inside tucson business 1/25/2013

Forecasting frenzy Real estate predictors to present prognosis

9

Streamline, simplify, reform some more10 proposals made to improve state’s sales tax system

Page 5

Th e mission to evade detectionThe story of Pedro Morales, an undocumented worker, on his return to Mexico

Page 4

Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • JANUARY 25, 2013 • VOL. 22, NO. 34 • $1

DUFFER’S DELIGHT

PAGE 10

Kino Springs course offers golfers a change of pace

Education standards will help economic development, business leaders say

By Julia Taylor Cronkite News Service

Arizona’s newly adopted Com-mon Core Standards for education will produce a workforce better versed in math and critical reason-ing skills and it’s critical for educa-tors to have the necessary training to implement the standards, say busi-ness leaders.

“If you don’t have a good set of requirements, you don’t have a good system,” said Ron Carsten, former chief engineer at Raytheon Mis-sile Systems, who spoke earlier this month to a joint session of House committees on education, higher education and commerce, encour-aging the lawmakers to provide the necessary funding, adding, “You

can’t just mandate it.”Cathleen Barton, southwest re-

gional education manager for Intel Corp., said the rigorous expectations set forth in the Common Core cur-riculum will allow Arizona’s busi-ness community to compete on a global level.

“Th is is about an economic devel-opment problem and an opportunity in which case education is part of the

solution, as opposed to this being an education problem that Common Core is going to solve,” Barton said.

Some lawmakers said they’re concerned that if problems arise in the Common Core curriculum stan-dards, the business community will not stand behind the plan, fi nancial-ly or politically.

State Rep. Eric Meyer, D-Paradise Valley, said he is concerned the high student-teacher ratio brought on by staffi ng cuts, coupled with a decline in education funding, will make it diffi cult for schools to implement the Common Core Standards.

“What are we going to get from the business community?” he asked. “We can’t buy computers, we can’t hire teachers, we can’t raise the tech-nology for Wi-Fi in the classrooms, we can’t have the data systems with-

out funding.”In response, Glenn Hamer, presi-

dent and CEO of the Arizona Cham-ber of Commerce and Industry, said, “We will be there as a business community to advocate on behalf of funding for the Common Core Stan-dards.”

Carsten, the former Raytheon engineer, said if the Common Core system were to come under attack, “my camp would stand up and make noise.”

In an interview, Carsten said Ray-theon and other Arizona companies have a strong investment in science, technology, engineering and math education, which he said extends beyond education to inspiration.

“Our children have to care about it before they can go off and do it,” he said.

Ron Carsten

Julia

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Mike Mallozzi, brewmaster at Borderland Brew-ing, prepares equipment for a new batch of beer.

Local craft-brewing industry takes off

Gordon Bates photo | Illustration by Andrew Arthur

PAGE 3

2 JANUARY 25, 2013 INSIDE TUCSON BUSINESS

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Nigel Knoy, an employee at Borderlands Brewing Co., cleans some of the company’s new brewing equipment. Borderlands has expanded its brewing capacity nearly ten-fold in its fi rst year.

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NEWS

Success fl ows for Tucson brewers

By Patrick McNamaraInside Tucson Business

It came as little surprise to Myles Stone that Tucson had a largely untapped market for craft-brewed beer.

But it was a surprise that demand for his fl edgling Borderlands Brewing Co.’s beers would so quickly outpace supply.

“Th ere hasn’t been a day we haven’t been sold out since we opened,” Stone said.

Stone, along with partners Mike Mal-lozzi and Blake Collins, opened their mi-crobrewery and taproom at 119 E. Toole Ave. downtown in late 2011.

Stone said they started the venture with

just $2,000 in cash. Since then, the popu-larity of Borderlands has grown exponen-tially, playing host to numerous food truck events, parties, art exhibits and even a wedding. All while supplying keg beer to several downtown and regional bars and restaurants.

Today (Jan. 25), the Borderlands crew plans a grand reopening event to celebrate the completion of their expanded brewing facility, which would increase their capac-ity by more than 10 times.

Th e growing success of Borderlands, which has coincided with downtown’s re-naissance, exemplifi es a trend in the state’s craft brewing industry.

A 2012 Northern Arizona University

study of the state’s craft brewing indus-try showed that the once novelty brew pub and microbrewery sector has begun to transcend cult status to become a real force.

Th e study, conducted by NAU’s Hospi-tality Research and Resource Center and the Arizona Rural Policy Institute for the Arizona Craft Brewer’s Guild, found that the craft-brewed beer sector contributed a $278 million impact on Arizona’s econo-my in 2011.

Craft brewers in Arizona produced more than 119,000 barrels in 2011, a 22 percent increase over 2010, according to the study. In units of beer measurement,

CONTINUED ON PAGE 6

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787 battery issues promptvisit to Oro Valley fi rm

An Oro Valley-based maker of chargers for batteries used on the Boeing 787 Deamliner received a visit this week from investigators of the National Transportation Safety Board trying to determine what is causing the battery issues that prompted the U.S. Federal Aviation Admin-istration (FAA) to order the airliners grounded.

On Tuesday (Jan. 22) authorities visited Securaplane Technologies Inc., 10900 N. Stal-lard Place, to test and examine the charger and download memory from the controller for the auxiliary power unit.

Fiona Greig, a spokeswoman for Secura-plane, told Reuters the company had been invited to “contribute to the investigation pro-cess” and planned to fully support it. “In line with the NTSB’s practices, however, it would not be helpful to that investigation to comment further,” she said in a statement provided to the news service.

A Jan. 7 fi re aboard an empty Japan Airlines 787 at Boston Logan International Airport took fi refi ghters 40 minutes to extinguish. Investi-gators, who had initially thought the fi re was caused by overcharged batteries, later ruled that out.

Th ere was no immediate comment from the NTSB after the visit to Securaplane. Th e inves-tigators moved on to Pratt & Whitney Engine Services in Phoenix, which manufactures the auxiliary power unit (APU) used in the 787. Se-curaplane’s charger is a component in the APU.

Securaplane is a subsidiary of Meggitt Plc, Great Britain. Th e company began working on the charger in 2004. In 2006, a lithium-ion bat-tery used in testing exploded and sparked a fi re that burned an administrative building to the ground and caused millions of dollars in dam-ages.

An investigation into that fi re determined the cause was the setup of the test, not the de-sign of the battery or the charger.

Earlier this month, Securaplane announced it is planning to move from its current location to a new 55,000 square-foot offi ce and manu-facturing facility in Oro Vallley’s Innovation Park, which is also home to Roche Group’s Ven-tana Medical Systems and Sanofi . Th e move is being planned for late in the year.

On Jan. 16 the FAA ordered that airlines stop fl ying the 787 while it investigates the risk of bat-tery fi res aboard the technologically-advanced airline after three reported incidents. So far, 50 of the 787 Dreamliners have been delivered to airlines. Almost half are being operated by two Japanese airlines, Japan Airlines and All Nippon Airways. United is the only U.S. airline operating the 787. It has six of them.


NEWS

Helping an undocumented man evade detection — so he could return to Mexico By Keith RosenblumInside Tucson Business

NOGALES — Th e mission is to help a Mexican friend, an undocumented work-er from Oaxaca, leave Arizona. We are walking south on Morley Avenue, just 15 feet from Mexico. It is is the end of a 20-year stay for Pedro Morales, 43, and there is a special irony in the task at hand.

If we pique the interest of offi cers from the Border Patrol, U.S. Customs & Border Protection or the Santa Cruz County Sher-iff ’s offi ce, they can ask Morales for iden-tifi cation and proof of his legal presence in the United States. When Morales can-not present proof that he is legally in the U.S., he will be arrested and sent to fed-eral incarceration facilities at Eloy. When an undocumented worker is held there, it’s often months before he’s released.

Morales’ goal? Get back to Mexico and put the United States behind him. Th ose 15 feet might as well be 15 miles.

Months of conversations have gone into today’s movements. Th is is, in many ways, a sad denouement for a man who came to the United States with a wife and six-year-old, all undocumented, in 1993. At that time anything would have been better than the future off ered Morales in his home town, the village of Loma Lin-da. Morales had high hopes for his wife, Maria Luisa, and their son.

By many metrics their stay in the U.S. was successful. Morales was a talented and energetic landscaper. He was law-abiding, even while having broken the law to come to the U.S. He chose to work on his own instead of borrowing a Social Security number or working with false documents. He bought his own electric pruning shears, leaf blower and other tools, and developed a circle of custom-ers. He prepared promotional materials, business cards and knocked on doors.

Morales had faithfully gone to a West-ern Union offi ce in Tucson and sent giros (money orders) to aging and ailing par-ents. Siblings, nieces and nephews could buy new clothes and study because of his largesse. But the role of being a provid-er-from-afar had come at considerable personal cost. Diabetes, then a drink-ing problem, then marital problems had riddled the stay. At one point, Morales found himself living in his pickup truck.

Th e ride from Tucson to Nogales was upbeat but tense. Two other friends, Car-los and Ramio, and I are optimistic Mo-rales will make it back into Mexico, but what if he doesn’t? What if they ask him for identifi cation? What if we were to be

pulled over on our way to Nogales? None of us is an expert on SB 1070, Arizona’s law on undocumented people being in the state. None of us is familiar with the intricacies of federal law. Are we breaking a law at one level or another?

Th ose 15 feet again.Mexico is within sight, smell and earshot.

If Morales had the ability, he could simply run for the border. But he is frail. And a bor-der that was once almost free of vigilance for those headed south is now often a sea of law enforcement uniforms.

Vehicles headed to Mexico are stopped at border crossings as a host of federal and local offi cers look for weapons, ammuni-tion, undeclared cash and — remarkably — undocumented Mexicans. If a federal agent

cannot stop a car for his own motives, he can ask a colleague from the Nogales Police Department to stop it for something as basic as a repair. Th ere were times during Christ-mas break in December it would take up to 30 minutes to leave the U.S.

We have worried for weeks what would happen if there was vigilance at the cross-ing. An offi cer is free to ask for identifi cation for any reason; there need not be the legal benchmarks of “probable cause” or “rea-sonable suspicion” or anything else.

We have chosen the Morley Avenue pe-destrian gate instead of the more popular Dennis DeConcini Port of Entry, a block away, because the pedestrian-only cross-ing is the way most locals from Nogales,

Due to the nature of the story, the only person we’re going to identify by name is Pedro Morales. Otherwise, we’ll just describe the other two men as his friends who helped him get across.

Keith

Ros

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CONTINUED ON PAGE 6

Tucson unemployment rate ticks up to 6.9%

Tucson’s unemployment rate jumped up in December — one of four months in 2012 that was up — off setting a higher than normal increase in new jobs created in November, ac-cording to the Arizona Offi ce of Employment and Population Statistics.

Tucson’s December unemployment rate was 6.9 percent, up from 6.6 percent in No-vember.

Despite the increase in the rate, more Tucsonans were on a payroll in December than in any other month of 2012. According to state offi cials, 364,700 Tucsonans were employed in December, up from 362,900 in November. Over the course of the year, the monthly average number of working Tucso-nans was 356,700.

Tucson ended 2011 with an unemploy-ment rate of 7.8 percent.

Arizona’s statewide unemployment rate for December 2012 was 7.9 percent, up from 7.8 percent in November and 9.0 percent in December 2011. Th e statewide unemploy-ment is adjusted for seasonality. Th e Tucson unemployment rate is not.

Tucson gas pricesare inching upward

Continuing a trend that started at the be-ginning of the month, Tucson gas prices con-tinued to inch upward this week to an aver-age of $2.95 per gallon for regular, according to AAA Arizona’s weekly survey. Th e price is up about 3 cents per gallon over the last week and up about 6 cents per gallon since the end of December.

AAA reports that price changes are dif-ferent in diff erent parts of the country. While Arizona prices have increased slightly, the usually high prices in California have fallen.

Pima County calls off plans for bond election

Plans for Pima County to seek voter ap-proval this fall for what’s been billed as in-vestment in the region’s economic recovery will be postponed until November 2014 at the earliest.

Pima County Administrator Chuck Huck-elberry told the Bond Advisory Committee on Jan. 18 that the tepid economic recovery combined with a seeming reticence of voter support last election makes a 2013 election impractical.

In October Huckelberry issued a Econom-ic Development Action Plan calling for $197 million in improvements, including $90 mil-lion for roads, $37 million for tourism facili-ties, $30 million in economic development infrastructure improvements, $30 million specifi cally for the area south of Tucson In-ternational Airport, in part to provide a buff er surrounding Raytheon Missile Systems plant, and $10 million for the University of Arizona Science and Technology Park.


NEWS

Business, cities closer to accord on retail tax reform processBy Patrick McNamaraInside Tucson Business

Most retailers know it but most of their customers probably don’t: Th ere is no sales tax in Arizona.

Instead, the state has what it calls a trans-action privilege tax. It’s a tax levied on the seller of goods based on the gross proceeds derived as income from sales. A traditional sales tax is something the purchaser pays on goods or services.

It’s a distinction without a diff erence, perhaps, since the consumer ultimately pays the tax either way.

In any event, Arizona’s tax on sales causes enough logistical and accounting issues that reform is a signifi cant talking point in the current session of the Legislature, though no bills had been introduced as of mid-week this week.

Th e Arizona Tax Research Association is pushing reforms to simplify what president Kevin J. McCarthy calls “the most adminis-tratively complex sales tax system in the country.”

Under the current system, the Arizona Department of Revenue collects taxes for the state, its 15 counties and 73 municipali-ties. Th ere are 18 cities that collect their own taxes and perform their own audits, includ-ing Tucson.

Last year Gov. Jan Brewer organized a task force to work on simplifi cation. In De-cember it issued 10 reform proposals.

Th e reforms cover various issues about

taxation, but in terms of retail taxes, the task force recommended implementing stan-dardized administration for the transaction privilege tax, standardized defi nitions, the creation of an online portal for payments and elimination of many of the nearly 100 deductions and exemptions.

“We’re looking for the Legislature to study these recommendations,” McCarthy said.

He compared the process merchants are currently required to navigate to paying property taxes. Except that when owners pay their property taxes the check goes to one entity, usually a county treasurer, who then remits the money to all the taxing au-thorities such as a municipality, county, school district and any other special dis-tricts.

But in the case of transaction privilege tax, a business must remit tax payments to several governments and track numerous deductions.

As a major step toward simplifi cation, McCarthy said his group would like the state to implement the proposal for a one-stop online portal for paying the transaction privilege tax.

“When you look around the country, ev-erybody else thinks that’s OK,” he said.

But in the past, advocates for reform and groups such as the League of Arizona Cities and Towns, which represents municipali-ties, were unable to reach a resolution. In particular, cities and towns have had con-cerns that previous reform eff orts really

amounted to tax breaks by another name, resulting in their jurisdictions re-ceiving less revenue.

Th is year, however, the two sides ap-pear to have more common ground.

“We need to look at the glass as being half full,” said Ken Strobeck, president of the League of Arizona Cities and Towns.

On the proposal for a portal, Strobeck said his group would favor the online portal as a way to simplify the payment process.

“What that does is make use of tech-nology,” he said. “If there’s a way to do things simpler, we’re all for it.”

He also said the league would favor a reduction in the number deductions and exemptions allowed.

Overall, Strobeck said his organiza-tion would support seven of the 10 task force recommendations as currently written.

Th e three proposals the league doesn’t support would require: the state to ad-minister transaction privilege sales tax for all municipalities, the Department of Revenue to conduct all audits of the tax, and elimination of the tax on construc-tion sales in favor of a tax at the point-of-sale for construction materials.

Contact reporter Patrick McNa-

mara at [email protected] or (520)

295-4259.

FC Tucson, Pima County announce plans for new soccer stadium Inside Tucson Business

A new 2,000-seat soccer stadium will be built at the Kino Sports Complex, on the north side of Ajo Way across the street from the main baseball stadium currently being used by the Tucson Padres.

“Th e whole purpose of this is to get much more multi-sport use out of the facil-ity,” said Chuck Huckelberry, Pima County administrator.

Th e announcement of the new stadium was announced jointly Wednesday (Jan. 23) by FC Tucson and Pima County.

Huckelberry said the new fi elds and sta-dium, along with the 11,000-seat main sta-dium at Kino, will continue to host Major

League Soccer Spring Training games, in-ternational sporting events and youth and intramural sports.

FC Tucson and the county have be-gun to work on an agreement for the soc-cer organization to facilitate and organize sporting events at the redesigned complex, Huckelberry said.

Pima County plans to spend $2.8 million on changes to the complex, which include remaking the practice baseball fi elds north of Ajo Way into fi ve to six soccer fi elds.

Th e project will be funded using a por-tion of a $5 million settlement it received when the Chicago White Sox broke its Spring Training agreement following the 2008 season.

Work will begin on the new stadium af-ter Major League Soccer Spring Training Games in February. Th e county project is expected to fi nish in time for FC Tucson’s 2014 season.

Th e Kino Sports Complex, 2500 E. Ajo Way, was built primarily to facilitate Major League Baseball Spring Training and had been used by the Arizona Diamondbacks and Chicago White Sox until both teams moved to the Phoenix area. Th is will prob-ably be the fi nal year the Triple-A Padres play at Kino.

Th e team has been sold to an El Paso investment group and the plan is to move to a new stadium there that is due to com-pleted by the summer of 2014.

This Week’s Good News ‘Gridiron’ stats

Construction of the new Lowell-Stevens Football Facility at the north end zone of Ari-zona Stadium is expected to produce a major score for the UA Wildcats. Already, it has been a major winner for the region’s economy.

Between 285 and 300 construction workers are now on-site each week, a pace that will con-tinue until March, according UA Director Ath-letics Greg Byrne. And 85 percent of the workers on the project are local.

Plus, about 66 percent of the project’s $72.3 million costs have been contracted to Tucson-area companies. Th e 184,000 square-foot fa-cility is on schedule for completion in time for the Wildcats’ fi rst home football game Aug. 31 against Northern Arizona University.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Postal Service plans Th e U.S. Postal Service says it wants to run

more like a business but sometimes you’ve got to wonder. Believing what Postal Service employees told Inside Tucson Business about the planned closure of the Tucson mail sorting facility next month, this publication has been working for months to switch to a direct deliv-ery system that would assure timely deliveries of the weekly printed publication.

As editor David Hatfi eld notes in his Biz Buzz column (page 20), the switchover was a suc-cess. But Hatfi eld received a call from George Kalil, president of Kalil Bottling, who says he’s involved in an eff ort with others, including City Councilman Richard Fimbres, to keep the mail sorting facility open. “It’s not over,” he told Hat-fi eld, vowing a fi ght to the bitter end.

Th e Postal Service didn’t make much of an eff ort to suggest the closure was in question so you’ve got to wonder how many other busi-nesses may be jumping ship and this turns out to be a self-fulfi lling eff ort.

TEP logo, ouch! Tucson Electric Power’s new logo has been

ranked as the 10th worst new logo in the world by an outfi t called Under Consideration, which runs a branding and logo blog called Brand New, where 83 percent ranked it as bad. Th e blog described the new logo as “Bland as a blackout and crappy as a swoosh.”

Th e new logo, which TEP said, “features a sunny-colored arc suggestive of Southern Ari-zona’s most prominent characteristic and was designed to resemble the recently introduced logo for UNS Energy.”

One blogger described the so-called “sunny-colored arc” as a “toe nail clipping.”


a barrel equals 31 gallons, about double a conventional keg.

Th e study calculated that craft beer pro-duction in the state increased more than 20 percent each year from 2009 to 2011.

In an era where overall beer sales have fallen, craft beer sales continue to climb.

Between 2008 and 2010, according to fi gures from the Brewers Association, sales of major national label brands of beer fell by more than 3 percent. Th e craft-beer sec-tor has grown.

Craft beer sales increased by 10 percent in 2009, by 12 percent in 2010 and by 13 per-cent in 2011. Brewers Association fi gures from last summer showed that 2012 sales of craft beer were continuing the trend, with a 14 percent increase over the previous year.

Another newcomer to Tucson’s brew-ing market is Dragoon Brewing Co., 1859 W. Grant Road, No. 111, which opened in April 2012.

Eric Greene, head of brewing for Dra-goon, said the company started out with the intention of producing about 1,200 bar-rels per year. In less than a year, however, demand for the beer has exceeded expec-tations.

“It took off a lot faster than we thought it would,” Greene said.

So much so the company intends to ex-pand its brewing capacity to 9,000 barrels per year, which Greene said was more than a year ahead of plans.

Dragoon distributes to more than 50 restaurants and bars in Tucson and about 10 locations in the Phoenix area.

A specially brewed beer the company makes for Whole Foods markets is available exclusively at the retailers seven stores cur-rently open in the state.

“Th e microbrewing industry has really taken off in Arizona in the last four to fi ve years,” Greene said.

While the industry has grown in Arizo-na, it’s well behind other states where craft brewing has fl ourished.

Arizona ranks 30th in terms of per capita breweries among the 50 states and District of Columbia, according to a 2011 analysis done by the Brewers Association.

With 34 breweries operating in the state at the time, that was the equivalent of one for each 188,000 residents.

Vermont had the most per capita, with 24 breweries or one for every 26,000 peo-ple. Oregon was second with 124 breweries or one for every 30,000 residents. California has the most breweries of any state, 268.

Th at dearth of breweries in Arizona played into Greene’s decision to start Dra-goon.

After attending NAU in Flagstaff and later the American Brewers Guild training program, Greene apprenticed in Boston before returning home to Tucson.

He considered opening a brewery in Colorado or the Pacifi c Northwest, but the large number of craft brewers already oper-ating in those areas meant there would be more competition.

“Arizona is a place that everyone real-ized was under-saturated and had room to grow,” Greene said.

Going back to the 1990s there were just three craft brewers in the Tucson re-gion, Gentle Ben’s near the University of Arizona Campus, Nimbus in the south side warehouse district off Palo Verde Road and Th under Canyon Brewery in Foothills Mall.

Others that have joined them recently include Barrio Brewing, a second eff ort by the folks behind Gentle Ben’s, which opened in 2006; Th under Canyon opened a second location this month downtown and Ten 55 Brewing is planning a grand opening Feb. 2 in the warehouse district off

South Palo Verde Road.For his part Stone said, “Tucson has re-

ally turned the corner on brew culture.”

Contact reporter Patrick McNamara

at [email protected] or (520)

295-4259.

BIZ FACTS

Tucson craft brewers:• Barrio Brewing Co.www.barriobrewing.com800 E. 16th St. (520) 791-2739

• Borderlands Brewing Co.borderlandsbrewing.com119 E. Toole Ave.(520) 261-8773

• Dragoon Brewing Co.www.dragoonbrewing.com 1859 W. Grant Road, No. 111(520) 329-3606

• Gentle Ben’s Brewing Co.www.gentlebens.com865 E. University Blvd.(520) 624-4177

• Nimbus Brewing Co.www.nimbusbeer.com3850 E. 44th St.(520) 745-9175

• Ten 55 Brewing1055brewing.com3810 E. 44th St., No. 315(520) 461-8073(Grand opening: Feb. 2)

• Thunder Canyon Brewery www.thundercanyonbrewery.com220 E. Broadway(520) 396-34807401 N. La Cholla Blvd. in Foothills Mall (520) 797-2652

BREWERS CONTINUED FROM PAGE 3

PUBLIC NOTICESSelected public records of Southern Arizona bankruptcies and liens.

BANKRUPTCIESChapter 11 - Business reorganization Yaqui Electric Co. LLC, 209 S. Huachuca Blvd., Huachuca City. Principal: John Edward Morales, managing member. Estimated assets: No more than $50,000. Estimated liabilities: No more than $50,000. Largest creditor(s): Schedule not fi led. Case No. 4:13-bk-00500 fi led Jan. 14. Law fi rm: Eric Ollason

Richard Samuels and Kimberly A. Samuels, 14516 N. Quiet Rain Drive, Oro Valley. Principal: Richard Samuels and Kimberly A. Samuels, joint debtors. Estimated assets: More than $1 million to $10 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor(s): Schedule not fi led. Case No. 4:13-bk-00558 fi led Jan. 14. Law fi rm: Eric Slocum Sparks

FORECLOSURE NOTICES Shalimar Investment LLC700-702 E. Fair St. 85714 Tax parcel: 120-09-306AOriginal Principal: $800,000.00 Benefi ciary: Atlantic National Trust LLC, Portland, Maine Auction time and date: 11:30 a.m. April 11, 2013 Trustee: Western Regional Foreclosures LLC, 1 W. Deer Valley Road, Suite 103, Phoenix

Tri Pointe Tucson LLC (14.47%), Gregory R. Fretz and Ann B. Fretz (17.86%), William C. Kao and Karen L.S. Kao (5.95%), Dana Denardi (12.97%), Paul F. Ward and Lynn C. Ward (5.95%), John C. Adams (4.46%), Patricia J. Rahn (2.26%), Rita L. Boren (7.86%), and Noel Singh and Sandhya Nath (5.36%) 6363,6365, 6367, 6369, 6373, 6375, 6377, 6411, 6445 and 6451 E. Tanque Verde Road 85715Tax parcel: 133-16-030E and 133-16-030JOriginal Principal: $14,600,000.00 Benefi ciary: CSFB 2005-C3 Tanque Verde LLC, co/o LNR Partners LLC, Miami Beach, Fla.Auction time and date: 10 a.m. April 16, 2013 Trustee: Jacob A. Maskovich, Bryan Cave LLP, 2 N. Central Ave., Suite 2200, Phoenix

LIENSFederal tax liens Western Meat Co. and Bela Herczeg, 2310 N. Country Club Road. Amount owed: $11,767.02. Sunquest Information Systems Inc., 250 S. Williams Blvd. Amount owed: $141,613.16. Royal Auto Glass & Tint LLC and Justin S. Ellis, 131 S. Camino Seco. Amount owed: $2,973.22. Maria’s Cafe and Manuel J. Canez and Joann A. Canez, 3530 S. Sixth Ave. Amount owed: $6,573.68. Saguaro Acres Assisted Living Inc., 18002 S. Placita Octubre, Green Valley. Amount owed: $33,018.15. Gateway West Realty Inc., 2151 W. Felicia Place. Amount owed: $4,532.73.Cactus Cleaning LLC and Barbara Corrao, 9075 E. Igo Place. Amount owed: $17,245.79.

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

Sun Door & Trim Inc., 1522 W. Victory St. #5, Phoenix, against Starwood Tucson Realty LLC, c/o Starwood Hotels & Resorts Worldwide, 15147 N. Scottsdale Road #210H, Scottsdale, and Thompson Reuters Dept. 208, PO Box 4900, Scottsdale 85261. Property: 1900 E. Speedway. Amount owed: $15,226.00.Able Glass Service, 1219 Cherry Ave., Long Beach, Calif., against Interstate Brands Corporation, PO Box 419627, Kansas City, Mo., 64141. Property: 3045 N. Stone Ave. Amount owed: $1,863.98.Westar Environmental, PO Box 1749, Higley 85236 against Marana Health Center Inc., 13644 N. Sandario Road, Marana. Property: 13395 N. Marana Main St., Marana. Amount owed: $113,405.67.Liberty Metal Framing & Drywall, 2447 N. Stone Ave., against DND Neffson Co., PO Box 61795, Chicago, Ill. 60661; General Growth Properties, 110 N. Wacker Drive, Chicago; and Bank of America, 540 W. Madison St., Chicago. Property: 4500 N. Oracle Road, Suite 370. Amount owed: $128,528.00.

Sonora, enter to shop. Th ese Mexicans, usually poorer, also don’t have the vehicles or money that many using the Mariposa Port of Entry use when traveling to and from destinations farther into Arizona, such as Tucson.

Who knows if our thought processes are correct? At this point, Morales is ailing and longs to be back in Mexico. His family is eager for him to return. Our mission, at least, is clear.

Were we to cross at 9 a.m. or 10 a.m., it might appear odd. Th at would mean he was returning to Mexico only an hour or two after crossing through an entry that opened at 8 a.m.

If only Pedro had the agility of a Johnny Manziel, Texas A&M’s quarterback and Heisman Trophy winner. But Morales doesn’t even have the agility of most peo-ples’ grandmothers. We’d have more suc-cess trying to hurl him over the 20-foot high border fence than having him dash

across.We try to look innocent, which means

having shopping bags fi lled ostensibly with purchases from our nonexistent day trip to Nogales. It appears we have been shop-ping.

It is 11 a.m. on a Friday. Morales and his two friends now begin what is the ap-pearance of a routine exit from the United States. I drive, separately, across the border to meet them — hopefully.

What is a layman’s take on how state and federal law view what we are doing?

Under the federal Immigration and Naturalization Act, anyone who “trans-ports, or moves or attempts to transport or move such alien within the United States by means of transportation or otherwise, in furtherance of such violation of law” is punishable with prison time. Federal law would appear to give us a “bye” in that, far from furthering an illegal stay, we were at-tempting to terminate one.

SB 1070 might have had us within its sights. Arizona Revised Statutes, 13-2929, mimics the federal law and makes it un-lawful to “transport or move ...an alien in this state, in furtherance of the illegal presence of the alien in the United States.” More importantly, it is also unlawful to “conceal, harbor or shield ...an alien from detection in any place in this state, if the person knows or recklessly disregards the fact that the alien has come to, has entered or remains in the United States in violation of law.” Th ese may be issues of the day for state and federal authorities; they are but abstractions to those with imperatives.

Th e three walk toward the gate. Th e of-fi cers are distracted. No one pays attention to an unremarkable trio. Th ere is not yet a device to measure accelerated heartbeats on those leaving our country. Th e crossing is uneventful.

Th e trio walks into Mexico and cele-brates this oddest of triumphs.

UNDOCUMENTED CONTINUED FROM PAGE 4


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LEGALLEGAL FRONTLINE

Talking trash around social media ‘water cooler’ can get you fired

Th e National Labor Relations Board (NLRB) has recently found that fi ring an employee for posting an unfl attering message about her employer and its operations manager on another employee’s Facebook page was improper. Why? Section 7 of the National Labor Relations Act gives employees the right to engage in “concerted activities for the purpose of … mutual aid or protection.”

Employers who interfere with this right subject themselves to an unfair labor claim, which can be made to the NLRB, even by at-will employees.

Employers know that Internet chatter on Facebook, Twitter, LinkedIn and other social media venues supplement, enhance, and in some instances, replace the proverbial conversation around the water cooler. Internet chatter, however, can be much more damaging to an employer as it can reach a wider audience, doesn’t lend itself to moderate tones and becomes, in essence, a “permanent record” against the employer.

Nevertheless, policies that bar disparag-ing communications, disrespectful conduct, or picture postings of the employ-er have all been found by the NLRB to be too broad. Further, the NLRB has found that employers who discipline and/or fi re employees for such communications and conduct violate the National Labor Relations Act.

Does this mean an employee can criticize her employer with impunity?

Not always. With the rise of social media in the

workplace, the NLRB has created what is known as a modifi ed Atlantic-Steel/Jeff erson standard. Th ese decisions, dating back more than 30 years, upheld termina-tions of employees who uttered a unpro-voked obscenity at a foreman and handed out pamphlets to the public criticizing their employer’s product. Today’s NLRB borrowed a little from each of these decisions to craft the modifi ed standard based on a case involving a popcorn plant.

Under the NLRB’s “popcorn” test, if

• the employ-ee’s postings or texts relate to terms and conditions of employment, they are protected by the National Labor Relations Act.

• the employee is posting or

texting as a part of an employee discussion of the workplace, the actions are protected by the National Labor Relations Act.

• the employee is posting or texting from home and the comments are not verbal or physical threats, the action is protected by the National Labor Relations Act.

• the postings can be viewed by third parties but are not critical of the employer’s product or business policies, the action is protected by the National Labor Relations Act.

However, where the posting disrupts workplace discipline, contains information that damages the employer’s reputation and business, can be viewed by third parties and is accompanied by vulgar, obscene, threatening or intimidating language, the employee may lose the protection of the National Labor Relations Act.

So what is the takeaway for employers? Encourage your human resources staff and labor relations attorneys to analyze the what’s, why’s, where’s, how’s and who’s involved in social media commentary about the offi ce and who is viewing the comments before you take disciplinary action against an employee.

Contact Ann Morgan, who divides her

practice between employment law and

human resource issues, estate and trust

litigation and general business advice, at

[email protected]. Morgan is managing

partner of Fennemore Craig Jones Vargas in

Reno, Nev.

ANN MORGAN


INSIDE TRAVEL

Tucson Airport passenger numbers fall 1.4% in 2012By David Hatfi eldInside Tucson Business

Th e number of airline passengers going through Tucson International Airport in 2012 fell by 1.4 percent — the second straight year of declining numbers and the lowest calendar year total in nine years.

In December, 291,825 passengers went through the airport, the fewest December total since 2001, three months after the Sept. 11, 2001, terrorist attacks.

For all of 2012, the airport served more than 3.6 million passengers, or 52,517 fewer than in 2011, according to data from the Tucson Airport Authority. Th e last time the annual total was lower was in 2003 when Tucson International served just 3.5 million passengers. In the intervening years since then, the airport grew to reach a record high in 2007, when more than 4.4 million pas-sengers went through the airport. But totals started to dip, going below 4 million in 2009. Th e number ticked up 3 percent in 2010 but fell by 2 percent in 2011 and now 1.4 percent last year.

Th e decline in passengers is attributed to airlines being more risk adverse as they cut back to wring more profi ts from each avail-able seat. In particular, Tucson suff ered last year from struggling Frontier Airlines trying to reinvent itself as an “ultra low fare” air-line to try to make itself more attactive for a potential sale. Th e airline had been the lead-ing carrier of passengers between Tucson and its Denver home base as recently as 2010.

After initially announcing that it would merely suspend air service over the slow summer months, Frontier later announced it wouldn’t return at all. Th e move was not entirely unexpected. Frontier had dismissed all of its Tucson employees as part of the earlier move and had not made any obvious attempts to re-establish service here.

Frontier’s move was compounded by the fact that United Airlines had previously planned to trim its Tucson-Denver sched-ule to just two daily round-trips. United has since reinstated a third daily round-trip and is gearing up to add a fourth round-trip on Feb. 11 and a fi fth in March.

Southwest Airlines also fl ies between Tucson and Denver, twice each day.

Th e prognosis for 2013 isn’t promising. While there are indicators the economy is continuing to recover, airlines are still not adding fl ights. Already, Southwest has an-nounced plans to eliminate Tucson-Albu-querque fl ights by June and will cut back on fl ights to both Los Angeles International and Las Vegas over the summer. Delta Air Lines is also planning to suspend its fl ights to Minne-apolis-St. Paul from June until October.

But airport authority offi cials remain optmistic that airlines will respond to pas-senger demand at Tucson International.

Bonnie Allin, president and CEO of the Tucson Airport Authority, is scheduled to give her state of the airport address to mem-bers of the authority at their annual meeting Monday (Jan. 28).

A positive sign for the airport continues to be that airlines have cut capacity in great-er numbers than the reduction in passen-gers using the airport. Out-bound capacity in December was down an average of 659 seats per day, or 10.3 percent. Using that as a measure, 83 percent of available seats go-ing out of Tucson were fi lled in December, up from about 77 percent in December 2011.

Sky Harbor falls, tooPassenger numbers also declined at

Phoenix Sky Harbor International Airport. Th rough November, the latest month statis-tics are available for Sky Harbor, passenger counts for 2012 are down 0.5 percent to just

TUCSON INTERNATIONAL AIRPORT 2012 PASSENGER STATISTICS

Tucson International Airport passenger traffi c in December totaled 291,825, falling 3.7% from 302,871 in December 2011. Available seat capacity for the month was down 10.3% from December 2011 to an average of 5,716 outbound seats per day. This table shows each airlines’ passenger totals and market share for 2012 compared with 2011.

2012 2011 Change

Airline Non-stop destinations

Passengers Market Share

Passengers Market Share

Passengers %

Southwest 1,255,249 34.8% 1,229,453 33.6% +25,796 +2.1%Albuquerque, Chicago Midway, Denver, Las Vegas, Los Angeles, San Diego

American 846,795 23.5% 838,611 22.9% +8,184 +1.0%Chicago O’Hare, Dallas-Fort Worth, Los Angeles

United (Continental)

524,580 14.5% 503,140 13.8% +21,440 +4.3%

Denver, Houston Intercontinental, Los Angeles, San Francisco

US Airways 413,305 11.5% 431,491 11.8% -18,186 -4.2%Phoenix

Delta 395,182 11.0% 398,562 10.9% -3,380 -0.8%Atlanta, Minneapolis-St. Paul, Salt Lake City

Alaska 116,775 3.2% 106,460 2.9% +10,315 +9.7%Seattle

Frontier 53,796 1.5% 150,482 4.1% -96,686 -64.3%Discontinued service as of May 18 , 2012

Total 3,605,682 3,658,199 -52,517 -1.4%

Source: Tucson Airport Authority

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

over 37 million, from 37.2 million through the fi rst 11 months of 2011.

American-US AirwaysMore movement on a possible merger of

American Airlines and US Airways as pilots for the latter are now voting on a memoran-dum of understanding agreement that would combine the two groups. It’s particularly sig-nifi cant since US Airways pilots have been working without a contract since the 2005 merger of US Airways with America West.

Both sides stress that the agreement would take eff ect only if American and US Airways merge. When and if that happens remains up in the air. A month ago, there were reports that the goal was to get a deal made by early this month when American’s board of directors was scheduled to meet. But Tom Horton, chairman and CEO of American’s parent AMR Corp., said a deci-sion was weeks away. And some analysts say it may never happen.

Neither side is talking publicly, citing confi dentiality agreements.

LAX terminal makeoverSomething to look forward to for Los An-

geles-bound Southwest Airlines passengers: Th e airline and airport offi cials have agreed to spend about $400 million to fi x up Termi-nal 1 at LAX that will end up with Southwest being the sole airline in the terminal.

Th e plan calls for US Airways to move its LAX operations to Terminal 3, though pre-sumably that could change if it merges with American Airlines, which is in Terminal 4.

Th e Terminal 1 remodeling, which must be approved by the Los Angeles City Coun-cil, will be led by Southwest. Th e airline will recoup most of the money through reduced lease payments extending out to 2024. About $16 million of the improvements will be proprietary to Southwest and some of the security improvements most likely will be funded through grants.

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

Going to LA? Tucson airport wants to knowInside Tucson Business

Th e Tucson Airport Authority would like your answers to a few questions.

Starting this month, Inside Tucson Business readers will be asked questions regarding airline service at Tucson International Airport. Th e answers to the questions may help guide future directions the airport might pursue.

Mary Davis, senior director of business

development and marketing for the airport authority, says she knows the online polling is only a survey but she hopes the outcomes can help guide directions the airport might take.

Th is month’s questions have to do with travel to the Los Angeles area. Los Angeles International Airport is currently the top destination from Tucson International, served non-stop by three airlines: Ameri-

can, Southwest and United. But the non-stop fl ights are only to LAX.

Th at raises four questions:1. Currently there are three morning

non-stop fl ights to Los Angeles Interna-tional Airport, departing Tucson at 5:50 a.m., 7 a.m. and 9:40 a.m. Ideally, what time would you most likely use a fl ight to LAX?

2. What is your preferred airline when going to Los Angeles?

3. Why is that your preferred airline?4. If non-stop fl ights were available to

other airports in the LA area, which would you choose: Burbank, Orange County, Long Beach, Ontario or would you con-tinue to use LAX?

To participate in the survey go to this story online — www.InsideTucsonBusiness.com, then go to “Features” and “Travel” in the navigation bar at the top of the page.


WOMEN IN BUSINESS

ABCs of Finance: Tips and tools for raising a smart investor

Th e sooner the better. Th at’s a saying that applies to many facets of life, including educating children about money. Introduc-ing sound fi nancial habits early on will give your child a head start on the path to becoming an informed investor. Here are some ideas for raising a fi nancially savvy kid.

Lessons for every age• Toddler. Th e fi rst few years of life are

critical for mental development. Toys that incorporate counting, such as building blocks, can help your child develop mathematical skills.

• Age 5-plus. Board games are an entertaining way to teach kids about managing fi nances. Monopoly covers all the bases — earning money, saving and spending, capital budgeting, risk and reward and taxes. Other options for a family game night include the Game of Life, Moneywise Kids and Pay Day.

• Age 8 to preteen. At this stage, children can start to accumulate income from allowances, cash gifts and even small businesses, such as lemonade stands. As your child begins dealing with actual money — even small amounts — talk to her or him about saving and spending.

• Teenager. Your teenager may take his or her fi rst summer job or build income through part-time work such as babysit-ting. Visit a bank together and set up personal savings and checking accounts in his or her name. Th is will give your child a sense of responsibility and familiarize her or him with diff erent banking transactions.

• Off to college. Th e transition to college is typically accompanied by credit card off ers. Before sending your child off to school, discuss the pros and cons of credit cards and how to establish credit responsi-bly. Prepaid credit cards can help college students build their credit history.

• Young adulthood. Amid the excite-ment of a fi rst job, it’s all too easy to overlook retirement plan contributions.

Remind your child of the benefi ts of opening a retire-ment account early.

Books and online games

Books on personal fi nance get children to read while teaching

them an important life skill. Full of illustrations on all aspects of money and fi nance, Neale S. Godfrey’s “Ultimate Kids’ Money Book” is a great resource for ages 7–12.

Written especially for parents, “Yes, You Can . . . Raise Financially Aware Kids” by Jack Jonathan includes activities that you can do with your child to put fi nancial concepts into practice.

One of the best websites for teaching kids about money is www.monetta.com/game.htm, presented by the Monetta Young Investor Fund, a mutual fund that invests in companies familiar to children and teenagers. Th e games are free, orga-nized by age group, and range from basic quizzes to more advanced activities.

Leading by example makes good sense. Working with a fi nancial advisor can help you set the right example for your child. Your advisor may even join you in fostering your child’s fi nancial literacy.

Contact Gigi Schneppat, a fi nancial

advisor, at [email protected] or (520) 529-

3644. An investment adviser representative of

the Commonwealth Financial Network,

Schneppat is with Professional Wealth

Strategies, 3573 E. Sunrise Drive, Suite 119.

She is a member of the Greater Tucson

Chapter of the National Association of

Women Business Owners (NAWBO), whose

members contribute this monthly column.

GIGI SCHNEPPAT

GOOD BUSINESS

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PROFILEKino Springs off ers golfers an idyllic change of pace By Lee AllenInside Tucson Business

In the midst of the reported woes of golf in Southern Arizona — private courses closing and reopening over water issues and Tucson City Golf looking to shut down two courses — a duff er’s delight can be found south of Tucson in an idyllic Western setting in the middle of ranch country.

Kino Springs Golf Course on the historic 5,280-acre Yerba Buena Ranch between Patagonia and Nogales is an 18-hole semi-private course that has seen some prestigious visitors over the years, includ-ing John Wayne, Elizabeth Taylor, and former owner Stewart Granger.

It also gets some pretty good reviews. “Best course in Southern Arizona — im-maculate greens, devious hole layouts, incredible views. Low budget and home-spun, every shot is a challenge. Go there. Th ank us later,” says AZgolf.com.

I did. And thank you. Th e year-round Bermuda greens and

fairways off er three sets of tees with diff ering skill levels, from the 5,974-yard white tee to the longest one on the course, the 6,445-yard blue tee.

“Th e course begins in gentle meadow-lands until it winds its way through canyon country,” says Director of Golf Keith Mundy. “Bordered by mature pine trees, the last fi ve holes off er great views of the Santa Cruz River, open country, and a variety of wildlife.”

In the critter category is everything from curious bovines to Spanish Barb horses, descendents of equines bred by Father Eusebio Kino at his mission in Sonora. Along the Santa Cruz River, waving grasslands studded with mesquite, oak, and cottonwoods provide a birdwatchers’ bounty — hawks, orioles, fl ycatchers, kingfi shers, and more.

“You don’t have to be a good golfer to enjoy a day here. If you’re both a golfer and a birdwatcher, this place is heaven,” says Mundy. “We’re a southern migration point

Director of Golf Keith Mundy test his skills at Kino Springs Golf Course.

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for northern birds, and a northern migration point for southern birds, so we get them all.”

Th row in a few wild turkeys from time to time. Mundy says, “If it walks or crawls, it lives here.”

He should know, after 13 years at the site. “Th is is just a really cool old golf course

and over the last decade we’ve done a lot of work to get it in good shape,” Mundy said. “It’s a tight course with very fast bent grass greens and narrow fairways and the scenery on the course, especially on the backside, is unbelievable.”

Course record on the par 71 layout is a 63, shot several years ago by a local teenage boy. Descriptors of the property report: “Th e initial four holes are fl at and wide open, followed by those where the driver stays in the golf bag.”

Long-time Tucson golfer George Babich played a round recently and noted: “It’s in good shape with timely overseeding, fairways are excellent, greens (although small and elevated) are fast, and because of the elevation, the ball travels a bit farther. It’s a pleasant course to play.”

Over the years, Kino Springs has gone through phases of repair and disrepair, but “we’ve done a lot of work to improve conditions and our visitation rate refl ects that,” says Mundy, citing an annual visitor turnout in excess of 22,000. “And we could always use more,” he says.

Mundy points to the fact that the course represents a viable economic entity and a good contributor to the community in Santa Cruz County.

“Our season starts in late fall and by mid-January, it starts to rock and roll through the end of April. Th is whole area is very popu-lar with visitors and we get a lot of snowbirds coming in from everywhere throughout the country and Canada to join our local golfers. We’ve got the golfi ng option and if you’re after scenery, get on the road and drive…it’s all over the place,” Mundy says.

Th e facility is in the process of negotiating to add a restaurant to go with its small clubhouse. Both weekday and weekend rates as well as group rates are reasonable, leading Mundy to observe: “We’re probably not on everybody’s To-Do list, but we should be.”

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Tucson golfer George Babich test his skills at Kino Springs Golf Course.


Th ere was a time when Saturday night meant Carol Burnett night on TV. Her landmark comedy-variety show was a staple of the CBS line-up for 11 years, ending in 1978. Saturday (Jan. 26) is once again a night to see Burnett, only this time you’ll have to go out.

A co-presentation of Broadway in Tucson and UApresents, Burnett will be on stage at 8 p.m. at Centennial Hall, 1020 E. University Blvd. on the University of Arizona campus. Th e show is being billed as a conversation with Burnett, much like she was famous for doing at the beginning of her TV show.

Tickets are priced from $60 to $130, with discounts for students, children and UA staff . Th e show is likely to sell out before the curtain goes up. Check out availability at www.uapresents.org/ or call the box offi ce at (520) 621-3341.

ArtA two-person ceramics exhibition is on

display through March 10 at Obsidian Gallery, 410 N. Toole Ave. Work by Hirotsune Tashima and Th addeus Erdahl is joined by jewelry by Jude Clarke and other gallery artists. Obsidian Gallery opens at 11 a.m. Wednesdays through Sundays and is open until 6 p.m., Wednes-day, Friday and Saturday; until 8 p.m. on Th ursdays and until 2 p.m. on Sundays.

An exhibit at the Joseph Gross Gallery, 1031 N. Olive Drive in the College of Fine Arts Building on the UA campus, features the work of Chris Pappan and Ryan Singer examining cross culture artistic references and the impact they have on indigenous peoples. Th e show, “Language of the Land,”

will be up through March 29. Th e gallery is open from 8 a.m. to 5 p.m. weekdays.

Film For the second consecutive

year, Loft Cinema, 3233 E. Speedway, will host a special screening from the Sundance Film Festival. Th is year “Th e Spectacu-lar Now,” a sweet tale of adoles-cent love between two unlikely teens, will be shown at 7:30 p.m. Th ursday (Jan. 31). Th e fi lm stars Shailene Woodley (“Th e Descen-dants”), Jennifer Jason Leigh and Mary Elizabeth Winsted. Tickets are $15 each and last year’s screening was a sell-out. Be sure to

stay after screening for a question-and-an-swer session with director James Ponsoldt.

Two features screening this weekend at the Loft are “Beware of Mr. Baker,” a documentary about the musical genius but socially challenged drummer Ginger Baker, and the new “Dangerous Liaisons” fi lm which sets the timeless tale of love as sport in 1930s China.

At the multiplexes, there are new releases: “Parker” starring Jason Statham and Jennifer Lopez is joined by Arnold Schwarzenegger’s return to fi lm in “Th e Last Stand,” about a small town sheriff against a drug cartel. Also opening is the raunchy comedy “Movie 43” with an all-star Hollywood cast and the fantasy fl ick “Hansel and Gretel Witch Hunters” with Jeremy Renner and Gemma Arterton as grown up paranormal exterminators.

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

ARTS & CULTURE

Saturday night is Carol Burnett night again this week in Tucson

OUT OF THE OFFICEON THE MENU

In Southern Arizona, we’re conveniently located near the home of the habanero. Th is spicy little jewel is a regular fi xture on menus across the region, something we spice-heads celebrate.

But what if you’re one of those who thinks a habanero is just ho-hum?

Say hello to my little friend, the Naga Bhut Jolokia (insert horror movie violin screech here).

Originating from Nagaland, India, the Naga Bhut Jolokia – otherwise known as the ghost pepper – is said to be the hottest pepper in the world. It exceeds 1 million units on the Scoville scale, the measurement of heat in chili peppers, compared to the, yawn, 350,000 units of the habanero. Th ese peppers are so hot, defense offi cials in India have dis-cussed using them to make tear-gas grenades as weapons in the war on terrorism.

Encouragingly, those of us who like to subject our palettes to such abuse don’t have to fl y to India, because two Tucson restaurants are happy to render it them-selves.

Kababeque Indian Grill, 845 E. Univer-sity Blvd., features a menu of traditional Indian dishes, from tikka masalas to curries, all available in mild, medium and spicy options. Th e spicy versions get additional shots of cayenne and red chili peppers, but manager Chandra Meanger told me of an increasing number of customers who request extra-spicy. In these situations he’ll turn to the ghosts, if he has them in stock.

Ghost peppers deliver an intense heat, so Meanger adds only a little so as not to overpower the other regional herbs and

spices he uses. Appropriate caution is conveyed to his customers so they’re prepared for the encounter, though he keeps a house-made yogurt sauce on

stand-by which he says is an eff ective tool for extinguishing the fi re if the fl ames get out of control.

If you’re not chicken when it comes to spicy wings, there are the three locations of Risky Business sports bars and what would a sports bar be without chicken wings? But get this, if you’re at the 6866 E. Sunrise Drive location and looking for their spiciest wings, you won’t fi nd them printed on the menu.

“Th ose who want them know where to fi nd them,” explains operational owner Jon Alubowicz.

About 2 percent of his chicken wing sales are of the ghost variety, which are only available at his location.

“Th ese are exceptionally hot,” warns Alubowicz, and to cool things down, he recommends ice cream from his dessert menu, “followed by an ice cream chaser.”

Alubowicz testifi es the heat on his own ghost wings is even too much for him. “I ate one, once.” Enough said.

If you’re like I am, and you like to take your Scoville to stratospheric levels, don’t be afraid of the ghost – just make sure the yogurt sauce and ice cream are within reach.

Contact Matt Russell, whose day job is

CEO of Russell Public Communications, at

[email protected]. Russell is also

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

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

Some like it hot;Some like it hotter

MATT RUSSELLHERB STRATFORD


GET ON THE LISTNext up: Commercial real estate brokers, Commercialbuilding contractors, andCommercial real estatemanagers

Th ere’s been a delay in the production of the 2013 Book of Lists and it probably won’t arrive in mailboxes for another week. But work is un-derway gathering data for the 2014 edition.

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

elementary schools, Private secondary schools, Charter schools

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

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

• Feb. 22: Commercial photographers and Video production companies

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

If your business has been on a previous list in one of these categories, look for an email from Jeanne Bennett, List researcher for Inside Tucson Business, with details on how to update your profi le. If you would like to add your business to one of these lists, go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page to create a profi le.

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

NEW IN TOWNPlanet Fitness opensin Oro Valley

Th e fi rst of 14 Planet Fitness locations planned for the Tucson region will hold it’s grand opening Feb. 1 at 10525 N. Oracle Road, Oro Valley. Th e 14,000 square-foot center features over 100 cardio machines, infrared therapy booths, tanning beds and traditional and hydro-massage.

Planet Fitness caters to fi rst-time and oc-casional gym-goers. Training sessions start at $10 per month with no commitment.

Th e grand opening festivities will be held from 4 to 7 p.m. and include music, food and a raffl e for a fl at screen TV. Jessica Delfs, a contestant on Th e Biggest Loser TV pro-gram and a Tucson native will make a spe-cial guest appearance.

Over the next few years, company offi -cials plan to open 13 more franchised loca-tions in the local market.

RETAILBlockbuster to closeanother 300 stores

Blockbuster parent Dish Network Corp. said this week it is planning to shutter 300 of the video rental stores as online demand continues to eat away at the rental business.

Th e move will impact about 3,000 em-ployees, or about 40 percent of its workforce.

Specifi c locations for closure weren’t an-nounced. Th e once ubiquitous chain, is now down to fi ve stores in the Tucson region.

MININGMiner Freeport-McMoRansees improved Q4

Income and revenue for Freeport-Mc-MoRan Copper & Gold Inc. climbed in the fourth quarter of 2012, but not enough to off set lower results for the entire year.

Increased production from its mines re-sulted in income of $743 million, or 78 cents per share, on revenue of $4.5 billion for the quarter, compared with income of $640 mil-lion on revenue of $4.16 billion in the same quarter last year.

For the year, Freeport-McMoRan report-ed income of $3.04 billion on $18 billion in revenue, compared with $4.56 billion in in-come on revenue of $20.9 billion for 2011.

Th e company’s increased copper pro-duction is part of a plan to grow output from 3.66 billion pounds annually to more than 5 billion pounds a year, offi cials said.

Copper production for 2012 was slightly lower than 2011 results, and production for gold was signifi cantly down.

GOVERNMENTCity fi res former TCC director Obermaier

After being demoted in March and then put on “imposed leave” during an investiga-tion, Tommy Obermaier, former director of the Tucson Convention Center, was offi cial-ly fi red Jan. 18 by Tucson City Manager Richard Miranda.

According to city documents, Obermaier double-booked events on numerous occa-sions and allowed events to take place with-out signed contracts from promoters which put the TCC and the city “in a position of signifi cant liability.”

Obermaier was demoted from director of the TCC last March and has been sus-pended since August. He continued to re-ceive a regular paycheck on his nearly $40,000 per year annual salary during the suspension.

Obermaier can appeal his dissmissal to the Civil Service Commission.

Th e TCC this fi scal year is expected to re-ceive a city subsidy of more than $2 million.

MILITARYMarine version of F-35 grounded by Pentagon

Offi cials of the Pentagon and Lockheed Martin are looking into an issue with a fuel line on the Marine Corps version of the F-35, which was grounded as of Jan. 18.

Lockheed is building three models of the radar-evading F-35 fi ghter jet for the U.S.

BRIEFSmilitary and eight other countries that helped pay for its development. Th e version being built for the Marines had a feature for short take-off and landing.

Th e Arizona Air Guard at Tucson Interna-tional Airport has been vying to be a training facility for the Air Force version of the F-35.

HEALTH CAREHospital group applauds Brewer on AHCCCS plan

Th e Arizona Hospital and Healthcare As-sociation issued a statement applauding Gov. Jan Brewer’s announcement support-

ing restoration and expansion of the state’s Medicaid program, the Arizona Health Care Cost Containment System (AHCCCS).

Th e statement called Brewer’s announce-ment in her State of the State address as “a great fi rst step towards restoring the will of Arizona voters who overwhelmingly sup-ported the passage of Proposition 204 in two diff erent elections to provide AHCCCS cov-erage for childless adults.”

Brewer said the state would accept near-ly $8 billion in federally funding to support AHCCCS.

Th e restoration and expansion of AHC-CCS would provide healthcare coverage to an estimated 300,000 low-income.

Wings Like Eagles awards $65,000 to non-profi ts Five non-profi ts in the Tucson region are the recipients of a total of $65,000 in grant

awards from the Wings Like Eagles Foundation, the philanthropic arm of Golden Eagle Distributors Inc.

Th e recipients are: • $15,000 to Arizona’s Children Association• $15,000 to Casa de los Ninos Inc.• $15,000 to Gabriel’s Angels• $10,000 to Junior Achievement of Southern Arizona• $10,000 to the Ben’s Bells Project “We are pleased to support these organizations and help them continue their invalu-

able work in our community,” said Christopher Clements, president of the Wings Like Eagles Foundation. “Th is year’s grant recipients share the mission of the foundation to improve the quality of life of all Tucsonans. Together, they help make Tucson better.”

Since 2003, the Wings Like Eagles Foundation has awarded more $1.6 million to non-profi ts. Th e foundation was created in memory of the late William M. Clements, founder of Golden Eagle Distributors.

Wings Like Eagles recipientsRecipients of grant awards from the Wings Like Eagles Foundation are, from left, Susie Huhn, Casa de los Niños Inc.; Jeannette Maré, the Ben’s Bells Project; Denise Ensdorff, Arizona’s Children Association; Autumn Rentmeester, Junior Achievement of Southern Arizona; MeMe Aguila, Gabriel’s Angels, along with Molly, a Gabriel’s Angels therapy dog.

LOG ON TODAY!www.InsideTucsonBusiness.com


MEDIA

A year after format changes, how 5 radio stations are faring By David Hatfi eldInside Tucson Business

Last week, this column reported the latest quarterly Tucson radio ratings from Arbitron. It was the “family reunion” demographic, as HerbCrowe, operations manager at Cumulus Tucson group, used to call it — and for all I know, he still does. Th e point being that in the world of radio no station can be, or tries to be, all things to all people.

Th e all-encompassing fi gure estimates what all listeners, ages 12 and older, listen to over a typical week. It’s sort of an indicator of a station’s relative popularity but hardly the way an adver-tiser buys commercial time.

Th e latest Arbitron ratings, however, cover the one-year anniversary mark on some signifi -cant radio format changes that took place among fi ve stations in October and November 2011. Th at’s usually about the amount of time it’s sup-posed to take for listener habits to settle in.

Here’s where things stand: • Th e Groove KTGV 106.3-FM, which re-

vamped its rhythmic oldies format from its pre-vious incarnation as Mega, so far seems to have had the most success, especially in this latest rat-ings. While the Journal Broadcast Group station still ranks in the middle of the pack overall, it’s No. 5 among listeners ages 18-34 and is a top 10-ranked station among listeners 25-54, two major demographic targets sought by advertis-ers.

• Th e jury is still out on i97-5 KSZR 97.5-FM, partly because it hasn’t been a year since Feb. 2, 2012, when the Cumulus Media station dumped its adult contemporary music and “Bob” perso-na in favor of a top 40 format. Th e station has cracked into the top 10 fattracting 18-34 year-old listeners. Another goal was supposed to be steal-ing listeners away from Clear Channel’s KRQ 93.7-FM, which might be happening because it isn’t quite as dominate in the ratings as it once was.

• If the quarterly ratings were taken solely at face value, the Spanish adult contemporary for-mat on La Preciosa KTZR 1450-AM is fi nally back as a ratings winner, 3½ years after Clear Channel gave it up. Th e diff erence now is that since Nov. 21, 2011, the format is on an AM sig-

nal that had been struggling in the ratings — as an oldies music station and then as an all-come-dy station. Th e question, however, is that these latest ratings show a huge 150 percent increase in audience share from the previous quarter, co-incidentally at a time when the market’s leading Spanish station, Lotus’ La Caliente KCMT 102.1-FM, saw its audience drop. Th at could be a fl uke that won’t be determined until more ratings come out. Another big question mark was raised

this week with the apparent end of the syndicat-ed Alex “El Genio” Lucas, whose morning show got some of the highest ratings on La Preciosa.

• On Nov. 28, 2011, KNST added 97.1-FM to its 790-AM signal in a move that was supposed make Clear Channel’s conservative news-talk station more appealing to younger listeners. If that’s happening, it’s not obvious. Arbitron doesn’t report KNST’s FM ratings separate from

AM. Th e station’s overall audience share is up 0.6 of a share point from what it was as an AM-only station a year ago. Curiously, KNST got nosed-out by Journal’s the Truth KQTH 104.1-FM among core 25-54 year-old listeners in the time period that includes Rush Limbaugh and Sean Hannity.

• Of all the changes, My 92.9 KMIY 92.9-FMmight be the source of the biggest concern for its Clear Channel programmers. Since changing from the modern music format of the Mountain on Nov. 18, 2011, the hot adult contemporary format has lost about as many listeners as it has gained. Further, the change only seems to have made its closest adult contemporary music competitor, Journal’s Mix-FM KMXZ 94.9-FM even more popular overall. To its credit, My 92.9 has attracted more younger listeners. Still, though, of the seven most powerful commercial FM signals in the Tucson market, 92.9-FM is the only one not among the top 10-rated stations in the market.

KIIM to ‘Nash’? New York now has a country music station

for the fi rst time since 1996. So why do we care in Tucson? As part of the announcement of the launch of the station on Monday (Jan. 21), Cu-mulus Media said it is rebranding all 83 of its country music stations to match the New York station, which is calling itself “Nash (short for Nashville) 94.7.” Presumably that includes Cu-mulus’ KIIM 99.5-FM in Tucson.

Th e company said the rebranding was to start Tuesday but this week the change wasn’t obvious yet on KIIM. Th at’s not surprising. Last year, word got out the company was going to change to the i97-5 format nearly four months before it actually took place and earlier this year the company announced an alignment with iHeartRadio weeks before the Tucson stations acknowledged it.

Since 1983 when it went on the air, KIIM has been a Tucson ratings leader and, although oth-er country competitors have come and gone since then, it has had the format all to itself in the market for the past 11 years.

TOP STATIONS: ADULTS 2554 Rank Station Average

audience

1 Mix-FM KMXZ 94.9-FM 4,550

2 KIIM 99.5-FM 4,170

3 KRQ 93.7-FM 3,415

4T K-Hit KHYT 107.5-FM 3,035

4T KLPX 96.1-FM 3,035

6 KFMA 92.1-FM/101.3-FM 2,655

7T La Caliente KCMT 102.1-FM 2,275

7T Hot 98.3 KOHT 98.3-FM 2,275

7T The Truth KQTH 104.1-FM 2,275

10T The Groove KTGV 106.3-FM 1,895

10T My 92.9 KMIY 92.9-FM 1,895

10T La Poderosa KZLZ 105.3-FM 1,895

Source: Arbitron Inc.,average audience per quarter hour, adults ages 25-54 Monday through Sunday, 6 a.m. to midnight.

`

TOP STATIONS: ADULTS 1834 Rank Station Average

audience

1 KRQ 93.7-FM 3,345

2 KIIM 99.5-FM 2,630

3T Hot 98.3 KOHT 98.3-FM 2,150

3T KFMA 92.1-FM/101.3-FM 2,150

5 The Groove KTGV 106.3-FM 1,670

6 Mix-FM KMXZ 94.9-FM 1,435

7T La Caliente KCMT 102.1-FM 1,195

7T i97-5 KSZR 97.5-FM 1,195

7T My 92.9 KMIY 92.9-FM 1,195

10T KLPX 96.1-FM 955

10T La Poderosa KZLZ 105.3-FM 955

Source: Arbitron, average audience per quarter hour, adults ages 18-34 Monday through Sunday, 6 a.m.-midnight.

TOP 10RATED MORNING RADIO SHOWSRank Show Station Average

quarter-hour

audience 6-10

a.m. weekdays

1 Max, Shannon and Porkchop KIIM 99.5-FM 12,710

2T Bobby Rich Morning Mix Mix-FM KMXZ 94.9-FM 11,865

2T Johnjay and Rich KRQ 93.7-FM 11,865

4T The Frank Show KLPX 96.1-FM 7,625

4T Garret Lewis Morning Ritual KNST 97.1-FM/790-AM 7,625

4T Tim Tyler K-Hit KHYT 107.5-FM 7,625

7T Los Hijos de La Manaña La Caliente KCMT 102.1-FM 6,780

7T Jon Justice The Truth KQTH 104.1-FM 6,780

9 Fook KFMA 92.1-FM/101.3-FM 4,700

10 Mojo in the Morning Hot 98.3 KOHT 98.3-FM 5,085

Source: Arbitron Inc.


MEDIAIn addition to radio, Cumulus says the “Nash”

branding will include a monthly Nash Magazineto launch during the last half of this year, as well as social media, concerts and TV programming.

Names in news Johnjay Van Es and Rich Berra have agreed

to a “multi-year contract extension” with Clear Channel Media and Entertainment. Th e “John-jay and Rich” morning show, which started in Tucson on KRQ in 2001, now originates in Phoe-nix and broadcasts in eight markets: Las Vegas; Portland, Ore.; Albuquerque; Colorado Springs and Fort Collins, Colo.; and Tucson, Phoenix and Flagstaff in Arizona.

Former Republican presidential candidate Herman Cain launched his syndicated radio talk show on Monday (Jan. 21) and it airs in Tuc-son from 9-11 weeknights on the Voice KVOI 1030-AM. Nationally, the show replaced Neal

Boortz, who retired this month. Th e Truth KQTH 104.1-FM, which had been airing Boortz’ show opted to re-arrange its schedule, moving a revamped Laura Ingraham show into the va-cated time slot and adding Rusty Humphries. KVOI’s broadcasts of Cain’s show are being de-layed from the mornings.

Wettstein celebrationA “Celebration of Life” memorial service for

former advertising executive Earl Wettstein will be held at 2 p.m. Feb. 2 at San Pedro Chapel, 5230 E. Fort Lowell Road. Friends are invited to share their favorite stories of Wettstein, who died suddenly Jan. 9, of a heart attack.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

Soc

iety

forHum

anRe

source Management of Greater

Tucson

Save the Date

Keynote Speaker: Pamela Jett,

Jett Communications, Inc.

Celebrating Innovation in the

Workplace Event

INNOVATION LEADERSHIP DIVERSITY TECHNOLOGY COMMUNITY

COMMUNITY TECHNOLOGY DIVERSITYLEADER

SHIP INNOVATION

Tuesday, March 12, 20132:00-5:00 pm

5:00 pm Champagne ToastDouble Tree Hotel at Reid Park

445 S. Alvernon Way, Tucson, Arizona 85710



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PEOPLE IN ACTION

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

{YOUR NAME HERE}

sales teams and programs, catering and convention services. Prior to joining the Westin La Paloma team, Gelfand was director of sales and marketing at Turnberry Isle Miami and The Westin Copley Place. He served as director of sales at The Westin Diplomat Resort and Spa and The Walt

NEW HIRES

The law fi rm of Quarles & Brady LLP has announced that Jaimie R. Anderson has joined the fi rm’s Tucson offi ce as an associate in the intellectual property practice group. Anderson’s experience includes patent prosecution involving a wide range of technologies including organic chemistry, resins, medicinal chemistry, immunology, materials science, biotechnology, pharmaceuticals, mechanical and medical devices. She earned both her law degree and a Ph.D. in chemistry from Emory University and her undergraduate degree, highest honors,

from the Georgia Institute of Technology.

The Metropolitan Pima Alliance (MPA) has hired Allyson Solomon to lead the organization’s government relations efforts. Solomon comes to MPA from the Tucson Metro Chamber where she served as a public policy analyst. Previously, Solomon worked for the Town of Oro Valley and was involved with the town’s Economic Development Summit in January 2011.

The Westin La Paloma has hired James M. Gelfand as director of sales and marketing. Gelfand will direct group and leisure

Disney World Swan and Dolphin Resort in Florida.

Lewis Humphreys has been hired as Tech Launch Arizona’s marketing and communications manager. In his new role, Humphreys will create marketing campaigns to build awareness of TLA services to faculty in the

ALLYSON SOLOMON JAMES M. GELFAND

SPECIAL EVENTS

Isaac Marks Memorial Lecture Monday (Jan. 28)5:30 to 6:30 p.m.James E. Rogers College of Law 1201 E. Speedway Prof. Martha Nussbaum, philosopher and award-winning author, will present at The University of Arizona James E. College of Law, discussing new religious intoleranceContact: Marissa White [email protected] (520) 621-8430www.law.arizona.edu

Building a Diverse and Vibrant Community Award DinnerSaturday (Feb. 9)6:15 to 9 p.m.Westin La Paloma Resort & Spa 2800 E. Sunrise Drive Contact: Naomi Weiner director@aifl tucson.org 520.322.9544www.aifl tucson.orgProceeds from this dinner event will benefi t the Arizona Israel Friendship League

Maximize Your Direct Mail Muscle: Links into Lists, Leads and MoreTuesday (Feb. 12)11:30 a.m. to 12:30 p.m.The Tucson Metro Chamber 465 W. St. Mary’s RoadA Business Growth Series Workshop presented by Tom Farmer of the Pima County Public Library and Dawn Vandaveer of Prototypes.Contact: Shirley Wilka [email protected](520) 792-2250 ext. 132$10/person; non-

members: $20/persontucsonchamber.org

REGULAR MEETINGS

Foothills Rotary ClubFirst and third FridaysNoonMichelangelo’s420 W. Magee RoadLunch OptionalInfo: (520) 909-9375

The Foothills Club of Tucson Second Friday 12:30 to 2:30pmHacienda Del Sol5501 N. Hacienda Del Sol RdContact: Leslie Hargrove(520) 445-9237www.foothillscluboftucson.com

Fountain Flyers ToastmastersEvery Tuesday6:30 a.m.Coco’s Restaurant7250 N. Oracle RoadInformation: Cheryl at (520) 730-4456Cost: Free to visit

Got a business challenge, 30 minutes & 20 bucks?Every Tuesday and Thursday 8 to 9 a.m.Savaya Coffee Market 5530 E. Broadway Ste.174 Info: Dale Bruder, Dynamic Strategist [email protected] (520) 331-1956 www.dalebruder.com$20

Group Referral Organization networking group First and third WednesdaysLuna Bella

2990 N. Swan Road Suite 145Information: www.grotucson.com

Independent Business Networking Tucson “IBNT”Second and fourth Tuesdays El Parador2744 E. Broadway RSVP: Jennifer Row at (520) 603-3315 or [email protected]: First time is free

Inside ConnectionsSecond and fourth Wednesday, 7:15 a.m.Home Town Buffet5101 N. Oracle RoadRSVP: Eric Miller at (520) 979-1696

Institute of Management AccountantsThird Thursday, (September through May) 6:30 p.m. to 8 p.m.Old Pueblo Grille60 N. Alvernon WayRSVP: Gale McGuire (520) 584-3480 or [email protected]

“Real Estate Investment Plan”Keller Williams Southern Arizona1745 E. River Road, Ste. 245

Third Tuesday6 p.m.Workshop for individuals considering investment RSVP by noon Mondays (520) 909-9375

Kiwanis Club of Oro ValleyWednesdays, 7 a.m.Holiday Inn Express 10150 N. Oracle RoadInfo: [email protected]: $8

LeTip MidtownEvery Tuesday, 7:01 to 8:31 a.m.El Parador Restaurant 2744 E. BroadwayRSVP: (520) 296-9900Cost: $10

LeTip TucsonExecutives Chapter meetingEvery Tuesday, 11:30 a.m. to 1 p.m.Macayo’s Mexican Kitchen 7360 N. Oracle RoadRSVP: (520) 299-9600, [email protected]

LeTip International I-19 Business NetworkersEvery Tuesday, 11:30 a.m. to 1 p.m.Amado Territory I-19 exit 48Information: (520) 591-5500

Cost: $15

Tucson Breakfast Lions ClubWednesday 7 to 8 a.m.Radisson Suites Tucson6555 E. Speedway [email protected]

Marana Chamber of Commerce BreakfastsFirst Wednesday, 7:30 a.m.Taste of Texas 8310 N. Thornydale RoadRSVP: (520) 682-4314

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

Meet ToastmastersEvery Wednesday6:15 a.m.Chaffi ns Diner 904 E. BroadwayContact: Hitch Paprocki [email protected] (520) 907-4455www.toastmasters.org

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

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

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

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

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

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

CALENDAR

Submissions: Deadline for calendar submissions is 10 days prior to publication. Post your event online at www.insidetucsonbusiness.com/calendar. Email any questions to [email protected].

{YOUR EVENT HERE}

A complete calendar listing is atA complete calendar listing is at

InsideTucsonBusiness.com

initial stages of taking their discoveries to market, and develop channels and strategies to communicate the value proposition of their inventions to potential investors and companies that will adopt these inventions and transform them into products and services.

Humphreys holds a masters degree in political economy from The London School of Economics.

APPOINTMENTS

The TREO Board of Directors has announced the following new leadership additions: New Vice Chairman of the Board/

Chair-Elect: Guy Gunther, vice president and general manager, Tucson and Greater Arizona, CenturyLink. New Chairman’s Circle Members include: Karen D. Mlawsky, CEO, University of Arizona Medical Center; Sandra Watson, president and CEO, Arizona Commerce Authority. TREO Offi cers include: Chairman Steve Eggen, (ret.) CFO, Raytheon Missile Systems; Immediate Past Chairman Paul Bonavia, chairman and CEO, UNS Energy Corp. and Tucson Electric Power Company; Secretary/Treasurer Lisa Lovallo, market vice president, Southern Arizona, Cox Communications.

JAIMIE R. ANDERSON


FINANCEYOUR MONEY

Investing is not a sprint — it’s a marathon

Investors sometimes may get frustrated because their investments don’t seem to produce quick results. And perhaps that’s understandable in a fast-paced society in which we’ve grown accustomed to instant gratifi cation. But investing is, by nature, a long-term activity.

If you look at it in terms of an athletic event, it’s not a sprint, in which you must pull out the stops to quickly get where you’re going. Instead, it’s more like the 26.2-mile race known as a marathon.

As an investor, you can learn a few things from marathoners, such as:

• Preparation — No one gets up one day and is ready to run a marathon. Marathon runners train for months, and even years. As an investor, you too need to prepare yourself for the “long run.” How? By learning as much as you can about diff erent asset classes, types of risk and all the other factors associated with investing.

• Patience — Marathoners know they have a long haul in front of them, so they typically create a “game plan” — one that takes into account such factors as their physical condition, the weather on race day, and the characteristics of the course, such as whether it’s hilly or fl at. Investors should also create a strategy — one that encom-passes their goals and ways of working toward them — and stick to this strategy.

• Perseverance — Marathoners may deal with injuries, dehydration and other setbacks, either while training or during the actual race. But as long as they’re able to keep going, they do so. As an investor, you, too, will face obstacles, such as market downturns. But as long as you continue investing and don’t head to the “sidelines,” you have a good chance of making progress toward your goals.

• Vision — Marathoners study the course

they’re on, so they know what’s ahead — and where they’re going. As an investor, you also need a vision of what lies in front of you — the number of years until your retirement, the type of retirement lifestyle you

anticipate, what sort of legacy you plan to leave, and so on. Your vision will help drive your investment decisions.

• Proper coaching — Not all marathon-ers have individual coaches, but many have at least gone to clinics or joined running clubs so they could learn more about the various aspects of this grueling event. As an investor, you can certainly benefi t from guidance or “coaching” in the form of a fi nancial professional — someone who knows your individual needs, goals and risk tolerance and who has the experience to make recommendations that are appropri-ate for your situation.

Every marathoner is familiar with the diffi culties of the challenge and the satisfaction of fi nishing the race. As an investor, you also will be tested many times. Furthermore, you’ll never really cross the “fi nish line” because you’ll always have goals toward which you’ll be working. Yet, by emulating the traits of successful marathoners, you can continue working toward your objectives — and perhaps you’ll avoid the blisters, too.

Contact Tim Beithon, a fi nancial

advisor with Edward Jones, at Tim.Beithon@

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

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

TIM BEITHON

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

Company Name Symbol Jan. 23 Jan. 16 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.03 0.04 -0.01 0.02 0.12CDEX Inc CEXIQ.OB 0.09 0.08 0.01 0.01 0.60Providence Service Corp PRSC 19.03 17.17 1.86 9.56 19.67UniSource Energy Corp (Tucson Electric Power) UNS 43.97 43.85 0.12 35.20 45.12

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 9.15 8.85 0.30 7.97 10.92AMR Corp (American Airlines) AAMRQ 1.42 1.56 -0.14 0.36 1.66Augusta Resource Corp (Rosemont Mine) AZC 2.41 2.50 -0.09 1.48 3.65Bank Of America Corp BAC 11.42 11.57 -0.15 6.72 12.20Bank of Montreal (M&I Bank) BMO 64.26 63.30 0.96 50.95 64.79BBVA Compass BBVA 10.21 10.31 -0.10 5.30 10.44Berkshire Hathaway (Geico, Long Cos) BRK-B* 96.48 95.02 1.46 77.83 96.56Best Buy Co Inc BBY 15.40 14.63 0.77 11.20 27.95BOK Financial Corp (Bank of Arizona) BOKF 56.39 55.97 0.42 50.89 60.00Bombardier Inc* (Bombardier Aerospace) BBDB 4.13 3.99 0.14 2.97 4.93CB Richard Ellis Group CBG 20.89 20.59 0.30 14.97 21.16Citigroup Inc C 42.02 42.50 -0.48 24.61 43.25Comcast Corp CMCSA 40.00 39.17 0.83 25.61 40.28Community Health Sys (Northwest Med Cntrs) CYH 37.77 35.01 2.76 18.19 38.56Computer Sciences Corp CSC 42.05 41.67 0.38 22.19 42.78Convergys Corp CVG 16.88 16.91 -0.03 12.13 17.50Costco Wholesale Corp COST 102.12 101.15 0.97 81.00 105.97CenturyLink (Qwest Communications) CTL 40.35 39.60 0.75 36.50 43.43Cvs/Caremark (CVS pharmacy) CVS 52.61 51.91 0.70 41.48 52.63Delta Air Lines DAL 13.78 13.65 0.13 8.42 14.15Dillard Department Stores DDS 81.04 81.01 0.03 43.70 89.98Dover Corp (Sargent Controls & Aerospace) DOV 68.16 66.68 1.48 50.27 68.55DR Horton Inc DHI 21.82 20.97 0.85 13.45 22.79Freeport-McMoRan (Phelps Dodge) FCX 35.02 34.33 0.69 30.54 48.96Granite Construction Inc GVA 35.55 34.39 1.16 21.38 35.82Home Depot Inc HD 66.46 63.76 2.70 44.22 66.48Honeywell Intl Inc HON 68.27 66.55 1.72 52.21 68.40IBM IBM 204.72 192.26 12.46 181.85 211.79Iron Mountain IRM 34.47 33.46 1.01 27.10 37.70Intuit Inc INTU 63.67 63.13 0.54 53.38 64.06Journal Communications (KGUN 9, KMXZ) JRN 5.20 5.13 0.07 3.94 5.85JP Morgan Chase & Co JPM 46.23 46.45 -0.22 30.83 46.87Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 37.19 36.66 0.53 27.96 38.62KB Home KBH 18.63 16.14 2.49 6.46 18.99Kohls Corp KSS 43.45 42.75 0.70 41.35 55.25Kroger Co (Fry's Food Stores) KR 27.66 26.14 1.52 20.98 27.91Lee Enterprises (Arizona Daily Star) LEE 1.30 1.24 0.06 1.04 1.81Lennar Corporation LEN 42.61 40.61 2.00 21.33 42.69Lowe's Cos (Lowe's Home Improvement) LOW 37.88 35.83 2.05 24.76 37.97Loews Corp (Ventana Canyon Resort) L 43.37 42.44 0.93 37.02 43.44Macerich Co (Westcor, La Encantada) MAC 59.00 58.18 0.82 53.18 62.83Macy's Inc M 38.23 37.94 0.29 32.31 42.17Marriott Intl Inc MAR 39.15 38.76 0.39 33.93 41.84Meritage Homes Corp MTH 42.81 41.91 0.90 23.41 43.26Northern Trust Corp NTRS 50.57 50.65 -0.08 40.64 53.50Northrop Grumman Corp NOC 68.71 66.95 1.76 56.59 71.25Penney, J.C. JCP 18.35 18.72 -0.37 15.69 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 20.84 19.35 1.49 7.42 21.15Raytheon Co (Raytheon Missile Systems) RTN 58.20 57.71 0.49 47.50 59.34Roche Holdings AG (Ventana Medical Systems) RHHBY 54.38 53.05 1.33 38.63 54.43Safeway Inc SWY 19.85 17.64 2.21 14.73 23.16Sanofi -Aventis SA SNY 48.03 48.30 -0.27 33.03 49.28Sears Holdings (Sears, Kmart, Customer Care) SHLD 45.06 45.00 0.06 38.40 85.90SkyWest Inc SKYW 13.82 13.57 0.25 6.25 14.32Southwest Airlines Co LUV 11.36 11.20 0.16 7.76 11.60Southwest Gas Corp SWX 43.88 42.88 1.00 39.01 46.08Stantec Inc STN 39.81 41.33 -1.52 25.77 42.55Target Corp TGT 61.04 61.22 -0.18 49.75 65.80TeleTech Holdings Inc TTEC 18.02 18.34 -0.32 14.04 18.50Texas Instruments Inc TXN 33.08 32.37 0.71 26.06 34.24Time Warner Inc (AOL) TWX 50.82 49.00 1.82 33.62 50.97Ual Corp (United Airlines) UAL 25.00 26.02 -1.02 17.45 26.24Union Pacifi c Corp UNP 135.35 131.11 4.24 104.08 136.19Apollo Group Inc (University of Phoenix) APOL 20.04 20.20 -0.16 18.36 56.29US Airways Group Inc LCC 15.07 14.40 0.67 6.78 15.64US Bancorp (US Bank) USB 33.09 33.18 -0.09 27.30 35.46Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 69.49 69.17 0.32 57.18 77.60Walgreen Co WAG 39.52 39.55 -0.03 28.53 39.60Wells Fargo & Co WFC 34.95 35.16 -0.21 28.77 36.60Western Alliance Bancorp (Alliance Bank) WAL 11.48 11.25 0.23 7.80 11.66Zions Bancorp (National Bank of Arizona) ZION 22.58 22.25 0.33 16.40 22.81Data Source: Dow Jones Market Watch

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


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INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

Like fl owery perennials, fresh real estate forecasts are popping up all over. Th e Greater Tucson chapter of the Building Owners and Managers Association (BOMA) and the South-ern Arizona chapter of the Institute of Real Es-tate Management (IREM) will stage an event Tuesday (Jan. 29) with former University of Ari-zona economist, professor and author Gerald Swanson leading a forum of prognosticators.

Swanson, an in-demand economic ana-lyst who retired from the UA in December, has clients that include the U.S. government, Arizona legislature and Fortune 500 corpora-tions. He co-authored the book “Bankruptcy 1995: Th e Coming Collapse of America and How to Stop It” and has appeared on nation-al telecasts including, the “Today” show, “Larry King Live,” and “Moneyline.”

Tuesday’s event also will feature an up-date on economic development and com-mercial real estate activities. Th e scheduled participants are:

• Michael Guymon, vice president of Tucson Regional Economic Opportunities (TREO), who focuses on business retention, recruitment and expansion initiatives.

• Ken Marcus, director of the UA Science & Technology Park, who is responsible for the fi nances and operations of both the UA Tech Park and UA Bio Park.

• Melanie Morrison, co-owner and des-ignated broker for MEB Management Ser-vices, which manages more than 20,000 units and has more than 600 employees.

• Swain Chapman, founder of Chapman Management Group and has participated in the acquisition of hundreds of acres of com-mercial land and more than 3 million square

feet of commercial properties.• Barbi Reuter, associate broker for Cush-

man & Wakefi eld/Picor Commercial Real Estate Services, who founded the fi rm’s property management division. Th e group markets more than 3 million square feet of offi ce, medical, industrial and retail space.

Tuesday’s event will be at the Viscount Suite Hotel, 4855 E. Broadway. It starts at 7:45 a.m. with a buff et breakfast and will end by noon. Cost is $35, but is included as part of a regular BOMA membership. Regis-ter online at www.bomagt.org.

CCIM is Feb. 12 Don’t close that appointment book yet:

On Feb. 12, there will be another forecast put on by another organization with an ac-ronym to decipher: CCIM. Th e Southern Arizona chapter of Certifi ed Commercial Investment Member will bring out 15 ex-perts to present their insights, opinions and predictions for 2013.

In a “competitive” format, the experts will foretell the 2013 future of the offi ce, re-tail, multifamily, land, industrial and fi -nance sectors. Th e keynote speaker is Fletcher McCusker, chairman of the Rio

Forecasting frenzy: predictors to present prognoses

Two upcoming forums will focus on forecasting the future of commercial real estate in Southern Arizona.

Nuevo Multipurpose Facilities District’s board of directors. Additionally, builder and developer Pete Herder and the late UA pro-fessor/philanthropist Louise Marshall will be honored as “legends” of real estate.

Th e Feb. 12 forecast will be at the Mar-riott Tucson University Park Hotel, 880 E. Second St., starting at 1:30 p.m. and ending by 5 p.m. It will be followed by a networking reception. Cost is $100 per person, or $80 for CCIM members, or $900 for a table of 10 for registrations made by Jan. 31. On Feb. 1 the price goes up to $115 per person, $95 for CCIM members or $950 for a table of 10.

Th e Tucson Association of Realtors is handling details and reservations. Email [email protected] or call (520) 382-8789.

Sales by zip codeOf 4,449 residential units available for

sale in the Tucson region in December, 831 were concentrated in three areas, account-ing for 19 percent of the available inventory, according to the Tucson Association of Re-altors Multiple Listing Service.

Green Valley had the most listings at 320 units, followed by zip code 85739, the area along North Oracle Road to Catalina State Park to the junction of Arizona Highways 77 and 79, with 275 listings. Th e third highest amount of listings was in the central Catali-na Foothills zip code of 85718, where there were 236 homes listed.

Over the past 18 months, these three zip code areas have consistently had high inven-tory compared with other areas in the region.

By volume, the most homes, 55, were sold in zip code 85710, which is basically East 22nd Street and Pantano Parkway ar-eas. Th e second highest volume was in Vail, where there were 44 sales.

By percent sold, the best-selling areas were 85706, the southeast part of the region near Alvernon Way and Drexel Road, where 34 of 51 listings sold, a 67 percent ratio. Th e far southwest side zip code of 85746, in the Ajo Way-Mission road area, had 33 of 60 list-ings sell, for a 55 percent ratio. And 21 or 38 listings sold, also a 55 percent ratio, in the 85757 zip code, which is on the southwest side near Ryan Airfi eld.

Year-over-year, the Realtors’ listing ser-vice reported that housing inventory de-clined 9.4 percent.

Currently, the biggest supply of homes are priced in the range of $200,000 to $249,999 where there are 525 listings. Th ere are 163 homes currently on the market priced at $1 million or more.

Sales and leases• Rich Rodgers Investment Inc. pur-

chased a 5,092 square-foot offi ce building at 184-190 S. Stratford Drive for $150,000 from BOT Real Estate Holdings I. Th e transac-tion was handled by Brandon Rodgers, Pi-cor Commercial Real Estate Services.

• GAP Ministries Inc. leased 25,000 square feet at 2861 N. Flowing Wells Road from Keenan Investment Company, repre-sented by Gary Emerson, GRE Partners. Th e tenant was represented by John Hamner, Keller Williams.

• Towne Air Freight leased 17,711 square feet at 6855 S. Lisa Frank Ave. from RG-Me-dina LLC, represented by Rob Glaser and Peter Douglas, Picor Commercial Real Es-tate Services. Th e tenant was represented by Brad Struck, Transwestern.

• Furniture Depot leased 3,525 square feet at 1880 E. Mitchell St. from Albright Family Trust. Aaron LaPrise, Picor Com-mercial Real Estate Services, handled the transaction.

• Relish Wine Pub leased 3,050 square feet at 4600 E. Camp Lowell Drive from Swan Retail LLC, represented by Brian Har-pel, the Harpel Company.

• Robert Streyar, doing business as Quality Mattress Outlet, leased 2,900 square feet at 6440 N. Oracle Road, from Plaza del Oro LLC, represented by Shannon Murphy and Paul Schloss, CBRE.

• Ventana Crossfi t LLC leased 2,800 square feet at 6875 E. Sunrise Drive, Suite 131, from M.E.F. Company. Th e transaction was handled by Aaron LaPrise, Picor Com-mercial Real Estate Services.

• Super Carniceria El Rodeo LLC leased a 2,633 square-foot building at 3901 E. Ben-son Highway from Bermer Corporation. Rob Tomlinson, Picor Commercial Real Es-tate Services, handled the transaction.

Email sales and leases and other real

estate news items to [email protected].

Inside Real Estate & Construction appears

weekly.

THE PULSE: TUCSON REAL ESTATE

1/14/2013 1/7/2012

Median Price $149,000 $150,000Active Listings 5,207 5,189New Listings 447 503Pending Sales 405 396Homes Closed 221 159Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

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

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

5/1 ARM 2.63% 2.875%APR 2.63% 2.875% APRThe above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000Information provided by Randy Hotchkiss, National Certifi ed Mortgage Consultant (CMC) Hotchkiss Financial, Inc. P.O. Box 43712 Tucson, Arizona 85733 • 520-324-0000MB #0905432. Rates are subject to change without notice based upon market conditions.

1/22/2013


Fingers crossed we think we have success in the new direct delivery of the weekly print edition of Inside Tucson Business. Now we’re looking for more success with the launch of our search for 2013 Up & Comers.

Let me take those two in reverse order.

Up & Comers is Inside Tucson Business’ annual recognition of people who, while still early in the careers, are having an impact, either in their chosen line of work or in the community — and most often, in both. Th is is an opportunity to recognize those individuals who are destined to do great things.

Th is is the 11th year of these truly inspirational honors. From your nominations, a group of previous honorees will be asked to select nine people to be featured in a special section in the April 12 issue of Inside Tucson Business. We’ll follow that up with a special reception for our honorees.

We’re taking nominations online — www.InsideTucsonBusi-ness.com — click on the Up & Comers icon on the right-hand column of the home page.

One of the things we’ve heard is that the nomination form we had been using was way too complicated. If that steered you away in the past, don’t let it this time. We’ve narrowed down the form to just the basics. Please also know that self-nominations are accepted.

So please think about who you would like to nominate and then do it. Please do it before 5 p.m. Feb. 18.

As for the other measure of success, the fi rst week of direct delivery of Inside Tucson Business came and went with only about a dozen subscribers telling us they didn’t get their papers. Most of those were delivered either Saturday or a few on Sunday.

Circulation Manager Laura Horvath tells me 87 percent of our subscribers have opted to go with direct delivery, mostly at their homes. At my house, Inside Tucson Business arrived with Friday morning’s Arizona Daily Star and Wall Street Journal all in one bag with a hand-written note on the bag reading, “All your newspapers.”

Along with the delivery change, we’ve added some subscriber services, such as starting and stopping deliver for vacations and changing addresses. Most of it can be done online. Go to www.InsideTucsonBusiness.com, click on subscriber services. We also have a dedicated phone line for subscription issues. It’s (520) 295-4219.

We made the delivery change because of uncertainties with the U.S. Postal Service that are likely to delay deliveries. I received a call from George Kalil, president of Kalil Bottling, who wanted me to know the closure of the Tucson mail sorting facility is not a done deal, despite the Postal Service’s intent. He said he is working with local offi cials to “fi ght it all the way.”

We wish them luck, but the fact is businesses — and that’s what we are at Inside Tucson Business — have to make decisions based on what we believe to be happening. Th ere’s no room for uncertainty. In our case, it looks as if we’ve made lemonade out of lemons or a silk purse out of sow’s ear.

How do you feel about it? Drop me an email.

Contact David Hatfi eld at dhatfi [email protected] or

(520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Building on success: Up & Comers, home delivery

EDITORIAL

Wish we would have thought of itIt looks as if the AAA Auto Club and Better Business

Bureau have themselves covered. Same with IBM, Sanofi and Accenture, three fi rms with connections to Southern Arizona.

Th ey’re among the applications that have been received from people and organizations that want to do more with their web addresses or uniform resource locators (URLs) than end with .com, .org, .edu or one of several country-specifi c endings such as .mx for Mexico.

For an application fee of $185,000, the Internet Corporation for Assigned Names and Numbers (ICANN), the international group headquartered in Los Angeles that oversees online addresses, has set out to add new suffi xes to Web addresses.

Th ey’re offi cially called generic top-level domains (gTLDs). ICANN offi cials said they thought they would get somewhere between 200 and 500 applications. Th ey’ve received 1,930.

Obviously some people with big ideas have snapped up some they think could make them money, such as .art .baby, .inc, .mobile, .pizza and .soccer. Th ree applications were made for .sucks. Seven applications were fi led for .news and four for .radio.

Th e .tv suffi x is already in use, supposedly for entities in the Tuvalu Islands of the Pacifi c Ocean.

Th e most applications for a single gTLD was 13 for .app. Tech savvy Google applied for 101 gTLDs, includ-ing .fun, .diy, and .youtube.

Some of the applications are obvious. Th e auto makers you’d expect to fi led for .chevy, .ford, .honda and .toyota. Both ABC and CBS have applied for their respective three-letter gTLDs. Th ere’s no application for NBC, though parent company Comcast did fi le for .comcast.

Th e city governments of Paris and Taipei applied for .paris and .taipei respectively.

We couldn’t fi nd any applications for .tucson or .arizona.

Some of the applications suggest marketing inten-

tions. It doesn’t look as if Discover cards is going to give up on its cash back bonus program because it applied for .cashbackbonus. But if the folks over at KGUN 9 are interested in making more of their “9 On Your Side” positioning campaign through a gTLD, it looks as if they might want to strike up a conversation with Nationwide Insurance, which has applied for .onyourside.

And it looks as if there might be a food fi ght between Safeway and Wal-Mart, both of which have applied for .grocery. In cases where there are multiple applications, ICANN said the applicants will get an opportunity to work things out amongst themselves but if there’s no solution then it will auction off the gTLD to the highest bidder.

Last month ICANN held a lottery to determine the order in which it will process the applications that have been received so far. Among other things, ICANN needs to sort out about 260 objections that have been fi led such as the country of Argentina objecting to clothing company fi ling for .patagonia. Th e fi rst gTLD should be up and running by June. And once it gets rolling, ICANN anticipates issuing about 20 of them a week. At that pace, it will take about a year and a half to get through the fi rst batch.

So by the end of the year it should be common to see URLs ending in .aaa, .bbb, .ibm, .sanofi or .accenture.

For those among us who like to hold more tangible assets, this fuss may seem overblown.

But consider that a website registry near Seattle named Donuts, spent $55 million applying for more than 300 gTLDs, including .taxi, .camp, and .investment. According to the Christian Science Monitor it wants to rent out the addresses to businesses. For instance, a Tucson cab company might register tucson.taxi.

But that’s nothing, the Monitor notes. Th e website URL investing.com was fi rst registered in 1995 and sold last month for $2.4 million.

A business opportunity we wish we would have thought of.


OPINIONWAKE UP, TUCSON

Re-Branding Tucson: Why you should care about itTourism is a very important cog in Pima

County’s economic machine. Most everyone here knows that — or should.

Tourism uses the assets that are already here. It doesn’t require any environmental impact studies. Neighborhood associations don’t complain about it.

Still the sector has dealt with some incredible negatives: Th e state’s SB 1070 anti-illegal immigration law, a call for a boycott by our own U.S. Rep. Raúl Grijalva, the horrible economy and practically a lost decade at the Metroplitan Tucson Conven-tion and Visitors Bureau (MTCVB).

Despite these, most of the assets are still here and hanging on. And they’re starving for a comeback.

Enter “Visit Tucson,” the new handle for the MTCVB.

A customer survey and a visitor analysis have been completed — something I don’t know has ever before been done for the industry. And now comes the re-branding of Tucson.

It’s time to distill what is special about the Tucson region as a destination and make sure it connects with people the industry needs to target to come here for a visit.

Th is is not a declaration of love for Tucson, it’s something that has to be

salable. “Real. Natural.

Arizona,” the campaign that’s been used for the last 10 years, hasn’t connected with anybody outside those who dreamt it up — and they already live here.

As a side-note, I know there is some indigestion that a local agency wasn’t selected to head up the Visit Tucson branding eff ort. Normally, I would be right there, too. But not this time.

Tucson needs an expert in national branding with a fresh perspective on what will resonate with people outside the region. MMGY Global, headquartered in Kansas City, Mo., with offi ces in New York, Denver and Orlando, is a major league hitter in the travel industry and we’re lucky to have its vice chairman Peter Yesawich in our corner. He is regularly called upon for his respected and insightful knowledge on the habits and preferences of travelers.

Th e rebranding of Tucson is going to be a process that will take several months. Th ere will be ample time and opportunity

for all who are interested to opine and contribute. Th ere will be forums open to the public and many one-on-one opportu-nities with industry leaders, economic development groups and elected offi cials. Th e more contributors, the better.

First, MMGY will get the broad expanse of the Tucson experience that will be distilled down to the brand. Secondly, the more people who contribute, the more people who will be predisposed to buying in to the eff ort and actually implementing and preaching the brand gospel of Tucson.

Th is brings me to a critical aspect of the brand. Whatever comes out of the process, we must embrace it.

From the hotel sales manager to the government bureaucrat to the front windows of restaurants, the brand must be shared with as many as possible.

Th e moment the brand is forged, the real battle starts. It will be all hands on deck.

Chris Wilson, a professor at the Univer-sity of New Mexico, wrote a fascinating book called “Th e Myth of Santa Fe.” It details how a community transformed itself from a declining provincial state capital of 5,000 people in 1912 into an internationally recognized tourist destination. In recent

decades Santa Fe has continued with a comprehensive eff ort through special events, cultural promotion, architecture, cuisine, branding and marketing to create a Soutwestern destination with tremendous international appeal.

I would argue Santa Fe has better international buzz than even our beloved Tucson. Santa Fe’s eff ort is something we should look at as we implement Tucson’s new brand.

Tucson is an amazing destination. Our new brand will help our region’s eff orts for economic development, improved airline service and others that will benefi t us all.

Th e brand will be a distilled brew of the things we know resonate: great weather, Sonoran cuisine and infl uence, Native American culture, outdoor activities, the Unversity of Arizona, the Old West, aviation and the international community that lives here. Th ere are more, I am sure.

Make sure you get out and tell Visit Tucson what they are.

Contact Chris DeSimone at [email protected]. DeSimone co-hosts “Wake Up Tucson,” 6-8 a.m. weekdays on Th e Voice KVOI 1030-AM.

GUEST OPINION

Why professional golf is good for our kids Sure, we’re all proud to have Rory

McIlroy and 63 other phenomenal golfers come to Southern Arizona each February for the World Golf Championships-Accen-ture Match Play Championship. It’s a bona fi de privilege for our community to host his event; our local economy benefi ts, too. But what’s really special about the Accenture Match Play is the money raised and distributed through the Tucson Conquista-dores so our underserved youngsters have opportunities to participate in sports.

Since 1962, our organization has embraced a simple yet important mission: to support youth athletics in Southern Arizona. Th rough several diff erent projects, and now primarily through our partnership with the PGA Tour, the Conquistadores have raised and distributed $26 million over the past fi ve decades.

On behalf of the 200 members of the Tucson Conquistadores, thank you, Southern Arizona, for making a diff erence in our children’s lives. Your support has enabled us to send kids to camps, provide special needs Little Leaguers with their Field of Dreams, and help shape the lives of

young people from all walks of life by reinforcing values like integrity, respect and perseverance through the game of golf at Th e First Tee of Tucson.

Th e funds raised during the Accenture Match

Play Championship are designated for Tucson Conquistadores’ youth charities. Boys and Girls Clubs in Tucson, Sierra Vista and Nogales, Pima County Special Olym-pics, the Curtis Park Indoor Sports Center, Tucson and Pima County Junior Golf Programs are benefi ciaries; teams and athletes in track and fi eld, gymnastics, soccer, even junior rodeo are also helped when needs arise.

For the seventh consecutive year, the Tucson Conquistadores has partnered with Accenture and the PGA Tour to support the Accenture Match Play Championship. Local fans, visitors and hundreds of millions of

viewers in 224 countries will watch the top 64 golfers compete at the Golf Club at Dove Mountain on Feb. 18 – 24.

Keeping this coveted event in Tucson must be a priority. Th e event rewards us by instilling tourism, capital and investment throughout Southern Arizona — the annual economic impact of this tournament is estimated to be $75 million to $100 million. Th e success of this event, as with any PGA Tour event, is measured by the community’s involvement. To ensure this tournament’s success, we need your participation and attendance.

Your support of this tournament does three things:

• It gets you up close and personal with the fi nest golfers in the world;

• It ensures the Accenture Match Play continues in Tucson;

• And perhaps most importantly, it raises money to help so many children throughout our community.

I encourage you to enjoy this year’s tourna-ment by purchasing

tickets. With prices starting at $25, it’s a great value, too. Visit our website or call our offi ce. Th e young athletes of Southern Arizona thank you.

Brandt Hazen, president of HazenEnterprises, is also the current president of the Tucson Conquistadores, which iscelebrating its 50th anniversary.

BRANDT HAZEN

CHRIS DeSIMONE

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BIZ FACTS

World Golf Championships - Accenture Match Play ChampionshipFeb. 18-24 Ritz-Carlton Golf Club, Dove Mountain6501 W. Boulder Bridge Pass, MaranaTickets: Individual day tickets well as week-long tickets, along with special packages are available. www.tucsonconquistadores.com(520) 571-0400


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

STAFF

InsideTucsonBusiness.com

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PUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

STAFF WRITERROGER [email protected]

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LEGAL REPORTERCELINDA [email protected]

WEB PRODUCERDAVID [email protected]

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ART DIRECTORANDREW [email protected]

ADVERTISING DIRECTORJILL A’[email protected]

ACCOUNT EXECUTIVE LAURA [email protected]

ACCOUNT EXECUTIVEALAN [email protected]

ACCOUNT EXECUTIVEDAVID WHITE [email protected]

INSIDE SALES MANAGERMONICA [email protected]

DIGITAL SALES MANAGERJIM [email protected]

CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

EDITORIAL INTERNLAUREN SHORES

OPINIONSPEAKING OUT

An open letter to City Councilman Steve Kozachik Dear Steve:You are a courageous person. You must

have done a lot of soul searching before leaving the Republican party to become a Democrat.

When you were elected to the City Council, many Tucsonans assumed you were very conservative. Some scratched their heads and wondered how you could win election in Tucson!

After all, Tucson is supposed to be a “Democratic stronghold,” and aren’t all Republicans “far right?” Th e latter assump-tion was hardly fair. But to the surprise of most, you were a moderate, and moderates are a rare breed in the Grand Old Party.

I look back on my own similar political party journey. Forty years ago I left the Republican party and became a Democrat. Th e Oregon Democratic Party recognized I was a moderate and asked me to serve on a local Democratic central committee because they wanted “balance” in that group, which was quite far left. Can you imagine this happening in today’s political world?

When I ran for the Tucson City Council, I was proud to run as a Democrat. Demo-crats are supposed to care about people’s

lives, and I cared about people — a good match! After my election, I began to realize I was a council member for ALL people, not just the Democrats. Besides, my ward, Ward 2, is Republi-can!

I began to make decisions based on that premise, to the dismay of the Democratic Party. It wasn’t long until I was considered a pariah by many Democrats, and I found it increasingly uncomfortable to attend Democratic functions where I was often not even acknowledged. I suspect this situation is familiar to you too, but from the Republican side of things.

After some consultation with close friends and advisors, I realized I could not continue as a Democrat. I re-registered as an independent voter. I have always been a very independent person. It seemed natural to lean in that direction at the time, and it still does. I had no plans to further my political career, so that part did not

matter.Yes, Democratic Party leaders say they

accept “all shades of blue” and in many ways, that is true. However, they also will want you to follow their party platform. At the Tucson city council level of politics, that is impractical.

Whether you are dealing with the budget, garbage, water, or police offi cers, public policy should not be developed based on party politics. It has to be done based on what is prudent, cost eff ective, and in the best interests of the residents of Tucson.

Whatever is done must constructively shape the future of the city as well. I believe that to date, you have kept that in mind. I hope your “new party” will respect you for that, as so many of your constituents already do.

What will happen when you decide to continue to do things as an advocate for the city rather than because of what the Democratic Party might want you to do? You may be summoned to a meeting with party offi cials. I suspect you will be more forthright and less defensive in those confrontations with the party echelon than I was.

However, you must be true to yourself and your Ward 6 constituents, and that has to be uppermost in your mind. I believe that it will be. Obviously this has been part of your past thinking, which probably caused you to leave the Republican Party.

Your strategic move to the middle is wise because it refl ects where you are politically at this place in time. But don’t let the public judge you and put you in a narrow box. Our society today seems content to do just that rather than trying to look at issues and people in a more balanced way.

I wish you the best as you continue to work with your colleagues to move Tucson forward. Th at has not been easy in these stressful economic times. But I have complete confi dence that you and the other council members can work together so the city will again fl ourish as it has in the past.

- Carol West

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

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