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Co mm L $1 e e n em 00K de rcia r l ail SE $3 M AG O M ED D February 2012

Published for SEAGO Member Entities and Strategic Partners

Vol. 2, No. 2

Arizona — 100 Years Later Industries That Aided Statehood Success Still Regional Mainstays By Gary Dillard It took decades for the Arizona Territory to get its heart’s desire — statehood. No matter how much effort — and rhetoric — was put into the quest, Eastern legislators continued to find reasons for denial. The most famous story, most likely apocryphal, about the Eastern outlook on continued on page 6

Regional Centennial Celebrations Cochise County’s Centennial Celebration will begin at 12:30 p.m. on the 14th with a luncheon for officials from around the county. Speaker will be Rebecca Orozco, history instructor from Cochise College. At 2:14 there will be fireworks in the parking lot and the county will join in a statewide ringing of bells. In Sierra Vista, the Henry F. Hauser Museum is reopening with an assortment of displays and guest speakers illustrating life in the Sierra Vista area at the time Arizona was granted statehood. The Historical Society has published a booklet, available online, titled “Our Little Corner of Cochise County 1912.”

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ew Graham County is sponsoring sle tte a parade on Saturday, Feb. 11, on Co r Main Street in Safford, starting mm Pris spo ns m at 11 a.m. The theme is or Gr Next unic : “A Century of Progress.” e With the news of statehood coming from the pen of President Taft, Bisbee residents took to their automobiles and raced around downtown celebrating. The battle for statehood had begun long before the towns of Southeastern Arizona were incorporated. (Photo courtesy of Bisbee Mining Museum.)

Greenlee Historical Museum, 299 Chase Creek St. in Clifton, will be celebrating the centennial on Feb. 19 with a “birthday party” from 2-4:30 p.m.

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M a lee ont tions Co h: un ty


Warren, The City Beautiful Bisbee-Area Community Seeking Placement on Historic Register By John Charley Mention the City of Bisbee, Arizona and the majority of people immediately visualize the well maintained historic mining town of houses and commercial buildings clinging to hills and canyons in an almost magical way. However, there is another section of Bisbee that holds an equally prominent place in the history of Arizona and the nation: Warren. The Warren District, the first planned community in Arizona was designed by the famed American city planner Warren Manning. Using the principles of the City Beautiful Movement with a goal of providing a safe, clean and holistic living alternative to the highly industrialized town of Bisbee, Manning created a series of streets, underground utilities, electric trolley car system, a grand central park, and a mix of craftsman style homes that fan out and converge at the Warren Baseball Park. The Warren Baseball Park may be America’s oldest professional baseball field and the oldest consecutively used ballpark in America. Role in 1917 deportation In addition, Warren is the site of the 1917 Bisbee deportation of copper miners and citizens; a major event in the nation’s labor history that reached all the way to the Supreme Court of the United States. The Warren neighborhood continues to play a vital role in the City of Bisbee and with the assistance of the Arizona State Historic Preservation Office, community volunteers and Ryden Architects has prepared a submission to the Secretary of Interior for the Placement of Warren on the National Register of Historic Places. Today Warren is home to Bisbee City Hall, the Copper Queen Community Hospital, Chiricahua Community Health Center, the Boys and Girls Club and the nearby Bisbee Municipal Airport. Each year Warren plays host to the City’s Fourth of July celebration, the Farmers Market at Vista Park on Saturdays and the continued on next page The Turning Point Monthly, February 2012, page 2


What is a Foreign Trade Zone? By A’kos Kovach After a brainstorming session a few months ago, I began researching Foreign Trade Zones (FTZ) and found literally hundreds of reasons and thousands of examples of what an enormous economic impact an FTZ has to offer. First some background — An FTZ is a geographical area, adjacent to or near a Port of Entry (such as Naco, Nogales and Douglas.) Commercial merchandise, both domestic and foreign, receives the same Customs treatment as if it were outside the commerce of the United States. What does this mean? Merchandise of every description may be held in the FTZ without being subject to customs duties or other ad valorem taxes. FTZs were created by the Foreign Trade Zones Act of 1934, which intended to “expedite and encourage foreign commerce” in the United States. There are only about 250 general-purpose FTZs and over 450 subzones approved.

Warren . . .

Annual Bisbee Blues Festival. Given this combination of history and current community activities it is the hope of the City that this national honor will inspire new economic opportunities, increase property values and promote a quality of life that was originally envisioned in 1906.

Is issued at the beginning of each month by the SouthEastern Arizona Governments Organization Economic Development District. 118 Arizona Street, Bisbee, AZ 85603 (520) 432-5301, economicdevelopment@seago.org To subscribe, visit www.seagoedd.org A’kos Kovach, publisher and editor Margaret Dillard, copy/graphics editor Items for publication are welcomed from SEAGO member entities and strategic partners. Copy must be submitted at least 7 business days prior to the end of each month.

Or, in other words, FTZs are few and far between and present great opportunity and value to the communities they serve. There are only seven FTZs in Arizona. What sort of value? Businesses that are currently importing or exporting know the value of relief from inverted tariffs; duty exemptions on re-exports; weekly entry savings and duty deferral. Or, in simple terms — Customs duty is deferred until merchandise is imported from a Foreign Trade Zone into the United States. So, instead of companies having substantial monies tied up in Customs duties on their inventory, they have use of that money for other purposes. If the merchandise is sent overseas or to a neighboring country like Mexico or Canada then there are no fees, because the merchandise never “entered” the United States. Further, here in Arizona, businesses located in a FTZ or sub-zone are eligible for up to an 80 percent reduction in state real and personal property taxes! These savings are substantial and thus attract important trade operations, ware-

housing, manufacturing, assembly, etc. to FTZs. FTZs attract both local and foreign investment, often adding hundreds of new jobs and millions of dollars in payroll dollars which then have an economic impact multiplier that surges throughout a community or region. An active, well-organized, properly managed FTZ will attract new employers, increase sales tax collections, bed tax and serve as an economic catalyst. Keep your eye on these pages for more news about FTZs in the SEAGO region. Questions? Comments? Economicdevelopment@seago.org

Click here for the Nogales International’s story about the men above and FTZ 60.

ACA Launches Arizona STEP Program With funding under a grant from the U.S. Small Business Administration (SBA) and matching funds contributed by the Arizona Commerce Authority (ACA), ACA has launched Arizona’s State Trade and Export Promotion (STEP) program, which will be undertaken with public and private sector partners in Arizona. The STEP program will assist Arizona small businesses (defined as those with less than 500 employees) to enter export markets for the very first time or to expand into new markets. This will enable these businesses (which account for 98% of the businesses in Arizona) to increase their revenues via international sales and to thereby be even more significant engines for job creation and economic growth in Arizona. ACA’s STEP program will be offering a number of services and tools to Arizona small businesses as they go global for the first time with their sales or enter new in-

ternational markets. Through various types of technical assistance/capacity building and levels of financial assistance, the continuum of services and tools offered under the STEP program include: •  Export readiness assessment of your small business; •  Export education and counseling for your company so that you can be informed and equipped for success on the international stage (this will be done via education/training workshops, seminars and webinars); •  Assistance with market selection strategy for your company so that it explores and enters markets that are best suited for your product or service; and •  Assistance to your company with development of international marketing materials, including brochures and websites (and translation, if necessary.) Get more details and forms

The Turning Point Monthly, February 2012, page 3


County unemployment continues to drop

Regional Events

By Robert Carreira According to figures released by the Arizona Office of Employment and Population Statistics, adjusted for seasonality by the Cochise College Center for Economic Research, Cochise County’s unemployment rate in December declined from 8.1 to 8 percent, its lowest level since November 2009. Statewide, the unemployment rate in December stabilized at 8.7 percent. According

Feb. 7, 8-3, Pinal Partnership is presenting the “Renewable Energy Economic Summit and Conference” in Casa Grande. Information. Feb. 11, 10 a.m. - 2 p.m., Douglas Williams House will hold an opening reception for its new exhibit, “Douglas in the Electrified Generation of the 1920s.” Feb. 11, 6-9 p.m. at the Copper Queen Library in Bisbee, the Friends will host the 21st annual Valentine’s Day Chocolate Tasting. Cost is $10 per ticket.

to the U.S. Bureau of Labor Statistics, national unemployment dropped from 8.7 to 8.5 percent, its lowest since February 2009. City-level seasonally adjusted unemployment rates for December were: Benson, 14.1 percent; Bisbee, 8.9 percent; Douglas, 12.3 percent; Huachuca City, 11.6 percent; Sierra Vista, 4.9 percent; Tombstone, 5.5 percent; and Willcox, 12.2 percent. Read more about unemployment

Feb. 16, 11:30 a.m., Douglas School Office, 12th and A, Jerry V. Proctor, Deputy to the Commanding General, Fort Huachuca, will present “Fort Huachuca Update and Future Vision.” $10 per person. RSVP to (520) 456-6818. Feb. 22, from 9-noon, Cochise College SV Campus will host an SBA Lending Fair in Room 900. Five banks are scheduled to attend. Admission is free. Feb. 29, 5:30-7:30 p.m., Patagonia Town Hall, Local First Arizona is presenting a class on “Search Engine Optimization.” On March 1, 8-10 a.m., there will be a class on “Social Media.” Admission is free. March 1, 11:30 a.m., Patagonia Library, “The Value of Buying Local” will be the topic of a brown-bag lunch and discussion with Kimber Lanning of Local First Arizona. Admission is free.

Online Articles

➢ Incubation Inc.: Arizona Center for Innovation moves to upgraded facilities, expands programs to help startups get off the ground. ➢ The Arizona Daily Star’s article on Arizona and the UAS opportunity. The Turning Point Monthly, February 2012, page 4


Rural Businesses Using Local Talent To Build Online Presence Slowly but steadily, businesses, nonprofits and governments in the SEAGO region are learning the value of a strong online presence. Many of those who haven’t had this exposure are now dipping their toes in the water — though some are jumping in bodily — and those with an existing website or blog are upgrading to the latest technologies. In the midst of this information/marketing paradigm shift is Bisbee-based Prism Communications, which has been providing traditional and “new media” solutions throughout the region for the past 20 years. “My passion is video,” says owner Margaret Dillard, “which is at the heart of both the traditional media — television — and the new — YouTube and its feeds to websites, blogs, social media and mobile devices.” Her partner in the business is husband Gary Dillard, who has been a newspaper and magazine editor in the region for most of his life. He, too, has adapted the written word to the different venue of new media. “With a magazine, once you publish, that’s it. With the internet, you can continually update and add new information after getting almost instantaneous input from readers,” he said. “It doesn’t get any better than that.” Rural doesn’t mean remote While Southeastern Arizona may be rural, it doesn’t have to be remote. With the advent of high-speed internet, the region’s attractive lifestyle has drawn numerous business owners who can live here and work and do business anywhere in the world. And those who had, or who are opening, brick-and-mortar business are quickly seeing the opportunity to market and spread their businesses to a much wider audience. Cochise College and its Small Business Development Center have been quick to support this transition and on a timeframe that has paralleled Margaret’s move of her business into website design, social media, online video and similar fields. Mark Schmitt, director of the SBDC, approached Margaret early in 2011 to teach classes on the various subjects of doing business online. At earlier seminars Schmitt had put together, Margaret had presented on the sub-

Some of Prism Communications’ recent websites

Town of Patagonia SEAGO EDD True Power Effect CCAH Cake Auction ject of video in marketing, drawing on her skills gain in years of producing the Focus on Bisbee project for Channel 2 in Bisbee and Cochise County TV, a local-interest program that ran throughout the region. Schmitt knew that Margaret had expanded into online development as the market had begun to grow locally and she and Gary agreed to present classes on social media, blog development, video and the like. Strong interest in video “I was amazed at the interest in using Facebook and LinkedIn for marketing and using WordPress to develop blogs,” she said. “But what really astounded me was the interest in do-it-yourself video. “Video can be expensive to make, but with an inexpensive Flipcam — or even the camera on your iPhone — you can create exciting content for your online presence. “It requires relatively little training to take advantage of free or low-cost software to make really adequate videos,” she said. Margaret started making website using high-end software such as Adobe’s DreamWeaver, but the learning curve was too steep to allow any but the most dedicated website builders to take advantage of its almost limitless functions. “Most people, we have found, have pretty basic expectations about their web pres-

ence: They want someone else to set it up, but they want the day-to-day changes to be simple enough to do in-house. “With these criteria in mind, we’ve move almost all of our development over to WordPress, a blogging platform that is responsible for more sites on the internet than any other content management system.” Prism Communication still builds sites for most of its customers, and for a few it even manages day-to-day changes, “but most businesses and non-profits really like the fact that they can do all the changes themselves, from something like posting new hours to writing about new product lines and services,” Margaret said. Times, they are a-changin’ Margaret says that because technology is changing so fast that she and Gary spend about 1 hour on their own education for each 3 they spend working with customers. “We’re currently working out ways that both businesses and communities as a whole can take advantage of QR, or quickresponse, codes, which you can find everywhere in the bigger cities. “Now that most businesses are ready for PC-based business, we have to move them on along to mobile devices, such as cell phones and pads, so they can stay current with their customers’ needs.

The Turning Point Monthly, February 2012, page 5


continued from page 1 the value of the arid West came about when one statehood advocate — variously attributed in different narratives — said that all Arizona needed was water and a few good people. An Easterner, also variously named, replied: “Sir, that’s all Hell needs!” When success finally came in the months leading up to that celebrated day when President William H. Taft finally signed the legislation, Feb. 14, 1912, it was in no small part due to the yeoman efforts of many people in what is now the SEAGO region. And it was the industries that still contribute extraordinarily to the area’s success that played an undeniable role in getting Congress to change its mind. Crime across the border From times before Arizona became a

part of the United States, and before a border even existed, the region was rife with the illegal type of commerce. Trade routes generally ran north-south, because that was the trending of the mountain ranges. Once a border was created, this crime was even more prevalent. The most famous historic event in the region, the “Gunfight at the O.K. Corral,” has in its origin hints of cattle rustling in Mexico by those considered the “bad guys” at the gunfight. Arizona finally create a Ranger corps to combat this crime. Legislated into being in 1901, the Arizona Rangers were mandated to have their headquarters in the most crime-striken part of the state. Over its nine-year life, the group was always on the border, at Bisbee, Douglas and Naco. But it got the job done and undoubtedly that was noticed in Washington.

Marvellous minerals, like this malachite from Bisbee, were found at mines throughout the region and were displayed at many world’s fairs, drawing attention to the riches of Arizona. (Photo courtesy of Roger Weller, geology instructor at Cochise College.)

There was good trade, too. Though Mexico had sought east-west rails to cross the mountains and unify the nation, U.S. railroad builders had driven them north-south, because Mexico had resources and the United States had markets. (This would be a major factor leading to the Revolution in 1910, but that’s another story altogether.) These rails came up through Nogales in the 1880s and later into Douglas, bringing great agricultural and mineral wealth. In the ensuing 100 years, little has changed. Man, that mineral wealth Arizona produced important amount of silver as early as the Civil War — that’s why the area became a territory. Sylvester Mowry’s mine near Nogales and Patagonia did its share in winning that war (and a huge silver mine is now being planned nearby.) But the great wealth was — and still is — in copper. Beyond just the real wealth, the state was aided by the perception that traveled the world in the form of fabulous mineral speciments from the Morencis and Bisbees of the territory. These minerals, when displayed at world’s fairs, were great calling cards for Arizona’s plea for statehood. Let’s not forget the Army From soon after the Gadsden Purchase in 1853, military bases were established in the region, first near Nogales, then in Graham and Cochise Counties as well. While these early bases were a burden on the Eastern taxpayer, later bases such as Fort Huachuca were important to the nation’s overall military policy, especially in defending the border during the Mexican Revolution. There are many reasons why Arizona became a state, but southeastern Arizona’s rich history makes for strong bragging rights.

The Turning Point Monthly, February 2012, page 6


Resolutions of Support By Akos Kovach Remember the theme from the first “Rocky” movie? It was a contemporary orchestral compilation — with lots of horns — escalating excitement, building to a crescendo with piano and voice leading the charge “to the top.” That music, written by Bill Conti, “branded” the movie and left an indelible memory of Rocky Balboa jogging through the streets and eventually climbing 70-plus stairs leading to the entry of the Philadelphia Museum of Art. The SEAGO Region has faced incredible challenges lately, both internal and external problems, an economic meltdown, population losses — the list is lengthy. But as we learn the many Rules of Life, the number of times you are knocked down does not matter; what does matter is how quickly and how often you pick yourself up. Just as in the first Rocky movie, we are at a crossroad. Should we continue doing the same old things the same old way and hope for a new result? While Rocky did “go back to the basics,” he also listened to good advice and educated himself, putting mistakes and bad choices behind him. With the help of others, Rocky faced his problems and shortcomings, and with hard work and determination he conquered his “circumstance” and rose “to the top.” Our demons have taken the form of unemployment, increasing poverty and decreasing population. Tourism and bed tax dollars have dwindled. Road repair dollars, CDBG and Housing programs have been severely cut.

But opportunity is knocking at the door. As Albert Einstein once wrote, “There are two ways to live: You can live as if nothing is a miracle; you can live as if everything is a miracle.” Case in Point: HR 1540 — legislation signed into Law as the 2012 National Defense Authorization Act (NDAA). The NDAA mandates that the FAA integrate Unmanned Aircraft Systems (UAS) into the National Airspace System (NAS). To accomplish this mission, the FAA must select 6 national test ranges to gather data and work through the safety issues of flying

Arizona Members of Congress sent a support letter for an Arizona-based FAA Test Range on Jan. 30. To see how they worded their support, visit the SEAGO EDD blog. remotely piloted aircraft alongside piloted aircraft. It must use criteria such as the size and availability of non-exclusionary airspace, proximity to restricted airspace, military operating areas, border patrol operations, other airspace uses like general aviation activity, weather for continuous testing, VFR operations, geography, elevation and climate.

Pfc. James Leaverton, left, became the 10,000th Unmanned Aerial System Operations graduate since the program started in 1986. He receives his wings from Jerry Proctor, Deputy to the Commanding General, U.S. Army Intelligence Center of Excellence. Photo by Beatrice Richardson of the Sierra Vista Herald. For the complete story, visit the newspaper’s website.

Benson Termed Ideal for UAS Test, Development Site Jerry V. Proctor, Deputy to the Commanding General, U.S. Army Intelligence Center and Fort Huachuca, left, talks to Kevin Oberg of Benson during a recent presentation by Proctor about the suitability of the Benson airport for an Unmanned Aerial Systems test site. The presentation was made at a meeting of the Benson/San Pedro Valley Chamber of Commerce. For the complete story, visit the San Pedro Valley News-Sun website.

Benson airport scores No. 1 Whose airport came out No. 1? Benson, Arizona! What does this mean? Job creation and capital infusion. Hundreds of new high quality, high-salaried jobs primary jobs plus hundreds of support jobs. This includes the multitude of private contractors who will need to locate nearby in order to facilitate testing of Next Gen radar, air traffic control panels, training pilots and testing. You can help. The Arizona Commerce Authority is gathering letters of support. Every city and town, each county, councils of government, etc. can add their voice to the chorus. We support new job creation, we support the selection of the Benson Municipal Airport as one of the six FAA national test ranges. Just as Rocky determined to reshape his future, the SEAGO Region can now reshape our future. Act now, you have it in your hands to reshape and diversify our economy for generations to come. Questions? Want to learn more? Contact: economicdevelopment@seago.org

The Turning Point Monthly, February 2012, page 7


Lawton-Fort Sill Economic Development Corporation

Group Tours Ft Huachuca, Meets with Sierra Vista Officials

A commitment to excellence is not just a mission statement to the 40 some representatives that recently flew from Lawton, Oklahoma to Sierra Vista. This trade delegation came to learn and share as they have done several times over the past few months across our great nation. This group does not resemble the image or definition of a traditional Chamber of Commerce — the LFSEDC is incorporated and organized to promote and advance commercial, industrial, recreational, agricultural, health, educational, social and professional activities of the people of the Lawton-Fort Sill

community in southwestern Oklahoma.

Their objectives include: 1. Collecting and compiling information of value to the growth and welfare of the Lawton Fort Sill area. 2. Encouraging and aiding the development of existing business and industry, and establishing viable economic development programs. 3. Affirming the friendship between Lawton and Fort Sill, and furthering the interests of the area. Visit their website and you find tourism, local attractions, dining, lodging, entertainment,

reasons to relocate, and much more — all of which points to the positive energy created by teamwork. The two-and-a-half day visit, January 25-27, was extremely well planned and organized. Kudos to the planning team in Lawton and Fort Sill as well as here at Ft Huachuca and Si-

Living Sustainably: It’s Your Choice Would you like to live more sustainably? Are you unsure of what it might mean? Is all the information out there confusing? The new NNSLE course “Living Sustainably: It’s Your Choice” can help. It’s now online at the Cooperative Extension Service. To enroll in this class, first go to campus.extension.org. Second, create an account or use your existing account. To create an account click on “Create new account” and fill in the information requested. If you already have an account, look to the left and enter

your username and password to login. When you create a new account you should receive an email confirming the account creation within an hour or so. Follow the instructions in the email to enable the account. If you do not get a confirmation email please email moodlehelp@extension.org for help. Once you are logged in you will see a list of course categories; click on the category “Community and Economics,” then scroll down until you see “Living Sustainably: It’s Your Choice.” Click on this and you will be taken to the course to enroll. The Turning Point Monthly, February 2012, page 8

erra Vista. The itinerary kept attendees moving from one location to another, while providing them with critical content on how the private sector and civilians can best be educated about the type and level of support any Army base needs in order to remain economically vibrant.

SEAGO Newsletter Feb 2012  

SEAGO Newsletter Feb 2012