CHICAGO, ILL. — Cushman & Wakefield has filed registration with the SEC for an initial public offering (IPO). The number of shares to be offered and the price range for the proposed offering have yet to be determined.
Chicago-based Cushman & Wakefield is among the largest real estate services firms in the world with 48,000 employees in approximately 400 offices and 70 countries. The 101-year-old firm, which reported revenues of $6.9 billion last year, manages approximately 3.5 billion square feet of commercial real estate space on behalf of institutional, corporate and private clients.
The company could seek to raise about $1 billion in the IPO and seek a valuation in excess of $5 billion, according to The Wall Street Journal.
In its filing, Cushman & Wakefield states five strategies for growing revenue and profitability: hiring top talent; expanding margins; leveraging breadth of services; deploying capital around its infill M&A strategy; and utilizing technology.
The decision is likely a move to better compete with CBRE and JLL, both of which are publicly traded entities. CBRE’s revenue for 2017 was $14.2 billion while JLL’s was $7.9 billion. Cushman & Wakefield ranked No. 3 on Lipsey’s 2017 Top 25 Commercial Real
Underwriters include a group of banks led by Morgan Stanley, J.P. Morgan, Goldman Sachs and UBS Investment Bank.
Prior to the closing of the proposed offering, Cushman & Wakefield will restructure from DTZ Jersey Holdings Limited to a public limited company incorporated in England and Wales to be named Cushman & Wakefield plc. DTZ purchased and merged with Cushman & Wakefield in 2015.
The Shoppes at Rogers Ranch Shopping Center in Phoenix Sell for $10.65 Million
PHOENIX, Arizona – CBRE has completed the sale of a 100 percent occupied shopping center located at the northeast corner of 51st Avenue and Baseline Road in Laveen, an urban village located within metro Phoenix. The nearly 34,575-square-foot retail property has a complimentary mix of tenants, including Jimmy John’s, Native Grill & Wings, Little Caesars Pizza, AT&T, AutoZone and Taco Bell, among others. The property commanded a sale price of $10.65 million, or $308 per square foot. The Taco Bell and AutoZone were ground leases.
Joseph R. Compagno and Andrew K. Fosberg with CBRE’s Phoenix office represented the seller, Kent, Washington-based investor as well as the buyer, a Newport Beach, California-based institutional capital buyer. New interest only bank financing was completed by Bruce Francis, Vice Chairman for CBRE Capital Markets and Western Region Manager for CBRE Debt & Structured Finance.
“We generated eleven offers for ownership during our marketing period,” said CBRE’s Compagno. “We found the Newport Beach, California based institutional buyer in our proprietary global database of investors. The buyer placed very attractive new bank financing on the property through CBRE.”
The Shoppes at Rogers Ranch is located less than one mile east from the future location of the new Loop 202 interchange along Baseline Road. Roadwork has begun on the approximately 22-mile extension of Loop 202 that will connect the West Valley and Southeast Valley, bypassing downtown Phoenix. The South Mountain Freeway will connect Interstate 10 in Chandler to the Interstate 10 in West Phoenix, and will follow Pecos Road through Ahwatukee and head north near 59th Avenue through Laveen (Source: AZDOT).
Major Road Projects move forward for SR 189, I-17 and SR 260 to improve commutes, freight travel
PHOENIX, Arizona – A major freight corridor in southern Arizona that moves trucks to and from Mexico for produce and other goods will undergo a full build-out of improvements over the next few years now that the State Transportation Board formally approved the funding for the project.
The board approved the two planned construction phases for State Route 189 at its meeting in Globe on Friday, June 15. Other major expansion projects along key commerce corridors including Interstate 17 and US 93, along with State Route 260, were also approved as part of the annual update to the Arizona Department of Transportation’s Five-Year Transportation Facilities Construction Program.
The 2019-2023 Five-Year Program includes projects in Greater Arizona, Maricopa County and Pima County regions. The final approval of the program followed a three-month comment period allowing the public and agencies to provide feedback.
This annual process of delivering key projects is a careful balance between assessing priorities and working within our funding constraints.“ADOT’s mission is to provide reliable infrastructure to help move people, goods and services, generate commerce and economic activity, and connect major freight and travel corridors,” ADOT Director John Halikowski said. “This annual process of delivering key projects is a careful balance between assessing priorities and working within our funding constraints.”
The 2019-2023 Five-Year Program also reaches the department’s goal of allocating at least $260 million per year for preservation of bridges and highways throughout the state highway system. In addition, ADOT has proposed increasing the amount of preservation funding to $320 million per year during the next six to 10 years as part of the recently adopted Long-Range Transportation Plan.
Preservation projects include repaving highways, filling potholes, extending the life cycle of existing pavement, and repairing or reconstructing bridges.
The State Transportation Board’s approval of the Five-Year Program followed a call for public comment in March and three public hearings in Sahuarita, Flagstaff and Phoenix. In general, major projects begin as part of the agency’s long-range visioning process, move into a 20-year plan and a six- to 10-year development program and then become part of the Five-Year Program, which is developed by working closely with local planning organizations and community leaders to identify projects that are ready to build or design.
Funding for the Five-Year Program is generated by the users of transportation services, primarily through gasoline and diesel fuel taxes and the vehicle license tax. Both the Maricopa and Pima county regions have independent revenue streams established through voter-approved sales tax increases that allow for more expansion projects to take place.
The following is a list of major projects for Greater Arizona, the Maricopa Association of Governments (MAG) region and the Pima Association of Governments (PAG) region during the next five years. This list provides an overview and does not include all projects in the program. The 2019-2023 Five-Year Program, once published next week, can be found at azdot.gov/fiveyearprogram.
Greater Arizona Projects
State Route 189, Nogales to Interstate 19: Total cost is $134 million allocated in fiscal year 2019 for both phases of this design-build project. ADOT is moving forward with these improvements along SR 189 to ensure international commerce can efficiently and safely travel between Arizona and Mexico at the Mariposa Port of Entry, one of the busiest land ports in the United States. More than 7 million vehicles cross the port every year, including 350,000 commercial trucks. The move will get commercial trucks off surface roads used by commuters in Nogales. Building the entire project at one time, which will save about $13M, is possible because of funding from a variety of local, state and federal sources, officials said. Construction of the new flyover ramp is expected to begin next year.
Interstate 17: Anthem to the Sunset Point Rest Area: This project allows for the design and widening of I-17 in areas between Anthem and Sunset Point, with specific areas and projects still under study.
$15 million (ADOT) and $10 million (Maricopa Association of Governments) for design in FY 2019; $168 million for widening in FY 2021 and FY 2022 (this includes $128 million from ADOT and $40 million from MAG)
US 93: “The Gap” Tegner Drive to State Route 89: This project will widen a 3-mile stretch of US 93 near Wickenburg to a four-lane divided highway.
$5 million for right of way in FY 2019; $41 million for construction in FY 2020
ADOT and city of Flagstaff partnership project: $10.2 million allocated in FY 2020 to expand the Fourth Street Bridge over Interstate 40 in Flagstaff.
US 93/Interstate 40: West Kingman traffic interchange: $10 million allocated for right of way in FY 2020 for this new traffic interchange in downtown Kingman. Construction is expected to begin in FY 2024 and is projected to cost $55 million. ($5 million was allocated for design in FY 2018)
State Route 69: Prescott Lakes Parkway to Frontier Village: This partnership project with ADOT and the Central Yavapai Metropolitan Planning Organization will widen a 1-mile stretch of SR 69 to three lanes in each direction and add safety improvements.
$1.3 million for right of way and utilities in FY 2020; $8.7 million for construction in FY 2021
State Route 260: Lion Springs section: This project will widen the last section of SR 260 near Star Valley, reaching ADOT’s goal of completing a four-lane divided highway along the entire length of the corridor.$5 million for design in FY 2021; $45 million for construction in FY 2023
US 93: Cane Springs section: This project will widen a 3-mile stretch of US 93 north of Wikieup and is part of ADOT’s commitment to transform all of US 93 into a modern, four-lane divided highway.
$5 million for design in FY 2021; $35 million for construction in FY 2023; $5 million for design in FY 2023; $33 million for construction in FY 2025
Pima County region
Interstate 10: Ina Road to Ruthrauff Road: $109 million allocated from FY 2020 to FY 2022 to widen the freeway between Ina and Ruthrauff roads.
Interstate 10: Ruthrauff Road traffic interchange: $102 million allocated from FY 2019 to FY 2021 for this reconstruction project.
Interstate 10: Houghton Road traffic interchange: $46 million allocated from FY 2019 to FY 2021 for this construction project.
Interstate 19: Ajo Way traffic interchange: $36 million is allocated in FY 2019 for the second phase of this reconstruction project.
Maricopa County region
Many major projects continue to move forward in the Maricopa County region as part of ADOT’s five-year programming process and the recent update to the Maricopa Association of Governments’ 2040 Regional Transportation Plan. This plan includes updated project costs as part of the rebalancing process. Some of the region’s major expansion projects over the next five years are noted below. The complete list of projects can be found in the 2019-2023 Five-Year Program located at azdot.gov/fiveyearprogram.
Loop 202 South Mountain Freeway: The 22-mile freeway, which is currently under construction, will provide a long-planned direct link between the East Valley and West Valley and a much-needed alternative to Interstate 10 through downtown Phoenix. Approved by Maricopa County voters in 1985 and again in 2004 as part of a comprehensive regional transportation plan, the South Mountain Freeway will complete the Loop 202 and Loop 101 freeway system in the Valley.
Interstate 10 (Maricopa Freeway): I-17 Split to the Loop 202 Santan Freeway in Chandler: This project will widen the mainline and includes improvements at the Broadway Curve to help traffic flow more efficiently.
State Route 30 Study: Loop 303 to Loop 202 South Mountain Freeway: Phase One for construction of a proposed new freeway, once a decision is made by the Federal Highway Administration after the environmental study process is complete.
Loop 101 Pima Freeway: Interstate 17 to Pima Road/Princess Drive: Construction of a general purpose lane in each direction, along with modifying freeway ramps and frontage road connections at 10 interchanges.
Loop 101 Pima Freeway: Pima Road/Princess Drive to Shea Boulevard: Construction of a general purpose lane in each direction, widening of four overpass structures and other improvements.
Loop 101 Price Freeway: US 60 to Loop 202 Santan Freeway: Construction of a general purpose lane in each direction and other improvements.
Interstate 10: State Route 85 to Verrado Way: Construction of a general purpose lane in each direction along this 8-mile stretch, along with bridge reconstruction at the Miller Road and Watson Road traffic interchanges.
Loop 303 Study: Interstate 10 to the proposed State Route 30: Construction of a new freeway, new bridges and other improvements, once the environmental study process is complete and a final decision is made by the Federal Highway Administration.
US 93: Big Jim Wash section: This project will widen a 5-mile stretch of US 93 north of Wickenburg and is part of ADOT’s commitment to transform all of US 93 into a modern, four-lane divided highway.
Ally Bluechel joins NAI Horizon as Marketing Specialist
PHOENIX, ARIZONA – NAI Horizon, having just celebrated its 25th anniversary in the Valley in 2017, continues its growth in Arizona with the hiring of Ally Bluechel as Marketing Specialist.
Bluechel will provide support to NAI Horizon brokerage teams by developing materials for marketing proposals. She will also create and maintain marketing materials that will help reinforce brand recognition. This includes proposals, database support, and preparation of accurate, timely, and relevant documentation.
Bluechel joins NAI Horizon after two years as operations manager at Montgomery Technologies in San Francisco, a riser management company. She also served as an administrative assistant and office manager at GPS Technologies.
“Ally is a great addition to our marketing team,” said Terry Martin-Denning, Principal and CEO of NAI Horizon. “We are pleased to continue to grow our team with people who fit with our culture and goal to provide the highest level of support to our agents.”
A native of Marin County just north of San Francisco, Bluechel is a graduate of the University of Arizona. She earned a Bachelor of Arts degree in general studies with a focus on art, media and entertainment, global studies, and sociology. She minored in journalism.
Bluechel is an outdoors enthusiast who enjoys swimming and hiking.
Raytheon receives U.S. Patent No. 10,000,000
Laser radar data system is latest innovation in company’s near century-long history
WASHINGTON, DC — The U.S. government has granted the 10 millionth patent in the nation’s history to Raytheon (NYSE: RTN). The patent covers a system for obtaining real-time readings on speed and distance from the data stream created by laser radars. The system was invented by Joe Marron, Ph.D., an optical engineer at Raytheon.
Raytheon’s story of innovation stretches back to the company’s founding in 1922. Its first successful invention was a vacuum tube that made it practical to run home radio sets from a wall socket rather than big, messy batteries. The laser was invented over fifty years ago by a Raytheon engineer.
The company currently holds 13,000 active patents – nearly 4,500 of which are in the U.S. – and has more than 4,300 patent applications pending.
Those numbers tell a story, Raytheon Chairman and CEO Thomas A. Kennedy said.
“Raytheon engineers and researchers like Joe have been pushing the bounds of what’s possible for generations. It’s what we do. We innovate, we solve hard problems, and we create solutions that explore new frontiers to shape an exciting future,” said Kennedy, an electrical engineer with a Ph.D. and holder of four U.S. patents.
Raytheon, Marron applied for the patent in 2015, little realizing he would become the inventor behind U.S. Patent 10,000,000.
“It’s equivalent to a guy who buys a lottery ticket every month,” Marron said of his noteworthy new patent number. “Eventually, it hits.”
Marron was a good candidate for landing on the numerically significant patent. He has turned his ideas into more than 20 patents over the years, starting with a 1991 concept to improve upon bifocal lenses.
His invention improves the ability of laser radars, which use reflected light to measure speed and distance, to identify and track objects.
One problem with large laser sensors is that light fluctuates very quickly, creating an enormous amount of data to process. That means large laser radar arrays rely on a series of converters and processors just to create a coherent picture of what they’re seeing.
To get that information faster and with high fidelity, Marron called upon his knowledge of two familiar technologies: digital cameras and FM radio.
By redesigning a laser radar like a digital camera, he could spread that data out across many pixels, each with its own processing electronics. Then, using an approach called quadrature detection, which underlies many forms of wireless communications, those pixels would report only the bits of data the sensor would need to draw a picture; in essence, it’s a form of data compression.
“We can take terabytes of information and translate it down into something that can be digested by a computer,” he said.
The potential applications are many, he said, including autonomous cars; a laser radar that can identify objects with speed and clarity could help a car’s artificial intelligence make better decisions.
And that would be another entry in Raytheon’s history of innovation; along with Smith’s revolutionary S-tube, the company’s famous breakthroughs include Percy Spencer’s 1943 patent application for mass-producing magnetrons, which helped meet a critical supply need for radars in World War II. The following year, Spencer struck again, this time with a way to use the magnetron to cook, resulting in the first commercial microwave ovens.
Raytheon’s more recent patents cover many areas of emerging technology, such as a method for detecting malicious code in a computer system and a sensor that can detect a single, low-energy light particle, which could pave the way for quantum communications.
Texas Roadhouse, Starbucks and Iconic Restaurant Brand Sign Leases at The Block
More Retailers to be Announced Soon at Scottsdale’s Latest Shopping Destination
Scottsdale, Arizona — Starbucks, Texas Roadhouse and an additional, iconic restaurant brand have all signed leases this month to open restaurants at The Block at Pima Center, paving the way for vertical construction to begin. Further lease announcements are expected soon as additional tenants are poised to sign contracts on the remaining shop spaces and the two remaining pads in Scottsdale’s newest retail center.
Located on the northwest corner of the Loop 101 and Via de Ventura on the Salt River Pima Maricopa Indian Community, The Pima Center is one of North Scottsdale’s largest and most successful mixed-use developments. The development currently contains 1.5-million-square- feet of office, flex, medical, and light industrial space, and is expected to double in the next three years.
A freeway pad lease has been signed with the undisclosed restaurant brand. The principals at Mainspring were tight lipped about the brand’s identity, citing the terms of an NDA, but did say that this long sought after iconic brand’s first venture into Arizona will be a welcome addition to the Scottsdale scene. ” It’s an amazing testament to our site and development that they chose The Block for their first store in Arizona,” said Curtis Brown, principal with MainSpring Capital Group, who is leading the development effort. “I’m sure the Recreation Corridor developments and the 101 traffic counts had a lot to do with their selection. For all the visitors and resident transplants this restaurant will be a tourist attraction in and of itself,” said Brown.
Texas Roadhouse has also signed a lease and will occupy a 7,162-square-foot, free-standing restaurant with Loop 101 frontage. This will be the 11th Texas Roadhouse restaurant in Arizona and the first in Scottsdale. The restaurant chain, based in Clarksville, IN, offers tableside service and specializes in steaks, ribs and made-from-scratch side dishes. Plans call for Texas Roadhouse to also open in first part of 2019.
Starbucks has leased a 2,200-square-foot freeway frontage drive thru end cap at the east end of one of the multi-tenant buildings. They also plan to open in early 2019, along with several other small shop tenants that are ether already signed or in various stages of negotiations.
“We are very excited about the traction our leasing efforts have gained,” continued Brown. “Landing such well-known brands like Texas Roadhouse, Starbucks and others is really great for building our momentum as we complete phase one and open up leasing for the second phase. The real testament to the site coming of age is the signing of our ‘mystery’ restaurant brand. They could have selected any location in the western U.S. for their expansion towards this end of the country and they chose The Block. That speaks volumes,” said Brown. “We still have some smaller shop space opportunities and only two pads left, all of which can be delivered fourth quarter 2018 with early 2019 openings.”
When fully build out, The Block at Pima Center will contain upwards of 60,000-square-feet of restaurant and service retail space with 65ft monument signage opportunities along both Loop 101 and Via De Ventura to provide additional visibility for The Block’s tenants. Construction has already begun and all the offsites and retention have been completed. Mass grading will begin in a couple weeks.
The Corritore Company will be handling the leasing assignment for phase two of The Block. “We are extremely excited about what will be the best freeway infill retail development opportunity along the 101 in Scottsdale. This trade area is under-served and in desperate need of retail, restaurants and services,” says John Corritore, president of The Corritore Company. “The area’s variety of entertainment is expanding, which will make this an even more appealing destination. We intend to attract the best retailers and restaurants to this highly visible project.”
Located in the heart of the Talking Stick entertainment corridor, Pima Center is surrounded by Salt River Fields baseball stadium, the Butterfly Pavilion, TopGolf, Talking Stick Resort, and the Odysea in the Desert aquarium, as well as the future Great Wolf Lodge and upcoming Renaissance Dinner Theatre. An estimated seven million people will annually attend various entertainment venues within a mile of The Block. The area benefits from approximately 195,000 cars per day on the Loop 101 freeway. The immediate trade area also includes 20,000 employees.
CBRE Completes Sale of two Phoenix-area apartment communities totaling $8.81 Million
Phoenix, Arizona – CBRE completed the sale of two Phoenix-area apartment communities totaling $8.81 million.
Indigo Lofts, a 65-unit multifamily community located in Mesa at 715-737 E. Brown Road commanded a sale price of $7.25 million ($111,538 per unit).
Brian Smuckler, Jeff Seaman and Derek Smigiel with CBRE Phoenix Multifamily Investment Properties represented the buyer Indigo Loft Apt, LLC, of Pleasanton, California and the seller Alden E. and Carol M. Seifried Living Trust in the transaction. Alex Walton with CBRE Capital Markets Debt & Structured Finance arranged the financing on behalf of Indigo Loft Apt, LLC.
“Indigo Lofts is located in a highly desirable Mesa submarket that is benefiting from the Metro Light Rail expansion,” said CBRE’s Smuckler.
The property is comprised of all two-bedroom, townhome-style floor plans averaging 964 square feet. A majority of the units have been renovated to include stainless steel appliances, new cabinetry, faux wood/ceramic tile flooring and modern bathroom fixtures. The community includes two swimming pools, an outdoor kitchen area with barbecue, on-site laundry facility and covered parking. The property is also individually metered for electricity.
CBRE also completed the sale of Coronado, a single-story, 12-unit apartment community, located in central Phoenix’s Encanto neighborhood at 734 E. Coronado Rd. to John C. Davis, a first-time out-of-state buyer based in Oregon. Davis obtained new financing and purchased the property from Los Tres Borchachos, LLC, for $1.56 million ($130,000 per unit).
Brian Smuckler and Jeff Seaman with CBRE Phoenix Multifamily Investment Properties represented the buyer and seller in the transaction.
“This mid-century apartment community presented an investor with a strong value-add opportunity located in one of Phoenix’s oldest and most vibrant neighborhoods,” said CBRE’s Seaman.
Built in 1951, the garden-style community offers a mix of studio, one- and two-bedroom floor plans averaging 780 square feet. Community amenities include covered parking and an on-site laundry facility, while all units are individually metered for electricity.
First Time Buyer in Arizona from Hawaii Acquires Tempe City Center
PHOENIX, Arizona – Cushman & Wakefield announces the sale of Tempe City Center, a 162,640-square-foot office building located at 1400-1470 East Southern Avenue, between Rural Road and McClintock Drive in Tempe. The asset is comprised of an eleven-story office tower, three single-story office buildings, and two single-story retail buildings situated on approximately 10.75 acres.
Tempe CC Hui, LLC purchased the asset from Tempe City Center Limited Partnership for an undisclosed price. Cushman & Wakefield’s Chris Toci and Chad Littell arranged the transaction on behalf of the seller. The members of the acquisition group, who are principally from Hong Kong and Honolulu, were introduced to the asset by Brandon Holdings, Inc., the investment’s sponsor, and IX Advisors LLC, an investment advisory based in Seattle.
“This is the buyer’s first investment in Arizona, in one of the Valley’s most transformational submarkets. There are substantial plans to renovate the project to cater to today’s modern workforce”, said Chris Toci, Executive Managing Director of Cushman & Wakefield. David Austin and Malia Chui, Partners with IX Advisors, commented, “We are thrilled to enter into the Phoenix market with such a strong acquisition. Tempe City Center is the perfect complement to our clients’ investments in other U.S. cities.”
Tempe City Center is over 90 percent leased to a broad range of tenants, including the National Bank of Arizona, Fresensius Medical Care, and regional law firm Carpenter, Hazelwood, Delgado & Bolen.
Sale of 376-Unit Fairways at Cave Creek Apartment Community
Phoenix, Arizona – CBRE announced the sale of Fairways at Cave Creek, a 376-unit value-add multifamily community, located at 2140 W. Thunderbird Rd. in Phoenix. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office represented the seller in the transaction. The buyer is Los Angeles, California-based Tides Equities, a commercial real estate investment firm specializing in Class B and core plus multifamily properties located across the western U.S.
“Fairways at Cave Creek presented an attractive value-add opportunity, centrally located in North Phoenix,” said CBRE’s Pesch. “The community has a quiet setting adjacent to Cave Creek Golf Course. At the same time, residents benefit from immediate access to Interstate-17, which connects to major employment and retail destinations in the North Valley.”
Built in 1981, Fairways at Cave Creek features a desirable low-density site plan with abundant common area amenities including two swimming pools and spas, fitness center, resident clubhouse, picnic areas with barbeque grills, and an onsite laundry facility. Studio, one-, two- and three-bedroom floor plans have well-appointed kitchens, walk-in closets and private patios/balconies.
CBRE Brokers $100 Million Sale of 24th At Camelback
PHOENIX, Arizona – CBRE has arranged the $100 million sale of 24th at Camelback, a 302,209-square-foot Class A trophy office tower in metro Phoenix’s Camelback Corridor. This high-profile transaction represents the largest office sale in metro Phoenix so far in 2018, both by dollar volume and price per square foot. At the time of sale, the property was 94 percent leased to a prominent tenant roster, that includes Greenberg Traurig, AAA, RSM, Cisco Systems, USI and Regus.
Barry Gabel, Will Mast and Chris Marchildon with CBRE Capital Markets, Institutional Properties in Phoenix represented the seller, an affiliate of Houston based Hines in the transaction. Jim Fijan, with Fijan Advisors, acted as an advisor to the Seller. New York Life Real Estate Investors acquired the property. Hines, who developed the property in 2000 and has managed the asset since it was delivered, will continue to manage the property under its new ownership.
“This sale is a testament to the strength of the Phoenix market and its position as a prime office investment market,” said CBRE’s Gabel. “There is a long runway for growth here in Phoenix for investors.”
24th at Camelback features sleek, contemporary architecture and has earned a LEED Gold Certification and Energy Star label. Additional features include an eight-story detached parking structure with two levels below grade and six levels above grade, providing an overall 3.7/1,000 parking ratio.
“24th at Camelback presented a unique opportunity for investors to purchase a class A, trophy asset of significant size in one of the Valley’s most highly coveted office submarkets,” said CBRE’s Mast.
Located at the premier intersection within the Camelback Corridor, 24th at Camelback features an exceptional on-site amenity base including Scramble – a Breakfast & Lunch Joint, which just recently opened in Spring 2018. Biltmore Fashion Park, the world-renowned, luxury shopping center located across 24th Street, offers over 60 high-end restaurants and world-class retail options including Arizona’s only Saks Fifth Avenue. Other nearby amenities include the Shops at Town & Country and Camelback Colonnade (offering an additional ±100 walkable restaurant and shopping options), the iconic Arizona Biltmore Resort (featuring 740 luxury rooms and suites, 8 swimming pools, a full-service spa, fitness center and five upscale dining options), the 263-room Camby Hotel (offering luxury accommodations and award-winning dining) and a new 160-room AC Marriott (expected to be delivered in late 2018).
Hermosa Project zinc & lead mine near Patagonia would pump nearly $700M into state
Energy Metal News is reporting a planned “world-class” zinc and lead mine near Patagonia in Santa Cruz County would create several thousand jobs in the depressed area and pump $676 million annually into the state’s economy, according to an economic-impact report released Friday by the mine’s developer.
Over its projected 32-year life, the Hermosa Project mine would add more than $21 billion to the state gross domestic product, says a study by Arizona State University economists commissioned by Arizona Mining Inc.
“You’re talking about decades of injections into the economy,” Lee McPheters, an ASU economist and research professor, said at a press conference.
The mine is expected to have an average of 451 employees over a project lifespan now expected to last until 2049, with a peak of 525 workers, and those jobs will support an average of 3,225 other private, nonfarm jobs, researchers at the L. William Seidman Research Institute and the W.P. Carey School of Business at ASU found.
Though the Patagonia Mountains were mined extensively from the 1850s until the 1950s, the Hermosa Project — which has been vehemently opposed by local environmentalists but has won strong support from Gov. Doug Ducey — would be the first mine to open in Santa Cruz County in decades.
Juan Ciscomani, a senior aide to the governor, said the Hermosa Project will be an important creator of much-needed jobs and career paths for graduates of Arizona’s schools and technical programs.
“The impact of mining in Arizona really extends into every sector,” Ciscomani said.
The Hermosa Project, also known as the Hermosa-Taylor Project, would become one of the world’s biggest producers of zinc, producing some 946 million pounds per year, said Don Taylor, Arizona Mining’s chief operating officer.
“We’re certainly one of the world’s biggest base-metal mines,” said Taylor, who recently won a top award from the Canadian mining industry for his discoveries of the world-class zinc deposit at the site.
ASU’s McPheters said at projected production levels, the mine would boost mining’s current annual contribution to the state’s gross domestic product, now about $4.6 billion, by 15 percent.
The mine also is expected to produce significant amounts of lead and silver, along with manganese, and a concentration of copper also has been found in some areas, said Taylor.
An earlier plan to dig a surface silver mine partly on federal land near the site in the Patagonia Mountains was dropped after environmentalists filed suit challenging the permit issued by the U.S. Forest Service, which later revoked the permit.
The proposed underground mine would have a much smaller footprint on private land acquired by Arizona Mining and needs only state permits to begin operation, with a goal of starting production by 2020.
Opponents, including the Patagonia Area Resource Alliance, say the mine threatens both the supply and quality of the area’s groundwater.
They say even the underground mine design would divert groundwater used by the town of roughly 900 residents, citing dropping well levels in the areas, while contaminated water from mine processing could pollute Patagonia’s groundwater supply.
They cite pollution from closed mines in the area, including a 2014 incident in which contaminated water from a long-shuttered mine poured into a nearby creek during a flood.
Taylor said water the mine uses will be reused as much as possible and other water released will be first treated at an onsite plant already under construction.
Greg Lucero, vice president of community and government affairs for Arizona Mining, said the company is sinking its own deep wells and tapping an aquifer on the other side of the mountains from Patagonia, which should keep the water supplies separate.
Carolyn Shafer, a local business owner and board member of the Patagonia Area Resource Alliance, said the mining company’s economic assumptions and environmental promises should be viewed skeptically.
“It is important to look at the history of mining promises here in the state of Arizona and what many towns have been dealing when other mines have left,” said Shafer, who has lived in the Patagonia area for 20 years and owns a local artists’ gallery there.
“It is more important to have clean water and air for all the people first before we talk about a big project that will bring economic benefits to a few.”
Asked about the long-term economic viability of the proposed mine given the cyclical nature of the mining industry, Taylor said the company’s projected production costs are so low it’s hard to imagine the mine closing for economic reasons.
He noted that the company supplied ASU researchers with conservative price assumptions, including a price of $1.10 per pound of zinc, while the current price is about $1.40 per pound.
Arizona Mining expects to be able to produce zinc — used mainly for galvanizing metals and in metal alloys — at a cost of 46 cents per pound, while the lowest zinc prices have gone in the last 25 years is around 85 cents a pound, Taylor said.
“What we know is that our margin, what it costs us to make a pound of zinc and where prices have been the last few years — there’s no way you shut this project down, though you might slow it down,” he said, adding that the Hermosa mine could affect markets as it supplies 8 percent to 12 percent of the world’s zinc.
McPheters said there’s a good chance prices for zinc and the other metals mined at the Hermosa mine site will increase in coming years, citing the increase in demand for high-tech products.
“I find it very unlikely that demand for mineral resources — copper, zinc, whatever — is going to diminish because I’m not sure what the substitutes are,” he said.
Cadden Community Management donates to local YMCA
TUCSON, Arizona — Cadden Community Management donated $500.00 to the Lohse Family YMCA of Tucson. The donation was part of the Cadden “Weight Loss for a Cause” company fitness program. Cadden employees volunteered for a 12-week diet and fitness program, which resulted in a 20% body fat decrease for the group. The company donated $25.00 for each percentage lost resulting in the $500.00 donation. Lohse Family YMCA Executive Director Annemarie Medina said the donation would help with their summer children’s programs.
Cadden Community Management has enjoyed over 30 years of success in the association management industry. Today, the company is responsible for maintaining and increasing property values of homes in more than 225 communities in Tucson, Green Valley and Sierra Vista.