20120402-NEWS--1-NAT-CCI-CL_-- 3/30/2012 9:36 AM Page 1

$2.00/APRIL 2 - 8, 2012

Bank files Expecting foreclosure shortage, on Tower insurers at Erieview Lawsuit includes garage, tout jobs but not adjacent Galleria Demand likely will rise, By STAN BULLARD [email protected] so sales pitches intensify

After nearly a decade of trying to By TIMOTHY MAGAW make a go of the 40-story Tower at [email protected] Erieview, an investor group led by co-owner Werner Minshall is in danger JASON David Hazen isn’t surprised young of losing the landmark property in MILLER professionals aren’t flocking to the insur- downtown Cleveland to its lender. PHOTOS ance industry. After all, he said, it isn’t The office building and its 400-car perceived as the most riveting career. underground parking garage are the But there are jobs to be had in the busi- subject of a foreclosure action filed ness — and more likely are on the way. March 23 by U.S. Bank in Cuyahoga SPECIAL REPORT “When you were growing up and your County Common Pleas Court. The uncle asked what you wanted to do for a lawsuit against Mr. Minshall’s Erieview living, you probably said you wanted to Tower & Parking LLC looks to satisfy be a teacher, fireman or a doctor,” said a $44 million mortgage issued by the REMAKING Mr. Hazen, vice president for commercial bank. insurance lines at Huntington Insurance However, the attached, glass- TH in Salem. “The last thing you would have topped Galleria, 1301 E. Ninth St., is WEST 25 AND said is that you wanted to be an insurance exempt from the foreclosure action agent or in the insurance business.” as it was financed separately and Mr. That situation creates a problem, Minshall controls it through a different industry insiders say, as the state’s insur- company. THE MARKET ance work force by 2016 is expected to Mr. Minshall said last Tuesday, grow by 7.1% due to heightened demand, March 27, he was surprised the bank bringing along 16,900 new jobs, according filed to foreclose. The real estate DISTRICT to market research from Kent State Uni- owner based in Bethesda, Md., said versity. Moreover, other studies suggest as he hopes to retain the asset. much as 50% of the insurance industry’s “We’ve been trying to work it out ◆ Driving forces current work force will reach retirement for more than a year. They must age by 2016. have gotten tired of talking to me,” ◆ Financial needs As such, local insurance companies and Mr. Minshall said. “We’re making a brokerage firms are looking to expand lot of progress (with the complex). ◆ Residential growth in-house training programs to lure young It’s not been an easy deal, but there employees, partner with local colleges to are reasons for them to back off and ◆ Full coverage: PAGES 11-18 beef up the talent pool and, perhaps most let me continue it.” He declined to importantly, better sell their industry as a See ERIEVIEW Page 21 www.CrainsCleveland.com/W25th See INSURERS Page 20 Next for Cedar Fair CEO: Take record years to greater heights

By TIMOTHY MAGAW of the challenges facing the amusement including Cedar Point in Sandusky. Ouimet’s paramount tasks during his [email protected] park industry, but he said the company’s “Because we are such an extraordi- first full season with the company since largest hurdle is what he’s characterized nary value, we tend to win that battle, becoming Cedar Fair’s president last Matt Ouimet’s biggest challenge these as a “time poverty” issue. but I think about it a lot,” Mr. Ouimet summer. He stepped into the CEO role days is tearing people away from their The former longtime Disney executive said in an interview last week with Jan. 3 after longtime executive Dick jam-packed schedules so he can scare admitted spending a lot of time thinking Crain’s Cleveland Business. “If you’re off Kinzel retired. them to death on a 400-foot-tall roller about how to convince consumers to doing something else besides coming This year, the company is rolling out a coaster. spend their time and hard-earned cash here in July, I call you a ‘why not?’” new marketing campaign, an upgraded OK — maybe the new Cedar Fair LP at Cedar Fair’s 11 amusement parks and Getting those so-called “why nots” online platform to sell tickets and, in CEO wasn’t that dramatic in his assessment six water parks throughout the country, into the parks will be one of Mr. See HEIGHTS Page 19 Ouimet

INSIDE 14 7 Stow golf agent R.J. Nemer struck while the time — Tiger’s time, specifically — was right ■ Page 4 NEWSPAPER Entire contents © 2012 ■ 74470 83781 PLUS: RENTAL RATES RISE AGILE SOFTWARE by Crain Communications Inc. DEVELOPMENT FIRM ON THE MOVE ■ & MORE Vol. 33, No. 14 0 20120402-NEWS--2-NAT-CCI-CL_-- 3/29/2012 1:36 PM Page 1

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APRIL 2 - 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Rents to hit record, driven by occupancy Rates expected to climb 3%, but some owners can’t raise prices BEHIND THE RENTAL DATA Multifamily rental rates are back on the upswing, according to data from Marcus & By STAN BULLARD expected to rise 3% to $725 a month investments at Marcus & Millichap’s Millichap Research Services and Reis. The numbers: [email protected] in 2012 from $704 in 2011. Independence office, said he and Monthly asking rents, or adver- his colleagues specializing in apart- Year Asking rent Percentage change Northeast Ohio apartment owners tised rates before concessions such ment sales hear evidence of the rent have entered History City. as a month of free tenancy, are increases from owners on a regular 2012 $756 4.7% A just-updated forecast by the expected to increase 2.6% this year basis. They also see it in financial 2010 722 -2.3 Marcus & Millichap real estate to $756 from $737 last year. The data they gather to list and evaluate brokerage estimates multifamily spread between asking and effective for-sale apartment buildings. 2008 739 5.4 rents in the Cleveland market will hit rents shows that apartment owners “Savvy owners are taking advan- a record this year. Average effective still need to market competitively tage of occupancies and are raising 2006 701 3.1 rents — actual rent payments land- even as regional occupancy sits at rents as leases come up for renewal 2004 680 1.5 lords receive after concessions and 94%. and for new tenants,” Mr. Barron discounts in negotiations — are Michael Barron, a vice president of See RENTS Page 19 2002 670 3.6 (over 2000)

INSIGHT Community banks seek investor infusion Aging demographics force institutions to recruit shareholders

By MICHELLE PARK [email protected]

Visible through the glass walls of president and CEO Ed McKeon’s office is a big banner that tells all those who come inside Western Reserve Bank in Medina, “You can become a shareholder in your bank.” JANET CENTURY The banner was LeanDog CEO Jon Stahl has tried to encourage a culture of creative thinking. “Why do I have to work in a cubicle? Why do I have to wear a tie?,” he asks. hung three months ago and is a 7-foot- By CHUCK SODER companies to use agile techniques McKeon tall sign of the [email protected] — was supposed to top out at 20 lengths to which community banks in Northeast Ohio retty soon LeanDog might employees, Mr. Stahl said. are going to interest their customers “Now we’re at 50 and probably in buying stock in the institutions AGILITY have to change its name where they bank. Their primary to BigDog. headed to 100,” he said, adding that goal is to line up new investors to replace longtime stockholders, some The software company the company has 25 positions open. To accommodate that growth, the of whom want to liquidate their ABILITY Pbest known for working out of a barge holdings. on Lake Erie more than doubled its company is expanding its offices. Both Western Reserve and Cortland Cleveland software developer Mr. Stahl and Jim Hickey, co- Savings and Banking Co., which sales and the size of its staff in 2011. operates in five counties, including LeanDog grows, renovates That wasn’t the plan, according founder of marketing firm Arras Ashtabula, Geauga and Portage, have trained their staffs to educate to CEO Jon Stahl. LeanDog — Keathley, about a month ago final- floating headquarters ized a deal to purchase the barge customers that they can invest in which uses “agile” methods to their hometown banks. Cortland develop software and teaches other See LEANDOG Page 19 has gone so far as to charge each employee with generating leads by asking clients directly about investing in the bank and giving information THE WEEK IN QUOTES forms to those who seem interested See INVESTOR Page 20 “We’ve been trying to “If I bought it, I would “Nobody involved “As a corridor, Lorain work it out for more be stuck in a job I with this is tired. … has not functioned REGULAR FEATURES than a year.They must hated. I was looking It’s 7 a.m. in Ohio well for a long time. Big Issue...... 8 have gotten tired of out my office window City, and there’s still a … A more vibrant Classified...... 22 talking. ...We’re mak- one day and said full day ahead.” Lorain Avenue Editorial...... 8 ing a lot of progress there has to be more — Cleveland City Councilman would bring people From the Publisher...... 8 Joe Cimperman. Page 11 Going Places ...... 10 (with the complex).” to my life than this.” together.” Letter ...... 9 — Werner Minshall, co-owner, — R.J. Nemer, founder, Icon — Eric Wobser, executive director Personal View ...... 9 Tower at Erieview. Page One Sports Management in Stow. of Ohio City Inc. Page 11 Page 4 20120402-NEWS--4-NAT-CCI-CL_-- 3/30/2012 9:36 AM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 2 - 8, 2012 Timing right for Stow golf agency Icon steadily builds roster of pros, clients in corporate world

By JOEL HAMMOND [email protected]

Cuyahoga Falls and Stow native R.J. Nemer admits he’s a horrible golfer. But Mr. Nemer has carved out quite a nice niche for himself in representing those who are good at the sport. The founder of Icon Sports Management in Stow got started in 1997 as the circus surrounding Tiger Woods’ rise was perhaps at its peak: Mr. Woods, who’d won two lesser- JOE CASTRO/EPA known tournaments in 1996, blew R.J. Nemer’s Icon Sports Management has paired PGA Tour pro Ian Poulter with away the field at fabled Augusta Mutual of Omaha. National Golf Club to win the Masters by shooting a four-day total of 18- tour history — Mr. Woods ownership interests in pri- under, 12 shots ahead of second-place is one of the other five — to vate jets; insurer Mutual Tom Kite. earn his playing card of Omaha; candymaker Later that month, at the Jack without attending the PGA’s Lemonheads, and Waste Nicklaus-designed Muirfield Country Qualifying School. He did Management. Club in Dublin, a suburb of Columbus, so by finishing 116th on the For its corporate cus- Mr. Nemer and his father, Bob, saw tour’s money list in 2011 by tomers, Icon develops mar- a change happening at the Memorial playing under sponsors’ keting strategies within pro Tournament. exemptions, which give a Nemer golf, such as player spon- “We’re looking in the gallery, and tournament sponsor the sorships — think Mr. Poul- see all kinds of different races and discretion to admit players into an ter’s Sunday polo with Mutual of ethnicities watching him,” Mr. Nemer event’s field. Players in the tour Omaha’s logo on it — or sets up said of Mr. Woods at the Memorial. money list’s top 125 automatically customer entertainment, such as “And you look at Tiger, and he looks earn their tour cards. pro-am events and golf clinics. different athletically than everyone At the start, though, Icon needed a Waste Management, in another else. I thought, ‘Maybe golf is the break. Mr. Nemer said he got it when example, pays for naming rights to next big thing.’” he met someone who introduced the Waste Management Phoenix Open, At about the same time, Mr. Nemer him to someone who had played held each February. It features one was at a career crossroads. He’d earned collegiately for Duke University; that of the PGA Tour’s most-celebrated his bachelor’s and law degrees from former Blue Devil knew a Lancaster, holes, the raucous 16th at TPC the University of Akron, and was Ohio, native named Joe Ogilvie, who Scottsdale where more than 20,000 working in Summit County Probate had just earned his Nike Tour card. fans whoop it up in grandstands Court,. Yet he was unfulfilled. Every (The Nike Tour is the predecessor of that surround the par 3. Monday, he said, he’d wish it was the current Nationwide Tour, a kind John Hildenbiddle, the senior vice Friday. He had money saved to buy of minor league for pro golf.) president of brand management and his first house, but hesitated. Mr. Ogilvie gave Mr. Nemer six public relations at Mutual of Omaha, “If I bought it, I would be stuck in months. Today, they’re still paired, said the company has worked with a job I hated. I was looking out my with Mr. Ogilvie winning $10 million Icon since 2003, when it decided to office window one day and said in his career thanks in part to one venture into golf marketing. He called there has to be more to my life than victory and 26 top-10 finishes. the PGA Tour for a list of agents, and The Ohio Energy Challenge this,” he said. Mr. Nemer has stories like that for said he quickly found that Mr. Sports giant IMG still was head- everyone: For Mr. Poulter, perhaps Nemer was the best of the bunch. quartered in Cleveland at the time, his best-known client who has his Icon’s players, Mr. Hildenbiddle We have the team for that. and he spoke with the company own clothing line and a reputation said, were amenable to partnerships about coming aboard. But he decided for being a showman, Mr. Nemer with corporations that involved against joining a big company, and was meeting someone for dinner at much more than simply putting the Energy development in Ohio is on the fast as a 30th birthday present to himself, the U.S. Open a few years back company’s logo on their shirt, track. Our legal team includes diverse he signed a six-month lease on an when he saw two caddies talking. though that is part of the arrange- specialists who have been at the forefront office in Akron and founded Icon. One was Mr. Poulter’s, and after ment. Mutual of Omaha, then, hosts of the growing energy industry in our state. The thinking: The legal field was in striking up a conversation, Mr. players at small events with its cus- good shape at the time, so if his plan Nemer learned that the golfer was tomers, such as outings and clinics. The stakes are high. We have a high-energy went awry, he always could rejoin a transitioning to the United States In addition, the company brings group that is focused on law firm or practice in another area. full time from the United Kingdom. all 17 of the pro golfers it sponsors providing insight for your “I actually thought, ‘How hard can Mr. Nemer connected with Mr. through Icon to Omaha for the energy challenges and this be?’ In retrospect,” he said, “I ask Poulter’s longtime manager in Eng- “Mutual of Omaha Showdown,” with foresight for the issues myself, ‘What were you thinking?’” land and became his agent in the those players grouped randomly on the horizon. States. with about 60 of Mutual’s customers On the roster for the pro-am event. Mutual benefit Icon now employs 12 and counts “Our players are very interested 10 PGA Tour members as clients. In addition to player representation, in integrating with customers at Among them are popular English- Icon also counts among its clients outside events, outside of the time man Ian Poulter and rising stars companies such as Kent-based they spend attempting to win tourna- Kevin Streelman and Bud Cauley; Davey Tree Expert Co.; Columbus- ments,” Mr. Hildenbiddle said. “That’s the latter is only the sixth player in based NetJets, a seller of fractional where we see the most value.” ■

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Register for free e-mail alerts and ■ Daily headlines: A collection of SIGN UP NOW AT: receive: Crain’s-produced news and blog CrainsCleveland.com/register ■ The Morning Roundup: The day’s items from the day news from Ohio’s daily papers ■ Small Business Report: A ■ Crain’s on Twitter: McDonald Hopkins LLC ■ Breaking news alerts weekly guide to small business news @CrainsCleveland 600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 Carl J. Grassi Shawn M. Riley Volume 33, Number 14 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of President Cleveland Managing Member 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 © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824- 9373. mcdonaldhopkins.com REPRINT INFORMATION: 800-290-5460 Ext. 136 20120402-NEWS--5-NAT-CCI-CL_-- 3/30/2012 2:07 PM Page 1 20120402-NEWS--6-NAT-CCI-CL_-- 3/30/2012 10:19 AM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 2 - 8, 2012 With production back in U.S., Suarez turns up the heat on exports

By DAN SHINGLER products.) total production costs between the company had more than 400 said she didn’t think the company [email protected] Skeptics thought U.S. workers United States and China is closing employees assembling, testing and would have trouble exporting its wouldn’t work as hard as their even faster, Boston Consulting Group packing its heaters for shipping. But product, especially if it can sell A year after it pulled the trigger Chinese counterparts, but Suarez said. when the winter turned warm, the them in Japan, where Suarez said it on the decision to “reshore” its man- found the opposite to be true, said usual spring slowdown came quicker already has orders waiting. ufacturing operations by moving operations manager Hope Paolini. Glut avoided, but not layoffs than normal. “Japan is a very tough market to them to North Canton from China, Many of the workers are new immi- Wages aside, producing its prod- Today, only about 125 workers get into, so if they’ve done that, Suarez Manufacturing Industries grants, and a visitor might hear not uct here made Suarez faster on its are still at the company. they’re doing very well already,” Ms. says it avoided a big inventory only Spanish, but also French and feet, which allowed it to react “It’s painful and we’d really like Whiney said. problem thanks to the move. German spoken on the company’s quickly to a surge in demand for its to avoid that in the future,” Ms. Now the maker of high-end assembly line. heaters last fall, Mr. Giorgio said. It Paolini said. ‘Made in U.S.A.’ still sells EdenPure portable heaters needs to The company pays workers at also avoided a big mistake over the The southern hemisphere also is export what it makes here in order least $9 an hour. That’s more than a past winter, Mr. Giorgio said, because It’s always winter somewhere a tough market for some products to increase its geographic reach Chinese worker makes, but the the company normally would have It has avoided some of the pain because its populations generally into the southern hemisphere and company saves money by not trans- ordered its heaters from China by hiring employees who have other are poorer than those of North thereby blunt the wild swings that porting its products from China and months in advance but was able to jobs that are seasonal as well. For America or Europe. EdenPure’s occur in its sales and production by reducing its reaction time when reduce its output in North Canton example, Ms. Paolini said the com- expensive heaters — they cost cycles. it sees changing market conditions. in light of the mild winter in much pany employs a group of roofers, between $200 and $400 in the United “In the beginning, no one believed Besides, Suarez found its labor cost of the country. because they are busy with their States — might appeal to only a we were going to do it,” said Michael advantage in China already was “While we do have some inventory, roofing jobs in the warmer months small segment of buyers. But if the Giorgio, Suarez general manager shrinking, Mr. Giorgio said. if we would have purchased for a but are looking for work when the company positions itself correctly and chief financial officer, of bringing A study on reshoring — the normal winter from China, we weather turns cold and Suarez with retailers that reach those high- production back to the United process of bringing foreign produc- would have a glut of heaters,” Ms. ramps up its EdenPure production. end buyers, it still can find a market States. tion backed to the United States — Paolini said. But, long term, the company for its heaters, Ms. Whiney said. But not only did Suarez move released March 22 by the Chicago Using the company’s newfound hopes to broaden its geographic There might even be an advantage 100% of the final assembly work for office of Boston Consulting Group ability to change output quickly reach, said Ms. Paolini, who noted, in this respect, because EdenPure its heaters to North Canton, it also confirms Suarez’s experience. isn’t without its downside, though, “It’s always winter somewhere.” heaters are made in the United sourced all but one of the product’s Ten years ago, the average U.S. Ms. Paolini acknowledged. That means selling into places States. Foreign buyers often still put 123 parts from U.S. manufacturers worker made about 25 times what The company’s product is so such as South America or Australia, a premium on goods made in the in a process that took three years of his or her Chinese counterpart was seasonal, she said, that its need for where it’s winter when it’s summer United States, said Boston Consulting planning and ultimately involved paid, compared with only about 10 employees swings rapidly. Last in the northern hemisphere. The senior partner Hal Sirkin, a lead 30 suppliers. (If you’re curious, it times as much today, the report December, when Suarez still hoped company already is working on author on his firm’s recent report never did find a U.S. maker of lithium found. When productivity gains are for a strong sales season in its prin- exporting its product: On March 20, it on reshoring. batteries that would work in its considered, the gap in terms of cipal market of North America, the was cleared by Japan to sell its heaters “We’ve seen this, particularly in there after they were approved for the developing world, where there safety. is a premium for (U.S. products) The southern hemisphere might versus domestic manufacturing. have fewer opportunities, but does We’ve seen as high as 20%, but on have some, said Sue Whitney, director luxury goods it can be even higher,” of the Cleveland office for the U.S. Mr. Sirkin said. Commercial Services, which helps In the meantime, Suarez is working U.S. companies sell products abroad. on other ways to take some of the For instance, Brazil — South seasonality out of its business. America’s largest market — does The company is not ready to not have a free trade agreement disclose them yet, but Mr. Giorgio with the United States, so exporting said Suarez has other products it Reserve Your Spot Today: to that country is difficult, Ms. hopes to bring to market soon. Like Whitney said. However, the United its heaters, they’ll be in-home devices States does have agreements in aimed at improving home comfort www.CrainsCleveland.com/Counsel place that make it easy to export to and convenience, he said. nations such as Chile and Australia. But they won’t, he noted, require 8FEOFTEBZ
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APRIL 2 - 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Fedeli urges LNB to repay TARP investment

By MICHELLE PARK ernment, given the “dis- you, our shareholders. We are taking invest by himself or put together an 700 W. St. Clair Ave., Suite 310, [email protected] cussion in the media lately a measured and analytic approach investor group, he said. Cleveland, OH 44113-1230 regarding TARP and TARP to our review of alternatives.” “What I’m saying is I will help Phone: (216) 522-1383 Although the top execu- repayment.” Mr. Fedeli, president of The Fedeli them solve this issue of TARP,” Mr. Fax: (216) 694-4264 tive at LNB Bancorp sees Under the Troubled Group, an Independence business Fedeli said. “My concern is if you www.crainscleveland.com “no reason to rush” to Asset Relief Program, the insurance brokerage, said he respect- wait too long, you will be competing Publisher/editorial director: action to repay the U.S. Treasury invested in hun- fully disagrees. The anticipated rate with hundreds of banks that have Brian D. Tucker ([email protected]) Treasury’s investment in dreds of banks beginning increase is an 80% hike, he noted. the same issue (and are) looking for Editor: the company, activist share- Fedeli in 2008. While there’s no “Anytime I have a cost that capital.” Mark Dodosh ([email protected]) holder Umberto P. Fedeli deadline for repayment, increases 80%, to me, that’s some- Mr. Fedeli hesitated to say how Managing editor: wants to discuss making an invest- the dividend, or interest, banks pay thing that needs to be treated with much the investment could be or Scott Suttell ([email protected]) Sections editor: ment that would compel the bank on the money increases to 9% from urgency,” he said. what form it might take, but Mr. Amy Ann Stoessel ([email protected]) to repay sooner than later — prefer- 5% after five years. For LNB, which Mr. Fedeli owns more than an Klimas noted in his letter that Mr. Assistant editor: ably this year. received $25.2 million, that rate is 8% stake in LNB. He recently wrote Fedeli has suggested verbally that it Joel Hammond ([email protected]) Daniel E. Klimas, president and set to increase at the end of 2013. a letter to bank leadership, expressing would be in the form of convertible Sports CEO of LNB, the parent company of Speaking to the impending a desire to provide capital, Mr. Klimas preferred shares. Mr. Fedeli, though, Senior reporter: Lorain National Bank, sent a letter increase, Mr. Klimas wrote, “This is noted in his letter. said he’s flexible on terms. Stan Bullard ([email protected]) to shareholders March 23. He wrote no reason to rush into a transaction What Mr. Fedeli would like to do, Mr. Klimas declined to comment Real estate and construction Reporters: it to update them about the bank’s that could be detrimental in the given that he can access certain beyond his letter about Mr. Fedeli’s Jay Miller ([email protected]) steps to eventually repay the gov- long term to our institution and to financials to do his due diligence, is desire to invest. ■ 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 director: Lori Grim ([email protected]) Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events coordinator: Jessica Snyder ([email protected]) Advertising sales manager: Nicole Mastrangelo ([email protected]) Senior account executive: Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Office coordinator: Toni Coleman ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Audience development manager: Erin Miller ([email protected]) 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

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 2 - 8, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION It’s a gas ov. John Kasich and the Ohio Oil and Gas Association hold opposing views of just how heavily the state should tax energy companies that want to unlock the oil and Gnatural gas that sit within Ohio’s shale fields. Achieving a happy medium will be important if the state is to tap the full economic potential of the natural resources that lie beneath hundreds of thousands of acres in the eastern half of Ohio. The association formally made it known last week that it’s against raising the severance tax — the tax FROM THE PUBLISHER assessed against oil and gas producers — as proposed recently by Gov. Kasich in his 10-point energy plan. The group engaged in a bit of saber-rattling in the Health care debate causes confusion process, hinting that development of an energy industry in Ohio’s Utica shale region might stop ou could almost imagine the but forcing Americans to buy something tants, government officials or others, before it really gets started if taxes are raised. simultaneous jubilation and that they may not want or need has can’t sit by and wait. They’ve been “The specter of a tax increase has induced a sense exasperation across the land hackled conservatives the most. The planning for this for a long time and of uncertainty among oil and gas companies which last week as people read — or legislation assuredly was labeled with can’t gamble that the high court will heard,Y if they were lucky enough to have the pejorative Obamacare label after overturn the entire law. have to rethink their original business plans for one of the treasured seats in the some poll or survey showed it was a hot- That’s one reason why health care drilling in Ohio,” Tom Stewart, the association’s Supreme Court — these words: button term that would help rally the reform and its impact on employers is a executive vice president, said in his group’s March “One way or another, Congress is opposition. major topic at our April 18 General & 26 announcement of its opposition to a tax hike. going to have to reconsider this. The justices’ real work begins In-House Counsel Summit at LaCentre “Ohioans deserve prosperity through growth, and Why isn’t it better to have them BRIAN now as they deliberate and try in Westlake. If you are an attorney or this tax proposal has placed that opportunity at reconsider it in toto?” TUCKER to influence their colleagues accountant advising businesses, or own risk,” Mr. Stewart stated. Now, I don’t remember very one way or another. It would or run a company with a health care But as Crain’s reporter Dan Shingler informed much from my high school not necessarily be a good thing plan, you’ll want to hear from this high- readers in last Monday’s issue, various industry Latin, but I know this: Justice for the country if the five con- powered panel: Patricia Decensi, vice observers say it would be an expensive proposition Antonin Scalia, a conservative servative justices carried the president and assistant general counsel, justice and Ronald Reagan day in a 5-4 vote that would Medical Mutual of Ohio; Janet Miller, for energy companies not to proceed with drilling in appointee, wants this whole throw out an entire piece of chief legal officer, University Hospitals; Ohio after paying billions of dollars to lease the “Obamacare” thing handed major legislation, and they Sue McBride, healthcare advisory prin- mineral rights to vast amounts of shale land. right back to the lawmakers who know it. cipal, KPMG; and Jerry Grisko, president The catch for energy companies is that the leases passed it. So they’ll write, present, and chief operating officer of CBiz Inc. require drillers to begin production on each property “It,” of course, is the Patient Protection debate and perhaps even argue a bit The other topics are data privacy and in three to five years. A company that fails to do so and Affordable Care Act. The sweeping between now and the summer. In the risk, executive compensation and risk by the end of a lease either loses the lease or must law, among many, many other things, meantime, however, businesses don’t management, and all panelists are widely pay a cash bonus to renew it. And, as Mr. Shingler requires Americans to buy some sort of have any clarity on how to proceed. And regarded experts in their fields. Register reported, there’s no escape clause even if the state health care insurance if they do not have those in or around the health care industry, at www.crainscleveland.com/counsel or it provided by their employer. whether they’re hospitals, insurers, by calling Jessica Snyder at 216-522- raises the severance tax. There are plenty of other provisions, suppliers, physicians, attorneys, accoun- 1383. ■ “For better or worse, the companies have created a contractual obligation to drill,” said former oil and gas attorney Andrew Thomas, who’s now an executive- THE BIG ISSUE in-residence at Cleveland State University. Even though the oil and gas producers have put If you live within the city of Cleveland, what’s your favorite part about living there? If you don’t live in the city, what themselves over a barrel with their leases, they’re might persuade you to consider it? more likely to invest aggressively in Ohio if the tax climate here is favorable relative to other states. And that’s where the Kasich team must be mindful of the total impact of Ohio’s tax policy on energy companies. As the Ohio Oil and Gas Association notes, oil and gas producers also pay the state’s income tax and its commercial activity tax — a tax assessed on a company’s gross receipts — besides the severance tax. If the Kasich administration’s goal is to keep Ohio competitive with other oil- and gas-producing states, then it can’t focus solely on the severance MICHAEL BARTELME ALLIE HOLLISTER DAVE CONDON JUDY BARABAS tax. Cleveland (West Park) Cleveland (downtown) Cleveland (Edgewater) Medina That said, Gov. Kasich also shouldn’t miss an I would because of the Safety. Just more police I do live in the city of Cleveland, Nothing, because I live out in opportunity to derive more revenue for the state if restaurants, and I could walk to around. I hear stories about and it’s easy access to down- the country and I don’t like the severance tax can be structured in a way that sporting events. I don’t know how people are robbed and town. I like not being stuck on having neighbors. keeps Ohio in line with the tax policies of other that I can afford living in the cars broken into, and that in 480 or I-90. states as they affect energy producers. (inner) city at this particular itself is enough for me to stay It’s OK to squeeze the golden goose a bit — just moment. away. don’t do it so hard that it won’t lay eggs. ➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com. 20120402-NEWS--9-NAT-CCI-CL_-- 3/29/2012 1:30 PM Page 1

APRIL 2 - 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 PERSONAL VIEW Indians hire new premium sales leader Browns ex-exec charged 2007. He also is a graduate of Mount executive in charge of the premium Some internal trading Union College. seating areas in a number of years, with improving current In his new role, Mr. Robbins is but Mr. Robbins’ hire will give the charged with selling more of the Tribe’s team leaders in premium, season numbers, charting future extensive premium seating inventory ticket and group sales. Mr. Shapiro should be exempt from now, while also charting how best said Mr. Robbins emerged from By JOEL HAMMOND to increase sales in the long term. candidate interviews that spanned [email protected] “If we were going to build a ball- two to three months, and possesses financial reform law park, what mix of premium seats the right experience for the job: He The Cleveland Indians are placing would it have? How many suites?,” has worked in Cleveland, so he more emphasis on an area in which said team president Mark Shapiro understands the challenges here, By MARCIA L. FUDGE U.S. Rep. Fudge represents the they’ve struggled recently. in describing Mr. Robbins’ task. but his experiences in Oakland and th and STEVE STIVERS state’s 11 District and U.S. Rep. The team has hired Ryan Robbins, That process will involve studying the NFL also give him the proper Stivers represents Ohio’s 15th District. most recently the Oakland Raiders’ Cleveland’s current market trends outside perspective. ome would say bipartisanship director of premium seating, to head as well as projections for what the “It’s a tough job,” Mr. Shapiro said. is on life support or nonexis- facing swaps through a single or the Indians’ premium seating efforts. market might look like down the “We can’t look at changes indepen- tent. Stories of pervasive small number of affiliates. Mr. Robbins is no stranger to road. It also will include studying dent of other changes. What should arguments between Democ- Proposed derivatives rules under Cleveland. Before joining the Raiders, “industry comparables,” Mr. Shapiro the number of club seats be, and how Srats and Republicans cover the front Dodd-Frank could require both the native of Marlington, Ohio, said, or teams in similar financial does that then affect our suites? How pages and fill television news reports. inter-affiliate swaps and market- worked as the Cleveland Browns’ and market situations as the Indians. does that affect a home plate club? We even witnessed the downgrade facing swaps to meet the same regu- manager of ticket sales from 2004 to The Indians have not had an We have to understand that mix.” ■ of the credit rating of the United latory requirements, even though States because of the historic 2011 inter-affiliate swaps do not increase debacle over the debt ceiling. systemic risk. But not all hope is lost. It is Companies currently use central- LETTER possible for Democrats and Repub- ized hedging, where one or a small licans to work together on legisla- number of affiliates act as the tion that stands to benefit American external-facing party. This allows Business bias taints view on fracking business and our nation’s economy. companies to concentrate trade Although we have differing views expertise, better evaluate counter- ■ Your March 19 issue included a the past 60 years there are no docu- Survey recently released two new on the effectiveness of the Dodd- party credit risk and secure better Personal View by Spencer Abraham mented cases of wells created by presentations about the Utica shale Frank Wall Street Reform and pricing through economies of scale. that was headlined, “Fracking con- the hydraulic fracturing, or fracking, gas play in Ohio. They include a Consumer Protection Act, we were Centralized hedging also eliminates cerns formed out of fear, despite method that are tied to drinking number of new maps showing many able to come together to improve a duplicative execution, compliance facts.” This pro-big-business, water contamination. Mr. Abraham aspects of the geology, such as the portion of the bill dealing with and reporting functions and allows environmental-concerns-be-damned obviously lives in the proverbial extent, thickness and gas potential inter-affiliate trades. Regulation of a company to net positions held by viewpoint smacks of the same blind ivory tower. Maybe we can ship him of the Utica in Ohio. inter-affiliate trades should reflect its various affiliates. In addition, stubborn responses big business some tap water that one may light There are several illustrations the economic reality that internal exchange execution and real-time has used in the past when opposing with a match. depicting how fracking wells are trades do not increase systemic risk. reporting would mislead markets such ideas as tobacco smoke is Too bad Crain’s cannot also placed, and where in Ohio drilling That’s why we introduced H.R. and flood data repositories with harmful to health, asbestos inhala- include neutral and/or alternative has occurred. You can find the two 2779, which would prevent needless irrelevant information. Real-time tion causes respiratory health issues positions and references in the presentations on the ODNR website and costly regulation of internal reporting of inter-affiliate swaps and many more instances we all Personal Views it publishes. at www.ohiodnr.gov/tabid/23014 trades while providing safeguards to would not improve price trans- can think of. Mr. Abraham’s bias and ignorant /default.aspx. ensure targeted application. parency because the “prices” of It is shocking such nonsense arguments don’t include any valid Hopefully you will hear from others H.R. 2779 would prevent internal, these swaps are not market deter- should come from a man who served evidence or research, yet he belittles in the scientific community about inter-affiliate trades from being mined. as U.S. Secretary of Energy and is those who contend fracking is Mr. Abraham’s opinion piece. subject to regulations that were Imposing requirements that are currently CEO for a Washington, unsafe. designed to apply only to certain designed to address systemic risk D.C., public affairs firm. The Ohio Department of Natural Tom Sampliner street-facing swaps. The measure on inter-affiliate trades would Mr. Abraham contends that in Resources’ Division of Geological University Heights was approved by the House Financial create costs without a corresponding Services Committee by a vote of 53- benefit. It would place substantial 0, the House Agriculture Committee burdens on end users and con- by unanimous voice vote and it sumers, increasing costs to the passed on the House floor last week. economy and could force companies Inter-affiliate swaps are executed to abandon proven and efficient between entities within a single methods of managing their risk How RTA alleviates corporation or corporate group to through centralized risk-mitigation allocate risk within the group. centers. Companies, such as Cleveland- We hope our colleagues will join based Eaton Corp., use inter-affiliate us in reaching across the aisle and Medical Mutual’s swaps to hedge business risk. This doing what is in the best interest of centralization of hedging allows a our nation’s economy and American corporation to use inter-affiliate business. We urge our colleagues in swaps to combine its positions and the Senate to bring up this bill for a car-related pain: execute most or all of its market- vote. ■

WRITE TO US Send your letters to: Mark Dodosh, editor, Crain’s Cleveland Business, 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 e-mail: [email protected]

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10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 2 - 8, 2012 Cureo cures stakeholder discussion ills GOING PLACES has had with early users have con- in 2008 for an undisclosed price to JOB CHANGES Wooster firm’s social firmed that Cureo’s founders aren’t e-commerce software firm Reardon media site plays well the only ones who wanted a better Commerce Inc. of Foster City, Calif. CONSTRUCTION way to communicate, Mr. Vaeth said. Cureo co-founder and chairman TURNER CONSTRUCTION CO.: with early adopters “We are learning that we are right Ted Frank says the followers need Jack Kellogg to preconstruction in spades,” he said. the site as much as the companies do. manager; Lauren Sabol to marketing By CHUCK SODER Businesses and other organiza- Mr. Frank, who has helped start or specialist. [email protected] tions eventually will pay a monthly fee run several businesses over the years, to use Cureo.com, he said. They’ll long has been looking for a way to DISTRIBUTION Simmerly Zampino Sivak Both Andrew Vaeth and Theodore then invite anyone they want to stay make the process of communica- Frank used the word “nightmare” to in touch with to follow them on the tion easier. His desire to do some- BEARING DISTRIBUTORS INC.: describe how hard it is for a company site. Followers get free access, but thing about it increased, however, Gary Simmerly to industrial to stay in touch with its investors, Cureo plans to give them an option when he became a venture partner automation manager. board members, employees, suppliers to pay a fee for premium features. at JumpStart, where he worked with and anyone else who needs to stay Companies can give some followers many local startups. ENGINEERING up to date with the business. access to more information than Today Mr. Frank is chief operating MANNIK & SMITH GROUP INC.: That’s why the two men, along others. For instance, key executives officer at payment card services John A. Zampino to director of with John Veney, decided to start would be allowed to see financial provider SparkBase Inc. of Cleve- environmental services and brownfield Kowal McGoldrick Cristell Cureo, a social media site designed data, internal documents and other land, one of Cureo’s first users. Mr. redevelopment, Northeast Ohio. to give businesses a secure way to sensitive information, whereas mem- Frank said the site has made his life communicate with their stakeholders. bers of the news media would not. “so much easier.” FINANCE The Wooster company last Novem- Followers also can access traditional JumpStart also is encouraging ber received a $250,000 investment social media tools allowing them to some of its portfolio companies to WESTFIELD BANK: Michael commitment from JumpStart Inc., a send private or public messages to use the website, said Jerry Frantz, Gladysz to assistant vice president, Cleveland nonprofit that assists star- others who follow a given company. managing venture partner for the commercial banking officer. tups. Since then, the company has And if they follow five other nonprofit. So far, followers have built a test version of Cureo.com, companies, they’ll see updates from been quick to sign up, he said. FINANCIAL SERVICE and it’s preparing to launch a more all of them in a format designed to Mr. Frantz lauded the company’s CEDAR BROOK FINANCIAL Happel Hoopes Cantor formal version of the site this month. look like an online business maga- management team and the concept PARTNERS LLC: Christine Sivak to Between 20 and 30 companies zine, said Mr. Vaeth, who with Mr. behind Cureo, noting that businesses partner. LTD.: Michael Cantor to managing already are using the site. Most of Veney founded ExpenseWire, which need a better way to communicate director. sells software designed to help com- LEAGUE PARK ADVISORS: Connie them are based in Northeast Ohio, with stakeholders. OSTENDORF-MORRIS CO.: Boris panies manage employee expense Kowal to M&A project manager; said Mr. Vaeth, CEO of Cureo, which “There’s a big difference between Rogulja to associate, corporate reports. The company, which still Shannon McGoldrick to executive technically is called OptixConnect LLC. marketing your product and market- service group. The conversations the company has an office in Wooster, was sold ing your business,” he said. ■ assistant. PLANNED FINANCIAL SERVICES: TRANSACTION REALTY: Frank Cynthia Yang to wealth adviser Novak to sales associate. assistant. SERVICE I answer. HEALTH CARE DAVEY TREE EXPERT CO.: Pat Covey to chief operating officer; Jim I research. I network. VILLAGE AT MARYMOUNT: I call. Elizabeth Cristell to director of Stief to executive vice president, nursing. operations. EXPERIENT: John Hyland to strategic HOSPITALITY sales executive, association markets. I prospect. I learn. INTERCONTINENTAL HOTELS EXECUTIVE CATERERS AT CLEVELAND: Klaus Happel to LANDERHAVEN: Melissa Marik to executive chef. director of corporate sales. TODAY’S BUSINESS PRODUCTS: I watch. INSURANCE Jeff Fedor, CJ Milo, Kyle Brown I send. ALEX N. SILL CO.: Preston Hoopes and Lennie Brown to sales to vice president. associates. I respond. MANUFACTURING TECHNOLOGY BRENNAN INDUSTRIES: RAPID MARKETPLACE: Tony I email. Christopher Mays Sr. to inside sales Pietrocola to executive vice president, I track. representative. global sales and marketing. CLIFFS NATURAL RESOURCES INC.: Timothy Flanagan to chief TELECOMMUNICATION accounting officer, corporate controller; TIME WARNER CABLE: Wade I order. I lead. James Graham to vice president and Pavlas to operations support team general counsel, global operations; director, Northeast Ohio and Western Dave Cartella to vice president, global Pennsylvania. environmental affairs and counsel; I expand. Carolyn Cheverine to general counsel, corporate affairs and secretary. BOARDS I attach. DIEBOLD INC.: Annette Campbell MENORAH PARK FOUNDATION: to vice president, financial shared Richard S. Rivitz (Taft Stettinius & services. Hollister LLP) to president. Sign up for PRESTOLITE PERFORMANCE: Rob NEIGHBORHOOD HOUSING I connect with Cox Business. Cox Business Koller to ACCEL and Mallory brand SERVICES OF GREATER CLEVE- BECAUSE EVERY INTERNET & PHONE manager. LAND: Jeff Marshall (Hercules Tire for only & Rubber Co.) to president; Tanisha CONNECTION MATTERS. NONPROFIT Rush to first vice president; Amy $ CATHOLIC CHARITIES COMMUNITY Kulisheck to second vice president; SERVICES, SUMMIT COUNTY: Dea- Kirby Freeman to treasurer; Lisa 89 con John Green to agency director; Nelson to secretary. PER MONTH/WITH 2 YEAR Tracy Francescone to development At Cox Business, we’re there for you with advanced and reliable communications AGREEMENT director; Maureen McGinty to Camp AWARDS that contribute to your productivity and success. Connect today for voice, data Christopher director. and video. And save with our special offer, available for a limited time only. 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SPECIAL REPORT REMAKING WEST 25TH STREET AND THE MARKET DISTRICT In outlying parts of Ohio City, work to do Leaders aim to extend progress to Lorain Ave.

By SCOTT SUTTELL [email protected]

t least a couple times a month, Julia Martin makes the short trip from her apartment on the West SideA of Cleveland to Ohio City, usu- ally to visit the West Side Market. The area around West 25th Street has almost everything Ms. Martin says she values about city life — interesting restaurants, eclectic local retail and a “distinct feeling” she can’t get elsewhere. “I definitely could see myself living here when I’m ready to buy a house,” says Ms. Martin, 25, who hopes to do just that in about a year.

JASON MILLER Ohio City has picked up that kind The West 25th Street/Market District area, as seen from the top of the United Bank Building of momentum as its Market District concept, which is focused on artisan- style businesses around the West Side Market, has struck a chord and attracted growing numbers of resi- The awakening of a sleeping giant dents and visitors. But outside the Market District, particularly along stretches of Lorain Avenue, there’s a less-enticing Ohio New resident pool in ’90s, last decade help cool prior prickly politics, propel growth City marked by older and struggling retailers, particularly used car lots. By TIMOTHY MAGAW INSIDE: The West Side Market’s “The giant’s always been there, The rejuvenation efforts in Ohio [email protected] centennial celebration offers a chance but the giant woke up,” said City to date have been extensive, to lure new customers, bring back old Cleveland City Councilman Joe neighborhood advocates say, but hen Pat and Dan ones. Page 17 Cimperman, whose ward includes they are by no means complete. Conway opened Great Ohio City. “When you see some of those Lakes Brewing Co. in used car lots, it just cries out for in mind,” Pat Conway said. A storied past 1988 in Ohio City, their And as Great Lakes Brewing Co. something better,” says Cleveland cousinW — a Cleveland homicide grew into a regional powerhouse, Ohio City’s residents always City Councilman Joe Cimperman, detective — told them they were the small district it called home have been fiercely independent, who represents Ward 3, which crazy. steadily evolved from one of and the neighborhood in 1836 — includes Ohio City. Crusty bars with questionable Cleveland’s most downtrodden then its own municipality — even That’s obvious to the naked eye. clientele, constant threats of neighborhoods to what’s now waged a war of sorts with Cleveland Mr. Cimperman, working with break-ins and regular drug ped- marketed as the city’s “artisan by bombing a portion of Cleveland’s fellow Councilman Matt Zone and dling in a nearby park were daily neighborhood.” Columbus Road Bridge, which the city of Cleveland’s Planning realities in the district. Still, the What’s brought Ohio City out of Ohio City residents felt hurt the Department, last year helped do area near the historic West Side the ditch is by no means secret — commercial interests of their own something about it by passing a Market off West 25th Street, which the venerable West Side Market, neighborhood. Pedestrian Retail Overlay (PRO) at one time was home to as many the presence of long-standing Annexed by Cleveland in 1894, zone on Lorain Avenue, between as 30 breweries, had character. institutions such as St. Ignatius Ohio City became a hub for Euro- West 24th and West 65th streets. “We felt there was so much High School and Lutheran Hospital, pean immigrants and became one As its name implies, the PRO is possibility still in front of us, the proximity to downtown Cleve- of the most ethnically diverse intended to protect and encourage especially these old brick buildings land, and a group of community areas of the city. With its construc- pedestrian-oriented, mixed-use that conjured up the romance of and political organizers dedicated tion in 1912, the West Side Market, development in the district it brewing days past. … They fit to revitalizing the blighted neigh- which now brings in about a million covers. The designation requires, perfectly with the concept we had borhood. See ALIVE Page 14 See OUTLYING Page 18

ON THE WEB For expanded online coverage, including photo slideshows and video interviews, visit www.crainscleveland.com/w25th. 20120402-NEWS--12-NAT-CCI-CL_-- 3/29/2012 1:33 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: REMAKING WEST 25th APRIL 2 - 8, 2012

NEIGHBORHOOD LONG IN THE MAKING GETS NEW LIFE MORE THAN 20 BUSINESSES HAVE OPENED IN THE MARKET DISTRICT IN THE PAST 18 MONTHS.

1 Soho Kitchen and Bar on the top floors of the United Bank Building, which Mr. see everything just a few feet away,” said Mike Mitchell of Maron anticipates eventually will be filled with office ten- the two shifts a day that will be crafting frozen goodness 2011 ants. out of local, homemade ingredients. “It’s like an ice cream Nolan Konkoski and Molly Smith always show.” The Mitchells, who are preserving their building have loved Ohio City, so when they 5 Market Square Park under historic standards, also hope to tap into some of were looking to open their first restaurant the pair kept the neighborhood’s resources — namely, make more ice returning to the neighborhood. As luck would have it, a 2012 (projected) cream with Great Lakes beer as an ingredient. space once occupied by a Cuban bakery was available. Greg Peckham, managing director “This neighborhood has such a buzz about it,” he said. The of LAND Studio, can walk across the 9 Cleveland Hostel 65-seat restaurant serves “modern southern food,” and it street from his new offices on West 2012 (projected) currently employs about 15 people. Mr. Konkoski said that 25th and see the results of his or- When Mark Raymond was in pre- with no advertising he opened the doors to his restaurant ganization’s work. The under-renovation Market Square school, his teacher asked him for late last year, and it’s been packed ever since. “We felt it Park, a project in which he was involved, is expected to what he was thankful. His an- would be very difficult to fail in this neighborhood,” he be done in May. The park’s design is tied into the idea of swer: the Terminal Tower. Today, said. harvest and the neighborhood being the center for the the Geneva native with an urban planning degree can city’s food culture. “A lot of it was understanding how the get a bird’s-eye look at that landmark by standing on the 2 Joy Machines Bike Shop park fit into the development agenda of Ohio City,” Mr. roof of his future Cleveland Hostel. Work on the circa-1900 Peckham said. “That park alone becomes a sort of a gate- building started in January, and it will have 15 rooms, ac- 2011 way into the rest of the business district.” (Park rendering commodating 60 guests, as well as a community kitchen. Alex Nosse grew up in Ohio City, so courtesy of artist Mark Moskovitz.) Room rates will range from $25 to $70 a night, with pri- it wasn’t a stretch when he located vate and nonprivate rooms available. As for Mr. Raymond, the bike shop he owns with Renato 6 he will live on the hostel’s third floor — close to that spec- Pereira-Castillo on West 25th. Mr. Nosse describes Joy Ma- Market Garden Brewery tacular view. It is anticipated the hostel will be ready in chines Bike Shop as a shop for everyday riders, with many 2011 time for the festivities surrounding the West Side Market’s of the store’s customers coming from within a couple- It is entirely possible that Sam Mc- centennial. mile radius. As a native to the West 25th area, the swift Nulty will wear out a path across pace of development is not lost on Mr. Nosse, who points West 25th Street. In addition to living there, last year he 10 to it as proof of a “healthy urban neighborhood.” “All of opened his fourth business on the street, next to the West LAND Studio 2012 the business owners feel a great sense of camaraderie,” he Side Market and across from his other ventures: McNulty’s LAND Studio’s space said. Of course, he noted, he’d love to see more businesses Bier Markt (2005); Bar Cento (2007); and Speakeasy (2009). on West 25th Street represents a new start for this orga- that sell necessities — like a shoe store. Market Garden, which is slated to have a rooftop patio this nization, which is the result of the partnership between summer, offers 12 of its own beers at any one time un- ParkWorks and Cleveland Public Art. The nonprofit, whose 3 Campbell’s Sweets Factory der the direction of brewmaster Andy Tveekrem. For Mr. name stands for landscape, art, neighborhoods and de- 2011 McNulty, not only is Market Garden his first step into the velopment, is focused on “how good design is part of world of brewing (and soon, distilling), it also may end up making a competitive city,” said Greg Peckham, managing Jeff Campbell loves popcorn. And being a segue into his next move — he has dreams for director. The organization moved last month into 6,000 well he should; his business is on a 70,000-square-foot production facility located within a square feet above PNC Bank, marking an important step track to do $800,000 in sales this year, 15-minute bike ride of West 25th. in the organizations coming together as one, said Mr. and he projects that number to increase to $2.5 million Peckham, whose previous office also was located on West by the end of 2014. His West 25th Street store is an out- 7 25th. “There is a real strong community and family of growth from his space at the West Side Market, where Mr. Salty Not Sweet 2011 nonprofits centered around the Market District,” he said. Campbell first opened about eight years ago. While he’s Candra Squire is a letter-press printer “We have a window out to a very healthy, active neigh- since expanded his venture to include selling cupcakes who was looking for a permanent borhood.” and juice, popcorn represents 60% of Campbell’s business, place beyond the typical craft show to with its famed Dichotomy (a delectable mix of cheddar show her wares, which are greeting and caramel) selling 3-to-1 over any other flavor. Indeed, cards she jokingly characterizes as “horrible” and “ridicu- Video coverage: What’s different about Mr. Campbell estimates he orders roughly 19,500 pounds lous.” Her store, a venture she runs with Melissa Major, is doing business on West 25th? of corn a year to keep his business popping. (Mr. Camp- just that place. Originally located in the Waterloo Arts Dis- www.crainscleveland.com/section/W25thMap bell’s favorite popcorn flavor, by the way: white cheddar trict before moving last year to its bigger, 1,200-square- jalapeno.) foot space on West 25th, the store features everything handmade and offers workshops for aspiring artisans. OTHER NEWCOMERS 4 United Bank Building For her part, Ms. Squire said being among so many entre- preneurs in Ohio City has a strength-in-numbers kind of 11. Alaturka (Penzey’s Spices, 2010; appeal: “It’s so hard for one little tiny shop to get people 12. Bonbon Pastry & Café Crop Bistro & Bar, 2011) to come out to buy local. … It doesn’t feel like you’re out 13. Market at the Fig The bank vault in the basement of here alone.” 14. Johnnyville Slugger the United Bank Building might 15. Maggie’s Vegan Bakery represent a time from days long past, but its use today as 8 16. Orale Contemporary Kitchen a private dining space for Crop Bistro & Bar represents a Mitchell’s Ice Cream 17. Proactive Controls Group (PCG) rebirth for the landmark structure. In addition to Crop, the 2012 (projected) 18. Room Service building currently houses Penzey’s Spices and the Alco- An ice cream destination. That’s 19. Vision Yoga hol, Drug Addiction and Mental Health Services Board of what brothers Pete and Mike 20. Deering Vintage Mitchell hope their location be- Cuyahoga County, with Bonbon Pastry & Café next door. 21. Bogtrotter’s Doorstep Ari Maron’s MRN Ltd., the developer behind the remake of comes when it opens on West 25th later this year. The t
L.E.A.P. (office tenant) (Lorain Avenue) East Fourth Street, not only has committed to the redo of space long ago occupied by a vaudeville theater — and Cigar Cigars (Lorain Avenue) this structure, but it has scooped up a number of nearby more recently the night club Moda — will be home to t
buildings. “This is a particularly exciting neighborhood Mitchell’s eighth shop and its production. “There’s going t Urban Orchid (Bridge Avenue) within the city,” Mr. Maron said. Work is still taking place to be as thin a layer of glass as possible … you’re going to Source: Ohio City Inc. (The Market District is West 25th to 28th; Chatham to Jay.) 20120402-NEWS--13-NAT-CCI-CL_-- 3/29/2012 1:34 PM Page 1

th APRIL 2 - 8, 2012 SPECIAL REPORT: REMAKING WEST 25 CRAIN’S CLEVELAND BUSINESS 13

2 1 Ohio City Farm

Bridge Fulton LONGTIME COMMUNITY ANCHORS District 1 St. Ignatius High School 1886

2 Lutheran Hospital 1896

3 West Side Market 1912 Ask any of the busi- ness owners in Ohio City, and they’ll tell you the West Side Market is the life- blood of the neighborhood. The venerable market, which turns 100 years old this year, brings more than a million people a year into the growing district. Home to more than 100 vendors, ranging from butchers to bak- ers, the market has gained national recognition as one of the premiere public markets in the country. Often touted by some of the region’s most popular chefs, the market draws its patrons from all over Northeast Ohio and even across the country. Christine Zuniga Eadie, 1 the market’s director, said while the market’s centen- nial celebration is a huge opportunity for the market’s vendors, it also has the potential to spotlight the entire region. Video coverage: Hear longtime vendors talk about how West 25th has changed. www.crainscleveland.com/section/W25thMap 4 Great Lakes Brewing Co. 1988 When Great Lakes Brewing Co. opened shop in the late 1980s, it was the only craft brewery, not only in Cleveland, but the entire state of Ohio. And since then, the company’s assorted libations have helped jumpstart a craft brew- ing craze (particularly around the holiday season with its sought-after Christmas Ale) that’s extended well beyond the brewery’s home in Ohio City. In 2010, the company invested $7 million in capital improvements to expand its brewing capacity in the district, and now distributes is roster of beers in 13 states and Washing- ton, D.C. Last year, the company churned out 120,000 barrels of beer. And according to Pat Conway, the company’s co-owner, the company is running out of room to expand because, well, there are “just too many mouths to feed.” Video coverage: Pat Conway discusses setting up shop in Ohio City almost 20 years ago. www.crainscleveland.com/section/W25thMap

Business profiles by Amy Ann Stoessel and Timothy Magaw Layout and map design by Lauren Rafferty 20120402-NEWS--14-NAT-CCI-CL_-- 3/29/2012 3:27 PM Page 1

th 14 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: REMAKING WEST 25 APRIL 2 - 8, 2012 Alive: Anchor institutions contribute to district’s vitality continued from PAGE 11 ON THE WEB people a year, became a focal point by bringing various ethnic groups For smart phone together under one roof. users, scan this QR, Despite a residential boom in the or “quick response” 1960s spurred by historic preserva- code, with any QR tionists, political discord hindered code reader to view the development of the area for more photos from the present-day th decades, resulting in the creation of West 25 Street and Market District two community development cor- area. porations with differing missions. However, in the 1990s and 2000s, are intertwined, said Christine a group of people started moving Zuniga Eadie, the manager of the into the area who appreciated the West Side Market. urbanism and economic diversity “We’re rebuilding a partnership,” the area offered. she said. “When something works “We have a dynamic group of leaders at neighborhood institutions, a dynamic group of investors ... and strong political leadership.” – Eric Wobser, executive director, Ohio City Inc.

“That was the group that really for the market, it has an impact on started to calm the politics of the the market district and vice versa.” neighborhood,” said Eric Wobser, The West Side Market has been a the executive director of Ohio City pillar for the growing food move- Inc., which was the product of the ment in Northeast Ohio with some two community development cor- of Cleveland’s most famous chefs, porations that ultimately merged. such as Jonathon Sawyer and Michael Symon, regularly touting It’s all about the food JASON MILLER the value of the market. A runner takes advantage of one of a spate of warm March days to exercise in the Market District area. For more pre- While the West Side Market’s In 2010, the local food movement sent-day photos from the neighborhood, visit www.crainscleveland.com/W25thGallery. centennial celebration this fall received another jolt when the six- wasn’t the main driver for the acre Ohio City Farm — the largest purveyor Mitchell’s plans to move land Clinic’s Lutheran Hospital — that’s driving the success in Ohio development of the district, it’s contiguous urban farm in the nation into Ohio City. also have invested heavily in the City, which is bringing young peo- provided Ohio City’s business and — opened at West 24th Street and “To be in the shadows of the redevelopment of the area. ple in droves to live in the area. civic leaders a timeline to work Bridge Avenue. The farm’s bounty tower of the West Side Market, making “We’ve served the community “A number of good things are along and helped accelerate the has gone to local businesses, including gourmet beer, ice cream, breads or for well over 100 years, and we are coming together at the right time,” rate at which the area is being Great Lakes Brewing, one of the artisan cuisine … it’s perfect,” extremely excited about the con- Mr. Wobser said. “We have a dynamic transformed. farm’s co-developers. Great Lakes’ Mr. Conway said. tinued rejuvenation of West 25th group of leaders at neighborhood The idea of one of Cleveland’s Great Lakes Brewing’s success, Street,” Lutheran president Dr. institutions, a dynamic group of premier institutions turning 100 coupled with the allure of the Strong partners Brian Donley said. investors, both real estate developers years old offered the opportunity to market, has attracted a number of While the West Side Market Collectively, Mr. Wobser said and entrepreneurs, and strong showcase the neighborhood in addi- other local, and now-thriving, could be considered the heart of both institutions have contributed political leadership. We have the tion to the market, Mr. Wobser noted. operations such as Sam McNulty’s Ohio City, the neighborhood’s two about $200,000 to the effort to right people at the right place at After all, the success of the market Bier Mrkt and the Market Garden other anchor institutions — St. clean up a blighted portion of the the right time.” and its surrounding neighborhood Brewery. Also, local ice cream Ignatius High School and the Cleve- neighborhood as part of the cre- Mr. Cimperman said he’s heard ation of a special improvement from companies interested in district. setting up shop in Ohio City, and While both institutions fall the neighborhood’s best days are outside the borders of the SID, Mr. right around the corner if the Wobser said the notion that both momentum can hold. would commit resources to the Moreover, Mr. Cimperman said effort speaks volumes about their what’s happening in the neighbor- commitment to the neighborhood. hood could be viewed as a model As part of the SID, neighborhood to help jumpstart the redevelop- property owners in Ohio City last ment of other neighborhoods in year agreed to assess themselves a and around Cleveland. fee to pay for better security and “Nobody involved with this is maintenance than Cleveland could tired,” Mr. Cimperman said. “It’s 7 provide. It’s that sort of unified a.m. in Ohio City, and there’s still a vision, community leaders say, full day ahead.” ■

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th APRIL 2 - 8, 2012 SPECIAL REPORT: REMAKING WEST 25 CRAIN’S CLEVELAND BUSINESS 15 Monetary muscle still needed for market, district fixups By STAN BULLARD the West Side Market,” Mr. Wobser District provides the bank with an ParkWorks, to design the stand for able at Ohio City Inc.’s website, [email protected] said, “businesses are finding their opportunity to put its name before the urban farm near the market. www.ohiocity.org. Mr. Wobser way to the market for exposure.” people from the neighborhood and Other funds went into a $15,000 hopes the competition fills the last efining the difference in For example, Charter One, the region, Ms. Carpenter said, as well grant that helped 11 market five vacant storefronts. today’s West 25th Street presenting sponsor for the West as banking on food’s new celebrity. vendors improve signs, lighting or near the West Side Market Side Market Centennial, has “Our brand is that good banking shelving. And $40,000 went for a Iconic campaign from hard-scrabble condi- invested $500,000 in the Market is good citizenship,” Ms. Carpenter small business idea competition Contributing to the West Side Dtions for much of the time since the District and the West Side Market said, so signs and advertising at whose five winners now occupy Market centennial and the legacy late 1960s takes one four-letter word. Centennial. The bank counts Ohio City events benefit the bank’s neighborhood storefronts. program brings to mind the Cash. $100,000 of its contribution to the image. The decision is based on Charter One’s funding for the massive corporate and public Millions of dollars — which will neighborhood as sponsorship, estimates of attendance and value small business idea competition campaign to rejuvenate the Statue have to be raised from multiple according to Carrie Carpenter, se- of signage at events as well as worked so well — it even attracted of Liberty for its 1986 centennial. sources in coming years — are nior vice president and director of entertaining bank clients at events. applicants who did not get grants “The West Side Market is an needed in order to ensure a legacy public affairs at Charter One Ohio. Some funds went directly to six to the street — the bank and Ohio international icon,” Mr. Cimperman fund for the West Side Market and Sponsorship funds directly different nonprofits, from Neigh- City Inc. are doing it again this said. “If I’m a CEO and have a to continue the transformation of benefit the bank through promoting borhood Progress Inc. efforts to year with grants of $5,000 to chance to have my company associ- the surrounding Market District. its name, she said, while its founda- revitalize West 25th through several $20,000 for new or expanding ated with something with more visi- In the meantime, more than $50 tion, to satisfy tax laws, can gener- city neighborhoods to LAND Studio, businesses in the Market District. tors than the Rock and Roll Hall of million already has gone into West ate the bank nothing of value. the organization formed from the Requests for proposals for grants Fame and Museum or Great Lakes 25th near the market, remaking it Charter One decided the Market merger of Cleveland Public Art and are due at 5 p.m. May 21 and avail- Science Center, why wouldn’t I?” ■ into what it is today: a vital food resource with genuine character as well as an active entertainment, residential and commercial district that is a must-see for the social set, tourists and foodies. Two immediate financial tasks face the neighborhood today linked a banker can’t know to the centennial of the West Side Market this year and its focus as the site of the International Public your business without Markets Conference. First, the Centennial Commission knowing your community and Cleveland Mayor Frank Jackson both want to use the celebration as a means to create a legacy fund to Unlock a local approach to business banking. At KeyBank, we have maintain the market. Meanwhile, tailored solutions to help finance the future of your business. We’re also Ohio City still needs to raise the last $200,000 to meet the $900,000 part of your community and understand the marketplace. That means budget for centennial events. credit decisions happen faster, so you can quickly respond to new or The tasks do not daunt Eric Wobser, executive director of Ohio unexpected business opportunities. City Inc., which the city of Cleveland It’s a more personal approach with a bank that is committed to helping has authorized to oversee the mar- ket’s centennial celebration. Plan- the businesses in your local community thrive. ning is a big part of his solution, and a surprise source of funds — corporate Start a conversation. And unlock your possibilities. sponsorships — is an evolving part of the solution of the funding challenge. to key.com/business Planning comes into play because go an architectural study of the West call 877-KEY2BIZ Side Market building’s condition will not be finished until later this year. That study is crucial to deter- mining how much repair work the brick landmark and adjoining wood market stands need to make it another century. As a result, Mr. Wobser said, the market’s legacy campaign will kick off at a Nov. 3 gala chaired by Cleveland celebrity chefs Michael Symon and Jonathon Sawyer. The Jackson administration already has earmarked $2.3 million for West Side Market capital needs. Even without the study, Councilman Joe Cimperman, whose Ward 3 includes the area, knows more will be needed without the study. “The last time the city of Cleveland really spent money on the market was in the (Mayor Ralph) Locher administration,” Mr. Cimperman said of a regime that ended in 1967. Money doesn’t grow on trees Mr. Wobser argues the remainder of the legacy funding will come from philanthropic and corporate sources, and others see room for individual contributors. For example, while final centennial gala ticket prices have not been set, there most likely will be tiered ticket price options ranging from $150 to $500 with different event entry times. The other new-breed funding source is corporate sponsorships from others besides neighborhood bastions Lutheran Hospital and St. Credit products are subject to credit approval. Ignatius High School. ©2011 KeyCorp. KeyBank is Member FDIC. ADL2662 “Just like politicians for years have known it is good to be seen at 20120402-NEWS--16-NAT-CCI-CL_-- 3/29/2012 3:27 PM Page 1

th 16 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: REMAKING WEST 25 APRIL 2 - 8, 2012 Housing interest in step with commercial improvement New development luring prospective residents, though maintaining affordability a priority A CLOSER LOOK To see these homes post- By MICHELLE PARK ON THE WEB this piece have been victims of crime, renovation, go to www.crains [email protected] but they are quick to note that cleveland.com/W25thGallery. For smart phone users, scan this QR, or “quick response” they’ve been victimized infrequently. ou can’t miss ’em,” code, with any QR code reader to view before-and-after “If we were getting broken into Greg Peckham assured. photographs of home rehabilitations in Cleveland’s Ohio City every year, we wouldn’t be here,” “One is covered in neighborhood. said Mr. Peckham, whose house has scaffolding, and they been broken into once in the 14 years “Yboth look like hell.” Wobser said. area and get a taste of what living he’s lived in the neighborhood. No understatement there. Located Mr. Schlenkerman said the big there could be like, Mr. Wobser This spring, Ohio City will have its at Randall Road and John Avenue in attraction to Ohio City “right now said. Dave’s Supermarket and the own special improvement district, Cleveland’s Ohio City neighborhood, has quite a bit to do with the com- West Side Market are neighborhood where property owners in a defined the two houses Mr. Peckham bought mercial growth that’s occurring in anchors, but other service busi- area will pay an assessment to pay this year are eyesores — for now. the district.” nesses such as a florist, a bike shop for the kind of street cleanup, ■ David Hovis calls this renovation The one slated to be a new home Already, Ohio City has townhomes, and a fitness studio have hung their graffiti removal and visible security a “total gut job.” He and his wife, for Mr. Peckman’s family stands both new and renovated, and a shingles, too. As they do, the neigh- presence that has improved the Jen, bought this fire-damaged W. largely untouched by construction former department store converted borhood’s convenience grows. image of downtown. 32nd Street house and the adjacent workers, its greenish paint peeling off, into condominiums in The Fries Lynn Phares — another person Even without the extras of a property for $45,000 in 2010 and windows boarded up, door padlocked. and Schuele Building. There’s more investing in the neighborhood — special improvement district, poured roughly $400,000 into it. The other two-unit building is to come, too: One crew wants to moved with her husband to Ohio though, Brandon Sitler sees a The most expensive renovations covered in scaffolding, upon which redevelop a group of former ware- City in 2007 from Washington, difference in the neighborhood. An were energy efficiency upgrades, workers are perched this March house buildings into 72 apartment D.C., and formed the block club for Ohio City resident for eight years, including new insulation. The work Tuesday, nailing shingles to the units, and another has a 10- to their section of the neighborhood Mr. Sitler opened his flower shop, slashed the home’s energy costs to porch roof. 20-unit apartment development in early 2008. Such block clubs and The Urban Orchid, on Bridge $2,000 from $8,000 a year, Mr. Mr. Peckham’s renovations are two planned for the old Jay Hotel, Mr. the family-friendly events they Avenue last August. Hovis said. of many investments being made or Wobser said. coordinate — ice cream socials, “When I first moved here, it was already made in this historic district, All the while, rental rates are rising. pumpkin-decorating events and the kind of scary to walk home,” Mr. where new schools have opened One 20-unit building that used to like — are a common reason offered Sitler said. “Now it’s like there’s and more family-friendly activities, pull 95 cents per square foot is for the area’s influx of residents. always people walking around, including a babysitting co-op, now pulling roughly $1.30 per square Also, life is being breathed back laughing, hanging out. It seems exist. foot today, Mr. Wobser said. He into local parks, including renova- more like a neighborhood than it “What’s happening in this neigh- also knows a homeowner who is tions to Novak Park in 2010 and did before.” borhood, I think, is evolutionary,” renting at a rate twice his mortgage. Fairview Park in 2004. A master plan It’s not just the perception of crime, Mr. Peckham said. “There’s a Ohio City needs to maintain for Greenwood Park is under way. though, that may deter people. growing number of people who affordable housing, though, Mr. And there are new schools, Another issue for the neighborhood ■ At one time, this Lorain Avenue could be anywhere, and they’re Wobser and others stressed. including Near West Intergenera- is the behavior of some people who property was the Northeast Ohio choosing to be here.” “We want to make sure that folks tional, a public charter school that come there for social services headquarters for the Communist While the population in Cleveland other than bankers and lawyers opened in 2011, and Urban Com- provided by places such as local Party, according to property owner dropped 17% from 2000 to 2010, the can afford to live here, and that munity, a private school that churches, said Kathleen Knittel, a David Fleming, whose family area that comprises Ohio City rose won’t be easy,” he said, citing how opened in 2005. longtime resident. Though most of purchased it in April 2007. During in population by 1.2% during the property values are rising. “Now there’s an educational those people cause no problem, renovations that spanned nearly two same decade, said executives with The upward trajectory is easy to see. opportunity that parents feel they some act in ways that “at times has years, they finished three upstairs Ohio City Inc. who analyzed U.S. During a drive through the streets can consider an option to stay in negative impacts on our quality of residential units, including a different, Census data. Ohio City Inc. is the of Ohio City in February, Mr. Wobser the neighborhood and not have to life,” she said. very spacious unit in a former ball- area’s community development points seemingly to every other leave and go to the suburbs,” said Hurdles to home renovations room. The project’s cost exceeded corporation. house, describing renovations that Ms. Phares, who’s on the board for also can be a deterrent, Mr. Peckham $300,000, Mr. Fleming estimated. Once in the “shadows” of other have been done or will be done. Near West and is in the process of said. It took him 18 months to neighborhoods such as Tremont, “This was an empty house when renovating her house and another unravel his family’s properties from Ohio City is in higher demand today, I took this job,” Mr. Wobser says, property she plans to rent. a tangled history of previous own- said Chris Schlenkerman, a real pointing to a well-maintained The Cleveland Metropolitan ership and to bring them up to code estate agent who manages the Ohio house. “It was just falling apart, School District also plans to break through costly work. City office of the Howard Hanna boards on the windows.” ground in Ohio City this spring on “The number of curveballs that get brokerage. He observes the trend There’s also the large maroon two elementary schools, Paul thrown your way is unimaginable,” not only in closed sales, but in busy house whose owners won an Dunbar School and Orchard Mr. Peckham said. open houses, too. award from Ohio City Inc. for resi- School, both of which are slated to He suggests policy and finance The surge in interest really began dential renovation, and the former open in August 2013. improvements to facilitate more ■ The work done to this historic last year and has continued into YMCA, where a transformation Many hope the momentum projects like his. Italianate mansion cost more than this year, Mr. Schlenkerman said. into condominiums won it the spreads to Lorain Avenue, a corridor Ms. Phares said she hopes Ohio $700,000, involved more than 30 same recognition two years ago. that still has substantial blight, Mr. City will continue to promote itself. For the people contractors and took 18 months to “Until recently, things changed Wobser said. “If we can revitalize Still, she said, critics will remain. complete, according to owner The most recent census revealed slowly,” Mr. Wobser said. “Two Lorain, we can unite the neighbor- “I don’t know what you do about Norma Makar. Norma and Lou Makar that the neighborhood’s population businesses would open, one would hood,” Mr. Wobser said. the naysayers — the people who live purchased the Clinton Avenue close. But I think, always, things were in the suburbs and never have some- of 25- to 34-year-olds increased Battling the naysayers home, built in the 1860s, when it most, but empty nesters also are moving to a positive momentum.” thing good to say about Cleveland,” was just a “big pile of bricks” without Though a lot of good is occurring, Ms. Phares said. “Some people, settling in, said Eric Wobser, execu- That neighborhood feel heating or electricity and transformed tive director of Ohio City Inc. The house seekers often ask how safe you’re never going to change their it with new roofing, exterior paint group talks to people “all the time As Ohio City’s commercial district Ohio City is, real estate agents say. minds, and you’re never going to get and $50,000 in new windows alone. who can’t find an apartment,” Mr. booms, more visitors flock to the Many residents interviewed for them to give it a shot.” ■

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th APRIL 2 - 8, 2012 SPECIAL REPORT: REMAKING WEST 25 CRAIN’S CLEVELAND BUSINESS 17 Market, vendors hope for boost from centennial events he West Side Market’s ON THE WEB centennial celebration this year is as much a time to For smart phone celebrate its rich (and tasty) users, scan this QR, Thistory as it is to figure out how to or “quick response” make the market sustainable for at code, with any QR least another 100 years. code reader to Some of the goals this year are to watch videos of West Market vendors increase the number of new shoppers talking about their experience there. coming to the market and bring The videos can be found at www. back old customers who had left, CrainsCleveland.com/W25thGallery. according to Christine Zuniga Eadie, the West Side Market’s manager. mounting capital needs. The idea, Ms. Eadie said, is to “It’s a huge opportunity for not ensure the West Side Market remains only the vendors here but the a living, breathing and usable market Greater Cleveland region,” Ms. Eadie and doesn’t transform into a museum said. “So many local chefs grew up like other public markets around shopping here.” the country. Part of that, she said, is Terry Frick of Frickaccios Pizza showing the community what the Market at the West Side Market said market’s vendors have to offer. she’s already seen an influx of new “The vendors are by far the greatest customers at the market, as younger asset the market has,” Ms. Eadie said. people have taken an interest in Working with You to Build Success The celebration officially kicks off locally produced food. With the with fireworks and an ice cream centennial events approaching, she At Taft, building relationships that help our clients build their businesses social on June 2; a street festival anticipates the momentum only is our top priority. From development, finance, construction, acquisitions, and parade on Oct. 7; and culmi- will grow stronger. nates with a gala — co-chaired by “This is just the way shopping dispositions, exchanges, leases, and property operations, we have the renowned local chefs Michael Symon should be,” Ms. Frick said. “That’s extensive toolbox of legal resources to efficiently address every and Jonathon Sawyer — on Nov. 3. what I believe.” The gala will serve as the launching For a full list of centennial cele- need. Learn how our 126-year track record of performance can Taft Stettinius & Hollister LLP point for a fundraising campaign to bration events, visit www.westside help build your business success. www.taftlaw.com help offset the costs of the market’s market.org. — Timothy Magaw 200 Public Square, Suite 3500, Cleveland, OH 44114-2302 U P: (216) 241-2838 Business and Finance U Litigation U Labor and Employment U Business Restructuring, Bankruptcy and Creditor Rights OHIO CITY THROUGH THE YEARS i>Ì Ê>˜`ʈviÊ-Vˆi˜ViÃÊUʘÌiiVÌÕ>Ê*Àœ«iÀÌÞÊU Tax U Private Client U Environmental Law U Real Estate

THE PRACTICAL

PHOTO COURTESY OF OHIO CITY INC. ABOVE: The West Side Market under construction in 1911. ■ Ohio City originally was part ON THE WEB of Brooklyn Township, founded in 1818. On March 3, 1836, two days For smart phone before Cleveland’s incorporation, users, scan this QR, it became an independent munici- or “quick response” pality. On June 5, 1854, it was code, with any QR annexed to Cleveland. code reader to view …online ■ more historic photos from the West Ohio City became known as Learn more at a Multiple responsibilities, a demanding schedule, travel…any of these the Near West Side when it was Side Market and the Market District. annexed to Cleveland. In the late The photos can be found at www. MBAVirtual Open House make it difficult to pursue an advanced degree, no matter how much 19th century, the area attracted CrainsCleveland.com/W25thGallery. it might benefit your career. those seeking jobs at the docks, Wednesday, April 11 mills, foundries, distilleries and www.bw.edu/mba-online That’s why Baldwin-Wallace College is now offering its MBA in rented for $42 per month, and 25 bottling works. Management in a hybrid format—in the two-year program, 75% of patients were admitted the first ■ The West Side Market is built year. Lutheran Hospital in 1898 the coursework is online and the remaining work completed in seven on a site the first mayor of Ohio moved to Franklin Avenue. In addi- City, Josiah Barber, and another weekends on our Berea campus. tion to several expansions and pioneer, Richard Lord, deeded to construction projects through the You will study Baldwin-Wallace’s distinctive, systems approach to the city on condition it be kept a years, a new lobby and hospital marketplace. Market Square was management, the same program (with the same faculty) that is offered entrance facing West 25th Street the site of the Pearl Street market, a in the traditional classroom. Its combination of sound theory and real- was built in 1997, the same year it one-story wooden market built in became part of the Cleveland Clinic. world application has produced effective managers for organizations of 1868 at Lorain Avenue and Pearl ■ James A. Garfield, 20th president all types for more than 30 years. Road (West 25th Street). of the United States, in 1857 was ■ Present-day Ohio City is home pastor of Franklin Circle Christian 275 Eastland Road Start the next phase of your career. Learn more about B-W’s online MBA to more than 90 nonprofits. Church. Berea, Ohio 44017 at www.bw.edu/mba-online. Classes begin in August 2012. ■ In 1896, Lutheran Hospital opened at Fulton and West 29th SOURCE: WWW.OHIOCITY.ORG; Baldwin-Wallace College does not discriminate on the basis of race, creed, age, disability, national origin, gender or sexual orientation in the administration of any policies or programs. Street in a residence that was WWW.LUTHERANHOSPITAL.ORG 20120402-NEWS--18-NAT-CCI-CL_-- 3/30/2012 10:12 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: REMAKING WEST 25th APRIL 2 - 8, 2012

There’s “not much news yet on what can be accomplished with a the parking structure front,” Mr. more collaborative approach,” Ms. Outlying: Growth leads to challenges Wobser said, other than that the Leek-Nelson said. need exists and that discussions continued from PAGE 11 Two community meetings held The initial Launch Lorain report have begun with city officials. At play for instance, that new buildings be to collect input drew more than touches on its share of small issues But Messrs. Cimperman and Mr. Wobser is aware of the set back no more than five feet from 200 stakeholders, including busi- — fixing sidewalks and filling pot- Wobser noted that public transit is a importance not just of economic a street right-of-way. It also requires nesses, nonprofits and residents. holes among them — but it doesn’t key part of the future of Ohio City, development and infrastructure that parking lots, where feasible, Almost everything is on the table shy away from thinking big on with the Greater Cleveland Regional issues, but also what might be be located in the rear of buildings. for Lorain Avenue, which is, essen- infrastructure improvement. Transit Authority playing a key role. thought of as the “softer side” of Most importantly, Mr. Cimperman tially, the main street of the West For instance, one possibility it The Launch Lorain report raises life in the neighborhood — parks, said, it “specifically prohibits” new Side; the exercise includes a look raises is a reconfiguration of the the possibility of an “enhanced festivals, sports leagues for children uses that detract from the pedes- at transportation, safety issues, intersection of Lorain Avenue and transit waiting area for Bus Rapid and the like. trian-oriented character of the retail development, housing, and Fulton Road so that Fulton meets Transit” — in the style of the Health “These are the kinds of things district — automobile sales lots, parks and recreational space. Lorain at a right angle rather than Line on the East Side — on Lorain that make a big difference in how gas stations, car washes and restau- The focus on Lorain is badly diagonally. That would make the adjacent to the Breen Center park- people perceive the place they rant drive-throughs among them. needed, said Eric Wobser, executive intersection safer, improve the ing lot on the iconic St. Ignatius High live,” he said. “It’s about creating an environ- director of Ohio City Inc., the pedestrian environment and create School campus. Another possibility The park — the most visible and ment that allows for dynamic spaces” community development organi- opportunities for more green space, is a Red Line stop at Fulton Road. heavily used public space within in Ohio City, Mr. Cimperman said. zation that serves as a fulcrum for as well as making it more con- “The easier it is to connect from the Market District — is getting a initiatives aimed at improving the ducive for private development. Ohio City to downtown and other $1.5 million makeover from the The West Side’s main street neighborhood. parts of the region, the better the city. The renovation incorporates A major element of helping to “As a corridor, Lorain has not Making connections opportunity for growth,” Mr. design ideas from Cleveland Public create those dynamic spaces and functioned well for a long time,” Mr. Development in Ohio City, Cimperman said. Art and ParkWorks, and it will double generally raising the quality of life Wobser said. “A more vibrant Lorain which boasts more than 12,000 Physical and infrastructure the amount of programmable in Ohio City is a renewed focus on Avenue would bring people together.” residents, is helping the neighbor- connections are important to the space in the park. Separately, RTA the health of Lorain Avenue and Broadly speaking, Launch Lorain hood become something of a rarity neighborhood, but so are those is investing $80,000 to replace the neighborhood south of Lorain is designed to produce a long-term in Cleveland — an area with nearly among businesses and nonprofits. outdated bus shelters in the park — a more working-class area, with plan that would create better 24-hour activity on some days, Natalie Leek-Nelson, president with more modern facilities. longer-term residents, than the more connections to adjacent residential starting with the West Side Market’s and CEO of crisis nursery Providence To make the neighborhood more gentrified area north of Lorain. areas along Lorain; bolster private opening at 7 a.m. and going to the House, is heading an effort to appealing to young families, Mr. Last November, Ohio City Inc. investments already occurring there; closing of bars early the next morning. foster more collaboration among Wobser envisions the creation of and Kent State University’s Cleve- and identify new opportunities for That kind of activity inevitably nonprofits based in Ohio City. In youth sports leagues in, say, baseball land Urban Design Collaborative development and urban amenities. brings parking challenges. Ohio January, she said, several Ohio City and soccer. Ohio City families cur- kicked off what they called a com- There’s no shortage of ideas for City Inc. is in the midst of a study nonprofits began a program to reduce rently look to nearby suburbs for munity design charrette — a term reaching those goals, Mr. Wobser said. of parking issues near the West their costs by jointly purchasing those amenities, he said. for a brief, intense planning exer- “I think what you see from the Side Market. Depending on its office supplies. Next up could be Mr. Cimperman, for one, thinks cise — dubbed Launch Lorain to community is a sense that yes, things findings, the group could begin a joint buys of informational technology of the neighborhood as “a potential begin rethinking development are getting better, but there are a lot push to construct a parking garage services and equipment as well as giant that’s just woken up. along Lorain from West 20th Street of things that still need to be done that would make it easier for visitors janitorial and sanitation supplies. “But we can’t lose sight of how to West 52nd, south to Interstate 90. to reach our potential,” he said. to come to the neighborhood. “I think we’re just starting to see much work has to be done,” he said. ■ MARKET PLACE

Ohio Savings Bank Opening in 1901 From the making and Ohio City, West 25th Street “remaking” of Ohio City, Ohio Savings Bank will be here.

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Have a retail business or business idea? ROOM SERVICE We want you to be a part of the Ohio City Market District! 2078 West 25th Street R/S boutique offers Jewelry, Home Goods, Cleveland, OH 44113 Gifts and we now carry Women’s Apparel in Win up to $20,000 to open or grow your business in the Ohio City Market District (216) 696-6220 addition to our popular Cleveland-centric t- by applying for the Charter One Growing Communities shirts and gifts for Men and Women. R/S also 2012 Ohio City Market District Small Business Development Grant Competition. Visit www.ohiocity.org for RFP and details plays host to the MADE IN THE 216 event every Brought to you by: holiday season. 20120402-NEWS--19-NAT-CCI-CL_-- 3/30/2012 3:38 PM Page 1

APRIL 2 - 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 Rents: Rising rates have yet to create construction boom

continued from PAGE 3 rent for upwards of $400 monthly, water charge. “You’re not advertising ment is widely mistrusted in the The other factor will be how said. “In the 10 years that I have he could not ask for an increase $625 a month. It’s better at $595.” wake of the housing bust. much building lenders will allow done this, it’s the strongest that I without risking losing tenants. Marcus & Millichap statistics also Moreover, foreclosures and the apartment developers to do. Modest have seen the market in terms of a “People are still sensitive to show the Cleveland multifamily difficulty in qualifying for new rents relative to other markets little bit of a price increase. It’s still rents,” Mr. Niederst said. market recovered quickly from the home loans under stricter credit make typical Northeast Ohio apart- a price-sensitive market.” 2008 recession — which wasn’t the requirements are keeping some ment construction top out at a few However, the ability to push Some take utility route case in commercial and industrial people in apartments who other- hundred units a year. Mr. Barron rents upward is uneven. Instead of hiking rents in its markets — and apartment rents wise would gravitate to buying said, based on recent chats with “Some owners will not experience family-owned portfolio of more recovered faster than in prior houses. developers, he counts 1,000 more this,” Mr. Barron said. “In areas than 6,000 apartments, NM in downturns here. units under development. However, with higher income or higher occu- January implemented a program to For instance, the prior high effec- Good times here to stay? he thinks it would be several years pancy, owners can raise rents a charge tenants for their sewer and tive rent was $705 in 2008. It A question that will bedevil before occupancies slip. little more than in lower-income or water bills. That change means plunged almost 4% in 2009 to $679 regional multifamily property owners Ralph McGreevy, executive vice lower-occupancy areas. In a working tenants may pay as much as $20 monthly. will be how long the good times president of the Northeast Ohio class or low-income area, a $10- to monthly for those utilities, which The spike in apartment occu- last. Apartment Association, said owners $20-a-month rent increase will helped the company as much as a pancies and the attendant increase Relaxed mortgage lending criteria have little choice but to hike rents cause someone to move next door rent hike. in rents have resulted in part from may take the edge off current occu- when the market allows it. to get a lower rent.” “Raise rents and you have to the children of baby boomers pancies, though not to the degree “It’s incumbent on them to make David Niederst, CEO of NM advertise a larger rent number,” graduating from college — the so- that freewheeling residential lending money when they can,” he said. Residential in Fairview Park, said in Mr. Niederst said in explaining the called “echo” boom — at a time that created the housing bust made “The time of high vacancy will properties he owns in Parma that decision to go with a sewer and when owning a house as an invest- owners suffer. come back at some point.” ■

Heights: Company’s finances healthier LeanDog: Growth follows continued from PAGE 1 typical Cedar Fair style, investing acceptance of agile practice millions in new rides and attractions at its parks. continued from PAGE 3 at a Utah ski lodge in 2001, is meant “As a company, because we have from the Cleveland-Cuyahoga County to help developers communicate such high repeat visitation, you Port Authority. better, build software faster and sometimes get a little less focused on Now the two men — working adapt to change. reminding people to come back,” through a joint venture called No. LeanDog helped MRI Software Mr. Ouimet said. “We think it’s 225 LLC, named for the barge’s LLC implement agile practices last important to remind people of the identification number — are reno- year. The Highland Hills-based real great day they have here.” vating the 120-year-old old boat, estate software maker knew it wanted which housed Hornblower’s Barge to embrace agile methods but sought Making the pitch for 2012 & Grill until 2006. out LeanDog to help them make the The 2012 season comes on the heels The city of Cleveland gave the transition, said Adam Wallace, vice of two record years for the amusement holding company a $180,000 grant president of product development park giant, which in 2011 brought in and a $95,000 loan to help pay for at MRI. 23.4 million guests across its 17 parks, the purchase and the renovations, Now instead of working in cubicles, up 2.6%, from the company’s record which Mr. Stahl said should cost MRI software development teams attendance of 22.8 million in 2010. The Millennium about $600,000 total. work together in larger open areas. “All indications now are positive Force at Cedar When finished, the barge will The teams decide together how they we should be able to do a third Point have 4,500 square feet of open office will divvy up project work, a task that record year,” Mr. Ouimet said. space, a third-floor bar, showers for had been handled by managers. PHOTO PROVIDED “Three record years in a row don’t employees who run or ride bicycles MRI developers also are testing pieces happen very often. I remind my board to work, and a deck with docks for of code sooner and more often, of that, but they certainly remind me the right guy to take this company teenagers — into the park, according those who would rather come to work helping them catch errors as fast as that we have the great parks to do it.” from a great level to an even better to Dennis Speigel, president of by boat. The environment is intended possible. To keep those numbers from soft- place over the next couple of years.” International Theme Park Services to spark creativity and remind Because of those changes and ening, the company is launching in its Inc., a Cincinnati-based amusement employees that they need not heed others, MRI consistently has been parks’ websites a new e-commerce Continued investment park management and consulting the status quo, Mr. Stahl said. able to deliver new software prod- platform, which will allow customers James Hardiman, an analyst at firm. “Why do I have to work in a cubicle? ucts and updates on time, which for the first time to bundle ticket Longbow Research in Independence, “Cedar Fair for years has been Why do I have to wear a tie?” he said. previously had been a big challenge purchases with parking passes and said Cedar Fair has cleaned up its consumed with putting in roller LeanDog and Arras Keathley will for the company, Mr. Wallace said. food offerings. Moreover, the company finances over the last few years. The coasters, but now they’re looking at split the office space, Mr. Stahl said. Plus, the number of software defects is offering a premium “fast lane” company was saddled with debt the industry and their parks in a way Plus, LeanDog plans to keep the 4,000 reported by customers has dropped ticketing option — something it tested after its 2006 acquisition of Para- that’s going to increase in-park square feet it leases on the second since MRI made the conversion, successfully last year at its Kings mount Parks, which included Kings spending and the length of stay by floor of the terminal at Burke Lake- which would have been tough without Island amusement park near Cincin- Island, for $1.2 billion right before the guests,” Mr. Speigel said. front Airport and pick up another LeanDog, he said. nati — that lets customers pay extra to the credit crisis hit. Despite a lack of new coasters in 1,000 square feet on the terminal’s bypass long lines on popular rides. “Having now emerged from those recent years at Cedar Fair’s anchor first floor. Workers scratch an itch “It all rolls up into what we call a balance sheet issues, they’re able to institution, Cedar Point, Mr. Ouimet The company tries to foster an dynamic pricing practice,” Mr. Ouimet refocus their attention in driving said the company plans to continue An agile touch entrepreneurial culture in North- said. “Let’s understand who our con- sales growth and ultimately earn- to reinvest in the park because LeanDog’s sales hit $5.3 million east Ohio, Mr. Stahl said. LeanDog sumers are, what benefits or features ings growth,” Mr. Hardiman said. that’s what his customers expect. in 2011, more than double the $2.4 has helped organize events for local they want and be able to offer them the Another way Cedar Fair plans to Over time, Mr. Ouimet expects million in sales in 2010, Mr. Stahl software developers, including Cleve- whole spectrum on a pricing curve.” grow is by investing $90 million rides that have reached the end of said. The company so far has rein- land GiveCamp, a two-day event “Fast lane” ticketing is by no means across its 17 parks for the 2012 season. their useful lives to be removed and vested all of its profits, he said. where dozens of programmers get a new concept, as it’s employed by The company’s largest investment replaced with new attractions. Also, The company, founded in 2008, together to build free software for Cedar Fair competitors such as Six is on the Leviathan, a $27 million, he expects Cedar Point to start to attracts customers almost exclusively area nonprofits. And three weeks Flags, Anheuser-Busch Parks and 306-foot-tall steel roller coaster at encourage customers to spend by word-of-mouth. A few of the ago it started offering to develop Mr. Ouimet’s former employer, Walt Canada’s Wonderland in Toronto. more time at the park’s surrounding company’s executives build visibility software for startups in exchange Disney Co. While Cedar Point isn’t getting beaches, which the company owns. for LeanDog by speaking about agile for equity or convertible debt. Scott Hamann, an analyst at quite the prize this year, the company “We have plenty of room to expand, software development methods at LeanDog encourages its employees KeyBanc Capital Markets in Cleve- is investing $1 million in a new but we have to be creative about it,” various conferences. Almost all of the to start their own companies, too, land, said Cedar Fair’s dynamic pricing animatronic dinosaur exhibit that he noted. company’s customers come through even if it means they can only work strategy is just one of the fresh ideas will be nestled near the Millennium Despite all the talk about keeping contacts made at conferences, client part time, Mr. Stahl said. Mr. Ouimet has brought to Cedar Force coaster. attendance and profitability up, Mr. referrals and personal relationships. “Everybody has this entrepre- Fair from his days at Disney. Also, the company is investing Ouimet reminds his employees that Many of those customers turn to neurial itch,” he said. The company’s former manage- several million dollars in a new late- people frequent the company’s LeanDog for both coaching in agile One of LeanDog’s next goals is to ment, Mr. Hamann noted, hadn’t night light show at Cedar Point parks for one reason: They’re fun. practices and software develop- open an office in another state, seized on the opportunity to capitalize dubbed “Luminosity,” which Mr. “We deliver an engaging product ment, which has helped drive sales which should help the company on incremental revenue that could Ouimet described as a “giant dance that people look forward to all year growth, Mr. Stahl said. find customers and talent in another be generated through initiatives like party” with fireworks. round,” Mr. Ouimet said. “Some- The company also benefits from region, Mr. Stahl said. “fast lane” ticketing. Part of the thinking behind the times we get caught up in the busi- a growing acceptance of agile soft- If things go as planned, the new “Matt brings a lot of energy,” Mr. “Luminosity” show is to keep guests ness side of things, and we have to ware development practices. The office will float, he added. Hamann said “There’s a whole lot of in the park longer and ultimately remember to have a little fun along concept, first described in a mani- “If it’s up to me … we’re going to opportunity out there, and I think he’s bring more families — not just the way.” ■ festo written by software developers find another boat,” he said. ■ 20120402-NEWS--20-NAT-CCI-CL_-- 3/30/2012 9:39 AM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 2 - 8, 2012 Insurers: Insiders say industry has a perception problem

continued from PAGE 1 said Mr. Hazen, who also is past financial service competitors have grams. An important piece of that works and are an important part of viable career path to college and president of the Independent Insur- had this down pat for years.” effort is overcoming how millennials the economy.” high school students. ance Agents of Ohio, which provided David Jacobs, president and — those under 30 years old — per- The Ohio Insurance Institute, a At one point, Mr. Hazen said five $20,000 in seed money to jump- chief operations officer of the ceive the insurance industry. Columbus-based trade association, universities in Ohio offered degrees in start the program. Cleveland-based insurance brokerage “This is not the sexiest industry is one group that has tasked itself firm Oswald Cos., admits one of the in the world, and that makes it a with tackling the perception issue, insurance studies. All were disbanded Mr. Jacobs’ wrong move due to a lack of student interest. “bigger mistakes” he made was to challenge,” Oswald’s Mr. Jacobs said. according to Mitch Wilson, the But because of the anticipated However, a dearth in academic cut at the peak of the recession the “We need to go back and funda- group’s vice president of public work force shortage, Mr. Hazen offerings isn’t the only reason company’s professional associates mentally explain what the industry information and education. approached Kent State about offering young folks aren’t flocking toward program, a two-year training pro- does offer.” The group over the last year has an undergraduate program in the insurance careers. gram for recent college graduates. According to a recent survey by been putting together a marketing field. The program, which is still Britton-Gallagher & Associates “We didn’t budget for training as the Assurex Global, a Columbus-based campaign, which would include a under development, could launch CEO Lee Stacey said professional we should have,” said Mr. Jacobs, network of independent insurance large online presence, to explain to as soon as next fall at the Salem development programs are some- whose company also is helping and benefits brokers, only 24% of young people the range of career campus in Columbiana County what rare in the insurance industry develop Kent’s curriculum. “We need millennials surveyed have positive options available in the industry. and eventually expand throughout compared with other specialties in to get that program back and rolling.” feelings about the insurance industry, The website, Mr. Wilson said, is the financial sector. Banks, Mr. Stacey compared with 43% of baby boomers expected to showcase YouTube the Kent State system. We’re cool, too “We just think everybody is going noted, for years have employed with a favorable impression. videos of young people with a variety to win at this if we can graduate such programs to cultivate their While boosting educational pro- “The bottom line is we help of careers in the industry. students with a four-year degree in work forces for long careers. grams could draw additional young people,” Huntington’s Mr. Hazen “Our industry as a whole needs insurance because the jobs are out “I think this is one of the single people into the profession, the said. “This is the approach we have to do a better job of saying, ‘Here is there for them, which is not neces- largest concerns as an industry we industry faces a larger hurdle in to take to the young people we would the excitement. Look what you can sarily the case with other graduates,” face,” Mr. Stacey said. “All of our getting them to enroll in such pro- like to market to. We really do good do in this career,’” Mr. Wilson said. ■

Renewing a bank’s shareholder holders, are asked to add names of base also creates greater growth prospective shareholders to their Investor: Shareholders help capital levels opportunities, Mr. Schmidt said, banks’ respective databases. Those noting, “The best customer of the individuals are contacted promptly continued from PAGE 3 “They don’t have a loyalty to this to have is a high demand of people bank is a shareholder.” by the respective bank’s market maker, in doing so. bank,” said Mr. McKeon, whose bank who want to buy the stock, waiting Those banks that don’t refresh which buys and resells the banks’ Aging shareholder demographics counts about 550 shareholders. if that happens, so (a sale) doesn’t their aging shareholder groups can stock as a type of middleman. is a common issue for Ohio’s commu- “They don’t have a history with this drop the price dramatically. end up merger and acquisition can- Cortland’s efforts to improve nity banks, which average more than bank. (Stock is) an item they “Is it paramount or critical to us? didates, Mr. Schmidt said. shareholder relations also have 100 years old, said Robert L. Palmer, inherited. We go from somebody No,” Mr. McKeon added. “Are we involved investor relations forums, president and CEO of the Commu- who is very loyal to this bank to, trying to do something about it? Yes.” Drumming up interest after which several people have nity Bankers Association of Ohio. ‘How do I dump this stuff?’” The need to reinvent a bank’s Both Mr. McKeon and Jim Gasior, become shareholders, Mr. Gasior One challenge is that successor For Western Reserve, which is shareholder base is continual, but president and CEO of Cortland Sav- said. Attorneys, accountants and generations that inherit stock in nearly 14 years old, the average the need to raise capital, potentially ings, have hired CAMELS Consulting commercial loan customers were community banks often aren’t person who was attracted to investing through new shareholders, is impor- to guide their stock awareness cam- among those invited. interested in retaining it. Some in the bank when it opened is nearing tant today because regulators are paigns and to build systems that Mr. Palmer of the Community are second- and third-generation or at retirement age and may want requiring increased capital levels track who wants to buy and who Bankers Association said the actions shareholders who live nowhere to liquidate his or her holdings, Mr. following the financial crisis of wants to sell their banks’ stock. of these banks to pump new share- near the banks, said Mr. Palmer, McKeon said. 2008, said Edward E. Schmidt, pres- Though Western Reserve and holder blood into their institutions whose group represents the state’s “We recognize that these people ident and CEO of CAMELS Consulting Cortland are public companies, are not unusual. 223 community banks. are aging and one way or the other Group LLC in Westerville, which their stock issues are relatively illiq- “Community banks are realizing Mr. McKeon has seen the problem will be exiting from our stock own- works with community banks on uid because they’re traded on the now more than ever that they need firsthand. ership,” he said. “So what we want capital and shareholder issues. over-the-counter market. To keep to have and strengthen that local their stock prices up, these banks awareness so they can continue to must build demand for their stock. reinvest those dollars locally and The staffs of Western Reserve and have an informed shareholder Cortland, which has 1,600 share- base,” Mr. Palmer said. ■ Crain Communications has a new home in Chicago.

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APRIL 2 - 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 Erieview: Struggles’ effect on NineTwelve District still unknown

continued from PAGE 1 remains, according to one tenant detail those factors. representation broker who spoke on Mr. Minshall said the Galleria, grounds he not be identified. which originally was built as a shop- “Look what’s happening over ping center but struggled as a retail there,” the tenant rep said of the area venue, was not included in the U.S. surrounding the building. “There’s an Bank loan because the lender would empty condo building in foreclosure mortgage only the office tower and (Avenue Tower) across the street. garage. Eaton Corp. will vacate the upper “The irony is that the most diffi- floors of Eaton Center for the cult part of the project — (the) Gal- suburbs later this year. Cliffs (Natural leria — is fixed,” Mr. Minshall said. Resources) is leaving Superior for That’s because the two-story mall is 200 Public Square.” 90% leased after recent deals with the Lizardville restaurant and the Positives among the negative YMCA of Cleveland for a new down- Yet according to Michael Deemer, town fitness center. vice president for business develop- Over the years, Mr. Minshall has ment at the nonprofit development made progress adding tenants to the group Downtown Cleveland Alliance, office building, only to see other the foreclosure at Tower at Erieview tenants disappear. does not jeopardize efforts to trans- At its acquisition in late 2002, the form the city’s former financial dis- 700,000-square-foot skyscraper had trict into the mixed-use NineTwelve a vacancy rate of 40%; today, it’s 24%. District. Except for a short-lived upswing, the STAN BULLARD “There is uncertainty at Erieview, downtown office market essentially The Tower at Erieview is the subject of a foreclosure lawsuit filed by U.S. Bank. Included in the suit are the tower and a but remember that NineTwelve was lost ground over the last decade. parking garage, though the well-known Galleria, in the foreground, is not a part of the suit. formed because of concerns by Grubb & Ellis Co. statistics show stakeholders and property owners downtown had a 22% vacancy rate at about the future of East Ninth the end of 2011, compared to 20% and 12th streets,” Mr. Deemer said. when Mr. Minshall’s group bought NineTwelve District initiatives just the building. now are gaining momentum, he Shed no tears said. Al Wiant, a founder of what The lawsuit by U.S. Bank estimates became NineTwelve and vice presi- it now is owed nearly $58 million, dent for strategic investment at Play- including late fees, interest pay- houseSquare Real Estate Services, ments and default interest payments also pooh-poohs the broader signif- dating from March 15. The bank said icance of U.S. Bank’s action. He said (/7!,/#!,3500,9#(!). it wants to collect $13,000 daily in Mr. Minshall has lacked funds to interest and default interest until the compete for tenants with other, property is foreclosed and sold. The better-heeled building owners. 7),,'2/79/5202/&)43 case is assigned to Judge Kathleen “NineTwelve is all about opportu- Ann Sutula. nity, and Erieview is another one,” Manufacturers can gain a critical competitive edge Mr. Minshall takes the strife in Mr. Wiant said. stride. If the building is recapitalized, it with one simple solution: local supply-chain sources. “I’m not going to cry about it,” he would benefit from elements Nine- said. “It’s just a series of traumatic Twelve has in the works, from ban- incidents that come with ownership. ners to new sidewalk planters. Mr. Join Crain’s and manufacturing advocacy groups The YMCA will produce a lot of Wiant said. The building enjoys some WIRE-net and MAGNET as we discuss ways to identify low-cost, benefits for tenants of Galleria and of the best views in downtown, he said, incentive for people to lease in the and might be considered for mixed high-quality logistics sources right here in Northeast Ohio. tower.” use with the addition of apartments. Mr. Minshall’s tiny troupe made Robert Redmond, a broker at the Galleria an event and party center to Cleveland office of Mohr Partners, generate more revenue from the was part of the team at a previous venue and to fill the gap created by employer that sold Mr. Minshall the problematic downtown retail in properties, and he does not count out Cleveland and other Midwest cities. It the self-made real estate investor. became a place for artwork, galleries “I think they will work something s4HURSDAY -AYs4HE2ITZ #ARLTON #LEVELAND and community events from fund- out” Mr. Redmond said. “Cooler raisers to weddings. Today, it’s also heads will prevail. If the lender takes s"REAKFAST.ETWORKINGs AM home to the offices of the Cleveland it back, who will buy it?” Metropolitan Bar Association and a Office and retail broker David s0ANEL$ISCUSSIONs AM large branch of Dollar Bank. Wagner, a co-managing director of Mr. Minshall, son of the late long- Chartwell Group, which has offices time U.S. Rep. William Minshall, was in the Tower at Erieview and repre- s2EGISTERATs#RAINS#LEVELANDCOM"REAKFAST undertaking a challenge when he sents its office and Galleria space, and his investor group shelled out mourned the timing of the foreclo- ORCONTACT*ESSICA$3NYDERAT $30 million on Dec. 31, 2002, to sure. JDSNYDER CRAINCOMOR  buy from insurer Cigna Corp. the “There are more positive things complex that developer Richard E. happening here than in a long time,” Jacobs Group had turned over to its Mr. Wagner said. “We’ve got lots of lender. proposals out. I feel as good about Ten years later, that challenge this asset as I ever have.” ■ SPONSORED BY UPCOMING EVENTS

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APRIL 2 - 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Kasich’s energy policy Give them credit for the credit union gained 10 new members MARCH 26 - APRIL 1 and eight Visa card customers.— Michelle isn’t a waste to Echogen trying something new Park The big story: The Cleveland Foundation’s ■ Mark Terzola is a fan of Gov. John Kasich’s ■ He’d done it for one credit union; why not board of directors approved $16.2 million in proposed energy policy. do it for more? The TiE that binds grants that will support initiatives in the region Of course, he’s a bit biased. Mr. Terzola is Bryce A. Roth, marketing coordinator for ranging from sustainable energy research to the chief operating officer of Echogen Power VacationLand Federal Credit Union in two contest winners transformation of Cleveland’s struggling public Systems Inc., an Akron company developing Sandusky, is well-aware that his business ■ From Réka Barabás’ point of view, two schools. Of particular note, the board signed off on a system designed to create electricity using needs to attract younger members, and he winners are better than one. a $700,000 grant to support the implementation waste heat from power plants and factories. sees social media sites as a prime place to do This year two startups won TiE Ohio’s an- of the School Transformation Plan pushed by The governor has done the company a big it. That’s why he and VacationLand CEO nual TiEQuest Ohio competition. iGuiders Cleveland Mayor Frank Jackson and Cleveland favor: One of the 10 “pillars” of his new policy Kevin J. Ralofsky founded Chatter Yak!, Inc. of Beachwood won in the category for schools CEO Eric Gordon to overhaul the under- would encourage the adoption of technologies a credit union service organization that more established startups, and Real Time performing school district. Earlier this month, that capture and reuse waste heat. specializes in social media. Imaging Technologies LLC of Brecksville the George Gund Foundation also committed Among other things, Chatter Yak! is providing won in the emerging entrepreneur catego- $700,000 to the plan, elements of which require Gov. Kasich wants the a steady new revenue ry. Thirty-eight startups applied. the approval of state lawmakers. Ohio Legislature to classify stream for VacationLand. TiE Ohio needed to divide the competi- waste heat technologies as Since its July start, the tion into two categories, said Ms. Barabás, His new Kentucky home?: Cleveland State a renewable energy source. strategic marketing service executive director of the organization, University provost and senior vice president for That would encourage util- organization has been hired which supports entrepreneurship. academic affairs Geoffrey Mearns is a finalist for ities and other large pro- by 10 credit unions, most The group will send iGuiders on to com- the president’s job at Northern Kentucky ducers of waste heat to outside of Ohio, and has a pete for $150,000 in prizes at TiEQuest Glob- University, that school adopt the technology; state few clients in the pipeline, al in Toronto. In the past, TiE Ohio often announced. Mr. Mearns, who law says utilities must get said Mr. Roth, Chatter picked companies that were too young to took on his current roles at 25% of the power they sell Yak!’s only employee. compete well, but iGuiders should be more CSU in August 2010, joins in Ohio from “advanced” sources by 2025. The organization has seen early demand competitive, Ms. Barabás said. The compa- Frostburg (Md.) State Uni- Half that power must come from “renew- for its Yak Boot Camp, through which Mr. ny has developed software designed to versity president Jonathan C. able” sources. Today, the law considers Roth teaches clients how to handle social make it easier to navigate websites and al- Gibralter and Ferris State waste heat advanced, but not renewable. media themselves, and its Yak! Tracker, a ready has raised more than $1.5 million University president David L. The change, if adopted, could mean a big software that enables businesses to run from investors. Eisler as finalists at Northern Mearns opportunity for Echogen, because Ohio’s contests on Facebook while retrieving The TiE Ohio prize package is a better fit Kentucky. Mr. Mearns previ- many power plants and factories produce “a information about those who participate. for Real Time Imaging, which is developing ously was dean of Cleveland-Marshall College bounty of waste heat,” Mr. Terzola said. He Since it began using Yak! Tracker and a system designed to give dentists more vis- of Law for more than four years. He also taught also hopes the governor’s endorsement hosting contests, Glass City Federal Credit ibility during surgeries. The package con- at Case Western Reserve University School of helps push other states to follow suit. Union outside Toledo nearly has doubled its sists of $5,000 (which the winners will split), Law. “This may turn into something that gets Facebook “likes” to more than 500, said free office space in a local business incuba- some national momentum,” he said. — Sarah Ritenour, marketing coordinator. tor, legal services and other business assis- With a name like Guilin Seamild …: J.M. Chuck Soder Following its first Facebook contest, she said tance. — Chuck Soder Smucker Co. acquired a non-controlling minority interest in Guilin Seamild Biologic Technology Development Co., a privately owned maker of oat products headquartered in Guilin in the WHAT’S NEW BEST OF THE BLOGS Guangxi province of China, for about $35 million. Smucker said Seamild’s product portfolio mainly Excerpts from recent blog entries on tree called the “Ticket Oak.” Hormel Foods consists of oatmeal sold under the Seamild CrainsCleveland.com. Corp. has a little cartoon knight named brand and is sold in retail channels throughout Sir Can A-Lot who’s a major Facebook China. Seamild operates two manufacturing Cleveland’s cheap, and presence. Diageo last May launched an ad plants, both in southern China, and it’s building campaign for its Captain Morgan rum that a plant in northern China. that’s a good thing starred a live-action Captain character, also ■ Business owners looking for inexpensive a Facebook denizen. All downhill from here: FirstEnergy Corp. places to operate should consider Cincinnati Progressive chief marketing officer Jeff agreed to be the new title sponsor for The All- and Cleveland, according to a new study by Chaney told The Journal that consumers on American Soap Box Derby in Akron. The Akron- KPMG. Facebook are more likely to bond with a based electric company entered into a three- “Cincinnati’s low costs for facility leasing, character than a traditional company Face- year sponsorship agreement with the Soap Box transportation and property taxes book page. Derby. Financial details were not disclosed. contributed significantly to “Consumers are less likely to have a FirstEnergy has been a longtime supporter of the THE COMPANY: OurPet’s Co., its ranking as the least- conversation with a logo or a PR guy Akron event, providing financial assistance and Fairport Harbor costly location to do on social media,” Mr. Charney said. sponsoring several cars for area racers over the business in the United Since 2008, Progressive’s TV ads years. THE PRODUCTS: New Play-N- States” among the have centered on perky sales Squeak toys country’s 27 largest clerk Flo. She now has 3.5 The missing link: OEConnection LLC in metro areas studied by million fans on Facebook, where Richfield, a provider of online systems to provide Your domestic cat is confined to the house KPMG, an audit, tax she posts comments about new car dealers and collision repair shops with all day, but he (or she) shouldn’t have to and financial advisory Progressive products. replacement parts, was chosen by Volkswagen abandon his (or her) wild side. firm. The Journal noted that characters also of America Inc. to support the automaker’s That’s the philosophy behind the Play-N- Atlanta was the second most cost- offer “a softer way to sell a product, which is ongoing collision programs. OEConnection will Squeak brand of OurPet’s Co. At the recent competitive location in the large-cities important on social media where executives conduct field visits to thousands of collision repair Global Pet Expo in Orlando, Fla., the company category, followed by Orlando, Tampa and fear that blatant selling or promotion can centers and hundreds of Volkswagen dealers unveiled four new toys designed to help cats Dallas-Fort Worth, which ranked third, turn people off.” throughout the United States to promote the VW maintain their instincts as natural hunters — fourth and fifth, respectively. Genuine Advantage Parts Program. OEConnection in a safe way. Other locations that performed well were Guess we should be on said its field consultants will educate and train With no natural prey, indoor cats express Baltimore, St. Louis and Cleveland, the the lookout for lost phones Volkswagen dealers and their wholesale body their hunting instincts by chasing imaginary KPMG study found. shop accounts on CollisionLink, the company’s prey. The new toys include the Zoom Mouse The study showed Cincinnati had a cost ■ Clevelanders work harder at hanging on online parts ordering and fulfillment system. (randomly moves around the floor); the index of 95.9, representing business costs to their cell phone. Running Mouse (a mouse on the go); the 4.1% below the U.S. national baseline of A new report from mobile security firm Man about town: Performance materials Wobble Mouse (it teeter-totters); and the 100. Cleveland came in at 97.1. Lookout Labs, based on data from 15 million supplier Ferro Corp. named Jeffrey L. Rutherford, Shakin’ Mouse (pull the tail and it shakes). users who downloaded the company’s app an executive at Park-Ohio Holdings Corp., as All Play-N-Squeak toys feature an electronic that locates lost devices, found Cleveland is vice president and chief financial officer. He On Facebook, companies sound module that produces “an amazingly one of the markets with the highest percent- starts the job today, April 2. Mr. Rutherford, 51, show their true character realistic mouse ‘squeak’ that cats love,” ages of people who lose their phones. will report to James F. Kirsch, Ferro’s chairman, OurPet’s says. The company says the squeak ■ The chief marketing officer of Progressive RedOrbit.com noted that the study esti- president and CEO. He had been vice president “is produced at the same frequency and level Corp. was quoted in a Wall Street Journal mates Americans “lost roughly $30 billion and CFO at Park-Ohio, a provider of international as a real field mouse.” story about companies’ efforts to use worth of mobile phones last year.” supply chain logistics services and a diversified The Play-N-Squeak toys aim for mental and Facebook to get consumers to bond with Philadelphians lose their phones most manufacturer of highly engineered products, physical stimulation to keep cats “alert, agile corporate characters. frequently, followed by residents of Seattle, since July 2008. and healthy,” according to OurPet’s. StubHub is using the giant social media Oakland, Long Beach, Newark, Detroit, For information, visit www.OurPets.com. site to try to get you interested in a talking Cleveland, Baltimore, New York and Boston. 20120402-NEWS--24-NAT-CCI-CL_-- 3/30/2012 3:49 PM Page 1