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Homeowners opting to remodel Competitive pricing boosts activity Page 19 A lack of laborers Migrant workers pull up roots due to weak economy Page 7 Introducing Brent DeRaad Tucson’s new tourism chief wants to draw attention Page 3 Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • MAY 25, 2012 • VOL. 21, NO. 52 • $1 SUPPLY CHAIN OPPORTUNITIES PAGE 5 Regional logistics hub envisioned from Marana to Sinaloa ers icing rs pull ng aad wants on PAGE 21 PAGE 21 Roger Yohem photo Good news at the pump this Memorial Day Inside Tucson Business is Memorial Day weekend, mo- torists in most parts of the U.S. will find gasoline plentiful and in most cases at the lowest price it has been in two years. at’s not quite the case in Arizona, where prices have been falling but sup- plies have tightened due to issues that have temporarily shut down refineries along the West Coast. is week, the average price for reg- ular in Tucson was $3.63½ per gallon, down 2½ cents per gallon over the past week, according to AAA Arizona’s Fuel Gauge survey. A year ago the average was $3.60 per gallon. AAA is forecasting the national aver- age this weekend will be $3.66 per gallon, which is down 26 cents a gallon since the beginning of April. With the price of crude oil falling be- low $90 a barrel Wednesday, some ener- gy analysts believe it looks as if the price of gas for the rest of the summer could be coming down even more. Energy analysts say falling prices at the start of the summer driving sea- son is a positive sign for consumers’ pocketbooks. Gasoline is a staple that most Americans purchase – the average household will spend about $3,000 this year at current prices – so any reduction in price gives them additional money to spend on discretionary items. e price reduction also helps consumers psy- chologically: as the price approached $4 a gallon on a national basis they felt increasingly squeezed. In Arizona, Tucson continues to have the lowest average price for gas while Flagstaff has the highest, averag- ing $3.90 per gallon, unchanged over the past week. e statewide average price is $3.77 per gallon, down from $3.79½ a week ago. In San Diego this week, AAA said the average price was $4.32½ per gallon, down about a penny gallon in the last week. Material from the Christian Science Monitor was used in this report.

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Page 1: Inside Tucson Business 05/25/12

Homeowners opting to remodelCompetitive pricing boosts activity

Page 19

A lack of laborersMigrant workers pullup roots due to weak economy

Page 7

Introducing Brent DeRaadTucson’s new tourism chief wants to draw attention

Page 3

Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • MAY 25, 2012 • VOL. 21, NO. 52 • $1

SUPPLY CHAINOPPORTUNITIES

PAGE 5

Regional logistics hub envisioned from

Marana to Sinaloa

ers

icing

rs pull

ng aad

wantson

PAGE 21PAGE 21

Roge

r Yoh

em p

hoto

Good news at the pump this Memorial DayInside Tucson Business

Th is Memorial Day weekend, mo-torists in most parts of the U.S. will fi nd gasoline plentiful and in most cases at the lowest price it has been in two years. Th at’s not quite the case in Arizona, where prices have been falling but sup-plies have tightened due to issues that have temporarily shut down refi neries along the West Coast.

Th is week, the average price for reg-ular in Tucson was $3.63½ per gallon,

down 2½ cents per gallon over the past week, according to AAA Arizona’s Fuel Gauge survey. A year ago the average was $3.60 per gallon.

AAA is forecasting the national aver-age this weekend will be $3.66 per gallon, which is down 26 cents a gallon since the beginning of April.

With the price of crude oil falling be-low $90 a barrel Wednesday, some ener-gy analysts believe it looks as if the price of gas for the rest of the summer could be coming down even more.

Energy analysts say falling prices at the start of the summer driving sea-son is a positive sign for consumers’ pocketbooks. Gasoline is a staple that most Americans purchase – the average household will spend about $3,000 this year at current prices – so any reduction in price gives them additional money to spend on discretionary items. Th e price reduction also helps consumers psy-chologically: as the price approached $4 a gallon on a national basis they felt increasingly squeezed.

In Arizona, Tucson continues to have the lowest average price for gas while Flagstaff has the highest, averag-ing $3.90 per gallon, unchanged over the past week. Th e statewide average price is $3.77 per gallon, down from $3.79½ a week ago. In San Diego this week, AAA said the average price was $4.32½ per gallon, down about a penny gallon in the last week.

Material from the Christian Science

Monitor was used in this report.

Page 2: Inside Tucson Business 05/25/12

2 MAY 25, 2012 INSIDE TUCSON BUSINESS

Available this year at a new SPECIAL LOW PRICE.Was $225 Now $149

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Welcome to the NEW Electronic ITB BOOK OF LISTS

Page 3: Inside Tucson Business 05/25/12

MAY 25, 2012 3InsideTucsonBusiness.com

CONTACT US

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

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CARTOONISTWES HARGIS

NEWSMEET BRENT DeRAAD

New tourism chief wants others to get as excited about Tucson as he isBy Patrick McNamaraInside Tucson Business

With more than a decade of tourism marketing experience behind him, Brent DeRaad is still taken by the uniqueness of Tucson and Southern Arizona and wants to step up marketing so that others see it, too.

“Really what I’m excited about is the Sonoran Desert, it’s the most beautiful desert I’ve encoun-tered,” DeRaad said. “We defi nitely need to grow our budget to enhance that ad-venture recreation.”

He said the ideal would be to have mar-keting campaigns in as many as 10 major markets, including New York and Los An-geles.

In addition to the outdoor recreation activities available in Southern Arizona, DeRaad says he wants to capitalize on the popularity of attractions such as the Titan Missile Museum, the Pima Air and Space Museum and Old Tucson Studios.

DeRaad arrived in April as the Metro-politan Tucson Convention and Visitors Bureau’s (MTCVB) new president and CEO, taking over from Jonathan Walker, who retired after nearly 19 years.

“I had a great run in Scottsdale,” DeR-aad said, who was executive vice president of the Scottsdale Convention and Visitors Bureau from 2001 until taking the Tucson job.

Originally from Iowa, DeRaad, 45, moved to the Phoenix area in 1986 to at-tend Arizona State University. He gradu-ated from there with a journalism degree

and went on to earn a master’s in mass communication.

He worked for the Fiesta Bowl, City of Scottsdale and the Greater Phoenix Con-vention and Visitors Bureau before taking the job in Scottsdale.

He and his wife have two teenage boys. DeRaad said the Scottsdale bureau was

able to increase the bed tax rate and alloca-tion to the bureau.

Th e City of Tucson and Pima County fund the MTCVB through bed taxes. Fund-ing tourism-promotion organizations through local bed taxes is common practice and has proven successful, DeRaad said.

“What we found in Scottsdale was that for every $1 of bed-tax money spent, $3 in sales taxes were brought in,” he said.

Unlike Scottsdale, however, contribu-tions from local governments in Tucson, which make up 95 percent of the MTCVB budget, have decreased in recent years.

In 2007, DeRaad said Scottsdale and

Tucson were on equal footing in terms of budget, with both receiving about $10 mil-lion. Now, going into the 2013 fi scal year in July, Scottsdale is looking at a budget of $11.5 million while Tucson’s is going to be about $6.3 million.

“Th at defi nitely puts Tucson at a com-petitive disadvantage,” DeRaad said.

Another disadvantage DeRaad has had to contend with early in his tenure is the closure of the downtown Hotel Arizona, adjacent to the Tucson Convention Center, and the only downtown hotel with more than about 50 rooms.

“Th e biggest challenge for a convention center is to have a hotel in walking dis-tance,” DeRaad said. “Our ability to com-pete for that convention business is limited at best.”

DeRaad also looks to try to mend fenc-es with Pima County following a perfor-mance audit it had commissioned last year that took MTCVB leadership to task for a lack of transparency, accountability and a complacent attitude toward leaders of the governments.

DeRaad said concern among local of-fi cials was understandable and that he would work to build trust.

“One of my top priorities was to meet with political leadership,” DeRaad said. “When you have a county and city gov-ernment investing millions of dollars in an organization, they certainly have the right to see what they’re getting for their investment.”

Th at investment is important to the re-gion as whole too, with more than 20,000 people working in related industries and $2 billion of tourism-related spending pouring into Southern Arizona annually.

Contact reporter Patrick McNamara

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

BIZ FACTS

Skål International United States of America and Gray Line of Tucson are sponsoring a welcome reception for Brent DeRaad, new president and CEO of the Metropolitan Tucson Convention and Visistors Bureau.

Wednesday (May 30)5:30 - 7:30 p.m.Marriott University Park, 880 E. Second St. Cost is $10RSVP by Monday (May 28) at [email protected] DeRaad

Public Notices 6Lists 8,9Profile 10 Inside Media 11 Meals and Entertainment 12Arts and Culture 12Briefs 14

People in Action 15 Finance 18Real Estate &Construction 19Biz Buzz 20Editorial 20Classifieds 23

EDITION INDEX

Lifestyle magazine subsidiaryfi les Chapter 11 bankruptcy

A real estate subsidiary of the parent company of Tucson Lifestyle magazine has fi led for Chapter 11 bankruptcy reorgani-zation as it seeks to force a restructuring of its loan on the eastside shopping and offi ce complex that houses the magazine’s offi ces.

Conley Holdings LLC, headed by president and CEO James E. Conley Jr., made the fi ling after defaulting on a $2.7 million loan and being unsuccessful in negotiating a restructuring for the Plaza Santa Fe Square, a 44,570 square-foot center on the southwest corner of Tanque Verde and Sabino Canyon roads.

Kasey Nye, attorney for Conley in the bankruptcy fi ling, said the bankruptcy doesn’t directly involve the magazine, which is a separate subsidiary of Conley Publishing Group Ltd. Nye said he anticipates a speedy restructuring resolution because Conley has more than $1 million worth of equity in the center.

In the court fi lings, the company said the bankruptcy was “a result of the combination of the general market downturn, the construction at the Sabino Canyon and Tanque Verde intersection, and a very aggressive loan amortization schedule.”

As of April 11, the loan on Sante Fe Square had an outstanding principal balance of just under $1.6 million.

An explanatory statement from Penny Kottke, chief fi nancial offi cer for Conley Publishing, included in the bankruptcy fi ling said her company did not make its November 2011 payment and began seeking to restructure the loan. After initially being rejected by note holder Columbian Mutual Life Insruance Co., another note holder said gave assurances that it would restructure the loan so Conley brought it current as of the end of 2011.

But Columbian Mutual never agreed to meet with Conley, so his company stopped making payments again in January and continued to seek a meeting to restructure the loan. On April 20, after not communicating at all with Conley since January, Columbian Mutual initiated foreclosure procedings. Conley responded with a check for $99,300.54, which it said included unpaid principal and late fees but it was rejected.

Page 4: Inside Tucson Business 05/25/12

4 MAY 25, 2012 INSIDE TUCSON BUSINESS

NEWS

High-school students attend two-day ‘Brain Academy’

By Patrick McNamaraInside Tucson Business

Where will the next generation of neu-rosurgeons come from?

Doctors at Carondelet Neurological In-stitute want to promote interest in the fi eld among Tucson’s high school students.

“We hope to give students an oppor-tunity to explore a career path that really needs the best and brightest,” said Dr. Eric Sipos, a neurosurgeon with Carondelet Neurological Institute partner organiza-tion Western Neurosurgery Ltd.

To that end, Carondelet and Western Neurosurgery created the Brain Academy, a two-day symposium where high-school juniors get to meet with medical profes-sionals and learn the basics of the neuro-logical sciences in hospital and laboratory settings.

On May 18 and 19, 21 students from 12 Tucson-area high schools participated in the 2012 Brain Academy. Th ey were select-ed from a group of 60 applicants.

Students spent the fi rst day of Brain Academy at the Carondelet Neurologic Institute at St. Joseph’s Hospital where they met with doctors and therapists who described the nature of work in the neuro-logical sciences.

Th erapists described to students diff er-ent types of brain injuries and how they

can manifest in patients. Students also spent time in a laboratory

where they were able to examine, and even tough, human cadaver brains.

After donning sterile, white coveralls — bunny suits — the students were given a tour St. Joseph’s technologically advanced BrainSuite iCT operating rooms.

Sliding doors divide the rooms where a CT scanner on tracks can slide from one side to the other, maximizing the number of patients that could be served.

In the BrainSuite, students learned how the CT scanner can produce real-time im-ages during surgeries, which can assist doctors in better treating patients.

Brain and spinal column images are displayed on large screens where the sur-geons view internal images of patients tak-en moments earlier.

Th e students also were able to handle various surgical tools and instruments used in the operating room.

On the second day of Brain Academy students went to the Carondelet Neuro-logical Institute’s regional neurological sciences conference where hundreds of experts attended presentations covering the latest advances in treatment for many brain disorders.

Sipos said Brain Academy gave Caro-ndelet an opportunity to give back to the Tucson community.

“Th is is a way for Carondelet to reach out to the community, which has been so supportive,” he said.

Th e academy also can help to stimu-late the interest of the next generation of neurological scientists. More importantly, Sipos said, the academy can spark an inter-est in young people for the right reasons.

Sipos said many people seek to enter medicine because they have a parent in the fi eld or because the lure of a high-pay-ing job, not out of a genuine desire to help people.

“Th ese are all reasons not to go into medicine,” Sipos said. “If you choose to go into my fi eld for those reasons, I don’t want you.”

Th is was the second year of the Caro-ndelet Brain Academy. Eligible students were required to have a 3.0 grade-point average and provide two letters of recom-mendations.

Carondelet also awarded four of the stu-dents a $1,250 scholarship each to use for their college educations. Th ose students were selected based on participation in the acad-emy and on the quality of essays they submit-ted as part of their academy application.

Contact reporter Patrick McNamara

at [email protected] or (520) 295-

4259.

Students who attended the 2012 Carondelet Neurological Institute Brain Academy were:Rachel Dick, Tanque Verde High School Abbigail Dockery, Salpointe Catholic High SchoolJuenne Fernando, Sabino High School, Tucson Unifi ed (TUSD) Jocelyn Guzman, Catalina Magnet High School, TUSDDavid Hahn, University High School, TUSDKaren Leon, Catalina Magnet High School, TUSDJerry Levitski, Tucson High School, TUSDOmar Lorta, San Miguel High School, Cristo Rey Karina Loyola, San Miguel High School, Cristo ReyMichael Malena, Pueblo Magnet High School, TUSDSaffi e Mohran, Tanque Verde High SchoolJake Noonan, Salpointe Catholic High SchoolJuliana Provencio, University High School, TUSDNamrah Shahid, Catalina Foothills High School Noelle Soltero, Pusch Ridge Christian AcademyBonnie Song, St. Gregory College Preparatory School Meaghan Sweet, Sabino High School, TUSDRubendario Valencia, Catalina Magnet High School, TUSDMakele White, City High SchoolEmma Wilford, City High SchoolEthan Wilson, University High School, TUSD

Students got the chance to tour an operating room during the Carondelet Neurological Institute’s Brain Academy last week.

Caro

ndel

et

Workforce dropouts driveunemployment rate down

Tucson’s unemployment rate in April was 6.6 percent, down a full percentage point from March and down 1.4 percentage points from April 2011, but 80 percent of the drop from March is attributed to people who’ve dropped out of the available workforce in the region, according to the Arizona Offi ce of Employment and Population Statistics.

Th e available Tucson workforce consisted of 456,400, down from 460,100 in March and 466,700 in April 2011.

Th e report says 1,300 jobs were added be-tween March and April. Th at was not the case year-over-year where the number of people with jobs fell by 2,800 or 0.7 percent and the workforce dropped by 10,300, or 2.2 percent.

Tucson’s unemployment is not season-ally adjusted.

Arizona’s unemployment rate, which is sea-sonally adjusted, dropped to 8.2 percent in April down from 8.6 percent in March. In April 2011 it was 9.6 percent. The national unemployment rate in April was 8.1 percent, down from 8.2 per-cent in March and 9.0 percent in April 2011.

April’s job gains were above historic aver-ages, with 84 percent coming from the private sector with the professional and business sector accounting for 46 percent of the gains.

Postal Service facility to close in February

Since Congress has been unable to make headway to change the U.S. Postal Service, Post-master General Patrick Donahoe says he will go ahead with previously announced plans to close mail sorting facilities. The Tucson facility, 1501 S. Cherrybell Stravenue, is to be closed by February.

About 100 sorting facilities will be closed across the country, with 48 to be closed this sum-mer. It will take up to two years to close the rest.

The closures are an attempt to stem losses at the Postal Service, which is on track to lose $21 billion by 2016.

Postal Service offi cials say 147 employ-ees will be aff ected by the Tucson closure, but all will remain with the Postal Service but assigned to other positions.

For Tucsonans, the closure will mean longer delivery times as all mail will be trucked to Phoenix for sorting. Next day de-livery will no longer be available in Tucson.

Arizonans not travelingas far for Memorial Day

More Arizonans are forecast to travel this Memorial Day weekend but they won’t travel as far did last year, according to AAA Arizona.

More than 700,000 will travel at least 50 miles over the weekend, up 1.6 percent from last year. Th e forecast says they will travel an average 680 miles and spend a me-dian $650, both about half what they did for Memorial Day 2011.

Michelle Donati, spokeswoman for AAA Arizona, said much of that has to do with the fact fewer people will travel by air this year. Nearly nine out of 10 will drive to their destinations.

Page 5: Inside Tucson Business 05/25/12

MAY 25, 2012 5InsideTucsonBusiness.com

Sonoran Regional Business Conference

Tucson is at the ‘T’ crossroads of global logistics opportunity By Roger YohemInside Tucson Business

Major international cargo corridors lit-erally converge to form a “T” on Tucson, creating a lucrative opportunity as a logis-tics crossroads. To move products to mar-ket, the region’s air, highway and rail net-works are a strategic strength.

To the west, the Port of Long Beach in California is overfl owing with containers from Asia and other global suppliers. In Mexico to the south, the seaport at Guay-mas, Sonora, is aggressively expanding its infrastructure. And to the east, offl oaded cargo in Houston is re-loaded for distribu-tion by rail and truck.

“Th e Tucson region is the springboard to logistics, border trade and commerce. It is an important link in cross-border rela-tionships, the supply chain moves in both directions,” said Oro Valley Mayor Satish Hiremath. “Our region does not end at the border, success depends on regional and international partnerships.”

Hiremath made his remarks before about 150 attenees at the Sonoran Region Busi-ness Development Conference May 18.

Th e event, put on by Caballeros del Sol and the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), was held at the Westward Look Wyndham Grand Resort and Spa. Attendees included representatives of economic development, business and government from Southern Arizona and the states of Sonora and Sinaloa in Mexico.

MTCVB vice president Felipe Garcia challenged the group to think globally, be-yond the congested shipping issues in Cal-ifornia and Texas. For the Tucson region, “it is supply chain opportunity. More mon-ey in Sonora will translate into more visi-tors to shop and businesses to invest in southern Arizona,” Garcia said.

Specifi cally, Ford Motor Co. is investing $1.3 billion to expand its manufacturing facilities in Hermosillo, Sonora. In addition to production of the 2013 Ford Fusion, the company will expand production there of the Lincoln MKZ.

“In the automotive industry, Sonora has a distinguished reputation for producing high-quality products at very competitive operating costs. Th e Hermosillo plant is recognized as one of the best in the world,” said Ricardo Brown, representing the So-nora Economic Development Council.

Th ere are about 80 automotive compa-nies employing more than 50,000 people in Sonora. Th ere are more than 20 internation-al suppliers co-located at Ford’s plant. Th e

company’s expansion plans will add 1,000 direct jobs to an existing base of 3,400 work-ers, plus another 7,000 indirect jobs. Addi-tionally, for the construction phase alone, 1,500 temporary jobs will be created.

“We have a very strategic logistic loca-tion. We have connectivity to the deep wa-ter seaport in Guaymas and access to the U.S. east and west coast. Automotive is our priority and we also have major industries in aerospace, mechanics, IT, electronics and medical,” Brown said.

Guaymas is seen as an up-and-coming aerospace cluster. In April, the aerospace division of Rolls-Royce announced plans to open a procurement offi ce for compo-nents for its jet turbine engines. Seventeen aerospace companies, including Sargent Aerospace & Defense and Honeywell In-ternational, already operate there.

Brown said auto partnerships are being pursued with car makers Audi, Toyota and Hyundai. Each company is interested in taking advantage of the region’s logistics, trained workforce, and access to the U.S. market.

Th at is the greatest opportunity for Southern Arizona, “to get involved in de-veloping the supply chain.” Brown said more regional companies would be wel-come, to support or replace existing sup-pliers in California and Detroit.

“Th e door is always open to supply companies coming in,” he said.

Establishing a “regional view” toward global commerce is an extremely valuable step, added the MTCVB’s Garcia. Th e Tuc-son region is competing with trade corri-dors around the world. On both sides of the border, “everyone will benefi t by pulling to-gether as a region. Th e connectivity, it starts in Marana and goes all the way south to Si-naloa. Th at is our logistics region, so let’s think and act that way,” he said.

Another positive step would be re-es-tablishing passenger train service between Tucson and Mexico, Garcia added.

Marana Mayor Ed Honea said the town “owes a huge debt of gratitude to our friends across the border. We are fully aware of the power of the Mexican con-sumer. A large portion of our sales tax rev-enue comes from Mexican citizens who come to shop in our stores.”

Taking a cue from Oro Valley’s Hire-math, Honea hung out the Marana wel-come mat.

“We are very supportive of ways to work with the business people of Mexico. Our council chooses to be a catalyst for busi-ness because commerce is the foundation of success for any community,” Honea said. “I welcome the opportunity to meet with anyone about an investment in Marana or maybe a Marana investment with you.”

Contact reporter Roger Yohem at

[email protected] or (520) 295-4254.

NEWS

Ricardo Brown explains Sonora’s aggressive economic development strategy.

Otis

Bla

nk

This Week’s Good NewsRitz-Carlton is top 10 spa

Spa fans who read Condé Nast Trav-eler magazine voted the Ritz-Carlton, Dove Mountain No. 3 on the 2012 list of the top resort spas in North America. Th e only other spa in Arizona to make the top 10 was Mii Amo resort in Sedona. Two other resorts in the Tucson region made the top 100: the JW Marriott Starr Pass Resort & Spa was No. 30 and the Miraval Resort & Spa was No. 73.

Condé Nast Traveler compiled rankings for nearly 29,000 responses to its Readers’ Choice Survey. Omphoy Ocean Resort, an 18-month-old resort at Palm Beach, Fla., was No. 1.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news

El Con building coming down Environmental abatement has been

started and physical demolition will follow this summer to take down the former Macy’s building at El Con by the end of September.

Th e El Encanto Neighborhood Associa-tion was in court this week in what may be a last-ditch eff ort to stop Walmart from build-ing and opening a new store on the site. Th e hope is that Pima County Superior Court Judge Jeff rey Bergin will issue his ruling within a couple of weeks.

BMW sets sights on Hermosillo It looks as if Ford Motor Co. is about to

get another automaker as a neighbor to its 1.5 million square-foot in Hermosillo, So-nora. BMW is getting ready to set up shop, those who know the details aren’t revealing them.

Sonoran economic development offi -cials accidentally let word of BMW slip out while visiting Tucson last week to attned the Sonoran Business Development Confer-ence. But they quickly caught their slip and buttoned their lips.

Mexicans swayed Tiffany Back in 2006 when jeweler Tiff any & Co.

was looking at potential store locations, ex-ecutives were romanced by La Encantada, 2905 E. Skyline Drive, with data about how much money comes across the border to shop in Arizona. Of the 24 million Mexicans coming through Arizona’s ports of entry, 64 percent come to shop. And for the Tucson region, they leave behind $1 billion a year.

Tiff any execs were convinced.

Page 6: Inside Tucson Business 05/25/12

6 MAY 25, 2012 INSIDE TUCSON BUSINESS

PUBLIC NOTICESSelected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIESChapter 11 - Business reorganization Elias Y. Freij and Obdulia M. Freij, 7157 S. Missiondale Road. Principal: Elias Y. Freij and Obdulia M. Freij, joint debtors. Assets: $883,861.31. Liabilities: $1,115,196.83. Largest creditor(s): Bank of America, Simi Valley, Calif., $305,017.00; Flagstar Bank, Troy, Mich., $267,630.00; and American Home Mortgage Service, Irving, Texas, $215,576.00. Case No. 12-10829 fi led May 16. Law fi rm: Eric Slocum Sparks

Patrick J. Rassier, 5100 W. Arivaca Road, Amado. Principal: Patrick J. Rassier, debtor. Assets: $1,245,482.01. Liabilities: $429,454.00. Largest creditor(s): Barbara J. Rassier, Los Angeles, $192,205.00 (disputed). Case No. 12-11037 fi led May 17. Law fi rm: Kristopher R. Rezagholi, Phoenix

Conley Holdings LLC doing business as Santa Fe Square and formerly known as Conley Printing LLC and Citizen Printing LLC, 7000 E. Tanque Verde Road, Suite 11. Principal: James E. Conley Jr., president/chief executive offi cer. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Dodge County Treasurer, Juneau, Wis., $13,975.00 (fi ling so far includes only unsecured creditors). Case No. 12-11105 fi led May 18. Law fi rm: Quarles & Brady

FORECLOSURE NOTICES Ventana 20/20 LP 5800 and 5855 N. Kolb Road (condominium units in The Greens and The Greens East) 85750Tax parcel: 114-68-0010 through 114-68-0150, 114-68-0170 through 114-68-0220, 114-68-0260, 114-68-0280, 114-68-0300, 114-68-0320 through 114-68-0380, 114-68-0400, 114-68-0410, 114-68-0430, 114-68-0470 through 114-68-0510, 114-68-0530 through 114-68-0600, 114-68-0660, 114-68-0720 through 114-68-0740, 114-68-0760 through 114-68-0830, 114-68-0850 through 114-68-0880, 114-68-0900 through 114-68-0920, 114-68-0960, 114-68-1050, 114-68-1060, 114-68-1090, 114-68-1100, 114-680-1130, 114-68-1150, 114-68-1170, 114-68-1190, 114-68-1210, 114-68-1340 through 114-68-1360, 114-68-1380, 114-68-1410, 114-68-1480, 114-68-1520, 114-68-1540, 114-68-1540, 114-68-1620, 114-68-1670, 114-68-1690, 114-68-1700, 114-68-1700, 114-68-1740, 114-68-1770 through 114-68-1790, 114-68-1840, 114-68-1870, 114-68-1890, 114-68-1900, 114-68-1940, 114-68-1990, 114-68-2020, 114-68-2070, 114-68-2120, 114-68-2140, 114-68-2230, 114-68-2260, 114-68-2300, 114-68-2310, 114-68-2380, 114-68-2480, 114-68-2490, 114-68-2530, 114-68-2540, 114-68-2580 and 114-68-2640 Original Principal: $30,300,000.00 Benefi ciary: East-West Bank, El Monte, Calif. Auction time and date: 11:30 a.m., Aug. 6, 2012 Trustee: T.D. Service Company, 4000 Metropolitan Drive, Suite 400, Orange, Calif.

LIENSFederal tax liens Roof Ops Inc., 1750 N. Stone Ave. Amount owed: $125,172.84. Aria International Inc., 9040 S. Rita Road, Suite 236. Amount owed: $17,238.58. Miriam D. Cosey LLC, 2114 W. Grant Road #24. Amount owed: $23,145.22. Perma-Glaze Inc., 1671 S. Research Loop. Amount owed: $46,641.70.Law Offi ce Stellisa Scott PLLC and Stellisa Scott, 239 N. Church Ave., Suite 101. Amount owed: $1,454.90.Pony Express Concrete Curbs LLC and Jose J. Mendivil Jr., 4565 W. Teton Road. Amount owed: $52,713.56. Tucson Fleet Transmission & Transaxle Exchange Corp., 2208 N. Stone Ave. Amount owed: $6,964.55. IBA Associates LLC, 2450 N. Pantano Road. Amount owed: $55,573.50. Imagine Internet LLC and Joseph A. Ambrose, 7670 E. Broadway, Suite 280. Amount owed: $12,527.78.A&L Auto Care and Arturo P. Estrada, 4325 S. Sixth Ave. Amount owed: $7,886.13. Hardy Roofi ng and James Norman Hardy, 2862 N. Sparkman Blvd. Amount owed: $11,067.17.Elite Business Installations LLC and Hector Hernandez, 8911 N. Veridian Drive, Marana. Amount owed: $26,925.25. Fred J. White DDS PC, 3822 E. Fifth St. Amount owed: $4,511.50.

By Lourdes MedranoTh e Christian Science Monitor

With apprehensions of illegal immigrants at a 40-year low, the U.S. Border Patrol is shifting its strategy away from fence-build-ing and a manpower “surge” at the border and toward one centered on intelligence and identifying threats to national security.

To some, the shift is overdue — a recog-nition that the huge expenses incurred un-der the former policy are out of proportion to its achievements. To others, it is folly to step back from an approach that, they say, has played a vital role in driving down illegal border crossings.

Th e new strategy, which border patrol chief Michael Fisher sketched for a House panel earlier this month, is crafted around the idea of risk assessment. It is the clear-est indication yet the Obama administra-tion intends to concentrate on intercepting repeat crossers and other potential threats to national security, according to a recent Associated Press report that included an interview with Fisher. Government offi cials have said in the past that frequent border crossers may be among the most likely to be involved in criminal smuggling of drugs and humans.

Measures to tackle the growing problem of corruption among border patrol agents are also part of the plan, the AP report said. Moreover, illegal immigrants caught trying to sneak into the U.S. will increasingly face consequences that are more serious than simply being deported. In some areas, in-cluding the busy Tucson sector, which re-mains the most popular crossing point, ille-gal border crossers already face jail time.

Researchers attribute the big decrease in border crossings partly to beefed-up en-forcement and partly to a sour U.S. economy and changed migration patterns in Mexico, home to nearly 60 percent of the people liv-ing in the United States without authoriza-tion.

Th e new strategy is appropriate, given the low numbers of people now coming across the border, says Rick Van Schoik, director of the North American Center for Trans-border Studies at Arizona State University in Tempe. “Everyone, I think, has started to recognize that we have the assets that we need, and they need to be more strategically and optimally deployed. Th at’s one reason you’re not seeing new calls for (more) fenc-ing by most of Congress.”

Th e border patrol has grown to 21,000 agents, and the U.S.-Mexico border is now fortifi ed with cameras and other high-tech surveillance. In 1996, Congress approved funding for thousands of agents and set

aside dollars to extend the border wall. Th e new strategy does not emphasize new fenc-ing.

State Sen. Steve Smith, R-Maricopa, for one, thinks little of the border patrol’s new priorities.

“Our federal government, they don’t see the magnitude of this problem,” says Smith, who last July launched a fundraising website to build a state border fence. “It’s folly … to stop putting up things that we know work, that we know are an impediment,” he adds, saying fencing is part of the solution, along with manpower and technology.

For years, immigrant advocacy groups have pressed for change in border patrol tactics. Tighter border enforcement in Cali-fornia and Texas in the mid-1990s pushed the fl ow of illegal border crossers to Arizo-na, where remote desert areas became the top entry point for migrants, some of whom perished making the journey.

“Fences now exist in all but the most remote and impassable areas, the ratio of migrants to (enforcement) personnel is at historic lows, and the ratio of dollars per ap-prehension is at historic highs,” concludes a yearlong study by the Washington Offi ce on Latin America, a human rights advocacy group, and Mexico’s College of the Northern Border.

“Meanwhile, it is not even clear how much of the reduction in migration owes to

security measures — though some cer-tainly does — and how much owes to other factors like recession and fear of organized crime,” states the study, which was released in April. “Additional dollars for current border security priorities will yield little additional payoff and are un-necessary.”

It’s evident that heavy funding for the U.S. Border Patrol is no longer a prior-ity, says George McCubbin, president of the National Border Patrol Council, the union that represents most border pa-trol agents. Part of the reason is that re-sources were wasted, he says, on a plan to add $1 billion in technology along the 2,000-mile U.S.-Mexico border to serve as a “virtual” fence.

“It didn’t do anything for the Ameri-can public,” McCubbin says of the failed project, known as SBInet.

He also acknowledges a problem with corruption inside the agency, but says agency administrators bear the re-sponsibility. In trying to fulfi ll Congress’s mandate to hire thousands of agents within a certain time frame, background checks were put off until after agents were already on the job, McCubbin says.

“Th e negative result of all that is, we hired a bunch of bad people,” he adds. “It’s a concern for all of us.”

NEWS

Era of fence-building, manpower ‘surge’ at border is at an end

Page 7: Inside Tucson Business 05/25/12

MAY 25, 2012 7InsideTucsonBusiness.com

NEWS

As tide of illegal immigrants goes home, what will be the economic impact for U.S.?By Lourdes MedranoTh e Christian Science Monitor

Th e steady stream of immigrant work-ers who used to line up at Tim Dunn’s farm near Somerton, ready to pick vegetable seed crops like black-eyed peas and garbanzo beans, has mostly dried up.

“We just don’t see people walking up, looking for jobs like they used to,” he says. Now he has to pay a labor contractor to fi nd enough people to tend his 2,200 furrowed acres under the harsh Sonoran desert sun near Yuma.

Th e dwindling supply of labor available to Dunn illustrates a signifi cant shift in mi-gration from Mexico, which has caused ille-gal immigration to drop to its lowest levels in at least a generation.

Even as states loudly debate new immi-gration restrictions, research suggests the il-legal immigration has slowed.

Th e migration explosion that since the 1970s had pushed millions of men, women, and children into the United States has fi z-zled, says Douglas Massey, a sociologist at Princeton University and codirector of the long-term, binational Mexican Migration Project. “We’re at a turning point, and what unfolds in the future remains to be seen. But I think the boom is over.”

Massey’s research shows that after the U.S. recession hit, the illegal population fell from about 12 million to 11 million, where it has hovered since 2009. (About 60 percent of the illegal population is Mexican.)

Similarly, Homeland Security estimates released in March suggest that while the number of unauthorized immigrants liv-ing in the United States grew 36 percent between 2000 and 2011, from 8.5 million to 11.5 million, that growth plateaued in 2010 and 2011.

“With no change in either direction, we’re roughly at a net zero,” says Massey, and adds that it’s something unseen since the late 1950s.

Th e 2004 movie “A Day Without a Mexi-can,” in which California grinds to a halt when Mexican laborers suddenly disappear, satirized a thesis that is now a subject of real-life debate among experts.

What if the workers that farmers, hotels, and restaurants have relied on for decades don’t come back? Will crops rot, beds stay unmade, and dirty dishes pile high in res-taurants? Th ose sectors can’t outsource labor; so will they slow, downsize, and will that create ripple eff ects across the already strained U.S. economy?

Experts agree that illegal immigration has declined sharply in recent years and cite the overall lack of work as the main reason many Mexicans choose to stay home.

But the big debate is how permanent the trend is. Most experts expect the fl ow to return once the U.S. economy rebounds. But some say there are other factors at play that could keep Mexicans home, including more access to legal U.S. work visas, border enforcement eff orts on the U.S. side and drug-war insecurity on the Mexican side, demographic shifts in Mexico, and growing economic incentives there.

In the more than a dozen states that re-quire businesses to confi rm employment eligibility through the Internet-based federal program E-Verify, employers are in a corner.

“Th e employers just really don’t have an option,” says Libby Whitley, president of Mid-Atlantic Solutions in Lovingston, Va. Her company handles visa applications for 600 employers who use temporary legal workers, mostly from Mexico. She adds that the farm labor workforce is 75 percent ille-gal.

Whitley has noticed growing interest in the H-2A visa program that brings in tem-porary seasonal farmworkers. But employ-ers still shun these visas, saying the program — which requires housing provisions and set wages — is too bureaucratic and costly. Advocacy groups long have maintained the program is fraught with employer abuse.

Massey says spot shortages are possible in sectors that employ large numbers of

Mexican workers, particularly agriculture, but he believes that a gradual shift toward the use of guest workers may off set any po-tential labor defi ciencies.

Mexicans in growing numbers are secur-ing visas that allow them to hold temporary U.S. jobs legally.

“Th e workers that are coming into the United States are not just agricultural work-ers, they’re workers in the non-agricultural sector, and increasingly, they’re skilled workers,” Massey said.

Th e U.S. State Department reports a 53 percent increase in temporary visas for sea-sonal farm work issued between 2006 and 2010. And other visa categories are driving the expansion too, including those for pro-fessional health and technology workers un-der the North American Free Trade Agree-ment.

But even with the visas, the farm labor situation suff ers, says David Dyssegaard Kal-lick, a senior fellow at the Fiscal Policy Insti-tute, a nonpartisan think tank in New York. Th ose jobs “really do seem to go begging when immigrants are pushed out, at least temporarily.”

In the long run, Kallick says, the U.S. la-bor market probably would adapt: “Maybe wages and working conditions would go up enough to make the jobs more attractive, or maybe some farms would close up shop. Ba-

sically though, I don’t think dishes wouldn’t be washed in restaurants without immi-grants to do it.”

He says the fl ow of immigrants will re-turn when the demand for workers is back, although “we’re not anywhere near there” yet.

“As long as the large wage diff erences be-tween Mexico and the U.S. exist, there will be incentives for people to endure the real risks of crossing illegally,” says Judith Gans, manager of an immigration policy program at the University of Arizona. She says that as jobs do become available, the pressure on the border will correspondingly increase.

In the long term, the changes in Mexico and shifts in migration in all of Latin Amer-ica may ease the pull north of the border, Gans adds.

Th e impact of fewer illegal immigrants coming into the U.S. will depend on how long it takes for the economy to bounce back, says Audrey Singer, a senior fellow at the Brookings Institution, a Washington public policy group.

“In the intervening time, a lot can happen in a place like Mexico, where unemployment is relatively low right now,” she says. “Birth-rates have dropped and the demand for workers has been rising. For young people entering the workforce, it may mean more opportunities and less reason to leave.”

Laborers picking winter lettuce near Somerton in February 2009. As more legal and illegal immigrants stay home, there is concern about how it will affect the U.S. labor pool.

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8 MAY 25, 2012 INSIDE TUCSON BUSINESS

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MAY 25, 2012 9InsideTucsonBusiness.com

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Page 10: Inside Tucson Business 05/25/12

10 MAY 25, 2012 INSIDE TUCSON BUSINESS

Employee skills and customer vision drive Buchanan Electric’s success

PROFILE

By Alan M. PetrilloInside Tucson Business

The difficult economy has taken its toll of construction-related firms, but at least some in Southern Arizona have found ways to cope and even thrive. That’s the case with Buchanan Electric Inc., an electrical contractor that made the switch from residential tract home construction work to commercial renovation and ten-ant improvement jobs, as well as the cus-tom home business.

Buchanan Electric, owned by husband and wife Jeff and Susan Tolin, owes its continued success, according to Jeff Tolin, to its long-time employees, as well as the various visions its clients ask them to implement.

“We enjoy this business because every project is different,” he said. “The vision from each client is unique to their taste and needs, and when the dust settles you can step back and see the result of your labors, which is tangible and real.”

Tolin pointed to his employees — elec-tricians Mark Nilsen, Joseph Gasmen, Al Munyon and helper Erik Nilsen — as a major force in keeping the firm in the black. The employees transitioned well in the change from residential to com-mercial work, which is not always an easy thing to do, he said.

“They take enormous pride in their work,” Tolin said, “and we are very proud of their work ethic and the professional-ism they exude.”

Buchanan Electric was started by Craig Buchanan in 1975 and incorpo-rated in 1986. Jeff Tolin, who followed his father Jim into the construction industry, apprenticed with Blue Star Electric in Tucson in 1982, and began working for Buchanan Electric in 1987.

When Buchanan wanted to retire in 1997, he offered the Tolins an opportu-nity to purchase the business. Jeff Tolin recalls that it was “a big risk because we were raising a young family and it would

require Susan to resign her position with Pima County Health and Human Services Department to run the office.” The couple took the risk and bought the business in 1998.

These days, in commercial work, Buchanan Electric tackles new construc-tion, remodels, tenant improvements, service upgrades and consultation. On the residential side of business, they are specialists in custom home work, from new con-struction, through remodeling, additions, repairs and service changes.

Two projects Buchanan Electric recently closed out were the Hub Restaurant and Ice Creamery and the Playground Bar and Lounge in downtown Tucson, both owned by Kade Mislinski. Buchanan Electric worked with general contractor Cutshaw-Yeager Construction on the two projects, which Tolin called “especially important to us because they raise the bar in the revitalization of downtown Tucson. We are happy being a small part of that revitalization.”

Tolin said Buchanan Electric is also working with Peach Properties owner Ron Schwabe on a couple of commercial renovations near downtown and antici-pates more work in that area. Buchanan Electric also handled the electrical work for the new Marana Mortuary Cemetery, a Leslie’s Pool Supply store in Green Valley and several custom homes.

Susan Tolin says that “for a lot of com-panies in construction, the state of busi-ness is more peaks and valleys, which is very unpredictable. You have to get out of your comfort zone and go after the work you’re best suited for. That’s how you weather the storm.”

As for the future, she said Buchanan Electric will concentrate more in its new niche of small to mid-sized commercial projects, as well as custom homes.

Jeff Tolin thinks one of the biggest challenges in his business comes in working with owners and architects, and implementing their vision.

“We have to make sure what their vision is for the space in terms of mood and lighting,” Tolin said. “We want to know what appearance or presentation they want for their building and want to make sure it comes out the way the owner

wants. Working through the extra layers of architects and the General Contractor between us and the owner takes good communication.”

But arguably the biggest challenge facing any small business in a depressed economy, Tolin noted, is having to wear many hats.

“First is getting the work, then doing the work properly, overseeing the work to be sure it’s the way it should be done, and finally making sure we get paid promptly,” he said. “You can get worn pretty thin wearing all those hats.”

BIZ FACTS

Buchanan Electric1241 W. Monte Vista St.www.buchananelectronic.com(520) 884-9225

Buchanan Electric electrician Mark Nilsen and electrician assistant Erik Nilsen, put the fi nal touches on a sign for the Playground in downtown Tucson.

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More, but maybe not better, comedies coming to TV this fall By David Hatfi eldInside Tucson Business

Th e annual “upfront” presentations by the broadcast networks have been completed.

Last week, I passed along the verdicts from the network execs on shows that got cancelled. Th is week, we check in on the shows that made for excitement among advertisers and others — “upfront” is so named because the networks try to sell as much commercial time as they can “upfront” ahead of the start of the new season.

Th ere will be more sitcoms. It’s logical, when done right sitcoms can be extremely lucrative and it happens to be a genre of programming that cable networks — whether it’s basic cable or the HBOs and Showtimes of the world — haven’t been as successful.

According to trade reports, though, the networks may be lowering the bar for the com-ing season, noting that some comedies that have been borderline ratings successes are coming back. Shows such as NBC’s “Whitney,” “Up All Night,” “Community” and “Parks and Rec” and ABC’s “Happy Endings” and “Don’t Trust the B---- in Apt. 23.”

CBS, which has had more success with sitcoms, didn’t keep any that weren’t ratings successes. And among the networks, CBS is the one that will introduce more new dramas than comedies in the fall.

If those who saw the fall presentations are an indication of potential success, two comedies that are getting some of the best reactions are NBC’s “Go On” starring Matthew Perry and “Partners,” which is CBS’ only new comedy.

“Go On,” which is scheduled to air at 8 p.m. Tuesdays on KVOA 4, has Perry as cocky sportscaster Ryan King who is required by his boss to join a support group. Th e backstory is

that he just lost his wife in a car accident. “Partners”, 7:30 p.m. Mondays on KOLD 13,

is based on the lives of creators David Kohan and Max Mutchnick, who created “Will & Grace.” Th ey’ve been long-time best friends and business partners but that relationship is tested when one gets engaged to be married.

At the other end of the spectrum, the comedy that appeared to get the least reaction — the trades called it an uncomfortable silence — was a show called “Th e Neighbors,” 8:30 p.m. Wednesdays following “Modern Family” on KGUN 9. It’s about a family that buys a home in a gated community in New Jersey only to fi nd out their neighbors — all their neighbors in the community — are from the planet Zabvron where, among other things, men bear children and they cry green goo from their ears.

Another one that didn’t play well to the crowd was NBC’s “Guys with Kids,” 8 p.m. Wednesdays KVOA 4, about three 30-some-thing dads trying to hold on to their youth. Jimmy Fallon is the executive producer.

New dramas that piqued curiosity include CBS’ “Vegas,” 9 p.m. Tuesdays on KOLD 13, starring Dennis Quaid and Michael Chiklis in

a series based on the true story of former Las Vegas Sheriff Ralph Lamb, and ABC’s “666 Park Ave.,” 9 p.m. Sundays KGUN 9, about the residents of a New York building who’ve made a Faustian contract.

Series that will be returning in the fall, include:

• ABC (KGUN 9): Second-season renewals went out to “Last Man Standing,” “Suburga-tory,” “Scandal,” “Once Upon a Time” and “Revenge” (in addition to the already noted “Don’t Trust the B---- in Apt. 23”.) Also returning will be “Body of Proof,” “Th e Middle,” “Modern Family,” “Castle,” “Private Practice,” “Grey’s Anatomy,” “Dancing With the Stars” and “Th e Bachelor.”

• CBS (KOLD 13): “2 Broke Girls,” “Two and a Half Men,” “Big Bang Th eory,” “How I Met Your Mother,” “Mike & Molly,” “Th e Amazing Race,” “Blue Bloods,” “Criminal Minds,” “CSI: Crime Scene Investigation,” “CSI: NY,” “48 Hours Mystery,” “Th e Good Wife,” “Hawaii Five-O,” “Th e Mentalist,” “NCIS,” “NCIS: Los Angeles,” “Person of Interest,” “Survivor” and “60 Minutes.”

• Fox (KMSB 11): “American Dad,” “Ameri-can Idol,” “Bob’s Burgers,” “Bones,” “Th e Cleveland Show,” “Family Guy,” “Fringe,” “Glee,” “Hell’s Kitchen,” “New Girl,” “Raising Hope,” “Th e Simpsons,” “Touch” and “Th e X Factor.”• NBC (KVOA 4): “Th e Voice,” “Parenthood,” “Law & Order: SVU,” “30 Rock,” “Th e Offi ce” and, in midseason, “Smash.”

• CW (KWBA 58): “Gossip Girl,” “Nikita,” “Hart of Dixie,” “America’s Next Top Model,” “Th e Vampire Diaries,” “90210” and “Super-natural.”

Names in newsSean Mooney has been named a weekend

co-anchor at KVOA 4, replacing Brandon Gunnoe who is off to Boston where he’ll be

weekend anchor at WHDH, the NBC affi liate.Mooney, a graduate of the University of

Arizona, also spent time as an anchor in Boston, working at the CBS affi liate for a year before returning to Tucson in 2000. Mooney also has been a news anchorman in the New York market, working at WWOR. His career goes back to 1988 when he made a name for himself working as an announcer for WWF Wrestling. Since returning to Arizona Mooney has worked as a reporter and producer for Fox Sports Net and run his own production company. His brother is well-known Tucson commercial photographer, Chris Mooney.

Meanwhile, Gunnoe is moving on after a quick two years in Tucson. Coming from Fort Myers, Fla., where he had been a weekend anchor for four years, Gunnoe was fi rst a co-anchor on KVOA’s early weekday morning program “Tucson Today” and then moved to the weekends in November 2011.

One other change at KVOA recently is the arrival of meteorologist John Patrick on the weekend newscasts replacing Chris Nallan, who has parted ways with the station and is apparently looking to pursue other opportu-nities, as they say. Patrick arrived in March from Yuma, where he was the chief meteo-rologist on the CBS affi liate. He’s a Phoenix native.

Now it can be told: KGUN 9 weekend sports anchor Jake Knapp is headed for Phoenix where he’s going to work at KPNX, the NBC station. Th e station revealed last month that Knapp was leaving after six years but wouldn’t say where he was headed. His last day on the air at KGUN is Sunday.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

Fall TV

Page 12: Inside Tucson Business 05/25/12

12 MAY 25, 2012 INSIDE TUCSON BUSINESS

Concerts will rock Casino Del Sol’s AVA Amphitheater this summer. Next up, at 8 p.m. Th ursday (May 31) is Chickenfoot, the supergroup formed by singing legend Sammy Hagar, guitarist Joe Satriani, bassist Michael Anthony and drummer Chad Smith.

Tickets are $25 to $45 and can be bought online at www.casinodelsol.com/ava-amphithe-ater . Casino Del Sol is at 5655 W. Valencia Road.

Other concerts coming up this summer: German rock band Scorpions performs June 17, Chicago and the Doobie Brothers share the stage July 11, Joe Cocker and Huey Lewis and the News perform July 15, Earth, Wind and Fire will be here July 31, British soul and R&B singer-song-writer Seal is on Aug. 3, Duran Duran plays Aug. 12, Crosby, Stills and Nash is Sept. 5, and Def Leppard and Poison perform Sept. 12.

More musicTh e Friday Night Live free concerts at

Main Gate Square continues at 7 p.m. June 1 with a performance by the jazz fusion group Sylvan Street. Main Gate Square on University Boulevard west of the University of Arizona. Th e Friday Night Concert series happens twice monthly though August and is presented by the Southern Arizona Arts and Cultural Alliance (SAACA).

ArtTwo new art exhibits of note this week.

First is an exhibit at the Tucson Jewish

Community Center, 3800 E. River Road, featuring Judith A. Kramer paintings of “abstract architectural and geometric

explorations.” Th e show is on display through June 27. Th e show features some dynamic imagery that reminds one of geometric art deco and early 1920s graphic design.

Th e other exhibit is at the Joseph Gross Gallery, 1031 N. Olive Road on the UA campus, and features artwork by Josh Keyes titled “Above and Below.” Th ese eco-surrealist paintings present a unique vision of the modern world mixing humor and

irony in a perfect blend. Th e show will be up through Aug. 30.

FilmTh is weekend’s big movie release is “Men

In Black III” with Will Smith revisiting the world of secret government agencies protecting us from a host of aliens. Joining Smith this time around is Josh Brolin, playing a young Tommy Lee Jones. Also opening this weekend is the new horror thriller “Th e Chernobyl Diaries,” which follows a group of young thrill seekers as they tour abandoned ruins in Russia only to fi nd something has survived the radiation leak, and is now hunting them.

Contact Herb Stratford at herb@

ArtsandCultureGuy.com. Stratford teaches

Arts Management at the University of Arizona.

He appears weekly in Inside Tucson Business.

ARTS & CULTURE

OUT OF THE OFFICEMEALS & ENTERTAINMENT

Now that our daytime high temperatures have topped 100, you can hear the sound of car doors slamming and tires squealing as we zonies make tracks for the sand, surf and cooler climes of San Diego. Tucson restaurateur Massimo Tenino has figured out his own way to enjoy both Tucson and San Diego.

Tenino, chef and owner of Tavolino italian restaurant in Plaza Colonial in the Catalinia Foothills, has just opened Isola Pizza Bar in the Little Italy section of San Diego.

The San Diego restaurant, named after his grandmother, is an intimate place featuring 14 different pizzas. But there are also selections of antipasti and salads and a salumeria featuring Italian cured meats.

In keeping with the family theme at Isola, Renino prominently features wines from Pietro Rinaldi, a winery in Piemonte, Italy, owned by his brother Paolo.

When you’re in San Diego, check out Isola Pizza Bar. It’s open every day except Monday starting at 11 a.m. and until midnight on Fridays and Saturdays, 10 p.m. other nights.

• Isola Pizza Bar, 1526 India St., San Diego — www.isolapizzabar.com — (619) 255-4230, but they don’t take reservations

Temps up, prices downWith Tucson’ rising temperatures also come

falling prices on restaurant specials. This weekend being Memorial Day, is when most restaurants crank up the specials that will be with us through Labor Day.

The local independently owned restaurant

members of Tucson Originals are back with $20 specials. You can find them all online at http://tucsonoriginals.com/ . There are conditions and

limitations on each of the offers. There are a couple of $20 specials

I think stand out as being especially good values:

• The Dining Room at Lodge on the Desert, 306 N. Alvernon Way, is offering two burgers made of grass-feed beef and two local draft beers after 5 p.m.

• Feast, 3719 E. Speedway, is offering two appetizers and two glasses of wine (priced under $10) until 6 p.m. Mondays through Saturdays.

Tea Room to bistro As of July 1, the Tea Room at Tohono Chul Park,

7366 N. Paseo del Norte, will become the Tohono Chul Garden Bistro. Along with the name change, Jason Hartenbach and Patrick Fahey will take over the operation from Albert Hall and Lila Yamashiro, who have been running it the past three years.

Hartenbach, of River’s Edge Catering Co., and Patrick Fahey, whose career as a chef and restaurateur has included Keaton’s and the Ocotillo Café at the Arizona-Sonora Desert Museum, have teamed in other ventures, including a food truck called the Mobile Bistro. Details about the new menu at Tohono Chul are still being worked out.

Meanwhile, fans of Hall and Yamashiro need not panic as the couple continues to operate their Acacia restaurant, 3001 E. Skyline Drive in Gallery Row.

Contact Michael Luria at mjluria@gmail.

com. Meals & Entertainment appears weekly in

Inside Tucson Business.

Tucson restaurateur takes aslice of San Diego’s Little Italy

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Page 13: Inside Tucson Business 05/25/12

MAY 25, 2012 13InsideTucsonBusiness.com

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GOOD BUSINESSWOMEN IN BUSINESS

Make your employees raving fans and your customers will be, too

Have you wondered why some employees are without passion? Does it seem like they are working because they have to, not because they want to? Are you pleasantly surprised when you receive marginal customer service? Does customer service seem like a thing of the past?

Have business owners and employees forgotten that people do business with people they like? Do you worry about how to get your customers to return to your business again and again?

Have you wondered about how to get new customers to select your business over a competitor?

If you actually answered “no” to those questions, then chances are your employ-ees express passion in each and every customer interactions and, as a result, your business has raving fans.

If you found yourself answering “yes” to the questions, then here are 12 simple goals you must meet to create life-long raving fans for your staff and your customers:

1. You have a fully trained staff that provides caring and attentive customer service with every customer interaction.

2. Your staff loves their jobs and they show it to your customers every day.

3. Your staff displays a high degree of passion, product knowledge and compre-hensive follow through each time they speak with a customer.

4. Your staff answers the phone by the third ring with genuine warmth and a smile.

5. Your staff believes the reason you are in business is because of satisfi ed customers.

6. You encourage your staff to form lifelong business relationships, actively network and fervently give of their time to local charities.

7. You have ethical and informative advertisements and company information in print and on all applicable social media sites.

8. You encourage customers to fi ll out satisfaction surveys so you can continu-ously improve your customer service.

9. You are aware your receptionist is your fi rst opportunity to market your business positively, so you do not use an impersonal automated calling tree. If a customer must be placed on hold, you have recorded educational business information for your customers to listen to.

10. You make sure every day that your business is easily accessible, clean, attractive and customer focused.

11. You role model outstanding customer service to your staff .

12. You inspire your team to greatness through positive coaching and by continu-ally telling them that the reason you are successful is because of their outstanding service to our customers.

Attracting customers to your business through a clever marketing plan may be a fi rst step to your success, but the step that assures your customers will return year after year, is your staff .

Take time to sit down with employees once a month and read out loud your customer satisfaction surveys. Discuss solutions to negative comments and celebrate winning comments. Ask your staff if they realize the importance customer satisfaction plays in the business’s growth and sustainability. Ask them to give you an example of the last time they fi lled out a customer satisfaction survey and why they fi lled it out.

Routinely ask each staff member to give at least one example of outstanding customer service they provided in the last month, how that customer reacted and if that customer has returned? Collectively, everyone can determine what her or his customer service secrets are and put them into a successful action plan.

Outstanding customer service provided by fully trained, passionate and caring staff does not have to be a thing of the past. It should become your most powerful marketing tool resulting in lifelong raving fans.

Contact Jan Woods, hospital

administrator and co-owner of Veterinary

Specialty Center of Tucson, through her

company’s website, www.vscot.com or call (520)

795-9955. Veterinary Specialty Center of Tucson

has received Copper Cactus and Arizona Small

Business Association awards for customer

service and as a “best place to work.”

JAN WOODS

Page 14: Inside Tucson Business 05/25/12

14 MAY 25, 2012 INSIDE TUCSON BUSINESS

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GET ON THE LISTNext up: Internet service providers, Website designers, Computer hardware retailers, Software companies

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

• June 1: Law fi rms• June 8: Internet service providers, Web-

site designers, Computer hardware retailers, Software companies

• June 15: Retirement communities, Ac-tive adult retirement apartments, Assisted living facilities

• June 22: Offi ce machine retailers, Offi ce furniture retailers, Offi ce supply retailers

• June 29: Grocery stores, Drug stores If your business 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 at the top of the

page. New and unlisted businesses can cre-ate 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.

NEW IN TOWNDoubleTree opens suitehotel at Tucson airport

Tucson now has a second lodging estab-lishment with the name DoubleTree. Th e DoubleTree Suites by Hilton Tucson Airport

is now open at 7051 S. Tucson Blvd. at the entrance to Tucson International Airport.

Th e 204-room suite hotel was formerly a Radisson Hotel that has added product enhancements throughout the property, including a redesigned lobby, Guests will also receive DoubleTree’s signature warm chocolate chip on check-in.

Finnegan’s Restaurant will remain a part of the hotel.

Th e hotel is owned by Tucson Suites LLC and operatee under a franchise li-cense agreement with a subsidiary of Hilton Worldwide.

Th e new hotel’s website is www.tuc-sonairportsuites.doubletree.com and the phone is (520) 225-0800.

TELESERVICES Geico sets plans to fill 200 job openings

Insurance provider Geico hopes to fi ll more than 200 job openings in its Tucson customer service, claims and sales divi-sions. Th e company says it plans to hire en-try-level candidates who possess eff ective verbal and written communication skills, excellent computer and multi-tasking skills, and demonstrated job stability.

Additionally, college graduates can ap-ply for Geico’s Supervisor Leadership Pro-gram, an entry-level, fast-track manage-ment training program that develops future business and team leaders. Candidates for this selective program are required to have a bachelor’s degree in business, or signifi cant business coursework, leadership skills, as well as an overall GPA of 3.2 or higher.

Geico will host a career fair from 4-6 p.m. June 21 at its Tucson offi ce, 930 N. Finance Cen-ter Drive, and is planning to host career fares the third Th ursday of each month. Information can also be found online at Geico’s website — www.geico.com and click on careers.

Martha Furnas, regional vice president for Geico, said the company is reaching new heights, noting that a Tucson associate re-cently sold the company record 11 millionth policy. “It’s truly a great time to be here,” Furnas said.

Geico, short for Government Employees Insurance Company, is a Berkshire Hatha-way company.

RETAILRA Sushi parent ageesto be bought for $296M

Benihana Inc., operator of RA Sushi res-taurants as well as its namesake chain, has agreed to be bought out by the private eq-uity fi rm Angelo Gordon & Co. in a deal val-ued at $296 million cash.

Th e company, which is nearly 50 years old and publicly traded since 1983, said in March that it wanted to “explore strategic alternatives” to try to boost profi ts.

Th e company had considered a sale in July 2010, about the time it closed its only

BRIEFS

Page 15: Inside Tucson Business 05/25/12

MAY 25, 2012 15InsideTucsonBusiness.com

Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print.

{TELL US ONLINE}

PEOPLE IN ACTIONELECTIONS

DM-50, an organization aimed at improving the quality of life for Davis-Monthan Air Force Base airmen and their families, has elected Mike Grassinger as president. Grassinger is a principal at The Planning Center. Other new members elected to serve the DM-50 include: Timothy Amalong, Velocity Air; Boyd Drachman, Drachman Insurance; Jack Harris, The Jack Harris Company; Scott Jones, Raytheon; Clint Mabie, Community Foundation of Southern Arizona; Mary Okoye, Scutari & Cieslak Public

Relations; Randy Rusing, Sundt Corporation; Matt Russell, Russell Public Communications; Eugene Santarelli, S’Relli Consulting; Chip Yetzer, C. Yetzer Builders.

AWARDS

City of Tucson Environmental Services equipment operators Ruben Rivera and Rene Brockman were awarded fi rst and second place in the side loader competition at the annual Road-E-O. The statewide Road-E-O was sponsored by the Arizona chapter of the Solid Waste Association of North America (SWANA). Competing operators were required to take a written

drivers’ safety exam and navigate their vehicles and equipment through a series of obstacles to perform exercises simulating everyday encounters. As fi rst and second place winners, they are entitled to compete against operators from the United States and North America in the SWANA International Road-E-O.

Deanna Conn of Quarles & Brady LLP has been selected as a recipient of the 2012 “Top 50 Pro Bono Attorneys in Arizona” award by the Arizona Foundation for Legal Services and Education. Conn practices in the areas of commercial and intellectual property litigation.

NEW HIRES

Omni Tucson National Resort has hired Audra Barrios as catering sales. Barrios graduated from Northern Arizona University with a B.S. in hotel and restaurant management.

Monterey Court Cafe has hired Dawn Badman as a chef. Badman began her culinary career working for her grandparents, who ran the R&R Cafe near the former Tucson Greyhound Park. Most recently, she was sous chef for Compass Group Dining and Bluefi n Seafood Bistro. Prior to that, she worked for Kingfi sher Bar & Grill and Cafe Terra Cotta.

Paradigm Tax Group

has hired Nick Ruiz to run its new Tucson offi ce. He joins Paradigm from Bancroft & John P.C. where he handled property tax appeals in Arizona and Nevada. Prior to that, he spent three years with a local tax fi rm handling appeals throughout Southern Arizona. He has a B.S. in regional development from the University of Arizona.

PROMOTIONS

Tatyana Bresler has been made a partner at Eglin+ Bresler Architects, P.C., formerly Eglin/Cohen Architects. Bresler earned a masters degree in architecture in St. Petersburg, Russia.

MIKE GRASSINGER NICK RUIZDAWN BADMAN DEANNA CONN

Benihana restaurant in Tucson. A sale was never consummated. Th e company has op-erated a RA Sushi restaurant in La Encan-tada since 2004.

TRANSPORTATION Tucson traffic isn’t allthat bad, report says

A new study rating traffi c congestion in the nation’s largest 100 metropolitan areas gave Tucson good marks.

Th e NRIX Traffi c Scorecard Annual Report for 2011 put Tucson near the bottom of the list in terms of time spent in traffi c, at No. 93.

Over the past 12-month period, Tucson commuters spent an average of 2.4 hours in congested traffi c, according to the study.

Phoenix ranked No. 37. Its commuters spent about 12.7 hours in congestion over the past 12 months, according to Inrix.

Th e ten worst cities for hours wasted in traffi c last year were:

1. Honolulu (58 hours) 2. Los Angeles (56 hours) 3. San Francisco (48 hours) 4. New York (57 hours 5. Bridgeport, CT (42 hours) 6. Washington, D.C. (45 hours) 7. Seattle (33 hours) 8. Austin (30 hours) 9. Boston (35 hours) 10. Chicago (36 hours)

HOSPITALITY & LEISURETucson ranks near bottom on analysis of parks

A new analysis of parks in the 40 largest cities in the U.S. places Tucson at No. 31.

Th e analysis conducted by the Trust for Public Land, rates cities’ parks based on

acreage, access, services and investment.Th e rankings took into account land

owned by regional, state and federal agen-cies when analyzing cities.

On a 120-point scale, the Trust for Public land gave Tucson 46 points.

Tucson also received low marks for park acreage, which accounts for about 2.7 per-cent of the city’s total land area, according to the analysis.

Th e analysis also found that Tucson has about 2.17 playgrounds for every 10,000 residents.

San Francisco was No. 1 on the list, fol-lowed Sacramento, Boston, New York and Washington, D.C., made up the top fi ve cit-ies for parks, according to Th e Trust for Pub-lic Land.

Phoenix was ranked No. 16 and Mesa was No. 36.

Fresno, Calif. Earned the bottom spot of the survey.

Read the entire study at parkscore.tpl.org.

COMMERCIAL REAL ESTATE Condos near Ventana indefault on $30M loan

A notice of trustee’s sale has been fi led on Th e Greens at Ventana Canyon, an up-scale apartment rental/for-sale home com-munity at 5800 and 5855 N. Kolb Road. Ac-cording to public records, Phoenix–based Ventana 20/20 LLC has defaulted on a $30.3 million note and the property will be sold at public auction in August.

Th e 21-acre development off ers luxurious one, two and three-bedroom units, ranging in size from about 820 to 1,200 square feet. Th e property includes three pools, a spa, fi t-ness center and clubhouse.

Th e foreclosure includes about 110 units on both sides of Kolb Road, known as the

Greens and the Greens East, according to the fi ling. Overall, there are about 265 units at the site.

Th e benefi ciary is East-West Bank of El Monte, Calif., which also is handling the public auction. It is set for 11:30 a.m., Aug. 6 at the Pima County Courts Building, 110 W. Congress St.

GOVERNMENTRio Nuevo board seeks millions more from city

Infi ghting between the City of Tucson and its former charge, the Rio Nuevo Multipurpose Facilities District has reached a new low.

Lawyers for Rio Nuevo’s board have served the city with legal papers stating the special taxing district board’s intent to seek $25 million for a supposed breach of sublease agreement regarding the Tucson Community Center (TCC).

An agreement between the city and Rio Nuevo penned in 2002 and updated in 2009 designates the city the tenant of TCC. Rio Nuevo owns the convention center portion of the TCC while the city owns the Music Hall and Leo Rich Th eater.

Th e claim letter accuses the city of not maintaining the TCC as required under terms of the lease agreement.

In an earlier back-and-forth with the board, city attorneys said the property has been maintained as evidenced by improve-ments the city has made and that it remains in regular use.

Rio Nuevo attorneys dispute the claim, pointing to a list of needed capital improve-ments to the TCC that city produced last year as proof the cite has not been main-tained.

Th e Rio Nuevo board made similar legal threats against the city late last year, de-

manding $47 million and some west down-town properties the city owns.

Th e two parties had been attending me-diation sessions aimed at resolving the pre-vious legal dispute.

Some progress had been made on that front, with an initial agreement to share costs on some repairs to the TCC arena.

In light of the recent dispute, city offi cials decided to pull out of the mediation.

Th e city has 60 days to settle the claim with Rio Nuevo. After that time, the board can chose to pursue legal action.

No contract renewal forSahuarita town manager

Sahuarita Town Manager Jim Stahle will not have his contract renewed when it ex-pires in a year. Th e town council voted un-amimously against a new contract after an hour-long closed-door session.

Stahle, who initially went to work for Sa-huarita in 1999 as planning and zoning di-rector, has been the town’s manager since July 2001. Stahle previously worked in Yuma.

After the May 15 vote, Stahle said he had no inkling of any lack of support from the council, saying, “it’s diffi cult to hear, but you move on, it’s the life of a town manager. I’ve been proud of my time here. I appreci-ate being given the opportunity to be here. I have only positive things to say. I’ll talk to my family. A new door will open.”

Mayor Duane Blumberg declined to comment about the council’s vote.

Stahle came under criticism in 2008 from some residents for failing to expand the town’s wastewater treatment facility fast enough to accommodate growth. Th e criticism was driven largely by developers of Rancho Sahuarita.

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Page 16: Inside Tucson Business 05/25/12

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How to use ‘Twitterns’ to promote your company in social media Offi cials at companies looking to cash in

on the marketing power of social media might be tempted to think enlisting unpaid summer interns — or “Twitterns” — to manage this advertising medium benefi ts both parties. Business leaders tend to believe college students gain experience in the workplace while providing the com-pany a no-cost means of promoting goods or services. But companies need to be mindful not to run afoul of federal and state law so Twitterns do not become employees entitled to wages and poten-tially overtime compensation.

Th e Fair Labor Standards Act (FLSA), the federal law that governs minimum wage and overtime, makes clear that uncompensated interns are exempt from regulation under its provisions only if the following criteria are met:

1. Th e internship is similar to training that would be given in an educational environment.

2. Th e internship experience is for the benefi t of the intern.

3. Th e intern does not displace regular employees, but works under close supervi-sion of existing staff .

4. Th e business or individual providing the opportunity derives no immediate advantage from the activities of the intern.

5. Th e intern is not necessarily entitled to a job at the conclusion of the internship.

6. Th e business or individual and the intern under-stand the intern is not entitled to wages for time spent in the internship.

If, for example, a business tells the

intern he or she must increase sales for the company, then such an objective likely indicates the intern is functioning more as an employee, rather than an intern.

In contrast, if the business asks the intern to help monitor the company’s social media accounts, the purpose of which is to educate the intern as to the company’s business model, and explains to the intern that he or she may use this experience in connection with a college thesis, then these facts show the Twittern is actually functioning as an intern.

Th e U.S. Department of Labor, the federal regulatory agency tasked with administering the FLSA, advises that the internship should be for a fi nite period of time, the end of which is known to all parties before the internship begins. Furthermore, a company should not use an internship as a free look whereby the business can decide whether to hire the individual as an employee following the internship.

It is important that businesses take care not to inadvertently create an employment relationship with an unpaid intern. If there is no employment relationship between the intern and the business, at least for purposes of the FLSA, that means the federal minimum wage and overtime rules do not apply. If a company does hire an unpaid, volunteer intern to create and or manage social media platforms, the company should clearly defi ne the parameters of the intern’s position in light of the pronouncements from the Depart-ment of Labor and the guidance included in the FLSA.

Separate from the logistical concerns of structuring the internship in a way that comports with the FLSA, businesses also should ensure the intern complies with the company’s existing social media policy, notwithstanding the lack of an employ-ment relationship between the parties.

For example, a business retaining an unpaid intern to manage its social media accounts must reach a clear understanding with the intern that the business owns the accounts and retains the right to continue managing and utilizing them when the intern departs. Additonally, the company’s social media policy must inform the intern about what is acceptable content on social media pages. Th is is particularly important if the intern will be responsible for creating content or managing content that other individuals post online.

College students and other individuals entering the job market for the fi rst time are prime candidates to assist businesses with social media marketing because for their familiarity and savviness with technology and its seemingly limitless variety of marketing applications.

Companies are free to take advantage of this talent, provided unpaid arrangements for social media interns are structured in ways that comply with the FLSA and guidance off ered by the Department of Labor. Creating this structure may be challenging, but can be accomplished with the assistance of experienced counsel who is familiar with social media as well as wage and hour law.

Contact John Balitis, an attorney with

Fennemore Craig practicing in the labor and

employment area representing employers in

arbitration, litigation and administrative

proceedings, at [email protected]. Contact

Carrie Pixler-Ryerson, who practices in the

area of appeals as well as in labor and

employment at Fennemore Craig, at cryer-

[email protected].

JOHN BALITIS

CARRIE PIXLER-RYERSON

MEDIASOCIAL MEDIA IN THE WORKPLACE

Page 17: Inside Tucson Business 05/25/12

MAY 25, 2012 17InsideTucsonBusiness.com

TRAVEL

Economic impact study tells more about airport travelers By David Hatfi eldInside Tucson Business

Some more details are coming out about research for the economic impact study done this spring on Tucson International Airport:

• Passenger traffi c is equally balanced between visitors and residents.

• Among visitors coming to Tucson, 60 percent are leisure and 40 percent are busi-ness travelers.

• Leisure travelers account for 53 percent of revenues in the region coming in through airport visitors. Th ey stay an average 5.6 days, spending $69.11 per day, totalling more than $214,000 annually.

• Business travelers account for 47 per-cent of revenues, staying an average 3.6 days, spending $144.84 per day, which to-tals more than $192,000 per year.

As reported last month, the study found the airport has a total economic impact on the region of $3.25 billion. By way of a com-parison, a study using the same methodol-ogy completed in February this year found the airport in Reno, Nev., has a total eco-nomic impact of $2 billion on that region. A report issued in January found that the Ted Stevens Anchorage International Airport has a total economic impact of $1 billion on that region.

Th e University of Arizona MBA students and their instructors who did the study said the impact of Tucson’s airport is bolstered by a large number of airport tenants who contribute jobs and money to the local economy.

Th e graduating MBAs who did the eco-nomic impact study for the Tucson Airport Authority were Allen Sipe, who earned his degree in accounting; Catherin Weigand, who earned her degree in corporate fi nance; Christopher Northey, who earned his de-gree in marketing, and Greg Keller, who earned his degree in entrepreneurship.

Frontier returnsAs it said it would, Frontier Airlines has put

out a schedule reinstating fl ights between Tuc-son and Denver as of Nov. 15. In February, Frontier said it would switch Tucson to a “sea-sonal destination” and as of May 17 service was discontinued. Th e airline has published its schedule through Jan. 6.

When it returns in November, Southern Arizonans might be looking at a diff erent Fron-tier than they had known the past 11 years the airline served Tucson International. Faced with operating losses, Republic Airways Hold-ings said it is spinning off Frontier as a separate unit with an eye to possibly selling it.

Among changes, Frontier has drastically cut service in other cities, including Milwaukee where it had been the No. 2 busiest carrier.

Further, new management says they’re in-terested in emulating an “ultra low-fare” air-

line model that in the U.S. has been used suc-cessfully by Allegiant and Spirit, both of which fl y to Mesa Gateway Airport. Typically, the ul-tra low-fare airlines sell seats at a very low price but tack on charges for buying online, check-ing in, seat selection and baggage. Spirit made news this month when it said that in Novem-ber it will begin charging $100 at the gate for carry-on bags. Th e move is being made to en-courage passengers to pay the $45 carry-on fee before they get to the gate.

One other thing of note about Frontier’s re-turn in November, the airline will be using 99-passenger Embraer 190 jets instead of 138-seat Airbus A319s it had been using. Th e larger

planes have DirecTV, the smaller planes don’t.

Airport traffi c is upApril passenger traffi c at Tucson Interna-

tional Airport was up by less than 600 in April, that’s 0.2 percent, but it kept a three-month string going of year-over-year increases in pas-sengers at the airport. Th rough the fi rst four of 2012, that airport has served near 1.28 million passengers, a 2 percent increase from 2011.

Up the road at Phoenix Sky Harbor, which so far has reported passenger statistics for the fi rst three months of the year, March traffi c was up 1.7 percent from a year ago more than 3.8 million. Year-to-day, passenger totals are up

1.3 percent to 10.1 million.

American Airlines updateOn May 11 American Airlines offi cials re-

lented and said the airline would consider merger scenarios as a way to exit Chapter 11 bankruptcy. Last month, Tempe-based US Airways said it had tentative agreements for a merger with American’s three largest unions but so far there’s been no offi cial off er.

Th is week it was reported unsecured credi-tors and other debt holders formed ad hoc groups to evaluate potential merger scenarios.

Meanwhile testimony wraps up this week on American’s request to get rid of its labor agreements. U.S. Bankruptcy Judge Sean Lane has said he will rule on the request by June 22.

American is Tucson International Airport’s second busiest airline, last month accounting for 23 percent of passenger traffi c.

Fares are upAirlines’ strategy of cutting back capacity to

drive up fares seems to be working. Ticket pric-es for travel from June through August are 4.3 percent from what they were last year, accord-ing data compiled for Bloomberg by Airlines Reporting Corp. Year-to-date, airfares are up 3.1 percent.

With pent-up demand to travel, the report bodes well for the potential of profi tability among airlines.

Th e report was based on data from airlines, noting that neither United Continental Holdings nor American Airlines has released data yet.

Lesson learned If you haven’t checked lately you might

be surprised to learn that it’s no longer al-ways necessary to pay for a round-trip air-line ticket to get the lowest fare. Remember, the old Saturday night stay requirement? If you haven’t purchased your summertime leisure travel tickets and fi nd yourself hav-ing trouble getting fl ights that fi t your needs, try searching for one-way tickets.

A search this week for tickets from Tuc-son to Milwaukee, Wis., on specifi c days in January found that every airline fl ying be-tween the two cities had one-way tickets for sale at exactly half the price of a round-trip. Considering two diff erent airlines off ered off ered fl ights that met time constraints, two one-way tickets served their purpose.

And don’t even get me started on why a ticket from Milwaukee to Tucson is cheaper than from Chicago to Tucson, even though the fl ight from Milwaukee connects in Chi-cago with the very same fl ight that is coming to Tucson.

Contact David Hatfi eld at dhatfi [email protected] or (520) 295-4237. Inside Business Travel appears the fourth week of each month in Inside Tucson Business.

TUCSON INTERNATIONAL AIRPORT APRIL 2012 PASSENGER STATISTICS

April passenger counts through Tucson International Airport were up 0.2 percent over April 2011, the third consecutive monthly year-over-year gain. This chart shows each airlines’ passenger totals and market share for April 2012 compared with April 2011 and the totals for the fi rst four months of both years.

April 2012 April 2011 Change

Airline Nonstop destinations

Passengers Market Share

Passengers Market Share

Passengers %

Southwest 110,146 34.5% 106,724 33.5% +3,422 +3.2%Albuquerque, Baltimore (seasonal service ended April 9), Chicago Midway, Denver, Las Vegas, Los Angeles, San Diego

American 73,512 23.0% 71,937 22.6% +1,575 +2.2%Chicago O’Hare, Dallas-Fort Worth, Los Angeles

United (Continental)

47,718 15.0% 42,989 13.5% +4,729 +11.0%

Denver, Houston Intercontinental, Los Angeles, San Francisco

Delta 35,746 11.2% 35,474 11.1% +272 +0.8%Atlanta, Minneapolis-St. Paul, Salt Lake City

US Airways 32,499 10.2% 37,625 11.8% -5,126 -13.6%Phoenix

Frontier 10,091 3.2% 14,652 4.6% -4,561 -31.1%Denver (service suspended from May 18-Nov. 14)

Alaska 9,379 2.9% 9,106 2.9% +273 +3.0%Seattle

Monthly Total 319,091 318,507 +584 +0.2%

Year-to-date 1,277,765 1,252,916 +24,849 +2.0%Source: Tucson Airport Authority

Airline totals include passengers on branded fl ights operated by contracted carriers: American (American Eagle), Delta Connection (SkyWest), United Express (ExpressJet and SkyWest) and US Airways Express (Mesa and SkyWest).

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Connection (SkyWest), United Express (ExpressJet and SkyWest) and US Airways Express (Mesa and SkyWest).

Page 18: Inside Tucson Business 05/25/12

18 MAY 25, 2012 INSIDE TUCSON BUSINESS

TUCSON STOCK EXCHANGE

Stock market quotations of some publicly traded companies doing business in Southern Arizona

Company Name Symbol May 23 May 16 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.05 0.06 -0.01 0.04 0.97CDEX Inc CEXIQ.OB 0.01 0.01 0.00 0.01 0.01Providence Service Corp PRSC 13.02 13.34 -0.32 8.35 15.94UniSource Energy Corp (Tucson Electric Power) UNS 36.60 36.31 0.29 32.96 39.25

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 8.61 8.49 0.12 8.31 16.83AMR Corp (American Airlines) AAMRQ.PK 0.47 0.51 -0.04 0.20 8.89Augusta Resource Corp (Rosemont Mine) AZC 1.55 1.57 -0.02 1.52 5.55Bank Of America Corp BAC 7.17 7.11 0.06 4.92 11.92Bank of Montreal (M&I Bank) BMO 54.80 55.11 -0.31 51.83 65.79BBVA Compass BBVA 6.14 6.15 -0.01 5.96 12.13Berkshire Hathaway (Geico, Long Cos) BRK-B* 79.75 80.59 -0.84 65.35 83.72Best Buy Co Inc BBY 18.57 18.92 -0.35 17.35 32.85BOK Financial Corp (Bank of Arizona) BOKF 56.10 56.22 -0.12 43.77 59.59Bombardier Inc* (Bombardier Aerospace) BBDB 2.87 3.76 -0.89 3.30 7.25CB Richard Ellis Group CBG 16.65 16.19 0.46 12.30 27.10Citigroup Inc C 27.15 26.92 0.23 21.40 43.06Comcast Corp CMCSA 28.79 28.85 -0.06 19.19 30.88Community Health Sys (Northwest Med Cntrs) CYH 21.75 21.69 0.06 14.61 28.99Computer Sciences Corp CSC 26.67 26.42 0.25 22.80 44.31Convergys Corp CVG 13.51 13.28 0.23 8.49 14.23Costco Wholesale Corp COST 83.31 84.91 -1.60 70.22 92.10CenturyLink (Qwest Communications) CTL 38.78 38.62 0.16 31.16 43.35Cvs/Caremark (CVS pharmacy) CVS 44.79 45.16 -0.37 31.30 46.22Delta Air Lines DAL 10.74 11.39 -0.65 6.41 11.58Dillard Department Stores DDS 68.80 68.78 0.02 38.99 72.46Dover Corp (Sargent Controls & Aerospace) DOV 57.78 56.90 0.88 43.64 70.15DR Horton Inc DHI 16.87 17.06 -0.19 8.03 17.91Freeport-McMoRan (Phelps Dodge) FCX 32.73 32.57 0.16 28.85 56.78Granite Construction Inc GVA 23.09 23.45 -0.36 16.92 30.49Home Depot Inc HD 48.74 48.77 -0.03 28.13 52.88Honeywell Intl Inc HON 57.62 57.14 0.48 41.22 62.00IBM IBM 196.12 199.73 -3.61 157.13 210.69Iron Mountain IRM 29.04 29.90 -0.86 27.68 35.79Intuit Inc INTU 56.47 55.10 1.37 39.87 62.33Journal Communications (KGUN 9, KMXZ) JRN 4.39 4.19 0.20 2.69 5.72JP Morgan Chase & Co JPM 34.26 35.46 -1.20 25.73 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 30.50 30.78 -0.28 25.73 37.70KB Home KBH 7.58 7.69 -0.11 5.02 13.12Kohls Corp KSS 48.93 46.84 2.09 42.14 57.39Kroger Co (Fry's Food Stores) KR 22.16 22.22 -0.06 21.14 25.85Lee Enterprises (Arizona Daily Star) LEE 1.13 1.13 0.00 0.49 1.73Lennar Corporation LEN 28.41 29.27 -0.86 12.14 30.12Lowe's Cos (Lowe's Home Improvement) LOW 26.19 29.32 -3.13 18.07 32.29Loews Corp (Ventana Canyon Resort) L 39.22 39.11 0.11 32.90 42.64Macerich Co (Westcor, La Encantada) MAC 57.59 58.84 -1.25 38.64 62.83Macy's Inc M 37.05 37.29 -0.24 22.66 42.17Marriott Intl Inc MAR 38.11 38.57 -0.46 25.49 40.45Meritage Homes Corp MTH 29.88 29.30 0.58 13.68 30.00Northern Trust Corp NTRS 43.52 43.97 -0.45 33.20 49.06Northrop Grumman Corp NOC 58.64 59.57 -0.93 49.20 70.61Penney, J.C. JCP 27.26 26.75 0.51 23.44 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 9.30 9.49 -0.19 3.29 10.82Raytheon Co (Raytheon Missile Systems) RTN 50.26 51.13 -0.87 38.35 54.69Roche Holdings AG (Ventana Medical Systems) RHHBY 40.15 40.76 -0.61 34.02 40.36Safeway Inc SWY 18.84 18.76 0.08 15.93 24.77Sanofi -Aventis SA SNY 34.10 34.29 -0.19 30.98 40.58Sears Holdings (Sears, Kmart, Customer Care) SHLD 56.83 50.87 5.96 28.89 85.90SkyWest Inc SKYW 7.25 8.37 -1.12 7.15 15.54Southwest Airlines Co LUV 8.36 8.21 0.15 7.15 12.04Southwest Gas Corp SWX 41.58 42.36 -0.78 32.12 43.64Stantec Inc STN 29.32 29.91 -0.59 20.96 32.79Target Corp TGT 56.78 55.32 1.46 45.28 58.95TeleTech Holdings Inc TTEC 14.56 14.66 -0.10 14.04 22.39Texas Instruments Inc TXN 28.14 29.96 -1.82 24.34 35.30Time Warner Inc (AOL) TWX 34.36 35.27 -0.91 27.62 39.24Ual Corp (United Airlines) UAL 22.31 23.66 -1.35 15.51 26.50Union Pacifi c Corp UNP 112.49 112.00 0.49 77.73 117.40Apollo Group Inc (University of Phoenix) APOL 32.51 31.98 0.53 30.93 58.29US Airways Group Inc LCC 11.00 11.13 -0.13 3.96 11.73US Bancorp (US Bank) USB 31.09 31.06 0.03 20.10 32.98Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 64.58 59.19 5.39 48.31 62.24Walgreen Co WAG 31.29 32.78 -1.49 30.34 45.34Wells Fargo & Co WFC 31.74 31.97 -0.23 22.58 34.59Western Alliance Bancorp (Alliance Bank) WAL 8.43 8.40 0.03 4.44 9.20Zions Bancorp (National Bank of Arizona) ZION 19.12 18.81 0.31 13.18 24.71Data Source: Dow Jones Market Watch

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

FINANCEYOUR MONEY

Five fi nancial questions toanswer if you’re a Gen Xer

If you’re part of Generation X — the age cohort born between the mid-1960s and the early 1980s — you’re probably in one of the busiest phases of your life, as you’re well into your working years and, at the same time, busy raising a family. But just as you’re “multi-tasking” in your life, you’ll also need to address multiple fi nancial goals.

In seeking to accomplish your key objectives, you may be asking yourself a variety of questions, including the following:

• Should I contribute as much as possible to my IRA and 401(k)?

In a word, yes. Your earnings on a traditional Individual Retirement Account (IRA) and a 401(k) grow on a tax-deferred basis, so your money can accumulate faster than it would if placed in an investment on which you paid taxes every year. Plus, since you typically make 401(k) contributions with pretax dollars, the more you contrib-ute, the lower your taxable income. And your traditional IRA contributions may be tax-deductible, depending on your income.

If you meet income guidelines, you can contribute to a Roth IRA, which provides tax-free earnings, though there are conditions and limitations on amounts.

• Should I put away money for my kids’ college education?

It’s not easy to fund your retirement accounts plus save money for your children’s college education. Still, college is expensive, so if you feel strongly about helping to pay for the high costs of higher education, you may want to explore college funding vehicles, such as a 529 plan, which off ers tax advantages.

• Should I pay down my mortgage or invest those funds?

Most of us dream of freeing ourselves from a mortgage someday. So, as your career advances and your income rises, you may wonder if you should make bigger mortgage payments.

On one hand, there’s no denying the psychological benefi ts you’d receive from

paying off your mortgage. How-ever, you may want to consider putting any extra money into your invest-ment portfolio to help as you work toward your retirement goals. Work with your fi nancial advisor to

determine what may be most appropriate for your portfolio.

• Do I have enough insurance in place to protect my family?

You may have heard that you need seven or eight times your annual income in life insurance, but there’s really no “right” fi gure for everyone. You may want to consult with a fi nancial advisor to deter-mine how much life insurance is appropri-ate for your needs.

• Am I familiar with my parents’ fi nancial situation and estate considerations?

Now is the time to communicate with your parents about a variety of issues related to their fi nancial situation and estate plans. Th e more you know, the better positioned you’ll be to provide assistance and support if and when it’s needed. Just to name one example, you should inquire of your parents if they’ve designated a durable power of attorney to make fi nancial decisions for them in case they’re ever incapacitated.

By answering these questions, you can get a handle on all the fi nancial issues you face at your stage of life. It may seem challenging, but taking the time now can help you better position yourself to reach your fi nancial goals.

Contact Tim Beithon, a fi nancial

advisor with Edward Jones, at Tim.Beithon@

edwardjones.com or (520) 546-1839. Beithon’s

offi ce is at 9525 E. Old Spanish Trail, Suite 111.

TIM BEITHON

Page 19: Inside Tucson Business 05/25/12

MAY 25, 2012 19InsideTucsonBusiness.com

INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

In th uncertain housing market, one sec-tor that can be overlooked is remodeling. Due to the wave of foreclosures, tighter credit standards, and job conditions, there are potential home buyers who are frozen by indecision.

Others, however, see opportunity. With labor and materials at competitive prices, and contractors anxious for work, remodel-ing is an economical option for homeown-ers wanting to improve their lifestyle.

“Some embark on remodeling projects to make their surroundings more functional and enjoyable, while others want to increase their home’s resale value. Some want to take advantage of the myriad benefi ts green building off ers,” said David Godlewski, president of the Southern Arizona Home Builders Association (SAHBA).

“Th ere are those who want to make their homes roomier, or create a fl oor plan spe-cifi cally customized to their lifestyle or more accessible to the elderly. Still others want new amenities,” he added.

As National Home Remodeling Month comes to a conclusion, Godlewski stressed that “all remodelers aren’t equal.” SAHBA and the National Association of Home Builders recommend homeowners hire only licensed, professional remodelers. A good place to start is with the Arizona Regis-trar of Contractors Offi ce and the Better Business Bureau.

For referrals, SAHBA has a Remodelers Council, a diverse group of 41 members that includes remodelers, builders, designers, appliance and furniture dealers, landscap-

INSIDE REAL ESTATE & CONSTRUCTION

THE PULSE: TUCSON REAL ESTATE

5/14/2012 5/7/2012

Median Price $152,000 $125,000Active Listings 4,274 4,806New Listings 352 358Pending Sales 430 449Homes Closed 257 201Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

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

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

3/1 ARM 2.88% 3.25%APR 2.88% 3.25% 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), Hotchkiss Financial Inc. P.O. Box 43712 Tucson, AZ 85733. (520) 324-0000. MB #0905432. Rates are subject to change without notice based upon market conditions.

5/22/2012

Remodeling is an economical option for homeowners looking to improve their lifestyle, such as this extensive porch project expansion at a north Tucson home by McCaleb Construction.

ers and designers. Th e group operates un-der a code of professional ethics and ac-countability.

“If you’re investing in your home, create the most value for your dollar by making sure the work gets done right,” said Godlews-ki.

When screening remodelers, ask how long they have been in business. Ask if they specialize and what types of jobs they have recently completed. Ask to see a current or completed project and talk with clients about their experiences with the company. Ask these customers if they would hire the fi rm again.

In addition to their professional skills, members of the council also have access to information on tax credits and rebates. Hir-ing a quality remodeler “can provide in-creased value to a project,” Godlewski said.

Information about the SAHBA Remodel-ers Council is online at www.sahba.org/committees .

2 zips sell out againFor the second consecutive month, ev-

ery home listed in two zip codes sold — and then some. Due to a quirk in timing, more homes sold in zip codes 85756 and 85757 than were offi cially considered active list-

ings, according to the Tucson Association of Realtors Multiple Listing Service.

In zip code 85756, around Tucson Inter-national Airport between Interstates 19 and 10, all 34 active listings sold plus six homes not offi cially listed. In zip code 85757, the far west side near Ryan Airfi eld south of Ajo Way, 23 homes sold with only 18 being post-ed in the offi cial inventory.

In both neighborhoods, the availability of homes priced near or under $100,000 drove the higher sales. For the entire mar-ket, the April median selling price was $134,000 and the average price was $175,766, according to the Realtors report.

In April, the most listings were 235 in Vail, followed by 233 listings on the far northeast side near Sabino Canyon in zip code 85750 and 226 in Catalina Foothills zip code 85718.

Buyer sentiment shiftsJonathan Roof, vice president of Mutual

of Omaha Bank, closely follows the housing market and recently pointed out an interest-ing analysis from the Arizona State Univer-sity W.P. Cary School of Business. Th e report noted “it seems that almost overnight the supply of low-cost homes has disappeared” in the Tucson and Phoenix markets.

Mortgage delinquencies and foreclo-sures are declining and many lower-priced homes are attracting multiple off ers.

Th e Tucson Association of Realtors fi g-ures there is about a three-month supply of homes, at about 3,800 units. Clearly, the lowest-priced homes sell fastest and in that category, there is only about one month’s worth of inventory in Tucson.

Th e ASU report concluded that there is a major lesson to be learned: the sudden dis-appearance of low-priced inventory showed how fast buyer sentiment can shift.

Sales and leases• Store Capital Acquisitions LLC pur-

chased a 21,878-square-foot, free-standing retail building at 7671 E. Broadway for $5.5 million from E&R Cotton Center LLC doing business as La-Z-Boy Furniture Galleries. Th e buyer is leasing the building back to La-Z-Boy. Th e sale-leaseback transaction was handled by Velocity Retail Group and Ross Brown Partners, both of Phoenix.

• Jeff erson Capital Property Holdings purchased College Place apartments, 1601 N. Oracle Road, for $3 million from ROI Properties LLC, as receiver for Oracle Inn-keeper LLC. Th e property consists of 196 units on 270,600 square feet of land. Th e sell-er was represented by Beth Jo Zeitzer, ROI Properties LLC. Th e buyer was represented by Hank Amos, Tucson Realty & Trust Co.

• Meritage Homes purchased 49 platted lots in Tangerine Crossing Block 3, northeast of West Tangerine and North Th orndale roads, Marana, for $1.3 million from Tanger-ine Road Associates, represented by Will White, Land Advisors Organization. Th e ac-quisition was the second this month along the Tangerine Corridor for Meritage Homes. It previously purchased 53 platted lots for $1.59 million in Sky Ranch.

• DR PM Holdings USA LLC purchased a 7,000 square-foot retail showroom and car lot at 4888 E. 22nd St. for $685,000 from AAA Climate Control LLC, represented by An-drew Sternberg and Robert Nolan, Oxford Realty Advisors. Th e buyer was represented by Tom De Soller, AZ First Properties LLC.

• Oracle Ft. Lowell LLC purchased a 4,593 square-foot former auto repair build-ing at 3200 N. Oracle Road for $425,000 from Bank of the West, represented by Brandon Rodgers and Peter Douglas, Picor Commer-cial Real Estate Services.

• MMK Properties LLC purchased a 1,436 square-foot medical condominium offi ce at 1601 N. Tucson Blvd., Suite 7, for $175,000 from Niadyne Pharma Inc., rep-resented by Tari Auletta, Grubb & Ellis. Th e buyer was represented by Andrew Stern-berg, Oxford Realty Advisors.

• Northern Arizona University leased 11,219 square feet at 3895 N. Business Cen-ter Drive, Suites 100 and 120, from NTBC Trust Partners LLC, represented by Rob Glaser and Paul Hooker, Picor. Th e tenant was represented by Mike Gordon with Cresa Partners.

• Oscar Campas leased 2,020 square feet at 5969 S. Belvedere Ave. from DeCook Properties LLC. Th e transaction was han-dled by Chuck Corriere of Keller Williams Southern Arizona.

Email news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.

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Uncertain home market, competitive prices boost remodeling

Page 20: Inside Tucson Business 05/25/12

20 MAY 25, 2012 INSIDE TUCSON BUSINESS

One day back in 2009 or 2010, I was having lunch with a man who at the time was among the higher-ranking Tucson-based executives for one of the “too big to fail” banks. We had become more than just business acquaintances and were comfortable talking socially about family, friends and business.

In one of my bolder moments, I suggested a problem that could arise from the government’s stepped-up oversight of banking would be that decisions dictated by regulators meant his employees were no longer empowered to think for themselves. As a result, he would have a tougher time judging whether he had smart people or dumb people working for him.

I thought I might have gone too far when he didn’t respond immediately but looked me straight in the eyes as he thought about it.

“You might be right,” he fi nally said.He is still with the bank and doing well enough to have been

promoted. I thought of that exchange after James Dimon, chairman and

CEO of J.P. Morgan Chase, acknowledged his bank had lost at least $2 billion in trades that, as he put it, were “fl awed, com-plex, poorly reviewed, poorly executed and badly monitored.” Within hours, Ina Drew, the woman who had been the bank’s chief investment offi cer the past seven years, was gone. She was thought of well enough that her compensation totaled $31.5 million in 2010 and 2011.

So if a decision-maker of her high-ranking caliber is capable of such a fi asco, there’s reason to wonder what has been learned from the 2008 economic meltdown. It has been suggested what J.P. Morgan Chase did was of questionable legality but certainly there was no system in place to stop it. Indeed, some are arguing that the only reason it became public is because of the loss. Had the gamble played out as a profi t, nobody would have been the wiser.

I suspect my banking friend knows more about the employ-ees under him and enough about them to think they wouldn’t be tempted to do such maneuvers. Th e trouble is, thanks to a false sense of security given to us by government regulators, we can’t be sure.

Indeed, people at other banks have told me that some enforcement is based on models and formulas and fails to take into consideration other meaningful information. Worse, it can be unpredictable. A loan that would have been rejected a year ago, is now OK.

Why? Who knows? Th ere should be somebody at a bank we could ask.

Kudos to Roger Yohem Congratulations to Inside Tucson Business’s Roger Yohem on

winning a third-place award of excellence from the Arizona Press Club May 19 for his work on a commercial real estate special section last year. Chances are you’ve read the self-congratulatory articles in other publications about their awards but I wanted to take special notice of Yohem’s award because it comes from an organization that doesn’t often reward business publications.

Contact David Hatfi eld at dhatfi [email protected]

or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Step right up, smart people in banking

EDITORIAL

Dilemma for voters in CD 8Early voting is underway in the June 12 special

election to fi ll the last six months of former U.S. Rep. Gabrielle Giff ords’ term in Congressional District 8 (CD 8). In reality, the term will be even shorter with the U.S. House of Representatives scheduled to take off for half of September, most of October and the fi rst two weeks of November. Th en there’s the holiday season.

It’s almost enough to make one wonder, why bother?Good question.Th ree candidates’ names are on the special election

ballot but let’s face it, the Green Party’s Charlie Manola-kis isn’t going to get elected. So there are really only two candidates: Democrat Ron Barber and Republican Jesse Kelly. Barber headed Giff ords’ district offi ce until last year. Kelly, who is a project manager for his family’s business, Don Kelly Construction, came within 4,000 votes — less than a 1.4 percent margin — of beating Giff ords in 2010.

Th ere are concerns about both candidates, even from within their respective political parties.

Democrats are acting genuinely concerned about the challenge their candidate is facing and Republicans say polls show their candidate may well win this time.

Although Barber has done well in fund-raising, he is having a tough time now getting voters motivated, particularly in a special election when turnout can be low.

Barber also has found himself in a defensive posture on President Obama’s healthcare reform legislation to the point he came across almost John Kerry-like — I voted for it before I voted against it — in trying to explain his position. Barber says that while his former boss voted in favor of healthcare reform that shouldn’t be construed as his stance and now, he says the

legislation needs to be changed.Th ere is also ill-will among Democrats over Barber’s

initial indication that he would seek to fi ll out Giff ords’ term in CD 8 but wouldn’t pursue the seat in this year’s regular election in the newly defi ned CD 2 that takes in most of the same area. Democrats who pledged their support to him and intended to seek the CD 2 seat were double-crossed when Barber said he would run in the regular election.

Meanwhile, Kelly’s surging campaign quieted Republicans who thought the tea party candidate wouldn’t dare try to make it to be a three-time loser. It remains to be seen what will become of the three other candidates who ran in the Republican special primary election.

So what happens as a result of this election?Barber is not the long-term solution for Southern

Arizona. At age 66, he can’t build the longevity that is needed to make a diff erence in Washington, D.C.

For Kelly it’s the opposite. At age 30, his success has come through luck and happenstance. He hasn’t shown an interest in cooperating or trying to work with others, which is why there are no big-name Republicans actively campaigning for him.

Th e unfortunate outcome of this special election is that one of these candidates will win and essentially be able to run as an incumbent later this year.

One solution for voters in CD 8 is to wait to see what candidates fi le next week to run in the new CD 2. Pick one you believe is best for the future and set your sights on getting that person elected.

If you’ve got a better idea, let us know because the CD 8 special election is a dilemma without a satisfying solution.

Page 21: Inside Tucson Business 05/25/12

MAY 25, 2012 21InsideTucsonBusiness.com

OPINIONBUSINESS INK

Memorial Day in Washington, D.C., is an unforgettable way to rememberMemorial Day has a simple purpose: to

honor those who’ve served in the Armed Forces fi ghting to defend the freedoms we enjoy in the United States. Years ago while walking toward the World War II Memorial in Washington, D.C., on Memorial Day, the furthest thing from my mind was fulfi lling that purpose.

It didn’t take much to change that mindset.In 2006, we took a family vacation to D.C. in

late May. Although I had been there several times on business, it was the fi rst visit for my wife and our young daughter. Our list of must-see attractions was long but organized, and we methodically moved through our touristy agenda.

National Archives. Check. White House tour. Check. And on to Arlington National Cemetery, Mount Vernon, the U.S. Supreme Court, Smithsonian, National Spy Museum, Ford’s Th eater, et. al.

While at the U.S. Capitol, a congressional college intern from Tucson, let’s call him Josh, gave us a personal 90-minute tour. As we were fi nishing, he cautiously asked if we’d like to see a piece of Americana that was “off limits.” It was rare, very old and locked up in seclusion.

He had an intense historical curiosity about the relic and for weeks, had been looking for an opportunity to slip away. With a young child in tow, we were his cover.

Josh led us through a maze of halls, marble staircases, unmarked doors and small elevators far from the public areas. To those with the uniformed authority to stop him, he boldly fl ashed his security badge

Finally, we stood in front of a small, dimly lit room. Behind iron jail-like bars, the only thing there was President Lincoln’s death bier, a wooden pedestal built by government carpenters in April 1865.

Josh said it had held Lincoln’s coffi n in the building’s rotunda and the White House. We were greatly impressed, and also excited to be standing in a secret part of the Capitol’s basement.

Sunday night, we headed for the National Memorial Day Concert on the Capitol’s lawn. Th e crowds were massive, easily some 200,000 people, and we were still blocks away when the music started. We found an open spot way in the back off to the side.

Lee Ann Womack sang “America the Beautiful” and we heard some country tunes from Big & Rich. We couldn’t see the stage or the giant TV screens so we left before the fi reworks. Th e next day, Memorial Day, was another full schedule.

Up early, we avoided the big parade as we made our way to see the Washington Monument. From there, we walked across the National Mall’s vast grass fi elds toward the Refl ecting Pool. Our next stop was the Lincoln Memorial.

From a distance, we noticed a lot of activity at a plaza at the head of the Refl ecting Pool. It

featured two large fountains surround-ed by tall pillars. We didn’t know what it was until we stepped onto the plaza and saw the sign: National World War II Memorial.

As children of World War II veterans, my wife and I just froze.

Long-forgotten memories of our fathers fl ashed through our minds.

On opposite ends of the plaza were two arches marked Atlantic and Pacifi c, the war’s two great theaters of battle. Th e white granite pillars, 56 in all, stood in two semicircles leading away from the arches. Each pillar was dedicated to a state and various U.S. war allies and territories.

Puzzled, we watched in silent wonder the bustle within the memorial. Many small family groups and individuals were moving about, searching out specifi c pillars. Obviously, they were looking for their home state but we didn’t know why.

Once at the right spot, they unpacked boxes, blankets and bags. Kneeling down, they laid out items on the concrete apron, items we could not see from where we were standing. Most cried, many prayed and some stood up enwrapped in each other’s arms.

Th eir containers emptied, no one moved. Quietly, the National Park Service rangers approached and talked with several groups.

Curious, we walked toward a large pile of items across the plaza. We saw dozens of military uniforms, medals, helmets, rifl es, photo albums and offi cial government documents such as enlistment, promotion and discharge papers.

Next to another post was a tattered shoe box full of a soldier’s letters. We respectfully looked through it and determined that most were love notes to his girlfriend and future wife.

Also scattered about were several Ameri-can fl ags, folded with precision into triangular glass cases. At one time, each had been draped over a coffi n.

One couple told us they had found their grandfather’s rucksack in the basement, forgotten, no longer wanted, but full of stuff from the war. Leaving it here was the best way they could think of to honor him, like the others

that day who were dropping off keepsakes at the memorial in tribute to their loved ones.

Attached to many of the mementos were letters to the U.S. government, detailing their relative’s military history and service record. Most closed with scribbles of love and longing for days gone by.

I don’t recall who started to cry fi rst. And although our daughter was too young to understand it all, she felt our emotional sadness. Soon, her tears mixed with ours on the pavement.

A park ranger came over to us. He said hundreds of World War II veterans were dying each day and their families had turned the plaza into a shrine. Since it opened in 2004, people had made a pilgrimage to the site on Memorial Day to leave behind pieces of their family’s patriotic legacies.

Every item is collected by the rangers and placed into storage to be archived. Th e ranger said more than 2 million pieces had been collected and the government is not sure what to do with it all.

Th en he asked about our fathers, did they serve?

My dad enlisted in the Air Corps. Two of his brothers served in the regular Army. Dad was headed overseas until they found out he could type. He was immediately yanked from the ranks and assigned to supplies and requisi-tions. He stayed in the states and became a master sergeant.

My wife’s father joined the Navy and served in the Atlantic and Pacifi c theaters. His war time was more dangerous, as he was sent ashore in advance of U.S. troops to locate and cut enemy lines of communications.

Both survived the war and returned home to live long lives as hard-working, blue collar family men.

Th e ranger suggested it would be appropri-ate that we do something to honor their service. After some discussion, he directed us to a nearby gift shop. For each dad, we bought a small American fl ag and a patriotic postcard. With borrowed pens on top of an ice cream cooler, we wrote our tributes.

At the Ohio pillar, we laid down the pieces. We stared at the fl ags for a long time. It wasn’t much to look at but our thoughts were full of warm memories. Th ere was nothing to say.

Overcome by the moment, my wife collapsed to the ground and sobbed. I kneeled beside her, held her shaking hand. Th e tears came. Our daughter squeezed in between us to snuggle up to her mom.

Th e words on the cards were nothing monumental, just a few thoughts from our hearts, that we loved and missed our dads, two great American heroes.

Contact Roger Yohem at ryohem@

azbiz.com or (520) 295-4254. His Business Ink

appears biweekly and weighs in on local

political, social and business issues.

ROGER YOHEM

Yohe

m fa

mily

pho

tos

Top: The World War II Memorial in Washing-ton, D.C., has become a shrine to military veterans whose families have left over 2 million items in honor of their loved ones.

Left: In 1941 while serving in World War II, Roger Yohem’s father took this photo of the Tucson Train Depot during a layover. The train was enroute from an airfi eld in Texas to California.

Page 22: Inside Tucson Business 05/25/12

22 MAY 25, 2012 INSIDE TUCSON BUSINESS

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OPINIONGUEST OPINION

For the high school class of 2012, there’s an app for that Editor’s note: Th is is a condensed verion of

Superintendent Nic Clement’s speech this

month to graduating seniors at Flowing Wells

High School. Recently, two seniors visited my offi ce

to ask if I would be their guest speaker at baccalaureate. I shared that I was honored and would accept their invitation if they would help me develop some ideas unique to their class. As I opened my laptop to take some notes, one of the students said, “Dr. Clement, with all due respect, how old is that laptop?” Funny, now that I think about it, this laptop is as old as you. Th ey went on to give me the fi rst piece of advice “You might want to upgrade your technology if you are going to speak and connect with us, we are the iGenera-tion not the Windows 95 Generation”.

As hard as it is for me to change, I took their advice and purchased an iPad. Im-mediately, everyone said I needed to get apps. I had a hard enough time turning it on and fi nding the plug for my mouse, let

alone downloading apps. Not wanting to let the seniors down, I conquered my “iPad-aphobia” and actually creat-ed a couple of apps custom made for the Class of 2012.

• Yearbook Translation app — It has been 40

years since I graduated from high school and when I look back at my yearbook, not only are the pictures frightening — Elvis Presley-type sideburns and big hair, really big hair — but I cannot decipher what my friends wrote on the signature page. My fi rst app would take and translate the slang of the day into current terms. For example, punch in the year 1972 and the word “totally” translates to “cool” and the word “rad” translates to “awesome.” Using this app the Class of 2012 in 2052 would

type in words from their yearbooks like “swagg” — and have it translated to cool — and “beast” — translated, awesome.

• Legendary Teacher app — I thought it would be totally rad if I created an app that would instantly bring up a video of a legendary teacher from high school who could give you advice or get you moti-vated when things were getting tough. For example, right now I could use some advice from Mr. Potts, my high school speech and debate teacher — who is still teaching after 47 years — in how to prepare this speech. I can almost hear him saying, “Remember tell them what you are going to tell them, tell them, and then tell them what you told them. Don’t forget, keep it short, and make it fun!” When Flowing Wells High School seniors were asked to identify a legend-ary teacher for this app, Mr. Chuck Taylor was high on their list. His advice, “Don’t panic, never give up.” We all need some legendary teacher advice in our lives.

• Memorable Moment app — Be

prepared to tear up and don’t let it hit your iPad — Prom 1972 and No. 1 song in the nation started playing, “Song Sung Blue” by Neil Diamond. Lighters came out, swaying in the gym in our powder blue tuxes. Class of 2012, fi rst day of kindergarten, honor roll assembly, fi rst concert with a trombone bigger than me, pep assemblies, science fair blue ribbon, getting your college acceptance letter, this app will need a lot of memory.

• Secret to Success app — Touch this app and your yearbook picture appears along with this caption: Class of 2012, you are the secret to your own success. Set goals, fi nish what you start and do it with heart and pas-sion. You don’t need an app for that!

Contact Nic Clement, superintendent

of the Flowing Wells United School District,

at clementn@fl owingwells.k12.az.us

NIC CLEMENT

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Page 23: Inside Tucson Business 05/25/12

MAY 25, 2012 23InsideTucsonBusiness.com

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Page 24: Inside Tucson Business 05/25/12

24 MAY 25, 2012 INSIDE TUCSON BUSINESS

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