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MARCH // APRIL 2019
TOP 100
Lawyers $4.95
IN ARIZONA // 2019 REAL ESTATE
24
TRAVEL & TOURISM
32
TOP 100 LAWYERS
49
EAST VALLEY PARTNERSHIP
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Table of Contents 6
Trendsetters
12
CEO Series
14
Healthcare
18
Banking & Finance
24
Real Estate
28
Marketing
30
Dining
32
Travel
34 Tourism 38
14
30
Global Chamber
Law Trends 46 49 Top 100 Lawyers 73 East Valley Partnership
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Rising in the East
Things change so quickly. “Remember what the north side of ASU looked like before Tempe Town Lake?” asks Denny Barney, president and CEO of East Valley Partnership. “It was a dry riverbed. Then, you had some leaders who said, ‘We can do better.’ Now that area that was once a ‘no man’s land’ is a vibrant jobs center.” The same could be true about the entire East Valley. When I moved here from New York 20 years ago and became a resident of the East Valley, it was quintessential suburbia. Quiet streets. Nice neighbors. You had to drive a ways to get to work or go to a non-chain restaurant. Not any more. The PHX East Valley has evolved into a hotbed of innovation. The region has experienced tremendous growth over the past 30 years in industries such as emerging technology, advanced manufacturing, aerospace and defense, and healthcare. Companies are drawn to the PHX East Valley because of its pro-business climate; highly-skilled, educated workforce; robust infrastructure; and positive collaboration between civic, political, business and educational leaders. Vibrant downtowns have become the centers of once-sleepy Gilbert and Chandler. ASU is moving into an increasingly revitalized Downtown Mesa. And office complexes have filled the fields that once made Gilbert the “hay shipping capital of the world.” Things certainly change quickly. You can read all about the exciting things happening in the PHX East Valley in the East Valley Partnership supplement inside this issue of Az Business. And you’ll also learn how many companies in the East Valley have gone from being home-grown success stories into global entities in the Global Chamber supplement inside this issue. Things are certainly rising in the East.
Michael Gossie Editor in chief michael.gossie@azbigmedia.com 2
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SHOUT-OUTS
PetSmart Charities commits $2M to sheriff’s office Phoenix-based PetSmart Charities committed $2 million to the Maricopa County Sheriff’s Office to support the design and construction costs for a new facility that will house the MCSO Animal Safe Haven (MASH) Unit. “Our MASH program benefits animals, humans, and our community at large,” said Maricopa County Sheriff Paul Penzone. “This new facility will enable us to expand MASH to include engagement and responsibility for our inmate population.”
UA professor earns Humanitarian Heart Award Ann Baldwin, PhD, professor of physiology at the University of Arizona College of Medicine – Tucson, has received the 2018 Humanitarian Heart Award from the HeartMath Institute in recognition of her work toward the healing, enrichment and well-being of others. A Ann Baldwin physiology research scientist and horsewoman, Dr. Baldwin teaches a UA undergraduate course, “Physiology of Mind-Body Interactions,” in which students learn to take control of their stress response and maximize their cognitive skills using horses and HeartMath Institute techniques and devices. “This provides the students an invaluable life skill they can take with them as they move on to further education, training and careers,” she says.
APS supports grandparents raising grandchildren Duet: Partners In Health & Aging received a grant from Arizona Public Service Company (APS) totaling $10,000. The grant from APS consists of a $7,500 cash donation and $2,500 for in-kind printing that supports the nonprofit’s Grandparents Raising Grandchildren service area. Grandparents Raising Grandchildren provides support groups, workshops, activities for families, respite care, legal assistance and information and referral for grandparents who, for a variety of reasons, are raising their grandchildren.
Rosendin Electric celebrates 100th anniversary This year marks 100 years in business for Rosendin Electric, the electrical contracting industry’s largest employee-owned firm. With revenues upwards of $2 billion, Rosendin has grown dramatically over the last century with 6,000 employees across 15 regional offices nationwide. 4
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President and CEO: Michael Atkinson Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Erin Brassey | Alexa Buechler | Brooke Miller Contributing writers: Joel Coen | Benjamin C. Nielsen | John M. O’Neal Erin Thorburn | Steven G. Zylstra ART Design director: Bruce Andersen Art director: Mike Mertes MARKETING/EVENTS Marketing & events manager: Cristal Rodriguez Marketing specialist: Gloria Del Grosso Marketing designer: Patrick Griffin OFFICE Special projects manager: Sara Fregapane Executive assistant: Briana Villa Database solutions manager: Amanda Bruno AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Kim Bailey AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts RANKING ARIZONA Director of sales: Sheri King Az Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2017 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.
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15
coolest
TRENDSETTERS
emerging company
Forget 401(k)s and free coffee. Yeah, companies still offer them, but in today’s “I want it now” culture, retirement benefits and caffeine are not enough to lure high quality candidates to your company. FitSmallBusiness.com assessed data from a variety of key sources and determined its list of the 15 coolest emerging company perks for 2019.
perks
10 Service sabbatical — helping others on the company dime 11 Pet bereavement policies 12 Farmers’ markets that come to your office 13 Weather-based flextime 14 Wedding leave 15 Pet health insurance
1 “Pawternity” — time off to raise your little fur ball 2 Egg freezing and fertility treatments 3 Life coaching and counseling services 4 International retreats for company bonding time 5 Free beer on-site 6 Spa and wellness services 7 Nap rooms 8 Elder care — assistance with aging parents 9 Required time off
SOUTHWESTERN CEOS
CONFLICTING NEWS FOR ARIZONA
A recent survey by Vistage found that Southwest CEOs are more optimistic than the national average. Here are some key data points that show their optimism compared to the rest of the county. • 35 PERCENT of CEOs expect the economy to improve in the year ahead (25 percent nationally) • 74 PERCENT of CEOs expect to expand their workforce in the next year (63 percent nationally) • 67 PERCENT of CEOs thought the national economy has improved in the past year (64 percent nationally)
In a new study, SmartAsset ranked Phoenix as the nation’s secondbest city to retire for seniors with wanderlust, due to accessibility to international airports and an average fare of just $236 for a domestic flight out of Phoenix. However, seniors might not want to come back from their travels because Arizona ranked a dismal 46th in a TheSeniorList.com study that ranked the safest states for seniors. The safest state: Iowa. The most unsafe: Florida.
MORE OPTIMISTIC THAN OTHERS
KANYE WEST
is a game-changer for
Arizona arts
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SENIORS
Kanye West continues to be full of surprises. The acclaimed musician and lover of all things Kardashian donated $10 million to support the completion of James Turrell’s renowned Northern Arizona masterwork-in-progress — the Roden Crater Project. The Roden Crater Project is one of the most ambitious artworks ever conceived, representing more than 40 years of ongoing work to convert a dormant volcanic crater into a series of spaces that will allow visitors to gaze at the sky without the aid of a telescope and experience some of his own insights into human perception.
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TRENDSETTERS
TAKE ME OUT BALL GAME
CITIES IN ARIZONA WITH THE HIGHEST LABOR FORCE
With Cactus League baseball in full swing, some of Arizona’s most influential business leaders reflect on the impact of baseball on their lives.
HERE ARE THE TOP 5 1 Gilbert 70.8% 2 Chandler 70.3% 3 Flagstaff 69.0% 4 Avondale 68.9% 5 Tempe 68.6%
TO THE
America’s pastime has impacted some Arizona business leaders R. CRAIG COPPOLA, founding principal, Lee & Associates: “I was drafted by and played professional baseball in the Minnesota Twins organization.”
BRET HELGESON, president and
managing partner, Adopt Technologies: “My prized possession is a leather baseball mitt that my dad used as a kid and I played with through my baseball years. I hoped one of my boys would use it as well. However, it finally bit the dust after multiple repairs.”
CALEB S. LIHN, founding partner, Thies & Lihn: “I have a picture of my father and I at the Baseball Hall of Fame when I was 12 and he was 68. We are both wearing New York Mets uniforms. He was older when I was born and passed when I was 16 … This photo reminds me where I came from and how I got to where I’m at now.” AL STEVENS, president, the spr
agency: “I’m a lifelong baseball fan, so my most prized possession is my Chicago Cubs season tickets. There’s just something magical about sitting in the stands at Wrigley Field and watching nine innings of baseball.”
CRAIG ZOLLINGER, managing
director and Intermountain Region head, JP Morgan Chase: “Our lives revolved around baseball as my two boys grew up. Both were fortunate enough to play Division 1 college baseball. They’ve since graduated and went back to their coaches and asked for their game jerseys to frame and give them to me for Father’s Day. Priceless.”
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Did you know that in Arizona, Gilbert has the highest percent of people in the labor force at 70.8 percent? People in the labor force include those employed as a civilian or the armed forces plus those that are unemployed and looking for work.
HOW LONG WILL $ LAST IN PHOENIX? A million-dollar nest egg for retirement sounds good, right? For prospective retirees, it can be a great start, a goal, or an aspirational figure to take you comfortably through your retirement years. SmartAsset released a study that found $1 million lasts 25.17 years in retirement in Phoenix, which ranked the city at No. 116 out of the 268 cities studied. McAllen, Texas, ranked No. 1. $1 million will last more than 33 years there.
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TRENDSETTERS
GEORGE LOPEZ
OPRAH WINFREY
HOLLY HOLM
The comedian and actor is opening his first Arizona restaurant this year at Gila River Hotels & Casinos in the West Valley. George Lopez’s Chingon Kitchen, a fastcasual restaurant, pays homage to Lopez’s heritage and features scratch-made tacos, burritos, bowls, spit-fired al pastor and handmade guacamole.
Phoenix-based True Food Kitchen, which has pioneered health-driven dining, got a boost from a very famous face last year when the talk show icon made a significant investment in the company, joined its board and is collaborating with its leadership team to advance the company’s business and marketing objectives.
The UFC star, who knocked Ronda Rousey from the ranks of the undefeated with one of the biggest upsets in mixed martial arts history, packs a punch in the restaurant world, too. She teamed up with her brother, Western Holm, to open Blue Clover Distillery in Scottsdale last year.
DIERKS BENTLEY The Phoenix-born country music singer and songwriter helped develop Whiskey Row, an American-inspired gastropub unlike any other. Bentley now has locations in Scottsdale, Tempe and Gilbert. In 2017, he played a free show at the Gilbert location before headlining at Country Thunder.
ROBERT DE NIRO Nobu, which was founded by chef Nobu Matsuhisa and Academy Awardwinning actor Robert De Niro, will be part of Scottsdale Fashion Square mall’s “luxury wing.” Nobu Scottsdale will be the market’s introduction to the popular restaurant chain, which has nearly 40 locations around the world.
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FRANKIE MUNIZ The Former “Malcolm in the Middle” star and Paige Price, his fiancée and business partner, own Outrageous Olive Oils & Vinegars in Old Town Scottsdale. The couple bought the shop, which sells premium olive oils and aged balsamic vinegars, in 2018 and say they are hands-on owners.
MINUTES
OF FLAME
Some of the nation’s biggest celebrities make their mark on Arizona’s food scene Some famous faces are changing Arizona’s increasingly sophisticated culinary scene. So check out this list of some of the celebrities who are investing their time, money and ideas in Arizona’s food scene before you walk into a restaurant and say, “Has anyone ever told you that you look like (fill in celebrity’s name)?” 10
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CEO SERIES
SILVER LINING Sun Health’s CEO focuses on personalizing the experience for the ‘Silver Tsunami’ generation By MICHAEL GOSSIE
J
oe La Rue was a practicing attorney when he had an epiphany moment that changed his life. “About 30 years ago, I was invited to the Sun Cities and met the leaders of both Sun Health and community leaders,” he recalls. “I saw that they placed service above self and were focused on doing what was right for the community. It was a very powerful message and one that’s kept me here 30 years later.” In June, Joe La Rue was named Sun Health’s fourth president and CEO in the nonprofit’s 52-year history. Sun Health oversees three senior housing campuses in the Sun Cities area, while the Sun Health Foundation raises money for the organization’s hospitals. Az Business talked with La Rue about how our aging population is going to impact Sun Health and our communities.
Az Business: What did you learn from practicing law that helps you as CEO of Sun Health? Joe La Rue: As lawyers, we are trained to look at issues or opportunities from many vantage points. When you are dealing with the public, stakeholders, donors, residents and patients, you have to look at things from many different angles as well as from an individual’s perspective. AB: Why is the West Valley a good location for Sun Health to call home? JLR: It’s where we were born in 1965. Del Webb and the Boswells realized they had to grow healthcare if they wanted to continue to grow and develop the West Valley. Sun Health was created to fill that need and it’s our home and will continue to be our home even as we grow across the Valley, state and region. AB: How difficult is it balancing all the different components of Sun Health — the senior living facilities and the foundation? JLR: I see it as one component. It’s all about how we are living. How do we all live an empowered and passionate life that is purposeful? We have different components in the organization, but all those components lead to living an empowered and healthy life. AB: We’ve all heard about the “Silver Tsunami” that is coming. Is Arizona ready for this aging population boom? JLR: Arizona is ahead of some places because we have always attracted
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many folks who are going through their journey at a later age. We have a lot of history dealing with folks who are aging. So we are well-prepared to adapt and change. Sun Health is uniquely prepared because we’ve been involved with it for more than 50 years. AB: How is Sun Health prepared to deal with this Silver Tsunami? JLR: Whether it’s working with hospital systems, promoting new modalities as healthcare changes, creating new ways of senior living on our campuses, creating volunteer opportunities, or utilizing our at-home product and bringing what we do best to someone’s personal residence, Sun Health is extremely ready for this aging population. AB: How has Sun Health changed since you originally became affiliated with the organization? JLR: The biggest change I’ve seen is that today’s resident coming in wants to know a couple things. They want to have that trust and faith in you, but they also want to know that you have their best interests as a priority and you’re going to let them live their life the way they want to live it — the way they imagined living the last act of their life. So our business has transitioned to where it is that residentcentered focus that creates communities that let individuals choose their path.
JOE LA RUE: “Our different service
offerings can all be customized,” says Sun Health’s president and CEO. “We are really trying to empower the individual because the individual knows what is best for him or her.” (Photo by Mike Mertes, AZ Big Media)
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HEALTHCARE
PRESCRIPTION
FOR SUCCESS Innovation and growth drive the West Valley’s booming healthcare sector By ERIN THORBURN
M
aybe at one time, healthcare expansion and innovation in the West Valley was like a mirage. There was a glimmer of something happening, but the full picture was blurry. Not anymore. Today, 1.6 million West Valley residents have numerous options when it comes to innovative healthcare. According to 2017 Census estimates, there were 49,610 healthcare workers living in the West Valley. From wherever you stand, the vision of West Valley healthcare maturation should be crystal clear. And in 2019, the West Valley has it all when it comes to healthcare: New facilities, job creation, diverse education, and innovative care and treatment. Keep these four elements in mind when assessing what “expansion in West Valley healthcare” truly means. Anyone traveling the I-10 between Watson Road and 99th Avenue can quickly see the West Valley’s booming healthcare sector. Avondale’s Health Tech Corridor connecting to Goodyear’s Medical Innovation Corridor, for example, houses more than 200 medical and healthcare-related business. This includes the Abrazo West Campus, Cancer Treatment Centers of America Phoenix, and Adelante Healthcare Goodyear’s new 45,000 square-foot facility, which is opening in phases. “The growth in healthcare services is a direct result of the need created by the growing and diverse communities we serve,” says Christina Oh, CEO of the Abrazo West Campus, “and research shows that nearby excellent, cost-effective healthcare is considered a ‘must-have’ by employers and families alike.’” AREAS OF GROWTH Other areas along the I-10 and the Loop 101 in the West Valley are home to the Dignity St. Joseph’s Westgate Medical Center, Phoenix Children’s Southwest Valley Specialty Care 14
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PART OF THE GROWTH: Adelante
Healthcare Goodyear, a nearly 45,000-square-foot comprehensive primary health care center on the campus of Abrazo West Hospital in Goodyear, was recently completed and will offer a one-stop shop environment of care. (Provided photo) AB | March - April 2019 15
HEALTHCARE Center, Banner Estrella Medical Center, and the Abrazo Arrowhead Campus. In Sun City, the evolving and continuing partnership between Sun Health Foundation and Banner Health went even deeper with its “Generosity for Generations” campaign. Generosity for Generations was designed to raise and invest $48 million to continue to support being a leader and create superior healthcare at Banner Boswell and Banner Del E. Webb hospitals. The Campaign initiative includes plans for a 40,000-square-foot Banner Boswell Medical Center and emergency room expansion. This will provide 33 percent more patient beds and expand service capacity from 45,000 patient visits annually to 60,000 patient visits annually. “Our long-standing partnership with Banner has helped us to develop two additional life-care healthcare facilities,” says Gina Ore, Sun Health Foundation’s executive vice president and chief philanthropy officer. “Sun Health has a total of three nonprofit life-care communities, employing 650 employees.” Another recent addition to the West Valley’s healthcare facilities: Destiny Springs Healthcare behavioral healthcare facility in Surprise. The facility’s recent opening will introduce another 250 job opportunities for medical, support and administrative staff. While economic development in the healthcare sector continues to fuel job creation, postsecondary support from educational outlets such as Midwestern University, Grand Canyon University, ASU West and the community colleges consistently shapes and provides the skilled talent to staff the West Valley’s innovative healthcare facilities. “The demand for all healthcare providers— including veterinary—has been strong and will continue to be strong,” says Dr. Dennis Paulson, vice president of Midwestern University. “While we do not have exact numbers of how many alumni remain in the West Valley, our clinics employ many of our alumni and serve as primary training sites for our current students. Approximately 40 percent of our graduates remain in the state of Arizona to practice, helping to address critical shortages statewide.” In addition, Midwestern University has invested $425 million in its Glendale campus and is the home of Arizona’s largest medical school and the state’s only veterinary college. The Glendale campus has been instrumental in creating more than 850 campus-based jobs and linking more than 8,000 healthcare professionals from around the United States to Glendale as preceptors, according to Paulson. 16
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“Part of our growth includes new Graduate Medical Education programs, which will be based at Abrazo Arrowhead Campus,” says Jeff Patterson, CEO of the Abrazo Arrowhead Campus. “Starting in July 2019, we’re adding an internal medicine residency and a general surgery residency, which will help bring new physicians to the community.”
Raj Garg
Christina Oh
Gina Ore
Jeff Patterson
Dennis Paulson
AREA OF INNOVATION The burst of diverse healthcare employment and education opportunities, while significant, aren’t the only noteworthy aspects of the ongoing West Valley healthcare expansion. Innovation is occurring everywhere in the West Valley, in several ways. “The emergence of urgent care centers, freestanding emergency centers and micro-hospitals like our planned facility in Surprise, are innovations in care,” Oh says. “It’s all about delivering the right care, at the right place, at the right time.” Cutting-edge research to improve outcomes for patients with cancer is also happening in the West Valley. Immunotherapy research being done at CTCA has shown to be effective in shrinking tumors for a durable period of time for a select percentage of patients. A major area of the research is focusing on implementing combinations of therapy to improve on those results. “Clinical advancements in cancer care have significantly changed the way in which we treat the disease, including offering patients access to the most advanced treatment options in a convenient, more costeffective outpatient setting,” said Raj Garg, MD, JD, president and CEO of CTCA. To stay current with technology and work with highend physicians who can support innovative service lines, Abrazo has spent more than $100 million to become a leader in innovation. Abrazo partnered with Cobalt Rehabilitation Hospital in Surprise to become the first in Arizona to provide a new robotic body-weight support system to allow paralyzed patients to walk. Abrazo’s Arrowhead Campus became the first hospital in Arizona to use the new Mazor Robotics Renaissance Guidance System for minimally invasive orthopedic spine surgery. Abrazo also became the first healthcare organization in Arizona to use NICO BrainPath, state-of-the-art technology that offers patients a less-invasive surgical option and for previously inoperable brain conditions. For Sun Health, innovation encompasses adaptability. “Innovation is being able to reinvent ourselves,” explains Ore. “For our unique senior and life-care models, this means incorporating preventative health strategies, focusing on quality of life, and offering services such as memory navigation, care transition, wellness programming, and more in a community-based partnership.”
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BANKING & FINANCE
TOUGH
TALK
Here’s how to discuss money and finances with your aging parents By ALYSSA TUFTS
P
eople would rather talk about many, many other things than the daunting and awkward “m” word: money. It’s a topic that can cause disagreements and tension among families. But the important thing to keep in mind when discussing money, especially with aging parents, is to approach the conversation with concern, with respect and with a plan for the future without additional worry. While the conversation can be challenging to navigate, experts can offer guidance on how to do so in a way that both adult children and parents can express their opinions and everyone involved can come to an agreeable decision. “You want to approach these topics with sensitivity, empathy and respect,” says Sean Campbell, senior wealth counselor at Versant Capital Management. “I think you want to lead with loving intentions, and let your parents know you want to discuss their financial life because you care.” A Fidelity Investments survey found nearly two-thirds of families disagree about the optimal time to have a discussion about money. And according to a March 2017 survey by financial services group TIAA, 30 percent of sons and 43 percent of daughters said they found it “uncomfortable” to talk with their parents about money. “The most important thing that I tell folks is that it’s important to remember that no matter what the circumstances, these people are always your parents,” says Donna Taylor, COO of LifeStream Complete Senior Living. “Approach the conversation from that place of respect and honoring the fact that they are the parents. Recognize that sometimes the relationship that has existed now or in the past is going to color the tone of that conversation. I’m a big fan of simple and direct, but also being understanding.” Taylor recommends people approach the conversation without accusation, and consider their parents’ feelings as they could feel
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BANKING & FINANCE
“You want to approach these topics with sensitivity, empathy and respect.” — Sean Campbell
a little defensive given they’re getting older and their children are talking about their money. “When I approached it with my parents, I viewed it as: I want to make sure I am positioned as best I can possibly be to support what you want going into the future and to do that, I need information,” she says. GETTING STARTED Taylor says approaching this conversation is going to be guided by the parents’ and children’s relationship. “For some people, it works very well to sit down and have a candid conversation,” she says; but for others, she says, it’s understanding what or where to find certain information such as their parents’ financial planner’s contact information or knowing if there are estate documents or a power of attorney in place in case financial, medical or mental health decisions need to be made. Lennard van der Feltz, the founding partner of Pinnacle Financial Advisors, says this conversation begins with planning how you’re going to approach it — tactfully with love — and realizing that your parents may have been managing their money on their own for many years. “One of the things I think is paramount is are you the only child or are there siblings involved?” van der Feltz says. “Can you get on the same page with each other? When all the children of your parents are on the same page, it becomes a lot more doable to discuss individual financial topics without creating strife in the family.” One resource people can use for advice on how to approach this conversation is LifeStream Complete Senior Living’s seniorlivingchecklist.com. Taylor says people can view the checklist and listen to a three-part podcast that walks them through starting that conversation, the options that are available and how to pay for long-term living, retirement or whatever their future plans are. In a study by Fidelity Investments, 75 percent of adult children and their parents agreed it’s important to have frank conversations about retirement expenses, eldercare and estate planning. However, only 44 percent have had detailed discussions about covering living expenses in retirement; 37 percent had discussed healthcare and elder care in depth; and 59 percent had detailed conversations about wills and estates. In addition, Joel Johnson, East Valley market president for FirstBank, says if you have the ability, the children should be proactive with this discussion so you don’t make decisions when you’re rushed or you can’t fully think through. That way, 20
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everybody has a say and can participate in the results. Having this discussion early can help mediate any issues that may arise later and lessen the stress involved. For some families, having this conversation during or around the holidays can be the best time since most likely the family is together. Johnson recommends choosing a relaxed time where all the involved parties can get together in the same place. STRESSFUL DISCUSSION “It absolutely can be stressful and it’s a hard conversation to have,” he says, “but from a business standpoint, we see a lot of people that are having to deal with this after a life-changing event has already taken place. Children are out of town sometimes or parents are no longer able to be involved in those decisions and the exponential amount of stress that causes to the situation is no fun for anybody to see or have to go through. I think if you can plan ahead and have that conversation earlier, it puts a road map in place on how things are going to be dealt with and what’s going to happen. I think the peace of mind that all parties get from that is a good thing.” Campbell agrees. “I think if you can look past the emotions and make a plan ahead of time, it can help ensure that poor decisions aren’t left to chance,” Campbell says. “It’s really about working with parents to ensure that their wishes are clearly articulated and respected and reducing misconceptions can help ease family tensions and disharmony. “I think these discussions, while difficult, can help all family members breathe easier, and I think if the decisions are made relatively quickly in the middle of a crisis, they may or may not be aligned with the loved ones’ wishes. You let your parents know you care about them, and you want to make things easier for them, and you’re providing security and peace of mind, and it’s worth the initial awkwardness,” Campbell says. The general consensus is to have the conversation early and before it’s needed. Often, that can mean when parents are still working or shortly after retirement. “If you can discuss it and come to agreements when there is not yet a cloud on the horizon, then that’s the best for all involved,” van der Feltz says. “We would advocate for having the conversations early, if for no other reason than to be sure we understand what your mom and dad want,” Taylor says. “Because coming from that position of choice and control, it’s always going to be a better place than acting when you’re in a crisis. Arguably, even with all the great
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BANKING & FINANCE
Sean Campbell
Joel Johnson
planning, there may still be a crisis, but I’d much rather go into a crisis armed with the right information.” DON’T WAIT While it’s agreed that this discussion is best had before it’s needed — before children notice their parents’ forgetting to do certain things, such as paying their bills on time, van der Feltz says. “Initially, it’s not a big deal but it starts to build up and when you start noticing that, the earlier the better while still respecting your parents’ knowledge about what they do know and what their preferences are,” he says. Campbell says you don’t have to know everything about your parents’ assets and liabilities, but there are certain things to be aware of, such as critical financial and health documents, where they’re kept, and if possible, review them annually to keep them up to date. “I also think it’s important to try to give your parents control whenever possible, you want to reassure them it’s not an attempt to take over their life. You simply want to offer to help them as they age,” Campbell says. Because of the difficult nature of this type of conversation, it can be valuable to consult a professional such as a financial planner or advisor, who can alleviate tension and mediate any conflict to have a productive outcome. “It’s sometimes a little hard for parents to suddenly have you be the responsible adult in the room, that role reversal can be at times quite stressful even though everybody understands that you’re doing it out of the best intentions,” van der Feltz says. “And
TALKING POINTS As seniors age and enter the final chapters of their lives, it’s important that their loved ones have talked with them about these issues:
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Donna Taylor
Lennard van der Feltz
a third party who has words of wisdom to share and is good at building and bridging relationships, goes way beyond the quality of their investment advice or financial knowledge, that counseling relationship can add tremendous value.” THIRD-PARTY HELP In addition, Johnson says important documents that can help the third-party begin assessing parents’ financial situation are financial statements which give a picture of assets and liabilities and ongoing sources of income because it “gives whoever is going to be analyzing that information a good starting point and a good map to see what needs to be dealt with and what that path forward looks like for later life stages.” Van der Feltz says both parents and children can benefit from having this discussion because “there may be stresses later in life that don’t have anything to do with managing the finances per se … but if you can focus on those other elements without having to worry about money and how it is being managed, that is terrific, both for the parents whose money it is and whose life is being left, but also for the children who are worried about their parents and want the best for them.” “There’s always this tendency on our part to want to figure out what the next many years look like and plan for each eventuality,” Taylor says. “My best advice is to make the best decisions you can with the information you’re working with right now. With aging, there is a lot of change that happens in those latter years of our life, and I know for me and the people I love, I want them to experience their best life during this portion of time.”
• Making sure financial matters are documented and listed for easy access when needed. • Engaging a legal professional or power of attorney, so healthcare directives and other legal matters are in place. • Medical information is chronicled so loved ones can keep track of doctors, dentists, medical appointments and medications when needed.
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5045 N 44th St, Phoenix, AZ 85018 602-952-8648 | cartersmensclothing.com Mon-Sat: 9am - 6pm | Sun: 10am - 2pm AB | March - April 2019 23
REAL ESTATE
OPENING THE DOOR TO
TECHNOLOGY The digital age is changing the way consumers buy and sell homes By BROOKE MILLER
I
s the real estate agent a dying breed? As the practice of buying and selling a home is scooped into the palms of technology, the future of the residential real estate industry and real estate agent is uncertain.
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Jerry Coleman
Julie Frisoni
Technology’s transformative presence in residential real estate aims to alleviate the stress of coordinating showings and driving from house to house to find a home. And while technology makes it more convenient for consumers, technology is threatening the individual real estate agent. But experts from Phoenix-based housing app Opendoor says the real estate agent’s career might still be salvageable. OPENDOOR’S POLICY Jacqueline Moore, Opendoor’s vice president of real estate and community development, said Opendoor offers a “new, simple way to buy and sell homes.” Moore said that traditional real estate agents frequently present Opendoor offers to his or her clients. “Agents love to show Opendoor homes because it makes it easier for them to know they’re going to have that certainty that Opendoor gives,” Moore said. “While it’s a different way for agents to interact with their customers or in real estate, we definitely share the same mission of being able to provide the best service to our customers.” If real estate agents are a part of the equation when showing a home or using Opendoor to find homes to sell, they are paid commission, like any other real estate transaction. Last year, Opendoor’s collaboration with agents totaled more than $20 million in “commissions and referrals to other brokerages,” which Moore expects to more than triple in 2019. “We’re aligned in what our goals are, wanting to serve the customer and meet their needs,” Moore said.
Jacqueline Moore
A KEY FEATURE Though the company offers the opportunity to include agents in the transaction process, the technology provides a convenience that exceeds an individual agent’s capacity. Julie Frisoni, owner and principal of Frisoni PR, said that apps allow homebuyers to view photos online at anytime with the ability to access the homes on his or her own schedule. “Once you download the app, when you go to the door, the app literally acts as a key and unlocks the front door for you,” Frisoni said. “It allows you access into any one of our Opendoor homes all across the valley.” Moore added that the “proprietary system” is designed to give access to any of the homes listed on Opendoor from 6 a.m. to 9 p.m. But how secure can that be? Moore said that security is a “top priority” at Opendoor. The company requires every home visitor to download the application and verify his or her identity via the registration process prior to entering a home. “That process has multiple steps that ensures the homebuyer’s identity and other key facts are authenticated,” said Moore. “We’ve had nearly 100,000 home shoppers visit Opendoor homes since 2014 and are currently seeing tens of thousands a month, and the process has proven to be safe, secure and convenient for would-be buyers. Every Opendoor home is equipped with a state-of-the-art security system that monitors the home 24/7.” PARTNERSHIP PROGRAM Opendoor has also recently adopted a homebuilder partnership program,
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REAL ESTATE where consumers looking to purchase a newly-built home can make a punctual transaction, so they are not homeless nor paying two mortgages at once. “Opendoor is the perfect option for new home builders because buyers can line it up nicely and eliminate that uncertainty of going the traditional route,” Moore said. Through this partnership, the company claims a hassle-free transition between buying and selling a home, including a real estate agent upon request. “Typically, when a buyer is interested in buying a new home through a builder, it could take months for that home to be finished and it’s really difficult to line everything up,” Moore said. This eliminates that uncertainty of going the traditional route.” Moore said Opendoor is the perfect option and partnership for new home builders. Through the website, the seller can view the comps within the area to determine a competitive offer. “Homeowners can sell at a competitive price in a matter of days without the hassle of listings and showings,” Moore said. Frisoni said that if a buyer purchases a home from one of the 14 top homebuilder companies with whom Opendoor partners, Opendoor can also make an offer on the client’s existing home. “Once we buy them, we put them back on the market and we’re a home seller,” said Frisoni. But Moore said there is a benefit to simultaneously buying and selling a home through Opendoor. “We call it a trade-in and two transactions can become one seamless experience,” she said. Moore said Opendoor draws its revenue
from a “fee” on these transactions. “For sellers, we aim to offer a competitive price for your home and take a service charge that enables us to provide a streamlined experience and world-class service from offer to closing,” Moore said. The charge averages around 6 percent to 7 percent, which Moore said is on par with the traditional route. “The homebuilder partnership program, the 30-day money-back guarantee, all of what we do, is a part of our company that’s really transforming the whole buying and selling process,” Frisoni said.
Horowitz, Coatue Management, General Atlantic, GGV Capital, Invitation Homes, Khosla Ventures, Lennar Corporation, NEA, Norwest Venture Partners and 10100 Fund, among others, according to Moore. Moore said these investments contribute to Opendoor’s sophisticated pricing capabilities and help mitigate risk by selling homes accurately and at the same pace as the market.
COMPETITION ENSUES But Opendoor isn’t the only company with this idea in mind. Offerpad, based in Gilbert, is also a INVESTMENTS AND FUNDING real estate technology company involving Moore said that there is “no limit” to agents that buy and flip homes for resale at a competitive price. the number of homes Opendoor owns Jerry Coleman, co-founder of Offerpad, at a time and the company mirrors the said that the company is agent-friendly. seasonality and conditions of the larger “We are very aware of what disruption market. can mean in this industry, but that’s not “This will not change as we expand into our focus,” said Coleman. “Our focus is new markets,” Moore said. “Phoenix was on providing the best experience for the Opendoor’s first market and we intend to homeowner.” be in 50 markets by 2020.” Coleman said the company has paid Moore said in order for Opendoor to be a guaranteed, all-cash buyer on every home, millions of dollars to agents that have the tech company collects funds through a helped sell the company’s re-listed homes. “Our long-term goal is to bring this combination of equity and debt financing. model to as many homeowners as we can, The opportunities this capital provides reduces the “stress, hassle and time” on the grow the volume we are doing in the eight markets we are in now and open up new buyer’s behalf, said Moore. markets,” Coleman said. “The end goal “Total funding for Opendoor includes is to provide a one-stop solution for our $1.045 billion of equity capital and $2 billion in debt financing,” Moore said. customers.” “Opendoor will deploy that money in Though Offerpad and Opendoor aren’t a number of ways, including building comparable in every aspect, the attraction technology, purchasing homes, hiring of consumers to a new way of buying and employees and expanding to new cities.” selling a home is evident. Opendoor investors include Access “I think our rapid growth is a signal Technology Ventures, Andreessen that people are looking for an easier way to buy and sell their home,” Frisoni said. “Like Uber and Lyft transformed the transportation industry, Opendoor is the first of what people are calling ‘iBuyer,’ where you can buy and sell your home completely online. No home showings.” Moore said that, to date, Opendoor has “Homeowners can sell at a competitive price in served more than 27,000 customers and the company is working continuously to a matter of days without the hassle of listings achieve the best evaluation model in the and showings.” —Jacqueline Moore industry. “The real estate industry has seemingly gone unchanged for decades and it’s one of the oldest industries,” Moore said. “I think customers are ready for a new, better way to transact. Opendoor is a perfect match for that.”
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MARKETING
4 reasons cookie-based marketing doesn’t work — and what does
T
racking conversions is something that’s been around for a while. But the way we’re tracking conversions today—and what we can find out along the consumer’s journey—looks remarkably different from how we did it a year ago. The old school way of approaching digital marketing is taking a cookie-based approach, meaning that a small piece of data (the “cookie”) is placed on your computer or device and will track your actions. When marketers then look at Google Analytics, they get an idea of what that user did on their website: how long they stayed, what pages were visited, what actions the visitor completed, and so on. While it sounds great, there are a lot of holes in the cookie. It’s like Swiss cheese at this point. Why’s that? The problem with cookie-based tracking is fourfold: 1. Some browsers block cookies on mobile. Essentially, Joel Coen if a user takes an action on your
Marketing
website from their desktop and then visits your website from a smartphone, it will look like two different people visited your website, not one. 2. Some Internet users have chosen to use ad blockers to remove ads from websites and also proactively clear cookies. This makes it impossible to capture any meaningful data about those particular users who are visiting your website and taking any kind of action. 3. A majority of mobile devices don’t accept cookies, which means you can’t remarket them because you don’t know who they are (even though they are still recognized as a visitor). Knowing that mobile has surpassed desktop in Internet usage, it’s becoming more important to interpret the data as it relates to mobile to understand the complete journey. 4. And the No. 1 problem with cookie-based marketing? Cookies aren’t people. They’re ... cookies. Data. That’s it. Wouldn’t you rather know what Mary does when she visits your site from any device at any point along her journey? How many times she visits before making a purchase? If she’s on her desktop or smartphone? Which pages she visits most? You wouldn’t know the answer to these important questions if you strictly take a cookie-based approach. People-based marketing provides brands with myriad opportunities to make a meaningful connection with an individual based on where he or she is in the funnel. Who wants to be treated like a number, anyway? And with a cookie-based marketing strategy, that’s exactly what’s going to happen. They’ll get treated like a number, become frustrated and then find another company—your biggest competitor, perhaps— that will treat them like the individuals they are. And this isn’t just me hypothesizing, either. According to Google, there are three areas in which brands should invest to provide an optimal customer experience: 1. Help me faster 2. Know me better 3. Wow me everywhere In the “know me better” category, Google says that 63 percent of consumers expect a brand to use their purchase history to serve them more personalized content. Just the other day I got an email from a company I’ve bought from before that treated me like a prospect—introducing their brand to me for the first time, apparently. I don’t know about you, but I hate when that happens. It makes all the interactions I’ve ever had with that company seem so impersonal. Meaningless. Like they never happened. And who wants to feel like that? Joel Coen is chief digital officer of Chandler-based Commit Agency, a fullservice advertising agency that believes thoughtfully designed consumer interactions informed by a well-defined brand create moments worth remembering and sharing.
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New for 2019 The San Tan Ford Club Pricing San Tan Club seats start at $1,250 per season with a $1,000 Capital Gift to Sun Devil Athletics.
Amenities • Exceptional sightlines and viewing angles extending from goal line to goal line on the east side of the stadium. • Access to enter the club 90 min before kick-off. • Climate-controlled club located behind reserved seats. • 21-inch individual padded seats with backs and armrests. • Extended access to purchase beer and wine. • Access to purchase premium food options.
Arizona State University
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For more information call 480-965-5812 or visit TheSunDevils.com
DINING By MICHAEL GOSSIE
G
Opa!
KOVO Modern Mediterranean gives Greek food lovers something to celebrate and savor
rowing up in an Italian family in New York, my diet has always been heavily influenced by the Mediterranean flavors that defined my favorite childhood meals. But it wasn’t until I visited Greece that my palette expanded past the Adriatic Coast. I became so smitten with the vibrant flavors of Greek food that I begged, pleaded and ultimately paid a street vendor in Athens to teach me how to make authentic chicken souvlaki. I am thankful I did because most of the Greek restaurants I tried when I returned to the United States lacked that culinary combustion of flavors that I fell in love with in Greece. Then I visited KOVO Modern Mediterranean and it was like falling in love all over again. It’s easy to see why KOVO, which showcases the traditional cuisines of Greece and the Mediterranean region, stands out. The restaurant is the brainchild of longtime restaurateur, Yianni Ioannou, whose roots in the industry and in the Mediterranean run deep. He grew up working in his family’s restaurant on the island of Cyprus in the Eastern Mediterranean Sea before moving to the United States and operating Greek restaurant chains in multiple states. The menu at KOVO has been shaped by Ioannou’s time in Greek restaurants, his travels throughout the Mediterranean, as well as his Cyprian roots. “We are excited to bring to the Valley the simple, delicious flavors and bright spices of the Mediterranean,” Ioannou says. “This area of the globe is a melting pot of cultures and culinary influences. This diversity of cuisine will be showcased at KOVO in a modern, approachable way.” The Greek word, KOVO, means “to carve,” so it’s no wonder rotisserie meats are the star of KOVO’s deliciousness show. Selections such as lamb, beef and organic chicken are cooked vertically on the rotisserie and are carved to order. A wood-fired oven also produced crispy pizzas, such as the Napoletana, Blanca, and Della Carne, as well as other wood-fired specialties. One of the things that made eating in Greece so special was every meal had the festive feel of Sunday dinner at my Italian grandmother’s house. And KOVO creates that same welcoming environment. For guests wishing to savor a sampling of Mediterranean cuisine, there are a wide variety of shared plates, such as house-made hummus and tzatziki, grilled eggplant and Halloumi, sheftalia (homemade Greek sausage), or grilled octopus. One can’t miss shared selection is the Mezze Signature Carved Meat Platter, which features lamb and beef gyro, organic chicken gyro, homemade Greek sausages, and is served with tzatziki, fries, Greek salad and warm pita bread. This is as authentic a Greek experience as you will find in Phoenix. The best thing: It’s enough to feed a family after appetizers. In addition to signature cocktails and local craft beer, KOVO also has an amazing wine menu and an assortment of homemade sweet and savory pastries, including spanakopita, baklava and bougatsa. There’s only one thing left to say: “Opa!”
KOVO Modern Mediterranean
10625 N. Tatum Boulevard, #150, Phoenix 602-237-5872 kovomedi.com 30
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COMING NEXT ISSUE •
Featured topics include:
• A guide to the best summer stay-cation deals of 2019 • • • • •
Meet the Industry Leaders of Arizona A look at how the Arizona-Mexico Commission has driven business for 60 years What is Arizona doing to overcome the shortage of healthcare workers?
• An analysis of the sectors driving Tucson’s hot economy
For additional information call 602.277.6045 or visit azBIGmedia.com AB | March - April 2019 31
TRAVEL
VISITING HISTORY Here are 9 hidden gems to experience as Old Town San Diego celebrates its 250th anniversary By MICHAEL GOSSIE
A
s if Arizonans need another reason to beat the heat and escape to San Diego, 2019 marks an important milestone for the popular destination. Old Town San Diego is more than just a popular tourist site. It was actually the first European settlement on the West Coast. The historic area is considered by many to be the birthplace of California. And Old Town’s rich history and culture will take center stage in 2019 as San Diego commemorates the 250th anniversary of the founding of “Alta California.” Established in 1769, Alta California’s first settlement included Mission San Diego de Alcala and a neighboring presidio, originally built above Old Town. The area later developed into San Diego’s first “downtown,” and today Old Town San Diego brings to life the city’s rich Hispanic heritage from 1821 to 1872.
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VISITING SAN DIEGO?
For more information on San Diego’s offerings, including exciting vacation packages and valuable coupons for attractions, restaurants and more, visit the San Diego Tourism Authority’s website at sandiego.org.
Junipero Serra Museum
While Old Town San Diego teems with popular shops, restaurants and museums, its historic soul is best discovered by visiting its lesser-known sites. Here are nine hidden gems to visit in Old Town San Diego that tell tales of the significant moments in the region’s early California history. • The Old Presidio Historic Trail begins at the base of Presidio Hill at the corner of Mason and Juan Streets and ends at the Junipero Serra Museum. Spanish soldiers and families walked from the Spanish presidio two centuries ago to tend their gardens and livestock. Around 1820, families started to build houses beside their gardens along the trail, and “Old Town” was born. • The Pattie Memorial (also known as “Witches Tower”) was once used as a Spanish guardhouse and jail cell to hold an American named Sylvester Pattie. A fur trapper who was accused of being a Spanish spy, Pattie died in 1828 while imprisoned at the presidio and is credited as the “first American buried in California soil.” A bronze memorial plaque in honor of Pattie and his trapper party was dedicated in 1931 on the site. The tower earned its “Witches Tower” nickname thanks to a brick pentagon design on the structure’s roof, the origins of which are unknown. • A trio of statues on Presidio Hill provide insight into its early inhabitants. The Indian Statue is an expressive statue of a Kumeyaay brave that honors the native peoples of Alta California, while the Padre Statue, a bronze statue of Father Junípero Serra who established California’s 21 missions, recognizes the Spanish missionaries. The third statue of a Mexican Vaquero (cowboy) commemorates the early Mexican settlers to the region. • Located on the grounds just below the Junipero Serra Museum, the Serra Cross is one of San Diego’s most prominent landmarks. Built in 1913 with tiles excavated from the site of the original presidio and mission, the cross is a monument to Father Junípero Serra and the first Spanish colonists to the region. • Silent for many years, El Jupiter is an old brass cannon cast in 1783 in Manila that was once part of the Spanish
defenses of San Diego. Displayed at the Serra Museum, the Spanish cannon faces seaward from the earthworks at the military crest of Presidio Hill. Guests can spot the Spanish royal crest on the cannon’s barrel above the trunnions. • The El Camino Real bell marks the beginning of the Kings Highway that links California’s 21 missions and presidios. Set in front of Old Town’s historic El Campo Santo Cemetery, the bell has been in place since the early 1900s to mark the original route of the 700-mile-long “El Camino Real” from San Diego to Sonoma in northern California. • Dating back to 1849, El Campo Santo Cemetery provides a glimpse into Old Town’s past. There are 477 bodies buried in the cemetery, and some are buried just outside its gate beneath the sidewalk and San Diego Avenue. Guests can spot the burial site from the brass “Grave Site” markers. Said to be haunted, the cemetery’s most widely seen apparition is a Native or Hispanic man dressed in 19th century clothing who floats above the ground. • Casa de Carrillo is the oldest surviving house and oldest adobe building in San Diego; it is also one of the first houses built below Presidio Hill that made up the original Old Town settlement. Presidio Comandante Francisco Maria Ruiz built the house next to his pear garden in 1821 for his close relative and fellow soldier, Joaquin Carrillo, and his large family. Today, Casa de Carrillo is the clubhouse for the Presidio Hills Golf Course. • Built in 1830, the San Diego House was originally a small adobe saloon and provision store, owned by Richard Freeman and Allen Light, the first two AfricanAmericans to settle in Old Town. Set along Plaza De Las Armas, guests can step back into the 1800s and an old-school general store featuring rows and rows of jars filled with teas, herbs and spices. Today, the San Diego House is the setting for American House Coffee & Tea. Information on events and activities related to the 250th commemoration of Old Town San Diego will be posted throughout the year at oldtownsandiego. org/250th. AB | March - April 2019 33
EAST VALLEY UPDATE TOURISM
Patio-perfect Valley residents and event planners are capitalizing on the backyard-style dining trend.
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dining By ERIN THORBURN
W
Chelseas Kitchen
hat do Valley hot spots like the Monastery, Olive and Ivy, Blasted Barley, Noodles A GoGo, Wandering Donkey and The Yard have in common? These local patio-friendly eateries, bars and food trucks are simply a sample of the latest trend in delighting event participants. And guess who’s taking advantage? Event planners are capitalizing on the casual, delectable, and unique offerings of outdoor dining. And why shouldn’t they? What better backdrop for an event than a vibrant cityscape, view of the Sonoran desert or a backyard-style dining venue? Although the appeal of outdoor entertaining certainly isn’t new, perhaps the full utilization of space and vision is. The latest in backyard-type eateries isn’t simply focusing on food — there’s the valuable inclusion of experiential opportunities. “By and large, people are tired of being trapped within the same four walls,” says Kerrell Dunsmore, owner and CEO the next great event and a member of the Arizona Chapter of the Hospitality Sales and Marketing Association International. “Now, the focus is shifting toward rotating local/seasonal menus, farm-to-table, and enhanced — yet affordable — dining experiences. For example, brunching has become a verb, and extensive wines-by-theglass menus are proving to be lucrative.” AB | March - April 2019 35
EAST VALLEY UPDATE TOURISM Getting out “Many visitors sit in meetings all day,” echoes HSMAI member Keri Mahoney, director of group sales for Fox Restaurant Concepts, “and many of our venues offer a reprieve in the form of fun, relaxed atmospheres to enjoy after a hard day’s work.” Although there aren’t specific statistics on how long the average event participant remains seated, the average American spends more than eight hours a day sitting. Places such as Fox Restaurant Concepts’ Olive & Ivy offers weary sitters a patio equipped with water features, seven fire pits and 4,000 square feet in which to roam. Similarly, The Yard offers visitors experience in the form of gaming opportunities. “After a long day, event goers can play ping pong, shuffleboard, and be relaxed and carefree,” Mahoney says. “It’s essentially an adult playground.” But that’s not the only trend changing the face of Valley events and dining. “The craft beer and distilling scenes have also exploded in recent years, directing a ton of traffic to nontraditional dining venues,” Dunsmore says. “The Brewmaster’s Room and patio at San Tan Brewing in Old Town Chandler is an example. And, many breweries that don’t have full kitchens will feature a rotating schedule of food trucks to draw additional traffic to their establishments.” Speaking of food trucks — if you’ve noticed more of them cruising or parked
throughout the Valley, you’re not alone. “In my community of Ahwatukee, there is a monthly food truck event that draws thousands of people,” Dunsmore says. “It’s outdoor, family friendly and boasts a variety of options, from specialty coffee trucks to waffle and steamed-bun trucks. From an event-planning perspective, it’s a great alternative to a traditional dining experience, and again — no walls.” Fun and convenience In addition to the absence of walls, there’s another reason event planners may be more in favor of food trucks — convenience. The essence of food trucks is to eliminate travel, while simultaneously offering a unique experience. And the experience or occasion can vary wildly — weddings, sports venues, corporate events and more. These mobile masterpieces of munchies are also multi-faceted in what and how they can serve guests. For example, the Fox Restaurant Concepts food truck, aptly named “The Rocket,” weighs an impressive 26,000 pounds and can serve a multitude of hungry people. With signature offerings from Fox Restaurant Concepts’ brick-andmortar North Italia, The Rocket comes in the form of a semi with a 700-degree wood-burning pizza oven. “The Rocket allows us to bring a kitchen to a venue,” Mahoney says. “It can come directly on-site and has become a true
amenity for event planning.” Whether an event is best served at a backyard, patio-style bistro, or on site amidst a cluster of food trucks (or one gargantuan pizza-producing semi), one thing is clear — Arizona is perfectly positioned for all of the above. “Several of our venues have misters for our hotter months and heaters for the rare chilly season,” Mahoney says. “And, we offer the expertise of special events managers at each of our locations to assist our guests from start to finish to create the perfect experience.” Dunsmore agrees that there are many benefits that accompany the latest trends. “Our climate is what allows so many of our non-traditional venues to thrive,” Dunsmore says. “We can offer indoor/ outdoor space for most of the year, and chances are, your food truck event will not get rained out. We also have a thriving community of independent chefs who love to showcase our local ingredients.” The next time event participants are in need of fresh air, dynamic experiences, and beautiful scenery, simply turn your attention to the patio or a kitchen on four wheels — and, voila.
Kerrell Dunsmore
Keri Mahoney
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WORLD GLOBAL CHAMBER
Global Chamber empowers Arizona companies with the information and connections needed to showcase their business on the global stage By MICHAEL GOSSIE
O
ver the last 10 years, Doug Bruhnke has seen Arizona develop a better understanding of business and a better understanding of the world. “The good news is that Arizona has made strides in building an environment that is more business-friendly,” says the founder and CEO of Global Chamber. “The bad news is that almost every other state is doing the same thing. The competition is tough.” The most positive agent of change Bruhnke says he has seen has been with Arizona’s cities, whose responsiveness to opportunities has impressed the global business expert. “An example is the City of Surprise, which started going to Toronto and not only connecting with Canadian companies and opportunities, but tapping into European and Asian opportunities through their connections in Toronto,” Bruhnke says. “The proactivity and reactivity of the cities — like Scottsdale, Surprise and Phoenix — is very exciting and bodes very well for Arizona.” Also boding well for Arizona is the presence of Global Chamber Phoenix, which hopes to make doing business globally as easy as doing business locally. Az Business talked with Bruhnke about how Arizona fits into the global economy in 2019 and beyond.
AB: Do you view the Global Chamber more as a business organization or networking organization? DB: We are not a social organization. We are a business connecting organization, so we connect our members to people who can help them grow their businesses and we connect them to opportunities. So we are continually talking with our members about the hot opportunities in business, what are things going on that they should be thinking about above and beyond the things they are currently doing. It could be an industry, it could be a product, it could be a service or it could be a region of the world. Our daily adventure is to connect people first and absorb what is going on around the world so we are ready to make that next introduction.
Az Business: What is the mission of the global chamber? Doug Bruhnke: We know that it can be easy to do business with someone who is our neighbor, but as soon as you start talking about another city or another country, it becomes a lot more difficult. Our mission is to make that process as easy as possible. To be able to do that effectively, you have to have better information about cultures, logistics, legal issues, banking issues. Most companies doing business on the local level don’t have access to those resources or that information, but we do.
AB: What are some of the challenges companies face when going global? DB: We just held an event on infrastructure and when you think about infrastructure in the United States, you’re often thinking of replacing something. But in a lot of these countries, it’s fresh, whether it’s communication systems, transportation systems, water or other basic fundamental infrastructure. Many times, it’s greenfield in these countries. The good news is that there is a lot happening in the world. The bad news is that 85 percent of that activity is happening outside of the United States, so if companies just want to stay in Arizona or stay in the U.S., they’re missing out on 85 percent of the business opportunities that are out there.
AB: How do you build expertise on all the different cultures and business environments that a company looking to go global might face? DB: We do that by having people there. For example, our person in Tokyo has been doing business for 35 or 40 years and has deep connections there, so he knows Japan and he knows how business works in Japan. Multiply that by 525 cities and you have a network of people that can help a company do business globally. 38
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AB: Where are the hot opportunities for Arizona companies heading into 2019 and beyond? DB: There are certainly a lot of opportunities here — in the state, the region, the hemisphere — and a lot of those opportunities are technology-driven and many are industrial-driven. When you start expanding the world, there is a spectrum of things that are happening almost everywhere, like financial technology and cannabis, which are both seeing tremendous growth.
AB: How do your members learn about that 85 percent of the opportunities that might be available? DB: One of the ways we are tapped into those opportunities is that we have partners. We not only have our own people, but we
VIEW GOING GLOBAL: “It’s hard to sell
globally, but it can be easier if you have connections,” says Doug Bruhnke, founder and CEO for Global Chamber Phoenix. “The hard part becomes asking the question, ‘What should I do?” (Photo by Mike Mertes, AZ Big Media) AB | March - April 2019 39
GLOBAL CHAMBER
partner with groups like the United States Trade and Development Agency. They do reverse trade missions, so they go out into the world and find infrastructure projects — energy, communications, transportation — that these countries have available. The reverse trade mission concept of it is that they bring those people here, so it allows small businesses to interact with them, understand what the opportunities are and then bid for them. The opportunities are gift-wrapped and put right in front of us. That’s the concept of what we try to do at Global Chamber — gift-wrap opportunities. They’re not all gift wrapped, but giving focused information to members helps them find opportunities that might not otherwise have been available to them. AB: Are there particular areas of the world in which Arizona companies are finding global success? DB: There are some and some it relates to countries with whom we had longstanding relationships — Mexico, Canada, Germany, the United Kingdom and Malaysia. Most people might not necessarily think about Malaysia, but Malaysia is a great destination for semiconductors and Arizona has a lot of activity in the semiconductor sector. Arizona has a certain capability in electronic components, aerospace and semiconductors, so industrial connections drive Arizona’s global success in those industries. AB: Are Arizona’s industrial companies finding the most success on a global scale? DB: Arizona’s No. 1 export is electronic components. So if we break it down, industrial is still No. 1 and a lot of that is aerospace for Arizona. Technology — both products and services — is another major export for Arizona. Then, some of the old things — Arizona’s traditional five Cs like cotton, citrus, copper — are still part of what Arizona is all about. Copper is still a key driver of Arizona’s economy, but not like it was 30 or 40 years ago. AB: Do you see any Arizona companies that are making an impact on a global scale? DB: It’s surprising how many there are. A company like Gilbert-based Wisdom Natural Brands, which makes SweetLeaf sweetener and stevia products, goes almost everywhere. They have sales all over the world. They were named Exporter of the Year a couple years ago. Joel Barthelemy created GlobalMed, a telemedicine company with a product that can be sold pretty much anywhere. QDI Surfaces Porcelain Tile & Stone is the largest importer of travertine in the United States. We utilize the success of companies like Wisdom Natural Brands, GlobalMed and QDI by having them speak to our members and tell their stories and sharing the secrets of their global success. AB: Who would benefit from joining the Global Chamber? DB: If someone is already exporting, that’s a no-brainer. Typically, you’re not exporting to 195 countries. There’s typically something you still need to learn. The company we always love to see is the one who is really not exporting yet, but feel their product is export-ready. We love working with them. A lot of times they jump in and make mistakes and that’s the natural 40
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way of becoming an accidental global company. Ideally, we like to get them before they jump in because we can get them set up strategically with whatever they need in terms of resources, contacts or just taking a step back and asking, “Where are we going to be most successful?” AB: How have the changes in tariffs impacted your members? DB: It’s a real problem. Some of our members have been impacted millions of dollars already. Riad Nizam, president of Phoenix-based Master Electronics, recently spoke to our members and said his company has multiple-million-dollars in tariffs. He is taking the strategy of not raising prices even though his costs are going up in the hopes of gaining market share when his competitors are forced to raise their prices. Whether it’s the fear of things getting worse or the actuality of what is happening today, there is a lot of concern over tariffs. AB: What are your long-term goals for the Global Chamber? DB: In the Global Chamber’s four years of life, the goal has been to be everywhere and we now have 525 chapters around the world. In all of those cities, we’ve never been stumped. Through our own network, we are always able to piece together a solution. The vision is to make international business as easy as selling across the street is a vision that continues.
GLOBAL CHAMBER WHAT IT IS: Global Chamber is a unique, growing and collaborating community of CEOs, executives and leaders in 525 metro regions around the world focused on growing business and advancing business success. MISSION: Accelerate cross-border trade and investment by engaging top executives and regional leaders with connections and information to grow business, increase community success and change the world. WHAT IT DOES: Global Chamber helps businesses with these regional and global challenges: • Accelerating success of companies by helping them move more quickly. • Connecting more companies to cross metro and border growth opportunities. • Collaborating for more success through our ‘global tribe’ - it takes a village! • Engaging more students in global career opportunities with jobs and internships. • Facilitating the process for professionals and executives to connect with global careers. • Bringing sustainable and entrepreneurial approaches to cross-border commerce. LEARN MORE: globalchamber.org
AWAR DS
SAVE THE DATE MAY 2, 2019
J W M A R R IOT T CA MELBACK IN N
Industry Leaders of Arizona celebrates top professionals in key industries throughout Arizona. All companies are Arizona-based or have a significant presence in the state. Industries are weighted and judged by industry standards for revenue, growth, employee count and financial health. All award winners and honorable mentions will be celebrated at an annual awards ceremony in May.
2 019 I L OA F E AT U R E D INDUSTRIES
Healthcare Hospitality Logistics/Distribution Financial Services Software
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GLOBAL CHAMBER
TAKING ON THE WORLD Here’s how Valley businesses ‘accidentally’ become thriving global companies By ALEXA BUECHLER When Robert Chappell was diagnosed with Repetitive Strain Injury from constantly typing, he looked for any way to communicate and continue his work as a software engineer. He purchased Dragon Naturally Speaking, a voice notation software. It helped him at first, but eventually he lost his voice due to overuse. He looked for an eye-tracking device, but it moved slow, required two computers and used an outdated system. Chappell invented the first eye tracking mouse that moved like a traditional hand mouse and started Mesa-based company EyeTech Digital Systems in 1996. Two years later, the company exhibited its product at a technology conference. Overseas attendees displayed an interest in the company because it could improve the lives of people with ALS — a progressive neurodegenerative disease that affects the nerve cells and the spinal cord. Many of those diagnosed with ALS lose control over their muscles, including their vocal cords. So the company that started with one man’s invention expanded globally. Now, the company helps people with various disabilities in more than 30 countries with more than 10,000 users worldwide. “I’ve seen the technology evolve from niche application to more consumer devices,” said Keith Jackson, director of sales and marketing for EyeTech Digital Systems. NOT ALONE EyeTech Digital Systems isn’t the only Arizona-based international company to start small and fall into the opportunity to take the business outside of U.S. borders. Another is Gilbert-based Wisdom Natural Brands, the parent company to Sweetleaf Stevia. 42
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In 1981, James May was introduced to the stevia leaf in Paraguay. He and his wife, Carol, sold their worldly possessions, minus their house and one car, and James made a formula that made the leaf into a natural sweetener. He sold the product to local markets and began working out of his garage in Scottsdale. They eventually expanded globally. “Victoria Beckham of Spice Girls fame accompanied her rock star soccer player husband when he moved to Los Angeles to play for the Los Angeles Galaxy,” said Carol May, CEO of Wisdom Natural Brands. “She was introduced to our Sweetleaf Stevia products and missed them when the family returned to London.” Beckham was unable to find the Wisdom Natural Brands products on the shelves where she shopped in England. Feeling frustrated, she put out a query to her 20 million Facebook fans, telling them she fell in love with the product and wondered where she could buy it in London. “Needless to say,” May said. “We soon began selling in the UK.” Now, the company is in more than 30 countries and plans on entering the Chinese and Indian markets in 2019. Doug Bruhnke, CEO and founder of Global Chamber, said a high percentage of initial foreign sales aren’t planned by the businesses. “A company that accidentally goes global is typically a company that has a product that has a global interest, but they wouldn’t know it because they haven’t been to Kazakhstan or Germany to pitch it because they’ve been busy pitching here,” he said.
Doug Bruhnke
Hugh Hallman
Keith Jackson
Carol May
Rob Millar
Luis Ramirez AB | March - April 2019 43
GLOBAL CHAMBER “Because of social media, they can be doing sales in Mexico and beyond without really investing in the internal infrastructure up front to manage those international sales.”
— Luis Ramirez Bruhnke said other countries will usually take notice of a product because of online sites and international customers. “Suddenly, someone in that foreign country knows about the product, and they want it, too,” he said. GOING GLOBAL Luis Ramirez, president of Ramirez Advisors International, helps companies with international business in the United States and Mexico. “There are a lot of mom and pop shops or micro companies in Arizona that are already doing a lot of international business, and they simply don’t know it,” he said. Ramirez said Arizona has a large number of Mexican visitors who travel throughout Arizona, buy goods or services and take them back home. Eventually, a customer will return to their home country and want to receive a certain good or product, so they will ask the business if they have any way of delivering it. “And that’s where, I think, companies start delving into the international business, almost by demand of the customer, not necessarily as a plan by a small company,” Ramirez said. Jackson said the City of Mesa opened its eyes to the export initiatives that the Greater Phoenix Economic Council provides. “They’ve been a great resource, promoting us to different companies here locally,” he said. “They’ve actually helped us export to some countries we haven’t really done a lot of business in before.” Rob Millar, acting economic development director for the City of Scottsdale, said the position of Scottsdale within the southwest region helps with international exposure. “There’s a lot of value being in a market that has such international exposure with almost 9 million visitors a year that come to Scottsdale for vacation purposes, but then return to where they live — whether that be nationally or internationally — and having that exposure while they’re here is built-in advertising, built-in exposure,” Millar said. 44
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CLIMATE HELPS He also said there is a beauty in convenience. “We have an airport with direct access,” Millar said. “We don’t have harsh, inclement weather that can disrupt business operations like snow or tornadoes.” Ramirez said Arizona’s proximity to Mexico gives businesses an advantage. “You have this continual inflow and outflow of visitors from Mexico,” he said. “In Arizona last year, we had almost 25 and a half million people coming in, of which we estimate that about two-thirds to threequarters of them were Mexican visitors.” Hugh Hallman, the former mayor of Tempe and an attorney at Berry Riddell, said the location of the business is less important to the international market than the Internet. “The barriers to entry for who can make sales anywhere on the globe have been eliminated by the Internet,” Hallman said. He also said small businesses could have already engaged in international markets because of their communication skills. “There are many websites that small companies build here that cater to Spanish-language speakers,” he said. “They already have a sense of reaching out to people who speak a different language.” Once people know how to craft an Internet message for another country’s business environment, the transition to other areas of the world, such as Europe and Asia, becomes seamless, Hallman said. Jackson said EyeTech Digital Systems’ partnership with Microsoft enables them to translate their technology to various languages faster, which is a huge help in accessing the international markets. Because of the Internet, businesses can find any information they need about doing business with foreign countries. For example, he said, how to deal with taxes. IMPACT OF TECHNOLOGY Ramirez said the digital age has influenced the overall growth in international business. “Because of social media, they can be doing sales in Mexico and beyond
without really investing in the internal infrastructure up front to manage those international sales,” he said. Jackson said social media allows customers to share their stories about how their eye-tracking devices have changed their life. “It’s a big initiative for us, spreading word of mouth,” he said. “The exposure through social media is phenomenal.” Online services have also affected the ease of growing a business. “(Delivery services) have become the enablers for a lot of small companies that on their own wouldn’t be able to do it,” Ramirez said. For example, Ramirez said, business owners can go online and have FedEx come by the office, warehouse or manufacturing center, pick up the package and take it to the customer. Most of them will also ensure the product meets customs requirements for going over the border. EyeTech Digital Systems was able to find success in the international market because they connected with international distributors and manufacturers at conferences, such as the Consumer Electronic Show, but they also displayed how well their business was doing locally. “Every country looks at your success in your backyard,” Jackson said. “How well are you doing in the U.S.?” Now, the only areas EyeTech Digital Systems hasn’t reached is China and India. Most of its business is with Europe, Canada, Mexico and Australia. Last year, the company started initiatives in Germany and Japan. It’s also doing a lot more in the Middle East, Israel and Qatar. “Our technology is funded through Medicare, Medicaid, insurances or governments throughout the world because this provides a life-saving capability for those who are paralyzed and can’t talk,” Jackson said. “They can actually type with their eyes to communicate.” Jackson advised small companies to find the right partners who will get the exposure needed to make an impact and get in front of the people who matter in different countries. “Show them how it can change someone’s life,” Jackson said.
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TOP 100 LAWYERS IN ARIZONA
HERE ARE LITIGATION TRENDS YOU NEED TO WATCH IN 2019
W
ith 2019 now well underway and with the announcement of the Top 100 Lawyers in Arizona in this issue of Az Business magazine, it is worth taking a few minutes to discuss current Arizona litigation trends, as well as those that are expected to continue for the remainder of the year and into next. Parties are more willing than in past years to take steps early in disputes to resolve their differences. Those early settlement efforts include mediations with third party neutrals, direct negotiations between the parties’ decision makers, and settlement offers sent by counsel. We anticipate that this trend will continue.  Many clients have learned from past experiences that protracted litigation is expensive and results are uncertain. Consequently, clients have analyzed their risk-reward positions in a case, and the corresponding benefits of early settlement, by taking a holistic view of litigation including by presentvaluing the expense that is otherwise spread out over a period of years. Additionally, the volatility of the markets and uncertainty associated with the economy suggest that there will be an 46
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increase in payment defaults and creditor-debtor litigation. Economic downturns invariably spawn this type of litigation. In Arizona, this trend may lead to increased foreclosures (including through the expedited process that occurs in real property foreclosures involving deeds of trust), commercial and residential evictions, and bankruptcy cases. Whether a downturn occurs, and if so to what degree, remains to be seen. Relatedly, lenders and their counsel are increasingly asking courts to appoint receivers to take possession of loan collateral (i.e., away from debtors) after the filing of a lawsuit and as an interim step before the completion of a foreclosure. Also, we expect that courts will continue the trend of innovative programs designed to shorten the length of lawsuits and to make the work and expense associated with a case
proportional to the needs of the case. Arizona’s trial courts now have rules which scale formal discovery to the amount claimed in the case, and which take into account the amount at issue and the parties’ relative resources. Federal courts have taken a similar approach. In that regard, the United States District Court for the District of Arizona continues to implement and refine a Mandatory Initial Discovery Pilot Project. This pilot project is noteworthy for, among other things, its attempt to speed up the progress of cases and to limit litigation expenses by requiring the parties to disclose relevant information for each sides’ claims and defenses at the beginning of a case. The effectiveness of this approach, and whether the pilot program will become permanent, remains to be seen. Last, we are seeing an increase in consumer-based class actions being filed in Arizona, as well intensive multi-district litigation whereby multiple cases from various other states are consolidated in front of a federal judge in Arizona. The increase in laws and rules over the past several years which regulate how businesses must treat consumers and their data — including privacy laws, financial disclosure requirements, and restrictions on the means and methods of communicating with consumers — have contributed to this trend.
Benjamin C. Nielsen Law
John M. O’Neal is chair of the Commercial Litigation Group at Quarles & Brady in Phoenix. Benjamin C. Nielsen is an associate in the group.
John M. O’Neal Law AB | March - April 2019 47
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2019 By MICHAEL GOSSIE
I
f you’re wondering what it takes to be one of the Top 100 Lawyers in Arizona, experts say you might want to start subscribing to the “it takes a village” philosophy. “Find and develop mentors and those who will serve as your champions,” says Leonardo Loo, Phoenix office managing partner for Quarles & Brady and a member of the firm’s Business Law, Finance and International Services Law practice groups. “Rarely is success achieved without the assistance and influence of others.” Loo is among this year’s Top 100 Lawyers in Arizona. The prestigious group is chosen by Az Business magazine’s editorial team in collaboration with industry experts. The attorneys were selected a pool of more than 2,000 of the state’s most talented and successful attorneys. Selections are based on each lawyer’s professional success and ratings, impact on his or her law firm, impact on the communities she/he serves and impact on the legal profession. Do you know an attorney who should be considered for the 2020 list? Email Editor in Chief Michael Gossie at michael.gossie@azbigmedia.com.
In memoriam John Bouma, who chaired Snell & Wilmer for 32 years and was one of Arizona’s most influential legal figures, died in January at the age of 82. Bouma was one of Az Business magazine’s Top 100 Lawyers of 2018. Snell & Wilmer appointed Bouma chairman in 1983 and he helped the firm expand beyond Phoenix. The firm now includes more than 400 attorneys across 11 offices in the U.S. and Mexico. He was also former president of the State Bar of Arizona and co-founder of the Equal Justice Foundation, which provides legal services for the poor.
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TOP 100 LAWYERS 2019
LYNNE C. ADAMS
SHAWN K. AIKEN
CINDY C. ALBRACHT-CROGAN
KEITH A. BERKSHIRE
ANDREW ABRAHAM President and shareholder Burch & Cracchiolo
Practice areas: Real estate law, real estate litigation, commercial litigation Business advice: “Stick to the basics-listen to what your customers want, be timely and responsive. Business relationships are built on trust. Once you establish that relationship, nurture it. Be proactive. Put your clients interests ahead of all else, including your own.”
THOMAS C. ARENDT
LYNNE C. ADAMS Partner // Osborn Maledon Practice areas: Education law, representing charter schools, school districts, community colleges and universities SHAWN K. AIKEN Shareholder // Aiken Schenk Hawkins & Ricciardi Practice areas: Commercial litigation, mediation, arbitration
CHARLES L. “CHICK” ARNOLD
CINDY C. ALBRACHT-CROGAN Partner // Cohen Dowd Quigley Practice areas: Business litigation MARK E. BARKER
THOMAS C. ARENDT Member // Jennings Strouss Practice areas: Acquisition and development, leasing, and real estate workouts and foreclosures
HILARY L. BARNES
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STEVEN N. BERGER
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CHARLES L. “CHICK” ARNOLD Senior partner // Frazer Ryan Goldberg & Arnold Practice areas: Mental health law, elder law, estate planning
MARK E. BARKER Partner // Jennings Haug Cunningham Practice areas: Business law, banking and finance, construction law, surety and fidelity law, commercial litigation HILARY L. BARNES Member // Allen Barnes & Jones Practice areas: Corporate and consumer bankruptcy STEVEN N. BERGER Shareholder // Engelman Berger Practice areas: Bankruptcy and reorganization, creditor’s rights, loan workouts, business restructurings, business and real estate disputes, bmediation KEITH A. BERKSHIRE Shareholder Berkshire Law Office Practice areas: Family law, appellate law
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TOP 100 LAWYERS 2019 LEO BEUS Co-founder // Beus Gilbert Practice areas: Accountant and lawyer liability, intellectual property, litigation, officer and director liability, securities and investment fraud MAUREEN BEYERS Partner // Beyers Farrell Practice areas: Business litigation and arbitration FAY W. BIDLACK Member // Jennings Strouss Practice areas: Business and real estate transactions, restructuring and bankruptcy, creditor’s rights, commercial litigation
LEO BEUS
MAUREEN BEYERS
BRIAN H. BLANEY Chair and shareholder, Phoenix Corporate Practice Greenberg Traurig Practice areas: Capital markets mergers and acquisitions, private equity and corporate NIK BOCA Managing attorney Cantor Law Group Practice areas: Family and juvenile law
FAY W. BIDLACK
BRIAN H. BLANEY
NIK BOCA
GARLAND A. BROWN, JR.
ROBIN E. BURGESS
ANNE CHAPMAN
ROBERT M. CHARLES, JR.
GARLAND A. BROWN, JR. Co-founder // Weiss Brown Practice areas: Technology law, intellectual property ROBIN E. BURGESS Shareholder // Sanders & Parks Practice areas: Healthcare, medical malpractice, product liability, professional liability, municipal liability
REBECCA LYNNE BURNHAM
REBECCA LYNNE BURNHAM
ANNE CHAPMAN Attorney // Mitchell | Stein | Carey | Chapman Practice area: White-collar criminal defense
Practice areas: Real estate, land development, land use, infrastructure finance, sports facilities and entertainment venues
ROBERT M. CHARLES, JR. Partner // Lewis Roca Rothgerber Christie Practice areas: Business bankruptcy, commercial lawsuits, business transactions
Of counsel, Real Estate Practice // Greenberg Traurig
Business advice: “Excellence in execution is a given at the top levels of this profession. In addition to serving the needs of the client today, leading practitioners also keep a close watch on the horizon, anticipating change and making the adjustments necessary to be prepared to address it when it comes.”
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CONGRATULATIONS on being named a top 100 lawyer by AzBusiness Magazine
Wilenchik & Bartness, an AV Rated Preeminent firm since its founding in 1991
when Dennis Wilenchik left a senior partnership at Squire Patton Boggs to form the ďŹ rm, is pleased to congratulate Dennis Wilenchik on being named a Top 100 Lawyer by AzBusiness and to further congratulate his son John D. (Jack) Wilenchik on being a Super Lawyer this year, as well. The ďŹ rm continues to provide aggressive, reasoned counsel to individuals and companies of all sizes in regard to complex federal, state and criminal litigations, and congratulates the other lawyers selected, as well.
2019
Dennis Wilenchik Attorney at Law The Wilenchik & Bartness Building 2810 North Third Street Phoenix, Arizona 85004
P 602-606-2810 | F 602-606-2811 www.wb-law.com | diw@wb-law.com
TOP 100 LAWYERS 2019
JOHN J. CHECKETT
JOHN J. CHECKETT Founder // The Checkett Law Firm Practice areas: Complex civil litigation and health care
JOSEPH T. CLEES
GEORGE C. CHEN Partner and board member // Bryan Cave Leighton Paisner Practice areas: Intellectual property, including patents, copyrights, trademarks and trade secrets
JOSEPH T. CLEES
JOHN R. CLEMENCY Shareholder // Polsinelli Practice areas: Bankruptcy and financial restructuring, bankruptcy litigation, loan enforcement and creditor’s rights
Practice areas: Labor and employment counseling, labor relations, employment law, litigation, trade secrets, unfair competition
JOHN L. CONDREY Partner // Gordon & Rees Practice areas: Construction, insurance, environmental/toxic tort, tort and product liability, employment law, professional liability defense, commercial litigation
Shareholder // Ogletree Deakins
Business advice: “Be humble and caring and challenge the status quo. Listen very carefully to your clients, colleagues and competitors. Recognize your limitations and compensate by surrounding yourself with the best and most diverse talent — then get out of their way.”
JOHN L. CONDREY
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JENNIFER CRANSTON
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JENNIFER CRANSTON Shareholder and member of the board of directors // Gallagher & Kennedy Practice areas: Condemnation and valuation, insurance, public utilities
VAUGHN A. CRAWFORD
JOHN R. CLEMENCY
GEORGE C. CHEN
BARBARA J. DAWSON
VAUGHN A. CRAWFORD Partner // Snell & Wilmer Practice areas: Class action litigation, personal injury, pharmaceuticals and medical devices, product liability litigation, professional liability litigation BARBARA J. DAWSON Partner // Snell & Wilmer Practice areas: Class action litigation, commercial litigation, financial services litigation, internal investigations and regulatory compliance, SEC reporting and corporate governance WILLIAM M. DEMLONG Senior member // The Cavanagh Law Firm Practice areas: Litigation, insurance coverage, bad faith litigation, products liability, personal injury JOHN E. DEWULF Partner // Coppersmith Brockelman Practice areas: Commercial litigation, securities litigation, bet-thecompany litigation
WILLIAM M. DEMLONG
JOHN E. DEWULF
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TOP 100 LAWYERS 2019
JOHN ALAN DORAN
SUSAN M. FREEMAN
DANIEL G. DOWD
GARRICK L. GALLAGHER
MICHAEL L. GALLAGHER
LAUREN L. GARNER
KAREN S. GAYLORD
GRADY GAMMAGE, JR.
LEAH S. FREED
JOHN ALAN DORAN Member // Sherman & Howard Practice areas: Labor and employment, litigation, trials, appeals DANIEL G. DOWD Partner and president // Cohen Dowd Quigley Practice areas: Commercial litigation, administrative disputes, internal investigations
GARRICK L. GALLAGHER Owner and director // Sanders & Parks Practice areas: Personal injury, mass torts, insurance litigation and voverage
SUSAN M. FREEMAN Partner // Lewis Roca Rothgerber Christie Practice areas: Civil appeals and business bankruptcy
MICHAEL L. GALLAGHER Co-founding partner, shareholder and member of the board of directors Gallagher & Kennedy Practice areas: Sports law, products liability, litigation
LEAH S. FREED Office managing shareholder Ogletree Deakins Practice areas: Management-side labor and employment law
GRADY GAMMAGE, JR. Founding member // Gammage & Burnham Practice areas: Government relations and administrative law, land use, real estate, public-private partnerships
JONATHAN FRUTKIN Principal // Radix Law
LAUREN L. GARNER Partner // Jaburg Wilk Practice areas: Probate and trust litigation and mediation
Practice areas: Business law and commercial litigation Business advice: “Don’t be afraid to try something new or take the lead. As a lawyer, your clients are looking to you as the assertive voice of reason. Do your research, work hard and exceed their expectations. You’ll be rewarded in the end.” 56
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JONATHAN FRUTKIN
KAREN S. GAYLORD Partner // Jennings Haug Cunningham Practice areas: Environmental law and litigation, energy and energy regulatory law, water law
Congratulations to our partner, Brad Shwer Recognized as one of Arizona’s Top 100 Lawyers by Az Business magazine
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TOP 100 LAWYERS 2019
JOHN T. GILBERT Partner // Radix Law Practice areas: Commercial litigation, business and real estate law and business acquisitions PAUL E. GILBERT Co-founder // Beus Gilbert Practice areas: Transactions and litigation involving real estate development, zoning and land use law
JOHN T. GILBERT
PAUL E. GILBERT
YALE F. GOLDBERG
AMY J. GITTLER
Principal // Jackson Lewis
JAMES GOODNOW
SUSAN D. GOODWIN
STACEY F. GOTTLIEB
TIMOTHY R. HYLAND
CAROLYN J. JOHNSEN
JOE KANEFIELD
Practice areas: Employment law and labor counseling and litigation, wage and hour, non-competes and unfair competition Business advice: “Don’t allow other people to set limits on what you can do. With hard work, you can accomplish whatever you set as your goal.” YALE F. GOLDBERG Senior partner // Frazer Ryan Goldberg & Arnold Practice areas: Federal and state tax controversy, civil and criminal tax litigation JAMES GOODNOW President and managing partner // Fennemore Craig Practice areas: Business litigation, commercial contingency litigation, litigation
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AMY J. GITTLER
SUSAN D. GOODWIN Member // Gust Rosenfeld Practice areas: Public and municipal law, land use, election law, construction law STACEY F. GOTTLIEB Of counsel // Cohen Dowd Quigley Practice areas: Complex commercial litigation, white-collar criminal defense TIMOTHY R. HYLAND Senior member // The Cavanagh Law Firm Practice areas: Insurance bad faith, insurance coverage, tort and civil litigation defense
CAROLYN J. JOHNSEN Member // Dickinson Wright Practice areas: Commercial bankruptcy, restructuring JOE KANEFIELD Partner // Ballard Spahr Practice areas: Government relations, regulatory affairs and contracting, political and election law, media and entertainment law
TOP 100 LAWYERS 2019
MICHAEL K. KENNEDY
GEOFFREY S. KERCSMAR
WILLIAM G. KLAIN
JOHN F. LOMAX, JR. Partner // Snell & Wilmer
Practice areas: Labor and employment, Native American affairs, energy and utilities Business advice: “Practicing law is a long and steep learning curve. Be patient and curious.”
JOHN F. LOMAX, JR.
MICHAEL K. KENNEDY Co-founding partner, shareholder and member of the board of directors Gallagher & Kennedy Practice areas: Business litigation, professional liability, sports law
LEONARDO LOO Phoenix office managing partner Quarles & Brady Practice areas: Mergers and acquisitions, commercial financing, international transactions, securities, general corporate law
GEOFFREY S. KERCSMAR Managing member // Kercsmar & Feltus Practice areas: Commercial litigation, intellectual property litigation
PATRICK MACQUEEN Founder and partner // MacQueen & Gottlieb Practice areas: Real estate transactional law and real estate litigation
WILLIAM G. KLAIN Partner // Lang & Klain Practice areas: Business litigation and appeals
GERALD MALTZ Shareholder and president // Miller Pitt Feldman & McAnally Practice areas: Business litigation
LEONARDO LOO
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PATRICK MACQUEEN
GERALD MALTZ
MICHAEL C. MANNING
MICHAEL C. MANNING Partner // Stinson Leonard Street Practice areas: Business litigation, antitrust, governance, risk and compliance, real estate litigation NICOLE MAROULAKOS GOODWIN Phoenix office managing shareholder // Greenberg Traurig Practice areas: Business litigation, financial services litigation, real estate litigation MICHELLE RAY MATHESON Partner // Matheson & Matheson Practice areas: Labor and employment, including wrongful termination, harassment, discrimination, retaliation, severance agreements, non-compete agreements and unpaid wage claims
NICOLE MAROULAKOS GOODWIN
MICHELLE RAY MATHESON
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TOP 100 LAWYERS 2019
JASON BARCLAY MORRIS
CHRISTINA M. NOYES Member // Gust Rosenfeld Practice areas: Business law, entity formation and structure, mergers and acquisitions, franchisor and franchisee transactional representation, trademark and copyright
Practice areas: Land use and zoning, real estate transactions, government affairs, liquor law, professional and business licensing
EDWARD F. NOVAK Shareholder // Polsinelli Practice areas: Government investigations, commercial litigation, healthcare litigation, attorney discipline, white-collar criminal defense
Partner // Withey Morris
JASON MORRIS
KAREN C. MCCONNELL
PAUL J. MCGOLDRICK
KAREN C. MCCONNELL Partner // Ballard Spahr Practice areas: Mergers and acquisitions, private equity, securities and capital markets
Business advice: “The most important advice I would offer is, the significance of relationships. Phoenix is a small town from a real estate prospective so your relationships and good reputation can help you advance, or will be the quickest path to your decline.” DOUGLAS C. NORTHUP Director, chair of Business Litigation Practice Group // Fennemore Craig Practice areas: Business litigation, commercial contingent fee litigation, insurance coverage for policyholders, business and personal injury tort litigation
RANDY NUSSBAUM Attorney Sacks Tierney Practice areas: Bankruptcy, debtor and creditor rights, trustee representation, commercial litigation, real estate law, construction litigation SHAWN OLLER Office managing shareholder // Littler Practice areas: Represents management and companies in all aspects of employment litigation arbitration and mediation
PAUL J. MCGOLDRICK Partner // Shorall McGoldrick Brinkmann Practice areas: Mediation, arbitration, civil litigation, personal injury, professional liability TRACY A. MILLER Shareholder // Ogletree Deakins Practice areas: Represents management in all facets of labor and employment law and civil rights PEDRO J. MIRANDA Office managing partner Squire Patton Boggs Practice areas: Public and infrastructure finance
TRACY A. MILLER
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DOUGLAS C. NORTHUP
CHRISTINA M. NOYES
RANDY NUSSBAUM
SHAWN OLLER
EDWARD F. NOVAK
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TOP 100 LAWYERS 2019 PAMELA OVERTON RISOLEO Shareholder, Litigation // Greenberg Traurig Practice areas: Class action litigation, products liability and mass tort, litigation, trial practice SCOTT I. PALUMBO Founding partner // Palumbo Wolfe & Palumbo Practice areas: Personal injury and wrongful death
PAMELA OVERTON RISOLEO
SCOTT I. PALUMBO
STEVEN D. PIDGEON
STEVEN D. PIDGEON Co-managing partner // DLA Piper Practice areas: Mergers and acquisitions, capital markets and general corporate STEVEN PLITT Senior member // The Cavanagh Law Firm Practice areas: Insurance law and insurance benefits, insurance litigation
STEVEN PLITT
JODY K. POKORSKI
JOSEPH P. RICHARDSON
CYNTHIA A. RICKETTS
THOMAS J. SALERNO
DARIN SENDER
JODY K. POKORSKI Partner // Snell & Wilmer Practice areas: Real estate acquisitions, development and dispositions, leasing, master-planned communities and subdivisions, project finance
STEPHANIE QUINCY Partner // Quarles & Brady
Practice areas: Labor and employment, trade secrets and unfair competition, financial institutions litigation, trade secrets Business advice: “Be a sponge – soak in everything about the partners you work with (and the partners you don’t), the firm’s clients, current events and both the legal and business communities locally, regionally and even nationally that you can. And, get a mentor, or even a few.”
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STEPHANIE QUINCY
JOSEPH P. RICHARDSON Member // Gammage & Burnham Practice areas: Business organizations and commercial transactions CYNTHIA A. RICKETTS Co-founding partner // Sacks Ricketts & Case Practice areas: Complex contract and commercial litigation, consumer class action defense
THOMAS J. SALERNO Partner // Stinson Leonard Street Practice areas: Bankruptcy and restructuring DARIN SENDER Founding partner and attorney // Sender Practice areas: Zoning and land use law
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TOP 100 LAWYERS 2019 BRADLEY SHWER Founding partner // Thorpe Shwer Practice areas: Business and commercial litigation, personal injury defense, franchise litigation, products liability
LEON SILVER Managing partner // Gordon & Rees
Practice areas: Commercial litigation, retail and hospitality, privacy, data and cybersecurity, securities litigation, employment litigation Business advice: “Whether you are putting on a case or trying to grow an office, you have to stick to the principles that you believe most important. You may fail, but you will find that failing on your own terms, teaches, while just doing what someone tells you to do holds little value.”
BRADLEY SHWER
K. THOMAS SLACK
WENDI A. SORENSEN
K. THOMAS SLACK Partner // Beale Micheaels Slack & Shughart Practice areas: Represents plaintiffs in catastrophic injury and wrongful death cases including trucking, automobile, railroad crossing and workplace accidents
E. JEFFREY WALSH Shareholder, commercial litigation // Greenberg Traurig Practice areas: Commercial litigation, construction law, real estate litigation, trial practice, arbitration and mediation
WENDI A. SORENSEN Shareholder // Burch & Cracchiolo Practice areas: Personal injury and wrongful death Litigation, mediation and arbitration
KATHLEEN L. WIENEKE Partner Wieneke Law Group Practice areas: Governmental liability defense, employment law
SHERYL A. SWEENEY Shareholder // Ryley Carlock & Applewhite Practice areas: Energy, water, environmental, electric utility and special taxing districts law
PAUL M. WEISER Managing shareholder, Arizona office // Buchalter Practice areas: Commercial real estate
CHRISTOPHER D. THOMAS Partner // Perkins Coie Practice areas: Environmental and natural resource permitting and related federal, state and administrative litigation DEBORA VERDIER Partner // Manning & Kass, Ellrod, Ramirez, Trester Practice areas: Employment lawdefense
LEON SILVER
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DEBORA VERDIER
E. JEFFREY WALSH
SHERYL A. SWEENEY
KATHLEEN L. WIENEKE
CHRISTOPHER D. THOMAS
PAUL M. WEISER
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TOP 100 LAWYERS 2019 SCOTT K. WEISS Attorney // Weiss Brown Practice areas: Corporate and securities, financing, mergers and acquisitions CHRISTINE WHALIN Partner and certified criminal law specialist // DM Cantor Practice areas: Criminal defense
CHRISTINE WHALIN
NANCY L. WHITE
SCOTT K. WEISS
DENNIS WILENCHIK
LAWRENCE E. WILK
JOYCE K. WRIGHT
CATHLEEN YU
KURT M. ZITZER
NANCY L. WHITE Partner // Steptoe Practice areas: Corporate, mergers and acquisitions, finance, insolvency and restructuring DENNIS WILENCHIK Member and manager Wilenchik & Bartness Practice areas: Complex civil litigation, business and real estate law, contract and business disputes, criminal law, civil and criminal appeals LAWRENCE E. WILK Shareholder // Jaburg Wilk Practice areas: Bankruptcy litigation, creditor’s rights, workouts, financial fraud, Ponzi schemes, real estate and foreclosure
MARK G. WORISCHECK
SUSAN M. WISSINK
Director, management committee member, chair of Fennemore Craig Foundation // Fennemore Craig
Practice areas: Corporate and mergers and acquisitions Business advice: “The best lawyers are not only smart and driven, but understand their client’s businesses and try to help their clients accomplish their goals. Also, the difference between a good lawyer and a great lawyer, in my opinion, is the great lawyer volunteers in the community to help those in need.”
SUSAN M. WISSINK
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MARK G. WORISCHECK Managing shareholder // Sanders & Parks Practice areas: Insurance coverage, aviation, personal injury JOYCE K. WRIGHT Partner // Snell & Wilmer Practice areas: Commercial real estate, corporate and finance transactions, zoning and land use, master-planned communities and subdivisions, renewable energy CATHLEEN YU Chair of Phoenix Business Law Practice Group and national Investor Services Team // Quarles & Brady Practice areas: Business law, investor services, mergers and acquisitions, taxexempt organizations, corporate governance and compliance, commercial contracting KURT M. ZITZER Partner // Meagher & Geer Practice areas: Insurance coverage, commercial litigation, professional liability
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ARTIZEN AT TH E CAM BY 2401 E AST CAM ELBACK ROAD
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SOARING TO
SOARING TO
NEW HEIGHTS 2019
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By ALYSSA TUFTS
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viation has always pushed boundaries and been at the forefront of innovation and progress. But a long-term development at Phoenix-Mesa Gateway Airport is expected to take innovation to a new level and revolutionize the way products are transported from the U.S. to Mexico. In turn, experts say the development will create thousands of jobs, provide economic opportunities for companies, and offer students another way to gain invaluable knowledge and experience. SkyBridge Arizona is a 360-acre, long-term development at Phoenix-Mesa Gateway Airport that will allow U.S. Customs and Border Protection and Mexican Customs officers to work side by side to jointly inspect and process shipments in preparation for international transit. “SkyBridge is a great asset to add to what we have at Phoenix-Mesa Gateway Airport,” says Ryan Smith, director, communications and government relations, Phoenix-Mesa Gateway Airport Authority. “We view Phoenix-Mesa Gateway Airport not as much as an airport, but as a large redevelopment project that just happens to have an airport. So when you look at a project like SkyBridge, with lots of acreage and direct access to three 10,000-foot runways, the possibilities are limitless as to what you can produce there and what can locate at SkyBridge.” 74
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According to Gov. Doug Ducey’s office, SkyBridge is a $230 million commercial development that will have 2 million square feet of warehouse space, 1 million square feet of office space, 800,000 square feet of air cargo operations, 900,000 square feet of light industrial and flex space, and 100,000 square feet of retail and restaurants. It is also expected to increase cargo flights out of Phoenix-Mesa Gateway to 2,000 per year, a number that will skyrocket to 10,000 by 2036. AIR APPARENT Growth of air freight between Arizona and Mexico grew 180 percent from 2011 to 2015, outpacing all other modes of transport, according to Ducey’s office. Air freight trade between Arizona and Mexico currently totals $390 million per year and is expected to expand to $650 million by 2025. Kevin Cosca, senior vice president, CBRE, says the former Williams Air Force base was antiquated when East Valley municipalities took it over a long time ago. Since then there has been a considerable amount of work done to bring the airport up to standards for “passenger routing, hangar-type businesses, aircraft manufacturers, and aerospace and defense companies. With three runways, the airport’s capacity is unmatched.”
Able Aerospace
That growth since the airport was established as Williams Gateway Airport in 1994, and then renamed Phoenix-Mesa Gateway Airport in 2008, has led to five commercial airlines flying to more than 45 destinations, hosting more than 40 companies on site, and the airport area is developing as an international aerospace center with aircraft maintenance, modification, testing, and pilot training. “It’s almost like Phoenix-Mesa Gateway Airport has become an overnight success that took 10 years,” says Denny Barney, president and CEO of East Valley Partnership. “The City of Mesa installed the Ray Road Loop and put all the infrastructure in and then had to wait for the alignment of the stars. Then, you saw one building, then two buildings and then eight buildings. It’s almost like they put water in the ground and they started popping up. And it’s going to continue to grow.” LAWS OF ATTRACTION CBRE Senior Vice President Jackie Orcutt says the activity and success of the five commercial carriers out of Phoenix-Mesa Gateway and Arizona State University’s Polytechnic Campus within the airport’s boundaries, in addition to several flight schools and well-established manufacturing businesses, is likely
what spurred initial interest in SkyBridge more than two years ago. “Phoenix-Mesa Gateway recognized that they had a 360acre land parcel just southwest of the runway. There are very few tertiary commercial airports across the country that have this much land available for development,” Orcutt says. “With SkyBridge’s proposal to bring a unique international cargo expediting process to Phoenix-Mesa Gateway Airport, they were ultimately able to negotiate a land lease that would enable them to bring this project to life.” SkyBridge will be jointly operated between U.S. and Mexico customs officers, Orcutt says. “SkyBridge’s unique process enables products shipped via air cargo between the U.S. and Mexico to undergo all necessary customs processes on- site at Phoenix-Mesa Gateway Airport through a program called Unified Cargo Processing (UCP),” Orcutt says. With Mexican customs officials on site at Phoenix-Mesa Gateway Airport, the customs approval process can happen before the plane departs from the U.S. to Mexico, Orcutt says, allowing cargo to be delivered to its destination the very same day. “In the past, there’s been a bottleneck for delivery of product to Mexico via air cargo and it could take up to 14 days for cargo product to make it through customs once it had landed in AB | March - April 2019 75
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Denny Barney
Kevin Cosca
Doug Ducey
Gabriel Massey
Mexico,” Orcutt says. “This process allows it to happen essentially the same day.” GAME-CHANGER According to the International Air Transport Association (IATA), air cargo transports $6 trillion in value of goods, more than 60 million people have jobs supported by the aviation industry, and air cargo represents 35 percent of global trade by value, but less than 1 percent of trade by volume. In 24 hours in the air cargo industry, IATA statistics show that 100,000 planes take off, 20 million parcels are sent, 140,000 tons of cargo are carried, $18.6 billion value in cargo is shipped, and 657 million packages worth $17.8 billion are sent. “SkyBridge is going to the first-of-its-kind inland port, where people can brings goods and products on a plane and clear
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Jackie Orcutt
Ryan Smith
customs here and get to metropolitan areas in Mexico, which is our largest trading partner,” Barney says. Just how big could SkyBridge be? Barney thinks he has an answer. “When you think about SkyBridge, consider this: How big of a game-changer was Amazon?” Barney asks. “The first year I used Amazon, I had one order, then three and then 12. The whole face of shopping and receiving goods was changed by Amazon. Similarly, we think SkyBridge is going to be a dramatic gamechanger. From an inland port standpoint, it’s going to open up other opportunities that people haven’t considered yet.” Experts agree with Barney’s lofty assessment. “The impact that SkyBridge will have for international transit of air cargo products will be tremendous,” Orcutt says. “Feedback from logistics providers and large global users who currently
MESA ELLIOT TECH PARK: Mesa Elliot Technology Park is a Class A master-planned mixed-use business park. Located just east of the Loop 202 on Elliot Road, this 270-acre project will consist of more than 2.7 million square feet. QUEEN CREEK: Queen Creek’s downtown and economic core offers shopping, dining, education and entertainment. It currently has more than 115,000 square feet of new retail space proposed. RIVULON: Rivulon is a premier 250-acre mixed-use development with freeway frontage. When fully complete, the business district will include approximately 3 million square feet of Class A office and about 250,000 square feet of retail and hotels. SKYBRIDGE: SkyBridge Arizona is a 360-plus acre development strategically located adjacent to Phoenix-Mesa Gateway Airport taxiways. The land is “shovel ready” and ideal for aerospace manufacturing; research and development; maintenance, repair and operations facilities; and other industrial uses. UPTOWN CHANDLER: Chandler offers businesses a central PHX East Valley location, affordable commercial real estate options, and tremendous access to customers and talented workers.
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SkyBridge layout
“It’s almost like Phoenix-Mesa Gateway Airport has become an overnight success that took 10 years.” —Denny Barney
ship products via air cargo to Mexico has been very positive. Phoenix-Mesa Gateway and SkyBridge have had several test runs employing the unified cargo process and all have been very successful. This process is a game-changer and it will revolutionize the way third-party logistics companies distribute product from the U.S. to Mexico.” MORE JOBS LANDING The leaders of SkyBridge estimate 10,000-12,000 new jobs will be created within the next decade on site, based on the mixed use of the 3.5 million square feet slated for development, and that’s just within Phoenix-Mesa Gateway Airport. “SkyBridge has already been approved to develop on two parcels of land and the remaining 355 acres will likely receive FAA approval by summer 2019,” Orcutt says. “At that time, the master plan can move forward. That plan includes 3.5 million square feet of state-of-the-art facilities geared towards attracting various industries to the area.” Potential tenants at SkyBridge will range from flight schools, which train commercial, private and government-related pilots; to original equipment manufacturers. “Additionally, SkyBridge has a collaboration with Arizona State University Polytechnic campus, which offers several programs focused on aerospace, technology and defense-related technology,” Orcutt says. That collaboration will be a way for the airport and ASU to not only educate students, but provide opportunities for learning, growth and the potential for full-time employment. “One of the biggest assets for Phoenix-Mesa Gateway Airport itself is the proximity to three great educational institutions — Arizona State University, Chandler-Gilbert Community College and the East Valley Institute of Technology (EVIT),” Smith says. “ASU and Chandler-Gilbert have done a great job of molding their curriculum and what they offer to prospective students that are 78
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looking to get into the aviation industry — whether that’s future pilots, air traffic controllers or aircraft mechanics.” ADDED VALUE In addition to the educational component, SkyBridge has the potential to add great value to Phoenix-Mesa Gateway
PHOENIX-MESA GATEWAY AIRPORT • Home to more than 50 companies. • Record-setting passenger activity as 1,531,648 passengers traveled through the airport in 2018. • Three runways measuring 10,400, 10,200, and 9,300 feet can accommodate the largest aircraft in the world. • Serves more than 47 cities with non-stop service via Allegiant, California Pacific Airlines, Flair Air, Swoop and WestJet. • Unified cargo processing with U.S. and Mexican Customs for direct export into Mexico. • Contributes $1.3 billion annually to the Arizona economy. • An international aerospace center with aircraft maintenance, modification, testing, and pilot training. • Designated as Foreign Trade Zone #221, as well as a Military Reuse Zone, offering aviation companies a significant financial edge in the global marketplace.
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Airport through trade, e-commerce and economic development opportunities that will be presented through on-site companies and potential tenants. “If you’ve driven past the airport recently, you see there is tremendous growth happening, especially at the north end,” Barney says. “A lot of that is larger warehouse and manufacturing facilities, which take up a lot of square footage, but don’t necessarily translate into a high number of jobs. SkyBridge is transforming that into a higher-tech, higher-demand, highervalue proposition that we think elevates the entire jobs market around the airport and makes it into a true center of excellence.” Companies currently on site at Phoenix-Mesa Gateway include aircraft maintenance, repair and overhaul, aircraft operations, airlines, aviation shops, supplies and distribution, building development, consumer and construction services, education and flight training, government, manufacturing, rental cars, food and beverage and retail. “Our central location, as it relates to the Southwest U.S., and proximity to Latin America and Mexico, makes us a unique setup and once you involve and include the unified cargo processing program and lots of land, it’s really a setup unlike any other in the entire country,” Smith says. “And it’s something that SkyBridge has committed to seeing be successful as we continue to grow our commercial passenger service. As the growth in the Southeast Valley continues, I think we will see opportunities on the business side where people locate their business and take advantage of all that Gateway has to offer.” SUCCESS STORY One of those businesses is Able Aerospace. Able relocated to its headquarters at Phoenix-Mesa Gateway Airport in 2013. Since that time, it has added more than 200 employees and expanded its footprint, adding new mezzanine space, a new paint facility and the build-out of hangar space that is now home to the Able Maintenance Center. “Able’s original campus is the result of a successful publicprivate partnership between our company, the City of Mesa and the Phoenix-Mesa Gateway Airport Authority,” says Gabriel Massey, general manager of Able Aerospace Services. “The airport and city have a clear vision for the East Valley’s aviation-related economy and that – combined with a very strong local workforce – continues to fuel our effort to operate as a world-class, customer-first component repair and overhaul provider.” In December 2018, Able broke ground on an additional 50,000-square-foot building expansion, which Massey says Able will use to enhance the technology employed in their repair and overhaul process, in addition to new product and service offerings. Massey says that expansion is expected to generate as many as 100 new, local, skilled aerospace jobs over the next two years. “Our strong and positive relationship with the airport and the city has helped us to grow in size, capabilities and revenue,” he says. “In turn, we have added hundreds of new jobs to the local market. When it came time to pick a location for our latest 80
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expansion, the Airport Authority and City of Mesa made our decision to stay and expand at our current site a very easy one.” That expansion includes additions to their original 191,000-square-foot building. “Those expansions have allowed us to continue to grow in areas of high industry demand, including new equipment and repairs that allow us to support the latest aircraft models and a maintenance center that provides expert aircraft completion services, including state-of-the-art avionics upgrades,” he says. Massey says Able supports almost 1,500 civilian and military customers in 60 countries worldwide with more than 10,000 FAA-approved component repair, overhaul, parts and aircraft completion services. “Our latest expansion, which is slated to be complete this summer, will allow us to continue to grow and respond to market needs,” Massey says. “It is a strategically paced evolution that keeps us at the forefront of technology and capabilities so that we can keep our customers across the world safely flying.” Not only is SkyBridge going to impact companies on site at the airport like Able, but Orcutt says, “SkyBridge is quickly becoming a target for users in various industries, including manufacturing, e-commerce, air cargo and logistics, corporate hanger users, freight forwarding, defense contractors, electronic manufacturers and distributors, airline manufacturing, MROs and generalpurpose warehousing. “SkyBridge is not only going to revolutionize the aircraft industry,” she says, “it has the potential to revolutionize the distribution and e-commerce industries.”
IMPROVED CUSTOMS PROCESS THROUGH SKYBRIDGE ARIZONA • Freight arrives to Phoenix-Mesa Gateway Airport from multi-national companies for customs clearance and processing prior to transit to Mexico. • Mexican and U.S. customs officers jointly inspect shipments with required permits and approvals. • Packages ship directly to final destinations in Mexico and beyond. • Customs electronically tracks shipments to final destinations and customers receive electronic notifications of deliveries and contents. • Customers on both sides of the border are satisfied with faster, more secure deliveries.
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HOME-GROWN PRIDE PHX East Valley becomes a hotbed for innovation, while remaining a great place to live and raise a family
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By MICHAEL GOSSIE
D
enny Barney, a sixth-generation Arizonan, was born to lead the East Valley Partnership. “It’s very personal to me,” says Barney, who took over as president and CEO of East Valley Partnership on June 1. “I was born and raised here. I’ve lived on the East Coast, the West Coast, overseas, but I’m back here because this is where I want to raise my family. Ultimately, I want to make sure that when my kids are entering the workforce, there are the right kinds of jobs waiting for them if they choose to stay here. It’s important to attract those 21st Century jobs so our economy can continue to grow.” The East Valley Partnership was formed 35 years ago as a cooperative effort among the communities of the PHX East
CLIMBING THE RANKINGS • Business Insider ranked the Greater Phoenix region the 10th Most High-Tech City in the U.S. • WalletHub ranks Arizona as the 17th Most Innovative State in the U.S. • Area Development recognized Arizona as a top state for economic competitiveness • Forbes ranked the Greater Phoenix region 16th for best cities for young professionals • Chief Executive Magazine ranked Arizona as the 9th Best State to do Business
Valley region. Since then, the region has experienced exponential population growth and added thousands of new jobs. Today, the PHX East Valley boasts a combined population of 1.3 million in the cities and towns of Apache Junction, Chandler, Fountain Hills, Gilbert, Mesa, Queen Creek, Tempe and Gila River Indian and Salt River Pima-Maricopa Indian Communities. Because of its talented and highly educated workforce and favorable quality of life, the area also continues to be a magnet for new businesses and entrepreneurial ventures, particularly in industries such as aerospace and aviation, technology, financial services and healthcare. AB | March - April 2019 83
EAST VALLEY PARTNERSHIP “The Partnership has played an indelible role in the growth and development of the PHX East Valley,” says Barney, who represents District 1 on the Maricopa County Board of Supervisors and is also principal of Arcus Private Capital Solutions, a specialized realty investment and finance company. “I love the organization’s specific focus on quality of life, economic development and the issues that are so important to me.” Az Business talked with Barney to get his take on where the PHX East Valley is today and where he sees it going tomorrow. Az Business: How do you view the business climate today in the PHX East Valley? Denny Barney: They called the 1920s the “Roaring ‘20s.” It seems now we are heading into the “Roaring 2020s.” There’s such an emergence of all these great things as our economy has transformed. We used to be very consumption based, but there’s been a migration away from those types of jobs. You’re seeing a movement toward the types of jobs that are more sustainable across the economic cycles and the PHX East Valley has been at the epicenter for much of that growth as it relates to advanced
manufacturing, FinTech, emerging technologies, bioscience and things we think will create a more sustainable economy. From an infrastructure standpoint, a workforce standpoint, housing availability, space and transportation, the PHX East Valley was positioned with all those things in place and was ready to invite those types of companies in. AB: Why has the PHX East Valley become such a hotbed for innovation? DB: We talk about technology in the East Valley like it’s a new thing, but Intel moved here 40 years ago and has invested $30 billion in its campus here. Motorola was deeply entrenched in our market. Boeing has quietly been in Mesa for decades with 3,000 employees creating some of the finest technology used by armed forces around the world. For those of us who have been here for a long time, we’ve been wondering when the light was going to go on and there would be recognition of the innovation that has been happening in the PHX East Valley. It was going to happen and now it’s like a self-fulfilling prophecy. So when you look at the demography of the East Valley and the skilled workforce, you see that things are finally hitting on all cylinders. AB: Did having companies in place like Intel and Boeing help attract those other companies that have sparked the technology explosion in the East Valley? DB: It articulates the value proposition. If you’re on the board of directors of a company that is looking to move, you have to look at the value created by making that move. To have significant companies in place helps tell the story in a way that makes it easier for others to consider making that decision to move to the PHX East Valley. AB: What’s the appeal of the East Valley? DB: Originally, companies came here because of affordable land, affordable housing for their employees, good schools, good transportation infrastructure and an available workforce. But it’s more than that. We have a stable regulatory environment that you won’t find with our neighbor to the west. We all love California, but we don’t want to run our businesses there and a lot of people are figuring that out. And for all the rhetoric you hear, we have a stable tax environment that allows people to come in and scale a business. AB: In what sectors has the PHX East Valley become a gamechanger in technology? DB: We did a forum on disruptive industries and Gilbert-based Offerpad was one of the panelists. They talked about how they are reshaping the way people transact their single-biggest financial asset — their home. Those types of disruptions are going to continue and we see it in how we — as a culture — interface with our financial institutions. It’s dramatically different today from what it was just 36 months ago. If you don’t have a good app on
UNITED FRONT: “We are a regional advocacy group that brings people together,” says Denny Barney, president and CEO of East Valley Partnership. “It’s amazing what can happen when you get a bunch of smart people who believe in the region together in one room.” (Photo by Mike Mertes, AZ Big Media)
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EAST VALLEY PARTNERSHIP your phone to do your banking, you switch banks. So if you look at FinTech — and that’s a big buzzword in the jobs arena — the PHX East Valley has become a hotbed for FinTech. If you look at autonomous vehicles, we have become Ground Zero for autonomous vehicle testing. From all that innovation, you get secondary and tertiary jobs where people are feeding into these growing industries. Every industry in which you are seeing mass disruption is represented in the PHX East Valley. We cannot even comprehend the breadth and depth of the impact today, but when we look back in four or five years, we will say, “Wow, look what happened.” AB: How much does the fact that Arizona State University calls the PHX East Valley home play into the region’s ability to innovate? DB: You cannot have the right kind of workforce without the right types of educational platforms. ASU has gone from being the No. 1 party school two decades ago to today being the No. 1 most-innovative university for several years in a row. But it’s not just having a great university like ASU. We have great community colleges, great K-12 districts that all wrap up into preparing the workforce needed to meet the needs of the new-economy type jobs. We want those new-generation jobs that will allow us to be more insulated to the historical ups and downs — the boom-bust — of the economy. The truth is, the trajectory has shifted and ASU and other education institutions have helped us stay ahead of that trajectory.
AB: What trend should should we be watching in the next year? DB: It’s all about jobs and creating the right kinds of jobs that will move our economy forward in a sustainable way. If you look at jobs reports from the past, about 25 percent of new jobs created were companies that were new to the market and the other 75 percent came from companies that were already here. For the first half of 2018, it was almost opposite. Almost 80 percent of the new jobs created came from companies that were new to the market. That’s going to change the complexity of the region as we bring in new people and new opportunities. Our push is to continue to get our share of those new jobs, get people to grow their businesses here if they’re already here, move their businesses here if they’re not, move their families here or start their families here, and capitalize on the positive energy that defines the PHX East Valley.
AB: How is East Valley Partnership helping the region prepare for its next stage of development? DB: We are not the Chamber of Commerce. We are not GPEC. We are kind of positioned in between, where we are beating the drum day in and day out telling people why this is a great place to do business and what you are missing out on. That story needs to be told. Maricopa County is competing against a lot of great communities, but we have a unique value proposition that people need to hear about. In order to have quality of life, you need a few AB: What are some of the other components — we are blessed with beautiful disruptors or game-changers you see blue skies and sunshine, but you also need to coming from the PHX East Valley? have good transportation infrastructure, good DB: Remember what the north healthcare delivery, and you have to have solid side of ASU looked like before Tempe education systems to educate everyone from Corporate income tax: 4.9% Town Lake? It was a dry riverbed. P-12 through higher education. We have all Then, you had some leaders who said, those things. The goal of the partnership is Individualincome tax: 4.5% “We can do better.” Now that area to make sure we are positioning the region State sales tax: 5.6% that was once a “no man’s land” is a in a way that when people are looking for vibrant jobs center. You have other opportunities — across all economic cycles — Background: Arizona’s personal little pockets like that in the PHX they don’t forget to consider us. income tax system consists of East Valley that are changing the five brackets and a top rate of game. In Tempe, you have the new AB: How do you see the PHX East Valley 10 4.54%. That rate ranks 19th I.D.E.A. Tempe, which is focused years from now? lowest among states levying an on bringing new biotechnology DB: Historically, the PHX East Valley has individual income tax. Arizona’s and technology companies to been very suburban. We are going to see more state income tax collections per Tempe. Mesa is working on its own evolution toward urban cores that are part person were $515 in 2016 which innovation district that is focused of the suburban model. There is a certain ranked 10th lowest nationally. on catapulting some of these highsegment of the population that wants to be Arizona does not collect local tech industries that are landing close to where they work, so we are going to income tax; municipal sales tax here and putting them into space see an evolution that will change some of our rates vary by municipality. to build around its emerging ASU communities’ dynamics like we’ve seen in campus. You have Gilbert working Tempe. Queen Creek and Apache Junction with Deloitte — one of the biggest are going to continue to fill in and grow. companies in the world — to create Each of our communities are investing in one of their global centers of excellence. And the only challenge infrastructure in unique and different ways that will elevate their we are facing along the Loop 101 — the Tech Corridor — is that missions. I don’t think we are going to be flying around in cars we are running out of space. So it’s pushing development further like “The Jetsons,” but I think we’ll be riding around in cars that south and out toward Phoenix-Mesa Gateway Airport. So what don’t have drivers. We have seas and seas of parking lots that may we see now as separated pockets will eventually blend together become less important. So what is currently critical infrastructure because of availability of real estate resources. could become adaptive re-use space 10 years from now.
COMPETITIVE TAX RATES
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EAST VALLEY PARTNERSHIP
EAST VALLEY PARTNERSHIP INITIATIVES PHX EAST VALLEY PHX East Valley is a national initiative led by the East Valley Partnership to advance business and quality of life in the region. Communities in the region are leaders in Arizona economic development and drive business expansion, high-tech job growth, higher wages and innovation. The PHX East Valley region is comprised of cities such as Tempe, Mesa, Chandler, Apache Junction, Gilbert and the Town of Queen Creek. Experience first-hand the elements that have allowed the region to pioneer the future. The East Valley’s growth in advanced industries has aided strategic urban development that has transformed these communities into bustling metropolitan hotspots that are attractive to a young, diverse workforce including families and empty-nesters that desire a work and play destination. EDUCATION THINK TANK One of the most important — and successful — drivers of the region’s strong economy is the interconnectedness of its vigorous and vital business community with its exceptional P-20 educational system. Historically, an important driver in advocating for education issues and topics has been the East Valley Think Tank (EVTT). As of 2016, EVTT transitioned back under the East Valley Partnership umbrella, where it had its origins in the late 1990s. Education has always been a foundational issue for the work of the East Valley Partnership, and its commitment to education advocacy will now be served by a tiered committee structure to involve both the region’s education practitioners and leadership, as well as business leaders who are interested in education topics and have a passion for continuing and expanding educational excellence in the region and state. PHX EAST VALLEY ANGEL INVESTOR PHX East Valley Angel Investor Initiative is a regional partnership to catalyze economic growth by raising awareness of the importance of angel investing and enhancing access to early-stage funding for PHX East Valley tech startups. An angel is an individual who invests his or her own money in startup companies in exchange for an equity share of the businesses. An individual angel may invest as little as $5,000 in a business, while an angel group may pool members’ capital to make a much larger investment. In addition to capital, angels often invest time in entrepreneurs to help them grow their businesses. Return on investment is made when the entrepreneur successfully grows the business and exits it, generally through a sale or merger. 88
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Northrop Grumman’s CRS-9 #Cygnus departing from the International Space Station
DEVELOPING A POWERFUL LOCAL ECONOMY
PHX East Valley’s 1.3 million residents have a lower than average median age (34.98) compared with the national average and higher educational attainment, providing an outstanding workforce for knowledge-based industries. The PHX East Valley is also home to global innovative brands such as Intel, Northrop Grumman Innovation Systems (formerly OrbitalATK), Amkor, Keap (formerly InfusionSoft), The Boeing Company, General Dynamics, GoDaddy, PayPal, Honeywell, GM Innovation Center and Microchip, making it a magnet for cutting-edge technology companies. SUPERSTITION VISTAS The Superstition Vistas Area Project covers 275 square miles of undeveloped Arizona State Trust Land on the eastern edge of Phoenix. The East Valley Partnership has engaged in a visioning process to make sure that this land sets an example for sustainability and economic prosperity for the region. Superstition Vistas has the potential to become a thriving and sustainable desert community that combines the best of urban and rural living while conserving vast open spaces — a model for the 21st century. However, its future, and Arizona’s inheritance, depends on the region’s ability to implement a long-range plan that can guide decision-making for several decades. Over the past few years, local communities, organizations and consultants have crafted six possible outcomes for the Superstition Vistas area which ranged from continuing current development patterns to higher density development patterns with access to open space. AB | March - April 2019 89
EAST VALLEY PARTNERSHIP
ABOUT THE EAST VALLEY PARTNERSHIP WHAT IT IS: East Valley Partnership has long been recognized as being proactive and responsive to the needs of its members. Whether you are a business, healthcare or educational institution, or local municipality, you have a role to play to ensure the vitality and prosperity of the region. Your participation is vital in assisting the East Valley Partnership with continuing efforts to move the East Valley region forward. Issues surrounding education, transportation and infrastructure, economic development, and other important areas comprise a large part of where the East Valley Partnership devotes time and resources. GET INVOLVED: evp-az.org or 480-834-8335
PHX EAST VALLEY CULTURE CLUB The local arts industry supports nearly 12,000 jobs and contributes more than $400 million to the economy in the Phoenix region with more than half, $235 million, coming from event-related spending. PHX East Valley venues such as the Mesa Arts Center, Chandler Center for the Arts and many more are providing entertainment and assets to the community. The PHX East Valley is home to: • Apache Junction Performing Arts Center (Apache Junction) • Art Intersection (Gilbert) • ASU Gammage (Tempe) • Chandler Center for the Arts (Chandler) • Chandler Symphony Orchestra (Chandler) • East Valley Children’s Theater • I.D.E.A Museum (Mesa) • Mesa Amphitheatre (Mesa) • Mesa Arts Center (Mesa) • Mesa Convention Center (Mesa) • Queen Creek Performing Arts Center (Queen Creek) • Silver Star Theater (Mesa) • Superstition Mountain Museum (Apache Junction) • Tempe Center for the Arts (Tempe) • The Vision Gallery (Chandler)
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Region on
THE RISE
From startups to technology giants, innovation thrives in the East Valley
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rizona’s rising technology sector continues to be nationally recognized for its rapid growth and emergence as an innovation hub. More and more established technology companies are locating in the Valley like never before as others seem to launch here every week. One of the most significant contributors to this growth is the success occurring in the East Valley of Phoenix’s metropolitan area.
Steven G. Zylstra Technology
EAST VALLEY INNOVATOR: At Intel Corporation’s East
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The story of the East Valley’s technology sector begins with the work of its political and community leaders. Organizations like the East Valley Partnership (EVP), led by Roc Arnett in the early 2000s, brought local leaders together to oversee the transformation of the area into a technology powerhouse. This included a rebranding campaign aimed at attracting new industry projects that have positively affected the growth of the community and economy. EVP leaders, including former Gilbert Mayor John Lewis and current President and CEO Denny Barney, have continued Arnett’s work of focusing on technology, education and a positive brand for the region. Political and community leaders in the East Valley such as Sen. Steve Yarbrough, Rep. Jeff Weninger, former Mesa Mayor Scott Smith, and former Chandler Economic Development Director Christine Mackay also have been key contributors to positioning the East Valley as a leader in innovation. These individuals have worked to fight for technology-friendly legislation and create infrastructure, as well as entrepreneurial and STEM programs to feed the pipeline of technology talent necessary for continued success and economic growth.
Today, the East Valley plays host to some of the world’s largest companies in industries such as aerospace, semiconductor, data centers, advanced manufacturing and, most recently, autonomous vehicles. It is now home to one of the world’s richest technology corridors, which is located along the Loop 101. The East Valley includes renowned brands such as Intel, Waymo, Amkor, Microchip, Honeywell, Northrop Grumman (owner of the former Orbital ATK), Benchmark, Local Motors, Keap (formerly Infusionsoft), and Boeing. Arizona has become well-known on a worldwide stage for being the center of development and testing for autonomous vehicles, one of the most innovative and fast-growing sectors in technology. The buy-in from all levels of government in the state have attracted companies like Waymo, Uber and Israelbased startup Imagry to the East Valley. The addition of these companies has played a major role in attracting companies that support and develop Internet of Things, sensor and smart city innovations. In addition to some of the world’s largest technology giants, the East Valley has attracted numerous data centers like CyrusOne and Digital Realty Trust, and ASU Research Park has filled out its office space with high-tech companies like Iridium, KinetX and PADT. The presence of these companies adds to the region’s already diversified technology sector.
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EAST VALLEY PARTNERSHIP Talent, education and entrepreneurial development have been additional key factors in creating the East Valley’s thriving technology ecosystem. The region has some of the most robust and successful STEM education programs and facilities. It is also one of the first regions in the Southwest to embrace entrepreneurial infrastructure like accelerators, co-working spaces and incubators, with organizations like Gangplank and MAC6. To keep young talent living in the East Valley long after graduation, the region also offers a wonderful work/life balance with appealing property values and recreation. Starting with its main campus in Tempe, Arizona State University (ASU) has been a significant contributor to educating and building a robust entrepreneurial atmosphere for students and young professionals. Its programs and infrastructure such as the ASU-Draper University Entrepreneurship Incubator Program, ASU Polytechnic, InnovationSpace and the School for the Future of Innovation in Society are examples of ASU’s commitment to cultivating a strong entrepreneurial spirit in the community. Tempe is also home to the University of Advancing Technology, a school at the forefront of developing academic programs in critical fields such as network security, robotics, embedded
GROUND BREAKER:
Margaret Henschel, one of the more than 50,000 Intel employees in the United States, moves through Fab 32, a highvolume manufacturing facility in Chandler. (Provided photo)
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systems and game development. Many of its students have gone on to start their own companies or been recruited by some of the top technology firms in the Valley. Besides the post-secondary institutions, K-12 schools such as the Self Development Academy and the East Valley Institute of Technology in Mesa, BASIS Chandler, and Gilbert Classical Academy will help fill the pipeline of talent for years to come. The East Valley’s technology-conscious leaders and organizations have created an energetic atmosphere of innovation and prosperity, as well as the infrastructure, talent pool and educational institutions required to sustain success. With its continued focus on building the technology community, the East Valley is well-equipped to attract large technology companies and support entrepreneurial growth. Steven G. Zylstra, Sc.D. (Hon.), serves as president and CEO of the Arizona Technology Council, where he is responsible for strategy, operations, and accomplishment of policy development. Zylstra is a vocal spokesman for the value that technology can provide in raising social and economic standards in Arizona. He has served in numerous technology advisory roles to Arizona governors and currently serves on several association, industry and community boards.
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