inside tucson business 08/10/12

Your Weekly Business Journal for the Tucson Metro Area

WWW.INSIDETUCSONBUSINESS.COM • AUGUST 10, 2012 • VOL. 21, NO. 63 • $1

WATER WAR

PAGE 5

Marana sees control of wastewater as

key to future

Luke AFB offi cials already pushing for more F-35s By Meghan McCarthyCronkite News Service

Along with three squadrons — a total of 72 F-35 jet fi ghters — offi cials at and near Luke Air Force Base in Glendale are cele-brating the millions of dollars in construc-tion projects that will be coming its way and the potential of thousands of jobs.

But that’s not all, even before the fi rst three squadrons arrive as early as the end of next year, offi cials already are trying drum to up support for more of the fi fth-generation fi ghter jets as F-16s are retired. Th e Air Force calls the F-35 the “premier strike aircraft through the fi rst half of the 21st century.”

Th e Pentagon’s announcement this month that Luke will be the initial pilot training facility means it won out over the Arizona Air National Guard’s 162nd Fighter Winter at Tucson International Airport and sites in New Mexico and Idaho.

Tucson Mayor Jonathan Rothschild’s offi ce acknowledged, “Luke has been the military’s preferred choice for the fi rst 72 aircraft since 2010. It is our understanding that decisions on the next phase won’t hap-pen until December 2014. At that time, we expect that Tucson will receive consider-ation as a secondary location.”

Th e decision capped a nearly three-year process that included environmental im-pact studies on air quality, noise, land use

and socioeconomic issues on the locations in contention. Luke had been the “preferred location” for two years and the Pentagon, in a June environmental report, again called the base its top choice.

Th e fi ghters are expected to arrive at Luke between late 2013 and mid-2014, the Air Force said, but construction on the base to prepare for them should start “almost im-mediately.”

Th e mission is expected to bring an eco-nomic boost to the Phoenix area as the gov-ernment invests up to $125 million on con-struction-related projects, according to Luke Forward, an organization that promotes the base. It said the F-35s arrival is estimated to create nearly 3,000 construction jobs.

Special ReportA mid-year look at Tucson’s commercial real estate market

3

Tucson Medical Center’s new West Pavilion, set to open next April.

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2 AUGUST 10, 2012 INSIDE TUCSON BUSINESS

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AUGUST 10, 2012 3InsideTucsonBusiness.com

Public Notices 8People in Action 7 Meals and Entertainment 9 Arts and Culture 9 Inside Media 10 Briefs 11 Profile 13

Lists 22-25 Finance 26 Real Estate &Construction 27Biz Buzz 28Editorial 28Classifieds 31

EDITION INDEX

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Commercial real estate at mid-year Jan. 8, 2011 shooter will go to prison for life

Jared Lee Loughner, 23, will spend the rest of his life in prison but avoided the death penalty, after pleading guilty to 19 counts against him for a shooting rampage that took place Jan. 8, 2011, at a northwest side shopping center in which six people were killed and 13 others, including then-Rep. Gabrielle Giff ords, were wounded.

Th e plea agreement was entered in fed-eral court Tuesday. Last year, Loughner had pleaded not guilty but since then he has been forcibly medicated by authorities for schizophrenia.

In court, U.S. District Judge Larry Burns said Loughner was “a diff erent person in his appearance and his aff ect than the fi rst time I laid eyes on him.”

Th e 19 counts included attempted assas-sination of a member of Congress, murder and attempted murder of federal employ-ees, and causing death and injury at a feder-ally provided activity.

As part of the agreement, the federal gov-ernment dropped 30 other counts.

Loughner’s sentencing is scheduled for Nov. 15. He is ineligible for parole.

Open elections backersappeal to Supreme Court

Supporters of an initiative to change Ari-zona elections to what’s called “open elec-tions” or a “top two” primary system have gone to the state Supreme Court to try to overturn a lower court ruling this week that knocks their proposal off the November bal-lot.

Th e Open Government Committee on Tuesday asked the state’s high court for ex-pedited consideration. Justice John Peland-er set today (Aug. 10) as the deadline for parties to fi le briefs and Tuesday as the deadline to fi le responses.

Th e committee hopes the Supreme Court will overturn an injunction issued Monday by Maricopa County Superior Court Judge Mark Brain, who ruled the initiative violated the separate amendment rule in the Arizona Constitution.

Th e proposal would have all candidates running for state-wide offi ces run on the same ballot in the primary, regardless of po-litical party. Th e top two vote getters would then go on to the general election.

Th is week, Inside Tucson Business takes its semi-annual review of the commercial real estate market in the Tucson region.

In these articles on the retail, industrial, offi ce and multi-family real estate markets, a growing number of industry experts are beginning to show some pent-up optimism, to coin a phrase, that commercial real estate will see marked improvement next year.

All signs indicate the market is fi nally off the bottom and showing slight, slow, incre-mental increases.

Th e mid-year update begins with a look at the multi-housing market on this page and continues starting on page 11.

Apartment market is hot!By Roger YohemInside Tucson Business

So what if there’s a fl urry of new apartment construction? By De-cember, will it really matter that the vacancy rate rose from 9 percent in the fi rst quarter to 10.1 percent at the mid-year point?

In recent months, the construction of fl ashy new state-of-the-art, ameni-ty-rich, multi-family housing projects have been turning heads.

“Apartments are very hot. Th ere’s a shortage of certain-type inventory,” said Allan Mendelsberg, investment specialist with Picor Commercial Real Estate Services.

In anticipation of the rush, apart-ment developers bought over $8 million of land last year, according to Jim Marian, a partner in Chapman Lindsey Commercial Real Estate. Th e largest deal was $4.15 million to develop Th e District on Fifth, 248 E. Fifth Street. Th e second-biggest purchase was by HSL Properties for $3.8 million in Marana’s Dove Mountain for 272 new units on 20 acres.

Th e District on Fifth opens this month and all 750 beds were leased long before it was completed. By this time next year, a surge of some 2,000 new units are projected and that will change the dynamics of student

housing around the University of Arizona campus.

A 14-story complex at 1020 N. Tyndall Av-enue is in the works for just under 600 stu-dents. Near campus, plans call for a 198-bed complex at 504

E. Ninth Street. Also in progress is Th e Re-treat at 22nd Street and Park Avenue, for 183 students in cottage-style luxury units.

Downtown at 350 E. Congress, student housing for 300 is being planned by Oa-sis Tucson. In anticipation of the modern streetcar, several other niche apartment projects are in various stages of develop-ment and planning.

For existing properties, the volume of sales has spiked this year (see BizFacts). And only three acquisitions were consid-ered “distress sales.”

“Investor interest has picked up sig-nifi cantly since 2011 as Tucson is back on the radar screen. We are seeing out-of-state investors returning to the market-place and with investors coming from the Phoenix area,” Mendelsberg said. “Th e gap is narrowing between buyer and sell-er expectations, and the low cost of debt is making more transactions possible.”

Going forward, all the stars seem to have aligned just right for the market. Th ree major areas have been addressed: the glut of foreclosures; the shortage of student housing; and the need for high-end luxury product.

“Lots of families that were doubling up are starting to separate and we’re hearing there is less packing of fi ve and six people in one-bedroom apartments. Multi-fam-ily is a very positive story in Tucson com-mercial real estate,” said Mendelsberg.

Contact reporter Roger Yohem at

[email protected] (520) 295-4254.

The long-vacant Vista Sierra Apartments, 2002 E. Ft. Lowell, are being redeveloped as market-rate units by Town West Realty. The 78-unit complex, renamed Casa Presidio, is to open this year.

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BIZ FACTS

Retail Sector 2nd Quarter Update• Vacancy rate9% at 2012 1Q10.1% at 2012 2Q

• Sales volume1st half 2012: $86.4 millionAll of 2011: $66.1 million

• Price per unit1st half 2012: $41,1782nd half 2011: $28,4171st half 2011: $18,700

•Price per square foot1st half 2012: $56.882nd half 2011: $41.321st half 2011: $29.61

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Airline survey shows where to goBy David Hatfi eldInside Tucson Business

Th e gauntlet has been thrown down. Ac-cording to an air travel survey of businesses in the Tucson region, the biggest opportunities are:

• More airline service to the Los Angeles area via alternative airports, such as Orange County’s John Wayne Airport and, possibly others.

• Additional fl ights to San Francisco.• Nonstop fl ights to Washington, D.C., and

New York.Jamie Kogutek, an air service strategy and

development consultant with Sixel Consulting Group hired by the Tucson Airport Authority (TAA), revealed the opportunities as part of his report Wednesday on the results of the survey conducted in June. It had 512 respondents rep-resenting 77,000 employees and more than 100,000 business trips annually.

Th e results were revealed before about 75 business leaders at the Doubletree Hotel at Reid Park.

Although it wasn’t a specifi c question in the survey, Kogutek said a signifi cant number of re-spondents got more specifi c than just saying Los Angeles. He noted that according 2011 U.S. Department of Transportation data, 79 percent of passengers going to the Los Angeles Basin from Tucson International Airport go to LAX compared to 36 percent from Phoenix Sky Har-bor International Airport. Th e second most popular destination is Orange County’s John Wayne Airport, which was used by 27 percent of

Phoenix passengers but just 10 percent of Tuc-son passengers.

“Th at’s obviously a function of the fact LAX is the only airport served non-stop from Tucson and there aren’t a lot of places along the way to make connections,” Kogutek said.

But he cautioned the audience that if an air-line should begin service to Orange County it will need the support of Tucsonans and that may be diffi cult.

“Th ey may start with just one fl ight a day and the times may not be conducive to making a day-trip,” he said, adding that passengers tend

NEWSNew D-M commander set to take over today

Col. Kevin Blanchard is scheduled to as-sume command of Davis-Monthan Air Force Base in ceremonies set for 9 a.m. to-day (Aug. 10).

Blanchard comes to Davis-Monthan and the 355th Fighter Wing from a one-year as-signment as the vice commander of the 451st Air Expeditionary Wing at Kandahar Airfi eld, Afghanistan. He succeeds Col. John Cherrey who departed in June for an assign-ment at the Pentagon.

After falling for 17 weeks,Tucson gas prices bump up

After 17 weeks of declines, gas prices in the Tucson region may have hit bottom and bounced up this week, according to AAA Arizona’s Fuel Gauge survey.

Th e average price for regular fell to $3.15 per gallon early in the week but by mid-week was at $3.17½ per gallon, about a half-cent per gallon higher than where it was a week ago. As is usually the case, the Tucson aver-age was the lowest in Arizona, where the state-wide average this week was $3.31 per gallon, up from $3.29 per gallon a week ago.

Licenses issued formarijuana dispensaries

Using a bingo machine for its random drawing process, the Arizona Department of Health Services on Tuesday (Aug. 7) is-sued 97 licenses for medical marijuana dis-pensaries across the state, including 16 de-fi ned districts in the Tucson region.

Th e drawing took four hours to select from among 404 applicants in 68 dispensary districts as established by voters in a law that was passed in November 2010. Th e re-maining 29 licenses were issued in districts where there was only one applicant.

Th e names of the winning applicants and their districts were not revealed by the De-partment of Health Services.

Health Services Director Will Humble said some dispensaries could open within a few weeks but others could take until next spring to become operational.

Also on Tuesday, state Attorney General Tom Horne issued a legal opinion saying that despite voter approval, the medical marijuana initiative is preempted in part by federal law. Horne said he would not try to stop the issuing of dispensary licenses.

Th e licenses were issued by geographic districts. In the Tucson region, 10 applicants fi led for Catalina; nine were fi led for Central Tucson; eight for southwest Tucson, fi ve for east central Tucson; four each for northeast Tucson, north central Tucson and Tanque Verde; three each for east Tucson and south-east Tucson; two for Continental; and one each for Marana and northwest Tucson. No applications were received for dispensaries in west Tucson, Green Valley or the San Xavier or Pascua Yaqui districts.

Business Travelers Need Nationwide Access

Businesses asked to step upDue to federal regulations, the Tuc-

son Airport Authority is restricted in their eff orts to entice airlines to improve air service at Tucson International Air-port, although it has instituted an incen-tive program to reduce landing fees and help with marketing to any airline that commits to adding and maintaining new service targeted destinations for at least a year.

A Business Roundtable has been es-tablished to work on other ideas that could induce airlines to add service. To be a part of that group, business leaders are asked to contact Michael Guymon, vice president of regional development at Tucson Regional Economic Opportu-nities, at [email protected].

to be more fl exible on cross-country travel to Washington or New York.

And while business travelers rank Washing-ton and New York as high-priority destinations, the two destinations don’t rank as high among all air travelers. Th at puts a greater onus on businesses to support those nonstop fl ights if they were to materialize, Kogutek said.

It turns out passenger relationships with air-lines — frequent fl ier programs and such — plays a factor in getting to the San Francisco area.

Although United Airlines is the only airline off ering non-stop fl ights to San Francisco as well as connecting fl ights to other Bay Area air-ports, more Tucson business travelers choose to fl y on either American or Southwest airlines.

Kogutek said United remains the most likely airline to improve air service to San Francisco, partly because it has a hub there. Th e challenge for Tucson will be making it more successful fl y-ing the route.

According to the survey, 63 percent of busi-nesses do not have a policy requiring booking the lowest airfare and that 79 percent of busi-nesses consider the entire cost of travel, includ-ing gasoline, parking and time away from work, in booking air travel.

Despite this, the cost of travel and airfares ranked as the top reason given for a company’s choice for air travel.

Contact reproter David Hatfi eld at

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


NEWS

Water wars: Marana’s future lies in control over sewer systemBy Patrick McNamaraInside Tucson Business

At fi rst glance, the hard-fought battle between Marana and Pima County for lasting control over an obscure wastewater treatment facility appears absurd: Two governments fi ghting over sewerage.

But underneath the fetid surface lies, for one of the litigants, the potential to solidify or dash its designs for growth and future prosperity.

“Water resources drive our ability to at-tract businesses and people to live here,” said Marana Town Manager Gilbert David-son. “We have a large number of areas we want to see developed (through) managed growth, and to do that we need water.”

Marana, population 35,000, has been locked in legal battle with the county for control of the small wastewater treatment facility at 14393 N. Luckett Road since 2007. Th e plant has modest capacity to treat 700,000 gallons per day but without control of the facility, Marana has limited options to secure an assured water supply.

Th e Arizona Department of Water Re-sources requires that any new development in the fi ve active management areas — those within the urban corridor of Maricopa, Pi-nal, Pima and Santa Cruz counties — secure a 100-year supply of water to support the population. If that assured supply isn’t available, developers can’t sell lots to be de-veloped.

A key to achieving an assured water sup-ply lies in effl uent.

“By controlling effl uent, Marana can ex-pand its water supply,” said Robert Glen-non, Morris K. Udall professor of law and public policy in the Rogers College of Law at the University of Arizona. Glennon also has written numerous articles and books on wa-ter policy, including “Unquenchable: Amer-ica’s Water Crisis and What to do About it,” in 2011.

By using effl uent, or treated wastewater, water providers can off set their groundwa-ter pumping.

In a quest for an effl uent supply, Marana sought, and tentatively has achieved, its goal of guaranteeing future water supplies by wresting control of the treatment facility from Pima County.

But the town’s ownership of the facility faces an uncertain future as the continuing court battle has shown.

Despite exercising its right under state law to acquire ownership of the plant, the courts have now said Marana does not have the right to operate a wastewater treatment system.

Th e town could go to its voters and ask them to approve its plans to become a

wastewater service provider. In the meantime, however, the Arizona

Department of Environmental Quality de-cided not to transfer the requisite permits Marana needs to operate the treatment fa-cility. Instead, the town operates the 1,800-connection facility on a provisional basis.

If Marana can’t get support of the resi-dents, it could fi nd itself back at square one in terms of securing its fresh water supply.

A few options remain, however. “Even a municipality without a CAP

(Central Arizona Project) allotment can grow by joining the Central Arizona Ground-water Replenishment District,” said Chris Avery, chief water council with the Tucson City Attorney’s Offi ce.

Th e Central Arizona Groundwater Replen-ishment District (CAGRD) replenishes groundwater reservoirs with CAP water. Mem-bers, which includes water providers, housing developments and local governments, earn credits for their groundwater usage.

Th at’s an option that Pima County Ad-ministrator said Marana needs to further explore.

“Th ey could completely solve all their fu-ture growth issues by making new growth become members of CAGRD,” Huckelberry said.

Davidson said that’s not a fail-safe for the town.

“We can use that as a backstop,” Davidson

This Week’s Good News Connect jobs with Pima

students Prospective employers have a new way

to connect online with Pima Community College students. It’s called MyCareerLink and can be accessed through the MyPima protal at www.pima.edu.

Th rough it employers can list informa-tion accessible to Pima College students for dozens of opportunities, ranging from Ap-plication Developer to X-ray Technician.

At the same time, students can upload and store their résumés, cover letters and other documents.

Employers can fi nd more information about MyCareerLink at Pima College’s Stu-dent Recruitment and Internships webpage, www.pima.edu/business-industry/recruit-ment-internships/index.html.

The Tucson

INSIDERInsights and trends on developing andongoing Tucson regional business news.

A matter of attitude It all makes sense now for one small business

owner along East Broadway near Swan Road who recalls getting an indignant phone call from a Tucson city offi cial earlier this year notifying him that the city wasn’t getting their share of his sales tax receipts. After spending time huddling with his accountants they fi gured out the busi-ness was paying the proper amount.

It turns out, though, the business wasn’t coding his fi lings to include money that should have gone to the Rio Nuevo tax increment fi -nancing district. Th e businessman tells insider that at fi rst the city offi cial tried to put the onus on him but he fought back, telling the city, “If you’re not getting your share of money from the state, that’s you’re problem with the state, not me.”

Th e city offi cial relented but asked the ac-countant to start putting the proper code on the forms. A problem that might have been avoided in the fi rst place had the business owner been told about the code in 2004 when he opened.

Twitter password, please Social media continues to test the bounds of

employee-employer matters. As part of what they do at the Arizona Daily Star, re-porters tweet about items they’re covering and sometimes other matters. But are those reporters’ Twitter accounts personal or business? Th e Star thinks they’re business. Specifi cally their business. About two dozen reporters have received emails requesting they turn over their Twitter account pass-words. It must be so their writing can be properly edited for grammatical errors.

A worker on contract from the Arizona Department of Corrections cleans scum from the water’s surface at the Marana’s wastewater treatment facility.

WATER PAGE 6

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said. But the option also poses problems be-cause water through the CAGRD has a higher cost than groundwater or CAP water. Addi-tionally, the price per acre-foot of water isn’t set, and likely will continue to rise.

Davidson said the town through its mem-bership in the district pays $474 per acre-foot but anticipates the cost will rise to more than $600 per acre-foot in fi ve years time.

An acre-foot equates to the annual water usage of a four-person household, about 326,000 gallons.

Plus, the supply of that water is subject to fl ows of the Colorado River, which has claims on it not only from the CAP in Arizo-na but from Nevada and Southern Califor-nia as well.

“Th at’s not a guaranteed supply,” David-son said, noting that the town has slated the northern areas of the town for thousands of residential units and much commercial de-velopment.

Th at leaves effl uent as the town’s best option for future growth and guaranteed water supplies.

Pima County, which until January oper-ated the Marana wastewater facility, has said it’s happy to provide the town with up to 90 percent of the effl uent the facility produces.

“Apparently, that wasn’t good enough for them,” said Pima County Administrator Chuck Huckelberry.

Dating to at least 2004, the county has of-fered effl uent to Marana on the condition that it be used for irrigation at parks and other public spaces that currently use groundwater.

According to Huckelberry, that option would be more cost eff ective to Marana res-idents as well.

He said the town would have gotten about 256 acre-feet of effl uent per year without cost, instead of paying $2 million annually to operate a facility that produces the effl uent.

“Th ey’re not legitimate off ers,” Davidson counters. “Th ey can’t give an infi nite agree-ment, the agreements can be cancelled.”

Davidson said such an agreement would leave Marana at risk of not having a guaran-teed water supply and put the town at the future whims of county leadership. He and other town leaders have in the past claimed the county has thwarted Marana’s growth plans through sophisticated bureaucratic machinations.

For instance, Davidson told an Arizona Senate committee in 2011 that Pima County refused to connect a proposed hospital in Marana to the regional wastewater system.

Huckelberry denies that, saying the de-veloper of the proposal chose not to con-struct the pipeline connecting to the main sewer lines and abandoned the plans.

“We have never turned down a single permit for construction in Marana that was ready to connect to the treatment plant,” Huckelberry said.

Huckelberry also said the cost to Marana residents for wastewater service would in-crease under a town-run system because they won’t have the economies of scale that exists for the county. County estimates show Mara-na residents would pay $95 per month com-pared to $37.50 that county ratepayers pay.

Such disputes aside, Marana almost cer-tainly has to acquire additional water by some means.

Davidson said the town intends to con-tinue to pursue the wastewater option to secure the town’s water and growth futures.

“If we want to attract good residential and good commercial development, we have to be serious about the cost of utilities,” he said. “Th e cost today to get into the wastewater business seems high, but com-pared to CAGRD, it’s a drop in the bucket.”

Contact reporter Patrick McNa-

mara at [email protected] or (520) 295-

4259.

NEWSPUBLIC NOTICESBusiness bankruptcies, foreclosures and liens recorded in Tucson or Pima County and selected fi lings in Phoenix. Addresses are Tucson unless otherwise noted.

BANKRUPTCIESChapter 11 - Business reorganization Next Level FP LLC, 2809 Northridge St., Sierra Vista. Principal: Thomas Roar. Estimated assets: More than $100,000 to $500,000. Estimated liabilities: More than $500,000 to $1 million. Largest creditor(s): Schedule not fi led. Case No. 12-17086 fi led July 31 (Case dismissed Aug. 2 due to lack of legal representation). Law fi rm: Pro se

Ventana 20/20 LP, 5800 N. Kolb Road. Principal: John Murphy, manager. Estimated assets: More than $10 million to $50 million. Estimated liabilities: More than $10 million to $50 million. Largest creditor(s): Schedule not fi led. Case No. 12-17493 fi led Aug. 3. Law fi rm: Mesch Clark & Rothschild

FORECLOSURE NOTICES Collings Construction Co. LLC 12320 N. Durham Wash Drive, Marana 85658Tax parcel: 219-36-0840Original Principal: $260,250.00 Benefi ciary: Washington Federal Savings, Oro Valley Auction time and date: 10 a.m. Nov. 6, 2012 Trustee: Craig H. Kaufman, Quarles & Brady, 1 S. Church Ave., Suite 1700

Collings Construction Co. LLC 12370 N. Faraway Wash Trail, Marana 85658Tax parcel: 219-36-0840Original Principal: $237,750.00 Benefi ciary: Washington Federal Savings, Oro Valley Auction time and date: 10:30 a.m. Nov. 6, 2012 Trustee: Craig H. Kaufman, Quarles & Brady, 1 S. Church Ave., Suite 1700

LIENSFederal tax liens AWOL Industrial Supply LLC, 6420 E. Broadway A200. Amount owed: $10,656.28. Schoen Estate Inc., 6241 N. Panorama Drive. Amounts owed: $126,357.51; $80,680.14; and $1,689.99.Michael Richard Griffi th LLC, 7017 E. Strike Eagle Way. Amounts owed: $108,114.91 and $62,264.48.Precision Alignment & Brake and Griffi th Group LLC, 1400 S. Alvernon Way. Amount owed: $42.292.90. Kyosushi Chinese Combo & Vietnamese and Ung Vo, 9040 E. Valencia Road. Amount owed: $2,716.21. Taqueria Juanitos and Juan Suazo, 708 W. Grant Road. Amount owed: $2,132.37. Carson Concrete & Decking Inc., 3475 N. Dodge Blvd. Amount owed: $12,253.89.

State liens (Liens of $1,000 or more fi led by the Arizona Department of Revenue or Arizona Department of Economic Security.)RCG Enterprises and Robert C. Gutierrez and Rose Marie Gutierrez, 2240 N. Via De Suenos. Amount owed: $13,326.14.Zachary’s Classic Pan Pizza and David C. Ellis, 1028 E. Sixth St. Amount owed: $71,842.36.

Mechanic’s liens (Security interest liens of $1,000 or more fi led by those who have supplied labor or materials for property improvements.)

Ascent Aviation Services Corp. against Falcon Air. Amount owed: $189,120.48.

Ascent Aviation Services Corp. against Vision Asset Company LLC and Wells Fargo Bank Northwest. Amount owed: $8,322.75. Ascent Aviation Services Corp. against Vision Airlines Inc. Amount owed: $220,504.94.

Release of federal liens W Boutique LLC, 4340 N. Campbell Ave., Suite 185Yokohama Rice Bowl and Andrew J. Weber, 5402 E. SpeedwayGateway West Realty Inc., 2151 W. Felicia PlaceMotto Productions Inc., 135 W. Council St. Loft Cinema Inc., 3233 E. SpeedwayContinental Ranch Family Practice PC LLC, 8275 N. Silverbell Road, Suite 113, MaranaParty Carousel LLC, 903 N. Swan RoadJani King, A&R Professional Services LP and Art Kingman and Richard Salazan, PO Box 12094, 85732 Planet Hair Care Inc., 8327 Rose Marie LaneWestern International Aviation Inc., 5951 S. Wilmot RoadMassengale & Associates Consulting Inc., PO Box 30722, 85751Raymond S. Sardina Distribution Inc., 1892 W. Merlin RoadAcoma Animal Clinic Inc., 1000 E. Butler Ave., Suite 101, FlagstaffAAA Pool Service of Tucson Inc., 4039 S. Escalante PlaceHead East & Head West and MRN Ltd., PO Box 17009, 85731Rick’s Pest Control LLC and Richard R. Woodard, 1870 N. Curvo Pasto, Green ValleyTohono O’odham Community Action, PO Box 1790, Sells 85634Strategic Space Development Inc., 9121 E. Tanque Verde Road, Suite 105Radius Architects LLC and Robert Castle Gay, 8220 N. Rancho Catalina Ave., Oro ValleyRumsey Architecture LLC, 3541 S. Calexico Ave. Rafael Tovar Roofi ng Inc., 134 E. 25th St. Arizona Small Animal Clinic and Cleo Corp., 10 E. 31st St., South Tucson

Release of state liens Fuku Sushi & Teppan LLC, 845 E. University Blvd. #175Industrial Pavement Maintenance, 637 N. Catalina Ave.Trajen Flight Support LP, 3131 Briarcrest Drive, Suite 100, Bryan, TexasAZ Pollution Control and Christopher S. Bond, 1322 N. First Ave.Perfection Automotive and Greg Blainer, 3616 N. Forgeus Ave.Green Valley Auto Service Inc., 261 W. Calle De Las Tiendas, Green ValleyParker Consulting LLC, 4500 E. Speedway, Suite 16

Release of mechanic’s liens Cactus Rose Construction Inc. against City South Plaza LLC and La CuracaoATS Electric Inc. against Vratsinas Construction Company, City South Plaza LLC, Volk Company and La CuracaoMajestic Drywall LLC against City South Plaza LLC, La Curacao and Vratsinas Construction CompanyCalifornia Wholesale Material Supply Inc. and Desert Building Materials/Tucson Branch against City South Plaza LLC and Majestic Drywall LLCCity Electric Supply against Parkway Construction & Associates LPKelley Bros. Arizona against QIP Tucson Offi ce I LLCBenson Security Systems Inc. against Valencia I-19 Investments LLC and Southgate AcademySouthwest Hazard Control against Wetmore Plaza LLCAscent Aviation Services Corp. against North Shore Aricraft LLC and Wells Fargo BankAscent Aviation Services Corp. against Falcon Air

A pipeline delivers water to the fi nal treatment stage before it’s discharged into the wash at Marana’s wastewater treatment facility. The town wants the treated water to offset groundwa-ter pumping and facilitate future growth.

WATER | CONTINUED FROM PAGE 5

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SMALL BUSINESSNew project helps employers talk to employees about election

Th ere is no doubt that election season is in full swing. It’s hard to ignore the political signs lining our roadways, television commercials and our mailboxes fi lled with full-color, glossy pieces.

If nothing else, keep in mind that many small businesses and advertising sales representatives benefi t from this activity, and our local economy enjoys a temporary boost.

But so much coming at us all at once can also be overwhelming. Especially here in the Tucson region where we have Tucson city wards, county districts, state legislative districts and school districts. It can be enough to discourage people from voting or even worse, being an uninformed voter.

I believe the average voter wants to do the right thing and not waste a vote. I also believe that now, more now than ever, the average voter considers how hers or his vote will impact an employer or clients.

Job security is no longer undervalued or an afterthought, it’s a real concern for American workers who understand that elections have consequences.

Th is is a positive because it encourages voters to fi nd a balance between their personal beliefs and what’s in the best interests of their employer.

With so much information competing for

our attention, much of it partisan, where is a person to go for unbiased and factual informa-tion? Arizona workers and employers now have a new resource, the recently launched

Arizona Prosperity Project. Th e Prosperity Project is a national,

grassroots program that provides employ-ers with straightforward, non-partisan information for their employees on issues and candidates at the state and federal level.

When workers are informed and active in government and elections, our families, our communities and our state will benefi t. Th at is a fundamental belief of the Prosper-ity Project.

Th e program is independently managed by local organizations that understand the needs of their state’s business interests and the program is currently in 40 states. Th e Arizona Prosperity Project will not tell people how to vote, but it will empower voters and

help them better understand the most important issues facing Arizona businesses.

Th e Arizona Small Business Association (ASBA) is pleased to be among the fi rst organizations, along with the Arizona Chamber of Commerce and Industry and a handful of others, to take the lead in bringing the Prosperity Project to Arizona.

Th e Arizona Prosperity Project has been launched at an ideal time and is focused on providing election resources such as voter registration and polling place fi nder, zip code search displaying candidates running in your district, and the voting records of incumbent state legislators on business-friendly legislation.

Another fundamental belief of the Prosperity Project is that America works best when its citizens cast informed votes.

Given the impact elections have on the bottom line of every business, voters should not make decision based on attack ads and limited information.

Narrowly focused interest groups are making great use of social media and other technology to spread their messages to voters. Th ey rarely address how an election will impact competitiveness, job security and future prosperity.

Th e Arizona Prosperity Project gives

employers tools to help their employees be better informed voters, while respecting their individual beliefs and their right to choose.

Research has shown that employers are viewed by their employees as a credible source of election information and they welcome their feedback.

I invite you to visit the Arizona Prosper-ity Project — www.azprosperity.org — to learn more about the top issues facing Arizona businesses and explore the available resources.

I also encourage you to begin the political dialogue with your staff . It’s important that everyone keep an open mind and all positions are respected. Designate a fi xed amount of time for this discussion and remember that it’s OK to discuss business issues in a business environment. We’re not talking religion here.

Finally, help you employees learn how to fi nd their elected offi cials and candi-dates running for public offi ce and encourage them to be informed voters.

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

JERRY BUSTAMANTE

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

{TELL US ONLINE}

PEOPLE IN ACTION

APPOINTMENTS

Judith H. DiMarco, PhD, has been appointed associate dean of administrative affairs and chief of staff for the University of Arizona College of Medicine – Tucson. Prior to joining the UA College of Medicine, DiMarco served as administrator for a University of Texas Medical Branch (UTMB) School of Medicine Administrative Services Group. DiMarco earned a bachelor’s degree in psychology and sociology from Alma College, Alma, Mich.; a master’s degree in community

psychology from Long Island University, Greenvale, N.Y., and a doctorate in population health sciences/epidemiology from UTMB in Galveston.

PROMOTIONS

Nicola C. Richmond, executive director of planning and institutional research at Pima Community College, has been named dean of business, occupational and professional programs at PCC’s Downtown Campus. Richmond has worked at PCC since January 2008. Richmond has a

doctorate in geophysics from University College London and a bachelor’s of science degree in geophysics from the University of Southampton in England.

Aviar Commercial Space Planning & Design has promoted Lullen Pajorto an interior designer. Pajor is now a full time commercial interior designer. Pajor graduated from the Southwest University of Visual Arts in Tucson. She has fi ve years of design assistant experience.

ELECTIONS

Handi-Dogs, a local non-profi t with a mission to help seniors and people with disabilities, has elected the following people to its board of directors: Luba Chliwniak, Ph.D., president of Pima Community College - Downtown Campus; Dr.

Curtis Mack, physician with Arizona Oncology; Adina Wingate, director of marketing at Pima Council on Aging; Jane Klipp, educational consultant.

The Foothills Club of Tucson, a non-profi t, charitable organization, has selected its board

of directors for 2012-13. The newly elected board of directors are: President - Marc Bleaman, Bleaman Law Firm, P.C.; Vice President - George Couston, Clarke Custom Homes; Secretary/Treasurer - Justin Martinez, National Bank of Arizona;

Information Offi cer - Ed Alexander, KVOI/KCEE Radio; Membership Chair - Kim Kennedy, Richard Kennedy, CPA; Networking Chair - Tony Williams, Williams Technical Services; Giving Chair - Chrissy Frey, Frey Financial; Social Chair - Ed Lochhead,

Roadrunner Auto Glass/Tinting; Valentines Chair – Sandra Swanson;

Golf Chair - Gary Oschmann, Oschmann Employee Screening Services; Member-At-Large - Carol Cristiani, Aqua Chill of Tucson; Member-At-Large - Keith Cooper, Alphagraphics.

NEW HIRES

Moore Financial Strategies, has hired Thomas Paluda. Paluda has a background in insurance and

fi nancial services.

CREST Insurance Group has hired Chris Gordon as an employee benefi ts and insurance consultant. Gordon has more than 13 years of experience in the employee benefi ts and insurance fi eld. His areas of expertise are in traditional employer benefi ts, alternate funding strategies, health care reform compliance and providing a full service brokerage experience to clients of all sizes. He has a degree in sociology from Northern Arizona University.

THOMAS PALUDA CHRIS GORDONNICOLA RICHMOND LULLEN PAJOR


TOURISMTOURISM IN TUCSON

Tucson’s ‘the Real Southwest’connects with new Brand USA

With more than 9 in 10 U.S. registered voters saying in a recent USA Today/Gallup poll that the economy is extremely or very important to their vote in this year’s presiden-tial election, “Th e economy, stupid quip,” is as relevant today as it was 20 years ago.

Th e Obama Administration says its No. 1 priority is strengthening the economy and putting more Americans to work. Although the U.S. economy is growing at a 2 percent rate, most economists say it’s not enough to make a noticeable diff erence in unemploy-ment. But there is a silver lining trending in one sector: Tourism.

According to the U.S. Travel Association, the tourism industry is creating jobs 26 percent faster than other industries. And with 29 consecutive months of growth in travel-related expenditures, the U.S. Commerce Department says 2012 will be a record-breaking year.

Global travel spending is expected to double to $2.1 trillion by 2020, but compe-tition for this market share is fi erce. Unlike neighboring countries Canada and Mexico, which spend $91.9 million and $173.8 million respectively on unifi ed tourism branding and promotion, the United States has not, until the passage of the Travel Promotion Act in 2010, engaged the industry or invested in this lucrative sector. Th at is, our country has relied solely on state tourism offi ces and CVBs (convention and visitors bureaus) such as the Metro-politan Tucson Convention and Visitors Bureau (MTCVB), to lure travelers from their international target markets to experience a slice of Americana – or in our case, a taste of the Real Southwest.

While destinations across the country welcomed an impressive 60 million international travelers in 2010, truth be told, the U.S. world market share had actually nose-dived in the last decade as countries including the United Kingdom, Canada and Mexico – with established, recognizable brands – were outspending the U.S. signifi cantly, thus making greater gains in market share and returns on investment. Because of the successful lobbying of the president and Congress on the part of a unifi ed travel industry, the administration is seeing the power of tourism.

In January, President Obama announced the creation of a national travel and tourism strategy to grow the U.S. economy. For the fi rst time in our nation’s history, we now have an established corporation for travel promotion, known as “Brand USA” — www.thebrandusa.com . With an annual budget of $200 million. Brand USA’s mission is to increase international visitation to the United States and grow global market share,

which will in turn strengthen our economy and job growth, while maximizing the marketing eff orts for destinations and travel brands, like ours, across the country.

Th rough research and an

elaborate branding eff ort, Brand USA has developed a global brand that’s welcoming, unexpected and inclusive – and one that cel-ebrates the idea “there’s no one thing that defi nes the U.S. but that each visitor and each experience helps create the fabric of our American culture.” Positioned as “Th e United States of Awesome Possibilities,” the brand comes to life in four experiential pillars – Great Outdoors, Urban Excitement, Indulgence, and Culture. You can see examples at www.DiscoverAmerica.com.

As part of a globally coordinated marketing eff ort, the campaign launch “Land of Dreams” is currently being tested in Canada, Japan and the U.K. Before the end of the year additional markets will be added, including Mexico, France and Germany. With the exception of Japan, the MTCVB allocates resources to reach key audiences in these feeder markets. Th e lion’s share of our international budget is spent marketing to the Mexican visitor as they pump nearly $1 billion annually into Tucson’s economy. Also signifi cantly important to Tucson are Canadian travelers, who spend nearly $800 million annually and account for over half of all international spending in Arizona.

Th e MTCVB has entered into a partner-ship with Brand USA, which will extend our international market reach by 30 percent. Th is added exposure will increase brand aware-ness for the Real Southwest campaign, which emphasizes Tucson’s rich cultural heritage and plays off our region’s spectacular climate and immense natural assets, all of which aligns with Brand USA’s experiential pillars.

Th e economic impact of tourism promotion is clear and compelling. It increases visitation, generates greater tax revenues that lessen the burden on local taxpayers and creates jobs. See how tourism impacts Tucson’s economy at www.visittucson.org/tourismpays .

Contact Allison Cooper, director of

Marketing at the Metropolitan Tucson

Convention and Visitors Bureau, at acoo-

[email protected] . Th is monthly column is

prepared by the MTCVB.

ALLISON COOPER

GOOD BUSINESSPR CORNER

Two-way communication with a ‘village’ achieves success

When I meet with various stakeholders in the community regarding air service, I often tell them, “It takes a village to raise an airline.”

Sometimes, however, the “village” isn’t fully aware of just how much benefi t and positive change it can create by pooling eff orts toward a common goal; thus creating the perfect opportunity for implementation of a comprehensive community outreach program.

Just over a year ago, Tucson Airport Authority (TAA) embarked on the Working Together initiative, our community outreach eff ort to bring together and work with the community at all levels to achieve common goals with respect to air service.

TAA recognizes the role of air service in economic development, generation of high quality jobs and overall quality of life, and we know it’s important to work with our stakeholders and customers who are vested in the success of TAA’s two airports — Tuc-son International Airport and Ryan Airfi eld.

For this program, we fi rst identifi ed the various stakeholder groups who rely on the airports for their business needs. We then developed a set of questions based on the subjects we wanted to cover with them and scheduled meetings with key staff mem-bers who would have the best knowledge of those topics.

For example, in the lodging industry, we met with the general managers and sales teams of our region’s major resorts to identify where they are gaining or losing market share, how air service at Tucson International Airport plays a role in their ability to gain business, and what informa-tion we could provide to help their sales teams be more successful.

Th is allowed us to identify target destinations that we could then use to quantify travel demand.

Th e Working Together initiative has allowed us to connect with our customers and stakeholders in a more personal and direct way to better understand how air service aff ects their bottom line.

From lodging to biotech, we have discovered new opportunities to share information, market amenities, gather data and develop ideas that will make Tucson more attractive in the eyes of the airlines.

Th e results of this community outreach program have far exceeded our expecta-tions. Th rough personal engagement, we have created avenues for new sources of information that is critical to our air service development eff orts that we could never have developed on our own.

We’ve better informed business leaders at all levels on how they can help the

airport retain and grow air service in the region.

We’ve engaged our customers in all sectors to help support air service development through private-sector investment, bringing Tucson more in line with

what other comparable cities are doing to attract new routes.

We also were able to discover the tremendous pride that our community has in its airport, and that is probably one of the most important pieces of information of all.

Th is level of community outreach is often an overlooked tactic that businesses large and small don’t fully utilize in their public relations eff orts. Th is frequently stems from a fear of what organizations will hear when they “put themselves out there.”

Th e reality is that the conversation — good or bad — is happening without you, and your customers are just waiting to be asked and would welcome the opportunity to engage with you. Th e discoveries — posi-tive and negative — can be nothing but valuable in helping your organization improve its level of service or product delivery.

When it comes to achieving success, this customer connection can make or break your bottom line.

While social media and other tactics allow for an ongoing dialogue with customers, there’s nothing like talking to a real person. You can ensure your messages are being delivered — and heard — while at the same time gathering feedback essential for improving your eff orts. Whether it’s speaking to a local group, or just sitting down one-on-one with your customers, the time will be well spent. Success, no matter how you defi ne it for your organization, can’t be achieved alone.

Contact Mary Davis, senior director of

Business Development and Marketing for the

Tucson Airport Authority, at mdavis@

tucsonairport.org. Davis also serves as

Southern Arizona chapter delegate to the

Public Relations Society of America, whose

members produce this monthly column.

MARY DAVIS


FilmTh is week a

slew of fi lms hit Tucson screens including the highly anticipated revisit to “Th e Bourne Legacy,” which marks actor Jeremy Renner’s debut in the Matt

Damon-led franchise. Also, out for a diff erent demographic this week, is “Hope Springs,” which follows a married couple — Tommy Lee Jones and Meryl Streep — as they work through intimacy issues with a therapist played by Steve Carell. A political comedy, “Th e Campaign” stars Will Ferrell and Zach Galifi anakis about a wacky duo seeking election. And then there’s my pick of the week; the charming “Ruby Sparks,” about a writer who invents his ideal girlfriend on paper and she becomes real. Th e Loft Cinema, 3233 E. Speedway, is opening two compelling documentaries, “Ai Weiwei: Never Sorry” and “Neil Young Journeys” this week along with the outrageous Danish comedy “Klown.”

Contact Herb Stratford at herb@

ArtsandCultureGuy.com. Stratford teaches

Arts Management at the University of Arizona.

Th is column appears weekly in Inside Tucson

Business.

HERB STRATFORD

ARTS & CULTURE

Th e future of Southern Arizona’s fi lm industry will be the topic of a town hall and panel discussion next Th ursday (Aug. 16) evening in the auditorium of the Center for Creative Photography, 1030 N. Olive Road near the southeast corner of East Speedway and Park Avenue on the University of Arizona campus.

Among those participating are Tucson Film Offi ce Director Shelli Hall, Tucson City Councilman Steve Kozachik and industry professionals. Th e discussion will be moderated by Harry Tate, former director of the Arizona State Film Offi ce.

Doors open at 6 p.m. and the discus-sion begins at 7 p.m. Seating is limited so interested attendees are asked to make reservations through the Tucson Film Offi ce by calling (520) 770-2151.

MusicTh e 1980s British group Duran Duran,

part of the so-called second British invasion who took their name from the cult fi lm “Barbarella,” will perform at 8 p.m. Sunday at AVA Amphiteater at Casino Del Sol, 5655 W. Valencia Road.

Art“Funny and Fine” is the name of a

group show featuring works of fi ve Tucson artists that will hold its opening reception from 2-4.p.m Sunday (Aug. 12) at the Tucson Jewish Community Center, 3800 E. River Road. Th e show will be up through Sept. 11.

An exhibit called “A Classic Collec-tion,” featuring photographs by master artists will end its run Aug. 31 at Etherton Gallery, 135 S. Sixth Ave.

Tucson’s fi lm industry to be subject of town hall meeting

OUT OF THE OFFICEMEALS & ENTERTAINMENT

Salsa and tequila challengesreturn to La Encantada Aug. 25

Th e Southern Arizona Arts and Cultural Alliance (SAACA) is teaming again this year with La Encantada for the 2012 Salsa and Tequila Challenges Aug. 25.

Th e festivities start with a Salsa Chal-lenge at 5 p.m. that feature live mariachis, dance lessons, children’s activities and samplings of about 30 salsas coming from both professionals and amateurs. Fifteen restaurants are participating in the professional salsa competition. Last year, the judges’ championship award went to Th e Grill at Hacienda del Sol and the peoples choice award went to co-owned Jax Kitchen and Th e Abbey.

Th e Tequila Challenge begins at 6 p.m. and will feature fl amenco dancers, fusion Latin music, food and tequila pairings from a dozen plus restaurants. In addition to being able to sample a variety of tequilas straight up, participating restaurants will be concocting tequila based cocktails – no margaritas, however.

Tickets to both salsa and tequila changes are $70 or $20 for just the salsa challenge. Buy them online through SAACA’s website http://saaca.org/ (click on “events”). Proceeds from the event benefi t the Tucson Community Food Bank and SAACA.

Sprucing up RARA Sushi has been busy this summer

adding items to its dinner and beverage menus. Th ere is a lot of variety on the new menu, including items such as a creamy edamame and spinach dip served with warm wonton chips, mussels steamed in sake, soy sauce and garic, salmon and green beans drizzled with a spicy yuzu sauce and their new crispy Asian tacos in which crispy rice paper shells are fi lled

with your choice of chicken, crispy white fi sh, spicy tuna or shrimp.

Additions the cocktail menu include a “straw-berry saketini,” “coconut moshi” and a cucumber collins. All are great cool down

drinks after a hot day. Th e menus aren’t all that’s new at RA.

Th e restaurant, including the entryway, bathrooms and the dining room, have also been remodeled. New tables and chairs are due to arrive.

• RA Sushi, 2905 E. Skyline Road in La Encantada — http://rasushi.com/ — (520) 615-3970

Fried chicken Sunday If your taste buds are craving comfort

food, then Downtown Kitchen + Cocktails’ “Sunday Comfort” Fried Chicken might fi t the bill. First the chicken is brined, then lightly roasted, dipped in a buttermilk bater and fried. It’s served with macaroni and cheese that’s been cooked with andouille sausage and bacon and southern style green beens. Th at’s all kinds of goodness on a plate for $17.

• Downtown Kitchen + Cocktails, 135 S. Sixth Ave. — http://downtownkitchen.com/ — (520) 623-7700

Contact Michael Luria at mjluria@

gmail.com. Meals & Entertainment appears

weekly in Inside Tucson Business.

MICHAEL LURIA


MEDIAKRQ holds its own in fi rst test against i97-5; Mix-FM takes a hit By David Hatfi eldInside Tucson Business

At fi rst blush, it looks like the prognostica-tors got it wrong when they said Clear Chan-nel’s KRQ 93.7-FM might get knocked down a peg or two in the ratings by the competition from Cumulus Media’s new i97-5 KSZR 97.5-FM. Th ey may have also missed the mark pre-dicting that Journal Broadcast Group’s Mix-FM KMXZ 94.9-FM shouldn’t have too much of a problem fending off new competition.

One ratings period doesn’t necessarily

decide anything. Most in the industry gener-ally agree that it takes about a year for listener habits to settle in after a format change but the latest Arbitron ratings are the fi rst full three-month ratings taken since a fl urry of format changes took place between mid Oc-tober and early February. Th is latest survey was conducted from March 29 to June 20.

In the top 40 battle, KRQ held on to its No. 1-rating among younger listeners but i97-5 more than doubled its ratings from a year ago when it played adult contemporary music and

was known as Bob FM. Instead of wounding KRQ, the two stations may have created a syn-ergy that contributed to a slight, 2.4 percent, increase in overall numbers of listeners tuning in top 40 music in a typical week.

On the adult contemporary front, it ap-pears that Mix-FM took a ratings hit, though it’s hard to pinpoint exactly where the audi-ence might have gone. Audience numbers were up slightly for Clear Channel’s new hot adult contemporary music station My 929 KMIY 92.9-FM over what it did a year ago as the Mountain but outside of the increases for KRQ and i97-5, only Cumulus’ classic hits station K-Hit KHYT 107.5-FM registered signifi cant gains among the targeted 25-54 year-old listeners.

Overall, the country music format on Cu-mulus’ KIIM 99.5-FM remains the No. 1-rat-ed radio station in the Tucson market, with KRQ moving up into the second-place posi-tion, Mix-FM dropping to No. 3, Lotus Corp.’s regional Mexican La Caliente KCMT 102.1-FM back in at No. 4 and K-Hit at No. 5.

Th ere were also some interesting devel-opments on the talk radio front, but more on that next week.

Harris leaves building Steve Harris has departed Journal

Broadcast Group where he had been cre-ative services director of Tucson operations

for nearly seven years and, assuming there were no hitches along the way, he starts work Monday as creative services director at the CBS affi liate in Austin, Texas. Th e sta-tion, owned by Sinclair Broadcast Group, has the call letters KEYE, as in “K-Eye” — get it, “eye,” the CBS logo?

As he was walking out the door in Tucson, Harris said he enjoyed his time here and spoke highly of Journal. As for why he made the move, “I’ve always wanted to live in Aus-tin. It’s the Live Music Capital of the World,” he said, adding that he really didn’t seek out the job. “I mentioned once to a friend I know at Sinclair that I like Austin and of the mar-kets where they have stations, I could go there.” As it turned out, they called him.

In terms of responsibility, Harris will over see one TV station, as opposed to the two TV stations and four radio stations Jour-nal operates in Tucson — KGUN 9, KWBA 58, Mix-FM KMXZ 94.9-FM, the Truth KQTH 104.1-FM, the Groove KTGV 106.3-FM and ESPN KFFN 1490-AM/104.7-FM.

Th is marks Harris’ return to working for Sin-clair. Prior to coming to Tucson he was director of advertising and promotion at a station in Sacramento, Calif., for 13½ years and for eight of those years it was owned by Sinclair.

Contact David Hatfi eld at

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

Inside Tucson Media appears weekly.

TOP 10RATED MORNING RADIO SHOWSRank Show Station Average

audience

6-10 a.m.

weekdays

1 Johnjay and Rich KRQ 93.7-FM 14,500

2 Max, Shannon and Porkchop KIIM 99.5-FM 14,400

3 Los Hijos de La Manaña La Caliente KCMT 102.1-FM 11,900

4 Bobby Rich Morning Mix Mix-FM KMXZ 94.9-FM 10,300

5 The Frank Show KLPX 96.1-FM 8,300

6 Garret Lewis Morning Ritual KNST 97.1-FM/790-AM 6,800

7 Tim Tyler K-Hit KHYT 107.5-FM 6,400

8 Mojo in the Morning Hot KOHT 98.3-FM 6,600

9 Fook KFMA 92.1-FM/101.3-FM 4,900

10 Alex "El Genio" Lucas La Preciosa KTZR 1450-AM 4,700

Source: Arbitron Inc.

TUCSON RADIO RATINGSAverage percentage of listening audience 12 years old and older, Monday-Sunday 6 a.m. - midnight

Ranking Station Format Owner April-June

2012

Jan-Mar

2012

April-June

2011This Last

1 1 KIIM 99.5-FM Country Cumulus 9.4 10.3 9.32 3 KRQ 93.7-FM Top 40 hits Clear

Channel 7.9 7.8 8.3

3 2 Mix-FM KMXZ 94.9-FM Adult contemporary

Journal 6.6 8.4 8.7

4 5T La Caliente KCMT 102.1-FM Regional Mexican

Lotus 6.3 5.3 7.0

5 4 K-Hit KHYT 107.5-FM Classic hits Cumulus 4.9 5.4 4.96 7T KLPX 96.1-FM Classic rock Lotus 4.7 5.2 3.7

7 7T KUAZ 89.1-FM/1550-AM NPR/jazz Arizona Public Media

4.6 5.2 5.3

8 12 KFMA 92.1-FM/101.3-FM Alternative rock Lotus 4.3 3.2 3.69 9 KNST 97.1-FM/790-AM * News-talk Clear

Channel3.8 3.7 3.0

10 5T Hot 98.3 KOHT 98.3-FM R&B hits Clear Channel

3.6 5.3 3.7

11 11 My 92.9 KMIY 92.9-FM * Hot adult contemporary

Clear Channel

3.0 3.3 3.1

12T 11 The Groove KTGV 106.3-FM *

Rhythmic oldies Journal 2.6 3.5 2.5

12T 13 La Poderosa KZLZ 105.3-FM Regional Mexican

KZLZ LLC 2.6 3.0 1.4

14 14 KUAT-FM 90.5-FM/89.7-FM Classical music Arizona Public Media

2.5 2.2 3.2

15T 15 KTUC 1400-AM Pop standards Cumulus 2.1 2.0 1.915T 21 La Preciosa KTZR 1450-

AM *Spanish oldies Clear

Channel2.1 0.8 0.7

15T 16 The Truth KQTH 104.1-FM News-talk Journal 2.1 1.8 3.318 17 i97-5 KSZR 97.5-FM * Top 40 hits Cumulus 2.0 1.5 1.3

19T 25 KEVT 1210-AM Spanish variety One Mart 1.2 0.3 1.219T 19 Tejano KXEW 1600-AM Tejano Clear

Channel1.2 1.1 1.0

21T 20 ESPN Radio KFFN 1490-AM/104.9-FM *

Sports-talk Journal 1.1 0.9 0.8

21T 18 KCEE 690-AM Pop standards Good News

1.1 1.2 1.8

23 22 The Source KCUB 1290-AM Sports-talk Cumulus 0.7 0.7 0.624 24 The Voice KVOI 1030-AM News-talk Good

News0.6 0.6 0.8

25T - KFLT 830-AM Christian Family Life

0.4 n/a 0.3

25T - KFLT-FM 88.5-FM Inspirational music

Family Life

0.4 n/a 0.4

25T 23 KGVY 1080-AM/100.7-FM * Oldies/ pop standards

KGVY LLC 0.4 0.6 <

- - Star KWFM 1330-AM * News-talk Hudson < < 0.5

Source: Arbitron Inc. Exact dates of laterst ratings survey were March 29-June 20, 2012. Previous survey was conducted Jan. 5-March 28, 2012. Year ago survey dates were March 31-June 22, 2011. < - Indicates ratings below minimum for reliability. n/a - Noncommercial or religous station ratings unavailable.* Notes:KGVY began broadcasting on its FM frequency April 1, 2011.KMIY was formerly The Mountain KWMT with modern music format until Nov. 18, 2011. KNST began broadcasting on its FM eff ective Nov. 28, 2011. KSZR was formerly branded as Bob-FM with adult contemporayr music format until Feb. 3, 2012.

KTGV was formerly Mega KGMG with R&B and oldies format until Oct. 17, 2011.

KTZR was formerly Funny KWFM with all-comedy format from Jan. 26-Nov. 21, 2011, and before that was Cool KWFM with oldies format..

KWFM was formerly branded The Jolt KJLL, but with same format, until Jan. 21, 2012.

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audience

1 KIIM 99.5-FM 5,900

2 KRQ 93.7-FM 4,400

3 La Caliente KCMT 102.1-FM 4,200

4 Mix-FM KMXZ 94.9-FM 3,900

5 KFMA 92.1-FM/101.3-FM 3,200

6 KLPX 96.1-FM 3,100

7 K-Hit KHYT 107.5-FM 2,700

8 My 92.9 KMIY 92.9-FM 2,300

9 Hot 98.3 KOHT 98.3-FM 1,900

10 La Poderosa KZLZ 105.3-FM 1,700

Source: Arbitron Inc.,average audience Aomen ages 25-54 Monday through Sunday, 6 a.m. to midnight.

`

TOP STATIONS: ADULTS 1834 Rank Station Average

audience

1 KRQ 93.7-FM 4,300

2 KIIM 99.5-FM 2,700

3 Hot 98.3 KOHT 98.3-FM 2,000

4 tie La Caliente KCMT 102.1-FM 1,900

4 tie KFMA 92.1-FM/101.3-FM 1,900

4 tie KLPX 96.1-FM 1,900

7 Mix-FM KMXZ 94.9-FM 1,400

8 tie K-Hit KHYT 107.5-FM 1,300

8 tie My 92.9 KMIY 92.9-FM 1,300

10 La Poderosa KZLZ 105.3-FM 1,100

Source: Arbitron, average audience Adults ages 18-34 Monday through Sunday, 6 a.m.-midnight.


GET ON THE LISTNext up: Highest paid city and county offi cials, Sal-ary comparison of regional government offi cials

Inside Tucson Business is gathering data for the 2013 edition of the Book of Lists. Categories that will be published in upcoming weekly issues of Inside Tucson Business are:

• Aug. 17: Asset management firms, Aeronautical firms

• Aug. 24: Highest paid city and county officials, Salary comparison of regional government officials

• Aug. 31: New car dealers• Sept. 7: Television stations, Radio sta-

tions• Sept. 14: Minority-owned businesses,

Exporters If your business fits one of these cat-

egories, now is the time to update your profile. Go to www.InsideTucsonBusiness.com and click the Book of Lists tab at the top of the page. New and unlisted busi-nesses can create a profile by following the directions.

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

HEALTH CARE Northwest hospital plans$50 million expansion

Northwest Medical Center, 6200 N. La Cholla Blvd., this week announced plans to spend almost $50 million to expand its operating room expansion to include a new surgical wing.

The project is to be completed in a series of phases beginning this winter and will take up to 20 months. Officials say construction won’t disrupt services at the hospital.

Currently, Northwest Medical Center has 12 operating rooms. The expansion will bring that total to 16 rooms, all outfit-ted as minimally invasive operating room suites. An increasing number of surgeries are minimally invasive and the new suites will better accommodate that technology, the hospital said.

Operating rooms will be an average of 550 square feet; the existing suites average 400 square feet. Larger rooms will allow greater access for the da Vinci Robot for minimally invasive surgical procedures.

MININGState to issue Rosemont permits

The Arizona Department of Environmental Quality on Friday (Aug. 3) announced plans

to move forward on issuing an air quality per-mit for the proposed Rosemont Copper mine in the Santa Rita Mountains, about 30 miles southeast of Tucson.

The ADEQ decision begins a 60-day process of public comment on the issu-ance of the air quality permit.

The move follows a July ruling in Pima County Superior Court wherein a judge called Pima County Air Quality Control District and Pima County Air Quality Hearing Board “arbitrary and capricious” in denying Rosemont Copper the requisite permits.

In a letter dated Aug. 3 to Ursula Kramer, director of the Pima County Department of Environmental Quality, the reiterated the assertion that the county had acted unfairly.

“ADEQ finds PDEQ’s actions on the Rosemont permit have caused significant regulatory uncertainty by denying a per-mit application based on the lack of appli-cable SIP (State Implementation Plans) requirements, especially since the iden-tification of those requirements has not been required of any precious applicant for at least a decade,” wrote Eric C. Massey, director of air quality for ADEQ.

Because of that uncertainty, Massey wrote, the state chose to assert jurisdic-tion over air quality issues in relation to Rosemont.

The legal and regulatory wranglings over the proposed open-pit copper mine in the Santa Rita Mountains has been going on since 2007.

The project still requires regulatory approval from the federal government.

BRIEFS

POLITICSChamber’s PAC issues5 primary endorsements

The Tucson Metro Chamber’s politicial action committee, the Southern Arizona Business Political Action Committee, has issued endorsements in five competitive primary election races. The candidates that are endorsed are either in a race that will be determined in the primary or must win the Aug. 28 primary to move on to the general election.

Each of the endorsements is a result of an evaluation done by a committee of 11 chamber members, comprised of registered Democrats, Republicans and independents. The endorsed candidates are pro-business and “understand the vital role Arizona’s businesses play in the state’s economic vitality and thus are committed to preserving Arizona’s strong business cli-mate and Arizona’s prosperity,” according to the chamber.

For the state Senate, Olivia Cajero-Bedford is endorsed in the Democratic primary over Maria Garcia in Legislative District 3. There is no Republican running in the general election so, barring a write-in candidate, the winner of the primary will be elected.

For the state House, the committee endorsed Victoria Steele in the Democratic primary in District 9. There are two other candidates in that race, Dustin Cox and Mohur Sara Sidhwa. The two highest

vote getters will face Ethan Orr, the only Republican seeking to fill the two open House seats.

In District 10, the committee endorsed incumbent Bruce Wheeler in the Democratic primary over the two other candidates, Stefanie Mach and Brandon Patrick. There are also two Republicans seeking House seats in that district, Todd A. Clodfelter and incumbent Ted Vogt.

The other two endorsements were made in county races. For Board of Supervisors in District 1, the committee endorsed Mike Hellon over Stuart McDaniel, Ally Miller and Vic Williams in the Republican primary. The winner will face Democrat Nancy Young Wright in the general election seeking to fill the seat being vacated by Ann Day.

And for Pima County School Superintendent, the chamber commit-tee endorsed the re-election of Linda Arzoumanian over Mace Bravin in the Republican primary. There is no Democrat running in the race.

Early voting is already underway and continues through Aug. 24 for the primary election.

The Southern Arizona Business PAC is a pro-business committee that supports candidates of all parties who understand the vital role Arizona’s businesses play in the state’s economic vitality and thus are committed to preserving Arizona’s strong business climate and Arizona’s prosperity. SAZPAC is the political action arm of the Tucson Metro Chamber.

Realtors make endorsementsin 3 of 5 supervisor races

The Tucson Association of Realtors has issued endorsements in three of the five Pima County Supervisor election races.

The group endorsed incumbents Ray Carroll in District 4, and Democrat Ramón Valadez in District 2. Carroll is facing a pri-mary election challenge from Sean Collins but there is no Democrat running in the general election. Valadez has no primary challenge but will face Republican James Kelly in the general election.

The Realtors’ other endorsement went to Stuart McDaniel, one of four Repbulicans seeking to fill the vacancy created by the retirement of Ann Day. The other Republicans are Mike Hellon, Ally Miller and Vic Williams. The winner of that primary will face Democrat Nancy Young Wright in the general election.

The Realtors made no endorsements in the other two supervisor races. In District 3, incumbent Demcorat Sharon Bronson is facing a challenge from Republican Tanner Bell and in District 5 incumbent Democrat Richard Elias is being challenged by Republican Fernando Gonzales.

Sunfl ower is now offi cially SproutsAs part of the fi nal stages of completing their merger announced earlier this year, the Tucson region’s four former Sunfl ower Farmers Market locations were changed to Sprouts last weekend. The merged company, based in Phoenix, now operates under the Sprouts name at 4282 N. First Avenue at Limberlost Road, 7877 E. Broadway at Pantano Road, 4645 E. Speed-way at Swan Road and 3860 W. River Road Orange Grove Road, Marana. They join one store Sprouts was already operating in Tucson at 7665 N. Oracle Road, Oro Valley.


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PROFILE

Chapman Lindsey’s positive attitude helps clients get through down cyclesBy Christy KruegerInside Tucson Business

A slow real estate market can have its advantages depending on how one looks at it. From James Marian’s perspective as a longtime Tucson commercial real estate broker, what’s bad on one side of the coin may be good on the other side.

“When the market is hot, it’s diffi cult to make deals. Th e easiest time to sell real estate is when the market is in the toilet,” Marian said.

In 1991, Swaim Chapman, Paul Lindsey, Ben Becker, Daniel Feig and Marian formed Chapman Lindsey Commercial Real Estate Services. Today, Marian and Feig are the only remaining original partners.

Alan Moore has since become a third partner and Aaron Mendenhall and Juan Teran are associates.

Th e company handles all facets of commercial transactions, including investments, land, offi ce, industrial, leasing and shopping center management.

Th e Chapman Lindsey team members have been around long enough to live through several economic cycles and are familiar with how market swings aff ect their business. Th ey take the positive approach, sometimes going after business others may not want to touch.

“We’ve done very well in the worst markets,” Marian said. “We formed during the RTC (Resolution Trust Corporation) days; we did 52 transactions with RTC. We do a lot of foreclosure work. We’ve done $600 million in real estate deals with only four or fi ve partners.”

Although their specialties overlap with one another, Feig concentrates on selling subdivisions, vacant land and shopping centers; Moore sells and leases offi ce and industrial space; and Marian works with land, which can be diff erent than other segments of commercial real estate.

“It takes longer to close, especially if rezoning is involved, which can take six to 12 months. Th ere is a lot of analysis, feasibility, engineering, title reports and setbacks. Land buying is as varied as they come,” he said.

Land clients include end-users, such as drug stores chains, churches and charter schools.

“Th en there are investors who look. Th ey’re from both in and out of town,” Marian noted.

Among the fi rm’s largest land clients over the years have been homebuilders.

“We’ve done business with every single homebuilder in town.” Many were once headquartered in Tucson, Marian added,

but have since consolidated and moved to Phoenix.

Business for Chapman Lindsey comes mostly through word of mouth.

“Ninety percent or more of our business is from referrals, we’ve been in town so long. Th ey come from prior buyers and sell-ers, other real estate brokers, civil engi-neers, attorneys and bankers,” Marian said.

Sometimes contacts from decades past become clients. In the late seventies, while a student at University of Arizona, Marian was the business manager for the Arizona Daily Wildcat. One of his advertising accounts was Posner’s Art Store.

Marian recently represented Posner’s in its search for a new location, made necessary due to a student housing project being built on the site at 1025 N. Park Ave. where it has been for close to 40 years. Th is month, Posner’s opened at its new location, 944 E. University Blvd. in the Main Gate Square area.

Outside of work, the partners and associates of Chapman Lindsey are active in the community and describe themselves as family oriented and highly ethical.

Th ey’re involved in civic and church groups, as well as industry organizations, such as Pima County Real Estate Research Council and Tucson Association of Realtors.

BIZ FACTS

Chapman Lindsey Commer-cial Real Estate Services LLC7411 E. Tanque Verde Roadwww.chapmanlindsey.com(520) 747-4000

Marian and Teran are past presidents of Certifi ed Commercial Investment Member, and Marian is the founder of the CCIM annual market forecast competition.

Chapman Lindsey’s forecast for the upcoming months is an improvement in the market.

“We’re in what’s called a sweet spot — not for apartment land, but for invest-

ment land. Buyers are more optimistic and sellers are fi nally discounting,” said Marian.

In his experience, and that of his partners, large investment land is moving, while the market is soft for small invest-ment parcels.

On the other hand, Marian realizes that the health of a particular real estate segment depends on which point of view you have.

“Th ere’s always demand for a given price,” he said, “but it may not be what the seller wants.”

The Chapman Lindsey team, from left: Juan Teran, Jim Marian, Aaron Mendenhall, Daniel Feig, Alan Moore.

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The Chapman Lindsey partners, from left: Jim Marian, Daniel Feig, Alan Moore.


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Southern ArizonaCHAPTER

COMMERCIAL REAL ESTATE

Fundamentals are mostly fl at with small gainsBy Roger YohemInside Tucson Business

Although the sector’s fundamentals re-main fairly fl at, industrial real estate man-aged to eek out a slight improvement in occupancy and rental rates in the second quarter of 2012.

Overall, the sector absorbed 122,175 square feet, nudging the vacancy rate down to 11.6 percent from 11.7 percent at the end of the fi rst quarter, according to CoStar Group. Th e fl ex-building subsector per-formed best, gaining 64,229 square feet of occupancy.

“Some of the positive absorption num-bers are a great sign the market has come to life. Yet while many companies are look-ing to expand their industrial space, nearly as many are looking to contract,” said Tim Healy, CBRE vice president and industrial market specialist. “Th is tug-and-pull of space may continue for the next few quar-ters but it is hoped the expansion and ab-sorption will begin to outpace contraction.”

Although the improved performance and “brokers are busy” mantra have not yet brought substantive expansion and job growth, Healy is optimistic about the com-Involta moved into the market with a $2 million building acquisition.

INDUSTRIAL SECTOR

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ing months. For the past few years, every local industrial market report was negative. Absorption was negative. Rent rates were eroding.

“Now we see quarterly swings from neg-ative to positive, a sign that we are on the road to recovery. Eventually, this will lead to expansion. You don’t go from A to Z in one leap. We’re somewhere in the middle, that’s how I look at the recovery,” he said. “Th e conditions are starting to line up to get us there.”

A positive was Pima County’s move to se-cure a buff er zone around Raytheon Missile Systems south of Tucson International Air-port. At $6 million for 382 acres, the safety and operations buff er also includes plans for a business park.

“Th at sent a good message to the market, local and national, that Pima county and Tucson city governments are serious about keeping Raytheon happy. Government is important to business, they can be a good partner or a bad partner,” Healy said.

During the second quarter, three new buildings totaling 79,153 square feet were delivered. Th e largest was Graybar Electric’s 55,000 square-foot facility near South Alver-non Way and East Irvington Road.

Construction in-progress totaled 175,000 square feet, according to CBRE. Th e largest project is a 125,000 square-foot logistics center by American Tire Distributors at 6720 S. Alvernon Way.

Also notable is the purchase and rede-velopment of a 40,000 square-foot build-ing at 4400 S. Santa Rita Ave. by Involta. Th e $15 million, state-of-the-art data center will feature 600 cabinets of high-security IT equipment serving national healthcare, government, educational, and other busi-ness clients.

“Sales in the quarter were larger, of a high-er quality than in recent periods although volume remains far from robust,” said Pe-ter Douglas, principal of Picor Commer-cial Real Estate. “Investor activity remains dominated by short sales and purchases di-rectly from foreclosed lender inventory. We do see some opportunistic activity as both businesses and investors pick up business from compressed competition.”

Since January, 32 industrial buildings have been sold and the current inventory stands at about 135 properties, added Hank Amos, president of Tucson Realty & Trust. Th at is enough “for the next two-plus years,” he said.

Th e Tucson market’s total industrial in-ventory now stands at 39.46 million square feet in 2,449 buildings, according to CoStar. Having lost 99,215 square feet of absorp-tion in the fi rst quarter, the sector currently stands at 22,960 square feet net absorption.

Owner-occupied buildings account for about 4 million square feet in 99 buildings.

Th e southwest/Tucson Airport subsector had the highest vacancy rate at 17.7 percent. Th e downtown zone had the lowest vacancy rate of 5.7 percent.

For the total industrial sector, the aver-age asking lease rate increased 17 cents to $6.65 per square foot in the second quarter. One year ago, the rate was $6.62, according to CBRE.

For this sector to progress, the region must cash in on its status as a hub for de-fense and aerospace manufacturing, medi-cal and life sciences research, and as a logis-tics location for international trade.

“Th e tenor of the market remains tenta-tive, with fundamentals fairly fl at. Activity is fairly shallow, and velocity remains slow,” said Douglas of Picor.

Added Healy, there is a lot of activity but much of it is “existing businesses moving around. At the end of the day, we need job growth. A town creates wealth by exporting goods.”


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

ing months For the past few years every

BIZ FACTS

INDUSTRIAL SECTOR (2nd Quarter)• Vacancy rate11.5% at 2011 4Q11.7% at 2012 1Q11.6 % at 2012 2QAbsorption: 122,175 square feet

• Largest building sale$4 million for 110,026 square feet 2650 E. Elvira RoadSeller: Veeco InstrumentsBuyer: Zygo Corporation

• Largest building lease101,226 square feet 6950 S. Country Club RoadSolon America

• Largest land sale$2.97 million for 11 acresSWC Houghton/Mary Ann Cleveland WaySeller: Diamond VenturesBuyer: Wal-Mart Real Estate

• Largest new completion 55,000 square feet3760 E. Tennessee St. Graybar Electric Company

• Largest under construction125,000 square feet 6720 S. Alvernon Way American Tire Distributors




Downtown, medical share spotlight as sector stabilizesBy Roger YohemInside Tucson Business

Two dissimilar business zones split the spotlight for offi ce space during the second quarter. As the downtown sector continued to lose tenants and evolve, an eastside health care cluster tended to some large-scale “ver-tical” new construction.

“Th e only submarket to experience a sig-nifi cant change in vacancy last quarter was downtown, which saw vacancy increase by 4.2 percent to 35.7 percent,” said David Montijo, fi rst vice president of CBRE. “Th e increase is largely due to the FBI vacating roughly 25,000 square feet, along with several other tenants contracting space on renewal leases at the offi ce tower at 1 South Church.”

CBRE represents the downtown tower that also lost UniSource Energy as a tenant. Th e utility company vacated 35,000 square feet when it moved into its own new head-quarters at 88 E. Broadway.

At 275 N. Commerce Loop west of down-town, the FBI has occupied its new 92,000 square-foot regional headquarters.

Downtown has the region’s highest of-fi ce vacancy rate at 35.7 percent, or about 340,000 square feet, according to CBRE. Th e The quarter’s largest lease was for 19,457 square feet by the University of Arizona Medical Center in an east side medical cluster.

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strongest area was the north central zone at 11.9 percent, gaining just over 10,000 square feet of occupancy during the quarter. Th is area basically covers properties north of Riv-er Road.

CBRE analyzes properties larger than 10,000 square feet and put the region’s overall vacancy rate at 17.7 percent. CoStar tracks all offi ce buildings and set the region’s vacancy rate at 12.2 percent. Despite a small second quarter occupancy loss of 23,347 square feet, some 68,000 square feet of offi ce space has been absorbed year-to-date.

“Tucson’s offi ce market remains stable, yet far from dynamic, due largely to limited job creation. Lease activity was dominated by renewals and relocations to upgrade qual-ity of space and location. Often, those were downsizing moves to more effi cient space,

driven by technology and reduced head count or consolidation,” said Rick Kleiner, a principal with Picor Commercial Real Estate Services.

“Th e pendulum still swings toward the tenant, with abundant concessions in the market,” he added.

Despite the glut of vacant offi ce space downtown, a six-story mixed-use project is being planned at 1 E. Broadway. Its intended main tenant is the Pima Association of Gov-ernments/Regional Transportation Author-ity in a 124,000 square-foot building.

To be developed by Robert Caylor Con-struction, the site also would feature apart-ments and street-front retail space. Caylor also owns the Chase Bank building next door at 2 E. Congress St.

Much of the sector’s brightest spotlight shifted to the east side where Tucson Medi-cal Center, 5301 E. Grant Road, is building a 200,000 square-foot addition known as the West Pavilion. Th e four-story state-of-the-art facility, set to open next April as part of a $109 million construction improvement pro-gram, is the fi rst multi-story hospital build-ing — outside of parking garages — since

BIZ FACTS

OFFICE SECTOR (2nd Quarter)•Vacancy rate 12.1% at 2011 4Q12.1% at 2012 1Q12.2% at 2012 2QAbsorption: Minus 23,347 square feet

• Largest building sale$575,000 for 4,382 square feet 400 W. Magee RoadSeller: Eichman Trust Buyer: Soofi a Rubbani

• Largest building lease19,457 square feetUniversity of Arizona Medical Center535 N. Wilmot Road

• Largest under construction 15,067 square feet1020 S. Harrison RoadHazen Enterprises

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some two-story structures were built in the late 1920s.

Tucson Orthopedic Institute will vacate a nearby building and lease the West Pavilion’s fi rst fl oor. Th at move and the expansion will open about 77,000 square feet of offi ce space at the health care cluster.

“Clearly, activity is strongest in the medi-cal sector,” said Kleiner.

Th e Tucson market’s total offi ce inven-tory now stands at 23.8 million square feet in 2,409 buildings, according to CoStar. Th ere are only 18 Class A offi ces in the sector.

At the end of the second quarter, the aver-

age quoted rate was $22.92 in Class A; $18.85 in Class B; and $14.96 in Class C. Quarter over quarter, rates in Class A and C increased slightly while Class B recorded a small de-crease.

Often referred to by industry insiders as “jobs in a box,” the offi ce sector was basically stable in the second quarter. Th e category’s fundamentals “have ceased deteriorating,” explained Kleiner.

“On the sales side, offi ce and medical offi ce properties still do not sell under tra-ditional investment criteria in this climate of gradual recovery. Most investor sales are

driven by distress, namely short sales and auction activity,” Kleiner added.

Looking ahead, as offi ce markets in larger western cities continue to improve, those gains should spill over into Southern Ari-zona. But since Tucson is a “tertiary, third-tier city, decisions aff ecting the local market here will be made after companies take care of their fi rst and second tier operations,” ex-plained associate broker Michael Gross of Tucson Realty & Trust.





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Retail’s invasion of the C-stores and Walmart

By Roger YohemInside Tucson Business

As the absorption of existing space runs at a modest pace, the retail race is being led by another base. New construction, raze and rebuild, expand by renovation, and gather the old to build-anew projects are heading the sector.

“We could easily call this the Wal-Mart invasion. Th at and the C-Stores (conve-nience). QuikTrip and Circle K are really aggressive right now. Th ey are assembling properties to get the larger sizes they need,”

said Pat Darcy, Tucson Realty & Trust execu-tive and retail specialist.

About two years ago, Wal-Mart Stores identifi ed the Tucson area as a market with many “under-served pockets of neighbor-hoods.” Since then, it has launched at least fi ve projects in various stages of develop-ment and planning.

Its largest is a new 156,000 square-foot supercenter at Th e Bridges, Kino Parkway and 36th Street, due to open later this year. In the 90,000 to 100,000 square-foot range, Walmart stores are being planned for 3413 E. Broadway in El Con Mall and on vacant land

RETAIL SECTORCOMMERCIAL REAL ESTATE

BIZ FACTS

RETAIL SECTOR (2nd Quarter)• Vacancy rate 8.4 % at 2011 4Q 8.6% at 2012 1Q 8.5 % at 2012 2Q Absorption: 74,762 square feet

• Largest building sale$9 million for 90,312 square feet 3390 S. Sixth Ave.Seller: Bankers Trust Buyer: Curacao Ltd.

• Largest building lease50,000 square feet 5545 E. BroadwayHobby Lobby

• Largest new building 9350 E. Golf Links Road37,470 square feetLA Fitness

• Largest under construction 156,000 square feetKino Parkway and 36th StreetWalmart Supercenter Walmart’s new supercenter opens at The Bridges this year.

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Walgreen’s is raising its retail profi le with a new store at Swan and Sunrise.

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at 2711 S. Houghton Road.And in June, Wal-Mart closed on 11 acres

of land for $2.97 million on the southwest corner of Houghton Road and MaryAnn Cleveland Way.

Razing and rebuilding is rocking at two outdated plazas. Portions of the Rolling Hills Shopping Center, 2550 S. Kolb Road, and Berkshire Village, at East Broadway and South Camino Seco, are being redeveloped as 40,000 square-foot Walmart Neighbor-hood Markets.

Th e region’s highest-profi le renaissance is in midtown where a new Stein Mart,

Hobby Lobby, Mattress Firm, and Vitamin Shoppe are reviving the northeast corner of East Broadway and Craycroft Road. Th e 7.4-acre site, last occupied by a Mervyn’s De-partment Store, is getting a total makeover from owners Benenson Capital Partners, New York.

Nancy McClure, CBRE fi rst vice president, brokered the deal that brought the four ten-ants into the long-vacant parcel. Stein Mart and Hobby Lobby will occupy the existing 81,000 square-foot building. Mattress Firm and Vitamin Shoppe will take part of a new free-standing, 14,500 square-foot pad. Some

retail space is still available on the pad.For the total retail category, the vacan-

cy rate dipped from 8.6 percent in the fi rst quarter to 8.5 percent in the second quarter. Absorption was 74,762 square feet, putting the year-to-date pace at positive net 37,896 square feet, according to CoStar Group.

“Positive is positive. Th e Tucson retail market did experience a slight increase in occupancy,” said Greg Furrier of Picor Com-mercial Real Estate Services. “Looking back over the past two years, vacancy has been hovering in the mid-eight percent range with only minor fl uctuation.”

COMMERCIAL REAL ESTATEAverage quoted rental rates ended the

quarter at $14.50 per square foot per year, 8 cents higher than the fi rst quarter. One year ago, CoStar reported the value was $14.89, or 2.6 percent higher.

With lease rates relatively fl at, “Retail-ers continue to move up to higher-quality locations, with tenants taking advantage of higher-traffi c locations with visibility near Tucson’s major malls,” Furrier said.

“Former Blockbuster locations continue to turn, with users such as urgent care cen-ters, restaurants, and mattress retailers ben-efi ting from these corner sites. Medical clin-ics and urgent care are also striking deals at competitive lease rates in shopping centers as landlords continue to solve vacancy is-sues,” he added.

Although progress is welcome, economic uncertainty continues to haunt the market. Tucson’s retail real estate recovery is being held back by slow local job growth, shaky consumer confi dence, credit rating down-grades and the Euro debt crisis. Politically, the nation is anxious about November’s presidential election

“We need to give credit to our local Mom and Pop tenants. Th ey’re working hard, found a niche, but are constantly battling national and regional tenants,” said Darcy. “We need to support them as much as we can.”

“For the most part, the second quarter saw an uptick in activity among small ten-ant and local merchants, which had been missing in recent periods. High asking rents within anchor space has made it diffi cult to entice large national retailers to Tucson,” said McClure of CBRE.

“Retailers have recently become more fl exible with their space requirements,” Mc-Clure added, “suggesting that the Tucson market is ripe with opportunity.”



QuikTrip is part of the C-store “invasion.”

Geo

rge

How

ard


CORPORATE REAL ESTATE SERVICES3709 N. Campbell Ave, Suite 201 | Tucson, AZ 85719 | 520.881.8180 | FAX 520.881.5844Contact us at 1.800.831.4090 or at www.cotlow.com | Dean P. Cotlow [email protected]

We’ll find what you’re looking for.Because we know the market.And we know the right people.And we’re watching.Carefully. Intently. Constantly.

We’ll find what you’re looking for.Because we know the market.And we know the right people.And we’re watching.Carefully. Intently. Constantly.


WEB CONTENT PRODUCER NEEDED!

The Tucson Weekly and Inside Tucson Business are looking for a person to lead our new media eff orts. Our Web Producer will:

• Under the direction of the editors and the publisher, take the lead on the day-to-day management of all of Territorial Newspapers’ various Web projects, including InsideTucsonBusiness.com and TucsonWeekly.com. A high priority is placed on constant updates on all online and social media platforms.

• Work with writers, editors, photographers and designers to develop Web-exclusive content.

• Develop Web-exclusive content for the Territorial Newspapers’ websites. This will require making contacts in the community, keeping up with local happenings and simply being the fi rst to know everything relating to Tucson.

Some days this person will be covering breaking news and reporting online. On other days, will involve browsing the Internet for Tucson content. On other days, it will involve long-term planning for our Websites.

Consideration will go only to those who have writing and reporting experience in addition to the necessary technical skills. The ideal candidate will have a wide variety of experience doing Web development; have knowledge of basic HTML; be familiar with various website and social-networking platforms; and be fantastic at working with people. A working knowledge of Adobe Photoshop and Indesign is a plus, as is video-editing experience. This is a full-time position, with benefi ts.

The deadline for applications is 5 p.m., Wednesday, Aug. 15.

Please send a cover letter, a resume and links to work samples to [email protected] or [email protected].

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FINANCEYOUR MONEY

Make the right fi nancialmoves in your marriage

Marriage aff ects how you build wealth, pay taxes and plan your estate. It’s impor-tant to make the right moves, especially at the beginning.

When you and your spouse plan your fi nances, your focus is likely to span careers, lifestyle issues, family, wealth man-agement and virtually every element of your life as a couple.

Sophisticated planning can enhance your progress in these and other areas from the start.

Protect your assetsAs a fi rst step, understand your options

for protecting assets that each of you brings to the marriage.

• Decide whether a prenuptial agree-ment is appropriate. If one or both of you have an interest in a business, an inheri-tance or other substantial assets, there may be compelling reasons for maintaining those assets separately.

Th is is especially true in community property states, where property may be divided evenly in the event of a divorce, regardless of how it came into the mar-riage.

• Review the benefi ciary designations on your insurance policies, banking and investment accounts and retirement plans. A benefi ciary designation is important because it can override the terms of a will.

With an employer-sponsored retirement plan, you may be required to name your spouse as benefi ciary unless your spouse waives this right in writing.

Create a budgetAgreeing on short-term cash manage-

ment can go a long way toward assuring that mutual goals are met.

• Build a budget. Even if you did not have a formal budget prior to marriage, creating one now will help you and your partner get a clear picture of where you stand fi nancially.

• Determine how you will pay debt incurred before you got married. Generally speaking, debt incurred prior to marriage remains the legal obligation of the person who took out the loan.

But if the loan is secured by jointly held assets, such as a car, it can get more complicated.

• Envision your desired lifestyle fi ve or ten years into the future. If a larger home, a

family or your own business is in the picture, start budgeting now to make these goals happen.

Review your investments

Adequate diversifi cation could help you

build wealth and manage the short-term volatility of the fi nancial markets, even though it may not assure success.

• Review your joint fi nancial assets, both retirement and nonretirement. Also consider real estate if either of you owns a primary residence or a vacation home.

• You may not be adequately diversifi ed if your assets mirror one another. Consider the diversifi cation available through mutual funds and professionally managed accounts, and think beyond traditional asset classes such as stocks and bonds.

Plan for the futureRetirement saving, life insurance and

estate planning are important, even if these areas are not your immediate focus.

• Make investing for retirement a priority. If both of you are employed and have access to employer-sponsored retirement plans, you each can contribute a maximum of $17,000 for 2012.

• Th ere are several types of trusts that an estate planning attorney can review with you.

A living trust allows the grantor (the owner of the assets) to remain both a trustee and benefi ciary of the trust while he or she is alive. Upon the grantor’s death, a successor trustee manages or distributes the remaining assets.

When philanthropy is part of the picture, consider a charitable lead trust or a charitable remainder trust.

You and your spouse are at a critical juncture in your joint fi nancial life. Contact your Financial Advisor to help you make the most of it.

Contact W. David Fay, a second vice

president in wealth management and

fi nancial advisor with Morgan Stanley Smith

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

thefaymillergroup or (502) 745-7069.

W. DAVID FAY

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

Company Name Symbol Aug. 8 Aug. 1 Change52-Week

Low52-Week

HighTucson companiesApplied Energetics Inc AERG.OB 0.04 0.05 -0.01 0.03 0.50CDEX Inc CEXIQ.OB 0.02 0.01 0.01 0.01 0.10Providence Service Corp PRSC 12.59 12.31 0.28 8.35 15.94UniSource Energy Corp (Tucson Electric Power) UNS 41.07 40.15 0.92 33.98 42.10

Southern Arizona presenceAlcoa Inc (Huck Fasteners) AA 8.74 8.43 0.31 7.97 12.93AMR Corp (American Airlines) AAMRQ 0.50 0.51 -0.01 0.20 3.94Augusta Resource Corp (Rosemont Mine) AZC 2.23 1.83 0.40 1.48 4.30Bank Of America Corp BAC 7.72 7.22 0.50 4.92 10.10Bank of Montreal (M&I Bank) BMO 57.45 57.11 0.34 50.95 62.80BBVA Compass BBVA 7.06 6.73 0.33 5.30 9.94Berkshire Hathaway (Geico, Long Cos) BRK-B* 84.67 84.62 0.05 65.35 86.01Best Buy Co Inc BBY 19.99 18.07 1.92 16.97 28.53BOK Financial Corp (Bank of Arizona) BOKF 58.90 55.76 3.14 43.77 60.00Bombardier Inc* (Bombardier Aerospace) BBDB 3.76 3.60 0.16 3.30 5.45CB Richard Ellis Group CBG 18.01 16.67 1.34 12.30 21.16Citigroup Inc C 28.95 26.78 2.17 21.40 38.40Comcast Corp CMCSA 34.35 33.55 0.80 19.46 35.16Community Health Sys (Northwest Med Cntrs) CYH 24.43 24.48 -0.05 14.61 28.79Computer Sciences Corp CSC 29.85 24.50 5.35 22.19 33.80Convergys Corp CVG 15.72 15.03 0.69 8.49 15.83Costco Wholesale Corp COST 95.56 95.94 -0.38 70.22 97.76CenturyLink (Qwest Communications) CTL 41.76 42.12 -0.36 31.16 42.70Cvs/Caremark (CVS pharmacy) CVS 45.21 44.84 0.37 31.79 48.69Delta Air Lines DAL 9.48 9.48 0.00 6.60 12.25Dillard Department Stores DDS 71.45 65.32 6.13 38.99 72.46Dover Corp (Sargent Controls & Aerospace) DOV 56.36 53.95 2.41 43.64 67.20DR Horton Inc DHI 17.89 17.27 0.62 8.03 19.35Freeport-McMoRan (Phelps Dodge) FCX 35.65 33.49 2.16 28.85 48.96Granite Construction Inc GVA 25.93 24.91 1.02 16.92 30.49Home Depot Inc HD 52.66 51.68 0.98 28.32 54.28Honeywell Intl Inc HON 58.99 58.00 0.99 41.22 62.00IBM IBM 199.31 195.18 4.13 157.13 210.69Iron Mountain IRM 33.23 32.34 0.89 27.10 34.77Intuit Inc INTU 59.44 57.93 1.51 39.87 62.33Journal Communications (KGUN 9, KMXZ) JRN 5.80 5.51 0.29 2.69 5.85JP Morgan Chase & Co JPM 37.27 36.00 1.27 27.85 46.49Kaman Corp (Electro-Optics Develpmnt Cntr) KAMN 32.92 31.62 1.30 25.73 35.86KB Home KBH 10.04 9.20 0.84 5.02 13.12Kohls Corp KSS 52.23 49.73 2.50 42.14 56.66Kroger Co (Fry's Food Stores) KR 22.68 22.20 0.48 20.98 24.83Lee Enterprises (Arizona Daily Star) LEE 1.25 1.20 0.05 0.49 1.81Lennar Corporation LEN 30.33 28.97 1.36 12.14 31.90Lowe's Cos (Lowe's Home Improvement) LOW 26.15 25.14 1.01 18.07 32.29Loews Corp (Ventana Canyon Resort) L 40.52 39.45 1.07 32.90 41.80Macerich Co (Westcor, La Encantada) MAC 57.42 58.17 -0.75 38.64 62.83Macy's Inc M 38.04 35.06 2.98 22.66 42.17Marriott Intl Inc MAR 37.51 36.35 1.16 25.49 40.45Meritage Homes Corp MTH 35.67 34.57 1.10 13.68 38.16Northern Trust Corp NTRS 46.18 45.05 1.13 33.20 48.31Northrop Grumman Corp NOC 67.88 65.84 2.04 49.20 67.96Penney, J.C. JCP 21.26 21.02 0.24 19.06 43.18Pulte Homes Inc (Pulte, Del Webb) PHM 11.97 11.04 0.93 3.29 12.19Raytheon Co (Raytheon Missile Systems) RTN 55.60 54.91 0.69 38.35 56.92Roche Holdings AG (Ventana Medical Systems) RHHBY 44.67 44.14 0.53 36.50 46.40Safeway Inc SWY 15.92 15.58 0.34 14.73 23.16Sanofi -Aventis SA SNY 41.53 40.45 1.08 30.98 42.30Sears Holdings (Sears, Kmart, Customer Care) SHLD 53.36 48.54 4.82 28.89 85.90SkyWest Inc SKYW 8.28 6.55 1.73 6.25 14.32Southwest Airlines Co LUV 9.09 9.18 -0.09 7.15 10.05Southwest Gas Corp SWX 43.64 44.23 -0.59 33.09 46.08Stantec Inc STN 32.12 28.40 3.72 20.96 32.79Target Corp TGT 62.91 60.62 2.29 46.61 62.18TeleTech Holdings Inc TTEC 16.45 15.95 0.50 14.04 18.66Texas Instruments Inc TXN 29.23 27.63 1.60 24.34 34.24Time Warner Inc (AOL) TWX 42.26 39.60 2.66 27.62 42.26Ual Corp (United Airlines) UAL 18.05 18.17 -0.12 15.51 25.84Union Pacifi c Corp UNP 122.01 121.59 0.42 77.73 126.91Apollo Group Inc (University of Phoenix) APOL 28.22 26.63 1.59 25.77 58.29US Airways Group Inc LCC 10.34 10.83 -0.49 3.96 14.51US Bancorp (US Bank) USB 33.08 33.32 -0.24 20.10 34.10Wal-Mart Stores Inc (Wal-Mart, Sam's Club) WMT 74.49 73.62 0.87 48.31 75.24Walgreen Co WAG 36.12 36.27 -0.15 28.53 37.61Wells Fargo & Co WFC 33.79 33.90 -0.11 22.58 34.80Western Alliance Bancorp (Alliance Bank) WAL 9.61 8.97 0.64 4.44 9.92Zions Bancorp (National Bank of Arizona) ZION 19.04 18.28 0.76 13.18 22.81Data Source: Dow Jones Market Watch

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


INSIDE REAL ESTATE & CONSTRUCTION

By Roger YohemInside Tucson Business

Like an annoying, amateur drummer, with one hand banging out a faster rhythm while the other plays a slower beat, July resi-dential foreclosures continued to be out of sync, Trustee’s notices still far outpace sales of distressed homes.

According to the Pima County Recorder’s Offi ce, foreclosure notices totaled 797 for the month, bringing the year-to-date total to 6,164 (see chart). Th at is 12 percent more than the 5,513 notices issued during the fi rst seven months of 2011.

Meanwhile, sales of distressed homes are down about 1,300 for the same compar-ative months. Th e 20 percent drop is signifi -cant, slowing to 3,252 sales this year from 4,549 last year.

Ginger Kneup, owner of Bright Future Real Estate Research, expects the numbers to continue in opposite directions until year-end.

“Th ere are still a lot of distressed homes out there, people who have stopped paying their mortgages but haven’t received notic-es yet. Th ey are simply not that far into the foreclosure process,” Kneup said.

A trustee’s notice, notifying owners their property is in default and scheduled to be sold at a public auction, is the fi rst step in the foreclosure process.

Comparatively, trustee’s notices are av-eraging 881 per month this year, up from 786 notices in 2011.

Diverse factors “complicate the reality” of where the distressed housing market is headed. Kneup believes more short sales are now in play, banks are shifting their ap-proaches to delinquencies, and shadow in-ventory remains an unknown.

“We hope notices drop by the end of the third quarter,” Kneup said. “I now expect the volume will not accelerate further but the year-end number will be higher.”

Sundt is decade’s bestSundt Construction has been named one

of the “100 Best Arizona Companies of the Decade” for its workplace performance with employees. Mesa-based business consul-tant BestCompaniesAZ honored the fi rm for its quality employee-centered policies and programs.

“We believe it is our people who make the diff erence,” said Richard Condit, chief administrative offi cer for Sundt. “We know if we keep our employees happy, they in turn, will work hard to keep our customers happy. We are grateful to be honored among other Arizona companies dedicated to cre-ating great workplaces and maintaining the highest performance standards.”

Sundt Companies, 2015 W. River Road, has subsidiary Sundt Construction in Tem-pe. Th e contractor was recognized for its employee benefi ts, employee stock owner-ship plan, and its Sundt Foundation, a sepa-rate non-profi t organization that helps dis-advantaged children and adults.

Foreclosures and distressed sales out of sync

THE PULSE: TUCSON REAL ESTATE

7/30/2012 7/23/2012

Median Price $137,900 $140,100Active Listings 4,085 4,091New Listings 342 306Pending Sales 364 411Homes Closed 245 235Source: Long Realty Research Center

WEEKLY MORTGAGE RATES

Program Current Last WeekOne

Year Ago12 Month

High12 Month

Low

30 YEAR 3.50% 3.75%APR 3.50% 3.75%APR 4.95% 4.95% 3.50%

15 YEAR 3.00% 3.125%APR 3.00% 3.125% APR 4.22% 4.22% 3.00%

3/1 ARM 2.88% 3.125%APR 2.88% 3.125% APRThe above rates have a 1% origination fee and 0 discount . FNMA/FHLMC maximum conforming loan amount is $417,000 Conventional Jumbo loans are loans above $417,000

Information provided by Randy Hotchkiss Peoples Mortgage Company, P.O. Box 43712 Tucson, AZ 85733. (520) 324-0000. MB #0905432. Rates are subject to change without notice based upon market conditions.

8/7/2012

Pima County Recorder’s Offi ce data

Notices of Trustees Sales Pima County Recorder Foreclosures

2007 2008 2009 2010 2011 2012Jan. 346 699 882 863 975 705Feb. 276 598 1,016 982 762 918March 305 661 1,154 1,089 948 904April 300 700 1,093 985 721 910May 396 720 991 890 748 984June 377 742 1,002 862 693 946July 419 721 1,063 1,111 666 797Aug. 503 814 1,130 1,067 917 Sept. 394 782 1,008 1,090 797 Oct. 483 921 948 1,019 816 Nov. 540 675 859 829 754 Dec. 475 923 1,038 876 636 Total 4,814 8,956 12,184 11,663 9,433 6,164 Mo. avg. 401 746 1,015 972 786 881

Sundt’s roots go back more than 120 years to a small construction company that was started in New Mexico by Mauritz Mar-tinsen Sundt, a Norwegian immigrant. Th e company moved to Tucson in 1929 and is now owned by its 1,300 employees.

Hamstra’s top techs“NATE” knows Tucson’s Hamstra Heat-

ing & Cooling well because the company now has the most NATE-certifi ed techni-cians in Arizona. NATE stands for North American Technical Excellence and is the nation’s highest heating, cooling and venti-lation certifi cation program.

Hamstra Heating & Cooling, 2035 E. 17th St., has 22 NATE-certifi ed technicians and four Building Performance Institute resi-dential energy building science experts. Founded in 1983 by Glenn Hamstra, the third-generation company is now run by sons Jeff Hamstra, David Hamstra and grandson Wade Hamstra.

RTA digs Grant RoadTh e fi rst shovel of dirt has been turned in

the Regional Transportation Authority’s $200 million, fi ve-mile Grant Road widen-ing project. In Phase I, reconstruction of the Grant Road/Oracle Road intersection is un-derway.

Th is phase will widen Grant Road to six lanes from 15th Avenue to Castro Street. Turning lanes and medians also will be re-confi gured at the intersection.

Th e lead contractor is Tucson-based Fal-cone Brothers & Associates, which special-izes in highways, streets and bridges. Th e $7.5 million project will take about one year to complete. Construction along the Grant Road corridor will continue through 2026.

Sales and leases• John R. McDade II purchased a 10,772

square foot offi ce-showroom at 3650 N. Or-acle Road for $625,000 from Th ree Dog Dancer LLC, represented by Stephen Co-hen, Russell Hall and Patrick Welchert with Picor Commercial Real Estate Services. Th e buyer was represented by Brandon Rodgers, also with Picor.

• 1-800-Pack-Rat LLC leased 13,879 square feet at 2430-2460 N. Flowing Wells Road, Units A and B, from German Ustariz. Th e transaction was handled by Chuck Blacher, Tucson Realty & Trust.

• Wal-Mart leased 3,520 square feet at 1010 E. Palmdale St. from Foothills Busi-ness Ventures, represented by Gary Emer-son, GRE Partners. Th e tenant was self-rep-resented.

• Alphagraphics leased 2,700 square feet at 4811 E. Grant Road in Crossroads Festival from Larsen Baker, self-represented by Andy Seleznov.

• Dyson Dermatology leased 2,697 square feet at 2141 N. Beverly Ave. from TMC Holdings, represented by Tom Knox of Picor. Th e tenant was represented by Da-vid Montijo, CBRE.

• Select Comfort Retail Corp. leased 2,500 square feet at 4500 N. Oracle Road from BP Th ackeray Investors LLC, repre-sented by Alan Tanner, CBRE.

• Dental Village leased 2,400 square feet at 3908 E. Grant Road from Grant Alvernon Realty Trust, represented by Greg Furrier, Picor Commercial Real Estate Services.

• Southern Arizona Restaurant Com-pany doing business as Smashburger leased 2,300 square feet at 4821 E. Grant Road from Crossroads Canada LLC. Th e tenant was represented by Greg Furrier of Picor.

• EV Gourmet International Cuisinedoing business as Tapas Fusion leased 2,297 square feet at 2800 N. Campbell Ave. in Campbell Plaza from Camelback Corpo-rate Center Joint Venture LLC, represented by Nancy McClure, CBRE. Denise Yardy, Long Business Brokerage, represented the tenant.

• Rural/Metro Corporation leased 1,162 square feet at 2224 N. Craycroft Road, Suite 105 from U.S. National Bank Association, represented by Rick Kleiner with Picor.

• Chris Bubany Studio leased 1,044 square feet at 6530 E. Tanque Verde from La Plaza Shoppes, represented by David Car-roll of Romano Real Estate Corporation.

• Mark Heltemes State Farm Insuranceleased 980 square feet at 18805 S. I-19 Front-age Road A-109 in Sahuarita from Sunlife Assurance Company of Canada, represent-ed by Greg Furrier and Rob Tomlinson of Picor.

Email news items for this column to

[email protected]. Inside Real Estate &

Construction appears weekly.


I’m thinking local government offi cials ought to seriously consider publishing a Tucson regional supple-ment to the Arizona Driver License Manual — if only to help alleviate confusion to the array of left-turn options drivers are given here.

Tucson drivers are about to be introduced to yet another — a third — style of left turns. And here you thought there was only way to make a left turn.

Not content to leave things as they are in most other cities where traffi c lights signal a green left turn arrow at the beginning of a phase, several years ago Tucson’s traffi c engineers introduced the “lag left turn” in which the green arrow comes at the end of the cycle.

I’ll admit that when they were fi rst introduced, I thought it seemed like a good idea. If you could safely make a left without the green arrow so much the better but it was there if you needed it.

Come to fi nd out there are two reasons lag left turn traffi c signals weren’t adopted in most other places.

First, intersections with lag left-turn lights tend to have more crashes because they’re confusing to drivers. Second, the lag left-turn signals screw up traffi c fl ow and make signal synchro-nization virtually impossible.

As if we ever had synchronized traffi c signals in Tucson. Oh, there were those few years in the 1980s when Pima County tried it on Ina Road but they could never fi gure it out right.

And now version number three for how to make a left turn is called a “Michigan Left Turn,” apparently so named because they were introduced in Michigan in the 1960s.

Th ere’s no reason to get too excited just yet. Work only began last month on the road where they will be implemented, Grant from Oracle to Swan roads. Th e project is going to take 14 years to be completed. Just the fi rst phase of the project, widening the Grant and Oracle intersection, is going to take a year.

Once installed, drivers traveling east and west on Grant Road will no longer be able to make left turns directly on to major cross thoroughfares. Instead, the Michigan Left Turn entails drivers traveling straight through the intersection to the next cross street where they will make U-turn and then double-back to make a right turn on to the thoroughfare.

I’m not doing this justice in words and our friends at the Regional Transportation Authority (RTA) have put together a 4 minute and 11 second video demonstrating the maneuver, which can be found here: www.grantroad.info/left_turn_video.htm .

Among the features that must be incorporated into the design of these Michigan Left Turns is providing enough room for semi-trucks to make the U-turn and that means more right-of-way.

Supposedly there are some sound arguments in favor of these kinds of left turns. Th ey allow for more through traffi c at intersections by eliminating the traffi c light phase for left turns.

Th at’s well and good but don’t you wonder if they were really so good, why are they still called Michigan Left Turns? Shouldn’t they be everywhere?

Contact David Hatfi eld at dhatfi [email protected]

or (520) 295-4237.

EDITORIAL

DAVID HATFIELD

BIZ BUZZ

From here to there,by way of Michigan

EDITORIAL

Tucson Forward sets Tucson backEver hear of a group named Tucson Forward?We aren’t surprised if you haven’t. But Tucsonans

might be surprised to learn that decision-makers at the Pentagon are under an impression the group represents the majority view here.

Th is month those decision-makers picked Luke Air Force Base in Glendale to be the new pilot training center F-35 fi ghter jets.

And with that decision, the Tucson region lost out on up to $125 million in federal funds for construction-related projects, 1,000 direct and indirect permanent jobs and $17 million that would come in to local governments from tax revenues.

So who or what is Tucson Forward? A misnomer for sure. And thanks to a “media blackout” — their term, not ours — they’ve managed to wage their campaign without scrutiny or much public attention.

Even the group’s original public notifi cation for its articles of incorporation as a non-profi t were published in Maricopa County in the Record Reporter, a three-day-a-week publication printed on 8½-by-11-inch paper that has a total circulation of 61, according to the Arizona Newspaper Association’s annual directory.

According to fi lings with the Arizona Corporation Commission, Tucson Forward was founded in June 2011 with an original board of directors of just one person, a Jessica Rafka, who listed her occupation as an editor for her own fi rm, Contemplative Editing. Paperwork fi led this year shows that she resigned in April, at which time the group’s address was changed from a house on Tucson Boulevard between Grant Road and Glenn Street to a post offi ce box.

Currently, all of the other directors of Tucson Forward list addresses in midtown with one thing in common: Th ey live under or near the regular fl ight path to aircraft landing at Davis-Monthan Air Force Base.

Much of the correspondence from Tucson Forward this year came over the signature of Mary Terry Shiltz, president of the board of directors. Shiltz is also the

president of the Broadmoor-Broadway Village Neighbor-hood, an area of approximately one-quarter square mile.

Over the years, Shiltz other campaigns have included an unsuccessful run for a seat on the Tucson Unifi ed School District governing board in 1996 and vice president of the Pima Association of Taxpayers.

From their addresses, Shiltz and the other directors of Tucson Forward have obvious reasons for their concerns: they don’t like Davis-Monthan Air Force Base, even if it has been there since 1927. And never mind that the proposal for the F-35s was to locate them at the Air Guard’s 162nd Fighter Wing at Tucson International Airport.

Indeed, Tucson Forward’s celebration over the decision that the F-35s will go to Glendale seems to be short-lived. According to its website, the group is mounting a full-scale eff ort to fi ght a program at Davis-Monthan called Operation Snowbird that trains pilots from allied nations here.

Tucson Forward is classic Tucson decision-making: nothing can be allowed to change even if romantic recollection no longer exists. Despite its near-invisible public profi le, it was allowed to portray itself as carrying an opinion representative of the region as a whole.

Interesting that just last week, Mayors Satish Hiremath of Oro Valley, Ed Honea of Marana and Duane Blumberg all signed their names to an opinion column in Inside Tucson Business encouraging support for the F-35 coming here. Where were the elected leaders of Tucson or Pima County? Certainly not showing themselves to be leaders.

Were they complicit in Tucson’s loss by their lack of support?

If, as the Air Force hopes, the F-35 program contin-ues to grow there will be other opportunities to locate a training facility in Tucson.

When that happens, Tucson must let the Pentagon and other decision makers know where the majority stands.


OPINIONWAKE UP, TUCSON

Don’t take our word, these rankings speak for themselves In recent weeks you’ve had an opportu-

nity to read on the opinion pages of Inside Tucson Business a debate between our interpretation of the state of business and the economy in Pima County versus the election year version put forth by the county itself.

Th e journey to turning around this county starts fi rst with admitting there are some serious problems. Ignoring these issues will bring more of the same.

We love this place but think political decisions and lack of a clear direction has left the Tucson region looking in the rear-view mirror on what could have been.

Pima County has been run by a three-person majority, Democratic-controlled Board of Supervisors for more than a decade and a half and the results speak for themselves.

Don’t take our word for it let the rankings speak for themselves:

Contact Joe Higgins and Chris DeSimone at [email protected]. Th ey host “Wake Up Tucson,” 6-8 a.m. weekdays on Th e Voice KVOI 1030-AM. Th eir blog is at www.TucsonChoices.com.

ADVOCATING FOR BUSINESS

Rx for city and county goverments: New attitudesI do a lot of listening. In my business, it

pays to inquire and discover.Over the past 45 days, I have been on a

formal “listening tour” that is part of the Tucson Metro Chamber’s mission to promote a stronger local economy and create more jobs.

Th is most recent tour included 14 stops with members of the Tucson City Council, mayors of all metro municipalities, the Tuc-son city manager, members of the Pima County Board of Supervisors and the county administrator. I asked a lot of questions.

I was especially interested in hearing reactions to a startling statistic presented by economists Marshall Vest and Gerald Swanson from the University of Arizona’s Economics and Business Research Center at their mid-year economic forecasting event.

One of the stats in their presentation really hit home: Since August 2010, the state of Arizona has created 75,000 new jobs. More than 69,000 of those jobs were created in the Phoenix metro area. Just 800 were created in the Tucson metro area.

When asked for comment, only a few seemed genuinely interested. Some just shrugged. Some wanted to delve into research methodology (as though the wide-

ly respected Vest and Swanson didn’t present reliable research).

Th e exceptions were the townships surrounding Tucson. Th ere I heard about specif-ic plans for thoughtful yet aggressive

development of their communities and their respective economies.

Th e townships have strategic plans. Th ey have teams of customer-centric public offi cials prepared to embrace new business opportunities and serve anyone with an interest in bringing commerce and jobs to their locale. Th ey have dreams about their future and articulate them with ease.

Th ese plans include specifi c measurable performance outcomes, identify the responsible parties and have timelines. Th e attitude of progress is palpable.

To be fair, Tucson and Pima County governments have taken steps intended to promote economic development. Credit should be given where it is due. But the passion is missing.

We need an “all-in” level of enthusiasm to get leaders, department heads and staff at the city and county revved up about growing jobs and promoting a higher level of commerce. Business goes where it is welcomed. A bear hug sends a diff erent message than a pat on the head.

In his best-selling book “Th e Coming Jobs War,” author and chairman of the Gallup Research Corporation James Clifton warns us about the urgency of making economic development and jobs top priorities: “Th e jobs war is what should get city (and by extension county) leaders up in the morning, what they should work on all day and what should keep them from getting to sleep at night”

Cities need to develop a job growth attitude, align their local forces and declare an all-out war.

1. Recognize that the most important solutions are local. Weak local leaders will look to Washington for solutions.

2. Th e entire city must wage a war for jobs.3. Align eff orts city-wide and include

local tribal (business) leaders.4. Don’t allow your local constituencies

to look to Washington, D.C. Free money eventually makes you more dependent.

Clearly, what is needed at Tucson City

Hall and in Pima County government is a new attitude. Th e small steps they have taken to demonstrate connection to economic development and jobs are appreciated, but few are convinced they are doing all they can.

Economic development isn’t something that should be “tolerated.” It must be embraced! Over the years, Tucson lost opportunities with Motorola, IBM, Major League Baseball and Raytheon Missile Systems because of less-than-passionate attention to those opportunities.

It is time for an attitude adjustment.Let’s end on a high note. I am a big fan

of Dr. Martin Luther King. One of his best quotes was: “A nation or civilization that continues to produce soft-minded men purchases its own spiritual death on the installment plan.”

I submit that an economic death can be purchased on the same plan.

Contact Mike Varney, president and

CEO of the Tucson Metro Chamber, at

[email protected] or (520)

792-2250. His Advocating for Business

column appears monthly in Inside Tucson

Business.

MIKE VARNEY

JOE HIGGINS

CHRIS DeSIMONE


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

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Twitter Followers: 4,167

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Yes, 59% No, 41%

Do you support extending Sabino Canyon Road south

to Kolb Road?

Next week’s poll: Should the City of Tucson and Pima County have done more to attract the F-35 pilot training base?

OPINIONGUEST OPINION

Rodney King may have said it best: ‘Can’t we all just get along?’ When it comes to regional planning, the

answer all too often seems to be that we cannot – or that we do not. Witness recent squabbles between Tucson and Pima County related to roadway capacity, design and annexation.

In its 2030 transit plan, the county had $73 million budgeted for the segment of River Road from Pontatoc to Sabino Canyon roads.

In its 2040 plan, that project had disappeared, despite the fact that no work had been done to alleviate the undeniable capacity issue that exists on that stretch of roadway. Th e stated reason for the removal was that other projects were of a higher priority. Th e suspected reason is that the decision could be used to leverage opposi-tion to annexation of a part of the segment.

Finding himself unable to get permits from the county for a sizable development in one corner of the intersection of Craycroft and River roads, a developer turned to the city and off ered to be annexed in exchange for construction permits.

So last month, the city council voted 6-1 to approve annexing the southeast corner of that intersection. Mind you, we did not

annex any portion of River Road. We took the develop-able property and left the transit issue to the county to fi gure out.

Th e losers are the residents who live in the area, and who travel that stretch of road.

Th ey were not served well by the vote to an-nex, nor had they been served well by the failure of the county to have earlier addressed the issue of gridlock along that roadway.

Now a similar situation is playing itself out in the Kolb-Valencia roads area. Th e county is considering transit solutions to a capacity issue that are at odds with the proposed development of a retail and housing project there. Th e developer is considering annexation simply to avoid having to work with the county. Th e city will again have an opportunity to either pick up some taxable space and leave the transit issue to the county to fi gure out, or do the right thing and begin to work

corroboratively across jurisdictions and sort out the issue prior to annexing.

Th ese are just two examples of where Tucson and Pima County — and toss in the Regional Transportation Authority (RTA) for good measure — fi nd themselves at cross purposes, unable or unwilling to sort out diff erences that would refl ect a good greater than their own parochial interests. Th is speaks to the inability of our jurisdic-tions to come together and work out issues that have regional implications.

Th e Craycroft-River vote was viewed by some as a victory for the city over the county. Th e criticism I received from some locals who are invested in the results of this year’s Board of Supervisor elections was quick and openly political. I had supported the county. How dare I?

Th at reaction speaks to the fact that far too often our decisions are motivated not by the desire to drop labels and work for broad solutions, but refl ect a zero sum opportunity to win one. When that motivation carries the day, taxpayers lose.

In reaction to the Craycroft-River annexation, I have invited members from county and city governments, the RTA, the developer, surrounding residents, two

supervisorial districts and one council ward to come and break bread together to work towards a solution that will hopefully serve as a model.

What will we be modeling if the meeting is a success? Th e ability to set aside diff erences that too often leave one jurisdiction or the other cleaning up a mess created by pure political maneuvering. We need to be better than that, or the commu-nity loses.

Th at meeting will be held beginning at 4 p.m. Th ursday (Aug. 16) at the Tucson Ward 6 Council offi ce, 3202 E. First St. Th e aff ected residents already plan to come out in force to show the electeds and staff they’re tired of the inability of pols and bureaucrats to fi nd solutions. Join us if you’d like to. Th e words of Rodney King — Can’t we all just get along? —will be the basis for moving the dialogue forward.

Contact Tucson City Councilman Steve

Kozachik, who represents mid-town Ward 6, at


STEVE KOZACHIK


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