Inside Tucson Business 07/27/12

Housing RealityHousing market improving, but not booming

Page 18

Getting in the ZoneOro Valley looks to streamline development process

Page 5

Th e Big KahunaSustaining Edge Solutions lands big contract in Hawaii

Page 4

Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • JULY 27, 2012 • VOL. 21, NO. 61 • $1

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SOARS IN SOUTHERN

ARIZONA

PAGE 8

Aeronautical university seeing success and growth

City, recycler turn refuse into profi ts at new recycling center PAGE 3

Despite bloody headlines, Americans still going to MexicoBy Lourdes MedranoTh e Christian Science Monitor

While Mexico has grabbed head-lines for beheadings and mass graves that have been uncovered across the country, tourism hasn’t materially suf-fered. Last year, a record 22.7 million visitors chose Mexico as a tourist des-tination, according to Mexico’s Minis-try of Tourism.

In fact, only 7 percent of American retirees who live or travel often to Mex-ico have been scared off by violence, according to the International Com-munity Foundation. Most retirees are

neither reducing the frequency nor length of their trips to Mexico.

Tourism has continued in part be-cause violence has been contained. It has spread from a confl ict largely con-centrated on the U.S.-Mexico border to several hotspots within the country. Places including Cancun and Mexico City have been largely untouched.

Th e Mexican government has long maintained the vast majority of deaths have been between rival drug traffi ck-ers, a feeling shared by at least some U.S. expatriates.

“Most feel that the victims have had connections to the drug business or

sometimes targets were part of an ex-tended family and a message is being sent,” says David Truly, who has stud-ied migration patterns in Jalisco state, which has Guadalajara as its capital.

“When these things happen many leave … but others understand the re-ality of the situation and that they are not at risk.... Why would the cartels want to target Americans?” says Truly, a retired geography professor. “Th is might bring more attention from the U.S.”

According to the U.S. State Depart-ment, 424 Americans were reported as killed in homicides in Mexico be-

tween 2006 and 2011, compared to 945 in all other countries in the same time period.

Th at refl ects the proximity of Mex-ico to the U.S. and the frequency with which Americans travel there. Some at the border can walk from their home-towns and be in Mexico in less than 10 minutes. But it also underscores the reach of violence. Th e number of Americans reported as murdered to the State Department nearly quadru-pled from 35 in 2007 to 120 in 2011, according to the U.S. State Depart-ment travel advisory for Mexico from February.

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NEWS

City’s new recycler starts processing, accepting more materialBy Patrick McNamaraInside Tucson Business

Th e city of Tucson’s new contractor for recyclable processing has started opera-tions. North Carolina-based ReCommunity won the city contract to process recyclables the city’s Environmental Services depart-ment collect from residential customers.

“What we more or less will be doing is a sizing and sorting business,” said Will Her-zog, business development manager with ReCommunity.

Th e newly constructed 57,000 square-foot facility at 3780 E. Ajo Way, at the southwest corner of Alvernon Way, has the capacity to process 80,000 tons of recyclables per year, Herzog said. Th e city is expected to bring in about 45,000 tons per year.

As recyclable-laden trucks enter the fa-cility, they drive across scales to monitor the incoming materials. Once the loads are jet-tisoned, the sorting and sizing begins.

Front-end loaders scoop the bottles, cans, paper and plastic onto conveyor belts that send the material into the sorting facility.

From there, a series of mechanical and manned sorting stations segregate the re-cyclable materials for further processing. At the end of the cycle, the materials are pressed into bales, loaded onto trucks and carted away for sale.

Th e contract with the city includes a $30-per ton fee paid to ReCommunity for pro-cessing. Th e payments are capped at $1.15 million per year.

In addition, ReCommunity will equally split with the city the proceeds from the sale of the recyclables. Th at could result in more than $3 million of revenue annually for the city, based on a sample month ReCommu-nity provided in a bid proposal.

“If it’s something that we’re going to take and sort, we’re going to sell it,” Herzog said. “Everything that goes out of our facility as trash is nothing but a cost to us.”

Some of the largest markets for recycla-bles are aluminum and paper, he said.

“Paper gets made into paper, aluminum cans get made back into aluminum cans,” Herzog said.

Also under the new contract, Tucson residents are able to put more types of recy-clable material in their blue bins.

Up to now, the contractor the city used would accept only plastics numbered one or two. Th e numbers are usually found on the underside of containers inside a triangle in-dicating the material is recyclable.

ReCommunity will accept plastics num-bered from one to seven. Th is includes materials like those used in standard water bottles, milk jugs, household cleaners, fi ve-gallon water jugs, CD cases, clamshell cases, yogurt tubs and lotion bottles.

Plastic bags, such as those from most grocery stores, still are not accepted. Herzog said bags can be recycled but the cost to do so does not make it profi table.

ReCommunity’s contract with the city is for 15 years with the possibility to renew for fi ve more.

Th e agreement took eff ect July 1, al-though the Tucson facility did not begin pro-cessing material until last week. For the fi rst part of the month, ReCommunity hauled re-cyclables at its expense to one of its facilities in the Phoenix area.

With about 35,000 tons of available ca-pacity beyond what the city is using, Herzog said his company will likely seek to fi ll it with contracts with garbage hauling companies.

Initially, about 40 people are work-ing at the facility. Th e new building also is equipped for public education programs, which Herzog said the company intends to begin in cooperation with ongoing eff orts from the city.

Contact reporter Patrick McNamara at

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

ReCommunity has a capacity of 80,000 tons per year.

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Pentagon boosts Raytheonmissile contract by $925M

Raytheon’s Missile Systems has received a $925 million contract order from the Pen-tagon for work related to naval missiles that could be used to destroy longer-range mis-siles such as those that have been launched from North Korea.

Th e U.S. Department of Defense an-nounced the contract Wednesday (July 25). Raytheon already had a $583 million re-search and development and missile testing contract via the Missile Defense Agency.

Th e new award brings the total for the project to $1.5 billion.

Th e contract calls for Raytheon to devel-op, design and test the Standard Missile-3 Block IIA and have it rolled out by 2017.

Th e missile could be launched from ships to destroy other longer range missiles. Th e program is a joint venture of the United States and Japan, according to the Reuters news service.

Tucson unemployment raterises to 7.7% in June

Tucson’s unemployment rate in June was 7.7 percent, up from 7.2 percent in May but down from 9.1 percent in June 2011, ac-cording to the Arizona Department of Ad-ministration.

Seasonal job losses in June are typical in Arizona but this year’s losses were milder than in recent years, according to the stat-isticians. Most of the losses were in govern-ment jobs due to the end of the school year. To some extent the losses were softened by greater losses in May due to changes made by many school districts in the state that ended the school year earlier.

Th is was also the fourth consecutive June for job losses in the private sector, however, this year’s declines were smaller than in any of the previous years.

Th e Tucson unemployment rate is not seasonally adjusted so year-over-year com-parisons are more appropriate than month-to-month changes. Compared to June 2011, the total available workforce in the Tucson region was down 7.5 percent to 455,200. Th e number of people with jobs was down 0.3 percent to 420,300.

Arizona’s state-wide unemployment rate remained unchaged at 8.2 percent for a second consecutive month. Th e U.S. unem-ployment rate was also 8.2 percent.


NEWS

Tucson’s Sustaining Edge Solutions lands big kahunaBy David PittmanInside Tucson Business

Sustaining Edge Solutions Inc., a Tucson-based management consulting and training fi rm, has landed the big kahuna, it’s biggest contract ever, at six-fi gures.

Hawaii Gas Company, which serves about 70,000 residential and commercial custom-ers on the six major Hawaiian Islands, literally goes by the name Th e Gas Company (TGC) in Hawaii. In business since 1904, it has more than 300 employees.

TGC has hired Sustaining Edge Solu-tions to design, develop and implement a process leading to ISO 9001 certifi cation for the company. It is an international quality management standard that has been set by the International Organiza-tion Standardization in Geneva, Switzerland. Th e standards encourage effi ciency, save operat-ing costs and increase profi ts.

Walter Tighe, presi-dent, owner and founder of Sustaining Edge Solutions, has 24 years’ experience in business systems improvement in both manufacturing and transactional environments in government, defense, au-tomotive, semiconductor, customer service, electronics, mechanical, medical, logistical, aerospace and charitable organizations. With the addition of Hawaii Gas as a client, Tighe adds utilities to that list.

In the 10 years he has run Sustaining Edge Solutions, the company’s customers in Ari-zona, California, Colorado, New Mexico, Ne-vada, Texas and Utah have included Intel, Dial Corp., General Dynamics, Universal Avionics and Solon Corp.

Mike Futrell, executive vice president of TGC, said the company embarked on the ISO 9001 process to improve quality, customer service, employee relations and overall pro-duction – and to sustain those improvements for decades to come. Doing so, he said, would result in long-term improvement to TGC’s bottom-line profi tability.

Sustaining Edge Solutions was selected to lead the eff ort because it has “the right bal-ance of technical expertise, experience and personal customer service,” Futrell said.

Lance Lam, division manager of Quality Assurance & Compliance for TGC, was also impressed with Tighe and his company. “Walter and Sustaining Edge Solutions pro-vided through website, newsletters and direct contact an in-depth look on how companies can benefi t from an ISO 9001 certifi cation,” he said.

It is expected it will take 18 to 24 months to

complete the ISO 9001 certifi cation project for Hawaii Gas Co. In that time, Tighe expects to make seven to nine trips to Hawaii, with each visit lasting for one or two weeks.

“It’s tough duty, but somebody has to do it,” Tighe quipped.

Hawaii Gas Company owns and operates the only synthetic natural gas (SNG) manu-facturing plant of its kind in the U.S. Th e plant makes SNG from byproducts of imported pe-troleum that is refi ned and distributed to its customers in metropolitan Honolulu through a 1,100-mile pipeline network. Th e company supplies liquefi ed petroleum gas, or propane, to commercial, residential utility and non-utility customers statewide.

TGC is a wholly owned subsidiary of Mac-quarie Infrastructure Co., a publicly traded (New York Stock Exchange: MIC) fi rm that owns a diversifi ed group of infrastructure businesses.

Tighe said companies go through quality management processes for a variety of rea-sons. He called TGC’s motivation “an enlight-ened management decision.”

“A lot of companies do this because they are being told to do this by a large company or a government entity that is requiring it as a

condition of doing business,” Tighe said. “But it is the companies that take the certifi cation and do more with it than just hang it on the wall that get the most benefi t. Th e Gas Co. is one of these companies. Th ey realize the benefi ts that will come from using a globally recognized standard as a tool to analyze their systems and processes and improve customer satisfaction.”

Tighe said the process will result in savings for Hawaii Gas Company but he said it’s im-possible to predict how much.

“I’ve worked with some companies that have saved 60 percent cycle time or reduced rework by 40 percent or more. But no two companies are alike,” he said. “Some are more effi cient or eff ective than others. But I have never, ever, worked with a client that didn’t achieve signifi cant results. Anytime you examine a system, put it on paper, break it down and analyze it — you are going to identify ways to improve it, which always re-sults in improved profi ts for the company.”

Contact David Pittman, a freelance

writer, at [email protected] or (520) 551-

2735.

Lance Lam, left, division manager of quality assurance and compliance for Hawaii Gas Com-pany, and Walter Tighe, president and owner of Sustaining Edge Solutions Inc., at Hawaii Gas Company’s headquarters in Honolulu.

BIZ FACTS

Sustaining Edge Solutions, Inc.www.sustainingedge.com525 N. Bonita Ave.(520) 572-9642

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State rejects added reasons for medical marijuana use

Th e Arizona Department of Health Servic-es has rejected petitions to add four conditions to the state’s medical marijuana program.

Medical marijuana cardholders and care-givers had requested the state health depart-ment add migraines, generalized anxiety dis-order, depression and post traumatic stress disorder to the list of approved conditions that can be treated by medical marijuana.

Will Humble, director of the Department of Health Services, said there is insuffi cient, valid, scientifi c evidence that justifi es add-ing the four conditions to the program.

Gas prices fall to their lowest of 2012

Gas prices continued to fall over the past week, with the average price in Tucson falling to $3.19 per gallon this week from $3.22½ per gallon a week ago, according to AAA Arizona’s Fuel Gauge survey. It is low-est average price of the year.

Th is marks 16 consecutive weeks the price has continued to fall in Arizona. Th e falling prices the past three weeks has run counter to what’s happening nationally where retail gas prices have been on the rise for the past three weeks.

Statewide, the average gas price this was $3.30 a gallon, down about 2 cents a gallon in the past week. Tucson continues to have the lowest average in Arizona.

Nationally, the average rose to $3.48½ a gallon, from $3.42½ a week ago.

Despite the increases elsewhere, gas prices this year remain below where they were a year ago at this time when the na-tional average was $3.69½ a gallon, the Arizona average was $3.63 a gallon and the Tucson average was $3.28 per gallon.

Tucson Chamber grades state lawmakers’ work

Five Tucson area state lawmakers received high grades for their work in the Leigslature this year from the Tucson Metro Chamber.

Th e 2012 Arizona Legislature Report Card is based on the voting records of Southern Arizona’s legislators on pro-business poli-cies on which the chamber advocated a po-sition. Lawmakers were awarded a percent score based on how often they voted in ac-cord with chamber positions.

Th e highest scorer was Republican Sen. Al Melvin, who received a score of 90. High scorers i the state House were Reps. David Gowan, who received a score of 88, and Bruce Wheeler, Ted Vogt and Marcario Saldate, all who whom received scores of 84. Gowan and Vogt are Republicans and Wheeler and Saldate are Democrats.

At the other end of the scale, low scores went to Sens. Paula Aboud and Linda Lopez, both Democrats who received scores of 68.

Gov. Jan Brewer received a score of 81.Th e full report is at TucsonAdvocacy.com.


NEWS

Oro Valley looks to streamline process to attract new biotechsBy Patrick McNamaraInside Tucson Business

With an eye toward expanding its clus-ter of medical-research fi rms, Oro Valley offi cials have begun discussions about ways to streamline the development pro-cess to attract more biotech companies.

“We’re trying to create our own success and our own destiny,” said Oro Valley May-or Satish Hiremath.

Th e crux of the plan, which in its early stages has the support of the town council, would include amending the zoning code to establish an economic expansion zone in one area of Rancho Vistoso in northern Oro Valley.

Th at would require the council to amend the town’s zoning code to create an alternative process for development sub-mittal, review and approval for businesses in what’s known as Rancho Vistoso Neigh-borhood 3, an area primarily along Inno-vation Park Drive. It’s an area that’s already home to Roche Group’s Ventana Medical Systems and Sanofi , two of the world’s largest medical-research companies.

Currently in Oro Valley, most develop-ment projects require at least two neigh-borhood meetings in addition to public hearings and meetings with town boards and the town council to get approval.

Hiremath said the new streamlined system would gather public input through neighborhood meetings at the beginning of the process. Th e proposal also could create a process allowing for more admin-istrative approvals instead of having to get council approvals.

“Th e end result is more job creation, more critical mass, which we don’t have,” Hiremath said.

Other council members were generally supportive of the proposal.

Councilman Mike Zinkin said certain stipulations should be included such as excluding development plans that would require zoning changes or conditional use permits. Zinkin also suggested that any qualifying development proposal be no closer than 600 feet from residences.

“If you meet those three conditions, you can then just go through staff ,” Zinkin said.

Th at fi nal stipulation shuld be relatively easy to meet since Neighborhood 3 has no residential units. Also, per a 1987 planned area development plan that governs zon-ing in Rancho Vistoso, the developable area is reserved mostly for campus park industrial space.

Going further than Hiremath, Zinkin said the new process could take council or

commission meetings entirely out of the equation. He said that because the area already has been zoned for campus park industrial and other business uses, the streamlining would not have an adverse impact on residents.

Hiremath and Zinkin estimate that a streamlined process could trim as many as nine months from the planning and devel-opment process.

Th e idea is getting initial support from business intersts in Oro Valley.

“Th is proposed zone is an excellent idea,” said Dave Perry, president and CEO of the Greater Oro Valley Chamber of Com-merce.

Perry said his chamber would support the plan to facilitate bringing more biotech fi rms such as Ventana Medical and Sanofi to the area.

It would create a “cluster eff ect” of syn-ergy and competition. California’s Silicon Valley is one of the most renowned cluster regions in the world.

“Oro Valley does posses the closest thing we have to a cluster,” said David Welsh, executive vice president with Tuc-son Regional Economic Opportunities. “I think this is an important step for them.”

Welsh previously worked as Oro Valley’s economic development administrator. He said the possibility of saving development time could help attract more companies, particularly start-up fi rms. Th e opera-tions of both Roche’s Ventana Medical and Sanofi began as start-ups in Oro Valley, Welsh noted.

“Instead of one Ventana or Sanofi every 15 years, we need one every year,” Welsh said.

Th e new eff ort plays into Oro Valley’s ongoing “rebranding” eff ort, as Hiremath described it.

“From 1974 to the early 2000s, Oro Val-ley’s single largest goal was to be the larg-est retirement community in Arizona,” Hiremath said.

Natural population growth and a spate of annexations through the 1990s and into the 2000s began to change that.

Between 2000 and 2010, Oro Valley’s population grew more than 38 percent, ac-cording to U.S. Census fi gures. Today, the town has about 40,000 residents.

While the population has grown, Oro Valley demographics still lean heavily to-ward retirees. More than a quarter of the town’s population is 65 years old and old-er.

Town offi cials hope this latest eff ort to attract more high-tech, high-wage em-ployers, coupled with arguably one of the region’s better education systems, pays off .

Hiremath said he’s banking on some-thing else to attract more biotech employ-ers – a responsive mayor.

Th e Ventana Medical expansion in Oro Valley announced in 2010, followed months of conversations with site selec-tors and others working on behalf of Ven-tana Medical, which also considered going to Indianapolis for the expansion.

“Th e one thing I asked (a site selector) when we did this,” Hiremath said, “did the mayor of Indianapolis sit down with you?”

Th e answer was no, Hiremath said.

Contact reporter Patrick McNamara at [email protected] or (520) 295-4259.

Oro Valley hopes to attract more companies like Ventana Medical Systems.

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This Week’s Good News Grant Road widening

It’s no cross-town freeway but at long last work is offi cially underway widening Grant Road as an east-west thoroughfare.

Groundbreaking ceremonies were held Th ursday (July 26) at the Grant and Oracle roads intersection, which is the start of the project that will extend east to Swan Road.

Th e intersection improvements will take a year and the entire Grant Road project will be done in phases that are scheduled to take until 2026.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Biotechs fl irting? Roche’s Ventana Medical Systems, Sanofi

and other like-minded fi rms in Oro Valley might be adding some new Innovation Park neighbors in the not-too-distant future.

Insider hears a major biotech is looking at becoming part of the cluster and a start-up has also expressed an interest in going there.

Hot airport parking Southern Arizonans know the best parking

spaces in the summertime are the shaded or covered ones, no matter how far the walk after you park. But when shade and convenience come together, you’ve got a hot commodity — make that a cool commodity. For the fi rst time since Tucson International Airport opened its parking garage in 2007, the 630 spaces in it fi lled to capacity once this summer and nearly so on two other occasions.

Th e parking is located just east of the ter-minal building, behind the rental car build-ing.

Th e cost is $9 a day, which is high by Tuc-son airport standards but try telling that to someone who fl ies out of other airports.

PHX says ‘beer’?When Anheuser-Busch thinks beer, Tuc-

son is no Augusta, Ga.; Columbus, Ohio; Oklahoma City or any one 39 locations the company has picked to trademark their three-letter airport codes for “beer,” ac-cording to a fi ling with the U.S. Patent and Trademark Offi ce.

Th is comes on the heels of a May fi ling to trademark 15 telephone area codes as beer.

Th e company isn’t saying what it intends to do with the trademarks but we can watch for two brands of beer that are included: 602, the area code for Phoenix, and PHX, the airport code for Sky Harbor International Airport.


NEWS

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

BANKRUPTCIESChapter 11 - Business reorganization Phillip C. Klingler, 2351 W. Limewood Drive. Principal: Phillip C. Klingler, debtor. Estimated assets: $50,000 or less. Estimated liabilities: $50,000 or less. Largest creditor(s): Not fi led. Case No. 12-16136 fi led July 19. Law fi rm: Michael W. Baldwin

Joann M. Saylor, 2601 W. Capistrano Road. Principal: Joann M. Saylor, debtor. Assets: $328,400.00. Liabilities: $493,294.32. Largest creditor(s): Nationstar Mortgage, Lewisville, Texas, $133,952.00. Case No. 12-16393 fi led July 23. Law fi rm: Eric Slocum Sparks

Craig Steinhoff and Stephanie Steinhoff, 3606 S. Peart Road, Casa Grande. Principal: Craig Steinhoff and Stephanie Steinhoff, joint debtors. Assets: $328,400.00. Liabilities: $493,294.32. Largest creditor(s): BAC Home Loans/CountryWide, Simi Valley, Calif., $244,306.00, and Bank One, Westerville, Ohio, $229,132.00. Case No. 12-16437 fi led July 23. Law fi rm: Eric Ollason

FORECLOSURE NOTICES 911 Insurance Agency LLC 7533 W. Calle Lerdo 85757Tax parcel: 210-34-2330Original Principal: $38,000.00 Benefi ciary: Aboud & Aboud PC Profi t Sharing Plan Auction time and date: 10 a.m. Oct. 11, 2012 Trustee: Michael J. Aboud, 1661 N. Swan Road, Suite 234

Madera Business Park LLC 2750 S. Fourth Ave., South Tucson 85713Tax parcel: 119-02-0740 and 119-02-027HOriginal Principal: $1,500,000.00 Benefi ciary: Maple Trust 2012-1, c/o Garrison Investment Group, New York Auction time and date: 11:30 a.m. Oct. 24, 2012 Trustee: Travis B. Hill, 4808 N. 22nd St., Suite 200, Phoenix

LIENSFederal tax liens Gila Inspections & Construction LLC and Paul Taylor, 3980 W. Linda Vista Blvd., Apt. 10105. Amount owed: $1,145.24.Stone Transmission Service and Daniel F. Bojorquez, 527 N. Stone Ave. Amount owed: $2,245.39.Express Tune-Up & Lube and S&H Enterprises Inc., 777 E. 22nd St. Amount owed: $1,327.57.Wa:k Snack Shop and Simon J. Ignacio, 1909 W. Koli Ki Wog. Amount owed: $7,116.81. HRC Automotive and Donald Joseph Boule Jr., 1015 W. Prince Road, Suite 131 PMB 183. Amount owed: $11,932.33.Middle Link Inc. and Keith Collea, 236 E. 30th St. Amount owed: $5,961.00. On A Roll LLC and Teresa A. Moreno, 63 E. Congress St. Amount owed: $4,839.57. Permanent Makeup of Green Valley and Laina F. Beach, 170 N. La Canada Drive, Suite 30A, Green Valley. Amount owed: $2,604.55.Saunmik Investments LLC and Michael Mahaffey and Saundra Mahaffey, 7401 W. Beryllium Lane, Marana. Amount owed: $1,215,604.93. Baruch Enterprises Inc. and Michael Mahaffey and Saundra Mahaffey, 7401 W. Beryllium Lane, Marana. Amount owed: $1,215,604.93.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)La Parrilla Suiza Casa De Mexico and International Restaurants Inc., 5556 E. Speedway. Amount owed: $57,401.92.

PUBLIC NOTICESPublic notices of business bankruptcies, foreclosures and liens filed in Tucson or Pima County and selected filings in Phoenix. Addresses are Tucson unless otherwise noted.

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

Cemex Construction Materials South LLC against Sahuarita Sel Storage LLC. Amount owed: $7,529.11.United Metal Products against Moreland Arizona Properties LLC and Avondale Auto Group. Amount owed: $32,722.00.

Release of federal liens Dangle Aviation Inc., 130 E. El Naranjo, Green ValleyStrey Painting Company Inc., 9850 E. Banbridge St.Tucson Rehabilitation Medicine & Associates PC, 1921 W. Hospital DriveVPC Medical Billing LLC, PO Box 7118, Chandler 85246Columbus Glass & Screen LLC, 1226 N. Columbus Blvd.AAA Pool Service of Tucson, 4039 S. Escalante PlaceD&D Custom Mold Inc., 3318 E. Pennsylvania St.Dermatology Northweset and James E. Bennett, 1845 W. Orange Grove Road, Suite 101Abigail Smith Insurance Agency and Abigail Smith, 5809 E. 22nd St.Ultima Self Defense and Fitness Center LLC and Alan Dankwerth, 7649 E. SpeedwayLaw Offi ce of Trini Armenta and Trini Armenta, 422 E. Ninth St.Pro Click Media Inc., 12601 N. Como Drive, MaranaBE&Q Nails LLC, 13190 E. Colossal Cave Road, Suite 120, VailSouthwest Airport Services Inc., PO Box 11189, 85734All Seasons Desert Landscaping and OND Contractor Services LLC, 2977 E. Manzanita Ave.Elements Salon and Robert & Andrea Allen LLC, 1951 W. Grant Road, Suite 110

Release of state liens AWOL Industrial Supply LLC, 6420 E. Broadway, Suite A200Bencomo Inc., 3924 W. Ina Road, Suite 306, MaranaMRN Ltd., PO Box 17009, 85731MPower Technologies LLC, 6161 E. Speedway, Suite 205Claire’s Cafe LLC, 165140 N. Oracle Road, CatalinaLB Goodtimes LLC, 1820 E. Sixth St. Ocotillo Blue, 7801 E. Wrightstown RoadM.D. Simba Enterprises Inc., 3940 E. 29th St. J.L.J. LLC, 5051 N. Sabino Canyon Road, Apt. 1195Aries Remodeling & Maintenance LLC, 1891 N. Circulo De La CienegaR&H Gas Service, 1309 E. Benson HighwayKavo & Tunzi LLC, 961 W. Dawson PlaceKG’s Cafe and Barabara Bros LLC, 8735 E. BroadwayAnderson Studio Architects Inc., 1643 N. Alvernon Way, Suite 106Pant Palace; B&J Pants, and Benjamin Encinas and Jose Luis Peralta, 3402 S. Sixth Ave.O’Bryan Electric LLC, 5750 N. Mountain Lion Lane, Picture RocksSean Green Painting LLC, 520 E. Rimrock Place, Oro Valley49er Country Club LLC, 1700 Country Club Drive, Plano, TexasBerlin LLC, 254 E. Congress St.F&K Food Corp. Inc., 5770 S. 12th Ave.4625 N. Palisade Dr. LLC, 2825 E. Malvern St.

Release of mechanic’s liens Haugebak Construction Company Inc. against Fry’s Store #286 and Tangerine CrossingCemex Construction Materials South LLC against Charter School Fund Oro Valley LLCAscent Aviation Services Corp. against Falcon AirWinroc against Park Mall LLC and General Growth PropertiesFire Security Electronics & Communications Inc. against 1150 Drexel LLC and Sandrex LLCEssco Wholesale Electric Inc. against Tucson Medical Investors Ltd., Carondelet Health Network and Retina AssociatesAtlantic Concrete Cutting Inc. against Leyenda En Tiempo LLCEffi cient Electric Inc. against Campbell Ave.

US Airways chief takes pitch for American Airlines merger to Washington

By Samantha BareCronkite News Service

Tempe-based US Airways does not need to merge with American Airlines to remain viable, but consolidation would create a stronger competitor than either business can be on its own, according to US Airways CEO Doug Parker.

But Parker warns his airline will not wait forever for American, which fi led for bankruptcy protection in November. Th e best time to merge is during bankruptcy proceedings, he said, not after.

“US Airways is here now and we’re ready to do this now,” Parker said in a July 18 speech at the National Press Club in Washington, D.C., where he was joined by leaders of three of American’s labor unions. “Th ere’s no guarantee that’ll be the case forever.”

A spokesman for American said it will not be rushed into a decision.

“Th is will be a disciplined process guided by the facts and will not be infl u-enced by baseless rhetoric,” American Air-lines spokesman Michael Trevino said in a prepared statement.

In bankruptcy court, American identi-fi ed four other airlines, in addition to US Airways, as possible merger candidates.

But Parker said a merger with US Airways makes the most sense. He said American is currently missing out on an “enormous source of corporate business” on the East Coast and a merger would help fi ll in the gaps in cities like Philadelphia, Charlotte, N.C., and Washington, D.C.

“We are the No. 1 carrier at each of our hubs,” he said. “We focus on areas where we do well.”

Parker said there is “very little” overlap between the companies, erasing the need to scale back on fl ights in a merged airline. Rather, consumers will have more options and enjoy a more competitive airline in-dustry because the merger could create a strong challenger to the nation’s two larg-est airlines, Delta and the new United/Continental.

While he wants a merger, Parker said US Airways – which employs 9,239 people in the Phoenix area – does not need it.

“We are producing record revenues, record yield and very strong load factors,” he said.

He said merging during American’s bankruptcy would save several “transac-tional expenses” and create a better envi-ronment for working out details of a con-solidated corporation.

A merged airline would be stronger, meaning better long-term job security for the companies’ combined 100,000 em-ployees, Parker said.

Th e three largest unions representing American’s employees have publicly sup-ported a merger with US Airways since June. Leaders of the unions for American’s pilots, fl ight attendants and ground work-ers were seated at the head table for Park-er’s speech in Washington.

In Parker’s merger scenario, the merged airlines would take the name American and its headquarters would be in Fort Worth, Texas.

US Airways CEO Doug Parker speaking at the National Press Club this month in Washington, D.C.

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PROFILE

Embry-Riddle Aeronautical University grows in S. Arizona By Alan M. PetrilloInside Tucson Business

Embry-Riddle Aeronautical University might be one of the best kept aviation and aero-space educational secrets in Southern Arizona.

Th e university, which has residential campuses in Prescott and Daytona Beach, Fla., operates in 150 locations around the world, including three educational facilities in Southern Arizona — in midtown Tucson, at Davis-Monthan Air Force Base and at Fort Huachuca outside Sierra Vista.

Kelly Lawton, director of the Tucson Em-bry-Riddle locations, says the university’s name says it all.

“We’re all about teaching the science, technology and management of aviation and aerospace,” he said.

Embry-Riddle’s curriculum covers the operation, engineering, research, manufac-turing, marketing and management of mod-ern aircraft and their support systems. Th e university off ers bachelor’s and master’s de-gree programs in a number of disciplines, as well as training for aviation certifi cates.

Embry-Riddle fi rst came to the Tucson re-gion in the late 1980s, Lawton said, setting up on Davis-Monthan Air Force Base to handle a student body composed of mili-tary personnel and government con-tractors.

It expanded to the Army’s Fort Huachuca three years ago and the midtown Tucson facility — at Grant Road and Rose-mont Boulevard — opened in Jan-uary of this year.

Lawton said Embry-Riddle has put more than 1,300 students through its degree and cer-tifi cate programs at Davis-Monthan yearly, operating on fi ve terms over 12 months. Th e Fort Huachuca location has grown from a half dozen students during its fi rst year in operation to more than 100 currently in its various programs.

Th e newly-opened midtown Tucson fa-cility is growing strongly, Lawton noted, with 60 students accepted for degree and certifi cate programs and with about eight new students being taken on each month.

While Embry-Riddle is limited by the U.S. Department of Defense to the number of courses it can off er on Davis-Monthan and Fort Huachuca, there are no such limitations at the Tucson location. Th e university off ers programs of study leading to bachelor de-grees in aeronautics, technical management, aviation business administration, transpor-tation and aviation maintenance manage-ment. Master’s degrees can be achieved in

aviation business admin-istration, management, project management, and logistics and supply chain management.

In addition to degree program course requirements, Embry-Rid-dle students take classes in computer profi -ciency, arts and humanities, social sciences, natural sciences and mathematics.

Lawton noted that Embry-Riddle off ers degree programs and professional certifi ca-tions based “on the market needs, as com-municated to us by local industry leaders.” He added the university has key relation-ships in Southern Arizona with such com-panies as Raytheon Missile Systems, Bom-bardier, Universal Avionics, Honeywell, BE Aerospace and Sargent Controls.

At the Tucson location, the university of-fers fi ve delivery methods for its education — on-site, online, blended (70 percent classroom and 30 percent online), video conferencing through Eagle Vision Home live streaming where students are one-on-one with an instructor, and Eagle Vision Classroom where the university telecom-mutes from its classrooms or participates in

a remote session being hosted elsewhere.“A lot of the students at our Tucson cam-

pus are civilians, compared to the many military personnel enrolled at Davis-Mon-than and Fort Huachuca,” Lawton said. “But because we have locations worldwide, our students can fi nish their studies at any of our 150 locations.”

Lawton sees further growth for Embry-Riddle in Southern Arizona, predicting the Tucson campus will grow and prosper, even

aiplm

BIZ FACTS

Embry-Riddle Aernonautical Universitywww.erau.edu/• Tucson5099 E. Grant Road, Suite 201(520) 512-5785• Davis-Monthan Air Force Base5355 E. Granite St., Suite 108(520) 747-5540• Fort Huachuca2288 La Guardia St., Building 52104 – Room 1A(520) 459-1033

adding additional degree programs.“We would like to put forward a bachelor

of science degree in unmanned aerial systems in the future,” he said. “Th is particular career fi eld is growing and we are aggressively look-ing to put it into our curriculum. In addition, a bachelor of science degree in security and in-telligence is another one that’s being consid-ered. Th e demand is out there for both of them, so we’re working through the accredita-tion channels to make them happen.”


stamp that belonged to their recently deceased mother and then struggle to decide its fate. Written by Th eresa Rebeck, the play is present-ed at 7:30 p.m. Fridays and Saturdays and 3

p.m. Sundays through Aug. 18. Tickets are $18, the box offi ce is open 3-5 p.m. Tuesdays through Saturdays and one hour before show times. Call (520) 327-4242 to make reservations.

FilmSome excellent fi lms are opening this

weekend at the Loft Cinema, 3233 E. Speedway. First up is the spooky thriller “Th e Pact” which screened at Sundance this year and is a top-notch horror fl ick. Also opening is the engaging documentary “Kumare” about a man who decides to create a cult-like following as an experiment, and is shocked at how easily it comes together. Filmed largely in Phoenix, “Kumare” is a powerful story about the need for leaders. Also at the Loft, “Take Th is Waltz,” about a woman in transition and the choices she makes in her life along with the consequences.

Th e critical favorite “Beasts of the Southern Wild” fi nally opens in Tucson at the multiplex this weekend with a compel-ling story of the struggle to survive after a hurricane in New Orleans.

Contact Herb Stratford at [email protected]. Stratford teaches Arts Management at the University of Arizona. His column appears weekly in Inside Tucson

Business.

HERB STRATFORD

ARTS & CULTURE

An event at 7 p.m. Saturday (July 28) will showcase the premiere performance of Giant Giant Sand’s new album, “Tucson: A Country Rock Opera,” while at the same time serving as a benefi t for Mary Charlotte Th urtle, who is well-known in the local arts community and has been diagnosed with cancer.

Th e Tucson Artists and Musicians Healthcare Alliance (TAMHA) and Pan Left Productions are hosting the event at the Hotel Congress, 311 E. Congress St. Th ere is a suggested donation of $5 to $10 at the door.

Th urtle, executive director of Pan Left Productions, and a member of TAMHA was uninsured at the time of her diagno-ses and struggling to pay her medical bills.

Th e event will feature a silent auction and a performance by Salvador Duran in addition to Giant Giant Sand, which is due to start a European tour next month.

Art giftsIt’s probably never too early to start

thinking of holiday gifts. Th e DeGrazia Gallery In the Sun, 6300 N. Swan Road, has something that can impress out-of-town friends and relatives: 2013 DeGrazia Watercolor wall and desk calendars and annual holiday bell. Th e wall calendars suitable for framing are $13 each, the desk calendars are $7 and the bells, featuring an “Angel Lullaby” image, are $11.50. Th ey can be purchased at the gallery’s gift shop or online at www.degrazia.org click on gift shop and new items.

Th eaterLive Th eatre Workshop, 5317 E.

Speedway, is presenting the Arizona premiere of “Mauritius,” an adult play that tells the tale of two sisters who fi nd a rare

Musicians’ benefi t event will feature Tucson album premiere

OUT OF THE OFFICE

MICHAEL LURIA

MEALS & ENTERTAINMENT

Café a la C’Art provides new downtown dinner option

Downtown lunch staple Café a la C’Art is now serving dinner Th ursdays through Saturdays. Located on the grounds of the Tucson Museum of Art, Café a la C’Art off ers a balance of ambiance, gracious hospitality, value and delicious food.

Th e introductory menu was limited to four appetizers and four entrées on a recent visit. Th is fall the restaurant plans to launch a more comprehensive dinner menu.

Despite the limited choices on my visit, the quality and quantity of what was served was impressive. One of the appetizers was tiger shrimp fi lled with crab, jalapeno, applewood bacon and mango salsa served with a citrus beurre blanc. Not only was it delicious, the serving of four large plump shrimp cost just $8. A seared red snapper entree with artichokes, capers, grape tomatoes and herbed risotto was an equally generous portion and delicious for $17.

In addition to appetizers and entrees, a cup of soup or a house salad is available for $3. Mimicking the rest of the dinner menu, there is a small, but well priced, wine list, too.

Dinner is served from 5-9 p.m. Th urs-days through Saturdays.• Café a la C’Art, 150 N. Main Ave. — www.cafealacarttucson.com — (520) 628-8533

Mussel your way to the barLooking for a respite from the heat?

Duck inside the Dish Bistro-Bar. Cool, sophisticated and windowless, the mid-town venue in the same building as the Rum Runner store, serves a big bowl of steamed mussels in a saff ron broth with tomato and oregano, along with crispy bread with house-made four onion butter and a glass of wine or a pint of beer for $12.50. It’s available only at the bar Tuesdays, Wednesdays and Th ursdays.

Th e bar and the dining room are small

and intimate — it’s diffi cult to discrern the dividing line between a couple of tables and the Rum Runner store — but the knowl-edgeable staff delivers big. And of course the wine list doesn’t end with the printed menu.

Everything in the Rum Runner is also available for $12 over the store price.

Th e Dish serves from 5-9 p.m. Tuesdays through Th ursdays and 5-10 p.m. Fridays and Saturdays.• Th e Dish Bistro-Bar, 3131 E. First St., southeast of the corner of East Speedway and Country Club Road — www.dishbistro.com — (520) 326-1714

Prime rib special is backFleming’s Prime Steakhouse & Wine Bar

is once again running its Sunday night prime rib dinner special. It’s three courses of a salad, the prime rib entrée with one side dish, and dessert. Normally priced at $37.95, through Sept. 2, it’s $29.95 per person. To go with it a bottle B.R. Cohn North Coast Silver Label Cabernet Sauvignon is also specially priced at $40 on Sunday nights, too.

Fleming’s is open from 4-9 p.m. Sundays. Other days of the week it doesn’t open until 5 and stays open until 10 or later. • Fleming’s Prime Steakhouse & Wine Bar, 6360 N. Cambpell Ave. in Paloma Village — www.fl emingssteakhouse.com — (520) 529-5017

Contact Michael Luria at mjluria@

gmail.com. Meals & Entertainment appears

weekly in Inside Tucson Business.


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MEDIA

DirecTV-Viacom was just fi rst battle in changing TV world By David Hatfi eldInside Tucson Business

Th ere have been fi ghts before between TV program providers and cable and satellite services but the one this month between Via-com and DirecTV was one of the nastiest and may well be just the fi rst battle in a changing environment of how people watch TV.

And more importantly how they pay for it.

Viacom’s 26 channels — including Nick-elodeon, MTV, Comedy Central, BET, VH1, CMT, Spike TV and TV Land — were taken away from DirecTV’s 20 million customers for nine days until the two sides reached their deal July 20.

DirecTV acknowledged it lost some sub-scribers and made deals with other custom-ers to keep them.

Viacom lost ratings for its channels and subscriber fees.

In the end, the two sides reached a new seven-year deal. While the details weren’t announced, it has been widely reported that Viacom will get a 20 percent increase in subscriber fees the fi rst year then single-digit percentage increases in subsequent years.

Th e new fi gure will be $2.80 per month

per subscriber, which when you add it up will total $600 million in the fi rst year. Via-com had been seeking a 30 percent increase to about $3.68 per subscriber, according to estimates.

Analysts are keying on the fact that Di-recTV won’t have to carry Viacom’s new premium pay TV movie channel Epix.

Program providers with popular chan-nels use that leverage to try to force cable and satellite companies into taking their new channels as a condition of keeping the popular channels.

Th e cable and satellite companies then pass the added costs on to subscribers, though the industry offi cials that has be-come more diffi cult to do in the face of cus-tomers who can now access more program-ming through online sources.

Meanwhile, the fi ghts go on. Dish Network’s 14 million subscribers

have been without AMC since the end of June. Dish offi cials say the channel was dropped because AMC was forcing it to also carry low-rated IFC and WE channels.

AMC says the dispute really has to do with a 2008 lawsuit that may cost Dish $2.5 billion.

Later this year, CBS is due to renegotiate its distribution agreement with DirecTV and Fox’s deal with Comcast comes up for renewal.

Pac-12 TV updateTh ere’s no deal yet with either of the two

big satellite providers, but there is other progress to report on the new Pac-12 net-works that are on track to debut Aug. 15.

• Cox Communications confi rms it will carry the regional Pac-12 Arizona on chan-nel 75 and in high defi nition on channel

1075 as part of its Digital Expanded pack-age, which it off ers at a normal basic price of $34.99 a month. (HD, DVRs and other items can cost extra.)

• Comcast, which had already confi rmed it will off er Pac-12 Arizona on channel 103 and in HD on channel 598, says the new channel will be part of its Digital Starter package, which sells for a base price of $29.99 a month.

• A national version of the Pac-12 Net-work also will be available on Comcast channel 283 and most likely on Cox, though offi cials couldn’t confi rm the details. In both cases, the national version is available as part of a separate sports tier, which both Cox and Comcast off er at $7 per month.

Th is can be good in cases when you might want to keep track of another Pac-12 besides what’s on Pac-12 Arizona.

• Subscribers to Western Broadband ca-ble in SaddleBrooke and Cable One, which serves Bisbee, Clifton, Globe, Lakeside/Pin-etop, Morenci, Naco, Saff ord, Show Low and Th atcher, will also have access to the new channel under an agreement announced this week between the Pac-12 and National Cable Television Cooperative.

• It’s diffi cult to tell where negotiations are with DirecTV and Dish Network. Pac-12 Commissioner Larry Scott this week said he is optimistic agreements can be reached but off ered no timetables.

(On a lark, I asked a DirecTV sales rep about the channel. She put me on hold, came back and apologized for the delay and said it would be available but it would be part of the sports tier, which by itself costs $20 a month. Nobody else at DirecTV would confi rm that.)

• More names: Th e Pac-12 announced a dozen more people have been hired as on-

air announcers, many of whom played in the conference.

Among them is former University of Ari-zona Wildcat Glenn Parker, who will be an analyst paired up with Ted Robinson, who is in London covering diving events for NBC’s coverage of the Summer Olympic games.

Th eir fi rst assignment will be the San Jose State-Stanford game at 7 p.m. Aug. 31. (Th e Wildcats play Toledo the next night, Sept. 1, in a game that will be on ESPNU.)

• Besides live games, the Pac-12 network is putting together other shows including half-hour previews of each team in the con-ference and then during the season there will be condensed hour-long replays of all Pac-12 home games each week.

Game coverage will also include live pre-game, half-time and post-game shows pro-duced at the Pac-12 networks’ studios in San Francisco.

KUAZ schedule changes

NPR outlet KUAZ 89.1-FM/1550-AM has juggled its weekend schedule and added two new shows to its Saturday line-up: Th e shows are “Snap Judgment,” a new people-centered feature documentary series that uses a lot of music in its storytelling, and “Living on Earth,” an environmental news program. Both are hour-long shows.

“Snap Judgment” airs at 1 p.m. Saturdays and “Living on Earth” airs at 2 p.m.

Th e comedy-quiz show “Whad’ya Know?” hosted by Michael Feldman, which had been airing from noon-2 p.m. Satur-days, has been dropped by KUAZ.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.


INSIDE TRAVEL

Monthly passenger traffi c plummets at Tucson airport, but 2012 still up, slightly By David Hatfi eldInside Tucson Business

After a strong start to the year, passenger traffi c at Tucson International Airport plum-meted in May and June to the lowest levels those months have had in nine years.

As a result, passenger numbers are up just 0.3 percent through the fi rst half of 2012, ac-cording to statistics from the Tucson Airport Authority (see chart).

Th e June total of 286,956 passengers was down 3 percent from 295,947 in June 2011. It was the airport’s slowest June since 2003 when 281,737 passengers went through the airport.

Th e May drop was even more, especially since May 2011 was the airport’s second busiest month last year. Th e numbers dropped 3.1 per-cent this year to 314,261 from 324,336 a year ago. Like June, this year’s May was the slowest May since 2003.

For as negative as these numbers seem, air-lines cut capacity back even more.

“Passengers are responding and fl ying out of Tucson,” said Mary Davis, senior director of business development and marketing for Tuc-son Airport Authority (TAA). “Th at’s a positive we can take — and will take — take to the air-lines in meetings we’ve got scheduled in the fall.”

Airline seat capacity going out of Tucson was down 10 percent in May to an average of 6,062 available seats per day and down 11.5 percent in June to an average of 5,679 seats per day.

Looking at it another way — from the air-lines’ view — Tucson passengers fi lled 85.6 per-cent of available seats in June, up from 78.6 per-cent in June 2011, and a whopping 89.6 percent of seats in May, up from 83.3 percent for the same month in 2011.

Th at 85.6 percent of seats fi lled in June com-pares to an average of 85.3 percent of seats fi lled system-wide by the airlines serving Tucson In-ternational Airport.

Th e biggest cutbacks in available seats from Tucson were to Denver due to the May pullout of Frontier Airlines and a temporary reduction in fl ights by United. In June 2011 there were six daily fl ights to Denver. Th is June that was down to four — two on Southwest and two on United. Seat capacity to Denver was down 42 percent to an average of 375 per day, from 648 a year ago.

Among other signifi cant cuts, US Airways reduced its seat capacity by more than 20 per-cent, United dropped one daily fl ight to Hous-ton reducing capacity on that route by more than 23 percent, and American dropped one daily fl ight to its Dallas-Fort Worth hub, elimi-nating 15 percent of available capacity on that route.

Th e TAA’s Davis says airlines have already put out schedules for this winter that reinstate many of the fl ights.

“Th e airlines are being much more careful in

scheduling that refl ects seasonality demands,” she said.

Half-way through 2012, passenger numbers at Tucson International Airport have been down all but two months. But those two months of in-creases — February was up 3 percent and March was up 5.2 percent — have so far over-come the four months of decreases, which ex-cept for May and June, amounted to less than 1 percent each month.

Service notesTh e seasonality of airline scheduling will be

refl ected in coming weeks and months. Among the schedule changes airlines have out:

• Delta Air Lines is dropping its daily non-stop fl ights to Minneapolis-St. Paul for the en-tire month of September. Th e fl ights — one each way — will operate daily except Wednesdays and Saturdays the last two weeks of August and then resume daily again Oct. 1 through the end of the year. In January, the schedule drops back again to three days a week through mid-Febru-ary.

• United Airlines’ cutbacks to just two daily round-trip fl ights to Denver will remain in ef-fect until Nov. 4 when two additional fl ights will be reinstated.

• Barring a last-minute change, Southwest Airlines won’t be bringing back it’s non-stop fl ights between Tucson and Baltimore during the winter season. Th e airline has published its schedules through March 8 without the fl ights. Th e airline off ered the fl ights from Feb. 12 through April 9 this year. Although the an-nouncement of those fl ights didn’t come until December last year, that had to do with the fact that Southwest found itself in a situation with available aircraft after it failed to win approval to launch new fl ights at Reagan National Airport. Southwest isn’t facing a similar situation this year — and in fact, this month started fl ights from Reagan to Austin, Texas, after winning ap-proval from the U.S. Department of Transporta-tion.

Sky Harbor down, tooPhoenix Sky Harbor International Airport

has also seen its passenger counts drop lately. Th e airport, which has only reported numbers through May, saw its May numbers drop 2 per-cent from a year ago and its April numbers drop 2.2 percent.

Th rough the fi rst fi ve months of 2012 Sky Harbor passengers have totaled 16.91 million, down from 16.92 million for the same months in 2011.

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.

Air service survey results to be unveiled to business leaders

TUCSON INTERNATIONAL AIRPORT 2012 PASSENGER STATISTICS

The number of passengers going through Tucson International Airport dropped 3 percent in June to 286,956, from 295,947 in June 2011. It was the second consecutive month of decreased passenger totals after three consecutive months of increases. The result is that for the fi rst half of 2012 passenger numbers are up just 0.3 percent over 2011. This chart shows each airlines’ passenger totals and market share for the fi rst six months of 2012 compared with the same six months of 2011.

Jan.-June 2012 Jan.-June 2011 Change

AirlineNon-stop destinations

Passengers Market Share

Passengers Market Share

Passengers %

Southwest 630,814 33.6% 636,615 34.0% -5,801 -0.9%Albuquerque, Chicago Midway, Denver, Las Vegas, Los Angeles, San Diego

American 448,006 23.8% 411,546 22.0% +36,460 +8.9%Chicago O’Hare, Dallas-Fort Worth, Los Angeles

United (Continental)

275,789 14.7% 263,492 14.1% +12,297 +4.7%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways 205,706 10.9% 226,778 12.1% -21,072 -9.3%Phoenix

Delta 201,540 10.7% 196,239 10.5% +5,301 +2.7%Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska 63,331 3.4% 53,896 2.9% +9,435 +17.5%Seattle

Frontier 53,796 2.9% 84,633 4.5% -30,837 -36.4%Service discontinued as of May 18

Total 1,878,982 1,873,199 +5,783 +0.3%

Source: Tucson Airport Authority

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

Inside Tucson BusinessBusiness leaders are invited to hear the fi ndings of an air travel demand survey

that will be unveiled at 3 p.m. Aug. 8 at the Doubletree Hotel at Reid Park Hotel, 445 S. Alvernon Way.

Jamie Kogutek, an air services consultant hired by the Tucson Airport Author-ity, will reveal the results of the survey and highlight opportunities for future air service during the 90-minute presentation. Th e survey conducted in June elicited responses from 512 companies.

Bill Holmes, chief operating offi cer of the Tucson Metro Chamber and leader of a steering committee working to improve air service, said the survey fi ndings and feedback from the business community is critical to developing successful eff orts to showing airlines there is demand for new and expanded airline service at Tucson International Airport.

Th e steering committee is considering a private-sector incentive program to stimulate air service development.

To reserve a place at the Aug. 8 presentation, send an email to Arlene Chiovetti at [email protected] . Th ere is no charge to attend the meeting.


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SOCIAL MEDIA IN THE WORKPLACE

Privacy, legal and business issues of website disclaimers

We all have encountered the inevitable website disclaimer. Th ese disclaimers typically contain boilerplate language governing the terms and conditions for using the website. Th rough these disclaim-ers, website owners or publishers try to limit their liabilities arising out of website usage for claims such as libel or defama-tion, invasion of privacy, misrepresenta-tion, deceptive trade practices, or copyright infringement. But what do these disclaim-ers really mean for the website owners on the one hand or for the businesses that access the site on the other hand?

Th ere are a variety of questions that website owners or businesses pose regard-ing website disclaimers. Do they actually protect against a lawsuit? Do consumers read them? Do they cause unintended problems, such as the inadvertent transfer of intellectual property licenses?

• What should be included in a website disclaimer?

Typically, a website disclaimer should include terms disclaiming any warranty, should limit liability of the owner and host of the website, and should include a term providing that use of the website constitutes an agreement that the limitations of liability, lack of warranties, and terms of use are reasonable. Specifi c terms may be needed, depending on the website and the business.

Most websites should contain a privacy statement and terms and conditions of use. For the privacy statement, the website should comply with federal and state privacy laws that protect individuals from having their personal information misused.

Because websites have the ability to collect and process enormous amounts of personal information, a website owner should craft and use a privacy policy that clearly states how personal information will be used, stored and disposed of. It is important for website owners and businesses to understand that a patchwork of laws — both on the federal and state level — attempt to regulate privacy on the Internet in a variety of ways.

• Are intellectual property rights of the website user at risk?

Some website disclaimers or terms of use policies provide that the user grant the website owner a non-exclusive, transfer-able, sub-licensable, royalty-free, world-wide license to use any intellectual property content the user posts on or in connection with the website. Facebook has a similar policy. Not much law exists where such policies have been challenged. Th e consequence of such a policy, however, could be substantial to the user. If the user were to post a video onto Facebook that ultimately “went viral” and became very

valuable, Facebook may own and control the value of that video.

• How can businesses address the issue of who owns their business content?

Employers and businesses may want to consider policies addressing who owns the business-related content that an employee creates. Many businesses encourage the use of LinkedIn to develop and store marketing contacts. When the departing employ-

ee leaves, who owns those contacts? Historically, an employer could ensure that it controlled marketing contacts because it would have stored them in its own system or database. Nowadays, when the contacts are stored on a Web-based system acces-sible from anywhere with a password, the considerations are diff erent.

It is important for businesses that rely on employees creating LinkedIn or similar contacts to clearly defi ne who owns and can use those contacts, particularly when the employee who has developed those contacts on the employer’s dime leaves.

As explained above, some websites’ terms of use policies provide that the websites own the user-generated content. If that content were generated by an employee who was paid to generate content valuable to the employer, the employer should protect that content with a policy specifi cally addressing ownership of user-generated content. Likewise, the employer should have a plan in place to deal with departing employees, especially when the employer might fi nd itself in the diffi cult circumstance of having to capture the user-generated content quickly.

We hope that this brief introduction has highlighted some of the thorny issues, so business owners can better protect their intellectual property and user-generated content against legal liability and inadver-tent loss of rights.

Contact Troy R. Rackham, an attorney

Of Counsel at Fennemore Craig, at track-

[email protected]. Contact, Susan E. Chetlin, a

director and Intellectual Property Practice

TROY R. RACKHAM

MEDIA

SUSAN E. CHETLIN

Group Chair at Fennemore Craig, at schet-

[email protected].


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How businesses are creating their own buzz ... marketing

Once upon a time, marketing options were simple and limited to buying airtime on a handful of TV and radio stations or placing ads in local newspapers or maga-zines. Now you can stay up all night with hundreds of channels of TV and radio. And the Internet is 24/7! With super technology comes tons of advertising. Today’s market is frenzied; your potential client is continu-ously bombarded, more diffi cult to reach and on overload. “Buzz marketing” is all about word-of-mouth promotion. Today, it is an increasingly popular marketing tactic.

Do you need to reach everyone? No. Abandon the temptation of throwing your marketing plan against the wall to see what sticks. Allocate your marketing dollars to targeting a profi table mix of prospects and existing customers while at the same time, connecting with a circle of infl uencers in your market.

First, take care of your golden geese. Typically, 80 percent of business comes from 20 percent of your customer base. Treat those customers well and make them feel appreciated. Casinos fi gured this out by awarding high-rollers with freebies. Th ey understand they’ll receive a return (and more) on their investments.

Keep your clients happy. Off er them premium discounts. Create a customer loyalty club, where frequent purchasers enjoy additional or instant discounts. Provide these clients with “private preview” sales or exclusive off ers. Th e more special you make them feel, the more they’ll likely return (and buy). Just as important, they’ll rave about your business. Be creative, think outside the box and create an existing customer retention plan that knocks clients socks off . Satisfi ed, raving clients is one easy form of Buzz Marketing.

Before you run out the door to get new clients, have a plan. Start by identifying your target customer. What is the demo-graphic you want to reach? Married, female, age 30 to 55, middle-class, median household income of $60,000 to $100,000 are some criteria for one target demo-graphic. With a defi ned target you can now determine how, where and by whom this target client is infl uenced.

Why did I include that particular demographic? I am a member of and serve on the board for the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO). I have come to understand through NAWBO and running my own business that this demographic has both household and business decision makers; strong purchas-ers who promote Buzz Marketing. Th is

demographic is an ideal target audience in almost every market.

Consumers today often dismiss and distrust advertising. Because of this, word of mouth referrals are more important than ever. Consum-

er marketers get it and are focusing on client product placement through buzz marketing, an increasingly popular tactic.

An example of buzz marketing is when a company reaches out to infl uencers within its target audience and provides free merchandise or services to use, evaluate and share. In turn, these infl uencers talk-up the product or service and infl u-ence others (assuming they like what they’ve received). Th e Internet has transformed this approach into a powerful tool. Instead of a local circle of friends, social networking allows these infl uencers to reach millions virtually worldwide.

Th ey key is to seek out infl uencers where they “live” and start sharing your products or off er your service for free. One company recently launched a new product by identify-ing key online discussion forums and bloggers who catered to its audience. Th e company arranged a free product give-away on the forums and sent products and samples to the bloggers. Th e forums buzzed for weeks with positive reviews and glowing appreciation of the free gifts.

Th is simple outreach helped propel a new product into a top selling product. And at the same time contributed a positive brand image in the minds of the recipients. A small investment in time, product and mailing costs netted favorable buzz and loads of new customers. Th ese customers were promptly rewarded with additional promotional off ers once they made their fi rst purchase.

Pinterest.com is another example of buzz marketing and a new concept that has recently exploded.

Try it out and see where it takes you. Plan fi rst, incorporate your existing clients then reach out to infl uencers. Create your own buzz...marketing!

Contact Morella Bierwag, communica-tions consultant and owner of Let’s Go Communications LLC, at [email protected] or (520) 401-9111. Bierwag is a member of the Greater Tucson Chapter of the National Association of Women Business Owners (NAWBO), whose members contribute this monthly column.

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GET ON THE LISTNext up: Business and in-dustrial parks, Commercial offi ces, Shopping centers

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

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

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

• Aug. 17: Asset management firms, Aeronautical firms

• Aug. 24: Highest paid city and county officials, Salary comparison of regional government officials

• Aug. 31: New car dealers If your business fits one of these cat-

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

NEW IN TOWNVantage West opens Catalina branch

Vantage West Credit Union has opened a branch in Catalina.

Th e branch, at 16460 N. Oracle Road, is the credit union’s 11th Pima County loca-tion and 15th location in Arizona.

Th e branch will be the fi rst credit union to serve the area.

Vantage West is Southern Arizona’s larg-est credit union with more than 115,000 members and $1.1 billion in assets.

Radiation Th erapy Center opens in foothills

Th e Center for Neurosciences has opened a new Radiation Th erapy Center, the eighth clinical center on its River Road campus.

Th e new center, at 2450 East River Road, features advanced radiation technology for the treatment of brain tumors and other neurologic cases. Th e new center brings the total footprint for the Center for Neurosci-ences to more than 40,000 square feet.

Th e Radiation Th erapy Center adds to the practice’s seven other clinical centers of ex-cellence, including the Brain Tumor Center, Epilepsy Center, Imaging Center, Interven-tional Pain Management Center, Movement Disorders Center, Multiple Sclerosis Center and Stroke Center.

RETAILFoothills deli to merge with pizza kitchen

Shlomo & Vito’s New York Delicatessen is expanding and merging with Vito’s Pizza Kitchen, which closed its location on Fort Lowell Road earlier this year.

To introduce the expanded menu, Shlo-mo & Vito’s is partnering with the Leukemia Lymphoma Society and will donate 10 per-cent of proceeds from pizzas sold Aug. 17-26, when they are added to the menu.

As part of the events surrounding what the restaurant is billing as a “reopening,” Shlomo & Vito’s will host a “Tucson Hunger Game,” from 6-8 p.m. Aug. 19 in the court-yard in Plaza Colonial where the restaurant is located. Local high school football teams will compete for their chance to win pro-ceeds of funds raised that day. Lineman from each school will compete in four quar-ters with four rounds of food. Th e lineman who eats the most in the competition will win the money for his school.

Shlomo & Vito’s, 2870 E. Skyline Drive, is open daily starting at 8 p.m. and closes at 9 p.m. Sundays through Th ursdays and 10 p.m. on Fridays and Saturdays. Th e website is www.shlomoandvitos.com/ .

ENTERTAINMENT/SPORTS Former Copper Bowl nowBuff alo Wild Wings Bowl

Th e football bowl game that started out in 1989 as the Copper Bowl and was played in Tucson through 1999 before being moved to the Phoenix area is getting a new name: the Buff alo Wild Wings Bowl.

Th e Minneapolis-based restaurant and sports bar chain has taken over the naming rights for the game played each December at Sun Devil Stadium in Tempe. Terms of the deal were not disclosed.

For the past 14 years, the naming rights were held by Insight Enterprises, which moved the game from Tucson to Phoenix where it was played at what is now Chase Field until 2006 when it moved to Sun Devil Stadium in Tempe. Earlier this year, Insight said it wanted to end the sponsorship.

Th e Fiesta Bowl committee, which runs the bowl game, had tentatively renamed it the Valley of the Sun Bowl. Th e game, which this year will be on Dec. 29, currently has a deal to feature teams from the Big Ten and Big 12 conferences.

HEALTH CAREFed creates Arizonahealth insurance co-op

Under provisions of the Aff ordable Care Act, the federal government has loaned an Arizona nonprofi t group more than $93 mil-lion to start a small-group healthcare co-operative.

Compass Cooperative Health Network was awarded the loan to create the Con-

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To date, non-profi ts in 14 states have been awarded $1.151 billion to start similar co-ops.

COMMERCIAL REAL ESTATE Luxury apartments completed on NW side

HSL Properties has completed Encan-tada at Riverside Crossing, a 304-unit, lux-ury apartment community at 1925 W. River Road.

Th e $32 million project, which includes a 69,000 gallon resort-style pool & spa, a THX certifi ed theater, professional fi tness center and Starbucks coff ee bar, is already 90 per-cent leased.

It employed 63 sub-contractor compa-nies during its planning and construction, of which 53 were Tucson companies. Th e project paid out approximately $22 million to local contractors, and it took an estimat-ed 45,000 work hours to complete.

South Tucson business park noticed for foreclosure

Madera Business Park, 2750 S. Fourth Ave., South Tucson has fallen into default and is scheduled to be sold at public auction in October. Public records list the original prin-cipal balance of $1.5 million for the 35,200 square foot industrial/offi ce complex.

Th e site’s owner is Madera Business Park LLC, 245 S. Plumer, Suite 4. According to public records, the fi rm is comprised of com-mercial real estate investor Ralph J. Colwell and the Colwell Family Limited Partnership.

Th e benefi ciary is Maple Trust 2012-1 of New York, in care of the Garrison Invest-ment Group. Th e auction is being handled by the Phoenix law fi rm of Carson Messing-er. Th e trustees’ sale is at 11:30 a.m., Octo-ber 24, at the Pima County Court Building, 110 W. Congress St.

CONSUMER ISSUES BBB warns of scams forschool loans, grants

Better Business Bureau of Southern Ari-zona advises students and parents to be wary of websites, seminars or other schemes that promise to fi nd scholarships, grants or fi nancial aid packages for an upfront fee.

Some of these companies promise a money back guarantee, but set so many conditions that it can be almost impossible to get a refund.

Others tell students they’ve been select-ed as fi nalists for a grant or scholarship but must pay a fee to be eligible for the award.

In some cases, for a fee, a company agrees to handle the paperwork that makes a stu-dent eligible for fi nancial aid. However, the standard application process for fi nancial aid is most often the Free Application for Federal Student Aid (FASFA), which students

and their parents can complete themselves at no cost by visiting www.fafsa.ed.gov.

College fi nancial aid offi ces require the FAFSA to assess a student’s eligibility for need-based aid. Most universities are will-ing to advise prospective students on how to apply for aid. Th ey also will answer ques-tions about fi nancial aid packages off ered when a student is accepted for admission.

CIVICRotary Club names grant recipients

Th e Rotary Club of Tucson has an-nounced that Reading Seed, a program of Literacy Connects, Pima Council on Aging and the YWCA are the 2012 Rotary Commu-nity Grant recipients.

Th ese organizations will receive funding from the net proceeds of the club’s signature fundraising event, the 2012 Tucson Classics Car Show, to be held on October 13th at St. Gregory College Preparatory School.

Last year, three nonprofi ts shared in $80,000 in Rotary Community Grants.

OV Chamber awards 3 scholarships

Th e Oro Valley Chamber of Commerce has awarded three students $2,000 scholarships. Britten Hernandez, Taylor Patterson and Madi-son LaMaster were recognized at the event.

Hernandez, a Canyon del Oro graduate, plans to study neuroscience or psychology at the University of Arizona.

LaMaster, also a CDO graduate, is going to study physical therapy at Northern Ari-zona University.

Patterson earned an associate’s degree at Pima Community College and plans to study biology and pre-medicine at Arizona Christian University.

Funds were awarded based on academic performance, community involvement, an essay, two letters of recommendation and fi nancial need.

Th e scholarship fund was named after Steve Engle, an Oro Valley founding father and the town’s mayor from 1978 to 1990.

NONPROFITSOur Family, New Beginningsmerge into one nonprofi t

Two Tucson-based nonprofi ts, Our Fam-ily Services and New Beginnings for Wom-en & Children, merged as of July 1 with the combined organization now going under the name Our Family Services.

As part of the merger, the agency is ex-panding its homeless services division un-der the name New Beginnings.

Patti Caldwell, who had been executive di-rector of New Beginnings since January 2011, heads up the merged agency with the retire-ment at the end of June of Sue Krahe, who had been executive director of Our Family Services.

BRIEFSTh e merger creates an agency with near-

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Th e New Beginnings division helps homeless children, youth and families through outreach, shelter, support, educa-tion and housing.

KUDOSSummit Hut wins outdoorretailer of the year award

Tucson’s Summit Hut has been named 2012 retailer of the year by the Grassroots Outdoor Alliance. a collective of indepen-dent retailers and vendor partners who strive

to protect and promote the experience of out-door enthusiasts across the United States.

Summit Hut, with locations at 5045 E. Speedway and 605 E. Wetmore Road, was selected by the 65 vendor partners as this year’s top retailer.

Th is award refl ects the retailer’s dedica-tion to being a world-class retailer, provid-ing the best service and relationships to customers, the community and vendor and industry partners.

Summit Hut has been in business for 43 years specializing in hiking, camping and backpacking gear. It is owned by Dana and Jeremy Davis.

Gassroots Outdoor Alliance is made of operators of 70 independent specialty out-door stores in North America. Th e award to Summit Hut was given out at the organiza-tion’s June summer show in Ogden, Utah.


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SPECIAL EVENTS

Business Awards: More Than Just A Fancy PaperweightTuesday (Aug. 14) 10:30 a.m. to 1:30 p.m. Doubletree Reid Park 445 S. Alvernon Way Contact: Morella Bierwag [email protected] (520) 326-2926Cost: $25 members/ $30 others www.nabwotucson.orgNAWBO panel of award presenters and past winners moderated by Lorraine Harrington discuss the personal and professional benefi ts of receiving an award and offer tips on creating a winning application. Panelists include Marion Hook of Adobe Rose Inn, Lesli Pintor of National Bank of Arizona, Jan Woods of Veterinary Specialty Center of Tucson, Kim States of the Better Business Bureau and Louise Abbott of Arizona Small Business Association.

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

REGULAR MEETINGS

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

Metropolitan Tucson Convention

& Visitors BureauFirst Tuesday Monthly Luncheon11:45 a.m. to 1 p.m.Arizona Inn 2200 E. Elm St.RSVP Required: (520) 770-2131 or www.visitTucson.org/PartnerRSVPCost: $25 MTCVB Partners; $30 Others

NAWBO Monthly Mixer Third Thursdays 4 to 7 p.m.Locations varyInfo: [email protected]

NAWBO Monthly BreakfastFourth Tuesdays, 8 to 9:30 a.m.Locations varyInfo: Morella Bierwag, (520) 326-2926 or [email protected]

NAWBO Monthly LuncheonSecond Tuesdays10:30 a.m. to 1:30 p.m.Locations varyInfo: Morella Bierwag, (520) 326-2926 or [email protected]

National Association of the Remodeler’s Industry (NARI) TucsonThird Tuesday 5:30 p.m. Varies, call for locationInformation: (520) [email protected]: Free to members and fi rst timers

Networks @ WorkFirst Wednesdays 11:30 a.m. to 12:30 p.m.Sullivan’s Steak House 1785 E. River RoadContact: Ricardo Carrasco at (520) 977-8812 or Ricardo@gsfl oans.comCost: Meal from menu ($12-$25)

Networking Club in Northwest TucsonAli Lassen’s leads clubFirst Wednesday noon to 1 p.m. Sullivan’s Steak House 1785 E. River RoadRSVP: Johnna Fox

(866) 551-3720

Networking Entrepreneurs of TucsonNetworking breakfastFirst and third Wednesday 7 to 8:30 a.m.Hometown Buffet 5101 N. Oracle RoadInformation: (520) 240-4552

Northern Pima County Chamber of Commerce Monthly Membership BreakfastFourth Thursday of the month7 to 8:30 a.m.El Charro Café 7725 N. Oracle Roadhttp://the-chamber.com

Northwest Power Group (referral group)Mondays 7:30 a.m. to 8:30 a.m.Hilton El Conquistador Country Club,10555 N. La Cañada DriveRSVP: (520) 229-8283Cost: $50 one-time fee (fi rst two visits free)

Northwest Power GroupNetworking business groupEvery Tuesday 7:15 to 8:30 a.m.Village Inn 6251 N. Oracle RoadRSVP: Don at (520) 777-4240Cost: Breakfast

Oro Valley Business Club Monthly LuncheonFirst Thursday of each month.Carrabbas Italian Grill7635 N. Oracle Rd.Information: www.scoretucson.org, (520) 670-5008Cost: $15 members and non-members

Oro Valley Kiwanis Club Every Wednesday 6:45 to 8 a.m. Resurrection Lutheran Church Outreach Center11575 N. 1st Ave.Information: Gary Kling (520) 818-3278

Pima Rotary ClubWeekly meetingEvery Friday except the last Friday of the month11:30 a.m. to 12:30 p.m.Chad’s Steakhouse 3001 N. Swan RoadInformation: www.pimarotary.orgNote: Bring your own lunch

Pima Rotary ClubMonthly membership mixerLast Friday 5 to 7 p.m.Location variesInformation: [email protected]

Project Management Institute (PMI) Tucson ChapterSecond Tuesday of the month5:30 to 7:30 p.m.Hotel Arizona181 W. BroadwayInformation: www.pmi-tucson.org or [email protected]: $25 members, $30 nonmembers

Rotary Club of TucsonEvery Wednesday NoonDoubletree Reid Park Hotel445 S. AlvernonRSVP: Mary Laughbaum(520) 623-2281www.tucsonrotary.org

Rotary Club of Tucson SunriseThursdays 7 to 8:10 a.m. Arizona Inn2200 E. Elm StreetInformation: [email protected]

Rotary Club of Tucson SunsetTuesdays 6 to 7:30 p.m.El Parador Restaurant2744 E. BroadwayInformation: (520) 349-4701

SAAEMA Monthly ProgramThird Tuesday 11:30 a.m. to 1 p.m.Viscount Suites Hotel4855 E. Broadway Information: www.saaema.org RSVP: m.sage@

wt-us.comCost: $20 members, $30 nonmembers

Saguaro Business ClubBusiness leads meetingEvery Thursday7 to 8 a.m.Mimi’s Café 120 S. Wilmot RoadRSVP: (520) 891-5430

Saguaro Rotary ClubEvery Tuesday12:10 to 1:15 p.m.The Manning House 450 W. Paseo RedondoInformation: Fred Narcaroti (520) 628-7648

Saguaro ToastmastersEvery Monday 6:30 p.m. Ward 6 offi ce 3202 E. First StreetInfo: Mark Salcido (520) 991-6127 or [email protected]://saguaro.freetoasthost.com

SCORESouthern Arizona free business counselingEvery Tuesday, Wednesday and Thursday 9 a.m. to 1 p.m.SCORE Main Offi ce330 N. Commerce Park LoopInfo: (520) 670-5008

SCORE Southern Arizona free business counselingEvery Wednesday 9 a.m. to noonOro Valley Library 1305 W. Naranja DriveCall Oro Valley Library at (520) 229-5300 to schedule

SCORESouthern Arizona free business counselingEvery Monday10 a.m. to 1 p.m.Nanini Branch Library 7300 N. Shannon RoadInfo: (520) 791-4626

SCORESouthern Arizona free business counselingFirst and third Tuesday9 a.m. to 1 p.m.

ASBA4811 E. Grant Road, Suite 261Call ASBA at (520) 327-0222 to schedule

SCORESouthern Arizona free business counselingEvery Tuesday9 a.m. to noonMarana Urgent Care Center (South Classroom) 8333 Silverbell RoadInfo: (520) 682-4314

Small Business Commission MeetingFourth Thursday 3 to 5 p.m.Mayor and Council chambers 255 W. Alameda First fl oorInfo: Ellen Hitchings, (520) 791-4343 ext. 245 or [email protected]

The S.M.A.R.T. GroupEvery Friday12 to 1:30 p.m.Nova Home Loans Multi-Media Conference Room6245 E Broadway Blvd., 5th Floor$25 Members $45 nonmembersContact: Dale Dillon Lips (520) 429-6000 or [email protected]

Society for Human Resource Management - Greater Tucson ChapterSecond Tuesday 11 a.m. to 1 p.m.DoubleTree, 445 S. Alvernon WayMembership:Garrett Kowalewski, (520) 647-9100 [email protected] by Thursday prior to meeting: www.shrmgt.org

Solutions ForumFourth MondayNoon to 4 p.m.Clements Insurance6245 E. Broadway, Suite 310Information: 1-800-716-9626 or (480) 200-5678RSVP requiredOpen only to business owners and divisional heads

CALENDAR


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 ACTION

NEW HIRES

HTG Molecular Diagnostics has hired Steve Hagan as vice president of molecular diagnostic sales. Hagan joins HTG Molecular Diagnostics from Ventana Medical Systems, a member of the Roche group, where he most recently served as the senior director of digital pathology and workfl ow commercialization.

Karen Herther, an Arizona registered geologist with 18 years of environmental regulatory compliance and project management experience, has joined Rosemont Copper as water resource superintendent. Herther will oversee and manage all water quality and quantity issues. She also will be responsible for all permit compliance associated with water issues and working with operations to coordinate

both long-term and daily water management.

Hilton Tucson El Conquistador has hired of Ronald Collins as the director of sales and marketing. As the principal of this vital function, Collins will oversee all aspects of sales and marketing for the award-winning resort which is set to complete a $6 million transformation this summer. Collins previously served as director of sales and marketing at The Westin La Cantera Hill Country Resort, San Antonio, Texas.

The Jewish Community Foundation of Southern Arizona has Tracy Salkowitz as executive director. Tracy has a master’s degree in social work from the Wurzweiler School of Social Work in New York and more than 30 years of non-profi t management experience. For the past 10

years, Tracy has been an organizational development consultant working with such non-profi ts as the Mary Wohlford Foundation; UC Berkeley Mack Center on Non-Profi t Management and UCSF Department of Emergency Medicine.

AWARDS

The University of Arizona Sarver Heart Center’s Investigator Awards Program announces the following recipients.

Novel Research Projects in the Area of Cardiovascular Disease and Medicine: Christopher Pappas Ph.D., received awards from the families of Stephen Michael Schneider and Frank Frazer and “Alex” Frazer for his project, “Elucidating the Cause of Dilated Cardiomyopathy in the Lmod2 Knockout Mouse.” Jingjing Liu M.D., Ph.D., received an award made possible by Florence Jaffe to study the

“Function of S1P Signaling on HDL Cholesterol Effl ux,” under the mentorship of Hussein Yassine, MD, assistant professor of clinical medicine, Section of Endocrinology. Janet Funk M.D., will use the J.G. Murray Award for her study of the “Effi cacy of a Botanical Dietary Supplement in Lowering Cardiovascular Risk in Type 2 Diabetes Mellitus (T2DM).” James Nguyen M.D., will use the Doris Griswold Award to study the “Characterization of LV Strain Patterns in Patients with Elevated Left Atrial Pressure and Pulmonary Hypertension.” His mentor

is Aiden Abidov, MD, PhD, associate professor of medicine and radiology. Dr. Abidov received the William and Dorothy Shaftner Award for his research project, “Double Inversion Radial Fast Spin Echo T2 Mapped Cardiac MRI in Acute MI Population for the Prediction of Short-term Major Adverse Cardiovascular Events.” Michael Teodori M.D., is the recipient of the Marjorie Hornbeck Award for his project, “Wireless Screening of Rheumatic Mitral Valve Disease in the Developing World.” Alexander Simon Ph.D., is the recipient of the Anthony and Mary Zoia Award for his project: “Role

of Connexins in Venous Valve Development.”

Pediatric/Congenital Heart Disease Awards: Ornella Selmin Ph.D., received the Walter and Vinnie Hinz Award to study environmental sensitivity in the developing heart. Jess L. Thompson M.D., will use the William “Billy” Gieszl Award for his project, “Parental and Sibling Distress in Families Caring for Children with Congenital Heart Disease.”

Heart Failure: An anonymous donor made possible two awards that support research focusing on heart failure. Raymond Runyan Ph.D., will study “Novel Mediators of Epithelial-Mesenchymal Transition in Cardiac Fibrosis.” Qin Chen Ph.D., will study “Nrf2 as a Cardiac Protective Gene.”

Sudden Cardiac Arrest Research Grants: Paul Krieg Ph.D., is the recipient of the Steven

M. Gootter Foundation Award, which will support his project “Cap2 Function during Cardiac Sarcomere Development.”

Heart Disease in Women Research Grants: Gifts from the Tucson Community will support the research of Betsy Dokken N.P., Ph.D., who is studying “Coronary Microvascular Dysfunction in Diabetic Women of Color: Treatment with Glucagon-like Peptide-1.”

The following researchers received awards that will support their projects for multiple years: John Kanady, a pre-doctoral candidate in physiological sciences, will receive support for two years from the Finley and Florence Brown Endowed Research Award. John Konhilas Ph.D., received the Edward and Virginia Madden Award, which is renewable for two years to support his project: “Impact of Pro-biotic Administration on

an Acute Coronary Event.”

ELECTIONS

Dennis Holden, a member of the Pima Community College Foundation Board of Directors since 2004, has been elected chairman of the board of directors for 2012-2013.

Holden is the director of customer relations/district operations for the Southern Arizona Division of Southwest Gas Corporation. Other offi cers include Greg Good, Good Law Firm PC as chairman-elect; Gloria Alvillar, human resources training consultant, vice chairwoman; Robert Ramirez, Vantage West Credit Union, secretary; Deborah Hutchinson, Clifton Larsen Allen LLP, treasurer; and Norman E Rebenstorf Jr., immediate past chairman. Cheryl House, certifi ed fundraising executive, is executive director.

TRACY SALKOWITZ DENNIS HOLDENSTEVE HAGAN KAREN HERTHER

NEWS TO YOU! Business news delivered to you from Inside Tucson Business. Go to http://bit.ly/37USS7 to sign up. BEST PART — IT’S FREE!


FINANCEYOUR MONEY

Four fi nancial tips for newly single women

Within a marriage, a man’s and a woman’s fi nancial circumstances are generally pretty much equal.

But if a divorce occurs, the woman’s situation tends to be somewhat more challenging than that of her ex-spouse.

Th at’s why, during this major life transition, you may want to meet with a professional fi nancial advisor to go over spending needs and cash fl ow, so you know what you absolutely need today — and how you can plan for tomorrow.

Before we get into some possible steps you can take, let’s look at some of the reasons women may fare worse than men, fi nancially speaking, following a divorce:

• Lower income — Th e average woman’s family income drops by 37 percent after divorce, according to the U.S. Census Bureau. And in many cases, divorce exacerbates a situation in which women were already trailing men in earnings. In fact, women still only earn 77 cents for each dollar earned by men, according to the U.S. Bureau of Labor Statistics.

• Smaller retirement accounts — Th e average balance in womens’ defi ned contribution plans, such as 401(k) plans, is only 60 percent of mens’ average balances, according to the fi nancial services research organization LIMRA (formerly Life Insurance and Market Research Associa-tion).

Of course, “averages” are just that — av-erages. But whether you recognize yourself in the above numbers or not, consider these suggestions:

• Create an emergency fund. Try to put six months’ to a year’s worth of living expenses in a liquid account. Once you’ve established this emergency fund, you won’t have to dip into long-term investments to pay for unexpected costs, such as an expensive car repair, a new furnace or a large medical bill.

• Contribute as much as you can aff ord to retirement accounts. Even if you will eventually receive some of your ex-spouse’s retirement funds, you need to take full

advantage of your own savings opportunities because it’s pretty hard to save “too much” for retire-ment. If money is tight, it won’t always be easy, but contribute as much as you can to your 401(k) or similar

employer-sponsored retirement plan. At a minimum, put in enough to earn the employer’s match, if one is off ered.

• Rebalance your investment portfo-lio. If you are now investing for yourself, you’ll want to take a close look at your asset mix to make sure it is appropriate for your situation. For example, your risk tolerance may be quite diff erent than that of your ex-spouse’s, so if you now have total control over an investment portfolio, you need to make sure it refl ects your needs and preferences. Consequently, you may need to “rebalance” your holdings.

• Above all, get some help. As men-tioned above, now is a good time to meet with a fi nancial advisor. And if you don’t have much experience in managing your fi nances, you may even fi nd it helpful to work with a trust company, which can collaborate with your fi nancial provider to manage your assets and can also provide a variety of other functions, including bill payment and recordkeeping. A trust company’s services can prove especially valuable to you and your family should you ever become incapacitated.

Unfortunately, a divorce may leave you feeling “at sea” in many areas of your life. But by following these suggestions, you can at least help keep your fi nancial ship in calmer waters.

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

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

Company Name Symbol Jul. 25 Jul. 18 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.04 0.04 0.00 0.03 0.52CDEX Inc CEXIQ.OB 0.01 0.01 0.00 0.01 0.10Providence Service Corp PRSC 12.67 12.96 -0.29 8.35 15.94UniSource Energy Corp (Tucson Electric Power) UNS 40.77 41.14 -0.37 32.96 42.10

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 8.02 8.36 -0.34 7.97 15.41AMR Corp (American Airlines) AAMRQ 0.51 0.52 -0.01 0.20 4.40Augusta Resource Corp (Rosemont Mine) AZC 1.74 1.81 -0.07 1.48 5.16Bank Of America Corp BAC 7.07 7.76 -0.69 4.92 10.10Bank of Montreal (M&I Bank) BMO 56.50 57.26 -0.76 50.95 65.21BBVA Compass BBVA 5.42 6.11 -0.69 5.30 10.57Berkshire Hathaway (Geico, Long Cos) BRK-B* 84.04 85.29 -1.25 65.35 85.35Best Buy Co Inc BBY 17.34 18.95 -1.61 17.26 29.50BOK Financial Corp (Bank of Arizona) BOKF 56.79 58.86 -2.07 43.77 59.59Bombardier Inc* (Bombardier Aerospace) BBDB 3.71 3.88 -0.17 3.30 5.99CB Richard Ellis Group CBG 15.10 16.02 -0.92 12.30 23.35Citigroup Inc C 25.79 27.34 -1.55 21.40 39.42Comcast Corp CMCSA 31.36 32.34 -0.98 19.19 32.78Community Health Sys (Northwest Med Cntrs) CYH 25.35 27.70 -2.35 14.61 28.79Computer Sciences Corp CSC 22.73 23.90 -1.17 22.19 36.56Convergys Corp CVG 14.47 15.06 -0.59 8.49 15.20Costco Wholesale Corp COST 93.75 96.09 -2.34 70.22 96.43CenturyLink (Qwest Communications) CTL 40.34 41.06 -0.72 31.16 41.84Cvs/Caremark (CVS pharmacy) CVS 44.54 48.42 -3.88 31.30 48.69Delta Air Lines DAL 9.47 10.59 -1.12 6.41 12.25Dillard Department Stores DDS 62.93 62.96 -0.03 38.99 72.46Dover Corp (Sargent Controls & Aerospace) DOV 50.94 53.17 -2.23 43.64 67.20DR Horton Inc DHI 17.98 18.64 -0.66 8.03 19.35Freeport-McMoRan (Phelps Dodge) FCX 31.43 33.22 -1.79 28.85 56.32Granite Construction Inc GVA 25.00 27.14 -2.14 16.92 30.49Home Depot Inc HD 51.07 50.98 0.09 28.13 53.28Honeywell Intl Inc HON 56.80 58.10 -1.30 41.22 62.00IBM IBM 191.08 188.19 2.89 157.13 210.69Iron Mountain IRM 31.28 32.13 -0.85 27.10 34.77Intuit Inc INTU 56.52 59.56 -3.04 39.87 62.33Journal Communications (KGUN 9, KMXZ) JRN 5.24 5.59 -0.35 2.69 5.72JP Morgan Chase & Co JPM 35.17 35.14 0.03 27.85 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 31.39 32.30 -0.91 25.73 36.67KB Home KBH 9.31 9.92 -0.61 5.02 13.12Kohls Corp KSS 47.86 49.18 -1.32 42.14 56.66Kroger Co (Fry's Food Stores) KR 21.25 22.06 -0.81 20.98 25.20Lee Enterprises (Arizona Daily Star) LEE 1.15 1.33 -0.18 0.49 1.81Lennar Corporation LEN 29.04 30.73 -1.69 12.14 31.90Lowe's Cos (Lowe's Home Improvement) LOW 25.60 25.71 -0.11 18.07 32.29Loews Corp (Ventana Canyon Resort) L 40.30 41.09 -0.79 32.90 41.80Macerich Co (Westcor, La Encantada) MAC 56.60 58.26 -1.66 38.64 62.83Macy's Inc M 34.54 34.80 -0.26 22.66 42.17Marriott Intl Inc MAR 35.34 37.03 -1.69 25.49 40.45Meritage Homes Corp MTH 33.00 35.86 -2.86 13.68 36.60Northern Trust Corp NTRS 44.57 46.40 -1.83 33.20 48.31Northrop Grumman Corp NOC 63.91 65.06 -1.15 49.20 65.78Penney, J.C. JCP 22.00 19.45 2.55 19.06 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 10.02 10.90 -0.88 3.29 11.48Raytheon Co (Raytheon Missile Systems) RTN 55.08 56.80 -1.72 38.35 56.92Roche Holdings AG (Ventana Medical Systems) RHHBY 42.62 43.60 -0.98 36.50 46.40Safeway Inc SWY 15.00 16.62 -1.62 14.73 23.16Sanofi -Aventis SA SNY 37.85 38.68 -0.83 30.98 39.44Sears Holdings (Sears, Kmart, Customer Care) SHLD 48.80 54.73 -5.93 28.89 85.90SkyWest Inc SKYW 6.81 8.14 -1.33 6.25 14.32Southwest Airlines Co LUV 8.47 9.53 -1.06 7.15 10.17Southwest Gas Corp SWX 44.12 45.90 -1.78 32.12 46.08Stantec Inc STN 26.05 26.79 -0.74 20.96 32.79Target Corp TGT 60.36 61.47 -1.11 45.28 62.18TeleTech Holdings Inc TTEC 16.05 16.73 -0.68 14.04 20.83Texas Instruments Inc TXN 26.63 27.66 -1.03 24.34 34.24Time Warner Inc (AOL) TWX 38.55 38.92 -0.37 27.62 39.49Ual Corp (United Airlines) UAL 20.41 23.19 -2.78 15.51 25.84Union Pacifi c Corp UNP 117.39 118.90 -1.51 77.73 123.56Apollo Group Inc (University of Phoenix) APOL 28.03 30.87 -2.84 26.43 58.29US Airways Group Inc LCC 11.15 13.80 -2.65 3.96 14.51US Bancorp (US Bank) USB 33.29 33.24 0.05 20.10 33.99Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 72.08 73.08 -1.00 48.31 73.46Walgreen Co WAG 34.65 31.10 3.55 28.53 39.79Wells Fargo & Co WFC 33.16 34.00 -0.84 22.58 34.59Western Alliance Bancorp (Alliance Bank) WAL 8.92 9.54 -0.62 4.44 9.60Zions Bancorp (National Bank of Arizona) ZION 17.88 19.50 -1.62 13.18 22.82Data Source: Dow Jones Market Watch

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


INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

It was a harsh message when Wells Fargo national economist Mark Vitner said it to a Tucson audience in February and he re-em-phasized the point in his national mid-year update this month: keep the housing mar-ket’s improvements in perspective.

Despite improving conditions, this “is not the start of the next great housing boom.”

As the keynote speaker before the Pima County Real Estate Research Council in February, he warned that full recovery from the Great Recession may take 10 years.

“Even with recent gains, new home sales and construction remain shadows of their former selves. Residential construction cur-rently accounts for just 2.3 percent of GDP, down from 6.3 percent at the peak and 4.5 percent for a more typical period,” Vitner said this month in his mid-year report.

While the economy slowly corrects, rent-als have become hot for several reasons. New household formation has slowed as young people choose to rent due to job un-certainty, and investors are buying foreclo-sures to convert into rentals.

As a result, there is a “mini-surge” in apartment construction at the same time the traditional home market is gradually improving.

Vitner, who is often quoted in the Wall Street Journal, said this month — as he did in February — that job creation will drive the economic recovery.

468 new apartments One developer alone, Scottsdale-based

MC Companies, will add 468 units to Tuc-son’s “outdated, tired” apartment inventory this year. Th e Place at Canyon Ridge, 2656

W. Broadway, will feature 116 units and Th e Place at Creekside, 9971 E. Speedway, will have 208 units in its fi rst phase opening.

MC Companies is a partnership between industry experts Ross McCallister, who lives in Tucson, and Ken McElroy of Scottsdale. Founded in 1985, the fi rm has seven multi-family properties in the Tucson region.

Since less than 2,000 units have been added in the last 10 years, “Tucson’s de-mand for quality, aff ordable apartment community homes has exceeded the cur-

Keep housing improvement in perspective

THE PULSE: TUCSON REAL ESTATE

7/16/2012 7/9/2012

Median Price $151,000 $145,000Active Listings 4,083 4,048New Listings 372 340Pending Sales 390 390Homes Closed 241 188Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 3.50% 3.75%APR 3.75% 4.00%APR 4.95% 4.95% 3.50%

15 YEAR 3.00% 3.125%APR 3.13% 3.25% APR 4.22% 4.22% 3.00%

3/1 ARM 2.88% 3.125%APR 2.88% 3.125% APRThe above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000

Information provided by Randy Hotchkiss Peoples Mortgage Company, P.O. box 43712 Tucson, AZ 85733. (520) 324-0000. MB #0905432. Rates are subject to change without notice based upon market conditions.

7/24/2012

The Place at Creekside, 9971 E. Speedway, will add 352 apartments to Tucson’s inventory.

rent inventory for some time,” said McCal-lister. “We believe the Tucson economy is strong and there is a high demand for qual-ity rental product. Th e Place at Canyon Ridge is the fi rst of three projects we are building to help meet that demand.”

Th e 9-acre Canyon Ridge complex cost $8.12 million to develop. Th e 11½-acre Creekside project was a $13.27 million in-vestment. Both feature several fl oor plans, clubhouse, pool, spa, fi tness center and up-graded amenities. At 144 units, Creekside’s second phase will open later this year.

For both developments, Tucson’s Acorn Associates, 4400 E. Broadway, was the ar-chitect and MCCW, Scottsdale, was the gen-eral contractor.

McCallister, with 30 years of develop-ment and fi nance experience, was president of the McCallister Co. before MC Compa-nies. He is a licensed general contractor and real estate broker. McElroy oversees the fi rm’s asset portfolio and daily operations.

Locally, MC Companies also own Puesta del Sol, 2299 N. Silverbell Road; Village at the Foothills, 2600 W. Ina Road; Th e Place at Edge-

wood, 550 N. Harrison Road; and Th e Place at Tierra Rica, 3201 W. Ina Road. Th e company’s interests include 10,000 apartments in Arizo-na, Nevada, Oklahoma and Texas.

Over-sold in 85756For a fourth consecutive month, more

homes sold in the southside 85756 zip code than were offi cially listed as for sale. Th e area around Tucson International Airport between Interstates 10 and 19 has been popular due to a consistent supply of fore-closures and other low-priced properties.

More houses sold in the zip code than “active” listings due to a timing quirk, ac-cording to the Tucson Association of Realtors Multiple Listing Service. For example, a list-ing may expire after the home enters escrow.

With 37 offi cial listings, four more homes were sold in the zip code in June. Extra sales were even higher in zip code 85706 where 44 homes with 34 active listings. Th e area also is near the airport around Drexel Road and Al-vernon Way.

In June, the most listings were in zip code of 85739 at the northern end of Pima County where 223 homes were for sale. Th e area is along North Oracle Road from Catalina State Park north to the junction of State Routes 77 and 79.

Th e next two highest areas for active list-ings were the central Catalina Foothills at 198 and Green Valley at 197.

Sales and leases • Tuesday Morning leased 10,000 square

feet at 6884 E. Sunrise Drive, Suite 150, in Ventana Village from Westwood Financial Corporation, represented by Craig Finfrock, Commercial Retail Advisors. Th e tenant was represented by Jon Radus, Studley Inc.

• Aff ordable Workstations leased 7,685 square feet at 610 N. Ninth Ave. from Rich Rodgers Central Inc., represented by Bran-don Rodgers, Picor Commercial Real Estate Services.

• HiTemp Metals leased 7,383 square feet at 4650 S. Coach Drive, Suite 100, from Butterfi eld Tech Center II, represented by Jon O’Shea and Rob Fischrup, Vast Com-mercial Real Estate. Gary Best, Keller Wil-liams Commercial, represented the tenant.

• Tucson Gymnastics Center leased a 5,700 square-foot building at 4631 S. Station Master Drive from Dunlop Oil Inc., repre-sented by Dave Gallaher, Tucson Industrial Realty. Th e tenant was represented by Ron Zimmerman, Grubb and Ellis.

• Service Solutions leased 3,600 square feet at 1121 W. Grant Road, Suites 410-412, from Sloat Family Partnership, represent-ed by Stephen Cohen and Russell Hall, Pi-cor Commercial Real Estate Services.

Email news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.

Roge

r Yoh

em


One of the challenges of my job can be coming up with an idea for this column every week. I get a little nervous if I don’t have at least one idea fl oating around my head by Monday. I read. I watch TV. You never know where there might something worth pursuing.

So there I was Monday night watching another Food Network marathon of Guy Fieri’s “Diners, Drive-ins and Dives” when my mind wandered thinking of the places in Tucson that had been featured on the show. I thought. And I thought some more.

Surely they must have visited at least a few Tucson places on Triple D, as Fieri likes to call it. It’s not like the show has a very high bar. And even if it had, Tucson isn’t lacking for some interesting twists that could be up to it. We’re not overrun with chains so there’s been room for individual ideas to try to shine.

I fi nally gave up and found a website called Flavortownusa.com that lists the locations the show has visited over the six years it has been on the air.

Out of 140 episodes, not once has a Tucson diner, drive-in or dive ever been featured. Th e show has been to 13 places in Arizona — twice to spots in Flagstaff and all the other visits were in the Phoenix area, including a Chandler gelato shop that was out of business three months after it was featured in August 2009.

I wondered if Tucson was getting short shrift from Triple D? Were other cities being bypassed, too? With an estimated 2011 population of 525,796, Tucson is the nation’s 33rd largest city. It turns out Triple D’s cameras haven’t been to three cities larger than Tucson — Columbus, Ohio; El Paso; and Louisville, Ky.

As metro areas go, Tucson is the 52nd biggest, according to the Census Bureau. Flavortownusa.com, shows seven others that are bigger have also been shunned.

But look what they are. Riverside-San Bernardino-Ontario, Calif., where more than 4.2 million people live, isn’t much more than a poor relation suburb of Los Angeles. I’m guessing Orlando, Fla., missed out due to the fact that most of the 2.1 million people living there arrived in the boom since the Walt Disney Company showed up and they all support the theme-restaurant chains the area has spawned.

Th e other metros that haven’t had places featured on the show are Columbus; Louisville; Raleigh, N.C.; Birmingham, Ala.; and Rochester, N.Y. Th at’s not exactly a list of places known for their food.

But Tucson can be. As Patrick McNamara reported in Inside Tucson Business last month, the Tucson Metropolitan Tucson Convention and Visitors Bureau is pursuing a campaign to proclaim this region as home to the “best 23 square miles of Mexican food in the U.S.”

Bring on those who think they can top us. Let’s make a name for ourselves.Tucson needs to get noticed.

Contact David Hatfi eld at dhatfi [email protected]

or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Put Tucson cuisine on the map

EDITORIAL

Get on board to fi x air serviceTh ere will be some who see this month’s decision by

Frontier Airlines against resuming its fl ights at Tucson International Airport as another failure of and for the Tucson region.

For starters the decision has more to do with the fragile condition of Frontier’s own fi nances.

Beyond that, what’s more important is the lesson Tucson takes from the decision.

In an airline industry that seemingly is in a constant state of fi nancial struggle, Frontier Airlines is desper-ately trying to reinvent itself to become more attractive to a potential buyer.

It happens in other industries. Th e goal is to reduce costs while cranking up productivity to levels that can’t always be sustained.

We can’t help but think Frontier’s demise in Tucson was at least partly its own doing. Founded in 1994, the latest incarnation of Frontier has built a loyal customer base in its home town Denver, but has failed several times to expand beyond that. A 2009 merger with Midwest Airlines made it a major player in both Milwaukee, Wis., and Kansas City, Mo., but that is no longer the case. Earlier attempts to expand service in California and develop other “focus cities” also failed. Each time Frontier retreated to its customer base in Denver.

For Tucsonans that became a one-way fl ight. In 2009 and 2010 — when the Colorado Rockies came to Hi Corbett Field for spring training — Frontier was competitive and in some months carried the most passengers between Tucson and Denver.

But since then, Southwest Airlines has started fl ying the route and United has long been Denver’s dominant airline with its major hub there. With no loyalty to Frontier, Southern Arizonans chose Southwest and United for their fl ights to and through Denver.

It’s too bad. Frontier was a good airline. Frontier has faced and will face situations similar to Tucson in other cities. And it will cut service to more cities. For Frontier, Tucson may have been the canary in the coal mine.

More importantly is what Tucsonans take away from the situation. Airline service at Tucson International Airport isn’t what most of us would like but it’s up to us to change that.

Th e Tucson Metro Chamber is leading an air service task force in which there has been talk of businesses stepping up to develop fi nancial incentives and deliver passengers to help sustain new airline service. Airlines are responding when communities put money where their mouths are.

As an example, just this week Frontier announced it will start fl ights three days a week between South Bend, Ind., and Denver. To get it, South Bend is using a combination of $750,000 in grant money from the U.S. Department of Transportation’s Small Community Air Service Development plus $475,000 from the local community to establish the fl ights.

In light of Frontier’s circumstances, South Bend’s investment may not be so savvy long-term but it speaks to the realities of what needs to be done.

Th e Tucson Metro Chamber next month is planning to unveil the results of a business travel demand survey that was done in June. More than 500 companies participated. Th e unveiling will take place as part of a 90-minute presentation starting at 3 p.m. Aug. 8 at the Doubletree at Reid Park Hotel, 445 S. Alvernon Way. It will be the fi rst step to improving Tucson’s air service. Send an email to Arlene Chiovetti at [email protected] and make sure your business is represent-ed. Businesses need to get on board.


OPINIONWAKE UP, TUCSON

We think the next president of the United States will be...We’re going on a limb to call the 2012

Presidential election. Given the avalanche of bad economic news dealt to the Obama administration almost daily, come January the United States will be swearing in a new president and making history of the wrong president for the wrong time.

In four years, the U.S. has gone from hope and change to desperation with full-on attacks on the business sector. Th e economy that was dealt to President Obama was already in free-fall but with Obamacare and Dodds-Frank Wall Street reform legislation, the federal government injected just enough uncertainty to bring it to a grinding halt.

Let’s look at the headwinds facing the Obama campaign:

Jumping off the train Most of the groups that bought into the

“Hope and Change” message four years ago are still hoping for change but have lost interest in this campaign.

Th e youth vote in 2008, which was touted as the biggest since John F. Ken-nedy’s election in 1960, is evaporating. Students are leaving college owing big money on loans but with no jobs.

Th e Jewish vote, which has historically gone Democratic, is none too thrilled with Obama’s stance on Israel.

Roman Catholic organizations have fi led lawsuits over actions regarding reproductive rights.

Th e biggest voting block to switch in Novem-ber will be the independent voter, who usually breaks toward the challenger.

In eight key state primaries Obama didn’t fare as well as Bill Clinton did in his 1996 re-election bid. Th e total vote in Massachusetts, New Hampshire, Oklahoma,

Alabama, Georgia, Ohio, Tennessee and Vermont for Clinton was nearly 1.7 million to Obama’s 1.2 million this year. In West Virginia, Keith Judd, who is serving a 17½ year federal prison sentence for extortion, took 41 percent of the vote — 72,000 to Obama’s 106,000.

It’s the economy, stupidEvery voter block and every demographic

in every state is worried about the stagnant economy. Th e president had his shot and it has been a spectacular failure.

More than $3 trillion is sitting on the balance sheets of private fi rms in the U,S. Businesses aren’t investing because they aren’t going to invest capital in the current regulatory and taxing minefi eld.

MoneyObama outspent John McCain 3-to-1 in

2008. Th at won’t happen this year. In June, the Romney campaign, the major super political action committee (Super PAC) supporting it and the Republican National Committee raised $92.5 million to the $69.1 million raised by Obama, the major Super PAC supporting him and the Democratic National Committee. According to fi gures on fi le with the Federal Election Commis-sion, the Romney campaign has $191.2 million cash on hand to the Obama campaign’s $146.8 million. Obama acknowl-edged the situation when, according to the Daily Beast, he said, “(I)f things continue as they have so far, I’ll be the fi rst sitting president in modern history to be outspent.”

State-by-state

Currently, Democratic and Democratic-leaning states give Obama 217 electoral votes while Republican and Republican-leaning states give Romney 206 votes. Among the “up for grabs” states, Michigan, Flordia, Virginia, Iowa, Ohio and Colorado — show a shift away from Obama to margins that now are down to 3 percentage points or less. Add the electoral vote totals in those six states and you’re looking at 297 for Romney to 216 for Obama. Th at still leaves Wisconsin, New Hampshire, Nevada and New Mexico up for grabs.

So get ready for a new president and a bit more pain. If Ronald Reagan’s fi rst two years are an indication, some major steps have to be taken to right the economic ship that over the past four yeas has seen central bankers gone wild, a 2,300-page Obamacare bill that no one has yet to fully comprehend, student loan bubbles, bank regulations that are choking main street and millions of jobs vanished.

Oh, and you still have to fl ip the current Democratic-controlled stagnant U.S. Senate that has failed to produce a budget in three years. But that’s another column for another day.

Contact Chris DeSimone and Joe Higgins at

[email protected]. They host “Wake Up

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

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

GUEST OPINION

Don’t blame the RTA for Broadway widening projectBy Garry Duff yfor Inside Tucson Business

Critics of the project to widen Broadway from Euclid Avenue to Country Club Road are wrongly aiming their ire at the Regional Transportation Authority (RTA).

Th e project was initially planned by the City of Tucson in the late 1980s. It was submitted for inclusion – by the city – into the massive regional transportation plan in 2005 that was approved by voters county-wide in 2006.

“Broadway is being planned, designed and built by the city of Tucson through its department of transportation,” RTA Board Chair Satish Hiremath said recently. “Th ey are responsible for delivering the project that meets the functional goal as described on the ballot,” added Hiremath, who is also mayor of Oro Valley.

Th e RTA typically does not design or build roadway projects. It is the fi nancial manager of the hundreds of multi-modal projects - roadway, public transit, public safety and environmental and economic vitality elements - contained in the $2.1 billion regional transportation plan.

Th e $71.3 million Broadway project is to

be done in phases, with actual construction to begin in 2016. Planning by the city transportation department for a fi nal design is to take about 18 months.

Th e RTA is to fund about $42 million of the project, with Pima County bonds adding another $25 million. Th e city is to contribute only about $3 million.

Th e Broadway plan submitted by the city and approved by voters calls for widening that segment of Broadway to six travel lanes in each direction, adding two dedicated bus lanes in each direction, bicycle lanes in both directions, raised and landscaped medians, pedestrian-friendly sidewalks, and continuous street-lighting.

Critics claim the proposed widening as contained in the 2006 regional transporta-tion plan was based on a fl awed late 1980s Broadway Corridor Transportation Study by the city that anticipated vehicular fl ows higher in volume than will likely be realized in the near future.

Th ey also say the project footprint will wipe out many existing businesses and homes along the route although more than 25 percent of the aff ected buildings are already the property of the city.

Th e Broadway widening is part of a larger scale plan to reduce traffi c bottle-necking in the downtown area, and to divert traffi c bound for Interstate 10 from going through the downtown area.

Other projects include the widening of 22nd Street, and the extension of the Barazza/Aviation corridor — also called the Downtown Links project — from its current termination at Broadway to I-10 by way of Sixth Street Street and St. Mary’s Road.

Before the plan went to voters on May 16, 2006, the RTA board approved a resolution assuring voters that projects in the 20-year plan would be carried out as promised.

Th e core of the resolution states that “Th e voters, in approving the expenditure plan, are relying on the planned improve-ments actually being carried out.”

Th e RTA has never been asked to downsize an regional transportation plan project approved by voters.

Th e RTA did allow the Town of Marana to modify a project to widen Camino de Manana to four lanes instead of two lanes as contained in the 2006 voter-approved regional transportation plan. Marana agreed

to pay the increased costs of the change. Th e diff erence with that change from

what’s being suggested for Broadway is that Marana’s requested change did not reduce the functionality of the project, but, rather, increased it, according to Jim DeGrood, RTA transportation services director.

Th e Tucson Transportation Department has appointed a 13-member Citizens Task Force to take community input on the project design as it progresses.

Th e RTA Administrative Code recognizes the value of citizen input through the planning process, and acknowledges the role of the Citizens Task Force on the Broadway project, as well as the role of the Citizens Accountability for Regional Transportation (CART) committee in the oversight of the RTA Plan’s implementation.

Th e RTA’s MainStreet Business Program will provide assistance and information to business owners during the process.

Garry Duff y is a consultant to the

Reginal Transportation Authority. During his

career in journalism he covered transporta-

tion in Pima County for the Tucson Citizen

newspaper for eight years.

JOE HIGGINS

CHRIS DeSIMONE


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OPINIONGUEST OPINION

Pima County is a regional leader in economic developmentIt’s very easy to have an opinion, since

it’s not necessary to trouble yourself with the facts.

In their July 13, 2012, opinion, Chris DeSimone and Joe Higgins charge that the City of Tucson and Pima County have created a climate of fear that dis-courages economic development. In response, here are some facts.

Since 2006, Pima County has awarded 180 projects; spending $920 million and creating or sustaining 12,665 jobs, primarily in the construc-tion and building-related industries.

Higgins and DeSimone acknowledge “positive changes have brought in the new leadership of ... Brent DeRaad as president and CEO at Visit Tucson – you may still know it as the Metropolitan Tucson Convention and Visitors Bureau.”

Th ey fail to mention, however, that Pima County appointed the stakeholders audit committee that reviewed the performance and operations of the MTCVB. Th e audit committee, comprised of tourism industry executives, developed and will monitor implementation of 24 recommenda-tions to enhance MTCVB performance.

Th e county’s audit process, along with revitalized MTCVB leadership, will help

increase tour-ism revenue for our region.

Higgins and DeSimone also omitted the fact that Pima County’s funding support of the MTCVB has increased, while other jurisdiction’s con-

tributions are declining.Th e opinion also accuses Pima

County of having “pistol whipped en-gines that could drive the economy” and cites small business owners, Ray-theon, hotels and biotech companies.

Th e county’s “pistol whipping” activities include being the only area jurisdiction to commit resources – nearly $6 million – to purchase land for the buff er necessary for Raytheon protection and expansion.

Th is county land is ultimately slated for the creation of an aerospace/defense busi-ness and research park, which will house industry-related businesses and include incubation of new small businesses.

Higgins and DeSimone also assert “We are a region run by government offi cials

who fi ght to keep mines out.” Not true. Pima County approved an agreement to reopen the Oracle Ridge Mine, which could create up to 240 new jobs. Oracle Ridge is an underground mine that will operate with minimal environmental impacts.

Th e county also supported expan-sion of Freeport-McMoRan Sierrita and the nearby Caterpillar Proving Ground.

Th e county has also been busy with ex-tensive economic development activities, including:

• Multi-year planning for an aerospace/defense corridor bond program to pro-vide transportation infrastructure and other necessary improvements to protect existing, higher-wage jobs and encourage expansion and new business development.

• Providing tax incentives and sup-porting a Foreign Trade Zone designa-tion for the expansion of Roche/Ventana Medical Systems, which is ultimately expected to add 500 higher wage, clean industry jobs in Pima County.

• Foregoing the 2012 scheduled increase in the roadway development impact fee.

• Lowering sewer connection fees by 30 percent.

• Developing and constructing 40 miles of bicycle, jogging and walking

paths known as “Th e Loop,” contributing to Tucson’s recent Number 1 ranking of top bicycle towns by Outside magazine. Th e Loop brings tourism revenue to our region and contributes to the overall health and wellbeing of our community.

• Advocating at the local and fed-eral levels in support of the missions of Davis-Monthan Air Force Base and the Arizona Air National Guard; and in partnership with local, state and federal organizations, opened the Kino Veter-ans Workforce Center, dedicated exclu-sively to job placement for veterans.

• Working closely with Th e University of Arizona on a number of current and devel-oping partnerships that include funding for physician education and medical service delivery, an increased University presence in downtown Tucson, and opportuni-ties for increased geotourism, including a potential visitors center on Tumamoc Hill.

It isn’t hard to see that Pima County is a regional leader in economic development. You just have to open your eyes and look.

C.H. “Chuck” Huckelberry is Pima County Administrator.

C.H. HUCKELBERRY

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