The Sun Corridor is Arizona's megapolitan area stretching from Nogales in the south to Prescott in the north, with Phoenix at its core. The megapolitan is growing at a tremendous rate, bringing the challenge of conserving natural desert and open space while creating urban quality of life.

1. CAPITAL CONNECTION: Two local
businesses tappedforeducationprogram. 6
TRADE BARRIERS: Suntechslows
production, 50workers to get pink slips. 7
BYTIMGALLENANDMIKESUNNUCKS
PhoenixBusinessJournal
W
ith the presidential election in
the books and the turkey con-
sumed, retailers are focused
squarely on consumers as the
holiday shopping season kicks off.
Surprisingly, after a year of uncer-
tainty and seemingly bipolar economic
conditions, retailers are optimistic that
shoppers will shrug off the financial
doldrums of the past 11 months and
open their wallets wide.
That optimism could mean a big boost
for local retailers who have struggled
through another tough year financially.
Though the entire holiday shopping
season is important, the opening weekend
— Black Friday, Small Business Saturday
and Cyber Monday — is key especially for
independentretailersandbusinesses,said
Kimber Lanning, director of Local First
Arizona.
SUN CORRIDOR: Lea Márquez
Peterson is confident Tucson’s
economy will remain strong. 10
6
ez
0
PROFILE:
Sharon Lechter,
founder and CEO, Pay
Your Family First. 17
in
on-
ed
he
r-
c
t
st
RooftopsolarproposalcouldalterAPSbusinessmodel
BYPATRICKO’GRADY
PhoenixBusinessJournal
AplanbytheArizonaCorporationCom-
mission staff that utilities spend more on
rooftop solar has Arizona Public Service
Co. defending its business model and solar
practices.
ACC staff presented a plan it called a
“paradigm shift” in response to APS’ an-
nualfilingthatshowshowtheutilitywould
meet the state’s renewable energy stan-
dard. The plan calls for APS to go beyond
staterequirementsof getting30percentof
its solar capacity from rooftop systems.
The issue, as written in the staff report,
is that rooftop solar represents a cheaper
way for the utility to deploy its renewable
resources. APS contends the way commis-
sion staff figured costs doesn’t consider
all factors, including prices that would
rise on non-solar customers in the wake
of more people adopting the
technology.
“Our goal at APS is to edu-
cate stakeholders on all the
costs,”saidJimMcDonald,a
spokesman for the utility.
Those in the solar indus-
try say the move by APS
marks a change in direction
and offers a glimpse of a company that is
trying to protect its business.
“Unfortunately this isn’t a surprise,”
said Michael Neary, executive director of
theArizonaSolarEnergyIndustryAssoci-
ation, a trade group of various companies
involved in the industry, including utili-
ties. “APS is a heavily regulated monopoly
that is trying to preserve its market.”
The discussion likely will continue next
month,whentheACCtakesuptheutility’s
Businesses brace for holiday season
BYKRISTENAHANSEN
PhoenixBusinessJournal
I
t’s that time of year again, but holiday
cheerinthelocaltourismindustrymay
be somewhat mixed this season.
What Arizona hoteliers, restaura-
teurs and even retailers once looked for-
ward to as the busiest time of year still is
having a rough time getting
out of its Great Recession
slump.
Last December, for exam-
ple, hotels statewide raked
in$142millioningrosssales,
according to the Arizona
Office of Tourism. That’s a
roughly 2 percent increase
from the two previous Decembers when
sales hit bottom, but still was down by
more than 15 percent from the bustling
times of 2006.
While the economy recently has been
showing signs of an upswing in most
SEE SHOPPING | 23 SEE TRAVEL | 23
SEE APS | 24
THE LISTS:
Economic development
organizations. 12
Homebuilders. 16
phoenix.bizjournals.com INFORM. CONNECT. SUCCEED. NOVEMBER 23, 2012 $3.95
ay
7
Holohan
t
Retailers cautious,
but optimistic about
spending season
Tourism officials struggle
with hotel competition,
rebounding economy
Moloznik
MORE INSIDE
Cyber Monday•
hampers workplace
productivity. 5
Companies holding•
smaller holiday
parties. 8
Small Business•
Saturday grows to
support local shops.
ONLINE
TIM KOORS | SPECIAL TO THE PHOENIX BUSINESS JOURNAL
Small-business owners are gearing up for the holiday shopping
season. Retailers such as Jeanine Rometti, owner and operator
of the Old Town Candy and Toys store in Scottsdale, say they
are optimistic this year will be better than last.

2. The Sun Corridor.
Consider Yourself Invited.
TUCSON
PHOENIX
PRESCOTT
10 SUNCORRIDOR:TUCSONphoenix.bizjournals.com
BYCHRISTOPHERLEONE
PhoenixBusinessJournal
D
uaneArmijohasbeenlivingandworking
comfortably in Phoenix since 2005. But
whendecidingwhereinArizonatolocate
his building-systems company, he looked
at locations from Flagstaff to Tucson.
Armijo said the package of incentives the city
of Tucson put together was the best, but what
made the biggest impression on Armijo was the
way Tucson treated him.
“It didn’t feel like a government transaction,”
he said. “It was very, very different.”
Peoplehehadnevermetbeforeintroducedhim
to other people. He and his partners quickly felt
connected to Tucson’s business community.
“The network down there is very close-knit,”
Armijo said.
November 23, 2012
Working toward
a strategy
Corridor gives Tucson the chance to shine
SPONSORED BY:
The Sun Corridor is Arizona’s megapolitan area
stretching from Nogales in the south to Prescott
in the north, with Phoenix at its core. The
megapolitan is growing at a tremendous rate,
bringing the challenge of conserving natural desert
and open space while creating urban quality of life.
SEE TUCSON | 11

3. Another reason Armijo choose Tucson
was Union Pacific’s Sunset Route, a 760-
mile track that runs from Los Angeles to
ElPasoandgoesthroughTucson.Armijo’s
core product is a 32-foot by 10-foot panel
that can be shipped by truck or rail.
A supportive business community and
strategiclocationaretwoassetsamongsev-
eralTucsonwillusetodifferentiateandin-
tegrate itself into Arizona’s
Sun Corridor, a transporta-
tion and economic region
looselydefinedasstretching
from Prescott to Nogales.
DefiningtheSunCorridor
moreconcretelyfirstwillre-
quire building Interstate 11
from Las Vegas to Phoenix
and a passenger rail line between Phoenix
and Tucson. The Arizona Department of
Transportation says it will then focus on
extendingI-11toTucsonandMexico,bring-
ing the Sun Corridor into full alignment.
Although the new infrastructure is just
in the planning stages, Tucsonans have
begun to define in the past few years how
their city will look and compete when the
roads and rails become a reality.
“InmanywaysTucsonismorereceptive
to the idea of the Sun Corridor in general
than Phoenix is,” said Dan Hunting of the
Tucson-based Sonoran Institute.
Tucson has much to gain from the Sun
Corridor, but it also has much to lose
if the growth is not managed properly,
Hunting said.
Tucson’s efforts have worked to ensure
development is environmentally sustain-
able and does not change the city’s char-
acter. Secondly, their efforts have worked
to define a strategy to capitalize on the
city’s strengths and not butt heads with
Phoenix.
VISIONING AND BRANDING
Imagine Greater Tucson is an example
of one way Tucsonans have started to cre-
ate a vision of how the city will integrate
intotheSunCorridor.Itstartedafewyears
ago to ask residents what they wanted the
future of Tucson to look like.
Afterhundredsof surveysthatcollected
the opinions of 10,000 residents, IGT re-
leasedlastSeptembertheresultsof itstwo-
year effort in a document called “Looking
Forward — A Vision for a Greater Tucson
Region.”
The effort culminated in identifying 60
individualvaluesthatwereorganizedinto
nine categories.
Those values and categories now are be-
ing incorporated into development plans
for the cities surrounding Tucson and
Pima County, said IGT Executive Director
Mike Holmes.
The principals are “all very mom and
apple pie,” Holmes said. But the key to the
exerciseisthat“itgotpeopleoff of thevery
fewpointsof differenceandontocommon
ground.”
The creation of a Tucson chapter of the
environmentally focused Valley Forward
IMAGINEGREATERTUCSON’SSHAREDREGIONALVALUES
November 23, 2012 PHOENIX BUSINESS JOURNAL SUN CORRIDOR: TUCSON 11
phoenix.bizjournals.com
Research, Innovation Drive Economic
Development in Southern Arizona
With Arizona’s Sun Corridor embodying the potential for long-term
growth through collaboration and partnership, there is great work
being done in and around Tucson, the corridor’s southern anchor.
In fact, Southern Arizona has quietly emerged as a research
and innovation center – encouraging and helping fund start-up
companies with a collaborative approach to moving knowledge and
inventions to market – with all of Arizona benefiting in the process.
Here is a brief update on these ongoing efforts.
The University of Arizona recently created its “Tech Launch Arizona”
entity to better facilitate the transfer of research discoveries made
on campus into inventions that drive new start-up companies.
Tech Launch Arizona has since joined ASU, NAU and Dignity
Health as a research partner in a state-wide collaboration to drive
economic development called “Arizona Furnace.”
As part of Arizona Furnace, promising start-up ventures receive
a package worth more than $50,000 in funding grants and services,
and six months of incubation space at ASU’s SkySong, the UA’s BIO5
Oro Valley Accelerator or the Arizona Center for Innovation. To be
accepted, companies must be based in Arizona, providing economic
development and job creation.
At the other end of the spectrum, Southern Arizona is home
to many established technology-based companies noted for their
innovation in the areas of optics (Breault Research, 4D Technology),
biotech/medical (Ventana Medical Systems, Sanofi), aerospace
(Universal Avionics Systems), defense (Raytheon) and computing
(IBM).
Several of these, including Ventana, Breault and 4D, are “home-
grown” former start-ups that demonstrate both the viability
of Southern Arizona’s technology-incubation climate and the
potential for widespread impact on Arizona and beyond.
Key to these incubation efforts is the timely combination
of innovation with necessary sources of business knowledge,
mentoring, capital, and the identification and protection
of intellectual property.These resources are entrenched and
growing, thanks to knowledge centers such as the Eller College
of Management and McGuire Center for Entrepreneurship, as well
as events featuring business, funding, and IP-related programs
sponsored by the Bio-Industry Organization of Southern Arizona,
the Arizona Technology Council, and Quarles and Brady among others.
These are exciting times for the greater Tucson region…
and Arizona’s Sun Corridor. We look forward to continued
collaboration with our state-wide partners.
One Renaissance Square
Two North Central Avenue
Phoenix, AZ 85004
(602) 229-5200
quarles.com
Gavin Milczarek-Desai
Co-Managing Partner,
Tucson Office
Quarles & Brady LLP
#SunCorridor
Following community meetings and
surveys of some 10,000 people in Tucson,
Imagine Greater Tucson, or IGT, released
the results of a two-year survey in a report
called “Looking Forward – A Vision for a
Greater Tucson Region.” The document
outlines nine categories of focus:
ACCESSIBILITY: Tucson has many choices for
traveling to destinations throughout our
region in a safe, pleasant, and efficient
manner.
EDUCATIONALEXCELLENCE: All residents of
the region are able to attend high-quality
schools from pre-K through college and
beyond.
ENVIRONMENTALINTEGRITY: Clean air,
natural lands, the unique plant and
animal life, and the beauty of the
Sonoran Desert are preserved for current
and future generations. The region
recognizes and respects the limitations
of water and the other natural resources
that make life in the desert southwest
possible.
GOODGOVERNANCE: The area’s
jurisdictions, institutions and leadership
are responsive, efficient, transparent, and
work cooperatively to effectively address
the region’s challenges.
HEALTHYCOMMUNITIES: Neighborhoods
across the region are safe and foster
healthy lifestyles through accessible and
affordable housing choices, excellent
hospitals and clinics, nearby parks,
pedestrian and bike amenities, and
connections to trails and other natural
recreation spaces.
HIGHER EDUCATION: Tucson’s university
and colleges continue to be centers of
innovation, job creation, education,
entertainment, and cultural programs.
They are central to the region’s
identity.
PROSPERITY: The region has a robust
local economy in which businesses of
many sizes and types can thrive and
provide job opportunities for the entire
population.
QUALITYNEIGHBORHOODS: From vibrant city
and town centers and walkable mixed-
use and mixed-housing neighborhoods
to single-family subdivisions and rural
areas, residents can choose from a
variety of high-quality options for living
and working.
REGIONALIDENTITY: Tucson residents
continue to promote and celebrate
the diversity, history, acceptance,
friendliness, arts, and “small town feel”
that are integral to the unique culture of
the region.
Source: Imagine Greater Tucson, www.imaginegreatertucson.org
TUSCON: Development plans incorporate 9 focus areas from 2-year study
FROMPAGE10
SEE VISION | 13
Armijo

4. is another example of the effort to define
the way Tucson integrates into the Sun
Corridor.
Over the past two years, the Maricopa
County-focused organization has adopted
a statewide mandate and officially will
change its name beginning in 2013 to Ari-
zona Forward.
Kurt Wadlington at Sundt Construc-
tion in Tucson has chaired the Southern
chapter of Arizona Forward during the
transition, and said the Sun Corridor is
the reason why Valley Forward needs to
embrace a larger region.
“If we can work synergistically as
opposed to competing with each other
up and down the Sun Corridor and par-
ticularly Tucson and Phoenix we’re all
going to win,” Wadlington said.
Tucson Regional Economic Opportuni-
ties, or TREO, the economic development
agency for greater Tucson,
also has embraced the Sun
Corridor concept.
Among its efforts to pro-
mote the region, TREO’s
website features a Sun Cor-
ridorlink.Thelinkprovides
aneasywaytocompareelec-
tric rates, taxes and more
between Arizona and other states in the
region.
STRATEGIC ADVANTAGES
There is no Sun Corridor without Tuc-
son, said the Sonoran Institute’s Hunting.
“It’slikeaskingwhatmakesyourkidney
integral to the success of your body,” he
said.
Hunting said he believes Tucson’s dif-
ferences from Phoenix are its strongest
advantages.
“What Tucson needs to do is figure out
how to preserve that Tucson-ness while
glommingontothegiganticeconomy”that
is Phoenix and will become the Sun Cor-
ridor, he said.
One way for Tucson to do that is to main-
tainthepubliclandssurroundingit,Hunt-
ing said. A report on how Tucson’s public
landshelptoattractandretainahigh-wage
November 23, 2012 PHOENIX BUSINESS JOURNAL SUN CORRIDOR: TUCSON 13
phoenix.bizjournals.com
hoenix and Tucson – we are both cities with strong culture,
tradition, and vibrant businesses. At times the I-10 divide has led
to misunderstandings of our markets and, more fundamentally, of
our abilities to succeed together for Arizona.
As one who calls both cities home, having grown up in Tucson and
now working and raising a family in Phoenix, my take is this: Phoenix
and Tucson are partners. We collaborate more than ever on research
and innovation, the two most critical components for Arizona’s Sun
Corridor.
As described here by Gavin Milczarek-Desai, co-Managing Partner of
Quarles & Brady’s Tucson office – and the holder of a Ph.D. degree in
Molecular and Cellular Biology – Tucson has become not only a center
for researchers developing tomorrow’s new inventions but also a hub
for start-up companies. Like Arizona State University, the University of
Arizona is a key research institution and its commercialization process
is world class.
Start-ups continue to be a key factor in Arizona’s growth. Look no
further than Go Daddy, the world’s largest domain name registrar, with
limited employees at its beginning – and more than 3,200 today…in just
over a decade.
Tucson’s contributions, and collaboration, are positives for a state
seeking increased economic development – and new jobs. There is no
better place to present this information than to us, the business leaders
in Phoenix who need to be fully informed to the economic power and
innovation of our partner to the South.
To share news or your comments about
Arizona’s Sun Corridor, use #SunCorridor
on Twitter. Cheers – here’s to continuing the
conversation and taking action.
VISION: Arizona Forward group will aid in
defining how Tucson integrates into corridor
FROMPAGE11
SEE MEXICO | 14
‘‘
’’
The Business Journal has clearly cemented its high value and first-rate reputation through its years of outstanding and multi-
faceted journalism. I have authored commentaries for the Journal on a variety of topics and in particular health care which
has allowed me to clarify complex issues. Most importantly, the Journal has provided the vehicle to demonstrate how vital
health care is to our economy. Further, advertising in the Journal has enhanced the visibility of Vanguard Health Systems
and its Arizona platform, Abrazo Health Care, and the progress and new services of our facilities throughout metro Phoenix.
The feedback I have received tells me that the Journal is the expressway to reach business leaders and decision makers.
Reginald M. Ballantyne III, FACHE
Senior Corporate Officer
Vanguard Health Systems
www.bizjournals.com/phoenix
LOCATION: From north of Phoenix south to
the border with Mexico
PRINCIPALCITIES: Phoenix, Tucson
POPULATION2010: 5,653,766
PERCENTOFU.S.POPULATION: 2 percent
POPULATION2025: 7,764,211
POPULATION2050: 12,319,771
PROJECTEDGROWTH(2010-2050): 117.9
percent (6,666,005)
2005GDP: $191,036,000,000
PERCENTOFUSGDP: 2 percent
ARIZONA’SSUNCORRIDOR
Hunting

5. workforce is in the works, he said.
Preserving the geography of Tucson is
part of preserving Tucson’s lifestyle.
“We have just some fantastic, I think,
lifestyle and environmental benefits for
recreation,” Wadlington said.
Another element Tucson offers that
Phoenixdoesnotisamainlineconnection
to the Sunset Route, Union Pacific’s south-
ern rail line, which links with others lines
that extend through out the U.S.
“From a rail perspective Tucson is the
better location,” said Wadlington. “It’s
another example where we exploit what
works and don’t try to compete with what
works better for the other community.”
Two developments will further support
that advantage. For businesses that use
containerstoshiptheirproduct,theinland
Port of Tucson, a privately owned facility
just south of the city, will soon complete a
$19millionexpansioninDecember,accord-
ing to Inside Tucson Business.
The expansion will allow the Port of
Tucson to receive contain-
ers from Long Beach, Calif.,
byrail,ratherthanbytruck,
which currently is the way
containers have been trans-
ported from Long Beach,
according to Inside Tucson
Business.
Union Pacific Railroad
also is looking to expand its footprint in
the region. Just north of Pima County
in Red Rock, Union Pacific has proposed
buildinga“classificationyard”thatwillbe
usedtoswitchrailcarsandbuildtrainsfor
intermediate and long hauls, Aaron Hunt
of Union Pacific said in an email.
Cross-border commerce with Mexico
is another area where Tucson will have a
strategic advantage.
“From a connection to Mexico, Tucson
makes sense,” said Wadlington. “Guaymas
istheclosestdeep-waterport.AndGuaymas
I think is going to explode in terms of port
traffic because Long Beach is tap-out.”
WadlingtonexpectsTucsontoreapsome
of the benefits of freight traffic coming up
from and going down to Guaymas.
He admits that Tucson will not likely
be the ultimate warehousing place for
the shipments, but instead a first stop
for re-distributing shipments in all
directions.
“The opportunities are there,” said
Lea Márquez Peterson, president and
CEO of the Tucson Hispanic Chamber of
Commerce.
There are 350,000 people living in
Nogales, Mexico, Peterson said.
In Hermosillo, further south of the bor-
der between Nogales and Guaymas, Pe-
terson recently met with a group of large,
100-unit franchisors that want to expand
into Tucson.
“Allof thatisjustgreateconomicimpact
for Southern Arizona,” Peterson said.
Peterson admits since the passage of
the illegal immigration measures set out
in Senate Bill 1070, it has been harder to
lure businesses, however.
THE CROSS-BORDER PERSPECTIVE
The relationship between the Sun Cor-
ridor and the northern states of Mexico
are so related it is going to be hard to sepa-
rate them in the future, said Mark Pisano,
co-chair of the National Committee for
America 2050, a national infrastructure
planning and policy initiative.
Lookingforward,beingabletoincorporate
the northern Mexican states into an overall
economicdevelopmentstrategy“isgoingto
be absolutely critical,” Pisano said.
Right now growth rates in the Sun Cor-
ridorarelagging,andthatneedstochange,
Pisano said.
Pisano said growth rates can change
if the Sun Corridor takes
advantage of the favorable
demographic trends south
of the border. Demograph-
ics trends from Mexico to
Argentina are even more
favorable than in China or
Europe, Pisano added.
The Tucson population is
“much more receptive” to expanded cross-
border commerce than the Phoenix popu-
lation, Hunting said.
Economic and cultural connections
definitely extend across the border when
it comes to Tucson, he said.
The possibility of accessing the market
south of the border was another reason
why Duane Armijo decided on Tucson.
Initially,however,Armijosawtheborder
as a limitation.
After meeting with TREO representa-
tives, Armijo learned that shipping his
product to Mexico for installation was a
viable option and that TREO and others
in Tucson would help him navigate the
complexities.
“What that did is open up that southern
border,” Armijo said.
Connect with editorial intern Christopher Leone at cleone@
bizjournals.com.
14 PHOENIX BUSINESS JOURNAL November 23, 2012
phoenix.bizjournals.com
Copper. Creating sustainable growth from the ground up.
Using innovative extraction and processing
techniques using little water and fuel,
sustainability is at the core of how we operate.
And our dedication to the environment doesn’t
stop with our mining process; we’re working hard
to find beneficial uses for our recycled water and
ways to use the land around our site for farming,
living and growing – even while we are working.
The Element of Sustainability.
ARIZONA’SSUNCORRIDOR
What is the Arizona Sun Corridor?
The Sun Corridor is equivalent to Indiana
in size and population but will add
another Indiana’s worth of residents by
2040. Located in a desert environment,
Phoenix and Tucson — the megaregion’s
biggest metropolitan regions —
have instituted water conservation
requirements and are promoting the
use of desert landscaping. These efforts
provide the two metros with enough
water for perhaps up to 20 million
people, preparing the Sun Corridor for
current and future growth.
The region is poised to double in
population from 5 million to 10 million by
2050. The changing demographic and
economic environment in the corridor
is prompting researchers and leaders
to think about how the corridor can one
day become a significant economic,
technological and cultural center, while
growing in a sustainable way.
MEXICO: Tucson holds strategic advantage with cross-border commerce
FROMPAGE13
Peterson
Wadlington