20120416-NEWS--1-NAT-CCI-CL_-- 4/13/2012 2:44 PM Page 1
$2.00/APRIL 16 - 22, 2012
INSIDE Permits for drilling down going up Mild temps force some businesses to adjust eastern half of Ohio is the Utica shale, State busy as interest in shale deposits, their ‘wet gas’ at fever pitch and it contains the “wet gas” that The sun’s been out more than Chesapeake and other drillers seek. usual in Northeast Ohio, and By DAN SHINGLER busy year ahead as drillers begin and other liquids valuable as ingre- They are already filing their paperwork nurseries, golf courses and [email protected] ramping up their request to sink dients in petrochemicals. to get it too, which is resulting in the other companies have had horizontal fracking wells in the state’s “This year, in the Utica shale, we Ohio Department of Natural Resources to adapt. PAGE 3 The nice thing about the oil and gas Utica shale region, while moving in are going to drill approximately 150 issuing more permits for the mile- ALSO: business is that it announces both new drilling rigs to act on approved wells, and the majority of those will deep fracking wells that are proving ■ its presence and its future activity, permits. be in the wet gas window,” said Matt successful at extracting natural gas, Case Western Reserve thanks to a process that requires a It’s all because drillers are flocking Sheppard, senior director of corpo- oil and other liquids from Ohio’s University researchers move state permit for all new wells. to the Utica shale and its so-called rate development for Oklahoma- shale deposits. closer to a clinical trial for their Even nicer, for Ohio at least, is “wet gas,” which includes not just based Chesapeake Energy Corp. Alzheimer’s drug. PAGE 3 that permitting activity indicates a natural gas but also butane, ethane Nearly all of the shale under the See PERMITS Page 21 Prices rise PUTTING at industrial FACES WITH firms with fear easing NAMES Former art institute director David Deming By GINGER CHRIST [email protected] expands his sculpting presence here, nationally The Distribution and Storage Group of Chart Industries Inc. is By JOEL HAMMOND going boldly where it hasn’t gone in [email protected] four years. Starting May 1, the maker of equipment for the production and ou probably know the name, storage of hydrocarbon and industrial gases plans to raise the base prices of but perhaps not the face. Or its products by as much as 5% — its more accurately, first such increase since 2008. Eric Burkland, president of the the faces. Ohio Manufacturers’ Association, YIn these parts, David said manufacturing “is rocking and Deming is best known as rolling” right now. However, manu- facturers as a whole aren’t raising president of the Cleve- prices regularly for their products, land Institute of Art, his partly out of fear they’ll jeopardize the sales gains they’ve achieved in a alma mater, a role he recovering economy. held for 12 years before But that situation may be changing, retiring in 2010. if local companies such as Chart Industries are any indication. But sculpting is his Ned Hill, dean of the Levin College passion, and he’s devel- of Urban Affairs at Cleveland State University, said the telltale sign of oped a reputation as one sustained improvement in the man- of the nation’s best. And ufacturing sector will be if enacted despite an already-robust price increases stick. “Within the manufacturing sector presence in Northeast itself, companies have had their prices Ohio, his work is about to at the absolute floor just to keep some volume going through their gain even more local exposure. plants. Margins have been squeezed Mr. Deming, whose pieces appear now for close to three years,” Dr. Hill See FACES Page 20 said. “We’ve seen in the past as the MARC GOLUB economy started to recover some Sculptor David Deming’s bronze version of Ricky Williams — pictured at right scattered attempts to increase — now is on display at Darrell K. Royal-Texas Memorial Stadium in Austin, Texas. ON THE WEB: Watch as David Deming describes the process of creating See PRICES Page 20 Mr. Deming still has the clay version of Ricky at his Lakewood studio. a 1,200-pound bronze Ricky Williams. www.CrainsCleveland.com/Ricky
16 SPECIAL SECTION 7 GAME ON!
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APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Next up for Marketing agencies CWRU docs’ find power Alzheimer’s in numbers drug: trials Recent mergers reflect growing movement to Tests show that bexarotene can ‘integrated’ formula reverse similar disease in mice By CHUCK SODER By JOEL HAMMOND [email protected] [email protected] Bexarotene works like a charm in mice, but can it It’s not so special to be special reverse Alzheimer’s in humans? any more, at least when it comes to Gary Landreth and Paige Cramer aim to find out: Cleveland’s marketing business. The two researchers and their employer, Case Western Recent mergers and one high- Reserve University, have founded a company called profile closing among Cleveland’s ReXceptor Inc., which is working to figure out whether top marketing agencies show that the cancer drug has potential to become an Alzheimer’s integration is the way of the present, drug. and may very well be a part of the future, too. They’re in the process of raising money to finance a Marcus Thomas, a 120-employee phase I clinical trial designed to show how the drug firm in Warrensville Heights, merged affects healthy people. If that small study goes well, with 17-employee DigiKnow, a digital larger studies testing the drug in Alzheimer’s patients marketing specialist, last October. In will follow. February, Cleveland-based AdCom There’s no guarantee the drug will Group merged with Warehouse Dis- make it through clinical trials, Dr. trict neighbor and public relations Landreth said, noting that many specialist LandauPR, which employs drugs that work well in mice fail in 17. humans. Meanwhile, Liggett Stashower, But it does work really, really well one of Cleveland’s best-known in mice. marketing companies, filed for After four years of testing bexarotene on hundreds of mice that Chapter 7 bankruptcy liquidation in Landreth February. were genetically engineered to develop a condition similar to Alzheimer’s, Members of those companies and MCKINLEY WILEY Drs. Landreth and Cramer have other industry observers say the Gale’s Garden Center manager Tom Krupa says the nursery has had to adjust to mild tempera- found the drug almost immediately recent activity is a result of a push tures in various ways, including hiring seasonal workers earlier. away from specialty companies, triggers their bodies to ramp up which gained prominence a decade production of a key protein called ago. The end result, in the words apolipoprotein E, or ApoE. of King Hill, formerly president at That protein helps the brain get rid DigiKnow and now a senior vice WEATHER’S of beta-amyloid protein fragments, president and digital strategist at which build up in the brains of Cramer Marcus Thomas, is a more “holistic” Alzheimer’s patients, who can’t pro- approach; in other words, more duce enough ApoE. A PLEASURE “If you had more of these garbage disposal units … resources at a single firm to better deliver on clients’ needs. things should get faster and you should get smarter,” Dr. “There’s knowing the technology Customers arrive earlier at area’s warmth-dependent businesses Landreth said. and knowing how people use it, And that’s what happened in the mice. The level of soluble beta-amyloid in their brains dropped 25% 24 which we (knew),” Mr. Hill said. “But By GINGER CHRIST every March like this.” hours after they received the drug, and the level of beta- there’s also the need to know [email protected] At his store, mild temperatures amyloid plaques in their brains fell by 75% after three something about branding and other brought customers in two weeks days. aspects, and having the capacity and n his 36 years in the nursery busi- earlier than usual looking to buy lawn Plus, the mice over time started showing improved the depth of skills to do that was ness, Tom Krupa never has seen fertilizer, grass seed, and trees and brain function. They built nests again. They more easily something we were lacking.” a March — or a winter — like the shrubs, giving the store an unexpected found their way through mazes. They even got their DigiKnow specialized in web devel- ones just past. advance on the spring season. sense of smell back. opment and digital marketing prod- IBut Mr. Krupa, manager at Gale’s In his opinion, the store’s 15% to After Dr. Cramer ran the first test four years ago, Dr. ucts. Its employees now are dispatched Garden Center in Willoughby Hills, 20% jump in sales from a typical March Landreth didn’t believe the results. more widely within Marcus Thomas isn’t complaining. was “all weather, weather, weather.” “I thought she’d screwed up,” he said. See MARKETING Page 11 “This is wonderful. This is fabulous,” Gale’s also had to begin hiring its Mr. Krupa said. “I wish we could have See WEATHER Page 14 See DRUG Page 20 THE WEEK IN QUOTES REGULAR FEATURES “Within the manufac- “The driving force “If you’re the only “When you start seeing turing sector itself, behind all of this was game in town, you’ve all those people Big Issue ...... 4 Best of the Blogs...... 23 companies have had to provide a home got a better ability to walking around on Classified...... 22 their prices at the base for when our draw people from the street, you can see Editorial...... 4 absolute floor just to alumni come back that market. ...You can boutique retailers From the Publisher...... 4 keep some volume and to get prospective be ... a mediocre prop- who can make it that Going Places ...... 13 going through their students here and keep erty and still do well.” couldn’t when cars Personal View ...... 5 Reporters’ Notebook .23 plants.” them downtown.” — Bill Eadington, director of zoomed by.” the Institute for the Study of Tax Liens...... 12 — Ned Hill, dean of the Levin — Gene Finn, vice president Gambling and Commercial — Matt Cullen, president and The Week ...... 23 College of Urban Affairs at Cleve- for advancement at Kent State Gaming at the University of chief operating officer of Horse- land State University. Page One University. Page 7 Nevada, Reno. Page 15 shoe Casino Cleveland partner What’s New ...... 23 Rock Gaming LLC. Page 17 20120416-NEWS--4-NAT-CCI-CL_-- 4/13/2012 10:01 AM Page 1
4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16 - 22, 2012
PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Big money ature abhors a vacuum. So, apparently, do casino operators, who eagerly are lining up to fill the geographic voids in Ohio where full-service casinos will not be operating. NFranklin County Common Pleas Court Judge Timothy Horton can stop them. Our hope is that he does, although a peculiar yet powerful array of forces is telling him he should not. Ohio voters in November 2009 gave their nod of approval to full-service casinos in Cleveland, FROM THE PUBLISHER Cincinnati, Columbus and Toledo. For the pro- casino interests, led by Cleveland Cavaliers majority owner Dan Gilbert and Penn National Gaming Inc., it was a case of good timing. They made the persua- Hop on those who abuse tax breaks sive case during a recession-battered economy that Center issued a report analyzing how actually take back Ohio’s money from the casinos held the prospects of good-paying ov. John Kasich, who doesn’t need to be reminded to speak states use tax incentives and whether a business that fails to deliver the construction jobs while they were built, and good- up, should pay close attention they are effective tools for economic promised new jobs. paying service jobs once the casinos were open. to the latest study of the use of development. Overall, the conclusion **** Now, like a salesman who has managed to get his Gtax incentives as an economic develop- wasn’t good, as the researchers deter- WITH OBAMACARE front and center foot in the door, gaming interests want to fling the ment tool and recall a promise he’s mined that “no state ensures that policy- in the public debate, it will be interesting entryway wide open by installing thousands of made to his citizens. makers rely on good evidence about to hear what the panelists say at our video lottery terminals — aka slot machines — at Gov. Kasich, who surely cannot be put whether these investments deliver a General Counsel summit this week at Ohio’s seven horse race tracks. And the state, into any predictable political strong return.” LaCentre in Westlake. It seems that the hungry for its cut of revenue from the slots, is trying mold (witness his support of BRIAN The Pew folks credited scramble is on at every business to get to help them seal the deal — a situation that has put Mayor Jackson’s school reform TUCKER Ohio for starting to scrutinize ready for the Affordable Care Act, even plan), surprised people when whether these deductions, though the law’s very future is in the Ohio Attorney General Mike DeWine, a social con- he vowed that his JobsOhio team exemptions, tax credits and the hands of the Supreme Court. servative, in an interesting position. would examine tax breaks given like are the best and most cost- And speaking of the high court, we As the state’s legal advocate, Mr. DeWine is to companies to make certain effective way to rev up the state decided in a recent poll on Crains seeking to dismiss a lawsuit by the Ohio Roundtable that the businesses actually cre- economy, but urged the state to Cleveland.com to ask our visitors what that challenges the Ohio Lottery Commission’s right ate the jobs they promise. dig deeper and determine if the they thought the justices should do in to license the operation of the video lottery terminals, If they didn’t, the governor investment was worth the their ruling, which is expected in June. or VLTs, at the race tracks. The roundtable is a con- said, he’d claw back the money, price. The majority (57.4%) said the court servative public policy group that contends in its and that was music to my ears. Ohio finished sort of in the should throw out the law entirely, and lawsuit that Ohio voters did not envision authorizing Tax packages make me crazy because it middle of the study, which did credit 29.6% said the law should be kept in its seems that communities and states are state officials for improving the tracking entirety. The remaining 13% said the court slots-type gambling when they OK’d the establish- simply giving away money they can’t of money spent on incentives. The Kasich should force Congress to modify the law. ment of the Ohio Lottery nearly 40 years ago. afford. But nobody knows how to stop it administration and JobsOhio officials Visit our website, vote in the current Despite the Roundtable’s lawsuit, which is in because no state wants to be the first to say that will get better in the future, and poll, and you’ll be able to see the results Judge Horton’s court, gambling interests are working turn away a business that’s dangling they should be encouraged to monitor of a lot of fascinating polls over the past on alliances that would allow them to cash in on the hundreds of good-paying jobs as a prize. and challenge these giveaways; I look few weeks. I’ll bet you’ll be surprised at opportunity to reap big money from the video slots. So last week, the respected Pew Research forward to the first time state officials some of the opinions expressed. ■ For example, Hard Rock International, owner of the Hard Rock restaurant, hotel and casino chain, said two weeks ago that it’s planning a $275 million THE BIG ISSUE “gaming and entertainment facility” at Northfield Park race track in Northfield. Hard Rock said it has Would you bet that Cleveland’s casino will have a more positive or more negative impact on the city and its people? formed a partnership with Brock Milstein, owner of the harness track, to develop the project, provided there’s what it called “a successful resolution” of the VLT lawsuit. Other gaming interests also are jockeying for position to set up “racinos,” as the combined race tracks and slot parlors are called, in locations away from the full-service casinos. Penn National, for one, plans to move its Beulah Park race track from Grove City, near Columbus, to Austintown, which is near Youngstown, and its Raceway Park from DEBBIE FELLER RANDY MCGHEE BRIAN BLOOM STUART GARSON Toledo to Dayton. Madison Willoughby Rocky River Moreland Hills Voters didn’t authorize this proliferation of gaming when they said yes to the four casinos, which likely It will be awesome. Anything I think it will be good. Dan I think it’s going to be pretty I think it will have a positive that brings people downtown Gilbert can’t keep all the money good. It’s going to attract a lot effect. Now we’ve got to get will produce diminished economic benefits for their will be a good thing. A lot of to himself. There will be the more people to Cleveland and the convention business. It will respective cities if racinos are allowed to pop up people don’t know about all the money he pays for taxes and could become an economic help sell the convention center across Ohio. Judge Horton should give voters the restaurants and the number of what people pay for entertain- engine for the city. ... I do have because it will give people one chance to have their say on the expansion of the people living in downtown ment that will put money into concerns about gambling and more thing to do while they lottery to include VLTs by finding in favor of the Cleveland now. the system. the bad habits it brings. are here. Ohio Roundtable in its lawsuit. ➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. 20120416-NEWS--5-NAT-CCI-CL_-- 4/12/2012 2:25 PM Page 1
APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5
PERSONAL VIEW Cleveland must be better at attracting immigrants 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 By RICHARD HERMAN Mr. Herman is a Cleveland immigration lawyer and a former board member of Global Cleveland recently opened Phone: (216) 522-1383 and ROBERTO TORRES Global Cleveland. Mr. Torres is a former economic development director for the city its offices on Euclid Avenue near Fax: (216) 694-4264 of Canton and is president of T & R Group LLC, a consulting firm that specializes in Public Square to much fanfare. www.crainscleveland.com he mayor of Baltimore Those of us who worked for years to Latino and international business development. Publisher/editorial director: recently announced plans create an international welcome Brian D. Tucker ([email protected]) to attract 10,000 new fami- Thanks to newly arrived cultures, Cleveland’s population plummeted center are so far unimpressed. Editor: lies to her city in the next 10 Philadelphia added population last to 397,000 by 2010, the second- Instead of throwing out a welcome Mark Dodosh ([email protected]) Tyears. Mayor Stephanie Rawlings- decade for the first time in 60 years. largest decline of any major American mat to immigrants and refugees Managing editor: Blake told members of Baltimore’s The strategy of attracting immi- city not hit by a hurricane. and branding Cleveland an immi- Scott Suttell ([email protected]) Latino community that they are grants to repopulate and revitalize In the recent past, Cleveland Mayor grant-friendly city, the staff at the Sections editor: Amy Ann Stoessel ([email protected]) critical to this new initiative to reverse a city is not new. Former Cleveland Frank Jackson and Cuyahoga County Welcome Hub talk about attracting Assistant editor: population decline and grow the Mayor Jane Campbell once vowed Executive Ed FitzGerald have “newcomers” and “boomerangers,” Joel Hammond ([email protected]) economy. to push the city’s population back expressed support for welcoming especially those who can work in Sports Philadelphia Mayor Michael Nutter over 500,000, in part, by welcoming immigrants, but they apparently the region’s medical and biotech- Senior reporter: has waged a similar repopulation immigrant families and immigrant have delegated that task to Global nology fields. Stan Bullard ([email protected]) Real estate and construction strategy, aggressively targeting im- entrepreneurs. Most of the civic Cleveland, which does not seem to We need everyone we can get, Reporters: migrants, and with profound effect. leadership ignored her idea, and be doing the job. See VIEW Page 6 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 Ginger Christ ([email protected]) General Assignment Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing director: Lori Grim ([email protected]) Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events coordinator: Jessica Snyder ([email protected]) Advertising sales manager: Nicole Mastrangelo ([email protected]) Senior account executive: Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Office coordinator: Toni Coleman ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) You expect us Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: to focus on you, Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) your company Credit: Todd Masura, 313-446-6097 ([email protected]) and your industry. Audience development manager: Erin Miller ([email protected]) In that order. Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President That’s KeyBank. Here, your success is our priority. Merrilee Crain: Secretary We provide you with an experienced banker who gives Mary Kay Crain: Treasurer William A. Morrow: you access to product and industry experts, and Key’s Executive vice president/operations executive leadership. Brian D. Tucker: Vice president So whether it’s meeting your capital needs or advising Robert C. Adams: Group vice president you on strategic acquisitions through our affiliate, technology, circulation, manufacturing KeyBanc Capital Markets Inc., you’ll always feel like Paul Dalpiaz: Chief Information Officer you’re a priority. Because you are. Dave Kamis: Vice president/production & manufacturing We’re not just the bank you deserve. We’re what you expect. G.D. Crain Jr. Founder (1885-1973) To learn more, visit key.com/whatyouexpect. Mrs. G.D. Crain Jr. Chairman (1911-1996)
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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16 - 22, 2012 Local execs back Romney, Mandel
Sen. Brown’s campaign brought in “Sandy” Cutler, FirstEnergy Corp. Obama ignored as early $23,000 from local executives. president and CEO Anthony Alex- contributions from area’s The same pool of executives ander and Timken Co. president and contributed $20,051 to former CEO James Griffith — all declined top leaders go to GOP Massachusetts Gov. Mitt Romney, through their company spokespeo- the presumptive Republican presi- ple to comment on their donations. candidates, committees dential nominee. As of last week, FirstEnergy’s Mr. Alexander con- none had contributed to President tributed $2,500 to Sen. Brown, By TIMOTHY MAGAW Barack Obama’s campaign. $30,800 to the Republican National [email protected] “The pattern doesn’t surprise Committee, $20,000 to the National me,” said John Green, a campaign Republican Senatorial Committee Though it’s early in the 2012 elec- finance expert and director of the and $5,000 to the National Republi- tion cycle, the top executives of Ray C. Bliss Institute of Applied can Congressional Committee. Northeast Ohio’s public companies Politics at the University of Akron. Eaton’s Mr. Cutler contributed appear to be lining up behind the “(Former) Gov. Romney has good $2,500 to Mr. Romney, $5,000 to Mr. Republican Party’s standard-bearers, connections with the business com- Mandel, $20,800 to the Republican at least with their checkbooks. munity.” National Committee, $30,400 to the According to Crain’s research of Crain’s research looked at dona- National Republican Senatorial Federal Election Commission filings, tions to presidential and Ohio Committee and $1,500 to the Ohio the top executives at Northeast Ohio’s senatorial candidates, major political Republican Party. public companies contributed a parties and their respective con- Timken’s Mr. Griffith contributed combined $38,250 to the campaign gressional and senatorial campaign $2,500 to Mr. Mandel, $30,800 to the of Josh Mandel, the Republican state committees. National Republican Congressional treasurer who wants to unseat De- The three largest donors — Eaton Committee and $9,200 to the Ohio mocratic U.S. Sen. Sherrod Brown. Corp. chairman and CEO Alexander Republican Party. ■
Bizdom Cleveland accelerator chooses first startup class
Dan Gilbert’s entre- relationship- SafeCare, which helps health care ON THE WEB Story from preneurship accelera- based online facilities with background checks www.CrainsCleveland.com. tor, Bizdom Cleveland, giving; BOOM, of job candidates; and On Demand has announced its first class of six which uses social media to help Interpretation Services, which pro- startups that it will help launch. residential property managers vides qualified interpreters who Bizdom invests up to $25,000 in communicate with and retain tenants; speak 170 languages for remote each of the businesses. After three InStoreFinance, which helps retailers teleconferencing for courts and other months, they will be given the oppor- with an in-store, consumer credit judicial programs. tunity to pitch to other investors. program for hard-to-finance cus- Mr. Gilbert, majority owner of the They are BigRiver, which helps tomers; Urban Matrix, which provides Cleveland Cavaliers, started the nonprofits raise money through indoor, digital “billboards” to retailers; program in Detroit in 2007.
View: Group losing immigrant focus
continued from PAGE 5 Curiously, Global Cleveland’s certainly, but focusing on a highly leaders rarely use the “I” word to educated few is not the answer. This describe their plans and programs. timid approach does little to attract This omission is shocking. Global the kinds of numbers Cleveland Cleveland grew out of a grassroots needs just to sustain itself, let alone movement to revitalize Cleveland by RTA is helping repopulate and soar. welcoming immigrants and refugees. Contrast that effort with what is The founders were inspired by the happening in Dayton and Detroit, Welcoming Center for New Penn- where civic initiatives invite a new sylvanians, which helped revive Sherwin-Williams generation of immigrants to buy Philadelphia, and a 2010 plan and renovate abandoned homes, crafted by the Jewish Federation of build neighborhoods, launch busi- Cleveland that is bluntly titled, nesses and join the mosaic. “Cleveland Needs More Immi- paint the town green. Global Detroit was, in fact, devel- grants: Why and How to Welcome oped in part by Clevelanders More Foreign-Born Residents.” who couldn’t find support in Cleve- Now we are at an inflection point. land. We hope Global Cleveland can The Detroit initiative, led by Steve recapture the community-driven Tobocman, former majority leader conversation focused on creating of the Michigan House of Represen- an immigrant-friendly city. To do tatives, has sparked widespread this, it will need an urban revitaliza- interest in the power of immigrants. tion strategy, as well as an appeal to RTA’s Ready to Ride Program has made it easier than ever for Detroit Mayor Dave Bing plans to Latinos, the most powerful demo- Sherwin-Williams employees to reduce their carbon footprints and launch soon an Office of Immigrant graphic force in America today. Affairs. The Republican governor of We should welcome all immi- save money by riding RTA to work. It features: Michigan, Rick Snyder, now likes grants, even those who don’t have to refer to himself as the “most advanced degrees. Most of our Two Free Work Personal Trip pro-immigrant governor in the ancestors arrived in America with Week Passes Transit Planner country.” He recently launched a only grit and determination. Many Assistant statewide initiative, Global Michigan. of them started businesses and Dayton Mayor Gary Leitzell likes raised children who accomplished to go on national television and say great things. We should keep this in that he looks at immigrants and sees mind, as we prepare to demolish Now that’s a commute with low V.O.C. and high R.O.I. a path to a more entrepreneurial, thousands of abandoned but inhab- So who’s next? Ask your employer about RTA’s Ready to Ride Program today. global and diverse future. He is fond itable homes that could house of quoting studies saying that immi- Cleveland’s new immigrant families grants are twice as likely to start a and taxpayers, but instead seem business as native-born Americans. slated to become urban farms. ■
Get Ready To Ride. 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 FOR MORE INFORMATION, contact Jim Frick, RTA Sales Director, at 216.781.4764 or [email protected]. e-mail: [email protected] 20120416-NEWS--7-NAT-CCI-CL_-- 4/13/2012 1:03 PM Page 1
APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Universities turn eye toward hospitality with hotel plans
ation generated about $1.1 million revenue generator because two Kent, Akron, CSU in gross revenue over the university’s corporations — Davey Tree Expert last fiscal year, which ended June 30. Co. of Kent and Ametek Technical & see facilities as way Also, the added rooms would Industrial Products Co. of Berwyn, allow the university’s hotel to fran- Pa. — will have offices housed at the to increase revenues chise with a major hotel operator, Fairmount Properties development such as a Hilton or Marriott. The across the street. By TIMOTHY MAGAW prospect of teaming up with a “We’ll be marketing this much [email protected] national brand would bring in more wider than just the university,” Mr. customers and heighten the hotel’s Finn said. “This is a 300-seat capacity Northeast Ohio’s public universities profile, Mr. Curtis said. ballroom and conference center. It are checking into the hotel business. “What that does is get you into should be a pretty user-friendly space.” While each hotel differs in size and their national and even international Rather than build a new hotel scope, Cleveland State University, reservation systems, which is a like Kent State, Cleveland State is the University of Akron and Kent big item,” he said. “It also gets you exploring the idea of hiring a developer State University all have invested in into their points systems, which is to sublease the roughly 100-year-old their own projects. Such moves, another big item.” Mather Mansion it owns on Euclid university officials said, are intended Avenue and convert it into a boutique to inject more revenue into their The boutique approach hotel at a cost of about $10 million, coffers and to help them serve the CRAIN’S FILE PHOTO Slated to open in spring 2013, according to Jack Boyle, Cleveland thousands of visitors funneling through The University of Akron is considering turning some student housing at the Kent State’s boutique hotel at the State’s retired vice president for their campuses each year. Quaker Square complex back into hotel rooms. Seen here in 2005, the Quaker intersection of Haymaker Parkway finance who is steering the project. “The driving force behind all of Square hotel had carried the Crowne Plaza brand. and Depeyster Street in Kent would Mr. Boyle said the structure, which this was to provide a home base for be the only hotel within walking was acquired by Cleveland State in when our alumni come back and to $2 million in revenue each year. grain silos are devoted to hotel distance of the university. As such, the late 1960s, could house 25 to 30 get prospective students here and Still, Mark Woodworth, president space, with 135 others reserved for Mr. Finn said Kent State’s founda- hotel rooms. If an addition was added, keep them downtown,” said Gene of Atlanta-based PKF Hospitality student housing. tion chose not to franchise with a as some developers have proposed, Finn, Kent State’s vice president for Research, said there “definitely But with a $35 million, 520-bed hotel operator because it would “cut it could house 50 to 60 rooms. Mr. advancement and executive director seems to be over the last few years residence hall expected to open this significantly” in the hotel’s revenues. Boyle expects the university will of the university’s foundation. The an elevated level of interest for col- fall, University of Akron officials are “We wanted to make sure the pick a developer by May, and a hotel latter is financing a $15.4 million, 95- leges and universities to have their “seriously exploring” the idea of branding was closely tied to the uni- could be open within the next two room hotel and conference center in own facility on or near campus.” converting some of the student versity, and it said ‘Kent State is why years if all goes according to plan. downtown Kent. rooms in Quaker Square back to the hotel exists,’” Mr. Finn said. “We feel this is the most efficient The prospect of universities build- UA ups the ante hotel space, said Ted Curtis, the Aside from serving the university’s way to turn it into a useful project that ing their own hotels or acquiring ones The University of Akron rattled school’s vice president for capital guests, Mr. Finn said Kent State’s benefits us from the standpoint that near campus — as the University of Northeast Ohio’s hospitality arena planning and facilities. hotel also is expected to be a learning someone else would be paying for Akron did in 2007 — is by no means a when it bought for $22.7 million the Mr. Curtis said the university may space for students, particularly for this, and it’d be an amenity important new phenomenon. Miami University towering Quaker Square complex in increase the number of hotel rooms students enrolled in its hospitality to the university,” he said. “Having a in Oxford has operated since the early downtown Akron’s central business to about 100 or 110 — a move that management degree program. guest location for visiting scholars 1980s the Marcum conference center district on South Broadway Street. would generate more revenue for Likewise, Mr. Finn expects the and speakers and parents is some- and hotel, which brings in more than At present, 65 rooms in the iconic the school. The 65-room hotel oper- 300-seat conference center to be a thing that we see as a positive.” ■ 20120416-NEWS--8-NAT-CCI-CL_-- 4/13/2012 4:02 PM Page 1
8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16 - 22, 2012 Teachers union makes nice, but has reform reservations
the reform plan, he was group that helped draft the the process. Mr. Quolke was adamant that the Union leader Quolke more conciliatory. He agreed plan. “To bring the teachers union in at teachers weren’t going to tear up to support the plan and “No, I don’t think this is the beginning, I don’t think there their existing contract and start says he’ll support city lobby state legislators for its where we do ‘Kumbaya’ would be an agreement,” he said after fresh. He acknowledged that the passage, even though, he and go down (to Columbus) the Thursday press conference. “I existing, 304-page contract is cum- plan, remains upset said, “This agreement is far together,” he said when think you needed a starting point bersome, but argued that it is a from perfect.” asked his view of GCP. that put a package together that reflection of a lack of trust that has about GCP’s presence Earlier in the week, Mr. “Kumbaya” is a refrain addresses quality (education) as the existed between the union and the Quolke said he expected his Quolke from a traditional African driving force in the package, and district for decades. By JAY MILLER rift with the mayor would folk song that became pop- that would have been harder to do “To me the really fresh start isn’t [email protected] be healed. ular in the 1960s as a peace move- in a bigger group.” the physical ripping up of a contract “We’re two strong-willed individ- ment anthem. Asked if he thought the business and getting down to one page,” he David Quolke has traveled a long uals,” he said. “I look out in my Last Monday, April 9, during an community and the teachers union said. “To me, ‘fresh start’ is, as a city, way in recent weeks in his relation- mind for what’s best for my members interview with Crain’s, Mr. Quolke can work together to get the legisla- how do we move forward in this ship with Cleveland Mayor Frank and Cleveland’s kids, and I think the clearly was displeased that GCP, tion passed, Mr. Roman said, “I process of collaboration?” Jackson and Eric Gordon, CEO of mayor has the same attitude.” and not the teachers union, was the hope so.” Mayor Jackson agreed to forgo the Cleveland Metropolitan School With the teachers union leader party at the table helping Mayor the Fresh Start provision. District. However, the president of throwing in with his former adver- Jackson and Mr. Gordon craft what Fresh Start a nonstarter the Cleveland Teachers Union hasn’t saries across the bargaining table, is called the Cleveland Transforma- Mayor Jackson considers passage Ready to roll been thrilled about the journey he’s the legislation needed to implement tion Plan. of the enabling state legislation as Mr. Quolke also was critical of shared with the Greater Cleveland the reform plan could wind its way “I think (GCP’s) role has been critical to his plan to ask Cleveland one of the plan’s elements, the Partnership. successfully through the General counterproductive,” Mr. Quolke voters in November for an increased Cleveland Transformation Alliance, Two months ago, Mr. Quolke wrote Assembly this spring and summer. said. “I think it’s added to the divi- tax levy to dig the district out of a which gives the private sector a key in his blog to the union’s members But Mr. Quolke isn’t embracing siveness that we’ve seen, as op- looming $65 million budget deficit. role in evaluating those charter that the Cleveland school reform the local business community so posed to pulling people together. Without that levy, the mayor believes schools that seek financial support plan that Mayor Jackson and Mr. quickly. “It added fuel to the fire of this the school district will be thrown from the district’s tax levy. Gordon presented to him Feb. 6 “is anti-teacher sentiment that we’ve into state receivership. The legisla- Mayor Jackson and Mr. Gordon not a plan to educate children in No ‘Kumbaya’ moment yet seen grow,” said Mr. Quolke, who tion and the reform plan it supports have described the alliance as a Cleveland; rather this is a plan to Even after the April 12 news con- was elected president of the 6,000- are designed in part to show voters public-private watchdog over charter blame unions and fire teachers.” ference at City Hall, Mr. Quolke member union in 2008. Mr. Quolke that the district has a plan to schools. GCP’s Mr. Roman said it is By last Thursday, though, as he sounded reluctant about working in had been a teacher of visually im- improve the quality of education in “a place where the business com- stood with the two men at Cleveland Columbus alongside lobbyists from paired students at several district the district and to get out of the aca- munity and others can directly City Hall to announce the warring the Greater Cleveland Partnership, schools. demic doldrums. engage” with the school district. sides had reached a compromise on the regional chamber of commerce GCP president Joe Roman defended The reform plan would allow the That section eventually was district more leeway in how it eval- accepted by the teachers, modified uates and assigns teachers, moving only slightly to make the work of the away from seniority as the key factor alliance more publicly transparent. in those decisions. The plan also With a united front, substitute adopts what is called a “portfolio legislation to clear the way for the approach” to school management, reform plan will be introduced in giving principals greater responsi- the General Assembly. It will replace bility over budgeting and hiring. placeholding legislation introduced In addition, it opens the door to April 4 by state Sens. Nina Turner sharing property tax money with of Cleveland and Peggy Lehner of Congratulations to new, high-quality, privately run Kettering. charter schools. Companion legislation was intro- None of those provisions were duced at the same time in the Ohio ACG Cleveland greeted warmly by the teachers House by Reps. Sandra Williams of union, and both sides have com- Cleveland and Ron Amstutz of promised on several key points. Wooster. Democrats Turner and Mr. Quolke still questions the Williams and Republican Amstutz 2012 ACG Large Chapter of the Year wisdom of allowing charter schools were at Cleveland City Hall last to use the district’s property tax rev- Thursday to lend their support to ACG (Association for Corporate Growth) is pleased to recognize ACG enue. But the most onerous section the compromise legislation. of the plan to the teachers union Mr. Quolke acknowledged last was called “Fresh Start,” a provision week that he expects to work in Cleveland as its 2012 Large Chapter of the Year. ACG is a global that would have started the next Columbus alongside business lob- round of teacher contract negotia- byists to pass the legislation. organization with 14,000 members in 56 chapters, including 500 in tions in 2013 with a blank sheet of “I think going forward they can paper. play a big role,” he said. ■ Cleveland. Members include professionals from private equity firms, corporations, and lenders that invest in middle-market companies, as GET DAILY NEWS ALERTS FROM CRAIN’S! Register for free e-mail alerts and ■ Breaking news alerts well as from law, accounting, investment banking and other advisory receive: ■ Daily headlines: Crain’s-produced ■ The Morning Roundup: The news and blog items from the day service firms. For membership information or to attend one of day’s business news from Ohio’s ■ Small Business Report: A daily papers weekly guide to small business news ACG Cleveland’s upcoming events, call (216) 696-8484 or email SIGN UP NOW AT: [email protected]. New members who join before May 30 CrainsCleveland.com/register ■ Crain’s on Twitter: @CrainsCleveland attend their first Breakfast Series event for free. ■ Crain’s on Facebook: Facebook.com/CrainsCleveland
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Thursday, April 19 Thursday, May 3 Thursday, May 17 Tuesday, June 12 Zev Weiss, CEO Panel Discussion: Daniel P. Walsh, Jr., President Networking Social Event American Greetings Manufacturing on the Greater Cleveland Region Shoreby Club Rebound in NE Ohio Huntington Bank 20120416-NEWS--9-NAT-CCI-CL_-- 4/12/2012 3:51 PM Page 1
APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Natural gas price drop sparks BHP St. Louis travel firm buys
shipping container, he said, making which has between 800 and 1,000 Hudson company’s them somewhat portable and fairly employees, depending on the pro- Twinsburg event planner easy to install even in a small footprint. ject on which it is working. But BHP electricity-producing Mr. Blair has not been marketing is an important part, Mr. Shousher By GINGER CHRIST house is in the corporate market. the systems primarily because of the said, and it allows GEM to bring a [email protected] Together, the two companies will systems draw interest low cost of gas — that’s just been a new product to clients who often garner a greater share of the market. recent bonus, he said. The real selling didn’t know it existed. When Jeff Price joined Twinsburg- “This is a growth play, a growth By DAN SHINGLER point is that the systems are reliable “Over 50% of the customers that we based Experient Inc. two years ago strategy. This is not about efficiencies [email protected] and efficient. While generating elec- show the technology to, and that’s as CEO, the event industry execu- or taking costs out,” said David tricity, the systems also can produce both engineers and end users, are un- tive was charged with repairing a Peckinpaugh, president of the 823- David Blair doesn’t pretend he hot or cold air using heat exchangers, aware of the technology,” he said. “We struggling company and readying it employee Maritz and a Cleveland saw the collapse of natural gas prices which adds to their efficiency and fit a certain size space — there are very for a sale. native. coming, but the phenomenon sure can be important to installations big systems for distributed energy, but Now, his job is done. Maritz over the last two years isn’t hurting his sales pitch these days. with large computer systems that the small to medium tier is untapped Experient, an integrated event has experienced double-digit per- “We are certainly in a position to require cool environments, he said. and unknown.” planner, was sold April 3 to another centage sales growth, fueled by the benefit from that,” Mr. Blair says “We can cut the energy a call Now, GEM and BHP might have large company in the business, St. recovery of the economy, Mr. Peck- with the subtle smile of an engineer center uses by 50%,” Mr. Blair said. some momentum. Mr. Blair said it’s Louis-based Maritz Travel, for an inpaugh said. bemused by an attractive equation. Nonstop action becoming easier to sell the systems undisclosed sum. Mr. Peckinpaugh worked at Mr. Blair’s company, Hudson-based now that a few are up and running and Under terms of the sale, Experient Experient (then known as Conferon BHP Energy, designs and installs sys- But lately, at least, some customers he can use them for demonstrations. will become a subsidiary of Maritz, Global Services) for eight years, first tems that use jet engines powered by have been using the systems to cap- And as natural gas prices continue which will assume the company’s as executive vice president of sales natural gas to make electricity, while italize on the low price of natural gas. to drop, the proposition of using the 540 employees. There were no and marketing and then as chief at the same time providing additional That includes Dominion East Ohio, systems for full-time electricity, as layoffs as a result of the deal, and marketing officer. He said the com- heating or cooling for a factory, which runs its jet engines full time to Dominion does, makes them even most of Experient’s leadership will bined power of the two brands will office, data center or other building. produce electricity for its operations more appealing, he said. remain in Twinsburg. give Maritz the leverage needed to th Mr. Blair formed the company in on East 55 Street. A single, one-mega- The system BHP installed at “This is just a great strategic alliance more aggressively move into the 2002 and uses generation equipment watt unit provides power for a 120,000- Dominion was its first one-mega- between two really powerful brands,” global market, which he sees as one made by Capstone Turbine Corp. of square-foot building that houses watt system, but it’s already working said Mr. Price, who has left Experient of the company’s key opportunities California. When BHP started, it was more than 200 employees, said Do- on another at the University of Toledo and is looking for his next business for growth. a period of cheap natural gas — like minion’s facility supervisor, Joe Staff. and hopes to secure more, similar- opportunity. “It remains to be seen Maritz plans to invest in each of today, it was selling for less than $3 “Our operation is the corporate size deals this year. Low gas prices how meteoric the growth will be.” the divisions of the company and per thousand cubic feet (MCF) — side of the gas business and we have only can help, Mr. Blair said. While Experient focuses on grow each market. but its price was more volatile and it several functions where we can’t lose “It started out as a good idea,” he said, events for associations and govern- “This is a huge statement for the ■ quickly went back up to more than power, and we have a call center and “but now it’s an even better idea.” mental agencies, Maritz’s wheel- industry,” Mr. Peckinpaugh said. ■ $6 per MCF in 2003. we can’t drop calls,” said Mr. Staff. But BHP has not sold its systems so With gas prices so low, Dominion much on price, as on performance. has been using the system not as a They are used by manufacturers, call backup, but as its main power centers, computer installations and supply, with the regular electric grid even museums that must have reli- now serving as the backup, Mr. Staff able, full-time power, Mr. Blair said. said. The jet engines have been run- Usually, they are used as backup ning nonstop almost since they were systems that quickly go to work installed last July, with no problems to providing electricity in the event of a date, he added. power outage, he said. That’s good news for BHP, as well BHP has installed the systems at as its parent, Toledo-based GEM the Toledo Museum of Art, the Uni- Inc., a construction company that versity of Toledo, Syracuse University purchased BHP in 2009 because it and at Dominion East Ohio’s admin- wanted to integrate the systems with istrative offices and call center on some of its existing clients and with East 55th Street in Cleveland. new construction projects, said GEM The systems can be as small as a sin- president Hussien Shousher. gle jet engine producing 35 kilowatts of electricity, to larger systems that use A good idea, now better multiple engines to put out as much as Both GEM and BHP are private a megawatt of power, Mr. Blair said. companies and neither discloses its Even the biggest units fit into a struc- sales. But with only about 15 employees ture designed to be the same size as a BHP is only a tiny part of GEM, Ganley Auto relocates HQ employees to Brecksville
By STAN BULLARD owner of Gateway Title & Associates [email protected] of Brecksville, went to Mercedes- Benz of Akron to see about a new car, Ganley Auto Group has moved its longtime acquaintance Ken Ganley, headquarters to a building it bought president of Ganley Auto Group, in Brecksville from its longtime Lake- said she also had something he wood home, which now is destined wanted — her building. to become a Family Dollar store. Mrs. Torchia said she has reached Joseph S. Fornal, Ganley chief a point in life where she wanted to financial officer, said the auto chain shed the real estate, so she sold the moved 25 employees, most from its property, which her husband will former Lakewood location, to the continue to manage. Gateway Title new office at 8748 Brecksville Road. will remain a tenant in the building, Among the reasons for the move she said. is that Ganley wanted a more Ganley, through Ganley Real central location, the Ganley family Estate Co., paid $900,000 March 30 lives in Brecksville, and the business for the Brecksville building. It sold would occupy less space than in its its former headquarters building former Lakewood location. The Lake- and adjoining land at 13215 Detroit wood headquarters, Ganley’s busi- Ave. to Lakewood-FDBTS LLC the ness home since the late 1970s, was same day for $550,000, according to at two dealerships the company had Cuyahoga County land records. closed in 2009. Ganley operates 28 Dru Siley, Lakewood planning and auto franchises in northern Ohio. development director, said the city Relationships also fostered this has approved plans for construction real estate deal. When Rachel Torchia, of a Family Dollar store on the site. ■ 20120416-NEWS--10-NAT-CCI-CL_-- 4/12/2012 3:37 PM Page 1
10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16 - 22, 2012 Biochemical specialist sold to Mo. firm 2 Rockside-area office New owner planning a public company that has about capacity were appealing. 9,000 employees and posted $2.5 buildings in foreclosure billion in sales last year. Rob Stern- A legacy lives on investment in Research feld will transition out of his role over Research Organics should benefit the next six months, helping prepare from Sigma-Aldrich’s global sales Limited demand hurts market in south suburbs Organics’ Cuyahoga someone else to run the operations infrastructure, Mr. Cottier said, noting Heights operation in Cuyahoga Heights. that most of the Cuyahoga Heights By STAN BULLARD rents and values in the Rockside office Rob Sternfield said he and his company’s sales come from North [email protected] market. He declined to discuss the brother, who worked for Research America. foreclosure in more detail. By CHUCK SODER Organics until 2001, weren’t looking “We are the channel; we are the The slow, upward spiral of office Mike Geller, a spokesman for [email protected] to sell the business until Sigma- access to markets outside North vacancy in the southern suburbs C-III Asset Management, an Irving, Aldrich expressed interest in buying it. America,” he said. has helped land two office buildings Texas, firm that serves as a special Rob Sternfeld is assured that his The combination makes a lot of Marvin Sternfeld founded the — the 4141 Rockside Building and servicer on distressed loans, declined father’s legacy will live on. sense, he said. For one, the SAFC unit company in 1953 to produce chemicals 6161 Oaktree Building — in Cuya- comment. He and his brother Fred on March of Sigma-Aldrich already is one of for researchers. Research Organics, hoga County Court of Common Pleas Bob Nosal, managing director of 30 sold Research Organics Inc. of Research Organics’ biggest customers. which until 1966 was called Cleveland in a foreclosure action. Grubb & Ellis Co.’s Cleveland office, Cuyahoga Heights to Sigma-Aldrich Though Sigma-Aldrich does make Chemical Laboratories, now employs Owned by a limited liability said he knows the buildings well — Corp. of St. Louis. some of the same products, the 79 people in Cuyahoga Heights. Today company led by real estate owner and he has brokered their sale for one Sigma-Aldrich plans to invest in public company wants more manu- its biggest customers are companies broker Donald King of Beachwood, party or another three times — and Research Organics’ 12-building cam- facturing capacity, Mr. Sternfeld said. that make biopharmaceuticals, diag- the buildings are the subject of a fore- believes their problem stems from pus at 4353 E. 49th St., said Rob Stern- Sigma-Aldrich also likes Research nostic reagents and cell culture media. closure lawsuit filed by U.S. Bank as the same malaise that afflicts the feld, president and CEO of Research Organics’ focus on quality control, Most of its revenue comes from the trustee and C-III Asset Management Rockside Road office market: Organics, which makes high-purity he said. Research Organics is certi- sale of buffers that control pH levels LLC as special servicer of the mort- There’s limited demand for offices. biochemicals. fied to the ISO9001:2008 standard and in media containing biological mate- gage on the properties. The lawsuit “If I were a speculative buyer, I “They’re committed to this site works to meet other quality standards rials, though it also makes amino seeks to obtain the buildings to re- would say they are worth half what and putting money into it,” he said. set by the U.S. Food & Drug Admin- acid derivatives and other biochem- coup a 2007 loan of $10 million that they used to be,” Mr. Nosal said. Gilles Cottier, an executive vice istration and the International Phar- icals. was sold in the mortgage securities Statistics from Grubb & Ellis show president at Sigma-Aldrich, confirmed maceutical Excipients Council. Rob Sternfeld said he expects busi- market. office vacancy in the south suburbs that the company plans to invest in “If there was one company on the ness at the site to “go through the The buildings, both more than 20 reached 23.9% at the end of 2011, the site this year, though he declined planet that made sense to buy us, roof” given the synergies between years old, take their names from their up a bit from 23.5% a year earlier to go into detail. this was the one,” he said. the two companies and Sigma- addresses at 6161 Oak Tree Blvd. in but much higher than the 18.7% Research Organics will join SAFC, Mr. Cottier, of Sigma-Aldrich, Aldrich’s resources. Independence and 4141 Rockside vacancy rate at the end of 2008, the custom manufacturing and ser- agreed that the acquired company’s “My father’s legacy will live on at Road in Seven Hills. when the recession was kicking into vices business unit of Sigma-Aldrich, quality systems and its manufacturing the site,” he said. ■ Both four-story buildings secure gear. Grubb & Ellis reports there is the same mortgage but fare differ- 1.2 million square feet of empty space ently in the market. The 6161 along the office corridor surrounding Oaktree Building has a vacancy rate Interstate 77, compared with nearly of about 6%, while the 4141 Rock- 900,000 square feet in 2008. side Building has a 27% vacancy Despite the latest figures, Vernon s &2%% %6%.4 s rate, according to CoStar, an online Blaze, financial coordinator for the realty data provider. city of Independence, said he sees According to the lawsuit, filed several recent leases in Independence March 16, the building owner has as reason to be optimistic. failed to make payments on the prop- “Independence’s central location erties since Jan. 1, 2011. The case was in Northeast Ohio, at two inter- assigned to Judge Janet Burnside. states, along with its very low com- Tuesday, April 24 s The InterContinental Hotel Mr. King said his investor group mercial property tax rate, is still a wants to restructure the loan because dynamite combination that is hard high vacancies have pushed down to beat,” Mr. Blaze said. ■ Economic Development: What’s Health Got to Do With It? Impact of employee wellness on community and business bottom lines
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APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 Marketing: Smaller firms can make it Benjamin Rose sells old
continued from PAGE 3 ented people who had experience in “Just being a web firm to implement DigiKnow’s expertise other industries. We needed to get or a (search engine HQ, starts on new one on the larger firm’s client teams. new business in other industries.” optimization) firm won’t Landau founder Howard Landau, The pendulum swings too, acknowledged that before his do it. You have to look By TIMOTHY MAGAW care hospital there. Kindred did not company merged with Adcom, It remains to be seen, though, just across those siloed [email protected] respond to requests for comment Landau could not deliver on certain how integrated the local marketing about what it will do with its addi- requests from clients that were business becomes. disciplines.” The Benjamin Rose Institute on tional space. outside its communications focus. Sharon Toerek, president of the – Paul Roetzer, CEO, PR 20/20 Aging has broken ground on a $7.5 Mr. Browdie said Benjamin Rose, Now, clients of each company can Cleveland chapter of the American million, 31,000-square-foot head- which offers an array of home care access Landau’s PR specialty and Advertising Federation who advises quarters in Cleveland, which the and other services for low-income Adcom’s broader list of capabilities, many marketing and communica- small, said president Jason Therrien. group’s president and CEO, Richard seniors, is poised for growth in the such as web and app development, tions firms through her work as a Mr. Therrien said a variety of pressures Browdie, said will allow the agency coming years given the push at the among other things. partner at Independence law firm on small firms and client conve- devoted to senior issues room for federal and state levels to better “The challenge for companies is Licata & Toerek, said she hasn’t nience have led to some of the recent growth. coordinate care in hopes of keeping to be consistent in how they com- seen this much volatility in the activity. Benjamin Rose last week also people out of costly health care municate,” said Mr. Landau, who industry in quite some time. “There are budgetary pressures, finalized a deal to sell for $17.4 million settings, such as nursing homes. noted that both Landau and Adcom “The pendulum is swinging, and and time and resource pressures,” its 144,000-square-foot Kethley House “Right now we see ourselves as were healthy companies that simply clients want to work with one shop said Mr. Therrien, whose company on Fairhill Road in Cleveland to having an opportunity because we saw benefits to joining forces. (that is) integrated within its own employs about 30. “Clients, too, Kindred Healthcare Inc. of Louisville, have a very long track record and “Businesses can’t have two person- four walls,” Ms. Toerek said. “Those don’t have time to deal with 10 Ky. Kethley House is the group’s high competency in coordinating alities,” he said. “It used to be easier; companies have to be a nerve center different agencies.” current headquarters and site of its multiple aspects of care,” Mr. Browdie it’s much more difficult today.” with their clients.” Mr. Therrien said thunder::tech former nursing home that closed in said. “Care coordination is the buzz- Landau and DigiKnow each were has invested in talent in different early 2006. word these days. As it happens, it’s Stuck in a pigeon hole smaller companies that merged kinds of skill sets to avoid such pit- “The proceeds of the sale will part of our DNA.” Liggett, which employed 40 as with larger companies; should we falls in client relations. liquidate our existing debt,” Mr. Mr. Browdie said the new space recently as last June, according to expect, then, that the area’s little “We had a client a few years back Browdie said. “We don’t have $17 also offers the organization the Crain’s research, filed for bankruptcy guys all will explore possible mergers? tell us they liked our model, because million burning a hole in our pocket, opportunity to expand its research after a bizarre two-week saga in Not necessarily. there was ‘one throat to choke,’” Mr. but it should allow us to liquidate operations. which managing partner David PR 20/20 president Paul Roetzer Therrien said. “We liked that. They our debt and pay for most of, but Benjamin Rose retained Herman Moore first said the company was founded the Cleveland company in told us that if there’s a problem, ‘We not all, of the new building.” Gibans Fodor Inc. of Cleveland as reorganizing around a “core team” 2005 with a hybrid, or integrated, know who to go to.’ There’s a move Since Benjamin Rose’s nursing its architect and Albert M. Higley despite widespread rumors it had approach. Since then, he’s grown to that you’re seeing in the industry home closed, Kindred has leased the Co. of Cleveland as general contractor closed. Its debts in its Feb. 3 bank- the company to 10 employees and today.” ■ space and operated its own acute- for the project. ■ ruptcy filing totaled $2.7 million; published a book detailing his plan: assets were valued at $1.42 million. “The Marketing Agency Blueprint,” Liggett shuttered due to a number a “handbook” for building hybrid of factors, according to a former firms. employee at the well-known branding “Just being a web firm or a (search specialist. engine optimization) firm or a PR The former employee, who firm won’t do it,” he said. “You have requested anonymity, said Liggett to look across these siloed disciplines.” was unwilling to lay off staff members ‘One throat to choke’ when the economy tanked, even THERE WERE 66 RELATED COMPANIES IN 32 STATES. though its move three years ago to Mr. Roetzer maintains that his a new, $2.2 million headquarters company, despite employing fewer THERE WERE MORE THAN 120 EQUITY PARTNERS. in Cleveland’s Theater District people than big companies, is increased the company’s debt. Clients capable of achieving success in any THERE WERE PURCHASE AGREEMENTS, also struggled with constant Liggett area a client demands — and can AND EMPLOYMENT AGREEMENTS employee turnover on their accounts, respond if those clients need to the former employee said. adapt quickly. AND MANUFACTURING AGREEMENTS. Yet perhaps the biggest factor “Big agencies struggle to make in Liggett’s demise, the former dramatic shifts in the way they MORE THAN 800 SEPARATE AGREEMENTS IN ALL. employee said, was the company’s operate or how their business models sole focus on brand building. The are structured,” Mr. Roetzer said. AND THE DEAL REQUIRED UNANIMOUS CONSENT. company “pigeon-holed itself” into “Agencies that are smaller, or SO HOW DID WE COMPLETE A $400 MILLION that niche, the former employee emerging firms, are better equipped. said. We change our direction quarterly if PRIVATE EQUITY TRANSACTION “(Mr. Moore) was so high on necessary.” the building brands thing; we had Cleveland-based thunder::tech, FOR A NATIONAL WINDOW COMPANY to look beyond that,” the former too, has achieved the integrated IN JUST 140 DAYS? employee said. “We had a lot of tal- model while remaining relatively
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INTERESTED? CALL TODAY, 440 575-7000 ~OR~ FOR MORE FROM OTHER COMPANIES VISIT Vorys, Sater, Seymour and Pease LLP WWW.SALESCONCEPTSINC.COM 1375 East Ninth Street 2100 One Cleveland Center Cleveland,Ohio 44114 216.479.6100 vorys.com SELL MORE. 20120416-NEWS--12-NAT-CCI-CL_-- 4/12/2012 1:36 PM Page 1
12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16 - 22, 2012
unemployment, corporate income Type: Employer’s withholding Type: Employer’s withholding TAX LIENS Amount: $76,275 Amount: $25,974 Amount: $10,344 The Internal Revenue Service filed tax Type: Employer’s withholding, failure Dimpledough LLC Construction North LLC Berry Insulation Co. liens against the following businesses to file complete return 4807 Rockside Road, Suite 370, 31100 Pinetree Road, Suite 201, 1600 E. 25th St., Cleveland in the Cuyahoga County Recorder’s Amount: $150,899 Independence Pepper Pike ID: 36-4628732 Office. The IRS files a tax lien to ID: 20-4599233 ID: 35-2317096 Date filed: Feb. 9, 2012 Affordable Supply Center Inc. Date filed: Feb. 2, 2012 Date filed: Feb. 22, 2011 Type: Employer’s withholding protect the interests of the federal nd government. The lien is a public 720 E. 152 St., Cleveland Type: Employer’s withholding Type: Employer’s withholding, Amount: $10,193 notice to creditors that the govern- ID: 20-3513654 Amount: $54,673 employer’s annual federal tax return CM Conrad Inc. ment has a claim against a company’s Date filed: Feb. 14, 2012 Amount: $25,240 MSB Holdings LLC 29691 Lorain Road, North Olmsted property. Liens reported here are Type: Employer’s withholding 24481 Detroit Road, Westlake Strebely Enterprises Inc. ID: 26-1947799 $5,000 and higher. Dates listed are Amount: $137,303 ID: 20-0897380 Mariannes Homestyle Bakery Date filed: Feb. 7, 2012 the dates the documents were filed in Inner City Development Date filed: Feb. 7, 2012 5670 Dunham Road, Type: Employer’s withholding, the Recorder’s Office. and Personal Growth Type: Employer’s withholding Maple Heights unemployment Foundation Amount: $50,306 ID: 34-1875983 Amount: $5,411 LIENS FILED 6816 Superior Ave., Cleveland Date filed: Feb. 2, 2012 ID: 04-3774516 Paul F. Smith Jr. DDS Inc. Type: Employer’s withholding IEC Technologies Corp. LIENS RELEASED Date filed: Feb. 22, 2012 20119 Farnsleigh Road, Suite 207, Amount: $16,933 19111 Detroit Road, Suite 300, Type: Employer’s withholding Shaker Heights Canvas Specialty Mfg Co. Rocky River Amount: $92,083 ID: 34-1337892 Freds Autobody Inc. ID: 31-1606584 Date filed: Feb. 7, 2012 7172 Northfield Road, Walton Hills 4045 Saint Clair Ave., Cleveland Date filed: Feb. 22, 2012 Flannerys Pub of Type: Failure to file complete return ID: 34-1829838 ID: 34-0890218 Type: Employer’s withholding Cleveland Ltd. Amount: $48,161 Date filed: Feb. 7, 2012 Date filed: Nov. 16, 2011 Amount: $330,591 323 Prospect Ave. E., Cleveland Type: Employer’s withholding Date released: Feb. 7, 2012 ID: 34-1837261 Minotas Inc. Amount: $16,185 Type: Employer’s withholding IEC Technologies Corp. Date filed: Feb. 2, 2012 734 Alpha Drive, Unit B, Amount: $24,050 19111 Detroit Road, Suite 300, Type: Employer’s withholding, Highland Heights Kyron Plating Corp. Ohio Family Realty Inc. Rocky River partnership income, failure to file ID: 04-3734800 1336 W. 114th St., Cleveland 26747 Brookpark Ext., ID: 31-1606584 complete return Date filed: Feb. 2, 2011 ID: 34-0960138 North Olmsted Date filed: Feb. 22, 2012 Amount: $91,407 Type: Employer’s withholding, Date filed: Feb. 14, 2012 ID: 42-1552978 Type: Employer’s withholding, unemployment, corporate income Type: Employer’s withholding Date filed: Feb. 9, 2007 unemployment La Veer Partners Inc., La Veer Amount: $37,549 Amount: $17,985 Date released: Feb. 22, 2012 Amount: $232,378 Childcare & Enrichment Ctr. 38679 Country Meadow Way, Tree of Hope Enrichment Westfall Legal Services Co. LPA Type: Employer’s withholding Solutions North Ridgeville Center Ltd. 75 Public Square, Cleveland Amount: $11,260 8102 Bainbridge Road, Chagrin Falls ID: 75-3251077 17877 Saint Clair Ave., Cleveland ID: 20-2368829 Varrsity Constructors LLC ID: 34-1727132 Date filed: Feb. 9, 2012 ID: 56-2330695 Date filed: Feb. 16, 2012 23209 Miles Road, Suite 2A, Date filed: Feb. 9, 2012 Type: Employer’s withholding, Date filed: Feb. 22, 2011 Type: Employer’s withholding Amount: $12,512 Cleveland ID: 20-5305272 Terra Serra LLC Café Ah-Roma Date filed: Nov. 18, 2011 38 W. Bridge St., Berea Date released: Feb. 14, 2012 ID: 34-1943631 Type: Employer’s withholding Date filed: Feb. 7, 2012 Amount: $6,134 Type: Employer’s withholding Amount: $11,254 Watsons Funeral Home Inc. If the Affordable Care Act is overturned, 10913 Superior Ave., Cleveland Lakeside Building Services Inc. ID: 34-0755005 P.O. Box 470433, Date filed: July 7, 2010 what’s next for your business? Broadview Heights Date released: Feb. 7, 2012 ID: 51-0585756 Type: Employer’s withholding Date filed: Feb. 22, 2012 Amount: $31,762 Is your firm prepared to handle a network breach? What is your greatest business challenge? What do you do if your company’s We have the team for that. directors are sued? Our client teams are focused on providing insight for your greatest business and legal challenges along with foresight for the issues on the CLE-certified Track Sessions horizon. RESERVE YOUR SPOT TODAY www.CrainsCleveland.com/Counsel A half-day summit on the challenges facing corporate
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APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13
GOING PLACES JOB CHANGES interactive designer; Derek Bryan to marketing manager; Aaron Lucas ARCHITECTURE and Steve Pfeiffer to account executives; PJ Filipowicz to creative PERSPECTUS ARCHITECTURE: director; Marisa Dalessandro to Eric Lahrmer to project director; senior marketing manager. Jennifer Gibson to interior designer. Lahrmer Gibson West Steele Jones Torok Szabo Leszcz Eisenberg TDA ARCHITECTURE: Scott NONPROFIT Danielle Szabo to community sales executive vice president, operations. Clifford to project manager. AWARDS FREE MEDICAL CLINIC OF associate. PRICE FOR PROFIT: Brad Steven NATIONAL DIVERSITY COUNCIL, GREATER CLEVELAND: Dr. Regina to partner. AUTOMOTIVE Savage to dental director. OHIO: Ruth Ramos Clifford SERVICE RGH ENTERPRISES INC.: Steve PENSKE AUTOMOTIVE GROUP: (Compass Consulting Services LLC) NORTH COAST COMMUNITY DIRECT CONSULTING ASSOCIATES: Eisenberg to vice president, general John Barner to general manager, received a 2012 Ohio Multicultural HOMES: Jan Schrag to director of Brian Horowitz to project manager, counsel. Audi Willoughby; Mike Burns to Leadership Award. marketing. health care IT practice. general manager and Todd Hartmann TALENTWISE: Hollie Zelenka to VOCATIONAL GUIDANCE to new car sales manager, Toyota of SAINT LUKE’S FOUNDATION: EMPLOYEE BENEFITS INTERNA- regional sales manager, Ohio. SERVICES: victor gelb received the Bedford; Steve Sanders to new car Heather Torok to senior program TIONAL: David N. Leszcz to principal. Herbert E. Strawbridge Lifetime sales manager, Honda of Mentor. officer, urban health and well-being. GREAT LAKES INTEGRATED: David TECHNOLOGY Achievement Award. Eckhardt to chief financial officer; THE KARCHER GROUP: Roberto EDUCATION REAL ESTATE Kostika Radivoj to executive vice Capotosto to account manager; Send information for Going Places to BALDWIN-WALLACE COLLEGE: KELLER WILLIAMS REALTY: president, sales; Robert Schultz to David Brown to account coordinator. [email protected]. Michael C. Nock to director, Black- stone LaunchPad program. KENT STATE UNIVERSITY: John L. West to Trustees Research Professor. FINANCE FIRSTMERIT CORP.: Gerald A. Buck to vice president, commercial real estate banking, Erie Shores region. You were expecting brisket, FINANCIAL SERVICE CM WEALTH ADVISORS: Cynthia G. Koury to partner. maybe? DMS MANAGEMENT SOLUTIONS: Paul A. Becker to accounting manager. MANUFACTURING BETTCHER INDUSTRIES INC.: Edward Alan Steele to director of engineering. LIBRA INDUSTRIES: Phil Jones to director of manufacturing. MARKETING FLEISHMAN-HILLARD INC.: Stephen Lee to senior vice president, corporate communications group leader. HENNES PAYNTER COMMUNICA- TIONS: Howard Fencl to vice president. QUEZ MEDIA: Shannon Colon to
ON THE WEB Story from www.CrainsCleveland.com. Ohio Legacy stock will stay on Nasdaq Ohio Legacy Corp., the Lemon North Canton-based parent company of Premier Bank Basil Salmon & Trust, has learned that its stock will remain listed on The Nasdaq Stock Market since the company has regained compli- ance with the required minimum bid price of $1 per share. In a filing with the Securities Or over-roasted chicken? Try Rock Cornish Hen with Cranberry Glaze. and Exchange Commission, Ohio Legacy revealed that it received Or Seafood Spinach Fennel Salad. Even better, try adjusting your expectations the notice from the Nasdaq on of Senior Living – at least as we do it at Menorah Park. Our amenities are as April 2. The notice cited the company's closing bid price of unexpected as our chefs’ new Signature menu. Every week night, you and more than $1 for the last 10 your family can enjoy dishes like this in any of our campus buildings, consecutive business days — from senior apartments to assisted living, rehab and nursing care. For more March 19 to March 30. The company received notice information about our services (or the Braised Osso Bucco), call 216.831.6500. on March 8 that its stock had failed to maintain the required price and that it had a period of 180 days to regain compliance. R.H. MYERS APARTMENTS | WIGGINS PLACE | STONE GARDENS | MENORAH PARK NURSING HOME | MARCUS POST-HOSPITAL REHAB CENTER Ohio Legacy's stock price was $1.08 last Thursday, April 12. 20120416-NEWS--14-NAT-CCI-CL_-- 4/12/2012 2:25 PM Page 1
14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16 - 22, 2012 Weather: Sluggish demand for wintry products hurts some continued from PAGE 3 “We were expecting Armageddon according to the seasonal work force three weeks earlier than normal. The garden weather service, and what we got was spring in March.” center ups its base staff of 12 to 15 – Jacqueline Mayo, communications director, Cleveland Hopkins workers to 50 employees during the International Airport summer. Northeast Ohio had one of the ly business on the links and at the company to a new pool of lactose- warmest winters on record, with zoo likely won’t detract from future intolerant consumers. temperatures climbing as high as revenue because At Cleveland Hopkins Interna- 83 degrees in March. Such unsea- visitors usually go to those places tional Airport, the unseasonable sonable weather created waves — multiple times a year. weather meant fewer headaches good and bad — at area businesses “We haven’t put any seasonals and greater cost savings. Because the such as Gale’s. on,” she said of adding summer weather was milder than in winters At the Cleveland Metroparks, employees. “We’re just trying to past, airlines had fewer cancella- which operates 16 reservations, deal with basically the startup of the tions and delays. The airport also eight golf courses and the Cleve- summer season two to three weeks didn’t need to run its snow plows as land Metroparks Zoo, higher before normal.” often, nor did it need to use as many chemicals to clear runways temperatures in March filled the Hot times for cold treats parks with sunbathers, picnickers and ready planes. and dog walkers. Matt Thornicroft, assistant mar- “We were expecting Armageddon And in early April, people started keting and communications man- according to the weather service, reserving picnic shelters, which ager of Cleveland-based Pierre’s Ice and what we got was spring in regularly don’t rent until mid-May, Cream Co., called the company’s March,” said Jacqueline Mayo, the for mid-April, said Jane Christyson, first-quarter sales “very pleasing. airport’s communications director. director of marketing for Cleveland “We’ve noticed an increase that The warm weather did cause a Metroparks. would be more typical of late spring few problems, though, in the form Meanwhile, the Metroparks’ volume in early spring,” Mr. Thor- of high winds, which took some of biggest revenue drivers — the zoo nicroft said, though he refused to the smaller, regional jets with turbo PHOTO PROVIDED and golf courses — are bringing in divulge sales figures. propellers out of service. Unseasonably warm weather this year has spurred higher sales at Pierre’s Ice Pierre’s strong quarter also can be Cream Co., keeping its Cleveland plant, seen above, busy. sizable increases in income. The The flip side zoo’s revenue so far this year is up attributed partly to the company’s 27% compared to the like period in new lactose-free ice cream flavors, At Cargill, which operates a rock for road salt chipped away at the to serve them,” Mr. Klein said. 2011, and golf courses are ahead of which it unveiled at the first of salt mine near the mouth of the company’s production. It cut back The Little River Pet Resort in budget. Ms. Christyson said the ear- the year. The ice cream opens the Cuyahoga River, reduced demand at all three of its mines — in Cleve- Columbia Station, meanwhile, was land, where the company employs rolling in business this winter. 200 people, Lansing, N.Y., and Avery Tim Tringhese, the resort’s owner, Island, La. said the lack of severe storms kept In addition to reducing employees’ pet owners from canceling their I research. I fulfill. hours at the three mines, Cargill travel plans, resulting in more I learn. also laid off 10% to 20% of its sustained business. And sunnier I prospect. employees in New York and weather led people to travel more, I save. Louisiana. upping the numbers of dogs being “Some days, while people were boarded. working, we weren’t bringing up “Our day care business in partic- I source. salt. We would do a lot of mainte- ular was significantly busier this I multitask. nance projects,” said spokesman winter since pet owners want to Mark Klein. “We tried to fill the time take advantage of sunny days and that way.” get their dogs out playing for the I expand. Cargill stretches its production day,” Mr. Tringhese said. I branch out. process throughout the year, ensuring The resort’s overall sales through its salt supply is ready before winter March were up 15% compared to weather hits. During the winter, the like period in 2011, while the I profit. crews typically mine six days per day care program’s sales doubled I respond. week; Cargill reduced that figure from the previous year. this past winter, though Mr. Klein The mild winter also allowed wouldn’t disclose specifics. Little River to make faster progress “If you take a long-term view of on its expansion, Mr. Tringhese I consult. the business and the long-term said. The resort, which acquired relations you have with customers, two more acres, is adding 25 guest you try to balance things out. When rooms and four play yards. The I lead. you have a year of low demand, you outdoor work wasn’t expected to be still are going to have customers finished until March or April, but next winter and you need to be able was wrapped up by January. ■ I track. I market. We’re no gamble. Sign up for Consult with one of our professionals. Cox Business I connect with Cox Business. INTERNET & PHONE And increase your odds of success. for only BECAUSEBECAUSE EVEREVERYY $ Appraisal and Consulting CONNECTIONCONNECTION MATTERSMATTERS.. 89 Corporate Services Industrial Brokerage PER MONTH/WITH 2 YEAR At Cox Business, we’re there for you with advanced and reliable communications AGREEMENT Land Development that contribute to your productivity and success. Connect today for voice, data and video. And save with our special offer, available for a limited time only. 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By JAY MILLER a late-night bite, the same situa- [email protected] tion.” And he thinks his 2:30 a.m. ith interesting food liquor license could keep the and a front door less kitchen humming into the wee than 500 feet from the hours as casino employees knock Horseshoe Casino off work and look for a place to Cleveland,W the odds are good that wind down. Pura Vida, a year-old restaurant, Winners, too, because of the will benefit from the opening of Cleveland casino’s opening are the new gambling hall. likely to be the 1,600 employees Brandt Evans isn’t expecting who keep the 2,100 slot machines thousands of customers to flock to and 93 gaming tables running his eatery. smoothly. “But if I just get 20 (customers) a Beyond those jobs and Mr. night from the casino, I’ll be happy,” Evans’ visceral enthusiasm, said the owner of the 100-seat however, predicting the economic bistro at 170 Public Square in the impact of the new casino is pretty former May Co. department store much a crapshoot. building. “For me, a casino is like any Mr. Evans, a chef trained at The other business” that opens, said Culinary Institute of America, casino researcher Douglas Walker. believes his style of presentation — “A casino is usually positive on he calls the menu’s roster of employment and wages” immedi- appetizer-size portions an “urban ately, he said. picnic” theme — will appeal to After that, said Dr. Walker, an casino-goers who may want just a associate professor of economics quick break from the slot machines at the College of Charleston (S.C.), and gaming tables. his research on the impact of “You can come in and get some gambling on a community’s appetizers, a couple cocktails and economy is inconclusive. JANET CENTURY go off and go gambling,” Mr. Evans In a chapter in the forthcoming Brandt Evans’ Pura Vida is located just across from the Horseshoe Casino Cleveland, which is said. “(And) vice versa: If you want See ECONOMY Page 16 expected to open May 14 pending final approval from the Ohio Casino Control Commission.
INSIDE Cleveland offers latest case study in urban casinos ■ BEING THE BOSS: We catch up with general manager Marcus Glover to you’ve got a better ability to draw gauge the casino’s readiness for City-center gambling locations have different characteristics, challenges people from that market, you’ve got opening. PAGE 16 pricing power. You can be, frankly, By MICHELLE PARK of cities in the United States that professor of economics who has a mediocre property and still do ■ WHAT’S NEXT?: Real estate [email protected] have been there and done that. studied the gaming industry since well.” insiders are betting that the casino More are likely to follow. the early 1970s. Of course, urban casinos pose will shake up development and retail uild a casino in the heart of There is a trend toward more “If (urban casinos) are successful, some unique challenges, Mr. leasing in downtown Cleveland. downtown, and they will urban casinos, or those built into which I think they will be, there Eadington said. Among them are PAGE 17 come. But who and at what city centers, in the United States, will be a copycat effect,” he said. parking issues, land assimilation cost? said Bill Eadington, director of the Mr. Eadington wagers that the and safety considerations. BWe’ll know soon enough. Institute for the Study of Gambling casinos in Ohio, specifically those Cleveland casino operators With the opening of the Horse- and Commercial Gaming at the opening in Cleveland and Columbus, haven’t quantified the difference in shoe Casino Cleveland mere University of Nevada, Reno. will enjoy more success than some cost they incurred by developing weeks away, this region soon will A law legalizing casinos was others. Horseshoe Cleveland in the down- be able to gauge for itself the signed in late 2011 in Massachu- “Both Cleveland and Columbus town Higbee Building instead of positives and negatives of putting setts, where the cities of Boston are a long way from competing somewhere else. However, Matt Horseshoe Casino Cincinnati a casino right smack dab in the and Springfield have been identi- casinos … whereas Cincinnati Cullen, president and chief operating middle of a city. fied as potential casino sites, and already has casinos that service officer of Rock Gaming LLC, which ■ OHIO’S OTHER PLAYERS: Sizing This breed of facility is called an there’s been a big push for urban that market, and Toledo is roughly has partnered with Caesars Enter- up the other three casinos in Ohio, in urban casino, and Detroit and casinos in Miami and New York 60 miles from Detroit,” he said. “If tainment Corp. to develop and Toledo, Columbus and Cincinnati. New Orleans are among a handful City, too, said Mr. Eadington, a you’re the only game in town, See URBAN Page 18 PAGES 18-19 20120416-NEWS--16-NAT-CCI-CL_-- 4/12/2012 1:35 PM Page 1
16 CRAIN’S CLEVELAND BUSINESS GAME ON! APRIL 16 - 22, 2012 Economy: Casino has neighbors in mind THEINTERVIEW
continued from PAGE 15 of Clarkston, Mich., Cleveland and no, is attached to Tower City Center, MARCUS G. GLOVER book, “Oxford Handbook on the Cincinnati were “two of the top it expects many out-of-towners will General manager Economics of Gambling,” Dr. feeder markets in the country for choose from among downtown’s Horseshoe Casino Cleveland Walker writes that his several studies casino customers” in 2002 and 2003. existing and planned hotels. of gambling since 1998 “suggest A Horseshoe Casino Cleveland Q What needs to happen before the that there is a short-term positive fact sheet estimates that gambling A different beast May opening? Do you have a impact of casino gambling on there will generate $100 million in David Gilbert, president of countdown? economic growth, but that the annual gaming tax revenue that Positively Cleveland, the area’s A I’m reminded every day of what effect dies out in the longer term.” will go to local government and convention and visitors’ bureau, is our opening time frame is. I don’t school districts. The casino operator not yet hearing about big expansion need a countdown. Most of the Uncertain jackpot estimates the city of Cleveland will plans from the hospitality industry physical elements are put in place. A new casino, Dr. Walker theo- get $29.7 million; Cuyahoga operators. Rather, he said, they are What’s going on inside now is what rizes, draws money from lotteries County, $18.7 million; and county taking a wait-and-see attitude. we call “punch list items.” Some and other existing gambling oper- school districts, $22.5 million. “I think it’s hard to know exactly things are being repaired, others ations and pulls entertainment what to expect,” Mr. Gilbert said. fine-tuned. We’re developing internal dollars from other activities, Outside connections “In a lot of ways this is exciting but controls and training our team to blunting any real economic growth. Like Dr. Walker, David Schwartz, unchartered territory; it’s different comply with the minimum controls Dr. Walker is even skeptical of director of the Center for Gaming from a new museum opening or a set by the Ohio Casino Control the value of the tax revenue that Research at the University of short-term event.” Commission. flows from a casino into state and Nevada Las Vegas, isn’t sold on the He is somewhat optimistic local government treasuries broader economic benefits of casinos. because of Rock Ohio’s strategy. He Q Will people know, upon walking FILE PHOTO/JASON MILLER because “casino expenditures “Basically, (casinos) would gen- said the casino is developing a inside the casino, that it’s a come at the expense of noncasino erate revenues and create jobs,” he program that will reward casino former department store? expenditures to such a large extent said. “Are they going to spark more high rollers with vouchers for meals A There are quite a few elements we want our guests to view it just as that, despite the high tax rates development? Possibly, possibly at downtown restaurants and com- that remain. Those who are inti- that. applied to casino revenue, the not, depending on whether people plimentary rooms at nearby hotels. mately familiar with the Higbee reductions in noncasino spending are going to patronize businesses Mr. Gilbert also cites the burst Building, they’ll notice the elements Q What type of general manager lead to declines in sales tax rev- outside the casino.” of hotel development and redevel- that remain, the crown molding do you aim to be? enues that are even larger.” Unlike most casino operations opment that he believes has been work, the load-bearing columns A I have a couple things that I try to However, Dr. Walker’s argument in the United States, the Cleveland spurred by the casino and the we’ve restored to their original, impart to my team. I think you’ve doesn’t consider the value of casino is in the center of the city Cleveland Medical Mart and opulent state. got to have the utmost integrity in shifting back to Cleveland the and its owners have made a Convention Center that is under anything you do. Communication spending that goes to out-of-state commitment to connect to the construction downtown. Q What population will the Cleveland is key. I think trust, accountability regional casinos, such as those in businesses outside its doors. He ticked off five hotel projects casino work to appeal to most? and collective responsibility are all Pennsylvania and West Virginia. Rock Ohio Caesars LLC, the joint that currently are under way — the A We like to view our operation and important. Having some sense of A study commissioned by the venture of Cleveland Cavaliers renovation of the former Crowne entertainment experience as empathy and caring is important. Greater Cleveland Partnership — majority owner Dan Gilbert and Plaza Hotel Cleveland City Centre, appealing to all demographics This is a very people-intensive the city’s chamber of commerce Caesars Entertainment Corp. that across from Public Auditorium; above 21. At the end of the day, we business. I’ve always told our team group — when it spearheaded an is building the Horseshoe Casino, the conversion of the Schofield are trying to drive as much traffic to members, opening up our doors is unsuccessful attempt in 2005 to has not taken the self-contained, Building at East Ninth Street and downtown as we can. We do feel like inviting someone to our home. bring casino gambling to Ohio city-within-a-city approach that Euclid Avenue; the under-con- we’ll be able to drive some national This is what I do for a living, but to estimated that neighboring states’ characterizes most casinos. struction Aloft Hotel that is part of business. We will use the city of see so many people excited to see casinos siphoned $925.5 million Rock Ohio Caesars has planned the Flats East Bank project; and Cleveland as our anchor. Instead of this asset come online is very hum- from the pockets of Ohioans, only a modest food court, which even the Tudor Arms and Court- sending direct mail pieces telling bling. which translated into $367.3 includes a Corky and Lenny’s yard hotels at University Circle. people to come to Horseshoe million in lost tax revenue. delicatessen and Michael Symon’s “You can tie the casino and Cleveland, we’ll tell them to come Q Do you gamble? If so, what’s your According to the GCP study, B Spot burger joint. And though the medical mart and convention cen- to Cleveland, visit the Rock and Roll favorite gambling experience? which was conducted by Strategic company has bought the 205-room ter to that large amount of private Hall of Fame, see your favorite play A This is my form of business. I Partner Management Consulting Ritz-Carlton Hotel that, like the casi- investment,” he said. ■ at PlayhouseSquare, and oh, by the frequent casinos to check out the way, Horseshoe Cleveland sits two competition. I cannot play at any blocks away. Our model has always Caesars casinos. But my game of been about connectivity and lever- preference is craps. I love the aging the city’s assets. number of decisions.
Q Do you have plans to combat Q What’s going to make Cleveland’s any negative social impact, casino different? namely problem gambling? A The city of Cleveland itself, which A Sure. I would be remiss if I dismissed already has world-class assets. I that problem gambling is a chal- think adding a casino operation lenge. It affects 1% of the gaming strengthens that profile. We are Bring morale up. population, but we take it very doing a casino very differently from seriously. When we see people who many places. Both Cleveland and About thirty stories. engage in compulsive gaming Cincinnati are building them behavior, we engage them. This is downtown to generate economic part of who we are. (Caesars has), development and to leverage the on each property we operate, great aspects each city has to offer. roughly 20 or so responsible gam- Building a casino in a historic bling ambassadors trained to iden- building, in a former department tify those who exhibit compulsive store, is unrivaled in any location in gaming behaviors. Our operation is this country. an entertainment experience, and — Michelle Park
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APRIL 16 - 22, 2012 GAME ON! CRAIN’S CLEVELAND BUSINESS 17 Changes ahead for already-remade downtown real estate
By STAN BULLARD market Cleveland essentially has Co. of Los Angeles. land City Planning Commission this “When you start seeing all those [email protected] not tapped for years. Mr. Pietro said LR is deciding year rejected its idea for using four people walking around on the The combined impact of the whether to sell those properties floors as a parking garage. However, street, you can see boutique retailers ome bets are being placed casino and convention center could separately from others in its a Morgan Reed executive who who can make it that couldn’t when now. Others may not be include new hotels from the Flats Cleveland portfolio that he is mar- spoke on grounds he not be identi- cars zoomed by,” Mr. Cullen said. made for years. Regardless, East Bank project on the Cuyahoga keting; those properties include fied said street-level storefronts on Although Tower City Center the opening of the Horseshoe River to Euclid and East Ninth Street. more than 600 parking spaces Prospect are another story. owner Forest City Enterprises Inc. SCasino Cleveland promises to shake nearby at a parking lot and parking “We have a number of interested has said it expects to benefit from up real estate development and re- Walk this way deck at 413-611 Huron Road. parties,” the executive said, although the start of casino gaming, the tail leasing in downtown Cleveland Tom Yablonsky, executive vice The parking lots, which serve are- Morgan Reed has not concluded company did not comment for in a way not seen for a long time. president of the Downtown Cleve- na and ballpark traffic, also are any leases so far. Noting that the this story. Forest City leased space Even for someone with the per- land Alliance and executive director expected to benefit from the advent neighborhood lacks a number of in its Higbee Building for the casino, spective of Ari Maron, a developer of the Historic Gateway and Ware- of the casino. Mr. Pietro said a total retail services, he said interest is sold its Ritz-Carlton Hotel to the who for a dozen years has lived house District neighborhood of five prospective owners are look- mainly from convenience and casino’s operators, and sold the and breathed the rebuilding of development groups, expects to see ing at the entire portfolio; two are food-store operators. casino owners acreage on Huron lower Euclid Avenue as a neigh- the casino help create a “seamless local and the rest are out of town. Matt Howells, owner of the Park Road south of Tower City for borhood, the additional buzz pedestrian experience” on Prospect He said most of the prospective Building on the corner of Ontario construction of a new casino. created by the casino is striking. from East Fourth Street to Ontario buyers, who hail from Canada to and Euclid and the adjoining Mr. Cullen said he and partner “The energy and the excitement and north on Ontario to Public both coasts, are drawn by both the Southworth Building on Ontario, Dan Gilbert do not believe they about downtown the last few Square because of real estate devel- casino and other projects in down- said he is negotiating with a couple need to own nearby properties if months have been palpable,” said opment activity along those routes. town’s $2 billion building boom. “grab-and-go” restaurants with their owners are taking steps the Mr. Maron, a partner in family- Mr. Yablonsky also believes perhaps 10 seats each for two two men believe are good. Howev- owned MRN Ltd., which created there will be a continued transfor- Ring-a-ding-ding storefronts on Ontario and hopes to er, one area Mr. Gilbert and his the East Fourth Street Neighborhood mation of Euclid Avenue from The mix of prospective retailers land a “very cool infill” retailer for partners might pursue is adding on that street and lower Euclid. Public Square east to Cleveland State is also different from what down- a tiny, 700-square-foot storefront. apartments downtown. With a 96% “We are seeing increasing interest University as a hospitality, enter- town has attracted in recent years, “The phone has been ringing off occupancy rate downtown creating in both retail leasing and residential tainment and residential corridor. said Richard Sheehan, a vice presi- the hook” with inquiries about the a shortage of places for casino work- leasing,” Mr. Maron said. A big opportunity on Prospect, dent for investment services and retail component of the multimil- ers to live, he sees apartments “as Property owners, brokers and Mr. Yablonsky said, will be the retail at Grubb & Ellis Co.’s Cleve- lion-dollar condo and apartment opportunity” for developers. downtown development experts reuse of a block of five buildings land office. National retailers are complex on Public Square, he said. Some, like Steve Calabrese, an see two stages to the casino’s im- — four of them empty — on the in the hunt for space downtown He expects to conclude leases soon, appraiser and developer who has pact on the city. First is the imme- south side of Prospect between East thanks to the casino as well as the although many prospects want to owned downtown properties for diate change in the streetscape Fourth and East Second streets. convention center, Mr. Sheehan said. wait until after the casino opens. decades, see the opening of the that should transform Ontario One of those structures — a long- Empty storefronts are available casino as just the first shot in a Street and lower Prospect Avenue vacant building at 310 Prospect — on the Prospect side of the old May ‘Deeper than the casino’ resurgence of downtown. and may help invigorate adjoining and an adjoining 16-space parking Co., 200 Euclid Ave., and at 2025 Matt Cullen, president and chief “This is far deeper than the casi- Tower City Center. lot next door has attracted the Ontario, both owned by Morgan operating officer of Horseshoe Casi- no,” Mr. Calabrese said. “A number The second stage will be when interest of two prospective devel- Reed Group of Miami Beach. no Cleveland partner Rock Gaming of things are coming together in the new Cleveland Medical Mart opers, according to Rico Pietro, a Morgan Reed continues to study LLC, said he hopes Cleveland bene- unison that will make this different and Convention Center opens next principal of the Cresco real estate whether to create apartments or a fits from what the casino is sure to from past periods when the Ware- year. That property is expected to brokerage who has a listing to sell hotel on empty upper floors of the bring: millions of people who will house District or the Flats or Gate- bring more convention visitors , a the properties for LR Development May Co. building after the Cleve- give it a new sense of vitality. way were developing separately.” ■
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18 CRAIN’S CLEVELAND BUSINESS GAME ON! APRIL 16 - 22, 2012 Urban: OHIO’SOTHER New Orleans, PLAYERS Detroit casinos fit well Horseshoe Casino Cincinnati continued from PAGE 15 come to New Orleans also are big Expected open date: Spring 2013 operate the casinos in Cleveland pluses, she said. and Cincinnati, noted, “Obviously, “It was a new industry, so there he $400 million Horseshoe we paid a premium in order to do was a lot of trepidation about how Casino Cincinnati is a that.” it would fit into New Orleans,” Ms. partnership between Dan The limitations would have been Connick recalled. “There were some Gilbert’s Rock Gaming LLC fewer had the operators built from concerns related to an increase in Tand Caesars Entertainment Corp., the ground up rather than renovating crime, to the fact that the casino the same group developing Cleve- a former department store, agreed would detract from local businesses, land’s Horseshoe Casino. Marcus G. Glover, general manager both hotels and restaurants. I can The Las Vegas-style Cincinnati of Horseshoe Cleveland. tell you that none of those things RENDERING PROVIDED casino will be a 354,000-square- “We feel it will add a very unique have come true.” foot, two-story property on 20 acres aspect to this casino experience,” Crime has not increased, she in the city’s Over-the-Rhine district. Mr. Glover said. “Just as much as said, noting that statistics are About 100,000 square feet will there were complexities to it, there reviewed periodically, though less Gamblers’ problems can worsen house 2,300 slot machines, 73 table were benefits to it.” frequently now that the casino has games and a 31-table World Series been operating for 14 years. In One of the biggest problems that “Those people with existing of Poker room. There will be a Already in the game addition, the casino partners with can be created by urban casinos — problems may be able to get into a high-limits gaming area and a VIP The reports out of New Orleans local restaurants and hotels, “so or gambling itself — is when people lot deeper debt, may be able to players’ lounge. and Detroit regarding those cities’ those industries have not suffered spend down their savings and destroy gamble at much higher stakes much A 33,000-square-foot second urban casinos are largely positive. at all.” their wealth, noted Bill Eadington, more frequently … because that is level will have multipurpose and The city of Detroit pulls in about Harrah’s New Orleans also is a director of the Institute for the now much more available, so $175 million a year in tax revenues terrific corporate citizen, she noted, Study of Gambling and Commercial proximity does matter,” Mr. Whyte from its three casinos. And in New citing the community service its Gaming at the University of Nevada, said. Orleans, Harrah’s New Orleans is employees do and how casino Reno. That’s a less tangible, harder- Mr. Whyte did say, however, that Hollywood Casino expected to generate roughly $30 executives serve on various boards to-measure consequence. the prevalence of people gambling million for the city in taxes in 2012 throughout the community. What is known, however, is that to make money rather than Columbus alone, according to Cynthia Connick, Expected open date: Fourth More wouldn’t be merrier casinos tend not to increase an gambling for fun is probably higher who’s been involved with the casino area’s number of problem gamblers at urban casinos. quarter 2012 since its inception. Marvin W. Beatty, spokesman for so much as they increase the Horseshoe Casino Cleveland’s Initially, New Orleans’ downtown Greektown Casino-Hotel in severity of the problem some people people are trained to identify problem he $400 million Hollywood casino operator had hurdles to Detroit, said his property has already have, noted Keith Whyte, gamers, and the referendum that Casino Columbus will have clear — namely, bankruptcy after it strengthened Detroit in many of the executive director of The National allowed the casinos also allocates 3,000 slot machines, 70 encountered financing struggles same ways. Council on Problem Gambling in tax dollars to provide resources for table games, a 30-table Tpoker room and two restaurants — during construction. “From our vantage point, we’ve Washington, D.C. The impact of them, said Matt Cullen, president Over the years, however, the been nothing but positive for the urban casinos isn’t materially different and chief operating officer of Rock an Epic Buffet and a Final Cut casino has drawn tourists and locals city,” said Mr. Beatty, vice president from that of destination casinos, he Gaming LLC. Steakhouse — as well as a sports back to downtown, said Ms. Connick, of community and public affairs. noted. — Michelle Park bar, lounge and entertainment executive director of Rivergate “We’ve hired people. We’ve paid venue. Development Corp., an agency the taxes. We’ve built infrastructure.” Originally planned for downtown, city created to develop a defunct The Greektown casino opened in reasons why the casino has been where more than 20 already operate. the location for the casino was convention center site into the November 2000, around the same good for Detroit, Mr. Beatty noted The math, he said, speaks for moved to a 123-acre site west of the casino. Nationwide marketing by time all three of Detroit’s privately that he opposes an effort to put on itself: The annual revenue created city that previously was home to a the casino and the loyalty perks it developed casinos opened. a statewide ballot a proposal to by casinos in Michigan has not Delphi auto parts plant. The Holly- uses to give people an incentive to Though he has no shortage of build eight more casinos in Michigan, changed materially as more casinos wood Casino Columbus will be have opened. To expand the 300,000 square feet, including the number, the pool of people being parking garage; the casino floor is drawn upon and the frequency with about 130,000 square feet. which people go to casinos would Penn National Gaming Inc., the need to change, and he doubts developer of both the Columbus either will. and Toledo casinos, has carried its “I think the reality of it is you will Hollywood brand through both end up moving money from one locations. Ohio spokesman Bob pocket to the other,” Mr. Beatty Tenenbaum said visitors can expect said. to see an art deco, 1930s Hollywood Attempts to reach municipal design. leaders in both New Orleans and With ties to several major Holly- Detroit by Crain’s deadline were wood studios, Penn National will unsuccessful. cover its casino walls with enlarged movie posters from classic and Win, lose or draw? current movies. Movie trailers will One of the main differences play on large multimedia screens between urban casinos and desti- throughout the casino, while the nation casinos is the people they sports bar area will show a variety draw. A Las Vegas casino “exports” goods and services produced to tourists who come from out of Hollywood Casino Toledo market, the University of Nevada, Expected open date: Week of Reno’s Mr. Eadington said. Ohio’s May 28 casinos, meanwhile, likely will be frequented most by locals who live he Hollywood Casino within a 30- to 40-mile radius. Toledo will have 2,000 slot “You’re going to be cannibalizing machines and 60 table other businesses,” he suggested. “It games, plus a 20-table sucks up a lot of money that would Tpoker room. go elsewhere in the community.” The $300 million, 290,000- That said, there also will be those square-foot casino and parking who come to town, and those who garage is owned and operated by would have gone elsewhere who Penn National Gaming Inc., and the now may choose local entertainment. same art deco, 1930s Hollywood That phenomenon has some of the motif that’s being used in the com- economic benefit that tourism pany’s Columbus location will be would have, he said. carried out at the northwest Ohio Ultimately, the impact of the site. casino in Cleveland will be judged The casino will include modern by the city’s own success, Horseshoe touches, including a $10 million Cleveland’s Mr. Cullen said. multimedia system flashing movie “We think we can be a part of a trailers and scenes from classic transformation within the city of films, and the sports bar will feature Cleveland,” he said. ■ sporting event coverage. 20120416-NEWS--19-NAT-CCI-CL_-- 4/13/2012 10:53 AM Page 1
APRIL 16 - 22, 2012 GAME ON! CRAIN’S CLEVELAND BUSINESS 19
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special function space for business generate $100 million annually in It’s time. meetings, social events and enter- gaming tax revenue. Local distrib- tainment. ution of gaming taxes will provide The Cincinnati casino will have approximately $21 million to the a steakhouse, buffet and food court, city of Cincinnati, $12.2 million to as well as a coffee shop and bar. Hamilton County and $14.1 The Horseshoe Casino Cincinnati million to Hamilton County school is expected to create about 1,700 jobs. districts during its first full year of It is projected the casino will operations. — Kimberly Bonvissuto Cleveland 216.363.0100 Canton 330.966.9400 Elyria 440.323.3200 maloneynovotny.com
of sporting events. Corp. to train about 1,200 of its “It’s a relatively new concept that anticipated 2,000 employees. all Penn National casinos will carry,” Columbus State Community said Mr. Tenenbaum, adding that College will offer culinary training Penn National has remodeled sever- for food service operations; Hon- al older casinos to bring them in line dros College will train prospective with the Hollywood theme. “These table-game dealers; and Central are primarily entertainment facili- Ohio Technical College will train for ties, and everyone relates to the a variety of nongaming positions, movies. It’s a very high-end rendi- including technicians, casino cage tion of something people are famil- employees, safety personnel and iar with and enjoy.” first responders. Hollywood Casino Columbus Penn National Gaming owns 19 has an agreement with three casinos throughout the United central Ohio colleges and the Cen- States. The University of Akron tral Ohio Workforce Investment — Kimberly Bonvissuto MBA Program Ranked #1 in NE Ohio.* Get ahead with a Saturday MBA.
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20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 16 - 22, 2012 Faces: From clay to bronze, process is long Prices: For continued from PAGE 1 now, a way to all over the country and locally at Cleveland Browns headquarters in Berea, University Hospitals’ new cover costs Ahuja Medical Center in Beachwood continued from PAGE 1 and at University Circle, soon will David Deming’s prices; then they’re rolled back.” have his latest work — a sculpture of sculpture work Dr. Hill said a scattered number of former Plain Dealer rock critic Jane includes the price increases doesn’t signify a trend Scott — unveiled at the Rock and late Stephanie necessarily, but always is a good sign. Roll Hall of Fame and Museum in Tubbs Jones, The automotive supply chain is one downtown Cleveland. who sits outside area in which he has seen promise. The sculpture originally was set to the Western As sales have risen, manufacturers be installed at the museum for the Reserve started aggressively pricing goods. Rock Hall’s celebration of the April Historical “Particularly, the OEMs (original 14 induction ceremonies in Cleve- Society in equipment manufacturers) are land, but instead will go in around University treating their suppliers a bit better,” the Fourth of July, Mr. Deming Circle, and late Dr. Hill said. “They’re not trying to said. Most recently, he completed an Cleveland bankrupt the supply chain.” 8-foot sculpture of former University Browns owner Among those suppliers is Akron- of Texas running back Ricky Williams, Al Lerner, who based Goodyear Tire & Rubber Co., which was unveiled April 1 in Austin, stands guard at which this month increased prices 6% Texas, at the school’s annual spring team headquar- in its U.S. replacement consumer tire football game. ters in Berea. business, which supplies tires to dealers. Mr. Deming, a 1967 graduate of PHOTOS PROVIDED Last November, Goodyear upped CIA, said he figured out pretty quickly the price of its commercial truck tires that sculpting was his forte: In an And the late Al Lerner, who owned anything sticking off the sculpture Mr. Deming next April will take a by 10% in order to offset rising raw early class at the school, still harboring the Browns, watches over the that opposing fans can rip off, so the full-size piece to the University of material costs, which in 2011 climbed thoughts of a career as a portrait team’s Berea headquarters. Those dreadlocks were difficult.” Texas, of major track and field 30% compared to the previous year. painter, he discovered there wasn’t sculptures are in addition to busts Studio Foundry cast the work in donor Mike Myers. He also sculpted enough depth in that genre. How? that include University Hospitals bronze, and Mr. Deming drove the the Hall of Fame plaques embedded A greener bottom line He was poking holes in the paper. benefactor Monte Ahuja and his full-size Ricky to Austin by pulling in the exterior walls of Cleveland Chart Industries’ Distribution and “Painting wasn’t physical enough, wife, Usha; Norma and Al Lerner; a 16-foot trailer behind his GMC Browns Stadium. Storage Group will raise prices next I found out,” he said. He later earned and James Pender, former CEO of Denali. Ricky weighs 1,200 to 1,500 But busts and sculptures aren’t month by 5% on its atmospheric and a master’s of fine arts from Cran- insurance brokerage Oswald Cos. pounds with a bronze base, Mr. Mr. Deming’s only specialties. His CO2 bulk tanks, and by 3% to 5% on brook Academy of Art in Bloomfield All that led to Mr. Deming’s most Deming estimated, and he now sits studio at the old Lake Erie Screw its packaged gas transportable prod- Hills, Mich. recent work, the sculpture of Mr. in the same corner of Darrell K. factory on Athens Avenue in Lake- ucts and MicroBulk vessels. Prior to re-joining CIA in 1998, Mr. Williams, the enigmatic and mari- Royal-Texas Memorial Stadium as a wood — where Mr. Deming grew Kenneth Webster, vice president, Deming was a professor, sculptor juana-loving former University of statue of Earl Campbell, another up, attended high school and now chief accounting officer and controller and administrator at the University Texas player and No. 1 overall pick former Texas running back and the has been for two years since retiring of Chart Industries, said the price hikes of Texas for 26 years, completing in the 1999 NFL draft. The creative school’s other Heisman Trophy from CIA — overflows with abstract are tied to rising freight costs, fuel busts of such figures as Southwest process took about nine months, winner. welds of random tools and of prices and material costs that have Airlines’ then-CEO Herb Kelleher, with the modeling lasting about Jim Baker, formerly associate unique dog pieces. He got started eaten at the company’s bottom line. former Texas congressman and three months and the bronze casting athletic director for events at Texas on the latter while in Texas, when “This year it’s more of a factor of Lyndon Baines Johnson confidant — done by Studio Foundry, located and now athletic director at the the Texas Fine Art Association covering costs. I think longer term it Jake Pickle, and former president on Cleveland’s near East Side — University of Texas at Arlington, sat asked for something themed to the should be a positive for us. As long as George H.W. Bush. lasting five to six months. That’s on a committee of three in charge subject of time for a fundraiser. demand is maintained, I would say But Mr. Deming struggled to win atypical, as Mr. Deming said the Jane of picking the sculptor. He said Mr. His work quickly resembled a I’ll be fairly optimistic,” said Mr. commissioned work for full figures, Scott work took only about four Deming’s past work and his ties to dog — an oxygen tank for the head Webster of price increases sticking. because he didn’t have any to his months total. Texas were big factors in commis- and plumbing parts for the toes, Chart Industries is benefiting from name. So, about eight to 10 years Mr. Deming starts with a small sioning him. with random metals welded into increased demand for its products ago, he created a larger-than-life- model of what he wants a sculpture Mr. Baker said the school did not shape — so he finished it, thinking because of the hydraulic fracturing, size figure of Patrick Parker, Parker to look like. In Mr. Williams’ case, he make it easy on Mr. Deming, but he’d find another idea for a time- or fracking, activity in the oil and gas Hannifin Corp.’s former CEO. Then, then formed the frame of the full-size Texas was happy with the result. themed piece later. industry. But even Cleveland-based the work followed. figure with angle iron and packed Mr. Deming also produced a three- Instead, he gave the association paint maker Sherwin-Williams Co., Dreading the dreadlocks that frame with oil-based clay; foot version of the statue to give to the dog, which sold for $5,000. which operates in the beleaguered challenges included Mr. Williams’ the lead donor for the main sculp- Now, pieces in his “encounter” housing sector, has raised prices, There’s his re-creation of the late dreadlocks and his signature visor on ture now inside the stadium. series, of dogs playing or fighting and apparently also has benefited. U.S. Rep. Stephanie Tubbs Jones, his helmet. (depending upon how you view Last week, Sherwin-Williams Co. who sits on a bench outside the “You know how these college His work goes to the dogs dog interactions), typically sell for announced that it was raising its Western Reserve Historical Society. rivalries are,” he said. “You can’t have In addition to his Jane Scott piece, $15,000. ■ estimate of the sales and earnings it expects to report for the first quarter largely because of an approximately 20% increase in sales within its Paint Stores Group. Sherwin-Williams said Drug: Alzheimer’s sufferers clamor for treatment the increase was due to higher sales volume and price increases. continued from PAGE 3 in humans, Dr. Rafii said. The company’s patent on the drug happens to a person’s brain if you re- Mike Conway, director of corporate Other scientists have been im- Not only are humans and mice expires this year. move beta-amyloid so quickly. communications and investor rela- pressed by the research, published physically much different, but the “It’s got a history. We know some- Needed: Lots of money tions for Sherwin-Williams, declined in February in the online version of mouse version of Alzheimer’s is dif- thing about its safety,” he said. to comment on the extent of the the journal Science. Among them is ferent than the human version, he The research has caught the atten- If a phase I clinical trial was to company’s price increases in advance Dr. Michael Rafii, associate medical said. For one, the mice, bred to have tion of families affected by start today, it still would take five of its investor conference call sched- director of the Alzheimer’s Disease a rare dominant gene that causes Alzheimer’s. to seven years before ReXceptor uled for this Thursday, April 19. Cooperative Study, a group based in Alzheimer’s in humans, don’t suffer Dr. Landreth said he has received could finish testing the drug in La Jolla, Calif., that works to advance permanent neural damage, but hu- hundreds of emails and phone calls Alzheimer’s patients and win FDA Exception to the rule research related to the disease. mans with Alzheimer’s eventually do. from people clamoring to receive the approval to start selling bexarotene Of course, not every manufacturer Dr. Rafii described the results as drug. He instead directs them to the for use in treating Alzheimer’s, said has had to hold off on raising prices. “startling.” Though other drugs Words of warning Alzheimer’s Association, which pairs Michael Haag, a technology transfer Cleveland-based Pipe Line Devel- have shown the ability to remove Dr. Bill Thies, chief medical and patients with clinical trials testing official at CWRU who is serving as opment Co., which makes pipeline beta-amyloid from the brains of scientific officer for the Chicago- various Alzheimer’s treatments. ReXceptor’s CEO. repair and maintenance fittings, mice, Dr. Rafii said he knows of no based Alzheimer’s Association, There’s a huge amount of desper- And there’s no telling whether escaped the prize freezes with which drugs that have done so as rapidly voiced similar cautions, noting that ation among the estimated 5.4 million the drug will make it through clinical many manufacturers have had to deal. as bexarotene. several researchers have created U.S. residents that have Alzheimer’s, trials or whether the company will Marketing manager Kim Smith said The research also is important treatments that worked in mice but Dr. Landreth said. Existing drugs attract the “hundreds of millions of the 98-employee Pipe Line was able to because it represents “a different failed in Alzheimer’s patients. just treat symptoms while the con- dollars” that will be needed to com- raise prices during the recession pathway to target in the treatment Still, Dr. Thies lauded the study. dition grows worse, he said. Multiple plete all of them, Mr. Haag said. because of the firm’s overseas sales, of Alzheimer’s,” Dr. Rafii said. Drs. Landreth and Cramer are off to drugs that could reverse the condi- “We are going to be in need of a which account for 70% of its business, Whereas bexarotene uses ApoE to a good start, he added, given that tion are in clinical trials, but none strategic partner with that kind of and growth in the oil industry. remove beta-amyloid, other drugs the drug already has been approved have received FDA approval. money,” he said. “The dollar is weak and oil prices being tested use either antibodies by the U.S. Food & Drug Adminis- Even though bexarotene is on the However, the team wants to are high,” Ms. Smith said. to bind with the protein fragments or tration for treating skin cancer. The market, Dr. Landreth strongly build ReXceptor in the Cleveland Pipe Line’s sales have grown molecules that block the enzymes rarely prescribed drug is sold under recommends doctors avoid prescrib- area, Dr. Landreth said. about 8.6% per year, which officials that produce them. the brand name Targretin by phar- ing it for off-label use. For instance, “We’re committed to staying in plan to exceed in 2012, Ms. Smith Still, the drug needs to be proven maceutical firm Eisai Co. of Japan. he noted that no one knows what Northeast Ohio,” he said. ■ said. ■ 20120416-NEWS--21-NAT-CCI-CL_-- 4/13/2012 1:55 PM Page 1
APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 Permits: New business follows gas continued from PAGE 1 of Commerce and Convention & Spreading the wealth The department issued 179 Visitors Bureau, told the Cambridge Other areas soon will feel that same permits for horizontal fracking wells audience last week that working on boost, predict people such as Mr. in the Utica shale from Jan. 1, 2009, shale gas-related issues is now her Wickstrom and Chesapeake’s Mr. to March 31 of this year, though the full-time job, and it’s bringing new Sheppard. majority of the permitting activity business opportunities to the county. Chesapeake, for one, will continue has occurred in recent months. Every day, multiple people walk to move resources to Ohio from ODNR issued 90 horizontal well into her office in Carrollton seeking other states, Mr. Sheppard said. permits between Jan. 1 and March 31 property, office space, employees or Mr. Wickstrom also notes that of this year, its records show — and some other resource needed by while natural gas prices continue to observers say the number for April drillers and their suppliers, she said. fall, the price of oil is holding at could be even larger than the 37 Carrollton’s restaurants are busy, about $100 a barrel or more — and that permits issued in March, the last full hotels are booked and drillers are LAUREN RAFFERTY price is driving production to Ohio. month for which figures were avail- paving roads to gain their own access And don’t forget about plain old able. The number of horizontal drilling to rural sites. Many former one-lane crude oil, said Mr. Wickstrom, who permits issued by the state has gone dirt roads are now freshly paved two- meaning that 5% of the oil in the shale a volumetric approach like this is it’s estimates there are 5 billion barrels of up each month this year, with 23 lane roads, she said. will be extracted — though Mr. Wick- a guess, and we know we’re wrong,’” crude oil that can be recovered from issued in January and 30 in February. “We would have never been able strom noted that some drillers predict Mr. Wickstrom said. “But I’d rather be Ohio’s shale. That number, he said, But permits only tell part of the to upgrade those roads ourselves,” they’ll recover far more than that. low and be wrong” than to guess too reflects a recovery rate of about 5% — story, according to ODNR’s state she said. “About the most we can say about high, he said. ■ geologist, Larry Wickstrom. “What you really need to watch is the number of rigs in the state,” said Mr. Wickstrom, who spoke to Crain’s after addressing a crowd of several hundred people at a sold-out shale gas conference in Cambridge, Ohio, last Wednesday, April 11. Dig those rigs Mr. Wickstrom said with so much demand for rigs across the United States, each one is valuable — and any time they spend sitting idle is money lost for the energy companies that own them. Each rig can put in place a horizontally fracked well in Honoring Health Care Professionals, Volunteers & about three weeks, he said — and Champions of Corporate Wellness there are 21 rigs in the state so far. Eight of those rigs belong to the largest driller in the state, Chesapeake, 2012 AWARD RECIPIENTS and it will move more here this year, Administrator of the Year said company spokesman Pete Terry Davis, Our Lady of the Wayside Kenworthy. The company intends to Jan Murphy, Fairview Hospital have 20 rigs up and running in Ohio Awards luncheon by the end of this year, he said. Eileen Saffran, The Gathering Place If math isn’t your thing, 20 rigs, each Wednesday, May 23 Advancements in Health Care producing a new well every three Executive Caterers at Landerhaven weeks, equates to about 15 new wells Daniel Dietrich, NASA Glenn Research Center being drilled in Ohio each month, or a Registration: 11am pace of about 180 new wells a year. Allied Health Luncheon & Awards: 12:30 - 1:30pm But that’s just one company, and observers say when all the drillers Barbara Davis, Fieldstone Farm Therapeutic Riding Center active in Ohio are considered, the Marilyn Mount, PT, University Hospitals and Cleveland Clinic (retired) Reserve your tickets today pace of drilling will be much higher. Barbara Palmisano, Northeast Ohio Medical University Mr. Wickstrom estimates 200 hori- www.CrainsCleveland.com/hchtix zontal wells will be drilled in Ohio Health Care Advocate or call 216-771-5388 this year alone, and the pace will increase to about 1,000 new wells Elaine Borawski, Ph.D., Case Western Reserve School of Medicine per year by the end of 2014, he said. MedWish International Award recipient special section: Each well has an economic impact May 14 — they cost between $3 million and Nurse $6 million apiece to drill, require Barbara Humrick, Rainbow Babies & Children’s Hospital cement pads that take between five Advertising & sponsorship opportunities available. and 15 acres of space apiece, and take Joan Kavanagh, MSN, RN, ACNO, Cleveland Clinic in 5 million to 6 million gallons of Carole Wright, RN, Eliza Bryant Village Deadline: May 3 water during the drilling process, ac- Sexual Assault Nurse Examiner Team (SANE), Fairview Hospital Contact: Nicole Mastrangelo 216-771-5158 cording to various industry studies. They also use dozens of vendors and Physician or [email protected] suppliers, from water trucking com- panies to landscapers, studies show, Jeff Auletta, MD, Rainbow Babies & Children’s Hospital helping to multiply their impact. George Kikano, MD, CPE, FAAFP, FACPE, Case Western Reserve School of Medicine Carrollton is hopping Robert McLain, MD, Cleveland Clinic - Center for Spine Health Daniel Meges, MD, Care Alliance That impact already is felt in places such as Carroll County, which Mr. Wickstrom said is a hotbed of activity Volunteer Presented by: so far because its gas is rich in liquids. Marge Donley, The Renaissance/Eliza Jennings Senior Care Network Amy Rutledge, executive director Jack Kochis, Hospice of the Western Reserve of the Carroll County Chamber Kathy Pender, Beech Brook
Wellness: The Healthiest Employer Volume 33, Number 16 Crain’s Cleveland Busi- ness (ISSN 0197-2375) is published weekly, except ERC for combined issues on the fourth week of May and Hattie Larlham fifth week of May, the fourth week of June and first Sponsored by: week of July, the third week of December and fourth Independence Excavating. Inc. week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 Medical Mutual of Ohio by Crain Communications Inc. Periodicals postage University Hospitals paid at Cleveland, Ohio, and at additional mailing of- fices. Price per copy: $2.00. 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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APRIL 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Guess he knows which how to meet the U.S.’s energy needs. — Dan firm committed to downtown for another 11 APRIL 9 - 15 Shingler years in its renewed lease. That lease affords way the wind is blowing the firm about 5,000 more square feet, Schools, teachers agree to agree: ■ The 500 or so people at the Ohio Shale MAI spreads the wealth bringing its total to 25,000. —Michelle Park Cleveland Mayor Frank Jackson and David Energy conference in Cambridge last in its updated offices Quolke, president of the Cleveland Teachers Union, Wednesday might have noticed that one of This video gets to the reached an agreement on a plan to reform the the discussion leaders ■ More than $1 million of renovations have Cleveland Metropolitan School District. The was Ed Weston, the man equipped the downtown Cleveland offices heart of the matter reform effort, called the Cleveland Transforma- who built the Cleveland- of MAI Wealth Advisors with a café, a trading ■ A five-minute video could help save lives tion Plan, would give the district greater flexibility based Great Lakes Wind room and … a living room. — or at least that’s what MetroHealth to close underperforming schools and to partner Network into an organi- Yes, the wealth management firm turned pulmonologist Daryl Thornton has discov- with charter schools. It also would give school zation of more than a conference room into a living room, com- ered. principals greater responsibility over budgeting 1,000 U.S. companies in plete with “nice cushy chairs and a couch” Dr. Thornton, also an assistant professor and hiring. A key to the accord was the mayor’s the wind energy field. — an effort to provide a casual, relaxed in the Center for Reducing Health Disparities decision to abandon his call for tearing up the At a conference touting atmosphere for clients, said Rick Buoncore, at Case Western Reserve University, dispatched existing contract with the teachers’ union in Weston the advantages of shale MAI managing partner. a team of researchers to area Bureau of order to give the union and the district a so-called gas? Finishing touches are under way, and an Motor Vehicles offices and armed them with “fresh start” on their relationship. The mayor You bet, said Mr. Weston, who was quick open house is planned for the summer at iPods loaded with a video encouraging said agreement on eight other key elements of to say that his presence did not mean he’s the offices, located on the 11th and 12th floors people to become organ donors. the plan eliminated the need for tearing up the lost enthusiasm for wind energy. He still of the IMG Building on East Ninth Street. Turns out, the simple trick worked, as existing contract. For more on Mr. Quolke, see believes in it, but he also thinks natural gas The firm’s predecessor office was opened 84% of those who watched the video became Page 8. is likely to serve as an energy bridge that in the building about 50 years ago, and this organ donors compared to 72% of those helps get the nation away from its dirtiest is the first major renovation, Mr. Buoncore who didn’t watch the video, according to his source of energy, coal, to eventually using said. research published this month in the Annals wind, solar and other forms of renewable The café is a large room with an island of Internal Medicine, a medical journal. The power. Natural gas burns cleaner than coal, where people can eat and the firm can results were more dramatic among the but like any fossil fuel still releases carbon conduct its monthly town hall meetings. African-American community, as 76% of and other pollutants into the atmosphere The trading room is an interactive space those who watched the video became organ when it’s burned. with four large television screens on the wall donors compared with 54% of those who But there’s another reason Mr. Weston where MAI executives can host webinars didn’t. said he supports natural gas — because doing and can hold demonstrations, such as on “As far as effective interventions go, it’s so serves the members of his wind network. portfolio hedging, for clients. cheap, it’s brief and it’s potent,” Dr. Thornton “We did some research and found that “It’s a lot easier seeing it and hearing it, said. “There shouldn’t be much resistance most of them are already in the oil and gas versus looking over someone’s shoulder at to implementing it on a large scale.” New items on the menu: Country music industry,” Mr. Weston said. their desk,” Mr. Buoncore said. Dr. Thornton said his next step is working star Toby Keith’s namesake bar and grill head- He didn’t mention that as the price of The $1.3 million project wasn’t only for the with the state of Ohio to make the videos a lines five new restaurants that developers of natural gas drops, it’s crowding out wind in benefit of the firm’s clients and employees, regular part of BMV operations. — Timothy the Flats East Bank project announced have both local and national conversations about but for the city, too, he said, noting how the Magaw committed to taking space at the mixed-use project in Cleveland’s Flats. Other eateries that plan to join Toby Keith’s I Love This Bar & Grill are Ken Stewart’s, part of the Ken Stewart’s family WHAT’S NEW BEST OF THE BLOGS of upscale restaurants; restaurateur Fabio Salerno’s mortgage, Mr. Burns received a grant from Lago, which offers Italian food at four Cleveland- Excerpts from recent blog entries on a government fund using money repaid area locations; Flip Side, a high-end burger CrainsCleveland.com. from the 2008 bank bailout. However, Reuters concept with operations at First & Main in Hudson said, the grant is due to expire in early 2013. and Easton in Columbus; and Dos Tequilas, a Get ready for more Mr. Burns told Reuters flatly, “If things Mexican restaurant. housing pain this year don’t pick up, I will be out on the street.” Sticking close to home: Plastics resins ■ A Reuters story, reported largely from supplier A. Schulman Inc. plans to move its Northeast Ohio, served as a warning for Organizational fiends of headquarters to a new location in Fairlawn two anyone who thought the strengthening miles from its current home. The new building, economy was going to bring an end to the the world unite in Cleveland which will anchor the new Fairlawn Corporate housing slump. ■ Clevelanders are among the most orga- Park, will be 34,000 square feet and will house Rather, the news service said, “a painful nized people in the country when it comes 130 employees. A. Schulman also will move Part Two of the slump looks set to unfold: to detail-oriented tasks such as maintaining employees from its Akron Product Technology THE COMPANY: Diversified Fall Many more U.S. homeowners face the financial records and filing taxes on time, Center to the new building and to its Akron Protection, Westlake prospect of losing their homes this year as according to a Forbes.com post based on a manufacturing operations, and says it plans to banks pick up the pace of foreclosures.” new ranking by doxo, an e-payment website sell the technology center and its current head- THE PRODUCT: Loading Dock Mark Seifert, executive director of and “digital filing cabinet.” quarters building. The latter will be bought by Rolling Safety Gate Empowering and Strengthening Ohio’s Steve Shivers, co-founder and CEO of Landridge Development of Fairlawn, from People, a counseling group with 10 offices doxo, told Forbes.com the timing of when which A. Schulman will lease its new headquarters. The company recently unveiled an improved in Ohio, told Reuters, “We are right back people file their taxes suggests “who’s got loading dock safety gate that complements where we were two years their junk drawers in order.” Welcome to Akron: University Park Alliance, its existing line of fall protection products. ago. I would put money on The firm “looked at sev- a nonprofit development corporation in Akron, The OSHA-compliant rolling safety gate 2012 being a bigger year for eral metrics of organization has signed an agreement with Equity Inc. of protects workers from loading dock falls and foreclosures than 2010.” to compile the first annual Columbus for the real estate developer to is available in six-, eight- and 10-foot stock He added, “Last year was list of the Most Organized construct and manage the first two buildings of widths, according to Diversified Fall Protection. an anomaly, and not in a Cities, just in time for tax a planned mixed-use development at East Market “The average loading dock poses a four- good way.” In 2011, the season,” the website reported. and Forge streets in Akron. The partners did not foot fall hazard, which is enough to cause “robo-signing” scandal, in “Each city’s numbers were put a cost on the two structures, which will be serious injury or death to pedestrians and which foreclosure docu- tallied and the Metros Equity’s first projects in Akron. University Park fork lift operators,” says company president ments were signed without awarded a ranking on the Alliance said Equity plans to start construction Jeff Schneid. being properly reviewed, dOI, the ‘doxo Organizational this spring on a two-story, 25,000-square-foot The barrier system’s pivoting design uses prompted banks to hold back Index.’” building that will house Child Guidance & Family a rolling wheel that provides total accessibility on new foreclosures pending a settlement. The firm ranked large U.S. cities based Solutions of Akron. Also planned is a 75,000- to the dock’s overhead door and truck Numbers available so far this year back on a number of key organization factors square-foot commercial building. opening, according to the company. When up those statements. For instance, mort- broken down by what doxo called “Primary” not in use, the safety gate “is easily rolled gage servicing provider Lender Processing and “Secondary” factors. Primary factors Capital keeps coming: Radisphere National back to the locked and protected position.” Services reported in early March that U.S. include recycling rates, individual income Radiology Group Inc. has raised another $5 The pivot-and-roll feature “eliminates lifting and foreclosure starts jumped 28% in January. tax filing timeliness and junk mail cancella- million in equity financing, capping a $15 million removing heavy sections of portable guard Although foreclosure starts were well below tions. An example of a secondary factor is investment round. Three investors contributed to rail, keeping loading docks gated and OSHA- the same period in 2010, those begun by concentration of members of the National the round, according to documents Radisphere compliant when not in use,” the company Deutsche Bank were up 47% from last year, Association of Professional Organizers. filed with the Securities and Exchange Commis- says. while those of Wells Fargo rose 68%. By this measure, Cleveland is the country’s sion. The company, which has its largest office A floor-based, pin lock feature also Still caught up in the crisis is Daniel 13th-most-organized city, ahead of Denver in Beachwood, provides remote and on-site reduces tripping hazards posed by other Burns, 52, a Garfield Heights resident who and behind Pittsburgh. (Isn’t that always the radiology services to community hospitals. mobile dock safety gates currently on the in December 2010 lost his job as a long-haul case?) No. 1 was Boston, followed by market, according to the company. truck driver and manager. To cover his Raleigh, N.C., and Miami. 20120416-NEWS--24-NAT-CCI-CL_-- 4/13/2012 1:13 PM Page 1
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