inside tucson business 1/11/13

A skinny dipForeclosure notices take a little dive

9

Amnesty back on the agendaImmigration reform reconsideration likely by Congress

Page 17

An inside jobThe costly crimes of employee theft and financial fraud

Page 5

Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • JANUARY 11, 2013 • VOL. 22, NO. 32 • $1

A REAL GEM OF A GHOST TOWN

PAGE 10

Ruby sparkles as authentic Old West

‘Enough’: Gabrielle Giff ords speaks out against guns By Patrik JonssonTh e Christian Science Monitor

Former U.S. Rep. Gabrielle Gif-fords, who was shot in the head during a mass shooting that killed six others Jan. 8, 2011, stepped into the national spotlight on the anniversary of that to off er a one-word opinion about gun violence in this country: “Enough.”

Th e comment was part of an inter-view that aired on ABC News in which Giff ords and her astronaut husband Mark Kelly announced the formation of a group intended to infl uence the national debate on gun violence and counter the political and fi nancial in-fl uence of the National Rifl e Associa-tion (NRA). Th e goal, according to the

couple, is to ensure “legislators will no longer have reason to fear the gun lobby.”

Th e national tragedy that played out Dec. 14 at Sandy Hook Elementary School in Newtown, Conn., has shifted the tenor and substance of the debate over the Second Amendment, which guarantees the rights of Americans to own and carry fi rearms, for the fi rst time in decades.

Th e decision by Giff ords, herself a gun owner and a one-time defender of the Second Amendment, shows a sense of urgency in capitalizing on post-Newtown emotions. Th e Obama administration, too, is trying to move quickly – this week initiating conversa-tions with gunmakers, Hollywood pro-

ducers, gun-crime victims, and gun-rights groups about how to proceed. But the eff orts risk exposing cracks in a notably fractious gun-control move-ment.

In evidence of improving coordi-nation, Giff ords and Kelly traveled both to Newtown to meet with parents and to New York to discuss their plans with Maor Michael Bloomberg before deciding to launch their group, which is called Americans for Responsible Solutions.

In the ABC News interview, Kelly says he almost “lost it” when a New-town parent showed him a picture of one of the slain Sandy Hook fi rst-grade students.

“In response to a horrifi c series of

shootings that has sown terror in our communities, victimized tens of thou-sands of Americans, and left one of its own bleeding and near death in a Tuc-son parking lot, Congress has done something quite extraordinary – noth-ing at all,” Giff ords and Kelly wrote in an opinion column in USA Today.

Unlike other mass shootings, in-cluding the one in Tucson, the New-town massacre of 20 school children and six staff ers appears to have actual-ly changed American opinions on gun rights and gun control. On Dec. 20, a CBS News poll found an 18-point surge in the share of Americans who support more fi rearms restrictions — a fi nding supported by a Pew Research poll con-ducted after the Newtown shootings.

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2 JANUARY 11, 2013 INSIDE TUCSON BUSINESS

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JANUARY 11, 2013 3InsideTucsonBusiness.com

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EDITION INDEX

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

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

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NEWS

Chambers and industry groups gear up for Legislative session

By Patrick McNamaraInside Tucson Business

With the Arizona Legislature set to start a new session next week, business and trade associations and chambers of com-merce are gearing up to try persuade law-makers to address their concerns.

Investments in infrastructure, creating a more business-friendly tax policy and improvements to education are common causes among many groups.

Th e region’s largest chamber, the Tuc-son Metro Chamber, which has 1,350 members, set an agenda that includes improving the equity of the public-school funding formula and continuing to sup-

port the construction of the Union Pacifi c rail yard project near Picacho that has been under discussion with state leaders for more than fi ve years.

“Th at project is huge,” said Robert Me-dler, director of government aff airs at the Tucson Metro Chamber.

Th e proposed 900-acre rail yard has the potential to create a signifi cant shipping logistics hub for Southern Arizona.

It would include about 75 train tracks at the widest point of the switching yard and stretch six miles long and a mile wide.

In addition to the boost to the construc-tion sector, the rail switching yard brings the possibility for commercial and indus-trial expansions and thousands of jobs to

the area. Th e project has been held up because

the land the Union Pacifi c wants is in a holding of the Arizona State Land Depart-ment. State budget cuts in recent years have diminished the Land Department’s staff resources so processes are taking even longer times to complete. Th ere have also been debates over the value of the prop-erty.

For education, the Metro Chamber wants to support a new model for funding and reinstate full funding for Joint Techni-cal Education Districts (JTEDs), which are coalitions among school district to provide career and technical education.

CONTINUED ON PAGE 6

AAA: Gas prices will be lower throughout 2013

Gasoline prices this year should be lower than they were in 2012 due to increased oil production and lower demand, according to AAA Arizona.

In the Tucson region, gas prices have re-mained steady for the start of the new year, after steadily falling for 14 consecutive weeks. Th e average price for a gallon of regular this week was $2.86½, up from $2.85 a week ago. Tucson continues to enjoy the lowest average price in the state, according to AAA.

“Given market factors, AAA is predicting that prices will remain high this year, but are likely be less expensive than 2012, barring unforeseen events,” said Linda Gorman, di-rector of communications and public aff airs for AAA Arizona.

Prices are expected to rise steadily through the spring as is typical for this time of year because of seasonal demand increases and refi neries’ switch-over to more expensive summer-blend gasoline.

Following a late-spring peak, prices should drop during the fi rst half of the sum-mer before rising again in advance of the Gulf Coast hurricane season and the switchover to winter-blend gasoline.

Nationally, the annual average price of gasoline in 2012 was the most expensive on record at $3.60 per gallon, but the situation improved at the end of the year and gas pric-es now are lower than they were a year ago, a trend AAA expects to continue.

Ballot measure seeks tostop medical marijuana

An anti-drug group fi nanced by the Ari-zona Cardinals is organizing to help put a new ballot measure before voters that would rescind Arizona’s medical marijuana law and outlaw dispensaries.

Keep AZ Drug Free has endorsed a bill put forward in the Legislature asking voters to re-peal the medical marijuana legalization mea-sure that was passed in November 2010.

Th e group says its largest fi nancial con-tributor has been the Arizona Cardinals foot-ball team, which donated $10,000 during the 2010 campaign.

Th e state’s medical marijuana law has faced legal and bureaucratic hurdles from Gov. Jan Brewer, Maricopa County Attorney Bill Montgomery and others who are op-posed to it. Th e fi rst two dispensaries in the Tucson region have opened just within the past few weeks.

Th e new bill (HCR 2003), asks voters to re-peal the law eff ective in 2014.


NEWS

Pima County ‘tops off ’ new court complexBy Roger YohemInside Tucson Business

About 125 spectators watched as Sundt Construction ceremoniously “topped off ” Pima County’s new down-town courthouse complex on Monday by raising the last steel beam into place on the seven-story structure, symboliz-ing completion of the tower’s foundation and framework.

Construction now will focus on en-closing the 290,000 square-foot complex at 300 N. Stone Ave. Before the beam was placed 140 feet above ground, members of the Pima County Board of Supervisors, and several court judges and construc-tion workers signed the beam.

“Sundt is honored to be constructing the complex. In a time when the Tucson construction industry is in need of work, this project is an excellent example of a public jurisdiction benefi tting our lo-cal economy,” said senior project direc-tor Kurt Wadlington. He added that the county is “maximizing the value received for public funds through historically low construction pricing.”

Sundt’s $48 million contract is for the tower’s core and shell. Th e project will employ about 520 construction workers and use 5.6 million pounds of steel.

Work began last February with tenant

improvements to begin this fall. Occupancy will be in 2015 as the new home for the Pima County Consolidated Justice Court.

“Th e new courthouse is an important civic contribution to the revitalization of downtown Tucson,” Wadlington said.

Pima County Administrator Chuck Huckleberry, left, and Sundt project director Kurt Wadlington “sign off” on the building’s last steel beam.

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Clarifi cation

The Remembering Tucson feature by Mary Levy Peachin that appeared in the Jan. 4 issue made reference to Lee Levitz, widow of furniture store owner Sam Levitz, living with her daughter Kandie Vactor, son-in-law Drew Vactor and his mother Alma Vactor, the subject of the feature. At the time the feature went to press, Inside Tucson Business was unaware that Lee Levitz had died Jan. 1.

The county’s new courthouse is designed to meet LEED (Leadership in Energy and Environmental Design) standards with energy and water-effi cient features, and other “green” technology. The fi nal beam (right) was placed 140 feet up on the 7th fl oor.

Buff ett fi rm acquires Hendricks & Partners

Hendricks & Partners, a Phoenix-based multifamily investment banking fi rm with 38 offi ces across the U.S. including one in Tucson, has been acquired by a Warren Buff ett-backed fi rm in Pennsylvania for an undisclosed price, according to a company statement Wednesday.

Th e fi rm was taken over Dec. 31 by Berka-dia Commercial Mortgage LLC, a joint ven-ture between Buff ett’s Berkshire Hathaway Inc. and Leucadia National Corp. that off ers commercial real estate lending and servicing.

Th e acquisition includes all of Hendricks’ offi ces and more than 180 apartment profes-sionals nationwide, which Berkadia hopes will propel its expansion eff orts, the state-ment said.

Although the fi rm plans to remain head-quartered in Phoenix, it is now operating un-der the name Hendricks-Berkadia, according to the statement. Th e new structure forms an-other business unit with apartment real estate advisors alongside Berkadia’s other mortgage lending operations.

Don Hendricks, who founded Hendricks & Partners in 1995 and was chairman and CEO, is CEO under the new company structure and an executive vice president with Berkadia.

Th e Hendricks & Partners offi ce in Tucson is at 3567 E. Sunrise Drive, Suite 237.

Berkshire Hathaway also owns the Tuc-son-based real estate fi rm Long Companies.

Inside Tucson Business on your driveway next Friday

For most subscribers of the print version of Inside Tucson Business, this is the fi nal is-sue you will receive in the mail. Th e next copy you receive, next Friday, Jan. 18, should land on your driveway early in the morning, along with any other newspapers you receive.

If you have not changed your delivery address, you still have time to do so, but do it quickly, says Laura Horvath, circulation manager.

Send an email to [email protected], put change my address in the subject line and include your mailing address as it appears on the mailing label of this week’s issue, along with the address where you’d like to receive your copies starting next week.

Mail delivery via the U.S. Postal Service will remain an option but, unless you’re us-ing a post offi ce box or receive your copies outside the Tucson area, please specifi cally request that option.

You can do that by sending an email to [email protected] and put “ITB mail delivery” in the subject line and include the delivery address as it appears on your mailing label this week.

Please be aware that due to changes at the U.S. Postal Service, mail deliveries of Inside Tucson Business will be delayed, which is the reason for making the switch to direct home delivery.


By Roger YohemInside Tucson Business

Financial fraud starts small. If no one notices, the employee starts to take more.

Small businesses get hit harder with fraud and internal theft because they have fewer controls in place. Typically, they aren’t aware of their exposure to fraud and don’t have enough employees to split up the fi nancial duties.

Th at situation creates more high-risk opportunities like theft, embezzlement, skimming, payroll and fi nancial statement fraud, phony billing, misappropriation and the conversion of assets.

Some cases will never be discovered due to the variety of schemes, clever em-ployees and weak internal controls. And when fraud is found, it can be hard to iden-tify who did it and exactly what assets are missing.

“In today’s business world, yes, there is a bigger proliferation of fraud opportuni-ties. Outside the workplace, there are of-ten drug and alcohol abuse issues that af-fect people. Th ere is a growing importance of self-celebrity in society. People have greater job expectations and if they don’t receive it, it is easier for them to rational-ize theft. It’s called the fraud triangle,” said accountant Phillip Dalrymple, a certifi ed fraud examiner with R&A CPAs, 4542 E. Camp Lowell Drive.

“All these factors are part of human na-ture. For a business, the only thing they can control is the opportunity. How can I limit the fraudster’s opportunities?” he added. “In these economic times, a business can least aff ord theft and fraud. No company is immune.”

In small businesses with fewer than 100 employees, the typical loss from a “discov-ered” fraud is $140,000, according to the Association of Certifi ed Fraud Examiners.

“Undiscovered” fraud/theft losses cost companies about 5 percent of their rev-enue every year.

Most scams run for 18 months before being discovered. About half of victim-companies recover nothing from the fraud-ster who often is long gone.

As businesses head into tax return sea-son, Dalrymple emphasized the risk of fraud can be reduced in any-sized organi-zation. Prevention and deterrence starts by going beyond the routine auditing of an-nual fi nancial statements.

“Th e best way to combat fraud risk is to eliminate the opportunity. We advise pre-vention, to implement mitigating internal controls and create the impression some-one is always watching,” he said.

For example, no single “do it all” em-ployee should do purchasing and receiv-ing, payroll, make deposits, write checks

Financial fraud: the thieves inside your business

Breaking the Fraud Triangle

In the 1950s, criminologist Donald Cressey coined the term “fraud triangle” to explain why people commit fraud. Under his theory, three factors must exist for someone to commit employee theft or fi nancial fraud:

1. Motive (pressure): Th e need for money, such as fi nancial pres-sure from a gambling addiction.

2. Rationalization: Th e mind-set that justifi es the fraud, i.e., the company will never miss the money.

3. Opportunity: Th e business conditions that enable fraud to occur, such as weak or no internal controls, i.e., no one will discover the missing inventory.

Breaking the triangle is the key to reducing fraud. When any one factor is removed, the likelihood of fraud declines. Businesses have the most control over “opportu-nity,” so simply limiting this factor deters fraud.

Th e best prevention is to estab-lish a system of internal fi nancial controls; screen employees who have access to “desirable” assets; and initiate operating procedures that minimize the triangle’s “op-portunity” point.

PHILLIP DALRYMPLE

and post cash activity to the accounting system.

All cash reconciliations should be re-viewed by others. Owners should open bank statements personally before releas-ing the papers for processing.

Anyone with access to fi nancial and “desirable” assets and inventory must pass a strict background check. And “dedicat-ed” employees should be required to take vacation in full-week periods every year.

Dalrymple, a member of the Associa-tion of Certifi ed Fraud Examiners, noted that several local accounting fi rms have added the service in recent years. Due to the economy and changing societal stan-dards, “discovering fi nancial fraud is a natural off shoot of doing fi nancial audits. Often, fi nancial statement manipulation is done after the fact of journal entries.”

Two of Dalrymple’s more challenging cases involved investigating an Arizona municipality where the mayor was sus-pected of securing reimbursement for per-sonal expenses. And while conducting a routine audit of an insurance company, he discovered irregularities in their re-insur-ance procedures.

Last year, R&A was involved in four fi -nancial fraud cases and currently is work-ing on four others. As needed, the fi rm investigates to the level needed by the businesses to prosecute.

“Sometimes, the long-term employee who is totally trusted is the fraudster,” Dal-rymple said.

Contact reporter Roger Yohem at

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

“All these factors are part of human na-ture. For a business, the only thing they can control is the opportunity. How can I limit the fraud-ster’s opportunities? In these economic times, a business can least afford theft and fraud. No company is immune.”

This Week’s Good News All-Stars auditions

Th ere could be more scouts and other representatives of all 32 NFL teams than the 102 players on the roster for tonight’s Casino Del Sol College All-Star Game as graduating college seniors try-out to move on to the next level of playing football.

Th is is the second year of the game. Last year, 67 out of the 93 players who participat-ed made an NFL roster for training camp.

Good tickets are still available, as they say, ranging from $12 to $36. Kickoff is at 7 p.m. at Kino Stadium, 2500 E. Ajo Way.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

Tucson has less government In an age when plenty of people are calling

for less government, Tucsonans can take some solace in one measure that says we’re pretty far down the “too much government” scale.

David Miller, director of the Center for Met-ropolitan Studies at the University of Pittsburgh, in cooperation with Governing magazine has come out with a “metropolitan power diff u-sion index” that measure both the number of diff erent governments in an area administer-ing common services and each government’s related expenditures. Th e result is an indicator of how authority is divided within a region.

In this case, like golf, a lower score is bet-ter. Th e higher the score means there is more fragmentation.

Tucson comes in at 656 out of 942 metro areas with a power diff usion index of 2.56. Compare that to the highest score, 17.97 for the greater Chicago area. Several small cities came in with the lowest score of 1.

Wildcats’ worth Talk about big business. Th e University of

Arizona’s football team is worth $126.8 million. Impressively, that value grew 36 percent from $93.2 million a year ago.

Ryan Brewer, an assistant professor of fi -nance and researcher at Indiana University-Purdue University Columbus, analyzes the values of college football teams based on ex-penses, cash-fl ow, risk and revenues from ticket sales, broadcast rights and royalties. All Pac-12 schools saw sizeable jumps this year due main-ly to the conference’s new TV rights deals.

Probably not surprisingly, Oregon is tops among Pac-12 schools, valued at $264.6 million, up from $102 million. Arizona ranks seventh in the conference behind Washington, Colorado, USC, Arizona State and Stanford but ahead of UCLA, Utah, Oregon State, California and Washington State.


Medler said funding of JTED has been a concern for the chamber because of the program’s past successes. A 2010 report by the Arizona Department of Education not-ed that statewide JTED students have a 95 percent graduation rate, compared to less than 70 percent for non-JTED students.

During the 2011 legislative session, lawmakers cut funding for JTED. Th e cuts ended funding for fresh-man students in JTED programs.

“Not every JTED in the state is the same, and ours has been very successful,” Medler said.

Th e Tucson Hispanic Chamber of Commerce lists increasing trade with Mexico and retain-ing existing businesses and attracting new ones as a priority for the 2013 Legislative session.

To those ends, the Hispanic Chamber sup-ports changes to tax policy that would help increase revenue, ac-cording to the group’s Legislative Principles for 2013.

“We’re always look-ing at the tax burden on businesses,” chamber president and CEO Lea Márquez Peterson said. “It’s tough to balance the burden on business with the needs of the state.”

On increasing trade between Arizona and Mexico, Márquez Pe-terson said the group hopes the incoming Legislature stays away from controversial im-migration issues, which she said have in the past been hurtful to the state’s economy.

“We think going down the immigration path would not help Arizona,” Márquez Pe-terson said. “I think our state has learned from this.”

Th e group also wants to see greater invest-ments in job training and workforce development.

Another industry group, the Tucson Utility Contractors Association (TUCA), lists a re-evaluation of the Highway User Revenue Fund (HURF) allocation formula among its legislative priorities for 2013.

HURF money is used by local govern-ments to maintain transportation infra-structure.

State lawmakers were criticized over the past several years for enacting changes to the HURF distribution formula, giving a larger portion of the vehicle licensing and gas tax funds to support the Department of Public Safety (DPS). Cities, towns and county governments received a smaller share and therefore less money.

TUCA president and CEO Ramon

Gaanderse said the group wants to see the formula revert back to favor pavement maintenance eff orts. Or, Gaanderse said, perhaps the state should consider funding DPS from diff erent sources.

“Th at way DPS can still get its share,” he said.

He said the group also would like to see the Legislature look at the gas tax that pro-

vides the majority of HURF revenue. Th e state has charged the same 18-cent

per-gallon tax on gasoline since the 1990s. “I think it’s something that should be

discussed,” Gaanderse said. He noted that the cost of construction

material, which is closely tied to the price of petroleum, has increased.

“Th ere’s a larger issue here than people realize,” he said, con-necting the issue of HURF funding to the poor condition of roads in the Tucson region.

Gaanderse does not excuse local lead-ers for their roles in the dilapidated conditions of streets, saying local governments have ne-glected infrastructure and deferred mainte-nance for many years.

Th e Southern Ari-zona Home Builders Association (SAHBA) hasn’t fi nalized a spe-cifi c list of legislative priorities for the ses-sion, but president and CEO David Godlewski said the group plans to pay close attention to potential changes to transaction privi-lege taxes that Gov. Jan Brewer has explored through the Transac-tion Privilege Tax Sim-plifi cation Task Force.

In particular, Godlewski said the group has followed po-tential changes to state and local taxes on con-tracting activity.

“It would be a more simplifi ed for of taxa-tion,” Godlewski said.

State and local gov-ernments don’t impose a standard point-of-sale tax on contracting ac-tivity, instead taxes are set on a formula based on 65 percent value of the construction activ-ity. Th e construction trades have argued this creates a confusing sit-uation for business.

Godlewski also said, despite the changes

in the Legislature the November election brought, he thought the climate at the Cap-itol would remain business friendly.

“We have had for the past few years a Legislature that is pro-homebuilder,” he said. “I don’t think that will change much.”

Contact reporter Patrick McNamara

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

LEGISLATIVE AGENDAS >>Some of the issues business and industry groups in the Tucson region will be following in this session of the state Legislature include:

Arizona Technology Council• Enhance the existing Refundable Research and Development Tax

Credit by increasing the cap to $15 million from $5 million• Create a state-supported Arizona Investment Fund for investment

in early- and growth-stage technology companies. Greater Oro Valley Chamber of Commerce

• Accelerate pace of statewide highway and other road construction• Support restoration of Highway User Revenue Fund (HURF) funding

to roadway projects• Fund the state’s Medicaid program, the Arizona Health Care Cost

Containment System (AHCCCS), to maximize the number of insured and increase fi scal responsibility

• Support an equitable system of education funding• Streamline permitting processes

Tucson Hispanic Chamber of Commerce• Increase trade opportunities with Mexico• Improve educational standards• Invest in improvements to infrastructure vital to job creation• Support policies that reduce government regulation of business

Tucson Metro Chamber• Construction of the proposed Union Pacifi c railroad switching yard

near Picacho• Restore road repair money to HURF • Support eff orts to attract the F-35A Joint Strike Fighter• Support tax incentives for the fi lm industry • Encourage more trade with Mexico

Tucson Utility Contractors Association• Change the HURF funding formula• Support new penalties for metal theft

LEGISLATIVE SESSION CONTINUED FROM PAGE 3NEWS

PUBLIC NOTICESSelected public records of Southern Arizona bankruptcies and liens.

FORECLOSURE NOTICES Tri Pointe Tucson LLC (14.47%), Gregory R. Fretz and Anne B. Fretz (17.86%), William C. Kao and L.S. Kao (5.95%), Dana Denardi (12.97%), Paul F. Ward and Lynn C. Ward (5.95%), John C. Adams (4.46%), Patricia J. Rahn (2.26%), Rita L. Boren (7.86%), Brian D. McNay (22.86%) and Noel Singh and Sandhya Nath (5.36%) 6363, 6365, 6367, 6369, 6373, 6375, 6377, 6411, 6445 and 6451 E. Tanque Verde Road 85715 Tax parcel: 133-16-030E and 133-16-030JOriginal Principal: $14,600,000.00 Benefi ciary: CSFB 2005-C3 Tanque Verde LLC, c/o LNR Partners LLC, Miami Beach, Fla.Auction time and date: 10 a.m. March 26, 2013 Trustee: Jacob A. Maskovich, Bryan Cave LLP, 2 N. Central Ave., Suite 2200, Phoenix

PSM Grace LLC and 1749 South 6th Avenue, Tuscon, AZ 85713 also known as 1749 South 6th Avenue, Tucson, AZ 857131749 S. Sixth Ave., South Tucson 85713Tax parcel: 118-18-1800, 118-18-1880, 118-18-1930 and 118-18-1940 Original Principal: $1,122,000.00 Benefi ciary: EH National Bank, formerly known as Excel National Bank, Beverly Hills, Calif.Auction time and date: 11:30 a.m. April 2, 2013 Trustee: Robert W. Saxton, c/o SBS Trust Deed Network, 31194 La Baya Drive, #106, Westlake Village, Calif.

NSC LLC 200 S. Stratford Drive, Unit 102, and 208 S. Stratford Drive, Unit 103, 85716Tax parcel: 129-02-4520 and 129-02-4530 Original Principal: $186,600.00 Benefi ciary: BOT Real Estate Holdings I LLC Auction time and date: 11 a.m. March 22, 2013 Trustee: Ronald M. Hortwitz, Jaburg & Wilk, 3200 N. Central Ave., Suite 2000, Phoenix

VNM Foothills TIC LLC (80%) and DK TIC LLC (20%) 6944 E. Tanque Verde Road 85715 Tax parcel: 133-15-291 Original Principal: $6,225,000.00 Benefi ciary: RFH Servicing LLC, Las Vegas Auction time and date: 11:30 a.m. March 27, 2013 Trustee: Security Title Agency Inc. Default Services Division, 3636 N. Central Ave., Third Floor, Phoenix

LIENSFederal tax liens Zytoon LLC, 2744 E. Broadway. Amount owed: $9,076.81. Stormwater Pollution Erosion and Sediment Control Consulting LLC and Howard Myers, 7111 N. Pampa Place. Amount owed: $9,140.41.Shear Performance and Foothills Metro Salon Inc., 8324 N. Rose Marie Lane. Amount owed: $2,539.67. Pallanes Assisted Living Home and Tommy Pallanes, 441 E. 34th St., South Tucson. Amount owed: $17,339.06. J-3 Construction LLC and Jerry M. Burns, 9420 E. Golf Links Road PMB 362. Amount owed: $4,578.83. Sonoran Builders Ltd., PO Box 26443, 85726. Amount owed: $97,563.46. Maven Group LLC and Carolyn Jeanne Kraus, 8682 E. Placita Pueblo Bonito. Amount owed: $4,383.00. Post-Grad Inc., 740 E. Chula Vista Road. Amount owed: $8,591.05. Party Carousel LLC, 903 N. Swan Road. Amount owed: $2,567.65. Cappsco International Corp., 805 S. Park Ave. Amount owed: $194,619.71. Lee Ross Teran Inc., PO Box 327, Sahuarita 85629. Amount owed: $22,134.88.Jade Garden LLC and Che Sam, 3720 W. Ina Road, Marana. Amounts owed: $127,960.70 and $34,858.02. Snelling Temporaries and Banick Inc., 4329 E. Broadway. Amount owed: $309,369.83. Rage Electric LLC and Gilbert Elam, 5534 N. Jusnic Court. Amount owed: $69,192.40. Southern Arizona Credit and Business Services Inc., 426 S. Pemberton Ave. Amount owed: $25,517.23.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)VIP Printing & Promotions, PO Box 22133, 85734. Amount owed: $19,034.97.


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MEDIA

Prediction: Broadcaster vs. cable company will rerun By David Hatfi eldInside Tucson Business

If you thought that was just a skirmish this month that took KOLD 13 programming off Cox Cable for most of four days, a top-rank-ing executive says his major network is losing about $1 billion in operating cash fl ow large-ly due its failure to get the kind of money from cable and satellite companies that its competitors are getting.

More to the point, that top-ranking execu-tive is Stephen B. Burke, CEO and president of NBCUniversal, who it just so happens also holds the title of executive vice president of the network’s majority owner, Comcast.

For 12 years before Comcast acquired its majority interest in NBC at the beginning of 2010, Burke had fought the fees that come as part of retransmission consent agreements between broadcasters and cable and satellite operators.

Th e fees, which he said generally range from about 25 cents to 75 cents per month per subscriber, add up to some big money. News Corp., owner of the Fox network, bugeted $308 million in revenue from that source in 2012. Fox has been especially ag-gressive in requiring its affi liates to get its re-

transmission consent fees up, targeting $1 per month per subscriber.

CBS has projected that by 2016 it will take in $1 billion in both retransmission consent fees for its own TV stations as well as a cut of the money its affi liates will get.

Th erein lies the rub that resulted in the standoff between Cox Communications and Raycom Media that resulted in KOLD 13 pro-gramming being off Cox’s Southern Arizona cable system from midnight Jan. 1 until about 8:30 p.m. Jan. 4.

Since the negotiations are confi dential — especially in this case since both Cox and Raycom are privately held companies — no-body knows for certain what the negotiations entailed, much less what’s in the settlement agreement.

By most accounts, my estimate in last week’s column was probably on the high side. Several who are familiar with similar negotiations say Raycom was probably seek-ing an increase from about 20 cents per month per subscriber to about 70 cents. While public statements from Cox indicated a major sticking point was the percentage of increase — initially the cable company said Raycom wanted a 250 percent increase — other broadcasters note that the previous

agreement was fi ve years old, two years older than the typical time frame for such agree-ments. Raycom also noted the rate it was ask-ing was something other cable and satellite companies, including Comcast, DirecTV and Dish Network, had already agreed to pay.

Broadcasters estimate about 109,000 households in Southern Arizona are served by Cox. At 20 cents per household, that’s $21,800 per month in revenue to KOLD. A rate of 70 cents per household jumps that to $76,300 per month.

Most likely both sides compromised. When negotiations reach the point that a sta-tion is removed from a cable line-up, the ini-tial loss goes to the broadcaster who loses access to viewers but as time goes on the bal-ance switches as frustrated cable subscribers go elsewhere, according to Dave Joseph, a former Tucson broadcast executive who has worked as a consultant negotiating retrans-mission agreements in other markets.

For Cox customers wondering how much the deal will mean to them in terms of higher monthly fees, broadcasters note that Raycom says it had already negotiated the same rate with other distribution companies so Cox’s fees should be commensurate with what the others are charging.

Th e bigger unknown for viewers is where the next skirmish may crop up. Th at’s diffi -cult to say. Each broadcast company and each cable and satellite company negotiate their retransmission agreements individual-ly. Th is time it just happened to be Raycom and Cox. Between the two of them, it in-

volved only fi ve markets: Tucson; Cleveland; Panama City Fla.; Baton Rouge and Lake Charles, La.; and Richmond, Va.

Until now, most negotiations never got to the stage of an impasse. On the other hand, 2012 was a particularly rugged year for pub-lic clashes with station blackouts taking place in several markets including Boston, Albany and Syracuse, N.Y.; and Harrisburg, Pa.

One that was particularly rancorous hap-pened in Corpus Christi, Texas, where a sta-tion owned by Cordillera Communications, the same company that owns KVOA 4, was taken off the Time Warner Cable system for fi ve months last year, a period of time that in-cluded the Super Bowl. Time Warner orga-nized Super Bowl viewing parties at local bars and restaurants that had access to the NBC-affi liate’s programming via DirecTV. Time Warner also gave away 22,000 antennas to subscribers so they could get the station over the air.

While it’s unknown when or where the next fi ght will break out, it will happen as broadcasters face increasing pressure from their networks to secure payments from ca-ble and satellite operators who will push back in their eff orts to try to control costs against the growing trend of “cord cutting” — subscribers leaving their systems for other entertainment sources, including the Inter-net.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

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We confidently attack the market withbold, precise strokes.Because we know the terrain and weunderstand what you want. Resolute, tenacious, decisive, andwhen called for, daring.Some call it “nerve.” We call it“success.” You will too.

We confidently attack the market withbold, precise strokes.Because we know the terrain and weunderstand what you want. Resolute, tenacious, decisive, andwhen called for, daring.Some call it “nerve.” We call it“success.” You will too.

INSIDE TRAVELTOURISM IN TUCSON

Sports tourism is a driving market for Oro Valley

Tourism itself is a $2 billion industry for the Tucson region. To reap the potential benefi ts of such a powerful industry, the Town of Oro Valley has been partnering with the Metropolitan Tucson Convention and Visitors Bureau (MTCVB) for the past 10 years.

Th e MTCVB provides a comprehensive sales promotion and advertising program to attract an increasing number of conven-tion delegates and vacationing tourists to the town.

Th e eff orts provide revenue to the community through transient rental and sales taxes, and contributing to the overall economic growth and continued viability of the tourism and hospitality industry, one component of which is sports tourism.

Sports tourism is currently part of Oro Valley’s Community Economic Develop-ment Strategy. Th e town’s partnership with MTCVB is one that is built on trust and expectations.

Over the years the MTCVB has success-fully attracted national competitions to Oro Valley, including the IronKids National Triathlon Series and the USA Triathlon - Duathlon National Championship.

Events like these result in a positive economic impact for Oro Valley for many reasons — simply put, because the athletes and their companions are traveling to our community, staying in our hotels, dining in our restaurants and shopping in our stores.

Oro Valley does not have a local property tax and relies heavily on local sales and bed taxes, most of which are generated by visitors.

Sports tourism began nine years ago in Oro Valley with the Arizona Distance Classic Half Gold Marathon, back then, a community event that has since grown into a world class event.

Th e Arizona Distance Classic is, arguably, the fastest growing distance race in the world, representing 45 states and fi ve countries. Over 2,200 athletes participate and it has an estimated economic impact of $491,588.

In April 2011, the IronKids National Triathlon attracted 900 participants and generated an estimated economic impact of $286,000. Th e USA Triathlon - Duathlon National Championship, entering its third year in Oro Valley, attracts 1,800 athletes and generates an estimated economic impact of $477,270.

To continue the momentum created by these high caliber endurance events, the Town of Oro Valley has invested in its own resources to capture additional opportuni-ties for sports tourism.

In 2012, the town council approved $5 million in capital improvements to transform the municipal pool at James D. Kriegh Park, 23 W. Calle Concordia, into one of Southern Arizona’s premier,

competition-level facilities. Th e new aquatic center includes a 50-meter pool, a splash pad, water slide, four diving boards, a six-lane 25-yard lap pool, shaded bleachers, classroom space and a conces-sion area.

Phase I, completed in September 2012, is open for lap swimming. Phase II is scheduled for completion in March.

Because of this new development, the town has already attracted a number of events, including the Arizona Eight & Under State Championship Meet, bringing 250 youth swimmers and their families to the area; and the 2014 U.S. National Synchronized Swimming Championships, that will bring 560 athletes with the potential to generate around $429,000 in estimated economic impact.

Not bad for a facility that isn’t offi cially open yet.

Th e Town of Oro Valley recently unveiled a new brand identity that includes the tagline, “It’s in our nature.”

With miles of multi-use trails, open space, parks, an archery range and a new premier aquatic center, Oro Valley is positioned to be a destination of choice, not only for tourists, but for athletes as well.

In this new year, through innovative partnerships with organizations such as the one with the MTCVB, we will continue to expand on our existing resources, develop new programs, attract new events and lure visitors. It’s in our nature.

Contact Amanda Jacobs, economic

development manager for the Town of Oro

Valley, at [email protected] or for

more information about Oro Valley, visit

http://orovalleyaz.gov. Th is monthly column

is prepared by the Metropolitan Tucson

Convention and Visitors Bureau.

AMANDA JACOBS


PROFILE

Ruby: A real honest-to-goodness ghost town By Lee AllenInside Tucson Business

Pull off to the side of the road and you can almost hear Ray Charles in the background crooning, “Ruby, you’re like a dream...”

Once a gem in Southern Arizona’s mining town showcase, the town of Ruby lost its sparkle in 1940 when, after taking out $7 million worth of lead, zinc, silver and copper ore, the mine at the foot of Montana Peak was closed. Within a year the entire town was abandoned.

Now a ghost town, Ruby is back in action — part-time anyway — ready to entertain adventurous souls willing to brave an often bumpy ride to explore a bit of history.

Founded as Montana Camp, a mining camp sometime a few years before 1880, the town was named by Julius Andrews, who owned the general store and estab-lished the post offi ce in 1912, naming it after his wife. Th e population peaked at about 1,200 in the 1930s.

Today, Ruby is a shell of its former self recognized by the National Registry of Historic Places. What you see has been there for decades, though victim-ized by the weather. Still available for sight-seeing and shooting snapshots are a number of aging structures, including a 1916 schoolhouse, what used to be a mercantile where two double murders took place in the early 1920s, an old bunk-house for miners, a scale that weighed ore trucks on the way to the smelter, remnants of a 1936 jailhouse and a two-hole outhouse of undetermined age.

Tallia Pfrimmer Cahoon grew up in what is now a nearly 100-year-old house that still stands. Co-author of the book “Ruby, Arizona: Mining, Mayhem, and Murder,” Cahoon refers to her former childhood home as “truly a gem of a ghost town.”

Th e sign “RUBY: Population 1” is no joke. Th e lone townsman is now caretaker Michael Th istle, an adventurer and herbalist who enjoys a silence that is seldom broken. “It’s peaceful here. Th e

isolation doesn’t bother me,” he says.

Th istle took over from Sundog, aka Perro del Sol, a pony-tailed refugee from the 1960s who formerly handled visitation details from collecting entry fees to providing a map and narrative about the

property and its past. Spartan doesn’t begin to describe the

lifestyle living in a tin-roofed clapboard building without electricity or running water. As if to allay fear over the lack of amenities, Sundog noted to Th istle, “We have two well-kept outhouses on the property.”

Sundog is gone, but the outhouses remain as do other vestiges of the Montana Mine that produced more lead and zinc than any other mine in Arizona.

Th ose who venture to Ruby shouldn’t expect a “touristy”-type ghost town. Little has been done to alter the original setting,

an unprotected victim of decades of sun and rain. Th ere are weathered timbers, crumbling adobe, rusted tools and mine shafts with vertical drops of 750 feet — now home to thousands of Mexican Freetail bats that appear nightly.

Ruby has retained its wild and rustic elements and visitors are cautioned: “If you see wild animals like bats, bobcats, and skunks, leave them alone. Th ere are rattlers. Th ey are residents. Please let them pass unharmed.”

Although there are roads, Ruby is best appreciated walking through the town. Vehicles are generally parked to minimize noise and dust. All-terrain vehicles are not allowed. Th ere are picnic areas with fi re pits near two small lakes where catch-and-release fi shing for bass, catfi sh and bluegill is permitted. Th e lakes, former reservoirs for mining operations, also act as swim-ming holes on really hot days.

“Th e future of Ruby is anything but certain,” writes author Cahoon. “Over the years, there has been talk among the

owners about creating a Ruby historical site by restoring the old mining location and turning it into a collection of museums.”

One of the owners of the acreage, Howard Frederick, says plans aren’t quite that grandiose.

“Th e buildings have taken a lot of wear and tear and the goal of our restoration eff orts is to maintain those that are salvageable, but it’s a never-ending battle,” Frederick said. “Last year we established a non-profi t Ruby Mines Restoration Project to stabilize the buildings, develop a habitat restoration plan and continue document-ing the mining operation’s history.”

For now, the town stands as it did more than 100 years ago.

“Th e value of Ruby is what it is histori-cally, environmentally, and aesthetically,” says Frederick. “Part of the town’s attrac-tion is its remoteness and rustic beauty. Ruby has changed little since the mine closed and that’s the charm and allure. Th e way it is now is the way it was then.”

im

Sathft

BIZ FACTS

RubyVisitors are welcomed during daylight hours Thursdays through Sundays.Admission is $12, which goes to the Ruby Mines Restoration Project(520) 744 4471To get there: From Tucson take Interstate 19 south to Exit 48, go west about 23 miles to the town of Arivaca, turn left (south) on Fifth Avenue which becomes Fragutta for two miles before a split in the road, veer to the left for Ruby Road and, after about 12 miles of “winding moun-tain” and dirt road, will take you to Ruby. Return via the same route, or if you have a high-clearance vehicle continue on Ruby Road south through Coronado National Forest land on a 28 mile-route that will take you by Pena Blanca Lake and back to I-19, Exit 12.

Some of the aged and dilapidated buildings that still stand in Southern Arizona ghost town Ruby.

Lee

Alle

n


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SMALL BUSINESSSMALL BUSINESS

What small business can expect from the Legislature this year

Certainty is good. Fortunately, we enter Arizona’s 2013 Legislative session with answers to a number of critical questions that we had at this time a year ago. Will Arizona have a state-run healthcare exchange if the Aff ordable Care Act is not repealed? Will our state’s economy continue to improve? Will the balance of power in our Legislature remain far to the right or will it shift more to the center?

We now have the answers to those questions and with them have a better idea of what confronts us and what we have to work with.

Education reformKindergarten-through-12th grade,

state-run universities and community colleges have all felt the the eff ects of the economic downturn with signifi cant cuts in recent years. Proposition 204 on the November 2012 ballot was intended to solve the funding woes and provide a dedicated and permanent source of revenue to fund education in our state. But the proposition’s failure brings education funding back to the drawing board.

Most will agree the Legislature must fi nd a way to increase funding for education, so expect this to be among the top issues this year. Also, expect to see education funding related bills introduced and promoted as workforce and economic development related.

Healthcare in ArizonaAccess to and the cost of quality

healthcare in the state is an increasing expense that impacts the bottom line of Arizona businesses. Prospective businesses can also measure in real dollars how Arizona stacks up against other states when determining the cost of doing business.

Healthcare in Arizona was already a big and complex issue prior to the passage of the Aff ordable Care Act, or Obamacare. Now Arizonans must also get ready to navigating through a new health exchange that will be run by the federal government. Expect to see eff orts to block a federally run exchange by advocates for local control.

TaxesSimplifi cation of Arizona’s complicated

tax system will continue to be a top issue as momentum has increased after two years

of signifi cant progress. Recent tax reforms have reduced the burden on capital gains tax, corporate income tax and the assessment of business equip-ment and property. A

signifi cant burden that remains concerns the the administrative hassles facing Arizona businesses to comply with the state’s complex tax system.

Compliance represents a real cost to Arizona businesses and, along with the state’s current tax rates, it’s a major factor in our ability to be competitive in attracting new businesses to Arizona and encourag-ing existing businesses to stay and expand. Expect the Legislature to begin to adopt recommendations recently proposed by Gov. Jan Brewer’s Transaction Privilege Tax Simplifi cation Task Force.

State budget With a temporary 1-cent sales tax

scheduled to end on June 1, expect the state budget to once again be an issue widely discussed and debated. Since the state expects an increase in revenues of more than 5 percent this year, state-run programs that were cut or reduced signifi cantly will resurface and be promot-ed as priorities.

Th e relentless pressure to expand Arizona’s tax base by taxing services will continue and vigilance by those who oppose it will remain as strong as ever.

While Republicans’ control of the Legislature remains after last year’s elections, the margins are slimmer as Democrats picked up seats. Overall, expect the Legislature to shift a bit to the center with lawmakers becoming more coopera-tive across party lines in order to get things done.

Jerry Bustamante is senior vice president of public policy and oversees the Southern Arizona offi ce of the Arizona Small Business Association, 4811 E. Grant Road, Suite 262, in Crossroads Festival, (520) 327-0222.

JERRY BUSTAMANTE


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SPECIAL EVENTS

City of Tucson Retail Tax WorkshopTuesday (Jan. 22) and Tuesday (Jan. 29) 10:30 a.m. to noonMartha Cooper Library 1377 N. Catalina Ave.Local businesses are invited to learn more on license requirements and reporting privilege (sales) and other taxes at a free open house. Workshop outlines city business license requirements and reporting privilege/use taxesContact: Yvonne [email protected] (520) 791-4681www.tucsonaz.gov/fi nance

Maximize Your Direct Mail Muscle: Links into Lists, Leads and MoreTuesday (Feb. 12)11:30 a.m. to 12:30 p.m.The Tucson Metro Chamber 465 W. St. Mary’s RoadA Business Growth Series Workshop presented by Tom Farmer of the Pima County Public Library and Dawn Vandaveer of Prototypes.Contact: Shirley Wilka [email protected](520) 792-2250 ext. 132$10/person; non-members: $20/persontucsonchamber.org

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

REGULAR MEETINGS

BNI Professional Partners ChapterBusiness Network InternationalEvery Wednesday

11:30 a.m. to 1 p.m.Tucson Country Club, 2950 N. Camino PrincipalRSVP: Kevin Wood (520) 260-3123

Business Principals of TucsonFirst and third Thursdays7 to 8 a.m.The Hungry Fox, 4637 E. BroadwayRSVP: Steve Dunlap at (520) 622-0554

Casas Adobes Rotary ClubEvery Wednesday7 to 8 a.m.La Paloma Country Club, 3660 E. Sunrise DriveInformation: www.casasadobesrotary.org

Catalina Tucson RotaryWeekly meeting of the Catalina Tucson Rotary ClubEvery FridaynoonViscount Suites Hotel 4855 E. Broadway Info: Steve Pender [email protected] or (520) 745-6500Cost: $20www.catalinarotary.org

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

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

Conquistador ToastmastersEvery Wednesday7 to 8:30 p.m.ASBA conference center 4811 E. Grant Road, Suite 261Contact: Saul Silven at (520) 885-3497 RSVP: requested for guestsCost: guests free

CALENDAR


Announces

Innovation in the Workplace

Soc

iety

forHum

anRe

source Management of Greater

Tucson

Air System ComponentsArete AssociatesArizona’s Children AssociationBE AerospaceCarondelet Health NetworkCasa de los NinosCommunity Partnership of Southern ArizonaCox HTG MolecularLazyDaysMindplayParagon Space Development CorporationSafari Club InternationalSierra Southwest CooperativesimpleviewSOLONSouthwest Gas CorporationSyncardiaTown of Oro ValleyTucson Airport AuthorityTucson Electric Power CompanyUniversal AvionicsVante

Company Nominees

Andrea LightfootAric MearesBernard StickellBonnie MattesChris DominiakDavid DowlingDiane Marie LandsingerElaine JacksonGarrett KowalewskiGladys NasserGreg FlattHannah LozonHilda SlaninaIda AlexandrinoJenny CoomlerJill O’RourkeJoy HallKate GoldmanKevin KriegerLily McCarthyLisa RainesLori PrinceLupita ChavezLynn CosgroveMary KeysorPam SummersRosemary SmithSandra AbbeySandra LuedersStephanie PellaTim White

Individual Nominees

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

5:00 pm Champagne ToastDouble Tree Hotel at Reid Park

445 S. Alvernon Way, Tucson, Arizona 85710

Celebrating Innovation

in the Workplace

Event

INNOVATION LEADERSHIP DIVERSITY TECHNOLOGY COMMUNITY

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

Entrepreneurial Mothers AssociationMonthly luncheonFirst Thursday11:30 a.m. to 1 p.m.Old Pueblo Grill60 N. Alvernon WayInformation: Sherry Goncharsky, [email protected]

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

Foothills Optimist ClubFirst and third Wednesdays, noonMacayo’s Restaurant7360 N. Oracle RoadInfo and RSVP: (520) 744-5927

Foothills Rotary ClubFirst and Third Fridays NoonMichelaneglo’s420 W. Magee RoadLunch OptionalInfo: (520) 909-9375

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

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

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

Group Referral Organization networking group First and third WednesdaysLuna Bella2990 N. Swan Road Suite 145Information: www.grotucson.com

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


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Tucson, AZ [email protected]

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GET ON THE LISTNext up: Public school districts, Private elementary and secondaryschools, Charter schools

Th e 2013 Book of Lists will be published Jan. 25. Inside Tucson Business is now gath-ering data for the 2014 edition.

Upcoming lists are: • Jan. 18: Advertising agencies, Public re-

lations fi rms, Graphic design fi rms • Feb. 1: Public school districts, Private

elementary schools, Private secondary schools, Charter schools

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

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

• Feb. 22: Commercial photographers and Video production companies

If your business fi ts one of these catego-ries, update your profi le now. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted businesses can create a profi le by following the directions.

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

ECONOMIC DEVELOPMENT Th e University of Arizona projects get recognition

Th e University of Arizona has received na-tional recognition from the International Eco-nomic Development Council (IEDC) for two economic development projects that have had a signifi cant impact on the Tucson region.

Th e Bridges/UA Bio Park was recognized as one of the top economic development projects in the United States during 2012. Th e project earned a silver award for Public-Private Partnerships.

Th e project was recognized as an out-standing and innovative development that has signifi cantly enhanced the economic revitalization of a distressed communities, state or region.

Th e Bridges is a master-planned, 350-acre mixed-use development at Campbell Avenue and 36th Street.

It is a partnership of the University of Arizo-na, 5151 LLC (Lennar Homes and KB Home) and Retail West/Eastbourne Investments. Th e Bridges is anchored by the UA’s 65 acre bio park which is being developed and managed by the UA Offi ce of University Research Parks.

Th e Bridges is bringing much needed re-tail and residential development to Tucson’s central city. It is home to two large retailers with several smaller retail pads under de-velopment.

Th e UA Bio Park is being developed as a site for high technology companies, espe-cially those in the fi elds of biosciences, life sciences and health care.

Th e park will include commercial facili-

ties, a science high school hotel and confer-ence center and multi-family housing.

INTERNATIONAL TRADEArizona exports are up butnot back to pre-recession

Arizona exports for the fi rst three quar-ters of 2012 were up 4 percent compared with the same period for 2011, but are still not back to pre-recession levels and are lag-ging trade numbers nationally and for some other Western states.

Arizona businesses exported more than $13.8 billion worth of goods during the fi rst nine months of this year, according to the U.S. Department of Commerce.

Th at’s up from roughly $13.2 billion dur-ing the same time frame last year for growth of 4 percent.

But Arizona’s outgoing trade has not yet recovered from the recession. Th e state had close to $15 billion in exports during the fi rst three quarters of 2008, according to the Commerce Department fi gures.

State exports of semiconductors and computers are still down. Computer chips and electronics components account for 27 percent of Arizona’s outgoing foreign trade and are the state’s largest export.

For the fi rst nine months of 2012, the state exported $3.7 billion worth of semi-conductors and other computer parts and electronics components. Th at is down from $3.8 billion for the fi rst three quarters of 2011 and $5.2 billion from the same time frame in 2008.

Arizona’s 2012 trade with Mexico has re-bounded to 2008 levels. Exporters sent $4.7 billion worth of goods to Mexico during the fi rst nine months of 2012. Th at compares with $4.3 billion worth of exports to Mexico from Arizona in 2008.

But trade with some other markets, in-cluding Europe, Singapore and Canada, are still not back to pre-slowdown levels.

REAL ESTATE/LAND Campbell Plaza center sells for $32.3 million

An affi liate of Holualoa Companies has sold the 190,000 square-foot Campbell Pla-za for $32.3 million.

Th e center at northeast corner of Camp-bell Avenue and East Glenn Street was ac-quired by the company in 1998 and has since been redeveloped. It is currently anchored by an Albertsons grocery store and includes Staples offi ce supply, Ross Dress For Less, Ace Hardware, Panda Express, T-Mobile, Old Chicago restaurant, Five Guys Burgers and Fries, Sauce Pizza and Wine and others.

Mike Perlman, senior vice president of Holualoa Companies, oversaw the redevel-opment of the property to bring the mix of national retailers to the center.

Th e redevelopment of the plaza “signifi -cantly added to the asset’s value,” said Nan-cy McClure, CBRE vice president and the

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plaza’s leasing agent since 2006.Th e buyer was Krausz Puente LLC and

Krausz RC Properties One LLC, Irvine, Calif. Th e seller was Camelback Corporate Center Joint Venture LLC, a company controlled by Holualoa Companies, 3573 E. Sunrise Drive.

McClure and Mike Sandahl in CBRE’s Tuc-son offi ce, along with Bob Young in CBRE’s Phoenix offi ce, represented the seller.

Campbell Plaza was built in 1960.

Realtypin.com ranks Tucson high for 2013

Th e New York City based home listing ser-vice Realtypin.com has named Tucson as one of its top fi ve locations to live for 2013.

Th e company produced the list by evalu-ating the median listing prices, average number of days on the market, inventory, home value stability and the local unem-ployment rate in a number of communities.

Here’s what Realtypin.com had to say about Tucson, which it ranked No. 2: “If you’re looking for a fi x-it-up house fl ipping project, Tucson is the place to buy.”

Th e company notes the high percentage of foreclosures, low median sale price and low unemployment rate in Tucson.

“After all, government and military jobs are often unaff ected by the economy, so Tucson has a lower unemployment rate than the rest of the country,” the Realtypin.com top fi ve notes.

Th e company ranked Dallas/Fort Worth as the No. 1 market for 2013. Grand Rapids, Mich., was No. 3; Austin, Texas, No. 4; and Phoenix No. 5.

GOVERNMENTMelvin agrees to sponsor fi lm incentive bill

Th e Tucson Film Offi ce says state Sen. Al Melvin, R-Tucson, has agreed to sponsor legislation this session for an incentive for the fi lm industry in Arizona.

Th e heart of the proposed incentive would likely be a rebate that fi lm produc-tion companies could apply to receive once they reach a certain threshold of investment in the community.

Th e goal would be to attract more fi lm and television production to the state, which once was one of the biggest markets outside of Hollywood.

At least 40 states have fi lm-industry tax credits of some sort.

All-GOP corporation commission picks leader

Bob Stump, who was re-elected to the Arizona Corporation Commission (ACC) last November, was selected by his col-leagues on the fi ve-member body to be chairman for the next two years.

Two others elected in November took their seats. With the arrival of Bob Burns and Susan Bitter Smith, the commission is now entirely made up of Republicans.

Th e ACC is the state’s regulatory body

overseeing utilities and corporation fi lings.Separately on Monday, Jodi Jerich start-

ed her new duties as executive director overseeing the day-to-day operations of the ACC’s divisions, including utilities, securi-ties, corporations and hearings.

For the past three years Jerich was the di-rector of the Residential Utility Consumer Offi ce (RUCO), which represents residential utility ratepayers in cases before the ACC.

EDUCATION/RESEARCHSunnyside to off er GED,diploma option for dropouts

In an eff ort to help high school dropouts earn a diploma or GED, Sunnyside Unifi ed School District has started a new fl exible education program called GradLink.

“I think this can be a national model,” said Sunnyside Superintendant Manuel L. Isquierdo.

Students of any Tucson area school who dropped out with only fi ve or fewer credits remaining and passed the AIMS test can par-ticipate in an online, self-paced curriculum geared toward earning a diploma or GED.

GradLink is open to students ages 17 to 21 who dropped out of high school within the last two years.

Th e district will loan the students laptops if they need them to access the internet and complete coursework.

Isquierdo said the program won’t cost the district more money because the com-puters were refurbished by Sunnyside staff and the per-pupil funding will be provided by the state.

Th e district has joined forces with Tuc-son Mayor Jonathan Rothschild, at least symbolically, to promote GradLink.

“Th e bottom line is, the way out of pov-erty is education,” Rothschild said. “To any-one considering dropping out, the mayor’s message to you is: Don’t.”

City funds will not be used for GradLink. More information about GradLink is

available at www.susd12.org/GradLink or (520) 261-4723.

Arizona gets ‘C-’ in new education report

An education advocacy group headed by former Washington, D.C., schools chancel-lor Michelle Rhee gave Arizona a C-.

Th e group, Students First, graded states on how well each state’s education policies serve students as opposed to test scores or other criteria.

Th e report gave almost 90 percent of states grades lower than C. No state earned a mark higher than B-.

Read the report at reportcard.students-fi rst.org.

KUDOSHorizon Moving Systems honored by United Van Lines

Tucson’s Horizon Moving Systems Inc.

has been honored by United Van Lines with a President’s Club Award, honoring the com-pany for generating at least $1 million in sales for the past year. In Horizon Moving’s case, the company reached the $6 million level.

Horizon Moving received the award ear-lier this month during United Van Lines’ 2012 convention in San Francisco.

Founded in 1924, Horizon Moving Sys-tems has been owned and managed by the Dusenberry family for three generations. Its corporate headquarters are at 3600 E. 36th St. and has offi ces in Phoenix, Flagstaff , Si-erra Vista and Yuma.

Tucson shoe store named one of nation’s best

Fleet Feet Sports Tucson, a specialty run-ning retailer, has been recognized as one of the 50 Best Running Stores in America by trade and consumer publications Running Insight and Competitor Magazine.

Th is was the seventh consecutive year the store, at 7301 E. Tanque Verde Road, has earned the honor

A special report on Th e 50 Best Running Stores in America appears in the December issue of Competitor Magazine.

BRIEFS


UApresents, in partnership with the Reid Park Zoological Society, has a six-perfor-mance encore this weekend of one of its most popular shows of last season. Th e Zoppé Family Circus performs under the big top, a 500-seat tent set up in Reid Park northeast of the intersection of East 22nd Street and Country Club Road.

Founded in 1842, the Zoppé Family Circus honors Old-World Italian circus tradition as sixth generation circus per-former Giovanni Zoppé plays Nino the Clown leading audiences on a journey featuring acrobatic feats, equestrian showmanship, canine capers, clowning and Nino’s own trapeze performance of loop-the-loop.

Shows are at 7 tonight (Jan. 11), 1, 4 and 7 p.m. Saturday and 1 and 4 p.m. Sunday. Tickets are $30 to $35 with discounts for children, students, seniors and military. Buy them through UApresents. As an added bonus, anyone who brings a ticket stub from the circus to a Reid Park Zoo ticket booth by Jan. 18 will get a $5 discount off the $60 annual family membership or $144 three-year family membership to the zoological society.

Song and danceValarie Pettiford, a multi-talented actress,

jazz singer and dancer who has performed in theater and on TV, is the featured star in a Broadway-style musical and dance spectacular titled “Celebration” this weekend. Th ere will be two performances, at 8 p.m. and 3 p.m. Sunday in the Berger Performing Arts Center, 1200 W. Speedway on the campus of the Arizona State School for the Deaf and Blind. Tickets are $42 each. Buy them through the Invisible Th eatre at www.invisibletheatre.com/.

ArtLovers of jazz and photography might

want to check out the exhibit currently up at the Center For Creative Photography,

1030 N. Olive Road southeast of the intersection of East Speed-way and Park Avenue on the University of Arizona campus. “Th e Jazz Loft Project: Photo-graphs and Tapes of W. Eugene Smith 1957-1965” chronicles a moment in time at a small loft apartment in New York when jazz legends performed and mingled with literary and artistic peers of the day. Th e show will be up through March 10. Th e Center For Creative Photography is open

9 a.m.-5 p.m. weekdays and 1 p.m.-4 p.m. weekends. It will be closed on Jan. 21, Martin Luther King Jr. Day.

FilmOne of the best fi lms of 2012, “Zero

Dark Th irty,” arrives in movie theaters this weekend. A riveting and compelling fi lm about the 10-year search for Osama Bin Laden, it stars Jessica Chastain, Joel Edgerton and Chris Pratt. Believe the hype, this is a powerful fi lm about human-ity in the face of adversity. Two other features opening this weekend are “Gang-ster Squad,” a 1940s Los Angeles crime drama with a terrifi c cast including Sean Penn and Ryan Gosling, and the horror/comedy “A Haunted House.”

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

Zoppé Family Circus performsunder the big top this weekend

OUT OF THE OFFICEON THE MENU

Who remembers the 1970s television commercial for Heinz Ketchup chronicling the product’s excruciatingly slow journey from the bottle to the burger while Carly Simon sang, “Anticipation, it’s making me wait?” Th e company eff ectively addressed the challenge of a condiment that didn’t exit its bottle very quickly by marketing it as a “taste that’s worth the wait.”

Foodies have long promoted patience as a prerequisite for perfection. From “low and slow” in the barbeque pit to the long-term commitment required to produce the perfect Cajun-style roux, a number of chefs have encouraged our otherwise fast-paced society to simply slow down and savor.

Encouragingly, many of these chefs have rediscovered the sous-vide style of cooking, the theory that dates back to the late 1700s. Sous-vide, which translates to “under pressure,” suggests that certain foods that have been seasoned and placed in vacuum-sealed bags, then dropped into warm-water baths for extended periods of time, produce more fl avor – and are more tender – than foods prepared more conventionally.

Several chefs in Tucson have also embraced the beauty of the sous-vide, noting the critical preservation of certain foods’ juices and aromas that the painstak-ing process yields.

Addam Buzzalini, executive chef at Maynards Market and Kitchen, 400 N. Toole Ave. in the Historic Depot, says he employs sous-vide daily. His water bath, called an immersion circulator, is specially designed to keep foods at a constant temperature throughout the cooking process within 0.01 of a degree. Th is ranges from a fi let of salmon, which hangs out in a

135-degree bath for approximately 10 minutes, to beef short ribs, which enjoy a much longer swimming time in a warmer bath of 170 degrees.

Surprisingly, Buzzalini’s seasoned, seared and sealed ribeye steaks can spend a full 45 minutes in the bath and still post a medium rare degree of doneness. Buzzalini says the sous-vide process works just as well for vegetables. His menu features sous-vide fennel bulbs with a mushroom and red wine reduc-tion, “which uniquely transforms the texture of this beautiful vegetable to that of a protein.”

Th ere’s a sous-vide operation at the Lodge on the Desert, 306 N. Alvernon Way, as well, under executive chef Ryan Clark.

“Protein is always under pressure” at the lodge, Clark said, as he uses his immersion circulator to sous-vide fi let mignon, lamb, vegetables, sauces and more.

Clark recently treated his guests to a “pig’s face pate,” which confi ned entire pigs’ heads to the sous-vide bath for 72 hours. After this multi-day immersion, the snout, cheeks, tongue and other facial properties were then seasoned with garlic, herbs and brandy, pressed into a terrine and served with a house-made mustard and toast points.

Clark’s menu currently features a butternut squash and ginger puree that rests in his sous-vide bath before it joins its companion fi let of salmon.

Sous-vide, or not sous-vide? Th at is the question. But as for me, I say oui!

Contact Matt Russell, whose day job is

CEO of Russell Public Communications, at

[email protected]. Russell is also

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

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

Back from the 1700s, let’s say oui to sous-vide

MATT RUSSELLHERB STRATFORD

50% OFF for 2 months


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

{TELL US ONLINE}

PEOPLE IN ACTIONAWARDS

University of Phoenix Southern Arizona Campus has awarded alumnae Tucson Police Department Deputy Chief Sharon Allen and business leader Pamela Crim with Community Service Awards for their individual contributions to nonprofi t organizations in the Tucson community. Allen she sits on the board for organizations such as the Northwest Medical Center Women’s Health Advisory, La Frontera Clinic Board of Directors, 100 Club of Arizona and the Heart Disease Association. Crim, director of sales at Cox Business, has volunteered her time with organizations such as the American Cancer Society, and United Way of Tucson and Southern Arizona, facilitating business and life skills workshops for youth. Each year University of Phoenix Alumni Association celebrates alumni who are making

a difference and giving back to their communities. This acknowledgement recognizes graduates for their efforts to better the communities in which they live and work.

Westward Look Wyndham Grand Resort and Spa director of engineering, Al Raso, has been honored by the Arizona Lodging and Tourism Association with a Stars of the Industry Award as Manager of the Year. The Stars of the Industry program was created more than 40 years ago to recognize outstanding

accomplishments in Arizona’s lodging industry and those who symbolize quality service.

NEW HIRES

Tucson Old Pueblo Credit Union’s Board of Directors has selected Vern Babilon as president and CEO. Babilon will assume the role previously held by Joseph Mirachi. Before joining TOPCU, Babilon was the owner of GVBabilon Associates—a recruiting fi rm located in Cypress, Texas. He earned his B.A. in banking, fi nance and

accounting at Alvernia College in Reading, Penn. He also earned a master’s of business management from Penn State University.

APPOINTMENTS

Snell & Wilmer has announced the appointment of four new partners,

including Tucson labor and employment attorney Joe Kroeger. Kroeger, who earned his law degree from Stanford Law School, represents employers in a variety of areas, including employment discrimination and harassment, wrongful discharge, breach of contract, misappropriation

of trade secrets, non-competition/non-solicitation, social media, alternative dispute resolution and arbitration agreements and other related matters. Mike Gehret of Salt Lake City, Jeff Scudder of Phoenix and Nicole Skorupka of Denver were also selected as partners.

Merri Pendergrass, MD, Ph.D., has been appointed director of the Diabetes Program at the University of Arizona College of Medicine – Tucson. Pendergrass also has joined the faculty of the UA Department of

Medicine as a professor of medicine in the Division of Endocrinology. Prior to joining the UA, Pendergrass was vice president and national practice leader for the Diabetes Therapeutic Resource Center of Medco Health Solutions, Inc. (now Express Scripts, Inc.), maintained a clinical practice in diabetes and endocrinology at Parkland Memorial Hospital and was on the faculty of the University of Texas Southwestern Medical School in Dallas. Prior to that, she was on the faculty of Harvard Medical School and was director of the

diabetes program at Brigham and Women’s Hospital in Boston. Pendergrass earned a doctorate in biopsychology at the University of Texas, Austin, and her medical degree at the University of Texas Southwestern Medical School, Dallas. She completed her internship and residency in internal medicine at the University of Texas, San Antonio, where she also completed a fellowship in endocrinology and metabolism.

ELECTIONS

Sylvia M. Lee, Ph.D. and Marty Cortezwere recently sworn in as Pima Community College Governing Board members. Pima County School Superintendent Linda Arzoumanian administered the loyalty oath to Lee, who was elected to represent District 3 in November, and to Cortez, who represents District 5 and was re-elected to serve a fourth term.

SYLIVA M. LEE MARTY CORTEZJOE KROEGER MERRI PENDERGRASS

NEWS

‘Amnesty’ might be part of immigration reform By David GrantTh e Christian Science Monitor

Th e momentum of President Obama’s resounding election victory in November — with a big push from Latinos and other mi-nority groups — has catapulted immigra-tion policy to the top of Washington’s 2013 agenda, making reform not only possible but also likely.

Th e shift in the political conversation has been so dramatic that even a pathway to citizenship for some of the estimated 12 million undocumented immigrants in the United States — long rejected out of hand by most Republicans and some Democrats — could be part of the deal.

Th e task is momentous. It involves weigh-ing the wishes of industries from agriculture to high-tech, as well as the sensitivities of opening the door to immigrant workers at a time when unemployment remains high.

But this year appears to be ripe for com-promise. How reforms might take shape could be a major point of contention be-tween the parties, but lawmakers on both sides now see an opportunity for what could be their most expansive achievement of 2013.

“It has to be in 2013,” says U.S. Rep. Raúl Labrador, R-Idaho, an immigration lawyer

who thundered into Congress in the tea par-ty wave of 2010. “If we wait until 2014, it’s going to be election time. And you know how effi cient we are here during election time.”

Th ere’s been a fl urry of activity on Capi-tol Hill recently. In the Senate, a “Gang of Eight” — led by longtime immigration re-formers Sens. Chuck Schumer, D-N.Y.; John McCain, R-Ariz., and Lindsey Graham, R-S.C. — has added freshman Sens. Michael Bennett, D-Colo., and Mike Lee, R-Utah, while potential 2016 presidential aspirant Sen. Marco Rubio, R-Fla., is leading his own initiative.

Th ere’s been movement in the House, too. “One thing clearly has changed,” says Rep. Luis Gutierrez, D-Ill., the lawmaker who co-wrote a 2005 comprehensive immigration reform measure with now Sen. Jeff Flake, R-Ariz. “Nobody is talking about self-deporta-tion. Nobody is talking about how (Arizona’s SB 1070 anti-illegal immigration law) should be the standard applied across the land. No-body is talking about vetoing the DREAM Act,” which off ers a path to citizenship for some young undocumented immigrants.

“We are having wonderful conversa-tions,” Gutierrez says.

Critical to the change in tone is that sev-

eral leading lawmakers with near-pristine conservative credentials are also involved.

Two tea party superstars — Senators Ru-bio and Lee, both of whom knocked out es-tablishment Republican fi gures to win their seats — are going to be key players in any reform.

In the House, the involvement of House Judiciary chairman Rep. Bob Goodlatte, R-Va., and Labrador can provide cover to conservative lawmakers from the party’s right fl ank.

“Th e fact that you’re going to have strong conservative voices helping lead this debate is going to be critical to solving it instead of using it as a political wedge,” says Rep. Steve Scalise, R-La., incoming chairman of the Republican Study Committee, the largest and most conservative caucus in the House.

It’s notable that both Labrador and Ru-bio believe in, one way or another, a path to citizenship for some illegal immigrants, even while they leave open just who can get on that path.

Some conservatives say any form of citi-zenship given to illegal immigrants — no matter the conditions attached to it — con-stitutes an “amnesty,” which is a guarantee only of more illegal immigration unless the

nation’s borders are fi rmly secured and stringent workplace verifi cation systems are put in place.

But a recent poll by George Washington University and Politico found 62 percent of Americans support a proposal that would allow illegal immigrants to earn citizenship over a period of several years, with 40 per-cent strongly supporting such a measure. Only 35 percent opposed it.

While the parties broadly agree on the need to pursue immigration reform, how to do it remains up in the air.

Both Rubio and Labrador — like many Republicans — favor breaking up the immi-gration issue into smaller pieces.

Rubio argues that before Congress deals with the millions of undocumented immi-grants, it must prove to the American people that it can secure U.S. borders and establish an eff ective workplace-verifi cation system. Labrador says he prefers a handful of bills moving simultaneously, with diff erent co-alitions able to support each measure.

Obama and Democrats in Congress fa-vor a single comprehensive immigration bill, believing that taking one diffi cult but all-encompassing vote is more secure for lawmakers than having to vote for a half-dozen or more specifi c proposals.


FINANCEYOUR MONEY

Th e Alternative Minimum Tax and strategies to minimize it

When its was fi rst introduced in 1969, the alternative minimum tax (AMT) was widely considered to be a “rich man’s tax” — a fallback tax for those taxpayers with big incomes and numerous deductibles. But over the years, it was only adjusted twice for infl ation. As a result, the Congressonal Research Services estimates 20 percent of taxpayers will face it on their 2012 returns, compared to just 1 percent in 1997.

Th e mechanics of the AMT are complex. But a general understanding of how it works and what triggers it can help you minimize or avoid it — and even use it to your advantage.

Th e AMT truly functions as an “alterna-tive” tax system. It has its own set of rates and rules for deductions, which are more restrictive than the regular rules. It operates in parallel with the regular income tax system in that if you’re already paying at least as much under the “ordinary” income tax as you would under the AMT, you don’t have to pay it. But if your ordinary tax falls below this minimum, you have to make up the diff erence by paying the alternative minimum tax.

Th e AMT can be triggered by a number of diff erent variables. Although those with higher incomes are more susceptible to the tax, other factors such as the amount of exemptions or deductions also can prompt the tax. Even commonplace items such as a deduction for state income tax or interest on a second mortgage can set off the AMT.

AMT rates start at 26 percent, rising to 28 percent at higher income levels. Th is compares with regular federal tax rates, which currently start at 10 percent and step up to 35 percent. Although the AMT rates may appear to cap out at a lower rate than regular taxes, the AMT calculation allows signifi cantly fewer deductions, making for a potentially bigger bottom-line tax bite.

Unlike regular taxes, AMT rates do not have individual exemptions or other dependent exemptions, nor are fi lers allowed to claim the standard deduction. Th e AMT also doesn’t allow for deductions of state or local taxes, property taxes or for a number of other itemized deductions, including home equity loan interest, if the loan proceeds are not used for home improvements. Accord-ingly, the more exemptions and deductions you normally claim, the more likely it is that you’ll have an AMT liability.

On the positive side, there is a special AMT exemption designed to prevent the AMT from applying to those with modest incomes. For the 2012 tax year, the exemp-tion is $78,750 for joint fi lers and $50,600 for individuals. As part of the agreement

this month to avoid going over the fi scal cliff , Con-gress agreed that in future years the AMT exemption will be indexed to infl ation. Th at means taxpayers who for the 2012 tax year aren’t faced with the AMT

won’t have to worry about it in the future unless they see an income boost that outstrips the rate of infl ation.

Certain circumstances and tax items are likely to trigger the AMT:

• If your gross income is above $100,000• If you have large numbers of personal

exemptions• If you have signifi cant itemized

deductions for state and local taxes, home equity loan interest, deductible medical expenses (AMT has a slight diff erence) or other miscellaneous deductions

• If you exercised incentive stock options (ISOs) during the year

• If you had a large capital gain, which may reduce or eliminate the AMT exemp-tion amount

• If you have passive income or losses• If you received income from private

activity municipal bondsIf any of the above applies to you, you

should complete the AMT worksheet when preparing your taxes. If you don’t, rest assured the IRS will. And if they fi nd that you owe AMT, they’ll add penalties and interest.

Because large one-time gains and big deductions that trigger the AMT are sometimes controllable, you may be able to avoid or minimize the impact of the AMT by planning ahead. Some practical suggestions include delaying an asset sale or spreading the gain over a number of years by using an installment sale, timing payments of state taxes, home equity loan interest (if the loan proceeds are not used for home improvements) and other itemized deductions to fall in years when you won’t face the AMT, and time when and how you exercise ISOs.

Tax planning issues relating to the AMT are comprehensive. Consult your advisor to help you evaluate what steps you can take to avoid or minimize your exposure.

Contact W. David Fay, a second vice

president in wealth management and

fi nancial advisor with Morgan Stanley Smith

Barney, at http://fa.smithbarney.com/

thefaymillergroup or (502) 745-7069.

W. DAVID FAY

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

Company Name Symbol Jan. 9 Jan. 2 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.03 0.03 0.00 0.02 0.12CDEX Inc CEXIQ.OB 0.11 0.09 0.02 0.01 1.00Providence Service Corp PRSC 16.94 17.26 -0.32 9.56 17.94UniSource Energy Corp (Tucson Electric Power) UNS 43.50 43.71 -0.21 35.20 44.15

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 9.08 8.99 0.09 7.97 10.92AMR Corp (American Airlines) AAMRQ 1.29 0.86 0.43 0.32 1.30Augusta Resource Corp (Rosemont Mine) AZC 2.62 2.53 0.09 1.48 3.65Bank Of America Corp BAC 11.43 12.03 -0.60 6.41 12.20Bank of Montreal (M&I Bank) BMO 62.96 62.10 0.86 50.95 63.16BBVA Compass BBVA 9.97 9.57 0.40 5.30 9.98Berkshire Hathaway (Geico, Long Cos) BRK-B* 93.32 93.20 0.12 76.91 94.34Best Buy Co Inc BBY 11.59 11.81 -0.22 11.20 27.95BOK Financial Corp (Bank of Arizona) BOKF 55.59 55.51 0.08 50.89 60.00Bombardier Inc* (Bombardier Aerospace) BBDB 3.90 3.85 0.05 2.97 4.93CB Richard Ellis Group CBG 20.57 20.36 0.21 14.97 21.16Citigroup Inc C 42.04 41.25 0.79 24.61 43.25Comcast Corp CMCSA 38.42 38.52 -0.10 25.15 38.58Community Health Sys (Northwest Med Cntrs) CYH 32.84 31.22 1.62 16.37 33.33Computer Sciences Corp CSC 41.09 41.50 -0.41 22.19 41.86Convergys Corp CVG 17.03 16.62 0.41 12.13 17.50Costco Wholesale Corp COST 101.23 101.45 -0.22 78.98 105.97CenturyLink (Qwest Communications) CTL 39.83 40.18 -0.35 36.31 43.43Cvs/Caremark (CVS pharmacy) CVS 50.28 49.68 0.60 41.48 50.28Delta Air Lines DAL 13.11 12.23 0.88 8.22 13.38Dillard Department Stores DDS 80.06 81.53 -1.47 43.70 89.98Dover Corp (Sargent Controls & Aerospace) DOV 67.23 67.24 -0.01 50.27 67.92DR Horton Inc DHI 21.15 20.39 0.76 13.45 22.79Freeport-McMoRan (Phelps Dodge) FCX 35.22 35.17 0.05 30.54 48.96Granite Construction Inc GVA 34.56 34.85 -0.29 21.38 34.92Home Depot Inc HD 63.17 63.48 -0.31 42.92 65.92Honeywell Intl Inc HON 66.54 64.75 1.79 52.21 66.80IBM IBM 192.32 196.35 -4.03 177.35 211.79Iron Mountain IRM 32.51 32.08 0.43 27.10 37.70Intuit Inc INTU 62.16 61.95 0.21 53.38 62.86Journal Communications (KGUN 9, KMXZ) JRN 5.21 5.66 -0.45 3.94 5.85JP Morgan Chase & Co JPM 45.47 44.66 0.81 30.83 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 37.96 38.18 -0.22 27.96 38.62KB Home KBH 16.48 16.29 0.19 6.46 17.30Kohls Corp KSS 41.95 42.21 -0.26 41.35 55.25Kroger Co (Fry's Food Stores) KR 25.55 26.37 -0.82 20.98 27.11Lee Enterprises (Arizona Daily Star) LEE 1.17 1.18 -0.01 0.69 1.81Lennar Corporation LEN 41.71 39.88 1.83 20.97 42.00Lowe's Cos (Lowe's Home Improvement) LOW 34.88 36.19 -1.31 24.76 36.47Loews Corp (Ventana Canyon Resort) L 42.11 41.53 0.58 37.02 43.36Macerich Co (Westcor, La Encantada) MAC 58.79 58.80 -0.01 51.43 62.83Macy's Inc M 36.69 38.31 -1.62 32.31 42.17Marriott Intl Inc MAR 38.90 38.79 0.11 32.79 41.84Meritage Homes Corp MTH 42.12 38.14 3.98 23.41 43.02Northern Trust Corp NTRS 52.15 51.81 0.34 40.64 53.50Northrop Grumman Corp NOC 67.04 68.17 -1.13 56.56 71.25Penney, J.C. JCP 18.80 20.84 -2.04 15.69 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 19.49 18.60 0.89 7.29 19.80Raytheon Co (Raytheon Missile Systems) RTN 58.21 58.62 -0.41 47.50 59.34Roche Holdings AG (Ventana Medical Systems) RHHBY 52.32 51.30 1.02 38.63 52.33Safeway Inc SWY 17.40 18.35 -0.95 14.73 23.16Sanofi -Aventis SA SNY 48.07 47.92 0.15 33.03 48.65Sears Holdings (Sears, Kmart, Customer Care) SHLD 40.77 41.70 -0.93 30.54 85.90SkyWest Inc SKYW 13.63 12.71 0.92 6.25 14.32Southwest Airlines Co LUV 11.00 10.47 0.53 7.76 11.27Southwest Gas Corp SWX 42.41 43.38 -0.97 39.01 46.08Stantec Inc STN 42.18 42.07 0.11 25.74 42.55Target Corp TGT 60.18 58.82 1.36 48.51 65.80TeleTech Holdings Inc TTEC 18.11 17.96 0.15 14.04 18.26Texas Instruments Inc TXN 32.00 32.31 -0.31 26.06 34.24Time Warner Inc (AOL) TWX 49.63 49.76 -0.13 33.62 50.28Ual Corp (United Airlines) UAL 25.64 24.19 1.45 17.31 26.11Union Pacifi c Corp UNP 130.89 128.46 2.43 104.08 131.78Apollo Group Inc (University of Phoenix) APOL 19.32 21.18 -1.86 18.36 58.29US Airways Group Inc LCC 15.13 13.98 1.15 5.67 15.50US Bancorp (US Bank) USB 33.27 32.97 0.30 27.30 35.46Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 68.57 69.24 -0.67 57.18 77.60Walgreen Co WAG 38.45 38.06 0.39 28.53 38.56Wells Fargo & Co WFC 34.71 35.05 -0.34 28.77 36.60Western Alliance Bancorp (Alliance Bank) WAL 11.44 11.01 0.43 7.10 11.64Zions Bancorp (National Bank of Arizona) ZION 21.85 21.99 -0.14 16.40 22.81Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 53.92 54.06 -0.14 47.00 55.20Walgreen Co WAG 35.50 34.19 1.31 21.39 40.69Wells Fargo & Co WFC 27.66 27.33 0.33 7.80 31.53Western Alliance Bancorp (Alliance Bank) WAL 5.65 4.82 0.83 2.99 9.22Zions Bancorp (National Bank of Arizona) ZION 18.67 18.05 0.62 5.90 20.97Data Source: Dow Jones Market Watch

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


INSIDE REAL ESTATE & CONSTRUCTION

A skinny dip: Home foreclosures sink by 146 noticesBy Roger YohemInside Tucson Business

Now that 2012 is offi cially in the books, stronger economic fundamentals are in place for 2013 to be a better year for the re-gion’s real estate market.

Notices of trustee’s sales, the fi rst step in the home foreclosure process, trended down for the third straight year in 2012 since peaking at 12,184 notices in 2009.

Although the drop was ever so slight, the dip is a welcome sign in an industry that continues its slow recovery from the Great Recession.

Last year, 9,287 trustee’s sale notices were fi led with the Pima County Recorder’s Offi ce, a dip of just 1.5 percent, or 146 no-tices, from 2011. Th at represented the small-est decline since the 2009 peak.

Year over year, notices had decreased the most in 2011 from 2010, falling by 19 per-cent or 2,230 notices (see table).

Notices averaged 774 per month in 2012 compared to 786 monthly in 2011.

At the back end of the trustee’s notice process, when homes actually go through foreclosure, distressed home sales suff ered a steep decline in 2012 from 2011.

Year-over-year, trustee’s sales fell by 16 percent, to 5,818 from 6,956 in 2011.

Distressed sales averaged 485 per month in 2012 compared to 580 in 2011.

For the past fi ve years, foreclosures have impacted the entire market. While the hous-ing market continues to grind out a recov-ery, the key factor remains the pace of sell-ing off distressed inventory.

Ramada Inn foreclosedRamada Foothills Inn and Suites, 6944 E.

Tanque Verde Road, has fallen into foreclo-sure and is to be sold at public action sched-uled for March. Th e property features 115 deluxe guest rooms and two-room suites, pool and spa, a 1,100 square-foot meeting room and a business center.

Owners DK TIC LLC and VNM Foothills TIC LLC, both registered in Delaware, are delinquent on an original $6.225 million note, according to public records. Th e prop-erty was renovated last year.

Th e benefi ciary is RFH Servicing LLC, Las Vegas. Th e trustee’s sale is being han-dled by Security Title Agency, 3636 N. Cen-tral Ave., Phoenix. Th e auction is scheduled for 11:30 a.m. March 27 at the Pima County Courts Building, 110 W. Congress St.

Web-based forecastSince Bright Future Real Estate Research

will not present an annual housing forecast this year, owner Ginger Kneup is directing interested parties to a colleague in Phoenix. RL Brown will present his outlook as an In-

ternet forum at 10 a.m., Jan. 24.Brown, CEO of RL Brown Housing Re-

ports, has been a frequent speaker at Bright Future’s forums when it was owned by John Strobeck. Kneup, who took over the busi-ness in August, is on maternity leave and unable to organize the event this year.

Although Brown’s analysis concentrates on the Phoenix housing market, Kneup be-lieves his forecast could off er some insight into Tucson market trends. He will give a review of housing’s 2012 performance and a forecast through 2016.

As a Web forum, multiple people can “tune in” for one admission price. Make res-ervations online at www.rlbrownreports.com before Jan. 21 for $95. After that, it goes up to $125.

TUCA awards Th e Tucson Utility Contractors Associa-

tion (TUCA) will hold its annual installation and awards dinner Jan. 26 at the Marriott University Park Hotel, 880 E. Second St. Th e cost is $85 per person.

TUCA Executive Director Ramon Gaanderse will lead the ceremonies along with the association’s 2012 president Chris Albright of KE&G Construction. Th e event begins with a 5:30 p.m. reception followed by dinner at 6:45 p.m.

For reservations, email [email protected] or call (520) 624-0444. Also, a few spon-sorship opportunities remain available.

Sales and leases • Nevada Equity Partners purchased

Swanway Plaza, 4700 – 4730 E. Broadway for $10.35 million from Swanway Develop-ment Company, represented by Greg Fur-rier, Picor Commercial Real Estate Services.

Th e 60,000 square-feet of retail buildings on six acres at the southeast corner of East Broadway and Swan Road consists of tenant s Guitar Center, Ace Hardware, Anna’s Lin-ens, Catherines Plus Sizes, Goodcents Deli Fresh Subs and Walgreens.

• MCS Capital Partners LLC of Phoenix purchased Arizona Commons II, 1920 N. First Ave., for $5.6 million from C-III Asset Management LLC, acting as special ser-vicer for Wells Fargo Bank, the trustee for holder Morgan Stanley I Inc. Th e complex, built in 1972, features 247 student housing beds in 88 units. Th e transaction was han-dled by David Fogler and Steven Nicoluza-kis with Cassidy Turley Arizona.

• Amerco, a division of U-Haul, pur-chased A Lotta Storage & Mail, 7651 N. In-terstate 10 Frontage Road, Marana, for $3.2 million from Pacifi c Western Bank. Th e transaction was handled by Bill Alter and Denise Nunez, Rein & Grossoehme.

• Armada Financial LLC, Airways Park & Fly LLC and Super Park LLC purchased fi ve commercial parcels totaling 18 acres for $2.25 million. Th e acquisition includes a 23,172 square-foot building occupied by Raytheon Missile Systems and parking lots near the Tucson International Airport. Ad-dresses of the parcels are: 6840 S. Tucson Blvd., 2299 and 2385 E. Valencia Road, 2320 E. Aragon Road, 2355 E. Elvira Road and 2332 E. Weiding Road. Th e seller was Ster-ling Savings Bank, represented by Rick Volk, Volk Company. Th e buyers were represent-ed by Peter Miller, Keller Williams.

• Monterey Water Company purchased 4702 E. Grant Road, for $620,000 from Cox Investment Group LLC, represented by Pat Darcy, Tucson Realty & Trust Co. Th e parcel consists of a 2,261 square-foot gasoline ser-vice station on 21,687 square feet of land.

• Corner Stone Homes LLC purchased six vacant 3.33-acre lots on the north side of West Ina Road just west of Silverbell Road for $415,000. Th e undeveloped subdivision is named Silver Shadows. Th e seller was SBAZ Real Estate Holdings LLC. Th e trans-action was handled by Th rac Paulette, Vast Commercial Real Estate.

• SAJE Investments LLC purchased 29,999 square feet of land near the north-west corner of Sabino Canyon and Snyder roads for $250,000. Th e buyer, who plans to build a veterinary clinic, was represented by Mike Hennessy, Burris Hennessy. Th e seller was Brakemax Corporate LLC, represent-ed by Dave Hammack, Volk Company.

• Innate Living Chiropractic leased 1,859 square feet at 1050 E. River from Ash-land Group, represented by Bruce Suppes and David Volk with CBRE. Th e tenant was represented by Doug Marsh with Oxford Re-alty Advisors.

Email news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.

THE PULSE: TUCSON REAL ESTATE

12/31/2012 12/24/2012

Median Price $141,000 $139,000Active Listings 5,023 4,837New Listings 363 166Pending Sales 233 194Homes Closed 140 155Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 3.50% 3.75%APR 3.38% 3.625%APR 4.95% 4.95% 3.38%

15 YEAR 2.88% 3.125%APR 2.75% 3.00% APR 4.22% 4.22% 2.75%

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

1/8/2013

Pima County Recorder’s Offi ce data

Notices of Trustees Sales Pima County Recorder Foreclosure

2007 2008 2009 2010 2011 2012January 346 699 882 863 975 705February 276 598 1,016 982 762 918March 305 661 1,154 1,089 948 904April 300 700 1,093 985 721 910May 396 720 991 890 748 984June 377 742 1,002 862 693 946July 419 721 1,063 1,111 666 797 August 503 814 1,130 1,067 917 794September 394 782 1,008 1,090 797 625October 483 921 948 1,019 816 638November 540 675 859 829 754 534December 475 923 1,038 876 636 532 Total 4,814 8,956 12,184 11,663 9,433 9,287 Monthly avg. 401 746 1,015 972 786 774


Lord willing and the creeks don’t rise, you should receive next week’s Jan. 18 issue of Inside Tucson Business before the sun comes up that day.

Th at’s the fi rst issue of Inside Tucson Business that will be delivered by the same people who currently deliver other newspapers throughout the Tucson region, including the Arizona Daily Star, Wall Street Journal, Arizona Republic, Th e New York Times, USA Today and others.

Th at means this is my fi nal plea for you to double check your delivery address. Th e mailing label on the front page of your copy of this week’s issue contains the address our circulation department has on hand. Th at’s the address where next week’s issue of Inside Tucson Business will be delivered by 6 a.m. Jan. 18. But, like other newspapers, next week’s issue will not have a mailing label on it. It will be delivered just like other newspapers, in a bag.

If your address is in a large offi ce or other building that’s not conducive to newspaper deliveries, I implore you to change it to your home. Send an email to [email protected], put “Change my delivery address” in the subject line and in the body of the email include your address as it appears on the address label along with the new address where you would like your copy delivered next week. You also can do this via fax to (520) 294-4040. Either way, please do it no later than the end of the day Monday.

If you wish to continue receiving your copy via the U.S. Postal Service we can do that but we need for you to specifi -cally request that option. Send an email to [email protected], put “ITB mail delivery” in the subject line and in the body of the email include your address as it appears on the address label. You can also do this by fax to (520) 294-4040. Obviously, those who have their copies of Inside Tucson Business delivered to post offi ce boxes will continue to receive it there as will those who live outside the delivery area.

Please note that with changes set to take eff ect next month at the U.S. Postal Service, including the closure of the Tucson mail sorting facility, in-town deliveries of Inside Tucson Business will likely be delayed.

Judging from other business journals that have switched delivery methods, I’m told we can expect some last-minute glitches. I’ve already heard from some subscribers who are wondering where to call about delivery issues. We’re setting up a customer service portal on our website — www.InsideTuc-sonBusiness.com — and a phone number, which, unfortu-nately I can’t tell you about as I write this because it hasn’t been established yet. Hopefully it will be in service by next Friday and you’ll be able to fi nd it on our website. Call by 2 p.m. if you don’t receive your copy on Friday morning and it should be delivered Saturday. Th at’s also where you can take care of matters such as starting and stopping delivery for vacations or changing delivery addresses.

When next Friday morning arrives I hope you go out to your driveway to pick up your copy of Inside Tucson Business. As your marketing campaign for the change has been saying, we’re looking forward to joining you for breakfast in the morning.

Contact David Hatfi eld at dhatfi [email protected] or

(520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

Meet you next Fridaymorning for breakfast

EDITORIAL

A less tempestuous Legislature?Th e 51st Arizona Legislature opens its fi rst session

next week and there’s an air that this year will be diff erent. Th ere is a real feeling that lawmakers may actually listen to constituents’ concerns and work to address issues facing the state rather than trying to ramrod a perceived agenda.

For business interests that’s a positive step for a state that has been made the laughingstock of the nation. As Inside Tucson Business reporter Patrick McNamara found in his report this week on the Legislative goals of business groups, most have a positive outlook for what could come from this session.

Republicans continue to hold majorities in both the state Senate and House, though no longer a super majority. Th at means the dynamics of how the 30 state senators and 60 representatives interact will most likely present opportunities for new and diff erent alliances.

For example, while conservative Andy Biggs, R-Gilbert, has replaced moderate Steve Pierce, R-Prescott, as state Senate president, Biggs has already made an impression by being outwardly conciliatory and willing to listen.

Fletcher McCusker, chairman of the Rio Nuevo Multipurpose Facilities District board, tells of how he had initial concerns with the actions Biggs might take with regard to revitalization of downtown Tucson. After the senator visited a Second Saturdays event, however, he told McCusker he wasn’t interested in wasting time going back to past misdeeds. “He basically said stay the course,” McCusker said.

Other Republicans in Senate leadership positions, majority leader John McComish and whip Adam Driggs, also are considered staunch conservatives but the fact is they will need moderates — and maybe even a few Democrats — to get some legislation passed.

Over in the House, Rep. Andy Tobin, R-Paulden, held on to his House Speaker position. Although he took criticism from some conservatives, Tobin has conserva-tive bona fi des, especially when it comes to taxes and

fi nancial matters Th e other two Republican leadership positions in the

House this session are majority leader David Gowan, Sierra Vista, and whip Rick Gray, Sun City. Of the three, Gowan is arguably the farthest to the right. Gray touts making Arizona business friendly as his highest priority.

From what reporter McNamara found there is a general concern among Southern Arizona business interests that the state must get back on track with education funding. A temporary 1 percent sales tax expires May 31 and, thanks to increased state revenues, there will be pressure from educators for lawmakers to replace money that was going to education, both K-12 and higher education including the state universities and community colleges.

Th ere also will be discussion on how the federal government’s Aff ordable Care Act, or Obamacare, plays out in Arizona, especially now that Gov. Jan Brewer has decided to cede responsibility to Washington, D.C., to establish and run the state’s exchange or marketplace that will be used by small businesses and consumers to buy health insurance with federal subsidies.

Th ere also will likely be a push to restore some of the cuts made in the state’s Medicaid program, which has severely hurt Arizona hospitals’ bottom line.

Th ere’s also an eff ort to simplify the various tax rates facing businesses across the state, especially the construc-tion sales taxes levied by various jurisdictions.

Also, expect proposals to encourage growth in the technology sector.

No doubt lawmakers will revisit the kind of legislation that tends to get them national attention, such as gun rights and illegal immigration. Let’s hope there’s some reason in the debate.

When all is said and done, what could be the real victory from this session of the Legislature may be traced to the decisions voters made in November when they elected senators and representatives who are willing to listen and act for their constituents.


OPINIONWAKE UP, TUCSON

A Q&A with Dr. Clark Petula, downtown know-it-all I sat down with noted downtown know-it-

all, Dr. Clark Petula. Th e success of down-town and the “modern streetcar” will be a crucial component to Tucson climbing out of the amazingly deep economic pit we fi nd ourselves in. Here’s what we talked about:

Chris DeSimone: What is your take on the modern streetcar?

Dr. Clark Petula: Th is deal is done. It can’t be rewound. It’s happening. Now, you have to make sure it’s executed execute correctly. Th e construction of the streetcar must be coupled with other actions to maximize the impact of such a massive investment of tax dollars.

DeSimone: What other actions are you referring to?

Petula: First, the city needs to ensure the higher density of commercial and residen-tial development along the streetcar line. Th is is crucial to promote high rider usage. Th is will help mitigate taxpayer subsidy, which will still be pretty substantial. Mayor Jonathan Rothschild deserves some kudos for helping along some of this private student residences near the line. Predict-ably, some of the neighbors are upset by the high-rise development, but tough. Th ey live next to a university with aggressive enrollment plans. Th ey despise the mini-dorm trend. Th is should take some

market pressure off of that situation. Th ey will never be happy with all of this.

Th e city is making some strides, but they still need to make it easier to open a business. I have been conversing with city staff who

are telling me there are City Development Services personnel who are angry that business owners are going to the mayor’s offi ce for help in getting their plans done in a timely manner. Th ese employees are saying things like they will try to make it even harder for those folks. Th at kind of petty foolishness must stop. It’s time to go forward, not backward.

DeSimone: What about the existing businesses down there?

Petula: Th ey have had a heck of a time. Th e city has dropped the ball. Th is is a project of almost $200 million, there must have been some dollars in there for business assistance. I know Britton Dornquast and the crew at Mainstreet are trying their best. Owners have complained

about a variety of problems: inconsistent information on completion dates, poor signage and lack of a marketing eff ort to inform folks about what is happening and how to get around it. We are in danger of losing some of the family-owned business council members say they are so con-cerned about. If they don’t watch it they may be stuck with chain stores. Th ey are the big companies that can withstand the bureaucracy of the city.

DeSimone: What about the Tucson Convention Center?

Petula: It is simultaneously both the albatross and the elephant in the room. For the past 20 years, that place has been a soap opera. City Manager Richard Miranda is to be commended for bringing in the (Tucson Police Captain Mark) Timpf team in to clean up the place. For those who think the thing should renovated so Tucson can get into the convention business, chill out. It would take more than $100 million just to try to compete against much better facilities in cities with real air service and plenty of hotel product adjacent or nearby. It is not feasible.

But what Tucson needs to do fi rst is preserve the February gem show. Taking some of the money from the Rio Nuevo tax increment fi nance district and putting it to

fi xing up the exhibit hall, manager’s offi ces and bathrooms would be a good step. After that, take the Leo Rich Th eater, the Music Hall and some of the other downtown theaters and operate them under one entity.

Th ese would be smart uses of time, money and people. Anything leftover should probably be converted to museum space. Museums — some paying $1 rents — could be put them under one roof. Imagine the Children’s Museum Tucson, Museum of Contemporary Art and other museums and galleries all in one place. It would be a great draw from all over the region and the interstate. Oh, and we should probably invest in billboard advertising to promote this excitement to the zillions of cars that pass by every day.

DeSimone: We are running out of time and column space. Any other quick ideas to help downtown?

Petula: Kill the name Rio Nuevo. Make sure the streetcar is open late enough for the bar-goers. Th ey may be your key demo for the fi rst couple of years.

DeSimone: Th anks for your time. Contact Chris DeSimone at provenpart-

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

CHRIS DESIMONE

GUEST OPINION

Unexpectedly, there’s one kind of care not covered by MedicareWith all the talk about government

entitlement programs and “Obamacare,” you might think we’re all covered for everything all the time. But a nasty surprise is waiting, and it’s likely to spring when you’re elderly, frail and on a fi xed income. Or when you’ve become disabled. When you need long-term care.

Long-term care is not hospital care. It’s personal and support care you receive in a nursing home, residential care facility such as assisted living or retirement community or your own home. It’s often the ongoing care you need as you age and are coping with chronic illness.

Th e nasty surprise is that Medicare doesn’t pay for long-term care. Only Medicaid or our in-state version, the Arizona Long Term Care System (ALTCS) provides long-term care for the general public. And, believe me, you don’t want to rely on ALTCS if you can avoid it.

Like Medicaid, ALTCS is a low-income program. To qualify as an individual you must have no more than $2,000 in assets and a monthly fi xed income of not more than $2,094. For couples both the asset and income levels are higher. Still, it’s a dismal way to end a lifetime of hard work.

If going on ALTCS still sounds pretty

good, please stop reading right now. But if you have assets to protect — or would rather not experience the sort of care a generous state like Arizona provides — there is a solution: long-term care insurance.

Maybe starting yet another insurance policy is not your top spending priority, but it could pay off hugely in the future. Th e U.S. Department of Health and Human Services says 40 percent of all Americans over age 65 will enter a nursing home at some point, and half of those will stay an average of 2½ years.

In Tucson, 24-hour care — at home or in a facility — is $225 or more a day, or more than $82,000 a year. Th at kind of out-of-pocket spending can burn through your life savings in a hurry.

Having a long-term care policy puts you in charge of your risk and your costs. Your regular monthly premium buys the comfort of knowing that you won’t be blindsided by a huge bill for long-term care.

Long-term care policies typically run

between about $150 a month for a basic policy to about $400 a month for a more comprehensive policy. Every policy is customized for the client, based on fi ve major points:

• How much the policy will pay per day of care

• How many years of care the policy will provide

• Th e number of days you pay out-of-pocket before benefi ts begin (often this is 90 days)

• What percentage of care will be provided in your home (many policyhold-ers choose 100 percent)

• How much the benefi ts will increase each year to adjust for infl ation

Riders added to the policy can increase both premiums and benefi ts. Naturally, the more generous the policy is, the more it will cost. Starting a policy earlier can save a lot; if you’re in your 40s or 50s and are looking ahead to retirement, it’s not too soon to consider starting a policy. It can be an important piece of your overall fi nancial planning.

Who am I to tell you all this? I run a home care company. My screened, trained, qualifi ed caregivers are scheduled to the clients’ homes to help with the activities of daily life such as personal hygiene, dressing,

shopping and cooking, home management, transportation, and medication reminders. Having a long-term care policy can make it possible for you to hire my company.

True, family members can — and often do — provide this care. But the work is often exhausting physically and emotion-ally and it can require the family caregiver to put his or her own life on hold. It can also redefi ne the relationship between the adult child and the aging parent in ways that are not good for either party.

If you want to enjoy your family, protect your assets, and plan responsibly for the future, please consider investing in a long-term care policy. To get started, there’s a free booklet titled ”A Shopper’s Guide to Long-Term Care Insurance” published by the National Association of Insurance Commis-sioners that gives a great deal of helpful, unbiased advice and information. It’s available wherever this type of insurance is sold.

Th e National Clearinghouse for Long Term Care Information, a website published by the U.S. Department of Health and Human Services, is another useful resource. You’ll fi nd it at www.longtermcare.gov.

Judy Clinco is founder and president of Catalina In-home Services Inc.

JUDY CLINCO


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

STAFFPUBLISHERTHOMAS P. [email protected]

EDITORDAVID [email protected]

STAFF WRITERROGER [email protected]

STAFF WRITERPATRICK [email protected]

STAFF RESEARCHERCELINDA [email protected]

WEB PRODUCERDAVID [email protected]

LIST COORDINATORJEANNE [email protected]

ART DIRECTORANDREW [email protected]

ADVERTISING DIRECTORJILL A’[email protected]

ACCOUNT EXECUTIVE LAURA [email protected]

ACCOUNT EXECUTIVEALAN [email protected]

ACCOUNT EXECUTIVEDAVID WHITE [email protected]

INSIDE SALES MANAGERMONICA [email protected]

DIGITAL SALES MANAGERJIM [email protected]

CIRCULATION MANAGERLAURA [email protected]

EDITORIAL DESIGNERDUANE [email protected]

CARTOONISTWES HARGIS

• 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, In-side Tucson Business, P.O. Box 27087, Tucson, AZ 85726-7087. Letters must include the writer’s name and tele-phone number. Inside Tucson Business reserves the right to edit and may not print all letters that are received.

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OPINIONADVOCATING FOR BUSINESS

Timeless business wisdom based on certaintiesYears ago, I had my own small market-

ing company. I worked with clients from Alaska to the Carolinas, so I was on the road a lot.

One of my clients was in Kalamazoo, Mich. When I fi rst walked into the lobby of that company, I noticed a little business card holder on the front desk. Instead of the name and contact information of the president or some other executive, there was a card with some timeless business wisdom.

I took one and have the card to this day. Here’s some of that timeless wisdom:

Certainties for the year to come• Business will continue to go where it

is invited and remain where it is appreci-ated.

What is your company’s strategy for inviting new customers to do business with you? No matter how good your company is, you’re probably going to lose some customers this year. Replacing them merely keeps you even. To grow, you have to create more customers than you lose. While you’re thinking about new customers, ask yourself if you have a strategy for hugging your current customers. Your current

customers will stay loyal as long as they know you care.

• Reputations will continue to be made by many acts and lost by one.

A customer service expert I once heard speak

said, “Customers will remember you by only two acts of customer service: their best experience and their last experience.” Great companies have customer service down to a science and it shows. Th ere’s quite a bit of diff erence between the clerk, who when thanked by a grateful customer responds, “My pleasure,” and the ubiquitous uncaring response heard from most clerks: “No problem.”

• People will go on preferring to do business with friends.

It’s true. We do business with people we like. We even give people we like a little margin for error once in a while because we like them and want to see them

succeed. Southwest Airlines just sent me some free drink coupons for my birthday. Nice. And they don’t charge a change fee when I screw up a reservation. Nice. Guess which airline I check fi rst when making reservations? Being friendly and making it easy to do business has advantages.

• Performance will continue to outsell promises.

Have you seen the latest craze with plumbers, electricians and cable company installers? Th ey are starting to guarantee they will arrive on time. Doing what you say you are going to do when you say you are going to do it used to be the stuff reputa-tions were built on. Now, it’s so out of the norm that it has become novel again. Performance will always outsell promises.

• Trust, not tricks, will keep customers loyal.

Th e explosion of online product and service ratings opportunities, Angie’s List, etc. are the latest ways we consumers have to fi nd out who we can trust and who we can’t. Trust is a powerful force in business. People want a square deal, not fast talk and excuses. Trust is the stuff customer referrals are made of.

• Th e extra mile will have no traffi c jams.

I once knew a sales rep who drove four hours each way to see an important customer when the customer was planning to make a major purchase. Th e rep’s competitors stayed home and used the telephone to reach out to the customer. Guess who got the sale? Another rep I know made a sales call at 2 a.m. on a company that did its baking production in the middle of the night and was too busy serving what they made to customers during the day to see sales reps. Guess who got the sale?

• Enthusiasm will be as contagious as ever.

Yup. Th ere is just no substitute for fi re in the belly. When you like what you do it shows — and it’s contagious.

Have a great year of success in 2013.

Contact Mike Varney, president and

CEO of the Tucson Metro Chamber, at

[email protected] or (520)

792-2250. His Advocating for Business

column appears monthly in Inside Tucson

Business.

MIKE VARNEY

Next week’s poll: What do you think should be the top priority of the Arizona Legislature in the 2013 session: Funding educationSimplifying the tax codeRestoring funding for roadsEnhancing trade with MexicoReducing regulations

Are you confi dent that Congress achieved a good

resolution in the “fi scal cliff” issue?Yes 7.7% No 92.3%

InsideTucsonBusiness.com


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