inside tucson business 01/13/12

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Low prices drive up home sales Housing inventory drops under 5,000 Page 19 ACT’s Kuliesh fights for jobs CEO’s persuasion is a booming voice for subcontractors Page 8 Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JANUARY 13, 2012 • VOL. 21, NO. 32 • $1 GOV. JAN BREWER’S STATE OF THE STATE PAGES 4–6 Special reports outline what’s brewing in the lesgislature for 2012 Tucson ranks as fifth-worst housing market for 2011 Inside Tucson Business Although Tucson-area home prices dropped four times more than the national average in 2011, forecasters for a national housing data firm see hopeful signs of sta- bilization this year. But for now, Tucson ranks as the nation’s fifth-worst housing market. From 2010 to 2011, home prices nationally declined an average 2.1 percent. In Tucson, a much steeper 9.4 percent decrease occurred, ac- cording to the 2011 Clear Capital Home Data Index Market Report. Only four cities recorded bigger year-over-year losses. e weakest market in 2011 was Atlanta with an 18.3 percent de- cline. Next was Seattle with a 15.1 percent loss, followed by Birming- ham, Ala., down 11.1 percent. Detroit, often cited as a poster child when it comes to economic woes, was the fourth-worst market with home prices down 10.8 per- cent last year. At the other end of the spec- trum, Dayton, Ohio, topped the nation’s best-performing markets with an 11.5 percent increase in home values. No. 2 was Orlando, Fla., which was up 6.7 percent. Nationally, home prices in 2012 are expected to perform much like they were during the last half of 2011, said Alex Villacorta, director of research and analytics for Clear Capital, which is based in Truckee, Calif. He said the minimal declines in the early part of the year should turn to meager gains by the end of the year. Half of the nation’s 50 major metro markets are expected to post gains, but that does not in- clude Tucson. Clear Capital forecasts home values in the Tucson region will drop another 3.6 percent over the course of 2012 but the “extremes in price declines” should begin to stabilize. PAGE 3 SCORE! SCORE! College football All-Star game racks up points for Tucson J.D. Fitzgerald photo

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Page 1: Inside Tucson Business 01/13/12

Low prices drive up home salesHousing inventory drops under 5,000

Page 19

ACT’s Kuliesh fi ghts for jobsCEO’s persuasion is a booming voice for subcontractors

Page 8

Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • JANUARY 13, 2012 • VOL. 21, NO. 32 • $1

GOV. JAN BREWER’S STATE OF THE STATE

PAGES 4–6

Special reports outline what’s brewing in the lesgislature for 2012

Tucson ranks as fi fth-worst housing market for 2011Inside Tucson Business

Although Tucson-area home prices dropped four times more than the national average in 2011, forecasters for a national housing data fi rm see hopeful signs of sta-bilization this year.

But for now, Tucson ranks as the nation’s fi fth-worst housing market.

From 2010 to 2011, home prices nationally declined an average 2.1 percent. In Tucson, a much steeper

9.4 percent decrease occurred, ac-cording to the 2011 Clear Capital Home Data Index Market Report.

Only four cities recorded bigger year-over-year losses.

Th e weakest market in 2011 was Atlanta with an 18.3 percent de-cline. Next was Seattle with a 15.1 percent loss, followed by Birming-ham, Ala., down 11.1 percent.

Detroit, often cited as a poster child when it comes to economic woes, was the fourth-worst market with home prices down 10.8 per-

cent last year.At the other end of the spec-

trum, Dayton, Ohio, topped the nation’s best-performing markets with an 11.5 percent increase in home values. No. 2 was Orlando, Fla., which was up 6.7 percent.

Nationally, home prices in 2012 are expected to perform much like they were during the last half of 2011, said Alex Villacorta, director of research and analytics for Clear Capital, which is based in Truckee, Calif. He said the minimal declines

in the early part of the year should turn to meager gains by the end of the year.

Half of the nation’s 50 major metro markets are expected to post gains, but that does not in-clude Tucson.

Clear Capital forecasts home values in the Tucson region will drop another 3.6 percent over the course of 2012 but the “extremes in price declines” should begin to stabilize.

PAGE 3

SCORE!SCORE!College football All-Star game racks up points for Tucson

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Page 2: Inside Tucson Business 01/13/12

2 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

Page 3: Inside Tucson Business 01/13/12

JANUARY 13, 2012 3InsideTucsonBusiness.com

CONTACT US

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

Inside Tucson Business (ISSN: 1069-5184) is published weekly, 53 times a year, every Monday, for $1 per copy, $50 one year, $85 two years in Pima County; $6 per copy, $52.50 one year, $87.50 two years outside Pima County, by Territorial Newspapers, located at 3280 E. Hemisphere Loop, Suite 180, Tucson, Arizona 85706-5027. (Mailing address: P.O. Box 27087, Tucson, Arizona 85726-7087, telephone: (520) 294-1200.) ©2009 Territorial Newspapers Reproduction or use, without written permission of publisher or editor, for editorial or graphic content prohibited. POSTMASTER: Send address changes to: Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087.

Follow us: Twitter.com/azbiz | Twitter.com/BookOfLists | Facebook.com/InsideTucsonBusinessPublic Notices 6Profile 8,9Lists 7 Inside Media 9People in Action 10Meals and Entertainment 14Arts and Culture 15

Briefs 17Finance 18Real Estate &Construction 19Calendar 17Biz Buzz 20Editorial 20Classifieds 23

EDITION INDEX

Padres come to the rescue of college All-Star game

By Patrick McNamaraInside Tucson Business

Long before the opening kickoff , there was a time when the Casino Del Sol Col-lege All-Star Game looked destined to fail.

“Th e game was done,” said Mike Feder, vice president and general manager of the Tucson Padres Minor League baseball team.

Feder and the Padres decided to step in to act as organizers of the game, where college seniors from football teams across the country compete in a contest designed to show off their skills to NFL scouts and fans.

Th e inaugural game — at least under its current incarnation — is scheduled for 6 p.m. Monday (Jan. 16) at Kino Stadium, 2500 E. Ajo Way.

“I couldn’t see another black eye for this

community in sports,” Feder said. In the past few years, Tucson has started

to look like a professional sports graveyard with the loss of three Major League Base-ball teams that used to come for Spring Training, the Arizona Diamondbacks’ Tri-ple-A team moved to Reno, Nev., the LPGA no longer makes a stop here and Arena Football never materialized.

“At some point you just say, ‘I’m tired of it,’” Feder said.

Feder, and sponsors Casino Del Sol, have since snared additional corporate sponsors in hopes of making the game a success. Th e original announcement said the Pascua Yaqui Tribe, owners of Casino Del Sol, had signed a three-year sponsor-ship agreement.

Companies that have joined as spon-sors include Pizza Hut and Miller beer, along with Tucson-based businesses in-

cluding the Jim Click Automotive Group and Crest Insurance.

“When Mike (Feder) approached us, it was a no-brainer,” said Cody Ritchie, presi-dent of Crest Insurance.

Ritchie said he’s known Feder for years, since working with him for the old Tucson Toros minor league baseball club in the 1980s.

Like Feder and other supporters of the

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

CONTINUES ON PAGE 14

BIZ FACTS

Casino Del Sol College All-Star Gamewww.casinodelsolallstargame.com

Casino Del Sol College All-Star Game 6 p.m. Monday (Jan. 16)Kino Stadium2500 E. Ajo Way Tickets: $8 and up at www2.ticketreturn.com/prod2/Buy.asp?EventID=78480 or call (520) 434-1338

Box offi ces: Casino Del Sol, 5655 W. Valencia Road, and Kino Stadium, 2500 E. Ajo Way

TV: Fox Sports Arizona, Fox College Sports Pacifi c, Fox Sports Southwest Plus, Fox Sports Houston Plus and SportSouth

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Players in the Casino Del Sol College All-Star Game huddle around a coach.

Commerce Authority CEOannounces resignation

In what came as a surprise Wednesday, Don Cardon, CEO of the state’s new eco-nomic development entitity, the Arizona Commerce Authority (ACA), said he want-ed to transition out of the job and return to his personal enterprises of creating entre-preneurships, which he called his “greatest strengths” and “passion.”

In his statement Cardon said he antici-pated the transition would take about six months.

Cardon, who has a background in real es-tate, was Arizona Department of Commerce director before being named CEO of ACA, a public-private partnership that replaced the state Commerce Department last year.

Although the ACA is chaired by Gov. Jan Brewer it has a private board of directors. Its mission is to economic development.

Some eyebrows were raised over Car-don’s ACA salary of $300,000 a year, plus $12,000 for a car allowance and a $50,000 signing bonus. As director of the Commerce Department he made $183,000.

Tucson gets centennialcelebration afterall

Tucson will get a chance to host an Ari-zona Centennial Weekend Celebration af-terall by capitalizing on February’s Second Saturdays event downtown.

Th e Arizona Centennial Commission announced a partnership had been formed among the University of Arizona, Jim Click, Downtown Tucson Partnership, the City of Tucson and Second Saturday to hold nu-merous events Feb. 10-12.

Due to a lack of funding and confl icts with other scheduled events, organizers said last month admitted there wouldn’t be an event in Tucson coinciding with Arizona Centennial celebrations in other parts of the state.

“Now Tucson and Phoenix will celebrate Arizona’s Centennial on the same week-end,” said Fletcher McCusker, chairman of Second Saturday, which falls on the week-end before Feb. 14, Arizona’s 100th State-hood Day.

Festivities planned include free street concerts on Scott and Fifth avenues, free concerts at the Fox Th eatre, fi reworks, street musicians, food vendors, rides and histori-cal reenactments.

Page 4: Inside Tucson Business 01/13/12

4 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

NEWS

Southern Arizona business leaders team up to infl uence legislatorsBy Hank StephensonInside Tucson Business

As lawmakers from across the state swarmed back to the Capitol to begin the legislative session this week, Southern Arizona business leaders are hoping some pre-session bond-building eff orts will pay off , and their voices will be heard in Phoe-nix this year.

Southern Arizona business organiza-tions banded together after the last session ended in April 2011 to present a unifi ed business front, get the attention of law-makers and open a dialogue about issues aff ecting the region.

Th ey call the group the Southern Arizo-na Business Caucus, and, so far, they feel the eff ort has been working.

“It’s a whole new approach,” said Laura Shaw, senior vice president of market-ing and communications for Tucson Re-gional Economic Opportunities (TREO). “It’s a much more unifi ed, collaborative approach we’re trying to take after the last session so that there’s a common agenda with all the diff erent business groups.”

One of the major themes of the meet-ings has been support for education — be it K-12, community college, the Joint Tech-nological Education District, or the Uni-versity of Arizona, Shaw said.

Business leaders want to know they’ll be able to fi nd an educated workforce, and that their employees’ children will be able to get a good education, Shaw said, adding that the number one factor for a business looking for a site to expand or relocate to is education.

“(Legislators) have been very willing to meet with us and try to understand the issues from our point of view,” Shaw said. “You must have the public sector at the table when you’re talking about business and economic development.”

In previous years, business groups took a more reactionary stance, according to Lea Márquez-Peterson, president of the Tucson Hispanic Chamber of Commerce.

After a bill had been dropped, business leaders would go up to the Legislature to give their two cents for or against the mea-sure and leave it at that, she said.

With the new Southern Arizona Busi-

ness Caucus, they’re trying to get in front of issues and work with their legislators beforehand to craft business-friendly leg-islation and have a real voice at the capi-tol.

Groups in the caucus include TREO, Southern Arizona Leadership Conference, Southern Arizona Home Builders Associa-tion, Metropolitan Pima Alliance, Tucson Metro Chamber and the Tucson Hispanic Chamber of Commerce. Each group brings a diff erent focus to the caucus, and one point the Tucson Hispanic Chamber has been trying to make is to layoff the immi-gration bills, stop embarrassing the state, and focus on the economy, said Márquez-Peterson.

“Our chamber was opposed to the im-migration bills that (former) Senator (Rus-sell) Pearce was pushing, and we asked him, like many of the business organiza-tions did, to focus on jobs,” she said. “And obviously that message has been received

because he has been recalled.”But it’s not just business leaders getting

something out of the meetings. South-ern Arizona legislators from both parties praised the caucus, saying it brought them together and helped them learn about the needs of their business community.

“It’s an educational process for us elect-ed lawmakers,” said state Rep. Vic Wil-liams, R-Marana, a small business owner who attended the meetings.

Rep. Daniel Patterson, D-Tucson, also attended the meetings and said, “To get things done for Southern Arizona we really have to have a bipartisan block, and we re-ally haven’t had that (in the past).”

At least the caucus as brought both Democrat and Republican legislators to-gether into the same room.

“It’s a good eff ort towards working to-gether on the same goals, and in the best interest of all of our constituents,” Patter-son said.

CorrectionDue to an editing error, a quote in the Dec. 30 profi le of Tucson Racquet and Fitness Club and its hosting two United States Tennis Association tournaments wasn’t attributed. It was made by Matt Gleason, tennis director at the club.

Rodeo photographer Louise Serpa died Jan. 5. Mary Levy Peachin profi led Serpa in her monthly column Remembering Tucson in the Jan. 6 issue. Although Peachin noted that Serpa was suffering from cancer, we did not know she had died before the print issue went to press.

Clarifi cation

Gov. Jan Brewer gave her State of the State address Tuesday (Jan 10) at La Paloma.

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Furniture retailer toclose store this month

After 32 years in business, furniture re-tailer California Design Center/Studio C Interiors this week announced it will close at the end January.

In an email to customers, founder and CEO Nancy Goodwin Farina said she just found out Jan. 5 that she’ll have to be out of her store at 11085 N. Oracle Road, Oro Valley, in Steampump Village, at the end of the month so she is discounting everything in the showroom, by 60 percent and more to get it out quickly.

Th e store sells new furniture, accesso-ries, bedding and area rugs.

An original California Design Center was located at 3700 E. Fort Lowell Road until March 2008 when that location was closed and combined with Studio C Interi-ors in Oro Valley.

Th is latest closure is a result of pressure from a lender.

Raytheon lands $213Mcontract with Navy

Raytheon Missile Systems has been awarded a $213 million contract from the U.S. Navy to produce an upgraded version of the Seasparrow missile.

Th e work for the project, which will be done by Raytheon in Tucson, is for the Evolved Seasparrow Missile and will include production through the govern-ment’s fi scal year 2014. Th e contract In-cludes an option for $33 million in addi-tional work.

In a second contract that is part of the deal, Raytheon will work with Mitsubishi Electric Corp. in Japan on building the mis-siles for the Japanese Ministry of Defense.

Th e Seasparrow is a surface-to-air and surface-to-surface missile used to protect ships. It is a variant of a Navy missile used aboard its fi ghter aircraft.

Th e missile has been in use since 1976, and the upgraded version originally was deployed in late 2002, according to the Navy

Raytheon, Israel fi rmto develop missile

Raytheon Missile Systems in Tucson has received a $30.2 million contract from Rafael Advanced Defense Systems to con-tinue developing the Stunner interceptor missile.

Th e Stunner, developed by Rafael, based in Haifa, Israel, is a multi-mission missile used in various defense strategies as part of a project named the David’s Sling Weapon System.

Raytheon and Rafael signed an agree-ment to cooperate on the weapon system in 2009, and the fi rst tests of the Stunner missile are expected to be conducted this year.

Page 5: Inside Tucson Business 01/13/12

JANUARY 13, 2012 5InsideTucsonBusiness.com

LEGISLATIVE COVERAGE CONTINUES ON NEXT PAGE

To spend or save? What to do with the state budget surplusBy Hank StephensonInside Tucson Business

After fi ve years of budgets that looked like they were drafted in blood, Arizona is back in the black.

Legislators and Gov. Jan Brewer ex-pect to end fi scal year 2012 with a budget surplus — or more money than they im-mediately need to balance their budget. And after several rounds of budget cuts to nearly every department, level and func-tion of state government, there are a lot of needs and wants seeking to be backfi lled.

Th e projected surplus on June 30, the end of the fi scal year, ranges from $416 million to as much as $650 million.

Th e Joint Legislative Budget Commit-tee, the Legislature’s budgeting arm, at-tributes the extra cash to a better-than-expected economy and the temporary one-cent sales tax increase approved by voters in May 2010.

But, as chipper as projections may be for this year and next, the state isn’t out of the woods fi nancially yet. Th e temporary sales tax will expire in May 2013, costing the state nearly $1 billion per year in rev-enue, and Arizona has accrued roughly $3 billion in debt since the crisis began.

With that in mind, Sen. Frank Anten-ori, R-Vail, wants to use half the money to pay down some of the state’s debt and store the other half in a rainy day fund for future tough times.

“I wouldn’t call it a surplus, I would call it a positive cash fl ow,” Antenori said. “I don’t think we have a surplus until we pay off our bills, that’s the way I look at it.”

But even Antenori, a staunch fi scal conservative, has a program or two he would like to backfi ll. He said the Joint Technological Education District funding was cut too far due to faulty information about some of the four-year programs, and he would like to see some of the workforce training and development pro-grams reinstated.

Brewer has said she would look to use some of the money to keep from shifting the responsibility of housing prisoners to the counties, and has called for some of the surplus to be put toward $7 million in proposed tourism marketing.

Democratic lawmakers say they would like to see money spent on backfi lling ed-ucation and health care needs that were cut in recent years.

“We have a surplus, but good luck if you’re a hospital in Cochise County or

a poor, sick child anywhere in the state,” said State Rep. Matt Heinz, D-Tucson, who serves on the appropriations com-mittee. “It’s quite a hollow victory.”

Rep. Chad Campbell, D-Phoenix, House minority leader, would like to use some of the surplus to cover one-time ed-ucation costs, such as construction proj-ects for schools in need.

“First of all anytime we’re talking about spending any money, it is not an ongoing expenditure,” Campbell said. “Anything we’re looking at is a one-time expenditure, most notably any type of in-vestment in school facility repair, upkeep, maintenance, that is a one-time expense and investing in that infrastructure would create jobs and help our kids get a better education.”

NEWS

Rep Terri Proud, R-Marana, who serves on the education committee, would like to put the money into a rainy day fund, but also use some to bring back state-funded all-day kindergarten. Proud said all-day kindergarten is key to later student suc-cess, and without it, the state will see a domino eff ect of failures in the education system.

Proud would vote for a measure to re-instate the program, she said, but isn’t go-ing to draft a bill asking for the Legislature to fund it herself.

“Every legislator has their own little special issues,” she said. “You’re going to have 60 people, all wanting a piece of the pie. Th en it’s all going to be gone and we’ll be in the same mess that we were a year ago.”

Attendees look on as Gov. Jan Brewer spoke of her administration’s accomplishments and vision for the future

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This Week’s Good NewsNot from Phoenix leaders

Southern Arizona has a reason to be opti-mistic along with state lawmakers from rural parts of Arizona that close-to-home issues might fi nd more sympathetic ears in the Legis-lature this session. Th at’s because new Senate President Steve Pierce is from Prescott and Andy Tobin, who took over as Speaker of the House at the end of last year’s session, is from Paulden.

It remains to be seen how much impact their leadership will have. After all Maricopa County legislators can still run the show.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Beaches of Albuquerque? Albuquerque may be further along than

Tucson in revitalizing its downtown and New Mexico did a good job stealing away the movie industry from Arizona by paying incentives for location fi lming, but they’ve got their issues over there, too.

For starters there are plenty who argue the return on investment for Albuquerque’s down-town revitalization just isn’t there and the city should stop spending money. And tourism is down nearly 10 percent over the last three years. Despite the highly publicized boycott, Arizona’s tourism spending was down less than 5 percent over the same three years.

And talk about perception problems. When asked about New Mexico, focus groups in Chi-cago, Los Angeles and Houston said they had heard nice things about the state’s beaches and wondered if they needed passports to go there. Another common response was that it’s “close to Arizona.”

An election mockery? When it comes to presidential aspirations,

no city is a hotter incubator than Tucson if you look at the list of candidates whose names will appear on Arizona’s Feb. 28 Republican presi-dent preference primary ballot. Seven of the 23 candidates list Tucson addresses and one, a guy from St. Petersburg, Fla., lists Tucson Week-ly senior reporter Jim Nintzel as the contact for his Arizona campaign.

Clearly this has to do with the Weekly’s Proj-ect White House, which was intended to show just how little it takes to qualify for Arizona’s ballot.

In any event, you’ve got to wonder just who is making a mockery of what. So it’s easy to get on the Arizona ballot and some people are wasting time and eff ort to prove the point. On the other hand, what diff erence will an Arizona primary at the end of February make?

Page 6: Inside Tucson Business 01/13/12

6 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

Brewer wants less taxes, regulations — and the state Capitol buildings backBy Hank Stephenson and Patrick McNamaraInside Tucson Business

Saying Arizona “has been saved” from the brink of financial collapse, Gov. Jan Brewer wants the Legislature to continue lowering taxes and easing regulations to rebuild the state’s economy.

But before the rebuilding can begin, Brewer said, the State Capitol buildings need to be repurchased.

“To make all of our capitol truly ours once again, I’m asking that (the Legisla-ture) send me a bill by Statehood Day that allows me to buy back the Capitol Com-plex,” she said in her State of the State address. “Together, we can celebrate the burning of that mortgage.”

It was one of the few definite policy points Brewer made in her 35-minute speech Monday before lawmakers and again Tuesday in largely the same speech in Tucson at La Paloma.

Democrats on Monday were quick to react to Brewer’s speech.

“Brewer wants to celebrate the burn-ing of the mortgage on our state buildings that she signed. Too bad she included early payment penalties,” tweeted Sen-ate Democratic leader David Schapira, from Tempe.

The governor advocated mortgaging off the Capitol buildings during the tough financial climate of the past few years.

Brewer also laid claim to righting the vessel that is Arizona’s economy and bu-reaucracy.

“I took the helm of a ship I cher-ished, but it was a ship that was sinking, weighed down by over-spending and ex-panding bureaucracy — and quite sim-ply — poor navigation,” Brewer said in both the Tucson and Phoenix speeches.

The governor later said that legislative accomplishments like a balanced budget had saved the state.

“But, there’s more,” Brewer contin-ued. “Our State Government is smaller. Our State Government is more efficient. Our State Government is focused on the future.”

Not surprisingly, state Democrats were quick to draw contrasts.

In a news conference minutes after Monday’s speech, Democrats said that if the state has been saved, it has not been done through the great leadership and responsible budgeting that Brewer claims. Rather, they said it was through a turnaround in the national economy and on the back of the state’s students, patients and working poor.

“We just heard Governor Brewer claim she and the tea party-controlled House and Senate should get credit for the im-proving economy and the resulting sur-plus that we have,” said Schapira. “The absurdity of this statement astounds me. Apparently she thinks gutting public education and kicking poor people off of health care are an economic stimulus.”

Brewer said the state created 46,000 jobs last year alone and cited a study that ranked Arizona seventh in the nation in job growth — and she asked lawmakers to continue lowering taxes, simplifying the tax code and easing regulations in order to attract and keep businesses and jobs in the state.

“Together, just like last year, let’s con-tinue to lower taxes, cut regulation and tell all employers that Arizona means business. Arizona is open for business,” Brewer said. “We need to make Arizona the free-market beacon to the nation and the world.”

Though she didn’t go into numbers or specific areas where taxes could be cut, she released a broad policy pro-posal outlining some of the reforms she wants from the legislature this session, in changes to tax codes, regulations, educa-tion and state government.

“They’re going to see the personal incomes of Arizonans increase,” Brewer said of what her tax proposals would do for the state. “They’re going to see us re-capture our position as a top job creator by getting back to the fundamentals that built Arizona in the first place. They’re going to see excellence and account-ability in our education system. They’re going to see a refashioned government equipped for our next 100 years of pros-

perity.”Brewer also said she would end the

temporary one-cent sales tax hike to ex-pire, as promised, in 2013. The governor proposed the tax in 2010 to help ade-quately fund K-12 education, which had endured several rounds of budget cuts in previous years. The measure, Proposi-tion 100, was approved by 64 percent of voters on May 18, 2010, and went into ef-fect June 1 that year.

When the tax expires at the end of May 2013, the state will lose an estimated $900 million annually in revenue from the tax.

Brewer also used the State of the State address to laud her anti-federal govern-ment credentials.

“Now, as you might have heard, I take a back seat to no one when it comes to taking on Washington D.C.,” Brewer said.

The governor said she wants to re-build the state through limited govern-ment and a commitment to freedom.

“I ask you, once again, to join me in se-curing those freedoms: Freedom to build a business, without suffocating regula-tion. Freedom to build a life and to raise a family, without the nanny state inter-fering. Freedom to speak the truth about government, and those who would lead it, without fear of retribution. And free-dom to increase your income — without someone telling you that you’re making too much money,” Brewer said.

She also cited the pre-statehood 1902 Newlands Reclamation Act, which funded the construction of the Theodore Roosevelt Dam, as an example of better cooperation between the state and fed-eral government.

NEWS

Gov. Jan Brewer mingled with attendees at the State of the State event Tuesday (Jan. 10) at La Paloma.

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PUBLIC NOTICESBusiness bankruptcies, foreclosures and liens recorded in Tucson or Pima County and selected filings in Phoenix. Addresses are Tucson unless otherwise noted.

BANKRUPTCIES

Chapter 11 - Business reorganization Albert Martin Vasquez and Blanca Julia Vasquez doing business as El Saguarito Mexican Food, 6020 N. Swan Road. Principal: Albert Martin Vasquez and Blanca Julia Vasquez, joint debtors. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $1 million to $10 million. Largest creditor: Not fi led. Case No. 12-00023 fi led Jan. 3. Law fi rm: C.R. Hyde Brian K. Bissell and Tracy L. Bissell, 2330 N. Tanque Verde Place. Principal: Brian K. Bissell and Tracy L. Bissell, joint debtors. Assets: $394,011.97. Liabilities: $924,774.00. Largest creditor: Citimortgage Inc., Gaithersburg, Md., $463,900.00. Case No. 12-00034 fi led Jan. 3. Law fi rm: Eric Slocum Sparks David Alexander LLC, 1749 N. Oracle Road. Principal: Carlos Portillo and Mary Jane Portillo, member-managers. Estimated assets: Less than $50,000. Estimated liabilities: More than $500,000 to $1 million. Largest creditor: Canyon Community Bank $328,944.13 and Colson Services Corp., New York, $250,000. Case No. 12-00038 fi led Jan. 3. Law fi rm: C.R. Hyde Randall Scott Cohen and Cathryn Phillips Cohen, also known as Cathryn Ann Phillips, 6078 E. Paseo Ventoso. Principal: Randall Scott Cohen and Cathryn Phillips Cohen, joint debtors. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor: Not fi led. Case No. 12-00069 fi led Jan. 3. Law fi rm: Eric Slocum Sparks Catalina Ear Nose & Throat PC, doing business as Catalina Skin Institute, Catalina Therapy Services and Werner Institute for Balance & Dizziness, 5910 N. La Cholla Blvd. Principal: Randall S. Cohen, MD, president. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $500,000 to $1 million. Largest creditor: Not fi led. Case No. 12-00071 fi led Jan. 3. Law fi rm: Eric Slocum Sparks Zytoon LLC, 2905 E. Eighth St. Principal: John E. Jacob. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $100,000 to $500,000. Largest creditor: Not fi led. Case No. 12-0100 fi led Jan. 4. Law fi rm: Pro se. Case dismissed Jan. 5 due to lack of required attorney representation for Chapter 11 fi ling.

FORECLOSURE NOTICES Tortolita Landscaping Inc. 6913 N. Camino Martin 85741 Tax parcel: 101-05-01707Original Principal: $250,000.00 Benefi ciary: Bank of America, Phoenix and Kansas City, Mo. Auction time and date: 11 a.m., March 26, 2012 Trustee: James B. Ball, Poli & Ball, 2999 N. 44th St., Suite 500, Phoenix

LIENSFederal tax liens Johnny’s Cars & Trucks and Maria Del Socorro Valenzuela, 6429 S. Bright Sun Ave. Amount owed: $23,789.96. Southwest Cars & Trucks Inc., 8340 N. Thornydale Road 110-323. Amounts owed: $77,447.84 and $20,803.31. Law Offi ces Dan W. Montgomery and Danny W. Montgomery, 432 E. Speedway. Amount owed: $4,283.07. Y Cross Management Group LLC, 8375 N. Oracle Road, Suite 15, Oro Valley. Amount owed: $16,083.97.Arrington Wireless Services Inc., PO Box 1612, Sahuarita. Amount owed: $6,751.75. Bluefi eld ACH LLC, 9005 E. Bluefi eld St. Amount owed: $12,171.14. Christian Youth Theater Tucson, 6813 E. Broadway. Amount owed: $6,728.63.Munchkins Preschool & Daycare and Mercaba Enterprises LLC, 920 N. Swan Road. Amount owed: $2,136.00. Armando’s Auto Repair & Sales and Pauline Grijalva, 6530 S. Camino De Oeste. Amount owed: $12,457.38. Champion Auto Parts and Jose Refugio Becerra-Hernandez, 6308 S. Nogales Highway, Unit 41. Amount owed: $36,847.87.Brown & White Inc., PO Box 27283, Tucson 85726. Amount owed: $58,767.26. Fraternity Management Group and Jenson Noble Inc., 5055 E. Broadway, Building Suite C-214. Amount owed: $17,300.31. El Dorado Restaurant Inc., 1949 S. Fourth Ave., South Tucson. Amount owed: $2,205.89. Formula I Ltd., 596 E. 23rd St. Amount owed: $17,501.67.

Page 7: Inside Tucson Business 01/13/12

JANUARY 13, 2012 7InsideTucsonBusiness.com

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Page 8: Inside Tucson Business 01/13/12

8 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

PROFILE

ACT president fi ghts for jobs, subcontractors’ rightsBy Alan M. PetrilloInside Tucson Business

Jim Kuliesh is a tall, striking man with a head full of wavy white hair and a booming voice that gets attention no matter where he is. And Kuliesh couples that voice with some impressive persuasion skills to push for more jobs and stronger rights for subcontractors in Southern Arizona.

Kuliesh, president and chief executive offi cer of the Alliance of Construction Trades (ACT) in Tucson, has become the conscience of state and local governments when it comes to issues relating to subcon-tractors working in various building trades, from plumbing and electrical to landscap-ing and excavation to drywall and material suppliers.

He’s a 16-year veteran in his current position with ACT and lists three major accomplishments at the state level and several at the local government level.

Statewide, ACT, and Kuliesh in particu-lar, led the successful charge to get a Prompt Pay law enacted for subcontractors. Before passage of the law, general contrac-tors (GC) often would withhold a subcon-tractor’s payment for completed work because the general contractors themselves hadn’t been paid by the project owner. With Prompt Pay, that shouldn’t happen any more.

“Timely payment is our greatest concern,” Kuliesh said, “and it’s something that’s often opposed by the GCs.”

Kuliesh and ACT also were instrumental in the statewide passage of lien law reform and workers compensation reform legislation, two areas that were addressed through the Arizona Construction Coali-tion, a group Kuliesh helped form.

In Tucson, Kuliesh was the driving force

behind the city’s passage of the Construc-tion Fairness ordinance, a law that Kuliesh called “the only one of its kind in the nation.”

When a subcontractor or anyone in the construction industry is having a problem of not getting paid, Kuliesh said, “whether from a GC to a sub, a sub to a supplier or a owner to a GC, they don’t have to hire an attorney. Th ey fi ll out forms and the city attorney prosecutes the case.”

Kuliesh and ACT also got Tucson’s city council to pass an Apprenticeship Funding program, where on every city construction project, money is set aside for an ACT-sponsored youth training program.

“It’s so important to bring young people into the construction trades and our apprenticeship program is one of the ways we’re trying to increase their participation,” Kuliesh said.

Another legislative coup for Kuliesh and ACT happened when the City of Tucson ap-proved its Bid Listing ordinance (proposed and supported by ACT), where general contractors must list their subcontractors on their bids for work on city construction projects.

“Th e law eliminates bid shopping, which was a big problem before bid listing was passed,” Kuliesh observed.

Kuliesh, who has years of experience as a drywall contractor in Florida, started that state’s fi rst subcontractors mixed trades group in Tampa more than 20 years ago and eventually formed another half-dozen subcontractors associations around the state. In 1995, he was lured to Tucson at a time when the predecessor group to ACT, the Tucson chapter of the American Subcontractors Association, was struggling.

“Membership was down to under 50

Jim Kuliesh has led ACT since 1995.

BIZ FACTS

Alliance of Construction Trades465 W. St. Mary’s Road, Suite 100 www.actaz.net(520) 624-3002 or toll-free at 1-877-243-7671

companies, one volunteer was running the offi ce and only 10 people would show up for a membership meeting,” Kuliesh said.

Today, ACT has a membership of nearly 300 construction and construction-related companies, a paid staff of four, and typically turns out 80 to 100 people for its monthly business meetings.

Not long after Kuliesh took the helm of ACT, he was approached by University of Arizona representatives who told him they were not getting enough qualifi ed subcon-tractors to work on University construction projects.

“We sat down with them and showed

them how our subs could build quality structures, on time, on budget and with no lawsuits at the end of the job,” Kuliesh said. “Over the past 10 years, our members have done over a billion dollars worth of work with the University of Arizona with no problems or lawsuits. Th ey’re great partners.”

Another ACT accomplishment is an agreement with fi ve local governmental jurisdictions — Pima County, the cities of Tucson and South Tucson and the towns of Marana and Sahuarita — to take over handling of all water heating permits.

“It’s all done online and we developed the software to handle it,” Kuliesh said.

ACT PAGE 9

ACT

phot

os

Page 9: Inside Tucson Business 01/13/12

JANUARY 13, 2012 9InsideTucsonBusiness.com

ACT | CONTINUED FROM PAGE 8

PROFILE

“Subcontractors participating in the program fi rst have to become certifi ed, then when a water heater has to be installed, the sub goes online and pulls the permit for the proper jurisdiction.”

Kuliesh said there are several benefi ts for the public with the program — the homeowner knows the person coming into the house because he’s identifi ed by a badge; the homeowner knows the indi-vidual is qualifi ed to do the work; and the cost of the permit has been reduced.

Kuliesh said permits, depending on the jurisdiction, went from between $60 and $130 down to $22.50 per permit in each of the municipalities.

Th e program has been in operation less than three months, so Kuliesh is waiting to see what eff ect it has.

“As the success of the program grows, we think there are other areas of construc-tion that can be added,” he said, “for instance, electrical and HVAC (heating, ventilating and air conditioning) permits.”

ACT also operates a contractor referral program for the public. Anyone seeking a plumber, electrician, landscaper or heating, ventilation, and air conditioning technician and a number of other trade specialties can contact the ACT offi ce and get a referral to an ACT member. Th e

referral program is in place for both residential and commercial work.

For Kuliesh, it’s all about jobs and promoting subcontractors. His vehicle license plate reads, ACT SUBS, a refl ection of his priorities.

“Construction has always gone up and down,” Kuliesh observes, “but what we’re going through now is a construction depression, which is why we have to concentrate on jobs.”

One eff ort Kuliesh and ACT are making on that front is a Job Ordinance proposal being drafted for the city of Tucson that would require a certain percentage of local workers for every city construction project. ACT is working with city staff ers, stakehold-ers, general contractors, homebuilders and subcontractors to come up with a proposal that satisfi es everyone, Kuliesh noted.

“Th ere are many questions and concerns about the proposed job ordinance — legal questions that have to be answered and questions about how the city would enforce it,” he said. Kuliesh added ACT is looking at 19 other cities that either have similar ordinances or are contemplating them.

“We have to report back to the mayor and council in 90 days,” Kuliesh said. “But in the end, we believe that paychecks on Friday for local workers will solve many problems and help the city bring in revenue.”

UA Th eatre presents ‘Radio Hour’

to celebrate state centennialBy David Hatfi eldInside Tucson Business

Th is could be one of the fun things to do to celebrate Arizona’s Centennial: the University of Arizona School of Th eatre, Film and Television’s musical touring company is presenting a program called “Arizona Radio Hour,” at 7:30 p.m. Jan. 21 in the Tucson Scottish Rite Cathedral, 160 S. Scott Ave.

Set against the backdrop of a fi ctitous radio station facing permanent closure, the hour-long program unfolds with songs from the old West, the World War II years as well as romantic songs in tribute to Arizona’s admission to statehood on Valentine’s Day, Feb. 14, 1912. Th e pro-gram is interwoven with vintage commer-cials and facts about the state’s history.

Th e best part is that general admission tickets are free. Call the UA Fine Arts Box Offi ce at (520) 621-1162 weekdays between 11 a.m. and 4 p.m. or visit it in person in the lobby of the Marroney Th eatre, 1025 N. Olive Road, near the southeast corner of East Speedway and Park Avenue.

All-Star Game on TVTucson could get some positive TV

exposure from the inaugural Casino Del Sol College All-Star Game to be played at 6 p.m. Monday at Kino Stadium. Th e game will be shown live on Fox Sports Arizona but, more importantly, it will get national distribu-tion live on the Fox College Sports Pacifi c network that’s available on cable systems. While the number of subscribers doesn’t come close what the major sports networks have, the game could be mighty appeal-ing to avid football fans craving a dose of Monday-night to cap off a holiday weekend.

Names in newsA couple of TV sales executives started

the new year with new jobs and new stations. After more than 10 years as the national sales manager at KVOA 4, Lynn Jeff ries joined KOLD 13 where she is a sales manager. Under KOLD’s structure, there are two sales managers; Jeff ries and Angelle Croman, who has been there since June 2008. Both work under Director of Sales David Rash. Before going to work at KVOA, Jeff ries was a sales consultant for three years at Slone Broadcasting and before that she was general sales man-ager and minority owner for fi ve years at a group of radio stations in Oklahoma.

Also this month, Scott Rein, for-mer national sales manager and local sales manager at KGUN 9, joined the sales staff as an account executive at KPHO, the CBS affi liate in Phoenix.

After taking a year off , Chuck Meyer, the former program director at the Source KCUB 1290-AM, is back in local media working at the Journal Broadcast Group. His duties include being a Web producer for KGUN 9 and reporting news in the morn-ing on three of the group’s radio stations: Mix-FM KMXZ 94.9-FM, the Truth KQTH 104.1-FM and the Groove KTGV 106.3-FM. An industry veteran, Meyer came to Tucson in 2004 to help launch the Source for what was then Citadel Broadcast-ing that had just acquired the broadcast rights to University of Arizona sports.

KOLD News Now goneKOLD News Now on KOLD’s digi-

tal channel 13.3 is history. Although the channel had a following and Debbie Bush, vice president and general manager of KOLD, said she’s heard from some of those viewers, the fact is that all things considered, it wasn’t worth continuing.

For one, viewers spent very little time watching the service, which mostly consisted of weather news. On top of that, viewing of KOLD’s MeTV channel, 13.2, has proven to be much more popular and by eliminat-ing the second digital of programming the quality of MeTV’s signal is improved. Finally, Federal Communications Commission rules require that all broadcast stations, includ-ing digital channels, must schedule at least three hours of education and instructional programming each week for children.

Broadcaster bankruptcyHere’s another story illustrating what a

tough world it is out there for media and with a Tucson connection. Peak Broadcast-ing on Tuesday (Jan. 10) fi led for Chapter 11 bankruptcy reorganization. So who is Peak Broadcasting, you ask? It’s a company orga-nized by Todd Lawley, who spent nearly 10 years in top Tucson radio management jobs before leaving in 2005 to organize Peak. Th e company is headquartered in Fresno, Calif., where it owns fi ve radio stations and owns another six stations in Boise, Idaho. In its fi l-ing the company listed both assets and debts of between $50 million and $100 million.

Lawley issued a statement saying the company’s stations have improved opera-tionally “during one of the most diffi cult periods in radio broadcasting history” and he expects to emerge from bankruptcy “with a stronger fi nancial foundation.”

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

MEDIA

Page 10: Inside Tucson Business 01/13/12

10 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

SMALL BUSINESSASBA ADVICE

Beating the post-holiday blahs to get motivated in the new yearBy Louise Keith Abbot

It happens to even the most enthusiastic, devoted entrepreneur. It’s a new year and in spite of your best eff orts, you have lost momentum and are off your game.

You go into your offi ce, you stare at the pile of work, the unanswered emails, the phone calls you know you need to make and it all looks so overwhelming.

Th e rush of the holidays, out-of-town guests, extreme highs or lows in business volume and suddenly, you are behind in everything.

Worse yet, you aren’t really motivated to get started again. Many of us half-heartedly begin with something and then quit early and feel lousy about ourselves.

Here are some ways to get yourself back in the groove, excited again about your business.

1. Admit that you aren’t motivated and that it is OK to feel that way.

Sometimes, admitting that we feel negatively about our business can move the blockade of inertia. Everyone loses steam sometimes, why not you? You are human and constant eff ort with no break or slowdown is

just unrealistic. Make a mental note that this is going to

happen from time to time in the lifetime of your business and that you will have strategies for dealing with it the next time it happens. And it WILL happen.

2. Talk about how you are feeling. Talking with an understanding listener

can help get perspective on what is going on. IS this a real crisis, or just a temporary dip in energy and enthusiasm?

You don’t want to go whining to just anybody; pick another person who may have experienced the same thing and has come through it themselves. You will probably fi nd that you are not alone in this feeling and hearing about the experiences of others will help you.

3. Review your most powerful “why.”Take time to remember why you got into

this business. Go back to the beginning when you were planning how this would be a way for you to express your creativity, be your own boss, and make a diff erence in the world.

Whatever it was, get back there and relive those memories of excitement, hope and anticipation. Remember that the world needs you and what you have to contribute.

4. Commit to your most powerful action that will have the greatest eff ect.

Close the door, sit down at your desk or computer, turn off the phone and look at your planner and list of things to do. You know that there is ONE thing that if you do it, it will make a huge diff erence in your business and getting you back on track.

Pick the smallest, easiest thing that will make the most impact. Set a timer if you need to, but begin to work on that one thing. Making the decision about what is important and then moving on it, is the most motivating action you can do.

5. Acknowledge your accomplishments.Take time to notice where you have been

successful in the last several months. Chances are there are many wins, successes

and gains that you have overlooked. Looking at your business in terms of successes rather than failures may be just the boost you need.

I would also encourage you to explore the benefi ts and resources available through the

Arizona Small Business Association. Visit asba.com to view the opportunities available to make money, save money and amplify your voice in the coming year.

Don’t be overly concerned about dips in motivation. All humans wax and wane in our ability to be at the top of our game.

With knowledge, perspec-tive and careful strategies we can smooth over the low points and recover faster with less angst and guilt.

Louise Keith Abbot works in the

Southern Arizona offi ce of the Arizona Small

Business Association, 4811 E. Grant Road, Suite

262, in Crossroads Festival, phone (520)

327-0222.

Got the

post-holiday

blues?

PEOPLE IN ACTION

NEW HIRES

Comcast has hired Alan Price as the general manager/director of operations for the Tucson Operation. Price comes to Tucson from Comcast in Spokane, Wash. where he was responsible for technical operations and oversaw installation and deployment of many products and the upgrade and integration of three adjacent cable systems. He is also certifi ed as a master technician from the National Cable Television Institute.

Comcast also hired Pam Odom as a business assurance manager. She is responsible for overseeing

daily business operations and managing the fi nancial affairs of the system. Odom most recently served as the regional business assurance manager for Comcast in Seattle where she managed and performed independent reviews and evaluations of all operations and activities.

The University of Arizona Medical Center – South Campus has hired interim administrator Sarah Frost to fi ll the position permanently. Frost has served as the hospital’s interim administration since September. Frost previously served as associate administrator and chief administrative offi cer for The University of Arizona Medical

Center – South Campus, formerly known as University Physicians Hospital.

The Arizona Small Business Association (ASBA) has hired Jerry Bustamante as director for the Southern Arizona region. Bustamante will help grow the association’s presence and to assist entrepreneurs and small business owners in Southern Arizona. Bustamante is a longtime Tucsonan graduated from the University of Arizona.

Ryan Hansen has joined Bon Voyage Travel as vice president and chief operating offi cer. Hansen comes to Bon Voyage following a 19-year career

in the athletic department at the University of Arizona. Hansen’s positions at the UA included coordinator of basketball operations, director of development and donor services and associate athletic director for annual giving and major gifts. Hansen also worked as a commentator for UA basketball radio broadcasts from 1997-2009 and

currently hosts the UA men’s basketball radio pre-game show on the Arizona IMG Sports Network. Hansen holds a bachelor’s degree in health related professions and a master’s in educational psychology-physical education from the University of Arizona.

PROMOTIONS

Keegan, Linscott & Kenon, PC has announced Bret J. Berry, CPA, has been promoted to director of audit services. Berry has more than 14 years of accounting experience.

APPOINTMENTS

The Internal Revenue Service announced the selection of Ben Tuchi to serve on the nationwide Taxpayer Advocacy Panel (TAP). The TAP is a federal advisory committee charged with providing direct taxpayer feedback to the IRS. The TAP listens to taxpayers, identifi es issues and makes

suggestions for improving IRS service and customer satisfaction. Oversight and program support for the TAP are provided by the Taxpayer Advocate Service, an independent organization within the IRS that helps resolve taxpayer problems and make recommendations to avoid future problems.

ANNIVERSARIES

Dr. Robert Lusch of the University of Arizona celebrates 40 years a member of the American Marketing Association. He has a master’s degree from the University of Arizona and a doctorate from the

University of Wisconsin. He has taught and served as dean of the College of Business Administration at the University of Oklahoma and then the dean of the M.J. Neeley School of Business at Texas Christian University. Lusch returned to UA in 2004 to head the Marketing Department at the Eller School of Business Management. He holds the James & Pamela Muzzy Chair in Entrepreneurship and is Executive Director of The McGuire Center for Entrepreneurship.

Sarah Frost Jerry Bustamante Ryan Hansen Alan Price Pam Odom Bret J. Berry

Now your business can tell Inside Tucson Busi-ness about new hires, promotions and special awards online. Go to www.insidetucsonbusi-ness.com and click the “People in Action” but-ton. From there you can submit your announce-ment and we’ll publish it online and in print.

{TELL US ONLINE}

Page 11: Inside Tucson Business 01/13/12

JANUARY 13, 2012 11InsideTucsonBusiness.com

Page 12: Inside Tucson Business 01/13/12

12 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

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TOURISMTOURISM IN TUCSON

Marketing Tucson to groups andmeeting and event travel planners

Meetings, events and conventions that attract visitors from outside the Tucson region, for multiple night stays, are a unique compo-nent of overall tourism promotion. And while only accounting for 30 to 35 percent of visitation into our region — leisure travel makes up the balance — group business has a high profi le in the industry nationally and locally.

Th e primary focus of the Convention Sales team at the Metropolitan Tucson Convention & Visitors Bureau (MTCVB) is to promote the region as a meeting and event destination.

Nationally, meetings represent a $265 billion per year industry and are a signifi cant economic driver for our region. Th ey are one of the most easily measured types of travel allowing us to track the number of people, their length of stay and activities while they are here.

In fact, the MTCVB will be one of the fi rst destination marketing organizations in the country to utilize a new economic meetings calculator developed by Oxford Economics which will provide an analysis of how much tax revenue is generated, direct jobs are infl uenced and overall true economic impact a single conference/convention event has on our community.

Last year alone, group travel into the region, by MTCVB clients, accounted for more than 330,303 occupied hotel and resort rooms in the greater Tucson area.

Ways that we target group meetings include: • Outbound sales missions into primary

(feeder) markets such as Chicago, Washington, D.C., Denver, Minneapolis, Dallas, the San Francisco Bay Area and Phoenix.

• Membership and active participation in all “meetings industry” trade organizations on a local and national level.

• Exhibition at all “meetings industry” travel and trade shows and in some instances partnering with the Phoenix and Scottsdale convention and visitors bureaus to help reduce costs and increase reach.

• Coordination of site visits to create travel experiences for qualifi ed planners to preview Tucson. Our “Tucson on Us” program allows for conversion of greater than 70 percent of the prospects that visit the region. Th is reinforces the understanding that our best tool in securing business is simply “getting them here.”

• Active account management of known entities that produce consistent meetings and convention activity for the area, targeted direct marketing to create awareness of the destina-tion and use of booking incentives to drive business and increase meetings spend at partner properties.

Our recent Master Account Incentive Program produced over $30 million worth of group business and also won the “Best Idea” award from the Western Association of Convention & Visitors Bureaus.

MTCVB’s hospitality sales team is com-prised of six national sales managers who are passionate representatives of our destination

MARKETING PAGE 13

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TOURISM

and incredibly well-versed in the “products” of our region.

Most of the sales staff has worked in Tucson selling individual brands including Radisson, Hilton, Westin and Loews, prior to joining the bureau.

Th eir experiences at these properties, knowledge of the region’s history, attractions and other visitor amenities make them the perfect ambassadors for Tucson and Southern Arizona.

We measure our success using four industry standard benchmarks: Leads generated, bookings confi rmed bookings, total room nights and estimated economic impact.

In fi scal year 2010-2011 the estimated economic impact of meeting, convention and sports activity generated by the MTCVB was over $141 million.

Th ere are also these additional points to consider:

• Prospective visitors and clients view the entire region as Tucson, free of the biases we locals may have toward a particular area or areas. A dollar spent in Marana is as valuable to our local economy as a dollar spent in Tucson or in unincorporated Pima County and so on. We must be “all in.”

• Time and again, planners tell us they are drawn to our area by the fantastic climate, beautiful Sonoran desert landscape, authentic-ity of the destination, diversity of local cultures and the genuine hospitality they encounter here. Th ese are our greatest assets as we endeavor to promote Tucson as a destination.

• In many instances, what we do is a commodity-driven process, meaning that if you do not have the facilities and infrastructure that meet a group’s basic need, odds of winning that business are minimal. Even “great sunsets” cannot overcome very real, physical limitations.

We must fi nd a solution to our non-compet-itive situation when it comes to providing package that includes a downtown convention center and hotel.

Curious about how you can get involved? If you are a member of an organization —

social, professional, etc. — and fi nd yourself

traveling outside the region to attend meetings, let us help you bring your group to Tucson. Go to visittucson.org/surveys/embracemeetings and let’s get to work!

Contact Graeme Hughes, director of Con-

vention Sales at the Metropolitan Tucson Conven-

tion & Visitors Bureau, at [email protected].

Th is monthly column is prepared by the MTCVB.

MARKETING | CONTINUED FROM PAGE 12

JW Marriott Starr Pass Resort & Spa – Photo Courtesy of Tucson CVB

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Page 14: Inside Tucson Business 01/13/12

14 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

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MEALS & ENTERTAINMENT

Getting a new perspective on the most important meal of the day

Th e saying that breakfast is the most important meal of the day is being embraced anew by a couple resorts — Hacienda Del Sol and the Ritz-Carlton Dove Mountain — and honored at another, Westward Look.

Th e Grill at Hacienda Del Sol, which has off ered Sunday Brunch for years, on Monday (Jan. 16) will start serving break-fast the other six days of the week. Th e a la carte menu will be off ered from 7 to 10 a.m. both in the Grill and on the Terraza patio.

Obviously, the new off ering taps into the tourist season but it’s also a new option for a morning breakfast meeting.• Grill at Hacienda del Sol, 5501 N.

Hacienda Del Sol Road — www.hacien-

dadelsol.com/ — (520) 299-1501

Brunch at the RitzBeginning this weekend, Ritz-Carlton

Dove Mountain launches a Market Brunch at its main restaurant, Core Kitchen & Wine Bar. On the menu is an assortment of seafood and hand-rolled sushi, a carving station featuring seasonal selections and lots of pastries. Th ere are also libations featuring fruit from the 42-tree citrus grove on the grounds of the resort.

If you’re among those who still haven’t had occasion to visit the Ritz-Carlton, this is a prime opportunity to indulge yourself. Of course indulgence has a price, at the Market Brunch is $48 per person, including one mimosa, or go all out with unlimited mimosas for $60 per person. Children 12 and younger at $20. Prices don’t include

tax or gratuity.• Core at the

Ritz-Carlton Dove

Mountain, 15000

N. Secret Springs

Drive, Marana —

www.ritzcarlton.

com/en/Proper-

ties/DoveMoun-

tain/ — (520)

572-3000

Gold server honored Judy Gutierrez, a 32-year employee of

Westward Look Resort and a morning server in the resort’s Gold restaurant, exemplifi es Arizona hospitality so much she was selected Employee of the Year last month by the Arizona Hotel and Lodging Association.

“Judy is genuinely representative of Westward Look’s Southwestern charm with her warm, gracious hospitality and her hard work, dedication and loyalty,” said Craig Waterman, general manager of the resort. “Every time she welcomes guests to breakfast at Gold, she makes them feel like family members and ensures each indi-vidual starts his or her day with a smile.” • Gold at Westward Look Resort, 245 E.

Ina Road — www.westwardlook.com/ —

(520) 297-1151

Contact Michael Luria at mjluria@

gmail.com. Meals & Entertainment appears

weekly in Inside Tucson Business.

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all-star game, Ritchie said the game cold have positive economic impact for Tucson.

“It’s a niche that could help Tucson,” Ritchie said. He noted that the game is one of a handful of such events in college sports and it falls on a holiday weekend with little competition from other college sporting events.

Crest contributed $8,000 to the event and plans to donate game tickets to youth sports programs.

Ritchie also said the game gives Tucso-nans the chance to see a large group of future NFL players on one gridiron.

While most of the players aren’t the mar-quee stars of their re-spective team, some of the players will be familiar names to Uni-versity of Arizona fans.

Seniors Derek Earls, Robert Golden, C.J. Parish, Mohammed Usman and Paul Vas-sallo plan to suit up for the Stripes team in the Stars-and-Stripes themed game.

Earls, a linebacker from Waconia, Minn., started all 12 games and led the Wildcats with 74 tackles.

Golden, a cornerback from Fresno, Calif., had 69 tackles and one interception for Ari-zona this season.

Parish, a defensive end from College Sta-tion, Texas, led the Wildcats with 10 sacks.

Usman, a defensive end from Arlington, Texas, started 11 games and had 19 tackles this season.

Linebacker Vassallo, from Reno, Nev., had 70 tackles on the season.

All together, more than 90 players from across the country plan to participate in the

game and scouts from most NFL teams also will attend.

Th e rosters include players from Arizona State, Boise State, Colorado, LSU, Michi-gan, Oklahoma, Penn State and Pittsburgh, among others.

Feder called the game an extended ad-vertisement for the region.

“Th is is a commercial, a three-and-a-half hour commercial,” Feder said. “Th at’s the kind of attention Tucson needs.”

Th e game is scheduled for broadcast in Arizona and other markets in the Southwest and South.

But the key to success for the Casino Del Sol All-Star Game rests with the commu-nity.

Feder said that means selling at least 6,000 tickets and to continue to snare spon-sorships from the business community.

“Without selling tickets,” he said “we’re done.”

Contact reporter Patrick McNamara at pmc-

[email protected] or (520) 295-4259.

CONTINUED FROM PAGE 3

The Casino Del Sol College All-Star game claims to trace its roots back to 1939 as the Blue-Gray Football Classic played on or near Christmas Day each year in Montgomery, Ala., until 2001. After skipping a year, organizers revived it again in 2003 when it was played in Troy, Ala., about 50 miles southeast of Montgomery.

After that, organizers were unsuccessful in landing a major sponsor until last year when the Eastham En-ergy College All-Star Game was played Jan. 23, 2011 at Sun Devil Stadium, Tempe.

GAME HISTORY

OUT OF THE OFFICE

Page 15: Inside Tucson Business 01/13/12

JANUARY 13, 2012 15InsideTucsonBusiness.com

DAILY NEWS — DELIVERED TO YOU!EVERY MORNING

FREE TO SIGN UP: GO TO INSIDETUCSONBUSINESS.COM AND CLICK THE NEWSLETTER TAB!

Are you interested in business news everyday? SO ARE WE!

Sign up today and receive the Inside Tucson Business e-newsletter directly to your inbox everyday. PRO TUCSON. PRO BUSINESS.

MuseumWhile most Tuc-

sonans are familiar with the annual Ro-deo Parade, not so many have visited the Rodeo Parade Museum, 4823 S. Sixth Ave. Th e muse-um, which has a stag-gering collection of

vintage stagecoaches, buggies and other items from the old West, is currently open from 9:30 a.m. to 3:30 p.m. Mondays through Saturdays.

Tickets are $10 for adults, $8 for seniors, $2 for children with 50 percent discounts to military and their families.

From February 18-26, the museum will only be open from 11 a.m. to 1 p.m., except Feb. 23 it will be closed for the parade. It will also be closed Feb. 27 before returning to regular hours on Feb. 28.

ArtIn the law offi ces of Mesch, Clark and

Rothschild, 259 N. Meyer Ave., the work of two retired deans from the University of Arizona will be on display through March. Maurice Sevigny from the College Fine Arts, and Chuck Albanese from the School of Architecture are exhibiting paintings and mixed media. Th e best way to see the exhibit is to schedule an appointment by calling the fi rm at (520) 624-8886.

Also on display is “World Travelers: Th e Collages of Barbara Brandel.” Th is exhibit at the Tucson Pima Arts Council space in the Pioneer Building, 100 N. Stone Ave., will be up until March 28.

Contact Herb Stratford at herb@

ArtsandCultureGuy.com. Stratford teaches

Arts Management at the University of Arizona.

He appears weekly in Inside Tucson Business.

HERB STRATFORD

ARTS & CULTURE

Downtown Tucson is the place to be Saturday night (Jan. 14) for one of two musical performances that’s bound to satisfy your musical taste.

Legendary trumpeter and conductor Doc Severinsen will team up with the group El Ritmo de la Vida (the Rhythm of Life) at 7:30 p.m. at the Music Hall in the Tucson Convention Center, 260 S. Church Ave. Severinsen, who led the “Tonight Show” band from 1962 to 1992 during the Johnny Carson years, met the musical group in Mexico and together they present music highlighting guitar, violin and trumpet.

Ticket prices range from $33 to $78 available through the Tucson Symphony Orchestra.

Meanwhile, at 8 p.m., the Rialto Th eatre, 318 E. Congress St., presents the Beatles cover band Fab Four: Th e Ultimate Tribute. Th e band has been acclaimed as one of the best of its genre, blending live note-for-note performances and amazing attention to detail and staging. Tickets are $27.50 and $35.

FilmTh e Tucson International Jewish Film

Festival began Th ursday and continues through Jan. 22 at several locations including the Jewish Community Center, 3800 E. River Road. Th e annual festival presents a range of fi lms drawn from around the world. Of particular note in this year’s line up, look for “Th e Jazz Baroness” at 7 p.m. Sunday. “Th e Match-maker” at 1:30 p.m. Wednesday (Jan. 18) and “Lenin in October” as part of a triple feature the afternoon on Jan. 20 all in the auditorium at the JCC.

Full details are at www.TucsonJCC.org, click the arts and culture tab at the top of the page.

Two concerts downtown Sat.to satisfy your musical tastes

OUT OF THE OFFICE

Page 16: Inside Tucson Business 01/13/12

16 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

GOOD BUSINESSPR CORNER

Is your business seizing the opportunities of changing times?Again and again, I’ve been inspired by

this quote from change management guru, Price Pritchett: “Change always comes bearing gifts.”

Pritchett’s thought speaks to me primarily because it skips right through the “victim of change” stage, where we like to tarry, and the “acceptance of change” stage, which comes attached to a big woe-is-me sigh, and goes right to the heart of the matter. Th ose who embrace change, even help to create it, are inevitably those who fi nd themselves on the cutting edge of success. Th ese forward-thinking individu-als receive the gifts that change brings

because they are prepared to recognize them for what they are and put them to use to make things better.

Th e fact is that change, properly managed, provides a golden opportu-nity to do things diff erently, better,

and with tangible results.So, what will you do to get ready to

capitalize on change and to accept the

JODI HORTON

opportunities that will inevitably be coming your way? A seasoned public relations professional may be just the right person help you through this process with a minimum of pain and a surfeit of gain.

Why a PR pro? Because the opportunities may involve internal tweaks to your processes and procedures, but they are most frequently realized in improvements to the way you interact with your “publics” — your employ-ees, customers, vendors and the community at large. In short, change is the excuse you need to do things better, especially in those all-important areas of communication and shaping your public persona.

Let’s face it. In recent years, due largely to changes in our economy, the entire business landscape has shifted. Have you asked yourself how you will alter your business model and tailor your business practices to ensure your survival? If you haven’t, do it now. And if survival isn’t a certainty, think about how you might bow out gracefully and do something diff erent.

Take a hard and honest look at the business’ strengths, weaknesses, opportunities and threats (SWOT) presented by the changes.

Most often, the results provide answers

to your questions about how best to proceed strategically. Strengths that may have gone unrecognized provide a foundation for next steps. Th ere are clues to where opportunities may be found. And then it is easier, to develop an action plan that comprehends the changes we face and uses change as a stepping stone to a brighter tomorrow.

In conclusion, my questions to you are:• Are you truly open to receiving the gifts

that change can bring?• Are you able to approach change with

purpose, with a spirit of adventure and optimism?

• Are you ready to innovate?• Would you like assistance recognizing

the possibilities for your business?If your answered yes to these, my advice

to you is simple: Seriously consider adding a public relations professional to your team of trusted advisors.

Jodi Horton, APR, is owner of Ideas@

Work Inc., to organizations with communica-

tion strategy and execution. She is a member

of the Southern Arizona chapter of the Public

Relations Society of America, whose members

produce this monthly column.

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Page 17: Inside Tucson Business 01/13/12

JANUARY 13, 2012 17InsideTucsonBusiness.com

GET ON THE LISTNext up: Advertising agencies, Public relations fi rms, Graphic design fi rms

With 2012 now underway, we’re collect-ing data for the 2013 edition of Th e Book of Lists. Upcoming categories that will be pub-lished in Inside Tucson Business are:

• Jan. 20: Advertising agencies, Public re-lations fi rms, Graphic design fi rms

• Feb. 3: Paid subscription newspapers, Free newspapers, Magazines

• Feb. 10: Commercial real estate brokers, Commercial building contractors, Commer-cial real estate managers

• Feb. 17: Manufacturing fi rmsIf your company fi ts one of these catego-

ries, now is the time to update your profi le. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab. New and unlisted businesses can create a profi le by following the directions.

Th e Book of Lists is a year-round reference for thousands of businesses and individuals. To advertise your business, call (520) 294-1200.

GOVERNMENTKozachik aid takes helm of troubled ParkWise

The City of Tucson has hired Donovan Durband as administrator for ParkWise, which coordinates the city’s downtown parking assets.

The program has come under scrutiny in recent months following a series of thefts that emptied thousands of dollars from downtown parking meters and other allega-tions of financial mismanagement, includ-ing giving away free utilities to a restaurant tenant. Chris Leighton, the previous ParkWise director, was fired.

Durband has served as City Council Administrative Aide for Councilman Steve Kozachik since 2009. His experience includes being the former executive director of the Tucson Downtown Alliance, now known as the Downtown Tucson Partnership. During that time he served as a member of the ParkWise Commission from 2000 to 2008.

Durban has a master’s degrees in urban planning from the University of Arizona. He starts to work in his new job Jan. 23 and will be paid $69,992 annually.

Applicants sought to fi llSahuarita council seat

Sahuarita town offi cials are accepting applications to fi ll a vacant seat on the town council. Applications must be fi led with the town clerk by 5 p.m., Jan. 19. Th e term for the appointment will expire in 2013 when someone is elected to fi nish the term.

Qualifi ed applicants must be at least 18 years old, a registered voter and reside in the town Sahuarita at the time of appointment; and have resided in Sahuarita for at least one year immediately prior to the appointment.

Applications are available at the Town Clerk Department, Town Hall, 375 W. Sa-huarita Center Way, from 8 a.m. to 5 p.m. Monday through Friday.

ENVIRONMENT Az Tech Council sponsors electronics recycling

The Arizona Technology Council Foundation will hold a technology recycling event from 8 a.m. to 3 p.m. Jan. 21 at three locations in Tucson.

People will be able to drop off old or defective personal computers, computer peripherals, networking equipment, main-frames, servers, point-of-sale equipment, printers, audio/visual and telecom devices,

surplus metals, wire, cable and power strips. Miscellaneous electronic items such as test and lab equipment also will be accepted.

A portion of the equipment will be donated statewide to support Arizona edu-cational programs.

The drop-off locations are: • Gangplank, 5120 S. Julian Drive• ITT Technical Institute, 1455 W. River Road• Texas Instruments, 5411 E. Williams Blvd.The recycling is also supported by Data

Doctors and Westech Recyclers. Information is online at www.datadoctors.com/mkt/AZ.

CIVICChristina-Taylor Green’s mother to sign books

Roxanna Green plans to share sign copies of her book “As Good As She Imagined,” about her daughter Christina-Taylor Green, at two local book-signing events this month.

Christina-Taylor Green was 9 years and the youngest victim of the Jan. 8, 2011, shooting that left six people dead and 13 others, including U.S. Rep. Gabrielle Giffords, dead.

The signing events are scheduled for 1 p.m. Saturday (Jan. 14) at Costco Wholesale, 6255 E. Grant Road, and 3 p.m. Jan. 21 at Barnes and Noble, 7325 N. La Cholla Blvd., Suite 100, in Foothills Mall.

BRIEFS

SPECIAL EVENTS

Women Impacting Tucson luncheonMonday (Jan. 9)11:20 a.m. to 1 p.m.Manning House 450 W. Paseo RedondoRSVP: [email protected] or (520) 770-0714Cost: $25 (with RSVP by Jan. 5 - $20)

Mexico Trade AutomationWednesday (Jan 18)5:30 to 8 p.m.Viscount Suites Hotel 4855 East Broadway Info: Al Altuna [email protected] or (520) 977-3626 Cost: $30 (members & 1st-timers: $25)RSVP by Jan. 6www.saleo.org

AZ Wellness Coalition 4th Tuesday Networking BreakfastDr. Rubin Naiman presents: “Mindful Sleep: Turn on, Tune In, Nod Out.”Tuesday (Jan. 24) 7:45 to 10 a.m. Manning House 450 Paseo Redondo Info: [email protected] of (5200 322-0832

Cost: $20/members, $25/non-memberswww.AzIntegrative.org

An Evening with Noam Chomsky: “Education for Whom and For What?”Wednesday (Feb. 8)7 p.m. to 8:30 p.m.Centennial Hall 1020 E. University Blvd. Contact: Lori Harwood [email protected] (520) 626-3846http://web.sbs.arizona.edu/college/chomskyCost: Free

Women In Construction WeekTucson Chapter of the National Association of Women in ConstructionSunday (march 4) to Saturday (March 10)Contact: Michelle Quinn [email protected] or (520) 440-7627Website: www.nawictucson.orgFree

REGULAR MEETINGS

Fountain Flyers ToastmastersEvery Tuesday6:30 a.m.

Coco’s Restaurant7250 N. Oracle RoadInformation: Cheryl at (520) 730-4456Cost: Free to visit

Got a business challenge, 30 minutes & 20 bucks?Every Tuesday and Thursday 8 to 9 a.m.Savaya Coffee Market 5530 E Broadway Ste.174 Info: Dale Bruder, Dynamic Strategist [email protected] (520) 331-1956 www.dalebruder.com $20

Group Referral Organization networking group First and third WednesdaysLuna Bella2990 N. Swan Road Suite 145Information: www.grotucson.com

GRO IISecond and fourth ThursdaysSam Hughes Championship Dining446 N. Campbell Ave. Suite 150Info: www.grotucson.com

Independent Business Networking Tucson “IBNT”Second and fourth Tuesdays El Parador2744 E. Broadway RSVP: Jennifer Row at (520) 603-3315 or [email protected]: First time is free

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. SpeedwayRSVP: 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

LeTip TucsonExecutives Chapter meetingEvery Tuesday, 11:30 a.m. to 1 p.m.

Macayo’s Mexican Kitchen 7360 N. Oracle RoadRSVP: (520) 299-9600, [email protected]

LeTip International I-19 Business NetworkersEvery Tuesday, 11:30 a.m. to 1 p.m.Amado Territory I-19 exit 48Information: (520) 591-5500Cost: $15

Lions Club – Tucson BreakfastEvery Wednesday,7 to 8 a.m.Sheraton Hotel 5151 E. Grant RoadInformation: [email protected]

Marana Chamber of Commerce BreakfastsFirst Wednesday, 7:30 a.m.Taste of Texas 8310 N. Thornydale RoadRSVP: (520) 682-4314

Marana Chamber of Commerce MixerFourth Tuesday of each month5:30 to 7:30 p.m.Locations varyInformation: www.maranachamber.com

CALENDAR

Page 18: Inside Tucson Business 01/13/12

18 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

FINANCEYOUR MONEY

Investing in bonds: It’s amatter of fi nding balance

It’s a common misconception to think of bonds as “plain vanilla” investments that are appropriate only for certain types of people, such as fi nancially conservative retirees. In reality, bond investments may have the potential to add stability to a portfolio and help reduce overall invest-ment risk, regardless of your age or fi nancial outlook.

What is a bond?Bonds are investment securities issued

by corporations or governments to raise money for a particular purpose. Basically, bonds are the “IOUs” of the business world. Th ere are diff erent types of bond funds, each with varying levels of risk and return potential. Generally speaking, the higher the risk, the better the return potential. For example:

Government Bond Funds invest in bonds issued by the U.S. Treasury. Histori-cally, they have been among the strongest types of bond investments. However, they typically off er lower returns than other bonds.

Corporate Bond Funds invest in bonds issued by private companies. Th ey can range from “investment grade,” which are considered safer but lower return potential, to “below investment grade,” considered riskier but with higher return potential.

Know the risksBond funds are subject to several types

of investment risk, including:• Market risk. Like stock prices, bond

prices move up and down. However, such fl uctuations tend to be less severe in the bond market.

• Interest rate risk. When interest rates rise, bond prices may fall, and vice versa.

• Infl ation risk. If the return on a bond fund does not outpace the rising cost of living, the purchasing power of your investment could decline over time.

Managing riskDespite these risks, investors of all ages

may potentially benefi t from putting some money in bond funds. Because bond funds tend to respond to market infl uences diff er-ently than stock funds, they may help balance out the risks associated with stock investing.

In addition, lower-risk bond funds, such as government and investment-grade corporate bond funds, may help protect some of your money from losses during turbulent times.

Contact W. David Fay, partner in the Fay Miller Group at Morgan Stanley Smith Barney, at http://fa.smithbarney.com/thefaymillergroup or (502) 745-7069. Morgan Stanley Smith Barney LLC and its affi liates do 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 Jan. 11 Jan. 4 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG 0.07 0.07 0.00 0.04 0.97CDEX Inc CEXI.OB 0.05 0.03 0.02 0.02 0.06Providence Service Corp PRSC 14.80 14.27 0.53 8.35 18.00UniSource Energy Corp (Tucson Electric Power) UNS 36.34 36.61 -0.27 32.96 39.25UniSource Energy Corp (Tucson Electric Power) UNS 31.50 31.64 -0.14 22.76 33.55

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 9.63 9.45 0.18 8.45 18.47AMR Corp (American Airlines) AMR 0.36 0.24 0.12 0.20 8.79Augusta Resource Corp (Rosemont Mine) AZC 3.41 3.26 0.15 2.65 6.29Bank Of America Corp BAC 6.87 5.81 1.06 4.92 15.31Bank of Montreal (M&I Bank) BMO 57.11 56.70 0.41 51.83 66.64BBVA Compass BBV 8.02 8.55 -0.53 7.02 13.01Belo Corp (KMSB 11, KTTU 18) BLC 7.17 6.61 0.56 4.36 9.27Berkshire Hathaway (Geico, Long Cos) BRK-B* 78.00 76.80 1.20 65.35 87.65Best Buy Co Inc BBY 24.81 23.23 1.58 21.79 35.79BOK Financial Corp (Bank of Arizona) BOKF 58.59 55.55 3.04 43.77 59.59Bombardier Inc* (Bombardier Aerospace) BBDB 4.23 4.19 0.04 3.30 7.29CB Richard Ellis Group CBG 17.55 16.05 1.50 12.30 29.88Citigroup Inc C 31.27 28.17 3.10 21.40 51.50Comcast Corp CMCSA 25.42 24.73 0.69 19.19 27.16Community Health Sys (Northwest Med Cntrs) CYH 17.90 17.15 0.75 14.61 42.50Computer Sciences Corp CSC 24.58 24.49 0.09 22.80 56.61Convergys Corp CVG 12.78 12.58 0.20 8.49 15.00Costco Wholesale Corp COST 79.99 84.07 -4.08 69.54 88.68CenturyLink (Qwest Communications) CTL 36.61 37.09 -0.48 31.16 45.34Cvs/Caremark (CVS pharmacy) CVS 42.04 41.80 0.24 31.30 42.19Delta Air Lines DAL 8.61 8.01 0.60 6.41 12.81Dillard Department Stores DDS 45.53 43.03 2.50 37.42 61.08Dover Corp (Sargent Controls & Aerospace) DOV 59.05 58.17 0.88 43.64 70.15DR Horton Inc DHI 14.13 13.12 1.01 8.03 14.16Freeport-McMoRan (Phelps Dodge) FCX 41.65 39.83 1.82 28.85 60.99Granite Construction Inc GVA 25.98 24.45 1.53 16.92 29.68Home Depot Inc HD 43.46 42.74 0.72 28.13 43.60Honeywell Intl Inc HON 56.46 55.53 0.93 41.22 62.28IBM IBM 182.32 185.54 -3.22 148.25 194.90Iron Mountain IRM 31.58 31.15 0.43 24.28 35.79Intuit Inc INTU 55.18 52.30 2.88 39.87 56.46Journal Communications (KGUN 9, KMXZ) JRN 4.64 4.60 0.04 2.69 6.18JP Morgan Chase & Co JPM 36.66 34.95 1.71 27.85 48.36Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 29.72 26.89 2.83 25.73 38.40KB Home KBH 8.62 6.77 1.85 5.02 16.11Kohls Corp KSS 46.01 47.36 -1.35 42.14 57.39Kroger Co (Fry's Food Stores) KR 24.09 24.27 -0.18 21.14 25.85Lee Enterprises (Arizona Daily Star) LEE 0.72 0.73 -0.01 0.49 3.47Lennar Corporation LEN 22.25 20.21 2.04 12.14 22.53Lowe's Cos (Lowe's Home Improvement) LOW 26.53 26.47 0.06 18.07 27.45Loews Corp (Ventana Canyon Resort) L 38.34 38.00 0.34 32.90 45.31Macerich Co (Westcor, La Encantada) MAC 52.95 50.30 2.65 38.64 56.50Macy's Inc M 34.84 32.65 2.19 21.69 35.07Marriott Intl Inc MAR 33.02 30.47 2.55 25.49 42.78Meritage Homes Corp MTH 26.76 23.71 3.05 13.68 27.42Northern Trust Corp NTRS 42.26 40.61 1.65 33.20 56.14Northrop Grumman Corp NOC 58.51 58.63 -0.12 49.20 72.50Penney, J.C. JCP 34.56 34.91 -0.35 23.44 41.00Pulte Homes Inc (Pulte, Del Webb) PHM 7.70 6.54 1.16 3.29 8.69Raytheon Co (Raytheon Missile Systems) RTN 48.80 48.59 0.21 38.35 53.12Roche Holdings AG (Ventana Medical Systems) RHHBY 42.50 43.17 -0.67 34.02 45.65Safeway Inc SWY 20.79 21.05 -0.26 15.93 25.43Sanofi -Aventis SA SNY 35.84 36.50 -0.66 30.98 40.75Sears Holdings (Sears, Kmart, Customer Care) SHLD 32.90 30.80 2.10 28.89 94.79SkyWest Inc SKYW 13.34 12.98 0.36 10.47 17.28Southwest Airlines Co LUV 8.88 8.60 0.28 7.15 13.26Southwest Gas Corp SWX 41.06 42.18 -1.12 32.12 43.22Stantec Inc STN 26.50 27.78 -1.28 20.96 31.89Target Corp TGT 49.03 50.00 -0.97 45.28 56.44TeleTech Holdings Inc TTEC 15.97 15.98 -0.01 14.10 23.46Texas Instruments Inc TXN 30.73 29.57 1.16 24.34 36.71Time Warner Inc (AOL) TWX 37.36 36.49 0.87 27.62 38.62Ual Corp (United Airlines) UAUA 18.01 18.52 -0.51 15.51 27.72Union Pacifi c Corp UNP 111.98 108.78 3.20 77.73 112.52Apollo Group Inc (University of Phoenix) APOL 57.23 54.11 3.12 37.08 57.51US Airways Group Inc LCC 5.91 5.03 0.88 3.96 11.28US Bancorp (US Bank) USB 28.41 27.57 0.84 20.10 28.94Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 59.40 59.71 -0.31 48.31 61.06Walgreen Co WAG 34.01 32.83 1.18 30.34 47.11Wells Fargo & Co WFC 29.62 28.56 1.06 22.58 34.25Western Alliance Bancorp (Alliance Bank) WAL 7.35 6.67 0.68 4.44 8.45Zions Bancorp (National Bank of Arizona) ZION 18.50 17.14 1.36 13.18 25.60Walgreen Co WAG 35.50 34.19 1.31 21.39 40.69Wells Fargo & Co WFC 27.66 27.33 0.33 7.80 31.53Western Alliance Bancorp (Alliance Bank) WAL 5.65 4.82 0.83 2.99 9.22Zions Bancorp (National Bank of Arizona) ZION 18.67 18.05 0.62 5.90 20.97Data Source: Dow Jones Market Watch

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

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Page 19: Inside Tucson Business 01/13/12

JANUARY 13, 2012 19InsideTucsonBusiness.com

INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

Foreclosure-driven falling prices sparked a 13 percent increase in home sales last year, surpassing 12,000 closings for the fi rst time since 2007.

Th e year-end median price of $120,000 was $19,500 lower than the 2010 level. Average home prices ended 2011 at $161,471, some $25,000 less than in December 2010. Both measurements are on par with prices last seen in 2000.

As a result of declining prices, there were 12,791 sales in 2011. In 2010, there were 11,295 homes sold; compared to 11,570 homes in 2009; 10,616 homes in 2008; and 12,881 homes in 2007. In recent years, home sales peaked in 2005 at 18,003 units.

Th e data is according to the Tucson Association of Realtors Multiple Listing Service (TARMLS).

Total sales volume also has declined steadily in recent years, due mostly to distressed sales. In 2008, $2.56 billion in homes were sold in the Tucson metropoli-tan area. Th at dropped to $2.33 billion in 2009; to $2.15 billion in 2010; and to $2.1 billion last year.

Th e recent high in total sales volume was $4.6 billion in 2005.

Active listings declined steadily through-out 2011, beginning in January with 7,147 homes. By December, listings had dropped 31 percent to 4,911. Th e most listings were for homes priced from $200,000 to $249,999, at 540 units. In the $1 million-plus category, there were 154 listings.

Th e last time listings fell below 5,000 was in September 2005 at 4,804 listings, according to the realtors report.

Jan. 27 housing forumWith the housing market at or near the

bottom, how bright is the future? Bright Future Business Consultants will peer ahead on January 27 at its 15th Annual Housing Market Review, Analysis & Forecast.

Presented by Bright Future’s John Strobeck, the forum features: R. L. Brown, Arizona builder consultant; Marshall Vest, economist at the University of Arizona; and

Jim Marian, partner in Chapman Lindsey Commercial Real Estate.

Th e program includes an overview of economic conditions in the housing and land markets, the market’s decline, and foreclosures. Strobeck will discuss the current and future of local housing.

Th e forecast is at Th e Westin La Paloma, 3800 E. Sunrise Drive from 2 p.m. to 4:30 p.m. Th e cost is $25 per person and a networking session with cash bar will follow the program. For more information or reservations, contact Strobeck at [email protected] or (520) 751-0676.

Record Picor donationsAlthough 2011 was a weak year for

commercial real estate, the Picor Charitable Foundation (PCF) raised a record-high $45,545 to help 35 non-profi ts that serve disadvantaged youths. Compared to 2010, donations increased a remarkable 35 percent.

Grants from $500 to $3,000 were awarded to the charities to fund such needs as shoes, clothing, eyeglasses, formula, books, “support and opportunity for Tucson’s most vulnerable children,” said

Foreclosure-driven falling home prices spark highest sales since 2007

THE PULSE: TUCSON REAL ESTATE

1/2/2012 12/26/2011

Median Price $136,675 $120,000Active Listings 5,523 5,512New Listings 453 192Pending Sales 308 254Homes Closed 96 179Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 4.00% 4.25%APR 4.00% 4.25%APR 6.18% 6.88% 4.00%

15 YEAR 3.50% 3.81%APR 3.50% 3.81% APR 5.94% 6.75% 3.38%

5/1 ARM 3.00% 3.38%APR 3.00% 3.38% 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, 1610 E. River Road, Suite-118 Tucson, Arizona 85718 • 520-324-000MB #0115327. Rates are subject to change without notice based upon market conditions.

1/11/2012

Since 2006, foreclosures have driven down home prices by some 44 percent.

PCF Chair Tom Nieman, a principal in Picor Commercial Real Estate Services.

In addition, Picor’s annual pancake breakfast served a record 2,400 people, many from community agencies. Since being formed in 1994, PCF has awarded over $533,000 to local charities.

PCF is employee-run, with all proceeds distributed to charitable organizations. Overhead costs are covered internally by Picor’s corporate administration.

2012 BOMA offi cersBOMA of Greater Tucson (Building

Owners and Managers Association) has named Gay Jarvis, Anthem Equity Group, as its 2012 president. She will serve with president-elect Dana Elcess of Picor Commercial Real Estate Services; and secretary/treasurer Andrea Krug of CBRE.

BOMA’s 2012 principal directors are: Katie Castillo (Ashland Group); Diane O’Connor (O’Connor Realty Services); Frank Daversa (CBRE); and Mary Westmo-reland (Niles Investment Corp.).

Th e associate directors are: Eric Albright (ACE Asphalt); Brandon

Bosshardt (Burns Pest Control); and Agnes Sheldon (Distinctive Carpets). Mona Deane of Picor is immediate past president.

Regarding achievement for 2011, Elcess was named Principal Member of the Year. Roxanne Badilla (Pinnacle Restoration) was named Associate Member of the Year.

Th e Gospel Rescue Mission was the recipient of BOMA’s annual holiday drive, with over $1,500 in toys and gift cards for needy families.

8 Emeritus realtorsTh e National Association of Realtors has

honored eight local realtors with its Emeritus 2011 award that recognizes realtors who have been national members for at least 40 years.

Th e honorees are: Patti Borden (Long Realty Company); Quentin Bryson (Quentin Bryson Co.); Jim Chumbler (Chumbler’s Realty); Alan Friedman (American Property Exchange Tucson); George Griswold (Griswold Realty); Richard Huff (Richard H. Huff Realty) Chuck Pettis of (Charles M. Pettis); and Dan Swango (Swango Realty & Appraisal).

Th ey join existing Emeritus members Dan Santa Maria (Santa Maria Realty) and Kip Longan (Long Realty). Of the 1.1 million realtors in the nation, only 4,828 are Emeritus members.

Sales and leases • Becknell Industrial purchased a

100,000-square-foot, rail-served distribu-tion/manufacturing facility for $5.25 million at 1172 W. Lawrence Street in Casa Grande from Cal Cap Advisors of Califor-nia. Th e transaction was handled by Bob Buckley, Steve Lindley and Tracy Cartledge of Cassidy Turley BRE Commercial.

• Catalina Compadres LLC leased a 2,500-square-foot building at 4352 E. Speedway from Webb Family Partnership LP, represented by Aaron LaPrise and Brian Harpel with Th e Harpel Company. Alan Tanner, CBRE, represented the tenant.

• New American Mortgage leased 2,477 square feet at 4566 N. 1st Ave. from Michale Haubert, represented by Chuck Corriere and Clint Nelson of Keller Williams Southern Arizona. Th e tenant by Bruce Suppes of CBRE.

• It’s A Fun World Center LLC leased 2,476 square feet at 5922 E. 22nd Street from Yvonne Murillo. Robert Nolan, Oxford Realty Advisors, handled the transaction.

• Redrock Retail 52 LLC leased a 2,400-square-foot convenience store at 16265 E. Peak Lane at Picacho Peak from ROM-HOC LLC. Chuck Corriere of Keller Williams Southern Arizona handled the transaction.

E-mail news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.

Roge

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hoto

Page 20: Inside Tucson Business 01/13/12

20 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

A few years back there was a time when a bunch of other dads and I on this Friday night would be trying to fi nd the concession stand selling roasted corn at Fort Lowell Park, 2900 N. Craycroft Road.

It was part of the opening festivities for the annual youth soccer tournament then called the Fort Lowell Shootout and now called the Tucson Association of Realtors Shootout. Either way, the tournament has been going on for 23 years.

Weather wasn’t always kind on opening night of the shootout and the warm roasted corn, with steam coming off it, was particu-larly sought after. But that was just us dads. Th e kids were having the times of their lives in an Olympics-style opening ceremonies with a parade of participating team members.

Th e shootout, which runs through Sunday, has grown. Th is year there are 327 teams coming from across Arizona, Califor-nia, New Mexico and Texas to play at 15 venues throughout the city starting at 7:45 a.m. Saturday. It’s estimated the event brings in $3.1 million to the local economy.

Also this weekend, the 2012 Cactus Classic Invitational volleyball tournament takes place at the Tucson Convention Center, 260 S. Church Ave. More than 100 club volleyball teams from Arizona, California, Nevada, New Mexico and Sonora, Mexico will compete Saturday through Monday. Th is is the 17th annual Cactus Classic, which is offi cially sanctioned by USA Volleyball. In terms of economic impact, it’s no slouch either, bringing in an $1.2 million to the community.

As if these two weren’t enough, if you’re one of the lucky people who has Monday off from work for Martin Luther King Day, you can cap off the three-day weekend with a new annual event — I hope. Th e Casino Del Sol College All-Star Game will be played at 6 p.m. Monday at Kino Stadium, 2500 E. Ajo Way. If Tucson does this right and supports it, this game could rival the East-West Shrine Game.

It also comes at a good time, as football withdrawal is about to set in with the college season now over and the NFL into its playoff s.

More than 50 scouts from NFL teams are expected be at Kino Stadium and among the 90 or so college players on the rosters are LSU quarterback Jarrett Lee as well as quarterbacks G.J. Kinne from Tulsa and Marshall Lobbestael from Washing-ton State, and running backs Rodney Stewart from Colorado and Michael Shaw from Michigan. Coaches will be led by former Fresno State Head Coach Pat Hill and former Ole Miss Head Coach Houston Nutt.

More, including ticket information, about all three of these events is online at:

• Tucson Association of Realtors Shootout: www.fortlow-ellshootout.com/

• Cactus Classic Invitational: www.clubcactusvolleyball.com/cactusclassic/index.htm

• Casino Del Sol College All-Star Game: www.casinodelso-lallstargame.com/

Next month we’ll have the gem and mineral shows, the Tucson Rodeo and the Accenture Match Play Championship. For me, tracking down an ear of roasted corn is just the beginning of the greatest time of the year to be in Tucson.

Contact David Hatfi eld at dhatfi [email protected]

or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Th is could be the best weekend of the year

EDITORIAL

Will the Legislature stick to business?State lawmakers could make us liars but judging

from the fi rst few days this week, there are signs this year’s legislative session isn’t setting up to be a repeat of the kind of headline-grabbing material that was fodder for national stories mocking Arizona.

Th at would be a welcome relief.But then again, one of the most signifi cant take-

aways from Gov. Jan Brewer’s State of the State address was her request to buy back the Capitol and other buildings that were sold off by the state in 2010 as part of a lease-buyback plan to balance the state’s budget.

Brewer proclaimed Arizona is on the mend and with budget surpluses this fi scal year and next now projected to be between $1.3 billion and $1.5 billion. She said she wants lawmakers to come up with a proposal to buy back the state buildings by Feb. 14, Arizona’s centennial statehood day.

Another contributing factor to what we hope will be a more focused session is that 2012 is an election year, brings with it an added uncertainty for some lawmakers who will fi nd themselves running for re-election in districts with boundaries that have changed from two years ago as a result of the 2010 Census.

Playing into that was last November’s recall of the formerly nearly omnipotent Senate President Russell Pearce, R-Mesa, with his preoccupation of legislation targeting illegal immigration while literally thumbing his nose at business leaders who dared challenge that agenda.

A potentially interesting outcome from that is that Pearce’s replacement as Senate president is Steve Pierce, R-Prescott, and that, along with Rep. Andy Tobin, R-Paulden, replacing Kirk Adams, R-Mesa, who resigned as Speaker of the House at the end of the last session to run for Congress, means the top offi ces of each legislative body is now led by a non-Phoenician.

Th ere have been a couple of other changes on the

personnel front that could help lower the volume. Th e seemingly always unavoidable for comment Sen. Kyrsten Sinema, D-Phoenix, has resigned to seek a Congressional seat. And Sen. Scott Bundgaard, R-Peoria, resigned because, as he said, a Senate Ethics Committee was going to recommend his expulsion stemming from an alterca-tion in February on a Phoenix freeway. Replacements for Sinema and Bundgaard will be appointed by the Maricopa County Board of Supervisors.

Even with the initial promise of a more civil session, everyone of us with a stake in the future of Arizona needs to be vigilant about legislation. Some ideas already being fl oated:

• More incentives for economic development, specifically incentives that would encourage smaller and medium-sized business to add jobs. That could address a matter that was overlooked in last session’s incentive package.

• Trying to extend the temporary three-year state sales tax that’s due to expire in 2013. Brewer herself, one of the biggest proponents of the original tax, is saying this is a non-starter.

• School tax credits may be expanded. Of course the idea is to funnel more money into private schools. It’s bad public policy and sooner or later, either the courts or lawmakers will recognize that.

• Putting a cap on property values so they cannot be increased by more than 5 percent annually. Considering the antiquated way Arizona property valuations are calculated this could hit just when values hit their lowest this year and next.

Undoubtedly, there will also be measures resurrected to address illegal immigration and relaxing gun restrictions but it’s questionable just how far these will get in a year when people are more concerned about being a part of an economic recovery. We hope legislators will see that.

Page 21: Inside Tucson Business 01/13/12

JANUARY 13, 2012 21InsideTucsonBusiness.com

WAKE UP, TUCSON

Welcome to Marana, the city of tomorrowTh ere is a municipality at the north-

west gateway to our region that gets it. Marana has been the mild rebel of the Pima County family and the dividends are paying off . Th ere are good num-ber of Tucson business owners look-ing to Marana as the escape valve.

Here are a few reasons why:1. Strategic Plan. In 2009, Marana ad-

opted a comprehensive plan covering fi ve key areas: Commerce, Community, Prog-ress/Innovation, Heritage and Recreation. Not only have the subsequent actions taken by the town refl ected the plan, offi cials have done a good job telling everyone the plan exists and they will stand by it. We assume other municipalities in our region have such plans; it’s just that the public doesn’t know about them. In Marana, no elaborate “imagining” was necessary.

2. No TREO. No MTCVB. A couple of years ago, Marana decided it would keep its $50,000 a year instead of sending it to the black hole that is the Tucson Regional Economic Opportunities (TREO). Despite TREO taking credit for the expansion of Sargent Controls in Marana, it was the town that pushed it forward. Josh Wright, former economic development director of Marana (and now town manager of Wickenburg), was given the Economic Developer of the

Year award by the Arizona Associa-tion of Economic Development. We believe he is the fi rst South-ern Arizonan to receive this award in decades. Ma-rana’s reluctance to join the Met-ropolitan Tucson Convention and Visitors Bureau (MTCVB) also proved fruitful, as a performance audit by Pima County last year showed. Actu-ally, Marana and neighboring Oro Valley have devel-oped a growing strategic part-

nership that may show the may to a new regional marketing approach.

3. Wastewater freedom. On Jan. 3, after wrangling with Pima County’s slew of attorneys and having the state Legislature help with a new law, Marana rightfully

took possession of its own wastewater plant. Th is is an incredibly important step in getting away from the dirty games that Pima County can play. Marana can now tell business owners, except in the restaurant business, they NEVER have to go downtown to Pima County before developing a project. No more having the county shoot down a project with the excuse of “we can’t get wastewater to you.”

4. Development services. Talk to anyone who has tried to work with the City of Tucson’s Development Services and also done a project in Marana. It’s like the diff erence between staying at Caesars Palace in Las Vegas or a nickel-and-dime joint anywhere. Marana uses a concierge approach matching one staff person with one client. Compensation for Marana’s Development Services staff is a base salary plus a bonus based on survey responses by clients. How’s that for progressive?

5. Inland port. If you haven’t noticed, Marana is creeping away from Pima County into Pinal County. Combine prime freeway access and being just a half-hour away from Interstate 8, with Pinal Airpark and the development of a Union Pacifi c rail switch yard at Red Rock, and the vaunted “Nuevo Puerto” concept talked about for Tucson is on track, just to the northwest.

Pinal County’s government understands this road to economic vibrancy much bet-ter than the folks at 131 W. Congress St.

6. Taking care of your town. Marana takes damn good care of its taxpayers’ as-sets. Just drive the streets: no potholes, no blight and you don’t see weeds “as high as an elephant’s eye.” Th e pride and prioriti-zation is evident. Th e ratio of public safety offi cers to residents is also high in Marana.

Th ere are positive stories to tell about Oro Valley and Sahuarita as well. But right now, Marana is leading the way. If you have a business that can move, go talk to Marana. Even if you don’t live in Marana, be thankful that it’s there.

Marana is the leading example of municipal independence that is a counter-balance to the political machine in Tucson and Pima County governments where they are more worried about ensuring neighbor-hood payoff s than the safety, well-being and economic success of their citizens.

Contact Joe Higgins and Chris DeSimone at [email protected]. Th ey host “Wake Up Tucson,” 6-8 a.m. week-days on Th e Voice KVOI 1030-AM. Th eir blog is at www.TucsonChoices.com.

OPINION

CHRIS DESIMONE

JOE HIGGINS

Tucson deserves a vibrant downtown convention-hospitality districtLet’s make 2012 the breakthrough year for

the commencement of a robust redevelop-ment of Tucson’s downtown. We deserve it.

Cities across the country have found ways to build attractive and functional ur-ban cores. Tucson can, too. Th ere are several obvious reasons why a vibrant downtown is critical to our city at this point in our history.

Sense of placeMetro areas the size of Tucson need an

urban area that creates the city’s “sense of place.” An urban core with a quality mix of residences, retail, offi ces, arts, culture and history becomes a city’s signature. It becomes a destination for residents and visitors alike. It’s the place to go for din-ner at a quality restaurant, followed by entertainment, a night on the town and then walking two blocks to go home.

Th e opposite is what none of us want: abandoned buildings, fl ight to the outer suburbs and urban decay. We all know cities that have both kinds of downtown areas. I think Tucson is too smart to make the wrong decision about the future of its downtown.

Urban conventionsWe need an energetic urban convention

and hospitality district to attract convention

business. Cities the size of Tucson should be competing for lots of conventions, but we won’t win many unless we improve our aging Tucson Convention Center and sur-round it with complementary convention facilities and appropriate lodging, restaurant and entertain-ment off erings.

Th ere are many cities with the ideal blend of convention components, but few off er the blue skies and warm tempera-tures the major-ity of the coun-try seeks out nine months of the year.

Having moved to Tucson from Las Vegas, I can tell you there are few feelings as good as seeing hundreds of thousands of out-of-state consumers fl ocking to your city to spend their money and pay local taxes.

Grow verticallyCentral city areas grow vertically, becom-

ing one of the best antidotes to horizontal urban sprawl. Beautiful cities have beautiful

urban skylines. As density increases in well-planned urban cores, the pressure to expand outward from the central area decreases.

Without a reason to consider living in the downtown area, residents will look to the horizon.Transforming our downtown area from what it is now to what we want it to be can be done, but it will require vision to trump politics. Yes, Rio Nuevo was a bomb. Money and opportu-nity were lost due to a lack of leadership and fi nancial oversight of the funds. Small groups with narrow agendas were able to derail the master plan, resulting in project stagnation and embarrassment over our city’s inability to function.

Th e acrimony and fallout over Rio Nuevo must be settled. Th e city and its taxpayers deserve to have the dysfunction of the past replaced by vision and resolve.Th ere are a number of state-sponsored tax abatement strategies that can be used to entice developers to risk their own capital and participate in the downtown master plan. Th e incentive program most often referenced is the Government Property Lease Excise Tax (GPLET).

Th e City of Tucson must embrace all reasonable strategies to spur a coordi-nated downtown redevelopment eff ort.

Citizens of Tucson should focus more on what can be done than the personalities behind the projects. We have so much to gain and too much to lose if we don’t get our downtown act together – and soon.

Th e Tucson Metro Chamber calls on the warring Rio Nuevo factions to settle their diff erences and focus their ener-gies on the future. Yes, you can do it.

Th e chamber commends Tucson Mayor Jonathan Rothschild and council members Richard Fimbres, Steve Kozachik, Regina Romero and Shirley Scott for their Jan. 4 votes at the city council to explore the adop-tion of state-approved incentives. Th is is a very positive step in the right direction.

Th e Tucson Metro Chamber expects the approval process will be both thorough and expeditious. Once the incentive tools are ad-opted, the boundary of the central business district drawn and your application criteria confi rmed, please serve as a cheerleader and facilitator for the process you create.

Contact Mike Varney, president and

CEO of the Tucson Metro Chamber, at mvar-

[email protected] or (520) 792-2250 ext.

133. Varney’s Advocating for Business column

will appear monthly in Inside Tucson Business.

ADVOCATING FOR BUSINESS

MIKE VARNEY

Page 22: Inside Tucson Business 01/13/12

22 JANUARY 13, 2012 INSIDE TUCSON BUSINESS

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

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GUEST OPINION

State legislators need to refund road repair money they took Highway User Revenue Funds (HURF)

are the primary source of funds available to Arizona cities and counties to be used for the repair and maintenance of our roadways. Th e state charges a variety of transportation-related fees and collects a tax on motor fuels, keeps some of the revenue and, using a formula, distrib-utes the remaining dollars to localities.

By statute, cities and counties are precluded from collecting similar fees and taxes. We are dependent on the good faith of the state to keep its part of the bargain and return to us the dollars we are due.

At least, that’s the script. Th e actors in the Legislature aren’t reading their lines.

Th e formula is supposed to be that the state keeps 50.3 percent of the funds collected, cities receive 27.5 percent and counties are to receive 19 percent. Th e remaining 3 percent is to be distributed to cities with populations exceeding 300,000.

Since the 2009 election, the state has swept $373 million in HURF money and used to to pay for other state budget line items.

Th ese past two years aren’t the anomaly. Th e fact is that every year for the past 12 fi scal years, the state has swept HURF money into its own coff ers, to the tune of almost $1.5 billion of your tax dollars.

Th ose sweeps took place under the leadership of both Republicans and Democrats. Perhaps you’ve noticed the impact on the quality of the roads on which you’re driving in both Tuc-

son and Pima County.In 2007, Pima County received $44.5

million in HURF money. In 2010 that fi gure

had dropped to $38 million. Th at same comparison for the City of Tucson is just under $50 million in 2007 and right at $43 million in 2010. Th is fi scal year, 2011-2012, the city took another $5 million hit and the county took a $4.3 million hit.

Both the city and county an-ticipate the trend will continue into the 2012-2013 fi scal year.

Th e condition of our roadways is a public safety issue; an issue that im-pacts tourism and inhibits our abil-ity to recruit and attract private sec-tor investment into the region.

We believe that every legislator who rep-resents any portion of Pima County, includ-ing the city of Tucson, should actively resist any further reductions in HURF allocations to this region. In fact, the state should re-fund the dollars that have been taken from Pima County and City of Tucson taxpayers so our elected governing bodies can be about the work of repairing your roads.

During last year’s legislative session, this region saw a fl urry of bills that were undeniably aimed at both Pima County and the City of Tucson. Many of those

STEVE KOZACHIK

SHARON BRONSON

bills were sponsored by members of the Southern Arizona legislative delega-tion. We fi nd that a curiously odd way to represent their own constituents.

We are committed to applying every penny returned to the city and the county exclusively for road repair and maintenance - not a dime will go for administrative fees. We are com-mitted to working with our respective governing bodies toward that end.

Without the willing consent by the state to refund HURF dollars, we are also committed to fi ghting for what belongs to you through whatever means it takes.

We believe that all of the com-munities in our region — including Marana, Oro Valley, South Tucson and Sahuarita — could use more money to maintain their roads.Contact Supervisor Sharon Bronson, a Dem-

ocrat who represents Pima County District

3, at [email protected] or (520) 740-8051.

Contact City Councilman Steve Kozachik, a

Republican who represents Tucson Ward 6,

at [email protected] or (520) 791-4601.

Yes 15%No 64%

Too early to say 21%

InsideT

Is the houthe wood

other state budget line items. In 2007, Pima County received $44.5million in HURF money. In 2010 that fi gure

undeniably aimedand the City of Tu

PUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

STAFF WRITERROGER [email protected]

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LIST COORDINATORJEANNE [email protected]

ART DIRECTORANDREW [email protected]

ADVERTISING DIRECTORJILL A’[email protected]

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CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

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JANUARY 13, 2012 23InsideTucsonBusiness.com

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