The Business Journal - Serving Phoenix & the Valley of the Sun articles from May 1992

The Business Journal - Serving Phoenix & the Valley of the Sun archives from May 1992

Assets, deposits grow at Arizona banks, but number of branches declines sharply. (trend toward bank consolidation in Arizona) (Industry Overview)
May 25, 1992... The trend toward consolidation among Arizona banks is pushing assets and deposits up, while loan amounts are down slightly, indicating that lending conditions remain tight in the state. In addition, the idea of a branch bank on every corner...

Bidding is intense for DHS contract. (Department of Health Services' behavioral health contracts)
May 25, 1992... Three entities that administer $65.5 million worth of behavioral health contracts each year in the Valley are waiting to see which ones may be put out of business by the state's decision to contract with a single regional authority. The...

City wants to set performance targets for area banks. (proposed requirement for banks in Phoenix, Arizona to meet lending needs of the community) (Industry Overview)
May 25, 1992... Banks that don't invest suitably in the community would risk losing their city accounts under a program being crafted by city of Phoenix officials. The Phoenix City Council has given its preliminary approval to setting up a system for...

Businesses oppose Camelback residential zoning proposal. (plan to construct apartments at 16th Street and Camelback Road in Phoenix, Arizona)
May 25, 1992... Though most Phoenix zoning cases pit neighbors against developers, Trammell Crow Residential is facing opposition from nearby businesses in its attempt to develop 236 apartment units on the vacant piece of land within The Arboleda at 16th...

Long-suffering Arizona economy recovering, with car sales, home construction leading way. (report on economic trends and indicators) (Industry Overview)
May 25, 1992... Arizona's moribund economy at long last is beginning to show signs of meaningful recovery. That's the consensus of Valley experts surveyed in the latest Business Journal/Channel 10 Economic Report Card, a monthly compilation of economic...

Charlie Stevens: sensitivity and credibility prove to be keys to success for long-time lobbyist.
May 25, 1992... A number of years ago, some representatives of the liquor industry approached Charlie Stevens about lobbying for them at the Capitol. "They were offering me more money than all my other clients combined," recalls Stevens. And, he says, he had...

Colleges big market for expanding use of magnetic ID cards. (multi-purpose magnetic identification cards for college students) (Focus on Telecommunications) (Company Profile)
May 25, 1992... Not so long ago, student ID cards were just that. Showing your ID at the dorm cafeteria would get you dinner if you had the right stamp, but if you wanted a late-night snack, forget it. Today many schools, including Arizona State University,...

Revived Fujitsu subsidiary seeks bigger share of PBX market. (Fujitsu Business Communication Systems Inc.; private branch exchange telephone market) (Focus on Telecommunications) (Company Profile)
May 25, 1992... About a year ago, Tony Carollo was brought into the Phoenix office of Fujitsu Business Communication Systems to revitalize its $130 million PBX business. Considering that the industry has been running flat since the late 1980s, it was no...

Study says no-fault malpractice insurance could be affordable.
May 25, 1992... TEMPE -- No-fault automobile insurance has long been debated, and now an Arizona State University professor and his professional colleagues say the same idea might be feasible in the medical industry. Results of a seven-year study, printed...

Arizona Business Hall of Fame inducts six members. (Eddie Basha Jr., Roy P. Drachman, Samuel F. Kitchell, Frank Cullen Brophy, Pedro W. Guerrero and William J. Murphy) (Focus on Arizona Business Hall of Fame)
May 25, 1992... The Arizona Business Hall of Fame, established by the boards of directors of Junior Achievement in Phoenix and Tucson and the Phoenix Chamber of Commerce, has named six new members. The 1992 laureates are the fourth group to be inducted. The...

SunCor to build $200 million residential community. (Suncor Development Inc.)
May 18, 1992... SunCor Development Inc. will build a 1,400-acre master-planned community northeast of Mayo Clinic-Scottsdale that could cost $200 million when completed about six years from now. Plans call for contracting with home-builders to develop 750 to...

Defense contractors hope tax breaks will help to fuel commercial business.
May 18, 1992... Arizona's defense contractors are wary, but tentatively supportive, of plans to give them tax breaks to convert to commercial operations. Representatives of a number of businesses want to see the details of a plan crafted by the Arizona...

VLSI is ready for major expansion: 300 jobs possible. (VLSI Technology Inc.)
May 18, 1992... VLSI Technology Inc. appears to be set for a major push at its Personal Computer Division in Tempe, which could mean more than 300 new jobs over the next few years. James Fiebiger, president and chief operating officer of the San Jose-based...

Law firms affected by soft economic conditions; few job openings for new graduates. (Industry Overview)
May 18, 1992... The latest crop of Arizona lawyers are getting their first lesson in economics and business: When supply exceeds demand, it isn't a good time to be a seller. While major Arizona law firms report they're going to be hiring some members of the...

Legal fees paid to private firms cut. (rates for state jobs) (Law Firms Affected by Soft Economic Conditions) (Industry Overview)
May 18, 1992... Claiming the state has been paying too much, Attorney General Grant Woods is capping the amount private law firms can charge for state business. Woods says partners at private firms now will be paid only $125 an hour on state jobs. He says...

State officials face Sept. 30 deadline to acquire buildings. (distressed properties from the Resolution Trust Corp.)
May 18, 1992... State officials are looking to spend $15 million by Sept. 30 to acquire distressed properties that can be bought "for a song" from the Resolution Trust Corp. or purchased from private owners at 40 percent of replacement cost. Among the...

Schwab's Phoenix telephone center set to open next month. (Charles Schwab and Company Inc.)
May 18, 1992... Charles Schwab & Co. Inc. will open a regional telephone communications center next month at the Opus Southwest building on 24th Street and Highland Avenue, bringing the building to 98 percent occupancy. The 145,000-square-foot call center...

Leland Clabots: head of Phoenix Children's Hospital revives plans for freestanding facility. (Profile)
May 18, 1992... The new head of Phoenix Children's Hospital has some major goals for the specialty facility, including resurrecting the dream of a free-standing hospital. "There will be a children's hospital facility," says Leland Clabots, president and...

Scottsdale targets Southern Californians as summer visitors. (advertising campaign of the Convention/Tourism Division of the Scottsdale Chamber of Commerce) (Scottsdale Update)
May 18, 1992... SCOTTSDALE -- An advertising campaign to encourage Southern Californians to forget Arizona's heat and visit Scottsdale this summer already is paying dividends. The opening salvo of the campaign in Los Angeles-area newspapers and on broadcast...

Delayed aircraft exhibit leads to trade talks with CIS delegates. (Commonwealth of Independent States) (East Valley Update)
May 18, 1992... MESA -- A dinner originally scheduled to mark the opening of a historic display of Soviet aircraft at the Champlin Fighter Museum now will be used as an opportunity for a delegation from the former Soviet Union to explore trade possibilities....

Fledgling Arizona Stock Exchange exceeds projected volume. (Focus on Financial Institutions) (Company Profile)
May 18, 1992... Only two months after the Arizona Stock Exchange turned on its computers and began operations, it is handling double the volume it had projected. The exchange, which is operated by AZX Inc., opened for trading on March 30 and now is trading...

Mergers of banking giants spur formation of community banks. (Arizona) (Focus on Financial Institutions) (Industry Overview)
May 18, 1992... Arizona banking has taken some turns in the past several years, and now, about six years after interstate banking was approved, all of the state's largest and many of its smaller banks are owned by out-of-state institutions. Some local...

Arizona Auto Show will highlight wave of new 1993 models. (Focus on Autos)
May 18, 1992... The Arizona Auto Show has grown progressively bigger in recent years, and the 1992 version has its most extensive collection of new cars ever. The show, which will run from May 21 to 25 at Phoenix Civic Plaza, will feature 12 new 1993 models,...

Profits rising for Arizona HMOs: Lincoln National lone money loser. (health maintenance organizations) (Industry Overview)
May 11, 1992... Arizona's health maintenance organizations were healthier than ever last year, with the lone money-losing HMO about to be sold. Also, a public stock offering by the majority owner of one Arizona HMO may be put on the back burner because of...

State HMO contract up for bid. (health maintenance organizations)
May 11, 1992... Nine insurance carriers, including Arizona's largest health maintenance organizations, are vying for a contract to provide health insurance to the state's 45,000 employees. CIGNA Healthplan of Arizona Inc. and Intergroup Prepaid Health...

Developers want city's assistance to rebuild malls. (real estate developers)
May 11, 1992... Developers behind the pending refurbishing of the old Thomas Mall and Colonnade properties are asking the city of Phoenix for help with off-site improvements -- and the city's response could actually make or break either project. Homart...

State considers new company structure. (new laws for limited liability companies)
May 11, 1992... If the House and Senate ever start talking again, it appears, a key economic development bill finally will become law. The House of Representatives has given its approval to the formation of "limited-liability companies" in Arizona. These...

Marsh fights to keep commerce post. (Jim Marsh, Arizona's Department of Commerce)
May 11, 1992... Jim Marsh sat on a couch this week in the first-floor hallway of the Arizona Senate. Next to him was Senate President Peter Rios, who had agreed to give Gov. Fife Symington's choice for director of the Department of Commerce 10 minutes of his...

Southwest Airlines expected to beat hiring targets in Phoenix.
May 11, 1992... Southwest Airlines officials said last fall that the Dallas-based airline would add about 600 employees in Phoenix during 1992. So far this year, Southwest already has made 476 new hires in Phoenix, and might well beat its original...

Bank merger results in some shuffling of top management. (Bank of America Arizona, Security Pacific Bank Arizona)
May 11, 1992... Now that the BankAmerica-Security Pacific merger has been approved, the executive lineup in Arizona is slowly taking shape. David Hanna, who was CEO of Bank of America Arizona before the merger, will retain his top slot. But Ronald Azzolina,...

Shea Homes mounts aggressive effort to claim bigger share of Valley market.
May 11, 1992... Having been a sleeping giant of sorts for the past several years, Shea Homes is making inroads in the metro Phoenix market and could be a contender for the No. 3 spot among the Valley's top homebuilders. Though it seems unlikely that any...

Bruce Traegde: former draftsman goes his own way and builds project management firm.
May 11, 1992... When Raytheon Co. assigned Bruce Traegde to help design a "white room" in 1967, he didn't know what it was. Employees wearing white "bunny suits" working in ultra-clean environments have become a common sight in the computer age, but back...

Chandler retirement center to reopen under new management. (East Valley Update)
May 11, 1992... A new retirement community will open in Chandler this summer, replacing a facility that filed for bankruptcy in 1987. The community, which is undergoing a $250,000 renovation, will include a 64-bed skilled licensed facility called Park...

Ultrasound gains popularity among doctors, but turf war fades. (Focus on Health)
May 11, 1992... Although more and more baby doctors are installing ultrasound diagnostic equipment in their offices, taking some of the imaging business away from radiologists, turf battles seem to have subsided. "They do represent some competition, cutting...

Medical-care savings account is latest reform plan suggested in Washington. (Focus on Health)
May 11, 1992... With reform at the top of the health community's agenda, more and more players are trying to control medical spending. Congress already is considering several health care reform proposals, and yet another one is making its debut on Capitol...

Marriott moving slowly on plans for retirement communities. (Focus on Health)
May 11, 1992... Marriott Corp., which has been in the hospitality business for more than 60 years, is holding back the reins on plans to build 150 retirement communities nationwide. "What we've done is looked at what ideally we wanted and what reality was,"...

Time of the essence for Colonnade project, developer says. (shopping center development project)
May 11, 1992... Westcor Partners and Homart Community Centers Inc. are asking the city of Phoenix to consider entering into a cost-reimbursement type of development agreement to help facilitate the redevelopment of the Colonnade shopping center at 18th Street...

Thomas Mall facing hurdles. (shopping mall)
May 11, 1992... The pending redevelopment of Thomas Mall, a project that appears to have no opposition and great neighborhood support, still faces several obstacles before it will become a reality. Gosnell Builders, which has owned the deteriorating mall for...

Debate intensifies over compensation of corporate officials: Arizona CEOs say packages are fair, but pressure rises. (stockholders complain of chief executive officers' high salaries)
May 4, 1992... "Pay for performance," cries Emil Rossi, a Pinnacle West Capital Corp. stockholder. Frank Martin, a Dial Corp stockholder, is even more blunt in his angry assessment of Dial CEO John Teets' 1991 salary: "Two million dollars! Nobody's worth...

Top management often protected by golden parachutes. (Debate intensifies over compensation of corporate officials)
May 4, 1992... Buyouts and layoffs have been in the headlines all too often during the past few years. And mounting job loss is one reason people have taken exception to skyrocketing executive salaries. But bosses often are protected even when they get the...

VNB aims to meet Banc One's goals. (Banc One Corp.'s plans for recently-acquired Valley National Bank of Arizona)
May 4, 1992... Valley National Bank's new parent, Banc One Corp. of Columbus, Ohio, has some high expectations for its newest acquisition -- mainly, to increase its return on assets fourfold in the next few years. Although this will be no simple task for...

Alaska Air delays decision on project. (Alaska Air Group Inc.'s decision for the location of its new maintenance facility)
May 4, 1992... Five suitors hoping to win Alaska Air Group's proposed maintenance facility are being forced to cool their heels until the firm chooses a victor. The group originally planned to choose from among the competing offers by the end of March, but...

Plastics firms will expand to Valley. (Sun Valley, Arizona) (Industry Overview)
May 4, 1992... Intentional or not, Phoenix seems to be turning into a hot spot for plastics manufacturers: At least two different firms will be announcing expansion plans in the Valley in the next several weeks. Boston-based Carlisle Plastics Inc., a $350...

Zila Inc. entering toothpaste market, negotiating with ADA. (American Dental Association)
May 4, 1992... Phoenix-based Zila Inc., which markets medications that treat oral lesions and skin irritations, is introducing a new product into the $1.5 billion U.S. toothpaste market. Although not familiar with Zila's specific product, officials from...

Attorney general to create new set of advertising guidelines. (Grant Woods)
May 4, 1992... The way Grant Woods reads the state's Consumer Fraud Act, Arizona residents aren't very sophisticated. With that in mind, the state attorney general is crafting guidelines to determine when consumers are being misled. And while those...

Michael Seltzer: engineering background serves as key to success for head of Humana HMO. (Humana Health Care Plans executive director)
May 4, 1992... As a high-school student in New Jersey, Michael Seltzer figured he had two career options: pharmacy or engineering. He chose engineering, but ended up in the health care field. "I never really applied my engineering, but it got me where I am...

Arizona residents have 'theme park' of scenery here at home. (tourism promotion in Arizona) (Focus on Tourism)
May 4, 1992... Tourist groups are working particularly hard this year to encourage Arizonans to get out and see their state. The Arizona Office of Tourism has done summer in-state promotions in the past; but this year, with travel down, the blitz is on....

Valley hotel industry is disappointed with first-quarter occupancy figures. (Sun Valley, Arizona) (Focus on Tourism) (Industry Overview)
May 4, 1992... Many Valley hotels survived 1991 when the tourism and meeting industry was down dramatically nationwide, and now they are just holding on for business to pick up. Unfortunately, judging from first-quarter reports and analyst projections, it...

Superstition Springs buy was difficult transaction. (real estate transactions in Sun Valley, Arizona) (Focus on Dozen Done Deals)
May 4, 1992... Clearly the most high-profile of all acquisitions during 1991 was the purchase of the 1,200 remaining acres of the Superstition Springs master-planned community by a partnership including DMB and Laurel Haven Development Corp. for $19.6...

Recession stymies downtown Mesa redevelopment project.
May 4, 1992... MESA -- "Hope" is about the best prognosis a Mesa city official can give for the revival of a slumbering downtown redevelopment project. "Long shot" is the phrase used by the unhappy would-be developer. As has been the case with many recent...

Scottsdale ready to launch development project along canal. (shopping area along Arizona Canal)
May 4, 1992... SCOTTSDALE -- After seven years of dreams, the first small piece of a multimillion-dollar entertainment, shopping and recreational project on the barren banks of the Arizona Canal in downtown Scottsdale is about to burst into reality. The...