecting people’s perceptions of the area. DeRaad doesn’t see this as the real problem, however. “Tucson doesn’t have an image problem so much as it has a funding problem,” DeRaad explained. “We have to reach out to potential visitors to show them what they can experience in Tucson. We have to continuously improve. And those things take money.” DeRaad sees collaboration as critical to both the MTCVB’s and the entire region’s long-term success. “I see the MTCVB serving a role in overall economic development. It’s not just about tourism. Regional partnerships are crucial.” DeRaad intends to strengthen the MTCVB’s ties with Tucson Metro Chamber. He also wants to work even closer with neighboring communities like Oro Valley plus organizations like the Tucson Airport Authority. “We’re stronger as a region if we work together,” he said. DeRaad also hopes to build on the MTCVB’s key strengths – Mexico, amateur and youth sports and film tourism – areas that continue to grow even in this tough economy. DeRaad knows the MTCVB has its share of challenges, yet he is optimistic about the future because he believes Tucson is truly unique, a gem of the Old West. He said he’s glad he made the decision to come to Tucson. “Tucson has so much to offer. It has such tremendous attributes,” he said.

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BizTOURISM

Allison Cooper

Director of Marketing Metropolitan Tucson Convention & Visitors Bureau Photographed at Catalina State Park in Oro Valley

Getting ‘Real’ By Romi Carrell Wittman In August, Allison Cooper will celebrate her second anniversary as Director of Marketing at the Metropolitan Tucson Convention & Visitors Bureau. Given the tremendous success of The Real Southwest marketing campaign that Cooper’s been spearheading, those two years seem to have gone by in perpetual motion. She’s animated as she speaks about the campaign, and it’s obvious that she loves what she does for a living. “Tucson has so much to offer. Our mission is to make sure people know about it.” And that’s where The Real Southwest comes into play. “We’re creating a brand for the region,” she explained. “And the concept of ‘real’ is what resonates with people. Real is emphasized throughout our seven destination drivers – the most unique attributes that attract travelers to choose Tucson and Southern Arizona over competing destinations.” The idea behind Real Southwest is that Tucson delivers authentic and memorable travel experiences. According to a 2010 marketing survey 82 BizTucson

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by PGAV Destinations, destinations considered to be authentic tend to enjoy better brand perception and higher satisfaction among travelers. In fact, some 80 percent of those surveyed reported they like to visit places that offer a “real” experience. “Some of the best examples we have in selling ‘real’ are in our natural attractions, such as Saguaro National Park,” Cooper said. She points to other natural wonders like Kartchner Caverns, iconic attractions like Mission San Xavier del Bac and locales known in history, like John Dillinger and the Hotel Congress or the O.K. Corral in Tombstone. “People want to experience things you can’t do anywhere else,” Cooper said. That includes events like the gem show and international mariachi conference. The successful implementation of The Real Southwest brand – and getting people to Tucson -- has a huge economic impact on the region. “Our mission is to drive economic impact through tourism,” she said. “When we invest in marketing the region, our lo-

cal economies see a 30-to-1 return on investment.” Cooper’s dynamism and forwardfocus come from years spent working in the intense Washington, D.C. political arena. For 10 years, she developed marketing and outreach campaigns for United States senators – Pennsylvania’s John Heinz and Maine’s Bill Cohen. She later served as deputy director of the Joint Economic Committee of Congress under Connie Mack of Florida. Cooper relocated to Oro Valley in 1997 to be near family. Once here, she began her career in tourism marketing at Madden Media. Eventually she moved to the MTCVB, where she heads up the in-house ad agency and oversees all marketing efforts. With the arrival of Brent DeRaad, the bureau’s president and CEO, Cooper sees the future as a new opportunity to generate even greater demand for Tucson. “Tourism’s nearly $2.6 billion impact is huge,” she said. “It benefits all Southern Arizona.”

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BizTOURISM

Partnering to Grow Tourism Arizona Athletics & MTCVB By Steve Rivera James Francis attended the University of Arizona on a football scholarship in the early 1990s. Now, 20 years later, he’s one of the higher ups in Arizona Athletics, a senior associate athletic director. Tucson and the UA grew on him. He started a family and later his mom and dad moved here. Not that “play and stay” has become a catch phrase, but it isn’t uncommon to see many student-athletes – or students for that matter – come to UA and stay in Tucson. The athletes are just more visible because of the sports that brought them here. From Ricky Hunley to Terry Francona to Matt Muehlebach to Joseph Blair to Amanda Beard, there are more sports alums than you can count who have lived, or are currently living and succeeding, in the Old Pueblo. Ambassadors all, for UA and the city, wherever they go. This community connects with Arizona athletes and coaches, which is one of several factors that led tourism and sports promoters to realize they have a good thing right in their back yard – the university – and to make more of it. That’s why Arizona Athletics and the Metropolitan Tucson Convention & Visitor’s Bureau formed a corporate partnership, now in its second year, to promote sports and tourism. Tucson Is a Sports Town

“We’re excited to be working with the bureau. Any entity that helps in bringing people into our community is a plus,” said Greg Byrne, Arizona’s athletic director who is entering his third year on the job. “They’re getting people to come to this city and university – and hopefully get exposed to a great experience.” That’s the idea. More visitors could mean more events and more money to the community. And as the always-thinkingahead Byrne sees it, many could possibly become season ticket holders, donors and supporters of the program. Besides, where else to showcase events but, well, the UA? All involved said this is a “great partnership” and “fabulous” – so much so, it’s a wonder why it hadn’t been done a long time ago. Still, it’s better late than never as the MTCVB and UA start their second year of the marriage, where both benefit. “Tucson is always asking itself – what kind of town are we?” said Vince Trinidad, director of Tucson Sports, a division of the MTCVB. “In my opinion, Tucson’s always been a college town and a college sports town. Various pro teams have come and gone (over the years) but Arizona Athletics has endured.” That’s why this partnership makes such good sense, he said. 84 BizTucson

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UA Facilities Are Key

“What the UA is doing with the athletic program, including allowing access to their facilities, helps us bring athletes and their families to the area and show them exactly what it’s like to play in a great facility,” said Trinidad. Tucson Sports’ mission is to enhance, develop and secure major events for Tucson, especially lucrative amateur sports. Arizona Athletics and facilities are key to attracting them. “It reinforces our image as a college town and highlights the impact that Arizona Athletics has on the region,” he said. “We’re inspired by ‘Arizona is Wildcat Country,’ ” said Allison Cooper, marketing director of the MTCVB, referring to Byrne’s always-there PR slogan. Inspiration is needed, given the current economic climate, but Cooper thinks there’s a silver lining. “Consumers are reaping the most happiness from their shrinking dollar by spending money for an experience – such as traveling to a unique location like Tucson or purchasing tickets to cheer their favorite sports team to victory. This is more satisfying than buying more stuff. She said research published in the New York Times showed that “spending for vacations, entertainment and sports create lifetime memories and bring people the greatest level of happiness.” Cooper is taking that to the bank. “We really want to help take that message beyond just the borders of Tucson,” said Cooper. “We have an opportunity to drive more visitation and create additional business demand for our hotels, restaurants and downtown. Results have been promising in year one with increased interest and website traffic.” Red and blue may not combine to make green in the color scheme – but it does produce green dollars for the city and the many businesses that the MTCVB promotes. Remember that in Byrne’s mind every inch of planet earth has the potential to be Wildcat country. And who’s to argue with graduates and potential students (even the non-student

Every sporting event offers us a chance to promote the destination while infusing the community with new revenue.

– Vince Trinidad Director of Tucson Sports, a division of the MTCVB

www.BizTucson.com


Capitalizing on PAC-12

With the Pac-12 in its infancy – it just finished its first year of competition – Cooper & Co. also see markets like Utah as huge draws to Tucson. Utah could fall in somewhere behind the top five markets – Phoenix, Los Angeles, Chicago, Denver and Seattle. “We’re going to see extended reach through this partnership,” Cooper said. Arizona and the MTVCB will stretch that reach as far as it can. Of course, everyone would like to see the economic benefit of more visitors to Tucson and UA – especially the impact of Arizona Athletics – because the numbers are downright staggering. Within the last two years, UA alum Kevin Whittier conducted a study with UA football as his guide. In one of the Wildcats’ biggest home games of the 2010 season – a night game vs. Iowa in September – he concluded $8.2 million was spent in “direct visitor spending.” Not factored in – partly because it’s difficult to measure – is the national visibility of the game, broadcast on ESPN, and how it impacts undergraduate applications, increased merchandise sales and exposure, Whittier said. Not to mention ongoing national exposure to potential travelers. Bryne uses this study as an illustration of the impact UA sporting events can have on our economy. He likes what he sees because the future will have many similar games like it. With Oklahoma State on the schedule this year – and the Cowboys are known for having a good traveling fan base – there will be many games like Iowa when it comes to generating big dollars. And, oh yes, victories also help. That September night against the Hawkeyes, UA defeated the ninth-ranked team, 37-34.

PHOTO: CHRIS MOONEY

Photo: BalfourWalker.com

athletes) coming from anywhere and/ or everywhere? This is the man that has more than 10,000 Twitter followers and UA alums from all over the world who send him photos.

Harvey Mason

Former UA Basketball Star & Grammy Award-winning Songwriter and Producer Photographed at Loews Ventana Canyon

James Francis

Senior Associate Athletic Director University of Arizona Photographed at Westin La Paloma

Greg Byrne

Athletic Director University of Arizona

“It’s our mission to impact our economy through tourism in every positive way,” said Cooper. “One way is through sports marketing. We want to give fans of visiting teams an experience that is fantastic and memorable – showing them a wonderful time in our destination.” She wants them to have a wincontinued on page 86 >>>

PHOTO: CHRIS MOONEY

Providing “Fantastic” Experiences

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BizTOURISM continued from page 85 ning travel experience, of course, though she wouldn’t mind if our team won. Victory might be tough to come by as the likes of Ohio State and Nebraska visit – maybe, possibly? – in the next decade. But their fan bases do travel well, so more money would be coming into the community and UA. It all means more eyes – and wallets – in town and on the UA campus. Tucson Sports’ Trinidad pointed out that McKale Center, Arizona Stadium, Hillenbrand Aquatic Center and LaNelle Robson Tennis Center have been hosts to a number of events – such as the 2005 American Youth Football & Cheer National Championships and the 2010 FINA Junior World Diving Championships. The 2008 and 2011 USA Volleyball Camp and High Performance Championships, held at the Tucson Convention Center, brought more than 3,000 athletes and spectators. Tucson Sports either enhances, develops or bids on anywhere from 30 to 35 events a year to come to Tucson. The MTCVB estimates that since the inception of Tucson Sports more than 231,000 room nights have been booked, creating an estimated economic impact of more than $147 million. Jane McCollum, general manager of the Marshall Foundation, just off UA campus, said her organization feels the impact of such events immediately. “Events like USA Diving and USA Volleyball are generally held in the summer when Tucson is less busy,” McCollum said. “We benefit from an influx of young people and their families who find the Main Gate Square to be a family friendly location suitable for young people, but with stores and restaurants adults enjoy. “Whenever we bring groups of potential college attendees, there is indirect recruiting going on and the university can sell itself once they step foot on campus,” McCollum said. “Our community benefits from well-run events that are supported by the MTCVB’s marketing and branding of Tucson.”

Hi Corbett Field

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Hi Corbett Field a Surprising Hit

Arizona’s move from Frank Sancet Stadium to venerable Hi Corbett Field – newly improved and refurbished – was a surprise move and considered a risk by UA and Byrne in the fall – yet one that has been met with overwhelming success because of good baseball, and to be honest, the sale of beer. In making the move, Byrne said he felt there was a “natural affinity” with the community and Hi Corbett, longtime spring training home of the Cleveland Indians, Colorado Rockies and the hometown Tucson Toros. From the first game, which drew nearly 4,000 fans (more than double UA’s average from last season) to the end of the season it’s been a hit. Byrne said exposure of the program and the move has “doubled, maybe tripled” over the last nine months. Arizona leads the Pac-12 in attendance, with just over 2,461 fans per game, which also ranks them in the top 30 among all Division I programs. Over Memorial Day weekend, UA saw back-to-back crowds of 5,000, the highest since 1980. The three-day series with ASU drew 14,055. Last season UA had $69,000 in total ticket revenue. It was $98,000 this weekend alone for the three games against ASU, according to Byrne. “It shows what kind of passion our fans have for our athletes and our athletic department,” Byrne said. “We thought with the history of Hi Corbett our community would come out and support it. And they have. This is exactly what we had hoped for. You analyze the situation and make the best decision you can. We feel very pleased with how things have turned out and want it to go long term.” Then the big surprise. UA was picked to host a NCAA regional starting June 1. UA last hosted a baseball regional in 1992. It last bid on hosting a regional in 2008. Regional tournaments are broadcast on ESPN, meaning more national exposure for the Wildcats, and the Tucson brand. Baseball has been very, very good to Arizona. “Moving to Hi Corbett gives UA the flexibility of taking a facility with a rich history that has hosted high-level events and matching it up with an incredible sports program,” Trinidad said. “Overall, it allows Arizona Athletics to expand their 2010 FINA World Diving Championships

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UA vs ASU

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baseball program potential. And it allows us as a city to say “we’re still a great baseball destination. We know people want to go to Hi Corbett.” What’s occurring is Tucson is being exposed as the “hidden gem” that it is. That’s what the relationship between the MTVCB and the UA is all about – exposing UA sports and great facilities that are available. Real Impact on Visitors

MTVCB wants to highlight all that’s great about this destination – as does Byrne, who emphasizes that UA gets exposed through millions of television sets and several hundred thousand radios with each football and men’s basketball game. Such exposure brings close scrutiny. “What we need to do is make sure we are putting our best foot forward,” Byrne said. “In doing that, it will help ensure our ability to grow, create jobs and have great interest from people.” Of course, winning helps. “The better our teams do on the courts, on the fields and in the pool, the better time slots we’re going to have with our new Pac-12 television network,” Byrne said. According to Trinidad, “every sporting event offers us a chance to promote the destination while infusing the community with new revenue. That’s one of the reasons why this is such a natural partnership. The MTCVB and Arizona Athletics are teaming up for maximum impact.” Thus bringing more visitors to Tucson, putting more fans in the stands and attracting more ambassadors down the road to call Tucson home. A passion for sports brought Harvey Mason to Tucson in 1986 to play four years of UA basketball for Lute Olson. Today the Grammy Award-winning songwriter and producer lives in Los Angeles – but keeps a second home in Tucson. “There’s so much about Tucson I miss,” Mason said, “The people, the athletics, the climate, the scenery, the food and the lifestyle.” That’s real experience.

2008 USA Volleyball Camp

Photos: Courtesy Arizona Athletics

PHOTO: LUKE ADAMS

Biz

The Tucson Sports division of the MTCVB was established in 2005 under the direction of Vince Trinidad. Here are highlights of the department from a recent conversation with him: ➢ “Tucson Sports mainly focuses on four team sports – baseball, softball, soccer and tennis. They tend to bring more out-of-town visitors. We’ve found that sports are recession resistant. While companies during the economic downturn focused on cutting expenses, amateur athletics continued – because sporting organizations still need to crown their annual champions. For this very reason, Tucson Sports was able to make slight increases when traditional markets had sharp declines.” ➢ “Over Martin Luther King weekend there’s a convergence of sports events that fill hotel rooms and have an estimated economic impact of $4.3 million. That weekend is filled with soccer teams from the Fort Lowell Soccer Club’s Shootout Soccer tournament, volleyball teams from Club Cactus Volleyball’s Cactus Classic invitational and high-school-age baseball from another showcase event. This is a shining example of what can be done when you pair up a Tucson signature event like the Shootout with two other significant sporting events to create a super-sports weekend. It’s our goal to create the same magic throughout the year.” ➢ “We work very hard to create lasting partnerships with not only the national sports organizations, but with local groups as well. For example, we filled the TCC arena with 3,500 cubic yards of dirt for a 1,000-rider BMX event – because one of our local sport groups came to us with an innovative event concept. This event brings not only prominence of BMX riding to Tucson – but it delivers 2000 out-of-town visitors to us in August. This event is rare in the BMX world because it’s one of only a handful of BMX national events held indoors. We also created a kid-friendly fun zone for the riders to recreate while they are waiting for their events.” ➢ “These events return to Tucson because we make sure their experience here is so great, thanks to our sports services team. We can’t control how they might compete when we bring an event to town – but we can do everything within our resources to ensure they have a wonderful time while in our town. Our national sport partners constantly tell us that we make their events feel welcome – and their athletes tell them that in their reviews.” ➢ “Tucson does an incredible job hosting sporting events with the sporting facilities we currently have in our area. With the yearover-year success of the amateur sports market, there’s now a need to address sporting venues to carry us into the future. Those sport venues need to be designed to host competition and not be recreational in nature. They also need to either complement the sports we host well, or expand our sport hosting ability. Any endeavor needs to take into consideration our local sport organizers, needs to expand their current capabilities and aim to make this region a premier sporting destination. It’s imperative that these discussions take place now so that we can have new or improved sporting venues in the next two to three years.”

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Tucson’s a Natural for Geotourism By Christy Krueger

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ing them to go to Kartchner Caverns, stay overnight. We need to start by enticing them.” Cooper said, “Our summer campaign positions Tucson as a natural playground and elevates the cooler aspects of our destination that Phoenix lacks.” To Cooper “cool” are our world-renowned attractions like Mt. Lemmon, Kartchner Caverns State Park, Kitt Peak, Arizona-Sonora Desert Museum, Biosphere 2 and Pima Air and Space Museum. “We’re fortunate to have so many distinct and world-renowned attributes, because as a destination, we can provide the most discriminate traveler an authentic and memorable experience. The Real Southwest is resonating in international markets like Canada, the UK, and Germany, Cooper said. In addition to collaborating with the MTCVB, Ruiz and Neter met up with the Tucson Advertising Federation and were awarded a media campaign to help get the geotourism word out here at home. “We get media placement and media partners here. It’s a three-year commitment for a small investment on our part.” The campaign began last July and has received several creative awards, including Gold ADDYs in the categories of 30-second TV spot, TV cinematography, print and full campaign. The entries, all created by Godat Design, are now competing at the American Advercontinued on page 99 >>>

Sense of place is at the center of The Real Southwest. The campaign emphasizes our region’s rich cultural heritage and plays off our spectacular climate and immense natural assets.

– Allison Cooper Director of Marketing, MTCVB

advancing our city’s financial health. “What we’re doing is not just tourism based, it’s more about economic development,” he said. MTCVB and Neter agree that Phoenix is a key market. The bureau is using the Real Southwest campaign to draw travelers south this summer. “Forty percent of Biosphere’s visitors come from the Phoenix area, but they don’t stay over,” Neter said. “We need to start tell-

PHOTO: JERRY ROSEN

Photo: Courtesy MTCVB

Mt. Lemmon SkyCenter

director of marketing at the MTCVB. “The campaign emphasizes our region’s rich cultural heritage and plays off our spectacular climate and immense natural assets.” The bureau and the UA found they were on the same page. Neter emphasized that pushing the geotourism angle is an important element in the goal of

PHOTO: HOWARD PALEY

The term geotourism was created by National Geographic to describe a branch of tourism that sustains or enhances the geographical character of a destination. Tucson’s geotourism leaders define it as a sense of place – emphasizing what makes this region so distinctive. Two primary initiators of the local geotourism effort are Joaquin Ruiz, University of Arizona College of Science dean, and Rick Neter, director of special projects and marketing for the college. “I asked Joaquin what is most unique about our area and he said we have more plant and animal species than anywhere in the U.S. except for an ecosystem in Florida. Other markets have sun and golf courses – but we have biodiversity in the plants and animals of the Sonoran Desert,” Neter said. They wanted to start developing ecotourism in Southern Arizona, Neter said. “So we set off on the process. Joaquin is the leader and visionary. I’m the implementer,” said Neter, who is also the director of business and finance at Biosphere 2. Ruiz and Neter took their visions to Metropolitan Tucson Convention & Visitors Bureau early on. “They were in the middle of The Real Southwest branding campaign. They felt geotourism fit with that.” “Sense of place is at the center of Real Southwest,” said Allison Cooper,

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Lights, Camera, Action in Tucson By Edie Jarolim When it comes to Hollywood screen tests, Tucson is a natural. “Our proximity to Los Angeles, along with our great weather and great scenery, make us a choice location for the film industry,” said Shelli Hall, director of the Tucson Film Office, a division of the Metropolitan Tucson Convention & Visitors Bureau. That’s been true since long before 1939, when a Western town set built by Columbia Pictures for the movie “Arizona” led to the creation of Old Tucson Studios, where hundreds of classic films were shot. (See “Almost Hollywood” p. 88.) According to Hall, a majority of the state’s films have been shot in Tucson and Southern Arizona ever since then -- perhaps 65 percent as a conservative estimate. In recent years, however, the city hasn’t lived up to its celebrity potential.

PHOTO: GREGORY PETERS

“Goats” on location

“Arizona was in the top five of locations in the nation and the industry brought in an average of $100 million dollars a year when I started working at the film office in 1999,” Hall said. “Now the state doesn’t even rank in the Top 40.” Many factors led to this decline, including the fall from grace of the Hollywood Western and the 1995 fire at Old Tucson Studios that destroyed its sound stage along with many of its structures. Arizona’s key challenge, however, was one faced by the entire U.S. film industry. In the late 1980s, when the U.S. dollar was strong, Canada enhanced its financial attractiveness to filmmakers with a variety of tax incentives designed to further lower shooting costs. According to a 1999 study commissioned by the Director’s Guild of America, the feature films and, especially, made-for-television movies and miniseries that migrated north in the 1990s cost the U.S. economy as much as $10 billion a year.

MTCVB Ad in Sundance Film Festival Program

“Goats” Tucson Premiere

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Several U.S. states, including New Mexico, began to fight back in the 2000s by creating Canadian-style incentive programs. Their success was aided by the growing strength of the Canadian dollar and the increased cost of getting film crews to Canada. Arizona had an incentive program for five years, but it wasn’t renewed – and the state legislature has not passed new, improved versions that have been presented since. The result? Bottom-line-focused filmmakers have fled to surrounding states. That tends to be projects with budgets of $250,000 and up. Success with Indies, TV, Commercials

That’s not to suggest there’s been no film action in Southern Arizona. The Tucson Film Office makes it easy for productions that are not dependent on incentives to film here. Independent filmmakers still relish filming here and TV networks with reality programming – like MTV, Discovery and the Food Channel – film here multiple times a year, Hall said. TNT’s first reality competition, “The Great Escape,” created by the producers of the popular “Amazing Race,” filmed two episodes here in May – one at Davis-Monthan Air Force Base and the other at the Titan Missile Museum. Watch for several episodes of the Food Network’s “Chopped,” filmed at Old Tucson Studios, to air in June. The Film Office also upped its marketing to the lucrative commercial advertising market. A single commercial can easily cost $500,000 and more for filming on location in less than two days. Car commercials especially love Southern Arizona terrain – Jeep, Cadillac Escalade, BMW and more recently,

Chevrolet have all filmed commercials here. Other high-end commercials include one for Sketchers featuring Mark Cuban at the Greyhound Race Track that aired during Super Bowl 2012, as did the recent Chevy Sonic commercial. Print shoots include prestigious catalogs for Urban Outfitters, J. Crew, Sundance, Roamans and Chico’s. The Sonoran hot dog segment on the Travel Channel’s “Food Wars” points to another reason that many shows come to Tucson to film – they simply cannot find what the city offers any place else. “A lot of Discovery Channel shows are based here because of what’s going on in the sciences in Southern Arizona,” Hall said. And there’s also the region’s unique weather. “A Japanese film crew comes every summer to film the monsoon.” Oprah filmed several girlfriend getaway segments at Miraval, a world-class destination spa with a backdrop you won’t find elsewhere. While the city’s role as a location for big-budget projects has dwindled, its importance as a place to showcase films and to nurture indigenous industry talent has grown. Independent Films Debut Here

Victoria Westover, Director of the Jack and Vivian Hanson Arizona Film Institute (Hanson Film Institute) at the University of Arizona, which has a mandate to work with the community, said, “There is an amazing amount of film-related activity in Tucson for a city of its size. People in Tucson don’t realize or appreciate how much is going on.” continued on page 92 >>>

PHOTO: GREGORY PETERS

Christopher Neil Director of “Goats”

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continued from page 91

Robert Shelton Founder Old Tucson Studios

Almost Hollywood By Edie Jarolim Tucson has sometimes been called “Hollywood in the Desert” – but there was a time when Los Angeles might have become “Tucson on the Sea.” Historian Paul J. Lawton, who has worked for the last 14 years at Old Tucson Studios, explained that many filmmakers headed west in the early 20th century to escape lawsuits by New Jersey-based Thomas Edison, who owned the patents for most of America’s motion picture cameras. Lawton estimated that the first films were shot in Tucson as early as 1909. He noted that the Lubin Company and the Eclair Company both built studios in downtown Tucson in 1914. “It’s difficult to know how many films these companies shot here – maybe 50 or 60,” Lawton said. It was thought that none of these one-reel silent movies survived – yet an archive of old American films was discovered in New Zealand in 2009, and at least three of them were filmed in Tucson, one at Mission San Xavier del Bac. “Tucson was very close to becoming Hollywood,” Lawton said. A variety of circumstances -- not to mention the summer weather -- sent filmmakers on to Los Angeles but they often returned to Tucson. That return to Tucson became especially notable after 1960, when Robert Shelton leased a movie set originally built for the 1939 film “Arizona” from Pima County and turned it into Old Tucson Studios. Shelton, who sold the attraction in 1985, estimated that at least 300 films were made under his watch -- and under the watch of many visitors. “One of the conditions I had with the 92 BizTucson

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film companies that worked there was that they had to allow me to have the front gate opened for tourists. I agreed to keep those tourists a safe distance away from the production so they wouldn’t interfere with it in any way,” Shelton said. It usually worked smoothly. “We grew to be the second largest tourist attraction in Arizona behind the Grand Canyon,” Shelton said, adding, “They had a better production manager than we did.” Occasionally there was a glitch, however. When Andy Warhol came to shoot his Western parody “Lonesome Cowboys” in 1968, Shelton arrived on the set early one morning to find the actors practicing horseback riding -- stark naked. “In an hour or so we were going to open the front gate for the tourists to come in,” Shelton recalled. “I was afraid if they saw all these naked cowboys, Pima County would break our lease.” Luckily Warhol -- who later claimed he was “run out of Tucson” -was agreeable to moving all the nude scenes to Rancho Linda Vista in Oracle. Most of the films shot at Old Tucson were more mainstream. Lawton, who found a cache of negatives, slides, proof sheets and publicity stills once believed to have been destroyed in the studio’s 1995 fire said, “It’s hard to name an A-list star from the 1940s, 1950s, 1960s and 1970s who didn’t do something at Old Tucson.” A premier selection of these stars and their films are highlighted in Lawton’s beautifully illustrated Old Tucson Studios (Arcadia Publishing, 2008). Biz

That’s especially true when it comes to independent films The Loft Cinema, for example, was one of only 17 movie theaters in the nation invited to participate in the Sundance Institute’s Art House Project, an organization of independent theaters. According to Peggy Johnson, executive director of the foundation that owns and operates the nonprofit theater, the criteria for being chosen were “excellence of programming and involvement with the community.” And in January 2012, Tucson was selected to be one of nine Sundance USA participants, hosting a film and filmmaker during the Sundance Festival. Johnson said, “The Loft did really well. We were the first theater to sell out. The community loves independent films.” Aptly enough, the film showcased was one shot locally. (See “Love Letter to Tucson” p. 90.) Besides The Loft, most Tucsonans know the Screening Room and Fox Theater as other venues for independent films. Fewer are aware that Grand Cinemas Crossroads, a locally owned discount theater, and Century 20 El Con, a popular commercial movie house, each dedicate one of their screens to first-run art films. Also little known is the key role the UA plays in bringing films and film talent to town. Home to Mexican Film Fest

Tucson Cine Mexico, the only film festival in the nation devoted exclusively to Mexican films, is a co-presentation of the UA’s Hanson Film Institute and the Mexican Consulate. Westover explained, “Every year we bring up major producers and directors from Mexico. They’re very impressed by the quality of the presentations and the vibrant dialogue with the audiences.” Westover added that the festival “has definitely put Tucson on the map in Mexico as a place to bring major films.” It’s also putting Tucson on the map as the place in the U.S. to see the best in first-run Mexican films. Then there’s Inside Track, a series of panel discussions by entertainment industry professionals, from actors and agents to producers and directors. continued on page 94 >>> www.BizTucson.com


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It’s impossible to fake Tucson. New Mexico doesn’t have the same cacti, the same mountains, the same vibe. – Mark

Poirier, Author of “Goats”

A Love Letter to Tucson By Edie Jarolim “Goats” is a quirky, moving film about a boy who is raised by a single mother (played by actress Vera Farmiga) and mentored by a goatherd (David Duchovny) before heading East to college. The film was based on a book by Mark Poirier, who lived in Tucson from ages 10 to 18 – “my formative years,” Poirier said. Director Christopher Neil, who optioned Poirier’s book nearly a decade ago, said, “It was very clear that Tucson and the surrounding area were the core of the story. ‘Goats’ was a love letter to that part of the country and I really wanted to honor that in making the movie.” It wasn’t easy to get the film made in Arizona. New Mexico had a much better incentive program, and the financiers wanted to shoot there. But, Poirier said, “It’s impossible to fake Tucson. New Mexico doesn’t have the same cacti, the same mountains, the same vibe.” The filmmakers finally took the now customary approach, shooting part of the movie in New Mexico, part in Arizona. “We were very lucky to have a huge amount of support from the Tucson Film Office,” Neil said. “Shelli [Hall] and Peter [Catalanotte] were instrumental in finding ways to help us save money.” They shot at several locations, including Sabino Canyon and the Tucson Mountains, but the primary location was a Joesler home in the Foothills owned by real estate agent Heidi Baldwin. According to Neil, the cast loved Tucson, especially Farmiga. At the film’s premiere at the 2012 Sundance Film Festival, Neil said, “Farmiga was wearing the turquoise jewelry she bought in Tucson and kept saying that she’d fallen in love with the desert. She wants to come back for a family vacation.” Neil couldn’t have had a better experience in Tucson, either, as he realized when he returned for the showing of “Goats” at The Loft during the Sundance Film Festival. “When I stepped off the plane, it felt like coming home,” he said. “Goats” is opening in Tucson and other cities around the country on August 10. Biz 94 BizTucson

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Vicky Westover of Hanson Film Institute with Producer Scott Stuber and Shelli Hall

(L to R)

Our proximity to Los Angeles, along with our great weather and great scenery, make us a choice location for the film industry. – Shelli

Hall, Director of the Tucson Film Office a division of MTCVB

continued from page 92 Started in 2010 by the Hanson Film Institute in collaboration with the Tucson Film Office, this event is designed to help students in theatre, film and television at the UA and local filmmaking talent with professional development. It’s also open to the public. Westover said, “I don’t think there’s any place in the United States that has a film institute that runs concurrently with a formal university program – and I don’t think there’s any other film school that has as many programs for the community.” UA Film Pros, Alumni Open Doors

Professors within the film and television program at the UA are all actively working in the industry. They include Larry Estes, one of the producers-in-residence, whose long list of credits includes “One False Move.” And Westover, who teaches film programming, recently produced “Apache 8,” a documentary about an all-women’s firefighting crew that has been broadcast nationally more than 1,000 times. The students are clearly benefiting from the program. When director Sam Mendes, who won an Academy Award for “American Beauty,” came to town a few years ago to shoot part of “Away We Go,” the UA provided students to work as production assistants. Mendes’ production manager was very impressed. “The crew didn’t realize they were students, they were so good. They thought they’d been flown in from L.A.,” Westover recalled. According to Westover, many high-powered people in the film industry live in the Tucson area under the radar. Diana Ossana, who cowrote the screenplay for “Brokeback Mountain” with Larry McMurty, is just one example. Westover said, “They’re already established so they don’t need to live in L.A. to find work, and it’s an easy commute when they’re called.” Shelli Hall confirms that the Hollywood bond is strong and continues to be strengthened. “We cultivated entertainment-industry alumni relationships in Los Angeles by having receptions there, with the UA. We regularly meet with industry professionals and pitch Tucson as a location to the studios and other production entities. We worked closely with Disney to help craft the 2012 incentive bill,” she said. “The hope,” Hall added, “is that when the incentive landscape changes, we’ll still have all those relationships to build on.”

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Mexico Ready Workshops By Gabrielle Fimbres Is your business Mexico ready? Mexican nationals spend $1 billion in Pima County every year – and the Metropolitan Tucson Convention & Visitors Bureau wants to help you grow your sales to visitors from the south. “When people think about how to be ready for Mexican customers, the first thing that comes to mind is the language,” said J. Felipe Garcia, VP of strategic partnerships and Mexico marketing at MTCVB. “But even more important than being bilingual is being bicultural,” Garcia said. “Many people think that if they put that Se Habla Español sign in the window, they are covered. But it’s not about being Mexico friendly. It’s about being Mexico ready.” MTCVB offers free Mexico Ready workshops for business partners. “You are selling all the same things – the same shirts, the same meals, the same eyeglasses,” he said. “It isn’t what you sell – it’s how you sell it,” Garcia said. He gave the example of a restaurant at lunchtime. “We in Tucson are looking to get in and out,” Garcia said. “We love short lunch menus. We want the server to come with the water ready and the menus and to take our order immediately. We want our food quickly with

maybe one refill of iced tea and the check. We think that is really good service.” For Mexican guests, that is the worst possible service, Garcia said. With lunch as the large meal of the day, most Mexican diners are looking

Even more important than being bilingual is being bicultural.

– J. Felipe Garcia VP of Strategic Partnerships & Mexico Marketing, MTCVB

to relax, and spend a couple of hours enjoying a leisurely meal. “Offer them a beer, and don’t be in a rush,” Garcia advised. “Bring a dessert menu, and never bring the check until they ask for it. And guess what? The check will be larger.” If you bring the check before they are ready, Mexican diners feel pushed out, Garcia said, and are not likely to return any time soon. For physicians, Garcia recommends getting to know patients. Ask about where they are from and their families. Mexican patients want to know that you care about them. In the retail arena, Mexican shoppers are often looking for an entire outfit or wardrobe, not just one item. If you sell them a shirt but don’t offer to show them slacks, you are missing out. After you have made the sale, put the change in the customer’s hand, not on the counter, and walk around the counter to hand them the bags. “These are very simple things that make a big difference,” Garcia said. “Being Mexico ready builds your sales.” In addition to Mexico Ready workshops, the MTCVB offers trade and fashion shows in Mexico to reach new customers and routinely brings motor coaches filled with shoppers to Tucson.

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MTCVB Adds Ciudad Obregón Office By Gabrielle Fimbres Vamos a Tucson! Let’s go to Tucson – that is the message spreading throughout Sonora and Sinaloa, fueled by the Metropolitan Tucson Convention & Visitors Bureau. The bureau built its first Vamos a Tucson office in Mexico in 2006, with a location in Hermosillo, 217 miles south of Tucson. In March, a second office was added in Ciudad Obregón, 340 miles to our south. “The numbers are looking good,” said J. Felipe Garcia, VP of strategic partner96 BizTucson

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ships and Mexico marketing at MTCVB. The offices provide information on Tucson businesses as well as coupons and special events for Sonoran residents. The 10 employees in the two offices book Tucson hotel rooms and sell tickets to Tucson concerts, shows and other events. Last year, the Hermosillo office saw a 24 percent increase in the number of room nights booked, and 2012 is looking positive, Garcia said. In April 2012, 948 room nights were booked through the two offices.

“We are really excited about the increases we are seeing,” Garcia said. “We are looking for a double-digit increase in 2012.” The Ciudad Obregón office “has helped us reach a new market,” Garcia said. “It’s important for us to be part of the community – and people in Obregón are so proud that Tucson is paying attention to them,” he said.

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Tucson Jewel for Gems Year Round By Teya Vitu Each February, Tucson becomes the destination for some 55,000 of the world’s most impassioned sellThe Gem Show ers and buyers of rocks of all shapes mobile app has and sizes who venture to the Southgenerated nearly west for serious gem shopping. 85,000 Nobody argues that the Tucson page views Gem, Mineral and Fossil Showcase is the largest gem extravaganza in the world. But Jane Roxbury argues that Tucson is a vibrant gem tourism destination even after the hotels clear out and the huge tents come down. Just this spring, she launched a page on the Metropolitan Tucson Convention & Visitors Bureau website dedicated to year-round gem tourism: www.visittucson.org/realgems. “It was easy for me to repackage the resources we have for fans of gems, minerals and fossils,” said Roxbury, MTCVB’s director of convention services. “This is an opportunity for us to promote those venues that are already here.” Roxbury discovered that nearly 40 percent of the winter gem shows are locally owned and operated. Some shows even provide long-term storage in their warehouses as value-added for vendors. So far, Roxbury has recruited two warehouses, five mine tours, six museums, four studios/shops and one bead shop for the website, with several additional rock and gem shops recently added. The gem tourism promotion is perfect timing for A Bead Carnival, which changed its name from ABC Direct in 2009, and converted from wholesale to year-round retail in 2010. “People like the fact they can come to our store any month of the year and it feels like a mini-gem show for them,” said Susan Smith, who owns A Bead Carnival with her husband, Tomas. “We feel the potential for a year-round gem show has already begun. It’s because Tucson has gained the reputation of being the heart of the gem and mineral world.” The Arizona Geological Survey produces a geotourism brochure that is a treasure map to some 20 destinations within 30 miles of Tucson. Geotourism is primed to grow substantially with the MTCVB internet promotion. “I would imagine it would balloon very quickly,” said Mike Conway, chief of the survey’s geologic extension service. The gem showcase itself in 1994 expanded beyond February with a fall gem show in September. By the time Roxbury began online promotions of Fall Gem Shows in 2007, a half dozen or so shows clustered around the Holiday Inn on Palo Verde Road. The fall gem show attracts about 4,000 attendees with the next show set for Sept. 6-12. Roxbury has also brought a dealer or two to set up gem “trunk shows” at about a half dozen conventions. The growth potential for tables at conventions is nearly endless, with the bureau itself booking some 400 conventions and conferences each year. 98 BizTucson

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BizTOURISM

Roxbury’s gem trail has already brought new visitors to the University of Arizona Mineral Museum, which gets about 45,000 visitors a year to its collection of 40,000 items curated over a 125-year period. “People say ‘I didn’t know Jane Roxbury MTCVB’s Director of Convention Services this place existed. I didn’t know it was here,’” said Mark Candee, assistant curator and collections manager. Candee believes the potential for a year-round gem destination is astronomical, much as even the true value of the twoweek gem showcase is not appreciated. “The value to Tucson is way underestimated,” Candee said. “The money that flows through here is phenomenal. A friend pointed out to me seven billionaires within an hour.”

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Tucson’s a Natural for Geotourism tising Federation national level. Tucson residents are a vital component in attracting new visitors and businesses to Southern Arizona, Neter explained. “First and foremost, the thrust of the effort is to educate locals who can educate those from outside the community. We want the residents to understand more about the Tucson area. We need Tucsonans to be ambassadors.” Tumamoc Hill is an example of a resource that Neter feels should be more widely promoted, as it was instrumental in attracting early settlers to Tucson. The Sky Island Sense of Place Tour is a little-known educational program that teaches about the various life zones encountered on the way up to Mt. Lemmon. “On the top is UA SkyCenter, now a public viewing place similar to Kitt Peak,” Neter said. “We have unique wonders nobody else has.” Another element of this movement involves the College of Science forming partnerships in the community. “Joaquin wants to help Tucson move forward and to bring UA’s experience and assets to help showcase Tucson to the outside world. He wants businesses to know that UA is here to help. It’s a resource and needs to be thought of that way.” Neter would like to push Tucson’s Old Pueblo nickname into the closet and update the city’s image by referring to it as Science City. “We have aerospace, biosciences, solar. UA helped the Phoenix Mars Mission. We have the No. 3 and No. 6 biotech firms in the world at Innovation Park. It’s about looking at the city in a new way. TREO (Tucson Regional Economic Opportunities) needs this science push.” When companies consider relocating, one of their top requirements is to be near a major research university, according to Neter. Why not emphasize that? “We need to be more vocal about it and highlight the good things that we don’t always pay attention to.” “Southern Arizona’s geotourism and science assets fit right into our Real Southwest branding and support our seven destination drivers – those unique attributes that draw travelers here for extraordinary experiences that other destinations cannot offer,” said Brent DeRaad, MTCVB’s new president and CEO. Biz www.BizTucson.com

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Business is Looking Up for Region’s Resorts By Christy Krueger

As the recession slowly slips behind us, Tucson area resorts are experiencing a sense of rejuvenation and optimism about what lies ahead. Some are finishing projects that had been put on hold, others are getting a fresh start under new ownership and most are rolling out new projects and programs for guests. Follow along the Tucson resort trail and find out what’s new in 2012. Upgrades & Renovations

Miraval Arizona resort and spa just completed a ninemonth, $5 million renovation, opening its Life in Balance Spa May 1. “The new spa is in the footprint of the old,” noted Carol Stratford, Miraval’s director of marketing. “We’ve partnered with Clarins skin care line to develop a new spa menu.” Founded 60 years ago in Paris, Clarins is the No. 1 European skincare company. Its collaboration with Miraval allows the spa to offer customized skin care regimes, professionalgrade products and spa treatments backed by cutting-edge botanical science, she said. “We’ve added private spa suites within the spa, and the women’s locker room is now an indoor/outdoor area. It’s all designed to bring the outside in,” Stratford said. The same team that designed The Villas at Miraval – Mithun Architects and Clodaugh Design – created the reborn spa facility. Miraval also launched its first cookbook called “Mindful Eating” with 200 recipes compiled by the resort’s culinary, beverage and nutritional teams. Each dish invites guests to incorporate Miraval’s healthy cuisine into their everyday lives. Westin La Paloma Resort & Spa made headlines earlier this year when it was purchased by Southwest Value Partners, a group led by former Tucsonan Robert Sarver. As the property enters into a renewed 20-year agreement with Westin, physical changes are underway. Renovations will be done in phases. “The complete renovation will be $30 million. It’s the largest renovation ever undertaken since we opened and it covers practically all areas of the resort,” said Richard Brooks, director of marketing. Updates will begin this summer to meeting spaces and guest Miraval Arizona

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rooms, and the HVAC equipment will be replaced with a new type of system. “Instead of re-circulating air, we’re drawing air from outside to enhance the fresh smell,” which should also be better for indoor allergy sufferers, he said. Repairs were done this spring to the 177-foot waterslide. “This summer we’ll have live music at the pool on weekends and dive-in movies,” Brooks said. Arizona-Sonoran Desert Museum representatives will provide activities with a family theme. After the summer swimming season is over, remaining pool renovations will be performed, including new decking, cabanas and landscaping. Hilton Tucson El Conquistador Golf and Tennis Resort is in the midst of a $6 million resort remodel. The biggest project is the conference center, according to General Manager Lynn Ericksen. The existing 7,000 square feet of meeting space will soon become an 11,000-square-foot executive conference center. It was designed to comply with the standards of the International Association of Conference Centers. If it receives the IACC designation, as Ericksen anticipates, it will be one of 300 in the world. Sundance Restaurant also is being remodeled, and the restaurant formerly known as Dos Locos is undergoing a transformation to Southwestern fare, Ericksen said. All 16 onsite tennis courts were replaced with an improved surface, and the tennis clubhouse was updated. “We have several USTA-sanctioned events, both youth and adult tournaments. Members and the public are happy with the new courts,” Ericksen said. El Conquistador formed partnerships with the Desert Mucontinued on page 102 >>>

Westin La Paloma

Hilton El Conquistador

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Westward Look Wyndham Grand

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The Lodge at Ventana Canyon also recently completed upgrades, including improvements to the lobby areas, both golf courses and the stadium tennis court, according to Janet Hare, director of sales and marketing. New carpet in the meeting spaces is planned. Summer brings activities such as golf and tennis camps and the popular Flip & Float, the resort’s version of poolside movies. Summer golf memberships are available. The property’s received high ratings from travel publications, including Condé Naste Traveler, Golf Digest and Travel & Leisure. “For 15 years running we’ve received the AAA Four-Diamond Award,” Hare said. Tennisresortsonline.com recognized The Lodge at Ventana Canyon as a Top 50 Tennis Resorts in the World for four years in a row, and both the Mountain Course and Canyon Course were recently included in Golfweek’s 100 Best Resort Courses list. Going Solar

White Stallion Ranch is one of Southern Arizona’s few remaining dude ranches. Co-owner Russell True has lived on the ranch since he was five years old and he’s active today in its operation and management. Last year True contracted with Solar Path to install a system that he claims is the largest private solar installation in the state and the largest of any dude ranch in the United States. The ranch now depends on solar power for much of its electrical needs. For the third consecutive year, White Stallion will be open all summer, breaking its earlier trend of closing during the warmer months. This is to accommoThe Lodge at Ventana Canyon

date international guests and to attract corporate business to the 3,000-acre property that offers meeting rooms, private dining and plenty of activities for everyone. After working up an appetite, guests can chow down in the recently restored main dining room that’s been returned to its original early 1900s design. New ranch offerings this year include Beer and Cheetos Rides and Wine and Cheese Rides, both available by horseback or hayride. Newest Resorts

Casino del Sol Resort, Spa and Conference Center opened last November, likely Tucson’s largest hotel construction project completed in 2011. “In addition to the 215-room hotel tower, which includes a full-service spa and a great steakhouse, we opened conference space, where concerts are held, too,” said Steve Neely, chief marketing officer and assistant GM. The conference center got off to a strong start this spring with well-attended events including Body and Sol Old Pueblo Women’s Expo and Tucson International Mariachi Conference, which helped boost hotel occupancy. Casino updates include a new 200seat, multiple-cooking-station buffet, a newly opened high-limit room and a remodeled poker room. The largest project to get under way this year is the 18-hole, par-72 championship golf course, expected to open by spring 2013. “Notah Begay designed it and we’ll have a Jack Nicklaus Golf Academy,” Neely reported. Begay is the only full-blooded Native American on the PGA Tour. Summer activities include AVA AmWhite Stallion Ranch

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Photo: BalfourWalker.com

continued from page 101 seum and Tohono Chul Park for summer educational programs. The Acacia pool is now age-restricted (16 and older), with a more peaceful atmosphere, cabanas, quiet spa music and healthy spa food. This proved to be a very popular move, he said. The main pool remains family friendly. Westward Look Resort became a Wyndham affiliate on Feb. 1 and is now known as Westward Look Wyndham Grand Resort & Spa. David Yamada was hired as the new general manager, coming to Tucson from the Wyndham Kingston Hotel in Kingston, Jamaica. This is Wyndham’s only Grand Collection property in Arizona. “Wyndham was interested (in Westward Look) for a while. Over time, it became right for it to happen,” Yamada said. Remodeling will continue in the resort’s public areas. “With our new ownership plan, we’ll have upgrades in the next year to the Gold Room and Lookout Bar & Grille and a little in the lobby area,” Yamada noted. Throughout 2012, Westward Look is celebrating a big birthday – 100 years – with a Call for Treasures contest and the publishing of a book called “History of Westward Look: 100 Years in the Making.” Memorabilia collected during the contest will be displayed in the hotel lobby. Some items are featured in the book. To encourage the public to help celebrate, Westward Look is offering guest rooms for $100 per night through the summer.


phitheater’s lineup of musical acts and the recently launched adults-only swim party on Sundays from noon to 5 p.m. at the resort’s new pool. The public is welcome to join these weekly parties for a $10 fee, which includes two drinks. Hotel guests are admitted free. The Ritz-Carlton, Dove Mountain, which opened in 2010, made the 2012 Condé Naste Traveler Gold List and was voted the No. 3 resort in Arizona last fall in the magazine’s Readers’ Choice Awards. The resort received one of the highest scores in the nation on both lists for activities, said Bonnie Crail, director of public relations. This spring the resort launched the Dove Mountain Rangers, a program for children ages five to 12, which includes its own ranger station and a desert tortoise habitat. “There are cultural days for kids with teachings on how to do things related to Native Americans, cowboys and miners. Pins are given to kids for completing certain activities,” Crail said. Also new is the Sunday Market Brunch at CORE Kitchen & Wine Bar. A 42-tree citrus grove was planted for guests’ picking pleasure. Returning from last summer is Splash Dining – where guests enjoy a super cool outdoor dining experience no matter the temperature – with tables and chairs placed in the pool. New on staff are Executive Chef David Serus, from the Ritz Carlton in Washington D.C., and Spa Manager, Marysell Diaz-Garcia, from Ritz-Carlton properties in Coconut Grove and Sarasota, both in Florida. Guests who take advantage of the Summer Returns program receive a $50-per-night credit at the spa or elseCasino Del Sol Resort Hotel

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where on the property when booking accommodations and breakfast for two at the price of $199 per night. JW Marriott Starr Pass Resort and Spa incorporates the natural desert as its landscape design theme, drawing on the beauty of its mountainous location Opened in 2005, the resort includes 575 spacious guestrooms, 88,000 square feet of meeting space, five restaurants, a 20,000-square-foot spa, four separate pools and a Lazy River. The resort’s Arnold Palmer Signature golf facility consists of 27 holes and practice facilities. This is Southern Arizona’s largest resort and the only true eco-resort in Tucson, said Matt Brody, director of sales & marketing. The Hashani Spa incorporates natural desert plant oils in treatments and offers direct access to Tucson Mountain Park hiking and mountain biking trails. In April it was voted among the nation’s top 100 mainland spas by Condé Nast Traveler readers. The resort’s eco theme extends to the award-wining Primo restaurant with celebrity chef Melissa Kelly featuring organic foods and fresh fish. Guests enjoy extensive water features, including the Starr Canyon Lazy River experience – a 123-foot-long slide that links to the Lazy River. The slide stands 25 feet tall, offering 360-degree views of Tucson Mountain Park and the cityscape of Tucson. A new exclusive island patio was constructed right in the middle of the Lazy River. “Access is via a custom bridge,” Brody said, “for group customers only.” Framed by flowing waters and stateof-the-art lighting, this area is in high demand. “It is truly spectacular,” he Ritz-Carlton, Dove Mountain

said, “and complements the resort’s wide variety of outdoor venues and restaurants.” New Activities & Programs

Canyon Ranch launched new programs in the past year, some with proven worldwide appeal and others that are unique. “We added a high ropes course and rock wall,” said Sheryl Press, public relations director. “We’ve initiated new classes like outdoor boot camp and outdoor adventure activities such as fire making and arrowhead making.” Also new this year is Exercise & Motivation, which addresses the psychological and physiological aspects of exercise. “It’s for people who have trouble exercising – and to figure out why you don’t like it,” Press said. Canyon Ranch SpaClub at Sea expanded its cruise line presence this year. In May it stepped aboard Oceania Cruises’ brand new luxury ocean liner Riviera. Recent accolades for the Tucson location include SpaFinder’s Readers’ Choice Awards in the categories of Best for Cooking Classes, Best Cuisine, Best Medical Spa Program and Best for Men. Loews Ventana Canyon is gearing up for summer with a new emphasis on family activities. For the Wild Side of Summer program, the resort is teaming up with representatives from the Desert Museum, on weekends for animal and geology demonstrations, and “anything they do as an educational program at the museum,” said Jennifer Duffy, the resort’s director of public relations. “We like to say we’re a mini Desert Museum East,” continued on page 104 >>> JW Marriott Starr Pass

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BizTOURISM continued from page 103 she added. Tucson Botanical Gardens also will be part of the summer fun with its wicked plants exhibit. And each holiday weekend, the resort will have a solar telescope available. Stargazing and dive-in movies will continue throughout the warmer months. While Loews is targeting families more than in recent years, it continues to attract couples with its summer holiday jazz weekends with top international smooth jazz musicians, plus special room/ticket packages, Duffy said. Also fitting for adult tastes is the transformation of The Flying V’s north patio into a comfortable outdoor lounge with fire pits. “We created a lovely sitting area, surrounded by vegetation,” Duffy said. Condé Naste Traveler picked Loews Ventana Canyon as one of the Top 10 Arizona Golf Resorts this year. U.S. News & World Report included the resort on its Best Hotels in the USA list. Tubac Golf Resort & Spa added a fun new element to Dos Silos Restaurant with once-a-month Summer Parties held through August. In addition, Stables Ranch Grille continues its tradition of live entertainment every Friday and Saturday, said Patti Todd, marketing director. New executives include Jill Winberg, spa director, and Stefan Rockel, food and beverage director. Golfers can look forward to the resort’s upcoming golf school October 28-31. “It includes three nights stay, three days of excellent instruction with swing analysis and a CD to take home, tournament and prizes, plus breakfast, Canyon Ranch

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lunch and two dinners,” Todd said. Rates are based on single or double occupancy. A commuter rate is available for those driving down each day from Tucson. The course lays claim to an April visit by Dave Pelz. “He’s the short-game guru who works with Phil Mickelson,” Todd noted. Randy Blunt, who plays in the Autism Charity Golf Classic every year at Tubac, won a national contest presented by Golf Magazine. Part of his prize package was a lesson from Pelz at Tubac Golf Resort. Perhaps the biggest news for the resort is a noticeable uptick in business. “We have more weddings than we’ve ever had. This is turning into a popular place to have weddings,” Todd said. “And we have more charity golf tournaments.” Desert Diamond Casino & Hotel management believes that client feedback is important when determining the direction to take with its properties. The Sahuarita location, now 12 years old, received minor updates, including a new video wall in the sports bar, a VIP room and new AC slot machines, the first of a kind in Arizona, said Treena Parvello, director of marketing and public relations. The Tucson property recently had some redesigning done to parts of the floors. “In response to guest feedback, we added new TVs to the hotel rooms and we improved the lighting in the casino, especially around the water features,” Parvello said. Both casinos also have new executive chefs – Pascual Rodriguez in Sahuarita and Michael Bujold in Tucson. Loews Ventana Canyon

Summer 2012

Summer is when most of the planning and evaluation occurs, Parvello said. “We understand we need to make changes to keep up with market needs. There has to be evolution.” Desert Diamond Casino & Hotel has earned the AAA Three-Star hotel rating. Metromix lists the Tucson location’s steakhouse as Best Steakhouse in Tucson. Celebrations

Omni Tucson National Resort is celebrating its 50th anniversary with two-night-stay room packages that include a $50 resort credit. This can be used at all outlets – spa, golf and restaurants, said Dan Dickhart, director of sales and marketing. Bob’s Steak & Chop House is running a summer three-course prix fixe menu for $39.99 Tuesday through Saturday. Golf specials are also available, such as unlimited golf packages all summer, and junior golf clinics are scheduled to keep the kids busy when school is out. Monthly specials are offered in the 13,000-square-foot, Mobil Four-Star spa. The resort recently won Best Golf Course and Best Bar and Grill locally, and Bob’s Steak & Chop House was included in the Talk of the Town list, an online customer satisfaction rating service. Dickhart noted a handful of new and recently promoted employees at the resort. Tom Nelson is director of financing, Corie Campbell is spa director and Audra Barrios is catering sales manager. Promotions include Charliene Horne to food and beverage outlet manager and Andrea Bravo to Bob’s Steak & Chop House manager. Tubac Golf Resort

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Desert Diamond Casino Hotel

Focus on Food

Hacienda del Sol Guest Ranch Resort is concentrating on its culinary amenities this summer as it continues to win awards from restaurant and wine reviewers. “The biggest project is the Terraza Patio Kitchen,” said Tom Firth, managing partner and general manager. “We’re making the outdoor exhibition cooking station bigger and better and

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Omni Tucson National

expanding the menu. It’ll be during June. The patio will still be open in the evenings and we’ll still have live music on weekends.” In May The Grill began offering a special fixed price three-course menu that will continue all summer, and monthly wine dinners are being held through October. Firth said specials and music are promoted through its website under Hacienda Happenings.

Hacienda del Sol

For the 15th year in a row, the resort received a Best of Award of Excellence from Wine Spectator, Firth said. “And we were voted a Top 5 Restaurant again” in a local reader’s poll. Like most resorts, Hacienda del Sol is running special summer room rates while also performing customary upkeep. “We use the lower occupancy months for maintenance and upgrades to the guest rooms,” Firth said. Biz

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PHOTO: STEVEN MECKLER

Glass Act By Sarah Burton

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BizART You may think you already know Tom Philabaum, Tucson’s master of glass. A longtime resident creative, he’s widely respected in the local arts community and his gallery and studio are a must-see stop for art-loving tourists. You may know about the carefully crafted glass art that made him (and keeps him) successful, but not so much about how he created his business the hard way, his view on role of art in our region’s tourism and changes in the downtown landscape. Read on. Getting There

After receiving a bachelor of arts in arts education from Southern Illinois University and a master’s degree in studio art in Wisconsin, Philabaum headed to Arizona in 1973 to visit his cousin, escape Chicago for a while and take a break from his teaching job. “I never felt I belonged in Chicago,” he recalled. “I lived all over the state but didn’t feel comfortable.” Just one look at the dramatic stretch of Texas Canyon driving on his way to town was all it took. “I distinctly remember coming through the canyon there on I-10 and really flipping out over the saguaros and boulders.” Two years later he quit his job in Chicago and officially made the Sonoran Desert his home, putting together his first studio next to the Tuller Trophy building on Sixth Avenue. Nights and weekends were dedicated to studio time, but he didn’t quit his day jobs quite yet. He did a bit of everything – from driving a truck, laying bricks and carpentry to teaching high school and even a stint as a roofer. “We used to carry over our rent payment to our landlord, having scraped together our pennies, dimes and quarters and just barely making it,” he said. ’80s Art Boom

The start of the 1980s kicked off an enormous swell in the public’s interest in and desire to buy and collect arts and crafts, Philabaum said, though not in the Old Pueblo quite yet. Around

1982 local artists began marketing their wares by attending American Craft Council shows where they were overwhelmed with orders from galleries and museums all over the country. The Craft Council, made up mostly of young artists without any background and art school graduates like himself, filled an increasing need from the public for arts in mediums like clay, metal, wood, glass and fiberglass. “It was an exciting time,” Philabaum said. “Creativity was flying and we were actually making money with our craft.” After founding the Glass Arts Society in 1983, Philabaum overhauled an old Tastee Freeze and in 1985 moved his studio to that space where it remains today. Local Arts Blossom

By the early 1990s Tucson’s growing art scene was finally generating excitement and the Metropolitan Tucson Convention & Visitors Bureau began to market the Old Pueblo as an arts hub. “The MTCVB played an enormous role in creating this new model of Tucson as a cultural destination – bringing people here not just for a fat farm, to see a rodeo, or because of the military,” Philabaum said. In fact, he points out the little known fact that Tucson is consistently ranked in the Top 25 Art Destinations in American Style magazine. “When I first moved here, the Tucson Museum of Art was in a small house on Franklin Street. Quite different from the museum that stands today.” By 2002, interest in Philabaum’s work was so high – from locals and tourists alike – that he opened a second gallery at St. Philip’s Plaza for the next five years. Tourism has always played a role in this struggling, then successful business model. With the recent installation of glass magic carpets suspended overhead at the Tucson International Airport, he’s even had people get in their rental car there and drive straight to his gallery on Sixth Avenue to see more.

He’s seen many changes since moving downtown in the mid ’70s. “Downtown is changing in a great way. I’m all for new business and it’s really changing for the better,” he said. “Sure, we all miss the original Café Poca Cosa and the Santa Rita Ballroom, but the brand new Tucson Electric Power building now on that lot is great for all surrounding businesses.” Passing the Torch – Literally

As studio visitors attest, the observation window is where the action is. Watching artists working with molten glass is magical. “We’ve always had an open studio. Education has always been a big part of making art for me,” Philabaum said. “We closed the studio to the public for a short time, but quickly realized it was crazy not to let people in. After teaching workshops for 25 years, I have a responsibility to pass on what I’ve learned.” That’s why he co-founded the Sonoran Glass Art Academy in 2000, a nonprofit organization dedicated to educating and using glass as a medium. The academy offers classes for anyone interested – from glass blowing and casting to stained glass and mosaics. In an effort to further push the glass arts culture here, Philabaum and other local visual arts heavyweights banded together to create Tucson’s first glass festival, aptly named Viva Vidrio – long live the glass. “We were really just trying to make lemonade out of lemons,” he said. “Because of the tourism backlash due to the controversial SB1070, Tucson lost the annual Glass Arts Society conference. We wanted to draw people back here.” And draw it did. In April of last year 1,200 people attended the three-day festival with demonstrations and exhibitions at 12 participating galleries across town. Anyway you cut it, after more than 30 years, Philabaum remains a glass act. Biz

Philabaum art includes glass magic carpets suspended overhead at the Tucson International Airport (center). Photos courtesy Philabaum Glass

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M T C V B

B O A R D

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D I R E C T O R S

Chairman of the Board 2011-2012 Lynn Ericksen

General Manager Hilton Tucson El Conquistador Golf & Tennis Resort

PHOTO: KRIS HANNING

Ericksen is known in the lodging industry for his commitment to growing tourism and working with other destinations to enhance the visitor experience. He’s upgraded Hilton El Conquistador with major renovations, encouraged a green culture among staff and visitors and increased exposure of the resort through numerous awards. In 2011, Arizona Hotel and Lodging Association named Ericksen Hotelier of the Year. The resort became part of that organization’s Certified Green Lodging program. Ericksen was treasurer for Northern Pima County Chamber of Commerce and is the outgoing chairman of MTCVB.

Photo: BalfourWalker.com

520-544-5000 www.hiltonelconquistador.com

Alex Ahluwalia

General Manager, JW Marriott Starr Pass Resort & Spa Since 2007, Ahluwalia has grown the resort’s market share and led it to receive accolades from travel media, event planners and guests. Named Marriott International’s GM of the Year for North American Lodging Operations in 2008, he came to Tucson from the JW Marriott Fiji Resort & Spa. He serves on the MTCVB Marketing Committee and is a board member of Southern Arizona Lodging and Resort Association. 520-792-3500 www.jwmarriottstarrpass.com

Incoming Chairman of the Board 2012-2013 Michael Luria

Executive Director Children’s Museum Tucson Luria, who formerly ran Terra Cotta in the foothills, now leads his staff in providing fun, play-based interactive and hands-on learning experiences for children of the community and their families. He’s taken the museum through significant transformations with the addition of major new exhibits made possible by community partners. This month the baton will be passed to him as the new MTCVB board chairman. Additional community involvement includes co-chairing the Tourism Advisory Committee for the Arizona Office of Tourism. He also writes the Meals & Entertainment column for Inside Tucson Business. 520-792-9985 www.childrensmuseumtucson.org

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Richard Bratt

Shareholder/COO, Tax BeachFleischman Bratt’s responsibilities with BeachFleischman are in the tax division of the practice. He serves as the treasurer for MTCVB and is a member of its Executive Committee. Other organizations Bratt has served include Boys & Girls Clubs of Tucson, Caballeros del Sol, Executive Association of Tucson, Financial Executives & Affiliates, Arizona Business Leadership and Rotary Club of Tucson. 520-321-4600 www.beachfleischman.com www.BizTucson.com


M T C V B

B O A R D

Sharon Bronson

Wes Clark

John Cousins

As an elected official representing District 3, Bronson serves constituents in a 7,400-squaremile area covering all of western Pima County. She’s on the MTCVB Finance Committee and is a TREO Chairman’s Circle Member. Bronson also serves on the board of the County Supervisors Association of Arizona and is a member of the Marana Health Center Advisory Board.

Although Clark oversees all sales and marketing efforts for the hotel, he places a particular emphasis on downtown and Tucson Convention Center events, international visitors and sports and group bookings. As president of Southern Arizona Attractions Alliance, he serves as its representative on the MTCVB board of directors.

Cousins oversees the operations of the recently renamed property on North Oracle that markets to vacationers, business travelers and extended-stay guests who are looking for comfortable accommodations in the foothills. To keep up with today’s technology-oriented traveler, Cousins supplements his sales efforts with an emphasis on social media.

Vice Chair, Pima County Board of Supervisors Pima County Government

520-740-8051 www.pima.gov

Mike Feder

VP & General Manager Tucson Padres In his role directing the business end of the Tucson Padres, Feder is responsible for marketing, accounting, sales, public relations, ticket sales, merchandise and concessions. He serves on MTCVB’s Marketing and Nominating Committees as well as numerous other community boards including Father’s Day Council and Tucson Police Foundation. Feder is a Davis-Monthan AFB honorary commander and executive director of Caballeros del Sol. 520-954-8803 www.tucsonpadres.com www.BizTucson.com

Sales Director Arizona Riverpark Inn & President Southern Arizona Attractions Alliance

520-239-2300 www.theriverparkinn.com

General Manager Best Western Plus InnSuites Tucson Foothills Hotel & Suites

520-297-8111 www.innsuites.com/tucson_ foothills

Fred Gould

Firth is GM/managing partner of Zona 78 restaurants, as well as the managing partner with Hacienda del Sol, He’s currently serving on the MTCVB Partner Development and By-Laws Committees. Other community involvement includes Casas Adobes Rotary Club, where he’s been a member since 1989 and is a past president. He’s also past assistant governor for Rotary District 5500.

Gould coordinates all marketing functions for Arizona Shuttle, which operates throughout the state. He is currently on the MTCVB Marketing Committee and recently served on the By-Laws Committee. In addition to his work with MTCVB, Gould is an active member of the Southern Arizona Lodging and Resort Association, the Arizona Lodging and Tourism Association and the Southern Arizona Concierge Network.

520-299-1501 www.haciendadelsol.com

Jim Di Giacomo

Executive Director Green Valley Sahuarita Chamber of Commerce & Visitor Center Di Giacomo’s chamber responsibilities include financial operations, board administration and public relations. In addition to being a member of the MTCVB Marketing and Community Relations Committees, he serves numerous organizations. Among them are Southern Arizona Tourism Council and Governor’s Arizona Mexico Commission. In 2006 he received the Elks’ Citizen of the Year Award.

Richard J. Gruentzel

Marketing Director Arizona Shuttle

520-795-6771 www.arizonashuttle.com

D I R E C T O R S

520-625-7575 www.greenvalleysahuarita.com

Tom Firth

Managing Partner Hacienda del Sol Guest Ranch

O F

VP Administration & Finance/CFO Tucson Airport Authority Gruentzel runs the business operations for Tucson International Airport and Ryan Airfield. Responsibilities include business and air service development, property leasing and management, terminal concessions and ground transportation. He’s on the MTCVB Finance and ByLaws Committees and is also a congregation council member and treasurer of Abounding Grace Church. 520-573-8100 www.flytucsonairport.com

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M T C V B

B O A R D

Bill Holmes

Chief Operations Officer Tucson Metro Chamber Holmes is responsible for all issues related to the chamber’s finances, operations and human resources. He serves as chair of MTCVB’s Government Relations Committee, Chicanos Por La Causa and Interfaith Community Services Advisory Board. Holmes is also a member of SKAL and he’s on the board of trustees for Community Foundation for Southern Arizona. 520-792-2250 www.tucsonchamber.org

O F

D I R E C T O R S

Helinda Lizarraga

General Manager DoubleTree by Hilton Tucson at Reid Park

Heather D. Lukach

Director, Visitor Center University of Arizona

Pete Mangelsdorf

CEO & General Manager Old Tucson Company

While overseeing daily operations of the UA Visitor Center, Lukach promotes it as a resource for campus and Southern Arizona. This is achieved through tours, UA publications and participating in universitycommunity partnerships and special projects. Lukach is currently serving her first year on the MTCVB board and chairs its Partner Development Committee.

Mangelsdorf provides overall leadership and day-to-day management of Old Tucson. He’s a member of the MTCVB Nominating Committee, CEO/ President Executive Search Committee and serves on the Government Relations Committee. He’s also the State Film Commissioner, serves on the 88 Crime board of directors and is a past board member of Friends of Saguaro National Park.

520-621-5130 www.arizona.edu/parentsvisitors

520-883-0100 www.oldtucson.com

Barbara Peck

Andrew D. Schorr

Shirley Scott

Strategic public relations/crisis communications consulting and CEO coaching in community relations are among the services Peck provides to businesses and nonprofit organizations. She serves on the MTCVB Community Relations Committee and as chair and secretary of the MTCVB Executive Committee. Peck has been honored as Tucson Metro Chamber Woman of the Year and serves on the board of directors for University of Arizona Health Network and Salpointe Catholic High School.

As a partner in Lewis and Roca’s Business Transactions Practice Group, Schorr handles the firm’s commercial real estate dealings. He’s chair of the MTCVB By-Laws Committee, a member of Arizona’s Public Media Community Advisory Board and past board member of the Jewish Federation of Southern Arizona. Schorr was included in the 2003-2012 editions of The Best Lawyers in America in real estate law.

Scott was elected to the City Council in 1995. She’s a member of the Board of Directors of Pima Council on Aging, Pima Prevention Partnership and Advisory Committee for Tucson Clean and Beautiful. She’s served on the Budget Advisory Committee and as Chairperson of the National League of Cities Committee on Community and Economic Development. She serves on the MTCVB Government Relations and CEO/President Search Committees.

Lizarraga oversees and manages all operations of the hotel, including budgets, forecasts and developing team members. She is very active with MTCVB, serving on the Community Relations, Finance, Nominating and CEO/President Executive Search Committees. Lizarraga is Second Vice Chair of Southern Arizona Lodging and Resort Association and was named Representative of the Year, 2009-2010, by Executive Women’s International. 520-323-5211 www.dtreidpark.com

Tom Moulton

Director of Economic Development and Tourism Pima County Moulton serves as the county’s government liaison with Tucson’s economic development agencies, and he works with the MTCVB Marketing Committee representing the area’s attractions. He has numerous community affiliations, among them founder and director of Southern Arizona Attractions Alliance and board member of Southern Arizona Lodging and Resort Alliance. 520-243-7355 www.tucsonattractions.com

Owner Barbara Peck Public Relations

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Partner Lewis and Roca

520-629-4414 www.LrLaw.com

Council Member City of Tucson

520-791-3199 www.tucsonaz.gov


M T C V B

Chris Smith

Owner Tucson & Scottsdale Golf Vacations/Mountain Vista Real Estate As owner of these vacation business endeavors, Smith is continually seeking out and evaluating unique marketing opportunities and new avenues for additional growth. He is a member of the MTCVB board of directors’ Marketing Committee. Smith is proud to be a veteran of the U.S. Navy and a Persian Gulf War veteran. 520-877-7924 www.tucsongolf.com www.weknowtucson.com

Mark Van Buren

General Manager Tucson Marriott University Park

Van Buren is responsible for the overall operation of the hotel. He is also co-chairman of Southern Arizona Lodging and Resort Association and serves as its representative on the MTCVB board of directors. 520-792-4100 www.marriott.com/tusup

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B O A R D

O F

D I R E C T O R S

Mary Snider

James Trudeau

Russell True

Together with fellow council members, Snider provides policy direction to the town by adopting rules, regulations and procedures to meet community needs. She’s a member of the MTCVB Government Relations Committee, VP of Amphitheater Public Schools Foundation and board member of Oro Valley Community Foundation. In 2007 Snider was the inaugural recipient of the Northern Pima County Chamber of Commerce Legacy Award.

Trudeau is responsible for all business activities and operations of United Airlines in Tucson. His current role with the MTCVB board of directors is to work with the Partner Development Committee.

As with all small businesses, True said, he does whatever it takes to successfully run his ranch – from cooking to wrangling. He serves on the Marketing Committee of MTCVB, is president of the board of trustees for Green Fields Country Day School and a former president of the National Dude Ranchers Association and the Arizona Dude Ranch Association.

Council Member Town of Oro Valley

General Manager United Airlines, Tucson

Co-owner White Stallion Ranch

520-573-8259 www.united.com

520-297-0252 www.whitestallion.com

520-229-4997 www.orovalleyaz.gov

Howard W. Volin

President & CEO Graphic Impact

Founded 23 years ago in Tucson by Volin, Graphic Impact fabricates signs, banners, printed material, awards, plaques and printed apparel, producing all product lines in-house. He is currently chair of the MTCVB Marketing Committee and is a member of the MTCVB Community Relations Committee. 520-795-7446 www.graphic-impact.com

David Welsh

Paul Zucarelli

Executive VP Tucson Regional Economic Opportunities

President CBIZ Benefits Insurance Services

Welsh is responsible for managing a wide range of economic development programs and projects while also working with stakeholders and regional economic development partners. He’s new to MTCVB, but elsewhere in the community he’s involved with Habitat for Humanity, Arizona Town Hall and Business Development Finance Corporation.

Zucarelli functions as president of CBIZ Arizona practice for employee benefits and retirement plans. He’s on the MTCVB Executive Committee, as well as the Marketing and Government Relations Committees. Other current community activities include member of Tucson Conquistadores and board member of Dependable Health and Heatlh Plan Alliance.

520-243-1900 www.treoaz.org

520-321-7520 www.cbiz.com

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PHOTO WILLIAM OLGUIN

BizMEDICINE

(L to R) Kathy Byrne, El RIo Executive Director & CEO; Mary Wakefield, Administrator, U.S. Health Resources and Services; Nanci Aiken, former Board President and Dr. Felipe Perez, El Rio Physician

A Fresh Start

El Rio Community Health Center Awarded $5.5 Million By Sarah Burton After more than three decades, the 36,000-square-foot Gomez building that houses El Rio Community Health Center on Congress Street is beginning to show its age. Plans to rebuild the clinic are now possible thanks to two federal grants totaling $5.5 million. El Rio on Congress is the organization’s original site where 15,000 patients are seen annually. Since the first clinic opened El Rio has grown to serve 76,000 patients annually in 16 locations. Plans to rebuild the 34-year-old clinic are now possible thanks to the announcement by Dr. Mary Wakefield from the Health Resources and Services Administration, an agency of the U.S. Department of Health and Human Services. El Rio will receive federal grants under the Affordable Care Act program. “These were highly competitive grants, so this is a real cause for celebration,” Wakefield said at the press conference she traveled from Washington D.C. to attend. “Community health centers like this one are leading the way. Without a doubt you can be very proud of your work here in Tucson,” she said. The $5 million grant will go towards the projected $14 million needed to complete the new clinic. Construction is slated for January 2013 with the existing clinic remaining operational – ensuring that quality service for patients is not affected. The facility should be completed by 2014. “This project exemplifies and honors our commitment to

the downtown area,” said Kathy Byrne, El Rio’s executive director and CEO. “This is a great clinic, and really the anchor of our organization. It has served us well, but it’s aging. We’re looking forward to preserving and growing it.” “It really takes a whole team to make this work, so we owe a big thanks to our grant writing team, Ken Burton and John Blackburn,” Byrne added. The new building will be designed to meet LEED certification standards set by the U.S. Green Building Council. This will be El Rio’s third clinic to receive such certification. It also will be designed with a specific focus on promoting wellness. Since it will be larger than the original structure, the facility will accommodate eight additional health care providers, which means treating nearly 7,000 more patients a year. The project will ultimately create jobs for 25 full-time employees at the health center, as well as numerous constructionrelated positions. “Community health centers are one of the best investments we can make in any sector of the economy,” said Congressman Raul Grijalva, representative of the 7th district where the Congress clinic is located. “This is a terrific boost to the entire region, and I sincerely thank HHS for meeting our need with the appropriate resources.” The second grant award – $494,638 – will fund renovations and buy much needed equipment for El Rio’s southwest location, helping increase operational efficiency and patient flow and increasing patient visits by 25 percent.

Biz

Pardon Our Dust The impending construction for El Rio’s new Congress clinic is not the only stirring in the area just west of the freeway from downtown. The new Mercado San Agustin – boasting bakeries, a taqueria, www.BizTucson.com

several shops, a bustling and popular Thursday farmers market and a recently opened Agustin Brasserie – is no longer the new kid on the block. Major construction is now underway on new Armory

Senior Housing, as well as the future location of the last stop on the line for the Sun Link streetcar system.

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BizBENEFIT

Paul Bonavia

John Rafferty

Joaquin Ruiz

Ron Shoopman

2012 Fathers of theYear Father’s Day Council Tucson has raised $2.6 million to support type 1 diabetes research By Gabrielle Fimbres More children around the world – some not yet a year old – are being diagnosed with type 1 diabetes than ever before. The disease can leave families reeling with concerns over day-to-day management and future complications. The Father’s Day Council Tucson is funding research and making life better for Southern Arizona children with type 1 diabetes. Since 1995 FDC has raised $2.6 million for Steele Children’s Research Center. “Father’s Day Council has been a very big blessing – helping in big ways and in small ways,” said Dr. Mark Wheeler, pediatric endocrinologist at the University of Arizona. At the heart of the organization’s fundraising efforts is the Father of the Year Awards Gala Dinner & Silent Auction, slated for June 16 at Loews Ventana Canyon. The 2012 Fathers of the Year are Paul Bonavia, John Rafferty, Joaquin Ruiz and Ron Shoopman – each honored for mastering the balancing act of fatherhood, career and civic involvement. “We are helping to save people’s lives, sometimes through simple things that 116 BizTucson

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help children live a healthy life,” said FDC Chair Lee Shaw. Through FDC funding, the Angel Wing for Children with Diabetes at Steele is able to care for more children with diabetes, currently treating 650. “It has been tremendous,” Wheeler said of contributions by FDC. “Before they became involved, there was one pediatric endocrinologist and really no research. Over the last eight years, we have grown from one endocrinologist to four, with another coming in November.” Funds raised have been used for a variety of research projects at UA including: • Investigating the link between poor sleep patterns in children and poor glucose control • Examining which relatives of people with type 1 diabetes are more likely to get the disease and methods of prevention • Investigating methods of extending the “honeymoon” period in recently diagnosed patients by extending pancreatic function FDC funds are also being used to attract highly regarded diabetes researchers to UA.

Wheeler said it is believed that there are both genetic and environmental components to type 1 diabetes. It is thought that those who develop the disease had a genetic predisposition triggered by a virus or other environmental insult. “If it can be determined who is at risk genetically for type 1 diabetes, treatment could be developed to prevent it, like a vaccine,” he added. The better researchers understand the disease, the closer they come to finding a cure, Wheeler said. While he said there is much work to be done, promising global research involves the development of an artificial pancreas that would regulate insulin, as well as strategies for preventing the immune system from destroying the cells that produce insulin. While efforts to find a cure are critical, helping people to manage the disease is just as important. “Diabetes is a drag of a disease to have and anything you can do to help make managing it easier and better while we’re waiting for a cure is part of the goal,” he said. FDC funds are used for new technology to help manage blood sugar www.BizTucson.com


levels and for creating a teen room for patients with diabetes, complete with a TV, computer and giant bean bag chairs. Money also is used in an incentive program, where kids receive prizes for reaching goals, such as increasing exercise. Better management of the disease results in fewer long-term complications, which include amputation, Wheeler said.

Dr. Fayez Ghishan, head of the UA Department of Pediatrics, said the “incredible” fundraising work of FDC allows Steele to improve clinical care for children. “We simply could not continue this important work without their support – so we are eternally grateful for Father’s Day Council Tucson,” Ghishan said.

Biz

Price: $175 per person or $1,750 for a table of 10

AUCTION ITEMS INCLUDE • Country Music’s 2012 Biggest Awards Night in Nashville • 2 Bronze Level tickets, VIP After Party includes airfare for two • Ritz-Carlton’s Explore Europe 5-night stay with airfare for 2 • Monterey Exploration with Hearst Castle Private VIP Tour, and 3-night stay for 4 • La Costa Resort and Spa (Carlsbad CA) 3-night luxury stay in a 2,500 sq. ft. 3-bedroom villa for up to 8

• Chicago’s Classic Wrigley Field Rooftop Seats & Dining Experience, with 3-Night (Fairmont or Swissotel) and Airfare for 2

• The Marriott Valencia, CA with tickets to Magic Mountain and spa treatments at the Ivy Day Spa

• New York’s The Plaza 4-night stay with airfare for 2 Central Park, Fifth Avenue

• 2-night stay at Canyon Ranch, Tucson.

• Loews Coronado Bay 3day/3-night plus Sea World Package • Loews Santa Monica 2-night stay

• Dinner for 8 at An Del Sol with UA Football Coach Rich Rodriguez • Skybox Suite: Arizona Diamondbacks Game

Numerous Vacations & Much More!

www.BizTucson.com

18TH ANNUAL FATHER OF THE YEAR AWARDS GALA Benefitting the UA Steele Children’s Research Center June 16, 5:30 p.m. Loews Ventana Canyon

For sponsorship and ticket information, go to www.fdctucson.org, or contact Laura Hopkins at (520) 626-9618 or hopkins@peds.arizona.edu Diamond Supporter Tucson Electric Power/ UNS Energy Corp Platinum Supporter DFM Holdings

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2012 FATHER OF THE YEAR HONOREE

Paul Bonavia

Laughter Key to Parenting By Gabrielle Fimbres

Photo: www.balfourwalker.com

You have to laugh it up a bit. Without humor, you’d really be cooked.

Paul Bonavia

Chairman & CEO Tucson Electric Power & UNS Energy Corp.

Family Wife Pat, son Christopher and daughter Laura, grandchildren Anna, Eva and Eric Involvement Tucson Regional Economic Opportunities chair, United Way chair-elect, Southern Arizona Leadership Council, Tucson Airport Authority, Arizona Commerce Authority

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Paul Bonavia has advice for dads trying to balance family, career and community involvement – lots of caffeine. “Just don’t sleep,” he mused. “That’s pretty much the strategy, that and a dozen cups of strong coffee.” Bonavia is chairman and CEO of Tucson Electric Power and UNS Energy Corp., formerly UniSource Energy Corp. He is a 2012 Father’s Day Council Tucson Father of the Year. Bonavia and his wife, Pat, are parents to Christopher, 37, who lives with his family in Brooklyn, and Laura Claughton, 35, who lives with her family in Texas. “We travel to see the grandkids as much as we can, and with Face Time and Skype, it’s easier to keep in touch,” Bonavia said. They took the family to Disneyland last fall – not exactly Bonavia’s idea of a vacation. Yet watching his little princesses with the Disney princesses “was 1,000 times better than I could have imagined. “It’s so important to build those memories,” Bonavia said. “It’s kind of the glue in life.” Also important is keeping a sense of humor. “You can’t balance family and work perfectly. You just have to do the best you can and you have to laugh it up a bit. Without hu-

mor, you’d really be cooked.” Originally from Rockford, Ill., Bonavia earned degrees from Drake University and the University of Miami School of Law, and completed Harvard Business School’s Advanced Management Program. He took the helm of TEP and UNS in 2009. He has worked to expand the company’s leadership role in renewable energy and energy efficiency. A company culture of giving back through volunteerism has long been in place at TEP. “I’ve never seen a place where people put so much of their time and effort into the community,” he said. “The concept of giving back to the community sounds good – but the real truth is it’s fun and rewarding,” he added. “You can’t be a good utility company without being a big part of the community.” Bonavia’s community involvement is focused on creating higher-wage jobs for Tucson. He said raising money for type 1 diabetes through Father’s Day Council is vital. “The disease is so pervasive and we are seeing it in increasing numbers,” Bonavia said. “It doesn’t just affect the person, it affects the family, and it is a blight on the quality of life for people.”

Biz

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2012 FATHER OF THE YEAR HONOREE

BizHONORS

John Rafferty

Family Traditions Priority

John Rafferty likes to think of Stewart Title & Trust as one big family. When rodeo vacation comes and many of his 78 employees have nowhere for their kids to go, Rafferty hosts Camp Rodeo. Employees bring children to work and Stewart’s marketing department treats them to Old Tucson, Reid Park Zoo, skating and miniature golf. “We really are a family,” said Rafferty, president of Stewart Title & Trust of Tucson and a 2012 Father’s Day Council Tucson Father of the Year. Family has always been a priority. Rafferty made sure he was at his children’s sporting events, and weekends were reserved for camping and church with the family. “I always made room for the sports – the football games, the wrestling matches,” Rafferty recalled. “My daughter was a bat girl at University of Arizona baseball games and was on the pom line.” This grandfather of seven gathers the family together at Christmas, spring break and throughout the year. Son Steven, 49, lives with his family in New Jersey. Daughter Kelly Hughes, 46, and her family live in Scottsdale. “If I had any advice it would be this – kids grow up www.BizTucson.com

very quickly. Set traditions with them now and keep them,” Rafferty said. Rafferty was born in New Jersey and spent four years in the Marines. He moved the family to Arizona in 1962 to control asthma and bronchitis in his oldest son Michael, who died in an accident in 1984. The family lived in Silverbell, with Rafferty working as an accountant for ASARCO and attending night classes at UA. He became controller at Stewart in 1974, and has remained with the company since. In 1981, he moved to Phoenix to serve as CEO. In 2004, Rafferty was asked by Stewart’s board of directors to return to Tucson, which he did. Since returning, he has increased market share from 3 to 23 percent and built the staff by 41 employees. This year, the company experienced its best first quarter revenues in 51 years. Rafferty is pleased to raise funds for type 1 diabetes research as a Father of the Year. “It’s a horrific disease that can cripple children,” Rafferty said. “I am very hopeful for a cure.”

Photo: www.balfourwalker.com

By Gabrielle Fimbres

Kids grow up very quickly. Set traditions with them now and keep them.

John Rafferty

President Stewart Title & Trust of Tucson

Family Son Steven, daughter Kelly and son Michael, who died in 1984; grandchildren John, Matthew, Kevin, Brandon, Kelsey, Connor and Lily Involvement Peppi’s House at Tucson Medical Center, Habitat for Humanity, Community Food Bank of Southern Arizona, Hearth Foundation

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2012 FATHER OF THE YEAR HONOREE

Joaquin Ruiz

Building Team Ruiz

He is a wonderful kid and my wife is a wonderful wife and mom. We are a team.

Joaquin Ruiz

Executive Dean, University of Arizona Colleges of Letters, Arts and Science Dean, UA College of Science

Family Wife Bernadette, son Peter Involvement SciTucson, Science Downtown among others

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Photo: www.balfourwalker.com

By Gabrielle Fimbres When Joaquin Ruiz’s tiny son came into the world 25 years ago, the future was uncertain. He was born too early, weighing less than two pounds. Ruiz and his wife, Bernadette, spent months in the intensive care unit at Peter’s side. Today, Peter, who has cerebral palsy, is a busy 25-yearold man – and the joy of his parents’ lives. “Peter is such a happy and easy-to-get-along-with kid,” said Ruiz, dean of the University of Arizona College of Science and a 2012 Father’s Day Council Tucson Father of the Year. “It’s just a joy to be with him.” Bernadette Ruiz, an attorney, worked with the Jewish Community Center to create a program for adults with disabilities, and Peter takes part during the day. He enjoys Judaic studies, reading to kids and learning Spanish. “He has a very rich day,” Ruiz said. Father and son love going out to eat – always Mexican food. They cheer on the Wildcats at football games and enjoy programs at the UA School of Dance. Peter often accompanies his dad to the office on weekends. “He is in a wheelchair but otherwise incredibly healthy,” Ruiz said. “He is a wonderful kid and my wife is a wonderful wife and mom. We are a team.”

The family enjoys traveling, and Peter has been to Israel, Spain, Paris, Germany and Mexico. Joaquin Ruiz was born in Mexico City to a New York mother of Polish descent and a Spanish father. “I was assembled in Mexico with imported parts,” he said. His parents were not highly educated, “but they were very well read and appreciated good art and classical music,” Ruiz said. After growing up in Mexico, he received bachelor’s degrees in geology and chemistry at the University of Miami. He received a master’s degree and doctorate in geology from the University of Michigan and joined the UA faculty in 1983. He was appointed Dean of the College of Science in 2000. Ruiz partners with K-12 education and the community to spread science beyond university walls. “We owe it to the community to be part of it,” he said. “To have a working democracy you have to have an educated population.” Through Father’s Day Council fundraising, Ruiz is happy to help combat type 1 diabetes, inspired by Dr. Fayez Ghishan, head of the UA Department of Pediatrics. He calls Ghishan “a fireball.” “I always bet on people – and the program he has created is incredible,” Ruiz said.

Biz

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2012 FATHER OF THE YEAR HONOREE

BizHONORS

Ron Shoopman Fatherhood, Leadership A Happy Mix By Gabrielle Fimbres

www.BizTucson.com

and she is one of our kids,” Shoopman said. While it is a juggling act, family is always the priority, he said. “Vickie and I put our kids first in all that we do.” The son of an Arizona lumber yard owner, Shoopman is a retired Air Force brigadier general and a former wing commander of the 162nd Fighter Wing. He served as sales manager for Gates Learjet Corp., a pilot for Continental Airlines and an instructor pilot and manager for Flight Safety International. He took the helm of SALC in 2005. Under his leadership, the organization now includes about 100 CEOs involved in issues that impact Southern Arizona – including education, infrastructure, health care and governance. “We have had marquee success – but we have work to do to make Tucson the best it can be on the foundation of a solid economic base,” Shoopman said. “There is nothing better to help kids who go to bed hungry at night than creating jobs for their parents.” Shoopman is pleased to raise funds for type 1 diabetes. “Hopefully the Father’s Day Council will help more community leaders understand about the devastation of this disease,” he said.

There is nothing better to help kids who go to bed hungry at night than creating jobs for their parents.

Photo: www.balfourwalker.com

Serving as a community leader is a lot like raising children – there’s always sacrifice involved. Just like in child rearing, the time spent in nurturing and building relationships in the community pays off in the results, said Ron Shoopman, president of Southern Arizona Leadership Council and a 2012 Father’s Day Council Tucson Father of the Year. “It’s all in the juggling,” Shoopman said of parenting. “You have to arrange your schedule and prioritize the things that are important.” Shoopman and his wife, Victoria, a nurse, have been blessed with a tremendous family. “All three of our kids are college graduates and I have five grandbabies,” he said. “I am a happy guy.” Son Chad, 38, lives in Orlando, where he is lead trumpet player at Disney World. Daughter Brandi Dignum, 36, is a music teacher at Richardson Elementary School in Tucson. She was selected as one of the top five teachers in the state by the Arizona Educational Foundation in 2011. Daughter Bethany Lashmet, 38, is a teacher living in Japan. She joined the family at age 14 after losing both parents – her father to an allergic reaction to bee stings and her mother to cancer. “We are mom and dad

Ron Shoopman

President, Southern Arizona Leadership Council Brigadier General, USAF (retired)

Family Wife Vickie, children Chad, Brandi and Bethany, grandchildren Katerina, Kirk, Autumn, Grant and Sophia Involvement Numerous organizations through SALC

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Laura and Lee Shaw

Photo: BalfourWalker.com

BizCOUPLE

Dynamic Duo Positive Energy for Diabetes Research By Gabrielle Fimbres As they motored through Texas on a family trip a dozen years ago, Lee and Laura Shaw realized something was terribly wrong with their 22-month-old daughter, Olivia. The usually joyful toddler was crying miserably, and her eyes would glaze over. A trip to urgent care followed by five days in intensive care brought the diagnosis – type 1 diabetes. “Her blood sugar was through the roof and we didn’t know it,” Lee said. “She was close to a coma,” added Laura. The Shaws knew their lives had changed forever. Inspired by Olivia, the couple is dedicated to helping other families cope with type 1 diabetes. Lee is chairman of Father’s Day 122 BizTucson

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Council Tucson, which raises funds for type 1 diabetes education and research through Steele Children’s Research Center at the University of Arizona. Both were involved with Juvenile Diabetes Research Foundation, with the family raising more than $38,000 through the annual walk. Lee, an architect and partner at Ansaldi Shaw Design, and Laura, senior VP for marketing and communications at Tucson Regional Economic Opportunities – or TREO – are committed to making Tucson a better place to live. In addition to raising funds for type 1 diabetes education and research, Lee is Cub Scout den leader for 9-year-old son Will’s troop and the infamous Popcorn Kernel, overseeing fundraising efforts. Laura is a board member for Cata-

lina Foothills School District Foundation, supporting the district her children attend. She serves as a member of the Carondelet Health Network Strategic Planning Committee and the Barber Fund for Civility, Respect and Understanding. She is a governing board member and graduate of Greater Tucson Leadership and was recognized as one of 11 “Ordinary Women Doing Extraordinary Things” by UA’s Eller College of Management. The Shaws fill any room they’re in with their smiles and spirit. “Laura and I spread positive energy wherever we go,” Lee said. “I look at everyone as my friend and that’s how our children are.” Close to their hearts is the work they do regarding type 1 diabetes. “The big drive is to find a cure, but I don’t even think about a cure, to tell you www.BizTucson.com


the truth,” Lee said. “I think about the families who have just been diagnosed and how we can help them.” Dr. Fayez Ghishan, head of the UA Department of Pediatrics, said the Shaws are improving life for people with type 1 diabetes. “Lee and Laura Shaw are examples of parents who were devastated by the news that their daughter Olivia had type 1 diabetes – but they turned it around and decided to make it an opportunity to give back,” Ghishan said. “They are working to make the lives of other children with diabetes better by making our Angel Wing Clinic an even friendlier and more effective place for kids to be treated – and by helping raise funds for research into type 1 diabetes causes and a cure,” Ghishan added. Paul Bonavia, chairman and CEO of Tucson Electric Power and UNS Energy Corp., said he is “knocked out by the Shaws. “If you want to get something done in Tucson, you go to Laura,” he said. “And I have been impressed with Lee in his work with Father’s Day Council. I love people that lead through dedica-

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tion and perseverance.” The Shaws were raised in Dallas, and met at a birthday party at Lee’s New York City loft, where Laura was visiting a friend. They fell in love and married in 1992. They moved to Albuquerque and relocated to Tucson 12 years ago. “We fell in love with Tucson,” Lee said. “I feel like I’m on vacation all the time. I love the outdoor way of life.” “The flip-flop lifestyle,” as Laura calls it. The Shaws built their family here, and put their energy into making their schools and community the best it can be. “The schools are awesome,” Lee said. “It’s a great environment to raise a family.” Said Laura, “Everywhere I go, I run into someone I know and I love it. I love the work I do at TREO trying to make Tucson a better place for future generations.” The couple radiates a positive attitude, despite serious medical challenges. Lee was diagnosed with kidney can-

cer, and successfully underwent a difficult surgery. In 2005, Laura was showing one of Olivia’s teachers how to test blood, using her own. She found she had also developed type 1 diabetes. Once Olivia got the news, she said to her mom, “You’re my soul sister.” Olivia has grown into a beautiful 14-year-old, ready to tackle high school and the world. She loves volleyball, writing and poetry, and looks just like her mom. “We are very close,” Laura said. “We understand each other.” The Shaws say diabetes does not define Olivia. “From the beginning, we didn’t believe she was a diabetic,” Laura said. “She was a child with diabetes.” The Shaws work towards making managing the disease easier. “You never get a break from diabetes, ever,” Lee said. “I know what we are doing is important because diabetes is on the rise and to help people and families with the disease, that’s why I am here.”

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BizINVESTMENT Humberto S. Lopez President, HSL Properties

Trending in Tucson Upscale Rentals

Photo: BalfourWalker.com

By Christy Krueger

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www.BizTucson.com


Photos: BalfourWalker.com

Encantada at River Crossing

The average income is $110,000 at Encantada. They’re renting by choice. It’s the lifestyle they’re looking for. – Humberto

A new, upscale rental community called Encantada Riverside Crossing was recently completed on the near west side, with 304 luxury apartments. Developer Humberto S. Lopez says they are going like hot cakes. Lopez, of HSL Properties, said reaction to the development is a positive sign that this segment of the housing industry is trending upward. Lopez came to Tucson in 1980 with plans to retire. He quickly discovered that retirement wasn’t for him and he returned to buying, selling and developing properties as he had in California. With a keen sense of real estate foresight, his investment decisions are purposefully made. During the 1980s, Lopez built large apartment complexes, but six years later market trends told him to switch gears. “In the early '80s, it was cheaper to build,” he said. When that changed, he began purchasing existing properties. “I got back into development in the last year.” Between those phases, he bought and sold, depending on market shifts. “Apartments were converted to condos in 2005, so the high-end apartment market disappeared.” While some of those projects were successful, others were not, so Lopez jumped at the opportunity to buy at the right price. One investor group paid $12 million for a condominium conversion property and added $8 million in renovations, but couldn’t sell any units. Lopez purchased it for $12 million. He paid $14 million for another complex that conwww.BizTucson.com

S. Lopez, HSL Properties

dominium converters had purchased for $30 million. The home market fell in recent years due to a number of factors, Lopez said. Among them were excess inventory and renters buying homes they couldn’t afford. “What happened, people moved out of apartments into homes. We lost good tenants that shouldn’t have bought a home, but they came back. And a lot were bought by investors. Their homes also went vacant, and at the market collapse, there were too many homes.” Rentals did not experience significant swings during this period. “Apartment occupancies remained about the same. We started making concessions, such as one to two months free, so rental rates dropped,” Lopez stated. “Now concessions are half a month or none. Occupancies at the lowest were 88 percent, now it’s 90 percent.” What has changed, Lopez noted, is the number of people who can afford to buy homes but are opting for upscale rentals with lots of amenities. “The average income is $110,000 at Encantada. They’re renting by choice. It’s the lifestyle they’re looking for.” That includes granite countertops, high ceilings, a resort-like pool, 24-hour fitness center, a theater, dog run and a Starbucks coffee bar. “We’re the first large builder certified by Tucson Electric Power,” Lopez said, with a guaranteed utility rate of $1 per day per unit. Rillito River Park is located right out the door and tenants can check out bicycles at no charge. Monthly rental

rates at the gated community range from $869 to $1,299, and a variety of floor plans are available up to 1,313 square feet. HSL has purchased land at two other sites for the construction of additional luxury apartments. Lopez anticipates Encantada Dove Mountain to break ground this summer and construction to start at Encantada Steam Pump later this year. Lopez said he’s owned and operated approximately 20,000 apartment units over the years. He currently has close to 10,000 units in Arizona, spread out over 40 properties. Thirty of those are in Tucson. While running the business keeps him on his toes, Lopez has always made time for community work. He’s served on numerous boards and chaired several organizations, among them University of Arizona Sarver Heart Center, United Way, 88-Crime, YMCA and UA Foundation. He was recognized as Man of the Year by Tucson Metro Chamber, Business Man of the Year by the Tucson Hispanic Chamber of Commerce and Father of the Year by the Father’s Day Council Tucson. His top achievement, he said, is his family. He’s also developed the HS Lopez Family Foundation. “My wife and I have given millions to charities. My goal is to have most of my estate go to the foundation. Hopefully, the foundation will be around for a long time.”

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BizVISIONARY

We asked Mel Zuckerman to offer advice to others who may be pursuing entrepreneurial visions of their own. Zuckerman shared his reflections with contributing writer Pamela Doherty, as summed up below.

PHOTO: CARTER ALLEN

1. Don’t do anything I did! I had no strategic plan, no grand aspirations, no idea how to do what we wanted to do. So I would say that it is always important to ask all of the right questions to put the pieces together.

Mel Zuckerman Tucson’s Restless Visionary By Pamela Doherty In his autobiography, “The Restless Visionary,’’ Mel Zuckerman recounts his haphazard navigation of personal challenges and professional calamities until age 50, and the defining moments that paved the way for lasting change and the founding of a world-renowned wellness enterprise, Canyon Ranch. Zuckerman, a CPA turned developer, rode the hair-raising ride of the real estate booms and busts of Tucson in the 1960s and '70s. During a significant upswing, Zuckerman was able to capitalize on IBM’s move to town in the late '70s. By the end of that period, he had built 1,200 homes and 400 apartments. Yet, he was unhappy and unhealthy. His turn for the better came about largely because Zuckerman made a determined decision to transform his life. In 1978, Zuckerman and his wife, Enid, formulated the idea for Canyon Ranch in Tucson, a fitness resort that was ultimately established on 42 acres near Sabino Canyon. The project began as “a start-up on a shoe string,” and for the first 10 years, Zuckerman went without a salary. He was steeped in debt, yet confident about the future. “We experimented, followed 126 BizTucson

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our impulses and let trial and error move us along,” Zuckerman wrote. Ultimately, Canyon Ranch became a standout in the spa industry with its earnest focus on health and well-being, and in 1989 expanded to a second location in Lenox, Mass. Ever in motion, Zuckerman continued to take calculated risks to extend the Canyon Ranch brand and advance the mission of promoting healthy lifestyle choices. In 1996, Zuckerman sold Canyon Ranch’s land and assets in Tucson to a real estate investment trust which resulted in an influx of cash and a 50year management contract. By 2005, the REIT deal was restructured to give Zuckerman back 52 percent ownership, and the Canyon Ranch enterprise had additional potential ventures in excess of $4 billion under consideration. The recession hit shortly thereafter and every prospective project fell by the wayside. But Canyon Ranch continues to flourish, and Zuckerman, now 84, does the same. Louisa Kasdon is the co-author of “The Restless Visionary,’’ published by Canyon Ranch Press.

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2. Believe totally in what you are doing. In the beginning, Canyon Ranch was all-consuming and required all hands on deck. I ran the front desk, carried bags, cleared tables. My wife made beds. We did whatever we needed to do because we felt passionate and we knew what was possible. 3. Don’t be deterred by naysayers. You’ll come across people who want to pronounce failure before you’ve even had a shot at it, and bankers who are resistant to providing venture capital to a business that has no track record. I had my reservations sometimes, but Enid never ever doubted that we would be successful. 4. Be prepared to risk it all. This is important especially if you are doing something that has not been done before. We did not have enough capital, nor did we have any mortgage financing. I risked every dime I made in the first 30 years of business. It was a very emotional decision for me. 5. It takes a team to be successful. From the beginning of Canyon Ranch, three other people played major roles and made all the difference: Enid, my true partner and wife of 59 years; Jerry Cohen, my business partner, and Karma Kientzler, the fitness expert who helped inspire my belief system. And from the beginning we hired the very best people we could, built their trust and instilled our passion. Today they are ultimately the ones who deliver the life-changing, healing care at Canyon Ranch. 6. There has to be luck. (Unless you believe in divine providence, and I’m not saying that I don’t.) Of course, we worked really hard to make our own luck. I don’t think the people who have been coming back for 25-plus years do so because of luck. I have to say, as I walk around Canyon Ranch even now, living in paradise every day, I think I outdid myself.


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Back Row (l to r)

Rick Raio, Sales Manager; Todd Wilson, Parts Manager Ernie Buck, Pre-Owned Manager;Ted Lawton, Sales Manager Front Row (l to r)

Michael Famileti, General Manager; Arleyne Bishop, Service Director

PHOTO: CHRIS MOONEY

BizAUTOMOTIVE

Expanded Facility Increases BMW Sales By Christy Krueger A significantly larger facility and a strong team concept are driving the recent success of BMW Tucson, according to Michael Famileti, general manager since November 2010. His employees gave him a warm welcome from the start and, in turn, he dishes out unending praise for them. “I have such an incredible team. Without them we wouldn’t have the success we do. It’s become a family,” he said. That success has been measured in growth and recognition, both inside and outside of Tucson. Since Famileti took the helm, the dealership’s customer satisfaction rating has shot to the top among BMW dealerships in the West. “We’ve risen to the top tier of BMW dealerships nationally in sales and service – and most importantly, the customer service index. This has never happened before with this store,” he said. “We still have more to go but we are on the right track.” BMW Tucson was also nominated as an Automotive News Top 50 dealership. Selections are based on such criteria as happy employees, sales, facility and customer satisfaction, he said. The move to the newly constructed building at on Wetmore Road in December 2011 meant immediate growth. “Our total interior is almost 46,000 square feet on 6.5 acres. 128 BizTucson

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We were on 1.5 acres before (at the TucsonAuto Mall) with less than 20,000 square feet. We went from 14 to 32 service bays and have a car wash on the premises,” said Famileti. He predicts his current staff of 68 will grow to more than 80 in the near future. The extra facility space is making an impact on new car sales, this year tracking up by almost 27 percent over last year, Famileti said. “The available inventory is the only thing holding us back. The good news is help is on the way. Because of the new facility, we get allocated more inventory – but it takes a few months to catch up.” Though the building’s design was mostly dictated by BMW, Famileti took the position of being earth friendly whenever he could. “We played with BMW guidelines and used recycled materials designed for the environment. We’re one of the only auto dealers in Tucson with 100 percent UV windows.” As a result, “we’re getting a Silver LEED award,” from the U.S. Green Building Council. LEED stands for Leadership in Energy and Environmental Design. The force behind BMW Tucson’s recent changes is AutoNation, which three years ago purchased the dealership, then known as Don Mackey BMW. According to Famileti, AutoNawww.BizTucson.com


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Photo: BalfourWalker.com

tion began acquiring new car dealerships 14 years ago and no longer owns used car lots in Tucson. It’s the largest dealer group in the U.S., with more than 250 new car franchises and more than 80 body shops. BMW Tucson is AutoNation’s second new car dealership in the area, after Dobbs Honda, and Famileti said the company is open to expansion. “If the opportunity presents itself in our market, AutoNation would consider an acquisition.” Famileti’s take on car buying trends is that consumers have a pent up demand after being cautious during the recession. “Shoppers now are looking for value even more. Customers ask poignant questions on longevity, fuel economy and costs.” He believes the product he sells stands out in the industry. “I drive a BMW, my wife drives a BMW. It’s for people who enjoy driving. I love the quality and feel. I love the style and looks. The maintenance is included for free (for four years) so the cost of ownership is less. BMW has absolutely positioned itself to be the best premium brand in the world. Last year it was No. 1,” he said.

Being a part of the community is important to Famileti and his team. In fact many of the local charity projects the dealership supports are suggested by employees. They’ve ranged from a golf tournament for the Tucson Alliance for Autism to food and toy drives, plus a fundraising project changing out license plate holders that caught the attention of Auto Nation, which donated to the cause and presented Famileti and his team with the company’s Community Star award.

Famileti spends his free time with family, enjoying museums, art, Formula One racing and hiking. In view of the long hours demanded by his job, he’s become close to his staff and considers them family as well. “I’ve been doing this a long time and I’ve never had such a loyal team as this team and we have so much fun. Even in a serious business, we laugh a lot.”

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BizMEDICINE

Schroeder’s Goal:

Stopping the Spread of Breast Cancer By Eric Swedlund Joyce Schroeder anticipates the day when breast cancer treatments will use a drug that attacks the spread of tumors without harming the surrounding cells. With a novel treatment that accomplishes just that in preclinical tests, the Arizona Cancer Center biologist received a patent in 2010 and formed a biopharmaceutical company to guide her drug through clinical trials to the market. “For most cancer biologists, myself included, your ultimate goal is to find a way to impact the disease,’’ Schroeder says. “You’re always thinking about the patient and what they’re going through and how you can take what you’ve learned and make a meaningful impact on their lives.” Schroeder’s research focuses on receptors and the difference between normal cell activity and the abnormalities that lead to cancer. The drug her lab developed puts a control mechanism back in place so cells will behave normally. Schroeder’s company, Arizona Cancer Therapeutics, which opened in May 2011, is working to secure financing for clinical trials of the drug PMIP, which stands for Protein Transduction Domain 4, MUC1 Inhibitory Peptide. The FDA approval process will require a multi-million-dollar commitment. Schroeder is hoping to have Phase 1 clinical trials of PMIP running within two years and to see her drug working as well in humans as it’s proven itself in mice within five years. About 200,000 new cases of breast cancer are diagnosed in the U.S. each year and about 40,000 women die from the disease annually, mostly from the cancer spreading to other parts of the body. Schroeder’s drug is designed to halt the metastasis by targeting a specific protein, which is overexpressed in more than 90 130 BizTucson

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percent of breast cancer patients. Blocking this progression restores normal protein activity in the cells, halting the spread of a tumor. Schroeder’s research team is also investigating whether the success in targeting breast cancer could be applied to cancer in other types of duct tissue, like colon, lung and pancreas. In the course of her studies as an undergraduate at the University of Arizona and doctoral student in microbiology and immunology at the University of North Carolina, Schroeder narrowed her scientific interest from diseases in general to a very specific subset of breast cancer patients. “I started working in the field at a good time,” she said. “There were good models being developed in the 1990s that gave us tools to understand what causes cancer and that drew me in. Cancer cells are unbelievably effective at evading what we throw at them. The realization that this may work was incredibly exciting.” In February, Schroeder’s company received a $7,500 grant from the Arizona Commerce Authority, seed money to help prepare grant applications, like the Small Business Technology Transfer grant at the National Institutes of Health that Arizona Cancer Therapeutics applied for in April. Going from the lab to the business world has been a steady learning curve for Schroeder and her husband and business manager Todd Camenisch, an associate professor in the UA College of Pharmacy. While she may have been reluctant to form a company at first, Schroeder said it’s the fastest way to get her drug to market. “When we developed this drug, the day I got the first results from our model that it’s working was one of those amazing moments when your dreams come into your reality,” she said.

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PHOTO: CARTER ALLEN

Joyce Schroeder Founder, Arizona Cancer Therapeutics


BizBRIEF

Harry George, Four Others Receive Honorary UA Degrees (L to R) Harry George, UA Eller College Dean Len Jessup, UA President Eugene Sander

By David Pittman

The University of Arizona awarded honorary degrees to entrepreneur and venture capitalist Harry A. George and four other outstanding leaders during a commencement ceremony for master’s and doctoral students at McKale Center in May. George, who has nearly 40 years of experience in creating, operating and investing in successful rapid-growth technology companies, received an honorary Doctor of Science degree from the UA Eller College of Management. He has worked as a director of 26 public and private companies and is currently director and chairman of High Throughput Genomics. He is among the founders of Tucson’s Desert Angels and has been active with the Arizona Venture Capital Conference, now known as Invest SW. In 1995, he co-founded Solstice Capital, a venture capital fund that invests in early-stage life science and technology firms. Solstice Capital has invested tens of millions of dollars in 44 companies since its inception. From 1981 to 1989, George was involved as co-founder, director and VP for Interleaf, a pioneer business in the field of electronic publishing. In January 2000, Interleaf, valued at about $1 billion at the time, was absorbed by Broadvision. Prior to his involvement in Interleaf, George was a co-found-

er, director and VP for Kurzweil Computer Products, which was purchased by Xerox Imaging Systems in 1980. In addition to George, the following were recognized with honorary degrees: • Sergio Assad, a world-renowned classical guitarist, composer and teacher who has significantly impacted modern classical guitar. • Emily Meschter, who after a successful career in finance on Wall Street, has built a distinguished record as a philanthropist and supporter of education in Southern Arizona. The Emily Meschter Early Learning Center in Flowing Wells Unified School District is dedicated to Meschter for her contributions. • Brian P. Schmidt, a UA alumnus and distinguished professor and laureate fellow at Australian National University, who won a Nobel Prize in Physics in 2011 for his work measuring the change in the rate of expansion of the universe. • Margaret Wilch, a UA master’s degree graduate who worked as a biology teacher at Tucson High Magnet School for 20 years. Among her accomplishments was teaching honors research methods, a year-long course in which students did authentic scientific research, often in UA labs.

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PHOTO: CARTER ALLEN

BizMEDICINE

Dr. Steven Wool, Founder, Personalized Health Care of Tucson

New Patient Model Based on Old-Time Medicine By Gabrielle Fimbres As a young child, Dr. Steven Wool tagged along with his dad as the Illinois physician made house calls and tended to his patients. “He was a practitioner in the oldtime tradition,” Wool said of his father, Dr. Frohman “Buddy” Wool, now 91. “He practiced ’til age 78, and talked medicine until he was 85.” Inspired by the personal touch his father brought to the profession, Wool attended Duke University School of

Medicine and settled in Tucson in 1980 for residencies in family practice and internal medicine. After working in practices small and large, Wool has returned to the model he saw first-hand in his childhood – when a doctor had time to get to know patients. In September 2011, Wool started Personalized Health Care of Tucson. In what he calls retainer medicine, patients pay an annual fee of $1,500 for

individuals and $2,500 per couple. The fee includes an extensive annual physical, access to the doctor’s cell phone number, occasional house calls – yes, house calls – shorter wait times for appointments and expedited referrals. Also included are access to a nutritionist, psychologist, physical trainer, office fitness facility, monthly health and wellness classes and more. Instead of racing through patient visits, Wool’s appointments last 30 min-

Cindy Wool Memorial Seminar on Humanism in Medicine Following the death of his wife Cindy, Dr. Steven Wool wanted to do something to make the journey easier for other families and patients experiencing illness. Wool said humanism on the part of medical caregivers is a critical part of the process. “The importance of physician empathy for patients and their families is significant,” Wool said. “We all have power to help.” Following Cindy’s death in 2008 from complica132 BizTucson

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tions from leukemia, Wool created the Cindy Wool Memorial Seminar on Humanism in Medicine. The organization has sponsored three lectures, with support from the Maimonides Society of the Jewish Federation of Southern Arizona in conjunction with the University of Arizona College of Medicine. “We are educating young physicians on applying humanistic skills in their daily practice, helping patients deal with illness better,” Wool said. www.BizTucson.com


utes. He knows his patients and understands their health issues. “By having more time with patients you can take care of chronic problems,” said Wool, who has cared for many of his patients for numerous years. The model provides an opportunity to educate patients about prevention. Wool, an avid cyclist, stresses the importance of exercise and good nutrition. He said he is fortunate to have witnessed great changes in medicine, including the development of life-saving drugs and technological advancements. With advancement, however, the role of the primary care physician has changed. “The role of family practice is defined by insurance companies, and insurance involvement in health care has risen exponentially,” Wool said. “Physicians have a responsibility to the patient to treat and provide care and they have a responsibility to the insurance company to be cost effective,” he added. “Sometimes those responsibilities are at odds. The physician’s role has become gatekeeper for the insurance company.”

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Patients want to have closer relationships with their physicians. Hopefully I can create that.

– Dr. Steven Wool, Founder, Personalized Health Care of Tucson

The move was also born from personal family tragedy. Wool and his daughters, Rachel, Sonya and Lily, lost their beloved wife and mother, Cindy Wool, on Nov. 30, 2008, from complications from leukemia. During the devastating experience, Wool noticed a lack of humanism in some of the care providers, with one telling him to “chill” as his wife was in the last weeks of her battle. That experience convinced Wool to seek a different model. Giving up the big practice and work-

ing as a sole practitioner who knows his patients is invigorating for Wool, whose cell phone buzzes regularly with texts from patients. “It has given me back the same passion I had when I went into medicine, emulating what my father did,” said Wool, who keeps his dad’s old physician’s bag in his office. “It has allowed me to practice in a way I enjoy.” Wool is one of about eight Tucson physicians to make the switch to personalized health care. One, Dr. Susan Dixon, covers for him if he is out of town. “This is not care that is elitist,” Wool said. “This type of care is helpful for patients who are more chronically ill. Patients like it because they have greater access.” Other patients without chronic health issues appreciate the personal care, with an annual fee that is the equivalent of about a latte a day. “Patients want to have closer relationships with their physicians,” Wool said. “Hopefully I can create that.”

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PHOTO: CARTER ALLEN

BizMILESTONE

(Back row from left) Don Radakovich, Rudy Paredes, Tariq Khan (Front row from left) Phil Dalrymple, Tom Furrier

70 Years in the Numbers Game By David B. Pittman What do R&A CPAs in Tucson and the Royal & Ancient Golf Club of St. Andrews in Scotland have in common? Well, not only do both share the initials R&A, but both can also boast of history, tradition and endurance. OK, R&A CPAs cannot match the more than 250-year lineage of the R&A of St. Andrews. However, the roots of the Tucson accounting firm can be traced back 70 years – which by Southern Arizona business standards is a near eternity. In 1942, the year R&A CPAs was founded as Aaron Paul & Company, Franklin D. Roosevelt was president of the United States, Joe Louis was heavyweight champion of the world, Glenn Miller received the first-ever gold disc for selling 1 million copies of “Chattanooga Choo Choo” and Anne Frank began writing her diary. The population of Tucson seven decades ago was about 38,000. Restaurants, movie houses and stores of all kinds were thriving in downtown Tucson, while Country Club Road was considered the Old Pueblo’s far east side. 134 BizTucson

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Aaron Paul started his Southern Arizona accounting business as soon as he graduated from the University of Arizona. His first client was Sam Marcus of Marcus Mercantile in Nogales. Significant Tucson accounts soon followed. Don Radakovich joined Aaron Paul & Co. in 1967 as a junior accountant making $500 a month. When Radakovich came on board, Paul had just moved the firm to a new downtown building at 259 N. Meyer Ave., which today is home to the law firm of Mesch, Clark & Rothschild. After Paul’s death in 1970, the firm merged with Elmer Fox & Co., a large national firm based in Wichita, Kan. That same year, Henry Amado came on board as a tax manager. Radakovich and Amado became partners in the firm in 1972 and 1974, respectively. In 1982, Radakovich became partner in charge of the firm’s Tucson office. In the mid-1980s, Elmer Fox & Co. was gobbled up by Grant Thornton, a global giant headquartered in Chicago. However, Grant Thornton’s stay in Tucson was short lived. www.BizTucson.com


“Grant Thornton specialized in selling management services,” Radakovich said. “The Tucson market at that time was proprietary. We served many high-net-worth people, who owned businesses, and we did just about everything for them personally from an accounting perspective, but they just didn’t need a lot of sophisticated management services work. As a result, Grant Thornton quickly lost interest in the Tucson marketplace.” In 1986, the partners acquired the firm from Grant Thornton and it once again became a Tucson-owned business operating as Radakovich and Amado. The partners at that time were Radakovich, Amado, Greg Anderson, Jeff Stephenson and Charlie Charvoz. “We had to pay them (Grant Thornton) for clients we had brought in over two decades,” Radakovich said. “We started off as Radakovich and Amado, but every young partner we brought in wanted his name on the door. It didn’t take long before we needed a whole page for all the partners’ names. That’s when we decided to shorten it to R&A CPAs.” Throughout the 1970s and 1980s, the firm operated out of several locations, all of which were in downtown Tucson. In 1989, the business moved to its present site at 4542 E. Camp Lowell Drive. Today, the partners of R&A CPAs are Radakovich, Tom Furrier, Tariq Khan, Phil Dalrymple and Rudy Paredes. With 35 employees, R&A is among the largest accounting firms in Tucson. R&A CPAs reflects old-school business practices, such as

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the value of building long-lasting and meaningful business relationships with clients. “We often tell our clients that we want their hat, so we can put it on and better understand what they’re all about,” said Radakovich. “It isn’t really their hat we want, it’s their trust. We need to know what they do, how they feel and what they want so that we are in a position to utilize the expertise we have and say, ‘if I were you, this is what I would do.’ ” While most clients first come to the firm for a basic service, such as a tax return or a financial statement, the relationship often grows and strengthens over time. Many long-term clients speak to R&A accountants about their investment returns, spending patterns, charitable activities, educational goals and insurance needs. The accountants at R&A often become trusted business advisors. R&A is also on the cutting edge of the industry. In addition to traditional accounting services – such as taxes, auditing and business consulting – R&A also offers services including forensic accounting, federal acquisition regulations compliance, international taxation and its new Integrated Business System Division tailored to small business owners. Now celebrating its 70th anniversary, the Tucson accounting firm that has operated under many incarnations has been characterized by constant development. “Today our firm is known as R&A CPAs and we’re just getting started,” Radakovich said. “Just like the beach at the ocean – we are always there, but ever changing.”

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Parts shown are among more than 70 supplied by Sargent Aerospace & Defense for use in manufacturing the F-35.

Business Leaders Support Bringing F-35 to Tucson

ILLUSTRATION: COURTESY SARGENT AEROSPACE & DEFENSE

BizAEROSPACE

By David B. Pittman Lockheed Martin officials descended upon Sargent Aerospace & Defense in Marana recently to demonstrate the capabilities of the F-35 Lightning II, which is described as the world’s most advanced military fighter aircraft. They were greeted by an enthusiastic audience of Sargent employees, elected officials, political hopefuls, business leaders and news reporters, many of whom took the opportunity to get behind the controls inside the cockpit of an F-35 flight simulator. Lockheed Martin, a leading global security and aerospace contractor based in Bethesda, Md., brought it’s “road show” to Marana and to Sargent, a leading supplier for the F-35 project. Sargent is designing and manufacturing more than 70 flight-critical components for the supersonic aircraft, including hydraulic valves and actuators, structural pins, specialty bearings and pneumatic sealing devices. “Sargent Aerospace & Defense designs and those of our other Arizona suppliers are critical to the F-35 program, so it is important that they have an opportunity to experience this multi-role fighter’s superior performance capabilities,” said Bob Rubino, director of the U.S. Navy F-35 Program for Lockheed Martin. “The F-35 program will serve as the cornerstone of global security and will significantly impact the U.S. economy for many years to come.” As the first F-35s are moving off the assembly line and being flight tested, there has been vociferous debate about where the new planes should be stationed. Tucson opponents of the F-35 complain that increased noise levels, vibration and flight danger posed by the new aircraft make it unsuitable for deployment in Tucson. 136 BizTucson

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Support of the Business Community

The F-35, however, has the strong support of the Tucson business community. The aircraft has the backing of both the Tucson Metro Chamber and the Southern Arizona Leadership Council, which claim it would be disastrous to the local economy if F-35 training is not undertaken in Tucson. “The 162nd Fighter Wing is the International F-16 Training Center for the U.S. Air Force,” said Ron Shoopman, president and CEO of SALC and a retired brigadier general who formerly commanded the 162nd Fighter Wing. “If the F-35 doesn’t come to the Air National Guard at TIA, the entire wing is in jeopardy of being shut down,’’ Shoopman said. “It is critical we do everything we can to get the Air Force to assign the F-35 to the 162nd Fighter Wing.” The 162nd Fighter Wing employs 1,450 people and is Southern Arizona’s 37th largest employer. The economic impact of the 162nd Fighter Wing is estimated to be between $280 million and $325 million annually. Michael Varney, president and CEO of Tucson Metro Chamber, noted that the aerospace and defense industry in Southern Arizona represents more than 20 companies providing in excess of $5 billion in annual revenues. “We are trying to grow the aerospace and defense industry in Southern Arizona,” Varney said. “Having the F-35 here is a critical component of the future of that entire industry.” Proponents of the F-35 say design and early manufacture of the aircraft is already boosting the economy. With 17 Arizona suppliers, the F-35 program supports more than 1,100 direct and indirect jobs and more than $91 million in ecowww.BizTucson.com


The F-35 program will serve as the cornerstone of global security and will significantly impact the U.S. economy for many years to come. – Bob Rubino Director, U.S. Navy F-35 Program Lockheed Martin

nomic impact across the state. Nationally, the F-35 program has suppliers in 45 states and provides more than 140,000 direct and indirect jobs. These employment and economic impact numbers will undergo huge increases as the program moves from its initial stages into full-rate production. “We believe the F-35 will strengthen our military, the economy and, most importantly, our local economy,” said Scott Still, Sargent’s president. What Critics Say

Opponents say the “short-term benefits’’ of the F-35 don’t outweigh the long-term cost to the environment. “It makes no sense to base the loudest, most powerful, unproven fighter jet at a commercial airport, already a designated Superfund site, surrounded by the densely populated cities of Tucson and South Tucson,” said a letter to the mayor and Tucson City Council from Tucson Forward and the Arizona Center for Law in the Public Interest, two groups opposed to deployment of the F-35 in Tucson. Rubino, however, provided global security and economic justification for the F-35 during his visit to Sargent. He said emerging battlefield threats are making current military fighter jets obsolete. One of those threats is surface-to-air missiles, which he said are becoming extremely sophisticated and are increasingly being used to deny access to critically important air space. Rubino said the F-35 can penetrate even missile-guarded air spaces because it has stealth capability. Keeping Troops Safe

The F-35’s shape, embedded antennas, aligned edges, internal weapons and fuel, and special coatings all contribute to the aircraft’s stealth capability. “The F-35 is an information sponge,” Rubino added. “It absorbs and sees everything that is going on around the aircraft in the battle-space environment. And that’s important because it helps the pilot, our men and women in uniform, to have better situational awareness of what is going on around them so they can better execute their mission and have better survivability.” When it comes to establishing air superiority during wartime, most Americans want the United States to have a clearcut technological advantage, which is what the F-35 provides, Rubino said. continued on page 138 >>> www.BizTucson.com

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BizAEROSPACE continued from page 137 “In the last 60 years, we have not lost any ground troops to enemy aircraft because of our air superiority and our air dominance,” he said. “That is directly attributable to the U.S. services efforts to continually modernize the fleet and get the greatest capabilities possible.” Rubino said DOD officials have insisted the F-35 must be affordable. One way that is being accomplished, he said, is by making the F-35 the jet fighter of choice for the Navy, the Marine Corps and the Air Force, rather than having a different aircraft for each service. The F-35 utilizes three designs to accommodate the different methods of landing and taking off used by the military services. Production Ramping Up

The F-35 is already being built, but not in the numbers that will eventually be reached when the aircraft reaches full-rate production in six or seven years. Currently, 153 aircraft have been appropriated. The first 11 production jets have been delivered to the Marine Corps and the Air Force. The United Kingdom and the Netherlands became the first of 10 U.S. allies expected to purchase the F-35. “We are at a low-rate of production right now,” Rubino said. “We are building three aircraft per month. By the end of the year we will be building four aircraft per month. At the end of six to seven years, we will be up to 18 to 20 aircraft per month – and that is when you get to your economies of scale. That equates to one aircraft coming out of the factory door every working day. That is where we need to get.” When the F-35 reaches full production, Rubino said, it will cost about the same to build as the aircraft it is replacing. Still said the F-35 program is the reason Sargent’s 70,000-square-foot building just west of Interstate 10 in Marana was built. “We built this because of the JSF (Joint Strike Fighter) and the future business that is out there for our company and our employees,” Still said. “We are growing and we are hiring good aerospace employees for high-paying jobs.” Marana Key in Sargent Expansion

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expansion possible. “The Town of Marana’s dedication to keep Sargent here and help us expand has been vital,” he said. Before becoming the first at the Marana event to hop into the F-35 cockpit simulator, Honea, a U.S. Navy veteran, said Sargent not only “creates wealth in the region that passes through our school districts, our fire districts and the town, but it also brings our friends and neighbors here and gives them a place to work doing something that is really of benefit to our community.” Honea said it is important that Southern Arizonans support the F-35 and the aircraft’s deployment to TIA. “Bringing the F-35 here is important because it would create jobs and put wealth in our community,’’ he said. Tucson Mayor Jonathan Rothschild and the Tucson City Council have yet to take a position on the issue – which is a sore spot among Tucson business leaders backing the F-35 at TIA. “Our country, our city and Tucson International Airport all need the F-35 and the 162nd Fighter Wing,” said Bill Valenzuela, owner of W.G. Valenzuela Drywall and the state chairman emeritus for the National Committee of Employer Support of the Guard and Reserve. “Takeoffs and landings by the 162nd Fighter Wing are included with local commercial air traffic at TIA in determining the amount of funds allocated by the federal government for airport improvements,’’ he said. Varney said that if the F-35 is deployed for flight training by the 162nd Fighter Wing, it would result in an infusion of more than $175 million in federal construction dollars at TIA to make improvements in preparation for F-35 flights. He said that would create 1,800 to 2,100 new jobs. Despite vociferous opposition to the F-35 at three public hearings regarding the possible deployment of the aircraft in Tucson, both Valenzuela and Varney maintain the vast majority of Tucsonans support the F-35 and the aircraft’s deployment at TIA. Varney said that if sentiments at the three public meetings are any indication, “there is widespread community support for the F-35, including (among) residents currently living or working in the flight paths at TIA.”

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BizJOBS

Pharmacy Customer Service Facility Creating 400 Jobs David B. Pittman UnitedHealth Group is bringing 400 jobs to Tucson with the creation of a new pharmacy benefits customer service center. OptumRx will hire new employees over the next year to 18 months. The new OptumRx office, in the University of Arizona Science and Technology Park, is undergoing renovation, and is expected to be ready for occupancy by mid-year. Recruitment of new customer service representatives is expected to begin later this year. OptumRx – one of the Optum companies of UnitedHealth Group – is the fourth-largest pharmacy benefits manager in the United States. The company processes nearly 370 million adjusted retail, mail service and specialty drug prescriptions annually. “We are strengthening the infrastructure of OptumRx in advance of a major expansion early next year, and we especially appreciate the help and support that comes from the outstanding workers and leaders of Arizona in that effort,’’ said Larry C. Renfro, executive VP of UnitedHealth Group and CEO of Optum. “I am pleased that Optum and UnitedHealth Group recognize Tucson’s high-quality workforce and Arizona’s excellent

PHOTO: CHANCE AGRELLA

Dirk McMahon CEO, OptumRx

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business climate.’’ “The hundreds of jobs Optum will create here over the coming months show that Arizona is a premier destination for the growth of innovative businesses such as Optum,’’ Arizona Gov. Jan Brewer said of the announcement. In addition to customer service positions, the company will hire for positions involving training, workforce management and quality management. The company expects the facility, which will serve millions of additional UnitedHealthcare employer and individual health plan participants, to be fully staffed by the end of 2013. “The technology at this facility, along with the commitment and know-how of our employees here, will help us fulfill our mission of making the health care system work better for everybody,” said Dirk McMahon, CEO of OptumRx. “An aging population and more people gaining access to health insurance mean more Americans will be using more prescription drugs, so the importance of our Tucson employees to our business will only increase,” he added.

Biz

Graybar Builds $4 Million Facility By David B. Pittman Graybar, a Fortune 500 company with more than 7,400 employees and 240 locations in North America, opened its first-ever facility built to LEED specifications – in Tucson. Graybar, a leading distributor of electrical communications and data networking products and related supply chain services, broke ground on its new 55,000-square-foot $4 million office and warehouse facility in September 2011. The company had a ribbon-cutting celebration opening the new structure in May. Graybar’s new Tucson branch features many of the green technologies it distributes to its customers. For instance, the new facility has an array of solar panels on its roof, energyefficient lighting and electric vehicle charging stations. The company also furnished the building with furniture made from recycled materials. “We hope this facility serves as a shining example of sustainable and green practices within commercial properties throughout the state,” said Craig Mead, Graybar’s district VP from Phoenix. LEED stands for Leadership in Energy and Environmental Design. Graybar officials are working to secure, and are confident they will receive, LEED Silver certification for their new Tucson building from the U.S. Green Building Council, which typically waits several months after a business is occupied before issuing certification. Larry Giglio, senior VP of operations based at Graybar’s St. Louis headquarters, said Graybar has “a deep passion and commitment for sustainability,” which the company demonstrates by “being responsible stewards of our resources, rewww.BizTucson.com


ducing our impacts on the environment and providing sustainable solutions for our customers.” “Since 2007, we have completed over 100 lighting retrofits in our facilities and reduced annual electricity usage by an estimated 19 percent,” he said. Graybar operated for the last 25 years at a building on Cherrybell Stravenue that is less than half the size of its new facility. Steve Gosciminski, Graybar Tucson branch manager, said Graybar will sell the old building. He said the move was necessitated by growth in the company’s Tucson business. Gosciminski said Tucson Regional Economic Opportunities was “a great resource for Graybar” throughout the planning and construction of the structure. Joe Snell, president and CEO of TREO, was on hand for Graybar’s ribbon-cutting ceremony. “We are projecting an economic impact of more than $15 million over the next three years as a result of this facility,” Snell said. “I know our elected officials have to be grinning about this because it is operations like this that fill the tax coffers.” Snell thanked Graybar for its “continued investment” in Tucson. “We know from working with you that you could have chosen a lot of places to do this,” he said. “We are thankful you chose to keep reinvesting in Tucson, Arizona.” Other dignitaries who attended the Graybar grand opening were Secretary of State Ken Bennett; Michael Varney, president and CEO of the Tucson Metropolitan Chamber, and State Sen. Linda Lopez, D-Tucson, whose district includes the property where Graybar’s new facility was built. Graybar was founded in 1869. It has been doing business in Arizona since 1935 and in Tucson since 1958. The company has 37 employees in Tucson. Graybar is engaged in the distribution of electrical and communications products and integrated supply services primarily to contractors, industrial plants, telephone companies, power utilities and commercial users. All products Graybar sells are purchased from others. Biz

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Multinational Company Produces Cleaner, Greener Energy By Gabrielle Fimbres A multinational solar company has joined the Solar Zone at the University of Arizona Science and Technology Park, providing highly-efficient technology at a lower cost. AstroSol has expanded its United States presence with the move, bringing a new solar application to the Solar Zone. Working with Astronergy module manufacturer, the technology provides for greater conversion efficiency using fewer raw materials and less energy. “We literarily hit the ground running,” said Carlos Mayer, COO of AstroSol and managing owner of the Tennessee partner vis solis. “This was possible because of the great relationship Astronergy had built with the Tech Park, Tucson Electric Power, North American Development Bank and other stakeholders of the project.” The 38.5-acre photovoltaic facility uses thin-film, amorphous silicon modules mounted on a fixed-tilt racking structure to generate 6.1 megawatts of clean solar power. With the industry`s average conversion efficiency between 6 and 8 percent, the 9 percent conversion efficiency of the thin film makes it highly competitive for use in large-scale applications, according to the company..

AstrolSol is a wholly owned subsidiary of Solmotion GmbH, a German solar developer. Astronergy, a Chinese solar manufacturer of the CHINT Group Company, is one of the major shareholders in Solmotion GmbH and in the solar project. Solar panels are mounted on racking structures produced in Tucson by Schletter. The installation was constructed by Tucson’s Barker Morrissey Contracting. Power generated from the facility will be sold to TEP and provided to TEP customers through a 20-year purchase power agreement. AstroSol expects the project to displace over 7,700 metric tons of carbon dioxide and provide enough electricity for about 1,000 homes per year. With more than 25 megawatts of solar generation online already, TEP expects to expand that capacity to more than 200 megawatts by the end of 2014. “AstroSol’s array will produce clean, green energy for our customers using one of Arizona’s greatest natural resources – sunshine,” said David Hutchens, president of TEP and its parent company, UNS Energy Corp.

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2012 Cornerstone Award Winners

BizAWARDS

Cornerstone Building Foundation Awards By Sarah Burton The 18th annual Cornerstone Building Foundation presented nine awards to local members of the construction trade. The idea behind the awards is to honor a “dream team” within the industry each year, including general contractors, architects, designers, professionals, suppliers and subcontractors. More than 300 members of the industry attended the Cornerstone Awards event at Tucson Convention Center, sponsored by Southwest Gas, HenselPhelps General Contractors and BizTucson magazine.

The Cornerstone Building Foundation seeks to bring together members of building and construction related industries, as well as raise funds for scholarships and education in the design and construction fields. Since 1999 the organization has donated more than $100,000 to scholarships and collaborative programs. In 1994 the dean of the College of Architecture at the University of Arizona, Robert Hershberger, brought together the Southern Arizona chapters of the American Institute of Architects and the Arizona Builders Alliance, form-

ing the nonprofit Cornerstone Building Foundation. The group was later joined by the American Council of Engineering Companies of Arizona, Society for Design Administration, Southern Arizona Architects & Engineers Marketing Association, Construction Specifications Institute and the National Association of Women in Construction. Members of each of these groups, as well as corporate sponsor Southwest Gas, comprise the foundation’s board of directors.

PHOTOS: KRIS HANNING

Architect of the Year Swaim Associates

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Edward Marley

Phillip Swaim

Mark Bollard

Kevin Barber

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This innovative firm started by Robert Swaim continues its dedication to innovation while remaining true to the landscape and traditions of the Southwest for public buildings, commercial spaces, centers for health care and education, as well as custom homes. The firm’s award-winning team includes its three principals – Mark Bollard, Edward Marley and Phillip Swaim – plus associate principal Kevin Barber. A sampling of current projects includes exterior modifications to St. Mary’s Hospital, several remodel projects for the University of Arizona Medical Center’s various campuses and a 30,000-square-foot new LEED-designed building for Marana Health Center. LEED stands for Leadership in Energy and Environmental Design, a certification program of the U.S. Green Building Council.

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General Contractor of the Year (projects in excess of $2 million)

CORE Construction Services of Arizona

PHOTOS: KRIS HANNING

With LEED Platinum projects including UA Likins Hall and Arbol de Vida residential hall, and earlier the Integrated Learning Center set underground in the campus mall, this firm takes innovation in construction seriously, working with developers, design professionals, subcontractors and suppliers. The firm also values sustainable practices and construction, as a member of the U.S. Green Building Council and with 18 LEED-accredited staff. The company recently completed a remodel of the Arizona State University Student Union in 104 days. The building received LEED Gold certification. Fred Knapp is VP of CORE.

Donovan Kelly

Lynn Catalfamo

Eric Jacobson

General Contractor of the Year (projects under $2 million) Division II Construction Company

Since 1982, Division II Construction Company has remained committed to providing excellent service and innovative plans to clients. Led by General Manager and Senior VP Lynn Catalfamo, owners Dennis Cole and Robert Kline, and VPs Eric Jacobson and Debi McCarthy, some of the company’s recently completed works include Marana Marketplace, the UA McKale Center corridor graphics and the men’s basketball locker room, upgrades to the Bear Canyon Shopping Center and a remodel of the Arizona Health Science Center’s Department of Medicine.

Scott Rathbun

Design Consultant of the Year Kelly, Wright & Associates

Owner of the Year Tucson Electric Power/UNS Energy Corp.

Kelly, Wright & Associates, a consulting mechanical engineering firm, creates design solutions in the building process for HVAC, plumbing and fire protection for commercial buildings such as the Marana Municipal Complex, UA Poetry Center, Tohono O’odham Museum and Mountain View High School. Projects range from fire sprinkler systems and retrofit plumbing to multisystem and multi-story plumbing. Principals Buzz Wright, Donovan Kelly and Burt Wright have worked on many sustainable strategies and designs, and several members of the firm are currently seeking to become LEED Accredited Professionals.

As a subsidiary of UNS Energy, TEP provides power to more than 402,000 customers in Arizona, while secondary subsidiary UniSource Energy Services provides power and natural gas to more than 237,000 others in 30 communities across the state. As part of their commitment to the areas they serve, employees donate tens of thousands of hours volunteering for the company’s Community Action Team. The companies promote clean, sustainable resources and focus on the efficient use of energy. Scott Rathbun is director of corporate facilities and security.

Susan Mulholland Professional Service of the Year Mulholland Art & Design Commercial Interiors

Principal interior designer Susan Mulholland began Mulholland Art & Design Commercial Interiors in 1999 with a commitment to transforming the work spaces of her clients. With strengths in design consultation, space planning, lighting, window coverings, color and finishes selection, as well as custom furniture design, she continues creating spaces that are equally strong in functionality and aesthetics. Previous projects include Cascades of Tucson, Sierra of Tucson, the Better Business Bureau and Sunflower Village Center.

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2012 Cornerstone Award Winners

PHOTOS: KRIS HANNING

Fred Knapp


Preston Achilles

Supplier of the Year Dunn-Edwards Paints

Subcontractor of the Year Achilles Air Conditioning Systems

As one of the largest employee-owned manufacturers of paint in the Southwest, it makes sense that Dunn-Edwards is the go-to supplier for members of the building and design trades, as well as homeowners. Although it began as a wallpaper store in 1925, the company now has stores throughout the region, with 90 percent of its products used by painting professionals and contractors. Dunn-Edwards Paints is widely seen as one of the greenest paint manufacturers on the market. Sam Samaniego is architectural representative with the firm.

With more than 30 years in the business in Southern Arizona, Achilles Air Conditioning Systems specializes in commercial mechanical systems, working not only in HVAC but also renovation and new construction projects, sheet metal fabrication, maintenance and preventative work, and both fabrication and installation. The services offered by this family-owned company headed by Prestin Achilles cover the spectrum, from small home offices to large businesses.

PHOTOS: KRIS HANNING

2012 Cornerstone Award Winners

Sam Samaniego

John Nyman Jerry Wyatt Community Service Award John Nyman Concord General Contracting

President of Concord General Contractingâ&#x20AC;&#x2122;s Tucson office, John Nyman is the third recipient of the Jerry Wyatt Community Service Award. The award was created in 2011 to honor Jerry Wyatt, a widely respected figure in the Southern Arizona construction community, and to celebrate individuals who continue to improve and support this regionâ&#x20AC;&#x2122;s construction industry as he did. Nyman has been with Concord since 1993 when he came on as a project manager. Ten years later his exemplary work led to his being named company president.

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Photo: BalfourWalker.com

BizGOVERNMENT

Jonathon Rothschild Mayor, City of Tucson

Mayor’s Work Plan Update By Pamela Doherty

Tucson Mayor Jonathan Rothschild developed a 180-day work plan when he was running for office last year to outline his focus for the first six months on the job if elected. The plan organized priorities into four categories: • Jobs and economic development • Safe, vital neighborhoods • Open government initiative • Environmental leadership

As the target completion date for the work plan approaches at the end of June, the mayor provided BizTucson with an update that highlights a few issues most closely aligned with the business community. Rothschild will issue a final report and a new, extended plan in the coming months. Small Business Advocate: “On my first day as mayor, I

hired Maricela Solis, former executive director of the Tucson Hispanic Chamber of Commerce, as the small business advocate. Maricela has accompanied me on multiple business roundtables and has met individually with many business owners, troubleshooting on their behalf with city departments and steering them toward available resources.’’

Land Use Code: “We have reduced the city’s voluminous

land use code by almost 200 pages by eliminating ambiguities and conflicts and turning it into a user-friendly document. We expect to review more draft modifications later this month.’’

Combo Inspections: “The city is currently using crosstrained building inspectors to conduct routine building inspections. This means one inspector is assigned to a project instead of multiple inspectors for electrical, plumbing and structure, etc. This saves home and business owners time and saves taxpayers money.’’

Mayor-Business Roundtables: “I have held multiple business roundtables throughout town with various groups, including the chambers of commerce, women’s, minority and small business groups and others.’’ Recruitment, Retention and Entrepreneurship: “I have met with many local business owners and with employers who are thinking of relocating to Tucson, and I have also met with organizations that help entrepreneurs. They appreciate the attention they’re receiving from the city and I appreciate the feedback I can pass along to staff.’’

Tucson Trade Initiative: I’m setting up a Mayor’s Advisory Council to help drive federal, state and local policies that support international trade.

Biz

Rothschild’s First 180 Days By Pamela Doherty After nearly 180 days in office, Tucson Mayor Jonathan Rothschild has learned more than a few things about this so called “parttime” job. “Before I was elected I said I would never cut a ribbon, but a big part of the job is about ceremony, as well as communication, in addition to the substantive work we as mayor and council have to www.BizTucson.com

do,’’ he said. He sees the Tucson City Council working together to build consensus. “We have different points of view, but I’ve seen that it’s not difficult to get people to stay constructive. Even when we tackled the issue of the University Overlay District, which eventually passed with a 7-0 vote, we were never in a deadlock.’’

Rothschild said he meets frequently with employees in different city departments. “I’ve got two words: public service. No one is in it for the money.” The mayor’s part-time position is really a 14-hour-a-day job, he said. “When you hold this office, you had better love it.’’

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BizTOOLKIT JOBS Act Creates Opportunities for Southern Arizona Entrepreneurs By Nick Jensen

The JOBS Act, signed into law on April 5, will make it easier for Southern Arizona small and emerging businesses to raise capital by reducing the burden on businesses of complying with certain U.S. Securities and Exchange Commission rules and regulations. The act takes a multi-pronged approach â&#x20AC;&#x201C; from removing the ban on general solicitation in connection with accredited offerings, to providing an IPO on-ramp for emerging growth companies, to creating a new exemption for investment-based crowdfunding. For private offerings in particular, eliminating the prohibition on general solicitation for accredited offerings under Rule 506 and the new exemption from registration for crowdfunding securities each represents a significant change to existing law. Eliminating the prohibition on general solicitation will, among other things, allow startups, private equity firms and hedge funds to advertise their investment opportunities to the general public online and through traditional media. Prior to the act, these firms could only accept investments from people with whom they have a preexisting, substantive relationship (although this requirement has always been a gray area). Now, subject to SEC rulemaking, these firms can market securities offerings through television, newspaper and online advertising, so long as the end result is that only qualified inves-

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tors ultimately purchase the securities offered. Likewise, the new exemption for investment-based crowdfunding is poised to become a game-changer for raising money online. Crowdfunding refers to the act of raising money in small increments from a large number of investors. Donation-based crowdfunding is already experiencing explosive growth, through the use of websites like Kickstarter and IndieGoGo. The JOBS Act will take crowdfunding to the next level by allowing individuals to loan money to or buy stock in private ventures through special SEC-registered websites. Despite these opportunities, the act is not without its critics, who argue that it needlessly strips away important investor protections and that it will encourage an outcropping of boiler rooms and bucket shops. Supporters, however, argue that securities rules and regulations are outdated and too complex for small issuers and do not reflect the modern realities of the Internet and social media. They also argue that the JOBS Act will create jobs by encouraging the growth of small and emerging businesses. Time will tell whether the act creates jobs or engenders fraud, but in the meantime, Southern Arizona entrepreneurs looking for additional capital should determine whether new opportunities to raise money created by the JOBS Act are right for them. Biz Nick Jensen is an associate attorney with Lewis and Roca in Tucson.

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BizTucson Magzine Summer 2012