inside tucson business 08/03/12

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Fast track for C-Path Quicker process means saving more lives Page 11 Changing with the times Making the switch to electronic medical records Page 3 Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • AUGUST 3, 2012 • VOL. 21, NO. 62 • $1 FROM VACANT TO VIBRANT PAGE 19 Old Mervyn’s parcel making a dynamic retail comeback Patrick McNamara Group says city employees due millions in pension payouts Inside Tucson Business A taxpayer watchdog group in Il- linois has released a study saying Tucson government retirees could receive millions of dollars in lifetime pension payouts. Taxpayers United of America, a libertarian leaning but politically non-affiliated advocacy group, put together an analysis of the city’s highest-paid pensioners and their es- timated lifetime retirement payouts. According to the group’s analysis, the retirees’ annual pensions range from $113,979 to $67,355. All told, the retirees receive $3.9 million per year in pension payments. “ese people are being paid an astronomical amount of money for 30 to 40 years to do absolutely noth- ing,” said Jim Tobin, founder and president of Taxpayers United of America. Tobin said the group advocates having all new government hires on 401(k) and Social Security instead of the traditional publically funded pension plans that many govern- ment employees are on. e group also advocates for gov- ernment employees to pay for 50 per- cent of their health premiums. “ey defend pensions by saying they deserve it, but it doesn’t happen in the private sector anymore,” Tobin said. According to the group’s calcula- tions, many of the city retirees will earn as much as $3.4 million in pen- sion payments. ey base the figure on a retirement age of 55 and assume the pension payments will extend for 30 years. City employees are only eligible for early retirement at age 55 if they have at least 20 years service. e city’s Tucson Supplemental Retirement System Pension Fund has a budget for the current fiscal year of $68.1 million. According to a 2011 guide to the pension fund, two-thirds of the pre- investment proceeds funding comes from city contributions. Employee contributions make up the remain- der. City employees are required to contribute at five percent of their gross wages. Tobin called pension systems “immoral” and said that they were growing increasingly unsustainable. “at’s the worst part about it,” he said. “We’re forced to pay their mil- lion-dollar pensions.” Copies of the reports are online at www.taxpayersunitedofamerica.org. Getting its due City helps Rio Nuevo reclaim sales taxes Page 17

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Page 1: Inside Tucson Business 08/03/12

Fast track for C-PathQuicker process means saving more lives

Page 11

Changing with the timesMaking the switch to electronic medical records

Page 3

Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • AUGUST 3, 2012 • VOL. 21, NO. 62 • $1

FROM VACANT TO VIBRANT

PAGE 19

Old Mervyn’s parcel making a dynamic

retail comebackPa

trick

McN

amar

a

Group says city employees due millions in pension payoutsInside Tucson Business

A taxpayer watchdog group in Il-linois has released a study saying Tucson government retirees could receive millions of dollars in lifetime pension payouts.

Taxpayers United of America, a libertarian leaning but politically non-affi liated advocacy group, put together an analysis of the city’s highest-paid pensioners and their es-timated lifetime retirement payouts.

According to the group’s analysis, the retirees’ annual pensions range from $113,979 to $67,355. All told, the retirees receive $3.9 million per year

in pension payments. “Th ese people are being paid an

astronomical amount of money for 30 to 40 years to do absolutely noth-ing,” said Jim Tobin, founder and president of Taxpayers United of America.

Tobin said the group advocates having all new government hires on 401(k) and Social Security instead of the traditional publically funded pension plans that many govern-ment employees are on.

Th e group also advocates for gov-ernment employees to pay for 50 per-cent of their health premiums.

“Th ey defend pensions by saying

they deserve it, but it doesn’t happen in the private sector anymore,” Tobin said.

According to the group’s calcula-tions, many of the city retirees will earn as much as $3.4 million in pen-sion payments. Th ey base the fi gure on a retirement age of 55 and assume the pension payments will extend for 30 years.

City employees are only eligible for early retirement at age 55 if they have at least 20 years service.

Th e city’s Tucson Supplemental Retirement System Pension Fund has a budget for the current fi scal year of $68.1 million.

According to a 2011 guide to the pension fund, two-thirds of the pre-investment proceeds funding comes from city contributions. Employee contributions make up the remain-der.

City employees are required to contribute at fi ve percent of their gross wages.

Tobin called pension systems “immoral” and said that they were growing increasingly unsustainable.

“Th at’s the worst part about it,” he said. “We’re forced to pay their mil-lion-dollar pensions.”

Copies of the reports are online at www.taxpayersunitedofamerica.org.

Getting its dueCity helps Rio Nuevo reclaim sales taxes

Page 17

Page 2: Inside Tucson Business 08/03/12

2 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

1 Wells Fargo is the #1 SBA 7(a) lender by dollars according to the U.S. Small Business Administration as of September 30, 2011.2 Based on data from U.S. Small Business Administration, for federal fiscal year 2011.All credit decisions subject to approval.© 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (709199_04421)

SBA Lending Getting the right business financing is key in today’s economy. A Wells Fargo SBA loan is a smart choice, because the low down payment and low monthly payments help you maintain capital and cash flow. If you’re looking to purchase real estate for your business, acquire another business, expand to an additional location, or simply buy equipment or inventory, turn to Wells Fargo SBA Lending to help you do it.

You can be confident in our experience as an SBA lender. In 2011, we approved over a billion dollars in SBA loans to businesses across America — more than any other bank in SBA lending history.2 We’ll use that experience to guide you through the process and make sure you get the financing you need.

Apply for a loan or learn more today. Stop by a Wells Fargo location to talk with a banker, or call 1-800-545-0670 (Monday – Friday, 7 a.m. – 7 p.m. Pacific Time). You can also visit wellsfargo.com/sba.

Proud to be America’s #1 SBA lender for the 3rd straight year1

Page 3: Inside Tucson Business 08/03/12

AUGUST 3, 2012 3InsideTucsonBusiness.com

Public Notices 6Lists 7-8Meals and Entertainment 9Arts and Culture 9Profile 11People in Action 14Inside Media 15

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

EDITION INDEX

CONTACT US

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

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

Follow us: Twitter.com/azbiz | Twitter.com/BookOfLists | Facebook.com/InsideTucsonBusiness

PUBLISHERTHOMAS P. [email protected]

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CARTOONISTWES HARGIS

REPORTER INTERNKAITY [email protected]

NEWS

Former skeptic, doctor now embraces new approach to health care fi lingBy Christy KruegerInside Tucson Business

Th e biggest skeptics can sometimes become the greatest advocates when new technology is concerned. And doctors are no diff erent. When Dr. Jeff rey Selwyn was urged to convert his patient fi les from pa-per to electronic, he vehemently opposed the idea.

“I felt my charts were legible and well organized,” said Selwyn, an internist with New Pueblo Medicine. “Doctors do not welcome change because we’re busy. About seven or eight years ago we started a concerted eff ort to use electronic health records. We picked NextGen, a system that’s pretty well known and it’s good for outpatient providers.”

Eventually, everyone at New Pueblo was on the new system except Selwyn. “Finally, it was my turn. All the staff was trained and we had IT people around us. So I learned the system and converted patient records. We had a lot of support to help,” he said.

Selwyn temporarily cut back on his patient load during the transition phase, and after a couple months he began to feel comfortable using the technology that is becoming standard in his profession. He also started to realize its value.

“I was amazed at what it did to enhance patient care. It’s easy to fi nd charts, the continuity of care was boosted,” he said.

Using electronic medical records (EMR) also allows sharing of fi les with other pro-viders, Selwyn pointed out, which reduces redundancy, saving time and money. Th is area, however, needs some refi nement. Currently, the various EMR systems can’t interact with one other. But Selwyn is help-ing to make that happen, as well.

“In Arizona we’re developing HIE — health information exchange — that will allow us to communicate via an interface

with the diff erent EMR systems. In several months we’ll have it up and running,” Sel-wyn said.

Th e EMR trend is not just good for pa-tients and convenient for providers; it’s mandated in the federal government’s 2010 Aff ordable Care Act. Conversion is a long process, Selwyn explained, with vari-ous levels of compliance. Tucson Medical Center and New Pueblo are among those who have achieved the higher levels.

Four years ago Selwyn became involved with a steering committee made up of Tuc-son area doctors, chief executive offi cers and administrators who worked to develop Arizona Connected Care, now a govern-ment-recognized Accountable Care Orga-nization. Centers for Medicare and Med-icaid Services defi nes an ACO as a group of health care providers who agree to be accountable for giving quality care to their Medicare patients while lowering costs.

In January Selwyn became chairman of the board of Arizona Connected Care, which is comprised of Tucson Medical

Center, area community health centers and more than 150 physicians. On April 1, the Centers for Medicare and Medicaid Services, an agency of the U.S. Department of Health and Human Services, selected Arizona Connected Care to be among 27 ACOs selected to participate in its Shared Savings Program.

Th e goal of the three-year pilot program is to increase the quality of care while re-ducing health care costs. As this is accom-plished, Selwyn said, those savings will be shared equally between Centers for Medi-care and Medicaid Services and the ACO.

Selwyn recalls a similar system being proposed by medical organizations in the 1970s, but it was not accepted in Washing-ton, D.C. He thinks it’s ironic the govern-ment is now coming to the medical profes-sion saying, “Maybe you could do a better job,” as he puts it.

He believes the ACO model will be a boon to health care in the U.S. “It’s a team

Opt

um

Dr. Jeffrey Selwyn goes over records with patient Bill Bergen.

see DOCTOR page 6

Sunquest Info Systems sold for $1.4 billion Tucson’s Sunquest Information Systems Inc., a maker of diagnostic and laboratory software for healthcare industry, has been acquired by Roper Industries Inc., a diversifi ed industrial technology company headquartered in Sarasota, Fla.

Th e total deal, announced Monday (July 30), is valued at $1.42 billion, including $25 million in cash tax benefi ts. Th e deal is ex-pected to close within 30 days, pending gov-ernmental antitrust approval. Roper is a publicly traded company (NYSE: ROP).

Roper is acquiring Sunquest from private equity fi rms Vista Equity Partners and Huntsman Gay Global Capital. Vista Equity had acquired the fi rm for $381.5 million in 2007 from London-based Misys Healthcare. After the acquisition, the private equity fi rm returned to using the name Sunquest, the name it had used when founded in Tucson in 1979 by Sidney Goldblatt, director of the clinical laboratory at Conemaugh Hospital, Johnstown, Pa.; Jim Peebles, who was with the Airborne Instrument Laboratory at Johns Hopkins University; and Robert Mor-rison, an interface technology engineer at what was Burr-Brown Corp. After going public in 1996, Misys acquired the company in 2001 for $404 million.

Sunquest’s current headquarters are at 520 S. Williams Blvd., where it has about 300 employees. Its software is being used in more than 1,700 hospitals around the world.

Rosemont expects to spend$1.2 billion to open mine

Th e parent company of Rosemont Cop-per has issued an updated feasibility study showing the total initial capital costs it will spend for construction and development of the mine in the Santa Rita Mountains will total $1.2 billion, a 32 percent increase over the cost estimate in the company’s previous feasibility study issued in 2009.

Th e higher price refl ects infl ation but also includes design changes to meet the recom-mendations of the U.S. Forest Service. Th e changes include eff orts to reduce the total impact of the mine, pollution control, habitat migration, resource conservation and public safety, according to Augusta Resource.

Using various scenarios for future copper prices, the feasibility study anticipates a pay-back of the initial investment within about 2½ years. Annual copper production from the Rosemont Mine is expected to average 243 million pounds over its 21-year life.

Page 4: Inside Tucson Business 08/03/12

4 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

Two on city council raise issues over plan to extend Sabino Canyon Road

NEWS

By Patrick McNamaraInside Tucson Business

City of Tucson leaders have raised ques-tions about a plan to extend Sabino Can-yon Road south across the Pantano Wash connecting to Kolb Road, one of the major projects of 2006 Regional Transportation Authority plan.

City Councilmen Paul Cunningham and Steve Kozachik say they are concerned based on estimated costs and potential negative impacts the proposed roadway would have on nearby residents.

“Th e project began at $9 million, it’s now over $21 million,” Kozachik said.

Th e new roadway would be a four-lane divided roadway with a bridge crossing the Pantano Wash.

RTA offi cials say the original cost es-timates didn’t take into account that the roadway would traverse a section of de-commissioned landfi ll, which has created the need for additional design and con-struction features.

“Th at’s probably one of the most signifi -cant cost factors,” said Jim DeGrood, trans-portation services director for the RTA.

During the initial planning of the proj-ect, before the RTA was put to a public vote, it was wrongly assumed the proposed roadway would not cross a section of land-fi ll, DeGrood said. Now that it’s known the road will traverse the area, additional de-

sign functions have to be included to pre-vent settling beneath the road and to en-sure adequate drainage.

Additional costs also came into play with the nearly complete intersection im-provements at Sabino Canyon and Tanque Verde roads.

Originally it was thought the intersec-tion would not need widening and drain-age and other improvements that have since been done, DeGrood said.

Th e city has been able to leverage nearly $12 million in federal transportation grants to bridge the funding gap.

Cunningham said the new-found mon-ey should go to fi xing potholes and other road repairs.

“In other words, we can’t maintain the roads we’ve got but we’ll build new ones,” he said.

DeGrood said it would be possible to use additional or leftover funds from the extension project to fi x potholes, particu-larly along Kolb where the new road will connect.

He also said many RTA projects have so far come in under budget, benefi ting from the economic downturn.

Th e Sabino Canyon Road extension is designed to alleviate congestion that now travels west to the Grant-Kolb intersection, one of the region’s most congested.

Traffi c analyses show volumes of left-turn traffi c from west-bound Tanque Verde

to south-bound Kolb exceed 800 vehicles per hour at peak travel times. South-bound Sabino Canyon at Tanque Verde sees more than 1,200 vehicles per hour at peak time making right turns.

Th e new roadway would be used by as many as 21,000 vehicles each day.

Ramon Gaanderse, executive director of the Tucson Utility Contractors Association, said even with the early inaccurate cost es-timates, the project should continue.

“Certainly you want to use the taxpay-ers’ money wisely,” Gaanderse said, adding that creating delays to the project would only cost more. “Th e longer we wait the cost will just keep going up and up.”

For Kozachik, the explanation that the federal government provided the addi-tional funding doesn’t change that a large amount of public money will be spent on the project.

“Th ere is a perception that if it’s govern-ment money it’s free money,” he said.

Th e money still comes from taxpayers, Kozachik said, and the government has an obligation to spend appropriately.

Kozachik and Cunningham will re-view the project at a meeting at 6 p.m. to-day (Aug. 3) at East Side City Hall, 7575 E. Speedway.

Contact reporter Patrick McNamara

at [email protected] or (520)

295-4959.

Construction continues at the Sabino Canyon and Tanque Verde roads intersection where widening and drainage improvements were done in preparation for extending Sabino Canyon to Kolb Road.

Patri

ck M

cNam

ara

Metro chamber restructures,COO Holmes’ position cut

Th e Tucson Metro Chamber is undergo-ing a personnel restructuring that elimi-nates Bill Holmes’ position as chief operat-ing offi cer and four other positions, two full time and two part time.

Mike Varney, president and CEO of the chamber, announced the changes in a mes-sage to members Tuesday (July 31). He said the changes took eff ect this week and em-phasized that all current chamber programs will continue.

Bruce Dusenberry, chairman of the chamber’s board, said in the announce-ment that the changes came about after an assessment of the operation structure of the organization. “Like all companies, nonprof-its need to watchful over their bottom lines,” he said.

In an interview, Varney said, “Th e bot-tom line is that we want to be better and at the same time leaner and meaner.”

Th e restructuring will cut costs but Var-ney said it will be coupled with a campaign to raise revenues through new member-ships and other programs, which are pro-jected to raise more than 1½ times the amount of money to be cut. He declined to talk specifi c budget numbers, saying he would have to go to his board before doing so.

Despite the elimination of the chief op-erating offi cer position, the chamber is cre-ating a new management position to over-see fi nance and operations. Varney said the chamber has already begun a process to fi ll that position.

Meanwhile, the chamber has made an off er to Holmes to become vice president of special projects.

“I hope he takes it,” Varney said. “No-body has a better network of contacts in this region than Bill Holmes. Frankly, his talents were wasted being here in the offi ce manag-ing the operations.”

Varney and Holmes were hired at the same time in April 2011 after the retirement of CEO Jack Camper. Varney had been CEO and president of the North Las Vegas Cham-ber of Commerce in Nevada for 11 years. Holmes, who had been in Tucson for 35 years, came from Wells Fargo, where he was vice president and community relations manager.

Varney said the chamber is making strides. Membership revenue was up 16 percent for the fi scal year ended June 30 and the goal is to grow them even more this year, he said.

Th e other positions that are being elimi-nated are government aff airs coordinator, an administrative assistant and two part-time receptionists.

Page 5: Inside Tucson Business 08/03/12

AUGUST 3, 2012 5InsideTucsonBusiness.com

NEWS

Some details on how health-care reform will aff ect you

Inside Tucson Business

Th ere’s no putting it off any longer. Now that the U.S. Supreme Court has upheld the federal government’s health-care reform law, more Americans and business leaders are facing up to fi nd-ing out what’s in it, as former Speaker of the House Nancy Pelosi advised when she told an audience in 2010, Congress will have “to pass the bill so you can fi nd out what’s in it, away from the fog of controversy.”

As it stands, here’s an overview of how the the 2010 Patient Pro-tection and Aff ordable Care Act is poised to aff ect families, indi-viduals and business:

Expansion of insurance coverageTh e major goal is to expand access to health insurance by mak-

ing more people eligible for Medicaid (those with incomes up to 1.33 times the poverty level), and by off ering generous subsidies to help families pay for insurance.

One estimate, published by the nonpartisan Congressional Budget Offi ce, projects that by 2020 some 32 million Americans who would be uninsured without the law will have coverage.

Th ose gains would include about 17 million people added to Medicaid, and 22 million who are expected to buy insurance on their own from private fi rms – on “exchanges” set up at the state level. (Th e gains would be off set somewhat by a projected decline in the number of people covered by employer-sponsored health plans.)

But the Supreme Court held that states cannot be coerced into participating in the Medicaid expansion, which means the deci-sion is being left up to states and end up reaching fewer than 17 million people.

Gov. Jan Brewer has been meeting with health care offi cials and others before making a decision as to whether the state will create an insurance exchange and expand the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid program.

‘Individual mandate’Th e mandate that individuals carry insurance or pay a fi ne was

at the center of the Supreme Court’s legal review, which a 5-4 ma-jority of the justices found to be constitutional under Congress’

power of taxation.In practice, most Americans already have health insurance,

such as from their employer or from a government program such as AHCCCS. Th e mandate does aff ect the millions of people who don’t have insurance, with some important exceptions: Some people, such as Amish households, will be able to claim a reli-gious exemption, while others won’t be aff ected because they are in prison or are undocumented immigrants.

One large group of Americans will be exempt because of their income. People won’t be required to buy insurance if it will cost more than 8 percent of their earnings. Subsidies will help keep at least some families below this “unaff ordable” level in the pro-gram, but the federal aid is phased out as household income rises. A family of four with $60,000 in income might be eligible for a fed-eral subsidy under the act to buy insurance, and yet be exempt from the individual mandate.

High-earning Americans will be subject to the mandate, be-cause the insurance costs will amount to less than 8 percent of their income.

Fines for uninsuredIf you are subject to the mandate and don’t buy insurance, fi nes

will be assessed through the tax code. By 2016, after two years of the mandate, the fi nes will be either $695 per person (up to $2,085 per family) or 2.5 percent of income, whichever is larger. (Th e fi nes are set at lower levels for the fi rst two years. For example, in 2014 it’s $95 per person or 1 percent of income.)

Subsidies for buying insurance

If you need to shop for yourself, there are two kinds of subsi-dies. One is premium credits to help households with incomes of four times the poverty level or less. Th e other main subsidy would reduce the amount of medical copayments owed by insured indi-viduals or families.

A “health reform subsidy calculator” from the Kaiser Family Foundation can help chart the likely impact. As already noted,

see REFORM page 6

This Week’s Good News Improving life on D-M

Back in March, Davis-Monthan Air Force Base was named the winner of the 2012 Commander in Chief’s Installation Excel-lence Award, which brought with it a $1 mil-lion prize to be used for quality of life im-provements on the base. After pouring through a variety of submissions, then on-line voting and high-level evaluations the decision has been made that the major por-tion of the money will go to opening a per-manent gate on the south side of the base.

Upgrading Gate 29B, which is north of the intersection of Valencia and Wilmot roads, will shave about a half-hour off the commute times of 5,000 unique individuals annually who will come from the south, according to an announcement from Col. James Meger, acting 355th Fighter Wing commander. Ad-ditionally, it will help reduce congestion at gates on the north side of the base.

Th e rest of the prize money will go to Davis-Monthan projects including a cross-functional fi tness room, an upgrade to the Airman’s Loft, interval training bikes, instal-lation of a sidewalk in a base housing area, a fl ightline gym upgrade, upgrades to a tax as-sistance clinic upgrade, a special needs seminar, 355th Force Support Squadron barbeque grill and a dog park.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Battle of Wrightstown? Tucson Unifi ed School District’s plans to

sell its closed Wrightstown Elementary School, 8950 E. Wrightstown Road, is starting to get some pushback from nearby residents who are none too thrilled at a developer’s proposal to put 108 rental houses on the 9.2-acre site.

A neighborhood across the street from the site, on the north side of Wrightstown Road, has expressed concern the new resi-dents will overburden the two-lane roadway beyond its capacity. Th at has a neighbor-hood on the south side of Wrightstown wor-ried that their residential streets would be used to relieve congestion.

Th e whole deal with TUSD hinges on the city allowing a rezoning of the property that current-ly would allow just 11 homes on the site.

Alta Vista Communities has proposed buy-ing the site for $1.6 million and demolishing the school, except for one historic building, to make way for its development. Wrightstown was one of six elementary schools TUSD closed in 2010. Th e school board voted 3-2 to sell the property, provided the developer’s plans are approved.

Page 6: Inside Tucson Business 08/03/12

6 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

NEWSapproach with support staff . We’re trying to make a system that’s value, not volume-driven and to improve the patient experi-ence,” he said.

One way this will be done is by hiring nurse case managers to support patients discharged from the hospital. Re-admission rates are excessively high in this country and costly, and Selwyn agrees with the approach. Case managers, he said, will visit patients at home the day after being released from a hospital stay and go over their care, medica-tions and answer questions. Th ey will also ensure these patients keep their one-week

follow-up doctor’s appointment.Selwyn has become so passionate about

EMR and the Shared Savings practices, he has put his retirement on hold to help other physicians convert to e-records. And he’s excited about being a part of the new direc-tion in health care, one that he has dreamed of for decades.

“I’m at the end of my career, but this has energized me to continue. I’ve seen a lot of interest and passion. My education has been transformational and I’d like to share with other doctors. I see myself being in-volved for many years.”

DOCTOR continued from Page 3

the subsidies phase out as incomes rise. And for low-income households, there is still the decision to be made at the state level whether to expand AHCCCS. So, people with incomes below 1.33 times the poverty level may be forced to look toward the subsidies, rather than AHCCCS, to gain coverage.

Employer-based coverageEmployers are encouraged to maintain

or expand insurance for their workers – with fi nes of about $2,000 per worker for fi rms with more than 50 employees that don’t off er coverage. Tax credits are avail-able to help small employers off er insur-ance.

But one unanswered question is how many employers will cease to off er cover-age, paying the fi ne instead. Republican presidential candidate Mitt Romney has warned that up to 20 million people may “lose the insurance they want.” He also cited one survey in which businesses said the law “makes it less likely for them to hire people.”

Obama, on the other hand, said, “if you’re one of the more than 250 million Americans who already have health insur-ance, you will keep your health insurance – this law will only make it more secure and more aff ordable.”

Th ere’s also a steep tax, starting in 2018, on fi rms off ering expensive “Cadil-lac” health plans, in a bid to discourage escalation of health costs. Th e law defi nes these as plans with premiums of $10,200 or higher for an individual, $27,500 for a family, indexed to infl ation.

Insurance for childrenChildren can be covered as dependents

up to age 26 in all individual and group policies. Th at provision is already in ef-fect.

Security of coverageInsurers must take all comers. Th is

“guaranteed issue” of insurance means fi rms cannot deny coverage, or drop it, be-cause of someone’s medical condition.

Individual and group health plans are prohibited from putting a lifetime cap on their coverage for an individual.

Personal taxesTh ere are a range of tax hikes. Some

are on businesses, such as a 10 percent excise tax on indoor tanning services that went into eff ect in July 2010 and new fees charged to manufacturers and import-ers of brand name pharmaceuticals as of 2011.

Other taxes will fall on individuals. Among the major taxes are a 0.9 percent hike in the Medicare payroll tax for house-holds earning over $250,000, and a 3.8 per-cent tax on investment income for higher-earning households.

Th e law also sets a new limit for contri-butions to fl exible spending accounts used for medical purposes ($2,500 per year as of 2013, adjusted annually by the cost of living). And it ratchets down a tax deduc-tion on unreimbursed medical expenses. For someone to claim the deduction, the expenses must exceed 10 percent of that individual’s adjusted gross income, as of 2013, up from 7.5 percent currently.

And there’s moreOne example of the wider reach of the

law: Food sold in vending machines and at chain restaurants must come with nu-tritional labeling.

Material from Th e Christian Science Moni-

tor was included in this report.

REFORM continued from Page 5

BANKRUPTCIESChapter 7 - Liquidation Southern Mill Carpet & Tile Inc., c/o Robert Knight, 7941 S. Camino Loma Alta. Principal: Robert Lawrence Knight, president. Estimated assets: $50,000 or less. Estimated liabilities: More than $100,000 to $500,000. Largest creditor(s): Bank of America, Charlotte, N.C., $96,454.51. Case No. 12-16616 fi led July 25. Law fi rm: Pro se

FORECLOSURE NOTICES Reece Industries LLC 3407 E. Benson Highway 85706Tax parcel: 140-05-01902Original Principal: $250,000.00 Benefi ciary: Bayview Loan Servicing, Coral Gables, Fla. Auction time and date: 11:30 a.m. Oct. 17, 2012 Trustee: Jason P. Sherman, Shapiro Van Ess and Sherman, 3300 N. Central Ave., Suite 2200, Phoenix

Sierra Sol Custom Building & Development LLC 625 E. Vuelta Caminata Del Rio, Oro Valley 85737Tax parcel: 224-28-2630Original Principal: $1,997,000.00 Benefi ciary: Santa Barbara Bank & Trust, formerly known as Pacifi c Capital Bank, Santa Barbara, Calif. Auction time and date: 11:30 a.m. Oct. 30, 2012 Trustee: Robert W. Saxton, SBS Trust Deed Network, 31194 La Baya Drive #106, Westlake Village, Calif.

Euclid NT Partnership LLC 11425 N. Musket Road, Marana 85653Tax parcel: 208-25-0260Original Principal: $200,000.00 Benefi ciary: Roxanna Rogers, Cortaro Auction time and date: 10 a.m. Oct. 24, 2012 Trustee: James M. Woodrow, 7440 N. Oracle Road, Building 5

Kaufman Catalina Village-DE LLC 7760, 7790, 7792, 7794, 7796, 7800, 7802, 7804, 7810, 7816, 7820, 7830, 7840, 7842, 7844, 7846, 7848, 7850, 7852, 7854, 7856 and 7858 E. Wrightstown Road, 85715Tax parcel: 133-12-006MOriginal Principal: $6,920,000.00 Benefi ciary: GSMS 2005-GG4 Wrightstown Road LLC, c/o LNR Partners LLC, Miami Beach, Fla. Auction time and date: 1:30 p.m. Oct. 23, 2012 Trustee: Craig K. Williams, Snell & Wilmer, One Arizona Center, 400 E. Van Buren St., Phoenix

LIENSFederal tax liens Bennett Pool Specialties and Matthew Thomas Bennett, 4050 E. Camino De La Bajada. Amount owed: $48,892.72. Pryde Business Systems LLC and Lyle S. Wood, PO Box 31888, 85751. Amount owed: $9,956.00. Law Offi ces Susan M. Schauf Ltd, 6221 N. Placita De Luis. Amount owed: $28,262.55. Huachuca Concrete Inc., 7777 E. Valencia Road. Amount owed: $568,847.03. Venture-N Inc., 1239 N. Sixth Ave. Amount owed: $26,052.48.All Seasons Desert Landscaping and OND Contractor Services LLC, 2977 E. Manzanita Ave. Amount owed: $24,955.11.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)Pepe’s Taco Shop, Whammijump and Jose L. Mendivil, 2733 N. Walnut Ave. Amount owed: $3,522.96. International Restaurant II LLC, 2720 N. Oracle Road. Amount owed: $20,969.13. Women’s Empowerment Partnership Inc., 7300 Scout Ave. #E, Bell Gardens, Calif. Amount owed: $183,258.14.Samurai Teppan & Sushi and Murai LLC, 1855 N. Grand Ave., Nogales. Amount owed: $4,035.99.

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

Russell Sigler/Sigler against Moreland Arizona Properties LLC, Avondale Auto Group and Tucson Volkswagen. Amount owed: $27,706.89.

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

Russell Sigler/Sigler against Sun Life Assurance Company of Canada and Leslie’s Swimming Pool Supply. Amount owed: $11,774.67.Oremus Materials Inc. against Sunrise LG LLC, Vantage Pppty Invs Stuart JS Gulland, Lowe’s HIW Inc. and LaSalle Bank. Amount owed: $13,778.50.

Release of federal liens Sonoran Drywall Corp., 4989 W. Camino De MananaMcClelland Nurse Consulting Inc., 9366 N. Waxwing CourtB&M Machine and Denise Ann Smeltzer, 1926 W. Price St. MedAssure of Tucson Inc., 904 W. Grant RoadBorderlands Theater Teatro Fronterizo Inc., PO Box 2791, 85702Formula I Ltd., 596 E. 23rd St. Desert Hues Painting Contractors, 210 N. Wilmot Road, Suite 320

Release of state liens EC and Associations Construction LLC, 5650 S. 12th Ave.24 Hour Heating and Cooling, 1830 E. Eighth St. #1San Ignacio Golf Course LLC, 1700 Country Club Drive, Plano, TexasLittle Mexico Restaurant, 698 W. Irvington RoadB.D. Warbucks Inc., 4116 N. Iroquois Ave.Paperware Systems LLC, 190 W. Continental Road, Green ValleyTucson Wrecker Pool and Denise Smelzer, 1926 W. Price St.Selah Investment Group Inc., 12820 E. Cape Horn DrivePicture Rocks Feed and Arnulfo Quiroz Jr., 5435 N. Sandario Road, Picture RocksEnvironmental Strategies Inc., 423 S. Olsen Ave.

Release of mechanic’s liens Effi cient Electric Inc. against Campbell Ave. Shopping Center LLC and Riley LLCCollins Excavating & Materials Inc. against CRS DQ Holdings and JPMorgan Chase BankSunstate Equipment Co. LLC against Dillon Real Estate Co. Inc. and the Kroger Co. Oracle Control Systems against Wilmot Apartments LPCatalina Drywall LLC against 119 E Toole Avenue LLCCastle Flooring Inc. against DJ Williamson Enterprises Inc. and Himada Properties LLC c/o Jagdism Patel, Carlson Co.Canyon State Electric Company Inc. against Marana Health Center Inc.Nicholas Consolidated Inc. against DND Neffson Co. and General Growth PropertiesBorder States Industries Inc. against CF Holdings LLCPRL Glass Systems against Park Mall LLC and General Growth PropertiesFidelity Mechanical Contracting Inc. against Smith Food & Drug Centers Inc.Richard McAvoy Tile against Smiths Food & Drug Centers Inc.PRL Glass Systems against Park Mall LLCA American Electrical Services Inc. against Campbell Avenue Shopping Center LLC, Riley-Tucson LLC and Skechers USA Inc.Abracadabra Restoration against Shamrock LLCCamwest Group Inc against Southgate Academy Temporary Classrooms Vratsinas Construction Company against City South Plaza LLCEssco Wholesale Electric Inc. against ATS Electric Inc., Vratsinas Construction Company, City South Plaza LLC and La Curacao

CorrectionPassenger numbers at Tucson International Airport were down through three of the fi rst six months of 2012 but two months of in-creases — 3 percent in February and 5.2 in March — more than made up for the other months. The Business Travel column in the July 27 issue said passenger numbers had been down more than three months.

Contact information for Susan Chetlin, one of the two lawyers who authored the column on Social Media in the Workplace in the July 27 issue, was left out in the publication. Contact Chetlin, a director and Intellectual Property Practice Group Chair, at [email protected].

Page 7: Inside Tucson Business 08/03/12

AUGUST 3, 2012 7InsideTucsonBusiness.com

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8 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

Page 9: Inside Tucson Business 08/03/12

AUGUST 3, 2012 9InsideTucsonBusiness.com

couple of amuse bouche items added in. (Amuse bouche is a French term that means “mouth amuser” and they’re usually single bite-sized items served compliments of the chef.)

In this case, the dinner starts off with

an white chocolate amuse bouche featuring cured Muscovy duck “sashimi” with stone fruit, white chocolate crème fraiche and a honey comb. Th en the fi rst course highlights squash blossoms with a white chocolate chevre. Dark chocolate will be used in the preparations of the next two courses, a rabbit loin and fi let mignon with seared foie gras.

Th e second amuse bouche will precede desert and is a chocolate macaroon with dark chocolate ganache and white chocolate. Finally, the offi cial dessert is called “Shades of Chocolate” and features Saigon milk chocolate mousse, dark chocolate biscuit, white chocolate cream and cocoa nibs.

Th e cost is $65 per person,including wine pairings. Th e Grill is taking reserva-tions starting at 5:30 p.m.

• Th e Grill at Hacienda Del Sol, 5501 N. Hacienda Del Sol Road — www.hacien-dadelsol.com/dining/ — (520) 529-3500

Contact Michael Luria at mjluria@

gmail.com. Meals & Entertainment appears

weekly in Inside Tucson Business.

ArtTh e galleries at

Tohono Chul Park, 7366 Paseo del Norte northwest of Oracle and Ina raods, are hosting a pair of exhibits. One is “Contem-porary Ceramics,” featuring the work

of several local ceramic artists in a show that will be up until Oct. 21. Th e other exhibit, “Pollinators: Th e Art of Interdependence,” features 14 diff erent artists’ works depicting scenes of nature in this region, which will be up through Aug. 12.

FilmTh e big fi lm release of the weekend is the

remake of “Total Recall” starring Jessica Biel, Kate Beckinsale and Colin Farrell, in the role made famous by Arnold Schwarzenegger in 1990. Th e sci-fi thriller looks pretty good but the campy classic will be hard to beat. Also opening this week at the Loft Cinema, 3233 E. Speedway, are two fi lms of note, “Bill W.,” a documentary about the founder of Alcoholics Anonymous, and “A Cat in Paris,” which is an animated fi lm about a cat burglar and a cat.

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

Business.

HERB STRATFORD

ARTS & CULTURE

Th e newest documentary from fi lmmaker Dan Buckley, “Tucson’s Heart and Soul - El Casino Ballroom,” is about the venerable facility at 437 E. 26th St. that has hosted world renowned performers such as James Brown and Fats Domino, traditional Hispanic musicians including Tito Puente as well as untold numbers of family events such as weddings and Quinceñieras over the last 65 years.

Th e fi lm will be premiered at 2 p.m. Sunday (Aug. 5) at the Fox Tucson Th eatre, 17 W. Congress St. A suggested $3 admission will be taken at the door.

MusicTh e fi nal two “Friday Night Live”

concerts at Main Gate Square take place this month. At 7 p.m. tonight (Aug. 3) local singer Crystal Stark will be on stage at the Geronimo Plaza Courtyard, 820 E. University Blvd. Th en, on Aug. 17, the band Sonoran Soul will perform its mixture of fusion and funk. Th e concerts are free.

Casino Del Sol’s AVA Amphitheater, 5655 E. Valencia Blvd., features a trio of shows this weekend. At 8 p.m. tonight British soul and R&B singer-songwriter Seal will be on stage with special guest Macy Gray. At 8 p.m. Saturday, Latin music acts Los Tigres Del Norte and Banda El Recodo will be in concert, live in concert together. And at 8 p.m. Sunday Latin rap musician Pitbull performs. Ticket information is online at www.CasinoDelSol.com.

Documentary looks back on history of El Casino Ballroom

OUT OF THE OFFICE

MICHAEL LURIA

MEALS & ENTERTAINMENT

Celebrate Ferragosto with Chef Tenino at Tavolino

Ferragosto, an Italian holiday that dates back to the Roman Empire, is being celebrat-ed this year in Tucson when Chef Massimo Tenino presents a holiday feast at 6 p.m. Aug. 12 at his Tavolino Ristorante Italiano.

“I love the idea of creating a big family meal with a beach theme. We will push the tables together, as they do in my country, and enjoy a great evening together with my Tucson family,” Tenino says. “Th e food will be plentiful and the wines will be fl owing as I take you on a culinary tour of beautiful Italy.”

Th e menu includes assorted salame, a seafood salad, crab cakes with truffl e aioli, lightly fried calamari, homemade pasta and maialino arrosto – a whole suckling pig roasted in the restaurant’s wood-burning rotisserie. Assorted gelatos will be off ered for dessert.

Th e cost is $65 per person and reserva-tions are required.

At one time Italian businesses closed for vacation for the entire month of August but that has been shortened to just a few days surrounding Aug. 15. It is still marked with big celebratory meals, often at the beach.

• Tavolino Ristorante Italiano, 2890 E. Skyline Drive in Plaza Colonial — www.tavolinoristorante.com — (520) 531-1913

Chocolate for dinnerTh e Grill at Hacienda Del Sol is taking des-

sert to a new level with a World of Chocolate dinner Tuesday (Aug. 7). A specially created multi-course dinner will be the only menu item off ered for the evening.

It’s basically a four-course dinner with a

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Page 10: Inside Tucson Business 08/03/12

10 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

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SALES JUDO

A look at how revenue producers feel about their jobsAs part of exploring the possibilities of

becoming revenue producers themselves after graduation, this summer 43 students in the University of Arizona’s Marketing Minor program interviewed 18 revenue producers working in both the for-profi t and non-profi t sectors. Here are some of the responses they reported that I found interesting. (I’m noting the responses from the non-profi t sector with “NP.”)• What do you like most about your job as a revenue producer?

“I like working with clients and provid-ing the best solution for each. Every day is diff erent, and no day as a revenue producer is ever the same.”

“It’s very challenging, and I’m never bored. I love the ‘hunt’ for new business. I’m also well paid!”

“I like the products that I sell, my co-workers and the company, which feels like a family!”

“I like dealing with a variety of people and diff erent business situations. I also like going on sales calls and getting out and about.”

“My boss is a great mentor, and I feel that there are good opportunities for advancement. I also like the product and the organization!”

“I really like the mission that my charity supports and raising money for the people it helps. I also like building relationships with my donors. I also like working with a team of committed co-workers.” (NP)

• What do you like least about your job?“I don’t like weekly meetings that have

nothing to do with me or my department!”“We have a lot of turnover in sales and

management staff , and it gets frustrating

dealing with so many new co-workers.”

“I don’t like having to fi ll out paperwork, and some of my managers haven’t been good at all.”

“I don’t like being drawn into collection activities

or dealing with deadbeat customers. Also, I don’t enjoy dealing with paperwork.”

“Th e long hours and work over the weekends are issues for me.” (NP)

“I don’t like the economic pressure on our donors and the short-term thinking we sometimes encounter. And I wish we could do more for our community.” (NP)• How would you advise me for a career as a revenue producer?

“If you always ‘do right’ by your client, it will come back to you 10 fold. Never ever sell them something that is driven by your needs, only by theirs. If you try to push a product on then, they’ll soon know the diff erence, and you’ll never have a repeat sale.”

“Generating revenues isn’t easy. It’s very competitive, and the economy has been on a roller coaster. Prepare to be underappreci-ated, overworked and overlooked on a regular basis, and don’t let it get to you. Grow some thick skin and always remember that your clients come fi rst. I realize that this may sound negative, but I truly love what I do and have a great relationship with my coworkers. I have fun at work and look forward to coming in to my job…most days.”

“You must show initiative and be a

self-starter and a self-promoter. No one will tell you what to do. It’s almost like you are the owner of your own business.”

“Revenue generation is a portable profession, and good producers are always in demand. But assess your own personal-ity before you dive into the fi eld. If you are shy, introverted or easily discouraged, you probably won’t be happy or successful as a revenue producer.”

“You won’t close every opportunity. If you lose one and whenever you can, learn why you lost it, and don’t take it personally.”

“Some ‘major gifts,’ can take a year or two, sometimes longer, so be patient. Also have a lot of these opportunities in motion at one time so that you can produce revenues on a regular basis.” (NP)

“If you go into fundraising, be sure to fi nd something that you absolutely believe in and have a passion for. Also, if you are a female, fi nd strong female role models and mentors. Finally, fundraising isn’t a hard sell or a one-call close. It’s much more about building and maintaining relationships.” (NP)• Tell me a little about your educational background.

Most of the revenue producers interviewed had some college, a college degree or an MBA. All in the non-profi t sector had college or masters degrees. Most had received additional sales or fundraising training from either their own or third party organizations. Here are some general observations:

Th e vast majority of the undergraduates who participated in this summer’s Market-ing Minor program — perhaps as many as 35 out of 43 — initially didn’t like the idea of working as revenue producers unless they viewed it from the perspective of

“selling themselves” to get a job. For the most part they felt this way for

one or more of three reasons:1. Th ey didn’t see the fi eld as a true

profession2. Th ey thought it was populated by

pushy, manipulative and not very well educated people

3. Th ey associated revenue generation with simple, one-call-close transactions.

Th e eight or so students who were comfortable with the idea of working as revenue producers from the start had either done so previously or were interested in working with non-profi ts as fundraisers.

By the end of the course most students came to understand the fi eld of complex, consultative sales involves a number of steps and skills and is indeed a profession. Also they learned that transparent or manipulative closing techniques in this type of revenue production aren’t eff ective and that most successful producers and fundraisers are well educated and continu-ally upgrade their skills.

At a minimum, they learned to see themselves as products with a multitude of features and benefi ts that they then had to sort through and to confi gure to meet the needs of potential employers.

Contact Sam Williams, president of the

business-to-business sales consultancy fi rm New

View Group, at [email protected] or

(520) 390-0568. Williams is also an adjunct

lecturer of sales at the University of Arizona

Eller School of Management. Sales Judo

appears the fi rst and third weeks of each month

in Inside Tucson Business.

SAM WILLIAMS

SALES

Page 11: Inside Tucson Business 08/03/12

AUGUST 3, 2012 11InsideTucsonBusiness.com

Th e race against a million deaths begins at Tucson’s C-Path

PROFILE

By Dave TedlockInside Tucson Business

When I’ll Have Another won the Ken-tucky Derby in May, no one talked about the hundreds of millions of dollars each year that is lost by the owners of the thousands of horses that lose countless races. Now, imagine a horse race impossibly longer and riskier than the derby, not a mile and a half long and completed in just under two min-utes and two seconds, but a race stretching from New York to Los Angeles, not run on a groomed track but on a mere path and taking even the best horse about 10 years to com-plete at a cost to the owner of about a billion dollars.

Th at’s right: 10 years and a billion dollars.Th at’s the race companies of all sizes must

enter when they decide to try to win approval from the U.S. Food and Drug Administration (FDA) of a new medical product. In health-care, the race course is known as the “critical path.”

By 2006, the FDA acknowledged the se-verity of the problems with the critical path, the decreasing number of medical products entered into the race and issued a “Critical Path Opportunities List,” itemizing 76 “spe-cifi c opportunities that, if implemented, can speed the development and approval of medical products.” Th ese 76 needs include item number “7: Circulating Biomakers in Cardiovascular Diseases” and number “30: Improving Extrapolation of Animal Data to Human Experience.”

Unexpectedly enough, world-wide, the single most signifi cant response to the FDA’s plea for help in dealing with one of the great-est threats to the quality of global healthcare has come from Tucson. Beginning with the University of Arizona’s Dr. Raymond Woosley and with the help of scientists and investors (many of them from Tucson) and Science Foundation Arizona, Critical Path Institute (or C-Path) was created.

Woosley’s expertise is in pharmacology. Th at’s the fi eld – human drugs – that the average person believes FDA approval is all about, but drugs are actually one-third of the equation. If human drugs are the Ken-tucky Derby of FDA approval, then biologi-cal products (vaccines and gene therapies) and medical devices (heart values, machines dispensing radiation therapy) make up rest of the Triple Crown. C-Path’s mission is to transform all three race courses from impos-sibly long, risky, paths to the medical equiva-lent of Interstate highways with ever-increas-ing speed limits.

Th is year, under the direction of new Pres-ident and CEO Dr. Carolyn Compton, C-path is transforming itself from start-up to world-wide leader. In Tucson terms, Compton has the relentless energy and force of a Jim Click (an early fi nancial supporter) and the scary-smart intelligence of Holualoa’s Michael

Kasser (Harvard MBA, Ph.D. in engineering, member of C-Path’s board of directors.

Compton’s Harvard University MD and Ph.D., and her extensive and diverse health-care leadership background are suitably im-pressive, but her most striking characteristic is her ability to energize a room and communi-cate with detail and intensity. Having a conver-sation with her is a bit like drinking from a fi re hose.

Her answers are forceful, detailed, and passionate. “We want every winning drug, every biological product, every device to complete that path, that race faster and less expensively than ever before with new products even safer for patients,” she explains.

Th us C-Path, based in Tucson with about 50 scientists on board and a budget of a mere $7 million, has taken on a mission so enor-mous that descriptions such as “herculean” and “monumental” seem inadequate.

Make no mistake. Tens of millions of lives are at stake. A popular but ignorant fi rst thought might be that incompetent and lazy government bureaucrats within the FDA are the problem, but the hard truth is that a plethora of problems exist, from academic scientists paying no attention to even the starting gate for medical product approval to drug companies being reluctant to let their scientists collaborate even on how the race-courses can be improved. Th e result: count-less patients die every year because even if there might be a treatment for their disease, it hasn’t been approved yet, or worse yet, the treatment hasn’t even been entered into the race because approval costs too much and takes years.

“Cancer patients measure their lives in months, not years,” Compton says. “Sev-enty percent of cancer patients do not ben-efi t from treatment. For many cancers, there simply is no therapy available.”

C-Path recently won straight-up praise for its value from Congress when it re-autho-rized federal funding of the institute’s part-nership with the FDA. But one of Compton’s key challenges remains the need to persuade a wide range of players in healthcare, from foundations and universities to big pharma-ceutical companies, to commit to the long-term funding of C-Path’s work.

Bottom-line, all pharmaceutical compa-nies benefi t from C-Path’s successes regard-less of whether they’ve made a fi nancial con-tribution to C-Path. For-profi t organizations no doubt ask themselves why they should sacrifi ce bottom-line profi ts when a compet-itor might foot the bill. Th e easy decision is to let the other guy pay up.

Of course when Compton entered Har-

vard Medical School as part of the 10 per-cent of her class who were female, she never imagined the peak of her healthcare career would involve fund raising. So how does she feel today about being a CEO who must be involved in raising millions of dollars to save millions of lives?

“It’s absolutely the greatest opportunity, the opportunity of a life time, to make a dif-

ference in healthcare,” she answers without hesitation. “We have a great team here. Our people are smart, dedicated and diverse. Th ey are truly mission-driven people and that’s why they’ve chosen to work here. We are ready to take off into a new era.”

So much depends on C-Path’s success. Focused on the race. Standing alone and yet acting for all.

BIZ FACTS

Crtical Path Institute (C-Path)1730 E. River Roadhttp://c-path.org/(520) 547-3440

CAROLYN COMPTON

Page 12: Inside Tucson Business 08/03/12

12 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

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6 ways to a better relationship with a disgruntled employee Every manager or business owner has

experienced a disgruntled employee. Not only can it be incredibly challenging to deal with such an employee, it can also have a profoundly negative eff ect on a business if not addressed – and quickly.

Unhappy employees may off er your customers less than satisfactory customer service, they can and do spread their toxic behavior to others on your team, they may make numerous and careless mistakes, and in the worst cases they may even steal from the company.

In some cases there’s little management can do to get through to an unhappy employee and the only alternative may be to part ways, but there are steps businesses can take to attempt to address the issue(s) driving the unhappiness.

Recent research conducted by the Harvard Business Review found that of the over 160,000 employees they surveyed, about 6 percent classifi ed themselves as having low levels of both job satisfaction and commitment to their employers.

As researchers for the Harvard Business Review went through the data they were able to separate managers who presided over staff that was largely unhappy, and managers whose staff reported higher levels of job satisfaction. Th ey were then able to pinpoint six areas where managers that managed satisfi ed staff excelled, and where managers that managed unsatisfi ed staff were failing.

Based on the survey answers of both satisfi ed and unsatisfi ed employees, Harvard Business Review was able formu-late suggestions in six areas for how businesses can attempt to improve their

relationships with wayward employ-ees:

1. Encourage me more. Harvard Business Review’s data suggests that managers who actively encourage their employees end up managing more satisfi ed

employees. Sounds simple, right? When asked what the most important skill their boss should demonstrate, the top response of the group classifi ed as having the lowest levels of job satisfaction was the ability to “inspire and motivate others.” Managers should make it a daily routine to fi nd positives in their employees’ performances, and then let them know about it — imme-diately and often.

2. Trust me more. We discuss trust a lot at the Better Business Bureau (BBB). Usually you hear us talking about the importance of trust between businesses and consumers, but trust within a company is just as important. Harvard Business Review found that among unhappy employees and their managers, both groups shared a mutual distrust of one another. In cases such as this it’s important for the manager to make the fi rst move by attempting to understand what’s contribut-ing to an employee’s lack of trust, the Harvard Business Review says. After they do that, both manager and employee must “strive for consistency” in how they approach their working relationship. Trust can’t be built in a day, but it can be earned

GOOD BUSINESS

KIM STATES

gradually over time. 3. Take an interest in my development.

Stay engaged with what your employees are doing without appearing to micromanage

them. Th is will help your employees thrive in their role for the company, while

TUCSON BBB ACTIVITY REPORT JULY 2012

Top 10 most complained about industries Complaints Settled

Auto repair and service 7 100%

Air conditioning contractors and systems 6 83%

Correspondence schools 6 100%

Property management 6 100%

New car auto dealers 5 100%

Restaurants 4 50%

Used car auto dealers 4 100%

Collection agencies 4 100%

Car wash and polish fi rms 3 67%

Plant, tree, etc. nurseries 3 100%Top 10 most inquired about industries Inquiries

1. Air conditioning contractors and systems 2,097

2. Roofi ng contractors 1,987

3. Auto repair and service 1,198

4. Plumbing contractors 1,060

5. General contractors 990

6. Used car auto dealers 896

7. Travel clubs 820

8. Correspondence schools 812

9. Pest control services 756

10. Property management 696

Source: BBB of Southern Arizona

CONTINUED NEXT PAGE

Page 13: Inside Tucson Business 08/03/12

AUGUST 3, 2012 13InsideTucsonBusiness.com

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simultaneously letting them know that what they do matters. Harvard Business Review says this rule applies even to underachievers — challenge them to perform better. Being engaged also helps you identify areas of training that can fi ll in performance gaps.

4. Keep me in the loop. It can’t be stressed enough: communication is absolutely crucial to a manager-employee relationship. Harvard Business Review lists three things great communicators do well:

• Th ey share information, and keep everyone well informed.

• Th ey ask good questions, while at the same time inviting opinions and views from others.

• Th ey listen, and not just to the people they like.

5. Be more honest with me. Be honest with your employees about their perfor-mance, even if they’re doing a poor job. Among the group of disaff ected employees many said they felt their boss was not giving them honest feedback. Of course, this point loops back to trust. Th e truth might hurt, but

it’s the only way build trust between yourself and your employees. As the Harvard Business Review put it: “honesty is the bedrock of good relationships.”

6. Connect with me more. Be careful not to exclude your employees. Harvard Business Review’s data shows that favorit-ism is rampant in fi rms: managers will go to lunch more often with employees they like. Th ey’ll talk to them more socially (about children, sports, etc.), and they’ll know certain employees more personally. Th is is often natural among people who share interests, but so is the feeling of exclusion it creates among the less favored. Harvard Business Review suggests that by making even just a small eff ort to “spread their aff ection,” managers can go a long way towards making all their employees feel more included.

Contact Kim States, CEO of the Better

Business Bureau of Southern Arizona, at kstates@

tucson.bbb.org or (520) 888-6161. Th e BBB website

is www.tucson.bbb.org. On Guard appears the fi rst

week of each month in Inside Tucson Business.

DAILY NEWS — DELIVERED TO YOU!EVERY MORNING

Are you interested in business news everyday? SO ARE WE!Sign up today and receive the Inside Tucson Business e-newsletter directly to your inbox everyday. PRO TUCSON. PRO BUSINESS.

GOOD BUSINESS

Page 14: Inside Tucson Business 08/03/12

14 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

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

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PEOPLE IN ACTIONNEW HIRES

SunLife Home Health has hired Lynne Black as director of clinical services. Black has more than 30 years experience as a registered nurse with 25 years in home health care experience.

Home Instead Senior Care - Tucson has hired Christine Takerian as community relations manager. She will be responsible for providing educational workshops and outreach programs to business and community members. Prior to joining the staff at Home Instead Senior Care, Takerian was a recognized speaker, educator and consultant in the healthcare and disability industry.

Marian Porubsky, MD, has joined the University of Arizona Department of Surgery, Division of Abdominal Transplantation and Hepatopancreaticobiliary (HPB) Surgery, as assistant professor. Porubsky performs all solid organ transplant procedures – kidney, liver

and pancreas. Porubsky attended medical school at Komensky University Bratislava in Slovakia. Following his general surgery residency training at the University Hospital Essen, Germany, he completed a research fellowship and a general surgery residency at the University of Illinois at Chicago. He recently fi nished a fellowship in organ transplantation at Indiana University Medical Center in Indianapolis.

ELECTIONS

Jim Lubinski has been elected president of Rotary Club of Tucson. Lubinski will serve as president for the 2012-2013 Rotary year. Lubinski joined the Rotary Club of Tucson in 2003 and has served as

a director of international services and worked on many programs including the Nogales Wheelchair Project and the annual Tucson Classic Car Show.

Mary Davis, senior director of business development and marketing for Tucson Airport Authority (TAA), was recently voted onto the board of directors for SALARA, Southern Arizona Lodging & Resort Association. SALARA is a membership organization focused on fulfi lling the local hotel and resort industry’s education and advocacy needs. Davis manages TAA’s efforts related to commercial/industrial and air service business development, marketing, advertising, public, community and

government relations.

PROMOTIONS

Miraval has announced that Carol Stratford has been named vice president of marketing. Stratford will oversee the reservations and revenue management functions at Miraval in addition to the marketing strategy. Stratford has 16 years of experience in marketing, public relations and communications. Prior to joining Miraval, she spent four years as

director of marketing for The Homestead, a historic, luxury destination spa and golf resort located in the Allegheny Mountains of Virginia. Stratford received a master’s degree in mass media communications from the University of Akron.

AWARDS

The International Society of Antioxidant in Nutrition and Health (ISANH) Scientifi c Committee has awarded Dr. Iman Hakim, dean and professor of the Mel and

Enid Zuckerman College of Public Health, with best Short Oral Presentation at the 2012 International Conference on Polyphenols in Paris in June. Hakim’s winning presentation was titled “Modulation of Oxidative Damage by Green and Black Tea: Role of Smoking and Gender.”

Dr. Francisco Garcia is the recipient of the Victoria Foundation’s Dr. Eugene Garcia Outstanding Latino Faculty award for Research in Higher Education (Research Institutions). Garcia is a professor of public health, chair of the section of family and child health, and director of the Center of Excellence in Women’s Health. The award recognizes a faculty member who has demonstrated

excellence in research and teaching and has provided signifi cant contributions to his academic discipline.

Bobby Rich, of Journal Broadcast Group was awarded the GTL Community Leadership Award. Each year Greater Tucson Leadership (GTL) chooses a recipient for the GTL Community Leadership Award whose commitment to and active involvement in the community exemplifi es proven leadership. Rich was chosen because he has demonstrated extraordinary leadership in the Tucson community. Rich has dedicated his career to radio broadcasting, programming and managing.

Michael J. Curley, an attorney in the Tucson offi ce of the Quarles & Brady law fi rm, has been selected as Outstanding Pro Bono Attorney for the month of July by the Volunteer Lawyers Program. Curley, who practices in the fi rm’s intellectual property practice group, is also an adjunct professor at the University of Arizona James E. Rogers College of Law.

APPOINTMENTS

Kevin R. Yeanoplos, director of valuation services for Brueggeman and Johnson Yeanoplos, is the new chair of the Arizona Board of Appraisal. Yeanoplos was appointed to the board in 2010 by Governor Janice K. Brewer and was recently elected chair by members of the board. Yeanoplos frequently testifi es as an expert witness in state and federal courts and lectures on valuation, litigation and fi nancial analysis issues for other valuation professionals, judges and attorneys in Canada and throughout the United States.

MARY DAVIS MICHAEL CURLEY KEVIN YEANOPLOSLYNN BLACK CHRISTINE TAKERIAN

Page 15: Inside Tucson Business 08/03/12

AUGUST 3, 2012 15InsideTucsonBusiness.com

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MEDIAKatie Couric’s new show launches next month, but not in Tucson By David Hatfi eldInside Tucson Business

To hear some tell it, Katie Couric, former anchor of “CBS Evening News” and co-host of the “Today” show, could become the next Oprah Winfrey when her new daytime talk-show launches Sept. 10. Th e new syndicated show has been snapped up by TV stations in 95 of the nation’s top 100 markets. But not in Tucson.

Th e hour-long show is being distributed by the syndication arm of Disney-ABC and will be shown on many ABC owned and affi liated stations when the network cuts back on an hour of daytime programming in the fall.

In Tucson, ABC-affi liate KGUN 9 has opted instead to fi ll that hour at 2 p.m. week-days with a new talk show by “Survivor” host Jeff Probst.

NBC-affi liate KVOA 4 similarly found it-self looking to fi ll a daytime hour with the cancellation of Nate Berkus’ show but opted to pick up a new show hosted by actress Ricki Lake, who is looking to stage a comeback with her second daytime TV talk show.

Among Tucson stations, some of the biggest changes in daytime syndicated fare are taking place at Fox-affi liate KMSB 11 where Robert Canales, director of sales and station opera-tions, says the station is beefi ng up its daytime block of talk shows. But instead of Couric, KMSB is adding one show hosted by comedian Steve Harvey, that will air at noon weekdays, and the other is hosted by Trisha Goddard, a confl ict resolution expert, that will air at 1 p.m.

Canales says KMSB is also adding a new show to lead-off its afternoon block of court shows at 2 p.m. It’s called “Last Shot with Judge Gunn. Presiding over the courtroom is former Washington County, Arkansas Cir-cuit Judge Mary Ann Gunn off ering people who had been convicted of various drug of-fenses and minor acts an alternative to pris-on. Aside from the imagery, the title refers to people getting a “last shot” at redeeming their lives. It’s not your run-of-the mill small claims, divorce or family squabble court room, Canales says.

Neither CBS-affi liate KOLD 13 or CW-affi liate KWBA 58 are making changes to their daytime line-ups next month.

As for why Couric’s new show didn’t get picked up, local station execs didn’t off er reasons for rejecting it, per se. Th e situation was more a matter of none seeing a reason to pick it up. Especially, as one confi ded, considering the stiff licensing fees ABC syn-dication was asking. Th ey had to, judging from trade reports that have calculated the costs to produce Couric’s show will amount to about $1 million a week — it will pro-duced live every afternoon in New York — and there’s another $20 million that’s sup-posed to go Couric and her executive producer Jeff Zucker, former president and CEO of NBC before majority ownership was bought out by Comcast last year.

Names in news Gina Trunzo has notifi ed offi cials at

KOLD 13/KMSB 11 that she won’t be re-turning as co-anchor of “Fox 11 Daybreak.” Trunzo has been away on medical leave since mid-May. She and Mark Stine had co-hosted the 7-9 a.m. “Daybreak” on KMSB since it was launched on Feb. 1 under a shared services agreement in which KOLD produces news programming for both KMSB and KOLD. Trunzo had been a weather and entertainment reporter at KMSB prior to the shared services agree-ment and was reportedly one of the fi rst on-air personalities KOLD taped after the agreement was made. Th e circumstances surrounding her medical leave have been kept quiet and haven’t even been subject to the usual media gossip. Trunzo and ortho-dontist Dr. Richard Ziehmer were married last October. Debbie Bush, general manag-er of KOLD, expressed sadness over Trun-zo’s departure and said the stations would begin a search for her replacement.

Reporter Jessica Chapin is leaving KGUN 9 to take a job as a digital journalist with the City of Gilbert. Her last day at KGUN will be Aug. 10.

Long-time Tucsonans might remember

Tim Hattrick and Willy D. Loon, who were teamed together as “Tim and Willy” from 1990 to 1993 doing the morning show on KRQ 93.7-FM and setting ratings records for the station. Th ey left KRQ unceremonious as part of an ownership change and moved to Phoenix where they went country, working at one station for three years, before going to another for 10 years and then back to their original station in 2009. Now they’re off the

air again but promising to keep listeners in-formed and entertained online at http://ti-mandwilly.com/ . Although the pair insisted their parting with their latest employer, KMLE, which is owned by CBS, was amica-ble, they believe they were cut because sta-tion management wants to play more music.

K-Love moves transmitterRadio station K-Love KLTU 88.1-FM is now

broadcasting with more power from its new transmitter location in the Tucson Mountains west of downtown. Doug Martin, president and general manager of the Good News Com-munications, says the new site gives K-Love vastly improved reception in northwest Tuc-son and Oro Valley making it comparable to other major FM stations in the market. Th e station had been broadcasting from atop Mount Bigelow in the Santa Catalinas.

Along with the relocation of the trans-mitter, K-Love has boosted power to 15,000 watts from 1,500 watts.

K-Love features a format of adult con-temporary Christian music distributed by Educational Media Foundation.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

Gina Trunzo

Page 16: Inside Tucson Business 08/03/12

16 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

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LOOKING BACKREMEMBERING TUCSON

Bazy Tankersley and her lifetime passion breeding Arabian horses For 70 years, Ruth “Bazy” Tankersley,

owner of Al-Marah Horse Farm has raised and bred more than 2,500 Arabian horses. She loves her purebreds, and the world respects her as one of the fi nest Arabian breeders. Last year, the American Horse As-sociation named her Breeder of the Year.

In the early 1940s, the socialite, a member of the McCormick family in Chicago, came to Tucson with her fi rst husband, Peter Miller after he was diag-nosed with epilepsy.

Bazy had raised her fi rst Arabian as a teenager, so when she came to Tucson she developed a 40-acre horse farm she named Al-Marah, which translates to “a verdant garden oasis.” By the early 1970s, Al-Marah expanded to 110-acres and become known as the world’s oldest privately-owned Arabian horse breeding farm.

With the specifi c goal of breeding a horse with a gentle disposition, Bazy McCormick Miller, as she was known at the time, searched for the world’s top stallion to sire her dynasty. Her foundation stud claimed a lineage tracing back two centuries to the prophet Mohamed Ali the

Great of Egypt. Th e horse’s name was Indraff , a gray Arabian stallion foaled on May 9, 1938, and sired by Raffl es that had been bred in England and imported to the U.S.

“When Indraff walked out of the stable door, he fulfi lled my dreams and defi ned my mental image of the ideal Arabian horse,” Tankersley said.

Indraff sired 254 purebred Arabian foals, and had more than 2,700 grandget or off spring.

Returning to Illinois and then going to Washington, D.C., she continued using the Al- Marah name for farms in Illinois, from 1944 to 1949, and then Maryland, from 1949 to 1975, while she worked in the family newspaper publishing business.

“I was so lonesome for Tucson. I missed the mountains and the desert,” Tankersley recalled. “Whenever I received a copy of Arizona Highways, I would cry.”

Born into the prestigious and politically active McCormick family, Tankersley’s grandmother, Ruth Hanna McCormick, was a Con-gresswoman from Illinois and her father, Joseph Medill McCormick, served in both the U.S. Senate and House of Repre-sentatives. Her uncle, Robert Rutherford “Colonel” McCormick, owned the Chicago Tribune and the Washington Times-Herald, which was later acquired by the Washing-ton Post in 1954.

In 1949, Colonel McCormick put Bazy in charge of his Washington, D.C., newspaper.

“When I took over at the Washington Times-Herald, I met editor Garvin Elmo “Tank” Tankersley. I didn’t know that he would become my future husband,” Tankersley recalled.

As the romance between Tank and Bazy developed, news of the aff air motivated the Colonel to end it. Tank came from a large, but poor family from Lynchburg, Va.

Th e Colonel did not fi nd Tank to be of appropriate status. Th e young couple went undercover traveling by train between Chicago and Washington to see one another. Tiring of the commute, they decided to get married and eloped. In 1955, on his death bed the Colonel acknowledged his mistake in trying to keep the two lovers from marrying.

“Other than studying genetics for two years at Vermont’s Bennington College between 1939 and 1941, I virtually had no education,” Tankersley said.

But that didn’t prevent her from having an appreciation for education. She started two schools in the east and when she returned to Tucson, “I felt that the city deserved a top rated private high school.” In 1980, she founded St. Gregory College

Preparatory School and

appointed Russell Ingersoll as its

principal.From her fi rst

marriage Tankersley had two children, Kristie Miller, a biographer and author of “Ellen and Edith: Woodrow Wilson’s First Ladies,” and Mark Miller, who owns Arabian Nights, an Arabian horse dinner theater in Kissimmee, Fla.

Bazy and Tank had one daugther, Tiff any, born in 1970.

She is emphatic about the subject of disposition when it comes to Arabian horses. Not long ago, her 4 year-old great-granddaughter wanted to ride. “She rode the horse with the best disposition, a stallion.”

Tankersley is noted as a rare and legend-ary breeder. In 1890, Britain’s Lady Anne Blunt and her husband Wilfred purchased an Arabian from Egyptian Ali Pasha Sherif to breed at the Crabbet Stud. When Blunt’s daughter Lady Wentworth died, Tankersley imported the fi nest of their Arabians and brought them to America. She considered these horses as part of her quality Arabian foundation stock, one whose lineage she would never compromise.

Now at the age of 91, Tankersley feels that “Th e best husbandry practice is to let Arabians live with minimum stall time and a maximum amount of time enjoying the company of other horses.”

Do you have a historical Tucson story

to share? Contact Mary Levy Peachin at

[email protected]. Her historical columns

appear the fi rst week of each month in Inside

Tucson Business.

MARY LEVY PEACHIN

Bazy Tankersley

Page 17: Inside Tucson Business 08/03/12

AUGUST 3, 2012 17InsideTucsonBusiness.com

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GET ON THE LISTNext up: Asset management fi rsts, Aeronautical fi rms

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

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

• Aug. 17: Asset management firms, Aeronautical firms

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

• Aug. 31: New car dealers• Sept. 7: Television stations, Radio stationsIf your business fits one of these catego-

ries, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can cre-ate a profile by following the directions.

The Book of Lists is a year-round refer-ence for thousands of businesses and indi-viduals. To advertise your business, call (520) 294-1200.

MANUFACTURING Arizona recycled paper millto shut down as of Sept. 30

A paper mill that helped make Arizona a leader among states in newsprint recycling a decade ago will permanently shut down as of Sept. 30. Catalyst Paper, headquartered in British Columbia, announced Tuesday it is closing the plant in outside the town of Snow-fl ake due to the drop in demand for newsprint and an inability to sustain profi table opera-tions.

Th e plant employs 308 people in a town that has a population of 5,600.

Catalyst acquired the Snowfl ake Mill and Apache Railway Company in 2008 and has continued to supply most of the newsprint in Arizona and the Southwest. John Lun-dgren, print operations manager for the Ari-zona Daily Star, said that although his newspaper is currently using a large per-

centage of paper produced at Snowfl ake, it has plenty of inventory on hand and he ex-pects other West Coast suppliers will be able to meet demand after Sept. 30.

COMMERCIAL REAL ESTATE Eastside retail centernoticed for foreclosure

An investment group that owns Catalina Village Plaza, a retail complex at 7800 E. Wrightstown Road, has defaulted on its loan and has been noticed for public auc-tion in October.

A notice of trustee’s sale has been filed on Kaufman Catalina Village-DE LLC, California-based ownership, that has defaulted on the original $6.9 million loan.

Catalina Village is at the southwest cor-ner of Wrightstown and Pantano roads. The trustee’s notice lists 23 unit addresses at the site that was built in 2001.

The current beneficiary is GSMS 2005-GG4 Wrightstown Road LLC, an affiliate of LNR Partners of Miami Beach, Fla. The sale is being handled by the Phoenix office of Snell & Wilmer.

The auction is scheduled for 1:30 p.m. Oct. 23 at Snell & Wilmer’s Tucson office, 1 S. Church Ave., Suite 1500.

EDUCATION/RESEARCHNew Pima College provost is now on the job

Jerome Migler started his new job Mon-day (July 30) as Pima Community College’s provost and executive vice chancellor.

Migler, who was hired in May, will over-see academics at the college.

Charlotte Fugett, who served as acting provost and executive vice chancellor since March, will return to her position as presi-dent of PCC’s East Campus.

Before coming to Pima, Migler served as the executive vice president and provost of Minnesota State Community and Technical College in Moorhead, Minn.

NEWSMillions in taxes should have gone to Rio NuevoBy Patrick McNamara Inside Tucson Business

It appears that millions of dollars paid by businesses in state sales taxes over at least seven years should have gone to Rio Nuevo, but didn’t.

Like other retail businesses, those within the boundaries of the Rio Nuevo tax incre-ment fi nancing (TIF) district — generally downtown Tucson and along Broadway east to Wilmot Road — are required to fi le with the Arizona Department of Revenue a TPT-1 business transaction privilege, use and sev-erance tax returns document. But the busi-nesses within the TIF district are supposed to include a code on the form so the proper amount of tax money is sent to Rio Nuevo.

Th e trouble is, some businesses either didn’t know about the code or omitted it for other reasons.

“Some have put the code on the forms but they aren’t in the district,” said Tucson Assistant City Manager and Finance Direc-tor Kelly Gottschalk.

Th at makes it diffi cult to pinpoint exactly how much money is involved. Gottschalk es-timates that she and her staff at the city have been able to identify more than $12 million that should have gone to Rio Nuevo, includ-ing $2.2 million that was found in June.

Getting that money applied to the dis-trict is another matter.

To do so, the city has been lobbying the Arizona Department of Revenue to release the money to the district. In some cases the identifi ed funds still owed to Rio Nuevo have gone back to 2005.

With the state this year fi nally looking at a possible budget surplus after years of defi -cits, “It’s a hit to them,” Gottschalk said.

But in working with the Department of Revenue, Gottschalk said there have not been any issues in getting the money.

Voters in 2000 approved the Rio Nuevo TIF district, which basically diverts state

sales tax revenues collected over and above the 1999 baseline year to be used to fund downtown redevelopment.

Tucson’s eff orts at getting the Rio Nuevo district its due would seem to belie the fact that the two entities have been involved in a highly publicized feud, which at times grew toxic.

“I think there is a public perception of the feud,” said Rio Nuevo Board Chairman Fletcher McCusker. “But then there’s the worker bees like Michele (Bettini, the dis-trict operations administrator) and Kelly (Gottschalk) who get the job done.”

Working on that cooperation, McCusker said the district has begun to compile a list of the more than 1,100 merchants in the TIF that are to be contacted individually. He said he and other Rio Nuevo representatives want to educate business operators in the district about how to correctly fi le their state transaction privilege tax forms.

“Th ey’ve all been paying their taxes, it’s just a question of making sure it gets properly allocated to Rio Nuevo,” McCusker said.

He said the district has received permission from the state to search back three years for taxes that should have been paid to Rio Nuevo.

As further indication the sales tax prob-lem persists, Gottschalk said the city has found that as much as $175,000 in construc-tion sales taxes from the Cushing Street Bridge project that was due to Rio Nuevo but has not gone to the district.

Further, SunLink, the modern streetcar project, also poses an issue for district fund-ing, Gottschalk said.

Th at project, which includes laying com-muter train tracks from the University of Arizona Medical Center on Campbell Ave-nue through the university campus and downtown, has a budget of $196 million. With much of the work occurring in the dis-trict, Rio Nuevo stands to benefi t fi nancially by assuring that the contractors and con-struction companies doing the work have properly coded their state tax documents.

Page 18: Inside Tucson Business 08/03/12

18 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

FINANCEYOUR MONEY

Need it or not, consider long-term insurance

Denial or Fear. My discussions with clients regarding long-term care planning often result in the following responses: “I’m just going to drop dead.” “No one in my family ever needed long term care.” “I’m a veteran, the government will take care of me.” And “I will self-insure.”

Or, to the contrary, a couple discloses the devastation to the family when their estate and legacy was lost to the cost of providing long-term care.

First, understand the risk. It is either zero or 100 percent. Either you will need long-term care or you won’t. Statistics tell the story but you don’t know which side of the statistics you will be on.

Let’s look at the facts. Th e American Association for Long Term Care published these statistics from 2010:• Claims by age

60-69: 7.5 percent70-79: 31.5 percent80+: 59.2 percent

• Primary causes for claimsUnder age 65: CancerAges 65-74: Cancer and Alzheimer’sAge 75+: Alzheimer’s

• Long term care claims paidHome care: 42 percentAssisted living: 27.5 percentNursing home: 30.5 percent

• Average cost of care (this is for 2010)Home health aide: $21 per hourAssisted living: $3,100 per monthNursing home: $220 per day; $80,300

annually for a private roomWomen have 10 times the chance of

men of reaching age 85 and are twice as likely to be living alone at older ages. Th ey are far more likely to go to a nursing home and more likely to suff er from Alzheimer’s. Single women represent 41 percent of all claims paid, while married women represent 25 percent.

Some frequent reasons women receive long-term care insurance benefi ts are dementia, cancer, fractures, stroke, osteoarthritis, and chronic obstructive pulmonary disease (COPD).

Options: 2 types of insuranceTraditional long-term care insurance is

much like car insurance. It is built based upon a number of moving parts including: daily benefi t, benefi t period, cost of living adjustments (either simple or compound), elimination period and other options which vary by insurance company.

With traditional long-term care insur-ance you pay premiums and may never need to use it. Premiums are tax-deductible up to a point. Consult your tax advisor.

Asset-based long-term care insurance is a

popular hybrid of life insurance and long-term care insurance that is underwritten for both mortality and morbidity. It’s like self-insuring but provides substan-tially more leverage per dollar. For example, a 60 year

old woman in good health can invest $100,000 into this type of policy and receive an initial death benefi t of $265,000 with a long-term care benefi t of $436,000. Th is would give her 5 years of coverage at up to $6,057 per month. Th e insurance company accelerates the death benefi t to provide tax-free monthly long-term care benefi ts. Th is example includes a simple interest infl ation adjustment of 3 percent annually. Th e client can take back her full $100,000 investment at any time for 15 years with no penalty.

Asset-based long-term care insurance is ideal for high net-worth individuals who would otherwise self-insure or who have money in a certifi cate of deposit or other under-performing investment. Th is type of plan creates a tremendous opportunity to maximize your return on investment. By transferring the money to the insurance company, the company is “on the hook” for life insurance and long-term care protec-tion without jeopardizing access to the funds if needed for something else.

A no-lose proposition is created. You are leveraging up the money 200 to 400 percent. If you never need long-term care, there is an income tax-free death benefi t. If you need long-term care, it is there. If you want to take the money back, there is no penalty for 15 years.

People buy long-term care insurance to protect their assets and because they do not want to become a burden to their children or other loved ones. It is an important consideration.

Surely you will agree, it is better to have it and not need it than to need it and not have it.

Whether you are in denial about the possibility or fearful of it, consider your options and talk to your insurance advisor to determine what is best for you and your future.

Contact Susan L. Moore Vault, president

of Moore Financial Strategies, at susan@

moorefs.com or (520) 296-4464. She also hosts

“Safe Money Strategies” from 6-6:30 a.m.

Saturdays on KNST 97.1-FM/790-AM.

SUSAN MOORE VAULT

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

Company Name Symbol Aug. 1 Jul. 25 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.05 0.04 0.01 0.03 0.50CDEX Inc CEXIQ.OB 0.01 0.01 0.00 0.01 0.10Providence Service Corp PRSC 12.31 12.67 -0.36 8.35 15.94UniSource Energy Corp (Tucson Electric Power) UNS 40.15 40.77 -0.62 32.96 42.10

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 8.43 8.02 0.41 7.97 14.29AMR Corp (American Airlines) AAMRQ 0.51 0.51 0.00 0.20 3.97Augusta Resource Corp (Rosemont Mine) AZC 1.83 1.74 0.09 1.48 4.96Bank Of America Corp BAC 7.22 7.07 0.15 4.92 10.10Bank of Montreal (M&I Bank) BMO 57.11 56.50 0.61 50.95 62.80BBVA Compass BBVA 6.73 5.42 1.31 5.30 9.94Berkshire Hathaway (Geico, Long Cos) BRK-B* 84.62 84.04 0.58 65.35 85.44Best Buy Co Inc BBY 18.07 17.34 0.73 16.97 28.53BOK Financial Corp (Bank of Arizona) BOKF 55.76 56.79 -1.03 43.77 59.59Bombardier Inc* (Bombardier Aerospace) BBDB 3.60 3.71 -0.11 3.30 5.60CB Richard Ellis Group CBG 16.67 15.10 1.57 12.30 21.16Citigroup Inc C 26.78 25.79 0.99 21.40 38.40Comcast Corp CMCSA 33.55 31.36 2.19 19.19 34.00Community Health Sys (Northwest Med Cntrs) CYH 24.48 25.35 -0.87 14.61 28.79Computer Sciences Corp CSC 24.50 22.73 1.77 22.19 33.88Convergys Corp CVG 15.03 14.47 0.56 8.49 15.68Costco Wholesale Corp COST 95.94 93.75 2.19 70.22 97.76CenturyLink (Qwest Communications) CTL 42.12 40.34 1.78 31.16 42.70Cvs/Caremark (CVS pharmacy) CVS 44.84 44.54 0.30 31.30 48.69Delta Air Lines DAL 9.48 9.47 0.01 6.41 12.25Dillard Department Stores DDS 65.32 62.93 2.39 38.99 72.46Dover Corp (Sargent Controls & Aerospace) DOV 53.95 50.94 3.01 43.64 67.20DR Horton Inc DHI 17.27 17.98 -0.71 8.03 19.35Freeport-McMoRan (Phelps Dodge) FCX 33.49 31.43 2.06 28.85 51.86Granite Construction Inc GVA 24.91 25.00 -0.09 16.92 30.49Home Depot Inc HD 51.68 51.07 0.61 28.13 54.28Honeywell Intl Inc HON 58.00 56.80 1.20 41.22 62.00IBM IBM 195.18 191.08 4.10 157.13 210.69Iron Mountain IRM 32.34 31.28 1.06 27.10 34.77Intuit Inc INTU 57.93 56.52 1.41 39.87 62.33Journal Communications (KGUN 9, KMXZ) JRN 5.51 5.24 0.27 2.69 5.72JP Morgan Chase & Co JPM 36.00 35.17 0.83 27.85 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 31.62 31.39 0.23 25.73 36.07KB Home KBH 9.20 9.31 -0.11 5.02 13.12Kohls Corp KSS 49.73 47.86 1.87 42.14 56.66Kroger Co (Fry's Food Stores) KR 22.20 21.25 0.95 20.98 24.83Lee Enterprises (Arizona Daily Star) LEE 1.20 1.15 0.05 0.49 1.81Lennar Corporation LEN 28.97 29.04 -0.07 12.14 31.90Lowe's Cos (Lowe's Home Improvement) LOW 25.14 25.60 -0.46 18.07 32.29Loews Corp (Ventana Canyon Resort) L 39.45 40.30 -0.85 32.90 41.80Macerich Co (Westcor, La Encantada) MAC 58.17 56.60 1.57 38.64 62.83Macy's Inc M 35.06 34.54 0.52 22.66 42.17Marriott Intl Inc MAR 36.35 35.34 1.01 25.49 40.45Meritage Homes Corp MTH 34.57 33.00 1.57 13.68 38.16Northern Trust Corp NTRS 45.05 44.57 0.48 33.20 48.31Northrop Grumman Corp NOC 65.84 63.91 1.93 49.20 66.80Penney, J.C. JCP 21.02 22.00 -0.98 19.06 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 11.04 10.02 1.02 3.29 12.19Raytheon Co (Raytheon Missile Systems) RTN 54.91 55.08 -0.17 38.35 56.92Roche Holdings AG (Ventana Medical Systems) RHHBY 44.14 42.62 1.52 36.50 46.40Safeway Inc SWY 15.58 15.00 0.58 14.73 23.16Sanofi -Aventis SA SNY 40.45 37.85 2.60 30.98 41.13Sears Holdings (Sears, Kmart, Customer Care) SHLD 48.54 48.80 -0.26 28.89 85.90SkyWest Inc SKYW 6.55 6.81 -0.26 6.25 14.32Southwest Airlines Co LUV 9.18 8.47 0.71 7.15 10.05Southwest Gas Corp SWX 44.23 44.12 0.11 32.12 46.08Stantec Inc STN 28.40 26.05 2.35 20.96 32.79Target Corp TGT 60.62 60.36 0.26 45.28 62.18TeleTech Holdings Inc TTEC 15.95 16.05 -0.10 14.04 18.87Texas Instruments Inc TXN 27.63 26.63 1.00 24.34 34.24Time Warner Inc (AOL) TWX 39.60 38.55 1.05 27.62 39.93Ual Corp (United Airlines) UAL 18.17 20.41 -2.24 15.51 25.84Union Pacifi c Corp UNP 121.59 117.39 4.20 77.73 123.78Apollo Group Inc (University of Phoenix) APOL 26.63 28.03 -1.40 26.43 58.29US Airways Group Inc LCC 10.83 11.15 -0.32 3.96 14.51US Bancorp (US Bank) USB 33.32 33.29 0.03 20.10 34.10Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 73.62 72.08 1.54 48.31 75.24Walgreen Co WAG 36.27 34.65 1.62 28.53 38.24Wells Fargo & Co WFC 33.90 33.16 0.74 22.58 34.80Western Alliance Bancorp (Alliance Bank) WAL 8.97 8.92 0.05 4.44 9.60Zions Bancorp (National Bank of Arizona) ZION 18.28 17.88 0.40 13.18 22.81Data Source: Dow Jones Market Watch

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

Page 19: Inside Tucson Business 08/03/12

AUGUST 3, 2012 19InsideTucsonBusiness.com

INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

Stein Mart and Hobby Lobby are on track for a “dramatic entry” at the high-profi le re-development of the northeast corner of East Broadway and Craycroft Road.

In just two months since the site’s re-use plans were announced, the 81,000 square-foot shell of the former Mervyn’s store has been gutted, environmentally cleaned, structurally and operationally renovated, and split into two spaces. Stein Mart is tak-ing about 30,000 square feet on the build-ing’s west side and Hobby Lobby is taking about 50,000 square feet on the east side.

Separately, a new 14,500 square-foot, multi-tenant building also is rising fast that will front the roadways.

“Full build-out of Stein Mart should be done by early November. Th ey’d like to get in early to start racking shelves and mer-chandise for the holiday season. Th is side is under more of a time crunch than the other side,” said Don Switzer III, project manager for general contractor W.E. O’Neil Con-struction Company, 710 S. Campbell Ave.

Hobby Lobby plans to open sometime in early 2013.

Th e transformation of the building will feature a dramatic customer entrance on the south side facing Broadway. A glassed-in vestibule will highlight tall parapets, new arches and stone work accents in a new fa-çade. Several towering palm trees that once stood there have been salvaged.

“You won’t see any of the old wall,” said Switzer.

On the north side, crews are adding new loading docks and a freight conveyor up to the second fl oor for Stein Mart. Th e upper

fl oor will be for inventory storage while the lower fl oor will hold retail space and ad-ministrative offi ces.

Th e separate multi-tenant pad has ten-ants for two of its four spaces. Th e middle two stores have been leased by Mattress Firm and Vitamin Shoppe. Th e hope is that a restaurant will be attracted to one of the other spots.

‘Dramatic entry’ for Stein Mart, Hobby Lobby

THE PULSE: TUCSON REAL ESTATE

7/23/2012 7/16/2012

Median Price $140,100 $151,000Active Listings 4,091 4,083New Listings 306 372Pending Sales 411 390Homes Closed 235 241Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

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

15 YEAR 3.00% 3.125%APR 3.00% 3.125% APR 4.22% 4.22% 3.00%

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

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

7/31/2012

“We are doing the frame out shell here, not tenant improvements. Th e architectural style of the small and big building will look the same, a nice touch,” said Switzer.

Herschman Architects, 2210 E. Fort Low-ell Road, was the project architect.

O’Neil site superintendent Doug Kellet pointed out that many materials from the building and site were recycled. Th e “most obvious” were the store’s shelves for scrap metal.

“Th e concrete was recycled to a crusher to be re-used for road base. A pulverizer crushed and grinded the asphalt as it went over the parking lot,” Kellet said. Th e asphalt grindings were piled on site and will be re-used when the new parking lot is paved.

“Recycling building waste is pretty stan-dard procedure anymore,” he added.

O’Neil hired as many local subcontrac-tors as possible, Switzer said. Th ey meshed with a set group of vendors used by Stein

O’Neil Construction’s Don Switzer shows the soil prep work for load-bearing pillars at the new front entrance.

Workers install the sewer line trench that will serve the new free-standing retail pad.

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Mart and property owner Benenson Capital Partners, New York.

Some of the local companies include Ac-tion Scaff olding, Allan Fire Protection, BW Plumbing, Babby-Henkel Building Special-ties, Cornerstone Electrical, D&J Air Condi-tioning, Dar-Hill, Eagle Roofi ng, Liner Dry-wall, Mirage Plastering, Steel Management, Stonart, Tom White Carpentry, and WG Va-lenzuela Drywall.

Mervyn’s vacated the store at in late 2008 after the California-based retailer failed to fi nd a buyer to take it out of bankruptcy. Th e site was originally a Save-Co, a small Cali-fornia-based department store chain that was bought out by Zody’s that went bank-rupt in 1986.

Stein Mart is a high-end, off -price na-tional retailer. It has one other store in Tuc-son, at 4881 N. Stone Ave. Headquartered in Oklahoma City, Hobby Lobby is a chain of arts and crafts store. Th is is its fi rst store in the Tucson market. Mattress Firm and Vi-tamin Shoppe are both expected to open in early 2013.

Sales and leases• Ferguson Enterprises leased a 12,800

square-foot industrial building at 5455 S. Nogales Highway from Fluoresco Lighting-Sign Maintenance. Th e transaction was handled by Stephen Cohen and Russell Hall, Picor Commercial Real Estate Services.

• Nathan Martin Fireworks leased 8,550 square feet at 7885 E. Golf Links Road from Gin Lee Trust, represented by Greg Furrier and Jeff Zellet of Picor.

• Freedom Smoke USA International leased 4,025 square feet at 4564-4570 E. Broadway in Midstar Plaza from from Mid-star Partners LLC, represented by Nancy McClure, CBRE. Th e tenant was represented by Alan Tanner and Paul Schloss, CBRE.

• Sonora Behavioral Health Hospi-tal leased 3,880 square feet at 2001 W. Or-ange Grove Road in Desert Life Medical Plaza from Healthcare Trust of America, represented by Howard Schwiebert, Plaza Companies. Th e tenant was represented by Bruce Suppes, CBRE.

• Hanley Wood LLC leased a 3,382 square-foot offi ce building at 3275 W. Ina Road from Caldor Investments of Arizona. Th e tenant was represented by Russell Hall and Stephen Cohen of Picor.

• Pita Jungle Oro Valley LLC leased 3,016 square feet at 7090 N. Oracle Road in La Toscana Village from JT La Toscana LLC, represented by Shannon Murphy, CBRE. Th e tenant was represented by David Long and Brian Johnson, Cor Realty Services, Phoenix.

Email items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.

Page 20: Inside Tucson Business 08/03/12

20 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

I’m so glad my main sources for news are printed newspapers, the 5, 6 and 10 p.m. newscasts on network TV, occasional radio broadcasts and the online platforms of bona fi de news organizations. It saves me so much time.

Notice I left out the 24-hour cable news channels and their brain disen-gaged lip-fl appers. Talk about a waste of time.

I worry, though, that the mentality behind those channels may be creeping into the news sources I’ve come to trust.

How else to explain investigative reporter Brian Ross on ABC News’ live coverage of the movie theater shootings in Aurora, Colo., last month when he blurted out, “Th ere is a Jim Holmes of Aurora, Colorado, page on the Colorado Tea Party site as well, talking about him joining the tea party last year. Now, we don’t know if this is the same Jim Holmes”?

Ross had been introduced by “Good Morning America” host George Stephanopoulos, saying he had something that “might be signifi cant.”

As we now know it wasn’t signifi cant at all. Th e Jim Holmes who is in the Tea Party is a man in his 50s and the James Holmes who was said to have done the shootings was in his 20s.

I didn’t see Ross’ blunder as it happened. As I said I try to avoid too much live continuous TV coverage of events. When I want breaking news I’ll try to fi nd it online from bona fi de news organizations. Th e question now arises, can I — can anyone — keep ABC News in the category of bona fi de.

Ross failed basic fact checking.I remember back on that horrible day Jan. 8, 2011, when a

similar shooting in Tucson attracted live national TV coverage, including numerous reports saying Gabrielle Giff ords had died.

I also remember reporters at KOLD 13 telling me that News Director Michelle Germano insisted they not report that information unless it could verifi ed from a knowledgeable source.

KGUN 9 also held off on reporting the inaccurate informa-tion and something Forrest Carr, KGUN’s news director, said to me at the time has stuck with me. “We need to be the news organization people can turn to fi nd out if rumors are true.”

ABC News President Ben Sherwood told a meeting of TV critics that what Ross did “was an unfortunate mistake.” But at the same time he wants to stand by another ABC News reporter, Mark Mosk, who was insisting Arlene Holmes, the accused shooter’s mother, was referring to her son when she said “you have the right person,” indicating she may have known her son had issues. Th e family has insisted she was referring to herself.

Brian Ross and Mark Mosk work for the same organization under the same circumstances. As viewers how can we believe either is accurate? And ABC spends good money trying to be a legitimate news operation.

It’s astounding how much time I save in my life not watching or worrying about misinformation — and just plain drivel — that comes from the 24-hour TV news channels.

Contact David Hatfi eld at dhatfi [email protected]

or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Avoiding cable newssaves so much time

EDITORIAL

Anaheim could learn from Tucson Last week, Anaheim in California’s Orange

County and home to Disneyland, erupted in vio-lence. Th e catalyst was the fatal shooting of two young Hispanic men the previous weekend.

According to reports, it was the result of years of festering ethnic and socioeconomic resentment.

In essence the issues in Anaheim come down to the fact that while Hispanics now account for 53 percent of the city’s population, those num-bers aren’t refl ected in how they’re represented at city hall or on the police and fi re departments.

Whenever events such as these occur it’s worth an inward look to try determine if some of the same circumstances could manifest locally.

Th e Tucson region also has a high percentage of His-panic population, 41.6 percent inside the Tucson city limits, 78.5 percent in South Tucson and 34.6 across the entirety of Pima County, according to the 2010 Census.

Contrary to what appears to be the situa-tion in Anaheim, Hispanics in Tucson do have power. Consumer spending by Hispanics is a signifi cant factor in the region’s economy.

As far as representation is concerned, there is no question Hispanics have political power in Tuc-son — and have held power for a long time.

Th ere are those who argue Hispanic political power has become so signifi cant that there are two distinct lines of political power; one geographically rooted in the politics of the south side and South Tucson and the other more or less based on Tucson’s west side.

Nominally, the leaders of the two political power lines are Dan Eckstrom, former mayor of South Tuc-son, and U.S. Rep. Raúl Grijalva, D-Ariz. Th ey sat beside each other for 13 years on the Pima County Board of Supervisors until Eckstrom retired in 2003 and Grijalva decided to run for Congress in 2002.

Eckstrom and Grijalva have been replaced by

Ramón Valadez and Richard Elías, respectively. Th e two lines of political power have had their dif-

ferences over the years, much of it having to do with the competition to secure the most for their constituents.

It’s rare that someone has been able to cross the two lines.

Tucson City Councilwoman Regina Romero be-ing one of those rarities when she managed to receive the endorsements of both Eckstrom and Grijalva when she ran for re-election last year.

In Anaheim, Alejandro Moreno, a member of Los Amigos of Orange County – the dominant Hispanic advocacy group in the region – and an activist for Hispanic causes in Orange County for 25 years, told reporters “the people here who hold the power, don’t want to let it go, and Latinos have fi nally had it.”

At a meeting last week with Anaheim Mayor Tom Tait, Moreno said offi cials said the right things and were believable in their actions and motivations.

“Th e mayor said he wanted relations between ethnic groups to be kinder,” says Moreno.

“I raised my hand and asked him if he knew the Spanish word for that. He didn’t, nor did an-other city council woman. “I think their hearts are in the right place, but they just don’t know how.”

With Richard Miranda as city manager and Ro-berto Villaseñor as chief of police, Tucson isn’t lacking for high-ranking Hispanics in offi cial positions. Match that with the political muscle that exists and no Hispanic Tucsonan should ever feel that he or she isn’t represented.

Page 21: Inside Tucson Business 08/03/12

AUGUST 3, 2012 21InsideTucsonBusiness.com

OPINIONBUSINESS INK

As Midwest drought drags on, using corn in gas is hard to swallowWhat happens when heat-stressed corn

tassels pollinate poorly? Th e bitter answer may soon pop up at your grocery store.

Bread: $5 a loaf? Milk: $6 a gallon? Eggs: $8 a dozen? As harvest time nears, there are fears that food infl ation is in our future due to the devastating drought in the Midwest.

Uncle Sam says about 40 percent of the nation’s corn crop is in jeopardy. Th e worst dry spell in decades has turned fi elds of bio-enhanced beauty into zones of natural disaster in 1,000 counties in 26 states.

Corn prices are at new highs, having sprouted from about $5 a bushel in April to almost $8 a bushel now.

It doesn’t take an agri-econ scientist to calculate the impact of higher corn prices on food prices for people. And livestock feed for pork, beef and poultry. And ethanol for gasoline.

Ethanol? Can’t connect the kernels? Th is issue is a tangled “maize” of controversy.

First off , ethanol is made mostly from corn. A 2005 Congressional energy bill requires all gasoline to be blended with ethanol. So during this epic drought, less land is available for growing food.

I’m no ethanol ethicist but the federal government’s “fuelish” corn policy is problematic.

It’s an old, complex, divisive debate.

Th ere are bushels of pros and cons heard from all rows, including farmers, car manufacturers, environmentalists, foreign oil, tax breaks, big business, unin-tended conse-quences, and food consumers.

Since the 1980s, the feds have paid out over $20 billion in ethanol-related subsi-dies. Th e main tax credit, some $6 billion just last year, went to refi neries to mix ethanol with gasoline.

To their credit, Congress let the tax credit expire last December. Immediately, that cut $6 billion from the federal defi cit.

Not so smart was leaving the ethanol mandate in place, the law that diverts corn into car engines. Last year, 13 billion gallons of ethanol were mixed. Th is political mandate creates the market demand, not consumers.

For farmers and “blenders,” the law has more value than the tax credits. By 2022, America’s Energy Independence Act of 2007 requires refi ners to mix 36 billion

gallons of ethanol into gasoline.Clean-air environmental benefi ts aside,

the fed’s corn-fuel policy is a taxpayer and consumer rip-off . At the pump, ethanol tanks and costs more money.

With ethanol gas, MPGs (miles per gallon) crash. Th is fact is not in any scientifi c dispute. Offi cially, the U.S. Environmental Protection Agency puts the average MPG reduction at 2 to 3 percent in fuel economy.

Unoffi cially, independent researchers have concluded that mileage losses could be double the government’s fi ndings. From day one, whatever the numbers really are, Uncle Sam has acknowledged the sacrifi ce of MPGs.

In the Tucson area, state law mandates a 5 percent ethanol blend from October through March. Th e objective is certainly worthy and politically correct: to reduce vehicle emissions and foreign oil imports.

According to state statistics, Arizona motorists consume some 3 billion gallons of gasoline a year. At the low end of the 2 percent MPG-reduction equation, the etha-nol edict causes drivers to burn an extra 60 million gallons of gas. Th e higher range equates to 90 million gallons wasted.

Yes, the zeros are in the right place. Six-oh million gallons.

Simply put, for every 50 fi ll-ups, one of

those tankfulls is the price you pay to Uncle Sam for this petro-program. And for environ-mentalists who can do the math, more trips to the gas station result in how many more tons of greenhouse gas emissions?

Th is current corn crisis has highlighted the unintended consequences of an outdated public policy that also is poor environmental and economic policy. Th e drought presents an opportunity to consider ending the era of ethanol gas, especially since cars and trucks are much more fuel effi cient and cleaner than 30 years ago.

As the Midwest continues to bake, it’s in the best interests of all to pray for rain. End the drought before it slams us at the supermarket checkout.

As we join the cornhuskers in a plea for rain, don’t overdo it. If our collective concerns bring too much rain too fast and too hard, a violent hail storm could permanently damage all those corn tassels struggling to pollinate.

Corn’s priority is at the top of the food chain, not in the bottom of our fuel tanks.

Contact Roger Yohem at ryohem@

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

appears biweekly and weighs in on local

political, social and business issues.

ROGER YOHEM

SPEAKING OUT

An informed electorate is the goal of Speak Out Arizona Retired Supreme Court Justice Sandra

Day O’Connor was in Tucson last month to inspire civility and civic engagement.

Justice O’Connor told of how she and her husband had built a sun-dried adobe house using mud from the Salt River bed. When she was in the state Legislature, she would invite her colleagues from both political parties to her home for Mexican food. As they ate, they would listen to one another and discuss issues in a civil manner. Th ey wanted to work together to move Arizona forward.

When O’Connor was appointed to the U.S. Supreme Court, she had to sell the adobe house in Paradise Val-ley. A later owner wanted to tear the house down but public opinion pre-vailed. Th e house was spared and moved to Papago Park in Tempe.

O’Connor suggested the house could be a place where “civil talk leads to civic action.” Th us the non-profi t, nonpartisan “O’Connor House Project” was born.

Th e latest O’Connor House project is “Speak Out Arizona.” It’s a civic engage-ment eff ort to get Arizonans registered and out to vote. Elva Coor is chairing the endeavor, and she has successfully fostered

state-wide collabo-ration among civic organizations.

According to the Center for the Future of Arizona, a Gallup poll showed that Arizonans are not as well informed on issues as people in other

states. Arizona ranked 43rd in voter turn-out in the 2008 Presidential election and 40th in the nation for voter registration.

“Speak Out Arizona,” wants “the informed participation of all citizens. With-out a fully informed electorate and greater voter participation in all elections — pri-mary elections in particular — much need-ed policy changes are not likely to occur.”

Th e long-term goal is “to transform Ari-zona into a top 10 state in informed voter participation in the 2016 Presidential elec-tion and to stimulate higher levels of civic participation in each Arizona community.”

Major employers attending the O’Connor event in tucson shared some of their strategies for civic en-

gagement in their workplaces. Tucson Electric Power president

David Hutchens said voter registration forms are available in all new employee packets. Hutchens also said TEP has had forums for employees and their friends and families featuring county Board of Supervisors candidates.

Mara Aspinall, president of Roche Group’s Ventana Medical Systems, said a voter registration booth is on its Oro Valley campus for the com-pany’s 1,400 employees. “We can’t complain if we don’t vote,” she said.

How can Arizona other businesses and organizations become involved? Th ey can support the “Speak Out Arizona” project by requesting a copy of the initia-tive’s video and PowerPoint presenta-tion to show at employee meetings.

Businesses can schedule an offi cial voter registrar to organize a registration

booth at their places of employment. Both Jim Click Automotive and Carondelet Healthcare have already done this. Th e Tucson Hispanic Chamber of Commerce is registering voters in neighborhoods.

Voter registration can also be orga-nized at company health fairs and sum-mer picnics. Pima County and the City of Tucson held voter registration drives at their health benefi ts fairs, accord-ing to Tucson Medical Center Senior Vice President Linda Wojtowicz.

Employee newsletters, intranet com-munications, and listservs can include voter registration information. Pima County citizens can register online at www.recorder.pima.gov/regvote.aspx .

Th e Arizona Secretary of State’s offi ce publishes a voter guide of the candidates and issues. It will come to registered voters by mail in the fall. Arizonans can contact the website at www.azsos.gov/election/Voter registration.htm

Contact Carol West at [email protected].

West served on the Tucson City Council from

1999-2007 and was a council aide from 1987-1995.

CAROL WEST

gagement in their workplaces

BIZ FACTS

Learn more about the O’Connor house at www.oconnorhouse.org

Page 22: Inside Tucson Business 08/03/12

22 AUGUST 3, 2012 INSIDE TUCSON BUSINESS

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

STAFFPUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

STAFF WRITERROGER [email protected]

STAFF WRITERPATRICK [email protected]

STAFF RESEARCHERCELINDA [email protected]

WEB PRODUCERDAN [email protected]

LIST COORDINATORJEANNE [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]

CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

REPORTER INTERNKAITY [email protected]

InsideTucsonBusiness.com

Next week’s poll: Do you support extending Sabino Canyon Road south to Kolb Road?

• Letters to the editor — Opinions on business-related issues or coverage of is-sues by Inside Tucson Business are encour-aged 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. Let-ters 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.

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OPINIONGUEST OPINION

Say ‘yes’ to the F-35 – the sound of freedom over TucsonIn the days ahead, Tucson will have an

unprecedented opportunity to bring sub-stantial, lasting economic benefi ts to our community – an opportunity that would enable the people of the Tucson region to achieve the greater security, peace of mind, and prosperity we so desperately desire.

As you may know, Tucson International Airport is being considered as the site to host the innovative new F-35 Lightning II international pilot training program. Th is honor would be an exceedingly well-deserved compliment to our commitment to community. At a time when families and businesses across the state and across the country are fi ghting to survive in the face of a challenging economy, having the train-ing program would yield clear fi nancial benefi ts and long-term economic vitality.

Th e F-35 represents a signifi cant step forward in our ability to keep America secure in the near term and long into the future. As a result of unprecedented technology and unparalleled fl exibil-ity, the F-35 will revolutionize the capa-bilities of the Western alliance fi ghter fl eets. Th e Lightning’s advanced stealth capabilities and fully integrated sen-sor system will enable F-35 pilots to fl y deep into hostile airspace undetected, engage, disrupt, and defeat those who threaten us, and return home safely.

Without ques-tion, the F-35 is a fundamental asset in our national security arsenal.

Th e F-35 off ers a powerful local impact as well. If the program came to Tucson, it would bring with it tremendous

economic value. Th e increase in military personnel and their families and the con-tinual fl ow of new visitors would put crucial dollars directly into our local economy.

We would also reap the direct benefi t of a modernized Tucson International Airport, which will be required if the site is selected to host the training. Imagine the real and tangible advantage – both to our economy and to our quality of life – these changes would bring to our community.

Imagine the renewed prosper-ity, progress and potential.

Th is program is also creating advanced-technology aerospace careers that give American workers the training and skills they need to build a better future for them-selves as they strengthen our economy and empower us to compete more eff ectively in the 21st Century global economy. Even

at its current low rate of produc-tion, the F-35 is already signifi -cantly enhancing the U.S. economy. With more than 1,350 suppliers in 45 states, the F-35 program is directly and indirectly supporting jobs

for more than 133,000 people with a total economic impact of $17.7 billion this year alone. For Arizona, that includes more than 1,100 direct and indirect jobs and almost $92 million in total economic impact.

True, some in our community are uneasy about the noise they believe would be created from the F-35’s powerful engine. We respect their concern, and we want to take this opportunity to address it.

In 2008, Th e Joint Strike Fighter Program Offi ce released study results that showed that the noise generated by the F-35 is about the same as the noise generated by today’s current fi ghter aircraft. Th ese results were based on the most comprehensive set of acoustic data ever gathered on a military aircraft. To date, not a single noise com-plaint about the F-35 has been received at the bases from which the F-35 operates.

Yes, we said zero. In addition, the

United States Air Force can mitigate the level of noise using various noise abatement pro-cedures. In most cases, the F-35 will not require after-burner takeoff s.

It’s often said that it doesn’t take a rocket sci-entist to realize the benefi ts of rocket science. In this case, the F-35 program would bring high-tech, high paying, careers to Tucson and unleash a fl ood of economic activity. It would give us the privilege of hosting a program that will increase the eff ectiveness and safety of our men and women in uniform.

Let’s join together to say “yes” to this opportunity as we work together to cre-ate the safer, more secure and prosper-ous future the people of Tucson deserve.

Dr. Satish I. Hiremath is mayor of Oro

Valley, Ed Honea is mayor of Marana and

Duane Blumberg is mayor of Sahuarita.

SATISH HIREMATH ED HONEA DUANE BLUMBERG

Is it a good idea for Oro Valley to establish an economic expansion zone?

Yes 72% No 28%

, y

Page 23: Inside Tucson Business 08/03/12

AUGUST 3, 2012 23InsideTucsonBusiness.com

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