SUMMER FALL 2012 2013
THE REGION’S BUSINESS MAGAZINE
WHY THE WORLD
Meet New UA President
VISITS TUCSON NEW BRAND
FOR REGION’S $2.4 BILLION TOURISM INDUSTRY
+
GLOBAL VISIONARY: PROFESSOR HSINCHUN CHEN Rx FOR ECONOMY: NEW DIAGNOSTICS STRATEGY WORLD’S LARGEST TATTOO MAKER
www.BizTucson.com
Will you get there?
Lock-Griffith Group at Morgan Stanley
How do you envision your retirement?
Investors and their beneficiaries may benefit from a clearly defined Investment strategy to guide present and future investment decisions. www.morganstanley.com/fa/lockgriffithgroup
Marc H. Lock
Senior Investment Management Consultant Senior Vice President Financial Planning Specialist Financial Advisor marc.h.lock@morganstanley.com
Wayne F. Griffith, CFP®
Senior Investment Management Consultant First Vice President Financial Advisor wayne.f.griffith@morganstanley.com
Helping clients manage investment decisions since 1986. 5255 East Williams Circle Suite 5000, Tucson, AZ 85711
520.745.7038
Morgan Stanley Smith Barney LLC, member SIPC. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
BizLETTER Why The World Visits Tucson
4 BizTucson
<<<
Summer 2013
Summer 2013
Volume 5 No. 2
Publisher & Owner
Steven E. Rosenberg Brent G. Mathis
Creative Director Photo: Steven Meckler
Tourism pumps $2.4 billion a year into Southern Arizona’s economy. Marketing this destination is big business. We’re known worldwide for the spectacular desert and rugged mountains that surround us – not to mention 350+ days of sunshine. Add to that our array one-of-a-kind experiences and you have an authentic tourist mecca. Think world-class accommodations, outdoor adventure, cuisine, cultural heritage, iconic attractions and only-inTucson events sure to inspire even the most seasoned traveler. It’s all in our backyard. For the past year, the convention and visitors bureau now known as Visit Tucson conducted extensive research to discover what specifically draws people to Tucson – with input from tourism stakeholders, Tucson tourists and travelers who have yet to visit. The next step was developing a brand architecture to shape the future of tourism marketing for the next decade. Visit Tucson’s President & CEO Brent DeRaad, a widely respected tourism executive, and Michael Luria, Visit Tucson’s board chair and longtime Tucson businessman, led this communitywide collaborative process. The process itself was remarkable. First, an all-star selection committee unanimously chose MMGY Global, a best-in-class branding and marketing firm. After months of comprehensive research and analysis, key components of our brand essence were presented, along with the idea that you could Free Yourself in Tucson. That resonated with the entire room of tourism stakeholders. There was enthusiastic consensus. “This is going to pay big dividends for Tucson in the future,” said Loews Ventana Canyon’s Managing Director Brian Johnson. An influential participant, he was impressed with DeRaad’s commitment “to take the time and do this the right way.” Discover Tucson’s DNA. Read the BizTucson Special Report on the rebranding of destination Tucson, with insightful articles by freelance journalists Edie Jarolim, Joan Liess and others. I think you’ll agree that the opportunity to grow this industry is unlimited – and critically important to our economic future. Hats off to “Coach” Donna Kreutz, who led BizTucson’s tourism team to produce the in-depth section that begins on p. 67. This edition features other reports that tie into our theme of why the world
visits Tucson. Every spring, the Global Retailing Conference draws industry icons and executives, as well as local students. It’s presented by the Terry J. Lundgren Center for Retailing at the University of Arizona – named for the UA alum who is Macy’s president & CEO. Tara Kirkpatrick writes about this “Super Bowl of Retail.” Tucson tourists chill in water features designed by Aqua Design International, including dramatic pools at The RitzCarlton, Dove Mountain, JW Marriott Starr Pass Resort and Casino Del Sol Resort, Spa and Conference Center. This local firm also designs for clients around the globe. See Christy Krueger’s Spectacular Splashables. Already a bioscience hub, this region could attract more research companies by focusing on the emerging niche of medical diagnostics. Dan Sorenson highlights a new study produced by Dr. Raymond L. Woosley for Tucson Regional Economic Opportunities. Recent research breakthroughs offer hope to halt the progression of the rare NP-C disease that claimed three of Dr. Michael and Cindy Parseghian’s children. Read Gabrielle Fimbres’ compelling update. The future also looks bright at The University of Arizona Health Network with new President & CEO Dr. Michael Waldrum at the helm. Fimbres interviews this physician with Impeccable Credentials + A Solid Track Record. At Tucson Medical Center, a $200 million campus improvement project culminates with the opening of the orthopaedic and surgical tower. Sheryl Kornman reports. And finally, did you know that Tucson is the global leader for temporary tattoos? Tattoo Manufacturing has grown into a $25 million business. Mary Minor Davis takes us inside this factory of fun. Steven E. Rosenberg Publisher & Owner BizTucson
Biz
Contributing Editors
Gabrielle Fimbres Donna Kreutz
Contributing Technology Director
Mike Serres
Contributing Cuisine Writer Edie Jarolim Contributing Writers
Mary Minor Davis Gabrielle Fimbres Edie Jarolim Sheryl Kornman Christy Krueger Joan Liess Steve Rivera Dan Sorenson Monica Surfaro Spigelman Eric Swedlund Valerie Vinyard Romi Carrell Wittman
Contributing Photographers Carter Allen
Kris Hanning Amy Haskell William Lesch Brent G. Mathis Chris Mooney Tom Spitz Balfour Walker
Member:
Arizona Builders’ Alliance Tucson Advertising Federation Tucson Hispanic Chamber of Commerce Tucson Metro Chamber Tucson Regional Economic Opportunities (TREO) Visit Tucson
BizTucson Phone: 520.299.1005 Subscription Information:
www.BizTucson.com subscriptions@BizTucson.com Advertising information:
Steve Rosenberg 520.299.1005 or 520.907-1012 steve@BizTucson.com BizTucson is published quarterly by Rosenberg Media, LLC. ,Tucson, AZ © 2013 All rights reserved. Reproduction in whole or in part without written permission is prohibited. Opinions expressed in columns or articles do not necessarily reflect the views of the publisher.
POSTMASTER:
Please send address changes to: BizTucson, 4729 East Sunrise Drive, #505 Tucson, AZ 85718.
www.BizTucson.com
Fall 2012
>>>
BizTucson 5
6 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 7
8 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 9
www.BizTucson.com
Spring 2009
>>>
BizTucson 7
BizCONTENTS
FEATURES
SUMMER 2013 Volume 5 No. 2
Cover Story: 67
Why The World Visits Tucson New Brand For Region’s $2.4 Billion Tourism Industry
DEPARTMENTS
26 58
30
4 26
BizLETTER From the Publisher
28
BizART World of Colors
30
BizRETAIL Global Retailing Conference
38
BizSALES Jeffrey Gitomer
40
BizFINANCE From Bullfighter to CEO
42
BizLEADERSHIP Developing Young Leaders
46
BizINTERIORS Italian Modern Meets Desert Zen
50 54
BizHONOR Military Father of the Year
58
BizMEDICINE One Step Closer to Conquering NP-C
60 64
BizHEALTHCARE Impeccable Credentials Solid Track Record
BizMANUFACTURING World’s Largest Tattoo Maker
BizINNOVATION Global Visionary Hsinchun Chen
BizBENEFIT $130,000 for Tribal Charities
67 BizSPECIAL
Summer 2013
118
BizDESIGN Spectacular Splashables
BizBIOSCIENCE 124 Rx For Economy: Medical Diagnostics BizLEADERSHIP 130 National Experts View Changing World BizHEALTHCARE 136 $200 Million TMC Redevelopment 138 142 144
BizMEDICINE Passion for Plastic Surgery BizCOMMERCIAL Commercial Real Estate Women BizHONORS Construction Dream Team Honored
BizRETAIL 148 Elegant Elements 150 152
BizAWARDS ASID Design Excellence Awards – Commercial & Product Design BizLEADERSHIP The Arizona We Want
ABOUT THE COVERS Created by design guru Brent G. Mathis Photos: William Lesch Photography
TOURISM: 74
Free Yourself in Tucson
82
Tucson’s DNA
87
Leadership
88
Oro Valley Aquatic Center
92
Smart Travelers Hold the Phone
96 99
Fly Tucson Tucson’s Tremendous Opportunity
106 Why Foodies Love Tucson <<<
BizHONOR Champion for Children
REPORT
103 Where We Want To Be 12 BizTucson
116
SP EC FAL IAL L 201 RE2 PO RT
20 13 THE REG ION
’S BU SIN ESS
MA GA ZIN
WHY TH E WORL D Meet New
VISITS
UA Preside
nt
TUCSO
N
N EW BR AND
FO R RE G IO N ’S TO U RI SM $ 2 .4 BI LL IO N IN D U ST RY www.Biz
Tucs on.c
om
E
6 BizTucson
<<<
Spring 2009
www.BizTucson.com
6 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 7
8 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 9
www.BizTucson.com
Spring 2009
>>>
BizTucson 7
No autographs please. Thereâ&#x20AC;&#x2122;s only one credit union in Tucson that has maintained its 5-Star rating for the past seven consecutive years. But we wonâ&#x20AC;&#x2122;t tell you who.
(nudge, nudge, wink, wink)
www.pimafederal.org Federally insured by NCUA
* Rating< given by2009 Bauer < < Spring 8 BizTucson
www.BizTucson.com Financial--reporter and analyzer of U.S. banks and credit unions.
www.BizTucson.com
Spring 2009
>>>
BizTucson 9
10 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 11
12 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 13
PHOTOS: TOM SPITZ
Steve Tooker President & CEO Tattoo Manufacturing
Tattoos for Every Occasion By Mary Minor Davis 26 BizTucson
<<<
Summer 2013
BizMANUFACTURING rary – people coming back for more. What was once a prize in a Cracker Jack box a century ago is now one of the most popular couture items for consumers This Tucson company has been recognized as one of the around the world – the temporary tattoo. best places to work by the Advertising Specialty Institute and How popular is temporary tat art? Think 7 million transferin 2010 by Wells Fargo’s Copper Cactus Awards. In 2012, the able tattoos a day printed right here in Tucson. company also received a Copper Cactus Award in the Busi Tattoo Manufacturing started in a garage in 1989. Today ness Growth category. In April it was named 2013 Small it’s the world’s largest temporary tattoo maker, serving 90 perBusiness Exporter of the Year by the Arizona District of the cent of the North American market and 70 percent of the U.S. Small Business Administration. world market, according to Steve Tooker, president and CEO, While temporary tattoos have grown in popularity over who acquired the company in 2008. the last 100 years, body art has been around for centuries. In 2012, the company reported gross sales of nearly $25 Often used for religious or ceremonial purposes, tattoos have million, with its largest customers including the likes of Kelexpanded to include fine art, imagery, characters and personal logg’s, Kraft, Mattel and Disney, to name a few. messaging around the world. There also are hundreds of thousands of other customers – According to an online news story published by Dave Eisenfrom tiny tots to soccer coaches berg in June 2012, 36 percent of and wedding planners. 18-25 year olds and 40 percent That’s a big leap from 100 of adults 26-40 in the United years ago when Cracker Jack States have at least one tattoo. promoted “a prize in every box” Pew Research estimates that 54 – often a temporary tattoo. As percent of GenNexters have at the popularity, quality and safeleast one form of body art – be ty of temporary body art grew, it a tattoo, hair of “an unnatural so did consumer demand. color” or a body piercing. But temporary body art lets Today TM offers more than people be whimsical, have fun – 7,000 images in stock – the onand change their mind. There’s line list of choices spans from no commitment and no worry angels to zodiac signs. There about what a permanent tattoo are cartoon characters, dragons, might look like on sagging skin fairies, motorcycles, religious decades from now. symbols, skulls, even wounds The company also works with and scars. Custom images can nonprofit groups (the popular be created from photos, artwork pink ribbon is one of the comand company logos. Glitter, pany’s biggest items), schools glow-in-the-dark and scented and other organizations. options also are available. Everything is designed, manTooker continues to watch for ufactured and sold at the Tucnew opportunities on the horison headquarters near Aviation zon. The consumer’s desire for Parkway and Palo Verde Road. immediate gratification has the Clockwise from bottom left: Greg Price, Lianne Rae Monreal, TM has 100 employees. company looking at mobile apps Steve Tooker, Alison Root, Carolyn Mills, Stephanie Typically the tattoo image is that would allow a consumer to Bermudez, Victor Meza and Sam Gilmore. transferred to the skin with a send an image of what they’d Tattoo Manufacturing wet washcloth, then lasts for 3 like to have, and TM would dePresident/CEO – Steve Tooker to 5 days. Once it sets, the tatsign and ship it the next day. Number of employees – 100 too is waterproof – but can be “Mass customization is where Typical in-stock unit price – 55 cents we’re headed in most marremoved at any time with rubbing alcohol. kets,” he said. “It began with 2012 gross sales – $25 million While the majority of concell phones. The immediacy of Production – 7 million tattoos per day sumers are younger, TM offers information has led to the imdesigns and products for all mediacy and customization of ages. Recently the company launched Skin Couture, sold as a everything. Consumer retail is no exception.” high-end accessory for women at cosmetic counters and bouTM also plans to continue to round out its product line. tiques, Tooker said. Currently the company offers other products including pocket “Women like to share these designs for showers, birthday calendars, books, stickers and scratch-n-win cards. “While tatparties, girls’ night out and other social occasions. It’s a way to toos are a good lead in, retailers want more,” he said. enjoy body art without it being permanent.” Tooker intends to continue to grow the company’s global Tooker said temporary tattoos allow for personal selfreach. “There are so many markets not yet tapped,” he said. expression, without the sometimes painful process of a perBiz Want to learn more? manent tattoo. “Our customers are motivated by a desire to Check out the company’s UpFront blog on the website interact with a property – whether it’s a superhero they look www.tattoosales.com to learn about trends in tattoos, up to, a popular cartoon character or a work of fine art.” ideas for special occasions and the history of temporary That’s one benefit of making a trendy product that’s tempotattoos in more detail. www.BizTucson.com
Summer 2013 > > > BizTucson 27
Chris Bubany Artist
World of Colors PHOTO: AMY HASKELL
By Valerie Vinyard
28 BizTucson
<<<
Summer 2013
BizART The first detail you notice about artist Chris Bubany are her striking blue eyes. Their distinctive shade could be one of the colors that she uses in her fun and colorful plates, bowls and other tableware seen throughout Southern Arizona. In her art, Bubany revels in anything Southwest – whether it’s javelinas, cactus, hummingbirds or even bats. And the 58-year-old has made quite a successful living at it. “Her art speaks to me,” said Emily Strathford. “I never get tired of her colors and designs.” The retired schoolteacher was strolling the grounds at Harlow Gardens in November during the Chris Bubany’s Holiday Marketplace, her 17th annual art show featuring works for sale by 50 or so artists. Strathford had just purchased two pieces by Bubany – a spoon holder and a hummingbird plate, one of her most popular designs. Strathford was quick
“
Dan, who lives in Phoenix, and 28-yearold Brent, who’s serving in the Army in Afghanistan. George is a retired teacher who now runs a dog-sitting business. “I came here and I never left,” Bubany said of Tucson. “It seems like every seven years I morph into something else.” Over the years, she has “morphed” into a wall painter, a kids’ furniture painter and a T-shirt designer. She “fell into” her current career in 1994 when she and George were building their eastside home. “I knew I wasn’t going to have a lot of wall space,” she said. “I thought I could paint tiles.” Bubany had taken art in high school and college, but she had never done ceramics. “Throwing pots didn’t really appeal to me,” she said. “There wasn’t much color. I’m really more into two-dimensional things.”
She met Bubany 16-plus years ago when their sons went to school together. “I had shown her my children’s play table I had painted – which had a gazillion little dots on it,” she said. One day Kershner saw Bubany in town, and asked if she needed any help. Bubany agreed, and the rest is history. Besides the omnipresent dots, Kershner has her hands full. “It’s been at least full time,” said Kershner, whose job includes working on Bubany’s hummingbirds and sun faces and serving as production manager. “I told Chris, ‘You realize we see each other more than our husbands.’ We sit across the table with each other all day.” That’s because it takes a lot of work to create a Bubany piece. First, the greenware – or clay that hasn’t been fired yet – is poured into one of the many molds. Designs are traced onto the piece, and Bubany and some of her employees paint the designs and patterns onto the
Her art speaks to me. I never get tired of her colors and designs. – Emily
to say that she’s been a fan of the artist since discovering her work for sale at Table Talk several years ago. Through the struggling economy the past few years, Bubany realized she “had to change how my business was.” That entailed moving in mid-September from her Camino Seco and Broadway studio to the new space at 6530 E. Tanque Verde Road with warm yellow walls and Saltillo tile floors. Bubany went through various phases in art to get where she is today, starting at about age 12. “That’s all I ever wanted to be – an artist and a mom,” Bubany said. “I always loved to color.” So much so that one day, her parents asked her if she’d rather do art than the piano lessons she endured. Bubany jumped at the chance. Her love of art continued as she moved from her hometown of Gallup, N.M., to be with her high school sweetheart, George Bubany, and study graphic design at the University of Arizona. The two have been married 38 years and have two boys – 32-year-old www.BizTucson.com
Strathford, Retired Schoolteacher
But she visited a ceramics store for help, which led her to ably design their kitchen and three bathrooms. “I thought I’d go into a custom tile business,” she said. “Then I thought – I could paint a plate.” Her first plate, a fish, was “modern, funky and bright.” Then came a rooster, followed by salsa bowls for each of her seven siblings. “I just love to paint,” she said. “I love the process. I feel like I have so much art in me.” Bubany has employees who help with production, but she signs every piece. Her “right-hand” woman, Michelle Kershner, adds the colorful dots that grace most pieces.
”
unfired clay. The fragile piece then is fired at about 2,000 degrees in the kiln. After about 24 hours, the kiln is cool enough where the piece can be removed and a glaze can be applied to make it waterproof. The piece then undergoes a second firing at about 1,800 degrees to “make it nice and shiny,” Kershner said. Marilyn Sitzmann, owner of Seasons of Tucson, remembers buying her first Bubany piece in about 1997. She started carrying Bubany’s work in her store, which now is located in La Encantada, about eight years ago. “I love the whimsical and yet completely Tucson look to it,” Sitzmann said. “It’s always something that can make you smile. I love having it in the store.” And it’s why Bubany’s art has endured over the years. “I hear a lot of people say it makes them happy,” Kershner said. “As a person, Chris wants everybody to be happy. She is very caring and concerned about people.”
Biz Summer 2013 > > > BizTucson 29
Terry Lundgren, President & CEO, Macyâ&#x20AC;&#x2122;s Photographed in front of the Terry J. Lundgren Center for 30 BizTucson
Retailing at the University of Arizona <<<
Summer 2013
PHOTO: CARTER ALLEN
BizRETAIL
Fashion designer Tory Burch gives aspiring retail students her tips for success, then chats and poses for pictures. Executives from Bloomingdales, Costco, Sony and Walmart swap cutting-edge branding strategies. Macy’s President and CEO Terry Lundgren previews his store’s latest marketing campaign. If there was a Super Bowl of retail, this would be it. The Global Retailing Conference, a high-wattage annual gathering presented by the University of Arizona’s Terry J. Lundgren Center for Retailing has placed Tucson at center stage for the country’s captains of industry each year. Designers Vera Wang, Tommy Hilfiger and Martha Stewart are just a few of the rock-star speakers who have attended in past years, along with retail giants Home Depot, PetSmart, QVC, Coca-Cola, Kraft Foods and countless others granting business professionals and college students’ unparalleled access to the industry’s best and brightest. “It’s true, the industry comes to Tucson,” said Martha Van Gelder, director of the Terry J. Lundgren Center at the UA College of Agriculture and Life Sciences. The center was named after the UA alum in 2005. The conference, now in its 17th year, began when the center was still the Southwest Retail Center, and it continues today with the high-profile backing of Lundgren. “The conference has had a cumulative and proven effect in supporting excellence in thought leadership and strategy,” Van Gelder said. “Our partners and sponsors approach the conference through the lens of unique access to senior retail leaders and giving back to the future and excellence in retailing.” This year’s meeting, held in April at Loews Ventana Canyon Resort, brought 325 executives and 175 students together to listen to speakers from Sony, Facebook, Walmart, Polaroid, Costco, Bloomingdales, Hudson’s Bay Company and others. Burch concluded the conference with her story of success before mixing it up
www.BizTucson.com
Super Bowl of
R E T A I L
By Tara Kirkpatrick
with admiring retail students. “She is such a designer for our age group, it’s exciting,” said Stephanie McIlroy, a UA junior in the retail school. “We are here with the leaders of the industry,” added UA junior Fionna Norman. “That could be me someday.” Said Van Gelder, “Hearing retail luminaries such as (Costco co-founder) Jim Sinegal and Tory Burch tell stories of both triumph and failure gives students a sense of the path upward and commitment needed of those passionate and successful in the industry.” Lundgren, in his opening conference remarks, told colleagues, “This is where you want to come and recruit,” noting the 37 UA graduates his company recently hired. Indeed, students are told to consider every interaction at this conference, essentially, an interview, Van Gelder said. “We see the results every year through the development of important new connections, jobs and prospects for our students,” she said. Matthew Shay, president and CEO of the National Retail Federation, used this year’s meeting to announce the trade organization’s latest campaign about the importance of retail to the U.S. economy. According to the This is Retail campaign, which has a companion website at thisisretail.org, retail not only accounts for 42 million U.S. jobs, it’s a career with easy entry and tremendous opportunity for promotion, Shay said. “You can make a difference right from the start,” he told the audience. “It’s truly a meritocracy. Anything is possible for you.” Aside from the students, the Global Retailing Conference also challenges business leaders to survive and thrive through evolution. This year’s theme, “Accelerate Your Brand, Get Ahead of Your Shopper,” focused on how to satisfy today’s customer, who now demands constant innovation, meaningful connection and all-hours access through multiple technological channels. “If you’re not innovating, you’ve lost the conversation,” Shay told the audience. continued on page 32 >>> Summer 2013 > > > BizTucson 31
Fashion designer Tory Burch gives aspiring retail students her tips for success. continued from page 31
Highlights from the 2013 Global Retailing Conference Innovation
Transforming Macy’s stores into order fulfillment centers is a game-changing strategy that is paying off, Macy’s Lundgren told attendees. “We want to make sure we satisfy our customer in the store and online,” he said. “If a customer walks into the Tucson Mall and doesn’t find the product they want, how do we get it to them?” Technology enables Macy’s associates to locate the item in another store and have it shipped from there rather than a central warehouse. “I don’t have to buy inventory twice and I can continue to sell inventory from the stores,” he said. “It’s all about how we can get the product into the hands of our customers even sooner.” Polaroid, a household name thanks to Edwin Land’s camera invention in the mid-1940s, has had to reinvent itself to survive, becoming more of a licensee and marketer of its technology, explained Scott Hardy, company president and CEO. “There are very few brands that can be classified as a global brand,” Hardy said. “We’ve been able to take that recognition and transform the company.” Polaroid now boasts a top-selling photo app, a phone popular in Europe, tablet computers and popular Fotobars in shopping centers that let customers print top-quality pictures from social media and their cell phones. Having 40 licensees of Polaroid technology around the globe has enabled the company to “go fast and go hard,” Hardy said. continued on page 34 >>> 32 BizTucson
<<<
Summer 2013
www.BizTucson.com
Photo Courtesy: Terry J. Lundgren Center for Retailing College of Agriculture and Life Sciences, University of Arizona
BizRETAIL
www.BizTucson.com
Summer 2013 > > > BizTucson 33
BizRETAIL
“
It’s all about how we can get the product into the hands of our customers even sooner. Terry Lundgren President & CEO Macy’s
–
”
continued from page 32
Connection
French cosmetics company Clarins has successfully competed with beauty giants including Estée Lauder thanks to a focus on customer intimacy, said Jonathan Zrihen, president and CEO of Clarins Groupe North America. “We want customers for life,” he said. “We want loyalty and we strive for it beyond reason.” Clarins aims to literally touch every customer that walks up to a Clarins counter, showing the customer how to use products, offering skin applications and beauty services in chic, glass-cubed, mini-spas built into unused spaces in stores that already boast Clarins beauty counters. “Within the store, the quality of spa services is the same as the Clarins spa at Miraval,” Zrihen said. “Once they experience it, they buy more product and tell their friends about it. Yes, it works.” Walmart connects with 28 million shoppers through its Facebook page, said Wanda Young, VP of media and digital marketing. “People are the future of retail,” Young said. “Word of mouth works better than any advertising and Facebook has created an amazing base for us.” Working with Facebook Senior Account Manager Kerry Lakin, Walmart has learned that its Facebook fans spend more money at the store, Young said. continued on page 36 >>> 34 BizTucson
<<<
Summer 2013
www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 35
BizRETAIL continued from page 34
All Access
Customers today research products on their phone, then come in to the store to touch the product, then go back home and buy it online, Lundgren said. “However the customer wants the product, we are going to give it to him or her.” To that end, Lundgren has created a new chief omnichannel officer, who reports to him on the company’s full technology platform. “I put someone in charge who has a 360-degree view of the customer,” he said. Access to retail must also be hip and enjoyable, explained Joseph Bona, president of branded environments for CBX, a New York-based branding firm that has recreated stores all over the world. “There’s still something about being with people, about being together,” Bona said. “It’s about creating a value experience.” CBX redesigned New York’s Duane Reade convenience stores into modern, open spaces with unique, New Yorkcentric packaged products, a weekly newsletter with helpful information including the subway schedule and other features. “The physical store has to be reassessed,” Bona said. “Customers want more.” Those who attended this year’s conference were pleased with the takeaways. “I think the caliber of speakers has been amazing,” said Kellie Walejeski, COO of local hosiery and sock maker Royal Bermuda. “The students we’ve engaged with have all been polished, intelligent and well-spoken. It’s very refreshing.” Nancy Yaeli, senior VP for campus and global partnerships at the UA Alumni Association, said, “I came to the Global Retailing Conference to learn about brand and customer loyalty from the industry’s top experts. Those concepts apply to all industries – including universities and alumni associations – even more so in today’s globallyconnected environment.”
Biz
36 BizTucson
<<<
Summer 2013
www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 37
BizSALES
Winner. Whiner. Smart. Dumb. 4 Words. Pick 2. by Jeffrey Gitomer
Questions: Who’s going to win the next Super Bowl? Who’s going to win the next World Series? Who’s going to win the next Masters Tournament? Answers: The team or the player that’s best prepared… makes the fewest mistakes… stays steady and keeps its cool. The team or the player that creates breaks and takes advantage of them… prepares one razzle-dazzle play… takes the risk at the opportune time and pulls it off. The team with the most dedicated players. The team or the player with the best coach. Same in sales. In this year’s Super Bowl, both teams were capable of winning. But victory does not always go to who’s the best. It more often goes to who’s the smartest – smartest coach, smartest players. And, of course, whomever got the breaks and took advantage of them. Same in sales. The smartest will win – especially if they get the breaks. (Or do smart people create breaks?) Big question: What does smart selling mean to you? My answer: It doesn’t take as much brains as it takes understanding. So I have created the perfect acronym to help you: S - Smile M - Make friends A - Attitude of a winner R - Relationship actions T - Responsibility Pretty simple. No memorization required. No “find the pain” manipulation. Just an easy-to-understand formula that will guide you to more business. Let me deepen the SMART selling definitions: S - Smile. This defines your warmth, approachability and overall feeling. It’s a greeting beyond a handshake that sends a welcome, open message. It’s both peaceful and reassuring. M - Make friends. This is not as easy as it seems. Some prospects want to keep it “all business.” Your responsibility is to create friendly dialog that might result in finding some common ground. Look for their smile. That’s a sign you’re breaking the ice. And note my mantra: All things being equal, people want to do business with their friends. All things being not quite so equal, people still want to do business with their friends. A - Have the Attitude of a winner. This is not just a positive or a YES! attitude. This is a winning attitude that combines your will to win, your preparation and your self belief. It’s a positive, internal confidence based on previous wins. Not cocky. More like self-assured in a way that passes your confidence on to the customer. 38 BizTucson
<<<
Summer 2013
www.BizTucson.com
R - Take Relationship actions. This means you take longterm oriented actions. Actions that will stand the test of time. Actions that give your customer the feeling you represent their best interest, not just your own. You speak the truth, have high ethical standards and are known for service. You’re taking service actions and value actions beyond the sale. Not sell and run (the 1970’s definition of “hunter”). Rather, rather stay and help. Earn the relationship to a point where it becomes referral based and testimonial possible. T - Take responsibility. This starts with who you are as a person and transcends to who you are as a salesperson. As a smart salesperson, you have to know the responsibility is yours if you lose a sale – the same as if you win a sale. The good news is when you become responsible for both success and failure, you also become a student of sales and life. Blaming others (the opposite of responsibility) allows you a hall pass from self education. It’s forgotten or passed on rather than studied. Major aha! I tweeted: “When it’s raining outside, and you blame the rain, keep in mind it’s raining on everybody. Take responsibility. #gitomer.” Result: 42 re-tweets and 14 favorites within 1 hour – on a Sunday morning! Here are a few more critical elements of Smart Selling: Product smart. Customer smart. Value smart. Preparation smart. Follow-up smart. Service smart. Bigger question: How smart a salesperson are you? Now that you have my definition, the reality is you may think you’re smarter than you actually are. Smart selling reality: • Smart salespeople don’t sell on price. • Smart salespeople don’t reduce price. • Smart salespeople don’t match price. Biggest question: Now that you have read this, are you still as smart as you thought you were a few minutes ago? Probably not – but that’s a good thing. Now that you’re aware of what Smart Selling consists of, you can begin to take advantage of it. There’s one more element of smart selling – it’s the twoword essence of a successful salesperson. To find out what it is, go to www.gitomer.com, register if you’re a first-time visitor and enter the words SMART SELLING in the GitBit box. Biz Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership and Social BOOM! His website, www. gitomer.com, will lead you to more information about training and seminars. Email him personally at salesman@gitomer.com. © 2013 All Rights Reserved. Don’t even think about reproducing this document without written permission from Jeffrey H. Gitomer and Buy Gitomer. (704) 333-1112. www.BizTucson.com
Summer 2013 > > > BizTucson 39
BizFINANCE Carmen BermĂşdez, CEO Mission Management & Trust Company
The Road Less Traveled From Bullfighter to CEO
PHOTO: CARTER ALLEN
By Christy Krueger
40 BizTucson
<<<
Summer 2013
Carmen Bermúdez rose from poor beginnings in the Costa Rican jungle to become one of the most highly acclaimed businesswomen in America. Some people are born with it – an innate business sense that allows them to soar to the top of their professions. Bermúdez did not attend business school nor have the advantage of an Eller College of Management. Yet her career highlights include bullfighter, flight attendant and CEO. In November 2012 she was profiled in the New York Times. Last year she also was featured in the centennial hardcover book “48 Arizona Women – Arizona’s Most Intriguing Women.” In 2005 the Tucson Hispanic Chamber of Commerce honored Bermúdez as Hispanic Businesswoman of the Year. And in 1995 she received Arizona’s first Athena Award – a worldwide distinction that celebrates business excellence, empowerment of women and community service. And the list goes on. Today Bermúdez is chairman and CEO of Mission Management & Trust Company, which she founded in Tucson in 1994. But her rags-to-riches story didn’t start out with such aspirations. Bermúdez was raised in Guapiles, Costa Rica. “It was the jungle. There were no roads, no running water and no electricity,” she recalled. “My mother raised four kids by herself.” At an early age Bermúdez discovered the adrenaline rush of swinging from the trees like Tarzan and staring down a massive bull. “My heroes were bullfighters – they were beautiful and respected. I didn’t see how we’d get out of poverty.” So she became a bullfighter in Costa Rica and then Mexico City, staying in the business for six years, until she was 24. She moved to the U.S. and attended Santa Monica City College before joining TWA as a flight attendant – which is how she met her future husband, Thomas Feeney. Bermúdez worked for his investment firm in La Jolla, Calif., before deciding to start her own company. “I saw the need for investment management to handle security custody for clients. I found out that in California, to get a license for a trust company takes five years. But we didn’t have to stay in California – because our clients are all national,” Bermúdez explained. So she www.BizTucson.com
“
People want to do business with us. People have heard of our reputation and conservative style. Our clients are our best publicity. –
”
Carmen Bermúdez, CEO, Mission Management & Trust Company
moved to Tucson and established Mission Management & Trust, which specializes in managing trusts, investments and security custody. Susan Ernsky, president and portfolio manager of the company, likened custody management to stock certificates or bond coupons of earlier times. “It’s in the bank’s custody for safe keeping.
We have custody of assets,” she said. What sets the company apart from its competition, Bermúdez and Ernsky agree, is being flexible with investments according to market trends and offering clients a sense of security. “People want to do business with us,” said Bermúdez. “We have good client and employee retention. People have heard of our reputation and conservative style. Our clients are our best publicity.” Mission’s first Fortune 500 client was Avon, and Bermúdez named one of her conference rooms after the company. Avon recognized her with its Women of Enterprise Award in 2000. Honorary Consul of Costa Rica for Arizona is another hat Bermúdez wears, housing the consulate within Mission’s office. The assignment came about after serving on the U.S. Hispanic Chamber of Commerce. “I started taking people on trips. I promoted Costa Rica, and the ambassador thought I’d be a good representative for Costa Rica,” she said. What’s enabled this impressive woman to reach the heights that she has? “My husband says I have a lot of street smarts. Susan says I’m like a conductor – I don’t play, but I can put it all together.” Bermúdez also believes working for TWA helped her develop people skills – and she’s learned a great deal from reading books. When she started at Feeney’s company in California, he saw her determination. “She came in and it was clear she enjoyed work and was a quick study,” he said. “She began to see things on the operational side. She has intelligence and intelligent ideas and has found success by trial and error and doing things better than the others.” As a result of her humble beginnings, Bermúdez values what she has now and is passionate about helping others in business. She feels that if more local companies offered internships and mentor programs, a greater percentage of young workers would build their careers in Tucson instead of moving away. “I love giving jobs to people and mentoring young people. Tucson has a lot of business owners and we all need to help keep our talent here,” she said.
Biz Summer 2013 > > > BizTucson 41
BizLEADERSHIP
Developing Young Leaders By Romi Carrell Wittman
Tucson is known for many things – the gorgeous Sonoran Desert, yearround sunny skies, a top-rated research university, a Wild West history. What it’s not known for is retaining its homegrown talent. Every year, thousands of bright, young people graduate from the University of Arizona and venture out into the world, finding jobs in cities far away from Tucson. Others come here for a job opportunity, then most eventually leave the Old Pueblo within a few years. It’s called ‘brain drain’ and Tucson Young Professionals hopes it can help reverse this long-standing trend. “There’s a large retirement-age population and a large college-age demographic in Tucson. The young professionals get lost,” said Devin Simmons, president of TYP. “Yet the young professionals are really the future of our community.” When young, talented people leave town, they take with them their creativity and enthusiasm, not to mention economic opportunities. “We lose that potential for new ideas and creative opportunities,” said Simmons, a value stream manager at Raytheon Missile Systems. TYP’s mission is to attract, promote and retain young professionals and it’s undertaking several ambitious initiatives to accomplish that mission. 42 BizTucson
<<<
Summer 2013
Previously known more as a social organization, last year TYP underwent something of a makeover, with the goal of evolving the organization toward professional development and philanthropy.
“
Young professionals are really the future of our community.
”
– Devin Simmons Value Stream Manager Raytheon Missile Systems & President, Tucson Young Professionals
TYP aims to be a resource for young people, helping them to connect with other professionals, job opportunities and community outreach vehicles. Once given these resources, the hope is that these career-focused young people will develop deep ties to Southern Arizona – ties that will keep them here for years to come. Ryan Flanagan, CEO of Nuanced Media and TYP’s marketing committee
chair, said, “We’re moving TYP from the social and focusing more on growing strategic alliances and growing our membership.” One of those strategic alliances is with the Southern Arizona Leadership Council. TYP recently moved into space in the SALC offices and currently hosts its board meetings there. But the relationship goes deeper than simply being officemates. “SALC has been a mentor for this organization from the beginning,” Simmons said. “I work very closely with Ron Shoopman and I count on him as a personal mentor.” Shoopman, SALC president, believes that TYP is critical for Tucson’s future. “They have proven to be an effective voice on policy issues and, most important, they are building relationships that will help them lead our region in the future. SALC considers TYP to be one of our most important leadership development efforts.” TYP’s history is intertwined with SALC. In 2007, a group of young professionals asked to join SALC as junior members. “We encouraged them to form TYP on their own – but with our support and guidance,” Shoopman said. “We felt they would benefit from the experience of forming and running their own organization.” continued on page 44 >>>
Tucson Young Professionals recently presented the Four Elements fashion show, its fifth annual fundraising event. Held at the Fox Tucson Theatre and sponsored by Zanes Law, the show offered local designers and boutiques the opportunity to showcase their latest fashions. More than 300 attended.
PHOTOS: CHRIS MOONEY
From left â&#x20AC;&#x201C; Caroline Bowen, Secretary, Tucson Young Professionals & Melissa Kerr, Special Events Committee Chair, Tucson Young Professionals
t
t
Devin Simmons, Value Stream Manager, Raytheon Missile Systems & President, Tucson Young Professionals
Summer 2013 > > > BizTucson 43
BizLEADERSHIP RETAIL
“
Tucson Young Professionals are critical to the future of Tucson. TYP is a good reason for optimism in Southern Arizona. –
”
Ron Shoopman, President, Southern Arizona Leadership Council
continued from page 42
PHOTOS: CHRIS MOONEY
t
44 BizTucson
<<<
Summer 2013
Jeff Ell, Chair of Philanthropy Committee & Former President, Tucson Young Professionals
Since then, TYP members have attended SALC general and annual meetings and have served effectively on SALC’s action committees. The relationship with SALC puts TYP and its members in contact with CEOs and other heavy hitters in the community – in essence, today’s leaders mentoring tomorrow’s leaders. “We’re steering the ship toward people that make decisions,” Simmons said. Many TYP members and board members are also graduates of Greater Tucson Leadership, a nonprofit, nonpartisan leadership organization. GTL hosts an annual leadership class in which participants expand their knowledge of the Southern Arizona community, cultivate relationships and grow their leadership skills. TYP has also forged connections with the Tucson Metro Chamber and the university. Flanagan said TYP takes an active role as a facilitator between college students about to graduate and the business community. “We just did a bus tour. We took students from the UA to different venues – just to get some experience seeing what different companies and jobs look like.” “Philanthropy is also an important focus for the group. For the past five years we’ve presented a fundraising fashion
show that supports TYP. We also host lots of smaller events throughout the year where we partner with other nonprofits to help raise funds for their causes,” Simmons said. The next item onTYP’s to-do list is its membership plan. At roughly 2,000 people, the group boasts a healthy membership base. Now the TYP board is focused on offering different types of membership levels, providing a range of benefits and levels of engagement. Though TYP has evolved, some things won’t change. “Because we’re younger, there will always be somewhat of a social focus,” Flanagan said. “But there is also interest in growing other areas. It’s not just one facet. It’s a multi-faceted approach to engaging Tucson’s young workforce.” SALC’s Shoopman strongly believes in the TYP mission. “The Tucson Young Professionals are critical to the future of Tucson. TYP is a good reason for optimism in Southern Arizona.”
Biz
www.BizTucson.com
Tucson Young Professionals 2013-2014 Board of Directors – From left, Ryan Flannagan, Crystal Hollman, Danielle Duarte , Katie Grogan, Devin Simmons, Melissa Kerr, Jeff Ell, Allyson Solomon & Caroline Bowen.
Summer 2013 > > > BizTucson 45
46 BizTucson
PHOTOS: AMY HASKELL
Front row from left: Jodi Bellah, business manager; Kevin Howard, architect/owner and Nancy Zepeda, business development. Back row from left: Aleece Bonnema, administrative assistant, and Gillian Turney, interior designer/support services.
<<<
Summer 2013
BizINTERIORS
Italian Modern Meets Desert Zen By Romi Carrell Wittman
Architect Kevin Howard smiles as he pulls open a drawer from the sleek Caesarstone and wood-topped kitchen island. The island’s lines are spartan yet elegant, with four gas burners forming a single line through the center. There is no other adornment, no apparent bells and whistles, aside from the obvious modern design concept. “This is the Ferrari of kitchens,” Howard said with obvious delight. “They’ve thought of everything.” He was referring to Poliform, an Italian modular systems and home furnishings manufacturer that has a reputation for high-end luxury and unsurpassed quality. Poliform showrooms can be found in New York, Los Angeles, Chicago, Milan and – as of February – Oro Valley. About that drawer…what at first appears to be a standard utility drawer is anything but. It glides open gently with the slightest of pulls. Tucked neatly inside – and out of eyesight – is an array of kitchen necessities that you would www.BizTucson.com
find scattered awkwardly throughout a regular kitchen. There is a set of cutting knives, each in its own made-to-order slot, complete with magnets to hold the knives in place and eliminate any annoying jangly sound when the drawer is shut.
“
There has been a shift toward convenience and smaller, smart, green homes. –
”
Kevin Howard, Architect and Owner, Poliform Dealership
There is a slot for aluminum foil to make after-dinner clean-up easier. There are a number of perfectly sized airtight spice jars conveniently located within arm’s reach of the chef. And, finally, there is a detail you see, but don’t see: tiny, yet powerful LED lights embedded in the ‘ceiling’ of the drawer that automatically come on when the drawer is opened and shut off when it’s closed. There is no fumbling around in a poorly lit space in this kitchen. And let’s not forget the rest of the kitchen, with its Miele appliances and push-to-open cabinetry. The black lacquered cabinets open upward, rather than outward, allowing you to open all cabinets at once to take a full inventory of their contents. Even those pesky hard-to-reach cabinets up top are fully functional, even for the vertically challenged. A touchpad opens and closes them so you don’t have to grab a stepstool to access them. Larger appliances are hidden, but well within reach. The oversize refrigercontinued on page 48 >>> Summer 2013 > > > BizTucson 47
BizINTERIORS
“
The opening of the Tucson showroom together with such a prestigious partner, who deeply understands the local market, guarantees us a bright future in Tucson.
”
– Luca Bizi, Director of Sales, Poliform USA
continued from page 47 ator and freezer are hidden behind solid, natural cabinetry. Even the dishwasher is encased in gorgeous, natural wood. The entire showroom can be controlled from an iPad – lights, HVAC, the home entertainment system. There is even a tiny camera embedded in the ceiling, allowing a traveling homeowner to check on things – provided by ASL Home Entertainment Group. Howard has been designing and building custom homes in Tucson for years and is known for what he calls a modern desert Zen style of architecture. He discovered Poliform several years ago during, of all things, a search for the perfect sofa. “I was looking for a sectional sofa to go in a client’s home, something that would fit the lines of the home,” he said. “I looked at all kinds of images and every time I found one that worked, it was Poliform.” Howard began incorporating Poliform furnishings into client homes, but found it could be cumbersome to get them to the nearest showroom so clients could see the designs first-hand. “I had to go to Los Angeles or New York,” he said. He inquired about opening a Poliform showroom in Tucson. A short time later, Howard traveled to New York and met wit Luca Bizi, director of sales for Poliform USA, and solidified a Tucson dealership. Eight months later, Howard has launched the by-appointment-only Poliform showroom. It’s adjacent to his architecture firm and contains a living area, two kitchens and a master closet suite. Each area demonstrates the versatility and beauty of the Poliform product line, showcasing its modern aesthetic while incorporating the warmth and simplicity of the desert. Bizi said a Poliform showroom in the Southwest makes sense for the company. “The strategy of Poliform is to become more and more present with our distribution, finding partners that are able continued on page 49 >>> 48 BizTucson
<<<
Summer 2013
www.BizTucson.com
continued from page 48 to explain the quality of our products and the vision of our company to the American clients,” he said. “The opening of the Tucson showroom together with such a prestigious partner, who deeply understands the local market, guarantees us a bright future in Tucson.” Bizi added, “The strength of the collection lies in its flexibility of finishes and compositions. We have many different finishes that our clients can use consistently throughout the house – from the bedroom systems like wardrobes and walk-in closets to the kitchen without forgetting the loose furniture.” The modular aspect of Poliform’s cabinetry, sold under the brand name Varenna, means it can be customized and configured to fit virtually any home design. “It’s better than custom,” Howard said. “With a manufactured product, you get precision. With a custom piece, you can adapt. With Poliform, you get both.” Los Angeles-based Poliform client Eric Alan said, “Living with Poliform has been transformational. My family and I used to live in a sea of clutter. Now we finally see each other.” Howard said, “While Poliform offers lines that speak to the most discriminating clients, they also offer more modestly priced lines. This flexibility allows KBHA designs to serve all our clients’ needs and budgets.” Why a Poliform showroom? Why now? “With the recession, we had a reset button on our industry,” he said. “I have had to re-think how you run an architecture practice.” Howard said that firms must consider the whole picture, from design, through build-out and completion. “Tastes and goals have changed,” he said. “There has been a shift toward convenience and smaller, smart, green homes. We’re prepared for that shift.”
Biz www.BizTucson.com
Summer 2013 > > > BizTucson 49
BizHONOR
Photo: BalfourWalker.com
The Brady/Morlock family clockwise from left - Jasper Brady, Nicolas Morlock, Staff Sgt. Gabrielle Morlock, Tech. Sgt. Chad Brady and Haidyn Brady.
Military Father of the Year
Chad Brady By Mary Minor Davis
As a devoted father of three boys, U.S. Air Force Tech Sgt. Chad Brady has mastered the art of juggling responsibilities to his family and his country. Twice Brady has been called away from his family to serve our country in Afghanistan and Iraq. When his wife, who works with Brady in the 355th Equipment Maintenance Squadron at Davis-Monthan Air Force Base, was deployed to Afghanistan last year, Brady took over on the home front. From karate practice to homework help, cooking dinner and attending school functions, this devoted airman and father is focused on family. For his dedication and commitment, Brady has been selected the first U.S. Military Father of the Year by Father’s Day Council Tucson. 50 BizTucson
<<<
Summer 2013
Along with four other remarkable Tucson dads, Brady was honored at the Father of the Year Awards Gala Dinner and Silent Auction at Loews Ventana Canyon in June. The council funds research for type 1 diabetes through the University of Arizona Steele Children’s Research Center, and has raised $2.8 million since 1998. Also honored were Stephen G. Eggen, Tom Firth, Michael Hammond and Jon Volpe. Brady was surprised with news of the award. He thought he was attending a staff meeting followed by lunch with his wife, Staff Sgt. Gabrielle Morlock. Brady instead was met by colleagues, representatives from the Father’s Day Council and his base commander, who shared the news of the honor. continued on page 53 >>> www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 51
52 BizTucson
<<<
Summer 2013
www.BizTucson.com
BizHONOR continued from page 50 The 10-year veteran’s training, which carried him through overseas tours and earned him a commendation medal, wasn’t enough to prepare him for this. Holding on to his children, Brady fought back tears as he accepted the honor. “It was overwhelming,” he later said. Brady was nominated by Morlock. The two, who have a blended family, are the parents of Jasper, 8, Haidyn, 6, and Nicolas, 5, known as Nico. “I’ve always known he was a great father,” Morlock said. “It’s so nice to see that others recognize it, too.” Morlock and Brady met in 2009, and Morlock was touched by what a great dad Brady was to Jasper and Haidyn. “He always made sure his kids were well taken care of, well fed and well educated,” Morlock wrote in her nomination. “He read them stories before bed, made sure they ate their vegetables at dinner, taught them to tie their shoes and made sure that they knew he was always there for them.” Brady’s boys hit it off with Morlock’s son, Nico – important to the family dynamic. “The kids endure a lot of the sacrifices we go through,” Brady said. “It’s important that we spend as much time with them as we can.” Not long after they were married, Brady was deployed. When he returned, Morlock was deployed for six months. They have been apart for more than a year of their nearly three-year marriage. During her deployment, Brady helped Nico through the challenge of his mother being away. “It was hard for the family,” Morlock wrote. “Nicolas had never been away from me for more than a week and Chad had never had to care for three boys all on his own. “He remained strong for me, Nicolas, Jasper and Haidyn and made sure that no matter what, we were all cared for,” she added. “He is an amazing father and an even more amazing person.” Brady, who is also pursuing a college degree, is committed to community. He volunteers with Angel Thunder, a program that helps medical teams prepare for emergencies. He is also involved in Mothers Against Drunk Driving and fundraising for troops in Afghanistan. Col. Kevin Blanchard, base commander, said Brady has faced challenges, but every time “you took a negative and made it a positive.” He called Brady a “very special person to all of us who know you. “We talk a lot about leadership,” Blanchard said. “We sometimes forget that parents are the ultimate leaders.” Brady said he is grateful for the opportunity to accept the recognition – not just for his efforts but for all working parents. “There are a lot of us who have to work, but it’s rare to see parents recognized for the job they do as parents,” he said. “It’s hard and it takes a lot of effort. I want to give a shout out to all of the other working parents who are equally deserving.”
Biz www.BizTucson.com
Summer 2013 > > > BizTucson 53
“
I always try to create a win/win situation for everybody involved. This is a research university. We want to make an impact.
”
– Hsinchun Chen Regents’ Professor, University of Arizona
Innovator of theYear PHOTO: CHRIS MOONEY
By Sheryl Kornman
54 BizTucson
<<<
Summer 2013
BizINNOVATION The ingenuity, intellect, vision, tenacity and entrepreneurship of University of Arizona Professor Hsinchun Chen produced crime fighting and healthcare tools used throughout the world – making him a multimillionaire in the process. An international leader in the development of artificial intelligence, Chen has resisted the lure of Silicon Valley and remains dedicated to his work at the UA. Over the past 24 years he’s received 82 research grants totaling more than $30 million. Chen is founding director of the Artificial Intelligence Laboratory and the E-Commerce Lab at UA’s Eller College. For his groundbreaking accomplishments, the McClelland Professor of Management Information Systems recently added three more honors: • Chen received the Innovator of the Year award at the UA’s 2013 Innovation Day • He holds the Thomas R. Brown Chair in Management and Technology • He is now a Regents’ Professor, an honor reserved for the top three percent of the UA faculty. His Google Scholar H-index is 64 – ranking him as one of the top four information science faculty in the world. Chen developed the Dark Web project to track terrorism online as well as the crime-fighting product COPLINK, which allows law enforcement agencies to access information from multiple databases and connect the dots among criminal activities. Chen was nominated for Innovator of the Year by Leonard M. Jessup, dean of Eller College. After Chen developed the technology for crime data mining and intelligence visualization, he went on to found his own company – Knowledge Computing Corporation – in partnership with Tucson developer Donald Diamond. Diamond’s team “was instrumental in commercializing COPLINK and making it a success in the market,” Jessup said. After the spin-off software company successfully commercialized the COPLINK system, it merged with a leading intelligence analytic company in 2009. Two years later the system sold to IBM for half a billion dollars. It is www.BizTucson.com
currently used in 24 NATO countries. “I always try to create a win/win situation for everybody involved. This is a research university,” Chen said. “We want to make an impact.” Chen, who came to the UA in 1989, has served as advisor to domestic government and international research programs in digital government, digital library and medical and international security research. The COPLINK venture began after one of his students, a Tucson Police Department sergeant, asked if there was a better way to collect and assess information to track crime suspects. The officer eventually went to work for Chen in the company created through this venture and also became a millionaire. Chen is working on two major information technology projects – one inspired by COPLINK, the other he started before COPLINK took off. His Dark Web project is funded in part by the U.S. Department of Defense, Department of Homeland Security and CIA. It is aimed at capturing realtime data – in Pashtu, Arabic, Russian, Chinese and other languages – to aid in anti-terror activity around the world. The Dark Web project has one of the largest databases in the world, tracking websites, blogs, forums and multimedia documents generated by terrorists. Chen also resumed earlier work on a data mining and sharing system called DiabeticLink, a tool to help millions of people with diabetes manage the disease and prevent blindness and amputation. “I want to have impact,” Chen said. This work is concentrated in Asia for now, where he has access to medical records. Chen is from Taiwan. The medical management tool is designed to be marketed directly to patients with chronic disease, to help them manage their health. Chen said he began with diabetes and is moving on to Alzheimer’s, Parkinson’s and lung cancer. The health management tool is designed to serve 24 million people in Taiwan and as many as 1.6 billion people in China, he said. In March Chen was awarded the Thomas R. Brown Chair in Management and Technology. The chair honors faculty whose professional accomplishments mirror those of its namesake. Brown co-founded Burr-
Student Technology Innovator of the Year Jared Griebel was selected Student Technology Innovator of the Year at the 10th annual University of Arizona Innovation Day. Griebel is a doctoral candidate in the UA department of chemistry and biochemistry. His work could have wide application in the petroleum, electronics and auto industries. Like Professor Hsinchun Chen, named Innovator of the Year, Griebel has a dual focus – research and real-world applications that provide opportunities for business to innovate and thrive. Griebel, 25, developed a new material from waste products using elemental sulfur that can replace the costly fabrication of the lithium-sulfur battery. Griebel said his work could lead to the creation of economical, next-generation automobile batteries. The basis for the technology he is working on “goes back 50 years to when the oil industry took hold,” he said. “When no one expects you to be able to do it and apply it, it’s a great thing,” he said of his discovery. “We’re taking waste material and turning it into renewable energy.” Dozens of student research projects were displayed at the Innovation Day event. Among them was Woundmatics, a patent-pending technology that has the support of three private-sector investors. Woundmatics aims to save lives and millions in healthcare costs by reducing the amputations of toes, feet and legs in people with diabetes. The device captures thermal and visual images of wounds and analyzes them with patent-pending algorithms. The work is in collaboration with the UA’s Southern Arizona Limb Salvage Alliance. Other Innovation Day Honors Attorney Lawrence M. Hecker was honored as Technology Community Partner for his decades of work in capital formation, business startup and corporate finance. Attorney Donald Pitt received the Lifetime Achievement Award for his efforts as the longtime chair of Campus Research Corporation, as well as for helping UA to purchase the former IMB site which is now the UA Science and Technology Park. He was recognized for service on the Arizona Board of Regents from 1983 to 1994.
continued on page 56 >>>
Biz Summer 2013 > > > BizTucson 55
BizINNOVATION continued from page 55 Brown Research Corporation in Tucson in 1956 and led the firm for four decades. Burr-Brown was acquired by Texas Instruments in 2000. Sarah Smallhouse, president of the Thomas R. Brown Foundations, said, “Dr. Chen’s innovations will surely benefit mankind in important ways.” In May Chen was named Regents’ Professor – an elite accolade reserved for faculty members with exceptional achievements that brought national or international distinction.
Chen is “an innovator who is turning ideas into real impact,” Jessup said. The UA is committed to helping researchers like Chen take their innovations to market. That’s why it established Tech Launch Arizona, led by David N. Allen. It’s designed to centralize and expand a number of diverse functions around the university into a single focused resource. Tech Launch Arizona is developing a roadmap to demonstrate how inventions and knowledge developed by faculty
and students can be expedited into the market. The goal, Allen said, is to help intellectual property resulting from UA research benefit the world. Chen said that Tech Launch Arizona “will provide the support we wanted” to help commercialize university research. “While acknowledging the research that has been done – and the impact of a research institution this size – I think we can do more.”
Biz
Leading Edge Researchers Leading Edge researchers who demonstrate excellence in technology and innovation were recognized at University of Arizona Innovation Day 2013. They are: Dr. David Armstrong and Manish Bharara are developing smart wound imaging shoe insoles that would provide real-time feedback to manage foot pressure in diabetics and prevent amputation.
56 BizTucson
<<<
Summer 2013
Dr. Leslie Boyer oversees development of antivenoms to neutralize the effect of scorpion, snake and spider venoms. Lars R. Furenlid is developing methods and instrumentation for molecular imaging in live tissue to advance detection of cancer and heart disease with a minimally invasive method.
Salim Hariri is developing algorithms for cyber security to automate responses from computers, networks and information systems to alert the masses in cyber attacks and accidents. Raina M. Maier studies biosurfactants as “green” replacements for the more toxic synthetics used in food, pesticides, energy production, remediation, consumer electronics and medicine.
Biz
www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 57
One Step Closer to
By Gabrielle Fimbres Cindy Parseghian, President Ara Parseghian Medical Research Foundation 58 BizTucson
<<<
Summer 2013
PHOTO: CARTER ALLEN
Conquering NP-C
BizMEDICINE After nearly two decades of fundraising, research and devastating heartache, the Parseghian family is nearing the goal line in the effort to beat the rare genetic disorder that claimed the lives of three of their children. “Are we on the 10-yard line? I think so. The 5? Maybe. We are much closer than we were when we started the foundation,” said Cindy Parseghian, president of the Ara Parseghian Medical Research Foundation. The drug cyclodextrin, thought to slow – or perhaps halt – the progression of Niemann-Pick Type C, is in the first phase of human trials in a study overseen by the National Institutes of Health. Another less invasive but promising family of drugs – known as histone deacetylase inhibitors – are expected to go to trial in 2014. “We’d love to see it stop the disease in its tracks but more realistically it will slow its progress,” Cindy Parseghian said. The foundation, named for the famed Notre Dame football coach – who recently celebrated his 90th birthday – has raised more than $40 million since his grandchildren were diagnosed with NP-C in 1994. The Tucson-based foundation is funding 12 labs and has awarded more than 300 grants to researchers with the goal of finding a treatment and cure for NP-C, a fatal neurodegenerative disorder. It was hoped that a cure would be discovered in time to save the strikingly beautiful children of Dr. Michael and Cindy Parseghian. But they lost their battles before a cure could be found. Michael died in 1997 at age 9, Christa in 2001 at age 10 and Marcia in 2005 at age 16. The Parseghians’ eldest son, Ara, does not have the disease. He is in residency in anesthesiology in Maine, and he and his wife, Cicely Ott, expect their first child in October. In the initial stage of the cyclodextrin trial, nine children with NP-C are undergoing treatment. The drug must be administered through a reservoir in the brain. The drugs that appear headed for clinical trial next year can be adminiswww.BizTucson.com
tered orally. Cindy Parseghian is elated at the progress of the research. “It’s been a journey in so many ways,” she said. After it was discovered that the children had the disease, the family mobilized, knowing that millions of dollars would be needed to find a cure. They held huge fundraisers, with musical artist Amy Grant coming to Tucson. Some years, they raised as much as $3 million, and were funding labs at the University of Arizona and around the country and world. “Tucson has been so incredibly generous to us,” Parseghian said. While no longer as visible in Tucson, fundraising efforts remain vibrant, with the Parseghian Golf Classic held at Pebble Beach, plus bike races, rugby matches and a host of other events.
“
The only way we get through life is helping each other bear our crosses. –
”
Cindy Parseghian, President Ara Parseghian Medical Research Foundation
Fundraising efforts remain critically important. The foundation also funds the study of MRI images of the brains of children with NP-C and the development of a newborn screen. “It’s critical to start drugs before symptoms appear – and symptoms usually become evident between 5 and 10 years of age,” Parseghian said. “Our hope is to identify children at birth and have a drug available for them.” A blood test is being developed to detect the defective gene at birth. NP-C, thought to impact 500 to 1,000 children in the United States, stems from a genetic inability to metabolize cholesterol. Excess amounts of
cholesterol build up in the liver, spleen and brain. NP-C occurs when both parents carry one copy of the abnormal gene. When both parents are carriers, there is a 25 percent chance that their child will have the disease. Cindy Parseghian recently organized a conference in New York of 12 NP-C researchers. In June, the 20th annual Michael, Marcia & Christa Parseghian Scientific Conference for Niemann Pick Type C Research will be held at the University of Notre Dame. Research could impact other cholesterol-related diseases, including Alzheimer’s and heart disease. “We have to continue to fundraise to support the research that is still so critical,” she said. The Parseghians and their brindle standard poodles – Winston and Jasper – live in the foothills home where their children once played and thrived. Memories of the children fill the home. The coos of the mourning doves on the patio remind Cindy of the day they lost Michael, and purple – a hue Cindy wears often – will forever be Christa’s favorite color. She has taken up oil painting, and is working on a lovely portrait of Ara and his wife Cicely, dancing joyously on their wedding day. She paints in the girls’ sunny bedroom, which has not changed much since Marcia died. On the walls are murals of palm trees and bird of paradise. Dolls and stuffed animals fill the room. Dozens of crosses grace the walls of the master bath. There’s one from the original Notre Dame chapel, as well as crosses made by Ara, Christa and Marcia. “I keep them as a reminder,” Parseghian said. “The only way we get through life is helping each other bear our crosses.” The Parseghians are spurred on in their work by the memories of their sweet children. “One of the great things about being a mother is your children never leave you,” Parseghian said. “They are in your heart and soul. We would have loved for them to have had a full life, but they are always with us.”
Biz Summer 2013 > > > BizTucson 59
60 BizTucson
<<<
Summer 2013
PHOTO: CARTER ALLEN
Dr. Michael Waldrum CEO The University of Arizona Health Network
BizHEALTHCARE
Impeccable Credentials + Solid Track Record By Gabrielle Fimbres
Dr. Michael Waldrum has a vision for The University of Arizona Health Network – one that brings together the best in the industry to create this region’s premier academic medical network. Waldrum became UAHN’s first permanent CEO earlier this year after running one of the largest hospitals in the nation. He headed the University of Alabama Hospital at Birmingham and served as VP of its health system. There he was successful in growing the facility, the number of people served, profitability and service quality. Waldrum brings extensive medical and business acumen. He’s poised to grow UAHN. “I am a physician administrator and I have a passion around how organizations operate to provide excellence in healthcare,” Waldrum said. “I like to improve delivery organizations.” Formed in 2011, UAHN is the marriage of UA hospitals and clinics, the health plan division and the practice plan for physicians from the College of Medicine. “There are great things in front of us,” Waldrum said. “We can be the goto place in the Southwest – as far east as Texas, into Colorado, Utah and Nevada.” www.BizTucson.com
UAHN provides the structure to develop a premier healthcare network, he said. “If you are interested in building an integrated delivery system that improves the health of the population, all of the big building blocks are here. Now it’s time to put them together and build something that benefits the community and something the state can be proud of.” Steven Lynn, chair of the UAHN
“
We all believe – and Mike has already demonstrated – that he will have a major impact on the growth and development of UAHN as a major U.S. academic medical center. –
”
Ann Weaver Hart, President University of Arizona
board of directors, said Waldrum “was a very clear and unanimous choice” for the position. “His credentials are impeccable and they are somewhat unique,” Lynn said. “Mike is not only a physician and a very good one with training both at Mayo Clinic and Harvard in terms of his medical education – but he also has an MBA from the University of Michigan. That combination is somewhat rare and was specifically the combination we thought was most appropriate for the position.” He called Waldrum “a builder.” “Mike is not fond of maintaining a status-quo situation,” Lynn said. “He built a tremendous system in Birmingham over the last several years and saw this as an opportunity to build something very special here.” UA President Ann Weaver Hart said members of the search committee and the board “were deeply impressed by his commitment to academic medicine, his creative and adventurous spirit in pursuit of his own distinguished and eclectic education, and his understanding of and experience leading a superb academic medical center. continued on page 62 >>> Summer 2013 > > > BizTucson 61
“
I am a physician administrator and I have a passion around how organizations operate to provide excellence in healthcare.
”
– Dr. Michael Waldrum, CEO The University of Arizona Health Network
continued from page 61
“We all believe – and Mike has already demonstrated – that he will have a major impact on the growth and development of UAHN as a major U.S. academic medical center, contributing to the growth and development of education, research and clinical care in the College of Medicine as well,” Hart continued. “I am so enjoying working with him as an inclusive, insightful and expert partner in the health enterprise at the University of Arizona.” Waldrum seems to have settled right in. He has an autographed ball from the Wildcat basketball team in his office, presented to him the day he was introduced to UA supporters. This father of four moved to Tucson with Susan, his wife of 28 years, and their youngest child, Sarah Nance, 15. “We got married the month before I started medical school,” Waldrum said. “Susan has been a great life partner.” The Waldrums also have three older children – Annie, a nurse practitioner who lives in Boston with her husband, Hudson, who is completing his MBA at Harvard; Julia, who is getting her master’s degree in elementary education in Atlanta, and Michael, a student at Auburn University. Following his success in Birmingham, Waldrum said he was ready to make an impact at in UA. “When I was called about this opportunity I had been reflecting on my life and career and the desire to grow and learn,” said Waldrum, an intensive care physician and epidemiologist. “It was an opportunity to help an organization that has a tradition that’s strong – University of Arizona being such a world-class organization,” Waldrum said. “But the healthcare part of the organization has had a lot of turmoil over the last five years or so and frankly hasn’t been living up to its potential.” With no permanent CEO in place and turnover in administration at The University of Arizona Medical Center, the organization of 6,500 employees was in need of leadership, Waldrum said. “We must leverage the fact that we are the only academic medical center in Arizona. We educate the future leaders, continued on page 63 >>> 62 BizTucson
<<<
Summer 2013
www.BizTucson.com
BizHEALTHCARE continued from page 62 we do innovation and research and we have very high-end services that the community needs – including transplant and Level 1 trauma services,” Waldrum said. The network also serves as the safety net provider to those who are uninsured or underinsured – a pressing issue with the implementation of the Affordable Care Act and questions surrounding the state’s expansion of its Medicaid program known as AHCCCS. “If we expand and we cover the population, the health of the population will be better,” Waldrum said. If Medicaid is not expanded, the network would face significant budget cuts. “We spend a lot of money taking care of patients who cannot afford it – because we think it’s the right thing to do,” he said. “We also spend a lot of money to educate physicians and we don’t get reimbursed for their education time. If reimbursement goes down, we will have to make cuts.” He said the uncertainty “makes us look at doing things differently than we have in the past and find ways to improve efficiencies and processes of care – and that’s good.” Waldrum said he was drawn to the “great tradition of care” at UA. He was gifted with a yellowing copy of a newspaper section produced when the hospital opened in 1971. “You can see the pride the community has around this organization,” Waldrum said, flipping through the newspaper. Among the greatest recent successes is the growth at what was once Kino Hospital, now UAMC-South Campus. “The old Kino was on very shaky ground,” he said. “It is now a vibrant and exciting place with a great culture. We have very strong physician and nursing and other staffing, providing a significant amount of high-level services.” There is also great opportunity at UAMC-University Campus – the 479-bed hospital that is ranked among the nation’s top hospitals by U.S. News & World Report and typically ranks among the top 10 percent of academic medical centers for quality. Waldrum said UA is known for success in trauma, transplant and innovation around new surgical procedures and robotics, among other specialties. “We have great research in a number of different areas and we are looking at finding new tests to diagnose diseases earlier. “Our goal and objective is to create a place that patients, scientists and physicians in the Southwest are talking about.” Waldrum said the business community is an important partner. “From an economic development standpoint, if you are trying to recruit a large company to a community, one of the first things most CEOs want to know is will their employees have access to excellent care?” Waldrum said. He has met with members of Southern Arizona Leadership Coalition and Tucson Regional Economic Opportunities, as well as county leaders and the mayor. “I see great things for Tucson and UAHN,” Waldrum said.
Biz
www.BizTucson.com
Summer 2013 > > > BizTucson 63
Photos courtesy of DESERT DIAMOND CASINOS
BizBENEFIT
$130,000
for Tribal Charities By David B. Pittman The 10th anniversary Desert Diamond Casinos Golf Classic benefitting Tohono O’odham Nation Charitable Organizations was the biggest and best ever. More than $130,000 was raised in the event – easily surpassing the $102,000 record set in 2012. “We are very excited by these results,” said Treena Parvello, director of public relations and communications for Tohono O’odham Gaming Enterprises. “We have wonderful sponsors and wonderful partners that helped us make this year’s event so successful.” Beneficiaries of the charitable fundraising effort include: • Tohono O’odham Community College, one of only two tribal community colleges in Arizona. TOCC pri64 BizTucson
<<<
Summer 2013
marily serves residents of the Tohono O’odham Nation, but welcomes anyone pursuing a higher education. • The Tohono O’odham Cultural Center & Museum, a state-of-the-art facility in Topawa that promotes understanding and respect for O’odham values and way of life through educational programs and public outreach. • Indian Oasis Baboquivari Unified School District, which provides K-12 public education for 966 students throughout the Tohono O’odham reservation in Pima County. Parvello said proceeds from the event will be used for education and preservation of the Tohono O’odham culture – “important areas that the nation and
the enterprise of the nation want to support and emphasize.” The two-day Desert Diamond Casinos Golf Classic was not just about golf, but also featured fine food, a raffle and the opportunity to shop at a special Nike Golf Store. The benefit started with an evening kickoff party at the Desert Diamond Casino & Hotel. The golf outing began the following morning at Omni Tucson National Golf Club Resort, which was followed by an awards luncheon and the raffle. Corporate sponsorship packages, ranging from $500 to $15,000, were available. Parvello said major sponsors of the event were Delta Diversified Enterprises, Shamrock Foods and the Penta Building Group.
Biz www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 65
BizBRIEF
UAHN Names Boreale Marketing Director Stephanie Boreale is now director of marketing and network outreach for The University of Arizona Health Network. Boreale is responsible for planning and directing system-wide strategic marketing and outreach efforts to build physician relationships within and across UAHN. Prior to joining UAHN, Boreale served as director of professional relations at Radiology Ltd., a position she held for the past decade. She also served as marketing coordinator at Lindquist, a CPA firm in San Francisco. Boreale’s professional affiliations include the International Business Council, where she was national director of operations in 2012. She was national marketing committee chair for Radiology Business Management Association in 2012 and she has been involved with Tucson American Marketing Association, where she served as president in 2007. She’s presented at national conferences and events. A graduate of St. Mary’s College in Notre Dame, Ind., Boreale earned a bachelor’s degree in business administration with a focus on communications in 2001. She was an exchange student at the University of Rome in Italy, served as a marketing intern for Waterford Crystal in Ireland and was an English teacher at Wuyi University in Jiangmen, China.
Biz 66 BizTucson
<<<
Summer 2013
www.BizTucson.com
FALL 2012 SPECIAL REPORT 2013
THE REGION’S BUSINESS MAGAZINE
WHY THE WORLD
VISITS TUCSON NEW BRAND
FOR REGION’S $2.4 BILLION TOURISM INDUSTRY www.BizTucson.com
68 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 69
70 BizTucson
<<<
Spring 2009
www.BizTucson.com
www.BizTucson.com
Spring 2009
>>>
BizTucson 71
www.BizTucson.com
Spring 2009
>>>
BizTucson 73
Free Yourself COVER PHOTO & PHOTO: WILLIAM LESCH
The ability to see ourselves as others see us is a rare gift, the poet Robert Burns observed. But a good marketing firm can provide its clients with that information. MMGY Global, the agency tasked with creating a new brand for Tucson and Southern Arizona, let us view the outsider’s perspective. Better yet, they used it to create an identity that mirrors the way we see ourselves. “MMGY approached Tucson with an open viewpoint. They listened and learned,” said Kate Jensen, University of Arizona assistant VP for marketing. “The way they described Tucson is the way we feel about the city at the University of Arizona – unpretentious, open-minded and authentic.” From the echoing nods and murmurs, it was clear that the key assets of the brand MMGY presented at the Visit Tucson offices in April – to be fleshed out by June 13 – resonated with others too. That in itself is a rare gift, considering the diverse
74 BizTucson
<<<
Summer 2013
business interests and political views represented around the room. Bit of a Mystery No question. Tucson has what it takes to be a visitor magnet – warm dry weather, heart-stopping sunsets, boundless desert and mountain playscapes, cultural clout, science-geek cred, the most authentic Mexican food north of the border… and that’s just for starters. Yet we are consistently outflanked by competing cities – and not only because they have substantially higher budgets to promote their destination than we do (see “The Importance of Support” sidebar page 76). It was essential to find out why. Brent DeRaad, president and CEO of Visit Tucson, said, “The tourism industry has an enormous impact on Tucson and Southern Arizona. It employs nearly 22,000 in Pima County
BizTOURISM
in
Tucson
and generates more than $2 billion annually in direct travel spending.” He added, “The bed- and sales-tax revenue paid by travelers goes to municipal, county and state coffers and helps to pay for government services for all of us.” In spite of the importance of tourism to the community, the community has not always been as involved as it could have been in tourism decisions. That changed in 2010-2011, when the Metropolitan Convention and Visitors Bureau – as Visit Tucson was formerly known – underwent a performance audit. Tom Tracy, an influential member of Pima County Audit Committee, said one of the primary recommendations was that the tourism bureau go through a rebranding process – with lots of local input. “The new leadership on the board of MTCVB was very responsive to the findings,” Tracy said. “Brent got his team to
www.BizTucson.com
By Edie Jarolim
adopt the recommendations of the audit and did so in an extremely transparent manner. His approach was ‘we’re partners – and we want your feedback,’ ” said Brian Johnson, managing director of Loews Ventana Canyon, who chaired the audit committee, then served on the committee that selected MMGY. The selection committee assembled in late 2012 “was a who’s who of hospitality,” he said. It included tourism, sports, economic development and marketing industry professionals. A call for proposals was issued. Destination marketing agencies from across the nation, including several from Tucson and Southern Arizona, submitted plans. From these, the committee selected four top candidates to come to Tucson. MMGY Global was the unanimous final choice. UA’s Jensen was on the selection committee. “This was a very formal process,” she said. “There were strict grading criteria. All the firms we interviewed had expertise in branding and continued on page 76 >>>
Summer 2013 > > > BizTucson 75
BizTOURISM
“
BizFACTS The Importance of Support Tucson has a great new brand to promote – but it will take money to implement it effectively. We come up short against our top competitors whose budgets are millions higher than ours.
• Santa Fe $13 million • Phoenix $12.6 million • Scottsdale $12 million • Palm Springs $7.8 million • Tucson $6.5 million* * Down from $10 million before the recession Brent DeRaad, president and CEO of Visit Tucson, said, “It is our job at Visit Tucson to secure the resources needed to push out our new advertising campaign. We are working with our public-sector partners and the private sector to find additional revenue to place our advertising frequently to targeted customers.” Luckily, Visit Tucson has partners like Pima County, the City of Tucson and the Town of Oro Valley, who understand the importance of supporting tourism – and visitors bureaus. Oro Valley made a three-year financial commitment to Visit Tucson – $75,000 in this first fiscal year, $120,000 for the following year, $175,000 for the third. Greg Caton, Oro Valley town manager, said, “We recognize the return on the dollars spent. Unfortunately, when there’s a recession, one of the first things people do is cut back on their advertising and marketing. We need to be more bullish and invest.” Caton sees the partnership with Visit Tucson as hugely beneficial. “Lynn Erickson, the general manager of the Hilton El Conquistador, for example, tells me how many rooms he gets from Visit Tucson. It’s a significant portion of their business.” Visit Tucson also helped with branding the town’s new aquatic center, and with landing an event for it that will have a significant impact on Oro Valley’s economy – the 2014 national synchronized swimming competition.
Biz <<<
Summer 2013
”
Michael Luria, Board Chairman, Visit Tucson continued from page 75 –
Tourism bureau budgets in 2013 • San Antonio $20 million
76 BizTucson
The brand we’re creating for Tucson and Southern Arizona captures the essence of the region. marketing for tourism – but MMGY was the clear leader.” One of the clinchers was the firm’s proprietary Portrait of American Traveler Survey, which has served as an important tool for travel marketers for more than two decades. Jensen said, “By choosing MMGY, we were getting access to industry data that we would not otherwise have been able to afford.” Another of the agency’s strengths is its use of destination-specific data. As Steve Cohen, VP of insights at MMGY, put it, “Instead of aiming a tourism campaign at what we think people want, we address actual statistics.” This targeted approach is essential for a visitors bureau with budget limitations. Allison Cooper, VP of marketing for Visit Tucson said, “We can’t work harder, so we have to work smarter.” Getting to Know Us In January 2013, the MMGY team met with more than 100 Tucson stakeholders, some of them in one-on-one sessions, some in groups. Tracy, who took part in a group session as president of The Lodging Company, said the broadest definition imaginable for the term “stakeholder” was used. “It ran the gamut of people who serve the visitor industry in Southern Arizona, from motor coach operators to restaurant managers,” Tracy said. “People from law firms, the retail industry, the university, elected officials… virtually every aspect of the community was represented.” Cooper helped MMGY locate the stakeholders who wanted to participate in the process – but then the visitors bureau stepped aside. Chris Davidson, MMGY’s executive VP of global strategy and client leadership, said, “We wanted this to be a candid forum, to learn not only what makes the place special but also what the hurdles to visitation are. We don’t want people to think they have to say ‘the right thing’ for the CVB.” Tracy said his group discussion “was thought provoking and very well done.” He added, “This is the first time community focus groups were used to find out about local perceptions of the market. That was a major theme in the Pima County audit and I personally am very gratified at seeing the process that was undertaken.” More local feedback was gathered from a Residents/Advocates Open Survey posted on VisitTucson.org and completed by 331 residents and 97 non-residents. During their visit in January, members of the MMGY team also formed their own impressions of the city by doing what visitors do – only more of it and faster. The Way Others See Us In April, MMGY returned to Tucson to share the results of their research. In addition to the local stakeholder interviews and the online survey, this research included an analysis and profile of prospective visitors – continued on page 79 >>>
www.BizTucson.com
Summer 2012 > > > BizTucson 77
BizTOURISM
If We Build It, They Will Come By Edie Jarolim “I think cities often tragically misinterpret what’s coolest about themselves,” wrote Anthony Bourdain, a chef, author and TV personality known for visiting a lot of cool cities. “They scramble for cure-alls, something that will ‘attract business’ and always one convention center, pedestrian mall or restaurant district away from revival. They miss their biggest, best and probably most marketable asset – their unique and slightly off center character.” That’s certainly been true of Tucson – and recognizing this is an important first step. We still face the challenge of conveying our unique and slightly off-center character to others. MMGY Global provided the tools to do that – a brand architecture that can be used to build everything from logos, ad copy and on-target messaging to a full-blown advertising campaign. To use another metaphor, think of it as a filter through which to view our assets. Take, for example, the phrases in the brand experience column of the brand architecture chart: • “Freedom to roam” taps into the facts that we are a cycling mecca, have an extensive hiking and trail system, offer challenging rock climbing. Even golf fits into that picture, when you think about roaming the greens in a cart.
• “Surroundings that surround you” is a way to approach resorts that are built into nature. • “Open minds” suggests everything from our roles as university town and progressive arts community to geotourism attractions such as stargazing and attracting innovative thinkers. Then there’s the brand voice: • Using terms like “offbeat” keys into quirky festivals like the All Souls Procession and the World Margarita Championship, which in turn evoke our Mexican heritage. • “Offbeat” also suggests off the beaten path, which transforms the fact that we have fewer direct flights than many of our competitors into an asset. • It’s hard to find any group more “unpretentious” than cowboys, who highlight our Western culture strength. You get the idea. Though it’s crucial for Visit Tucson, along with everyone else in the community who benefits from tourism, to promote this vision of our destination, we are also creating an identity that inspires others to do our marketing for us through social media. Who wouldn’t want to post pictures of themselves kicking back in a destination as cool as Tucson on Facebook?
Who Knew? Tucson has new destination-specific tourism research. Until this year the local tourism bureau relied primarily on statewide data from the Arizona Office of Tourism. In addition to the broad-scope research conducted by MMGY Global, Visit Tucson conducted other smaller research projects over the past year. One was a visitor analysis of 165,000 leisure guest records from travelers who stayed at 19 hotels and resorts throughout the metro area between June 1, 2011 and May 31, 2012. Of those, 88,000 stayed at resorts. The big surprise? The top-spending market was New York City. Those travelers spent a total of $8.4 million. Those from Los Angeles, San Francisco and Chicago followed with total expenditures for the year in the $5 million range. “Using this data, we can identify the top-performing zip codes within our feeder markets,” said Allison Cooper, Visit Tucson’s VP of marketing. “This is a much more affordable and effective marketing approach than advertising to an entire city.”
Brand Architecture for Tucson
78 BizTucson
<<<
Summer 2013
www.BizTucson.com
“
Instead of aiming a tourism campaign at what we think people want, we address actual statistics. –
”
Steve Cohen, VP of Insights, MMGY Global
continued from page 76
specifically, people who said they were interested in visiting Tucson in the next two years – broken out from the larger 2013 MMGY Portrait of American Travelers study. MMGY also visited two key markets, Chicago and Denver, and spoke with three- or four-person groups of past and prospective visitors. Davidson emphasizes the importance of taking the consumer’s perspective into account. “The mind of the consumer is where the brand exists,” he said. “Not all agencies conduct these types of interviews, and we think that’s an incredible miss.” Throughout, Tucson was compared to five cities that share our tourism turf – Scottsdale, Phoenix, Santa Fe, Palm Springs and San Antonio. The good news is that everyone perceived Tucson favorably. However, with just one exception, this designation did not lead the pack in any one asset. For example, Santa Fe was cited more frequently than Tucson in such categories as “Southwestern,” “influenced by Native American cultures” and “spiritual,” while San Antonio ruled the “historical” and “Western” arenas. In marketing parlance, we didn’t “own” any of these qualities. Similarly, while Tucson was considered an appealing vacation destination, we weren’t “top of mind.” MMGY’s Davidson said, “Tucson gets a lot of positive feedback from people in things that are important to them about their leisure travel experience like warm weather, spas and mountains. But when we asked them where they would choose to go, much more often than not their first answer was another city.” For a brand to succeed, it needs to elicit a visceral response in potential visitors. Taking all the complex data they gathered into account, MMGY arrived at a way to elicit this response, and it played on the sole feature that distinguished us from our competitors – a lack of pretentiousness. The crux of the new brand is that Southern Arizona is a place where you can free yourself, where you can feel welcome and relaxed in your own skin. This concept, in turn, can be used as a way to approach our myriad other strengths – including some that are less widely known than they should be. Not many outsiders are aware, for example, that Tucson is a university town with an abundance of outdoor activities. (For more details, see the “If You Build It They Will Come” sidebar on page 78.). continued on page 81 >>> www.BizTucson.com
Summer 2013 > > > BizTucson 79
80 BizTucson
<<<
Summer 2013
www.BizTucson.com
BizTOURISM
“
This is going to pay big dividends for Tucson in the future. – Brian Johnson Managing Director Loews Ventana Canyon
”
The Follow Through Visit Tucson’s executives couldn’t be more pleased with MMGY’s results. “The brand we’re creating for Tucson and Southern Arizona captures the essence of the region,” said Visit Tucson Board Chairman Michael Luria. Cooper welcomes “the opportunity to craft an identity for Tucson that is unique, ownable and compelling.” Crucially, as the reaction to MMGY’s presentation to stakeholders at the Visit Tucson offices made clear, the community members who will reap the benefits of the new brand are very enthused about it, too. “This is going to pay big dividends for Tucson in the future,” said Ventana’s Johnson, who was impressed with the methodology and with DeRaad’s leadership “to take the time and do this the right way.” Tracy of The Lodging Company approves MMGY’s message. “The underlying theme is to embrace who we are – not imitate the strengths of other tourist destinations. It sounds simple but it really isn’t,” he said. “Everybody should make this brand their own and include it in their advertising, their public relations, their marketing and even in their operations.” If Tucson is smitten with MMGY, the feeling is mutual. MMGY’s Davidson said, “We have been incredibly impressed with how Tucson has come together around this project. We’ve gotten the sense that there is buy-in – and that buy-in only comes through strong leadership at the top, reinforcing the importance of this type of process for building a tourism market. I give Brent DeRaad and Allison Cooper a tremendous amount of credit.” Biz www.BizTucson.com
PHOTO: WILLIAM LESCH
continued from page 79
Selection Committee One of the primary recommendations of the Pima County Audit Committee was that the tourism bureau go through a rebranding process – with lots of local input. These are the members of the selection committee that unanimously chose MMGY Global. • Michael Luria, Executive Director, Children’s Museum Tucson and Chair of Visit Tucson Board of Directors • Kate Jensen, Assistant VP for Marketing, University of Arizona • Laura Shaw, Senior VP of Marketing & Communications, Tucson Regional Economic Opportunities • Brian Johnson, Managing Director, Loews Ventana Canyon • Tim Vimmerstedt, Director of Operations & Community Affairs, Pima Air & Space Museum at the time, now Director of Marketing, Visit Tucson • Jim Tiggas, Founder/Director, Tucson Invitational Games • Allison Cooper, VP of Marketing, Visit Tucson The panel was advised by Jim Flynn, who operates FMC Marketing in Scottsdale. Flynn has extensive experience in destination marketing and advertising. Summer 2013 > > > BizTucson 81
BizTOURISM
Tucson’s DNA By Joan Liess
Lucky us. As residents of Southern Arizona, we’re right in the heart of one of the most distinctive landscapes on planet Earth. We’re also neighbors to a trove of historic and cultural treasures. As a once-upon-a-time visitor, I remember gaping in wonderment at a giant saguaro, and standing humbled beneath the hand-painted frescos inside Mission San Xavier del Bac. And, ahhhh, there’s that organic easiness of Tucsonans. Is it time to fall in love with Southern Arizona all over again? The hub of our world – Tucson – has lured vacationers, explorers, health seekers, academics, filmmakers and entrepreneurs to Southern Arizona for decades. Climate and cowboys were the migration and tourism bait in the roaring ’20s. Today there is more – so much more – for residents, newcomers and travelers alike. Visit Tucson’s new research shows that Tucson is like no place else – precisely what made us fall in love with the region. And it is exactly what travelers are seeking – an uncommon place where they can be free to just be. “For the first time we have regionspecific research on which to build our brand,” said Brent DeRaad, president and CEO of Visit Tucson. “This goes beyond a new ad campaign. This is the essence of who we are. This is our DNA.” So where does Visit Tucson go from 82 BizTucson
<<<
Summer 2013
here? Stay tuned. New branding that ties the rational to the emotional is one key. Yet our mountains and saguaros, missions and museums, fiestas and urban hipness will continue to be the credibility behind the lure. Only in Tucson can you find so much to free the spirit and restore the soul. Free to Discover The Dazzle of the Desert There’s something magical about the Sonoran Desert that has drawn people here for centuries. Native Americans came to farm. Folks with tuberculosis and asthma came to breathe easy. Now the world-weary come for the healing energies of our destination spas, resorts and retreats. Mel Zuckerman, founder of Canyon Ranch recently published a love letter to this place. “I felt a sort of energy coming from you, from what I think of as the 1. Kitt Peak National Observatory 2. Ventana Canyon 3. J.W. Marriott Starr Pass 4. Folklorico dancers 5. Hotel Congress 6. Titan Missile Museum 7. Mission San Xavier del Bac 8. Omni Tucson National Resort 9. Tucson sunset 10. Tucson stargazing Photos Courtesy Visit Tucson
spirit of the land. Bathed in that energy, I instantly felt comfortable here... I can’t tell you how many people have come to visit the ranch having never heard of you – and who’ve ended up moving here. They feel what I felt and still feel.” Tucson has rightly claimed the giant saguaro as its icon. This is “home to North America’s largest cacti, the universal symbol of the American West,” according to the Saguaro National Park website. Here the saguaro is not only venerated – but officially protected in the park. The glories of the desert surround us. The Arizona-Sonora Desert Museum showcases its wonders, from animals and plants to bugs and snakes. In January the museum expanded its focus to include the importance of water in the biologically rich Sonoran Desert with the opening of the Warden Aquarium and its Rivers to the Sea exhibit. Craig Ivanyi, executive director of the museum, said it is “known internationally and continues to place Tucson on the world map, similar to how the Grand Canyon garners attention for Northern Arizona.” What other place offers such beautifully nurtured in-town natural habitats – including Tucson Botanical Gardens, Tohono Chul Park and Agua Caliente Park. As its name suggests, Agua Caliente hosts a perennial warm spring within the 101-acre park. continued on page 84 >>>
1
2
3
4
5
6
7
8
9
www.BizTucson.com
10
Summer 2013 > > > BizTucson 83
BizTOURISM How We See Ourselves More than 100 local tourism stakeholders participated in research to define the essence of Tucson. Here’s what we said: “The city’s proximity to Mexico has helped shape its progressive culture and heritage. It is an incredibly diverse, tolerant and welcoming destination for visitors from all cities and countries.” “Our culture is not about a particular flavor – but the intensity of those flavors together.” “Tucson is bold and colorful. Vibrant sunsets, surrounded by mountain ranges, lots of wildlife and desert flowers in the spring.” “It’s not about your room when you visit Tucson. You want to spend all of your time outdoors.” “We are the pure Sonoran Desert. You won’t find a lot of palm trees and watered lawns in Tucson.” “Tucson advertising from the 1920s focused on wellness. This was the birthplace of the healthy lifestyle movement.” “We live in an outdoor playground.” “The saguaros and mountains create an icon for Tucson – not the city center.” “The cycling loop, bike events and training in this area have primed Tucson to be a platinum biking community.” “People think we are just like Phoenix – but we are much more authentic and natural.”
84 BizTucson
<<<
Summer 2013
continued from page 82 Free to Bike, Hike, Climb, Fly “The Western Governors’ Association reports that outdoor recreation in 19 Western states results in $256 billion in direct spending – and 2.3 million jobs,” said County Administrator Chuck Huckelberry. Outdoor recreation plays an important role in the economic impact of tourism. That’s one reason Pima County developed The Loop – a 131mile, shared-use path along the Rillito and Santa Cruz rivers and their tributaries, attracting trail users who walk, run, ride horses, ride bikes, view wildlife and watch birds. More than one third of the metropolitan population lives within a half mile of The Loop or Loop extended paths. Tucson has a whopping 325 miles of striped bike lanes within the city limits, and hundreds more in the surrounding areas – one reason why Outside Magazine crowned Tucson the best roadbiking city in the country in 2010. El Tour de Tucson, the 111-mile perimeter cycling event, is the granddaddy of Tucson’s bicycling events, thriving for three decades, now attracting about 9,000 cyclists. Exploring Tucson’s five mountain ranges can be as adventurous as you choose. Casual trekkers enjoy the paved trail at Sabino Canyon and heavyweight hikers like the 10½-mile Catalina State Park’s Sutherland Trail, which traverses to the top of the mountain. Ultra adventurous? Cliffs, crags and pinnacles await the arduous on some 1,500 climbing routes on Mount Lemmon. Up, up and away. Trip Advisor, based on traveler reviews, lists balloon excursions as the No. 1 adventure activity in Tucson. “We popped up into the air just as the sun was rising – making it one of the most spectacular ever,” wrote one reviewer. Free to Dig the Downtown Vibe Take a one-minute tour of downtown Tucson on Pinterest and you’ll get an immediate sense of how colorful, quirky and multi-cultural our city center is – and why visitors dig it as much as we do. Yes, downtown is way cool again. Over the last decade, visionary business leaders and individuals with creative passions have ignited an urban renaissance. The restored Fox and Rialto theatres, lively Club Congress, revitalized arts warehouses and a wave
of ingenious new eateries are adding even more flavor to downtown life. Locals and tourists alike explore 25 historic sites along downtown’s Presidio Trail on wheels or by foot. Hop on a selfbalancing, battery-powered Segway PT scooter for a guided tour – or download the Presidio Trail self-guided walking tour map from VisitTucson.org. Both options include the Fourth Avenue shopping district, the Historic Tucson Train Depot, Presidio San Agustín de Tucson and the Barrio Viejo streetscape. Every great city has a signature event and the Tucson Gem, Mineral & Fossil Showcase is our gem. Show sites dot every square inch of open space in downtown and beyond. “There are dealers and buyers from literally all over the world,” said Jane Roxbury, Visit Tucson’s director of convention services. “Our entire team promotes and supports the event. Every show owner is a Visit Tucson client. We are dedicated to keeping the showcase right here in Tucson.” The first show was in 1954. Did you know… The San Francisco Chronicle thinks downtown Tucson is hip? This May a reviewer wrote, “Tucson is skewing younger and hipper with coffeehouses, restaurants, shops and an artists’ neighborhood that boasts a remarkable bike shop without any attitude.”
Free to Listen to Bird Songs At last count, 248 bird species dwell or fly through Southern Arizona – which means thousands of birders flock here to document sightings of species, listen to their songs and study their natural habitats. This is a lucrative year-round niche market. This is bird haven – from urban parks to the Sweetwater Wetlands, Madera and Ramsey canyons and the 57,000acre San Pedro Riparian National Conservation Area in Cochise County, again designated as a Globally Significant Habitat for Birds by the Bureau of Land Management and the Audubon Society. Best bird calls – January’s Wings Over Willcox Birding & Nature Festival celebrates the arrival of more than 20,000 wintering Sandhill cranes, hawks and sparrows. The Tucson Bird & Wildlife Festival convenes in mid-August – a peak birding season that boosts our lowseason hotel occupancies.
MMGY Global’s in-depth research reminded us that we live and work in a hugely desirable travel destination. Vicki Doyle, Visit Tucson’s VP of community relations and visitor services said, “Our stakeholders in the tourism industry are really thrilled with this rebranding process. It’s energized us all.” Free to Giddy Up and Go Cowboys do live and work here. Area ranches, attractions and events bring the real and the Hollywood versions of the West to life. Jackie Ludwig, Visit Tucson’s director of tourism, assists international tour operators in packaging Tucson attractions. “Our Old West heritage is a prime motivator for European and Asian markets – it’s uniquely American and very much alive in Southern Arizona,” she said. Yip! Yip! is a phrase unique to the language of the working cowboy – and on occasion – to corporate executives who drive cattle at the century-old Cocoraque Ranch in Avra Valley. Owner and working rancher Jesus Arvizu partners with hoteliers to create customized corporate outings for travelers and locals. Old West recently met New West at White Stallion Ranch when the largest private solar farm in the Tucson area was installed there. Co-owner Russell True notes on his website the panels power 35 to 40 percent of the electricity for the guest ranch, one of 10 in the area. February’s La Fiesta de los Vaqueros Tucson Rodeo and Parade is a Tucson tradition since 1925. This annual celebration of the cowboys, “gives people a way of touching the West – seeing, feeling and getting close to it,” said the rodeo’s GM Gary Williams. Did you know… Famed movie location Old Tucson hosts weekend tours of its sister site at Mescal near Benson March through June. “Tombstone,” “The Life and Times of Judge Roy Bean” and “The Outlaw Josey Wales” are just a few of the biggies filmed there. “Our close proximity to Hollywood, abundant sunshine and diverse location possibilities continue to attract a growing portion of the entertainment industry market for all genres,” said Shelli Hall, director of the Tucson Film Office.
continued on page 86 >>>
1
2
3
4
1. El Tour de Tucson 2. Fox Tucson Theatre 3. Yoga in the desert 4. Sunset in the desert Photos Courtesy Visit Tucson
Summer 2013 > > > BizTucson 85
BizTOURISM continued from page 85 Free to Explore Heaven & Earth Tucson’s long been known as the astronomy capital of the world. Southern Arizona’s clear skies and minimal light are ideal for stargazing – for amateurs and professionals alike. Astronomy started here in the early 1920s at Steward Observatory on the University of Arizona campus. Kitt Peak National Observatory, founded in 1958, hosts the largest collection of optical telescopes in the world. Atop Mount Graham at almost 11,000 feet is the world’s most powerful telescope – the Large Binocular Telescope. Visitors also can tour the Fred Lawrence Whipple Observatory on Mount Hopkins in the Santa Rita Mountains. Mount Graham International Observatory is a division of Steward Observatory, the research arm of the UA Department of Astronomy. The Mount Lemmon SkyCenter operated by UA hosts the popular SkyNights program every clear night of the year. On campus, Flandrau Science Center & Planetarium invites you to explore our universe from Earth to space. Examination of a simple cleft in a rock by two local cavers in 1974 led to the discovery of the stunning formations of Kartchner Caverns, 40 miles southeast of Tucson. Kartchner Caverns State Park has an education-focused visitor center and allows a prescribed number of visitors into this highly fragile living cave. Tour reservations are a must. History stars at Colossal Cave Mountain Park in Vail. The dry cave was home to Hohokam Indians from 9001450 A.D. During the Wild West days of the 1880s, it was a hideout for outlaws. Joaquin Ruiz, UA College of Science dean and VP of innovation and strategy, likes to call Tucson “Science City.” “What drives me is learning. I just love to learn. I love this place. I love the informality. I love the culture.” Did you know… There’s an
ocean and a tropical rainforest near Tucson? The UA’s Biosphere 2 is a living science center dedicated to lifelong learning about the Earth. Sustainable lessons abound on the guided tour through five ecosystems in the 7.2-million-square-foot sealed glass enclosure. A lodge and conference center facilitate scholarly events.
86 BizTucson
<<<
Summer 2013
Free to Savor Authentic Cultural Experiences As one of the oldest continuously inhabited cities in the United States, Tucson offers multi-cultural experiences that enrich the lives of travelers and locals. Looking for prehistoric Indian sites, a Cold War missile, funky art installations, a children’s museum, mariachis, classical musicians or ethnic foods? You’ll find them here. This city is known for folk festivals, historic missions, contemporary and Western art and off-the-beatenpath treasures.
What’s Happening Today in Tucson? Just “like” the Visit Tucson Facebook page and follow @ VisitTucsonAZ on Twitter to get updates on everything new and now and happening around town. Smartphone users can access the mobile-friendly website at www.VisitTucson.org or download the app for Uniquely Tucson Destination Downtown. It’s like having a digital concierge at your fingertips.
Check out the VisitTucson.org website for hundreds of examples. Here’s a sampling: History – The UA’s Arizona State Museum is the oldest (1893) and largest anthropology museum in the Southwest. The Arizona Historical Society is nearby. Fort Huachuca in Sierra Vista is an active Army base built in 1877 and includes the Historical Museum and U.S. Military Intelligence Museum. Art – Tucson is one of American Style’s Top 25 Art Destinations. MOCA – the Museum of Contemporary Art – is a repurposed exhibit space in a onetime
fire station. UA collections include the Center for Creative Photography and UA Museum of Art. The Tucson Museum of Art is downtown. First Saturday Art Walks direct you to nearby galleries and artists studios. The Mini-Time Machine Museum of Miniatures with 275 teeny-tiny houses and room boxes is “peculiar, surprising, and delightful,” according to one visitor. Festivals & Events – Eclectic for sure. Nowhere else will you find the All Souls Procession, Dillinger Days street festival, Tucson Jewish Film Festival, International Mariachi Conference, Yaqui Easter Ceremonies, Tucson Meet Yourself, Tucson Pima Arts Council Open Studio Tour – and festivals for bluegrass, blues, jazz and chamber music. You get the idea. Missions – Mission San Xavier del Bac is a masterful example of Tucson’s Spanish Colonial influence. Known as the White Dove of the Desert, it continues to serve descendants of the Tohono O’odham for whom the mission was founded in 1692. Further south along the Juan Bautista de Anza National Historic Trail, Tumacácori National Historic Park protects three Spanish Colonial adobe mission ruins. Airplanes & Missiles - The Pima Air & Space Museum has more than 300 aircraft and spacecraft – and you can rent a hangar for a one-of-a-kind catered event. Standing in the official Air Force One for presidents Kennedy and Johnson is a moving touchpoint. On an eerie note, there’s one place in the world where you can stand on the front line of the Cold War – the Titan Missile Museum in Sahuarita. This preserved site is all that remains of the 54 Titan II missile sites on alert across the U.S. from 1963 to 1987. Free to be Tucson “Where you go says a lot about you,” according to MMGY Global, the agency charged by Visit Tucson to develop a new travel brand for Tucson and Southern Arizona. So what do visitors to Tucson reveal about themselves? “They’re genuine, personal and freespirited,” said Allison Cooper, Visit Tucson’s VP of marketing, “which is the essence of who we are as a community.” That’s a match made in marketing heaven.
Biz
www.BizTucson.com
VISIT TUCSON BOARD OF DIRECTORS Executive Committee Chair
Michael Luria Executive Director Children’s Museum Tucson
Town of Oro Valley Brendan Burns Council Member
Vice Chair
City of Tucson Shirley Scott, Ward 4 Tucson City Council Hospitality/ Visitor Services
Secretary
Alex Ahluwalia, GM* JW Marriott Starr Pass Resort
Barbara Peck, Owner Barbara Peck Public Relations Paul Zucarelli, President CBIZ Benefits & Insurance Services
VISIT TUCSON LEADERSHIP TEAM
John Cousins, GM BW InnSuites Tucson Foothills
Marion Hook, Innkeeper** Richard Bratt, CPA Adobe Rose Bed Shareholder, COO & Breakfast BeachFleischman Heather Lukach Member at Large Administrator Helinda Lizarraga UA Presidential Events Director of Hotels & Visitor Services Focus Hospitality Reini Marsh, President Management Southern Arizona Member at Large Attractions Alliance Pete Mangelsdorf Craig Martin, GM** CEO & GM Aloft Hotel Old Tucson Treasurer
Immediate Past Chair
Lynn Ericksen, GM Hilton Tucson El Conquistador Resort General Business Mike Feder, VP & GM Tucson Padres
Russell True, Owner White Stallion Ranch Mark VanBuren, President Southern Arizona Lodging & Resort Association Members at Large
Tom Firth, Owner Hacienda del Sol Guest Ranch Resort
Jim Di Giacomo, Executive Director Green Valley/Sahuarita Chamber of Commerce
Fred Gould, Marketing Manager Arizona Shuttle
Richard Gruentzel, VP Admin & Finance/CFO Tucson Airport Authority
Craig Ivanyi Executive Director** Arizona-Sonora Desert Museum
Bill Holmes* Tucson Metro Chamber
Andrew Schorr, Partner Lewis & RocaChris Smith, Partner* Tucson Golf Vacations Howard Volin, President Graphic Impact
From left – Felipe Garcia, Executive VP; Brent DeRaad, President & CEO; Jessica Stephens, Director of Public Relations; Allison Cooper, VP of Marketing; Roni Thomas, CFO; Vince Trinidad, Director of Tucson Sports; Vicki Doyle, VP of Community Relations & Visitor Services, and Tim Vimmerstedt, Director of Marketing
From left – Jackie Ludwig, Director of Tourism; Graeme Hughes, Director of Convention Sales; Shelli Hall, Director Tucson Film Office, and Jane Roxbury, Director of Convention Services
Lea Marquez Peterson President & CEO** Tucson Hispanic Chamber of Commerce Mike Varney President & CEO ** Tucson Metro Chamber
David Welsh, Executive VP Tucson Regional Economic Pima County Opportunities Sharon Bronson * Term ends June 30, 2013 Pima County Board ** Term begins July 1, 2013 of Supervisors Tom Moulton, Director* Pima County Economic Development & Tourism
Photos: BalfourWalker.com
Government
For membership opportunities, contact Vicki Doyle at vdoyle@VisitTucson.org or (520) 770-2133
Summer 2013 > > > BizTucson 87
“
When it comes to aquatics, this facility will have an olympic-size economic impact on the entire region.
”
– Vince Trinidad Director Tucson Sports, Visit Tucson
Aquatic Center Attracts Athletic Tourism By Steve Rivera Admittedly, Oro Valley Mayor Satish I. Hiremath is a hard man to impress. Tough in fact. But when the Town of Oro Valley was able to re-do the old Dennis Weaver pool and turn it into what is now the Oro Valley Aquatic Center, the result was a beckoning oasis in the desert. “I was in awe, actually,” Hiremath said. “There have actually been just a few things in my life that I have been in awe about – but this is pretty impressive.” It’s Southern Arizona’s jewel in the desert – and shows what a $5 million renovation can do to a place. And for the future. “Our return on investment from a marketing standpoint alone is going to be astronomical,” said Hiremath. “What they’ve done with the facility is 88 BizTucson
<<<
Summer 2013
pretty phenomenal.” Hiremath, both mayor and a practicing dentist, said for the past 2½ years the town of Oro Valley has made a concerted effort to “really showcase Oro Valley.” And the pool is a perfect example. Realizing the pool is one of a handful in Southern Arizona that is rated as an Olympic-caliber pool, Hiremath decided to take advantage of its uniqueness. “I was contemplating how do we create an asset out of it?” he said. “This is what we came up with.” Vince Trindidad is director of Tucson Sports, a division of Visit Tucson. He said, “When it comes to aquatics, this facility will have an olympic-size economic impact on the entire region.” Maybe even the whole Southwest. “This is the best water you’re going
to get that’s not collegiately owned. At this point, no facility can even match it,” he said. The pool, in addition to being a competition-level facility, includes a water slide, a splash pad for children and other family-friendly amenities including: • Heated 25-yard recreation pool • Heated competition 50-meter pool • Classroom for birthday parties, community meetings and CPR classes • New family changing rooms • Shaded areas • Concession stand • Bleachers for seating during events • Year-round availability
www.BizTucson.com
PHOTO: BRENT G. MATHIS
BizTOURISM
“Oro Valley took a very bold move in building this caliber of facility, but they want aquatic events and sports tourism to be pillars of their community and economic development plan,” Trinidad said. The Aquatic Center is the perfect start. Pardon the pun, it’s already a splash – with a few hundred people coming in mid-March to celebrate the grand opening. “Our aquatic center is a point of civic pride because it is one of the premier aquatic facilities in the southwestern United States,” said Lou Waters, Oro Valley vice mayor. Hiremath said a state swimming event involving eight year olds was held in the spring and generated $95,000 and another state event brought in $237,000. “What it all means is economic impact for Oro Valley,” Waters said. “It’s about hotel stays and visitor spending on dining, shopping, entertainment and more. We have no property tax – so sports tourism is a way to generate revenue for community services.”
www.BizTucson.com
Waters said the return on investment on the new facility is projected to be about $2.2 million per year. There are a number of events slated for the pool, in addition to the use of the facility by the area residents. The U.S. National Synchronized Swimming Championships are slated to be held at the Oro Valley Aquatic Center April 8-12, 2014 – attracting 180 competitors, along with friends, family, coaches and officials. “We’ll have a number of events ongoing – and have a place for our local youth to cool off in the summers,” Waters said. Oro Valley officials are currently working with Visit Tucson, joining forces to attract an array of groups from all over the nation to stay and play in northwest Tucson. Teams that practice in the winter months in cold climates
Logo designed by Visit Tucson
will be targeted. (The Visit Tucson graphic design team also created the center’s logo.) Regarding the aquatic center, Hiremath said officials also are looking into potentially bringing in Pac-12 Conference competitors to train before swim meets at the University of Arizona. “I’ve coined a new phrase and it’s basically ‘athletic tourism’ instead of sports tourism,” Hiremath said. “Sports tourism has the connotation that you have to be an athlete to compete in a sports event – but athletic tourism is something closer to home. In my opinion, everyone considers themselves some kind of an athlete – whether you are a weekend warrior or a hiker or a biker. You don’t have to be at that elite level to compete.” Oro Valley is hoping to attract more of those types of athletes to train and compete. “I’m thrilled with the progress we’re making on the athletic tourism front. We’ll continue to work hard and partner with Visit Tucson to maximize those impacts,” Hiremath said. Biz
Summer 2013 > > > BizTucson 89
To Metro Tucson Business Leaders: As our fiscal year concludes June 30, I want to thank the City of Tucson, Pima County, Town of Oro Valley, Pascua Yaqui Tribe, Tohono O’odham Nation and our 500 partner businesses for their continued investment in Visit Tucson. Tourism has a $2.4 billion annual economic impact – making this one of metro Tucson’s top industries. As you’ve read in this BizTucson special section, that impact includes nearly 22,000 tourism-related jobs throughout Southern Arizona. That’s impressive. Yet we all know that tourism’s economic impact in this region could and should grow. During the recession, our budget dropped from $10 million in fiscal year 2007-08 to $6.4 million this past year. We are very enthused that the Visit Tucson budget will rise to $7 million in fiscal year 2013-14 – thanks to increased bedtax revenue investments from the City of Tucson, Pima County and Town of Oro Valley. These investments, and those from our other partners, will help this destination compete for leisure travelers and meetings business that is currently going to other cities. Tucson’s Strongpoint Research conducted a visitor inquiry study for us last fall that showed 70 percent of our visitors will return multiple times over the next five years. This tells us that if we can get travelers to visit Tucson for the first time, chances are good they will return. Yet to get them to Tucson initially, we have to target the right customers at the right times with the right messages. Based on additional extensive research we conducted during the past year, we know travelers from New York, San Francisco, Los Angeles and Chicago spent the most money last year in Tucson. We know the top zip codes in those markets and others that are most likely to deliver customers to Tucson in the future. We learned when these travelers typically book Tucson vacations, how they perceive our region and what local activities, attributes and events are most likely to bring them back. It’s all part of the Tucson and Southern Arizona destination branding initiative you’ve read about in this special report. By understanding our customers we’re in a much better position to develop a brand – or positioning – for this destination that sets us apart from other cities and regions. We believe that MMGY’s brand concepts of freedom and “Free Yourself” offer a multitude of opportunities to convey Tucson’s most compelling travel attributes. I feel our new positioning statement says it all: “Tucson inspires a sense of freedom among all who visit. Freedom of thought and expression. Freedom to discover and explore. And the freedom to be yourself.” To that end, I feel a sense of freedom to thank the Visit Tucson board of directors and staff for their support, guidance and talents that brought this rebranding to life – and to all the stakeholders who contributed their valuable insights. We are also immensely grateful to Steve Rosenberg and the BizTucson editorial team for demonstrating the value of tourism through this special report – and providing an outlet for Visit Tucson partner businesses to promote their uniquely Tucson product offerings to the local business community.
Sincerely, Brent DeRaad President & CEO Visit Tucson
100 South Church Avenue Tucson, Arizona 85701 520.625.1817 800.638.8350 f. 520.884.7804 visitTucson.org
Visit Tucson’s
ANATOMY of a NEW logo According to Stewart Colovin, Executive Vice President of Brand Strategy at MMGY Global, logos are not designed to tell the entire brand story. “Logos make a very powerful statement,” he explains. “But they shouldn’t attempt to say everything at once. Instead, a logo should help explain a destination’s brand promise.” Since early 2013, travel marketing agency MMGY Global has undergone an immersive process with Visit Tucson and the destination to develop a new brand identity that conveys the true fabric of the community. The process, which included many visits to Tucson and in-depth research, resulted in a logo that makes a statement about how Tucson inspires a sense of freedom for all who visit. Freedom of thought and expression. Freedom to discover and explore. And the freedom to be yourself. “Those who are attracted to a destination like Tucson share a common thread: They’re looking for a place where they feel comfortable in their own skin,” says Chris Davidson, Executive Vice President of Global Strategy for MMGY. “Tucson isn’t chic, polished or plastic. Tucson is a bit off the beaten path and attracts the free-spirited and genuine.”
History of the MTCVB Logo
CURRENT
2000
1991
1990
A History of Being Offbeat and Energizing By its nature, Visit Tucson is an organization that serves as the official “welcoming committee” for visitors to the destination. The new Visit Tucson logo generates a liberating, refreshing sense of what Tucson really is – a community of open minds and free spirits that invite others to discover, explore and be themselves.
1988
Embracing Freedom of Expression The essence of the new Tucson brand is Free Yourself. Tucson inspires the freedom to discover and explore, the freedom to be yourself, and the freedom of thought and expression.
Importance of the Saguaro The saguaro cactus is important to the Tucson destination. “It has become an American icon,” said Tim Vimmerstedt, Visit Tucson’s director of marketing, “and the Tucson destination has embraced and protected the saguaro.” Tucson’s surrounding natural environment is an important, distinctive element of the destination’s experience. So much so that the saguaro has been part of the MTCVB’s logo since 1991.
1986
TO SEE THE NEW LOGO SCAN THE QR CODE WITH YOUR SMARTPHONE AND FREE YOURSELF
Smart Travelers
Hold Phone the
Unique
n.c lyTucso
om
By Monica Surfaro Spigelman
Hyper-connectivity is transforming Tucson tourism. Using the ubiquitous smartphone, the curious now can travel great distances in seconds via cyberspace. And they’re finding Tucson on the global tourism map. “The impact of this digital revolution is astounding,” said Allison Cooper, VP of marketing for Tucson’s tourism bureau now known as Visit Tucson. “One in every three digital minutes is now spent on smartphones and tablets. It’s vital that we utilize these platforms to reach consumers at every stage of travel – when they’re dreaming, researching, booking – and when they’re here in Tucson.” To create effective cyber-marketing tools that connect with these tech-savvy travelers, the bureau collaborates with entrepreneurs, nonprofits, city agencies and other partner businesses throughout the region. Together, they’re kick starting this destination’s visibility with effective digital communication strategies and advertising. “With more than 50 percent of Americans now owning smartphones, execut92 BizTucson
<<<
Summer 2013
ing a strong mobile marketing strategy is critical for growing this destination’s market share of tourism dollars,” Cooper said. Pooling Ideas & Resources Visit Tucson’s newest collaborative partner is the Santa Cruz Valley Heritage Alliance, a Tucson-based nonprofit that connects people to the region’s cultural, historic and natural treasures through programs focusing on heritage tourism and heritage-based economic development. Another bureau partner is the Southern Arizona Attractions Alliance. Together, they’ve published the Tucson Attractions Passport for 10 years – a booklet offering buy-one, get-one free admissions and other savings to more than 50 regional attractions. In October, the two entities launched a digital application, available on iPhones and Androids. Madden Media, a national firm based in downtown Tucson, provides the hightech expertise for Visit Tucson’s mobile applications. Led by Carl Cox, Madden’s senior director of online produc-
tions, the firm has a track record of producing results for the local tourism bureau as well as other partners and destinations across the country, Cooper said. UniquelyTucson.com The Uniquely Tucson Destination Downtown project brought together the Santa Cruz Valley Heritage Alliance, Visit Tucson and supporting sponsors, including Downtown Tucson Partnership, the City of Tucson Historic Preservation Office, Tucson-Pima County Historical Commission and Parkwise. They merged two publications – the Heritage Alliance’s map and Destination Downtown, a publication underwritten for 10 years by the tourism bureau – to create a more comprehensive print supplement as well as develop the UniquelyTucson.com website. This innovative responsive-design site adjusts to whatever device the consumer is using – be it desktop, tablet or smartphone. It features an interactive map and search capability to explore 176 historic buildings and nearly 200 locallyowned businesses and heritage destinawww.BizTucson.com
BizTOURISM
Since the November 2012 launch of the redesigned VisitTucson.org, developed by simpleview, average time spent at the site tripled to 8 minutes per user session.
tions along the modern streetcar route. The platform employs geo-location, click-to-call and color codes to assist users. Rich in content, the website allows online visitors to learn more about historic buildings or heritage destinations by touching a link which leads to descriptive content. In the case of historic buildings, another link also leads to dated and numbered historical photos from Arizona Historical Society archives. “UniquelyTucson.com makes people more aware of the historic environment they experience in their everyday life,” said Vanessa Bechtol, executive director of the Santa Cruz alliance. “This website is a unique representation of our region’s living traditions.” Jonathan Mabry, historic preservation officer of the Tucson Historic Preservation Office, said, “UniquelyTucson.com is a model for how to use technology to increase public awareness of our historic streetscapes.” According to Cooper, research indicates that approximately 71 percent of international travelers to the United States are interested in cultural heritage. www.BizTucson.com
VisitTucson.org
These tourists stay longer, book earlier and spend, on average, $994 per trip.
“
With more than 50 percent of Americans now owning smartphones, executing a strong mobile marketing strategy is critical for growing this destination’s market share of tourism dollars. –
”
Allison Cooper, VP of Marketing Visit Tucson
Potential National Heritage Designation The 10-year-old alliance is a regional nonprofit that promotes heritage destinations and businesses tied to the greater Santa Cruz River watershed. The alliance is the local coordinating entity that supports the Santa Cruz Valley National Heritage Area Act – legislation to designate the watershed area as a National Heritage Area, which would help boost tourism travel to Tucson and Southern Arizona. National Heritage Areas are designated by Congress and account for $12.9 billion in economic activity, 148,000 jobs and $12 billion in tax revenue each year, Bechtol said. “There already are 49 National Heritage Areas around the country. This is a great opportunity for Tucson to attract tourist dollars as well as celebrate our community’s shared heritage.” Two-for-One E-Book The 10th anniversary of the Tucson Attractions Passport – known as the Book of Fun – coincided with increased continued on page 94 >>> Summer 2013 > > > BizTucson 93
Photo: BalfourWalker.com
BizTOURISM
“
It’s vital that we reach consumers at every stage of travel – when they’re dreaming, researching, booking – and when they’re here in Tucson.
”
EXPLOR
The Bea E uty the Desert of
SAVOR
Authen Mexican tic Cuisine
Allison Cooper VP of Marketing Visit Tucson
DISCOV
Tucson’s ER Vibr Arts Scen ant e
PLAY
World-c Resorts lass & Spas
Tucson
Featured in U.S. Airways Special Section
EXPERIEN
CE THE RE
AL SOUTH
WEST
TucsonArts-RE
PRINT.indd
1
1/16/13
More than six million travelers saw the December, 2012 U.S. Airways inflight magazine – and the 48-page editorial section featuring all things Tucson. Articles and photographs showcased 33 local tourism attractions and businesses. Allison Cooper, VP of Tucson’s tourism bureau, brokered this collaboration with the magazine and worked with local partners to produce this professionally written editorial section. The significant group discount allowed local partners to reach a new market of travelers they could not have afforded to advertise to on their own, Cooper said. In addition to the magazines distributed on U.S. Airways flights, Visit Tucson published 1,500 reprints of the special section for on-going distribution to market this unique destination. “This section celebrates Tucson’s sense of place, emphasizing our rich cultural heritage and the distinctly diverse offerings that make this region so awe-inspiring,” Cooper said.
2:55 PM
Allison Cooper, VP of Marketing Visit Tucson continued from page 94 growth and the rise of mobile technology for travelers. Visit Tucson and the Southern Arizona Attractions Alliance decided this was the perfect time to make the guide available on a digital platform. Tom Moulton, co-founder of the SAAA, said the app is “a logical fit for travel activities. We created the app because today’s tourists have a high level of tech comfort.” The passport app can be downloaded for free to scan points of interest. Then PayPal integration allows users to purchase the app and access special offers once at a participating venue. Reini Marsh, Old Tucson sales manager and current SAAA president, said, “Each offer includes details about the attraction, including contact information, hours and directions. You also can sort offers by your current location using the ‘near me’ option. Since the launch, well over 1,000 consumers have downloaded the app – and 12 percent have purchased. –
Mobile Marketing Strategy For Visit Tucson, the digital design of UniquelyTucson. com and the feature-rich Passport app are natural progressions in an overall mobile marketing strategy. “Our collaborators help us brand our region’s incomparable nature, arts and culture,” Cooper said. “We strive to connect travelers with our partner businesses.” One example is the app for International Gem, Mineral, and Fossil Showcase attendees. “Tucson’s tech collaborations are establishing a strong digital culture and identification for the region,” she said. But technology won’t work without an effective marketing strategy in place, Cooper said. “Once you build the platforms, you have to advertise these sites to drive greater visibility and direct online consumers to the rich content on these devices.” To underscore that point, Madden’s Cox added, “Digital components are fantastic tools to tell our stories well. Ultimately, it’s about the authentic experience.”
Biz 94 BizTucson
<<<
Summer 2013
Summer 2013 > > > BizTucson 95
BizTOURISM
Fly Tucson By Sheryl Kornman
right regional airline with the right size aircraft.” J. Felipe Garcia, executive VP of the Visit Tucson tourism bureau is working with TAA on this effort. Air service to Mexico from Tucson ended in 2008 when AeroMexico discontinued flights between Tucson and Hermosillo. The pullout took place soon after TIA’s new international terminal was completed. It’s still in use by cargo carriers and private business travelers. “We know leisure and business travelers are going south – to Making the Case with Airlines Sonora, to Rocky Point, Guaymas, San Carlos and Hermosil In 2007, TIA welcomed 4.4 million commercial passengers. lo. We know the market is there,” Garcia said. The largest That number fell to 3.6 million in 2012 as air carriers failed, business in Sonora is headquartered in Tucson, yet there still merged, reduced operations and shifted to profitability models is no air service from Tucson to Sonora. He said roundtrip from traditional market-share models. airfare from Tucson to Sonora could be $350 – half what it is Richard J. Gruentzel, TAA’s CFO and VP of administrafrom Phoenix. tion and finance, said the authority recognized the funda “TAA’s been great in not giving up,” Garcia said. “It’s not mental changes in the airline industry that have hit small- and easy to convince an airline to make an investment in Tucson. medium-sized hubs like Tucson hard – including nationwide They want to be profitable almost from day one. They want flight reductions because of high fuel prices, airline mergers, to at least start breaking even in the first month. TAA is taking restricting seating to raise airfares and an emphasis on large this very seriously. This project is not on the back burner. hub airports. “We’ve met with airlines several times. They’ve been here And competition from Phoenix in town. It’s an educational process. remains tough. “We are the only We’re selling an investment. We midsize airport in the United States know they’re not a charity. We’ve Airlines Serving Tucson that is less than two hours from a made a lot more progress now than major airport offering at least two we have in the last three years,” he Airline Nonstop Destinations major low-fare carriers,” said Mary said. “We want Sonora to be sucAlaska Airlines Seattle/Tacoma Davis, senior director of business cessful, too.” American Chicago O’Hare development and marketing for Still, it’s a work in progress. TAA. “It takes a village to attract an air Dallas/Ft. Worth TAA is working to attract service line,” Davis said. TAA’s board of di Los Angeles rectors includes some of the biggest to several domestic destinations imDelta Atlanta influencers in the community and portant to the community, as well as Minneapolis (seasonal) they are turning to their stakeholder destinations in Sonora, Mexico and Salt Lake City Canada. groups to help TAA meet its goals. Southwest Chicago Midway Gruentzel said TAA has been TAA is also planning to enhance Denver “working closely with our pubthe passenger experience with a ter Las Vegas lic- and private-sector partners in minal renovation project that could Los Angeles Southern Arizona and Sonora and get under way in 2014. The work San Diego has demonstrated that business and will improve passenger flow with United Denver leisure demand for nonstop service kiosk check-in, additional ATMs, Houston to several destinations in Sonora will more space for concessions, recon Los Angeles be profitable and sustainable for the figured airline ticketing counters, It’s no longer business as usual for the Tucson Airport Authority – the self-funded, independent, nonprofit that operates Tucson International Airport. After a reorganization that began two years ago, TAA began to transform itself to more aggressively develop both air service and new revenue streams in response to the economic downturn that forced airlines and airports to change their business models.
96 BizTucson
<<<
Summer 2013
US Airways
San Francisco Phoenix
www.BizTucson.com
and additional space for passengers after they pass through TSA security. Customer service remains a high priority as well. “We know that time is valuable and travel is expensive. We hire good people so we can provide the highest level of customer service,” Davis said. “There are a lot of options for customers today. We’d like them to think of us first.”
dustrial uses, Gruentzel said. He is optimistic about developing the authority’s land. “A strong existing aerospace and defense industry presence and a strategic location for multimodal logistics opportunities create tremendous potential for development of land areas not currently needed for airfield and passenger terminal facilities,” Gruentzel said. With all these strategies in play, TAA’s marketing effort is Looking to a Diversified Future broad. This summer, an online community survey will be con Like many other airport operators around the world dealducted by an outside vendor to find out what the community ing with airline business model shifts, TAA is working to inwants from TAA. A marketing campaign will emphasize the crease non-aeronautical revenue. In addition to funds from ease of traveling from TIA and the enhanced customer serairline landing fees, TAA receives rents from tenants, vehicle vice experience. parking fees and a percentage “We’re examining our air service of airport terminal concessions. and also how to position ourselves TAA’s largest tenant remains as a unique destination,” Davis Raytheon Missile Systems. Other said. tenants include Bombardier, As Even with the current challengcent Aviation Services and pries, TAA remains a key economic vate aircraft operations. driver in Tucson, with a total an One major endeavor is to lenual economic impact of $3.2 verage 5,000 acres of “develbillion, according to a 2012 study opable” property around the conducted by the Eller College of airport. A new master-plan upManagement at the University of Arizona. date emphasizes “comprehensive land-use planning that will guide TIA operates its own police and fire departments. It supports efforts to aggressively market and 35,000 jobs throughout the region develop TIA’s abundant land re– including the 13,000 workers sources” suited for aviation and – J. Felipe Garcia, Executive VP, Visit Tucson employed at the airport itself. non-aviation commercial and in-
“
We know leisure and business travelers are going south – to Sonora, to Rocky Point, Guaymas, San Carlos and Hermosillo. We know the market is there.
”
www.BizTucson.com
Biz
Summer 2013 > > > BizTucson 97
98 BizTucson
<<<
Summer 2013
www.BizTucson.com
Brent DeRaad President & CEO Visit Tucson
Photo: BalfourWalker.com
BizTOURISM
Tucson’s Tremendous Tourism Opportunity By Romi Carrell Wittman Even people in the know sometimes get tripped up by the alphabet soup of the name. After all, MTCVB doesn’t exactly roll off the tongue. That’s one of the many reasons the Metropolitan Tucson Convention & Visitors Bureau is getting to undergoing a makeover. In June it unveils a comprehensive branding campaign and the logo for its new name - Visit Tucson. Brent DeRaad, president and CEO of the organization, is excited about the change and the new marketing campaign ahead. He said it will give travelers – both business and leisure – a better sense of the community and the www.BizTucson.com
assets that make Tucson unique. “This is a great opportunity for Tucson to create its mark out there in marketplace so more potential travelers know what we have to offer.” These changes are based on a year’s worth of comprehensive market research gleaned from local, regional and national traveler surveys and interviews. This customized data gives the bureau an unprecedented understanding of what draws travelers to Tucson – as well as what might keep them away. Visit Tucson is using this information to rebrand itself and to reach potential travelers in highly targeted ways. “Among those who have been here
before, we discovered they are very likely to return,” DeRaad said. They come here because Tucson provides them with a rejuvenating retreat from their daily lives, a “get-away-from-itall” quality they don’t find other places. Tucson also connects them to the outdoors in a way other destinations cannot match. With 350+ days of sunshine a year, every day is a good day for golf, hiking, cycling or just kicking back. “What tends to resonate is that Tucson offers a very casual experience and the freedom to explore,” he said. “They can get out and understand the culture of the community. They like having an authentic experience.” continued on page 100 >>> Summer 2013 > > > BizTucson 99
BizTOURISM continued from page 99 The research revealed some surprising facts, too – namely that New York is the number one “feeder” city in terms of travel dollars to Tucson, followed by Los Angeles, San Francisco, Chicago, Phoenix, Denver, Dallas and San Diego. “I was really surprised to see how strong New York was, considering there are no nonstop flights coming in from New York,” DeRaad said. “They far and away outspent travelers from other destinations – about 30 percent above what we saw from other markets.” The research also revealed that the still-recovering economy, as well as lingering stereotypes about Arizona (specifically the controversy surround SB 1070), are holding some travelers back – though that is changing. “Some people who haven’t visited think that there isn’t much to see or do,” DeRaad said, which demonstrates why a new, highly targeted and focused marketing campaign is needed to reach more travelers. While the MTCVB has seen success
100 BizTucson
<<<
Summer 2013
“
New Yorkers far and away outspent travelers from other destinations – about 30 percent above what we saw from other markets. – Brent DeRaad President & CEO Visit Tucson
”
over the past three years with its Real Southwest campaign, DeRaad said it’s time for a change. The bureau teamed up with MMGY Global, a travel marketing firm based in Kansas City, to develop an entirely new branding strategy and campaign, which will be unveiled at the annual meeting on June 13. DeRaad is also pushing for a bigger budget. In July 2012, the Pima County audit of the agency stated that funding “is insufficient for MTCVB to remain competitive with other destinations.”
The bureau was hit hard during the recession and saw its budget cut from $10 million annually five years ago to its current $6.5 million. The revenue comes, in part, from a bed tax levied on hotel rooms. As the economy continues to improve and more people visit Tucson, bed tax revenues will grow. In fact, the City of Tucson voted in late May to increase Visit Tucson funding to 33 percent, up from 28 percent this year. That’s an increase of roughly $500,000. The Town of Oro Valley also has pledged to increase its investment in Visit Tucson from $75,000 to $120,000 next year. DeRaad hopes to get back to the $10 million a year budget within the next five years. In the meantime, he’s eager to share this rebranding campaign not only with tourism and economic development stakeholders, but with targeted leisure travelers, tour operators, travel agents and meeting planners. “We’ve got to be sure that Tucson occupies a very clear, distinctive place in the minds of customers,” he said. “If we can get them here that first time, they’ll be back.”
Biz
www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 101
102 BizTucson
<<<
Summer 2013
www.BizTucson.com
Photo: BalfourWalker.com
BizTOURISM
Michael Luria Executive Director Children’s Museum Tucson
Where We Want to Be By Romi Carrell Wittman Longtime Tucsonan Michael Luria knows a thing or two about destination Tucson. He’s executive director of Children’s Museum Tucson and is starting a second year as chair of the Visit Tucson board of directors. As a former owner of the popular Café Terra Cotta, he also knows about Tucson’s hospitality industry. “We have a unique product,” Luria said of Tucson. “There are other Southwest locations, but Tucson really is unique. We need to embrace, cherish and promote that.” Luria has had an eventful year www.BizTucson.com
leading Visit Tucson as it implemented recommendations from a recent performance audit. Under his leadership, the organization focused on developing a new brand for Tucson and Southern Arizona, while working successfully with the public sector to increase its investment of bed-tax dollars in Visit Tucson. Some months ago, Luria led a board retreat exploring the organization’s approach to marketing the region as a travel destination. The group looked ahead to 2016 and asked itself “where do we want to be?”
Many things came out of that retreat, including the need to secure and invest additional revenue in Visit Tucson’s marketing, sales and promotional programs to attract more leisure travelers and meetings. Tucson has formidable competition for these customers and the dollars they spend on lodging, dining, attractions, shopping and more. “With the research we’ve conducted this past year, we will be able to target customers with tailored messages,” Luria said. “We need to invest our continued on page 104 >>> Summer 2013 > > > BizTucson 103
BizTOURISM
“
There are other Southwest locations, but Tucson really is unique. We need to embrace, cherish and promote that. –
Michael Luria, Chair, Visit Tucson
continued from page 103 limited dollars wisely to maximize our return on investment.” This logic underpins the new rebranding strategy and campaign, launched June 13. The bureau partnered with MMGY Global, a bestin-class tourism marketing firm. “We’re tapping the best and the smartest,” Luria said. The rebranding strategy includes not only a new marketing campaign, but also the new name for the tourism bureau – Visit Tucson. Luria is excited about the changes ahead. “We’re fortunate in that we have a very engaged board. It’s evidenced by number of people in the room and the energy in the room,” he said. “We’re
104 BizTucson
<<<
Summer 2013
driving the conversation about where we’re at – and where we’re going.” Luria added that, with Brent DeRaad as president and CEO, Visit Tucson is in a really good place. “He’s a breath of fresh air. He is a benefit to our community because he understands Arizona and the Southwest.” There is still work to be done, Luria said – starting with the people living here. “I’m not sure everyone really understands the value of tourism. Tourism in this region has a $2.4 billion impact on our economy.” When business or leisure travelers dine at a local restaurant, stay at a hotel, rent a car, go horseback riding or shopping, they’re paying sales tax – dol-
”
lars that go to the city or county general funds. “Those funds pay for things like police, fire, parks and recreation,” he said. The research revealed that Tucson has many strengths. One that Luria is particularly proud of is its reputation as laid back, friendly and accommodating. This is a place where people can just kick back and unwind – or get energized and explore the outdoors, go to events and attractions, taste new foods and experience this distinctive culture and environment. “Tucson is very special,” he said, “This is truly a one-of-a-kind destination with great appeal for today’s travelers.”
Biz
www.BizTucson.com
Green Valley - Sahuarita
TWO2GREAT COMMUNITIES
LIFESTYLES
With more than 300 days of sunshine and an average of 85 degrees, both communities of Green Valley & Sahuarita provide uncompromising lifestyles. A combined population of 50,000 makes this a premier area for Southern Arizona living. Come to the gateway of Southern Arizona and enjoy hiking, biking, bird watching, historical equestrian tails and so much more. This is your invitation to visit an area that will exceed your expectations. www.greenvalleysahuarita.com 275 W. Continental Rd., Suite 123 Green Valley, AZ 85622 (520) 625-7575 (800) 858-5872 jim@gvchamberaz.tuccoxmail.com Town of Sahuarita 375 W. Sahuarita Center Way Sahuarita, AZ 85629 www.ci.sahuarita.az.us
www.BizTucson.com
Summer 2013 > > > BizTucson 105
BizFOOD
10 Reasons Foodies Love Tucson By Edie Jarolim When I first moved to Tucson from Manhattan in the early 1990s, I would have scoffed at anyone who predicted this would become a great food town. Sure, there were some terrific restaurants, from taquerias to fine dining rooms, along with a few interesting ethnic markets, but the scene was nothing to write home about – literally. I would have been hard pressed to pitch Tucson food stories to any national publication. 1. Dining diversity You may have to do a little digging, but you’ll find every type of cuisine you could want here, including such unexpected ones as Jamaican, Hawaiian and Serbian. And you won’t have any difficulty finding excellent Middle Eastern and Asian restaurants, particularly Indian and Japanese. Italian fine dining rooms, a Tucson staple, have been joined by more casual trattorias and pizzerias. We even have the first pizzeria in Arizona certified by a Neapolitan food guild – Vero Amore. American classics, from steakhouses to burger joints, thrive side by side with New American dining rooms highlighting farm-to-market fare. And how many cities can claim to have access to Native American food – fry bread vendors at Mission San Xavier del Bac and more traditional Tohono O’odham fare at the Desert Rain Café in Sells? A Tucson café with the unlikely name of Mother Hubbard’s – it’s a long story – reinterprets Native American recipes in several breakfast dishes.
Two decades later, there’s plenty worth pitching. What’s changed? Both Tucson and, after two decades of traveling around the U.S. and abroad, my sense of what makes a dining destination desirable. As you’ll see from the following list, that includes some intangibles as well as characteristics that are easier to quantify.
2. Mexican food You’d be hard pressed to find a similar concentration of authentic Mexican restaurants – as opposed to Tex-Mex, say, or Baja style – anywhere outside of Mexico. They’re concentrated in a 23mile radius from South Tucson through downtown and lower midtown. Tucson has been known for restaurants highlighting the food from the neighboring state of Sonora since 1922, when El Charro Café started serving carne seca and other traditional dishes. And since El Guero Canelo and its nearby rival BK Hot Dogs duked it out on “Man v. Food,” Tucson may be best known for its Sonoran hot dogs. But other parts of Mexico such as Jalisco (Guadalajara Grill), Mexico City (La Parilla Suiza) and Oaxaca (Theresa’s Mosaic Café) are well represented too. And Café Poca Cosa is known nationally for taking diners on a culinary spin around the interior of Mexico. 3. Many markets Whole Foods, Sprouts, Trader Joes… We’ve got more branches of all the national gourmet grocery chains than
most cities our size, along with homegrown markets for every ethnicity from Italian to Vietnamese. Weekly open-air markets abound, too. The Santa Cruz River Farmer’s Market, run by the Community Food Bank in the Mercado San Agustin complex, was recognized by Eating Well magazine as one of the top 10 in the U.S. And for variety and consistency – not to mention its social scene – it’s hard to beat the Sunday farmer’s market at St. Philips Plaza. 4. Tea and coffee clout Tucson has many popular independent coffee houses that roast their own beans – for example, Raging Sage – and a tradition of coffee brewing. Arbuckle’s, the first roaster in Arizona to qualify for USDA organic certification and the first to be licensed a fair trade roaster, does cuppings to create special blends for restaurants all over town. But tea is the city’s surprise. Along with the Maya Tea Company – an international company created by Indianborn Manish Shah, who now manages continued on page 108 >>>
Page 107
Page 108
Page 110
1. Miraval Life in Balance
6. El Merendero
11. Distinctive Desserts
2. Guadalajara Grill
7. Sonoran Hot Dog
3. Downtown Kitchen + Cocktails
8. Tucson Culinary Festival, Casino del Sol
12. People’s Choice, World Margarita Championship
4. Southwestern Salads
9. Café Poca Cosa
5. Seven Cups Fine Chinese Tea
10. JW Marriott Tucson Starr Pass Resort & Spa
106 BizTucson
<<<
Summer 2013
13. Flying V, Loews Ventana Canyon
1
2
3
4
5
Summer 2013 > > > BizTucson 107
BizFOOD
6
7
8
9
10
continued from page 106 the two farmer’s markets from which he used to sell his chai blends – Tucson has the unique Seven Cups Fine Chinese Tea, the only American tea company with its own Chinese trading license. You can schedule an authentic Chinese tea service at the intimate tearoom. The Tohono Chul Garden Bistro serves afternoon high tea in its unique desert setting, and the Chantilly Tea Room dedicates an entire building to traditional English teas and tea supplies. 5. Potent potables The beer and wine scenes are bustling. Barrio, Borderlands, Dragoon, Gentle Ben’s and Thunder Canyon brewing companies are all members of the Arizona Craft Brewers Guild, and Nimbus beer is distributed nationally. Restaurants with award-winning wine lists and frequent wine-pairing events are too numerous to mention, and two serious wine-producing regions, Sonoita-Patagonia and Willcox, are an easy drive from town. The interest in cocktail culture that started with Kingfisher in the 1990s has burgeoned. Casino del Sol and Downtown Kitchen + Cocktails even offer mixology classes. And agave is the jewel in the city’s cocktail crown. Tucson is home to the annual World Margarita Championship, part of the Tucson Culinary Festival. In addition to tequila and mescal, the Agave Fest, held around Cinco de Mayo, celebrates such little-known spirits as sotol, created in Chihuahua, and bacanora, from Sonora. In 2011, Cielo Rojo became the first premium bacanora to be imported into the U.S. and it’s only available in Tucson. Plaza Liquors and the Rum Runner have great selections of all these agave spirits – along with wine and beer. 6. Bang for the buck With the exception of the high-end steakhouses, only a few full-service restaurants charge more than $30 for entrees. Main courses tend to fall into the $15 to $25 range. That’s what you’d pay for a cocktail or glass of wine at many comparable dining spots in cities like New York and Los Angeles. Then there are the happy hours and, most recently, reverse happy hours that start after 9 p.m. (Only in a town where most people go to sleep at 10 – my hand raised here – would these exist.) continued on page 110 >>>
108 BizTucson
<<<
Summer 2013
www.BizTucson.com
Summer 2013 > > > BizTucson 109
BizFOOD
continued from page 108 Add summer specials, the reward for staying in the city while it’s sizzling, and you’ve got a wide range of opportunities to dine well without emptying your wallet.
11
12
7. Al fresco dining Dining outdoors is one of life’s great pleasures, and heaters and misters make it possible year round in Tucson. Of course, you can always tell the locals from the visitors: In summer and when the mercury dips below 60, we’re the ones sitting inside. And unlike cities where tables are dragged outdoors on crowded streets at the first hint of sunshine, Tucson provides diners with plenty to look at, from the trains tootling by at Maynards Market & Kitchen to the mountain and/ or city vistas that most restaurants in the foothills and many in the northwest have. Historic resorts like Hacienda del Sol and Westward Look add character to the setting. And did I mention the sunsets? 8. Accessibility and attitude It’s nice not having to wait in line or make reservations weeks in advance at most restaurants. Only a few major events like the gem show crowd tables to the point of impinging on our ease of access – and who would begrudge local restaurateurs the business that keeps them thriving? Yes, restaurant service can be lax and unprofessional at times. This is a college town and it’s not always easy to maintain good serving staff, but the general friendliness and willingness to be helpful usually compensates. And you don’t get the kind of oversharing or snobbery that characterize servers in a lot of cities.
13
110 BizTucson
<<<
Summer 2013
9. Widespread influence Several Tucson pioneers have contributed to – and helped change – the national conversation about food. The title of Dr. Andrew Weil’s latest book, “True Food: Seasonal, Sustainable, Simple, Pure” is a good summation of the integrative approach towards eating that he popularized. World-renowned nature writer and conservation biologist Gary Nabhan co-founded Native Seed/SEARCH to help the Tohono O’odham Nation locate seeds to grow traditional crops. The innovative New Southwestern cuisine of James-Beardaward-winner Janos Wilder, who often
works with Nabhan, took desert ingredients into the gourmet arena. And in 1999, the Tucson Originals and the Washington D.C. Originals cofounded a movement of restaurateurs working to preserve their local culinary scene against an onslaught of fast-food chains without ties to their community. The national group no longer exists, but the Tucson organization continues to help many of the city’s top restaurants, of all styles and prices, survive and thrive with buying and advertising power. 10. Growth Interesting new restaurants are cropping up at a dizzying pace. That’s especially true downtown, where developer Scott Stiteler has been turning historic real estate into happening dining and drinking spots, starting with HUB Restaurant & Ice Creamery. Stiteler’s Rialto Exhibition Center will soon host Saint House, a rumoriented restaurant created by Travis Reese and Nicole Flowers of 47 Scott fame. It’s already home to Proper and Diablo Burger. James Beard-award winner Chris Bianco chose downtown Tucson to be the second location of his nationally renowned Pizzeria Bianco. And talk about reincarnation – an old funeral parlor is now the super hip (and super lively) Reilly Craft Pizza & Drink. But things are happening up north of town too. Just two examples: In fall, the Hilton El Conquistador debuted its Southwest chic dining room, Epazote, while Fox Concepts’ NoRTH got a new menu and a dramatic redesign. Then there are the moveable feasts. The Tucson Food Truck Roundup got its start on Nov. 1, 2011, and now some 20 to 25 creative mobile kitchens turn up everywhere from midtown to Marana. The Ritz-Carlton, Dove Mountain, recently introduced a food truck too. You know a town has come of culinary age when you can find Korean tacos there. Biz Edie Jarolim’s dining and travel stories about Tucson – and many other places – have appeared in More, National Geographic Traveler, Sunset, The Wall Street Journal, US Airways magazine and other national publications. She is the Zagat editor for Tucson and Contributing Cuisine Writer for BizTucson.
www.BizTucson.com
Summer 2013 > > > BizTucson 111
BizTOURISM
112 BizTucson
<<<
Summer 2013
www.BizTucson.com
www.BizTucson.com
Summer 2013
>>>
BizTucson 113
Enter the Best 23 Miles
of Mexican Food
Best23MilesOfMexicanFood.com
BizBRIEF
Bond, Malin Join Chestnut Construction Randy S. Bond
Bob Malin
www.BizTucson.com
Randy S. Bond has joined Chestnut Construction as a partner, where he serves as VP and senior project manager. Tom Chestnut will continue to serve as CEO and Pat Johnson as president. “We are honored to welcome Randy to our team,” Chestnut said. “His 33 years of commercial construction experience and expertise in public and private sector projects will be a great asset to Chestnut Construction.” Bond owned and operated a construction company in Phoenix before settling in Tucson in 1998 with his wife, Ellen, and son, Micah. He was named Arizona Builders’ Alliance Volunteer of the Year in 2012. Chestnut also named Bob Malin director of project development. He is responsible for
marketing, new client development and preconstruction services. Originally from San Francisco, Malin’s experience includes the planning, development and construction of retail, office, industrial, R&D, medical office, hospital and communications facilities, as well as solar power plants. Malin moved to Tucson in 2002 with his wife, Sheila, and has worked with local owners, developers, architects, engineers and subcontractors. Chestnut Construction, a general contractor, is based in Tucson. The diversity of projects for public and private sector clients has earned the company numerous awards recognizing construction excellence over the past 23 years.
Biz
Summer 2013 > > > BizTucson 115
David M. Lovitt, Jr. with kids at the Boys & Girls Clubs of Tucson
Champion for Children David M. Lovitt, Jr.
116 BizTucson
Photo: BalfourWalker.com
By Christy Krueger
<<<
Summer 2013
BizAWARD For 33 years, David M. Lovitt, Jr. has dedicated himself to making life better for boys and girls in Tucson. He has served as a devoted supporter of the Boys & Girls Clubs of Tucson, helping to raise millions of dollars to save the organization from demise and grow it into a safe and supportive place for more than 8,000 children in six clubhouses throughout Tucson. For his tireless efforts, Lovitt is the recipient of the 2013 Boys & Girls Clubs of Tucson Click for Kids Award. “He is exactly the type of individual who makes an organization like the Boys & Girls Clubs rise above other organizations,” said Mark Irvin, past longterm board member and initiator of the Click award. “He has tackled every single thing he has been asked and has done everything better than expected and sooner than expected,” Irvin continued. “David is a leader, and his impact cannot be calculated.” The clubs’ CEO Armando Rios, who has known Lovitt for 20 years, said “he has been a shining example of what it means to think of something bigger than yourself. He is a hero to us all.” In 1968, after returning from Vietnam, Lovitt joined his father’s insurance company, which over the years merged with various partners to become what is now Lovitt & Touché. After David M. “Mac” Lovitt died in 1998, the company decided to retain his memory. “His name and his recognition and respect were so great, they wanted to keep it,” Lovitt said of his father. Early in his career, the younger Lovitt was on his way to creating a name for himself in the community. He launched his own local, independent firm, D.M. Lovitt Insurance Agency, which handles all lines of insurance, including life, health, disability, home, auto and business. In 1980, Jim Click gathered Lovitt and 15 to 20 others for a meeting. Click announced that the national office of Boys Clubs planned to close the Tucson branch for financial reasons. The group committed to saving what would become the Boys & Girls Clubs of Tucson. www.BizTucson.com
“We had a fundraiser. We got the premiere of “Star Wars” and raised $50,000. It was enough to pay the debts,” Lovitt recalled. He has served on the board of directors ever since and has helped the BGCT become one of the most successful organizations in town. Of the original group, Lovitt is the only remaining active board member. He has held every office position and was instrumental in organizing several large fundraisers.
“
No one has done more for our clubs or kids than David has.
”
Jim Click President Jim Click Automotive –
“Mark (Irvin) and I started and cochaired The Holiday Auction, and in about 1999 we raised $1 million,” he recalled. The gala, later renamed The PARTY, had not raised that amount before, and it has not been matched since. What was the secret to their success? “We asked everyone to double their commitment and most of them did. We asked the board to bring in twice the number of auction items and they did,” replied Lovitt.
He teamed with other board members to launch The EVENT fundraiser and to procure $1.6 million for the Jim and Vicki Click Clubhouse. The Click for Kids Award, created in 2009 in honor of enduring supporter Jim Click, recognizes an individual, couple or organization that has made a major impact on club members. Lovitt was honored during the June 1 Steak & Burger Dinner at Casino del Sol Resort. “David Lovitt has generously given his time, effort and enthusiasm for over 30 years. No one has done more for our clubs or kids than David has,” Click said. “Thank you David Lovitt for all the passion and spirit you bring to our community,” said board member Jana Westerbeke of Gadabout Salon Spas. “You have encouraged us all to reach for goals and to say yes to things we might not have seen without your encouragement.” Some of Lovitt’s most impressionable memories of his years with BGCT have been the dramatic and inspiring Youth of the Year presentations by club members. “Each clubhouse elects a boy and girl who go before a panel and tell their story. The winner goes to Phoenix and then regional and national. You can’t believe the things they’ve gone through to persevere and still overcome obstacles – being sexually abused, left alone, mother on drugs. You see these shining stars grow to become successful people – that’s the essence of the program,” Lovitt said. Outside BGCT, Lovitt has followed in his father’s footsteps by volunteering with Tucson Botanical Gardens. He’s also a member of Southern Arizona Leadership Council, Tucson Airport Authority and Tucson Rotary Club. Among Lovitt’s many close friendships formed through BGCT is emeritus board member Laurie Wetterschneider, owner of Laurie and Lisa Designs. “David is the quiet thinker and worker behind the success of our organization,” she said. “He is truly a treasure in my life and for all who know him.”
Biz Summer 2013 > > > BizTucson 117
BizDESIGN
Spectacular Splashables Aqua Design Creates Outrageous Water Features around the Globe
PHOTO: TOM SPITZ
By Christy Krueger Anything with water, anywhere in the world. That’s the saying at Aqua Design International. And they do mean anywhere. The Tucson company is known for award-winning designs – from flagship resort destinations to competition pools and outrageous water features. The company’s reach goes far beyond Tucson. From Douglas, Ariz., to Kuwait, Egypt, Saudi Arabia, Haiti, Mexico, Korea, Vietnam and British Columbia, Aqua Design International is recognized around the world.
118 BizTucson
<<<
Summer 2013
Due in part to the company’s efforts, properties they have done design work for are pulling in major awards. Four of their projects – The RitzCarlton, Dove Mountain in Tucson; Viceroy Anguilla in Anguilla; Amangiri Resort in Canyon Point, Utah and Four Seasons Resort in Manele Bay, Lanai – have been named to the Condé Nast Traveler Magazine’s 2013 Gold List. Tucson’s Casino del Sol Resort and RitzCarlton, Dove Mountain – with its tanning continued on page 120 >>>
www.BizTucson.com
David Acklin (left) President Aqua Design International Ken Paulson VP Aqua Design International Photo taken at the Oro Valley Aquatic Center www.BizTucson.com
Summer 2013 > > > BizTucson 119
BizDESIGN continued from page 118 islands, in-pool lounge chairs and water dining tables – have been selected as 2013 Forbes Travel Guide Star Award winners, earning Four Star ratings. Water features at both were designed by Aqua Design. Recently, the company designed the Oro Valley Aquatic Center, which opened to rave reviews. Aqua Design was established in 1996 by David Acklin and Ken Paulson. The pair focused on detailed design aspects of commercial pool building – something they felt was lacking in their field. Their path to forming Aqua Design was not exactly planned, but evolved naturally as they gained experience in the commercial pool business. Paulson graduated from the University of Arizona in 1985 with a landscape architecture degree from the College of Agriculture and Life Sciences. After attending school in Kansas, Acklin stayed in Wichita and began working for United Industries, a manufacturer of components for large pools. The company had customers around the world, exposing Acklin to contacts that later became invaluable. Next, he worked in Hawaii for a contractor that built resort pools, followed by his final move – to Tucson. Here, he and Paulson met in the commercial pool division of Patio Pools. “We got plans from other pool consultants and they weren’t complete. From our experience, it drove us to start our own company,” Acklin said. “In 1996 we started Aqua Design to be consultants for commercial swimming pools. What we do is so specialized – you don’t come out of school with a degree. We sell intellectual property to create incredible pools.” Added Paulson, “David had experience in sales of equipment and knew vendors associated with that field. I came into it from a design aspect and we combined our talents. Then we became work spouses.” Aqua Design clients are generally architects and landscape architects who design pools and water features for resorts, schools and municipalities. Other local projects include the Omni Tucson continued on page 122 >>> 120 BizTucson
<<<
Summer 2013
Four Seasons Resort Lana’i at Manele Bay Viceroy Anguilla
Viceroy Anguilla
Puerta Privada
Amangiri Canyonlands
U.S. Army Camp Humphreys www.BizTucson.com
Casino del Sol Resort, Spa & Conference Center
“
We sell intellectual property to create incredible pools. – David Acklin, President Aqua Design International
”
JW Marriott Tucson Starr Pass Resort & Spa
Photos courtesy Aqua Design International
The RitzCarlton, Dove Mountain
Summer 2013 > > > BizTucson 121
BizDESIGN
“
We have jobs in Saudi Arabia. There, water is held precious to them…but they also want to show you their water. It’s a statement of wealth and power.
”
– Ken Paulson VP, Aqua Design International
continued from page 120 National Resort, the lazy river at JW Marriott Tucson Starr Pass Resort & Spa and the community aquatic center in Sahuarita. Dave Burns of BWS Architects worked with Aqua Design on two local play pools – one for the City of Tucson and one for Pima County. “They’re very good to work with,” he said, referring to Acklin and Paulson. “I particularly respect their knowledge in pool design. That’s a value they’ve brought to our local projects.” Kevin Barber of Swaim Associates in Tucson recalled similar experiences with Aqua Design’s owners. “It’s been positive, a real team experience. They’re very responsive and always have answers for us. They’re always right on.” While it’s rewarding and convenient to handle jobs close to home, there’s not enough business in Tucson and the Southwest to keep them busy, according to Paulson. As a result, he and Acklin developed and nurtured relationships with architects around the world and often reap the rewards of repeat business from a job well done. Sometimes, they go to the customer. “We do client meetings in Dubai, Korea, the Caribbean, Canada,” said Paulson. continued on page 123 >>> 122 BizTucson
<<<
Summer 2013
www.BizTucson.com
continued from page 122 For the most part, however, the partners and their eight employees run the business from Tucson in a small office hidden away near Foothills Mall. “With the advent of the Internet and having AutoCAD (software program), we realize we can do jobs anywhere on the planet,” Acklin noted. “We have so many projects outside the region, the barrier of not being there is more accepted.” One of the biggest challenges Acklin said they had in the beginning was figuring out metric and language conversions. “When we got into international work, we had to learn to provide metric plans. And we found people who interpreted the plans. There are services that charge on a per-word basis. Now it’s second nature.” “My largest difficulty,” Paulson said, “is working with different architectural systems. Internally, each has its own way within the CAD program. They all like lemonade with different amounts of sugar in it and you must conform.” He also acknowledged the complexity of balancing jobs. “We work 40 hours or 80 hours, depending on the work. We have a flex schedule.” Among their most spectacular endeavors is the MGM Grand in Egypt. “There are 200 bodies of water under construction,” Acklin said. Other projects that stand out include the Palm West Resort on a man-made island off the coast of Dubai, United Arab Emirates, and a residential development in Morocco with more than 20 pools and water features. In these days of water conservation, building over-the-top water features seems like a tough sell, especially the larger projects Aqua Design does overseas. Paulson explained that some other cultures look at water differently than we do. “We have jobs in Saudi Arabia. There, water is held precious to them – they’re conservative with the water,” he said. “But they also want to show you their water. It’s a statement of wealth and power.”
Biz www.BizTucson.com
Summer 2013 > > > BizTucson 123
BizBIOSCIENCE
Rx for Economy: Medical Diagnostics By Dan Sorenson hairs,” Woosley said. “We really need to invest in our strengths and leapfrog ahead. We’re proposing that diagnostics may be the future.” The study found that the Tucson region has the scientific base and the intellectual, financial and commercial leadership to become the preeminent location for diagnostics companies. Joe Snell, TREO’s president and CEO, said the goal was to identify a niche within the bioscience sector where “we could win – and win big.” Bioscience is already one of Southern Arizona’s science sectors, along with aerospace, optics and geoscience. The TREO strategy titled Securing the Lead recommends building on what already works and tightly focusing on the medical diagnostics field. On a fact-finding mission to San Diego in 2012, TREO and
Photos: BalfourWalker.com
Southern Arizona has the assets and the attitude to “own” an emerging biosciences niche – medical diagnostics. Technology advancements and trends in healthcare policy point toward dramatic growth in medical diagnostics – a field in which Ventana Medical Systems in Oro Valley is already a global leader. That’s according to a business development strategy developed and led by Dr. Raymond L. Woosley for Tucson Regional Economic Opportunities. It was presented and discussed by a panel of experts this spring. Woosley is former University of Arizona VP of health sciences and dean of the College of Medicine as well as founding president of the Critical Path Institute and president of AZCERT, an independent nonprofit research and education center. “Every community in the nation has bioscience in its cross
Stephen G. Eggen
Chairman of the Board Tucson Regional Economic Opportunities Retired CFO Raytheon Missile Systems 124 BizTucson
<<<
Summer 2013
Mara G. Aspinall
President Ventana Medical Systems
“
We need to establish a seed-to-success strategy.
”
– Dr. Raymond L. Woosley, Founding President, Critical Path Institute & President, AZCERT
community leaders learned that San Diego’s success in the biosciences was decades in the making. “What we learned in San Diego is that they’re doing today what they prepared to do 20 to 30 years ago,” Woosley said. “That’s what successful bioscience clusters around the country have done.” Woosley consulted with more than 80 community thought leaders and held numerous stakeholder meetings. “What we learned, what we asked was ‘what will be the technology that drives the bioscience economy 10 to 20 years from now?’ ” he said. “Continuing advances in the understanding and application of the human genome and DNA will likely lead medical diagnostic development,” he said. Today medical diagnostics go beyond tests that simply detect disease. Diagnostics can
also pinpoint the treatment most likely to be effective for the individual patient. Woosley said Tucson shouldn’t “let the problems of today keep us from finding the way to get to the ripe future. As hockey players say, ‘Where’s the puck going to be?’ This community is prepared to do that.” Snell said, “The broad expertise of this stakeholder group was critical for developing sound, specific action items. Our goal was to become much more laser focused on the region’s strengths and how they coincide with current healthcare trends and opportunities for future commercialization of bioscience products.” Woosley said, “We need to establish a seed-to-success strategy. We need to incubate scientific discoveries from the university and from companies, accelerate concept-to-prototype continued on page 126 >>>
Joe Snell
President & CEO Tucson Regional Economic Opportunities www.BizTucson.com
Dr. Raymond L. Woosley Founding President Critical Path Institute & President, AZCERT
Summer 2013 > > > BizTucson 125
BizBIOSCIENCE
“
Continuing advances in the understanding and application of the human genome and DNA will likely lead medical diagnostic development.
”
– Dr. Raymond L. Woosley Founding President, Critical Path Institute & President, AZCERT
continued from page 125 development, and connect companies to community resources so that they can grow, prosper and remain in the region.” The TREO event was hosted by Ventana Medical Systems at its Innovation Park campus. Company president Mara G. Aspinall was among the panelists. Aspinall said one way diagnostics technologies can potentially reduce overall healthcare costs is determining which drug is going to work for a specific patient. She cited something as simple as aspirin therapy – the use of regular doses of aspirin to prevent heart attack – as an example. She said aspirin is only effective for 60 percent of patients. Other drugs – including vastly more expensive drugs – also don’t work for all patients. In the case of a five- or six-figure cancer drug, determining a drug’s efficacy with a specific patient, sometimes through use of DNA analysis, could save a huge sum. Part of the future for medical diagnostic growth turns on changing the perception that diagnostics adds to medical costs, several panelists said. Excessive testing ordered by doctors is often criticized as unnecessarily adding to skyrocketing medical costs. Properly applied diagnostics actually lower costs by giving physicians faster and more specific information about a patient’s condition. That allows them to use the drugs that will be the most effective. “The surveys that have been done focus on the over use of diagnostics,” Aspinall said. “We have to change the argument. We have to link it to therapy because otherwise it will be perceived as increasing costs. We have to get across that if we increase diagnostics over here, you will see a reduction of hospital days or drug use.” The BACcel rapid diagnostic system would be one example of that. It is hoped the system will give rapid detection of pathogens responsible for hospital-acquired infections – in less than six hours, versus as much as three days using traditional techniques – addressing a growing and costly problem in the U.S. The BACcel system would also identify specific drug resistance problems, allowing earlier and more effective treatment. The system is being developed by Tucson newcomer Accelerate Diagnostics (formerly Accelr8 Technology Corp.) continued on page 128 >>> 126 BizTucson
<<<
Summer 2013
www.BizTucson.com
Summer 2013 > > > BizTucson 127
BizBIOSCIENCE
continued from page 126 In addition to the synergy of having bioscience firms, the university, BIO5 and C-Path in close proximity, the panel of experts cited other factors that indicate a greater return on efforts to narrow the focus of medical technology growth specifically to diagnostics. Larry Mehren, Accelerate’s CEO, cited the desirability of locating in an area with a highly-skilled and specifically trained labor pool when he announced plans to bring the Denver-based company here last year. Mehren and other principals had previously been associated with Ventana and were familiar with the area’s resources. Looking ahead, panelists said the emerging role of diagnostics pairing drugs known as companion diagnostics offers the potential for growth in the field – but may require FDA approval. Panelist and former Pennsylvania Congressman James C. Greenwood is now president and CEO of the Biotechnology Industry Organization in Washington D.C. He told TREO members to contact their congressmen to educate them on emerging technologies, in part to avoid policy conflicts, particularly in light of the new Affordable Care Act. Greenwood said some changes in the administration of healthcare in the U.S. – from paying for procedures to paying for outcomes – could lead to better use of diagnostics, and in turn be a boost to the industry. “When you pay for outcomes, they (healthcare providers) are going to figure out how to be smart. It becomes in their financial interests,” he said.
Biz
ACTION LIST TREO’s Securing the Lead study resulted in priorities for developing the medical diagnostics field locally. • A National Diagnostics Institute, a privatepublic partnership, would be developed here almost immediately with the first priorities including developing a diagnostics toolkit and establishing shared laboratory space to incubate companies. • In the mid-term, the group would establish a “community accelerator” to assist companies and make efforts to increase cross-border biotechnology manufacturing. • The longterm goals include an increase in “clinical translational research,” which turns basic science discoveries into practical applications, and completion of the “seed to success” strategy. To access the full report, visit www.treoaz.org.
128 BizTucson
<<<
Summer 2013
www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 129
BizLEADERSHIP
National Experts View Changing World By Dan Sorenson To be successful, Tucson’s business community must recognize and deal with ever more rapidly evolving social and economic trends and public policy changes. That’s according to national and state experts on energy, education, healthcare and land use who spoke at Outlooks, a Tucson Metro Chamber business issues conference this spring. “The world is changing. It’s changing very quickly. Our community and our world will look very different here in Southern Arizona in the next few years – whether we want it to or not,” said Michael Varney, the chamber’s president and CEO. “The purpose of the event is to provide local business leaders with the information, perspectives and data they need to lead their companies and move our community forward in the coming years,” Varney said. He said he hopes to make the Outlooks conference an annual event. It was held at the Casino del Sol Resort, Spa & Conference Center. ENERGY Legendary Oklahoma oil man, 1980s corporate raider and recent natural gas advocate T. Boone Pickens didn’t give any hope for a return to $2 a gallon gasoline – but he said the United States could be oil independent – though that could involve some major changes in how we use fossil fuels. He noted U.S. oil production is on the rise – up to 7.5 million barrels daily production from a low of 4.5 million set since the all-time high of 10 million barrels per day in 1973. “We are the only country in the world that has increased production in the last two years,” Pickens said. 130 BizTucson
<<<
Summer 2012
He said the U.S. uses about 19 million barrels per day – 20 percent of the worldwide consumption of 90 million barrels a day. “We’re the biggest user. The second largest is China. They use 10 million (barrels) a day. Our demand
“
Millennials will form between 15 and 18 million new households between 2010 and 2020 alone. This will shape tomorrow’s cities in the way baby boomers shaped today’s suburbs.
”
– Parris Glendening, President Smart Growth America’s Leadership Institute
has been going down.” But that, Pickens said, still leaves the U.S. dependent on outside sources, some of them friendly, some he does not like to rely upon – such as Saudi
Arabia and Venezuela. “We do import about 11 million barrels of oil a day,” Pickens said. “So we are importing about half what we use. There’s a part of it I don’t like. I don’t like Venezuelan imports. I don’t like anything from OPEC. The rest of the oil comes from friends. The part from Canada is fine, which is about 3.5 million barrels (and) about 1.5 (million barrels per day) from Mexico. But Pickens insists we are capable of doing without oil from unfriendly sources. “We can switch our heavy-duty trucks over to natural gas, and that’s 3 million a day,” said Pickens, a longtime advocate for natural gas. “You’re changing from diesel to natural gas for heavy-duty trucks because it saves $2 a gallon – and because it gets us off OPEC crude.” But he said we shouldn’t think that means the price of gasoline in the U.S. will ever go down to $2 again, not as long as there is worldwide price setting and a requirement that U.S. gasoline contain ethanol. Pickens frequently swerved into political territory, bashing the U.S. Department of Energy and anyone associated with government in Washington, D.C. He said his “friend Bob Dole” explained the ethanol requirement to him many years ago. “There are 21 farm states,” he quoted Dole as saying. “‘That’s 42 senators. Forty-two out of 100, you can get whatever you want.’ They want ethanol.” He put in a word for the Keystone Pipeline from Canada, saying the estimated 250 billion barrels in those reserves is equal to the estimated remaining Saudi reserves. continued on page 132 >>>
Parris Glendening, President Smart Growth America’s Leadership Institute
From left – Jeff Stelnick, Senior VP of Strategy, Sales & Marketing, Blue Cross Blue Shield of Arizona and James K. Beckmann, President & CEO, Carondelet Health Network
From left – Philip J. Dion, VP of Public Policy, UniSource and T. Boone Pickens, BP Capital and Natural Gas Advocate
Michael Varney President & CEO Tucson Metro Chamber
Katie Mahoney Executive Director-Health Policy U.S. Chamber of Commerce Summer 2013 > > > BizTucson 131
Photos courtesy of Tucson Metro Chamber
Dr. Cathy Mincberg President & CEO Center for Reform of School Systems
Photos courtesy of Tucson Metro Chamber From left – Cody Ritchie, Crest Insurance; Robert Leinhard, Hallmark Business Consultants, and Jeff Stelnik, Blue Cross Blue Shield of Arizona
continued from page 130 “When you look at the United States in the world energy picture, we are the best. We have the cheapest oil. We have the cheapest natural gas. And we have the cheapest gasoline. So America looks good from an energy standpoint. You go back 30 years ago, not so. Today, everything’s just fine as far as energy is concerned.” EDUCATION Cathy Mincberg, president and CEO of the Center for Reform of School Systems in Houston has harsh words for excuses from underperforming urban and minority districts. She stated that school funding, class size and students’ economic status do not have much bearing on their ability to learn. She cited “lighthouse examples” of districts with large populations of poor and minority children that score well on standardized testing. “Instead of doing what works what we hear people say is, ‘Oh, but the kids are poor. You know, they come from homes that they don’t have breakfast. They don’t have parents who are there. There aren’t enough books. There’s not enough money.’ The excuses keep coming. So instead of focusing on what we know works, what thousands of children have experienced and is proven – we fall back on these platitudes. “If those naysayers are right, why are so many low-income students and students of color performing at very high levels all across the country? 132 BizTucson
<<<
Summer 2013
From left – Rob Elias, Pima Federal Credit Union; T. Boone Pickens, Presenter, and Jim Click, Jim Click Automotive Team
“If that were true – that they’re poor, that they don’t have parents who can be there all the time, that their parents may be in jail or they don’t care or they didn’t feed them breakfast – then why are there huge exceptions to that rule?” Mincberg cited a 31-point difference between math test scores in Detroit and Houston and said “that is really hard to justify because the kids can’t have breakfast, don’t have the right kind of books or their parents aren’t there.” She also mentioned a similar disparity on reading test scores between a district in Florida and the District of Columbia. The difference, she said, “Is these districts do what they can do – not what they can’t. They don’t spend their time whining about ‘I don’t have this. The kids don’t have that. There’s not enough money.’ They leave nothing on teaching and learning to chance.” She said too much about what to teach is left to teachers. “Mr. Pickens does not send his company out and say, ‘Tell me if you find some oil and gas.’ I promise he monitors that within an inch of its life. And in education we leave huge amounts of our core mission out there completely unsupervised and undirected. I’m a former teacher. You’re not sure what to teach.” Mincberg has worked at the forefront of education reform. She also was a longtime board president of the Houston Independent School District and its chief business officer. She also served four years as COO of Portland Public
Schools in Oregon. Mincberg said most states have standards and “you’re supposed to teach to the standards,” she said. Yet in most cases those are only vague directions. She advocates more teacher supervision than can be provided by a principal and suggests, for instance, freeing up teachers so they can critique each other’s performance. She does not think class size is a factor in performance. “I’ve taught 48 and I’ve taught 7– and I will tell you the 48 were easier than the seven,” Mincberg said in an interview after her presentation. “The research says it doesn’t matter unless you’re stuffing 50 kids in a kindergarten class, that’s crazy. But unless you get below 15 you’re not going to dramatically change things.” HEALTHCARE Jeff Stelnik of Blue Cross Blue Shield of Arizona said the healthcare exchanges being set up under the new law amount to “a way to purchase private insurance – just like you can purchase an airline ticket directly through an airline. You’ll be able to go through exchanges very much like that. “We will have the federally-facilitated exchange. It’s the only way individuals (with income) from 100 to 400 percent of the federal poverty level, which is between $88,000 and $90,000 for a family of four, can get access to that subsidy. To get that subsidy you must purchase through the federal exchange,” he said. www.BizTucson.com
BizLEADERSHIP He added that Gov. Jan Brewer’s recent decision to expand Arizona’s version of Medicaid known as AHCCCS would bring about $8 billion over the next four years to the state and help about 300,000 low-income individuals – which he said is something the Tucson Metro Chamber supports. But he said it’s far from “a layup” to get this through the Arizona Legislature. Stelnik predicts a “nasty, nasty political fight.” He said the federal healthcare law is going to impact Arizona more dramatically than many other states. “We have today a fairly robust and stable individual small marketplace for health insurance” – but those rates will go up because of the new law. Though rates here are relatively low, Stelnik said, “20 percent of the population – 1.3 million people in Arizona – don’t have insurance today.” Also putting pressure on premiums will be the feature known as “guaranteed issue” – one of the most popular provisions in the law. Individuals are guaranteed to get insurance regardless of health status and health condi-
www.BizTucson.com
tion. That’s very different from today’s marketplace. Insurers can no longer rate or deny based on health status and a variety of other factors.” He quoted estimates that this feature will reduce the percentage of uninsured in Arizona from 20 percent to 13 percent. Stelnik advised business owners to: • “Know whether you have a grandfathered plan, a plan that dates back three years or more, without any major changes.” • “Do the math. Are you a large group, are you a small group and what does it mean to you?” Stelnik said determining the size of a company involves more than just the number of employees. “Some of the differences have to do with how seasonal employees are treated, how part-time employees are treated.” • “Know your company’s philosophy in terms of whether you want to offer health coverage.” He said some firms may feel “it’s the right thing to do, a great way to retain and attract employees” or that offering insurance “helps you with workman’s
comp and absenteeism.” Or some companies “may want to completely drop coverage.” • He said the situation is exceedingly complex and urged business owners to seek professional help in interpreting the law. “There are 20,000 pages (of regulation) already released – and twice as much expected by next year.” SMART GROWTH Tucson’s modern streetcar and downtown revitalization efforts are a good match for the changing demand of new generations of Americans, according to former Maryland Gov. Parris Glendening, president of Smart Growth America’s Leadership Institute. Glendening said social and demographic shifts in the U.S. – particularly housing demands by young singles and couples just starting families – point toward less sprawl, smaller residences on smaller parcels and enhanced public transportation. Those trends also work well with today’s financially strapped municipal governments. continued on page 134 >>>
Summer 2013 > > > BizTucson 133
BizLEADERSHIP continued from page 133 “Whether you call it sustainable development, what we really mean is making smart use of our tax money,” Glendening said. Building on the fringe can cost up to three times more per acre than urban infill. He said infill and urban development is also being driven by other changes in the nation’s demographic makeup. “Much of it in this part of the country is attributable to the immigrant population,” Glendening said. “Arizona will be one of the first (states) where the minority will become the majority.” In addition to the rising immigrant population, he said Arizona and the nation are being affected by aging – “the senior tsunami.” He said retirees no longer all want to retire to the beach. Many now prefer to age in place or move to urban settings. They’ll need public transportation to meet their needs when they don’t want to, or can no longer, drive. He said that the Millennials will form a larger population boom than the
134 BizTucson
<<<
Summer 2013
baby boomers and are already shaping demand for housing and development patterns. Glendening quoted the Urban Institute estimate that “Millennials will form between 15 and 18 million new households between 2010 and 2020 alone. This will shape tomorrow’s cities in the way baby boomers shaped today’s suburbs,” he said. “We’re moving away from a country of predominantly married couples with children,” Glendening said. “In 1960 half the country was married with children. We’re down to 33 percent in 2000 and on the way to 28 percent in 2025.” The demand for housing is also being shaped by an increase in the number of single households, which accounted for only 13 percent of households in 1960, 26 percent in 2000 but are predicted to rise to 28 percent by 2025, Glendening said. Yet many builders “are still warehousing major new subdivisions following the same old model. The American dream does not meet those demands,” Glendening said. “We are “starting to see a drastic mismatch between what
people want and what we have built. We need to build more attached homes and small homes to meet the demand.” Matching growth to the right areas is also a way to attract and hold “the creative class,” Glendening said. “If a company can locate anyplace, why would it not choose to locate in a place where its employees can be happy, healthy and productive?” he asked, noting a trend that has many Internetbased companies with younger workforces moving from sometimes “idyllic” suburban campus-style facilities to urban quarters with nearby housing, public transportation, stores and entertainment. And he suggested local leaders consider that “there are many communities across the nation competing with you for the talented workforce. “Communities with a strong sense of place are the ones that will succeed in the future.”
Biz
www.BizTucson.com
www.BizTucson.com
Summer 2013 > > > BizTucson 135
Movin’ Up
Surgery Tower Crowns $200 Million TMC Redevelopment By Sheryl Kornman Tucson Medical Center – the community hospital that grew from a sanitorium to treat lung disease in 1926 – now features a state-of-the-art, fourstory orthopaedic and surgical tower. It is the first upward expansion for TMC, reputed for decades to be the nation’s largest one-story hospital. The facilities bring 24 new surgical suites and 40 private surgical and acute care beds to the hospital for orthopaedic, cardiac and other surgical procedures, along with the most sophisticated in operating room technology. Separate pediatric and adult surgery areas were built into the tower, along with separate adult and pediatric waiting areas that resemble comfortable lounges, with ample wiring for portable electronic devices. The high-rise opened its doors for its first public event in April at TMC
HealthCare’s annual Report to the Community, presented by TMC President & CEO Judy Rich and Board Chair Louise Francesconi. The facility opened to patients in May. It is the culmination of a five-year $200 million campus-wide improvement project. Rich and Francesconi reported that Tucson Orthopaedic Institute, located on the TMC campus, moved to the new tower in a collaboration between surgeons and the hospital. Physicians can now see patients in clinic space in the tower without having to travel across campus to perform surgery. Tucson Orthopaedic’s older facilities, at the west end of the campus, will be occupied by other medical offices, while a portion of its physical therapy services will remain there. Its large indoor therapy pool would have been too costly to reproduce in the new TMC facilities.
“Judy (Rich) is making sure TMC is still a community asset,” Donald Shropshire, 85, said at the meeting. He was the hospital’s CEO for 25 years and remains president emeritus with an office at the hospital. The $110-million addition took 20 months to build and provides this community hospital with a world-class facility. As it considered its future, TMC worked with The University of Arizona Medical Center and Carondelet Health Network on a community needs assessment to guide the TMC board and executives in moving forward. “We have to account for every penny,” Rich said. “We are disciplined.” Francesconi, a former chief executive at Raytheon Missile Systems, said she worked closely with Rich to address the community’s increasing need for care
136 BizTucson
<<<
Summer 2013
• 200,000-square-foot, four-story tower • 600-car garage • Widening of west campus roads • Reconstruction of Beverly entrance • Continuation of trail around TMC campus • TMC for Children expansion • Pediatric Emergency Department remodel • Expanded mom/baby unit with all private rooms PHOTO: CARTER ALLEN
From left – Louise Francesconi,Board Chair, TMC HealthCare and Judy Rich, President & CEO, Tucson Medical Center
PHOTOS: BRENT G. MATHIS
Tucson Medical Center 5-Year $200 Million Redevelopment Project
BizHEALTHCARE for cardiac disease, diabetes and hypertension. She said the tower is a sign of TMC’s “deep financial strength” and commitment to care and also shows that TMC has a desire to “do things differently.” At the TMC tower, Tucson Orthopaedic’s doctors now see pre- and postoperative patients in clinic facilities on the first floor. The second floor is TMC Surgical Services, with 14 surgical suites, while the third floor holds an additional 10 orthopaedic surgical suites. The fourth floor has 40 private patient rooms for acute therapies and orthopaedic postsurgical care. For patient convenience, physical therapy facilities are located on the same floor as the post-operative patient beds. The physical therapy area’s openspace plan gives patients in various stages of rehabilitation the opportunity to see others meeting the challenge and making progress. There is also a homey kitchen, so post-surgery patients can practice daily living skills as they get back on their feet. Dr. Scott Slagis, medical director of Tucson Orthopaedic Institute, said surgeons can now view X-rays and scans during surgery, without having to step away from the patient. Of the 10 orthopaedic surgical suites,
www.BizTucson.com
eight are 625 square feet and two are 800 square feet. Stuart Katz, director of the orthopaedic surgery line at TMC who conducted tours of the new facilities in April, pointed out that complete-joint orthopaedic surgery at TMC has one of the lowest infection rates in total joint surgery in the nation. The tower also includes a classroom with seating for 54 to train staff without having to move to another site on the
“
Judy is making sure TMC is still a community asset.
”
– Donald Shropshire President Emeritus, TMC
campus, away from patients. The second floor has a separate family-friendly waiting area for pediatric patients. Touch and play systems, toys and games and media screens are in place. There are separate private consulting rooms on this floor so doctors can talk with families.
Richard Prevallet, TMC’s VP for facilities and construction, supervised the tower project. It includes two hybrid interventional rooms for minimally invasive cardiovascular procedures. LED lighting can be adjusted by each doctor, from a true blue to warm yellow, depending on their preference. Patient check-in kiosks on the second and third floors allow for a streamlined admitting process and improved patient service and safety. Outpatient pre-operative testing for surgical patients at TMC will continue to be conducted in existing medical offices across from the hospital on Grant Road. As TMC grows, Francesconi said TMC’s board is committed to finding ways to take better care of patients. The hospital’s leadership recognizes that “it’s important to keep people home and healthy,” she added. TMC collaborated with Canyon Ranch Institute’s Life Enrichment Program and trained 11 TMC staff members as mentors and coaches in that program. It has also supported patients from the community who can’t afford Canyon Ranch services so they could go there and learn skills to improve health and wellbeing. Coming soon – an onsite gym for staff. Biz
Summer 2013 > > > BizTucson 137
PHOTO: CARTER ALLEN
BizHEALTH
Dr. Peter Kay & Melinda Kay Perfection Plastic Surgery
Plastic Surgeon with Three Specialties By Mary Minor Davis Growing up in South Africa, Dr. Peter Kay had a passionate interest in biology – collecting a veritable museum of birds, eggs and bugs throughout his childhood. He always knew he wanted to be a doctor. Yet it was his love of art combined with his fascination with the biology of living things that ultimately led to his calling in plastic surgery. 138 BizTucson
<<<
Summer 2013
“I was always drawing things – faces, skeletal reproductions, the human body. Connecting my art with my passion for biology was a natural evolution. I became very interested in facial surgery and cranial reconstruction.” For the next 21 years, Kay engrossed himself in his education, receiving his medical degree at the University of the
Witwatersrand Medical School in Johannesburg, South Africa. From there, he went on to complete residencies in plastic surgery, otolaryngology (the diagnosis and treatment of ear, nose, throat, head and neck disorders) and general surgery at the Cleveland Clinic Foundation in Cleveland, Ohio. He is one of the few physicians in his field in www.BizTucson.com
Arizona to carry three specialized degrees. “I loved it. I loved learning. I still love learning,” he said. “All of medicine is rapidly evolving. If you don’t study anything for two years, you’re going to be out of date.” While his chosen field is most recognized in popular culture for the nipand-tuck procedures, Kay said plastic surgery spans a much broader role in medical advancement than many realize – helping millions of patients in the areas of transplant procedures, muscle
scarring. Kay performed a facelift – the youngest he’s ever done – and was able to restore the skin and tissue to normalcy. Kay said a troubling trend today is surgeons in other specialty areas moving into plastic surgery, drawn by the appeal of the growth in the industry and the high profit margins. The American Society of Plastic Surgery reports 1.6 million surgical procedures and 13.8 million in non-invasive procedures. Arizona does not prohibit physicians
results. There are approximately 125 boardcertified plastic surgeons in the Arizona. If a surgeon states he or she is “board certified,” patients may want to check if the certification is in the procedures they are seeking. “Plastic surgeons are trained to take care of the skin and muscle, and they must also understand the psychology that goes along with these procedures,” he said. “It’s a psychology and a surgical procedure. We’re psychiatrists with a knife. If you can practice that way,
“
Connecting my art with my passion for biology was a natural evolution. I became very interested in facial surgery and cranial reconstruction. –
and tissue regeneration and skeletal reconstruction. “Face transplants that used to take several surgeries can be done in one step,” he said. “War injuries have presented plastic surgeons with new and many challenges. Sensory technology now allows for the ability to have the sense of touch in prosthetic hands. There are many, many facets to plastic surgery. “Sometimes it’s the littlest things that you can do that make the biggest difference,” he said. “That’s why I love what I do.” Kay has utilized all areas of his training. He shared a story of one patient who had a tumor in her sinuses. The treatment required the removal of the palette, her sinuses and one of her eyes – requiring reconstruction of an entire side of her face. Ultimately, he was able to extend her life another six years, rather than the six months the diagnosis first offered her. In another example, Kay told of a 7-year-old girl who had been treated for several years for a facial blood vessel tumor, known as a hemangioma, by her dermatologist. Although benign, these tumors are often removed surgically and a skin graft used to repair the damage – but the result can often lead to www.BizTucson.com
Dr. Peter Kay, Owner, Perfection Plastic Surgery from performing procedures that were not part of their formal training – although it is one of 20 states that does require physicians who do perform procedures in their office to go through specialized training and accreditation for safety measures. They also are audited. Kay said he reviews patient complaints for the state Medical Board of Examiners and sees cases involving doctors who think that it is an easy transfer of skills, sometimes with tragic or deadly
Top 5 Reconstructive Procedures in 2011 • Tumor removal (up 3 percent from 2010) • Laceration repair (down 15 percent) • Maxillofacial surgery (up 125 percent) • Scar revision (up 9 percent) • Hand surgery (up 13 percent) Source: Reported nationally by ASPS member surgeons certified by ASPS. Resources American Society of Plastic Surgeons (www.asps.org) ➢ Arizona Medical Board publishes a consumer guide to plastic surgery as well as a checklist to use in finding a physician. (www.azmd.gov)
”
then you’re in the right profession. “You’ve got to be good – and being good is not just as a surgeon. It’s about service, compassion, knowing who you should operate on – and who you shouldn’t take as a patient,” he added. “This isn’t to be taken lightly.” At 63, Kay has decided he’ll “settle out” his career focusing primarily in the area of cosmetic plastic surgery. His wife, Melinda, manages the practice – called Perfection Plastic Surgery – and launched non-invasive skin care services several years ago. Kay said he’ll continue learning and looks forward to watching the advances that are on the near horizon for plastic surgery – including vascular reconstruction, improvements in rejection drugs that have always been a barrier to successful transplants, and the work being done with nerve regeneration. Another area of interest is stem cell research. “We’ve known for more than 20 years that the fat we’ve been using in volumization for facelifts and other procedures has also improved the quality of the skin,” Kay said. “We’ve also known that fat is full of stem cells. If there were a way to extract those cells, we could reduce radiation damage, skin damage, tendon healing, muscle healing… we’ll really be able to make a difference.”
Biz
Summer 2013 > > > BizTucson 139
Thompson to Lead UA Relations Teresa Lucie Thompson, a nationally recognized marketing executive, has been named the University of Arizona’s senior VP for university relations. Thompson comes from Purdue University, where she served as VP for marketing and media and chief marketing officer. She was selected following a nationwide search. Thompson will report to UA President Ann Weaver Hart and serve as a member of the President’s Cabinet. She will aid the president in setting the vision and agenda for advancing the university and strengthening its reputation locally, nationally and globally, according to UA officials. “Teri Thompson has an exceptional national reputation both in the private and higher-education sectors,” Hart said. “I am thrilled to have someone of her caliber leading the efforts to tell the university’s story around the world.” Thompson will oversee institutional communications, marketing, brand management, government relations, community relations and Arizona Public Media. “I was delighted to learn the Latin word in the UA’s university seal means upwards, as it perfectly describes the university’s many contributions to society, its athletic successes and its reputational trajectory under President Hart’s leadership,” Thompson said. “It is with great optimism and even greater enthusiasm that I join this fine institution.” Thompson earned the American Marketing Association’s Higher Education Marketer of the Year Award in 2012.
Biz
Emich Named Marketing Director at Aerospace Foundation Arizona Aerospace Foundation named Mary E. Emich director of marketing, sales and visitor services. The foundation operates the Pima Air & Space Museum and the Arizona Aviation Hall of Fame in Tucson, as well as the Titan Missile Museum in Sahuarita. Emich has served in executive leadership, consulting and sales positions with domestic and multinational advertising agencies as well as regional nonprofits, including the Tucson Symphony Orchestra, Sahuaro Girl Scout Council and Tohono Chul Park. She brings more than 20 years of expericontinued on page 141 >>> 140 BizTucson
<<<
Summer 2013
continued from page 145 ence in marketing and communications to the museums. “We are pleased to have Mary on board,” said Yvonne Morris, executive director of the foundation. “With her expertise we anticipate enhancing our marketing and sales efforts while continuing to improve the visitor experience, especially for families at both our museums.” Emich graduated from the University of Notre Dame with a bachelor’s degree in business administration, with a marketing concentration. Her contributions have been recognized by Procter & Gamble, Kraft Foods, AT&T, the American Red Cross and the Colorado Association of Realtors. The Pima Air & Space Museum is one of the largest aviation museums in the world, and the largest non-government -funded aviation museum in the United States. The Titan Missile Museum is the only remaining Titan II site open to the public. Biz
BizBRIEFS
Romero Heads Bank of America in Southern Arizona Adriana Kong Romero is now Bank of America market president for Tucson and Southern Arizona. “Adriana’s breadth of experience in financial services will benefit our customers as she takes on this important leadership role in Southern Arizona,” said Bank of America CEO Brian Moynihan. “As Tucson market president, she will leverage our local resources and talented team to support client needs and serve the community.” Romero also is senior client manager for Bank of America Merrill Lynch’s business banking group in Tucson and Southern Arizona, which provides strategic, integrated financial advice and solutions to small and mid-sized businesses. She previously worked on growing and expanding the healthcare industry focus for Arizona and served premier banking clients in global wealth and investment management. Romero started with the bank as a teller 14 years ago. Romero and team aim to deliver global financial services to more individuals and businesses locally, while deepening relationships with existing customers. She’ll also oversee corporate social responsibility activities – including philanthropic giving, community development, environmental initiatives, diversity efforts, arts and culture projects and employee volunteerism. She completed her bachelor’s degree in finance at the University of Arizona and master’s in organizational management from University of Phoenix. She’s a member of Tucson Metro Chamber and UA Eller College Associates.
Biz
www.BizTucson.com
Summer 2013 > > > BizTucson 141
BizLEADERSHIP
CREW Unites
Women in Commercial Real Estate By Sheryl Kornman When it comes to succeeding in commercial real estate, it’s often about who you know in the business. Tucson CREW provides the connections that help professional women to flourish. “It’s a fabulous organization,” said Nannon Roosa, a new member of the board of directors of Tucson CREW, the local chapter of a nationwide organization dedicated to the advancement of women in commercial real estate. The group’s 2013 officers and board members join the 100 or so women commercial real estate professionals who’ve served the organization as officers or board members since it began operations in Tucson a decade ago. CREW – Commercial Real Estate
Women – is a group of some 8,000 women in 74 major markets in North America who represent the various disciplines that make up the business of commercial real estate. The organization provides opportunities for women in the region to connect, collaborate and mentor. Tucson CREW is also reaching out to younger women through UCREW at the University of Arizona, which introduces university women to a variety of careers in commercial real estate. Most Tucson members are mid-career experts – some coming from major markets elsewhere – who have joined Tucson CREW to learn, network, inspire and influence the success of the
commercial real estate business for women in the area. Roosa is director of experiential learning at the UA Eller College of Management in its MBA programs. She oversees experiential learning for masters-level students through field projects with some of the area’s key employers, including Raytheon Missile Systems, Microsoft, City of Tucson, Intuit and Tucson Electric Power. Tucson CREW “has such knowledge and accomplished business owners, vice presidents of banks – all the disciplines it takes to do a commercial real estate transaction,” Roosa said. “They are competent and sincere, supportive of each other and very interested in doing business together. They are decision
PHOTOS: AMY HASKELL
From left – Barbi Reuter, C&W | PICOR; Jeannie Nguyen, National Bank of Arizona; Vivian Boggie, Title Security; Debbie Heslop, Volk Company; Linda McNulty, Lewis & Roca; Chris Young, Kuhn Young Law Firm; Beverly Weissenborn, Burke Weissenborn; Marie Parrish, AXIA Real Estate Appraisers; Nannon Roosa, University of Arizona Eller College, and Cindy Dhuey, Temp Connection
142 BizTucson
<<<
Summer 2013
makers.” CREW’s president is Barbi Reuter, who has been a member of the organization for a decade. A principal in PICOR Commercial Real Estate Services, Reuter said CREW is working on gender gap and pay equity issues and trying to bring more women to table representation in executive leadership in commercial real estate. CREW provides referrals for business locally and around the country, she said. The group’s recent member survey shows that “it’s about face time.” Social media works, she said, but “you don’t get the benefits of membership unless you’re here (at CREW meetings).” Lesli Pintor, of National Bank of Arizona, said her involvement with the group has evolved. “It’s been a mission of mine in the last several years to pay it forward and encourage women,” Pintor said. “I am a cofounder of my bank’s mentoring program.” Debbie Heslop, of Volk Company, joined Tucson CREW two years ago from a CREW chapter in Boston, where she also worked as a real estate broker. It’s her first time on Tucson CREW’s board. “Our business is all about problem
“
It’s been a mission of mine in the last several years to pay it forward and encourage women.
”
– Lesli Pintor Commercial Real Estate Manager National Bank of Arizona
solving,” she said. “There’s no difference between Tucson and Boston. If you’re good at listening and taking care of clients’ needs, it’s a pretty easy job.” A referral she received through a Tucson CREW member culminated in the closing in December of a multimilliondollar deal on a student housing project. “Tucson CREW is a very effective networking group and its referrals are quality referrals,” Heslop said. Beverly Weissenborn, of Burke Weissenborn, is a 2013 Tucson CREW
board member and certified general real estate appraiser. “Meeting people in the business when you’re forming sales or just want to know what’s going on – there’s a give and take. You can call a CREW member – you become acquaintances and friends, and you reciprocate,” Weissenborn said. Linda McNulty, 2012 president of Tucson CREW, is an attorney specializing in real estate law and a founding member of the group. It gives women “the ability not only to advance not just in their segments in the industry but as leaders in all segments of the industry. It gives women a way to understand the industry as a whole and have a forum to develop business and their reputation.” Real estate attorney Chris Young, of Kuhn Young Law Firm, is serving her first term on CREW’s 2013 board. “The members are really connected to the community. Having these relationships in place has been invaluable,” Kuhn said. Said 2013 board member Vivian Boggie, of Title Security Agency of Arizona, “People like doing business with people they know. It definitely affects the bottom line.”
Biz
Tucson CREW Award Winners Each of Tucson CREW’s annual award winners is a commercial real estate expert in a discipline integral to the success of the industry. All were cited for their professional achievements, commitment to the community and efforts to improve opportunities in commercial real estate for women. The winners are: Economic Improvement Award – Jane McCollum, GM, Marshall Foundation, which owns and develops properties in the Main Gate area west of the Park Avenue entrance to the University of Arizona. Career Advancement for Women Award – Lesli Pintor, senior VP, National Bank of Arizona. Pintor manages the bank’s commercial real estate group. Member-to-Member Business Award – Sally Bach, owner and manager, G2 Contracting. President’s Award – Loretta Peto, member, Peto & Company CPAs.
From left – Sally Bach, Owner & Manager, G2 Contracting; Lesli Pintor, Senior VP, National Bank of Arizona and Jane McCollum, GM, Marshall Foundation. Not pictured – Loretta Peto, Member, Peto & Company CPAs
Summer 2013 > > > BizTucson 143
BizAWARDS
Cornerstone Awards
Dream Team Receives Top Honors By Sheryl Kornman The Cornerstone Building Foundation celebrated the best in the business at the 19th annual Cornerstone Awards Dinner, held at the Tucson Convention Center this spring. Each year, the foundation selects a construction industry “dream team” of eight honorees including architects, designers, general contractors, professional service specialists, subcontractors and suppliers. “The Cornerstone Building Foundation awards are a very prestigious honor in the design and construction industry,” said foundation President Fernan-
do Galvez. The honorees were selected from 33 finalists by three representatives from each of the seven member associations of the foundation. The member organizations are: Arizona Builders’ Alliance, American Institute of Architects Southern Arizona Chapter, American Council of Engineering Companies, The Construction Specifications Institute, National Association of Women in Construction, Southern Arizona Architects and Engineers Marketing Association and the Southern Arizona Chapter of the Soci-
ety for Design Administration. “Cornerstone represents the vast majority of the commercial building and design industry,” Galvez said. Cornerstone Building Foundation was created as a nonprofit in 1994 by Robert Hershberger, then dean of the University of Arizona College of Architecture, to raise money for scholarships, to honor the best in the building community and to develop stronger working relationships among the building community, according to Brent L. Davis, executive director. continued on page 147 >>>
Kittle Wins Community Service Award
Tom Kittle
Owner/GM Kittle Design and Construction 2013 Jerry Wyatt Community Service Award Winner
“
The Cornerstone Building Foundation honored architect Tom Kittle with the 2013 Jerry Wyatt Community Service Award. A past Cornerstone Award winner, Kittle heads Kittle Design and Construction, a building and design firm. He serves as chair of the Arizona Builders’ Alliance Southern Division. Under his leadership, ABA assisted in the remodel of Esperanza en Escalante, a nonprofit residential rehabilitation center in Tucson that serves military veterans. “ABA’s Volunteer Day efforts not only revitalized these veterans’ housing, but
also their outlook on their futures,” said Tom Dunn, Southern Arizona director of ABA. Kittle was also honored for his creation of ABA/Boy Scouts of America Explorer Post #811 to introduce teens to careers in the construction industry. He served as chair of the Good Scout Awards, helping to raise funds for scouting in Southern Arizona. This award was established in 2010, when “the construction industry lost one its best known members, Jerry Wyatt,” said Brent L. Davis, Cornerstone Building Foundation executive director.
Biz
With Tom’s leadership, disadvantaged youth get a chance to improve their lives through the Boy Scout experience.
144 BizTucson
– Tom Dunn, Southern Arizona Director, Arizona Builders’ Alliance
<<<
Summer 2013
”
www.BizTucson.com
PHOTOS: KRIS HANNING
Winners of 2013 Cornerstone Foundation Awards
Dino Sakellar President & CEO
Ronald H. Schneider Founder/Principal
Architect of the Year Sakellar Associates Architects & Planners
Design Consultant of the Year Schneider Structural Engineers
The company was founded in Tucson in 1956 by architect Nicholas Sakellar. Dino Sakellar now serves as owner and president. The firm’s “passion for design excellence and quality buildings are still the core values of the firm today,” according to the Cornerstone Building Foundation.
The company, founded in 1999, works locally, domestically and internationally to provide planning, design, construction and forensic engineering services. The company’s goal is to provide innovative, cost-effective structural engineering services.
Patrick S. Johnson President General Contractor of the Year (projects of more than $2 million) Chestnut Construction
The general contracting company is in its 23rd year in Southern Arizona. It has completed more than 1,500 projects primarily in the private sector for local and national commercial real estate developers, medical institutions, religious organizations, business owners and commercial real estate professionals.
PHOTOS: KRIS HANNING
Winners of 2013 Cornerstone Foundation Awards
Robert C. Caylor II President General Contractor of the Year (projects of less than $2 million) Robert Caylor Construction
The commercial construction company has been in business in Tucson for more than 50 years and partners with subcontractors, project managers, architects, design professionals, engineers and lenders to achieve the goals of each project.
William R. Ward II Vice Chancellor for Facilities Owner of the Year Pima Community College
The college serves 68,000 students and manages 1.64 million square feet of facilities. The college offers training for 55 regional employers.
Russ Blankenship President Professional Service Company of the Year Reproductions Inc.
The printing services company has served architects, engineers and the construction industry for more than 50 years, and is 100 percent employee owned.
Summer 2013 > > > BizTucson 145
146 BizTucson
<<<
Summer 2013
www.BizTucson.com
BizAWARDS continued from page 145
Biz
www.BizTucson.com
Winners of 2013 Cornerstone Foundation Awards
Rudy Garcia, Sr. President Subcontractor of the Year RG & Sons Plumbing
The commercial plumbing contractor is family owned and is involved in all aspects of commercial plumbing in Southern Arizona. It is a certified minority business enterprise.
Bud Walters Supervisor/ Energy Solutions/AZ Supplier of the Year Southwest Gas
The publicly-traded natural gas distribution company serves 1.8 million customers in Arizona, California and southern Nevada, with 2,500 employees.
Summer 2013 > > > BizTucson 147
PHOTOS: KRIS HANNING
The foundation has donated more than $100,000 in scholarships, Galvez said. Tom Dunn, Southern Arizona director of Arizona Builders’ Alliance, said winning businesses were evaluated for “best practices in the areas of quality of craftsmanship and consistency of service to clients, contributions to the community, quality design and documentation, responsiveness to schedule and budget, proficiency in financial management, emphasis on teamwork and collaboration, backup of warranties and activity in their respective trade or professional associations.” The Cornerstone Awards event sponsor was Southwest Gas. Media sponsor was BizTucson.
PHOTOS: AMY HASKELL
BizRETAIL
Karol Gugino & Ivan Escobell Owners, Elements
Elegant Elements By Valerie Vinyard When you walk into Elements, take a deep breath. You’ll immediately be enveloped in a scent akin to flowers. The wonderful scent could come from a variety of sources, perhaps from the candles or the Jo Malone London perfumes and creams for sale. Whatever it is, the store’s ambiance – and aroma – are quite a change from when Karol Gugino started Elements home décor and gifts 15 years ago in a neighbor’s garage. “We’d be open for a few hours every Saturday,” said the Tucson native. In 1998, she moved into her first storefront, located on East Tanque Verde Road in the La Plaza Shoppes. As years passed, she added to her inventory and chose a larger Tanque Verde spot. She then settled into a location on East Grant Road, where the store re148 BizTucson
<<<
Summer 2013
mained for six years. In 2012, Gugino partnered with interior designer Ivan Escobell and moved Elements to Plaza Colonial, 2870 E. Skyline Drive. Escobell, who has been an interior designer for more than 20 years, met Gugino in about 2001. Back then, he had an office on East Pima Street called Escobell Design Group. He said that his business and Elements complement each other. “It’s like one-stop shopping – from the beginning of the design stage of designing your home to accessorizing to the end,” he said. Gugino’s husband, Bob Gugino, was the first to discover the space that would be the new home for Elements. He called his wife and told her about the spot that housed Argentina Polo & Leather, a mesquite furniture store.
The next day, she visited the spot, which is across the way from Tavolino Italian Ristorante and next to George’s men’s clothing. “Within an hour we all fell in love with it,” she said. “This space is so beautiful.” It’s easy to see why. As soon as you enter the store, a variety of jewelry, linens and artwork catch your eye. On one wall, you’ll find $88 hand-painted memory blocks created by artist Sid Dickens – one of the store’s best sellers. In other corners, you’ll see dishes, flatware and Santa Rosa candles. Elements was added U.S.-made furniture to the mix this spring, including couches, chairs and end tables. If you ascend the regal wooden staircase to a loft-like area, you can meet with Escobell, who designs the interiors of homes and businesses. www.BizTucson.com
Over the years, Gugino has cultivated a solid base of loyal customers. Sheila Fox-Sanford is one of those people. She discovered Elements when it was at the Tanque Verde location and would pop in up to three times a week. “I was working at a title company on the Eastside and I needed some really nice employee rewards and gifts, and I just fell in love with her shop,” said FoxSanford, who is retired and sells her abstract paintings at Elements. “I went in, and I never wanted to leave.” When Fox-Sanford and her husband moved to a house they built in Starr Pass in 1996, items from Elements fea-
www.BizTucson.com
tured prominently throughout. “Everything she had in her shop spoke to our house,” Sanford-Fox said. “I have her things from the dining room to the master bath. She just has exquisite things.” She especially likes the Sid Dickens memory tiles. I think it was a good move for her,” Fox-Sanford said. “A lot of people in the foothills now have better access.” Gugino agreed, noting that there’s more walk-in traffic and the stores nearby complement each other. She enjoys the events that her store and neighboring businesses hold about once a month.
“Part of it is we have more exposure,” she said of the new location, which also offers a bridal gift registry. “Plus, the economy’s better and we get referrals.” Looking ahead, Gugino sees the furniture line of their business expanding, noting that “it’s difficult to find unique pieces, and the sources are limited here.” She said Elements stands out because of its stellar customer service. “We really value our customers,” Gugino said. “We try to be fair and we try to be good for them. It keeps loyalty.”
Biz
Summer 2013 > > > BizTucson 149
BizDESIGN
and The Winners are... ASID Design Excellence Awards The Arizona South Chapter of the American Society of Interior Designers recognizes excellence in the field of interior design each year. The following design firms were honored in the 2012 Commercial and Product Design categories of the competition.
First Place & Best of Show Single Commercial Space nyone using a public restroom knows A the condition can be a clear indication of what the rest of the property may be like. That wasn’t the case at this gorgeous Four-Diamond resort and private golf and racquet club in the Santa Catalina foothills. The bathrooms were fine – but they were ready for an upgrade. The resort is not only a vacation retreat but also an intimate wedding venue and
150 BizTucson
<<<
Summer 2013
popular conference destination. Hotel guests and club members mingle in the lobby – and many stop to use the restrooms. Starting with a desert inspired palette, the concept was to create memorable spaces that would reflect the warm, southwestern lifestyle. With no natural light, use of ruddy tones with lighter accents made the restrooms brighter, conveying a quiet, restful feel. Adding custom elements to a communal setting brought these ordinary baňos to worldclass level.
Interior Designer Lori Carroll Lori Carroll & Associates Client The Lodge at Ventana Canyon & Ventana Canyon Golf and Racquet Club Photographer Jon Mancuso
www.BizTucson.com
First Place Commercial Space Over 3,500 Square Feet Working within a framework of brand standards, this local auto dealership is a showcase for the revitalization and reimaging of the international auto dealership. With the development of new approaches to automotive retail environments, the brand recognized the importance of artwork, greenery, accessories and vehicle display as a medium through which to communicate the brand. These elements are presented in the retail environment to reflect and communicate the desired image of modern luxury. The showroom features a local selection of materials that contain a similar feel and presentation to the international standards Terms such as modern, authentic, refined, vibrant, dynamic, progressive and evocative help define the brand. The look and feel of each element in the space exhibits these principals and contributes to the environment expressing these attributes in a consistent and powerful way. Interior Designer Sally Chavez Office Space Design Client Infiniti of Tucson Photographer Jeffrey Volker First Place Commercial Product Design Harmony, balance and unity within this 19,000-square-foot U.S. Marine Corps dining hall at the Marine Corps Mountain Warfare Training Center are enhanced through customdesigned translucent privacy screens. The screens provide a lovely decorative means to separate the adjacent food preparation and serving areas from the dining space, giving patrons a sense of privacy and bit of acoustic buffering from the common sights and sounds emanating in a large dining facility such as this. The contemporary designed panels are made from durable and budget-friendly Plexiglas material and held in place by stainless steel stantions. The screens feature seasonal photographs of the surrounding Sierra Nevada Mountain Range, the local flora and fauna, and outdoor training scenes capturing the war-fighting Marines in action. They the expansive views through the opposing wall-to-wall, floor-to-ceiling windows that frame the mountain range. Interior Designer Linda Kay Mracek Aviar Design Client Marine Corps Mountain Warfare Training Center Dining Facility Photographer Frank Paul Perez www.BizTucson.com
Summer 2013
>>>
BizTucson 151
BizVISION
Ron Shoopman
Keri Silvyn
Larry Aldrich
Devin Simmons
The Arizona We Want 2.0 presentation featured moderator Ron Shoopman, President, Southern Arizona Leadership Council with panelists Keri Silvyn, Partner, Lazarus, Silvyn & Banks; Larry Aldrich, CEO, Arizona Business Coalition on Health, and Devin Simmons, Value Stream Manager, Raytheon Missile Systems.
The Arizona We Want By Jacquelyn L. Jackson The latest report by The Arizona We Want Institute lays out a roadmap of 39 actionable items the state should implement to create a prosperous future for Arizona. Southern Arizona is uniquely situated to drive those recommended actions, said Lattie F. Coor, the inspiration behind the report. Coor is chairman and CEO of the Center for the Future of Arizona, which launched the Arizona We Want Institute to implement the “citizens’ agenda” that emerged from a statewide 2009 Gallup Poll of 3,606 Arizona residents who shared their vision of what Arizona could be. At a recent meeting of the Southern Arizona Leadership Council, Coor outlined the findings in the latest report called The Arizona We Want 2.0. He 152 BizTucson
<<<
Summer 2013
encouraged collaboration and citizen involvement to enact the recommendations. SALC invited the heads of the city’s major business organizations to attend the presentation this spring – including the Metropolitan Tucson Convention & Visitors Bureau (now Visit Tucson), Southern Arizona Home Builders Association, Tucson Association of Realtors, Tucson Hispanic Chamber of Commerce, Tucson Metro Chamber and Tucson Regional Economic Opportunities. Core told the more than 100 business leaders and elected officials, “You have the ability in this region to act collectively more than in any other part of the state.” When asked to elaborate on that comment, he added, “The SALC meet-
ing itself is illustrative of how Southern Arizona can bring all major business groups together to have a conversation like this. That is unlikely to happen in Phoenix. There is such a strong identity to the Greater Tucson region. That’s difficult to find in other parts of the state. With this level of collaboration, success is possible.” Coor urged attendees to “pick three of the actionable items and set a time schedule for getting them done.” Arizona We Want 2.0 recommends actions in eight key areas – education, job creation, environment and water, infrastructure, healthcare, young talent, civic engagement and community involvement. The challenge is “to get coalitions of organizations behind each of the 39 items,” Coor said. He’s former presiwww.BizTucson.com
dent of Arizona State University. One ready-made collaborative partner is Imagine Greater Tucson, according to Keri Silvyn, chair of the IGT board of directors. She told audience members that the goals of the two organizations are parallel and that “we are both in the act phase.” Silvyn said, “The findings of The Arizona We Want and Imagine Greater Tucson absolutely align. There are problems that need to be solved in our region and the entire Sun Belt – and we need a different set of skills. “An educated citizenry is critical to solving our problems, and we need collective engagement. Citizens want to be listened to and heard. They are tired of each side going to its own corner and then coming out fighting. Everybody must stop thinking of stakeholders as barriers and engage early. The space between challenges and opportunities is where creative solutions will emerge.” According to the report, the top areas where creative solutions are most needed are quality education and job creation.
www.BizTucson.com
“
You have the ability in this region to act collectively more than in any other part of the state. With this level of collaboration, success is possible.
”
– Lattie F. Coor Chairman & CEO Center for the Future of Arizona
On the good-news front, Coor noted that in education a number of major reforms are underway. These include implementation of the Common Core Standards and the new assessment model, more rigorous than AIMS, called Partnership for Assessment of Readiness for College and Careers. The report calls for adequate funding for these major changes and recommends that funding be tied to student, teacher and school performance. On the job creation front, the report
calls for 75,000 new jobs – but points out that Arizona needs higher paying jobs and urges an increase in average wages 30 percent higher than existing county wages. The report also calls for an increase in research and development spending by $5 billion to move Arizona into the nation’s top 10. Arizona is being watched to see what it does with the recommendations. Jim Collins, author of “Good to Great,” “Built to Last” and “How the Mighty Fall,” recently addressed the Arizona Leadership Forum. Coor said he had not discussed The Arizona We Want report with Collins, so was surprised when Collins got up to speak, held up a copy of The Arizona We Want 2.0 and told 200 nonprofit and corporate leaders, “OK, Arizona. I will be back in two years to see how you have done.” Given the wide range of Tucson leaders who listened closely to the 39 actionable items at the SALC meeting, Coors suggests it’s a good bet that Collins will be pleased when he returns in 2015. Biz
Summer 2013 > > > BizTucson 153
BizBRIEF
SALC Names Maxwell VP Col. Edward P. “Ted” Maxwell, who helped lead the Air National Guard’s 162nd Fighter Wing as vice wing commander, has been named VP of Southern Arizona Leadership Council. “Ted Maxwell is the consummate professional and leader,” said SALC President Ron Shoopman. “His passion for our community, communications skills and work ethic make him the ideal selection for a key leadership position at SALC. I am confident he will have an immediate and positive impact on the success of SALC.” Maxwell’s distinguished military career spanned nearly three decades. A 1984 graduate of the United States Air Force Academy, he managed the growth of a multi-billion-dollar program at Langley Air Force Base in Virginia. “I am excited about the opportunity to work with the Southern Arizona Leadership Council,” Maxwell said. “My family’s home will always be Tucson. I am committed to doing all I can to improve our region’s economic conditions as well as to enhance the quality of life of my fellow Southern Arizona citizens.” SALC is a nonprofit CEO leadership organization that engages issues of strategic importance to Tucson and Pima County. Before joining SALC, Shoopman also served as commander of the 162nd Fighter Wing.
Biz 154 BizTucson
<<<
Summer 2013
www.BizTucson.com
154 BizTucson
<<<
Summer 2013
www.BizTucson.com
154 BizTucson
<<<
Summer 2013
www.BizTucson.com