Inside Tucson Business 7/13/12

Spinning around like a squirrel cageLots of housing action but how much progress?

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Pipe dreamsMexico banks on new natural gas line from U.S.

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Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • JULY 13, 2012 • VOL. 21, NO. 59 • $1

MOTHER-DAUGHTER TEAM EMBRACE

THEIR SPACE

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I-10 Self-Storage business is a Herder family affair

Tucson home prices projected to gain 3.4% by year’s endBy Roger YohemInside Tucson Business

Buried deep in the nation’s vast database of housing statistics is a positive sign about the short-term future of the Tucson market: Local home prices are projected to in-crease an average of 3.4 percent by the end of the year.

After years of decline, the new forecast puts Tucson into the na-tion’s top 20 metropolitan areas for highest price increases. Expected to lead the way is Seattle with a 14.4 percent gain. At 10.4 percent, the Phoenix metro market is predicted to have the second-highest average gain. Tucson ranks No. 17.

Th e new analysis is from Clear Capital’s June Home Data Index Market Report. California-based Clear Capital analyzes data to iden-tify real estate market trends for fi -nancial organizations.

Alex Villacorta, research and ana-lytics director for Clear Capital, said he expects to see national, regional and most metropolitan markets im-prove over the next six months. Price trends in June “provided evidence that housing has turned the corner, with the momentum of the recovery picking up speed.”

Cautiously optimistic, he em-phasized the housing market’s fun-damentals “remain vulnerable to domestic and global economic chal-

lenges.”Over the past 12 months, Clear

Capital reported that Tucson’s hous-ing market has stabilized somewhat. Th rough June 2012, the region strug-gled to cling to a year-over-year av-erage price gain of just 0.3 percent. Yet from the 2012 fi rst quarter to the second quarter, the increase was a solid 2.7 percent.

However, distressed real estate owned properties, known as REOs, continue to plague Tucson’s recov-ery. Th ese foreclosed bank-owned homes made up 37.6 percent of lo-cal sales in the second quarter. Th at is the eighth-highest ratio in the na-tion and a trend that is not expected to decline signifi cantly until the end

of the year. Worse off than Tucson, Detroit

had the highest REO saturation at 52.2 percent. Other cities with higher REOs than Tucson were Atlanta at 44 percent; Las Vegas at 42.2 percent; Memphis at 41.6 percent; Birming-ham, Ala., at 40.2 percent; Fresno, Calif., at 39.3 percent; and Bakers-fi eld, Calif., at 38 percent.

Distressed foreclosures typically drive down values in all price seg-ments as buyers and investors move to purchase properties at large dis-counts.

Contact reporter Roger Yohem at ryo-

[email protected] or (520) 295-4254.

Tucson rankings all over the board PAGE 3

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2 JULY 13, 2012 INSIDE TUCSON BUSINESS

JULY 13, 2012 3InsideTucsonBusiness.com

Public Notices 6Lists 7-8Profile 9Meals and Entertainment 10Arts and Culture 10Inside Media 14 Briefs 15

People in Action 17 Calendar 17Finance 18Real Estate &Construction 19Biz Buzz 20Editorial 20Classifieds 23

EDITION INDEX

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In surveys, Tucson ranks all over the board — does it matter?

By Patrick McNamaraInside Tucson Business

Th e online publication the Daily Beast and famed academic Richard Florida re-cently pronounced Tucson as one of the most creative places in the country.

Th e placement would seem a welcome piece of good news following a slew of poor rankings for the city from the likes of Forbes, New Geography.com and the Brookings Institution.

Th e rankings, though, bring up ques-tions of how one survey can pronounce Tucson the sixth best market for aerospace and defense manufacturing as Business Fa-cilities magazine did, while another ranked Tucson a lowly 92nd for business and ca-reers, as Forbes did.

“I tend to look at these pretty critically,” said Laura Shaw, senior vice president of marketing and communications for Tuc-son Regional Economic Opportunities (TREO).

Shaw said it’s often necessary to delve deep into the data sets used to create the rankings to determine what they really mean.

Of course, Shaw said TREO uses the positive rankings in its marketing materi-als.

But looking askance at surveys is exactly what staff ers at Tucson City Councilwom-an Shirley Scott’s offi ce did after receiving an email from a constituent with questions about a survey released in May that had been done by Th umbtack.com in partner-ship with the Kauff man Foundation. Th at

survey ranked Tucson among the fi ve least business friendly cities in the country — ranked with Detroit and Sacramento, San Diego and Los Angeles, in California.

“We had never heard of Th umbtack be-fore,” Scott said. “When you take a look at what they based their metrics on, it’s as-tonishingly inaccurate.”

Scott and her staff ers took exception to the small survey size used for the Th umb-tack.com eff ort. Of the more than 11,000 members of the Arizona Small Business Association, only 23 respondents identifi ed Tucson as the home of their business. Scott also questioned the limited cross-section of business types the survey respondents represented.

SEE RANKINGS PAGE 4

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NEWS

PUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

STAFF WRITERROGER [email protected]

STAFF WRITERPATRICK [email protected]

STAFF RESEARCHERCELINDA [email protected]

WEB PRODUCERDAN [email protected]

LIST COORDINATORJEANNE [email protected]

ART DIRECTORANDREW [email protected]

ADVERTISING DIRECTORJILL A’[email protected]

INSIDE SALES MANAGERMONICA [email protected]

CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

REPORTER INTERNKAITY [email protected]

Deadline is Aug. 6 to appeal Walmart ruling

Opponents of a proposed Walmart Super-center at El Con have until Aug. 6 to appeal a Superior Court judge’s ruling denying a request by a neighborhood association that sought to block it.

Judge Jeff rey Bergin on July 6 denied a request by the El Encanto Estates Neighbor-hood Association seeking a special action to invalidate a 2000 development agreement for the mall with the city of Tucson. Th e ruling up-held the mall’s protected development rights and confi rmed the proposal to build a 108,000 square-foot Walmart store conforms to the city’s zoning regulations.

Last October, the homeowners group fi led a lawsuit in an attempt to overturn a Tucson Board of Adjustment’s decision allowing for the Walmart to be built on the site that formerly housed a three-story 290,000 square-foot retail store built in the 1960s as a Levy’s department store and was last used by Macy’s until it closed in early 2008.

In seeking to block the Walmart, the neigh-borhood association’s lawyers, with Fen-nemore Craig, argued the mall’s development agreement with the city had expired and that the Walmart proposal was not in compliance with the city’s anti-big box ordinance and land use zoning codes.

“Th e question of whether Walmart’s plans meet the stringent development criteria es-tablished for El Con Mall has been answered by the city zoning administrator, the Tucson Board of Adjustment, and now Pima County Superior Court,” said Walmart media director Delia Garcia.

If Bergin’s ruling is contested, the issue would go before the Arizona Court of Appeals.

‘Humble’ Valenzuela deadof lung complications

Funeral services were held Th ursday for Wil-liam G. “Bill” Valenzuela, founder and chair-man of W.G. Valenzuela Drywall & Paint Inc., who died July 8 of complications from acute respiratory distress syndrome, of which he had just been diagnosed last month.

He was 79.Born of humble beginnings, Valenzuela

built his business into a thriving concern and was active in Tucson civic issues.

Mary Peachin, who writes the monthly Remembering Tucson column in Inside Tuc-son Business, profi le Valenzuela in July 2011 in which he said he always valued family. Among the honors he received were Tucson’s Man of the Year and Hispanic Man of the Year.


Several of those survey participants said they worked in the health and beauty industry. In their responses, they identi-fi ed licensing issues as a primary concern, Scott said.

Th e councilwoman noted the city does not license businesses such as manicurists and beauticians. Th e state regulates those types of businesses.

Scott also said the tendency in the news media is to report uncritically on such sur-veys, particularly ones that cast the region in a negative light.

“I think it would be helpful if the press did here what it did in San Diego, that is to be helpful,” Scott said.

Tucson Mayor Jonathan Rothschild also said the Th umbtack survey appeared problematic, but he said he generally tries to read all the surveys and lists about the city he comes across.

“My approach is to look at them and try to learn what I can from them,” Rothschild said.

For example, last month a report by the Brookings Institution put Tucson at No. 83 among 100 cities on its Metro Monitor sur-vey.

“You’ve got to take those a little serious,” he said, noting the generally good reputa-tion of Brookings.

Tucson Metro Chamber CEO and presi-dent Mike Varney, agreed that the big-name rankings need to be taken seriously.

“If CNN and Money magazine put their name on it, it’s legitimate,” Varney said.

He said regional leaders should be con-cerned when the city appears on the wrong side of lists like Forbes rankings.

“To the average person who reads that, it has meaning,” he said. “Th e perception is the reality.”

More than perception, Varney said the most telling statistic of Tucson’s business climate was last month’s mid-year assess-ment of the state’s economy by University of Arizona’s Eller College of Management researchers Marshall Vest and Gerald Swanson.

Th at assessment noted that of the 75,000 new jobs created in the state since August 2010, just 800 have been in the Tucson re-gion. Th e area has lost more than 35,000 jobs in the past four years.

“Th at says it all,” Varney said. “It’s hard to refute when it comes from our own guys at the Eller school.”

Like Rothschild, Varney said lawmak-ers should view the surveys and rankings as something to inform better public poli-cies.

“We need to talk about how to move up

in these surveys rather than always trying to kill the messenger,” Varney said. “Th is information is plastered on every site se-lector’s bulletin board.”

Site selectors are business consultants who help corporate bosses fi nd amenable locations for expansions or moves.

Among the many criteria site selectors use on behalf of clients are rankings found in consumer and industry magazines.

“We certainly take a look at these things,” said Deane C. Foote, president and CEO of Phoenix-based Foote Consulting Group. “But we take it with a grain of salt.”

Foote said clients at times have pointed out rankings and surveys they’ve come across and requested he examine the claims further.

But, he said, most of the research is culled from deeper analyses of economic and tax conditions of specifi c regions.

Whatever the surveys and rankings say, Rothschild said Tucson always has room for improvement in the economic front.

“In this community, we have a long history of being down on ourselves and it echoes,” Rothschild said. “I’d love to see the synergy get better.”

Contact reporter Patrick McNamara at

[email protected] or (520) 295-4259.

Tucson: Th e city in numbers

RANKINGS CONTINUED FROM PAGE 3

NO. 2 medium metropolitan area on Headlight LLC’s, Best Performing Metros

NO. 4 on the American Lung Foundation Top 25 Cleanest U.S. Cities for Year-Round Particle Pollution

NO. 4 on the Case-Shiller Index Best Five Housing Markets over the Next Two Years

NO. 6 on Business Facilities Magazine’s 2011 Best Cities for Aerospace/Defense Manufacturing

NO. 12 in Outdoor Magazine’s Best Town Ever 2011

NO. 12 on Bicycling Magazine’s America’s Top 50 Bike-Friendly Cities

NO. 15 on CNNMoney’s Best Places to Retire

NO. 20 on Th e Daily Beast’s America’s Most Creative Cities list

YAHOO TRAVEL + LEISURE ranks Tucson one of the most underrated cities

NO. 70 on New Geography’s Best Cities for Job Growth (mid-sized cities)

NO. 75 on Forbes’ ranking of Education

NO. 81 in Forbes’ list of Cost of Doing Business

NO. 83 on the Brookings Institution’s Metro Monitor

NO. 92 on Forbes’ Best Places for Business and Careers

NO. 152 on Forbes’ list of Job Growth

“F” for small business friendliness according to Th umbtack.com and Kauff man Foundation Survey.

Lists Tucson did not make: Forbes 2011 list of Most Miserable Cities and The Daily Beast’s Brokest Cities.

NEWSJudge rules county waswrong to deny Rosemont

A Pima County Superior Court judge has ruled in favor of an appeal by Augusta Re-source Corp.’s Rosemont Mine over Pima County Air Quality Control District’s denial of air permit application to open the mine.

Th e July 5 ruling determined that both the district and the Pima County Air Quality Hearing Board “acted in an arbitrary and ca-pricious manner and that the (they) abused their discretion.”

Th e ruling directed the district to process Rosemont’s application in a timely manner. Augusta Resource taken its case to the Ari-zona Department of Environmental Quality (ADEQ), where it has also applied for an air permit.

“Th is ruling is certainly a positive win for Rosemont,” said Rod Pace, CEO of Rose-mont Copper. “Th ere was no doubt that we were being treated unfairly and uniquely in Pima County. Th e court made the right de-cision to order Pima County to allow Rose-mont to be treated justly. Notwithstanding, we will continue to work with the ADEQ to ensure the Rosemont Air Permit gets pro-cessed expeditiously.”

New UA president Hartarrives on campus

New University of Arizona President Ann Weaver Hart arrived on campus Mon-day (July 9) for ceremonies on the UA Mall marking her fi rst day on the job.

In speaking with reporters after the event, UANews said she talked of reducing the time to degree completion, improving gradua-tion rates and emphasizing the importance of higher education and institutions such as the UA. She also talked of working closely with elected offi cials and community lead-ers as well as the importance of pursuing private funds to supports students and the UA’s mission.

Hart replaces Eugene Sander, former ag-riculture dean who served as interim presi-dent for a year after former President Robert Shelton resigned to become become execu-tive director of the Fiesta Bowl.

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Mexico bets on cross-border a natural gas pipeline, but questions abound in U.S.

By Keith RosenblumInside Tucson Business

A multi-million dollar plan would open north-western Mexico to wide-spread use of natural gas, clean up power plants and lower electricity prices, but the plan is partially contin-gent on the not-so-certain as-sumption it will connect to a pipeline at the Arizona border.

Th e plan, announced three months ago, requires extension of a natural gas pipeline to the twin border towns of Sasabe, Ari-zona and Sonora, about 60 miles southwest of Tucson. From Sasabe, a subsidiary of Mexico’s oil company, Pemex, intends to create a multi-state grid that would clean up power pro-duction at several coastal generating plants and off er industrial gas as an op-tion to residents and businesses which, up until now, have known only electricity and propane.

As often happens with cross-border projects, information disseminated in one country is at odds with that of the other coun-try. Moreover, other natural gas projects in northern Mexico have been announced with fanfare, then scrapped. Yet this project may en-joy success precisely because it appears to fuse market forces and environmental stewardship.

Th e plan is moving briskly in Mexico, if slowly and quietly in Arizona, and jibes with economic and ecological realities in both countries. Bids have already been tendered in Mexico, and Kinder Morgan, which operates 75,000 miles of pipelines and 180 terminals, began in April what is called an “early environmental review.”

Its so-called Sasabe Lateral Project, presented to the U.S. Federal Energy Regulatory Commission (FERC),

would parallel Arizona State Route 286 which runs from Th ree Points west of Tucson, either along an eastern rout-ing through the Buenos Aires National Wildlife Refuge or

NEWS

a western routing along state and private property. Th e pipeline would initially move 160 million to 210 million cubic-feet per day and would have the ability to expand to 760 million cubic-feet. If approved, it would take nine months to build, create 500 temporary construc-tion jobs and generate $3 million a year in property taxes its fi rst year, the company said.

At the core of the plan is the inexpensive, abun-dant supply of natural gas in the U.S. selling at prices that are less than half of what they were a year ago and the energy derived from it at current prices equates to oil at $10 a barrel. Natural gas is available only sporadically throughout Mexico.

Th e project has been presented in Mexico as a fait acompli. From Sasabe, 625 miles of natural gas pipelines will distribute the prod-uct to several Sonoran cities and the coastal populations of Puerto Libertad and Guay-mas and eastward to Chihuahua state.

Th e gas will replace fuel oil at gener-ating plants run by the Federal Electric-ity Commission (Comisión Federal de Electricidad, or CFE). Th e plant in Puerto Libertad, less than 240 miles south of the Arizona border, gener-ates 632 megawatts and emits a steady plume of black smoke over the Sea of Cortez. A bid was ten-dered for the 625-mile of pipeline and corollary services at the end of June and if it goes as sched-uled, conversions of the CFE plants could begin in 2014.

What is happening on the U.S. side to facilitate the proj-ect, however, is not as clear.

Public hearings in June conducted by Kinder Mor-gan with FERC represen-tatives produced only objections to both pro-posals. Otherwise, it’s mostly silence.

SEE PIPELINE PAGE 6

This Week’s Good News Riding Sun Tran to work

In light of this week’s article in Inside Tucson Business about ranking, the Brook-ings Institute this week ranked Tucson fourth best in the nation in terms workers’ access to public transportation. According to the study, 52.3 percent of the metro area has neighborhood access to public trans-portation that can get them to their jobs within 90 minutes. Th at’s good, considering the national average is 27 percent.

Ranked No. 1 was Salt Lake City at 64 percent and the worst was Palm Bay, Fla., at 6 percent.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Padres, Moorad separatingJeff Moorad, is not only trying to sell the

Triple-A Tucson Padres, but has removed himself from the parent San Diego Padres that are also up for sale. While Moorad re-mains vice chairman of the parent club, he removed himself as CEO in March after un-successfully trying to gain majority owner-ship — his group currently owns 49 percent of the club — in a deal that valued the club at $500 million.

Now a group headed by the O’Malley family, the same family that owned the Los Angeles — and formerly Brooklyn — Dodg-ers from 1950-1998 is seeking to buy the team. Reports in San Diego say the sale price is now $800 million.

Letcher the consultant Mike Letcher, who was fi red from his job

as Tucson city manager last September after writing a whiny accusatory letter of resigna-tion in which he said he would leave after another 11 months, is now off ering his ex-pertise to others as a management consul-tant. He has activated BridgeGroup, where he lists himself as president and CEO, an limited liability corporation he initially fi led to open in 2009.

According to its website, BridgeGroup “is not your typical management-consult-ing fi rm.” Among the services off ered are eff ective board/manger relations and labor management consulting.

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One organization, Altar Valley Conserva-

tion Alliance, a group of ranchers, cattlemen, bee-

keepers and tourism pro-viders has come out against

the pipeline. Members “feel strongly that

a pipeline fundamentally goes against what we we have been

working towards in this valley,” said Sarah King, a rancher. Any new

pipeline should be located alongside an existing line or on established

rights-of-way, even if it means adding distance to the route, she said. Such a

right-of-way already exists between Tuc-son and Nogales and could be taken west

to Sásabe, Sonora, from Nogales, King said. Members who attended both of the

Kinder Morgan hearings, one in Arivaca and one west of Tucson, came away believing that

“both environmental and safety concerns” put the project at odds with the region’s best inter-

ests. “We are urging people to express their opinions,

whatever they are, and we are working on our own position for FERC,” she said. Th ese “pre-fi ling” steps

precede a so-called “scoping meeting,” where impact on community and environment is discussed formally,

will probably be held in September, King said.Bill Dunn, a rancher active in the Southern Arizona Cat-

tlemen’s Protective Association (SACPA) whose member-ship from Pima, Pinal and Santa Cruz counties is allied with

the Altar Valley Conservation Alliance, said ranchers should not be portrayed as anti-development. “We are simply trying to

be advocates for the resource that is in our care, as ranchers and as part of the community,” he said.

Offi cials at the Buenos Aires National Wildlife Refuge have not yet taken a formal position, but manager Sally Gall recently wrote

Kinder Morgan saying a pipeline of this nature would clash with the refuge’s mandates.

It is unclear what Kinder Morgan would do if both proposals were denied and what, if any, action Mexico might take to relocate its source

for natural gas. Repeated inquiries to Pemex and Mexico’s Secretary of Energy were not

answered this week. Richard Wheatley, who as manager, corporate com-munications and public aff airs, represented Kinder Morgan at the two public

hearings to date, said the company had no comment on goings-on with the company’s customers in Mexico.

Still, Arizona is not the only place along the border where natural gas would be available. Natural gas now fl ows to the border near Yuma and at several places

in California. Another pipeline enters Mexico at Naco, Sonora, near Douglas and serves both a copper mine in Cananea and an industrial park in Hermosillo that is

home to Ford Motor Co.’s stamping and assembly plant.

PUBLIC NOTICESSelected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIESChapter 11 - Business reorganization Fluoresco Lighting-Sign Maintenance Corp., 5505 S. Nogales Highway. Principal: Ladd M. Kleiman, president. Assets: Not fi led. Liabilities: Not fi led. Largest creditor(s): Schedule not fi led. Case No. 12-14719 fi led June 29. Law fi rm: Mesch Clark & Rothschild

Kayco Leasing LLC, 5505 S. Nogales Highway. Principal: Ladd Kleiman, manager-member. (To be jointly administered with Case No. 12-14719 as Fuoresco Lighting-Sign Maintenance Corp.) Assets: Not fi led. Liabilities: Not fi led. Largest creditor(s): Schedule not fi led. Case No. 12-14723 fi led June 29. Law fi rm: Mesch Clark & Rothschild

Ernest L. Graves and Mary Ellen Graves, 7101 N. Corrida De Venado. Principal: Ernest L. Graves and Mary Ellen Graves, joint debtors. Estimated assets: $50,000 or less. Estimated liabilities: $50,000 or less. Largest creditor(s): Schedule not fi led. Case No. 12-15178 fi led July 6. Law fi rm: McEvoy Daniels & Darcy

FORECLOSURE NOTICES Wincat LLC 1632 N. Louis Lane 85712Tax parcel: 122-01-0540Original Principal: $568,000.00 Benefi ciary: BMO Harris Bank, as legal successor to M&I Marshall & Ilsley Bank Auction time and date: 11:30 a.m. Sept. 18, 2012 Trustee: Western Regional Foreclosures, 1 W. Deer Valley Road, Suite 103, Phoenix

Pima Canyon Estates 133 LLC 1407 E. Desert Garden Drive 85718Tax parcel: 220-20-1700Original Principal: $455,000.00 Benefi ciary: James A. Broderick Auction time and date: 11:30 a.m. Sept. 19, 2012 Trustee: Fidelity National Title Agency, 60 E. Rio Salado Parkway, Suite 1106, Tempe

El Gran Mezon Del Cobre LLC 2960 N. First Ave. 85719Tax parcel: 860-65-6616Original Principal: $360,000.00 Benefi ciary: Bank of Tucson Auction time and date: 11 a.m. Sept. 28, 2012 Trustee: Ronald M. Horwitz, Jaburg & Wilk, 3200 N. Central Ave., Suite 2000, Phoenix

LIENSFederal tax liens Diversifi ed Capital Management LLC and Darin W. Guthrie, 2016 E. Broadway. Amount owed: $7,764.90.KJD Enterprises Inc., 220 W. Fort Lowell Road. Amount owed: $8,231.21.Once Upon A Time Inc., 5575 E. River Road, Suite 151. Amount owed: $6,801.91TK Computers & Electronics, 3366 N. Dodge Blvd. Amount owed: $2,136.00. Oasis at Wildhorse Ranch LLC, 6801 N. Camino Verde. Amount owed: $4,559.32.Hollis Graphics Inc., 178 E. Broadway. Amount owed: $8,026.84. IBA Associates LLC, 2450 N. Pantano Road. Amount owed: $2,220.58. Cattletown Steak House and John R. Kocis, 3141 E. Drexel Road. Amount owed: $12,175.76. Crying Onion Cafe and SEDA Enterprises Inc., 2730 W. Placita Hacienda. Amount owed: $17,007.17. Kim & Sons LLC and Ma Bao, 4650 W. Ina Road. Amount owed: $2,544.27.Amorosa Assisted Living and Corpuz Holdings, 1659 Capitol Ave., San Jose, Calif. Amount owed: $5,914.68. Acoma Animal Clinic Inc., 6781 N. Thornydale Road, Suite 207, Marana. Amount owed: $2,065.83. Ram Electric Inc., 4532 E. 32nd St. Amounts owed: $9,070.81 and $1,806.24. Sno-Cones Sonora and Robles Parra Enterprises LLC, 921 W. Congress St. Amount owed: $2,804.66. All That Vending and Norris Williams, 1664 E. Calle Grandiosa. Amount owed: $5,440.56. Valley Energy Corp., 5809 S. Belvedere Ave. Amount owed: $111,507.34.

Proud Creations and Heriberto Tapia, 5233 E. Seventh St. Amount owed: $18,131.39. Sweetwater Group LLC, 25 E. Rillito St. Amount owed: $26,399.23. Systems Service Inc., PO Box 8522, 85738. Amount owed: $9,123.09. Red Ant Inc., PO Box 1508, Sahuarita 85629. Amount owed: $2,675.30. Teresa P. Mejia Inc., 7125 S. Avenida Sombra. Amount owed: $3,112.38. Five Star Adult Care Home LLC, 3275 W. Ina Road, Suite 100. Amount owed: $33,578.97. Beach Baby Tan Club Ltd. LLC, 5635 E. River Road. Amount owed: $2,139.01.Dan Lewis Inc., 2455 N. Campbell Ave. Amount owed: $4,492.95. IRI Sabino Springs Golf Course LLC, 9777 E. Sabino Greens Drive. Amount owed: $11,815.98. Salud Oyster Bar & Grill and Salud Valencia LLC, 1825 W. Valencia Road. Amount owed: $8,729.63. L&K Roofi ng LLC, 2320 E. Summit St. Amounts owed: $2,134.56 and $91,809.20.Cake Gourmet LLC and Christie O’Rourke, 6781 N. Thornydale Road, Suite 22, Marana. Amount owed: $6,408.70. Crystal Auto Glass Enterprises LLC and Shane Johnson, 3395 N. Richey Blvd. Amount owed: $594,265.60. Design Solutions Inc., 3661 N. Campbell Ave. 432. Amount owed: $22,966.50. Stay Flush LLC, 4759 E. Sunrise Drive. Amount owed: $34,311.87.Awards To Go Inc., 7340 E. Broadway. Amount owed: $1,560.00. Garcia Metal Products Inc., 4201 S. Randolph Ave. Amount owed: $454,687.00. Casa Molina and Casa Molina Inc., 6225 E. Speedway. Amount owed: $3,979.14. Olsen Chiropractic LLC and Eric Olsen, 3055 S. Kinney Road. Amount owed: $11,805.87. A&L Auto Care and Arturo Estrada, 4325 S. Sixth Ave. Amount owed: $1,678.34.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)Sharp Marketing Group LLC, 5752 E. Seneca St. Amount owed: $13,427.99.Tampico Health Care Inc., 9860 E. Harmony Lane. Amount owed: $6,052.36. Brick Floor Specialists, 5724 E. Speedway. Amount owed: $8,502.08.F&J Restaurants Inc., 3048 E. Broadway. Amount owed: $47,033.84. Wings Pizza N Things and WPNT Tucson LLC, 8838 E. Broadway. Amount owed: $2,668.27. Marana Stockyards Cafe and Pennie Vandervier, 21027 E. Propsector Place, Red Rock. Amount owed: $37,437.74. Sushi Ten, 2664 W. Calle Don Florencio. Amount owed: $22,992.77. Anda Financial Services LLC,6417 E. Grant Road. Amount owed: $2,188.36.Mike Chavez Drywall, 7570 W. Illinois St. Amount owed: $11,720.37. Appaloosa In The Woods LLC, 11680 N. Copper Mountain Drive, Oro Valley. Amount owed: $6,103.42.Concrete & More LLC, 140 E. Elm St. Amount owed: $2,461.93. Latrikunda Transport Services and Amelia Y. Nance, PO Box 85658, 85754. Amount owed: $5,256.33. MVC Masonry LLC, 8160 S. Marstellar Road. Amount owed: $1,637.02. Stolen Recipe BBQ and Carl Gosset and Maurine Gosset, 3791 S. Bobby Drive. Amount owed: $1,023.94. A Steak In the Neighborhood and My Brother’s Bar Congress LLC, 135 E. Congress St. Amount owed: $9,092.35.

Mechanic’s liens (Security interest liens of $1,000 or more fi led by those who have supplied labor or materials for property improvements.)

Kazal Fire Protection Inc. against QIP Tucson Offi ce I LLC. Amount owed: $33,963.80. L.R. Borelli Inc. against QIP Tucson Offi ce I LLC. Amount owed: $12,042.90. Liberty Fence & Supply Inc. against QIP Tucson Offi ce I LLC. Amount owed: $63,830.00. Kelley Bros. Arizona against QIP Tucson Offi ce I LLC and US Bank. Amount owed: $68,400.00. MKB Constructon Inc. against QIP Tucson Offi ce I LLC. Amount owed: $1,015,715.58.

PIPELINE CONTINUED FROM PAGE 5

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I-10 Self-Storage is a family aff airBy Kaity SitzmanInside Tucson Business

Walk in the front door of the offi ce at I-10 Self Storage and you’ll most likely be greeted by owner Joanne Herder, her daughter Jenna, or one of their three dogs. On the wall above the front desk is a row of old family photos the Herders proudly display.

Take a peek back though the doorway and you can catch a glimpse of what could be the living room in your own home. Th ere’s a couch with pillows, some side tables decorated with your grandmother’s old lamps, and even more family pictures covering the walls.

Family has been the heart and soul of this business from the very beginning.

Years ago, Joanne’s father, Jim Kesicki, had a plot of land and her brother had the idea to build a self-storage unit on the property, located on the west side of Interstate 10 about half-way between the Prince Road and Miracle Mile exits. In 1981, Jim brought that idea to life and built the business for his son.

Over the past 30 years it has been operated by various members of the Kesicki family, but in 2007 Joanne and her hus-band, local construction and development businessman Pete Herder became the sole owners.

In the past, they hired managers to run the daily operations, but two years ago they decided that it would be best to keep everything in the family. Th at’s when their daughter Jenna stepped in to help her mother run the business.

Th at wasn’t always the plan; it was something she fell into.

“We decided to run it ourselves and run it right,” said Jenna, who added she’s never been happier.

It’s been a big commitment, but they’ve loved every second of it.

I-10 Self-Storage was one of three original storage businesses in the Tucson region. Over the years they have faced some challenges, most of them concerning their location. Th irty years ago, the area around their business was far less devel-oped than it is these days and it was almost considered “out of town.”

Getting people to store with them wasn’t easy, but business grew through word of mouth. Th ey knew that customer service would set them apart from their competi-tors and to this day, they pride themselves on customer care. Both women said that it has really made a diff erence when dealing with construction activity surrounding their business.

Th e Arizona Department of Transporta-tion has been widening Interstate-10 and reconstructing the Prince Road traffi c inter-change in an attempt to address traffi c congestion. It has made business access diffi cult, but their loyal customers have

stuck with them and kept the business successful.

While things are going well now, Joanne explained they still want the business to grow. In the future, they plan on building commercial offi ce spaces on their front lot.

“After the construction on the highway is fi nished people will be driving by our place all the time. It will be very conve-nient,” she said.

I-10 Self-Storage has 350 units in a range of sizes and about 75 spaces in the yard for RVs, boats and other vehicles. Th e business off ers move-in specials, promotions and will match lower prices in town (if you can fi nd any). Th ey don’t sell moving supplies but off er their customers clean, secure storage with the best possible customer care.

At the end of the day, that’s really what it’s all about for the Herder women. Th ey want to take care of clients the way they

Manager Jenna Herder

would take care of their own family. “It’s not just a business, it’s a second

home, a family history,” said Jenna. It’s not only part of their own history,

but part of Tucson’s history. It has been a small family business since the beginning and they plan to keep it that way. Th e family built the business from the ground up, so it has a lot of sentimental value.

Working together has made the pair’s relationship stronger.

“I couldn’t ask for a better job. We are mother and daughter, but we are also best friends,” said Jenna. “We’re a team, we sup-port each other 100 percent.”

Customers are treated like family at this home grown business and that’s the way the Herders plan to keep it.

Contact reporter Kaity Sitzman at

[email protected]

Geo

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How

ard

BIZ FACTS

I-10 Self-Storage3273 N. Freeway Road(520) 314-0301Offi ce hours: 9 a.m.-5 p.m. Mondays through SaturdaysGate hours: 7 a.m.-6 p.m. Mondays through Saturdays; 10 a.m.- 6 p.m. Sundays


performing their fl amenco fusion. Tickets are $9 adults, $4 children with discounts for members of the botanical gardens. Buy tickets at the door.

FilmIt’s slim pickings this week for new

releases at the multiplex. Th e only major studio release is the next chapter in the “Ice Age” animated series titled “Continen-tal Drift.” At the Loft Cinema, 3233 E. Speedway, a few fi lms of note are opening this weekend including the French drama “Polisse” about detectives in the French version of Child Protective Services and the stresses they face. Also at the Loft is the edgy horror fl ick “Asylum Blackout” about four cooks who get trapped in an insane asylum during a power failure and end up facing un-medicated homicidal inmates. It’s quite the thrill ride.

Contact Herb Stratford at herb@

ArtsandCultureGuy.com. Stratford teaches

Arts Management at the University of Arizona.

Th is column appears weekly in Inside Tucson

Business.

HERB STRATFORD

ARTS & CULTURE

AVA Amphitheater at Casino Del Sol, 5655 W. Valencia Road, has a great double bill at 8 p.m. Sunday (July 15) featuring the legendary Joe Cocker with opening act 1980s favorite Huey Lewis and the News. Regular ticket prices range from $40 for the lawn area and $55 for the pavilion to premium priced tickets at $125. Buy them online at www.casinodel-sol.com/ava-amphitheater.

More musicTh e summer concert series at Z

Mansion, 288 N. Church Ave., continues tonight (June 13) with “Classic Country Jukebox” featuring performances of classic country music from the 1920s through the 1990s performed by Robert Shaw and Kaci Bays.

I’ve written about this series previ-ously. Patrons can either attend the concert for $23, or make an evening of it, and have dinner at the mansion with the concert for a combined ticket price of $45. Doors open at 6 p.m. and dinner is at 6:30. Buy tickets at lonelystreet.showclix.com or call 1-888-718-4253.

Music and art Th e once-a-month “Twilight Th ird

Th ursday” at the Tucson Botanical Gardens, 2150 N. Alvernon Way, takes place from 5-8 p.m. July 19. Th e program is a family-friendly hands-on event with music, art, food and drink. Th is month’s musical performers are the Gipsy Kings,

OUT OF THE OFFICE

Joe Cocker and Huey Lewis on stage Sunday at Casino Del Sol

MICHAEL LURIA

MEALS & ENTERTAINMENT

Put off by slogan, I missed great food at Th e Parish

One of the advantages of summer is the slower pace around Tucson. Perhaps it’s just the heat zapping our energy.

Regardless, it is a good time to go out and explore restaurants you may not have visited before as I did with friends recently at Th e Parish.

Th ey call themselves a “Southern Fusion Gastropub.” One of my peeves has to do with restaurateurs trying to describe their places with marketing prose that only adds confu-sion to whatever it is they do. It’s “comfort” this or “gastro” that with a mix of “modern” and a pinch of “fusion.” Unfortunately that happened to me regarding Th e Parish.

And all this time I was missing some really good food. We started the evening with some bacon popcorn, which was aptly described on the menu as addictive. It was slightly salty, lightly buttered and an absolute crowd pleaser. Th e crawfi sh hushpuppies with green onion dip was a hit, too.

Another delicious appetizer was a goat cheese relleno served with a balsamic reduction, pico de gallo, bacon and fresh cilantro. For my money, this dish wasn’t Southern, fusion or gastropub, but it sure pleased. So too did the French Quarter gumbo with chicken and andouille sausage.

But for as good as all these were, the most pleasing dish of the night was the lamb chorizo fl atbread with herb aioli, kalamata olive tapenade, fresh cilantro and goat cheese. In addition to a full comple-ment of beer, wine and spirits, Th e Parish specializes in house infused spirits such as

basil vodka, cucumber tequila, cinnamon bourbon and cucumber gin.

Open daily from 11 a.m. to mid-night, Th e Parish is slightly hidden at the north end of a strip center on the northwest corner

of Oracle and Orange Grove roads but it’s well worth the eff ort to seek it out.

• Th e Parish, 6453 N. Oracle Road — www.theparishtucson.com — (520) 797-1233

More ‘happy’ at NorthNorth at La Encantada has expanded its

happy hour to run from 3-7 p.m. weekdays with a reverse happy hour starting at 10 p.m. Fridays and Saturdays. During those hours, there are specials on antipasta and salads, ranging from $3 to $7, with beer priced at $2.50 and well drinks at $4.

Also, through Sept. 11, North is having Monday night pizza parties where you can enjoy a salad, pizza and two glasses of wine (from a special menu) for $25.

• North Modern Italian Cuisine, 2995 E. Skyline Drive in La Encantada — http://foxrc.com/north.html — (520) 299-1600.

Contct Michael Luria at mjluria@

gmail.com. Meals & Entertainment appears

weekly in Inside Tucson Business.


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SMALL BUSINESSIt’s not about what you make, it’s how much you keep

I have enjoyed the good fortune of work-ing with great people during my career. Many of those people dedicated their time, talents and leadership serving on the boards of directors of numerous organi-zations in which I have been involved.

Having access to, and working with, community leaders brings with it many positive experiences, espe-cially for young professionals.

I became good friends with many of those people. Some became mentors. I learned something from each one of them.

I remember one man for his one-liners. He had some good ones and their timeli-ness was just as good as the delivery. He was old school to say the least, and was as genuine a person as I have ever met.

One of the lessons he taught me came just before the economic reces-sion hit in 2008. At the time, every revenue was being exceeded and little attention was being paid to expenses.

“It’s only money…we’ll keep mak-ing more,” was a typical Gen-X re-sponse at the time, which was the result of just naïve arrogance.

Before my ignorant bliss could con-tinue, the man cut me off and said, “It’s not what you make, it’s what you keep.”

Th at statement has resonated with me time and time again, especially dur-ing the last four years when the ultimate reality check crashed the party uninvited and decided to stick around for a while.

I clearly remember when the good times came to a screeching halt. It felt like the music stopped, the party ended, and all that was left were the caterers and band who needed to be paid.

When revenues dried up, we all began to look at our reserves and wondered how long would it be before the next wave would arrive - three months, six?

Now, here it is four years later and many of us feel like we have aged in dog years. Th e upside of that could be that we have perhaps gained 28 years of life experiences.

During this time, we have become so much more aware of expenses. I guess that’s what happens when the focus shifts from hitting it out of the park to fi nding yourself in survival mode and trying to preserve what is left.

I know many of you reading this are nodding your head because you know exactly where I’m coming from.

Fortunately, businesses today have more options than ever to help reduce costs and keep more money. Th is is espe-cially true for small businesses that previ-ously did not have the purchasing power

that exists for them today.

Trade associa-tions and cham-bers of commerce across the country are now focused on leveraging the collective purchasing power of their members to provide them

with lower pricing and better terms. Vendors of products and services

like it because these associations pro-vide them friendly access to their target market. Th ey sell their product, and the discounts they give are recouped from decreased marketing expenses. It’s a win-win for all concerned.

Like many trade associations, the Ari-zona Small Business Association (ASBA) has gone through some changes in recent years. What came out of it was a robust program to help members save money on many of the products and services they are already spending money on.

ASBA now has a subsidiary called Arizona Small Business Benefi ts that lever-ages the purchasing power of thousands of small businesses across the state to help them reduce costs and increase their bot-tom line. Many of these savings are on es-sential business products and services such as insurance, credit card processing and offi ce supplies. Each vendor is carefully selected to provide pre-negotiated pricing.

ASBA’s mission has evolved, and one of our top priorities these days is to help businesses save money. We also recog-nize our good fortune to have so many well-run chambers of commerce, trade groups and leads groups in Arizona helping local businesses make money. We sup-port their eff orts and encourage you to belong to your local chamber of commerce and the trade association that represents your industry. Th ese organizations work and they help you make more money.

Moving forward, let’s keep in mind the lessons learned during the economic recession and take advantage of oppor-tunities to save your business money.

It’s not what you make, it’s what you keep.

Jerry Bustamante is senior vice president of public policy and oversees the Southern Arizona offi ce of the Arizona Small Business Association, 4811 E. Grant Road, Suite 262, in Crossroads Festival, phone (520) 327-0222.

JERRY BUSTAMANTE


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Film incentives could bring blockbuster business to regionAs director of the Tucson Film Offi ce at

the Metropolitan Tucson Convention and Visitors Bureau, I love my job. My mission is to market Tucson and Southern Arizona as a production location for feature fi lms, television series and commercials for their potential economic impact. It’s like fi shing — but in a multi-billion dollar fi lm industry pond where sharks, like Disney and Warner Bros., swim with the smaller fi sh like cable networks, independent fi lmmakers and commercial production companies.

My department lures the bigger fi sh with photos of great Southern Arizona locations, heroic tales of our local crew base and our willingness to go the extra mile. Once they’re hooked, we get down to the business of fi nding lodging, facilitat-ing street closures, securing permits and dealing with a variety of unusual requests.

Need a local goat wrangler? Check.A skydiving stunt coordinator? Check. Can we blow up that store front on

Congress Street? Umm…let me check.Th e Tucson Film Offi ce caught plenty

of fi sh this past fi scal year. We facilitated more than 60 projects that added up to thousands of hotel room nights and almost $6 million in direct expenditures that resulted in $8.9 million in estimated economic impact. Of that, 40 percent came from TV commercials, including two that ran during Super Bowl XLVI.

Another 30 percent percent came from reality television shows, including multiple episodes of the Food Network’s “Chopped,” TNT’s “Th e Great Escape” and single episodes of programs for Discovery, National Geographic, A&E and BBC, to name a few. Th e remaining 30 percent was an eclectic mix of documentaries, music videos, short fi lms and print catalog shoots.

What’s miss-ing? Th ere was not one shark in the net. Most of the large-scale studio projects we tried to hook were landed instead by New Mexico or Utah, who had statewide motion picture

tax incentive programs to use as bait. In fact, today more than 35 states and several countries have programs to lure “location fi lming,” a highly competitive, multi-billion dollar global industry that not only brings jobs and economic impact to a region but has the potential to increase future tourism revenues as well. Arizona does not have such a program, but not for lack of trying.

For the second year in a row, an Arizona Motion Picture Tax Incentive Bill (HB 2127) wound its way through the Legislature only to end up on the House cutting room fl oor, despite success in the Senate; hence, Arizona will not net any big-budget studio features or long-running TV series again this fi scal year.

HB 2127 would have given qualifi ed studios and production companies who fi lmed here 20 percent back on their Arizona taxable expenditures. It would have given them a fi ve percent bump for hiring resident crew and/or for investing in Arizona-based studios. It would have allowed Arizona a chance to compete with the 35 other states — particularly our neighbor to the east, New Mexico. Since 2008, New Mexico has aggressively marketed a 25 percent rebate and, as a result, they’ve documented more than $200

million in direct spending each year. Plus through their Workforce Development and Film Crew Advancement Programs, they’ve signifi cantly increased job op-portunities for New Mexico residents.

Th is year there was a spectacular grassroots eff ort to get HB 2127 passed, and Southern Arizona led the way. Th e list of Tucson, Oro Valley and Pima County businesses, government offi cials, institu-tions, periodicals and the hundreds of private citizens who asked legislators to support the bill is long and impressive. Our eff orts were eff ective, as nearly every Southern Arizona Senator voted in favor of the legislation and many of our repre-sentatives in the House promised their votes — had the bill made it that far.

Why then, for the second year in a row, did the Speaker of the House decide to hold the bill and not allow a fl oor vote? I can only speculate, but what seems obvi-ous to me is that despite vast statewide support, despite economic impact studies

showing positive returns, despite Disney executives coming to the state capitol to say they want to bring multimillion dollar projects here, there’s no political will for a fi lm incentive program among House leadership and the Governor’s offi ce.

Th ere is still, however, plenty of will in the Arizona fi lm and tourism industries, in our bureaus, chambers of commerce and city and county governments. Th ere is still will among those in the construc-tion trades, in our universities and com-munity colleges and especially in our residents who know that Arizona des-perately needs the economic boost this, virtually recession-proof, green industry can bring to a region. We’ll be work-ing on the sequel. Look for it in 2013.

Contact Shelli Hall, director of the

Tucson Film Offi ce. at [email protected].

Th e fi lm offi ce’s website is www.fi lmtucson.

com . Th is monthly column is prepared by the

MTCVB.

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What your PR professional does for the money you pay

You’ve made the decision to retain the services of a public relations profes-sional. Public and media relations is a service rendered by consultants and it’s probably foreign territory to you, so it’s important to have a clear understand-ing of work product, expectations, and billing models before you begin.

PR billing is based on the time and eff ort needed to craft a campaign, com-plete the work, and meet your goals and objectives, often including researching and other “behind the scenes” work.

PR is billed in several ways: an hourly rate; a base fee plus an hourly rate; a fl at project fee; or by monthly retainer. Th ere is a “pay for performance” model which is paid on results only, but this often proves to be more costly to the client.

Before beginning, discuss your budget and ask for an estimate of time and expens-es. Agree on which billing model will be used. Remember that even if your PR pro-fessional is freelance or self-employed, they still have overhead costs, professional fees, taxes, insurance and other expenses to pay.

Understanding the steps involved in any PR project may help you un-derstand the billable time involved.

Time is spent learning about you, your business, service, or product. Target market(s) must be identifi ed using geo-graphic, demographic, psychographic, or a combination of factors. If you don’t have this information, research will be neces-sary. Th is will save you time and money in the long run. Even a simple press release must be targeted. Skipping this step is like throwing darts blindfolded. You’re lucky to hit the wall, let alone hit a bullseye.

Creative campaign(s) are developed be-cause each media outlet has a diff erent edi-torial focus, guidelines, editorial calendars, and unique audiences, several approaches or media angles may be necessary.

For example, a pitch to a trade publi-cation on a manufacturer’s new product may be technical whereas a pitch on the same product to a consumer publication would be focused on end-user benefi ts.

Today there are thousands of media outlets including TV, radio, consumer print, trade print, Internet, blog sites, newspa-

pers, newslet-ters, and more to choose from. To reach your target and meet your goals, time may be spent determining the best options.

It makes no sense to send infor-

mation on a new product for women’s hygiene to a publication whose edi-torial focus is woodworking.

Once the media is identifi ed — espe-cially if you are hoping for a feature article — further research may be necessary to make sure they haven’t done a similar story in the past year or two (media outlets don’t usually revisit a story they have re-cently done) and that your story or product matches their editorial focus as well as determining where the story best fi ts.

Determining who at each media outlet to pitch can be challenging since each outlet titles their staff diff erently.

Sometimes the same title at two diff erent outlets can have entirely dif-ferent responsibilities. TV and radio shows can have many producers.

Th e actual pitching and follow-up process involves calls and emails. It may take several outreaches and sev-eral diff erent ideas before securing your article, interview, or segment.

Your PR professional is your partner in this journey.

Working through billing issues be-fore beginning helps avoid questions or problems as you travel this road together.

No matter who you choose or how they bill, their main goal is to gener-ate excellent results for you, stay within your budget constraints, and to develop a long-lasting relationship with you.

Contact Carol Saferin, president of

Mart Saferin & Associates, at carol@

martsaferin.com . She is a member of the

Public Relations Society of America,

Southern Arizona chapter, whose members

produce this monthly column.

PR CORNER

CAROL SAFERIN


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Savannah Guthrie knew whatshe wanted and went for it By David HatfieldInside Tucson Business

She never asked for it — nor was I dumb enough to off er it — but if she had taken my advice, Savannah Guthrie wouldn’t have started this week as the new co-anchor of NBC’s “Today” show. Instead, I thought she could have been our star local news anchor.

Shows you what I know.Guthrie was our weekend news anchor

at KVOA 4 for about fi ve years starting in 1995. We knew from audience research at the time that Guthrie was destined for big things in a broadcast journalism career.

I remember our general manager, the late Jon Ruby, would sometimes scratch his head over her on-air wardrobe but audiences took a liking to her.

In my mind I believed Guthrie was on a path to climb the news anchor ranks at KVOA — despite some heavy local hitters already anchoring the high-profi le news-casts.

So I was shocked when in 2000 Guthrie decided to toss that aside and go for a law degree at Georgetown University. Here I thought she was giving up a sure thing in an unsure industry. And for what?

I remember asking her what she intended to do with a law degree. She envisioned a day when she could combine her knowledge of the law and her media career. Ruby connected Guthrie with the general manager at the NBC-owned station in Washington, D.C., where she worked for a couple of years. She parlayed that into a job with Court TV while at the same time working for a law fi rm in Washington. Th en in 2008, she joined NBC News, where she was a White House correspondent and chief legal correspondent before joining the “Today” show last year.

Since she left Tucson, I’ve only talked with her twice — once when she came back a few years later to visit KVOA and then last year when she came back to give the commence-ment speech at the University of Arizona.

I was traveling when the turmoil hit two weeks ago over Ann Curry leaving and Guthrie being tapped to be the new main co-host of “Today.” Reports I read referred to the meteoric rise in Guthrie’s career.

I’m not sure that was the case. What audiences across the nation saw this week on “Today” are the same kinds of things Tucson viewers saw in Guthrie more than a decade ago. She’s smart. She’s genuine. She also doesn’t seem to take herself too seriously. Th at’s why audiences like her.

A Tucsonan succeeds. Good for her.

Names in newsRyan Clune arrives next week as the

new director of sales for Clear Channel

Media and Entertainment’s Tucson radio stations. Clune comes to Tucson from Denver where he has been local sales manager for Clear Channel’s seven-station group there. In Tucson, Clune replaces Steve Clement who in March moved to Clear Channel’s Phoenix group. Since then there have been other management changes, including the arrival last month of Glynn Alan in the newly created regional market manager position that also has him overseeing the company’s stations in Las Vegas and El Paso from Tucson.

Th ere have been some changes in responsibilities at Good News Communi-cations where Christina Willits is now operations manager for the group’s four Tucson radio stations and Ray Alan is operations assistant. Long-time local broadcaster Ed Alexander has been named promotions director for the company’s news-talk station the Voice KVOI 1030-AM and pop classics station KCEE 690-AM. He continues to produce KVOI’s early morning “Wake Up, Tucson” talk show hosted by Chris DeSimone and Joe Higgins and is program director of KCEE. Meanwhile Terry Laff erty, who had been promotions director for all the stations, will now focus on the company’s two Christian stations, talk outlet KGMS 940-AM and contempo-rary music station K-Love KLTU 88.1-FM as well as church outreach.

Kayla Anderson has been named the new weekend sports anchor at KGUN 9. She is due to start Aug. 20. Anderson is coming from Missoula, Mont., where for the past three years she has been sports director at the NBC affi liate. Before that she worked for about a year and a half as a sports reporter at KXLY, the ABC affi liate in her hometown, Spokane, Wash.. Anderson replaces Jake Knapp who left KGUN at the end of May to return to Phoenix.

Rob O’Dell, who made a name for himself as the Arizona Daily Star’s reporter covering Tucson city government for six years, is leaving Tucson to take a job as a reporter for the Arizona Republic in Phoenix starting next month. Last October O’Dell was named the Star’s “computer assisted reporter,” in which he crunches data to seek out trends. Before coming to the Star in 2005 he worked for the North County Times in northern San Diego County and the Hamilton Journal-News in Ohio.

Contact David Hatfi eld at

dhatfi [email protected] or (520) 295-4237.

Inside Tucson Media appears weekly.

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Central TucsonJacobs/City YMCA623-92111010 West Lind Street 85705also transports from 11 schoolsLighthouse/City YMCA795-97252900 N. Columbus Blvd. 85712Fruchthendler Elementaryalso transports from 10 schools

South Tucson and Sahuarita838-0936

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BEFORE AND AFTER SCHOOL LOCATIONSEast Tucson and Vail885-2317

Ott Family YMCA401 S. Prudence Rd.Academy of TucsonCottonwood Elementary SchoolDesert Willow Elementary SchoolDietz Elementary SchoolErickson Elementary SchoolHenry Elementary SchoolOcotillo Ridge Elementary SchoolSycamore Elementary SchoolWheeler Elementary School

PRESCHOOL LOCATIONSYMCA Holsclaw Child Care Center • 222 N. Church Ave. 623-9211YMCA Mulcahy/City • 5085 S. Nogales Hwy. 838-0936Ott Family YMCA • 401 S. Prudence Rd. 885-2317Ott Preschool at Henry Elementary • 650 N. Igo Way 885-2317

GET ON THE LISTNext up: Universities and colleges, Specialty and technical schools

Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are:

• July 20: Public school districts, Private elementary schools, Private secondary schools, Charter schools

• July 27: Universities and colleges, Specialty and technical schools

• Aug. 3: Health maintenance organiza-tions, preferred provider organizations and indemnity plan providers, Supplemental plans and Childcare providers

• Aug. 10: Business and industrial parks, Commercial office, Shopping centers

• Aug. 17: Asset management firms, Aeronautical firms

If your business fits one of these catego-ries, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can cre-ate a profile by following the directions.

The Book of Lists is a year-round refer-ence for thousands of businesses and indi-viduals. To advertise your business, call (520) 294-1200.

NEW IN TOWNIT fi rm Integrilogic moves to larger digs

Integrilogic Corporation has moved into a larger building located at 1931 W. Grant Road, Suite 130.

Integrilogic was established by Bruce Groen in 1999. Th e company specializes in informa-tion technology, networking administration, managed services, help desk, hardware and software sales and backup disaster recovery.

Its website is www.integrilogic.com.

MANUFACTURING Raytheon ‘kill vehicle’ gets $636M contract

Raytheon Missile Systems will develop its Exoatmospheric Kill Vehicle (EKV), a device meant to intercept and destroy incoming missiles as a major component to Boeing Co.’s gound-based mid-course defense program

Th e contract is worth $636 million to Raytheon, according to an announcement this week at the Farnborough International Airshow in England.

Raytheon says the EKV uses “an infrared seeker in a fl ight package... to detect and discriminate the incoming warhead from other objects.” Th e vehicle is already de-ployed and operational and has had eight successful intercepts. However, a failed in-tercept test in December 2010 prompted the Missile Defense Agency to halt shipments of

it, according to congressional reports by the Government Accountability Offi ce.

Under the new contract, development and testing of the EKV will continue through November 2018.

UTILITIES/ENERGYSolon building solar watertreatment plant for Gila Bend

Solon Corp., headquartered at 6950 S. Country Club Road, has begun construction on a 460-kilowatt photovoltaic system for the Town of Gila Bend’s reverse osmosis wa-ter treatment facility.

Once completed, it’s anticipated Gila Bend’s energy usage for the treatement fa-cility will be reduced by 86 percent.

Solon is engineering, designing and con-structing the fi xed-tilt system which it ex-pects to complete this year. Once it’s fi n-ished, Solon will continue to operate and maintain it for the town.

Solon built a 21-megawatt, single-axis tracking system for Gila Bend last year.

INFORMATION TECHNOLOGYNextrio seeks nominations for administrator award

Tucson-based information technology consulting fi rm Nextrio is looking for nomi-nations for the best computer systems ad-ministrator in Southern Arizona.

Th e deadline for submissions is noon July 24.

Th en, on July 27, Tucson System Admin-istrator Day 2012, the winner will receive a $500 American Express gift card and the nominator will receive a $100 gift card.

Th e Tucson celebration, sponsored by Nex-trio, is being held in conjunction with the na-tional System Administrator Appreciation Day, celebrated annually on the last Friday of July.

SMALL BUSINESSFederal procurement is topic for chamber workshop

Th e Tucson Metro Chamber’s Military Aff airs Committee will hold a workshop next week called “Growing Business through Federal Procurement.”

Th e workshops are designed to help businesses understand the federal purchas-ing process. It will take place from 8-9:30 a.m. Th ursday (July 19) at the Tucson Metro Chamber’s offi ces, 465 W. St. Mary’s Road.

Items to be covered in the workshop: • Th e language of federal procurement• How to register as an approved vendor

for Davis-Monthan Air Force Base and other federal agencies

• How to access and take advantage of purchasing notices

• Strategies to position your company in partnership with other approved vendors.

Th e workshop costs $20 for chamber members and $99 for non-members. Regis-

BRIEFSter by Tuesday (July 17) at www.Tucson-Chamber.org.

LEGALGHCC Care Center is busted for selling pot

A two-month investigation by the Coun-ter Narcotics Alliance resulted in the arrest of two men and two women at GHCC Care Center, 3359 N. Freeway, all of whom were charged with one count of unlawful posses-sion of marijuana and one of count of un-lawful possession for sale.

Th e arrests took place Tuesday (June 10) as offi cers served a search warrant at the business. Additionally, several pounds of high-grade marijuana were seized and an il-legal indoor marijuana grow was found within the facility.

Law enforcement offi cials said they planned to release the names of the arrested individuals on Th ursday. GHCC stands for Green Halo Caregiver Collective. Th e facility was located on the west side of Interstate 10 south of Prince Road.

U.S. goes public to fi ndborder agent’s killers

Federal offi cials are off ering a $1 million reward for information leading to the arrests of four Mexican nationals charged in the

shooting death of U.S. Border Patrol Agent Brian Terry near Rio Rico and whose killing has since been linked to the notorious “Fast and Furious” gun-smuggling operation.

Th e million-dollar bounty off er was made Monday as Justice Department offi -cials unsealed an indictment charging fi ve men with involvement in the murder during a December 2010 shootout in Arizona near the Mexican border. One of the fi ve is al-ready in federal custody.

It is unclear why Justice Department of-fi cials decided now to make the nine-page indictment public. A federal grand jury re-turned the charges in November. Such charges are routinely kept under seal to avoid tipping off indicted suspects before federal agents can locate and arrest them.

“Th is investigation has previously result-ed in one defendant being charged with Agent Terry’s murder and taken into custo-dy,” Holder said in a statement. “Today’s an-nouncement refl ects the department’s un-relenting commitment to fi nding and arresting the other individuals responsible for this horrifi c tragedy.”

Th e attorney general added: “Agent Terry served his country honorably and made the ultimate sacrifi ce in trying to protect it from harm, and we will stop at nothing to bring those responsible for his murder to justice.”

Th e Mexican nationals charged in the murder were allegedly part of an armed


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group that robbed marijuana traffi ckers as they transited the border region. Two as-sault weapons recovered at the scene were later traced to the Fast and Furious under-cover operation.

Former Pima judge is new U.S. Attorney for Arizona

Pima County Superior Court Judge John S. Leonardo is the new U.S. Attorney for Ari-zona after being sworn in July 3. He was confi rmed June 29 by the full U.S. Senate.

Leonardo fi lls the federal prosecutor’s

job held by former U.S. Attorney Dennis Burke, who resigned in August during the investigation of Operation Fast and Furious, the botched “gun-walking” operation in the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Phoenix offi ce.

Leonardo was a Pima County Superior Court judge from 1993 until February this year, when he retired from the bench.

From 1973 to 1982, he was an assistant U.S. attorney for the Northern District of In-diana, before becoming an assistant U.S. at-torney for Arizona. He held that job from 1982 to 1993, when he became a judge.

Th e U.S. Attorney for Arizona has three responsibilities, according to the offi ce’s website: prosecuting federal criminal cases; prosecuting civil cases brought by the Unit-ed States or defending the government from civil suit; and collecting federal debts that are “administratively uncollectible.”

ENTERTAINMENT/SPORTS Tucson Parks Foundation sponsors ballpark night

Th e Tucson Parks Foundation is spon-

soring its second annual Night at the Ball-park with the Tucson Padres and their game against the Reno Aces, at 7:05 p.m. Wednes-day (July 18) at Kino Stadium, 2500 E. Ajo Way.

Discounted general admission tickets are available for $4 from the Tucson Parks Foundation website, www.tucsonparks.org.

All fundraising from this event helps to support Tucson Parks and Recreation KID-CO programs.

HUMAN RESOURCESMilitary veterans getworkforce center

On Monday (July 16), Pima County will open the nation’s fi rst workforce center for military veterans at its Kino Service Center, 2979 E. Ajo Way. Under program manager Art Burrola, the Kino Veterans Workforce Center will work with the business commu-nity to help veterans fi nd jobs and receive training, benefi ts and support services.

Th e center is a partnership of the Pima County One-Stop Career Center with the U.S. Departments of Defense and Veterans Aff airs, the Arizona Departments of Veter-ans Services and Economic Security, Pima Community College, Community Partner-ship of Southern Arizona, the Pima County Health Department and Old Pueblo Com-munity Services. A grand opening will be held at a later date.

Companies that hire unemployed veter-ans by Jan. 1, 2013 may qualify for up to a $2,400 Returning Heroes tax credit or up to a $9,600 Wounded Warrior tax credit when certain conditions apply. Burrola can be reached is at [email protected] or (520) 798-0508.

CIVICOro Valley chamber seeksPinnacle Award nominees

Th e Greater Oro Valley Chamber of Com-merce is looking to recognize business achievement and community contributions with its annual Pinnacle Awards to be given out at a breakfast Aug. 23.

Nominations are now open from small, mid-size and large businesses as well as community leader and nonprofi t awards.

Dave Perry, president and CEO of the chamber, says this year’s nomination pro-cess has been simplifi ed to one page and a paragraph about a person or business that should be recognized. Th e nomination form is online at www.orovalleychamber.com, or at the chamber offi ce, 7435 N. Oracle Road, Suite 107. Th e deadline for nominations is July 20.

Registration for the Aug. 30 breakfast is also open. Greg Byrne, director of athletics at the University of Arizona, will be the guest speaker. To attend, contact the chamber by emailing [email protected] or call (520) 297-2191. Cost is $30 per person.

BRIEFS


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PEOPLE IN ACTION

To announce a professional promotion, appointment, election, new hire or other company personnel actions, fax press releases to (520) 295-4071, Attention: People; or email submissions to [email protected]. Include an attached photo at 300 dpi.

{YOUR NAME HERE}held a senior leadership position with Pet Partners (formerly known as Delta Society), an international non-profi t focused on how animals improve people’s health and well-being.

ABCO Solar has hired Steve Hopkins. Hopkins has been as an electrician since 1989. He owned an operated an electrical contracting business for eight years. Hopkins attended Alpena

Community College in Michigan and graduated with a certifi cate as a utility technician. Hopkins also earned a diploma from Pima Community College after completing

NEW HIRES

The Community Food Bank of Southern Arizona has hired Sio Castillo as its major gifts offi cer. Castillo formerly was community outreach director to former Tucson Mayor Bob Walkup. She has a bachelor of science in health service administration from The University of Arizona and a masters of public administration in nonprofi t management from Troy University in Troy, Alabama.

Community Food Bank of Southern Arizona has hired Michael Mandel as director of development. Mandel has served as director of housing services for the Primavera Foundation, vice president of external affairs for Planned Parenthood

of Southern Arizona and communications director of Southern Arizona Center Against Sexual Assault. He has a bachelor of arts in drama from Ithaca College in Ithaca, New York, and will complete his master of business administration from the University of Arizona Eller College of Management in November.

Doug Huie is now a project manager for Kittle Design and Construction. Huie has more than 30 years of construction and architectural collaboration experience.

Handi-Dogs has hired JoAnn Turnbull as president and CEO. Turnbull has extensive senior management experience in both for-profi t and nonprofi t work. She most recently

a fi ve-year electrical apprenticeship program.

ELECTIONS

Dan Blumenthal, of Blumenthal Design Group

LLC, has been elected president of Catalina Rotary Club of Tucson. The Catalina Rotary Club also has elected its offi cers for 2012-2013. They are: Jo Anne Westerman, president-elect; Steve Pender, secretary; Kathy Ramert, treasurer. Board members are Carrie Allen, Al Chesser, Paul Bennett, Bob DeLaney, Kevin Horstman, and Bob Stofft.

MICHAEL MANDEL DOUG HUIE

SPECIAL EVENTS

Marana Aerospace Solutions - DinnerSouthern AZ Logistics Education Org. (SALEO)Wednesday (July 18) 5:30 to 8:00 p.m.Viscount Suite Hotel 4855 E. BroadwayRSVP by July 17 noon: [email protected] or (520) 977-3626Cost: $30 ($25 members & 1st-timers, $10 students)

Nike, The Brand ExperienceThursday (Aug. 23)7 to 10 a.m.The Westin La Paloma Resort & Spa 3800 E. Sunrise Drive Join the Tucson Metro Chamber and Pima Federal Credit Union in welcoming Nike executive, Loren Hoppes to hear about the Nike brand identity.Contact: Arlene [email protected] 792-2250 x135Cost: $45/members; $65/non/members

www.tucsonchamber.org

REGULAR MEETINGS

Inside ConnectionsSecond and fourth Wednesday, 7:15 a.m.Home Town Buffet5101 N Oracle RoadRSVP: Eric Miller at (520) 979-1696

Institute of Management AccountantsThird Thursday, (September through May) 6:30

p.m. to 8 p.m.Old Pueblo Grille60 N. Alvernon WayRSVP: Gale McGuire (520) 584-3480 or [email protected]

International Association of Administrative ProfessionalsSan Xavier Chapter monthly dinner & professional development meeting Every third Wednesday, 5:30 to 8 p.m.Sheraton Four Points Hotel1900 E. Speedway

RSVP: Kay at [email protected] or (520) 883-1819Cost: $18 members, $20 nonmembers, includes dinner

“Real Estate Investment Plan”Keller Williams Southern Arizona1745 E. River Road, Ste. 245Third Tuesday6 p.m.Workshop for individuals considering investment RSVP by noon Mondays (520) 909-9375

Kiwanis Club of Oro ValleyWednesdays, 7 a.m.Holiday Inn Express 10150 N. Oracle RoadInfo: [email protected]: $8

LeTip MidtownEvery Tuesday, 7:01 to 8:31 a.m.El Parador Restaurant 2744 E. BroadwayRSVP: (520) 296-9900Cost: $10

CALENDAR

JOANN TURNBULL

The Greater Tucson chapter of the National Association of Women Business Owners has elected its board for 2012-2013. The leadership team includes: Dianne Kelley, Sandbroo Benefi ts Group LLC, president; Patty Richardson, Casa Linda Designs, LLC, president-elect; Beth Dannheim, Beth Danheim Agency, Inc., secretary; Reba Kalil, Kalil & Associates, treasurer. Board members at large are Marian Abram, Karp & Weiss; Jan Acorn, Gateway Destinations, LLC; Rosemary Beck, TimeTrak Systems of AZ; Colleen Concannon, The Historic Manning House; Korina Gregg, AIM Solutions; Ellen Kirton, EffortlessHR; Roberta Latham, Primerica, Inc.; Margaret Roberts, Adult Care Hunters LLC; Bobbi

Still, Affi nity for Design; and Jan Woods, Veterinary Specialty Center of Tucson. Other board members include: Deborah Alter, Alter & Alter, CPA’s, PC; Morella Bierwag, Let’s Go Communications, LLC; and Michelle Martin, Martin Insurance Consultants.

ACCREDITATIONS

Stantec is pleased to announce that James Wright has received his professional engineering license in Arizona. Wright is a civil engineer with six years of professional experience in the design of residential, commercial, retail, educational and industrial developments throughout Southern Arizona.

SIO CASTILLO

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FINANCEYOUR MONEY

Could your legacy benefi t from a repositioning strategy?

You’ve worked hard and planned diligently to accumulate wealth for you and your family. In fact, you have accumulated suffi cient assets to see you through retirement. Yet, assets that you don’t use become part of your estate and are taxable — at rates as high as 35 percent (tax rate set to expire on Dec. 31, 2012). Fortunately, you may be able to implement one of several strategies that could help reduce your potential estate tax liability and maximize the legacy you plan to leave to your loved ones.

Many individuals are incorporating an asset repositioning strategy — using income from existing assets to purchase life insurance within a trust — into their overall wealth management plan. If implemented correctly, the repositioning strategy can potentially provide loved ones with an inheritance that is not subject to estate or income tax.

Life insurance is a key element of most successful asset repositioning strategies. Unlike stock, real estate or other assets that fl uctuate in value, life insurance generally off ers the ability to leave heirs a specifi ed amount and provides a death benefi t that is usually tax-free from income taxes.

However, since life insurance, like your other assets, is considered part of your estate and is therefore subject to estate taxes, you may be able to reduce any poten-tial estate tax liability by establishing an Irrevocable Life Insurance Trust (ILIT) and naming it both owner and benefi ciary of your life insurance policy. Your heirs serve as benefi ciary of the trust itself.

If properly structured, an ILIT may protect your assets from creditors and legal judgments as a result of divorce, lawsuits and bankruptcy proceedings so you can be sure that your assets will pass to your loved ones without confl ict or diminution. A fi nancial advisor can help you determine whether an asset repositioning strategy is suitable given your wealth management objectives.

Th e type of repositioning strategy you choose will depend on two main factors: your individual wealth planning goals and the assets you own. Generally, any income-generating asset can be used in a reposi-tioning strategy, however, the most commonly repositioned assets are deferred

annuities, cash, certifi cates of deposits (CDs), money market accounts/funds, traditional Individual Retire-ment Accounts (IRAs), municipal bonds and qualifi ed plans, such as 401(k) and

403(b) accounts. It is important to remember that not

everyone with income-generating assets may be suitable for a repositioning strategy. Additionally, asset repositioning strategies are most successful when incorporated as part of an overall wealth management approach. You might consider an asset repositioning strategy if:

• You have met your retirement savings target and have additional assets that you do not need for retirement income

• You have a potential estate tax liability• You want to reduce the impact of

income taxes and estate taxes on the assets you leave to your loved ones

• You want more control over who receives your assets and how those assets are used.

Your window is open, but not indefi -nitely. After Dec. 31, 2012, Congress may keep current gift and estate tax exemption limits where they are, raise them, lower them or eliminate them altogether. Now is the time to consider strategies that may help you reduce your potential tax liability and enable you to transfer wealth to future generations.

Contact W. David Fay, a second vice

president in wealth management and

fi nancial advisor with Morgan Stanley Smith

Barney, at http://fa.smithbarney.com/

thefaymillergroup or (502) 745-7069. Th e

securities/instruments discussed in this

material may not be suitable for all investors.

Any particular investment should be

analyzed based on its terms and risks as they

relate to your specifi c circumstances and

objectives. Tax laws are subject to change.

Morgan Stanley Smith Barney does not

provide tax or legal advice.

W. DAVID FAY

TUCSON STOCK EXCHANGEStock market quotations of some publicly traded companies doing business in Southern Arizona

Company Name Symbol Jul. 11 Jul. 3 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.04 0.05 -0.01 0.04 0.52CDEX Inc CEXIQ.OB 0.01 0.01 0.00 0.01 0.10Providence Service Corp PRSC 13.26 13.84 -0.58 8.35 15.94UniSource Energy Corp (Tucson Electric Power) UNS 39.54 39.25 0.29 32.96 39.56

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 8.35 8.90 -0.55 8.21 16.04AMR Corp (American Airlines) AAMRQ 0.54 0.53 0.01 0.20 5.35Augusta Resource Corp (Rosemont Mine) AZC 1.69 1.90 -0.21 1.48 5.55Bank Of America Corp BAC 7.63 8.06 -0.43 4.92 10.36Bank of Montreal (M&I Bank) BMO 56.46 56.60 -0.14 50.95 65.79BBVA Compass BBVA 6.31 7.13 -0.82 5.57 11.32Berkshire Hathaway (Geico, Long Cos) BRK-B* 84.09 83.78 0.31 65.35 84.41Best Buy Co Inc BBY 19.37 21.77 -2.40 17.53 31.56BOK Financial Corp (Bank of Arizona) BOKF 57.59 58.12 -0.53 43.77 59.59Bombardier Inc* (Bombardier Aerospace) BBDB 4.01 4.02 -0.01 3.30 6.62CB Richard Ellis Group CBG 15.55 16.37 -0.82 12.30 23.94Citigroup Inc C 25.87 27.65 -1.78 21.40 40.50Comcast Corp CMCSA 31.73 32.03 -0.30 19.19 32.50Community Health Sys (Northwest Med Cntrs) CYH 27.66 27.57 0.09 14.61 28.79Computer Sciences Corp CSC 23.18 25.10 -1.92 22.80 38.08Convergys Corp CVG 14.92 14.94 -0.02 8.49 15.00Costco Wholesale Corp COST 94.50 94.42 0.08 70.22 95.55CenturyLink (Qwest Communications) CTL 39.92 39.61 0.31 31.16 40.54Cvs/Caremark (CVS pharmacy) CVS 46.90 47.87 -0.97 31.30 48.31Delta Air Lines DAL 11.09 10.77 0.32 6.41 12.25Dillard Department Stores DDS 63.22 63.41 -0.19 38.99 72.46Dover Corp (Sargent Controls & Aerospace) DOV 51.06 54.23 -3.17 43.64 67.61DR Horton Inc DHI 17.88 18.31 -0.43 8.03 18.98Freeport-McMoRan (Phelps Dodge) FCX 32.36 35.22 -2.86 28.85 56.78Granite Construction Inc GVA 25.97 25.99 -0.02 16.92 30.49Home Depot Inc HD 51.67 51.65 0.02 28.13 53.28Honeywell Intl Inc HON 53.70 55.77 -2.07 41.22 62.00IBM IBM 185.25 195.93 -10.68 157.13 210.69Iron Mountain IRM 31.21 32.44 -1.23 27.10 35.79Intuit Inc INTU 57.34 60.15 -2.81 39.87 62.33Journal Communications (KGUN 9, KMXZ) JRN 5.28 5.25 0.03 2.69 5.72JP Morgan Chase & Co JPM 34.59 35.88 -1.29 27.85 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 30.75 31.62 -0.87 25.73 37.58KB Home KBH 9.65 9.82 -0.17 5.02 13.12Kohls Corp KSS 47.55 44.26 3.29 42.14 57.39Kroger Co (Fry's Food Stores) KR 22.81 22.92 -0.11 21.14 25.85Lee Enterprises (Arizona Daily Star) LEE 1.60 1.64 -0.04 0.49 1.81Lennar Corporation LEN 29.98 31.03 -1.05 12.14 31.90Lowe's Cos (Lowe's Home Improvement) LOW 26.67 27.62 -0.95 18.07 32.29Loews Corp (Ventana Canyon Resort) L 40.35 41.34 -0.99 32.90 41.80Macerich Co (Westcor, La Encantada) MAC 58.92 60.08 -1.16 38.64 62.83Macy's Inc M 33.15 33.39 -0.24 22.66 42.17Marriott Intl Inc MAR 38.03 39.25 -1.22 25.49 40.45Meritage Homes Corp MTH 34.77 34.30 0.47 13.68 35.75Northern Trust Corp NTRS 46.66 46.61 0.05 33.20 48.31Northrop Grumman Corp NOC 62.82 63.93 -1.11 49.20 67.25Penney, J.C. JCP 20.30 21.88 -1.58 20.06 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 10.54 10.83 -0.29 3.29 11.22Raytheon Co (Raytheon Missile Systems) RTN 55.31 56.55 -1.24 38.35 56.82Roche Holdings AG (Ventana Medical Systems) RHHBY 42.78 43.44 -0.66 36.50 46.40Safeway Inc SWY 17.98 17.97 0.01 15.93 24.28Sanofi -Aventis SA SNY 36.91 38.21 -1.30 30.98 40.02Sears Holdings (Sears, Kmart, Customer Care) SHLD 56.38 60.23 -3.85 28.89 85.90SkyWest Inc SKYW 7.85 6.74 1.11 6.25 15.34Southwest Airlines Co LUV 9.56 9.29 0.27 7.15 11.07Southwest Gas Corp SWX 44.94 43.73 1.21 32.12 45.13Stantec Inc STN 27.58 28.33 -0.75 20.96 32.79Target Corp TGT 59.79 57.58 2.21 45.28 59.96TeleTech Holdings Inc TTEC 16.20 16.24 -0.04 14.04 22.10Texas Instruments Inc TXN 27.30 28.56 -1.26 24.34 34.24Time Warner Inc (AOL) TWX 38.10 38.90 -0.80 27.62 39.24Ual Corp (United Airlines) UAL 24.79 24.00 0.79 15.51 25.84Union Pacifi c Corp UNP 116.52 118.95 -2.43 77.73 119.94Apollo Group Inc (University of Phoenix) APOL 32.44 36.62 -4.18 30.93 58.29US Airways Group Inc LCC 14.12 13.20 0.92 3.96 14.42US Bancorp (US Bank) USB 32.28 32.58 -0.30 20.10 32.98Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 72.26 70.75 1.51 48.31 72.58Walgreen Co WAG 29.94 29.64 0.30 28.53 43.30Wells Fargo & Co WFC 33.27 33.48 -0.21 22.58 34.59Western Alliance Bancorp (Alliance Bank) WAL 9.10 9.50 -0.40 4.44 9.53Zions Bancorp (National Bank of Arizona) ZION 18.93 19.70 -0.77 13.18 24.35Data Source: Dow Jones Market Watch

*Quotes in U.S. dollars, except Bombardier is Canadian dollars.


INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

In an odd off beat way, the housing mar-ket in the Tucson region seems to be stuck in a wobbly, spinning squirrel cage. Th ere’s a lot of activity, up and down and up again, with breaks in the momentum.

Real estate reports have many bits of positive, negative and divergent factors spinning around. Since January, homes are selling faster. Average and median sales prices have ramped up. Slowly, inventory has dropped.

Th ose improvements have stabilized the wobbliest parts of the whirlwind mar-ket. For real estate agents and bankers, go-ing through the exercise has relieved some built-up stress.

Yet the supply-and-demand cycle re-mains caged in a zone of distress and con-cern. Although the recovery is gaining some traction, the gap continues to widen be-tween foreclosure sales and new potential foreclosures.

Th e gap’s “up” piece was expected with notices of trustee’s sales forecasted to spin at high speeds through most of 2012. Th e “down” part was not expected, that the sales of foreclosed homes would slow to be 32 percent down from last year.

“Th e most likely reason for the increase in foreclosure fi lings and the decrease in foreclosure sales is that fi nancial institu-tions are speeding up their foreclosure pro-cessing. At a rapid rate, that decreases the shadow inventory,” said housing analyst John Strobeck, owner of Bright Future Busi-ness Consultants.

Since there are so many investors and companies rehabbing and reselling fore-closures, “there is a bit of a frenzy” for these

homes, he added. “Resets on toxic mortgag-es are ending so there will only be a fi nite number of opportunities for these compa-nies to continue to exist before we see the foreclosure pipeline decrease from a fl ood to a trickle.”

In June, foreclosure notices totaled 946, bringing the year-to-date number to 5,367 (see chart). Th at is up 11 percent over the 4,847 notices issued for the fi rst six months of 2011, according to the Pima County Re-corder’s Offi ce.

A trustee’s notice is the fi rst step in the foreclosure process. It notifi es owners their property is in default and scheduled to be sold at public auction. Th e comparative monthly averages are now 895 notices for 2012 and 786 notices for 2011.

For the same six-month period, sales of foreclosed homes have plunged to 2,718, from 4,001, a 32 percent drop. Th e slow-down is signifi cant, as the monthly pace of sales is now 453 compared to 580 in 2011.

La Paloma Legends soldTh e Legends at La Paloma, a 312-unit

apartment complex at 3750 E. Via Palomita, has been sold for $35.15 million to a Cali-

Housing market stuck in spinning squirrel cage

THE PULSE: TUCSON REAL ESTATE

7/2/2012 6/25/2012

Median Price $145,000 $152,000Active Listings 4,001 4,096New Listings 314 360Pending Sales 328 405Homes Closed 149 297Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 3.75% 4.00%APR 3.75% 4.00%APR 4.95% 4.95% 3.75%

15 YEAR 3.13% 3.25%APR 3.13% 3.25% APR 4.22% 4.22% 3.13%

3/1 ARM 2.88% 3.125%APR 2.88% 3.125% APRThe above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000Information provided by Randy Hotchkiss, National Certifi ed Mortgage Consultant (CMC) Peoples Mortgage Company, P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000MB #0905432. Rates are subject to change without notice based upon market conditions.

7/9/2012

fornia-based investment group. Th e trans-action is the largest apartment sale in the region this year.

Th e resort-style property off Sunrise Drive in the Catalina Foothills was owned by an undisclosed investment fund man-aged by the national fi rm of Eaton Vance Investment Management. Built in 1995, the complex features a pool and spa, fi tness center, clubhouse and outdoor picnic area.

Th e buyer was NALS West LLC, an affi li-ate of Nevins Adams Lewbel Schell, Santa Barbara, Calif. CBRE represented the seller, led by Michael Sandahl of the Tucson offi ce and Tyler Anderson, Sean Cunningham, and Asher Gunter in Phoenix.

Cool off with CREW On Th ursday (July 19), a cool “breeze”

will blow through the region when Tucson CREW (Commercial Real Estate Women) hosts its annual summer social event. Any-one involved in the commercial real estate industry is invited to the “Summer Breeze VII Social” from 5-7 p.m. at Union Public House, 4340 N. Campbell Ave. in St. Philip’s Plaza.

Th e event provides an opportunity to learn about CREW and to network in a re-laxed atmosphere, according to Sally Bach, director of Tucson CREW. Appetizers and two drink coupons will be provided to any-one who makes a reservation. Th e dealine for reservations is Monday.

Tucson CREW, a nonprofi t organization of commercial real estate professionals, is affi liated with the national CREW Network. Th e group works to provide education, lead-ership development, civic service and net-working while promoting high standards of

Pima County Recorder’s Offi ce data

Notices of Trustees Sales Pima County Recorder Foreclosures

2007 2008 2009 2010 2011 2012January 346 699 882 863 975 705February 276 598 1,016 982 762 918March 305 661 1,154 1,089 948 904April 300 700 1,093 985 721 910May 396 720 991 890 748 984June 377 742 1,002 862 693 946July 419 721 1,063 1,111 666 August 503 814 1,130 1,067 917September 394 782 1,008 1,090 797October 483 921 948 1,019 816November 540 675 859 829 754 December 475 923 1,038 876 636 Total 4,814 8,956 12,184 11,663 9,433 5,367 Monthly avg. 401 746 1,015 972 786 895

ethics.Register online at www.tucsoncrew.org

or email [email protected].

Apartment auctionA small midtown apartment complex

has fallen into default and is scheduled to be auctioned in September. According to public records, Tucson-based Wincat LLC, owned by Joseph Esher, has an original principal balance of $568,000 on a 24-unit complex at 1632 N. Louis Lane, off East Pima Street between Alvernon Way and Co-lumbus Boulevard.

Th e trustee’s sale is being handled by Western Regional Foreclosures, Phoenix. Th e benefi ciary is BMO Harris Bank, which is now the parent company of M&I Marshall & Illsley Bank, 4380 N. Campbell Ave.

Th e auction is set for 11:30 a.m. Sept. 18 at the Pima County Courts Building, 110 W. Congress St.

Sales and leases• CAT Investment Properties LLC pur-

chased a 1,830 square-foot building at 3448 N. First Ave. for $175,000 from Virginia and William Salzman, who were represented by Bill Mordka, Harvey Mordka Realty. Th e buyer was represented by Richard Kleiner, Picor Commercial Real Estate Services.

• Matrix Service leased a 10,000 square-foot industrial building at 3740 E. 43rd Place from John and Vera Williams Trust, rep-resented by Brandon Rodgers, Picor Com-mercial Real Estate Services. Th e tenant was represented by Gordon Wagner, Coldwell Banker Commercial Group.

• Sonora Desert Off -Road Center Inc.leased 5,000 square feet at 8500 S. Old Nogales Highway from GRG Properties LLC, represented by Dave Gallaher, Tucson Industrial Realty LLC.

• Konica Minolta Business Solutions USA leased 4,792 square feet at 5151 E. Broadway from Kent Circle Investments, represented by David Volk and Bruce Sup-pes, CBRE. Th e tenant was represented by Rob Glaser, Picor Commercial Real Estate Services.

• Wax & Wicks Candle Co. leased 2,897 square feet at 6546 E. 22nd St. from Tierra Del Sol. Th e transaction was handled by Robert Nolan, Oxford Realty Advisors.

• Studio One Arizona Dance Company leased 2,367 square feet at 8045 S. Rita Road from Pajaro LLC, represented by David Hammack, Volk Company Commercial Real Estate.

Email news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.


I’m back from Milwaukee, Wis., the site of the summer conference of the Alliance of Area Business Publications, and where I came to realize Tucson screwed up.

Even though I’ve been the editor of Inside Tucson Business for nearly eight years, this is the fi rst time I attended our organization’s annual conference. But since I missed getting my invitation to go along on Tucson Regional Economic Opportunities’ May trip to San Diego, I fi gured it was time to get to know my editor brethren at other business journals across the country — and internationally, too, after having breakfast the fi rst morning with Elton Swarts, chairman of the Western Australian Business News in Perth.

As for Milwaukee, I was fascinated by what appeared to be their success in revitalizing downtown. Th e conference was held at their grand old hotel, the Pfi ster. Emphasis on the word “old” but, hey, at least they’ve got a downtown hotel that can hold a descent-sized conference. Tucson doesn’t.

From the hotel we could walk to the lakefront and its Discovery World museum, to a revitalized warehouse district called the Th ird Ward and to popular places along the Milwau-kee River’s riverwalk. Not too far away was the Harley-Davidson Museum and burgeoning Menomonee Valley area.

It probably helped that except for a few days of heat, the weather was nice most of the time I was there.

As I was thinking about it, I recalled that Tucson had a connection with Milwaukee when it comes to downtown revitalization. Greg Shelko had worked for the City of Milwaukee for 27 years and was assistant executive director of its Redevel-opment Authority before coming to Tucson on June 1, 2004, to be director of Rio Nuevo. He stayed for fi ve years until the state Legislature wrested it away from the city as of June 30, 2009.

In Milwaukee, Shelko had a reputation for being the “do-er.” After decision-makers made their calls, Shelko was the guy who made sure the work got done.

Th e fi rst time I met Shelko in 2004 we talked of the kind of political leadership that stokes downtown revitalization — and it can boil down to one or a few persons with vision. A lot of the early credit in Milwaukee goes to John Norquist, who was mayor from 1988 until 2004 and is now president and CEO for the Congress of the New Urbanism in Chicago. During his mayoral term he was called a “fi scally conservative socialist,” a term he didn’t reject.

No doubt Norquist’s enthusiasm for urban development shaped Shelko’s thinking of what could be.

I talked with Shelko this week and he says he’s “happily retired” from government life and would like to stay out of the news, though he still loves living in Tucson.

From what I saw in Milwaukee, its downtown is coming back — even if they did lose out last month in their fourth try to get up to $52 million in U.S. Department of Transportation’s Transportation Investment Generating Economic Recovery (TIGER) grant money to extend a two-mile streetcar route by another 1.6 miles.

Shelko was part of downtown Milwaukee’s success. Too bad he wasn’t allowed to succeed in Tucson.

Contact David Hatfi eld at dhatfi [email protected]

or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

A tale of 2 downtowns,one successful, one not

EDITORIAL

We can make things in Arizona, tooLast month, airplane manufacturer Airbus an-

nounced it would open a plant near Mobile, Ala., to build commercial airliners. It’s about 650 miles away from North Charleston, S.C., where Boeing recently built its own airliner manufacturing plant.

Touted in both instances was the fact that Alabama and South Carolina are right-to-work states that do not require employees to join a union to get a job — in other words, closed unionized shops are illegal in those states. Closed shops are illegal in Arizona, too. In fact, of the 23 right-to-work states, Arizona is one of just six where it’s part of the state’s constitution.

And it’s not just airplanes that are attracting manu-facturers. Th ey’re making Toyotas in Kentucky and Mississippi, Nissans and Volkswagens in Tennessee, Kias in Georgia, BMWs in South Carolina and Hondas, Hyundais and Mercedes-Benzes in Alabama.

Did any of these companies ever consider Arizona? In the secretive world of economic development and

site selection, we’ll never know for sure. What we do know, however, is that if Arizona leaders

tried to woo these companies, they didn’t succeed. Sure, Arizona has gained some unwanted political

notoriety, but we can’t blame the lack of manufacturers coming here entirely on boycotts. In the wake of passage of the anti-illegal immigration law SB 1070 in 2010, Alabama, South Carolina and Georgia, among others, have passed their own versions.

As the entire United States continues to struggle to recover from the economic recession, Arizona and Tucson in particular, are hampered by the fact that we really don’t make very many things here.

Of the 100 largest employers in the state, only eight are manufacturers, according to the 2012 annual survey done earlier this year by the Arizona Republic. Of those eight — Raytheon Missile Systems, Intel, Honeywell International, Boeing, W.L. Gore & Associates, Freescale

Semiconductor, Microchip Technology and Orbital Sciences — all have legacies in Arizona dating from 54 to 19 years ago. Th ere’s not a newcomer in the bunch.

Yes, this would be an appropriate time to ask economic developers: What have you done for us lately?

To be fair, Intel has begun a major $5 billion expan-sion of its operations in Chandler, and by this time next year it should employ close to 14,000 people, making it the largest manufacturing employer in the state. Currently, that ranking goes to Raytheon in Tucson with its 12,000 employees. And we all know how Tucson dropped the ball when it came time to be at the plate when Reytheon needed to build a new manufacturing plant two years ago. Alabama got it.

Th at announcement took place at a little event called the Farnborough International Airshow, a biennial event — trading off with the Paris Air Show in odd-numbered years — which took place this week in England.

Representatives of the Arizona Commerce Authority are among the delegates who were scheduled to be there.

Beyond that, offi cials from smaller cities were there as was noted by a columnist in the Rock Hill, S.C., newspa-per, Th e Herald, who wrote the air show “is about relationships and marketing, and you can assume the men and women from Alabama will come with a game plan as masterful as anything Bear Bryant designed for his Tide teams and possibly the trickery we’ve come to expect from Cam Newton and the Panthers. Newton won a national championship at Auburn, and those going to Farnborough want to win just as badly.”

While the headlines from this week’s airshow had more to do with orders of airliners, the real challenge lies in establishing those relationships that some day should land a signifi cant manufacturer here. Th at will be the real mark as to whether this state is competitive in economic development.

We can make things in Arizona, too.


OPINIONWAKE UP, TUCSON

Message to businesses: A little courage goes a long way “Courage is being scared to death — and

saddling up anyway,” said actor John Wayne. Th at’s the situation facing business

leaders in Pima County right now. Positive changes have brought in the

new leadership of Mike Varney and Bill Holmes, as CEO-president and chief operating offi cer, respectively, of the Tucson Metro Chamber, and Brent DeRaad as president and CEO at Visit Tucson — you may still know it as the Metropolitan Tucson Concention and Visitors Bureau.

Now imagine what would happen to this region if we could execute similar moves in the government side of the equation. In our column two weeks ago we noted the positive movement coming from Tucson Mayor Jonathan Rothschild and City Manager Richard Miranda.

Now, to truly change this region for the better for small business owners, the Raytheon Missile Systems, the hotels and the biotechs, the Pima County Board of Supervisors must fl ip 3-2 away from the machine that has pistol-whipped engines that could drive the economy, all the while claiming they are business-friendly as they take their Hornblower cocktail cruises of San Diego Bay with Tucson Regional Economic Opportunities (TREO).

We keep hearing from business leaders

their one excuse for not getting involved is f-e-a-r. Develop-ers, especially, have lived for two decades under a veritable dictator-ship built on the message from county government that says “step out of line and your project will linger in a perpetual holding pattern.” Th e tactics can range from a native plant ordinance for the one-eyed pineapple cactus or a requirement to buy 1,000 acres of open space a dozen miles away from your project to a

non-written assessment handed from underlings that reads “we’re not sure we can provide wastewater hook-up to that project.”

If you don’t believe us, just ask Marana. What’s a developer to do? Th ree things:

Hire the right attorney, consultants and

retired county employees who can magi-cally get your project moving; donate, donate, donate to the campaign of any of the three majority board members; and never ever get out of line.

When does this dynamic end? Between Pima County and the City of Tucson there are 12 elected offi cials spending almost $3 billion dollars of taxpayer money annually. Most of them you wouldn’t consider hiring as an employee, let alone run two govern-mental entities where nearly 1 million people live. Th ese are the same elected leaders who’ve let roads rot, can’t fi nd the means to open a swimming pool and yet tax the heck out of you.

Do you think they’re willingly going to end their style of governing through fear and intimidation?

Th e negative eff ects of their governance are manifest all around. Our region’s economy remains mired in the doldrums. We are a region rich with minerals run by government offi cials who fi ght to keep mines out. We are dependent on the government for jobs but hate the idea of letting the government bring F-35s here. We don’t want sprawl yet government makes the process of infi ll diffi cult. And all the while we watch the University of Arizona’s end product leave for opportunities elsewhere.

Th is isn’t new, and to keep this going the powers that be in this region are counting on you to:

1. Be busy with your business and your life2. Be cheap3. Be scared (“do you know what they

would do if they saw us together?”)4. Be complacent (“we can’t change this

place, it’s just the way it is.”) If the business community continues to

operate out of fear, the economy of the Tucson region will remain stagnated. Th at’s bad for you, your employees, and all citizens, including even the electeds who helped create the problem.

Alan Moore author of the V for Vendetta comic book series about a dystopian future government that was turned into a 2006 movie, includes a speech from a masked revolutionary working to bring down the oppressive government in which he says, “How did this happen? Who’s to blame? Well, certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you’re looking for the guilty, you need only look into a mirror.”

Contact Chris DeSimone and Joe Higgins at

[email protected]. They host “Wake Up

Tucson,” at 6 a.m. weekdays ib The Voice KVOI

1030-AM. Their blog is at www.TucsonChoices.com.

GUEST OPINION

Interstate 11 is Arizona’s highway to opportunity Amid the news of two signifi cant

Supreme Court decisions at the end of June, Congress ended a three year ordeal and passed a long-awaited extension of highway and transit funding. After nine prior extensions of the 2009 transporta-tion bill, a fi nal, one-week extension was fi led to provide suffi cient time to obtain President Obama’s signature. Th e bill, which has been touted as providing “un-precedented reforms,” is valid for only two years as opposed to the optimal fi ve years necessary for eff ective long-term planning. After all the political wrangling, the bill fi nally awaits the president’s signature.

A signifi cant accomplishment of the $100 billion federal transportation bill is its inclusion of language designating the Inter-state 11 corridor and making it eligible for interstate highway funds. In Arizona, the corridor would create an interstate freeway directly connecting Phoenix and Las Vegas.

Gov. Jan Brewer, with support from Arizona’s congressional delegation and numerous public and private partners, has been actively pursuing the designation of I-11 since her arrival in offi ce. In January’s State of the State address, the governor highlighted the I-11 project and its impor-

tance in the west-ern United States. Th e project serves as a “cornerstone in her jobs and economic devel-opment agenda” — playing a key role in establishing Arizona as a com-petitive player in the global market.

Phoenix and Las Vegas remain the larg-est cities in the United States not linked by an interstate highway system. When the Federal Highway Transportation act was enacted in 1956, the population corridor from Tucson through Phoenix, Las Vegas and on to Reno had a combined population of a mere 700,000. Today that number has grown to 8 million and continues to increase as people from all over the world discover the greatness of eternal sunshine and these booming metropolises.

As population in the western United States grows, trade between the U.S., Mexico, and Canada continues to thrive. Total trade among the three countries reached more than $919 billion in 2010 and is projected to increase substantially

as Mexico continues port expansion. We have popular tourist destina-

tions, with growing populations and ideal locations for bustling lines of in-ternational trade. What we don’t have is a suffi cient highway system directly connecting them to make the fl ow of commerce effi cient and competitive.

Th e I-11 link connecting Phoenix to Las Vegas, and potentially expanding access north to Canada and south to Mexico, puts Arizona at the center of new opportuni-ties for commerce, tourism and trade.

I-11 would create more effi cient trade connections among fi ve of the largest metro areas in the western U.S.: Seattle, Portland, San Francisco, Las Vegas and Phoenix. It would connect major trade hubs, existing and future domestic and international deepwater ports, and intersecting transcontinen-tal roadways and railroad corridors.

On a micro level, I-11 would allevi-ate congestion by providing a route for truck traffi c around the Phoenix metro area. Th is is a key benefi t as expansion of the Mariposa Land Port of Entry in Nogales is estimated to triple the number of trucks driving through parts of Ari-

zona and Nevada, further creating traffi c delays and running roadways ragged.

And most notably, according to an estimate of the 2040 travel demand, I-11 would usher 5,000-24,000 passenger and commercial vehicles through Arizona each day. Th at’s 5,000-24,000 vehicles contain-ing potential patrons of local gas stations, hotels, restaurants, and tourist sites.

Th e ease and connectivity of Interstate 11 will help solidify Arizona as the destina-tion for business. It will create opportunities for manufacturing, distribution, real estate development, transportation, construction, retail and more. It will create jobs, encour-age global investment and increase long-term economic stability.

Th e development process of I-11 is bound to be long. Engineering and environmental studies will commence this summer, with construction beginning no sooner than 2017.

For now, we await the president’s signature and celebrate the possibility that lies ahead.

Contact Jenna Minegar, manager of

marketing and communications at the Ari-

zona Chamber of Commerce and Industry at

[email protected].

JENNA MINEGAR

JOE HIGGINS

CHRIS DeSIMONE


Phone: (520) 295-4201Fax: (520) 295-40713280 E. Hemisphere Loop, #180Tucson, AZ 85706-5027 Internet: www.azbiz.com

STAFFPUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

STAFF WRITERROGER [email protected]

STAFF WRITERPATRICK [email protected]

STAFF RESEARCHERCELINDA [email protected]

WEB PRODUCERDAN [email protected]

LIST COORDINATORJEANNE [email protected]

ART DIRECTORANDREW [email protected]

ADVERTISING DIRECTORJILL A’[email protected]

ACCOUNT EXECUTIVE LAURA [email protected]

ACCOUNT EXECUTIVEALAN [email protected]

ACCOUNT EXECUTIVEDAVID WHITE [email protected]

INSIDE SALES MANAGERMONICA [email protected]

CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

REPORTER INTERNKAITY [email protected]

InsideTucsonBusiness.com

• Letters to the editor — Opinions on business-related issues or coverage of is-sues by Inside Tucson Business are encour-aged and will be published. Submit letters to the editor via email at [email protected]. Letters also may be mailed to Letters to the editor, Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087. Let-ters must include the writer’s name and telephone number. Inside Tucson Business reserves the right to edit and may not print all letters that are received.

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OPINIONGUEST OPINION

What ‘Most Wired’ at TMC means to healthcare and to Tucson With health care undergoing a dramatic

transformation as leaders seek ways to increase quality and reduce costs, there’s a case to be made that the hot information technology (IT) jobs are no longer on the western coast, but down the street at your local hospital and physicians group.

Th e federal government has been pushing reforms for the industry, that for too long relied too heavily on manual data entry and paper records.

At the same time and independent of those federal incentives, health leaders have begun to see the ways technology can be leveraged to decrease complexities and increase quality and patient safety.

If you’re an IT worker, that’s a recipe for opportunity, with increasingly stiff competition to recruit and retain qualifi ed staff members.

Tucson Medical Center (TMC) is in a place to know about the challenges – dou-bling our IT staff in recent years as we broke new ground in technological advancements.

In the summer of 2010, after years of preparation, TMC left paper records behind and pioneered the challenging move to electronic medical records.

By summer 2011, TMC was estimated to be in the top 1 percent of more than 5,000

hospitals nation-wide for its use of technology receiving the highest award, a Stage 7 score, as measured by HIMSS Analytics, a subsididary of Healthcare Information and Management

Systems Society. Th is week, TMC was the only Southern

Arizona hospital to make the “Most Wired” list, which recognizes those hospitals that comprehensively use technologies to improve care for patients, to streamline data collection and to boost effi ciencies.

Finding the right people to staff those endeavors hasn’t been easy.

Since healthcare IT is a burgeoning, but new, market, there is a natural shortage of employees. And with large systems and consultants snapping up talented profes-sionals by dangling larger salaries, Tucson recruiters are bumping into the classic rule of supply and demand.

Th ose of us who love Tucson know its charm, but it is also a bit of a tough market to recruit into. It’s not the state capitol. It’s

of a moderate size. Since healthcare IT remains a somewhat specialized fi eld, that means there aren’t as many opportunities for fall-back jobs within the same town.

Th ese short-term challenges to fi ll the resource gap will give way to long-term opportunities though, because health care technology is so vital in enabling the industry to make the changes it must.

Th is hospital has been making major improvements in technology for years - but not just to make a list or secure a particular ranking. It’s helping us deliver safer care more effi ciently.

Th e electronic system, for example, is helping us ward off medication errors. By scanning a bar code on a patient’s wrist-band, medications can be linked directly with a specifi c patient, providing both staff and patients with the assurance that orders are being carried out with accuracy.

It’s working. In 2011, TMC delivered more than 2.5 million doses of medication. In that time, the system issued 12,500 alerts at the bedside when a wrong medication was attempting to be administered.

Th at represents only 0.5 percent of all doses delivered, and there are nuanced diff erences that can trigger an alert - even to the point that it makes distinctions between a caplet and a tablet. Even so,

without the technology, caregivers wouldn’t necessarily have had that opportunity to double-check their actions.

Th at’s just one example. From fi lmless medical images to electronic physician orders, technology allows us a greater opportunity to avoid transcription errors, lost records or delays.

It also allows us to collect more data on quality measures. In a way that we have never been able to do before, technology is helping us have a clear gauge of how well we’re performing and where we need to improve.

Reaching a new threshold or making a list doesn’t mean our work is done.

We’ve come pretty far on our journey. We have a strong foundation in place. But we will never be done fi nding ways to enhance effi ciency and refi ne the quality of care we provide.

In the end, what that means for health care workers is they have a chance to help make health care goals a reality.

And their work matters. It helps other people go home to their loved ones and live healthier lives.

Frank Marini is chief information

offi cer at Tucson Medical Center.

FRANK MARINI


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