inside tucson business 01/18/2013

Real estate’s bona fi de recoveryAfter 6 years, the free fall is finito

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Getting more with less juiceWorking to cut supercomputers’ super use of power

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Arizona seeks a sixth ‘C’Gov. Brewer adds ‘competition’ into state’s 5-C legacy

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Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • JANUARY 18, 2013 • VOL. 22, NO. 33 • $1

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From refugee to entrepreneur: An owner’s

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NOMINATE TODAY

Inside Tucson Busienss

Here’s your chance to make some news. Positive news. Starting today, Inside Tucson Business is launching its annual search for Up & Comers.

Th is will be the 11th year of the special recognition in which nine people will be selected from your nominations.

We’re looking for people who, while still early in the careers, are already making a diff erence for the better, on the job, in the community

or in some other fashion. In keeping with the notion that these are Up & Comers who are destined to make even bigger contributions there is an arbitary age limit: All nominees must be under the age of 45.

Other than that, it can be diffi cult to pinpoint exactly what makes an Up & Comer.

We know they’re committed to making a diff erence, whether it’s their chosen career paths, overall leadership, in some form of com-munity service, mentoring or doing

good in some other way. Sometimes they’re people who

are making a diff erence but have been overlooked.

We’re looking for the qualities in a person you think are making the crucial diff erence that will make the Tucson region better in the future.

Nominations are being taken on-line at www.InsideTucsonBusiness.com. Look for the Up & Comers icon. Click on it to fi nd the form. If you’ve been through this exercise in previ-ous years but were overwhelmed

by the form, please check out this year’s form. We’ve tried to make easier than ever. Self-nominations are welcome.

Th e deadline to submit nomina-tions is 5 p.m. Feb. 18.

Th en, look for our honorees to be profi led in a special section in the April 12 issue of Inside Tucson Busi-ness, which will be followed up by a special reception.

Here’s looking for your nomina-tions and honoring those who will make a diff erence for Tucson.

Search is on for 2013 Up & Comers honorees

At the Tucson Association of Realtors 2013 Forecast, economist Lawrence Yun, left, explained to TAR president Cathy Erchull and TAR CEO Phil Tedesco why Tucson is “uniquely positioned” for a run-up in housing prices this year.

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NEWSEconomic competition also on Brewer’s platform By Roger YohemInside Tucson Business

Buried in all the buzz about Gov. Janice Brewer’s plan to now have the state par-ticipate in ObamaCare were her business-related proposals to make Arizona more competitive.

In her State of the State address on Tues-day (Jan. 15) in Tucson at the Westin La Paloma Resort and Spa, the governor said her 2013 business agenda will focus on “re-moving the barriers to economic growth in Arizona.”

Specifi cally, the governor called for re-forming the state’s sale tax system.

Sales taxes are the most critical source of revenue for core state programs but “one of the most complicated systems in the nation,” she said.

“It is an accountant’s dream but a busi-ness owner’s nightmare. Arizona’s local and state governments have created a tax system with so many twists and turns that we make it diffi cult for businesses to simply pay what they owe,” Brewer said.

A menu of reforms will be considered, such as standardized licensing, centralized auditing, state-run collection and changes in the construction industry.

“Th is complicated system acts as one more barrier to economic growth. Th is has gone on long enough,” said Brewer.

Historically, Arizona has relied on its fa-mous “fi ve C’s” to drive the economy: cop-per, cattle, cotton, citrus and climate. But as the state enters is second century, Brewer added another “C” to the mix: competition.

“Today, Arizona must compete for the most desirable jobs for our citizens, the fi n-est teachers for our schools and the most tal-ented students and faculties in our universi-ties. Likewise, citizens must compete to earn a living, build a future and raise a family,” she said.

To prepare for the future, state legislators had to address the fi nancial crisis of the past. Fallout from the Great Recession crushed the real estate market, cost the state 300,000 jobs and caused a $3 billion budget defi cit. To put the state back on the road to recov-ery, lawmakers made many unpopular and

Gov. Jan Brewer and Tucson Metro Chamber CEO Mike Varney.

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tough decisions.Brewer credited legislators for working

together to restore the state’s fi nancial stabil-ity. Today, the budget is balanced and $150 million has been restored to the “rainy day” fund.

“Together, we made great strides in the past four years to improve Arizona’s com-petitive position. We faced the hardest of times, but sustained and strengthened state government through the downturn,” she ex-plained. “We’ve limited regulation and en-acted the largest and most deep-reaching tax cuts in state history.”

Per capita, Arizona now has the second-lowest number of state employees in the nation. Th e state’s personnel system was re-formed to maintain a stable workforce that is motivated by performance and account-ability.

“In this new economy, talent is king. Cre-

ativity is the new capital and competition is worldwide,” she said.

To move forward, Brewer emphasized that education is the “most fundamental and lasting key” to Arizona’s competitiveness. Th e state’s universities are critical economic drivers and every year, the state awards $1 billion in research funding.

Th e University of Arizona receives more than 60 percent of that funding.

“As Arizona fi ghts to compete in the years ahead, I know our universities will be among our greatest assets,” Brewer said.

Th e State of the State Address was pre-sented by the Tucson Metro Chamber. Brewer took the podium and received a long standing ovation from over 700 people in at-tendance.

Contact Reporter Roger Yohem at ryohem@

azbiz.com or (520) 295-4254.

Kozachik switches to Democratic Party

Tucson’s outspoken Ward 6 City Council-man, Steve Kozachik, has changed his party registration from Republican to Democrat.

“Th e Arizona Republican Party is an ideo-logical outlier. I am not, and I see nothing that indicates that leadership is inclined to move in any direction but further away from what I believe are the values of this community,” Kozachik wrote in a statement explaining his decision.

Kozachik has often clashed with GOP leaders, particularly Republican members of the state Legislature, who he had accused of ideological rigidness and working against the interests of Southern Arizona.

Th e councilman noted that he has often worked in a collaborative manner with his city council colleagues, all of whom are Democratic Party members.

“During the past three years, I have main-tained my commitment to study issues in-dividually, invite to the table the diverse set of voices that make up our community, and participate in crafting public policy that at-tempts to refl ect the varying points of view I have heard,” he wrote.

Despite his generally pro-business posi-tions and willingness to take on issues like Rio Nuevo, road maintenance and the po-tentially underestimated costs of operating the city’s streetcar project, many in the GOP had grown increasingly critical of Kozachik.

Th ere also was the looming possibility of the party running a primary challenger against Kozachik in this year’s election.

IRS requests Rio Nuevo documents for audit

Rio Nuevo Multipurpose Facilities District offi cials this week said the Internal Revenue Service has requested documents for the purpose of an audit.

Th e documents requested are related to a 2002 bond, which funded the $35 million purchase of the Tucson Convention Center from the city. Rio Nuevo then leased the fa-cility back to the city.

As part of the original law that established Rio Nuevo, the body was required to own or lease a multipurpose facility like the TCC to receive tax increment fi nancing funds.

Th ose funds are gathered from sales taxes paid within district boundaries, roughly from downtown to Park Place Mall along Broadway.


Research Corp. president James Gentile to step down, return to academics

NEWS

By Patrick McNamaraInside Tucson Business

After eight years as president of the Re-search Corporation for Science Advance-ment, James Gentile has decided to retire and move back into academics.

“I wouldn’t have left the Research Corpo-ration,” Gentile said. “Th is literally showed up at my doorstep.”

Gentile plans to leave his position as president of the scientifi c-research granting organization and return to Hope College in Holland, Mich., where he’ll be the dean of sciences and a classroom instructor.

He worked at the college for nearly 30 years before moving to Tucson to head the Research Corporation.

“Th e Research Corporation was a great place to be,” Gentile said.

During his tenure, Gentile said he was proud to have helped Research Corporation thrive during the down economy, helping to build new partnerships with other foundations and indus-tries and helping to increase Research Corporation’s na-tional profi le through his fre-quent writings in publications like the Huffi ngton Post, Sci-ence Magazine, Th e Chronicle of Higher Education and Sci-entifi c American.

Th e 100-year old Research Corporation for Science Advancement, now headquartered at 4703 E. Camp Lowell Drive, was founded in 1912 by Frederick Gardner Cottrell, who invented the electrostatic pre-cipitator, a device used to reduce the pollu-tion pouring from industrial smokestacks.

He started the organization with the in-tention of buying inventions and patents then licensing the technologies to industry. Profi ts from the ventures were intended to fund sci-entifi c research.

Over the decades, Research Corporation moved away from patent collection and fo-cused mostly on funding scientifi c research through grants. It has funded the work of thousands of scientists, 40 of whom have been awarded Nobel prizes.

In 2011, it had assets valued at more than $128 million and gave out $3.6 million in grants.

Th e organization came to Tucson in 2003 but maintains a New York charter.

Many of its board members also live in the New York area and the northeast. None of the board members lives in Tucson.

“From a stepping down standpoint, the timing is right,” Gentile said.

He said the group has reached a stage where it should re-evaluate its focus.

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MORE INFO

Research Corporation for Scientifi c Advancement4703 E. Camp Lowell DriveSuite 201(520) 884-7810www.rescorp.org

James Gentile plans to retire from the Research Corporation for Sccientifi c Advancement. He has accepted a position as dean of sciences at Hope College in Michigan.

“Th ere’s a time when an organiza-tion has to stick its fl ag in the ground and say, ‘success’,”

Gentile said. Th at new direction could look toward

funding specifi c areas of scientifi c research or directly funding scientists.

Jack Pladziewicz, a former vice president, has been named as interim president.

While he wasn’t planning to leave, Gen-tile said organizational rules would have re-quired he retire in four years at age 70. Th e same holds for board members.

Representatives from Hope College con-tacted Gentile late last year to see if he was interested in returning to his old job.

“Th e biggest hook for me was to get back into the classroom,” Gentile said.

He plans to keep the job on a transitional basis for two years.

Gentile worked much of his career in aca-demics.

Originally from Chicago’s south side — home of the White Sox, he reminds — Gen-tile earned an undergraduate degree from St. Mary’s University of Minnesota. He went on to earn a master’s and doctorate from Illinois State University and spent two years at Yale University conducting post-graduate work in human genetics.

In 1976, Gentile began teaching biology at Hope College and later was promoted to

dean of sciences. “I’ll be replacing my replacement,” he

joked, noting the person hired to replace him as dean in 2005 plans to move on.

For Gentile, his volunteer work in Tucson Unifi ed School District’s John B. Wright Ele-mentary School helped to reignite his interest in teaching. He and others in the community, many with University of Arizona connec-tions, have essentially adopted the mid-town school, donating time and money and giving science lectures.

Gentile said university centric collabora-tion with public schools should act as model to better educating area students for careers in the sciences.

“It’s going to take a university center to drive that,” he said.

Th e region’s science-based industries also should have a hand in strengthening educa-tion by working with schools to build curricu-lums designed to meet their employment needs, Gentile said.

Th e Tucson region’s growing bio-tech and high-tech economies have great potential, Gentile said, but that has yet to be fully real-ized.

“I think Tucson should diversify in the scientifi c industries,” he said. “Th at would be my recommendation — bio-tech is great, but I think we need a diversifi ed portfolio.”

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

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Arizona Commons sold for $5.6 million

Arizona Commons II, a student hous-ing complex near the University of Ari-zona, has been sold to a Phoenix investor for $5.6 million. Th e property, located at 1920 N. First Ave., was a fi nancially dis-tressed property held by affi liated entities of banks Wells Fargo Bank and Morgan Stanley.

Th e complex features 247 student beds in 88 units, four swimming pools, a fi tness center, recreation room and on-site laun-dry facilities. It was built in 1972 and last renovated in 2012.

Th e buyer was MCS Capital Partners LLC of Phoenix. Th e seller was C-III Asset Management LLC, acting as special ser-vicer for Wells Fargo Bank, as trustee for the holder of Morgan Stanley I Inc. com-mercial mortgage pass through certifi -cates, series 2006 - 1st Quarter 2012.

Th e sale represents a value of $63,636 per unit and $22,672 per bed.

Good Friday morning,at least we hope it is

If you are reading this week’s printed issue of Inside Tucson Business on Friday morning, then the switch to direct deliv-ery for you was a success.

Th is week’s issue is the fi rst to be deliv-ered primarily by newspaper carrier. Over the past six weeks, Inside Tucson Businesshas been asking subscribers to switch their delivery address to their homes to take advantage of the new delivery sys-tem.

Any subscribers who experience a problem with the new delivery system can report those either online at www.InsideTucsonBusiness.com or by calling (520) 295-4219. Redelivery on Saturday is available for missed copies reported by no later than 11 a.m. Fridays.

Subscribers who specifi cally request-ed they continue receiving their copies via the U.S. Postal Service will continue to receive them that way, as well as sub-scribers using post offi ce boxes or living outside the Tucson region delivery area.

Due to changes at the U.S. Postal Ser-vice, postal deliveries will be delayed, especially once the Tucson mail sorting center is closed in February.

Any subscribers that would like to make a change in their delivery address can do so by emailing [email protected], printing their mailing address as it currently appears and the new address where you like to start receiving copies in future weeks.


NEWS

Loose fi scal policy will boost housing market for 2 years

By Roger YohemInside Tucson Business

Mortgage rates that are at “unimagina-ble, life-time lows” will boost the housing market for two more years before infl ation returns. Home prices in the Tucson region could increase by as much as 10 percent on average this year.

In the short term, the Federal Reserve’s “ultra loose” monetary policy, known as Quantitative Easing, will sustain the na-tion’s slow recovery from the Great Reces-sion. Th is strategy allows banks to borrow money from the government at virtually zero percent interest.

Looming on the horizon, however, are seriously dark economic clouds in the form of trade and budget defi cits.

“Although the fi scal cliff was avoided, it did not solve the budget defi cit issue. Th e defi cit is scheduled to go up and up, it is out of control. Put it this way, you have a $1,000 credit card debt and your rich un-cle helps by giving you $60. Is that going to help your debt situation? Th at was the

deal that was signed,” said Lawrence Yun, chief economist for the National Associa-tion of Realtors.

“Th ere will be a continuing war of nerves in Washington, D.C. Th e debt ceil-ing comes up in about two months,” he said. Yun was the keynote speaker at the Jan. 11 Tucson Association of Realtors’ 2013 Real Estate Forecast.

Quantitative Easing is a “non-tradi-tional” fi scal policy that enables the gov-ernment “to run the economy by printing a lot of money. Inevitably, that means higher infl ation by 2015,” Yun explaind.

At that time, he projects infl ation will be 4 to 6 percent. For 2012, the rate was about 2 percent. Th is year he expects in-fl ation will tick up slightly. And although growth in the gross domestic product is essentially zero nationally and net job creation locally “has fl at-lined,” the next two years look promising for real estate in the region.

“Infl ation and interest rates are relat-ed. So even if mortgages go up to 4 per-cent, it’s nothing to panic about. Tucson

is uniquely positioned for housing price in-creases,” said Yun.

Looking back, 2005 was housing’s bub-ble year and 2008 the crash. In 2009, hous-ing data had already started to stabilize as measured by unit sales. Prices, however, were still in a free fall as the U.S. dealt with the fi nancial market crisis and 8 million lost jobs.

“From my perspective, the data was stabilizing. Not the market. We still had an economy where 90 percent of the popula-tion had jobs. From your perspective, 2009 was awful. And 2010 and 2011 were awful. In 2012, things were breaking out because prices always lag sales,” Yun said. “Th is mo-mentum will continue into 2013.”

Last year, Phoenix was one of the na-tion’s hottest price-recovery markets. In-vestors drove prices up 20 to 25 percent and bought thousands of homes at bargain prices. For investors still wanting distressed real estate, “Phoenix is no longer in play. Many will look to surrounding areas like Las Vegas and Tucson,” said Yun.

Nationally, most housing trends will fi nd and benefi t the Tucson market. Job creation, “foot traffi c,” new home construc-tion and total sales were higher last year. Distressed “shadow inventory” is falling and listings are trending down.

For fi ve consecutive years, household formation has been suppressed.

“Th is is highly unusual, rare to have such an extended period. Th ere are many, many people living in crowded spaces,” Yun said. “Young adults moved in with their parents or found that third or fourth extra room-mate. In 2012, we saw a bursting out and that increases housing demand.”

Housing is now one of the economy’s strengths, but Yun cautioned the sector still faces uncertainties. Although the economic metrics are positive, the downside concerns are almost all political.

Facets of the housing industry “are seen as potential sources of revenue in Washing-ton. Th e downside is potential regulation,” Yun said, “including continuing tight un-derwriting standards.”

Given the nation’s massive budget defi -cit, the home mortgage deduction will con-tinue to be in play. Other issues include a capital gains and/or sales tax on home transactions, larger down payment mini-mums and higher loan processing fees.

“Certainly two years from now, mort-gage rates will be measurably higher,” Yun said.

Contact reporter Roger Yohem at

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

Lawrence Yun, chief economist for the National Association of Realtors.

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This Week’s Good News Great weather

Th e six consecutive nights of below freezing temperatures Tucson experienced through Wednesday were miserable. How many of us would have traded those for a hot dry 110-degree day in June? Th e fi re danger in June, though, is another matter.

So why are freezing temperatures good news? Because when it comes to weather, this is about as bad as it gets. Th is weekend, temperatures are supposed to be back into the 70s. And more than 300 soccer teams from all over Arizona, New Mexico, west Tex-as and Sonora will descend upon Fort Lowell Park and other venues for the 22nd annual Tucson Association of Realtors Shootout to enjoy the weather and some good times.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Beware of car bargains Anyone shopping for a late-model car who

comes upon a terrifi c bargain might want to do a little more checking. Th ousands of cars that were damaged by fl ooding as a result of Super-storm Sandy in late October are now being sold in auction, presumably for their salvageable parts. But as many as 20 percent could have their titles “washed” and re-sold whole.

Arizonans have some safeguards, mainly because it is one of only nine states fully partici-pating in a federal database tracking every ve-hicle title history electronically by VIN.

Experts say ask for a vehicle history report, such as CarFax, and make sure it’s recent, doesn’t include any time gaps or the tell-tale sign of a short stay in any state.

Together again Considering the bad rap private venture

capital fi rms such as Bain Capital took during last year’s election, Tucson area consumers have witnessed a success story over what Cerberus Capital Management has done with about 300 underperforming Albertsons supermarkets since acquiring them in 2006. Another 300 Al-bertsons stores were acquired by Supervalu, a chain based in Minnesota.

Th e fi nancial fortunes of the two halves of Albertsons have been reversed. In mid-March Cerberus will reunite the chain along with three others, Acme, Jewel-Osco and Shaw’s — un-der a $100 million in cash plus $3 billion debt deal. Th e acquisition includes 877 stores and will bring the company to a total of 1,069 stores across the country.

Of the original 300 Cerberus acquired in 2006, the company is now operating 197. Not a single Albertsons was closed in the Tucson mar-ket which was and remains strong.


NEWS

Bio-tech in Tucson growing, but has challengesBy Patrick McNamaraInside Tucson Business

Tucson has small but growing bio-tech and medical technology industries.

At a Greater Tucson Leadership class meeting on healthcare issues at Tucson Medical Center this month, attendees heard from industry leaders about the challenges and strengths of the bio-tech sector.

Mara Aspinall, president of Ventana Medical Systems; Kathleen Perkins, board chair University of Arizona Bio 5; and Dr. Carolyn Compton, CEO and president of the Critical Path Institute (C-Path) were on hand to speak with the Greater Tucson Leadership class, which meets one Friday each month to learn from experts from specifi c industries.

Perkins told the group that a strong suit for the industry in general has been a new spirit of collaboration among researchers.

“Th ings are not happening in individu-al scientists’ offi ces like they used to,” she said.

In addition, scientists more frequently work across disciplines to solve problems and further research.

“C-Path is all about collaboration,” Compton said, addressing the issue of strengths in the bio-tech industry.

She said the group brings together the work of more than 1,000 scientists and researchers with the goal of getting more medications to market faster.

C-Path also works closely with the U.S. Food and Drug Administration to get new medications approved, a process that in past could take as long as 10 years and cost as much as $11 billion, she said.

“Th ere is a new collaborative business model,” Compton said. “Th e old mega-breakthrough drugs in medicine are going the way of the brontosaurus.”

Aspinall said Ventana Medical, which was bought by international pharmaceu-tical company Roche in 2008, also has begun to work in collaboration.

“We collaborate well, but we don’t collaborate as well as we should,” Aspinall said.

As to where the indus-try stands today in terms of jobs and building the much sought after indus-try cluster, like the high-

tech cluster that came together in Silicon Valley, the foundation has been laid but there’s still a way to go, Aspinall said.

“We have made tremendous progress, but we’re not where we need to be,” she said.

As more companies relocate to South-ern Arizona and more startups emerge, a critical mass could develop that would make the region a real player in bio-tech.

As that continues to develop, however, Aspinall said the industry will begin pro-viding more and varied employment pos-sibilities.

“Bio-tech is not an industry with all Ph.D.’s,” she said. “It’s like any other indus-try, there’s a full universe of diff erent jobs that need to be done.”

While a company like Ventana has little trouble fi lling positions, Aspinall said some people have turned down off ers because they didn’t want to live in Tucson.

Perkins said that speaks to a problem of identity that Tucson has.

“Tucson is still working on its image,” Perkins said.

She said places like Silicon Valley, Bos-ton and New York all are known to people outside of the market.

Even a smaller market like Austin, Texas has a recognizable image.

“Austin is a place where you can get a job in 48 hours if you’re a scientist,” Per-kins said.

Leadership class attendees also heard from experts on issues of mental health, healthcare economics and pediatric care.

Nancy Johnson, chief operating offi -cer of El Rio CHC; Jennifer Cabe, execu-tive director of Canyon Ranch Institute; Cyndi Th ompson, with the UA Zuckerman College of Public Health;

Julia Strange, vice president of community benefi t with Tucson Medical Center all spoke about collective impact in health-care.

Neal Cash, president and CEO of Com-munity Partnership of Southern Arizona; Mimi Kennedy- Ross, psychology associate with Arizona State Prison; Clarke Romans, executive director for the National Alliance on Mental Illness of Southern Arizona; Mary Redding-Smith, attorney with the Military Spouse Mental Health Profession-al Association talked about mental health.

Dr. Matt Heinz, a former state represen-tative; Dr. Daniel Derksen, professor and chair public health policy and manage-ment; Larry Aldrich, chairman and execu-tive director of Arizona Business Coalition on Health spoke about the economics of healthcare.

Shay Beider and Jamie Lakin Kelley of Integrative Touch for Kids and Ciara Gar-cia and Liz McCusker from Tu Nidito spoke about pediatric care issues.

Greater Tucson Leadership selects a class of about 35 community leaders each year to attend a series of forums once a month from August through May.

Contact reporter Patrick McNamara

at [email protected] or (520)

295-4259.

medications to market faster. C-Path also works closely with the U.S.

Food and Drug Administration to get new medications approved, a process that in past could take as long as 10 years and cost as much as $11 billion, she said.

“Th ere is a new collaborative business model,” Compton said. “Th e old mega-breakthrough drugs in medicine are going the way of the brontosaurus.”

Aspinall said Ventana Medical, which was bought by international pharmaceu-tical company Roche in 2008, also has begun to work in collaboration.

“We collaborate well, but wedon’t collaborate as well as weshould,” Aspinall said.

As to where the indus-try stands today in terms of jobs and building themuch sought after indus-try cluster, like the high-

from experts on issues of mental health, healthcare economics and pediatric care.

Nancy Johnson, chief operating offi -cer of El Rio CHC; Jennifer Cabe, execu-tive director of Canyon Ranch Institute; Cyndi Th ompson, with the UA ZuckermanCollege of Public Health;

As more companies relocate to Southern Arizona and more startups emerge, a critical mass could develop that would make the region a real player in bio-tech.

PUBLIC NOTICESSelected public records of Southern Arizona bankruptcies and liens.

FORECLOSURE NOTICES SC118119 LLC5263 W. Gallery Canyon Place, Marana 85658 and 1226 W. Weathered Stone Place, Oro Valley 85755 Tax parcel: 218-40-505 and 219-19-4470Original Principal: $400,000.00 Benefi ciary: Northern Trust Company Auction time and date: 10 a.m. April 4, 2013 Trustee: Elizabeth S. Fella, Quarles & Brady, 1 S. Church Ave., Suite 1700

LIENSFederal tax liens El Sol and Mark S. Mendoza, 1905 E. Elm St. Amount owed: $28,575.78.Mikes Artist Mgmnt Co-MJLJR Propert and Michael J. Lembo Jr., PO Box 35880, 85740. Amount owed: $11,299.21Blue Horizon Consultants LLC and Daniella Zepeda, 890 E. Pentecrest Road. Amount owed: $3,928.65.Asian Bistro Osake LLC and Mitsuyuki Watabe, 5414 N. Moccasin Trail. Amount owed: $5,796.80. Bahti Indian Arts and Bahti Inc., 4330 N. Campbell Ave.,Suite 73. Amount owed: $62,596.76. Fred’s Carpentry and Fred Alonzo Slunaker, 7590 W. Illinois St. Amount owed: $11,460.69. Pryde Business Systems LLC and Lyle S. Wood, PO Box 31888, 85751. Amount owed: $8,057.57. Coupe’s Village Bakery and Thomas Scott, 706 W. Mountain Ridge Drive, Oro Valley. Amount owed: $27,115.10. Langley Village Bakery and Thomas Scott, 706 W. Mountain Ridge Drive, Oro Valley. Amount owed: $16,291.27. Ross Intertraders LLC and Samuel Sainz Rodriguez, PO Box 35381, 85740. Amount owed: $1,062.05. HDA Impression Preservations and Matthew LymanDisraeli, 4990 W. Waterbuck Drive. Amount owed: $24,137.86.Oasis at Wildhorse Ranch LLC, 6801 N. Camino Verde. Amount owed: $1,270.00. MDB-Tucson Distributors Inc., 7006 W. Dupont Way. Amount owed: $10,061.52. Carefree Landscaping Inc., 2075 E. Benson Highway. Amount owed: $1,068.00. Amereno’s Little Italy and Bon Seba LLC, 2933 E. Grant Road. Amount owed: $33,384.36.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)Production Contracting Inc., 744 E. 34th St. Amount owed: $2,821.32. Better Bodies Personal Training Corp., 7285 E. Tanque Verde Road, Suite 135. Amount owed: $7,790.52. Le Gourmet Inc., 7573 E. Truces Place. Amount owed: $2,437.62. IRI Sabino Springs Golf Cource LLC and Arizona National, 11622 El Camino Real, Suite 100, San Diego. Amount owed: $17,163.26.Vistoso Golf Course LLC, 955 W. Vistoso Highlands Drive, Oro Valley. Amount owed: $23,866.26.

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

CMR Construction LLC, PO Box 26725, 85728, against Ventura Pacifi c Development, 2469 N. Country Club Road, and Pennington Street Partners LLC, c/o Fenton Investment Co. Inc., 6700 N. Oracle Road, Suite 233. Property: 101-103 E. Pennington St. Amount owed: $11,164.50.FJS Construction, 585 S. Cherry Ave., against Southwest Gas Corporation, PO Box 98510 LVC-435, Las Vegas 89193 and Midstate Mechanical Inc., 1850 E. Riverview Drive, Phoenix. Property: 3401 E. Gas Road. Amount owed: $7,302.70.Intermoutain Lock & Security Supply Co. Inc., 306 S. Main St., Salt Lake City, against JMDH Real Estate of Tucson LLC, 1265 N. Kraemer Blvd., Anaheim, Calif. Property: 601 W. 22ndSt. Amount owed: $2,784.24.


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SALES JUDO

Selling Tucson to entrepreneurial college grads with suds and musicOne evening last week, I drove around

downtown searching among the open trenches and building construction for the new Th under Canyon Brewery. Rumor had it that its owner, Steve Tracy, had OK’d the “soft” launch of his second location in the region.

For those who may not know, Tracy is a talented entrepreneur who transitioned from a fi rst career as a mining engineer to a second as brew master, restaurateur and, in eff ect, an accidental member of downtown Tucson’s economic team.

I spotted his new location as I rolled past it driving east on Broadway just beyond Fifth Avenue. It’s right across the street from the Cadence, a six-story 456-bed student housing development that’s going up and due to open in August.

When I slid onto a stool at the bar at the new Th under Canyon Brewery, on my left sat Gil Gonzales, a doctor and communicable disease investigator for the county. We talked and bought each other a round. He and I are Vietnam vets and we swapped a few stories.

Gonzales shoved off to get home in time for dinner with his 10-year-old daughter and 35-year-old wife, which would sound

unremarkable unless you knew that Gonzales admits to being 70.

With time to myself, I thought back to my fi rst exposure to downtown Tucson in June 1971. At that time, downtown was

dying. I was 22 and a Captain in the U.S. Army’s Intelligence Branch. I had been assigned to a course at the Intelligence Training School at Fort Huachuca. Th e school had just been relocated from Fort Holabird near Baltimore in Maryland. Th e move was made to improve security but it also created some training issues.

Two of the courses then taught at the school, counterintelligence and case offi cer training, required students to learn how to follow people on foot and how to load and unload dead drops in metropolitan settings.

Foot surveillance turns out to be an amazing minuet, where the “rabbit” — the

person to be followed — has a team of three agents assigned to trail him or her, one behind, one abreast and one across and parallel to the one behind. Th is creates a box-like formation of four people walking down the sidewalks on either side of a city street with the rabbit at a forward corner.

Now imagine a training class fi elding eight of these “boxes” totaling 32 people practicing foot surveillance from 1 to 4 p.m. on a June day in 1971 downtown Tucson. Th e teams assembled at what was then the Walgreens store — now the University of Arizona’s downtown building — at the southeast corner of Stone Avenue and Pennington Street.

Each team was on the lookout for their rab-bits whose photos they had been given. Often, a rabbit would walk right past the team and, not being recognized, would double back, tap the team leader on the shoulder and say in a sotto voce, “Psst…I’m the rabbit.” And off a gaggle of agents would go.

Th e teams had to practice within the confi nes of those parts of the city with buildings, and this was an issue. Many buildings had been closed or abandoned, so the teams had to jink around a limited number of street corners. But that wasn’t the half of it.

Dead drops — places to hide messages and fi lm — had to be loaded and unloaded and drop status signals, chalked on telephone poles and the walls or corners of buildings. One of the recommended places for dead drops was under the ledges of retail display windows, such as those in the fronts of jewelry stores.

Teams would use magnets and adhesives to affi x small plastic fi lm canisters to the undersides of the ledges. Th e problem was that, as more and more retailers left down-town and boarded up their display windows, there were fewer and fewer candidates for plausible sites.

To sum it up, 40 years ago these teams had a fi rst-hand view of downtown Tucson’s decline. But I think that’s changing, thanks to Tracy and entrepreneurs like him as well as the UA and its Eller College of Management.

In the late 1980s, years after I had left the Army, I was on a business trip to Austin, Texas. It was then in a deep recession caused by a sharp drop in oil prices. I remember walking along Austin’s Congress Avenue and seeing most of the windows on the ground fl oors of offi ce buildings boarded up, just like those I remembered in Tucson.

Ten years later, the plywood was off the windows and Austin’s economy had turned around. I was told that one of the major reasons this happened was the McCombs Business School at the University of Texas at Austin and its work with the city’s economic development people to come up with a business plan.

One of the most important elements was

harnessing the ideas and talents of young entrepreneurial graduates, commercializing intellectual property developed at UT and turning these into the start-ups and ramp-ups that created high-paying jobs to be fi lled by residents and graduates. Th e trick was to keep both good ideas and talent in Austin.

Fortunately, the city already had a developed and growing social scene consist-ing of six blocks along Congress Avenue with cafes, bars, breweries and theaters, most of them with live entertainment and music. Th ey were excellent venues for UT singles, profes-sionals and young-marrieds to mingle and an attractive force for them to remain in the city.

Along the way, the venture capitalist community came to stay. One of Silicon Valley’s premier law fi rms and king makers, Wilson Sonsini Goodrich and Rosatti, set up shop. Austin Ventures contributed to growth with its $3.9 billion. ARCH Ventures, Accent Capital, G-51, Blue Sage and Adams Capital also appeared. Th ere was a strong MIT Club and an Angel Investor group, as well.

But things weren’t always rosy in Austin. Th e dot com crash at the beginning of this century had as spectacular an impact as did the oil crash in the mid-1980s. But the McCombs Business School and Austin economic developers did their thing and the economy rose once more like a phoenix.

As I sat at the new Th under Canyon Brewery, I felt downtown Tucson might also be headed in this direction. Th e Eller College of Management has directly engaged with Tucson. Its new dean, Len Jessup, is the fi rst major player at the UA to have become a board member of the Tucson Metro Chamber. He also has advanced the UA’s programs to license and to commercialize its vast resourc-es of intellectual property.

Leslie Eldenburg, former vice dean at Eller, has performed her own “stealth launch” of the Eller Economic Development Program, which is funded by the JP Morgan Chase Founda-tion. Th e program was pioneered at the University of Washington’s Foster School of Business, and its executives claim that it has added 6,000 jobs to the Seattle-Tacoma area.

Stephen Gilliland, head of Eller’s Depart-ment of Management and Operations, has also quietly launched a growing number of “spot education” programs for Tucson-area executives to improve their business and management skills.

It’s a great new place downtown. Grad students and young professionals will like it, too.

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.

SAM WILLIAMS

SALES


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When is choosing a VoIP phone system a marcom decision?

Last month column about the impor-tance of keeping Internet-related user names and passwords secure, led one reader to bluntly point out I made no explicit point about marketing and communication (marcom). My writing appears in Inside Tucson Business as “Technically Speaking,” but those same pieces (and about three more per month) also appear on my blog (www.netout-comes.com) as “Marketing Bytes.”

With marcom depending so much on technology, the question becomes: “Can we draw a line between marcom and technology issues? Th e line gets blurred in so many ways it can be hard to see. One example of the blur is VoIP (Voice Over Internet Protocal) phone systems.

VoIP has become popular for many reasons. A key appeal is simple economics. To use a multi-featured, traditional land-line, carrier-connected phone system, an organization usually must make a substantial investment in the phone system itself. VoIP systems, on the other hand, are sold as “free” as long as the organization agrees to terms involving monthly pay-ments over one or more years and sepa-rately pays for the Internet bandwidth required to support VoIP. VoIP systems off er other advantages, such as a greater array of features than provided through traditional land-line phone systems.

VoIP systems may also come with some oddball issues, including an organization losing its 411 Directory Assistance listing. Depending on the VoIP vendor and how its system is deployed, the organization using VoIP may not be listed in Directory Assistance.

With Google and countless other online directory resources available, does an organization really need to be listed in Directory Assistance? Here’s one way to get to an answer. Suppose we were to ask each of four generations this question: “Do you use Directory Assistance?”

Gen Y might answer, “Directory what?” (that means “No”).

Gen X might respond, “I’ve heard of it but I don’t have a land line and my mobile company charges $1 per use, so I never use Directory Assistance.”

Baby Boomers would probably say, “Sure. I still use it from time to time.”

Silent Generation members would say, “Of course. I use it whenever I don’t know the phone number.”

You might not agree with these charac-terizations. Or you might have have other issues. Great. Th at just proves the key point: Any discussion about whether a target mar-

ket uses Directory Assistance raises a marcom issue, not a technology issue.

Th e fact is organizations that go with a VoIP system are not always automati-cally listed in directory assis-tance. In fact, dig

into Google search results and you’ll probably fi nd at least one VoIP vendor, we’ll call him “Mr. VoIP,” who says VoIP makes it impossible to have a Directory Assistance listing.

Technically, Mr. VoIP is wrong. An organization can use a VoIP system and appear in Directory Assistance. Th ere’s no space and no need to explain the intrica-cies of how Directory Assistance works here. Th e fact is a capable VoIP vendor can get an organization listed in Directory Assistance and, drum roll, like other technologies, VoIP can raise other marcom issues, including voice quality and the handling of incoming calls.

In short, VoIP has a marcom compo-nent. So does the proper use of user names and passwords in order to prevent a person’s online services from getting hacked. Getting an email account hacked can bring up marcom issues:

1. Customers, referral sources and prospects may get spammed.

2. Email sent and received in confi -dence, if it’s saved to the cloud, is no longer confi dential.

3. Th e person who got hacked has to admit to not taking adequate precautions or to choosing a bad email vendor.

Speaking of admissions, I have to admit here the critic mentioned in my opener had two additional, valid complaints. An apology was required. Th at plus a client’s VoIP problems were probably the source of a headache and some humble pie.

Later the same day, another reader asked our fi rm to change her email address and added to me, “... I so love the work that you do and I don’t want to miss a word. You totally rock.” My headache vanished. She made my day, and my week.

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

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PROFILE

Zemams Ethiopian Cuisine: an owner’s pursuit of happiness By Max EfreinInside Tucson Business

Amanuel Gebremariam casually paces his restaurant, Zemams Ethiopian Cuisine, taking orders, checking up on customers, and bringing out food. Man-ager, cook, waiter, busser, he does it all.

“I want to monitor every-thing,” Gebremariam said.

Gebremariam came to the U.S. as a refugee more than 30 years from from Eritrea, an East African country just north of Ethiopia. After receiving an education fi rst at the University of Maryland to study English as a second language and then the University of Arizona for a business degree, he worked a number of respectable jobs before concluding he wasn’t happy with what he was doing and decided to take a diff erent path: the restaurant business.

“My mother showed me how to cook, and I named the restaurant af-ter my mom,” Gebremariam said.

As with any business, it can be hard to make your business known and es-tablish a solid clientele. However, with a good approach and mind set, Gebre-mariam feels anything is possible.

But above all, it’s none stop job, you fi nish the days work, you season for tomorrow, tomorrow comes, seven days a week.”

Zemams presents a down tempo ethnic environment. Th e walls are plastered with African décor. Th e table layout is reminiscent of a small hometown diner. Faint Ethiopian lounge music sooths the nerves. All of which are characteristics that make this quaint restaurant so unique.

“I’ve been going to Zemams for a couple years now, and I love it,” said Emily Th ompson-Bruder, a dance in-structor. “I fi nd it better than the other Ethiopian place downtown. Th e food is just better and I dig the environment.”

Th e other location Emily referred to is Cafe Desta, an Ethiopian restaurant that opened about two years ago and is slightly

more modern in appearance. Instead of feeling threatened by the new estab-lishment, Gebremariam embraces it.

“I love that restaurant,” Gebremariam exclaimed. “It gave exposure to the African cuisines. See, if Tucson can support 20 Mexican restaurants, seven or 10 Chi-nese, and some other ethnic foods, why not two African? So I have to compete. If he does better than me, I have to try to do better than him — it keeps me on my toes. He’s a good friend of mine too.”

Th e lack of concern may also have to do with Zemams longevity and the countless recognitions it receives on its food, including the Tucson Weekly’s Best of Tucson and the Tucson Zagat Survey.

For nearly 20 years now, Gebre-mariam has managed to keep his busi-

BIZ FACTS

Zemams Ethiopian Cuisine2731 E. Broadwaywww.zemams.com(520) 323-9928Hours: 11-2:30 p.m. and 4:30-9:30 p.m. Tuesdays through Sundays

A customer enters Zemams Ethiopian Cuisine, 2731 E.

Broadway.

Owner Amanuel Gebremariam behind the register at Zemams

Ethiopian Cuisine.

Promoting a strong local economy.

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“In business you have to have good service, good location, and most of all, a good price,” Gebremariam said. “In a restaurant, you have to have consistency. Th ere is no margin of error. If one cus-tomer is sick... you lose every customer.

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ness afl oat and says he has had very little diffi culty maintaining success, even with the recession of the past few years.

“I’m really fortunate, you know, with all the economic turn around, ups and downs, it hasn’t aff ected me, its very consistent,” Gebremariam said.

He attributes much of his suc-cess with having stayed small, local and not overextending himself.

“We know almost all of our customers by name,” Gebremariam said with a chuckle.

“Amanuel’s great,” exclaimed Grant Kadowaki, a videogame designer. “He’s always here working during lunch, so I try to go during that time to say hello.”

After resisting for so many years, Ge-bremariam is fi nally looking to expand.

“We are planning on opening another restaurant around the Fourth Avenue area. I am looking for property to buy. Once I buy that property, I want to do an upscale Ethiopian restaurant,” Gebremariam said.

Th e new restaurant will have a full bar according to Gebremariam, a fea-ture Zemams does not have and instead accommodates by having a bring-your-own-bottle policy and a $1.50 corking fee.

Gebremariam also plans on featur-ing new recipes at the new restaurant, the identity of which he insists be kept secret.

“All recipes are my mom’s, I’m trying to expand them now, since my mom’s perspective was a little bit narrow,” Gebre-mariam laughed out. “Americans like to eat with a fork and knife, so these recipes will be meant to be eaten this way.”

Although Zemams provides custom-ers the opportunity to use knives and forks, the owner and staff recommend eating the traditional Ethiopian style, with your hands. But don’t panic, din-ers are supplied with a hearty amount of traditional injera — sour pancake bread made of a North African cereal grass called teff — which is used an edible utensil.

With only 16 main dishes on Zeman’s menu ranging from $9.25 to $13.75, and a combination platter option in which three dishes can be sampled, diners can try virtu-ally every dish off ered in only a handful of visits.

“We are always busy,” Gebremariam said.

He attributes his success to not only his hard work, but to the opportuni-ties his adopted country provides.

“Coming as a refugee to the United States, it’s a relief, because I don’t think anyone knows unless he or she has been a refugee themselves what to be a refugee is,” Gebremariam explaind. “We come scared, afraid, tortured, everything that could apply to any human being in a nega-tive way. Here you come to this wonderful country that opens its hands, its house, and its heart. I came with a lot of hope, and a lot of happiness, cause the fi rst time I came here, this was the fi rst time I saw people smiling everywhere, in a refugee camp, you don’t see things like that.”


MEDIA

Ad agency vet Nordensson named Pima County communications chief By David Hatfi eldInside Tucson Business

After more than 39 years running his own advertising agencies, Jeff Nordensson start-ed work this week as communications direc-tor for Pima County government. He replaces Sam Negri, who helped start the department in 2011 and retired in September. Negri and most of the other members of the 10-person staff are former news reporters. Nordens-son’s experience is in marketing, public rela-tions and advertising.

Nordensson, whose salary is $102,000 per year, said he became interested in “telling the county’s story” a few years ago when his agency had been contracted to do an annual presentation called the State of the County.

“I remember thinking at the time there are so many fascinating aspects and stories of what Pima County has to off er but there was no organized structure to get those sto-ries out to people who could use them,” Nor-densson said. “Each department did its own thing and they were all in separate silos.”

Nordensson said his son Chris will remain a part of the Nordensson Group advertising agency. Nordensson said he also has permis-sion from the county to continue as the voice of Bank of Tucson in radio commercials, pro-vided bank CEO and President Mike Hannley wants to continue with those commercials.

Nordensson started his ad agency in 1973 when he bought Jeff ers Advertising, which had been founded nine years earlier by Ar-nold Jeff ers, who later became Pima County Assessor. Jeff ers died in September 2001.

“I know it sounds polyannish, but I really feel like I’m fi nally going to put everything I’ve learned over the years to work in one great organization,” Nordensson said.

More names in news Changes at Journal Broadcast Group’s Mix-

FM KMXZ 94.9-FM. Morning show personal-ity Bobby Rich will celebrate his 20th anni-versary this year and then some under a new “multi-year contract” that will keep him has host of the “Bobby Rich Morning Mix” show. In making the announcement, Shaun Holly, operations manager for Journal’s four Tucson radio stations, said Rich “has been the leading force behind Mix-FM’s ratings success since 1993 and is the most visible radio personality in the city.” For his part, Rich said, “I get to continue doing what I love at a radio station I love, in a town I love, with people I love. Also I’m not really qualifi ed to do anything else.” Before coming to Tucson, Rich had worked, often in management positions, at stations in San Diego; Los Angeles; New York; Philadel-phia; Miami, Fla.; and Seattle.

One thing Rich is handing off at Mix-FM is the title of program director which goes to Leslie Lois who has worked at the station since 1999.

At Arizona Lotus Corp.’s alternative rock station KFMA 92.1-FM/101.3-FM, Pete Mc-

Nair, who goes by the on-air name Creepy Pete, has been promoted to music director mid-day on-air personality. He’s been with the station for 10 years and is moving up from night host.

Greg Dunkin, who was operations direc-tor at Journal Broadcast Group’s Tucson radio stations for about a year and a half until July 2006, this month was named operations man-ager and program for a pair of radio stations in Topeka, Kan., owned by Cumulus Media.

New AZ IllustratedFor those wondering why “Arizona Illus-

trated” has been replaced by repeats of “Th e Desert Speaks” since Jan. 2, Arizona Public Media says it has the show in for a major makeover. When it’s unveiled, the show will have a new look and format. On paper, they’ve even shortened the title to “AZ Illus-trated,” though I’m not sure whether they’ll pronounce it that way on the air.

Tony Paniagua, who has been the Mon-day-through-Th ursday anchor since Kim-berly Craft left in 2011 to work for the NPR station in Flagstaff , will continue to have a role in the revamped show. Also, the political round-table on Fridays hosted by Jim Nint-zel of the Tucson Weekly, will continue.

Target date for the return is Jan. 28. Th e show airs at 6:30 p.m. weekdays on KUAT-TV 6 and repeats at 9:30 p.m. on the PBS World channel, which broadcasts on KUAS-TV 27.3.

Radio ratings Th e latest quarterly radio ratings from Ar-

bitron are out with the usual suspects, coun-try KIIM 99.5-FM, adult contemporary Mix-FM KMXZ 94.9-FM and top 40 KRQ 93.7-FM ranking No. 1, 2 and 3, respectively.

Stations that saw audience increases in these ratings, taken Sept. 13 to Dec. 5, are classic hits K-Hit KHYT 107.5-FM, NPR out-let KUAZ 89.1-FM/1550-AM, classical KUAT-FM 90.5-FM/89.7-FM and Spanish La Pre-ciosa KTZR 1450-AM.

Spanish La Caliente KCMT 102.1-FM saw a sharp drop, losing about 18 percent of its share of the market. Th at, coupled with the jump up by La Preciosa will be something to watch in future ratings.

Otherwise most stations held their ground. (See table.)

Celebrate ‘Too Jewish’A fun thing coming up March 2 to cele-

brate 10th anniversary of the “Too Jewish Ra-dio Show with Rabbi Sam Cohon and Friends” will be a live radio variety show at the Fox Tucson Th eatre, 17 W. Congress St., featuring comedian Richard Lewis.

Th e anniversary show will be broadcast live beginning at 7:45 p.m. on KVOI 1030-AM, which airs the show regularly from 9-10 a.m. Sundays.

Tickets for the anniversary show are priced from $32 each on up to $102 for gold circle tickets that will also include a hosted reception with Lewis and other performers of the show including Tucson Mayor Jona-than Rothschild, U.S. Rep. Ron Barber, the Avanim Rock Band, local band Boreas and others. Buy tickets online at www.foxtuc-

sontheatre.org or at the Fox box offi ce. Proceeds from the anniversary show will

go to Jewish Family & Children’s Services of Southern Arizona.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

TUCSON RADIO RATINGSAverage share of listening audience 12 years old and older, Monday-Sunday 6 a.m. - midnight

Ranking Station Format Owner Sept-

Dec

2012

June-

Sept

2012

Sept-

Dec

2011This Last

1 1 KIIM 99.5-FM Country Cumulus 9.0 10.1 9.62 2 Mix-FM KMXZ 94.9-FM Adult

contemporaryJournal 8.2 8.5 7.7

3 3 KRQ 93.7-FM Top 40 hits Clear Channel

6.1 7.6 7.7

4 5 K-Hit KHYT 107.5-FM Classic hits Cumulus 5.5 5.0 4.5

5 7T KUAZ 89.1-FM/1550-AM NPR/jazz Arizona Public Media

5.2 4.3 4.6

6 4 KLPX 96.1-FM Rock Lotus 4.5 5.5 3.7

7T 10 KFMA 92.1-FM/101.3-FM New rock Lotus 4.3 3.7 3.97T 9 KNST 97.1-FM/790-AM * News-talk Clear

Channel4.3 4.1 3.6

9 7T Hot 98.3 KOHT 98.3-FM R&B hits Clear Channel

4.0 4.3 4.2

10 6 La Caliente KCMT 102.1-FM Regional Mexican Lotus 3.6 4.8 4.411 11 The Truth KQTH 104.1-FM News-talk Journal 3.5 3.2 2.812 13 The Groove KTGV 106.3-FM * Rhythmic oldies Journal 3.1 2.6 3.3

13T 15T KUAT-FM 90.5-FM/89.7-FM Classical music Arizona Public Media

3.0 2.1 2.7

13T 12 My 92.9 KMIY 92.9-FM * Hot adult contemporary

Clear Channel

3.0 2.8 3.1

15 15T La Poderosa KZLZ 105.3-FM Regional Mexican KZLZ LLC 2.6 2.1 2.616 14 KTUC 1400-AM Pop standards Cumulus 2.5 2.4 2.517 17 i97-5 KSZR 97.5-FM * Top 40 hits Cumulus 2.2 2.0 1.618 24T La Preciosa KTZR 1450-AM Spanish oldies Clear

Channel2.0 0.5 0.7

19 23 ESPN KFFN 1490-AM/ 104.9-FM

Sports-talk Journal 1.2 0.6 1.3

20 - KEVT 1210-AM Spanish variety One Mart 1.1 < 0.721T 21T KGVY 1080-AM/100.7-FM Oldies/ pop

standardsKGVY LLC 1.0 0.7 0.6

21T 18 The Source KCUB 1290-AM Sports-talk Cumulus 1.0 1.6 0.921T 20 Tejano KXEW 1600-AM Tejano Clear

Channel1.0 1.2 0.6

24 24T The Voice KVOI 1030-AM News-talk Good News 0.7 0.5 0.825 19 KCEE 690-AM Pop standards Good News 0.5 1.4 1.426 27T KFLT 830-AM Christian Family Life 0.4 0.4 0.527 27T KFLT-FM 88.5-FM Inspirational

music Family Life 0.3 0.4 0.2

- 21T Star KWFM 1330-AM * Adult contemporary

Hudson < 0.7 <

Source: Arbitron Inc. Latest survey was conducted Sept. 13-Dec. 5. Previous survey was une 21-Sept. 12. Year ago survey was Sept. 15-Dec. 7, 2011. < - Indicates ratings below minimum for reliability. n/a - Noncommercial or religous station ratings unavailable.* Notes:KMIY was formerly The Mountain KWMT with modern music format until Nov. 18, 2011. KNST began broadcasting on its FM eff ective Nov. 28, 2011. KSZR was formerly branded as Bob-FM with adult contemporary music format until Feb. 3, 2012.KTGV was formerly Mega KGMG with R&B and oldies format until Oct. 17, 2011. KTZR was formerly Funny KWFM with all-comedy format from Jan. 26-Nov. 21, 2011. KWFM was formerly The Jolt KJLL until Jan. 21, 2012. Format changed from talk eff ect. Sept. 30, 2012.

Log on TODAY!www.InsideTucsonBusiness.com


By Patrick McNamaraInside Tucson Business

Modern techniques, coupled with tech-nological innovation, have provided re-searchers and academics the ability to com-pile near-infi nite amounts of data.

But sorting through that data requires an inordinate computing power.

“Scientists seem to want more comput-ing power than exists,” said David Lowen-thal, professor and associate department head at the University of Arizona depart-ment of computer science.

Th at desire for computing power comes at a cost, not just in expensive computer in-frastructure, but in energy.

Lowenthal recently was awarded a $400,000 National Science Foundation grant to research and develop ways to minimize

the power consumption of the next genera-tion of high-output computers, also known as supercomputers or, for those with longer memories, mainframe computers.

Just how much power do these comput-ers consume?

Today’s supercomputers can consume nearly 10 megawatts of power, Lowenthal said. A megawatt is roughly equivalent to amount of energy needed to power 1,000 homes for one hour.

“Th at’s like a reactor,” Lowenthal said, only slightly exaggerating.

As the need for more computing horse-power increases, the amount of power these computers need will increase proportional-ly, if current trends continue.

Take for instance Lowenthal’s charge. Working under goals the U.S. Department

of Energy set, his research aims to fi nd ways to limit power consumption to 20 megawatts.

Th at would be fi ne, he explained, except

Getting more with less: UA researcher works to save power consumption in supercomputers

NEXT GENERATION

that the coming generation of supercom-puters likely will represent an increase in computing force by a factor of 50. In other words, he and his graduate students have to fi nd a way to allow supercomputers 50 times the output with only twice the amount of power that they use today.

“How do we get there?” Lowenthal asked. His idea, in simplifi ed terms, is to design

software that allows the next generation of supercomputers to perform as designed while minimizing their power consump-tion. In eff ect, the software would ration the energy feed to a supercomputer.

“I’m not a hardware person, I don’t build the computer,” he said. “I look at this prob-lem the other way.”

A possible solution to the energy con-sumption issue, which Lowenthal has begun

to explore, would be to divide the available pow-er to the vari-ous parts of a supercomput-er, with some receiving larg-er allocations than others.

Lowenthal said laptop computer de-signers have successfully managed a similar issue. In laptops, pro-cessors run at varying speeds as a means to increasing bat-

tery life and a similar philosophy could be im-plemented on a grander scale.

Th at’s easier said than done, however. Lowenthal said his research likely would run the course of the three-year funding pe-riod or longer.

Th e task also involves working closely with computer engineers to ensure the software packages can be successfully integrated into the increasingly massive supercomputers.

Whereas installing a new software package on a PC can be done with relative ease and only a few minutes inconvenience, Lowenthal said the same isn’t the case on a new-genera-tion supercomputer. Th ese machines, which fi ll entire buildings sometimes, can have tens of thousands of processors, compared to one or two in a home computer.

Th e challenge lies in designing and imple-menting software that can be integrated into a supercomputer that’s essentially an array of hundreds of thousands of machines.

Universities across the country have been building their own supercomputers to handle the research demands of faculty.

Th e University of Arizona also has a high-output computing center, Research Com-puting Data Center.

Its computers hold the equivalent of 6,000 processors and will likely expand as need arises. Th e available storage space is measured in petabytes, or more than a qua-drillion bits of data.

“Any science department does high-out-

put computing,” Lowenthal said. “From a societal point of view, any scientifi c area is aff ected by the ability of supercomputers.”

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.

Patri

ck M

cNam

ara

David Lowenthal at his offi ce on the University of Arizona campus. He seeks to fi nd a way for supercomputers to consume less power.


50% OFF for 2 months

What would happen if the founding father of psychoanalyst Sigmund Freud and novelist and scholar C.S. Lewis were to have had a conversation? How fascinating would it be to eavesdrop on their discussion about God and Christianity, science, family, free-will and even sex? If the idea is intriguing then see the Arizona Th eatre Compa-ny’s Southwest premiere of “Freud’s Last Session.”

Set in 1939 as England enters World War II against Germany, the play imagines a pivotal conversation between Freud and Lewis. Th e play has been an Off -Broadway sensatin for two years.

Th e Arizona Th eatre Company’s presen-tation at the Temple of Music and Art, 330 S. Scott Ave., begins with fi ve preview perfor-mances Saturday and Sunday nights and continuing Tuesday through Th ursday nights next week before opening night on Jan. 25. It runs through Feb. 9.

Buy tickets online at www.arizonathe-atre.org or throughthe box offi ce at (520) 622-2823.

ArtA trio of new exhibits at the Tucson

Museum of Art, 140 N. Main Ave., debut next week. One is titled “Desert Grass-lands” featuring works by 16 artists using a variety of media to interpret the fl ora and fauna of this region. It will be up through July 7. Th e second exhibit is “Feminina: Images of the Feminine from Latin America” focusing on representations of the feminine from both a sacred and the profane perspective over several centuries, as seen in art from Latin America. It will be up through Sept. 14. And the third exhibit is

“Elements in Western Art: Water, Fire, Earth and Air” examining the representa-tion of the elements in western art and how they were used to defi ne how the world sees the West. It will be up through June 14.

Th e museum is open Wednes-days through Sundays, from 10 a.m. to 8 p.m. Th ursdays, noon to 5 p.m. Sundays and 10 a.m. to 5 p.m. the other days of the week.

MusicJazz legends Chick Corea and

Gary Burton perform at 8 p.m. Saturday (Jan. 19) at the Fox Tucson Th eatre, 17 W. Congress St., under the auspices of UApre-sents. Tickets range from $45 to $60

with discounts for students, educators, children, seniors and military. Corea and Burton, who are perhaps best known for the landmark 1972 album “Crystal Silence,” don’t often perform live so this one-night-only event is a rare opportunity.

FilmFilms of note opening this weekend

include the crime drama “Broken City” starring Russell Crowe and Mark Wahl-berg in a story about an extra-marital aff air, a big city mayor and a cop; the horror fi lm “Mama” telling the story of a family trying to raise two girls who had been abandoned in a forest for fi ve years; and the acclaimed French fi lm “Rust and Bone” starring Marion Cotillard as a damaged soul looking for love after a tragic accident.

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

ATC plays out pre-WWII meeting of Freud, Lewis

OUT OF THE OFFICEON THE MENU

Coff ee?Yes, down this aisle to the right.Laundry detergent?Of course, over on that aisle.Paper towels?Sure, straight down the aisle

here on the left.Grass-fed hamburger with

Divina roasted tomatoes, poblano peppers, local goat cheese and sun-dried tomato aoli?

Absolutely. Head for the E. River Bar at the back of the store...and how about a cold draft beer to wash it all down!

Huh?A culinary experience, in a

relaxed bar atmosphere, in a grocery store? Sure thing, says Executive Chef Nathan Hirsch, a graduate of the Culinary Institute of America, who oversees the kitchen operation at the new Whole Foods Market that opened Wednesday at 5555. E. River Road.

“We encourage our customers to sit down, relax, and experience the best organic and natural foods available,” he said, as he described this new “dining destination.”

Tucked at the back of the 36,000 square-foot store is the E. River Bar — and with large-screen TVs, bar stools, pub tables, 24 beers on tap, a wide selection of wines by the glass, and a pub-style menu that off ers choices for a late breakfast, lunch or dinner, you may forget you actually went to the store to go grocery shopping.

Hirsch has prepared the E. River Bar menu to satisfy a range of palettes, from the aforementioned grass-fed burger to

hand-crafted pizzas, custom-made sandwiches, house-made chips and dips, soups and salads. His in-house smoker adds a woodsy touch to proteins on the

“smokehouse” menu, and a taqueria features tacos, burritos and quesadillas.

Arizona beers occupy nine of the E. River Bar’s 24 beer taps, with one from Tucson’s Dragoon Brewing Company crafted exclusively for Whole Foods, aptly named the “E. River.”

If you can’t fi nd what you like on tap, there’s a 47-foot-long “beer wall” of suds from around the world. All of the draft beers are also available to take home in

half-gallon “growlers.”Wines are served by the glass at the E.

River Bar, or you can purchase a bottle from the store shelf and a bartender will uncork it for you and your shopping companions to enjoy.

Th e next time you head for the market for a week’s provisions, set aside some time to enjoy the root beer braised beef barba-coa with green chili polenta and chipotle crema, alongside a glass of Arizona craft beer. Now that’s shopping.

Th e E. River Bar at Whole Foods Market is open daily from 11 a.m. to 9 p.m., with last call at 8:30 p.m. After last call, you can fi nish your grocery shopping. Don’t forget the paper towels.

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.

A culinary experience and a‘beer wall’ at new Whole Foods

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}Economidis Caldwell Hanshaw & Villamana law fi rm in Tucson, and worked nine years at Fennemore Craig in Tucson and Musick Peeler & Garrett in Los Angeles. He has a bachelor of arts degree in international studies from Johns Hopkins University and a law degree from the University of California Los Angeles School of Law.

Bob Schwartz, formerly of the law fi rm of Russo, Russo & Slania, P.C., has been named Chief Executive Offi cer of Southern

NEW HIRES

Former Congressman Jim Kolbe has joined the Arizona-based federal government relations fi rm of Capitol Strategies, LLC to provide strategic advice and counsel focused on Arizona public and private sector clients. Jim Kolbe served 22 years in the U.S. Congress and has been involved in many issues important to Arizona, including water, land, mineral resources, border issues, trade and Mexico relations. He held important positions in the Congress, including serving for 20 years on the Appropriations Committee, with 10 of those years as Subcommittee Chairman, and was the House leader for passage

of the North American Free Trade Agreement (NAFTA). Since leaving Congress, Kolbe has served on the U.S. Trade Representative’s Advisory Committee on Trade Policy Negotiations, as senior advisor to McLarty Associates, a strategic consulting fi rm, and on the U.S. Secretary of State’s prestigious Foreign Policy Review Board.

The Pima Community College Governing Board unanimously approved the hiring of attorney Jeffrey Silvyn as the college’s general counsel. Silvyn has been general counsel at the Morris K. Udall and Stewart L. Udall Foundation in Tucson since 2008. Silvyn also has seven years’ experience at the Waterfall

Arizona Land Trust, Inc. (SALT). In addition, Schwartz will serve as in-house legal counsel of SALT’s sister company, Family Housing

Resources, Inc. (FHR). Both SALT and FHR are non-profi t supporting organizations of the Industrial Development Authority of the County of Pima. SALT operates as a land bank and FHR is a leader in affordable housing in Southern Arizona.

APPOINTMENTS

Tiana Ronstadt has been appointed to

BOB SCHWARTZ TIANA RONSTADT MICHELLE HUNTER

the Woodbury Financial Services President’s Advisory Council. Membership in this organization is offered to a select group of registered representatives who, through their infl uential partnership with Woodbury Financial senior leaders, play a key role in transforming the future of the industry-leading broker-dealer. Ronstadt has more than 20 years experience in the fi nancial planning industry. She is the founder of Power Women Investing, a comprehensive fi nancial services fi rm whose mission is to empower individuals to gain fi nancial independence.

AWARDS

Michelle Hunterhas been named Vantage West Credit Union’s

employee of the year. As a loan center

operations coordinator, Hunter is responsible for the implementation of a new loan origination platform that has streamlined the lending process. Hunter has been with Vantage West for 14 years.

Carlos Raygoza also was named a Vantage West Credit Union employee of the year for his work as a senior fi nancial representative. Raygoza provides leadership at the Rita Ranch branch. He recently earned a master’s of business administration from the University of Phoenix.

JEFFERY SILVYN

GET ON THE LISTNext up: Colleges and universities, Specialty and training schools, Child care providers

Th e 2013 Book of Lists will be published Jan. 25. Inside Tucson Business is now gath-ering data for the 2014 edition.

Upcoming lists are: • Feb. 1: Public school districts, Private

elementary schools, Private secondary schools, Charter schools

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

• Feb. 15: Commercial real estate bro-kers, Commercial building contractors, Commercial real estate managers

• Feb. 22: Commercial photographers and Video production companies

• March 1: Event planners, Convention and meeting facilities, Caterers

If your business has been on a previous list in one of these categories, look for an email from Jeanne Bennett, List researcher for Inside Tucson Business, with details on how to update your profi le.

If you would like to add your business to one of these lists, go to www.InsideTucson-Business.com and click the Book of Lists tab at the top of the page to create a profi le.

Th e Book of Lists is a year-round reference for thousands of businesses and individuals.

GOVERNMENTPima earns high marks on transparency review

Pima County recently received an A- on a government transparency measurement

conducted by Sunshine Review, a nonprofi t dedicated to government transparency.

Th e only county to get higher marks for transparency was Pinal County, which got an A+, according to the Sunshine Review.

“We are pleased to be recognized for our ef-forts to provide as much information as possible to our constituents,” Pima County Administra-tor Chuck Huckelberry said in a news release. “Open government builds trust, reduces con-fusion and ensures that citizens have the tools they need to fully participate in democracy.”

La Paz County earned the lowest marks, receiving an F grade. Navajo County had a D, according to the survey.

Graham and Greenlee counties also re-ceived low marks on the review, both earn-ing a C- grades.

Apache, Cochise, Coconino and Santa Cruz counties got C grades.

Maricopa, Mohave and Yavapai counties were given B grades. Gila and Yuma coun-ties got B- grades.

Th e Sunshine Review measures the “af-fi rmative disclosure” of information on gov-ernment websites.

Th e scores refl ect availability of public in-formation on websites in categories like bud-gets, public meetings, elected offi cials, admin-istrative offi cials, permits, audits, contracts, lobbying, public records and local taxes.

Th e group gave the City of Tucson an A- on its most recent analysis. Sunshine Re-view gave the state’s website a C.

For more, visit the Sunshine Review website at http://sunshinereview.org/core/transparency.

City of Tucson to meet on El Rio Golf Course

City offi cials plan to hold a public meet-ing covering the recent actions by mayor

BRIEFSand council relating to Tucson City Golf.

Th e meeting is scheduled for Wednesday (Jan. 16) at 5:30 p.m. at the El Rio Neighbor-hood Center, Multipurpose Room, 1390 W. Speedway.

Offi cials will provide background on unmet infrastructure needs for Joaquin Murrieta Park and El Rio Golf Course, and detail opportunities for park planning and improvement. Th is is the fi rst meeting of a master-planning process for the area.

City golf has been under scrutiny be-cause it has lost more than $7.5 million over the past several years. Th e diff erence has been made up from other city funds.

City leaders have considered closing El Rio and Fred Enke golf courses, because the two are the city’s worst performing.

For more information, call (520) 791-4040 or e-mail [email protected].

TECHNOLOGYTech Council plans technology recycling events

Th e Arizona Technology Council Foun-dation, Data Doctors and Westech Recyclers plan to hold a technology recycling event.

Th ose wishing to address the issue of electronic waste can safely dispose of com-puters, manufacturing and other electronic equipment at drop-off locations.

In Tucson, drop-off locations are sched-uled for Th ursday (Jan. 24) 7 a.m. to 6 p.m. and Friday (Jan. 25) 7 a.m. to 2 p.m. at Texas Instruments in the Williams Centre, 5411 S. Williams Blvd.

Th e electronic equipment and com-ponents acceptable for drop-off include personal computers, computer peripher-als, networking equipment, main frames,

servers, point-of-sale equipment, printers, audio/visual and telecom devices, surplus metals, wire, cable and power strips.

Miscellaneous electronic items such as test or lab equipment are also acceptable.

All donated equipment will be handled through the Arizona Technology Council Foundation’s TechTerra Program in part-nership with Westech Recyclers.

As part of that program, a portion of the equipment is donated statewide to support Arizona educational programs.

MILITARYRaytheon wins $12.3M Air Force contract

Th e U.S. Air Force awarded Raytheon Company a $12.3 million contract to begin production of High-Speed Anti-Radiation Missile (HARM) Control Section Modifi ca-tion (HCSM) upgrade units.

Th e modifi cation adds a GPS receiver and an improved inertial measurement unit for precision navigation to the existing HARM.

HCSM also features a digital fl ight com-puter that merges targeting solutions from navigation and seeker systems.

Raytheon is scheduled to begin modi-fi cation of existing HARMs early this year with delivery of HCSM units beginning in the fourth quarter of 2013.

Raytheon has teamed with Honeywell, Rockwell Collins and others for the HCSM program.


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

Company Name Symbol Jan. 16 Jan. 9 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.04 0.03 0.01 0.02 0.12CDEX Inc CEXIQ.OB 0.08 0.11 -0.03 0.01 0.80Providence Service Corp PRSC 17.17 16.94 0.23 9.56 17.94UniSource Energy Corp (Tucson Electric Power) UNS 43.85 43.50 0.35 35.20 44.15

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 8.85 9.08 -0.23 7.97 10.92AMR Corp (American Airlines) AAMRQ 1.56 1.29 0.27 0.36 1.66Augusta Resource Corp (Rosemont Mine) AZC 2.50 2.62 -0.12 1.48 3.65Bank Of America Corp BAC 11.57 11.43 0.14 6.46 12.20Bank of Montreal (M&I Bank) BMO 63.30 62.96 0.34 50.95 63.16BBVA Compass BBVA 10.31 9.97 0.34 5.30 9.98Berkshire Hathaway (Geico, Long Cos) BRK-B* 95.02 93.32 1.70 77.83 95.48Best Buy Co Inc BBY 14.63 11.59 3.04 11.20 27.95BOK Financial Corp (Bank of Arizona) BOKF 55.97 55.59 0.38 50.89 60.00Bombardier Inc* (Bombardier Aerospace) BBDB 3.99 3.90 0.09 2.97 4.93CB Richard Ellis Group CBG 20.59 20.57 0.02 14.97 21.16Citigroup Inc C 42.50 42.04 0.46 24.61 43.25Comcast Corp CMCSA 39.17 38.42 0.75 25.31 39.22Community Health Sys (Northwest Med Cntrs) CYH 35.01 32.84 2.17 16.37 35.35Computer Sciences Corp CSC 41.67 41.09 0.58 22.19 42.30Convergys Corp CVG 16.91 17.03 -0.12 12.13 17.50Costco Wholesale Corp COST 101.15 101.23 -0.08 80.59 105.97CenturyLink (Qwest Communications) CTL 39.60 39.83 -0.23 36.50 43.43Cvs/Caremark (CVS pharmacy) CVS 51.91 50.28 1.63 41.48 51.94Delta Air Lines DAL 13.65 13.11 0.54 8.42 13.74Dillard Department Stores DDS 81.01 80.06 0.95 43.70 89.98Dover Corp (Sargent Controls & Aerospace) DOV 66.68 67.23 -0.55 50.27 67.92DR Horton Inc DHI 20.97 21.15 -0.18 13.45 22.79Freeport-McMoRan (Phelps Dodge) FCX 34.33 35.22 -0.89 30.54 48.96Granite Construction Inc GVA 34.39 34.56 -0.17 21.38 34.92Home Depot Inc HD 63.76 63.17 0.59 43.70 65.92Honeywell Intl Inc HON 66.55 66.54 0.01 52.21 66.92IBM IBM 192.26 192.32 -0.06 179.50 211.79Iron Mountain IRM 33.46 32.51 0.95 27.10 37.70Intuit Inc INTU 63.13 62.16 0.97 53.38 63.39Journal Communications (KGUN 9, KMXZ) JRN 5.13 5.21 -0.08 3.94 5.85JP Morgan Chase & Co JPM 46.45 45.47 0.98 30.83 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 36.66 37.96 -1.30 27.96 38.62KB Home KBH 16.14 16.48 -0.34 6.46 17.30Kohls Corp KSS 42.75 41.95 0.80 41.35 55.25Kroger Co (Fry's Food Stores) KR 26.14 25.55 0.59 20.98 27.11Lee Enterprises (Arizona Daily Star) LEE 1.24 1.17 0.07 0.75 1.81Lennar Corporation LEN 40.61 41.71 -1.10 21.33 42.00Lowe's Cos (Lowe's Home Improvement) LOW 35.83 34.88 0.95 24.76 36.47Loews Corp (Ventana Canyon Resort) L 42.44 42.11 0.33 37.02 43.36Macerich Co (Westcor, La Encantada) MAC 58.18 58.79 -0.61 52.31 62.83Macy's Inc M 37.94 36.69 1.25 32.31 42.17Marriott Intl Inc MAR 38.76 38.90 -0.14 33.55 41.84Meritage Homes Corp MTH 41.91 42.12 -0.21 23.41 43.02Northern Trust Corp NTRS 50.65 52.15 -1.50 40.64 53.50Northrop Grumman Corp NOC 66.95 67.04 -0.09 56.59 71.25Penney, J.C. JCP 18.72 18.80 -0.08 15.69 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 19.35 19.49 -0.14 7.29 19.80Raytheon Co (Raytheon Missile Systems) RTN 57.71 58.21 -0.50 47.50 59.34Roche Holdings AG (Ventana Medical Systems) RHHBY 53.05 52.32 0.73 38.63 53.79Safeway Inc SWY 17.64 17.40 0.24 14.73 23.16Sanofi -Aventis SA SNY 48.30 48.07 0.23 33.03 49.28Sears Holdings (Sears, Kmart, Customer Care) SHLD 45.00 40.77 4.23 36.81 85.90SkyWest Inc SKYW 13.57 13.63 -0.06 6.25 14.32Southwest Airlines Co LUV 11.20 11.00 0.20 7.76 11.27Southwest Gas Corp SWX 42.88 42.41 0.47 39.01 46.08Stantec Inc STN 41.33 42.18 -0.85 25.77 42.55Target Corp TGT 61.22 60.18 1.04 48.74 65.80TeleTech Holdings Inc TTEC 18.34 18.11 0.23 14.04 18.48Texas Instruments Inc TXN 32.37 32.00 0.37 26.06 34.24Time Warner Inc (AOL) TWX 49.00 49.63 -0.63 33.62 50.28Ual Corp (United Airlines) UAL 26.02 25.64 0.38 17.45 26.11Union Pacifi c Corp UNP 131.11 130.89 0.22 104.08 132.09Apollo Group Inc (University of Phoenix) APOL 20.20 19.32 0.88 18.36 57.46US Airways Group Inc LCC 14.40 15.13 -0.73 5.81 15.50US Bancorp (US Bank) USB 33.18 33.27 -0.09 27.30 35.46Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 69.17 68.57 0.60 57.18 77.60Walgreen Co WAG 39.55 38.45 1.10 28.53 39.57Wells Fargo & Co WFC 35.16 34.71 0.45 28.77 36.60Western Alliance Bancorp (Alliance Bank) WAL 11.25 11.44 -0.19 7.14 11.64Zions Bancorp (National Bank of Arizona) ZION 22.25 21.85 0.40 16.40 22.81Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 53.92 54.06 -0.14 47.00 55.20Walgreen Co WAG 35.50 34.19 1.31 21.39 40.69Wells Fargo & Co WFC 27.66 27.33 0.33 7.80 31.53Western Alliance Bancorp (Alliance Bank) WAL 5.65 4.82 0.83 2.99 9.22Zions Bancorp (National Bank of Arizona) ZION 18.67 18.05 0.62 5.90 20.97Data Source: Dow Jones Market Watch

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

FINANCEYOUR MONEY

‘Cliff ’ averted, but what does it really mean?

Th e 112th Congress was the least productive Congress in history — even less productive than the 80th Congress, which President Harry S. Truman called the “Do-Nothing Congress.” When it ended on Jan. 2, 2013, the 112th Congress had 228 bills make it into law while the 80th Congress got 906 bills into law.

(Notwithstanding Truman’s line, the previous low since the U.S. House Clerk’s offi ce started keeping track was set by the 104th Congress, which passed 333 bills into law in 1995 and 1996.)

As a fi nal act, after technically going over the fi sal cliff , the 112th Congress managed to pass the American Taxpayer Relief Act of 2012. It stopped some of the measures from taking eff ect that would have had a severe negative impact on the U.S. economy, called the fi scal cliff .

Th e Congressional Budget Offi ce projects the legislation will add $4 trillion to the federal defi cit over the next 10 years com-pared to what would have happened had the tax cuts enacted during the Geroge W. Bush administation been allowed to expire.

Th e act also sets up what is likely to be an even more-heated fi ght in late March when the Treasury Department must come to Congress to seek an increase in the government’s borrowing limit.

Here are some of the key provisions of what got passed at the last minute:

• Tax rates will be allowed to rise to a maximum rate of 39.6 percent on incomes of more than $400,000 per year for individu-als and $450,000 per year for households.

• Th e tax on estates will rise to a maximum of 40 percent, with a permanent exemption of the fi rst $5 million, indexed for infl ation.

• Tax rates on long-term capital gains and dividends are pemanently set at 20 percent for individuals earning more than $400,000 per year and households earning more than $450,000.

• Tax rates on long-term capital gains and dividends are permanently set at a maximum 15 percent for individuals earning less than $400,000 or households earning less than $450,000.

• Itemized deductions and personal exemptions will be phased out for those making more than $250,000 annually or $300,000 fi ling jointly.

• Th e 2 percent temporary decrease in FICA payroll taxes relief was allowed to expire. Th is has a disproportionate impact on those making less than $113,700 (the FICA limit in 2013) and is expected to remove $125 billion from consumer income nationwide.

• Th e tuition tax credit and child and dependent care tax credits were extended for fi ve years.

• Rollovers of 401(k) funds to a Roth IRA will be allowed for those still actively partici-pating in a 401(k) plan. Th ink of this as an “in-service” distribution. Remember, a conversion to a Roth IRA is taxable

although future earnings will be tax-free and it’s not subject to the required mini-mum distributions at age 70½.

• Alternative Minimum Tax exemption amounts will be indexed to infl ation starting at $50,600 for individuals and 78,750 for joint fi lers for the 2012 tax year. Th is impacts 32 million Americans who may have been subjected to the tax.

• Postpones for two months $109 billion in spending cuts known as sequestration.

• Extends unemployment insurance for 2 million long-term unemployed Ameri-cans (providing approximately $60 billion).

• Extends the 2008 Farm Bill through Sept. 30, which will keep the price of milk from potentially doubling,

• Prevents a 27 percent reduction in pay-ments to doctors and other health care providers treating patients on Medicare.

• State and local sales tax deductions, the child tax credit of $1,000, adoption/credit assistance, child and dependent care credit, employer-provided child care credit, American Opportunity Tax Credit deduc-tion for qualifi ed tuition and related expenses, student loan interest deduction, teachers classroom expense deduction, mortgage insurance premiums and IRA distributions to charity are among deduc-tions and credits that were either extended temporarily or permanently.

Th e American Taxpayer Relief Act will reduce some of the drama in Washington, D.C., by eliminating the need to renew tax rates every year. However, now that Congress has experienced its biggest takeover of the public consciousness, expect to see even more partisan bickering, especially when it comes to the debate over whether to raise the federal debt ceiling from its already record-setting $16.4 trillion or shut down government.

Considering the American Taxpayer Relief Act has a 41-1 ratio of tax hikes to spending cuts, it looks as if defi cits will continue to soar.

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


INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

Based on the year-end data for 2012, all signs indicate that Southern Arizona’s hous-ing market is in a bona fi de, sustainable re-covery. After being hammered for six years by the housing collapse and Great Reces-sion, real estate is back on track to regain jobs, increase home ownership and overall, strengthen the local economy.

Over the past 12 months, all the positive trends that gained traction will drift into 2013:

Median sales price: From December 2011 to December 2012, the median sales price increased 23 percent. Sold homes moved up in price from $120,000 to $147,500, a gain of $27,500.

Average sales price: Year over year, this metric is now 13 percent higher. Average sales prices for sold homes increased from about $161,500 to $183,000, a gain of $21,500.

Units sold: During 2012, the number of homes sold was the most since 2006 when there were 15,710 closings. Last year, 13,448 homes sold compared to 12,791 units in 2011. Th at was an increase of 657 sales, or 5 percent. During the Great Recession, the low point of sales was 10,616 in 2008.

Market value: Th e market value of all homes sold last year was $2.36 billion. Th at was $260 million more compared to $2.1 billion in sales in 2011. Prior to the market’s collapse, the peak was $4.61 billion in 2005.

Listings: Listings are 9 percent lower, having fallen from 4,911 to 4,449 over the past 12 months. Th at is net decrease of 462 homes in inventory. During the market’s darkest days, inventory peaked at 10,387

listings in April 2007 before ending the year at 8,708 homes.

Foreclosures: Notices of trustees’ sales, the fi rst step in the foreclosure process, trended down for the third straight year in 2012 since peaking in 2009 at 12,184 notices. Last year, 9,287 trustees’ sale notices were fi led, a dip of just 146 notices compared to 2011.

New home permits: A six-year slide in new home construction ended in 2012. Af-ter free-falling from a peak of near 12,000 permits, builders notched a solid gain last year. For the fi rst time since 2009, over 2,000 permits were pulled. Last year, 2,040 per-

Housing market has made a bona fi de recovery

THE PULSE: TUCSON REAL ESTATE

1/7/2013 12/31/2012

Median Price $150,000 $141,000Active Listings 5,189 5,023New Listings 503 363Pending Sales 396 233Homes Closed 159 140Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 3.38% 3.625%APR 3.50% 3.375%APR 4.95% 4.95% 3.38%

15 YEAR 2.88% 3.125%APR 2.88% 3.125% APR 4.22% 4.22% 2.75%

5/1 ARM 2.63% 2.875%APR 2.63% 2.875% 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.

1/8/2013

MONTHLY BUILDING PERMITS: DEC. 20122012 2011 2010 2009

Pima County 29 26 46 76

Marana 48 46 18 12

Tucson 18 16 12 32

Sahuarita 12 17 15 24

So. Pinal 5 10 10 9

Oro Valley 25 3 3 5

Total 137 118 104 158

Source: Bright Future Real Estate Research

YEARTODATE BUILDING PERMITS: DEC. 20122012 2011 2010 2009

Pima County 572 499 683 777

Marana 526 328 341 191

Tucson 330 218 314 368

Sahuarita 270 186 309 516

So. Pinal 175 164 172 168

Oro Valley 167 43 46 57

Total 2,040 1,438 1,865 2,077

Source: Bright Future Real Estate Research

mits were issued compared to 1,438 in 2011 and 1,865 in 2010.

Although stronger fundamentals are in place for sustainable improvements in 2013, stricter lending guidelines will hamper the ability of some potential buyers to move into home ownership. On January 10, the federal government’s new Consumer Finan-cial Protection Bureau set new guidelines for banks that issue home loans.

Th e tighter rules will force banks and lenders to verify a potential borrower’s in-come, their debt obligations and their em-ployment status. Regulators hope to squash loose-lending practices based on falsifi ed loan documents than enabled people to buy homes they couldn’t aff ord. Th ose actions a few years ago pushed the nation’s economy into recession.

Th e year-end statistics are from the Tucson Association of Realtors Multiple Listing Ser-vice and Bright Future Real Estate Research.

First increase since 2004For the fi rst time since 2004, the number

of residential building permits increased year-over-year in 2012. Th e improvement

stopped a six-year slide when 11,783 permits were issued in 2005 across Southern Arizona.

“We have now recovered most of the lost ground since 2009 and expect continued improvement. While all municipalities did see an increase in permit volume, the lion’s share of demand went to the northwest,” said housing analyst Ginger Kneup, owner of Bright Future Real Estate Research.

In 2012, builders pulled 2,040 new home permits, a 30 percent increase over the 1,438 permits in 2011 (see table). Since the housing boom peak of 2005, construction activity had been in a free fall until last year. Many signs of stability have now returned to the market.

An average 170 permits were issued per month in 2012 compared to 120 in 2011.

For the year, there were 1,506 new home closings across the market, an improvement of 214 over 2011. Th at level of activity how-ever, was lower than anticipated.

“Th ere used to be a push by the major builders to close by year end. However, some now operate under a fi scal year that does not coincide with the calendar year, which contributes to the change in year-end trends,” Kneup said.

During 2012, new-built home pricing metrics improved substantially. Both the median and average price levels increased about 15 percent. Th e median price fi nished 2012 at $240,265, a gain of $31,765 in a year. Th e average sales price was $262,632 last month, an increase of $34,609 over 2011.

“Underlying these increases is strong de-mand in the $250,000 to $400,000 price range in the communities along the Tanger-ine Road Corridor,” said Kneup.

Sales and leases• Youth On Th eir Own purchased a

4,800-square-foot two-story offi ce building at 1660 N. Alvernon Way for $597,500 from P&J Enterprises LLC, represented by Bruce Suppes and Ian Stuart of CBRE. Th e tenant was represented by Mark Irvin of Mark Irvin Commercial Real Estate.

• Wilson, Wilson & Wilson purchased the 18-unit El Ranchito Sereno Apartments at 3800 E. Fourth Street for $500,000 from El Ranchito Sereno LLC, represented by Mike Chapman of CBRE. Th e buyer was represented by Glenn Bancroft of Bancroft & Associates.

• RMP Catalina & Tanque Verde LLCpurchased 81,099 square feet of land for $424,000 on the southwest corner of Tanque Verde Road and Catalina Highway from Chi-vas Partners LLC, Attessa ENT LLC, and the Gabriel Family 1993 Revocable Trust, rep-resented by Craig Finfrock, Commercial Re-tail Advisors. Th e buyer was represented by Britt Sanchez of Rand Enterprises.

E-mail sales and leases and other real estate

news items for this column to ryohem@azbiz.

com. Inside Real Estate & Construction

appears weekly.


“I wake up every morning at nine and grab for the morning paper. Th en I look at the obituary page. If my name is not on it, I get up.” Benjamin Franklin was supposed to have said that. Over the years, I’ve heard others try to make jokes in a similar vein.

I was always too busy to relate to such things. Much less, see the humor in them. Now I’m among those who can relate. It happens fast.

As someone who has worked in Tucson media since 1972, I’ve had the privilege of meeting some people who’ve left some pretty impressive marks. Th ey don’t always get the respect I feel they deserve. Th at’s the way it is these days. Th ere’s little institutional memory in media.

But I believe these people do have important things to say. One of those guys was Earl Wettstein. He was a principal in his own advertising agency for 31 years until he retired in 1995. He died suddenly Jan. 9 at the age of 81.

He had written some opinion columns for Inside Tucson Business and was contem-plating a piece about how he felt talented local creative minds were being passed over by Tucson-based entities. What had him bothered was the Metropolitan Tucson Convention and Visitors Bureau had picked a Kansas City agency for its Visit Tucson branding change this year.

Th e MTCVB and Tuc-son tourism held a particu-lar spot in Wettstein’s heart because he was the guy who developed the “I’d Rather Be in Tucson” cam-paign with a smiling sun.

It even had its own theme song. It worked, until the brain trust at the MTCVB decided in the early 1980s to change

campaigns to “Resort to the Possibilities,” somehow believing that because Tucson now had resorts — just like lots of other places — that was something marketable.

It wasn’t and that campaign was short-lived.As it turned out, Wettstein decided the Kansas City agency was

one of the best when it comes to tourism branding so he was OK this time. Especially since it was going to be a one-off project. But he was going to keep his eye on other entities.

Besides, the big thing on Wettstein’s mind was a showing of his oil paintings coming up Jan. 27 through Feb. 8 at DeGrazia Gallery in the Sun, 6300 N. Swan Road. He and Inside Tucson Business reporter Roger Yohem had met for coff ee just the day before he died.

Wettstein was excited for the exhibition, which I under-stand is still going to happen.

In the meantime, the loss of Wettstein is one more loss of a creative mind.

Contact David Hatfield at [email protected] or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Tucson loses creativemind of Earl Wettstein

EDITORIAL

Looking at streetcar wrongA radio talk show host and his guest were talking on

air the other day about the boondoggle they saw in Sun Link, the $196.8 million modern streetcar line under construction that will travel a 3.9 mile route from the University of Arizona Medical Center past the UA campus, through the Main Gate and Fourth Avenue retail areas into downtown Tucson and ending up on the west side of Interstate 10 and the Santa Cruz River.

“It goes from nowhere to nowhere,” the guest on the radio show said.

“Yes, nobody’s going to ride it,” the host chimed in.Th ey’re looking at it all wrong. Yes, it is part of the 20-year, $2.1 billion Regional

Transportation Plan that voters approved in May 2006, which included$75 million of funding. And the U.S. Department of Transportation came up with a $63 million grant.

So with so much “transportation” funding, it’s understandable that anyone would think of the streetcar as a transportation solution.

We believed that, too, at one point. But we’ve come to some realizations about the streetcar.

What Sun Link is not:• Like any other light rail system. Offi cials have

insisted on calling it a “modern streetcar” — not only to diff erentiate it from old-fashioned streetcars most cities gave up on long ago but also to not compare it to other light rail systems.

• An effi cient mode of mass transportation. Moving people effi ciently has never been a forte of transporta-tion offi cials in Tucson. Instead of freeways we have a patchwork of diff erent modes of transportation, none of which works well. Heck, we even have at least fi ve diff erent ways to make a left turn — leading, lagging, protected, unprotected and, soon, Michigan.

• Something most readers of Inside Tucson Business will use on a regular basis. People who commute to

work will not be heavy users of Sun Link. It might come in handy for a night out. Come into the downtown-UA area park your car in one place. Or better yet, take a cab so as not to mix drinking and driving and have access to a whole area for entertainment.

What Sun Link is:• A link that will help facilitate the UA’s plans to get

student enrollment up to 50,000 by the end of this decade.

• Something students will ride. Students don’t want to put up with the hassles of commuting to and from campus in a car. Th at’s why large student housing complexes not near campus provide transportation. Students will also use Sun Link when going out at night. (It will be critically important for Sun Link to run well into the night and early-morning hours.)

• An economic boost. Th e area around the streetcar line is already enjoying the strongest economic revival in the Tucson region.

Th ere are reasons for concern. City Councilman Steve Kozachik has already raised

questions about the amount of subsidies that will be needed to keep Sun Link running. Th e company manufacturing the streetcars is behind schedule and deliveries may be delayed.

And just wait until there’s an accident.Urban rail systems are notoriously dangerous.

Designers try to keep rail lines separate from other traffi c but Tucson’s system will run on city streets mixed with vehicular traffi c which only increases the statistical odds of an accident. It will happen.

But really, we have to stop thinking of Sun Link as a means of effi cient transportation like a major roadway or freeway or a subway or any other transit system. Let’s just consider it an amenity like Jácome Plaza is next to the Joel D. Valdez Main Library downtown or the 12-foot orange griffi n on Scott Avenue.

Earl Wettstein, second from right, with, from left Howard Weiss, Rich Moret and Jeff Nordensson: four of the Tucson market’s best advertis-ing minds on the cover of the Feb-ruary 1987 issue of the Southern Arizona Home Builders Association Builder magazine.

Balfo

ur W

alke

r


OPINIONGUEST OPINION

‘60 Minutes’ gullible in saying newspapers are dead In the late 1990s, I left the newspaper

world for a few years to be director of communications for the United Methodist Church in my part of the United States. I had a staff that created publications, online content, PR material and a newspaper. Some of the most interesting aspects of my job came under the heading of “crisis communication.”

As crisis communication director, I prepared the organization for emergencies we hoped we’d never see. Several thousand professionals made up the clergy and staff s of these congregations and it was my job to be sure they were ready in the event of a “media event.” I was quite adept at getting TV reporters to report just about anything. Newspapers weren’t as quick — you might say “gullible” — to accept everything as the truth, so I generally used television to get information out to the masses.

Th is meant I would create text that ministers and others were to use if called by a member of the media during a crisis. Th ey were always instructed, if the reporter wanted more information than I had provided, to contact me directly.

Understanding this will come in handy as you read further.

I was having dinner with a friend Jan. 6 when I got a text that read, “Are you watching 60 Minutes?” “Th ey’re saying the newspaper industry is dead. I thought you’d want to know.”

Within minutes I got an email. “Did you

see 60 Minutes? It’s a story about Th e Times-Picayune. Th ey’re saying newspapers are dead.”

Th e evening continued with more texts, emails and calls.

I found the 12-minute clip from “60 Minutes

online. I watched it. Th en I watched it again. Th en I watched it and took notes. In less than 11 seconds, Morley Safer said, referring to newspapers, “virtually an entire industry is in free-fall.”

Th e story was about the New Orleans Times-Picayune’s move from publishing daily to three days a week.

Steve Newhouse, chairman of Advance Publications Inc., owner of the Times-Pica-yune, declined to be interviewed by “60 Minutes.” Th at job fell to Jim Amoss, long-time editor.

Safer’s fi rst question to Amoss seemed simple enough. “Did you agree with the decision to start publishing three days a week?”

I’ve listened to the interview four times as I write this and for the life of me, I never head Amoss answer the question. He gave what sounded like a “packaged” response, the kind I might have written as a crisis communication director.

It reminded me of my 13-year-old who received an iPod Touch this past Christ-mas. He lost it. When I asked where it was he told me about the possible places an iPod could be, without coming out and telling me he’d lost it.

I felt for Amoss. I wanted him to tell us what he really thought, one way or the other. All I got from listening to his inter-view was that the newspaper industry was grappling with options. Safer equated that to surgery where all the limbs are ampu-tated and replaced by artifi cial limbs.

In an open letter to Advance Publica-tions, some high profi le citizens of New Orleans wrote “Th e Newhouses are losing the trust of the community.”

Seeing an opportunity to fi ll a vacuum, Th e Advocate 80 miles away in Baton Rouge started up a daily newspaper in New Orleans. Carl Redman, executive editor of Th e Advocate, tells me his group was over-whelmed by the response. Th ey had hoped for a circulation of 10,000 by February 2013. Instead, more than 10,000 subscribed to the newspaper within a week. Between home delivery and single copy sales, Th e Advocate now reaches approximately 20,000 homes each day in New Orleans.

I’ve tried to reach someone at the Times-Picayune, sending emails to the publisher and several managers, but received no response.

I decided to talk with Rob Curley, deputy editor of the Orange County Register

in California. Curley’s résumé includes more experience in online journalism than anyone I can think of and I fi gured he could give me insight on whatever it is I’m missing related to the Times-Picayune’s conversion to a non-daily.

Instead we spent most of our conversa-tion talking about Curley’s new role as one of fi ve deputy editors of the Orange County Register, one of the 20 biggest papers in the country. Since July, the newspaper has increased its newsroom staff from 185 writers and editors to 300. I could sense his excitement when he discussed his work.

After talking with Redman and Curley, I found it diffi cult to understand why Safer referred to newspapers as “dying.”

I found it even harder to understand after reading reports from Wall Street that six of eight publicly traded newspaper companies showed increases in their stock prices in 2012.

I’ve also visited with two newspapers in Virginia and Kentucky the past few weeks to work with their staff s. Both papers are doing well and continue to invest in the future.

While the Orange County Register may be America’s largest community paper, you can bet that thousands of newspapers will continue to serve their communities and surprise Morley Safer at the same time.

Contact Kevin Slimp, a newspaper

technology consultant and instructor, contact

him at [email protected].

KEVIN SLIMP

GUEST OPINION

Pima County, Metro Chamber work to help create, keep more jobs In the long journey toward economic

recovery, the old epigram “many hands make light work” is an important one to remember. A successful rebound and the creation of a vibrant economic climate depend less on individual, isolated decisions than they do on cooperation between the public and private sectors.

Th e goal is clear: to retain existing jobs and create new ones. More workers mean more money in the economy and more consumers boosting local businesses. Th is creates increased net revenue to businesses and generates more tax dollars to improve the infrastructure and services that benefi t the region as a whole.

Th e Tucson Metro Chamber and Pima County are committed to working together more closely, with our leadership meeting regularly to talk about areas of common interest.

Recently, we embraced a series of joint business objectives designed to further strengthen the cooperation between the

sectors and work toward conditions that are favorable to private investment.

Th e objectives identify 10 steps the county can take to help create a more secure environment for business interests.

Among the elements for success, Pima County has agreed to provide a simple, predictable regulatory environment and to provide prompt, courteous responses to requests for information.

When it comes to construction projects, the county also agreed to employ knowl-edgeable inspectors who will provide an explanation about any code violations they fi nd and will provide a timely forum to appeal the denial of permits or licenses.

As partners in the project approval process, the business community acknowl-edged 10 steps it can take to smooth the process, including submitting complete and accurate planning documents and permit applica-tions, contracting

with knowledgeable professionals and ensuring requests are well-defi ned and courteous.

An important component: meeting with county staff early in the planning and design phase to head off any potential sticking points before construction of projects begins.

Pima County has been working on improving operating effi ciencies and streamlining the Development Services Department, as well as meeting regularly

with stakeholders and measuring customer satisfaction. Th e Pima County tax levy is as low as it has been for the past fi ve years. We have reduced fees where appropriate, most signifi cantly in sewer connections.

It is, nevertheless, important to set standard expectations that we can post at workstations and in the lobby of Develop-ment Services that will serve as a reminder to both parties as we work toward our common goal of stimulating economic activity.

We look forward to making cooperative choices and strategic alliances for a productive 2013.

Contact Chuck Huckelberry, Pima

County Administrator, at [email protected] or

(520) 724-8661. Contact Mike Varney,

president and CEO of the Tucson Metro

Chamber, at [email protected] or

(520) 792-2250.

CHUCK HUCKELBERRY MIKE VARNEY


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]

LEGAL REPORTERCELINDA [email protected]

WEB PRODUCERDAVID [email protected]

RESEARCHERJEANNE [email protected]

ART DIRECTORANDREW [email protected]

ADVERTISING DIRECTORJILL A’[email protected]

ACCOUNT EXECUTIVE LAURA [email protected]

ACCOUNT EXECUTIVEALAN [email protected]

ACCOUNT EXECUTIVEDAVID WHITE [email protected]

INSIDE SALES MANAGERMONICA [email protected]

DIGITAL SALES MANAGERJIM [email protected]

CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

InsideTucsonBusiness.com

Next week’s poll: Do you agree with Gov. Jan Brewer’s decision for Arizona to accept $7.9 billion more in federal money to fund AHCCCS?

• 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

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Facebook Likes: 2,616What do you think should be the top priority of the Arizona Legislature in the 2013 session?

OPINIONBUSINESS INK

Under ObamaCare, the magic number is 46Bigger government has a cost.Th ree friends who work at three

diff erent small businesses have told me the magic number is 46. Th e number was set separately, never discussed among themselves. In fact, they don’t even know each other.

One owns her business. Th e two others are managers. One is in professional services, one in retail and one in sales. Each is a long-time “townie.”

Th eir identities are shielded behind an unwritten code of conduct between close friends. Th ey openly share their business experiences with me as confi dential “buddy talk,” not as fodder for “news talk.”

It’s a delicate, silent oath to honor. Reporting news pays the mortgage and feeds my family. Blabbermouth chatter-boxes have no true friends. Th at makes a deep and valued friendship more impor-tant than spewing personal information in a short-lived news story.

As a result, what’s said among amigos stays among amigos… except when it comes to politics. All three have business-related worries with the Aff ordable Care Act, dba ObamaCare. Th ey are struggling with the extra cost of bigger government.

Many of the 2,000-page law’s negative impacts on business have been well-rhe-torical-ized. Companies with more than 50 full-time employees are required to buy

them health insurance. Th is mandate also includes an annual fee of $63 per worker.

Non-complying companies will pay a penalty of $2,000 per employee. For individuals, going “naked” on health care insurance

carries a $695 fi ne or 2.5 percent of annual income, whichever is higher.

All three friends stressed the fact that private sector businesses — like theirs — typically pass on higher operating costs to their customers and employees. It’s a simple economic principle that most bureaucrats don’t want to understand.

To make his point, my sales friend directed me “to look it up” on an offi cial ObamaCare government website. Th e site’s text read: Under ObamaCare, the overall quality of health care is increased, while the cost, in theory, will be reduced.

Only in government does theory trump reality.

Th e reality of ObamaCare in Southern Arizona is that some small businesses already have laid off people, cut the hours of others and frozen expansion plans.

Personally, I know of three companies.Th eir magic number is 46 full-time

employees.“Th at’s safe, with some wiggle room,” my

sales friend said. To match his company’s current workload, the staff should be at about 55 people.

Beginning in October, my retail friend told me his company started cutting jobs. He knew of about 15 long-timers who were let go, each with more than fi ve years of service. Th e layoff s wiped out most of the full-time people. Himself included.

Th e owners said they had no choice but to get below the law’s 50-employee threshold. Th en going even further, most remaining workers had their time slashed to under 30 hours a week. Part-timers with few hours don’t get benefi ts.

My friend in the service industry has stayed frozen at about 46 employees for more than 18 months. After her accoun-tants analyzed the law, they told her she couldn’t aff ord to grow her business as planned.

Today, full staffi ng should be about 60 employees and that expansion would compel her to buy three more company vehicles. Employees drive company cars to clients’ locations.

ObamaCare is changing the way businesses do business. My friends’ companies already have been hurt and to

put it bluntly, they are cheesed off .Later this year, there’s been some

chatter about plans for a nationwide, town hall-style educational blitz about Obama-Care. Th e forums will focus on business owners and juicing public opinion. Th e messengers will be members of Congress and their staff s.

Th e message will be that businesses are over-reacting. Th eir accountants and lawyers don’t understand the law and are giving clients bad advice, ie., let us tell you how incompetent they are.

Once the bureaucrats explain things, the private sector will no longer fear the number 50. Th ere is nothing magical about 46. Don’t you get it? Under ObamaCare, the quality of health care is increased while the cost is reduced… in theory.

So as a business owner, when facing a complex law that impacts your investment in equipment and employees, expansion plans, profi ts and taxes, who do you turn to for advice?

Do you trust your professional account-ing fi rm and tax lawyer? Or your congres-sional representative and their staff ers who have no risk and nothing to lose?

Contact Roger Yohem at (520)

295-4254 or [email protected]. His Business

Notebook appears biweekly and weighs in on

local political, social and business issues.

ROGER YOHEM

Funding education 52.8%Restoring funding for roads 22.6% Reducing regulations 20.8% Simplifying the tax code 1.9%Enhancing trade with Mexico 1.9%

ccept

ityon?

%

9%


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Including Flowing Wells School District Surplus, & Much More

AUCTIONS INCLUDE: or Cro n ictoria CEDARA IDS R CII orta l Con Crush r

urnitur J lry El ctronics Tools Art or Coll cti l s ous hol It ms A lianc s J lry Com ut rs Tools Clothin

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Tooh Dineh Industries, Inc.EMPLOYMENT OPPORTUNITIES

Electronic Manufacturing Company located in Leupp, AZ has the following positions available:Accounting Manager, Quality Manager, Test Tech I, Manufacturing Engineer,

Production Supervisor, Quality Inspectorvisit www.toohdineh.com for application.

Submit application/resume to: Tooh Dineh Industries, Inc. HC 61, Box E Winslow, AZ 86047 or Fax 928-686-6409

Attn: Human Resource. Email: [email protected]. Navajo Preference/EEO.

Inside Tucson Business has more readers than the Daily Star

Weekday Employment Classifi eds.*

Call 623-2350 to place your ad today.

*Media Audit Feb-Mar 2010

Hiring?

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inside tucson business 01/18/2013

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