sierra vista economic outlook 2013

special thanks to our sponsorsThe organizations listed on the following pages sponsor the Cochise College Center forEconomic Research (CER). Their generous contributions allow the CER to undertakevarious research projects and studies, as well as hold annual economic outlook luncheonsand produce this publication. We greatly appreciate their generous support. Forinformation on how you can become a sponsor, please contact the CER at (520) 515-5486or by e-mail at [email protected].

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t able of contents1 review of the national, state, and local economy

by Dr. Robert Carreira, Director, Center for Economic Research

3 overcoming economic climate change by Charles P. Potucek, Sierra Vista City Manager

5 the city of Sierra VistaOverviewCost of LivingTax RatesCrime Rate

8 economic developmentOverviewSierra Vista Economic Development FoundationSierra Vista Industrial Development AuthoritySierra Vista Municipal AirportWest End DevelopmentQuality of LifeOur Future Vistas – City Council Strategic Leadership PlanEnvironmental CodesForeign Trade ZoneArizona Quality Jobs Tax CreditArizona Competitive Incentives, Programs, and GrantsSouthEastern Arizona Governments OrganizationCochise College Small Business Development Center

12 educationPrimary and Secondary EducationPostsecondary Educational OpportunitiesEducational Attainment

16 healthcareOverviewSierra Vista Regional Health Center

19 demographicsPopulation Estimates and ProjectionsRace and EthnicityAge GroupsHousehold CharacteristicsIncomeMilitary Veterans

22 employmentArizona Department of Economic SecuritySoutheast Arizona Workforce ConnectionEmployment, Unemployment, Labor Force, and Job GrowthOccupations and Classes of WorkersIndustriesMajor EmployersWagesCochise County EmploymentOutlookA Note on Employment Data

28 retail trade and commerceSierra Vista Area Chamber of Commerce Population Served by Sierra Vista’s Retail MarketTaxable SalesRetail SalesRestaurant and Bar SalesAccommodation SalesBusiness Establishments and LicensesSierra Vista Retail Out-Shopping SurveyOutlook

34 housing, real estate, and commercial constructionResidential ConstructionMajor Planned DevelopmentsHome SalesManufactured Home SalesHousing AffordabilityVA FinancingAffordable Housing DevelopmentsRental MarketCommercial ConstructionOutlook

40 banking and bankruptcy filingsBankingBankruptcy Filings

42 MexicoOverviewNaco, SonoraAqua Prieta, SonoraEconomic Impact of Mexican VisitorsU.S. Travelers to Mexico

46 Fort HuachucaOverviewEconomic Impact

48 Cochise County agricultureOverviewAgritourism

50 tourism and travelOverviewAttractions and ActivitiesTourism Trends and Marketing in Sierra VistaCochise County and Sierra Vista Lodging

54 renewable energyRenewable Energy Incentives

55 community resources

57 about the CER

NationalIn 2008 and 2009, the national economy lost 8.7 million jobs. From 2010

through 2012, the economy gained back 4.7 million jobs. In 2012, 1.8 million jobswere created, approximately the same level as 2011. The national unemploymentrate in 2012 was 8.1 percent. Unemployment declined relatively steadily throughoutthe year, with the seasonally adjusted monthly rate falling to 7.8 percent inNovember and December 2012. This was down from the peak of 10 percent inOctober 2009. The nation’s gross domestic product (GDP), the broadest measure ofeconomic activity measuring the value of all goods and services produced in theeconomy, was up for 13 consecutive quarters from the third quarter of 2009 throughthe third quarter of 2012. Real (inflation-adjusted) GDP declined 0.3 and 3.1percent, respectively, in the recessionary years of 2008 and 2009. GDP then increasedby 2.4, 1.8, and 2.2 percent in 2010, 2011, and 2012, respectively. Advance estimatessuggest GDP declined 0.1 percent in the fourth quarter of 2012 due to cuts in

military spending and a decline in exports. Consumer price inflation was 1.6 percent in 2010, 3.2 percent in2011, and 2.1 percent in 2012. Higher inflation in 2011 was attributable to a spike in oil and energy prices mid-year, which also contributed to slower economic growth as consumers pulled back on other spending.Consumer price inflation slowed in 2012 led by declines in oil and energy.

ArizonaArizona’s GDP grew 1.1 percent in 2010 and 1.5 percent in 2011, after falling 1.2 and 8.2 percent in 2008

and 2009, respectively. Arizona’s economic decline in 2009 was the second largest in the nation behindMichigan. In 2011, Arizona’s economic growth was 18th highest nationally, outperforming 32 of the other 50states. Arizona gained 50,500 jobs in 2012 for job growth of 2.1 percent. The vast majority of the job creationwas in the private sector, which added 48,300 jobs for growth of 2.4 percent. Government added 2,200 jobs forgrowth of 0.5 percent. In 2012, the statewide unemployment rate was 8.3 percent. The monthly rate inDecember was 7.9 percent, down from its peak of 10.8 percent in March 2011. The Arizona state budget finished

review of the national, state, and local economy

Dr. Robert CarreiraDirector

Center for Economic ResearchCochise College

1S I E R R A V I S T A E C O N O M I C O U T L O O K • 2 0 1 3

Photo: City of Sierra Vista

fiscal year 2012 with an estimated surplus of $450 million, following several years of deficits closed throughbudget cuts, borrowing, and a temporary increase in the state’s sales tax rate, which expires June 1, 2013.

Cochise CountyIn 2012, Cochise County lost 50 nonfarm jobs for annual job growth of -0.1 percent. The county’s private

sector stabilized at 2011 employment levels in 2012, while government lost 50 jobs for growth of -0.4 percent.Within the private sector, construction, manufacturing, educational and health services, leisure and hospitality,other services, and trade, transportation, and utilities expanded, while professional and business services lostjobs. Employment levels in the information industry and financial activities stabilized in 2012. Cochise County’sannual unemployment rate in 2012 was 7.9 percent. The monthly rate in December 2012 was 7.8 percent, downfrom its peak of 9.2 percent in April 2011.

In 2011, retail sales countywide were down 1.2 percent after adjusting for inflation. Retail rebounded in thefirst 11 months of 2012, with sales up 2 percent compared to the same period of 2011. Retail sales were up inseven of the nine months ended in November 2012. Cochise County’s restaurant and bar sales were down 0.2percent in 2011 and 4.8 percent in the first 11 months of 2012. Sales were down in 12 of the 14 months endedin November 2012. Countywide accommodation sales, which include hotel, motel, RV park, and othertemporary lodging stays of less than 30 days, were down 13.1 percent in 2011 and 17.2 percent in the first 11months of 2012. The countywide accommodation industry has struggled in recent years with sales down in 23of the 26 months ended in November 2012.

New residential construction permits in Cochise County were down 14.7 percent in 2012—the seventhconsecutive year of decline. The number of new home permits in 2012 was down more than 75 percent fromits peak in 2005. Sales of new and existing site-built homes in Cochise County hit bottom in 2008. Since then,sales have seen modest growth in 3 of 4 years. Sales volume in 2012 was up 3.8 percent from the trough in 2008,but remained 40 percent below their 2005 peak. The countywide median price of site-built homes fell 6.1percent in 2012—the fifth consecutive year of decline. The median price in 2012 was 29.1 percent below thepeak in 2007, and remained below 2004 levels. In 2012, 26.4 percent of site-built homes sold countywide wereforeclosures, down from 30 percent in 2011. Sales of existing manufactured homes countywide were up 29.5percent in 2012. Countywide sales volume was up nearly 80 percent from the trough in 2009, but remainedmore than 30 percent below the 2005 peak. The median price of manufactured homes countywide dropped for5 consecutive years from 2008 through 2012. In 2012, 43.6 percent of manufactured home sales countywidewere foreclosures.

Sierra VistaSierra Vista saw a net loss of 237 jobs in 2012 for job growth of -1.3 percent. Sierra Vista’s annual

unemployment rate in 2012 was 7.6 percent. In December 2012, the city’s seasonally adjusted monthly rate was7.4 percent.

In the first 11 months of 2012, retail sales in Sierra Vista were down 1.8 percent compared to the sameperiod the year prior. That was the fifth consecutive year of decline. For most of 2012, Sierra Vista’s monthlyretail sales alternated between positive and negative growth compared to the same months the year prior, withsales down in 4 of 7 months from May through November. Restaurant and bar receipts in Sierra Vista in the first11 months of 2012 were down 10.3 percent, following three consecutive years of growth. The city’s restaurantand bar sales were down in 16 of the 22 months ended in November 2012. From January through November2012, accommodation receipts in Sierra Vista were down 26.6 percent. This followed a 10.1 percent decrease in2011. Sales were down in 20 of the 22 months ended in November 2012.

In 2012, the number of new residential construction permits issued in Sierra Vista was down 8.2 percent,following a 9.5 percent increase in 2011. The number of new home permits in 2012 was down more than 75percent from the 2004 peak. Sales of new and existing site-built homes in the Sierra Vista area were down in 6of 7 years from 2006 through 2012. The only year to see an increase was 2009, with modest growth of 2.4percent. Sales in 2012 were down more than 50 percent from their 2005 peak. The median home price in theSierra Vista area declined 6.2 percent in 2012—the fifth consecutive year of decline. The median price in 2012was 22.4 percent below the 2007 peak and was only slightly above 2004 levels. In 2012, foreclosed homesaccounted for 22.5 percent of site-built home sales—the same level as 2011. Sales volume of existingmanufactured homes in the Sierra Vista area was up 26.7 percent in 2012. Despite the increase, sales volumeremained more than 50 percent below the 2005 peak. The median price of manufactured homes in the SierraVista area dropped for 5 consecutive years from 2008 through 2012. In 2012, 47.7 percent of manufacturedhomes sales were foreclosures.

2 S I E R R A V I S T A E C O N O M I C O U T L O O K • 2 0 1 3

Sierra Vista city government continues to adapt to an ever-changingeconomic climate brought about by the cyclical nature of the defense budget. Infact, the very history of Sierra Vista revolves around these cycles. As we enter 2013,we find ourselves dealing with yet another down cycle on top of the alreadychallenging national and statewide economic situation.

Our city council members—building upon strategies used to assist the city insuccessfully navigating the past four years of economic downturn—will look touse a number of tools to guide us in shaping our future.

The first of these is the “Dream Your City” interactive public process to gaincommunity input in formulating our Vista 2030 general plan. The new generalplan will go before voters in November 2014, and, if approved, will serve as theframework for all of our planning processes over the next 10 years. To view theresults of the interactive public process, visit www.SierraVistaAz.gov and click on

the “Dream Your City” banner.

Next, the council will engage in developing the city’s 2013-2015 Strategic Leadership Plan (SLP). The SLPwill specify objectives for the city to achieve over the next two years in support of the longer-term goalsestablished by Vista 2030 and other longer-term goals set by the council. The SLP will also serve to establishannual budget priorities, helping to ensure the city continues to provide quality services to residents.

The current economic climate certainly impacts how the city provides those quality services. Over thepast five years, budgetary constraints have resulted in reductions of approximately 20 percent of city staff,primarily in administrative and middle management capacities. We accomplished this while maintaininglevels of police officers, firefighters, and public works employees. We successfully addressed staffing lossesthrough restructuring, increased productivity through technological improvements, or by simply askingremaining employees to take on more responsibilities. I thank them for responding so well to sometimesdifficult circumstances.

overcoming economic climate change

Charles P. PotucekCity Manager

City of Sierra Vista

Sierra Vista Mayor and CouncilPhoto: City of Sierra Vista


Because we cannot predict when defense spending will increase, the city council wants to place increasedemphasis on economic development. Currently performed via contract with the Economic DevelopmentFoundation, the council envisions a community-wide approach with a focus on diversifying our economicbase while maintaining an emphasis on Fort Huachuca and its missions. While the nature of those missionswill keep the post strong, we must vigilantly watch how the Department of Defense changes will impact SierraVista in the future.

Despite the challenges of the past few years and the ones presented by the current economic climate,Sierra Vista remains a vibrant community with a bright future. We owe that to the individual hard work,volunteerism, and adaptability of the people of our community.

Despite thechallenges…Sierra

Vista remains avibrant community

with a brightfuture.


OverviewSierra Vista—the largest city in Cochise County—is located along State Routes 90 and 92, approximate-

ly 94 miles southeast of Tucson, 205 miles southeast of Phoenix, and 30 miles from Interstate 10. The city isat an elevation of 4,623 feet. Monthly temperatures range from an average low of 34°F in January andDecember to an average high of 93°F in June. The founding of Sierra Vista was tied to the establishment ofwhat is today Fort Huachuca. Early ranchers, homesteaders, and business entrepreneurs began to settle andbuild around the army encampment in the late 1800s and the city was incorporated in 1956. In 1971, FortHuachuca was annexed into the city. Sierra Vista is the retail hub of Cochise County, serving a commercialmarket of more than 110,000 people. Large retail chains including Wal-Mart, Target, Kmart, Sears, Dillard’s,

the City of Sierra Vista

SIERRA VISTA WEATHER

MONTH AVG. HIGH AVG. LOW MEAN AVG. PRECIP.January 61°F 34°F 48°F 0.98 inFebruary 65°F 37°F 51°F 0.72 inMarch 70°F 42°F 56°F 0.52 inApril 77°F 47°F 62°F 0.41 inMay 85°F 55°F 70°F 0.30 inJune 93°F 63°F 78°F 0.51 inJuly 92°F 66°F 79°F 3.11 inAugust 89°F 65°F 77°F 3.82 inSeptember 87°F 60°F 74°F 1.45 inOctober 79°F 51°F 65°F 0.93 inNovember 70°F 41°F 56°F 0.44 inDecember 62°F 34°F 48°F 1.03 in

Source: The Weather Channel ©

Carr Canyon PeakPhoto: courtesy of City of Sierra Vista


Marshall’s, Home Depot, Lowe’s,Staples, PetSmart, and Best Buyare located in the city and servecustomers from across CochiseCounty, neighboring Santa CruzCounty, and across the U.S. bor-der with Mexico. The city ishome to The Mall at Sierra Vista,a one-story enclosed regionalshopping mall. In recent years,the city’s restaurant industry hasexpanded considerably and nowincludes such large chains asApplebee’s, Buffalo Wild Wings, Chili’s, IHOP, Olive Garden, Outback Steakhouse, Panda Express, and TexasRoadhouse. A boom in commercial construction from 2005 through 2011 added several new hotels, restau-rants, large retailers including a new Wal-Mart Supercenter, office complexes, and other businesses.

Cost of LivingAccording to the Council for Community and Economic Research’s Cost of Living Index, Cochise

County’s cost of living in 2012 was 2.5 percent higher than the average of more than 300 participating placesnationwide. This was up from 0.4 percent below the average in 2011. In 2012, all categories of cost were high-er in Cochise County than nationwide except grocery items and health care. Local grocery costs were 2.2 per-cent below the national average, up from 4.4 percent below in 2011. Healthcare costs were 0.5 percent belowthe national average, up from 2 percent below in 2011. Transportation costs, which include gasoline and auto-mobile maintenance, were 6.6 percent above the national average in 2012, down from 8.8 percent above in2011. The local cost of utilities was 3.4 percent above the national average, up from 8 percent below in 2011.The cost of housing in Cochise County was 2.8 percent above the national average in 2012, up from 0.4 per-cent below in 2011. The local cost of miscellaneous goods and services was 2.7 percent above the nationalaverage in 2012, up from 0.9 percent above in 2011. The cost of living in Cochise County in 2012 was 7.3 per-cent higher than Tucson and 5.9 percent higher than Phoenix.

Tax RatesTRANSACTION PRIVILEGE TAX

In 2010, with the passage of Proposition 100, Arizona’s transaction privilege tax (sales tax) rate increasedfrom 5.6 to 6.6 percent for a period of 3 years, reverting to 5.6 percent on June 1, 2013. The county rate is 0.5percent for most categories of sales. The general sales tax rate in Sierra Vista is 1.75 percent for a total (city,county, and state) tax rate of 8.75 percent, which reverts to 7.75 percent with the expiration of the Proposition100 increase. City rates are higher for utilities, telecommunications, construction contracting, lodging, andrestaurant and bar (see table). The city also levies a tax of 1 percent on rental real estate.

PROPERTY TAX.The combined total of all primary and secondary

city, school district, county, state, and special districtproperty taxes for property located in Sierra Vista is$9.6788 per $100 assessed value for the 2012-2013 taxyear, up from $8.8410 the year prior. In Arizona,assessed value is based on an assessment ratio of theproperty’s value, as follows:


SIERRA VISTA/DOUGLAS MICROPOLITAN AREA COST OF LIVING

MISC.COMPOSITE GROCERY TRANS HEALTH GOODS &

INDEX ITEMS HOUSING UTILITIES PORTATION CARE SERVICES

2008 100.2 104.9 103.1 97.7 100.9 100.5 96.4

2009 99.2 100.3 104.1 94.3 102.6 97.4 94.7

2010 97.8 96.5 99.4 97.4 104.0 95.9 95.5

2011 99.6 95.6 99.6 92.0 108.8 98.0 100.9

2012 102.5 97.8 102.8 103.4 106.6 99.5 102.7

Note: The Sierra Vista-Douglas Micropolitan Area is a statistical area designation for all of Cochise County.Sierra Vista and Douglas are included in the title since they are the principal cities that meet the criteria forestablishing Cochise County as a Micropolitan area. The average for all participating places nationwide equals100 and each participant’s index is read as a percentage of the average for all places. Source: Council forCommunity and Economic Research (C2ER), Cost of Living Index.

COST OF LIVING COMPARISONS

SIERRA VISTA- PRESCOTT-DOUGLAS BULLHEAD LAKE PRESCOTT

MICRO AREA* TUCSON PHOENIX SCOTTSDALE FLAGSTAFF CITY HAVASU VALLEY YUMA

2008 100.2 99.6 101.1 N/A 118.3 N/A 112.2 107.2 105.4

2009 99.2 99.1 98.4 N/A 114.1 N/A 109.7 105.3 103.2

2010 97.8 96.4 100.6 N/A 114.8 N/A 111.7 103.6 101.1

2011 99.6 95.0 96.5 N/A 113.3 N/A 108.9 103.7 103.5

2012 102.5 95.5 96.8 115.4 111.6 91.9 104.3 98.6 105.2

N/A = data not available. The Sierra Vista-Douglas Micropolitan Area is a statistical area designation for all of Cochise County. Sierra Vista andDouglas are included in the title since they are the principal cities that meet the criteria for establishing Cochise County as a Micropolitan area.Note: The average for all participating places nationwide equals 100 and each participant’s index is read as a percentage of the average for all places.Source: Council for Community and Economic Research (C2ER), Cost of Living Index.

• Class 1: Mines, mining claim property, and standing timber; local telecommunications, utilities,pipelines, and oil and gas producing; and commercial and industrial real property not included inother classes. Assessment ratio is 19.5 percent, scheduled to decline as follows: 19 percent in 2014; 18.5percent in 2015, and 18 percent in 2016.

• Class 2: Agricultural real property, golf courses, and vacant land. Assessment ratio is 16 percent,scheduled to decline to 15 percent in 2016.

• Class 3: Owner-occupied residential property (10 percent).

• Class 4: Leased or rented residential property (10 percent).

• Class 5: Railroads, private car companies, and airline flight property (21 percent).

• Class 6: Noncommercial historic property, foreign trade zones, military reuse, environmentaltechnology, and environmental remediation property (5 percent).

• Class 7: Improvements to commercial historic property (1 percent for up to 10 years).

• Class 8: Improvements to historic residential rental property (1 percent for up to 10 years).

• Class 9: Possessor interests (1 percent for up to 10 years).

Crime RateThe crime rate in Sierra Vista has declined

steadily in recent years. In 2011, the rate was 32.8crimes per 1,000 residents, down from 33.8 in 2010.The 2011 crime rate in Sierra Vista was below stateand national levels, but above the countywide ratedue primarily to lower levels of crime in thecounty’s rural unincorporated areas. The crime ratereflects data reported in the Federal Bureau ofInvestigation’s (FBI) Uniform Crime Report andincludes violent crimes (murder and non-negligentmanslaughter, forcible rape, robbery, andaggravated assault), property crimes (burglary,larceny-theft, and motor vehicle theft) and arson.

SIERRA VISTA TRANSACTION PRIVILEGE(SALES) TAX RATES

COUNTY CITY OFCATEGORY AND STATE SIERRA VISTA TOTAL

Privilege Tax 7.10% 1.75% 8.85%

Use Tax – Utilities 7.10% 1.75% 8.85%

Use Tax 6.60% 1.75% 8.35%

Restaurant & Bar 7.10% 2.60% 9.70%

Hotel/Motel 7.05% 5.50% 12.55%

Utilities/Telecommunications 7.10% 2.00% 9.10%

Jet Fuel (per gal.) $0.03355 $0.02 $0.05355

Rental of Real Property —— 1.00% 1.00%

Construction Contracting 6.10% 2.45% 9.55%

Note: Rates as of January 1, 2013. Source: Arizona Department of Revenueand Cochise College Center for Economic Research.

SIERRA VISTA PROPERTY TAX RATES, 2012-2013 (PER $100 ASSESSED VALUE)

DISTRICT PRIMARY SECONDARY TOTAL

City of Sierra Vista 0.1136 —— 0.1136

Buena Elementary School District 2.6159 —— 2.6159

Buena High School District 1.6217 —— 1.6217

Cochise County General Government*2.6276 —— 2.6276

Library* —— 0.1451 0.1451

Flood Control* —— 0.2597 0.2597

Cochise College* 1.7329 —— 1.7329

Fire District Assistance Tax* —— 0.0906 0.0906

School District Assistance Tax** 0.4717 —— 0.4717

TOTAL 9.1834 0.4954 9.6788

Note: Rates are established the third Monday in August. *Rate applies to allproperty in Cochise County. **Rate applies to all property in Arizona.Source: Cochise County Treasurer and Cochise College Center forEconomic Research.

SIERRA VISTA CRIME RATE(PER 1,000 RESIDENTS)

2007 . . . . . . . . . . . . . . . . . . . . . . . .43.6

2008 . . . . . . . . . . . . . . . . . . . . . . . .36.7

2009 . . . . . . . . . . . . . . . . . . . . . . . .35.9

2010 . . . . . . . . . . . . . . . . . . . . . . . .33.8

2011 . . . . . . . . . . . . . . . . . . . . . . . .32.8

Source: Federal Bureau of Investigation (Uniform CrimeReports), U.S. Census Bureau, Arizona Office ofEmployment and Population Statistics, and CochiseCollege Center for Economic Research.

CRIME RATE (PER 1,000 RESIDENTS), 2011

CRIME RATEVIOLENT PROPERTY TOTAL (PER 1,000

LOCATION POPULATION CRIME CRIME ARSON CRIME RESIDENTS)

United States 311,587,816 1,203,564 9,063,173 N/A 10,266,737 32.9

Arizona 6,438,178 26,311 230,422 N/A 256,733 39.9

Cochise County 130,537 N/A N/A N/A N/A *30.5

Benson 5,077 N/A N/A N/A N/A N/A

Bisbee 5,474 91 167 1 259 47.3

Douglas 17,118 N/A 580 4 N/A N/A

Huachuca City 1,827 4 23 1 28 15.3

Sierra Vista 45,098 145 1,326 9 1,480 32.8

Tombstone 1,358 17 101 0 118 86.9

Willcox 3,692 6 232 5 243 65.8

Unincorporated Areas 50,893 367 797 16 1,180 23.2

N/A = Data not available. *Estimated by the Cochise College Center for Economic Research based on reportingfor all areas except Benson and Douglas. Source: Federal Bureau of Investigation (Uniform Crime Reports), U.S.Census Bureau, Arizona Office of Employment and Population Statistics, and Cochise College Center forEconomic Research.


OverviewSince 1985, the City of Sierra Vista has maintained a close working relationship with, and has made a

significant investment in, the Sierra Vista Economic Development Foundation (SVEDF). City staff worksclosely with SVEDF and other stakeholder agencies on wide ranging projects. Over the past several years, themayor and city council have expressed interest in increasing the city’s role in local economic developmentefforts. In early 2013, the city hired a consultant to facilitate development of a collaborative, community-wideeconomic development vision to help determine the city’s appropriate role in the process. Together with a fullanalysis of strengths, weaknesses, opportunities, and threats (SWOT) of the area’s potential, the analysis willlead to the creation of short and long term strategies designed to enhance city partnerships and investmentin economic development over the next several years. For more information, visit www.SierraVistaAZ.gov.

Sierra Vista Economic Development FoundationThe Sierra Vista Economic Development Foundation (SVEDF) has been incorporated as a nonprofit

501(c)(3) corporation since 1985. Its mission and purpose is to increase the economic strength of Sierra Vistaand to diversify the region's economy through the provision of resources to existing businesses andrecruitment of top-performing industries to the greater Sierra Vista area. SVEDF promotes communitydevelopment through media exposure, to include serving as a spokesperson on economic operations andstrategies at conferences throughout the region, and providing commentary on a variety of economic topicsto various media sources; local business development, including a business enrichment program to helpentrepreneurs deal with obstacles to success; provision of co-space for business startups with onsitecounseling and financial assistance; recruitment of new companies to the Sierra Vista area, to includeassistance in site selection, site certification, deal negotiation, and customized demographic reports; businesssupport and resource referral, including personal counseling sessions on organizational issues, revenuereductions, and expansion plans; and the establishment and maintenance of partnerships with otheragencies, the City of Sierra Vista, Cochise County, and the State of Arizona. For more information, visitwww.svedf.org.

economic development

IHOP Restaurant


Sierra Vista Industrial Development AuthorityThe Sierra Vista Industrial Development Authority (IDA) promotes industry and trade by inducing

manufacturing, industrial, and commercial enterprises to locate to the city. In 1985, the IDA formed theSierra Vista Economic Development Foundation (SVEDF) to promote industrial and commercial growth,and the IDA became the principal nonprofit organization that provides financial assistance and leadership tostimulate development of qualified projects with an emphasis on affordable housing. In 2004, the IDAestablished Sierra Housing Resource Partner, Inc., a 501(c)(3) set up to develop low-income housing. In thecity’s West End, the Crossing Point community, developed in partnership with the Sierra Vista IndustrialDevelopment Authority, is a 57-unit affordable housing development. The Crossing Point community offersmoderately priced two-story, three- and four-bedroom homes with down payment assistance for those whoqualify. For more information on the IDA, call (520) 458-1666 or email [email protected].

Sierra Vista Municipal AirportSierra Vista Municipal Airport, a civilian/military joint-use airport, serves southeastern Arizona and

northern Mexico sharing runways with Fort Huachuca’s Libby Army Airfield. The military owns and operatesland and facilities on the south side of the airport including the control tower, while the city owns 75 acreson the north side including hangars and tie-down sites, which it leases out. Hangar access is available 24-hours a day, seven days a week, through electrically operated security gates. Self-fueling services are available.The airport has three runways: Runway 08-26 is 12,001 feet long by 150 feet wide and is constructed ofreinforced concrete; Runway 12-30 is 5,365 feet long by 100 feet wide, constructed of asphaltic concrete; andRunway 03-21 is 4,300 feet long by 75 feet wide, also constructed of asphaltic concrete. Currently, there is nocommercial air service to the Sierra Vista Municipal Airport. For more information, visitwww.SierraVistaAZ.gov.

West End DevelopmentSierra Vista’s West End (west of Seventh Street to Buffalo Soldier Trail, and north of Golf Links Road to

State Highway 90) has been the focus of redevelopment efforts by the city in recent years due to its potentialto advance small business ownership and entrepreneurship. The area is the oldest community in the city andincludes most of the original area that made up Sierra Vista when it was first incorporated in 1956. City staffhas worked with residents, business owners, Fort Huachuca officials, West End Commissioners, and othercommunity leaders to develop strategies to revitalize the area and promote private investment andredevelopment. The city offers several incentives to encourage redevelopment in the West End, to include anexpedited review process and flexibility regarding issues such as parking requirements, setbacks, and heightlimitations. The city also gives consideration to fee waivers for development in the West End. Commercialprojects that replace existing structures automatically qualify for a development fee waiver.

Quality of LifeA primary focus of the city’s economic development efforts in recent years has been the enhancement of

quality of life factors that help lure new businesses and residents to the area. This includes parks, welldesigned and maintained streets, affordable neighborhoods, cultural and recreational opportunities, diningand shopping opportunities, successful commercial districts, open space, a system of bicycle andwalking/multiuse paths throughout the city, and other amenities. In 2012, the city accepted the donation ofthe King’s Court Tennis Club and Sports Gallery Bar & Grill and has initiated a process to obtain communityinput on potential uses for the facility. Other city facilities developed in recent years to promote quality of lifeinclude Centennial Pavilion, which provides a venue for performances ranging from intimate events to full-scale concerts; Ethel H. Berger Center, which includes an active-adult lounge, activity rooms, dance studio,the Henry F. Hauser Museum, horseshoe pits, kitchen and dining room, and stage; Oscar Yrun CommunityCenter, which offers activity rooms, auditorium, arts and crafts studio, shuffleboard, and tennis courts, inaddition to providing the location of the Sierra Vista Visitor's Center and Sierra Vista Aquatic Center (“TheCove”), which provides beach entry, wave pool, children's lagoon with slide, diving pool, sunning decks, lapand competition lanes, 150-foot tube water slide, party area, snack bar, warm water pool, and a walking path.As of early 2013, the city was planning to open a new youth center.


Our Future Vistas – City Council Strategic Leadership PlanSince 2007, the Sierra Vista City Council has used “Our Future Vistas”—a two-year strategic leadership

plan process. The document provides a vision for the future, supported by focus areas, goals, and objectives.In spring 2013, the city council will develop a new strategic plan to cover the next two fiscal years. The planguides budget investments and staff time on programs, issues, and projects identified as priority items. For adownloadable copy of the current strategic plan, visit www.SierraVistaAZ.gov.

Environmental CodesCurrent city code requires developers to use water saving devices in new construction, including

waterless urinals in commercial buildings and hot water recirculating pumps in new residential construction.City codes also impact landscaping decisions by eliminating turf in new commercial landscapes in favor oflow-water-use plants, and limiting turf in the front yards of new homes to 200 square feet. Codes alsoprohibit water misters in commercial development, and require new car wash facilities to recycle 75 percentof their water and new commercial developments to build on-site detention basins. For more information,visit www.SierraVistaAZ.gov.

Foreign Trade ZoneCochise County has industrial property designated as a foreign-trade zone (FTZ-139). Companies

located in the FTZ can use special procedures that allow delayed or reduced duty payments on foreignmerchandise. Other benefits include no duties or quota charges on re-exports; deferred customs duties andfederal excise tax on imports; in cases where manufacturing results in a finished product that has a lower dutyrate than the rates on foreign inputs (inverted tariff), the finished products may be entered at the duty ratethat applies to its condition as it leaves the zone (subject to public interest considerations); access tostreamlined customs procedures such as weekly entry or direct delivery; and exemption from state/localinventory taxes for foreign and domestic goods held for export. Merchandise in a zone may be assembled,exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged,sampled, stored, tested, displayed, and destroyed. Retail trade is prohibited in the zone. For moreinformation, contact the Sierra Vista Economic Development Foundation at (520) 458-6948 [email protected].

Arizona Quality Jobs Tax CreditThe Arizona Quality Jobs Tax Credit (QJTC) program offers incentives to encourage business investment

and creation of high-quality employment opportunities. Within Cochise County, including all municipalitiesand unincorporated areas, employers creating 5 or more jobs and making capital investment of at least $1million are eligible for up to $9,000 in Arizona income or premium tax credits per new job over a 3-yearperiod with provisions to carry forward unused amounts for up to 5 consecutive taxable years. To qualify, netnew jobs must be full-time permanent positions that pay at least the median county wage ($32,739 for 2012)and the employer must offer to pay at least 65 percent of health insurance costs of the employee. The programis capped at 10,000 jobs claimed each year by all participants statewide, and each taxpayer is limited to creditsfor a maximum of 400 new jobs per year. For more information, visit www.azcommerce.com.

Arizona Competitive Incentives, Programs, and GrantsThe Arizona Competitiveness Package (HB2001) is economic development legislation offering a host of

programs and incentives including more than $200 million in refundable tax credits, reimbursable grants,and property tax reductions; tax-exempt bond financing for specific projects; loan programs to stimulatefinancing to small businesses and manufacturers; the Arizona Innovation Challenge, which awards a total of$1.5 million to the most promising technology ventures that participate in the Challenge (awards may rangefrom $100,000 to $250,000); renewable energy incentives; training programs; and other incentives. For moreinformation, visit www.azcommerce.com.


SouthEastern Arizona Governments Organization (SEAGO)SEAGO is a Council of Governments serving local and tribal governments in the four-county region of

Cochise, Graham, Greenlee, and Santa Cruz counties and is a designated Economic Development District(EDD) by the U.S. Economic Development Administration. The SEAGO EDD program assists distressedareas, planning regions, cities, and counties in economic development planning, policymaking, andimplementation. As an EDD, SEAGO has responsibility for developing the Regional ComprehensiveEconomic Development Strategy (CEDS), a wide-ranging guide to economic development initiativesthroughout the region. The CEDS process, which includes input from member entities, enables SEAGOmembers to apply for federal grant funding. For more information, visit www.seago.org.

Cochise College Small Business Development Center (SBDC)The SBDC sponsors workshops and seminars specifically for small business owners and provides free

one-on-one counseling on small business topics including marketing, financial planning, business planning,computer information systems, human resource management, government procurement, and recordkeeping.The SBDC also makes available a library of business resources including many of the latest small businessbooks, videos, audio, newsletters, and magazines. For more information call (520) 515-5478 or [email protected].


Primary and Secondary EducationSIERRA VISTA UNIFIED SCHOOL DISTRICT

The Sierra Vista Unified School District (SVUSD) consists of one high school, one middle school, andsix elementary schools. The district’s total enrollment as of October 1, 2011 was 5,562, down 5.8 percent fromthe year prior. In 2012, voters approved membership of the district’s Buena High School in the Cochise JointTechnical Education District (JTED). Membership will lead to greater funding for career and technicaleducation (CTE) programs through a local property tax with additional three-to-one state funding. With the2012 approval of Buena High membership, along with simultaneous approval of Bisbee High in that city, allhigh schools in Cochise County are now members of the JTED. Based on 2012 CTE enrollment, Buena HighSchool has the potential to generate more than $740,000 in additional funding for CTE programs throughthe local property tax and state funding. Current plans are to expand marketing, culinary arts, sportsmedicine, automotive technology, and engineering sciences programs and potentially implementconstruction technology, fire science, police science, information technology, heating ventilation and airconditioning, and unmanned aerial systems programs.

The Arizona A-F Letter Grade Accountability System, a program within the Arizona Department ofEducation (ADE), evaluates each Arizona school and assigns a letter grade with respect to the school’s per-formance on Arizona's Instrument to Measure Standards (AIMS) and how much students grow academical-ly each year. Other factors such as dropout rate, graduation rate, and English language learner reclassificationrate are taken into consideration, when applicable. A parallel model to evaluate alternative schools, accom-modation schools, extremely small schools, and K-2 schools takes into account unique characteristics ofthose schools. Ratings follow the traditional academic letter grade system of A for excellent, B for above aver-age, C for average, D for below average, and F for failing (a grade of F is assigned to schools that score a D for3 consecutive years and are placed in school improvement by ADE). For alternative schools, the grade is fur-ther designated with –ALT (e.g., A-ALT, B-ALT, etc.). For the 2011-2012 school year, Carmichael Elementaryand Town & Country Elementary were rated C. All other schools in SVUSD were rated B.

In fiscal year 2011, the student/teacher ratio in SVUSD was 19.2 to 1, which was higher than the statewide

education

Buena school house


average of 18.1 and peer average of 15.1. The average experience for teachers at SVUSD in 2011 was 12.2years, compared to 10.9 statewide and a peer average of 11.1. The average teacher salary in SVUSD in fiscalyear 2011 was $44,507, higher than the peer average of $39,479 but lower than the statewide average of$45,637. The district’s graduation rate in 2010 was 86 percent, considerably higher than the peer average of77 percent and the statewide rate of 78 percent. SVUSD spent an average of $6,864 per student in 2011, lowerthan the statewide average of $7,485 and the peer average of $7,026. From 2007 to 2011, total spending perpupil increased by 10 percent while spending in the classroom declined from 56.9 to 53.6 percent.

For more information on the Sierra Vista Unified School District, visit www.svusd68.org.

FORT HUACHUCA ACCOMMODATION SCHOOLSFort Huachuca Accommodation Schools (FHAS) consists of one middle and two elementary schools

located on Fort Huachuca. FHAS are Arizona public schools that fall under the Arizona Department ofEducation. As such, enrollment is not limited to military personnel or those associated with the fort. Underthe Arizona A-F Letter Grade Accountability System, Colonel Johnston Elementary was rated A, GeneralMyer Elementary was rated B, and Colonel Smith Middle School was rated C for the 2011-2012 school year.For more information on FHAS, visit www.fthuachuca.k12.az.us.

CHARTER SCHOOLSIn addition to SVUSD and FHAS, Sierra Vista also has five charter schools, which had a combined

enrollment of 1,457 students in 2011-2012. In recent years, charter school enrollment has been on the rise,increasing 21.5 percent from 2010 to 2012. For the 2011-2012 school year, Imagine Charter School at SierraVista (imaginesierravista.com), Center for Academic Success #1 and Center for Academic Success #5(www.cas-schools.com), and The Berean Academy (berean-academy.com) were rated C under the Arizona A-F Letter Grade Accountability System. PPEP-TEC Colin L. Powell Learning Center (www.ppeptechs.org), analternative high school, was rated A-ALT.


SIERRA VISTA PRIMARY AND SECONDARY SCHOOL ENROLLMENT

SCHOOL 2009-10 2010-11 2011-12

Sierra Vista Unified School District 6,313 5,903 5,562

Apache Middle School (6-8) 629 -- --

Bella Vista Elementary School (K-6) 394 417 376

Buena High School (9-12) 2,414 2,211 1,968

Carmichael Elementary School (K-6) 378 396 409

Huachuca Mountain Elementary School (K-6) 535 613 569

Joyce Clark Middle School (formerly Sierra Vista Middle School) (7-8) 616 779 751

Pueblo Del Sol Elementary School (K-6) 538 613 633

Town & Country Elementary School (K-6) 414 417 400

Village Meadows Elementary School (K-6) 395 457 456

Fort Huachuca Accommodation District 1,044 1,023 1,015

Colonel Johnston Elementary School (pre-K-2) 397 377 377

Colonel Smith Middle School (6-8) 319 295 317

General Myer Elementary School (3-5) 328 351 321

Charter Schools 1,199 1,392 1,457

The Berean Schools Academy (K-12) 296 416 464

Center for Academic Success #5 (K-5) 244 291 298

Center for Academic Success #1 (9-12) 174 188 128

Imagine Charter School at Sierra Vista (K-8) 413 434 505

PPEP-TEC Colin L. Powell Learning Center (9-12) 72 63 62

Note: Figures reflect enrollment as of October 1 of each school year. Beginning 2010-11, Apache Middle Schoolclosed, Joyce Clark Middle School converted from grades 6-8 to 7-8, and all elementary schools in the SierraVista Unified School District converted from K-5 to K-6. Source: Arizona Department of Education andCochise College Center for Economic Research.

Postsecondary Educational OpportunitiesCOCHISE COLLEGE

Cochise College is a 2-year community college with campuses in Sierra Vista and Douglas and learningcenters in Benson, Willcox, and Fort Huachuca. The college also offers classes in Bisbee and online, as well asin neighboring Santa Cruz County. Cochise College offers two-year degrees in a variety of fields, includingadministration of justice, early childhood care and education, elementary education, secondary education (inseveral teaching fields), economics, journalism and media arts, mathematics, political science, psychology,social work, business administration, computer information systems, allied health, computer science,engineering, physics, pre-nursing, agriculture, automotive technology, avionics technology, buildingconstruction technology, culinary arts, fire science technology, hospitality administration, intelligenceoperations, paramedicine, professional pilot technology, registered nurse, welding technology, and severalother arts and sciences fields. Cochise College also offers certificate programs in several fields, non-creditpersonal enrichment classes, GED, English Language Acquisition, workforce training, and numerous otherlearning opportunities through its Center for Lifelong Learning, Adult Education Center, and Small BusinessDevelopment Center. The college’s Center for Economic Research conducts community outreach activities,tracks trends in the local economy, and publishes local economic research. The college’s athletic programsdraw students nationally and internationally. Cochise College is accredited by the Higher LearningCommission of the North Central Association. To learn more, visit www.cochise.edu.

UNIVERSITY OF ARIZONA (UA) SIERRA VISTAUA Sierra Vista offers upper-division courses for students to complete undergraduate degree programs in

cooperation with Cochise College and other Arizona community colleges. Undergraduate degree programs areoffered in anthropology, commerce, computer science, early childhood education, elementary education,English, government and public service, history, informatics, intelligence studies, Latin American studies, math-ematics, network administration, and psychology. Undergraduate degree programs in human services, supervi-sion, and family studies and human development, and graduate degree programs in educational technology andsecondary education are offered online. UA Sierra Vista is a commuter campus with schedules designed toaccommodate working adults and returning students. For more information, visit www.uas.arizona.edu.

DISTRIBUTION OF PER PUPIL SPENDING

SIERRA VISTA UNIFIED UNITEDSCHOOL DISTRICT PEER ARIZONA STATES

Total $6,864 $7,026 $7,485 $10,591

Classroom Dollars $3,678 $3,783 $4,098 $6,456

Non-classroom Dollars $3,186 $3,243 $3,387 $4,135

Administration $786 $736 $728 $1,147

Plant Operations $937 $917 $927 $1,033

Food Service $299 $351 $375 $404

Transportation $336 $360 $352 $443

Student Support $490 $528 $571 $573

Instruction Support $338 $351 $434 $535

Note: Data for the Sierra Vista Unified School District, peer districts, and Arizona are from 2011; nationalfigures are from 2009. Source: Arizona Office of the Auditor General.


ARIZONA A-F LETTER GRADE ACCOUNTABILITY SYSTEM

SCHOOL 2011-2012 2010-2011

Sierra Vista Unified School District B B

Buena High School (9-12) B B

Joyce Clark Middle School (6-8) B B

Bella Vista Elementary (K-5) B B

Carmichael Elementary (K-5) C C

Huachuca Mountain Elementary (K-5) B B

Pueblo del Sol Elementary (K-5) B B

Town & Country Elementary (K-5) C C

Village Meadows Elementary (K-5) B C

Fort Huachuca Accommodation District B B

Colonel Smith Middle School (6-8) C B

General Myer Elementary School (3-5) B B

Colonel Johnston Elementary School (pre-K-2) A *

Charter Schools

The Berean Academy (K-12) C C

Center for Academic Success #1 (9-12) C D

PPEP-TEC Colin L. Powell Learning Center (9-12) A-ALT *

Imagine Charter School at Sierra Vista (K-8) C C

Center for Academic Success #5 (K-5) C C

*Small schools, K-2 schools, and alternative schools did not receive letter grades in 2011. Source: ArizonaDepartment of Education.

WAYLAND BAPTIST UNIVERSITYWayland Baptist University has campus locations in Sierra Vista and on Fort Huachuca, catering to

working adults to include military, border patrol, and other government employees. Undergraduate degreeprograms are offered in management, business administration, computer information systems, teachereducation, justice administration, human services, Christian ministry, and occupational education. Graduatedegree programs are offered in management, business administration, Christian ministry, and publicadministration. For more information, visit www.wbu.edu.

EMBRY-RIDDLE AERONAUTICAL UNIVERSITYEmbry-Riddle Aeronautical University on Fort Huachuca offers undergraduate degree programs in

aviation business administration, aviation maintenance, professional aeronautics, and technicalmanagement, and graduate degree programs in aeronautical science and business administration in aviation.For more information, visit www.erau.edu.

HORIZON HEALTH CARE INSTITUTE (HHCI)HHCI is licensed by the Arizona State Board for Private Postsecondary Education to operate as a private,

non-accredited vocational school. HHCI is approved by the Arizona State Board of Nursing to conduct anursing assistant training program and the Arizona Department of Health Services to conduct a caregivertraining program. Other training programs include billing and coding for the medical office, clinical medicalassistant, dental assistant, electronic health records-front office specialist, entry-level phlebotomy skillsworkshop, nursing assistant, nursing rehab technician workshop, patient care technician, pharmacytechnician, and phlebotomy technician. For more information, visit www.horizonhealthcareinstitute.com.


Educational AttainmentAccording to the U.S. Census Bureau’s 2009-2011 American Community Survey (ACS), 91.3 percent of

Sierra Vista’s population aged 25 years and older has at least a high school diploma or equivalent. This isabove countywide, statewide, and national levels. Approximately 29.8 percent of Sierra Vista residents hold abachelor's degree or higher, which is also higher than county, state, and national levels. Between Census 2000and the 2009-2011 ACS, the share of Sierra Vista residents aged 25 and older with less than a 9th gradeeducation declined from 3.2 to 3 percent. Over the same period, residents with a 9th to 12th grade educationbut no high school diploma increased from 5.3 to 5.7 percent. High school graduates (or equivalent)decreased from 22.8 to 20.7 percent, while residents with some college but no degree decreased from 32.1 to28.2 percent. The share of residents with an associate degree increased from 10.9 to 12.6 percent of the city’spopulation aged 25 and older, the share with a bachelor’s degree increased from 18.2 to 18.5 percent, and theshare of residents with a graduate or professional degree increased from 7.5 to 11.2 percent.

100%90%80%70%60%50%40%30%20%10%0%

HIGH SCHOOL GRADUATE OR HIGHER

91.3% 85.1% 85.4% 85.6% 29.8% 21.4% 26.2% 28.2%BACHELOR’S DEGREE

OR HIGHER

Sierra Vista Cochise County Arizona United States

Note: Population 25 years and older. Source: U.S. Census Bureau (2009-2011 American Community Survey 3-Year Estimates) and CochiseCollege Center for Economic Research.

EDUCATIONAL ATTAINMENTCOMPARISONS

Less than 9th grade

9th to 12th grade NO

DIPLOMA

High School grador equivalent

Some CollegeNO

DEGREE

Associate Degree

Bachelor's Degree

Graduate orProfessional Degree

3.2%

3.0%

5.3%

5.7%

22.8%20.7%

32.1%28.2%

10.9%

12.6%

18.2%

18.5%

7.5%

11.2%

2000

2009-2011

Note: Population 25 years and older. Source: U.S. Census Bureau(Census 2000 and 2009-2011 American Community Survey 3-YearEstimates) and Cochise College Center for Economic Research.

SIERRA VISTA EDUCATIONALATTAINMENT, 2000-2010

40%

35%

30%

25%

20%

15%

10%

5%

0%

S I E R R A V I S T A E C O N O M I C O U T L O O K • 2 0 1 316

OverviewIn addition to the Sierra Vista Regional Health Center (SVRHC), described in detail below, Sierra Vista

is home to a Veterans Administration Community Based Outpatient Clinic, the Raymond W. Bliss ArmyHealth Center on Fort Huachuca (an Ambulatory Health Center supporting TRICARE eligible beneficiariesoffering primary care, internal medicine, pediatrics, aviation medicine, behavioral health, physical therapy,sports medicine, optometry, immunizations, nutrition care, occupational health, pharmacy, laboratory, andradiology) and numerous private-practice physicians and healthcare providers. The Cochise County HealthDepartment, with a location in Sierra Vista, offers preventative services and resources.

Sierra Vista Regional Health CenterIn early 2013, SVRHC announced its intent to partner with Tennessee-based RegionalCare Hospital

Partners (RCHP). The partnership would lead to a potential new $100 million, 100-bed hospital in SierraVista, funded and constructed by RCHP. A formal agreement on the partnership is anticipated to be completein spring 2013, with groundbreaking on a new hospital by the end of 2013 and opening in three to four years.In addition to the new hospital, the partnership will give SVRHC access to reduced prices for supplies,equipment, and services, along with other benefits of being part of a network of hospitals. RCHP is a systemof seven rural community hospitals in Alabama, Iowa, Texas, Connecticut, Pennsylvania, and Ohio. Thepartnership with SVRHC would expand this to eight.

Currently, SVRHC is an 88-bed, Joint Commission-accredited acute care facility with 70 active, 37courtesy, and nine Allied Health physicians, along with a full-service laboratory. Helicopter services are basedat SVRHC staffed by flight nurses and professional pilots certified in emergency care. Ground transportation,staffed by certified paramedics and emergency medical technicians, is readily available. SVRHC also offersTrauma Telemedicine, which provides a real-time connection to trauma doctors at the University MedicalCenter in Tucson. SVRHC also operates outpatient clinics in Sonoita, Douglas, and Tombstone.

healthcare

Sierra Vista Regional Health Center

S I E R R A V I S T A E C O N O M I C O U T L O O K • 2 0 1 3 17

HOSPITAL MILEAGE CHART

Copper Northern Southeast Sierra VistaQueen Holy Cochise Northwest Arizona Regional St. St. Tucson Tucson University University

Benson Community Cross Community Medical Medical Health Joseph’s Mary’s Medical Heart Medical PhysicianHospital Hospital Hospital Hospital Center Center Center Hospital Hospital Center Hospital Center Hospitals

Benson Hospital 0 52 75 37 67 72 35 45 49 49 58 48 43Copper Queen Community Hospital 52 0 91 86 118 22 27 95 100 99 108 99 94Holy Cross Hospital 75 91 0 110 84 111 64 72 67 73 75 70 65Northern Cochise Community Hospital 37 86 110 0 103 72 71 80 85 84 93 84 79Northwest Medical Center 67 118 84 103 0 137 94 21 16 18 11 15 25Southeast Arizona Medical Center 72 22 111 72 137 0 47 115 120 119 128 118 114Sierra Vista Regional Health Center 35 27 64 71 94 47 0 72 77 77 86 76 71St. Joseph’s Hospital 45 95 72 80 21 115 72 0 10 3 11 6 8St. Mary’s Hospital 49 100 67 85 16 120 77 10 0 9 8 5 10Tucson Medical Center 49 99 73 84 18 119 77 3 9 0 8 4 8Tucson Heart Hospital 58 108 75 93 11 128 86 11 8 8 0 5 10University Medical Center 48 99 70 84 15 118 76 6 5 4 5 0 5University Physician Hospitals 43 94 65 79 25 114 71 8 10 8 10 5 0

Source: Cochise College Center for Economic Research.

OUTPATIENT SURGERY SERVICESOutpatient surgery services include endoscopy, general surgery, gynecological surgery, orthopedics,

otolaryngology, urology, and podiatry. The cardiopulmonary services department provides newborn, pediatric,adolescent, adult, and geriatric services.

DIAGNOSTIC IMAGINGSVRHC’s diagnostic imaging department offers X-ray; multi-slice CT, which includes diagnostics,

biopsies, trauma, vascular services, and QCT bone density tests; magnetic resonance imaging (MRI);PET/CT; nuclear medicine; ultrasound; stereotactic biopsy; DEXA scan; breast MRI; cardiac CTA, cardiacscoring, and full-service mammography.

INFUSION SERVICESInfusion services include blood transfusions; hydration/infusion; injections; central line

maintenance/lab draws; wound care with or without debridement; wound vac dressing changes, andphlebotomies.

CRITICAL CARE SERVICESCritical care services include an eight-bed intensive care unit, 12-bed telemetry (step-down) unit, and

cardiac catheterization laboratory.

MATERNAL CHILD SERVICESThe maternal child unit delivers more than 1,400 babies each year and offers an atmosphere of soft low

lighting and private birthing rooms. There is an on-unit surgical suite to facilitate quick and efficient returnto a private room. The SVRHC nursery is certified by the Arizona Perinatal Trust as a Level II nursery.

MEDICAL/SURGICALThe medical/surgical department is SVRHC’s largest department, offering care before and after surgery,

observation, recuperation during and after illness, disease management, and wound care.


MEDICAL TELEMETRY/PEDIATRICSThe medical telemetry/pediatrics department offers care before and after surgery, observation,

recuperation during and after illness, disease management, and wound care. The medical telemetry unit caresfor patients who require cardiac monitoring for electrolyte imbalance, and patients who requirechemotherapy, COPD, CHF and GI bleeds. For pediatric patients, the department offers oxygen saturationmonitoring in addition to basic services.

REHABILITATIONThe rehabilitation services department includes licensed and certified physical, occupational, and speech

therapists, assistants, and support professionals who provide regional services to patients of all ages andhealth conditions and treat the consequences of disease or injury by addressing impairments, functionallimitations, and disabilities. The department treats patients with orthopedic conditions, neurologicconditions, acute and general medical conditions, wounds, diabetes, connective tissue conditions, chronicpain, cardiopulmonary/circulatory conditions, amputations, lymphedema, athletic/sports injuries, industrialinjuries, hand/wrist/elbow injuries, speech/language conditions, cognitive disorders, and voice disorders.Specialty programs include certified manual therapy, aquatic therapy, wound management, pediatricintervention, hand therapy, functional capacity evaluations, work conditioning/industrial rehabilitation,preoperative teaching classes (TKA & THA), pre-feeding skills, tongue thrust correction, andvideofluoroscopy swallow evaluation. SVRHC has two outpatient rehabilitation sites in Sierra Vista.

For more information, visit www.svrhc.org.


POPULATION

SIERRA VISTA COCHISE COUNTY ARIZONAPOPULATION GROWTH POPULATION GROWTH POPULATION GROWTH

1990 32,983 —— 97,624 —— 3,665,228 ——2000 37,775 14.5% 117,755 20.6% 5,130,632 40.0%2010 43,888 16.2% 131,346 11.5% 6,392,017 24.6%2011 45,098 2.8% 130,537 -0.6% 6,438,178 0.7%2012 45,794 1.5% 130,752 0.2% 6,498,569 0.9%

Note: Growth rates shown for 2000 and 2010 reflect preceding 10-year period; rates for 2011 forward areannual. Source: U.S. Census Bureau, Arizona Office of Employment and Population Statistics, and CochiseCollege Center for Economic Research.

Population Estimates and ProjectionsThe population of Sierra Vista as of July 2012 was 45,794, up 1.5 percent from 2011. If recent trends

continue, the city’s population will reach 48,223 in 2017—for average growth of 1.1 percent annually. Becausethe city is the economic hub of Cochise County, its daytime population is much higher. Sierra Vista accountsfor 35 percent of the countywide population but about 70 percent of its retail sales. In 2010, according to theArizona Department of Transportation, 31,500 vehicles per day traveled through the heart of Sierra Vista’scommercial district. This is projected to increase to 34,000 in 2030. The city also serves a large number ofshoppers from Mexico. Based on the share of countywide retail sales, and border-crossing data, Sierra Vista’sretail market serves an estimated population of more than 110,000.

Sierra Vista’s population includes Fort Huachuca as a result of the city’s annexation of the fort in 1971.The resident population of Fort Huachuca (those residing on post) was 7,084 as of January 2012, whichincluded 1,079 military personnel and 2,805 military family members residing in on-post family housing,along with approximately 3,200 unmarried or unaccompanied military personnel residing in troop billets,including students assigned temporarily to the fort for training. Many military personnel and their familiesalso reside in Sierra Vista and surrounding communities.

population and demographics

Dawn to Dust mountain biking.Photo: City of Sierra Vista


50%45%40%35%30%25%20%15%10%5%0%

Sierra Vista Cochise County Arizona

19.4% 32.4% 29.6%

United States

16.3%

Note: The U.S. Census Bureau considers Hispanic an ethnicity, not arace; thus, there is no separate racial classification for Hispanic.According to the Census Bureau, people identifying themselves asHispanic may be of any race. Source: U.S. Census Bureau (Census 2010)and Cochise College Center for Economic Research.

HISPANIC/LATINO POPULATION

American Indian orAlaska Native 1.1%

Native Hawaiian or other Pacific Islander 0.6%

Note: Discrepancies are due to rounding. The U.S. Census Bureauconsiders Hispanic an ethnicity, not a race; thus, there is no separateracial classification for Hispanic. According to the Census Bureau, peopleidentifying themselves as Hispanic may be of any race. Source: U.S.Census Bureau, Census 2010; and Cochise College Center for EconomicResearch.

Asian 4.1%

SIERRA VISTA RACIAL COMPOSITION

White74.5%

Black/AfricanAmerican 9.0%

Other 10.7%

Age GroupsAs of Census 2010, the median age of the city’s population is 33.1 years, considerably below 39.7 years

for all of Cochise County and the statewide median age of 35.9 years. The generally younger population islargely due to military personnel stationed at Fort Huachuca, who tend to be between the ages of 18 and 40.As of 2010, 77 percent of Sierra Vista’s population is aged 18 years and older (up from 74.2 percent in 2000);17.5 percent is aged 62 and older (up from 14.6 percent in 2000); and 14.6 percent is 65 and older (up from12.1 percent in 2000). Although the population is generally younger than countywide and statewide, thefastest-growing age groups in the city between 2000 and 2010 were all in the 60 years and older categories.The fastest-growing age group was 85 years and older, which grew from 0.9 to 1.7 percent of the population,followed by the 75 to 84 years age group (4.1 to 4.9 percent), 60 to 64 (4.2 to 4.8 percent) and 65 to 74 (7.1to 8 percent). Contributors to growth in the upper age groups include the area’s increasing popularity as aretirement destination, longer life spans, and the aging baby-boomer generation. All age groups 24 years andyounger decreased as a share of the population, as did those 35 to 44 years old, between 2000 and 2010.

Race and EthnicityAs of Census 2010, 19.4 percent of Sierra Vista’s population is Hispanic or Latino (of any race), up from

15.8 percent in 2000. Sierra Vista’s Hispanic/Latino population is considerably below that of the county andstate (32.4 and 29.6 percent, respectively). Nationally, Hispanics/Latinos account for 16.3 percent of thepopulation. Sierra Vista’s population as of 2010 is 74.5 percent White, 9 percent Black or African American,1.1 percent American Indian and Alaska Native, 4.1 percent Asian, 0.6 percent Native Hawaiian and otherPacific Islander, and 10.7 percent other (including two or more races combined). (Note: The U.S. CensusBureau considers Hispanic an ethnicity, not a race; therefore, there is no separate racial classification forHispanics. According to the Census Bureau, people identifying themselves as Hispanic may be of any race.)

POPULATION PROJECTIONS

YEAR SIERRA VISTA % GROWTH COCHISE COUNTY % GROWTH2013 46,098 0.7% 131,688 0.7%2014 46,401 0.7% 132,769 0.8%2015 47,008 1.3% 134,166 1.1%2016 47,615 1.3% 135,764 1.2%2017 48,223 1.3% 137,452 1.2%

Source: County projections by Arizona Office of Employment and Population Statistics; city projections byCochise College Center for Economic Research.


IncomeThe median household income in Sierra Vista

from 2009 to 2011 was $60,055 (in 2011 dollars).Median family income is $67,260 and per capitaincome is $27,448. Each measure of income in SierraVista is considerably higher than county, statewide,and national levels.

Military VeteransAs of the 2009-2011 American Community Survey, 24.3 percent of Sierra Vista’s population ages 18 and

older are civilian veterans of the military, more than two-and-a-half times the national level. This is largelydue to the number of Department of the Army civilian positions at Fort Huachuca, as well as defensecontracting personnel, many of whom are former members of the military. Also, the large number of retireesin the area has increased the number of civilian veterans, since many retirees once served in the armed forcesthough perhaps not in connection with Fort Huachuca.

Household CharacteristicsAs of Census 2010, the average household size in Sierra Vista is 2.39 persons, down from 2.48 in 2000.

The declining household size is likely due to the growing population of those aged 55 and older—emptynesters who tend to have smaller household sizes. As of 2010, 65.3 percent of Sierra Vista households arefamilies, down from 70.4 percent in 2000. A total of 32.3 percent of households have children under 18 yearsold (down from 37.3 percent) and 26.4 percent have seniors 65 and older (up from 22.1 percent). A total of6.7 percent of Sierra Vista households are headed by single mothers, slightly higher than 6.4 percentcountywide but below 7.1 percent statewide. As of the 2009-2011 American Community Survey, 12.8 percentof Sierra Vista’s population had relocated to the city within the previous year from outside Cochise County.The high relocation rate, which is nearly two-and-a-half times the national rate, is attributable to militarypersonnel transferring to and from Fort Huachuca.

Note: Discrepancies are due to rounding. Source: U.S. Census Bureau,Census 2010; and Cochise College Center for Economic Research.

SIERRA VISTA AGE GROUPS

Under 5 - 7.5%85 and over - 1.7%

10-145.6%

5 - 96.4%

15-197.3%

20-248.7%

25-3416.9%

35-4411.9%

45-5411.3%

55-594.9%

60-644.8%

65-748.0%

75-844.9%

SIERRA VISTA CHANGES IN AGE GROUP DISTRIBUTION

2000 2010Under 5 7.7% 7.5%5 to 9 7.1% 6.4%10 to 14 6.9% 5.6%15 to 19 8.2% 7.3%20 to 24 9.0% 8.7%25 to 34 15.4% 16.9%35 to 44 13.8% 11.9%45 to 54 11.0% 11.3%55 to 59 4.7% 4.9%60 to 64 4.2% 4.8%65 to 74 7.1% 8.0%75 to 84 4.1% 4.9%85 and over 0.9% 1.7%

Source: U.S. Census Bureau (Census 2000 and Census 2010) and CochiseCollege Center for Economic Research.

MEDIAN HOUSEHOLDINCOME

MEDIAN FAMILYINCOME

PER CAPITAINCOME

$60,0

55

$45,1

52

$48,5

18

$51,4

84

$67,2

60

$53,8

72

$57,4

77

$62,7

35

$27,4

48

$22,8

15

$24,5

41

$27,1

58

Sierra Vista Cochise County Arizona United States

INCOME COMPARISONS, 2009-2011

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

Note: All figures expressed in 2011 dollars. Source: U.S. Census Bureau,2009-2011 American Community Survey 3-Year Estimates and CochiseCollege Center for Economic Research.

Arizona Department of Economic SecurityThe Arizona Department of Economic Security (DES) offers free employment and training services to

employers and individuals. DES helps job seekers find employment and offers customized services toemployers including special services for those with a large number of vacancies or unusual needs.Employment specialists screen and refer applicants, while employers make final selection. Employmentspecialists can also write job orders and descriptions, provide assistance with mass recruitment, and conducton-site visits. DES also provides career guidance, employment skills workshops, and referrals to othertraining. For more information, visit www.azdes.gov.

Southeast Arizona Workforce ConnectionSoutheast Arizona Workforce Connection (SAWC), formerly Cochise County Workforce Development,

is a 501(c)(3) federally funded private, nonprofit corporation offering one-stop services for businesses, jobseekers, veterans, soldiers in transition, military spouses, and youth. For businesses, SAWC offersoutplacement services; training and retraining; temporary satellite office space for business access tocomputers, printer, copier, phone, fax, and internet; and assistance to business closure. For job seekers, SAWCoffers career development information, job-search resources, and training programs. For more information,visit seazworkforce.org.

Employment, Unemployment, Labor Force, and Job GrowthAccording to estimates by the Arizona Office of Employment and Population Statistics (EPS), Sierra

Vista saw a net loss of 237 jobs in 2012 for job growth of -1.3 percent. Sierra Vista’s annual unemploymentrate in 2012 was 7.6 percent, which was below the countywide rate of 7.9 percent, the statewide rate of 8.3percent, and the national rate of 8.1 percent. The city’s unemployment rate in 2012 was down from 8 percentin 2011. In December 2012, Sierra Vista’s seasonally adjusted monthly unemployment rate was 7.4 percent.

employment

The second largest employer in Sierra Vista in 2012 was General Dynamics Information Technology, which employed 855 FTE employees


According to EPS estimates, the 2012 civilian labor force in Sierra Vista consisted of 20,075 potentialworkers, of whom 18,559 were employed. The civilian labor force consists of those persons 16 years and olderresiding in the city who either are employed or are actively seeking work, and excludes active duty militarypersonnel. The city also draws from the labor forces of surrounding communities. Countywide, the 2012civilian labor force, according to EPS estimates, consisted of 60,049 actual or potential workers, of whom55,286 were employed.

Occupations and Classes of WorkersAccording to the U.S. Census Bureau’s 2009-2011 American Community Survey, 41.6 percent of workers

residing in Sierra Vista are employed in management, business, science, and arts occupations, 23.9 percentare employed in sales and office occupations, and 22.3 percent are employed in service occupations. Naturalresources, construction, and maintenance occupations employ 8.2 percent, while production, transportation,and material moving occupations employ 3.9 percent. Of Sierra Vista workers, 65.9 percent are private wageand salary and 28.5 percent are government workers. Self-employed workers in unincorporated businessesaccount for 5.7 percent of Sierra Vista workers.

SIERRA VISTA LABOR MARKET DATA

CIVILIAN JOBLABOR EMPLOY- UNEMPLOY- JOB GROWTHFORCE MENT MENT GAINS RATE

2008 18,902 18,259 643 692 3.9%

2009 19,625 18,681 944 422 2.3%

2010 19,521 18,474 1,047 -207 -1.1%

2011 20,423 18,796 1,627 322 1.7%

2012 20,075 18,559 1,516 -237 -1.3%

Source: Arizona Office of Employment and Population Statistics andCochise College Center for Economic Research.

UNEMPLOYMENT RATE

COCHISE UNITEDSIERRA VISTA COUNTY ARIZONA STATES

2008 3.4% 5.7% 6.0% 5.8%

2009 4.8% 7.9% 9.9% 9.3%

2010 5.4% 8.8% 10.5% 9.6%

2011 8.0% 8.8% 9.5% 8.9%

2012 7.6% 7.9% 8.3% 8.1%

Source: U.S. Bureau of Labor Statistics, Arizona Office of Employmentand Population Statistics, and Cochise College Center for EconomicResearch.

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

2008 2009 2010 2011 2012

United States

Cochise CountyArizona

Source: U.S. Bureau of Labor Statistics,Arizona Office of Employment and PopulationStatistics, and Cochise College Center forEconomic Research.X

Sierra Vista◆

X

XX

XX

UNEMPLOYMENT RATE

◆

◆◆

◆◆

SIERRA VISTA CLASSES OF WORKERS

Source: U.S. Census Bureau (2009-2011 American Community Survey 3-Year Estimates) and Cochise College Center for Economic Research.

INDUSTRIES IN SIERRA VISTA(BY SHARE OF WORKFORCE)

Note: Includes only industries accounting for at least 5 percent of theworkforce; industries accounting for less than 5 percent are grouped inthe category “other.” Source: U.S. Census Bureau (2009-2011 AmericanCommunity Survey 3-Year Estimates) and Cochise College Center forEconomic Research.

Source: U.S. Census Bureau (2009-2011 American Community Survey 3-Year Estimates) and Cochise College Center for Economic Research.

SIERRA VISTA OCCUPATIONS

Education Services,Health Care, &

Social Assistance

Arts, Entertainment, Recreation, Accommodation, & Food Svc

Public Admin

Other Prof, Scientific, Mgmt,Admin, & Waste Mgmt

Retail Trade

Production, Transportation,and Material Moving

Natural Resources,Construction, and Maintenance

Management,Business, Science,

and Arts

Service

Sales and Office 41.6%

3.9%

23.9%

8.2%

22.3%

Self Employed Unpaid Family Workers 0.2%

Government

28.5%

5.7%

Private Wageand Salary

65.9%

21.8%

18.7%19.3%

18.1%

9.9%12.2%


Major EmployersFort Huachuca is Sierra Vista and Cochise County’s top employer, according to the Cochise College

Center for Economic Research’s (CER’s) annual Top 75 Employer Survey. Fort Huachuca has been the topemployer in Sierra Vista and Cochise County every year since the CER began conducting the survey in 1999.

The fort employed 9,369 fulltime equivalent (FTE) employees in 2012, which includes active dutymilitary personnel and Department of the Army civilian employees. An FTE employee is equal to one fulltimeor two part-time employees. The fort also has a large indirect employment impact on Cochise County.According to a 2008 study conducted by The Maguire Company in collaboration with ESI, Fort Huachucagenerates and supports 26,921 FTE jobs in Cochise County, which includes the fort’s direct employees, as wellas those employed due to government contracts and spending by the fort and its employees. Nearly 83percent of the indirect and induced employment generated by Fort Huachuca occurs in the county’s retailtrade and services industries, according to the study. The second largest employer in Sierra Vista in 2012 wasGeneral Dynamics Information Technology, which employed 855 FTE employees, followed by Sierra VistaUnified School District (685), Sierra Vista Regional Health Center (611), and ManTech InternationalCorporation (560). The list includes only those employers that responded to the survey. In some cases,corporate or organizational policies prohibit releasing information regarding the number of workers.

SIERRA VISTA BUSINESS ESTABLISHMENTS BY EMPLOYMENT-SIZE CLASS, 2010

INDUSTRY TOTAL 1-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999

Accommodation and food services 106 28 18 19 31 10 0 0 0

Admin, support, waste mgmt, remediation serv. 67 42 11 5 5 0 3 1 0

Arts, entertainment, and recreation 12 5 4 1 2 0 0 0 0

Construction 89 44 18 12 11 4 0 0 0

Educational services 14 3 2 3 6 0 0 0 0

Finance and insurance 63 43 12 6 2 0 0 0 0

Health care and social assistance 176 61 59 36 13 3 3 0 1

Industries not classified 1 1 0 0 0 0 0 0 0

Information 17 7 3 3 3 1 0 0 0

Management of companies and enterprises 4 0 2 1 1 0 0 0 0

Manufacturing 18 12 1 4 1 0 0 0 0

Mining, quarrying, and oil and gas extraction 1 0 1 0 0 0 0 0 0

Other services (except public administration) 109 65 24 14 6 0 0 0 0

Professional, scientific, and technical services 124 63 23 7 18 5 4 4 0

Real estate and rental and leasing 63 45 12 3 2 1 0 0 0

Retail trade 173 57 63 30 11 5 5 2 0

Transportation and warehousing 26 15 4 4 2 1 0 0 0

Utilities 5 2 0 0 1 2 0 0 0

Wholesale trade 23 14 6 2 1 0 0 0 0

TOTAL 1,091 507 263 150 116 32 15 7 1

Note: Includes ZIP codes 85635, 85636, and 85650. Source: U.S. Census Bureau and the Cochise College Center for Economic Research.

Number o f es tab l i shments by emp loyment -s i ze c lass

IndustriesThe industry grouping employing the largest number of Sierra Vista workers is educational services and

health care, and social assistance at 19.3 percent, as of the 2009-2011 American Community Survey. This isfollowed by public administration (18.7 percent), professional, scientific, management, administrative, andwaste management services (18.1 percent), arts, entertainment, recreation, accommodation, and foodservices (12.2 percent), and retail trade (9.9 percent). All other industries each employ fewer than 5 percentof Sierra Vista workers.


SIERRA VISTA AREA EMPLOYERS, EMPLOYEES, AND PAYROLL

2006 2007 2008 2009 2010No. of Business Establishments 1,095 1,136 1,127 1,089 1,091

Number of Employees 15,562 15,989 15,925 15,068 15,655

Annual Payroll $441,190,000 $508,585,000 $493,543,000 $492,851,000 $528,772,000

Annual Payroll Per Employee $28,350 $31,808 $30,992 $32,708 $33,777

Annual Payroll Per Employee Growth 9.0% 12.2% -2.6% 5.5% 3.3%

Note: Includes ZIP codes 85635, 85636, and 85650. Does not include government sector or non-employerfirms. Source: U.S. Census Bureau and the Cochise College Center for Economic Research.

SIERRA VISTA’S TOP 25 EMPLOYERS, 2012

NUMBER OF FULLTIMEEQUIVALENT (FTE)

RANK EMPLOYER EMPLOYEES*

1 Fort Huachuca 9,369

2 General Dynamics Information Technology (GDIT) 855

3 Sierra Vista Unified School District #68 685

4 Sierra Vista Regional Health Center 611

5 ManTech International Corporation 560

6 Aegis Communications Group, Inc. 531

7 Northrop Grumman Corporation 460

8 City of Sierra Vista 380

9 Raytheon Technical Services Company 315

10 Science Applications International Corp. (SAIC) 300

11 TASC, Inc. 293

12 Wal-Mart 290

13 Cochise College 276

14 NCI Information Systems Inc. 269

15 McDonald’s 191

16 Cochise County 154

17 Lawley Automotive Group 152

18 Engility (formerly L3 C2S2) 151

19 Cochise Private Industry Council 139

19 Life Care Center of Sierra Vista 139

21 Fort Huachuca Accommodation School District 135

22 Sulphur Springs Valley Electric Cooperative 105

23 All Star Technical Services 103

24 Lowe’s 99

25 AIRES, LLC 85

*A fulltime equivalent (FTE) employee equals one fulltime employee ortwo part-time employees. For employers with multiple site locations, thenumber of FTE employees reflects only those employees reporting towork in Sierra Vista. Note: This list includes only those employers whoresponded to the CER’s annual top employer survey. Source: CochiseCollege Center for Economic Research.

Most private-sector employers in Sierra Vista are small businesses. According to the U.S. Census Bureau,more than 70 percent of business establishments in Sierra Vista employed fewer than 10 workers as of 2010.More than 46 percent employed fewer than 5 workers each. In 2010, the number of employer businessestablishments in Sierra Vista increased from 1,089 to 1,091 according to the Census Bureau (this includesonly private sector firms with employees). The number of private sector employees increased 3.9 percent to15,655. Total annual payroll of businesses located in Sierra Vista increased from $492.9 to $528.8 million. Ona per-employee basis, private-sector payrolls grew by 3.3 percent in 2010.


WagesIn 2011, the average wage per hour in Sierra Vista was $25.10 ($52,219 annually), considerably higher

than countywide, statewide, and nationally. At the county level, the average wage increased 3.9 percent in2011, compared to statewide growth of 3.1 percent. Wage growth in Cochise County was the fourth highestof Arizona’s 15 counties in 2011, behind La Paz, Gila, and Pinal counties. In recent years, the gap betweenwages in Cochise County and statewide has narrowed considerably and has nearly been eliminated. In 2004,Cochise County wages were 8.9 percent below the statewide average. This narrowed to 0.6 percent in 2011.

Cochise County EmploymentIn 2012, Cochise County lost 50 nonfarm jobs for job growth of -0.1 percent. Industries that saw positive

job growth were construction, manufacturing, educational and health services, leisure and hospitality, otherservices, and trade, transportation, and utilities. The number of jobs in financial activities and theinformation industry stabilized at 2011 levels in 2012. Professional and business services lost jobs in 2012.Federal, state, and local government jobs in Cochise County stabilized at 2011 levels in 2012.

OutlookThe largest threat to labor market improvement in Sierra Vista and Cochise County comes from defense

budget cuts that are the natural upshot of winding down two wars. While the rest of the state and nationsuffered through the severe effects of the Great Recession, Cochise County was largely buffered from theworst of it due to increased defense spending on the fort and its missions. Those increases were largely tiedto the wars in Iraq and Afghanistan. The local economy has already taken a hit from a decline in defensespending. Changes in travel policy for military personnel on temporary duty to Fort Huachuca now requiremany to be housed on post instead of in the local economy. Also, defense budget cuts have slowed temporaryduty travel to the fort overall for conferences and other official business. This has impacted the localhospitality industries that cater to those on temporary duty. Aside from declines in temporary duty to thefort, other changes are having, and will continue to have, an impact. Many defense contracts have not beenrenewed and those jobs are now performed by government civil servants who tend to be paid less. The resultis an overall decline in disposable income in the area, which impacts retail and other industries. Also, thetrend has been to replace contractor positions with fewer civil servants resulting in an overall decline inemployment. With a national debt exceeding $16 trillion and an annual budget deficit still close to $1 trillion,budget cuts will be made. As the national economy improves, more cuts will be politically palatable toCongress and the White House. With the ending of two wars, defense spending will be hit especially hard.Fort Huachuca is not likely to be hit as hard as other installations due to its critical missions of unmannedaerial systems, intelligence, communications, and combatting terrorism; however, considerable cuts shouldbe expected.

On the positive side, Sierra Vista Regional Health Center recently announced its intent to partner withTennessee-based RegionalCare Hospital Partners (RCHP), which would potentially lead to a new $100

Sierra Vista Cochise County Arizona United States Sierra Vista Cochise County Arizona United StatesSource: U.S. figures are reported by the U.S. Department of Labor. Stateand county figures are reported by the Arizona Office of Employmentand Population Statistics. City figures are estimated by the CochiseCollege Center for Economic Research using a census ratio model.

HOURLY WAGE COMPARISONS, 2011

$30.00

$25.00

$20.00

$15.00

$10.00

$ 5.00

$ 0.00$25.10 $20.88 $21.00 $21.74 $19.29 $16.05 $16.40 $16.57

AVERAGE HOURLY WAGE MEDIAN HOURLY WAGE

Source: U.S. figures are reported by the U.S. Department of Labor. Stateand county figures are reported by the Arizona Office of Employmentand Population Statistics. City figures are estimated by the CochiseCollege Center for Economic Research using a census ratio model.

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$ 0.00$52,219 $43,441 $43,688 $45,230 $40,134 $33,388 $34,105 $34,466

AVERAGE ANNUAL WAGE MEDIAN ANNUAL WAGE

ANNUAL WAGE COMPARISONS, 2011


million, 100-bed hospital in Sierra Vista, funded and constructed by RCHP. A formal agreement on thepartnership is anticipated to be complete in spring 2013, with groundbreaking on a new hospital by the endof 2013 and construction continuing for three to four years. Healthcare is a growing industry and longer lifespans, an aging baby boomer population, and advances in healthcare technology will continue that trend. Asthe national economy continues to recover, and housing markets in other areas of the nation improve, theSierra Vista area is likely to see a resumption of the influx of retirees to the area, which will ensure a sustaineddemand for healthcare. Moreover, updated healthcare facilities have the potential to lure more businesses andresidents to the area, providing a boon to economic development efforts. The building of a new hospital, ifall goes according to plan, will give a boost to the construction industry and create jobs. The ripple effectswill help other industries in the area, as well.

A NOTE ON EMPLOYMENT DATAEmployment data are widely regarded as one of the most importanteconomic indicators; however, they are subject to sizable revisions. Forthe most up-to-date employment data for the local economy, visit theCER’s website at www.cochise.edu/cer.

COCHISE COUNTY NON-FARM PAYROLL EMPLOYMENT

2012 2011 CHANGE % CHANGE

Total Non-farm 36,925 36,975 -50 -0.1%

Total Private 24,125 24,125 0 0.0%

Goods Producing 2,000 1,925 75 3.9%

Construction* 1,475 1,425 50 3.5%

Manufacturing 550 525 25 4.8%

Service-Providing 34,925 35,025 -100 -0.3%

Private Service-Providing 22,125 22,200 -75 -0.3%

Trade, Transportation, and Utilities 6,325 6,250 75 1.2%

Information 650 650 0 0.0%

Financial Activities 925 925 0 0.0%

Professional and Business Services 5,050 5,250 -200 -3.8%

Educational and Health Services 4,200 4,175 25 0.6%

Leisure and Hospitality 4,050 4,000 50 1.3%

Other Services 950 925 25 2.7%

Government 12,800 12,850 -50 -0.4%

Federal Government 5,900 5,900 0 0.0%

State and Local Government 6,925 6,925 0 0.0%*Includes mining. Note: Numbers are rounded to the nearest 25. Discrepancies are due to rounding. Source:Arizona Office of Employment and Population Statistics and Cochise College Center for Economic Research.


Sierra Vista Area Chamber of CommerceWith a membership of more than 600, the Sierra Vista Area Chamber is the largest business organization

in Cochise County. Its mission is to promote business and provide leadership for the improvement of thecommunity. The chamber’s goal is to support the local business community and to partner with other areaagencies to help create a strong local economy, in particular the long term viability of Fort Huachuca. To thisend, the chamber offers a wide variety of resources and marketing tools to help local businesses grow. Its mainfocus is on business retention and providing opportunities for area business owners and managers to networkand promote their goods and services. The non-profit organization, which is a self-funded 501(c)(6), is alsoactive in the legislative arena. It acts as a voice on behalf of the business community and works to keep itsmembers informed on local, state, and national issues. For more information, visit sierravistachamber.org.

Population Served by Sierra Vista’s Retail Market Although the population of the incorporated limits of Sierra Vista was 45,794 in 2012, the city’s retail

market serves a population nearly two-and-a-half times that size. Sierra Vista accounts for 35 percent of thepopulation of Cochise County, yet it accounts for two-thirds of its retail sales making it the economic hub ofthe county. In 2010, according to the Arizona Department of Transportation, 31,500 vehicles per day traveledalong State Route 92 between East Foothills Drive and Snyder Road, through the heart of Sierra Vista’scommercial district. This is projected to increase to 34,000 by 2030. The city also serves a large number ofshoppers from Mexico (for more on this, see the Mexico section of this publication). Based on the share ofcountywide retail sales, and border-crossing data, the CER estimates Sierra Vista’s retail market currentlyserves a population of more than 110,000.

retail trade and commerce

Chili's Restaurant


Taxable SalesIn 2012, the City of Sierra Vista collected $16.6 million in sales tax revenue, down 1.8 percent from the

previous year. The largest sales tax revenue generator was retail trade, which accounted for 52.5 percent of thetotal. This was followed by restaurant and bar (10.8 percent) and communications and utilities (9.9 percent).The construction industry generated the most new sales tax dollars in 2012, increasing by 12.1 percent andbringing in nearly $118,000 in additional tax revenue. Seven of 13 industries brought in more tax revenue in2012 than the previous year.

SIERRA VISTA SALES TAX REVENUE BYINDUSTRY GROUP, 2012

SHARE OF INDUSTRY SALES TAX TOTALSALESGROUP REVENUE TAX REVENUERetail Trade $8,695,224 52.5%Restaurant & Bar $1,791,836 10.8%Communications & Utilities $1,632,235 9.9%Real Estate, Rental & Leasing $1,284,461 7.8%Construction $1,089,537 6.6%Accommodation $999,941 6.0%Services $484,159 2.9%Manufacturing $253,705 1.5%Other $157,257 0.9%Wholesale Trade $143,679 0.9%Finance & Insurance $9,875 0.1%Transporting & Warehousing $9,390 0.1%Arts & Entertainment $7,926 0.0%TOTAL $16,559,215 Source: Arizona Department of Revenue and Cochise College Center forEconomic Research.

AVERAGE ANNUAL DAILY TRAFFIC COUNT, SIERRA VISTA AREA

LOCATION 2006 2007 2008 2009 2010

Ft Huachuca (N Gate) to Ft Huachuca (E Gate) 17,400 18,500 18,500 19,000 19,000

Fort Huachuca (East Gate) to 7th St 15,000 16,000 16,500 13,000* 20,500

7th Street to Coronado Dr/San Xavier Rd 17,200 16,000 16,500 18,500 19,500

Coronado/San Xavier to Charleston/MLK Pkwy 17,700 17,500 18,000 16,500 17,000

Charleston Rd/MLK Pkwy to SR 92/Fry Blvd 15,200 14,500 14,500 25,000 24,000

SR 92/Fry to Giulio Cesare/Avenida Del Sol 17,000 17,500 18,000 19,000 19,000

Giulio Cesare/Avenida Del Sol to Moson Rd 8,400 8,600 8,700 9,900 9,800

Moson Rd to SR 80 3,500 4,000 3,600 4,000 4,100

SR 90/Fry Blvd to East Foothills Dr 27,800 29,000 29,000 30,000 30,000

East Foothills Dr to Snyder Rd 26,600 25,000 25,500 31,000 31,500

Snyder Blvd to Avenida Cochise 24,700 26,000 26,500 27,000 27,000

Avenida Cochise to Buffalo Soldier Trail 20,700 21,500 21,500 22,000 22,000

Buffalo Soldier to Glenn Ave/Kachina Trail 22,500 25,500 26,000 22,500 22,500

Glenn/Kachina to Ramsey Canyon/Ramsey Rd 19,900 20,500 21,000 19,000 19,000

Ramsey Canyon/Rd to Hereford Rd - Nicksville 11,800 11,500 10,500 10,500 10,500

*Decline attributable to construction at Fort Huachuca’s East Gate. Note: Figures are rounded to nearesthundred. Source: Arizona Department of Transportation and Cochise College Center for Economic Research.


Retail SalesIn the first 11 months of 2012, retail sales in Sierra Vista were down by 1.8 percent in real (inflation-

adjusted) terms, compared to the same period the year prior. This was the fifth consecutive year of decline.For most of 2012, Sierra Vista’s monthly retail sales alternated between positive and negative growthcompared to the same months the year prior, with sales down in 4 of 7 months from May through November.Sierra Vista’s retail sales in the first 11 months of 2012 accounted for 64.9 percent of the countywide total,down from 67.3 percent in the same period of 2011. According to the U.S. Census Bureau, as of 2010 therewere 173 employer business establishments in Sierra Vista whose primary business was retail trade, downfrom 180 the year prior.

SIERRA VISTA SHARE OF COUNTYWIDE SALES

CATEGORY 2008 2009 2010 2011 2012*

Retail 66.2% 68.2% 69.0% 67.1% 64.9%

Restaurant & Bar 51.4% 52.3% 53.9% 55.5% 52.4%

Accommodation 50.7% 54.6% 55.9% 57.7% 51.4%

*January through November only. Source: Arizona Department of Revenueand Cochise College Center for Economic Research.


SIERRA VISTA RETAIL SALES

INFLATION-ADJUSTED

YEAR SALES % CHANGE GROWTH

2007 $528,011,943 5.4% 2.6%

2008 $513,395,543 -2.8% -6.6%

2009 $504,423,943 -1.7% -1.4%

2010 $507,068,457 0.5% -1.1%

2011 $495,431,943 -2.3% -5.5%

2012* $445,668,343 0.3% -1.8%

*January through November only; percent change and inflation-adjustedgrowth based on same period a year prior. Note: Data shown are estimates.Inflation-adjusted growth is calculated using the inflation rates asdetermined by the Consumer Price Index (CPI). Source: ArizonaDepartment of Revenue and Cochise College Center for Economic Research.

SIERRA VISTA SALES TAX REVENUE COLLECTIONS, ANNUAL COMPARISON

INDUSTRY GROUP 2012 2011 GROWTH ($) GROWTH (%)

Construction $1,089,537 $971,872 $117,665 12.1%

Other $157,257 $57,020 $100,237 175.8%

Communications & Utilities $1,632,235 $1,537,638 $94,597 6.2%

Services $484,159 $425,739 $58,420 13.7%

Wholesale Trade $143,679 $127,580 $16,099 12.6%

Finance & Insurance $9,875 $6,278 $3,597 57.3%

Arts & Entertainment $7,926 $6,258 $1,668 26.7%

Transporting & Warehousing $9,390 $9,936 -$546 -5.5%

Manufacturing $253,705 $276,902 -$23,197 -8.4%

Real Estate, Rental & Leasing $1,284,461 $1,348,937 -$64,476 -4.8%

Restaurant & Bar $1,791,836 $1,937,648 -$145,812 -7.5%

Retail Trade $8,695,224 $8,849,684 -$154,460 -1.7%

Accommodation $999,941 $1,313,296 -$313,355 -23.9%

TOTAL $16,559,215 $16,868,784 -$309,569 -1.8%

Source: Arizona Department of Revenue and Cochise College Center for Economic Research.

Restaurant and Bar SalesIn the first 11 months of 2012, restaurant and bar receipts in Sierra Vista were down 10.3 percent from the

same period of 2011, after adjusting for inflation. This followed three consecutive years of sales growth. The city’srestaurant and bar sales were down in 16 of the 22 months ended in November 2012. From January throughNovember 2012, Sierra Vista’s restaurant and bar sales accounted for 52.4 percent of the countywide total, downfrom 55.6 percent in the same period of 2011. Prior to 2012, Sierra Vista’s share of countywide restaurant and barsales increased steadily each year from just 43.1 percent in 2007. This was largely the result of the opening ofseveral new chain restaurants, including Buffalo Wild Wings, IHOP, My Big Fat Greek Restaurant (which closedin early 2013), Olive Garden, Outback Steakhouse, Panda Express, and Texas Roadhouse.

SIERRA VISTA ACCOMMODATION SALES

INFLATIONADJUSTED


2007 $18,699,564 23.9% 21.1%

2008 $23,046,036 23.2% 19.4%

2009 $22,499,564 -2.4% -2.0%

2010 $25,337,345 12.6% 11.0%

2011 $23,581,436 -6.9% -10.1%

2012* $16,656,982 -24.5% -26.6%

*January through November only; percent change and inflation-adjustedgrowth based on same period a year prior. Note: Inflation-adjusted growthis calculated using the inflation rates as determined by the Consumer PriceIndex (CPI). Data shown are estimates. Source: Arizona Department ofRevenue and Cochise College Center for Economic Research.

Accommodation SalesFrom January through November 2012, accommodation receipts in Sierra Vista were down 26.6 percent

from the same period the year prior, after adjusting for inflation. This followed a 10.1 percent decrease in2011. From January through November 2012, Sierra Vista’s accommodation sales accounted for 51.4 percentof the countywide total, down from 57.8 percent in the first 11 months of 2011. The city’s accommodationindustry has struggled over the past couple of years with sales down in 20 of the 22 months ended inNovember 2012. Part of the decline is due to changes in travel policy for military personnel on temporaryduty to Fort Huachuca, requiring many to now be billeted on post. Also, defense budget cuts have slowedtemporary duty travel to the fort overall for conferences and other official business.

Business Establishments and LicensesAccording to the U.S. Census Bureau, as of 2010 there were 1,091 business establishments with

employees located in the Sierra Vista area (zip codes 85635, 85636, and 85650). The industries with the largestnumbers of businesses were healthcare and social assistance with 176 establishments, followed by retail trade(173), professional, scientific, and technical services (124), other services (109), and accommodation andfood services (106). From 2009 to 2010, the number of businesses establishments in the Sierra Vista areaincreased by 2, or 0.2 percent. Compared to 2006, the number of business establishments in 2010 was downby 4 (-0.4 percent). According to the City of Sierra Vista, the year-end number of active business licenses


SIERRA VISTA RESTAURANT & BAR SALES

INFLATIONADJUSTED


2007 $64,832,192 5.7% 2.9%

2008 $66,034,769 1.9% -2.0%

2009 $67,166,692 1.7% 2.1%

2010 $70,375,231 4.8% 3.1%

2011 $74,541,692 5.9% 2.8%

2012* $62,862,385 -8.2% -10.3%

*January through November only; percent change and inflation-adjustedgrowth based on same period a year prior. Note: Inflation-adjusted growthis calculated using the inflation rates as determined by the Consumer PriceIndex (CPI). Data shown are estimates. Source: Arizona Department ofRevenue and Cochise College Center for Economic Research.

SIERRA VISTA BUSINESS LICENSES

2008 2009 2010 2011 2012

New Licenses 437 430 375 408 402

Cancelled/Non-renewed Licenses 116 161 297 151 130

Year-end Total Licenses 2,925 3,194 3,272 3,529 3,801

Source: City of Sierra Vista

within the city increased by 7.7 percent from 3,529 to 3,801 from 2011 to 2012. Business license figures arenot directly comparable to Census Bureau business establishment figures discussed above since businesslicenses are issued to non-employer business, including home-based businesses and sole proprietorships,which are not included in the Census survey.

Sierra Vista Retail Out-Shopping SurveyIn 2011, the Cochise College Center for Economic Research conducted a survey of Sierra Vista residents

to determine their level of retail out-shopping. Out-shopping refers to shopping done by Sierra Vistaresidents at businesses located outside the city. The survey included 400 Sierra Vista residents. The categoryof computer hardware and software saw the greatest percentage of out-shopping in 2011. Residents reportedconducting 48.2 percent of their shopping for computer hardware and software outside Sierra Vista. This wasfollowed by furniture (46.7 percent), music (CDs, tapes, etc.) (45.6 percent), and hobby supplies (45.1percent). Out-shopping for all other categories of merchandise was reported at less than 45 percent. Thecategory of groceries saw the lowest level of out-shopping at 22.5 percent, followed by gasoline (23.4 percent)and health and personal care items (25.1 percent). Sierra Vista residents reported conducting 21.6 percent oftheir retail shopping over the internet and 5.5 percent through catalogs.


SIERRA VISTA BUSINESS ESTABLISHMENTS

INDUSTRY 2006 2007 2008 2009 2010

Accommodation & food services 96 108 104 98 106

Admin., support, waste mgmt, & remediation services 71 71 70 68 67

Arts, entertainment, & recreation 11 13 12 10 12

Construction 107 107 112 99 89

Educational services 16 18 18 17 14

Finance & insurance 63 62 69 65 63

Health care and social assistance 156 168 173 175 176

Industries not classified 0 0 0 0 1

Information 20 21 18 18 17

Management of companies & enterprises 2 3 4 4 4

Manufacturing 22 17 19 18 18

Mining, quarrying, and oil and gas extraction 1 1 1 1 1

Other services (except public administration) 107 104 101 98 109

Professional, scientific, and technical services 113 129 116 114 124

Real estate & rental & leasing 67 69 74 67 63

Retail trade 188 185 179 180 173

Transportation & warehousing 18 25 24 27 26

Utilities 9 10 8 6 5

Wholesale trade 24 25 23 24 23

TOTAL 1,095 1,136 1,127 1,089 1,091

Note: Data for zip codes 85635, 85636, and 85650; includes only business establishments with employees.Source: U.S. Census Bureau and Cochise College Center for Economic Research.

RETAIL OUT-SHOPPING BY SIERRA VISTA RESIDENTS, 2011

CATEGORY OF SALES OUT-SHOPPING

Computer hardware/software 48.2Furniture 46.7Music (CDs, tapes, etc.) 45.6Hobby supplies 45.1Video (DVDs, VHS tapes, etc.) 44.3Books 44.0Jewelry 44.0Electronics 43.1Home Furnishings 42.4Sporting goods 37.9Children’s clothing 37.1Appliances 36.6Women’s clothing 36.3Men’s clothing 36.1Auto parts and accessories 35.7Building materials 32.0Beer, wine, and liquor 31.1Hardware 31.0Garden supplies 28.0Health and personal care items 25.1Gasoline 23.4Groceries 22.5

Source: Cochise College Center for Economic Research.


OutlookDefense budget cuts that are the natural upshot of winding down two wars threaten sales activities in the

Sierra Vista area. While the rest of the state and nation suffered through the severe effects of the GreatRecession, Sierra Vista was largely buffered from the worst of it due to increased defense spending on FortHuachuca and its missions. Those increases were largely tied to the wars in Iraq and Afghanistan. The localeconomy has already taken a hit from a decline in defense spending. Changes in travel policy for militarypersonnel on temporary duty to the fort now require many to be housed on post instead of in the localeconomy. Also, defense budget cuts have slowed temporary duty travel to the fort overall for conferences andother official business. This has impacted the local hospitality industries that cater to those on temporaryduty. Aside from declines in temporary duty, other changes are having, and will continue to have, an impact.Many defense contracts have not been renewed and those jobs are now performed by government civilservants who tend to be paid less. The result is an overall decline in disposable income in the area, whichimpacts retail and other industries. Also, the trend has been to replace contractor positions with fewer civilservants resulting in an overall decline in employment.

On the positive side, Sierra Vista Regional Health Center recently announced its intent to partner withTennessee-based RegionalCare Hospital Partners (RCHP), which would potentially lead to a new $100million, 100-bed hospital in Sierra Vista, funded and constructed by RCHP. This would give a boost toconstruction related spending in the area. A formal agreement on the partnership is anticipated to becomplete in spring 2013, with groundbreaking on a new hospital by the end of 2013 and constructioncontinuing for three to four years. Updated healthcare facilities also have the potential to lure more businessesand residents to the area, providing a boon to economic development efforts. Moreover, as the nationaleconomy continues to recover and housing markets in other areas of the nation improve, the Sierra Vista areais likely to see a resumption of the influx of retirees, which will help increase sales in the local area.

Residential ConstructionIn 2012, the number of permits issued for new residential construction in Sierra Vista was down 8.2

percent, following a 9.5 percent increase the year prior. There were 169 permits issued in 2012, down from 184in 2011. The number of new home permits was down more than 75 percent from the housing boom peak in2004. Countywide, new residential construction permits were down 14.7 percent in 2012. The droprepresented the 7th consecutive year of declining residential construction in Cochise County. The number ofnew home permits countywide in 2012 was down more than 75 percent from its peak, which occurred in 2005.

Although Fort Huachuca is part of Sierra Vista city limits and the fort’s residents are included in the city’spopulation numbers, construction on the fort, which is federally owned land, is not subject to the city’sbuilding permit process. For that reason, new construction on the fort is not included in the city or county’s

housing, real estate, and commercial construction

Casa del Sol Apartments, a multifamily affordable senior rental housing development, was completed in late 2012


NEW HOME PERMITS(SINGLE FAMILY RESIDENTIAL)

COCHISE COUNTY SIERRA VISTAYEAR PERMITS CHANGE PERMITS CHANGE

2003 926 —— 595 ——2004 1,046 13.0% 689 15.8%2005 1,108 5.9% 577 -16.3%2006 900 -18.8% 427 -26.0%2007 472 -47.6% 178 -58.3%2008 404 -14.4% 199 11.8%2009 380 -5.9% 197 -1.0%2010 347 -8.7% 168 -14.7%2011 320 -7.8% 184 9.5%2012 273 -14.7% 169 -8.2%

Source: U.S. Census Bureau, Cochise County, City of Sierra Vista, andCochise College Center for Economic Research.

building permit numbers. In recent years, residential communities on the fort have been constructed by localbuilders Castle & Cooke Arizona and R. L. Workman Homes. Residential construction is projected tocontinue on Fort Huachuca through 2014. The overall number of housing units on post is projected to dropfrom approximately 1,200 in 2010 to 1,064 in 2014. The net decline will result from the demolition of olderunits and the construction of fewer units to replace them. This may result in an increased demand for off-post housing in Sierra Vista and surrounding communities.

Major Planned DevelopmentsCastle & Cooke Arizona plans to develop 2,000 acres in the city. The planned Tribute community will

consist of a mixture of single-family lots ranging from 3,150 to more than 20,000 square feet; multifamilyunits including apartments, townhouses, and condominiums; and commercial and institutionaldevelopment. The specific plan also provides for a linear park, community and recreational opportunities,and open space. It incorporates neo-traditional neighborhood design, including houses oriented to the streetand sidewalk, pedestrian-friendly design, neighborhood parks, and mixed use development. Thedevelopment is not likely to proceed until housing market conditions at the national, state, and local levelssee sustained improvement.

Home SalesIn the Sierra Vista area, sales of site built homes were down in 6 of 7 years from 2006 through 2012. The

only year to see an increase was 2009, with modest growth that year of 2.4 percent. Sales in 2012 were downmore than 50 percent from their 2005 peak. Countywide, sales of site-built homes hit bottom in 2008. Since

COCHISE COUNTY HOME SALES (SITE-BUILT)

CHANGE MEDIAN AVERAGE AVERAGE PRICE AVERAGE PRICE AVERAGEIN MEDIAN PRICE SALE/ASKING PER SQ FT PER SQ FT CHANGE DAYS ON

YEAR VOLUME VOLUME PRICE CHANGE PRICE (HEATED/COOLED) (HEATED/COOLED) MARKET

2004 1,591 —— $150,000 —— 97.8% $92.74 —— 1112005 1,807 13.6% $186,000 24.0% 98.4% $113.52 22.4% 1072006 1,446 -20.0% $205,250 10.3% 97.6% $127.11 12.0% 1142007 1,289 -10.9% $206,579 0.6% 96.4% $122.44 -3.7% 1342008 1,044 -19.0% $195,000 -5.6% 95.7% $115.42 -5.7% 1502009 1,049 0.4% $189,000 -3.1% 95.5% $110.00 -4.7% 1482010 1,078 2.8% $173,250 -8.3% 94.6% $98.40 -10.5% 1442011 1,048 -2.8% $156,000 -10.0% 94.6% $88.82 -9.7% 1572012 1,084 3.4% $146,500 -6.1% 93.9% $84.51 -4.9% 162

Note: Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson Area Multiple Listing Service. Includestownhouses and condominiums. Source: Southeast Arizona Multiple Listing Service, Tucson Area Multiple Listing Service, and Cochise CollegeCenter for Economic Research.


SIERRA VISTA AREA HOME SALES (SITE-BUILT)



2004 1,263 —— $162,500 —— 98.4% $97.25 —— 1032005 1,495 18.4% $199,900 23.0% 99.1% $118.67 22.0% 1012006 1,120 -25.1% $216,713 8.4% 98.1% $132.77 11.9% 1102007 978 -12.6% $217,479 0.4% 96.9% $128.48 -3.2% 1352008 796 -18.6% $209,500 -3.7% 96.1% $122.31 -4.8% 1462009 815 2.4% $197,000 -6.0% 96.2% $114.82 -6.1% 1412010 785 -3.7% $194,463 -1.3% 95.8% $106.67 -7.1% 1362011 752 -4.2% $179,995 -7.4% 95.5% $97.04 -9.0% 1582012 733 -2.5% $168,761 -6.2% 95.5% $92.47 -4.7% 166

Note: Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson Area Multiple Listing Service. Includestownhouses and condominiums. The Sierra Vista Area includes Sierra Vista, Hereford/Palominas, Huachuca City, Tombstone, Whetstone, andsurrounding unincorporated areas. Source: Southeast Arizona Multiple Listing Service, Tucson Area Multiple Listing Service, and Cochise CollegeCenter for Economic Research.

then, they have crawled along the bottom with modest growth in 3 of 4 years. Sales volume in Cochise Countyin 2012 was up 3.8 percent from the trough in 2008, but remained 40 percent below the 2005 peak.

The median price of site-built homes in the Sierra Vista area fell 6.2 percent in 2012—the fifthconsecutive year of decline. The median price in 2012 was 22.4 percent below the 2007 peak and was onlyslightly above 2004 levels. Countywide, the median price of site-built homes fell by 6.1 percent in 2012—alsothe fifth straight year of decline. The median price in 2012 was 29.1 percent below the 2007 peak and wasbelow 2004 price levels. Part of the reason for the price declines has been an increasing number of foreclosedhomes on the market, which tend to be sold at lower prices. Foreclosures also affect the price of other, non-foreclosed homes as they put downward pressure on prices through the appraisal process, since appraisersconsider all recent comparable sales in the area. In the Sierra Vista area, 22.5 percent of site-built homes soldin 2012 were foreclosures—the same level as 2011. Countywide, foreclosed homes accounted for 26.4 percentof sales, down from 30 percent.


SIERRA VISTA AREA DISTRIBUTION OF HOME PRICES, 2012

MINIMUM MAXIMUM MIDPOINT NUMBER PERCENT OFPRICE PRICE PRICE OF HOMES TOTAL HOMES

$14,000 $58,182 $36,091 57 7.8%

$58,182 $102,364 $80,273 99 13.6%

$102,364 $146,545 $124,455 130 17.8%

$146,545 $190,727 $168,636 167 22.9%

$190,727 $234,909 $212,818 115 15.8%

$234,909 $279,091 $257,000 93 12.7%

$279,091 $323,273 $301,182 37 5.1%

$323,273 $367,455 $345,364 11 1.5%

$367,455 $411,636 $389,545 8 1.1%

$411,636 $455,818 $433,727 9 1.2%

$455,818 $500,000 $477,909 4 0.5%

Note: Includes only those homes listed on Southeast Arizona MultipleListing Service and/or Tucson Area Multiple Listing Service. Includessite-built homes, townhouses, and condominiums. The Sierra Vista Areaincludes Sierra Vista, Hereford/Palominas, Huachuca City, Tombstone,Whetstone, and surrounding unincorporated areas. Source: SoutheastArizona Multiple Listing Service, Tucson Area Multiple Listing Service,and Cochise College Center for Economic Research.

SIERRA VISTA AREA HOME SALES, 2012

Note: Includes only those homes listed on Southeast Arizona MultipleListing Service and/or Tucson Area Multiple Listing Service. Includessite-built homes, townhouses, and condominiums. The Sierra Vista Areaincludes Sierra Vista, Hereford/Palominas, Huachuca City, Tombstone,Whetstone, and surrounding unincorporated areas. Prices shown aremidpoint prices; each bin represents a price range of $44,182 (+/- $22,091 from midpoint price shown). Source: Southeast ArizonaMultiple Listing Service, Tucson Area Multiple Listing Service, andCochise College Center for Economic Research.

180160140120100806040200

$36,0

91

$80,2

73

$124

,455

$168

,636

$212

,818

$257

,000

$301

,182

$345

,364

$389

,545

$433

,727

$477

,909

Numbe

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COCHISE COUNTY HOME SALES (MANUFACTURED HOMES)



2004 234 —— $76,000 —— 93.7% $53.28 —— 1322005 290 23.6% $91,000 19.7% 96.5% $65.41 22.8% 1312006 229 -21.0% $101,050 11.0% 95.1% $73.25 12.0% 1292007 211 -7.7% $110,000 8.9% 94.1% $73.52 0.4% 1472008 140 -33.9% $105,850 -3.8% 93.5% $68.79 -6.4% 1582009 113 -19.1% $97,000 -8.4% 93.0% $63.36 -7.9% 1642010 169 49.6% $71,000 -26.8% 90.6% $55.67 -12.1% 1472011 156 -7.7% $58,250 -18.0% 92.2% $46.14 -17.1% 1562012 202 29.5% $53,000 -9.0% 90.4% $41.49 -10.1% 169

Note: Includes only those homes listed on Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson AreaMultiple Listing Service. Includes mobile homes. Source: Southeast Arizona Multiple Listing Service, Tucson Area Multiple Listing Service, andCochise College Center for Economic Research.

Manufactured Home SalesSales volume of existing manufactured homes in the Sierra Vista area and countywide were up

considerably in 2012. Sales were up 26.7 percent in the Sierra Vista area and 29.5 percent countywide. In theSierra Vista area, sales volume remained more than 50 percent below the 2005 peak, despite the strong

increase from 2011’s trough. Countywide, sales volume in 2012 was up nearly 80 percent from the trough in2009, but remained more than 30 percent below the 2005 peak. Median prices dropped for 5 consecutiveyears from 2008 through 2012, both in the Sierra Vista area and countywide. The manufactured home marketwas hit especially hard by foreclosures, which explains a large portion of the price declines and recent upwardpressure on sales volume. In 2012, 43.6 percent of manufactured home sales countywide, and 47.7 percent inthe Sierra Vista area, were foreclosures.


SIERRA VISTA AREA HOME SALES (MANUFACTURED HOMES)



2004 200 —— $80,360 —— 94.9% $56.30 —— 1232005 258 29.3% $97,000 20.7% 96.8% $66.86 18.8% 1202006 197 -23.6% $110,000 13.4% 95.5% $75.36 12.7% 1172007 177 -10.5% $115,500 5.0% 94.5% $75.19 -0.2% 1402008 118 -33.1% $115,000 -0.4% 94.3% $69.56 -7.5% 1562009 102 -13.6% $103,900 -9.7% 94.3% $65.81 -5.4% 1652010 109 6.9% $69,000 -33.6% 92.2% $56.90 -13.5% 1422011 101 -7.3% $60,000 -15.0% 93.8% $46.52 -18.2% 1762012 128 26.7% $55,000 -8.3% 91.6% $40.66 -12.6% 185

Note: Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson Area Multiple Listing Service. Includes mobilehomes. The Sierra Vista Area includes Sierra Vista, Hereford/Palominas, Huachuca City, Tombstone, Whetstone, and surrounding unincorporatedareas. Source: Southeast Arizona Multiple Listing Service, Tucson Area Multiple Listing Service, and Cochise College Center for Economic Research.

SIERRA VISTA HOUSING AFFORDABILITY INDEX (HAI)

MONTHLYPRINCIPAL AND

MEDIAN FAMILY MEDIAN AMOUNT EFFECTIVE INTERESTYEAR INCOME HOME PRICE FINANCED INTEREST RATE PAYMENT HAI

2004 $51,499 $157,750 $126,200 6.02% $758 141.5

2005 $52,983 $191,385 $153,108 6.08% $926 119.2

2006 $54,468 $212,000 $169,600 6.64% $1,088 104.3

2007 $55,952 $213,000 $170,400 6.24% $1,048 111.2

2008 $59,611 $206,500 $165,200 6.18% $1,010 123.0

2009 $65,220 $195,722 $156,578 5.18% $858 158.4

2010 $64,929 $191,600 $153,280 4.93% $816 165.8

2011 $67,260 $180,000 $144,000 4.84% $759 184.6

2012p $69,213 $168,761 $135,009 4.04% $648 222.5

p = preliminary. Note: Based on the median home price for residential homes (site built, manufactured homes,mobile homes, townhouses, and condominiums) in Sierra Vista sold on Southeast Arizona Multiple ListingService and/or Tucson Area Multiple Listing Service. Presumes a 30-year conventional fixed-rate mortgage, a20 percent down payment, and a 25 percent qualifying income ratio (principal and interest only). Source:Cochise College Center for Economic Research.

Housing Affordability According to the U.S. Census Bureau, the homeownership rate in Sierra Vista, based on sample data from

2009 to 2011, is 56.3 percent. A large contributor to the relatively low rate of home ownership is the militarypopulation, which tends to be younger and transient, and many of whom reside in family housing and groupquarters on Fort Huachuca. Another influence on homeownership rates is affordability. The HousingAffordability Index (HAI) gauges whether a family with the area’s median income would qualify for amortgage on a median-priced home. The HAI for Sierra Vista in 2012 was 222.5, its highest level on recordwith records going back to 2004. In 2012, homes in Sierra Vista were the most affordable they have been inrecent years.

In interpreting the HAI, a value of 100 indicates a familywith the median income has exactly enough income to qualifyfor a mortgage on a median-priced home, assuming a 20percent down payment and a qualifying income ratio of 25percent (i.e., the monthly principal and interest paymentcannot exceed 25 percent of the family’s monthly income). AnHAI above 100 indicates that a family earning the medianincome has more than enough income to qualify for amortgage on a median-priced home. Sierra Vista’s HAI of222.5 indicates that a family with the median income had 222.5percent of the income necessary to qualify for a conventionalloan covering 80 percent of a median-priced, single-familyhome. In 2012, the estimated median family income for SierraVista was $69,213 and the median home price was $168,761(includes site-built, manufactured, and mobile homes, andtownhouses and condominiums). The HAI considers the

average effective interest rate (contract rate plus fees) on a fixed, 30-year conventional mortgage over the 12-month period as reported by the Federal Housing Finance Agency (4.04 percent in 2012).

VA FinancingIn considering housing affordability in Sierra Vista, it is important to take into account the large number

of active duty military and veterans residing in the area. As of the 2009-2011 American Community Survey,24.3 percent of Sierra Vista’s population ages 18 and older are civilian veterans of the military, more than two-and-a-half times the national level. As of September 2012, approximately 1,800 active duty militarypersonnel, along with their family members, were assigned to Fort Huachuca, with an additional 147deployed from the fort to other locations worldwide. This is important to housing market analysis since mostactive duty military personnel and veterans finance their homes using Veterans Administration (VA)guaranteed loans. VA loans continue to offer zero-down financing, even as loan paperwork and creditrequirements have increased significantly in recent years, and debt-to-income ratios have become morerestrictive. The large number of VA eligible buyers creates an affordability bonus since a major obstacle formany buyers, especially first-time buyers, is the down payment.

Affordable Housing DevelopmentsA focus of the city in recent years has been affordable housing. In the city’s West End, the Crossing Point

community, developed in partnership with the Sierra Vista Industrial Development Authority, is a 57-unitaffordable housing development. The Crossing Point community offers moderately priced two-story, three- andfour-bedroom homes with down payment assistance for those who qualify. Another affordable housingdevelopment, also in the city’s West End, is Casa del Sol Apartments, an 88-unit, multifamily affordable seniorrental housing development completed in late 2012. According tothe 2009-2011 American Community Survey, 23.3 percent ofhomeowners and 39.2 percent of renters in Sierra Vista pay 30percent or more of their income for housing costs, suggesting aconsiderable demand for affordable housing, particularly forrenters. Thirty percent of gross income is a common thresholdabove which housing costs are considered to be not affordable.

Rental MarketFrom 2009 to 2011, 43.7 percent of occupied housing units

in Sierra Vista were renter-occupied, according to the U.S.Census Bureau. The rental vacancy rate was 11.9 percent. Thelargest number of occupied rental units in the city from 2009 to2011 rented between $750 and $999 per month (rent plusutilities), accounting for nearly 30 percent of all rentals. Unitsrenting for $1,000 to $1,499 accounted for the second largestshare (26.7 percent) followed by $500 to $749 (18.5 percent).


SIERRA VISTA RENTAL UNITS

*Gross rent includes contract rent plus utilities. Note: Includes occupiedrental units only; figures expressed in 2011 dollars. Source: U.S. CensusBureau (2009-2011 American Community Survey 3-Year Estimates) andCochise College Center for Economic Research.

3,000

2,500

2,000

1,500

1,000

500

0Lessthan$200

$200to

$299

$300to

$499

$500to

$749

$750to

$999

$1,000to

$1,499

$1,500or

more

Numbe

r of U

nits

36 53 516 1,242 1,996 1,791 1,071

Gross Monthly Rent*

Hous

ing A

ffordab

ility I

ndex

SIERRA VISTA HOUSING AFFORDABILTY INDEX

250

225

200

175

150

125

1002007 2008 2009 2010 2011 2012

p = preliminary. Note: Based on the median home price for residentialhomes (site built, manufactured homes, mobile homes, townhouses, and condominiums) in Sierra Vista sold on Southeast Arizona MultipleListing Service and/or Tucson Area Multiple Listing Service. Presumes a30-year conventional fixed-rate mortgage, a 20 percent down payment, and a 25 percent qualifying income ratio (principal and interest only).Source: Cochise College Center for Economic Research.

OutlookForeclosed homes offered at lower prices will continue to dampen demand for new home construction

in Sierra Vista and countywide in 2013. Foreclosure sales will place upward pressure on sales volume forexisting homes, but place continued downward pressure on prices. As of early 2013, foreclosures on themarket appeared to be moderating, but remained near historical highs. On the commercial construction side,Sierra Vista Regional Health Center announced its intent to partner with Tennessee-based RegionalCareHospital Partners (RCHP), which would lead to a potential new $100 million, 100-bed hospital in SierraVista, with construction funded by RCHP. A formal agreement on the partnership is anticipated to becomplete in spring 2013, with groundbreaking on a new hospital by the end of 2013 and constructionoccurring over three to four years.

Commercial ConstructionSierra Vista has seen extraordinary growth in commercial construction in recent years. From 2005

through 2011, 126 permits were issued for new commercial construction projects totaling nearly $236million. In 2012, new commercial construction was down by more than half from 2011 as was at its lowestlevel since 2004. The boom in commercial construction in Sierra Vista over the past few years, beginningimmediately following the survival of Fort Huachuca through the Department of Defense’s Base Realignmentand Closure (BRAC) process, is evident in new hotels, restaurants, large retailers, office complexes, and otherbusinesses throughout the city.


COMMERCIAL BUILDINGPERMITS (NEW CONSTRUCTION),

CITY OF SIERRA VISTAVALUATION

YEAR PERMITS VALUATION CHANGE2004 13 $7,305,606 157.9%2005 14 $18,468,233 152.8%2006 40 $61,258,338 231.7%2007 24 $43,160,924 -29.5%2008 12 $21,424,347 -50.4%2009 15 $43,747,931 104.2%2010 12 $21,276,752 -51.4%2011 9 $26,379,585 24.0%2012 3 $12,876,107 -51.2%

Note: Valuation does not include value of land. Source:City of Sierra Vista and Cochise College Center forEconomic Research.

BankingSierra Vista is served by five banks: Wells Fargo, J.P. Morgan Chase, National Bank of Arizona, Bank of

America, and Compass Bank. Bank deposits in Sierra Vista in 2012 were up 8.1 percent—the thirdconsecutive year of growth. The year 2009 saw a 35.9 percent decline due primarily to a surge in deposits toBank of America the year prior as a result of its acquisition of Countrywide Financial, LaSalle Bank, andMerrill Lynch. The acquisitions initially resulted in funds being redirected to local Bank of America branches,driving up deposits. Likewise, deposits at the county level surged in 2008 led by the increase in deposits toBank of America, then returned to normal levels in 2009. At the county level, deposits were up 4.7 percent in2012. Bank deposits in Sierra Vista in 2012 accounted for 56.8 percent of the Cochise County market, up from55 percent in 2011. (Note: Bank deposit data include only those deposits made to commercial banks. They do notinclude deposits to credit unions or other financial institutions. Annual deposits include those made each year inthe 12 month period ending June 30.)

banking and bankruptcy filings

BANK DEPOSITS

BISBEE COCHISE COUNTYYEAR AMOUNT CHANGE AMOUNT CHANGE

2008 $825,180,000 54.5% $1,295,970,000 25.4%

2009 $528,537,000 -35.9% $1,000,155,000 -22.8%

2010 $551,575,000 4.4% $1,014,793,000 1.5%

2011 $569,146,000 3.2% $1,034,039,000 1.9%

2012 $614,967,000 8.1% $1,082,302,000 4.7%

Note: Data reflect total deposits as of June 30 each year. Source: FederalDeposit Insurance Corporation and the Cochise College Center forEconomic Research.

Chase Bank


2008 2009 2010 2011 2012

$900$850$800$750$700$650$600$550$500

Note: Data reflect total deposits as of June 30 each year. Source: FederalDeposit Insurance Corporation and Cochise College Center forEconomic Research.

SIERRA VISTA BANK DEPOSITS

MI

LL

IO

NS

Bankruptcy FilingsIn 2011, there were 325 total bankruptcies (all chapters) filed from within Cochise County, down 8.5

percent from 2010. This followed a doubling of filings from 2007 to 2010. Cochise County’s bankruptcy ratedecreased from 2.7 to 2.49 bankruptcies per 1,000 residents in 2011, which was 56.2 percent below the stateand 45 percent below the national level, reflecting a relatively healthy environment for lending and borrowingin Cochise County.

SIERRA VISTA BANK DEPOSITS, SHARE OF COCHISE COUNTY MARKET

SHARE OF YEAR COCHISE COUNTY MARKET

2008 . . . . . . . . . . . . . . . . .63.7%

2009 . . . . . . . . . . . . . . . . .52.8%

2010 . . . . . . . . . . . . . . . . .54.4%

2011 . . . . . . . . . . . . . . . . .55.0%

2012 . . . . . . . . . . . . . . . . .56.8%

Source: Federal Deposit Insurance Corporation and Cochise CollegeCenter for Economic Research.

COCHISE COUNTY BANKRUPTCY FILINGS

FILINGS PER YEAR POPULATION TOTAL FILINGS 1,000 POP.

2007 129,522 180 1.39

2008 130,567 234 1.79

2009 130,296 339 2.60

2010 131,346 355 2.70

2011 130,537 325 2.49

Source: U.S. Bankruptcy Court (District of Arizona), U.S. Census Bureau,Arizona Office of Employment and Population Statistics, and CochiseCollege Center for Economic Research.

BANKRUPTCY FILINGS (PER 1,000 RESIDENTS)

YEAR COCHISE COUNTY ARIZONA UNITED STATES

2007 1.39 1.74 2.82

2008 1.79 3.07 3.67

2009 2.60 5.42 4.80

2010 2.70 6.70 5.16

2011 2.49 5.68 4.53


2007 2008 2009 2010 2011

7

6

5

4

3

2

1

0


BANKRUPTCY FILINGS(PER 1,000 RESIDENTS)

Arizona Cochise CountyUnited States◆

◆

◆◆

◆

Source: Federal Deposit Insurance Corporation and the Cochise CollegeCenter for Economic Research.

Bank of America 15.8%

SIERRA VISTA BANK DEPOSITS, MARKET SHARE (CITY), 2012

National Bankof Arizona16.5%

◆

Wells Fargo39.1%

J.P. MorganChase Bank

20.4%

CompassBank8.3%


OverviewCochise County’s economy is significantly impacted by Mexico. The 82-mile border between Cochise

County and Sonora, Mexico serves as a crossover point for millions of visitors from Mexico each year—fromday shoppers, workers, and commercial traffic crossing legally at the designated ports of entry at Naco andDouglas, to drug and human smugglers who cross illegally. The Naco port of entry is located approximately35 miles, and the Douglas port approximately 50 miles, southeast of Sierra Vista. Cochise College Center forEconomic Research (CER) focus group discussions in Sierra Vista indicate the city hosts a considerablenumber of Mexican shoppers, indicated by the large share of vehicles with license plates from Sonora, Mexicoparked daily at the city’s retail outlets. Recent efforts have been made by the Sierra Vista Area Chamber ofCommerce, Southeastern Arizona Governments Organization, and U.S. and Sonoran business andcommunity leaders to strengthen partnerships in an effort to increase business ties and tourism on both sidesof the border.

With thousands of border crossings into the United States each day at the Naco POE, the area serves as a gateway to Cochise County’s retail shopping outlets

Mexico

Peso

s to t

he D

ollar

EXCHANGE RATE: MEXICAN PESO TO U.S. DOLLAR

161514131211109

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

Note: As of the last business day of each month. Rates vary daily. Source: International Monetary Fund and Cochise CollegeCenter for Economic Research.

2009 2010 2011 2012


US-MEXICO BORDER CROSSINGS, NACO PORT

(PASSENGERS & PEDESTRIANS)VEHICLES PASSENGERS PEDESTRIANS TOTAL

CROSSINGS % CHANGE CROSSINGS % CHANGE CROSSINGS % CHANGE CROSSINGS % CHANGE

2006 321,357 0.3% 915,501 -19.2% 90,020 -9.9% 1,005,521 -18.5%2007 323,422 0.6% 866,682 -5.3% 97,729 8.6% 964,411 -4.1%2008 266,225 -17.7% 708,382 -18.3% 89,174 -8.8% 797,556 -17.3%2009 278,960 4.8% 663,231 -6.4% 81,815 -8.3% 745,046 -6.6%2010 262,809 -5.8% 516,889 -22.1 78,748 -3.7% 595,637 -20.1%2011 236,330 -10.1% 468,816 -9.3% 79,115 0.5% 547,931 -8.0%2012* 107,503 9.5% 194,776 2.0% 28,066 -20.3% 222,842 -1.5%

*January – May only; percent change based on same period one year prior. Note: Includes only those crossing from Mexico into the United States.Source: U.S. Customs and Border Protection.

Trends in the numbers of shoppers from Mexico are impacted by exchange rates: A strong peso makesU.S. goods and services less expensive for Mexican visitors encouraging shopping in the United States, whilea weak peso makes U.S. goods and services more expensive. The peso weakened against the dollar from thefirst half of 2011 through the first half of 2012. From mid-2012 through the end of the year, the pesostrengthened. Inflation rates, which have traditionally been higher in Mexico, also influence cross-bordercommerce. As prices rise in Mexico, relative to those in the United States, this encourages shopping in theUnited States.

REPRESENTATIVE EXCHANGERATES: MEXICAN PESO

TO U.S. DOLLAR2011 January . . . . . . . . . . . . . . . . . . . .12.1519

February . . . . . . . . . . . . . . . . . . .12.1062March . . . . . . . . . . . . . . . . . . . . .11.9084April . . . . . . . . . . . . . . . . . . . . . . .11.5868May . . . . . . . . . . . . . . . . . . . . . . .11.5780June . . . . . . . . . . . . . . . . . . . . . .11.7230July . . . . . . . . . . . . . . . . . . . . . . .11.7425August . . . . . . . . . . . . . . . . . . . . .12.3480September . . . . . . . . . . . . . . . . . .13.7994October . . . . . . . . . . . . . . . . . . . .13.1802November . . . . . . . . . . . . . . . . . .13.6100December . . . . . . . . . . . . . . . . . .13.9787

2012 January . . . . . . . . . . . . . . . . . . . .13.0077February . . . . . . . . . . . . . . . . . . .12.7891March . . . . . . . . . . . . . . . . . . . . .12.8093April . . . . . . . . . . . . . . . . . . . . . . .13.2093May . . . . . . . . . . . . . . . . . . . . . . .14.3047June . . . . . . . . . . . . . . . . . . . . . .13.4084July . . . . . . . . . . . . . . . . . . . . . . .13.2833August . . . . . . . . . . . . . . . . . . . . .13.2571September . . . . . . . . . . . . . . . . . .12.8695October . . . . . . . . . . . . . . . . . . . .13.0112November . . . . . . . . . . . . . . . . . .12.9268December . . . . . . . . . . . . . . . . . .12.9880

Note: As of the last business day of each month. Ratesvary daily. Source: International Monetary Fund.

INFLATION RATE, CONSUMER PRICES

MEXICO UNITED STATES

2008 5.1% 3.8%

2009 5.3% -0.4%

2010 4.2% 1.6%

2011 3.4% 3.2%

2012 *4.0% 2.1%

*Estimate. Source: International Monetary Fund andU.S. Bureau of Labor Statistics.

Naco, SonoraThe town of Naco, Sonora, Mexico shares a border with Naco, Arizona, an unincorporated area of

Cochise County bordering Bisbee. The population of Naco, Sonora as of 2010 was approximately 6,400,according to Mexico’s Instituto Nacional de Estadística y Geografía (INEGI). The population of Naco,Arizona as of Census 2010 was 1,046. The Naco Port of Entry is open 24 hours a day, 7 days a week to vehicleand pedestrian traffic. With thousands of crossings each day, the Naco Port of Entry serves as a gateway toCochise County’s retail shopping outlets. A 2007-2008 study by University of Arizona indicated 80.1 percent


of Mexican residents entering the United States through Naco did so for the purpose of shopping—thesecond highest of all ports in Arizona behind Douglas, also located in Cochise County. In recent years,numbers of vehicles, passengers, and pedestrians through Naco have been on the decline; however, the first 5months of 2012 showed signs of a rebound in vehicle and passenger crossings, although pedestrian countsremained down.

US-MEXICO BORDER CROSSINGS, DOUGLAS PORT

(PASSENGERS & PEDESTRIANS)VEHICLES PASSENGERS PEDESTRIANS TOTAL

CROSSINGS % CHANGE CROSSINGS % CHANGE CROSSINGS % CHANGE CROSSINGS % CHANGE

2006 1,983,618 -7.2% 4,557,279 -3.6% 760,211 6.7% 5,317,490 -2.3%2007 1,776,456 -10.4% 4,155,386 -8.8% 1,014,174 33.4% 5,169,560 -2.8%2008 1,711,176 -3.7% 3,921,971 -5.6% 1,289,903 27.2% 5,211,874 0.8%2009 1,514,446 -11.5% 3,323,084 -15.3% 1,294,459 0.4% 4,617,543 -11.4%2010 1,431,813 -5.5% 2,933,057 -11.7% 1,096,084 -15.3% 4,029,141 -12.7%2011 1,393,181 -2.7% 2,659,508 -9.3% 1,030,357 -6.0% 3,689,865 -8.4%2012* 584,809 0.8% 1,095,965 -0.3% 505,079 14.9% 1,601,044 4.0%

*January – May only; percent change based on same period one year prior. Note: Includes only those crossing from Mexico into the United States.Source: U.S. Customs and Border Protection.

2007 2008 2009 2010 2011

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

Note: Includes only those crossing from Mexico into the United States.Source: U.S. Customs and Border Protection.

US-MEXICO BORDER CROSSINGS:NACO, AZ

PASSENGERS PEDESTRIANSTOTAL◆

◆

◆◆

◆◆

Agua Prieta, SonoraThe City of Douglas shares a border with Agua Prieta, Sonora, Mexico. As of 2010, Agua Prieta’s

population was just under 80,000, according to Mexico’s Instituto Nacional de Estadística y Geografía(INEGI). Since the early 1990s, Agua Prieta has seen a considerable increase in maquiladoras (twin factorieswith a presence on both sides of the border that manufacture and assemble products for export). Many of themanufacturing plants in Agua Prieta operate under the maquiladoras concept in which Douglas serves as thewarehouse distribution center and Agua Prieta the manufacturing epicenter. Agua Prieta has more than 20manufacturing plants with multiple warehouse operations in Douglas. Major industrial employers in AguaPrieta include Levolor Kirsh, Commercial Vehicle Group, Takata, Velcro USA, Standex International, andAlstyle Apparel & Activewear, which built a 700,000 square-foot manufacturing facility in 2011 employingapproximately 3,000 workers. The Douglas Port of Entry is open 24 hours a day, 7 days a week to vehicle andpedestrian traffic. A 2007-2008 University of Arizona study indicated 81.6 percent of Mexican residentsentering through Douglas did so for the purpose of shopping—the highest of all ports in Arizona. In recentyears, numbers of vehicles, passengers, and pedestrians through Douglas have been on the decline; however,the first 5 months of 2012 showed a considerable rebound due to a surge in pedestrian crossings.


DOUGLAS INTERNATIONAL PORT AUTHORITYThe Douglas International Port Authority is led by private and public sector executives from the area’s

trade/logistics business service sector, cross-border manufacturing, agribusiness industries, and communityand economic development. Their primary mission is to promote trade and commerce with a focus on theexpansion and further development of the Douglas Port of Entry, the second largest commercial port inArizona with more than $1 billion in trade conducted each year.

Economic Impact of Mexican VisitorsA 2007-2008 study by the University of Arizona found that Mexican visitors to Cochise County

accounted for 5.3 percent of countywide taxable sales. Mexican visitors spent an annual $186.4 million inCochise County, with 55 percent of that occurring in retail stores, 24.1 percent in grocery stores, and 7.3percent in restaurants. Accounting for indirect and induced impacts, Mexican visitors were responsible for$211.8 million in sales, 1,763 jobs, and $36.5 million in income countywide. Statewide, direct expendituresby Mexican visitors crossing through Douglas totaled $466.4 million ($253 per party) according to the study.Those entering through Naco spent $98.4 million ($277 per party) while in Arizona. Although statewidedirect expenditures totaled $564.8 million for both ports, only $186.4 million, or about one-third, was spentwithin Cochise County, with more than two-thirds of that spent in Douglas.

U.S. Travelers to MexicoThe Douglas and Naco ports also serve as crossover points for more than 2 million U.S. visitors traveling

to Mexico each year. As of 2009, most U.S. citizens reentering the United States from Mexico must now havea passport, passport card, or other travel document approved by the U.S. Department of Homeland Security(visit www.GetYouHome.gov for more information on current travel requirements). This has likely led to adecline in U.S. crossers between the United States and Mexico in recent years. Another factor potentiallycontributing to a decline is concern over violence resulting from clashes between drug cartels and Mexicangovernment officials in some Mexican border towns. Numbers of drug and gang-related killings throughoutMexico have increased considerably in recent years. Violence has been much more prevalent in Mexican citiessharing borders with Texas and California (particularly Ciudad Juarez and Tijuana, respectively) than inthose bordering Arizona. However, Nogales, Sonora, which shares a border with neighboring Santa CruzCounty, Arizona, is specifically mentioned in the U.S. State Department’s most recent travel warning forMexico, which notes travelers should exercise caution in the city. Neither Agua Prieta nor Naco, which sharea border with Cochise County, was specifically referenced in the State Department’s travel warnings as ofearly 2013. CER focus groups in Bisbee and Douglas suggest border-related violent crime has not been amajor problem in those areas aside from a very small number of isolated incidents, but one very high profileincident in which a Douglas-area rancher was killed by suspected illegal crossers.

2007 2008 2009 2010 2011

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0

Note: Includes only those crossing from Mexico into the United States.Source: U.S. Customs and Border Protection.

US-MEXICO BORDER CROSSINGS:DOUGLAS, AZ

PASSENGERS PEDESTRIANSTOTAL◆

◆ ◆◆

◆◆


OverviewFort Huachuca is an active U.S. Army installation located in Sierra Vista. The fort provides critical

resources, infrastructure, and services to more than 50 unique tenant units and missions with national-levelrequirements, including three of the fastest-growing missions in the Department of Defense: unmannedaircraft systems (UAS) training and operations, military intelligence, and cyber-security. The main andauxiliary installation properties cover more than 100,000 acres and the fort manages 962 square miles ofrestricted air space and 2,575 square miles of electronic ranges outside installation boundaries. The fortmaintains, operates, or oversees more than 5.5 million square feet of operational facilities, 1,200 familyhousing units, three remote airstrips, and three accommodation schools. Libby Army Airfield with its 12,001foot concrete runway is the Army’s sixth busiest continental U.S. airfield with more than 350 days of goodflying weather per year and more than 150,000 manned and unmanned air operations annually.

As of September 2012, approximately 1,800 active duty military personnel, along with their familymembers, were assigned to the fort, with an additional 147 deployed from the fort to other locationsworldwide. There are also approximately 3,000 military trainees (students) temporarily assigned to the fortfor training on any given day, with more than 13,000 trained on site each year. The resident population ofFort Huachuca (those actually residing on post) was 7,084 as of January 2012, which included 1,079 militarypersonnel and 2,805 military family members residing in on-post family housing, along with 3,200unmarried or unaccompanied military personnel residing in troop billets, including students assignedtemporarily to the fort for training. Many military personnel and their families also reside in surroundingcommunities. The number of housing units on post is projected to decline from approximately 1,200 in 2010to 1,064 in 2014. This will result from the demolition of older housing units and the construction of fewerunits to replace them, which may lead to an increased demand for off-post housing in surroundingcommunities. Housing communities on post are constructed by private-sector firms as part of the Army’sprivatization efforts under its Residential Communities Initiative.

Fort Huachuca

Brown Parade FieldPhoto: Fort Huachuca Public Affairs Office


Economic ImpactCOCHISE COUNTY’S TOP EMPLOYER

Fort Huachuca is Cochise County’s largest employer according to the Cochise College Center forEconomic Research’s (CER’s) annual Top 75 Employer Survey. The fort has been the largest employer everyyear since the CER began conducting the survey in 1999. In 2012, the fort employed 9,369 fulltime equivalent(FTE) employees, which included active duty military personnel permanently assigned to the fort,Department of the Army civilian employees, part-time civilian workers directly employed by the fort, andmilitary students temporarily assigned to the fort for training. An FTE employee is equal to one fulltime ortwo part-time employees; for students temporarily assigned to the fort, the average number at any given timeare counted as FTE employees. Not included in the fort’s numbers are workers who report to work on FortHuachuca but are not employed directly by the fort. Those include employees of defense contracting firms,Fort Huachuca Accommodation Schools (although located on Fort Huachuca, these are Arizona publicschools that fall under the Arizona Department of Education), the Army and Air Force Exchange Service, theU.S. Post Office, colleges and universities, and concessionaires located on post.

THE MAGUIRE REPORTIn 2008, the Maguire Company released its Economic Impact of Arizona’s Principal Military Operations

report. The report estimated the direct, indirect, and induced impact of Fort Huachuca on Cochise Countyat $2.4 billion annually, nearly 42 percent of which was attributable to indirect and induced economic activityin the county’s retail trade and services industries. The employment impact was estimated at 26,921 jobscountywide, which include the fort’s direct employees, as well as those employed due to government contractsand spending by the fort and its employees. The report also estimated the fort generated $23.2 million peryear in local sales tax and $17.3 million in local property tax.

For more information on Fort Huachuca, visit www.army.mil/huachuca.


OverviewAgriculture is a significant part of the Cochise County economy. As of 2007, top crop items are forage

land, corn, pecans, and harvested vegetables. Top livestock are cattle and calves (mostly beef cows), layers,horses and ponies, goats, and bee colonies. Between 2002 and 2007, the number of farms in Cochise Countygrew by 12 percent. This was mostly the result of deconsolidation of farmland evidenced by a 15 percentdecline in total farm acreage. Cochise County saw an increase in the number of farms of all size classes except1,000 acres or more, which stabilized. Most of the growth occurred in smaller farms, particularly those 179acres or smaller. The number of farms with annual sales valuing less than $2,500 grew by 35 percent, whilethose with sales of $100,000 or more declined by 10 percent. The market value of agricultural products soldgrew by nearly 50 percent between 2002 and 2007; the market value of crops was up by a third while livestockwas up nearly 90 percent. Crops accounted for 63 percent of total sales in 2007 (down from 71.2 percent in2002).

AgritourismCochise County offers numerous agritourism opportunities, particularly in the Sulphur Springs Valley

area, including U-PICK Farms, wineries, and farmers markets. Annual agritourism events in Cochise Countyinclude the Willcox Wine Country Fall Festival and Vintage Bisbee, which feature local wines.Wineries/vineyards in Cochise County include Coronado Vineyards, Keeling-Schaefer Vineyards, andLawrence Dunham Vineyards. For more information, visit www.explorecochise.com orwww.willcoxchamber.com.

SIERRA VISTA FARMERS MARKETThe Sierra Vista Farmers Market operates two markets for local food growers and producers. Its goals are

to strengthen the local food economy and provide citizens with a local alternative to corporate and globalfood production. The markets offer locally produced fruits, vegetables, herbs, sprouts, microgreens, dried

Cochise County agriculture

Sierra Vista Food Co-op


beans, nuts, honey, meat, fish, eggs, baked goods, specialty products, plants and native trees, natural bodycare, locally roasted coffee, crafts, and entertainment by local musicians. For more information, visitwww.sierravistafarmersmarket.com.

COCHISE COUNTY FAIRThe Cochise County Fair is held each September at the Cochise County Fairgrounds just north of

Douglas, offering agricultural, commercial, educational, and entertainment activities, including a live rodeo.Exhibits include livestock, buildings, dogs, small stock, and horses. The carnival at the fair offers rides,attractions, games, and food booths. For more information, visit cochisecountyfair.org.

COCHISE COUNTY AGRICULTURE

2007 2002 CHANGE % CHANGE

Farms (number) 1,065 950 115 12.1%

Land in farms (acres) 824,226 969,253 -145,027 -15.0%

Land in farms - Average size of farm (acres) 774 1,020 -246 -24.1%

Estimated market value of land and buildings - Average per farm (dollars) $1,475,858 $704,895 770,963 109.4%

Estimated market value of land and buildings - Average per acre (dollars) $1,907 $631 1,276 202.2%

Estimated market value of all machinery and equipment - Average per farm (dollars) $77,792 $53,260 24,532 46.1%

Farms by size - 1 to 9 acres 122 110 12 10.9%





Farms by size - 1,000 acres or more 181 181 0 0.0%

Total cropland (farms) 496 557 -61 -11.0%

Total cropland (acres) 141,156 131,382 9,774 7.4%

Irrigated land (farms) 368 460 -92 -20.0%

Irrigated land (acres) 67,598 64,593 3,005 4.7%

Market value of agricultural products sold ($1,000) $117,130 $78,307 38,823 49.6%

Market value of agricultural products sold - Average per farm (dollars) $109,981 $82,429 27,552 33.4%

Market value of agricultural products sold - Crops ($1,000) $74,358 $55,737 18,621 33.4%

Market value of agricultural products sold - Livestock, poultry, and their products ($1,000) $42,771 $22,570 20,201 89.5%

Farms by value of sales - Less than $2,500 490 363 127 35.0%

Farms by value of sales - $2,500 to $4,999 119 97 22 22.7%

Farms by value of sales - $5,000 to $9,999 91 118 -27 -22.9%



Farms by value of sales - $50,000 to $99,999 50 59 -9 -15.3%

Farms by value of sales - $100,000 or more 108 120 -12 -10.0%

Source: U.S. Department of Agriculture and the Cochise College Center for Economic Research.


OverviewTourism and travel, which includes business and leisure, is an important component of the Sierra Vista

and Cochise County economy. As an export-oriented industry it brings dollars to the local area from otherregions, generating local sales, jobs, income, and tax revenue. According to a study conducted by DeanRunyon Associates for the Arizona Office of Tourism, the tourism and travel industry is one of the top twoexport industries in Arizona measured by its contribution to the state’s Gross Domestic Product. In CochiseCounty, tourism and travel includes military and Department of Defense civilian and contractor personnelon temporary duty to Fort Huachuca for training, attendance at conferences, or other military or defense-related activities, as well as other government travel unrelated to the fort. According to Dean RunyonAssociates, total travel-related spending in Cochise County was $329 million in 2011, down 1.6 percent from2010. Approximately 3,990 jobs, $77.1 million in direct earnings, and $11.4 million in direct localgovernment tax revenue were generated by travel-related spending in 2011.

Attractions and ActivitiesThe Sierra Vista area is home to attractions and activities that lure hundreds of thousands of visitors

annually, including the Cochise Cowboy Poetry and Music Gathering, Southwest Wings Nature Festival, andgroup tours and sites for specialty niches (e.g., birding and history) including Ramsey Canyon Preserve, SanPedro Riparian National Conservation Area, and Fort Huachuca’s National Historic Landmark District, all ofwhich attract national and international visitors; meetings and conferences for groups such as ArizonaFederation of Women’s Clubs and the Creative Writing Celebration, which attract hundreds of participants;and Fort Huachuca events, which contribute millions of dollars to the Sierra Vista economy each year. Otherattractions and destinations in the Sierra Vista area and Cochise County include Sierra Vista’s aquatic center(“The Cove”), Henry Hauser Museum, Arizona Folklore Preserve, Coronado National Forest and CoronadoNational Memorial, Lehner Mammoth Kill Site, Murray Springs Clovis Site, Kartchner Caverns State Park,the Amerind Foundation and Museum, John Slaughter Ranch, Whitewater Draw, Chiricahua Mountains andChiricahua National Monument, Cochise Stronghold, Texas Canyon, San Bernardino Wildlife Refuge, Fort

tourism and travel

Coronado Cave Photo: City of Sierra Vista


SIERRA VISTA VISITOR CENTER, VISITOR COUNTS

1ST QTR CHANGE 2ND QTR CHANGE 3RD QTR CHANGE 4TH QTR CHANGE ANNUAL CHANGE

2008 10,966 74.6% 6,031 50.9% 5,233 -14.5% 4,399 -25.3% 26,629 19.5%

2009 8,518 -22.3% 4,578 -24.1% 3,994 -23.7% 4,343 -1.3% 21,433 -19.5%

2010 9,442 10.8% 4,725 3.2% 3,023 -24.3% 3,480 -19.9% 20,670 -3.6%

2011 5,823 -38.3% 2,323 -50.8% 2,116 -30.0% 2,529 -27.3% 12,791 -38.1%

2012 3,646 -37.4% 2,294 -1.2% 1,833 -13.4% 1,701 -32.7% 9,474 -25.9%

Source: City of Sierra Vista and Cochise College Center for Economic Research.

Bowie National Historic Site, 16 public and private observatories, more than 15 Arizona wineries, the citiesof Bisbee and Tombstone, the ghost towns of Charleston and Dos Cabezas, and the Mexican cities of Nacoand Agua Prieta and Historic Arizpe in Sonora, Mexico, just south of the border.

The following events are held in Sierra Vista each year:

FEBRUARY: Cochise Cowboy Music & Poetry Gathering / High Desert Gardening & LandscapingConference / Hummingbird Stitchers Quilt Guild Show

MARCH: Cochise Community Creative Writing Celebration / Sierra Vista Symphony

APRIL: John Cooper & Perimeter Trail Tour / Men Who Cook / Festival of the Southwest / Goin’ tothe Dogs Show

JULY: Independence Day (July 4) festivities

AUGUST: Southwest Wings Birding & Nature Festival

SEPTEMBER: Elks Oktoberfest / City of Sierra Vista Oktoberfest / Dine under the Stars

OCTOBER: Art in the Park / Cars in the Park / Huachuca Gem, Mineral & Jewelry Show / BrownCanyon Ranch Open House

DECEMBER: Christmas Parade / Fort Huachuca Tour of Historic Officers’ Homes / Old World Santasin the Park

JANUARY THROUGH DECEMBER: Sierra Vista Farmers Market

For more information on attractions and activities in the Sierra Vista area, contact the Sierra Vista VisitorCenter at (520) 417-6960 / (800) 288-3861 or visit www.VisitSierraVista.com.

2008 2009 2010 2011 2012

27,00025,00023,00021,00019,00017,00015,00013,00015,00011,0009,000

Source: City of Sierra Vista and Cochise College Center for EconomicResearch.

SIERRA VISTA VISITOR CENTERVISITOR COUNTS

Based on data from 2008-2012. Source: City of Sierra Vista and CochiseCollege Center for Economic Research.

SIERRA VISTA VISITOR CENTER, VISITOR COUNTS, AVERAGE BY QUARTER

10,000

8,000

6,000

4,000

2,000

07,679 3,990 3,240 3,290

JAN-MAR APR-JUN JUL-SEP OCT-DEC


COCHISE COUNTY STATE PARKVISITATIONS

KARTCHNER CAVERNS TOMBSTONE COURTHOUSESTATE PARK STATE HISTORIC PARK

YEAR VISITATIONS CHANGE VISITATIONS CHANGE

2008 153,224 -4.2% 51,932 0.1%

2009 144,089 -6.0% 44,403 -14.5%

2010 123,999 -13.9% 49,825 12.2%

2011 116,757 -5.8% 46,037 -7.6%

2012* 117,496 18.7% 38,395 -2.4%

*January—October only; percent change based on same period one yearprior. Source: Arizona State Parks and Cochise College Center forEconomic Research.

Tourism Trends and Marketing in Sierra VistaAnnual visits to the Sierra Vista Visitor Center declined nearly 65 percent from 2008 through 2012.

According to the city’s director of Leisure and Library Services, the decline is due largely to expanded use oftechnology, particularly smart phones and tablets, by potential visitors to obtain information. While in-person visits have been down, traffic to the city’s visitor website increased nearly 30 percent in 2011 andstabilized at that level in 2012. In response, the city has expanded its use of digital and social media tosupplement print, radio, and television efforts.

According to the Sierra Vista Visitor Center, bird watching continues to be extremely popular and amultimillion-dollar activity. In 2012, 43,328 bird-watching brochures were downloaded from the city’s visitorwebsite—up 75 percent from the year prior. According to the visitor center, Sierra Vista and surroundingareas are one of the top birding destinations in the nation, and a large share of the city’s visitor base consistsof birders and other geotourists. While continuing to target geotourists and history enthusiasts with strategicadvertisements and features on the city’s website, in 2012 the city expanded its marketing efforts in theTucson and Phoenix markets for travelers interested in day or weekend trips. Additionally, two emergingmarkets identified by the city are star-gazing and exploring Arizona’s wine county (Cochise and Santa CruzCounties). Besides its own marketing efforts, Sierra Vista is an active partner in the Cochise County TourismCouncil, whose marketing efforts promote Cochise County as a region (for more information, visitwww.ExploreCochise.com).

Cochise County and Sierra Vista LodgingIn 2012, according to Arizona Office of Tourism (AOT), Cochise County’s lodging occupancy rate

decreased 9.2 percent, dropping from 53.3 to 48.4 percent. The county’s lodging occupancy rate for 2012 wasbelow the statewide rate of 57.5 percent and the nationwide rate of 61.4 percent. The average daily room ratein Cochise County decreased by 0.6 percent from $69.11 to $68.72 in 2012. Revenue generated per availableroom was down 9.7 percent from $36.86 to $33.29. Lodging room demand was down 9.2 percent and supplywas down by less than one-tenth of a percent in 2012.

COCHISE COUNTY NATIONAL PARK VISITATIONS

CHIRICAHUA NATIONAL CORONADO NATIONAL FORT BOWIE NATIONALMONUMENT MEMORIAL HISTORIC SITE

YEAR VISITATIONS CHANGE VISITATIONS CHANGE VISITATIONS CHANGE

2008 56,557 -3.2% 91,028 27.0% 10,095 0.7%

2009 60,846 7.6% 103,811 14.0% 9,641 -4.5%

2010 55,430 -8.9% 136,281 31.3% 9,491 -1.6%

2011 37,030 -33.2% 153,040 12.3% 8,429 -11.2%

2012 41,159 11.2% 97,579 -36.2 7,966 -5.5%Source: Arizona Office of Tourism and Cochise College Center for Economic Research.


There are approximately 1,780 lodging rooms in the Sierra Vista area, according to the Sierra Vista VisitorCenter. In 2012, the average daily room rate declined to $70 per night, down from $79.11 in 2011. The SierraVista Visitor Center did not track occupancy rate in 2012 but opined the rate dropped in line with declinesseen at the county level.

COCHISE COUNTY TRAVEL IMPACTS

2007 2008 2009 2010 2011

TOTAL DIRECT TRAVEL SPENDING ($MILLION)Visitor Spending at Destination 350.9 350.0 329.9 334.4 329.0Other Travel* 0.9 1.0 1.2 1.3 1.4

Total Direct Spending 351.8 351.0 331.1 335.7 330.4VISITOR SPENDING BY TYPE OF TRAVELER ACCOMMODATION ($MILLION)Hotel, Motel 106.1 110.0 97.6 113.3 107.4Campground 52.5 52.0 46.3 44.9 44.8Private Home 67.2 63.1 58.8 61.2 64.8Vacation Home 7.0 7.3 7.0 7.3 7.8Day Travel 118.0 117.6 120.2 107.7 104.1

Spending at Destination 350.9 350.0 329.9 334.4 329.0VISITOR SPENDING BY COMMODITY PURCHASED ($MILLION)Lodging 49.0 50.8 46.0 50.8 46.5Food & Beverage Services 81.1 80.0 80.1 81.9 79.2Food Stores 58.9 59.2 64.7 53.9 50.1Ground Tran. & Motor Fuel 53.7 55.8 36.8 45.8 56.0Arts, Entertainment & Recreation 43.8 41.9 39.9 40.6 39.0Retail Sales 64.3 62.4 62.6 61.3 58.2

Spending at Destination 350.9 350.0 329.9 334.4 329.0INDUSTRY EARNINGS GENERATED BY TRAVEL SPENDING ($MILLION)Accommodation & Food Services 41.6 43.7 43.2 43.3 41.9Arts, Entertainment & Recreation 20.2 20.3 19.3 19.3 18.1Retail** 18.6 19.5 18.1 16.7 15.7Auto Rental & other ground tran. 0.3 0.3 0.3 0.3 0.3Other Travel* 0.7 0.7 0.9 1.0 1.1

Total Direct Earnings 81.4 84.6 81.7 80.6 77.1INDUSTRY EMPLOYMENT GENERATED BY TRAVEL SPENDING (JOBS)Accommodation & Food Services 2,270 2,280 2,210 2,190 2,050Arts, Entertainment & Recreation 1,380 1,410 1,330 1,340 1,290Retail** 800 810 730 670 630Auto Rental & other ground tran. 10 10 10 10 10Other Travel* 20 20 20 20 20

Total Direct Employment 4,480 4,530 4,290 4,230 3,990GOVERNMENT REVENUE GENERATED BY TRAVEL SPENDING ($MILLION)***Local 11.8 11.7 11.5 11.9 11.4State 12.8 12.5 12.1 12.8 13.2

Total Direct Gov't. Revenue 24.6 24.3 23.6 24.7 24.6Note: 2011 data are preliminary. Details may not add to totals due to rounding. *Other Travel includes residentair travel and travel arrangement. **Retail includes gasoline. ***Property taxes and sales tax payment of travelindustry employees not included. Source: Dean Runyon Associates and Arizona Office of Tourism.


Renewable Energy IncentivesSulphur Springs Valley Electric Cooperative

(SSVEC), which provides electrical service to SierraVista and other areas of the county and state, offersseveral incentives to promote the use of alternativeenergy. Customers may also qualify for federal andstate tax credits. For detailed and up-to-dateinformation on renewable energy incentives in theSSVEC service area, visit www.ssvec.org.

RESIDENTIAL AND SMALL COMMERCIAL(UNDER 10 KW) REBATE PROGRAM

This program provides incentives for the installa-tion of qualifying renewable energy programs (solar,wind, and biomass). SSVEC provides incentives of $2per installed watt or up to 40 percent of the totalinstalled cost of the system, whichever is less.Individuals interested in forfeiting the rebate can qual-ify for a performance based incentive (PBI) over a peri-od of 10, 15, or 20 years up to 50 percent of the system’scost. Funding is limited; members must contactSSVEC prior to construction to ensure availability.

LARGE COMMERCIAL (OVER 10 KW) PROGRAMSContact the SSVEC Commercial Representative

at (520) 515-3472 for program guidelines.

NEW HOME BUILDERS PROGRAMSSVEC offers homebuilders a $1,500 incentive

for 2kW or larger systems. This rebate is in additionto the residential and commercial rebate programand is payable only to the builder.

RESIDENTIAL AND SMALL BUSINESS LOAN PROGRAM

SSVEC members may borrow $2 per watt up toa maximum of 25 percent of the total cost of therenewable energy project at an interest rate of 3percent. The loan is secured by a lien on the house orproperty and is repaid in equal monthly installmentsover 5 years for loans under $10,000 and 10 years forloans over $10,000, with no prepayment penalty.There is a cap on loan amounts of $8,000 forresidential systems and $20,000 for small businesssystems. Funding is limited and available on a firstcome, first served basis.

SOLAR WATER HEATERSSolar water heaters are eligible for a rebate of

$0.75 per kWh of the first year savings as determinedby the Solar Rating and Certification Corporation(www.solar-rating.org).

renewable energy

In early 2011, Fort Huachuca began the installation of a $2.8 million, 300-foot Nordic Windpower wind turbinePhoto: Fort Huachuca Public Affairs Office


CITY OF SIERRA VISTA1011 N. Coronado Drive, Sierra Vista, AZ 85635City Hall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-3315Website . . . . . . . . . . . . . . . . . . . . . . . . . www.SierraVistaAZ.gov

SIERRA VISTA VISITORS CENTER3020 E. Tacoma Street, Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . (520) 417-6960 / (800) 288-3861Website . . . . . . . . . . . . . . . . . . . . . . . www.VisitSierraVista.com

SIERRA VISTA AREA CHAMBER OF COMMERCE21 E. Wilcox Drive, Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-6940Website . . . . . . . . . . . . . . . . . . . . . www.sierravistachamber.org

SIERRA VISTA ECONOMIC DEVELOPMENT FOUNDATION750 E. Bartow Dr., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-6948Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.svedf.org

SIERRA VISTA INDUSTRIAL DEVELOPMENT AUTHORITYFrank T. Moro1700 S. Hwy 92, Sierra Vista, AZ 85636Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-1666Website. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fwpc.net

community resources

SMALL BUSINESS DEVELOPMENT CENTER AT COCHISE COLLEGE901 North Colombo Ave., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 515-5478Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.cochise.edu

SOUTHEAST ARIZONA ASSOCIATION OF REALTORS125 S. Second Street, Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-7802Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . seazrealtor.com

COCHISE COUNTY1415 Melody Lane, Bisbee, AZ 85603Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 432-9200Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.cochise.az.gov

ARIZONA DEPARTMENT OF ECONOMICSECURITY / SOUTHEAST ARIZONAWORKFORCE CONNECTION1843 Paseo San Luis, Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-9309Website . . . . . . . . . . www.azdes.gov / www.seazworkforce.org

FORT HUACHUCATelephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 533-2752Website . . . . . . . . . . . . . . . . . . . . . . . . www.army.mil/huachuca

Sierra Vista Public Library


FINANCIAL INSTITUTIONS

AMERICAN SOUTHWEST CREDIT UNION3090 E. Fry Blvd., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 459-1860Website . . . . . . . . . . . . . . . . . . . www.americansouthwestcu.org

ARMED FORCES BANK52035 Arizona St., P.O. Box 12778, Fort Huachuca, AZ 85670Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 452-8630Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.afbank.com

BANK OF AMERICA3148 E. Fry Blvd., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-1441Website . . . . . . . . . . . . . . . . . . . . . . . . www.bankofamerica.com

BBVA COMPASS BANK211 S. Carmichael Ave., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-1088Website . . . . . . . . . . . . . . . . . . . . . . . . . www.bbvacompass.com

CHASE3932 E. Fry Blvd., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 459-1235Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.chase.com

NATIONAL BANK OF ARIZONA1160 E. Fry Blvd., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 439-5469Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nbarizona.com

WELLS FARGO BANK50 E. Fry Blvd., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 459-8489Website . . . . . . . . . . . . . . . . . . . . . . . . . . . www.wellsfargo.com

UTILITIES

ARIZONA WATER COMPANY77 Calle Portal, Ste. B-120, Sierra Vista, AZ 85635 Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-5660Website. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.azwater.com

CENTURYLINKWebsite . . . . . . . . . . . . . . . . . . . . . . . . . . . www.centurylink.com

COX COMMUNICATIONS150 E. Wilcox Dr., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-4705Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.cox.com

LIBERTY UTILITIES4055 E. Campus Dr., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-5470Website . . . . . . . . . . . . . . . . . . . . . . . . . . www.libertywater.com

PUEBLO DEL SOL WATER COMPANY4226 Avenida Cochise, Ste. 13, Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-3742Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.pdsh2o.com

SOUTHWEST GAS202 E. Wilcox Dr., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 459-1702Website. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.swgas.com

SULPHUR SPRINGS VALLEY ELECTRICCOOPERATIVE311 E. Wilcox Dr., Sierra Vista, AZ 85635Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (520) 458-4691Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ssvec.org


The Cochise College Center for Economic Research (CER), founded in 1995, provides economicinformation, analysis, and forecasting to help leaders in the public, private, and nonprofit sectors makeinformed decisions; provides opportunities for Cochise College students to conduct and publish research onlocal and regional economic issues; and educates residents of Cochise County on the local, state, and nationaleconomy through public presentations, newspaper columns, radio show appearances, and social medianetworking. The CER hosts economic outlook luncheons each year in Benson, Bisbee, Douglas, and SierraVista. The center also produces four major publications annually as part of its Cochise County EconomicOutlook Publication Series: Benson Economic Outlook, Bisbee Economic Outlook, Douglas Economic Outlook,and Sierra Vista Economic Outlook.

Throughout the year, the CER responds to a wide range of information requests from business andcommunity leaders throughout Cochise County and across the state and region. The CER director serves oncommunity projects, committees, and task forces providing technical expertise in research methodology andserving as a source of economic and demographic information, analysis, and forecasting. As an extension ofCochise College’s educational mission, the CER prepares weekly press releases that are published innewspapers countywide and provide insight into economic issues affecting Cochise County. The CERmaintains an official Facebook page providing updates on the local, state, and national economies.

The CER has economic advisory committees in Benson, Bisbee, Douglas, and Sierra Vista. Thesecommittees include representatives from various sectors of the local economy who provide advice, expertise,and input to the content of the economic outlook publications and luncheon presentations. They also serveas focus groups for the study of the qualitative aspects of the local economy and provide specialized expertiserelated to the organizations and industries they represent.

The CER is a member of the Association for University Business and Economic Research (AUBER), one ofonly two community college organizations in the nation holding membership. In addition, the CER is a statedata center affiliate, receiving and disseminating U.S. Census Bureau data to local governments andnongovernmental data users at no charge or on a cost-recovery or reimbursable basis. The CER is charged withraising its own operating budget through sponsorships, gifts, donations, sponsored research, and other sources.

about the Center for Economic Research

The CER hosts economic outlook luncheons each year throughout Cochise County


Dr. Robert Carreira has served as director of the CER since 2005. He holds a doctor of philosophy degreein public policy, and master’s degrees in public administration, education, and international relations(international political economics).

Contact the CERCenter for Economic Research

Cochise College901 North Colombo Avenue

Sierra Vista, AZ 85635Phone: (520) 515-5486Fax: (520) 515-5343

E-mail: [email protected]

Center StaffDr. Robert Carreira – Director

Iris Routhieaux – Information Specialist Rebecca M. Horlick – Office Assistant

Sierra Vista Economic Advisory CommitteeAmanda Baillie—Sierra Vista Area Chamber of Commerce

Rick Coffman—Castle & Cooke, ArizonaKay Daggett—City of Sierra Vista

Frank Gonzalez—Lawley Automotive GroupAngelica Hernandez—Southeast Arizona Workforce Connection

Mignonne Hollis—Sierra Vista Economic Development FoundationMary Jacobs—City of Sierra Vista

Angela Camera—Fort Huachuca Public AffairsFrank Moro—First West Properties Corporation

Tom Reardon—Sierra Vista City CouncilMark Schmitt—Cochise College Small Business Development Center

Victoria Yarbrough—City of Sierra Vista


sierra vista economic outlook 2013

Documents

sierra vista city manager

licensessierra vista

economic research3

e g e p r i n t s e

s e c o

sierra vistacochise

economic climate change

c e skeith ringey