Litchfield Park plans to start work on huge city center development
After decades of talking about building a city center in Litchfield Park, the city is set to break ground on the 400,000-square-foot mixed-used development later this month.
The $52 million project, dubbed Litchfield Square, could include 13 buildings ranging in size from 8,000 to 120,000 square feet of office, residential or retail space and three parking garages, according to the city.
It will be built on about 30 acres owned by the city near Litchfield Road and Wigwam Boulevard in Litchfield Park, a fast-growing small suburb in the West Valley that's just south of Luke Air Force Base.
The site will be developed in five phases, include a 2.5-acre park and be home to potential restaurants, stores, professional offices or luxury condominiums.
Once complete, the site will have a total of 2,000 parking spaces between the ground and parking garages. The garages won’t be built until the entire project is about 40% built out, according to the city.
Infrastructure will cost about $26 million, while the parking garages will also cost about $26 million, according to Litchfield City
Manager Matthew Williams, who said the city expects to collect about $2 million annually in sales tax from the completed project.
'Huge project for the city'Williams said he expects to see buildings go up by the end of 2022 and the entire project to be finished in about five years. It took “a while” for the city to buy of all the properties, but the city said the project has come together in the past few years.
“It’s been a long time coming. This is a huge project for the city, to bring in new office space, residential space, retail space,” Williams said. “It’s just been lining all the pieces up.”
Litchfield Park purchased 16 acres from Dragon and Crane Corporation for $2.8 million in 2015 and another 6 acres of the site in 2017 for $2.1 million from Torino Holdings LLC, according to real estate database Vizzda.
The new center comes as another nearby city broke ground on its own civic center in April. Called Goodyear Civic Square at Estrella Falls, the city of Goodyear and Globe Corp. started construction this year on the project that will bring a new city hall, library, public park and long-awaited speculative office space to the city.
The proposed office spaces in Litchfield Park could also add to the low inventory of office space in the West Valley. In the second quarter this year, JLL said the West Valley had 13.8 million square feet of total office inventory compared to 96.3 million across the Phoenix metro.
Out of 2.1 million square feet of office under development in Phoenix metro, the West Valley had about 228,628 square feet under development in Q2, according to JLL.
Developers can bid on parcels
Williams said the city started work on rough grading and infrastructure in June. The official groundbreaking for the development will take place on Sept. 15 at 9 a.m. behind City Hall at 214 W. Wigwam Blvd.
According to the city, the $26 million in infrastructure will be paid through a $15 million bond and about $10 million in city funds. Eventually, Williams said the city will establish a Community Facilities District on the property, so people who buy or lease in Litchfield Square will pay the facilities district tax.
"That tax will pay the city back for our investment on infrastructure," he said, adding that the tax is only on properties in Litchfield Square.
The project does not currently have a developer, but the city plans to open requests for statements of qualifications in the fall for potential developers to lease or buy a parcel on the site, Williams said.
As many as nine parcels on the site may be put out for bid, Williams said, adding that there’s 12 developable acres. So far, Williams said the city has had contact with at least 10 "serious" developers and some potential businesses, but declined to name any.
Proposals will go back to Litchfield Park City Council in October. After developers are selected and their design is approved, the developer can close on the selected parcel, according to the city.
Litchfield Square will include Santa Barbara-style architecture based on existing Litchfield Park buildings like The Wigwam, Church at Litchfield Park and Litchfield Elementary School.
Destination Litchfield Park LLC, which is affiliated with Mission West LLC and Scottsdale-based Carefree Partners Investments, designed the master plan, which the city is using to design the project.
Scott Phillips, vice president of Carefree Partners, said their hope was to be the developer of the project, but said "it didn't work out that way, so the limit of our involvement was the master plan."
Carefree Partners Investments are also owners of the master-planned City Center in Surprise.
By Phoenix Business Journal
White House pushes for companies to take ransomware more seriously after high-profile cyberattacks
The White House has issued a rare open letter to companies calling on them to treat the threat of ransomware attacks with greater urgency, following back-to-back attacks by Russian hackers on key oil and food processing companies.
In a memo sent out late last week, the National Security Council's top cyber official, Anne Neuberger, writes to corporate executives and business leaders that the private sector needs to better understand its critical role.
"All organizations must recognize that no company is safe from being targeted by ransomware, regardless of size or location," Neuberger writes. "We urge you to take ransomware crime seriously and ensure your corporate cyber defense match the threat."
The letter comes after JBS Foods, the world's largest meat supplier, reported that it was hit by a cyberattack that the FBI has attributed to hackers believed to be in Russia, resulting in significant parts of its production to be shut down. The company said late Wednesday it expected to be operating near full capacity by Thursday.
A White House official said Neuberger's letter was prompted by a spike in ransomware attacks and "a very concerning shift from data theft to disrupting critical services." "The most important takeaway from the recent spate of ransomware attacks on US, Irish, German and other organizations around the world is that companies that view ransomware as a threat to their core business operations rather than a simple risk of data theft will react and recover more effectively," Neuberger said, urging companies to "immediately convene their leadership teams" to assess their risk exposure.
The letter from Neuberger, a deputy national security advisor, was also sent out to key companies that regularly engage with the Department of Homeland Security's agency in charge of safeguarding critical infrastructure, the Cybersecurity and Infrastructure Security Agency.
The White House is encouraging all companies to carry out recommendations it recently laid out in an executive order focused on cybersecurity, including updating systems and segmenting networks to isolate the operational parts of the networks. The Biden administration also said this week it has launched a review of ransomware practices that include pressuring countries, such as Russia, to not harbor ransomware attacks, and to analyze cryptocurrencies use by criminals.
The ransomware attack on the Colonial Pipeline Company last month, followed by the weekend attack on JBS USA, a major meat producer, highlight how these incidents can disrupt the companies themselves and critical industries throughout the United States.
"These are higher profile targets, which makes them more noteworthy, but we do see small businesses, medium businesses, hospitals, small banks hit every single day," said Danny Jenkins, CEO of cybersecurity firm ThreatLocker. Since 2019, threat actors have been increasingly successful at hitting larger enterprises in newsworthy attacks, according to Brett Callow at Emsisoft, putting the issue front and center for the public and the Biden administration.
The latest incident, linked to a criminal group likely based in Russia, prompted an FBI investigation and DHS-led effort to offer technical support to the company in recovering from the ransomware attack.
The FBI confirmed Thursday they are attributing the JBS cyberattack to REvil and Sodinokibi ransomware and praised the company for quickly responding to the hack.
"We continue to focus our efforts on imposing risk and consequences and holding the responsible cyber actors accountable," the FBI said in a statement. "A cyber attack on one is an attack on us all."
On Wednesday, White House press secretary Jen Psaki said the administration is working closely with the private sector.
She told reporters that the White House is "ensuring that private sector entities have a seat at the table, and we can work in close coordination."
Biden will discuss recent cyber attack on meat producer with Putin in Geneva
The JBS ransomware attack serves as a "reminder about the importance to private sector entities of hardening their cyber security and ensuring they take the necessary to prepare for this threat that we've seen rising even over the last few weeks," she said.
The White House is also engaging with the Russian government on the matter and "delivering the message that responsible states do not harbor ransomware criminals," White House deputy press secretary Karine Jean-Pierre said Tuesday.
President Joe Biden will address the increased threat of cyberattacks while meeting with Russian President Vladimir Putin later this month, Psaki said, adding that the administration is not "taking any options off the table" in response to the attack on JBS USA.
Asked whether Biden thinks Putin could stop the attacks if he wanted to, Psaki said that Biden "certainly thinks that President Putin and the Russian government certainly has a role to play."
Asked Wednesday if he planned to retaliate against Russia for a ransomware attack that the administration says originated in Russia, Biden told pool reporters: "We're looking closely at that issue."
The White House has issued a rare open letter to companies calling on them to treat the threat of ransomware attacks with greater urgency, following back-to-back attacks by Russian hackers on key oil and food processing companies.
In a memo sent out late last week, the National Security Council's top cyber official, Anne Neuberger, writes to corporate executives and business leaders that the private sector needs to better understand its critical role.
"All organizations must recognize that no company is safe from being targeted by ransomware, regardless of size or location," Neuberger writes. "We urge you to take ransomware crime seriously and ensure your corporate cyber defense match the threat."
The letter comes after JBS Foods, the world's largest meat supplier, reported that it was hit by a cyberattack that the FBI has attributed to hackers believed to be in Russia, resulting in significant parts of its production to be shut down. The company said late Wednesday it expected to be operating near full capacity by Thursday.
A White House official said Neuberger's letter was prompted by a spike in ransomware attacks and "a very concerning shift from data theft to disrupting critical services." "The most important takeaway from the recent spate of ransomware attacks on US, Irish, German and other organizations around the world is that companies that view ransomware as a threat to their core business operations rather than a simple risk of data theft will react and recover more effectively," Neuberger said, urging companies to "immediately convene their leadership teams" to assess their risk exposure.
The letter from Neuberger, a deputy national security advisor, was also sent out to key companies that regularly engage with the Department of Homeland Security's agency in charge of safeguarding critical infrastructure, the Cybersecurity and Infrastructure Security Agency.
The White House is encouraging all companies to carry out recommendations it recently laid out in an executive order focused on cybersecurity, including updating systems and segmenting networks to isolate the operational parts of the networks. The Biden administration also said this week it has launched a review of ransomware practices that include pressuring countries, such as Russia, to not harbor ransomware attacks, and to analyze cryptocurrencies use by criminals.
The ransomware attack on the Colonial Pipeline Company last month, followed by the weekend attack on JBS USA, a major meat producer, highlight how these incidents can disrupt the companies themselves and critical industries throughout the United States.
"These are higher profile targets, which makes them more noteworthy, but we do see small businesses, medium businesses, hospitals, small banks hit every single day," said Danny Jenkins, CEO of cybersecurity firm ThreatLocker. Since 2019, threat actors have been increasingly successful at hitting larger enterprises in newsworthy attacks, according to Brett Callow at Emsisoft, putting the issue front and center for the public and the Biden administration.
The latest incident, linked to a criminal group likely based in Russia, prompted an FBI investigation and DHS-led effort to offer technical support to the company in recovering from the ransomware attack.
The FBI confirmed Thursday they are attributing the JBS cyberattack to REvil and Sodinokibi ransomware and praised the company for quickly responding to the hack.
"We continue to focus our efforts on imposing risk and consequences and holding the responsible cyber actors accountable," the FBI said in a statement. "A cyber attack on one is an attack on us all."
On Wednesday, White House press secretary Jen Psaki said the administration is working closely with the private sector.
She told reporters that the White House is "ensuring that private sector entities have a seat at the table, and we can work in close coordination."
Biden will discuss recent cyber attack on meat producer with Putin in Geneva
The JBS ransomware attack serves as a "reminder about the importance to private sector entities of hardening their cyber security and ensuring they take the necessary to prepare for this threat that we've seen rising even over the last few weeks," she said.
The White House is also engaging with the Russian government on the matter and "delivering the message that responsible states do not harbor ransomware criminals," White House deputy press secretary Karine Jean-Pierre said Tuesday.
President Joe Biden will address the increased threat of cyberattacks while meeting with Russian President Vladimir Putin later this month, Psaki said, adding that the administration is not "taking any options off the table" in response to the attack on JBS USA.
Asked whether Biden thinks Putin could stop the attacks if he wanted to, Psaki said that Biden "certainly thinks that President Putin and the Russian government certainly has a role to play."
Asked Wednesday if he planned to retaliate against Russia for a ransomware attack that the administration says originated in Russia, Biden told pool reporters: "We're looking closely at that issue."
First Ever NW Valley Business Expo Event Announced for Ottawa Campus. It’s Time to Meet Face-to-Face and Celebrate!
More Details and Booth Reservations
The Surprise Regional Chamber announced today the launch of their inaugural business event called Celebrating Community: Business Expo, which will take place on Saturday, October 8 on the Ottawa campus located in the City Center of Surprise.
The event is for the communities of El Mirage, Sun City, Sun City West Surprise, Waddell and Youngtown. The event will be free for the public.
“We, like our entire business sector, have felt the impact of COVID-19 in our day-to-day businesses, so we want to do something concrete to help kick-start the business community” said Raoul Sada president and CEO of the Surprise Regional Chamber of Commerce.
“We will create a fun day out of the office where the focus is networking, learning opportunities and engaging members of the community. There has been a need for some time, for a local show and now is the right time to push ahead with our plans." Said Mary Orta, VP of Marketing and Membership for the Chamber.
Two Expo's
For years, the Surprise Regional Chamber along with five other Chambers have organized an event called the Biz-2-Biz Expo that is held in Glendale each year. While the Chamber still plans to participate in the multi-chamber event, they felt the NW Valley market has grown sufficiently large now, that we can have another more local event just for the six cities in the region.
About the Theme
Mr. Sada the name for the event and the theme of celebrating is very much in order after a year long crisis. The Celebrating Community-Business Expo reflects the Chamber’s fervently-held belief that the health of the business community and the health of the larger community in which it lives are inseparable. Building stronger communities is what our Chamber of Commerce is all about. The event is a natural for the Chamber!
About the Location
Having the Ottawa Campus with all its new facilities in our own backyard, was definitely a game changer. Having the space, educational resources and the beautiful campus will allow us the showcase not only Ottawa University, but the entire Civic Center and City Center" said Mr. Sada.
Business and Community Engagement
“We welcome all business to get behind this new initiative and take part in what will be a new and exciting marketing and networking venue. Unique sponsorship and partnership opportunities will be available, and we will make an effort to have businesses created more interactive experiences for the consumers,” said Mary Orta.
The Celebrating Community Business Expo will showcase local and regional businesses, tourism assets, restaurants, entertainment venues, educational resources, medical and health, fitness organizations and more.
For more information on the event go to https://www.surpriseregionalchamber.com/celebrating-community-expo.html
Pictured below are some of the areas that will set up with display booths of various sizes, canopies and outdoor tents. The grounds will accommodate almost 100 display areas ranging in size from 20 sq. ft. to 400 sq., ft. island displays!
More Details and Booth Reservations
The Surprise Regional Chamber announced today the launch of their inaugural business event called Celebrating Community: Business Expo, which will take place on Saturday, October 8 on the Ottawa campus located in the City Center of Surprise.
The event is for the communities of El Mirage, Sun City, Sun City West Surprise, Waddell and Youngtown. The event will be free for the public.
“We, like our entire business sector, have felt the impact of COVID-19 in our day-to-day businesses, so we want to do something concrete to help kick-start the business community” said Raoul Sada president and CEO of the Surprise Regional Chamber of Commerce.
“We will create a fun day out of the office where the focus is networking, learning opportunities and engaging members of the community. There has been a need for some time, for a local show and now is the right time to push ahead with our plans." Said Mary Orta, VP of Marketing and Membership for the Chamber.
Two Expo's
For years, the Surprise Regional Chamber along with five other Chambers have organized an event called the Biz-2-Biz Expo that is held in Glendale each year. While the Chamber still plans to participate in the multi-chamber event, they felt the NW Valley market has grown sufficiently large now, that we can have another more local event just for the six cities in the region.
About the Theme
Mr. Sada the name for the event and the theme of celebrating is very much in order after a year long crisis. The Celebrating Community-Business Expo reflects the Chamber’s fervently-held belief that the health of the business community and the health of the larger community in which it lives are inseparable. Building stronger communities is what our Chamber of Commerce is all about. The event is a natural for the Chamber!
About the Location
Having the Ottawa Campus with all its new facilities in our own backyard, was definitely a game changer. Having the space, educational resources and the beautiful campus will allow us the showcase not only Ottawa University, but the entire Civic Center and City Center" said Mr. Sada.
Business and Community Engagement
“We welcome all business to get behind this new initiative and take part in what will be a new and exciting marketing and networking venue. Unique sponsorship and partnership opportunities will be available, and we will make an effort to have businesses created more interactive experiences for the consumers,” said Mary Orta.
The Celebrating Community Business Expo will showcase local and regional businesses, tourism assets, restaurants, entertainment venues, educational resources, medical and health, fitness organizations and more.
For more information on the event go to https://www.surpriseregionalchamber.com/celebrating-community-expo.html
Pictured below are some of the areas that will set up with display booths of various sizes, canopies and outdoor tents. The grounds will accommodate almost 100 display areas ranging in size from 20 sq. ft. to 400 sq., ft. island displays!
Investor: Far West Valley purchase has brought a big payoff
Reporter, Phoenix Business Journal
When Kuldip Verma made his first investments in land, a 320-acre site at the base of the White Tank Mountains in 1995, there was nothing built in the far West Valley and none of his friends in the business wanted to partner with him.
Now, Verma’s company, Vermaland, is one of the largest private landowners in the state, and that first initial land investment has returned $20 million in profit, and much of it has been developed into a luxury custom home community.
The area gradually grew in popularity and lots began to sell, Verma said. After the economy recovered from the market crash in 2008, interest came back for the area. In 2019, the company rezoned the third phase of the area for higher density, allowing three homes per acre instead of one.
In 2020, the firm had 10 lots left and now are down to two, which they plan to hold on to, Verma said.
“This transformed into a very big project with a huge rate of return,” Verma said, adding that he had a vision to create a unique development in the area. “The views were very beautiful, it has some of the best views in the Valley, it’s right at the base of the White Tank Mountains. I thought it maybe 10 or 15 years there would be houses out there.”
Vermaland’s holdings, which are heavily concentrated in the far West Valley, total about 25,000 acres of land, and the company has been involved in major deals for residential land, as well as land for solar developments and other transactions requiring large amounts of raw land.
Verma said the far West Valley will only continue to grow for both residential and commercial uses as the population of Phoenix continues to grow.
“The way Phoenix is growing so quickly, with industries coming here and more and more people coming here, people will keep going further and further west,” Anita Verma-Lallian, Verma’s daughter and executive with Vermaland said. “There is an extreme shortage of (housing) supply, and a lot of pressure on pricing.”
Verma-Lallian, who also created her own land investment firm, Equity Land Group, said she looks for land investments “on a daily basis” in Buckeye, where land values continue to climb. Equity Land Group has purchased three parcels in Buckeye on behalf of its investors, and one in Casa Grande.
Verma said places like the far West Valley and far southeast Valley, like Pinal County, will be the only places where bigger parcels will still be available for purchase by private owners.
Reporter, Phoenix Business Journal
When Kuldip Verma made his first investments in land, a 320-acre site at the base of the White Tank Mountains in 1995, there was nothing built in the far West Valley and none of his friends in the business wanted to partner with him.
Now, Verma’s company, Vermaland, is one of the largest private landowners in the state, and that first initial land investment has returned $20 million in profit, and much of it has been developed into a luxury custom home community.
The area gradually grew in popularity and lots began to sell, Verma said. After the economy recovered from the market crash in 2008, interest came back for the area. In 2019, the company rezoned the third phase of the area for higher density, allowing three homes per acre instead of one.
In 2020, the firm had 10 lots left and now are down to two, which they plan to hold on to, Verma said.
“This transformed into a very big project with a huge rate of return,” Verma said, adding that he had a vision to create a unique development in the area. “The views were very beautiful, it has some of the best views in the Valley, it’s right at the base of the White Tank Mountains. I thought it maybe 10 or 15 years there would be houses out there.”
Vermaland’s holdings, which are heavily concentrated in the far West Valley, total about 25,000 acres of land, and the company has been involved in major deals for residential land, as well as land for solar developments and other transactions requiring large amounts of raw land.
Verma said the far West Valley will only continue to grow for both residential and commercial uses as the population of Phoenix continues to grow.
“The way Phoenix is growing so quickly, with industries coming here and more and more people coming here, people will keep going further and further west,” Anita Verma-Lallian, Verma’s daughter and executive with Vermaland said. “There is an extreme shortage of (housing) supply, and a lot of pressure on pricing.”
Verma-Lallian, who also created her own land investment firm, Equity Land Group, said she looks for land investments “on a daily basis” in Buckeye, where land values continue to climb. Equity Land Group has purchased three parcels in Buckeye on behalf of its investors, and one in Casa Grande.
Verma said places like the far West Valley and far southeast Valley, like Pinal County, will be the only places where bigger parcels will still be available for purchase by private owners.
The VOICE of the Business Community Just Got Louder, Much Louder!
The Surprise Regional Chamber of Commerce's new Legislative Action Center will super-charge its advocacy efforts. After a six-month trial period, the Legislative Action Center will be the organization's premier advocacy tool in its arsenal of influencing public officials and getting the VOICE of small businesses heard.
“In less than a minute, users will be able to express their views and support of pro-business issues by being able to contact elected officials electronically. The secret is in its simplicity and its speed, to mobilize the business community,” said Chris Herring, the Chamber's Public Policy Chair. “This year has been a big year for the local business community, said Mr. Herring, "the Chamber unveiled its local legislative agenda, endorsed candidates for the first time, and our live local candidate forums were viewed by 15,000+ residents!"
“The Legislative Action System will be used in conjunction with the Chamber’s top-rated Action Alert program to allow businesses to weigh in on issues immediately. This ability to quickly mobilize the business community will help make a lasting impact on federal, statewide, and local matters,” said Bill Vensel, the Chair of the Board for the Surprise Regional Chamber of Commerce. “Our Chamber's priorities represent and advocate for what citizens and the business community have asked for and continue to request, and that is building a healthy and vibrant community by ensuring an environment where business can prosper.”
So, do all these emails make a difference? Congressional staffers and elected officials say yes. "They do make a difference,” said State Senator Rick Gray, also an ex-officio member of the Chamber. "Hearing firsthand from business about what is important to them makes a huge difference," the Senator said. "After the Chamber sent the first Action Alert, I received over 300 emails from local business owners, and that got my attention." Senator Gray stated that “civic and political participation by the business community is so vital and allows for better decisions to be made, and this makes the Chamber's role in that process priceless.”
Raoul Sada, the president and C.E.O. of the Chamber stated that "the voice of the business community is essential to protecting our free enterprise system! As a business advocate, we need to emphasize our core principles of the free enterprise and remind elected officials that removing obstacles to job creation and economic growth is paramount. The advocacy activities are part of the mission of the Surprise Regional Chamber of Commerce, which is to champion economic prosperity, foster a pro-business climate, and to improve the quality of life in our region.” The Chambers servers the business communities of El Mirage, Sun City, Sun City West, Surprise, Waddell, and Youngtown
The VOICE of the Business Community Just Got Louder, Much Louder!
The Surprise Regional Chamber of Commerce's new Legislative Action Center will super-charge its advocacy efforts. After a six-month trial period, the Legislative Action Center will be the organization's premier advocacy tool in its arsenal of influencing public officials and getting the VOICE of small businesses heard.
“In less than a minute, users will be able to express their views and support of pro-business issues by being able to contact elected officials electronically. The secret is in its simplicity and its speed, to mobilize the business community,” said Chris Herring, the Chamber's Public Policy Chair. “This year has been a big year for the local business community, said Mr. Herring, "the Chamber unveiled its local legislative agenda, endorsed candidates for the first time, and our live local candidate forums were viewed by 15,000+ residents!"
“The Legislative Action System will be used in conjunction with the Chamber’s top-rated Action Alert program to allow businesses to weigh in on issues immediately. This ability to quickly mobilize the business community will help make a lasting impact on federal, statewide, and local matters,” said Bill Vensel, the Chair of the Board for the Surprise Regional Chamber of Commerce. “Our Chamber's priorities represent and advocate for what citizens and the business community have asked for and continue to request, and that is building a healthy and vibrant community by ensuring an environment where business can prosper.”
So, do all these emails make a difference? Congressional staffers and elected officials say yes. "They do make a difference,” said State Senator Rick Gray, also an ex-officio member of the Chamber. "Hearing firsthand from business about what is important to them makes a huge difference," the Senator said. "After the Chamber sent the first Action Alert, I received over 300 emails from local business owners, and that got my attention." Senator Gray stated that “civic and political participation by the business community is so vital and allows for better decisions to be made, and this makes the Chamber's role in that process priceless.”
Raoul Sada, the president and C.E.O. of the Chamber stated that "the voice of the business community is essential to protecting our free enterprise system! As a business advocate, we need to emphasize our core principles of the free enterprise and remind elected officials that removing obstacles to job creation and economic growth is paramount. The advocacy activities are part of the mission of the Surprise Regional Chamber of Commerce, which is to champion economic prosperity, foster a pro-business climate, and to improve the quality of life in our region.” The Chambers servers the business communities of El Mirage, Sun City, Sun City West, Surprise, Waddell, and Youngtown
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Survey: Many Arizona construction firms avoided furloughs, but have difficulty finding workers
More Arizona construction firms are reporting difficulty in finding workers according to a national study. In addition, 33% of firms said projects already in progress had been halted due to the pandemic, according to the survey by the Associated General Contractors of America (AGC.) According to the survey Arizona firms did not have to furlough or lay off employees, while only 50% of construction firms nationwide reported not having to furlough or lay off anyone. The survey included 2,005 firms from around the county with 26 reporting from Arizona. According to an article in the Phoenix Business Journal, many Arizona firms are still having trouble filling existing positions, with 72% of respondents reporting they were having a hard time filling hourly craft positions in the state, far above the national rate of 52% saying they had trouble filling those jobs. The coronavirus has also undermined the sector’s productivity levels as firms across the country change the way they operate to protect workers and the public from the disease. Forty-four percent of responding firms report that it has taken longer to complete projects and 32 percent say it has cost more to complete ongoing projects because of the coronavirus. As a result, 40 percent report they have adopted new hardware or software to alleviate labor shortages they have experienced. Click Here for Arizona Survey Results |
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Pandemic Causes Historic Economic Contraction
It was expected, but still it is shocking to see. According to the Bureau of Economic Analysis, the economy contracted by 33% in the second quarter. That is the largest quarterly contraction on record! But there is good news! The economy took a hard hit from the pandemic, but we expect the current recession will be much shorter than previous large contractions. That is the largest quarterly contraction on record. The previous quarterly record decline was -10% in the first quarter of 1958. The record-setting drop was caused by the Great Pause of the economy due to COVID-19. Further adding to the gloom today is an increase in unemployment claims. Initial claims were 1.4 million last week, which was an increase of 12,000 from the previous week. Continuing claims (initial claims minus those that are no longer claiming benefits) increased by almost 900,000 to 17 million. However, the four-week average fell by 435,000 to slightly over 17 million. That may turn around if initial claims continue to rise though. A key difference, and a silver lining, is the current recession will be much shorter than previous large contractions. The Great Depression lasted four years. The Great Recession (2007-2009) went on for two. This contraction is probably over already, after only a few months. The growth rates for the rest of 2020 will likely be robust, perhaps exceeding 20% in the third quarter. That would be the fastest quarterly growth on record, smashing the previous record of 16.7% in 1950. The recovery will have ups and downs. Today is a down day. There will be better days to come. |
Advocacy Notice: Initiative to Mandate Pay Increases for Health Care Workers
The free-enterprise system is once again under attack! A ballot measure being run by a California labor union will attempt to mandate a substantial pay raise for all Arizona healthcare workers.
The California union, is in the process of gathering 237,645 signatures before July 2, 2020, to qualify for the ballot. The initiative will require a 20-percent increase in wages, phased in over four years starting in 2021, for all “direct care workers” in Arizona hospitals. That includes nurses, technicians, aides, non-managerial administrative staff, social workers, and even food service and housekeeping staff in hospitals. From a chamber perspective, living wage proposals are economically unfair because they change the basis on which our economy operates. Instead of allowing market forces to determine pay, living wages put the interests of employees above all other considerations.
The Service Employees International Union-United Healthcare Workers West (SEIU-UHW), based in California is funding the grass roots efforts here in Arizona. Key among the initiative's main points is banning insurance companies from discriminating against Arizonans with preexisting conditions (Pre Existing conditions are currently protected by the Affordable Care Act.) The initiate also protects Arizonans against surprise medical bills (The state legislature has already passed laws dealing with surprise billing that went into effect last year). What most people do not know, is the little talked about mandate that requires all direct care hospital workers a 5% wage increase each year for four years.
From a chamber perspective, living wage proposals are economically unfair because they change the basis on which our economy operates. Instead of allowing market forces to determine pay, living wages put the interests of employees above all other considerations. Wage mandates ignore the principles of free-market economics; they prevent businesses from making profits, growing, and hiring more workers; and they base wages on what the worker wants instead of on the value of work performed. Also, the average salary for registered nurses in Arizona is $75,110, and the average hourly wage is $36.11, which ranks 15th in the United States, according to the website Nurses Salary Guide.
As business advocates, we need to emphasize our core principles of free enterprise, and remind the public and elected officials that removing obstacles to job creation and economic growth is paramount to building healthy and vibrant community.
What Can You Do
There is, however, one simple thing that residents in the NW Valley can do to push back against initiative mischief without rewriting the state Constitution. Encourage your employees, friends, neighbors and businesses associates that before signing any petition, read it carefully. Don’t rely on the word of paid signature gatherers, who are notorious for saying anything to get people to sign. Pull out your smartphone and check it out yourself on the secretary of state’s website: https://apps.arizona.vote/info/IRR/2020-general-election/18/0
Advocacy Notice: Initiative to Mandate Pay Increases for Health Care Workers
The free-enterprise system is once again under attack! A ballot measure being run by a California labor union will attempt to mandate a substantial pay raise for all Arizona healthcare workers.
The California union, is in the process of gathering 237,645 signatures before July 2, 2020, to qualify for the ballot. The initiative will require a 20-percent increase in wages, phased in over four years starting in 2021, for all “direct care workers” in Arizona hospitals. That includes nurses, technicians, aides, non-managerial administrative staff, social workers, and even food service and housekeeping staff in hospitals. From a chamber perspective, living wage proposals are economically unfair because they change the basis on which our economy operates. Instead of allowing market forces to determine pay, living wages put the interests of employees above all other considerations.
The Service Employees International Union-United Healthcare Workers West (SEIU-UHW), based in California is funding the grass roots efforts here in Arizona. Key among the initiative's main points is banning insurance companies from discriminating against Arizonans with preexisting conditions (Pre Existing conditions are currently protected by the Affordable Care Act.) The initiate also protects Arizonans against surprise medical bills (The state legislature has already passed laws dealing with surprise billing that went into effect last year). What most people do not know, is the little talked about mandate that requires all direct care hospital workers a 5% wage increase each year for four years.
From a chamber perspective, living wage proposals are economically unfair because they change the basis on which our economy operates. Instead of allowing market forces to determine pay, living wages put the interests of employees above all other considerations. Wage mandates ignore the principles of free-market economics; they prevent businesses from making profits, growing, and hiring more workers; and they base wages on what the worker wants instead of on the value of work performed. Also, the average salary for registered nurses in Arizona is $75,110, and the average hourly wage is $36.11, which ranks 15th in the United States, according to the website Nurses Salary Guide.
As business advocates, we need to emphasize our core principles of free enterprise, and remind the public and elected officials that removing obstacles to job creation and economic growth is paramount to building healthy and vibrant community.
What Can You Do
There is, however, one simple thing that residents in the NW Valley can do to push back against initiative mischief without rewriting the state Constitution. Encourage your employees, friends, neighbors and businesses associates that before signing any petition, read it carefully. Don’t rely on the word of paid signature gatherers, who are notorious for saying anything to get people to sign. Pull out your smartphone and check it out yourself on the secretary of state’s website: https://apps.arizona.vote/info/IRR/2020-general-election/18/0
2019 Legislative Report
Becoming the Voice of Business! Last year was the first year our Chamber stepped up its advocacy game by hiring a lobbyist. We monitored 84 bills and among the 25 bills that were passed, we supported 16 of those. Among the 59 bills that failed, we supported ten of those. Click here for the full Legislative Report
One of the most valuable, and often overlooked functions of our Chamber is being an advocate for the business community. The Surprise Regional Chamber works to represent the collective voice of the business community. Whether it's setting legislative goals, working with our lobbyist, sending out Action Alerts or keeping voters informed through our forums, the goal is ensuring an environment where business can prosper.
Jan. 2020
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