Inside Tucson Business 01/06/12

Finally, foreclosure fi lings are falling2011 finishes with 19 percent fewer

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Defenders of land and seaRaytheon lands $45M anti-missile defense contract

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Cambiano basura por tesoroMexican entreprenuers turn discarded stuff into cash across border

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Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • JANUARY 6, 2012 • VOL. 21, NO. 31 • $1

Actor and fi lmmaker

Eric Schumacher

is one of the driving

forces behind Picture

Arizona, a locally based independent

fi lm company.

Local independent fi lm industry coming into focus

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R&A CPAs MARK 70th YEAR IN BIZ

PAGE 9

Firm builds client relationships by

‘taking’ their hats

Marana in sewer business, but could face issues with regulatorsBy Patrick McNamaraInside Tucson Business

As of 12:01 a.m., Tuesday (Jan. 3) the Town of Marana offi cially got into the wastewater treatment business.

Exerting its right under a recently passed state law, town offi cials took over the operation of a small waste-water treatment plant, which stands among the cotton fi elds in the northern reaches of Marana.

“We want to be able to fully utilize our water resources,” Marana Town Manager Gilbert Davidson said. “Th is enables us to fulfi ll our general plan and strategic plan goals.”

While Marana offi cials have said eu-phemistically that they need the facility

to control their own destiny, it’s water that the town really wants.

State and federal laws link urban growth with renewable water sources. For Marana, which has a minimal allot-ment of CAP water, that means access to effl uent, the water discharged from treatment facilities.

“If their desire is water resources, we would provide it,” Pima County Admin-istrator Chuck Huckelberry said.

Pima County is the last remaining Arizona county to operate a wastewater treatment system. It has off ered Marana treated water, but town offi cials say the deduction for conservation the county requires would sap most of the water.

Marana offi cials, including David-son, have accused the county of using

its control of the wastewater system to stifl e growth.

“Th at’s a fi gment of someone’s imagination,” Huckelberry said. He notes the county system has more than 270,000 hookups.

Th e county claims that Marana’s operation of the plant would run afoul of state and federal regulations because the town lacks proper permitting under the Clean Water Act. Davidson said the town has been working with the state to acquire the proper permits and said the ultimate authority on the matter rests with the governor.

Marana contracted with the com-pany WestLand Resources to operate the facility. It will pay $15,000 for the fi rst month and $9,500 for subsequent

months. Th e contract also provides for a 10 percent subcontractor fee.

Th e town and Pima County have battled in the courts for the facility since 2007, when Marana sought to annex the property, break an agreement between it and the county and take control of the treatment facility.

Pima County has challenged the constitutionality of the state law that al-lowed Marana to take over the facility. Th e county also plans a potential feder-al suit against the town on the grounds that it’s operating the treatment plant without permits.

Contact reporter Patrick McNamara

at [email protected] or (520)

295-4259.

PAGE 3

2 JANUARY 6, 2012 INSIDE TUCSON BUSINESS

70 years still counting.

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JANUARY 6, 2012 3InsideTucsonBusiness.com

BIZ FACTS

Picture Arizona LLCwww.picarizona.com

Public Notices 6Lists 7,8 Profile 9 Inside Media 11 Meals and Entertainment 14Arts and Culture 15Calendar 18

People in Action 16 Briefs 20Finance 22 Real Estate &Construction 23Biz Buzz 24Editorial 24Classifieds 27

EDITION INDEX

Move to rebuild local fi lm industry picks up momentum, investorsBy Patrick McNamaraInside Tucson Business

Years of preaching the gospel of indepen-dent fi lm may have begun to win converts for a pair of local fi lmmakers.

Eric Schumacher and Alan Williams have talked to media, potential investors and just about anyone who would listen about reviv-ing the local fi lm industry through a hyper-local approach.

Th ey call their model Picture Arizona LLC, and it’s envi-sioned as a way to resusci-tate the long-ailing local fi lm industry. Schumacher thinks the plan would not only provide work for actors and fi lmmak-ers, but also have positive economic outcomes for many ancillary businesses.

“We’re talking about creating a business model where everyone wins and no one los-es,” Schumacher said.

Th e message hit home for local architect Randel Jacob, who has decided to team up with Schumacher and Williams on the Tuc-son-based fi lm company.

“One of the things that turned me on to this was the incredibly similar way making a fi lm is to making a building,” Jacob said.

He and his wife Tammi run Randel Jacob Design Group, they were moved by the collab-orative nature of fi lm and process of starting from a clean slate to create something new, all things that Jacob said had parallels in design and construction work.

“I wanted to be a part of that process,” he said.

Th at process, or at least what the partners in Picture Arizona hope to initiate, is to gather enough funding from investors to fi nance as many as six independent fi lm projects fi lmed over the course of 18 months.

Each of the projects will require $100,000 to $3 million in funding, depending on the nature of the fi lm.

Schumacher said it would be important to hire “named talent” to work on each fi lm as a way to attract industry interest and audience.

Th e majority of cast and crew for the fi lm projects would be locally based, Schumacher said.

Picture Arizona partners have already begun to read script proposals and evaluate potential fi lm projects. So far, two fi lms have been selected.

Th e fi rst, a project of Williams’ about a team of paramedics, is planned as the initial full-fl edged venture for the company.

Williams wrote and plans to direct the fi lm once the funding picture takes form.

Th e second project on tap is a period drama already in production set in late 1800s Flagstaff called “Th e Forsaken.”

Southern Arizona fi lmmaker Justin Krein-brink will direct the fi lm. He’s teamed up with Picture Arizona for portions of the fi lm that will be shot in Southern Arizona.

“It’s coming together,” Kreinbrink said about Picture Arizona.

He said it would take eff orts like his and those of Schumacher and Williams to re-es-

tablish Southern Arizona’s reputation as the premier location for fi lmmaking that it once was.

To make that happen and attract interest, Kreinbrink said the local fi lm industry has to get some successes under its belt.

“Th ey’re (Hollywood) not coming back without an infrastructure,” he said.

Th e fi lm project he’s working to complete has begun to build on that infrastructure and has gained distribution off ers and commit-ments from well-known actors.

“I think we are experiencing a new renais-sance of independent fi lm,” Schumacher said. “(‘Th e Forsaken’) is a vehicle to facilitate that.”

Jacob said he decided to get involved with Picture Arizona out of a sense of commit-ment to southern Arizona, an area that has

been home to fi ve generations of his family. “I’m motivated from a spiritual and philo-

sophical sense more than a monetary sense,” Jacob said.

Like many long-time Tucsonans, he recalls the era when fi lm crews were a common sight in the area.

When he was growing up, he said, there were three local events he looked forward to.

“Th e rodeo starting, Spring Training and movies fi lming in Tucson,” Jacob said.

He fi rst learned of Williams’ and Schu-macher’s plan to restart the local fi lm industry from a story about Picture Arizona published in Inside Tucson Business in April.

Th e story inspired him to contact Schu-macher and eventually get on board.

“Th is is more than just and inspiration, it’s a reality we’re about to embark upon,” Jacob said.

Picture Arizona partners continue their quest for believers in local fi lm. Th ey have dis-tributed investment packets to local business leaders and plan to hold an information ses-sion in the near future.

Contact reporter Patrick McNamara at pmcna-

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

Here’s your schedule,Coach Rodriguez

New University of Arizona football head coach Rich Rodriguez will have plenty of oppor-tunities to get used to his new digs at Arizona Stadium next season as host to eight home games, the most the school has had since 1988.

Th e team will travel for four road games, according to the schedule released Wednes-day by the Pqc 12.

Th e Wildcats will start the season with three home games and will never have back-to-back road games.

Th e schedule:• Sept. 1 - Toledo • Sept. 8 - Oklahoma State (this season’s

Fiesta Bowl champions)• Sept. 15 - South Carolina State• Sept. 22 - at Oregon• Sept. 29 - Oregon State• Oct. 6 - at Stanford• Oct. 20 - Washington (family weekend)• Oct. 27 - USC• Nov. 3 - at UCLA• Nov. 10 - Colorado (homecoming)• Nov. 17 - at Utah• Nov 23 (Friday after Th anksgiving) -

Arizona StateAs part of the announcement, the Pac 12

said its new rights agreements with ESPN and Fox as well as the launch of the new Pac-12 networks in August means that every game in the conference will be available to a national audience though the exact sched-ule is yet to be determined.

Atlas moves more outthan in to Arizona

Atlas Van Lines says it moved 2,206 households out of Arizona in 2011 and 2,056 households into the state. It’s the fourth year that outbound moves from Arizona have ex-ceeded inbound moves a time that coin-cides with the Great Recession.

At its peak of inbound moves in 2004, At-las moved 3,616 households into the state with 2,771 going out.

In 2010, Atlas said it moved 1,942 out of the state and 1,798 in.

Ohio had the largest outbound move-ment in 2011 with 2,876 moving out and 1,890 moving in. Washington, D.C., had the highest percentage of inbound moves last year. Th e only other states that more house-holds moving in than moving out were North Dakota, New Mexico, Texas, Alaska, Tennessee and North Carolina.

CONTACT US PUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

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ADVERTISING DIRECTORJILL A’[email protected]

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

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NEWS


NEWS

By Curt PrendergastInside Tucson Business

Like ants on an ice cream cone that has fallen on the sidewalk, a fl eet of small trucks move up and down Interstate 19 carrying furniture, appliances, and other household items cast aside by Arizonans.

Many of them, often with loads stacked precariously higher than the roof of the truck, are driven by Mexicans and Ameri-cans living in Sonora.

Th ese entrepreneurs of the informal economy drive to Tucson and Phoenix to buy clothes, beds, washers, dryers, refrigerators, cabinets, chairs and anything else they can fi nd at yard sales, on Craigslist or at Salvation Army and Goodwill auctions.

Some of them re-sell these second-hand items at the Tanque Verde Swap Meet in Tucson, but the trucks on I-19 are headed to swap meets in Nogales, Sonora or to points farther south of the border.

Before donated merchandise makes it to the trucks, some of it is sold at auctions like the one held every weekday morning at the Salvation Army Th rift Store on South Sixth Avenue. Vendors bid on furniture, appli-ances and ‘brick-a-brack’ like jigsaw puzzles and socks.

“Everything that’s not store-worthy comes out here,” said Joel Elson, auctioneer

and manager of As Is and Car Sales for the Sixth Avenue Salvation Army.

Th e jovial mood in the auction yard turns serious when the bidding starts, indicating that the auction is more than just a way for people to furnish their new apartment on the cheap.

“Most of the vendors that come here, this is their livelihood,” said Elson.

Gilberto Mendoza has been coming to the Salvation Army auction for 20 years. He buys used items to re-sell at his store in the

Canoas Swap Meet in Nogales, Sonora.“I’ve spent a lot of money here,” he said

as he fl ipped through the $30 he had, which he didn’t think was nearly enough. “I want to buy everything,” he said with a grin.

Jim Toevs, who gained local renown when he ran against Jim Kolbe for U.S. Congress in 1992, now owns a hostal in Alamos, Sonora. He comes to the Salvation Army auction once a month and spends a

Pickup trucks on I-19 turn Tucson’s trash into treasure in Mexico

A pickup truck loaded with beds approaches the DeConcini Port of Entry in Nogales, Ariz.

TRUCKS PAGE 5

Vendors get ambitious while loading their truck after their auction purchases.

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Sierra Vista Mall tobe split off from GGP

Mall owner General Growth Properties Inc. says it plan complete a spin-off Jan. 12 of a subsidiary to be named Rouse Proper-ties that will own 30 of its weaker malls, in-cluding the Mall at Sierra Vista.

Th e goal is to have Rouse Properties, which will operate as a separate publicly-traded company, focus on buying and reha-bilitating lower productivity malls in sec-ondary and tertiary markets.

In the meantime General Growth, which emerged from bankrutpcy protection in No-vember 2010, will keep 137 of its best per-forming malls within its portfolio. Th ose in-clude Tucson Mall and Park Place Mall.

According to the company, the Mall at Sierra Vista has a total of 365,853 total square-feet of leasable space, 169,361 of which is within the mall and the remainder is made up of pads surrounding it. It says 94.8 percent of the mall is currently under lease. Anchor tenants include Dillard’s, Sears and Best Buy.

Silicon Valley Bank toset up Arizona shop

Silicon Valley Bank, the commercial banking division of SVB Financial Corp. headquartered in Santa Clara, Calif., said Tuesday it will open an information tech-nology and operations facility in Tempe this year.

SVB, which has 26 U.S. offi ces, specializ-es in providing capital and fi nancing to en-trepreneurial companies ranging from startups to multibillion-dollar corporations. It’s also well-known for providing fi nancing to the premium wine industry.

Silicon Valley Bank already had three people working in Tempe, but with these plans, that group will grow to at least 220.

Th e bank is the second company to re-ceive tax incentives from the Arizona Com-merce Authority through a $25 million “Ari-zona Competes Fund,” nicknamed the “Deal Closing Fund.” Clear Energy Systems, a Tempe-based manufacturer of portable en-ergy generation systems, received the fi rst package of tax credits, incentives and po-tential job-training grants in October. To qualify for the incentives, companies must achieve certain performance measures, such as having an average employee wage above the county’s average.

In SVB’s case, the bank was also consid-ering Dallas, according to Greg Becker, president and CEO of SVB, who said the in-centive package was just a small factor in the bank’s decision to go to Tempe, saying the proximity to its California headquarters and the number of technology and life sci-ence businesses also played a role. Among its current clients is Tucson-based SynCar-dia Systems Inc., maker of the only Food and Drug Administration-approved Total Artifi cial Heart.


few days in Tucson buying inventory before he heads back to Alamos, a town of about 10,000 people, including some 400 U.S. expatriates, located south of Hermosillo.

“I buy anything I think I can make a buck on,” said Toevs. “If you watch, you can fi nd some incredible deals.”

Th ese incredible deals sometimes involve buying merchandise in less-than-perfect condition. It’s always “as is,” Elson said with the smile of an experienced auctioneer. After leaving the auction, broken items will be repaired and unsightly marks polished away in preparation for the weekend swap meets.

Up and down I-19Th e auction itself only lasts about 30

minutes, but many buyers stay for another hour or so to load their trucks. Th is is an art form all its own. Just when it looks like they can’t possibly fi t anything else on the truck, a few dozen offi ce chairs are carted over and the loading continues.

“You’ve got to want it,” said Mendoza.Some vendors may stay in Tucson to

make more purchases, but for those with full truckloads their next move is to drive down I-19 to Nogales. Some will sell their wares at swap meets in Nogales, Sonora while others, like Toevs, will continue south to the small towns of Sonora.

Importing by suitcaseI-19 dead-ends in downtown Nogales,

Ariz., but the journey continues for these second-hand treasures. Th e next step for vendors is to move their wares across the border, which can be a tricky operation.

When Mendoza gets to Nogales, Ariz. he puts his merchandise in storage for a day or two and then takes it across bit by bit. With a little subterfuge, clothes and small items

can be carried over in suitcases.“Th ey act as if they were on vacation in

Arizona. If you have four kids, then each one carries a suitcase,” said Mario Ramirez, a vendor at a furniture store in the Canoas Swap Meet. “Sometimes you have to bring the whole family,” said Roberto Romero, administrator of Canoas Swap Meet.

Th ese informal importers can be seen every day at the ports of entry in Nogales. People carrying merchandise must push a button at the Mexican Customs inspection table before they are permitted to enter Mexico. If the light turns green, they can go across without inspection. But if the light turns red, they will have to open their suitcases and hope for the best. It can be even more diffi cult to cross with larger items. Beds and furniture have to be taken across by truck and may be subject to an importation tax, said Romero.

For vendors headed to the small towns of Sonora, the same process unfolds at the Mexican Customs checkpoint at Kilometer 21. After they get through the checkpoint, they often send the items by mail to their next destination, said Martin Quezada, a vendor who works with Ramirez.

Treasure at the Swap MeetOnce across the border, the second-

hand merchandise that came down I-19 is joined by new clothes bought in Los Angeles and Guadalajara, Mexico, said Romero.

Much of it is sold at the Canoas Swap Meet, located about a mile south of the Mariposa Port of Entry in Nogales, Sonora. Th e swap meet opened in June 1990 with 30 vendors selling out of tents, said Romero. Since then it has grown to 560 stores housed in permanent buildings resembling an outdoor mall, but with better food.

Th e unnamed stores that line the crowded “avenues” in the swap meet off er a seemingly endless variety of goods and services.

“We sell everything, everything you would have in a house,” said Quezada. In addition to furniture and appliances, customers can buy laptop computers, eat dinner and get a haircut.

Th ere...and back againIn a way, the mission of the Salvation

Army is completed by these truck-driving entrepreneurs.

“People that buy here are maquila people,” Mendoza said, referring to the factories just south of the border which are owned by U.S. companies and staff ed by Mexicans. “Th ey make 1,000 pesos ($80-$90) a month so buying a bed is a big choice for them. Th ey either eat or buy a bed,” he said.

In addition to local maquila workers, customers come from Obregon, Santa Ana, Guaymas and other Sonoran towns. Th ey have few opportunities to buy goods made in the U.S. because many do not have a visa to cross the border, said Victor Ocana, who sells refrigerators, washers, and dryers at the swap meet.

Th ey come to Nogales because the price goes up as you head south, according to Ocana.

“If you buy a washer here for 1,000 pesos, the same one goes for 2,000 or 3,000 in Santa Ana and beyond,” he said.

Th ese small-town Sonorans come to the border and then head back to their hometowns in a mirror image of the pickup trucks moving up and down I-19 north of the border.

Having sold the merchandise they bought at auction, vendors head back up the highway and the process begins all over again.

TRUCKS | CONTINUED FROM PAGE 4

Gilberto Mendoza gets some help loading his truck before leaving for Mexico.

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This Week’s Good NewsUA ranks 99 in Forbes 100

Based on a broad mix of academic quality and affordability criteria, the University of Arizona is one of America’s “Best Values in Public Colleges,” accord-ing to “Kiplinger” magazine’s annual rankings.

The analysis, published in its February edition, looks at more than 500 public institutions, consid-ered to be “traditional four-year schools with broad-based curricula.” Schools were scored on areas in-cluding admission rates, student-faculty ratios, test scores of incoming freshmen, graduation rates, tu-ition, fees, room and board and financial aid.

Th e UA ranked No. 99, ahead of the Univer-sity of New Hampshire, which was No. 100. No. 1 was the University of North Carolina, which has held that spot for 11 consecutive years.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Carondelet fi xes While the healthcare industry within Arizona

and nationally is warning of dire consequences, word is leaking out that the “reorganization and revitalizaton” going on at Carondelet Health Network addresses much more acute fi nancial problems within the organization.

Indeed, the move by parent Ascension Health to bring in James K. Beckmann replacing Ruth Brin-kley as president and CEO for Carondelet Health Network was part of the plan to right the ship.

One of the higher-ranking offi cials to leave the organization last month was Leticia “Let-ty” Ramirez, who was vice president of advo-cacy, government and community relations.

Meanwhile, there are those within the orga-nization who say they’re hopeful the changes will bring about some much needed changes to organizational structure.

Hello to buybuy Baby Here’s the kind of news from the retail sector

that starts the new year off on a positive note: a new retailer is about to enter the market.

Th e New York-based superstore buybuy Baby has leased 27,000 square-feet of the 41,000 square-foot former Linens ’N Th ings store at 7401 N. La Cholla Blvd. in Foothills Mall. Th e store had been vacant August 2008 when Lin-ens ’N Th ings was liquidated in bankruptcy.

Interestingly, buybuy Baby is a subsidiary of Bed Bath & Beyond, a primary competitor to Linens ‘N Th ings. Th e buybuy Baby concept fo-cuses on merchandise for newborns and tod-dlers and includes learning and development products, clothing, strollers and furniture.

Store offi cials say they don’t have an open-ing date set yet. Th e Foothills Mall store will be buybuy Baby’s third location in Arizona. It al-ready has stores in Chandler and Scottsdale.


PUBLIC NOTICESPublic records of business bankruptcies and liens filed in Tucson and selected filings in Phoenix.

BANKRUPTCIES

Chapter 11 - Business reorganization SSS New Cafe LLC, 2990 N. Swan Road, Suite 145. Principal: Steven Schultz. Assets: $31,368.00. Liabilities: $149,436.15. Largest creditor: Internal Revenue Service, San Francisco, $78,557.00 (contingent, unliquidated and disputed). Case No. 11-34472 fi led Dec. 21. Law fi rm: Eric Slocum SparksTurnkey Development LLC, 131 Amado Montosa Road, Amado. Principal: David Adams, managing member. Estimated assets: More than $500,000 to $1 million. Estimated liabilities: More than $1 million to $10 million. Largest creditor: Not fi led. Case No. 11-34766 fi led Dec. 28. Law fi rm: Pro se. Case dismissed Dec. 30 for lack of required attorney representation.

LIENSFederal tax liens Parra’s Restaurant LLC and Jerry Boss, 2680 E. Valencia Road, Suite 110. Amount owed: $3,987.05.Dwight’s Auto Glass LLC and Dwight Lopez, 1431 W. Valencia Road, Suite 121. Amount owed: $4,721.26. Coss of North America Inc., 2163 E. Bedrock Lane, Oro Valley. Amount owed: $17,426.61.J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $117,516.22. Subs By Serendipity LLC and Lana D. Attar, 2545 E. Speedway, Suite 105. Amount owed: $4,302.51. Nanini Northwest LLC, 2120 W. Ina Road, Suite 200. Amount owed: $22,464.55. Gymboree Play & Music and Dos Amigas LLC, 7300 N. Mona Lisa Road. Amount owed: $10,308.15. La Olla Inc., 8553 N. Silverbell Road, Suite 102, Marana. Amount owed: $2,992.63. Ballistic Fabrication Inc., 2010 W. McMillan St. Amount owed: $17,090.39. Ian C. Prentice Agency LLC, 6343 E. 22nd St., Suite 161. Amount owed: $16,607.32. This Old Concentrator Inc., 3915 W. Tetakusim 2. Amount owed: $1,012.27. Ali Baba Enterprises LLC, 5401 N. Ventana Vista Road. Amount owed: $7,563.74. Don Yunker Design Inc., 1211 W. Linda Vista Blvd., Oro Valley. Amount owed: $9,071.24.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)

Nico’s Mexican Food and Ubaldo Garcia, 4231 W. Ina Road, Marana. Amount owed: $26,289.21. Nico’s Mexican Food and Arturo Carreon, 7114 E. Broadway. Amount owed: $11,920.39. Beaver’s Band Box Inc., 4570 E. Broadway. Amount owed: $18,818.39. Finished Granite Countertops LLC, 545 W. 22nd St. Amount owed: $2,153.66. Blue Mesa Studios and Mother Hubbard’s, 522½ E. Speedway. Amount owed: $1,831.17. Bloom’s Heating & Cooling, 802 S. Catalina Ave. Amount owed: $1,504.34. H.W. Company, 3344 N. Flanwill Blvd. Amount owed: $2,078.88.Enrichment Academy LLC, 4225 W. Ina Road, Marana. Amount owed: $6,871.72. Sparks Cycle Supply, 3409 E. Grant Road. Amount owed: $1,489.79.

Mechanic’s liens (Security interest liens of $1,000 or more fi led by those who have supplied labor or materials for property improvements.)Cemex Construction Materials South LLC against Hutton Partners LLC. Amount owed: $22,986.00. Peoria Winnelson Co. against Texas Roadhouse Holdings et al. Amount owed: $28,652.01. ABC Supply Company Inc. against Charter School Find Oro Valley LLC and Legacy Traditional Charter School. Amount owed: $1,496.38. Flooring Systems of Arizona Inc. against Tucson Medical Center. Amount owed: $31,578.23. Flooring Systems of Arizona Inc. against Target Corporation. Amount owed: $20,049.00. Winroc Southern Arizona Tucson Division against against CRS DQ Holdings LLC and JP Morgan Chase Bank NA. Amount owed: $3,774.24.

places the Phalanx gun and ammo with 11 missiles in a rolling airframe missile (RAM) launcher. Th e RAM, which is designed to in-tercept a threat farther out from a ship, gets its name from the fact that the missile spins in fl ight. Th e system is able to engage mul-tiple high-performance, supersonic and subsonic threats.

“It’s always good to intercept a threat as far out as you can,” Eagles observed.

A SeaRAM system was fi rst deployed in 2009 on LCS-2 USS Independence, a littoral combat ship. Raytheon’s fi rst international contract for SeaRAM was with Japan.

Th e Land-based Phalanx Weapon Sys-tem, called Centurion by Raytheon, was de-veloped to protect ground forces and high value sites in Iraq, Eagles said.

Patterson pointed out that the sensor suite and radars on the Land-based Pha-lanx have been improved to the point they are robust enough to pick up some-thing as small as a mortar round and shoot it down.

“It’s masterful engineering work that the guys and gals in Tucson do,” he said. While admitting it is diffi cult to quan-tify the eff ect of the Navy contract on the local economy, Patterson said, “All our contracts work to keep our engineering workforce together in Tucson, which is good for the local economy. A healthy Raytheon is a healthy Tucson, and we’re thrilled with this latest Navy contract.”

NEWS

Navy awards Raytheon $45.6M anti-missile contract

The SeaRAM system, engineered in Tucson at Raytheon Missile Systems,is designed to defeat high speed missile threats against U.S. combat ships.

By Alan M. PetrilloInside Tucson Business

Raytheon Company has been awarded a nearly $45.6 million cost-plus-fi xed-fee contract by the United States Navy for work on both sea and land-based anti-missile de-fense systems.

Th e contract is for engineering and de-velopment work on the Phalanx Close-in Weapon system, SeaRAM and Land-based Phalanx weapon system.

Phalanx and SeaRAM are fast-reaction terminal defense weapons used to defeat low-and high-fl ying, high-speed maneuver-ing anti-ship missile threats that have pen-etrated all other defenses, according to John Eagles, a Raytheon spokesman.

“Th is is an engineering contract that al-lows us to continue to enhance those exist-ing products by upgrading them and pro-viding them with the most up-to-date technology,” Eagles said. “We’ll continue to do the engineering work on those systems to improve the hardware and software in Tucson, while the production of the three systems will continue to be done in Louis-ville (Ky.).”

John Patterson, senior manager of public relations for Tucson-based Raytheon Mis-sile Systems, said the majority of the engi-neering work for the three systems is done in Tucson. Of the 12,000 people working for Raytheon in Tucson, half are engineers, but Patterson wasn’t able to comment on how many of those engineers would be working on the Navy contract.

“Th e Navy contract is important because it keeps the work in front of the engineering team for those systems,” Patterson said. “We have hundreds of programs in progress, but this is one of our most important programs. We’ve sold more than 890 Phalanx systems worldwide since its inception.”

Phalanx has been used by the U.S. Navy since its development in 1979, Eagles said. Phalanx is a computer and radar controlled 20-mm M61A1 Gatling gun that fi res armor piercing, discarding sabot rounds at a se-lectable 3,000 or 4,500 rounds per minute.

“It’s designed to intercept any threats that may get through a ship’s defense sys-tem that are deployed at longer ranges,” Ea-gles noted. “Phalanx is deployed on every surface combatant in the U.S. Navy and in similar ships in the navies of 24 other coun-tries. It’s the most widely-used ship self-de-fense system in the world.”

SeaRAM is a Phalanx system using mis-siles instead of a 20-mm Gatling gun to de-tect, track and engage a threat. SeaRAM re-

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DAILY NEWS — DELIVERED TO YOU!EVERY MORNINGDAILY NEWS — DELIVERED TO YOOUU!U





PROFILE70 years in business

R&A CPAs build their business on relationships by ‘taking your hat’By Roger YohemInside Tucson Business

If R&A CPAs ever do your business ac-counting or personal taxes, be prepared to hand over your hat to Don Radakovich. He runs the fi rm based on a wealth of old school values, such as meaningful relationships.

“We’ll tell clients we’re going to put on your hat, to better understand, concentrate on their problems. We want their hat, their trust, because we’ve got expertise to help that they don’t have,” said Radakovich.

Th at approach creates a deep bond that leads to frank, credible advice: “If I were you, this is what I would do.”

Founded in 1942 as Aaron Paul & Com-pany, the fi rm is observing its 70th year in business. Radakovich joined the company in 1967 as junior accountant at $500 a month.

After Paul’s death in 1970 the fi rm was sold. Following more mergers and acquisi-tions, it ended up being owned by global gi-ant Grant Th ornton of Chicago. In 1986, Radakovich and Henry Amado re-acquired the Southern Arizona client base for $1 mil-lion.

“Grant Th ornton couldn’t leverage what was here and wanted out of Tucson so we bought back our practice. We actually had to pay them for clients we had brought in over 20 years,” Radakovich said.

With partners Greg Anderson, Charlie Charvoz and Jeff Stephenson, and 1,000 lo-cal clients, they formed Radakovich and Amado.

Today, the partners are Radakovich and Tom Furrier, Tariq Khan, Phil Dalrymple and Rudy Paredes. Although the name has been simplifi ed to R&A CPAs, it belies their growth into more complex services.

“With some bigger clients, some special-ization is needed. Th ere’s taxes, auditing, business consulting, so you bring in the team approach to provide the best service you can,” said Khan. “Th ere are a lot of inter-national companies doing business here, in Mexico, in Europe.”

As clients evolve, R&A acquires new skills and the necessary technology to handle their changing needs. Specifi cally, tax laws change more than people realize, Khan said, leaving clients lost in the past.

“We try to stay ahead, be leading edge. Th ere’s been times the IRS came in to do au-dits and we explained to them the mechan-ics of the rules because simply, local agents

didn’t have the experience or training we had,” said Furrier.

In addition to traditional tax, assurance and accounting services, R&A is enhancing three relatively new specialties: internation-

al taxes, forensic accounting and integrated business services.

Paredes leads the international tax eff ort. As more people invest internationally, “there is a higher level of scrutiny. With a weak dollar and stronger foreign currency, investors from other countries are more compelled to capitalize on two really good opportunities. Th ey get the benefi t of their currency and depressed real estate prices,” he said.

Forensic accounting is Dalrymple’s ex-pertise, with a focus on fraud risk assess-ment and fraud investigation. In business, the average annual loss from fraud is 5 per-cent of revenue.

“Fraud occurs all the time and is more likely when business is good because it’s

easier to hide. You have people with incom-patible functions, they use their access to assets to misappropriate,” he explained. “But you don’t see it until a turn in the econ-omy. Margins get thin, people pay more at-tention, the numbers don’t make sense.”

Th e goal is to evaluate a company’s inter-nal fi nancial controls “to help prevent something bad,” Dalrymple added.

Integrated business services are a “back to the future” concept. As clients grow, R&A wants to maintain a single point of contact, yet provide access to specialists as needed.

“Primarily, it a one-stop approach. One person can get them all the way through their accounting, personal and corporate

Biz FactsR&A CPAs4542 E. Camp Lowell(520) 881-4900 randacpas.com Founded 194235 employees

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R&A’s fi ve partners have over 140 years of total experience. Seated from left are Tariq Khan and Don Radakovich. Standing from left are Phil Dalrymple, Rudy Paredes and Tom Furrier.

R&A PAGE10


returns effi ciently,” said Furrier. “We’ve got-ten so much into specialization, we want back to a point of simple connection.”

To achieve this, staff is being trained in “a more full-service approach” for clients who use multiple fi rms. Th is was “the standard approach in our industry in the 1960s and 1970s when you went to your accountant and they gave you everything you needed,” Furrier said.

During that era, the fi rm served clients such as Precision Toyota, El Grande Mar-kets, Capin Mercantile, cotton farmer Kirby Hughes, Sol Silverberg (founder of S. Silver-

berg & Sons), Williams Auto Sales, Central Alarm, Soleng Tom and Marved Construc-tion. Central Alarm, Precision Toyota and S. Silverberg & Sons are still clients, along with R&A’s original client: Sam Marcus of Marcus Mercantile in Nogales.

Other current clients include auto deal-erships, local resorts, real estate developers, local and national retailers, charter schools, non-profi ts, physician groups and proprie-tary work for business owners and their family members. Overall, R&A does about 2,500 tax returns annually.

“Back then, we’d go to the client’s offi ce and sit there working. Now, there’s email back and forth. You can do a complete job and never see the client,” said Radakovich.

“Over the past 10 years, relationship build-ing has diminished in business. Do you lose some loyalty? I don’t know.”

As technology has enabled all accoun-tants to be more effi cient, Furrier is ada-mant that there is no substitute for face-to-face business.

“Th ere is a tendency of younger genera-tions to make buying decisions through the internet. Th eir fi rst step is Google, then maybe ask around, where Don’s generation would never hire somebody that their uncle didn’t recommend. Th at has changed the way people hire professional services,” add-ed Dalrymple. “Th ey may fi nd you diff er-ently, but they do not jump around after they fi nd you.”

“Th at’s the answer to loyalty. Anybody can produce a tax return, but if you lose the one-on-one relationship, you don’t really know the client. When you learn to under-stand their business, you learn to under-stand their personal needs,” Furrier said.

“Don has been the king of that, able to help generations of businesses and families through their economic issues. Th at’s the unique part of us,” he added. “And during the course of time, you realize these people have become pretty close friends.”

Contact reporter Roger Yohem at

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

R&A | CONTINUED FROM PAGE 9

SALES JUDO

10 tips for tongue-tied techies to be eff ective sales professionalsToday I’m talking to you “non-selling

professionals.” Attorneys, accountants, architects, bankers, engineers of all stripes and colors, medical professionals and basically anyone who has mastered a technical profession and would rarely, if ever, be caught dead engaging in traditional selling activities but now must fi nd a way to generate revenues.

You’ve had the stamina and brains to wonk your way through the demanding curricula of highly selective programs and as a result, you may be more introverted than those of us in sales who got “A”s in recess, lunch and PE.

Now you’re faced with meeting VITOs, the Very Important Top Offi cers, a term coined by Anthony Parinello for “C-Level” positions in companies: chief executive, operating, fi nancial, information, market-ing and medical offi cers.

You already have demonstrated a high degree of intellect, self discipline and structured behavior, so here are 10 basic ways to build on those strengths to develop an eff ective selling system:

1. Little thingsMake sure you’re on time. Get directions

and build in plenty of time for traffi c. If you’re in an unfamiliar city, consider taking a cab.

Invest in a suit or a professional outfi t plus dress shoes. Have someone with good taste in business attire come along with you to check you out before you swipe your card. Clothing shouldn’t be too tight, too bright or too revealing. And engineers please, no ties printed with cartoon fi gures!

Since most bankers and attorneys have been trained in how to dress, they already know this.

Inspect your outfi t at least a few days before the big meeting to see if anything needs to be cleaned, ironed or repaired, especially shirt buttons. Shine your shoes. If you are fl ying, bring your outfi t as a carry-

on.Don’t check it with the airline, otherwise you run the risk of arriving in blue jeans, a polo shirt and tennis shoes as I once did.

2. PracticeOne of the

very best ways for technical professionals to inure themselves of diffi culties with public speaking is to join and actively participate in a Toastmasters’ Group. Stantec Consulting Services, for example, has a great one. If you are interested in learning more, contact Dave Hill at (520) 750-7474, ext. 7484.

3. Know where you areUsually the “authority gradient” — the

diff erence between your perceived professional stature and VITO’s status — is the least whenever VITO already knows you and has successfully done business with you. Th e gradient also fl attens if you were referred to VITO by a trusted advisor, including one of VITOs direct reports.

You also will feel more comfortable as you develop a solid understanding of what VITO needs and how you can help. Th is most often happens as you get farther into the sales cycle. But if you are in the early stages of the sales cycle, don’t yet know VITO and haven’t been referred, the authority gradient can be steep, and you may feel uncomfortable.

In these cases you may want to have a more seasoned associate take “fi rst chair” while you take “second” until you feel comfortable fl ying solo.

4. Your reputationWhile it’s OK to spend a few seconds

summarizing your credentials in your fi rst

meeting, too much time talking about the bona fi des of you or your company can be a real time sink. Your reputation should proceed you or you probably wouldn’t have made it into the room.

5. Use TAPSUse your natural skill for structure to

build a framework for the meeting:• Time - establish available time• Agenda - confi rm an agenda• Purpose - know your purpose or goals• Steps - End your meeting with the next

steps.

6. Don’t go down ‘rabbit hole’ Repress the techie urge — especially if

you’re nervous — to talk too much about the intricacies or what you know. It doesn’t work when your’re dating and it won’t work with VITO. In the early stages of the sales process, VITO should talking about 80 percent of the time.

For your 20 percent of the talking, stick to topics of interest to VITO (see item 9 below) and keep your responses short and to the point. Obviously, you’ll be doing more of the talking in the presentation stages of the sales cycle, but speak princi-pally to the requirements they specifi ed.

7. Speak to their listening’Th is is a corollary to the “rabbit hole” and

means you should avoid detail and summa-rize in the fewest possible terms that VITO perceives. VITOs have developed a percep-tual set of listening fi lters. Th ey “hear” words and concepts that are important to them and are “deaf” to the rest.

8. Read Faces And yet, despite the look on my face,

you’re still talking.Reading VITO’s facial expressions and

body language are essential parts of detecting whether you’re on track. To do

this you have to have the basic wiring for empathy.

9. Th e Th ree Wise Men and their Little Sister

Th is is a term coined by John Care, author of “Mastering Technical Sales, the Sales Engineer’s Handbook” as a mnemon-ic for a VITO’s set of interests.

Th e fi rst of the wise men is VITO’s desire to increase revenue. Th e second is to decrease expenses. And the diff erence between these two is the implied but silent wise man, increased profi ts.

Th e third of the wise men is mitigate risk. Th e “little sister” refers to the branding and image of the company and its products and services.

If you can fi t your off erings for the VITO into one or more of these four topics, then you’ll probably have a highly eff ective conversation.

10. Pain wins out over gainAuthor Care echoes the central theme of

Neil Rackham’s classic, “SPIN Selling,” by reminding us that VITO will usually listen for and select those of our products that are certain to do away with or reduce pain more often than those that promise future gain.

And, the more the pain hurts VITO personally (risk of termination, loss of bonus, promotion, stature or reputation) rather than institutionally (layoff s, cut-backs), the better for you.

Contact Sam Williams, president

of New View Group, at swilliams@

newviewgroup.net or (520) 390-0568. Sales

Judo appears the fi rst and third weeks of each

month in Inside Tucson Business.

SAM WILLIAMS

SALES


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MEDIA

Latest ratings: KOLD 13 wins, KGUN 9 is gaining By David Hatfi eldInside Tucson Business

KOLD News 13 continued to cement its position as Tucson’s most popular station for TV news among the coveted 25-54 year-old age group in the latest Nielsen ratings. Th e station’s local newscasts were No. 1-rated in each competitive weekday time slot.

But if the ratings were being covered as a news story by one of the stations themselves — or as a horse race — the headline-grab-bing change is that KGUN 9 News is gaining viewers, moving into second place with its early-morning “Good Morning Tucson” and 5 p.m. weekday newscasts as well as holding on to that position at 10 p.m. weekdays.

And even though KVOA’s News 4 Tucson is struggling among 25-54 year-old viewers, the station can still lay claim to having high household ratings which take in all age demographics, including older viewers. Most likely that can be attributed to habits built up over the 27 years until 2004 when KVOA dominated the local news ratings. At the same time the station has fallen victim to NBC’s prime time ratings collapse over the last several years, though KVOA’s prime-time ratings within the Tucson market generally out-perform NBC’s ratings nationally. KVOA’s execs continue to maintain that not counting viewers 55 and older fails to include signifi -cant viewers with higher disposable incomes, especially in these economic times.

Th ese latest local ratings were taken Oct. 27 through Nov. 23 and didn’t include Th anksgiving Day this year. Nielsen released them over the holidays. (See chart for details.)

Among other highlights in the local ratings:• KOLD News 13’s 4 p.m. newscast

launched in September to replace Oprah Winfrey’s show bested KVOA’s newscast,

which has been on the air since 2005.• Scott Pelley doubled the rating among

25-54 year-old viewers that Katie Couric garnered in May, her last month on the air as anchor of the “CBS Evening News.”

• KMSB’s “Fox 11 News at Nine” contin-ued to pull a respectable rating — and beating its only competition — in what will be its fi nal ratings before being taken over and produced by KOLD eff ective Feb. 1.

• Six of the market’s highest-rated prime time series are on CBS and fi ve (there was a tie for No. 10) are on ABC. Th e top 10 shows, ranked by the generally-accepted prime time criterion of viewers ages 18-49, are:

1. “Modern Family,” 8 p.m. Wednesdays, ABC KGUN 9

2. “Big Bang Th eory,” 7 p.m. Th ursdays, CBS KOLD 13

3. “How I Met Your Mother,” 7 p.m. Mondays, CBS

4. “Once Upon a Time,” 7 p.m. Sundays, ABC5. “2 Broke Girls,” 7:30 p.m. Mondays, CBS6. “Grey’s Anatomy,” 8 p.m. Th ursdays, ABC7. “Castle,” 9 p.m. Mondays, ABC8. “Two & Half Men,” 8 p.m. Mondays, CBS9. “NCIS,” 7 p.m. Tuesdays, CBS10. (tie) “Happy Endings,” 8:30 p.m.

Wednesdays, ABC “Survivor,” 7 p.m. Wednesdays, CBS• An estimated 173,000 viewers in the

Tucson market tuned in to watch ABC’s “20/20” hour-long special at 9 p.m. Nov. 14 in which Diane Sawyer interviewed U.S. Rep. Gabrielle Giff ords and her husband Mark Kelly. Th at represents 39 percent of all viewers watching TV at the time and 23 percent of all households.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

TUCSON TV NEWS RATINGS NOVEMBER 2011Rating, Viewers 25-54* Trend* Households*

Nov 2011

May 2011

Nov 2010

Nov2011

5-7 a.m. Monday-Friday

KOLD 13 News 13 This Morning 1.8 1.6 0.8 3.0

KGUN 9 Good Morning Tucson 1.6 1.0 1.2 2.3

KVOA 4 Tucson Today 1.3 1.5 0.6 2.4

KMSB 11 Good Morning Arizona 0.3 0.2 0.0 0.4

7-9 a.m. Monday-Friday

KVOA 4 Today Show 1.9 2.0 1.8 5.1

KGUN 9 Good Morning America 1.3 1.5 0.8 3.4

KOLD 13 Early Show 0.8 1.4 0.7 2.5

KMSB 11 Good Morning Arizona 0.2 0.2 0.5 0.6

11 a.m. Monday-Friday

KGUN 9 Morning Blend 0.2 0.3 0.1 0.7

12 noon Monday-Friday

KOLD 13 News 13 1.0 1.2 1.0 2.9

KVOA 4 News 4 0.8 0.6 0.4 3.8

4 p.m. Monday-Friday

KOLD 13 News 13 1.0 1.2 1.0 2.9

KVOA 4 News 4 0.7 0.4 0.5 6.2

5:00 p.m. Monday-Friday

KOLD 13 News 13 3.6 1.8 2.9 5.6

KGUN 9 KGUN 9 News 2.0 1.4 1.1 5.8

KVOA 4 News 4 1.4 1.6 1.3 6.2


KOLD 13 News 13 2.7 1.8 2.2 4.9

KVOA 4 News 4 1.6 1.5 1.1 5.0

KGUN 9 KGUN 9 News 1.5 1.4 1.0 5.0


KMSB 11 Fox 11 News 1.1 1.3 1.0 1.7

KWBA 58 KGUN 9 News-CW 0.2 0.2 0.2 0.3


KOLD 13 News 13 4.4 4.4 3.5 9.0

KGUN 9 KGUN 9 News 3.2 3.3 3.4 6.0

KVOA 4 News 4 2.8 2.7 2.1 5.1

*Notes:

Viewers 25-54: Each whole rating point represents an estimated xxxxx viewers ages 25-54 in November 2011 and 4,520 viewers in May 2011 and November 2010.

Households: Percentage of all households in the market.Trend: Indicates year-over-year ratings change by more than 15 percent in viewers 25-to-54 years old. 4 p.m.: “Oprah” aired at 4 p.m. on KOLD in May 2011 and Nov. 2010.


LOOKING BACK

Photographer Louise Serpa and her artistic life in the rodeo ring

“Never don’t pay attention,” especially if you are photographing bucking broncos in a rodeo arena.

Louise Serpa, who has been shooting rodeo photos for 50 years, has earned bragging rights and bruises, not to mention a few close calls. During a Colorado rodeo, a bull tossed her and broke her sternum. Another time she was “squeezed like a toothpaste tube” against a fence.

In her book, “Rodeo,” she warns: “I was told I could get in the ring, but not to get in the way. If you get run over, that’s too bad. So I learned pretty quickly not to get in the way. Saddle broncs are the most danger-ous. Th ey’re here one moment and there another.”

Rodeo events, promoted as the most world’s most dangerous sport, didn’t deter Louise from entering the arena. She wanted to take close-up photos. She steeled herself for the dangers inherent in being in the arena.

Today, Serpa is facing an even bigger challenge. She is in the terminal stages of peritoneal (stomach) cancer. Diagnosed three years ago, she has been upfront and open about her condition: “Chemo no longer works. When I need relief, I pour myself a shot of tequila.”

Her physicians have given her six months to a year to live. She hopes to live long enough to make it to the Tucson Rodeo (Feb. 18-26) one last time.

Born in 1925, Serpa was raised in New York City’s high society. Always a rebellious spirit, during her debutante party, she shocked guests when she slid down the banister at the Waldorf-Astoria Hotel tearing the back of her ball gown. Perhaps it was one of those “wardrobe malfunctions.”

Not long afterwards, a trip to Nevada made a lasting impression on her.

“I thought I had died and gone to heaven,” she said.

At 17 while working a summer job at a Wyoming dude ranch, she met Lex Connelly who introduced her to the world of rodeo. It would become her passion. While studying opera at Vassar College, where she graduated with a degree in music, Serpa frequently interrupted her studies to watch rodeos at Madison Square Garden.

At the time, Serpa was singing and dancing in nightclubs, and during World War II, she performed in USO shows. Music however, would not become her career.

After graduation, she married a Yale

graduate, a marriage that lasted only a few years. After her divorce, she headed west back to a place she loved. In 1953, she married Nevada cowboy Gordon “Tex” Serpa. Th ey moved to a ranch in Ashland, Ore., and started a family. Th ey had two girls, Mia and Lauren. Unfortunately that marriage also ended. In 1960, Serpa and her daughters moved to Tucson.

While living in Nevada, Loise Serpa had dabbled in photography taking images of cowboys competing in local rodeos.

“Th ey bought me fi lm and beers,” she recalled. Th e photographs weren’t artistic, the cowboys used them for training purposes. Later when she arrived in

Tucson, she turned the hobby into a career.When her youngest daughter was

diagnosed with rheumatoid arthritis, Serpa became desperate for money. She took rodeo photographs one weekend, and for 75 cents each, she sold 5-by-7-inch prints the following weekend.

“I shot from through the fence and I did anything I could to make money with my camera,” Serpa said.

Never trained professionally, her shutter skills and a natural instinct for anticipating

the action gained her entry into the professional arena. In 1963, when the Rodeo Cowboys Association gave her

permission, she was the fi rst woman ever permitted inside a rodeo arena.

By 1970, she had notched a lot of “fi rsts.”She was the fi rst woman permitted on

the course of England’s Grand National Steeplechase. She shot inside the ring at the Dublin Horse Show. She was featured in a national PBS-TV documentary, “When the Dust Settles.” And in 1995, her book “Rodeo” was published by Aperture.

Serpa has been inducted into both the Cowboy and Cowgirl halls of fame. In 2002, the Rodeo Historical Society (RHS) honored her with the Tad Lucas Award, an award that recognizes contributions and achievements made to rodeo. Perennial RHS emcee host, Clem McSpadden has acknowledged Serpa as “the Ansel Adams of our sport.”

Do you have a historical Tucson story

to share? Contact Mary Levy Peachin at

[email protected]. Her historical columns

appear monthly in Inside Tucson Business.

MARY LEVY PEACHIN

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Above: Monte Mask on Diablo, Tucson 2003. Left: Louise Serpa in ‘American Magazine’ 1949. Below: Hall of Fame Rodeo Clown Chuck Henson, Tucson.


ON GUARD

8 ideas to build integrity and trust in your business In 2011, we saw revolutions, natural

disasters, and fi nancial disasters. It was a year fi lled with events that even the keenest of prognosticators couldn’t — and didn’t — predict. For Better Business Bureau it was also a notable year. Th e organization realized its 99th year as community mediator, teacher, counselor, reporter, watchdog and proponent of marketplace trust.

No other organization, private or public, plays such a delicate yet vital role in the contemporary relationship between business and customer. For an organization approaching its centennial it is encourag-ing to see just how relevant we are in today’s marketplace.

BBB of Southern Arizona provided over 530,000 instances of service in 2011 — up from 517,000 in 2010. Instances of service refl ect the number of times we assist consumers in a calendar year. Th ere’s a long-standing misconception that the bulk of that assistance relates to complaints. In fact, only 3,200 instances of service provided in 2011 were specifi c to com-plaints. Th at doesn’t diminish the fact that our free conciliation process is a valuable tool for businesses and consumers. Th e whole idea is that if businesses voluntarily work toward fair resolution and overall

ethical conduct they uphold the premise of self regulation.

Based on what we see at BBB, it’s working. Southern Arizona businesses successfully resolved 72 percent of complaints through BBBs

voluntary process in 2011. In taking a closer look, those companies accredited through BBB resolved 98 percent of complaints fi led against them while those not BBB Accred-ited resolved 60 percent. It tells us that the responsible business sees the consumer’s demand for help in today’s complex marketplace as a worthy challenge and as a tremendous opportunity to assert leader-ship.

Th at’s good news for any of us who have a stake in the business community.

Another piece of good news is that in a socially networked world that makes it easier than ever for consumers to become more informed, more involved and more outspoken, we are seeing complaint volume decrease slightly each year for the past three years at this BBB. Each year we

GOOD BUSINESS

KIM STATES

can say we saw a drop in complaints, yet a rise in the number of reports being accessed on businesses, is a year that we can say we made progress on our mission of advancing trust in the marketplace. When trust gains ground we all win.

BBB and the 2,000 local businesses that support our mission aren’t alone in this belief and there’s plenty of research available to back that claim up. Writing in the Harvard Business Review, Deppa Prahalad says that higher levels of custom-er and employee trust are a major strategic advantage for fi rms in a competitive marketplace.

“Although there has been some erosion of trust from recent scandals, anecdotal evidence suggests that consumers are quite forgiving of strategic mistakes,” she writes. “People understand that the world is becoming more complex, that companies are under constant earnings pressure, and that innovation is really hard work. Th e mistakes that are hard for companies to recover from are largely from poor conduct. Consumers are not looking for perfection — they are looking for decency.”

Our statistics refl ect this. In 2011, southern Arizona consumers accessed BBB reviews on local companies more than 400,000 times. Th ey directly accessed our list of member businesses over 60,000 times. It’s apparent in the way our services are being used by consumers that trust is relevant.

Below are BBB’s Standards for Trust.

Use them to build trust and success with your customers in 2012:

• Build trust — Establish and maintain a positive track record in the marketplace.

• Advertise honestly — Adhere to established standards of advertising and selling.

• Tell the truth — Honestly represent products and services, including clear and adequate disclosures of all material terms.

• Be transparent — Openly identify the nature, location, and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

• Honor promises — Abide by all written agreements and verbal representations.

• Be responsive — Address marketplace disputes quickly, professionally, and in good faith.

• Safeguard privacy — Protect any data collected against mishandling and fraud, collect personal information only as needed, and respect the preferences of consumers regarding the use of their information.

• Embody integrity — Approach all business dealings, marketplace transac-tions and commitments with integrity.

Contact Kim States, CEO of the Better Busi-

ness Bureau of Southern Arizona, at kstates@tuc

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

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

week of each month in Inside Tucson Business.

TUCSON BBB ACTIVITY REPORT DECEMBER, 2011Top 10 most complained about industries Complaints Settlement%

1. Movers 6 33.33

2. Photographers-Portrait 5 20

3. Massage Therapeutic 4 0

4. Air Conditioning Contractors & Systems 3 66.67

5. Plumbing Contractors 3 100

6. Soaps & Detergents 3 0

7. Martial Arts Supplies & Equipment 3 33.33

8. Physicians & Surgeons-Medical-M.D. 3 100

9. Contractors - Electrical 2 50

10. Backfl ow Prevention Devices 2 100

Top 10 Most Inquired About Industries Inquiries

1. Roofi ng Contractors 1284

2. Air Conditioning Contractors & Systems 1141

3. Auto Repair & Service 1069

4. Plumbing Contractors 1007

5. Auto Dealers - Used Cars 795

6. Contractors-General 742

7. Travel Clubs 544

8. Property Management 489

9. Auto Dealers - New Cars 459

10. Dentists 430


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OUT OF THE OFFICE

Girl Scouts of Southern Arizona has teamed up with several local restaurants for a cookies and cabernet event that takes place from 6 - 9 p.m. tonight (Jan. 6) at Medicine Man Gallery, 7000 E. Tanque Verde Road.

Th e event features the dessert creations using Girl Scout cookies from the pastry chefs at Th e Abbey, Bob’s Steak & Chop House, Feast, Hub Restaurant and Creamery, Kingfi sher Bar and Grill and Pastiche Modern Eatery.

Tickets are $55 each and are available at the door. No matter how this cookie crumbles, you’re likely to enjoy some inventive desserts and fi ne wine while helping the Girl Scouts of Southern Arizona kick off their centennial celebration.

Skinny cocktails It may be a new year, but there’s a good

chance you’ve pledged to recycle the most famous of resolutions, to watch what you eat. Th e mixologists at RA Sushi have created “skinny” cocktails to help you watch the calories while still enjoying an adult beverage. Each of the cocktails has fewer than 200 calories and is priced at $8 each. One is called the Lychee-tennie (lemon vodka, lychee juice and agave

MEALS & ENTERTAINMENT

How about a Th in Mint with that cabernet?

nectar), the Skinny Ninja (vodka, grapefruit juice, agave nectar and yuzu puree) and the Th in Ginger (lemon vodka, agave nectar, yuzu puree and fresh ginger root).

Th ey’re being off ered through the end of February. I guess by that time they fi gure we’ll all have given up on the resolution.

• RA Sushi, 2905 E. Skyline Drive in La Encantada — www.rasushi.com — (520) 615-3970.

Cooking with JanosA new year also begins a new season of

cooking classes with noted chef Janos Wilder. Beyond learning a new culinary trick or two, what’s most enjoyable about participating in one of Wilder’s classes is how entertaining, relaxed and fun an experience it is.

On Jan. 21, Wilder will have a class on doing traditional-style Mexican cooking using ingredi-ents we have available to us these days. The menu will include Street Vendors Corn, Yucatan Cochinita Pibil, Lamb Barbacoa with Soup and Mushroom Chilaquiles. The class begins at 1 p.m. and lasts about 2½ hours. Cost is $50 per person.

Th e class includes the cooking demon-stration, a lively discussion, a beverage pairing and a tasting of the items that have been demonstrated. Recipes for all the dishes demonstrated will be provided, too.

You won’t fi nd many chef’s with as many accolades as Wilder has who is also as personable as he is. Th at’s what makes the experience so much more memorable.

• Janos, 3770 E. Sunrise Drive on the grounds of the Westin La Paloma Resort — www.janos.com — (520) 615-6100.


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UApresents hosts Zoppe Family Circus Jan. 13-15 in an intimate 600-seat tent that will be at the University of Arizona’s Rincon Vista Sports Complex, 2300 E. 15th St. Th e one-ring circus features acrobatic, eques-trian and canine acts and, of course, lots of clowning around.

Th e sixth generation, Italian family circus, is a great opportunity to see how old-world European circus began, and should be great fun for the entire family.

Adult ticket prices range from $29 to $34 with discounts to children, UA faculty and staff , students, military and seniors. Show-times are at 7 p.m. Jan. 13; 1 p.m., 4 p.m. and 7 p.m. Jan. 14 and 1 p.m. and 4 p.m. Jan. 15. Parking will be available for $3 at Sabbar Shrine, 450 S. Tucson Blvd.

MythBusters on stageJamie Hyneman and Adam Savage bring

their Discovery channel TV show “Myth-Busters” to the Centennial Hall stage for a show at 7:30 p.m. Jan. 14. Th e duo will perform on-stage experiments including audience participation and some recorded segments.

Adult ticket prices range from $44 to $104 with discounts for students and UA faculty and staff and children and can be purchased through UApresents. Centennial Hall is at 1050 E. University Blvd. on the UA campus.

Th eaterTwo productions of note open Jan. 14.

“Halley’s Comet,” starring renowned actor John Amos, is part of Invisible Theatre’s season and will be performed at 8 p.m. Jan. 14 and 3 p.m. Jan. 13 at the Berger Performing Arts Center, 1200 W. Speedway on the campus of the Arizona State Schools for the Deaf and the Blind.

Arizona Theatre Company debuts “Alfred Hitchcock’s The 39 Steps,” which features four performers portraying 150 different characters.

The curtain at the Temple of Music and Art, 300 S. Scott Ave., goes up at 8 p.m. Jan. 14 and will be performed at 8 p.m. Saturdays, 7 p.m. Sundays and 7:30 p.m. Tuesdays through Fridays through Feb. 4.

MusicTucson Symphony Orchestra’s Master-

Works concert series features “Variations on Tchaikovsky” with guest cellist Mark Votapek at 8 p.m. Saturday (Jan. 7) and 2 p.m. Sunday in the auditorium of Catalina Foothills High School, 4300 E. Sunrise Drive.

ArtTh e Temple of Music and Art Gallery,

330 S. Scott Ave. and managed by Etherton Gallery, is opening a show today (Jan. 6) by Tucson photographer Jeff Smith entitled “Drivescapes.” Th e series includes both Smith’s stunning lightning imagery as well as the stark and unsettling images of strip mall architectural culture to make for curious juxtapositions.

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

ARTS & CULTURE

OUT OF THE OFFICE

HERB STRATFORD

European circus in town

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PEOPLE IN ACTIONPROMOTIONS

Keegan, Linscott & Kenon, PC has announced Bret J. Berry, CPA, has been promoted to director of audit services. Berry has more than 14 years of accounting experience.

Keegan, Linscott & Kenon, PC also promoted Adam Lohr, CPA, to audit supervisor. Lohr graduated from the University of Arizona and started his professional career with KLK in 2008.

NEW HIRES

Alice Clarke Roe will direct Humana’s small business commercial sales team in Arizona. Roe has 30 years of sales

management experience, most recently in the mortgage industry. She joined Humana in July 2011 as a manager of sales administration for Arizona, Nevada and Utah. Roe has a bachelor’s degree in political science from the University of Michigan.

Keegan, Linscott & Kenon, PC has hired Sean M. Tanner, CPA as an audit manager. Tanner has more than 15 years of accounting experience, and has just relocated to Tucson from Lansing, Mich.

BRET BARRY

IT’S A NEW SERVICE

Now, your business can tell Inside Tucson Business about new hires, promotions and special awards online and from there we will tell everyone we can.

Go to our website — www.InsideTucsonBusiness.com — and across the top bar you’ll see a buttom for “People in Action” with an

option to submit your own item. There’s an easy-to-fi ll form that covers the main details and allows you to submit the information ex-actly how you want it. You can also upload a photo.

Once you’re fi nished, click on “submit your news” and you’re fi nished. Simple as that.

All of these notices will be posted online.

Inside Tucson Business will continue to publish an-nouncements in the printed publication each week and we’ll take them from the sub-missions we received online.

We hope you’ll fi nd this to be an easier and more convenient way to submit your business’s personnel announcements.

We look forward to hearing from you online.

TELL US ONLINE


DAILY NEWS — DELIVERED TO YOU!EVERY MORNING




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SPECIAL EVENTS

An Evening with Noam Chomsky: “Education for Whom and For What?”Wednesday (Feb. 2), 7 p.m. to 8:30 p.m.Centennial Hall, 1020 E. University Blvd. Contact: Lori Harwood [email protected] (520) 626-3846http://web.sbs.arizona.edu/college/chomskyCost: Free

Mexico Trade AutomationWednesday (Jan 18), 5:30 to 8 p.m.Viscount Suites Hotel, 4855 East Broadway

Info: Al Altuna [email protected] or (520) 977-3626 Cost: $30 (members & 1st-timers: $25)RSVP by Jan. 6www.saleo.org

Women Impacting Tucson luncheonMonday (Jan. 9), 11:20 a.m. to 1 p.m.Manning House, 450 W. Paseo RedondoRSVP: [email protected] or (520) 770-0714Cost: $25 (with RSVP by Jan. 5 - $20)

Women In Construction WeekTucson Chapter of the National Association of Women in ConstructionSunday (March 4) to Saturday (March 10)Contact: Michelle Quinn [email protected] or (520) 440-7627Website: www.nawictucson.orgFree

REGULAR MEETINGS

Cienega Rotary ClubEvery Tuesday5 to 6:15 p.m.Del Lago Golf Club 14155 E. via Rancho Del LagoInformation: http://cienegarotary.org

ConnectionsMonthly contacts luncheonFirst and third Wednesdays11:30 a.m. to 1 p.m.McMahon’s Prime Steakhouse 2659 N. Swan RoadRSVP: Cindy Morgan at (520) 403-8798 or [email protected]: $16 includes lunch

Conquistador ToastmastersEvery Wednesday7 to 8:30 p.m.ASBA conference center 4811 E. Grant Road, Suite 261

Contact: Saul Silven at (520) 885-3497 RSVP: requested for guestsCost: guests free

Desert Stars ToastmastersEvery Tuesday, noon U of A Science & Tech Park Building 9040, Room 2216Contact: Jim Eng (520) 663-9118 or [email protected]: www.Desertstars.freetoasthost.com

CALENDARInformation: www.foothillscluboftucson.orgCost: $20

Fountain Flyers ToastmastersEvery Tuesday, 6:30 a.m.Coco’s Restaurant, 7250 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

GRO IISecond and fourth ThursdaysSam Hughes Championship Dining446 N. Campbell Ave. Suite 150Info: www.grotucson.com

Independent Business Networking Tucson “IBNT”Second and fourth Tuesdays El Parador, 2744 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 Buffet, 5101 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 Grille, 60 N. Alvernon WayRSVP: Gale McGuire (520) 584-3480 or [email protected]

International Association of Administrative ProfessionalsSan Xavier Chapter monthly dinner & professional development meeting Every third Wednesday, 5:30 to 8 p.m.Sheraton Four Points Hotel, 1900 E. SpeedwayRSVP: Kay at [email protected] or (520) 883-1819Cost: $18 members, $20 nonmembers, includes dinner

“Real Estate Investment Plan”Keller Williams Southern Arizona1745 E. River Road, Ste. 245Third Tuesday, 6 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.

Eastside Cheers, where everybody knows your businessFirst and third Wednesdays, 4 p.m.Radisson Hotel, 6555 E. SpeedwayInformation: (520) 906-5037 or (520) 907-0326Cost: $8 guests

Entrepreneurial Mothers AssociationMonthly luncheonFirst Thursday, 11:30 a.m. to 1 p.m.Old Pueblo Grill, 60 N. Alvernon WayInformation: Sherry Goncharsky, [email protected]

Financial Workshops for WomenEvery Tuesday at 6 p.m. Barca Financial Group 5470 E. Speedway Suite A106Information: www.barcafi nancial.com

Foothills Optimist ClubFirst and third Wednesdays, noonMacayo’s Restaurant, 7360 N. Oracle RoadInfo and RSVP: (520) 744-5927

Foothills Rotary ClubEvery Friday, noonMetropolitan Grill, 7892 N. Oracle RoadRSVP: Eric Miller, (520) 979-1696

Foothills Club of TucsonSecond Friday, 12:30 p.m. McMahon’s Prime Steakhouse2959 N. Swan RoadRSVP: Leslie Hargrove [email protected]


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) 591-5500Cost: $15

Lions Club – Tucson BreakfastEvery Wednesday, 7 to 8 a.m.Sheraton Hotel, 5151 E. Grant RoadInformation: [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 month, 5:30 to 7:30 p.m.Locations varyInformation: www.maranachamber.com

Metropolitan Tucson Convention & Visitors BureauFirst Tuesday Monthly Luncheon, 11:45 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 Tuesdays, 10:30 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) 300-1056Cost: Free to members and fi rst timers

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

Networking Club in Northwest TucsonAli Lassen’s leads clubFirst Wednesday, noon to 1 p.m. Sullivan’s Steak House, 1785 E. River RoadRSVP: Johnna Fox (866) 551-3720

Networking Entrepreneurs of Tucson

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

Networking breakfast, First and third Wednesday, 7 to 8:30 a.m.Hometown Buffet, 5101 N. Oracle RoadInformation: (520) 240-4552

Northern Pima County Chamber of Commerce Monthly Membership BreakfastFourth Thursday of the month, 7 to 8:30 a.m.El Charro Café, 7725 N. Oracle Roadhttp://the-chamber.com

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

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

Oro Valley Business Club Monthly LuncheonFirst Thursday of each month.Carrabbas Italian Grill, 7635 N. Oracle Rd.Information: www.scoretucson.org, (520) 670-5008Cost: $15 members and non-members

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

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

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

Project Management Institute (PMI) Tucson ChapterSecond Tuesday of the month, 5:30 to 7:30 p.m.Hotel Arizona, 181 W. BroadwayInformation: www.pmi-tucson.org or [email protected]: $25 members, $30 nonmembers

Roadrunner Civitan Club of Civitan InternationalFirst and third Wednesdays, noon to 1 p.m.Lodge on the Desert, 306 N. Alvernon Way

RSVP: (520) 207-0804Cost $15

Rotary Club of TucsonEvery Wednesday NoonDoubletree Reid Park Hotel, 445 S. AlvernonRSVP: Mary Laughbaum(520) 623-2281www.tucsonrotary.org

Rotary Club of Tucson SunriseThursdays, 7 to 8:10 a.m. Arizona Inn, 2200 E. Elm StreetInformation: [email protected]

Rotary Club of Tucson SunsetTuesdays, 6 to 7:30 p.m.El Parador Restaurant, 2744 E. BroadwayInformation: (520) 349-4701

SAAEMA Monthly ProgramThird Tuesday, 11:30 a.m. to 1 p.m.Viscount Suites Hotel, 4855 E. Broadway Information: www.saaema.org RSVP: [email protected]: $20 members, $30 nonmembers

Saguaro Business ClubBusiness leads meetingEvery Thursday, 7 to 8 a.m.Mimi’s Café, 120 S. Wilmot RoadRSVP: (520) 891-5430

Saguaro Rotary ClubEvery Tuesday, 12:10 to 1:15 p.m.The Manning House, 450 W. Paseo RedondoInformation: Fred Narcaroti (520) 628-7648

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

SCORESouthern Arizona free business counselingEvery Tuesday, Wednesday and Thursday 9 a.m. to 1 p.m.SCORE Main Offi ce, 330 N. Commerce Park LoopInfo: (520) 670-5008

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

SCORESouthern Arizona free business counselingEvery Monday, 10 a.m. to 1 p.m.Nanini Branch Library, 7300 N. Shannon Road

Info: (520) 791-4626

SCORESouthern Arizona free business counselingEvery third Thursday, 9 a.m. to 1 p.m.Joel D. Valdez Main Library101 N. Stone Ave.First come-fi rst served

SCORESouthern Arizona free business counselingFirst and third Tuesday9 a.m. to 1 p.m.ASBA4811 E. Grant Road, Suite 261Call ASBA at (520) 327-0222 to schedule

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

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

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

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

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

Southern Arizona Chapter of Enrolled AgentsThird Tuesday 11:30 a.m.Knights of Columbus Hall601 S. Tucson BoulevardInfo: (520) 751-8986, www.aztaxpros.org/sacea

Southern Arizona Architects & Engineers Marketing AssociationThird Tuesday11:30 a.m. to 1 p.m.Viscount Suite Hotel4855 E. BroadwayRSVP: James Patrick, [email protected]: $20 members / $30 Nonmembers


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GET ON THE LISTNext up: Economicdevelopment organizations

With 2012 now underway, we’re beginning to collect data for the 2013 edition of Th e Book of Lists. Th e upcoming categories that will be published in Inside Tucson Business are:

• Jan. 13: Economic development organizations• Jan. 20: Advertising agencies, Public re-

lations fi rms, Graphic design fi rms• Feb. 3: Paid subscription newspapers,

Free newspapers, Magazines• Feb. 10: Commercial real estate brokers,

Commercial building contractors, Commer-cial real estate managers

If your company is in one of these catego-ries, now is the time to update your profi le. Go to InsideTucsonBusiness.com and click the Book of Lists tab. New and unlisted businesses can create a profi le by following the directions.

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

MANUFACTURINGRaytheon lands $69Mmissile contract

Raytheon Missile Systems has received a $69 million missile order from the Pentagon.

Th e contract calls for the U.S. Navy and Air Force to receive 115 air-to-air AIM-9X Block II missiles from Raytheon. Th e Air Force will get 66 of the missiles; the Navy, 49.

According to the U.S. Defense Depart-ment announcement, 41 percent of the work on the contract will be done in Tucson, with the rest to be performed at Raytheon loca-tions in Massachusetts, California, Con-necticut and Ontario, Canada.

BIOTECHNOLOGY Artificial heart sales up again

Tucson-based artifi cial heart manufac-turer SynCardia Systems, Inc., announced that it nearly doubled sales in 2011 for the second straight year.

Th e sales fi gures represent a four-fold in-crease since 2009.

Th ere are currently 50 SynCardia Certi-fi ed Centers worldwide with an additional 39 hospitals in the process of completing the company’s certifi cation process.

SynCardia recently expanded its sales and clinical support staff , hiring four re-gional sales managers and four additional clinical support specialists.

In November, the company set up shop in Germany to meet growing demand in Eu-rope.

RETAILBashas’ deal bringsit back to ‘normal’

Bashas’ says it has refi nanced its $185 million in secured debt with a new lend-ing group so that it can restructure the debt faster than originally planned.

Th e $95 million term loan facility, which matures in 2015, is part of a larger re-fi -nancing eff ort by the company, which also includes a new $75 million senior secured asset-based credit facility that matures in December 2015.

Th e Chandler-based grocer said the re-fi nancing allows it to operate under more normal business circumstances with great-er fl exibility while giving it fi nancial security and stability. Th e company has been oper-ating solely on its own cash since emerging from Chapter 11 bankruptcy protection in August 2010.

Under the refi nancing, Bashas’ said it has repaid its original secured lenders and will continue to make scheduled payments to its unsecured creditors, which are mostly vendors.

“We are grateful to our vendors for re-turning our company back to regular pur-chase terms much faster than we antici-pated,” said Edward Basha, vice president of retail operations. “While we continue to operate in a challenging recession, we re-main true to our commitment to become a stronger company. We’ve come a long way, and this refi nancing gets us one step closer to repositioning our company in a strong fi -nancial position.”

Th e new lending partners are Wells Far-go Capital Finance, Tennenbaum Capital Partners, GB Merhcant Partners and an af-fi liate of Stone Tower Capital. Bashas’ said it will operate with a revolving line of credit from Wells Fargo and a four-year term loan arranged by GA Capital.

In addition to its namesake Bashas’ chain, the company operates Food City and AJ’s Fine Foods stores.

No Arizona stores onSears’ closing list

Sears Holdings, which announced plans to close up to 120 “underperforming” Sears and Kmart stores, didn’t include any stores in Arizona on its initial list of 80 closures planned for this year.

Th e company has Sears stores in Tucson at Park Place and Tucson malls and one at the Mall at Sierra Vista. It was one Kmart store in Tucson, at 7055 E. Broadway.

Home Depot to altersupply operations

In a move to cut costs and improve ef-fi ciency, the Home Depot is changing its distribution operations in Arizona and will close a center it has in west Phoenix. Th e closure will eliminate 144 jobs.

Th e distribution center was operated by UTI, an international logistics, distribution and freight forwarding company, under contract to Home Depot. It’s expected to be closed by July.

As part of the change, Home Depot is shifting will move its major Arizona distri-bution center to a company-owned facility in Mira Loma, Calif. It will also maintain a 465,000 square-foot “rapid deployment center” in Tolleson.

FINANCIAL FDIC ends 2011 withbank closure in Ariz.

Th e Federal Deposit Insurance Corp. fi n-ished 2011 with closure of Western National Bank, a one-bank operation in Phoenix. It was the third Arizona bank to fail this year and the 12th to be closed since the econom-

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By Garry Duff yfor Inside Tucson Business

Arizona’s gasoline tax has stood at 18 cents per gallon for 21 years. Factor in an average rate of infl ation of 2.67 percent over those years, and that 18 cents is now worth what a dime was in 1990. Or, looking at it another way, if the rate of infl ation had been kept up, that 18 cents tax would be 31 cents today.

Either way, money from the Highway Users Revenue Fund (HURF) coming into seven jurisdictions in the Pima Association of Governments is buying less these days.

PAG, as it has done for the past several years, is proposing to raise the gas tax by 5 cents per gallon to 23 cents per gallon with an annual infl ationary adjustment over the next fi ve years. Th e request was included PAG’s annual policy submittal to the state Legislature, which begins its 2012 session next week.

A new study released by the Institute on Taxation and Economic Policy, based in Washington, D.C., found that 36 states, in-cluding Arizona, have fi xed tax rates that do not account for infl ation and that the buy-ing power of the gas tax in those states has fallen 27 percent since 2000.

“Th e ongoing decline of the gas tax is troubling in large part because of the tax’s enormous importance to the effi cient and safe operation of state transportation sys-tems,” according to the report. “Gas and die-sel tax rates would have to rise over 6 cents per gallon, on average, to return them to the level of purchasing power they had the last time they were raised.”

Adding to the declining buying power of the gasoline tax, lawmakers have taken HURF funds intended for counties, cities and towns and used the money to help bal-ance the state’s budget.

In a memo to supervisors, Pima County Administrator Chuck Huckelberry says more than $11.1 million of HURF money has “been diverted from Pima County to fund state agencies” over the past four years.

Pima County also gets hit because the state HURF distribution formula favors mu-nicipalities over unincorporated areas of counties. Cities and towns get 23 percent of HURF dollars with a 3 percent bump on that going to cities with populations over 300,000. Counties get 19 percent of the over-all annual distribution to fund projects in unincorporated areas. Th e rest goes to the Arizona Department of Transportation.

Maricopa County, with a population of more than 3.8 million in the 2010 Census — 60 percent of the state’s total poulation of 6.4 million — has 25 municipalities that take in all but 6 percent of the population. Pima County, with a population of 980,263 in the latest Census, has fi ve municipalities with 36 percent of people living outside of any of them.

Besides the state gas tax, there is a fed-

eral tax of 18.4 cents per gallon. Th at fi gure hasn’t changed since 1993. Th e federal dol-lars are distributed to state and local gov-ernments and generally can be employed in a wider use range than state or local funds.

Garry Duff y, a former reporter for the

Tucson Citizen, is a consultant to the Pima

Association of Government’s Regional Trans-

portation Authority.

BRIEFS

After 21 years, PAG says it’s time to raise the gas tax

ic downturn started in late 2007.Only one of those closures has included

a bank with operations in the Tucson when the former First National Bank of Arizona was closed in July 2008 and most of the as-sets turned over to Mutual of Omaha Bank.

Western National Bank was closed on Dec. 16 and its desposits assumed by Seattle-based Washington Federal Sav-ings, which already has numerous offi ces throughout Arizona.

According to publicly-fi led data as of Sept. 30, 93 percent of Western National Bank’s $28.4 million of non-performing loans were in commercial real estate.

HEALTH CAREUA Cancer Center partners for clinic in Phoenix

Th e University of Arizona Cancer Center and Phoenix’s St. Joseph’s Hospital and Med-ical Center are partnering for the construc-tion of a $135 million, 250-000 square-foot outpatient cancer care facility in Phoenix.

Th e Arizona Board of Regents gave its blessing to the partnership, specifying that the projected be paid for through gifts, con-tributions from other government sources and new debt. Dr. Tom Brown, chief opper-ating offi cer of the UA Cancer Center and professor of medicine at UA, said he expects $50 miillion to be raised through philan-thropy. Also, the City of Phoenix has already committed $14 million.

Th e UA and the hospital say they will recruit up to 30 cancer specialists and re-searchers to support clinical trials. Th e facility will be built as part of the Phoenix Biomedical Campus. St. Joseph’s in Phoenix is owned Catholic Healthcare West, based in San Francisco. It is not directly affi liated with Tucson’s St. Joseph’s Hospital, which is part of the Carondelet Health Network.

EDUCATION/RESEARCHUA’s Dr. Ghisan lands diabetes research grant

Th e National Institue of Diabetes and Di-gestive and Kidney Disorders has awarded a $1.65 million grant to Dr. Fayez Ghishan at the University of Arizona College of Medi-cine, to study the NHE8 protein. Ghishan, along with co-investigator Hua Xu, Ph.D., associate professor of pediatrics at the UA Steele Chidren’s Research Center, previ-ously discovered that NHE8, a sodium/hy-drogrn exchanger, does more than simply transport sodium through the gastrointes-tinal tract.

Th e study will focus on three areas: un-derstanding how NHE8 impacts mice at various developmental stages; character-izing the role of NHE8 in the gastrointesti-nal tract and how it responds to epithelial injury; and uncovering the role of NHE8 in mice sterility.

“Our research could lead us to discover that NHE8 plays a pivotal role in male infer-

tility and other gastrointestinal problems, which may ultimately lead to the develop-ment of novel treatments,” said Ghishan. Th e study is titled, “Regulation of a Novel Intestinal NHE Isoform (NHE8).”

Ghishan is head of the UA Department of Pediatrics, director of the Steele Children’s Center, and physician-in-chief of Th e Uni-versity of Arizona Medical Center – Dia-mond Children’s.

NONPROFITSCox donates $87K to local groups

Cox Communications charity organiza-tion Cox Charities announced that it do-nated more than $87,000 to area non-profi t organizations.

Th rough programs like its Power of One campaign, in which Cox customers added $1 to their bill payment for charities, Cox employees and corporate partners donated to 19 area charities.

Th e Southern Arizona area organizations that were awarded grant funds this year include:

Arizona Th eatre Company: $5,000• Boys & Girls Club of Sierra Vista: • $6,000Casa de los Niños: $5,000• Cochise Robotics Association: $6,500• Educational Enrichment Foundation: • $5,000Fractured Atlas: $5,000• Friends of Saguaro National Park: • $5,000

Gabriel’s Angels: $2,500• Jobs for Arizona’s Graduates: $3,000• La Paloma Family Services: $3,500• Our Family Services: $2,000• Pan Left Productions: $3,000• Planetary Science Institute: $2,500• Reid Park Zoo: $10,000• Southern Arizona Children’s Advocacy • Center: $5,000Th e Animal League of Green Valley: • $2,500Tucson Urban League: $4,000• Wright Flight: $4,000• Youth On Th eir Own: $8,000. •

Marketing association receives national award

Th e Tucson chapter of the American Marketing Association (TAMA) has received a 2010-11 Special Merit Award from the or-ganization’s international headquarters.

Th e AMA’s annual Chapter Excellence Awards program highlights exceptional per-formance among the organization’s 78 pro-fessional chapters across the U.S. and Can-ada. Th e Tucson Chapter was awarded with Programming Special Merit for outstanding performance in that area.


With FIAs, you automatically capture your gains each year and they are locked in without having to make a selling decision. Once you have these gains, they cannot be reduced by the volatility of the

stock market.Th e FIA enables you to be passively

linked to the Dow, the S&P, bonds and more without taking any risk.

Safety, growth, guarantees, lifetime income. All benefi ts of Fixed Indexed Annuities.

Th e securities industry also off ers variable annuities...not to be confused with fi xed annuities. Variable annuities have very high fees for mortality and expenses, administration, fund fees, rider fees...all, very often, on top of broker management fees. Th ese fees can run from 2 percent to 4 percent or more annually. Yet, you can still lose money because a variable annuity is a market-linked product subject to market volatility.

Th e bottom line is, the nest you put your retirement egg in could be precariously perched above a deep ravine on weak branches or, it can be secure and safe from harm.

• Are you taking risk with your retire-ment nest egg and paying fees without guarantees?

• Does your advisor have a solid plan in place to protect your nest egg when the market crashes again?

If not, you may want to become familiar with Fixed Indexed Annuities and insure your nest egg against loss.

It’s your money. You’ve worked for it all your life. Th e more you know about your options, the better your chances of succeeding with a retirement plan for life.

Contact Susan L. Moore Vault, president

of Moore Financial Strategies, at susan@

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

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

Saturdays on KNST 97.1-FM/790-AM.

FINANCEYOUR MONEY

Is your 401(k) ready tobe a real retirement plan?

In 2011, 60 percent of American households with members nearing retirement age have 401(k)-type retirement plans according to government data. Th e operative word there is “retirement” plans.

Yet,• 11,722.98 was the Dow Jones Industrial

Average close on Jan 14, 2000.• 11,866.39 was the Dow Jones Industrial

Average close on Dec. 16, 2011.So how much did your “retirement”

plan grow over the last 11 years?We have experienced extreme market

volatility and I hear people say, “I’m almost back to where I was before 2008.” But it is important to understand how hard it is to overcome the losses and the volatility. If you lose 30 percent, you have to make 42 percent just to get back to where you started. If you lose 50 percent, you have to make 100 percent to get back to where you started.

With a Fixed Indexed Annuity (FIA), you only take a portion of the “up” in the market but you never have any downs. Th e history of FIAs shows that modest gains that never experience a loss will outper-form a volatile market over time.

On Aug. 8, 2011, investors lost $1 trillion dollars in one day as reported by CNN Money. Th at represented the largest drop since Dec. 1, 2008, when the Dow fell over 9 percent. Good, diversifi ed portfolios did not avoid the carnage that day nor did diversifi cation boost retirement plans in 2008.

With the market, buying and selling decisions must be made. When do you sell? Who wants to sell a winner while it’s winning? But, if you wait too long, it may become a loser. Who knows? When you are in the market, how do you determine how much you can withdraw annually in retirement and still have enough money to last for your lifetime? Th e old 4 percent rule does not apply according to a study by the fi nancial market research fi rm Dalbar. Th ere are no guarantees. But there are good alternatives.

FIAs take out all the guesswork. With a lifetime income rider, you can determine exactly how much money you will have on a monthly basis for the rest of your life. Even if you run out of money, you will never run out of income. Th ese riders cost less than 1 percent to guarantee 5 -to-7 percent growth and lifetime income.

SUSAN L. MOORE VAULT

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

Company Name Symbol Jan. 4 Dec. 29 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG 0.07 0.09 -0.02 0.04 0.97CDEX Inc CEXI.OB 0.03 0.03 0.00 0.02 0.06Providence Service Corp PRSC 14.27 13.92 0.35 8.35 18.00UniSource Energy Corp (Tucson Electric Power) UNS 36.61 37.45 -0.84 32.96 39.25

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 9.45 8.52 0.93 8.45 18.47AMR Corp (American Airlines) AMR 0.24 0.54 -0.30 0.20 8.89Augusta Resource Corp (Rosemont Mine) AZC 3.26 3.00 0.26 2.65 6.29Bank Of America Corp BAC 5.81 5.29 0.52 4.92 15.31Bank of Montreal (M&I Bank) BMO 56.70 54.05 2.65 51.83 66.64BBVA Compass BBV 8.55 8.26 0.29 7.02 13.01Belo Corp (KMSB 11, KTTU 18) BLC 6.61 6.10 0.51 4.36 9.27Berkshire Hathaway (Geico, Long Cos) BRK-B* 76.80 76.52 0.28 65.35 87.65Best Buy Co Inc BBY 23.23 23.00 0.23 21.79 36.33BOK Financial Corp (Bank of Arizona) BOKF 55.55 54.83 0.72 43.77 56.58Bombardier Inc* (Bombardier Aerospace) BBDB 4.19 3.90 0.29 3.30 7.29CB Richard Ellis Group CBG 16.05 14.75 1.30 12.30 29.88Citigroup Inc C 28.17 26.13 2.04 21.40 51.50Comcast Corp CMCSA 24.73 23.46 1.27 19.19 27.16Community Health Sys (Northwest Med Cntrs) CYH 17.15 16.74 0.41 14.61 42.50Computer Sciences Corp CSC 24.49 23.76 0.73 22.80 56.61Convergys Corp CVG 12.58 12.49 0.09 8.49 15.00Costco Wholesale Corp COST 84.07 84.18 -0.11 69.54 88.68CenturyLink (Qwest Communications) CTL 37.09 36.67 0.42 31.16 46.70Cvs/Caremark (CVS pharmacy) CVS 41.80 41.04 0.76 31.30 41.72Delta Air Lines DAL 8.01 8.12 -0.11 6.41 13.21Dillard Department Stores DDS 43.03 45.38 -2.35 37.42 61.08Dover Corp (Sargent Controls & Aerospace) DOV 58.17 57.61 0.56 43.64 70.15DR Horton Inc DHI 13.12 12.20 0.92 8.03 13.50Freeport-McMoRan (Phelps Dodge) FCX 39.83 36.31 3.52 28.85 61.35Granite Construction Inc GVA 24.45 22.82 1.63 16.92 29.68Home Depot Inc HD 42.74 41.53 1.21 28.13 42.90Honeywell Intl Inc HON 55.53 53.98 1.55 41.22 62.28IBM IBM 185.54 183.99 1.55 146.73 194.90Iron Mountain IRM 31.15 30.69 0.46 24.28 35.79Intuit Inc INTU 52.30 52.41 -0.11 39.87 56.46Journal Communications (KGUN 9, KMXZ) JRN 4.60 4.41 0.19 2.69 6.18JP Morgan Chase & Co JPM 34.95 32.65 2.30 27.85 48.36Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 26.89 27.18 -0.29 25.73 38.40KB Home KBH 6.77 6.34 0.43 5.02 16.11Kohls Corp KSS 47.36 50.09 -2.73 42.14 57.39Kroger Co (Fry's Food Stores) KR 24.27 24.33 -0.06 21.09 25.85Lee Enterprises (Arizona Daily Star) LEE 0.73 0.69 0.04 0.49 3.47Lennar Corporation LEN 20.21 18.98 1.23 12.14 21.54Lowe's Cos (Lowe's Home Improvement) LOW 26.47 25.06 1.41 18.07 27.45Loews Corp (Ventana Canyon Resort) L 38.00 37.55 0.45 32.90 45.31Macerich Co (Westcor, La Encantada) MAC 50.30 50.39 -0.09 38.64 56.50Macy's Inc M 32.65 32.67 -0.02 21.69 33.26Marriott Intl Inc MAR 30.47 29.15 1.32 25.49 42.78Meritage Homes Corp MTH 23.71 22.36 1.35 13.68 27.42Northern Trust Corp NTRS 40.61 39.46 1.15 33.20 56.86Northrop Grumman Corp NOC 58.63 58.13 0.50 49.20 72.50Penney, J.C. JCP 34.91 35.34 -0.43 23.44 41.00Pulte Homes Inc (Pulte, Del Webb) PHM 6.54 5.95 0.59 3.29 8.69Raytheon Co (Raytheon Missile Systems) RTN 48.59 48.63 -0.04 38.35 53.12Roche Holdings AG (Ventana Medical Systems) RHHBY 43.17 42.32 0.85 34.02 45.65Safeway Inc SWY 21.05 21.14 -0.09 15.93 25.43Sanofi -Aventis SA SNY 36.50 35.69 0.81 30.98 40.75Sears Holdings (Sears, Kmart, Customer Care) SHLD 30.80 33.33 -2.53 31.25 94.79SkyWest Inc SKYW 12.98 12.53 0.45 10.47 17.28Southwest Airlines Co LUV 8.60 8.40 0.20 7.15 13.59Southwest Gas Corp SWX 42.18 42.84 -0.66 32.12 43.22Stantec Inc STN 27.78 26.20 1.58 20.96 31.89Target Corp TGT 50.00 51.71 -1.71 45.28 59.78TeleTech Holdings Inc TTEC 15.98 16.02 -0.04 14.10 23.46Texas Instruments Inc TXN 29.57 29.07 0.50 24.34 36.71Time Warner Inc (AOL) TWX 36.49 35.90 0.59 27.62 38.62Ual Corp (United Airlines) UAUA 18.52 18.95 -0.43 15.51 27.72Union Pacifi c Corp UNP 108.78 104.47 4.31 77.73 109.10Apollo Group Inc (University of Phoenix) APOL 54.11 53.26 0.85 34.43 54.58US Airways Group Inc LCC 5.03 5.19 -0.16 3.96 11.56US Bancorp (US Bank) USB 27.57 26.88 0.69 20.10 28.94Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 59.71 59.73 -0.02 48.31 61.06Walgreen Co WAG 32.83 33.28 -0.45 30.34 47.11Wells Fargo & Co WFC 28.56 27.11 1.45 22.58 34.25Western Alliance Bancorp (Alliance Bank) WAL 6.67 6.15 0.52 4.44 8.45Zions Bancorp (National Bank of Arizona) ZION 17.14 16.09 1.05 25.60Data Source: Dow Jones Market Watch

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


INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

For residential foreclosures in Pima County, it’s cliché time: If you’re going through hell, keep going. Th e worst is over. Th ere is no education like adversity. Every path has a puddle.

“Foreclosures have turned the corner, out of the shadows. Th ere’s real light at the end of the tunnel,” said housing analyst John

Strobeck, owner of Bright Future Business Consultants. “Now the question is, how long is the tunnel?”

Clearly, the Southern Arizona’s foreclo-sure crisis is shrinking. Since Notices of Trustees Sales peaked in 2009 at 12,184, the numbers have steadily declined (see table). Year-end data from the Pima County Re-corder’s offi ce show that notices ended 2011 at 9,433, down 19 percent from 2010.

Th at’s 2,230 fewer homes in the foreclo-

Home foreclosure notices drop 19% in 2011

THE PULSE: TUCSON REAL ESTATE

12/26/2011 12/19/2011

Median Price $120,000 $128,000Active Listings 5,512 5,549New Listings 192 230Pending Sales 254 266Homes Closed 179 175Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 4.00% 4.25%APR 4.00% 4.25%APR 6.18% 6.88% 4.00%

15 YEAR 3.50% 3.81%APR 3.50% 3.81% APR 5.94% 6.75% 3.38%

3/1 ARM 3.00% 3.38%APR 3.00% 3.38% 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) Peoples Mortgage Company, 1610 E. River Road, Suite-118 Tucson, Arizona 85718 • 520-324-000MB #0115327. Rates are subject to change without notice based upon market conditions.

1/3/2012

Pima County Recorder’s Offi ce data

Notices of Trustees Sales Pima County Recorder Foreclosure

2006 2007 2008 2009 2010 2011JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTOTALMonthly Avg.

223192224196204246216267235248299292

2,842237

346276305300396377419503394483540475

4,814401

699598661700720742721814782921675923

8,956746

8821,0161,1541,093

9911,0021,0631,1301,008

948859

1,03812,184

1,015

863982

1,089985890862

1,1111,0671,0901,019

829876

11,663972

975762948721748693666917797816754636

9,433786

sure pipeline during 2011. A trustees’ notice is the fi rst step in the foreclosure process. It notifi es owners that their property is in de-fault and scheduled to be sold at public auc-tion.

While the housing market grinds through its slow recovery, the key factor remains the sales pace of distressed inventory. For the past fi ve years, foreclosures “have been driving the entire market. Th e biggest event in 2012 is the end of resets for the three and fi ve-year loans that have caused so much of the problem,” explained Strobeck. “Th e re-sets end in the third quarter and after that, the resets are almost zero.”

Technically, that should result in fewer foreclosures this year and going forward.

Sales of foreclosed homes in Pima Coun-ty were 6,956 in 2011. Th is was an increase of 163 homes over 2010, or 2.4 percent, ac-cording to the Recorder’s data. Th e monthly average ended the year at 580 sales, faster than the 566 monthly sales pace in 2010.

Because of the housing crash, Strobeck estimated that as many as 15,000 local peo-ple who lost their homes are so distraught, they may never buy a home again.

“It ruined them. Th ey lost their house and credit. Th ey will no longer be willing to invest 30 years of payments into a mort-gage,” he said. “Th e banks have tightened down, not just until this crisis passes, but probably for the long term. Financing won’t be easy. Th e market will continue changing for a few more years, watching how the builders react will be interesting.”

Medical plaza defaultSouthwest Professional Plaza, a medical

offi ce complex near Tucson Medical Center, has fallen into default and is to be sold at public auction in February. Th ree separate buildings comprise the plaza at 2122, 2222 and 2224 N. Craycroft Road.

Th e owner is William and Terri Akers LLC of San Jose, Calif., with a $3.35 million original principal balance, according to public records. Th e complex, built in 1970, totals about 14,600 square feet.

Th e benefi ciary is U.S. Bank National As-sociation, in care of C-III Asset Management LLC of Irving, Texas. Th e trustee’s sale is be-ing handled by Assured Lender Services of Tustin, Calif. Th e auction is 11:30 a.m., Feb. 29 at Pima County Courts Building, 110 W. Congress.

Rothschild and Pace at economic forum

Acting on the awareness that private sec-tor job creation will drive Tucson’s econom-ic recovery, offi cials from the City of Tucson, Rosemont Copper and Tucson Economic Regional Opportunities will headline a spe-cial economic development forum on Janu-ary 24.

Tucson Mayor Jonathan Rothschild will be the keynote speaker at the annual BOMA/IREM Economic Forecast Breakfast. He will be joined by Rod Pace, CEO of Rosemont Copper, and Michael Guymon, vice presi-dent of regional development for TREO.

BOMA is the Building Owners and Man-agers Association/Greater Tucson. IREM is the Institute of Real Estate Management/Southern Arizona.

Th e event also features a commercial real estate market update. Speakers and their topics include: Brandon Rogers of Pi-cor (industrial); Brian Barker of Barker Mor-risey (development); Scott Soelter of Grubb & Ellis (retail); Art Wadlund of Hendricks & Associates (multi-family); Ike Isaacson of CBRE (offi ce); and Jeannie Nguyen of Na-tional Bank of Arizona (fi nance).

Consultant Martin Krawitz will do a se-quel to last year’s wildly popular “Anatomy of a Deal” with his “Th e Risqué Anatomy of a Deal.”

Th e forecast is at the Sheraton Tucson Hotel, 5151 E. Grant Road from 8 a.m. until noon. To register, go online at www.bomagt.org or call (520) 299-4956.

Sales and leases • 1100 E. Broadway LLC purchased two

buildings at 1100 and 1120 E. Broadway Blvd. for $400,000 from the Th omas W. Lev-itt Estate, represented by Brenna Lacey of Volk Company Commercial Real Estate. Ron Zimmerman of Grubb & Ellis repre-sented the buyer.

• Gina and Th omas J. Carver purchased a 3,700-square-foot building and parking lot at 1132-1136 E. Broadway Blvd. for $260,000 from the Th omas W. Levitt Estate, repre-sented by Brenna Lacey of Volk Company Commercial Real Estate. Tony Reed of Long Realty represented the buyer.

• Broadway Steakburgers LLC leased a 3,309 square foot building at 7120 E. Broad-way Blvd. from Circle Plaza Associates LLC/Circle Plaza Maizlish LLC as T.I.C. LLC, rep-resented by Andy Seleznov of Larsen Baker. Th e tenant was represented by David Ham-mack and Rick Borane of Volk Company Commercial Real Estate.

• Recon Environmental Inc. leased 2,667 square feet at 2033 E. Grant Road from Parsons, Dooley & Stephan PC, represent-ed by Ian Stuart of CBRE. Th e tenant was represented by Bruce Suppes of CBRE.

• Arizona Communication Expertsleased 2,600 square feet at 4575 S. Palo Verde, Suites 319 and 321, from Presson Equity Partners. Rob Glaser, Picor Com-mercial Real Estate Services, handled the transaction.

E-mail news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.


Judging by the way many of us bid good-bye to 2011, we’re expecting this year will be better. Hopefully, it’s not one of those resigned expectations that last year was so bad that 2012 couldn’t possibly be any worse.

How do we jumpstart the positive thoughts, attitudes and expectations?

As has become the tradition around here at Inside Tucson Business, we’re kicking off the new year with a call for nominations for our annual recogni-tion of Up & Comers. From your nominations, nine people will be selected. Each will be profi led in a special section in the April 13 issue of Inside Tucson Business and honored at a reception.

Helping to select this year’s honorees will be some of the 81 people who’ve been Up & Comers in previous years.

Th is is the 10th year our publication has set out to honor Up & Comers. Dictionary-type defi nitions for up and comers say things like “promising, continued or future success” and “enterprising” and “showing signs of advancement and ambitious development.”

In some ways, it’s diffi cult to pinpoint exactly what makes an Up & Comer but here are some of the basics:

• A person in their 20s, 30s or early 40s.• Committed to making a diff erence, whether it’s their

chosen career paths, overall leadership, in some form of community service, mentoring or doing good in some other way. It really is that nebulous.

• It doesn’t hurt if you feel the person you’re nominating hasn’t received the recognition she or he deserves. In a way, that’s the point.

• On the other hand, sometimes CEOs and other leaders do things without seeking notoriety. I think we should take notice of that as well.

In short, these are people with the enthusiasm, creativity, dedication, courage and leadership skills to step up to the plate.

Nominations are being taken online at www.InsideTucson-Business.com — look for the Up & Comers icon. Click on it to fi nd the form. We’ve tried to make the form easy to fi ll out while still giving the judges enough information to make a selection.

But as I say every year, please don’t let the form intimidate you. Answer as many questions as possible but don’t fret about those you can’t answer. Th ere’s also nothing wrong with encouraging someone to fi ll out a nominating form for themselves. I get it, some might be reluctant to do that, but maybe a collaborative eff ort will work.

Our deadline for Up & Comer submissions is 5 p.m. Feb. 22.I hope you’ll look around your circle of colleagues and

friends and nominate some deserving person. Especially if you’re still feeling down about things that happened (or didn’t happen) in 2011. Th is could be just the prescription to get you and the business community in a positive frame of mind for 2012.

Contact David Hatfi eld at dhatfi [email protected]

or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Up & Comers willstart a better 2012

EDITORIAL

Jan. 8, 2011, does not defi ne TucsonSome dark occurrences have happened to Tucson in

recent generations — serial Charles Schmid known as the Pied Piper of Tucson in the early 1960s and the Pioneer Hotel fi re in 1970, among them — and this weekend our city will be the focus of national media attention commemorat-ing the shooting on Jan. 8, 2011.

Nothing will compare to the continuing anguish that will be felt by the families and friends of Christina-Taylor Green, 9; retired secretary Dorothy “Dot” Morris, 76; U.S. District Chief Judge John Roll, 63; homemaker Phyllis Schneck, 79; retired construction worker Dorwin Stoddard, 76; and Gabe Zimmerman, 30, the community outreach director for U.S. Rep. Gabrielle Giff ords, whose “Congress on Your Corner” constituent event was the scene of the shooting.

Th e weekend will undoubtedly bring back haunting memories for the 13 people who were wounded even as Giff ords herself continues rehabilitation and what has already been a truly remarkable recovery.

Th ere were also the heroes of the day: Daniel Hernandez, who came to the aid of Giff ords doing what he could to stem the bleeding from her head, and Patricia Maisch, Bill Badger, Roger Sulzgeber and Joseph Zamudio who helped subdue the shooter and probably prevent further carnage. Th ere were numerous others, too, including the remarkable work of the fi rst responders and the health professionals at University Medical Center.

Numerous commemoration events and activities are planned throughout this weekend and we expect many Tucsonans will participate in these and events, including our regular church services. Th ere is strength in a community uniting through prayer and other participatory events.

Commemorating tragedies can be such a delicate matter. As a rule we’d

prefer commemorative celebrations of good things. On Jan. 16, for instance, this nation will honor the work of civil rights leader Martin Luther King Jr. Th e holiday on the third Monday in January each year was selected because it’s near his birthday of Jan. 15. While few people who were living at the time will forget the tragedy of his assassination in Memphis, Tenn., on April 4, 1968, the holiday this month provides for a celebration of the work King did in his life.

In business there are people who specialize in what’s known as crisis communications. When a tragic event takes place, news media — especially in these days of 24-hour cable TV news channels desperate to fi ll airtime — can run with storylines over which the people most involved have no control. Testimony to that was the erroneous reporting of Giff ords death by such otherwise respected national news organizations including NPR, Reuters, CNN, Fox News and on the websites of the New York Times and ABC News.

Our point is that we Tucsonans have no control over what the message to the world will be from this weekend’s reporting of the anniversary. In retrospect we can look back to what led to the shooting and work to recognize and react better to such things as mental health issues mindful of the needs for safety and freedom for the majority over any perceptions of political correctness.

But above all else, the events that took place on Jan. 8, 2011, do not defi ne Tucson or its people. We as community need to show that message cannot go out.

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OPINIONBUSINESS INK

Annual Wish List targets collaboration and jobs for 2012Every new year off ers hope for a better

tomorrow, so let’s jump straight into 2012.Successful business and political leaders

excel at solving problems. So in hopes of making Tucson a better community, I asked a few of them for their 2012 Business Wish List. Now in its third year, the list’s contributors had this to say:

“My 2012 wish is for more collaboration between the public and private sectors to support our existing employers and promote initiatives that create new high-wage, quality jobs in our community. For improved education and infrastructure systems, as well as an available skilled workforce to make Pima County more attractive.

“More support for clean industries (medical research, bioscience, technology, optics, geo-tourism, solar) while preserving the natural beauty so valued by residents. Finally, I wish the State Legislature would give back our highway funds so we can fi x our streets, but I’m not holding my breath.”— Pima County Administrator

Chuck Huckelberry

“My wish for Tucson is more jobs and economic development. One of the best incentives we can off er to bring and keep jobs here is a great city government: easy to navigate, consistent, responsive and problem-solving. My priorities are land use code reform, improvements in planning and

development services, using new technologies to make our city more effi cient, transpar-ent, collaborative and includes a fi rst-rate education system.

“We need regulations that protect neighbor-

hoods and the environment, but we can’t aff ord red tape that doesn’t make sense for anyone. What I want are quality jobs that are compatible with our community, our values and our desert environment.”— Tucson Mayor Jonathan Rothschild

“My wish is recognition of the importance of regionalism. Th e establishment and success of the RTA is due to the citizen leaders who put together the plan by putting aside parochial issues to solve our transportation problems. Th e result was voter approval, followed by the completion of more than 450 projects and more than 1,800 jobs to date. Th e focus on regional-ism is also refl ected in the RTA’s voting structure (one jurisdiction, one vote) which intentionally forces all jurisdictions to come to consensus and provide solutions that serve us all.”— Gary Hayes, Regional

Transportation Authority

“My wish is for 10,000 to 15,000 new jobs in 2012. Job growth will go a long way toward repairing the damage that the local economy suff ered during the Great Recession.”— Marshall Vest, University of Arizona

“Call me Pollyanna, but my wish is for more meaningful collaboration, optimism and drive for solutions. After three years in survival mode with a barrage of negativity, it’s time to look forward and have our actions support and create progress. The business community thrives when we set aside pet issues and focus more broadly on making Tuc-son the best place to live, work and play.”— Barbi Reuter, Picor Commercial Real

Estate Services

“We accept the need to diversify our economy and learn to compete with a diff erent value proposition. Th e future economy will no longer be based on our reaction to growth. We must build a new economy for future generations.”— Joe Snell, Tucson Regional

Economic Opportunities

“My wish is down to one thing, that the city and county do everything they can to make our city more attractive. It looks awful. It needs a facelift. Our street scenes look horrendous with weeds, too many signs and poor landscaping. Turn our community back to the Jewel of the Desert.”— Hank Amos, Tucson Realty & Trust

“I wish for smaller government, greater self-determination and the “old normal.” I wish everyone who wants a job could count on a regular paycheck and the self-dignity made possible by gainful employment. I wish that free enterprise could spin its economic magic without senseless regula-tion and delay. I hope that every young person will one day graduate into adult life with a solid educational foundation.”— Mike Varney, Tucson Metro Chamber

“MPA wishes for continuing dialogue between each local government and the private sector as we work to create equitable land use policies. Land use is a critical element of economic development so we wish local policies and attitudes refl ect this as we work to achieve balance between economic development, environmental sustainability and neighborhood preservation.”

— Amber Smith, Metropolitan Pima Alliance

“Th e number one issue is jobs.”— Pete Herder, Th e Herder Companies

Contact Roger Yohem at (520) 295-4254

or [email protected]. His Business Notebook

appears biweekly and weighs in on local

political, social and business issues.

ROGER YOHEM

SPEAKING OUT

UA is home to one of the nation’s three major poetry centersOne of the nation’s three major poetry

centers is located on the University of Arizona campus. The public can enjoy the varied volumes of poetry in the non-circulating library. There are also outstanding classes and programs available to anyone who wants to participate.

Tucson winter visitor Ruth Walgreen Stephan, who was a novelist, poet and editor, endowed a poetry library at the UA in 1960. Stephan and her mother, Myrtle Walgreen, also provided expansion funds and two buildings on Highland Avenue to house the center.

Stephan believed Tucsonans needed to read and appreciate poetry. She saw creative writing as an art form. Th e UA deserves credit for its support of her concept. Today there are 70,000 books, photos, recordings and broadsides at the Poetry Center, 1508 E. Helen St.

It is noteworthy that when the center opened, Arizonan Stewart Udall, who served as Secretary of the Interior in the John F. Kennedy administration, brought well-known poet Robert Frost to participate in the dedication. While Frost was in Tucson, Udall invited him to read his poetry at Kennedy’s inauguration.

Over the past 50 years the Poetry Center has

grown to national acclaim, and poets have come here from all over the world to read poems to appreciative audiences. Partici-pants have included three Nobel Prize winners and 50 Pulitzer Prize-win-ning poets.

Initially, the center’s shoestring budget meant the public barely knew of its existence. It wasn’t unheard of that the Poetry Center’s mail would end up at the UA’s “Poultry Center.”

The Highland Avenue property became a “casualty” of the Speedway widening. The Poetry Center moved to smaller quarters on Cherry Avenue. By 1996 the center’s success forced consideration of a capital campaign to build more space for the growing collection and programs.

Helen S. Schaefer agreed to head the capital drive. Th e private sector raised nearly $5 million while the UA provided $1.9 million and the land on Helen Street.

Les Wallach of Line and Space Architects designed the building after he had conducted a focus group of poets and architects to ascertain how architects could help poets.

The Helen S. Schaefer Poetry Center was dedicated in 2000. The new building allowed the poetry collection to be exhibited in one place, and it is now online. This has permitted program expansion and more varied presentations.

Cybele Knowles, events coordinator at the center, says the Poetry Center means different things to different people. Some come to the library just to read. Others join book clubs, discussion groups and creative writing workshops. There is also a UA prose series in which authors read their works. These events are often led by graduate students, visiting poets or local authors.

To enhance language development and foster communication, the center hosts children’s activities. Instructors incorporate

dance, music, and games to introduce young children to the wonders of poetry.

A new program called Family Days encourages families of all ages to participate in center activities one Saturday per month.

Th e Poetry Center introduced a statewide contest for high school students based on the corrido, a Mexican ballad form. Students are invited to submit their own original corridos. Poetry Center Director Gail Browne says the poetry reading series begun in 1963 is still the center’s mainstay; it establishes an appreciation of arts and culture, a center mission.

“Love Notes,” a production scheduled for Feb. 14-17, will feature a collaboration with the UA School of Dance and will include poetry, letters, music and dance.

Th e Poetry Center is a “warm and welcom-ing literary writing center and a hub for inquiry, discussion, and celebration.” Area residents of all ages are invited to browse the library and to participate in the numerous programs.

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

Les Wallach of Line and Space Architects

University of Arizona Poetry Center1508 E. Helen St., at Vine Avenuehttp://poetry.arizona.edu(520) 626-3765


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OPINIONGUEST OPINION

Setting the record straight on CAP water and the Rosemont mineI’ve attended all of the Forest Service

hearings to date about the proposed Rosemont Copper mine. Th ere has been no shortage of mentions about the importance and use of water.

No matter what side they are on, everyone has agreed that water is a critical issue but, depending on the speaker, Central Arizona Project (CAP) water is viewed either as a blessing or a curse.

Either way, it is still our best source of renewable water. And it is a well-protected source.

Th e CAP board, the Central Arizona Water Conservation District (CAWCD), has not taken a position on Rosemont Copper’s plan of operations, so I write this as an invidual board member.

Several of CAP’s strategic objectives will be furthered by the fact that one compo-nent of Rosemont’s water management and conservation plan includes importing water through a pipeline to bring and recharge CAP water in the upper Santa Cruz basin.

Th e terminus of the existing CAP canal is at Pima Mine Road and yet the aquifer upstream — in Sahuarita and Green Valley

— is being drawn down considerably by agricultural, residential and other pumping. Th e additional groundwater required for Rosemont would come from this same area.

CAP has two customers with water allocations south of the terminus and there is a potential groundwater savings facility, none of which can currently receive water because there are no pipes to carry it to them.

Some speakers have stated that this will be meaningless because there is limited excess CAP water. While excess water may not be as available as it once was, there defi nitely is water available.

Community Water Company and the Green Valley Water District have a com-bined allocation of about 5,000 acre-feet annually — this water is of the highest priority and wet water they cannot take now.

In addition, CAP must recharge water as

part of our obligations imposed by the Ground Water Replenishment District (CAGRD).

Currently the Pima Mine Road Recharge Center is CAP’s most southerly recharge location, unfortunately still a ways down-stream from the Sahuarita and Green Valley CAGRD members pumping.

Th e 2010 CAP strategic plan (available at www.cap-az.com) identifi es the following strategic issue for CAP.

Issue: Hydrological relationship between member pumping and CAGRD replenishment

Action Plan:• Investigate feasibility of developing

new recharge projects in identifi ed areas of excessive groundwater decline

• To extent feasible, replenish in areas of hydrologic impact of groundwater with-drawals

Rosemont Copper’s commitment to replenish 105 percent of its water use is admirable in and of itself. But the commit-ment to go even further by funding a pipeline allowing Community Water Company to bring CAP water into the area of hydrological withdrawal is of great benefi t

to the entire upper Santa Cruz basin area.Th ere is much talk that CAP water from

the Colorado River could be rationed or dry up all together.

Th e CAP board and staff have put several plans in motion to make sure that if a shortage is declared (and it has not been to date) that our municipal customers will be well protected. We have stored water for a dry day.

Please visit our website to read more about these water-banking activities and shortage-sharing agreements.

I am committed to making sure that CAP water is available to all of our custom-ers and would question why any elected offi cial in Pima County would not support this extraordinarily positive eff ort to bring much needed, real, wet water to Sahuarita and Green Valley.

Carol Zimmerman is one of four

members from Pima County who were elected

in November 2008 to serve six-year terms on

the 15-member the Central Arizona Water

Conservation District Board of Directors. Her

fi rm, Zimmerman Public Aff airs, is also a

consultant to Rosemont Copper.

CAROL ZIMMERMAN

YES, I think things will turn around . . . 46%I predict more of the same. . . . . . . . . . . 26%2012 will be worse than 2011. . . . . . . . 28%

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

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Next week’s poll: Is the housing market out of the woods yet?

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