Tag Archives: November – December 2010

Greg Guglielmino

Investment Specialist Greg Guglielmino Joins Colliers' Phoenix Office

 

Colliers International in Greater Phoenix announced that Greg Guglielmino, senior associate, has joined the Phoenix office.

Guglielmino specializes in the acquisition and disposition of single- and multi-tenant office and medical investment properties for private and institutional clients. He partners with Marcus Muirhead, associate vice president of investments. Guglielmino is also a member of Colliers’ National Healthcare Services Group.

“Greg is a skilled professional and a great addition to our team,” said Bob Mulhern, managing director of Colliers. “His experience in office and medical investment sales will complement and enhance the capabilities of our established investment professionals. We are pleased to welcome Greg to Colliers.”

Guglielmino has more than 5 years of experience as an investment specialist, focusing on medical office property sales. He is an expert in financial modeling, property evaluation, detailed market research, and submarket trend analysis.

His experience includes working on behalf of private investors and institutional lenders in the sale of REO assets and investment properties involving closed listings and buyside opportunities. Prior to joining Colliers, Guglielmino was an investment associate with Marcus & Millichap’s Phoenix office.

“There are a lot of great individuals at Colliers and Marcus Muirhead is one of those individuals,” Guglielmino said. “With our similar investment backgrounds and the team approach encouraged within the organization, it is a natural fit to team with him. Together, our abilities and skill sets will add value for our clients and expand on Marcus’ positive track record for success and client satisfaction.”

He adds that the strong camaraderie within Colliers provides a positive, collaborative environment that reflects a commitment to achieving clients’ goals.

“The Colliers’ culture, management and people are refreshing and I am excited to be a part of the team.”

Guglielmino holds a Bachelor of Interdisciplinary Studies in Small Business and Psychology and graduated Magna Cum Laude from Arizona State University.

 

Entrepreneurs Can Reach High Levels Of Success - AZ Business Magazine Nov/Dec 2010

The Entrepreneurs Of Today Can Reach High Levels Of Success — And Impact The World

In today’s fluctuating economy, the notions of entrepreneurship, entrepreneurial leadership and entrepreneurial decision-making are receiving increased attention by citizens, academics, managers and politicians on a global basis. The current global financial crisis has put added pressure on creating new ideas and bringing these to the market, resulting in financial fruition, economic development and employment.

Being an entrepreneur and creating value by establishing a new organization in both the profit and nonprofit sectors in business, as well as the arts, impacts economic and social conditions. This creation process takes more time and effort than one can imagine and is by no means easy, with a high failure rate reaching more than 70 percent in certain countries.

Since entrepreneurs are found in all professions — education, medicine, research, law, architecture, arts, engineering, social work and distribution — the definition of entrepreneurship in my book, “Entrepreneurship,” is relevant: “Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.”

Global entrepreneurial leaders create visionary scenarios that assemble and mobilize participants, who become committed by the vision to discovery and creation of sustainable value. They have a wide variety of attributes, including being a visionary, having a passion for their idea, being a risk-taker, having perseverance, building a team, recognizing opportunities and needs, solving problems, and giving back. Let us look at a few examples:

Leonardo Da Vinci — In addition to his many other titles, Leonardo Da Vinci should be labeled as one of the great global entrepreneurial leaders of all time. It is, in fact, the breadth and depth of his work, his wide-ranging skills and his lasting impact on both the arts and society that reflect the strength of his entrepreneurial vision. He created many new and different pieces of art, devices and ways of thinking that were ahead of their time.

Edward Teach (Blackbeard the Pirate) — From 1716-1718, Blackbeard the Pirate ruled the seas and also was an entrepreneurial leader who flourished in his trade. The pirates who joined Blackbeard’s command often came from the lowest classes of society, or were former members of the British Navy, who found the conditions and treatment they received better than life on farms or plantations. All booty taken by the pirates would be divided evenly among the crew, one part each, save the captain’s two.

Peter the Great — Peter I ruled Russia from 1682 until his death in 1725, bringing about major modernization to his country. His global entrepreneurial vision and leadership gave Russia a new position of power as the country was transformed into a Western empire. Educators, military personnel and businessmen were invited to Russia; the army was modernized; a strong navy was developed; and arts and education flourished.

John D. Rockefeller — John D. Rockefeller was an extraordinary American entrepreneur and philanthropist. Through hard work, determination and a strong competitive nature, he became the world’s first billionaire. Rockefeller chose to change his entrepreneurial pursuits away from making money toward giving it away. From his equity position in Standard Oil, a company he co-founded, he felt the need to disperse his wealth to those less fortunate and formed the Rockefeller Foundation; this started the rise of American social philanthropy.

Madam C.J. Walker — Entrepreneurs often find opportunities and success in spite of great odds and obstacles. Madam C.J. Walker was one such person who identified a gap in the market — hair care products for black women. Walker became the first self-made, female black millionaire in the United States. At one point, she employed more than 3,000 women, and had a wide range of hair and skin care products.

Muhammad Yunus — Muhammad Yunus is an example of a selfless global entrepreneurial leader. After seeing the impact of his first micro-loan and the way in which he was repaid, Yunus began to envision a model that could work anywhere. He found that the poor would often quickly repay their loans with few problems. By the early 1980s, Yunus had expanded to other developing countries, and in 1983 formed the Grameen Bank, the institutional home of his micro-lending practices, both of which were honored with a Nobel Peace Prize in 2006.

Bill Gates — Microsoft founder Bill Gates’ entrepreneurial skills are varied. His company revolutionized the computer industry, helped to usher in the Internet age, and had a deep and profound impact on the daily lives of people around the world. Because of this persistence and risk taking, he shaped the evolution of the information age, making him the world’s richest man in 1995. In 2000, the Bill and Melinda Gates Foundation was founded with the goal of alleviating many of the problems that are afflicting the world’s poorest people. It has grown into one of the premier philanthropic organizations in the world.

The role of global entrepreneurial leaders throughout history indicates the diversity in backgrounds, mindsets and goals that spawn entrepreneurial actions, decisions and leadership. From public sector to private, for-profit to nonprofit, in science, arts, religion, medicine, politics and business, and across industries, the variety of forms that entrepreneurial leadership takes is clear.

For the contemporary entrepreneur who actually starts his or her own business, the experience is filled with enthusiasm, frustration, anxiety and hard work. There is a high failure rate due to poor sales, intense competition, lack of capital, or lack of managerial ability. The financial, social and emotional risks are high, as are the rewards. As history has shown, the individual’s reward can easily set the stage for an accelerated impact on the larger community, region, country or even the world.

Arizona Business Magazine Jan/Feb 2011

Successful Business Women Add Philanthropic Endeavors - AZ Business Magazine Nov/Dec 2010

Three Successful Business Women Add Philanthropic Endeavors To Their Already Busy Work-Life Balance

Giving back to the community is an important component of being a true success in the business world. As the greatest minds in history have declared, responsibility is the companion of power and privilege.

Regardless of workloads or fluctuations in the economy, true business leaders — whether they are corporate executives or entrepreneurs — have acted as stewards of their communities. In recent decades, family life has been added to the mix, making the work-life- philanthropic balance even more challenging, especially for women. But it can and is done every day.

Jordan Rose is the founder and president of Rose Law Group pc, the largest law firm in Arizona ever owned by a woman. She is also a mother of two young boys, and for the past 11 years has been an integral member of the American Heart Association’s Arizona Heart Ball Committee.

Rose’s inspiration to pursue law came from her father, also an attorney, who loved going to work every day.

“I never think of it as work,” she says. “I love what I do, it’s the perfect fit for me.”

The perfect fit means having a team that shares her enthusiasm, work ethic and high standards, so Rose can have time for family and charitable pursuits.

“I wake up every day quite grateful that I have others around to help me do all the things I find tremendously rewarding,” Rose says.

What Rose finds rewarding is giving her time and expertise to not-for-profit organizations such as the Arizona American Heart Association, a group that for more than 50 years has been dedicated to fighting heart disease and stroke — and subsequently poured millions of dollars into this community to support life-saving programs.

“My husband’s family has a history of heart disease, and I have a passion for making any small attempt I can at helping support the medical professionals who are currently researching a cure,” she says.

Rose’s legal and business expertise give her the ability to further support this cause by reviewing and restructuring contracts, so the Phoenix Heart Ball can maintain its low cost-to-fundraising ratio, while at the same time limiting any risk or exposure to members and donors. It’s a charity she loves and a business model she admires.

“I think for-profit businesses could learn a lot about motivating people and managing by shadowing the Heart Ball board,” Rose says.

And she has this advice for working moms who also want to serve the community: “Pick a charity that you have a passion for and you will be grateful, as it will make you happy to wake up and be able to give something back.”

Like Rose, Denise Resnik runs her own business. Denise Resnik & Associates is a strategic marketing and public relations firm she started 25 years ago. Also, like Rose, Resnik has a deep, personal connection to a nonprofit, in this case the Southwest Autism Research and Resource Center (SARRC). In 1993, Resnik’s son was diagnosed with autism.

“We were told to love him, accept him and plan to institutionalize him,” Resnik recalls.

Wanting a better life for her son and other children with autism, Resnik used her knowledge and experience as a business owner to find a better outcome.

“I allowed my heart and entrepreneurial spirit be my guide,” she says.

Years later, what started as a mother’s support group is now the 18,000-square-foot Campus for Exceptional Children and a 10,000-square-foot Vocational and Life Skills Academy. Both are focused on advancing research and providing support for thousands of individuals with autism and their families throughout their lifetimes.

“SARRC is another full-time job for me and a major pro bono client for our firm,” Resnik says.

As for finding the work-life balance, Resnik says, “I layer many of my priorities and interests, like creating big ideas and plans, while hiking with friends and colleagues through the Phoenix Mountain Preserve with our son and daughter.”

Her business acumen helped her build SARRC, and in turn SARRC has taught her some valuable business lessons.

“Our board and staff at SARRC lead by example and demonstrate for us all what it takes to make our community a better place, and what businesses and individuals can do to forever impact our community and change lives,” Resnik says, adding that if you’re thinking about volunteering, even if your plate is overflowing, you’ll find a way to make it work.

“The return on your investment will likely exceed your expectations,” she says. “It certainly exceeded mine.”

Michelle Kerrick, managing partner of Deloitte, stands tall alongside Rose and Resnik in terms of the tremendous impact she’s making on the community. She too juggles motherhood, a demanding career and her passion for volunteering.

“My position at Deloitte has a strong market focus, so it can be a win-win-win for me, the firm and the not-for-profit,” she says. “I get the opportunity to meet other key leaders in our community, while also giving back.”

The organization Kerrick “gives so much back to” is Fresh Start Women’s Foundation (FSWF).

“I was inspired by the cause,” Kerrick says. “FSWF is all about women helping women and developing confidence and self-esteem.”

Kerrick knows that financial stewardship is key to success, so it’s no wonder her business, financial and risk management skills benefit a charity like Fresh Start.

“I started my board work with FSWF as the treasurer of the board, held a number of other positions and have also chaired the annual gala fundraiser,” she says. “I believe my background has been particularly helpful in these challenging economic times.”

In turn, her involvement with FSWF has had a tremendous impact on her life.

“When I meet women striving to improve their lives, it makes me more focused to lead a better life and be a better example to my daughter,” Kerrick says.

So although it’s not always easy being the perpetual plate spinner, Kerrick says it’s worthwhile.

“I want to make sure organizations like FSWF are available for the next generation of women.”


Jordan Rose - Rose Law Group pcJordan Rose
Rose Law Group pc

Charitable Organization: Phoenix Heart Ball
Favorite Quote: “Bring all your capacities to a situation and stick with it — apply all you’ve got to make fate unfold.” — Jim Balsillie, R.I.M.


Denise Resnik - Denise Resnik & AssociatesDenise Resnik
Denise Resnik & Associates

Charitable Organization: SARRC/Southwest Autism Research and Resource Center
Favorite Quote: “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” — Margaret Mead

Michelle Kerrick - DeloitteMichelle Kerrick
Deloitte

Charitable Organization: Fresh Start Women’s Foundation
Favorite Quote: “Be the change you wish to see in the world.” — Mahatma Ghandi

Arizona Business Magazine Nov/Dec 2010

Photography of Joel Sartore - AZ Business Magazine Nov/Dec 2010

Life Through The Lens Of Wildlife Photographer Joel Sartore

It is summer in Antarctica. Frigid temperatures have been replaced by mild, 50-degree days.

Surrounded by green hills rolling into lush, snow-capped mountains and thick fog, Joel Sartore is crouching low to the ground. Usually, it is he who is chasing his subjects, but this time the tables have turned. Instead, in the middle of the beach-like terrain, Sartore is surrounded — by penguins. King penguins to be exact.

“Most of the time the animals I’m seeing are running away, they don’t want anything to do with me,” Sartore says, adding that the King penguins did the exact opposite. “They just wanted to stare at me. I got low on the ground and they stood right over me and looked at me. The whole thing was just tranquil, peaceful, and one of the most impressive things I’ve ever been a part of.”

Most of us will never get the chance to experience such an event. But for Sartore, it’s just another day on the job. From Antarctica to Russia, he has seen it all. Throughout his 20-year career working as a photographer for National Geographic, Sartore has traversed the globe, photographing everything from rare wildlife to hurricane aftermath and even state fairs.

“Once I discovered photography, there was never any turning back for me,” he says.

Sartore’s impressive body of work has been featured in Time, Life, Newsweek and Sports Illustrated. He also has contributed to several book projects and has been the subject of national broadcasts.

In addition to his talents as a photographer, Sartore devotes his energy to conservation efforts. A Nebraska native, he is committed to conservation in the Great Plains, is co-founder of the Grassland Foundation, and a founding member of the International League of Conservation Photographers.

Sartore will share his passion for sustainability as the speaker at Valley Forward’s 41st Annual Luncheon on Dec. 3.

“That is just an excellent group. There needs to be 100 groups like them. We have to start talking about this stuff and realizing that it’s easy to be green. It’s certainly a better way to live your life,” Sartore says. “There needs to be more and more people thinking and caring about the earth. We don’t have the luxury of time to count on the next generation to start saving the planet. We have to be doing it now.”

Sartore addresses the global environmental crisis using photography as his platform.

“I really am constantly faced with environmental problems,” says Sartore, a self-professed hyperactive person. “My job is to get people to think.”

While photographing the American Gulf Coast during one of his first assignments for National Geographic, Sartore was drawn to the plight of animals and the environment.

“I remember walking the beach and the bottom of my feet were black with spilled tar and oil, and there was garbage and a dead dolphin wrapped in plastic,” he says. “When you see things like that it makes you think that we could be doing a lot of things better, could be treating the Earth better.”

Sartore’s focus on building a sustainable future has allowed him to draw attention to issues that are often overlooked. His latest book, “Rare: Portraits of America’s Endangered Species,” sheds light on some of the country’s most endangered species of plants and animals, and what the public can do to help. “Rare” was originally inspired by a magazine assignment, before turning into a personal project for Sartore and later a full-fledged book.

Several of the subjects featured in the book were shot in Arizona, including the California condor, photographed at the Phoenix Zoo; and the Tarahumara leopard frog, photographed at the Arizona Sonora Desert Museum in Tucson.

Although, sadly, one of the other animals featured in the book, the Columbia Basin pygmy rabbit, became extinct during the book’s production, Sartore emphasizes the importance of highlighting environmental issues.

“It was a very good experience to give a voice for the voiceless,” Sartore says. “The encouraging thing is that most species in the book could make it if we pay attention to it. I guess that’s what I try to convey to people: There’s always hope. These things are absolutely worth saving.”

Sartore’s passion for photography began in high school and continued into college, where he earned a degree in journalism with an emphasis in photojournalism from the University of Nebraska. Thanks to some great mentors, Sartore decided to pursue a career in photography, but he didn’t forget his journalism roots.

“In any of these situations I go into, I bring with me a reporter’s aesthetic and background to it,” he says.

This background has proven beneficial, as he shoots such a wide variety of subjects in exotic locations around the world.
“I want to know why things are the way they are and how to fix it,” he says.

As thrilling as his job may be, it comes with its share of dangers. When asked how many times has he almost been killed, Sartore responds on his website: “More than I care to tell my wife about for sure.”

He hasn’t let the danger stop him, but he does try to err on the side of caution.

“You can’t take more pictures if you’re dead,” he writes.

Sartore continues to journey around the globe in search of the next great photo. Currently, he’s preparing to travel to Africa for an assignment. Despite two decades of experience under his belt, Sartore still worries.

“I’m very nervous that I’ll fail, starve and die, in that order,” he says. Irrational fear or secret to success? Maybe worrying is just part of the job, Sartore adds.

“Everything has worked out well so far, yet I’ve always been very worried that nothing ever would,” he says. “With a strong story you may just reach those people who can change the world. If I can right a few wrongs, then that’s probably a life well spent.”

    If You Go:
    Valley Forward’s 41st Annual Luncheon
    11:30 a.m.-1:30 p.m.
    Dec. 3
    Hyatt Regency Phoenix
    122 N. Second St., Phoenix
    Reservations: info@valleyforward.org; (602) 240-2408


Arizona Business Magazine Nov/Dec 2010

Advance And Retain Women’s Role In The Financial Field - AZ Business Magazine Nov/Dec 2010

Two Valley Groups Are Working To Advance And Retain Women’s Role In The Financial Field

It wasn’t so long ago that a typical business meeting at a banking or financial institution was dominated by the good ol’ boys network. Well, not anymore. Today, you are likely to see more women among the dark suits at the table.

“I have watched women evolve,” says Deborah Bateman, executive vice president of specialty banking and marketing at National Bank of Arizona, and a founder of the Women’s Financial Group. Bateman boasts a professional background spanning more than 40 years in the banking industry.

“Early in my career, I think we tried to mirror men,” she says. “Over time, women have recognized the skill sets they can bring to business, such as collaboration, connecting, coaching (and) creating value inside Corporate America.”

Women’s roles in the banking and finance sectors are widening, and the proof is in the numbers. In 2009, according to the U.S. Department of Labor, 54 percent of American women were employed in fields related to financial activities. This includes finance and insurance, banking and related activities, securities, commodities, funds, trusts and other financial investments. In Arizona, the percentage of women working in the finance and insurance industry also is significant. U.S. Census data shows there are actually more women than men working in these industries.

Although women have come a long way from their beginnings in these formerly male-dominated sectors, it is an ongoing struggle. According to the U.S. Census Bureau, the disparity in salaries for men and women is significant.

In the Phoenix Metro area, during the third quarter of 2009, women made up 14.4 percent of the 35-44 age work force in finance and insurance (private sector) versus 10.4 percent for men. However, women in these fields average a monthly salary of $4,350, compared to men’s $6,643. For women aged 45 to 54, the salary gap grows even wider. In this age group, men on average earn 64 percent more.

“Women need to be more assertive about asking for money and tooting their own horn,” says Donna Davis, CEO of the Arizona Small Business Association (ASBA) and a member of the Women’s Financial Group. “It’s OK to promote your organization, it’s OK to ask for money and to ask for more.”

However, Emily Amparan, vice president of development at Factors Southwest, says she thinks the numbers don’t reflect the real gains women are making.

“I always hold those figures suspect, as I rarely encounter hindrances to make money and achieve success in the financial field,” she says. “I think if you believe it to be so, it probably is … however, the most successful women in the finance industry don’t pay any mind to talk of obstacles, as they forge ahead to make their own path.”

Helping women make their own paths in the financial sector is the mission of a number of organizations emerging all over the Valley. For example, Bateman founded an internal mentorship program at National Bank of Arizona in 2009, that quickly expanded to outside industries and individuals. Later renamed the Women’s Financial Group, the organization’s focus is to bring together women of all professional backgrounds to promote financial planning, mentoring, business services and networking.

Bateman says she hopes the Women’s Financial Group can serve as a catalyst for women to succeed and attain higher positions in banking and finance without compromising their identities.

“For years and years, we would dress in tailored blue suits and wear ties,” Bateman recalls. “Women can be women in the business world. It brings enormous value to business, to their organizations and to the community.”

In addition, Davis says the group can help “women become more savvy financial business people.”

At a recent Women’s Financial Group event, women of diverse backgrounds, both personal and professional, filled the room. Some women were just beginning their careers and some were veterans with decades of experience. But all were there with a mission: to pave the way for future success in their respective financial careers.

Another group aimed at women in the financial sector is Women in Banking, the local chapter of the national Risk Management Association. Founded in 2006, its first meeting took place at a Chevy’s restaurant with 14 business women in attendance. Today, the group includes 50 to 80 bankers, consultants, marketers and business owners from around the Valley. And despite its name, the committee encourages men to join and attend its events.

“There is definitely a need for a professional organization that brings business and banking together for positive networking,” says Amparan, who is a member of the organization’s leadership team.

Along with helping women plot their careers in financing, Women in Banking is a strong supporter of Fresh Start Women’s Foundation, a nonprofit organization dedicated to helping women in areas such as career change, personal growth, family relationships and more. The group collects clothes for donation and works to raise money to sponsor Fresh Start’s annual golf tournament and fashion show.

That type of commitment to all women in the community is just one example of the impact women professionals in finance are making.

“Women in business are tremendous bridge builders and relationship makers,” Amparan says. “Banking and finance has become more of a warm, open environment to the credit of professional women across the state and country. People are starting to take notice of the successful way women are starting to do business and build relationships.”

Arizona Business Magazine Nov/Dec 2010

Elements at the Sanctuary - AZ Business Magazine Nov/Dec 2010

Elements At The Sanctuary Provides A Feast For The Eyes And Stomach

My dining companions and I took in the gorgeous view at the Sanctuary Camelback Mountain Resort & Spa in Paradise Valley, as the sun set behind Mummy Mountain in a swirl of pink and purple, before settling into a deep blue. But make no mistake, it was the food that took center stage.

elements’ location within the Sanctuary must be some sort of homage to the resort’s name, as the restaurant is truly a haven for food lovers. With prominent chef Beau MacMillan — of Iron Chef America fame — at the helm, elements has flourished into an innovative restaurant with a flair for bringing out the best in every dish. MacMillan has a passion for fresh and organic ingredients, and believes food should be appreciated for its simplicity and natural goodness. After the Sanctuary’s renovation last year, elements’ kitchen doubled in size. MacMillan seized the opportunity to expand the menu to feature more local ingredients obtained from organic farmers, hormone-free meats, as well as more vegetarian and gluten-free dishes.

In the sleek, modern dining area, we began the night with some exquisite ginger eggplant hummus, served with fresh, crunchy bread. The hummus was unlike anything I’d ever tasted before, with an unexpected ingredient, ginger, that gave it a kick.

For our appetizers, we chose the roasted corn bisque, black truffle and lobster fritter; the pan fried, short rib ravioli topped with sugar-cured shallot, horseradish hollandaise and tomato jam; and last but not least, the crispy soft shell crab with green garlic aioli. They were all, to put it bluntly, fantastic. Each appetizer had its own unique flavor, but somehow left us with the same expression: Yum! The bisque had a smooth, creamy texture with hints of lobster. Meanwhile, the pan-fried, short rib ravioli was definitely a new spin on an old favorite.

Next up we sampled elements’ salads, which also featured an interesting mix of ingredients. The braised bacon and poached egg salad sounded more like breakfast, but turned out to be a good complement to the organic greens, shaved vegetables and soy sesame vinaigrette. But the standout was definitely the beet salad, featuring salt roasted beets and fennel, goat cheese, mizuna and toasted walnuts.

Soon it was time for the entrees. Over pleasant conversation and beautiful backdrops, we sampled various dishes. From the classic chicken dish to the special of the day, we kept our taste buds tingling. Another old favorite that garnered positive feedback was the prime flat iron steak. You can’t really go wrong with steak, and elements turned things up a notch — with roasted oyster mushrooms, heirloom baby potatoes and spring onions. After the tasty ginger hummus, we selected the carrot and ginger gnocchi as one of our dishes, and a good thing we did. The punch of flavor that the ginger brought once again surprised us — an unexpected but perfect addition.

Of course, we couldn’t leave without sampling some dessert. And were we glad we did. The piña colada was just as delicious as the cocktail, minus the alcohol. Featuring warm pineapple upside down rum cake with vanilla coconut anglaise and coconut gelato, it was the perfect ending to an exquisite meal. You might say all the “elements” were there for a perfect evening, as well.

If You Go:
elements at Sanctuary
Camelback Mountain and Spa
5700 E. McDonald Drive
Paradise Valley
(480) 948-2100

Arizona Business Magazine Nov/Dec 2010

Rommie Flammer President and CEO China Mist Tea Brands - AZ - Business Magazine Nov/Dec 2010

China Mist’s Rommie Flammer Talks About Her First Job

Rommie Flammer
Title: President and CEO
Company: China Mist Tea Brands

Describe your very first job and what lessons you learned from it.
At 12 years old, a friend and I got together a bucket, soap and a sponge, then went door to door asking if we could wash our neighbors’ cars. When they would ask “how much,” we would say “whatever you want to pay us.” I quickly learned my first business lesson, which is have an idea of what your service is worth before heading out. This job was short lived after we knocked on the door of Vern and Claudia Lipp, who bred and showed Himalayan cats. When we asked if we could wash her car she replied, “No, but I have a bunch of litter boxes that need cleaning and cats that need grooming.” …  For the next three years I cleaned and groomed cats, a job that could have definitely earned a spot on the Discovery Channel’s “Dirty Jobs with Mike Rowe!”

Describe your first job in your industry and what you learned from it.
My first industry job was at China Mist right around the time I turned 16 years old. Over the course of 26 years, I have learned an incredible number of lessons and I still learn something everyday. … The most important lesson is to surround yourself with truly great people because your team is your greatest asset. Average employees don’t last long at China Mist. Next, is to always challenge the norms of your industry. … Indeed, it is the people who continually strive for a better product, better process, etc., who set themselves and their companies apart from the rest. Finally, focus on what you do best.

What were your salaries at both of these jobs?
When I started at China Mist, I earned minimum wage, which was around $3.35 per hour at the time. I cannot recall my hourly wage at Hotlipps Cattery, but the memories are priceless.

Who is your biggest mentor and what role did they play?
I have had many mentors along the way, but would have to say that Mignon Latimer has been the biggest in my career. Mignon is the wife of a consultant hired by China Mist some years ago. I was an 18-year-old general manager at the time I started working with her. She taught me how to read and interpret financial details important to the company and precisely why they mattered. She gave me a truly sound financial base from which to build.

What advice would you give to a person just entering your industry?
While the barrier to entry is quite low, the competition is strong, so be sure you have a strong point of differentiation.

If you weren’t doing this, what would you be doing instead?

I really cannot imagine doing anything else, but if I had to pick a new industry it would be something in real estate.

Arizona Business Magazine Nov/Dec 2010

Misgana Kebede Company - Accent Transportation Services - AZ Business Magazine Nov/Dec 2010

A Dream Becomes A Reality for Ethiopian-Born Small Business Owner Misgana Kebede

Misgana Kebede
Company: Accent Transportation Services
Title: Owner | Est.: 2008
Web: www.transaccent.com

In May 2008, during the roughest stretch of the recession, a husband-and-wife team made a bold decision to start their own transportation business. Misgana Kebede and his wife, Bilen, started Accent Transportation Services, which specializes in executive car service around the Phoenix area.

Kebede moved to the U.S. from Ethiopia and was drawn to the tourism industry early on. In fact, he worked at various hotels and theme parks after high school and during college. Kebede eventually earned degrees in finance and logistics, transportation and supply chain management.

Prior to the creation of Accent Transportation Services, Kebede was working for Honeywell Aerospace in the supply chain department. Although he was learning a lot about the business, Kebede realized he wanted something more than to work in a cubicle.

“I had the dream of becoming a business owner, and a desire to serve others from the heart,” Kebede says.

When Kebede first started his business, the transportation industry was being hit hard by the economic downturn.
Companies were cutting down on travel costs, and car and limo services weren’t in demand. Despite the challenges, Accent Transportation managed to stand out to clients. Accent Transportation gains most of its business from repeat customers, and has grown from one vehicle to a seven-vehicle fleet within two years.

“Building a repeat customer base tells us we’re doing something right,” Kebede says. “Seventy to 75 percent of our business is repeat customers.”

Accent Transportation retains its customers because it continually focuses on improving the level of service it provides. It offers easy, online registration and account management. Customers can choose from Lincoln sedans, SUVs, stretch limos and a mini-coach. Kebede also emphasizes the importance of being on time.

Another major part of customer retention is that Kebede’s employees have excellent customer service skills. When looking to hire new employees, Kebede looks for people who already have spent time working in the hospitality business.

“If you know how to serve people, anything else can be learned,” Kebede says.

Kebede knows that building a business from the ground up is especially hard right now, but he is committed to his work.

“The first and foremost thing is to have a passion for what you do,” Kebede says. “Plan your days, weeks and months. Think about what will grow your business, not just what will help you get by.”

Arizona Business Magazine Nov/Dec 2010

The idea of starting your own business can be frightening with the recession - AZ Business Magazine Nov/Dec 2010

6 Tips To Launching Your Own Business In A Down Economy

The idea of starting your own business can be frightening, particularly with the recession stubbornly choking the Arizona economy. However, by following a few tips for getting started, launching your own company doesn’t need to be scary.

In fact, there are a few advantages to launching a business during an economic downturn. Commercial space is available at extraordinarily good prices. Talented professionals are looking for work. Goods and services can be found at discounted prices. And, depending on your industry, competition may be scarce.

1. Practice Due Diligence
It’s critical to objectively evaluate your proposed venture. Asking yourself some hard questions may discourage you from pursuing your first venture, but that is not a negative or pessimistic approach. It’s a useful tool for evaluating your business. Start with these questions: Is there a genuine need for the product or service you are offering? Is that need already being met by established companies? If so, what improvement or unique feature are you bringing to the table? Do you have the necessary skills and resources to start your business? If not, are you prepared to bring in the people with the skills and capital that are needed, and possibly give up some ownership?

2. Prepare a Business Plan
Too often, entrepreneurs articulate a great idea and foresee success, but gloss over the hard work. That hard part is thinking through the idea for your business and writing it into a plan, including the steps you’ll need to take to implement your idea. Start with an outline and consult a book or online guide about writing business plans. It’s important that your end result is a completed plan that includes a budget for your business.

3. Determine Capital Requirements
Most small businesses are funded with the business owner’s own money and funds from family and friends. A venture capitalist or angel investor may provide the necessary capital in exchange for part ownership of your business. It’s critical to focus on the amount of money you will need to start and operate your business, including at each stage of the company’s development.

4. Create a Board of Advisers
Creating a network of advisers can be a tremendous asset to a start-up business. It’s helpful if that board consists of advisers with a diverse array of professional backgrounds. That diversity will ensure you receive insights from a wide range of perspectives. Good choices for advisers may include your attorney, accountant, suppliers, customers, bankers and realtors.

5. Tap Into Available Resources
There are myriad advisers, consultants and nonprofit agencies that will assist you in developing your business — marketing it, creating websites and raising capital — who work for free or a nominal fee. The Small Business Administration (SBA), for instance, is a valuable and cost-effective resource. Moreover, SCORE: Counselors to America’s Small Business, provides free advice and mentoring for small business owners. If you pay for a similar service, be sure to get recommendations from a trusted adviser. Then, check that company’s references.

6. Listen
The more you listen — the more you truly hear an adviser’s ideas — the more advice you will be able to translate into actionable plans for your company.

Still, while these recessionary times may present a good opportunity for entrepreneurs, there are several considerations to keep in mind.

Select an industry that is doing well, despite the recession. The health care industry, senior care and information technologies are financially better off than many other industries.

Choose a business sector with a bright future — Businesses that tap into growing consumer demand for green or sustainable products may be an avenue worth pursuing. There was a 41 percent increase in consumer purchases of green products and services from 2004 to 2009, according to the research firm Mintel. Moreover, there may be federal or state subsidies or tax credits available for green companies.

Select a company with low capital requirements. Home-based businesses with low start-up costs may be good choices, notably because the ongoing credit crunch will likely make it tough to get a loan to cover these expenses.

If you are considering starting your own business, you will be in good company. More than half the companies listed on the Fortune 500 in 2009 were launched during a recession, according to the Ewing Marion Kauffman Foundation.

Moreover, in 2009, an average of 558,000 new businesses were launched each month in the United States.

The trick to joining these ranks is to get started. There’s no better time than now, recession or not.

“The critical ingredient is getting off your butt and doing something,” Nolan Bushnell, founder of both Atari and Chuck E. Cheese, once said. “It’s as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer.”

Arizona Business Magazine Nov/Dec 2010

Many Arizona Small Businesses And Banks Say A Federal Loan Program Isn’t Needed - AZ Business Magazine Nov/Dec 2010

Many Arizona Small Businesses And Banks Say A Federal Loan Program Isn’t Needed

President Barack Obama has signed a bill that aims to increase small business lending. But it’s not exactly popular among Arizona’s small companies and community banks. They question whether a multibillion-dollar loan fund created by the legislation will achieve its goal.

The Small Business Jobs and Credit Act of 2010 will establish a $30 billion Small Business Lending Fund within the U.S. Treasury. The Treasury will use that money to purchase preferred shares in small- to medium-size banks that voluntarily participate in the program, injecting new capital that the banks would be encouraged to lend to small businesses. The more loans the banks make, the lower the dividend rate they pay the Treasury.

“As a small business owner, I am allergic to government intervention,” says Charlie O’Dowd, president of Westcap Solar, a Tucson company that sells and installs solar photovoltaic and solar hot-water systems. “I don’t think that this legislation is going to be any more effective than the TARP (Troubled Asset Relief Program) legislation. In this economy, it’s not that there isn’t money to be borrowed. It’s qualifying for the loan that’s the problem.”

The new law also gives John P. Lewis a bad taste in his mouth. Lewis is president and CEO of Southern Arizona Community Bank in Tucson, and a member of the FDIC’s Advisory Committee On Community Banking.

“Last January, the committee had a robust discussion (on the legislation),” Lewis says. “The committee said, ‘We don’t want to be a part of this.’ Community banks don’t need the additional capital. I have more money than I know what to do with. I need qualified borrowers.”

O’Dowd and Lewis describe a situation that is frustrating for both and that neither believes government policy will resolve. O’Dowd says small businesses’ sales are slow, impacting their ability to qualify for loans. Lewis says his loan demand is flat because there are fewer qualified borrowers.

The Arizona Small Business Association points to a wary small business community that’s in no mood to take on more debt. Earlier in the recession, small businesses tried in vain to obtain bank loans, but now they are in survival mode, says Donna Davis, the association’s CEO.

“Bank loans are not at the top of their list now,” Davis says. “Some businesses have lending fatigue. They just gave up (trying to get loans). Now they are focused on lack of sales. If sales don’t pick up, if work doesn’t pick up, they won’t seek credit. If they can boost sales and profits, then they can justify hiring and expanding.”

One outside observer sees a triumvirate of doubt that the legislation will not mitigate. Dennis Hoffman, professor of economics at Arizona State University’s W. P. Carey School of Business, says this recession has caused consumers, businesses and banks to lose their confidence. Lacking the good credit risk they saw five years ago, banks have “pulled in their oars,” Hoffman says. Creditworthy businesses fret so much over the economy, they don’t even apply for loans. Recession-scarred consumers remain stingy.

“We need to climb this wall of worry to get out of this morass,” Hoffman says. “This is a market-based, private-sector issue that will have to work itself out.”

Gail Grace, president and CEO of Sunrise Bank of Arizona headquartered in Phoenix, doesn’t sense much support for the legislation among Arizona’s banks, and wonders how many community banks would be able to participate.

“Community banks in Arizona are stressed and many may not even qualify for this program,” Grace says. “You will still have to have a fairly healthy bank to qualify for this.”

Not everyone has a dim view of the law. Robert Blaney, Arizona’s Small Business Administration district director, notes that the law will increase the SBA’s loan guarantee from 75 percent to 90 percent, easing banks’ risk on those loans. The law also will lower fees and raise the SBA’s maximum loan amount from $2 million to $5 million. There are thousands of small business owners nationwide that were waiting for the lending bill to become law, Blaney says.

One of those is Benefits By Design, a Tempe company that sets up health benefit plans for small businesses. The company’s president, Kristine Kassel, says there is a need for loans and it would be helpful if just two community banks expanded their small business lending. She adds that any amount of new credit that can be extended to small businesses is a good thing.

Banks interested in acquiring low-cost capital might be attracted to the Treasury fund and they might be enticed by the built-in incentives to direct new-found capital into small business lending, says Dan Stewart, Arizona market president for Mutual of Omaha.

But then he echoes what others say: “The (law) doesn’t encourage banks to take on more credit risk, so qualified borrowers are the key.”

    By the Numbers
    The Small Business Jobs and Credit Act of 2010



  • Establishes a $30 billion Small Business Lending Fund within the U.S. Treasury
  • Treasury will use money to purchase preferred shares in small- to medium-size banks that voluntarily participate in the program
  • SBA’s loan guarantee would increase from 75 percent to 90 percent
  • The SBA’s maximum loan amount would increase from $2 million to $5 million

Arizona Business Magazine Nov/Dec 2010

Christine French - Creates a Nonprofit & successful entrepreneurial venture. - AZ Business Magazine Nov/Dec 2010

Christine French Of The Nonprofit Diversity Leadership Alliance & Global Diversity Consulting

Christine French Took Her Expertise In Diversity To Create A Nonprofit And A Successful Entrepreneurial Venture.

Even as a young child growing up in Vietnam, Christine French always knew her main purpose in life was to help people from different backgrounds and experiences come together and form a whole.

“When I was eight, the first lesson in social studies was talking about ambassadors. Right then and there I stood up and announced to my teacher and my class, to their surprise and mine, ‘I am going to be one of those,’” French says. “The ambassador, as I learned that day in the lesson, is the person who helps people understand each other so they no longer have a need to fight, to have war. That has followed me since I was eight.”

In 2002, in the wake of Sept. 11, French hosted a roundtable in Phoenix that brought together business leaders and various associations to discuss the importance of diversity to business success.

Since the Diversity Leadership Alliance was officially formed in 2003, it has grown rapidly, and now hosts a wide range of events, including monthly workshops with average attendance rates of more than 100 people, quarterly executive and legal forums, an annual diversity conference, and a youth council.

French says she started the nonprofit Diversity Leadership Alliance and her business, Global Diversity Consulting, to dispel the many myths surrounding diversity efforts.

Diversity’s progress has been slowed, French says, because the creation of the Equal Employment Opportunity Commission (EEOC) and affirmative action programs have led many employers to view diversity as a numbers game.

This misconception created resistance to embracing diversity, as many people and companies thought hiring minorities meant not hiring the most qualified candidate, she says.

But French, who is founder and co-chair of the Diversity Leadership Alliance, argues that diversity is really about embracing the gifts and talents of every individual, and putting those strengths to work for a company.

“EEOC and affirmative action are counting people; diversity and inclusion (are) making people count,” French says.

The only way to combat misunderstandings about diversity, French says, is to create dialogue, which is the goal of the Diversity Leadership Alliance and the forums it hosts. French says she wants this dialogue to lead to major changes in the way people think about diversity.

While promoting the benefits of diversity, French says she is often asked, “Why do I have to change? I’ve been successful so far.”

Her response?

“We all need to change, myself included,” she says. “We all need to change because what brought us here today, all the skill and talent and good work we’ve done yesterday to bring us here today, will not be enough to take us where we need to be tomorrow.”

French’s commitment to diversity extends to her own livelihood. In 2007, she left her job as senior global diversity leader at American Express to spend more time with her four grandsons. However, she continues to champion diversity through Global Diversity Consulting.

French has written and self-published two books, “The Lotus Path” and “How to Get Along With Other People Without Hiring a Hit Man.”

“The Lotus Path,” which will be available in March, details French’s life, her success and how she learned transformational leadership during her world travels.

French co-wrote “How to Get Along With Other People Without Hiring a Hit Man” with Rico Burton. The book, which was published in October, features 10 stories about workplace challenges, and includes activities to help readers find solutions to each situation.

With her books, her life and her work, French is trying to clear away the fallacies about diversity, and one day hopes, to quote Martin Luther King Jr., that her “grandsons (will) be judged by the content of their character, and not by the color of their skin.”

Until then, French will continue pushing for more and more dialogue about diversity.

“Diversity … is about people. It’s about you. It’s about me,” French says. “Let’s clear it once and for all, because as long as we have a misconception, a misunderstanding, the work will never be done.”

Arizona Business Magazine Nov/Dec 2010

Diversity Leadership Alliance Winners - AZ Business Magazine Nov/Dec 2010

Diversity Leadership Alliance Winners

Govt./Nonprofit Category Winner Yuma Regional Medical CenterGovt./Nonprofit Category Winner
Yuma Regional Medical Center

Yuma Regional Medical Center (YRMC) is proud of having a diverse work force that represents the community and the patients it serves. That work force diversity includes ethnicity, cultural background, gender, age, economic means, physical and mental ability, family settings, educational levels, and religious beliefs.

By valuing diversity, YRMC seeks to achieve an environment where the total spectrum of differences is valued and integrated into every aspect of the hospital. YRMC classifies its various dimensions of diversity as human, cultural and systemic. Human diversity refers to the physical characteristics or life experience of an individual. Cultural diversity is characterized by fundamental beliefs, attitudes, assumptions, values and personal characteristics. System diversity is characterized by the integration of organizational structures and management operating systems where differences are involved or implicit.

YRMC strives not only for diversity within its walls, but also outside of them. The YRMC Community Outreach Team allows employees to connect with Yuma’s many diverse cultures. The program focuses on meeting the needs of winter visitors, migrant workers, military personnel, as well as the elderly, uninsured and Spanish-speaking population.

Diversity Champion Lee A. Barnett: Director of Technology, American ExpressDiversity Champion
Lee A. Barnett: Director of Technology, American Express

Lee A. Barnett’s dedication to diversity and Valley youth already is bearing fruit.

Barnett, the director of technology at American Express’ Valley operations, has been a member of the Diversity Leadership Alliance’s (DLA) board since 2007. He has been key in developing the DLA Youth Council, which assists high school sophomores, juniors and seniors to transition to higher education and work force readiness. The council also develops leadership skills among youth that are aimed at building an inclusive community.

Under Barnett’s guidance, the three-year-old DLA Youth Council has grown from 24 students to 120 students participating in monthly workshops. At this year’s DLA Youth Council ceremony, 12 students from several Phoenix-area high schools received recognition. They in turn expressed their gratitude for the confidence, support, and diversity awareness and training that DLA provides.

One student stated: “I went into the DLA being someone who preferred their own ideas and thoughts over others. I am extremely proud to say I am leaving the DLA being a person who now respects, accepts and is grateful for different ideas.”

Barnett’s dedication to the Youth Council is opening new horizons for many diverse high school students throughout the Valley.

Small Co. Category Winner Northern Arizona Regional Behavioral Health Authority Inc.Small Co. Category Winner
Northern Arizona Regional
Behavioral Health Authority Inc.

Serving 10 Native American tribes, the Northern Arizona Regional Behavioral Health Authority (NARBHA) has made a commitment to upholding diversity and cultural sensitivity in order to provide high-quality care to its patients.

NARBHA is the Regional Behavioral Health Authority for Coconino, Navajo, Yavapai, Apache and Mohave counties, serving more than 700,000 people throughout 62,000 square miles of Northern Arizona.

In 2001, NARBHA established a cultural competency plan as required by the Arizona Department of Health. The following year, NARBHA developed the Cultural Awareness and Diversity Committee, which uses community input to annually update the cultural competency plan. In 2003, the co-chair of the committee saw a gap in communications between NARBHA and the 10 tribes NARBHA serves. To improve coordination with the tribes, NARBHA created a new position called the Tribal Liaison.

The development of the cultural diversity committee, the cultural diversity plan, and employees devoted to cultural inclusion has improved NARBHA’s ability to provide services to diverse populations. The initiative has broken down barriers to tribal members’ access to care, created culturally responsive behavioral health programs in treatment clinics, and increased awareness statewide of the unique needs of diverse, rural communities. In addition, NARBHA focuses its hiring efforts on developing a work force that reflects the diversity and language needs of the community.

Large Co. Category Winner Cox CommunicationsLarge Co. Category Winner
Cox Communications

The Spanish word for “leader” is “lider.” It’s no surprise that LIDER is the name of Cox Arizona’s 12-week Leadership Development Program. The program was created to introduce the company’s frontline bilingual (Spanish/English) employees to leadership, and to develop future leaders that will help Cox grow its Hispanic customer base.

LIDER provides education on the leadership roles at Cox and Cox’s core competencies (influencing others, producing results, communication skills). The program is structured to address the uniqueness of Hispanic culture, and the combination of multiple cultures and languages in a business environment.

The four-year-old LIDER program is facilitated by the Cox Internacional leadership team and was developed through a collaborative effort of the company’s Arizona care, field training and human resources. Candidates are provided extensive development plans, participate in presentations by the local executive leadership team, review core leadership competencies, book reviews, and are given a final project that is presented in front of the Cox Arizona executive team. The program is cross-departmental and has seen a 33 percent promotion rate.

Development programs such as LIDER help to grow Cox’s diverse employee base. The company’s leadership team, from executives, VPs, directors and managers, participates and actively promotes self-development and growth.

Large Co. Category Winner Veolia TransportationLarge Co. Category Winner
Veolia Transportation

Veolia Transportation is committed to creating an environment of diversity and inclusion. Through its Diversity and Inclusion Program, Veolia’s overall human resource strategy includes recruiting, hiring, promoting, engaging and retaining the company’s diverse talent.

Veolia’s Diversity and Inclusion Program began with revamping the entire recruiting process to ensure Veolia became an Equal Opportunity Employer. Once on board, Veolia provides an employee orientation program that includes diversity training. In addition, all existing employees completed a diversity training class in 2008. Awareness and education regarding diversity have continued with the production of a monthly diversity newsletter. Also, an internal Mentoring Program was created to provide opportunities for new hires to be partnered with seasoned employees.

The need for a culture change was imminent at Veolia Transportation of Tempe. Due to a poorly run operation, new leadership was sought. A new, diverse team was brought together in 2007 to help transform the performance of the operation and improve the overall morale of employees. The diversity training initiative helped “create an environment of respect for our differences and inclusion.” Soon, Veolia’s slogan of “Together We CARE” became real. CARE stands for commitment, accountability, respect and empowerment. These are four values that are consistent with Veolia’s everyday operations in Tempe.

Arizona Business Magazine Nov/Dec 2010

Jerry Colangelo discusses Arizona's economic future and more. - AZ Business Magazine Nov/Dec 2010

CEO Series: Jerry Colangelo

Local businessman Jerry Colangelo talks basketball, Arizona Commerce Authority, the recession and more.

Jerry Colangelo
Title: Principal Partner
Company: JDM Partners

Did you always aspire to be in business or was it circumstances that put you on this path?
I transferred universities for basketball reasons, originally. I went to (University of) Kansas for a semester to play with Wilt Chamberlain. When he transferred — when he quit school — I transferred to (University of) Illinois. I had taken business courses in Kansas and when I transferred I brought those credits with me. But then I went into education. I thought I would teach and coach. But I had some business background and I was always a little bit of an entrepreneur, in terms of trying to make a dollar as a young kid, little businesses, etc. So it all kind of came together and I ended up being in the sports business, which means that I was being prepared all along.

How would describe the Valley’s business environment for entrepreneurs?
I think it is a good place, but it has evolved. I came to the Valley 40-plus years ago, when things were kind of wide open and there were many more opportunities, at least from my perspective. You had the ability to get things done because it was still a small town, to some degree. I’ve seen it quintuple in size, if you will, and we’ve had our ups and our downs in the Valley, but we’re trying to re-identify who we are and what our future holds. But there will always be room for entrepreneurs. There’s no question about that. I still believe in the Valley and the business climate, and it’s going to get better as our economy gets better, so there’s room.

How will the new Arizona Commerce Authority help the state’s economy?
I think the Commerce Authority is coming at exactly the right time. We have the opportunity to re-do how we do business in this state. It’s very important to retain the businesses that we have and it’s very competitive out there. The states are competing for big business and small business. We need to create a climate that is truly conducive for small and big business to come to Arizona. I think that with the people, the manpower that we will have on this authority, we have a chance to make that happen.

I’ve been a little outspoken about the fact that we need the Legislature to help with the funding — there’s no question about that — but at that point they need the business community to conduct the business of commerce. That’s what they know best. And if we can kind of separate that, we have a great opportunity to go out and be competitive. We’re going to need some things from the Legislature. Incentives — that seems to be a dirty word to some people, but it’s reality. That’s what’s happening in other states. That’s why they’ve had so much success. We have the models to look at.

For me, coming from the world of sports and every day you’re competing, it’s another game, it’s going for another win. This is a classic example of taking something that needed to be restructured, a little like my USA Basketball experience of late, when I took over the program and it was back on its heels. Today, we’re the defending gold medalists in every category, men’s and women’s, every age bracket. We have a chance with the Commerce Authority to basically do the same thing. We need to win a gold medal. We need to go out and compete with all the other states, because we have a lot to offer in this state. We just need some incentives. We need to look people eyeball-to-eyeball and sell them on why it’s important to come here, why they will enjoy not just the quality of life. We need to improve our education, we need to make it a better community in which it is conducive to do business here. If you get people jumping on the bandwagon, we have a chance.

How did the recession affect the sports industry in general and in the Valley in particular?

The recession has hit everyone and every segment of the marketplace. It’s interesting; when things are really bad economically, people still want to be entertained. … Vicariously, people follow sports teams because they once played, they have some affiliation, they love the association when their teams are winning. When teams are losing, that’s when they jump off the bandwagon. … We took a hit here in the Valley big time. Because we have so much emphasis on the construction industry, we were hit harder than other parts of the country — in the Southwest. No. 2, we are saturated right now with sports teams — no question about that. Everyone was affected. If we had continued with our growth, because we were on an incredible growth curve, we would have grown into maturity with all of our sports teams. What we have gone through have been some real challenges. But the good news is that the sports franchises have adjusted. They’ve had to adjust their policies, their attitudes toward discounts, etc. And that’s one of the things I’ve noticed in sports in the last two years is that they’ve made adjustments to deal with what’s taken place with the recession.

You are still involved in sports, but you’ve also moved on to real estate development. Some would say that’s a risky move. How do you respond to that?
People say when you make money in real estate is when you buy appropriately. There are a lot of deals out there to buy in — they say cash is king. Well, there are a lot of financial institutions sitting on a lot of cash, but they’re not really willing to let the consumer have that cash. So everyone is very hesitant right now. There is great opportunity in real estate. You have to be more specific about residential, commercial. My partners and I are involved in some iconic properties: the (Arizona Biltmore Golf & Country Club), the (Wigwam Golf Resort & Spa). In taking that step with distressed properties, we were able to take these properties out of bankruptcy. We believe we made a good buy at the time. We are making an investment in those properties, because we believe in the future. We believe things will get better over a period of time and that the real estate marketplace will continue to get better over a period of time. We’re sitting on 37,000 acres of property on the west side of Phoenix that have the ability and the approval to build a city of over 300,000 people. But this isn’t the time to start that project — that’s in Buckeye, Ariz. Do I think someday that will happen? Maybe in some way, shape or form; maybe not the way it was visualized five years ago, but are people going to continue to come here? I believe so. But back to the Commerce Authority; we have to bring jobs to Arizona. So by being creative and being aggressive going out to bring companies here — with high-paying jobs, not just service jobs — then we will continue with the growth pattern, because we have so many wonderful things to offer in terms of quality of life out here in the Southwest.

What advice do you have for entrepreneurs who are ready to take their companies to the next level?
Don’t be afraid to fail. … You have to take calculated risks. You have to be willing to step out on that board knowing you might get pushed, fall off. The worst thing that could happen is you do — you get up and you start over again. One of the things that has probably marked my career is that I started with nothing and I was never afraid to go back to nothing, but I was going to enjoy the ride. And so as it relates to my mix of experiences. Being competitive as an athlete prepared me for the business world, which was another competition. No one has batted 1,000 percent. Hall of Famers hit .300 — that’s only three out of 10. So why is it any different in business? You’re going to make mistakes, you’re going to learn from your mistakes. You can’t be afraid to fail, you have to be willing to take that kind of calculated risk. I’ve seen so many people, again in my lifetime, who have complained and whined about never getting an opportunity. And I would say to them, “Opportunity walked by you three or four times, but you never recognized it, because you’re so busy whining.” Get out there, don’t be afraid to compete and believe in yourself.

    Vital Stats




  • Became general manager of the new NBA franchise Phoenix Suns in 1968
  • Coached the Suns in the 1969-1970 and 1972-1973 seasons
  • Purchased the Suns for $44.5 million in 1987
  • Founder and owner of the Arena Football League’s Arizona Rattlers from 1992-2005
  • Played a key part in moving the NHL’s Winnipeg Jets to Arizona in 1996
  • Launched the WNBA’s Phoenix Mercury in 1997
  • Launched the MLB Arizona Diamondbacks in 1998
  • Served as chairman and CEO of the 2001 World Champion Diamondbacks
  • Chairman of the NBA’s Board of Governors from 2001-2005
  • Sold the Suns, Mercury and Rattlers to an investment group headed by Robert Sarver in 2004
  • Sold his controlling interest in the Diamondbacks to a group of investors in 2004
  • Elected to the Basketball Hall of Fame in 2004
  • March 26, 2004 proclaimed Jerry Colangelo Day in Phoenix
  • Named director of USA Basketball in 2005
  • Received the Spirit of Caring award in 2005 from the Valley of the Sun United Way
  • Inducted into the Suns’ Ring of Honor in 2007

Arizona Business Magazine Nov/Dec 2010

Kimpton Palomar Hotel at CityScape - AZRE November/December 2010

Hospitality: Kimpton Palomar at CityScape


KIMPTON PALOMAR AT CITYSCAPE

Developer: RED Development
Architect: Callison
Location: 2 E. Jefferson St., Phoenix
Size: 225,000 SF

The $80M, 240-room boutique 4-star hotel is scheduled for completion 4Q 2011. The hotel will feature a 3rd level pool deck overlooking US Airways Center, and will serve as an integrated component to the overall CityScape project in Downtown Phoenix.

AZRE November/December 2010
BOMA Greater Phoenix

BOMA Greater Phoenix: TOBY Awards 2010

This year’s BOMA Greater Phoenix TOBY awards 2010 were presented Sept. 10. BOMA Greater Phoenix would like to congratulate the local award winners, and the Collier Center (a 2009 winner), which garnered a 2010 Inernational TOBY award in the Earth Category.

BOMA Greater Phoenix TOBY Awards

The Scottsdale Forum: 100,000 – 249,999 SF

Owned By: ING Clarion Partners

Managed By: KYSA Beringer, Real Estate Manager, CB Richard Ellis


BOMA Greater PhoenixPortales Corporate Center Phase I: 250,000 – 499,999 SF

Owned By: Principal Real Estate Investors

Managed By: Julie Schulze, Property Manager/ Leasing Consultant, Forum Property Services


BOMA Greater PhoenixMesquite Corporate Center: 100,000 SF

Owned By: Mesquite Partners I. A Division of DPC Development Company

Managed By: Marie Dunn, RPA, Real Estate Manager, CB Richard Ellis


BOMA Greater Phoenix ADOA: Government

Owned By: Capitol Mall II

Managed By: Shannon Dutton, RPA, Real Estate Manager, CB Richard Ellis


BOMA Greater PhoenixCentral Park Square: Renovated

Owned By: Arizona Central Credit Union

Managed By: Michelle Bachand-Gill, LEED AP, Real Estate Manager, CB Richard Ellis


BOMA Greater PhoenixSan Tan Corporate Center I & II: Suburban Office Low-Rise

Owned By: Wells reit II San Tan Corporate Center I & II

Managed By: Maricela Nunez, Real Estate Manager, CB Richard Ellis


BOMA Greater PhoenixEsplanade III: Earth

Owned By: AEW Capital Managment

Managed By: Heather Sikita, Real Estate Manager, CB Richard Ellis


BOMA Greater PhoenixThe Phoenix Plaza: 500,000 – 1MSF

Owned By: GE Asset Managment

Managed By: Diana Rivers, CPM LEED AP, O+M, Senior Real Estate Manager, CB Richard Ellis


BOMA Greater PhoenixHohokam Towers: Corporate

Owned By: Muller Hohokam

Managed By: Tiffany Lauchlan, CPM, Senior Property Manager,  The Muller Company


 AZRE Magazine November/December 2010

Construction Project News - AZRE Magazine November/December 2010

Construction: Project News, November/December 2010

Construction project news around the state in November/December 2010:

D.L. Withers General Contractor at McCormick Railroad Park

Construction of a 10,000 SF, $2.1M exhibit building at McCormick Stillman Railroad Park on the SEC of Indian Bend and Scottsdale roads is nearing completion. The new building is adjacent to the parking lot and within close proximity to historic depots and restored railroad cars. Building materials include exposed rock and steel structural elements. Also, a recycled decking material similar to wood has been added to create a platform for the building. The project is designed to meet City of Scottsdale green standards for LEED Gold certification. D.L. Withers Construction is the general contractor; Holly Street Studio is the architect.

Pinal Power to Build ‘Green’ Electricity Facility

Pinal Power plans to build a facility in the City of Maricopa that will generate 30 megawatts of electric power fueled by landscape and agricultural waste. To construct the facility, Pinal Power will make a $92M capital investment, creating up to 120 construction jobs from mid-2011 through 2012. The facility will be located along the Maricopa-Casa Grande Highway, to the west of the existing Pinal Energy Ethanol Plant. Western Bio-Energy is the developer of the project, which is fully capitalized with an estimated timeline that includes permitting and development planning through the end of 2010.

Sundt, DWL Complete Phoenix-Mesa Gateway Airport Expansion

Phase I of terminal expansion at Phoenix-Mesa Gateway Airport was completed in November, with Sundt Construction as general contractor and DWL the architect. The $8.9M, 30,000 SF project included expanding the airport’s passenger terminal by an additional two gates; adding commercial space (one gift shop and two cafes); relocating rental car counters and baggage claim; and expanding the post-security outdoor courtyard.

Hensel Phelps/ZGF Awarded Arizona Cancer Center Project

Design-build services were awarded to Hensel Phelps Construction Co. and ZGF Architects for the 249,000 SF Arizona Cancer Center on the University of Arizona’s Phoenix Biomedical Campus. The Arizona Cancer Center will house medical offices and cancer treatment facilities. Hensel Phelps also was awarded the Military Medical Emergency Simulation Training Suites tenant improvement at the Scottsdale Healthcare Osborn Medical Campus.

Weitz Co. Updates Wigwam Golf Resort & Spa

The Wigwam Golf Resort & Spa in Phoenix is undergoing a multimillion dollar facelift. JDM Partners, led by sports executive Jerry Colangelo, purchased the historic resort in December. The project is slated for completion by late 2010. Project highlights include a new entryway; a new main pool with separate adult and kids zones, two waterslides and play features; an outdoor plaza featuring dining and entertainment areas; an indoor/outdoor bar; and new event venues. Architect is Peterson Architecture and Associates; contractor is the Weitz Co. Jim Smith led the design team as a consultant.

$1.5M Construction Fix Up For Tucson Retail Center

Bear Canyon Shopping Center (above) in Tucson is undergoing a $1.5M exterior remodel project, the first renovation since it was built in 1983, at the NWC of Tanque Verde Rd. and Catalina Highway. The renovation includes a redesign of the property’s façade and interior improvements for a new Goodwill Super Store, which leased 14,765 SF within the center. General contractor is Division II Construction; architectural firms are SBBL and Architectural Design Group. Completion: 4Q 2010.

Spring Training Facility Opening in Three Months

Construction of the new spring training facility for the Arizona Diamondbacks and Colorado Rockies is rolling along, as more than 97,000 SF of sod was installed at the Salt River Fields at Talking Stick. Opening date of the 140-acre site is scheduled for Feb. 1, 2011. The facility is at the Loop 101 and Indian Bend Rd. HKS Sports & Entertainment Group is the designer and Mortenson Construction is the general contractor. Subcontractors include Parsons Electric, Tri-City Mechanical, Trainor Glass, T-Pac, Valley Crest Landscaping and Space Con.

Homeland Security Building in Sells Remodeled, Expanded to 16,701 SF

Davis Enterprises and Indianola Partners have been awarded the General Services Administration lease for the Department of Homeland Security building in Sells. The existing 5,301 SF building is being remodeled and expanded to 16,701 SF for the U.S. Immigration and Customs Enforcement. Davis Enterprises negotiated a long-term ground lease with the Tohono O’odham Nation to develop the office building. The project will be completed in early 2011.

McShane Completing SCF Arizona TI Project

McShane Construction Co. is completing an 18,000 SF office and lobby improvement (above) of SCF Arizona’s existing office space and building common areas. The project, at 3030 N. 3rd St., Phoenix, includes updates to the first-floor office suite. The new Class A tenant space will include five private offices, two conference rooms, open work stations, four storage rooms, a kitchen/break room area, a mail distribution area, one mother’s room, one resting room, and a dedicated lobby/reception space with curved walls and floating panels. McShane is also renovating the building’s 4-story atrium lobby. Work is expected to be complete by 4Q 2010. MRT Design provided architectural services.

CONSTRUCTION P & Z

City of Phoenix

The City of Phoenix Development Services Department began money-saving incentives to promote “green” construction in residential and commercial buildings on Oct. 1. The Green Building Incentives Program, funded by a grant from the U.S. Department of Energy, offers reduced permit fees applicable to small- and large-scale improvement projects for the installation of energy efficient equipment, including Energy Star water heaters, solar panels, insulation, rainwater harvesting, HVAC, and more. A portion of the grant will fund the creation of a voluntary Green Building Code to be completed late 2011. For more information, visit phoenix.gov/devserv or call (602) 262-7811.

Maricopa County

Maricopa County has been in the public process of updating some of the 2009 building codes and fee schedule. These updates took effect Oct. 1. For more information, contact Tom Ewers, Head Building Official at (602) 506-7145.

AZRE Magazine November/December 2010

 

Health Care Reform in Arizona - AZ Business Magazine Nov/Dec 2010

Business And Community Leaders Are Trying To Figure Out What Health Care Reform Will Mean In Arizona

For government and business, providers and patients, the U.S. health care reform legislation promises a new world of costs and care.

Most individuals without insurance will be able to get it. Those who have insurance already probably will have to pay more for it. Hospitals, doctors and others in the front lines of health care will begin to change long-established ways of doing business. State governments and many businesses, already battered by recession, will face new costs and possibly some benefits.

But beyond these generalizations, little is certain about what health care reform will mean in Arizona and across the country. The bill is vague in many areas and leaves important details of implementation to be determined by federal regulators and other officials in the weeks and months ahead.

“Quite frankly, we won’t know the financial impacts until we move through the process and see what the federal government and insurance companies do,” says Donna Davis, chief executive officer of the Arizona Small Business Association (ASBA).

Barry Broome, president and chief executive officer of the Greater Phoenix Economic Council (GPEC), says it is too early know what the bill will mean.

“It sounds very good to be able to cover the uninsured, but what the costs are and how they are going to be distributed are still not clear,” he says.

Marjorie Baldwin, director of the School of Health Management and Policy and assistant dean at Arizona State University’s W. P. Carey School of Business, says it is important to note that the law’s primary purpose is to cover the uninsured.

“This bill is about access,” Baldwin says. “It’s designed to cover the uninsured. There is much less in it about quality of care and little about cost controls.”

On what the price tag for health care reform will be, Baldwin says, “The one safe prediction is that it is going to cost much more than anticipated.”

Hospitals and doctors
Whether the health care overhaul is ultimately deemed a success will be determined to a large extent by what happens inside the nation’s hospitals, clinics and doctors’ offices.

Peter Pavarini, a health care lawyer for Squire, Sanders and Dempsey and an adviser to health care organizations, believes hospitals are actually well-positioned to adapt to the new law.

“Hospitals have been anticipating something happening for some time,” Pavarini says. “Hospitals have the resources to prepare better than some of the other players in the health care system.”

Several provisions in the law are expected to lead to a dramatic shift in the way hospitals are paid by insurance. Under the existing system, providers receive set rates for specific medical procedures. The new law moves toward a system in which hospitals receive a set amount for treating an overall condition or a so-called “bundled payment.” This shift is expected to require more detailed treatment plans, coordinated care and closer cooperation among hospitals and physicians.

“With the bundled payments, you have to have a more integrated approach and an approach that aligns physicians and hospitals,” says Suzanne Pfister, vice president of external affairs at St. Joseph’s Hospital and Medical Center in Phoenix.

The hospital already has been moving in this direction, according to Pfister. St. Joseph’s has forged a series of partnerships with area health care organizations, including outpatient and short-stay providers United Surgical Partners and SimonMed Imaging
.
“We are continuing to look at moving from acute care to a continuum of care,” Pfister says.

Pavarini believes the new payment systems for Medicaid and Medicare will bring big changes to care at hospitals. When the system is in place, hospitals will get a set payment for delivering all of the care a patient receives from 72 hours before admission to 30 days after discharge, he notes.

“That’s a whole different model from what we have now,” Pavarini says. “This means it’s not good enough just to get the patient in and out of the hospital. It means testing can’t be duplicative. And it means patients better be ready for discharge when they’re released.”

Pavarini says doctors and hospitals will need to cooperate more closely as the law is implemented. He sees hospitals forging formal alliances with physician groups and appointing more practicing physicians to their boards of directors.
A more basic concern for hospitals is how much they will be paid. Because expansion of Medicaid is a key feature of the law, hospitals are concerned about long-term revenue.

“Payments are going to shift more to the level of Medicaid, and Medicaid has not been a particularly good payer,” Pfister says.

Officials at Phoenix-based Banner Health, one of the largest nonprofit health care systems in the country, are still examining the legislation to assess its consequences.

“This reform is primarily about health insurance, not health care reform,” the organization said in a statement. “It will result in expanded AHCCCS (Medicaid) coverage in Arizona and access to insurance, but the need remains to address reducing the cost of health care.”

The bill includes a number of provisions that will increase the role of primary-care physicians. Medicaid fees will go up for primary-care doctors, who also will be eligible for bonuses from Medicare.

St. Joseph’s is concerned about being able to find enough physicians as health care reform is implemented in the coming years, according to Pfister.

“Arizona has fewer physicians per capita than the national average, so we face that already. Arizona does not have enough primary-care physicians and even some specialists,” she says.

The larger hospitals that have formal ties to physicians and other providers probably will fare best under health care reform, according to Pavarini. But he believes smaller, more isolated hospitals will struggle and some will close.

“Arizona has a number of smaller hospitals in less populated areas,” he says. “I think the outlying hospitals in rural communities could have difficulty.”

Businesses
While all businesses will be affected by the health care reform law, some will feel it more than others. Probably least affected will be firms that already provide health insurance now and have a pool of employees large enough to allow the companies to self-insure.

“For most large businesses, fundamentally there’s not a lot of change,” says Keith Maio, president and chief executive officer of National Bank of Arizona. “For us, we’ll have to be a little more paperwork conscious.”

ASU’s Baldwin says the principal effect on large employers will be slightly higher expenses, as they absorb some of the cost of the system’s expanded coverage.

“For larger employers, the law is not going to mean a big difference, but they are going to see their costs go up,” she says.

Smaller businesses though will face new uncertainties, and, for some, significant new costs.

“I would say that there is a cloud of concern generally for small businesses,” says Maio, whose bank has many small business customers. “People who have been through the recession and are still slugging it out have learned to survive. But they still have trouble seeing how they can get back to where they were . That’s why something like the health care bill can have such an impact.”

The law offers a complex mix of incentives and penalties designed to spur employers to offer health insurance. In 2014, employers with 50 or more workers who do not provide coverage will face penalties of $2,000 or $3,000 per employee. Some employers who provide insurance and have fewer than 50 workers will be eligible for tax credits.

“In a sense there is both a carrot and a stick,” says Bradford Kirkman-Liff, professor in the School of Health Management and Policy at W. P Carey. “The idea is to create a very strong incentive to provide insurance.”

The tax credits could offset as much as half of the insurance costs for some employers, Kirkman-Liff notes.

“Arizona has a high number of small employers. Many of them don’t provide health insurance, but some do. This would give them a reason not to drop it,” he says.

The law also instructs states to establish insurance exchanges, where small employers and individuals can purchase policies from insurance companies. The exchanges are designed to bring down the cost of insurance by combining groups of buyers into large pools.

But even with government subsidies and insurance exchanges, some businesses will find the burden too large, according Maio.

“The greatest impact will be on those that employ entry-level employees,” he says. “Arizona has a lot of lower-wage businesses who won’t be able to afford to provide insurance. I think some will opt to pay the fine. Then what have you accomplished?”

Another problem that Maio sees is the 50-employee threshold for the coverage requirement. Employers with fewer than 50 can escape penalties for not providing insurance.

“Have you given them a disincentive to adding people?” he asks.

Davis at ASBA says most business owners are focused on short-term challenges and do not have a clear picture of how the law will affect them.

“For some small businesses who fit the prescribed requirements, it will help offset some of their costs,” Davis says. “For others, it simply won’t.”

Arizona Commerce Authority - AZRE Magazine November/December 2010

Arizona Commerce Authority: Team Effort in Arizona CRE

If there’s one person who can help give Arizona the home-field advantage when it comes to attracting new businesses, new jobs and making the state more competitive in the global market, it’s Jerry Colangelo, the vice chairman of the Arizona Commerce Authority.

Perhaps that’s why Gov. Jan Brewer picked the Valley businessman as vice chairman of the newly formed Arizona Commerce Authority, a private sector board that will replace the Arizona Department of Commerce. The 35-member board includes a diverse group of business and educational leaders from across the state.

No matter what you’re in, it takes teams and people to win,” Colangelo said. “It’s true in every walk of life. Look at the disconnect that has existed in our state for such a long time, with the Legislature, with the business community, the lack of a game plan. Everyone has to be on the same page. And so the good news is this: There’s only one way to go. There is plenty of space here for us to be very, very successful.”

There definitely is room to grow when it comes to business attraction in Arizona.
According to Department of Commerce statistics, 47 companies located or expanded in Arizona in 2007, bringing a capital investment of $1.6B, almost 10,000 new jobs and an annual payroll of $483M. Then the recession hit and in just two years those figures took a nose dive: 24 companies located or expanded in Arizona with a capital investment of $255M, 2,649 jobs and a $124.6M payroll.

“When I became governor, I promised to get Arizona back on track by creating quality jobs, attracting high-growth industries, and advancing our competitive position in the global economy,” Brewer said. “With this board, I have now delivered a model to advance Arizona.”

Arizona Commerce Authority: Addressing the Industry’s Needs

How that model will advance Arizona is a question those in commercial real estate are asking. To its credit, the Arizona Commerce Authority includes several board members with direct business ties to the industry.

They are: Drew Brown, chairman of the board, DMB Associates; Peter Herder, chairman of the board and CEO, Herder Commercial Development; Mike Ingram, CEO and president, El Dorado Holdings; Doug Pruitt, chairman and CEO, Sundt Construction; and Mo Stein, principal and senior vice president, HKS Architects.

How do those in the industry envision an entity such as the Arizona Commerce Authority boosting a sagging commercial real estate market in Arizona?

“I look for the Arizona Commerce Authority to create a business model for all aspects of development in the state,” Stein said. “The authority will allow leverage of both public and private strengths that go beyond individual projects to opportunities that impact large segments of our communities and industries throughout the state.”

Mike Haenel, executive vice president, Industrial Division at Cassidy Turley BRE Commercial, noted: “I would like the Arizona Commerce Authority to communicate to the State Legislature exactly what it would take to relocate a company to Arizona. Thanks to a sophisticated local commercial real estate development industry, we have well-located and functional real estate available. Given the current economic conditions, pricing is extremely attractive, which translates into a perfect time to rent and or buy real estate in Arizona. The Arizona Commerce Authority needs to figure out what our state government should do to be competitive in attracting and retaining companies.”

Jim Gibson, senior associate in real estate at Squire, Sanders & Dempsey adds: “There has always been a long-standing partnership between economic development and the commercial real estate industry. Because of its role attracting new businesses to the state, I suspect that the Arizona Commerce Authority will be a tremendous resource for lead generation to brokers, developers and others in the industry. In addition, because of the Arizona Commerce Authority’s make-up of leaders in the private sector, it seems well-positioned by having both the business savvy to understand the wants and needs of companies looking to expand or relocate to Arizona, as well as having established relationships in the real estate industry to help each company assemble the right team depending on its particular real estate needs.”

Brewer made sure the new Arizona Commerce Authority is a statewide endeavor. While most board members are from the Metro Phoenix area, there also are four board members from Tucson, two from Flagstaff, and one each from Prescott and Yuma.

By creating a more competitive landscape and making economic development a higher priority, commercial real estate opportunities and transactions will result,” said Joe Snell, president and CEO of Tucson Regional Economic Opportunities (TREO). “The ability for the authority to assist groups like TREO in attracting and expanding primary jobs will result in significantly more commercial opportunities downstream.”

Listening to the Industry’s Concerns

While those involved are excited over the prospects of what the Arizona Commerce Authority may be able to achieve, there also is guarded optimism. Mark Singerman, regional director of Rockefeller Group Development Corp., said that just to stay even with what most other states offer, Arizona needs to become more competitive in attracting businesses to relocate here. He cites SB 1403, a bill giving special tax breaks and incentives to the solar energy industry.

Within several months of that incentive for renewable energy companies becoming law, there were at least a dozen solar companies looking to locate here,” Singerman said. “This type of incentive program needs to be expanded to all desirable industries.”

Up until 2006, Singerman said, Arizona became complacent about attracting residents and businesses. By virtue of being in close proximity to high-cost California, the state enjoyed steady growth with little effort.

“We now have to up our game to stay even with other states,” Singerman said. “If we have competitive economic incentive programs similar to what other states offer, our total package will be hard to beat when companies do their comparisons. But we are not there yet.”

Added Tim Lawless, president of NAIOP-AZ, adds: “While strategically targeting specific industry sectors like aerospace in the hopes of further diversifying our state’s economy is laudable, it is very unclear what the Arizona Commerce Authority can or will do to assist the vast number of firms that are already in the state, especially with their very limited budget. We need to keep in mind that we have more than 350,000 firms in our state and we need policies that will create an environment for them to survive and add jobs.

This can only happen should the Commerce Authority advocate for broad-based tax reform, rather than exclusively relying on esoteric tax breaks that create winners and losers,” Lawless continued. “Cake and ice cream tax breaks for industries like solar are fine, but only after a more substantial and well-balanced economic development diet is put on the table for all firms.”

For the Arizona Commerce Authority to make the state more competitive in business attraction, Lawless said Arizona needs to lower overall commercial property tax burdens, which are among the highest in the U.S.; create a significant deal-closing fund (non-tax benefit related) to land large employers that leverage the highest paying jobs; and lower corporate income tax rates that would put the state in a better position to compete with other Western states.

Arizona’s political climate could be another stumbling block in attracting new businesses, said Marty Alvarez Sr., CEO of Sun Eagle Corp.

“Part of the problem is the perception throughout the country that Arizona is a racist state with no upside for their companies to move here,” Alvarez said. “The Hispanic business community needs to be part of the marketing effort to dissuade the thought that our state is in political turmoil. This is the time to bring national and international firms to Arizona.
The collaboration led by the ACA needs political, social and business direction from the Hispanic business community in order to create a positive atmosphere for incoming companies,” he added. “The idea and implementation of the ACA is not only good but is a necessary solution for the future economic well being of our state. The leaders chosen to enact this organization and jumpstart the dialogue must be a public-private partnership.”

AZRE Magazine November/December 2010

Village at Oasis Park - AZRE November/December 2010

Senior Living: The Village at Oasis Park, Phase I


THE VILLAGE AT OASIS PARK, PHASE I

Developer: The Village at Oasis Park, LLC
General contractor: Farnsworth Construction Company
Architect: Saemisch + Di Bella Architects
Location: 10617 E. Oasis Dr., Mesa
Size: 7,255 SF community building, 11,538 SF residential building

The $4.2M project will provide independent and supportive housing for adults with disabilities and their aging parents. Completion is 2Q 2011.

AZRE November/December 2010
South Mountain Community College Library - AZRE November/December 2010

Education: South Mountain Community College Library And Learning Center


SOUTH MOUNTAIN COMMUNITY COLLEGE LIBRARY AND LEARNING CENTER

Developer: Maricopa County Community College District and City of Phoenix
General contractor: Haydon Building Corp.
Architect: Richard + Bauer
Location: 7050 S. 24th St., Phoenix
Size: 51,000 SF library; 18,000 SF learning center remodel

The library is the focal point of a $23.2M project that includes an 18,000 SF remodel of the existing Learning Resource Center, and a 1,200-space parking lot addition. The library will house a computer lab, community room and teen center. Completion is expected by 3Q 2012.

AZRE November/December 2010
Madison Traditonal Academy - AZRE November/December 2010

Education: Madison Traditional Academy


MADISON TRADITIONAL ACADEMY

Developer: Madison Elementary School District 38
General contractor: McCarthy Building Companies
Architect: Orcutt Winslow
Location: SWC 10th St. and Maryland, Phoenix
Size: 57,000 SF

The $8.5M project includes 2-story classroom buildings for K-8, a single-story administration area, media center, multi-purpose room with kitchen, and a gymnasium. Completion is expected by 3Q 2011.

AZRE Magazine November/December 2010
Newsmakers, AZRE Magazine March/April 20111

Newsmakers: AZRE Magazine November-December 2010

Newsmakers In Arizona Real Estate

Newsmakers in the commercial real estate industry are featured each issue. Here are the movers and shakers for November – December 2010:

Cushman & Wakefield acquired Cowen Commercial, a real estate firm specializing in retail leasing, investment sales, shopping center repositioning and development. Owner and President Jonathan Cowen, Adam Madison, Joseph Hoye II and Shannon O’Keefe joined Cushman & Wakefield. Cowen will be a senior director.

Jamie Medress was promoted to senior vice president investments at Marcus & Millichap.

Cliff David was promoted to vice president of investments. He specializes in multi-family investment sales.

Michel Ayer, an attorney at Quarles & Brady’s Phoenix office, was elected to Habitat for Humanity’s Central Arizona board of directors. Ayer is a member of the firm’s real estate group.

GPE Management Services named Linda Tierney senior property manager of the company’s property management services. She will be responsible for the direct management of RJ Realty Investors’ Phoenix portfolio.

RiverRock Real Estate Group, which will manage an unnamed client’s 1.6 MSF Phoenix industrial portfolio, named Michelle Weber as property manager to oversee the portfolio.

Erik Marsh joined Grubb & Ellis as vice president, Industrial Group, primarily specializing in sales. Marsh joins Grubb & Ellis after spending six years with Marcus & Millichap.

Daniel Mercer joined Grubb & Ellis’ Financial Services Asset Management group as senior vice president. With 37 years of experience, Mercer will oversee the company’s distressed asset services in the Phoenix region.

Karl Abert joined Grubb & Ellis as vice president, Multi-Housing Group. His team will include David Cravath, vice president, who joined the company in June.

Laurel Lewis joined NAI Horizon’s Office Properties Group. She spent the past 10 years with Grubb & Ellis.

Geoffrey Harris was promoted to vice president capital markets with Mark One Capital. Harris began his career with MMCC in 2006, specializing in single-tenant/retail.

Tim Phillips joined GPE Commercial Advisors as associate vice president specializing in industrial, flex and office property sales and leasing.

Raul Abad rejoined the Phoenix office of Gust Rosenfeld and will focus his practice on commercial real estate transactions, including development, leasing, financing and acquisitions and dispositions. He was practicing law in Denver.

Mark Dillon was named designated broker for Cassidy Turley BRE Commercial. Dillon joined the firm in December 2006, and is adding to his current position as vice president and general counsel.

Faris Lee Investments, a retail investment firm, opened a Phoenix office and named David Wetta as senior member overseeing a 3-person team. Wetta previously was with Marcus & Millichap. Joining Wetta: Joseph Compagno, Paul Salinas and Nathan Hubbell. All 3 were formerly with Marcus & Millichap.

MODE Real Estate Management Services hired Gina Rouban as assistant property manager.

Quarles & Brady attorney Katea M. Ravega was elected treasurer of the U.S. Green Building Council Arizona Chapter. Ravega is a member of the firm’s Environmental Law Group and a LEED accredited professional.

AZRE Magazine November/December 2010

Healthcare construction

Healthcare Facilities: Just What The Doctor Ordered

Construction of healthcare facilities in Arizona boldly forged ahead in 2010, despite an economy that refuses to rebound and uncertainty over the impact of federal healthcare reform.

Officials figure that Arizona’s population will continue to grow and age, and because of the new federal law more people will have access to health insurance, which indicates a greater need for healthcare facilities.

Major players in the healthcare field from the Metro Phoenix area to outlying rural communities are investing in the future in a big way. Arizona healthcare facility projects with a total estimated cost of nearly $1B are finished, nearing completion or in the planning stage.

Banner Health has four projects totaling almost $300M: Banner Ironwood in Queen Creek, Banner Good Samaritan in Phoenix (expansion), and the Banner MD Anderson Cancer Center and Banner Gateway Medical Office II in Gilbert.

“You might say we’re in the business of being futurists,” says Peter Fine, president and CEO of Banner Health. “The risk of investments is not for the faint of heart.”

Technology a Driving Force in Healthcare Facilities

There is concern regarding healthcare reform that focuses mainly on how reimbursements will occur. Federal officials are pushing for more accountability in patient care outcomes, tying reimbursements to those efforts. As a result, information technology is becoming a key factor.

Mark Peterson of SmithGroup, a design and engineering firm, is working with clients to create healthcare facilities that play a direct role in patient care. It’s called evidence-based design.

“We’re providing clients with building solutions that support their patient-care mission and can be proven that there is a direct correlation between building design and improved patient outcomes,” Peterson says.

While the need for healthcare facilities most certainly is growing, some say the bad economy is resulting in a slight decrease in the utilization of hospitals. Experts say people are going to their doctor more and using hospitals less than they did a few years ago, especially those who have lost their jobs and may not have insurance coverage for an expensive hospital stay.

Another trend, experts say, is an industry focus on the word “healthy,” rather than the word “sick.”

“With a focus on healthy, what does this landscape look like?” queries MaryAnn Guera, CEO of BioAccel, a nonprofit organization that drives economic development through commercialization of late-stage basic and applied research in the life sciences. “Health or sickness? The look of the buildings we need will change around that.”

Metro, Rural Areas See Activity

Jason Meszaros, vice president of Irgens Development Partners, says healthcare projects in the Phoenix area represent the only type of development “that has any legs.”

Compared to previous years, construction has fallen off somewhat, some medical condos are back on the market, and there is still a desire for medical office space on or near medical campuses, he says.

For Irgens, which is building a 51,000 SF medical office facility in Gilbert, and for most others in the field, activity in 2011 should be fairly moderate, Meszaros says. Healthcare reform, the economy and population growth are all factors.

“The healthcare reform act throws a little bit of uncertainty into it,” he says. “People are a little apprehensive to make a long-term commitment.”

Healthcare facilitiesEven so, there is no shortage of building activity in the healthcare field, not just in the metropolitan areas, but in rural parts of the state, as well. Money for these ongoing projects comes from various sources, including tax-exempt bonds, operating reserves, philanthropy and the federal government.

For example, Phoenix Children’s Hospital embarked on a $588M expansion project in 2008, which will be 90% completed by the end of 2010. Officials expect to have the ambulatory clinics open by January, and hope to occupy the 11-story patient tower by June, increasing the number of beds to 626 from 345.

Bob Meyer, Phoenix Children’s Hospital CEO, says the project is funded primarily with $320M in tax-exempt bonds, plus operating reserves, fundraising and philanthropy.

There were 900,000 children in Maricopa County in 2003 when Phoenix Children’s began planning for expansion. That number has increased to 1M, and by 2030 as many as 1.7M kids will be living in the Phoenix Metro area.

“That’s why we’re building the building,” Meyer says.

At the same time, people are living longer. The population over 80 continues to grow almost exponentially, creating an increase in demand for medical services.

“That’s what has most people in the industry concerned,” Meyer says. “Hopefully there will be magic drugs, but in today’s technology it’s going to be a challenge.”

Nathan Anspach, senior vice president for medical economics at John C. Lincoln Health Network, expects capital budgets to see increasing pressure from information technology investment. Basically, that means less money for hospital construction and more money earmarked for IT improvements.

“IT investments are going to be required as part of the healthcare reform act, and that will impact capital construction,” Anspach says. “Healthcare systems are all looking at IT investments for electronic records and electronic measures like WiFi, and that’s going to cramp the construction budget.”

Recognizing the growing importance of IT, John C. Lincoln is building a $6M data center adjacent to its new administrative headquarters in the North Valley near I-17. The 4,000 SF building is expected to be completed in the first quarter of 2011. Susan Fuchs, media relations specialist, says the new facility will provide “a more secure environment for data management and electronic medical records.”

“It’s the wave of the future,” she says.

An Investment for Arizona’s Future

At St. Joseph’s Hospital and Medical Center, affiliated with Catholic Healthcare West, Bob Campbell, vice president for business development in Arizona, says, “We are looking at making investments in our whole continuum of services, everything from physicians’ offices, outpatient services, joint ventures, hospitals that we have, and health plans that we operate.”

Suzanne Pfister, vice president of external affairs, says CHW is moving toward partnerships, not solely construction projects. She mentions a joint venture with SimonMed, an outpatient medical imaging system.

“Under healthcare reform, we see more of a push toward preventative, lower-level healthcare, less expensive healthcare,” Pfister says. “What we’re looking at is — how can the right patient be in the right place? Maybe that’s not a hospital. Maybe it’s urgent care, or into family practice with an after-hours clinic.”

In partnership with United Surgical Partners, CHW is building an orthopedic surgery hospital at 40th St. just south of Loop 202. The 75,000 SF facility is expected to open next spring.

Other healthcare facilities in the planning stage include a 16,000 SF cardiac catheterization lab at Chandler Regional Medical Center, and a 145,000 SF expansion of the patient tower adding about 100 beds.

“Connecting the dots between construction and healthcare reform is really going to force hospitals to partner more with community physicians and outpatient options,” Pfister says.

Banner Good Samaritan Medical Center launched a $71M expansion of its surgical services department. When completed in 2012, there will be 20 state-of-the-art operating rooms, 76 preoperative and postoperative bays, a new waiting room with technology to keep families apprised during the surgery process, plus other amenities, according to Banner Good Samaritan CEO Larry Volkmar.

In outlying areas, construction is underway at what will be called Florence Hospital at Anthem northwest of Florence, says Gilbert Hospital CEO David Wagner. Completion of the 96,000 SF building, which will include an 18-bed correctional unit, is targeted for next summer.

Other rural projects include the 75,000 SF Marana Health Center for MHC Healthcare, slated for completion in March, and the $4.2M Superstition Mountain Mental Health Center in Apache Junction.

Meanwhile, USDA Rural Development, an arm of the federal Department of Agriculture, has committed $28.6M, including loans, for Arizona healthcare projects this fiscal year, says spokeswoman Dianna Jennings.

Other projects aided with federal funds are: the Pinal Hispanic Council Clinic in Coolidge, Copper Queen Rural Health Clinic in Palominas-Hereford, and the La Paz Regional Hospital in Parker.

Peterson says the economy is having an impact on the way people approach their own healthcare, and that’s having an impact on new hospital construction.

“Private sector clients are moving ahead with strategic plans for future master planning
and how best to position their organizations in urban areas,” Peterson says. “That’s true in Phoenix and Tucson and a little bit in Northern Arizona. It’s all about capturing the market and having the best possible response to healthcare reform and emerging changes to the economy.”

[stextbox id="grey"]

www.smithgroup.com
www.irgensllc.com
www.rurdev.usda.gov/az/ 

[/stextbox]

AZRE Magazine November/December 2010

GSA Phoenix Professional Office Building - AZRE November/December 2010

Public: GSA Phoenix Professional Office Building


GSA PHOENIX PROFESSIONAL OFFICE BUILDING

Developer: Ryan Companies US
General contractor: Ryan Companies US
Architect: AECOM
Location: SEC 7th St. and Deer Valley Rd., Phoenix
Size: 210,202 SF with a 345-stall parking garage

The $62M GSA Phoenix Professional Office Building will serve as the Phoenix FBI’s main field office. Ryan Companies US will lease the facility to the General Services Administration for 20 years. The building will pursue LEED Silver certification. Scheduled completion is for 4Q 2011.

AZRE November/December 2011