The Business Journal - Serving Phoenix & the Valley of the Sun articles from December 1998

The Business Journal - Serving Phoenix & the Valley of the Sun archives from December 1998

CIGNA cuts payments to doctors.(CIGNA Healthcare of Arizona Inc.)
December 4, 1998... CIGNA HealthCare of Arizona, the state's most profitable health plan, is cutting the paychecks of nearly 2,000 Valley doctors. And the doctors are not happy. A handful of them are so disgusted they are canceling their contracts with CIGNA....

Bank, MicroAge veteran joins financial upstart.(John Lewis appointed president of Sun Community Bancorp Ltd.)
December 4, 1998... One of the Valley's best-known business leaders, John Lewis, is joining an up-and-coming Arizona banking company. The MicroAge, First Interstate Bank veteran has been named president of Sun Community Bancorp Ltd. "This is an...

Tech rivals' merger combines strengths.(SpeedFam International Inc.; Integrated Process Equipment Corp.)
December 4, 1998... Neatly organized rows of paper covered the desk Richard Faubert normally uses as he and Ralph Hartung sat across; the room at a table littered with jumbles of paper two coffee cups and an opened can of Diet Coke. "You caught us right in...

AirEvac helicopter firm on expansion flight plan.(Air Evac Services Inc.)
December 4, 1998... Now that Petroleum Helicopters Inc. has purchased Samaritan Health System's air-ambulance business, it is abuzz with expansion plans for the Arizona market. The Louisiana-based publicly traded company paid $10.5 million for Samaritan Air...

Computer reseller seeks $3 million to fuel growth.(CPU MicroMart Inc.)
December 4, 1998... You can call them bold, you can call them bullish, but looking at their impressive growth over the past year, you can't call them bottom-feeders. CPU MicroMart Inc., a Scottsdale computer reseller that got its start in 1995 by purchasing...

Trax Software fights battles against former employees.
December 4, 1998... Trax Software and Consulting Inc., a Valley newcomer that quickly became one of Arizona's fastest-growing high-tech companies, is embroiled in a series of employee lawsuits and has lost its development director. The company is suing the...

Mayo Clinic to operate liver, kidney transplant program.(Mayo Clinic Scottsdale)
December 4, 1998... Mayo Clinic Scottsdale has been granted full approval from the United Network of Organ Sharing to operate liver and kidney transplant programs. The first transplants are expected to be performed this spring at Mayo Clinic Hospital in...

Who needs cash?(Integrated Information Systems Inc.)(Company Profile)
December 4, 1998... Computer firm finds customers key ingredient Jim Garvey is out to dispel the myth that you need money to make money. He didn't need it to cut lawns as a teenager. He didn't need it to sell golf balls back to unlucky players whose shots...

'Home-grown' staffing firm picks up the pace in Kansas.(Technology Trends)(Grafton Inc.)(Company Profile)
December 4, 1998... Richard Carroll knew he could make money by supplying technology experts to companies desperately needing help. Carroll, chief executive of Overland Park, Kan.-based Grafton Inc., expanded his staffing company three years ago to include...

Valley company taking laundry stores to Atlanta.(SpinCycle Inc. to open more Atlanta outlets)
December 4, 1998... Atlanta is the next expansion city for an Arizona company that aims to take coin-operated laundries out of the mom-and-pop business category and into the big time. SpinCycle Inc. has 130 stores in 25 cities and has opened five in the...

Venture pool now $20M deeper.(venture capital environment in Arizona)
December 11, 1998... The Valley's venture capital environment just grew by more than $20 million. Scottsdale venture capitalist John Holliman has raised $20 million for Valley Ventures II, LP. The fund is expected to increase to $35 million and will invest in...

All steamed up.(Arizona Supreme Court's postponement of electric deregulation)
December 11, 1998... Court pulls plug on power deregulation Electricity users, welcome back to square one. After months of negotiations, public hearings and intense political back-bending, the Arizona Supreme Court's decision to postpone the onset of Arizona's...

Health care relief coming for employers.(health insurance services offered by CIGNA HealthCare of Arizona and The Principal Financial Group for small businesses in Arizona)
December 11, 1998... Health insurance relief may be on the way for small businesses in Arizona. As insurers nationwide are raising premiums, a unique program that targets small businesses soon will offer an alternative. Under it, small businesses will be...

Overdue overhaul slated for Town & Country mall.(redevelopment of the Town and Country Shopping Center in the Valley of the Sun, Arizona)
December 11, 1998... The new owners of Town & Country Shopping Center, one of the Valley's oldest centers in one of the Southwest's hottest commercial corridors, have redevelopment plans that some say are overdue. Town & County, at the Southeast corner of...

SkyMall makes e-commerce entry with Family.com.(includes related article on shares bought by Lyle Kyle, a member of SkyMall's board of directors)(contract of SkyMall Inc. with Family.com)
December 11, 1998... As holiday spending gets under way, SkyMall Inc. is ready to open the doors for shoppers who want to do their buying online. The Phoenix in-flight catalog company inked a deal this week with niche web site Family.com, and expects to soon...

No mulligans needed.(profile of K. Sue Redman, a partner in PriceWaterhouseCoopers LLP)
December 11, 1998... Valley professional makes family, clients her No. 1 concern A partner at one of the world's largest accounting firms, an avid golfer and a parent of two kids. Not a surprising profile for a Valley business leader. But make her a woman...

Finding niche in leased employees.(employee leasing services of Diversified Human Resources)
December 11, 1998... Entrepreneur says 'service' is his firm's widget Brian Lesk was a passionate entrepreneur. He had owned restaurants and a travel company, had dabbled in the stock market and had invested in many projects. But nothing grabbed his...

Building on a record year.(record performance of the real estate and construction industries of Arizona)
December 11, 1998... Many economists remain wary as market peaks In the metro Phoenix real estate market, whether it's residential, retail or commercial, 1998 likely will become a year for the record books. Some analysts say that's good. But others are...

Main Street shops to return at Kierland Commons.(Phoenix, Arizona)
December 11, 1998... Once upon a time, and as late as the 1950s, Main Street was America's happy shopping grounds. Then came neighborhood and strip malls and, still later, regional malls and power centers. Today, developers say shoppers are looking for...

Desert Mountain moves into final stage with rare reviews.(real estate development of Desert Mountain Properties in Scottsdale, Arizona)
December 11, 1998... Desert Mountain is near the top of the Valley's real estate food chain. Opened 12 years ago with a Jack Nicklaus-designed golf course, the 8,000-acre Desert Mountain community in north Scottsdale is about to start a final development...

Homes & Son builds name among Valley historical sites.(construction services of Homes and Son in Arizona)
December 11, 1998... No matter where you drive in the Valley, chances are you will see some of the handiwork of Homes & Son, one of the state's oldest construction companies. One of its trophy projects is St. Francis Xavier Church on Central Avenue in Phoenix....

Coyotes pay $2.5M if they move.(Phoenix Coyotes)
December 18, 1998... Editor's note: The following article was provided by Street & Smith's SportsBusiness Journal, a sister paper. If the Phoenix Coyotes move from America West Arena to a proposed new venue in Scottsdale, the NHL team would have to pay $2.5...

Deep impact: Arizona not alone in quest to manage urban sprawl.
December 18, 1998... As Arizona's Growing Smarter Commission launches its fight against the problems that come with urban sprawl, it can take solace in one fact: it's not alone in the battle. Across the country, in states as urbanized as Maryland and New...

Valley real estate mogul woos NFL.(Sam Grossman)
December 18, 1998... If his success with metro Phoenix shopping centers is any clue, Sam Grossman would score a lot of business touchdowns as the new owner of the Washington Redskins. "Judging by his track record, I think he would do extremely well," said...

Phoenix smart-card firm grows behind the scenes.(Touch Technology International)(Company Profile)
December 18, 1998... Touch Technology International is getting keen about the smart-card industry with several prominent licensing deals and a $10 million to $20 million expansion in the works. TTI is looking for venture capital to fund development on its...

Styling Technology shapes up acquisitions.(Company Profile)
December 18, 1998... Salon products company will add 40 jobs as it moves to Scottsdale After a two-year, $126 million spending spree, executives at beauty business Styling Technology Corp. say it's time for a make over. The salon products company - which...

Motorola, AlliedSignal get pressure from EPA.(deadlock on the cost of building a $12 million groundwater treatment plant)
December 18, 1998... Two of the Valley's largest technology manufacturers are deadlocked on how to divide the cost of a $12 million groundwater treatment plant the companies have been ordered to build. The Environmental Protection Agency has ordered Motorola...

Black chamber gets a determined leader.(Denise Meredith, president of Phoenix Black Chamber of Commerce)
December 18, 1998... Most of Denise Meridith's memories of her childhood in New York are good. But not all. Meridith remembers going to junior high and high schools that were being desegregated, where she received a less-than-friendly reception. She...

Staying on guard.(Anderson Security Agency Ltd.)
December 18, 1998... Family keeps business and home separate Running a Security officer agency isn't a laid-back kind of job for Kimberly Anderson Maggi. The chairwoman, president and chief executive of Anderson Security Agency Ltd. in Phoenix takes her...

An imaginative solution can prevent bankruptcy.(TrineCom)
December 18, 1998... When a loss of $16 million in sales takes your small business completely by surprise, you have to think quickly to avoid becoming the next bankruptcy filing. At TrineCom, a computer company based in San Rafael, Calif., the Band-Aid...

Robots right prescription for pharmacy.(Robot-Rx, a pill-dispensing robot developed by McKesson Automated Healthcare)
December 18, 1998... Yuma Regional Medical Center's newest employee is efficient, never needs a lunch break and has quite a personality. Meet Robot-Rx - a tireless pill-dispensing robot. Developed by McKesson Automated Healthcare, a business of the McKesson...

Health insurance can be emotional issue.
December 18, 1998... Health insurance is a major emotional choice for employees and employers. After all, anything that affects quality of life, or life itself, is a significant concern. Many prospective employees will ask what is covered by the company's health...

Venture capital impact on state: $800M.(Arizona)
December 25, 1998... Super Bowl, Schmooper Bowl. Venture capital activity last year had the economic impact of nearly $800 million - 2.5 times the amount of money generated by the Valley's hosting the Super Bowl in 1996. That's one preliminary finding of a...

Warning signs: commercial market leaves bankers cautious.(Phoenix, Arizona)
December 25, 1998... Many Valley bankers are starting to worry that explosive growth may be putting the commercial real estate market into a precarious position. Market analysts have warned of potential overbuilding in Phoenix and other fast-growing cities such...

Medicare cuts hitting hard at hospitals.(Phoenix, Arizona)
December 25, 1998... More than half of the nursing homes in Valley hospitals are expected to close next year because Medicare is slashing its payments to nursing homes. The new federal payment system designed to cut medical costs won't pay the nursing homes...

Tempe company gets key ally in fight against paper clutter.(ImageTag Inc. convinces Xerox Corp. to sell its software along with digital copiers)
December 25, 1998... You won't find a bigger fan of digital imaging than Steve Irons, but the president of Tempe startup ImageTag Inc. isn't kidding himself about the demise of paper. In fact, he's banking on the proliferation of office clutter for a new...

MicroMart seeks funding as sales via Internet rise.(CPU MicroMart Inc.)
December 25, 1998... Two homegrown entrepreneurs, Jeffrey Rossas and Stephen Herman, are taking CPU MicroMart Inc. on an e-commerce adventure. The Scottsdale company is trying to raise $6 million in a private placement expected to be completed at the end of...

Samaritan, Lutheran link in latest health alliance.(Samaritan Health System; Lutheran Health Systems)
December 25, 1998... One of three brides may have found a groom. The next question is will the two others find theirs in 1999? Three Valley health systems are seeking partners, topped by last week's announcement that Fargo, N.D.-based Lutheran Health...

Developer, pilots snap up lots at Stellar Airpark Estates.(Jeffrey Mark, co-founder of Mark-Taylor Development Inc.)
December 25, 1998... Valley developer Jeffrey Mark, a flying enthusiast and co-founder of Mark Taylor Development Inc., not only is taking sales reservations for lots at Stellar Airpark Estates, but is building his own home in the Chandler subdivision. Since...

Harris Trust chief keeps roots in Valley.(Peter Ladigo, president and CEO of Harris Trust Bank of Arizona)
December 25, 1998... Being a member of the Valley's "old boys" club, doesn't mean your Rolodex can't accommodate a wide circle of friends. Peter Ladigo is active in organizations normally associated with the Valley's elite: the Phoenix Thunderbirds, which...

Going espresso.(chain of espresso coffee shops owned by Seattle Espresso)
December 25, 1998... Important coffee shop ingredient: making it special "I can't start my day without one of their triple espressos." If the statement uttered by one of Seattle Espresso's longtime customers rings a belt, you probably know how popular...

Venture capital impact on state: $800M.(Arizona)
December 25, 1998... Super Bowl, Schmooper Bowl. Venture capital activity last year had the economic impact of nearly $800 million - 2.5 times the amount of money generated by the Valley's hosting the Super Bowl in 1996. That's one preliminary finding of a...

Warning signs: commercial market leaves bankers cautious.(Phoenix, Arizona)
December 25, 1998... Many Valley bankers are starting to worry that explosive growth may be putting the commercial real estate market into a precarious position. Market analysts have warned of potential overbuilding in Phoenix and other fast-growing cities such...

Medicare cuts hitting hard at hospitals.(Phoenix, Arizona)
December 25, 1998... More than half of the nursing homes in Valley hospitals are expected to close next year because Medicare is slashing its payments to nursing homes. The new federal payment system designed to cut medical costs won't pay the nursing homes...

Tempe company gets key ally in fight against paper clutter.(ImageTag Inc. convinces Xerox Corp. to sell its software along with digital copiers)
December 25, 1998... You won't find a bigger fan of digital imaging than Steve Irons, but the president of Tempe startup ImageTag Inc. isn't kidding himself about the demise of paper. In fact, he's banking on the proliferation of office clutter for a new...

MicroMart seeks funding as sales via Internet rise.(CPU MicroMart Inc.)
December 25, 1998... Two homegrown entrepreneurs, Jeffrey Rossas and Stephen Herman, are taking CPU MicroMart Inc. on an e-commerce adventure. The Scottsdale company is trying to raise $6 million in a private placement expected to be completed at the end of...

Samaritan, Lutheran link in latest health alliance.(Samaritan Health System; Lutheran Health Systems)
December 25, 1998... One of three brides may have found a groom. The next question is will the two others find theirs in 1999? Three Valley health systems are seeking partners, topped by last week's announcement that Fargo, N.D.-based Lutheran Health...

Developer, pilots snap up lots at Stellar Airpark Estates.(Jeffrey Mark, co-founder of Mark-Taylor Development Inc.)
December 25, 1998... Valley developer Jeffrey Mark, a flying enthusiast and co-founder of Mark Taylor Development Inc., not only is taking sales reservations for lots at Stellar Airpark Estates, but is building his own home in the Chandler subdivision. Since...

Harris Trust chief keeps roots in Valley.(Peter Ladigo, president and CEO of Harris Trust Bank of Arizona)
December 25, 1998... Being a member of the Valley's "old boys" club, doesn't mean your Rolodex can't accommodate a wide circle of friends. Peter Ladigo is active in organizations normally associated with the Valley's elite: the Phoenix Thunderbirds, which...

Going espresso.(chain of espresso coffee shops owned by Seattle Espresso)
December 25, 1998... Important coffee shop ingredient: making it special "I can't start my day without one of their triple espressos." If the statement uttered by one of Seattle Espresso's longtime customers rings a belt, you probably know how popular...