Macy's ready for online sales tax Company invests millions in online fulfillment center Page 19 Innovation university UA honors student, faculty achievements Page 4 Your Weekly Business Journal for the Tucson Metro Area WWW.INSIDETUCSONBUSINESS.COM • APRIL 5, 2013 • VOL. 22, NO. 45 • $1 KEEPING COOL IN THE SUN PAGE 3 SunDanzer leads the way on solar- powered refrigeration Patrick McNamara Company plans to build 21+ turbine windfarm east of Tucson By Carol Broeder Arizona Range News In what would be a first in South- ern Arizona, a Texas-based company is looking to build a windfarm of 21 to 28 turbine generators standing up to 487 feet tall with blade diameters of 191½-feet, all of which would be capa- ble of producing 51 megawatts of elec- tricity that would be sold to Tucson Electric Power. e site is on desert land about 21 miles west of Willcox. Torch Renewable Energy LLC has submitted a special use application for development of the Red Horse 2 Wind Farm that is scheduled to be heard by Cochise County Planning and Zoning Commission on Wednes- day (April 10). e electricity generated from the project would be enough to power about 11,000 homes annually. Torch Renewable Energy’s Glenn Holliday, who is based in Houston, said his company will invest between $100 million and $125 million in infra- structure for the project. Construction is expected to begin in mid-December this year and com- mercial operations should commence by the end of 2014. “e wind farm will create electric- ity with zero emissions and zero wa- ter usage in an arid region,” Holliday said. e project has already gained unanimous support from the Willcox City Council. Jeff Stoddard, with the Willcox Development Services De- partment, recommended the coun- cil approve the plant’s construction for the approximately 50 construc- tion jobs and for the possibility that it would “bring other industries related to this project to the Willcox area in the near future.” Holliday said his company is work- ing closely with Arizona Game and Fish and the U.S. Fish and Wildlife Service to ensure proper study meth- ods are utilized. “A complete cultural resource study will be completed in the next few months and the final turbine array will be based on information attained from archaeological and environmen- tal studies,” he said. Holliday indicated “the impact to neighboring property owners will be minimal,” with the majority of the land surrounding the site owned by the state and “sparsely populated.” “e nearest property owner to the west of the project is more than two miles from the farthest west wind tur- bine,” said Holiday, and they are nego- tiating to continue using the land for cattle grazing. Homer Hansen, chair of a bird- watching event called Wings Over Willcox, has raised questions as to how the company can be planning to start construction this year when avian and bat studies aren’t expected to be complete until November.
Transcript
Macy's ready for online sales taxCompany invests millions in online fulfillment center
Company plans to build 21+ turbine windfarm east of Tucson By Carol BroederArizona Range News
In what would be a fi rst in South-ern Arizona, a Texas-based company is looking to build a windfarm of 21 to 28 turbine generators standing up to 487 feet tall with blade diameters of 191½-feet, all of which would be capa-ble of producing 51 megawatts of elec-tricity that would be sold to Tucson Electric Power. Th e site is on desert land about 21 miles west of Willcox.
Torch Renewable Energy LLC has submitted a special use application for development of the Red Horse 2 Wind Farm that is scheduled to be heard by Cochise County Planning and Zoning Commission on Wednes-
day (April 10).Th e electricity generated from the
project would be enough to power about 11,000 homes annually.
Torch Renewable Energy’s Glenn Holliday, who is based in Houston, said his company will invest between $100 million and $125 million in infra-structure for the project.
Construction is expected to begin in mid-December this year and com-mercial operations should commence by the end of 2014.
“Th e wind farm will create electric-ity with zero emissions and zero wa-ter usage in an arid region,” Holliday said.
Th e project has already gained unanimous support from the Willcox
City Council. Jeff Stoddard, with the Willcox Development Services De-partment, recommended the coun-cil approve the plant’s construction for the approximately 50 construc-tion jobs and for the possibility that it would “bring other industries related to this project to the Willcox area in the near future.”
Holliday said his company is work-ing closely with Arizona Game and Fish and the U.S. Fish and Wildlife Service to ensure proper study meth-ods are utilized.
“A complete cultural resource study will be completed in the next few months and the fi nal turbine array will be based on information attained from archaeological and environmen-
tal studies,” he said.Holliday indicated “the impact
to neighboring property owners will be minimal,” with the majority of the land surrounding the site owned by the state and “sparsely populated.”
“Th e nearest property owner to the west of the project is more than two miles from the farthest west wind tur-bine,” said Holiday, and they are nego-tiating to continue using the land for cattle grazing.
Homer Hansen, chair of a bird-watching event called Wings Over Willcox, has raised questions as to how the company can be planning to start construction this year when avian and bat studies aren’t expected to be complete until November.
2 APRIL 5, 2013 INSIDE TUCSON BUSINESS
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Tucson fi rm makes solar refrigerator merging hot and cold—off the grid
By Patrick McNamaraInside Tucson Business
Man-made, electric-powered refrig-eration arguably could be one of the most important advancements humankind has ever made.
A Tucson company has taken the ad-vancements in the technology and made them available to people in the world’s re-
mote, off -the-grid locations. “We sell a lot to Africa,” said David
Bergeron, president of SunDanzer Devel-opment, 420 E. Aviation Drive.
What Bergeron’s company sells looks like little more than an off -the-shelf, chest-style freezer. But the SunDanzer line of products is unique because they can run on solar power and don’t require batter-ies.
Th e company purchases freezer and re-frigerator units from major manufacturers such as Electrolux and retrofi ts them. Th e units are basically shells, Bergeron said, without compressors or other parts.
SunDanzer workers install the compa-ny’s own developed and off -the-shelf com-ponents, including blue ice packs fi lled with a proprietary liquid that remains fro-zen for an extended time, to make the units
Bob Clark, left, and Ken Feruson work on SunDanzer solar power freezers. The refrigerators and freezers can stay cold for fi ve days without electricity.
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Up & Comers next week inInside Tucson Business
Be on the lookout for next week’s issue of Inside Tucson Business and the special supple-ment featuring the 2013 class of Up & Com-ers.
Nine Up & Comers selected from nomina-tions submitted by readers of Inside Tucson Business will be featured in the special sec-tion.
A reception honoring this year’s recipients will be held from 5:30 to 7:30 p.m. April 30 at the Playground, 278 E. Congress St.
Pima College names 2nd interim chanellor
A former community col-lege leader from the Midwest was named Tuesday (April 2) to serve as interim chancellor for Pima Community College.
Zelema Harris, who is due to start work April 15, replaces Suzanne Miles, who stepped down as interim chancellor in the face of ongo-ing issues that now threaten its accreditation. Miles had been named interim chancellor to fi ll the vacancy created when long-time chan-cellor Roy Flores resigned amid allegations of sexual harrassment.
Harris was chancellor of St. Louis Commu-nity College from 2007 to 2011. Previously she had president of Parkland College in Cham-paign, Ill. and president of Penn Valley Com-munity College in Kansas City, Mo.
Harris was one of fi ve candidates inter-viewed by Pima Community College’s govern-ing board and employee groups.
Job gains drop Tucsonunemployment to 6.7%
Signifi cant gains in new jobs in education, construction and leisure and hospitality heled drive Tucson’s February unemployment rate down to 6.7 percent, from 7.3 percent in January and 7.6 percent in February 2012, according to the Arizona Department of Statistics report.
Of the 3,500 additional jobs in the region compared with February 2012, 1,600 were in education, 1,500 were in leisure and hospital-ity and 1,300 were in construction. Declines of 700 jobs in professional services and 200 jobs in manufacturing off set some of those gains.
Arizona’s statewide unemployment rate for February was 7.9 percent, down from 8.0 per-cent in January. Th e statewide unemployment is seasonally adjusted, the Tucson rate is not. Th e unadjusted state rate would have dropped to 7.7 percent from 8.3 percent in January.
Zelema Harris
4 APRIL 5, 2013 INSIDE TUCSON BUSINESS
ABOVE: University of Arizona Business undergraduate John Poxon, with Medovate Solutions, blows into a his teams design of a spirometer at UA's Innovation Day, on Thursday (March 28). The group calls it an interactive mechanical incentive spirom-eter, and it is customizable for different sports. The mechanical incentive is making a goal, with your lungs as the power source for the game.
LEFT: Leah Weisel, a Grafted Growers exhibitor, talks to visitors of UA's Innovation Day.Grafted Growers is a local, national and international group, centered around agriculture, part of whose goal is to increase yield in agriculture.
NEWS
UA honors innovators By Lauren ShoresInside Tucson Business
University of Arizona innovators pre-sented ideas in technology, science and business plans, celebrating their entre-preneurial drive and hoping to sell their ideas to companies at the 10th annual Innovation Day on campus March 28.
Th e ideas coming from students and faculty included advances in medical technology to scientifi c research and apps for smartphones.
Hsinchun Chen, Ph.D., a professor in management information systems at the Eller College of Management, won In-novator of the Year for his work in cyber security. He created COPLINK, a system that counters online terrorism and is now used in over 4,500 law enforcement and intelligence agencies. When he sold COPLINK, he became a multi-million-aire, but COPLINK was much more than just a paycheck to him.
“Money should be consequence of success in innovation,” said Chen. “Money doesn’t motivate people at the cutting edge — it’s applying their work. Th ey want to create an impact.”
Jared Griebel, a current doctoral candidate of chemistry, won Student Innovator of the Year for his work with copolymers. Copolymers have been considered a waste product for years, but Griebel converted them into a re-newable source that can be applied to batteries. He is currently working with three chemical manufacturing compa-nies, focusing on energy and ramping his research up to an industrial level.
“Th e basis for this technology goes back 50 years, but no one really cared,” said Griebel. “It’s very easy if you have the right tools. We just took something so simple — a waste product — and made it renewable.”
Gordon Bates
Court OKs EuroFresh saleto NatureSweet for $55.2M
Greenhouse grower EuroFresh Farms will be operating as part of NatureSweet Ltd. by the end of April under a $55.2 million deal that has been approved in U.S. Bankruptcy Court.
A so-called 363 sale was approved March 28 by Judge Eilleen Hollowell. Th e type of sale allowed EuroFresh to market its assets to bid-ders after fi ling for Chapter 11 bankruptcy Jan. 27. In her approval issued March 27, Hol-lowell said the sale to NatureSweet represents the highest and best off er.
Th e sale price includes the original prin-cipal amount of $51.2 million plus at least $4 million in additional expenses accrued since the bankruptcy fi ling.
EuroFresh, headquartered in Willcox with a second greenhouse in Snowfl ake, has about 1,100 employees producing hothouse toma-toes and cucumbers. NatureSweet, head-quartered in San Antonio, Texas, has nearly 5,000 employees and is also a major producer of tomatoes.
Th is had been EuroFresh’s second trip through bankruptcy court. Th e company pre-viously fi led in April 2009 and exited by the end of that year with a recapitalization plan from a group of investors including founder Johan van den Berg, who returned as presi-dent and CEO.
EuroFresh was founded in Pennsylvania in 1990 then relocated to Willcox two years later. Th e Snowfl ake facility was opened in 2002, putting a total of 318 acres in hothouses.
At the time of its January bankruptcy fi l-ing, EuroFresh chief fi nancial offi cer Frank van Straalen said it was due to continued marketplace pressure that had kept the price of tomatoes low.
Airport won’t fi le legalchallenge to tower closure
Th e Tucson Airport Authority’s board of directors has decided not to pursue a legal challenge to the Federal Aviation Administra-tion’s decision to shut down the control tower at Ryan Airfi eld as part of sequestration budget cuts.
After an executive session with lawyers, the board decided not to pursue the matter at this time, according Katy Smith, spokeswoman for the airport authority.
At least 14 airports had fi led legal chal-lenges as of Wednesday. Th e FAA is planning to close 149 towers by May 5.
Th e tower at Ryan Airfi eld, 9698 W. Ajo Way, will be shut down as of 8 p.m. Sunday (April 7).
Bonnie Allin, president and CEO of the air-port authority, said the FAA has been adamant about going through with the closures despite eff orts to appeal the decision.
Th e control tower has been staff ed with controllers paid under a contract with the FAA. Starting Monday, Ryan Airfi eld will become an “uncontrolled” airport, operating as other gen-eral aviation airports do in the Tucson region.
APRIL 5, 2013 5InsideTucsonBusiness.com
Sun Tran buses line up along Sixth Avenue in front of the Ronstadt Transit Center. City leaders are discussing possible commercial development of the site.
NEWS
Talks start over future of Ronstadt Transit Center, possible commercial developmentBy Patrick McNamaraInside Tucson Business
With construction activity in downtown occurring at a pace not seen in decades, Tuc-son city offi cials have begun to look at the Ronstadt Transit Center as the site of a pos-sible mixed-use development.
“I’m encouraged by the fact that divergent groups in the community agree to not main-tain the status quo for another 10 or 20 years,” said Councilwoman Karen Uhlich.
Uhlich requested the city begin a process of involving community members in discussions about the future of the transit center built in the early 1990s to serve as a hub for Sun Tran bus service. Recently, some downtown busi-nesses have raised questions about the need for so many buses to converge downtown.
Th e city council hired architectural fi rm Poster Frost Mirto to begin the public plan-ning process and organize stakeholder meet-ings. Th e fi nal product of those meetings should create a set of parameters for possible development of the nearly 2-acre site.
Th e city later could call for private-sector proposals for development of the area.
Th e area being studied includes a city owned parking lot directly north of the Ron-stadt Transit Center and an undeveloped lot north of that, between the railroad tracks, the Historic Depot and Sixth Avenue.
Any plan will almost certainly include a continued transit presence, while incorpo-rating housing, retail and offi ce space. Open space or some form of a public area also would likely be a part of the design.
Because the current location of the Ron-stadt Transit Center, 215 E. Congress St., will likely be the most appealing for development, the transit portion could be moved to the open parcels north of the site.
Th e prospect of developing more tax-gen-erating properties downtown has generated enthusiasm in some quarters of the down-town community.
“I think the time for regional or national developers to start looking at Tucson is now,” said Michael Keith, CEO of the Downtown Tucson Partnership and one of the stakehold-er groups the city has included in the talks.
Keith said the amount of private invest-ment made downtown in the past few years has been nearly $200 million with another $100 million already lined up for the com-ing year. He described downtown Tucson as one of the hottest markets in the country right now.
“People who visit here are stunned by what’s going on,” Keith said.
Despite the potential appeal, the city would have to navigate some regulation before sign-ing off on a development deal.
Th e Ronstadt Transit Center was origi-nally paid for with funds from the Federal Transit Administration. Improvements to-taling nearly $3 million completed earlier this year at the site also were paid for by the FTA.
Whether the federal government would favor relocating the transit center will need to be determined.
“It seems that it would be wise to keep it where it is,” said Michele Joseph, market-ing director for Sun Tran. Th e bus service also has been included in the ongoing talks about the future of the Ronstadt center.
Joseph said an estimated 17,000 people traverse the Ronstadt center each weekday, based on a 2004 analysis Sun Tran conduct-ed.
Th at analysis did not track whether the Ronstadt Center was the commuter’s start-ing point or destination or if the person was using it to transfer from one bus to another.
Sun Tran will conduct a survey next Wen-desday (April 10) to try to get a sense of why people use the transit center and what they might like to see happen to it. A comprehen-sive analysis of commuters using the center is being planned for the fall.
A 2008 city-commissioned study identi-fying other possible downtown locations for a transit hub was never completed. Uhlich said she suspects that had to do with the fact that the city was looking to sell the site but the study pointed leaving the Ronstadt cen-ter intact.
“Th e study was commissioned to justify that conclusion,” Uhlich said. “We can study this again, again and again, but we’ll keep fi nding the same results.”
A 2005 study the city commissioned recommended retaining the transit facil-
ity on two-thirds of the Ronstadt center and allowing private development on the southern portion that faces Congress Street. Th at study also recommended locating the Greyhound Bus depot on the undeveloped parcel that borders the train tracks north of Ronstadt.
Th e transit center also was the subject of city funded studies in 2007 and 2009, which looked at issues of crime prevention and possible commercial development.
Development of that vacant parcel, if the city decides to keep Ronstadt unchanged, could pose problems itself.
Keith said noise from the constant fl ow of Union Pacifi c trains could make the prop-erty less desirable for commercial develop-ment.
Perhaps more important are the poten-tial environmental issues.
Keith said an oil plume beneath the sur-face near the rail tracks could limit develop-ment possibilities.
Records from the Arizona Department of Environmental Quality show that sev-eral subterranean storage tanks where a dry cleaner once stood north of the tracks had for years leached tetrachloroethene and petroleum hydrocarbons into the soil and groundwater.
While no active wells are in operation in the aff ected area, the contamination could aff ect the future of possible development.
Meetings with the stakeholder groups are scheduled to wrap up in May. Follow-ing that, the city council would decide what a request for proposals would require and whether to move forward.
In what will probably be their fi nal sea-son here, the Tucson Padres have started their Triple-A season. Th ey’re on the road this weekend and will have their home opener at 7:05 p.m. April 12 at Kino Stadi-um, 2500 E. Ajo Way, when they’ll play the Fresno Grizzlies.
In the meantime, the Padres this year will be broadcast on the Source KCUB 1290-AM. Th e games tonight, Saturday and Sun-day at Salt Lake City will be broadcast after the University of Arizona Wildcats’ baseball games.
Th e four games next week at Colorado Springs will be live at 5:25 p.m. Monday and Tuesday and 9:55 a.m. Wednesday and Th ursday.
The Tucson
INSIDERInsights and trends on developing andongoing Tucson regional business news.
Decommissioned, butnot decertifi ed
Th e control tower at Ryan Airfi eld, 9698 W. Ajo Way, is due to be decommissioned as of Monday, but it won’t be decertifi ed. In fact, quite the contrary.
Although the control tower is being shut down as part of the Federal Aviation Admin-istration’s $637 million in budget cuts due to sequestration, the Tucson Airport Authority, which runs the general aviation airport, will keep the equipment in the tower function-ing in preparation for a certifi cation review that was already scheduled to take place in May.
Danette Bewley, director of operations, says the goal would be to get the tower back up and running as quickly as possible, should Washington offi cials remove the FAA’s cuts.
How’s that add up? Tucson Mayor Jonathan Rothschild told
the news media recently that in planning for next fi scal year’s budget, the city isn’t plan-ning to reduce services or increase taxes.
At the same time, though, the city expects to lose millions of dollars in state funding and increasing personnel costs, which are contributing to an anticipated $15 million defi cit going into the fi scal year.
Rothschild said short-term revenue gen-erators could be refi nancing debt, imple-menting a stormwater utility fee and requir-ing utility providers to pay for their own graffi ti abatement.
6 APRIL 5, 2013 INSIDE TUCSON BUSINESS
NEWSready for sale.
Bergeron said the company builds some units specially designed to hold vaccines and other medications destined for remote areas without electricity.
Solar-power systems, which custom-ers either already own or buy separately, charge the refrigerator and freezers dur-ing the day. Th ick insulated walls and the ice packs keep the contents at a constant temperature for days without power, if needed.
Bergeron said the units have tested to remain at temperature for three days at 110 degrees or fi ve days at 90 degrees.
“Our customers are so remote that when it gets there it has to work,” he said.
SunDanzer has about 13 employ-ees between two locations, Tucson and El Paso, where much of the company’s manufacturing takes place.
Th e company sells about 2,500 freezer and refrigerator units annually.
Bergeron started the company in 1999, after working as a contract employee for NASA on refrigeration projects. SunDan-zer was born out of the work with NASA, which brought together two of Bergeron’s interests.
“I always liked refrigeration and al-ways liked solar,” he said.
Over the years, the company has de-
veloped additional products, some de-signed for military uses.
It’s currently developing a solar-pow-ered water bottle chiller. With an appear-ance similar to a large soda machine, the unit could be placed with troops in re-mote locations where power is scarce.
Th e unit holds 500 liters of water in standard sized plastic bottles, which troops can take from a door at the base.
If the chiller works as he anticipates, Bergeron said they would expect to sell as many as 1,000 to the U.S. Department of Defense.
“If we’re lucky, we might fi nd com-mercial customers as well,” he said.
Another military project the company has started work on is creating a solar-diesel hybrid powered mobile refrigera-tion unit.
Th e military already uses large roll-off units for cold storage, which SunDanzer is working to convert to hybrid or even full-solar technology.
Successful development could turn into a major contract for SunDanzer, Bergeron said. He estimates the military has at least 3,000 of the diesel-powered refrigerator units in the fi eld.
Contact reporter Patrick McNamara at [email protected] or (520) 295-4259.
SOLAR CONTINUED FROM PAGE 3
FORECLOSURE NOTICES Partnership for Quality Affordable Housing No. 5 2162 W. Speedway 85745 Tax parcel: 116-03-019H Original Principal: $2,700,000.00 Benefi ciary: US Bank, as successor in interest to Bank of America, as trustee successor by merger to LaSalle Bank, as trustee successor by merger to LaSalle National Bank, as trustee to Morgan Stanley Capital Inc. commercial mortgage pass-through certifi cates, series 1998-WF1, c/o CWCapital Asset Management LLC, Bethesda, Md. Auction time and date: 11:30 a.m. June 19, 2013 Trustee: Michelle Ghidotti-Gonsalves, Assured Lender Services, 2552 Walnut Ave., Suite 110, Tustin, Calif.
D.E. Marranville Corporation Inc. 8122 S. Fuller Road, Three Points 85735 Tax parcel: 208-54-050B Original Principal: $25,000.00 Benefi ciary: Kaisutam Family Trust Auction time and date: 10 a.m. June 25, 2013 Trustee: Michael R. Urman, DeConcini McDonald Yetwin & Lacy, 2525 E. Broadway, Suite 200
D.E. Marranville Corporation Inc. 8120 and 8126 S. Fuller Road, Three Points 85735 Tax parcel: 208-54-050E and 208-54-050F Original Principal: $48,500.00 Benefi ciary: Kaisutam Family Trust Auction time and date: 10 a.m. June 25, 2013 Trustee: Michael R. Urman, DeConcini McDonald Yetwin & Lacy, 2525 E. Broadway, Suite 200
ACF Group LLC and Plumtree Holdings LLC 4014, 4024 and 4034 E. Pima St. 85712 Tax parcel: 122-13-241A, 122-13-241B and 122-13-241C Original Principal: $462,300.00 Benefi ciary: Wells Fargo, Phoenix Auction time and date: 11:30 a.m. June 25, 2013 Trustee: Wade M. Burgeson, Engelman Berger, 3636 N. Central Ave., Suite 700, Phoenix
ACF Group LLC 4110 E. Spring St. and 2785 N. Calle De Romy 85712 Tax parcel: 110-07-233E and 110-07-048 Original Principal: $780,000.00 Benefi ciary: Wells Fargo, Phoenix Auction time and date: 11:30 a.m. June 25, 2013 Trustee: Wade M. Burgeson, Engelman Berger, 3636 N. Central Ave., Suite 700, Phoenix
Kino Air Conditioning & Heating LLC 1602 S. Park Ave. 85713 Tax parcel: 129-15-0180Original Principal: $135,000.00 Benefi ciary: Yasser Abauaelian Auction time and date: 10 a.m. June 20, 2013 Trustee: Title Security Agency of Arizona, 2370 E. Broadway, Suite 100
Joseph E. Greene III and Early Bird Day Care & Learning Center Inc. 118, 130 and 138 E. Prince Road 85705 Tax parcel: 106-03-008COriginal Principal: $300,000.00 Benefi ciary: Gerald A. Rust Auction time and date: 11:30 a.m. June 21, 2013 Trustee: First American Title Insurance Company Mortgage Services, 9000 E. Pima Center Parkway, Scottsdale
Pilling Griffth Properties LLC 810 E. 19th St. 85719 Tax parcel: 124-15-0370
PUBLIC NOTICESPublic notices of business bankruptcies, foreclosures and liens filed in Tucson or Pima County and selected filings in Phoenix. Addresses are Tucson unless otherwise noted.
Original Principal: $379,000.00 Benefi ciary: Commerce Bank of Arizona Auction time and date: 11:30 a.m. June 25, 2013 Trustee: Steven J. Itkin, Waterfall Economidis Caldwell Hanshaw & Villamana, 5210 E. Williams Circle, Suite 800
LIENSFederal tax liens Sunset Quality Builders, 131 W. Rolling Hills St., Oro Valley. Amount owed: $8,571.08. Terry D. Gray Cactus Counseling Associates, 2031 E. Edgemont St. Amount owed: $23,320.71. Lynch Automotive Inc., 6847 E. Mary Drive. Amount owed: $1,833.79. Bennett Pool Specialties and Matthew Thomas Bennett, 4050 E. Camino Del La Bajada. Amount owed: $1,749.62. Dos Llaves Enterprises LLC and Ernie M. Smith, PO Box 89119, 85752 (2322 W. La Cresta Road). Amount owed: $8,267.56.Saguaro Occupational Therapy LLC and Kim E. Lonsway, 8192 S. Placita Almeria. Amount owed: $7,161.50. David Lipartito PC, 177 N. Church Ave., Suite 700. Amount owed: $1,950.00. Tortilla Factory De Tucson and Juan M. Villalva and Maria I. Villalva, 1755 W. Ajo Way. Amount owed: $1,239.39. Ron Fletcher Company Inc., 1980 E. River Road, Suite 250. Amount owed: $27,911.93. Houston Careers Specialists LLC, 2540 N. Pantano Road. Amount owed: $48,659.21. D&B Powwerwashing Service LLC and Brenda Kreger, 5841 S. Garrett Ave. Amount owed: $6,885.63. Mama Louisa’s Restaurant and S&J Foods Inc., 2041 S. Craycroft Road. Amount owed: $119,347.12. Nico’s Mexican Food and Arturo Carreon, 6012 E. Hampton St. Amount owed: $5,028.16.
Mechanics liens (Security interest liens of $1,000 or more fi led by those who have supplied labor or materials for property improvements.)Sahara Mechanical Inc., 3887 E. Ajo Way, against DND Neffson Co., c/o General Growth Properties, PO Box 6117905, Chicago 60661; and DC Builders & Development LLC, 3370 N. Hayden Road, Suite 123-739, Scottsdale. Property: 4500 N. Oracle Road, Suite 370, Toby Keith’s I Love This Bar and Grill. Amount owed: $93,541.30.
Classic Plumbing Co. Inc., 5777 W. Ajo Way, against 2475 Water Street LLC, 2475 E. Water St. Property: 2475 E. Water St. Amount owed: $2,650.00.
Ascent Aviation Services Corp., 6901 S. Park Ave., against Falcon Air, 261 NW 105th Ave., Doral, Fla. Property: McDonnell Douglas MD-83 Registration N306FA. Amount owed: $14,113.40.
Ascent Aviation Services Corp., 6901 S. Park Ave., against Falcon Air, 261 NW 105th Ave., Doral, Fla. Property: McDonnell Douglas MD-83 Registration N125NM. Amount owed: $59,906.22.
CalPortland Company, 2025 E. Financial Way, Glendora, Calif., against Exeter 6720 S Alvernon LLC, also known as Alvernon Way Commerce Center LLC, 145 W. Germantown Pike, Suite 150, Plymouth Meeting, Pa.; and c/o Ray Rivas, 13853 N. Steprock Canyon Place, Oro Valley; and David A. McEvoy, 4560 E. Camp Lowell Drive. Property: 6720 S. Alvernon Way. Amount owed: $43,603.53.
Legacy Air Inc., 3529 E. Wood St., Phoenix, against Marana Health Center Inc., 13644 N. Sandario Road, Marana. Property: 13395 N. Marana Main St., Marana. Amount owed: $6,402.50.
A row of SunDanzer freezers.
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APRIL 5, 2013 7InsideTucsonBusiness.com
8 APRIL 5, 2013 INSIDE TUCSON BUSINESS
CORPORATE REAL ESTATE SERVICES3709 N. Campbell Ave, Suite 201 | Tucson, AZ 85719 | 520.881.8180 | FAX 520.881.5844Contact us at 1.800.831.4090 or at www.cotlow.com | Dean P. Cotlow [email protected]
We’ll find what you’re looking for.Because we know the market.And we know the right people.And we’re watching.Carefully. Intently. Constantly.
We’ll find what you’re looking for.Because we know the market.And we know the right people.And we’re watching.Carefully. Intently. Constantly.
MEDIATucson’s TV top 10 and more nug-gets from latest Nielsen ratings By David Hatfi eldInside Tucson Business
While TV stations rush to check how their local newscasts did in the latest Nielsen rat-ings — as was reported here last week — there are other media nuggets to be found.
Take for instance these from the Febru-ary ratings:
• As if anyone needed further proof of the popularity of the NFL’s Super Bowl, this year’s Baltimore Ravens-San Francisco 49ers game grabbed 72 percent of Southern Arizona households watching TV from 4:30 to 8:45 p.m. Feb. 3. An estimated total of 187,025 households tuned in to the game broadcast on CBS, KOLD 13.
• Th e Oscar Awards on ABC Feb. 24 were also big, watched on KGUN 9 in 91,542 households, 42 percent of the households watchng TV that night. Th e split of viewers ages 18-49 were closely split — 22,077 wom-en and 19,530 men — those numbers repre-sent 43 percent of all men watching TV at that time but apparently a higher percent-age of women found other things to watch, as 34 percent were tuned to the Oscars. Seth MacFarlane probably accounts for that.
• Th e Grammy Awards Feb. 10 on CBS were watched in 55,626 Southern Arizona households on KOLD, representing 25 per-cent of those watching TV. For those who might think the Grammys would be stron-gest among younger viewers, its strongest demo was 25-54, and more than half, 53 percent, of them were men.
• NBC’s coverage of the Accenture Match Play Championship had 18,834 households tuned in to KVOA 4 for Saturday’s coverage on Feb. 23 and 17,520 for the Sunday cover-age on Feb. 24.
Tucson’s top 10 Eight of the top 10 prime time series in
Southern Arizona are on CBS and KOLD 13. Th e other two are on ABC and KGUN 9. Th ese are the top 10 prime time series, ranked by average viewers ages 18-49, in the Tucson market:
“Th e Offi ce,” at 8 p.m. Th ursdays on KVOA 4, was NBC’s highest rated show in Tucson, coming in at No. 13 with 14,520 viewers ages 18-49. Fox’s highest rated show was “Th e Simpsons,” 7 p.m. Sundays on KMSB 11, at No. 15 with 14,080 in the age group.
PBS’ “Downton Abbey,” 8 p.m. Sundays on KUAT-TV 6, made the list, tied with three other series for No. 48, averaging 11,718 viewers ages 18-49.
‘AZ Illustrated’ fi rst outingArizona Public Media’s retooling of
“Arizona Illustrated,” 6:30 p.m. weekdays on KUAT-TV 6, didn’t do much to move the ratings needle in its fi rst outing. Granted, the show, now called “AZ Illustrated,” premiered Feb. 4, fi ve days into the start of Nielsen’s February sweeps which didn’t allow for the impact of any marketing. And the unusual move to take the show off the air for the month of January didn’t help maintain viewing habits.
As a result, the Monday-Friday ratings average was nearly identical to what it did in the last ratings in November and up slightly from February 2012.
Now that each night’s program is themed — metro news on Mondays, science on Tuesdays, nature on Wednesdays, the arts on Th ursdays and politics on Fridays — it provides an interesting view of subjects audiences care about. Judging from this fi rst ratings period, Wednesdays’ nature and Fridays’ politics are the two most popular nights, averaging about 6,700 viewers age 18 and older while the Th ursdays’ arts show is the least popular night, averaging about 3,350 viewers.
Both the low-rated arts shows and higher-rated politics shows have something common: all of their viewers are 55 or older, according to Nielsen. In fact, viewers 65 or older make up nearly two thirds of the Friday night political show and more than 75 percent of the Th ursday arts show. Because of the dates of the Nielsen ratings, the Th ursday and Friday shows are averages of three weeks, while the other nights are four-week averages.
A fi rst rating doesn’t necessarily deter-mine a show’s fate and, indeed, when the revamped show was launched chief content offi cer Jacqueline Kain didn’t respond to a request for an interview as to how she would judge its success, but if audience acceptance is in the equation, “AZ Illustrated” is going to need something more out of the next ratings.
Kailua Vil lageTM is a trademark of Kailua Vil lage Business Improvement District and Holualoa® is a registered trademark of Holualoa Arizona, Inc. Al l marks are used with permission.
10 APRIL 5, 2013 INSIDE TUCSON BUSINESS
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Prior to the Stork’s Nest maternity home opening in the mid-1920s when St. Mary’s was still a tubercular hospital, children in Tucson were born at home. In 1922 Robert Felix, as was his older sister, was born in his grandparents’ home in the 600 block of East First Street.
Just in case, obstetrician Dr. George Purcell, who was known to “occasionally take a nip” didn’t make it in time, the Felix’s had a midwife standing by. It was a wise decision. Baby Robert Felix entered the world before the doctor arrived, though he says, “Doc Purcell still got his $50 birthing fee.” Younger brother Bill was born three years later at the Stork’s Nest.
With a family of three children, Louis Felix built a new home on Mabel Street in 1925.
“My dad was Tucson’s fi rst Hispanic to build a house north of Speedway,” Robert Felix remembers. “During a monsoon rain, the curbs would fl ood. We would watch cars fl oat down the street until they reached the end of Mabel Street at Stone Avenue.”
Louis Felix, who was born in Tucson in 1898, began his career at age 18 when he went to work for Southern Arizona Bank as a messenger boy. He retired Dec. 31, 1963, as president of the bank.
“Th at success for a Hispanic just didn’t happen in Tucson, or for that matter, in any other city,” Robert Felix said. “Dad told me that during the fi rst part of the Depression, he was promoted to teller. He thought about quitting the bank to go to work for the Southern Pacifi c. Cashing pay checks every two weeks he knew the railroad men were paid twice as much as he earned. Dad was a man who always wore a hat, felt in the winter and a straw one in summer, along with a coat and a tie.”
Felix said that one day his father noticed
Dentist Robert Felix and his lifetime of memories with Tucson
Robert Felix in 1962.
REMEMBERING TUCSON
the railroad men all had dirty fi nger-nails. So Louis J. Felix, who never went to college, chose instead to remain at Southern Arizona Bank.
Growing up Robert Felix attended University Heights, Roskruge,
and Tucson High schools. He was an honor-roll student and served as a class offi cer. After graduation, he studied pre-med at the University of Arizona.
When Pearl Harbor was attacked Dec. 7, 1941, Robert Felix was too young to join the service without his parents’ permission. As part of his eff ort to talk his son out of joining the Navy, Louis Felix tapped an old friendship, Dr. Paul Bennett, dean of the dental school at the University of Southern California.
“I was accepted before I even applied. In two years and fours months, I graduated from dental school. In order not to be drafted, I spent the last 18 months of school in the Naval Reserves,” Robert Felix said.
Monte Mansfi eld, a prominent business-man who had owned Tucson’s Ford dealer-ship, was head of the draft board here. Felix recalls, “When I went to Navy headquarters, prominent lawyer Lt. Commander Harold Warnock swore me into the service.”
All but three months of Felix’s 21 months’ tour of duty was spent at Subic Bay, the Philippines.
“Th e Navy paid me $110 a month and provided my clothing. I graduated as a lieutenant junior grade offi cer in the Dental Corp,” Felix said.
When he returned to Tucson offi ce space
MARY L. PEACHIN
APRIL 5, 2013 11InsideTucsonBusiness.com
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REMEMBERING TUCSONwas at a premium. He went to work part-time for Dr. C.E. Matteson as a preceptor for no pay, under Drs. Charles and William Tweed in the Valley National Bank building. Charles TWeed was the founder of modern ortho-dontics and Felix would later take the exam to become a member of the American Association of Orthodontists.
“If I recall, your dad, Leon Levy, paid me $700 for your orthodontics,” Felix told me, adding that Jack Sakrison gave the same for his son, now lawyer Jim Sakrison. “Prior to the two of you, Charlie Tweed was paid for the work I did,” Felix said.
During the late 1940s, at the corner of Broadway and Tucson Boulevard there was an ice cream parlor known as the Hidden House. Judge Evo DeConcini built offi ces around the property. Many of the physicians, who were practicing downtown, moved to DeConcini’s property. Th e migration then continued eastward taking Felix and other doctors to a building at Fifth Street and Wilmot Road, called 601 Wilmot. Th e medical complex’s roofl ine quickly earned it the nickname, “Titty City.”
Th e complext has since been replaced by another offi ce complex that includes the Tucson headquarters for Caliber Funding.
When prominent real estate developer Dell Webb sold the medical building, Felix was forced to fi nd another location. He moved to 801 N. Wilmot Road when he
rented space from Dr. Michael Don. For the fi nal 15 years of his practice, Felix followed Don relocating to Old Farm Executive Park, 6049 E. Grant Road. Felix’s daughter Debbie is now offi ce manager there.
Felix and his wife Dottie were married in 1952. “I married a widow with three children
and then we had three more children,” he said. After 45 years of marriage Dottie died in 1997 and Felix retired shortly thereafter.
A loyal University of Arizona Wildcats fan, Felix bleeds “red and blue” followinig the football, basketball, volleyball and softball teams. Since 1948, he has held season tickets
for both basketball and football. He takes pride in being one of six living
charter members of the Tucson Conquista-dores, who are celebrating their 50th anniversary this year. A group of 41 business-man were among the founding members.
“Roy Drachman, thought forming the organization would help Tucson could get a PGA golf tournament,” Felix remembers, add-ing, “One year, golf pro Rickie Rarick couldn’t pay off the entire purse, which was then $35,000. Roy dug in his pockets to pay the balance of the purse.”
In 1966, the Conquistadores took over sponsorship of the PGA Tour stop in Tucson, then called the Tucson Open, and moved it to Tucson National Country Club. In previous years dating back to 1945, the golf tourna-ment had been at El Rio Golf Course.
Th e Conquistadores, who have continued to work with what is now Accenture Match Play Championship in February, have raised more than $15 million for youth sports causes.
Th rough the Conquistadores, Felix says, “I met a lot of people who I would never have met, whose paths I would never crossed. And vice versa.”
Do you have an historical Tucson story to share? Contact Mary Levy Peachin at [email protected]. Her historical columns appear the fi rst week of each month in Inside Tucson Business.
Robert Felix, second from left in the front row, with members of the board of Tucson Country Club in 1979.
12 APRIL 5, 2013 INSIDE TUCSON BUSINESS
No autographs please.There’s only one credit union in Tucson that has maintained its 5-Star rating for the past six consecutive years.
But we won’t tell you who.(nudge, nudge, wink, wink)
Pimafederal R
CREDIT UNION
www.pimafederal.orgFederally insured by NCUA
XNLV82747
“It’s a chamber of commerce day” isn’t about
beautiful Southern Arizona weather...
it’s about creating a strong local economic climate.
Join the Tucson Metro Chamber today.Phone (520) 792-1212 or visit TucsonChamber.org.
Growing Businesses. Building Communities. TucsonChamber.org
ON GUARD
It’s not the mistake, it’s what you do next to keep customers
Every business messes up from time to time. Sometimes the slip-up is due to something out of a business’ control, and other times an employee or an owner just makes a mistake. While it’s important to correct the underlying issue that caused the customer dissatisfaction, it’s just as impor-tant to eff ectively deal with the fallout.
Earlier this year a Carnival Cruise ship was stranded in the Gulf of Mexico for fi ve days after a fi re broke out on board, knocking out the ship’s power and plumbing. Th e head-lines that were spread across newspapers and the Internet depicted what most travelers would consider a vacation nightmare.
So how did Carnival handle the situation? Well, passengers received a refund for the cost of the cruise, $500 cash, and a voucher for a future cruise. What they didn’t get was much of an apology, indeed, even much acknowledgement from Carnival Chief Executive Mickey Arison, who stayed out of sight, except to attend a Miami Heat basketball game.
Jeff ery Sonnefeld, a Professor of Management Practice at Yale School of Management, says that this was a huge
blunder by Carnival and Arison and a textbook example of how to destroy trust between a business and its customers.
In being absent throughout his company’s crisis, Sonnenfeld says
Arison’s lack of action was a “bold public show of arrogant indiff erence,” not just to the stranded passengers on the ship, but to millions of potential customers around the world. When a crisis strikes a company, consumers want to see the company’s leaders out in front dealing with the problem and showing they care.
In contrast to Arison’s lack of action, Kim Bhasin, who writes for Business Insider online, points to another CEO who did act responsibly when a crisis engulfed his company. You may recall in 1996 Washington state health offi cials confi rmed a link between a local E.coli outbreak and Odwalla’s
GOOD BUSINESS
KIM STATES
TUCSON BBB ACTIVITY REPORT MARCH 2013
Top 10 most complained about industries Complaints Settled
New car auto dealers 9 89%
Used car auto dealers 9 100%
Property management 7 86%
Auto repair and service 6 83%
Local charities 5 40%
Movers 5 80%
Retail furniture 5 100%
Auto sound system sales and services 4 75%
Real estate 4 75%
Plumbing contractors 3 67%Top 10 most inquired about industries Inquiries
1. Roofi ng contractors 1,851
2. Air conditioning contractors and systems 1,584
3. Auto repair and service 1,499
4. Used car auto dealers 1,296
5. Plumbing contractors 1,165
6. General construction contractors 1,056
7. Landscape contractors 1,082
8. Movers 877
9. Property management 786
10. Pest control services 736
Source: BBB of Southern Arizona
APRIL 5, 2013 13InsideTucsonBusiness.com
fresh, unpasteurized apple juice. One child died and more than 60 people became sick, prompting more than 20 lawsuits.
Bhasin points out that CEO Stephen Williamson immediately recalled all Odwalla products containing apple or carrot juice, which cost the company around $6.5 million. He accepted responsi-bility when talking to the media and promised to pay all medical costs for those aff ected by the outbreak.
Th e company had faced its worst-case scenario: death caused by one of its food products. Odwalla lost a third of its market value by the time the situation subsided, and pled guilty to criminal charges relating to the outbreak, which resulted in a $1.5 million fi ne from the U.S. Food and Drug Administration.
But Odwalla was still standing. It focused on customer relations in the months following, attempting to rebuild trust. Odwalla fi xed the contamination issue, improved its quality control and safety system, re-launched its apple juice two months later and in 2001, Coca-Cola bought Odwalla for $186 million.
Th ankfully most businesses will never experience a crisis on the scale of what Odwalla and Carnival experienced, but the same principles for handling major crises should be applied to handling everyday consumer complaints and concerns.
Minor customer complaints can turn into much bigger issues if not handled correctly. If your company receives a complaint, here are a few tips for how you can handle it and not only maintain trust, but in some cases, strengthen it:
• See it as an opportunity. A customer complaint is not an insult or personal aff ront. It is an opportunity to improve. You should take pride in your business, but don’t let your ego get so wrapped up in it that you can’t see the opportunities to meet or exceed your customers’ expectations.
• Respond! One of the most common reasons consumers fi le complaints with the Better Business Bureau is either a lack of response, a delayed response and in some cases a just plain bad response. If you aren’t responding to your customers’ concerns immediately, and in good faith, they will assume you are not going to fi x the problem, and seek a solution elsewhere.
• Sympathize at the outset. Acknowl-edge the customer’s feelings without necessarily agreeing with their position. Be friendly, open, non-defensive and sincere. Whether you tell them or show them, customers needs to know they are impor-tant to your business.
Apologize for the misunderstanding, even if it was on the part of the customer. If the error was the customer’s, allow him or her to save face. You want the customer to return and spend more money with your business!
Contact Kim States, CEO of the Better
Business Bureau of Southern Arizona, at kstates@
tucson.bbb.org or (520) 888-6161. Th e BBB website
is www.tucson.bbb.org. On Guard appears the fi rst
week of each month in Inside Tucson Business.
14 APRIL 5, 2013 INSIDE TUCSON BUSINESS
PROUD PAST
BRIGHT FUTUREFor 50 years GLHN has created success and growth through robust partnerships based on integrated, total design services and technical excellence.
Looking for a COO – A Strategic Partner in Our Continued Growth and SuccessThe winning candidate will:• Ensure effi cient, effective day-to-day business operations• Have a passion to magnify our proven record of growth and success• Focus our team effort and mentor our future leaders for a new era of progress
MBA and 10 years of business experience expected. Knowledge of consulting, design and construction benefi cial but not required.
GET ON THE LISTNext up: Landscape architects and Pool builders
Research is underway gathering data for Inside Tucson Business’ 2014 Book of Lists.
Upcoming lists are: • April 12: Residential real estate fi rms,
Real estate brokers, Appraisers• April 19: Architectural fi rms, Interior
design fi rms, Engineering fi rms• April 26: Landscape architects, Swim-
ming pool builders • May 3: Defense contractors If your business has been on a previous
list in one of these categories, look for an email from Jeanne Bennett, List researcher for Inside Tucson Business, with details on how to update your profi le. If you would like to add your business to one of these lists, go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page to create a profi le.
HOSPITALITY & LEISUREPascua Yaqui tribe tapsinterim CEO for casinos
Alex Amador, director of fi nancial opera-tions, has been named interim chief execu-tive offi cer of Pascua Yaqui Gaming Enter-prises replacing Wendell Long who has moved to Manistee, Mich. as the new general manager of the Little River Casino Resort.
Amador holds a business administration degree from California State University Fresno and has been a tribal employee since 2004. Th e tribe’s gaming properties include Casino del Sol Resort, 5655 W. Valencia Road, and Casino of the Sun, 7406 S. Cami-no de Oeste.
Long had served as CEO since 2006. As part of a management succession/career training program, Amador was one of fi ve candidates in the running to replace him through a program called STEP: Supporting Tribal Employment Partnership.
Long had long maintained that his goal was to “work myself out of a job.” Th e tribal council’s long-term goal is to place Pascua Yaqui tribal members in upper management.
Pima County has a new clerk of the Su-perior Court after Toni Hellon was sworn in Monday (April 1) as the eleventh person to hold the offi ce since statehood.
Hellon, who had been chief deputy clerk since February 2007, was appointed by Gov. Jan Brewer to fi ll out the remaining 21 months of Patricia Noland’s term. Hellon had been a state senator from 2001 thourgh 2006.
Noland, who had been in the elected po-sition for 14 years, resigned eff ective March 31 to spend more time with her family.
EDUCATION/RESEARCHUA scientist at Obama BRAIN Initiative unveiling
Dr. Fernando D. Martinez, head of the Bio5 Institute at the University of Arizona, was among scientists invited to join President Obama Tuesday at the White House for the unveiling of the “BRAIN” Initiative — a new research eff ort to revolutionize understand-ing of the human brain and discover new ways to treat, prevent and cure brain disorders.
Th e BRAIN Initiative — short for Brain Research through Advancing Innovative Neurotechnologies — builds on the Presi-
BRIEFSdent’s State of the Union call for investments in research and development to fuel inno-vation and economic growth.
Th e initiative would accelerate the inven-tion of new technologies to help researchers produce real-time pictures of complex neu-
The Cedar Rapids, Iowa-based data-storage company Involta has completed a facility in Tucson. The $10-million center, at 1215 E. Pennsylvania St., holds 600 cabinets of data-storage infra-structure. The company has said about 24 people will work at the new location. It’s the fi rst large-scale commercial data-storage facility in the Tucson region. Pictured above at a ribbon-cutting event on Wednesday are: From left, Larry Lucero, senior director of customer programs and services of UNS Energy Corp, Bruce Lehrman, CEO of Involta, Lonnie Bloomquist, CTO of Involta and Tucson Mayor Jonathan Rothschild.
ral circuits and visualize interactions of cells that occur at the speed of thought.
Martinez is a practicing physician-scien-tist with his own research laboratory, in ad-dition to leading three interdisciplinary re-search centers at the UA.
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Ballet Tucson’s fi nal performance of the season is the annual “Dance and Dessert” this weekend that pairs classic and new dance works with desserts from Tucson restaurants as a benefi t for the ballet company. Peerformances are at 7:30 tonight (April 5), 2 and 7:30 p.m. Saturday and 1 and 5 p.m. Sunday at the Stevie Eller Dance Th eater, 1737 E. University Blvd. on the Univer-sity of Arizona Mall. Tickets are $30 or $22 in groups of 10 or more. Buy them online at www.BalletTucson.org.
MusicTucson Chamber Artists
presents performances of Brahms’ Liebes-lieder Walzer for Chorus and Four-Hands Piano and Martin’s Mass for Double Choir that will include a performance from the Arizona Choir from the University of Arizona and its conductor Bruce Chamber-lain joining TCA’s choir. Performances are at 8 tonight at Grace St. Paul’s Episcopal Church, 2331 E. Adams St., and 3 p.m. Sunday at Catalina United Methodist Church, 2700 E. Speedway. Tickets are priced at $20 or $30. Buy them online at www.TucsonChamberArtists.org.
And at 7 p.m. Sunday trumpet maestro Chris Botti performs at Centennial Hall, 1020 E. University Blvd. on the UA campus. Individual tickets are priced from $35 to $80 with discounts for children, students, seniors, military and UA faculty and staff . Buy them through UApresents at www.uapresents.org.
ArtCheck out the next generation of artists
coming out of the University of Arizona as they display their work in the annual
Master of Fine Arts Th esis show opening today at the Joseph Gross Gallery, 1031 N. Olive Road on campus. Th e works of 12 talented students who have completed
their studies will be up through May 14. Th e gallery is open week-days from 8 a.m. to 5 p.m.
Film eventFans of the cult TV show
“Mystery Science Th eater 3000” — or MST3K — will want to be at the Loft Cinema, 3233 E. Speedway, at 7 p.m. Saturday when the series creator and original host Joel Hodgson will present a special show called “Riffi ng Myself.” General
admission tickets are $20 or $18 for Loft members. Th ere is a $45 special VIP package that includes special seating for the show and a meet-and-greet afterwards with Hodgson.
FilmA pair of classic fi lm titles are returning
to the multiplex this weekend in the form of a re-release of a sci-fi favorite, and there’s a new version of a horror master-piece. Th e 1981 cult-classic “Evil Dead” has been re-imagined with more scares and gore. Th e 1993 Steven Spielberg classic “Jurassic Park” is being re-released in 3D, which should add a new dimension to the dinosaurs-run-amok premise. A much smaller fi lm is the excellent “Ginger and Rosa,” which follows two girls in 1960s England during the Cuban missile crisis.
Contact Herb Stratford at [email protected]. Stratford teaches Arts Management at the University of Arizona. His column appears weekly in Inside Tucson Business.
ARTS & CULTURE
Ballet Tucson caps season with ‘Dance and Dessert’ fundraiser
OUT OF THE OFFICEON THE MENU
My fi rst restaurant job was in 1984 at a Wienerschnitzel on Broadway near Wilmot Road. It was also my introduction to theme-based restaurants, and my hot dog higher-ups took the theme thing quite seriously. In fact, during key promotions, I was required to don the corporate headwear, a cap in the shape of a giant chili dog stretching from ear to ear. I worked the drive-through on weekend nights, in that ridiculous cap. Suffi ce it to say, I didn’t date much in 1984.
Th emed restaurants seemed to have all but disappeared but two Tucson establishments are carrying on, with patrons fully engaged in the fun that the owners set out to inspire.
For Tucsonans, hitting the beach used to mean packing the car and heading to San Diego. Today, at Fini’s Landing, 5689 N. Swan Road, co-owners Doug “Fini” Finical and Scott Mencke have brought the beach to the Catalina Foothills, complete with fl ip-fl op handles on the front doors and a bar in the shape of a large fi shing boat. I could have sworn I saw Jimmy Buff ett searching for his lost shaker of salt on my last visit.
A beach theme has the potential to be overdone, but Finical and Mencke have found the right balance with Fini’s, and this is the case on the menu as well.
What fascinates me most from a culinary perspective is the selection of “pangas” on the menu, named for the fi shing skiff s common in Mexico. Th e pangas at Fini’s are grilled romaine lettuce boats prepared six diff erent ways, fi lled with such dockside delicacies as Cuban braised beef and grilled salmon. You’d be smart to pair those boats up with a “Spicy Señorita,” Fini’s margarita that took fi rst place at the Tucson Taco Festival last year. It features tequila, fresh lime juice, a
jalapeno, prickly pear simple syrup and a salted and cayenne peppered rim.
Surf’s up at Sunrise and Swan. Inviting its guests to remember what it
was like to be a kid, Playground, 278 E. Congress St., is a restaurant that introduces a theme built around fun and games, and a happy hour owner Kade Mislinski calls “recess.” With swing sets hanging from the ceiling, hop-scotch leading the way back from the restrooms, and a fl oor made of more than 2,500 marbles, this place takes you back. But while the atmosphere at Playground is all about childhood fun, its culinary program is anything but childish.
Th e theme might trigger memories of chocolate milk and bologna sandwiches, but foodies will fi nd a home here. Dishes that have rotated seasonally have included an arugula, melon and proscuitto salad and mushroom bruschetta with a balsamic reduction. Th e cocktail program pulls the theme through as well, with selections such as the “Bookworm,” featuring bourbon, bitters and an apple ginger liqueur. I surely didn’t eat or drink like this as a kid, and I’ve been having some fun catching up — my kind of homework!
What other restaurant theme have you run across that has captured your imagina-tion? If it’s anything to do with hot dogs, I have a certain cap you can borrow.
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18 APRIL 5, 2013 INSIDE TUCSON BUSINESS
FINANCEYOUR MONEY
Target: Getting to the 0%tax bracket in retirement
Retirement is for the rest of your life. Th e only thing better than a healthy, happy retirement is a tax-free retirement.
With government spending seeming to have no limits, the consequences of the future tax burden are severe. Targeting a low or zero percent tax bracket for retire-ment will let you enjoy your own money.
First, let’s examine the three types of tax portfolios that exist now.
1. Th e taxable portfolio: Consists of investments such as stocks, bonds, mutual funds, money market and CDs. Typically owners pay taxes on these investments every year as they grow. So, why have them? Th ey provide liquidity needed for emergencies or unexpected circumstances. Financial experts generally agree you should have about six months of funds to cover unexpected expenses.
2. Tax deferred portfolio: Taxed as ordinary income upon distribution, it will be most eff ected by the increase in tax rates over time. Tax deferred portfolios consist of:
• IRA. If your goal is the zero percent tax bracket, allowing your IRA to grow un-checked can thwart eff orts to reach the zero percent tax bracket. Ask you CPA what your standard deduction is and what your personal exemptions are.
Let’s say it totals $20,000. You could therefore withdraw up to $20,000 from your IRA without incurring taxes as long as you are at least age 59½.
A married couple retiring today (absent any other tax deductions) has a standard deduction of $11,900 (2012 tax year) and personal exemptions of $3,800 each. Th erefore, they can withdraw up to $19,500 from their IRA without paying taxes. Determine how many years you have to retirement. Add 3 percent for infl ation to target the amount of money you want to have in your IRA to off set what you will be required to start taking at age 70½ when required minimum distributions begin. If you anticipate your distributions will be higher than the combined standard deduction and personal exemptions, consider systematically converting portions of your IRA to a Roth. Yes, you will pay taxes now but it will enable you to have a tax-free distribution at retirement.
• 401(k). Because many employees receive matches from their employers, it’s easy for them to routinely allocate all of their retirement dollars to this account. By growing this account through excessive contributions, you compound the same tax problem experienced with the IRA.
Th e solution is to consider contributing up to the employer match but not more. Th e downside is you will lose tax deductions while
working. However, the purpose of a retirement account is not to receive tax deductions but to maximize cash fl ow in retirement, when you can least aff ord to pay taxes.
3. Th e tax-free portfolio. Th ere are two qualifi ca-
tions, it must actually be tax-free from federal, state and capital gains taxes and distributions from the portfolio should not count against the Social Security tax threshold. As a caveat, municipal bonds, widely renowned as tax-free investments, fail on both counts. So, what’s left?
Roth IRA • Contributions up to basis can be
withdrawn pre-59½ with no penalty• Growth on contributions can be
withdrawn tax free after 59½• Distributions do not cause Social
Security to be taxed• Th ere are no required minimum
distributions at 70½.• You may contribute $5,000 per year
under age 50 and $6,500 age 50 or older to your Roth
• You can convert any amount of your existing 401(k) or IRA to a Roth at any age
Cash Value Life Insurance• Death benefi t passes to heirs tax-free• Dollars can be distributed pre-59½
without penalty• Th ere are no required minimum
distributions at 70½• Contributions are tax-deferred• Distributions can be tax free and cost
free through a combination of withdrawals to basis and zero percent loans on growth.
• Th ere are no contribution limits• Th ere are no income limitations• Distributions do not cause Social
Security to be taxedA successful accumulation strategy will
enable you to draw tax-free streams of income from a Roth IRA, Cash Value Life Insurance and a traditional IRA (up to the standard deduction and personal exemp-tions) as well as Social Security. Th at should put in the zero percent tax bracket, giving you peace of mind and protection even in the fact of higher taxes in the future.
Contact Susan L. Moore Vault, president
of Moore Financial Strategies, at susan@
moorefs.com or (520) 296-4464. Moore Vault
hosts “Safe Money Strategies” Saturdays from
7-8 a.m. on KNST 790-AM and noon-1 p.m. on
the Voice KVOI 1030-AM.
SUSAN L. MOORE
TUCSON STOCK EXCHANGEStock market quotations of some publicly traded companies doing business in Southern Arizona
Company Name Symbol Apr. 3 Mar. 27 Change52-Week
Low52-Week
HighTucson companiesApplied Energetics Inc AERG.OB 0.02 0.02 0.00 0.02 0.08CDEX Inc CEXIQ.OB 0.10 0.07 0.04 0.01 0.51Providence Service Corp PRSC 18.20 18.46 -0.26 9.56 20.09UniSource Energy Corp (Tucson Electric Power) UNS 48.69 47.46 1.23 35.20 49.37
*Quotes in U.S. dollars, except Bombardier is Canadian dollars.
APRIL 5, 2013 19InsideTucsonBusiness.com
of our company for every customer,” said R.B. Harrison, Macy’s chief omnichannel offi cer.
Macy’s is investing $35 million in the Goodyear center expansion. Once complet-ed, employment is expected to grow from 500 to 625 full-time jobs.
Th e bottom line, regardless of what Con-gress does, is to capture as much market share as possible from both traditional retail and online sales. Th e sales tax issue is neutralized.
“Our position is to serve customers no matter wherever, however and whenever they prefer to shop,” said Harrison.
Sequester eff ects In March, the federal government’s se-
quester that wasn’t supposed to happen hap-pened. Long before it began, the consensus was that it is bad budget policy: $85 billion in automatic, across-the-board spending cuts.
In an analysis of the sequester and its likely eff ect on the Tucson region’s real es-tate market, Ginger Kneup, owner of Bright Future Real Estate Research, pointed out two areas of concern. Th e policy likely will impact the Federal Housing Administration (FHA) and local jobs.
Th e FHA will reduce staff “who under-write and process FHA-backed loans and manage the sale of foreclosed properties.
INSIDE REAL ESTATE & CONSTRUCTION
Traditional retailers ready for online sales tax By Roger YohemInside Tucson business
Th e Marketplace Fairness Act, described as a bipartisan bill in Congress “to level the playing fi eld” for brick-and-mortar retailers, has a good chance of raising revenue for the federal government beginning with the 2014 budget. In late March, the bill received a strong vote of public support in the Senate.
Th e proposed federal law would signifi cant-ly expand the scope of collecting sales taxes from online retailers. Opponents contend such a law would hurt Internet sales and unfairly burden Web-based retailers with the adminis-trative costs of collecting taxes for states.
Proponents, including the International Council of Shopping Centers, like the bill be-cause it will close the tax-free loophole and cap-ture avoided tax revenue for struggling state budgets. To become law, the proposal requires ultimate approval by the House and Senate.
For the past two years, online sales taxes have been discussed at the annual Global Retailing Conference presented by the Uni-versity of Arizona Terry J. Lundgren Center for Retailing. Lundgren, CEO of Macy’s Inc. and a University of Arizona graduate, has taken steps to stay ahead of the issue.
“We are re-imagining the marketing pro-cess for the Macy’s brand,” he told attendees in 2011. With some 800 retail sites across the nation, Lundgren said that each of them, in a way, “already is an online fulfi llment center.”
Part of his re-imagining plan was execut-ed late last month with the announcement that Macy’s is expanding its online fulfi llment center in Goodyear, west of Phoenix. About 360,000 square feet of space will be added to the 600,000 square-foot facility that opened in 2008. It is the retailer’s fourth major na-tional fulfi llment center and construction is set for completion in spring 2014.
Th at move will compliment Lundgren’s idea to re-confi gure existing brick-and-mor-tar stores.
About 500 Macy’s stores “will be equipped to fulfi ll orders by the end of this year, handle customer orders placed online, as well as ship products to customers who shop in stores that may not stock the specifi c product they need. We can access the total inventory
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4/2/2013
Fewer people equals slower processing time,” said Kneup.
“My other concern with the macro-eco-nomic policies is related to government jobs, both direct and indirect,” she said. “Sequestration takes a broad swipe at de-fense spending which will directly impact the support and staffi ng of Davis-Monthan Air Force Base and indirectly result in fewer big government contracts with Raytheon.”
Raytheon Missile Systems, with 11,500 employees, was the No. 2 largest employer in Southern Arizona last year on Inside Tuc-son Business’ Book of Lists. Davis-Monthan, at 10,330 employees, was No. 3.
“Th e strength in Raytheon’s employment is not just in size, but quality. Th ese high-pay-ing jobs support home ownership at the move-up level and above, right where the new construction home is at this time,” she said.
In Kneup’s view, there is a simple solu-tion to the federal budget cuts: grow the lo-cal economy with higher-paying jobs in the private sector.
Housing tidbitsJonathan Roof, vice president at Private
Banking/Wealth Management Group at Mu-tual of Omaha Bank, likes to talk economics, statistics and housing. Recently, he shared some of these tidbits about real estate:
• Statewide, new home builders have re-covered from the market low of September 2011. At that time, new homes accounted for 5 percent of sales. Now it’s 12 percent.
• Nationally, Lennar Corporation has been producing about 500,000 homes an-nually in recent years. To keep up with ris-ing demand, CEO Stuart Miller said Lennar could increase to 1.25 million a year under certain conditions.
• In the Tucson region, improvements are solid in all price segments. For Febru-ary, there was a 3.14 month supply of homes priced under $140,000. It was 3.75 months
for homes priced from $140,000 to $250,000. And 7.4 months for homes priced from from $250,000 to $500,000. Th e amount of inven-tory has shrunk about 9 percent in each price point from January.
• Purchasers of vacation and second homes in the region were key factors, especially for lower-priced homes. Most of these buyers came from the West, Midwest and Canada.
Roof, based at 4514 E. Camp Lowell Drive, expects “continued improvement” in the near term. As mortgage rates remain near historic lows, mortgage aff ordability will stay high.
Sales and leases• Arizona Institute of Urology leased
2,983 square feet at 4811 E. Grant Road, Suite 261, from Crossroads Canada LLC, represented by Andy Seleznov, Larsen Bak-er. Th e tenant was represented by James Robertson Jr., Realty Executives.
• National Vision Inc. leased 2,530 square feet at the southwest corner of Inter-state 19 and Irvington Road in Tucson Spec-trum, from DDR, represented by Nancy Mc-Clure and Jayme Fabe, CBRE. Th e tenant was represented by Jeff Zellet, Picor Com-mercial Real Estate Services.
• Crossroads Community Baptist Church leased 2,424 square feet at 3855 S. Evans Blvd., Suite 405, from Ajo/Evans Business Park LLC, represented by Jeff Zellet and Pat Welchert, Picor Commercial Real Estate Services.
• Stewart Title and Trust leased 2,200 square feet at 3865 E. 34th St., Suite 108, from A&P Investments, represented by Rob Glaser, Picor Commercial Real Estate Services.
• Staff Matters Inc. leased 1,750 square feet at 2251 E. Grant Road from Arroyo Col-orado LLC. Th e tenant was represented by Ian Stuart, CBRE.
• Subway leased 1,606 square feet at 1990 E. River Road, Suite 120, from La Chol-la and River Road Associates LLC, repre-sented by Craig Finfrock, Commercial Re-tail Advisors.
• Progect Advertising LLC leased 1,600 square feet at 326 S. Wilmot Road, Suite B220, from Adobe Offi ce Investments LP. Th e transaction was handled by Andrew Sternberg and Robert Nolan, Oxford Real-ty Advisors.
• Laboratory Corporation of America leased 1,540 square feet at 698 E. Wetmore Road, Suite 350, from First Avenue/Wet-more Offi ce Plaza LLC, represented by John Yarborough, Romano Real Estate.
The inventory of homes for sale in the Tucson region continues to decline across all price points.
20 APRIL 5, 2013 INSIDE TUCSON BUSINESS
Th is week I’d like to ask a favor. It has to do with what you want from Inside Tucson Business. In these days of technological breakthroughs and new gadgets, how you get information is changing faster than ever.
Is Inside Tucson Business delivering the information you want?
We’ve done surveys and we’ll probably do more. But fi rst I’d like to ask you, our readers, to give me some feedback.
I hope you’ll take some time to look over an issue of Inside Tucson Business if you’re reading this in print or view a few days on the www.InsideTucsonBusiness.com website. I mean really take a critical look.
What do you think of the news stories? In print we’re doing reports about trends and not so much spot news. Are there certain business sectors where we’re missing? Do we focus too often on certain areas?
Are we devoting too much to opinions? I was reluctant to do too much in the way of opinions when I took this job in November 2004 and I keep coming back to the idea of reducing the number of columns.
Certain features appear every week. Is that too often for things such as real estate and construction or media? Each week Matt Russell and Herb Stratford off er us some diversions of things to do outside the offi ce with their restaurant and arts and culture columns. Do any of these make a diff erence in your reading habits?
Th e printed edition of Inside Tucson Business has a regular feature called “Good News” highlighting positive happenings for the region introduced during the recession and another called “Insider” containing information from sources not normally reported in other news media. Have they outlived their purpose?
Each week we carry business public notices covering bankrupt-cy fi lings, foreclosure notices and federal, state and mechanic’s liens. Do you read them? Do you care? We’re about to add listings of new business fi lings, are you interested in seeing those?
Each week — this one excepted — we’ve done a profi le on a business. Usually we tie them to the Lists that are published that week. We’ve got a waiting list of businesses to be profi led but I’ve been told by a consultant they can appear “too soft” and may not be the kind of information readers want.
We also have features that rotate through each month such as Mary Peachin’s feature on Tucsonans who’ve earned a place in history for their instrumental work in our region’s development, Sam Williams’ columns on sales, Dave Tedlock’s columns on technology, Patrick McNamara’s “Next Generation” feature on things being developed in Tucson and one I write about business travel news pertaining to Tucson. I know the online versions of these columns get read but what would happen if we took them out of the printed Inside Tucson Business? Should some appear more often?
What I’m saying is anything and everything is on the table, both in the way of adding features and getting rid of some readers consider marginal.
At your convenience, please send me an email — the address is at the bottom of this column — with your thoughts. My goal is to compile the common threads into something we can evaluate further.
As this region’s only regular business-to-business news publica-tion, we want Inside Tucson Business to deliver what’s most important to business leaders. I look forward to hearing from you, good or bad.
Healthy banks = healthy region, right? As sluggish as the recovery of the Tucson economy
seems, we note that in the midst of fi nancial chaos and bank closures in Cyprus, a report out at the end of March said that just four banks in the U.S. had failed in the fi rst quarter of this year. We’ve had it pretty good with our banks in Tucson as well.
Th at’s not to say that getting a loan is necessarily any easier but there is satisfaction in knowing that our fi nancial institutions have weathered the past fi ve years better than in other parts of the country.
In fact in that time, federal regulators shut just one bank operating in Tucson and that was way back in July 2008 when 1st National Bank of Arizona was shut down.
Th e Scottsdale-based bank had two offi ces in Tucson that were shut down on a Friday afternoon and the following Monday reopened as branches of Mutual of Omaha Bank.
At the time, bank closings weren’t the routine. It was just the sixth bank closure in the U.S. that year.
Th e following year 21 banks were shut down across the U.S. in just the fi rst quarter of 2009. Regulators closed 41 banks in the fi rst quarter of 2010, 26 in the fi rst quarter of 2011, 15 in 2012 and now just four in the fi rst quarter of 2013.
Again, not one of them — or any bank closure since then — has involved a bank operating in the Tucson market.
In fact, quite the opposite. In 2012 it was Tucson-based Commerce Bank of Arizona that was tapped by the Federal Deposit Insurance to take over the deposits of a failed bank in Mesa in 2010. Th en in February, First Scottsdale Bank announced it would acquire Com-merce Bank, taking the latter’s name in deference to the name that doesn’t sound so locally confi ning.
While Tucson may lose a home-grown bank head-quarters, the move brought former Tucson banker John P. Lewis out of retirement to run the Southern Arizona offi ces. Th ere is also confi dence for customers in that First Scottsdale Bank was one of 359 banks in the U.S. to
earn a perfect score in a measure of bank safety done in 2012 by MSN Money.
Speaking of Lewis, his Southern Arizona Community Bank was acquired in 2010 along with Bank of Tucson, run by Mike Hannley, by Los Angeles-based Grandpoint Capital Inc. and a group of Tucson-based investors lead by auto dealer Jim Click.
Both of the Tucson banks were fi nancially strong and stable but under a cloud of a larger holding company that tried to shed assets as fast as it could to raise money and eventually fi led for Chapter 11 bankruptcy protec-tion in 2012.
In the meantime, Bank of Tucson has regained a fi ve-star superior ranking from the independent fi nancial research fi rm, Bauer Financial.
Bank of Tucson shares that fi ve-star status with Bank of the West, Great Western Bank and Mutual of Omaha Bank, along with credit unions Pima Federal, Pyramid Federal, SunWest Federal and Vantage West.
Just as important, reports such as those from Bauer Financial show that fi nancial institutions in the Tucson region are continuing to get healthier.
Th ere’s also satisfaction in being away from LaGrange, Ga.; Chicago; Andover, Minn.; and University Place, Wash., locales that were homes to this year’s four bank failures.
Bankers and those running some other fi nancial institutions have taken heat from those who say they aren’t lending money. Th eir counter-argument has been a lack of demand from qualifi ed borrowers. Not to mention there is increased pressure from federal watchdogs.
But judging from the health of many fi nancial institutions in the Tucson region, we weren’t as bad off as some other places.
We should feel better about the fi nancial health of our region and its lenders, shouldn’t we?
APRIL 5, 2013 21InsideTucsonBusiness.com
OPINIONWAKE UP, TUCSON
See past rhetoric, keep your eye on the ball I know your news cycle is dominated by
gay marriage and guns. Ever since Shaun McClusky — we call him Cap’n Chaos on our radio show — started raising funds for the Armed Citizen Project, it has been a veritable gun control Wrestlemania. Tucson was once again on “Th e Daily Show” Monday. Mark Kelly is making embarrassing videos about buying guns by using his wife as a publicity prop.
As Bill Murray said in “Ghostbusters,” “Cats and Dogs living together. Mass hysteria!”
Two folks who have been front and center on advocating for more gun control are Tucson City Council members Steve Kozachik and Karin Uhlich. Th ey are two of the three council members running for re-election.
Th is week, Ms. Uhlich was censuring the latest NRA report about school safety. And while it’s fun to see Kozachik hanging out with the crew from “Th e Daily Show” and wrapping liberal talk show host Alan
Colmes, there are some issues getting put on the back burner.
It’s easy to attempt to take a moral high ground on the gun issue, while waffl ing on important municipal issues.
Let’s start with the city’s pension problems. Th e unfunded pension liabilities have exploded to $1.07 billion. In fi scal year 2010-2011 it was about $700 million and the year before that it was about $600 million. Th is is for all of the city’s pension plans.
City Finance Director Kelly Gottschalk must be freaking out trying to fi nd the money to make the required contributions.
It makes you wonder, when council members talk about caring for employees, do they mean only those who are currently
on the payroll?Now, let’s head over to the police
department where the city used to have about 1,200 offi cers. Now, the number is down to around 950. By most accounts the department is about 150 to 165 offi cers short of the minimum for proper staffi ng.
Word is spreading that to meet its budget shortfalls, cops will be asked to do more with less. Further cuts might prevent the department from rescuing a council member’s drunk chief of staff from a street median. At least they wouldn’t miss being cursed at by said rescuee.
Th en there’s the discussion that’s not happening about increasing the percentage of money going into the city’s transporta-tion budget to fi x streets and potholes. Yes, voters approved $20 million a year for fi ve years to overhaul roadways that have fallen into disrepair, but that’s only a drop in the bucket to fi x the deterioration that’s happened because the city has failed put money towards maintaining streets.
Local electeds continue to whine about a reduction in state Highway User Revenue Funds but that’s getting old, and it’s not believable when other municipalities in Arizona are dealing with the same cuts. Th e diff erence is those other electeds put a priority on street maintenance while Tucson pays for consultants and Kidco.
Th ese decisions can be diffi cult. Th ey involve some big numbers and multi-syl-labic words.
But it’s a lot easier to get on a soapbox and pontifi cate about gun control, regard-less of whether it will have any impact.
It’s important to see past this rhetoric. Instead voters should concentrate on the issues they know will lead to a resurgence for Tucson.
Keep your eye on the ball.
Contact Chris DeSimone at [email protected]. DeSimone co-hosts “Wake Up Tucson,” 6-8 a.m. weekdays on Th e Voice KVOI 1030-AM.
GUEST OPINION
Library brings small businesses, nonprofi ts together to talk technologyWhat if your library hosted a free
monthly forum where people who run small businesses, nonprofi ts and other organizations could get together and talk informally about emerging technologies?
What if you could meet other Tuc-sonans who have actually tried some of these tools and strategies?
Catalyst Café is a series of meet-ups pro-vided by Pima County Public Library. Th e topic changes every month, but the com-fortable, informal vibe remains the same.
And many people are taking note.Mia Schnaible from the Arizona In-
ternational Film Festival and the Screen-ing Room participated on February’s panel, titled “Build the Buzz: Launch-ing a Business with Social Media,” and she had a blast. “It was a terrifi c shar-ing of ideas and solutions,” Schnaible said. “I picked up some tips, too.”
In its fi rst year, the library’s Catalyst Café has presented panels on crowdfund-ing tools, social media best practices, and using Pinterest as a branding tool. An expert in “gamestorming” presented a lively discussion to 40 participants to explain the new way for organizations to brainstorm ideas. We learned how to incor-porate games involving index cards, sticky notes, and whatever creative juice you bring to the table to get the ideas fl owing.
After attending one workshop, Debbi Wainright located a partner for her own community café and is in the process of establishing her own nonprofi t organiza-
tion. “Th e Catalyst Café workshop is one of the many programs at the library that has helped me start a community café,” Wainright said. “But the social media café session really helped me step things up.”
Th e key seems to be about bringing people together.
At the Catalyst Café on Tuesday (April 9), a panel of Tucson freelance writers, soft-ware entrepreneurs and social media man-agers will be coming to the Joel D. Valdez Main Library, 101 N. Stone Ave., to discuss what they learned at the South by South-west (SxSW) Interactive conference held in March in Austin, Texas. SxSW Interactive brings together software developers, entre-preneurs, nonprofi t organizers, and social media managers who are looking for ways to put technology to work for social good.
It’s not a coincidence that SxSW inspired the library to launch a program targeting businesses and nonprofi ts. Th e conference is also well-known for be-ing hip, casual, and the place to meet some of the best and brightest thinkers and doers in the tech and media world.
Catalyst Café off ers a chance for members of the community to see the workings of other organizations,
says Andrew Lenards from iPlant Col-laborative, a group that is focusing on innovation in the plant sciences.
Lenards has presented at Catalyst Café and believes that learning how others apply something new and then modifying it for yourself can make a big diff erence. “If you’re looking to use a new tool or a new process, get-ting you from zero knowledge to ‘get-ting by’ is often the toughest obstacle.”
Learning something new isn’t al-ways the only motivation for Cata-lyst Café participants. Th ere’s also something to be gained about shar-ing your experiences with others.
Marge Pellegrino, who works with Th e Owl & Panther Project, recently sat on a panel to discuss the organization’s suc-cess with online fundraising. Th e nonprofi t helps refugee families from Iraq, Nepal, Somalia, Ethiopia, Guatemala and Congo express themselves through creative arts including poetry, art, drama and music.
“I left feeling enriched by oth-ers’ experiences,” says Pellegrino, who also enjoyed meeting some amaz-ing folks from the community.
Th e library has always been a place where you could fi nd information. Now, it’s also a place where people who have small businesses or run nonprofi t orga-nizations — or are just thinking about it — can come together to share informa-tion and experiences with each other.
A few tidbits that Catalyst Café
participants have learned:• Crowdfunding — a new way to raise
money from your friends, fans, and com-munity — isn’t just for musicians and game designers. Th ere is a fundraising platform for just about anyone, includ-ing businesses and organizations.
• Crowdfunding does require a great idea or an engaging story. It also works best when you already have a solid online network of friends or fans.
• Many Tucson businesses and nonprof-its are rocking how they use social media.
• Facebook and Twitter can be used to build awareness of a new business and engage potential customers, espe-cially when the planning, renovation, and progress are shared in real time.
• Social media can level the playing fi eld for a small business because authenticity and the human touch are so important in building readership and relationships.
Liz Danforth, an artist who’s been an entrepreneur for nearly 40 years, says that she hasn’t seen the environment change as fast as it is these days. “Catalyst Café draws people out of their silos for cross-fertiliza-tion of knowledge, technologies and ideas.”
Phone: (520) 295-4201Fax: (520) 295-40713280 E. Hemisphere Loop, #180Tucson, AZ 85706-5027 Internet: www.azbiz.com
STAFF
InsideTucsonBusiness.com
• Letters to the editor — Opinions on business-related issues or coverage of issues by Inside Tucson Business are encouraged and will be published. Submit letters to the editor via email at [email protected]. Letters also may be mailed to Letters to the editor, Inside Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087. Letters must include the writer’s name and telephone number. Inside Tucson Business reserves the right to edit and may not print all letters that are received.
Make the news
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Yes, from both boards 60.6%Just from TUSD 18.2%Only from PCC 15.2%No, neither. 6.1%
Would you work to recall the TUSD Board Members and/or the Pima Community College Board Members?
How prepared is American business?One of the single largest marketing
opportunities for American businesses is to target the Hispanic market. Th ere are numerous studies, including the 2010 U.S Census, that detail this fast growing dynamic demographic. In Pima County, projections indicate that by 2030 a majority of residents will be Hispanic.
During the recent economic downturn, as staff s became leaner and resources tight-ened, corporate and small business dialogue focused on new revenue genera-tion. At the Tucson Hispanic Chamber, our team quickly realized businesses — regard-less of size — needed information and advice on this market opportunity.
Firstly, the Hispanic market is diverse and is not monolithic. In Arizona, 85 percent of the Hispanic population is Mexican American. In other parts of the U.S., there are larger percentages of people who are of Cuban or Puerto Rican descent.
Th e Hispanic community is young, com-pared to the general market. In Pima County, the average age for Hispanics is 27.5 and for non-Hispanics it’s 45.8 according to 2008 Census Bureau numbers.
Secondly, reaching the Hispanic market is not simply translating an English-lan-guage brochure into Spanish. Building a culture competency within the business is key — from customer service, to the selling
cycle, to the retention of customers. Each step needs to be analyzed to determine business readiness as it relates to the Hispanic market.
Look at your employees, especially leader-
ship. Do they refl ect the community your business is trying to reach?
A national survey of Hispanics included in last year’s Datos: Tucson report found that 66 percent say very few brands genuinely care about the state of their communities, but 79 percent say compa-nies that make sincere eff orts to be a part of their communities deserve their loyalty. So how involved is your business in the Hispanic community? Are you aware of the issues that impact Hispanics? Is there a diff erence in the way issues impact Hispanics versus others?
For example, as the national unemploy-ment rate has slowly come down to 7.8 percent, the rate in the Hispanic commu-nity remains higher, at about 9.4 percent. Certainly, this may be a function of educational attainment, another area in
which Hispanics lag the general popula-tion, but businesses can use interns to help grow awareness within the Hispanic community. (Read more about the Tucson Hispanic Chamber’s internship program on our website). And when conducting any employment interview it’s worthwhile to value diversity and the ability to speak Spanish.
As the U.S. economy recovers, a key indicator of growth has been home ownership. Home building and develop-ment have been the backbone of Arizona’s economy over several decades. Th e Datos: Tucson report, research conducted by the Arizona Hispanic Chamber and the Tucson Hispanic Chamber, found that Hispanics will drive future home ownership in Tucson, representing 65 percent of new home owners from now until 2017.
Member businesses within the Tucson Hispanic Chamber serve as vendors and service providers to the real estate markets. How prepared are businesses in real estate to reach Hispanic families as consumers?
To further the conversation, the Tucson Hispanic Chamber is hosting a Real Estate and the Hispanic Market Forum from 11:30 a.m. to 1:30 p.m. April 18 at Viscount Suites, 4855 E. Broadway. Residential and com-mercial real estate projections will be presented by experts and the program will
include discussion of the impact on the Hispanic market. Th e event is open to the public — cost is $35 or $25 for chamber members. Register online at www.tucson-hispanicchamber.org.
As business leaders reassess their strategic plans and determine the value of the Hispanic market, it’s important to answer these questions:
Where are marketing dollars being spent?
Does the leadership of the business refl ect the diversity of the community?
If not, what changes should be made? What operational changes should be
considered to attract Hispanic consumers? A good place to start the research is the
2012 Datos: Tucson report. It can be downloaded for free from the Tucson Hispanic Chamber’s website.
Contact Lea Márquez Peterson,
president of the Tucson Hispanic Chamber of
Commerce, at president@tucsonhispanic-
chamber.org . Th e Tucson Hispanic Chamber
is the largest Latino business organization in
Arizona, with offi ces in Tucson and Hermosil-
lo, Sonora, and focuses on helping businesses
reach the fast-growing Hispanic market. Its
website is www.tucsonhispanicchamber.org.
LEA MÁRQUEZ
Next week’s poll: Regional leaders have begun to focus on economic partnerships with Mexico. Do you
think that Mexico can be a strong trading partner for Southern Arizona?
APRIL 5, 2013 23InsideTucsonBusiness.com
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