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
Total Page:16
File Type:pdf, Size:1020Kb
20110314-NEWS--1-NAT-CCI-CL_-- 3/11/2011 3:26 PM Page 1 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 compa- nies in the region, spend its money? And what are the people of North- east Ohio getting from the organiza- tion, which receives much of its money from public sources? In the e-mails, the three entrepre- neurs — 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 asso- ciated 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 6 Looking to save money on your health insurance? NEWSPAPER 71486 01032 Look inside for more details... 0 20110314-NEWS--2-NAT-CCI-CL_-- 3/11/2011 1:40 PM Page 1 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) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation De- partment, Crain’s Cleveland Business, 1155 Gratiot Av- enue, Detroit, Michigan 48207-2912. 1-877-824-9373 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136 Audit Bureau of Circulation Key.com is a registered service mark of KeyCorp ©2011 KeyCorp. KeyBank is Member FDIC. CS10985 602407374 20110314-NEWS--3-NAT-CCI-CL_-- 3/11/2011 3:25 PM Page 1 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.