Inside Tucson Business 12/21/12

theEnd of the darkest daysStatistically, the housing nightmare is finally over

Page 19

Tribe’s succession plan succeedsPascua Yaqui Tribe to self-manage gaming

Page 6

Another ‘Peach’ of a renovationRehab of Armory Park Apartments is underway

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Your Weekly Business Journal for the Tucson Metro Area

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Did holiday shopping season already go over the ‘fi scal cliff ?’By Mark GuarinoTh e Christian Science Monitor

Th e fi nal stretch to Christmas Day will make or break retailers’ holiday shopping season following a sluggish start that has been been hampered by turbulent weather conditions in some parts of the U.S. and more recently by the debate over the fi scal cliff .

Retail sales in November inched up just 0.3 percent compared with October, according to the U.S. Com-merce Department.

Black Friday, the day after Th anksgiving, appeared at fi rst glance to indicate a signifi cant downturn for retailers. According to MasterCard SpendingPulse, which tracks retail sales via all forms of

payment, including cash and check, Black Friday sales this year totaled about $18.9 billion, a 4.9 percent drop from 2011.

However, because most retail-ers opened their doors earlier than normal on Th anksgiving Day, an extra $6.2 billion was spent, hiking the combined spending for the two days by 2.1 percent over the same days in 2011.

Retail spending overall eased in early December, which Michael McNamara, vice president of re-search and analysis at MasterCard Advisors SpendingPulse, attributes primarily to headlines about the looming fi scal cliff of tax increases and spending cuts that are caus-ing consumers to think twice about committing to big ticket spending.

According to a survey released last week by the National Retail Federation, almost half of holiday shoppers, 47.8 percent, said the state of the economy will aff ect how much they purchase; 46.9 percent of those surveyed said they will pursue sales more than before, and 36.7 percent said they would com-parative shop online.

Th e survey polled 8,333 shop-pers from Dec. 4 to Dec. 10 and has a margin of error of plus-or-minus 1 percent.

For retailers this year, the fi nal 10 days before Christmas are crucial, according to SpendingPulse: Last year, the time period accounted for 24 percent, or $147 billion, of total holiday season sales. McNamara says sales in all retail sectors are

relatively even at this point into the season, although there is a slight increase for furniture and furnish-ings, primarily due to the “general stability and mild recovery in the housing market.”

Also potentially helping sales during this fi nal stretch is the cal-endar: Last year, the fi nal Saturday landed on Christmas Eve, which hurt sales. Th e extra full shopping day this season is expected to give retailers a boost that equals or surpasses the weekend following Th anksgiving.

Overall, the National Retail Fed-eration forecasts that holiday sales will grow 4.1 percent to $586 billion compared with last year. Th e orga-nization includes the full month of November in its estimation.

LEARNING

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John Hildebrand, left, shows a mouse brain to students, from left: Araceli Caraveo, Marsayah Arviza and Joya Summa.Pa

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UA, business leaders share their expertise inside Wright Elementary School

PAGE 3

2 DECEMBER 21, 2012 INSIDE TUCSON BUSINESS

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NEWSUA, business leaders join to make a diff erence at John B. Wright Elementary School

By Patrick McNamaraInside Tucson Business

A classroom full of fourth graders marvel and squeal as Gail Burd pulls a preserved hu-man brain from a bowl and holds it aloft.

“I get off on getting the kids excited about science,” said Burd, vice provost of academic aff airs and professor of molecular and cel-lular biology at the University of Arizona. “I like them to have a positive event related to science.”

Burd and her husband, John G. Hilde-brand, regent’s professor and head of the department of neuroscience at UA, were visiting John B. Wright Elementary School, 4300 E. Linden St., teaching the fourth-grade classes about brain biology.

“I want very much for kids to think well

of the university,” Hildebrand said. “I don’t want them to think it’s an alien place and not for them.”

Hildebrand and Burd are among the more than 30 UA professors and research-ers who over the past year have spent time at Wright School, teaching lessons and expos-ing grade-school kids to the sciences.

Th e program of bringing UA academics to the Tucson Unifi ed School District (TUSD) school was the inspiration of Kathleen Per-kins, chair of the UA’s Bio5 Institute business advisory board.

“It kind of pulled me in,” Perkins said. “When I walked out the door I had a real con-nection with the school and the kids.”

Perkins said she had driven past the school many times and contemplated volun-teering before she stopped and spoke with

Principal Maria Marin. Perkins decided the best way to help

out the school was to work her connections through the university to bring some of the top researchers in the country to give lec-tures and teach lessons to the elementary school students.

In addition to the UA connection, other private-sector players have donated time and work to the midtown school, which serves one of TUSD’s most economically challenged populations. Nearby neighbor-hoods along Columbus Boulevard include aging houses and apartments as well as trail-er parks.

Crime is a problem in the area. Th is year, fi ve murders and nearly 500 burglaries have occurred in and around the areas the school serves, according to crime statistics on the

CONTINUED ON PAGE 4

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A preserved human brain, presented by UA professor Gail Burd, captivated students.

More Arizonans traveling,and farther, this holiday

About 1.8 million Arizonans will leave their homes for the holidays, mostly to visit friends and loved ones, according to AAA Ari-zona. Th e number is an increase of about 1.2 percent over last year.

AAA defi nes the holiday period as from Saturday (Dec. 22) to Jan. 1.

Of the Arizonans who are traveling, 1.6 million will take to the roads to get to their destinations. Th at represents about 28 per-cent of the state’s population.

AAA said about 137,000 will fl y. Th at’s a 3.8 percent increase over 2011.

Besides the increase in numbers, Arizo-nans are traveling farther; an average of 1,038 miles, up about 77 miles from last year.

Despite the increasing numbers of trav-elers and distance, they’ll be spending less. AAA estimates median spending will amount to $694, down about 10 percent. One reason for that is the price of gas this year. Transpor-tation expenses account for the biggest chunk of what travelers spend.

AAA uses IHS Global Insight research to develop its annual travel forescasts, which it has been issuing for about 20 years.

Inside Tucson Business tochange deliveries Jan. 18

In four weeks, subscribers to the print edi-tions of Inside Tucson Business will start re-ceiving their weekly copies of the publication early Friday mornings via direct delivery in the same manners as other newspapers are delivered in the Tucson region.

Inside Tucson Business’ circulation de-partment is continuing its push to encour-age subscribers to make sure their delivery address is accurate and capable of receiving direct delivery of newspapers.

Circulation Manager Laura Horvath says she has been receiving a steady stream of inquiries from subscribers. To help answer those questions, she has posted a series of questions and answers on our website — www.InsideTucsonBusiness.com . You’ll fi nd it about the center of the home page, just be-neath the latest news reports but above the new blog posting section called “Quick Hits.”

Th e delivery change takes eff ect with the issue of Jan. 18. Delivery will still be available via U.S. Postal Service to subscribers who specifi cally request it. Also, subscribers liv-ing outside the direct delivery area or using post offi ce boxes will continue to receive their copies of Inside Tucson Business by mail.


Tucson Police Department’s website. In addition, the school population is 100

percent Title I, which means all of its stu-dents qualify for the free and reduced lunch program.

Another challenge for the school has been a high mobility rate. Nearly half of Wright’s students move at some point during the school year.

With more than 1,000 hours spent vol-unteering at Wright, Perkins has become a common sight for the children, many of whom hug her and grab her hand as she walks the halls.

“Science has been the hook at John B. Wright,” Perkins said.

Students also have heard from neurolo-gists, physicians, astronomers, optical scien-tists, mathematicians and dendrochronolo-gists.

Th e Research Corporation for Science Advancement has contributed to the school. President, James Gentile, a former professor of biology and chemistry, is a regular partici-pant at school lectures.

T-shirts that read “Future Scientist” were given to all of the students at the school by the Research Corporation for Science Ad-vancement.

Th e students have responded with enthu-siasm. A visit from a microbiologist was par-ticularly memorable.

Principal Marin recalled how months af-ter the visit, a second-grade student showed her a picture she had drawn of herself work-ing alongside the scientist who taught the lesson about salmonella and other bacteria.

“She said, ‘I know what I want to do with my life,’” Marin said. “It was really powerful.”

Th e lessons have provided the students with exposure to and a connection with people who work in the various sciences that might otherwise seem foreign to them.

“Th ey’re not going to get that from You-Tube or a slideshow,” Marin said.

Wright School also has received help from others in the business community. Sundt Construction recently completed an exten-sive reconstruction of a garden at the school.

Building the garden was in line with the company’s philanthropic ideals, said Kurt Wadlington, building group leader for Sundt in Tucson. But there was a more altruistic reason for helping as well.

“All of our businesses exist because of this community,” Wadlington said. “Giving back is an important thing to do for all of us.”

Another reason, Wadlington admits, might be viewed as self-serving: “It makes people feel good to help out.”

Hildebrand agreed, and said that the ex-perience of spending time in classrooms full of children was gratifying. Even for research-ers accustomed to spending time alone in the laboratory and might be reluctant to speak with children, Hildebrand said they’re usually surprised after they take the time to speak with students.

“Once somebody tries it, they get hooked,” he said.

TUSD Superintendent John Pedicone said the private-sector help at the school has been a factor in students’ academic improve-ment. He also credits Perkins for her work at incorporating the UA into the school and to Marin and her staff .

“It was a C school, but working real hard,” Pedicone said. “John B. Wright is a B school

today, and I don’t think it’s a B school by chance.”

He said the private-sector working with the school has helped to develop a vision for TUSD to follow. And it’s not unique to Wright.

Members of the business community and private sector contribute to schools across the district.

“It’s critically essential that the business community and the university form a bridge with elementary schools,” Marin said. “Build-ing the connection with people who are knowledgeable and passionate is the key.”

Perkins said people shouldn’t only look at helping at schools as a personal quest, but as being an active member of the community.

“Th is is not a self-realization issue,” she said. “It’s participating in a societal issue.”

Th ere’s also the chance that some of the students, many of whom Sundt’s Wadlington said intently watched the garden construc-tion process, could become the next genera-tion of workers in the construction industry.

“I would hope a few of them would get interested in construction,” he said. “We still need people who are interested in construc-tion as a profession.”

Exposing children to people who work in various professions has been one of the big-gest eff ects the infl ux of university and pri-vate sector volunteers has had at the school, Marin said.

“Every child in that room may not be-come a neuroscientist,” Marin said. “But I’m sure they connected with a handful of kids.”

Contact reporter Patrick McNamara at

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

WRIGHT ELEMENTARY CONTINUED FROM PAGE 3

John Hildebrand, left, shows a mouse brain to John B. Wright Elementary students, from left: Araceli Caraveo, Marsayah Arviza and Joya Summa.

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With or without gun lobby,Grijalva calls for new laws

Regardless of whether “pro-gun activists” are willing to negotiate, U.S. Rep. Raúl Gri-jalva, D-Ariz., says it is time to enact stricter gun control laws.

Grijalva issued some of the strongest wording coming from any politician in the wake of the Dec. 14 shootings at Sandy Hook Elementary School in Newtown, Conn., in which 20 6- and 7-year-olds and six of their school leaders were killed by a man wield-ing a semi-automatic weapon. He also refer-enced the Jan. 8, 2011, shootings in Tucson that killed six people at a Congress On Your Corner event put on by then-Rep. Gabrielle Giff ords.

“Th e scandalous availability of highly lethal weapons to even the least qualifi ed, least competent and most dangerous among us has gone on long enough,” said Grijalva, whose district includes downtown and Tuc-son’s west side. “If pro-gun activists will not negotiate in good faith, it is time for the coun-try to move on without them.”

U.S. Rep. Ron Barber, D-Ariz., who was among those shot Jan. 8, 2011, worded his stance less emphatically, saying in an opin-ion published in the Dec. 16 Arizona Repub-lic, “I am a strong supporter of the Second Amendment and the right to bear arms — but we must take action to deal with the easy availability of assault weapons and extended magazines.

“We must take action to prevent people who are a danger to themselves and others from getting access to these weapons.”

Tech Park solar facility sold

A 6-megawatt commercial solar project built on a 38.5-acre parcel in the University of Arizona’s Science and Technology Park has been acquired by Duke Energy Renewables, based in Charlotte, N.C.

Th e project, which was started a year ago, went online this week.

Named the Gato Montes Solar Power Proj-ect, it was constructed by AstroSol Inc., a joint venture between solar panel manufacturer Astronergy Solar Inc. and solar project devel-oper Solmotion GmbH of Germany, which took out a $12.3 million loan for the project. A purchase price to Duke Energy Renewables was not announced.

Th e project used solar photovoltaic (PV) thin-fi lm, amorphous silicon technology. It is one of several technologies being tested at the UA Tech Park.

Power produced at the facility is sold to Tucson Electric Power, under a 20-year agree-ment.


Armory Park Apartments rehab targets more mature market

NEWS

By Roger YohemInside Tucson Business

It’s got “good bones.” It will cost $3 million to $4 million to renovate. It’s downtown. It should be open by the summer. It’s going to be called Th e Herbert.

“At this point, student housing is pretty well taken care of downtown with all the new projects. Th at is a great market, there’s a rally in building that caters to them. But based on our other projects, we’re seeing there is a desperate demand for product downtown for older, more mature tenants,” said developer Ron Schwabe, owner of Peach Properties.

Th is month, for approximately $3 million, a partnership venture between Peach Prop-erties and Holualoa Arizona acquired the 40 year-old Armory Park Apartments, 211 S. Fifth Ave. Under an intense six-month con-struction schedule, the partners plan to ren-ovate the property into a modern, amenity-heavy, market-rate apartment complex.

“Th e solid bones of the building are what attracted us. It is almost identical to One North Fifth with poured-in-place concrete throughout. Both buildings were done by the same architect and the same contractor just a few years apart,” said Schwabe.

In 2008, Peach Properties and Williams and Dame Development, Portland, Ore., redeveloped the former Martin Luther King Public Housing facility at 1 N. Fifth Ave. Th at complex, built in 1969, also was converted into market-rate rentals, plus new street-lev-el commercial space was added.

On six fl oors, the former King building had a total of 96 units. On eight fl oors, the Ar-mory Park structure has 144 units.

“You couldn’t aff ord to build either now, built when concrete was something like $8 a yard compared to over $100 now. Th ey’re classic concrete buildings, so solid, way over the top in structural quality,” Schwabe said. “With a building like this, this is the one chance to dress up the boxes and do the right thing with the interiors.”

Each apartment will be gutted and re-habbed with quality kitchen and bathroom fi nishes and amenities. Th e interior décor will be “mature, designed to appeal to adult tenants” and triple-pane windows installed, Schwabe explained. Th e project’s architects are Eglin-Bresler Architects, 7391 E. Tanque Verde Road, and FORS Architecture + Interi-ors, 2810 E. Fourth St.

Th e building’s central chiller/boiler sys-tem needs to be upgraded and the plumb-ing, electrical and water systems all will be addressed.

Th e contractor is BSH Builders, a com-pany that offi ces alongside Peach Properties at 44 E. Broadway. Schwabe has done other

renovations with BSH and characterized the fi rm as “an in-house collaborative contractor. Th ese types of projects have endless surpris-es and problems so when there’s a change order, they just work through it.”

Conversion of Th e Herbert will be done by local subcontractors and “we will go out of our way to use them and American-brand materials,” Schwabe emphasized. Th e name change is derived from Herbert Avenue, the property’s eastern boundary.

On the ground fl oor’s 6,000 square-feet of common area, planned renovations include a new fi tness area, entertainment room, lob-by/lounge, and WiFi system. For the entire complex, the re-developers plan to pursue some level of LEED (Leadership in Energy & Environmental Design) certifi cation, de-

pending on costs. Monthly rents are pro-jected to be about $700 for a 460 square-foot studio and about $1,000 for a 620 square-foot one-bedroom apartment. Rents will vary by fl oor, said Schwabe, “as there’s demand to be 90 feet up in an apartment with a great view.”

“Our product will be skewed to mature adults, young professionals, early retirees. We’re going the other direction, away from students,” said Schwabe. “At our One North Fifth building, the wait list to get in is about six months.”

Last August, the residents of Armory Park Apartments were moved to replacement housing just west of downtown to Sentinel Plaza, 795 W. Congress St., a new $27 mil-lion complex for low-income seniors. Th ese aff ordable-housing units were developed by a collaboration of Senior Housing Group, based in Chicago; and Evergreen Partners based in Maine.

Peach/Holualoa purchased the Armory Park parcel from Senior Housing Group. Anne Lawrence, asset manager for Holula-loa, will have administration responsibilities for newly renovated Herbert.

“Once the sale closed, we were ready to start immediately. Our building schedule is six months,” said Schwabe. “On the day we closed, we kick the ball forward.”

Contact reporter Roger Yohem at


Anne Lawrence, Asset Manager, Holualoa Companies; Ron Schwabe, Peach Properties. At left, Armory Park Apartments.

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This Week’s Good News Holiday time

Th e holidays are here. Your shopping is nearly fi nished and now is the time to slip into neutral and enjoy family and friends. Th at is until you and your accountant have to reconcile the books. But that can wait until after Jan. 1.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Downtown negotiations Th ere’s no deal yet and those involved say it

could still go either way. Negotiations are con-tinuing that would give the Dallas Police and Fire Pension System some prime developable downtown Tucson property, including part of Sun Tran’s Ronstadt Transit Center, 215 E. Con-gress St., in exchange for the 287 acres of desert land it owns in the Tucson Mountain foothills between Speedway and Anklam Road.

Th e three-way negotiations involve the City of Tucson, Pima County and the pension fund. Th e fund acquired the 287 acres in 2005 for $27 million with the expectation it would be devel-oped as a subdivision known as Painted Hills. Th e county had been eyeing it for purchase as an open space gateway to Tucson Mountain Park but could never come to terms with previ-ous owners. But after it acquired the property, the pension fund let lapse an agreement with Tucson Water, which put a halt to extending water lines outside the city limits.

Th at prompted a lawsuit from the pension fund and a settlement. Th at’s being negotiated now. Most likely the deal would involve the pen-sion fund trading the open space for the city’s downtown property and having Pima County pay the city for the property it is selling.

Local offi cals talk glowingly of the pen-sion fund as the major investor in Cityscape in downtown Phoenix that consists of a 27-story offi ce tower, a hotel and retail that would re-place some of the numerous diesel-belching Sun Tran buses clogging up downtown streets going to and from the existing transit center.

An idea is to establish a multimodal transit center on the westside serving Sun Tran, Grey-hound and possibly others that would be con-nected to downtown via Sun Link, the modern streetcar.

Ahead of San Diego Speaking of downtown, a few years ago nay-

sayers would insist that Tucson stop trying to compare its downtown to other places like San Diego. But at this moment, Tucson’s downtown is ahead of San Diego’s in one important way: Th ere are three construction cranes up in Tuc-son and only one in San Diego.


MEDIACEO Long completes succession plan; tribe to self-manage Casino del SolBy Roger YohemInside Tucson Business

Mission accomplished. As part of its long-term management succession plan, leader-ship of Sol Casinos will be transferred to a Pascua Yaqui Indian tribal member by early June.

After seven years as CEO of Pascua Yaqui Gaming Enterprises, Wendell Long will yield his executive duties to one of fi ve tribal mem-bers being considered for the top post. None of the candidates has been publicly identi-fi ed.

“Th is is the outcome of our management succession program. I was brought here in March 2006 to be the last non-tribal member CEO. We have succeeded in this goal,” said Long. “We’ve done some pretty fantastic things here and as planned, I worked myself out of a job.”

Th rough its innovative STEP (Supporting Tribal Employment Partnership) program, tribal member-employees receive training in professional development and management succession. It is a fl exible mix of training based on an individual’s interests.

STEP includes on-site workshops, on-the-job training, classes at Pima Community Col-lege, shadowing department heads, self-study and personalized coaching. Th e goal is to promote from within and have a tribal mem-ber prepared to take over a position before an opening occurs.

“I’ll be replaced by someone already work-ing here, already trained to do this. I’m confi -dent any of the fi ve tribal members can do this job. Now is the time for them to manage their own casino and resort,” Long said. “Th e tribal council was happy to have me and I liked it here.”

Th e Pascua Yaqui Tribal Council will se-lect a successor and Long will collaborate with the new executive through the transi-tion. At the latest, Long will stay until June 9.

Pascua Yaqui Gaming Enterprises owns and operates two casinos. Casino Del Sol Re-sort, Spa and Conference Center, 5655 W. Va-lencia Road, includes an outdoor amphithe-ater performance venue, and a new $100 million hotel and convention center. It also continues to operate its original Casino of the Sun, 7406 S. Camino De Oeste.

Of the approximately 300 employees hired at the hotel, opened in November 2011, 87 percent are tribal members. None had any prior hotel experience.

“We brought them on three months early for training. As a testimony to the success of STEP, the hotel already has earned the AAA Four Diamond Award rating,” said Long. Th e tribe’s overall operations employ about 1,400 people.

Since coming to Tucson, Long has been active in volunteer leadership positions and

community service. He is a member of the Tucson Conquistadores and serves on the boards of the Tucson Zoological Society, Tu Nidito, Southern Arizona Red Cross, and Tuc-son Regional Economic Opportunities. Last year, he was chairman of the board for the Tucson Metro Chamber.

“We worked very closely on a number of major initiatives, like upgrading the cham-ber’s political clout, creating new ways to serve small business, promoting improve-ments in education, economic development and how the chamber could positively impact the quality of life in Southern Arizona,” said Mike Varney, CEO and president of the cham-ber. “It was obvious from the start that Wen-dell is a man of vision who believes in possi-bility thinking.”

Long, 49, began his gaming career 30 years ago at the Playboy Hotel & Casino in Atlantic City where he also worked for Trump Organi-zation. In Connecticut, he worked at Mohe-gan Sun and Foxwoods Resort Casino. He then served as general manager at Treasure Island Casino in Minnesota prior to joining

Pascua Yaqui Gaming Enterprises.He holds degrees in business administra-

tion, fi nance and marketing, and law. He is married and a licensed commercial pilot.

Since Long has a no-compete clause in his employment contract and plans to continue his career in gaming, he most likely will leave Arizona.

“One thing for certain, I’ll stay with the skill I know best. I’d like to help out another tribe somewhere,” he said.

Indian gaming’s unique conditions and business goals appeal to Long more than those of a traditional, commercial operation. Although both have the goal of making mon-ey, tribal gaming has diff erent priorities.

“In a place like Atlantic City, all the profi ts go back to the owners,” said Long. “In tribal gaming, I like seeing the tangible results of hard work, like funding a new wellness center or a new senior citizens center or a new school.”

Contact reporter Roger Yohem at


Wendell Long

PUBLIC NOTICESSelected public records of Southern Arizona bankruptcies and liens.

FORECLOSURE NOTICES Upwardly Mobile LLC 4180 N. Swan Road 85718 Tax parcel: 109-19-0370Original Principal: $252,000.00 Benefi ciary: Commerce Bank of Arizona Auction time and date: 11:30 a.m. March 5, 2013 Trustee: Steven J. Itkin, Waterfall Economidis Caldwell Hanshaw & Villamana, 5210 E. Williams Circle, Suite 800

SEC M&I LLC Vacant residential property at the southeast corner of Irvington and Mission roads, 85746 Tax parcel: 137-29-429Original Principal: $642,000.00 Benefi ciary: Enterprise Bank & Trust, Phoenix Auction time and date: 10 a.m. March 6, 2013 Trustee: William Scott Jenkins Jr., Ryley Carlock and Applewhite, 1 N. Central Ave., Suite 1200, Phoenix

LIENSFederal tax liens Luna Negra Inc., 1928 E. 17th St. Amount owed: $5,797.97. Gateway West Realty Inc., 2151 W. Felicia Place. Amount owed: $36,162.04. Beebe Steel LLC and Vivian Utley, 275 W. Continental Road, Green Valley. Amount owed: $1,170.00. L&K Roofi ng LLC and Francisco Mariscal, 2320 E. Summit St. Amount owed: $24,280.69. Motorex Inc., 3575 E. Grant Road. Amount owed: $5,287.92. Fairfi eld Custom Woodwork Inc., 150 S. Camino Seco, Suite 109. Amount owed: $49,521.58.Solar Industries Inc., PO Box 27337, 85726. Amount owed: $593,691.53. Los Campas LLC and Leonel E. Campas, 13116 S. Highway 191, Pearce 85625. Amount owed: $44,599.47. Rio Rico Health & Wellness Center, 3225 S. 12th Ave. Amounts owed: $21,388.38 and $5,849.56.Anthony’s Heating & Cooling Inc., 10911 E. Limberlost Road. Amount owed: $15,816.36. K&K Insurance Agency LLC and Carlos M. Arias, 536 W. Utah St. Amounts owed: $16,918.75 and $2,123.41. KGVY LLC, PO Box 767, Green Valley 85622. Amount owed: $8,407.53. Law Offi ces Lisa M. Kimmel PLC and Lisa M. Maxtutis, PO Box 89820, 85752. Amount owed: $16,636.29. AGG Haulers LLC, 7681 N. Calle Sin Controversia. Amount owed: $5,832.00. Desert Horticulture and Andrew J. Bessey, 2939 E. Cushman Drive. Amount owed: $4,458.45. JRD Masonry Inc., 1700 W. Placita Caracol, Oro Valley. Amount owed: $17,114.78. Southern Arizona Rain Gutters Inc., 8987 E. Tanque Verde Road 309-29. Amount owed: $7,737.61.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)Arizona Truck Outfi tters and ATO Tucson LLC, 625 N. Stone Ave. Amount owed: $231,795.25. Chopstix Asian Diner and ML Brothers LLC, PO Box 10392, Phoenix 85064. Amount owed: $15,371.37. My Little Angels Daycare Centers Inc., 1960 S. Park Ave. Amount owed: $2,011.44. Better Bodies Wellness LLC, 7285 E. Tanque Verde Road #135. Amount owed: $3,123.64.Scissorworks Pet Styling LLC, 660 W. Camino Casa Verde 3, Green Valley. Amount owed: $1,121.32. Quality Maintenance and Cleaning Service LLC, 6242 S. Logger Drive. Amount owed: $2,447.46.

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

Brewer Restoration LLC, 3232 W. Philadelphia Lane, against Choi W.J. LLC, 115 S. Vista Grande, Anaheim, Calif. Property: 11133 N. La Canada Drive, Oro Valley. Amount owed: $28,620.73.



SALES JUDO

Let’s review 2012 revenues and sales rep performances It’s going to be all over but the shouting

in just another week. For those of us with calendar fi scal

years, we’ll soon begin the process of fi guring out what our fi nal balance sheets and income and cash fl ow statements have to tell us. And since this is a sales column, it’s only proper to focus on the “top lines” of our income statements.

How much of what did we sell? What did it cost to deliver those products and services?

And just how much did they throw off in variable contribution to cover our overhead

and fi xed costs and to produce a pre-tax profi t?

Who sold the most? Who sold the least? Who goes and who stays?

William Cron’s and Th omas DeCarlo’s classic 499-page text,

“Dalrymple’s Sales Management,” has some great ideas in the last chapter, titled

“Evaluating Performance.” While you can always buy the book

(prices range from $5 to $200 from online vendors) and read the chapter, there’s one particularly useful technique called the Performance Matrix that I’ll review and build upon today.

Th e matrix has two axes. A vertical axis on the left shows the amount of sales achieved. A horizontal axis at the bottom shows the variable contribution margin (revenues less cost of goods sold and sales commissions).

Th e matrix is divided into four quad-rants. In the upper right quadrant, 11 “star” salespeople not only generated the highest amount of sales ($2.9 million per sales representative) but the highest level of variable contribution on those sales (37.4 percent).

Each rep made an average of only 888 sales calls, the lowest of all four quadrants, for the highest average sale per call, $3,300. So, while the stars’ average sales of $2.91 were below those of the compromisers, at $3.17, they appeared to have the highest productivity per call and the highest contribution margin.

On the other hand, the 11 “laggards” in the lower left quadrant of the matrix were the poorest performers with only $1.8 million of sales per sales rep and $1,900 per sales call. Th eir contribution margin of 35.8 percent is at the same level as the 18 “compromisers” in the quadrant above it.

While the matrix provides some excellent insights, the performance graph based on the same data off ers a visual comparison that highlights several important distinctions.

All four groups have contribution margins that fall quite close to an average of 36.5 percent. But the spread in average revenues between the top and bottom two groups is pronounced!

It’s clear the “slowpokes” and “laggards,” which account for roughly half of the sales force, need special attention, and that’s where another version of this graph be especially useful.

SAM WILLIAMS

SALES

SALES REP PERFORMANCE MATRIXSales

(mil.)

Compromisers Stars

$3.87 Average sales $3.17M Average sales $2.91M

$3.66 Avg. contribution $ $1.13M Avg. contribution $ $1.09M

$3.44 Avg. contribution % 35.8% Avg. contribution % 37.4%

$3.23 Number of calls 1,122 Number of calls 888

$3.02 Avg. sales per call $2.8K Avg. sales per call $3.3K

$2.80 Number of reps 18 Number of reps 11

Laggards Slowpokes

$2.59 Average sales $1.78M Average sales $2.03M

$2.38 Avg. contribution $ $640K Avg. contribution $ $750K

$2.16 Avg. contribution % 35.8% Avg. contribution % $37.1%

$1.95 Number of calls 958 Number of calls 921

$1.74 Avg. sales per call $1.9K Avg. sales per call $2.2K

$1.53 Number of reps 11 Number of reps 16

Variable contribution margin percent

34.8% 35.1% 36.0% 36.6% 37.2% 37.8% 38.7%

Th is graph compares the quarterly sales performance and variable contribution of two new salespeople, Chris and Kim,

throughout 2012. In the fi rst quarter, Kim’s revenues and

contributions lagged behind those of Chris. Th is trend continued through the second, third and fourth quarters.

Since both worked in the same territory, we can rule out the possibility that the variations in their performance were caused by diff erent market conditions. Th eir manager coached both about how to increase their prospecting activities and to sell products with full margins.

By the end of the year, Chris had produced $35,000 more contribution on $30,000 more revenues than Kim. Chris’ performance, while average at fi rst, continually improved.

On the other hand Kim’s performance, also initially average, showed only modest improvement. Th eir manager will have to decide whether to replace or continue to coach Kim.

Some sales managers display similar graphs on cork boards containing the quarterly results of each of the members of their eight-to-10 person sales teams.

When salespeople compare their perfor-mance with those of their peers, they are often strongly motivated to improve but may not know quite what to do.

In my next column on Jan. 4, I’ll connect the dots from these graphs with another straightforward visual aid that will help sales people and managers identify just what to focus on to improve their results.

Contact Sam Williams, president of the business-to-business sales consultancy fi rm New View Group, at [email protected] or (520) 390-0568. Sales Judo appears the fi rst and third weeks of each month in Inside Tucson Business.



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PROFILELong history amplifi es Chicago Music Store’s reputationBy Christy KruegerInside Tucson Business

Electronic sound equipment giving way to computers, cuts in school music programs and modern streetcar construc-tion on Congress Street have all presented challenges for Chicago Music Store. But these roadblocks have also created opportunities for the 93-year-old down-town music retailer.

Clara Levkowitz moved her family to Tucson from Chicago in 1918. Th e follow-ing year, she opened a general store in downtown, selling everything from animal feed and ammunition to automotive parts.

During the 1950s and 1960s, the shop began concentrating solely on music. Two of the seven Levkowitz children, Joe and Phil, remained in the business until 2004 when both died within two weeks of each other.

“I guess they wanted to be together,” said Joe’s son, Mark Levkowitz, who worked at the store since he was a child. After the deaths of his father and uncle, he bought out the other family members and took over the business.

Recognizing the need to update the store’s business model, Levkowitz hired David Fregonese, former owner of L.A. Music and Guitars Etc., to help guide the company into the future.

“Mark approached me to join him and reestablish a new identity,” said Fregonese, now chief executive offi cer of Chicago Music Store. “I was brought in to help redirect the company after Joe and Phil passed away. Th e industry had changed over the previous 15 to 20 years and the store hadn’t changed much in the previous 35 years. We were behind.”

Strategies Fregonese implemented include this year’s relocation of Chicago Music Store’s east-side location to a more visible site at 5646 E. Speedway, from Broadway and Kolb Road where it had been since 2006. Th e new location was previously the home of Guitars Etc.

Fregonese also was able to obtain a

grant from the City of Tucson through Downtown Tucson Partnership to restore the Congress Street store’s facade. Th e building had housed a J.C. Penney store for decades. After three downtown moves, the Chicago Music Store has remained in the building at 130 E. Congress St., since 1967.

“I got a grant that allowed us to refur-bish the outside of the building. Th e entire exterior is being restored to its quasi-origi-nal state. We’re exposing historical aspects, including the transom windows. Th is is of historical signifi cance.” Fregonese expects the project to be completed this month.

Another move the CEO is making to bring the business into the 21st century is the use of online marketing and updating the website.

“We’re working with a company to help establish a better reach through the social media market that will be our face in 2013,” he said.

One of the most unique features of the business, according to Fregonese, has been

BIZ FACTS

Chicago Music Store www.chicagomusicstore.com130 E. Congress Street(520) 622-3341 5646 E. Speedway(520) 886-1516

its inventory of vintage instruments.

“Joe and Phil wanted to make sure they didn’t run out of anything, so they were always buying inventory. Th ey’d fi nd golden gems. People could fi nd things that were discon-tinued,” he said.

Not long ago, a man came into the shop with a fl ute and clarinet dating back to approximately 1860 that had been stored in his mother’s closet.

Such one-of-a-kind fi nds attract musicians from across the country, including contemporary legends Sheryl Crow and Jackson Browne.

“Acts that play downtown almost always come through Chicago Store. Th e store has a reputation,” Fregonese said. Th at name recognition also attracted the fi lming of a scene from “Alice Doesn’t Live Here Anymore” in 1974 and this year’s feature in Country Living magazine’s Portrait of America.

Some of Chicago Music Store’s various retail elements have changed over the years. Today it sells, buys, rents and repairs instruments and off ers sheet music, instru-ment cases and sound equipment for sale. Th e 6,000-square-foot Speedway store also provides lessons in its seven teaching studios.

“We were more diversifi ed in the ‘60s and ‘70s,” Fregonese said. “We sold records and tapes. We had large P.A. systems; instruments of all types were purchased widely. Th ere’s less demand now for a lot of electronics. Th ey’ve been replaced by computers.”

Band rentals have been an important factor in the store’s longevity.

“Students become older buyers of ours. We have generations of customers,” Fregonese said. So it was of some concern when funding for school arts programs was cut. Business dropped for Chicago Music Store.

“We’re a premier provider to schools. Five years ago schools cut music programs, but they were recently

re-introduced,” due in part to pressure applied by parents, Fregonese noted. And while the school segment, repairs and lessons are currently strong, he admitted the recession and more recently the modern streetcar construction has hurt general retail sales.

Levkowitz however, is confi dent the streetcar payoff will be signifi cant.

“It will bring a huge amount of people on a regular basis and they won’t have to hassle with parking or one-way streets. For us it’s huge – my understanding is there will be a stop right in front of our store,” he said.

And there’s always the shop’s reputation to lean on.

“Th e biggest advantage we have is history and longevity and the band rental business,” Fregonese stated. “You become a household name when you’ve been around for so long.”

Original location in 1919, downtown.


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MEDIA‘Sunny’ Jim back in the saddle running Journal stationsBy David Hatfi eldInside Tucson Business

Jim Arnold’s media career has spanned both TV and radio. Now he’s doing both at the same time. On Monday, he became vice president and general manager over the Journal Broadcast Group’s two TV stations and four radio stations in Tucson.

“I just found that I had too much energy and too much time to squander it,” he said.

He’s especially excited for the opportu-nity running a quality group of stations in what is basically his hometown market.Many of the Journal employees are peers or friends he has known for years.

A graduate of the University of Arizona, Arnold was known as “Sunny” Jim when he was a top-rated morning radio personality on KCUB for 10 years before leaving Tucson in 1978 to climb the managerial ranks of media stations. After stops in El Paso then Lubbock, Texas, where he jumped into TV, then on to Madison, Wis.; Rockford, Ill.; and Amarillo, Texas, Arnold returned to Tucson in 2000 to take the helm of CBS-affi liate KOLD 13, owned by Raycom Media.

Under Arnold, KOLD moved up from be-ing a ratings cellar dweller and grew reve-nue, according to estimates by the market research fi rm BIA/Kelsey.

Arnold, 65, left KOLD in March 2010 say-ing at the time that family issues were con-suming more of his time. His son Jeff had lived with a brain tumor nearly all of his life, and was going in and out of chemo therapy. Jeff Arnold died May 9 this year. He was 35.

Arnold replaces Julie Brinks, who left early in November after fi ve years and one month on the job.

Journal Broadcast Group is headquar-tered in Milwaukee, Wis. Its Tucson opera-tions consist of two TV stations, ABC-affi li-ate KGUN 9 and CW-affi liate KWBA 58, and four radio stations, Mix-FM KMXZ 94.9-FM, the Truth KQTH 104.1-FM, the Groove KTGV 106.3-FM and ESPN Radio Tucson KFFN 1490-AM/104.9-FM.

Besides his media work, Arnold is in-volved with the Pima County Sports and Tourism Authority, and the Boys and Girls Clubs of Tucson.

Azteca goes digitalKUDF 14, Tucson’s Azteca America sta-

tion, is now broadcasting in digital, a big step toward its plans to operate a full-service Tucson-based Spanish language TV station in high defi nition.

Rodolfo Velez Gonzalez, president of owner LM Media Group Inc., said he ex-pects to be off ering high-defi nition pro-gramming within a few weeks.

Th e station is also in the process of build-ing out new TV offi ces and studios at 1201 E.

Broadway. Once that’s competed, the plan is for KUDF to begin broadcasting locally originated programming, including news-casts.

Among the station’s new hires is Patty Ruiz, who has a long career in media sales in Tucson, including work in radio, newspa-pers and other publications.

Founded in 2001, Azteca America is owned by Mexico’s TV Azteca. Although Az-teca America is smaller on a national scale than its two U.S. rivals, Univision and Tele-mundo, the Tucson affi liates of those net-works are mostly based outside of Tucson. Most of Univision’s programming is pro-duced in Phoenix and Telemundo’s pro-gramming originates in Dallas.

LM Media Group, which acquired KUDF in March, is a Tucson-based company that also operates digital billboards in Mexico near border crossings into the U.S. and in Hermosillo, Sonora.

Ratings gorillaTh e nation’s biggest TV ratings company,

Nielsen, said Tuesday it is acquiring the na-tion’s biggest radio ratings company, Arbi-tron, in a deal valued at $1.26 billion. Th e deal, which was approved by the two com-pany’s boards, needs regulatory approval and an antitrust review. If it’s approved, all broadcasters — TV and radio — can grum-ble about Nielsen ratings.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

Jim Arnold


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TECHNICALLY SPEAKING

Your email is gone, smartphone is dead and you lost $12,345

Suppose you get up one morning and discover all the photos and music you stored online are gone and everyone in your email address book will be receiving a series of racist and homophobic emails from you, along with an email bashing small business owners as greedy scumbags.

It gets worse. Your smartphone is dead. Your email account and archives are gone. And $12,345.55 has been stolen from your business banking accounts. Last night, you got hacked.

According to Mat Honan, in “Hacked,” in Wired Dec. 2, a competent hacker can probably get into your accounts in less than an hour. If you own a small business, you are more likely to be a target.

Here is a short explanation of how people get hacked. Th e fi rst key weakness is the username – most people use their email address. Th e second weakness is the use of easy, predictable passwords including the word “password!” Really. A third weakness – hackers have access to tens or even hundreds of millions of accounts because major corporations have been hacked and their lists of usernames and passwords have been dumped on the Internet.

Suppose you haven’t already been exposed through a major provider security breach. Hackers still have powerful tools to ruin your life. One, visit the wrong website and malware (software that sends your usernames and passwords to a hacker) may be installed on your computer without your knowing it. Two, email phishing schemes may con you into entering your username and password on a bogus website. Th ree, guessing the right security answers may enable a hacker to reset passwords. Four, a “brute force” attack may work against even a moderately strong password. Five, hackers succeed with other approaches such as a call to or a chat with tech support to report “a forgotten password” and have it reset.

A hacker’s highest priority may be your email account. Access to your email account provides buckets of info about you plus it’s a quick way to reset passwords and access other accounts. If you’re using IMAP (your mail’s in the cloud), then the hacker can search through your email using phrases such as “bank account,” and “password” to fi nd accounts, usernames and passwords.

Concerned yet? You should be. Here are steps you can take to protect yourself:

1. Don’t click on email links and then enter your username/password information.

2. Do not use the same username and password for every account! Use separate usernames and passwords for each

account.3. When you

can, choose a username that is not your email address. Th at makes it harder to guess.

4. Use a random series of letters and numbers for each password. As of

today, a brute force attack will fail against a strong, 16-character password.

5. Pay special attention to usernames and passwords for key accounts such as email, banking and online stores. Th ese key accounts can really cost you if hacked; others may cause you major embarrass-ment or inconvenience but not cash.

6. Do not provide typical answers to security questions. Hackers can probably fi nd, for example, your mother’s maiden name on the Internet, so make up nonsen-sical answers to common security ques-tions. For example, if the question is, “What elementary school did you attend?” your answer could be “My Big Fat Aunt Winona” (apologies to Aunt Winonas everywhere).

7. Do not make a list of all your user-names and passwords and save them on your PC and or your smartphone. If you do and either gets hacked or stolen, you’re screwed. Instead, print out a username and password list without saving the fi le.

8. Don’t share your usernames/passwords via email.

Finally, if you’ve been paying attention, you may be thinking (correctly), “Great, but if my email does get hacked somehow, the hacker can just reset all those fancy usernames and passwords I created.”

True. Th erefore, (ideally) take step nine: Create a separate, private email address you use only to manage your online accounts. Do not share that email address with anyone.

If you follow these steps, you’ll be better protected than 99 percent of Internet users. Better to be in the 1 percent who are hardest to hack than among the 99 percent. Among the 99 pecent, some are going to wake up tomorrow with a dead or missing smart-phone and a big hole in their bank account. You don’t have to risk being one of them.

Contact Dave Tedlock, president of the website development and marketing company NetOutcomes, at [email protected] or (520) 325-6900, ext. 157. His Technically Speaking column appears regularly the third week of each month in Inside Tucson Business.

DAVE TEDLOCK

GOOD BUSINESS


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much success in 2013!


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By Patrick McNamaraInside Tucson Business

In the military and police worlds, achieving situational awareness is a key to a successful mission.

Strongwatch Corporation, a young Tucson-based technology company, designs and builds surveillance systems that provide situational awareness for law enforcement and military forces.

Th e company calls the system “Freedom on-the-Move,” and it’s designed to give police and military covert and mobile surveillance capabilities in an easy-to-use modular system.

“A lot of what we do is being a very good incorporator of technologies,” said William “Drew” Dodds, director of sales for Strongwatch.

Much of Freedom-on-the-Move is made from components acquired from various manufacturers, including parts like optical sensors, cameras, laser range fi nders, gyro stabilizers and a mast that sends the

Strongwatch surveillance system gives police, military ‘situational awareness’

Pima County Sheriff R. P. Krygier operates the system with ease.

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NEXT GENERATION

BIZ FACTS

StrongWatch Corporation5255 E. Williams Circle, Suite 1030www.strongwatch.com(520) 298-1600

mailbox-sized sensor head that houses all that acquired technology 25 feet in the air.

Th e system can be installed in the bed of a pickup truck or rear of other heavy-duty vehicles. When fully deployed, the mast looks like that on a television news truck.

Another borrowed technology Strong-watch employs makes controlling the system as simple as playing a video game. Th e company integrated Xbox home gaming system controllers to operate the system, which Dodds said sets the Free-dom-on-the-Move system apart from other similar mobile surveillance.

In addition to the familiarity of the Xbox controller, it provides a low-cost option for

replacements. “If it breaks,

you can send someone to Walmart and get one for $60,” Dodds said. Repairs on other surveillance systems with

proprietary interfaces can cost $1,000 and more to replace and take weeks to get done, he said.

Dodds also said he can train a person to use the system in about half a day, as opposed to other surveillance systems that have largely proprietary operating systems and require months of specialized training.

“You practically need a master’s degree to operate some of the others,” he said.

Th at simplicity and ease of use has attracted buyers like the Pima County Sheriff ’s Department, which recently purchased a system from Strongwatch.

“Th is really is a force multiplier,” said Lt. John Stuckey of the Pima County Sheriff ’s Department.

Th e sheriff ’s department bought the system from Stongwatch using $250,000 in federal grant money.

Th e department plans to use the system, at least initially, for its Border Crime Unit, which operates along the U.S.-Mexico border region and areas of known drug and human smuggling.

“Basically, anywhere where we need covert surveillance,” said Sgt. Robert Krygier, who supervises the Border Crime Unit.

For that reason, sheriff ’s offi cials did not want the vehicle that bears the Freedom-on-the-Move systems identifi ed. Krygier said drug smugglers often work with spotters hiding in the deserts who watch law enforcement movements and report back to the smugglers.

Th e mobile capabilities also attracted


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NEXT GENERATIONthe sheriff ’s department.

Similar systems can take several minutes to set up and equally long to tear down.

But the thing that most sets the Strong-watch system apart from others, Dodds said, is that it can continue to conduct surveillance while on the move.

With the mast dropped to its lowest position, the vehicle can continue to watch suspected drug smugglers or illegal border crossers.

In addition, the system can be deployed or taken down in a matter of minutes, Dodds said.

But it’s not just law enforcement, military or border patrol that have uses for the system, Dodds said.

“Th is thing has applications for fi re, search and rescue and covert narcotics surveillance,” he said.

In search and rescue, the system’s infrared capabilities could make locating lost or injured people easier for rescue crews. Th e same holds in a structure fi re situation where a person could be injured or unconscious inside a smoky building.

It takes one or two people to operate the system, which is controlled from the cab of the vehicle with the Xbox controller and a computer monitor.

Using a secure Internet connection, personnel in off -site areas with various mobile devices can view what the Free-

dom-on-the-Move system sees. Operations also can be viewed from remote headquar-ters or command posts.

Dodds wouldn’t confi rm how many of the systems the company had sold, but said it was more than 25 and fewer than 100.

“We actually had to turn down an opportunity with a buyer in Mexico because we couldn’t verify who it was going to,” he said.

As an added measure of security, the system requires bi-weekly updates that Strongwatch sends via email, similar to software updates on a PC.

Mast-mounted sensor can survey from 25 feet up.

If the user doesn’t logon and complete the update, Strongwatch disables the system.

“Th en you have a very expensive paperweight,” Dodds said.

Next Generation is a monthly feature

of Inside Tucson Business profi ling Southern

Arizonans on the cutting edge of developing

their ideas. If you’ve got an idea or someone

you think should be profi led, contact reporter

Patrick McNamara at pmcnamara@azbiz.

com or (520) 295-4259.The Strongpoint system also features surveil-lance on the move.

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Ballet Tucson’s production of the holiday classic “Th e Nutcracker” takes stage at Centennial Hall, 1020 E. University Blvd. on the University of Arizona campus, for fi ve performances tonight through Sunday. Th e timeless ballet is fi lled with whimsical costumes, creative sets and giant rats fi ghting toy soldiers. Defi nitely something for the whole family.

Performances are at 7:30 p.m. tonight, 2 and 7:30 p.m. Saturday and 1 and 5 p.m. Sunday. Tickets are priced from $28 to $56 with discounts for students, children, seniors and groups of 10 or more. Buy them through Centennial Hall’s box offi ce at www.uapresents.org or (520) 621-3341.

On the subject of holiday traditions, the annual Winterhaven Festival of Lights is open from 6-10 p.m. through Dec. 29. Bring a non-perishable can of food for the Commu-nity Food Bank when you go. Th e two remaining drive-through nights are Dec. 28 and 29, otherwise it’s walk-through. Trolley and hay wagon rides are available. Details are on the festival’s website www.winterhaven-festival.org/haywagon_rides.htm .

Th e Winterhaven neighborhood is north of Fort Lowell Road and south of Prince Road between Tucson Boulevard and Country Club Road.

Holiday family funTh e Mini-Time Machine Museum of

Miniatures, 4455 E. Camp Lowell Drive, presents its annual “Wee Winter Wonder-land” featuring holiday décor, musical performances and children’s craft projects. Events continue from 9 a.m. to 4 p.m. Wednesdays through Saturdays and noon to 4 p.m. Sundays through Jan. 6.

ArtA new exhibit at the Museum of Con-

temporary Art (MOCA), 265 S. Church Ave., titled “Capitalist Masterpieces,” showcases

large-scale paintings by Peter Young that feature a range of experiments in abstract painting. Young’s work is in permanent collections of institutions including as New York’s Museum of Modern Art, the Whitney and the Guggenheim as well as the Hirshhorn Museum in Washing-ton, D.C. Young has lived and worked in Bisbee since 1972. MOCA’s hours are from noon to 5 p.m. weekdays.

FilmA pair of high-profi le fi lms open today,

sneaking in before the traditional Christ-mas Day deluge of Oscar-bait movies. One is the comedy “Th is is 40” from director Judd Apatow. It stars Leslie Mann and Paul Rudd as a young family who approach their eponymous birthdays with dread, facing their accomplishments and unful-fi lled dreams. Th e other is the new Tom Cruise vehicle “Jack Reacher,” based on the Lee Child series of books about a retired military loner who helps those in need when there are few other options.

Th e Loft Cinema, 3233 E. Speedway, opens the excellent German fi lm “Barbara” which takes place in East Germany before the fall of the wall. Th e movie is Germany’s entry into this year’s Academy Awards competition and features an edgy atmosphere of dread.

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

ARTS & CULTURE

Th ree Tucson traditions to take in this holiday season

OUT OF THE OFFICEON THE MENU

From Sonoran dogs to huevos ranche-ros, dishes made by local chefs have put Tucson on the national foodie map. Beyond the fare for which the region is known however, there are exotic things happening on Tucson menus.

When Tucson chef Jonathan Landeen purchased the Cork and Cleaver Restaurant, 6320 E. Tanque Verde Road, in 1994, one item on the menu he knew he had to keep when he re-opened as Jonathan’s Cork was buff alo. Adventurous eaters found it to be a delicious departure from the standard fare of the day.

Th e exotic bison fi let was a popular dish. Nearly 20 years later buff alo occupies the same space on Jonathan’s Cork menu, which now also features everything from lamb chops to lobster tails.

Landeen says the number of coura-geously curious patrons has grown and his menu is widely known for regular rotations of bore, venison, antelope and ostrich. While options for exotic meats are virtually limitless, Landeen assumes a decidedly conservative posture.

“We’re not exotic for the sake of being exotic,” he affi rmed. “If it’s not tender and fl avorful, we won’t serve it.”

When it’s available, ostrich is currently his top-selling exotic item, and much to the surprise of patrons, Landeen suggests a medium rare preparation for the bird.

And when asked the obvious question, he responds, “No, it doesn’t taste like chicken!”

Closer to the University of Arizona campus is Boca Tacos y Tequila, 828 E. Speedway, a small taqueria with a large menu that’s as exotic as its owner and chef,

Maria Mazon. Mazon grew up in Sonora, being taught from an early age “what a taco is supposed to be.”

Every time she sees tacos on a menu with, gasp, lettuce and sour cream, she renews her pledge to “change the world, one taco at a time.”

While she may not have offi cially changed the world yet, she got the world’s attention last year when she sold her fi rst lion taco. Activists and allies alike lined up at Boca to see what the roar was about.

A year later, Mazon remains committed to culinary exoticism. She features a diff erent exotic

taco on her menu every Wednesday. She has served up eel, camel, turtle, jellyfi sh and kangaroo tacos.

Th e kangaroo is always a guest favorite, with “a mild fl avor similar to ground beef, and a distinct fi nish of game that lingers at the end,” she says.

When asked what tequila she recom-mends pairing with the kangaroo, Mazon didn’t hesitate. “Th e Penasco Anejo, of course, the oak of the agave works very well with the Kangaroo’s subtle gaminess.”

After visiting with Landeen and Mazon, I may have to expand my own exotic palette.

Anyone else game?

Contact Matt Russell, whose day job is

CEO of Russell Public Communications, at

[email protected]. Russell is also

the host of “On the Menu Live” that airs 4-5

p.m. Saturdays on KNST 97.1-FM/790-AM.

Exotic eats: Where the buff aloroam and the kangaroo hop

MATT RUSSELLHERB STRATFORD


PEOPLE IN ACTION

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

{YOUR NAME HERE}tax and investment advisory fi rm of Raskob Kambourian Financial Advisors (RK). Prior to joining RK, Needham owned a tax and accounting practice in Sun City, Ariz. Prior to that she had a practice in Colorado. She now serves on the board of directors of the Southern Arizona Chapter of Enrolled Agents.

ELECTIONS

The Arizona Manufacturers Council

has elected Patrick J. “P.J.” Gruetzmacher, president and CEO of LAI International, Inc., as a director of the board for the organization. The AMC, which joined forces

RETIREMENTS

Gordon A. Ewy, MD, a founding faculty member of the University of Arizona College of Medicine – Tucson, who has served as director of the UA Sarver Heart Center since 1991, has announced his plan to retire from the University, effective June 30, 2013. Ewy is noted internationally for his pioneering work in resuscitation research. The Sarver Heart Center Resuscitation Research Group found that compression-only CPR is more effective in the case of sudden primary cardiac arrest than “mouth-to-mouth” breathing, which had been part of “Standards and Guidelines” for 40 years with no change in survival rates. Ewy was recruited to the UA College of Medicine’s

newly established Section of Cardiology in 1969 by founding chief of cardiology, Dr. Frank Marcus. He served as chief of cardiology from 1982 to 2010 and as director of the UA College of Medicine’s Cardiovascular Fellowship Training Program from 1982 to 2009, a program that has graduated more than 120 cardiologists.

NEW HIRES

Enrolled Agent Fran Needham has joined the

in 2007 with Arizona Chamber of Commerce and Industry, promotes a positive business climate for manufacturing and supports a strong industrial manufacturing base. It

works to provide a globally competitive environment for the manufacturing sector of the economy and promotes innovation and investments in research and development.

AWARDS

Michael Quinn, vice president of industry and community relations for Caliber Collision, was recently inducted into Collision Industry’s Hall of Eagles. Quinn, a Tucson

FRAN NEEDHAM PAT GRUETZMACHER MICHAEL QUINN LOIS LOESCHER

resident, was selected for this “hall of fame” honor, considered the most prestigious in the industry, because of his career achievements that have benefi tted the collision repair industry and the community. Quinn was the only inductee this year to receive the award, annually selected by majority vote of past Hall of Eagles inductees.

Lois J. Loescher, Ph.D., R.N., FAAN, has been inducted as a Fellow

in the American Academy of Nursing (AAN). Loescher has spent her career conducting cancer-prevention research and program development, particularly for skin cancer, the most common cancer diagnosed in the United States. As an associate professor at the University of Arizona College of Nursing, founding member of the University of Arizona Cancer Center Skin Cancer Institute, and founding member of the Pan-Pacifi c Skin Cancer Consortium, based in Arizona and Queensland, Australia, Loescher has made a signifi cant contribution to skin cancer prevention and risk reduction.

GORDON A. EWY

GET ON THE LISTNext up: Accounting fi rms, tax preparers

Th e 2013 Book of Lists will be published January 25. Now it’s time to start gathering data for the 2014 edition.

For January, regular weekly editions of In-side Tucson Business will publish lists of busi-nesses and organizations in these categories:

• Jan. 4: Accounting fi rms, Tax preparers• Jan. 11: Economic development organi-

zatons • Jan. 18: Advertising agencies, Public re-

lations fi rms, Graphic design fi rms • Feb. 1: Public school districts, Private el-

ementary schools, Private secondary schools, Charter schools

• Feb. 8: Colleges and universities, Special-ty and training schools, Child care providers

If your business fi ts one of these catego-ries, update your profi le now. Go to www.In-sideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profi le by following the directions.

Th e Book of Lists is a year-round reference for thousands of businesses and individuals. Th ere is still a short period of time to place ad-vertisements in the 2013 Book of Lists to be published in January. Call (520) 294-1200.

MANUFACTURING Raytheon lands two missile contracts

Raytheon Missile Systems received a couple of military contracts.

One is a $254.6 million order for 252 Tomahawk missiles from the U.S. Navy. Th e work will be done at multiple Raytheon lo-cations in the U.S. but the biggest share will take place in Tucson.

Th e company will build 132 missiles for use on a vertical launch system located onboard surface ships and 120 missiles for use on a cap-sule launch system located on submarines.

Work is scheduled to take place through August 2015 and the funds to pay for it carry on beyond the government’s current fi scal year.

Th e other contract is a $108 million addi-tion to produce a version of its standard mis-sile for the United States and foreign allies.

Th is contract is in addition to one Ray-theon received earlier in the year and brings the total to more than $200 million.

Th e Standard Missile 2 is a surface-to-air weapon that is used in the U.S. Navy and other nation’s defense systems. Th e Navy has committed to supporting the missile through 2035, and the company will off er support for buyers, said Michael Campisi, the company’s senior director for Standard Missile 2 production.

TELESERVICES Casa Grande call center is shut down

A call center in Casa Grande was abrupt-ly shut down and about 150 employees were put out of work on December 12.

Opinionology, formerly Western Wats, had operated the center gathering opinion data and market research since 2006.

Western Wats had been purchased last year by Survey Sampling International LLC.

BRIEFSOffi cials with Opinonology declined to

comment on the reasons for the closure.

RETAILHistoric El Con Mallsign to be re-installed

Th e distinctive El Con Mall monument sign that was taken down in 1999 has been designated a historic landmark and will be re-installed at 5 p.m. Saturday (Dec. 22).

Featuring a conquistador’s swords, the sign marked the shopping center’s entry off East Broadway from 1962 to 1999. It was removed to make space for a free-standing pad for Krispy Kreme, since replaced by Chick-fi l-A.

Jude Cook, of Cook Signs, 134 S. Tucson Blvd., has refurbished the sign to its original state. It will be re-installed and lighted to commemorate the mall’s 50th anniversary.

Tucson Mayor Jonathan Rothchild and councilman Steve Kozachik will offi ciate the re-lighting, which will be followed by perfor-mances by the Tucson Boys and Girls cho-ruses. From 6 p.m. to 9 p.m., caroling will con-tinue inside the mall with free hot chocolate and cookies refreshments.

Hobby Lobby says Tucsonstore will open by April

Arts and crafts retailer Hobby Lobby has fi nalized plans to open its fi rst Tucson store by April. Renovation construction is under-way for the store at the northeast corner of East Broadway and Craycroft Road where it will be next door to SteinMart, which opened this month.

Once open, Hobby Lobby offi cials say

they expect to hire 35 to 50 workers. Th e hourly pay levels will be $13 for full-time employees and $9 for part-time workers. Th is is Hobby Lobby’s 13th store in Arizona.

“Adding new jobs and revitalizing an empty facility enables us to become an in-tegral part of the community while sharing in the growth of both the city and the state,” said John Schumacher, Hobby Lobby’s as-sistant vice president of advertising.

Hobby Lobby, headquartered in Okla-homa City, is privately held with over 520 stores nationally.

SPORTS/RECREATION Former UA Coach Tomeyto lead college all-stars

Dick Tomey, the winningest football coach in University of Arizona history, will serve as a head coach for the Jan. 11 Casino Del Sol College All-Star Game at Kino Stadium.

Tomey was the head coach at the UA from 1987 to 2000. He led the Wildcats to a 12-1 record in 1998 and a fourth-place ranking in both major polls, the highest end-of-season rank in school history. He also held head coaching positions at the University of Hawaii and San Jose State. Cur-rently, he lives in Hawaii and is special teams coach at the University of Hawaii at Manoa.

Tomey’s counterpart will be Houston Nutt, one of the game’s head coaches in Jan-uary this year. Nutt’s head coaching posts have included Murray State, Boise State, Ar-kansas and Ole Miss.

Th e all-star game will be played at 7 p.m. Jan. 11 at Kino Stadium, 2500 E. Ajo Way. Tickets are available through the Tucson Padres ticket offi ce.


FINANCEYOUR MONEY

5 new taxes that take eff ect Jan. 1 to pay for Obamacare

Like them or not, here are fi ve taxes that will go into eff ect Jan. 1 because of the Aff ordable Care Act, or Obamacare. Whether you’re for or against the act, you should know about the most important tax increases coming in less than two weeks as a result of this legislation.

1. Surtax on investment income — a $123 billion tax increase. Th is is a new 3.8 percent surtax of investment income earned in households making at least $250,000, or $200,000 for a single fi ler. Th is applies to many real estate transactions as well as the sales of investments, like stocks, bonds, mutual funds, and the like. If you’re not sure whether it will apply in your particular circumstance, you’re not alone. Tax professionals are also waiting to hear through rulings from the IRS as to how to apply this complicated new tax.

2. Th e medical device tax — a $20 billion tax increase. Medical device manufacturers have 409,000 employees in 12,000 plants across the country. Th e Aff ordable Care Act imposes a new 2.3 percent excise tax on gross sales, even if a company doesn’t earn a profi t in a given year. In addition to killing small business jobs and impacting research and develop-ment budgets, this will increase the cost of healthcare by making everything from pacemakers to prosthetics more expensive.

3. Th e “haircut” for medical itemized deductions — a $15.2 billion increase. Right now, those Americans facing high medical expenses are allowed a deduction to the extent that those expenses exceed 7.5 percent of adjusted gross income. Th is “haircut” (tax increase) imposes a thresh-old of 10 percent of adjusted gross income. Th e limiting of this deduction mostly harms near-retirees and those with modest incomes with high medical bills, by widening the net of taxable income on the sickest Americans.

4. Th e “Special Needs Kids” tax — a $13 billion tax increase. Th e 30 million to 35 million Americans who use a Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs will face a new government cap of $2,500 (currently there is no federal limit on the accounts, although employers are allowed to set a cap).

Th e one group of FSA owners for whom this cap is particularly cruel are parents of the millions of special needs kids who use FSAs to pay for their education needs. Tuition rates for these schools are usually expensive. In Washington, D.C., for example, the National Child Research Center reports tuition rates for these schools can easily exceed $14,000 a year.

Under current tax rules, FSA money can be used to pay for this type of special needs education. Th e Aff ordable Care Act tax provision will limit the options available for these families.

5. Medicare payroll tax hike — a $86.8 billion tax increase. Th e current Medicare payroll tax is 2.9 percent on all wages and self-employ-ment profi ts. With this new tax increase, wages and profi ts exceeding $200,000 ($250,000 for married couples) will now be faced with a 3.8 percent tax rate instead. Th is is a direct marginal income tax hike on small business owners, who are liable for self-employment tax in most cases.

In addition to these fi ve tax increases, another ramifi cation of the Aff ordable Care Act is the fallout from the many large and small businesses that will either be laying off workers or reducing full-time employ-ees to avoid the high penalties under the Aff ordable Care Act.

Among some of the nation’s companies that have announced plans to make adjustments are these:

• Welch Allyn, a manufacturer of medical diagnostic devices headquartered in the central New York town of Skaneateles, is laying off 275 workers over the next three years due to the new medical device tax.

• Dana Holding Corp., a supplier of axles, driveshafts, off -highway transmis-sions, sealing and thermal-management products, and service parts headquartered in in Maumee, Ohio, has warned its 21,500 employees of coming layoff s to help cover the $24 million it will need over the next six years for additional healthcare expenses.

• Stryker Corp., a medical device manufacturer based in Portage, Mich., is eliminating 1,250 jobs over the next year.

• Boston Scientifi c Corp., a developer, manufacturer and marketer of medical devices based near Boston, is cutting between 1,200 and 1,400 jobs while also shifting investments and workers to China.

• Medtronic Inc., based in Minneapolis and the world’s largest medical technology company, cut 500 jobs this year and will cut another 500 in 2013.

Contact Drew Blease, president and

founder of Blease Financial Services, 7358 N.

La Cholla Blvd., Suite 100, at drewblease@

bleasefi nancial.com or (520) 299-7172.

DREW BLEASE

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

Company Name Symbol Dec. 19 Dec. 12 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.02 0.02 0.00 0.02 0.12CDEX Inc CEXIQ.OB 0.07 0.08 -0.01 0.01 1.00Providence Service Corp PRSC 15.92 15.54 0.38 9.56 16.05UniSource Energy Corp (Tucson Electric Power) UNS 43.01 42.48 0.53 35.20 43.40

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 8.64 8.65 -0.01 7.97 10.92AMR Corp (American Airlines) AAMRQ 0.94 0.65 0.29 0.24 0.95Augusta Resource Corp (Rosemont Mine) AZC 2.33 2.60 -0.27 1.48 3.65Bank Of America Corp BAC 11.19 10.61 0.58 5.10 11.49Bank of Montreal (M&I Bank) BMO 61.65 60.97 0.68 50.95 61.81BBVA Compass BBVA 9.19 8.71 0.48 5.30 9.75Berkshire Hathaway (Geico, Long Cos) BRK-B* 90.10 89.32 0.78 75.50 90.93Best Buy Co Inc BBY 11.90 12.18 -0.28 11.41 27.95BOK Financial Corp (Bank of Arizona) BOKF 55.38 54.74 0.64 52.10 60.00Bombardier Inc* (Bombardier Aerospace) BBDB 3.57 3.39 0.18 2.97 4.93CB Richard Ellis Group CBG 19.96 19.69 0.27 14.66 21.16Citigroup Inc C 39.45 37.53 1.92 24.61 40.11Comcast Corp CMCSA 38.01 37.42 0.59 23.38 38.19Community Health Sys (Northwest Med Cntrs) CYH 31.46 29.87 1.59 16.11 32.70Computer Sciences Corp CSC 40.05 39.84 0.21 22.19 40.63Convergys Corp CVG 16.48 16.16 0.32 11.94 16.65Costco Wholesale Corp COST 98.68 97.72 0.96 78.81 105.97CenturyLink (Qwest Communications) CTL 39.75 39.07 0.68 35.83 43.43Cvs/Caremark (CVS pharmacy) CVS 48.75 47.54 1.21 36.44 49.23Delta Air Lines DAL 11.83 10.72 1.11 7.83 12.25Dillard Department Stores DDS 84.30 83.82 0.48 42.54 89.98Dover Corp (Sargent Controls & Aerospace) DOV 64.92 64.17 0.75 50.27 67.20DR Horton Inc DHI 19.92 19.21 0.71 12.06 22.79Freeport-McMoRan (Phelps Dodge) FCX 33.95 32.52 1.43 30.54 48.96Granite Construction Inc GVA 34.43 31.83 2.60 21.38 34.46Home Depot Inc HD 61.77 62.93 -1.16 41.52 65.92Honeywell Intl Inc HON 63.77 61.10 2.67 51.43 64.35IBM IBM 195.08 192.95 2.13 177.35 211.79Iron Mountain IRM 31.11 31.25 -0.14 27.10 37.70Intuit Inc INTU 62.13 60.28 1.85 50.89 62.33Journal Communications (KGUN 9, KMXZ) JRN 5.53 5.55 -0.02 3.94 5.85JP Morgan Chase & Co JPM 43.53 42.77 0.76 30.83 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 36.64 35.73 0.91 26.10 37.54KB Home KBH 16.66 15.27 1.39 6.17 17.30Kohls Corp KSS 44.75 43.75 1.00 42.72 55.25Kroger Co (Fry's Food Stores) KR 26.50 26.59 -0.09 20.98 27.11Lee Enterprises (Arizona Daily Star) LEE 1.16 1.18 -0.02 0.68 1.81Lennar Corporation LEN 39.27 37.87 1.40 18.83 39.88Lowe's Cos (Lowe's Home Improvement) LOW 35.11 34.73 0.38 24.76 36.47Loews Corp (Ventana Canyon Resort) L 41.17 41.44 -0.27 37.02 43.36Macerich Co (Westcor, La Encantada) MAC 57.73 58.40 -0.67 49.67 62.83Macy's Inc M 38.77 38.86 -0.09 31.43 42.17Marriott Intl Inc MAR 37.22 35.92 1.30 28.35 41.84Meritage Homes Corp MTH 37.95 37.37 0.58 21.87 42.59Northern Trust Corp NTRS 49.60 47.72 1.88 39.07 49.83Northrop Grumman Corp NOC 68.70 68.15 0.55 56.56 71.25Penney, J.C. JCP 20.88 19.45 1.43 15.69 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 18.46 17.11 1.35 5.88 18.66Raytheon Co (Raytheon Missile Systems) RTN 58.75 58.14 0.61 46.39 59.06Roche Holdings AG (Ventana Medical Systems) RHHBY 51.30 50.61 0.69 38.63 51.75Safeway Inc SWY 18.14 17.85 0.29 14.73 23.16Sanofi -Aventis SA SNY 46.74 46.66 0.08 33.03 47.76Sears Holdings (Sears, Kmart, Customer Care) SHLD 44.28 42.38 1.90 28.89 85.90SkyWest Inc SKYW 12.80 11.90 0.90 6.25 14.32Southwest Airlines Co LUV 10.56 10.02 0.54 7.76 10.20Southwest Gas Corp SWX 42.64 41.94 0.70 39.01 46.08Stantec Inc STN 39.75 39.64 0.11 25.74 40.40Target Corp TGT 61.52 60.54 0.98 47.25 65.80TeleTech Holdings Inc TTEC 17.87 17.74 0.13 14.04 18.23Texas Instruments Inc TXN 31.25 31.06 0.19 26.06 34.24Time Warner Inc (AOL) TWX 47.64 47.26 0.38 33.62 48.54Ual Corp (United Airlines) UAL 23.96 21.41 2.55 17.25 25.84Union Pacifi c Corp UNP 125.77 124.70 1.07 99.93 129.27Apollo Group Inc (University of Phoenix) APOL 20.72 21.01 -0.29 18.36 58.29US Airways Group Inc LCC 13.48 12.70 0.78 4.97 14.51US Bancorp (US Bank) USB 32.20 31.87 0.33 26.08 35.46Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 68.52 68.94 -0.42 57.18 77.60Walgreen Co WAG 37.24 36.67 0.57 28.53 37.75Wells Fargo & Co WFC 34.62 33.50 1.12 26.21 36.60Western Alliance Bancorp (Alliance Bank) WAL 10.65 10.10 0.55 5.85 10.99Zions Bancorp (National Bank of Arizona) ZION 21.54 20.60 0.94 15.15 22.81Data Source: Dow Jones Market Watch

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


INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

Book it. Th e worst is offi cially over for the region’s housing market.

Unless there is an unexpected, shocking, catastrophic change of market conditions, 2012 will be the statistical turning point that marks the industry’s recovery from the Great Recession. Th e bottom was 2011. And 2013 will start the transition into the long-antici-pated “new normal” for the future.

Book it. Year-to-date 8,755 foreclosure notices have been issued compared to 9,433 for all of 2011. With a margin of 678 with one month left in 2012, notices likely will decline this year.

Book it. Year-to-date, existing home sales are within 185 of last year’s total of 12,791 closings. Since July, closings have been av-eraging 1,064 a month.

Book it. Since December 2011, the aver-age sales price has gone up about $21,000 to $182,539 as of November. Th at is a 13 per-cent increase. Th e November median sales price of $144,627 was about $24,600 higher than in December 2011, a 20 percent gain.

Book it. Year-to-date, 1,903 new home permits have been issued compared to 1,438 for all of 2011 and 1,865 for all of 2010. It’s now likely that builders will pull more 2,000 permits this year.

Th rough November, new home closings totaled 1,382, already topping the entire year of 2011 by 90.

“Demand has been good through the last half of 2012 despite worries over consumer confi dence related to the November elec-tions and the impending fi scal cliff . We will most likely reach about 2,050 permits for the year, nearly matching the 2,077 permits

issued in 2009,” said Ginger Kneup, owner of Bright Future Real Estate Research.

“We still have a margin of about 500 homes between permits and closings so we expect the fi rst half of 2013 to post good new home closings as well,” she added.

Compared to 2011, every jurisdiction in the region has issued at least 10 percent more permits this year (see chart). On a percent-age basis, Oro Valley is up about 350 percent, followed by Marana, up 70 percent.

In real numbers, Marana also had the biggest increase, issuing 196 more permits year over year.

Statistically, housing’s nightmare is over MONTHLY BUILDING PERMITS: NOV. 2012

2012 2011 2010 2009

Pima County 46 27 35 56

Marana 36 22 13 12

Tucson 28 10 19 21

Sahuarita 20 9 9 23

So. Pinal 12 8 14 4

Oro Valley 13 2 1 5

Total 155 78 91 121

Source: Bright Future Real Estate Research

YEARTODATE BUILDING PERMITS: NOV. 20122012 2011 2010 2009

Pima County 543 473 637 701

Marana 478 282 323 179

Tucson 312 202 302 336

Sahuarita 258 169 294 492

So. Pinal 170 154 162 159

Oro Valley 142 40 43 52

Total 1,903 1,320 1,761 1,919

Source: Bright Future Real Estate Research

By volume, Pima County has issued the most permits this year at 543, followed by Marana at 478.

Scattered best-sellersAs a change of pace, the best-selling

neighborhoods in November were scattered across the entire region. By volume, the east side and Sahuarita were popular. On a per-centage basis, lower-priced homes near Tucson International Airport sold well.

Th e most homes, 61, were sold in zip code 85710, which is basically the neighbor-hood around East 22nd Street and South Pantano Parkway. Next biggest, 47 sales, were in Sahuarita and 45 sales occurred in the Sabino Canyon-area zip code of 85750.

On a percentage basis, all nine listings in Midvale Park’s 85714 zip code sold. In zip code 85747, a large area northeast of Old Spanish Trail abutting Saguaro National Monument East, 43 of 86 listings sold for a 50 percent ratio. Also at 50 percent, 26 of 52 listings sold in zip code 85756, which takes in neighborhoods near the airport between Interstates 19 and 10.

High levels of home inventory remain in

three areas with the most in Green Valley at 301 listings. Zip code 85739 was next high-est with 279 listings. It is the general area along North Oracle Road from Catalina State Park north to the junction of state routes 77 and 79.

Th e third-highest level was in the central Catalina Foothills area with 234 homes. Th e data is from the Tucson Association of Real-tors Multiple Listing Service.

Sales and leases• Oracle Offi ce Plaza LLC purchased a

multi-tenant offi ce building at 7491-7493 N. Oracle Road for $3.35 million from AEH In-vestors IV and PMH Investors IV, repre-sented by Michael Sandahl, CBRE. Th e buy-er was represented by Zach Fenton, Fenton Investment Company.

• Levine Investments LP purchased a former Chevron service station site at the southwest corner of East 22nd Street and South Kolb Road for $2.2 million from LCC-Kolb/22nd St LLC, represented by Brian Harpel, the Harpel Company. Th e parcel has been cleared and is being redeveloped as a McDonald’s restaurant.

• SMDSK Encanto LLC purchased En-canto Plaza, 3232-3244 E. Speedway, for $760,000 from Pacifi c Income Properties, represented by Brian Chang, Red Point De-velopment. Th e site consists of a 16,067 square-foot building on 56,130 square-feet of land. Th e buyer was represented by Deb-bie Heslop, Volk Company Commercial Real Estate.

• Disruptive Products LLC purchased 44.1 acres of vacant commercial land at the south-west corner of Postvale and Adonis roads, Ma-rana, for $200,000 from Wells Fargo Bank. Th e transaction was handled by Chuck Corri-ere, Keller Williams Southern Arizona.

• Southern Arizona Glassworks leased 5,268 square feet at 3880 S. Palo Verde Road, Suite 401-402, from Palo Verde Trust Part-ners, represented by Rob Glaser and Paul Hooker, Picor Commercial Real Estate Ser-vices. Th e tenant was represented by Fletch-er Perry, Colliers International.

• Cindy and Michael McGee, doing busi-ness as Cattleman’s Café, leased 1,900 square feet at 10110 N. Oracle Road, Suite 180 in Oro Valley from Jesjo Inc. Th e transaction was handled by Rob Tomlinson of Picor.

• Charlie’s Comic Books leased 1,810 square feet at 5445 E. 22nd Street from Lar-sen Baker, self-represented by Andy Seleznov and Melissa Lal.

• Everest Interscience leased 1,800 square feet at 2102 N. Forbes, Suite 107 from East Park VI Holding Company. Th e trans-action was handled by Rob Glaser and Ste-phen Cohen with Picor.

Email news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.

THE PULSE: TUCSON REAL ESTATE

12/10/2012 12/3/2012

Median Price $163,250 $151,000Active Listings 5,007 5,012New Listings 325 372Pending Sales 325 322Homes Closed 152 165Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 3.50% 3.75%APR 3.38% 3.625%APR 4.95% 4.95% 3.38%

15 YEAR 2.88% 3.125%APR 2.88% 3.125% APR 4.22% 4.22% 2.88%

3/1 ARM 2.75% 3.00%APR 2.75% 3.00% APRThe above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000Information provided by Randy Hotchkiss, National Certifi ed Mortgage Consultant (CMC) Hotchkiss Financial, Inc. P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000MB #0905432. Rates are subject to change without notice based upon market conditions.

12/18/2012


Using the word “cliff ,” as in fi scal cliff , is curious especially when politicians talk about going over it. Most of us would picture going off a cliff in the context of a car chase in an action movie or to me a better example is what happens to Wile E. Coyote in a Road Runner cartoon.

At this month’s University of Arizona Economic Outlook forecast, professor Gerald Swanson said he and those sitting at his luncehon table thought the ramifi cations of what might happen would be better described as going down a “slope” instead of a cliff . Other economists have suggested using the word “hill.”

Apparently the use of the word cliff stems from an appear-ance 10 months ago by U.S. Federal Reserve Chairman Ben Bernanke before the House Financial Services Committee where he talked about “a massive fi scal cliff of large spending cuts and tax increases” that would take place Jan. 1, 2013, if Con-gress didn’t change what it had set in place.

In these days of nine-second sound bites, that was all that was needed to put a proper state of panic on something that talking heads in the news media couldn’t otherwise explain.

Th e fact is the spending cuts and tax increases wouldn’t have had any immediate impact. Th eir aff ects would have taken place over weeks and months of 2013.

On the other hand, the word “cliff ” put pressure on those in Washington, D.C., to get a resolution before the end of the year. And yet they were responsible for manufacturing the crisis in the fi rst place due to their inability to get along with one another. Worse, they don’t feel any shame about it, either.

And when a resolution is reached, some of these same people will be hailed for doing something momentus.

Maybe cliff was the right word after all. We Amercians eff ectively handed the keys of our cars over to elected offi cials and said, “go ahead drive it off a cliff .”

It’s remarkable that when it comes to social skills and interactions, we in the U.S. expect less of our elected leaders than we do of our pre-schoolers and kindergarteners. People making business decisions would have failed if they acted as Congress did.

Sad holiday It’s not a Tucson business story but the Dec. 14 shooting

massacre of 20 little ones at Sandy Hook Elementary School in Connecticut has put a pall over this holiday season, the likes of which I haven’t felt since President Kennedy’s assassination before Th anksgiving when I was in junior high school.

It doesn’t help that our two grandsons, ages 5 and 2½, are out of town this year. Th ey’re getting extra special hugs when they get back on New Year’s.

Home delivery Four weeks from today, assuming everything stays on track,

subscribers to the print edition of Inside Tucson Business will start receiving their weekly copy on their driveway each Friday morning, along with any other newspapers you receive.

Please be on the lookout for a mailer any day now to update your delivery address.

Contact David Hatfi eld at dhatfi [email protected] or

(520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

First they create acrisis then call it a ‘cliff ’

EDITORIAL

Is there a Santa Claus?A now famous editorial published in the Sept. 21,

1897 issue of the New York Sun sought to answer this letter:

Dear Editor—I am 8 years old. Some of my little friends say there is

no Santa Claus. Papa says, “If you see it in Th e Sun, it’s so.” Please tell me the truth, is there a Santa Claus?

Virginia O’HanlonTh e Sun’s editorial then begins with:“Virginia, your little friends are wrong. Th ey have

been aff ected by the skepticism of a skeptical age. Th ey do not believe except they see. Th ey think that nothing can be which is not comprehensible by their little minds.”

“All minds Virginia, whether they be men’s or children’s, are little. In this great universe of ours, man is a mere insect, an ant, in his intellect as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.”

“Yes, Virginia, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist…”

Th e editorial goes on to express wonderment at what could be in the unknown:

“Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world” - and “Only faith, poetry, love, romance, can push aside the curtain view and picture the supernal beauty and glory beyond.”

So here we are 115 years later and probably most of the adults among us look upon such things as the Sun’s editorial as an anachronistic remembrance of simpler times and innocence.

Th at’s too bad.Th ere will be people who look back on us 115 years

from now and think these were the simpler times.Will they do so with any admiration for us living

through the Great Recession? Will they laugh at the folly of Americans fretting over

a “fi scal cliff ”? Will those living in Arizona’s Sun Corridor look back

upon political squabbles among our local governmental leaders as petty and insignifi cant?

Will they think these recent years of Arizona’s national notoriety on matters such as anti-illegal immigration legislation were the products of hateful people who didn’t know any better?

Will they think we gave politicians far too much authority over how we live our lives?

Anyone who has traveled outside the U.S. knows that nobody else celebrates holidays quite like we Ameri-cans. We go all out for almost every holiday. We may borrow and adapt traditions from other countries.

Some among us are critical for the materialism associated with our celebrations but the fact is they’ve grown from years of having the freedoms to do them in the ways of our imaginations.

Th at imagination is also what creates inventions and makes for successful businesses.

Without imagination, we could have settled for things as they were and never change. We’d be helpless. For Americans, there would be little to live for.

Th e Dec. 14 shooter in Newtown, Conn., didn’t have imagination. Twenty innocent little 6- and 7-year-olds and six of their adult school leaders lost their lives in a most despicable act.

Th at New York Sun editorial ends with: “No Santa Claus! Th ank God! He lives and lives forever. A thousand years from now, Virginia, nay 10 times 10,000 years from now, he will continue to make glad the heart of child-hood.”

It’s good and healthy to clear a mind to imagine and dream like a child. Anything is possible.

It’s also possible for us to work to make some of those dreams to come true.


OPINIONBUSINESS INK

Banks should tighten up their loose coins policyIt was one of those “you idiot” moments

that hit me weeks after the act. I realized my careless stupidity at a time and a place too late to do anything about it

Because there is money at risk, I’m still worried.

Soon after Labor Day, I started sorting through and clearing out closets cluttered with decades of stuff . Off to Goodwill went boxes and bags of too-tight clothes, mismatched small electronics and just plain old stuff .

Phase I of the de-cluttering campaign had involved scanning and saving thou-sands of old photos, slides and other visual keepsakes onto disks. Th at year-long project emptied six of those mega-large plastic storage bins from our home offi ce.

As the dust settled, several boxes of old coins emerged from the dark closet interiors and from under the beds. Long ago, they had been stashed away and forgotten.

It took several weekends to pick through it all. In total, some 125 rolls of coins were re-discovered, mostly pennies. Th ere were a dozen or so rolls of nickels, dimes and quarters mixed in. Plus, two old cigar boxes held loose 50-cent pieces and a few silver dollars.

With great anticipation, the Internet

research was on to determine what, if any, had rare or special value. Every paper roll was unrolled and carefully inspect-ed, then re-rolled again. In the end, there were no extremely valuable pieces of buried treasure.

After selling a handful of silver coins for scrap value, there was about $100 left in change.

Th e remaining coins weighed too much to take to the bank all at once. So instead, the rolls were boxed up and put in the car trunk. Th e fi nancial plan was simple: cash in fi ve or six rolls at a time for paper money.

Without naming names, the fi rst exchange was at our credit union. With $20 in coins from the car trunk, I went inside to cash a check. At the teller’s window, the heavy rolls were presented.

She looked at me funny. She handed me a pen. She said I had to write my account number on each roll. It was policy. Without giving it a thought, I scribbled out the

digits, got my $20 bill and left.It wasn’t until weeks later that I realized

the error of my ways. Th is time at our bank, I grabbed 10 rolls of pennies from the car trunk.

At the teller’s window, I began to scribble my account number on the rolls. She looked at me funny. She told me that was not necessary.

After an awkward silence, she off ered her opinion: “Th at’s really stupid if you think about it.”

I hadn’t.“Everyone who handles rolls will see it.”Good point.“Th at’s how fraud happens.”You’re scaring me.After getting back into the car with my

$5 bill for 10 penny rolls, I did start to think about it.

Slowly, my thoughts turned to anger. As careless as I was, think how risky it is for credit unions and banks to require customers to put their account numbers on rolls of coins.

It’s a dumb, dangerous policy that certainly increases the chances of identity theft, fi nancial fraud or illegal access to bank accounts. Once the rolls get into the back room, who knows who else sees them?

At the offi ce, a co-worker told me she had had the same experience. At her bank, a diff erent one than mine, policy also requires her to write her account number on rolls. She has since stopped trading rolled coins for paper money there. Likewise, my credit union is now off my exchange list.

If fi nancial institutions are so worried about fraud, why have such a reckless policy in place that could help fraudsters?

To me, the logic is weak: if someone only puts 49 dimes in a $5 roll, they want to know who to ding for the 10-cent shortage. Yet, if some fraudster steals an account number from a coin roll, the bank will spend more in time and resources trying to fi x the fraud.

Over the next several months, I’ll be watching my credit union statements very closely. In life, it’s easy to do stupid things when you’re not thinking or asking questions why.

I’ve learned a valuable lesson. At what cost is yet to be determined.

Contact Roger Yohem at ryohem@

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

appears biweekly and weighs in on local

political, social and business issues.

ROGER YOHEM

SPEAKING OUT

A little of this and that from around Tucson Th is time of year when there are many

holiday events, Tucsonans venture out to visit with one another in the spirit of the season. I learn news tidbits at these events. Such as:

• Th e Central Arizona Project cannot supply enough Colorado River water for thirsty Tucsonans and Phoenicians forever. Other water resources are under consideration.

For now, Tucson Water, is introducing its new year-round water conservation and effi ciency program, “Water Smart.”

Th e program off ers rebates for low-fl ow toilets, gray water systems, and rainwater harvesting. Th ere’s also a Water Smart program for businesses to reduce utility costs while saving water. Visit tucsonaz.gov/water/watersmart

• Tucson city elections will take place next year — the primary is Aug. 27 and the general is Nov. 5 — for city council seats in Wards 3, 5, and 6. Th ere might also be a ballot measure on mayor and council salaries. Since 1999, council members have been paid $24,000 a year and the mayor’s salary is $42,000 per year.

City Manager Richard Miranda will tap a citizen’s committee to research and study the salary matter and make a a recommendation for the November ballot. City residents who

want to serve on the committee should contact Yvonne L. Espino at [email protected].

• Let’s hope there is also a ballot proposal to make Tucson’s elections non-partisan. Th is is the only city in

Arizona with partisan council elections. I am ambivalent about ward-only elections, but if that would sweeten the deal on non-partisan-ship, then let’s add that to the mix.

• Th e Tucson City Council recently held a retreat. Th eir two native Tucsonan guests, former Arizona Attorney General Terry Goddard and Mesa Mayor Scott Smith, along with Stephen Gilliland, professor of manage-ment and organizations at the University of Arizona, talked about the past for being a foundation for the future. Th e speakers suggested looking at recruiting more small businesses rather than spending time and incentives on seeking a major employer.

• Th ere’s been speculation as to why Debra Chandler resigned this month as the city’s

director of economic development. Some elected offi cials like to be in the limelight on economic development issues without communicating to staff what is under consideration. Th is micromanagement can lead to staff frustration.

• For the past year, Lucy Amparano has served as a capable interim city transporta-tion administrator. More potholes have been fi lled and street medians cleaned because Amparano re-organized the streets depart-ment. Now she is going back into retirement.

• Fortunately, Tucson will not ban plastic bags. Any recycling numbers reported include plastic bags and shrink wrap from around the state, not broken down in each jurisdiction. Now a formula for better local data collection has been developed.

Th e Tucson City Council recently voted to increase plastic bag consumer educa-tion. Programs for school children already occur. Retailers will be responsible for employee and customer education at their respective stores.

• Tucson golfers believe it is short-sight-ed to close Fred Enke Golf Course, 8251 E. Irvington Road, one of the better desert courses in town. A strong marketing plan

would bring more players there.• Will Tucson be the home of the next

United States Secretary of Interior? Th ose close to U.S. Rep. Raúl Grijalva say he is not actively seeking the position. Besides, Secretary Ken Salazar hasn’t indicated he will resign.

• School closures in the Tucson Unifi ed School District would only cover about half of TUSD’s $17 million budget defi cit. Cuts will also have to be made in adminnistration.

• A well-organized strategy to get eligible Latino voters registered and to the polls paid off in the last month’s election in Arizona. Th e Arizona Hispanic Chamber of Commerce says Latino-registered voters comprise 18 percent of the state’s elector-ate, which is ahead of Colorado with 16 percent and Nevada at 14 percent.

• Tucson Arts Brigade headquarters has moved to 738 N. Fifth Ave., the “old YWCA” building. Th e staff is writing grants to continue their work with youths to replace graffi ti with artistic murals.

Th at’s it for now.

Contact Carol West at [email protected]. West served on the Tucson City Council from 1999-2007 and was a council aide

from 1987-1995.

CAROL WEST


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

STAFFPUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

STAFF WRITERROGER [email protected]

STAFF WRITERPATRICK [email protected]

STAFF RESEARCHERCELINDA [email protected]

WEB PRODUCERDAVID [email protected]

LIST COORDINATORJEANNE [email protected]

ART DIRECTORANDREW [email protected]

ADVERTISING DIRECTORJILL A’[email protected]

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ACCOUNT EXECUTIVEDAVID WHITE [email protected]

INSIDE SALES MANAGERMONICA [email protected]

DIGITAL SALES MANAGERJIM [email protected]

CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

InsideTucsonBusiness.com

Next week’s poll: If the “fi scal cliff” is not resolved, do you know anyone whose job may be eliminated as a result?

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

Make the news

Twitter Followers: 4,508

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Yes 31.5% No 68.5%

OPINIONGUEST OPINION

Fiscal cliff could stall Arizona’s entrepreneurial leadership As the fi scal cliff discussion takes

Washington, D.C., by storm, a number of state governors paid a visit to the White House to bring their perspectives on the complicated negotiations. Th e one apparent theme of the visit was a plea for a solution to the fi scal cliff debacle. Th is is for a good reason. Failure to fi nd a solution will, in all probability, mean another painful recession for the nation and the states will get the short end of the stick.

For Arizona, memories of the “great recession,” which lasted almost 2½ years and ended in December 2009, are still fresh. Th e state suff ered immensely.

Arizona gross domestic product fell by 8.2 percent in 2009 and at the height of recession the state’s unemployment rate reached almost 10 percent. State tax revenues, which mainly rely on income and sales taxes, fell by nearly one-third during the recession. Arizona lawmakers took appropriate actions to confront the problem head on. Major jobs packages that included business tax reductions and job incentives were signed into legislation in 2010 and 2012.

Arizona has begun to slowly recover, but unemployment is still a problem (8.1 percent in October 2012). However, recent state tax changes have put the state on the right path. Job creation has started and the 2011 Kauff man Index of Entrepreneurial Activity put Arizona at the head of the pack. Arizona had the highest entrepreneurial

activity rate in the nation, 520 per 100,000 adults were creating businesses each month compared to an overall number of 320 per 100,000 adults for the nation as a whole. Any bad news from

Washington, D.C., such as the possible increase in the federal capital gains tax rate, will be a direct impediment to Arizona’s economic recovery.

Investors already face high combined federal and state tax rates on capital gains. An analysis released by the American Council for Capital Formation based on a survey conducted by Ernst & Young shows investors currently face state-level capital gains taxes in 41 states with an average top individual capital gains tax rate on corpo-rate equities of 5.7 percent in 2012.

Combined with the federal rate, these taxes substantially increase the separation between what an investment yields and what an individual actually receives (the “tax wedge”). Th e higher the tax wedge, the fewer investments that will be worth an investor’s time and risk, resulting ultimate-ly in fewer investments being undertaken and longer holding periods as investors delay selling assets.

Both of those outcomes will ultimately further pressure tax receipts.

While Arizona’s capital gains tax rate is below the U.S. average, an Arizona resident currently pays a top combined eff ective federal and state rate of 18 percent.

Assuming the Bush-era tax cuts, including those on capital gains, are extended through the end of 2013, that rate will increase to 21.8 percent due to the new mandatory 3.8 percent Medicare surcharge on savings and investment which takes eff ect next year as part of the new health care law.

Th en there is the most sobering scenario — if Congress doesn’t act and allows the Bush-era tax cuts to expire, the federal capital gains taxes will return to 20 percent. Under that scenario, Arizona residents would see a dramatic jump to a 27.7 percent combined rate (including the Medicare surcharge).

Legislation was signed into law on May 11, 2012 included a 25 percent reduction in the state capital gains tax rate (phased in over three years beginning July 1, 2014). Th is was the right thing to do to spur entrepreneurial activity in Arizona.

However, if the nation goes over the fi scal cliff , the state’s eff ort might prove fruitless, especially in terms of investment and job creation. Th e increase in federal rates will more than off set the reduction in Arizona’s capital gains tax rate.

In recent years, each $1 billion increase

in investment in the U.S. is associated with an additional 23,200 jobs. Conversely, decreasing the amount individuals and fi rms will invest due to federal and state capital gains taxes form a direct impedi-ment to entrepreneurship and economic growth.

Research by Allen Sinai, an internation-ally highly regarded economist, has already predicted a decrease in jobs simply from moving from the current 15 percent tax rate on long-term capital gains to 20 percent. Real economic growth falls by an average of 0.05 percentage points and jobs will decline by an average of 231,000 per year.

For Arizona to keep its entrepreneurial stride, lawmakers must foster a favorable tax and business climate to allow risk taking and investment. Th e state has taken important steps to do just that. However, it is hard to keep your head above water when the federal deadlock threatens to pull it back under.

A speedy and responsible resolution to the crisis in Washington will allow states like Arizona to breathe a sigh of relief.

Dr. Pinar Çebi Wilber is a senior

economist for the American Council for

Capital Formation (www.accf.org), a

Washington, D.C., nonprofi t, nonpartisan

organization promoting pro-capital forma-

tion policies and cost-eff ective regulatory

policies.

PINAR ÇEBI WILBER

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mayor and council?

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Documents

Inside Tucson Business 12/21/12