20101011-NEWS--1-NAT-CCI-CL_-- 10/8/2010 3:46 PM Page 1

Vol. 31, No. 40 $1.50/OCTOBER 11 - 17, 2010

RAYS OF HOPE IN THE FLATS Business owners, city leaders see better future in district as recreation picks up

By JAY MILLER and STAN BULLARD [email protected], [email protected]

et ready for the new Flats. It won’t be the same, alcohol-fueled party central as the old Flats, pronounced Gdead years ago. At least that’s what Andy Halko is thinking. Mr. Halko, president of Insivia Marketing & Interactive Web Design, is moving his 14-person firm from Superior Avenue on the eastern edge of downtown to 2020 Center St. in the middle of the Flats. “We’re excited about having access See FLATS Page 20

Andy Halko moved Insivia Marketing & Inter- Downtown officials see buildings such as the The Rowing Club will move to Colum- active Web Design to the middle of the Flats. old B&O Passenger Terminal as assets. bus Peninsula from Scranton Peninsula.

INSIDE Analyzing privatized Survey: Lack of faith in NE economy persisting economic development By DAN SHINGLER Ohio businesses in INSIDE: Responses economy was “well into generally were more downbeat. A Republican [email protected] August and September, to Deloitte survey recovery,” while a few whopping 81.2% said they were gubernatorial it found a bit of bifur- questions. Page 22 more, 10.5%, said the either “not particularly confident” candidate John businesses agree cation when it asked, nation was entering a or “not at all confident” in it, while Kasich’s plan on many things — that the federal “Where do you believe the U.S. is in double-dip recession. only 18.8% said they were “very” or for a nonprofit government should reduce its bor- terms of current economic cycle?” In other words, 43.6% of those “somewhat confident.” to take over rowing and spending, for one — but One-third of the respondents surveyed were pessimistic, while So who’s right? the state’s eco- they can’t seem to agree on whether said the U.S. still was in a recession, 45.9% were optimistic — a nearly nomic develop- the economy is improving. while 42.1% said the nation’s even split with the remainder “It depends on the company ment efforts isn’t a sure winner, in When the Deloitte accounting economy was in the beginning of undecided. and the industry they’re in,” said the view of experts. Page 3 firm did a survey of 133 Northeast a recovery. A few, 3.8%, said the On the local economy, they See SURVEY Page 22

SPECIAL SECTION 40 6 SMALL BUSINESS

NEWSPAPER Area auto dealers adjust to tough sales by

71486 01032 offering used cars, other products ■ Page 11

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2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 COMING NEXT WEEK MONEY MAKES THE WORLD GO ’ROUND The way to an employee’s heart is with an attractive salary. That’s one finding Honoring the region’s of a MetLife survey of 1,503 benefits decision-makers and 1,305 full-time top CFOs employees. Here’s the percentage of employers and employees reporting salary and benefits as important contributors to employee loyalty: 700 W. St. Clair Ave., Suite 310, Crain’s for the third year identifies Cleveland, OH 44113-1230 Employers’ Employees’ Phone: (216) 522-1383 and profiles chief financial officers in perception perception Fax: (216) 694-4264 Northeast Ohio who have helped www.crainscleveland.com steer their companies through a Salary 67% 82% Publisher/editorial director: Brian D. Tucker ([email protected]) difficult economic period. Health benefits 59 74 Editor: Mark Dodosh ([email protected]) Company culture 55 47 Managing editor: Scott Suttell ([email protected]) Advancement opportunities 45 55 REGULAR FEATURES Sections editor: Retirement benefits 43 67 Amy Ann Stoessel ([email protected]) Classified ...... 21 List: Largest accounting Assistant editors: Other benefits Joel Hammond ([email protected]) 39 65 Editorial ...... 8 firms...... 16, 18 (dental, disability, vision) Sports Kathy Carr ([email protected]) From the Publisher ...... 8 List: Northeast Ohio’s top Work/life programs 36 53 Marketing and food Going Places...... 15 SBA lenders ...... 19 Senior reporter: Stan Bullard ([email protected]) Letters...... 8 Reporters’ Notebook ....23 SOURCE: METLIFE; WWW.METLIFE.COM Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Michelle Park ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events Coordinator: Jessica Snyder ([email protected]) Advertising sales director: Mike Malley ([email protected]) Account executives: Adam Mandell ([email protected]) Dirk Kruger ([email protected]) Nicole Mastrangelo ([email protected]) Dawn Donegan ([email protected]) Business development manager & classified advertising: Genny Donley ([email protected]) Office coordinator: Toni Coleman ([email protected]) Production manager: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Kristen Wilson ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Circulation manager: Erin Miller ([email protected]) Customer service manager: Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) 1-877-824-9373

Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Kathy Henry: Corporate circulation/audience development director G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation De- partment, Crain’s Cleveland Business, 1155 Gratiot Av- enue, , Michigan 48207-2912. 1-877-824-9373 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136

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OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 NASA Glenn upbeat on replacement bill

ment. A few members of the delega- Committee. not voted on, or the initial plan that Agency, some congressional delegates at odds tion even circulated letters saying Those supporters all say the new the Obama administration pro- the bill would be bad for NASA plan’s emphasis on research and posed in February. over impact of post-Constellation legislation Glenn; so did the technology development plays into Still, the new plan looks good, Partnership. NASA Glenn’s specialties. said Sheila Bailey, a senior execu- By CHUCK SODER exploration plans. Center director Ramon Lugo, “This congressional direction is tive vice president with the Lewis [email protected] About half of Ohio’s congressional however, stated in a letter to Crain’s good news for Glenn and Ohio,” Engineers and Scientists Associa- delegation opposed the NASA that passage of Senate Bill 3729 will Mr. Lugo said. tion, which is the local chapter of The new NASA may not be so bad Authorization Act of 2010, a bill prove good for NASA Glenn. (The the International Federation of Pro- for NASA expected to replace the Bush-era letter is on Page 8.) The union that A stellar plan? fessional and Technical Engineers. after all. Constellation program with a space represents NASA Glenn’s engineers Granted, the Senate bill that is A big reason the NASA Glenn The center’s director and others exploration plan that pays private and scientists agrees, and so do awaiting President Obama’s signa- union supported the Senate bill is with close ties to NASA Glenn have companies to develop rockets for the only two members of Ohio’s ture doesn’t provide as much research that it prevents NASA from laying voiced support for a federal bill NASA and puts more emphasis on congressional delegation who sit on and technology money as the off government employees for three expected to reshape NASA’s space long-term technology develop- the House Science and Technology House version of the bill, which was See NASA Page 19

INSIGHT THE WEEK IN QUOTES “There is always some attraction here. No matter who you are, the water attracts you, even if it is eating in a restaurant and watching (ore) boats go by.” — Jack Ecke, owner of Ecke’s Towing Service in the Flats and a service station on Columbus Road. Page One

“I’m less concerned about a double-dip recession today. … From everything I see and everyone I’m talking to, there’s a MATT SULLIVAN/REUTERS sort of quiet confi- Republican gubernatorial candidate John Kasich speaks to supporters during an Aug. 4 campaign stop in Zanesville. dence going into 2011 that’s been missing By JAY MILLER academics suggest the success of the past couple of [email protected] state business growth programs is more a reflection of each years.” A POLITICAL look at the experiences state’s appeal to site selectors — Matthew Figgie, chairman, of other states indicates rather than a function of the Clark Reliance Corp. Page One a plan advanced by John organizational structure of the Kasich to replace the business attraction effort. BATTLEFIELD OhioA Department of Develop- Jeff Finkle, president of the ment with a private, nonprofit International Economic Devel- “I’m very excited. … organization might not be the opment Council in Washington, Gubernatorial candidate Kasich touts plan economic development elixir D.C., said he hasn’t found any I’m also scared to touted by the Republican candi- evidence that private, nonprofit death.” to privatize economic development, but date for governor. agencies do a better job than — Nick Mayer, principal of Nick Conversations with economic public ones. Mayer Lincoln-Mercury Inc. in experts say it’s no panacea for state’s woes development professionals and See KASICH Page 6 Westlake. Page 11

“Bed-bug infestations can run into the Manufacturers butt heads over wind energy proposal thousands of dollars. It can spiral quickly. By DAN SHINGLER points. [email protected] Some say transition will raise costs, affect business The group suggests members tell I know that not every- legislators that wind energy creates A new bipartisan proposal to get costs. yet to be unveiled, but the two said U.S. manufacturing jobs and that body is prepared for the to generate and U.S. Sen. Jeff Bingaman (D-N.M.) they hope to see 15% of the nation’s without action on a renewable energy them. It’s just amazing. use more renewable energy is pitting and his Republican colleague Sam electricity come from renewable standard, “the United States will Ohio manufacturing interests against Brownback of Kansas said on Sept. sources by 2021. cede its status as the global leader in It just seemed to have each other. 22 that they intend to introduce The bill is backed by the Great clean energy to China, and the jobs gotten here faster Those already mining the gold of legislation that would establish a Lakes Wind Network, which works that the RES would create will go to the nation’s rush to wind energy national renewable energy stan- to increase the domestic content of China, not the United States.” than anticipated. tend to favor the push to renewables, dard. It would require the nation to North America’s wind turbines. The Thumbs up … — Rick Novickis, supervisor, while some advocates for manufac- derive more of its electricity from network has asked members to call environmental health services, turing generally say it’s a bad idea renewable sources, such as wind their federal legislators in support of Several companies in Northeast Cuyahoga County Board of that would raise the nation’s energy and solar energy. A detailed bill had the bill and even has provided talking See WIND Page 21 Health. Page 11 20101011-NEWS--4-NAT-CCI-CL_-- 10/8/2010 4:20 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 Parma straps maker heads east After mulling benefits of nearby areas for move, “(Winston Breeden is) always looking for new Winston Products opts for Glenwillow Village items to come up with for their business.” By STAN BULLARD multitenant office-warehouse building [email protected] and plans to move its office and – Mark Cegelka, mayor, warehouse operation to Diamond Glenwillow Village Breaking the rule that East Side Center One from the Venture One companies go east and West Side Building in Parma. The company square feet in Parma and 15,000 companies go west in search of larger looked for replacement sites in square feet in a satellite warehouse buildings, Winston Products LLC in Parma and as far southeast as in Cleveland that it plans to consoli- Parma has agreed to go east — all Streetsboro, he said. date in a single location when it the way to the massive Diamond “This fit us better and the deal moves in December. Center One warehouse in Glenwillow was right, to be honest,” Mr. Winston Diamond Center One also will Village. said, though he declined to disclose have room for Winston to grow, Mr. Winston Breeden, president of the rent the concern will pay. Breeden said, which it plans to do Winston Products, said the 38- “It’s a new building and has a tax with more products he declined to employee company has leased abatement in place,” he added. describe. more than 100,000 square feet at the Winston Products occupies 50,000 Winston Products dubs its best- known product “Smart Straps.” The product is a boxed rigging system that allows users to quickly release and recoil straps as they tie down or unload equipment from trucks or cars. Major retailers sell the system and associated straps, which are among 200 products the company distributes, Mr. Breeden said. Contract manufacturers produce the parts. “Our mission is to provide truly innovative product solutions,” Mr. Breeden said of the 5-year-old concern. He declined to disclose annual sales. Mark Cegelka, mayor of Glenwillow Village, said he’s looking forward to Winston Products moving to the village. He toured its Parma opera- tion and described Mr. Breeden as “an interesting entrepreneur.” “He’s always looking for new items to come up with for their business, from their Smart Straps to bungee cords and related items with all sorts of uses,” Mayor Cegelka said. Winston Products plans to ask the village to seek state job tax credits, but it has not yet done so, the mayor said. The Diamond Center One property already has an abatement of 75% of its annual property tax bill in place, which was approved before the building was constructed. The mayor said he suggested Winston Products work with Parma for a loca- tion, but was assured it was unable to find one there. Winston Products will become the third tenant in the 400,000-square- foot building that a joint venture of Geis Cos. of Streetsboro and Weston Inc. of Solon completed in 2007. The building is at 30339 Diamond Park- way. Terry Coyne, a senior vice presi- dent at Grubb & Ellis Co.’s Cleveland office who represents the building, said 133,000 square feet remains available following the Winston lease. Mr. Breeden said Brian Conroy and Scott Pick of Jones Lang LaSalle’s Cleveland office represented Winston Products in its search. Even with Winston Products’ move, Geis retains the company as a tenant because it also owns the Parma property that is Winston’s current home. ■

Volume 31, Number 40 Crain’s Cleveland Busi- ness (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing of- fices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

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OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Cleveland corrections facility a plus for neighborhood

By TIMOTHY MAGAW Ms. Connell-Freund said would be despite several calls to do so from [email protected] spent at local businesses. other state officials. Mr. Randle said he wasn’t forced A $10.8 million, 200-bed commu- Who’s in charge? out of his role in Illinois and took the nity-based corrections facility for non- Oriana House tapped Michael job in Cleveland to be closer to his violent offenders is slated to open Randle, a controversial figure from family. He added that he didn’t get in January southeast of downtown the Illinois prisons system, to lead involved with the criminal justice Cleveland, and officials associated the operations at the new facility. system to get rich. with the project say it could be a posi- He’s doing it for more than a 50% cut “It was totally my decision,” Mr. tive for the local business community. in pay from the more than $150,000 Randle said about his departure. The 53,000-square-foot facility, at a year he earned as director of the “The (Illinois) governor was sur- 3540 Croton Ave. near the Interstate Illinois Department of Corrections. prised I decided to leave.” 77 bridge, will offer low-level felony Mr. Randle, who spent nearly Speaking of Mr. Randle, Charles offenders drug treatment, counseling RENDERING PROVIDED two decades working for the Ohio See, community outreach coordinator and employment assistance. It’s the Department of Rehabilitation and for the facility governing board, said first such facility in Cuyahoga County, the bulk of the money to finance the who typically are drug or alcohol Correction before heading to Illinois Illinois “stole him from us” and Ohio and officials involved with the project facility, while the county added addicts — employed soon after leaving in June 2009, became a central figure recently “stole him back.” say it will create about 70 good-paying, in a bungled Illinois early release about $486,000. The financing was the facility. To accomplish that goal, Moving forward full-time jobs and 20 part-time jobs in place in the early 1990s, but the she said it’s important to build rela- program that put several violent and could yield other benefits. project didn’t take hold until about tionships with local employers. offenders back on the streets starting Mr. Sanchez said construction of Michael May, executive director two years ago. The main sticking “Employers tend to like our clients in September 2009 after serving little the facility should be completed in of Maingate Business Development point was site selection, said Alfonso because we get them to work on time jail time. A state-issued report in December. The facility is slated to Corp., a nonprofit group aimed at Sanchez, chair of the community- and drug screen them,” Ms. Connell- August ultimately said the program open in early January, on time and improving the industrial area where based correction facility governing Freund said, adding manufacturing was “ill-conceived” and ignored the on budget. “It couldn’t have been the facility is located, said his group board, a group that will oversee the jobs typically are a good fit for them. impact on public safety. done any faster or anymore eco- and the 500 businesses it represents facility. In addition, government officials The issue became a serious liability nomically,” Mr. Sanchez said. have been supportive of the project. Mr. Sanchez noted that it was hope the facility will help address the for Illinois’ sitting governor, Pat Mr. See said this facility is an Mr. May said Cuyahoga County and hard to explain to residents or busi- problem of state prison overcrowding, Quinn, and nearly cost him the example of the “change in paradigm” Oriana House Inc., the nonprofit ness owners that this wasn’t a jail, which they say costs taxpayers far Democratic Party’s nomination in of corrections as more states are pegged to operate the facility, have adding that it is “by no means a more money than sending offenders the February primary. Mr. Quinn looking to maximize resources and taken an area that’s typically been country club.” to a community-based facility. Also, suspended the program at the end move to low-cost, more effective ignored and put a good face on it. The facility will be geared toward the new Cleveland facility will of last year and blamed Mr. Randle types of incarceration. “With this brand-new, beautifully helping criminals re-enter the com- receive about $6 million from the for the problems, but the governor “You’re saving money,” he said. designed facility, the jobs, the secu- munity. These offenders, on average, state each year for operations, which repeatedly refused to fire Mr. Randle “It’s as simple as that.” ■ rity envelope and everything else, it stay in these types of facilities about turns that area into a very major 120 days. State law prevents them plus,” Mr. May said. from staying longer than 180 days. What it is Anne Connell-Freund, executive vice president of operations at The Ohio Department of Rehabil- Oriana House, said an ultimate goal itation and Correction contributed is getting recovering offenders —

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010

the state employee pay scale and could receive incentive bonuses for Kasich: JobsOhio staff would be paid well successful efforts. The state development depart- continued from PAGE 3 reclaim the business attraction and fund a private organization, it ain’t sector, so the private funding model ment employs more than 400 people “Here’s the bottom line: I can’t retention role. private.” Mr. Jakeway now is presi- didn’t seem sustainable,” she said. and has a budget of more than $1.1 prove, nobody can prove, that a “No one is setting a vision for the dent and CEO of the Brooks Devel- “So we dropped it at that point.” billion for fiscal 2011, though only a quasi-public/private partnership state’s role or articulating it for opment Authority in San Antonio, Nonetheless, Ned Hill, dean of portion of that budget pays for busi- will produce more jobs than a business and cities and regions Texas. the Maxine Goodman Levin College ness attraction and retention pro- public agency,” said Mr. Finkle, desperate to create new jobs,” the of Urban Affairs at Cleveland State grams. A significant part is federal whose group consists of 4,500 commission said in its report to the Strickland discarded idea University and a consultant on pass-through money, such as the economic development professionals governor and legislature. “No one Mr. Kasich maintains that moving economic development issues $137 million that goes to a home worldwide. knows what programs are working. business development to a non- nationwide, does see some advan- energy assistance program, or money Geraldine Gambale, editor of No one is building or following a profit organization — which tages to a nonprofit approach to that flows from state bonds Area Development, a publication strategy to guide and align these he would call JobsOhio — would business assistance. approved by voters, such as the that serves site selection and facili- programs.” create a faster-to-respond, more In particular, he said a private Third Frontier technology develop- ties planning professionals, con- Mr. Finkle and others say even business-friendly agency. agency’s ability to offer higher ment program. curred with Mr. Finkle. states that have privatized economic The Kasich plan follows similar salaries to its staff can attract and Under the Kasich plan, the devel- “You can’t just say the state-run, development continue to rely programs created in the last decade retain the most skilled economic opment department would be dis- or the ones that aren’t state-run, do entirely or in large measure on in states that include California, development professionals. He said mantled and those operations that a better job because it’s a mix,” Ms. public money. Florida, Indiana, Michigan and he has watched the churn in the aren’t related to business attraction Gambale said. “Enterprise Florida “You’re really not getting rid of Missouri. However, the experiences Ohio Department of Development and retention would be moved into has been successful at it, but in public involvement,” Mr. Finkle of those states suggest a private as quality mid- and upper-level offi- other departments. California they privatized it and said. “There’s still a government agency likely would not be any more cials depart for the private sector, Gov. Ted Strickland has opposed now it’s back with the state.” function going on around this effective at creating jobs than the where salaries are significantly higher. the plan, calling it a case of “the fox California dismantled its Tech- (economic development) game.” current state agency, said Ohio de- Still, he gives the current state guarding the hen house.” Mr. Finkle nology, Trade and Commerce Agency Even Enterprise Florida, one of velopment department director agency high marks for effectiveness. of the International Economic in 2003 and turned economic devel- the most lauded private agencies, Lisa Patt-McDaniel. “They do a very good job,” he said. Development Council went so far as opment marketing over to a non- got $19.3 million of its $20.6 million Ms. Patt-McDaniel said the Strick- Mr. Hill and Judy McKinney Cherry, to say that putting business people profit, TeamCalifornia. However, budget for 2008 from government land administration a little over a former director of the Delaware in charge of doling out public money last April, Gov. Arnold Schwarzenegger grants, according to its 2008 income year ago explored best practices in Economic Development Office, said or tax credits to businesses creates created the Governor’s Office of tax filing. other states and examined whether privatizing a state’s economic devel- conflicts of interest. Economic Development to bring Don Jakeway, a former director to adopt the privatization model. opment department doesn’t eliminate Democratic Attorney General economic development back in of the Ohio Department of Devel- “What we found out when we the need for expanding businesses to Richard Cordray also has come out house. opment and former president and looked at efforts in some other deal with state bureaucrats. They against the plan, saying it lacks public A government reform task force, CEO of the private Michigan states was that the public-private still must plow through state agen- accountability and transparency. the Little Hoover Commission, had Economic Development Corp., said, partnerships they had, in the end, cies for permits and other approvals. Mr. Kasich opened the door to the recommended the state of California “If you’re using taxpayers’ dollars to were mostly funded by the public reservations expressed by Mr. Cor- Sounds like a plan dray and others when he said priva- JobsOhio would be run by a 12- tization would allow the nonprofit to member board of directors appointed attract the best people by offering by the governor and composed of high salaries and bonuses, then CEOs and former CEOs. They would added, “The whole bonus thing, we hire a professional staff that, Mr. will not require them to disclose Kasich said, could be paid more than their bonuses.” ■

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OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Software maker restructures staff

are going to give us what I bought the firm in January. Hard Times call for MRI eliminates see as a world-class client The company employed support organization,” he nearly 200 people in High- remote positions, said. land Hills at the start of the Hard Choices. The company’s web site year. plans to hire more at last week listed 20 positions MRI Software needed to that MRI Software is looking add employees to handle Carey Roofing will solve Highland Hills HQ to fill at its Highland Hills administrative functions headquarters. Post previously provided by Intuit, your roof leak problem in a By CHUCK SODER Mr. Post noted, however, the company that makes [email protected] that not all of those positions are TurboTax and Quicken accounting cost efficient manner. open because of the restructuring. software. The company also is hiring David Post would rather his He said some individual postings also software developers, account exec- employees work from headquarters may represent more than one job utives and even a few recruiters. 216•881•1999 than from home. opening. MRI Software expects to continue www.careyroofing.com MRI Software LLC late last month Mr. Post would not say how many hiring, Mr. Post said, adding that laid off an undisclosed number of employees MRI Software has today, customer demand appears to be CAREY founded in 1946 Roofing Corp. MEMBER: National Roofing Contractors Association employees across the country who but he noted that the company improving with the economy. worked from home. Now the High- employs more people today than it “It feels like things are going in land Hills company is hiring their did when Vista Equity Partners the right direction,” he said. ■ replacements at its headquarters and its office in Secaucus, N.J. The company, which makes software that investors and large companies use to manage their real estate holdings, was called Intuit Real Estate Solutions until January, when Vista Equity Partners of San Francisco bought the firm from Intuit Inc. of Delivering results. Mountain View, Calif. Bringing more of its employees into its offices should help MRI Soft- ware improve employee oversight, Raising over $12 billion in equity capital markets transactions. shift people from one function to another and increase the transfer of knowledge among employees, said August 2010 August 2010 May 2010 March 2010 Mr. Post, whom Vista Equity Part- ners hired to serve as CEO of the company. He said the only MRI Software employees who will continue working from home are those who need to be close to customers. $372.6 Million $79 Million $317.4 Million $91.7 Million The restructuring is part of the Common Stock Common Stock Common Stock Common Stock company’s new three-part plan to Follow-On Offering Follow-On Offering Follow-On Offering Follow-On Offering improve customer support, Mr. Post said. In addition to bringing more employees into its offices, the company Joint Bookrunner Joint Bookrunner Left Bookrunner Left Bookrunner also is about to upgrade the portal clients use when seeking support services, and it is revamping its February 2010 February 2010 February 2010 January 2010 employee training program. “Those are the three things that

ON THE WEB Story from www.CrainsCleveland.com. $182.3 Million $269.1 Million $54.1 Million $84.5 Million Common Stock Common Stock Common Stock Common Stock Man pleads Initial Public Offering Initial Public Offering Follow-On Offering Follow-On Offering guilty in church embezzlement Co-Manager Co-Manager Left Bookrunner Sole Bookrunner We know that successful, long-term business relationships depend upon delivering results for our clients. Raising over A federal magistrate $12 billion in equity capital markets transactions through September speaks to that unwavering objective. judge last week accepted a guilty plea from Stanley At KeyBanc Capital Markets,® more than 500 professionals leverage extensive industry knowledge, equity and debt capital S. Chapman, formerly of Aurora, markets expertise, and a leading merger and acquisition advisory practice to deliver strategic solutions that help our clients on two counts of embezzling capitalize on opportunities. money from the Blessed Hope Missionary Baptist Church of Today, the markets are volatile, but at KeyBanc Capital Markets our dedication to delivering results for clients remains constant. Cleveland and on two counts of failing to pay income taxes. For information on how KeyBanc Capital Markets can help you reach your business objectives, In April, federal prosecutors call Randy Paine, Co-Head of KeyBanc Capital Markets, at 216-689-4119, charged Mr. Chapman with four Doug Preiser, Co-Head of KeyBanc Capital Markets, at 216-689-5944 or counts of income tax evasion and 12 counts of employment David L. Gruber, Managing Director, Equity Capital Markets, at 216-689-0444. tax offenses. The government alleged that between 2003 and 2006, Mr. Chapman embezzled $336,777 from the church by diverting federal FICA tax money to his own account. The indictment alleged that Mr. Chapman failed to report taxable income of approximately $283,136 and income taxes of approximately $51,301 for KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. those years. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A Sentencing has been set for ©2010 KeyCorp ADL2004 Dec. 15. — Jay Miller 20101011-NEWS--8-NAT-CCI-CL_-- 10/8/2010 2:51 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION It’s time, Ted ed Strickland is a good man, but not a good governor. When put to the test, he dragged his feet in dealing with the big deficit Ohio faced when putting together its two-year Tbudget in the spring and summer of 2009. Now, with an $8 billion hole staring the state in the face in its next biennial budget, Ohio can’t afford a governor who is hesitant to lead. We are not in love with Gov. Strickland’s Republican challenger, John Kasich. However, we believe Mr. FROM THE PUBLISHER Kasich is the better choice in this year’s election for governor, in part because he is unlikely to show the same reluctance to taking on a budget challenge that the incumbent displayed last year. Next governor at major disadvantage The campaigns of these two men haven’t been impressive, nor have they been particularly forth- ’ve asked it before: Who will be the be left for the next General Assembly and That’s why I find it hard to understand right. It has been unfair of the Kasich campaign, for winner of next month’s gubernato- governor to “concur that a promise has why Eric Fingerhut, chancellor of higher rial election — the loser? even been made” if that payment is education, is blocking Kent State Univer- example, to lay at Gov. Strickland’s feet the loss of A quizzical question, I admit. But shoved into the next biennial budget. sity’s plan to sell bonds in a once-in-a- 400,000 jobs statewide over the last few years. The Ithe biennial budget that Ohio’s next So the higher ed institutions would generation attempt to make badly needed length and depth of the recession created a tidal governor and General Assembly will receive only 11 monthly payments, with repairs and renovations — as well as wave of job losses that no occupant of the governor’s confront is shaping up to be a bloodbath, the last one wedged into the next budget. build a new home for its acclaimed mansion could have stopped. and so far I haven’t read or heard Maybe. “It’s a cut,” state Sen. John architecture school. If done now, the However, it’s equally insincere for Gov. Strickland anything concrete from either candidate Carey, R-Wellston, chair of the Senate university estimates it can save $57 million to proclaim that he managed to balance the budget about how they plan to staunch Finance Committee, told The because of low-interest bond rates and without a tax increase despite the worst economic the wounds. BRIAN Dispatch. “There is no other one-time federal assistance. crisis since the Great Depression. The main reason At a time when higher educa- TUCKER way to put it.” The chancellor, whom I’ve long the state made ends meet was because of billions of tion is more important than In this political season, the respected, doesn’t want the university ever for Ohioans, the Strickland last thing a Strickland adminis- (at which I recently served as trustee) to dollars of one-time federal stimulus money from administration apparently is tration that pledged to help levy student fees to pay off the bonds, the Obama administration. trying to delay $127 million in higher education wants to do is and is rightly concerned that others Even with that money, Gov. Strickland was left payments to state-supported, cut funding to these institutions might follow suit. But it appears there with a $900 million budget gap that he tried to fill higher education institutions so vital to our economic future. are no better options — given the rare with phantom revenue from the state’s expected until the 2012 biennium. Wait Let’s face it. Any governor circumstances presented at this point in share of the take from video slot machines that did — we can’t find the money this unlucky enough to have his or time. Also, after the fees are fully phased not exist at Ohio’s seven horse race tracks. It was a budget year, so we’re going to her job in this Great Recession in, Kent State likely still will be among flawed gambit, as the governor’s attempt to authorize hope we can make it up in 2012? has faced a horrible set of circumstances the more affordable universities while the video slots as an extension of the Ohio Lottery Bruce Johnson is a former lieutenant that has little — perhaps nothing — to do also enhancing its place as a regional governor who’s now president of the with party affiliation. Thousands of job economic engine. was sure to face a court challenge, which it did. Inter-University Council that represents losses have slashed income tax receipts The free market, rather than a limping Three months into the budget year, he gave up on the state’s 14 publicly supported four-year in a state that’s becoming steadily older state government, would then determine slots and was forced to raise revenue by postponing colleges and universities. He told The and poorer, like the rest of the industri- the university’s place in Ohio’s future, as the last of five annual tax cuts that were scheduled Columbus Dispatch last week that it would alized world. it should. ■ during the administration of former Gov. Bob Taft. We would prefer not to see a replay of this thrashing about next year when addressing what will be an LETTERS incredibly tough budget to balance, given that a big pot of stimulus money won’t be available next time around. Based on his performance last year, Gov. NASA’s new plan offers Glenn opportunity Strickland does not instill in us the confidence that he is up to the task. ■ The NASA Authorization Act of 2010 is The bill also supports the president’s in space and develop technologies relevant Mr. Kasich only has described in broad brush good news for the space community and proposal for reinvigorating NASA’s space to long-term human exploration. strokes how he’d tackle the looming deficit — stuff for NASA Glenn Research Center. In fact, the technology mission. The program will Back in April, the president said in a such as putting every program and agency under Glenn Research Center is uniquely suited likely include significant new opportunities speech at the Kennedy Space Center in the microscope and not using one-time funds for to take advantage of many of NASA’s new for Glenn in areas of technology develop- Florida that he wanted NASA to develop programs, and I applaud Congress for ment such as advanced in-space propul- a crew vehicle that would build on recurring expenses. His lack of detail is disappointing. supporting this ambitious path forward. sion and development of new engines Orion’s features. The authorizers agreed, However, the former congressman brings with First, the fact that NASA now has an that more efficiently use cryogenic fuels, and Glenn will likely have a role in that him the experience of serving as chairman of the approved road map is definitely good news. electric propulsion or nuclear energy; work, as it has previously on Orion. House Budget Committee. The hope is that his The uncertainties of recent months have advanced systems for energy generation, These are just a few of the areas where knowledge would make Mr. Kasich better suited tested the resolve of those in the aerospace storage and distribution; and new tech- the future of exploration is likely to touch the than the current governor to devise a budget game industry. The Glenn work force, however, niques for in-situ resource utilization. Cleveland area, with long-term benefits plan for Ohio. has never ceased to focus on the job at hand Glenn has already been a pioneer in in jobs and a strong local pride that we We’re obsessed with the budget because how it’s and has safely and effectively continued many of these areas, and NASA won’t be will be contributing to national goals. balanced will influence state support for education, to implement our nation’s space program. recreating the wheel here, but looking to This congressional direction is good health care, transportation and almost any other The president asked, and the autho- build on existing expertise. news for NASA Glenn and Ohio. rizers approved, $19 billion for NASA for The extension of the International aspect of life in Ohio. We’d rather see John Kasich in fiscal year 2011. While the appropriators Space Station to at least 2020 is also good Ramon “Ray” Lugo charge of that assignment than Ted Strickland. It’s will provide the specifics, this increase is news for Glenn. This will expand our Director that simple. a strong vote of confidence in these focus on the station as a national lab to NASA Glenn Research Center tough economic times. help us learn more about human health See LETTERS Page 9 20101011-NEWS--9-NAT-CCI-CL_-- 10/7/2010 3:14 PM Page 1

OCTOBER 11-17, 2010 CRAIN’S CLEVELAND BUSINESS 9

THE BIG ISSUE Nationally, the personal savings rate is going up. Are you saving more? Why or why not? In business, the right banker makes all SANDRA RICTOR STEVEN RODGERS ELISE MCKNIGHT CAMILL UNDERWOOD North Ridgeville Brook Park Berea Cleveland Yes, we have a savings I’m saving more. I have to I’m not. It’s just a time to No, I’m not. Everything is the difference account with a credit retire sometime, and I stabilize what you have. expensive. You can’t save union. … We’re using it to don’t want to live on credit I’m a single parent with money anywhere. … You pay bills and pay for vaca- cards. four kids … Personal know that when milk goes tions. savings is not in the up to $3. picture yet. Meet Our Difference Makers:

➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com. David DeMichael Senior Vice President Push on to trim chronic care spending Commercial Banking 25 years in banking Providers would finance programs with help from insurers, companies 440.953.3614

By TIMOTHY MAGAW specific insurance provider. managed appropriately with more [email protected] Medical Mutual of Ohio, patient engagement as well as some UnitedHealthcare, Care- other measures to coordinate their A nonprofit coalition of Source and Kaiser Perma- care, that would reduce those costs,” health care professionals is nente have signed on to the said Diane Solov, program manager working with local insurers initiative, and project leaders for Better Health Greater Cleveland. Mark McCaffrey and companies to get them say they’ve also gotten sig- Tom Campanella, a longtime Senior Vice President to pay medical providers a nals of support from Med- health care observer and executive Commercial Banking few extra bucks per patient Cebul icaid and the Ohio Coverage director of the health care MBA to help finance programs that and Quality Council. program at Baldwin-Wallace College, 14 years in banking ultimately would help keep people They’re still in talks with Buckeye said similar initiatives throughout 216.694.5667 with chronic diseases out of hospitals. Community Health Plan, Anthem the country are focused on elevating The goal, the project leaders say, and Aetna, which have yet to come primary care toward a “much more is to chip away at the $4 billion spent on board. dominant role in health care.” on hospital visits by patients with Aetna spokesman Scot Roskelley “If they focus on prevention, play chronic diseases such as diabetes, said in an e-mailed statement that a lead role in wellness, have a team hypertension and heart failure. Most Aetna has signed on to similar approach with staff and a lot of of these emergency hospital visits, projects elsewhere in the country education, hopefully we’ll be in a Robert Dawson they say, could be avoided if people and is awaiting results from those position where people don’t get sick Senior Vice President properly cared for their conditions. before signing on to others. in the first place,” Mr. Campanella said. Commercial Banking “That’s a non-trivial amount of “Until we have further data from Meanwhile, Better Health Greater money. That money could be used these pilot projects, we are limiting Cleveland is involved with other 24 years in banking for a variety of services,” said Dr. our involvement in these types of initiatives aimed at boosting the 440.953.2242 Randall Cebul, the director of Better projects,” Mr. Roskelley wrote. overall health of the region. The group, Health Greater Cleveland, the group These types of projects focus on for instance, is focused on using data spearheading the initiative. reinvigorating primary care while from electronic medical records to Thus far, about half the major simultaneously controlling costs. drive improvements in care delivery insurance groups and companies Some of the measures that could be and clinical outcomes. contacted by Better Health Greater implemented with the extra money It also coordinates a regionwide Cleveland have signed on to the would offer more coordinated care learning collaborative, which Dr. initiative. Dr. Cebul noted that it’s and patient follow-ups. They also Cebul said offers health care profes- FirstMerit is proud to welcome these important to get all of them on could include hiring additional staff sionals the opportunity “rub elbows” board because all patients are going such as nurse practitioners. and share the best practices for three experienced bankers to our to benefit — not just the ones from a “The idea is that if they were delivering care. ■ Commercial Banking team.

LETTERS We take the “people” part of “businesspeople”

continued from PAGE 8 through our programs and, most community stakeholders have now very seriously. Adding this trio will continue Big environmental impact importantly, in our curriculum. been exposed to South Euclid’s to distance FirstMerit from our competition. Receiving this honor from Crain’s efforts to embrace a sustainable ■ Thank you, Crain’s, for a memo- is a significant and prestigious honor economy. rable evening for Ruffing Montes- for us. Housing manager Sally Martin sori School at your Emerald Awards and housing programs coordinator Recognition Event. The party was Gordon L. Maas Tracie Zamiska have worked tirelessly exceptionally welcoming and a Head of school to make the Green Neighborhoods wonderful opportunity to meet Ruffing Montessori School Initiative a reality and being named others working for sustainability. Of a finalist for the Emerald Awards course, the evening’s highlight was South Euclid goes green serves to validate all their hard work. the receipt of the Emerald Award in I would also like to thank the ■ our category. I am writing to express my deep Natural History Museum and your Ruffing is a small school, but we appreciation for the selection of the fellow sponsors for a wonderful work to have a large impact. We are city of South Euclid as a finalist for reception. It was great to meet all the firmly committed to our mission of the Crain’s 2010 Emerald Awards. other finalists and truly see first- firstmerit.com being a safe and smart school for I know it is very rare for a munic- hand how the Northeast Ohio the future. Families who aspire to ipality to even apply, let alone region is transitioning to a 21st-cen- these values are keenly interested in be selected as a finalist, and for that tury economy. being part of our school community. I would like to thank you. This A key part of our mission is to work selection as a finalist also serves to Georgine Welo to spread the word about the publicize our Green Neighborhoods Mayor importance of sustainable living, Initiative. A countless number of South Euclid 20101011-NEWS--10-NAT-CCI-CL_-- 10/8/2010 3:55 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 Crisis communication more a focus at area PR firms Citizens Bank pretty episodic. Something bad east Ohio’s largest public relations Falls joins those responding to market demand happens, such as mass layoffs at a firm, has noticed an uptick in its reinstates manufacturing plant. The message crisis communications work, and By KATHY AMES CARR sure longer-term counseling and crisis then is communicated and mitigated, finds itself working more compre- [email protected] prevention practices are in place. and then it’s time to move on. hensively on certain clients’ longer- NE Ohio post To tackle the potential increase in The business and reputation term strategies. Falls Communications today, business, Mr. Falls since last spring management group will function “Financial services is a big area, By MICHELLE PARK Oct. 11, officially launches a new has been putting together a team more like a long-term retainer for as well as hospital systems’ because [email protected] division of its business that aims of four communications veterans companies who need to repair and of health care reform, and manufac- to shape long-term strategies for with various strengths that include reshape their image after a crisis hits. turing,” said Matt Barkett, managing Nearly a year after it did away with clients that have endured crises finance and public affairs. The new group will aim to make director of the crisis communica- the job of regional president for ranging from employee layoffs to The team already has been working sure that client has certain policies tions practice. Northeast Ohio, Citizens Bank of bankruptcy filings. over the summer with at least a in place to determine the cause of Kathleen Obert, managing director Flint, Mich., has created the position The Cleveland public relations half-dozen of the firm’s 35 or so the problem and identify whether of Columbus-based Fahlgren Inc., of Ohio district president in the hope firm created the business and repu- clients — particularly in the legal any organizational and structural says reputation management work of boosting its business in the region. tation management group in response and financial industries — on enter- changes need to be made to prevent within the Cleveland office of Jamie Lynch, who most recently to some clients’ growing concerns prise business strategies and expects something bad from reoccurring. Fahlgren Mortine Public Relations, oversaw health care lending for all of about how various negative issues that part of the business to grow as The individuals whose roles will formerly Edward Howard, contin- Citizens Bank, started the new job affect their organization’s image the public relations firm reaches out help round out the extension of Mr. ues to increase as corporate entities Sept. 7. He reports to the president and their bottom line. to existing and new clients through- Falls’ crisis communications depart- undergo further scrutiny from both the of the bank’s Southeast Michigan “We’re responding to the market- out Ohio. ment are: Kevin Donahue, managing government and media that include and Ohio region. place,” said Robert Falls, president The new division also is helping director; Ronald Fountain, execu- bloggers and citizen journalists. The district president position was and CEO. “We’re trying to be more the firm reach projected 2010 tive counsel; Elizabeth Krouse, vice The phones also are “ringing off created because Citizens Bank offi- proactive with clients to ensure revenue growth of 12% to 15% from president; and John Znidarsic, the hook” for Cleveland-based Hennes cials view Cleveland as a place where their sustainability.” 2009, Mr. Falls said. senior account executive. Paynter Communications — whose the bank can grow, said Clinton Other local public relations firms “Our intention is to have more than “We believe we’ve made a signif- sole focus is crisis communications Sampson, executive vice president of that specialize in crisis communica- a Midwest presence,” he said. “I an- icant, well-thought-out investment — while the three-person staff has Citizens Bank, which is part of Citi- tions, say they, too, are hearing ticipate this business to grow rapidly.” that has already paid off,” Mr. Falls said. had to turn away business, said zens Republic Bancorp Inc. more from clients wanting to make Typically, crisis management is Meanwhile, Dix & Eaton, North- partner Barbara Paynter. ■ “We needed to give greater focus to the Cleveland market, and we needed a strong leader in that market,” said Mr. Sampson, former Northeast Ohio president for the former Bank One. “There are great businesses there. There are great consumers there. We’ve got 14 branches; it’s time to raise the bar on performance.” Citizens Bank entered the Cleve- land market when it bought Republic Bank in 2006. Mr. Sampson said Northeast Ohio was too small to be considered a region at Citizens Bank, so it eliminated its regional presi- dent position in October 2009 and consolidated its Ohio operations with those in Southeast Michigan. However, the Northeast Ohio region is not too small to be a district led by a district president, Mr. Sampson said in explaining the new, “very similar” position. Bank executives are happy with the district’s performance, but believe growth is possible, particularly because industrial and commercial businesses such as those in North- east Ohio are “really our sweet spot,” Mr. Sampson said. However, no new branches are planned in the Ohio district, which is “profitable and doing well,” Mr. Lynch said. Mr. Lynch has worked for Citizens Bank since 2007, when he became senior vice president and commercial banking manager for the Ohio region. His role later changed to commercial banking manager responsible for the health care finance group for the bank, which has locations in Ohio, Michigan and Wisconsin. The salary for his new role was not disclosed. From the company’s Ohio head- quarters in Warrensville Heights, Mr. Lynch, 42, will oversee the bank’s 14 local branches, most of which are located in Cleveland suburbs, including Middleburg Heights, North Olmsted and Strongsville. Two branches are in Fairlawn and Medina, too. Mr. Lynch’s goal is to grow several business lines, including mortgage lending, and manage internal expenses. Increasing loans to both businesses and consumers and growing deposits are a “major charge” of his position, he said, as is managing the existing client base. Mr. Lynch said he will measure his success based on internal perfor- mance reports and also by branch activities and the net growth in loan balances — “the number of new names we’re able to bring to the table.” ■ 20101011-NEWS--11-NAT-CCI-CL_-- 10/7/2010 4:17 PM Page 1

OCTOBER 11-17, 2010 CRAIN’S CLEVELAND BUSINESS 11

INSIDE 14 BUSINESSES CAN BENEFIT FROM PAYROLL TAX CREDITS. SMALL BUSINESS Bed bugs may bite into more than skin Exterminators say that eliminating the pests can be a tough job

By AMY ANN STOESSEL [email protected]

ncidences of bed bugs are on the rise in Northeast Ohio, and exterminators are busy with new work from the blood- Isucking squatters. Even so, there’s something that’s been bugging some local pest managers: Is the bed-bug business worth all of the time, energy and investment involved? “It’s an uptick in business,” said John Gedeon Jr., president and general manager of General Pest Control Co. in Cleveland. “But we’re still trying to figure out if it’s a MARC GOLUB profitable uptick.” Mark Sims, president of Sims Chevrolet in Lyndhurst, says his dealership remains profitable this year despite an overall punch last year to auto sales nationwide. That’s because bed bugs are He credits the dealership’s financial position primarily to focusing on selling used cars. tough little critters, often resistant to conventional methods that are available to exterminators. From a business perspective, that can mean new equipment, employee training and labor-intensive, repeated visits to customers. A SIGN OF THE TIMES Rick Novickis, supervisor of envi- ronmental health services at the Cuyahoga County Board of Health, Local auto dealers learn how to roll through tough year in sales said his department this year has responded to 50 bed-bug complaints by shifting some focus to selling used cars, other products compared with 39 complaints for all of 2009. He expects that by year’s end his office will end up having investigated 100 complaints, in By STAN BULLARD more optimistic about the future than addition to “dozens and dozens of [email protected] they were a year ago, challenges remain. calls.” The dealership shakeout will continue, in In response to the uptick in cases, ark Sims, president of Sims part due to Ford Motor Co.’s decision to the Cuyahoga County Board of Chevrolet in Lyndhurst, said drop its Mercury line and emerging Health, the Cleveland Department he believes he’s “in a com- reports that it intends to slash the of Public Health and the Cleveland pletely different industry” number of Lincoln dealers nationally. Museum of Natural History are Msince the big 2008 downturn in the auto Estimates of the bloodletting among hosting a Bed Bug Symposium on business, bankruptcy reorganization by local auto dealers are imprecise. Louis Nov. 4. General Motors Corp. and Chrysler Vitantonio, president of the Greater “Bed-bug infestations can run Corp., and massive downsizing of dealer Cleveland Automobile Dealers’ Associa- into the thousands of dollars,” Mr. ranks. tion, estimates that fewer than 15 of the Novickis said. “It can spiral quickly.” “Things have changed so much,” Mr. association’s 255 members closed in the Indeed, according to a recent Sims said. last year, but he cautions that number survey by the National Pest Although year-to-date auto sales are still is in flux. Management Association and the up 10% through September from the like Jeff Sherman, a partner at the University of Kentucky, 76% of pest period last year, dealers still are recovering Willoughby-based Sherman-Andrzejczyk control managers say bed bugs are from 2009, the weakest year in nearly two appraisal firm, said online realty data the most difficult pest to treat. decades. provider CoStar shows a 9% vacancy rate “I know that not everybody is Making money takes a different set of among the region’s car dealership prop- prepared for them,” Mr. Novickis skills than simply moving cars based on erties, compared to an all-time low of 4% said. “It’s just amazing. … It just how hot they are. Sims Chevrolet remained in 2006. Vacancy peaked at 12% at the seemed to have gotten here faster profitable this year and last, but Mr. Sims end of June, he said, and since has fallen than anticipated.” credits that primarily to its used-car sales. as other dealerships take over empty Although things are better for dealers stores and new owners convert them to Bugged out than last year, and many dealers are See AUTO Page 12 General Pest’s Mr. Gedeon said while he’s seen a definite increase in the parasites over the past five See BUGS Page 12 20101011-NEWS--12-NAT-CCI-CL_-- 10/7/2010 4:14 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 SMALL BUSINESS Auto: Arbitration process helped Bugs: Many anticipate pest

continued from PAGE 11 emphasize used cars, slash adver- dealership to Chrysler’s current problems only will get worse new uses, from tire stores to offices. tising costs rather than staff and specifications. Spitzer also will “We’re still shedding dealer- add a “Quick Lane Tire & Auto replace the Akron store with a new continued from PAGE 11 policies to respond to the current ships, and will for some time,” Mr. Center” in the dealership to one on a site it owns in Green. After years, “last year it just took off.” resurgence. Sherman said. compete directly with auto repair securing Chrysler approval of its The 35-employee family busi- “Until the EPA gets an effective shops. designs, Spitzer hopes to begin ness founded in 1937 works with a product in the hands of the public, Cautiously optimistic “If a guy comes in with a Toyota building the new Green dealership lot of apartment buildings, hotels it’s going to get nothing but Even against that backdrop, for an oil change,” Mr. Mayer said, later this year. and motels, incorporating a com- worse,” said Mr. Kirchner, who confidence is greater than last “what is he going to do? He’ll look “We’re bullish about the future,” bination of treatments, including also is past president of the Ohio year. Consider the way Nick around our dealership. We have Mr. Spitzer said. “We’re more opti- chemicals, vacuuming and steam. Pest Management Association. Mayer, principal of the Nick a chance to wow him with our mistic about the auto business than Over the last three years, General In the meantime, Todd Anderson, Mayer Lincoln-Mercury Inc. Lincolns.” in some time.” Mr. Spitzer and Pest has addressed bed bugs at 230 owner of A-Best Termite and Pest dealership in Westlake, looks at One reason dealers are faring other dealers expect diminished buildings, both apartments and Control, which does business in the future. better was last December’s federal auto retailer ranks to reap improved hotels. “We’re one company in the the Akron and Ravenna areas, “I’m very excited,” Mr. Mayer action to set up an arbitration results whenever car sales return to market. … Look what we have thinks he and a friend may have said. “I’m also scared to death.” process for auto dealers being cut normal levels. touched,” he said. cooked up way to get some extra by Chrysler and GM. Alan Spitzer, business out of the little buggers. He estimates the loss of the No bed of roses One of the methods considered Mercury brand will cut his busi- chairman of Elyria-based Spitzer to be effective in treating bed bugs Along with Tom Shetler of ness by 60%. However, he focuses Auto Group, played a leadership However, problems remain. is the use of heating equipment, Action Now Pest Control in Stras- on the benefit of Ford already role in that effort he compared to Beyond high unemployment which can cost an exterminator burg, Mr. Anderson has designed a cutting six luxury lines such as “climbing a mountain against GM, continuing to sap consumer confi- anywhere from $25,000 to $60,000 mobile heat unit, which is a 16-foot Jaguar from its business. Chrysler and the White House.” dence, credit remains an issue for to purchase. Anything over 113 de- trailer that makes it possible to “What gets me excited is Ford “More than half the dealers buyers. grees is considered lethal for a bed turn up the heat on items emptied focusing on the blue oval again,” nationally benefited from the act,” “Credit availability is better than bug, Mr. Gedeon said. from an infested room. said Mr. Mayer, who expects to Mr. Spitzer said. In Spitzer’s case, any time since 2008,” Mr. Spitzer General Pest recently invested Mr. Anderson, who invested survive the Lincoln dealer down- the 18-store chain wound up with said. “But it has improved marginally. close to $30,000 on such equipment, $12,000 on his trailer, which is still in sizing. He also hopes the automaker four fewer stores. Mr. Spitzer It is nowhere that we need it to be.” and over the past two years it has production, said using the mobile will reward his labors with a larger, expects to gain two more stores in Likewise, Mr. Sims said, lack of hired six employees to handle bed unit could be less expensive for a lively lineup of distinct vehicles locations outside Cleveland this available credit is “absolutely an bugs. customer (a conventional heat under the Lincoln label. year — a far different outcome issue.” He said on a new car averaging Mr. Gedeon said for an apart- treatment can cost a customer a Meanwhile, Mr. Mayer said, it than the 10 dealerships GM and $24,000, many buyers with credit ment owner, the cost of treatment couple thousand dollars), and it is the responsibility of the dealer- Chrysler wanted to shed from his scores of 600 have trouble financing can run from $350 to $600 per could help alleviate the problems ship owner to steer the ship to group. the entire amount; they often settle suite. “That’s where the money associated with bed bugs moving safety. Spitzer wound up retaining its for used vehicles costing $15,000. really gets to be an issue,” he said, from room to room when they “When the forecast is for a Chrysler Dodge dealerships in Another challenge is inventory. stressing that it also depends on sense an increase in temperature. storm, you prepare for it. It was the Parma and Akron. Mr. Spitzer Mr. Sims has not gotten a new the building’s residents. “It’s very The hope is that eventually the same thing for a business owner in expects deliveries of new cars to Chevy Cruze yet, but GM is heavily easy for bed bugs to re-infest.” trailer could be marketed to others this economy,” Mr. Mayer said. resume at both locations later this promoting the new car on TV. Female bed bugs lay from one to in the industry. At the 38-employee Westlake month. However, it will spend “six “They’d be better off promoting it 12 eggs a day; and while bed bug In the first six months of this dealership, the approach was to figures” to renovate the Parma with word of mouth,” Mr. Sims eggs can be hard to spot, adults are year, A-Best Termite and Pest said. brown to reddish-brown, oval Control responded to 24 cases of Many dealers see reduced inven- shaped and flattened. (Of course, bed bugs in comparison to four in tory levels as part of the reshaping their bodies can become elongated, all of 2009. In addition, his eight- of the auto industry in the U.S. swollen and dark red following a tasty person staff also has been conducting NORTHEAST OHIO REGIONAL SEWER DISTRICT because automakers want to late-night snack at your expense.) inspections and training for hotels. produce fewer vehicles to maintain For his part, William P. Kirchner “We really feel in this industry profitability. of Cleveland Chemical Pest Control this is the tip of the iceberg,” said SMALL BUSINESS In Nick Mayer’s case, the dealer is not necessarily complaining about Mr. Anderson. carries a 45-day inventory of new ENTERPRISE PROGRAM the bed bug work his firm is seeing, Hard to sleep tight cars compared to three months of but he stresses it is very labor inventory prior to 2008. intensive, and involves tearing apart Molly Patton, chief operating Ed Babcock, the owner of Junc- a room and moving furniture. officer of Patton Pest Control in tion Buick GMC — now shy the For a typical single-family home, Chagrin Falls, hasn’t treated many Pontiac name — in Chardon, said a job could amount to anywhere cases, but her business is taking on dealers are having to adjust to a from three to eight man hours, average three phone calls a day change from the old days when using a two-man crew. about bed bugs, and has done 25 to factories operated on a “push basis “Granted, it’s more business, 30 inspections so far this year. and shoved product down our everybody’s making more money,” Universally, local pest managers throats” to a pull basis where new he said. “But we have other areas say bed bugs are starting to get cars arrive after floor models sell. where we can make more money.” under people’s skin, so to speak. Mr. Babcock said his great grand- “You don’t have to be embar- father started the business in 1931. They don’t have to bite rassed,” Ms. Patton said. “The richest He is the fourth generation to cope No one quite knows why bed people can have them and the with its cycles. bugs are making such a grand poorest people can have them.” “During World War II we did not return: Some point to increased And while bed begs don’t carry have any new vehicles to sell,” Mr. travel, others to the re-use of furni- any known diseases, they are still Babcock said. “I was here in 1980 ture. Still others say the rise in bed taking a toll. when we did not sell many vehicles bugs can be attributed to restrictions “It has turned into a public health Here’s the sign because of high interest rates. You on the use of certain chemicals. issue from the mental side of it,” try to be smart and don’t overex- And despite industry efforts, the Mr. Kirchner said. “If they’re in your you’re looking for. tend.” ■ U.S. EPA has not changed its house, they’re going to find you.” ■

jewelry pieces, wardrobe accessories, purses, hats, scarves and pieces GRANDOPENINGS designed by local artists. The Black We’re expanding our small-business p.m., Monday, Tuesday, Wednesday Orchid carries lounge wear by David opportunities to provide economic benefits for PATRA and Friday; 10 a.m. to 8 p.m. Thursday; and Goliath, necklaces by Dog Eared, the region and help local companies grow! 28601 Chagrin Blvd., Suite 705 and 10 a.m. to 5 p.m. Saturday. dresses by Judith March and The Woodmere 44122 House of Harlow jewelry collection by 216-342-1420 Nicole Richie. If your company is a small construction or www.patradesigns.com [email protected] engineering company or a provider of goods or Durga Chigurupati, owner of event de- 216-464-4444 professional services, we invite you to apply for sign company Adhya Productions, has THE BLACK ORCHID ACCESSORIES [email protected] opened Patra, an upscale stationery & MORE our SBE program. and floral boutique at Eton Chagrin To submit a new business, send the Boulevard. Featured merchandise in- 28450 Chagrin Blvd. following information by e-mail to cludes hand-engraved stationery from Woodmere 44122 [email protected]: business name; all over the world, greeting cards, www.theblackorchidaccessories.com address; city and ZIP; web site; de- APPLY & LEARN MORE at neorsd.org/sbe journals, custom invitations and gift Corinne Dodero has opened a women’s scription of business; phone number; wrapping, as well as floral arrange- accessories boutique featuring a vari- fax number; business e-mail address; ments. Store hours are 10 a.m. to 6 ety of items, including one-of-a-kind and date that business opened. 20101011-NEWS--13-NAT-CCI-CL_-- 10/8/2010 4:00 PM Page 1

OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 SMALL BUSINESS

So, offering a product for a mass audience would confuse and alienate Review strategy before shifting marketing approach their loyal customer base. The com- pany abandoned the new product efore you invest more in modifying his initial plan. During ready to develop a marketing plan. and focused its engineering and marketing, take another one-on-one phone interviews with LAURASHERIDAN Unsure of which of the new product design expertise exclusively on look at your business strategy. a third-party researcher, customers features to promote in its advertising, products that fit its niche. We’ve worked with many and prospects talked about their the company opted to conduct How do these real life lessons Bclients who want to grow their busi- need for quality products. They also multiple online surveys. The invest- apply to your business? If you’re nesses. Often they’ve underinvested explained that this particular company ment of a few weeks and the minimal itching to put more energy into in marketing and then decide that had a reputation for delivering prod- budget required to conduct the your marketing, re-examine your to meet their goals, they need to ucts with inconsistent quality. research turned out to be vital to business strategy first. And, don’t spend more. However, marketing The CEO took the research the brand’s continued success. forget to check in with your the wrong messages or using the results seriously and the marketing The key insight uncovered with customers before getting started wrong media tools wastes valuable planning went on the back burner. ADVISER research was that the brand’s success to ensure you understand what’s time and money. Improvements to the company’s was tied to being a niche player. important to them. ■ Sure, it’s important to advertise manufacturing processes and begin marketing. The new product, however, targeted to attract buyers, but that’s often intense customer service training ■ Real life lesson No. 3: a mass audience. Ms. Sheridan is president of Viva La not the first step in the process. were implemented. After making The Value of Focus. A specialty Consumers were clear in their Brand, a Cleveland-based marketing Instead, understanding what your quantified progress on product consumer goods manufacturing firm research responses. Part of the strategy and ad agency search firm. target audience wants and being quality, the company was ready to had designed a new product and was brand’s appeal was its exclusivity. www.vivalabrand.com. able to deliver it comes first. After completing inexpensive and quick consumer research, our clients often learn that they need to refine their business strategy before developing a “new or improved” marketing plan. Here are three real world lessons learned by other Cleveland busi- nesses: ■ Real life lesson No. 1: The Power of Speed. A manufacturing company was growing and prof- itable but had never put a lot of energy into marketing. After being badgered by the board for the com- pany’s unsophisticated marketing program, the CEO decided to invest more heavily in advertising. The company engaged an ad agency and attempted to provide direction regarding what they wanted the advertising to commu- nicate. This effort was wasted when the CEO quickly realized that they didn’t know what messages to include in their advertising. After this initial misstep, and with the help of a third party, they devised a streamlined research plan to hear, firsthand, what their prospects cared about. While the CEO was convinced that he knew what they would say, he was surprised at the study’s findings. Prospects shared more about their perceptions of the company, its service and products with the third- party researcher than they had with the CEO or sales manager over many years. The research identified a key insight that dramatically influenced the future of the company. They learned that speed matters. Prospects were clamoring for a company to provide fast delivery. So, the CEO changed its inventory strategy and manufacturing operations to ship faster. Only after this change was implemented was the company ready to invest in marketing. By conducting research before embarking on advertising, our client was able to identify a message that resonated with its audience and differentiated its brand from competitors. ■ Real life lesson No. 2: The Importance of Quality. A medical device company’s sales were slug- gish and they decided to focus on marketing. As a first step, they chose to conduct research to identify what was important to their target audience. They also probed to find out how their prospects wanted to receive their messages. Should their ads appear on TV, radio, the Internet, cell phones or in ways they may not have considered? Once again, customer research led to uncovering a major customer insight which resulted in the CEO 20101011-NEWS--14-NAT-CCI-CL_-- 10/7/2010 1:43 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 SMALL BUSINESS IRS offers insight on payroll tax credits for new hires

ith the economy finally payroll tax exemption and the tax The employment tax exemption penalties of perjury that this is the showing signs of life in credit. CARLGRASSI applies to the employer’s 6.2% case. certain sectors, some Legislation enacted earlier this share of the Social Security tax on The FAQs make it clear that work employers are begin- year provides for a payroll tax wages paid to qualified employees performed as a self-employed indi- ningW to evaluate whether now is exemption for employers who hire from March 19 through the end of vidual does not count in determining the time to begin hiring new unemployed workers, and a tax the year. A qualified employee is a whether the worker has met this employees. credit of up to $1,000 for retaining previously unemployed individual test. The IRS recently issued a list of these new hires for at least one who began employment after Feb. 3 The FAQs on the payroll tax frequently asked questions relating year. The tax savings from these and before the end of this year. exemption provide guidance in the to the 2010 payroll tax credit for two programs potentially is signifi- The employee will qualify for the areas of hiring employees who were hiring unemployed workers, and cant. TAX TIPS payroll tax exemption if he or she formerly terminated and employees the related tax credit for retaining The Treasury Department has has not been employed for more who are replacing a former employee. these workers. estimated that, through June, over $10 billion, assuming 75% of than 40 hours during the 60-day For instance, the FAQs make it The FAQs provide important employers who hired workers those workers were employed for period ending on the date employ- clear that individuals who have guidance on critical issues relating eligible for the payroll tax exemp- the full year required to take advan- ment begins. The worker must been on furlough or have been to the availability of both the tion would, in the aggregate, save tage of the tax credit. certify by signed affidavit under subject to a temporary layoff can be qualified employees when they resume active status as long as the furlough or temporary layoff consti- tuted a termination of employment and, upon hiring, the requirements to be a qualified employee as noted above are satisfied. A SECOND OPINION SAVED US Obviously, the IRS doesn’t want the tax benefits to create an incen- tive to terminate an employee for the sole purpose of hiring a new * employee in order to get the credit. A new hire who replaces a former employee can be a qualified employee if the employee whose position is being filled either termi- nated employment voluntarily; was terminated for misconduct or poor performance; or was terminated as part of a reduction in force due to lack of work. The FAQs also provide guidance on the credit for retaining new hires. The amount of the credit is the lesser of $1,000 or 6.2% of TIMES ARE TOUGH, BUT WE’RE STILL GOING, and a Citizens Bank Second Opinion helped us get there. After wages, as defined for income tax withholding purposes. examining every aspect of our business, a Citizens Banker found ways we could save more money, be more In order to receive this credit, the efficient – for our business and personal accounts. employment relationship of the newly hired employee must not be terminated during the 52-week Make time to meet with a Citizens Banker. To schedule your Citizens Bank Second Opinion, CALL 800-946-2264 period after hire. The wages paid or go online to CITIZENSBANKING.COM/OPINION. for the second half of the year must be at least 80% of the wages for the first half. The IRS has made several clarifi- cations regarding this credit. First, there is the potential for an employer to receive multiple credits for the same employee. The FAQs make it clear, for example, that an employer who claims the “work opportunity tax credit” for a particular employee also can take the new hire retention credit. The FAQs also make it clear that in addition to the requirement that the employee must be retained for 52 weeks in order to claim the credit, the employee must be hired before Jan. 1, 2011. Since the credit only can be claimed for the first taxable year in which the retained worker satisfies the 52 consecutive week test, for calendar-year businesses the credit will be taken on the 2011 tax return. Both the payroll tax exemption and the credit for the retention of newly hired individuals provide a significant tax benefit for employers considering an increase in their work force. At the same time, employers should pay careful attention to the qualification rules and record- keeping requirements to ensure they receive the benefits of these programs. ■ * Results may vary depending on your business situation.

Mr. Grassi is a member and presi- dent of McDonald Hopkins LLC. 20101011-NEWS--15-NAT-CCI-CL_-- 10/8/2010 3:56 PM Page 1

OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15

controller, corporate. Fowler to vice presidents; Mary Ann GOING PLACES NONPROFIT Stropkey to treasurer. CLEVELAND LEADERSHIP CENTER: TRANSPORTATION NATIONAL ASSOCIATION OF director of client services. JOB CHANGES Marianne Crosley to president, CEO. GREATER CLEVELAND REGIONAL PERSONAL FINANCIAL ADVISORS, ZINNER & CO.: Andrea Sheets to UNIVERSITY CIRCLE INC.: Erika TRANSIT AUTHORITY: Mary McCahon MIDWEST BOARD: Barbara EDUCATION tax manager. McLaughlin to public affairs manager. to media relations manager. Camaglia (Legacy Financial Advisors NORTHEASTERN OHIO UNIVERSITIES LLC) to president. HEALTH CARE COLLEGES OF MEDICINE AND REAL ESTATE BOARDS PHARMACY: Dr. Jeffrey l. Susman SUMMA HEALTH SYSTEM: Tom JONES LANG LASALLE: Steve AWARDS APICS CLEVELAND CHAPTER: Dennis to dean, College of Medicine. DeBord to president, Summa Scheer to senior manager, Project Okocha (Henkel Corp.) to president. ARTHRITIS FOUNDATION NORTH- Barberton Hospital and Summa and Development Services. FINANCIAL SERVICE Wadsworth-Rittman Hospital. BEECH BROOK: Bari Goggins EASTERN OHIO CHAPTER: Ronald OPTIMA VENTURES LLC: Margaret B. Richard (Cleveland Foundation) MORGAN STANLEY SMITH BARNEY: (Ulmer & Berne) to chairman; Nancy Toth to chief financial officer. received a Community Leader of the Eve Moss to financial adviser. INSURANCE Klein and Walter Stuelpe to vice MEDICAL MUTUAL OF OHIO: Dan co-chairs, administration; Kathy Year Award. PARKLAND FINANCIAL ADVISORS Polk to director, sales and broker RETAIL Pender and Jane Outcalt to vice OHIO HOTEL & LODGING ASSOCI- LLC: Nicoleta Bortan to vice relations. COLLECTION AUTO GROUP: Rob co-chairs, development; Tom Seifert ATION: Michael Cooper (InterConti- president. Kistler to vice president, CFO. to vice chair, finance and treasurer. nental Hotels Cleveland) received the MANUFACTURING MUSEUM OF CONTEMPORARY Cleveland Area Manager of the Year FABER-CASTELL USA: Susan UTILITY ART CLEVELAND: Scott Mueller Award. Mintmire to national sales manager, FIRSTENERGY CORP.: Jon Taylor (Dealer Tire) to chairman; Ronald H. craft market; Rebecca Adkins to to assistant controller, FirstEnergy Neill to president; Toby Lewis, Send information for Going Places to human resources manager. Utilities; Kevin Burgess to assistant Harriet L. Warm and Charlotte [email protected].

Susman Bortan Dombcik

Goldberg Polk Mintmire

Adkins McLaughlin Scheer

Kistler Taylor Burgess

SS&G: Tina Holyak, Megan Bair and Christopher Kerr to senior associates; Tracey Campbell to billing senior associate; Heather Ross to operations manager; Robert Thorne II to project manager/analyst; Matt Keppler to operations senior associate. WEALTH STRATEGIC ADVISORS LLC: Shari Dombcik to director of operations; Laurel Goldberg to

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16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 LARGEST ACCOUNTING FIRMS RANKED BY NUMBER OF LOCAL CPAS

Number of local CPAs Practice personnel engaged in Name Number of degreed Full-time Address professionals permanent Audit- Top local executive Rank Phone/Web site 8/31/2010 8/31/2009 % change 8/31/2010 employees accounting Tax Consulting Other Title Ernst & Young LLP Donald T. Misheff 1 925 Euclid Ave., Suite 1300, Cleveland 44115 222 234 -5.1% 801 995 376 116 NA 503 Northeast Ohio managing (216) 861-5000/www.ey.com partner PricewaterhouseCoopers LLP Bob Saada, 2 200 Public Square, 18th floor, Cleveland 44114 161 155 3.9% 285 299 180 85 0 44 Market and Cleveland office (216) 875-3000/www.pwc.com managing partner Deloitte 3 127 Public Square, Cleveland 44114 130 130 0.0% 400 442 121 61 188 4 Craig Donnan (216) 589-1300/www.deloitte.com managing partner SS&G 4 32125 Solon Road, Cleveland 44139 113 112 0.9% 357 329 91 81 164 66 Gary S. Shamis (440) 248-8787/www.ssandg.com managing director KPMG LLP 5 1375 E. Ninth St., Suite 2600, Cleveland 44114 100 90 11.1% 165 175 70 10 85 10 John S. MacIntosh (216) 696-9100/www.us.kpmg.com managing partner Cohen & Co. 6 1350 Euclid Ave., Suite 800, Cleveland 44115 96 89 7.9% 169 183 75 44 36 28 Randall S. Myeroff (216) 579-1040/www.cohencpa.com president, CEO Meaden & Moore LLP 7 1100 Superior Ave., Suite 1100, Cleveland 44114 80 78 2.6% 156 124 58 36 54 22 James P. Carulas (216) 241-3272/www.meadenmoore.com CEO Maloney + Novotny LLC 8 1111 Superior Ave., seventh floor, Cleveland 44114 67 59 13.6% 93 120 80 22 6 12 Matthew J. Maloney (216) 363-0100/www.maloneynovotny.com managing shareholder CBiz Inc. 9 6050 Oak Tree Blvd. S., Suite 500, Cleveland 44131 56 53 5.7% 136 188 29 18 49 119 Steven L. Gerard (216) 447-9000/www.cbiz.com chairman, CEO Skoda Minotti 10 6685 Beta Drive, Mayfield Village 44143 55 54 1.9% 104 120 59 23 27 11 Gregory J. Skoda (440) 449-6800/www.skodaminotti.com chairman Bruner-Cox LLP 11 388 S. Main St., Suite 403, Akron 44311 50 50 0.0% 83 102 31 32 20 19 Ronald J. Manse (330) 376-0100/www.brunercox.com managing partner Grant Thornton LLP 12 1228 Euclid Ave., Suite 800, Cleveland 44115 48 54 -11.1% 85 95 50 25 7 10 Daniel S. Zittnan (216) 771-1400/www.grantthornton.com managing partner NEW TAX-SAVING OPPORTUNITIES Register for a free seminar: http://clevelandtaxseminar.plantemoran.com

Number of local CPAs Practice personnel engaged in Name Number of degreed Full-time Address professionals permanent Audit- Top local executive Rank Phone/Web site 8/31/2010 8/31/2009 % change 8/31/2010 employees accounting Tax Consulting Other Title RSM McGladrey/McGladrey & Pullen LLP Jim Grigg 13 1001 Lakeside Ave., Suite 1400, Cleveland 44114 45 58 -22.4% 65 77 42 18 1 15 Donna Sciarappa (216) 523-1900/www.mcgladrey.com managing directors Apple Growth Partners 14 1540 W. Market St., Akron 44313 38 39 -2.6% 82 90 33 43 40 22 David J. Gaino (330) 867-7350/www.applegrowth.com chairman Hill Barth & King 14 7680 Market St., Boardman 44512 38 34 11.8% 56 84 NA NA NA NA Phillip L. Wilson (330) 758-8613/www.hbkcpa.com COO Howard, Wershbale & Co. 16 23240 Chagrin Blvd., Cleveland 44122 37 35 5.7% 68 75 25 12 22 9 Stephen E. Stanisa (216) 831-1200/www.hwco.com president, CEO Bober, Markey, Fedorovich & Co. 17 3421 Ridgewood Road, Suite 300, Akron 44333 35 32 9.4% 65 70 42 18 5 NA Richard C. Fedorovich (330) 762-9785/www.bobermarkey.com CEO, managing partner Ciuni & Panichi Inc. 18 25201 Chagrin Blvd., Suite 200, Cleveland 44122 34 31 9.7% 53 60 30 13 10 7 Charles M. Ciuni (216) 831-7171/www.cp-advisors.com chairman Barnes Wendling CPAs Inc. 19 1215 Superior Ave., Suite 400, Cleveland 44114 32 36 -11.1% 65 75 42 35 10 16 Jeffrey D. Neuman (216) 566-9000/www.barneswendling.com president Walthall Drake & Wallace LLP 19 6300 Rockside Road, Suite 100, Cleveland 44131 32 33 -3.0% 42 48 30 8 3 1 Richard T. Lash (216) 573-2330/www.walthall.com chairman BCG & Co. 21 1735 Merriman Road, Akron 44313 29 30 -3.3% 64 77 17 26 23 0 David A. Brockman (330) 864-6661/www.bcgcompany.com managing director Zinner & Co. LLP 22 29125 Chagrin Blvd., Pepper Pike 44122 24 23 4.3% 30 37 19 14 4 0 Robin L. Baum (216) 831-0733/www.zinnerco.com managing partner Four-Fifteen Group 23 4100 Holiday St., Canton 44718 21 20 5.0% 38 44 10 21 8 5 Frank J. Monaco (330) 492-0094/www.415group.com managing partner Hobe & Lucas CPAs Inc. 23 4807 Rockside Road, Suite 510, Independence 44131 21 21 0.0% 29 34 23 3 2 1 Jerome J. Lucas (216) 524-8900/www.hobe.com president, COO Pease & Associates Inc. 23 1422 Euclid Ave., Suite 801, Cleveland 44115 21 19 10.5% 41 48 19 20 2 7 Joseph V. Pease Jr. (216) 348-9600/www.peasecpa.com president

See LIST Page 18 20101011-NEWS--17-NAT-CCI-CL_-- 10/8/2010 3:07 PM Page 1

OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17

ID: 34-1816713 TAX LIENS Date filed: Aug. 10, 2010 Type: Employer’s withholding The Internal Revenue Service filed tax Date filed: Aug. 24, 2010 Amount: $15,597 liens against the following businesses Type: Employer’s withholding in the Cuyahoga County Recorder’s Amount: $22,434 K & L Transport Inc. Office. The IRS files a tax lien to 24381 Aurora Road, Bedford Heights protect the interests of the federal Harold Pollock Co. LPA ID: 34-1798453 government. The lien is a public 5900 Harper Road, Suite 107, Solon Date filed: Aug. 17, 2010 notice to creditors that the govern- ID: 34-1530164 Type: Employer’s withholding ment has a claim against a company’s Date filed: Aug. 19, 2010 Amount: $15,160 Real Estate/Construction Type: Employer’s withholding property. Liens reported here are Joseph J. Bibbo Inc. $5,000 and higher. Dates listed are Amount: $21,964 3601 Trumbull Ave., Cleveland John Funk, the dates the documents were filed in Systems Modulation and Integration ID: 34-1478456 Director of the Recorder’s Office. for Life-Style Enhancement Inc. Date filed: Aug. 24, 2010 Real Estate Practice 24000 Mercantile Road, Suite 1, Type: Civil penalty assessment LIENS FILED Beachwood Amount: $14,550 ID: 34-1874127 Property is as unique as its owner. Our Lakewood Foursquare Church Buckeye Painting and Decks Inc. Date filed: Aug. 10, 2010 clients benefit from our depth of industry 2150 Warren Road, Lakewood 4518 Renaissance Parkway, Cleveland Type: Employer’s withholding ID: 94-2961674 ID: 34-1790702 knowledge and our commitment to offering personal- Amount: $21,476 Date filed: Aug. 3, 2010 Date filed: Aug. 5, 2010 ized attention and insightful solutions. The knowledge Type: Employer’s withholding Ohio Natural Stone LLC Type: Employer’s withholding, of a trusted advisor can make the difference between a Amount: $48,928 760 W. Bagley Road, Berea unemployment ID: 30-0260193 Amount: $13,880 strong or shaky foundation. Crossroads REO Inc. Date filed: Aug. 3, 2010 17149 Southpark Center, New Management Inc. The Maloney + Novotny Real Estate Practice combines Type: Employer’s withholding Strongsville 12800 Shaker Blvd., Cleveland a wealth of experience with a passion for understand- Amount: $19,716 ID: 20-3059036 ID: 13-4324891 ing the ever-changing landscape involved in property Date filed: Aug. 17, 2010 Quality Care Residential Homes Inc. Date filed: Aug. 10, 2010 Type: Employer’s annual federal tax 9402 Rosewood Ave., Cleveland Type: Employer’s withholding, development, ownership and management. return ID: 75-3189085 unemployment Amount: $38,090 Date filed: Aug. 17, 2010 Amount: $13,268 Type: Employer’s withholding First Choice Homecare Inc. Premium Technical Services Inc. Amount: $19,488 401 Towpath Trail, Suite C, 4760 Lander Road, Orange Village Broadview Heights Clinical Technology Inc. ID: 34-1743417 ID: 34-1876809 1801 E. Ninth St., Cleveland Date filed: Aug. 3, 2010 Date filed: Aug. 19, 2010 ID: 34-1293451 Type: Corporate income Type: Employer’s withholding Amount: $11,766 Date filed: Aug. 24, 1010 + Business Advisors and Certified Public Accountants Amount: $38,043 Type: Employer’s withholding Young Futures Amount: $19,370 Close to Home Child 18320 Euclid Ave., Cleveland + Cleveland 216.363.0100 ID: 34-1870360 Development Center Inc. Bass Lake Child Care of Mentor Canton 330.966.9400 Date filed: Aug. 24, 2010 3855 Carnegie Ave., Cleveland 1970 S. Taylor Road, Cleveland Heights Elyria 440.323.3200 Type: Employer’s withholding, ID: 34-1894838 ID: 30-0566013 maloneynovotny.com unemployment Date filed: Aug. 12, 2010 Date filed: Aug. 19, 2010 Amount: $11,583 Type: Employer’s withholding, Type: Employer’s withholding, unemployment unemployment Title Access LLC Amount: $29,349 Amount: $17,505 27887 Clemens Road, Suite 1, Westlake ID: 34-1926916 J. Gerchak III Inc. Global Tracking Services Inc. Date filed: Aug. 24, 2010 8601 Oakridge Drive, Olmsted Falls 1414 S. Green Road, Suite 106, Type: Failure to file complete return ID: 34-1836749 South Euclid Amount: $11,100 Date filed: Aug. 5, 2010 ID: 26-1733470 Type: Employer’s withholding, Date filed: Aug. 27, 2010 unemployment Type: Employer’s withholding Amount: $27,403 Amount: $16,579 Royal American Group Co. Disaster Restoration Management 30195 Chagrin Blvd., Suite 210, Inc. Servicemaster of Shaker Pepper Pike 4530 Renaissance Parkway, Cleveland ID: 34-1847147 ID: 34-1942028 Date filed: Aug. 24, 2010 Date filed: Aug. 17, 2010 Type: Employer’s withholding Type: Employer’s withholding Amount: $24,208 Amount: $15,817 Dollars GC&E Inc. Etcetera Services Inc. Housework 25440 Miles Road, Bedford Heights Etc. and Unpacking Etc. ID: 31-1491227 P.O. Box 40041, Bay Village and Sense When choosing an accounting firm, our quality people, BUSINESS. service and results just make good sense. Commercial Banking is our business. Let us bring our accounting expertise to your organization. To schedule a consultation, please Proud Recipient call Joe Pease at of the 2010 216.348.9600. LIBERTYLIBERTY BANK,BANK, N.A.N.A.

C MEMBER FDIC BEACHWOOD HQ 216.359.5500 N N Building our bank one quality relationship at a time. 1422 EUCLID AVENUE, SUITE 801 CLEVELAND, OHIO 44115 WWW.PEASECPA.COM 20101011-NEWS--18-NAT-CCI-CL_-- 10/8/2010 2:00 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 LARGEST ACCOUNTING FIRMS RANKED BY NUMBER OF LOCAL CPAS

Number of local CPAs Practice personnel engaged in Name Number of degreed Full-time Address professionals permanent Audit- Top local executive Rank Phone/Web site 8/31/2010 8/31/2009 % change 8/31/2010 employees accounting Tax Consulting Other Title Corrigan Krause 26 2055 Crocker Road, Suite 300, Westlake 44145 19 19 0.0% 27 26 15 6 3 NA Thomas L. Harrison (440) 471-0800/www.corrigankrause.com managing director Plante & Moran PLLC 26 1111 Superior Ave., Suite 1250, Cleveland 44114 19 18 5.6% 31 37 20 6 5 0 Daniel P. Hursh (216) 523-1010/www.plantemoran.com office managing partner Schroedel, Scullin & Bestic LLC 26 196 N. Broad St., Canfield 44406 19 17 11.8% 27 27 19 7 5 4 Gregory C. Bestic (330) 533-1131/www.ssb-cpa.com managing principal Rea & Associates Inc. 29 7325 Production Drive, Suite C, Mentor 44060 17 23 -26.1% 30 45 20 15 3 0 Ryan Dumermuth (440) 266-0077/www.reacpa.com Mentor office manager Crowe Horwath LLP 30 600 E. Superior Ave., Suite 902, Cleveland 44114 14 17 -17.6% 36 41 19 1 16 5 Greg McClure (216) 623-7500/www.crowehorwath.com partner Card, Palmer, Sibbison & Co. 31 4545 Hinckley Parkway, Cleveland 44109 11 10 10.0% 14 16 15 16 7 NA James E. Stroh (216) 621-6100/www.cps-cpa.com president McManus, Dosen & Co. 31 7251 Engle Road, Suite 406, Middleburg Heights 44130 11 11 0.0% 15 17 15 15 10 NA Michael D. McManus (440) 243-3400/www.mcmanusdosen.com managing partner The D'Amore Tatman Group LLC 33 3659 Green Road, Suite 124, Beachwood 44122 10 9 11.1% 12 16 6 7 NA NA Dominic M. D'Amore Jr. (216) 378-1550/www.dtgroup.net managing member Schlabig & Associates Ltd. 33 525 Wolf Ledges Parkway, Akron 44311 10 11 -9.1% NA 16 5 6 4 NA Thomas R. Hager (330) 253-4424/www.schlabig.com managing partner Levin Swedler & Co. 35 3501 Embassy Parkway, Akron 44333 9 9 0.0% 10 12 12 12 3 NA Gary D. Levin (330) 666-4199/www.levinswedler.com president Baumgarten & Co. LLP CPA 36 1422 Euclid Ave., Suite 1104, Cleveland 44115 8 8 0.0% 14 17 14 14 6 NA Larry Yunaska (216) 781-4300/www.baumgartencpa.com managing partner Cunningham & Associates CPAs Inc. 36 60 Eagle Valley Court, Broadview Heights 44147 8 9 -11.1% 11 18 7 13 3 3 Glenn Cunningham (440) 717-1350/www.c-p-a.com president Dingus & Daga Inc. 36 20600 Chagrin Blvd., Suite 701, Shaker Heights 44122 8 9 -11.1% 18 21 15 3 NA NA Manohar Daga (216) 561-9200/www.dndcpas.com president Libman, Goldstine, Kopperman & Wolf 36 600 Superior Ave. E., Suite 925, Cleveland 44114 8NANANANANANANANANA (216) 373-2500/www.lgkw.com The Siegfried Group LLP 40 6100 Oak Tree Blvd, Suite 200, Independence 44131 7 5 40.0% 10 10 9 1 9 10 Brian D. Seidner (216) 643-2917/www.siegfriedgroup.com director, Northeast Ohio Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these RESEARCHED BY Deborah W. Hillyer listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com.

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OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 NORTHEAST OHIO'S NASA: R&D funding an issue continued from PAGE 3 giving it a chance to build off work Rep. LaTourette argued that NASA TOP SBA LENDERS years, said Dr. Bailey, who also is already started. Glenn was better off under Constel- a senior physicist at NASA Glenn. “In the end I think it’ll work out lation. Private contractors, however, still pretty well for Glenn,” Dr. Bailey The center had won a solid spot RANKED BY DOLLAR VALUE OF 7(A) could be laid off. said. in that program and now will need Aside from that protection, Dr. to go back to fighting bigger NASA LOANS THROUGH FOURTH QUARTER Bailey didn’t heavily favor either Wrestling over the pie centers for money, the Bainbridge FY 2010 the Senate bill or the House bill. U.S. Reps. Marcia Fudge and Township Republican said. Though the House bill provides Charlie Wilson — the only mem- “NASA Glenn is going to have to more for research and technology, bers of Ohio’s congressional dele- fight tooth and nail every year to get This Company name Dollar value of year Headquarters approved loans Number of loans the numbers in the bills only matter gation who sit on the House its piece of the pie,” he said. so much, she said, because final Science and Technology Committee The House on Sept. 29 passed the 1 Huntington National Bank 54,599,300 352 dollar figures won’t be determined — supported the bill as well. bill 304-118, but in August the Columbus until the bill goes through the Rep. Fudge, a Democrat from Senate passed it unanimously. Fifth Third Bank appropriations process. Warrensville Heights, said NASA Allison Preiss, a spokeswoman for 2 Cincinnati 12,197,500 30 Either bill, however, would have Glenn will fare better under the new U.S. Sen. Sherrod Brown, said the been better for NASA Glenn than plan than it did under Constella- Avon Democrat pushed for language JPMorgan Chase & Co. 3 New York 10,902,800 76 Constellation, Dr. Bailey said. The tion. protecting NASA’s government Bush-era program, which focused She cited as one reason the $250 employees. She described the bill’s 4 KeyBank NA 10,521,000 71 on designing two new rockets to million that the Senate bill marked passage as “an important first step Cleveland replace the Space Shuttle, was for a new financing category called towards NASA Glenn’s revitaliza- underfunded and destined to miss “Exploration Technology Develop- tion.” Lorain National Bank 6,142,900 24 5 Lorain its original goal of returning to the ment” in fiscal year 2011. The bill U.S. Sen. George Voinovich has moon by 2020 as a precursor to also provides $350 million in fiscal said in news reports he allowed the CFBank 6 Fairlawn 5,449,000 23 putting a human on Mars, she said, 2011 for another new category bill to pass only because he was agreeing with a presidential task called “Space Technology.” NASA promised language protecting First Place Bank force’s assessment. Glenn expertise is expected to help NASA Glenn’s role would later be 7 Warren 4,902,000 8 Under the new plan, NASA aims the center win assignments in both added. The House made no to send humans to an asteroid categories. changes to the bill. 8 Grow America Fund Inc. 4,871,000 7 New York by 2025 and to Mars by the mid- Rep. Fudge said many NASA The Greater Cleveland Partner- Ohio Commerce Bank 2030s. officials, including administrator ship plans to push for such protec- 9 Beachwood 4,248,500 9 Dr. Bailey said she imagines Charles Bolden, the agency’s tions when Congress starts the there is some trepidation among leader, assured her the plan would appropriations process, said Nick FirstMerit Bank NA the estimated 250 people at NASA benefit NASA Glenn. Gattozzi, vice president of govern- 10 Akron 4,080,300 37 Glenn who are assigned to Constel- U.S. Reps. Steven LaTourette and ment relations for the group. The 11 Charter One Bank NA 3,686,500 65 lation projects, but she says many Dennis Kucinich were among those partnership is concerned that money Providence, R.I. center employees think NASA Glenn who opposed the legislation. They might be shifted from research and PNC Bank will be better off under the new circulated a letter to the rest of technology development to pay 12 3,610,800 14 plan. Ohio’s delegation, urging its mem- for an extra Shuttle flight that the Both Mr. Lugo and Dr. Bailey said bers to back the House bill over the Senate bill added to NASA’s sched- Westfield Bank FSB 13 Westfield Center 3,428,400 12 they expect NASA Glenn will win Senate bill. ule for fiscal 2011 and other near- work related to the heavy lift rocket The letter attacked the Senate bill term projects focused on space 14 Citizens Bank 3,098,100 17 that NASA will develop to comple- for reducing money available for travel. Flint, Mich. ment privately developed rockets. technology research and develop- “When exploration needs addi- The bill specifies that the space ment while putting too much focus tional funds they go and raid places Citizens Banking Co. 2,951,000 7 15 Sandusky agency is to use technologies from on helping private companies like technology development, research the Space Shuttle and the Constel- develop rockets. and aeronautics,” Mr. Gattozzi Genoa Banking Co. ■ 16 Genoa 2,309,000 7 lation program to the extent practical, In a conversation with Crain’s, said. Consumers National Bank 17 Minerva 2,147,100 10 United Western Bank No better time to invest in yourself 18 Denver 2,103,000 2

19 First Federal Bank of the Midwest 2,059,100 4 Defiance The Fisher Executive MBA First Western SBLC Inc. 20 Dallas, Texas 1,965,000 2 U.S. Bank NA “ 21 Cincinnati 1,903,500 29 5IF'JTIFS&.#"QSPHSBNIBTVOEPVCUFEMZCFFOPOFPGUIFCFTU JOWFTUNFOUEFDJTJPOT*IBWFNBEFJONZDBSFFS5IFQPXFSPGB First Colorado National Bank 22 Paonia, Colo. 1,800,000 2 XPSMEDMBTTGBDVMUZDPVQMFEXJUIBEJWFSTFNJYPGQFPQMFGSPN NBOZJOEVTUSJFTBOEEJTDJQMJOFTDSFBUFBOFYUSBPSEJOBSZMFBSOJOH 23 Compass Bank 1,564,600 3 Birmingham, Ala. FOWJSPONFOU5IFQSPHSBNIBTHJWFONFUJNFMZ QSBDUJDBMUPPMTUIBU CIT Small Business Lending Corp. *IBWFJNNFEJBUFMZJOUFHSBUFEJOUPNZDPNQBOZ1FSIBQTNPSF 24 Livingston, N.J. 1,543,000 2 JNQPSUBOUMZ *IBWFEFWFMPQFEGSJFOETIJQTUIBU*LOPXXJMMMBTUB The Henry County Bank MJGFUJNF'JTIFSJTQSPPGQPTJUJWFUIBUMFBSOJOHOFWFSDFBTFT  25 Napoleon 1,469,500 2 FYQFDUBUJPOTDBOCFFYDFFEFEBOEPMEEPHTSFBMMZDBOMFBSO First Financial Bank ” 26 El Dorado, Ark. 1,409,400 1 OFXUSJDLT Chuck Rotuno 27 First National Bank 1,325,000 4 Orrville &YFDVUJWF.#"$MBTTPG 28 Enterprise Bank 1,300,000 1 1SFTJEFOUBOE$&0 Alison Park, Pa. 0&$POOFDUJPO Portage Community Bank 29 Ravenna 1,298,800 9 Wayne Savings Community Bank 30 Wooster 1,032,500 4 ”15th best Executive MBA program worldwide” BusinessWeek 2009 This list was compiled from information provided by the Cleveland Researched by District office of the SBA through the fourth quarter of FY 2010 Deborah W. ending Sept. 30, 2010. The Cleveland District covers 28 northern Hillyer There’s still time to apply for the class beginning December 2010. Ohio counties. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are t "ONPOUIQSPHSBN 1GBIM)BMM complete or accurate. We welcome all responses to our lists and 88PPESVGG"WF $PMVNCVT 0IJP will include omitted information or clarifications in coming issues. t 5ISFFDPOTFDVUJWFDMBTTEBZT 5I ' 4 PODFBNPOUI   Individual lists and The Book of Lists are available to purchase at t "O""$4#BDDSFEJUFE.#"GSPNBUPQCVTJOFTTTDIPPM www.crainscleveland.com. t 8PSMESFOPXOFEGBDVMUZ t "HMPCBM JOUFHSBUJWFDVSSJDVMVNXJUIBQSPKFDUBCSPBE Order Lists on-line... www.CrainsCleveland.com/Lists -FBSONPSFBUfisher.osu.edu/emba. 20101011-NEWS--20-NAT-CCI-CL_-- 10/8/2010 3:15 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010 Flats: Prospects for residential growth intrigue stakeholders

continued from PAGE 1 Cleveland Rowing Foundation has to things like the bought the former Commodore and all the restaurants in Ohio City Club marina for $3 million. The and Tremont,” said Mr. Halko, who rowing group plans to use the prop- lives on West Ninth Street just up erty for boat storage and meeting the hill from the Flats. His new space and intends to create Rivergate office will be two blocks from the Park, a new, two-acre public park. It and the Center also wants to offer kayak and canoe Street bridge. rentals. The river draws rowers from People always have been drawn area clubs, high schools and colleges to water. Indeed, the history of most to the Flats, sometimes in big great cities is tied to their location numbers. On Sept. 18, for example, along rivers or lakes. And when the 15th annual Head of the Cuya- access is available and attractive, hoga Regatta attracted 1,000 rowers waterfronts are magnets for tourists from colleges and high schools ABOVE: Longtime Flats business owner Jack Ecke, who owns the Sunoco service station and Ecke’s Towing Service on and residents alike. around the region and 2,000-plus Columbus Road, bought the 2,200-square-foot building on the left of this photo because of the Flats’ potential. “There is Those factors helped make the spectators to the river. always attraction here. No matter who you are, the water attracts you, even if it is eating in a restaurant and watching Flats the nightlife mecca it was in “You’re seeing more recreational (ore) boats go by.” BELOW: A portion of the land acquired by the Ohio Canal Corridor and the Trust for Public Land for the the 1980s and into the 1990s, but uses down there,” said Anthony Towpath Trail. the new Flats is learning to play Coyne, a lawyer and chairman of the more than one tune. Bars and Cleveland City Planning Commis- with Canal Basin Park, a 20-acre park restaurants may return, but the sion, who was one of those specta- the city of Cleveland plans to create hope is that daytime visitors and tors. “It bodes well for the Flats.” along the river near the southern end more residents will inhabit the In August, two nonprofit groups, of the Center Street bridge. banks of the Cuyahoga that run the Ohio Canal Corridor and the Those two projects are vital links through the Flats. Trust for Public Land, engineered in a trail that runs 100 miles and People who talk up the Flats see the purchase for $4.8 million of two takes in the Cuyahoga Valley National recreation as a new calling card of parcels of land that will help connect Park. the neighborhood. the Towpath Trail — a pedestrian From martinis to marketing They cite as an example last and bike trail that begins near New month’s announcement that the Philadelphia in southeast Ohio — Cleveland City Councilman Joe Cimperman, whose ward covers downtown, includes those projects in what he foresees as more than $1 STATEMENT OF OWNERSHIP MANAGEMENT AND CIRCULATION billion in investment in the Flats 1. Publication title: Crain’s Cleveland Business area in the next few years. 2. Publication No.: 532-210 Also on his list is the stalled, $275 3. Filing Date: 9/30/10 4. Issue Frequency: Weekly, except combined issues on 4th & 5th week of May, 4th week of June and 1st week of million Flats East Bank mixed-use July and 3rd and 4th week of December. project of the Wolstein Group and the service station’s business shift twice the space as their Lorain Road 5. No. of Issues Published Annually: 49 6. Annual Subscription Price: $64.00 Fairmount Properties, a skateboard from serving primarily commercial office in North Olmsted. But, he 7. Complete Mailing Address of Known Office of Publication: Crain Communications Inc., 700 W. St. Clair, Suite 310, park the city plans to build near and boating accounts to selling gas added, the two want to position Cleveland, Cuyahoga County, OH 44113-1230. Contact Person: Jim Cantley (313) 446-1615 8. Complete Mailing Address of Headquarters or General Business Office of Publisher: Crain Communications, Inc., Rivergate Park and a new aquarium to residents of Stonebridge and to their heating and cooling business 700 W. St. Clair, Suite 310, Cleveland, OH 44113-1230. at Nautica. He even includes, with people on weekends visiting the to participate in the growth of 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: publisher: Brian Tucker, some justification, the planned, $287 remaining night spots. and the nearby Crain Communications Inc., 700 W. St. Clair, Suite 310, Cleveland OH 44113-1230; editor: Mark Dodosh, Crain Com- munications Inc., 700 W. St. Clair, Suite 310, Cleveland OH 44113-1230; managing editor: Scott Suttell, Crain Com- million Inner Belt Bridge and the So, Mr. Ecke is buying a new Tremont neighborhood. munications Inc., 700 W. St. Clair, Suite 310, Cleveland OH 44113-1230 $700 million casino pushed by property. He paid $210,000 to the 10. Owner (If the publication is owned by a corporation, give the name and address of the corporation immediate- Big landholders linger ly followed by the names and addresses of all stockholders owning or holding 1 percent or more of total amount of owner Dan estate of Rosemary Vinci for the stock. If not owned by a corporation, give the names and addresses of the individual owners. If owned by a part- Gilbert. Both those projects will triangular point of a building at nership or other unincorporated firm, give its name and address, as well as those of each individual owner. If the Another asset of the Flats is a publication is published by a nonprofit organization, give its name and address.) include at least facelifts to Flats 1700 Columbus. He sees the three- number of old, underused buildings Crain Communications Inc., 1155 Gratiot Avenue, Detroit, MI 48207-2997; K.E. Crain, 1155 Gratiot Avenue, Detroit, streets and maybe more. story building with 2,200-square- harking back almost to the Ohio MI 48207-2997; R.E. Crain, 711 Third Avenue, New York, NY 10017-4036. While Mr. Cimperman is a cheer- foot floors as ready for a variety of 11. Known Bondholders, Mortgagees and other Security Holders Owning or Holding 1 Percent or More of Total Canal era, according to Tom Amount of Bonds, Mortgages, or Other Securities: None. leader for projects in his ward, the uses, including perhaps a coffee Yablonsky, executive vice president 12. Tax Status: (For completion by nonprofit organizations authorized to mail at nonprofit rates.) The purpose, prospects he sees for the Flats are shop on the first floor and live-work function, and nonprofit status of this organization and the exempt status for federal income tax purposes: (Check of the Downtown Cleveland Part- One) shared by Mr. Halko and others. loft studios above. nership. A prime example is the ❑ Has Not Changed During Preceding 12 Months Its prospects helped convince Mr. At 66, Mr. Ecke has worked in the B&O Passenger Terminal on Canal ❑ Has changed During Preceding 12 Months (Publisher must submit explanation of change with this statement) th 13. Publication Name: Crain’s Cleveland Business Halko to move Invisia’s office into a Flats since starting to run the busi- Road, which dates from the 19 14. Issue Date for Circulation Data Below: September 27, 2010 building that in the days of the old ness at 16 for his mother after his century and could become a mixed- 15. Extent and Nature of Circulation No. Copies Flats had been the Cantina del Rio father died. And for all its changes, Average no. of copies of single issue use project oriented to the Towpath each issue during published nearest restaurant and later the 2020 Martini he has faith the Flats will rebound Trail and Ohio Canal Corridor, Mr. preceding 12 months to filing date Lounge & Café — names from the once more. A. Total No. Copies (Net Press Run) 20,465 20,848 Yablonsky said. Sherwin-Williams B. Paid Circulation (by mail and outside the mail) Flats past, when it was one of Cleve- “There is always some attraction Co. owns the structure, which is (1) Mailed Outside-County Mail Subscriptions Stated on PS Form 3541 land’s first urban entertainment here,” Mr. Ecke said. “No matter next to its research center. (Include paid distribution above nominal rate, advertiser’s proof districts. copies and exchange copies) 6,257 6,401 who you are, the water attracts you, Many observers, such as Mr. (2) Mailed In-County Paid Subscriptions stated on PS Form 3541 That era began to die before the even if it is eating in a restaurant Bredt, also expect at some point — (Include paid distribution above nominal rate, advertiser’s proof turn of the new century, and the and watching (ore) boats go by.” copies and exchange copies) 12,299 12,910 and perhaps sooner than later — to (3) Paid distribution Outside the Mails including Sales through Flats is mostly remembered for Charles Bredt, chairman of the see big things from two major Flats dealers and carriers, street vendors, counter street crime and underage drinking. Flats Oxbow Association and presi- sales, and other paid distribution outside USPS 179 181 property owners. (4) Paid distribution by other classes of mail through the USPS 0 0 Now, Mr. Cimperman said, the dent of retailer Northern Ohio Lumber Forest City Enterprises Inc. holds C. Total Paid and/or Requested Circulation area is evolving into a residential and Timber Co., also remains opti- at least 60 acres along Scranton (Sum of 15B(1), (2), (3) and (4)) 18,735 19,492 neighborhood. D. Free or Nominal Rate Distribution (by mail and outside the mail) mistic about the future of the Flats, Road and the Scranton Averell Trust (1) Free or Nominal Rate Outside-County Copies included Tom Newman, executive director as he has for years. holds at least 25 acres. Several Flats on PS form 3541 129 47 of the Flats Oxbow Association, the (2) Free or Nominal Rate In-County Copies included “It has just taken longer than we property owners and observers on PS form 3541 271 114 area’s development group, said expected,” Mr. Bredt said. “Reality have heard speculation that Forest (3) Free or Nominal Rate Copies mailed at other classes 2,500 people now live in the Flats, got in the way. There are many through the USPS 0 0 City, which owns Tower City Center (4) Free or Nominal Rate Distribution outside the mail many of them at the Stonebridge ideas (afoot) that have not been across the Cuyahoga from its Scranton (Carriers or other means) 155 3 Apartments and Condominiums (publicly) shared. There is a desire, peninsula holdings, might build a E. Total Free or Nominal Rate Distribution that cropped up in the last decade. (Sun of 15D (1), (2), (3) and (4)) 555 164 a willingness to turn things over to a bridge across the river to connect its F. Total Distribution The prospects of more residents neighborhood feel.” orphaned property to the casino (Sum of 15C and 15E) 19,290 19,656 and visitors have some longtime G. Copies not distributed 1,175 1,192 In May, brothers Tim and Todd that will rise behind Tower City. H. Total (Sum of 15F and G) 20,465 20,848 Flats business owners expanding West paid $110,000 for an old factory “I know that Forest City did not I.Percent Paid and/or Requested Circulation their horizons. building at 2341 Scranton Road and spend $2 million” for Scranton (15C/15F x 100) 97.12% 99.17% 16. Publication of Statement of Ownership printed in the 10/11/10 issue of this publication. Pumped up plan to move their Any Heating & Road land in the 1980s “to use it as 17. I certify that all information furnished on this form is true and complete. I understand that anyone who fur- Air Conditioning business there. a parking lot,” Mr. Ecke said. nishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil Jack Ecke, who owns Ecke’s Towing Tim West said he and has brother A Forest City spokesman would penalties). Service and a service station on bought the building because it was not comment on the company’s Brian Tucker, Publisher ■ 9-28-10 Columbus Road, said he has seen cheap — half what they paid for plans. 20101011-NEWS--21-NAT-CCI-CL_-- 10/8/2010 1:39 PM Page 1

OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

its own renewable energy standard, Besides, Mr. Randazzo said, the which requires the Buckeye State to loss of jobs at a single coal plant Wind: Ohio already seeing rising rates derive about 12.5% of its power affects employment more than the from renewable sources by 2023. operation of many wind turbines. continued from PAGE 3 industry. and capital expenditures from the It’s a goal Mr. Randazzo said is There is one way a national Ohio already supply the wind energy “Passage of an RES would defi- passage of a national energy stan- “hugely aggressive,” though it is a renewable energy standard could industry. Among them are Canton- nitely be beneficial for domestic dard.” lower percentage than is proposed benefit Ohio, though, even in the based steel and gear maker Timken manufacturers and the overall But many manufacturers that are by Sens. Bingaman and Brownback. eyes of Mr. Randazzo. If such a Co. and Cardinal Fastener in national employment,” Mr. Grabner large consumers of power aren’t Some Ohio electric users already federal law pre-empted the laws Bedford Heights, which produces wrote in an e-mail to Crain’s. thrilled with the legislation. have seen their rates go up by 4% in already in place at the state level, it “Presently, too many manufacturers areas where utilities have taken would put Ohio on a level playing special bolts that go into wind tur- … and thumbs down bines. are reluctant to invest in new man- steps to meet the state’s standard, field with other states, even those Cardinal Fastener CEO John ufacturing capacity without a clear, Sam Randazzo, general counsel Mr. Randazzo contends. that have not adopted their own Grabner said he’d love to see a consistent energy policy out of for the Industrial Energy Users-Ohio “Unfortunately, the discussion of standard. national renewable energy standard Washington. Specifically, with regards group in Columbus, said renewable this has disintegrated into a jobs “One of the problems that exists put in place because it would help to Cardinal Fastener, we would antic- standards raise electricity rates and discussion, but the net impact is presently is each state is acting as an his business, which is deriving ipate our volume increasing with a already have done so in Ohio. what you need to look at,” Mr Ran- island and there’s not a lot of coor- much of its growth from the wind resultant increase in employment Ohio is one of 24 states to adopt dazzo said. dination,” Mr. Randazzo said. ■

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Chair of the Business Administration Division. The Division Save 50-70% on 440.449.0700 Chair is expected to have a productive presence in the region ExecutiveCaterers.com and work effectively with area business leaders and members your lighting energy of the B-W Business Advisory Council. LYNDA NOWAK costs & get better Vice President WINTER A rich track record of working with corporations and their man- lighting agement leaders is necessary as well as an MBA or Ph.D. in Commercial Team Manager • Over 50K sq. ft? Business Administration/Management or related field. Multicul- CAR STORAGE turalism is highly valued at Baldwin-Wallace College and the (216) 529-2734 • Run multiple shifts? DOWNTOWN * LOW successful candidate will have a demonstrated track-record of [email protected] • Payback 12-24 months MONTHLY RATE working within diverse communities and embracing intercultur- • N/C Analysis alism from the broadest possible perspective. The Division 440-243-5500 Chair is a full-time appointment that reports to the Vice Presi- dent for Academic Affairs and Dean of the College. Salary and professorial rank are commensurate with qualifications. ATTENTION FLYNN Additional information about this position and the BUSINESS SERVICE OWNERS! ENVIRONMENTAL Business Administration Division can be found at 330-931-3905 For Assessments http://www.bw.edu/resources/hr/jobs and at www.ROI-Energy.com www.bw.edu/academics/bus/ Submit your business card to (800) 690-9409 promote your service and receive a www.flynnenvironmental.com Electronic applications are encouraged and may be submitted to [email protected] Applicants should submit a letter of appli- SUBSTANTIAL DISCOUNT For daily on-line cation, curriculum vita, statement of leadership philosophy, and off your ad price. updates, sign up @ the names and contact information of three current references to: To find out more, contact CrainsCleveland.com/Daily DON’T Dr. Mary Lou Higgerson Genny Donley at 216.771.5172 FORGET: Vice President for Academic Affairs and Dean of the College Baldwin-Wallace College SPORTS & Crain’s Cleveland Business 275 Eastland Road ENTERTAINMENT on-line @ Berea, OH 44017 CrainsCleveland.com The search committee will commence reviewing applications CAVS TICKETS For all the latest business October 15, 2010, and will continue until the position is filled. WANTED: All Regular Season games. news...online Your subscription to Center Court. Baldwin-Wallace College is an EEO/AA employer and educator. At B- ½ season $16k. W, we support and encourage diversity in a variety of forms. We value Crain’s Cleveland Business Sec 109, row 4, 1-4. and appreciate inclusive excellence in the classroom, within extracur- Incl. parking pass. ricular activities, and as we engage our community partners. Learn more at Diversity Affairs - http://www.bw.edu/quickfacts/diversity/ To sign up call toll-free at 1-888-909-9111 Call 216-409-8055 20101011-NEWS--22-NAT-CCI-CL_-- 10/8/2010 1:33 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 11-17, 2010

ECONOMIC ATTITUDES Survey: Uncertainty often stalls long-term investment How confident are you in Northeast Ohio’s economy? continued from PAGE 1 Strongsville’s Clark Reliance Corp., one I’m talking to, there’s a sort of economy to grow only slowly in the Deloitte’s Fiona Chambers, head of which makes instruments and controls quiet confidence going into 2011 that’s next few years, she said. Response Percentage the firm’s Cleveland tax practice used largely in the oil and gas indus- been missing the past couple of years.” Smaller companies are much the Very 3% who worked on the survey. tries in the U.S. and abroad, said Asia is similarly helping other same. Pick most any small machine Ms. Chambers explains that, in company chairman Matthew Figgie. large local companies, such as shop, plastics maker or stamping Somewhat 15.8 any economy, not all companies Sales at the private company Cleveland-based Cliffs Natural plant in Northeast Ohio and their experience the same economic declined in 2009, but not enough to Resources, which sells iron ore, view of the economy’s health is Not particularly 58.6 circumstances. cause the company to lose money. metallurgical coal and other resources largely determined by the indus- Not at all 22.6 Companies selling into high- Mr. Figgie also chairs Pepper Pike- used by steelmakers around the world. tries and geographies they serve. growth sectors like medical devices, based Figgie Capital, an investment “We’ve certainly come back from Smaller companies, however, are How confident are you that wind energy or certain automotive firm that puts money into stocks, the 2009 decline in our domestic less likely to have overseas plants or Northeast Ohio’s economy can supply chains are doing well. Those bonds, commodities and other business, but the international area subsidiaries that can fully take strengthen in the next five years? selling into still-struggling sectors, investments. His dual roles cause is where our business is growing,” advantage of overseas growth the such as construction, are limping. Mr. Figgie to look at the world said Cliffs CFO Laurie Brlas. “We way their larger counterparts do. Response Percentage Similarly, companies with signifi- through a broad lens, he said — are looking at a global economy cant sales in growing markets like and he sees things getting better. and the growth in Asia, particularly A taxing future Very 8.3% China say their recovery is more “I’m less concerned about a double- in China, is extremely strong and Another factor is still at play, said Somewhat 40.6 robust than companies more depen- dip recession today than I was back we expect China will continue to William Beaufait, a shareholder in dent upon U.S. sales. in the springtime,” Mr. Figgie said. grow,” she said. the Cleveland accounting firm Mal- Not particularly 36.1 Both factors have helped “From everything I see and every- However, Cliffs expects the U.S. oney + Novotny who specializes in Not at all 15

working with manufacturers: There still is too much uncertainty about the future economy and governmental policies. Companies have downsized and streamlined their way to increased profits — but that doesn’t make them optimists, he said. “You’ve got a lot of businesses now saying, ‘I’m making good mon- ey now, but I don’t know if I want to invest long-term because I don’t know what’s going to happen.’” Mr. Beaufait cited uncertainty over future tax rates and the ability to quickly depreciate capital invest- ments as two chief client concerns. The source of much of that uncer- tainty is the federal government’s debt, said Deloitte’s Ms. Chambers, and her survey results show near universal agreement that the nation needs to reign in its borrowing and spending. When Deloitte asked busi- nesses here about the federal budget deficit, 86.5% said they were either “alarmed” or “very concerned,” and only 1.5% said they were “not partic- ularly concerned.” Ms. Chambers said companies are concerned not only that higher tax rates might eat into their profits and the capital they have to invest, but also that the tax laws are becoming increasingly complicated and diffi- cult to plan around. “Companies are being forced to assign more resources to (tax com- pliance and planning),” she said. Businesses worry that things like a so-called value-added tax on goods and services throughout the supply chain or a cap-and-trade program for energy will drive up their costs, Ms. Chambers said. In Deloitte’s survey, 42.9% of respondents said they were most concerned about a possible value-added tax, while 14.3% wor- ried about cap and trade the most. Better times ahead? If there’s a bright spot, it’s that about half of those surveyed think the local economy will improve over the next five years, said Craig Donnan, managing partner of Deloitte’s Cleve- land office. The reform of Cuyahoga County’s government, efforts to grow medical device manufacturing and other local efforts are winning some support among businesses, he said. Asked how confident they were that Northeast Ohio’s economy will improve in five years, 48.9% said they were very or somewhat confi- dent, while 51.1% were not particu- larly confident or not at all confident. Not stellar numbers, but they at least show more faith in the future than in the present, Mr. Donnan said. “Five years out, they’re more con- fident, which we view as a very posi- tive thing,” he said. ■ 20101011-NEWS--23-NAT-CCI-CL_-- 10/8/2010 1:41 PM Page 1

OCTOBER 11-17, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS OCTOBER 4 - 10 Rokakis makes move With these gift cards, it’s Magnet looks to create to the movies the thoughts that count new supply chain links The big story: The state of Ohio is ready to ■ Cuyahoga County Treasurer Jim Rokakis ■ A handful of $10 gift cards is all it takes for ■ The Cleveland-based manufacturing advo- sign off on a $42 million borrowing deal that would will be out of a job come January, but it a company to build a culture of innovation, cacy and consulting group Magnet has been finance the construction of a 77,000-square-foot looks like he’s already planning a new according to Renovo Neural president awarded a $285,000 contract by the National research building at the Northeastern Ohio career. Satish Medicetty. Institute of Standards Universities Colleges of Medicine and Pharmacy He’s one of the founders and executive The spinoff two months and Technology. in Rootstown. The bonds producer of HomeTown Productions, a film ago started challenging its employees to The money will go to would be repaid with production team he’s started with local come up with ways to make Renovo Neural fund a one-year pilot existing revenue from tuition screenwriter John Vourlis. The pair is working a better company and a better place to work. project that is to assist and student fees, with no added on a film called “Garden Each week, the person who submits the best small manufacturers who costs passed along to students. Avenue,” described on the idea gets a $10 gift card and a nomination hope to sell into the Officials say the construction film’s web site, www.Garden for the company’s new Innovator of the Year supply chains for bio- project would bring 1,000 temporary AvenueTheMovie.com, as the award — which comes with a paid day off. mass, electric vehicles and jobs over the next 18 months, and 60 “funny, inspired” story of a Thanks to the program, the company now Bagley other advanced energy permanent research faculty and staff would be “young man’s struggle against has a few community umbrellas for rainy segments, Magnet reports. hired to run the facility. power and corruption, cyni- days, and internal meetings automatically Under the contract, Magnet will work cism and self-doubt, racism, are rescheduled if a key person is more than with the technology-oriented economic Micro managing: Nordson Corp. agreed to intolerance and ignorance.” 15 minutes late. development nonprofit, NorTech, to train buy Micromedics Inc., a company in St. Paul, It’s set in 1977 on Cleveland’s West Funny that a company developing assays manufacturing companies to work in the Minn., that makes devices for applying and Side. for drug developers targeting neurological new industries. dispensing biomaterials that control bleeding That young man, Jimmy Petrakis, the son diseases, as well as drugs of its own, would “Our goal is to establish Northeast Ohio and heal wounds. Nordson did not disclose of Greek immigrants, decides at age 22 to try be concerned with such ordinary ideas. as a regional model for helping manufacturers terms of the deal, which is expected to close in to unseat the entrenched but callous and The program, however, has been a great transition from slow growth markets to new, about 30 days. The acquired business will be uncaring ward councilman and, presum- team-building activity, Mr. Medicetty said high-demand markets with stronger growth integrated into Westlake-based Nordson’s ably, to transform Cleveland. Sept. 28 during a short presentation at potential in emerging technology sectors, Advanced Technology Systems segment. If that story sounds at all familiar to BioOhio’s annual conference in Indepen- such as advanced energy” NorTech president anyone who was in Cleveland at the time, it dence. and CEO Rebecca O. Bagley said in announcing Family ties: University Hospitals is naming a should. It’s a replay of Mr. Rokakis’ first run The program also has encouraged Renovo the contract with Magnet CEO Dan Berry. three-story outpatient building at the health for . Neural’s six employees to be on the lookout “Ohio ranks third in the U.S. in manufac- system’s new Ahuja Medical Center in Beachwood Not a big-budget film, HomeTown for good ideas. You never know when one turing production output and manufacturing after a member of a family that donated a signif- Productions is using a web site called Kick- might emerge: The company is studying employment,” she said. “Working with Magnet, icant amount of money to UH’s $1.2 billion starter.com to raise money. According to the feasibility of providing a new service we can help our region’s manufacturers Vision 2010 renovation and construction that web site, HomeTown Productions has because of one employee’s suggestion. leverage their existing strengths and diver- project. Eleanore and Robert Risman and their more than $13,000 from 33 backers, exceeding “I think it has a significant impact on sify their business to capture more global daughter Kathy donated the money because of the company’s goal of raising $12,500 it what we do on a day-to-day basis,” he said. market opportunities in advanced energy.” the culture of high-quality, personalized health needs to start production. — Jay Miller — Chuck Soder — Dan Shingler care that University Hospitals and its physicians offer patients, according to a statement from Mr. Risman. The dollar amount was not disclosed. WHAT’S NEW BEST OF THE BLOGS Carbon aided: A team of Kent State University professors received a grant exceeding $1 million Excerpts from blog entries gressive Corp., among the wealthy Democ- to analyze how micro-organisms known as on CrainsCleveland.com. ratic patrons not enamored with the party’s “cheaters” affect the carbon cycle. The team will direction in this election cycle. use the money to study how the microbes — Big-company profits suggest Mr. Lewis and George Soros, who each which feed on small chemicals that already have the recession is long gone gave more than $20 million to Democratic- been digested by other microbes — affect the oriented groups in the 2004 election, appear process of decomposition and the effect they ■ The government says the recession is to be holding back so far this year, according have on whether carbon is stored or released over, even though no one really believes to The New York Times. into the atmosphere. Many believe excess carbon that. But an Oct. 4 Wall Street Journal story Jennifer Frutchy, who advises Mr. Lewis in the atmosphere contributes to global warming. might convince you good times are here on his philanthropy, told The Times that he again — at least if you run a large company is focused on “building progressive infra- Blowing into the Windy City: Accounting COMPANY: GE Lighting, Cleveland such as Parker Hannifin Corp., the maker of structure and marijuana reform.” firm SS&G said it merged with Chicago-based motion and control technologies and systems. “That’s just where his head is right now,” Ahlbeck & Co., adding 22 staff members to its PRODUCT: Energy-efficient lighting An analysis by The Journal found companies Ms. Frutchy said. roster of more than 400 employees. SS&G, which system in the Standard & Poor’s 500 stock index has offices in Cleveland, Akron, Cincinnati, “posted second-quarter profits of $189 When the idea’s good, Columbus and Erlanger, Ky., said the deal creates Engineers at GE Lighting teamed up with billion, up 38% from a year earlier and their your age is irrelevant a new presence for the firm in the Chicago sixth-highest quarterly total ever, without their counterparts at California-based Janmar ■ market, which will help expand what it called its Lighting to create a lighting system for the adjustment for inflation,” the newspaper Here’s something to give you even more “already strong” base of Illinois clients. Tacoma Art Museum in Washington State reported. For all U.S. companies, The Journal faith in Cleveland’s entrepreneurial class. that cuts system energy use by 85%, uses said, “The Commerce Depart- BusinessWeek.com is running Streaking: RPM International Inc. increased nearly 20% fewer fixtures and raises light levels ment estimates second-quarter an online contest to identify the its quarterly dividend by 2.4%, to 21 cents per 35%. after-tax profits rose to an annual country’s most promising entre- share, marking the 37th consecutive year the The 50,000-square-foot, 3,500-piece art rate of $1.208 trillion, up 3.9% preneurs age 25 or under. From dividend has been increased. The Medina-based museum previously consumed an estimated from the first quarter and up hundreds of candidates, the producer of coatings and sealants said it’s one of 373,000 kWh annually. The new system 26.5% from a year earlier.” magazine’s web site came up just 48 publicly traded companies — of a total of features a GE ceramic metal halide lamp and The profit rebound is the with a list of 25 finalists, two of about 19,000 — in the United States to have Janmar Lighting fixture configuration using result of aggressive cost-cutting whom are in Cleveland. increased its dividend every year during those 37 just 23 watts — instead of an antiquated, to cope with lower revenue and One of the companies, Citizen- years. 150-watt incandescent system — that is an uncertain outlook. Groove, produces software for estimated to consume a total of 56,000 kWh At Parker, for instance, “profit digitizing music school applica- This and that: RSB Spine LLC received a $1.5 per year. The difference is expected to help more than quadrupled from a tions. It’s the brainchild of four friends from Case Western Re- million investment that the Cleveland company the museum save about $10,000 per year, year earlier to $222.2 million in JASON MILLER serve University. plans to use to increase production of its spinal GE Lighting estimates. the company’s fiscal quarter ended Democrats: not high implant products. The company wants to boost A second company with local The museum’s new lighting system also June 30,” The Journal said. “But on Peter B. Lewis’ list its inventory of products to keep pace with reduces the fixture count to 505 from 621, sales grew only 25% to $2.8 ties is LifeServe Innovations, rising demand. … Progressive Corp., an aggressive which helps to eliminate ceiling clutter and billion.” which is developing a new way to open pa- marketer in the competitive insurance industry, reduces maintenance. Parker now is stretching its work force by tients’ airways in emergency situations such named a new chief marketing officer. Jeff Charney, “The net effect of this change is greater using part-timers and adding weekend shifts. as might occur in combat zones. 51, comes to Mayfield Village-based Progressive intensity, clarity and visual focus for each It intends to continue doing so for the fore- “The device is intended to help emer- from insurance company Aflac, where he was piece of art on display,” says Jason Raak, a seeable future, CEO Donald Washkewicz said. gency medical providers with minimal senior vice president and chief marketing officer. Cleveland-based marketing manager with GE training to deliver oxygen to patients,” ac- Lighting. His heart’s with Democrats, cording to the web site. To keep up with local business news as it For information, visit www.BetterMuseum but his head is elsewhere LifeServe is based in Bethlehem, Pa., and happens, visit www.CrainsCleveland.com. Lighting.com. Cleveland, where co-founder Rick Arlow, ■ Count Peter B. Lewis, chairman of Pro- 22, is a medical student at Case. 20101011-NEWS--24-NAT-CCI-CL_-- 10/8/2010 1:34 PM Page 1