Construction Jobs Conundrum Jumpstart Model Is Large-Scale Commercial Projects Boost Employment in NE Ohio, but Whether Work Is Sustainable Remains to Be Seen Raising

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VOL. 32, NO. 11 $1.50/MARCH 14 - 20, 2011

Construction jobs conundrum JumpStart model is Large-scale commercial projects boost employment in NE Ohio, but whether work is sustainable remains to be seen raising

By STAN BULLARD INSIDE: Construction employment in Northeast [email protected] Ohio still sags. Page 9 questions elders’ torches are blazing again Higbee Building as part of it becomes a near the Cuyahoga River as the Caesars Horseshoe Casino. Investment group Flats East Bank mixed-use project In the most battered job sector of all — starts up after a two-year stall. construction — these signs of life in down- defends setup, plans PowerW shovel operators are razing buildings town Cleveland are welcome, though they at the old Cleveland Convention Center to don’t tell the full story. These big projects are forum to solicit ideas make way for a new one. Scaffolds cling to the See CONSTRUCTION Page 9 By CHUCK SODER [email protected]

Is JumpStart Inc. doing a good job? Three area entrepreneurs have said “no” in a loud way — by sending a long chain of e-mails to business leaders and politicians throughout Northeast Ohio. Among other com- plaints, they argue in the e-mails that the nonprofit spends too much on salaries, too little on investing and hasn’t created enough jobs. So how does JumpStart, which assists and invests in startup companies in the region, spend its money? And what are the people of North- east Ohio getting from the organization, which receives much of its money from public sources? In the e-mails, the three entrepreneurs — Visual Evidence/E-Discovery LLC co-founder Ron Copfer, Charitee Golf LLC founder Mike Burkons and Broadband Mechanics founder Marc Canter — asked JumpStart officials to answer a long list of questions revolving around those two themes. In response, JumpStart plans to hold a public forum next Monday, March 21, at Corporate College East. The forum is meant to spur discussion about ideas and opportunities, and “to MARC GOLUB answer questions about JumpStart Cranes moving dirt at the site of the Cleveland medical mart are a welcome sight for the battered construction industry. given all its changes over the last year,” JumpStart CEO Ray Leach wrote in an e-mail addressed to people associated with the group. “What we’d look to do is stream- The nonprofit has changed in the last Charter university idea intrigues schools line the operations of universities couple years. It employs 47, up from and give them authority to run on 28 when the group filed its IRS Form their own judgment,” Mr. Petro told New chancellor sees ways versities into quasi-private sities,” an arrangement Crain’s Cleveland Business in an See JUMPSTART Page 6 institutions, and his pitch has that would offer the schools interview. to improve operations piqued the interest of edu- more autonomy in exchange Northeast Ohio’s higher educa- INSIDE cation leaders in the region for a smaller — but pre- tion leaders have griped for years By TIMOTHY MAGAW who would like to be freed dictable — amount of state about state regulations under which The West Side Market fosters [email protected] from a barrage of red tape. financial support, according they operate, and they have expressed small business development and Although the idea still is to Jim Petro, who today, their desire to function more like expansion, and activity is expected Ohio’s new higher education chief amorphous, the plan is to March 14, takes over as private businesses. One such burden to increase as its centennial nears. has floated the idea of turning some allow some institutions to chancellor of the Ohio See Small Business, Page 18. of the state’s public colleges and uni- evolve into “charter univer- Petro Board of Regents. See PETRO Page 8 11

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2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011 COMING NEXT WEEK THE NEW NORMAL? Budgeted salary increases for staff at U.S. companies are Save your energy rising again, but they still haven’t cracked 3% since the start of the recession in 2008, according to an analysis by Hewitt Building owners are being challenged by Associates. The firm reports employers project salary 700 W. St. Clair Ave., Suite 310, rising energy costs. Forest City Enterprises, increases of 2.8% this year, higher than each of the last two Cleveland, OH 44113-1230 years but still below the past two decades. Here’s how the Phone: (216) 522-1383 for one, has received grants for upgrades budgeted salary increase numbers break down from 2008 Fax: (216) 694-4264 at Tower City (right). We analyze the to now, and at three-year intervals prior to 2008: www.crainscleveland.com issue and more in next week’s special Year Budgeted salary increase Publisher/editorial director: real estate section. Brian D. Tucker ([email protected]) 2011 2.8% Editor: FILE PHOTO/MARC GOLUB Mark Dodosh ([email protected]) 2010 2.5 Managing editor: Scott Suttell ([email protected]) REGULAR FEATURES 2009 1.8 Sections editor: Amy Ann Stoessel ([email protected]) Best of the Blogs ...... 26 Letters ...... 10 2008 3.7 Assistant editors: Joel Hammond ([email protected]) Big Issue ...... 11 List: Credit unions...... 24 2005 3.6 Sports Classified ...... 25 Reporters’ Notebook...... 26 Kathy Carr ([email protected]) 2002 3.6 Marketing and food Editorial ...... 10 The Week ...... 26 Senior reporter: Going Places ...... 16 What’s New...... 26 1999 4.2 Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Michelle Park ([email protected]) Finance unlock Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing/Events manager: your Christian Hendricks ([email protected]) Marketing/Events Coordinator: Jessica Snyder ([email protected]) Advertising sales director: Mike Malley ([email protected]) company’s Account executives: Adam Mandell ([email protected]) Dirk Kruger ([email protected]) Nicole Mastrangelo ([email protected]) Dawn Donegan ([email protected]) Business development manager & potential classified advertising: Genny Donley ([email protected]) Office coordinator: At KeyBank, our business bankers tailor Toni Coleman ([email protected]) unique financing strategies to help you take Web/Print production director: your business wherever you want it to go. Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) We help you get the funds to buy a new Graphic designer: building or renovate existing space, pay for Lauren M. Rafferty ([email protected]) new equipment or upgrade technology. We Billing: Susan Jaranowski, 313-446-6024 also help protect against fraud, manage ([email protected]) your cash flow and make sure your payroll Credit: Todd Masura, 313-446-6097 is always accurate. ([email protected]) Circulation manager: Whatever you need, we offer the kind of Erin Miller ([email protected]) Customer service manager: straightforward advice to help take care of Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) all the things that matter most. 1-877-824-9373 Crain Communications Inc. go to key.com/business Keith E. Crain: Chairman call 877-KEY2BIZ Rance Crain: President Merrilee Crain: Secretary call Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Kathy Henry: Corporate circulation/audience development director G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996)

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MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Tuition reimbursement levels drop locally specify the breadth of the reduc- view,” Mr. Conway said. “Human Employers cut back on tool used for recruitment, retention tion, but said it was “nothing of capital is one of our most important major proportions.” The change was engines that drive the success and By TIMOTHY MAGAW incentives to recruit and retain this year are offering such pro- due to the economic challenges growth of the company. That’s our [email protected] talented workers, but the number grams, compared with 34% in 2007. facing the paintmaker after the people. It’s all about our people.” of local companies offering full Also, the average amount employers downturn hit. Although not as many companies Earning an MBA or law degree on tuition reimbursement has declined are willing to reimburse has fallen Nonetheless, Sherwin-Williams cover the entirety of the costs of your employer’s tab is becoming a sharply in response to the crippling markedly, to $2,653 in 2011, down still contributes up to $4,000 a year workers’ continuing education, perk of the past, as many Northeast recession. 29% from $3,750 in 2007. to each of its employees who con- some observers say that change isn’t Ohio companies have chosen to A new survey from the Employers Sherwin-Williams Co., for one, tinue their education, Mr. Conway entirely a bad thing because it trim back their tuition reimburse- Resource Council, a human resources has scaled back its tuition reim- said, which is far more than the forces employees to have a financial ment programs. organization in Mayfield Village, bursement program, spokesman average amount employers kick in. stake in their education. Employers long have used such found only 17% of local companies Mike Conway said. He wouldn’t “The company takes the long See TUITION Page 7

THE WEEK INSIGHT IN QUOTES “In general, there is OMG: Law reason to be more optimistic. These firms, banks projects are certainly helping. But it’s still join push to insufficient to say we’re busy again.” social media —Thomas Laird, senior vice president and regional manager Typically conservative of Gilbane Building Co.’s Cleve- land office. Page One companies find value

RENDERINGS PROVIDED By MICHELLE PARK Fairmount Properties’ on-campus projects include a $12 million building at the University of Toledo (above) near the [email protected] “We would like to Toledo Mud Hens’ stadium and a $97 million project at the gateway to the University of Rochester and Medical Cen- ter in Rochester, N.Y. (below). operate using business Though many of their rivals remain absent from the electronic marketing principles that involve frontier, a handful of banks and law the least government firms are jumping on the social A QUICK STUDY media bandwagon. interference and the Cleveland’s KeyBank, for one, least government started tweeting on Twitter in late In difficult property market, Cleveland developer January and launched its Facebook regulation that adds page in late February. Likewise, Fifth Third Bank started tweeting last layers of bureaucracy Fairmount Properties finds refuge on campus November, a few months after the on top of our own Cincinnati-based bank hired a social By STAN BULLARD opments and has lined up a third in media strategist to implement social bureaucracy.” [email protected] upstate New York. media programs. — Lester Lefton, president, Kent Fairmount is cued up to start Among local law firms, only a few State University. Page One uring the last three years, construction by summer — provided are active in social media, including as the recession and the it can close financing — on the $30 McDonald Hopkins LLC, Squire, worst property market of million downtown Kent revitaliza- Sanders & Dempsey and Benesch, the past half century tion project it has worked on with Friedlander, Coplan & Aronoff LLP. “The West Side Market Dstymied most realty development, Kent State University and the city Some other firms, though, are eyeing Fairmount Properties used the time of Kent. It also recently won compe- their options. feeds the system and to go back to college. titions to develop a $97 million pro- the community. It is The Cleveland-based developer, ject at the gateway to the University INSIDE: Examples of how KeyBank best known as a partner to Wolstein of Rochester and Medical Center in and Fifth Third Bank handle customer really like the sun, Group in the $270 million Flats East Rochester, N.Y., and a $12 million service on Twitter. Page 12 and all these busi- Bank Neighborhood office-hotel building with the University of Toledo project in downtown, is about to near the Toledo Mud Hens’ minor A competitive assessment by Key- nesses are like all graduate to construction two major league baseball ballpark. Bank revealed there are many in the these wonderful plan- mixed-use college town-style devel- See FAIRMOUNT Page 25 financial services sector that don’t have a social media presence, said ets orbiting around Karen Haefling, KeyBank’s chief marketing and communications the sun.” officer. — Cleveland City Councilman “I would have liked to have been Joe Cimperman. Page 18 out there a little sooner, but we took the time to make sure we are prepared,” she said. Ms. Haefling noted proudly March “If you somehow get a 1 that KeyBank’s Facebook page had negative review or been “liked” more than 620 times. (Less than a week later, that number message, you’re not topped 700.) That’s important, she said, because the more people just losing one engage and interact with a company, customer. … You’re the more likely they are to do business with it. potentially losing “We’re helping clients in a channel hundreds or thou- that they care about,” Ms. Haefling said. “People are going there to learn sands.” about companies. To be absent from — Terry Daugherty, an assistant that conversation did not seem like professor in the marketing a wise strategy.” department at the University of See SOCIAL Page 12 Akron. Page 18 20110314-NEWS--4-NAT-CCI-CL_-- 3/11/2011 11:31 AM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011 Cleveland’s stalled foreclosure lawsuit plays out at film festival But you’ll have to “We feel if we get a chance to ... corroborate our allegations, that’s when our buy a ticket to find case will take off.” – Josh Cohen, partner, Cohen, Rosenthal & Kramer out the jury’s verdict LLP, and lead actor in documentary, “Cleveland vs. Wall Street” By JAY MILLER [email protected] from Swiss director Jean-Stephane crisis and the deterioration of Bron, Mr. Cohen was able to argue neighborhoods were a foreseeable Cleveland attorney Josh Cohen before a mock jury that 21 of the consequence of selling mortgages may never get a chance to try what nation’s largest commercial and to investors and the banks’ lax lending would be the biggest case of his career investment banks should bear some and processing procedures. in front of a real jury. financial responsibility for the prob- “We haven’t gotten a chance to But thanks to “Cleveland vs. Wall lems created in Cleveland neighbor- address the merits of the case,” he Street,” a documentary-style film hoods by the subprime mortgage said. “We just feel if we get a chance crisis. to do discovery and get a chance to Of course, the jury was cast by corroborate our allegations, that’s Mr. Bron, and the trial was held on when our case will take off.” weekends when real courts are In the meantime, Mr. Cohen took closed. The film will be screened Mr. Bron’s offer to star in the movie, April 2 at the coming Cleveland or more accurately, present his case International Film Festival. on film. “Cleveland vs. Wall Street” was A small news article first piqued first shown last year at the Cannes the director’s interest in making the Film Festival, where it qualified for movie. the prestigious Directors Fortnight “We decided Cleveland was the series. Its reviews have been mixed. epicenter of the (mortgage) crisis,” Said Variety¸ the show-business Mr. Bron told an interviewer last bible, “(T)he film’s strong suit— August on France 24, an interna- namely, that it simply documents tional news service that is broadcast the trial as it runs its course — is and streamed in three languages. also its greatest weakness, as the legal Initially, Mr. Bron hoped to film proceedings never reach the pitch the actual trial, “but we realized the of an edge-of-your-seat courtroom case would be drawn out and tech- thriller, and viewers will have to nical.” connect some of the dots themselves.” So he settled for an unscripted Mr. Cohen asked that the verdict mock trial before a jury of eight men of the mock jury not be disclosed. and women. He leased out the old The real case, which began in Cuyahoga County Court House for Cuyahoga County Common Pleas three weekends with Thomas Poko- Court in 2008 before it was moved rny, a retired Cuyahoga County to U.S. District Court in Cleveland, Common Pleas Court judge, in a is City of Cleveland v. Ameriquest, featured role as presiding judge. et al. In it, the city argues that the Witnesses included home owners banks created a public nuisance for who lost their homes and Cleveland which Cleveland is entitled com- City Councilman Anthony Bran- pensation. catelli, whose Slavic Village ward Mr. Cohen, a partner in Cohen, has been devastated by the mortgage Rosenthal & Kramer LLP in Cleve- meltdown. land’s Warehouse District, is lead Mr. Cohen also was supported, counsel for the city in the real case, on screen and off, by Cleveland and, as a result, the star of the attorney Mark Stanton, with some documentary. assistance from the city’s law “It’s not a natural thing to be on department and from Mr. Cohen’s film, but they did a good job of law firm colleagues. putting us at ease with the camera,” the veteran attorney said. “When Fake trial is real work you see the movie for the first time The film cuts from courtroom and you see yourself on film, you go, scenes to interviews with home- ‘Oh man!” owners and community activists “I’m not giving up my day job,” who are fighting to keep their he added. neighborhoods from crumbling. Though the director chose which Visiting the epicenter witnesses would testify based on At the moment, City of Cleveland their ability to advance the story of v. Ameriquest is in appellate limbo his movie, Mr. Cohen took his mock because the trial judge dismissed trial preparation seriously. the case in May 2009 on a procedural “It’s been an interesting sort of point. After the federal Sixth Circuit thing,” he said. “The movie was a Court of Appeals denied his appeal bigtime commitment.” last July, Mr. Cohen petitioned the So he relished the opportunity to U.S. Supreme Court to review that present some of the evidence he ruling. gathered over the last three years for Mr. Cohen realizes the prospects a case knows he may never get to try. of the Supreme Court agreeing to “It became competitive in the GOOD HEALTH IS A GREAT BUSINESS MODEL. hear the case, much less deciding to way you would in a real trial, though return the case to the trial court, are you’re not used to getting two takes Good health and a safe work environment are always good for business. Which small. Still, Mr. Cohen said he hopes or three takes,” he said. “You think is why we encourage the employers who choose us to implement programs the high court will embrace his you nail something and then you arguments that the foreclosure have to do it again.” ■ that increase physical activity and decrease daily stress in the workplace. Because keeping employees healthy and happy is not only good for your bottom line, it’s good for theirs. Learn more at businessnet.kp.org. Volume 32, Number 11 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com- bined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2011 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877- 824-9373.

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MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Miami-style club, upscale restaurants on tap for Flats East Bank

population shrinks. He noted some may be room for restaurant growth Whether Cleveland can of the Flats East Bank food business if the new medical merchandise may come from the movement mart and Cleveland Convention stomach more eateries to that neighborhood of Ernst & Center are successful. raises some concern Young and other downtown “With convention centers, once tenants, the employees of which businesses are done for the day, already are eating somewhere else they entertain their clients at By STAN BULLARD downtown. restaurants,” Mr. Berebitsky said. [email protected] “We don’t have as many people Contractors are at work on an living downtown as Chicago, so the office building, the hotel and parking Smells of fine dining at four restaurants become destination- garages at Flats East Bank after restaurants and the sounds of a oriented. They do well Fridays and Wolstein Group and Fairmount seasonal riverfront nightclub could Saturdays, but there is not enough secured $250 million in financing emanate from the $270 million Flats neighborhood business during the for the project’s first phase last East Bank mixed-use project, which week,” said Mr. Berebitsky, who December. is starting to rise near the dirt that is co-chairs SS&G’s restaurant prac- The financing encompasses all that remains of the former bars tice, which serves several hundred more than 30 sources of funds, from and nightclubs that lined Old River restaurants. federal and local grants to a Wells Road. But, Mr. Berebitsky said, there Fargo bank loan. ■ RENDERING PROVIDED However, the Wolstein Group and Fairmount Properties, the developers of Flats East Bank, do not like the comparison of what they’re planning in downtown Cleveland to the failed Flats district north of Main Avenue they razed three years ago. “This is a completely different kind of setting,” said Randy Rutten- berg, a Fairmount principal. “There is a 150-room hotel, an office building and future residential that will give it a completely different foundation as opposed to a row of clubs. We’re being very careful about our selection of operators. We’re looking to create a unique entertainment destination.” A tantalizing part of the plan calls for an outdoor entertainment area near the project’s planned urban park, sand volleyball courts and a rebuilt riverfront that would offer dining and drinks in a casual, open- air setting. The large, green open space of the urban park was substituted for residential portions of Flats East Bank when the original plan for the project was split into phases to reduce its cost and increase the ability to finance it during the recession and credit crunch. The planned nightclub is “the type of club you’d find only in Los Angeles, New York and Miami,” Mr. Rutten- berg said. He compared the concept to Nikki Beach, an oceanfront beach club and entertainment center in the South Beach section of Miami Beach. On the lower level of the building that would house an Aloft Hotel fronting West Tenth Street, plans call for four restaurants. They would include an upscale restaurant featuring steaks, a wine bar with small-plate food offerings, a Thai or Mexican restaurant and a moz- zarella bar — an upscale Italian restaurant featuring foods with the distinctive cheese. Another location on West Tenth would house a tavern. Mr. Ruttenberg said in a phone interview last Wednesday, March 9, that Flats East Bank has letters of intent with two of the restaurant operators, but he declined to identify them because the leases are not final. Greater details of the restaurants, such as seat counts, are not set. The potential resurgence of Flats restaurants resurrects the question of how many restaurants downtown Cleveland can support. How many is too many? Adam Berebitsky, managing director of the SS&G accounting firm’s Cleveland office, said he worries about more restaurants going in downtown as the city’s 20110314-NEWS--6-NAT-CCI-CL_-- 3/11/2011 3:26 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011

A-plus job” helping companies that e-mails say, but he changed his mind received JumpStart money after he two years ago, after meeting with JumpStart: Backers direct priorities invested in them. Mr. Leach and the JumpStart board. Still, Mr. Stack maintains that They offered him a leadership posi- continued from PAGE 1 more influence than the rest. between two departments. JumpStart and other investors are tion in the organization, which he 990 for the year that ended June 30, Of the $60.1 million committed Mr. Leach received about $323,000 guilty of “investment by committee,” turned down. Now, Mr. Celeste 2009. Though it has offered assis- to JumpStart as of Dec. 31, $27.6 in total compensation in the fiscal which he says leads them to avoid thinks of the group as more of a ser- tance and capital to young compa- million, or 46%, came from the state’s year that ended June 30, 2010, risk. “If everybody agrees, it’s not a vice organization than an investor. nies since 2004, it started providing Third Frontier program, a technol- according to JumpStart’s most great idea,” he said. “It’s not fair to judge them as one more services in 2008 when it took ogy-focused economic develop- recent Form 990. Ten other execu- Jay Schabel helped spark the when they are in fact the other,” he over operations of the state-financed ment initiative. About half the Third tives got from $139,000 to $232,000 chain of e-mails when he told Mr. said. Canter that JumpStart declined to TechLift Advisors program, now Frontier money is designated for in- in total compensation, with their That engine started yet? part of a broader program called the vestments, while the other half compensation averaging $174,000. invest in his company, Polyflow JumpStart Entrepreneurial Network. must pay for services. To determine salaries, JumpStart’s LLC, an Akron firm trying to com- To date, companies in Jump- Its duties grew again last year JumpStart raised the rest of the compensation committee uses survey mercialize a process for turning Start’s portfolio employ 446 work- when the federal government and $60.1 million from foundations, data showing the salaries of similar- waste plastic and rubber into fuel. ers, including 330 who were hired national foundations gave money to corporations, the federal govern- size nonprofits and receives input However, Mr. Schabel said in an in- after JumpStart invested, said Cathy JumpStart to help Akron and several ment and individuals. Most of those from consultants, said committee terview he holds no grudge toward Belk, JumpStart’s chief relationship cities outside Ohio come up with dollars, however, are considered chair Mark Williams. It also reviews the group, and that JumpStart has officer. plans to boost entrepreneurship. matching funds for the Third Fron- the salaries of executives at similar done “fantastic” work helping his As for the services JumpStart pro- Now, through a new initiative called tier grants and must be used for the organizations, such as BioEnterprise company find investors and adjust vides, 23 of the 43 companies — 53% JumpStart America, the organization same purposes. Corp. of Cleveland and Innovation its business plan. — that completed a Cleveland State aims to attract more out-of-state Mr. Leach said he expects the Works of Pittsburgh, where execu- Less flattering are the comments University survey paid for by Jump- dollars, some of which likely would Third Frontier in the future to put tives also make six-figure salaries. of Aaron LeMieux, CEO of Tremont Start said its assistance was “very be spent in Ohio, Mr. Leach said. more money toward grants that can The method takes into account Electric LLC in Cleveland, who said valuable” or “moderately valuable” Those additions partly explain why be used for investments, a move he the idea that people at nonprofits “an overwhelming amount of latent in helping them grow. The rest said investments in companies make up a would support. Third Frontier execu- often will work for less because they anger” exists toward JumpStart among the services were “not valuable.” minority of JumpStart’s budget. The tive director Norm Chagnon would support the cause, Mr. Williams some in the business community. Mr. Leach said the amount of nonprofit had invested about $19.5 not confirm that statement, but he said. Still, JumpStart needs to pay Mr. LeMieux, who is trying to follow-on capital JumpStart’s port- million in 53 companies as of Dec. 31, did defend the use of Third Frontier for good talent, especially when re- commercialize a device that uses folio companies have raised — 2010, which accounts for 37% of the money for services, saying they help cruiting skills that are not common the power of movement to recharge $143.4 million as of Dec. 31 — is the $52.3 million it has spent since 2004. prepare companies for investment. in the nonprofit world. electronic gadgets, said he sees val- best indicator of success, since the In the e-mails, Mr. Copfer says several Mr. Leach agreed, adding that Jump- “The overall philosophy is really ue in the organization, but it needs average portfolio company is about times that the ratio shows a poor use Start can provide services to far to get the right people,” said Mr. to seek more feedback from entre- 3½ years old. of JumpStart’s budget. more companies than it can finance. Williams, director of corporate preneurs. It also should make sure But Scott Shane doesn’t like either “(A)re we just creating a bureau- “We’re never going to have strategy for KeyCorp. other area investors don’t turn away metric. Most high-potential startups cracy or are we supporting startups enough money to invest in enough companies just because they didn’t take six to 10 years to create many jobs, with CASH?” wrote Mr. Copfer, who companies,” Mr. Leach said. Assorted feedback get JumpStart money, said Mr. said Dr. Shane, an entrepreneurship founded multiple IT firms and did JumpStart has leeway as to how it Charles Stack, CEO of digital LeMieux, noting that JumpStart twice professor at Case Western Reserve early work to help create JumpStart. spends its service dollars, however. publishing firm Sideways LLC in turned down Tremont Electric. University. As for follow-on financing, In the e-mails, Messrs. Copfer, Cleveland, described JumpStart’s Christopher Celeste, co-founder “you don’t know whether they wouldn’t The big dog in Columbus Burkons and Canter take issue with marketing budget as money well- of Findaway World, a Solon company have gotten the money anyway.” Mr. Leach countered that Jump- the salaries of JumpStart’s top exec- spent, as it has raised the visibility that sells digital audio players under A better study would compare Start’s spending priorities are dictated utives and object that it employs a of entrepreneurship in Northeast the Playaway brand, also was turned JumpStart-assisted companies to by its financial backers. One backer, marketing staff of seven people, Ohio “a thousand percent.” He said down by JumpStart. He said he used similar firms that didn’t receive however — the state of Ohio — has including one who splits her time JumpStart’s staff also has done “an to agree with much of what the assistance, Dr. Shane said. ■ 20110314-NEWS--7-NAT-CCI-CL_-- 3/11/2011 3:26 PM Page 1

MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Tuition: Schools find companies are more attentive to education

continued from PAGE 3 its short-term courses in order to reimbursement programs is a key tuition bill, and even kicks in for program in January 2009, offering “Employees should have to make build up the ranks of its classes. He, component to developing a com- additional education expenses, such full-time employees up to $7,500 a some investment on their own,” said for one, addressed the need for pany’s work force. as books or other course materials. year for graduate studies and up to Lori Long, a professor of human teaching employees how to handle “It sends a strong message how (It helps, perhaps, that business is $5,000 a year for undergraduate resources at Baldwin-Wallace Col- difficult situations such as layoffs important they are to the company,” good for Cliffs, which saw its 2010 studies, said Matthew Majernik, lege. “Employees will take their and furloughs empathetically — a Dr. Martin said. “In terms of net income hit $1 billion, or about executive director of total rewards education more seriously.” philosophy addressed in many of employment morale and satisfac- five times its 2009 earnings of $205 at the Cleveland Clinic. He said the Researchers say companies are the courses at Weatherhead. tion with working with an organiza- million.) increase was because the Clinic is increasing the hurdles an employee “We made the case, and I think tion, it really does send a message. “The benefits that the organiza- aware of the burden rising tuition might need to jump through before that helped to not have that dip (in When a company cuts that, it puts tion offers is one to attract and retain costs place on its employees and they cut checks to cover tuition enrollment) be even more dramatic,” the student in a tough spot.” talent and to be very competitive the institution’s desire to train its Mr. Devlin said. in, not only our industry, but also work force to meet the health care bills. Companies are more likely to Investing in the future approve the coursework in advance James Martin, associate dean of where we operate,” Cliffs spokes- system’s goals. and to require a satisfactory grade the Boler School of Business at John However, not all companies have woman Patricia Persico said. “It’s “At that point in time, we made for reimbursement, which brings Carroll University, said he’s also taken a scalpel to their education an investment in the company. You an enhancement to the plan to ensure “more accountability from employees seen companies cutting back on assistance programs. want the best people to be part of we had properly skilled employees to actually generate results,” said tuition reimbursement, though it Cliffs Natural Resources, the your organization. We have a very to help with our overall mission of Katie Talarico, survey manager at the hasn’t affected enrollment in the Cleveland-based producer of iron competitive benefits program.” putting the patient first and our Employers Resource Council. school’s business programs. ore and metallurgical coal, still The Cleveland Clinic nearly mission of focusing on clinical out- ■ Schools take note As Dr. Martin sees it, offering reimburses 100% of an employee’s doubled its tuition reimbursement comes,” Mr. Majernik said. Business schools have noticed the trend. Michael Devlin, associate dean of executive education at Case Western Reserve University’s Weatherhead School of Management, said the school WWW.DOLLARBANKBIZ.COM in fall 2008 — when the economic slump took hold — saw a 15% to 20% enrollment dip in its open enrollment programs, which typically feature short-term courses for professionals looking to bolster their skills. “It was very immediate,” Mr. Devlin said. “I don’t think it was cat- “ aclysmic, but it was very noticeable.” Mr. Devlin noted that enrollment has started to rise in the last six to nine months, and there has been more willingness on the part of employers to reimburse tuition once WE’RE LENDING again. It hasn’t rebounded to pre- recession levels, Mr. Devlin said, but the growing enrollment is a positive indicator that companies are looking to reinvest in their work force. “They sort of felt they had neglected education, training and development for employees for a long enough period, and they were starting to feel the pinch of that,” Mr. Devlin said. MONEY. Mr. Devlin said the university during the recession approached several of Weatherhead’s longstanding customers explaining the benefits of IN BRIEF Class-action settlements trend down in 2010 AND EXPERTISE. The number of court-approved securities class action settlements declined in 2010, sinking to the lowest number in more than 10 years, Cornerstone Research Inc. said in an annual report released last week. There were 86 court-approved settlements during 2010, a 15% decline from 2009. Since 2001, the You” need a bank you can count on for ﬁnancing. But if the conversation stops at interest rateses and paymenpaymentt number of cases settled peaked at 119 in 2005. plans, are you getting your money’s worth? We’re a mutual bank, independent like you. We knownow having Cornerstone also found that the experienced professionals on your side makes a difference. That’s why you’ll have your own Dollarollar Bank dollar value of all 2010 settlements dropped to $3.1 billion, down 17% business banker. A lender, yes. And more – someone who’ll get to know your business and bringng you ideaideass from 2009. to build your future. READY FOR A BANK THAT INVESTS IN YOU? LET’S TALK @216.736.8938.6.8938. However, the decline likely won’t continue, and a difficult economy may have helped reduce the number of approved settlements in CORPORATE BANKING Q BUSINESS BANKING Q TREASURY MANAGEMENT Q COMMERCIAL REAL ESTATE Q PRIVATEATE BANKINGBANNKINNG 2010, Cornerstone said. “The more likely cause for this decline is a combination of the sub- stantial drop in the number of cases filed during 2006 … and the fact that to date, credit crisis cases have generally taken longer to settle,” the BILL EELLIOTTLLIOTT report states. “Since ... credit crisis Seniornior Vice President cases are now becoming a much CoCorporaterporate BankinBankingg smaller population of filed cases, the decline in the number of cases settled in 2010 is not expected to Equal Housing Lender. Member FDIC. Copyright © 2011, Dollar Bank, Federal Savings Bank. BUS173_11 persist.” — Business Insurance 20110314-NEWS--8-NAT-CCI-CL_-- 3/11/2011 1:38 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011

to construction, but officials say the state has reneged on some of its Petro: Colleges seek autonomy, less red tape promises because of escape clauses included in the restructuring agreements. continued from PAGE 1 construction project. top of our own bureaucracy,” Dr. Virginia’s experience “What the state giveth, the state with which state-supported colleges “There’s no question that I have Lefton said. “So in general, we’re can taketh away,” said Larry Hincker, grapple is the “multiple prime said often and repeatedly and supportive of the notion of freeing But, as Dr. Lefton noted, “the associate vice president for university requirement,” where they must work enthusiastically that I would be us up from regulation. We think devil is in the details.” The form the relations at Virginia Tech, one of the directly with several contractors eager to explore” the idea of charter this is a good thing.” charter university idea would take universities involved in the state’s rather than with a single contractor universities, Dr. Proenza said. Late last year, Kent State was tan- depends on how the Legislature restructuring. to manage construction projects. Kent State University president gled in red tape of its own when receives Mr. Petro’s proposal. For instance, Mr. Hincker said the Also, Mr. Petro noted that com- Lester Lefton wouldn’t say whether Eric Fingerhut, Mr. Petro’s prede- Virginia restructured its higher Virginia Legislature originally agreed petitive bidding requirements and he supported the idea of charter cessor as head of the Board of education system in the mid-2000s. to let the university keep its interest restrictions on real estate transac- universities, considering a formal Regents, rejected the university’s The original legislation called for earnings on overnight deposits, but tions potentially could be scaled proposal hasn’t been introduced to request to borrow $210 million for charter universities, but that label ultimately reversed that decision. back under his proposal. the state Legislature. However, he a major campus upgrade program later was dropped. Eventually, the The state also reduced payments Luis Proenza, president of the was keen on the idea of lifting some that would been financed by new state granted some of its public uni- into the public employees’ retire- University of Akron, said he was of the regulations on state colleges. student fees. Depending on how versities varying levels of autonomy ment system; some of that money “very, very positive” on the idea of “We would like to operate using the charter idea pans out, Mr. Petro in financial matters, construction was expected to return to the univer- transforming his college into one of business principles that involve the said, seeking the chancellor’s projects and personnel matters. sities, but the state used it to fill other the charter schools. He noted that least government interference and approval of its financing plan The universities in Virginia are budget gaps. the multiple prime requirement the least government regulation would have been something Kent grateful for the lifting of some reg- “Everybody seems to forget we can add 10% to 20% to the cost of a that adds layers of bureaucracy on State possibly could have avoided. ulations, particularly those related have these management agreements, and (lawmakers) start writing legislation like the universities are the way they used to be,” Mr. Hincker said. It’ll take convincing Mr. Petro has asked the Board of Regents to explore the situation in Virginia further so he can determine the best course of action for Ohio. “It’s the kind of thing that, I think, becomes a worthwhile innovation if it’s working elsewhere,” he said. “You look for best practices in other venues and see if you can adopt them in Ohio.” In Virginia, support to its universities has continued to decline as the state wrestles with its own fiscal woes. In Ohio, higher education leaders are expecting drastic reductions in state subsidies as Gov. John Kasich and the Legislature stare down an estimated $8 billion gap in Ohio’s new two-year budget. Despite the budgetary qualms facing the state’s universities, Mr. Petro said, “revenue shortfalls are always an excellent opportunity to reconfigure your operations.” Others aren’t so sure and aren’t ready to buy into the charter universities concept yet, especially if it means reduced state money. “We support additional autonomy and deregulation, but in terms of there being some kind of price tag for that, I don’t understand the ratio- nale,” said Bruce Johnson, president of the Inter-University Council of Ohio, a group representing the state’s public universities. ■

ON THE WEB Story from www.CrainsCleveland.com. Chronos pumps life into insurance firm Chronos Life Group, a portfolio company of private equity firm Kohlberg & Co., has acquired a majority ownership interest in Life Equity LLC, a company in Hudson that buys in-force life insurance policies on behalf of institutional investor clients. Terms were not disclosed. Kyle Kibler, who previously was chief operating officer of Life Equity, succeeds company co-founder Brian Smith as CEO. Chronos said Mr. Smith will remain involved with Life Equity as a member of its board. Chronos said Life Equity operates as a so-called life settlement provider in 42 states. Life Equity also provides services for the post-acquisition management of policy assets. 20110314-NEWS--9-NAT-CCI-CL_-- 3/10/2011 1:51 PM Page 1

MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Construction: Builders not sure if momentum will last

continued from PAGE 1 “It’s not the panacea. It’s not the recovery we are just starting, and work won’t hit its seasonal stride until summer, so looking for with a variety of jobs. This is a few jobs.” more hiring is at hand — though – Tony Panzica, president and CEO, Panzica Construction Co. how long construction jobs can be sustained is another matter. John ‘It’s not the panacea’ East Bank. He expects the job, cued Kilbane, business manager of Laborers for later in the year as foundations Local 310 in Cleveland, said the con- Ken Simonson, a widely quoted and parking garages take shape, to vention center job already is providing economist at the Associated General require hiring 15 subcontractors its share of employment for his Contractors of America trade group and to employ about 60 trades members, who do assorted tasks in Washington, D.C., said Northeast people. tending to other building trades and Ohio’s continued population losses “It’s not the panacea,” Mr. Panzica asbestos removal. drag down its construction business said of the downtown building pro- “You don’t see a lot of activity because the area lacks the popula- jects. “It’s not the recovery we are because it’s inside,” Mr. Kilbane tion increases that spur expansion looking for with a variety of jobs. said. in normal times in other parts of the This is a few jobs.” Among 200 workers at the con- nation. George Palko, CEO of heavy- vention center site, more than 100 Tony Panzica, president and CEO construction firm Great Lakes Con- laborers are working inside the old of Panzica Construction Co. in May- struction Co. of Hinckley, likewise building and 30 are above ground, field Village, reflects the caution said current projects “are not the Mr. Kilbane said. They’re the first of among construction business be-all, end-all. 500 laborers who will work on the owners. “There’s got to be more to intro- two-year, $465 million project, which “We may need one or two people duce a good slug of confidence to the includes a medical merchandise through the year” to run construc- construction market,” Mr. Palko mart. tion jobs, Mr. Panzica said, but he said. Shortly, 50 laborers in two shifts does not plan to add to Panzica’s However, Mr. Soggs said the will start readying four floors of the core, 100-person work force unless nature of some of the work — the Higbee Building for transformation he feels better about the strength convention center reinvigorating to a gaming palace. of the market as a whole going the city’s hotel and restaurant The work, especially at this time of most parts of the country as the year from last — though last year, forward. market and the casino creating year, is “very welcome after the nation gradually recovers and Donley’s average work force That caution comes from some- more permanent jobs — will seed blight of the last few years,” Mr. Kil- commercial construction generally here was its lowest in the last 15 one who holds the contract to build economic growth and, with it, more bane said. remains weak. years. the 150-room Aloft Hotel at Flats construction opportunities. ■ “This is our downtime due to “We will stack up very well com- weather,” he said. “We have about pared to other parts of the country,” 200 people on the bench — not bad Mr. Soggs said. “Some of my coun- by any means — but without this terparts (in other states) have nothing work, there would be twice that to look forward to.” many.” More than 6,500 construction jobs Better than half full are forecast for the nearly $2 billion How deep and broad this boom construction spree afoot in North- will be concerns the contractors who east Ohio — most of it downtown — own building firms, including some that is coming on the heels of the of those who have pieces of the nation’s worst economic downturn downtown megaprojects. in 50 years. Various craftspeople — For instance, Thomas Laird, senior carpenters, electricians, masons, vice president and regional manager machine operators and more — will of Gilbane Building Co.’s Cleveland get to work at different intervals as office, runs the firm that is the jobs progress over the next few years. general contractor for the $275 mil- Reversal of fortune lion Flats East Bank project. Parking garages, the Ernst & Young Office For many of these construction Tower and the Aloft Hotel are starting workers, it has been a long drought. to rise from the river valley’s slope at Team NEO, the regional business West Tenth Street. And make no attraction group, reports construc- mistake — he’s glad for the work. tion and related employment stood “In general, there is reason to at 62,400 jobs last July, when weather- be more optimistic,” Mr. Laird said. sensitive construction peaked for the “These projects are certainly helping. year. That figure was down nearly “But,” Mr. Laird added, “it’s still 22% from the summer peak of 79,600 insufficient to say we’re busy again.” jobs in June 2007, before the reces- Without this work, Mr. Laird said, sion hit the following year. Team “I wouldn’t feel very good,” and he NEO’s data is from Bureau of Labor wonders how the big picture for the Statistics figures for the Akron, region will shake out long term Canton, Cleveland and Youngstown beyond downtown for the job metropolitan statistical areas. market. However, the big burst of con- He notes big projects such as Uni- struction in Cleveland is about to versity Hospitals’ Seidman Cancer reverse that trend line, at least for a Center in Cleveland and its Ahuja time. Loree Soggs, executive secre- Medical Center in Beachwood are tary of the Cleveland Building Trades finished, and other significant health Council, which represents multiple care jobs are winding down. unions, envisions a “wonderful sight” Nonetheless, the uptick is signifi- when 13 cranes go up later this year cant for Donley’s Inc., a general con- to build foundations for the $200 tractor and concrete subcontractor million Inner Belt Bridge across the based in Valley View. yawning Cuyahoga River valley. Don Dreier, Donley’s executive “We’re looking at a minimum of vice president, estimates the company’s two years of full employment,” Mr. jobs — parking garages at Flats East Soggs estimates, as various contrac- Bank, concrete at the Medical Mart tors and trades ramp up. He esti- and a role as construction manager mates there is 20% unemployment for the new Museum of Contempo- among the 17,000 workers in his rary Art Cleveland at University council’s affiliated trades — more Circle — means it will hire more than double the general unemploy- than 100 workers in the field this ment rate of 9% — and unemploy- year that have been unemployed ment in some trades tops 40%. since the end of last summer. Even before the recession hit Donley’s also has added five man- in late 2008, the volume of heavy agement jobs. construction in Northeast Ohio Mr. Dreier estimates when the languished. Now, the region stands construction season is in full swing, to come out of the box stronger than hiring at Donley’s will be up 10% this 20110314-NEWS--10-NAT-CCI-CL_-- 3/10/2011 4:29 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION No NCR merican Greetings Corp. is staying in Northeast Ohio — which, frankly, we suspected it would do all along. Then again, it could have pulled an NCR, the company thatA began life in 1884 as National Cash Register Co., maker of the first mechanical cash register. NCR celebrated its 125th anniversary in 2009 by announcing that it would be moving its corporate headquarters and 1,200 jobs to Duluth, Ga., from Dayton, the town of its birth. It was a shocker to the people of the southwestern Ohio city, and two years FROM THE PUBLISHER later it remains a bitter emotional and economic pill for Dayton to swallow. The possibility of American Greetings becoming Petro should right Fingerhut’s wrong the Cleveland area’s version of NCR was raised last November. That’s when the greeting card giant that im Petro, the newly appointed state across the campus. fans should brace themselves, as should began life in Cleveland more than 100 years ago said chancellor of higher education, has In full disclosure, I served as a trustee their revered coach, Jim Tressel. I’d be it was considering two locations in the Chicago area an opportunity to solve a problem at the time this request was made, and I surprised if the NCAA doesn’t penalize along with five locations in Greater Cleveland as as fast as his boss, Gov. John Kasich, was absolutely floored when the then- the coach further for the latest sad chapter Jdid when Mr. Kasich cleared up a chancellor rejected it. His argument was in “tattoogate.” potential sites of its world headquarters, where it employs 2,000. regulatory mess — in his first days in that the university shouldn’t pay for the As most everyone knows, the university The situation reminds us of the classic line office — that had been plaguing an Ohio bonds with its planned student fee; the announced last week that the coach university countered with an offer to would be suspended for the Buckeyes’ delivered by Clint Eastwood as Harry Callahan in company for years. The new chancellor, a former freeze tuition at the regional first two games next season and fined the original “Dirty Harry.” In a scene near the start attorney general, state repre- BRIAN campuses and with the logic $250,000 for failing to inform his bosses of the film, he exchanges gunfire with a number of sentative and Cuyahoga County TUCKER that the fees would be modest and when he first learned that several of his bank robbers, and finally ends up standing over a commissioner, can undo the phased in over several years. key players had sold jerseys and other bad guy he has wounded. Harry then says these problems his predecessor caused After the university repeatedly memorabilia to a shady Columbus tattoo immortal words: for Kent State University when tailored its proposal to gain parlor owner. “I know what you’re thinking. ‘Did he fire six shots he rejected the university approval, only to be rejected Everyone knows that integrity and or only five?’ Well, to tell you the truth, in all this trustees’ plan to do some badly again and again, the message trust have been core characteristics of excitement I kind of lost track myself. But being as needed campus renovations back from the chancellor was coach Tressel, and have been central to this is a .44 Magnum, the most powerful handgun in that had been put off for years. that if the university didn’t like his recruiting success since he arrived in Last year, while in the fourth it, “vote for the other guy.” Columbus. I’m certain he knows he faces the world, and would blow your head clean off, you’ve year of his term as chancellor, Ohioans voted for the other a long, hard climb back to that lofty got to ask yourself one question: ‘Do I feel lucky?’” Eric Fingerhut refused to allow Kent guy, who has appointed Mr. Petro to this position in which he’s long been held by It’s the question of the hour in economic develop- State to take advantage of attractively critically important leadership post. Here’s Ohio State football fans. ment circles. When a company that has been a low-interest bond rates (and a stimulus hoping he sees the wisdom in such an I hope he makes it, because he has stalwart of the community raises the prospect of program offered by the Obama adminis- important investment for a university brought a lot of pride to OSU, and along leaving, can you afford to rest on the belief that it’s tration) to make urgently needed repairs that serves so many of Northeast Ohio’s the way has helped the university raise a lot only rattling its sword and never would think of and build a new home for its nationally young people. of money for non-athletic improvements actually cutting its ties? recognized architecture program, which * * * * across the campus. The question is: Will the ■ Taxpayers grind their teeth at the sight of is currently scattered in several facilities OHIO STATE UNIVERSITY FOOTBALL football program ever be the same? companies extracting sweet loans and tax breaks from state and local governments that are eager for the jobs of large employers. They call it corporate LETTERS welfare. Yet companies the size of American Greetings aren’t beating down the door to come to Northeast Ohio and replace its $150 million payroll. Early stage capital serves crucial purpose No one wants the next NCR, especially in a state where unemployment still hovers around 9%. So, ■ The Feb. 28, page 5 story, “Golf tech opportunity that may be brief. economic growth (increase in jobs) and we must commend Gov. John Kasich for his aggres- company hits rough patch” makes an This is a natural tradeoff and one that solid returns to investors who undertook sive courting of American Greetings, and state Sen. illogical comparison that completely I am very familiar with. As CEO and the capital risk. That is the way it works. Tom Patton for championing House Bill 58; it misses the mark. founder of OmniVista Software, we took Imagine if the founders of Google or The story compares Charitee Golf less than $1 million in capital and grew the Facebook did not seek early stage capital created a job-retention tax credit for large employers LLC, founded by Mike Burkons, to Nine business to over 30 employees in less to accelerate the growth of their business that in the case of American Greetings could be Iron Innovations, a growth business that than three years before selling it to Best to take advantage of a market opportu- worth as much as $75 million over 15 years should was funded by both JumpStart and North Software in 1999. nity. Imagine if they attempted to grow it the company make a major capital investment and Coast Angel Fund. It quotes the apparent As CEO of RIS Logic, we took slightly slowly and organically (especially with add to its employee base here. The tax credit is an success that Mr. Burkons (profitable, over $2 million in early stage capital and no sources of revenue). arrow in the state’s quiver that could be used to employing himself and two part-time grew the company from two employees The story implies that Nine Iron wasted retain other big employers, too. employees) has had with Charitee Golf to 50 employees in less than three years its precious capital and should have been We recognize that with an $8 billion deficit at to the apparent failure by Nine Iron. This before selling it to Merge Healthcare. I more cautious. The company invested in hand in Ohio’s next two-year budget, it’s hard to comparison shows a complete lack of should add that both companies had technology, sales, and marketing over a swallow any sort of tax giveaway. The alternative, understanding of what the purpose of barely achieved break-even before they four-year period. During that time the early stage capital is. were sold to public technology compa- company achieved nearly 10 times though, is risking the loss of the tax-paying jobs of a Early stage capital is meant to fund nies for returns that ranged from 300% to revenue growth. significant employer. And in a still-tepid economy, rapid growth, often at the expense of 800% to investors (each in less than three However, from 2010 to 2011, it we’d rather not rely on luck to keep them. initial profitability. Most often this is to years). became apparent that the company and take advantage of a window of market So, early stage capital resulted in See LETTERS Page 11 20110314-NEWS--11-NAT-CCI-CL_-- 3/10/2011 3:42 PM Page 1

MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

THE BIG ISSUE Are you comfortable with the state of Ohio offering major companies such as American Greetings incredible incentive packages?

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KPJO)ZMBOE4PGUXBSFBUUIF $MFWFMBOE$PSQPSBUF$IBMMFOHF,JDLCBMM5PVSOBNFOU WES JOHANSEN TERENCE O’BRIEN JIM JOHNSON SUSANN GEITHNER 'PSJOGPSNBUJPOPOIPXUPKPJOJOUIFGVO DBMM Cleveland Highland Heights South Euclid Lakewood )FSNFT4QPSUT&WFOUTBUPSWJTJU XXXIFSNFTDMFWFMBOEDPN (Yes), as long as the If it makes them stay here As a general proposition, No. … I’m from East company states that and we keep our jobs, yes. … I think that you Germany. … Companies they’re really dedicated then I’m OK with it. need to encourage there got lots of incentives to business in the state business to be here, set from the government, and and that the companies up shop, create jobs for what usually happened already have shown them- us as opposed to them after that is they forgot all HELPING GREAT selves to be profitable and going somewhere else, the promises of putting in have a good track record. but it always depends on new jobs … and moved the incentive package that away after five years. IDEAS TAKE ROOT they offer. ➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. THETHE TECTECHNOLOGYCHNOLOGY GREENHOUSE is a new type of business incubatoror driven by a unique public-private Hospitals back feds in Va. health reform case collaboration. Strategic partners include the City of Mentor, CADVenture,nture, By REBECCA VESELY Public Hospitals and Health Systems, reform law unconstitutional. The Inc. and Lake Erie College – each Modern Healthcare Association of American Medical case is now on appeal. contributing an important nutrientt to Colleges, Catholic Health Associa- Along with the hospital groups, enhance successful business growth.wth. Six major hospital associations tion, Federation of American Hospitals the main lobbying group for insurers, We’re looking for entrepreneurs whoh are ddeterminedt i d have filed an amicus brief in support and National Association of Chil- America’s Health Insurance Plans, or to see their innovative ideas blossom into commercially viable product-driven of the federal government in the dren’s Hospitals. AHIP, also defended the individual businesses. The Technology Greenhouse provides the ideal environment and case brought by the state of Virginia “By forgoing health insurance, mandate, in a separate brief filed all the critical services you’ll need, including early-term ﬁnancial assistance, to repeal the Obama administra- individuals simply shift the burden with the court. ofﬁce space, state-of-the-art engineering software, technical training, coaching tion’s health care law. of their health care payments to “Market reforms that are not and business plan development. The law’s mandate that all Amer- others,” the hospital groups wrote coupled with an individual mandate icans carry health insurance is lawful in the brief. “The health care market are likely to lead to disruption and because, whether they purchase is unique in this respect.” instability in the health insurance To accelerate your seedling idea into a revenue-generating reality, health insurance or not, everyone Last December, a federal judge market,” AHIP wrote in its brief in contact Tom Thielman, program administrator, at (440) 974-5739 or participates in the health care system, agreed with Virginia Attorney support of neither party. ■ [email protected] or visit MentorTechnologyGreenhouse.com. argue the American Hospital Asso- General Ken Cuccinelli in finding ciation, National Association of the insurance mandate in the health LETTERS continued from PAGE 10 Dan Quigg the golf industry as a whole could not Chief executive officer support the ongoing growth neces- Nine Iron Innovations Inc. weatherhead sary to generate adequate investor returns. Consequently, we made a Focus on Kasich’s plans difficult decision to sell the company’s brand and assets. ■ I think Crain’s government reporter This is not uncommon in the Jay Miller picked up on an important world of early stage companies, factor in reporting on Gov. John where many more fail than succeed. Kasich’s attentiveness to Cleveland, Interestingly, the sale of the assets as reflected in your March 7, Page and brand was made to an individual One story, “Cleveland’s newest who will continue to try to grow it as BFF.” Mr. Kasich certainly is making a lifestyle company. former Gov. Ted Strickland look as if This is precisely the kind of the Democrat took this Democratic OUR LETTERS CARRY THE STRENGTH OF NUMBERS company that Mr. Burkons is run- city for granted too often. ning in Charitee Golf. There is nothing However, what is necessary is to wrong with lifestyle companies. keep a watchful eye that what Gov. Weatherhead’s Part-Time MBA program ranked However, the expectation that they Kasich does rather than where and #14 in the nation. will fuel significant economic growth how many times he visits. – Businessweek, “Best Part-Time MBA Programs” and create adequate investor returns Mr. Kasich’s desire to end the to offset the risk is not correct. estate tax, privatize highways and Organizations such as JumpStart cut important needs to urban areas Weatherhead’s Executive MBA program ranked and North Coast Angel Fund are in education, libraries and other #16 among schools in the United States. making a huge impact in our regional governmental services may be more Worldwide, the program ranked #21. economy. These organizations are a damaging to cities than highly – Businessweek, “Best Executive MBA Programs” bright light to our region’s economic visible two-hour visits. future and gaining more and more I also would have appreciated visibility nationally. Organizations comments from labor leaders and Learn more about Weatherhead MBA opportunities at weatherhead.case.edu. are locating in Northeast Ohio due to not simply Cleveland business lead- the desire to take advantage of this ers. capital engine. We need to embrace this engine that will experience both Roldo Bartimole successes and failures. Cleveland Heights

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] 20110314-NEWS--12-NAT-CCI-CL_-- 3/10/2011 3:32 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011 Social: Privilege, regulations cause law firms to be cautious continued from PAGE 3 interactive officer for Paul Werth “Social media is not have dipped their toes in the social Cleveland law firm has been posting By contrast, other banks in Associates, a Columbus communi- media waters seem pleased with the regularly to Twitter, Facebook and Northeast Ohio, among them Dollar cations consulting firm that serves going to go away. ... We experience so far. YouTube for probably the last 18 Bank and FirstMerit, are inactive on companies throughout the Mid- need to be active.” Visible on KeyBank’s Twitter months, said president Carl J. Grassi. Twitter and Facebook. west. – Carl Grassi, president, page, for example, are various com- It shares news releases and round- Dollar Bank’s Twitter page Hahn Loeser & Parks LLP is not McDonald Hopkins munications between customer table invitations, among other items. exclaimed in July 2009 that the active in social media, though it has service representatives and customers, Mr. Grassi said the firm has seen bank “will be coming soon,” but secured a Twitter page in its name. sively to build a social media presence happy and disgruntled. During its the value of its efforts in an increased that has been its only tweet to date. Thomas D. Smanik, its chief operating for Canton law firm Day Ketterer shorter tenure on Facebook, Key number of unique page views on its Akron-based FirstMerit wrote on its officer, notes that law firms in Ltd., Kirsten Conley spent time in has posted links to news about itself web site and a growing number of Twitter page that it’s holding its particular “by our nature are more March during her first four days and photographs of one event it requests for its content, such as the name for now. cautious about any new technology.” with the firm weighing the pros and hosted. alerts and special reports it prepares on Neither bank appears to have One reason, Mr. Smanik said, is cons of doing so. Day Ketterer does “We do still think that face-to- various legal and legislative topics. created a Facebook page. However, that law firms are subject to restric- not have a Facebook or Twitter page. face interactions with our clients “Social media is not going to go Dollar Bank vice president Lawrence tions on marketing and advertising “My initial challenge with social are very important,” Ms. Haefling away,” Mr. Grassi said. “It’s clearly F. Slenczka wrote in an e-mail imposed by state bar associations. media for a law firm is you don’t said. “But we’re very excited about the way that people are communi- that the bank is in the process of re- Another is that they must be careful necessarily just want to speak to the this engagement in this new way.” cating. Therefore, we need to be searching the feasibility of incorpo- not to establish attorney-client largest number of people possible,” As for McDonald Hopkins, the active.” ■ rating Twitter and Facebook into its privilege inadvertently through said Ms. Conley, director of client marketing and communications. venues such as Twitter and Face- development. “I see value to it, but book. The disclaimers many attorneys it needs to be approached very Caution rules include in their e-mails, he noted, carefully.” SOCIAL MEDIA’S GOOD, BAD AND UGLY Bryan Huber works with compa- are hard to include in 140-character Hahn Loeser doesn’t have a Who needs a teller window or branch drive-through for customer service? A look at nies to identify and define their tweets. timeline for building a social media the Twitter pages used by KeyBank and Fifth Third Bank representatives reveals a online strategies and thus has a front Banks, too, are cautious, empha- presence, Mr. Smanik said. fair amount of interaction — not all of it pleasant — between the banks and people seat to the trends. He’s noticed the sizing that clients should not “We’ll eventually have something who tag, or mention, them on their pages. But isn’t that the free-wheeling nature of banking sector’s increased involve- provide account information via out there,” he said. social media? A recent sampling: ment and law firms’ anxiety. social media. “I think it’s going to be huge,” he Many companies that deal in the Nonetheless, many in law and added. “But I think it’s going to take business-to-business realm instead banking predict more of their time before we figure out how it’s of business-to-consumer have been brethren over the next year will going to become huge.” resistant to the use of social media make themselves known in social It’s ‘not going to go away’ because the benefits aren’t as obvi- media. ous to them, said Mr. Huber, chief Although she wasn’t hired exclu- Those banks and law firms that

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In 2010 we provided over 250 million

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January 2010 February 2010 February 2010 March 2010

Briar Hill Holly Hill Health Care Residence Healthcare Community WXZ Retail Group The Lander Circle Company Short term skilled rehabilita- Short term skilled rehabilitation, long term care, assisted tion, long term care, assisted New Bank Branch Supermarket Anchored Commercial Development living, independent living, living, independent living, hospice care and respite care hospice care and respite care Construction, Mini-Perm Financing Term Financing Term Loan Financing Term Loan Financing

April 2010 April 2010 May 2010 May 2010

MRN Ltd. YWCA Independence Place, LLC and Cleveland Housing Network Mixed Use Development Stripmatic Products, Inc. Ladies & Gentlemen Hair Stylists, Inc. Construction of Permanent Leading metal forming specialists in bushings, Supportive Housing Hair Salon, Day Spa and School of Cosmetology Participation spacers and tubular products Construction, Financing for General Corporate Purposes Construction Financing Mini-Perm Financing Working Capital Financing

July 2010 July 2010 July 2010 July 2010

Astro Manufacturing & Design, Inc. O’Connor’s Manufacturing and engineering of electrical EMC Precision Machining Towing Service, Inc. 635 W. Lakeside Ltd. and mechanical equipment Manufacturer of precision machined parts and Complete Collision Repair, Crane Service Mixed Use Development components for a variety of industries and 24 Hour Auto & Heavy Truck Towing Line of Credit for General Term Financing Corporate Purposes Acquisition Financing, Revolving Credit and Term Loan Facilities Term Financing

August 2010 September 2010 September 2010 September 2010

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November 2010 November 2010 December 2010 December 2010

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June 2010 June 2010 June 2010 July 2010

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July 2010 August 2010 August 2010 August 2010

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September 2010 September 2010 October 2010 October 2010

Best Supply, Inc. / Best Supply Properties LLC Construction Material HC Nationwide LLC Applied Metals Technologies, LTD. Cleveland Botanical Garden Supplier Commercial & Industrial Rooﬁ ng and Metal Finishing operations including milling, grinding, A cultural treasure since 1930, alive with the plant Construction Services non-destructive inspection, blasting & powder coating world’s natural beauty and vital contributions to all life Term Note and Revolving Line of Credit Commercial Line of Credit Line of Credit Term Loan Financing

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16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011

Tired of Being Screwed? Bridgestone no longer will supply IndyCar racing after the 1999 season. Before Then stop hiring fly-by-night “roofing contractors” whose After 11 years as auto series’ lone provider, that it competed with Goodyear for only office address is wherever their pick-up truck happens five years both in IndyCar’s prede- to be parked at the time! tiremaker’s future in motorsports unclear cessor Indy Racing League and the competing Championship Auto Racing The no-insurance, irresponsible operators are driving the few By TIRE BUSINESS Bridgestone said the decision was Teams series. remaining honest roofing contractors out of business. Unless reached mutually with IndyCar. The “During our long history in racing the consumer gets wiser, ultimately there will be no one Bridgestone Americas Tire Oper- issue has been up in the air since we have met or exceeded all of our responsible left! We are looking for a few wise consumers. ations will stop supplying the early January after Bridgestone failed motorsports goals,” said Al Speyer, IndyCar Series and its companion to notify the series by the Dec. 31 executive director, Firestone Racing, If you fit the bill, call Firestone Indy Lights racing series deadline of its intention to continue in a prepared statement. with Firestone racing tires at the the supply contract beyond 2011. “So now it’s time to set new goals 216•881•1999 end of this season. Bridgestone did not comment — for ourselves and our brands. … www.careyroofing.com Bridgestone Americas makes on possible other racing venues it The Firestone brand has been, is CAREY founded in 1946 Firestone racing tires at its research- might pursue or whether this means now and will be an extremely impor- Roofing Corp. MEMBER: National Roofing Contractors Association and-development center in Akron. no motorsports activities in North tant part of our business,” he said. The IndyCar Series already is America after this season. The “We’re very excited about our future “actively engaged in discussions Japanese tiremaker ended its role as prospects to grow the Firestone brand.” with other tire manufacturers on the sole tire supplier of the interna- The Firestone brand has competed opportunities to get involved in our tional Formula 1 series after the in IndyCar-style racing for more sport as we prepare to debut our 2010 season. than 60 seasons since its debut at the new car in 2012,” said IndyCar CEO Firestone has been the series’ Indianapolis 500-mile race in 1911. Randy Bernard, referring to a new sole tire supplier for the past 11 Firestone tires have carried 62 of the chassis and engine formula that seasons, following Goodyear’s deci- Indy 500 winners since then to victory, takes force next season. sion to bow out of open-wheel Bridgestone said. ■ GOING PLACES JOB CHANGES V. Marotta to assistant to the president and mortgage loan officer. ARCHITECTURE HEALTH CARE SOL HARRIS/DAY ARCHITECTURE: Bart Remark to project manager; METROHEALTH: Dr. Jeremy M. Lisa Webb to project associate. Lipman, Department of Surgery; Dr. Remark Webb Smith Catherine C. Fallick, Heart & DISTRIBUTION Vascular Center; Dr. Sean Nagel, Department of Neurosurgery; Dr. APPLIED INDUSTRIAL TECHNOLO- Kermit W. Fox III, MetroHealth GIES: Dave Smith to director of Rehabilitation Institute of Ohio; Dr. Ali corporate purchasing. Totonchi, Division of Plastic Surgery; Dr. Joseph Golish, Division of EDUCATION Pulmonary, Critical Care and Sleep KENT STATE UNIVERSITY: W. Medicine. Grant McGimpsey to vice president McGimpsey Kennedy Dracon for research. INSURANCE LAKE ERIE COLLEGE: Jessica ALPHA GROUP AGENCY: Kate Marker to controller; Robert Hubben to insurance broker. Mastronicola to coordinator for HYLANT GROUP: Melissa Hamood Mission Launch veteran support services; Dee Dee to client service executive; Jennifer Bober to director, adult degree Povtak and Ken Barber to client completion program. service managers; Megan Ewing UNIVERSITY OF AKRON: Kathleen and Diana Jaworski to client service Kennedy to executive director, specialists; Marissa Ramsey to Smith Eddy Burak Introducing Taylor Institute for Direct Marketing senior service assistant; Leslie and the Suarez Applied Marketing Thomas to senior claims specialist. Research Laboratories. the launch LEGAL ENGINEERING ANKUDA, STADLER, MOELLER & of our OSBORN ENGINEERING: Eugene TYMINSKI LLC: Christopher P. Baxendale to president emeritus. Ankuda, David Stadler, Colin Moeller and Michael Tyminski to FINANCE partners. mobile Brennan DiCello Altvater U.S. BANK: Robert Dracon Jr. BUCKINGHAM, DOOLITTLE & and Kiley Smith to business client BURROUGHS LLP: Brenda S. website! relationship managers. Schwartz to partner. TECHNOLOGY SPANGENBERG SHIBLEY & RAPID MARKETPLACE LLC: Eric FINANCIAL SERVICE LIBER LLP: Nicholas A. DiCello to Gogolek to national account manager. partner. BEACON FINANCIAL PARTNERS: Connie Eddy to practice manager. STARK&KNOLL LPA: Michael T. BOARDS Altvater to associate. BNY MELLON WEALTH MANAGE- NEIGHBORHOOD HOUSING Visit www.mcdonaldhopkins.com MENT: Ronald Ambrogio to regional SERVICES OF GREATER CLEVELAND: president; Ron Ulle to senior director MARKETING Jeff Marshall (Transtar Industries) to of portfolio management. from your mobile device. ROSENBERG ADVERTISING: president; Amy Fulford to first vice Jessica Keefer to social media ® BOBER MARKEY FEDOROVICH: president; Lisa Behm to second Attorneys on a Mission Robert M. Burak to partner. strategist; Lisa Holliday to adminis- vice president; Kirby Freeman to trative assistant. Your mission is our mission. We never lose sight of it. D’AMORE TATMAN GROUP LLC: treasurer; Lisa Nelson to secretary. David M. D’Amore and Joseph C. Detrow to staff accountants. REAL ESTATE AWARDS MALONEY + NOVOTNY LLC: CUTLER REAL ESTATE: Jim Sherri R. Bates to principal. Hinton to manager, Stow; Andy YWCA GREATER CLEVELAND: Camp to manager, Dressler office. Linda Bluso (Brouse McDowell); A business advisory and advocacy law firm® TRINITY PENSION CONSULTANTS: Dr. Pamela Davis (Case Western TRANSACTION REALTY: Vito 600 Superior Avenue, East, Suite 2100, Cleveland, OH 44114 Jennifer Heideloff to internal Reserve University); Carol Latham retirement plan consultant. Dipierro to sales associate. 216.348.5400 (Thermagon Inc.); Romona Robinson UBS FINANCIAL SERVICES: Brian WESTFIELD: Steve Greenberger (WKYC-TV); Eileen Saffran (The Carl J. Grassi Shawn M. Riley Brennan to vice president of invest- to vice president, construction. Gathering Place) received 2011 YWCA President Cleveland Managing Member ments. Women of Achievement Awards. Chicago • Cleveland • Columbus • Detroit • West Palm Beach UNION CAPITAL MORTGAGE SERVICE CORP.: Michael Zuren to vice NATIONAL MORTUARY SHIPPING: Send information for Going Places to www.mcdonaldhopkins.com president, sales manager; Charles Angela Berwald to co-owner. [email protected]. 20110314-NEWS--17-NAT-CCI-CL_-- 3/9/2011 1:39 PM Page 1

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Huntington Free Business Checking is limited to 200 transactions and $5,000 in-branch cash deposits per month, then excess transaction and cash deposit transaction fees apply. A “transaction” is any combination of checks paid, deposit tickets, deposited checks and ACH credits and debits. Award claim based on 2009 Business Banking Study. All excellence award selections were based on studies conducted by Greenwich Associates, a leading worldwide strategic consulting and research ﬁ rm specializing in ﬁ nancial services. Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia and Western PA. Source: U.S. SBA from October 1, 2007, through November 30, 2010. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington.® Welcome.TM is a service mark of Huntington Bancshares Incorporated. ©2011 Huntington Bancshares Incorporated. 20110314-NEWS--18-NAT-CCI-CL_-- 3/10/2011 3:31 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS MARCH 14 - 20, 2011

INSIDE 21 TAX TIPS: HEALTH REFORM TAX LAWS STILL CHANGING. SMALL BUSINESS WEST SIDE STORY Iconic Cleveland institution cultivates small business growth, expansion

By KATHY AMES CARR [email protected] Crain’s video To watch local restaurateur or nearly 100 years, the West Sam McNulty discuss Side Market has anchored the expansion plans, and West community surrounding Side Market vendors share th West 25 Street and Lorain their market stories, visit FAvenue. www.CrainsCleveland Through it all, the iconic public .com/MarketVideo marketplace has been the engine behind the surrounding community’s economy, feeding the prosperity of managed institution attracts con- everything from butcher stands to sumers from throughout Northeast surrounding restaurants and retail Ohio and beyond. shops. Indeed, Ohio City stakeholders Proprietors and neighborhood believe the area — now more formally advocates alike say the West Side branded as the “Market District” — Market is a magnet for small busi- is on the cusp of further gentrification ness development and economic as the West Side Market approaches growth because the city-owned and See MARKET Page 20

BLOG COVERAGE The West Side Market’s manager, Christine Zuniga Eadie (below), addresses the long-standing institution’s economic role as its centennial approaches. Read the Q&A in Kathy Ames Carr’s What’s Cooking blog at www.CrainsCleveland.com/Market.

KATHY AMES CARR In many ways, the 99-year-old West Side Market is at the center of Ohio City’s economic development and rejuvenation, CITY OF CLEVELAND PHOTOGRAPHIC BUREAU although stakeholders are working on ways to bolster the facility’s integration into the local food system.

them,” Mr. Deagan said. Still, Mr. Deagan must be doing Online reviews impact an operation’s image something right — his restaurant boasts a four-star rating on Yelp even catapult little-known figures Deagan’s Kitchen & Bar in Lake- checks Twitter and Yelp daily to and a 93% approval rating on Social media present to stardom. And local businesses wood, knows not all of his patrons see what he’s doing right and, UrbanSpoon, another popular should take note: What’s being are going to openly share their dis- perhaps, wrong. One customer, for rating web site. opportunities to said on sites such as Twitter and pleasure with their server. Rather, example, chided the restaurant for Terry Daugherty, an assistant Facebook can make or break you. they might flock to web sites such the size of its cheese plates while professor in the marketing depart- address comments Sure, hordes of media or as the microblogging portal Twitter another wasn’t satisfied with the ment at the University of Akron, protesters aren’t likely to flank a or Yelp.com, a site where users can quality of its french fries. said it’s naïve to think sites such as By TIMOTHY MAGAW local restaurant because of an post short reviews about their Mr. Deagan personally replied Yelp or Twitter can’t impact a [email protected] overcooked piece of meat or some experiences at restaurants, stores to both, explaining the high prices business. The Internet, he noted, shoddy service, but a few scribbles or other service providers. for the quality cheeses he serves has accelerated the speed at which he chatter on social media on a web site can have a lasting Mr. Deagan’s restaurant opened and that the restaurant was in the communication and the transmis- channels has been known impact on whether someone in September, so generating positive process of buying a new fryer. sion of information takes place. to incite revolutions, derail ponies up some cash. feedback is an important factor in “We might do some things “If you somehow get a negative T celebrities’ careers and Daniel Deagan, who owns solidifying a customer base. He wrong, and I want to see if I can fix See REVIEW Page 22 20110314-NEWS--19-NAT-CCI-CL_-- 3/9/2011 1:39 PM Page 1

Pay the balance in full within 10 days of the statement closing date and get a 1.5% discount on virtually all purchases made that month. The discount will appear as a credit on the following billing statement. Pay 10% of the balance from new activity on your billing statement, plus the entire amount of any previously deferred payment or amounts past due by the “Please Pay By” date on that statement, and you can extend payment on the rest until the closing date of your next billing cycle, without penalty. Visit open.com/plum for details. ©2011 American Express Bank, FSB. All rights reserved. 20110314-NEWS--20-NAT-CCI-CL_-- 3/10/2011 3:32 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011 SMALL BUSINESS Market: Centennial to mark past, economic future

continued from PAGE 18 its centennial in 2012. “We wouldn’t be where we are without the West Side Market,” said Jeff Campbell, who owns three stands at the 60,000-square-foot market, including Campbell’s Popcorn Shop. “It’s been an incu- bator for so many small businesses like mine.” Mr. Campbell’s is one of many small businesses that got its start at the West Side Market and then broadened its reach. He has plans to expand to a nearby storefront to accommodate demand from wholesale accounts, and similar examples of growth abound: Cuyahoga Heights-based produce supplier Premier Produce also has roots at the market, as did Chuppa’s Market Place before expanding in 2006 into its own KATHY AMES CARR PHOTOS storefront in Parma. Jeff Campbell owns three stands at the market, including Campbell’s Popcorn Tom Dunderman, owner of The Basketeria, partners with local farmers to pro- “For every one of these stories, Shop, and is expanding into a nearby 2,000-square-foot space. vide fresh produce. there’s 100,” said Eric Wobser, executive director of Ohio City Near market. “The West Side Market future. Ohio City Near West West Development Corp., who also plays a large role in that. Every- The nonprofit and Cleveland- Development Corp. pointed to the growth of Ohio City thing’s right here. If it doesn’t exist based Charter One Bank last The West Side Pasta, founded in 1990 by chef Gary in Ohio City, it doesn’t exist.” Wednesday, March 9, announced Market is fueling the Thomas. That business now the winners of an Ohio City Market area’s economic distributes thousands of pounds of ‘Market for expansion’ District Small Business Develop- growth because small fresh pasta within a six-state region, The Ohio City Near West Devel- ment Grant Competition, which is businesses want to be including Ohio. opment Corp. is using the market’s intended to foster the development where people eat, “This is a very unique and well- 100-year anniversary not only as a of small businesses and entrepre- shop and live, operated urban area,” said Sam chance to acknowledge the institu- neurial initiatives around the West business owner Mr. McNulty, who is about to open his tion’s storied past, but to empha- Side Market. McNulty said. fourth Ohio City business in the size the role it will play in accelerat- “That money will increase “There’s a synergy neighborhood surrounding the ing the neighborhood’s economic tenfold with the return on invest- here because of that ment,” Cleveland City Councilman density,” he said. Joe Cimperman said. Indeed, sales growth Mr. Campbell, of Campbell’s at Mr. McNulty’s three Popcorn Shop, was one of the grant nearby establish- C recipients, with a $15,000 award ments — Bar Cento, apital improvement that will facilitate the development Bier Markt and of a 2,000-square-foot shop just Speakeasy, which all A south of Lorain Avenue on West 25th opened within the ccelerate growth Street. past five years — Other grant recipients are: prompted the propri- S ■ Fit Personal Studio & Yoga etor to move ahead on timulate sales ($10,000), for a hybrid fitness center his latest project, the and personal training studio. 15,000-square-foot, ■ Joy Machines Bike Shop 700-seat Market Joe DeCaro, a fourth-generation owner of DeCaro’s H produce, says he expects to hand down his stand to ire additional staff ($9,000), which will offer a selection Garden Brewery & of refurbished and new bicycles. Distillery, which is his daughter, Melissa, when he retires. The produce ■ Southern Hospitality expected to open this stand opened in 1934. Restaurant ($7,000), which will year next to the market. serve a farm-to-table menu melding “We’ve seen sales can more readily be integrated in traditional foods and drinks with a growth of more than 400% over the West Side Market. The study F unding contemporary urban twist. the last five years,” Mr. McNulty should be completed this summer. ■ The Urban Orchid ($3,000), for said. “There’s still a market for “We’re looking at ways to incor- a new upscale boutique floral shop. expansion.” porate more complementary L ow interest rates ■ R3 Domain ($3,000), which will Meanwhile, tenants such as surrounding businesses into the design, manufacture and sell acces- Penzeys Spices and Crop Bar & operation,” Ms. Zuniga Eadie said. sory pieces, furniture and gift items Bistro are taking up shop in the But fueling the local food system Opportunity crafted from materials sourced United Bank Building at West 25th extends beyond what the vendors from demolished homes and build- Street and Lorain Avenue, which is offer. ings throughout Northeast Ohio. undergoing a $20 million renova- Mr. Cimperman, whose Ward 3 Working capital ■ Salty Not Sweet ($3,000), tion by Cleveland developer MRN includes Ohio City, said he still is which will enable the seller of local Ltd. befuddled by how many Northeast handmade goods to conduct hand- Local, local, local Ohioans never have shopped at crafting art classes. the market. The grant funds are part of a One way the market can increase “Chefs from Great Britain and all $130,000 total commitment from its contribution to the region’s over the world know about it,” he Charter One for its Growing economy is by offering more local said. “People take for granted that Communities initiative. food, said Christine Zuniga Eadie, it’s here.” No substitute for it. 9ÕÊii`ÊÌ°ÊÊ Ohio City Near West is branding West Side Market manager. But Cleveland city officials are the Market District as the hub of a “Local food is a source of pride,” working on raising the market’s 7iÊ >ÛiÊÌ°Ê >ÊÕÃ°Ênnnnä££ÈÈÈ regional food system. The Ohio City she said. “A number of vendors visibility to attract more residents Market District is defined as the have moved in that direction, and businesses, he said. area around West Side Market, including Ohio City Pasta, “The enhancement of economic from West 24th to West 28th streets Sideshow, Foster’s Meats and development will only continue as The Middlefield between Jay Avenue at the north Jorgensen’s Apiary. We’ll be looking the centennial approaches,” Mr. end and Chatham Avenue at the at ways to promote those vendors Cimperman said. “The West Side Banking Company south end. who offer fresh, local products.” Market feeds the system and the nnnnä££ÈÈÈÊUÊÜÜÜ°`ìwi`L>°V The seven winning businesses In fact, $12,000 of the Charter community. will occupy six vacant storefronts, One money has been allocated to “It is really like the sun, and all `ìwi`ÊUÊ >À`ÊUÊ `` ww ` iÜLÕÀÞÊUÊ"ÀÜiÊUÊ >ÌÕ>ÊUÊ>ÀÀiÌÌÃÛiÊUÊ ÀÌ>` leaving the Market District with E4S, a local economic develop- these businesses are like all these seven remaining vacancies out of a ment organization, which will use wonderful planets orbiting around total of 63 storefronts, according to the funds to study how local food the sun.” ■ 20110314-NEWS--21-NAT-CCI-CL_-- 3/10/2011 9:41 AM Page 1

MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 SMALL BUSINESS Be aware of any health reform-related tax changes

s the practical realities of implement the new reporting advocates to continue to press for grasp the value of the untaxed health care reform begin PETERDEMARCO process. permanent relief from the reporting benefit they receive. to sink in, authorities are Most companies still have a lot requirement. Congress has a long- While business owners hope taking steps to roll back of questions about how to estab- range plan to eventually begin for permanent relief from both someA of the more onerous tax lish values for health benefits, taxing the value of health benefits of these reporting requirements, reporting requirements the reform especially when they offer benefits provided to employees, beginning they still are required by law. It’s originally imposed. through a multi-employer plan in with “Cadillac” plans, or those that important to watch for develop- Most notably, the House of Rep- which the distinction between cost provide especially generous bene- ments, but it’s also still important resentatives is considering a repeal and value can be a little more diffi- fits, in 2018. to continue preparing to comply of the 1099 reporting requirement cult to determine. The IRS and the Congress tends to view health with both of them. ■ contained in the Patient Protection TAX TIPS U.S. Treasury are expected to issue benefits as an untaxed form of and Affordable Care Act that was further guidance on these and compensation, but it expects plenty Mr. DeMarco is vice president and signed into law in March 2010. The The delay gives employers, software other questions to help smooth of objections to taxing health director of tax services for the House Committee on Ways and providers and third-party service over implementation in 2012. insurance. It established the regional accounting and business Means recently recommended a new providers, like payroll services, Of course, the delay also gives reporting requirement with health consulting firm of Meaden & Moore, law to the full House, and the Senate additional time to prepare for and more time for business and labor reform to help employees begin to headquartered in Cleveland. is working on a similar measure. As a way to raise revenue to support broader health care coverage, Congress included in the health reform bill a requirement that all “persons” (including corporations) engaged in a trade or business issue 1099 forms to any provider of goods or services for whom payments over the course of the year exceed $600. Currently, companies are required to issue 1099s to independent contractors to help the Internal Revenue Service keep tabs on self- employed individuals and to ensure they are reporting their income and paying taxes appropriately. By extending the reporting requirement to a much broader range of businesses, Congress hoped to improve business income reporting and raise some $17 billion over 10 years to help pay for the bill’s health care initiatives. The business community, however, erupted into protest. Whatever the objective of the requirement, the practical reality is that it would bury tax staff and the IRS in an unimaginable heap of paperwork. It doesn’t take long for any business, regardless of size, to hit a $600 threshold for doing busi- Choice. Affordability. Wellness. ness with a given vendor. To require all of that activity to be reported to the IRS would, in That's the real value of Anthem. essence, require companies of any size to report virtually every transaction that is undertaken in the With Anthem Blue Cross and Blue Shield, you can offer your employees more routine course of business. The burden of such voluminous reporting than just health coverage. You can offer them a health benefi ts package that easily would outweigh whatever provides real value…for you and for them. incremental revenue the government might expect to raise. A range of affordable health, dental, vision, life and disability plans. In a separate but related matter, the IRS has delayed for at least a year Wellness care resources and tools your employees can use the requirement for all companies to report the value of any health to live healthier. benefit they provide to employees Potential cost savings through the strength of our network. on their W-2 forms. The law originally required companies to begin Real value for your employees and the benefi ts they need. Value for your reporting on the W-2 form the value of health benefits — including any company by helping to manage costs and create healthier employees. Find health, medical and vision coverage, but not any flexible spending out more about Anthem’s complete solutions for your company today at arrangement — beginning with the anthem.com/connects2. 2011 tax year. Congress added the reporting requirement in the health reform bill not because it’s taxable, but to start drawing attention to the untaxed value of health benefits. Business and labor advocates have pushed back, describing the requirement as burdensome and unnecessary. The IRS announced recently that Life and Disability products underwritten by Anthem Life Insurance Company. Anthem Blue Cross and Blue Shield is the trade name of: In Colorado and Nevada: Rocky Mountain Hospital and Medical it would give companies another year Service, Inc. In Connecticut: Anthem Health Plans, Inc. In Indiana: Anthem Insurance Companies, Inc. In Kentucky: Anthem Health Plans of Kentucky, Inc. In Maine: Anthem Health Plans of Maine, Inc. In Missouri (excluding 30 counties in the Kansas City area): RightCHOICE® Managed Care, Inc. (RIT), Healthy Alliance® Life Insurance Company (HALIC), and HMO Missouri, Inc. RIT and certain to get their payroll systems prepared affi liates administer non-HMO benefi ts underwritten by HALIC and HMO benefi ts underwritten by HMO Missouri, Inc. RIT and certain affi liates only provide administrative services for self-funded to meet the new reporting require- plans and do not underwrite benefi ts. In New Hampshire: Anthem Health Plans of New Hampshire, Inc. In Ohio: Community Insurance Company. In Virginia: Anthem Health Plans of Virginia, Inc. trades as Anthem Blue Cross and Blue Shield in Virginia, and its service area is all of Virginia except for the City of Fairfax, the Town of Vienna, and the area east of State Route 123. In Wisconsin: Blue Cross ment. The reporting is voluntary in Blue Shield of Wisconsin (“BCBSWi”), which underwrites or administers the PPO and indemnity policies; Compcare Health Services Insurance Corporation (“Compcare”), which underwrites or administers the HMO policies; and Compcare and BCBSWi collectively, which underwrite or administer the POS policies. Independent licensees of the Blue Cross and Blue Shield Association. 2011, but still required for 2012. ®ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association. The IRS issued some guidance in OH_CrainsCleveBiz_031411 late 2010, but it came a little too late to be helpful with implementation. 20110314-NEWS--22-NAT-CCI-CL_-- 3/11/2011 10:05 AM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011 SMALL BUSINESS Do your homework before buying into a franchise LESSZARKA You may have several weeks or all the franchisor’s promises kept? Some eager proprietors end up in vulnerable months, during which ongoing Did they receive their money’s expenses can be incurred, such as worth from the franchise fee? position by not adequately researching market salaries and inventory, with little Could they have done it without or no profits for you. Will your the franchise? How accurate hen a person is unem- the hook for additional debts. They financial situation allow you to be were the estimated startup ployed for a consider- actually were worse off than had that patient? expenses? Were there any big able period of time, they done nothing. You should develop a contin- surprises? Above all, would they do just the thought of That said, for those who are gency pool of money in the event it again? goingW another few weeks or months considering buying a franchise, ADVISER that your business does not start Unfortunately, we all have seen without a paycheck is enough to here are some things to consider: generating a profit according to at least a few storefronts open, cause otherwise rational-thinking ■ First and foremost, ensure your original projected business just to see them close a few people to agree to deals from which that there is adequate demand for and marketing? These are just a plan. Running out of cash is the months later. they otherwise would have walked the product or service. You should few issues business owners must “kiss of death” for many new In many cases, it was not away. always do your own market deal with daily. If you do not have businesses. because they didn’t have a good Over the past few years I have the experience to successfully lead research. How many other prod- ■ The source of funding your product or service; they just counseled many people on various the troops, then you will need to ucts/services are in the same deal also is critical. With bank couldn’t survive long enough to franchise deals, ranging from sub find and hire someone who can. geographic market? How are they credit still relatively tight, many develop a deep customer base. shops and dry-cleaning operations ■ performing? Could the area support In addition to the franchise people turn to their 401(k)s or IRAs Establishing a successful business to carpet-cleaning enterprises. yet another direct competitor? fee, you will most likely have addi- takes time and careful planning. The upfront cost can range from as a way to finance a new business Is your offering a necessity or a tional startup expenses. Most You really need to do your as little as a few thousand dollars to venture. In the end, what originally luxury? people dramatically underestimate homework, and talk to objective as much as several hundred thou- might have appeared to be an People are not as likely to pay for these add-on costs. Some of it professionals before taking the sand dollars. “easy decision” ultimately could something that in a pinch they can could be for cosmetic improve- leap. ■ While a few of the deals reviewed wind up being a very painful do for themselves or do completely ments to an office or storefront, but were good and made sense for that lesson. without. Many franchises tend to in many cases, the “surprises” are particular individual, many of these Since retirement savings do well only during good economic related to compliance with disability Mr. Szarka, certified financial great opportunities were question- normally consist of pre-tax contri- times. access improvements, which can be planner and chartered financial able, even in good economic times, butions and growth, most of the consultant, is CEO, founder and ■ costly. let alone today. What do you know about funds withdrawn will be taxable. In co-owner of Szarka Financial ■ In many cases, the people were running a business? Just because Many franchise deals require addition, if you are under 59½ you Management in North Olmsted. simply paying money to buy you can bake a great pizza or fix additional outlays for equipment also may be subject to a 10% IRS He is an investment advisory themselves a job. a computer does not mean you and inventory. You also may incur early withdrawal penalty. representative offering securities At best, after all was said and actually can run a business. Have additional licensing fees, building Depending on your tax bracket, and investment advisory services spent, what remained at the end you ever managed, hired and fired and business permits, or health it could cost you over $65,000 to through FSC Securities Corp., of the month often was equivalent employees? Are you familiar with department permits. In most cases end up with the $100,000 for your member FINRA/SIPC registered to what they would have earned labor laws and regulations? Can you you probably will also incur some franchise fee! investment adviser. Szarka Finan- working for someone else. At worst, create and execute a solid business legal or accounting fees. ■ A vital step is to talk to cial Management is not affiliated the franchisee made nothing, lost plan? ■ Be realistic as to when you several people who have already with FSC or registered as a broker- their initial investment and was on ■ What do you know about sales may expect positive net cash flow. bought the same franchise. Were dealer or investment adviser.

Review: Ignoring comments hurts the most

NEW NAME continued from PAGE 18 necessarily about being defensive, responding to what’s being said in review or message, you’re not just she noted, but rather about making cyberspace can go a long way. SAME TEAM losing one customer,” Dr. Daugh- the situation right. Many of the web “It’s not that a negative review erty said. “You’re potentially sites allow business owners to reply or post will instantaneously hurt losing hundreds or thousands.” to a review or privately message your business,” he said. “Ignoring the patron. it will hurt the most.” A lurking temptation “It’s really easy for a restaurant For Richard Turnbull, the growing The impact of online reviews owner or someone assigned to number of online reviews has can tempt some business owners handle customer service from the become increasingly important, to anonymously post positive digital side of things,” Ms. Marinos especially since the recession hit. feedback online, but marketing said. “Because it is small, that one The owner of the Stone Gables Bed experts caution against such moves. person can really have an effect on and Breakfast in Cleveland’s Ohio Aside from the possibility of being their business.” City neighborhood said people are unmasked and putting one’s repu- However, not all business owners flocking to sites such as TripAdvisor. tation at stake, phony endorse- feel the need to personally reply to com before making a decision how ments could result in a slap on the every nitpicky comment. Joshua to spend their money. wrist from the Federal Trade Montague, who co-owns Lilly Hand- “People are more picky with what Commission, the agency that reg- made Chocolates along with his they’re doing with their money,” ulates deceptive trade practices. wife, Amanda, said doing so would said Mr. Turnbull, adding that about In August, the FTC settled with a go against the concept of sites 90% of his guests say they chose public relations agency hired by a such as Yelp. It’s a place for con- his bed and breakfast because of a video game company to post posi- sumers to voice their opinions — review they read online. tive reviews for a product on not the business owner, he added. Social media portals have become Apple’s iTunes store. The agency “That’s something you handle a growing factor in businesses’ determined that the reviews personally if the person comes marketing strategies, and experts Herbruck Alder is proud to join the violated long-held principles of back,” Mr. Montague said. say those that fail to ride the digital wave do so at their own peril. Gallagher Benefit Services, Inc. team. “truth in advertising.” Here to stay Alexa Marinos, an account “We’ve definitely embraced it,” Thinking ahead to bring national employee manager at the digital marketing Most importantly, and perhaps Mr. Montague said about his busi- benefit resources to Northeast Ohio. agency thunder::tech in Cleveland, quite obviously, businesses need ness’ use. “We’re of that generation, said the wiser approach is to reply to have a good product and strong and I can see other generations to the negative reviews to see if the customer service, according to Dr. like my parents using it, too. They situation can be remedied. It’s not Daugherty, but monitoring and get it.” ■ HEALTH CARE HEROES Crain’s Cleveland Business on May The nomination period runs through New this year to the section is a Formerly 2 will publish its Health Care Heroes March 25. Crain’s will honor people category called Wellness that will section, and we’re seeking nominations and institutions in the following honor the region’s Healthiest www.herbruckalder.com 216-623-2600 to help identify honorees among the categories: Advancements in Health Employer. dedicated professionals who work in Care, Allied Health, Health Care To nominate your hero, go to 1100 SUPERIOR AVENUE EAST, SUITE 1700 Northeast Ohio’s world-class medical Advocate, Nurse, Physician and www.CrainsCleveland.com/ CLEVELAND, OHIO 44114-2521 and wellness communities. Volunteer. HealthCareHeroes. 20110314-NEWS--23-NAT-CCI-CL_-- 3/11/2011 9:58 AM Page 1

MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 SMALL BUSINESS

faith, coverage disputes and profes- GRANDOPENINGS sional liability. Phone 216-772-3112 Cleveland 44105 Fax 216-672-4459 CRAFTY GOODNESS www.expressmessengerllc.com 15621 Madison Ave. Express Messenger is a boutique, Lakewood 44107 concierge messenger and courier RED INK COMMUNICATIONS LLC www.craftygoodnesscleveland service owned by Cindy Halle and 2926 State Road, Unit 123 .com Broock Munro. The business special- Cuyahoga Falls 44223 www.facebook.com/ izes in the following services: local www.redinkcomm.com craftygoodnesscleveland and regional deliveries; logistical Red Ink Communications is a copywriting www.twitter.com/CGCleveland distribution solutions; same-day and marketing communications firm Crafty Goodness is a new retail estab- route delivery solutions; time-critical Lakewood- serving the advertising industry and lishment in Lakewood that is owned by parts and supplies warehousing and based Crafty marketing clients, with an emphasis Chris Sorensen and Joanna and fulfillment; and outsourcing of delivery, Goodness on the plastics and building products Matthew Orgovan. Crafty Goodness mailroom, shipping and receiving. carries only industries. Red Ink provides full-service carries only locally made goods from Phone 216-662-7252 or locally made writing and editing for a variety of pro- artisans who reside in Northeast Ohio. 216-798-5375 goods from jects, including web site development, More than 60 artists from seven Fax 216-662-9101 artisans who informational brochures and newsletters, Northeast Ohio counties are repre- [email protected] reside in news releases, video scripts, white sented. An extensive art gallery Northeast papers, promotional materials, adver- adorns the walls of Crafty Goodness, Ohio. HOLLINGER STRATEGIES tisements and more. Matt Griswold is representing a number of artists, some PHOTO PROVIDED Red Ink’s president and owner. Mr. who already have gained recognition 6009 Landerhaven Drive, A1 Griswold’s editorial experience and some who are up-and-coming. Mayfield Heights 44124 includes work for the Akron-based Traditional canvas and panel art, 3-D Hollinger Strategies, under the direc- CROSSFIT INDEPENDENCE ANKUDA, STADLER, MOELLER Plastics News, The Bradenton Herald mixed-media pieces, photographic tion of firm president Tiffany L. 5572 Brecksville Road & TYMINSKI LLC in Bradenton, Fla., and for The Quad compositions, uniquely applied original Hollinger, aims to provide a holistic, Independence 44131 815 Superior Ave., City Times in Davenport, Iowa. screen prints and wood-carved and goals-based approach to financial www.crossfit-independence.com 1615 Superior Building 330-883-5655 burned wall decorations are among planning for individuals and business Local fitness professional Joel Woods Cleveland 44114 [email protected] the art pieces available at the shop. owners. The firm’s scope of services has opened CrossFit Independence, www.asmtlaw.com Crafty Goodness also specializes in includes investments (stocks, bonds, a 4,400-square-foot facility. CrossFit Ankuda, Stadler, Moeller & Tyminski To submit a new business, send the hosting a variety of art- and craft-related mutual funds and annuities), retire- is labeled as the “Sport of Fitness,” LLC is a civil litigation defense firm following information by e-mail to classes that consumers of all ages ment planning (401(k), IRAs, rollovers with dynamic methods, movements, focused on the defense of insurance Amy Ann Stoessel at astoessel@ can take. The majority of classes are and pensions), estate planning (wills, group classes and coaching. Mr. carriers, their insureds, self-insureds crain.com: business name; address; organized in a make-and-take format, trusts and power of attorney) and Woods says he was drawn to and businesses. The firm defends mat- city and ZIP; web site; brief descrip- in which each student takes his or her insurance (life, health, long-term care CrossFit because of its approach to ters stemming from catastrophic loss, tion of business; business phone creation home. and disability). Ms. Hollinger has more building fitness communities of people product defect, trucking and trans- number; business fax number; busi- 216-226-4880 than 15 years of financial service who work together, encourage each portation, construction errors and ness e-mail address; and date that [email protected] experience, having worked in the other and embrace the CrossFit omissions, automobile liability, home- business opened. Call 216-771-5155 Washington, D.C., area for the past fitness lifestyle. owner liability, first and third-party bad with questions. five years. EXPRESS MESSENGER 440-681-2285 440-506-3088 4765 E. 131st St. [email protected] [email protected]

SHORT TAKES Salad Co. was founded last year by CreatingValue. Joe Joltin. The ETON location will be ■ MOTHER ALWAYS KNOWS BEST: the company’s third in Northeast Ohio, For years, Northeast Ohio residents with storefront locations (both approxi- Sally Koepke and her mother, Pat mately 900 square feet) in North Olmst- Hurley, have shared a passion for ed and Strongsville. cooking. Today, that interest is starting Plans call for Vegan Sweet Tooth and to spice up gourmet food and gift shops Chop It Salad Co. to open jointly in May. in a growing number of states. Recently, two Cleveland-area Whole ■ DEVELOPING STORY: Training@ Foods Markets, a Columbus Whole Foods Work, LLC, a Twinsburg-based training Market and two Cincinnati Whole Foods and consulting business, is launching Markets began stocking the Newbury- the Training@Work Professional based Mom’s Gourmet custom-made Development Institute to help organi- seasonings and sauce. Other recent zations of all sizes develop their retail additions have included Whole employees. Workshops will begin in early Foods Market’s mid-Atlantic region, a PHOTO PROVIDED April and will focus on the core skills chain of markets in Michigan as well as Mom's Gourmet co-founders Sally such as communication, change man- a retailer in New Mexico. Koepke (left), and her mother, Pat agement, conflict management and The products — which have names Hurley time management. Each of these topics like Wow-A Chihuahua and Black Dog will have one workshop for people of all Belly Rub — also have been picked up owned stores are scheduled to open at levels of experience and one specifical- by gourmet food and gift shops in ETON Chagrin Boulevard. Vegan ly for supervisors and managers. Pennsylvania, Virginia, Georgia, Mary- Sweet Tooth specializes in vegan, land, Wisconsin, California and Michigan, diabetic and gluten-free desserts. The ■ GETTING BIGGER: Semco Carbon as well as the District of Columbia. specialty bakery is owned by Rebecca has moved into a new 40,000-square- Initially, the duo’s efforts were given Bryan, a trained pastry chef and a foot facility in Lorain, more than as gifts to family and friends under the 2008 graduate of Johnson & Wales, doubling its space from its previous moniker “Mom’s Gourmet.” In 2008, and Tiffany O’Neill, who studied location. The firm, founded in 1971, What do the pair decided to take their creations commercial photography at Ohio provides custom graphite machining to the commercial stage. Ms. Koepke University. services to a variety of markets, including also is principal partner with McHale & Chop It Salad Co., meanwhile, will solar, aerospace, glass, casting/forg- Koepke Communications, a Solon-based offer signature and create-your-own ing and heat treating. The company, You Value? marketing and communications firm. salads and wraps made to order by a located in Lorain for the past 20 years, personal chopper using specialty currently employs about 25, and there ■ SALADS AND SWEETS: Two locally- knives. Based in Independence, Chop It are plans to hire additional machinists. Maybe it’s advice from accounting and tax professionals to help your SMALL BUSINESS REPORT business grow and thrive. Crain’s Cleveland Business recently Crain’s Small Business Report, spon- automatically receive the new Crain’s launched a free weekly newsletter sored by COSE, brings you the latest Small Business Report. that provides readers with informa- news and trends that affect small But if you aren’t already receiving We Value that too. tion about small business and companies and the entrepreneurial our e-mails — and come on, they’re entrepreneurship in Northeast Ohio economy. free — you can do so by visiting and beyond. If you already receive Crain’s daily www.CrainsCleveland.com/ Every Thursday at noon, the and weekly e-mail news alerts, you’ll signup. 216.241.3272 or www.meadenmoore.com 20110314-NEWS--24-NAT-CCI-CL_-- 3/9/2011 1:39 PM Page 1

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011 CREDIT UNIONS RANKED BY DEC. 31, 2010 ASSETS

Name Assets (millions) Loans Shares & deposits Address (millions) (millions) Number of Top executive Rank Phone/Web site Dec. 31, 2010 Dec. 31, 2009 % change Dec. 31, 2010 Dec. 31, 2010 members Membership groups Title Seven Seventeen Credit Union Live, work, worship, attend school in 1 3181 Larchmont Ave. NE, Warren 44483 $759.1 $765.3 -0.8% $494.7 672.6 73,761 Trumbull, Mahoning, Columbiana, Portage Gary Soukenik (330) 372-8100/www.sscu.net or central Stark County communities CEO Century Federal Credit Union Open to federal government agencies and 2 1240 E. Ninth St., Room 719, Cleveland 44199 $312.7 $310.2 0.8% $217.4 286.9 26,196 any Northeast Ohio business, association, Tony Coniglio (216) 535-3200/www.cenfedcu.org municipality or educational institution president, CEO Firestone Federal Credit Union 3 1200 Firestone Pkwy., Akron 44317 $242.2 $233.7 3.6% $45.6 209.2 12,908 Bridgestone/Firestone employees Wayne A. Chapman (330) 379-6400/www.fofcu.com president, CEO Firefighters Community Credit Union 4 2300 St. Clair Ave., Cleveland 44114 $177.0 $139.3 27.0% $127.4 156.9 24,930 Open to everyone in Cuyahoga and Lake Ben Laurendeau (216) 621-4644/www.ffcommunity.com counties president, CEO GenFed Federal Credit Union Ford, ASW, Reiter Dairy, Quality Mold, 5 85 Massillon Road, Akron 44312 $174.8 $171.7 1.8% $105.9 145.8 19,434 Rubbermaid and many other local Joyce R. Jones (330) 784-5451/www.genfed.com companies president, CEO BFG Federal Credit Union Individuals who live, work, worship, 6 445 S. Main St., Akron 44311 $168.2 $172.5 -2.5% $102.9 149.5 28,454 volunteer or attend school in Summit Michael J. Owens (330) 374-2990/www.bfgfcu.org County president, CEO Cardinal Community Credit Union All who work, live, attend school or worship 7 8500 Westport Drive, Mentor 44060 $153.7 $160.7 -4.4% $76.9 136.2 17,400 in Cuyahoga, Lake, Geauga and Ashtabula Christine Blake (440) 266-2200/www.cardinalcu.com counties president, CEO Ohio Catholic Federal Credit Union Any person connected with the Catholic 8 13623 Rockside Road, Garfield Heights 44125 $150.6 $141.2 6.6% $97.7 137.2 17,950 Diocese of Cleveland and/or Diocesan Randall A. Trimm (216) 663-6800/www.ohiocatholicfcu.com parishes, schools, or organizations CEO Lormet Community Federal Credit Union 9 2051 Cooper Foster Park Road, Amherst 44001 $144.3 $140.1 3.0% $79.6 125.1 20,900 Lorain County residents Daniel R. Cwalina (440) 960-6600/www.lormet.com president, CEO Associated School Employees Credit Union 10 1690 S. Canfield Niles Road, Youngstown 44515 $144.2 $147.5 -2.3% $83.6 127.9 22,216 Lives, works, worships or attends school in Michael Kurish (330) 792-4000/www.asecu.com Mahoning, Trumbull or Columbiana counties president, CEO Vacationland Federal Credit Union 11 2409 East Perkins Ave., Sandusky 44870 $137.8 $131.6 4.7% $80.5 124.7 15,442 Lives, works, worships or attends school in Kevin Ralofsky (419) 625-9025/www.vlfcu.org Erie County CEO School Employees Lorain County Credit Union Inc. Employees of educational entities in Lorain 12 340 Griswold Road, Elyria 44035 $133.9 $129.5 3.4% $69.5 122.9 11,775 County, other miscellaneous employer Brent T. Binkley (440) 324-3400/www.selccu.org groups president, CEO CSE Federal Credit Union (1) 13 1380 Market Ave. North, Canton 44714 $130.5 $116.3 12.2% $92.9 118.4 25,886 Open to persons who live, work, worship or R. Stanley Barnes (330) 452-9801/www.csefcu.com attend school in Stark County CEO Ohio Educational Credit Union 14 2554 E. 22nd St., Cleveland 44115 $114.8 $111.6 2.8% $92.3 104.5 20,473 Employees, students and alumni of public Jerome R. Valco (216) 621-6296/www.ohioedcu.com and private schools and colleges in Ohio CEO PSE Credit Union Inc. Anyone who lives, works, worships or 15 5225 Regency Drive, Parma 44129 $106.3 $102.0 4.2% $53.3 93.6 22,372 attends school in Cuyahoga or Medina Janice L. Thomas (440) 843-8300/www.psecreditunion.org counties president, CEO Stark Federal Credit Union(1) 16 4100 Dressler Road NW, Canton 44718 $95.4 $91.2 4.5% $32.5 83.7 12,293 Anyone who lives, works, worships or Nino J. Gemma (330) 493-8325/www.starkcu.org attends school in Stark or Carroll counties president, CEO

Best Reward Credit Union Those who live, work, worship or attend school in Cuyahoga, Lake, Geauga, John J. Shirilla 17 5681 Smith Road, Brook Park 44142 $95.1 $104.4 -9.0% $36.2 75.0 13,350 Medina, Summit, Lorain, and Portage president, CEO (216) 367-8000/www.bestrewardcu.coop counties Golden Circle Credit Union(1) 18 4118 Lincolnway E., Massillon 44646 $94.9 $98.1 -3.3% $31.7 78.9 14,982 Live in Stark County Jeffrey McClain (330) 479-3130/http://goldencirclecu.com CEO Cleveland Selfreliance Federal Credit Union 19 6108 State Road, Parma 44134 $81.9 $77.8 5.2% $46.4 68.6 4,407 Ukrainian American community Orest Liscynesky (440) 884-9111/www.clevelandselfreliance.com treasurer, manager Buckeye State Credit Union 20 155 E. Voris St., Akron 44311 $77.9 $78.0 -0.0% $45.9 64.4 19,124 Community membership in Shaker Heights N. Sue Preston (330) 253-9197/www.buckeyecu.org and Summit, Stark, and Lake counties CEO Lakeview Federal Credit Union 21 2909 State Road, Ashtabula 44004 $75.8 $70.0 8.2% $48.0 66.2 8,180 Live, work or worship in Ashtabula County Sherry S. Cornell (440) 998-2707 /www.lakeviewfcu.com CEO Towpath Credit Union(2) Lives, works, worships or attends school in 22 645 N. Main St., Akron 44310 $72.2 $67.7 6.6% $31.8 63.4 11,932 Akron, Fairlawn, Cuyahoga Falls, Bath and Alan McArthur (330) 664-4700/www.towpathcu.com townships of Copley and Richfield CEO Taleris Credit Union Inc. Individuals who live, work, worship or 23 1250 E. Granger Road, Cleveland 44131 $71.5 $76.4 -6.4% $34.3 58.1 11,887 attend school in Cuyahoga County and Robin D. Thomas (216) 739-2300/www.taleriscu.org select groups and organizations president, CEO Unity Catholic Federal Credit Union Parishioners, families, students, employees Tamlyn M. Straight- 24 5839 Ridge Road , Parma 44129 $65.6 $64.4 1.8% $29.3 59.6 11,194 and organizations within the Catholic Schervish (440) 886-2558/www.unitycatholiccu.org Diocese of Cleveland CEO Community First(1) 25 2043 E. Prospect Road, Ashtabula 44004 $64.4 $62.5 3.0% $24.6 53.9 6,359 Live, work, worship in Ashtabula County Mike Riesterer (440) 997-5919/www.hereforeveryoneonline.com CEO Community One Credit Union of Ohio 26 6583 Frank Ave. NW, North Canton 44720 $60.3 $57.7 4.4% $23.2 55.8 5,300 Serving Stark County Evelyn L. Canterbury (330) 305-3050/www.c1cu.com president, CEO Medina County Federal Credit Union 27 1353 Reimer Road, Wadsworth 44281 $56.0 $52.1 7.5% $25.7 49.1 7,482 Open to anyone who lives, worships or Bud Herrle (330) 334-1023/www.mcfcu.com educates in Medina County chairman Eaton Family Credit Union 28 333 Babbitt Road, Euclid 44123 $48.2 $41.7 15.7% $31.6 43.7 11,857 Eaton Corp., City of Euclid, Lake County, Michael Losneck (216) 920-2000/www.eatonfamilycu.com family of existing members CEO Community Star Credit Union 29 832 Cleveland St., Elyria 44035 $47.4 $47.2 0.3% $33.6 43.8 9,241 Membership is open to the public Ernie Jackson (440) 365-7342/www.commstar.org president, CEO Emerald Group Credit Union Inc. 30 5422 E. 96th St., Suite 110, Garfield Heights 44125 $46.8 $42.2 10.9% $32.0 42.1 8,610 Individuals who live, work, worship or John R. Martin (216) 581-5581/www.emeraldgcu.com attend school in Cuyahoga County CEO Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are RESEARCHED BY Deborah W. Hillyer complete or accurate. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Information is from the National Credit Union Administration, www.ncua.gov. (2) Financial data is from American Share Insurance, www.americanshare.com. Membership number from www.creditunions.com. 20110314-NEWS--25-NAT-CCI-CL_-- 3/11/2011 1:05 PM Page 1

MARCH 14 - 20, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 25

land to greater advantage in the for a planned residential develop- Fairmount: competitive higher education arena. ment in Hiram, while the college Quick work plays well at Hiram Ronald Paprocki, senior vice presi- needed units to house a rapidly dent of administration and finance growing enrollment. continued from PAGE 3 Fairmount’s Kent plan calls for water Creek and Talbot’s women’s at the University of Rochester, said Mr. Chema said Fairmount quickly Randy Ruttenberg, a Fairmount construction of three multi-story stores serve the general community. the institution sought to develop prepared and executed a plan to principal, said the firm targeted buildings with retail space at street A key part of the planned Toledo the site to shape the environment at build a townhouse-style develop- universities as a potential market in level and office space and market- project is a two-level Barnes & its doorstep. ment housing 140 students on col- 2006, well prior to the downturn, rate apartments on upper floors. Noble Bookstore, which occupies “Our campus is embedded in the lege-owned land. By August 2009, because they present similarities to Mr. Ruttenberg is confident 16,000 square feet of that develop- city of Rochester,” Mr. Paprocki said. the $6.5 million complex was ready. urban redevelopment projects and financing for the Kent project can ment’s 20,000 square-foot retail “To have safe, vibrant neighbor- While Mr. Chema said Fairmount’s offer opportunities for prospective be closed soon, in part because component, which will have apart- hoods around our university is ability to move quickly was impor- national and regional tenants the Fairmount and partner Premier ments on the upper floors. important to our staff. Having tant for Hiram’s situation, it’s atypical firm’s principals knew. Development Co. of Cleveland have “With these bookstores, there is a amenities for students and the staff in academia, especially for hard- Not all the effort went into typical raised the equity for the project and growing trend to bring the university is also important.” driving types such as realty developers. development tasks; Mr. Ruttenberg leased 87% of the 197,000-square- bookstore out of the student center Fairmount was selected for the “It’s probably frustrating for them,” and others describe working in the foot complex. Pizzuti Development to help anchor college town projects,” project through a competitive Mr. Chema said. “The academy world of academia as a high barrier- Co. of Columbus is developing a Mr. Ruttenberg said. “They will also process that attracted nine developers. moves so slowly. It’s not like working to-entry market that requires com- hotel and conference center as part serve as the community bookstore “We selected Fairmount because for a government or corporate CEO. plicated land assembly and other of the complex. with community-oriented events, of the business terms — it is shoul- There are so many stakeholders to obstacles compared with greenfield Tenants lined up for Kent include such as children’s story times.” dering the financial risk of the project satisfy, such as students here who development. an Aladdin’s Eatery, a Brico Italian — and the energy and effort they want to have a voice and some role “We learned how to speak and restaurant and Dave’s Cosmic Subs. Size advantage put into the process,” Mr. Paprocki for the faculty. The effect is to slow perform in the college vernacular,” A unit of Kent-based Davey Tree Rochester provides an opportu- said. “They got immediately what everything down.” Mr. Ruttenberg said of the university Co. and Ametek Technical & Indus- nity Mr. Ruttenberg relishes because we are trying to accomplish. They For his part, Mr. Ruttenberg said market. “Working in a university trial Products, a Kent-based unit of it provides the largest site Fairmount reached out to the neighbors and he believes he could build a huge setting requires patience and trans- Berwyn, Pa.-based Ametek, also has worked on in a university setting the city in an impressive way.” shopping center in less time than parency. While there are better ways have leased most of the office space. — 16 acres now devoted to parking the typical, smaller, university to make money in our industry, it “Kent is a unique market,” Mr. lots and several old buildings. A change of pace mixed-use project takes. allows us to make contributions and Ruttenberg said. “There is a supply Thanks to the size of the parcel, the While long deliberations are However, few such things took receive minimum acceptable returns.” deficit in so many key retail areas, but project will encompass about typical for such undertakings, Hiram shape recently. Moreover, Fairmount you can’t simply count on the uni- 500,000 square feet of ground-level College president Thomas Chema likes the niche so much it will remain Beyond the schools versity to be the sole traffic driver.” retail, office and residential use. prized Fairmount’s ability to get a in the university marketplace. It Demolition of multiple old buildings For example, at one of Fairmount’s From the university’s side, the project done quickly. regularly attends higher education in the downtown Kent project early university projects at Virginia projects offer a chance to leverage In September 2008, another summits and trade fairs to prospect already is under way. Tech in Blacksburg, Va., the Cold- their strength and sometimes unused developer was unable to get funding for more projects. ■

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26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 14 - 20, 2011 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS MARCH 7 - 13 CWRU law students Michael Spivak, Class of 2009. “definitely headed in the right direction.” The law clinic provides legal services to College endowments in the aggregate saw reap client tidy sum members of the community unable to afford positive returns from every asset class The big story: American Greetings Corp. ■ Case Western Reserve University School legal counsel. — Michelle Park except for real estate over the last fiscal year, announced that Ohio will remain part of its of Law students last month obtained the which ended in June, according to a recent address, but the company isn’t ready to fill in the largest jury verdict in the Milton A. Kramer Ah, for those heady days survey from the National Association of exact city in Northeast Ohio that will serve as its Law Clinic’s history: $1.12 million. College and University Business Officers corporate home. CEO Zev Weiss wouldn’t put a A Cuyahoga County jury awarded the before the recession Commonfund Study of Endowments. Do- specific date on when American Greetings will money to a family victimized by a fraudulent ■ Endowments at Northeast Ohio’s public mestic equities provided some of the largest make its final headquarters decision. With two home-repair and financing scheme. Three and private universities are on the rebound, gains, with increases of up to 15.6%, while Chicago-area sites ruled out, American Greetings pairs of law clinic interns — most recently but they still haven’t recovered fully from investments in non-campus real estate is considering five local locations: Brooklyn, current third-year students Brant DiChiera the crippling recession. delivered a negative 15.8% return. — Timothy which has been in its home for 50 years, as well and Jennifer Hadley — have handled the Case Western Reserve University’s Magaw as Beachwood, Brecksville, Independence and case since September 2008 under the super- endowment recorded a 10.5% return on Westlake. See editorial, Page 10 vision of clinic professor Andrew Pollis. investments in 2010, which brought the Pension consultant sets endowment’s total assets as of Dec. 31 Stay tuned: Gov. John Kasich in his first State The case was tried Feb. 10 back to about $1.6 billion, according up downstate outpost of the State speech confirmed that the budget he before Cuyahoga County to chief investment officer Sally Staley. ■ will deliver to the General Assembly this week Visiting Judge John E. Corrigan. Trinity Pension Consultants Inc. in Montrose It’ll take about a year and a half of must close an $8 billion gap. Although he said he Mr. DiChiera and Ms. Hadley has expanded into Columbus. similar returns to bring the endow- planned a significant restructuring of govern- handled most of the trial, from The third-party administration firm ment back to the level before the stock ment, he only briefly discussed those plans. jury selection to closing argu- planned the move for more than a year and market plummeted in 2008, she said. Those details will wait until Mr. Kasich delivers ments. now has a full-time retirement plan consultant CWRU was able to rebuild its endowment his budget on Tuesday. After briefly recounting Hearing the verdict read, and real- working from its new office there, said by restructuring its portfolio to deliver more successes in the first seven weeks of his admin- izing the jury was granting the money Anthony Warren, principal. This summer, consistent and reliable returns instead of istration, Gov. Kasich focused on his long-term requested and more, was exciting, said Mr. Mr. Warren’s business partner, Kevin just maximizing total return at any cost, Ms. goals. “You ain’t seen nothing yet,” he said. DiChiera, who’s set to graduate in May. Bergdorf, also will make the move to Columbus “It was a great experience,” he said. “In Staley said. to add sales support and “credibility and Staying the course: First Interstate Prop- this case, we had the opportunity to go all “We’ve done a good job,” Ms. Staley said. seriousness” to the venture, Mr. Warren said. erties Ltd. plans to exercise its option to buy the the way to trial, to have it in front of eight “We’ve protected the university from the The opening of the Columbus office is 90-acre Cleveland Heights portion of the former jurors. That’s something most law students volatility of the financial markets.” part of recent growth for Trinity, which Oakwood Country Club. Lyndhurst-based First never get to experience. Other universities reported similar returns. opened in 2006. Last August, the company Interstate last December bought about 63 acres “The economy for a lot of jobs is really Among them was Kent State, which saw its moved its offices from a 1,500-square-foot of the defunct Oakwood course in South Euclid terrible right now,” Mr. DiChiera added. “Obvi- endowment rise about 15% in 2010 to finish location in Fairlawn to one in Montrose that to develop a shopping center and to donate part ously, this adds something on our résumé the year with total assets of $109.1 million. measures 5,000 square feet. It also has hired of the land to the suburb for a park. First that not a lot of people are going to have.” That’s a far cry from 2009, when Kent State’s four people in the past nine months. Interstate president Mitchell Schneider said the The other students who handled the case endowment saw a 20% decline. Gene Finn, The firm will focus on creating brand developer is continuing to look at Oakwood’s are: Aaron Minc and Alix Emerson, Class of Kent State’s vice president for institutional recognition in the Columbus and Cincinnati former clubhouse and surrounding area as a 2010, and Nakedra Byrd and the late advancement, said the endowment is markets, Mr. Warren said. — Michelle Park campus-like senior citizen housing development, though it’s still fine-tuning plans. On the move: Michael B. Petras Jr., a career WHAT’S NEW BEST OF THE BLOGS General Electric Co. executive who most recently The list is based on surveys of business was president and CEO of GE Excerpts from recent blog entries people. Twelve Ohio companies ranked Lighting, is taking the top on CrainsCleveland.com. among the top six for their particular indus- executive post at the company tries, including Goodyear Tire & Rubber Co. that owns Edgepark Medical Schools can learn a thing or (No. 2), Eaton Corp. (No. 4) and Parker Supplies and Independence two from these programs Hannifin Corp. (No. 6). Medical in Northeast Ohio. ■ Two other Northeast Ohio giants — HGI Global Holdings Inc., a Bloomberg Businessweek ranked the 50 FirstEnergy Corp. and KeyCorp provider of specialty medical best undergraduate business — each ranked as the 10th products to patients with programs in the United Petras COMPANY: TCP Inc., Aurora most-admired company in chronic diseases, named Mr. States, and two of them are in their industries. Petras its CEO effective March 21. Maryrose PRODUCT: TruDim CFL Series Ohio. The country’s most-admired Sylvester, a 23-year GE veteran, was named to At No. 22 was Miami Uni- company: Apple. (And you replace Mr. Petras at GE Lighting. TCP, a maker of energy-efficient lighting versity, where 69.7% of stu- products, hopes consumers take a shine to dents land internships and 87% land jobs, have to admire the knack the Passing grade: After months of uncertainty its new TruDim CFL series, billed as the first with median starting salaries of $47,438, company has for extracting about its future, Chancellor University in Cleve- fully dimmable compact fluorescent lamps according to the magazine. Top industries money from consumers who land announced it has maintained its accredita- available in the United States. for students there are accounting, financial must have the latest shiny gadget.) tion. The Higher Learning Commission in The CFL design “greatly improves the services and consumer products/retail. Chicago — the accrediting body for the for-profit dimming range, warm-up time and life Case Western Reserve University was institution — issued Chancellor a “show-cause” expectancy of current dimmable CFL technol- ranked No. 40. The magazine said 76% of its If only all the stocks in your order in February 2010, which gave the university ogy,” according to TCP. students land internships, while 71% land portfolio performed this well almost a year to show it’s deserving of continued “This is really an exciting improvement,” jobs with median salaries of $45,000. Top accreditation. The commission questioned says Ellis Yan, CEO of TCP. “For the first industries are financial services, technology, ■ March 9 was the two-year anniversary of whether Chancellor met accreditation criteria time, we have energy-efficient CFLs that dim science and manufacturing. the stock market bottom in the recession, related to board governance, finances and to the same low levels as incandescent Bloomberg Businessweek ranks under- and the MarketBeat blog at The Wall Street assessment of student learning. The commission bulbs.” graduate business programs in nine areas, Journal took a look at the 30 biggest movers instituted a review process that gave the school The TruDim lamps offer a long life — rated including surveys of senior business majors off that floor. several months to improve its operations and at 12,000 hours under normal use, TCP says. and corporate recruiters, median starting Cleveland-based mining company Cliffs finances. That process culminated in the decision TCP says the lamps incorporate the com- salaries for graduates, and the number of Natural Resources Inc. was one of the to remove Chancellor from show-cause status. pany’s digital InstaBright technology, which alumni each program sends to top MBA big winners, rising 629.6% to $94.56 per allows full brightness 75% faster than com- programs. share on March 1 of this year from $12.96 This and that: The Federal Aviation Admin- parable CFLs. TruDim also allows for turning It also calculates an academic quality rating on March 9, 2009, according to statistics istration awarded the city of Cleveland nearly on the lights at a low-dimming level, eliminating for each program by combining average compiled by S&P Indices. That rise was $20 million to improve the runway safety area at the need to set the dimmer to full-on when SAT scores, student-faculty ratios, class size good for 12th place on the list. Cleveland Hopkins International Airport. … the lights are turned on, the company says. in core business courses, the percentage of Two other Ohio-based com- Linda L. Bluso, partner-in-charge for the Cleve- TruDim CFLs are available in 16 watt R30, students with internships, and the number panies made the top 30: Fifth land office of Brouse McDowell, will take over as in a variety of color temperatures, from soft of hours students devote to class work. Third at No. 3, up 904%, and head of Baldwin-Wallace College’s division of white 2700-Kelvin to daylight 6500-Kelvin. Huntington Bancshares at business administration — one of the largest For information, visit www.tcpi.com. Many NE Ohio companies No. 21, up 508.3%. programs of its kind in the state. Ms. Bluso starts Commercial real estate at Baldwin-Wallace April 1, but will continue to Send new product information to managing are doing admirable work brokerage CB Richard Ellis, be of counsel with Brouse McDowell. editor Scott Suttell at [email protected]. ■ Fortune magazine released its which has offices in Cleveland annual list of the country’s and Akron, jumped 807.4%, while To keep up with local business news as it most admired companies, Ford Motor Co. rose 742.5% per share. happens, visit www.CrainsCleveland.com. and several Ohio firms made For the full report, visit the cut. http://tinyurl.com/4w88yg7. 20110314-NEWS--27-NAT-CCI-CL_-- 3/9/2011 1:40 PM Page 1 20110314-NEWS--28-NAT-CCI-CL_-- 3/9/2011 1:40 PM Page 1

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