Page 1

October 2011

Published for SEAGO Member Entities and Strategic Partners

Vol. 1, No. 10

Mayor Garino storms Washington Two from SEAGO named ‘Champions of Change’ Nogales Mayor Arturo Garino and SEAGO Economic Development Planner A’kos Kovach were recently honored by the White House as Champions of Change at ceremonies in Washington, D.C. They joined 21 other leaders from Texas, Arizona, New Mexico, and Southern California who were honored at the White House for their work in creating economic opportunity at the border with Mexico. SEAGO is actively working on several job expansion/job creation programs within the SEAGO Region: Bisbee and Nogales are both interested in creating business incubators; there is a project in the early stages for an Industrial Park adjacent to the municipal airport in Bisbee, three intermodal locations, Foreign Trade Zone opportunities, and a number of job match projects through SEAGO’s Pathways Out of Poverty program. continued on page 2 Nogales Mayor Arturo Garino poses at the White House during a mid-September trip to Washington, where he was honored as a Champion of Change, as was A’kos Kovach, Economic Development Planner for SEAGO.

Shelter Programs Offer Opportunities in Sonora By A’kos Kovach With 13 major Industrial Park complexes and two additional parks under construction, Nogales, Sonora is rapidly branding itself as the Industrial Capital of Sonora. Public-private partnerships are flourishing. The Maquiladoras program is doing very well and two selfcontained Shelter Programs with which SEAGO has become familiar – The Offshore Group,

the largest civilian employer in Sonora with industrial parks in Nogales, Guaymas and Em-

palme, and Collectron International, who focuses on Nogales, continued on page 4

More big stories inside: SEAGO Executive Director Randy Heiss urges state’s Congressional Delegation to support border jobs act. New owner for short-line copper railroad in Eastern Arizona. Fall/winter dates set for unique cross-border tour for those interested in economic development.

The Turning Point Monthly, October 2011, page 1


Champions of Change

Nogales Mayor Arturo Garino, above, shows off his Champion of Change certificate, while A’kos Kovach, SEAGO’s Economic Development Planner, below, does the same. Celebrating with the men are, from left in both photos, Maria Luisa O’Connell, Senior Advisor for Trade and Public Engagement, Office of the Commissioner, U.S. Customs and Border Protection; Carlos Monje, Senior Policy Advisor for the Domestic Policy Council; Laura Marquez, Senior Advisor and Director of Border Export Strategy, International Trade Administration, U.S. Department of Commerce; and Gabriel Soledad, Special Assistant to the Assistant Secretary, U.S. Department of Commerce).

continued from page 1 To date, Pathways has placed 72 trained personnel in new jobs. A testament to the Pathways department and their dedication to finding jobs for those who were trained and certified through the Pathways program at Cochise College. Mayor Garino is an active participant in the U.S.Mexico Border Mayors Commission, and tirelessly promotes the truth about border communities and the high level of safety found in all SEAGO Region border cities. “It was a distinct honor to represent SEAGO at our Nation’s Capital,” said Kovach. “The big story? Right now there is a generational ‘chance of a lifetime’ to enhance job creation and job expansion in the SEAGO Region. “The exponential growth at the Port of Guaymas, a mere 300 miles to the south of Naco, is driving this opportunity. “Guaymas has doubled their capacity for two years in a row and are on track to double capacity again this year. What does this mean? More bulk and more container traffic coming ashore that must travel north by truck or rail, mostly rail.” “Do we really want new jobs? Do we really want to address diversifying our economy? Then now is the time to get behind these activities and ensure there are plenty of jobs for our children and grandchildren now and far into the future,” Kovach said. Washington schedule for Garino and Kovach 8 a.m -8:45 a.m. Meet & Greet Location: NDN (a think tank and advocacy organization, located across the street from the White House) NDN President Simon Rosenberg provided opening remarks and an overview of the day’s meetings/NDN’s SW Border Initiative.

A’kos Kovach, at left, shares the excitement with Arturo Garino, as the two prepare for one of several sessions with high-ranking Washington officials during their trip to the nation’s capital in mid-September. They interacted with top officials from Economic Development, Border Protection and Transportation, among others.

8:45 a.m.- 9 a.m, Social Media/Networking Break Location: Jackson Place-Truman Room (White House Conference Center, across from White House.) All attendees were asked to update their social media accounts (Facebook & Twitter) with a post about their visit to Washington to highlight local successes and identify resources that will help local leaders create more jobs of the future. 9 a.m. – 10 a.m - Department of Transportation Panel and Discussion – Trucking and Public-Private Partnerships Location: Jackson Place- Truman Room Speakers: Katie Thomson, Secretary’s Counsel; Bill Quade, FMCSA Associate Administrator; Jake Falk, Director of Public-Private Partnerships

The Turning Point Monthly, October 2011, page 2


10:15 a.m. -11:30 a.m. - Champions of Change Roundtable Location: Jackson Place- Truman Room Champions of Change met with Administration officials and were formally recognized for their efforts to create new jobs and build their local economies. 11:40 a.m. -12:30 p.m. - Commerce Discussion – Leveraging Community Assets to Drive Investment Location: Jackson Place- Truman Room Admin. Host: Assistant Secretary John Fernandez Economic Development Administration, U.S. Department of Commerce 12:30-1:30 p.m. Lunch Block High Tech High Group – Lunch and Presentations Location: Jackson Place- Jackson Room High Tech High students ordered pizza at Jackson Place and presented their projects to an administration official. 2 p.m.- 2:15p.m. – Social Media/Networking Break Location: White House/Eisenhower Executive Office Building Attendees were asked to update their social media accounts. 2:15 p.m. - 3:15 p.m. - Customs and Border Protection/DHS Discussion – Border Security and Trade/ Ports of Entry Location: White House/EEOB Admin. Host: Commisioner Alan Bersin, DHS Customs and Border Protection

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

SEAGO Encourages Support for Border Infrastructure, Jobs Act SEAGO Executive Director Randy Heiss has sent a letter (shown at right) to all members of the Arizona Congressional Delegation, encouraging support for Rep. Grijalva’s bill, detailed in the August SEAGO EDD newsletter and summarized below: Rep. Grijalva’s Five-Point Plan •  Strengthen crossborder trade; •  Modernize and expand border transportation; •  Adequately staff the ports of entry; •  Invest in innovation and research; and •  Revitalize small business activity. Funding within Grijalva’s bill •  $80 million for San Luis; •  $110 million for Douglas expansion and modernization; •  $50 million for Nogales. •  500 more Customs and Border Protection Officers.

September 20, 2011 The Honorable Jeff Flake U.S. House of Representatives 240 Cannon House Office Building Washington, DC 20515 Dear Representative Flake: Subject: Border Infrastructure and Jobs Act On behalf of our member communities along the U.S.-Mexico border, we wish to encourage your support for the above referenced legislation. Due to their locations and existing political and business relationships with America’s third-largest trading partner, these communities are key to the U.S. economic recovery. It is our understanding that the Act will provide funding to strengthen cross-border trade, modernize and expand aging border infrastructure, and provide adequate staffing at Arizona’s ports of entry. All of these provisions are tools these communities need to create jobs as well as accelerate and expand existing cross-border trade, in turn creating a major economic impact on the region, state and U.S. economy. Given the urgency of reducing the federal deficit, Congress should consider prioritizing investments and fund projects most likely to provide an immediate and significant return on such spending. Investments in the U.S. Mexico border region have historically proven to provide the desired economic impact, and we therefore respectfully request that you consider the importance of such investments, whether through the Border Infrastructure and Jobs Act, or another bill providing for similar investments in border infrastructure. Sincerely, Randy Heiss, Executive Director

A’kos Kovach, publisher and editor Gary Dillard, copy and 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.

The Turning Point Monthly, October 2011, page 3


Shelter Programs continued from page 1 Sonora and Nogales, Arizona but also has facilities in Agua Prieta are both excellent models of business efficiency. How do you define the Maquiladora program? The best answer we ever heard or read can be found on the SEAGO EDD You Tube Channel: Spend one minute and 33 seconds to find out the origins and history of the Maquiladora program in Mexico. Roberto Moreno, from Collectron International, provides a scholarly summation. What is the Shelter Program? The Shelter Program is a systemized business model used in Mexico to bring employers to Mexico. The Shelter Program is supported by all levels of government in Mexico, and is a manner of managing the scale and complexities of hiring, screening, training and managing details necessary to establish a manufacturing or business presence in Mexico. Collectron is a pioneer of the Shelter Plan with some 40 years of experience. Collectron provides understanding of the prerequisites required to obtain Mexican business permits and operate as a maquiladora as required by SECON, the Mexican equivalent of the U.S. Department of Commerce. Similarly, The Offshore Group offers these same services at two large, totally self-contained Industrial park/manufacturing locations in Guaymas and Empalme. Manufacturers are provided access to a stable, competitively priced Mexican labor force with a deeply ingrained manufacturing culture. Both Collectron and The Offshore Group assist their clients with document preparation, corporate charters, legal powers of attorney and various contracts. The Offshore Group’s subsidiary, The ILS Company, operates the only bonded warehouse in Tucson. SEAGO is very fortunate to count among our strategic partners these two excellent examples of business efficiency. Why is this important? Because expanding or creating jobs in Sonora helps the entire SEAGO region and beyond. Visit the parking lots of malls and big box stores in Nogales, Sierra Vista, Tucson, Benson, Safford and all points in between and you will see license plates on many of the cars and trucks from Sonora, Mexico. More jobs in Sonora means more Mexican shopcontinued on page 5

Goodrich, shown above and on page 1, is just one of several dozen international companies that have located in Sonora.

The Tri-City area of San Carlos, Guaymas and Empalme, on the coast of the Sea of Cortez in Sonora, bring together old world charm, safe living and working conditions coupled with modern amenities.

From sea water to drinking water. This Offshore Group desalinization plant at Empalme can produce 600,000 gallons of fresh water each day – the current demand at the complex is only 400,000 gallons. The Turning Point Monthly, October 2011, page 4


EDA Reauthorizes SEAGO EDD By Akos Kovach Unless your head has been planted firmly in a sand dune, you are aware policy makers and fiscal wonks are cutting programs and reducing or eliminating funding at all levels. The EDA itself has been under extreme scrutiny despite a 40+ year history of outstanding

performance and job creation. There are EDA programs far and wide that will not be reauthorized. Those EDA/EDD programs that survive will be akin to the remnant flock, gathered together from distant places, better stronger and ready to be more fruitful – to be even more suc-

cessful. We are happy to report that the SEAGO EDD program reauthorization is literally “in the mail.” We are grateful for the confidence EDA has shown the SEAGO EDD program. The CEDS Scope of Work was described as “one of the best they have ever read,” and they reminded us “they read a lot of them.” EDA also praised the functionality and ease of use of the SEAGO online CEDS. The un-

derwriter was able to find exactly what she needed when she needed it by paging through the table of contents and the various chapters. EDA was also impressed with the accuracy of the pagination on the pdf version, and thanked us for the extra effort to match the Table of Contents with correct matching page numbers. Little things add up, and little things add up to big things. Big things are on the horizon. Stay tuned.

BBB, SBDC Offer Step-by-Step Class on Creating Web Presence

The U.S. EDA complimented the SEAGO Economic Development District on the recent publication of its 2010-2015 Comprehensive Economic Development Strategy (CEDS) online. Note the “branding” of the product: It’s heading online coordinates with the heading of this newsletter; it’s name, “The Turning Point,” is carried through with the newsletter, which is called “The Turning Point Monthly.” One of the advantages of a “living” online publication is that it can be updated continually as the economic development needs and successes of the SEAGO region evolve.

Shelter programs continued from page 4 pers in not only border towns like Douglas, Naco and Nogales, but also much further north. We often mention the need for us to diversify our economic base. Why? Because the old “construction model” or “housing model” is no longer valid. Thus we must expand trade opportunities, increase trans-

portation capacity, add new intermodal operation centers, increase warehousing space and position ourselves with manufacturing jobs – this is just simple math. International trade means commerce crossing both north and south of the international border. International trade is cur-

The Better Business Bureau and the Cochise College Small Business Development Center are offering businesses a comprehensive class that will take participants step-by-step through the creation of a presence on the internet. This seminar will be held at Cochise College, Sierra Vista Campus, Horace Steele Room, on Wednesday, Oct. 26 from 9 a.m. to noon. The cost is $59 and will include take-home materials. The seminar will include all the information needed on setting up a blog/website, a Facebook business page, Twitter page and YouTube channel. It will be taught by Margaret and Gary Dillard of Prism Communications of Bisbee. To register, contact Rachel at the Small Business Development Center at (520) 515-5478 or (800) 966-7943, Ext. 5478. rently one of the largest economic drivers in the entire state of Arizona. Mexico and China are vying for the No. 2 spot on the list of our Top 3 international trade partners; Canada is No. 1. This is just one reason why it is important to reach across the border and build alliances and strengthen partnerships with Economic Developers, business owners, Shelter program opera-

The Turning Point Monthly, October 2011, page 5

tors such as The Offshore Group and Collectron in Mexico. Another benefit? The more good jobs available in Mexico, the fewer number of illegal border crossers looking for work in the States. For introductions to key business or community leaders in Nogales, Sonora or at Collectron International or the Offshore Group, please contact us here: SEAGO EDD.


Medicare Open Enrollment Starts Oct. 15, Ends Dec. 7 Medicare has changed the “open enrollment” period this year. Therefore, beneficiaries need to study their options regarding Part D prescription drug and Part C Medicare Advantage plans. In prior years, the annual enrollment period did not begin until mid-November and lasted through end of the year, with any changes or choices made effective Jan. 1. Starting this year, that time period has been moved up for Medicare Advantage and Medicare Part D prescription drug plans to Oct. 15 through Dec. 7. This means that Medicare beneficiaries will have to analyze their options and make choices earlier than in prior years. During “open enrollment,” Medicare beneficiaries who do not have a Part D plan can enroll in one, and those who do have Part D coverage can change plans. They can also return to traditional Medicare from a Medicare Advantage (MA) plan, enroll in an MA plan, or change MA plans. Individuals must make their choic-

SEAGO can help with Medicare open enrollment Call Graciela Murcio at (520) 432-5301     extension 205 for an appointment

es by the new deadline of Dec. 7 in order for coverage to be effective Jan. 1, 2012. Open enrollment is only once a year. Even if individuals are satisfied with their plan in 2011, they still need to review their plan options for 2012. Part D and MA plans may have made changes to their coverage, provider networks and other plan features. Starting Oct. 1, 2011, plan information for 2012 will be available on the Medicare Plan Finder at www.medicare.gov. Medicare Advantage and Part D plan sponsors are allowed to start marketing their plans on Oct. 1. SEAGO’s Medicare insurance counselor, Graciela Murcio, is available by appointment to help seniors and their families review their options. She can also help individuals who are low income to enroll in programs that help pay Medicare premiums. For an appointment please call (520) 432-5301, extension 205.

A Great Deal at the Goodwill Job Connection! By Alison Van Gorp, Pathways Job Developer Goodwill has always been known as a place to go to get a good bargain, but their Job Connection Center offers the best deal yet. Through this innovative program, Goodwill has expanded their valuable repertoire of services to include comprehensive assistance for job seekers and it is all free of charge! Recently the SEAGO Pathways Out of Poverty staff had the privilege of partnering with Goodwill Industries personnel for a workshop at their Job Connection Center, located in their Sierra Vista store. We were delighted with what we discovered: a modern, well-appointed resource room, complete with multiple computer stations, internet access, availability of a copier and printer, staffed by a welltrained caring professional. All of this and more is available, for those individuals who need support in their job search. Tony Pinson, Goodwill’s Career Development Specialist, was on hand to help with our event. In the course of our visit, we had the opportunity to witness first hand the value of this program. The Job Connection Centers are designed to pro-

Job Connection in Southern Arizona Benson: Walmart Shopping Plaza, 205 S. Prickly Pear Road, (Monday and Tuesday, 9 a.m. to 4:30 p.m.) Sierra Vista: 2105 E. Fry Blvd, (Tuesday through Thursday, 9 a.m. to 4:30 p.m.) Tony Pinson, Goodwill’s Career Development Specialist.

vide job search assistance through career planning, resume writing, interview skills training, and job referrals. In addition, the Job Connection can help people gain access to other resources available to them in their communities such as day-care assistance, GED and ESL training, family counseling, tax filing assistance and food boxes. Read more about Job Connection

The Turning Point Monthly, October 2011, page 6

Tucson: 2907 N. First Avenue (just north of Glenn). Tucson: Midvale Plaza at 1680 W. Valencia Road. Both Tucson locations open Monday through Thursday, 9 a.m. to 4:30 p.m.


New Owner for Short-Line Copper Railroad Genesee & Wyoming Inc. reported Sept. 1 that it has completed its acquisition of the Arizona Eastern Railway (AZER) from Iowa Pacific Holdings LLC for $90.1 million in cash, subject to adjustment for final working capital. Headquartered near Miami, Ariz., AZER is composed of two rail lines operating over 200 track miles in southeast Arizona and southwest New Mexico that are connected by 52 miles of trackage rights over the Union Pacific Railroad. Its primary customer is the regional copper operations of Freeport-McMoRan Copper & Gold Inc. GWI owns and operates short-line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. In addition, it operates the Tarcoola-to-Darwin rail line, which links the Port of Darwin to the Australian interstate rail network in South Australia. AZER primarily provides rail service to FreeportMcMoRan’s largest North American copper mine at Morenci and its North American smelter at Miami,

Genesee & Wyoming railroad, port holdings around the world. New owner for Arizona Eastern Railway Hauls copper concentrate, copper anode, copper rod and sulfuric acid for FreeportMcMoRan.

hauling copper concentrate, copper anode, copper rod and sulfuric acid. In conjunction with the transaction, AZER and Freeport-McMoRan have entered into a long-term agreement whereby AZER will provide specific service and track upgrades and Freeport-McMoRan will provide AZER with certain guarantees. Read more about Genesee & Wyoming

Unique Cross-Border Tour Sets Dates for Fall/Winter Thanks to a unique collaboration between an American and a Mexican community foundation, you can be a participant in an unprecedented program of international community development in Nogales, Sonora, Mexico and Santa Cruz County, Arizona. The Santa Cruz Community Foundation (SCCF) and Fundacion del Empresariado Sonorense, A.C. (FESAC) cross-border

tours open the door to innovative community development projects in a region too often inaccurately characterized by sensationalized stories about illegal immigration and drug-related crime. You can see the real story for yourself. These tours have been going on for almost two years and have taken across over 300 people to date. They are not tourist tours. They are designed for people who have a serious interest in supporting positive community development in the border region. All-day tours Tours meet in the SCCF office in Nogales, AZ (Sunshine Bank of Arizona Business Center, 825 N. Grand Ave.) at 9:30 am. There is a short orientation with Bob Phillips, SCCF Executive Director, then the tour crosses the border (passport required) and meets the FESAC Executive Director, Alma Cota de Yanez, around 10:15 am. Comfortable air-conditioned van transportation is provided. The tour visits two project sites, has lunch at a local restaurant, visits one or two more sites, has a debriefing meeting hosted by La Roca Restaurant, then crosses back into the United States

around 3:30 pm. Cost of the tour is $50 for an individual ($80 for couples) to cover van rental, gas and lunch costs. The fee is due before leaving and is non-refundable. For more information, or to make reservations, contact SCCF, Robert T. Phillips, Executive Director, at (520) 761-4531.

They are not tourist tours. “ They are designed for people who have a serious interest in supporting positive community development in the border region.

Cross-border tour dates Fall/Winter 2011/12 (all dates are on a Tuesday) October 11, 2011 October 18, 2011 November 8, 2011 December 13, 2011 January 10, 2012

The Turning Point Monthly, October 2011, page 7


From left, Laurel Kibler, RN, Nursing Executive at NCCH, Eddie Browning, keynote speaker, Roland Knox, CEO of NCCH, and Mayor Sam Lindsey at the Arizona Association of Healthcare Volunteers.

Auxiliaries Support Local Hospitals When Willcox Mayor Sam Lindsey arrived Sept. 15 at the Northern Cochise Community Hospital Senior Learning Center to speak to the guests gathered there for a meeting of the AAHV (Arizona Association of Healthcare Volunteers), he was quickly enveloped in a big hug from LaVerne Williams, long-time Mayor of Bisbee, Ariz. LaVerne was the mayor from 1988 through 1996. As Mayor, when she met a new person she often surprised them with a hug rather than a handshake. Since then she has become known as the “huggin’ mayor” and continues her theme: “Have You Hugged a Mayor Today?” She remains heavily involved in volunteer work at the Copper Queen Community Hospital Auxiliary and in countless civic activities throughout the city. The NCCH Auxiliary hosted about 35 members of Auxiliaries from Willcox and surrounding hospitals at the Fall meeting of the Southern Region of the AAHV. The cities represented were: Bisbee, Tucson, Sierra Vista, Casa Grande, Safford, and Willcox. Welcomes were given by Roland Knox, CEO of NCCH, and Mayor Sam Lindsey. Laurel Kibler, RN, Nursing Executive at NCCH, spoke about the many milestones NCCH has attained

through the years to become the wonderful hospital we all appreciate today. Keynote speaker was Eddie Browning, who entertained us as only he can with the real and the humorous stories about the cowboys who have made the history and continue to influence the cultural landscape of Willcox. The NCCH Auxiliary wishes to thank all who participated, and especially NCCH Administration, for their support in making this an enjoyable and informative day for all. We would like to encourage men and women who might be interested in joining the Auxiliary to stop by the front desk at the hospital and ask for an application and/or chat with a member there or in the Gift Shop. Duties consist of answering the phone at the switchboard and working in the Gift Shop. The minimum commitment is eight hours per month. Gift Shop and Fundraising proceeds are returned to the community and the hospital in the form of scholarships to qualifying high school seniors who wish to enter the healthcare field and a yearly donation to the hospital for new equipment, physical upgrades, etc. This article was written, and photo provided, by Mary Ulses, who is treasurer of the NCCH Auxiliary. It was originally published in the Sept. 21 issue of the Arizona Range News in Willcox.

SEAGO turns 40 !! 1972-2012 Updates to follow in successive editions of

Ask us about the Open House/Grand Opening of the new SEAGO facilities

Regional Events Oct. 5, noon-1 p.m., Mel and Enid Zuckerman College of Public Health Drachman Hall, A112, Tucson, “How the Ancient & Recent Past Affect the Modern Epidemiology of Diabetes Mellitus Type 2.” Dr. James Watson, Assistant Curator of Bioarchaeology, Arizona State Museum. Oct. 7-9, Benson, Butterfield Overland Stage Days, parade, car show, quilt show, Buffalo Soldiers re-enactment, kids rodeo, adult rodeo, 62nd Army Jazz Band, fireworks. Oct. 8, Douglas, 24th Annual Cochise County Cycling Classic. Oct. 22, 11 a.m.-8 p.m. Clifton Town Park, 1st Annual Music Festival, great bands, food vendors, local artisans and crafters, children’s play area, Greenlee County Chamber of Commerce and Economic Development. Oct. 27-30, Bisbee, 9th (Almost) Annual Comedy Show “Slap Happy: the Second Dip,” stand-ups, skits, monologues, original stories, slapstick, stupid pet tricks. Looking for talent. Rehersal on Oct. 27, performances Oct. 28-30. Oct. 29, Bisbee City Park and Ecoasis Sustainable Living Center, Adelante! Eco Music Festival, local music festival with green theme. November 9, noon–1 p.m., Mel and Enid Zuckerman College of Public Health Drachman Hall, A114, Tucson, “Farmers May Be the Doctors of Our Future: How TOCA is teaching youth to be farmers and reinvigorate traditional foods into the community’s diet.” Terrol Dew Johnson Director, Tohono O’odham Community Action (TOCA).

SEACAP Emergency Utility Fund

If you have a family member, friend, colleague or acquaintance experiencing financial strife and about to lose services or have been cut off by a utility, they may find some relief through SEACAP. Southeastern Arizona Community Action Program (SEACAP) is a strong strategic partner of the SEAGO Region; in fact we share the same service footprint – Santa Cruz, Graham, Greenlee and Cochise counties. SEACAP has their primary administrative office in Safford at 283 W 5th St. Please refer your questions about emergency utility assistance to their main office for support: (928) 428-2872.

The Turning Point Monthly, October 2011, page 8

SEAGO Newsletter-October 2011, Vol.1 No.10  

Promoting economic development in Southeast Arizona

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