Op-Ed reprinted from the Arizona Daily Independent

By:Hal Quin President and CEO of the National Mining Association

Last month, I met with several of Arizona’s top business and manufacturing leaders in Phoenix to discuss the current economic challenges and opportunities facing the state, as well as the mining industry’s role in supporting various pillars of the local economy. One clear consensus that emerged among these leaders: minerals are vital to local manufacturers’ operations and to a prosperous, secure future for us all.

The impacts of mineral production in Arizona minerals reach beyond the mining sector. According to a recent analysis by Arizona State University, the mining of Arizona’s mineral wealth supported more than 52,100 jobs across a variety of industries last year, while generating $4.8 billion in total income for workers, business owners and local governments in the state.

Home to roughly 1,200 aerospace and defense companies, Arizona also relies on minerals to produce the technologies that keep our troops safe and our military complex strong. From the molybdenum in missile and aircraft parts to the copper in military communications systems, minerals continue to support Arizona’s standing among the top five states for U.S. space and defense manufacturing operations.

As a leading mineral producer, Arizona is also providing vital raw materials for local and national technology companies specializing in everything from renewable energy to the latest computer and electronic products. For example, more than one ton of copper is used in a single wind turbine, 64 pounds are needed for each Toyota Prius on the road, and 16 grams can be found in each of the world’s six billion cellphones.

Arizona is also home to Resolution Copper, one of the largest undeveloped copper resources in the world that is anticipated to have a 50-year mine life supporting more than 3,700 jobs annually. But despite the state’s world-class copper reserves, U.S. innovators remain dependent on foreign imports for 35 percent of the copper they need. When considering other minerals essential to high-tech manufacturing — including zinc, silver and rare earths — U.S. import dependence is even higher. American companies are currently 100 percent import reliant for 18 key minerals that are crucial to production supply chains.

Though the United States holds more than $6.2 trillion worth of minerals that could address many import woes, an outdated and duplicative permitting process for new mining projects keeps much of our mineral wealth locked underground. As it stands, it can take nearly a decade for companies to receive approval to mine for minerals in the United States — five times longer than it takes in countries with comparably stringent environmental safeguards such as Canada and Australia.

Because of these delays, our nation’s share of global investments in metals mining has declined from 21 percent to eight percent in the past twenty years, and our reliance on foreign producers has increased. This means longer waits — and higher costs — for raw material deliveries, as well as a loss of predictability in production timelines.

Fortunately, some in Washington realize the severe consequences of our nation’s lagging mineral production. In September, four members of the Arizona congressional delegation joined the House of Representatives in passing the bi-partisan “National Strategic and Critical Minerals Production Act of 2013” (H.R. 761), which would facilitate more efficient development of U.S. mineral resources. Notably, this proposal would not in any way minimize or hinder the environmental review that is an important part of the permitting process. In fact, the legislation encourages better interaction and coordination when multiple agencies, such as the Bureau of Land Management, Forest Service and the Environmental Protection Agency, are involved in permitting.

High-tech pioneers in Arizona and across the nation need a minerals policy that promotes domestic minerals production rather than hinders it, and H.R. 761 could supply manufacturers with the raw materials they desperately need while buttressing our national security establishment. By revisiting our inefficient permitting process, the United States will not only remain at the helm of global innovation, but will see growing job numbers, a healthier economy and a stronger military. If ever there was an opportunity for bi-partisan cooperation to see Arizona flourish, this is it.

Quote of the Week at National Mining Association Website:
“The essence of American progressivism is ‘You will participate in what we have created for you, and you will comply with the law’s demands. Ask the coal miners the EPA is putting out of business.” – Daniel Henninger in the Oct. 31 Wall Street Journal

PHOENIX – John A. Dobrott, President – Industrial Division of Conor Commercial Real Estate, a member of The McShane Companies, is pleased to announce that Sean D. Cummings has been promoted to Vice President of the firm’s Southwest regional office.  Cummings will be headquartered in the firm’s office in Phoenix, Arizona, managing development activities within a wide variety of market sectors throughout Arizona and the southwest region.  He will provide strategic direction and management of Conor Commercial’s land selection and acquisition, feasibility/underwriting, entitlements, holdings, speculative development, build-to-suit opportunities, financing, leasing and disposition activities.

Cummings joined the McShane organization in 2005 as Development Manager in the firm’s corporate headquarters in Rosemont, Illinois.  He was promoted to Senior Development Manager and relocated to McShane’s Phoenix office in 2006.

His recent development assignments within the Phoenix and southwest region include his participation on the development team for 4600 E. Washington, a six-story, 186,000 square foot, Class A office building; the two-building, four-story, 228,000 square foot East Gateway Centre office complex; the 1.1 million square foot multi-building McShane Westside Industrial Park; and a 566,875 square foot industrial speculative building in Reno, Nevada, that was leased in full to Amazon.com, among others.

Most recently, he has been instrumental in the firm’s turnkey development of a 60,000 useable square foot Outpatient Clinic for the U.S. Department of Veterans Affairs in Gilbert, Arizona. Cummings also leads the marketing efforts for Phoenix Logistics Center, a multi-building, 150-acre development in Phoenix and is actively completing the due diligence for another large industrial park within the area.

“Throughout his career with the McShane organization, Cummings has consistently demonstrated the expertise and dedication necessary to provide skilled development services to our clients,” remarked Dobrott.  “His knowledgeable and insightful execution in acquisitions, leasing, asset management, ground-up development and the disposition of assets in a variety of market segments have contributed to the successful positioning of the McShane organization and Conor Commercial Real Estate as a leading provider of real estate and development services within the region.”

Cummings holds a Master of Business Administration from DePaul University and a Bachelor of Arts – Finance from Michigan State University.  He is a member of the Greater Phoenix Economic Council, the Arizona Chapter of NAIOP (Commercial Real Estate Development Association), the Urban Land Institute and the U.S. Green Building Council.  Cummings can be reached at:

Cummings should be contacted at (602) 515.0884  or at [email protected]

Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz for the day will be.

The Dow Jones Industrial average rose 167 points, or 1.1%, to close at 15,761 on Friday. The Standard & Poor’s 500 rose 23 points, or 1.3%, to 1,770. The NASDAQ composite rose 61 points, or 1.6%, to 3,919. The price of oil rose 40 cents Friday to close at $94.60 a barrel.

SURPRISE! US ADDED 204,000 JOBS IN OCTOBER

WASHINGTON – Despite all the warning to expect the contrary, a burst of hiring in October added a surprisingly strong 204,000 jobs to the economy in a month when the government was partly shut down for 16 days. And employers added far more jobs in August and September than previously thought. The unemployment rate rose to 7.3% from 7.2% in September, the Labor Department said Friday. But that was likely because furloughed federal workers were temporarily counted as unemployed. The surge in jobs shows the economy was stronger in October than many economists had expected. Activity at service companies and factories also accelerated last month, an earlier report showed. The figures signal that many U.S. companies didn’t bother or perhaps liked  the government partial shutdown.

TUESDAY NOV 13: TUCSON EMPLOYEE COMPENSATION AND FY13 FINANCIALS ON AGENDA

TUCSON – At their Study Session next Tuesday, November 13th, Mayor and Council will hear a report from staff on preliminary unaudited FY 2013 financial results for the General Fund and provide an update on the 1st quarter General Fund financial results. This report will show a General Fund fund balance of about $54M, which is about $8M less than the previous year. At their Study Session November 26th, M&C is expected to consider three possible increases to employee compensation upon review of fund balance information contained in this report. M&C memo on preliminary unaudited FY 2013 financials: https://1.usa.gov/195PJ6u

STITELER EXPECTS TO BREAK GROUND ON 7-STORY, 150-ROOM HOTEL

TUCSON – Developer Scott Stiteler says his upcoming downtown hotel project, a 150-room, seven-story tower at the Northwest corner of Fifth and Broadway, is now about two months into its design phase. The hotel, tentatively to be called AC Tucson, will reflect the European boutique style of the AC Hotels brand, which Marriott acquired in 2010 and will soon reveal across the country, mostly in major urban centers like Manhattan, San Francisco, Chicago, and Miami. The average daily rate would be about $145, Stiteler told the Rio Nuevo board in July. Stiteler said the hotel is now about two months in to its design phase. Project leaders have traveled to Spain, the birthplace of the AC brand. He expects construction to begin this summer, with the hotel completed about a year and a half later.

BERNANKE: FED HAS GREATER POWER TO COMBAT CRISISES NOW

WASHINGTON (AP) — Chairman Ben Bernanke says the Federal Reserve is drafting rules to close large insolvent banks without bringing down the broader financial system, one of many steps regulators must take to prevent another financial crisis. Bernanke says the absence of a process to deal with systemically important institutions in 2008 left regulators facing the “terrible choices of a bailout or allowing a potentially destabilizing collapse.” Bernanke is making the comments at a conference sponsored by the International Monetary Fund Thursday. The financial overhaul law passed by Congress in 2010 gave regulators better tools to close down large financial institutions, he said. The Fed and other regulators are working to implement those rules now.

SAC CAPITAL PLEADS GUILTY IN $1.8B DEAL

NEW YORK (AP) — SAC Capital Advisors has pleaded guilty to criminal fraud charges in a record $1.8 billion deal with the government. The company’s longtime general counsel Peter Nussbaum entered the plea to wire fraud and securities fraud Friday in Manhattan. But a federal judge didn’t immediately accept the plea, saying she’d wait until a probation report is made. The plea comes four days after the federal government announced it had reached a deal requiring the largest penalty ever for insider trading. The deal requires the Stamford, Conn.-based hedge fund to close its business to outside investors. It also allows prosecutors to continue its criminal investigation and spares no individuals from scrutiny, including its founder, Steven A. Cohen. Cohen was accused by federal regulators over the summer in a civil action of failing to prevent insider trading at the company. He has disputed the allegations.

US CONSUMER SPENDING SLOWS TO 0.2% GAIN

WASHINGTON (AP) — U.S. consumers slowed their spending in September, even as overall income grew at solid pace for the second straight month. Consumer spending rose 0.2% in September, after at 0.3% gain the previous month, the Commerce Department reported Friday. Americans cut spending on long-lasting manufactured goods 1.3%. That partly reflected a drop in auto sales. Labor Day weekend auto sales were counted in August. Income rose 0.5% in September, matching the August gain. The increases in both months were the strongest since February. September’s gain was helped by the end of government furloughs, which had reduced federal pay in the previous two months. The gain in income and the slowdown in spending meant consumers saved 4.9% of their after-tax income, up from 4.7% in August.

DALLAS FIRM TO BUILD BRAIN TREATMENT INJURY CENTER IN SURPRISE

SURPRISE, AZ – A $15 million medical facility specializing in the rehabilitation of traumatic brain-injury patients would bring 125 new jobs to the city by fall 2016 under an agreement expected to be approved next week by the City Council. The deal, with Dallas-based Cobalt Medical Treatment, would pave the way for construction of a 50,000-square-foot Advanced Rehabilitation Center on an approximately 5-acre undeveloped tract off Bell and Dysart roads. Surprise officials would use $160,000 from the city’s economic-development contingency fund to pay fees associated with the project, including development review, civil construction review, civil permit, building permit and plan review. The firm must obtain a certificate of occupancy by Aug. 1, 2015. “A project like this aligns perfectly with the Council’s Strategic Plan,” said Mayor Sharon Wolcott after the plan was presented by officials from the city and Cobalt to the council Tuesday night at City Hall, 16000 N. Civic Center Plaza. “Job creation and the recruitment of new health care operations are cornerstones of the plan.” Full story

MOHAVE COUNTY DECIDES AGAINST WOULD-BE DEVELOPERS

KINGMAN – The Mohave County Board of Supervisors may have put the final nail in the coffin of any commercial development on 285 acres of the former Silverado master planned community. The Board unanimously denied allowing developers more time to meet the conditions of rezoning the property from residential to general commercial/highway frontage after hearing from three residents opposed to the extension Monday. The land is located along both sides of U.S. 93 between Hidden Valley Drive and Hackberry Road. See full story in the Daily Miner.