SUBS looking out for Business

August 12, 2010

To Supporters and Business Owners:

          The Tucson business and citizens have much to consider in the next several months. Please educate yourselves your employees, friends and families on supporting candidates and issues that support responsible and successful business as well as government and community practices that can help us build a more balanced and successful community. “Success is found through commitment to a process that achieves positive results.”

          Please pass this on to your business associates so they too can get better informed and involved. If you have any questions, please don’t hesitate to contact SUBS. 

Below are three issues for your consideration.

1.    Primary elections – Candidate page: http://www.substucson.com/candidates.asp

Review the candidates and educate yourself on who supports good business and responsible government and please vote. Voting is a privilege and a responsibility.

Note: As of 8-11-10, CD8 Candidate Brian Miller has withdrawn his name for consideration.

 2.    City Sales tax, proposition 400 on the November ballot:

The City of Tucson is going to ask voters to approve a half cent sales tax (Proposition 400). It is my opinion that this is not the answer to the budget issues. The City Manager threatens public safety cuts if we don’t’ pass this tax. I for one refuse to be threatened or held hostage by anyone to make a decision, especially our appointed or elected officials. This City Council has refused to address the underlying issues that affect the budget problem. They failed to educate the voters on Home Rule last year and lost access to $20 Million. They refuse to raise bus fares to a responsible fee and don’t work well with the Pima County on finding ways to mutually save tax payer dollars by merging some services. They are not willing to address the structure of the budget. And, for the last two years they have been warned of this situation, but failed to act. Now they want the city businesses to tell their customers they have to charge more to buy in the city. This will drive businesses out of the city. Finally, they have done little to invite or encourage wealth creating businesses to develop. This tax is not the answer and threatening people’s safety is not an acceptable option to their budget problems. Let your Councilmember and Mayor know how you feel about this idea.

3.    City Charter Changes, proposition 401 on the November ballot:

Visit www.tucsoncharterchange.org and get the details on the proposition.

On a positive note we can do something to change the way the city does business. The Tucson Charter Change Coalition presents a beginning to bettering Tucson Government and responsiveness to citizens.

 Story: From Inside Tucson Business   Proposal advanced to give city leaders more responsibility Move Tucson Forward

It may take a three-step “recovery program” for Tucson city government to shake its anti-business reputation. Two steps already have been taken and the third; changing the city charter - is moving along.    

          “The goal is to create a structure that fosters leadership. When we come out of this recession, we have to make sure Tucson is positioned to take advantage of business opportunities,” said Ron Shoopman, president of Southern Arizona Leadership Council, in a presentation at last week’s Move Tucson Forward: One Year Later forum. “A healthy economic base is needed to move the community forward.”     

For more of this story, click on or type the URL below:

http://www.azbiz.com/articles/2010/04/30/news/doc4bdb26e9d4055001430356

4.    Move Tucson Forward video from April 28^th on the home page:  www.substucson.com. Topics include, Charter Changes, Rio Nuevo, Spring Training opportunities, Rosemont Copper and special guest Mike Stoops. A special thank you to our guest speakers for their time and commitment to making this a better community for all of us. It’s worth your time to view.

“Without a strong and viable business community we will not have the resources to sustain our economy and support the growing needs of our community.”
Rick Grinnell

 Thank you for your attention to these important matters.

 Rick

 Rick Grinnell, Founder, Lobbyist

Smart United Business Strategies,  Inc.

rick@substucson.com

The City Council has again failed to take the disciplined steps necessary to manage the budget and placed a half cent sales tax on the ballot to bail them out.

Council Member, Shirley Scott said the Citizens’ Committee wanted this option, but failed to recognized that they appointed people who supported their tax and spend agenda.

The Mayor and Council Members, Cunningham and Kozachik voted against putting this measure on the ballot.

The City Manager is threatening Public Safety cuts, but he along with Mayor and Council failed to inform and obtain voter approval on home rule which would have given the City about $20 Million to work with.

They talk about cost recovery on business matters, but are unwilling to raise bus fares to help offset a $32 Million transportation subsidy!

This tax will hurt Tucson Businesses and our Citizens!  It will drive business out of Tucson.

In many ways, Copper is the essential element to a green economy. Renewable, sustainable energy sources and new technologies will require tremendous amounts of copper, with the average person already using more than 1,500 pounds of copper in a lifetime.

New transmission and distribution systems for renewable energy will require millions of pounds of copper. A single wind energy turbine contains more than one ton of copper, and hybrid cars use twice the copper of their traditional counterparts.

The list goes on and on:  Copper is necessary for distributing solar heated water, and copper pipes remain the most energy efficient option. New low-cost photovoltaic solar panels rely on copper, and new technologies and their copper wiring will play a key role in Arizona’s future economy.

Yet while our renewable future depends on copper, today 34 percent of our supply comes from foreign countries.

That is one reason why the General Mining Act of 1872 continues to guarantee the ability to mine claims such as Rosemont Copper’s that are essential for lowering our dependency on foreign copper.

Located in an existing mining district on the east side of the Santa Rita Mountains, Rosemont Copper will set a standard for sustainable practices, including using solar power, consuming less than half the water as traditional mines, and reclaiming the site as permanent open space while recontouring and  revegetating throughout the life of the mine.

Rosemont is committed to import water from the Central Arizona Project Canal to recharge pumped groundwater, ensuring neutral impact to local groundwater sources.  Rosemont has also agreed to guarantee the viability of private wells in the pumping vicinity near Sahuarita.

Permits will only be issued once proper environmental protections are ensured by local, state, and federal agencies.

Dramatic Economic Benefits

A recent economic assessment, independently conducted by Arizona State University and released by the Arizona Department of Mines and Mineral Resources (DMMR), shows a significant boost in local, state and national economic impacts from Rosemont Copper, adding an average of 4,200 jobs each year and increasing revenue by $681 million to the State of Arizona – with lasting economic benefits even after the project is completed.

The study, conducted by the L. William Seidman Research Institute at ASU’s W. P. Carey School of Business, looked at economic impacts in Cochise, Pima and Santa Cruz Counties as a single region, and assessed the effects on the State of Arizona as a whole as well as on the United States.

The combined economies of three counties will realize t $15 billion in new economic activity because of Rosemont Copper’s production. This will result in $140 million per year in additional income to residents, and $19 million per year more to local governments, as well as a total of 2,100 additional jobs for residents of the three-county area.

Direct employees of the mine will receive an average annual salary of $59,000.

Statewide, Arizona is expected to gain significantly. The project’s four-year engineering and construction phase alone will yield an average annual increase of $122 million in economic activity, $45 million per year in additional income to state residents, and $6 million per year in revenues for the state government.

During the active life of the project, the State of Arizona will see an average annual increase of $907 million per year in economic activity, $214 million in residents’ income, and $32 million in state revenues. The project will support 800 additional jobs for Arizona residents above the 2,100 jobs added in the local area.

The permanent positive impact of Rosemont Copper on the statewide economy, even after the project’s completion, includes $111 million more per year in economic activity, a $96 million annual boost to residents’ incomes, 500 more jobs and $4 million more each year to the state’s government revenues than if Rosemont had never existed.

There are economic benefits to the nation as well.

Rosemont Copper will add $1.3 billion per year to the U.S. economy, 1,300 additional jobs for US residents (on top of the 2,900 new jobs for Arizonans), $352 million a year in additional income to American residents, and $128 million in federal government revenues.

Over this entire period, total gains to the U.S. economy add up to $27 billion in output, $15 billion in gross domestic product, $8 billion in personal income and $3 billion in federal government revenues.

The economic analysis is based on conservative prices of $1.75 per lb. for copper, $15.00 per lb. for molybdenum, and $10.00 per ounce for silver.

The full economic study is available at www.mines.az.gov.

Honoring Arizona’s Mining Past

From the early Native Americans who dug for minerals, to the rugged pioneers who settled the state in search of a better life, to the hard working men and women today who produce more copper than every other state combined—mining has always been a part of Arizona.

Rosemont Copper’s vision is to utilize the latest mining technology and best practices to create a bridge from Arizona’s mining past to a high-tech, renewable future, providing more than 10 percent of the U.S copper supply while using half the land area of older Pima County mines.

Along the way, the project’s dramatic economic benefits promise to give the Arizona economy a much-needed boost, and put thousands of people to work.

To learn more about Rosemont Copper, visit www.RosemontCopper.com.

January 10^th, 2010

To Supporters and Business Owners:

            Since I last emailed you regarding the state of the City, County and State politics much has taken place and yet much stays the same. All three governmental entities are struggling with budget issues. Candidates are coming out of the woodwork to run for office, the local business community is more fractured today than a year ago with the onslaught of attacks against the Chamber, MTCVB and TREO. A parallel group is launching a recall against Council Members Uhlich and Romero along with Mayor Walkup and the Rio Nuevo District Board is being redesigned by the Governor, House Speaker and the Senate President.

            The County is grappling whether or not to run a bond election this year and the Phoenix Leadership Group is launching a campaign to raise the State sales tax by 1/10 of 1 % to funds arts. And the Pima County Sports and Tourism Board is trying to decide on whether or not to run an election to add a dedicated tax for economic development of youth, senior, armature and professional sports. Of the three issues noted, the Sports Authority is the only dedicated funding source for real economic impact to this region. I must note that I am a board member here and personally do support this effort. Our supporters will have their say in all the matters.

            Having given you a brief update, I am and will continue to put forth opportunities for success of our region. We spent much time and financial resources promoting business issues and getting our business community educated about the last election. We were part of a big effort by many to elect one business minded candidate and we have found more allies on the City Council as a result. We made the City budget an issue and we are now starting to realize the fruits of our labors, but much more needs to be done. We were also acknowledged by the media, other business organizations and the elected bodies as a group willing to do the leg work on finding solutions, not just yell about them. We made progress, but much more is needed to make Southern Arizona a great place to live and work so all can realize their vision. Without a strong business environment we will have little for others to benefit.

            As I may agree that changes are needed in a variety of the ways the business community does things, I personally do not agree with the process being taken against Jack Camper. I don’t think making things personal accomplishes anything but to further build divides among the business community. The recall is for real, but again further broadens the gap between business and government. The Mayor in this form of government has little legislative authority and it is the system that needs changing with respect to the powers of the Mayor. I want to give the benefit of the doubt and trust he will be more assertive with the two newly elected council members and an overall attitude adjustment towards business.  I do agree the two Council Members should consider alternate careers, however there is a regular process and this will further cost the tax payers additional financial resources that may not be readily available. This is my personal opinion and I respect the rights and the supporters of the recall to do as they feel appropriate. Many are personal friends and I will continue to treat them as friends, respectfully disagreeing on this issue.

            I committed to be operate with respect, responsibility and discipline and to focus on principles, not personalities and will maintain this commitment. I do not tell people how to vote, whom to support or what efforts they should or should not participate with. I will provide non-partisan business information for each Supporter and Friend of business. The final choice is yours, not mine.  Given all that is going on I am outlining some ideas and efforts that I believe this company and its supporters can successfully champion.

 A Vision of Action:

1.    Non partisan elections and Charter Changes: We are working with the Southern Arizona Business Round Table subcommittee on addressing some much needed charter changes over the next couple of years. Ideas that have come back are; Mayor and Council parity, Strong Mayor form of Government and Annexation for the whole region, elimination of the 6 mile rule for incorporation. The latter needs to be addressed by the Legislature and I will keep you apprised on the progress of this effort. Further the City of Tucson should stop the opposition of the recently passed legislation and let Non-Partisan elections stand. This could also save tax payer monies.

2.    We have spoken at length about consolidating government, but what about doing the same with economic development entities and chambers: Joining together and privatizing Economic Development, except MTCVB statutory funding of the 33% bed tax, where all of us working in unison to reach our goals. I am recommending that we start with the TMCC, TREO and the MTCVB. We may have different disciplines, but we can work better together than we have been and each constituency will have a better idea of what the others are doing. We can address the concerns of all the regions from a centralized position of power and become the basis for real economic growth. As this success begins other chambers can become a big part of this process and reduce the cost of memberships by businesses and duplication of efforts. A unified business voice is needed to advance our goals. This is a touchy subject and many will be unhappy about this idea, but how can we ask government to do things the business way when we find ourselves doing things the government way. This is a real discussion that needs to be had. Note: I do not include the trade organizations as they provide a special relationship that should be maintained with their members. Trainings and the like are valuable tools for each of these organizations and should be maintained.

3.    Regional Purchasing by Government: City, County and TUSD coordinate purchasing of like items to establish leverage, reduce cost and avoid duplication of purchases. We could even consider a regional purchasing department to cover like resources needed to be used by the three entities. Again, this would require that egos get out of the way and get things done in a more congruent fashion.

4.    Website: Continue with the Candidate page for all the races and submit business questions so each of them can respond to the business community on a regular basis. We need to ask the hard questions on a regular basis as things are changing week by week. We need to let them know our voices need to be heard and they should be accountable to the people who generate the taxes to support government.

5.    Support the candidates and elected officials that support good business and responsible government: Then we need to be disciplined about which candidates to support. Incumbents assume business should donate to protect their interest, but all this does in enable bad government. Make incumbents and candidates accountable before giving. If they don’t support good business practices by government, quit giving them money.

6.    Find political leadership, including school boards, city, county and state: This requires us all to get involved and support the changes needed to move us forward. We are facing another round of very important elections and we must challenge all candidates to either prove they’ve acted in our best interest or elect those that will. We have no other way to change the way government does business. We can devise a Metro Government, merge budgets and complain all we want, but until we have real leaders we can’t do anything. So get off your political couches and educate your employees, family and friends on the importance of evaluating the candidates and voting for a real opportunity to make changes. We must have elected people that understand how business works and are willing to engage our ideas as part of their total responsibility. We can build a balanced city.

7.    Expanding involvement with our next generation of business and political leaders is an integral part of this process: Help elevate our next generation of business persons to get involved in school boards and local politics. Educate, encourage and enhance the lives of these fine people with your experience, wisdom and understanding. Pass the torch to the next generation. It’s not so much what we have that is important, it’s what we leave for the next generations to build upon that make our presence invaluable and our legacies memorable.

8.    Embrace new business opportunities: With all that’s been said with respect to taxes, budget cuts and a myriad of other fearful messages regarding business, I would ask they we look at the opportunities to promote new businesses and wealth creation. Over the next couple of months I will explore with you new businesses that want to start up, and what they are bringing to the table.

                                    Steve Emerine - Inside Tucson Business, December 15th, 2008

“If local elected officials and business leaders want to rebuild Tucson’s
downtown and hang onto our tourism and convention business, gem and
mineral shows, spring training baseball, professional golf tournaments
and other attractions for residents and visitors alike, they can.
But if government and business leaders don’t lead, can’t unite the community
and don’t want to be bothered with local problems, we are all the losers.

We have to decide collectively that when times get tough, the tough do indeed get going.”

Thank you and we need more support: I want to thank those of you that have supported our efforts financially and our media partners for their help in getting the word out. We have made real progress because of your support and now I’m asking you to invite a fellow business owner to do the same.  We are moving forward in a positive way and we have done so with respect, responsibility and discipline. We have become and will continue to become a voice for real change in the way our political policies affect us. We are taking action and I need your help in keeping this moving forward.

Your financial help is important, but your educated participation in change is invaluable.

            Who: Smart United Business Strategies, Inc. (SUBS) is a private non-partisan for profit-corporation established to act as a business lobbyist for the betterment of Tucson and the surrounding communities. We will advocate with clarity, confidence, and the conviction necessary to achieve our objectives. We have a commitment to making REAL change happen.

            Mission Statement: Our mission is to make Tucson and Southern Arizona a desirable place to live, work, and interact in. We will implement strategies critical to healthy community growth and stability, supported by an active business contingency and a neutral political environment. This is absolutely critical to our future success.

            Community Message: For too long the business community has let apathy about our government rule. Without a strong and viable business atmosphere we will not have the resources to sustain a working economy. We can co-exist with the neighborhoods and the surrounding beautiful desert in a positive manner and enlightened environment when we work together. We are going to grow and we must do so in an efficient strategic manner! We must walk the talk.

Respectfully Submitted,

Rick

Income Generation Vs. Wealth Creation

Many people confuse income generation with wealth creation.  These are two very different concepts.  Income generation simply means increasing the number of financial transactions so money more frequently changes hands.  If I go to McDonalds and buy a hamburger, McDonalds can then pay an employee who goes out and buys clothes and the cycle continues.  Commerce is essential and good but it has its limitations.  The problem with these very simple transactions is that they do not increase the supply of money in the community.  Money simply changes hands.  Commerce is almost entirely a private sector affair.  Very little public sector support or intervention is needed for commerce to flourish.  In fact, the less government the better.

Commerce in Tucson is typically fairly healthy because we have a large number of tourists and retirees who bring their income from other areas to buy goods and services.   So, when times are good commerce increases and money continues to change hands.    When a recession hits, however, the tourists stay home and retirees stop moving here.   Money for commerce dries up.  The other problem with simple commerce is that we are almost entirely dependent on people moving here for income to grow.  Our population, and the city footprint, must constantly grow to create more income that creates the demand for more growth.  Many people are opposed to seeing Tucson grow so there is constant friction between the “growth” and “environmental” camps.

Wealth creation, on the other hand, means exploiting existing resources to produce goods and services that can be exported outside of the region and around the world.  Wealth can be used over and over again.  It has a multiplier effect that exists independent of commerce.  Wealth creates income but the multiplier effect is much more robust and it does not depend solely on population growth or attracting new consumers to the region.  Wealth is renewable and produces the goods and services that can be exported and create income for many, many years or perhaps even forever.

198 W. Franklin St.  Tucson, AZ. 85701

520.624.0231

www.substucson.com

Income Generation

Vs.

Wealth Creation

Many people confuse income generation with wealth creation.  These are two very different concepts.  Income generation simply means increasing the number of financial transactions so money more frequently changes hands.  If I go to McDonalds and buy a hamburger, McDonalds can then pay an employee who goes out and buys clothes and the cycle continues.  Commerce is essential and good but it has its limitations.  The problem with these very simple transactions is that they do not increase the supply of money in the community.  Money simply changes hands.  Commerce is almost entirely a private sector affair.  Very little public sector support or intervention is needed for commerce to flourish.  In fact, the less government the better.

Commerce in Tucson is typically fairly healthy because we have a large number of tourists and retirees who bring their income from other areas to buy goods and services.   So, when times are good commerce increases and money continues to change hands.    When a recession hits, however, the tourists stay home and retirees stop moving here.   Money for commerce dries up.  The other problem with simple commerce is that we are almost entirely dependent on people moving here for income to grow.  Our population, and the city footprint, must constantly grow to create more income that creates the demand for more growth.  Many people are opposed to seeing Tucson grow so there is constant friction between the “growth” and “environmental” camps.

Wealth creation, on the other hand, means exploiting existing resources to produce goods and services that can be exported outside of the region and around the world.  Wealth can be used over and over again.  It has a multiplier effect that exists independent of commerce.  Wealth creates income but the multiplier effect is much more robust and it does not depend solely on population growth or attracting new consumers to the region.  Wealth is renewable and produces the goods and services that can be exported and create income for many, many years or perhaps even forever.

A wealth creation strategy is one that coordinates public policy and private resources to take advantage of existing strengths that can be turned into enterprises to produce goods and services that can be exported. 

There are 5 ways and only 5 ways to create wealth:

1.  Take it out of the ground (mining,  farming, etc.)

2.  Turn raw materials into marketable goods (manufacturing, construction)

3.  Take it out of someone’s head (new technologies, consulting services)

4.  Have people pay you to see what you did not take out of the ground (eco-tourism)

5.  Provide transportation facilities for shipping services (transportation and warehousing hub)

A good wealth creation strategy would identify, coordinate and package the natural strengths of the region so that they could be easily accessed by private individuals who understand how to use them to produce and distribute goods and services.  Education, public safety, transportation, natural resources, governance, regulation and financing are all crucial to this effort.  To be effective, we need a true partnership between the public and private sector with the primary goal being wealth creation that will ultimately benefit all our citizens.

Courtesy of:

Rick Hodges

May 27, 2009

Today the Tucson City Council not only raised the hotel bed tax, but they also cut the Metropolitan Tucson Convention and Visitors Bureau budget:  What are the unintended consequences:

1.   Put local hotels at a competitive disadvantage with their competition outside Tucson. This tax will drive business outside the city limits and cause the city to lose not only bed taxes but sales taxes on business done outside our city limits. This is not fair. Who are they working for?

2.   The $1.8M anticipated revenue will not be realized by adding this tax. At this time of economic stress, our visitors will do business elsewhere.

3.   Jeopardize Spring Training and Youth and Amateur Sports.

4.   Reduce marketing dollars to bring business to Tucson.

Tourism generates $2.3 Billion a year and now the Tucson will get less of that.

We still have time to let our voices be heard. Call or write Mayor and Council and let them know tourism is important to you.