Holiday rush for old Mervyn’s site Contractors on fast track to renovate vacant parcel Page 27 Port of Tucson Goes Global Expansion gets cargo to China Page 7 Culinary Destination Tucson on menu for best Mexican food Page 3 Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • JUNE 1, 2012 • VOL. 21, NO. 53 • $1 BOTSWANA BOOKER PAGE 12 Tour company specializes in trips to Africa TREO defends trip to San Diego Gordon Bates Inside Tucson Business Officials of Tucson Regional Eco- nomic Opportunities (TREO) issed a statement Wednesday (May 30) de- fending and explaining what it called a “Benchmarking/Best Practices” eco- nomic development trip May 16-18 during which Tucson City Councilman Paul Cunningham is said to have made inapropriate sexual comments to a city staffer at a bar. In its statement, TREO said the leadership exchange trip was by invi- tation only and that participants paid $2,000 each, all inclusive. Eight public officials were granted scholarships that were privately funded. Although TREO didn’t say it in the statement, Cunningham was one of those whose trip was paid by scholar- ship. At Tuesday’s city council meeting Cunningham said he apologized to several people. He said he had been drinking that night, the first night of the trip, and did not recall exactly what he had said. Mayor Jonathan Rothschild con- firmed to the Arizona Daily Star that the incident has been referred to the city attorney’s office, though city of- ficials haven’t confirmed whether an official complaint has been filed. Since the incident was revealed City Councilwoman Karin Uhlich has suggested Cunningham should con- sider resigning. Both Cunningham and Uhlich are Democrats, but they have disagreed on some key issues. Noting that it had conducted trips in previous years to Austin, Texas; Portland, Ore.; Albuquerque; and Huntsville, Ala.; the TREO statement said it believed the May 16-18 trip to San Diego showed the Tucson officials ideas on how to successfully building a knowledge-based economy that cre- ates jobs geometrically from start-ups and expansion rather than from re- cruiting and relocation.
Transcript
Holiday rush for old Mervyn’s siteContractors on fast track to renovate vacant parcel
Page 27
Port of Tucson Goes GlobalExpansion gets cargo to China
Page 7
Culinary DestinationTucson on menu for best Mexican food
Page 3
Your Weekly Business Journal for the Tucson Metro Area
Offi cials of Tucson Regional Eco-nomic Opportunities (TREO) issed a statement Wednesday (May 30) de-fending and explaining what it called a “Benchmarking/Best Practices” eco-nomic development trip May 16-18 during which Tucson City Councilman Paul Cunningham is said to have made inapropriate sexual comments to a city staff er at a bar.
In its statement, TREO said the leadership exchange trip was by invi-tation only and that participants paid $2,000 each, all inclusive. Eight public offi cials were granted scholarships that
were privately funded.Although TREO didn’t say it in the
statement, Cunningham was one of those whose trip was paid by scholar-ship.
At Tuesday’s city council meeting Cunningham said he apologized to several people. He said he had been drinking that night, the fi rst night of the trip, and did not recall exactly what he had said.
Mayor Jonathan Rothschild con-fi rmed to the Arizona Daily Star that the incident has been referred to the city attorney’s offi ce, though city of-fi cials haven’t confi rmed whether an offi cial complaint has been fi led.
Since the incident was revealed City Councilwoman Karin Uhlich has suggested Cunningham should con-sider resigning. Both Cunningham and Uhlich are Democrats, but they have disagreed on some key issues.
Noting that it had conducted trips in previous years to Austin, Texas; Portland, Ore.; Albuquerque; and Huntsville, Ala.; the TREO statement said it believed the May 16-18 trip to San Diego showed the Tucson offi cials ideas on how to successfully building a knowledge-based economy that cre-ates jobs geometrically from start-ups and expansion rather than from re-cruiting and relocation.
2 JUNE 1, 2012 INSIDE TUCSON BUSINESS
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Tucson looks to brand itself: Home of the best Mexican food in U.S.By Patrick McNamaraInside Tucson Business
For decades, Tucson has capitalized on abundant sunshine, unique desert land-scapes and golf to try to bring visitors to Southern Arizona. Now, a push has been launched to put Tucson on the culinary map as the home of the best Mexican food in the United States.
“Th is is something that’s been here for decades, now it’s time to tell the rest of the world,” said Chris DeSimone, a tourism in-dustry consultant.
Working with the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), DeSimone has helped launch a branding campaign staking out the Mexican food claim.
Discussing the plan over a plate of fi sh tacos at La Costa Brava restaurant, 3541 S. 12th Ave., DeSimone said the idea grew out of a bus tour he organized through Gray Line Tours. DeSimone also co-hosts with Joe Higgins a 6-8 a.m. weekday radio talk-show on KVOI 1030-AM and the two collab-orate on a biweekly column in Inside Tucson Business.
Th e “Best of the Barrio” tour takes visitors on a journey to several Mexican restaurants where they can explore the unique culinary traditions.
On a larger scale, DeSimone would like potential travelers to factor dining options into their plans when coming to Tucson.
For example, a group of golfers might choose Tucson over Scottsdale or Palm Springs based on the choices of Mexican restaurants here. Th at is, if they were aware of the culinary traditions of Southern Ari-zona.
Getting the eff ort started, the MTCVB has an advertisement section in the May issue of Phoenix Magazine lauding Tucson attractions and proclaims the city as home to the “best 23 square miles of Mexican food
NEWS
in the U.S.”Th e organization plans to expand the
campaign into additional markets and incorporate the content onto the visit-tucson.org and vamostucson.org web-sites.
Talks with the city have begun to place signs around the city notifying mo-torists of entry into the self-proclaimed 23-square mile zone of the country’s best Mexican food.
Th e move follows on a trend among destination marketing organizations that have been including a region’s distinct food traditions or restaurant off erings when promoting cities.
“It’s actually quite huge,” said Erik Wolf, president and CEO of the Interna-tional Culinary Tourism Association in Portland, Ore. “Food is more important in travel than many people might ad-mit.”
Wolf said tourism promotion organi-zations, like the MTCVB, can play a part in promoting local food culture by not only listing restaurants on their websites, but through instituting an accreditation program.
Factors included in the accreditation could be levels of regional sourcing and buy-in among the local community. Th e program should be open to members and non-members of a local visitors bu-reau.
And it wouldn’t be just for fi ne din-ing establishments, Wolf said, noting that the growing food-truck scene in the Portland area has become a popular des-tination for culinary travelers.
“I think many CVBs around the world are warming to the idea of food as a des-tination,” Wolf said.
Th e popularity of food and travel tele-vision networks also has helped to spur
BEST PLACES The Metropolitan Tucson Conven-tion and Visitor Bureau has begun to market Tucson as the home of the best Mexican food in the coun-ty. The organization has chosen the following eateries as representa-tives of Tucson’s food culture.
• Alejandro’s Tortilla Factory1800 E. Fort Lowell Road, Suite 100• Anita Street Market849 N. Anita Ave.• Aqui con El NeneFood truck at La Canada Drive and Wet
more Road• BK Carne Asada and Hot Dogs5118 S. 12th Ave.• Cafe Poca Cosa110 E. Pennington St.• Crossroads2602 S. Fourth Ave., South Tucson
El Guerro Canelo
CONTINUED ON PAGE 10 CONTINUED ON PAGE 10
AZ’s small business jobsoutpace national growth
Th e number of jobs off ered by small busi-nesses in Arizona grew 0.6 percent in May, which was three times the national average, according to the latest Intuit Small Business Employment Index.
Th e index shows that 40,000 new jobs were created nationwide in May by busi-nesses with fewer than 20 employees. Th e data comes from the 78,000 small business-es using Intuit Online Payroll.
Intuit’s report shows that the growth among small business employment out-paced Arizona’s overall growth in employ-ment, which was 0.19 percent.
False alarm fees now in eff ect
Th e Tucson Police Department says a 60-day grace period has ended and as of today (June 1), it will begin enforcement of a new false alarm ordinance.
Citations will be issued for false alarms, based on the alarm user’s registration sta-tus. Users who have not registered with the police department are subject to higher false-alarm assessments.
Th e ordinance requires an annual $20 registration fee. Registration can be done online at www.tucsonaz.gov/police and click on “Alarm Information,” although pay-ment must be made in person at one of the following locations:
• Westside Police Service Center, 1310 W. Miracle Mile, (520) 791- 4440
• City Hall, 255 W. Alameda St., (520) 791-4583
• County/City Public Works, 201 N. Stone Ave., (520) 791-5550
• Eastside City Hall, 7575 E. Speedway, (520) 791-4652
• Patrick K. Hardesty Midtown Multi-Service Center, 1100 S. Alvernon Way, (520) 791-5779
• General Services Department Price Service Center, 4004 S. Park Ave. No.1, (520) 791-4226
• Tucson Water, 310 W. Alameda St., (520) 791-2622
Users have the option to “opt out” of reg-istering, but to do so forfeits police response on any unconfi rmed burglary alarm and re-sults in a higher false alarm fee should po-lice offi cers respond.
4 JUNE 1, 2012 INSIDE TUCSON BUSINESS
NEWSIt’s hot, streetcar is under construction and merchants are desperate for businessBy Lee AllenInside Tucson Business
It’s probably unfair to call it a “Street-car Named Desire” — although plenty of people are desirous of what will hap-pen when it becomes operational — but in the meantime construction of the modern streetcar is testing the survival of specialty and small businesses along and near its 3.9-mile route from the Uni-versity of Arizona through downtown Tucson.
Travel Congress Street downtown and the path is defi ned by chain link corridors. Visit merchants along Fourth Avenue and there’s a similar scenario. Four months appears to be the standard time frame for fencing and barricades to block off vehicular traffi c while limiting or re-routing pedestrian mobility. Add those constraints to the fact that it’s sum-mertime when there are fewer people anywhere in the Tucson region and it’s not hard to understand why business owners are worried.
Th e Fourth Avenue Merchants Asso-ciation promotes its stretch of roadway “a Street of Dreams,” but what the 100 shops along that roadway are currently experiencing has become a disruptive nightmare.
Th e association’s website notes: “Fourth Avenue is a walking district and
CONTINUED ON NEXT PAGEA skateboarder takes the pedestrian lane to travel west on Congress Street downtown. Due to the closure of Congress Street, some vehicle traffi c has moved to the sidewalks.
Vehicle and pedestrian traffi c mix on the sidewalk by Sky Bar on Fourth Avenue.
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ACC OKs power lineto Rosemont mine
Offi cials of Rosemont Copper say they are pleased the Arizona Corporation Com-mission (ACC) voted unamimously to allow transmission lines to supply power to their planned mine in the Santa Rita Mountains southeast of Tucson.
“Th e ACC decision is another huge step forward for Rosemont, we now have approval to bring electricity to operate the mine,” said Kathy Arnold, vice president of environmental and regulatory aff airs for Rosemont Copper.
Th e company said it now has received six of the eight major permits needed to proceed with developing the mine. Th e two remain-ing permits are an Air Quality Permit and the Clean Water Act Section 404 Permit, both of which the company says it expects this year.
Opponents of the mine emphasized the May 23 decision still requires it get the re-maining permits.
“Th is decision recognizes the commis-sion’s duty to minimize and mitigate the en-vironmental impacts of the massive copper mine before allowing construction of the power line,” said Gayle Hartmann, president of Save the Scenic Santa Ritas, in a statement.
Arizona gas prices fallbut not as fast as some
While summertime gas prices are begin-ning to fall signifi cantly in many parts of the U.S., pump prices in Arizona are continuing to take the slow road down.
Th e average price in Tucson over the past week was $3.60½ per gallon, down about 3 cents per gallon from a week ago, accord-ing to AAA Arizona. A year ago, the Tucson average was $3.56 per gallon. Th e statewide average this week was $3.73 per gallon. States with the lowest average prices this week are in the Midwest and South.
Final 4 weeks to nominate2012 Women of Influence
Th e fi nal four-week nominating period for 2012 Women of Infl uence is approaching.
Th is is the ninth year of the program that seeks out women who are making a diff er-ence in the Tucson region, either in their ca-reer, the community or both.
Th e nomination form is at www.Inside-TucsonBusiness.com — click on the Women of Infl uence icon — and can be completed submitted online. It’s not necessary to have the form completed entirely but it is impor-tant to include enough information so judges can adequately evaluate the nominee.
Nominations can be submitted by anyone.Th e nominating period is open through
July 4. Ten honorees will be profi led in a spe-cial section in the Oct. 26 issue of Inside Tuc-son Business and introduced at a breakfast in November.
JUNE 1, 2012 5InsideTucsonBusiness.com
always has been, (so) a little construc-tion shouldn’t deter our valued custom-ers.” And offi cials continue to plead with shoppers to hang with the local stores during the upheaval.
Th e sign on the door of Epic Café, 745 N. Fourth Ave. at University Boulevard, reads: “All businesses along the strip will be struggling through the summer, hit hard by the construction. We ask those who care about the future of the small business community to remember us this summer and stop in to help make sure we survive.”
It’s a sentiment that is echoed by oth-er businesses in the area.
“Although it may be a bump in the road for some retailers, it’s a matter of economic survival for others and we can’t downplay their grief because there may be a few casualties,” says Michael Keith, CEO of the Downtown Tucson Partnership.
Hard numbers are diffi cult to come by because economic viability for many of the businesses is measured storefront by storefront.
“You can have one place doing OK and their neighbor next door will be struggling with revenue down 20 to 30 percent,” Keith says. “It’s a lot about product and customer base.”
Focusing on the torn-up section of
CONTINUED FROM PAGE 4
CONTINUED ON NEXT PAGEThe inversion of an advertisement enticing construction workers to take advantage of a discount is viewed through the window of Brooklyn Pizza Company, as a pair of customers wait for their order.
Pedestrians pass Pancho Villa’s on Fourth Avenue and Fifth Street.
NEWSThis Week’s Good NewsBicycle-friendliness
Th e League of American Bicyclists has ranked Tucson among the nation’s top 20 bi-cycle-friendly communities for 2012. Th e city ranked No. 19 overall and No. 4 among cities with populations of 500,000 or more.
Th e No. 1-ranked city overall is Boulder, Colo., and the top-ranked large city is Port-land, Ore.
The Tucson
INSIDERInsights and trends on developing andongoing Tucson regional business news
Tohono O’odham shakeup A big shake-up in the executive ranks at
the Tohono O’odham Gaming Enterprise. Virtually the entire marketing department has changed, among others. Gone too is well-liked CEO Scott Sirois, who had been there since July 2006. No explanations but the word is the shake-up may be borne out of frustra-tion the Pascua Yaqui Nation’s casinos — Casino Del Sol and Casino of the Sun — are winning the public perception battle over the Tohono O’odham’s Desert Diamond casinos.
But it comes at a diffi cult time for the To-hono O’odham who are continuing to fi ght a legal battle to build a casino just outside Glendale near the Arizona Cardinals’ Univer-sity of Phoenix Stadium.
La Paloma bad deal?While probably most Tucsonans welcome
the fact that new owners took the Westin La Paloma Resort and Spa out of bankruptcy and are embarking on some overdue renova-tions, it is among 12 big commercial mortgage workouts considered “the poster children” of recent bad deals done by loan servicers.
In a report, sarcastically titled “Presenting the Modifi ed Loan All-Star Team,” Deustche Bank commercial real estate analyst Harris Trifon cited the modifi cation of the $209 mil-lion loan on La Paloma and a sister resort in Hilton Head, S.C., that cut the interest rate to zero and extended the mortgage by 15 years, about three times the normal.
Th e deal was done in bankruptcy court. LNR Property, the nation’s largest servicer, was in charge of the La Paloma workout and blamed it on the court. According to bank-ruptcy lawyers with knowledge of the deal, the judge considered the potential alternative could lead to people losing their jobs.
Still though, the $600 billion U.S. market for commercial real estate loans now has more than 10 percent of delinquent loans that have been converted into securities the fi rst time the percentage has gone into dou-ble digits.
6 JUNE 1, 2012 INSIDE TUCSON BUSINESS
Congress Street at downtown’s east end, Keith says, “Businesses that depend on the lunch trade or downtown offi ce workers have largely been unaff ected, so we have to separate out restaurateurs versus retailers. Small retailers on Con-gress and some side streets, like Scott Av-enue and Sixth Avenue, are the ones tak-ing major hits downtown. Th ey weren’t huge money makers to begin with and need support, both in programs and customers, to make it through safely.”
Refuting a contention that some collateral damage must occur for the greater good, Britton Dornquast, man-ager of Regional Transportation Author-ity’s Main Street Program, says, “I don’t know if any business needs to fall by the wayside. Busi-nesses come and go irrespective of projects such as this. It’s going to be a total of 16 months, so no matter where you start, it’s going to eff ect everybody, period. Th e key is to minimize di-rect impact from construction up-heavals like this.”
Th e fi rst shov-els of the street-car construction project went into the ground April 9 and it’s due to be fi nished in late 2013.
“With a project of this size, there will be an impact, but our goal was to minimize that disruption,” says Jesse Gutierrez, streetcar con-struction project manager. “An am-bitious endeavor of this magnitude generally runs 550 to 600 days, but we’ve cut our timeline to 475 days. As an analytically-based per-fectionist, I admit we could have done some things diff erently, but probably not much better because of inherent constraints involved. Th is is about as good as it gets.”
Although the view from his offi ce on the 10th fl oor of City Hall is far from the smell of diesel fuel and clouds of dust at street level, Tucson Mayor Jonathan Rothschild looks out his window and re-mains convinced that short-term incon-venience will be worth the long-term benefi ts.
When U.S. Transportation Secretary Ray LaHood came to Tucson in April for the construction kickoff of what is now offi cially named Sun Link, Roth-schild acted as a master of ceremonies for the event, saying, “Th e streetcar will be a transformative project for the city, driving economic development from the university through downtown to the west side.” Downtown Partnership’s Keith agrees, “Th e streetcar corridor is the single biggest game changer Tucson has ever seen.”
Th e expectation is that once Sun Link begins operating it will connect retail, restaurants, clubs and theaters with the UA area stimulating economic develop-ment and redevelopment.
“As soon as a portion of track is in-stalled, we’ll begin testing vehicles per federal mandate,” says Gutierrez who vows that passen-gers will be riding before the end of 2013. Each of the eight train cars will have the capacity to carry 180 pas-sengers along the 17-stop route.
But that will be then…and this is now…with down-town merchants waiting anxiously for enough cus-tomer traffi c to keep their doors open in the weeks ahead. “We should see traffi c back to normal on the Congress Street corridor by Sep-tember for most of it and by October for all of it,” says Keith. “Once those construction fences start coming down, people are going to start fl ooding back in.”
Similar optimis-tic feelings can be found among many
of the nearly 1,500 businesses found ei-ther on or adjacent to the streetcar line all the way from Speedway Boulevard to the Westside Mercado. Ultimately, ac-cording to RTA literature on the streetcar, “Jobs will be created, congestion will be reduced, property values will increase, and business visibility, foot traffi c and market reach will all be extended.”
“If the promise of the streetcar holds true,” says Keith, “merchants along the route that have experienced lean times during its construction will make up this temporary shortfall later on.”
Doing what they can to help heal the hurt of construction By Lee AllenInside Tucson Business
Despite the earthmoving equipment and barricades in downtown Tucson and along Fourth Avenue, both areas are open for business and off ering special incentives to try to lure shoppers during the construc-tion of the Sun Link modern streetcar proj-ect.
“Th is isn’t something that snuck up on the merchants involved — it was four years in the coming,” says Britton Dornquast, who runs the Regional Transportation Au-thority’s Main Street, which assists business owners deal with access issues during road construction projects.
Th e Main Street program off ers services valued at $6,000 to $8,000 at no charge to businesses. But businesses along the con-struction route aren’t exactly stepping up to take advantage of what’s available.
“We’ve had 6,000 meetings with busi-nesses along this project and have pro-vided consulting services to about 150 merchants,” Dornquast said. “No one has a magic bullet, but our approach from day one was been that people who take advan-tage of these services could minimize any negative impact. Th e message these mer-chants need to keep alive is, ‘We’re open for business, shoppers have access, parking is not an issue, and it’s business-as-usual aside from the construction.’”
Merchants along Fourth Avenue are hammering on the fact that it’s still pos-sible to get from point A to point B, though in some cases it may involve a slight detour. Th e Fourth Avenue Merchants Association has come up with a “Construction Custom-er Shopping Card” off ering discounts for customers willing to overlook the current minor inconveniences.
Th e Downtown Tucson Partnership continues to stay on talking points by em-phasizing creation of a series of unique summer events designed to bring people downtown and the fact that because vehic-ular traffi c volume has dropped, it’s easier to walk around downtown. Rates to park in downtown parking garages have also been reduced.
“Th ere are 15,000 parking spaces down-town between meters, surface, and garage parking,” says Michael Keith, director of the Downtown Tucson Partnership. He adds, “We’ve positioned downtown for a pretty exciting charge once we come out of this.”
Th e Fourth Avenue Merchants Asso-ciation is straightforward in its appeal, “We need loyal customers now more than ever.”
CONTINUED FROM PAGE 5
Refuting a contention that some collateral damage must occur for the greater good, Britton Dornquast, manager of Regional Trans-portation Authority’s Main Street Program, says, “I don’t know if any business needs to fall by the wayside. Businesses come and go irrespective of projects such as this. It’s going to be a total of 16 months, so no matter where you start, it’s going to effect everybody, period. The key is to minimize direct impact from construction upheavals.”
NEWS
BIZ FACTS
Keep up with the latest on the construction of Sun Link, the modern streetcar, online at www.TucsonStreetcar.com
PUBLIC NOTICESSelected public records of Southern Arizona bankruptcies and liens.
BANKRUPTCIESChapter 11 - Business reorganization Randall M. Blixt and Sandra E. Blixt, 41856 W. Centennial Drive, Maricopa. (Principal assets: Little Game Hunters Inc.Fort Wayne, Ind.) Principal: Randall M. Blixt and Sandra E. Blixt, joint debtors. Assets: $279,101.00. Liabilities: $771,672.24. Largest creditor(s): Wells Fargo Home Mortgage, Des Moines, Iowa, $397,212.70, and Chase, Wilmington, Del., $78,670.36. Case No. 12-11608 fi led May 24. Law fi rm: Blake D. Gunn, Mesa
FORECLOSURE NOTICES Old El Dorado Stone Works LLC 1001 S. Tyndall Ave. 85719Tax parcel: 124-16-149AOriginal Principal: $288,000.00 Benefi ciary: Zions First National Bank, Salt Lake City Auction time and date: 10 a.m., Aug. 6, 2012 Trustee: Margaret Gillespie, Collins May Potenza Baran & Gillespie, 201 N. Central Ave., 22nd Floor, Phoenix
LIENSFederal tax liens Carson Concrete & Decking Inc., 3475 N. Dodge Blvd. Amount owed: $6,704.78.Ground Effects Landscaping Inc., 1602 S. Burning Tree Ave. Amount owed: $15,296.36. Tune Tech Inc., 2911 S. Lisa Place. Amount owed: $1,068.00. GRS Landscape Architects Inc., 11047 N. Cloud View Place, Oro Valley. Amount owed: $1,016.41. Amorosa Assisted Living and Corpuz Holdings LLC, 1659 N. Capitol Ave., San Jose, Calif. Amount owed: $4,847.95.Meadows Enterprises Inc., 1368 W. Roger Road. Amounts owed: $22,438.84 and $68,150.43.Fausto’s Independent Distributor and Agapito Fausto, 225 W. Calle Antonia. Amount owed: $3,314.08. Human Resource Staffi ng Inc., 1310 N. Dusty Hollow Court. Amount owed: $17,031.91.Better Bodies Wellness LLC and Jeramy James Price, 7285 E. Tanque Verde Road. Amounts owed: $780.00 and $114,897.98.ACH Pension consultants Inc., 4729 E. Sunrise Drive PMB 333. Amount owed: $7,134.38. Environmental Strategies Inc., 423 S. Olsen Ave. Amount owed: $162,429.35. Care Giver Connection of Arizona LLC and John C. Rambow and Dana A. Rambow, 698 E. Wetmore Road, Suite 210. Amount owed: $13,569.13.M&S Green Valley Enterprises LLC and James Estes, PO Box 1403, Sahuarita 85629. Amount owed: $13,948.52. E.L. Baca Construction Inc., 1401 E. Orange Grove Road. Amount owed: $489,020.24.J.R. Tuttle Co., PO Box 41553, 85717. Amount owed: $10,689.90.WPNT-Tucson LLC, 8838 E. Broadway. Amount owed: $31,347.21.Gwenneth’s Shoe Repair and Gwenneth T. Sheahan, 6072 N. Oracle Road. Amount owed: $8,653.51. Formula I Ltd., 596 E. 23rd St. Amount owed: $4,596.15.All Season Desert Landscaping and OND Contractors Services LLC, 2977 E. Manzanita Ave. Amount owed: $23,001/89.J&S Commercial Concrete Contractors Inc., 5820 S. Nogales Highway. Amount owed: $65,022.12.
State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)Emerald Glass Inc., 4500 E. Sunrise Drive, Apt. 16. Amount owed: $41,102.41.
JUNE 1, 2012 7InsideTucsonBusiness.com
Port of Tucson goes global, to ship directly to China
NEWS
By Roger YohemInside Tucson Business
By December, the Port of Tucson’s $19 million rail system expansion should be complete. Th at will enable the freight han-dler to ship intermodal containers for clients directly to destinations around the world. At a much cheaper price, too.
When cargo is handled less and moved by railway instead of roadway, the results are lower-cost competitive rates. And from a lo-gistics perspective, that may motivate more clients to pick Tucson over Long Beach.
California’s Port of Long Beach has be-come a hellish place for freight manage-ment. About 35 percent of all U.S. imports and exports transported by ship go through the ports of Long Beach/Los Angeles. Th e vast volume causes severe congestion prob-lems.
In addition to loading delays, the port area is plagued with air pollution. Diesel-burning cargo ships, semi-trucks and loco-motives idle while waiting to be loaded and unloaded. Th at chronic congestion is an op-portunity for the Port of Tucson, located at Century Park Research Center, just north of Interstate 10 off South Kolb Road.
“It’s always been our focus to provide services to become a true inland port, to put us at the head of international shipping. Th e international component was the key, to transload here instead of Long Beach,” said Mike Levin, executive vice president of marketing for the Port of Tucson. “Th e expansion is very important to our local economy. It makes the whole region more competitive.”
“It is a huge attraction for businesses that utilize container-shipping services, to help them expand their opportunities here. Th ey benefi t from lower freight rates. Others will relocate here,” he added.
Founded in 2004 by Alan Levin, Mike’s father, the Port of Tucson provides inter-modal and rail services. Th e 264-acre site is alongside the Union Pacifi c railroad line, a very strategic logistics location just 70 miles from the border with Mexico.
Th e port has its own locomotives and long side rails to transload cargo on inter-modal rail containers or on/off truck-load-ing docks. Th e port has a service contract with Union Pacifi c to provide intermodal container handling. Th is provides cross-border cargo options for companies to ship and receive goods and raw materials via container.
Th e expansion features 20,000 feet of new rail to handle unit trains of 60 to 100 rail cars. In 1,500-foot lengths, the rails were purchased from Union Pacifi c and currently are being installed.
“Under the current business model, car-go is unloaded at Long Beach and trucked here. Th e new model will ship intermodal containers directly right on the trains to and
from Long Beach to Tucson,” Levin said. “We have a commitment from Union Pacifi c to do this international service, along with pricing direct to Shanghai, China.”
“Th ere are companies in the area that want to ship directly to China,” he added.
Although Levin would not reveal their rates, he provided an example of the poten-tial savings. Th e cost to truck a commodity from Nogales to Long Beach is about $1,900. For “way less” than $1,900, the Port of Tuc-son will be able to ship directly to Shanghai, he said.
Th e actual container is the port’s cargo, not what’s inside. Although Levin may not know the specifi c contents of a shipment, most of the goods are bulk materials such as grains, iron ores, steel, lumber, machinery and parts, and other agricultural and indus-trial cargo that can be containerized.
Until the expansion is on line, Levin is pursuing more business. Th e expansion “al-lows us to reach a new scale of operations for international service.” Th e added capac-ity should open up new opportunities to take advantage of rail lines that reach Long Beach; Kansas City, El Paso, and Houston to the east; and Mexico to the south,
“For years, there’s been a lot of studies and talk about inland ports. With the ability to do international containers, that makes the Port of Tucson a true inland port for the region,” Levin said. “It’s no longer talk, it’s now a reality.”
TOP RIGHT: Tucson City Councilwoman Regina Romero during a site tour at the Port of Tuc-son’s $19 million expansion with Mike Levin. RIGHT: Alan Levin and Mike Levin. BELOW: The port has its own locomotives and long side rails, one of which is two miles long.
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8 JUNE 1, 2012 INSIDE TUCSON BUSINESS
JUNE 1, 2012 9InsideTucsonBusiness.com
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10 JUNE 1, 2012 INSIDE TUCSON BUSINESS
the interest in regional cuisines across the country.
Several Tucson-area restaurants have been featured in national TV shows such as “Man v. Food,” “Food Wars” and “Bizarre Foods with Andrew Zimmern.”
As for the claim that Tucson has the best
Mexican food north of the border, DeSimo-ne says he’s ready to put it to test.
Phoenix, Albuquerque, Los Angeles or San Antonio, DeSimone said Tucson could hold its own against any of them.
“I’ve gone to other Southwest cities and our collection of Mexican restaurants kicked
the crap out of them,” he said. “I can’t fi nd any other community in the Southwest that even comes close.”
• El Charro Cafe311 N. Court Ave.• El Dorado1949 S. Fourth Ave., South Tucson• El Gorrion3459 S. 12th Ave.• El Guero Canelo5201 S. 12th Ave.• El Mezon del Cobre2960 N. First Ave. • El Merendero 5443 S. 12th Ave. • El Minuto 345 S. Main Ave. • El Rio Bakery901 N. Grande Ave. • El Torero231 E. 26th St.• Guadalajara Grill1220 E. Prince Road• Guillermo’s Double L1830 S. Fourth Ave., South Tucson• La Costa Brava-Rodriguez Seafood
Company3541 S. 12th Ave.• La Estrella Bakery 5266 S. 12th Ave. • Las Cuatas Tortilla Factory1501 W. St. Mary’s Road• Little Cafe Poca Cosa151 N. Stone Ave.• Los Jarritos4832 S. 12th Ave.• Los Portales2615 S. Sixth Ave,, South Tucson • Martin’s Comida Chingona557 N. Fourth Ave.• Micha’s 2908 S. Fourth Ave., South Tucson • Miguel’s 5900 N. Oracle Road• Mi Nidito1813 S. Fourth Ave., South Tucson • Oasis Fruit Cones1002 W. St. Mary’s Road• Perfecto’s 5404 S. 12th Ave. • Rigo’s 5851 N. Oracle Road• Rosa’s Mexican Food1750 E. Fort Lowell Road, Suite 164• Tania’s 33614 N. Grande Ave.• Taqueria Juanitos708 W. Grant Road• Taqueria Pico de Gallo2618 S. Sixth Ave., South Tucson• Teresa’s Mosaic Cafe2455 N. Silverbell Road
La Costa Brava
BEST MEXICAN CONTINUED ON FROM PAGE 3
Downtown Tucson Partnership produced this map showing multiple ways to reach downtown amid ongoing streetcar construction.
NEWS
JUNE 1, 2012 11InsideTucsonBusiness.com
SALES JUDO
Five ways to mismanage your revenue producers Twice a month since March 16, we’ve
been dealing with ways to ARM — attract, retain and motivate — your business’ revenue producers, this time I off er up fi ve ways to dis-ARM — or mismanage — your teams of producers.
It’s tough to come up with a top fi ve because there are so many, but here are some real winners:
1. Promote your top producers to managers.
Top producers are usually those who prospect, qualify and close better than their peers or, in their opinions, any other mortal. Th ey are task oriented self starters who focus like lasers on generating new accounts. It’s only natural to want to “reward” them by promoting them and to produce as many clones of them as possible.
Sadly neither usually works out because top producers expect their own team members to be just like themselves: tough, smart and hardworking with a “take no prisoners” attitude. Management abilities to “nurture” and to have “empathy” are words that are not in their vocabularies.
Further, managers are supposed to be the buff ers between their producers and organizations. Lots of issues and irritants surface each month: expense reports challenged by accounting, new clients fail to be approved by credit or underwriting departments, existing clients are cut off by accounts receivable and the business miscalculates or takes away commissions. Th en there are the so called leads from others in the organization that don’t go anywhere and are considered a waste of time to the producer while the lead giver thinks it’s nothing more than a lazy produc-er who can’t get the job done.
Issues and irritants like these are usual and customary in all organizations, and it takes the cool heads of skilled managers to keep them from escalating into open
warfare. Often, aggressive top producers who are newly promoted to the roles of managers lack both the aptitude and training required to manage these situations.
Th e net eff ect of this can often be complete turnover of a sales department within a year and a “double whammy” drop in revenues. Not only is the producer’s own production cut in half, but their team’s production is reduced due to so many vacancies. As if this weren’t bad enough, off ending managers become personae non grata within their own organizations and are then often fi red or quit.
2. Don’t profi le your candidates. Your best managers are often not your
best producers. Managers are patient, calm, diplomatic and non-confrontational. Th ey recognize producers have diff erent personalities and respond to challenges in diff erent ways. Managers understand they must apply diff erent methods to each producer to achieve optimal performance.
Most of the standard profi ling instru-ments (Briggs-Meyers, DISC, Brinkman), when used with your best managers, will identify the attributes that make them so good. When you then select managerial candidates with these attributes, you will usually fi nd those with the best aptitudes.
Good managers will also profi le their producers in order to place the right people into prospecting, account service and technical sales roles.
3. Don’t train your managers.Aggressive producers can and do learn
to control counterproductive behaviors and often become fi rst-rate managers, if they
receive the right training and guidance. As it turns out, producers with high levels of dominance are character actors at heart and can assume almost any role required at least for an hour or so, which is long enough to deal with each producer or situation in the most eff ective manner. However, they’ll need to be shown the right model behaviors so they can reproduce them, and that’s where training comes in.
Th ere are several good texts on sales management, and a classic is “Dalrymple’s Sales Management” by William L. Cron and Th omas E. DeCarlo published by John Wiley & Sons and now in ts 10th edition.
Th e University of Arizona’s Eller College of Management also off ers a semester long course, Management of Sales Operations.
One of my favorite books is “First Break All the Rules: What the World’s Greatest Managers Do Diff erently” by Marcus Buckingham. While it doesn’t address the management of producers, per se, most of its fi ndings still are pertinent.
4. Load up your producers with reporting requirements.
Most producers resist having to feed their sales force automation and customer relationship management systems because they would rather be out prospecting for and closing on new business or servicing existing clients. But even they understand the need for pipeline management and solid sales forecasts. With a mix of coaxing and coercion, they’ll “render unto Caesar what is Caesar’s due” putting in about four hours a week, or 45 minutes each day into such administrative activities.
But if the total time commitment is greater than that, producers’ productivity will decline. In some extreme cases, most notably in pharmaceutical sales, two hours or more a day are spent on these tasks. I know of pharma reps who are preparing to leave their employer because these burdensome and unproductive administra-
tive requirements cut so deeply into their revenue generating time. Th ey also feel the sales culture of their organization has been subordinated to the needs of the “pencil-necks” and “fi nance geeks.”
5. Accept ‘cram downs’ from senior management that aff ect budgets, compensation plans and territories.
Many of us have been given aspirational rather than achievable sales targets on the grounds that “a man’s reach should exceed his grasp, or what’s a heaven for?” And adjusting compensation plans and territories can be just as perilous.
Competent managers must evaluate the economic and emotional impacts of any of these types of changes on their producers and, if they anticipate serious fallout, push back against ill advised “cram downs.” Th is takes courage, skill and deftness.
During good economies where the job market for producers is strong, failure to push back eff ectively can result in the loss of entire sales teams in the space of six months. When the job market is weak, most producers will “suck it up” and stay longer, but they’ll be on the lookout for another job and their hearts will no longer be in the fi ght, which will show in their productivity.
Th ese are my top fi ve sales mismanage-ment follies, but I’d like to hear what you have to add. Send your favorites, and I’ll include them in my next column, minus your identities, of course.
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PROFILE
Tour operator books trips half-way around the world, in South Africa By Christy KruegerInside Tucson Business
South Africa is 10,000 miles from Tucson and starting a company that relies on business partnerships in a country almost halfway around the world may seem like a risky proposition, but Terry von Guilleaume, founder and owner of Destination Southern Africa, thrives on risk. And he’s discovered that taking a fearless attitude about fi nancial opportunities can pay off .
Von Guilleaume was born in South Africa to a South African father and American mother, which allowed him the privilege of dual citizenship. After college he traveled to the U.S., and while working in Jackson Hole, Wyo., he met his future wife, a Tucsonan. Although he longed to return to his home, von Guilleaume came to Tucson and decided to make the best of it.
“I told myself, if I keep saying how wonderful South Africa is, why don’t I sell it?” His plan was to become a tour operator specializing in travel to his homeland.
While researching possibilities, the Sept. 11, 2001, attacks on the World Trade Center and Pentagon changed how Americans viewed travel to foreign countries. Folks told von Guilleaume there was no room for new travel businesses post-9/11.
“I saw it as an opportunity to start because there’s less competition,” said von Guil-leaume, who launched Destination Southern Africa out of his house in October 2001. Th ree years later he moved to an offi ce on Grant Road and Interstate 10 and then relocated again in 2008 to his current location at River Road and Campbell Avenue.
“Th at was when everything changed,” he said of the third move. Annual revenue for the company, which was $400,000 in 2008, was about to grow drastically. But fi rst von
Guilleaume had major hurdles to overcome.As the 2010 World Cup was to be held in
South Africa, von Guilleaume applied to Fédération Internationale de Football Association (FIFA) to be an offi cial tour operator. Th ree companies out of the 250 that
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Destination Southern Africa/South African Airways Vacations1050 E. River Road, Suite 100www.myafricavacation.com(520) 882-3600
Left: Cooling off — as some elephants do the same — at Savute Safari Lodge in Botswana.
Below: Destination South Africa’s Terry von Guilleaume and his family stop during a
morning game drive at Madikwe Safari Lodge.
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JUNE 1, 2012 13InsideTucsonBusiness.com
applied in the U.S. were selected. Destination South Africa was one of them. It was a grueling, drawn-out process.
“First we had to send FIFA a $50,000 non-refundable deposit. Th en we had to prove we had enough hotel rooms in South Africa, and for every ticket sold to an American, we had to have fi ve nights of accommodations.”
He applied for loans to cover the room deposits, but both his banks denied the requests. So he visited the community-friendly Bank of Tucson and was approved for a $250,000 loan.
The next item thrown at him from FIFA was the requirement to have a partner airline. He was already working with South African Airways, so he put down more money to reserve seats.
“We were half-a-million dollars in debt before we ever started,” von Guilleaume said.
Th e man obviously has a high tolerance for risk. He feels his passion for South Africa and a positive attitude helped him through this period. “My outlook was it’s not the end of the world. Th e worst case, we’d have to pack up
and live in the jungle. I had no fear cloud hanging over my head.”
In the end, the risk paid off . “We purchased $8 million in hotel rooms. We sold until the day before the fi nals and made a signifi cant profi t.”
Part of Destination South Africa’s success in selling the World Cup was its diversity of packages, off ering travelers a choice of nearly 40 diff erent hotels.
“I worked 18-to-20-hour days for one-and-a-half years. I went from being blond to gray,” von Guilleaume said. But he feels it was worthwhile – both fi nancially and for accom-plishing what had seemed to be a daunting task. “Th e U.S. sent more people to the World Cup than any other country,” he reported.
Following the World Cup, he signed a four-year contract with South African Airways’ vacation program. “We, as the tour company, provide land service in Africa and we sell the airline. Flights depart from Washington, D.C., and JFK.”
When not booking massive events like the World Cup, von Guilleaume typically plans custom South African trips for couples, families and occasionally groups. Five to seven times a year he fl ies over to meet with partners and perform site inspections, and every two years he takes his wife and kids. Favorite activities on those trips, von Guilleaume said, are remote safari experiences and the beach.
“We go on safari with a private ranger and do things that normal tourists can’t because of liability. My kids are spoiled being exposed to safari. Th ey’re huge nature and outdoor fans. And it’s nice to have a beach holiday. Every-where, the people are great.”
At home and afar, von Guilleaume is a philanthropist, helping a number of needy organizations. His foundation, Destination South Africa Pays it Forward, supports education, gardening, poor villages and orphanages in South Africa. Over the years, he’s donated dozens of trips and safaris to nonprofi ts such as Th erapeutic Riding of Tucson, Tucson Village Farm and Rotary.
Von Guilleaume would like to take another step in merging his love for Tucson and his home country - one that could eventually help our area’s tourism. He envisions the develop-ment of a sister-city program between Tucson and a South African city that would encourage more South Africans to travel here. After all, he pointed out, DSA also stands for Destination Southern Arizona.
Terry von Guilleaume at Madikwe Safari Lodge, which is four hours by road outside of Johanensburg, South Africa. Safaris are the No. 1 reason Americans travel to Southern Africa.
14 JUNE 1, 2012 INSIDE TUCSON BUSINESS
70 yearsstill counting.
SPECIAL EVENTS
Rosemont Project Update & Logistics Issues S. AZ Logistics Education Org. (SALEO)Wednesday (June 20) 5:30 to 8:00 p.m.Viscount Suite Hotel, 4855 E. BroadwayRSVP: [email protected] or 977-3626Cost: $30 ($25 members & 1st-timers, $10 students)
REGULAR MEETINGS
Southern Arizona Logistics Education Organization (SALEO)Third Wednesday Location and times varyInformation: al@saleo, (520) 977-3626 or www.saleo.orgCost: $25 members and 1st-timers; $30 nonmembers Superior Business NetworkingFirst and third Tuesday
The Annuity Doctor — Curt ZachariasEvery Tuesday - 3:30 p.m. Bookmans, 6230 E. Speedway, Community RoomInformation: Curt Zacharias (520) 990-0009Cost: Free
Tucson Association of ExecutivesEvery Wednesday
6:30 to 8 a.m.Tucson Country Club 2950 Camino PrincipalRSVP: (520) 321-0879, taeoffi [email protected]
Tucson Business ConnectionFirst Wednesday 5 to 7:30 p.m.Pearl Nightclub 445 W. Wetmore RoadInformation: (520) 219-0266, [email protected] or www.tbcnetworking.comRSVP: Not requiredCost: Free to attend,
free snacks, cash bar
Tucson Christian Business Connections First and third Thursdays 7 a.m.3516 E. Grant RoadInformation: Robert E. Hinske, (520) 795-7195 or (520) 990-5374
Tucson Computer SocietyThird Monday 6 p.m. (pre-session) 7 p.m. (meeting)Pima County Medical Society Auditorium
5199 E. Farness DriveInformation: (520) 625-4419 or www.aztcs.orgCost: Free*No meeting in September
Tucson Downtown Sertoma Club First and third Wednesday 11:30 am to 1 p.m.Viscount Suites 4855 E. Broadway Information: www.tucsonsertoma.org RSVP: [email protected]
CALENDAR
JUNE 1, 2012 15InsideTucsonBusiness.com
United Way Circle of ExcellenceCAMPAIGNRECOGNITIONLUNCHEON
May 15, 2012
16 JUNE 1, 2012 INSIDE TUCSON BUSINESS
In honor of a great man, a great leader, and a great volunteer,the United Way of Tucson and Southern Arizona Board of Directorshas renamed the “Spirit of Tucson Award” to the “Michael J. HarrisSpirit of Tucson Award.” This award is the campaign’s top honor andgoes to the company who highly represents corporate involvementand community leadership. This award recognizes not only UnitedWay involvement, but also broader community support.Mike was our 2010-2011 Campaign Chair who passed away lastMarch. Mike was a United Way volunteer for nearly 40 years and hispassing left a big hole in the heart of this organization and in all whoknew him. Mike lived, slept and breathed the Spirit of Tucson. Hispassion and dedication inspired us all, and we believe it imperativethat his vision and mission live on at United Way of Tucson andSouthern Arizona.
More than 600 companies have partnered with United Way and we thank each of them for their dedication to advancing the common good throughout Southern Arizona. The following companies and individuals received special honors for their outstanding commitment to our community:
Winner: CitiLeft to Right: from Citi: Paul Brozovsky, Martin Carrillo, Jeffrey Ceresnie, Michael Dorer, Jason Ott, and United Way Board Chair Neal Eckel
Nominees:
Michael J. Harris
Michael J. Harris Spirit of Tucson Award
JUNE 1, 2012 17InsideTucsonBusiness.com
The Partnership Award
Best Small Company
Champion of Caring Award
Best Medium Company
Building a Better
Community Award
All American Award
Howard Stewart
Best Large Company Young Leaders
Society Company
of the Year
Best of the Best Award
Amanda Blankenbaker
GEICO
LIVE UNITED Award
United Way Circle of Excellence Award Winners
Best Employee Campaign Coordinators 2011-12 Volunteer Campaign Cabinet
Jim Holmberg, Bank of America (retired)Gregg Johnson, University of PhoenixBrian Kish, University of Arizona FoundationMatt Muehlebach, Hecker & Muehlebach PLLCTom Murphy, Community VolunteerDoug Myers, Hilton & Myers AdvertisingCindy Parseghian, Ara Parseghian Medical Research FoundationPatricia Raskob, Raskob Kambourian Financial Advisors, Ltd
Karen Christensen & The Rays of Hope Committee Raytheon
Susan Johnson Rick Engineering Company
United Way Committee Southwest Gas
Sonny Lopez Target
Lisa Uhler Target.com
Christina Geare The University of Arizona Health Network
Donna Morton TMC
Pat Araiza Trico
Mel Dulaney Tucson Electric Power Company
Sharon Foltz Tucson Electric Power Company
Dani Tarry TUSD
Rob Auman Westin La Paloma Resort & Spa
Joanne Trinidad Westin La Paloma Resort & Spa
18 JUNE 1, 2012 INSIDE TUCSON BUSINESS
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JUNE 1, 2012 19InsideTucsonBusiness.com
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GET ON THE LISTNext up: Retirementcommunities, Active adult retirement apartments, Assisted living facilities
Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Cat-egories that will be published in upcoming weekly issues of Inside Tucson Business are:
• June 8: Internet service providers, Web-site designers, Computer hardware retail-ers, Software companies
• June 15: Retirement communities, Ac-tive adult retirement apartments, Assisted living facilities
• June 22: Offi ce machine retailers, Offi ce furniture retailers, Offi ce supply retailers
• June 29: Grocery stores, Drug stores• July 6: Biotech fi rms, Optics companies If your business fi ts one of these catego-
ries, now is the time to update your profi le. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can cre-ate a profi le by following the directions.
Th e Book of Lists is a year-round refer-ence for thousands of businesses and indi-viduals. To advertise your business, call (520) 294-1200.
RETAILSunflower stores to become Sprouts in July
Th e Tucson region’s four Sunfl ower Farmers Markets will begin to be converted
to Sprouts Farmers Market the second week of July after the two chains on Tuesday com-pleted their merger. Sprouts already has one store in the region.
Th e merger, which had been announced in March, combines the two chains into one, based in Phoenix, that company offi cials say will hit $2 billion in revenue this year. Together they will operate 144 stores in Ari-zona, California, Colorado, Nevada, New Mexico, Okahoma and Texas.
New president of eegee’s appointed
Longtime eegee’s employee Robert Jens-en has been promoted to president of the company.
Jensen began his employment at eegee’s as a cashier in 1976 and has since worked in
almost every department of the company. His previous position was director of
commissary operations. He was responsible for the purchasing, manufacturing and dis-tribution of all products for store operations. He also oversaw the catering, wholesale and special event departments.
Tucson-based eegee’s opened in 1971.
Pep Boys nixes selling to private equity firm
Pep Boys, operator of auto parts stores and repair shops, has decided against a deal to by bought out by a Los Angeles-based pri-vate equity fi rm and instead will remain pub-lic. Th e deal was valued at close to $1 billion.
As a result the Gores Group is paying Pep Boys a $50 million termination fee.
BRIEFS
continued on Page 20
20 JUNE 1, 2012 INSIDE TUCSON BUSINESS
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INTERNATIONAL TRADE
Mexican trade missionhas orders to fulfill
An upcoming trade mission to Mexico has a defi ned mission: to help various busi-nesses in Sonora fulfi ll their needs for aero-space-grade metals, plastic resins, metal plating, heat treating and packaging.
From June 18-21, business owners and representatives are invited to join the Ari-zona District Export Council, Metropolitan Tucson Convention and Visitors Bureau’s Mexico Marketing Department and the U.S. Commercial Service/Arizona on a trade mission to the Sonoran industrial centers of Hermosillo and Guaymas.
Th e trip is an opportunity to meet the re-gion’s business leaders and explore Sonora’s vibrant industries of aerospace, automotive, electronics and healthcare technology, ac-cording to Eric Nielson, an Arizona director with the U.S. Department of Commerce In-ternational Trade Administration.
Hermosillo’s economy includes a Ford Motor Co. assembly plant and the port city of Guaymas is the site of Maquilas Tetakawi, Sonora’s largest industrial employer with
over 11,000 employees.Th e mission’s organizers are working with
several groups in Sonora to fi ll not only the above-mentioned needs, but also to fi nd var-ious wire harness assembly components.
Th e $700 registration fee does not in-clude transportation to Mexico, hotels or meals. Some participants may be eligible for travel grant assistance. Registration is online at www.regonline.com/sonora2012 or by contacting Nielsen at [email protected] or (520) 670-5808.
LEGALS.C. man arrested for threats at TIA
Federal authorities at Tucson Interna-tional Airport arrested a South Carolina man on charges that he made threats involving an explosive while aboard an aircraft.
Ivan Bugakov, 24, of Jacksonville, S.C., was arrested on Monday (May 28) and charged with false information and threats involving aircraft.
A federal complaint said that Bugakov was on a U.S. Airways fl ight that was sched-uled to depart Tucson when he became loud, unruly and belligerent. When he al-legedly refused to follow fl ight crew orders the crew decided to taxi the plane back to the gate where Bugakov was removed.
While exiting the plane, Bugakov allegedly
BRIEFScontinued from Page 19
JUNE 1, 2012 21InsideTucsonBusiness.com
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told the fl ight crew and fellow passengers that there was a bomb onboard. When confronted by airport police, Bugakov allegedly said that he had a bomb in his carry-on luggage.
Th e passengers were required to disem-bark from the plane. Luggage and passen-gers were then re-screened. Bomb detection dogs were brought in to search for explosive devices, but none were found.
A conviction for false information and threats involving aircraft carries a maximum penalty of fi ve years in prison, a $250,000 fi ne or both.
POLITICSSteel workers pressure Grijalva
Although the proposed Rosemont Mine in the Santa Rita Mountains south of Tuc-son doesn’t fall within the boundaries of U.S. Rep. Raul Grijalva’s new congressional district, the United Steelworkers of America is pressuring him to lend the project his support.
United Steelworkers Local 937 staged a protest at the Democratic congressman’s re-election campaign headquarters, letting Grijalva know that the organization sup-ports the controversial mine plan.
Grijalva has long been a friend of labor organizations, with a lifetime rating of 97 percent from one of the country’s largest and most infl uential unions the AFL-CIO.
HUMAN RESOURCESArizona EEOC complaintsup 31% over last 2 years
Complaints fi led against employers in Arizona by the U.S. Equal Employment Op-portunity Commission are up 31 percent over the past two years.
According to the agency, there were 2,854 complaints fi led in the state in fi scal year 2011, which ended Oct. 31, up from 2,486 complaints for fi scal 2010 and 2,178 complaints for fi scal 2009. Th e state ac-counted for about 2.9 percent of all charges fi led, the EEOC said in its report.
Of the workplace discrimination charges fi led for 2011, 43.9 percent were about re-taliation, 30.3 percent involved sex discrim-ination and 21.5 percent were about race discrimination.
CIVICOro Valley Chamber togive 3 scholarships
Th e Greater Oro Valley Chamber of Com-merce plans to award three area students with $2,000 scholarships.
Interim University of Arizona president Dr. Eugene Sander was the scheduled guest speaker for the awards breakfast on Th urs-day (May 31).
Th e breakfast takes place at 6:45 a.m. at
the Oro Valley Country Club, 300 W. Greenock Drive, Oro Valley.
Th e scholarship fund in named after E.S. “Steve” Engle, an Oro Valley founding father who served as mayor from 1978 to 1990.
Until his death in 1990, Engle gave schol-arships to deserving students. Following his death, the Greater Oro Valley Chamber of Commerce started a scholarship program in Engle’s memory.
Funds to support the awards are raised in part through the chamber’s annual fund-raising golf tournament, to be held June 8 at the Hilton El Conquistador Country Club, 10555 N. La Canada Drive, Oro Valley.
Interested golfers can call the offi ce at (520) 297-2191, or email president/CEO Dave Perry at [email protected] to sign up.
Sigma Chi donates $21K for Diamond Center
Th e Sigma Chi chapter at the University of Arizona has donated $21,000 for the Uni-versity of Arizona Medical Center – Dia-mond Children’s and the University of Ari-zona Steele Children’s Research Center.
Th e fraternity raised money for the do-nation through its “Derby Days” fundraiser, which more than 400 people attended.
BRIEFS
22 JUNE 1, 2012 INSIDE TUCSON BUSINESS
ON GUARD
JOBS Act creates new tool for entrepreneurs: crowdfundingTh e entrepreneur holds a sacred place in
the American psyche. In the sprawling context of world history it wasn’t long ago that entrepreneurs built the United States from a wild colonial outpost of the British Crown into the largest economy the world has ever seen.
Even today, we as a society, tend to sanctify our favorite entrepreneurs — the recent passing of Apple founder Steve Jobs comes immediately to mind. Entrepreneur-ialism has been a central value to the millions who have emigrated to the U.S. over the years, and it remains an ideal to millions of Americans currently growing into adults.
According to the Kaufman Institute, a think-tank dedicated to the advancement of entrepreneurship, at any given time 10 million American adults are in the process of starting upwards of 6 million businesses. Of course, as anyone who has ever started a business knows, getting it off the ground is incredibly hard work. Would-be entrepre-neurs who can’t raise needed capital will likely never see it come to fruition, no matter how innovative the idea.
With this problem in mind, President Obama signed the Jumpstart Our Business Startups (JOBS) Act in April. Th e legisla-tion, which passed Congress with strong bipartisan support, essentially makes legal a new sort of fundraising for businesses called “crowdfunding.”
What is crowdfunding? It works like this: entrepreneurs can pitch their start-up ideas to large networks of small-investors and potentially raise signifi cant amounts of seed capital for their businesses in ex-change for equity.
Unlike venture capitalists, who typically give hundreds of thousands, or even millions of dollars to companies they fund, investors in crowdfunding networks make small investments. But, since the invest-ments in crowdfuning come from a large network of investors, businesses can raise signifi cant sums of capital.
Of course, this new method of funding startups poses new risks to both crowd-funding investors and entrepreneurs who utilize crowdfunding networks. Writing in Wake Forest University’s Journal of Business and Intellectual Property Law, Joseph Norman outlines several benefi ts and risks of the new legislation that both entrepre-neurs and investors should be aware of.
Th e crowdfunding provision pre-empts state blue sky laws with regards to state registration. As a result, crowdfunding issuers can avoid thousands of dollars in registration fees and a signifi cant amount of reporting requirements. Th e issuer does not get off scot-free though since the Act requires the issuer to make the basic
disclosures available to the states.
• Benefi t: Issuers can raise funds for niche projects
Because the venture capital industry is competitive and selective of funding
opportunities, many projects go unfunded. Some of these projects may go unfunded because their intended market is not developed enough to support a large-scale investment. Crowdfunding will help these “niche” projects since chances are that someone else probably sees the utility in the niche project. Now, those like-minded persons can band together to fund the proj-ect and still avoid costly registration.
• Benefi t: Funding without ceding control
In a typical venture capital relationship, the entrepreneur cedes signifi cant control of the project to the venture capital or angel investor. Crowdfunding allows the entrepre-neur to avoid having to give up control since the funds come from a dispersed group of investors who are purchasing small stakes in the company rather than a single investor who will want some control for safety.
• Risk: Crowdfunding law is unsettledTh e JOBS Act is a signifi cant liberaliza-
tion of securities law; as such, the outer boundaries of crowdfunding practice have yet to be established. Th is uncertainty presents signifi cant risk for issuers.
• Risk: Greater number of investors means greater exposure to lawsuits
Because the JOBS Act grants a cause of action to investors by which they can rescind their investment with interest, each investor presents an individual chance of antifraud liability. Th is should be a top concern to issuers.
While the Jumpstart Our Business Startups Act will be a boon to many entrepreneurs and small investors, all parties involved should be well aware of various the liability issues and other risks that crowdfunding and its large networks of small investors create.
America has a long distinguished legacy of entrepreneurship, and crowdfunding is sure to help businesses and investors who fully understand its risks and benefi ts to add to that legacy.
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.
GOOD BUSINESS
KIM STATES
TUCSON BBB ACTIVITY REPORT MAY 2012Top 10 most complained about industries Complaints Settled
New car auto dealers 7 86%
Martial arts supplies and equipment 3 33%
Beauty salons 3 67%
Air conditioning contractors and systems 3 100%
Auto repair and services 3 100%
Car washes and polishers 3 100%
General contractors 2 50%
Painting contractors 2 50%
Major appliance dealers 2 100%
Plumbing contractors 2 100%Top 10 most inquired about industries Inquiries
1. Air conditioning contractors and systems 1,672
2. Roofi ng contractors 1,307
3. Auto repair and service 1,140
4. Used car auto dealers 942
5. Travel clubs 934
6. Plumbing contractors 901
7. General contractors 809
8. Pest control services 691
9. Landscape contractors 684
10. Movers 600
Source: BBB of Southern Arizona
Local Biz News ONE CLICK AWAY
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JUNE 1, 2012 23InsideTucsonBusiness.com
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MEDIASummer has just started but Pac-12 Network eyes football season launch By David HatfieldInside Tucson Business
Th is month, schedules will be released for the new Pac-12 TV network, which is due to launch in 76 days, on Aug. 15. It is without a doubt, the largest TV venture undertaken by an NCAA conference and it has raised plenty of questions, as even University of Arizona Director of Athletics Greg Byrne acknowledged in a Wildcat Wednesday newsletter recently.
Th ere are more questions than answers at this point, but here are a few with answers:
• What is the Pac-12 Network?It’s actually not one but seven networks.
We’ll have an Arizona network focused on the UA and Arizona State University but there also will be a Southern California network (for the University of Southern California and University of California Los Angeles), Northern California (University of California and Stanford), Mountain network (Colorado and Utah), Oregon (Oregon and Oregon State), Washington (Washington and Washington State) and a national network for the rest of the country.
• Where will I fi nd it?In Tucson if you subscribe to Cox or
Comcast cable, you’ll be able to get it. If you subscribe to either of the two satellite companies, DirecTV or Dish Network, neither has a deal yet to carry the networks. Both sides say they’re negotiating.
Pricing details still have yet to be worked out, according to people at the two cable companies. Pac-12 Network offi cials suggest that at least initially, their deals should allow cable companies within the Pac-12 to carry their respective networks on lower-priced tiers, at least initially.
Additionally, the Pac-12 is aggressively looking to off er its programming on tablets and other mobile devices.
• Should I be worried if I’m a satellite subscriber?
Maybe. Both DirecTV and Dish Network have a reputation for going down to the
wire on some of these kinds of negotia-tions. Th e unknown, of course, is whether there will be any ramifi cations from upset subscribers to not having access to a new, untried network.
Also, if history is an indication, the satellite companies tend to separate sports networks on to their own tiers and charge extra for them.
• What will it show?For starters in football season, it will
carry 35 Pac-12 football games that aren’t otherwise going to be shown by ESPN/ABC or Fox but don’t read that to mean it will all be second-rate match-ups. In fact, for seven of the 13 weeks of the football season, the Pac-12 networks will either have fi rst or second choice picks of games.
It also means that all viewers will be able to see all Pac-12 football games live.
Th e centerpiece of this month’s program-ming announcement will be the composite schedule outlining which football games will be shown by which networks.
For basketball season, the Pac-12 networks will have at least 120 men’s games, which averages out to just under nine games a week. Th e network is also planning national exposure for 50 women’s basketball games. Beyond that, the Pac-12 Arizona network will carry between 45 and 50 events each from UA and ASU in other sports, including Olympic sports including volleyball, swimming and track and fi eld. Not all of the UA and ASU events carried on the local regional will get exposure on the
national or other Pac-12 networks.• Will the coverage be Phoenix-based
and ASU-centered?It shouldn’t be. Th e headquarters and
main studios for the Pac-12 Network are in San Francisco and will be operated by a division of the Pac-12 called Pac-12 Enterprises.
• Who are the Pac-12 Network an-nouncers?
Th ey’re still working out those deals. About half the staff of 120 has been hired. Names that have been announced so far include Hall of Fame football player Ronnie Lott, Olympic gold medal swimmer Summer Sanders and former coach Rick Neuheisel.
• Pac-12 teams haven’t been getting the national exposure of other conferences by ESPN/ABC and Fox, does this mean they’ll be giving us even less coverage?
Considering ESPN and Fox have agreed to pay a combined $3 billion over the next 12 years, they shouldn’t.
• How much will the UA get from TV?Broken out evenly, the TV deals should
bring each school $20.8 million a year.
Faster, faster By July 1, Comcast will roll out even
faster broadband Internet speeds of 50 Mbps and 105 Mbps. Th at’s at least double the speed Comcast currently off ers in the Tucson region, which top out at 25 Mbps.
At 105 Mbps, customers should be able to download and watch a high-defi nition movie in about fi ve minutes, but also do other things faster, such as playing online interactive games, sending and receiving email attachments, shopping, and, of course, surfi ng the Web. Upload speeds are 15 amps and 20 amps.
Costs for the faster speeds will range from $99.95 per month as part of a bundle and up to $199.95 per month as a stand alone.
REMEMBERING TUCSONCareer with Hughes Aircraft brought Al Mueller to Tucson
He was destined to be an engineer, it was in his genes. In 1926, Albert H. J. “Al” Mueller was born in Van Nuys in California’s San Fernando Valley. He remembers attending parochial schools as a youngster. “Th ere were two classes in every room with 30 to 40 students in each school room. Th e nuns watched over us especially when we were paying attention to what was being said in the other class.”
He attended Jesuit-run Loyola High School in downtown Los Angeles. In 1943, with World War II being fought, Mueller wanted to get a student deferment so he left high school at the beginning of his senior year to enroll at Loyola University, but that only lasted one semester and he decided he wanted to go to California Institute of Technology.
Without the deferment, Mueller took advantage of the newly initiated V-12 Navy College Training Program. It came about due to growing concern from Navy brass they could be facing a shortage of commis-sioned offi cers as a result of the draft age being lowered to 18 in 1942. Th e V-12 program allowed men to attend colleges and serve in the reserves prior to being commis-sioned as offi cers. Th at allowed Mueller to attend California Institute of Technology, or Caltech as it’s often called.
After the 1945 atomic bombings of Hiroshima and Nagasaki in Japan ended the war, plans were made to phase out Caltech’s V-12 program by June the following year. With less than three years under his belt in the program, Mueller and others at Caltech were transferred to a Naval Reserve Offi cer Training Corps (ROTC) program at the University of Southern California, which required a commitment to serve two years following graduation. Mueller, who was still interested in getting a degree from Caltech didn’t like USC so he quit after one semester.
On the plus side, in his short time at USC he met Ardita Williams when he went to the campus Newman Center.
On the negative side, quitting ROTC meant he was sent to boot camp at the Great Lakes Naval Training Center near Chicago. From their he went for tours of duty on ships in the Pacifi c.
In April 1946, one of Mueller’s classmates told him he had talked to their ship’s executive offi cer who agreed to get the two of them an early discharge by June 1 so they could get back into Caltech. With the fi nancial benefi ts of the GI Bill, Mueller graduated in 1947 with a degree in electrical engineering.
After working for General Electric for a year, Mueller returned to Caltech to get a masters degree. “During that time, I decided that I wasn’t cut out to be a research and design engineer.”
He applied to Stanford University’s business graduate school and was accepted. After graduating with an MBA in 1951 Mueller and his new bride — he and Ardita
Williams had been married in December — made a honeymoon out of a six-week summer student tour of Europe.
Th en in September 1951, Mueller went to work for Hughes
Aircraft Company in Culver City, Calif. His fi rst job was in department administration and later he worked in systems engineering and program management. His responsibili-ties included seeking contracts and manag-ing funds, interfacing with government entities to buy equipment from the com-pany and responding to government requests for proposals.
Th e company, which had been develop-ing the AIM-4 Falcon air-to-air missile as a defense against potential threats from the Soviet Union, had decided it wanted to relocate so production would take place further inland, which was considered safer. In 1952, Hughes Aircraft began production of the Falcon, the U.S. Air Force’s fi rst opera-tional guided air-to-air missile, at its new plant south of Tucson International Airport.
In the 1960s, Mueller was named manager of some of Hughes’ missile programs. One client was the Swedish government and most of Mueller’s team moved to Sweden, but he commuted.
After E.J. Meyer, assistant manager for manufacturing at Hughes Tucson plant, died in the summer of 1966 Mueller was named to replace him. Th en in 1969, Mueller was transferred to work in program management at Hughes Ground Systems Group in Fullerton, Calif.
“We were teamed with Bath Ironworks in Maine and worked for one year on a proposal to design and build 30 destroyers complete with weapon systems. We lost the bid,” he said.
After that Mueller was named manager of the NASA Systems Department in Hughes Space Systems Group, also in California.
In 1972 when Lou Reasor retired as manager of Hughes Aircraft’s Tucson plant, Mueller was brought back as group vice president and manager of the manufacturing division of Hughes Aircraft’s Missile Systems Division. He held that position until 1984.
During this time, Hughes’ missile manufacturing was diversifying away from only manufacturing air-to-air guided missiles and had developed the TOW (Tube-launched, Optically-tracked, Wire) anti-tank missile for the Army and an air-to-ground missile dropped from A-10s called the Maverick (and used in the fi rst Gulf War) and an air-to-air missled called the Phoenix for the Navy.
“In 1984, we got into a dispute with the
government over quality and cost factors. Following that debacle, I was transferred back to Fullerton. I didn’t stop living in Tucson, I just commuted and remained as group vice president of the Hughes Ground Systems group. After a year, in 1985, I took early retirement. Coincidentally, at the same time, Hughes Aircraft was put up for sale,” Mueller recalled.
On June 5, 1985, General Motors won a secretive fi ve-month, sealed-bid auction against Boeing and another team. Th e purchase price was estimated at $5.2 billion. With GM’s fi nancial backing Hughes was later able to purchase the Navy surface to air Standard Missile business and the Tomahawk cruise missile business from General Dynamics.
In 1997, General Motors chose Raythe-on’s $9.6 billion dollar off er over a rival proposal from Northrop Grumman.
Meanwhile in his personal life, Mueller’s wife Ardita was diagnosed with lymphoma in 1981 and died a year later.
Tom Brown, one of the founders of Burr-Brown — which was sold and became part of Texas Instruments in 2000 — intro-duced Mueller to Jeannie Horner in 1983 and they were married a year later.
When Mueller retired they decided to have some fun and moved to Vienna where they had intended to stay for a year. Before
they had realized it, they had been there three years before returning to Tucson.
Th eir blended families include eight children and 16 grandchildren.
At age 85, Mueller still likes to play tennis. He says he belongs to a small “octogenarian group” at Tucson Country Club that includes Clark Duncan, Jack Lewis, Ed King, Bill Allin and, until “he hit 90,” lawyer Bill Lindamood.
“We’ve had some trouble keeping the 80 year olds going, so we have included some younger ones in our group,” Mueller admits.
Th e Muellers stay active in community organizations, involved in both Angel Charity for Children and Wright Flight, a program that involves 600 children who agree to goals including taking a course on the history of aviation.
Despite his career with Hughes Aircraft he never met his reclusive boss. He got plenty of calls and answered lots of ques-tions when Howard Hughes died in 1976 but that was it.
Do you have a historical Tucson story to
share? Contact Mary Levy Peachin at mary@
peachin.com. Her historical columns appear
the fi rst week of each month in Inside Tucson
Business.
MARY LEVY PEACHIN
Al and Jeannie Mueller
JUNE 1, 2012 25InsideTucsonBusiness.com
Th e 12th annual Summer Art Cruise takes place from 6-8 p.m. Saturday (June 2) at eight diff erent art galleries in the downtown area. Put on by the Central Tucson Gallery Association, the event off ers the opportunity to see lots of diff erent works, meet some artists and experience some of Tucson’s most exciting art spaces.
Participating galleries are Davis Dominguez, 154 E. Sixth St.; the Drawing Studio, 33 S. Sixth Ave.; Raices Taller, 218 E. Sixth St.; Conrad Wilde, 439 N. Sixth Ave.; Philabaum Gallery, 711 S. Sixth Ave.; Contreras Gallery, 110 E. Sixth St.; Obsid-ian Gallery, 410 N. Toole Ave.; and Sacred Machine, 245 E. Congress St.
Many of the shows will remain up for at least part of the summer.
More art“Flights of Fancy” is the name of an art
exhibit opening today at Tucson Botanical Gardens, 2150 N. Alvernon Way. Th e show features 70 diff erent birdhouses made by 30 artists. Th e exhibit runs through September, but an artist reception is set for 5-8 p.m. June 21, which is also third Th ursday of the month and a night when the gardens features live music and a chance to enjoy it in the cool evening hours.
MusicA series of three summer concerts at the Z
Mansion, 288 N. Church Ave., kicks off Tuesday (June 5) with a Tribute to Crosby, Stills, Nash and Young by the band Five Way Street.
Coming up July 13, Classic Country Jukebox features Robert Shaw and Kaci Bays, who has performed in Branson, Mo., fronting a six-piece band performing country songs from the 1920s through the early 1990s from Hank Williams to George Strait with a little Loretta Lynn and Dolly
Parton thrown in. And on Aug. 19, three days and 35 years after
the death of Elvis Presley, Robert Shaw and the Lonely Street Band will perform their tribute in Remember the King.
Tickets for each of the concerts in the Z Mansion courtyard is $23 or you can buy tickets to all three concerts for $60. Th ey’re also off ering a dinner-and-a-show combination for $45 each night or $120 for all three concert nights. Dinner is served at 6 p.m. and the concerts start at 7:30 p.m.
If you’re interested in the dinner option, the menu entré June 5 is cheddarburger meatloaf, July 13 it’s shredded barbecue chicken, and Aug. 19 it’s cod.
Th e concerts are being put on by Lonely Street Productions, buy tickets online at www.showclix.com/events/lonelystreet/ or call toll-free 1-(888)-718-4253.
FilmTh is weekend the highly anticipated
fairy tale fl ick “Snow White and the Huntsman” arrives at the multiplex. With an all-star cast including Kristen Stewart, Chris Hemsworth and Charlize Th eron, this special eff ects-laden, amped up re-vision-ing of a classic tale looks like a lot of fun. Also on screens this weekend is the indie fi lm “Th e Sound of My Voice,” a riveting documentary about a fi lmmaker’s attempt to infi ltrate a mysterious cult that was one of my favorites at the 2010 Sundance Film Festival. It’s playing at the Loft Cinema, 3233 E. Speedway.
Contact Herb Stratford at herb@
ArtsandCultureGuy.com. Stratford teaches
Arts Management at the University of Arizona.
He appears weekly in Inside Tucson Business.
ARTS & CULTURE
OUT OF THE OFFICEMEALS & ENTERTAINMENT
It’s June. It’s hot. And the summertime specials are on at Tucson restaurants.
Cinco de SummerEl Charro Cafés have brought
back their Cinco de Summer menu. Th is summer the menu includes three types of chimi-changas, because Tucson and El Charro lay claim to being the home of the deep-fried concoc-tion. Th e claim garnered renewed attention of foods born in the U.S. in the May 27 issue of Parade magazine. It explained how a stuff ed burrito fell into a deep fryer prompting proprietor Monica Flin to yell out something that’s been changed to chimichanga, more or less the Spanish equivalent to “thingamajig.”
Anyway, the summer $5 specials are for chimichangas fi lled with either bean and green chile, chicken, or green chile and pork. Th e special menu also features a large Sonoran hot dog or a Charro burger topped with grilled onions and menonita cheese. Tableside-made guacamole and a dessert special of fl an are also $5. Drink specials for $5 include sangria and strawberry-mint mojito.
Th e specials run through Sept. 30.• El Charro Café — www.elcharrocafe.
com — locations: 311 N. Court Ave. (520) 622-1922; 6310 E. Broadway in El Mercado (520) 745-1922; 7725 N. Oracle Road in Oracle Crossings, Oro Valley, (520) 229-1922; 6910 E. Sunrise Drive in Ventana Village (520) 514-1922; and 15920 S. Rancho Sahuarita, Sahuarita, (520) 325-1922
Summer tour DowntownChef Janos Wilder’s Downtown Kitchen +
Cocktails goes globetrotting this summer with menus featuring cuisines from fi ve cuisine destinations, with Shanghai being the fi rst stop.
Th rough June 18, the dinner menu features red cooked pork with noodles, soft shell crabs with chile scallion ginger oil and
thick wheat noodles with beef. Th ere are also lunch and appetizers specials.
Subsequent stops on the summer passport tour are Athens, Greece, June 19-July 9; Valencia, Spain, July 10-30; Rio De Janiero, Brazil, July 31-Aug. 20; and Bangkok, Th ailand, Aug. 21-Sept. 16.
Diff erent each day Acacia is mixing it up and keeping it fresh
this summer off ering a diff erent special each day of the week (Tuesdays through Sundays, because the restaurant is closed on Mondays for the summer).
Th ere’s “Taco Tuesday,” all you can eat tacos, either “Cadillac” (chile, garlic and lime marinated beef sirloin) or mahi, with a beer served for $10 (bar only); “Wacky Wednesday” with diff erent specials each week; “Th irsty Th ursday” with $2 off all drinks and half-priced bottles of selected wines; “Paella for two” on Fridays with two glasses of sangria for $30, a “Saturday fi sh fry” for $12 per person and an early bird spe-cial of a three-course prix fi xe menu for $16.95 served from 4-6 p.m. Th e Tuesday special is good in the bar only but all the others are also available in the dining room.
• Acacia Real Food + Cocktails, 3001 E. Skyline Drive in Gallery Row — www.acaciatuc-son.com — (520) 232-0101
Contact Michael Luria at mjluria@
gmail.com. Meals & Entertainment appears
weekly in Inside Tucson Business.
Summer is here, and so are the restaurant specials
MICHAEL LURIA HERB STRATFORD
Cruise 8 art galleries in two hours Saturday night
Now your business can tell Inside Tucson Business about new hires, promotions and special awards online. Go to www.insidetucsonbusiness.com and click the “People in Action” button. From there you can submit your announcement and we’ll publish it online and in print.
{TELL US ONLINE}
PEOPLE IN ACTIONPROMOTIONS
Mutual of Omaha Bank has promoted Kevin Halloran to state president for Arizona. In his new role, Halloran is responsible for leading the strategic growth and management of Mutual of Omaha Bank’s statewide operations in Arizona, including 10 full-service community bank locations throughout metropolitan Phoenix and Tucson. Halloran has nearly 30
years of banking experience and has served as senior vice president and senior commercial bank manager for Mutual of Omaha Bank in Arizona since 2008. Halloran earned his bachelor’s degree in fi nance from Indiana University, and is a graduate of the University of Oklahoma Banking School and the Executive Leadership Coaching Program.
KEVIN HALLARAN MICHAEL TRUEBA
ELECTIONS
Kim Macdonald of Farhang & Medcoff, PLLC,
has been elected secretary of ALA Tucson Old Pueblo Chapter. Her term is for one year.
Jeanine Greene of Bogutz & Gordon PC, has been elected treasurer of ALA Tucson Old Pueblo
Chapter. Her term is for one year.
Sally Miller of DeConcini, McDonald,
Yetwin & Lacy, P.C., has been elected vice president of the ALA Tucson Old Pueblo Chapter. Her term is for one year.
APPOINTMENTS
Michael Trueba of Bank of Tucson has been appointed by Gov. Jan Brewer to the Arizona Board of Appraisal. Trueba has 36 years of banking experience and holds a board position on the
Southern Arizona CCIM Chapter
AWARDS
Modular Mining Systems, Inc. has announced that company co-founder and chairman James White, Ph.D., P.E., is the recipient of Komatsu Ltd.’s Individual Presidential Award for 2012. White’s vision, leadership, and intrinsic understanding of the needs of the modern mining industry, were key factors in his being selected.
26 JUNE 1, 2012 INSIDE TUCSON BUSINESS
TUCSON STOCK EXCHANGE
Stock market quotations of some publicly traded companies doing business in Southern Arizona
Company Name Symbol May 30 May 23 Change52-Week
Low52-Week
HighTucson companiesApplied Energetics Inc AERG.OB 0.05 0.05 0.00 0.04 0.52CDEX Inc CEXIQ.OB 0.01 0.01 0.00 0.01 0.10Providence Service Corp PRSC 13.21 13.02 0.19 8.35 15.94UniSource Energy Corp (Tucson Electric Power) UNS 37.03 36.60 0.43 32.96 39.25
*Quotes in U.S. dollars, except Bombardier is Canadian dollars.
FINANCEYOUR MONEY
401(k) rollover? An annuity that captures gains, not losses
We have our 401(k)s in the market — stocks, bonds, mutual funds — for one of three reasons:
1. We love the market.2. We are not given any other options.3. We don’t know a better way to go.Th e market provides opportunities for
gains but also for big losses, as we learned in 2008. For safety, we can use certifi cates of deposits or government bonds but in those your money is positioned either for opportunity or safety, but not both on the same dollar at the same time.
Th ere is a way to have safety and opportunity on the same dollar at the same time. Filling the gap between the stock market and a bank is the fi xed indexed annuity (FIA).
Capturing the market ‘up’ When the market rises, the FIA delivers
interest. When the market declines, instead of losing money, it delivers zero percent interest. In this case “zero” is a “hero” because you’re not losing money as would have if invested in stocks or mutual funds.
A study by the Wharton Financial Institutions Center at the University of Pennsylvania found that FIAs credited an average of 8 percent since their inception more than 14 years ago.
FIAs typically do not allow for 100 percent of the gain, but the average investor doesn’t often get all the gain anyway. Dalbar, a Boston-based market research fi rm, found that an average equity fund investment from 1990 to 2009 earned 3.17 percent, or a little over one-third of the 8.2 percent gain the Standard & Poor 500 averaged over the same time frame. Since 1995, many FIAs have credited higher interest.
Liquidity FIAs are not 100 percent liquid, the
investment period can range from 5-16 years and they carry surrender charges. Consequently, an FIA is not a place to park money that might be needed for emergen-cies or for short-term savings. However, FIAs are designed for retirement savings. Most companies allow up to 10 percent free withdrawals per year after the fi rst year and there are some FIAs that allow for 100 percent liquidity from day one. Most brokers recommend you not remove any more than 4 percent per year so as not to run out of money.
Bonuses and income for life
One of the most popular features of an FIA is the lifetime income rider, which has a fee of less than 1 percent (the only
fee associated with most FIAs). Th e rider provides a guaranteed annual rate of growth (currently up to 7 percent) as well as guaranteed income for life. For example, you can rollover your 401(k) into an FIA, have a 6 to 12 percent bonus added to your premium and grow it at 7 percent per year and turn it into a lifetime income stream at the age of your choice.
FIAs are not variable annuities, which is a securities product that exposes you to market risk and has fees such as mortality and expense fees, administrative fees, fund fees and rider fees. Th ese fees can add up to more than 4 percent. Additionally, some brokers charge management fees on variable annuities.
Individual Retirement Accounts (IRAs), by law, can only be owned by one person. If a 401(k) is your choice for your retirement funds and you follow your broker’s advice not to withdraw more than 4 percent annually to live on, you still have no way of knowing if the account will grow or decline due to market volatility.
If you rollover a 401(k) into an FIA IRA, you may take your income on a joint basis so even if a spouse dies, the survivor will continue to receive income for the rest of his or her life. Even if you totally deplete the balance in your annuity, your income continues for life. Th e withdrawals are based upon a percentage of value but you will know, up front, exactly how much you will be able to draw for the rest of your and your spouse’s lives.
A fi xed indexed annuity may not be the right thing for you but I encourage you to explore your options so you can make informed decisions. Speak to a licensed insurance agent specializing in retirement planning to help you make the right decision for you and your spouse.
Contact Susan L. Moore Vault, president
of Moore Financial Strategies, at susan@
moorefs.com or (520) 296-4464. She also hosts
“Safe Money Strategies” from 6-6:30 a.m.
Saturdays on KNST 97.1-FM/790-AM.
SUSAN L. MOORE VAULT
JUNE 1, 2012 27InsideTucsonBusiness.com
INSIDE REAL ESTATE & CONSTRUCTION
By Roger YohemInside Tucson Business
Although it’s only June, the holiday rush is on at the former Mervyn’s department store, 5545 E. Broadway.
“Th e push is on, we are on a fast track. Some tenants want to open later this year in time for holiday shopping,” said Tommy Roof, vice president of W.E. O’Neil Con-struction Company. “We started May 23 and crews worked Saturday and Memorial Day.”
Four retailers, anchored by Hobby Lob-by, will move onto the 7.4-acre site at the northeast corner of East Broadway and Craycroft Road. Th e 81,000 square-foot store has been vacant since the Mervyn’s chain was liquidated and closed in late 2008. A Stein Mart store also will be a major tenant.
Also on site, demolition of a vacant tire store was on schedule to be fi nished today (June 1). It will be replaced with a 14,500 square foot retail pad for tenants including Mattress Firm and Vitamin Shoppe.
O’Neil Construction, 710 S. Campbell Ave., is the general contractor for property owner Beneson Capital Partners, New York.
Inside, Roof said crews are working on environmental abatement. Th at should be done by mid-June. Meanwhile outside, workers are busy “scraping up the old pave-ment and removing light post pillars,” Roof said.
Once the building’s interior has been cleaned, renovation crews will move in and the pace of construction will increase. At that time, Roof said 50 to 60 workers will be on-site daily.
For the entire project, O’Neil will use 30 subcontractors, most of them local compa-nies. Overall, that will employ 150 to 175 workers.
AzBizCon trade show All 130 exhibit spaces have been sold
for next week’s AzBizCon business-to-busi-ness trade show at Casino del Sol, 5655 W. Valencia Road.
Th e full name of the event Jan. 8 and 9 is the AzBizCom Business Technology & Con-struction Expo and it’s sponsored by the Al-liance of Construction Trades and the Tuc-
THE PULSE: TUCSON REAL ESTATE
5/21/2012 5/14/2012
Median Price $133,500 $152,000Active Listings 4,178 4,274New Listings 325 352Pending Sales 421 430Homes Closed 252 257Source: Long Realty Research Center
WEEKLY MORTGAGE RATES
Program Current Last WeekOne
Year Ago12 Month
High12 Month
Low
30 YEAR 3.75% 4.00%APR 3.75% 4.00%APR 4.95% 4.95% 3.75%
15 YEAR 3.13% 3.25%APR 3.13% 3.375% APR 4.22% 4.22% 3.13%
3/1 ARM 2.88% 3.25%APR 2.88% 3.25% APRThe above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000Information provided by Randy Hotchkiss National Certifi ed Mortgage Consultant (CMC), Hotchkiss Financial Inc. P.O. Box 43712 Tucson, AZ 85733. (520) 324-0000. MB #0905432. Rates are subject to change without notice based upon market conditions.
5/29/2012
On May 23, redevelopment of the vacant Mervyn’s parcel began, focusing for now on ripping out the entire parking lot (top) and razing an old tire store that has been vacant for 20 years (below).
son Metro Chamber. It will run from 10 a.m.-7 p.m. both days.
“We’ll have a little bit of everything for business and property owners,” said Jim Ku-liesh, president of the Alliance of Construc-tion Trades.
Th e event features exhibits and seminars
in three categories: residential and com-mercial property, construction industry and business technology. Exhibitors include specialty trade contractors, material suppli-ers, heavy equipment and rental compa-nies, computers, software, offi ce machines and business consultants.
Admission is $7. Details are online at www.AzBizCon.com/ .
Sales and leases• Stone & Kelso LLC purchased 36,513
square feet at 2619-2651 N. Stone Ave. for $689,000 from Ervin and Beverly Martens, represented by Robert Glaser, Paul Hooker and Allan Mendelsberg, Picor Commercial Real Estate Services. Th e buyer was repre-sented by Frances Ballou-Horner, Centra Realty.
• Jacobs Field Services leased 8,823 square feet at 333 E. Wetmore Road from Brown and Caldwell. Th e transaction was handled by Stephen Cohen, Russell Hall, and Tom Nieman, Picor Commercial Real Estate Services; Eric Olofson, Cushman Wakefi eld; and Dean Panfi li, Cassidy Turley.
• OCG LLC, doing business as Chuy’s Mes-quite Broiler, leased a 5,500-square-foot free-standing restaurant at 7585 S. Houghton Road from Harco Properties LLC, represented by Pete Villaescusa and Jesse Peron, CBRE. Da-vid Dutson, CBRE, represented the tenant.
• Adora Bridal leased a 2,804 square feet space at Crossroads Festival on the north-east corner of Grant and Swan roads, from Larsen Baker, self-represented by Andy Seleznov. Th e tenant was represented by Rob Gillette, Gillette Commercial Inc.
• Gymboree Retail Stores leased 2,500 square feet at Tucson Spectrum, on the southwest corner of Interstate 19 and West Irvington Road, from Barclay Creswin Tuc-son Spectrum, represented by Jim Gardner, the Barclay Group. Nancy McClure, CBRE, represented the tenant.
• Eclipse Clinical Research leased 2,468 square feet 1704 W. Anklam Drive from Tor-ralba Properties LLC, represented by Tom Knox, Picor. Th e tenant was represented by Bruce Suppes, CBRE.
• HEF LLC leased 1,818 square feet at 2452 N. Campbell Ave. from Aysel Leyla Busche, represented by Jean Barclay of Ox-ford Realty Advisors.
• E Systems Management LLC leased 1,800 square feet at 9630 E. 22nd St. from Al-lied Trading & Transacting Corporation. Th e tenant was represented by Nancy Mc-Clure of CBRE.
• Help-U-Sell Real Estate leased 1,800 square feet at 8245 N Silverbell Road, Suite 167, from CJR at Continental Ranch LLC. Th e landlord was represented by David Car-roll of Romano Real Estate.
• Eko Market Place leased 1,800 square feet at 1835 S. Alvernon, Suite 204 and 205 from Presson Midpoint LLC, represented by Rob Glaser and Paul Hooker with Picor.
Renovation of old Mervyn’s site on fast-track for holidays
28 JUNE 1, 2012 INSIDE TUCSON BUSINESS
You don’t suppose that maybe we’re the reason Arizona has perceptions problems? A lot of us have been trying to point the fi nger at others, but after reading some of the national accounts of Arizona Secretary of State Ken Bennett’s quest last month to verify President Obama’s birth in Hawaii, I’m worried that maybe we ought to be pointing to the refl ection in the mirror.
Hawaii verifi ed that it has Obama’s birth certifi cate and Bennett issued a statement saying, “I consider the matter closed.”
But good grief, was there anybody without time to waste on their hands still trying prove otherwise? Oh yes, there’s Mari-copa County Sheriff Joe Arpaio, who is the target of a U.S. Department of Justice lawsuit over discriminatory treatment of Hispanics in his jurisdiction. What does it say when the birther argument is the only thing Arpaio could come up with to counter the legal scrutiny of his offi ce?
Arpaio told Phoenix TV station KNXV he doesn’t care how much an investigation of Obama’s birth certifi cate costs. “If I have to send 10 deputies down there (to Hawaii) for security reasons, I’ll do it,” he said.
But that’s politics. Since when did anyone take political shenanigans as fact? You’d think Maricopa County taxpayers might be concerned over how much money he’s willing to spend on this. Th en again, if his taxpayers think the biggest law enforcement threat to their safety is President Obama’s birth certifi cate, they elected their guy.
Bennett denied that he himself was a birther when he set out to verify Obama’s Hawaii birth certifi cate. He said he was responding to the more than 1,200 emails he had received from constituents demanding he check into the record. Bennett said Obama’s name might not qualify to appear on Arizona ballots if Hawaii couldn’t verify his birth certifi cate.
I easily get 1,200 emails in a week and most of them are worthless to me, mostly because they aren’t pertinent to what we do as a regional business publication. Some are political rants. Either way, it’s easy to fi gure out and to get rid of those I don’t need. Bennett couldn’t do that?
What’s more worrisome is that Republican political candi-dates in Arizona have determined their best chances for getting elected lies in running as far right as they can on the political spectrum.
Bennett, who is a Republican, already has formed an exploratory committee to run for governor in 2014. He isn’t alone in that regard. Until now, though, Bennett had not done anything that made him appear to be off to an extreme. In Prescott where he lives, he’s a business leader and served on the Prescott Chamber of Commerce and Prescott City Council. He was in the state Senate from 1999 until he was term-limited out at the end of 2006. He was appointed Secretary of State replac-ing Jan Brewer when she was elevated to governor in 2009 and a year later won election to the offi ce.
But this Obama birth certifi cate matter was an embarrass-ment for Arizona. If Bennett and other politicians are rewarded for this behavior we are the ones to blame.
Go out, go downtown, it’s easy Businesses in downtown Tucson are hurting. So are
businesses along Fourth Avenue. Th at is usually the case in summer but compounding the problems this year is construction of Sun Link, the 3.9-mile modern streetcar line.
Two days don’t go by and there’s another report about something going on with the construction and almost always it has to do with a street that’s closed and a new detour.
While trying to be well-meaning and helpful, we’d argue these reports amount to TMI — too much information. Th e block-by-block descriptions really only pertain to limits in certain areas, but leave people with the impression that downtown Tucson is a torn-up mess that should be avoided.
It’s not. In the overall scheme of things, there might be some instances where a person might have to walk a block out of their way, but that’s about it.
Last month’s annual fundraiser, “Th e Great Masquer-ade Escapade, the Ball to End All” put on by the Centurions, is a prime example of how to overcome this mentality.
Despite warnings that the Centurions shouldn’t do the event downtown “because it’s all torn up,” event chairman Bill Hussey said they decided to stage it downtown for a second year.
“Most of our patrons aren’t regular downtown goers but we had such great response to having the event downtown last year, we really wanted to do it again downtown this year,” Hussey told us.
Not only were the Centurions facing the unknown challenge from the construction, they boldly raised the ticket price this year, which also could have hurt attendance.
In the end, attendance was up 500 to just less than 5,000 this year. Th e 20,000 parking spaces that are
available downtown were more than enough to handle the attendees and another 300 volunteers.
Issues associated with the streetcar construction were a non-issue and, in the end, the Centurions’ raised more money for Carondelet St. Mary’s Hospital.
“Our event was even more successful than last year. Th e sky wasn’t falling downtown,” Hussey said, adding “Th ere is a vibe downtown that you can’t fi nd anywhere else.”
Some other downtown special events haven’t done as well since construction for the streetcar began. And many businesses say they’re seeing fewer customers.
Along Fourth Avenue where shopping can be more of a spur-of-the-moment decision and immediate access can be crucial, businesses feel their potential customers either aren’t making an eff ort or see it as too much bother to navigate around the construction. Retailers there are trying to counteract that with a discount card targeting customers willing to brave the construction.
Downtown is still quite accessible. In fact, the only issue is for traffi c coming in from the east on Broadway that can no longer jog over to Congress Street because it’s closed. But the reality is there’s been a traffi c issue with the Broadway entrance since it was redesigned as part of the new Fourth Avenue underpass that opened in 2009. What’s happening now is no diff erent and, in fact, parking in the new Centro Garage at Fourth Avenue is easy and will save you a lot of hassle.
Otherwise, coming from the north or south on either Stone or Sixth avenues is as easy as from the west, off Interstate 10, on Congress and Broadway.
Th e fact is downtown Tucson is open. Th e vibe is fun once you get there. And it’s not diffi cult. Don’t listen to the reports, just go and have fun.
JUNE 1, 2012 29InsideTucsonBusiness.com
OPINIONWAKE UP, TUCSON
Time is now to write next chapter for Tucson tourismOn Wednesday (May 30), our friends at Gray
Line, Marriott University Park Hotel and SKAL International threw a Welcome to Tucson party for new VisitTucson CEO Brent DeRaad. It was obvious that the more than 150 attendees were eager to begin co-authoring the next chapter on our region’s tourism industry.
As two guys who were involved with the change in the previous leadership team at the Metropolitan Tucson Convention and Visitors Bureau (MTCVB), we are here to say it’s time to put away the past and start cranking on the future. We are fully behind DeRaad and his team. We are already actively participating with the organization. We encourage you to do the same.
Tucson lured DeRaad from Scottsdale. He went from a 500-pound tourism gorilla to an organization in Baja Arizona that got lit up in a Pima County performance audit.
How do we help him? Over the past few years, governmental
jurisdictions have reduced or refused funding MTCVB due to concerns with the previous leadership.
Mark the tape, Chris and Joe are going to say something nice about Pima County. Th e county, which did the performance audit, kept its funding levels unchanged. Th e audit commission is still working with the MTCVB’s executive committee to ensure that audit recommendations are taking place and, to
our knowledge, that is well underway.
Th e City of Tucson’s audit, which was an accounting audit, gave the previous MTCVB leadership a passing grade. But in typical fashion, despite the nicer review, the city decided to cut funding to the MTCVB. City offi cials have a tough time prioritizing.
Th e county is putting 50 percent of its bed tax revenue in the MTCVB while the the city is investing only about 28
percent. Instead, the city is putting the rest of the money toward fi xing the tenement known as the Tucson Convention Center, arts funding and that black hole called the general fund.
We wouldn’t blame the county for being a
little miff ed that it is bearing the brunt of the burden of trying to revitalize the important tourism industry.
DeRaad’s hiring committee included Tucson City Councilwoman Shirley Scott and County Supervisor Sharon Bronson, both Democrats. We can only assume their presence on the MTCVB board means they want the very best for the organization. But what does it say when your part of a process of hiring the best person possible to do a job but then failing to fully fund the organization you’ve just hired him to run?
It will be in the best interest of VisitTucson if these two electeds — with more than 30 years in offi ce, combined — would convince the rest of the Democrats on the city council to do the right thing and fund our tourism marketing organization. Th ere are more than 21,000 people in the Tucson region employed in the tourism industry. Funding tourism marketing would be a step toward fulfi lling that old campaign promise to “help working families.”
It’s also time for the Southern Arizona Lodging and Resort Association (SALARA) to make certain those 21,000 people they employ know exactly which council member and/or supervisor represents them. Th en, make sure they’re registered to vote.
Imagine what would happen if a city council
member were to be presented with worker/voter data and a SALARA representative were able to say, “I am here representing the 3,746 registered voters who work in tourism and we would like you to vote to use the taxes we collect to fund the marketing of our industry. Is your re-election coming up next year?”
Th at would be a conversation starter. Any organization that goes through change
needs support along with new blood. Th is is the time to fi nd out what MTCVB committees you can serve on. Th e board is made up of some good people but it needs some new blood. Incoming board chair is Michael Luria, with his experience in the restaurant industry and now as executive director of Children’s Museum Tucson, he has the knowledge that’s needed. Reach out to him.
Tourism is Tucson’s growth industry right now. It doesn’t need an economic develop-ment organization to sponsor a drinking junket to San Diego. It’s clean and it’s already here. It’s a pretty simply formula: create jobs, raise tax revenues and make money for business owners. Wild stuff , huh?
Contact Joe Higgins and Chris DeSimone at [email protected]. Th ey host “Wake Up Tucson,” 6-8 a.m. weekdays on Th e Voice KVOI 1030-AM. Th eir blog is at www.TucsonChoices.com.
SPEAKING OUT
Elder abuse in Arizona is a serious problem and growing First of two parts.
When Tom Horne was elected state Attorney General in 2010, he identifi ed protecting older Arizonans from elder abuse and fraud as a priority. He established Taskforce Against Senior Abuse (TASA) to provide a direct line of communication for anyone to contact his offi ce about elder abuse.
TASA’s goal is to create legislation to protect the elderly. This includes requiring licensing for in-home caregivers. Right now there are no fingerprint or background check requirements for persons providing non-medical care.
TASA emphasizes the need to identify elder abuse cases that can be prosecuted. The taskforce is also charged with raising community awareness of the problem. Another priority is to identify needs and concerns of senior citizens in communities around the state.
Th ere is an active partnership in Pima County with the Attorney General’s Health Care Fraud and Abuse section. A prosecutor and a special investigative agent work directly with the Tucson Police Department and the Pima County Sheriff ’s Offi ce to investigate and prosecute elder abuse cases.
The Pima County Sheriff’s Office defines elder abuse: “when someone hurts an elderly person physically, emotionally, or through a lack
of proper care. This is a serious crime.”
A caregiver may deprive an older person of food, water, medication, medical services, shelter, cooling, heating or other services. It is also possible that seniors may suffer from self neglect.
Scams are some of the most common forms of elder abuse; this occurs when there is “illegal or improper use of a vulnerable or incapaci-tated adult’s fi nancial resources for another person’s profi t or gain.” Scammers often see older people as easy targets.
Elder abuse is increasing. According to the Arizona Attorney General’s offi ce, it is estimated that by 2020, one in four Arizonans will be over 60.
Elderly victims of mistreatment are mostly over 75 years of age and two-thirds of them are females. They may have one or more physical or mental impairments and are widowed, divorced, or socially isolated. They are often inexperienced in handling financial matters. The abused usually live with their abuser, or if victims do live
alone, they fear being institutionalized. People who abuse and exploit the elderly do
not discriminate, according to TASA. Their abuse affects “every segment of society, all ethnic and social backgrounds, and both men and women.“
Th ere are many possible causes of elder abuse. Th e elderly person may be in poor health. Caregivers may not have the strength or the skills to take care of an elderly person, which can be very stressful.
Th e same external stressors that cause child or spousal abuse can also cause elder abuse: fi nancial problems, job stress, family problems, for example. Experts believe that “social isolation of the frail elderly is a possible contributing cause of abuse; isolation can also be a factor for potential mistreatment.”
If violence is learned as an acceptable behavior in childhood, that child (now in the role of caregiver) may simply return the abuse they suff ered. Caregivers who have problems with alcoholism, substance abuse, or behavioral health problems are more likely to become an abuser than those who do not have these problems.
Th e Attorney General’s offi ce estimates that only one in every fourteen cases of elder abuse is reported.
Th e elderly person may fear retaliation
from the abuser. Seniors can feel that no one will believe them, and they could be separated from the family and institutionalized. Th ey often fear loneliness or are afraid of the criminal justice system.
Also, a senior adult may feel guilt and shame that his/her children are responsible for the mistreatment. If the person is isolated, he/she may not know where or how to seek help.
Some victims blame themselves for what is happening, or they tolerate and accept the mistreatment. Strokes, dementia and mental impairments may cause memory loss, so the abused person cannot communicate eff ectively.
Reports of abuse, neglect, or exploitation should be made to the Adult Protective Services Hotline toll-free at 1-877-767-2385 or to local law enforcement agencies. Reports can also be made online — at www.azdes.gov/reportadultabuse . Reporting abuse gives victims the chance to receive help and reduce the risk of future abuse.
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
JOE HIGGINS
CHRIS DeSIMONE
30 JUNE 1, 2012 INSIDE TUCSON BUSINESS
Phone: (520) 295-4201Fax: (520) 295-40713280 E. Hemisphere Loop, #180Tucson, AZ 85706-5027 Internet: www.azbiz.com
An attorney’s role includes giving back to the community “I will remember that, in addition to
commitment to my client’s cause, my responsi-bilities as a lawyer include a devotion to the public good.”
— State Bar of Arizona – Lawyer’s Creed of Professionalism
When attorneys undertake the educational rigors of law school, the focus of their curri-culum is on the law and its many intricacies. After graduating and passing the Bar exam, they emerge, take the Oath of Admission into the State Bar and they’re off to the races.
Th e Oath of Admission stresses the attorneys’ respect and commitment to the letter of the law, to the judiciar and to their clients. Th e fi nal part of the oath states: “I will at all times faithfully and diligently adhere to the rules of professional responsibility and a lawyer’s creed of professionalism of the State Bar of Arizona.”
If the Oath of Admission is the “mission” of the profession, the Creed of Professionalism is the “vision,” outlining the structure upon which Arizona attorneys frame their profession. Within the creed is the charge for lawyers to make a commitment to a greater community — the public good.
From television shows to novels, the layperson gets to see a part of the practice side of law – the “action” side. (Showing what most attorneys do, most of the time, would fail miserably as comedy or drama, for no one wants to see
someone like me talking on the phone, drafting documents, or researching the law.) But, in addition to spending time performing routine tasks, most attorneys fulfi ll that last mandate in the Creed—“devotion to the public good” on a more personal and private basis.
In Tucson we have somewhere in the neighborhood of 2,800 nonprofi ts and foundations. We have schools and universities, youth sports teams, arts organizations, groups devoted to managing and solving the many problems faced by those less fortunate, hundreds of places of worship and one million people in our metropolitan area. Th ese entities all need assistance with fund development
(everybody needs more money), but they also need help with governance matters, strategic planning and the myriad issues that face any organization.
Attorneys are trained communicators, but they are also skilled listeners and problem solvers. Many of them deal with and help people solve problems every day between 8 and 5. Some attorneys are very familiar with nonprofi t issues like fund development, governance and strategic planning, but even those who aren’t, because of their communication and problem solving skills, off er much to our community.
No matter where you turn, you will see members of the legal profession hammering nails, feeding the disadvantaged, working with the illiterate and undereducated, running to raise dollars to fund research for diseases, or supporting the arts with all of its diversities. And rare is the organization that does not have within its leadership structure one — and often several — attorneys. Attorneys are tutoring, coaching, mentoring, advising and leading those entities.
Within law fi rms, public and corporate law offi ces, thousands of paraprofessionals and other employees pitch in to improve and move
our city and county forward. Th e motivation to volunteer and donate time and treasure does not rest in a creed, but rather in our local culture of philanthropy. But the creed reminds those of us in the legal profession that we are fortunate to have the resources to support our commu-nity and to lead.
Th is piece focuses on attorneys and the legal profession. I would be remiss, however, if I did not salute the many people in our community, from all walks of life, who share their time, talent and treasure. While attorneys are obliged by the creed, the creed simply refl ects the same set of principles and values that motivates so many, from all walks of life, to roll up their sleeves, pitch in and share what they have with others.
We are all blessed in many ways! Th ose of us who reside in Tucson are blessed by, among other things, the fact that we live in a commu-nity full of generous people. As an attorney, I am proud of my profession and the fact that we play a signifi cant role in helping others by fulfi lling our commitment to our community.
Mark Rubin is a shareholder with the Law
Firm of Mesch, Clark & Rothschild.
MARK RUBIN
Yes, plenty hot . . . . 52% No, I can dealwith a few extradegrees . . . . . . . . . . . . . . 11%Hahaha, not funny . .17%
Is it hot enough for you yet?
InsideTucsonBusiness.comI
Next week’s poll: Do you plan to support downtown businesses during streetcar construction?
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• Letters to the editor — Opinions on business-related issues or coverage of issues by Inside Tucson Business are encouraged and will be published. Submit letters to the editor via email at [email protected]. Letters also may be mailed to Letters to the editor, Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087. Letters must include the writer’s name and telephone number. Inside Tucson Business reserves the right to edit and may not print all letters that are received.
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Analysis was skewedin park rankings TO: The EditorFROM: C.H. Huckelberry, Pima County administratorRE: ‘Tucson ranks near bottom on analysis of parks,’ May 25 issue
While there is no right or wrong way to assess the part systems of cities, the Trust
for Public Land’s analysis provides a skewed picture of Tucson’s park system. Th e analysis ranked Tucson 31 and Phoenix 16. Tucson actually beat Phoenix for playgrounds per 10,000 residents, beat Phoenix on percentage of residents within one half mile of a park, and came close in per resident park spending.
However, it was the acres of parkland within a city’s legal boundaries that was weighted the heaviest. Phoenix has moun-tain ranges inside its city limits, which the city has made into parks, such as South
Mountain Park. We diff er geographically in that our mounts surround the city of Tucson. We also diff er in that our mountain parks are just outside the Tucson city limits.
Tucson Mountain Park runs along the city of Tucson’s western boundary for several miles and is heavily used by city residents. A more realistic analysis would use the met-ropolitan area as a boundary, instead of the city’s legal limits. In that case, Tucson would likely move above Phoenix in the rankings and much closer to the top of the list.
LETTERS
JUNE 1, 2012 31InsideTucsonBusiness.com
KeriSilvyn
WomanOf Infl uence
2010
RuthBrinkley
WomanOf Infl uence
2009
JONI Condit
WomanOf Infl uence
2011
KerstinBlock
WomanOf Infl uence
2007
Call for Nominations
Do you know or are you a women in Tucson and Southern Arizona that has made a
difference in their careers or community?
Nominations are open until midnight
Wednesday, July 4, 2012
To nominate go to www.insidetucsonbusiness.com
and click on the Women of Infl uence icon
Honorees will be recognized in the October 26, 2012 issue of Inside Tucson Business with
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