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CATERPILLAR, COMCAST, HOMEGOODS 2,100 NEW JOBS DR. ANDREW WEIL VISIT TUCSON: ON TOP OF THE WORLD www.BizTucson.com
SUMMER 2016 • $3.99 • DISPLAY UNTIL 08/30/16
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BizLETTER
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Summer 2016
Volume 8 No. 2
Publisher & Owner
Steven E. Rosenberg Brent G. Mathis
Creative Director Photo: Steven Meckler
It’s a Triple Crown for Tucson. Three Fortune 500 corporations have selected our region for major operations that will collectively provide jobs for more than 2,100 people. The HomeGoods Distribution Center near the airport, Comcast’s “Center of Excellence” next to Tucson Mall and Caterpillar’s new downtown facility are catalysts for Tucson’s new economic trajectory. The potential economic impact is tremendous. Estimates are Comcast $385 million, Caterpillar $600 million and HomeGoods $870 million. Caterpillar’s recent decision to open a new division downtown is the icing on the cake for our revitalized city center. David Pittman reports on the building boom that continues downtown, including 22 planned residential projects. Public and private sector investments along the four-mile route of the Modern Streetcar total nearly $1 billion. Pittman reports, “The mood among local developers, city officials, realtors and downtown boosters is absolutely buoyant – as the first new downtown hotel in 50 years is under construction, as Caterpillar promises to bring 600 jobs over the next five years to its new downtown offices, as the Tucson Convention Center Arena gets a makeover as a future entertainment and professional hockey site, and as new restaurant concepts continue to flock to Tucson’s urban core.” That vibrant urban core is featured in Visit Tucson’s hip, new travel video inspired by country star Randy Houser’s “Top of the World.” April Bourie reports on the high-impact collaborations with Houser that have put Tucson directly in the national spotlight. First Houser and crew came to produce the music video, “Like a Cowboy,” working closely with Visit Tucson’s Allison Cooper. That’s when she first heard “Top of the World” and imagined the song as the soundtrack to a promotional video showcasing our amazing attractions and stunning vistas. That vision came to fruition – the centerpiece of an innovative marketing campaign. Then Houser liked the featured locations – like Windy Point on Mount Lemmon – so much that he returned to film “We Went.” That video went No. 1 on Country Music Televisions Hot 20 Countdown in April. The three videos have had mil-
lions of views and Houser has become Tucson’s adopted favorite son. Another widely recognized local celebrity is Andrew Weil. Tucsonans are extremely proud of Dr. Weil, a pioneer of mind-body-spirit healthcare. Lee Allen reports on the world-renowned doctor who helped change the face of medicine. More than two decades ago, Weil established the University of Arizona’s Center for Integrative Medicine. This approach to medicine at the time was viewed as controversial. Yet today more than 40 colleges nationwide have a Center for Integrative Medicine, many led by physicians who trained here. Weil has written numerous books, endorsed a wide variety of products and partnered to create “True Food” restaurants. Proceeds from all these ventures help fund the UA Center for Integrative Medicine. Tucson’s annual Global Retailing Conference attracts executives and experts from around the world. They gathered at Loews Ventana Canyon Resort to read the retail industry tea leaves and determine what the “next big thing” might be. Romi Carrell Wittman brings us those insights. To better accommodate inbound and outbound travelers, Tucson International Airport is launching a $28 million renovation project that’s expected to create an estimated 308 construction jobs. This edition of BizTucson also has a delightful assortment of small business success stories, several inspiring “Women Who Lead” features and a look into the exciting future of bioscience and technology. Steven E. Rosenberg Publisher & Owner BizTucson
Contributing Editors
Jay Gonzales Donna Kreutz Contributing Copy Editors Diane Luber Dave Petruska
Contributing Technology Director
Mike Serres
Contributing Writers
Lee Allen Rhonda Bodfield April Bourie Larry Copenhaver Mary Minor Davis Jay Gonzales Tara Kirkpatrick Christy Krueger David Pittman Dan Sorenson Monica Surfaro Spigelman Eric Swedlund Valerie Vinyard Romi Carrell Wittman
Angela Faruolo Kris Hanning Tiiu Loigu Brent G. Mathis Chris Mooney Echo Chanel Paul Tumarkin
Contributing Photographers
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BizTucson Phone: 520.299.1005 Subscription Information:
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Steve Rosenberg 520.299.1005 or 520.907-1012 steve@BizTucson.com BizTucson is published quarterly by Rosenberg Media, LLC. ,Tucson, AZ © 2016 All rights reserved. Reproduction in whole or in part without written permission is prohibited. Opinions expressed in columns or articles do not necessarily reflect the views of the publisher.
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& CONST
BizCONTENTS
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SUMMER 2016 VOLUME 8 NO. 2
OPMENT
FEATURES COVER STORY:
DOWNTOWN BOOMING BizDOWNTOWN 96 No Slow Down Downtown 99
114 22
BizECONOMIC DEVELOPMENT Caterpillar Moves Into Downtown 600 New Jobs
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100 HomeGoods Distribution Center 400 New Jobs 102 Comcast “Center of Excellence” 1,100 New Jobs
WOMEN WHO LEAD
BizCONSTRUCTION 104 $28 Million Airport Upgrade
76 78 80
108 Nine “New to Market” Projects
DEPARTMENTS
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4 22 32 34 44 46 50 54 58 62 66 68
BizLETTER From the Publisher BizMEDICINE Dr. Weil Still Works Wonders BizSALES Is Your Question On The Money? BizTOURISM Tucson’s on “Top Of The World” BizAWARDS Tech Launch Arizona Innovators BizENTREPRENEUR Small Baker, Big Plans BizMILESTONE History at the Arizona Inn BizCOMMERCIAL Broadway Village Mixes Hip & Historic BizMILESTONE Still a Thrill After 40 Years BizCONSTRUCTION UA College of Medicine’s Biomedical Sciences Building BizTECHNOLOGY G1GABLAST Comes to Tucson BizARTS A Marvel of a Village
72 82
BizHEALTH Bright Light in Hospice Care BizMEDICINE Skin Spectrum Partners Share a Vision BizTECHNOLOGY Constant Learning
84 86 88 90 114
BizAUTOMOTIVE New Home for Honda BizHEADQUARTERS Truly a Bug’s Story: Leadership Center BizFINANCIAL A Lifeline For Nonprofits BizGREEN Watershed Management Group Teaching Sustainable Practices BizGREEN Company Recognized for Greening Up Carpet Cleaning BizBIOSCIENCE High-Wage Job Growth BizCOUPLE Dedicated Downtown Duo
116 118 124 126
BizAWARDS Cornerstone Foundation Awards BizFUTURE Innovation Industry Ingredients BizRETAIL Next Generations Are Buying BizHONORS BBB Torch Awards
ABOUT THE COVER
The Peach Properties plan for redevelopment of the 4.7 acre Ronstadt Transit Center site located at Congress Street and Sixth Avenue has been accepted by the City of Tucson, the culmination of a two year/two phase RFP process. The Ronstadt plan includes development of mixed-use retail including 600 residential units, hotel, office space, live/work lofts, public spaces, a public market alongside the new transit mall and a parking garage. Construction for the estimated $140 million project is expected to begin in 2018. Architect is Swaim Associates. Creative Design by Brent G. Mathis
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BizMEDICINE
Dr. Andrew Weil Still Works Wonders Products Support Integrative Medicine By Lee Allen
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imenting with meditation.” Weil has merely acknowledged: “You’ve got to experiment to figure out what works.” Weil knew in his heart integrative medicine worked
Now internationally recognized as THE expert on alternative medicine, medicinal plants and the reform of medical education involving those subjects, his acceptance came gradually and, often, begrudgingly. Yet the Harvard Medical School graduate knew in his heart as early as the 1960s that integrative medicine worked. “But I never thought it would be possible to promulgate that program within the existing medical community,” he said. “As far back as I can remember, I’ve been interested in plants (his bachelor’s degree is in botany) and curious about how the mind and body work together. But those things did not fit with conventional scientific ideas at the time.” Indeed. The concept now known as IM – treating a person’s mind, body and spirit all at the same time – ran counter to the prevalent medical industry mantra of get-straight-tothe-problem-and-fix-the-disease. “I’ve always believed that reform would not be possible without an integrative medicine concept, shifting our energies from intervention to prevention.” The www.WebMD page notes that “IM advocates were expressing a dissatisfaction with a healthcare system that often left doctors feeling rushed and overwhelmed and patients feeling as if they were nothing more than damaged joints and diseased livers.” Weil said, “It wasn’t until the early 1990s, when the economics of healthcare began to go south, that things suddenly changed and institutions began to open up to what consumers were asking for – because integrative medicine offered the promise of saving money. I didn’t dream of being able to change continued on page 24 >>>
PHOTO: BRENT G. MATHIS
Time magazine is approaching its 100th anniversary and Tucson’s famous physician Andrew Weil has the unique distinction of having graced its cover. Twice. Oft called the “Father of Integrative Medicine” – the initially controversial concept involving the interconnection of mind, body and spirit – Weil exploits made the first cover in 1997 asking “Can This Guy Make You Healthy?” and reappeared in 2005 with a more gentle headline “Living Better Longer.” During his period of discovery, as he pitched a new way of thinking about healing, the man now known worldwide as Dr. Weil was soon named one of the 100 Most Influential People in the World and one of the Top 25 Visionaries. CNN’s Larry King referred to him as “America’s Doctor.” The only child of parents who operated a millinery store, the academically gifted student won admission to Harvard University where his personality emerged. A true child of the ’60s, Weil served as editor of The Harvard Lampoon, the campus humor publication, and wrote his senior thesis on the narcotic properties of the common spice nutmeg. Feeling that further research was warranted, in his final year of medical school, Weil undertook a serious clinical study of marijuana, and later, while serving an internship in California’s Haight-Ashbury district, had numerous opportunities to observe the effects of hallucinogenic drugs. He ultimately accepted an offer from the National Institute of Mental Health to direct a study of psychoactive drugs. In the early ’70s, he spent three years traveling throughout the Americas and Africa, studying the use of plants as traditional medicines for indigenous peoples. Calling him “Shaman, MD,” the New York Times magazine wrote: “For most of his life, he’s been an anti-institutional sort of guy – not a hippie exactly, but doing a lot of hippie stuff – traveling, fondling plants, trying drugs and exper-
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BizMEDICINE continued from page 22 medical education because all the institutions seemed totally closed and frozen that way. Yet when I saw an opening to make some big changes, I took it.” Founder of Arizona Center for Integrative Medicine
And it was the right path to take. The University of Arizona Center for Integrative Medicine recently celebrated its 20th year of promulgating Weil’s philosophies. “We’ve now graduated 1,300 physicians with intensive training and that number continues to expand. The world has finally awakened to this concept and it’s gradually becoming mainstream. There are textbooks in the field and half the medical schools in the country have joined an organization supporting integrative medicine. There’s less pushback and more acceptance now. Hardly anybody blinks an eye at the term integrative medicine anymore. There’s been very solid research in this area for almost 40 years that shows it to be both time and cost effective.” Listed with Weil among the Top 100 practitioners of alternative medicine are other readily recognizable names like Deepak Chopra and Mehmet Oz. At age 74, Weil is still an ardent champion of the mission with no plans to slow down or retire. “I want to make sure this center is on solid footing and that there are people to carry on that work. With an annual budget approaching $6 million, we’re getting close – but we’re not quite there yet.” Weil has surrounded himself with quality co-workers who oversee all of the tentacles of a very large business octopus he has built to help fund the IM center and his nonprofit Weil Foundation. “We’ve given away more than $5 million over the last decade and supported some very strategic things that have had big payoffs,” he said with pride. One reason Weil gathered together team members equally dedicated to his myriad causes is that in fact “I’m ambivalent when it comes to the business stuff. I got into the entrepreneurial endeavors as a way to generate a revenue stream for the center after I discovered that when I tried to do everything myself, it became impossible.” Indeed. A decade ago when his string of commercial ventures began to ap24 BizTucson
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pear, Bloomberg News was scathing in a report titled “Dr. Weil, Heal Thyself ” that said “The health-guru-turned-celebrity is trying to prove you can simultaneously be an icon for social change and a fast-growth entrepreneur. So far, he’s off to a sputtering start.” Best-selling author and health guru
Not exactly. That part of the empire is phenomenally healthy now, coordinated and supervised by Richard Baxter, Weil’s business partner since 1994. He said, “I inherited a decentralized organization and began the process of formalizing our business diversification. After-cost product sales revenue and licensing royalties from Weil Lifestyles are donated to finance the legacy of the center (which did close for a short time in the late 1990s because of a lack of funding and a hefty deficit).
“Andy never wanted to be in the limelight for as long as he has. He would have been content to continue writing (he’s currently working on book number 14) and teaching and staying out of the business world – but to build revenue generators, he stepped up.” By his own admission, Weil is a true Gemini who can appear comfortable in the spotlight as needed, but he doesn’t seek stardom. “Although it’s not readily apparent because of numerous speaking engagements and public appearances, I’m basically an introvert, shy by nature,” he said. “I’ve reached the point in life,” he wrote in a Huffington Post Healthy Living blog, “that I choose to do only those things that make sense to me – a list of
activities that has become much shorter than it was a few years ago.” One of the items on his short list is “pursuing a few carefully chosen projects that advance the cause of effective, affordable medical care for all Americans.” A few projects? That would depend on how you define “a few” and if you allow those “few” to be gigantic in scope. “It was with great reluctance that I allowed my name and face to be used on products,” he said, “and I take a lot of crap about that from people, especially within the academic world, that I sold my soul. I don’t get any profits from all these projects. I just get all the flak and none of the reward.” Products ensure success of the mission
In a 2009 BizTucson interview with Weil, reporter Jane Erikson wrote, “The Weil brand was born, not of greed, but of necessity.” Ergo, a need that had to be fulfilled. If you’re the one who conceptualized and brought forth a new approach to healthcare, you must do what you’ve got to do to raise funds to ensure the success of that mission. And how. In the more books/more money category, the New York Times best-selling author is currently at work on “Mind Over Meds,” his latest editorial undertaking focusing on our overmedicated society. Weil continues as editorial director of the popular website, DrWeil.com. He is the founder and cochairman of Healthy Lifestyle Brands and the founder and co-owner of a growing chain of True Food Kitchen restaurants. In the restaurant world, Valley entrepreneur and former Tucsonan Sam Fox has a reputation comparable to Weil’s as a nutritionist. After the two spent time together cooking in the doctor’s Tucson kitchen, they agreed that healthy food could be delicious. The two have now worked together to build 12 eateries to date. The menus feature dishes influenced by Mediterranean and Asian cuisine, the two healthiest food cultures in the world, with entrees that tend to adhere to the principles of the Dr. Weil anti-inflammatory diet. “The concept clearly seems to work wherever it’s implemented,” Weil said. “The restaurants are always busy. We have a broad appeal to vegans, vegetarcontinued on page 26 >>> www.BizTucson.com
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BizMEDICINE continued from page 24 ians and people who just want a great meal that’s good for them. Our commitment is that no matter how many locations are established, True Food will never become what one thinks of as a ‘chain’.” So, with two eateries already in Arizona (Phoenix, Scottsdale) and five more on the drawing board for this year, the logical question is – where does Tucson fit into the future? “What we’re doing elsewhere is exciting, but it’s still embarrassing we don’t have one in Tucson, and I get asked about that every week,” Weil said. “Tucson isn’t considered a large enough market to be one of the first 20 sites – but once we get there, I’ll be making a big push to establish one in the Old Pueblo.” Weil name sells kitchen goods, skincare, vitamins, footwear
Other entities licensed by Weil Lifestyle range from skincare products, customized vitamins, pet food and footwear with after-tax profits donated to his many cause-based crusades. Internet researching of his myriad enterprises leads one down the informational rabbit hole It’s a biblical experience with one enterprise begetting another and all headed in the same health-focused direction.
Log on to www.drweilproducts.com and prepare to be overwhelmed at the variety of items designed to help promote a healthy lifestyle – from nutritional foods to kitchenware to personal care products. Weil and partner Origins Natural Resources (one of the Estee Lauder Companies) have worked together for over a decade now on a collection of proactive skincare treatments that combine therapeutic plants and herbs with wellness and lifestyle techniques. In developing natural cosmetics like Plantidote Mega-Mushroom Face Serum, Weil relied on his past travels. “In East Asian medicine, a lot of mushrooms are used for their anti-inflammatory effects and the root of a lot of skin problems is inflammation.” Bingo! Attesting to product success and good marketing, the Dr. Weil Origins line is now available in more than 15 key global markets, 100 of its own free-standing retail stores, and more than 400 department and specialty stores throughout the U.S. Weil beams at the many commercial successes – all means to an end. “The Weil Foundation funds advancement of integrative medicine and I believe the day is coming when all doctors will be routinely trained in the subject. The tens of thousands of health-wise
consumers who buy Weil-endorsed products become a partner with me in bringing that day closer.” Building the Weil World Empire came with a cost however. His former wife Sabine Kremp, mother of their daughter, Diana, had enough after eight years of being Number Two after his work. “The empire killed the marriage,” she’s said. While “slow down” is not in his vocabulary, Weil may consider ratcheting down his writing. “The whole publishing business is in flux – and I’ve said about all I have to say. I don’t know for sure, we’ll have to see, but there are no pressing issues at the moment that would make me consider book 15.” There’s also nothing planned along the lines of a sandy beach listening to waves crash while sipping an adult libation. “Not my idea of relaxation,” he said. “I prefer leisure activities like gardening and cooking. Besides, I can’t imagine not working in some capacity. It’s a central focus of my life and I get great satisfaction from that.” An amazing trajectory of social change and success for a man who decided 40 years ago that it was an omen when his car broke down here and he decided to stay and make Tucson his home.
Clockwise from left – True Food Kitchen restaurants, Andrew Weil with Sam Fox at True Foods Kitchen, Mega Defense UV Defender, Mega-Mushroom Face Serum 26 BizTucson
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BizBRIEFS
Kevin Stockton
Kevin Stockton was promoted to Market CEO of Northwest Healthcare, overseeing Northwest Medical Center, Oro Valley Hospital, Northwest Allied Physicians and affiliated outpatient facilities. He will continue as CEO of NMC. In that role since 2011, Stockton expanded the number of locations that deliver care outside the hospitals to 23 physician practices and nine urgent care centers, and opened Tucson’s first freestanding emergency department. The Tucson native is a University of Arizona graduate. Biz
Aditi Gupta
Aditi Gupta, CFP® Associate Vice President, Financial Planning Specialist, Financial Advisor has joined LGG Wealth Management Group at Morgan Stanley. As a Financial Advisor for the past eight years, she has helped clients, their families, and the people that they care about create comprehensive wealth management strategies. Aditi recognizes and understands that wealth is measured by more than money; it can be someone’s family, their business, their philanthropy, or their legacy. By listening carefully to her clients, she learns what is meaningful and important to them and helps organize and simplify their financial lives so they can spend more time doing what they love.
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BizBRIEFS
Alan Stern World View Co-Founder and Chief Scientist Alan Stern has been named to the 2016 TIME 100, the magazine’s annual list of the 100 most influential people in the world. He also was on the list in 2007. Stern is an internationally recognized planetary scientist and space program executive who served as NASA’s chief of all space and Earth-science programs and led NASA’s New Horizons mission to Pluto.
Biz
Kami Taylor CBRE promoted Kami Taylor to sales manager of the real estate firm’s Tucson office. Taylor will have oversight of the day-to-to day operations for CBRE in Southern Arizona. She has been with the company for a decade and holds an MBA from Arizona State University. She will be relocating from Salt Lake City.
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Julie Tainter Westin La Paloma Resort & Spa, part of Starwood Hotels & Resorts, has named Julie Tainter as director of sales and marketing. Tainter will work with the Starwood field marketing team alongside a national and local public relations firm to oversee creative design, marketing, social media and public relations efforts. Additionally, she will direct and supervise day-to-day sales operations encompassing groups, leisure, catering, convention services and business development. Biz
Brian Barker Brian Barker, president of Barker Morrissey Contracting, is now a partner at United Builders, following the March 28 retirement of Senior VP Andrew Karic. Barker retains his position and active role as president of BMC. United Builders is a Service Disabled Veteran Owned Small Business that has been in business for eight years. The SDVOSB designation is awarded to businesses that are owned and managed by a service-disabled veteran. Biz www.BizTucson.com
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BizSALES
Is Your Question On The Money? By Jeffrey Gitomer
Do you want fries with that? That is the single most powerful question that’s ever been asked in the history of the American economic society. It has created billions of dollars worth of revenue. It has spawned thousands of other up-selling questions in the same industry. Every person reading this column has been asked the question “Do you want fries with that?” and many answered in the affirmative. I have no idea who created that question. But that question is not just an example. It’s a lesson. A multi-faceted lesson. Here’s why. It’s a closing question. 1. It’s an up-sell question. 2. It’s an easy question to teach anyone to ask. 3. It’s a nonabrasive question. 4. It’s an easy question to say yes to. 5. It’s a money question. 6. 6.5 It works. McDonald’s has been asking that question in one form or another for more than 20 years. They have learned the power of up-selling or add-on. They have a tactical advantage when asking this question because the people they are asking are hungry. It’s the perfect time to ask the question. At a restaurant, your server will come by after you’ve finished your entrée and ask if you want dessert. Most people say “no” because they are full. The question is correct, but the timing could not be worse. And so the object of asking a great question is not simply asking the question, it’s asking the right question at the right time. The science of questioning is the heart of the sale. Here are 9.5 benefits to make sales by: Qualify the buyer. 1. Establish rapport. 2. Create prospect disparity. 3. Eliminate or differentiate from the competition. 4. Build credibility. 5. Know the customer and her business. 6. Identify needs. 7. Find hot buttons. 8. Get personal information. 9. 9.5 Close the sale. All these answers come from asking the right questions. Power questions. 32 BizTucson
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So, what’s a power question? A question about the prospect that makes him or her stop to think and answer in terms of you. “Do you want fries with that?” is not just a power question. It’s a powerful question. And now that you know that, my challenge to you is, what’s yours? What questions are you asking that will differentiate you from your competition? What questions are you asking that will make your customer consider new information? What questions are you asking that will make you look like you have prepared for the sales call? What questions are you asking that will make you appear to be an expert in your field? What questions are you asking that will make your prospective customer, your probable purchaser, have confidence in you and want to buy from you? Now that I’ve put you in a corner, and you realize that your questions are somewhere between horrible and lousy, let me share a few answers that will help you build your arsenal of power questions. 1. Stop asking questions in terms of you and start asking questions in terms of your customer. Questions like “Who are you using right now?” and “How much are you paying?” and “Can I bid on that?” are questions in terms of you. Ask questions so the customer can talk about his or her experience. 2. Stop asking stupid questions that the customer already knows the answers to. Instead of asking “Tell me a little bit more about your business,” a smarter version of that would be “Tell me how you got started in this business.” 3. Stop asking sales questions and start asking consulting questions. Instead of saying, “If I can deliver by the 14th will you take it?” start asking, “When would you like to begin producing more?” or “When would you like our profit to kick in?” 3.5 Ask questions that build a relationship instead of promoting a transaction. Short-term salespeople are concerned with delivery dates and commissions. Long-term salespeople are interested in seamless delivery, service follow-up, reorders and referrals. Good questions get to the heart of the problem or the need very quickly, and the buyer doesn’t feel like he or she is being pushed. Use the questioning process early and often. If you’re doing most of the talking and the prospect is not, you’re boring the prospect and losing the sale. Questions are the difference between SALE and NO SALE. And the best part is, you make your own difference. If asked the question “Do you want fries with that?” when you’re hungry, I dare you to say “No.” You see, the challenge is to convert that power, and talk to your customers
Biz
Jeffrey Gitomer, author of The Sales Bible, is now offering licensed training programs to corporations, as well as distributorships to individuals, based on his best-selling books and the TrainOne online learning series. This process is starting with his newest book The Patterson Principles of Selling. Jeffrey can be reached by phone: 704.333-1112 or e-mail: salesman@gitomer.com © 2016 All Rights Reserved. Don’t even think about reproducing this document without written permission from Jeffrey H. Gitomer and Buy Gitomer. 704.333-1112
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Tucson’s on ‘Top Of The World’
PHOTOS: COURTESY TIIU LOIGU, SET PHOTOGRAPHER
Visit Tucson, Country Star Produce Hit Campaign
By April Bourie Randy Houser’s country song “Top of the World” put Visit Tucson in orbit with its peak-season marketing campaign and promotional travel video filmed in some of the coolest places in and around the city – and viewed by hundreds of thousands of country music fans. The singer/songwriter liked those locations so much that he returned to film his next music video in many of those same 34 BizTucson
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spots. That video – “We Went” – landed at the top of Country Music Television’s Hot 20 Countdown in April, again putting Tucson directly in the national spotlight. Cooper first worked with the country music artist when his crew came to film “Like a Cowboy,” which reached No. 3 on the Country Airplay chart in March 2015 and was nominated for Song of the Year at the 2015 Country Music Association Awards. continued on page 36 >>>
BizTOURISM
“Sittin’ out on the edge, Our legs hangin’, look at God paintin’ the sunset from this truck-bed… Feel like we’re a mile high, can’t breathe, you can see everything: Moon, the stars, it’s ours, it’s like we own it…We’re on top of the world. – “Top of the World” by Randy Houser
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BizTOURISM
Allison Cooper & Randy Houser on set of “Like a Cowboy”
“On Top of the World” campaign in Chicago
continued from page 34 In fact, it was while collaborating on “Like a Cowboy” with Houser’s production company, Team Two Entertainment, when Cooper first heard the words to “Top of the World.” She said the song immediately conjured visions of Mount Lemmon, San Xavier mission, Gates Pass and all of Southern Arizona’s allure. That was the germination of the idea for the Visit Tucson marketing campaign. Dustin Rikert, film director at Team Two Entertainment, originally recommended Old Tucson to Houser for filming because the singer/songwriter wanted a location that was more cinematic and authentic and had that “romance of the west” feeling to it, Cooper said. And she wanted to make sure viewers of the “Like a Cowboy” video would know it was filmed in Tucson and Southern Arizona, promoting the destination. To achieve that, she connected with Rikert through a product placement company to include a sign in the opening scene that says “Welcome to Tucson.” “Utilizing product placement in Houser’s two official music videos and licensing usage of his ‘Top of the World’ as a sound track for our promotional travel video significantly increased awareness among highly targeted consumers – fans of country music – who also closely match our visitor profile,” Cooper said. “These videos have generated more than 10 million online views and countless more on television.” According to Forbes, country music fans comprise a massive and influential cultural segment with 102 million people. And MRI reports that country music fans spent $46 billion on travel in 2010, which is 47 percent of all travel spending, she added. “Through this campaign we were able to reach travelers who were outside the traditional travel vertical and tell them a story about Tucson that makes them want to visit.” “We’ve had a great time,” Houser said in interview on KIIM FM. “I would encourage anybody to come out here.” He and his crew were treated the authentic taste of Tucson, the only officontinued on page 38 >>>
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“
We wanted to portray Tucson as an outdoor mecca with a cool urban vibe. – Allison Cooper VP of Sales & Marketing Visit Tucson
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continued from page 36 cial City of Gastronomy in the nation – savoring Sonoran hot dogs from El Guelo Canello and lunch catered by El Charro. This collaboration opened the door for Cooper to approach Houser and Rikert about the idea of using “Top of the World” in a promotional video specifically for marketing Tucson. “Because of the terrific connection we made, the artist’s manager and music label helped us negotiate a two-year licensing agreement with the songwriters for far less than any of us imagined,” Cooper said. “We wanted to portray Tucson as an outdoor mecca with a cool urban vibe,” Cooper said. Team Two Entertainment produced the “Top of the World” video for Visit Tucson to showcase those attractions and sites that are Tucson treasures. They developed a script that matched the lyrics of the song and incorporated Visit Tucson’s “Free Yourself ” brand. To add to the video’s authenticity, they developed a list of locals to be featured and decided that some of the people in the video should be actual Tucson visitors. “We spent an entire day at Windy Point up on Mount Lemmon,” Cooper said. “It was there that we found so many visitors for the video, including a father and his young son from Canada, a gentleman traveling with his dog, and a girls’ getaway group consisting of a mom, a daughter and her friend from Minneapolis. “They were delighted to participate,” Cooper said. “And, they allowed us to show an authentic depiction of the variety of people who are inspired by Tucson. Crafting the ‘Top of the World’ tourism campaign
Once the production was completed Visit Tucson had a video that appealed to travelers’ desire to relax, rejuvenate and explore – the embodiment of the “Free Yourself ” brand. Targeted specifically to outdoor adventure seekers, foodies, golfers and affluent travel segments, Visit Tucson once again also appealed to country music fans. Reaching these markets in a meaningful way was the next challenge, 38 BizTucson
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Cooper said. The full-length video and a 30-second version were posted to YouTube and Facebook and the Visit Tucson website. Online storytelling by local travel writers were also promoted and increased the time viewers spent on the page from an average of one minute and 43 seconds to an average of seven minutes and 58 seconds. Online, the video generated more than 161,000 views of the full-length “Top of the World” video and more than 118,000 views of the 30-second video. An article about the campaign itself appeared on many country music websites, blogs, CNN.com and other premium websites, resulting in several million impressions. Here in Arizona, online marketing was enhanced with a “feet-on-the-street” activation. During the four days before Thanksgiving, Visit Tucson took over a street in the Westgate Entertainment District in Glendale, providing a climbing wall, giving away Tucson Attractions Passports, registering Phoenicians for raffles, and featuring Tucson chalk artist Ignacio, who recreated 3D images of Mount Lemmon and the Arizona-Sonora Desert Museum’s Raptor Free-Flight Program. The Phoenix metro area is the No. 1 market for visitation to Tucson. All aboard the elevated trains in Chicago
“Chicago is a prime market for attracting travelers to Tucson. It ranks fourth in visitor spending and receives the lion’s share of our peak-season advertising budget,” Cooper said. This year’s campaign launched in January, combining traditional marketing tactics and innovative approaches. “We wrapped elevated trains with high-impact “Top of the World” imagery and amplified our message with video projection of iconic Tucson scenes on urban buildings. We deployed brand ambassadors – actual feet-on-the-streets – to distribute Tucson visitor guides to commuters along with steaming cups of Mexican hot chocolate. We branded the interiors of the trains and displayed our videos on LED screens inside the train stations to complement Tucson’s ‘street theater’ approach to engaging potential visitors. The campaign’s landing page drove more than 18,000 page views.” By the end of the fiscal year, Visit Tucson had placed $989,000 in advertising with a media value of nearly $4 million, Cooper said. The campaign has been so successful that Shaun Aukland of Google Travel called it an “epic continued on page 40 >>> www.BizTucson.com
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BizTOURISM
Randy Houser in “We Went” video
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Tucson had so much to offer we just had to come back.
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– Randy Houser Country Music Artist
continued from page 39
collaboration.” But the story doesn’t end there. “Because we worked so well together on the first two projects, Dustin and Randy asked for our help in filming ‘We Went,’ ” Cooper said. “We assisted in obtaining filming permits at many of the locations, including the legendary Tap Room at the Hotel Congress, Windy Point and Casino del Sol.” Houser said, “Tucson had so much to offer we just had to come back.” And once again, a country music video he filmed here topped the charts. “It’s really cool how we worked to really lift both brands,” Cooper said. “We went all out with Houser. He’s giving Tucson a footprint that extends far beyond our marketing and advertising budgets. And it’s authentic – more meaningful than traditional forms of advertising. It’s a very strategic, wellorchestrated effort.”
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BizTOOLKIT Business Tax Incentives Galore in Arizona We are fortunate to live in Arizona. Whether you have come from other parts of the country or have grown up here, we have pretty favorable laws on the books that keep our state at the forefront of attracting better jobs and keeping more money in your pocket. Just think about it – would you rather pay 12.3 percent income tax on your money or 4.54 percent? I have a longtime client who always reminds me that she likes to visit California, but wouldn’t want to pay the taxes there. Another border state, New Mexico, charges sales tax on many services like landscapers, house cleaners and even CPAs. Arizona’s legislature keeps voting down similar measures. Our state aims to attract new businesses and incentivize current businesses to expand. Littered all over Arizona’s economic development website – azcommerce.com – are incentives and programs available to businesses both large and small. Along with the other CPAs here at R&A, I continue to see results of the Research & Development tax credit, I
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still field phone calls from clients wanting to discuss the Angel Investment Credit, and I’m always happy to let businesses know about the Health Insurance Premium tax credit because it usually means health insurance coverage for more people. There’s also the Quality Jobs credit or the Qualified Facility credit. When created and used effectively, tax credits are powerful tools to create new jobs and a stronger platform for new businesses. Some of these credits are quite significant, especially for fledgling companies and startups. While not a strict incentive and expansion initiative, the Arizona legislature recently expanded the donations of School Tuition Organization credits to S-Corporations. When done properly, an S-Corporation can donate to STOs and the credit will pass through to the owners. This is a tremendous opportunity to self-direct your tax dollars to our Tucson schools. This expansion should create a much-needed impact as the monetary caps associated with donations by individuals do not apply.
Lately we are seeing a number of our existing clients needing expertise in foreign tax matters as more and more cross-border business issues are emerging. We continue to work hard at helping existing businesses identify their foreign reporting requirements and tax savings opportunities, whether it’s because of foreign trade zone incentives or selling goods overseas. Careful planning is a must throughout the year because many of these credits require preapproval or a methodical approach. Talk with your CPA or tax professional to get more information. And if you are new to town or looking for a certain expertise, please don’t hesitate to give us a call. We’re glad to discuss what keeps you up at night as a business owner. Biz Jed Lightcap joined R&A CPAs as a tax manager in January 2016. He specializes in for-profit tax engagements, entity selection and controllership/ CFO services.
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Former Wholesaler Execs Form Craft Beer Consulting Partnership Former beer wholesaler executives Kimberly Clements and Daniel Lust of Golden Eagle Distributors have formed Partners Invested in Transformational Solutions, a consulting venture developed to serve craft brewers and
wholesalers across the country. PINTS will provide objective business planning and strategic growth solutions for the beverage industry, primarily tailored to the craft beer segment. PINTSâ&#x20AC;&#x2122; goal is to help craft brewers
Kimberly Clements & Daniel Lust
BizBRIEF
seeking growth and distributors seeking to enhance their craft beer portfolio by offering assistance with due diligence, market research, sales training, contract negotiations, brand awareness, retail analysis and portfolio development. Clements began her career in 1994 working for Golden Eagle as a marketing coordinator and a sales rep. Her career has been focused on establishing tactical and relevant sales and marketing strategies for both on and off premise and serving as a catalyst to grow the GED portfolio. She was executive VP of sales and marketing before taking over as president in 2004. Lust joined Golden Eagle Distributors in 2004 as the marketing and public relations coordinator, then served as pricing analyst, territory sales manager and director of pricing and sales execution before being tapped as VP of sales and marketing in 2014.
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PHOTO: PAUL TUMARKIN
BizAWARDS
From left – Jeffrey Pyun, Bibiana Law, TLA VP David Allen, UA President Ann Weaver Hart, Heather Gaines, Joseph Valacich, Anne Stratman, Lawrence Hecker, Manny Teran, Laura Todd Johnson, Laurence Hurley and Dominic Gervasio.
Innovators Honored with Tech Launch Arizona Awards Tech Launch Arizona held its third annual I-Squared Awards for Innovation and Impact in April, honoring those whose work directly affects the quality of life for people around the world through research, collaboration and innovation. University of Arizona President Ann Weaver Hart spoke at the event and helped present the awards. “The UA and its partners are doing amazing work to advance research and its application to new products, businesses I 2 Award for Chemistry and Physical Sciences
Jeffrey Pyun, professor of chemistry and biochemistry in the UA College of Science. His research interests focus on the synthesis, selfassembly, characterization and device evaluation of novel polymers, nanoparticles, nanocomposites and thin films. He collaborates closely with TLA on identi44 BizTucson
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fying, protecting and licensing inventions stemming from his research. I 2 Award for Biomedicine
Laurence Hurley, professor of pharmacology and toxicology in the UA College of Pharmacy and the Howard Schaeffer Chair in Pharmaceutical Sciences. He has served as associate director of the BIO5 Collaborative
Summer 2016
and industry,” Hart said. “We are proud to recognize the dedication and talent of the innovators who are helping to create new knowledge and apply it to meet the challenges that we all face.” Honors were given to individuals and teams in eight categories. Six awards were given to UA faculty/researchers/staff who have demonstrated excellence as inventors and effective Tech Launch Arizona partners. They are: Research Institute and codirector of the Molecular Therapeutics Program at the Arizona Cancer Center. Hurley was the discoverer and developer, with Cylene Pharmaceuticals, of Quarfloxin, the first-in-class Gquadruplex-interactive molecule that reached Phase 2 clinical trials. He is the scientific founder and CEO of UA startup TetraGene, a biotech company that fo-
cuses on targeting secondary DNA structures to modulate expression of undruggable targets. I 2 Award for Information Technology
Joseph Valacich, professor of management information systems at the UA Eller College of Management. Valacich, whose expertise is in cyberscurity, deception and fraud detection, has www.BizTucson.com
worked with TLA to start a new company, Neuro-ID, to commercialize a technology that helps clients better manage risk by identifying potential deception in online forms and questionnaires. I 2 Award for Engineering
Gaines and Anne Stratman, associate general counsels. Two award categories recognized contributions from UA graduates. They are: I 2 Award for Industry and Corporate Partnership
Dominic Gervasio, professor of chemical and environmental engineering in the UA College of Engineering. His research focuses on new materials and their stability and corrosion properties for concentrated solar power, electrolytes for DC power supplies such as fuel cells, batteries and capacitors, and non-platinum catalysts for conventional and bio fuel cells. Most recently, Gervasio worked with TLA on two startup companies, MetOxs and Caltrode.
Recognizing a company/ business that has demonstrated excellence in collaborating to forward the TLA mission. This award was presented to Manny Teran, president of Aztera, a product development and automated test company focused on mechanical, electrical, software optical and biosystems engineering. His corporate experience ranges from startups to Fortune 500 companies, and he has served as a member of TLAâ&#x20AC;&#x2122;s Commercialization Network and holds a position on its advisory board.
I 2 Award for Agriculture and Life Sciences
I 2 Award for Ecosystem Impact Rec-
Bibiana Law, associate research professor in the Schools of Animal and Comparative Biomedical Sciences in the College of Agriculture and Life Sciences. Her research focuses on the vaccination of animals to reduce transmission of foodborne pathogens, vaccination of animals against diseases, and campylobacter and salmonella in the environment and foods. She co-founded Anivax, a UA startup formulated to commercialize the campylobacter vaccine. I 2 Award for Campus Collaboration
UA Office of the General Counsel. The key team members recognized were Laura Todd Johnson, VP for legal affairs and general counsel, and Heather www.BizTucson.com
ognizing an individual community leader who has demonstrated commitment and proven to be effective in bringing the surrounding communities of Tucson and Arizona to bear on the TLA mission. This award went to Lawrence Hecker, managing partner of the Hecker law firm. He has served as chairman of the Securities Regulations Section of the State Bar of Arizona, and is a member of the Securities Regulations and Business Law Sections of the State Bar of Arizona. Hecker is an assistant adjunct professor at the UA College of Law teaching law and entrepreneurship and is a frequent TLA collaborator.
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PHOTOS: BRENT G. MATHIS
Don Guerra
Owner Barrio Bread Company
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BizENTREPRENEUR
Small Baker, Big Plans
USDA Grant Helps Expand Artisan Bakery By Lee Allen How do you take a 30,000-year-old product, the most widely consumed food in the world, and turn it into something new? Tucsonan Don Guerra, a skilled artisan baker and forward-thinking entrepreneur, knows how. The baker, educator and proponent of community collaboration built and developed a Community Supported Baker model in The Old Pueblo that is germinating similar models in places like Taiwan, Singapore and Oslo. His Bread Without Borders program has taken him to Mexico to train people in his methods. His Barrio Bread Company is also the recipient of a $100,000 local food promotion grant from the U.S. Department of Agriculture. The grant, part of nearly $35 million in new USDA funding to support local and regional food systems, was one of seven given to agricultural projects in Arizona. “The funds are designed to promote local foods and agricultural stimulation via local food products into businesses,” said Guerra, surrounded by flour flying
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and dough rising in his mid-city home bakery. “It’s a way to support the farmers growing the ingredients and then the processors that become the hub to get the end result into the community.” Local focus
“We’ve been working hard to build a local grain economy here and the consumer public is becoming more aware of those efforts,” said Guerra, who buys his flour from BKW Farm in Marana and Hayden Flour Mills in Queen Creek. “We are local vendors supporting the local economy and that’s the way grain economies need to function – in collaboration with each other.” The grant will provide funding for equipment to expand his current production and will be a springboard to the next phase of growth – a larger bakery with more ovens and some apprentice bakers. It also will involve a brick-andmortar facility that will double or even triple his current output. “Everything I’m doing now, I’ll carry forward,” Guerra said. “I don’t plan on changing
my model because it’s proven efficient and effective.” The grant money must be spent by summer of next year, so Guerra continues to bake in his garage ovens while deciding what new ovens to purchase and where to relocate. “I have several locations I’m considering, primarily in central city,” he said. “I’d like a nice exhibition-style bakery with large windows where you could look in on the ovens and watch bread being made.” Guerra would even like to install a venting system to waft out the aroma of fresh bread baking. “I’m a nurturer, an essential quality for a baker, and as an entrepreneur, I’ve put strong business systems in place that can manage the load put on them,” he said. “If the grant helps me expand, it will be the next step of a project years in the making.” His longtime philosophy has been “one loaf at a time,” and the palette for his artistry is a giant prep table where continued on page 48 >>>
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BizENTREPRENEUR continued from page 47 bread-to-be rises and is formed into the specialty loaves of the day. With practiced skill, he mixes flour, water, salt and yeast on his culinary canvas and turns it into 40 varieties of artwork. “My signature is on every loaf because my hands are on every loaf, start to finish.” For the love of baking
His hours are crazy. He puts in 80 or more in an average work week. Each evening begins with a culture starter that has to be checked at 2 a.m. to ensure it’s ready for kneading and baking before the sun comes up. Guerra goes through half a ton of flour for the 600-800 loaves he bakes each week. He sells out every loaf through online pre-orders at BarrioBread.com. By the time he shows up at designated distribution sites, the crowds are already waiting in line to pick up their orders – take-home bags in one hand, payment in the other. “Social media has been a big force behind my success and with my Bread Without Borders program. I’m a keystroke away from reaching the other side
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of the world. It’s an international community and bread is the common language. Apparently others speak that same language. Dessert Professional magazine recently named Barrio Bread as one of the Top Ten Breadmakers in America.
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Everything I’m doing now, I’ll carry forward. I don’t plan on changing my model because it’s proven efficient and effective. Don Guerra Owner Barrio Bread Company –
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“I’ve learned to control the things I can and develop a business based on who I am and that’s turned some heads. I’ve tried to be aware of the opportunities and energies coming my way and working with what’s in front of me, what feels right,” Guerra said. “I’ve been able to develop a business that has heart and soul – and that passion resonates with people. I love the physicality of the process, the math and science involved. It’s who I am and although I’ve been doing it for 25 years, I wake up every day trying to find new approaches and solutions because complacency is the enemy of creativity. And at the end of every day, I have a sense of satisfaction when I can see, feel and smell the product I’m packaging up.” Following receipt of the grant and launch of Bread Without Borders, Guerra says “I’ve created a unique business approach, a reliable income stream and a level of satisfaction – all of which provide a safe launching pad for the next step forward. “The success I envision is inevitable and I have a quiet confidence it will come.” Biz
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BizMILESTONE
History at the Inn
Arizona Inn Celebrates 85 Years Of Family Business
Isabella Greenway
PHOTOS: COURTESY ARIZONA INN
By Tara Kirkpatrick JFK once left his swimsuit here. John D. Rockefeller Jr. worried that he wasn’t paying enough. Frank Lloyd Wright admired the architecture. And Clark Gable was snapped lounging in the Arizona sunshine. These are just a few of the famous visitors to the Arizona Inn, the historic, rose-hued hotel that recently celebrated 85 years as the place to stay when heading West – a vision established by its original founder and the state’s first congresswoman, Isabella Greenway. “We’re aware, robustly aware, every day that the Inn has a lovely kind of momentum,” said Will Conroy, Greenway’s great-grandson and president of the Inn. “And we know that momentum is human – and comes from beyond our family or the staff at the Inn to the thousands of remarkable, extraordinary friends and guests who’ve passed through our doors for more than eight decades.” Nestled on 14 acres in central Tucson, the 1930s-built, 92-room Arizona Inn still exudes the Spanish Colonial luxury of its infancy – with private, attached cottages radiating around lushly landscaped lawns and the original pool, made with pumice from “A” Mountain. Yet, within the sturdy walls of this desert institution, a greater story lingers of the majestic woman who built the inn and her family that still runs it to this day. 50 BizTucson
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Indomitable Isabella
Born in Kentucky, Isabella Selmes Ferguson Greenway King was a baby in the badlands of North Dakota, but moved to New York as a teen, attended tony prep schools and became a debutante. There, she met lifelong friend Eleanor Roosevelt, according to Blake Brophy’s pink book on the inn, “Tucson’s Arizona Inn.” She married Robert H. Munro Ferguson not long after being a bridesmaid in Eleanor’s wedding to President Franklin Roosevelt and eventually moved from New York to Silver City, N.M. Ferguson’s portrait still hangs in the Inn library. Widowed as a young mom with two children when Ferguson died of a lung infection in 1922, Isabella married John C. Greenway and moved to Ajo, Ariz., close to his copper mining operation. Just two years later, Isabella was widowed again with a third child when Greenway died from surgery complications in 1926. Yet, through those two early-life tragedies, Isabella was always building, from her home in New York to country houses in New Mexico and Arizona. “During the 23 years of her adult life up to 1929, she had accumulated more than a modicum of experience in construction projects, ranging from the basic to the sophisticated,” Brophy wrote. continued on page 52 >>> www.BizTucson.com
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Parachute
President Franklin Roosevelt and Eleanor with Isabella Greenway Clark Gable
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BizMILESTONE continued from page 50 Among numerous accomplishments, Isabella became an active Tucson citizen who cared greatly for the disabled World War I veterans who often came West. She created and funded the Arizona Hut, a woodworking workshop that employed war veterans and, at its peak, sold furniture to department stores across the nation. As the Great Depression loomed, Isabella bought much of the furniture to keep it afloat. She needed a place to furnish and the Arizona Inn was born. Building an enduring inn
Isabella took out a building permit for the Arizona Inn on Sept. 30, 1930, working with architect M. H. Starkweather. “She was convinced that Tucson needed a resort hotel of a certain type and style, and she also felt that if she were to have anything to do with it, she should conduct the project herself,” Brophy wrote. When a workman argued against a certain change, she responded, “Don’t you ever tell me I can’t do anything.” When confirming the pink color of the Inn, Isabella took the painter out in the sunlight and pointed to her forehead. “This is the color I want,” she said, according to Brophy’s book. “The Inn’s rooms and paths are still as Isabella designed them,” said Conroy, who updated Brophy’s book with his own, “Arizona Inn, A History,” in 2013. “So, I feel her legacy in virtually every architectural line and curve.” Her remarkable foresight is still evident today, he wrote in his book. Isabella had a large service basement created for the pool, which has since made upgrades easier. In the dining room, she triple-layered the wood floor to limit sound and included old-growth fir trussing too hard for termites. Underground protective tunnels for the water pipes have given way to electrical, fiber-optic cables and water lines. Conroy wrote, “I once came upon a plumber gazing in apparent wonder at one of the passageways. He remarked that the tunnel was a bit like opening a garage and finding a mint Model A Ford inside.” A celebrity draw
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1933 Portrait of Isabella Greenway
ARIZONA INN FUN FACTS A few of the lamp tables in the library were made by disabled World War I vets at the Arizona Hut. The large guest room closets used to hold steam trunks brought by traintraveling guests. The animal figurines in the African/ Safari rooms were brought by Isabella Greenway from an African trip. The Catlin Room is named for American painter George Catlin and displays his prized depictions of Native Americans on the Western Frontier. The bronze statue in the lobby, Marguerite, belonged to Isabella’s aunt, Grace Flandrau. The walls between the guest rooms are not adobe, but double columns of red brick with an inch of space in between.
na’s Sigma Phi Gamma sorority dinner dance – an event that established the Inn as a community gathering place. Isabella then went on to serve two terms in the U.S. House of Representatives from 1933 to 1937 and two years later married a third time to manufacturer Harry O. King. They split their time between New York and Tucson. Through the Inn, Isabella built quite a celebrity following. Famous guests include Gary Cooper, Clark Gable, Spencer Tracy, John Wayne, Bing Crosby, Frank Sinatra, Bob Hope and others. And that’s just the movie stars. Also visiting the Inn were Salvador Dali, Howard Hughes, Frank Lloyd Wright, Ansel Adams and, of course, Eleanor Roosevelt.
Thornton Wilder wrote “The Matchmaker” at the Inn. Rockefeller Jr. wrote a letter to the Inn manager after his stay, “I shall count on your telling me frankly if you think the rate for any subsequent visits should be raised,” which is noted in Conroy’s book. Inn secretary Mary M. Lovelee wrote to Sen. John F. Kennedy’s office in 1958, noting that he had left his bathing suit at the Inn. “One of the great joys of spending time at the Inn has been casually exploring some of the hotel’s informal archives,” said Conroy, whose book is full of historic mementos. “There are the letters from the Roosevelts and Kennedys yes, but far more important to me are the intimate letters and surprisingly preserved scraps of day-to-day life.” Family looks to the future
Though Isabella died in 1953, the Arizona Inn today looks much the way she envisioned it and remains a popular choice for Tucson weddings and events – notably the Silver & Turquoise Ball, an annual, black-tie gala held here since the 1950s. The tables and chairs in the dining room have not changed, but the 1970s brought air conditioning and a remodel to the main building, which included the new Tucson Room and a gift shop. The Inn’s Spalding House was renovated into nine new guest rooms in 2006. And iPads have been added to each guest room, as well as a digital information screen in the lobby. Yet, the historic charm remains. “The Inn is just a physically wonderful place to be every day − to eat and walk and talk and swim and listen and read and think,” said Conroy, who credits the Inn staff for “heartfelt civility” that has persisted since the 1930s. The Arizona Inn has never left Isabella’s family – managed by her son Jack Greenway, then her granddaughter Patty Doar. Conroy, Doar’s son, is the fourth generation to run the beloved hotel and has served as its president since 2005. He still remembers his first visit in 1970. “I was five years old. My uncle Jack Greenway had set up a waterslide on the lawn of the Greenway House at the Inn, where we were all staying. Our family still gathers on the same exact lawn here with a whole new generation now.”
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BizCOMMERCIAL
Revival Roll on a
Broadway Village Mixes Hip & Historic No commercial architecture in this city’s tradition-loving heart embodies the Josias Thomas Joesler style more than iconic Broadway Village, designed for Catalina Foothills developers John and Helen Murphey in 1939. Modeled after the Mexican city of Patzcuaro, Joesler’s revered and richly detailed central Tucson shopping center became the most successful commercial representation of the famed architect’s eclectic vision – and the first standalone shopping center in Arizona. Broadway Village – and its 38,000 square feet of historic space at Broadway and Country Club Road – has been on a rapid economic roll over the past several years. And, now, fresh produce is blending with hip cachet and architectural legacy to make a rousing comeback amid the bustling pedestrian experience already underway. With the recent opening of specialty retailer Natural Grocers as its anchor store, and the Bisbee Breakfast Club also taking space, this rustic, red-brick Spanish Colonial Revival center shifts its renaissance into the highest gear in its 77th anniversary year. Behind the revitalization is CRI Broadway Village Partners – investors including Commercial Retail Investors and the DeConcini family’s 4-D Properties, which purchased Broadway Village from the Murphey Trust in 2008. The partnership has spent several million dollars to restore this treasured Tucson center, committed to embracing its Joesler roots with creative persistence that balances distinctive history and progress. “Our vision elevates the shopping experience, with thriving merchants to create synergy and customer value,” said Craig Finfrock, a managing member and designated broker of Commer54 BizTucson
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cial Retail Advisors and leasing agent for Broadway Village. “We’re bringing back the traditional market of the original village and invigorating the retail mix with a new formula for successful urban redevelopment that incorporates staples, fashion and food.” The revitalization that Finfrock envisioned took significant strides forward over the past few years, in a formula that became more than restoring bricks and mortar. Upscale Avenue Boutique was an early fashion retailer to join the Broadway Village mix. Then there was
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Working on older buildings is difficult, but you can’t buy the charm and history that come with them. You must preserve and nurture it.
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– Page Repp President & Architect Repp+Mclain Design and Construction
the arrival of entrepreneur Ari Shapiro’s acclaimed artisan Falora Pizza, the cozy Sidecar cocktail bar and perennially popular Sushi Garden to pump more life into the plaza along with newcomers Sugar Sweet Bakery and Session Yoga. Historically a gathering place and a pillar of central Tucson community life, Broadway Village is naturally inviting, with its nuances of embellished alcoves, patios, fountains, Spanish tiles and
shops clustered around a market core. Beautiful structures with distinguished arches, decorated details and textured surfaces still stand and remain Joesler’s crowning commercial achievement. All that was missing, it seemed, was a food market like Natural Grocers to create a coherent and vital place around the buzz that has been building in Broadway Village. With its high-quality mix of naturally raised meats and 100 per cent organic produce and dietary supplements, Natural Grocers is a leader in meeting the demands of consumers who want products that are good for them and good for the environment. It may be surprising that this “good4u revolution” started back in 1955, when the founders of Natural Grocers – Margaret and Philip Isely – started selling whole-grain bread and sharing nutrition information door-to-door in Golden, Colorado. For the past 60 years, the company has not strayed from its founding principles of Nutrition Education, Highest Quality Products, Always Affordable Pricing, Commitment to the Community and Commitment to Employees. Today, with the Isely children at the helm, Natural Grocers remains a family-run business, currently operating 112 stores in 19 states, with 15 more stores planned to open this calendar year, including a fourth in Tucson. The enthusiastic devotion of fans, commitment to world-class customer service, attentive good4u crew of nutritional health coaches and knowledgeable staff have made Natural Grocers a successful, unique personality in a rapidly growing green-grocer landscape. The first Natural Grocers opened in Tucson in January 2015 farther east on continued on page 56 >>> www.BizTucson.com
PHOTOS: BRENT G. MATHIS
By Monica Surfaro Spigelman
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BizCOMMERCIAL
continued from page 54 Broadway, the second at Oracle and Orange Grove in September 2015 and the third at Broadway Village in March 2016. Natural Grocers offers an authentic Joesler experience with exposed vaulted ceiling and beam trusses in 15,000 square feet of space formerly occupied by Mexican importer Zocalo and Bon Boutique. Zocalo relocated to a nearby strip adjacent to Broadway Village, while Bon Boutique moved to Five Points at 760 S. Stone Ave. The renovations required to prepare the Natural Grocers shell space was an intense construction project, with preservation of historical aspects adding unique challenges, said Pat Johnson, owner and president of Chestnut Building & Design, the firm responsible for the project. The Natural Grocers space involved three suites originally separated by structural brick walls. “The plan required removing 2,500 square feet of brick walls to have one contiguous space, while keeping the original site-built wood trusses intact,” he said. “Interior bricks were salvaged to use on all of the exterior modifications for Natural Grocers entrances and in-filled openings.” In addition to the Natural Grocers space, the build out for Falora, Session Yoga, Sidecar, Sugar Sweet Bakery and Cashew Cow, handled by Repp+Mclain Design and Construction, needed unique design considerations to align with Broadway Village’s historic character. “In each case, we treated the space as if it were historic, preserving existing brick, the wood ceilings, the concrete floors and many other elements,” said Page Repp, president and architect. “We then enhanced them by sandblasting the brick and ceilings to reveal a warmth and texture that had been hidden over the years. Working on older buildings is difficult, but you can’t buy the charm and history that come with them. You must preserve and nurture it.” Ben Leyva is manager of the Natural Grocers in Broadway Village. “I invite Tucsonans to come visit our beautiful new store, offering a produce department 100 percent certified organic, dairy and meats that come from grass-fed animals who have not been exposed to confinement farming – along with the opportunity to learn more about nutrition education through our local food demonstrations in our community kitchen.” The store is warm and inviting, he said, and creates opportunities for local suppliers. Natural Grocers’ nutrition education programs differentiate the market and engage the community. Finfrock, the Broadway Village broker, said Natural Grocers lends market authenticity and patina to an ambitious renewal plan. Yet there’s more on the development deck. The adjacent Americana Apartments parking lot will be completed later this month, and the Bisbee Breakfast Club – an upscale but traditional breakfast-styled restaurant – will open in September in the space occupied by Table Talk for 30-plus years. Broadway Village “has qualities people lovingly hold on to,” Finfrock said. “We’re committed to encouraging this center’s community and hospitality.” The message is clear. Iconic Broadway Village is revitalized and expanded, fresh and welcoming, and still central to Tucson placemaking – even after 77 years.
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40
Underwood Family Sonoran Landscape Laboratory Completed in 2007 Encompasses 1.2 acres Annual water savings: 230,000 gallons Annual rainwater harvesting: 85,000 gallons 18,000-gallon pond holds endangered species of fish and frogs Represents five habitats of the Sonoran Desert: • Upper Sonoran • Desert Wetland • Desert Riparian • Mesquite Bosque • Desert Canyon Made possible by AAA Landscape and other donors
BizMILESTONE
Still a Thrill After 40 Years
AAA Landscape Celebrates Big Anniversary
Richard Underwood Co-owner AAA Landscape www.BizTucson.com
PHOTO: BRENT G. MATHIS
By Christy Krueger Richard Underwood is an adrenaline junkie. He and his brother and business partner, Bob Underwood, spent their younger years competing as rodeo bull riders. More recently, Bob has discovered the adventure of swimming among sharks in various oceans around the world. But his greatest thrill still comes from running his company, AAA Landscape, which is celebrating its 40th year. The business has become the largest locally owned landscape company in Arizona, with Richard handling Tucson and Southern Arizona and Bob managing the Phoenix office and AAA’s 30-acre wholesale nursery, Arid Solutions. The company also has an office in San Antonio. “I’m wired to be a landscaper since my father’s side is a long line of farmers,” Richard said. His father and uncle came to Arizona after the Korean War and established farms in Sahuarita and Continental Ranch, where, coincidently, AAA later won major landscape contracts. It was in those and other masterplanned communities such as Rancho Vistoso and Dove Mountain that the
brothers found their niche in landscape construction. When the recession hit in 2008 and new construction dried up, Phoenix landscape contractors started coming to Tucson to bid jobs when work here already was in short supply. Once construction took off again in Maricopa County, they left Tucson, Richard said. “I’m optimistic about things,” Richard said. “We aren’t back to how it was, but it was insanity.” To combat the loss of new-build projects, Richard concentrated on maintenance, redesigning AAA’s older properties needing updates, and going back to more residential work where trends were steadily moving toward outdoor living and a more responsible stance on watering. “The emphasis is on sustainable landscaping,” he said. “People are taking out grass and putting in drip irrigation and low-water-use landscaping. After the recession, people moved outdoors. They’re using fire pits, what looks like indoor furniture and shade structures.” Updated technology also allowed continued on page 60 >>> Summer 2016
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BizMILESTONE
Clockwise from left – Richard and Bob Underwood; Bob and Richard 1976 at the first location of AAA Landscape; First office of AAA Landscape. Photos courtesy AAA Landscape
continued from page 59 AAA to go back to its clients to offer something new and simultaneously educate them on the benefits of sustainable practices. “Irrigation systems have evolved,” Richard said. “There are now clocks (timers), such as at Rancho Sahuarita, with 64 stations. And we can program them from our office. Weather satellites give the dew point and humidity so a clock can adjust down. Or if there’s low humidity, it can adjust up to add water.” The AAA staff regularly uses installation methods that promote sustainability, such as positioning plants in strategic locations to save on air conditioning costs. Also, selecting native plants and allowing them to grow in their natural form keeps them healthier, therefore decreasing maintenance needs. While Richard derives pleasure from seeing the evolution and maturing of all AAA properties, the project that is most dear to his heart is the award-winning Underwood Family Sonoran Landscape Laboratory at the University of Arizona. After Richard and Bob both lost sons, they donated the oasis in their memories, as well as their father’s. 60 BizTucson
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The shady, outdoor laboratory sits south of the College of Architecture, Planning and Landscape Architecture in what was once a parking lot. Margaret Livingston, professor of landscape architecture at the college, describes it as an educational garden designed to
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I’m wired to be a landscaper since my father’s side is a long line of farmers.
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– Richard Underwood Co-owner, AAA Landscape
demonstrate conservation practices. An 11,000-gallon cistern on the back of the architecture building collects roof runoff, drinking-fountain water and HVAC condensation, which then irrigates surrounding plants and fills a pond. Excess water from heavy rainfall
also is collected and used on-site. “We’re reusing and keeping it here so it’s not going out into the sewers and creating urban flooding,” Livingston said. In addition, the garden’s lower patio is made with a natural porous material, helping to reduce the urban heat effect. With community frequently on his mind, Richard also was in on the ground floor in creating the First Impressions project. Landscaping and artwork were used to aesthetically improve South Tucson Boulevard between East Valencia Road and Tucson International Airport. A second phase will include solar lighting in the medians, which Richard expects will be completed by fall. And when he’s ready for a break, he sneaks off to exotic locales such as Fiji, Mexico and South Africa for a bit of shark diving. “I needed a sport to find the adrenaline rush but that’s not so hard on my body (as bull riding). You’re so in the moment, it’s so exciting you don’t think about the danger, except when surrounded by great whites. That’s sheer terror.”
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BizCONSTRUCTION
UA Biomedical Sciences Building Beams Over Phoenix By Mary Minor Davis The Phoenix skyline has a new addition as the new University of Arizona Biomedical Sciences Partnership Building was topped out at 10 stories with the placement of the final beam in March. The building is located on the University of Arizona College of Medicine – Phoenix campus at 475 N. Fifth St. and is scheduled to open in early 2017. “This building will foster collaborations with scientists that will lead to more cures, better treatments and bring more federal and private dollars to Arizona,” said UA President Ann Weaver Hart. “All are central to the goals of the Never Settle commitment at the University of Arizona.” The 245,000-square-foot building will house the Center for Applied Nanoscience and Biomedicine. The research center is the latest addition to the Phoenix Biomedical Campus, joining the UA-COM – Phoenix’s original three historical buildings, the Health Sciences Education Building and the UA Cancer Center at Dignity Health St. Joseph’s Hospital and Medical Center. 62 BizTucson
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Michael Jonen, senior associate VP for health sciences, said the university has invested nearly $450 million in the campus in downtown Phoenix. The new building is being built at a cost of approximately $136 million. A joint venture of DPR Construction and Sundt Construction is managing construction. Architects for the project are CO Architects and Ayers Saint Gross. “This is the very beginning of infrastructure investment in Phoenix for this type of growth in biosciences, especially with our partnership with Banner Health and the education program we’ve launched there,” Jonen said. “This is in addition to the nearly half billion dollars the university has invested over the last 20 to 30 years in Tucson’s facilities.” Funding for the building was approved by the Arizona Board of Regents in 2014 using Stimulus Plan for Economic and Educational Development bonds that were approved by the Arizona Legislature in 2008. Nearly 500 jobs in design and construction were created during the buildout, and another 360 permanent jobs
are expected to be created in healthcare, education and biosciences once the building opens next year. “Phoenix and UA are one step closer to our vision of creating a truly world-class and cutting-edge bioscience hub in our downtown,” said Phoenix Mayor Greg Stanton. “The Biomedical Sciences Partnership Building will be a vital piece of that plan that will take translational research, healthcare, medical education and our economy in exciting new directions.” Project Directors Peter Berg and Kent Bosworth whole-heartedly agreed. “The DPR • Sundt Joint Venture is extremely proud to be constructing the landmark BSPB for the downtown Phoenix Biomedical Campus, and to be part of an institution that will serve the State of Arizona for many generations to come.” The medical school in Phoenix has graduated 205 physicians and has 320 students in training in its continuing mission to address the physician shortage in Arizona. The College of Medicine opened its doors in historic buildings in 2007. Biz www.BizTucson.com
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BizBRIEFS
Kimberly Romo Kimberly Romo has been named director of marketing operations at HealthSouth Rehabilitation Institute where she will handle media and communications needs in addition to leading business development. She spent the past four years as a communication specialist at Tucson Medical Center and before that five years as a reporter/anchor for KGUN-TV 9. She made the Tucson Hispanic Chamber of Commerce 40 Under 40 list in 2015.
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Susan Frank Susan Frank has been named executive director of the Employers Health Alliance of Arizona. Frank joins the Alliance after serving as director of health and wellness for the Tucson Jewish Community Center since early 2014. She fills the vacancy created in February by Emily Coyle, who relocated out of state. Frank is a native Tucsonan and a graduate of the University of Arizona.
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BizTECHNOLOGY
G1GABLAST Comes to Tucson
Cox Launches Super-Fast Residential Internet Service By David Pittman Cox Communications is rolling out its super-fast gigabit internet service to residential customers in Tucson. Marketed under the brand name G1GABLAST, Cox will offer speeds 100 times faster than the average speed in the U.S. today. The company already has launched G1GABLAST service to residential customers in 10 states and expects to have it in all its residential markets by the end of 2016. Tucson-area educational institutions, hospitals, research facilities and businesses have had access to multi-gig speeds since 2011, and now residential customers can experience the technology. Tucson Mayor Jonathan Rothschild praised the company for “consistently and aggressively” increasing its investment in its broadband network in Tucson, particularly downtown. “Cox’s ongoing support of nonprofits and education in our community has established the company as a full partner in Tucson’s rising success,” Rothschild said. “I applaud their continued commitment to our community by expanding gigabit services to our Tucson residents.” G1GABLAST will be available to Tucson area residents for $99.99 per month when combined with Cox’s most popular service bundles. The service offers speeds as fast as 1,000 megabits per second, delivering more speed, a power66 BizTucson
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ful home network, and rich broadbandenabled services to customers. The service also includes the latest high-speed wi-fi router and one terabyte of cloud storage, Cox Security Suite and Family Protection, and 10 email boxes each with 15 gigabytes of storage.
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This provides us with an additional tool in our toolbox that makes us more competitive with other markets in the West. – Joe Snell President & CEO Sun Corridor Inc.
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Cox will be demonstrating the service at community events throughout the region and at its retail Cox Solutions stores. “On behalf of the nearly 250 Cox employees in Southern Arizona, we are
excited to deliver the fastest internet speeds in Arizona,” said Lisa Lovallo, market vice president for Cox Communications Southern Arizona. “Gigabit speeds, coupled with the investment of nearly 1,000 wi-fi hotspots in Tucson, are powering economic growth and development for businesses and residents of the communities we serve.” Other Tucson business leaders agreed with Lovallo’s assessment. “Tucson is among the first 30 cities in the country to have this new service and I want to thank Cox for demonstrating the confidence it has in this city,” said Joe Snell, president and CEO of Sun Corridor Inc. “This provides us with an additional tool in our toolbox that makes us more competitive with other markets in the west.” Mike Varney, president and CEO of the Tucson Metro Chamber, also praised Cox Communications for making Tucson investments that increase opportunities for business growth. “Access to ultra-high-speed internet like G1GABLAST is critical to building the vibrant future we all envision for Tucson,” Varney said. “Cox’s investments in Arizona and Tucson over the years have helped us to leverage a network that is fueling local economic development and helping to empower 21st century businesses, schools and homes.”
Biz www.BizTucson.com
PHOTO: CHRIS MOONEY
Cox Contour Upgrades Expand TV Experience By David Pittman
Lisa Lovallo
PHOTOS: COURTESY COX COMMUNICATIONS
Market Vice President for Southern Arizona Cox Communications
www.BizTucson.com
Want to tell your TV where to go and what to do? You can do just that if you’re a Southern Arizona Cox Communications subscriber. After successfully completing customer and employee trials, Cox Communications has launched its next-generation version of Contour, the company’s game-changing television experience that enables the use of voice control remote to change channels, find shows, get recommendations and launch apps. In addition to the television, the cloud-based interface will be available on a new in-home mobile app. The latest version of Contour also enables six different shows to be recorded simultaneously, an enhanced user guide and many other upgrades. “We are always looking for ways to expand and enhance our video experience for our customers,” said Lisa Lovallo, market vice president for Cox Communications Southern Arizona. “After extensive testing, we are confident that this new technology will take Contour to the next level. Customers tell us the voice-activated remote control and the use of graphics and additional program information are a few of the favorite new features.” On-screen advances include a user guide with rich graphics and images, cover artwork and detailed title information for more than 35,000 On Demand choices, and access to TV apps for personalized sports, news and weather. Contour app features contain a second-screen personal video experience with the ability to stream live TV channels and free On Demand choices that are available for iPhone, iPad, Android phones, tablets and PC/Mac web browsers anywhere on the home wi-fi network. DVR features allow users to record six television shows at once and provide 2 terabytes of storage with capacity to store up to 300 hours of HD shows and 1,000 hours of SD shows. It also permits viewers to start watching recorded programming in one room, pause the program and resume watching in another room. In most cases, the updated Contour is priced similarly to current Contour service. However, it does require professional installation. Biz Summer 2016 > > > BizTucson 67
PHOTOS: COURTESY METAL ARTS VILLAGE
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A Marvel Village
BizARTS
of a
Metal Arts Village Fills Need for ‘Starving Artists’ By Valerie Vinyard The term “starving artist” is more accurate than many people think. Artists need supplies and somewhere to create. If they work out of their homes to keep costs down, they often turn to art galleries to show and sell their work. Galleries that show an artist’s work often demand a commission of 30 to 50 percent when a piece sells. It’s a cycle that pushes many artists to raise their prices to cover their costs and generate enough income. That’s changed for some local artists who now have space at the Metal Arts Village in the Fort Lowell furniture and arts district on Dodge Boulevard just north of Fort Lowell Road. The village, which opened in 2010, has given local artists a reasonably priced place to work and show their art in a charming, compact arts village complete with a craft-beer garden and an occasional food truck to draw customers and art enthusiasts. The Metal Arts Village’s 15,000 square feet include a dozen studios in two-story buildings. The village, not surprisingly, lives up to its name and mostly is constructed of metal. “This offers a totally unique vibe that isn’t found anywhere else in Tucson,” said Dave Snelling, a 29-year-old Tucson resident who was taking a break from cycling The Loop and enjoying a craft beer at Tucson Hop Shop. “This is a perfect place for all types of people – from cyclists to artists to beer drinkers.” www.BizTucson.com
Steve Kimble serves as the village’s metal head, if you will. The attorney and one-time high school shop class welder created metal art at his northeast side home. He had looked around for a studio but to no avail. “I knew where to look, but it just didn’t exist,” he said.
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It’s like an incubator for artists to come out of their house. This gets the customer to deal straight with the artists.
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– Steve Kimble Owner/Developer Metal Arts Village
Enter Spider-Man. Kimble had invented a Spider-Man toy – a foam-string spiderweb-shooting glove – and had gotten a patent on it. After he unsuccessfully pitched it to Marvel Comics, he caught the company red-handed marketing a remarkably similar web shooter. Kimble sued and won enough of a payout to call it quits on his full-time law practice.
Kimble purchased a one-acre lot from Copenhagen furniture store and consulted with architects to create his village. Over a few years, Kimble poured in $1 million to $2 million as the village took shape. The groundbreaking took place in March 2008, and the grand opening was January 2010. The village affords artists the chance to rent studio space at reasonable rates, and the artists don’t have to pay commissions when pieces sell. The village, which currently is at full capacity, has studios in three sizes from about 800 to 2,500 square feet. There is a waiting list of more than 20 artists vying for a studio when one opens up, Kimble said. “It’s like an incubator for artists to come out of their house. This gets the customer to deal straight with the artists,” he said, noting that the lack of commission demanded by a gallery allows artists to price their work more competitively. Kimble picks and chooses the artists/ tenants, so there’s not much overlap in styles or genres. The village currently has artists that work in wood, oil paint, stone and glass. Beads of Courage, a nonprofit that provides arts-in-medicine supportive care programs for children coping with serious illness, their families and healthcare providers, is based in the village. There’s even a tattoo artist: Lisa Contreras of Haunted Hands, who has been voted Tucson’s best for years. continued on page 70 >>> Summer 2016
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BizARTS continued from page 69 Stephanie Epperson, 30, and Joe Brown, 31, have shared one of the village’s studios for about three years. Brown of Joe Bro Design carves abstract stone sculptures, while Epperson of Steph E Photography shoots portraits and weddings. Brown grinds out abstract Mobius forms, such as an infinity symbol, using a variety of materials, including marble, alabaster, travertine and chlorite, which is a harder type of soapstone. He grinds and carves his pieces in a dusty studio behind the couple’s shared space. “The people here are what get me really excited,” Brown said. “We call ourselves the Village People. We all work together.” “It’s just different,” Epperson said. “There are places that try to be like this, but it’s just unique. People come in and say, ‘This looks like this should be in Portland.’ ” Kimble’s finished metal sculptures are located in his studio and an enclosed concert venue/sculpture garden in the center of the village. Bands perform monthly on the evening of the full moon and the studios remain open until at least 9
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p.m. Upcoming full-moon evenings are scheduled for June 20, July 19, Aug. 18 and Sept. 16. Behind his studio, Kimble showed off one of his pieces – a grandiose contemporary fountain of a barrel cactus with a water feature that was waiting to be delivered to a home in Tucson National. The painstaking work, which took Kimble a “few months” to complete, involved a massive amount of steel, aluminum and other materials as well as exquisite detail. The best part, Kimble said, was that he was able to price the piece at about $5,000; it would have easily fetched double or triple that amount if it had sold at a gallery. Kimble and the Metal Arts’ tenants like how the village lives up to its convivial name. For example, Kimble likes to put glass in some of his pieces, so he’ll turn to neighbor Ochoa Stained Glass for help. Many artists occasionally trade services to help each other out. Every other month, the artists all gather for a “marketing meeting” to take care of business and other odds and ends. “I want to have really good skilled people here,” Kimble said. “You’ve got to be a good artist, but you’ve got to get along with us.”
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Chapman Automotive Group of Tucson
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PHOTO: BRENT G. MATHIS
Ted Chapman, President Neb Yonas, GM
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BizAUTOMOTIVE
New Home for Honda Chapman Group Goes Extra Mile for Customers, Environment By Dan Sorenson The Chapman Automotive Group of Tucson has doubled down on its commitment to the East 22nd Street new car business with a new, ultramodern and environmental award-winning home for its Honda dealership. The 78,000-square-foot, nine-acre complex is the latest piece of Chapman’s build-out and revamp of the most concentrated stretch of Tucson’s East 22nd Street new-car strip. Chapman dealerships – Honda, Acura, VW, Audi and Porsche – make up the densest section of the strip, which starts with Tucson Dodge, 4220 E. 22nd St., and heads east to include MINI of Tucson and Throroughbred Nissan, the Jim Click Hyundai, Mazda and Ford-Lincoln dealerships at Wilmot Road, Desert Toyota at Kolb Road, and Larry H. Miller Chrysler-Jeep at Pantano Road on the eastern end. Chapman also op-
erates Mercedes-Benz and Sprinter of Tucson at 6350 E. Grant Road. Ted Chapman, president of the Chapman Automotive Group of Tucson, won’t put a price on the group’s flashy new Honda dealership, but he said the project went beyond what American Honda demands of its dealers. Chapman said that Honda, like all manufacturers, requires certain features in its dealerships. The signage and look of the facility announce the presence of a Honda facility to motorists speeding by on 22nd Street. But Chapman said they went beyond the requirements with many custom features – including towering ceilings in the vast showroom and customer service area, huge photo murals with Honda vehicles in iconic Tucson settings, a comfortable customer lounge and some less-obvious environmental
PHOTO:COURTESY CHAPMAN AUTOMOTIVE GROUP OF TUCSON
efforts that earned the dealership an award from American Honda. Chapman Group’s Tucson dealership is the only Arizona Honda dealership listed on American Honda’s Green Dealer website. “We have been awarded the platinum level of the Environmental Leadership Award from Honda,” said Neb Yonas, general manager of the Chapman Automotive Tucson Group. “We’re one of only 12 nationally to have received platinum level certification,” Chapman said. He said major features include a state-of-the-art water recycling system for the car wash and energy efficient LED lighting, inside and out. “This place really lights up at night, but it’s all down-facing,” Chapman said of the well-lit lots. “It’s Dark Skies compliant. Tucsonans like to hear continued on page 74 >>>
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BizAUTOMOTIVE
continued from page 73 those things. I came from Vegas (where) I didn’t see a star for 15 years.” The new facility was designed by Phoenix architect Barry R. Barcus and built by Canyon Building and Design of Tucson. Chapman and Yonas said they’re committed to serving the vast East and South sides of Tucson, including DavisMonthan Air Force Base, which they said is often overlooked as a residential population by Tucson businesses. “We’re committed – and it’s not just advertising,” Chapman said, noting that the group sponsors soccer teams and concerts throughout its service area. “We’re part of the community.” The effort is as much internal as external. “We want our staff to look like our customers, in age, gender and race. It’s changed so much,” Yonas said of his sales staff. “We have mothers, ex-engineers. We talk plain language. Herb Tarlek is not on the showroom floor,” Yonas said, referring to a fictional character – a slippery, glad-handing salesman in a garish plaid sport coat – from the 1978-1982 sitcom “WKRP in Cincinnati.” As part of building a long-term relationship with customers, Chapman said they’re doing things that don’t necessarily make Chapman more money immediately, but provide some added value to customers. “We’re selling tires,” not something to which most dealers give much thought, if any. And though oil changes aren’t a big moneymaker, he said the shop is geared up to do them quickly and for a fair price. The idea, he said, is to have the customer call up “their guy” at Chapman whenever they need something automotive related. And they’re geared up for both traditional “tire kicker” customers and modern internet shoppers. There are a dozen employees – one manager and 11 online sales people – staffing Chapman Honda’s online unit. “Research says people are spending 12 to 14 hours online doing research before they buy,” Yonas said. “For those who want the fast track to a car deal, the internet is there for them.” They’re also geared up for service customers who need their internet while waiting for their cars. In addition to a large and inviting customer lounge − with TVs and comfortable chairs, coffee and soft drink service, free popcorn and the Kids’ Zone play area – there’s a nearby quiet room with cubicles, countertops, outlets and charging ports for people who need or want to stay connected while waiting for service. And while Chapman ducks the question of just how much all this cost, he said it’s all paying off. Just five months after the new facility opened, Chapman said, every department was showing increased sales. And the Chapman Group’s commitment to the East 22nd Street new car empire is not over. Next, Chapman said, is a new Audi dealership on the site of the old Honda facility, putting Audi and Porsche under separate roofs − and another Chapman sign on 22nd Street.
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BizHEALTH
A Bright Light in Hospice Care Casa de la Luz Helps Those Who Need Help By April Bourie In her grief, Lynette Jaramillo couldn’t speak her mother’s name for 10 years after her death. Her mother had gone through the difficult time without health insurance, and hospice had not been an option. But, inspiration came out of Lynette Jaramillo’s complicated grief. She created Casa de la Luz Hospice, the leading hospice service in the Tucson area. Jaramillo said she did not grow up wanting to work in healthcare. She was recruited by a Greater Tucson Leadership colleague for an administrative position with Interim Healthcare, which is where she met and hired Agnes C. Poore, who eventually co-founded Casa de la Luz with her in 1998. When they were sitting on Jaramillo’s back porch planning the company, their goals were to deliver superior hospice care in a unique way, to assemble a group of employees and volunteers with common values and a strong work ethic, and to build an organization that offered security and professional growth to the staff. Today, the organization employs 247 people and has an active volunteer group of about 125 individuals. In addition to providing in-home hospice care, Casa de la Luz offers Tucson’s only residential hospice home and an inpatient unit, a short-term alternative for individuals whose symptoms cannot be managed in a home setting. “This is my life’s dream,” Jaramillo said. “As long as I can think and do, I want to be doing this.” 76 BizTucson
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Jaramillo said one of the important aspects of Casa de la Luz is providing for the needs of the family of the patient. They created the Casa Foundation, which pays for family members’ expenses like transportation and utility payments. The foundation also funds bereavement support and hospice educational programs in the Tucson community. According to Jaramillo, approximately 1,800 people participate in the ongoing sessions each year, and 50 percent of them did not have loved ones staying at Casa de la Luz. Bereavement support is also specifically provided for Casa’s employees and patient families at a memorial that honors those patients who have passed away in the previous quarter. “A friend once told me that hospice is like the Arizona sun. It’s wonderful, but sometimes you have to look away,” Jaramillo said. “We realize that this is especially true for our employees, so we offer them several grief support options.” One of Casa de la Luz’s unique qualities is that it often takes in patients who can’t pay for services. “I know what it’s like to go through a death without health insurance, and I don’t want anyone else to experience that,” Jaramillo said. “The industry is highly regulated by the government, and we definitely have to pay attention to the bottom line, but that can’t be our only measure of success.” What is does measure success in her company, Jaramillo said, is the many
touching thank you notes, emails and calls employees receive. “I also know we are getting it right when someone in the local healthcare community brings their loved one to us,” she said. The number of donations to the Casa Foundation and the names attached to those donations also are important to Jaramillo. More specific measures come in when Medicare sends out a survey that measures the company’s success statistically. Jaramillo’s own inspiration comes from her love for her work. Her desire to be inspirational to others is obvious in her office. The large, maroon wall behind the desk is covered in inspirational phrases. “My father used to hang small pieces of paper all over the house with motivational phrases on them,” Jaramillo said. The wall reminds her of the importance of her hospice services and inspiring her employees as a team to do their best. “We only have one chance to get it right,” she said. “We can’t go back after the patient has passed and try again.” Looking to the future, Casa de la Luz is planning another inpatient unit at The Hacienda at the River, a new Watermark community currently under development at River and Hacienda del Sol roads. Jaramillo said she was honored that her company was asked to participate in the project. It is another opportunity for her to continue to provide vital services for patients who are “at the end of their rainbow.”
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PHOTO: ECHOSTARMAKER.COM
WOMEN WHO LEAD
Lynette Jaramillo
Co-owner & CEO Casa de la Luz Hospice
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BizMEDICINE
Blending Art and Science of Cosmetic Dermatology Skin Spectrum Partners Share a Vision By Mary Minor Davis
Serendipity. It’s a word used by both Dr. Jody Comstock and Dr. Tina Pai in describing how they found each other. The co-owners of Skin Spectrum in Tucson were each on different career paths when they discovered the cosmetic dermatology field. Comstock was on the road to pediatrics. While doing her pediatric residency in Michigan, she took an elective in dermatology. “I discovered I loved skin,” she said. “I thought I would be a pediatric dermatologist. The program at the University of Arizona really lent itself to this field.” She and her husband, Frank, came to Arizona in 1987 so she could do her residency, while he completed his in emergency medicine. This was at a time when the UA was involved with Retin A studies. Lasers were just coming out, treating birthmarks, removing tattoos and enabling other skin improvements. Comstock learned she was very good at those procedures. “My hand-eye skills in doing pediatric procedures – it was a natural for me.” Pai was also on a path to work in medicine, and also took an elective in dermatology that changed the course of her career. “I loved it,” she said. One appeal of the field was it would allow her to work with patients of all ages. After Comstock completed her residency in 1990, she worked in a multidisciplinary practice before starting Skin Spectrum. After Pai completed her education, she opened a practice in her hometown of Honolulu. Then her husband, Mikel Lo, came to Tucson for 78 BizTucson
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training in cosmetic dermatology. In 2000 the couple decided to make Tucson their home. Shortly after, Pai came to Skin Spectrum – and three years later the partnership was born. “Jody is a great leader, a natural,” Pai said of her business partner of 16 years. “She has a great instinct for business and for people. We share the same core values when it comes to patient care, so it works well.” Comstock agreed. “Tina is an amazing partner. She’s intuitive and thoughtful. We have different styles but share a vision – and we’re medically complementary.” Cosmetic dermatology is a relatively new field that took root in the early 1990s, Comstock said. For that reason, both women said they don’t see themselves differently than their male colleagues. “We helped to create who is reflected in this industry, helped develop the culture,” Comstock said. “In medicine, there were different barriers – but in cosmetic dermatology it was more of an open pathway for women. We didn’t have to deal with the glass ceiling. We were cutting a window in the glass ceiling – creating a new space.” As the industry developed, both Comstock and Pai took an active role in learning best practices, spending time to travel to the people who were making new discoveries and studying from them. “We learned from the initiators, the inventors and the visionaries of this industry,” Comstock said. “We have literally grown in this in-
dustry with the advances in skin care. Because of this connection, we have been the first in almost every new procedure and trend in Tucson. “Regardless of what sex you are, it takes passion and perseverance to run a business – and vision,” Comstock said. “We have a long-term vision that includes growth in employees, in Tucson and nationally.” When asked what their patients would say about them, both physicians felt they have earned their patients’ trust. “I treat my patients as if they were my family members, and I think they like the advice and the approach we take in their care,” Pai said. Comstock added, “I would add that I think they see the passion, and the excellent care we give them. I think they appreciate the blending of art and science of cosmetic dermatology.” At Skin Spectrum, Comstock and Pai oversee 28 employees, many of them single moms. As small business owners, they are proud to have created an infrastructure that provides a compensation package that includes health insurance and profit-sharing – but also an environment where their employees learn business skills, customer service, skin care and other skills that will help them grow with the company. All are involved with some philanthropic cause in their personal lives, or with the company as a whole. “We are best when we work together as a team,” Comstock said. “I’m very proud of our team.” Biz www.BizTucson.com
PHOTO: BRENT G. MATHIS
WOMEN WHO LEAD
Dr. Jody Comstock Dr. Tina Pai Co-Owners Skin Spectrum
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BizTECHNOLOGY
Constant Learning A Foundation for Tech Leader By Rhonda Bodfield
Cristie Street learned an important lesson about leadership when she was in the fifth grade. At the time, “because I said so” was a management style that worked pretty well with younger sisters. With her Girl Scout peers, however, it earned her a reputation as a “bossy” patrol leader – long before any movement to recast that adjective in a positive light. “I learned then that if I was going to be a leader, I was going to have to come up with different approaches,” said Street, the managing partner and CEO of the information technology solutions company Nextrio. Launched in 2002, it has grown from its founding three members to 43 employees. While founder Oscar Fowler is a bigpicture, methodical designer, and husband Bill Street is akin to a quick and resourceful M*A*S*H medic, Street’s particular superpower lies in guiding conversations with clients – translating technical IT language into something more accessible and helping them land on a decision that rests somewhere on the spectrum from the ideal to the pragmatic. “There’s not a lot of ‘casual dating’ in technology,” Street said. “You’re either outside the building or inside in their deepest, darkest secrets – and that can be sensitive. I’m always looking for ways to help business owners become more comfortable with these decisions.” Street also spends a lot of time thinking about leadership. She notes a frustrating vacuum that became increasingly evident when a budding leader in the company asked what leadership book 80 BizTucson
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she would recommend. “That was a surprisingly difficult question and I think it’s because we’re in such an interesting time,” she said. “We have experts who are not really experts. They’ve just written a book. And because so many of our leaders end up just defaulting to someone else’s philosophy, I’m not sure we’re taking good advice today.” There is a better option, she believes. Synthesize a couple of different philosophies. Absorb information. Talk to your clients. Know what’s working in the industry. Find inspiration in what’s working in other industries. The pace of technology adds another layer of challenge. “Our employees have to be super excited to work in a business that is not OK with good enough,” Street said. “There is no ‘we’re done, we’ve achieved, we’ve arrived’ in our business. We can have the greatest day today and then come in tomorrow to find new things have arrived on the scene.” She takes that same approach with her board work, where she chairs efforts for the Arizona Public Media Community Advisory Board and the Ronald McDonald House Charities. She also serves on the Tucson Metro Chamber board and is a partner with Social Venture Partners. Street said she serves to give back and to help the nonprofit community, which makes up a large part of her clientele. She is humbled to help drive important organizations. But there’s another reason it’s worth the time investment. “I’m really greedy
about taking these opportunities to learn from someone else’s experience. I always take away something, whether it’s something we should emulate or something we should avoid.” Nextrio also has put significant effort into closing the gender gap in the company given that women are estimated to hold about one-third of the jobs in the industry. About five years ago, the company started working harder to recruit women in technical and leadership positions, in part to reflect the demographics of their customers. Women now make up nearly 50 percent of Nextrio’s staff, and half of its leaders. When company leaders asked women why they stay, they overwhelmingly list work-life balance, flexibility and opportunities to grow – the same things that Street herself values. But there’s also her family, which includes a son, 3, and a daughter, 10. “I also feel it’s my obligation to model what I want to create for others. If I go to leadership land without taking care of my family and myself, then that’s not sustainable.” The success of others is also key. “I don’t separate as much as I should my own success from others. That’s maybe a female thing to do as well. But I would rather feel at the end of my life that I helped 43 other people achieve their goals, whether that’s buying a home, taking vacations, learning a second language or adopting a dog. That’s my reward and my goal.”
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PHOTO: BRENT G. MATHIS
WOMEN WHO LEAD
Cristie Street
CEO & Managing Partner NEXTRIO
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BizTRAINING
Truly a Bug’s Story Leadership Center ‘Cements’ Truly Nolen’s Presence in Tucson By Larry Copenhaver
If you live in a neighborhood, especially one with an active homeowner’s association, leaving old cars with no apparent use parked at the curb might be frowned upon. But Truly Nolen Pest Control has built an empire on just that and recently received Tucson Mayor Jonathan Rothschild’s kudos during the opening of the 12,000-square-foot Truly Nolen Leadership Center where company associates learn effective business practices about the business of pest control. “Over the years, this company has become an international company,” Rothschild said. “This is a big deal to this community. Every time Truly No-
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len brings managers, company leaders and other employees to the new center, they are going to stay at our hotels, eat at our restaurants, shop at our stores – and all that brings in business and a lot of sales tax so I can pay my employees.” The new leadership center, at 434 S. Williams Blvd. in Williams Center, will serve employees from 62 countries – in addition to more than 80 branch offices in Arizona, California, Florida, Nevada, New Mexico, Texas and Utah. Students from local schools will have access to the center for education tours. Lloyd Construction was the builder on the project. Rothschild thanked the Nolen fam-
ily for their loyalty to Tucson and noted that the opening of the leadership center on Feb. 24 coincided with company founder Truly Nolen’s 88th birthday. The Tucson-based company is the largest family-owned pest control company in the United States. “We were excited when we were able to purchase the land and buildings that make up our new leadership center because it is an investment in our people and their ongoing development,” said Truly Nolen President and CEO Scott Nolen. “The leadership center also cements our corporate presence in Tucson, which is particularly meaningful to me as a multigenerational, family-
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owned company.” At the formal ribbon cutting ceremony Nolen said the company decided to keep its corporate headquarters in Tucson at 3636 E. Speedway Blvd. and bring the leadership facility to Tucson from Phoenix. The leadership center includes courtyard and stadium seating, a fully functioning commercial kitchen, garagestyle cookout area, auditorium space for classes, a mock home setup designed to replicate almost any possible pest scenario for training purposes, and a “The Bug Room” for both employees and the public to explore. That Room, complete with live insects in displays along with a pest identifier section, will be used by team members, professionals in supportive industries and youth from school classrooms. “Our employees, franchisees and vendors will be able to travel from all over North America to this campus to learn and train,” said Greg Weatherly, Truly Nolen executive VP. “Our annual managers and franchisees meeting was held at the Leadership Center (in January), and we look forward to helping nearby hotels and restaurants as well as
venues like Old Tucson Studios in the months and years ahead.” It all began in 1955 with a trip down Speedway Boulevard and a relationship with the Tucson community and Truly Nolen, Scott Nolen said at the opening. Truly Nolen came to Tucson and bought a house at the far end of Speedway. “He was recovering from polio and doctors said he would never walk again, so he decided to march down Speedway. Now, you have to remember he was on crutches, so down he came on Speedway,” said Nolen, the elder son of Truly Nolen. “He hit Stone and Speedway and walked into a restaurant and said: “I want to kill your roaches.” After some discussion, the restaurant owner said: “Truly. You need an office on Speedway.” “An office on Speedway?” Nolen repeated. “Yes. I’ll tell you what I’m going to do. I’ll let you use one of my booths as an office, and I’ll even provide a plug so you can plug your phone in and call your customers to set up your day,” the eatery owner said. “So his first office was a booth on Speedway,” Nolen said. “The address was 1025 E. Speedway.”
With an office of sorts, Truly Nolen turned to publicizing his business, and since he loved antique cars, he bought one, took it home, fixed it up, put his name on it and started driving it, the son said. “But it was an old car and it didn’t make it very far. He pulled into a gas station and the steam was coming out. The garage owner said for him to park his car there, and he would fix it. So he rolled his car as close to Speedway as he could get so his name and phone number showed. “People started to call him and his business flourished,” Nolen said. So the antique car advertising, like the company, grew. Today, there are 50 antique cars with the company’s name and phone number parked around Tucson. Later, he got the idea to buy small cars that he disguised as mice. And Speedway was the first road for the disguised car to travel. Like the antique cars, as the company expanded so did the number of mouse cars. Visitors today might see them at branches in Texas, Florida and several foreign countries including France, Saudi Arabia, even Mozambique.
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PHOTOS: BRENT G. MATHIS
From left – Really P. Nolen, Research & Development; Scott Nolen, President; Darlene Cohen, VP of Human Resources; Mayor Jonathan Rothschild; Greg Weatherly, Executive VP; Michelle Senner, Director of Advertising & Marketing; Robert W. Hartley, VP of Safety & Insurance; Justin Bellet, VP of Operations; Chris Maher, VP of Commercial Operations
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PHOTO: BRENT G. MATHIS
BizFINANCIAL
Helaine Levy, Don Jenks and Maura Grogan at the Tucson Botanical Gardens
A Lifeline for Nonprofits Loan Fund Helps Fill Financial Gaps By Monica Surfaro Spigelman When it comes to filling vital needs in a community, local nonprofits often are in the same pinch when it comes to finding sustainable sources of funding to get them through their financial ups and downs. Enter the Nonprofit Loan Fund of Tucson and Southern Arizona – deploying loans and financial education to Southern Arizona nonprofits. It’s all part of a larger story to strengthen local operations, bridge cash-flow gaps and be innovative when it comes to funding worthy causes. Since January 2014, NPLF has allocated close to $1 million in 13 separate loans – to eight different borrowers - all supported by investors including Habitat for Humanity Tucson, Jewish Community Foundation, Community Foundation for Southern Arizona, Business Development Finance Corporation and the Pima and Tucson Industrial Development Authorities. Investors lend money to NPLF at a rate of 2 percent for one to 10 years, and then NPLF makes loans of up to $200,000 to vetted nonprofits, for as long as five years. 84 BizTucson
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There is a large need to deploy capital to nonprofits in ways that allow flexibility while leveraging monies for greatest social and financial impact, said Don Jenks, NPLF board chair and EVP, Regional Credit Administrator, for Bank of Tucson. “NPLF provides a concentration of financial expertise that may be unique in the region,” Jenks said. “We structure each loan to meet the unique needs and payment ability of our borrowers and help them bridge periods when cash is low, to fund programs or support infrastructure.” Initial NPLF board research indicated a large need in the nonprofit community for financial education and loans that don’t qualify for traditional bank lending. A 2015 study conducted by the Nonprofit Finance Fund reported that the top challenge of 5,000-plus nonprofit respondents is long-term financial sustainability, with 53 percent of those responding indicating they had three months or less of cash on hand. Early NPLF board members, such Diamond Family Philanthropies’ Helaine Levy, Bank of Tucson’s Michael Hannley, and CFSA’s www.BizTucson.com
Clint Mabie, looked at the national marketplace to structure Tucson’s fund, attract investors and support Southern Arizona nonprofits. There are several reasons investors value NPLF, said Maura Grogan, NPLF executive director, “One is philanthropic. Unlike a straight donation – investors get their money back after a period of time and can redeploy it either back with NPLF or for other purposes. They also earn a modest return that exceeds what those funds would get if they sat in a checking or savings account. ” All this employs the bold practice of impact investing that “recycles” capital once the loans are repaid. It’s advancing the mission of many organizations, including Tucson Botanical Gardens, whose recent growth had put the nonprofit in a time crunch to complete construction of a new visitor center while opening a new exhibition. TBG Executive Director Michelle Conklin described her organization’s dilemma as one that required both capital and tools to build beyond what a typical loan would provide. For two years Conklin had considered bringing the nationally renowned LEGOS® exhibit of giant flora and fauna sculptures to Tucson, but the large upfront financial commitment came at the same time TBG was looking to complete construction of its new visitor center. The NPLF was able to help TBG accomplish both objectives. “I spent considerable time analyzing the potential economic benefit the exhibit would bring to our nonprofit,” said Conklin. “In the end, the board believed that the exhibit was a calculated risk worth taking.” The NPLF loan process was fast and painless, Conklin said, adding, “The NPLF financial analysis report-back to TBG’s board confirmed that TBG was a good risk. NPLF funding allowed us to leverage the exhibition to the maximum.” Maximize it did. The exhibition helped increase TBG attendance, membership, gift shop, facility rental and café revenue, as well as raise TBG visibility. “We budgeted for a conservative 30 percent increase over the previous year for those profit centers, but in the end, comparing last year to the same four-month period, we saw an 82 percent increase in attendance, 602 new members and a 53 percent increase in gift shop sales,” Conklin reports. TBG needed to take the risk to catapult to the next level, Conklin said. “We simply could not have moved forward without the NPLF.” NPLF continues to evolve as a central resource aligned with the needs of sustainable nonprofits and investment communities. The portfolio of borrowers continues to grow, said Jenks. Additionally, NPLF is growing its pool of investors and collaborating with other lenders in the state and elsewhere to bring more funds to nonprofits. It’s also seeking grants to increase the amount of financial education provided. “What we bring to the table has been missing for a long time,” Grogan said. “We’re addressing philanthropy’s focus on models that demand greatest impact, at the same time helping nonprofits get beyond survival to take risks as innovative businesses do. We’re helping transform nonprofits in ways that stick.”
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Watershed Management Group staff and friends drinking their rainwater for the first time (standing next to underground rain tank). From left – Zach Smalls, Catlow Shipek, Joaquin Murietta-Saldivar, Mark Ragel, Lisa Shipek, Matthew Rotunno, Elva De La Torre and Emma Stahl-Wert
Nonprofit Wins Award for Teaching Sustainable Practices
Group Shows How to Live More Lightly on Earth By Rhonda Bodfield If you’re looking for Arizona’s Greenest Workplace, look no further than a modest midtown “living lab” that works to inspire residents and business owners to reduce their impacts on their environment. Watershed Management Group’s Living Lab and Learning Center wowed a statewide panel that selected the winner of the annual challenge, hosted by Mrs. Green’s World. The WMG headquarters complex, 1137 N. Dodge Blvd., serves as the ultimate demonstration site for ways to live more lightly on the planet. Enough water is harvested onsite, either through rainwater or greywater, that no city water is needed to supply the indoor and outdoor needs of the campus, which supports 10 regular staff members and thousands of visitors to the lush site. A 10,000-gallon tank be86 BizTucson
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neath the campus plaza, along with aboveground cisterns, capture water from 3,200 square feet of rooftop. Solar panels on the main adobe building offset all of the energy needs for that building. The site also employs passive solar through deliberate planting of shade on the north and west and opting not to shade the south side to ensure solar gain in the winter. In the “food forests” on site, greywater sources feed native trees that provide a canopy to protect missionary stock fruit trees of fig, pomegranate and peach, which in turn support the growth of seasonal vegetables such as artichokes, squash and bok choy. The soil on the property is enhanced through mulch and composting toilets onsite. (WMG has created a book for schoolchildren called “Poo to Peaches” – but that’s another story.)
But beyond taking a tour to see the sustainable practices on display, visitors can get first-hand training. In addition to a series of classes, such as how to tap rainwater harvesting rebates or make home laundry-to-landscape easy, the WMG uses a barn-raising model through the Green Living Co-op. Volunteers complete projects at others’ homes throughout the community, learning the skills they need to bring the strategies back to their own homes and neighborhoods. “One of the things that made the Watershed Management Group rise to the top is that they really work in partnership to teach people how to better manage water resources through hands-on learning and workshops on site,” said Gina Murphy-Darling, the voice and creator of Mrs. Green’s World Radio Network. “They’re not selling somewww.BizTucson.com
PHOTO: COURTESY WATERSHED MANAGEMENT GROUP
BizGREEN
thing to consumers, but teaching them how to be part of a sustainable movement.” Executive Director Lisa Shipek said the organization was pleased to earn recognition for its work, which dates back to 2003. Shipek estimates thousands are reached each year in face-toface sessions, either through classroom learning, tours or through the roughly 50 annual Green Living Co-op projects. “It’s important to us to create that ripple effect of learning-through-doing, which really helps knowledge spread through community,” she said. Tucson Water reported last year that water demand has continued to decline locally. Record low gallons per capita usage is actually at the same level of use as 1989, despite additional population growth. Shipek credits community partners, including Tucson Water, for working toward and incentivizing strong conservation practices. “The Tucson community understands we live in a desert and people here really do want to be part of the solution,” she said. “One of the ways we help is to teach practical skills to show how they can implement some of these practices at their homes. It’s beyond turning the faucet off when you brush your teeth. That’s a good first step, but there’s just so much more that can be done. It’s also exciting for people when they can see the benefit in terms of shade, beauty, food production and the reduction in their water bills.” Operating under the premise that if you’re going to dream, you should dream big, WMG’s ultimate – if audacious − vision is to restore the rivers. That’s going to require a shift in how we use water locally, but Shipek said reducing demand for pumped or imported water is an attainable goal, especially given that more rain falls on the city in a year than comes out of taps across the city. “Water is our most precious resource in the desert,” Shipek said. “It really comes down to our quality of life: being able to have access to water for drinking and for our gardens and to address our storm water issues and our urban heat island issues. We all use water and we all have the power and the responsibility to be part of the solution.” Biz For more information about classes, events and tours, visit watershedmg.org. www.BizTucson.com
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BizGREEN
Company Recognized for Greening Up Carpet Cleaning
Mrs. Green’s Opens Scottsdale Office Mrs. Green’s World is headed north of the Gila River. “I think it’s pretty exciting that a Tucson-based corporation is moving up the highway,” said Gina Murphy-Darling, a.k.a. “Mrs. Green,” noting the progression is often the other way around. Mrs. Green’s World, an environmental education platform founded in 2008, uses radio, podcasts, online content and social media to share environmental news and educate consumers about the role they play in promoting sustainability. The new office in Scottsdale will allow the company to better serve clients across the state and in the Southwest region, Murphy-Darling said. “It’s very encouraging to the Mrs. Green World’s team that businesses in the Phoenix area are excited about our message and mission.”
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Biodegradable Product Clean for Environment By Rhonda Bodfield
For Dave Sherman, the owner of Ecological standards in mind, right down to the Green Carpet, Tile & Upholstery Care, his way they dispose of water. It’s a whole packwork is a labor of love. age of consciousness about caring for the Not only does it support his family, but he environment.” said its mission matters, too, by providing Those looking for greener alternatives customers with an alternative to traditional should ask prospective companies whether methods that may be not be so friendly to their products are plant-based or chemicalthe environment. “As a father of two young based. In Sherman’s case, he said the comkids, it’s important to me to do my part to pany uses all-natural, hypo-allergenic prodprotect the environucts that are derived ment,” said Sherman, from plants, fully biowho has owned his degradable and certicompany for a decade. fied by the indepenThe company was dent, nonprofit Green the People’s Choice Seal, which promotes winner of Mrs. safer cleaning prodGreen’s World’s anucts and services. nual “Greenest WorkThe company has place” awards. also moved to paper“More and more, less administration, the consumer is beincluding digital incoming aware of the voicing. toxin levels in our There are some homes,” said Gina customers who may – Dave Sherman Murphy-Darling, who wonder whether the Owner, EcoGreen Carpet founded Mrs. Green’s products work as well Tile & Upholstery Care World. “And when it as other methods. comes down to it, carpet cleaning can be “They’re just as, if not more, effective bedirty business.” cause it doesn’t leave a residue behind, Murphy-Darling said the company’s which just attracts more soil over time,” Sherman said. “At the end of the day, putproducts and practices are unlike traditional ting toxins in your home or business is just ones, which often leave a lingering odor in not a good thing on a number of levels.” the home. A statewide panel selected the company for an award, she said, because “they do everything with the highest ecoBiz
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At the end of the day, putting toxins in your home or business is just not a good thing on a number of levels.
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BizBRIEF
Subaru Sales Event Raises $63,692 for YOTO Tucson Subaru recently presented Youth on Their Own with a check for $63,692. According to YOTO, that donation will help more than 500 teens in the Tucson community graduate from high school. Each customer who purchased or leased a new Subaru between Nov. 19, 2015, and Jan. 2, 2016,
was invited to be part of Subaruâ&#x20AC;&#x2122;s national Share The Love program and could choose to support YOTO. Then Subaru of America donated $250 and Tucson Subaru donated $150 for each Subaru sold. Biz
Pictured from left are: Tom Hoyt, VP, YOTO; Kristyn Conner, Development Coordinator, YOTO; Teresa Liverzani-Baker, Executive Director, YOTO; David Martin, Director of Programs, YOTO; Jeffry Barr, Subaru buyer & YOTO donor; Rocky DiChristofano, Owner, Tucson Subaru; Dr. Bryan Foulk, President, YOTO; Mike DiChristofano, Co-Owner, Tucson Subaru & Board Member, YOTO
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BizBIOSCIENCE
High-Wage Job Growth Projected By David Pittman High-wage job growth in Arizona’s bioscience industry continues to outpace the nation as risk capital investment in the state reached its highest level in four years, according to a newly released comprehensive report. In addition, all measures of bioscience tech transfer at the state’s universities are on the rise, along with increases in startups, invention disclosures, patents and licenses. But the analysis warned that National Institutes of Health grants and bioscience-related academic research spending declined in the latest year of data, raising doubts about Arizona’s ability to maintain the industry’s economic success into the future. The performance report of the state’s bioscience industry was commissioned by the Phoenix-based Flinn Foundation, a philanthropic grant-making organization with goals of diversifying and strengthening the state’s economy and increasing access to health innovations among Arizonans. The study is part of the foundation’s coordination of Arizona’s Bioscience Roadmap, a longterm strategy to guide the state through 2025. Data released in the March 29 report, the first new metrics in two years, was provided by TEConomy Partners, which conducted the research for the Flinn Foundation. Findings contained in the study were discussed at a Bioscience Roadmap luncheon March 30 at the Hilton Tucson El Conquistador Golf & Tennis Resort. “There is evidence of innovation 90 BizTucson
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throughout Arizona and many positive economic signs, as the number of high-paying bioscience jobs continues to increase at an impressive rate,” said Mitch Horowitz, principal and managing director of TEConomy Partners. “However, we are concerned about the declines in NIH grants and R&D bio expenditures. If creative steps are not taken to reverse these trends, the state’s bioscience industry will be hard-pressed to keep growing.” That view was echoed by Ron Shoopman, president and CEO of the Southern Arizona Leadership Council, who was recently named chair of Arizona’s Bioscience Roadmap Steering Committee. “We are very encouraged by the continued growth of the bioscience industry and our best risk-capital performance in four years,” Shoopman said. “But leaders must emerge in the state to make the necessary strategic research investments. If not, we risk falling behind in not only developing new treatments, but in the commercialization of this research, which is crucial for job growth and building a critical mass of companies.” The vision of Arizona’s Bioscience Roadmap is for the state to be globally competitive and a national leader in the biosciences in such fields as precision medicine, cancer, neurosciences, bioengineering, diagnostics and agricultural biotechnology. According to the most recent data available:
• Arizona
added 36,700 bioscience jobs between 2002 and 2014, a 49 percent increase that brings total state employment in the industry (including hospital workers) to 110,410. In comparison, bioscience jobs nationally grew by only 14 percent during the same period. • The average salary of a bioscience worker in Arizona is $61,823, compared to $46,514 for those in the state’s private sector as a whole. Bioscience salaries have increased 50 percent since 2002. • In 2015, Arizona saw its highest level of venture-capital investments for bioscience firms since 2011. The $82 million attracted is the third straight year of growth. However, it represents about one-half of 1 percent of bioscience venture capital investments nationwide, well below the Roadmap’s goal. • NIH funding in Arizona in 2015 was $151 million, down from $158 million in 2014. Since the start of the Roadmap in 2002, Arizona’s NIH funding has grown by 12 percent, compared to 40 percent for the top10 funded states, a percentage Arizona generally had met or exceeded during previous years. NIH grants are considered the gold standard in the biosciences industry. Several major developments occurred in 2015 within the bioscience continued on page 92 >>> www.BizTucson.com
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BizBIOSCIENCE
“
We are very encouraged by the continued growth of the bioscience industry and our best riskcapital performance in four years. But leaders must emerge in the state to make the necessary strategic research investments.
”
– Ron Shoopman, President & CEO Southern Arizona Leadership Council Chair, Bioscience Roadmap Steering Committee
continued from page 90 industry in Arizona that were brought about by partnerships and collaborations involving private-sector companies, Arizona’s public universities, hospitals and research labs. For instance, Arizona State University and Nantworks, led by billionaire physician and entrepreneur Patrick Soon-Shiong, announced they will build a research hub on the Phoenix Biomedical Campus. In another major event, Banner Health completed its acquisition of the University of Arizona health network and is investing in new hospital construction while becoming the academic partner of UA’s medical schools in Tucson and Phoenix. “As the new data show, the investments made during the early years of the Roadmap are paying huge dividends for Arizona today,” said Jack Jewett, a former member of the state Board of Regents and state lawmaker from Tucson who is now president and CEO of the Flinn Foundation. “The ongoing collaboration among our leading institutions has created an opportunity for innovation and for the bioscience industry to continue its momentum through the years.” Bruce Wright, associate vice president for Tech Parks Arizona, said the organization he oversees is focused on recruiting small- and mid-sized growth technology and life science companies to Arizona and helping develop homegrown companies connected with UA research and development. “Over the course of the last 13 years, we’ve incubated nearly 100 companies, and nearly a third of those have been in the life science and bioscience areas,” Wright said.
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BizTOOLKIT What Is Trade Dress and Why Should I Care? Trade dress is a legal term and it refers to the look and feel of a product or its packaging. It’s also a form of intellectual property and it’s central to branding your business. Think of the packaging and design of your laptop, whether it’s a Dell or an Apple. We recognize our favorite sports teams by their uniforms. Builders and contractors recognize fiberglass insulation by its color – for example Owens Corning insulation comes in rolls of pink batts. Think also of the aqua color of the boxes holding Tiffany jewelry and the deep red sole of a highheel shoe sold by Christian Louboutin. Or the stitching on the back pockets of your Levis. These are all forms of trade dress. Trade dress also refers to the total look and feel of the business where the product is sold. The Apple Store is a good example. Other examples are all around us – from hotels and restaurants to auto dealerships and supermarkets to airlines. In these settings, trade dress is nothing less than the total environment, from color schemes to furnishings and their arrangement to the uniforms of the personnel who serve the public. Trade dress is protected under the same set of laws that protect trademarks. Like a trademark, only more so these days, trade dress creates branding distinctiveness. It telegraphs to the consumer that a particular product or service comes from a specific, known and respected business – called the source of origin in trademark law. Trade dress also signals to the consumer that the product or service meets the standards set by the business.
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To be protectable, trade dress must be “inherently distinctive” or possess a “secondary meaning” that the general consuming public associates with a specific business. Additionally, trade dress must be nonfunctional in nature. It’s purely decorative and ornamental. Again, consider the Apple Store as a retail environment. It demonstrates distinctive, immediately attributable and protectable trade dress. And the layout is registered at the U.S. Patent and Trademark Office. Creating value with trade dress
Any business wanting to separate itself from the pack, to stand out from its competition, should create a branding strategy covering packaging, labeling and displays and, when financially possible, the overall business environment. That means having a coherent trade dress. Well-thought-out trade dress can lead to valuable consumer recognition for your products, can catch the attention of new customers, or help generate buzz around the ambience it establishes at your place of business. Like trademarks, trade dress protection can be established through common law under unfair competition laws and, most preferably, through registration with the U.S. Patent and Trademark Office. As always, the assistance and guidance of an experienced attorney is important for ensuring that the necessary steps have been taken to protect your intellectual property rights.
Biz
By Peter Goldman and Ryan O’Neal, Intellectual Property Law, DeConcini McDonald Yetwin & Lacy
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& CONST
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OPMENT
No Slow Down
DOWNTOWN Streetcar Continues To Draw Investors, Development By David Pittman Downtown Tucson continues to be a hub of activity and redevelopment as 22 new residential projects, which could bring more than 1,500 multi-family and single-family housing units, are being built or planned. The mood among local developers, city officials, realtors and downtown boosters is absolutely buoyant – as the first new downtown hotel in 50 years is under construction, as Caterpillar promises to bring 600 jobs over the next five years to its new downtown offices, as the Tucson Convention Center Arena gets a makeover as a future entertainment and professional hockey site, and as new restaurant concepts continue to flock to Tucson’s urban core. Not only are these eyewitnesses to dramatic, positive change downtown, they believe the transformation still is in its infancy and will continue for many years. There remains a shortage of housing downtown, which has a residential occupancy rate of 97 percent. Investment dollars are flowing into downtown as developers and investors are convinced 96 BizTucson
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there is an unsatisfied longing among diverse groups of residents to live in and enjoy the new and exciting urban lifestyle in an area that was widely considered dormant at the beginning of this decade. “We never thought we would see this aggregation of different types of housing all coming in a fairly concentrated period,” said Michael Keith, CEO of Downtown Tucson Partnership. “It tells us there is pent-up demand for housing in the city and it is a demand for all types of housing – affordable housing, workforce housing, luxury rentals, condos, townhouses – everything. “There are 22 projects right now that are under construction, under design or being considered for downtown,” he said. “If half of the projects now in the planning stages are built, it would significantly transform the landscape of downtown.” ‘Enormous impact’ of streetcar
All of the new residential projects being constructed or planned downtown are next to or within easy walk-
ing distance of the Sun Link Streetcar, a $197 million system that runs on a 4-mile route and connects downtown to the University of Arizona, Main Gate Square, Fourth Avenue and the Mercado District west of Interstate 10. “The primary factor in this economic renaissance we are witnessing is the construction and opening of the modern streetcar,” Keith said. “It has had an enormous impact on people who were considering downtown development. It gave them the impetus to pull the trigger. It also made a big difference with underwriters and bankers. “The streetcar is a fixed transportation system, which is very different than a bus system. Developers and financial institutions are willing to invest along something that they know is going to be there for the length of the mortgage.” The development team of Rob Caylor and Art Wadlund were pioneers in the residential wave that struck downtown Tucson, completing construction in late 2013 on One East Broadway, which was the first mixed-use development in the history of downtown to www.BizTucson.com
BizDOWNTOWN
Renderings clockwise from top left − Westerner, Ronstadt Market, City Park, Ronstadt South Tower, AC Marriott, One Forty One South, One West Broadway include parking, retail, office and residential components. The pair is now building a second project across the street at One West Broadway, which will feature 40 apartments, groundfloor retail and enclosed parking. Wadlund said One East Broadway is completely filled and has never had a vacancy. He expects the same at One West Broadway. Diverse tenant mix represents all ages
Although Wadlund and Caylor expected there would be strong consumer demand for apartment units at One East Broadway, they missed the mark when it came to the make-up of the residential tenants attracted to the project. “We thought it would appeal to younger people in their 20s and professionals 30 to 35 years old. We thought we’d have young associate professors, attorneys, doctors, and financial and government professionals,” Wadlund said. “As it turned out, about 30 percent are 65 and older. “We have a couple that moved from the Catalina Foothills, a couple from Green Valley, and a couple from the East Coast. We’ve also got an Air Force
pilot, an FBI agent and a golf pro. Yes, we have young people, too, but we thought it would be all people in their 20s and 30s, which has never been the case. It’s actually a very diverse tenant mix that represents all ages.” Wadlund said the common denominator among tenants flocking to new downtown market housing is they want to have fun. “People like the vibe downtown. There is a lot going on here and people like to take it in and be a part of it,” he said. “They like to park their cars and walk to nearby restaurants or hop on the streetcar and visit Fourth Avenue, Main Gate Square or the Mercado. Downtown has arts and cultural opportunities and entertainment venues and events, such as the Fox, the Rialto, Second Saturdays, and all the other fun stuff that goes on.” Another thing downtown residents want, Wadlund said, is security, which One East Broadway has and One West Broadway will offer. Firsthand view of economic development success
Metropolitan Pima Alliance hosts an annual event called Wild Ride designed to educate people about outstanding
economic development activities. The 2016 event, called the “Wild Streetcar Ride,” was held April 20. It featured a six-hour tour in which about 275 participants loaded up on the streetcar to view firsthand a multitude of economic development success stories happening on the streetcar line and to hear from many of the development, business and political leaders that were influential in making that success happen. Those at the event toured luxurious homes and open-air courtyards lined with shops, restaurants and services within the Mercado District. Next it was off to downtown, where the tour brought people through indoor, patio and rooftop restaurant locations. They heard presentations about Johnny Gibson’s Downtown Market, the AC Tucson Marriott Hotel that’s under construction, and learned of the future for the Ronstadt Transit Center. Before again jumping aboard the streetcar for a ride down Fourth Avenue and a tour of Main Gate Square, came the Wild Streetcar Ride’s most interesting presentation. It was a visit to Tucson Electric Power’s downtown headquarters where Tucson Mayor Jonathan continued on page 98 >>> Summer 2016 > > > BizTucson 97
BizDOWNTOWN continued from page 97 Rothschild, Rio Nuevo Board Chairman Fletcher McCusker, and leading downtown developer Scott Stiteler each provided their insights on the successful economic turnabout downtown. Though Stiteler’s business is in Tucson, he lives in the San Francisco area. He said he regularly flies to Tucson to take care of business matters. “I’ve been coming to Tucson 20 years, a week every month,” he said. Before Stiteler became involved in downtown Tucson, he developed hundreds of lots and homes in the Tucson area. Then Stiteler diversified his development focus to include incomeproducing properties and redevelopment of vintage properties. From 1999 to 2007, he purchased four city blocks downtown that once appeared old, tired and dilapidated, but now appear historic, exciting and profitable. Notable downtown projects Stiteler has been involved include One North Fifth
2016
DOWNTOWN PROPOSED RESIDENTIAL DEVELOPMENT PROJECT NAME
COST UNITS (MILLION)
Aerie Tower
N/A
300
$110
96
Block 175
$50
Cathedral Square
Arena Site
138
$37
75
$18
39
$30
46
Downtown Motor Court $13
44
City Park
Downtown Abbey Five Points Living
One Forty One South Arizona Hotel La Placita
N/A
9
N/A
87
$5
16
N/A
Mercado Row Houses
$4
Monier Apartments
N/A
Mordasini Villas
$3
One West Broadway Paseo Redondo
Platform Site
N/A 9
122 7
$13
40
N/A
N/A
N/A
N/A
Rally Point Apartments
$6
30
The Ronstadt
$140
600
Schoolyard
$3.5 26
Stone Avenue Homes
Westerner West End Station TOTALS
$4
25
$10
50
$30
160
$476.5
1,919
Source: Downtown Tucson Partnership
Apartments, the Hub Restaurant, Connect Co-working, Hub Ice Cream Factory and Proper Restaurant. New European-inspired boutique hotel
The biggest and most important Stiteler project to date does not involve historic renovation, but the development of a high-quality, European-inspired boutique hotel. The AC Tucson Marriott Hotel, which is being constructed by Lloyd Construction, is scheduled to open in the summer of 2017, the first new downtown hotel in 50 years. Stiteler said his new hotel would not have become a reality without the Tucson City Council and city staff, which showed a willingness to “figure out solutions” that worked. He also praised the efforts of a new, reformed and transparent Rio Nuevo District Board, which partnered with Stiteler by providing a $4 million investment establishing Rio Nuevo as owner of the AC Marriott parking garage, a move which helped launch the $34 million project. But Stiteler’s most emotional and moving comments were reserved for Bank of Tucson, which provided financing for the hotel. “I can’t forget the Bank of Tucson,” he said. “To finance this hotel, we probably knocked on the doors of 15 banks. We were turned downed by 14 of them. Then the 15th bank said, ‘Let’s talk.’ We talked for about nine months and eventually they said, ‘We believe in the process and you and your team. Let’s make this happen.’ That was Bank of Tucson (and) it’s the biggest loan in that company’s history, I’m guessing by a factor of two or possibly three.” Economic impact of close to $1 billion dollars
While MPA called its event the “Wild Streetcar Ride,” Mayor Rothschild told those in attendance that the streetcar was actually “a mild ride” that runs at speeds that blend with traffic. “The streetcar has far exceeded all expectations,” Rothschild said. “We put our 1 millionth rider on at 11 months, which was way ahead of schedule. The cars have run without any operational prob-
lems. What has been wild is not the streetcar itself, but the development that has gone around it. That, too, has exceeded expectations.” Rothschild said total public and private investment along the streetcar line has had an economic impact of close to $1 billion dollars, and there is a lot more to come. Rothschild said there are three reasons for the downtown renaissance, which continues to show no signs of slowing down: the streetcar, government economic incentives needed to make downtown investment pencil out, and new leadership that can be counted on from the Rio Nuevo District Board, led by McCusker. Economic incentives and tools helping make downtown investments flourish include:
•
Government Property Lease Excise Tax breaks, which provide up to eight years of property-tax abatement for qualifying projects in Tucson’s Central Business District.
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A Primary Jobs Incentive, which allows up to a 100 percent credit of city construction sales taxes for qualifying expenses and a waiver of building permit fees.
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Site-Specific Sales Tax Incentives, which allow the application of retail-project-generated tax revenues to qualifying project expenses.
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A Downtown Financial Incentive District, which permits a $10,000 building permit fee waiver and a construction sales tax credit for public right-of-way improvements.
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An Infill Incentive District, which provides relief from certain parking, loading, landscaping and dimensional development requirements and a streamlined zoning process.
Improved Rio Nuevo District
McCusker said the Rio Nuevo District Board is now “the model of transparency” for government in Arizona. “If you want to know anything about Rio Nuevo today, punch rionuevo.org into your computer,” he said. “Every check we write is posted in real time to the web. Every contract we sign is posted to the web. Every project we track is posted to the web. There is no secret about anything we are doing anymore. www.BizTucson.com
And we’ve become (economic development) partners, not government sugar daddies.” McCusker said the new, improved version of Rio Nuevo District has about $40 million, “a far cry from the $300 million Rio Nuevo had in its first tenure.” He said the new Rio Nuevo Board “has invested $17 million in downtown projects which has helped create $175 million of downtown economic activity, a 10-1 positive ratio. “What are we doing with your money now? If you haven’t been to the arena, I would encourage you to go down there. It has gone from an obsolete basket case to a world-class arena,” McCusker said. “James Taylor is on his way here and we are negotiating with the Phoenix Coyotes of the National Hockey League to play pro hockey in this arena. None of that would have happened without this renovation.” A few days after McCusker made those comments, the Rio Nuevo District Board unanimously approved a $3.2 million “back-of-the-house” investment at the TCC Arena to build out new locker rooms, weight rooms and other components required to bring professional American Hockey League games to Tucson. The board’s decision came following a presentation by Anthony LeBlanc, CEO and owner of the Arizona Coyotes, a National Hockey League franchise formerly known as the Phoenix Coyotes. The American Hockey League is a 30team professional ice hockey league based in the United States and Canada that serves as the primary development league for the NHL. The Rio Nuevo Board’s action is subject to the approval of the AHL and finalization of an acceptable lease between the City of Tucson and the Coyotes. To assure that Rio Nuevo recoups its expenditures, the board will likely require a $2 surcharge on all hockey tickets sold, and require that the team reimburse Rio Nuevo if it chooses to leave before the lease terminates. The Rio Nuevo Board also expressed an interest in investing in an offsite rink where the team could practice, along with the Arizona Wildcat hockey team, which would double as a public skating rink when the teams were not practicing. Le Blanc indicated the team would be interested in such a public/private partnership conversation.
Biz
Caterpillar Moving Into Downtown Tucson 600 Jobs Could Mean $600 Million Impact By David Pittman Caterpillar, the world’s leading manufacturer of construction and mining equipment, has selected Tucson as the new home of its surface mining and technology offices. The Tucson facility is expected to create more than 600 new jobs over five years, with employees in executive management, engineering, product development and support positions. State economists have estimated Caterpillar’s consolidation will bring a $600 million economic impact to the local community. “This is a huge win for Tucson and the entire region,” said Arizona Gov. Doug Ducey, who on May 3 announced Caterpillar’s move to Tucson. “I’d like to thank the Caterpillar team for their commitment to and confidence in Arizona. I’d also like to thank our partners, the Arizona Commerce Authority, Sun Corridor, Pima County, Rio Nuevo District and the City of Tucson, for their hard work in bringing this project to our state.” Caterpillar has a more than 70-year presence in Arizona. Its existing operations at the Tucson Proving Ground and Tinaja Hills Demonstration Center, both located west of Green Valley, already employ about 300 people. Caterpillar will begin moving employees to Tucson this summer. “Southern Arizona is a growing region known for a workforce rich in mining, technology and engineering expertise, as well as an attractive quality of life for both families and young
graduates,” said Caterpillar VP Tom Bluth. Pending formal approval by state, county and local governing boards, Caterpillar’s Surface Mining and Technology Division will be located in downtown Tucson, which is experiencing a major economic resurgence. In the short term, Caterpillar will lease approximately 40,000 square feet of office space at 97 E. Congress, with renovation planned to meet the unique needs of Caterpillar’s business. Sharon Bronson, chair of the Pima County Board of Supervisors, said the new Caterpillar facility will soon “transition into a new cutting-edge collaborative workspace to allow the Cat engineering and product development and support teams to work closely together.” Tucson Mayor Jonathan Rothschild said Tucson is “an ideal location” for Caterpillar because of Tucson’s “tech companies, our university, our workforce and our proximity to Mexico. It’s a great fit all around and these are great jobs Caterpillar is bringing to our community.” Joe Snell, president & CEO of Sun Corridor, said Caterpillar’s decision to consolidate its mining division here will bring “hundreds of high-paying jobs” to Tucson and “be felt for many years to come.” Caterpillar, headquartered in Peoria, Ill., had revenues of more than $47 billion in 2015.
Biz
789D Large Mining Truck
Tom Bluth VP, Caterpillar Summer 2016 > > > BizTucson 99
PHOTOS: COURTESY HOMEGOODS
BizCOMMERCIAL
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108 Acres Pieced Together for HomeGoods OPMENT
Real Estate Deal Lands Distribution Center, 400 Jobs By David Pittman The real estate deal that brought HomeGoods to Tucson and the resulting construction of its new 800,000-square-foot West Coast Distribution Center near Tucson International Airport is among the largest in Tucson’s history. The Massachusetts-based TJX Companies, which owns HomeGoods, paid more than $9.53 million for the 108acre undeveloped site at 7000 S. Alvernon Way where the huge $75 million complex is being built. The distribution center, which will service the company’s growing network of HomeGoods stores in the Western United States, is expected to open in June and employ 400 people. That number is projected to rise to as many as 900 over the next 15 years. The eventual economic impact has been estimated at $870 million. Yet this economic deal might never 100 BizTucson
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have happened without the creative real estate assemblage masterminded and orchestrated by Robert Glaser, a commercial broker specializing in industrial properties. He’s a principal at Cushman & Wakefield|PICOR Real Estate Services. When Glaser (pronounced Glay-zer) learned that an unidentified Fortune 200 Company was looking for a 100acre site for a new distribution center in the western U.S., he said he had a hunch “the timing just might be right for Tucson.” “When Sun Corridor (formerly known as TREO) put that requirement out I knew they had five or six submittals for 100-acre parcels around the community that could potentially work, including one we submitted from the PICOR office here that we represented.” Ultimately the parcel selected by
HomeGoods was not any of those early submittals. In fact, it was not a single parcel at all, but five different properties Glaser was extremely familiar with on Alvernon Road south of Interstate 10 near an American Tire distribution center and a similar FedEx facility that was then under construction. “I was getting ready for work one morning when it all came to me – one parcel after another,” Glaser said. “It started with a 7½-acre parcel on Alvernon that I had listed for about six years. I had been speaking to the neighboring property owner who owned 25 acres who had some interest in selling. I was moving clockwise around the block. Next up was 20 acres represented by brokers I knew from CBRE, and then another 20-acre parcel that Henry Jacome of H.J. Properties had for sale. And just north of that was 36 acres that Russ Hall and Steve Cohen in my office www.BizTucson.com
“
It was awesome to see everything come together, to persevere and achieve success for the entire community.
”
Robert Glaser, Principal Cushman & Wakefield|PICOR Real Estate Services –
represented. “When I got to the office, I checked the acreage of the entire assemblage and it came out to 108 acres, which was a good size,” Glaser said. All the brokers involved were contacted, though there were a great many doubts that a deal could be made because if just one seller backed out it could scuttle the entire deal. But all the brokers – Jacome, Cohen, Hall, and Robert Delaney and Tim Healy of CBRE – agreed it was worth a try. So Glaser submitted his assemblage of properties to Sun Corridor. “Even though it was a late submittal it was really a good parcel and was contiguous to other distribution facilities at a location with good roads and existing utilities,” Glaser said. “Rob Glaser deserves all the credit for recognizing the opportunity that putting the parcels together created,” said Delaney. “We were in the right place at the right time.” Indeed, as it turned out, the location was just what HomeGoods was looking for. After HomeGoods purchased the properties, Joe Snell, Sun Corridor’s president & CEO, explained that many factors attracted HomeGoods to the site, including proximity to emerging markets in Mexico and nearby access to railroads, interstate highways and the airport. Putting the deal together was not easy. It took about a year from the time the proposal was submitted by Glaser until the parcels were sold. “Some of the deals on the land parcels were easier than others. In fact, some were impossibly difficult,” Glaser said. “But it all did come together.” While the deal Glaser helped orchestrate was among the biggest ever in Tucson, when asked if it was lucrative for him monetarily, he replied, “not so much.” “For me, the only parcel I had listed was the 7.5 acres,” Glaser continued. “But it was very gratifying to me to be a part of a collaboration that included the city, county, state, Sun Corridor and many individuals. It was awesome to see everything come together, to persevere and achieve success for the entire community.”
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BizCOMMERCIAL
Mike Eastman,
Darryl Hawkins, GM & Director of Comcast Operations of Tucson
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PHOTO: BRENT G. MATHIS
Senior Director & Customer Account Executive for Comcast
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Comcast Completes $17 Million Renovation
OPMENT
Nation’s Largest Cable Provider Will Hire 1,100
A building that had become a monument to emptiness is now a state-of-theart facility that will house the largest call center in the nation for Comcast, the largest cable provider in the nation. Comcast held a grand opening on May 5 for the 100,000-square-foot call center after a $17 million renovation of the former American Home Furnishings building at 4690 N. Oracle Road, adjacent to Tucson Mall. This company will bring 1,100 new jobs to Tucson. Comcast officials also announced that wages at the new call center will be competitive and will be considered a high rate within the call center industry. The new Tucson customer support center the company calls a “center of excellence” includes state-of-the-art Xfinity product training labs, video conference facilities, multiple cafeterias, meeting rooms and a fitness center. Arizona Gov. Doug Ducey said Comcast’s decision to locate the call center in Tucson will result in a payroll of $35 million and serves as “one more major signal to the world that Arizona is open for business.” “Comcast’s new presence will bring a $385 million total economic impact to our region through the creation of thousands of new direct and indirect jobs, payroll and capital investment,” said Joe Snell, president and CEO of Sun Corridor, Inc. “The presence of Comcast will show the world we are a serious contender when it comes to
innovative global companies seeking to expand operations in Southern Arizona.” In renovating the old American Home Furnishings building, Comcast qualified to receive the “Primary Jobs Incentive” from the City of Tucson, which rewards companies that bring quality jobs and investment into Tucson. The incentive provides up to a 100 percent credit of construction sales taxes to qualifying expenses − such as job-training, public infrastructure improvements and impact fees. The city also waives building permit fees. To qualify for the Primary Jobs Incentive, a business must invest a minimum of $5 million in facilities or equipment, cover at least 75 percent of employee health insurance premiums, and create 25 jobs that pay average wages of at least $52,400 (other local jobs are paid an average of $45,600). “We are making a big investment in Tucson,” said Darryl Hawkins, GM and director of Comcast operations in Arizona. “We are excited about letting the public know what our strategy is around improving customer services.” Hiring 1,100 new employees in Tucson is part of a new multi-year plan by Comcast to hire more than 5,500 people nationwide to improve its customer experience, develop new tools and technology, create new and improved stores and even includes a pledge to always be on time. In addition to the Tucson cen-
ter, similar customer support facilities have been announced for Albuquerque and Spokane. Comcast representatives’ at the Tucson call center will assist customers with billing and repair questions, as well as sales and customer service issues. The center will also be home to Spanishspeaking employees specializing in social media. Hawkins said the availability of bilingual employees in Tucson was a major reason for Comcast’s decision to move here. A factor in choosing the Oracle Road site was its proximity to bike lanes, bus services and consumer amenities. Although the company will initially hire 1,100 new workers to staff the Tucson call center, Hawkins said Comcast hopes that number will expand to as many as 1,250 over the next few years. He said the hiring of 1,100 new Tucson employees will bring the number of Comcast workers in metro Tucson to 1,240 because the company already has 140 employees who operate from offices at 8251 N. Cortaro Road in Marana. Hawkins, a veteran of the U.S. Marines, also was pleased to speak about Comcast’s national commitment to hire those who have served in the military. As a result, “15 percent of the hires at the Tucson customer-service center will be reservists, veterans and their spouses or domestic partners,” he said.
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PHOTOS: COURTESY COMCAST
By David Pittman
BizCONSTRUCTION
East Side Security Checkpoint and Ticketing Layout
$28 Million Airport Upgrade New Technology, Better Passenger Flow By David Pittman A $28.3 million terminal improvement project will soon get underway at Tucson International Airport to upgrade critical infrastructure, expand security checkpoint areas and create more retail, food and beverage choices. The board of directors of the Tucson Airport Authority approved a construction agreement with Sundt Construction in April for building to begin in June of this year. The project, which is expected to be completed in November 2017, will create an estimated 308 construction jobs. “This project provides us with the opportunity to enhance the customer experience through improved space utilization,” said TAA President and CEO Bonnie Allin. “The larger securi104 BizTucson
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ty checkpoint allows for newer security technology and better passenger flow. The improved concessions will provide a greater variety of food and retail opportunities. This is going to take our airport to another level of excellence, and we’re excited to begin construction.” A key element of the project, which is being called “A Brighter TUS,” will take underused space in the ticketing lobby and repurpose it to create expanded security checkpoints and open up the area to more natural light and views of the airfield. Meanwhile, space on the concourses that has been used for checkpoints will be redesigned for retail shops, food and beverage outlets, business centers and
children’s play areas. A majority of the funding for the multiphased project comes from the Federal Aviation Administration passenger facility charge program, with the remainder coming from TAA. No tax dollars will be used to pay for the terminal renovation. The upcoming redesign reflects the changing world of commercial aviation. For instance, in 2007 there were 12 airlines flying in and out of TIA. Today that number has been consolidated down to only five, significantly reducing the number of ticket counters needed. Also, passengers are increasingly printing tickets, boarding passes and bag tags from home computers and airport continued on page 107 >>> www.BizTucson.com
Did You Know? Tucson International Airport provides: •
New Passenger Composure Area New Security Checkpoint A and A Gates
Nonstop flights to 16 destinations – Atlanta, Chicago Midway, Chicago O’Hare, Dallas-Fort Worth, Denver, Houston Intercontinental, Las Vegas, Los Angeles, Phoenix, Salt Lake City, San Diego, San Francisco, Seattle – plus seasonal nonstops to Houston Hobby, Minneapolis and Portland.
• One-stop
connections to more than 325 destinations around the world.
• •
More than 55 departures daily. Service by five major airlines including the four largest in the nation – American, Delta, Southwest, United and Alaska.
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An annual economic impact of $3.2 billion and nearly 35,000 direct and indirect jobs, according to University of Arizona research. Learn more at flytucson.com
Why Tucson International Airport is a Valuable Resource “I enjoy flying out of the Tucson International Airport. The ease of parking, the hassle-free process of getting to the gate and the time saved not commuting to Phoenix are key to my decision to fly local. We encourage our chamber members to fly from our airport to positively impact our economy and to motivate the airlines to add additional direct flights.” – Lea Marquez Peterson President/CEO Tucson Hispanic Chamber
“From a business perspective, GEICO always tries to support the local economy. We are able to do that for our associate travel as affordably as from Phoenix. The added value of a small airport with tremendous ease and comfort is one advantage. We frequently discuss the ease and service provided by the Tucson airport at the office.” – Martha Furnas GEICO Insurance
“Today’s competitive marketplace demands that Tucson’s business and tourism sectors demonstrate to all the airlines that serve TIA that we’re committed as a community to retaining and growing air service. Without question, adding new nonstop routes, especially from the East Coast, is vital to bringing in new visitors and attracting lucrative group business from the meetings sector, which will make Tucson more competitive.” – Allison Cooper Vice President of Sales & Marketing Visit Tucson Summer 2016 > > > BizTucson 105
BizCONSTRUCTION Why Tucson International Airport is a Valuable Resource “I fly TIA because it’s convenient, faster, less stressful and a much better customer experience than Sky Harbor. Phoenix traffic is unpredictable - one small fender bender on I-10 and you’ve missed your flight. That’s not a risk I need to take.” – Lisa Lovallo Vice President COX Communications
“We encourage our staff to fly from Tucson because it helps build our economy. Filled planes also encourage airlines to expand and open more routes. As a traveler, TIA is so much easier to navigate and park. The parking costs at Sky Harbor are ridiculous.” – Fletcher McCusker CEO Sinfonia HealthCare
“Flying into and out of Tucson just makes good sense – and cents. Fares are comparable to flying out of the next-closest major airport, but getting to Tucson International Airport is a lot easier and a lot more reliable than fighting traffic, wondering if a freeway is shut down or if traffic is just creeping along. And then, who wants to finish a busy day of travel only to fight traffic and drive an hour and a half to get home? Couple all that with the value of a busy executive’s time and flying out of Tucson is a no-brainer. The Tucson Metro Chamber strongly recommends flying into and out of Tucson International Airport for our entire staff.” – Michael Varney President & CEO Tucson Metro Chamber
“If I were asked what the easiest thing that all of business owners could collectively do to help strengthen Tucson’s economy, then I would respond as follows: If all of us Tucson business owners were to mandate that all of our employees fly out of Tucson and not Phoenix, we would collectively bring back $250,000,000 a year into our local Tucson economy. Let’s do it for Tucson.” – Howard Stewart President/CEO AGM Container Controls
“At our company, we always book flights out of Tucson. Getting to the Tucson Airport is always quick and predictable. No long drive to Phoenix or getting caught in traffic. It’s convenient and affordable to fly out of Tucson. We are excited about adding a few new destinations in the coming year.” – Bill Assenmacher President & CEO CAID Industries
“Direct air service is always a top site selection criteria when we talk to our clients about relocating or expanding in Tucson and Southern Arizona. It’s critical to build TIA’s passenger numbers so we can support flights to new nonstop destinations and more flights to existing destinations. For business, it’s all about speed to market and moving people efficiently and quickly.” – Joe Snell President & CEO Sun Corridor 106 BizTucson
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continued from page 104 kiosks, reducing workload and staffing at the remaining ticket counters. To get the construction project started, two airlines will move their ticket counters. American Airlines will relocate to the far west end of the terminal, while United Airlines will move to the east end of the terminal. These moves will occur in late May. Some of the phases for A Brighter TUS will overlap. Phase 1 of the project includes construction in the central terminal area. From June 2016 to October 2017, new concessionaire locations will be prepared. Phase 2 will focus on the relocation of the security checkpoints. From June 2016 to February 2017, the security checkpoints for Concourse B will be relocated to the far west end of the terminal and will be expanded from three lanes to four, allowing installation of additional Transportation Security Administration equipment. Security checkpoints on Concourse A will be moved and expanded from October 2016 to August 2017. New “composure areas” will be created beyond the new checkpoints. These areas will provide seating and airside views for travelers after clearing security. In addition to those areas on each concourse a couple of new amenities will be created – children’s play areas and business centers. “With the business centers we are trying to create spaces that are a little quieter, where business travelers can sit at a workstation, plug into an electric outlet, make phone calls and conduct business while waiting for their flight,” Allin said. “This will not be exclusive or private, but open to anyone who wants to use it.” New carpet and patterned terrazzo flooring in desert colors will be installed throughout the terminal. The project will also include installation of more televisions and greater use of digital advertising within the terminal. Concession construction will be ongoing throughout the project, but new concessionaire concepts will not open until construction is completed. New retail shops are expected to open in December 2017, while new food and beverage operations should begin operating in January 2018. Allin said to give passengers a wide array of options, both national and local businesses will be included in the new, larger list of airport concessionaires. “We’ve been doing extensive outreach for more than a year now to both national and local business because we want a combination of both,” she said. “Some visitors want recognizable chains they are familiar with, while many Tucsonans are familiar with local concepts and want that to be available. We want to serve both constituencies and promote local businesses.” In a related move, TAA has moved its offices from airport property on Plumer Avenue to the third floor of the terminal in an area that is off the beaten track of the great majority of airport visitors. Allin said the move puts TAA staff in closer proximity to its customers, which include airline passengers and airport tenants, and will allow the authority to lease its former headquarters.
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Project: Avilla Sabino Luxury Rentals Location: 3500 N. Sabino Canyon Road Owner: Alta Vista Communities Sabino-River East Contractor: Preferred Apartment Builders Architect: Anderson Studio Architects Broker: Karber Realty Advisors Completion Date: March 2016 Completion Date: Wells Fargo Bank Construction Cost: Estimated $16.2 million Project Description: A community of 130 detached luxury rental homes with energy-efficient features, high-end finishes and private enclosed rear yards.
C.A.T.S. Academic Center Project: Location: 1720 E. Enke Drive University of Arizona Owner: Contractor: Mortenson Construction Architect: AECOM and BWS Architects N/A Broker: Completion Date: October 2016 N/A Financed By: Construction Cost: Estimated $5.5 million Project Description: Life skills, academic success, sports psychology and training for student athletes will be the focus for this new facility.
Del Webb at Dove Mountain Community Center Project: Location: Marana Owner: The Pulte Group Contractor: W.E. Oâ&#x20AC;&#x2122;Neil Construction Company Architect: SHJ Studio N/A Broker: Completion Date: March 2016 N/A Financed By: Construction Cost: Undisclosed Project Description: A 10,000-square-foot community center with fitness, aerobics, social rooms, swimming pool, bocce, tennis and pickleball courts.
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Project: Greyhound Terminal Location: Broadway and Euclid Owner: Rio Nuevo Contractor: N/A Architect: Swaim Associates Architects Broker: N/A Completion Date: February 2017 Financed By: Rio Nuevo Construction Cost: Estimated $1.7 million
Historic Manning House Project: Location: 450 W. Paseo Redondo El Rio Santa Cruz Neighborhood Health Center Owner: Contractor: BFL Construction Company Architect: CDG Architects N/A Broker: Completion Date: January 2016 N/A Financed By: Construction Cost: Estimated $2.1 million Project Description: Project Description: Adaptive reuse of this historic 1904 building to house El Rio administrative offices and foundation offices.
Project: McClelland Hall, Professional Development Center Addition Location: University of Arizona Owner: University of Arizona Contractor: Lloyd Construction Company Architect: GLHN Architects & Engineers/ Gould Evans Associates Broker: N/A Completion Date: April 2016 Financed By: University of Arizona Eller College of Management Construction Cost: Estimated $3.7 million Project Description: The 13,000-square-foot addition will be a one-stop hub for business students and a modern professional development center.
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Project: Strategic Alternative Learning Techniques Center Location: 1010 N. Highland Ave. Owner: University of Arizona Contractor: R.W. Burkel Contracting Architect: Gould Evans Architecture Broker: N/A Completion Date: June 2016 Financed By: N/A Construction Cost: Estimated $1.65 million Project Description: Renovation and expansion of existing SALT Center to support an increasing population of students.
Project: Vail Christian Church Location: 9455 E. Valencia Road Vail Christian Church Owner: Contractor: Lloyd Construction Company Architect: Swaim Associates Architects N/A Broker: Completion Date: March 2016 The Solomon Foundation Financed By: Construction Cost: Estimated $4.37 million Project Description: This 20,000-square-foot, first-phase project includes a multipurpose room, an outdoor amphitheater and nine classrooms.
Jim Click Chrysler Jeep and Jim Click Dodge Ram Project: Location: Tucson Auto Mall Owner: Tuttle-Click Automotive Group Contractor: Concord General Contracting Architect: Acorn Associates Architects N/A Broker: Completion Date: December 2015 N/A Financed By: Construction Cost: Estimated $4.95 million Project Description: Showroom, administrative offices and parking lot renovations of both dealerships.
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Downtown Duo Peach Properties Instrumental in Downtown Redevelopment By Eric Swedlund Given their love of downtown Tucson and their dedication to developing the heart of the city with unique, local businesses, it’s no surprise that Ron and Patricia Schwabe met just down the road from some of their biggest projects. As owners of Peach Properties, the Schwabes have their hands in a host of projects, developing, restoring and managing properties spread across the central core of Tucson. Ron Schwabe established Peach Properties in 1982 and it was in the early 1990s that he and Patricia met at Epic Café, the longtime West University neighborhood favorite. In the two-plus decades since, the couple has grown Peach Properties into a major downtown player – selected in November by the City of Tucson for the crucial 4.7-acre redevelopment of the Ronstadt Transit Center – by having a knack for picking the right projects and right tenants at the right time. Early on, the Schwabes found a natural division of labor based on their individual and complementary business talents. “We’re not competing for the same part of the pie because we both have different talents and skills and styles,” Patricia said. “We try to give each other space to work.” Peach projects have brought a host of new businesses to downtown, from popular hangouts like Sparkroot, Yoga Oasis, Borderlands and Thunder Canyon breweries, Cartel Coffee Lab and Tap & Bottle, to companies like Providence Services Corp., Sinfonía HealthCare Corp, and housing in the Herbert and One North Fifth projects. Along the way Patricia Schwabe 114 BizTucson
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found time to open and operate the Mexico City-inspired Penca Restaurante. And, if anything, the future promises to be busier, with the Ronstadt complex and redevelopment projects set to transform the Chicago Store, the former Bring Funeral Home and the historic La Buena Restaurant. “I came from Portland, Oregon, which had a renaissance in their downtown in the late ’70s, and when I moved to Tucson, I always thought the downtown was destined for that. It just took forever,” Ron said. “Patricia has been great at curating and cultivating the tenant mix in the buildings we did get, which has been good for downtown.” Downtown properties are in high demand now, but it took a good deal of prodding for Peach Properties to recruit new businesses before the boom hit. In 2009, the Schwabes opened Tooley’s on Congress, a café that also functioned essentially as a leasing office for them to meet with prospective business tenants for the One North Fifth project, which opened in 2011. “Being downtown gave us a little bit of credibility to then tell Sparkroot and Yoga Oasis and others that ‘Hey it can happen. We’re here every day, we see the people, we see things changing,’ ” Patricia said. There are so many new businesses downtown now – and many more looking to locate there – that it can be easy to overlook the effort it took to find tenants six or seven years ago, Ron said. “We used to go out and try to hustle tenants from the foothills and from Phoenix and now they’re showing up on their own,” Ron said. “But with tenants
like Sparkroot, Yoga Oasis, Thunder Canyon and Cartel, you would decide that they were good for downtown and just cold call. For probably six or seven years, that was the way you did leasing down here. You had to target tenants and call them and persuade them to move down here. It wasn’t proven. It was pioneer stuff.” Much of Peach Properties’ success hinged on finding the right businesses, with the Schwabes operating on the notion that what excited them would excite others in the community. “It only works if it’s local,” Ron said. “When you go to another city, you don’t want to go to a McDonald’s or a national chain you can see in 25 other cities. The only way to make it stand out is with unique local businesses. People appreciate how much they appreciate what they’re doing. You can’t fabricate that and we love those tenants.” Downtown still has significant needs in terms of residential housing and non-restaurant retail spaces, but Peach Properties is excited about the community that can be created when the right mix of people and businesses come together. “It ultimately has to be somebody that loves the space. I tell people, if the tenant really loves the space it shows,” Patricia said. “They go beyond our expectations what they do with the spaces and create their own world. If people are convinced they want to be downtown, they’ll make it work. I’m always thrilled to see what people come up with.”
Biz www.BizTucson.com
PHOTO: BRENT G. MATHIS
BizCOUPLE
Ron & Patricia Schwabe Owners Peach Properties
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Brown Wins Wyatt Award By Larry Copenhaver Talk about peer review. The Cornerstone Building Foundation handed Concord General Contracting the award for being the year’s top large projects general contractor and Kittle Design and Construction the award for the year’s top general contractor doing smaller projects. In all, eight performance awards were presented at a gala banquet held at the JW Marriott Starr Pass Resort on March 8. The winners were selected from a spate of nominees submitted by local construction companies and construction-related businesses. The organization’s membership includes the American Institute of Architects, the Arizona Builders’ Alliance, the American Council of Engineering Companies, Construction Specification Institute, the National Association of Women in Construction, the Society for
Design Administration, and the Southern Arizona Architects and Engineers Marketing Association. The annual awards program has been a Tucson tradition for 22 years. Southwest Gas was the primary sponsor. “It’s a big deal to receive these prestigious awards,” said Brent Davis, CBF executive director. “I think these are prestigious awards, and they are coveted.” Also coveted is the Jerry Wyatt Community Service Award presented at the banquet. It honors a contractor at large for contributions of integrity and public service to the industry. This year’s community service award went to Nelson J. Brown of J.B. Steel. Here are the winners of the Cornerstone Building Foundation Awards.
Jerry Wyatt Community Service Award
Nelson J. Brown
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The award was presented to J.B. Steel owner Nelson Brown by Janice Wyatt in honor of her late husband. Jerry Wyatt was a contractor and owner of Lange Wyatt Construction, a member of CBF and the Arizona Builders’ Alliance. He was known for his generosity, support of charitable causes and pleasant demeanor. Summer 2016
J.B. Steel, a steel fabricator and erector, provides steel products and associated services. It was founded in 1994 and proudly focuses on quality control and customer service. The company also places a major emphasis on safety training in pursuit of its mission to provide customers with better service, fast delivery and great value.
Ed Marley Architect of the Year Swaim Associates, Ltd.
This firm is a leader in technical standards and demonstrates merit in organizations from the American Institute of Architects to Cornerstone, said emcee and CBF member Dan Cavanagh. “They are everywhere in town, and they have been here for 47 years.” The firm attributes its success to its innovative approaches to fostering community well-being by performing projects such as neighborhood and public facilities.
Chris Monrad Design Consultant of the Year Monrad Engineering
Monrad provides services in consulting electrical. Three partners, Fernando Galvez, Chris Monrad and Joseph Smith, run the firm. Each is a certified electrical engineer. “We could not be more appreciative of the Tucson construction family,” Monrad said after receiving the award. He also praised his father, the founder of the firm, Lawrence Monrad, who is retired.
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PHOTOS: COURTESY OF CORNERSTONE BUILDING FOUNDATION
CBF’s Top Honors to Concord, Kittle
PHOTOS: CHRIS MOONEY
BizAWARDS
Winners of 2016 Cornerstone Foundation Awards
John R. Nyman Large General Contractor of the Year Concord General Contracting
John R. Nyman, president and registered architect, has embraced the use of technology, encouraged creativity among clients and staff and maintained strong relationships throughout the community, Cavanagh said. Concord’s goal is to build a solid foundation based around integrity, improvement, fun, exceptionalism, trust and staying connected.
Jeff Ronstadt Professional Service Company of the Year Ronstadt Insurance
“When you are growing up, you think you’re going to be the football player who catches the ball in the end zone to win the Super Bowl. Who dreams of becoming an insurance agent?” said owner Jeff Ronstadt. But he recalled a time in his youth when he became ill, and he watched his family sell off treasures to pay his medical bills. That, he said, inspired him to provide insurance products to protect the financial status of folks in his community.
Tom Kittle Small General Contractor of the Year Kittle Design and Construction
Owners Tom Kittle and Susan Petrus, who founded the company in 2001, point to their repeat customers as proof they run projects well and exercise diligent follow-through. Kittle, an Amphitheater High School graduate, oversees day-to-day operations; Petrus serves as estimator and project manager. The couple earned bachelor’s degrees in architecture in Oregon. Kittle later received a master’s in construction management from the University of California, Berkeley.
Ken Martinek Supplier of the Year Arcadia Incorporated
“Community, community, community, I’m very passionate about it,” said Ken Martinek, Arcadia’s national sales manager. “Whether it’s a general constructor, subcontractor, architect, developer, owner, facilities manager or university, it’s important at Arcadia that we share their best interests. And Tucson has us paid back, over and over again. That means a great deal to us. Arcadia’s commitment to the architectural and construction community has been recognized for years in Southern Arizona.”
Victor Corella Jr. Subcontractor of the Year Flooring Systems of Arizona
“This feels crazy good, and we are very proud,” said Victor Corella Jr., company president. The win was especially sweet because Flooring Systems was a finalist for the award several times but not an award recipient. He gave special thanks to his father, founder and standing VP Victor Corella Sr. Flooring Systems provides custom flooring and advice to clients to find the right flooring from a myriad of choices.
Ryan Mahoney Owner of the Year Town of Marana Marana is a great place to work and
live, Cavanagh said. “It was the fourthfastest growing city or town in Arizona from 1990 to 2000. Just take a look at the malls, commercial complexes and new resorts.
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BizFUTURE
Innovation Industry Ingredients
Report Paves Way for Bioscience, Technology Growth By Jay Gonzales
A detailed and wide-ranging strategy is underway in Arizona to tap into the hundreds of millions of dollars of venture capital that are invested nationwide in bioscience and technology innovations, drawing in business, political and community leaders throughout the state. Leaders of the Arizona Bioscience Board said they are making sure the 52page report that details the strategy stays
on the radar of everyone involved so it doesn’t become a document full of great ideas without great results. The report – Risk Capital in Arizona: Observations and Recommendations to Accelerate the Growth of the State’s Innovation Economy – was released in March after more than a year of input, meetings and buy-in throughout the state. The outcome was eight specific strategies
Recommended Portfolio of Complementary Strategies for Capital Formation in Arizona 1. Honor the angels. Accred-
ited investors, whether acting individually or through one of the highly acclaimed Arizona groups, are economic development heroes that should be celebrated as such. Already a destination for affluent retired executives, Arizona should cultivate this strength with the best policies and services for angel investors in the U.S.
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associated with academic institutions should receive broad, sustained support. This support should be inclusive of Small Business Innovation Research/Small Business Technology Transfer grant matching programs, university-centric seed investment funds, state business competitions and regional accelerators, for these programs prime the pump for Arizona’s regional innovation economies.
3. Host technology and investor events. Arizona thrives
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at creating memorable events and experiences for visitors. Investor and tech industry conferences provide natural tie-ins with existing tourism initiatives and sports and entertainment that can provide showcase opportunities for the state’s innovation assets and highpotential companies.
4. Connect Arizona companies with investment epicenters. There is a need to aggressively support homegrown companies in their efforts to attract venture capital wher-
ever it is managed. The largest, closest venture investment hub is the greater Bay Area in California; however, connections to investment hubs along the East Coast should also be made.
5. Build a pipeline of investor-ready companies. Improving access to risk capital is the priority need identified in Arizona, however, it is necessary to work diligently and continually on building a pipeline of “investor ready” companies in Arizona. This recommenda-
Arizona Bioscience Board Chairs Mara G. Aspinall Tucson, GenePeeks/Health Catalysts
Mara Aspinall
Ron Shoopman Tucson, Southern Arizona Leadership Council
Members Jennifer Anderson, Phoenix, Wells Fargo
Ron Shoopman
Paul August, Tucson, Sanofi
Taylor Lawrence
that are now in the implementation stage. The first activity is a “mini-investor summit” in early June where the board, in conjunction with the Arizona Commerce Authority, arranged for four to six Arizona companies to meet with four venture capital firms at the 2016 BIO International Convention in San Francisco. “We didn’t do this because we wanted to create a report,” said board co-chair continued on page 120 >>> tion includes the development of venture facilitation models designed to increase the rate of venture capital investment in technology companies within five years of program inception.
zona companies requires bona fide venture capital firms residing in the regional markets and capable of leading syndicated deals with institutional venture capital funds.
6.
8. Create a unified voice for Ar-
Encourage equity participation from public investing entities. Public and private leaders should take a fresh look at addressing any rules and/or customs to allow state participation in best practice risk capital initiatives – on market based pari passu investment terms.
7. Develop Arizona’s venture capital industry. This recommendation will take the most time and capital to achieve, but a truly level playing field for Ari-
izona’s capital formation policy. Aggregating the voices of industry groups, universities, angel investors and state government leaders into a unified chorus is essential for overcoming the challenges that stopped previous efforts short of success. Source: Risk Capital in Arizona: Observations and Recommendations to Accelerate the Growth of the State’s Innovation Economy
Louis Breton, Tucson, Calimmune David Engelthaler, Phoenix, Translational Genomics Research Institute Phil Francis, Phoenix, PetSmart (ret) Tom Franz, Phoenix Greater Phoenix Leadership Michael Garippa, Tucson, SynCardia Systems Harry George, Tucson, Solstice Capital David Hutchens, Tucson, Tucson Electric Power Jeff Jacob, Tucson, Cancer Prevention Pharmaceuticals Jack Jewett, Phoenix, Flinn Foundation Craig Johnson, Phoenix, Heliae Development TJ Johnson, Tucson, HTG Molecular Diagnostics Shaun Kirkpatrick, Tucson Research Corporation Technologies Taylor Lawrence, Tucson Raytheon Missile Systems Dewey Manzer, Tucson, Instant BioScan Judy Rich, Tucson, Tucson Medical Center Eve Ross, Flagstaff, W.L. Gore & Associates Janet Spear, Phoenix, Celgene Scarlett Spring, Phoenix, VisionGate Jeff Trent, Phoenix, Translational Genomics Research Institute Richard Walden, Tucson Farmers Investment Co. Sandra Watson, Phoenix Arizona Commerce Authority Michael Zervas, Flagstaff, Flagstaff Forty
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continued from page 119 Ron Shoopman, president and CEO of the Southern Arizona Leadership Council. “We did this because we have a commitment to building the innovation economy in our region and state. We believe Arizona’s future rests largely on building the infrastructure around this kind of job growth.” The Arizona Bioscience Board was formed in 2014 with the specific goal of making Arizona one of the top five states for the bioscience and technology industries. The board also recognized that access to capital for Arizona companies is critical to the effort and that geography alone puts Arizona in a difficult position.
“
The rise of bioscience in Southern Arizona has brought new technologydriven organizations operating in a dynamic growth industry to the southern part of the state, developments that are welcomed by Raytheon. – Taylor W. Lawrence President, Raytheon Missile Systems
”
The report points out that 70 percent of venture capital is invested in companies in three states – California, Massachusetts and New York – and that 75 percent of all venture capital is managed by firms in those same three states. “I like to call Arizona the diamond in the desert,” said ABB co-chair Mara Aspinall, who also heads two healthcare technology firms. “Unfortunately for a lot of venture capitalists, it’s the hidden diamond in the desert because they don’t know about the strengths of our companies.” A recent report on the state’s bioscience industry commissioned by the Flinn Foundation out of Phoenix showed that Arizona is gaining bioscience jobs at a faster pace than the rest of the nation and that the state’s percentage of venture capital has been growing. The flip side to the venture capital issue is that Arizona’s share of venture capital for bioscience innovation represents about one-half of 1 percent of venture capital investments in the bioscience industry nationwide. Yet the ABB chairs are quick to point out that Arizona has all the makings for a strong bioscience and technology industry with already abundant job growth and three state universities that are putting more emphasis on technology transfer. “We have some advantages in Arizona that other states don’t have,” Shoopman said. “We have three universities engaged in research, two of them extensively, and all three of their tech transfer offices have been ramped up significantly over the last few years.” David Allen, VP of Tech Launch Arizona, the arm of the University of Arizona whose purpose is to transfer the school’s research and innovations into the marketplace, is 120 BizTucson
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hopeful the ABB report will lead to action that will help Arizona’s technology companies as opposed to being another set of good ideas that never come to fruition. “Anything that can bring more capital sources into the fold is positive,” Allen said. “All the things that are part of (the report) are the right things. But there have been many studies over the years and there hasn’t been a lot of change. So maybe this one will accelerate that pace much greater than in the past.” Allen spent 10 years in a similar job at the University of Colorado as associate VP for technology transfer before coming to the UA in 2012. He said he experienced a transformation there that appears to be the exact end result that is being sought in Arizona. “It’s doable,” Allen said. “Boulder went through a major transformation in the decade that I lived there – going from three or four venture capital sources to about a dozen. “You would think there’s a lot of opportunity (in Arizona). It’s good to see community leaders focused on it. I don’t think it is part of the broader business discussion yet. When it becomes one, maybe we’ll have even greater results. There’s a lot to be done.” Shoopman said the buy-in the ABB experienced as it began to produce the report shows a widespread recognition that developing a robust bioscience and technology industry is a no-brainer for the state and that business, community and political leaders are behind the effort. “When we were calling people to ask them if they were interested, the only question was, ‘What day can you come?’ ” Shoopman said. “The people within the state have a willingness to partner with others for the common good. It serves their individual interests but it serves the state’s interests. So that collaborative gene gives us a fertile ground to take on an effort like this.” Key to the buy-in, the co-chairs said, was giving key constituents an opportunity to contribute to the report, make suggestions and add to the conversation. The end report was significantly different than the early draft as valid suggestions were incorporated. “What we did was something unique continued on page 123 >>> www.BizTucson.com
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continued from page 121 to reports in general,” Shoopman said. “We said there are a lot of stakeholders and really smart people so we’re going to vet this report across the state, and we’re going to take as much time as required to make sure that we touch base with everybody who shows an interest in looking at it. So we had a lot of meetings and hundreds of emails and we took input for nine months.” Aspinall said, “I think we met with 18 different groups from chambers of commerce and groups within the innovation economy, to groups in the business world and community groups. And I think we gained the credibility by saying, ‘Oh yes, we should change the report to include that.’ ” Though local tech companies like Raytheon Missile Systems aren’t specifically involved in the biosciences, the focus on finding sources of funding for budding technology companies is welcome news overall. “The rise of bioscience in Southern Arizona has brought new technology-driven organizations operating in a dynamic growth industry to the southern part of the state, developments that are welcomed by Raytheon,” said Taylor W. Lawrence, president of Raytheon Missile Systems. “ABB is playing an important role by heightening awareness of the shortage of risk capital − new investment that is required for this sector of the state’s innovation economy to grow to its potential. ABB’s Risk Capital Report and its blueprint for action, if successfully implemented, can spur growth in the Arizona economy, adding more high-paying technology jobs.” Now comes the hard part – implementation of the eight strategies outlined in the report: 1. Honor the angels (angel investors) 2. Support university technology transfer efforts 3. Host technology and investor events 4. Connect Arizona companies with investment epicenters 5. Build a pipeline of investor-ready companies 6. Encourage equity participation from public investing entities 7. Develop Arizona’s venture capital industry 8. Create a unified voice for Arizona’s capital formation policy
“We’re dividing and conquering to look at each of those to say what does it take for each, how do we prioritize them, and to look at which truly have short-term impact and which have long-term impact,” Aspinall said. Then Arizona has to compete in what is a crowded field nationally and even internationally. “Companies are competing for funding with companies around the country and really around the world,” Aspinall said. “So the quality of the ideas and the people have to be as good as anything anywhere. “Not one of those individual (strategies) alone will do it. A sustained effort and ongoing focus is required to make big strategic shifts. This is a pretty sizable strategic shift for this state.”
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BizRETAIL
Next Generations Are Buying Gen Xers and Millennials Making Their Mark for Retailers
Carlos Alberini Chairman & CEO Lucky Brand Christiana Shi President, Direct to Consumer Nike
By Romi Carrell Wittman Another generation of consumers – the millennials – is making its mark as a purchasing force as the U.S. economy is continuing to gain strength. That’s according to an executive from one of the nation’s leading credit card companies who spoke at the 2016 Global Retailing Conference in Tucson in April. Sarah Quinlan, Senior VP of Market Insights at MasterCard Advisors, told attendees that the millennials – generally defined as the generation born from the early 1980s to the mid-1990s – are “finally moving out. We knew they’d have to buy clothes eventually.” That move out of mom and dad’s basement and into their own digs means millennials are now buying furniture, housewares and other domestic goods, which has helped fuel the nearly 6 percent jump in furniture and furnishings sales over the past year, Quinlan said. Quinlan’s remarks came when retail executives from around the world gathered at Loews Ventana Canyon Resort to read the retail industry tea leaves and determine what the “next big thing” might be. The annual event was hosted by the University of Arizona’s Terry J. Lundgren Center for Retailing and featured a veritable who’s who of speakers representing prominent brands and retailers including Macy’s, MasterCard, Amazon, Walgreens, GameStop, Tues124 BizTucson
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day Morning, Lucky Brand, Intel, Nike and PetSmart. Each provided a take on what’s working – and what’s not – when it comes to attracting and retaining customers in an increasingly fragmented retail space. “You have to respect the past, but embrace the future,” said Macy’s CEO and UA alumnus Terry J. Lundgren, adding that, while the retail world has changed dramatically, the core business of serving customers and meeting their needs hasn’t. In other words, the how of meeting a customer’s needs – ensuring customers can find the products they want and delivering those products into their hands – has changed. Think Amazon and its Amazon Prime overnight delivery options. However, the what – giving customers exactly the products they want at a price they’re willing to pay – has not. Gen X Driving Online Growth
While Quinlan pointed out that millennials have become a purchasing force, there’s another key group factoring into the economy’s growth – Gen X, the generation that was born between 1960 and 1980 – after the baby boomers and before the millennials. “Gen Xers are a big force that we forget about,” Quinlan said. Gen Xers, now middle-aged with families and established careers, are in a position to
buy clothing, furniture and other goods for themselves and their children. Their buying patterns, however, are different than previous generations. They’re buying more and more products online. “The biggest growth in online sales is kids’ apparel,” Quinlan said. “We’re seeing mom logging in at 10 at night and buying clothes for her children.” So, contrary to popular perception, Gen Xers, not millennials, are driving a large part of the growth in online sales. While online sales continue to be a growth area in retail, they are not dominating the industry. “We haven’t moved online as much as you think,” Quinlan said. “We’ve had double-digit growth in online in the last few months, but it’s still not the bulk of retail sales.” While 30 percent of apparel sales and 57 percent of electronics sales are done online, the majority of retail sales are still occurring in traditional “brickswww.BizTucson.com
Terry J. Lundgren Chairman & CEO Macy’s
and-mortar” stores, Quinlan said. In the past year, online sales grew 7.6 percent overall. She said it all means the economy is strong, online sales are growing yet do not exclusively dominate the retail landscape, and there are forgotten markets – Gen X, we’re looking at you – left to be tapped. Quinlan summed it up: “We’re moving closer to where we were.” However, there are some caveats to that statement. Consumers are saving more, spending less
While the economy is finally returning to pre-recession levels, the consumer mindset has not. People still largely view the economy as sluggish and generally are not optimistic about the future – despite the economic indicators showing positive and sustained growth. Why do consumers remain so pessimistic? The Great Recession has taught www.BizTucson.com
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You have to respect the past, but embrace the future.
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– Terry J. Lundgren UA Alumnus & Macy’s CEO
tion of others – and that means jobs. HomeGoods, for example, is expected to employ some 400 people in its first year of operation and potentially up to 900. Lundgren, who kicked off the conference, said he is pleased by what he’s heard from industry experts regarding the positive economic forecast and what that means for Macy’s. But he’s also bullish on the future for another reason – the students in attendance at the conference. Best retail education in the nation
Each year, Lundgren sets aside dozens of seats for students of the Terry J. Lundgren Center for Retailing and on the day of the conference every single one of them was filled. “I’m blown away by their engagement, by the types of questions they’re asking,” he said. “I want my colleagues to see this, the type of students that we have in this program, and to encourage them to recruit here.” It’s why Lundgren, a 1963 graduate of UA, decided to lend his name and support to the Center for Retailing and why he remains steadfast in his aim to build the center’s reputation as “the best of the best.” As CEO of a large department store chain with hundreds of locations across the U.S., it’s Lundgren’s job to look down the road and anticipate what’s coming, and today he’s optimistic not only about the economy, but also the future of retail itself. “We’ve developed the best in retail education in the country (at the UA) and you see that in the caliber of students here today.” And it’s today’s students who are poised to be tomorrow’s executives, managing the ever-changing retail landscape. “We’ll have the best in the industry,” he said with a smile. Biz Summer 2016 > > > BizTucson 125
PHOTO: KRIS HANNING – BIOCOM UNIVERSITY OF ARIZONA
Stacey Bendet CEO & Creative Director Alice + Olivia
them to be risk averse, Quinlan said. She likened it to how people changed as a result of the Great Depression. People now are saving more, spending less and are more apt to live within their means. They learned some very hard financial lessons during the recession, lessons they won’t soon forget. That is not necessarily a bad thing in the big scheme of things, but it does mean retailers have to work harder to provide value and prove to consumers that purchasing a particular brand or store’s goods is a wise use of the consumer’s hard-earned money. Retailers are working furiously to devise new and improved ways to do just that. One of the latest innovations to hit the marketplace is the Amazon Dash button, a little plastic wireless pod that you can stick anywhere in your home. The idea is that you put it near where you use a given product most frequently and, when you’re running low on said product, you press the button and, voila, Amazon delivers more of it to you. It’s a clever idea for products like laundry detergent, razors, beauty products and even groceries like coffee or bottled water. This move is just the latest in Amazon’s overall retailing push. Rachel Mushahwar of Intel said that by 2020 Amazon is poised to have 7.5 million Amazon Prime members. This is significant when you consider that 20 percent of all retail sales are expected to take place online by 2020. Long story short: Amazon has positioned itself to dominate the consumer packaged goods retail market, leaving all other retailers in the dust unless they follow suit with innovations of their own. This is good news for Tucson. Amazon has several distribution centers in Arizona and recently announced sameday delivery for Amazon Prime members in Tucson. The move means Tucson joins the ranks of 27 cities across the United States with same-day Amazon delivery. Given its optimal location along Interstate 10 and its proximity to rail transport, Southern Arizona is home to several distribution centers, including Target.com and the soon-to-be-finished HomeGoods distribution center. The growth in online retail sales and the need for same-day delivery could very well translate into the growth of existing distribution centers and the addi-
Jeff Artzi Owner Vistoso Automotive
Claire Johnson Owner Claire’s Café
Raymond Pisciotta Owner BRAKEmax Car Care Centers
BBB Celebrates Torch Awards Winners
Businesses Recognized for Ethics, Good Neighbor, Customer Excellence By Christy Krueger Started in 2002 as a small breakfast ceremony, the Better Business Bureau’s Torch Awards has matured into a resortworthy gala dinner affair. The May 5 event at Casino Del Sol Resort attracted nearly 450 attendees eager for the reveal of this year’s standout companies. Each year the Torch Awards recognizes a top business in each of three categories: Ethics, Good Neighbor and Customer Excellence. Nominees complete extensive applications that are closely scrutinized by a group of five judges who work together to narrow the nominees down to three or four finalists in each category, and then determine the top three business organizations. The Ethics Award is presented to a business that exhibits trustworthy and honorable practices in all aspects of its 126 BizTucson
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operation. This year’s award went to Vistoso Automotive, a complete auto care facility located in Oro Valley. The core of the business, said owner Jeff Artzi, is putting relationships first and making ethical behavior the basis of everything they do – in hiring, serving customers and contributing to the community. Trustworthiness, honesty and integrity are even written into the company’s policies. For Artzi, part of being ethical is offering the highest quality work possible. This includes proper diagnoses, using quality parts and finishing the work when promised. It means expectations for all team members to represent the company’s values and perform to the best of their ability. As demonstrated in their numerous glowing reviews,
customers truly appreciate Vistoso Automotive’s practice of caring about its customers and putting their safety first. Mike Varney, president and CEO of Tucson Metro Chamber and a Torch Awards judge, offered his view on the deserving winner: “Vistoso Automotive’s commitment to ethical business practices is an elite model. In an industry where trust means so much, it is reassuring to know that there is a car repair business that internalizes and lives Golden Rule-level ethics.” Other Ethics finalists were Plum Windows and Doors, Grail Construction and The Garage Center. Claire’s Café in Catalina received the Good Neighbor Award for community service. Those who frequent the café and art gallery are likely not surprised continued on page 128 >>> www.BizTucson.com
PHOTOS: ANGELA FARUOLO
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continued from page 126 by the selection. Owner Claire Johnson is well known for her above-and-beyond commitment to the Catalina community and areas beyond. “Reading the descriptions of how Claire’s Café has reached out a helping hand to individuals and organizations was an emotional experience for this judge,” Varney said. “Few are the businesses that have the examples of generosity that Claire’s Café has. “It is not likely that we will ever know the true depth of Claire Johnson’s caring for people and giving back to the community because so much of what Claire’s Café does is done simply, quietly and with a good heart – and not for publicity purposes.” Johnson said she believes in paying it forward and has demonstrated that since opening her business in 1986. Her philanthropy spreads from being a friend and supporter for individuals and families in need to leading fundraising activities to helping deserving groups, such as homeless veterans. One of Johnson’s most prominent acts of generosity is her annual Thanks-
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giving dinner at the café. For 25 years she has been providing free holiday meals to anyone in the community who walks through the door. Claire’s take on it all – she’s simply supporting those who have supported the café for the past 30 years. The Good Neighbor runners-up were Bekki Harper Financial and Plum Windows and Doors. While the first two award categories require businesses to be in good standing with BBB, the Customer Excellence Award is open only to BBB Accredited Businesses in Southern Arizona. This year’s award went to BRAKEmax Car Care Centers, a locally owned automotive repair company with 12 locations. The Customer Excellence winner should demonstrate a history of exceeding customers’ expectations, and BRAKEmax earned the award by living its motto to always do things the right way. Owner Raymond Pisciotta said he believes in delivering an outstanding customer experience every time and making professional service a priority. In addition to providing a clean, invit-
ing waiting room with a kids’ play area and wi-fi accessibility, BRAKEmax offers free shuttle service and employs a customer advocate. Each location displays the manager’s contact information, encouraging open communication for customers. The company also strives to prevent complaints before they happen by properly training staff and keeping an eye on reviews through a customer feedback program. Based on the results of last year’s surveys of 4,714 customers, BRAKEmax had a 95.62 percent satisfaction rating, which Pisciotta believes is an industry high. “Many companies preach customer service, but few measure it like BRAKEmax Car Care Centers,” Varney said. “Experts say customer service is what the customer says it is, not what the company says it is. Real-time feedback from real customers to measure customer satisfaction levels demonstrates that BRAKEmax is a customer-centric company if there ever was one.” The three other finalists in this category were Northwest Pet Clinic, Tucson Rolling Shutters and Sunshine Experts.
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PICOR Pancake Breakfast Raises $43,000 for Local Charities The PICOR Charitable Foundation distributed $43,000 back into the Tucson community with awards to 30 local charities benefiting disadvantaged and at-risk youth. The funds came from the 21st annual Pancake Breakfast held last year. The Foundation carries forward a tradition started by the former Palo Verde Kiwanis Club, which raised more than $300,000 over 32 years. Combined with PICOR Charitable Foundation’s growth of the event since 1994, cumulative giving now exceeds $1 million.
2015 Grant Recipients Arizona Friends of Foster Children Foundation Marana Unified School District Family Resource Center Arizona Theater Company Our Family Services, Inc. Assistance League of Tucson, Inc. Pan Asian Community Alliance, Inc. Aviva Children’s Services Project Linus Candlelighters Childhood Cancer Foundation So AZ Shyann Kindness Project Diaper Bank of Southern Arizona Southern Arizona Children’s Advocacy Center Educational Enrichment Foundation Special Olympics Arizona (SOAZ) El Grupo Youth Cycling Sunnyside Unified School District Foundation, Inc. Emerge! Center Against Domestic Abuse Tucson Girls Chorus Girl Scouts of Southern Arizona Tucson Museum of Art & Historic Block Integrative Touch for Kids Tucson Soccer Academy Interfaith Community Services UA College of Education / Worlds of Words JobPath, Inc. Youth On Their Own Make Way
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